The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1888-02-17
THE GOULD-SAGE CHARGES.
The Papers Laid Before the Grand Jury
Statements from Both Sides Of the Case.

New YORK, Feb. 16.-The charges against jay
Gould and Russell Sage, made on behalf OF tho
stockholders Of the Kansas Pacific railroad. ct
appropriating to their own use So, 000, 900 Of tie
company's bonds were laid before the grand
Jury this morning. The jury was given ak
documents bearing on the case, and on
Monday next Witnesses will be summoned.
These will include the complainant security
holders, about twenty in number Among the
documents submitted to the grand jr.y was .
pamphlet containing the printed arguments OF
the counsel for compliments and defendants.
heard by District Attorney Fellows, with closed
DOORS about the first of this month, when con-
sidering the question whether or not to lay the
matter before the grand jury. This pamphlets
was given to the press tonight. Edward l..
Andrews, who presented tho case on behalf
of the compliments. said: ''The essential at
tributes of the case do not differ from an ordi-
nary case of embezzlement There is the same
intrusting of property, the same approprlatio9
of it, the same discovery of the secretlng, the
same demand and the same Withholding OF the
embezzled property that ensues in an ordinary
case where an employe takes what 10 Entrusted
to him by employer" Counsel went on to
say that the only difference which the case pre-
sented from that of an ordinary embezzlement
that it was done under the apparent forms
of law, one of the courts of this State being
made to become unwilling participant in
their acts.
ArtemuS ii. Holmes, IN Oehall OK the RESPOND
ents argued that there criminality in
the proceedings, nor were they carried on in Sc
crecy. All the proceedings were reported to
the Secretary of the Interior in 1880. and subse-
quently presented in report to Congress The
mortgage under which Messrs. Gould and Sage
we're appointed trustees contained clauses
which could very properly be construed so as to
allow the release of the Denver Pacific stock.
John f. Dillon argued further in behalf eof
the respondents. He went into the proceedings
with great detail contendng that the decree of
the Supreme Court of New York was valid aud
properly obtained. The only person, if there
was any living soul who could make COM
plant of this consolidation would be the original
Union Pacific shareholders. The purpose of the
consolidation he contended was not to pass the
trust property to the debtor company in order
that the company might Immediately hand is
ever to Messrs. Gould and Sage but the object
was to restore the property to the
debtor company, in order that
through it the consolidated company
might have the means of purchasing. as it did
purchase, property necessary TO protect 1t from
competition and to promote its interests and
those of its bondholders Judge Dillon enlarged
at great length the point that the law
OF limitations debarred all criminal proceed
ings
w. Bourke Cochran next spoke in opposition
to the complaint being received contendine in
an elaborate argument that the prosecution had
been barred by the lapse of time.
Mr. Andrews closed the hearing with an argu.
ment and citations to show that the statute OF
limitations does not apply under such circum-
stances