The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1872-11-23
The Great Corner in Northwestern
Common.

pectedly tho market opened with'a quich
and eager demand for money and gold
the one commanding full Q per cent bo
mus per diem, while gold lent as high q
It per cent Thetwo corners were doubt
less the direct emanation OF one head
though the scarcity OF gold was due tC
the cooperation Of one Of the Canada
banks. The squeeze to-day is understood
by knowing ones TO be the result ot cogita,
honsot the distinguished operator, who q
heavily short Of Northwestern common
but If concerted for the purpose Of intim.
idating the prime movers In Northwest.
ern, II hardly failed Of success, for while
this stock ruled practically quiet enough
during the morning at 90 and 95, the Of.
ternoOn brought with 1t such sudden
jump as might well cause most serious
alarm among the shorts, and by this time
the great Methodist reformer '!must know
how It Is himself" The price advanced
by rapid strides, several points at q time
until at the close 200 was bid, and parties
who had been led to sell these shares at 80
on Wednesday, found themselves lett out
In the cold, So complete has been the
corner, that nothing apparently remains
undone to give 1t q greater success, and Il
stands alone and unparalleled in the his
tory Of the street for the last few years, and
vividly recalls the famous Harlem corner
Jay Gould presented himself at the
Sheritt7s office, accompanied by Augustus
Schell and Horace F. Clarke, who had
consented to become sureties on his bail
bond, the bail being fixed at 100000
Each Of the bondsmen justified, where
upon Gould was released by the sheriff
The counsel for the Erie Railroad, how
ever, will object to the sureties on the
ground that they should have justified in
81 100000 each.
The affidavit ot President Watson, OF
the Erie railroad, AYERS that that company
has cause Of fSction against Jay Gould, fol
more than the sum OF 9,726, ,541 90, To
which the interest Is 10 be added; that
such cause Of action arises from the fre.
quention, detention, embezzlement and
ulisapplication Of the monies and prop
erty Of said Company; that Gould while
acting as President and treasurer OF said
corporation, has been guilty Of fraud in
incurring the obligations for which this
actionis brought That ct the same time
Gould was Q copartner with Henry N.
Smith, Henry H. Martin and James 3.
Bach, under the firm Aame OF Smith,
Gould, Martin s. Co., bankers and bro.
kers, and the agents and brokers OF the
Erie Company; and that all monies claim
ed as having been at any time to the GRID.
1t OF said Erie Company on the books oil
said firm, were received for said Railroad
Company during the time that Gould was
its President and Treasurer. That at va.
rious times from the Srd of August 1868,
to the 9th Of November 1860, said Erie
Co. created and issued 407,347 shares Of
the par value Of 40,794,2 200, increasing ifs
capital stock, exclusive Of preferred stock,
to 75 900 900. That in the issue Of said
stock Gould took a prominent and active
part as officer and director and that II
was issued directly to him as President
and Treasurer or said firm ol Smith,
Gould, Martin & Co, as agents and brok.
ers, 10 be converted into cash for
the benefit OF the Erie Company.
That aforesaid stock sold under
Gould's direction, produced. after the
deduction Of charges and commissions
$l2, ,s0s,059 23, which sum was received
by said firm, as appears from their books,
and that while said firm. has accounted In
cash for this amount to said Gould, said
Gould has fraudulently received q large
part OF the net proceeds Of said stock, 10.
wit, the sum OF 81 400, ,l32 90, as appears
by said books, and has converted and ap-
piled the same TO his own use; that 6y
reason of sales OF stocks and other prop.
erty 10 Smith, Gould, Martin s. Co., there
appeared on, their books the lat Of August,
1869, the further sum Of $S,061,7 200 Is
Justly due the Erie company without de-
duction or Offset, and that on said day, by
express direction OF Jay Goald, it was
transferred to his individual credit upon
false and fraudulent pretense that the
Erie Company was largely indebted 10
him, and that he would account 10 them
for said sum, when In point of fact Gould
was largely indebted to said company
This transfer was made for the purpose
Of repHying 10 said firm the losses re-
Gently made by said Gould in q specula-
ton in gold, carried on by him ior his
own individual account, and as between
himself and said firm. AS appears by
their regular books of accounts, the whole
Of his sum thereupon became payable to
said Gould individually, and he thereby
fraudulently embezzled and misapplied
the monies Of said railroad, for which he
was liable as member OF the firm, and
as President and treasurer Of the Erie
Railroad Company; also, that on or about
the 10th Of November, 1858, Gould com.
meuced speculation on individual &C.
count In the shares of said Erie railroad;
purchased d large number Of shares oi
said stock through said firm, upon which
he had then very large loss, arising from
depreciation oi the market value OF such
shares alter purchase; that to relieve him
self from this loss, and iraudulently tc
throw upon the Erie Company the burth-
en- Of his private speculation and loss, IL
about July, 1859, the said Gould, through
his agents and attorneys collusively, and
as tho deponent believes, by fraud upon
the Court, or one Of It's judges, procured
an order purporting to authorize the Erie
Company, or its officers, 10 repurchase In
the market for thepurpose OF the cancel
lation ot alarge number Of shares Of sale
company heretofore issued by, and under
approval OF, said Gould; but which, fol
the purpose OF said application. were nd
mitted 10 be illegally issued and Of doubt
ful validity. And that IN the consumma,
tion OF such fraud said Gould caused
12l, 400 shares ol said stock to be charget
against the Erie Company, on the book
Of said flrm, on the 9Th Of August, 1859
at the average price OF 161.47 1.100 PEI
share, amounting In the aggregate t
! $74, ,6s4, $50, and the assumed cost Of sale
shares was on that day charged to thu
Erie Company on the books OF the firms
In the nominal satisfaction Of the monte
then belonging 10 said Railway Compan,
In the hands OF Smith, Gould & Co; tina