The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1888-04-05
BENEFITS REPLY.
He Holds Jay Gould TO the Issue.
A Terrific Editorial Denunciation Of
the Corsair.
Defamation of Character No An
swer to the Charges.
Lawyer Andrews Makes Ringing
Answer in His Own Behalf.
The Opinion Prevalent that Bennett Has
the Best OF 1.-THE New York
Stock Exchange Pctitoned
to Take Hand.

Special Dispatch TO The Appeal.
NEW York, April 4.-Tilc war OF words
between Mr. Jay Gould, OIL the one hand,
and James Gordon Bennett, editor OF the
New York Herald and the attorneys Of the
Kansas Pacific bondholders, on the other,
is the sensation OF the hour. The general
impression is that Mr.. Gould by attacking
the personal character Of Mr.. Bennett
sought to change the issue, but the Herald
holds him 10 1t. Mr.. Andrews has directly
challenged Mr.. Gould TO waive the
statute Of limitations and 20 before grand
jury, and the position into which he has
been forced affects his honor, A circular
is now passing about Wall street for sigma.
lures petitioning the Stock exchange as
follows
"We respectfully call the attention Of the
Stock exchange TO the following facts:
The consolidated bonds of the Kansas
Pacific Railway company are regularly list
ed on the Stock exchange. The records OF
the exchange contain q deed Of trust TO
Jay Gould and Russell Sage, which deed
purports 10 secure the holders OF the con-
solidated bonds, by the delivery in trust 10
them Of about three millions Of dollars OF
stock OF the Denver Pacific Railway and
Telegraph company. by the terms OF this
trust Jay Gould and Russell Sage were To
hold this trust stock for the security and
benefit OF tho owners Of the consolidated
bonds.
Each purchaser Of these bonds, 10 which
the Stock exchange has thus given pres
tigc, has right 90 suppose TINT this s, 900, =
0O0 Of trust stock are still held for his secu.
rity and benefit by thesc trustees. The
facts, however, do not justify this suppo-
sition. The United States Pacific railway
commission has established that this trust
stock and its proceeds have been appro-
priated by the trustees themselves, and
District Attorney MARITIME has rendered an
opinion, That the acts with the commits
sion OF which the defendants are charged
constitute n crime
| Meanwhile the bonds ore dealt In upon
the faith Of your official records, which
indicate that the trust stock is still intact.
The security OF the investing public Is in
yolved In these transactions. II collateral
trust bonds can be listed and sold on the
faith OF certain securities being held los
the trustees, and thos. securities ar,
really taken out Of the trust and appro
priaicd by the trustees, tho Stock ex
change Is used ia mannd which requires
no comment.
"'rhc exchange SHOULD require thcs,
trustees 10 sustain the moral guarantee,
which they induced the stock exchang,
10 hold ont 10 the public. II should re-
quire them 10 restore the proceeds OF the
trust stock 10 the trust securing these
bonds listed ON the exchange. In default
OF their compliance the exchange should
In iis own interest and that Of the invest
ing public. lend such aid and countcnancC
10 the authorities as viii assist in making
good the trust funds and maintaining In,
integrity Of It's listed securities"