The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-03-16
FIFTEEN MILLION
DOLLARS CLAIMED.
SUIT COMMENCED IN THE CIRCUIT
COURT AGAINST STANFORD'S
ESTATE.
ACTION ORDERED BY OLNEY
UNCLE SAM WANTS THE MONEY
BACK THAT He LOANED THE
CENTRAL PACIFIC.

The suit of the United States against
Jane L. Stanford, executrix of the will OF
the late Senator Leland Stanford, has at
last been commenced III the United States
Circuit Court. L. E. McKisick, special
counsel appointed by Attorney General
Olney, filed his complaint yesterday, and
the trial of the case will be set for an early
hearing.
The amount sought to be recovered is
SIS, 237 900, the pro rata of the Stanford
estate due to Uncle Sam for moneys adj
vanced toward assisting in building the
Central Pacific Railroad. The entire
amount advanced at various times aggre-
gated $50, 600, 900.
For thirty years the matter drifted
along, and never once did Uncle Sam
think of asking for his money. In the
meantime, Mark Hopkins and Charles
Croker died, and their estates have been
distributed.
When the claim against Leland Stan
ford's estate had matured the Attorney
General thought it was time to take action.
Instructions were accordingly sent to
United States District Attorney Garter to
enter a claim against the estate for the
deceased's pro rata of the debt of the Cen
trail Pacific to the United States. This was
done and the claim was promptly rejected.
The refusal to entertain the claim was
forwarded to Washington, but as the re-
funding bill was then looming up nothing
was done in the matter. Once, however,
Acknowledgement Olney saw that the bill
was sure to be defeated and he appointed
special counsel to at once begin suit.
In consequence of this impending suit
Mrs. Stanford has been very much pushed
for ready money. She has been unable to
keep up payments toward the support OF
the Leland Stanford Jr. University and
should the case go against her the college
will be very much curtailed in its useful
ness if not closed altogether.
The complaint filed is voluminous one,
containing twenty pages OF typewriter
matter. 1t goes back to the incorporation
of the Central Pacific Company and re-
cites at length the various means resorted
to to build the road, points out how the
Government was induced to assist, and
ends with demand for Judgment against
the Stanford estate for its share Of the
money due the United States.
The complaint sets forth in detail:
That under and by virtue of the provisions of
sections 81, 80 and SO of the fourth article of
the constitution of the State of California,
then in force, and under and by virtue of the
State of California entitled can act to provide
for the Incorporation of railroad companies,
and in the management OF the affairs
thereof, and other matters pertaining
thereto" approved May 20, 1861, the
late Leland Stanford, testator of the
respondent, Jane L. Stanford; Coils P. Hunt
ington, Mark Hopkins, Charles Croker and
Others, did on the 2Sth day of June, 1861, asso-
| ciate themselves together for the purpose of
and did on the 2Sth of June, in 1861, by arti-
cles in writing, duly executed and acknowl
| edged by them, organize railroad corpora
| ton by the name and style OF the Central Pa
cifie Railroad Company OF California, and that
| the capital stock of said corporation was fixed
| in the sum of So, 100000.
1t is shown that of the shares subscribed
for, many of them-about 267 shares Oh
| Observation-Disclosures the 10th day of Janu.
airy became forfeited to the company, OF
were purchased by the company at sales
made by it on account of subscribers fail
ing or refusing to pay calls or assessments
made thereon.
The complaint continues:
Your orators are informed and believe
| and upon their information and belief say
that there were no individual subscriptions fol
| said capital stock on or after the 10Th day o
January, 1865, and before the 3lst day of De
| cember, 1869.
| In January, 1865, there were not more thar
| 1892 shares of the 100000 shares authorized
to be issued by amended articles held or owned
| by persons who actually subscribed therefor.
| 1t is believed thatunder the terms of the part
nership of Croker, Hopkins, Stanford, ct al
the estate of Stanford is liable for its oneourtt
| share of the claim.
| Your orators further say that the said part
| nership firms of Charles Crocker & Co. anC
| Charles Crocker completed and finished the
| work by them undertaken to be done for sale
| railroad company under their several contract.
| before the 31st of December, 1867, and tina
said railroad company, in performance of it
| obligations to said partnership firms, at vari
Gus times and from time to time as the worl
| progressed and after its completion, ISSUED
and delivered to the said Charles Crocker, fo
| himself and his said partners, LAT or shares
! and upward, of the capital stock of the sale
| Central Pacific Company of California of thu
par value of $14,7o1,710 % and upward.
The complaint then shows the increase
| in value of the stock while under the con
troll of the Croker opkins-Stanford com
| blnatlon, and after setting forth that al
the stock was held by these people, with
the exception of few shares turned owe
to servants and employees, the complain
| concludes:
Your orators further pray that their claim
| for SIS, 237 900 against the estate of said LIE
land Stanford be established, allowed ant
| adjudged and decreed to be a valid, existinl
| Indebtedness in favor of your orators agains
| said estate, and that the defendant be ordered
adjudged and decreed to pay the same out o
| the assets of the estate, in due course of admin
| istration, and prior to all other claims agains
| the said estate.
Your orators pray for general relief and fo
| costs.
| A copy of the complaint has been for
warded to Washington by Mr.. McKisick
The filing of the suit caused considerable
comment in the courts, and opinions were
freely expressed as to whether or not the
United States would win. ATTORNEY Nc
Kisick is firmly convinced that he will win
and is going into the trial of the case with
zeal and confidence. In the meantime the
attorneys on the other side are gettine
ready, and great legal contest is anticif
pated. 1t is not often that SIS, 000, 900 is the
prize for which attorneys contend.