Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1872-12-20
ERIE.
Meeting Of the New Management Of the
Erie BUsiness-RepOrt Of the Com
mittee on Jay GOuld's Nine
Million Proposition.
GOuld's Proposition Aeeepted-A SynOp-
sis Of its Conditions Happy.
Gould ReiOiceth.
Various Surmises as TO the Results Of the
Transaction On the Prosperity Of the
ROad-Causes that Led TO
GOUld's Surrender.

New YORK, December 19.-The new
Erie management completed to-day
the most notable of its undertakings
At a meeting of the board this mornin g
there We're present, President P H.
Watson, Ex-Governor Morgan, Messrs.
Babcock, Cisco, Schucdaadt, Lansing,
! Ramsdell, NJ. B. Duncan, 5. l.. NJ. Bar
low, Daley, Shipper and w. r. Thoma.
A report of the special committee ap-
pointed to take into consideration the
proposal made by Jay Gould looking to
a settlement of the suits instituted
against him by the Erie Railroad Com
pany was submitted. 5. l.. M. Barlow,
E. y. Morgan, NJ. Butler Duncan, w.
r. Travers and p. II. Watson cOnstitut-
ed the committee.
The report presented was very long,
embracing in full the terms of the offer
made by Gould, and concluding with a
recommendation that the proposition Of
settlement be accepted. The report was
adopted.
The result will be the withdrawal of
the suits pending against Gould upon
a surrender to the Board of Directors Of
| the securities, amounting TO nine mil
| lion and eighty-siX thousand dollars,
which sum, according to the opinion of
members of the special committee, will
cover the total amount for which the
various suits have been brought. The
terms Of settlement with Jay Gould in
clude the transfer of sixty thousand
shares of Erie stock, the Grand Opera
! house, and a number of lots of valuable
land amounting to fully seven million
| dollars at current values.
| 1t is stated that before this thing was
| consummated Gould was allowed to
pick up all Erie shares he possibly could
| in the market and at London, and that
! he is now the owner of something like
| two hundred thousand shares, on which
he expects to make more money than
| has been surrendered TO the company.
1 This statement was confirmed by Gould
| himself this afternoon, who also said
/ that there was an understanding that
4 he was to be consulted on matters of i'm
portance in connection with the business
of the road. He thinks that the ar
/ rangements now made will enable the
company to lay a third rail on the
| Erie road to make an alliance with the
/ Lake Shore railroad.
1t is also stated on other authority
/ that the money derived from the sale of
| these securities is to be used in laying q
/ LnlIu Idllf MnEltLN lttllOM --duEt
roads Of the West may have another
outlet to New York without breaking
the bulk. And il is further reported
! that Gould will throw his influence in
the Northwestern company in favor of
bringing its traffic over the Erie road
when its third rail is laid. There is a
large short-interest in Erie shares, and
! il is suspected on the streets that Gould
will work the Erie like the Northwestern
| Common, and eventually twist the Ope-
rator on the bear side 1t is also said
that the claim Of the Erie Railway
! Company against Gould was reduced
some six hundred and fifty thousand
dollars on discovery that he had turned
over that sum, the proceeds of thirty
/ thousand shares Of Erie stock, to the
company. The entry did not appear in
| its proper place in the Erie books, but il
was at length discovered, and the claim
allowed.
Mr.. Barlow stated to-day that the
property surrendered by Gould is esti-
/ mated to be Of actual cash value of from
six millions to seven millions of dollars,
and worth to the Erie Company the full
amount of its claims. The necessary
writings were making at his Office, and
/ the securities were delivered to-day.
/ Mr.. Barlow said Gould had received no
equivalent whatever, except the aban-
donment OF the claim against him by
I the company.
Various opinions are given as 10 the
causesEwhich led to GOuld's surrender,
some believing that he had no other
resource, and Others that it is part OF
I deeply laid plan TO regain some of his
lost influence over the Erie railway.
/ Friends of the road declare that the
semi-annual dividend on preferred stock
viii be made as usual,