, 1872-12-20
Settlement and Withdrawal Of AIl
Suits Against Jay Gould.
The Little Broker Eats Hum~
BILE Pie, and Humbly
pisgorges Nine
Millions.
important Decision in Connection with
Erie Preferred.


i VkEV&USM1V Q OAt o5AAAos &AV ~A~AA~e
Opera House.
Special Despatch to 1Ae Chicago Tribune.
NEW YoBK, Dec. 19.-The following is jay
Gould's letter to President Watson, OF the E1ls.
Company, Offering to make restitution
New YORK, Deo. II, 1872: :
Dee1 S referring to y recent 2 S TT rt5 wtd
upon me, assume that there is no longer any sui
cient reason why adjustment Of all open questions,
satisfactory and honorable to both pa1es should not bo
made. Ihaye at all hmes since my resignation As
President Of tho Erie Company been prepared to Ezs
psny, to whieh never made apy claim. In addition
to these hare held IN name both real and PER
aonal properties which intended for the use of TIE
afars .of the Erie Company during ~
with expectation Of benehting the Company through
the business to to the Foad than for any otse
moye Upon @ :, Hf ny onepz
Seons e e %s
to the Company, and that should be credited WI
Another question Of more Importance grows ont OF
Counts coz sr With h the Company at he tme Of ny WITH
drawal from the Presidency. could then have e1-
9a2ed na xh1sh nGw are r. thu
has been isaid since left the Presidency Through
entries it. could readily account for II discreran~
fts' W. x'1 fsp for nave this papose and
loss d serious embarrassment: Put
ahali ali iea7e % e. question as to ny motives iaeatoa.1
Take your own statement and you claim q 9oos
The various pieces Of real estate in NV York heT
bonds which mentioned in my lAst conversation With
you, believe you will consider worth more 70
Some Of these properties purchased with my OWN
money, and the Company has no claim upon tne1a4
but y fSg a 5e
Will il addition, convey the Grand Opera House and
Il adjacent .: RFope11bss' 1bs s,s 9@ned 10 freei
by By me- from al mortgages, to you on
receiving fuli discharge from tie Company. dg
such Questions IS Is more annoying to s than The
Of the money involved, and because am sincerel9
a93ieu7 for the success Of the Ezle Company
":ier Verv respectfuIlS. anoe . p - JAZZ GOULD.
Petsr q. Watson, President Erie Railroad.
New York, Dec. 19.-Ihe new Erie manage<
ment completed, to-day, the most notable Of its
undertakings. At the meeting Of the Board thiA
morning there we're present the President. ?: H@
Watson, Ex-Governor Morgan, Mr. Babcock, Mr3
Cisco, MI: sehuchardt 4r: Lanslng, MF; r. h4mst In.
hIr. Shippen, and William R. TraVers.
The report Of the Special Committee appointed
to take into consideration the proposal made b9
suits Instituted against him BY the E1ie Railwal
Company, was submitted. s. Z. II. Barlow, F.
D. Morgan, William Butler Duncan, ". Rx
TrAvers, and 8. Il. Watson constituted the Con4
mittee. The report presented WAS very long{
embracing the full terms OF the offer made ID
Jay Gould, and concluding with the rec0ua1
mendation that the proposition Of settlement bal
accepted
The report was adopted
The result will be tho withdrawal Of the suits
pending against Jay Gould upon the surrender
to the Board OF Directors Of securities amounts
ing to S9,086 900, which sum, according to tha
opinion Of the members Of the Special Commit
tee will cover the total amount for which tha
various suits had been brought. The terms OF
settlement with Jay Gould include the transfer
OF 60, 900 shares Of Erie stock, the Grand Opera
House, and number Of lots OF valuable land,
amounting to fully 81, 900 900 at current values
It is stated that before this thing WIS consunl-
mated Jay Gould WAS allowed to pack up all the
Erie shares he possibly could in this market.
and st London, and that he lB now the owner OF
something like 200, 600 shares, On which he e1.
poets to make more money than he surrendered
to the Company.
This statement was confirmed by Gould him.
self, this afternoon, who also said that there
was an understanding that he was to be con-
with the business Of the road. He thinks that
the arrangements now made will enable the
Company to lay third rail On the Erie Road to-
make an alliance with the Lake Shore Railroad
It is also stated, on other authority, that tha
money derived from the sale Of these securities,
is to be used in laying third rail, whereby tho
narrow gauge roads Of the West may have an
other outlet to New York without breaking
will throw his influence in the Northwestern
Company in favor Of bringing its traffic over the>
Erie when the third rail is laid.
There is q large short interest In Erie aharess
and it is suspected On the street, that jay
Gould will work Erie like Northwestern COM
mon, and eventually twist the operators On tha
bear side.
It is also said that the claim OF the Erie Rsi1.
way against Jay Gould was reduced some $780,
600, on the discovery that he had turned ovea
that sum,-the proceeds of 80, 900 shares Of Eri4
stock to the Company The entry did not ap<
pear in it's proper place in the Erie books, butt
it WAS at length discovered and the sum al
lowed.
S. L. II. Barlow stated to-day, that the proper<
ty surrendered by Jay Gould is estimated to boz
Of the actual cash value Of from $4,000, 600 to
$1,000, 900, and worth to the Erie Company full
the amount Of it's claims. The necessary writ
ings we're making at his Office and the securities
we're to be delivered to-day.
Mr. Barlow said Jay Gould received no equiya-
lent whatever, except the abandonment OF thet
claim against him by the Company.
Various opinions are given as to the causee
which led to Jay Gould's surrender, some be-
Ieving he had no other resource, and others.
that it is part Of deeply laid plan to regain
some Of bis lost influence over the Erie Road-
annual dividend On the preferred stock will be
paid as usual.
In the matter OF Thomas st. John against tho
EIie Company, in the Circuit Court, judge
Blatchford, to-day, fled his decision st. john
sued the Erie Company for dividends On ahares
Of the preferred stock Of the Company held BY
him, On the ground that this stock WAS entitled
to q z per cent dividend before interest YVES paid
on the e. .000, 900 bonds issued in 1865, and be-
fore rent Was paid on any leases taken sinca
Jan: l, 1869, Of any roads worked in con-
nection With the Erie Judge Blatchford now
decided against the claimed priority Of preferred
dividends, and holds that the preferred stock
ls not to be entitled to priority over anything
bnt the common stock, and dismiases the casa
with costs.
The foreclosure suit brought against tta
Grand Opera House is to collect balance of
?1oo, 900: due Nov: With interest st., from
Pike the holder OF the mortgages, and was
brought before the death OF s. N. Pike, her
husband. The mortgage is not connected with
he Pike estate, as the property therein belongs
o Mrs. Pike solely.