New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1872-11-26
MR. SMITHS POSITION.
HIS RELATIONS WITH mr.. GOULD FRANKLY
sTATED-HIs CONNECTION WITH THE NINE
MILLION SUIT

sTATED-HIs CONNECTION WITH THE NINE
MILLION SUIT.
A reporter of THE TRIBUNE called last even
snx upon Henry p Smith at his residence, No East
Forty hfth-s He was in his paror converting wan %.
W. Joslyn Of the firm Of Josyn, Bach & Co.. bankers
and brokers. in which firm both Mr.. Smith md Jay
Gould arc special partners The reporter In apologng
for ntruding upon the privacy Of the gentlemen urgea
as an the great interest felt by the pubc ia any
thing that concerned the great corner" IN
common stock, Of which runor asserted that hr' sm'h
was largely short"
Mr. Smith smiled and said That he was somewhat in-
ed in the movements OF that stock and was will
ing 10 give his statement through the press His friend
and partner, Joslyp, understood the case thoroughly
and would make a statement for him, and this Mr JOS
yn proceeded to do Mr.. Smith occasionally suggesting
Q sentence or corroborating assertion.
II is understood that Mr. Smith has been short OF
Northwest common stock AS TO all contracts when
Mr. Smith had with brokers Of the Board to whom he
had given orders to sell this stock Short for his 40
count and instances where they had borrowed IL oil
other Of the Board he has reputehased In the
market and made his devhres through his brokers 70
the last share and OF course suffered considerable loss
in the course his transactions, he had sold some OF
this stock through the house Of Garland, Martin Co..
In which is special partner, Mr.. Could who Is also
special partner in the house, being "long" OF
the stock The brokers' according TO their usage, de-
yered the "long" stock of one customer as against
the short" stock Of the other and hence, when this
corner" arose it was between principals who
were both partners the house. and neither Of them
member OF the stock Exchange amenaOle under is
regulations for deliveries Of tue stock.
mr.. Gould availed himself Of his position as special
PARTNER In the two houses TO examine the private
counts Of Mt Smith with each Of the firms Ascertain
ing that Mr.H Smith largely "short" OF the
stock in each OF the houses, he communicated the facts
thus ascertained other persona formed combination
TO purchase the stock Of the Company 70 withdraw IL
practically from the market and compel him smth 10
purchase the stock from the combination on such terms
as they might impose In order to meet his engagements
LISA welknOwn fact that Mr. Smith has been one OF
the largest holders OF the preferred stock OF this oon
pany for long time past and when called upon to meet
his engagements TO the constellation Of Gould and his
associates rendered the preferred stock II evidently
had not occurred to them that the preferred stock had
had all tho attributes Of the stock beside carry
ingwith 1t additional privileges and rights which tho
holder could claim At his own election.
Mr. Smith does not assume to poss upon the question
whether such O delivery would be good between
brokers under the peculiar rules OF the Stock Exchange
but as between himself and his partner, Mr.. Gould,
neither Of whom IS member Of that body he claims
that such delivery is unquestolably performance OF
hs contract wen in equity as In law. Upon this point
Mr. Smith Is understood TO be sustained By the opinion
Of his counsel
This statement was read by both gentlemen and was
pronounced by them cover the whole ground.
The reporter then wished to know OF Mr.. Smith II he
would state bis connection with Jay Gould and the Erie
Railway. He replied that he had not, and would will
iugly answer questions bearing upon the case
TUE ERIEI SUITS,
Observation-Disclosures state the circumstances under which
you made the affidavit relative to the suit Of the Erie
Railway Company against Jay Could % ..
Mr. smith-It came 10 my knowledge some weeks since
that the Erie Railway company threatening to
the members Of the late hrm Of Smith. Gould, Martin
Co. for money Of the Company, under the superstition
that such moneys were IN the hands Of the firm know
that as between the other members OF the firm and A.
Could all such moneys had been paid accounted for,
either TO the Company or TO Gould, who President
and Treasurer Of the Company. ] desired to protect
myself Mr. Martin and MIR. Bach from any such suit,
which could only be brought Eganst ms under insap-
prehenaon Of the eetusl facts.
An arrangement was made accordingly for an inter
view with Mr.. Watson, the President of the Erie Rail
way which occurred about two weeks since. He stated
bis claims against us. explained to him the facts as
they really To satisfy him 1t became necessary
TO refer TO the accounts OF firm, far they re-
lated 10 transactions with the Erie Railway. subse-
ouenty the company brought an Faction against Mr..
Gould, and called upon me for my affidavit, which
made accordingly.
Reporter-At the time Of the interview with Mr. Wat.
SON. had you any knowledge Of the conspiracy In North
West stock which developed itself Immediately after the
arrest Of Gouldi
Mr.. Smith, had not At the time the affidavit was
made the stock selling about the price at which
It had ranged for considerable period. There
considerable advance until after the arrest Of Mr. Gould
This both gentlemen protested to think covered tho
ground Of this transaction The account Of the inter
view was carefully read from the beginning to tue end
and on consultation they agreed that this the
thorized statement which they were willing shonld 10