The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1872-11-26

TIE ARREST OF JAY GoULD-Exc1rEmEsr
IN THE SroCK MARkEr.-The arrest In New
York, on Friday last, of Jay Gould, the de-
posed president of the Erie Railroad Com
pany, upon warrant sworn to by P. FL.
Watson, president Of the Erie directory, and
Henry N. Smith, of the house of Smith,
Gould, Martin i Co., president of the Han
nibal and St. Joseph railroad, in Missouri,
and one Of the directors of the Tenth Ma
tional Bank Of New York, upon charge of
embezzling S9,726,551 belonging to the Erie
Company, has been announced. The arrest
is attributed by the friends Of Gould to the
"cornering" of the common stock of the
Chicago and Northwestern Railroad Com
pany, which, it is asserted, grew out of stock
operations, and the severance of old and the
formation Of new speculative ties by men no
torious in the annals of Wall street, who,
having preyed upon the unfortunate "outsi-
der" in Wall street for so long time, have
exhausted their resources, and, having no
other game, have fallen upon one another,
and to whom Smith, the Late partner OF
Gould, is said to be opposed. The offences
charged date from August, 1868, to the 22d
of November, 1872, during which time Smith,
one of the atlantis, was a partner of Jay
Gould, and the information upon which the
warrant was obtained is said to have been
derived from the books of that concern. On
the other hand, it Is asserted by.President
Watson that his information was not COM
pleted concerning Jay Gouid's transactions
until Thursday night, the day previous to
the arrest, and that, therefore, the theory
adopted by Gould's friends is not correct.
s. L. III. Barlow, one of the Erie directors,
also states that valuable information which
they had just been able to obtain from the
books Of Smith, Gould, Martin & Co., led to
the arrest at this time; that information
showed that Gould has personally robbed
the Erie road Of $l0,000,000. Mr.. Barlow
added that Gould was concerned with Au
gust Schell, Horace T. Clarke, and others in
q gigantic stock speculation in which $780,
600, 900 is staked; Gould's interest being
$15,000,000. Another Erie director said this
was but the first instalment of revelations to
be made. 5,..rf.- Up ~ .... .-.s. s.,....-..
1t was not supposed that the attempt
against Gould in the Chicago and North
western transaction would be successful,
which seems to be confirmed by the fact that
Smith on Saturday refused to settle, and not
share Of the stock was bought on his nc
count. Vanderbilt is believed to he at the
back of Gould, from the fact that his son-in-
law, Horace T. Clarke, is one of the bonds
men in the Erie suit. s.s-.,...
It is known that Smith is short Of the
stock to an amount exceeding 10000 shares,
and that Drew is in a, similar position as re-
CARDS upwards Of 900 shares.
Considerable excitement existed in the
stock market in New York on Saturday.
Northwestern sold first at 155, then at 150,
down to 145; again at $50. Later in the day
Northwestern common stock was sold under
the rule for parties who refuse to settle; forty
three thousand shares, to kenoon, Cox &
Co., of which Daniel Drew is special partner,
for s. cash. -..-E..--- - .--..I IL -.