| Show amm NOT HOT LIABLE K I 1 r 1 bc decision i is ion in the 1 fifteen mil tion ion dollar suit I 1 I 1 I 1 AGAINST THE government circuit judge jude items boss says the govern I 1 i anent totne can talt antee aa possession of the nond but nover intended to make the stockholders for the tha debt builders weis practically agents of the th united states nn ail francisco juno june 23 3 Ural united ted states stales circuit judge ross hwi today to day rendered his decision on tile the demurrer of mrs jane li it S stanford tall ford against the suit milt a ot the he government to recover front aliar ot of her lue lato husband leland stanford the demurrer wrap wan Auit mined audze I 1 lorg allowed the to amend ha onn r complaint plit lill und real gue the lilt aw antic if it rao u do dc aired altas lt as itce ho holever hout mever vcr that this thin aul i wi evl affect the came raae tile lar jair is fis conje cons by judge Hos Rs snot not favoring the lip cast of 0 tile the united unite d states tho the sustaining ning olllie odthe de demorier iau wix 4 a surprise attorneys generally expecting alcon lt decision the court couil began by ail ex the acts arid and statutes both state and federal which pad iad navy ambear bearing on the of the th central pacific adalat its branches AM all railroad rall roada of the river were lie li isaid eBald cornila lacteal under the balna tain net so if one road was waa llamo to the he nt all of 0 them hem were lla Is we be In Int nearly all a 0 the thu corporations corpora lions stanford wals a stockholder togo Toe theether cher ether 1 walh till q r P huntington and the ih other in n lie shares of 0 tile stock the government ament according to 16 its HH contract alt bonds to aid in fit the of 0 this road though the road roada mm a built under abut contract it was wn va nde etie lanso the lie state 1 it became in aa u way actionable to the laii ot of california 1 OF the lam ilof california that stockholders of corpor atlonia are re individually Vi responsible for debts co contracted by their q he aru did not affect mr stanford as the government claimed for the reason that ohp aba stock holder liability acts acta were parsed lias bcd after the he government hal had made it itaf contract with the central pacific Oct af thole laws lawa had been before the th government brand tat the holover ho mover it would tart tasi the tha had aad no intention of inal in x ole t i billj J adt ddt bonded v fur vv the debts contracted intile the central pacific the court continues had something of a national tone lone to a it when it was contemplated the he country was in it a state of turmoil tun noll the government wanted quick communication between the atlantic avid and pacific oceans oceana at t that time the building of the railroad was waa a great undertaking an under taking too vast for private enterprise ler ter p prise r yo so the ille government in order to 1 I 1 in n the work woric 14 sued issued bonds bond s and lit in this way made the railroad bull builders ders practically agents of the united states it atvas very plain that jn in case the railroad did not pay the bonds upon ma cuilty that tile the secretary of at the treasury has the power to take possession of the roads the bonds are identical with a first mortgage mort AN IMPLIED PROMISE did the company who became indebted to tile the united states promise to repay the money asked the court the statute on this point Is not very explicit which filch Is to be regretted sold said the judge judee A promise la Is only implied there them was no explicit or unqualified between the corporation an and 1 I the the government it Is to be observed that the lands ends and bonds were not to bo be delivered to clip company until the road watt was equipped here Is found at 11 but la in it an unqualified prom lao at to lepay the monc money moncy Y the government had bad no intention of oc making the these men individually cespon pon hie said judge jude ross ROBS that question never entered into clio he contract act tire covenant did riot not stipulate that the should repay the bonds the tha accepted the assist once of the government with fill the agreement that they should hould pay tor for it that was all in accepting them of 0 course i it was believed that they would repay them the question quest lun remains however whether the liability tested with the stockholders there are no eo cori amon imon law liabilities the state law fixes the liability ot of stockholders lit in proportion to the amount of stock they 1 assess that law ho w over cannot connot be lie ld to apply in this care ai a 4 i it was passed aubee quent to the makar mak nr rr of the bovein input contract with the central Cen pacific company tire the real leal question involved Is whether there wis was a ren contract tract between defendant mad and plaintiff arid and whether there was it a liability proviso to tile hie pro in the lav lam n of the united states tt luiere re can br be found no such the minutes do not hot hold tile the defendants liable there Is absolutely lut ly nothing to h till thin fan fact and I 1 alra tile demurrer all and ki kive V tile plaintiff canner to arrie amend arrieux ud voil cl d c cd d judge ross itoi |
