The evening world., 1894-09-15
COT SN,OOO,0OO
BY TRICKERY.
Russell Sage and the Late
Jay Gould Accused by
John Quincy Adams.
TRUST STOCK APPROPRIATED.
Suit for Accounting Begun
Against Sage and the
Gould Children.
HOW THE GAME WAS PLAYED.
Acton Brought to Secure the Stock,
Which Was Said to Be al
most Worthless"
TRUST STOCK APPROPRIATED.
HOW THE GAME WAS PLAYED.

Suit has been begun in the United
States Circuit Court against Russell
Sage, George ]. Gould. Edwin Gould,
Helen Gould and Howard Gould. as ex-
ecutors OF the late Jay Gould. by L. J.
Morrison, attorney for John Quincy
Adams, Of Quincy. Mass, asking for an
accounting OF 81, 100000 worth of railway
stock trust bonds. The papers ask that
Russell Sage and George ]. Gould be
removed from the trusteeship of the
consolidated mortgage of the Kansas
Pacific Railway Company, that Sage
and George Gould be enjoined from in
terfering with the trust assets and that
a receiver for such assets be appointed.
The complaint, In detail, alleges that
on May |, 1879, the Kansas Pacific Rail-
way Company executed deed of trust
to Russell Sage and Jay Gould, as trus-
tees, to secure certain obligations known
as Kansas Pacific consolidated bonds.
and as collateral security conveyed In
trust to Sage and Gould 10000 shares of
the capital stock VI the Denver PACING
Railway and Telegraph Company.
The complainant states that, trusting
in the honor of Sage, and Gould, he
bought 5000 worth Of these bonds.
He continues in this manner:
And now. your orator shows that the
false and faithless to their trust, and
conceived the scheme of taking TO them
selves the Denver Pacific trust stock
and h SPpr Gd states the Complaint n
fact, abstract the Trust property, and
to cover their abstraction with some
show of authority employed certain
"rhey concocted purely fictitious
suit which they brought in the name of
the Kansas Pacific Railway Company,
\ a. ~,
selves alone. The form OF complaint al
leges no more in substance than that the
Denver Pacific trust stock was Of but
little value, put that the mortgagor
"On such allegations and within seven
days" continues the complaint. they
obtained a paper signed by then in
purportiug to allow the mortgagor com
pany to take the property of the bond
holders Thereupon the trust stock was
pany to Jay Gould and Russell Sage
and II, or its proceeds. were taken by
Gould and Sage. and have ever since
been retained as part of their individual
| estates"
The complaint in continuation states
that these devices are null and void and
give no color of legality to the acts OF
spoliation committed by Trustees Gould
The Complaint contends that "they are
accountable for the trust property and
It's proceeds, in all exceeding sim of
81, 900. co.,
The mortgagor or successor Railway
| Company paid the interest on the bonds
until Nov l. 1893 but ts the ns Latter COM oni
Is now In the hands of receivers APP
pointed in part by the United States
government: The Company is now in
ton bonds which fell due May :. 1894.
Formal demand has been made or
Russell Sage. and George J; Gould, a.
gage. TO institute proceedings in equit.
10 recover from Russell Sage and the
executors of Jay Gould the trust fund:
so distracted, but they have not com
piled with the request, so states tn
In cone usion, the complainant pray
that the respondents be decreed TO &C
stock and all increments; that Russell
Sage and George J. Gould be remove,
from the trusteeship Of the consoli
Railway Company; that the respondent
be enjoned from interfering with an,
of the trust assets. and that receive
! be appointed for such assets. q,
United States Circuit Court for, Russell
Sage and Edwin, Gould, and wer'
, LAY Attorney Rush Taggard, one of tn
counsel for the executors of " the Ia
| iOul0 estate, Sblu 10 an ENehii
, World" reporter this morning;
1.-THE Adams suit Is based on mainl
: the same charges on which the indici
4 ment OF Mr. Jay Gould was asked fol
{ some six years ago. The matter wa
Investigated then and an indictmen
$ refused
: This present suit has some neN
/ points. as 1t is against the executors G
the Gould estate. The reply OF the re
spondents will be denial OF all the a
legations OF fraud, though 1t will b
admitted that the Kansas PACIFIC Raj
way did appoint Jay Gould and Russo
Sage as trustees go
3 Russell Sage was too busy with SON
railroad directors meetings to be seei
lsAII lorEn 9TH hIDITIMf