The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-06-12
THE STANFORDDEBT
Attorney for the Estate Says
the Lien Is Void.
ceaRY AssAILs THE DEAD MAN.
n.x~rument Ownership Of Railroads
Crops Up In Discussion Of the
Governments Claim

xrr YORK. June u--Russell j. Wilson.
..torney for the estate of the late Leland
SANFORD. speaking today of the claim Of
- United States government against the
soekholders Of the Southern Pacific and
80 sling OF q claim against the Stanford
esfste, said:
.senator Stanford died on JHne II, 1898.
.ud the first notice TO the creditors Of his
- By the Law of the state Of Cali
sarnis ell claims not presented within
- months after such publication are
harred BY Limitation. So the govern
rent. after waiting until the Last day,
~nsdeuiv injected q claim into my Office.
Th;s way on May %. Saturday. when
hasiness houses close at noon. After
ward il was claimed the statute of iimita-
ian did not run against the government.
anyhow. ! offered them the privilege
81 sithdrawing the claim and testing
nat little point but they did not care TO
AL Our position IL that the govern
nent has no rights over the outside prop
sr<v OF stockholders. Ii man owes you
debt secured by mortgage and promis-
.sry note and you sell the security
uoder foreclosure and the proceeds
10 not pay the note you will
have q claim on him for the
tsxnee, but If you merely have lien on
etrtain Of bis property all yon can do 10 to
ii that. You have no further rights
sesjrst his property. We claim the gov
esament has merely a lien on the railroad
vbperty. They can take II at the proper
- If lhey wish, but they cannot pro-
a further against the stockholders"
III the Stanford estate had TO pay this
aim would there be much lett" was
Eked.
~oh, yes Mr.. Wilson said. "there
vould be very tidy fortune to most peo-
nae stilI remaining. / have not the slight
81 idea what the encouragement means
10 do or what action congress VIII take In
the matter"
WAsHIseTos CIIr. June 1f.-Before the
house committee on Pacific railroads to-
day Representative fieary argued strongly
thar the act creating the Genital Pacific
road contemplated that the governments
should take possession If there was default
In payment Heretofore the company had
never been in position TO proceed against
dishonest directors. but If the govern
ment took possession IL might reach back
TO 1862, and recover all the money diverted
through construction companies or other
wise. returning il TO the public treasury.
~ do not know" said Geary, why We
should put poor old Coxey. who trod on
three or four blades OF grass. In jail and
let go another criminal because of the
enormity of his offense who filches mill
ions, and defy him because in bis last
moments he erected with the peoples
money q university. We of California are
proud of that university, but ashamed of
the motives that built it. It was erected
from motives of revenge to destroy an
other university because the graduates
f<fased to make the founder trustee.
Would you wink at the crime through
xheh that institution was erected No
rsspsct for men living or dead should
kliad rs into leaving monuments to Grim
snsA that should be monuments to the
psepl&p
aysuld you have the government con-
to This railroad or all the roads7" in
gard member.
This railroad first, all the roads after
vard replied Mr.. Geary.
representative Mcguire stated that he
su opposed TO any funding measures pro-
riding for an extension of the period of
payment Of the Pacific debt.
Mr. Boatner inquired IL Mr.. Mcguire did
rot view this as an opportunity to expert
men, on government control OF railroads.
Mr. Mcguire answered that he regarded
mas an opportunity to settle the whole
railroad question. lie could see no reason
shy the government should give up the
chance of recovering 100000 of the
Stanford estate and the Huntington prop
srty. because the Hopkins and Croker
estates had been settled. The effect of
the funding bill would be TO postpone
foreclosure or other proceedings against
The stockholders until the expiration of
The funding period. Mr.. Maguire's
proposition was that the government
should secure the appointment OF q major
isy OF the directors of the Central Pacific.
who should institute suits to secure the
diverted funds. la conclusion he advo-
tailed the necessity OF legislation to sus-
pend the patenting of Pacific land grants.
Tor which he had introduced resolution
lolatly with Senator White.
question has arisen rs TO the effect of
Tue proposed Pacific railroad bill on the
individual liability of Stanford and other
stockholders for the government debt.
soae lawyers in congress, including Rep
fsseasauve Mcguire, of san Francisco.
Ns The new funding act will be IN the
nature OF settlement of the account be-
issen the government and the roads aud
vas settlement will DO an absolute aud
.asi discharge Of all the stockholders
nom individual liability The present
zese oil the attorney general against the
stanford estate Is based on the fact that
sas Pacific railroad debt Is about to