Fort Worth weekly gazette. [volume] (Fort Worth, Tex.) 1882-1891, 1888-01-20
AFTER JAY GOULD AND SAGE.

AEiEh D. Al GUILD AND SAHEs
President Cleveland Asked to Assist !,
| Bringing the Railroad King Back fo,
| Criminal Prose cution.
| st. Louis Globe Democrat
NEW YORK, Jan. 1.-the Kansas Ps.
cltc bondholders are leaving nothing IN
done to accomplish the recovery of the
proceeds of the Denver Pacific stock
which they slleee 10 nave been illegally
| aoStrected from the Kansas Paciic Com
psoy's treasury 6y Jay G Juld and Russell
Sage While acting as trustees of the com
pany. The following letter On the subject
was sent TO President Cleveland to-day:
To the President: -000'
The recommendations contained in the
reports Of the Pacific Railway Commits
sioners, now pending before YOU. in
wolves serious consequences to the hold
ers OF consolidated bonds OF the Kansas
Pacidc Railway Company. The lien
which the government possesses upQn q
large part OF that property is superior in
rank to the consolidated mortgage, and
connected with this priority the govern
ment has the right to require SUCH silk.
Ing fund appropriations from the
earnings OF the Kansas Pac. fc
road as will secure its re-
payment But there are special
circumstances relating to the trust in
tended to secure consolidated bonds
which entitled the holders 10 the indulgent
consideration OF the government. The
PscIic Railway commission devoted con-
siderable labor to the discovery of the
facts concerning the spoiiation Of that
trust. They established that the trustees.
Jay Gould and Russell Sage, took $500.
GOO Of securities out of the trust and SD
propristed the proceeds to their own
uses. A copy Of the application to the
District Attorney Of New YORK for the
recovery OF this trust property by crimi-
nal process, IS well as for the punishment
OF the trustees, is herewith submitted.
The decision OF that officer WAS rendered
in the following terms:
THE DISTRICT ATTORNEYS OPINION,
In the matter of Jay Gould and Russell
Sage. This is sd application to present
to The grand jury c charge Of larceny
against Jay Gould and Russell Sage, IN
der section 54l OF the penal code. In nv
opinion the acts with the commission of
which the defendants are charged corsti-
tute crime. A possible obstacle to the
successful prosecution of the persons
complained of, Is the statnte of limitation.
Yet, there are strong reasons for beliey-
Ing that obstacle is not insurmouptsble,
The statute under which it is sought TO
prosecute may he so construed as to eE-
able the people to proceed,
the statute of limita-
ton, and such construction would
have much support in reason and
c ommon sense. The question is SO close, |
end the interests involved here, as well of |
the people as OF the defendants, are 30 i'm |
portsnt that it seems proper to leave the
determination OF this question of law TO til g |
courts, and, in order to effect this result, |
the facts should be laid before the grand |
jury, and IL proven, an Indictment found |
snd tried. RANDOLPH 3. MARITIME,
December 81, 1887. Dist. Ati,y, |
The ABOVE Judgment is in.,he hands Of !
the present incumbent Of the district at
torneyshjp for his action thereon.
This action is on the line urged by sIl !
the government Commissioners, and |
involves the compulsory restoration Of
the property, amounting, with mere
msnts, to nearly 90 per cent. of the out
issue Of consolidated bonds OF
The ks7sss Pacific Railway Company. In
this connection the identity Of the inter
Rsts OF the United States and the con-
solidated boDdholders should be noted.
COMMON DEBTOR.
They are both creditors Of 9 common
ebtor, and IN respect Of their mortgage
On 400 miles OF railroad, the rights Of the
oondhoiders are subordinate 10 those of
The government. On the other hand, the
ni,l rrit IS ~ !
been taken By the trustees. With the re-
3toration OF these trust assets the con-
boldholders would be enabled
10 meet the strict Requirements of the
The sole obstacle to the
OF this result consists in
he fact that Jay Gould, one of the trus-
ees, who was the recipient of much the
anger part OF the trust assets, is out Of
he Jurisdiction, and In the absence of
xIadfsion treaties covering this crime
ian be brought back for trial only upon ex-
'cutive request, through diplomatic
,hanneis. According to the precedents in
uch cases, formal application for his rem
iition will be duly laid before the Depart
nent Of state. Under the foregoing circum. {
tances we submit that the consolidated
'ondholders should not be SUBJECTED to
ne risid enforcement OF the rights of the I
government until the restoration of the {
rust enables them to secure proper
narshaling of the assets, as between them ]
nd the government. We urge that the
mixing fund require men.s to be imposed !
II the Kansas Pacific property should
cave sufficient amount to pay the inter- I
st on these Junior securities until the
rustees are compelled to make the trust
7hole and the bondholders are thus Sc |
urS Independent OF the property i'm I
reSted with the government liens Very
Vtcuully, WILLIAM H.DKLArtEY.