The Fremont weekly journal. [volume] (Fremont, Sandusky County, Ohio) 1867-1877, 1872-12-06
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! On Friday, Nov. 22d, at the suit of
P. II. Watson, President of the Erie
R. R., Jay Gould was arrested on a
warrant issued by Judge Fancher, of
the Supreme Court, based on an af-
fdayit which charges Gould with
wrongfully taking to his own use
while in the control ofthe Erie Rail-
road uine million and a half dollars
Of money belonging to the Erie
stockholders. The sureties in the
order of arrest are Vim. Butler, Dun
can and William R. Travers. jaw
Gould presented himself at the Sher-
IFS office, accompanied by Augustus
Schell and Horace F. Clark, who
had consented to become sureties on
his bail bond, the bail being fixed at
one million dollars. Each of the
bOndsmen was justified, whereupon
Gould was released by the Sheriff.
The counsel of the Erie Railway,
however, will object to the sureties,
on the ground that they should have
been justified, in one million each.
The arrest is said to have been
broughJ about by one Smith, Of
whom Gould had gotten advantage
in stock jobbing operations, Those
stock jobbers have no mercy on each
other, as witness the following from
the New York Times in regard to a
Corner" in Northwestern stock:
During the morning and in the
early part Of the day, VIM. Travers
covered shorts, paying, it is alleg-
ed, $3.50, 900 difference. Charlie La
mont stood up'to the rack, also, and
paid his difference, amounting to
nearly the same. These sums were
settled on the basis of $50. The
highest estimate of the amount of
stock of which Daniel Drew is short,
is $4,000 shares, and the lowest 49,
600. Should he settle in full upon
the closing price of Northwestern,
he will lose nearly 2,5OOOOO. Com
mon TumOr said that Henry Smith
was short 10000 shares, which will
involve him to a greater extent than
Drew. The opinion is freely express
ed that he would not pay his losses
in full, but let his brokers stand the
brunt of his contracts.
1t said that Drew was caught in
a trap by a device of Gould's, which
was ingeniously planned. Gould
went TO Drew a few weeks ago and
suggested the probability of asinge-
ing" the street on Erie, in which
transaction the latter was to appear
as bull. Drew joined in with the
idea, and went to work secretly to
buy up large stocks of Erie and
locking them in safes as fast as they
were purchased. The stock in this
market was soon gobbled up, and as
a consequence the price of Erie, be-
gan to advance. Gould also bought
Erie largely at low figures on the
street, but abstained from purchas-
ing any when it began to advance.
The stock rose to 564, 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 buying, he 'Went it alone"
and was making fair progress in bull
ling the market on his own account,
when Gould turned a new card. In
some way, he became beware of the |
fact that Horace F. Clark, Augustus !
Schell and the Vanderbilt party were
endeaVoring to obtain control of |
Chicago & Northwestern in order to
get the road into their own hands,
and supply the missing link in the
crest railway chain in the West. He
thereupon formed a coalition with
the Northwestern Clique, and going
to Drew, who still supposed he was
helping him to bull Erie, suggested
that, as 'blind" to their real opera
tions, it would be good plan to go
"short'' in Northwest, and thereby
throw the street off the scent.
Drew, relying on the judgment of his
in Erie, aequieseed in the
arrangement, merely saying that he
guessed 1t was safe to go short Of