The San Francisco Call. Newspaper, June 30, 1895, Page 24

- United States against the private fortnnes 24 P THE SAN FRANCISCO CALL, SUNDAY, JUNE 30, 1895. MRS, STANFORD WINS THE $15,000,000 SUIT Her Demurrer to the Government’s Bill Is Sustained. NO PERSONAL LIABILITY. Judge Ross Says the Pacific Railroad Debt Is Unlike Other Debts. THE CONSTITUTION OF 1849, No Further Action on the Part of the Federal Officlals Is Ex~ pected. No one was very much astonished yes- terday when it was announced that the demurrer to the Government’s complaint against the Stanford estate had been sus- tained by the United States Cireunit Court, though by this decision the case of the of the looters of the Central Pacific Rail- road is practically thrown out of court. Judge Erskine M. Ross wrote the de- cision, There are nearly 13,000 words in it, and its burden is that these railroad debts are not ordinary debts; that the law pre- scribes a certain manner in which they shall be satisfied; that private fortunes may not, therefore, be mulcted to pay them. “I told you so,” a great many people are eaying, and with much reason, for it did not require even the son of a prophet to foretell the outcome of a lawsuit wherein the whole people were complainants and the estates of four millionaires would have been defendants. 7 Judge Ross’ decision is a black eye for the Government. Naively he remarks, at the end of it, that “It is apparent no amendment of the bill can make good the complainant’s claim in this case.” . No amendment nor appeal on the part of the Government is expected. It is geaer- ally understood that the case of The United States of America vs. Jane L. Stanford, executrix of the last will of Leland Stan- ford, deceased, is at an end. It 'will go down_in history as a famous case, and Judge Ross’ decision, no doubt, will become a part of the common law of the land. The news will be agreeable to Mr. Huntington and to the heirs of the Crocker and the Hopkins estates. And if not satisfactory to all, it has certainly been a surprise to no one. Judge Ross begins his decision by citing the various statutes under which the Cen- tral and the Union Pacific railroad com- panies came into existence. Proceeding, then, to his reasons for sustaining the d murrer, the opinion says: “The only questions here are, What were the liabilities assumed by Btanford? and If he shall be The Only found to have assumed an in- ?uutiom dividual liability for the repay- JInvolved. ment of the bonds loaned by the United States to the railroad com- panies in which he was the holder of stock, whether the suit of the Government is barred by the lapse of time? “The Central Pacific Railroad Company of California, which was incorporated June 28, 1861, was organized and put into opera- tion prior to the passage by Congress of any of the Pacific railroad acts. Leland Stanford, C. P. Huntington, Mark Hop- kins and Charles Crocker were among its incorporators and each of them subscribed for 150 of the 85,000 shares into which the stock of that corporation was divided by its articles of incorporation. There were also other subscribers for its Incorporation stock—two for similar of the amounts as the four al- Southern Pacific. ready named, and still others in smaller amounts. The then existing laws of the Btate of California, under which the Cen- tral Pacific incor*wmted, were sections 31, 82 and 386 of article IV of the constitution of 1849, and the provisions of an act of the Legisiature of the State of California en- titled an act to provide for the incorpora- tion of railroad companies and the man- agement of the affairs thereof and other matters relating thereto, approved May 20, 1861 “Notwithstanding the urgent needs for such a road, it was not until July 1, 1862, that Congrese passed the first of what are known as the Pacific Railroad acts. The reasons which tinally The First moved it to action 1n the prem- Action of ises are very clearly and tersely Congress. stated by the Supreme Court in the case entitled United States vs. Union Pacific Railroad Company, 91 T. 8., 72. As said by the court in that case, many of the provisions in the original act of 1862 are outside of the usual course of legisla- tive action concerning grants to railroads, and cannot be properly construed without reference to the circumstances which ex- isted when it was passed. It wasenacted at & time when the very life of the nation was in peril, and in large measure in the inter- est of National safety. “Congress undertook to secure the building of the road. Itfound inexistence & California corporation called the Central Pacific Railroad Company, organized to build a railroad from Sacramento to the eastern boundary of the State, and it adopted that cosxépomtinn by the act it passed July 1, 1862, as one of its instru- ments in the undertaking. Birth of the By the same actit created Unian Pacific. acorporation and called it R. R. Company. theUnion Pacific Railroad Company, to build a line of railroad and telegraph from a point in the Territory of Nebraska to the western boundary of the Territory of Nevada, there to meet and connect with the line of the Central Pacific Railroad Company of Cali- fornia; and it also made provision for lviu-ions Eastern connections with the main ne. “The terms and conditions of those gnnu are to be ascertained a resort to the statute. The Contract aving been duly accepted _Cannot be by the railroad companies Broken Now. in question, they constitute . the contract between the respective parties, from which the companies cahnot depart, and which the Government cannot change or alter except in the mode reserved wfit by law. If, upon so elementary a propo- sition, authority is needed, it may be foupd in the decision in the Sinking Fund cases, 89 U. 8., 718-719, and in the %nion Pacitic R. R. Co. v. United States, 104 U. 8., 662. “‘Undoubtedly, the contract between the United States and the respective railroad companies, embodied in the statute of July 1, 1862, contemplated The Repayment the repayment by the Was Contemplated companies -to the by Congress. United States of the S amount of tne princi- al and interest of the bonds so loaned to hem. But how? Did the companies re- ceiving the benefit of the bonds thus issned 2nd delivered to them by the Government thereupon become indebted to the United States therefor in the ordinary sense of that term, to pay which all of their prop- erty of every character is liable, or was the obligation assumed by the companies for the repayment of the principal and inter- est of the bonds o issued and delivered to them to be performed in certain defined and speciffied ways? This question was not involved, and therefore not decided in any of the cases cited by counsel in which the Pacific railroad acts have been under con- No Personal - sideration by the Su- _Obligation to preme Court. It is di- Repay the Debt. rectly involved in the present case, forit is obvious that unless there was an absolute, unqualified promise to repay the bonds on the part of the cor- porations in which the deceased Stanford was a holder of stock, there was no per- sonal obligation on his part to repay them. “The statute embodying the contract to be construed was drawn with great care, yet it is not as explicit as it should have been. In express terms it contains no un- qualified, nor, indeed, any express coven- ant on the part of the corporation receiv- ing the bonds to repay them. If any such unqualified promise “exists, it is by impli- cation. But a covenant, 4 as held by the Supreme The Obligation Court in Hudson Canal to Pay Was Co. vs. Pennsylvania Coal Only Implied. Co., 8 Wall., 276, cannot be implied in the absence of language showing that it was intended. It was also there held that the fact that the non-impli- cation of it makes the contract. in conse- quence of events happening subse?u_engly to its being made, quite unilateral in its advantages, is not a sufficient ground to imlply a covenant which would tend to balance advantages thus preponderating. “The provision of the contract in respect to the repayment of the bonds was that they should be repaid Conditions Upon ‘as hereinafter provid- Which the Bonds ed,’ and to secure such Were Issued. repayment the issue and delivery of the bonds was by the contract made to consti- tute ipso facto a first mortgage on the whole line of railroad and telegraph. The contract further declared that all of the grants were made upon condition not only that the company would pay the bonds at maturity but also should keep the railroad and telegraph line in repair and use, and at all times transmit dis- patches over the telegraph line, and trans- port mails, troops and munitions of war, supplies and public stores, upon the rail- road for the Government, and that the Government should at all times bave the preference in the use of the same for all of those purposes; at fair and reasonable rates of compensation not to exceed the amounts paid by private parties for the same kind of service. And it was further provided that in case any company or companies accepting the pro- visions of the act should fail to comply with the termsand condi- tions thereof by not com- Congress Could pleting said line of rail- Appropriate road and telegraph and the Raulroad. branches within a reason- able time, or by not keeping the same in repair and use, Congress should have the right to pass an act to insure the speedy completion of the road and branches, or put the same in repair and use, and direct the income of the railroad and telegraph line to be thereafter devoted to the use of the United States. “In respect to the repayment to the United States of the amount of their bonds issued and loaned to the respective com- panies, to aid in the con- The Bonds Muy struction of their roads, Be Paid in together with the interest Governmental thereon, the contract Service. provided, in section 6 of the act of 1862, first, that all compensation for services rendered for the Government by the resFective compa- nies should be applied to the payment of | the bonds and interest until the whole amount should be fully paid; that the company may also pay the United States, wholl, bonds, treasury notes, or other evidences of debt against the United States, to be allowed at par, and that after the comple- tion of the road, until the bonds and inter- est are paid, at least five per centum of the net earnings of the road should also be annually applied to the payment thereof. “It is earnestly insisted on the part of the defendant that it was not the intention of the act to put upon the company receiving the bonds of the Gov- ernmentan absnlnte,ungnxlifled agreement to repay to the United States the amount of them, together with the interest thereon; that such an unqualified agreement would necessarily subject any and every road the companv might have to such repayment. “Because the Central Pacific Railroad Company of California and the Western Pacific Railroad Company, like all of the other railroad companies accepting the terms and provisions of the act of July 1, 1862, and receiving bonds of the United States thereunder, thereby assumed an absolute and unqualified promise to repay the amount of them to the United States, ;.ofiether with the interest thereon, does it o Not an_Absolute, Unqualified Agree- ment to Repay. low that the stockholders of the California corporations No Common named became person- Law Liability ally liable for the debt of Jor Such a Debt. those companies? Be- fond question there is no common law liability for such adebt. The individual liability of stockholders in a cor- poration for the payment of its debts is always a creature of statute. (Pollard vs. Bailev. 20 Wall., 520 “Both of the California corporations named were incorporated, as has been seen, under and by virtue of the provisions of the act of the Legisla- ture of California, ap- Individual Lia- roved May 20, 1861 (Cal. bility May Only Euts.. 1861, p. 607). At e Found in that time the provisions the California of the constitutien of Cali- ws. fornia in relation to the subject in hand were sections 32 and 36 of article IV of the constitution of 1849, already given in full. It is plain, there- fore, that whatever individual liability the stockholders of the Central Pacific Railroad Company of California and the Western Pacific Railroad Company incurred is to be found in those provisions of the consti- tution of 1849 and in thecprovisians of the act of the Legislature of California of May , 1861. “‘In 1864 the Supreme Court of California, in the case of French vs. Teschemaker, 24 Cal,, 510, fully considered and construed sections 32 and 36 of article IV of the con- stitution of 1849, and this construction of the constitution by the highest court in existence under it is binding on this court. Resort must, therefore, be had to the State statute to see what, if any, individual liability was thereby fastened on the stock- holders of the Central Pacific Railroad Com ‘gnnfi of California and the Western Pacific Railroad Company for their cor- porate debts and liabilities. “The two California corporations named were incorporated under the State act of May 20, 1861, in which it was declared that each stockholder should be ‘individually liable to the creditors of such company for his proportion’; tbat is to say, in propor- tion to the amount of stock by him beld, for all the debtsand liabilities of such com- pany, except those incurred after he should cease to be a stockholder. ‘It is manifest that the declaration that the stockholder is liable The Old State for all of the debts and Law Was liabilities of the corpor- Uncertain and ation ‘in proportion to Weak. the amount of stock by him held,’ does not estab- lish any rule by which any definite lia- bility can be fixed. And it ismanifest that the State laws fixing the liability of stock- bolders, passed subsequent to the making of the contract which is the basis of the present suit, have no application to the questions here involved. ‘‘At the time, therefore, that the Central Pacific Railroad Company of California and the Western Pacific Railroad Company ac- No Definite cepted the provisions Liability Then of the act of Congress Existed for of July1, 1862, upon Corporate which acceptance the Indebtedness. contract between them and the United States arose, the laws of the Btate under which those companies were incorporated had not fixed upon the stockholders of such corporations any definite individual liability for the corpor- ate debts, or prescribed any rule by which any such definite individual liability conld be ascertained. With res to contracts then made, the corporations in question, therefore, stood as if there had been no constitutional or eummfiv ggrovhiom in abi) relation to the individual lity of stock- holders for corporate debts and [iabilities; for it is plain that a constitutional provis- N y or in part,in the same or other | THIS IS NOT A FOURTH-0 GOODS. NEW TO-DAY—DRY F-JULY ADVERTISEMENT-- = Fanfrom it ; but it is an announcement that should appeal to every patriotic man or woman in California—not only for our stores, but for ALL. STORES THAT HANDLE GOODS OF AMERICAN MANUFACTURE. American productions are equal and many times are superior to foreign goods that sell at the same prices. Why then do you buy foreign goods when it is possible to get American articles at tBe same prices, or less, and send your money abroad ? | No idle mills. No idle work= men. American manufactures for the American people. Prosperity assured by fostering home indus- tries. American Silks. Many fashionable ladies would feel very badly, no doubt, if they knew that tHe lovely Silk Dress they are 80 proud of was woven In Patter- son, New Jersey, instead of Lyons. France. But that feeling should not exist, for on certain grades of Silks— say, from 75¢ to 83 a yard — the American goods are the best in every particular—quality, pattern and dye. Here are some Superb American Silks cheaper and better than any imported at same prices. BLACK GROS GRAIN, extraheavy, pure dye, 20 inches wide, supe: Tior to the §1 fmported article.... BLACK FAILLE SILK, 23 inches, all silk and beautiful bright finish, not equaled by any foreign pri duction as the price... BLACK - RHADAME SILK. 2131.25 inches wide, a very superior qual-D L — ity, and a spectal value at..... y ar BLACK SATIN DUCHESS anue gb]. 50 nally heavy, very lustrous finishe]) L'— and every yard guaranteed.. BLACK SATIN LUXOR, 21 inches wide, 8 superbly made and fin-@a. 75 fshed dress, silk that we can == highly recommend. ... ... Yard AMERICAN PRINTED STLKS, 24 inches wide, pretty patterns, mar- vels of the fabric_ printers’ inge- nulty, a regular $1 grade for...... FANCY JACQUARD SILKS, 19 inches wide, beautiful two-toned effects, all new designs, lLieav; 75° Yard Yard Yard 75° Yard 75| Yard FANCY § 0 beauti Only American goods displayed this week. American Curtains. We don’t Liare to go to England for Nottingham Curtains. In Wilkes- barre and Columbia, Pa., and in oth- er Eastern cities are produced two- thirds of the Nottinghams used in the United States. American made Nottingham Lace Curtains eost. American made Portieres, Table- Covers, Scrims, Curtainettes, Tapes- tries, etc., etc., in this department. American Muslins. ‘We take especial pride in our Amer- jcan made Muslins and Sheetings on which we are never undersold. Here are two values to set you thinking: 42inch UNBLEACHED MUSLIN, an 710 extra_heavy, strong thread, néver 2 8014 elsewhere under 10c, but we say Yard 45-inch BLEACHED MUSLIN, fine Q1C thread, soft finish, full yard and quar- O3, ter wide, valued at 12%c, price...... Yard American Wash Fabrics Of course we have to keep in stock full lines of imported wash fabrics, but we can honestly say that for del. icacy of coloring and loveliness of atterns none of the old country eauties approach, for the price, the .51““; ' taining country. Almost every= thing that her citizens require, even to many of the most expensive luxuries, is produced within her boundaries. Many of our manufac= tures are literally ‘“on top of the heap”’—excelled by none—yet there exists a prejudice in favor of foreign= made goods. This prejudice, how= ever, is being slowiy but surely overcome by the real merits of American productions. To foster this true feeling of pa=~ triotism, that American products are ‘good enough for Americans—to in- troduce to the particular notice of our patrons some of the best grades of American goods, and to prove to them that they can save money by buying them, we have decided to devote one entire week to an exposi= tion of American manufactures. This is *“American Week ’’ at Hale’s, and none but American goods will be displayed. ‘¢ Old Glory ’’ waves from every available place in our store. Don’t miss the show. AMER!CA is to-day a self-sus- e American Corsets. made Corset. Get good American makes, and they equal in beauty and wearing qualities_the high-priced French patterns. We will fit you at store and guarantee satisfaction if | you will permit us. We can_ confi- dently recommend the make known as Hale’s Kid Fitting. HALE'S KID-FITTING CORSETS, coverad with, fine black satéen @] .00 und boned with real bone, are pLl— only .. Each HALE'S KID-FITTING CORSETS, short length and long walat, Cov 8 ] .50 ered with fine black sateen and o boned with horn bone . Each HALE'S KID-FITTING CORSETS, extra long walst, fine black sateen covered, colored silk stitched. em- broidery top, boned with horn bone. . P 1:30 Each e P. D. Warner's, , K. and G., Jackson and Ferris Waists; otc. American §wing Silks One of the most interesting feat- ures of our store display during American week will be the warship made entirely of spool silk, which Carlson, Currier & Co., the Califor- nia silk manufacturers, exhibited at the World’s Fair. We carry this high rade of American silk exclusively t is not m{ n American produc but a local § 4 being made at Peta- luma, Califérnia. Muslin Underwear. American goods, American work- manship. The features of thekind we | _Mould your form in an American- | The store is profusely decorated inside and out. | The Stars and Stripes cannot occupy a more exalted pesition than when [ending their glory to an exposition of the manufac= tures of the/land. American Hosiery. Yes, the Germans don’t quite sup- Py the wholo world with foof cop- erings. There are some exceedingly fine Stockings made right here in America, nnfi we have found these three gradeq to be among the most popular we have ever sold. BOYS' FAST-BLACK HOSE, wide, heavy rib, very he; made dou- y be made lities 25° Pair ouble heels, toes and soley; ladich tell us It Is the best: ~ EO wearing stheking we ever sold at the price., LA Pair LADIES' TA} HOSE—Compare the different stades of color with Ger- man goods and see If America can't_produce fine hosiery, prop- erly dyed. . g o Men’s Fixings, | Made in America, and there are no better for the money made any- where else. Foreign goods same | grade cosi 25 to 50 per cent more. For instance, see these pric: ~ Underwear. MERTNO & #7s AND DRAWERS. ..., | 5B o4 5S¢ and 50c ‘ WOOL MIXED SHIR J £ R 333° Palr se ND DRAWERS.. #1.00 to $2.50 Each ¥ ALLV Sox. wide, two-toned effects, in .00 | mew American wash fabric, Jaconet | carry are: Good material, in liberal Tkcotor compinations trom 31259 120 | Duchess. We have quantities; good trimmings; 10 | yppinvo American made.1214 to 50 Pair reduced to.... SEeygn YA 3 | Dotch sewing, and pretty styles. | COTTONAmerican made. i 1o Dos pair AMERICAN PRINTED WARP, e g (/ e T WOOL, American made.....23¢ to 50c Pair G ok, D SDEN TAR.$1-°° | A inioeerionmt cmaroitey @EC | N FETA SILK, 20 inches, one ofdL'— | , \iiiG 3 HA INCORPORATE | Ens b el (e White Shirts the fads of the season... -~ Yard £ L o (INCORPORATED] | LA . AMERICAN CORDED GINGH A sleeve ... %D | Made of Best Shirting Muslin BLACK BROCADED SILK, 22 POLKA SORRENTO, & new member = [ 1arge; TACEAIants mallopanan: <ail ‘inches wide, a beautiful brocaded of the S family in great de- LADIES' GOWNS, heavy muslin, V- large, liberal cut, well sewed, al gros graln, in the large scroll de- 25¢ 9 7 9 9 941 Mal‘ket treet shaped neck, tucked and open ‘ linen bosoms, re-enforced back and signs which have been designed l.oo L 2140 ] s ) embroldered yoke, neck and 750 | for fall wear; we have them twoqD L' — | " And dozens of other entiol, in this 7 sleeves tucked, and trimmed (O | ERED...50c, 75¢, 81, $1.25 months ahead of the season...... Yard | distinciively American departments. SAN FRANCISCO. TufHed embIOIdErY «evvererreenes Each | D....75¢, 81, $1.25, $1.50 000000 ion requiring legislation to give it effect is, | fits conferred by the act. This was | fessor George Davidson, Nathan Frank, | seum and make it a counterpart of that | capitsl sentence can be carried out. If, until such legislation is had, ineffectual, | promptly done the Central Pacific | Thomas I. Bergin, William 8. Herrin, M. | splendid Grecian temple. | however, the calprit persists in protesting and that a statute which is too indefinite to give a reasonable and practicable opera- tion to the constitutional provision is as if it had not been enacted. “The whole scope and tenor of the leg- islation, constituting the contract under Personal Liabilit, which the line of XNot Contemplatcs raiiroad and tele- Congress. graph was construct- ed, in consideration of which the bonds in uestion were issued and loaned to the 3entml Pacific Railroad Company of Cali- fornia and the Western Pacific Railroad Company respectively, unmistakably show that no 1pel'soml liability of the individual stockholders was contemplated, cither by the United States on the one side, or the railroad companies and their stockholders on the other side. “‘Wherever, in its undertaking to secure the building of the road and its connec- tions, Congress granted aid, whether in rights of way, station grounds, lands or bonds, to any railroad company, it granted it upon precisely the same terms and con- ditions that it granted similar aid to the other companies mentioned in the act. Each and every company to which aid was extended was put, in respect to such aid, upon exactly the same footing. If there is anything clear in the provisions of the statute upon the subject, it is this fact. ““True, the Central Pacific Railroad Com- pany and the Western Pacific Railroad Company were incorporated under and by virtue of the laws of California; but Con- Freu. in and by its e, Congress Adopted islation, adopted the Ronds as th%m as instru- Instruments. ments in. the execu- tion of its purpose to secure the construction of the road the country needed, and conferred upon them certain powers, rish(.s. privileges and im- munities independent of and wholly apart from those derived from their State char- ters. Whether or not the State of Califor- nia could have objected to that action of COongress it is not important to inquire. So far from objezting, the State assented thereto, and as far as it could, ratified and confirmed the action of Congress in the premises. (Cal. Stats. 1863-64, p.471; Sink- ing Fund cases, 9 U. 8., 728.) “In the case last cited the Supreme Court, in speaking of the California char- ter of the Central Pacific Railroaa Com- pany of California, said that no power was thereby granted to build any road outside the State, orin the State, except between the termini named, but that by the act of 1862 Congress granted this corporation the right to build a road from San Francisco, or the navigable waters of the Sacramento River, to the eastern boundary of the State, ' and from there through the The Railroads Accepted the Territories of the United States until Federal Conditions, it met the road of the Union Pacific Company. For this purpose all the rights, privilezes and franchises were given this company that were granted the Union Pacific Company, except the franchise of being a corpora- tion, and such others as were merely inci- dent to the organization of the company. The Jand grants and subsidy bonds to this company were the same _in character and a;xmdty as those to the Uniop Pacific, and e same right of amendment was reserved. Each of the companies was required to in the Department of the Interior its ceptance of the conditions imposed, bc- fore it could become entitled to the bene- il ac?| B Company, and in this way that corporation voluntarily submitted itself to such legis- lative controt by Congress as was reserved under the power of amendment. (99 U. 8. 727-8.) “The theory %pon which the decision of the Supreme ourt in the sinking-fund cases proceeds, in so far as concerns the two California corporations, is that to the extent of the powers, rights, privileges and immunities granted them by onfress they are to be regarded as the No Individnal creatures of Congress and . Liability in precisely the same in the Absence light as the Union Pacific of Such Company. The logic of 'rovision. this is that the contract in respect to the subsidy bonds was precisely the same with the California corporations that it was with the Union Pacific Company and to be measured by the same standard. The act of Congress embodying the contract in re- spect to each of the corporations not hav- ing provided for any individual liability on the snrt of their stockholders none can be held to. exist. (Pollard vs. Bailey, supra; Carroll vs. Green, 92 U. 8., 512.) 'Had the provisions of the act of July 1, 1862, remained unchanged and the ro: been built solely thereander the Goyern- ment, with the retention of all compensa- tion for-services rendered for it by the com‘)mle! and 5 per centum of their net earnings and a first mortgage on the entire aided road, with its appurtenances, would undoubtedly have been sure of the repay- ment of the bonds as provided in and by the act. But tospeed the enterprise and The United States Wasived Its First to further aid in the construction of the Lien on the Roads. roads, Congress passed the act of July 2, 1864, by which, as has been seen, the grant of lands was doubled, a provision inserted that only one- half of the compensation rendered by the railroad companies for the Government should be required to be applied to the payment of the bonds issued by the Gov- ernment, and by which the United States waived their first lien for the repayment of the amount of its bonds, with interest, and consented that the railroad companies to which the grants applied should issue their own.bonds in like amounts, which should be secured by a lien on their respective roads paramount to the lien of the United States. While this generosity on_the part ofthe Government clearly entitled it to the utmost good faith on the part of the rail- road companies in all their dealings with the United Statee it cannot justify the court in departing from the true interpre- tation of the contract as the parties them- selves made it. “The views that have been expressed render it unnecessary to consider other questions urfued by Unnecessary to counsel; and if they are Consider Other sound,of which I have Questions. no doubt, it is apparent that po amendment of the bill can make good the complainants’ claim in this case. Nevertheless, leave will be given the complainants to amend, if thev shall be so advised.” The courtroom was crowded with attor- neys and others anxious to hear Judge Ross’ decision. Among those present were: Ex-Chief Justice Curry, Harvey Brown, Thomas Shackelford, W. Spaulding, ex-United Stgtes Marshal Long, United tates Commisioner Heacock, Assistant United States District Attorneys Knight and Schlessinger, Frank 8. Monxtou, 0~ ~ Outhwaite of Stanford University, W. Beasley, ex-Judge Spencer of San Jose, Mountford Wilson, George K. Fitch, R. Percy Wright, Joseph Na&hmly, M. Fried- enrich, Duncan Hayne, W. W. Harrison, ex-Senator Carpenter, ex-Judge Finn, Sur- veyor of the Port William D. English, ex- Postmaster Bryan, W. S. Smith, Southard Hoffman, Charles Lovett, Professor Hark- ness, ex-Judge Hittell, William 8. Wood, ex-Judge Myrick, William T. Baggett, ‘Willis G. Witter, ex-Justice Thornton and J. T. Grey. ‘[t is hard to say what will be done in the circumstances,” said L. D. McKisick, special counsel for the Government, when spoken to on the subject. ‘“‘One thing is certain, we are not through with the case, but just where the complaint will be amended I cannot say until after a careful | survey of the situation. The first point to be settled in the amended complaint will be, ‘Had Congress the power under the con- stitution to pass an act holding the stock- holders of the Central Pacific or any other similarly situated railroad individually responsible?’ If Congress had that power then the question arises,”‘What was its intention in regard to the Central Pacific?’ Those are the new points that strike me just now, but I will not take any action Jjust at present.” s e MRS. STANFORD’S PLANS. President Jordan States That She WIill Turn Over the Palo Alto Estate. STANFORD UNIVERSITY, June 29.— Soon after the news of Judge Ross’ decision reached the university the flag was hoisted on the mast pole and the li community abandoned itself to rej President David Starr Jordan said : I regard the decision of Judge Ross as final. It is hardly probable that it will be reversed. The decision affects the policy of the university only sofer asit_enables us to:carry out plans heretofore published. The present aim is to limit the atiendance to 1100 or 1200 students, to equip the institution with the ablest pro- fessors and the best facilities to be obufiud anywhere, and to make the university as good as any in the world. Mrs. Stanford pmi)oseu 10 rl,n the estate at the disposal of the university just as soon as the courts will allow her. When this is done we will turn our attention to library extension and classroom expansion; we will increase the laboratory facilties and make additions to the faculty. The decision will have the effect of in- creasing the proportion of Eastern stu- dents, which element has naturally been reluctant about coming West while the shadow of the Government claim hung over the university. No effort, however, will or ever has been made by the faculty to solicit student patronage from any sec- tion of the country; the university has al- ways been taxed to its utmost capacity to accommodate the hundreds who flocked here of their own voluntary choice. Presi- dent Jordan says: The number of applicants will, no doubt, be h,r&:ly Increased, but the limit must remain at 1200." We don’t want an army. We prefer a smaller number, well organized snd well equipped. Among the first improvements to be madeon the campus as soon as adequate means are provided will be the erection of a library building. It has been proposed to build"this structure opposite the mu- e At Palo Alto. PALO ALTO, CaL., June 29.—The de- cision of Judge Ross is a boom for Palo Alto. The news was wired hereat1:30 P. M., and two hours later the town was aflash with flags and bunting. The fate of | the town hangs upon the permanence of the university; for months past business men have realized this and have waited | patiently for the final result. Business | transactions of all kind have been made contingent upon the decision of the court. | Now that the strain is removed, and a fa- | yorable result obtained, the community breathcs new life. Numerous buildings, heretofore on paper, will now be trans- formed into brick, mortar and wood, and every business in the town be boomed. LADY FORESTERS. Dr. Hull, the Circle Physician, Sues a Circle for =& Small Bill. Leonard C. Hull, M.D., was plaintift in a suit tried before Justice of the Peace Groezinger yesterday against Paragon Circle No. 151, Companions of the Forest. “The Companions of the Forest” is a mutual medical aid society, so to speak, its members being treated in case of sick- ness in consideration of dues paid, and Hull was the physician in the case. Itis this circle that suffered a disruption a short time ago, in which J. G. Chase was a principal figure, when some twenty mem- bers walked out, carrying with them the books and papersof the organization. These formed ano&er circle. ~Some eighteen other members, however, still composed Circle 151, and among them was Emily Moore, the treasurer. She cluag to the treasury, and the com- panions who bolted brought suit uiainst her for embezzlement, which_suit, when it came on to be heard, Judge Joachimsen promptly threw out of court. Dr. Hull, who appears to have been one of the disaffected members, brought suit against the circle to recover $12 claimed to be due. Judge Groezinger took the matter under advisement, and then went fishing for a month. SRS S S Special Baggage Notice. Round-trip transfer tickets on sale at re duced rates at our office oNLY. One trunk, vound trip, 50 cents; single trip, 35 cents. Morton Special Delivery. 31 Geary street, 408 Taylor street and Oakland ferry depot.* —————— . When sound can fo in_oniy one direc- tion it travels far. An old well at Caris- brook Castle, Isle of Wight, is 182 feet deep. On a still day a pin can be heard to strike the water. P ————— The California Fireworks Co., 219 Front st., are retailing assorted cases home made fireworks specially selected for family use. ———— The Bruederhoef Mennonite church claims five societies, with 352 members. ——————— THERE 15 an article on the market seldom equaled and never exceiled—Jesse Moore Whis- ky. Moore, Hunt & Co. guarantee its purity. * —————————— A curious point in Swedish criminal law is that cos ion is necessary before a his_innocence in the face of overpowering evidence, the prison discipline is made extremely strict and severe until the de- sired coniession 1s obtained. IREWORRS! 1370 Market Street, NEAR CITY HALL AVENUE. AMERICAN AND CHINESE FIREWORKS, FLAGS AND DECORATIONS. SEE OUR [$1, $250 AND $5 ASSORTED CASES. BIG VALUE. FIRECRACKERS CHEAPER THAN EVER. W. W. TOPPING. Each and every pair of Royal Worcesfer Corsets have the full pame stamped inside on the linen tape at the waist. If the ful} name is not thers they are not geunine Royal Worcesters. The pl to buy them is at the fitting-rooms, 10 uurx l:a up stairs, corner of Kearny, where they are fitt free. We can fit any form at any price and war- rant every pair. If you have Dot worn them you should try a pair. CHESTER F. WRIGHT, 10 Geary st., cor. Kearny. Interlor merchants please address wholesale rooms, 35 New Montgomery st., San Francisco. THIS WEEK ONLY! 500 CAPES, 200 SILK WAISTS, AT HALF-PRICE. ARMAND CAILLHATU, 46-48 GEARY STREET, 0 Corner Grant Avenue. '