The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-10-13
MRS. STANFORD WINS.
The Court OF Appeals Decides Against
the Government.

atac government.
San Francisco, Oct Ia-Afrs Leland
Stanford has wen another victory from
the United States government, this time
in the United States court OF appeals
The decision handed down today was
signed by United States Circuit Judge
Gilbert and United States District Judges
Morrow and Hawiey. 1t is given on an
appeal taken from the previous order OF
Judge Ross sustaining the demurrer of
Mrs. Stanford 20 the suit brought against
her 70 recover $l5.S57, 0oa alleged 10 be due
the government from her husbands es-
tate on account OF Central Pacific bonds
As the decision IS an affirmatl ton OF the
correctness OF the position already taken
by Judge Ross there - no relief 10 be OBJ
tained in the premises through a suit in
equity. II is held that II the liability ex-
lists II IS purely "A creature of statute"
The usual privileges for the amendment
Of the complaint and the rearguing of the
case were offered the counsel for the
government. bur IL was stated that the
governments attorney would not take
advantage OF the offer. 1t is understood
that the case viii be appealed 10 the su-
preme court Of the United States.
The opinion rehearsed the facts con-
nected with the creation OF the debt. and
stated the question before the court TO be
whether the stockholders were TO be held
individually liable for the debts of the
company. There had been an omission in
the contract as TO the means by which
the debt could be collected in case OF the
companys failure 10 meet its obligation:
but this was unimportant, as in its alb
sence the law provided means for secur-
ing payment Tne court held that the
liability of the stockholders of the Cen
trail Pacific should not be different than
that Of those OF the Union Pacific. and
had there been consolidation of the two
mt FFa.a .4c
collected from the stockholders: and what
would apply 10 them then applied now.
Judge Gilbert, who read the decision
cited AZ length the laws governing the
stockholders Of the Union Pacific. In this
instance the shareholders were not held
liable, and it is explicitly so stated in the
charter, which was obtained in Illinois,
On the other hand, the state of California
imposed a personal liability clause when
the Central Pacific was incorporated.
But said the court, ''is il reasonable
TO suppose that when the government
granted the two roads subsidies that it
intended to hold the shareholders of the
one personally liable and not the other?
Can il be imputed that this was the in
tent OF congress when il set aside lands
and assumed part of the debt Of the com
pany?" The court further on urged that
1t was the intention OF congress TO put
both roads on the same footing. Judge
Davis, OF Illinois, has already decided
that the Union Pacific Stockholders were
not liable. Again the court remarked:
1T is not reasonable 10 presume that in
dividuals would have engaged in such an
enterprise were they 10 !mperil not only
their investments, but their private for
tunes"
After Judge Gilbert had concluded the
first man 10 congratulate Judge CARRIER.
Mrs Stanford's attorney was President
Jordan, OF the Leland Stanford, jr., uni
yersity. He was elated over the decision
and declared that it was a remarkable
paper.
Stanford University, Oct 12.-when the
decision in the Stanford suit was an
nounced here at noon the greatest enthu-
siasm prevailed among the students in
the dormitories.- They went wild. shaking
hands. hugging each other and yelling
themselves hoarse Steam whistles were
kept blowing and students with horns and
cowbells marched about the campus.
making as much noise possible. A
grand parade was held this evening.