The state herald., 1895-07-05
q
MRS. STANFORD WINS.
Judge Ross Decides That tho Govcrnm .n
Cannot Collect from tho Estmtc.


Cannot Collect from tho Estate.
San Francisco. July Limited States
Circuit Judge Ross has rendered his de-
clsi0n on the demurrer OF Mrs. Jane l..
Stanford against the suit OF the govern
mcnt to recover S15,OOO.OoO from the
estate of her late husband. Leland
Stanford. The demurrer was sustained.
Judge Ross allowed the government 10
amend Its former complaint and reargue
Its case II 1t so desired. 1t was intim-
ated, however, that this step would not
affect the case. the law rs construed by
Judge Ross not favorlng the case of the
United States. The sustaining OF the
demurrer was n surprise. attorneys gen
orally expecting a contrary decision.
The court began by reading and eX-
planning the acts and statutes. both
state and federal. which had any bear
Ing on the construction OF the Central
Pacific railroad and It's branches. All
railroads west of the Missouri river
were, he said. constructed under the
same acts, so II one road was liable to
the government. all Of them were liable.
In nearly all OF the corporations Leland
Stanford was stakeholder. Together
with G. +. Huntington and the other
incorporators, he owned 100. $50 shares
Of the stock. The government. accord
Ing TO Its contract. Issued bonds TO aid
In the construction OF this road.
''rhc government had no intention OF
making these men individually rcspon-
slble." said Judge Ross. "rhat q,ies.
ton never entered into the contract. The
covenant did mol s,lpulate that the stock.
holders should repay the bonds. The
acceptance OF the bonds was an implied
act OF the stockholders 10 pay them.
The stockholders accepted the assist
ance OF the government with the agree
ment that they should pay FOR II. that
was all. In accepting them, of course IL
was believed that they would repay
them. The question remains, however.
whether the liability rested with the
stockholders.
There are no common law liabilities.
The state law fixes the liability OF stock.
holders In proportion 10 the amount OF
stock they possess. That law, however,
cannot bc held 10 apply In this case. as
It was passed subsequently, To the max.
Ing OF the government contract with the
Central Pacific company. The real
question involved IL whether there was
n contract between defendant and plain
TIL and whether there was u liability
proylso ltcvvrting TO the provisions In
the laws Of the United States there can
be found no such agreement. The stat.
utcs do not hold the defendants liable.
There Is absolutely nothing To establish
this fact, and ! sustain the demurrer
and give the plalnlln the power to
amend" concluded Judge Ross.
There was great rejoicing at the Stan
ford university when the news was re-.
cclved that Judge Ross had sustained
the demurrer In the east Of the govern.
mcnt against the Stanford estate. DIR.
Jordan. when Interviewed. said:
II think the decision virtually settles
the liability OF The property which Mr..
and Mrs. Stanford designed from the
university. While the ease may bc an.
pealed, II IL not likely that the decision
OF Judge Ross VIII bc reversed. I hop.
that the whole matter may he adjusted
during this year. In which ease Mrs.
Stamford viii do her best towards max.
Ing the university ns effective Ms posi-.
bic. Her policy win hc 10 make II M
strong M possible In the departments
already established, rather than attempt.
Ing mn excursion Into new fields or an
Increase of students"