New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1872-12-20
GOULD'S COMPROMISE.
ALL THE ERIE SUITS AGAINST HIM WITH
DRAWN

TIE VICTORIES OF PEACE.
THE TRIBUNE's announcement, yesterday
morning, OF Jay Gouds proposition to compromise no
various suits brought against him in behalf of the Erie
Railway COMPANY by tho payment Iof S9O0oOoO created
the most intense excitement In Wallst. The common
stock which had closed at b2s 10 80 on Wednesday even
ing opened very actively yesterday ut b3 ana sou up
10 57 with enormous transactions The preferred stocK
usually quiet advanced from rs TO 49, inc ETC seuo
ment was the subject OF general conversation
and the results of tho meeting or inc
Board Of Directors at the Grand Operations were
anxlously awaited on tho street. Many theories were
advanced as TO tho cause OF the alleged COMPROMISED
those who not very friendly TO the preseu' Eio
administration intimating that IL was prearlanseu
matter for the purpose of influencing the stock mar
ket and enrichng Jay Gould and the Erie directors
all OF whom had gone "long" Of the stock at low figures
before making the result Of their conference
IL was represented by those whosproessod to know
great deal about tho matter that Jay Gould had been
allowed to purchase about 100000 shares OF Erie halfway
stock both in this market and in London on winch nc
expected to make handsome profit by the advance III
value when the results Of the compromise were ai'-
nounced This transaction said TO DO In aeeoruance
with Gould's course at the revolution at the 1ranu
Opera House. when he was largely long OF the Stock
aud pronted greatly by his own downfall ana remoVai
from the Ere management The history OF the sete-
ment is briefly as follows:
PROGRESS OF THE NEGOTIATIONS.
Soon after GOuds arrest on the auutVlI oi hehIJ '
Smith and on obtained from the books OF Smith,
Gould, Martin & Co., the exPresident OF Erie either
feared the results Of trial thought that it would be
more polite TO conciate the present administration OF
Erie OF to combine with members OF II for purposes
mutual profit Accordingly. after having .reapeo the
rich fruits OF tho NORTHWEST" harvest oVertures
were made looking TO reconciliation between Gould
and the Watson administration Numerous interviews
we're had between the former and the principal members
of the latter the whole eliminating in Goulds PROPOSE
ton TO refund the money and property alleged to nave
been fraudueny distracted by him from the custody
OF the Company. This amounted to about soo'6oOo
The terms OF the proposition such as TO excite the
interest OF those whom he consulted and PRESIDENT wat
son and g. L. NJ b rlow counsel and director, agreed
that the matter should be referred to the Special COM
tnltee having Goulds indebtedness under consideration
This Committee consisting Of President watson William
b. Duncan William r. Trayers, g. ID. Babcoek and others
thought 80 ayoraby Of 1t that they requested the Pres
dent to call special meeting or the fu Board OF Drec-
tors to act upon the matter This was accordingly DONE
and notices sent TO the members for spec eet
ing yesterday morning
They met at about 10 q. m, In their rooms al tue
Grand Opera House. and remained in secret session for
several hours Among the directors present were the
President Peter II. Watson, exGoy. l.. d. Morgan. b. d.
Babcoek, S. l.. NJ. Barlow Homer Ramsdell, John ).
Cisco, william Butler Duncan Charles 8. Day, William
r. Travers Gen. Lansing, aud Messrs schuscnardt and
that the only business before the board was the eonsd
Grafton OF Jay Goulds proposition 10 settle This propo
sition was In the shape OF the following letter. from
Gould TO President Watson:
JAY eoULD's FLEA FOR PEAcE
" NEw-YoRK. Dee ~, 1871.
DEAR SIR: Referring to my recent e9.yersation yin
you on the subject OF the claims OF the Erle RAN
way upon me, ] answer that there Limo no
nent OF ali open questions satisfactory and honor
able all parties should notnOw DC made nave ~ az
tunes since resignation as President OF the Erle
COMPANY, been prepared to mako conveyance TO t of
properties belonging 10 the company 10 when mover
made any claim. In addition TO these, have held In
nv name both real and personal properties which IN
tended for the OF the Erie Co npauy Some OF Wsn
and Others OF witch purchased rather with the expee
taton benehting tine Company through business 10
accrue to the road than from any other motive.
Upon your construction OF my accounts with the Com
pany am charged with all the moneys thus expended
and the properties in question: therefore, belong TO me-
Ny idea h rather that they should go TO the Company
Another question of more Importance grows out
OF the state in which compelled TO keep my ac
from the Presidency. could then have explained many
matters which BOW are involved IN doubt ono account
book belonging the Company has been misaid since
lett the Presidency Through entries 10 IL could readily
account for all the discrepancies which you nave pointed
ont To me- kept for this purpose, and ITS loss IS
a serious embarrassment. But am Wiling ana prefer
10 meet III spirit that snail leave no question as 10
nv motives intentions.
Take your own statement and your claim, s9,Os6OOO,
the various pieces of real estate IN NewIork, New
Jersey Pennsy lvania, and Ohio and the stocks and
bonds which mentioned In my last conversation Win
you believe you wl consider w0t.n more 20 Tue , ZIG
properties purchased with my own means ana the
Company has claim upon them but they are neees-
sary FOR its USE l now propose to convey oil these
properties previously mentioned and viii, IN addition,
anyey the Grand Opera House ana all adjacent proper
lies owned by Mr. Fisk and myself the same 10 be freed
by me from all mortgages TO you, on receiving fun
discharge from the Company
do rms Tor the sake OF peace because any litigation
such questions IL more annoying than he loss oil he
money involved and because am sincerely anxious for
tlta % Company
large pecuniary interest
Please let me know speedily as possible whether
THE proposition Is iavoraby entertained by YOU Yours
Peter H. Watson President Erie Railway.
PRESIDENT wATsoS's REPLY.
To this letter President Watson returned the following
''f' OFFICE OF THE ERIE RAILWAY COMPANY,
NBw-YoRK, Dee. II, ls72 )
LAY 0oULD-Dedr Sir: have your favor OF this date,
the substance OF which will at once submit TO the
Special Committee OF our board having the claims ,nn
will be- but l am satisfied with the explanations you
have made and will cheeriny recommend settlement
the best interests OF the Erie Company viii be thereby
G ns 'hs to sS m Of @
against you of every character will call orr Commit
You not DOUBLING that they viii consider your Offer
do, a fair under the circumstances and one which
interests OF the stockholders OF the Eric Company
Yours respectfully, PETER II. WATSON, President.
NINE MILLIONS, PAR, REFUNDED
The result Of the meeting was detailed in the following
statement which had been prepared for publication
The Special Committee, consisting OF the President
(Nr watson), Gov. Morgan, W. b. Duncan, W. r.
Trayers and g. d. Babcock to whom the subject Of all
claims OF tho Erie Railway Company against Jay
Gould was referred a number Of months ago. made
report to the Erie Board OF Directors recommending the
acceptance Of the terms Of agreement proposed by Mr.
Gould.
The terms are the settlement Of all claims OF the Erie
Company, amounting TO over 100000. by the imme-
dats CONVEYANCE and transfer the Company of real