Worcester daily spy. [volume] (Worcester [Mass.]) 1850-1888, 1872-12-20
The settlement of COuId with the Eric
Company.

company.
New YORK, Dec. 10 The new Erie manage
ment completed to-day the most notable of its
undertakings. AT a meeting Of lhe board this
morning, there was present President Watson,
eX-Goy. Morgan, Mr.. Babcock Mr.. Cisco, Mr..
Schuchardt, Mr. Lansing, Mr.. RamSdel, Mr.. W.
B. Duncan, Mr. S. L. NJ. Barlow, Mr.. Day, MIR.
Shipper, and VIM. Z. Travers. The special
committee appointed to take into consideration
the proposal made by Jay Gould looking to the
settlement of the suits insti uted against HIM by
by the Erie company, was submitted. S. l.. NJ.
Barlow, L. d. Morgan, VIM. Butler Duncan,
w. L. rravers 2. II. Watson constituted the
committee. The report presented was very long,
embracing the full terms OF the offer made by
Gould, and concluding with the recommended.
ton that it be accepted. The report was
adopted.
The result will be a withdrawal of the suits
pending against Could upon surrender to the
board OF directors Of securities amounting at
par, value to S9,0S60 00 which sum. according
to the opinion OF members of the special com
mittee, will cover the total amount for which
the various suits have been brought.
The terms of settlement include the transfer
OF dO, OOo shares Of Erie Stock the grand opera
house, and a number of lots of valuable land,
amounting fully to 81 600 600 at current values
1t is stated that before this ling was cOnsum-
mated Gould was allowed to pick up all the
Ltle shares he possibly could in this market and
London; and that he is now the owner of some
thing like two hundred thousand shares, on
winch he expects to make more money than he
surrendered 10 the company.
This statement was confirmed by Gould him
self this afternoon, who also said there was an
understanding that he was to be consulted on
matters of importance in connection with the
business OF the road He thinks the arrange
ments now made will enable the company TO Law
the third rail on the Erie road, and to make an
alliance with the Lake Shore railroad.
1t is also stated, on other authority, that the
money derived from the sale of these securities
IS to be used in laying third rail, whereby the
narrow gauge roads of the west may have an.
other outlet to New York without breaking
bulk: and, further, it is reported Gould will
throw his influence in the Northwestern company
in favor of bringing its traffic over Erie when
the third rail is laid There is q large short in.
terest in Erie shares and it is suspected on the
street that Gould will work Erie as he did the
Northwestern common, and eventually twist the
operators on the bear side Ii is also said that
the claim of the Erie railway against Gould was
reduced some $500 on the discovery that he
had turned over that sum, the proceeds of
thirty Thousand shares of Erie stock, to the
company. The entry did not appear in its
proper place in the Erie books but it was at
length discovered and the sum allowed.
D. l.. NJ. Barlow stated to-day that the proper
~ surrendered by Gould is estimated to be of
the actual cash value of from Sc 900 900 to 81
VVV,VVv, anu WOTlH W the Erie railway company
the tull amount Of its claim. The necessary
writings were making at mis- Office, aud the secti-
rites will be delivered to-day. Mr.. Barton said
Mr. Gould received no equivalent whatever ex-
cept the abandonment OF theclaim against him
by the company Various opinions are given
as to the cause which led TO GouId's surrender,
some believing he had no other resource, and
others, that it is part of deeply laid plan to re-
gain some of his lost influence over Erie.
Friends of the road declare the semi-annual
dividend on preferred stock will be paid as usual.
In the matter of Thos St. John against the
United States circuit court Judge Blatchlord to-
day hled his decision. st, John sued the Erie
company for dividends on shares of preferred
stock held by him, on the ground that this stock
was entitled to seven per cent dividend before
interest was padton the million pounds sterling
OF bonds used in 1865, and before rent was paid
on any leases taken since January list, 1862, of
any roads worked in connection with Erie
Judge Batchlord decides against the claimed
priority of preferred dividends; holds that pre-
ierred stock is not to be entitled TO priority over
anything but common stock, and dismissed the
with pOsts