The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1872-11-30
Jay Could Arrest.


Jay Gould's Arrest.
1t might have been supposed that what
il already known of the scandalous stock I
operation" Of such men as Gould Fisk I.
4 Co, was quite ms bad as anything that
could possibly come to light on that sub.
icut. But recent developments, resulting
from the corner in tho Chicago and
Northwestern Railroad stock in New York
last week, show that there were many
worse things remaining to be told Gould,
who had been for long time a bear in
stocks, changed position aud became
ebnH, and in this latter capacity was the
chief operator in bringing about u "eor-
ner in the stock Of the Chicago and North
western, In the course of his proceedings
as bull, and in working up this Corner,
a quarrel was brought about between him
and II \. Smith, Que of his former partners
In a firm of stock brokers during the period
of the disgraecful Erie Railroad tlnnsac-
tons As sequence to this quarrel, Mr.
Smith, the partner mentioned, has been
led to disclose the dark secrets connected
with Jay Goulds management ms Prcs-
dent and Treasurer of the Erie Railroad
Company, by which Gould and Fisk and
Gould's firm of stock brokers had the use
and control for their own private purposes
Of millions of the stock Of the Erie Com
pany, and many millions ofdollars besides
In support of Smiths allegations of the
verify Of his disclosure of these secrets, he
exhibited To the present officers aud coun-
sci Of the Eric Company the books of his
firm, said firm having had the entire bust
ness of selling forty odd millions Of stock
ofthc Erie Company, aud Of which firm
Jay Gould, President aud Treasurer Of the
Erie Company, was principal partner
The statement made from these books By
the counsel Of the Erie Company, and
sworn to by Mr., Watson, is present Presi-
dent, charges Gould with the embezle-
ment and conversion To his own use of the
dred and tweuty-six thousand five hundred
aud forty-one dollars; and for the recovery
Of this sum from Gould proceedings have
been instituted against him, aud he was
arrested on Friday, and held 10 bail in the
sum Of Que million Of dollars
The stupendous sum which Gould Is thus
charged with cmbczzling by fraud, aud en-
deayoriBg to cover up by fraudulon, and
fictitious accounts, is no mere ianciiul
amount, stated in startling figures without
particulars to base it upon, but is made up
Of specific items which cover the whole Of
that amount And it is in view Of the re-
corded details and circumstances attending
the alleged embczzenent Of each Of thes,
items, that Il has been said that these las
disclosures are far worse than the wors'
the world has heretofore heard of IL,
audaciurs Operations Of the old Erie
clique Thus ii is stated first ia Mr.. Wat
son affidavit, that of nearly thirteen mil
lions of dollars realized by Gould's firm o.
stock brokers from the sales Of $40 900 ,G0i
Of Erie stock he converted and applied t,
his own use, 81 400 1872. And it Is ayera,
in the second place ia the affidavit thai
from the proceeds Of the sale Of Certain
other stocks, oi account Of the Erie Rail
road. he converted to his individual Us.
s3,06l 200, by transferring To his own ae
count on the books of his said firm O
stock brokers, that amount to make g09s
his losses by speeulntions in gold in th
memorable Black Friday period Tn
third item specified in the affidavit Is
charge that Gould took 1891 ,S5l out q
the moneys Of the Erie Railroad Conpan
tomakc good his immense losses incurred b,
his individual speculations 10 the stock o
that Co Ii is charged that he had larc
amounts Of Erie stock on hand, purchase,
in these speculatious, and that he procure
an order Of Court to authorize the Fri
Company, Of which he was President, L
repurchase, ON account of the Company
III 400 shares Of said stock, that he place
said shares un the books OF the Company
ihe average price of s6l AZ per shaF,
when the real value OF said stock was bu
SO per share, and thus defrauded th
Company out of s3,9ll SOL The fouFt
item in the affidavit embraces the sum {
s3596l2, which il is alleged that Goll
caused to be- charged to the Enc C0mpan
TO cover his losses by speculation in Rea'
ing Railroad stock The fifth item cha
ges that he caused TO be transferred To h
oun use out Of the funds Of the Compan
the sum of sl6s SOB Then follow cha
yes Of embezzlement of sundry other sma
Ter amounts, viz, the sum Of Sl3,jSO
pay expenses in securing his reelection
a director Of the Erie Company; the sul
of 500, 900 paid TO J. Fisk, Jr., witho'
warrant; and the sum Of $4,000 tran
ferred To his (G0uld's) account The
specified items close with the charge Of q
eInbezElement Of 100000, being the cl
tire proceeds Of the sale of $4,000, 000
stock Of the Erie Railroad Company.
These disclosures riyal, in the immensi
of the plnndering they allege, the gigant
figures involved in the exposure of T'we'
and his coniederaies. The existence
probable ground for such heavy and gral
accusations against the President ola proI
inent railway corporation, who oDght
discharge the duties Of his Office with q
scrupulous honesty of Trustee, Is We
damaging to the character Of Americ;
railway corporations, and casts unmerit'
reproach upon the country. 1t is ther
fore o. national necessity that the aceus
iion shall be earnestly supported by pr
ecution, so that the accused party shall
punished, If guilty, or acquitted, II Inn
eent-Philodelpln Ledgey.
-
The cost Of the Revolutionary war, FRI
the battle Of Lexington, l775, to the CO
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