The San Francisco Call. Newspaper, September 17, 1895, Page 1

VOLUME LXXVII.—N 0. 109. THE STANFORD CASE: Jgdge McKisick Begins | a Carefully Prepared Argument. A LINE OF AUTHORITIES. Attorney Garber and His Asso- ‘ ciates Closely Follow | place any limitations on it as to time. | really cannot say how long I shall require | to present my case.” the Speaker. MRS. STANFORD NOT PRESENT. The History of the Case Carefully | the estate of Leland Stanford as Gone Over by Counsel-To Be Resumed To-Day. The attorneys for the United States began their pleadings yesterday before the United States Court of Appeals for the re- versal of the lower court in the now famous claim against the estate of Leland Stanford. The claim is for §15 000, the propor- tion of the entire indebtedness of $60,000,- 000 based upon Leland Stanford’s propor- tionate ownership of the stock of the Cen- tral and e Western Pacific railroad com- panies, nc vent. At 11 o'clock yesterday morning United | States Circuit Judge Gilbert of Oregon, F. D. Monckton, Clerk of the Court. Hawley of Nevada and Morrow of , arrayed in the black robes of the Court of Appeals, filed into the courtroom and took their places on the bench, the gathering of lawyers and interested lookers-on rising to their feet until the court was, by the crier, formally declared ¥ dge L. D. McKisick, who was to make . argument for the United States, the ime arranging his papers and books. TUnited States District Attorney Foote, his associate, came and sat with him, Judge Spencer and Russell Wilson; for | dividual liability Mr: end of the counsel table and quietly waited the booming of the bigguns from the opposition. convened. se McKisick began his argu- Garber rose and retired to the of the room near the steam urt was | began the re! | upon condition. ppellant, had been in his place for some | alleged in the bill.” Stanford, took positions at the other | may be prescribed by law. scattered through the big, chilly and half lighted room, in and out side the rail. | This was the meager audience before | which the argument in the highest court of one of the most important cases that | has ever been tried in California was begun. | Mrs. Stanford, contrary to expectation,was not there. Judge Hawley called the case immedi- ately and Judge McKisick rose with a large book of about 200 pages in his hand, | ing that he had prepared and printed | his argument which he would proceed to | read to the court. “How long will you require for your argument ?” inquired Justice Gilbert. “Thisis a case involving a very impor- tant principle and a very large sum of money,” said Judge McKisick, “and I would respectfully ask the court not to I ented and Judge McKisick ation of the story of the case; how on the 15th of March the United States filed a bill in the court below to The court establ a claim for $15,237,000 against a stock- holder of the tral Pacific Railroad Company being 1dually liable as sach | stockholder for the indebtedness of the company to the Government. The respondent filed one general and five special demurrers to the whole bill. The Circ Court sustained the general demurrer without giving any considera- tion to the others. The complainant de- clined to amend and the court entered a decree dismissing the bill. “Counsel for respondent made an elab- orate argument in support of his conten- tion that there was was no personal obliga- tion on the part of the corporations to pay the debt for the reason thatthe grants were | “The court below decided the point | | against him. He next contended that if mistaken as to his first point, the stock- holders of the Central Pacific Railroad | | Company of California were not liable, for the reason that the corporation, in build- | ing its road east of the State line of Cali- | fornia, proceded ultra vires, and conse- | quently the stockholders were not liable. The court did not decide the point. But | | if there is anything in the point, it could | not have sustained the demurrer, as the | Western Pacific lies entirely within the | | State, and the demurrer, going to the | whole bill, is too broad, and must, for that reason alone, be overruled.” ‘With regard to the statute of limitations, | which the other side had urged in its argu- | | ment, Judge McKisick said the court | below did not consider the point. He next recited the assignments of error | | filed in the court below. * On this ap- | | peal,” he said, *‘the whole case is open in | this court, just as it was in the Circuit | | Court. There are no presumptions in [ favor of the decree. The case must be | | argued here de novo. If the complainants | | are entitled to any relief on the facts al- | leged 1n the bill and admitted by the de- murrer, the decree must be reversed; if they are entitled to no relief, the decree | | may be affirmed without regard to the reasons assigned by the Circuit Judge in | | support of his decision.”” | The * theory of the Circuit Judge” was | then presented at length and authorities | quoted on the technical question as to the | potency of the demurrers, and then the main contention entered upon ‘‘ whether or not the complainants were entitled to | any relief under the constitution and laws of the State of California upon the facts | | “It is to be noticed,” he said, “that in | | section 32 of the constitution dues from corporations shall be secured by such in-’| of the corporators as | Nota word | about stockholders in that section; while | section 36 the constitution declares in | | Judge Garber, the leading | positive and emphatic terms that each | insel for the widow, came in just as stockholder shall be individually and per- | sonally liable for his proportion. hen I come to discuss the case of French Teschemaker, referred to in the | ninth assignment, the reason for the | A — Apologies to E. A. Poe. Shall this great and beauteous trophy Ne’er return to England’s shore ? Quoth Dun - Raven, ‘‘Nevermore!” [Reproduced from anm original sketch by F. A. Nankivell.] WILL TIE UP TRAINS. Injustice of Proposed Southern Pacific Action. TRAFFIC ON THE U. P. Withdrawal of Certain Trains to Cause Hardship to Eastern Roads. SOME OF THEM TO BE HIT HARD. | Chicago, Burlington and Quincy and | Union Pacific Men Protest Agalnst the Handlicap. OMAHA, NeBr., Sept. 16.—If the Cen- tral Pacific Railroad persists in its deter- mination to abandon some of its impor- tant passenger trains between Ogden and San Francisco the change will affect the THE THREE ROBED JUDGES ON THE BENCH IN THE HEARING OF ARGUMENT IN THE STAN- FORD CASE. Sketched in court yesterday by a “Call™ artist. 3 'y by heater, where it is not likely he could hear a word that was said, but where he as- sum-~d a very attentive and interested at- titude. Within a few minutes of the noon adjournment he came forward, held a short discussion with his associates and left room, throwing a glance at Judge McKisick as he passed through the door, as if doubting whether it was safe to get out of earshot of him. During the afternoon session Judge Garber sat at the counsel table with his associates, making frequent notes as Judge McKisick, in an even, quick tone, read his printed argument and occasion- ally delved into the few books at his side to support its statements. The audience was small. Ex-Chief Jus- tice Curry took a seat well round by the end of the bench. the reporters'gtable, but remained only o 4 hear the formal opening of the argument. Crittenden Thornton came in a little be- fore noon and took a seat by the railing, There was a sprinkling ¢f young attorneys Joe Redding sat near | 1 change from corporators to stockholders, |in two sections, will be made manifest, | “ and that the distinction was clearly neces- | sary.” | Quoting section 12 of the act providing for | | incorporation of the railroads, he said: “It is perfectly clear and absolutely cer- tain that the Legislature in that section in- | tended to do four things: “First—To comply with and to obey section 36 of article IVof the constitution by making each stockholder individually liable for his proportion of the debts and liabilities of the corporation. “S8econd—To authorize a creditor of the | corporation to sue the stockholders ina | court of justice to enforce that liability. *Third—To authorize a stockholder who | | had paid a corporate debt to sue the cor- | | poration for his indemnity. | | “Fourth—To authorize a stockholder | who had paid more than his proportion of =Continued on Fifth Page. | at Ogden eleven hours. passenger business on all lines between Chicago and Ogden. The Chicago, Bur- lington and Quincy ana the Rock Island will be handicapped on coast business quite as much if not more than will the Union Pacific. Those Chicago roads make direct connections with the Denver and Rio Grande Western trains for Ogden and the coust. 1t is not proposed by the Central Pacific | to abandon its trains which connect with the Union Pacific overland flyer, but the trains to be taken off now connect with the Denver and Rio Grande first-class trains and the Union Pacitic slow train reaching Ogden at2:40 p. M. Should the Central Pacific abandon the trains, as is supposed, coast business from Chicago via the “Q” and Rock Island and ‘Union Pacific slow trains would have to lie 6ver 1t is against this damaging handicap that officials of the Chicago. ‘Burlington and Quincy and Union Pacific roads are now vehemently protesting. J. A. Fillmore, general superintendent of the Central Pacific, recently addressed a | letter to the high officials of Eastern con- nections to the effect that in all probabil- ity the trains stated would be abandoned in November. The managers of the Bur- lington and Union Pacific have filed vig- orous protests against the proposed aban- donment, and it is stated that the Rock Island has also joined the protest, and it is hoped in railroad circles in Omaha that the Central Pacific may yet be induced to continue its trains. “Itis not regarded as certain that the Central Pacific will abandon its passenger trains in November,”’ said an official of the Union Pacific high in authority, to-day. “Yet the foi'hern Pacific has just an- nounced a new'and magnificent through Pullman train to run on its Southern line, designed to take the business that would naturally take ite Central Pacific trainsas trains now run. The Denver and Rio Grande Western and its Eastern connec- | tions, the Rock Island and the Burlington, will be harder hit than will the Union Pa- cific. The trains out of Chicago will have to start eleven hours sooner than the | Northwestern train, connecting with our | fiyer at Omaha in order to make direct connections at Ogden. The proposed change will notaffect freight business.” AY ‘TURN THE TABLES, | Probably That the Defender May Be Sent to British Waters. Several Valuable Trophies Across the Pond That American Yachtsmen Covet. NEW YORK, N. Y., Sept. 16.—There is a general and strong-growing sentiment among yachtsmen and sporfsmen gener- ally that now is the time to turn the tables on the Britishers in good earnest, in European waters next year to bring a to regain the Brenton Reef cup, the sole American trophy now held on the other side. There are several trophies of various degrees of value and importance for which the Defender might compete on the other side. First of all in the season comes the racing at the Mediterranean regattas, which are held early in the spring, In addition to the regular prizes in the regattas at Cannes and Nice there are handsome trophies given by James Gordon Bennett and Ogden Goelet, which were won last spring by A. B. Walker's Ailsa. There is also the Nice cup, valued at $1000, which was last won by the Prince of Wales’ Britannia. In England almost every yacht club has a challenge trophy and several has Queen’s cups. The most valusble of all is probably the gold challenge cup of the Royal Victoria Yacht Club, said to be worth $5000. Besides this the Royal Yacht Squadron, the Royal St. George Yacht Club and the Royal Forth Yacht clubs offer Queen’s cups, and the values of the various challenge cups range from $50 to $1000. 'f the Defender were as suc- cessful in a season’s racing on the other side as she has been here she would bring back a rare assortment of prizes. The question of the Defender’s future is, therefore, a very important one, and the popular interest in it has given rise to several rumors within the last few days. -One, to the effect that W. K. Vanderbilt, the larger owner of the boat, had purchased the shares of his associates—C, Oliver Iselin and E. D. Morgan—and would fake her abroad next spring to spend the season in racing over there, was denied by both Messrs. Iselin and Vanderbilt yesterday, the former stating that the owners of the boat had not yet made any plans for her future. What they might do. he said, was another ques- tion and is yet entirely open, o it is easily within the bounds of possxlnmg that the American champion may continue her racing career next season. g s Escape of Five Murderers. RALEIGH, N. C., Sept. 16. — Gov- ernor Carr has been advised of the escape of five murderers from the jail at Madison and offers a reward for their capture, and by sending the Defender over to race i few foreign cups to this shore, as well as | | ARMY OF TENNESSEE Colonel Fred Grant at the Session of the Society. TALKED TO VETERANS. Love for the Men Who Fol- lowed His Fafher in the ' Great Civil War. NOBLE WORK OF THE SOLDIERS. Missing Chapters In the Memoirs of the Great General Related In Detail. CINCINNATI,Onro, Sept. 16.—Under the guard of a company of regulars from Fort Thomas the members of the Society of the Army of the Tennessee held their business session at the Grand Hotel this morning. The soldiers were sent as a delicate appre- ciation of the society by the Government of the United States. General A. M. Dodge, the president, called the meeting to order with the gavel that was made out of the wood of a tree that stood near where General Thomas fell. The president made a brief address in which he reminded the members that they had once again met in the city which was the old home and resting-place of the officers that had served it so faithfully. General Secretary Hickenlooper, who has had neither predecessor nor successor, made a brief report and gave the following list of the deaths that occurred during the year: Lieutenant E. P. Tovey, Chicago; Major C. H. Dyer, Chicago; Captain E. H. ‘Webster, Captain T. H. Griffin, St. Louis; Major George B. Hogin, Chicago; General Mason G. Rayman, Kansas City; Major Frank F. Peats, Rockford, Ill.; Lieuten- ant-Colonel E. C. Dawes, Cincinnati; Lieutenant Oliver Anson, Council Bluffs, Iowa; General Charles Sutherland, Wash- ington, D. C.; General Walter Q. Gresham, ‘Washington, D. C.; Major J. W. Paddock, Omaha, Nebr. Treasurer M. F. Force announced that in order to meet the expenses one or two bonds would have to be sold, and the necessary authority was given him. Colonel W. 8. Oliver, who was in com- mand of rthe fleet at Vicksburg, i= almost blind and disabled, and at present in a sanitarium in California. An effort is to be made to have him transferred to the home at Santa Monica, Cal. Colonel D. B. Henderson of Iowa, of the committee on statue to General Sherman, to be erected in Washington, reported available funds on hand to the amount of $93,432 49 and that they were assured of about $2000 from the excess to the Grant statue fund, which the G. A. R. gad in hand. The best artists of the country were already engaged upon designs, and it was hoped that by January the selection for a design would be made and the work immediately begun. A committee to take proper sieps in regard to the Grant monumentin Wash- ington was suggested, and Captain Tutkill, General 0. 0. Howard, Colone! V. B. Hen- derson and General Dodge were appointed. This memorial may be a bridge across the Potomac to Arlington Heights. The Logan monument was already ap- proaching completion and had been seen by Mrs. Logan in Italy. The event of the day was the meeting to-night at Odd Fellows’ Hall. At 7:15 o'clock the procession was formed for the march to the temple. On the stage were grouped , Colonel Fred Grant, General Dodge, Mayor Caldwell and the other speakers of the evening. General Andrew Hickenlooper made: a short address. of welcome, The meeting was then formally opened by prayer by Rev. Robert Brigson. General Hickenlooper then introduced Governor McKinley, who delivered a short speech. Mayor“aldwell was the next speaker. Gene; Dodge, president of the society, then' 'léponded to Governor McKinley an@ aayor Caldwell’s speeches. Colonel Fred Grant was then introduced and was received with great enthusiasm. Colonel Grant in opening his address said : “I thank you for your kind welcome this evering, which I appreciate greatly as coming to me because of the name I bear. When I heard yesterday tbat you wanted me to be the orator of the twenty- seventh annual reunion of the Army of the Tennessee I felt, knowing that I was not a speaker, that I could not accept the honor you wished to confer upon me, but remembering that you were old friendsand comrades of my dear father, that you had been through sufferings and triumphs with him, sharing with him the same anxieties, ambitions and glories, I feel emboldened to come before you to-night as his men and talk to you a little about the story of the last years of the war as I know it ap- peared to General Grant, your first com- mander. “Since I have had the honor of actingas one of the Commissioners of Policein New York City several newspapers have said complainingly that I wished to infuse ioo much military spirit into the police force there, and that I should remember that it is a guara of peace that is really needed and not one of war. Itistrue thatI do not object to a little martial spirit among policemen, knowing that gentleness, kind- ness and peacefulness are always to be found in the hearts of the bravest soldiers. “All the world knows how you, the noble soldiers of the Armv of the Tennes- see, after laboriously working your way into Vicksburg and enduring the fatigues and trials of that long campaign and siege, entered as victors at last—not to triumph cruelly over your de- feated enemies, but to divide your rations with them as with brave fellow-soldiers and to extend to them all consideration and mercy. “I have all the more courage in speaking to you, because I experienced much kind- ness at your hands when a lad of 13 years. I was with you during the siege of Vicks- burg, probably very much in the way, although you, who were so busy in the great conflict, still found time to show me much friendly consideration. “I propose to-night to give you a sketch of General Grant’s own plan of campaign, and to describe the order in which he would have narrated the story in the sec- ond volume of his Memoirs had he been able to use bis voice in dictating the last month of his life, or had his life been spared a few weeks longer. [ Lknow well his intentions in this regard, as I was with him constantly during his last illness when he wrote his book. “In narrating the story of the campaign of the years 1864-65, Grant exhibited the movements of the army as they appeared from the commander’s headquarters. He said that his plan with reference to the Army of the Potomac was gim- ilar to that of Napoleon in the Russian campaign, while the plan in reference to the whole army much resembles the plan adopted by the allies in their campaign against France in 1813-14. “Itis undoubtedly a pleasure to you to know that the whole ~campaign was directed by -an old member of the Army of the Tennessee while he gave his imme- diate and direct attention to the left wing of the army around Petersbnrg and Rich- wond. “The successful and brilliant movements up the Shenandoah Valley were conducted by an officer whose early experiences had been with the Army of the Tennessee— General Phillip H. Sheridan—and the right wing, of which the Army of the Ten- nessee was so important a part, was directed and controlled by another com- rade of the Army of the Tennessee—Gen- eral William T. Sherman. Thus one sees that the Army of the Tennessee before the end of the war had to furnish the com- manders of all of the active columns. “f may here mention a very gratifying circumstance. When I had the pleasure of meeting the great German general, Count von Moyltke, at Berlin, in 1873, he said to me: ‘I have learned and profited much from studying the campaigns of the Union armies during the Civil War, and I made use of this knowledge during our campaignsin France, especially in attack- ing field artillery.” This was surely high praise for our armies, and it has caused me to study the great campaigns of the world, from which study I have become convinced that there have been five great epochs in modern warfare. “In conclusion I beg to say to you, my comrades, that my father, General Grant, was greatly distressed in the year 1884, when he found that ill health would pre- vent his meeting you at your reunion in Minnesota. You then invited him to make the oration the next year, when you were to come together at Chicago. Deep, indeed, was his sorrow when you spoke to his physicians of your invitation and learned from them that he would prob- ably never attend another reunion of the Army of the Tennessee, but up to the last moment of his life he cherished the deep- est and most heartfelt affection for you, his dear and oldest friends. With his name this love for the Army of the Ten- nessee is my inheritance.” CLEVELAND NOT A CANDIDATE. At Least That Is the Opinion of Brother- in-Law Bacon. TOLEDO, Omuro, Sept. 16.—N. B. Bacon of this city, a brother-in-law of President Cleveland, being married to the Presi- dent’s sister, was interviewed to-day in regard to Mr. Cleveland’s feeling on the third-term question. Mr. Bacon said: *“I am satisfied that Mr. Cleveland would much prefer to devote his time at the ex- piration of his present term to his law practice.” *In plain words, he is not a candidate?’’ ** That is my understanding of the situa- tion exactly,” replied Mr. Bacon. Asked asito whom he thought;the Presi- dent wou'd favor in case ne was not him- self a candidate, Mr. Bacon said: ‘‘He is on very friendly terms with Mr. Whitney, and their official and personal relations have been closely allied. And, I may say in the same connection, that his relations with Mr. Carlisle are also very close.” G e Want to Hear Carlisle. CHICAGO, IrL., Sept. 16.—At the re- quest of the leading officers of the various labor organizations in Chicago Henry S. Robbius, president of the Honest Money League, has written Secretary of the Treasury Carlisle asking him to deliver an address on some date in.the near future before the wage-earners and laboring classes in this city. PRICE FIVE CENTS. T0 SAVE ARID LANDS, Opening of the Fourth National Irrigation Congress. JESSE GRANT PRESIDED. But He Was Succeeded by Colonel Frost as Perma- nent Chairman. PRIVATE ENTERPRISE NEEDED, Problem of Reclamation Will Never Be Solved by the General Government. ALBUQUERQUE, N. Mex., Sept. 16.— The fourth National Irrigation Congress met at Grant’s Opera-house in this city this morning. There was a large attend- ance, representatives from almost every State in the Union, as well as from Mexico and Canada, being present. The meeting was called to order by Hon. William E. Smythe, chairman of the National Execu- tive Committee. Jesse R. Grant of Montana, youngest son of General Grant, was chosen temporary chairman, and W. I. Cook of Iowa was made temporary secretary. The conven- tion was permanently organized by the election of Colonel John E. Frost of Kan- sas president and Fred L. Allis of Califor- nia secretary. The speakers of the day were Governor Thornton and ex-Governor Prince of New Mexico and J. E. Saint of Albuquerque. After the addresses of welcome Judge Emery of Kansas spoke on the subject of irrigation through individual effort and William E. Smythe gave an address on “A Review of the Year’s Progress in Irriga- tion.” At the evening session there were ad- dresses by Hon. Clark E. Carr of Illino ex-Governor Lionel A. Sheldon of Cal fornia, George Q. Canon of Utah and Professor A. E. Blaunt of New Mexico. It is the most largely attended of any previous convention of the kind, and it is evident from the utterances of the speakers and earnestness of the delegates that the meeting will be fraught with practical results; that strong organized effort look- ing toward the reclamation of the arid region will be the outcome. Judge Emery of Kansas, the National lecturer, in his speech this afternoon did not favor the Carey law which donates one million acres of land to the arid States for reciamation, nor did he B ‘s that the problem of reclamation '\‘r o,l! ever be solved by the aid of the General Govern- ment. He thought private enterprise and individual effort would be the means of converting our desert wastes into blooming gardens. The Tertitorial Fair is in progress here at present anfl the delegates to the congress are presented with an object lesson of the effects of ¥rrigation in the sunny land of the new SQuthwest and may form a fair idea of the\extent of the progress which irrigation hay already made in this region. The city is thtonged with visitors and the streets are in i i e o s e e g STOLEN FROM A COTTAGE. Twenty Thousand Dollars’ Worth of Jew- els Taken by Thieves. NEW YORK, N. Y., Sept. 16.—Jewels valued at $20,000, belonging to Mrs. H. Victory Newcomb, wife of the broker and club man, were taken from Newcomb’s cottage on Ocean avenue, Elberon, some time cn Saturday or yesterday. Their disappearance became known at noon yesterday. Search was made for the jewels and the thieves. The jewels have not been recovered and the thieves have not been found. On Saturday, before the jewels were missed, there were in the cottage Mr. and Mrs. Newcomb and their son. Six ser- vants looked after the cottage. The jewels, which haye been noted in Elberon, were in a case in Mrs. Newcomb'’s room. That was late on Saturday afternoon. = At noon yes- terday they were not in their usual place. Search was made throughout the house, but the jewels were not found. There was nothing to _indicate how the jewels had vanisbed. No marks were on the windows of the room to show that burglars had been working. [t looked as if sneak thieves may have slipped into the cottage and taken the jewels. B S RUN DOWN BY A TRAIN. Several Peopls in a Wagon Receive Fatal Injuries. . LYNCHBURG, Va., Sept. 16.—Train 35, fast mail from Washington to Atlanta, ran into a wagon containing several persons at Lawyers, a station twelve miles south of this city, this evening. This train does not stop at Lawyers, and was probably going at full speed. Particulars of the wreck thus far ob- tained are very meager. A man was killed who was supposed to have been Joseph Callahan, living near Rustburg, Campbell County. Two women and two children were in the vehicle he was driving, All were killed, as was also the horse. —_——— Reorganization Approved. NEW YORK, N. Y., Sept. 16.—At a meeting of collateral trust mortgage bond- holders of the Oregon Railway'and Navi- gation Company held to-day, the re- organization plan was adopted by a vote representing $4,337,000, out of a iotal of $5,182,000 bonds. For additional Pacific Coast news see Pages 3 and §, ———————————————— SMOKE LaBelle Greole CIGARS, 3 for 25c--10¢ Straight--2 for 25c ASK DEALERS FOR THEM. RINALDO BROS. & CO., Pacific Coast Agents, 300-302 BATTERY ST., S. F.