The New York herald., 1872-11-23
ARREST OF JAY GOULD.

we'll Judging TOm lC5 CONSEQUENCES III TIE 5uuuCH
flight skyward OF the stock, was the arrest OF Mr..
Jay Gould. The causes that led to this are sufli-
cIently clear. Speculation in Northwest had
reached point where it was absolutely necessary
that something should be done, and Mr.. Henry N.
Smith, who is currently reported to have recently
been financial antagonist Of Jay Gould, seems to
have handed over to the inspection OF Mr.. Peter
H. Watson, the present President Of the Erie Rail-
way Company, the books of the old firm of Smith,
Gould, Martin & co. The consequence was the ex-
traction OF
DATA AND FACTS
from these tel-tale Volumes which are narrated at
length in an affidavit by Mr. Peter II. watson, read
ing as ollo VS.
AFFIDAVIT OF PETER II. WATSON
Ne'o York Supreme Cour-rhe Eric Railway Company
aIS city Of New being
o Sswy S q sd It's BY e Of % nit
d Ges na from witch Ss aS aoms s M
knowledge, since he became President Of. such cor
hs 'nd a%y fSss hedsssy dsyas Ss
Sg 1s; %Sss $s &
$sSa
saa ss A am 9s in s c
rns EaA
Obligations arose are as loowsThst in 1867 Jay Gould
5 @ Of the that on the 10th
forward during the times MENTIONED he aada
S against
yn asn lay sSqa
a%s eud sa'ss rnasE s% s%snsss St
ps% [Sssssss
sssSii lie ss% G1s os%paay tie % books
saa ad firm we're IRE received @ for said by JAY
ssa s'a III % Sn @s sous
ssF4s' 2 s e times e. ss% tho tRe G ASs' s 7s
c. csn ~ cTa sns the n large re number Of
sSaS s sSfsssss'ss
eap & Of
q ha nd s % s Essssys q &c sss
aha dv e iTeaH as ana n @d Of this
aorosaid and % such hcreass
By m ii the sss saa &c Ss the
shares Of such capital stock the
sd S% ana ss ana the to be
Ct Ct. The company; that Of these shares Of stock
ssra sf5s' % jay as zaSs e. & assnsy sn
BY tie 70 s deso m e sa
produced sr dsdasnS % s % o charges and
Which rsoeiSea by the Arm o% the
which, & ws n the cd on i the the
respective dates when such stock sold although
arm Gould hays ef1i q h and
sSs 2 being the net proceeds Of the sales OF stocks
Of his employment in his official capacitya large amount
hf the sn q n e @ s 5 ID Ss ,oS
books Of the rmand has converted the his own
CATION the which with interest this action on'l IS
fow-That BY reason the sale of these stocks and
other By the hf M rm while acting in such daca
n ia'a us IS tbs s as s re In Of % the ss, %
S Ss sa: sns Ss
onset and that date r as appesrs asaHS
oe ee ,sS sS0k eoaS aH dspsnea as Is nSrmsS
$ c Of s $ 81 5s GouS
ndiyduay upon the false and fraudulent pretence that
@ 1s Form
% 10 hd point Sa a'' Jay Gould
THAT ST. the
% = rs ss SDs
%
yIdual account. and as between himself and
ss1 5% account 81 the the . sss ss6s
nSesSs
msa the moneys Of t the for which he was
G 5 re-
which further sum- with interest added this action is
fhSfRat on or about the 10th day Of November 1868
Jay Gould commenced a speculation on his own indyid
the Of such
hs large ARM number apon Which shares pureass Of said he sa
%sn incurred Ssry heavy loss arising from
s sssGs'
a ls % a hs~ violation apsn G 6i S @
assS a' As g @ sS s ay 'g& ga IoaS 5
% be the Court Of The
authorize the conpany It's officers repurehase the
Re sPasss
iiasa apea ts jay SSalS ca%ssa III
on the the sfh
pears BY the books Of the firm
ssSFffs's g he
y %ss a sVRaaS hs
for at the nts s as the nominal n Il, Of
sf me d'py %
THAT At iSs time o such prslshaed purchase of said
a'ss nn
S ers the not wRSr Ky y GsaSr u Of Of IL I 'GS the
ss: Ss
The
si 6 in sea aRSn this ee to t o s %
sss dsa Ss1ss H he ssry p Of s
sngssed i .Sssulaiions il !Re shares Il. asadSg
SAs said loss "' be S cSase 'S %
ss ss sGss p @ M eSofssa"y ssf
be transferred TO his own account the further
Siss s3 60 which was then to the credit OF the said
railroad company in the books OF his firm, and
the moneys Of the company TO that extent thereby
were o;G converted ,s to his own use and both
and paid ;, against & the debt and funds oI the
ceyed from sales of stocks aforesaid, and
under the control of Jay Gould as a member thereof
and as onicex OF the company In his employment as
such; that Jay Gould thereby embezzled and mis-.
applied the moneys Of the company to tho extent
aforesaid, and was guilty of fraud in incurring
these obligations TO the company of the sums afore
said, and for which further SUMS, with interest as
hcrenalier srecdcd, M. action Is IN part brought
Scrcnh-That JAY Gould, about the month Of jan
uary 1869 having engaged in speculation in the stock
oi the New York Central Railroad through the rn and
books q the rm on the 2dday January 1870 ordered
the company in the account kept by the firm OF Jay
Gould, as treasurer OF the company, and the same
funds Of the company then il the posse .son Of ihe
them for tho said company, aud under the control Of
Jay Gould as q member thereof and as treasurer
OF the company In the OF his employment SUCH