Omaha daily bee., 1888-03-04
The Result Disadvantageous to
American Bonds.
WILL NOT TOUCH GOULD STOCKS
Great Regret That tho Wizard Was
Not Tried.
THE VERDICT NO vINplcATloN.
English Stock Buyers Demand bet.
ter system OF Auditing Accounts
OF Railroads-Thc English
Method.
The Gould.Sagc Matter.

The Gould Sage Matter.
tCopyright 1883 bv James Gordon Bcnnett1
LONDON, March 81 New York Herald
Cable-Spccial to the BEE. 1T was easy to
find financial magnates who had read the
cables from New York about the action Of
the grand jury in anticipating defense for
Mcssrs. Gould and Sage, but IL was difficplt
to get from them any direct expression Of
opinion. Several said 'the cable accounts
were too mcager." Yet Others having strong
opinions, decline to speak with q use of their
names. A few only were willing to be-
quoted. 1t was evident, however, that the.
average consensus seemed to be that this rosf
fusal Of the jury was likely to become disadi
vantagcously quoted for American bonds
especially for Forthcoming or new isi
sues. As one broker facetiously ros
marked: "You may scatter now Ameri,'
can bonds as you will, but the
scent and tho taint of Wabash and Denver
will cling round them still" sought William
Abbott, who has studied what are called in
Capel court the tricky trinity among New
from the city, as were Sir John Puleston, H.
L. Horton and Thomas E. Davis. l found
Mr.. Adolf Boscvain, Of Blake, Boisevain 8
Co., also connected with Amsterdam and
New York finances, and active in
pressing the claim of Hollandaise victims IN
the deal which the grand jury investigated.
He was Of the opinion that the result
would not prejudice we'll known American
bonds or the credit of well managed enter
prises but would forever injure any bonds
with which the gentlemen who were investi-
gated had been connected. He was, how.
ever, very reticient and cautious. could, !,
however, readily infer from his manner that
he did not place either Gould or Sage on q
plane with the late George Peabody, Sir
Moses Montif1ore or w. w. Corcoran. One
of the Messrs. Seligman said the American
market just now is so apathetic that this
grand jury incident will pass almost un-
noticed as respected any effect on the pres
tige Of American securities, and the public
will have TO be contented with the verdict
But he did not use q tone or an empasis nor
look as if he thought the method or result
was q "vindication." I next talked with g.
member of the firm of Hlburn g. Co., whoi
trade largely with Dutch customers and
firms. He said:
81 am quite at a loss to understand the do,
cision of the New York grand Jury. If jus-'
tice had been meted out with an unbiased
hand the jury would not have allowed the
defendants to get so easily out Of tha.
upon the prestige of American securities he
thought there would be little Of undue effect
because the investors on this side now dificrt
entiated SO distinctly between the values Of
American bonds controlled by men Of shalsy
regulations and those that had won conil.
dence.
Several other bankers considered that
if Messrs. Gould and Sage had been put on
trial the discussion of the alleged fraud
would nave ended in prejudicing all AmeriS
can securities, and that the European public
might now assume that the result for the de-
PENDANTS was: Not guilty of fraud.
Mr.. A. p. Turner, who has banking and
brokerage houses both in London and Phils,
delphia, was more communicative. "Yes,w
said he, ~ believe there is considerable
regret in London financial circles that
the grand jury failed to indict Mr.. Gould,
and it is in some respects a sort of lynch law
regret, inspired by the mans character and
methods. In considering the effect which
the refusal to indct may have upon Ameri-
can securities, one must consider that Eng.
lish investors know Gould's reputation, and
SIMPLY refuse to touch any Of his stocks.
Missouri Pacific, for instance, goes begging
here. What English stock buyers demand,
however, from American railways 10
that their accounts shall be audited
so that shareholders may know more about
their management. In this respect the sys-
tenn of English roads, by which shareholders
appoint and pay their own separate auditors,
is highly commended, and have small doubt
that within the next two or three years the
United States railway commission may re-
qure all roads to ADOPT some prescribed
method Of auditing their accounts.
Fatally Burned.
ERRGrs FAILS Mimi Maj ch z - Last NIGHT