New-York tribune., 1892-12-03
ERIE. BLACK FRIDAY AND NORTHWEST
CORNER

The most sensational period of Mr.. Goulds spec
ulative career is comprised within the i've years
that followed the close Of the war Oi Inc fcpelliol
lr was the part that he plycd in the man1gemen
Of the great Erie Railway and the so-caIled Gold
Conspiracy" which hCrtiiied tine whole country
and eliminated in Black FRIDAY In tHe
beginning of the Erie transactions, H3l.l
and his associate. Fisk seemed 10 bt little else than
the pupils and aids Of Daniel Drew, but there were
many evidences even then that Goulds MIND was
the mansti iy of the schcInerS In critical moments
lie had desire To pose as the inventor or executor
Of great cOups. He lett that To FISK, wno.e
vanity was tiat,ered by such roles. could ;
mental and emotional equipment fitted him better
10 perform the part OF silent and invisible Deus
en- machna" and this was also nioie TO his liking.
1he methods employed IN the great hghi wlcI
Commodore Vanderbilt were largely those OF the
lawyers, but the audaclous move oil an appear 10
the Legislature az a time when that body had lust
adopted a report charging all manner oil r4scality
on Drew and his associates was worthy 0i the man
who conc iNed and made il. This was Gould.
Vanderbilt had been outwltied and ted With stock
i.,ird in dcianc. of judge Barnards nJunctlons,
and Drew. could and Fisk had fled 10 jersey
itv 10 escape writs OF arrest issued against them
for contempt There they plotted their new cam
p1inn: and while yet the community was scandal
ized by the disclosures of the methods resOrted 10
by tl,. operators to compel Vanderbilt To pay vast
sums for worthless stock>-icfhoIs when ild de
lnuclrd representatives of the Judiciary of the
State as we'll as In" Iesislaturc-rOud Dolby
rislcd arrest and went 10 Albany 10 secure the
passage OF a bill to eeaze the issue Of new stock
which had discounted Vanderbilt guarantee the
bonds OF the bankrupt Boston. Hartford and Ere
concern and put perp'tual bar TO the tomno-
dore's plan of consolidation. His appearance IN
the legislative lobby gave II such an interest rs
il had never before had. Vanderbilt had won III
the legislative investigation. and hi, opposition
to the bill sought by Gould was vigorous But IN
spite of the difficulties attendant on his arrest for
contempt could persevcred and finally tired
Vanderbilt out that he Withdrew his opposition.
The bill which had once been defeated by Il vote
of 80 TO - was passed later by vote OF OF Ia
6. compromise wat patched mp by Drew
which Wall Street had rreled for months
was gradually brought to close. Drew
made over six millions ont of the Sonl,
modores effort TO corner him, and though Gould
and Fisk affected to he dissai lsiied with the
arrangement when its terms were carried
ont they were in undispnied possession OF
the Erie road and in position 10 manipulate
its stock to their hearts content Gould TOOK
the presidency in July, 1868. Within four months
the capital stock was Inflated from S3l,VVo,00o
TO Sj1 900 600. The fresh issues had brought the
price down t, A. but Could and FISK were MOI sat
isicd they wanted it lower. 30 they locked up
vast sum Of greenbacks, but Drew VINO was IN the
pool with them played them false and the scheme
10 pat down the price OF Erie fell through. Drew
was short 10000 shares and his TWO apt pupils
took their revenge on him by unlocking the green
backs, sending up the stock and compelling Drew
~ cover at Il loss of a million and half This wa/
the first of long list of similar transactions when
were brought to elimination by fhe assassination
Of Fisk in January, s12, and the revolution of the
Eric stockholders two months later. Ia" Board OF
Directors overthrow. and JAY GoulI resigned
the presidency 10 General DlN. IN November
Gould was arrested on criminal charges based on
his management OF Erie and without waiting FOR
a trial surrendered securities valued at $4,000, 900
Two-thirtls of this sum he had Just made out OF a
corner which H. engineered in the common stock of
the Chicago and Northwestern Railroad, and he
proleSsoi 10 believe that his arrest on the charge
Of having failed to account for $4,000 600 as prps
dent of the Erie road was made IN order 10 break
up the corner in which Horace f. Clark and Au-
pilstus Sch"ll concerned with him. The
greatest sufferer from the corner was Drew. but II
il said that Henry y. Smith was also squeezed
The Northwest corner was one oil the mos, sicccs>-
ful ever conducted in Wall Street. The stock
The next day il sold az 90 and two days later 200
was bid ON the third day buying in under the
rule begar and the price was run up to ?30
Drcw's brokers covered at $50. With the results
of this corner and rise in Erie which followed
the restitution land which he had f0rcscen and
80. 900 600 returned 10 the Erie treasury. In
Justice to Mr. Gould il should be- said he aEyayo
Ella imed that the property which was returned by
linn TO the Erie treasury was never he'd by him
as his own but as Il trustee.
Whether tine whole truth has ever been written
abnnt Mr. Gould's gold operations Is open 10
doubt The scheme the most gigantic one
that Wall Street had secn and it, ralniiea-
lions were exceedingly difficult 10 fol-
low The invcntigaton undertaken by
Congress committee went far enough 10
chow how zealousy the consprators abored 10
gct President Grant within their tolls. ana iihpla-
Gated persons near TO him. Unfortunately. TOO;
the President had inn0cently enough permitted
himself 10 be nut in suspicious positions, and II
was lonp before he was completely purged of the
scandal caused by Black Friday. In carrying
ont this scheme Gould and his associate,
Fisk, occupied fully the relative positions hereto
fore described. The intelligence back of the