New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1872-11-23
WALL-ST. SHUTTLECOCK.
JAY GOULD ARRESTED BY HIS ERIE
PARTNER.

STARTLING SEQUEL TO TIE GREAT CORNER IN
CHICAGO AND H-WEsTEkN--JAt 1oOLD
CHARGED WITH EMBEZzLING OVER NINE
MILLIONS UNDER THE OLD ERIE DIRECTORY
THE EFFORT OF THE BEARS TO BREAK
THE MARKET FAILURE-OLD FOES IN ALI
ANCE AND OLD FRIENDS AT ODDS-TuE
LEGAL PROCEEDINGS.
Wall-st. enjoyed series of thoroughly startling
sensations Yesterday which eliminated in the cor
nerincr of the common stock Of the Chicago and
North Western Railroad Company, and the arrest
Of Jay Could ex-President of the Erie Railway
Company. amid great excitement in the street
Both circumstances grew out of stock operations,
and the severance of old and the formation of new
speculative ties by men notorious in the annals OF
Wall-st., who having preyed upon the unfortunate
outsider in Wal-st for so long time, nave eG-
hausted his resources, and, having no other game
have fallen upon one another The events prove
that stock speculations like poverty, make strange
associates.
For years past the stock Of the Chicago and North
western Railroad Company has been one of the most
active on the list Of the New-York Stock Exchange
In the latter yea Of the life of Henry Keep, one OF
the heaviest and most successful stock operators OF
his day, the stock Of this company was controlled
by him, and at his death passed into the hands OF
prominent Broad-st. operators
Within % short time the bulk of the Common stock
appears to have passed under the control of what
the relatives, friends. and adherents of Com
modore Vanderbilt, such as Horace T. Clark,
Augustus and Richard Schel who lave been
generally credited with desiring 70 obtain pos
session Of the road as it extends from Chicago 10
Omaha, and forms connecting link between the Union
Pacific and the Lake Shore Railroads Of both OF which
roads Horace F. Clarke, son-inaw Of Commodore van
dCTbiit, is President
OLD FOES NEW ALLIES.
nv skfuful rpaupulatou the Vanderbilt party sue |
ceedcd in promoting short" interest in the stock, Of
which they owned the greater part This short or
bear" interest consisted Of Daniel Drew and Henry N
Smith, the latter being the head Of the former house OF
Smith, Could Martin & Co., OF which Jay Gould was
also an active partner. This house finally dissolved, the
members forming several other houses ~ order |
that they might extend their operations. = Henry |
n. Smith. and Jay Gould became special partners IN
the new houses and furnished large amount OF capital
They remained as before the heaviest Spectators the
street. and generally interested in the same opera
tioIs. At the time that Jay Gould was ntrenchcd at
the Grand Opera House. prior 10 his being ou2ted By the
Bar low administration, Henry y. smith acted as his |
executive, carrying his orders taking command OF the
detachment OF police which had been sent TO the Opera
House TO defend Gould, posting them al all points OF de-
Tense AID ordering them to admit but the adAeT-
ents OF Gould.
But the best Of friends Will sometimes quarrel and
such Wa case with Gould and smith; and when the
latter, with Daniel Drew, went short" OF Northwest
common JAY GoulI olItusc 10 say MCit 'fNA ~ 'hN
ranks Of MS former opponent, Commodore Vanderbilt;
and stn Stranger his oilers OF assistance accepted
by H. C'tme Zoe. For days past Jay Gould has been
Close hours at time with Horace +. Clark and
August, >che al the Office Of the Union Trust Company
al Pc oi-st and Broadway. where the details OF tho
corner Northwest perfected, and the probable
discontinue Of Smith and Drew dwet upon with
great amusement On Wednesday the prlce OF North
west Common was Ssh and in the afternoon II had adj
vanced TO % after interview between Jay Gould,
his broker, Osborn Chaplin, and Horace F.
Clarke Til, was the beginning OF the twisting OF the
bears" smit and Drew and the stock market closing,
further operations deferred until Thursday when
the stock advanced TO The excitement was intense
and d "c0gner" inevitable.
TIE BULLS VICTORIOUS.
Early Yesterday morning the corner became the all
sorbng feature the street. The price opened at $751;
sold down 10 o. but reacted rapidly the purchase Of
only about 400 shares aud within two hours rose like
rocket until al the close of the market at D. m 200
was bid and stock offered At this time the widest
excitement prevailed. Smaller dealers who were |
short the stock rushed frantcany into the Ex-
change and essayed without success to purchase the
stock and cover their efforts" One broker who |
wished % buy only 100 shares OF the Stock said |
that he must have stoc and that be would give the
market value f0ri at-ewhat was but ne ana not
succeed In getting it. Throughout tho corner" the
adrot nanipua ION Of Jay Gould and his operators was
visible to the proctc-d STOCKHOLDERS eye and was aD-
precated by none kceny than by his late partner,
Henry ~ Smith, who was thoroughly alarmed ana !
shagrined at the position in which, he had been |
placed. His fertile mind accustomed TO uyns specu-
atiye situations reyoved the matter, and with view
70 revencog himself upon Jay Could possibly breaking
the corner" and reducing the price, which was then |
below 100 he placed himself in communication with 5.
L. NJ Barlow one Of the directors, and counsel OF the
Ere Railway Company, and impaired TO him informa
ton relating Goulds operations while President OF
Erie.
MT BARLOW Immediately awaited himself OF the iniOr-
nation and with his partner Mcfarland. spent Thurs
day IN drawing up the necessary papers upon which
they intended apply behalf Of the Ere Railway for
All order Of arrest against Jay Could for frauduenty
sInbezzling 50 726 SAL 20, while acting officer
Of the Ere Railway.
An order OF arrest granted at about 2:sO p. m,
Yesterday by Judge Fancher Of the Supreme Court on
The application Of Mr. LarOcQue Of the firm OF Barlow,
IArocque & Macfarlaud. The order was Immediately
taken 20 the shers Office by Mr. LarocqHe In person,
and deputy was procured to make the arrest with
view 10 prevent Mr. Gould from evading the Sheriff,
counsel accompanied the deputy to Goulds Office in
waIl-st where they arrived about $3.50 p. 40 Mr..
Gould al his Office short time previously Mr.
Isrocque remarked TO those in charge hat ne might as
well surrender himself az once. MT. Could soon ap-
peared at the Shers ONCE, accompanied by horace r
Clark and Augustus scheli who mad consented 10 De
100000 The suretes justified in $4,000 each, where
upon Mr.. Gould was set at liberty;
Counsel for the Erie Railway Company were cot con
suited IN the matter Of ball aud intend 70 object 10 Tue
s9rees az not having justified IN s1ciSn toS the
ball. but n the present cast although the
placed million dollars, the sureues have only
justified both together in that amount.
GOULD SHOWS HAND
When the arrest Of Jay Gould became generally
known, the fact that Horace +. CT ark and Augustus
Bche had become his bOndsmen removed any DOUBT OF
his connection with the Vanderbilt party and OF BIS rup
with smith Many prominent persons hastened TO
offe Mr. "A than lqfn I'm