The evening world., 1894-09-15
COT SII,0oO,000
BY TRICKERY.
Russell Sage and the Late
Jay Gould Accused by
John Quincy Adams.
TRUST STOCK APPROPRIATED.
Suit for Accounting Begun
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"

Sult mas Deen DeBun 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 trusteeshlp 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 Of the Denver Pacific
Railway and Telegraph Company
The complainant states that, trusting
in o, the b ho aoo of Sage and Gould he
He continues in this manner:
And now, your orator shows that the
said Jay Gould and Russell Sage were
IdlSe ana IdltnleSS TO tnelT trust, ana
conceived the scheme of taking to them
selves the Denver Pacific trust stock
and appropriating 1t themselves" .
They did" states the complaint. in
to cover their abstraction with some
show of authority employed certain
wort HESS devices.
They concocted a purely fictitious
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
little value, but that the mortgagor
company would like to have 1t.
"On such allegations and within seven
obtained paper. signed by a then in
cumbent of a New York Justiceship.
to k to he the II S bond
holders. Thereupon the trust stock was
passed through the mortgagor, COM
pany to Jay Gould and Russell Sage,
and IT, or its proceeds, were taken by
Gould and Sage, and have ever since
been retained as part of their individual
| estates"
that these devices are null and void, and
| ''give no color OF legality to the acts of
spoliation committed by Trustees Gould
and Sage"
The complaint contends that "they are
accountable for the trust property and
It's proceeds. in all exc. "ding sim OF
| $ll 900 co.,
The mortgagor or successor Railway
Company paid the interest on the bonds
until Nov. /, 1898, but the. latter Com:
pany has been 81 ice then ihsolvent, and
pointed in part by the United States
Government: The Company is now in
default on the coupon OF the consolda'
ton bonds which fell due May :. 1894.
Russell Sage and George ]. Gould, az
trustees. under the consolidated mort.
gage. to institute proceedings in equity
to recover from Russell Sage and the
executors of Jay Gould the trust funds
so distracted, but they have not com
piled with the request so states the
In conclusion, the complainant pray;
that the respondents be decreed to &C.
count for the proceeds OF the Trust
stock and all increments; that Russell
from, the trusteeship of the consoli.
dated mortgage OF the Kansas Pacific
Railway Company; that the respondents
be enjoined from interfering with any
be appointed for such assets"
United States Circuit Court for, Russell
Sage and i Edwin Gould 9Sl ,rn and s were
duly acknowledged.
r RH hs .TssSsoT. OF of
Gould estate. said to an Evening
| World" reporter this morning:
THE Adams suit is based on mainly
the same charges on which the indict
ment Of Mr.. Jay Gould was asked for
some six years ago. The matter was
Investigated then and an indictment
| refused.
This present suit has some new
points, as It is against the executors OF
the Gould estate. The reply of the re
spondents will be denial OF all the al
legations OF fraud. though II will b.
| admitted that the Kansas Pacific Rail
way did appoint Jay Gould and Russell
Sage as trustees
! Russell Sage was too busy with SOM
railroad directors meetings to be seen