"600 shares of Erie, some 1,900 of corporations affiliated with Erie, and 4,722 of the Oil Creek and Allegheny Valley Railroad, twenty-one thousand dollar bonds of the Nyack and Northern Railroad, and $160,000 in currency. The careful recipient of these securities and cash presently found an error of forty thousand dollars in the footing of Gould's memorandum and sent word of the shortage. Gould did not think there was such an error, but under the circumstances he would not dispute the point and came back with an additional forty thousand dollars in cash. To a modest request for a memorandum receipt, his lordship replied with exceeding dignity that his word of honor ought to be receipt enough, and handed the bundle back to Gould. Gould took it, went as far as the door, returned, laid it down, and departed in faith that his property was in safe hands. It must have been sheer sport in playing a fish which had taken his hook so greedily that led Gordon to demand that Gould separate himself from the old directorate. On March 9 Gould delivered to him his resignation as director and president of the Erie Railway Company, to take effect upon the appointment of his successor. The great covenant was complete."When the truth came out, Gordon fled the US for Manitoba, where he lived as a popular guest of high society. Rather than seek extradition, Gould sent a party of New York bounty hunters and Minneapolis policemen to seize Gordon and return him to the US. The first they did, but they were stopped at the border by Canadian customs officers, who, unconvinced by the bounty hunters' novel argument that a warrant issued by one common law country was valid in another, freed Gordon and arrested the Americans. A furious diplomatic controversy ensued at the highest levels, and Minneapolis mayor George Brackett later claimed that President Grant himself had authorized a military response "if the speedy release of the Minnesotans could not be effected legally ..." The crisis was defused when the Americans were found guilty but released with time served.
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