Rocky Ford enterprise., 1895-07-04
MRS. STANFORD WINS.
Judge Ross Decides That the Govern mont
Cannot Collect from tho E.tat-.

Judge Ross Decides That tho Govern mont
Cannot Collect from tho E.tat-.
San Francisco, July Limited States
Circuit Judge Ross has rendered his de-
cisOn on the demurrer of Mrs. Jane l..
Stanford against the suit of the govern
ment to recover SIS 100000 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 IL 1t SO 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 a 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 its branches. All
railroads west of the Missouri river
were, he said, constructed under the
same acts, so If one road was liable to
the government, all of them were liable.
In nearly all of the corporations Leland
Stanford was a stockholder. Together
with G. P. Huntington and the other
incorporators, he owned 13O,SSO shares
of the stock. The government, accord
Ing to Its contract, issued bonds to aid
in the construction of this road.
"eThe government had no Intention of
making these men individually respon-
sible," said Judge Ross. "That ques-
ton never entered into the contract. The
covenant did not stipulate 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
ance of the government with the agree
ment that they should pay for 1t, that
was all. In accepting them, of course 1t
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 to the amount of
stock they possess. That law, however,
cannot be held to apply In this case, as
1t was passed subsequently to the max
Ing Of the government contract with the
Central Pacific company. The real
question involved is whether there was
a contract between defendant and plain
tiff and whether there was a liability
proviso. Reverting to the provisions In
the laws Of the United States there can
be found no such agreement. The stat
utes do not hold the defendants liable.
There is absolutely nothing to establish
this fact, and l sustain the demurrer
and give the plaintiff the power to
amend" concluded Judge Ross.
There was great rejoicing at the STAN
ford university when the news was re-
ceived that Judge Ross had sustained
the demurrer in the cast of the govern
ment against the Stanford estate. DR..
Jordan, when interviewed, said:
~ think the decision virtually settles
the liability of the property which Mr..
and Mrs. Stanford designed from the
university. While the case may be ap-
pealed, 1t is not likely that the decision
Of Judge Ross will be reversed. I hope
that the whole matter may be adjusted
during this year. in which case Mrs.
Stamford will do her best towards max
ing the university as effective as possi-
BILE. Her policy will be to make 1t as
strong as possible in the departments
already established, rather than attempt
ing an excursion into new fields or an
increase of students"