The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-02-26
ERIE TN WALL STREET.
The Hannibal and SIT. .JO-
seph Game.
History Of the Confederate Houses Engaged
Three Blind Mice-A Memorial to the Stock
Exchange on Which Action Should Be
Taken-An Eternal Vigilance Com
mittee May Become the Price
Of Financial Liberty.
From the New York Tribune, Feb. 81.

From the New York Tribune, Feb. 21.]
TO THE EDITOR THE TRIBUNE
SIR-That reform is the order OF the day here.
about one can scarcely believe, for the worst
"reminiscences OF the Old Erie days are revived in
surreptluous and illegal issues stock by railway
managers, and the authors are still seen in Wall
street. not arrayed in the fanciful garment or tar
and feathers you would naturally suppose. but vex.
Ing the air with the smell Of new clothes and show
ing themselves brazenly IN seats in the Stock
Exchange, as though they had done norhing Of
which to be ashamed. You will wonder that this
should be when 1 show you, briefly as is consistent
with an Intelligent understanding OF affairs, what
The Hannibal and st. Joseph Railroad is one
whose stock has Tor years been conspicuous among
the "lancie5." 1t PAID no dividends but was under
Boston management, embOdying the same interests
that controlled the Michigan Central and Chicago.
ments mad been put upon the road, it had a very
valuable land grant, and the day was supposed to
reimbursed for their long and patient waiting by q
large stock dividend and regular cash dividends
was selling at l2O but by degrees blight came and
1t dred to par and below Finally the trial OF Tam
many came over IT. that reckless chieitan me great
Tweed-emoarked his fortunes and those OF the
numerous savings banks under his CONTROL
from Boston control into the hands OF the
Erie Ring represented by Smith, Gould
with vengeance! Yet persons who mad bought
and paid the stock at high fgures still chung to
1t with piOus trust in its intrinsic value ana de-
lusve hope that dlsreputabIe rascas at the last
gasp OF existence as railway managers might be
as possible, the bad record OF their past lives But
few weeks since 1t became evident to the Street that
We're snort, Of the STOCK very largely that Is to say,
they had sold large amounts which they dld not pos
sess. trusting to De able to buy 1t In at much lower
e.
f! preston, thus pr0itlng by the difference Nice
work inns fol officers OF road to be engaged IN
| plain few DAYS since by the Sudden announcement
that they had issued $4,000 shares 'of sstock,
from IRON Duncan Sherman 4 Co.'s 10 the fenih
National Bank. the later beng pure tperhaps
even have the decency TO make a pretexl OF
| explaining what the new stock was issued for;
holders mol o'o ana dealers were favored Wiln. You
viii better appreciate the sublime audaclty OF this
davis oc reS III Of S6
contemplated increase OF stock But what cared
these railroad.pads for rulers or rights Fortu-
change laced this rogue's music for once, and i'm
mediately announced That the new issue was not a
| thieves and their brokers had been borrowing
the old stock to make their deliveries, In.
tending to pay off the lenders with these new
certificates representing more than doubled cap
lta aud then call the thing square, What did the
hnnDly ask on their knees that they might not
be kicked out OF their seats at the Stock Exchange
| Not a bit OF it. Accompanied by a notary and
witness they made the tour OF the street, prof.
| Ierng to the persons OF whom they had
| borrowed good and genuine stock these new and
| worthless certificates Of illegal issue and taking
| note OF each refusal to receive II. How high was
that 1t certainly seems to me that the subiimity
| lon Borrowing good money. as 1t were, and then
calling nigh heaven and notary to witness
that lenders refused to receive VIGOROUSLY
| terfeit money In return
| what recourse had the innocent lenCers OF good
nr s n Son ash rho oay one 10 Sny e
under the RUE. This Is quite as terrible as the
threat to name names" by the speaker Of the
! them Simply sold the stock when bought In for
their account, and uefaulted again In Its delivery.
And they were neither mobbed nor punished you
| ask Neither. Barefaced robbery has become so
common Wall street that It excites little wonder
and very incOnsideraoe indignation. Ana the rules
! of the Stock Exchange here seem at fault. Buying
in the stock for the account OF the deaulters was
no punishment, as 1t only enabled them to cover
their shorts without paying the usual commissions.
| The only persons who suffered at all were the innO-
cent lenders or good stock.
| To 90 back now and begin at tho beginning, to
give you fair and clear understanding OF how the
game was ,s worked now became possible to play
nicaton sent by great and good house to the STOCK
EXCHANGE, which VIII presently be introduced
were jay Gould, Henry N. smith and 3.
+. Carver 1t Is scarcely necessary to explain
| who Mr.. Jay Gould Is; you nave heard OF him be-
| fore. That Carver mas Gus IRON Otner places, the
name would indicate, II his record dd not establish
lne IdCt, he was O"shici vi u uihh III OHi-
cago and the rise progress decline and end OF that
| institution 1t Is unnecessary TO recite, In
| the light OF later ILLUSTRATIONS OF this gen.
| tleman's financial abilities and possibilities. With
! the name OF Smith you are perhaps somewhat
familiar. This gentleman ~ now President OF the
| Hannibal and st. Joseph Railroad, OF which Mr.
Carver Is Vice. Mr. Smith was not wholly uncon
nected with the ancient and nsh-like firm OF smith,
Gould Martin.
that perhdious bark
Butt Il the eclipse and rugged wi b curses dark,
of which you may have read. This firm men,
toned In connection with the Black Friday busi-
ness. or late Mr. Smith has Doen sngularly fortu-
nate; he fed full as raven ON the Chicago disaster
the panic WINCH followed that fire giving MIN pro-
iii on his s.shorts OF ten to twenty per cent, where
e expected at the most two or three, and he seems
! work on his part. Certainly the Falcs have
| favored him strangely Tor some tlme but
! all the while that Clotho and Lachesis
| spin golden thread for a mortal-even though he
! be one OF the proud Smith family-the shears OF
Atropos are not lar distant; tue fatal, final snip
comes at last. The Ides OF March are near Or late
| Mr.. smith has been the ''bear' side; II turns
out that he it was who instigated the recent nves
tgatlon into the affairs OF the Pacific Mail steamship
Company, In desperate endeavOr TO break
the stock, setting up The captain VI some canal
boat which he owns or controls, 10 agitate legls-
| lauve waters at Albany. 1--WE ind nothing TO con-
| demn but the authors OF the invcsrgation," was
Smtn may be nice little man enough, yet many
| people who walk more circumspectly walk less con-
sequentialy. But to return 10 our Legitimate NUT
ton Satisfied perhaps, with the pleasant nOtorety
acnicved In the Black Friday gold affair, and able
10 boast tnat II was never guilty OF single square
transaction. the house OF Smith, Gould Martin
gracefully retired from public benefacti0n and the
| 4 pacn