The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-06-19
JAY GOULD TO BE REINsTATED.
The English Stockholders To Be Bought
Out and Unidentified.
SELLING ERIE SHORT.
Cause Of the Decline in London
and New York.
GOULD'S SPECIAL AGENTS.

In spite or the summer sostice and the c0nSe-
qucnt general dulness which accompanies that
period in Wall street. Erie, true to its history,
tinues to develop fresh sensational effects from day
to day. Thus yesterday the street was startled
with sudden drop in the price Of the stock to SO,
simultaneous with decline in London to 42&. A
writer Of an evening paper yesterday afternoon,
commenting upon this feature OF the days business,
says, rejecting the views OF the street.-The stu.
the large and wealthy holders have Sold out to
weaker class of spectators, and hence the embar
easements and fain1fcs which are now re-
ported there. Such wealthy and influential
banking firms in London as Heath h Raphael
and Bschofrsheim 4 Gollschmidt bought enormous
amounts of Erie shares In this market after the
revolution in the management OF the company.
These purchases were made from So and upward,
and If report speaks truly these parties have been
heavy sellers OF Erie ever since the stock touched
75,s on the New York stock Exchange. The con-
test for the election to take place in July next was
over some time since, and 1t may be regarded as
fixed fact that Messrs. Bischofshem Cold
schmidt, James McHenry and other parties in the
Atlantic and Great Western interest, will control
the affairs OF the Erie Railway in the early futured
How far this Judgment Of 1.-THE situation" is cor
rect will be seen from the following statement of
facts:-
In the first place, 1t may be promised with safety
that this Is the age OF humbug. New York last
November spurred by spirit of indignant virtue,
turned upon its old political leaders en- nadsse to
give place and power to so-caled reformers, who
proved incompetent, If In earnest, to carry out
the work demanded Of them. There are many to-
day who regard the so-caled revolution which
then took place IA "a mockcry, deluson
and snaren The. Presidential contest presents
the curious spectacle, to thoughtful minds, OF
whhom democrat claiming to be the only proper
representative OF simon Pure republicanism, while
lifelong republican Is hawking his principles
about for the consideration OF democratic voters.
What will he thought Of the assertion that the
luton in Erie, supposed to result In the overthrow
OF the obnoxious ring OF that liz. following closing
upon and being, as it were, supplementary to the
destruction OF the Tammany Ring,
A SHAM, FALsEHOOD AND A JOB.
Yet this we are prepared TO state. upon informa-
ton and belief rs being now matter Of public
scandal. Recent developments, both in Wall street
and on the London Stock Exchange, establish this
fact and furnish evidence 30 convincing that he
who reads may be confirmed in this assumption.
To establish this proposition we will begin in
versely.
On or about the 3Oth ult. Mr.. Charles Osborne Of
the firm Of Osborne, Chaplin Co., OF Broad street.
left this city the agent of Jay Gould, late
President OF the Erie Railroad, Henry N. Smith
and Daniel Drew, with authority to negotiate
with Messrs. Heath Raphael, the agents OF
the London Protective Committee, for their CO.
operation in rcnsta,ling jay Gould in his old posi-
ton as President of the Erie Railroad. In
order to effect this end IL Is authorta
lively asserted that Mr.. Osborne carries with
him plenipotentiary powers to arrange such CON-
stockholders generally will induce them to throw
their influence at the coming election in favor OF
Could Such compromise only mean, OF
course the purchase OF their stock at the present
high figures, with perhaps other money con-
siderations. The inducement TO others OF the
English stockholders Is to be found in
the means thus Afforded of closing up
the enormous litigation now hampering the
resources and enterprise OF the company,
with the promise, doubtless, Of the restitution OF
much OF the former property OF Erie curousy
alienated in the Fisk Gould period. 1t Is not in
tended, however, to put Gould forward at the next
election as
A CANDIDATE FOR TIE PRESIDENCY
of the Erie road. Such a course would too
seriously affect the value OF the stock to suit the
views OF the Gould party, the leaders OF which
constitute the triumvrate mentioned above
VIZ, Jay GoHuu, iicHIy SIHiln, tue tTSa MAJOR,
OF Broad street, and the veteran Daniel
Drew. The game OF these parties is not TO
have the stock drop too suddenly, as such a
consequence would leave them without the means
Of fulfilling their engagements. Their plan is by
free sales OF transferred stock that the trans
fer books are closed, and short sales against the
decline which the public knowledge OF this plan
will inevitably bring about to make such profit as
will enable them TO carry out their agreement with
the English stockholders That they nave already
commenced this part OF the programme is appa-
rent. Mr.. Osborne arrived in England on the 18th,
since which time there has been
A STEADY DECLINE ~ ERIE RAILWAY SHARES.
on the 9th inst large amount OF stock was
shipped from here to London to he sold on account
OF smith. Gould and Drew. The almost panicky CON
dtiop OF the Erie market there yesterday is thus
explained. II is further asserted and certainly the
course OF the market supports this assumption
that this triumvirate commenced selling az H. and
that the decline since has mainly resulted from
their operations. - '9-r..
But TO return. The plan agreed upon to foist
Gould again upon The Erie Railway, after the out
side public have been saddled with the stock at any
price down TO its former figure before the change
In the management, is to nominate and elect in
July next dummy for President, who shall be
mere creature OF Goulds-his name IS mmaterial-
and who viii hold office only until the
excitement growing out OF the election shall
have subsidized, when he will retire and
Could be reinstated in his old place. Although the
means whereby TINS movement is to be carried out
have only taken form and shape OF late II Is no new
conspiracy, but dates back to November last, and
TO period anterior to the shooting OF James FISK,
Jr, an event which helped the conspirators
nightly but which had not been included I'm the
programme. The first act was the iorced res'sha-
tion Of Fisk at Jay Gouds request, 1t
be,no arranged that the norid Colonel OF
tho ninth was TO be thrown overheard
as a sacrifice to clamorous public Indignation. The
subsequent proceedings IN the so-caled revolution
bear uninistakaplc marks OF COLLISION ON the part