The Meeker herald. [volume] (Meeker, Colo.) 1885-current, 1895-07-06
MRS. STANFORD WINS.
Judge Ross Decides That the Governm en
Cannot Collect from the E,tat--

Cannot Collect from the E.tat--
San Francisco. July 1.-UnIted States
Circuit Judge Ross has rendered his de-
cision on the demurrer OF Mrs. Jane l..
Stanford against the suit Of the govern
ment to recover S1j,OOO,OOO from the
estate OF her late husband, Leland
Stanford. The demurrer was sustained.
Judge Ross allowed the government to
amend its former complaint and reargue
its case II it 80 desired. 1t was intim-
ated, however. that this step would not
affect the case. the law as construed by
Judge Ross not favoring the case OF the
United States. The sustaining OF the
demurrer was surprise, attorneys gen
orally expecting 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, 10 II one road was liable TO
the government, all OF them were liable.
In nearly all Of the corporations Leland
Stanford WAS a stakeholder. Together
with q. r. Huntington and the other
lncOrporaiorH, he owned 13O,SsO shares
Of the stock. The government, accord
ing TO it, contract, Issued bonds to aid
In the construction Of this road.
The government had no intention of
making there men Individually respon.
dble," said Judge Ross. 'rhat d,Jes.
ton never entered into the contract. The
covenant did not stIDulate that the stock.
holders should repay the bonds. The
acceptance of the bonds was an Implied
act Of the stockholders TO pay them.
The stockholders accepted the assist
snce 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.
me state law fixes the liability Of stock
holders In proportion 10 the amount Of
stock they POSSESS. That law, however.
cannot be held To apply In this case, as
u was passed subsequently t0 the max
Ing of the government contract with the
Central Pacific company. The reaI
question involved II whether there was
a contract between defendant and plain.
un and whether there was q liability
Droyiso. Heyeriing to the provisions In
the laws Of the United States there can
be found no such agreement. The stat.
ntes do not hold the defendants liable.
There Is absolutely nothing to establish
this fact, and ! sustain the demurrer
and give the Dlain'ln the power to
amend concluded Judge Hoss.
There was great rejoicing at the Stan
ford university when the news was re.
ceiyed that Judge Ifoss had sustained
the demurrer in the cast of the yoyeru-
mcnt against che Stanford estate, Or.
Jordan, when interviewed, said;
II think the decision virtually settles
the liability of the property which SIR,
and Mrs. Stanford designed from The
university. While the case may t,c m.
peaied, u X not likely that The decjsi1u
Of Judge Ross will be reversed. hone
mat the whole matter may be adjustrd
during this year. In which case Mrs.
Stamford viii do her best towards max
ing the university as effective as posi-.
Die Her policy viii be 10 make II az
strong as possible In the departments
already established, rather than attempt
ing an excursion into new fields or an
Increase Of studcntsN