The evening world. [volume] (New York, N.Y.) 1887-1931, 1894-09-15
TRUST STOCK APPROPRIATED.
Suit for Accounting Begun
Against Sage and the
Gould Children.
HOW the GAME WAS PLAYED.
Action Brought to Secure the Stock,
Which Was Said to Be al
most Worthless"

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, 900 600 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 enjoned from in
terfering with the trust assets and that
n 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 Of the Denver Pacific
Railway and Telegraph Company.
The complainant states that. trusting
in the honor of Sage and Gould, he
bought $500 worth of these bonds.
. He continues In this manner:
"And now, your orator shows that the
said Jay Gould and Russell Sage were
false and faithless to their trust, ana
conceived the scheme OF taking to them
selves The Denver Pacific trust STOCK
and appropriatingfit themselves.
They did" states the complaint, IN
fact, abstract the Trust property. and
to cover their abstraction with some
show of authority employed certain
worthless devices. Col
They concocted purely fictitious
suit, which they brought In the name OF
the Kansas Pacific Railway Company,
controlled by themselves, against them
selves alone. The form OF complaint al
leges no more in substance than that the
Denver Pacific trust stock was Of but
little value, but that the mortgngor
company would like to have 1t.
"On such allegations and within seven
days" continues the complaint, they
obtained, paper signed by then in
cumbent of a New York Justiceship,
purporting 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 IL, or its proceeds, were taken by
Gould and Sage. and have ever sine,
been retained as part OF their individuai
The complaint in continuation states
that these devices are nun and vold. ana
spoliation committed by Trustees Gould
and Sage"
The complaint contends that they are
accountable for the trust property ana
It's proceeds, in all exceeding sim OF
81, 900, 600"
TIE mortgagor or successor Railway
Company paid the interest on the bonds
until Nov. l, 1893. but the latter Com.
pany has been siice then insolvent. and
Is now in the hands of receivers APP
pointed In part by the United States
Government, The Company is now In
default on the coupon OF the consolida-
FORMAL demand has been made on
RUSSELL Sage and George ], Gould. as
trustees, under the consolidated mort
gage. to institute proceedings In equity
executors of Jay Gould the trust funds
so abstracted, but they have not COM
Piled with the request, so states the
In conclusion, the complainant prays