Lot 94
Gould, Jay (1836-1892) American financier, railroad builder, and speculator. Two weeks before the resumption of gold payments for paper dollars (January 1, 1879), Gould sells shares of his Union Pacific stock to partner William Belden. Within a month, their stock brokerage firm would dissolves, Belden would be arrested for stealing his firm’s assets, and would accuse Gould of ruining him. Gould’s weekly losses would average $100,000.
(1) Draft Document Signed "Jay Gould" and "William Belden," one page, 8¼ x 5¼ in., New York, December 21, 1878. Lower left corner torn away. On the letterhead of "William Belden / 80 Broadway & 5 New Street." Fine condition. Draft may be in the hand of both Gould and Belden as they created the contract which they each signed. Handwritten in the top margin: "Whereas Mr Belden claims that he has made certain losses on North western RR Co stock amounting to about $75.000, which he urges were made while acting under Mr Goulds advice---"
(2) Manuscript Document, 12½ x 8 in., front and verso, December 21, 1878, with integral sheet docketed "Confidential / Mr Cuming make / 2 copies for / me in your own / hand." The final contract with interesting changes. Minor blotting. Partial separation at horizontal folds. Fine condition. In part: "…Whereas William Belden claims that he has made certain losses on Northwestern Railroad stock amounting to about seventy five thousand dollars., which he urges were made while acting under Mr Goulds advice; Now this agreement made between Jay Gould of the one part and William Belden of the other part, in consideration of the premises aforesaid, is as follows: First: Mr. [‘Bel’ crossed out] Gould sells to Mr. Belden, and Mr. Belden buys of Mr. Gould, five thousand shares of the Union Pacific stock at sixty-six dollars a share. Second: Mr Gould guarantees to Mr. Belden such an advance in the price of the stock within one year from this date as will enable Mr. Belden – to make a profit of fifty thousand dollars on said stock within one year from this date, interest on the cost of the stock to be at the rate of seven per cent in arriving at the profit. Third: Mr. Belden may at his option at any time within the said year deliver to Mr. Gould the stock back, at the cost price, with interest at seven per cent, when this guaranty will end. Fourth: this agreement shall bind the heirs Executors, Administrators and assigns of the respective parties. …"
During 1878 trouble developed. Gould's confidential secretary and bodyguard, Giovanni Morosini, claimed that Belden and his brother had robbed Mr. Gould of securities to the tune of about $3 million and came close to ruining Gould. In January 1879, the firm was thrown into receivership. The Beldens were subsequently arrested on a charge of converting $30,000 worth of securities to their own use. On January 30, 1879, the front-page story of "The New York Times." said, in part: "From the most trustworthy sources … it was learned yesterday that Jay Gould is staggering under the weight of about 169,000 shares of the Union Pacific, which he is carrying himself, and which no one will buy…".
Estimated Value $3,000 - 4,000.
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