New-York tribune., 1888-04-12
THE GOULD-SAGE CASE.
NOT TO GO TO ANOTHER GRAND JURY.

Recorder Smyth filed his decision yesterday on
the motion made by DistrictAttorney Fellows
several weeks ago that the criminal complaint
against Jay Gould and Russell Sage be again SUBJ
mtted to the Grand Jury The Recorder denies
the application, and in his opinion reviews the
steps taken in the prosecution of the complaint.
District-Attorney Marines opinion the proceed
ings before Judge Cowing, including Judge Cow
ings advice to the Grand Jury, and the present.
ment of the Grand Jury are quoted in the Re
corder's opinion. The Recorder continues:
1t has been frequently held that when bill of indct
has been ignored and new bill sent to the
Grand Jury and without the leave of the It
should promptly qusshed in the absence OF Affirmative
proof that the taken was required to meet some
grave emergency provide for urgent public need
(Rowand the Commonwealth SO, Pennsylvania State
Reports z05; United States Farrngton fifth Federal
Reports 33) Applying this rule 70 the facts presented
upon the present application, unable TO convince
that there should DO resubmission Of this
based upon the facts upon which am asked to act
1t does appear sfrmsvely FIRST, that all the evidence
bearing upon the alleged offence had been presented
TO the Grand Jury Of the February term.
and that every witness having any knowl.
edge tending establish the commission OF
the alleged criminal offence tho guilt Of the defendants
has been examined with unusual care and that there
facts existing and within the reach OF the District
Attorney in addition the evidence already presented
upon which he could lay before another Grand
Jury The statute requires that when application OF
this character is made sufficient reasons must be as
signed which will induce court to order the resubm son
Of the complaint
THE DISTRICT ATTORNEYS ADMISSION.
Here the Dls,rctAttorney expressly comedies that
there additional facts which he can present. and
also that the Grand Jury acted the facts before
them under proper legal advice bearing the facts
eliced upon their inquiry into the alleged crime Nor
IS anything suggested from which could even infer
the Grand Jury have acted improperly in arriving
conclusion the charge should be dismissed.
n mis- theIr in he
upon The OF such have been presented
this application. ! would be dong very great inius-
tee. II seems 70 me, were L TO direct the same
case upon the evidence and without
suggestion Of either ignorance msconcep-
ton the part OF the Grand Jury who
acted upon IT, to resubmt It another body Of grand
Jurors for the mere purpose Of renewing the action Of their
predecessors. The practice OF renewing complaint be-
fore subsequent Grand Jury after previous Grand Jury
have fully examined into the facts of the be
commended. The accused and the ought a
general rule abide by the decision OF the Grand
Jury who acted the complaint To these
ncessant complaints founded upon the charge where
the the friends OF the accused believe that the
eTst Grand jury have mistaken their duty (which it not
even ntmaed In this has been done) would lead
dsgscefu scramble between the enemies and friends of
the accused wSich would be fatal firm. steady
partial administration Of criminal justice. and It is the
duty of the Court discontinue the practice OF resubmlt
ting the case TO another Grand Jury the evil
ience upon which former Grand Jury has scted
absence oil proof o: either grievance misconduct
upon the Of the former Grand Jury The People
Van Horn, sth Barbour, 1881 No grounds having been
suggested by the Attorney which will authorize
it'ubmssion OF the complaint k,ien t, another Grand
Jury, the application to do be denied.
District Attorney Fellows said that he was per-
fectly satisfied with the Recorders decision. Mr..
Fellows considered that his own position all
through the case was unassailable.
MR. GOULD WAS READY FOR INVESTIGATION.
Jay Gould talked with his usual plscidty Of
Recorder Smyth's decision. IL is no more than |
/ had every reason TO expect" said he. Two |
Grand Jures had already refused TO indict and |
by unanimous vote. | perfectly willing to |
stand by the fullest investigation of the transac-
tions involved in the management of the Gould
Sage trust. This man Andrews Mr.. Gould went
on blaAdly, "who has been protesting to act in
the interest of certain very daphanous bondhold-
ors, has come out in the Gould-Sage matter some
thing after the fashion which befe him in his
attacks ON the New-York Life Insurance Company,
when he played the same role, in the profesSed
interest then of certain policyholders.
There is one phase of this matter which is
really amusing, however. l understand that the
brilliant articles in the news columns of The
Herald including even the erudlte talks with
the wicliedness of the Gould Sage trust, espc
cialy that alleged conversation between an eX-
judge and leading lawyer overheard in an
elevated railroad car, were all prepared by An
drcws and typewriter at the Hoffman House. /
speak of this" said Mr. Gould, as he walked to
the ticker and smoothed the tape out between his
fingers, merely to call attention to the kind Of
offensive and defensive alliance formed by James
Gordon Bennett in his attacks on me for not al
lowing HIM special favors over his newspaper
contemporaries in telegraphc and cable rates
and IN priority OF service"
TALK WITH CHARLES FRANCIS ADAMS.
Charles Francis Adams, who passed through the
city yesterday was seen just before he took the
train, and was asked what he thought about the
trust. Mr.. Adams thought intently
few minutes, and then dictated the following:
e do not sec why need say anything under the
as Recorder Smyth has decided that
no action will lie. / am unable to see wherein
any wrong has been done to the trust and eer-
ainly none has been done to the Union Pacific
n the handling of the Gould-Sagc trust. All that
have been able to ascertain with reference to
ihe transaction leads me to suppose that certain
securities the Denver Pacific stock, which had
10 value whatever in the trust were released by
,rder OF the court and the bonds issuable against
jhe trust were released proportionately in amount
by cancclling 100000 OF theml | have been
Unable to that the trust was injured or re-
luced by this transaction These securities, which
n themselves were worthless, were then, after
hey were released, converted into stock of the
vas free act of the Union Pacific and which the
Jnion Pacific could not have been compelled TO !
AXE, gave the securities their whole subsequent s
market value. Before the conversion took place
hey had market value. The Union Pacific
hen conveyed portion of this converted stock ss
o Mr.. Gould in exchange for certain other @
urties also valuable. By the transaction. as it
fterward turned out, the books show that the
jnion Pacific made handsome profit, probably | J
ome 80 per cent.
MR.. GOULD's CONNECTION WITH THE CASE. I
II Mr. Gould had not been the trustee. do t
lot see that the transaction could have been oues s
ioned in any way; it was one advantageous TO
IL concerned. AS Mr.. Gould was trustee and /
vas dealing for himself Individually with securities
elonging to tue trust, the burden of proof is on
i'm, in the transaction is questioned. TO show
hat his trust received injury through the a
transaction. Ny own investigations have led me I
0 the conclusion that this could be- shown. / am 1
lear that the Union Pacific which / represent,
enefted by the transaction. The Kansas Pacific
rust | do not represent. but have been unable q