Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1872-11-25
NORTHWESTERN COMMON.
Additional Developments in, and ResultOf
the " Corner" in this Line OF Stocks
Who are the Victims and
their Condition.
How Drew was Caught by an Ingenious
Device Of GOuld-Interesting De-
tails Of Stock Gambling.

| NEW YORK, November Z4.-Iuc LtHles
has the following about the northwest
corner: During the morning, and in the
early part of the day, William Travers
covered his shorts, paying, it is alleged,
$780, 900 difference. Charley Lamont
stood up to the rack also, and paid his diff
ferenees, amounting to near the same
sum. These contracts were settled on
the basis Of $50.
The highest estimate of the amount OF
stock which Daniel Drew is short is
a, 900 shares, and lowest 1900. Should
he settle in full upon the closing price OF
Northwestern, he will lose nearly s., :
500, 900.
Common rumor says that Henry n.
Smith was short forty thousand shares,
which will involve him to a greater ex-
tent than Daniel Drew. The opinion
was freely expressed on the street that
he would not pay his losses in full, but
let his brokers stand the brunt of the
contracts.
1t is said that Drew was caught iu the
trap by a device of Gould's, which was
ingenious in its way. Gould went TO
Drew 9 few weeks ago, and suggested
the possibility of singing the street
on Erie, III which transaction the latter
was to appear as a bull. Drew joined in
with the idea, and went to work secretly
to buy up large stocks of Erie, locking
them up in safes as fast as purchased.
The stock in this market was soon
gobbled up, and as a consequence the
price of Erie began TO advance. Gould
also bought of Erie largely at lower fig
ures on the start, but abstained from
purchasing any when it began to ad-
cyfral- 20. us.r 4
a half, and Gould unlOaded his entire
interest upon Drew, thereby netting a
considerable profit. Drew, ignorant of
the bad faith of his ally, and wondering
at the large quantities of Erie stock
which continued to flow in as he kept
ON purchasing, went it alone, and was
making fair progress in bulling the mar
ket on his own account when Gould
turned a card. In some way he be-
came acquainted with the fact that
Horace F. Clark, Augustus Schell,
and the Vanderbilt party generally,
were endeavOring to obtain control of
the Chicago and Northwestern stock in
order to get the road in their own
hands, and supply the missing link in
the great railroad chain to the West
He thereupon formed a coalition with
the Northwestern clique, and going to
Drew, who still supposed he was help
ing him to "bull'' Erie, suggested that,
as a blind to their real operations, it
would be a good plan "to go shOrt'' in
Northwestern, and, thereby, throw the
street off scent. Drew, relying upon the
Judgment of his "quOndam'f associate
in Erie, aequiesced in this arrangement,
merely saying that he guessed it "was
all right to 90 short of Northwestern,
and it might tickle the boys to specu-
late in something new" His
brokers executed his orders, and
the design was accomplished. The
attention of Drew became absorbed
in the cuteness of the Erie bull move
ment, and while he was watching the
rise of the stock he paid little attention
to the Northwestern. Gould found that
Drew was trapped, and kept away, oc-
cupying his leisure moments in engi-
neering the rise. On Friday night Drew.
speaking to the Times reporter, and still
entertaining some hopes of a decline in
n Northwestern, remarked jocularly-
81 hear that Northwestern has risen.D
Yesterday at the close of Exchange,
when Northwestern reached 2:30 the
remark was made to Drew: "Northwes-
tern is rising" Rising responded
Drew, "rising-why, its rizu' Drew
realizing the perfidy of Gould yesterday
sold out his Erie stock which be bought
to "skin" the street, and it is supposed
that he will use the proceeds to settle up
with successful parties. He also un-
loaded large amount of Wabash and
other stocks. 1t is predicted he will
settle on Monday at the Fifth Avenue
Hotel.
Last night there was considerable ex-
element among bankers, merchants and
brokers, by the various reports which
were circulated relative TO the second
arrest of Gould, and its connection with
the Chicago and Northwestern corner.
The story, as it gained circulation, was
that the Erie Company had determined
to arrest Gould again that he might be
held in greater bail than 81 200, 900, but
this was cOntradicted in several quarters,
but there seemed to be no adequate
grounds for assertion or denial.
Watson, President of the Erie Com
pany, stated that it was his Intention to
have the bail made large enough to, in
some way, guard against GOuld's run
ming away, but that was his only object, |
as he was totally disconnected with
stock iobbing. Watson thought that
one million dollars was sufficient aail for
the present, although he deprecatef the
custom of diminishing the bal .s the
of the defalcation increases. |
There Is much interest manifested
the events of tomorrow in |
Wall street, and anxiety in regard to the
course of the market was intense.
The World says: awe are greatly
mistaken in the character of Mr.. Wat |
son, of having once grappled with this
"crying curse" Of our country, in the
person Of one of its most notorious rep |
He does not keep his hold
with bulldog tenacity until he has
brought his quarry to earth.n