New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-02-17
PATIENT GRAND JURORS.
INVESTIGATING GOULD AND SAGE.
LEGAL YLcop-eATEs OPENED AND DfLUGE OF
Arc1rMrNrs rOIEED OUT.

INVESTIGATING GOULD AND SAGE
LEGAL YLcop-eATEs OPENED AND DELuGE OF
ARGUMENTS POURED OUT.
The Grand Jury yesterday began the considera-
tion of the charge that JAY Gould and husseh oase
misa pproriatcd, withheld sS,oco'coo Oh 'hc
,,oc,, Of the Denver Pacific Railroad Company
which WAS given to Messrs. Gould and Sage as
,rus,aes for the Kansas Pacific bondholders. The
ARGUMENTS which had been made before District
Atto,ncv Fellows and Assistant rict-AttOrney
Scm.le had been printed in pamphlet of nearly
900 pagps and this pamphlet submitted to the
Grand Jury yesterday by Mr. Sempe. Twenty
three copies will be ready this morning, so that
each Grand Juror may have one, and become in
formed as to the facts which the complaint Is
based The pamphlet will probably be read aloud
by clerk. The taking Of testimony will begin
on Monday SuIpoenas have been issued for SIX
teen witnesses Among them may be some of the
signers If the agreement of January A, SS5, for
the consolidation of the Union Pacific with the
Kansas Pacific, officers of the Union Trust Com
pany, the transfer agent of the Union Railway
Company, and perhaps James NJ. Hahn, or some OF
the other witnesses before the United States IA
ciiic Railway Commission
DIFF RENT LEGAL VIEWS
The printed pamphlet contains the argument OF
Edward l.. Andrews, who. with DE Lancey NlCon
and William II. Delaney, represented the prose
cutors of the complaint, and of ARENAS III.
Holmes John +. Dillon and w. Bourke Cochran,
who with James L. Cunning and Almon Goodwin,
appeared for Messrs. Gould and Sage. MIR. An
dr.ws first made d short statement of the facts
which have become famliler to the pubhc lie
said that the Denver Pacific stock was converted
under coNer OF a cOlluslve suit begun by the Nan
sls Pacific Railway Company against the trustee
in which Judge Donohue granted decree releas-
ing tie Denver Pacific STOCK from the trust
Mr.. Holmes argued that there was no GRIM
inality in the proceedings. lie sad that az the
proceedings were reported to the Secretary OF the
Interior IN 1850, and report OF them was pre-
eented TO Congress He stated also that the mort
gage under which the trust was created had certain
clauses which could properly be construed so as 10
allow the release of the Denver Pacific stock.
John F. Dillon made the longest N euinent, oc
the morning of February 2. lie went, with great
detail, into the transactions on which the complaint
is based He declared that the decree OF the Su-
prCme Court valid and properly obtained
The Denver Pacific stock was not appropriated by
Messrs. Gould and Sage, but was returned to the
Kansas Pacific Railway Company when released
from the trust, and was paid out by the Union
Pacific the successor OF the Kansas Pacific, to Mr.
Gould in payment for large quantity of bonds
largely of the ST. Joseph and Pacific anu Kansas
and Nebraska companies. lie also made a long
argnm Mt concerning the application OF the Statute
lie said that The " Withholding of trust property
is Implied III an appropriation. and where the con-
version of the property Is barred by the statute.
the Withholding Is also barred
Mr. Cochran who followed Mr.. Dillon. argued
prlncp ally about the meaning of the section OF
the Penal Code under which, under the law OF
1e1? preceding it, the proceedings are instituted.
Mr.. Fellows, at point IN Mr. COckran's argu-
mcnt made this explanation of his construction
of the Statute of Limitations do not suppose
there can be any dispute whatever about the policy
and force of the Statute oil Limitations. Every
body recognizes the distinctions which exist De-
tween civil and criminal cases with respect 10 tlaG
question. If, for instance, clerk III the employ
ment of a merchant has been stealing from nm
for five years and the merchant does not discover
The fact until five years alter the last theft Is com
peted he Is barred from any erin nal proceeding,
although a scONery oil mat fact gives HIM right
10 sue fol the valIc of the property. l under
stand the Statute OF Limitations to be general
amnesty, which the policy Of the law finds 1t
offenders and against all offenders except GER
begun within limited time"
Mr. Andrews made the closing argument on be-
hall of the prosecutors. lie quoted from the tcs-
timOny before the Pacific Commission to show that
the trustees received the proceeds OF the trust
stock. He also argued that the Statute of Limita
tons did not act while the property was withheld
and the fact unknown 10 the persons Tor whom
the trust held
The quest Ons of Mr.. Fellows indicated doubt
concerning how far the Ignorance OF the persons
for whom the stock held would operate TO
limit the application of the statute.