The New York herald., 1872-11-26
INTERVIEW WITH HENRY N
SMITH,

Yesterday afternoon, when the Stock Exchange
had closed, the writer had an interview with Henry
n Smith in regard to his position in the North
west stock matter. In company with Mr. Smith
were Mr.. Vanderpoe, one OF his counsel, OF the
firm Of Brown, Hall Vanderpoel, and Mr.. Joslyn
of the firm OF Joslyn, Bach & Co., a house in which
both Gould and Smith are special partners In re-
gard to very pointed question as to what Mr..
Smith intended to do in regard to settling his lia
billtes in his transactions in Northwestern he and
his counsel, Mr.. vanderpoel, made statements
which were in substance as follows:-
THE INTENTIONS OF HENRY n. SMITH.
Mr. Smith said ION consultation with my coun-
sci, Judge Porter, we came to the conclusion that
Northwestern preferred stock was a good legal
tender for Northwestern common, and that man
who received Northwestern preferred stock for
Northwestern common would receive in addition
all the privileges OF the preferred stock, for by the
provision under which the stock Is issued the pre-.
1erred stock Is entitled to seven per cent dvi-
dend, and then, if there be any surplus over
fourteen per cent the preferred stock is entitled to
be paid three per cent just as the preferred stock
is ten while the common Is only seven per cent.
After the preferred receives this ten per cent then
any earnings are divided equally between the pre-
In reply to the question as to how the Board
would regard any attempt to settle his tNIr.
Sraith's liabilities In this manner, Mr. Vanderpocl
and he replied In one breath, and glancng at each
other, that the Board OF Brokers had nothing to do
with Mr.. Smiths individual action, inasmuch
as Mr.. Smith Is not member OF that
Board. 'I,n said Mr.. Smith, 'laving occasion to
pay TO Garland, Martin 4 Company-the firm In
Which Gould and myself are each special partners
1000 shares, l rendered them in place OF 1000
shares OF common 1000 shares OF preferred stock.
Garland, Martin 4 Co. were long' OF stocks Tor
Jay Gould. They were his brokers and borrowed
from me upon this stock, giving me the right to
use of IL aud not obliging me to return the same
certificates. When was called upon Tor the stock
l returned to them 1000 shares Of the preferred
stock, and they said they were not authorized by
their principals to receive It,"
HOW BARLOW CONES IN.
Mr.. Smith explained how he happened to be
drawn into the difficulty. IL was not through
stockiobbng. Oh, no. certainly not! Mr.. Barlow
sent for hun about two weeks ago. AT Mr.. Bar
lows residence he, Henry N. Smth) met Mr. Bar
low and j. H. Watson, President OF the Eric Rail-
road. He tMr. Smith) was then informed by Mr.
Watson that the books OF the Erie Railroad Com
pany showed that there were some fifteen
millions OF dollars which Mr. Gould had mis-
appropriated, and that the suspicion was
universal that ne (Mr. Smith) had just as much
TO do with the fraud In this AFFAIR as Mr.. Gould
had. aI.n said Mr.. Smith, "assured Barlow and
watson that the firm of Smith, Gould n Martin
were simply bxokers for the Eric Railroad Com
pany; that I had never secured dollar OF money
belonging 10 the Erie Railroad Company except In
the legitimate way OF business, and that did not
believe tina, Mr. Martin hau."
81 an gola. 10 contest this thing IN the Courts"