“In 1876 Mr. Gould began buying Kansas Pacific stock because it was cheap. At that time stock speculators did not regard the stock as being worth anything. Mr. Gould, however, was looking away ahead, and he bought largely of Denver Pacific securities and stock and bonds of the St. Joe and Western, the Kansas Central, and Central Branch roads. All of these securities he got at a very low price, and he realized an enormous profit when they were all turned in under the famous Union Pacific consolidation scheme in 1880. For his Central Branch stock alone he received $239 per share. Mr. Gould was one of the first to suggest the consolidation of the Kansas Pacific and its subsidiary roads with the Union Pacific. He employed Solon Humphreys and Gen. Dodge to go West, look over the situation, and make a report on the practicability of the consolidation. In 1879 a consolidated mortgage was issued by the Kansas Pacific to wipe out the innumerable securities bearing different rates of interest which were then burdening the road. Jay Gould and Russel Sage were then directors of both the Union and the Kansas Pacific roads, and they were made trustees of this mortgage. Among the assets covered by this mortgage were 30,000 shares of the Denver Pacific railroad, then of little value, but which, under the plan of consolidation which Gould was then maturing, would become of great value. Sidney Dillon, who was associated with Gould and Sage in all three roads, asked them to release these stocks from the lien of the mortgage. Gould and Sage sat down at the same desk at which Dillon had written this modest request, and wrote suggesting that an action should be brought against them in the courts for the release of the stock. The action was immediately brought before Judge Donohue, to which Gould and Sage made no defense. Dillon testified that the stock was worth only $200,000 or $300,000. The order was given, the stock released, and the day after the consolidation was effected which made the stock worth its face value, or $3,000,000. Stoop & Rens, of Amsterdam, claiming to be holders of the bonds, brought the charge against Mr. Gould and Mr. Sage that they had, without consulting with the other bondholders, appropriated to themselves the trust asset of $3,000,000. This revelation was made October 17, 1877, and an effort was made to secure the indictment of Messrs. Sage and Gould. It was a matter which at once attracted the widest interest. District Attorney Martine was asked to send the complaints before the Grand Jury, but pending any action on his part, Mr. Gould started on a trip abroad on his yacht Atalanta. Then followed probably the longest rest and only complete rest Jay Gould ever enjoyed from the time he took up and pushed through the abandoned survey of Ulster county in 1852.