The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-06-06

San Francisco, June 5.-The Exan1in
er's Washington correspondent tele-
graphs as follows:
Attorney General Olney has filed
against the estate of the late Senator
Stanford claim in behalf of the
United States for the sum of SIS, 900, 0O0
that being the proportionate share of
the debt of the Central Pacific railroad
that estate owes the government under
the theory that the personal assets of
the individual members Of the original
Central Pacific syndicate are liable for
the debt of that corporation due, or to
become due, to the United States.
He frankly discussed that part of the
case properly made public at this time,
and from him and other sources in the
department much of interest was Sc
cured as to the present status of the
matter.
The attorney-general admitted that
the claim had been filed, and explained
that it was filed under the California
statutes in order to prevent the statute
of limitation from running against it.
That is. he explained, while the statute
of limitation cannot run against the
United States, yet an estate against
which the United States has claim
may be probated, settled and divided
without regard to the United States
claim, unless such claim is filed within
the period provided in the state laws
for such filing. Otherwise an estate
against which the United States had a
possible claim could never be settled.
1t is known that Attorney General
Olney has given as much time to the
consideration of the Central Pacific
matter as the other duties Of his office
would permit. 1t was one of the first
things brought to his attention when
he assumed charge, and has, perhaps,
given him as much, or more, trouble
than any other question that has come
before him The death of Stanford
made necessary the action just taken,
lest his estate. like those of the other
deceased members Of the original syndi-
cate, should be settled up and divided
The encouragement has personal
knowledge Of the fate of the Hopkins
estate. as Mrs. Hopkins resided after
the death of Mark Hopkins in Massa-
chusetts, and there married again and
then died, leaving behind her a sensa-
tional lawsuit over the big Hopkins
estate. This. however. was compro-
missed and the estate divided as in the
case of Croker and Cotton.
The encouragement and other Of
pursuing this matter have had fire.
quent conferences with the California
representatives. The encouragement
gained from them all the facts in their
possession and their views of what
should be done.
The general theory upon which the
department is proceeding seems to be
that the original Central Pacific syndi-
cate, Huntington, Stanford, Hopkins,
Croker and Cotton, really constituted
a ce-partnership, controlling at all
times and absolutely all the construc-
ton companies and other corporal tons
connected with or engaged in building
the road, and used such companies and
side corporations as a mere agency to
further their personal ends and to erect
the fabric of their fortunes Under
this theory the failure of the Central
Pacific to meet its engagements was
caused by the diversion of the road.
through these agencies. to the members
of the syndicate, and that these persons
were involuntary trustees of the funds
thus diverted, and that, therefore. their
private fortunes, thus obtained, being
the ultimate proceeds of such diverted
earnings of the road are properly liable
for the debt thus created and left un-
paid.
1t could not be learned what course
the department would pursue if the
claim against the Stanford estate is
rejected, further than it would be
prosecuted under the California laws
in the proper court. as the department
understands the latter to be still in the
probate court.