, 1873-12-21
No Definite Conclusion Yet Ar
rived At.
Liability OF His BonGsmen---Mr. Tulcy's
Opinion.
Mr.. Cages Defonsc Against Grim.
innl Prosecution.
10 Illus Not Fled tho City, but is Realy
10 Stand Ills Trial.

Ncottng WAS hold yesterday afternoon In
Tho Mayors o0lco to couBldor wllat stops should
bo takon to
PROTECT THE CRY FROM Los3
lrisng from tho dofa1catton III the Treasury.
Mayor Colvin, Corporation Couunel Norton, with
vhom wore associated In the caao Judge Diokoy
md Mr.. Barney Caulne!d, represented tho city.
Hcsers. Jowott 4 hladdocks represented Mr..
Sage, and Mr.. Writ Doxtor Mr.. Gago's bonds
men. Aid. nlccirath anl spaulling, Of tho III
nanco Committee. wero prcsont during part of the
proceedings. Tho meeting WINS partially private,
that Is, reporters wcro excluded, though thoro
was no great difficulty In ascortaining from
como Of tho gentlemen present what lad taEon
place. lilo schedule Of bir. GaRos property,
nlloady published, was rcad, and 1t was decided
TINT specific description Of tho property should
DO drafted as,d submitted at a future meeting.
WHAT THE o1rr PROPOSES.
On tho ralt OF the city it was Btnted TINT tho
property would 10 acccEted, to 10 placed III tho
handa Of Trustee. who should ronlizo npon It
md turn over tho proceeds to tile city. provided
the bontlsnon bound themselves to mako up tho
deficiency in case tho sum roa!ized On tho prop
orty did not cover tho total dofnication.
NO DEFINITE ooKoLus1os.
This olictcd somo discussion, onling in Mr..
DcxterB stating TINT lo would colisult with Ills
ccnts. The moo:ing was protractel Until
o'clock, whon TIM gentlemen dlsporscl with tho
understanding that they wese to meet again
Tuesday. It soen1s to be tho disposition of tho
city authorities to hold tho bontlsmoo at all haz-
ards aud, If They do not agroo to the above
proposition and eutor into written contract to
that effect, proceedings to recover the ontiro
amount of tho dcfalcaton will bo Instituted
without delay.
LIABILITY OF THE noNDsMEN.
There Is div rsity Of opinion ns to the linbll-
ity Of tho boudsmon, CONT lnwyers holding that
the city, by accepting tho interest, had Approved
nnd to certaiu extent authorized. the loaning
OF tho mony to banks, or to any one who would
puy intol ost. Thoy ask wl,oro the interest was
to como from, II tho money waB not loaned. Dec.
3. 1870, ar. Gage aent a communication to tho
Council as follows
ssa: q: f''''' '"S '''' "4 '''"'' '0'''' aSSs''-
GEsl1EME I, rs Troasnrcr Of The clty Of chica-
60. ayo to Auuor to report TO your honornhte body
fhc following statement Of interest received by mo on
tho cily deposits oil Of which ha,o returned 10 tho
' 0'l'>'0 ''' ''~ O''>' wv D. b. 4. aAoE
CHICAGO, Dec. t, 1870. City Treasurer,
Amount .rlyc Is Interest deposits.
Paid to Comptroller 6A,s2o.O OF
This WOE before the expiration Of Mr. Gagos
first term. aud might not bcar directly on tho
defalcatiou, which may or may not have boom
begun during that tetm. March 81, 1S71, how
over, alr. Qage again reported to tle Council,
among other mnttcrs, tho paying over of
q ,40G. 78 as interest," 1t is coneudcd that these
reports were sufficient notification to the Coun-
Gil thnt tho city money WAS loancd, and that tho
Council tacitly inaoraod that disposition of the
money. This IN tho Wow Of tho matter taken by
eomo lawyers who uro not professionally inter-
ebtol.
,Ip rr1 cy,a nrI1ro..
reporter called upon ox-Uorporation-Co -Coun-
eel Tuley yesterday, and propoundod tho follow
heportoE Assuming thcro was dofalcution
at tho end of Mr.. GNgo'a first torn, how will
the second bondl
Mr. ru!oy-lf any dofalcatlon occurred during
tho iirat term, hts first bond, think, would bc
were inado good, aua subsequently thera was .
deficiency, his last or eocond bontsmcn would
Liable.
Tue following is copy of tho lrst bond:
ovr1ctAI nowD.
, waa TueSsr, SSs Abs orosS2 oSadaG
sers ase :l IT. :vss sS oSssS = nsS sS ff1s
Wilder, Of the County Of Cook and State Of Illinois,
penal sum If s. ,5o5u0u, lawful money Of tLs Unesl
statcs. for tho in, iuut of which sum OF money, woll
.ud Eay to- b. 1d wa bna ] ourselves our hsiss
se1ied with or seals and datel this 10th day Of De-
Tho condition Of The at,oyo obligation Is such. that
Hlercas tilu above bouu.fn David A. Gage tue
Treasurer il and for tic cy oi Chicago. 10 hold sal
,lilce Tor the rcrlod Of Two ycars and Until hls
shall be duly clootod ad quuel until said
otIico sllall he otlrrwiso legally vacated.
Now, therefore, If the bald David A. Gage shall woll
.aI i4tnfny priogn the duties Of sad otce ns pre;