, 1875-08-08

tn14 Exchange on tbs b4s.s a Any other u,c-
to:a-
which wero purely techulcal. and had no public
iut.rest,
The Exchange adjourned for one week.
LOCAL LETTERS.
DAVID H. GAGE
10 thf EditoT Of The Chtcauo Tribune.
CHICAGO, Aug. Tt has been a source Of sut-
prise to the many friends OF David A. Gage that
no denial OF the charges Of enbezzement, fraud,
and theft has been made in his brhalf, and thar
the public should have been allowed to suppose
for 30 long time that no defense could be Of
fered against them. There probably ia no other
gentleman in the city who has 50 exteudal an
acquaintance and who has 80 large number OF
friends, who have thought it no disgrace to be
considered friends OF gentleman 30 universally
esteemed for honor, integrity. generosity. and
the numbarless good traits that combine to make
up the character Of Straightforward, honorable
man; aud they cannot believe that after living
among them 80 many years, and showing such
honorable traits Of character, he could have sud
denly proved himself knave. They think it
dot only improbable, but almost impossible, that
be should have misapptopriated public money,
It has appeared strange to me that the
controllers OF tha leading newspapers Of this
city all Of whom have been accounted his friends,
and all Of whom venture to Say still believe in
his integrity, should have boen content to allow
their columns to contain from day to day arhcles
in which he ia denounced as embezzler and
thief, without making some attempt to discover
whether or not there could be no statement OF
defonse made by Mr. Gage,
The settlement OF accounts between Mr.. Gage
&t.nx SkSv Hnrrx 4 h--
benefit derlvod from discussing the legal ques-
tions here, aud have neither the ability nor
inclination to attempt it. Mr. Gage will have to
abide the result, whateyer 1t may be. But to
many people tho fact that he has been Treasurer,
and that there ia clam made that he has not
turned over all his trust to his SUCCESSOR in
Office, seems sufficient evidence that he has been
corrupt and they seem to understand that he
must be guilty Of peculation, whether or not he
should succeed in avoiding the settlement
through the shrewdness Of his attorneys and
technical legal points.
nr. Gage claims that in point Of fact he was
the agent of the city, and was authorized a1d in
seruoted to invest it's funds as his judgment
should tell him would be best and safest; that
this arrangement vas entered into BY himself
apd the Common Council; that it was made in
good faith, prompted solely by desire to 80 in
vest tho CITY moneys as to obtain the highest
interest With the greatest safety, that there was
no job in it, no r1ng, no STEAL neither Mr. Gage
nor any one else expecting to make money by 40
dong; that by this arrangement he deposited
the public moneys in tho prominent banks
OF the city, dividing the same as
seemed most proper and convenient.
At one time money being On deposit with oisht-
cen different bauks that 10 makiog such de-
posits he WAS not unduly influenced BY friend
ship or favoritism that he took bonds from the
different banks for the projection of the city
and himself, which wore considered perfectly
good, and 70 pronounced by some Of tlo most
conservative men III the city, each bond being
signed pv men considered worth At least
sl,o00,000 in the aggregate that thcse banks
were to pay ~ Fer cent interest. and
Mr. Gage was to turn over to the city
1 per cont !; that up to the time OF tho
panic In tho fall Of 1878 these banks we're
universally eonsideted sound, and the bonds be-
ieyed to he perfectly good. and that he WAS JUS
titled in believing the public interests properly
protected BY the precautions tsken and the
safeguards used that all OF this was done by
him not only with the knowledge and consent,
but with the absolute approval, OF the City Coun-
Gil and its Finance Committee and that, instead
Of cousure, he received applause for SO doing,
aud foz paying over to the city the interest.
Now, it certainly does not seem right that Mr.
Gage should be held accountable for the money
30 deposited, and should be obllgod to bear the
losses incurred BY the banks that went under in
The panic of 1878. Whatever benefit Was to be
derived from euch deposits in the way OF profit
or interest wAs to 20 to tho city it Was not
needless, reckless speculation for his own profit
that induced him to loan the morey to these
banks; their failure was the result OF q financial
storm that carried thousands OF careful safe busi
ness men 10 the bottom, "hlch came Sndaen1y anu
could not have been anticipated by him, any
more than it Tas BY others. de also claims that
bad he been permitted. be could have collected
these claims long before this time, but that tie
city has taken possession OF them and SUED the
banks and bondsmen in its own paine, thus de-
barring him from reai.zing upon them.
The loans made by Mr. Gage upon the hlVef-
sida bonds have bsen severely criticised ous
"nen viewed III 1ne Agus " ~ tne tIeso ~ noS
seem to be deserving OF sucn tel,lo1e ceusule, .t
The most Of these loans we're made oeto5s m s11 tn9
fire. when the Riverside Company was IN the full
tide of successful operation, making magnificent
improvements and selling lots, and every one be-
a. moas successfuI. % suburb bur Of Chicago Before
loanlng tho money 0lr. Gage CONSUMED ses-
oral OF the prominent bankers OF me
city, who approved Of the loan. The law
expresav authorized loaning the city funds
nnnn real estnta security, Tue bonds covered
npon ~ h.acts and lnts and vera not
aige DUNBAR t u natAe % ~, ~ nro,artv ,raa 4hen
excessive