The New York herald., 1872-12-20
How the Compromise Was Suggested
and Carried Out.
ERIE STOCK SHOOTING UPWARD.
How Wall Street Wondered
and Was Agitated.
TIE TERMS AND THE CORRESPONDENCE.
"Hands All Round" and Every
body Happy.

body Happy.
The Erie Railway Company yesterday achieved
the grandest triumph which has ever yet fallen to
the fortunes OF that redoubtable corporation by
receiving the virtual surrender or restitution on
the part OF Jay Gould OF property belonging to the
company amounting in value to over nine million
dollars.
1t has for years been matter OF public gossip
and nOtoriety In Europe and America that Jay
Gould, as President, and the late James Fisk, as
Vice President and Comptroller of the Erie Rail.
way Company, had run the concern to suit them
selves generally, and that the greater
portion OF the vast property they were
supposed to own was purchased out
OF the funds OF that corporation. The first tangible
evidence Of the fact, however, was presented only
few weeks SINCE when Henry N. Smith, former
partner OF Gould, quarrelled with his old associate
and virtually turned States evidence against him by
submitting to the new management OF the Erie Rail-
way certain books and statements which purported
TO show that Jay Gould had converted to his own
use property and funds Of the company valued In
rough figures at nearly ten million dollars. As is
well known, the company, upon Smiths repre-
sentations and evidence, commenced Suit
against Gould for the recovery OF all
these properties and funds, and he was
held to bail in $1,ooO,Ooo to answer the result O,
the action. 1t is equally well known also how Jay
Gould almost Immediately furnished the required
bail and
WENT BACK FROM THE sHERIFF's OFFICE
20 Wall street and managed his stock
operations in 'Northwestern CommonD as
TO squeeze" Mr.. Smiths pecuniary life
almost out OF his body. besides sn-n,y
crushing Daniel Drew and other monetary masto.
dons. 1t is asserted that Gould netted So ooO, 900
as the modicum Of sweetness which made his re.
venge peculiarly enjoyable. In prosecuting their
claims against Mr.. Gould the Erie Company discov-
cred that the ex-President had some time
prior thereto turned over to the com.
pany $65o,ooo, the proceeds OF the sale
OF 10000 shares OF Erie stock, sold by him on &C
count OF the company when the stock stood ut
about q or 21H, and this reduced the claim as
maintained up to yesterday to $s,ose,oo
On Tuesday last, IN his capacity as President OF
Che Erie Railway Company, Mr.. Watson received
the following letter.
NEW York, Dec II, 1871
Mn
f .ssp $ e s.Ss Ssi
S0'a s sa use snS Of s Er h
ZEAL the a Of % Erie 70 %ss. ss
rs Es e.
s;iS %
ds Ss sScaa a"hsT os ssss credited
IL Ssss Ss
rs q
,S%sss nc ssia
SSa hsvs sDs s POINTED @ out e me- wss
leave Question mot motives Or sRte a' sha
I Hs sHsea eHa ~h 'S0as Soa
these ss' ss ss's ;s%
S sas they 1s fed n.sss s
and ~ aaaonp shsss peoD
s By & ans MSrf % he
ne from all mortgages to you on receiving full dis
this for the sake peace because any litigation Of
sn Y me than the loss q
Tor the success Of the Erie Company, In which have
Tlssss st Know speedily possible whether this
TO PEr.n q. wArsox Esq, President Erie RAILWAY.
This remarkable communication really put mat
MOST FAVORABLE LIGHT
30r friendly Negotiation, and was replied to by Mr..
.
orncn ERIs RAILWAY CourAEY, /,
NEW foRR, Dec. H. ls72
q which Ci A a once nee submit 70 ,hs special
e.npo. s.y what thsiI .ctiOn win Be; but salts
cn and @
q sS s ss and S. x. N as
critics in question fully equivalent in value 70 lie
company 70 iw claims against you Of every character
v communicate their action Co you not doubtna that
they will consider your offer. do fair one under
2 view should be accepted in interests Of the stock
'ns he company aeT% ssspsStqlly prs,d.,.
About noon yesterday rumors OF the consumma.
as was contemplated In the above correspondence
reached Wall street, and a. proof OF the verify OF
ERIE STOCK JUMPED UP
all directions for confirmation OF the rumor and
one stringent proofs was held TO be In the fact
tnat special and extraordinary meeting of the
1irect0ry OF the Erie Company had been held In
sneir ,s omces az the Grand Opera House at ten
O'Clock yesterday. HBRALD reporter visited the
majestic marble pile at the corner OF Eighth
avenue and Twenty-thlrd street In search Of
fresident watson, to learn from him the fa cts in
ten 70 ,ne aaar. Matters looked very dull at
pIesslve lack OF that hustle and regal display Of
Attenuants and furniture which marked the NINA
ing when Prince Erie ruled the road and made tho
Opera House his palace 10 '"0
The youthful ushers informed tho renortor .no.
Prestdent Watson had gone down town !; tba, the
Vice President was In the country or AT least nor
20 tne CITY, ana tnat the Secretary also was absent
chase down to Wall street In search OF the Presi
lcnt ola BOT look inviting when II was constdered
that by the time the reporter reached that
. PANDEMONIUM OF CLIeKING CASH
NJ WATSON mjgbt haye "gone up town. An a |