New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1872-02-21
ERIE IN WALL-ST.

COMMITTEE MAY BECOME TIE fhiCE of
FINANCIAL LIBERTY.
TO The Editor Of The Tribune.
SIR: That reform is the order OF the DAY
hereabout scarcely believe for the WORST re
scences of the old Erie days are revived III surrepous
and Illegal issues of stock by railway managers ana inc
authors are still seen In Wa-st-nOt arrayed IN tue
fancifu garment of tar and feathers you woud hatuy
suppose but vexng the air with the smell OF new cohes
and showing themselves brazenly In seats III tine STOCK
Exchange as though they had done nothing OF whc "
be ashamed You will wonder that this should be When
show YOU briefly is consistent with an lnteligeno
understanding OF affairs, what has been going on.
The Hannibal and St. Joseph Railroad one who' STOCK
has for years been conspicuous among the iancics' ~
paid no dividends, but under Boston management
embodying the same interests that controlled inc hcni
gan Central and Chicago, Burlington and Quincy; many
permanent improvements had been put upon inc ro"u
had a very valuable land grant, and the day was sup
posed TO be not far distant when stockholders would
be reimbursed for their long and patient waiting by
largo stock dividend and regular cash dlHldehds
thereafter Little more than year since, the
stock was selling at 100, but by degrees I"
blight came and 1t drifted to par and below Finally
the trail Of Tammany it that reckless chief
tain the great Boss AmericdnuS-nOt "Bu1alO blli
but Bill Tweed-embarked his fortunes and those Of the
numerous savings banks underihs control In the stock
the road gradually passed from Boston cOntro mo
the hands Of the Eric Ring represented by smith, Could
and Carver. This going from bad TO worse with
vengeance! Yet persons who had bought and pad Tor
the stock at high figures still chung 1t with pious trust
in its intrinsic value and dclusvc hope that dsrepna
BILE rasca at the last gasp OF existence railway mana
gers might be tempted to do something decent to redeem
IA far as possible the bad record Of their past lives Bn
few weeks since it became evident to the street hat
the new President, Vice-Prcsident, and all hahds'
were "shOrt" Of the stock very largely; that
is TO say they had sold large amounts which they did not
aII. I,t,tf In gh a.
price by bringing machinery to bear for its depression
thus profting by difference Nice work this for officers
of road to engaged How they proposed To Jam the
stock down made plain few days since by the sud
den announcement that they had Issued 5OOJ
shares of stock, and that the place OF registry was
changed from Duncan. Sherman d Co.'S to the Tenth
National Bank the latter being pure (perhdpa should
say imuurcl Erie concern. They did not even have
the dccency to make a pretext OF explaining what
the new stock issued for; the bolH an
nouncrment was all that stockholders and dealers were
favored with. You will better appreciate the sublime
audacity this act when you know that, by rule OF
the stock Exchange days notice is required OF any
contemplated increase of stock But what cared these
railroad pads for rules rghsl Fortunately however,
the authorities of the stock Exchange faced TINS roSuc
music for once, and Immediately announced that the
new issue was not "eOOd delivery" NOu must under
stand that these thieves and their brokers had been Dor
rowing the old stock to make their deliveries,
certificates representing more than doubled capital,
ard then call tine thing squared What did the
mpudent Snavcs theni Own mp and beg of ana mum
bly, ask their knees thai they might not bekcked out
their seats at the stock Exchange Not bit Of H.
Accompanied by a notary and witness they made the
the street proerng TO the persons OF whom they
had borrowed good aud genuine stock these new aud
worthless certificates of Illegal issue and taking note oil
each refusal to receive it. How high was that! II Ger
tainly seems to me that the sublinty OF mpudenyc
never before had ample illustration. Borrowing good
money, il were, and then calling high heaven and
notary to witness that the lenders refused TO receive
VIGOROUSLY counterfeit money in return!
What recourse had the innocent lenders Of good stock
in this case you ask Only TO buy the stock in for
the account Of the defautug brokers' under tie rule
This is quite terrible the threat to maine names
by the Speaker of the EHglsh House OF Commons what
ala the thieves then! Simply sold the stock when
bought In for their account, aud dciaued again In s
delivery. And they neither mobbed punished,
you ask. Neither Blrcfaccd robbery has become so
common in WaLst that It cNcites little wonder and
very mconsiIcrab!c Indignation And the rules Of the
stock Exchange here at fault Buying in the stock
for the account Of the defaulters punishment,
il only enabled them to their shorts without ply
ing the usual 5ions The only persons who sur
f.rcd at all were tie innocent lenders Of good stock.
To 20 back now and begin at the beginning, 10 give
Won fair and clear understanding OF how the game
WORKED how it became possible TO play it, aud also to
enable YOU TO understand communication sent by a
great aud good house 10 the stock Exchange, which Will
presently 2br introduced: Tie principals In this dis
reputable transaction Jay Gould, Henry y. Smith,
aud T. f. Carver. II is scarcely To explain
who Mr.. Jay Gould is you have heard Of him before.
That Carver has cut from other places, the name would
indicate il his record did moi establish the fact he
formerly cashier OF bank in Chicago and the rise. pro-
gess decline. and end Of that institution II is uuncces
sary TO rccitc In the light Of later illustrations Of this
gcntleman's financial abilities and possibilities. with
tic name of smith you perhaps somewhat familiar /;
this gentleman is President OF the Hannibal aud 81.
Joseph Railroad, Of which Mr.. Carver IS Vice. Mr..
smith not wholly uncOnnectcd with the ancient and
fish-ke frm Of Smith, Gould Martin.
- that perAdious bark
Built l. the eclipse ana rugged with curses dark"
Of which you may have read. THIS firm was mentioned
in connection with the Black Friday business. Of late
Mr.. Smith has been sngulary fortunate; he fed full
raven on the Chicago disaster, the panic which
followed that fire giving him profit on his shorts" of
10 20 per cent whore he expected at the most two or
three and he TO have had the impression that
this was all brain-wOrk his part. Certainly
the Fates ,have favored him strangely for some
fine; but all the while that ClOthO and Lachesis
spin golden thread FOR mOrtal-eyen though he be
one of the proud Smith famiythe shears OF AtropOs
are not far Distant the fatal final snip at last
The ides of March OF late Mr. Smith been
OH the "bear" side; it turns out that he it who in
stgated the recent investigation into the affairs OF the
Pacific Mail Steamship Company, in a desperate en-
deavor break the stock setting the captain of
canalboat which lie controls, to acitatc lces
latiye waters at Albany. 1--WE find nothing TO condemn
but the authors of the investigation" was
about report of the legislative committee
Mr. Smith may be nice little man enough
yet many people who walk more circumspectly
walk less consequentally. But to return to egt
mate mutton Satisfied, perhaps, with the pleasant
toriety it achieved in the Black Friday gold affair." and
able to boast that il never guilty Of a single square
TRANSACTIONS the house OF Smith, Gould Martin grace