, 1874-07-23
for GU bs1a5Sa M 1 By st deeds to Horny Groonotau

woro unaold. md Gage oharooa thnt ia fr.r;s".
tmn5!Y omitted 9o0 Lots from tho trugk docde.
rangemonts to soll tho bonda i,t ill., Gr ~. T.,
October disturbed bis arrnnroront Wv s,5 ~, -
nubso4nont visit ho Was not SO a,iccoasfl. 4
lsrgo numbo1r, Of tho bonds woro tSt sfterwar,ia Il
o eSf"5y 70 SECURE oans
$780, exclunive Of tho 10 mar ncnt I ~ SIEa ie
profits. Tho doed Of tho Improvement Comnanv
to t!lo Gas and Water Company Of dya-olahthn
OF tho property Gage ,,1's:;, alloEos wins % ~
consideration, md ita truat-decd is, therefore,
e1uitably tho. trust-.leod of tho Imptoyatnnots
Company. In March, 1872, tho Gas and Watnr
COMPANY reeonvoyod this property to tho In
wore Issued Ch|ids represented that he had 1tis nn
n1 oil lionH on the property. except tho proBcott
lo1' and another for S75 600, so that tho boutla
were @ firht lion, but Gage llas ainoo ascortn,ed
vI tnat number OF reloasoB malo by Page anu
ahorofrom. '' 'oDA''
thllds and dreenebaum went to New York to
NEGOTIATE a BALE
consde1uto pas o sefG %Sc @aaa and Tho
uh'lds faiod, and lo was left With tho bonds as
hiH aoo security for tho $3.50 900 he having con-
xeyod sy tho lard ia foo to onab'o tllo Company ia
naYo tho title, 20 IA to mortgage IT,
Iho Company, In 1879, still being In an nm.
asaa;a oaraahsod financial condition. CIilds aud biz
coScocTED ANOTHER scuE,tE
70 lalse money. Clilds proposed tAak oreone.
G.na souiG tn Should 10 Released aud tin,
WHtoh Gn1lda was to form. He rcnreaontod tn
sGago that he bad tho control Of Tia cl,artcr ri
tho ,o. Lasallo a. y chicngo Hai|road Company. and
1,roua, 1has ne naa. together with Dunacomb and
bull aafd railroad by way OF Riyoraide mi fhns ~
le bad procured Eli bscnptions to the ntnonnt nf
Sa0o. 400. Chds therefore proposed that Garo
Should ~ allow big land to be held BY Chiids nd
h!B aaHoofatos that they would ehnnge thn ,,nn,c
OF tue railroad company to that Of Tho
CHICAGO GREAT WESTERN
!tailroad Company, and would issua its bonds Ia
tho amount OF S8,600, 100 that thoy would then
convey e al inc lands OF the improvement Com
a. q Great Western Railroad Land Company,
Ih's last naned company waa to gyo trust-
deed to J. N. Jewett Of all this Property to no.
c'ire Gu thu payment Of 81, 100000 bonds Of tho
Chicago 4 Qreat Woatorn Itnilroad Comnany.
aud these bonds vero to be givon to the In
provoment Company to eottio its indebtedness.
Gage thonghs this Bchemo worry intricate, but
%as hnally induced to ga into 1t, on tho promise
h,n snat ne should have ample security in railroad
nohus gwen him. Ho accordingly turned over
the land aud also the uotas OF Dunacomb aud
Brownell which ho held.
Gage claims this whole scheme was
F0''91s9'oA
comb and Bro~nell notes. In June. 1878. CLiIds
represented he had secured for cancellasiou tha
Tal,I., mnos hEat issue ct 1,6oo bonds, but
complainant svers that some Of them
to tRs tRsasss sa' cas Gon
showed all the bonds in his poesesson nnil
largo numoer Of releases Of various dobta. AMI
Gage surrendered the notes and bonds. liz non
as.ossa tuas e. tLls surrender was procured bJ
1eEred to the Laud Company all tho Improve.
ment Companys property, but has aIlowod
large part to be used in payment Of private
..a. debts o. Of Danssomb or Browuel OF tho settle
pany, and also that the Prescott mo,tsa.e
Isi 4as never been paid. The trust-dood (
Jewott. moreover, Was not given tt
secure 1.oo0 common bonds, an eou:I
footing "a regards payment, but 200 Of them
"ere mauo preferred and q lirst lion.
Jewott prepared a trusr~dood AZ wished. lut
Chllds laid this aside and had another maIo bY
Austin stovans iu which the fraudulent charge
was made: Quo hundred Of the preferred bo,.ns
Of 3so, QUO against the Riverside Hotel Company
held 1al BY tho Third National Bank Tho ot:lor
l00 bonds wero givon to tho Ptcls
a. security for loan Of e75O00,
aud al these preferred bonds wore tal:cn
Gage charges, with notice OF his equities. Tho
parties who took tho various lots which Chills
fraudulently sold did not receive deeds. or. If
they did, were not allowed to record them Until
q, June !, 1873 the date when tho deeds from tho
3lrs riverside Improvement Company to the land
gethor. They amounted to about $3.50, 0D0 IN val.
ue' some ooing actually given away.
IN MAnoII, 1873,
un.ias, as President Of tho Improvement COM
lso lots, the conveyance boing without colsd-
Grafton, and dono to dofraud complainant,
Gage alleges that all the said acts we: 0 In
Etaud OF his rights; that no parties who recciyod
any part OF tho Riverside property with notice Of
othor representations.
clt11Ds ALSO PROMISED
Elat the railroad should bo started In ton days
attor a1 - tue - arranso1nonts were completed,
Tho season Of 1873. Instead Of THU
Work las nevor been eyon commenced, anil his
bonis IRE therefore worthless. The remaining
bonds besides what Gago had wero distributed
around whero thoy would do the Most go,d, or
to suspect that all was not right, but dll not
know until latoly that aome OF tho bonds wors
profoEred.
AT THE TINE or TILE GREAT FIRE,
Sage ohargoB Clilds 4ad drawn about $4,000 OF
'he funds Of tho Riverside Improvement Co,rany
md uaet It ln building au elegant residence IN
,omo OF tho lots in Riverside. Murray, also, 1t
tho semo time, had oyerdrawn $3.50, 200, aid ii d
yas also used ia building tine holHe iu River
'do. Since January, 1874, Chiltta has eoll o1
;lVon awaya largo nutnbcr Of lots. seourod ty
ho trnst.dood, to various parties. to defraua
It il also alleged that the hotol-property
vat fraudulontly sold undor some decree OF trust,
nd conveyed to ". 8. Hubbard, Jr., who Las
inco 1ocouyoyod 1t.
In conclusion, or about the 125th page, Gage
'oBinB
TO sun UP
" stating that tho Land Company ras only AL.
ho,izcd to hold such lands az were necessary to
ts business, to erect warehouses and carry ona
business in Chicago, but that it haB
lover dono 10, and las no authority to ta::o poa-
ossou Of tito land conveyed to it by tho
'iyorsido improvement Company. and tho
uly result Of such conveyance iB o
laim OH the Improvement Company's land;
50 Of the quo Groonebuum bonds ars still, 1t 10
|ainod, lien Oh the Riverside property. and all
le premises conveyed to tho Land Company aro
till in equity subject to the QreenebAunl trust
ted. III Docomber 1878, Gage assigned $50 Of
10 bonds of tho Railroad Company to George
aylor, az Trustee, to Becura an indebtedness tc
10 City Of Chicago. aud ho has slnce asked
aylor to beoomo o co-complainant, but, that
ofson decliutng, oomplaiaant makos him do.
3udsut.
Wherefore David A. Gago asks that all the
partie8 mny 10 mRdo defendant;
Int tho conveyance to tho Land Comr my be
3clArpd void the Graouebaun trust deeds bo