The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-06-30
THE STAMFORD DECISION.

The decision of the case of the United
States against Jane l.. Stanford has been
handed down by Judge Ross, and is an
able and exhaustive opinion. In this re-
spect, at least, it accords with public expec-
tation, for Judge Ross is recognized by the
people of California as one of the most
capable and upright jurists who has ever
adorned the woolsack of the State or Fed
eral courts. He was, therefore, expected
to deal with this important cause upon
its merits, and to dispose. of it in
a comprehensive opinion devoid of
technicalities and full of reason
and good sense. In these elements the
decision satisfies the public mind.
Whether the result arrived at by Judge
Ross will meet with the approval of men
depends largely upon the point of view.
Looked at from the standpoint of
State interest, the people of California
should concur in the decision of the
Federal court. 1t is certainly better for
this State in the selfish sense that the great
properties and greater benefactions of
the Stanford estate should be permit
ted to be utilized according to the
intent of Senator Stanford and unim-
peded by the disaster which decision ad-
verse to his estate would email.
On the other hand, those who believe in
the measuring out of exact Justice be-
tween men and men and between men
and States regardless of local or temporary
interests will object to the conclusion
reached by Judge Ross and be inclined to
look upon it as another victory of wealth
and capital over right and law and reason,
and to insist that the case should be car
ried to the Supreme Court of the United
States for ultimate review and decision.
Those who do not agree with this decis-
ion will find it difficult to combat because
OF the fullness of its treatment of the SUBJ
iect and the lucidity and cogency of its
logic. The whole history of the Federal
legislation forming the contract between
the United States and the Central Pacific
Railroad Company and upon which the OBJ
legation of the latter to the Government is
based is passed under review, and it is made
to appear therefrom that the contractual
relations Of the two parties did not con-
template personal liability on the part OF
the stockholders of the company. Judge
Ross shows clearly that upon this point
the statutes are silent, and argues that
upon q matter of such Importance they
would surely have spoken if it had been
the intent of the parties that the share
holders should SO be bound
This really is the only material issue in
controversy. The opinion of Judge Ross
shows that the question of the statutory
liability of the stockholders of the Central
Pacific Railroad Company under the laws
of California has really nothing to do
with the case, for the reason that
whatever the rights of ordinary creditors
of this corporation might be under Sec
ton 500 OF the Civil Code the
Government is not such a creditor, be-
cause its rights depend upon its contract
and not upon the statute at all. In
other words a creditor of a Califor-
mia corporation may, by contract,
waive his claim to any personal
liability of its stockholders, and this 1t is
commended, the Federal Government has
done. 1t is matter of satisfaction to all
concerned that the case did not go off upon
the Issue of the application of the Califor-
mia statute as to the liability of stock
holders, which would have involved its
decision upon the technicality us to
whether the statute of limitations did or
did not apply.
1t is matter Of congratulation to the
State of California, and especially to the
Stanford estate, that this long threatened
and very important cause has reached the
point of decision.
1t will relieve very considerable strain
upon the estate and upon the great univer-
sity which its properties have endowed.
1t will also go long way to enlighten
public ODiniOn rs tn the real law and facts
upon which the claims of the Government
rest, and as to the propriety of further
prosecution of the case.