New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-12-16
3. altman &Go
Reduced Prices
Decorated Porcelain,
At Pottery, Lamps,
PgjGStalS, Onyx Tables,
Old Silver, S S!!! PlateS'
COdDOIt, Mllt0l,
CROWN Derby, Royal Worcester,
and Vienna Vases.
18th st., 18th St. and 9Th Ave.
SUING FOR MILLIONS.
rur ACTION Is BROUGHT AGAINST RUS
SELL SAGE AND JAY GOULD'S ESTATE.

..ur ACTION is BROUGHT AGAINST RUS
SELL SAGE AND JAY GOULD'S ESTATE.
ACCORDING To THE COMPLAINT THESE MEN
sTorE TRUST FUNDS IN 1879 TO THE EXTENT
or s,mocoe-THE SOLDIERS ORPHANS
HOME OF ST LOUIS WANTS THE
FUNDS WHICH NOW AMOUNT
IT SAYS. TO silocoooc
I. J. Morrison. who represents the soldiers or-
,,o,s. Home Of ST Louis in its litigation against
ppsseu Sage and George j.. Gould. individually. and
Edwin Goud George }. Gould, Howard Gouid ana
us,sn N Gould as executors of the will OF Jay
Gould 70 recover 100000. the proceeds Of stock
abe, from, the trust created for the security OF
81, holders of bonds issued under the consolidated
marriage OF the Kansas Pacific Railroad, hled IN
the County Clerks Office Friday a lis pendens
against a large number of pieces of real estate In
This city belonging the estate OF Jay Gou.d Inc
sc,on is pending In the Supreme Court
The action brough, by the Soldiers orphans Home
demands an accounting Of the trust and the re-
roval Of Mr. Sage and also George j. Gould as 'ne
successor OF his father Mr.. Morrison AT the near
ing before the surrogate on December sald tha'
~ was the representative of all Sl.0o,00 creditor
Of Law Could md that the claim was predicated OH
,,r He went into the history OF the trust ere
Trustees BY a deed OF the Kansas Pacihc Rai!oal
connapy and were permitted to Issue Sl.Vp."o OF
bonds s,nred by mortgage various properties,
which va also lien on the railroad properly anu
on PERSONAL property given to secure the oonds' ne
-pesoral property consisted Of SovoNo Denver IA
cfe Railroad bonds.
me complaint says that on May l. 1879. the Kan
ms Pacific Railway Company executed deed OF
inst 10 jay Gould and Russell Sage as trustees.
The object Of that instrument was TO secure all per
sons who might become the owners OF certain OBJ
sa,ions 10 be issued by the company. ana which
became known az Kansas Pacihc consolidated bonus
As collateral security for the payment OF THESE
bonds the company conveyed In trust 10 GouIu anu
Sage about $1,000 shares of the capital stock OF the
Denver Pacific Railway and Telegraph COMPANY
loon the faith Of that trust cohsoiiud'eu o'''u
we're iss,ed and sold 10 the pubic and the plaintin
bcame and now Is the owner OF the bonus inc
non,,, mar value dess 81 400 of the Denver Pacihc
s,ock vss in possession of Goud and Sage as trus-
tees They became moved by cupidiiy ana irauu
a take this amour; ard apI ropriate IL 10 thelt
oxn profit and being regardless OF their trust Tor
The bondho,ders they proceeded with the lal'hiess
design
CRAFTY SCHEME OF THE TRISIEf-''
In lamar. l,so AT ;he house Of Jay Gould. the
Complaint continues. these trustees a"Nen '"e''
signature - A paper providing mat 'he Den'e'
psctc s,o,k he used for other purposes than those
sidual b.ned; Pursuant TO this crafty scheme 'hey
orevsuel mon sydney Dillon, the president OF the
Kansas Pacs6c Railway Company. 10 write theih d
letter in wh.ch ne said that the consohoate' "po,'
gage covered among other things 9s' shdres Vi ''o
capita, stock Of the Denver Pachc' ana llat "'''
shares belonged 10 the Kansas Pachc. i"e ''o0'
vas not d!vidend-paying. the letter SAID ana was
az 70 n.,,,., ,.,lne Tho Kansas Pacific Company
wished n have Il released from the trust on coh'-
ton OF substituting the securities into whch II iis'
be exchange. or other securities % equai '"'"e VI
On a covenant that II would never issue Hfs' COZ"
sebdstel mortgage bonds secured by the moTisase
I, the ey.pui in value Of the shares OF stock As
PRESIDENT Of Inc company. Mr.. Onion apphe' -
Gould and Sage for release and transfer oi inc
ssares OF stool Offering on behalf Of the company
bcomply with any terms or conditions when wouIu
hep the security OF the mortgage unimpareu !"
nue
Could and Sage wrote in reply to this that they
doubted n. as trustees. they had the power !" oo''
ply with the request and must decline 70 90 80 UNI
less Il were iudiclalIy decided that they had Inc
power or unless A competent court snou" 80 oi'ei
They remarked that they would throw no oDs'aoe
u Inc way Of such a decision.
? JUDGE DONOHUE's EXTRAORDINARY DhCI-
SION.
The Complaint further says that Jay Eouid con
uo.sd the Kansas Pacific; that ne causen CERTAIN
papers 10 BE- written out in the name Oh '"'' ~
Pahs moulded a the form or SUMMONS anu N'''P'
ms complaint alleged nothing IN substance O"'
mat II the Denver Pacific shares were deNVeren u
the p!aintin free from the trust OF the mortgage
Inc plaintiff would avail itself of an opportunity ~
use the came 10 its advantage. Nothing was sd"
N the paper 10 suggest that the trustees were 10 W
TIE benehcares Could and Sage made themse'Nes
sole defendants 20 this complaint and on January
o. 49,. they interposed paper when 'hey ar.
IN answer II merely submitted the trustees 10 ''ie
action OF the court and carefully concealed every
mng relating 10 the trustees being the PROPOSED re-
,paents Of the trust property. Three dass '"'.
seose Donohue. in the Supreme Court signed 49, so
xAea judgment purporng 10 decree thdt .nI ere
tosever freed and released from the trust crea'e'
" Inc SAID mortgage" -. -.
This order attempted prevent the issue OF ' NJ
mc oesni OF bonds authorized oy inc coded ~
SS"tSagc No property whatever was Y!onniue" 49,
pace In the trust in lieu OF me sS'v"vUJ IT, next
AZ vsr Pacific stock TO be taken from H. nj wss
me certificate OF the Denver Pacinc s'oSn d 4,
$50 IN the safe Of the Kansas Paclhc, an IT,,
ffsUuary 1880 1t taken to the Union a. ~
csympany and there exchanged for cert'h t,h
SOCK Of the Union Pacific. nearly all OF VIII VIII,
saIe issued 20 Jay Could and Russell sage, Hui
c.s%oaiy. and IL that these conspira!ors APP
Xsy MzAtsd this property without color or righ's ~
Ss suc The proceeds OF the trust stock with av,,
SkknIos premiums and Interest amount 10 apou'
sSss;1W. for which the defendants ACCOUNTABLE
~ 'or winch The plaintiff brings the action
THEY WANT a RECEIVER APPOINTED.
oeorse j. Gould The complain; saya. has neg ccied
''oueh requested 10 do So 10 institute procee'-
- against Russell Sage. against the executor"
Jay Gould. to for the benefit OF Inc
--' the proceeds of the misapproprIation. 1ne
@ ~ Drought on behalf Of more than 100 owners
x..SSne bonds. The plaintiff prays that the de-
.| n ar Iyr