, 1872-11-25

! value Of 230 upon Q stock the actual value
OF which is much less than that Of
the preferred Issue, which is still sell
| ing as low as 81 cents. This comparison leads
| to the conclusion that the corner in Northwest
ern is perfectly successful, fully assured by the
reported control which the bulls have over the
market, holding calls for more than the entire
capital stock of the corporation. The origin Of
the movement is stated in New York to have
/ been in certain difficulties between Jay Gould
and Henry N. Smith, formerly joint members Of
the firm Of Gould, Smith, Martin d Co. Gould
was determined to punish Smith, and Smith
equally determined to punish Could for mutual
betrayal in an effort to punish Daniel Drew.
Northwestern common stock was selected as the
battlefield, because it was in q partially aban-
and o fair one. The result has been
that Gould came out the upper
most, and Smith the undermost, dog in the fight.
This is one explanation of the movement, but
there is another which is just rs plausible. It
is said that there has been clashipg Of inter-
ests in the ownership Of the Northwestern Rail-
road for some time past. The Vanderbilt party
and the Tracy party have been at loggerheads,
and it is reasonable to assume that the corner is
as much the result Of this difference as it is Of
the personal squ.bbleB of Messra. Gould and
Smith. It isrepresented that Mr. Tracy, though
President of tho road and controlling its man
1oav {{r11 - sI7:I
successful result Of the corner, in which Com
modore Vanderbilt has been the prime mover,
must be regarded as d victory for the latter.
Though the effect Of corners upon the public
morals is pretty much the same in all cases, We
can contemplate 6 corner in stocks with less ap-
prehension than corner in grain. There is
nothing like the same amount Of innocent suf-
fering in the former case. The prominent rail-
and their operations, while they may effect the
public interest by temporary disturbance OF
the money market, do not parcel out the ulti-
mate losses among small stockholders, as
grain corner divides its real damages among the
farmers. If there are any innocent stockholders,
they have IN excellent opportunity to unload at
large prices, which cannot be done in tho
matter Of grain, where farmers encounter the
obstacles of delivery and send of their products
at pricein which there is aproft- only to reach
g market by the time the price has reacted below
cost OF production.
Tho results Of the present corner in North |
western stock will be even less subject for re-
gret than usual, because it promises the punish
ment Of the former corrupt management OF the I
Erie Railroad, and the return to the road OF |
large amount Of the moneys Of which it hns been |
aefrauded. Mr.. P. b. Watson, at present Presi-
dent Of the Erie Road, has obtained sufficient
evidence Of the former frauds upon which to
base an action for recovery Of the stolen funds
The defeat Of Smith, in tho present
corner, has induced him to furnish
information concerning the manner in which his
former partner Gould Kept his individual ac-
count and tho account Of the Erie Railroad.
Without entering into the details Of this infor-
nation, the general result WAS that all profitable
;peculations we're placed to Mr. Gonld's account,
Liz GIL 4O9AuE3 SpECu1dL4Uu6 HEI6 p1acEu LU LIS |
ccount Of the Erie Company. It is intimAted
hat about 100000 can be traced on the
'ooks Of Smith, Gould, Martin & Co., which we're
hus stolen from the Erie Road. It is also
LEGGED that Mr. Gould has made nearly this
mount Of money in lis recent Northwestern
perations. If this 1atter statement be true,
he present stock corner will be beneficial in not
My furnishing the evidence of Gould's guilt,
ut the money with which to repay Erie for it's
osses.
There il an apprehension lest the suit against
fould will fail, ashe may secure Smiths silenceby
n easy settlement Of the 1atter's losses on his
short" stock. Such an apprehension would be
if the suit depended upon Mr. Smith,
ut it does not. A1r. Watson, the President Of
'rie, has not brought this suit without having
ossessed himself Of complete evidence from
he books Of Smith, Gould, Martin
!; Co. If SO, the reconciliation Of 1Ir-
NTH would not bo enough to hsau1e Goulds
scape. Mr. Watson will etiu prosecute the .
nit, and the public will hope t11.t, With tho
videnco ho has collected he Will be successful.
he recovery Of so large an amount Of the
isk- Gould stealings would enable the road to !
feet it's change Of gauge without drawing upon
8 present resources. 4 still better result,
oweyer, would be the re-establish1nent Of for
gn confidence in American railroad stocks
hich the iniquities Of former Eric management
I'D so largely destroyed. :.
THE LAW OF NEW TRIALS
In recent article under the above caption, We :
Used the point that the errors for which appol-
Criminal Gourfa in fI,ia and nf11er States | g