The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-05-08

nearing again yesterday In the supreme Oourt'
before Judge Brady. Jay Gould occupied back
seat in the court during the proceedings but the
soi-dtsant Lord Gordon did not put in an appear
ance. Messrs. David Dudley Field, Henry f. Knox
and Elihu Root appeared for Jay Gould, and Messrs
John H. Strahan and ex-Judge Porter for Gordon.
Mr.. Strahan was about to commence reading the
afldavit OF Gordon, which bore on all three cases
at issue-namey, In the case Of Gordon against
Gould, to show cause why receiver should not be
appointed and in the two cases Of Gould against
Gordon TO show cause why an order OF arrest
granted against Gordon by the Court should not be
vacated.
Mr. Field asked If it the intention of the Court
to argue the three cases together
The Judge said that it was with that intention
that he had set the case down for to-day.
Mr.. Strahan then proceeded to read the complaint
in the case OF Gould against Gordon, setting forth
that Gould had delivered over to Gordon, on the lst
OF last March, 600 shares of capital stock OF the
Erie Railroad, to enable him to purchase with the
proceeds or such stock a farm Of eighty acres in
Chappaqua Opposite to Horace Greeley's farm
Having read the complaint he read
AN AFFIDAVIT OF GORDON,
the defendant, which went on to state that
he always signed himself G. Gordon. That he
knew Gould ana had read his affidavit. That
affidavit was in every particular wholly false.
Gould with regard to the purchase OF any land and
ithe defendant had any such transaction with
HE never received any stock from Gould for such an
iObject. He never had any such relations with
hiOuld except as folows:--
On the 18th OF February last at the Westminster
Hotel, where the defendant Gordon was then stop
ping, Mr.. Lewis Roberts and Mr. Horace Greeley
breakfasting with him. The conversation
turned on where the defendant was to spend the
summer. Mr.. Roberts said that he had house and
grounds in Tarrytown and that he would be very
hn IN mt nf mi a
very much OF farm which was opposite his in
Chappaqua and said that the defendant ought to
he revolved the project of buying the farm in Chap
paqua over In his mind, and the 9th OF February
NE 10 opy Ne Ne nTS oyer 20 MR.
III the room wnen the original conversation took
place about the purchase OF the land. He subse-
quenty instructed his counsel, Mr. Strahan, to
make the purchase. All this time he did not even
know the plaintiff. He met him for the first time
was and liz now, an extensive stakeholder in the
Erie Railroad, owns now sixty thousand shares
Of Erie. and is interested in much larger amount
Of stock. He formed connection with other stock
holders and they entered into negotiations to pro-
cure change in the management of the road. On
March he procured an introduction to Jay Gould
Gould asked for interview with him, which he
granted We came to the Metropolitan HOTEL
that Interview told Gould that change in the
management was demanded that the line should
he given up to the stockholders, and that
the various aggressive law suits in which the
line engaged should be stopped. Gould
said, in reply that ne would do all this: that the
tine was in every branch in better condition than
the stockholders imagined; that it was able to pay
dividend Of seven per cent, and that 1t was IN az
good condition as the New York Central The de-
PENDANT then said that II this were true Gould
had nothing TO fear. He added that he would
vote for Gould's reelection himself and he
would ask his friends to do so. However, he
told him that more than words were necessary
to convince him that what Gould said WAS true
sn tn5 ne s gys Sue h as h
would put his resignation in his (Gordon'sl hands.
On the Monday after he called on the defendant
again. and remained for dinner. He there repeated
all the promises he mad made at the former meet
ing. The defendant then told MIN that the guar
antec must come from him. Gould said that the
balance sheet of the company would show that
what he had said was true. He proposed that
Gordon should join him III buying STOCK as there
doubt that there would be an immense rise
In the price OF stock when this state Of things be-
came known. Gordon refused at that time, and
subsequently Gould again asked him to buy stock
with him, there must be RISE Gordon said 'sThat
il testing my credulity and my pocket" On March .
Gould again called on him and said that there was
division in the Board OF Directors, and he believed
that Lane at the head OF Ii. He complained
that everybody was going against him. He added,
however, that he could vote on $40 900 worth OF
stock. Gordon then said he would speak to his
friends and If Gould could vote $50 DOC, 900 worth
OF stock between them they could very easily
the majority Gordon then spoke to Belden, with
whom he was acquainted about buying stock with
Gould, and he said that II he had any transactions
We then invested $4,000 each In two "calls" and
took puts for the same amounts. Just then
posed change In the administration Of Erie was
talked over and Gould and Gordon's cooperation
fully explained. Greeley congratulated Gould, told
him that he ought TO- as Gordon had laid out for
him and 0cuti Wall street. Mr.. Greeley told Cor
don that he ought TO inquire into tue cond-
were connected with Erie Gould said he would
AFFORD facilities for such Inquiries. Gould after
wards sent package OF shares OF each OF the com
panies connected with Erie, accompanied by a note
asking Gordon to take the shares as guarantee OF
good faith and to show that Ibis credulity and his
pocket were not being tested together" Gordon
wrote back note OF acknowledgment, and Gould
wrote back in reply, saying that 1T was the arst
time he had ever done anything for anybody
for which he got an Acknowledgements" At
their next meeting Gould said that Gordon's calls
would be worth quarter OF q million In short
time. Gordon said he hoped so; and Could In
reply, said that he would give half million for
them. The aggregate value of the packages which
that he would give the rest in currency Gould
then made memorandum OF the different values Of
the shares which he had sent TO him in the packages
the calculation against himself and he wrote to
Gould informing him of the error and telling him
action could be concluded Gould brought the
currency certain other shares and 900 shares
worth OF puts and calls' in Erie. Gould
At once put his resignation In Gordon's hands
Gordon invited Gould for the next day to meet
Horace Greeley. He came. and they spoke about
the farm adjoining Greeley's, at Chappaqua. This
purchase OF this farm In Gouds presence He saw
Gould on the 10th, nth and 18th OF March, and did
not see him again until the 25th Of March, That was
the day on which Belden came Into his room and
stated that Gould, Tweed, Judge Shandey and
KelsO were In room No. ll2, Tweeds room, at the
Metropolitan Hotel, and that they had warrant
for his 0jOrdon's4 arrest He handed over to Bel
den the 5000 600 In currency and the other stock
which he had got from Gould, and he gave an order
ON his PhfladelphiR brokers to give up the Ale
Qhany and OIL Creek stock which they were about
TO sell for him. He submitted TO this extorton be
cause he feared outrage. In the evening Belden
came to his room and apologfzed He told Gordon
that the parties In the next room were surprised
that the money and stock had been so easily given
up He was afterwards watched and followed
through the streets. Oh the 9Th OF April he was
arrested by Deputy sheriff Jarvis. who Immediately
went away and left him IN the charge OF speclas
not he found. They searched for Under Sheriff
stevens, but he would not take one name On the
and went his bail lie subsequently teiegraphcd
his Philadelphia brokers not to give the stock to
Gouid. He now has some one always with Nun, as
q \ In foar nf b