The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-06-19


Of the great Erie scandal From this it up
pears that our excellent cousins across the
water, and that eminently respectable body,
the London Protection Committee, are not
above driving bargain even with man
whom they formerly so loudly denounced, the
veritable ex-President of Erie, Jay Gould. In
other words, Messrs. Heath and Raphael, the
champion representatives Of English indigna-
ton against American dishonesty, have
declared their former proceedings, and all the
abuse they prompted, to have been wholly
Pickwickian, and have sold out their interest
in Erie to reinstate jay Gould in his old posi-
ton. There is mention of one million five
hundred thousand dollars in connection with
this change Ct sentiment on the part Of Messrs.
Heath and Raphael but we are rather inclined
to believe that better. understanding Of MIR.
Goulds abilities and capacity Of man
agement, as set forth to them by Mr..
Charles Osborne, recent tourist to
Europe, has induced this action on their part,
rather than any other cause. This last turn OF
the cards in the great Erie game is, like in
most cases. more amusing to the lookers-on
than to many directly interested. That dis
tinguished patron of Christian culture and
advanced theologan in the opinion Of Mr.
Richard Schell, Daniel Drew, comes to the
front as an associate Of Jay Gould in this
negotiation We can readily understand how
Mr. Drew's sympathies were enlisted in this
matter He is peculiarly sensitive man, full
of sentiment, and weak almost to childishness
concerning his early associations. Erie was
his first love. With that is identified much of
his pecuniary success in life, and although
he sold fifty thousand shares short at
fifty-6ve, at time when it seemed pos
sible Erie might touch par, it is said he
wept as he did it. Under these cir
cumstances it would be invidious to suppose
that his connection in this matter arises from
other than the purest patriotic views--a wish to
keep Erie from falling into the hands of the
Britisher. Of course if Jay Gould gets to be
President the stock will rapidly return to its
old figure, thus offering a very large profit to
Mr.. Drew on his great short sale; but such is
the reward of virtue. Another leading figure
in this transaction is Henry N. Smith, con-
corning whom little need be said as he and
prominent in the market as a leading bear
and further Indictment to carry forward this
Erie negotiation, regardless of cost, may
be found in its influence upon the general
market.
There is nothing really surprising in this
new development respecting the future control
of Erie. With the exception Of Jay Gould
there appears to have been no one on this side
Of the water really anxious to obtain control
of the road. On the other side,
with the exception of the Atlantic
and Great Western party, represented by Bis
choffsheim and Goldschmidt, equal indifference,
as far as persons are concerned, appeared to
prevail, while even that party, demoralized by
the late act Of the Legislature which prohibits
a director of the Atlantic and Great Western
Railway from being director in Erie, were also
without leader. As with both Heath and
Raphael and Bischoffsheim and Goldschmidt
the principal point, then, was to obtain a
profitable market for their stocks what won
der is it that Jay Gould's proposition, pre-
sented as set forth elsewhere, was well re-
ceived and an arrangement consummated be-
tween them?
There is another point, however, in the arti-
Gle to which we allude which also claims at
tention-that is, that the late change in the
management of Erie was wholly collusive,
and formed part of scheme previously
formed, in which the present promised sup
port by the English interest of Jay Gould for
reinstatement is only corollary. There was
enough that was curious and inexplicable in
that revolution to justify this assumption; but
whether such was really the case or not is not
important now. The last couple of days have
shown a very feverish and excited movement
in Erie with rapidly declining prices in Lon
don, followed by similar falling off here.
In London yesterday there was almost panic
in Erie Railway shares, condition of the
sustain the anticipation Of Gould's early return
to the control of the road
This is nineteenth century justice. Two
continents have for years been in throes of in
administration of Erie. The rights and
wrongs of the Erie stockholders have CON-
manded the attention of the world, to the
lasting prejudice of American credit. Yet,
this outrage having been in part amended by the
removal of the cause, the very parties who had
been most blatant in proclaiming their wrongs
and had combined for their redress Use that
organization to reinstate in position and power
the man who, most of all, was responsible for
the evils complained Of. And these last were
Englishmen.
THE CoTroN Crop OF 1872. report OF
the Department of Agriculture on the cotton
crop of this year is encouraging. The aver
age increase of the area in acres planted
throughout the cotton States over that of last