New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1872-11-27
THE LEGAL PROCEEDINGS.

Horace +. Clarke was examined yesterday
before A. r. MaeDonough referee appointed TO take his
testimony TO be used the motion to vacate the order
of against Gould He testified that he largely
interested in railroad property, and Of consider
able number Of shares Of Northwestern Common and
Lake Shore stock; that previous 20 the Boston fire
Smith, Drew, Trayers, aud others were short" Of
North Western. and they knew Gould was "Iong" on
this stock that Trayers director Of the Erie Rail
way Company.
After the Boston fre Smith and bis party bought up'a
lot of stock thinking that they could sell at advan
tage II such panic should had occurred after
the Chicago fire. There had been unusual activity in
Northwestern and witness had been told, on Nov %,
by Mr. sche that there q rumOr the street that
something was going to happen. He learned, subse-
Quently, that Mr.. Gould was going 10 be arrested on
charge brought against him by the Erie Railway Com
pany, involving over S9yOOO,0OO.
He knew that Travers one OF The directors Of the Erie
Company. had been short OF the stock, but believed
from conversations no had already had with Mr.. Wat
son President Of Ere that the latter not the nsi
gator Of Mr. Gouds arrest at that period OF the day
which is busiest in the market Knowing that Mr.
Goulds arrest would DO the Of producing panic
In the market OF which bears could take advantage
TO the great injury Of the railroad stock he with Schel
went 70 Osborn & Chapn's Office, which he found crowd
ed at the time; he the deputy sheriff who had the
order for Mr.. Goulds arrest.
for Mr. Could On looking the order of arrest and
the papers connected Herewith he observed several
pecuiares being that the Eric Railway COmpany's
counsel had In the order fixed the bail at $07O0OOO but
that the Judge had erased that amount and nerined
HOOOOOO. lie also saw that in the papers thero was
nothing mentioned about the release given by the Erie
Railroad Company TO Mr. Gould Judging from all this
and the busy time Of tho day at which the arrest was
made he inferred that the whole a stockJobbing
transaction.
In Justice to Mr. Watson he did not think that he
ordered the arrest at that particular time or the day.
because it was unusual circumstance for company,
which was a creditor, to bankrupt a which
largely its debtor. lie believed that II Mr.. Gould had
been incarcerated for that day his ruin would have
inevitably followed he believed that few If any men in
New-York could obtain $9,OOO,OOO bail, and
few could obtain SlOOOOO and attempt to place jay
Gould under such heavy bail could only have been made
for the purpose Of having execution before Judgment
The following is order for the appointment OF a ref
take the testimony OF VIM H. rrayers in the mat
ter bet the Erie Railway Company and Jay Gould:
srC Term Of the saPo 3 o. he sia.e of Of Ss Re,
yenbsr, ~ present. the Hon Enoca fr Juicefhe Ere
III papers AID proceeding hefen; ID Iea1g and flag the
addav Of allen ice smd verified nov - M % the pape' thereto
ant ordered That Ar. Cephas Brier Gav he snd
william r Triger be used upon the the said
afy It further ordered that The 'sd William Tnyes attend
before the I'D referee At such tine ani rae be Ppon tie
Endorsed. Piled Nov. 20. 1871 C',RLEs E. low Clerk
S. l.. N. Barlow states that outside OF the regular
court proceedings there developments in the
suit against JAY Gould. He knows OF proceedings
against Daniel Drew. David Dudley Field has applied
for permission 70 examine him (Ar. Barlow orally in
relation to Erie natter, hut he had made the
reply in the OF MI Trayers published In yester
days TRIBUNE.