The New York herald., 1872-11-27

Company, whose Interests he was endeayoring
| c0ncurred IN the opinion that the
| LEGITIMATE PURPOSE OF BAIL
and not 70 destroy him in Advance ce OF ss
and execution; Mr. Watson discaimed any inten-
| tion on his part to molest Mr. Gould unreasonabiy
| or unnecessarily, and think, added that he had
given express instruction that he should be arres-
| ted In the morning and not at night; Mr.. Watson
| further disclamed, ana know he did so truly any
knowledge In respect TO the stock market or in re-
@ lation 70 MT, Gouds connection Herewith at tho
Q. Did Mr. watson state in whose charge the
action against Mr.. Gould was placed A. think
nc said the matter was In the hands Of the counsel
@. Are You acquainted with Messrs. 8. L. M. Bar
| low, william Butler Duncan and William X. Travers
Q. Are not they familiar with the ordinary course
OF the stock market in this oity9 A. AS TO Mr.
Duncan and Mr.. Barlow do not know; should
| say Mr. Travers was well informed man in re-
| spect to the stock market.
Q. Has not Mr.. Travers been dealer in stocks
; Ia Waii street more or less for many yearss A.
g. What time did you reach down town from the
Erie railway ohice3 A. On November %.
q. And what was the state OF things in the
market on your arrivals A. | took no particular
O'Clock when got down town; there was then ,"o
INTENSE EXCITEMENT IN TaE STOCK MARKET
Imet Mr.. Augustus schel few moments before
two O'Clock; he informed me that lie had heard at
quarter before twelve that something was to
occur before two O'Clock to produce panic in the
SlocK market; there was
SPECIAL EXCITEMENT IN NORTHWEST
comron stock, which was advancing in price.
ns1a,x W AZ s what time OF tne day are settlements
the important hour with reference TO stock trans
actionsf A. should say that from quarter past
two until three O'Clock was the important hour in
an excited stock market; deliveries, think,
at q quarter past two, and between that time and
| three O'Clock bank accounts must be margined to
| meet the fluctuations OF the day.
s9.s 2: Explain ls y what you mean BY the expression
are generally made by borrowing stock, and
| SELLING THE BORROWED STOCK
upon tne air e enaer EN- OF the STOCK M has sne
shall margin up to the market price, and the bor-
| rover on the other hand. may require the lender
to margin down to the market price in case OF
depression: by margin | mean a deposit in cur
rency equal to the difference in price; when stock
Is borrowed, the borrower pays the lender the
@, Regarding dealer in stocks situated as Mr..
the day would it be most runous to his busin ess to
take him away from his place OF business or inter-
ssSeh E H. H. gSTY gSaaY asSSS as ~ hour
Q: At about what hour was Mr.. Gould arresteds
A. should think shortly before or about three
Q. When you came to the once of Osborn h Cha
pin at which Mr.. Gould was arrested did yon find
many persons gathered around the doorY A. There
CROWD AND CONFUSION,
and very great excitement; 1t was not without
difficulty that made my way through the crowd
Q. What occurred In that ONCE In relation to the
question Of bail9 A. Mr. Gould was attended by
several counsel who were in attendance awaiting
the intended arrest; one of the counsel inquired
t'sa'' would he taken on a the spot; the inquiry
. MSS osWereu ~ one OF the officers, who stated
tHat #aA could Fe be taken except at
SHERIFF'S OFFICE,
I u p!Uc.7 sreet. and that the bail must justify
ga owners .. al estate In the city OF New York |;
t vas raining 1t the time and the gas was lighted
4 waa about quarter-past three O'Clock; was In
formed tiNt the OliCer allowed Mr.. Gould few
minutes OF time to arrange his business before be-
ing taken to the Sherif's office; glanced over the
which were In the hands OF one OF Mr.. GOuld's
counsel, and observed that
OF Mr.. Gould by the Erie Railway Company had not
| been alleged; this circumstance, In connection
with other r. circumstances an to which ihave referred
as .t the @ arrest was concerned was in accordance
time when 1t must
INEVITABLY CREATE A PANIC
in the stock market; Mr.. sche and myself con-
Cured In that view, and we determined that it
CHEcKMATE THE MOVEMENT
SPOT. The ocer not feeling at liberty 70 take .ie IT,
took Mr.. Gould TO the Sherin's office, where Mr..
schell and myself at once went and executed the
We would have interie!ed to put out
THE CHICAGO OR THE BosTo( FIRES
had we been present at their happening and been
able to extinguish them.
Q. What would have been the effect upon Mr..
G0ULD's FINANCIAL POSITION
he was arrested'he had feen kept in close custody
without the power OF giving BAH ? A. have no
RUINED HIM.
A panic unprecedented In its character must have
| inevitably ensued.
Q. Who would have profted by such panic? A.
None but parties short OF stocks. Every other in.
terest would have been injuriously affected. 1t
| would have
RUINED GREAT NUMBERS or MEN.
| The failure OF the scheme did produce a panic
among the street sellers OF Northwest common
| stock. In the course Of one hour the price rose
eo per % ZEN sar rms rise was % caused y te
| cover their stocks. Had the scheme been sue
cess. there would have been an enormous fall in
| fhn nYtn nf hn CT 0hrrt ntlAwo
| have been enabled to cover at perhaps a large
profit. The whole market would have sympathized.
/ and
! ENORMOUS LOSSES
would have been sustained by the holders OF other
railroad stocks dealt in in this market.
Q. Are you largely interested In railroad prop
erty as stocKholder and oiiicers A. am.
Q: In your Judgment and in the light Of your ex.
perience could the arrest Ofa
| DEBTOR TO A RAILROAD COMPANY,
| in the manner and under the circumstances OF the
promote the real interests OF the corporation
creditor, or could 1t be reasonably expected by
any offcer of said corporation, familiar with the
course OF business, that 1t would do so A.
can well understand why parties short or North
b oss for @ teorv unoe se
which the Erie Railway Company should be willing
to cause the
OF man whom they allege owe them $40. 000 900;
there must have been some misapprehension about
him to be man OF the very highest integrity OF
purpose and OF character, and | am satisfied that
| Mr. SInltn dlu not disclose TO Mr.. watson with his
other revelations the relations which he himself
as we'll as Mr.. Gould, sustained to the stock market
at that particular time had such disclosure been
made to Mr.. watson feel confident that he would
have given such directions as to the time OF any
arrest which he might be advised by his counsel to
procure, or would have tended to prevent the utter
| ruin OF the debtor to his corporation.
O. Was not Mr.. William Il. Travers a director Of
the Erie Railway Company at the time OF this ar
rest and one OF the suretes In the undertaking
upon which the order OF arrest was obtained? A.
believe Mr.. Travers to be director OF the Erie
Railway Company; don't know who were the
suretIes for the Erie Railway Company In obtaining
the order OF arrest.
O. Assuming that Mr. Travers was one of these
suretes and had
PERSONAL DIRECTION
OF this action, In conjunction with other directors,
do you think he could have been ignorant of the
effect upon Mr.. Gouds financial condition, which
his arrest, under the circumstances you describe,
lcalx To hau "A I think Mr. a xUalI-