The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1892-12-10

] DiilN Slpth iEbht %ff1s'"FfT'FN " WI fNN'fSf
and purchased Vanderbilt stock with the
proceeds Of sales at 10 per cent. Fisk is be-
( lieved to have cleared by this transaction
over 81, 10, 900. IN July the brokerage firm
/ of Fisk, Belden 4 Co. was dissolved and the
| two eonspirators at once set about securing
control of the Erie Road. To effect this
| Fisk and Gould prosecuted Mr.. Eldridge, the
President. for frauduleniy using S5O0,0OO of
the company's money to secure the passage
of the bill which had enabled them to in
crease the stock Eldridge resigned al last
and jay Gould became. President.
| When Jay Gould was made President,
| Fisk became Vice President, although there
I is little doubt but that he was the one who
| instigaied and carried out all the outrageous
moves which followed. and which caused
struggle which was probably without a paral-
/ lei in the history of the railroad system. Fisk
/ and Gould had fearful odds to contend with
/ their enemies pressed them hard, but at
every turn they met and successfully resisted
them. Suits and IitigatiOns almost without
number grew out of these manipulations, and
there was probably not court in New York
and few in New Jersey where the names of
James Fisk, .Ir, and Jay Gould did not for
several years appear upon the records in
from one to hundred cases, in which the
Erie Railroad was involved as plaintiff or
defendant.
During one of these innumerable suits
Fisk and Gould cound it necessary to leave
New York with all tine books and papers pr
the Erie concern, and for some time they and
their adherents were intrenched at Taylors
Hotel. in Jersey City. This was one of the
most desperate and critical periods in the
desperate career of these two men. They
were playing for high stakes, and Fisk,
always the most open and candid of the two,
/ is repuied to have said TO friend that it was
a question of palace in New York or n cell
in Sing Sing. 1t was then that Mr.. VIM. NJ.
Tweed came to his rescue, and by lobbying
through the State Legislature, of which he
was then apparently sole owner, the famous
Erie Classification bill released Fisk and
Gould from their exile and gave them fresh
lease of power in the Erie management.
Tweed for his reward, received place in
the Erie Board of Directors, and from that
time forward the Princes Of Eric and the Boss
of Tammany were bosom friends. Fisk and
Gould having carried everything before them
at the annual election, they drew for them
selves the longest terms in the Board, and the
road was thus placed al their mercy for six
years.
Ia January. 1872, the partnerships it
might be so called-between Fisk and Gould
was cancelled through the death Of the former
at the hands of L. S. Stokes during quarrel
over Josie Mansfield, woman of class
with whom, TO Jay Gould's credit be it said,
he had no associations.
After Fisk 5 death Gould remained at the
head of the Erie management for short time
only, when lie was finally ousted from control
by determined effort, and the late General
John A. Dix was elected President in his
stead This successful movement was led by
General Daniel +. Sictles. who persuaded Il
number Of the Directors TO join with him.
Gould was requested, as President. to call the
Board together, but refused. Mr. Archer
then called the Directors together. on March
IL, 1872 Several members of the Board at
once resigned, and their places were filled by
opponents of Gould, who was deposed from
the Presidency of the road. He made show
of resistance and held out for a few days, but
then RESIGNED from the Dictatorship, and Erie
stock went up from - TO IS at Il bound.
As soon as Gould was ousted close ex-
animation of the books was made and II dis
covered that his management mad been
disastrous one. The Indebtedness of the road
WIS found to be S64, 900, 900 more than when
he became identified with it, and for this
there was very little to show. Mr.. Gufiy,
witness in the Erie investigation. testified that
not dollar of all these millions represented
any additions to the road.
As a result of the examination of the
books also, the conclusion was arrived at
that Gould had failed TO account for nearly
SO, 600. 600 which he had obtained from the
treasury by various devices. The proof of
his actual indebtness to the company was
not conclusive from the company accounts.
which had been so cooked that it was diff
cult to get more than differences from them.
Subsequently an order for Gould's arrest
on suit to recover $4,000 900 due Erie,
with bail at 81 900, 900, was issued from the
Supreme Court. The arrest was made at the
Office Of Osborn 4 Chaplin, in Broad street,
after Gould's presence had been denied, but
the Sheriff threatened to burst the doors.
Gould was baied by Horace f. Clark and
Augustus Scheli Immediately, and finally
paid over the 1000 900 without waiting for
the matter to get into the Courts.
During these troubles Mr. Gould, in a pub
lie letter, offered to submit 30 the arbitration
of Horace Greeley all matters between him
and the stockholders, but the offer was not
accepted. The restitution which Mr.. Gould,
finally made, however, was, it is said, in as
sets which did not bring much to the impov
crushed road.
Contemporaneous with the management
Of the Erie was the famous gold conspiracy
which culminsted in the Black Friday of
1863. This conspiracy was the most remark
able in the financial history of this country.
To corner gold it was necessary to secure
the neutrality of the United States Govern
ment, and to do this bold attempt was
made to indirectly bride the President him
self For A. r. Corbin, President Grant
brotherin law, Gould bought 81 800, 900 in
gold and promised him all the profits aceru-
ing from the purchase.
Every rise of per cent. made Corbin
$l5, 600 richer. 1t was hoped that this situa
ton would reinforce the arguments through
which it was sought to make the administra
ton believe that higher gold meant better
prices for farm products, and, consequently,
more prosperity.
During the pendency of this scheme the
President was banquetted on one Of Esk's