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diff --git a/.gitattributes b/.gitattributes new file mode 100644 index 0000000..d7b82bc --- /dev/null +++ b/.gitattributes @@ -0,0 +1,4 @@ +*.txt text eol=lf +*.htm text eol=lf +*.html text eol=lf +*.md text eol=lf diff --git a/LICENSE.txt b/LICENSE.txt new file mode 100644 index 0000000..6312041 --- /dev/null +++ b/LICENSE.txt @@ -0,0 +1,11 @@ +This eBook, including all associated images, markup, improvements, +metadata, and any other content or labor, has been confirmed to be +in the PUBLIC DOMAIN IN THE UNITED STATES. + +Procedures for determining public domain status are described in +the "Copyright How-To" at https://www.gutenberg.org. + +No investigation has been made concerning possible copyrights in +jurisdictions other than the United States. Anyone seeking to utilize +this eBook outside of the United States should confirm copyright +status under the laws that apply to them. diff --git a/README.md b/README.md new file mode 100644 index 0000000..caa8815 --- /dev/null +++ b/README.md @@ -0,0 +1,2 @@ +Project Gutenberg (https://www.gutenberg.org) public repository for +eBook #66148 (https://www.gutenberg.org/ebooks/66148) diff --git a/old/66148-0.txt b/old/66148-0.txt deleted file mode 100644 index 3c7d613..0000000 --- a/old/66148-0.txt +++ /dev/null @@ -1,8076 +0,0 @@ -The Project Gutenberg eBook of The Wizard of Wall Street and His Wealth, by -Trumbull White - -This eBook is for the use of anyone anywhere in the United States and -most other parts of the world at no cost and with almost no restrictions -whatsoever. You may copy it, give it away or re-use it under the terms -of the Project Gutenberg License included with this eBook or online at -www.gutenberg.org. If you are not located in the United States, you -will have to check the laws of the country where you are located before -using this eBook. - -Title: The Wizard of Wall Street and His Wealth - or The Life and Deeds of Jay Gould - -Author: Trumbull White - -Release Date: August 26, 2021 [eBook #66148] - -Language: English - -Character set encoding: UTF-8 - -Produced by: Charlie Howard and the Online Distributed Proofreading Team - at https://www.pgdp.net (This file was produced from images - generously made available by The Internet Archive) - -*** START OF THE PROJECT GUTENBERG EBOOK THE WIZARD OF WALL STREET AND HIS -WEALTH *** - - - - -[Illustration: Jay Gould] - - - - - THE - WIZARD OF WALL STREET - AND HIS WEALTH, - - OR - - THE LIFE AND DEEDS OF JAY GOULD - - BY - TRUMBULL WHITE. - - JOHN C. YORSTON & CO., - PHILADELPHIA, PA. - 1893. - - - - - COPYRIGHT, 1892, - By MID-CONTINENT PUBLISHING CO. - - - - -PREFACE. - - -The history of any man who had been able to distinguish himself -by acquiring in his lifetime the greatest amount of wealth ever -accumulated by one man, would necessarily be of interest, even if -his success had been won by the most ordinary of methods or the most -marvelous succession of good fortune. But when that man is one whose -career was full of the most dramatic incidents; when he won his wealth -by feats of financial daring which astounded the world; when, in short, -that man is Jay Gould, “The Wizard of Wall Street,” then, indeed, the -interest is most absorbing. Jay Gould has been more prominently before -the people of the country for the last few years than has any other -man whose prominence depended upon the magnitude of his fortune. In -his history is much to be learned, both for imitation and avoidance, -by every American. This volume contains, not only a complete account -of the life and deeds of Jay Gould for the general reader, but also -much for the student of financial affairs and Wall street methods. -The particular effort of the author has been to secure its absolute -accuracy and to make it entirely reliable. The present absorbing -interest in the career of the great financier, and the fact that every -source of information concerning him is being sought most eagerly, -makes the work particularly timely. - - TRUMBULL WHITE. - -CHICAGO, December 15, 1892. - - - - -CONTENTS. - - - CHAP. PAGE - - I. Jay Gould a Great Man 9 - - II. Youth and Ancestry of Jay Gould 18 - - III. Gould as Surveyor and Historian 29 - - IV. Gould and the Tannery War 37 - - V. Gould’s Romantic Marriage and First Railroad 49 - - VI. Gould’s Assault upon Erie 58 - - VII. Gould’s Victory and Final Defeat in Erie 73 - - VIII. The Gold Conspiracy 88 - - IX. Culmination of Conspiracy--Black Friday 106 - - X. Gould and the Western Railway Systems 132 - - XI. Gould and the Telegraph Monopoly 151 - - XII. Gould and the Manhattan Elevated 161 - - XIII. The Life of a Wall Street King 170 - - XIV. The King is Dead 181 - - XV. Jay Gould Laid to Rest 193 - - XVI. Personal Characteristics of Jay Gould 214 - - XVII. The Family of Jay Gould 226 - - XVIII. The Great Fortune and Its Inheritors 245 - - XIX. Jay Gould’s Relations with the Public 264 - - XX. A Chapter of Anecdotes 280 - - - - -ILLUSTRATIONS. - - - PAGE - - PORTRAIT OF JAY GOULD _Frontispiece_ - - YOUNG GOULD IN HIS FATHER’S DAIRY 18 - - JAY GOULD AS A SURVEYOR 29 - - CANVASSING FOR HIS BOOK, “THE HISTORY OF DELAWARE COUNTY” 32 - - THE TANNERY WAR IN PENNSYLVANIA 37 - - GOULD’S FIRST GLIMPSE OF HIS FUTURE WIFE 49 - - THE MEN OF “BLACK FRIDAY” 88 - - “BLACK FRIDAY” IN WALL STREET 106 - - GOULD BEFORE THE CONGRESSIONAL COMMITTEE 132 - - GOULD FAINTING AT DIRECTORS’ MEETING IN RUSSELL SAGE’S OFFICE 161 - - GOULD’S BIRTHPLACE AND PALACE ON THE HUDSON 170 - - JAY GOULD’S DEATH-BED 181 - - FUNERAL OF JAY GOULD 193 - - WHERE JAY GOULD RESTS 200 - - A FAMILY GROUP 226 - - PORTRAIT OF GEORGE GOULD 245 - - JAY GOULD’S PRIVATE CAR AND YACHT, “ATALANTA” 264 - - - - -CHAPTER I. - -JAY GOULD A GREAT MAN. - - -In every walk of human life, in every imaginable human occupation, -that man who stands at the very top, who is superior to all others in -that particular occupation, is of necessity a great man. No matter -how humble that occupation may be, absolute superiority in it, in -itself means greatness. The time once was when commercial eminence was -considered to belong rather to the lower classes, and was, indeed, -despised by those who thought themselves to be of knightlier blood than -their fellows. The Crusades, the Renaissance, the discovery of America, -and the impetus these gave to voyage and trade and commerce, were -potent factors in changing all of this. For the last few centuries, -commercial ability, financial capacity, knowledge of how to manipulate -men and measures in a way to increase fortune, and so to secure more -of what fortune will buy, have been more and more appreciated, until -to-day aristocracy and royalty clip coupons, families whose ancestors -trace from the Conqueror invest in stocks and draw dividends, and -the bluest blooded of all great families engage with avidity in the -struggle for business and wealth. - -Since royalty and aristocracy thus deign to enter the lists of -business competition, does it not become more true that that man -is really great, who excels in money-making capacity every other -individual in the world, who wins the prize from all his high -competitors, and in his lifetime, by his own acumen and manipulation, -creates a greater fortune, adds more to his wealth, than has ever -any other person in the world? That is what has been done by Jay -Gould, “The Wizard of Wall Street,” who has just been taken from the -possession of this enormous wealth, and whose death has awakened such -universal interest in his life, his history and his personality. - -It is hard to realize what an enormous distinction is in the fact -of being the richest man in the world. For Gould not only created -his fortune, but he made it greater than is possessed by any other -individual in the world. It is true that there are families, the -Vanderbilts, the Astors, and the Rothschilds, whose aggregated wealth -far exceeds the fortune left by Mr. Gould. But no individual of one of -those families possesses an amount nearly equal to that represented by -the Gould properties. Mr. Gould has been absolutely unrivaled in his -position as a money-maker. Though he has met with reverses at times, -and was once on the verge of actual bankruptcy, these have been due, -in slight degree, to the action of his opponents in the market, but -rather to some relaxation of his own energies, or some unforeseen -combination of circumstances. The men who have been against him, with -few exceptions, have lost while he has won. To be wealthy and to play -with the Gould securities, it has been necessary to follow him, not to -oppose. - -In downright dramatic interest, in its exhibition of results achieved -through the exercise of intellectual qualities which were themselves an -achievement, and in the examples which it furnishes of the consistent -development of traits which can scarcely be considered as the dower of -heredity, and yet were already apparent at the outset, the life story -of Jay Gould surpasses by far the histories of the great financiers, -speculators and railway managers with whom he was either directly -or remotely associated in a career which practically embraced the -whole modern phase of financial operation. Like Drew, Vanderbilt and -Fisk, he was of humble origin and began at an early age to carve out -his fortunes on lines which lay far from those to which his youthful -surroundings seemed to direct him. But his first exhibitions of -independent and original activity were directed toward the acquiring -of an intellectual equipment of an entirely different order from that -which his great rivals in Wall street boasted. Nothing is plainer than -that he was a born money-maker, but it is easily possible that if early -success in this direction had not encouraged him to bend his energies -solely to the acquisition of wealth, he might have devoted himself -not only successfully, but much to his own satisfaction, to higher -pursuits. Though he was an absolutely tireless worker in the field of -money-getting, one can scarcely study his operations, whether as a -mere speculator or as the creator and developer of great industrial -enterprises, without becoming convinced that the incitement to many -of his colossal operations was quite as much a love for intellectual -occupation as for money. Human nature is generally set down as a -universal possession, and Mr. Gould was yet a young man when the scope -of his financial operations was such as to give clear evidence that -the material things of this world were abundantly cared for in his -possessions. He had, of course, the instincts of a born speculator, -yet his was not the disposition to let results depend simply on the -accidental fall of the dice, or the turn of a card. He loved hazard, -but he loved better to compel chance to enter the channels he had dug -for it. It would be folly to deny the vast value of his work in the -development of the Western and Southwestern States, but perhaps as -great a folly to attribute a philanthropic or patriotic motive to it. - -In a history of the life of such a man as Jay Gould, it is well that -certain of his personal characteristics and certain of the chief events -of his career be summarized before a complete study of his biography -and character is made. It is thus possible better to understand both -events and personal qualities. - -The education which Jay Gould acquired through his own energies as -a youth, found its best application in this work of development. In -his purely speculative adventures he was aided by a disposition whose -traits, as has already been intimated, were formed in his youth or -early manhood. It is impossible to contemplate without astonishment -and even admiration, the spectacle of so stable a character as one -must admit Mr. Gould’s to have been, fixed in boyhood and remaining -unchanged all through a career which extended from a condition of the -most modest kind (not to call it absolute poverty) to a position from -which practically he ruled the financial world of this continent and -materially affected the fortunes of the other. With untold wealth at -his command, he was as simple in tastes, as unaffected in manner, -as abstemious in habits, as industrious, as self-dependent and -self-reliant, as when he set out in boyhood to make himself a rich -man. Nor did any of his less amiable characteristics undergo a less -change. In some of his first business ventures, can be read the same -disposition for silent intrigue, the same secretiveness touching his -intentions, the same subtlety and elaborateness of plan, and the same -indifference to the feelings or comments of others, as marked the -tremendous operations which are the climaxes of his purely speculative -career--the war over Erie and the gold operations which culminated in -that memorable and deplorable day which is written in history as “Black -Friday.” - -There was, perhaps, never a time in Jay Gould’s career when it was -possible to estimate his wealth with anything approaching correctness. -His secretive disposition stood in the way of a general acquaintance -with the outcome of his many ventures. Long after he had gained -control of the Wabash system of Railways, the Manhattan Elevated -and the Western Union Telegraph Company, during a little flurry in -Wall street, in which everybody thought the finger of Jay Gould was -hidden, but nobody knew, a broker sagely observed, “Mr. Gould has many -properties, but a brass band is not one of them.” He never went forth -trumpeting his affairs. Moreover, his wealth always consisted of stocks -and bonds which were subject to the fluctuations of the market, and -which unquestionably derived a considerable proportion of their value -from the fact that he controlled the property which they represented. -Once, however, he put aside his natural secrecy and made an exhibition -of his wealth in order to quiet some annoying reports that were current -touching his financial condition. This was in March, 1882, when he -spread the contents of his strong box before his astonished visitors. - -Mr. Gould’s secretiveness was exhibited quite as strikingly in his -benefactions as his speculations. He never achieved a reputation as -one in the habit of doing good to his fellowmen, and yet few rich men -were more charitable than he. Only once did he forego his customary -reticence, and then it was in a time of great public calamity. Yellow -fever was raging in Memphis, and subscriptions were being raised in all -the large cities of the country. Gould did not wait, but telegraphed -to the authorities of Memphis to draw on him for all the money they -needed. As a rule, like William H. Vanderbilt, he dispensed his -benefactions through a trustee. This, during the last few years of his -own life, was Thurlow Weed. - -“I am Mr. Gould’s philanthropical adviser,” said this remarkable man on -one occasion in 1879; “whenever a really deserving charity is brought -to my attention, I explain it to Mr. Gould. He always takes my word as -to when and how much to contribute. I have never known him to disregard -my advice in such matters. His only condition is that there shall be -no public blazonry of his benefactions. He is a constant and liberal -giver, but doesn’t let his right hand know what his left hand is doing. -Oh, there will be a full page to his credit when the record is opened -above.” - -It should also be added to the list of his virtues, that he abstained -absolutely from spirituous liquors, including wine, and never used -tobacco. He was, however, fond of highly-spiced food, and it is said -that indulgence in such viands caused the stomachic disarrangements -which forced him to devote himself in 1888 to the pursuit of -health. He loved flowers exceedingly, and in his country seat at -Irvington-on-the-Hudson built up one of the finest conservatories in -the world. - -Jay Gould’s career was not a colorless one, but was full of episode and -variety. He was a genuine American in that he had engaged, before he -was out of his teens, in some dozen pursuits, which number he doubled -in the next few years. Milking twenty cows in his father’s dairy; -clerking in a country store; running a hardware shop; learning the -tinner’s trade; working in a country newspaper office, and writing -a history of Delaware county, were among his earlier employments. -And then came his enlistment in a surveying corps and his experience -in map drafting, which led up to the leather industry. This chapter -in Mr. Gould’s career is a sensational one. His enlargement of the -tannery business in Pennsylvania, his establishment of a village named -for himself, Gouldsborough, and of a bank of which he was director, -were the business portions of the sensation. The suicide of his -partner and the war for possession of the tannery, between two bands -of roughs fighting one for Gould and one for his partner’s estate, -were sensations of another kind. Next Mr. Gould went into the railroad -business, drifting there by the aid of his father-in-law, who wanted -to make the best of a marriage which he had opposed. From that time to -this, Mr. Gould has been prominently before the public in financial -operations, and his history is the history of Wall street. Opinions -of Mr. Gould have been just as varied as his own pursuits. There are -those who laud him to the skies for the success he had in creating -his enormous fortune, and who think him the sum of all good things. -There are many others who think of him as being simply a close-fisted, -unscrupulous, selfish business man of undoubted ability, but with -no thought except to add to his wealth by whatever means might be -necessary at the expense of others. And there is another large class -of those who consider Mr. Gould to have been a type of all that is -worst in Americans, a man who wrecked fortunes and honor of others -to add to his own, who purchased legislatures at will whenever he had -anything to desire from them, and who had absolutely no redeeming -traits of character. It will be our effort to show what justification -there may be for each opinion. Whatever other merit may be claimed for -this modest biography of a rich man, it is certainly to be considered -as entirely fair, with no bias for or against its subject, and no -inclination to do anything but justice to his memory. No effort has -been spared to secure reliable, accurate and exhaustive information -on the history and personal characteristics of Jay Gould. Inasmuch -as great influence is exerted on every man’s life by those business -associates most closely connected with him, attention has been given -to those other noted financiers whose association with the “wizard” -have been the nearest. The ever-present influence of ancestry and -immediate family make that subject also an essential one to the true -understanding of the man. The history of “Black Friday” and its -disastrous consequences are treated in full, also the investigation of -the Senatorial Committee and Gould’s connection with Missouri Pacific -and Western Union. His domestic life, his yacht, his home on the -Hudson, his magnificent conservatory, all indications of the spirit and -tastes of the man, are also given careful attention. - -The early life of such a man must perforce afford an interesting study, -and no apology is necessary for a pretty full account of Jay Gould’s -boyhood, youth and early manhood. - - - - -CHAPTER II. - -YOUTH AND ANCESTRY OF JAY GOULD. - - -Many who knew Mr. Gould intimately are in the habit of asserting that -his origin must have been Hebraic. No one pretends to say how many -generations back the Jewish blood was in the family, or that Mr. Gould -was aware of its existence in him. But both his names, Jason, or Jay, -and Gould, served to strengthen this belief in those who held it. The -twisted form, “Gould,” was suspected of being changed from “Gold,” -which is a common prefix in the names of inanimate and natural objects -which certain Jews in Europe were compelled to adopt as surnames in one -period of their history. His habits of thought and his extraordinary -intellect were both Jewish, these people assert, with how much or how -little basis in the actual fact of his origin, no one can ever decide. - -Mr. Gould was certainly American in the character and extent of his -self-creation and success. Born of poor parents, on a poorer farm, he -began to make money to pay his way through school, and he was a partner -in business enterprises while yet a lad. - -[Illustration: YOUNG GOULD IN HIS FATHER’S DAIRY.] - -But so far as Mr. Gould himself has been able to decide, he came of -Puritan stock than which none is more diametrically removed from the -Hebraic. He was born on May 27, 1836, in the little post-village -of Roxbury, Delaware county, New York state. Nearly half a century -before, while Delaware, Ulster and Otsego counties were yet one, his -grandfather came with half a dozen Puritan families from Fairfield -county, Connecticut, and took up land near the land which became Jay -Gould’s birth-place. This grandfather was Captain Abram Gould. He had -been a Revolutionary soldier and was described as a “grim, earnest, -honest man.” To him was born in 1792, a son who was named John B. -Gould, the first male child born in the new settlement. John B. grew -to manhood, was three times married, and Jay was his son by his first -wife. The boy’s mother was a pious woman, a regular attendant of the -Methodist services held in the “yaller meetin’ house,” where Jay also -imbibed such religious notions as found a foothold in a nature not much -given to the contemplation of spiritual things. The father was a small -farmer and kept a dairy of twenty cows. - -Until he was fourteen years old Jay lived on the farm, picking up -such a meager education as attendance from four to five years at a -district school, which was closed during the greater part of the year, -afforded. This school was finally closed altogether by the breaking out -of the “Anti-rent War,” as it was called, an uprising of the farmers -against the efforts of persons who claimed to have bought the land from -the Indians to collect an annual rental. Jay was dissatisfied with -farm life, which indeed offered nothing, under the circumstances, to -satisfy his boyish ambitions. The reasons of his dissatisfaction he -once set forth as follows: - -“As I was the boy of the family I generally brought the cows in the -morning and assisted my sister to milk them and drove them back, and -went for them again at night. I went barefooted and I used to get -thistles in my feet, and I did not like farming in that way. So I said -one day to my father that I would like to go to a select school that -was some twelve or fifteen miles from there. He said all right, but -that I was too young. I said to him that if he would give me my time, I -would try my fortune. He said all right, that I was not worth much at -home and I might go ahead. So next day I started off. I showed myself -up at this school, and finally I found a blacksmith who consented to -board me, as I wrote a pretty good hand, if I could write up his books -at night. In that way I worked myself through this school.” - -During these years of the embryo financier, he was a pale, slender, -delicate little fellow, studiously inclined and disliking the -customary sports as much as the toil of the people around him. It is -remembered of him that he was different from the other boys with whom -he associated in school. He was not what is generally termed a manly -boy. He kept out of the rough good-natured games. He preferred to -remain indoors, and at noontime cuddled up in some remote corner of -the school-house, busy about nobody knew what. When approached by the -others with invitations to come and join them, he would refuse. If in -banter the boys attempted to force him to join them, he would make a -great outcry, and breaking away from them, would sit and mope until the -school was called to order. Then he would go to the master’s chair and -enter a tearful complaint against his enemies. The master would thrash -the other fellows, and little Gould would be tickled. - -It was because his father became unpopular in the village by opposing -the anti-rent movement at that time, that young Gould was obliged to -leave the school nearest his home. He waited until he was fourteen -years old. Then, after pondering over his prospects, he formed a -resolution, and at once put it into practice by asking his father’s -permission to leave home, saying that he was confident in his ability -to take care of himself. His father was inclined to be amused at the -boy’s request, which was made with much earnestness, and thinking that -it was a mere passing whim, returned a careless affirmative. The family -were astounded, however, the next morning, when little Jay entered the -breakfast room equipped for his journey out into the world. He ate his -breakfast quietly and, arising from the table, held out his hand to his -father with a hearty “good-bye, father.” His father was amazed at his -determination, and his stepmother and sisters entreated him tearfully -to remain at home. Unshaken in purpose, however, the future “Wizard of -Wall Street” hastily caught up his little bundle and left his parent’s -house. His bundle contained a spare suit of clothes, and he had fifty -cents in his pocket. - -Young Jay trudged hopefully through the mountainous road between -Roxbury and Hobart, where there was an academy that he had long desired -to enter. He went directly to the principal of the academy and told him -of his anxiety to obtain an education and his desire to get employment -that he might earn money to pay the tuition fees. The principal became -interested in the boy and secured for him the position of bookkeeper -in a store kept by the village blacksmith. This school was kept by Mr. -Oliver, and Jay’s course there was completed in 1851. During this year, -however, he must have made considerable progress in mathematics, in -spite of the fact that it used to be related of him in the neighborhood -that he grew tired once of going to school, and was locked up one -morning in the cellar by his father as a measure of correction, and -forgotten until his non-return in the evening caused comment. The -taste for mathematics it was that opened up to him the first steadily -lucrative employment in which he became engaged, and also led him, by -easy steps, into the career which destiny seemed to have marked out for -him. - -On leaving school he got a place as a clerk in a tin shop in Hobart, -and at fifteen years of age was a partner in and manager of the -business. Not only that, but this amazing boy was up at daybreak every -day to pursue the study of surveying and such engineering as he found -books and instruments to help him to. Moreover, when the elder Gould -sold his farm, young Jay took him into the tin shop on a salary. - -Innumerable anecdotes are related of Jay’s early life. All the world -has heard the mouse-trap story. It was in 1853, when the World’s -Exhibition was held in New York, that young Gould, then about seventeen -years of age, is said to have made his first visit to the metropolis -in which he was to become such a power. He carried with him a showy -mahogany case, containing an invention which the boy hoped would bring -him fame and fortune. The invention was a mouse-trap. He entered a -horse-car and, leaving his valuable model on the seat, stepped outside -and stood on the platform, where he could view the glories of the great -city. The box was picked up by a thief, but not without the observation -of young Gould, who pursued the rascal and captured him. This exploit -was related next day in the _Herald_, this being the first newspaper -reference to Gould, whose renown has since filled columns of the daily -press for years. The mouse-trap was a success, but its inventor has -been far more successful with his future traps, which he laid for -speculative mice, and with which he caught them all his life. - -That Gould’s great fortune was not the result of a streak of luck, but -of strict attention to business and hard work, is clearly proved in all -the events of his life. His plans were the result of careful thought -and they were carried out by hard work. The man in whose family young -Gould worked for his board when going to school thus speaks of his -conduct at that early date: - -“He was an excellent boy. His habits were good and he devoted most of -his evenings to study. He was always the first one up in the morning, -and he had the fire burning and the tea-kettle boiling by the time my -wife was ready to prepare breakfast.” - -It was while working in the tin store, shortly after this, that Gould -took part in a transaction in which one cannot fail to recognize one of -the distinctive traits of his future business career. If the king of -Wall street never went hunting for snipes with a brass band, neither -did the country lad. The merchant for whom he was working also did a -real-estate business. His employer was negotiating for the purchase -of some property belonging to an estate in chancery, and Jay carried -on the correspondence for him. By virtue of his position he thus -learned the particulars of a bargain which his employer desired to -make on the piece of land. The executor demanded twenty-five hundred -dollars, but the would-be purchaser offered only two thousand dollars. -Jay undertook a little investigation on private account, and became -convinced that the property was bound to appreciate in value. While -the negotiations were in progress, Jay borrowed twenty-five hundred -dollars of his father, and outbidding his employer, quietly scooped -in the property. He had the deed made out in his father’s name, and -within two weeks sold out for four thousand dollars. It is said that -his employer looked at the transaction in the light of a breach of -confidence. The result was that it caused a separation between the -merchant and his clerk, and broke up a little romance which is said to -have existed between the young speculator and a young female member of -his employer’s family. - -This was practically the end of his life and associations with the -little villages, Roxbury and Hobart, though his map work and surveying, -in the following years, were largely done in the surrounding counties. -As a matter of fact, he had exhausted the possibilities for him in -those country villages. He had squeezed what knowledge and profits were -to be obtained there, and was ready to seek new worlds to conquer. -While the little towns furnished him no inducements for permanent -residence, and but little of the start toward his colossal fortune, -nevertheless, the influences that the towns and their people exerted -on his early life must be credited with much of the better business -qualities, of perseverance and method that gave much of his success in -later years. - -Gould’s mother died in 1841, when he was but five years old. His father -died in 1866, and some years ago their distinguished son erected -over their graves a handsome monument in the village cemetery. The -elder Gould had a farm of about one hundred and fifty acres, and was -esteemed by his neighbors as a worthy citizen. The house in which Jay -was born and spent his boyhood is described as a “two-story, box-like -frame building covered with a coating of white paint.” In July, 1880, -Jay Gould visited his birth-place and also Hobart, where he went to -school. He used to walk the entire distance to school every Monday -morning, returning Saturdays. He was enthusiastically received by the -inhabitants at the time of his visit, as the most noted man ever born -in that region. When he visited the old house, it is to be wondered -if he recalled the first instance in which he ever showed a combative -spirit of bravery. It was during the Anti-rent War, when a party of -anti-renters visited his father’s house to compel him to cease paying -rent, John B. Gould and a neighbor, Hiram Moore, belonging to the -conservative farmers, known as “high-renters.” The “rebels” were masked -and in bad temper, but John B. Gould stood out stoutly for his rights, -while ten-year-old Jay, who stood in the doorway at his side, urged his -father to shoot his assailants down. John B., like the son in manhood, -was small of stature, and had the additional misfortune of having one -leg shorter than the other, but he probably inherited some of the -rugged qualities of grim Captain Abram, and these were likely to be -accentuated by the struggle for existence in the rough sterile country -of their habitation. The vigilance committee, at any rate, left the -little man unharmed, though they promptly proceeded to tar and feather -his neighbor, Hiram Moore. - -These anti-rent troubles were caused by the refusal of the occupants -of certain large tracts of land in Delaware and adjacent counties, to -pay an annual rental to persons who claimed to have purchased the land -from the Indians. Such rentals had been paid with a fair degree of -regularity up to 1844, when the farmers rebelled, declaring that the -exactions were oppressive and unlawful. In some cases the rent exacted -had consisted of so many bushels of wheat, a certain number of fowls or -a few days’ labor per year. In other cases cash payments were demanded. - -Secret organizations were formed in Delaware county, and some of the -aggressive movements were particularly directed toward John B. Gould, -who declined to join the anti-rent party. The officers of the law were -resisted in their attempts to levy on or sell property for non-payment -of rent. The anti-rent men claimed that the land really belonged to the -Indians, and they armed themselves and went about the country disguised -as Indians. They carried tomahawks and applied tar and feathers to -several men whom they accused of persecuting them. Mr. Gould had in -his possession for many years one of the tomahawks that was brandished -by the Roxbury “Indians,” and he could readily recall the events that -preceded and followed the battle of Shacksville, in which a body of -armed anti-renters, in resisting a sheriff’s posse, killed several -men. Gov. Silas Wright was then obliged to declare several counties -in a state of insurrection and many arrests were made. The state -authorities overcame armed resistance, but the anti-rent men carried -their grievance into politics and succeeded in electing John Young for -Governor over Silas Wright. - -Mr. Gould used to tell his intimate friends that whatever nerve he -possessed he inherited from his father. - -While working at the tin shop, young Gould retained all his fondness -for mathematics, and mastered several of the best authorities on -surveying, trigonometry and engineering, besides reading a course of -history. He rose at four in the morning, and devoted the time he could -call his own to reading and study. Having made a particularly nice -tin whistle, he invited the boys of the town to join him in amateur -surveying expeditions, and with a borrowed compass and other necessary -instruments, the boys acting as flagmen and chain-bearers, he soon -became an expert surveyor. In the tin business he made himself so -useful that at the age of fifteen he was a full partner in the concern, -and when he visited Albany and New York to purchase material, he -succeeded in opening accounts with Phelps, Dodge & Co. and other firms -well-known to the public. - -It was at this point in young Gould’s career that the unvarying routine -of life in a tin shop became too monotonous, and he abandoned it for -a pursuit that would at least enable him to see something of the -surrounding country, and possibly be more profitable. He decided to -make use of the knowledge that he had gained and become a surveyor. - -[Illustration: JAY GOULD AS A SURVEYOR.] - - - - -CHAPTER III. - -GOULD AS SURVEYOR AND HISTORIAN. - - -The tin shop was profitable but slow, and with an outcropping of -the avidity which he afterward showed, he sought for something more -lucrative. In 1852 he transferred his interest to his father and -arranged to take charge of a surveying party at twenty dollars a month. -Gould had heard of a man in Ulster county who was looking for an -assistant. He was making a map of that county and Gould wrote to him. -When he left home to take the position, his father offered him money, -but he left all his capital in the store, burned his ships behind him, -and took only money enough to pay his fare to the place where the new -position was to begin. His new employer started him out to make the -surveys, to see where the roads were and to locate the residences. He -also instructed young Gould to get trusted for his living expenses -along the way, and that he would pay them following after him. Two -or three days later, Gould ran against the first objection to this -arrangement from one of his entertainers, who knew that the employer -had already failed three times. He agreed to trust young Gould but -would not trust the employer. The boy wandered on after this rebuff -until three o’clock, before making an effort to get his dinner. His -wretchedness and its relief are interestingly told in a letter that Mr. -Gould wrote to a friend some years later. - -“I was out of money--that is to say, every cent I had at my command -was a ten-cent piece, with which I had determined not to part. Fall -was approaching, and, unless our surveys were completed before winter -set in, the final completion of our enterprise would be necessarily -delayed until another season, subjecting us to additional expense, -which I feared would prove hazardous to the enterprise. I was among -entire strangers and consequently without credit. I could not spare -time to go to Delaware county after funds, and I had not money to reach -there. If tears had been coin my empty coffers would soon have been -amply replenished. In this emergency a welcome expedient accidentally -presented itself. I was prosecuting my surveys at this time in the -town of Shawangunk, and, while the tears were even trickling down my -cheek, a farmer came running after me and asked me if I would not -return with him to dinner and make a ‘noon mark,’ which is a north -and south line, to indicate, by the shadow caused by the rays falling -against an upright object and striking the line, the hour of midday. I -accepted the invitation with pleasure, as a couple of crackers was all -I had eaten since the preceding night, and I had been working since -daylight and was consequently hungry and faint. After dinner I made -the noon mark, and, turning to leave, the farmer asked me my bill. I -replied that he ‘was welcome.’ He insisted, however, on paying me a -half dollar, which he assured me a neighbor had paid for one, which I -accepted, and started on my way, and had I that moment discovered a -continent it would have afforded me less joy. I saw that I could turn -this discovery to practical account, and I felt already half rich, -and I prosecuted my labors with a lighter step than for many a day. -The fame of my noon marks preceded me, and the applications from the -farmers were numerous. By this means I paid all the expenses of the -surveys and came out at the completion with six dollars in my pocket.” - -In the early part of this embarrassment he had no overcoat and -sometimes traveled forty miles a day on foot. His employer failed -completely and Gould continued the business for himself. Jay proposed -to the two other young surveyors, who had also been engaged on the -work, to complete it on their own account. The other two young fellows -had money, and when the map was ready for the engraver, Jay, finding -his colleagues anxious to put their names on it, sold his interest to -them for $500. With that capital he undertook similar surveys of Albany -and Delaware counties, and was successful in turning out satisfactory -maps of those regions. He sold enough maps to bring his capital up to -$5,000. The accuracy of his survey of Ulster county in the meantime, -had attracted the attention of John Delafield, in Albany, who applied -to the Legislature for aid in the completion of a topographical -survey of the entire state by Mr. Gould. Mr. Delafield died before -any material progress was made in this work. His application to the -Legislature was not successful. Some particulars of interest in regard -to the map-making business are related by Oliver J. Tillson, one of his -partners in the map-making enterprise, after the failure of the man -who had first employed him in the business. Mr. Tillson confirms Mr. -Gould’s account and tells of the bargain in which the latter sold out -to his partners. Here is a copy of a receipt given by Gould on that -occasion: - - DECEMBER 27, 1852. - - Received of Oliver J. Tillson and Peter H. Brink ninety dollars and - wheel in full of all debts and demands and dues against them and - the Ulster county map. - - JASON GOULD, - for JOHN B. GOULD. - - -It will be observed that he signed his name “Jason,” not Jay. He was -christened “Jason,” but about this time began to change it to Jay, by -which he was ever after known. “There wasn’t any foolishness in Jason’s -books,” says Mr. Tillson, referring to the books in which Gould had -made his notes of the surveys. “He was all business in those days, as -he is now. Why, even at meal times he was always talking map. He was a -worker, and my father used to say: ‘Look at Gould; isn’t he a driver?’” - -[Illustration: CANVASSING FOR HIS BOOK “HISTORY OF DELAWARE COUNTY.”] - -This, in fact, is the testimony of all his contemporaries. From his -earlier years he was absorbed in schemes for making money, and his -whole aim in life was to “get on.” With every passing year his -ambition broadened, until it enveloped a continent. - -It is a striking coincidence that young Gould and his two partners in -the map business were sued by the man who first employed the former -in the project, and they placed their case in the hands of Lawyer T. -R. Westbrook, who succeeded in having the suit dismissed. Westbrook -afterward became (and this is the coincidence) the supreme court judge, -who years after scandalized the legal profession by holding court in -Jay Gould’s private office and issuing an order in one of the Manhattan -railway litigations. - -He and his cousin, with whom he entered into partnership at Albany, -increased the map business to the extent of sending surveyors into -various portions of Ohio, Pennsylvania and Michigan, but afterward the -contracts were transferred to a surveyor in Philadelphia. - -From this time he was continuously employed as a surveyor, until -a severe attack of typhoid fever compelled him to give up outdoor -exposure. He had determined to make a complete survey of the entire -state of New York, and he did complete maps of Albany county, the -village of Cohoes, the Albany and Niscayuna Plank road and Delaware -county. He also surveyed Lake and Geauga counties in Ohio, Oakland -county in Michigan, and a proposed railroad from Newburg to Syracuse. -Then he was seriously ill for several months, but his money was not -used up, and he wrote with some degree of interest and also profit a -history of Delaware county and partial histories of Greene, Ulster and -Sullivan counties. - -Gould had gathered his ideas of casual writing from a brief experience -in a country newspaper office, where he had worked gratuitously. -The history of Delaware county was four hundred pages long, and is -said to have been an exceedingly creditable performance, both as an -example of diligence and care in the collection of facts and skill -and taste in the literary presentation of them. It never came into -general circulation, however, probably because the printer, who lived -in Philadelphia, insisted, in spite of “copy” and proof corrections, -in spelling the name of the author “Gold.” When the books arrived in -Roxbury and the young historian discovered the blunder he shipped them -all back to the manufacturer and would have nothing more to do with -them. - -Gould’s taste of money and profits had acted upon him almost as does -the taste of blood to a lion. By this time he was making enough money -to furnish himself a realization of what money could do and to make -him want it with an insatiable desire. His child life had been a short -one, and he was a man in business and responsibility at an age when -most persons of no greater age are considered to be but the merest -children. And what there was of his child life had been cold, and not -of a character to teach him, what few yet know, that money is the least -important thing in the world. All his life he had felt the lack of -it. He had been needy. He had been compelled to struggle to supply -his physical necessities, and then at times they were but scantily -supplied. One favorite sister, his elder one, who was his first teacher -of mathematics, was almost the only person whose recollection at home -was any delight to the boy and young man. So, now that his well-applied -and earnest labors have brought fruit to the extent of several thousand -dollars of cash capital available to him, it is not strange that he -sought for some enterprise in which the profits would be certain and -large. This opportunity opened before him and he grasped it. - -It is very doubtful if, at that period in his career, young Gould had -ever read the works of Shakespeare, but be that as it may, he followed -that great bard in the opportunity which was now his. Shakespeare says: - - “There is a tide in the affairs of man - “Which, taken at the flood leads on to fortune. - “Omitted, all the voyage of our life - “Is bound in shallows and in miseries. - “On such a full sea are we now afloat, - “And we must take the current when it serves, - “Or lose our ventures.” - -Gould’s tide was in; it was turning, and the chance of his life -was waiting to be taken. It was this same faculty of being able to -recognize what was the right thing to do, that all his life stood him -in good play. He recognized it now, and changed the whole current of -his life. - -The lessons to be learned from this early period of the life of the -one who was in future time to be the “Wizard of Wall Street,” are not -in anything obscure. Unceasing vigilance and unflagging energy were -the qualities that were most prominently developed in him from his -very youth. These qualities properly directed and controlled, are in -this age bound to win success for any young man. Gould never lost an -opportunity to make more money by increased efforts. He was not afraid -to assume any amount of extra work if he saw in it a just amount of -remuneration. From the time when he left his father’s house and started -out into the world to take care of himself and make his own living, -there was never a man with whom he came in contact who did not consider -the young fellow a valuable person to have attached to his business. -Gould always made it a point to prove himself valuable. He made his -employer’s interests his own, and was always ready for whatever -appeared necessary to be done. In all of this, his example is most -worthy of emulation. And while it is not to be expected that the same -efforts will bring to every one equal results, one may rest assured -that they will amply repay for their adoption. - -[Illustration: THE TANNERY WAR IN PENNSYLVANIA.] - - - - -CHAPTER IV. - -GOULD AND THE TANNERY WAR. - - -From the mildly humdrum life of school boy, tinker, surveyor and -bookseller, Gould’s career now changes to an intensely dramatic period. -While pursuing his avocation as a surveyor, he made the acquaintance of -Zadock Pratt, a local celebrity who lived at Prattsville not far from -Roxbury, for whom he had done some surveying. Pratt is described as -an ignorant man who had amassed what at that time and in that section -was considered an immense fortune. He was worth a hundred thousand -dollars, and had the largest tannery in the country. He had also been -to Congress, and, as is usual with such district nabobs, he was a very -vain man. How he happened to become attached to Jay Gould does not -appear. Mr. Gould himself once said: “While I was carrying on these -surveys, I met a gentleman who seemed to take a fancy to me.” Zadock -Pratt was a famous man in his days. He was not only the biggest tanner -in the country, but he was also a power in the politics in the state. -During his ten years’ service in Congress, at least one of his speeches -attracted widespread attention. He was one of the earliest advocates -of cheap postage, and he moved the establishment of the Bureau of -Statistics, which has since developed into the Department of the -Interior. He also moved the first survey of the Pacific railroad line. -When he ceased his Prattsville tannery in 1845 he estimated that in -twenty years he had used one hundred and fifty thousand cords of bark -and wood, had employed thirty thousand men, had cleared twelve thousand -acres of land and tanned over one million sides of sole leather. He -was, however, nearly seventy years old when he interested himself in -Gould. The latter was fortunate in obtaining the confidence of this -man. The history of his association with Pratt, and later with Leupp, -is not contained in legislative and law reports, as are other portions -of Gould’s career, but there are several very circumstantial accounts -extant based on the testimony of eye-witnesses, some of whom may still -be living. - -One story has it that the young historian had artfully flattered Pratt -in his “History of Delaware County,” and so won his good opinion. -However this may be, certain it is that Pratt asked the young man -who had surveyed his place in Prattsville to embark with him in the -business of tanning leather. Gould agreed and immediately demonstrated -his capacity for managing the new venture by going over the Delaware -and Lackawanna railway, then recently completed, into Pennsylvania, -on a search for a site of the proposed new tannery. He found a large -tract of land growing hemlock in Lackawanna county and reported the -fact to Mr. Pratt. Soon after he started for the hemlock woods again, -and this time he made contracts of purchase with their owners. In his -next expedition into Pennsylvania he took fifty or sixty men with him -to build the tannery. The site chosen was in the midst of the forest, -fifteen miles away from the nearest village. The men took with them a -portable sawmill. Gould went in and chopped down the first tree which -was sawed up, and transferred it into a blacksmith shop, under the -roof of which Jay Gould passed the first night, sleeping on a bed of -hemlock boughs. Thus the tannery, “a very large one, the largest in the -country at that time,” to use Mr. Gould’s own words, was built. Near it -there soon sprung up a village which was called Gouldsboro, and in this -village Gould established a bank of which he elected himself director -by means of proxies obtained from relations whom he had persuaded to -take stock. - -Pratt was taken with young Gould’s snap and energy and considered him -just the kind of material to use in pushing a new enterprise. Pratt -furnished all the capital and Gould conducted the active operation. -The capital of the firm was $120,000, and the tannery at Gouldsboro, -Pennsylvania, became the biggest concern of its kind in the country. -Gould threw the whole energy of his being into the enterprise. Pratt -made occasional visits to Gouldsboro, but the business was left -practically in Gould’s hands and it grew rapidly. After a while Mr. -Pratt became dissatisfied with the condition of affairs. Apparently -a rushing business was being done from which there was no adequate -return. After awhile, Mr. Pratt having invested $55,000, sent an agent -to Gouldsboro to investigate affairs. - -The books seemed to be so mixed that it was quite impossible to -ascertain just how the firm stood. Gould soon saw that his partner -was becoming suspicious and determined to be ready for him. On the -growth of the business Gould had, of course, occasion to frequently -visit New York, where he became acquainted with most of the merchants -in the “Swamp,” then, as now, the center of the leather trade. Among -others, he became acquainted with Charles M. Leupp, a merchant of the -old school, honorable and correct in all his dealings. He was a man of -great refinement and of poetic temperament, and possessed many literary -and artistic tastes. He was a man of wealth and owned a fine mansion -on the corner of Madison avenue and Twenty-fifth street. This mansion -is still standing, but has been altered into an apartment house. In -Mr. Leupp’s time it was probably the handsomest and best constructed -private dwelling in the city and cost about $150,000. - -It was an evil day for Mr. Leupp when Gould came to him and proposed -that he advance the money to purchase Mr. Pratt’s interest in the -tannery. That was the beginning of Mr. Leupp’s troubles, but at that -time he considered the proposition an advantageous one and he consented -to advance the cash. Gould never seems to have had at any period in his -career any difficulty in interesting the wealthiest and most powerful -men in his schemes. He has himself said that it is just as easy to -obtain the acquaintance and secure the friendship of the most powerful -as of the most insignificant if only one will set about it in the right -way. Well, Gould returned to Gouldsboro with Leupp’s backing. He found -Pratt looking over the books and puzzled by their intricacies. He -discovered that Gould had started a private bank at Stroudsburg in his -own name, and he became suspicious that the firm’s funds were used in -the bank. Pratt then demanded an explanation and finally threatened to -close up the tannery and dissolve the partnership. Gould protested that -this would ruin him, when Pratt said that he must buy or sell. This was -what Gould was waiting for, and he told Mr. Pratt to make him an offer. -Pratt gave his energetic young partner the choice of two alternatives, -either to take $10,000 for his interest in the business and retire from -the firm, or pay $40,000 for the interest of the senior partner. Gould -got ten days’ time in which to make up his mind, and at the expiration -of that period surprised Mr. Pratt by buying him out on his own terms. - -Of course he drew on Leupp for the money. This made Gould a partner -of Leupp with full powers. He continued with Leupp the policy he had -begun with Pratt. He branched out in many speculations in Leupp’s -name, but without his knowledge. It is said that he bought another -tannery, attempted to get up a “corner” in hides, and in other ways -entered into many hazardous enterprises. He continued to draw on Leupp -for money and to display his incapacity as a bookkeeper until Leupp -became suspicious, just as Pratt had. Meanwhile the panic of 1857 had -swept over the country and unsettled all business operations, and when -Leupp discovered the extent in which he had been involved in Gould’s -speculations he thought that he was ruined. He went to his magnificent -home one night and, in a fit of despondency, shot himself dead. It is -not certain but that Gould’s schemes would have turned out all right, -and to Leupp’s, as well as to Gould’s advantage, but it is a fact -that Leupp’s partners and heirs have always felt very bitter against -Gould, and could not help believing that he was indirectly the cause of -Leupp’s sad and untimely end. - -Mr. Leupp’s old-fashioned notions had been terribly shocked, for Gould -had gone into corners in hides and other tanneries which might and -might not have turned out well. When he found that his partner had -bought not only all the hides then in the market but all that were to -arrive in the ensuing six months, he literally lost his reason, and -his suicide occurred after a stormy interview with Gould, who remained -imperturbably cool and simply turned on his heel and left the office. - -It is related that in the excitement and passion of Black Friday when -a mob surged through Wall street, a voice was heard above the tumult -shouting the awful question: - -“Who killed Leupp?” - -And the answer is said to have come from a hundred throats: - -“Jay Gould!” - -Prior to the fatal shot, Gould had arranged with Congressman Alley, of -Massachusetts, to take the works and thus relieve Luepp and Lee, who -was also a partner. But the suicide of the senior partner stopped the -final consummation of this plan, and, Gould always insisted, stopped -the way to a profitable continuance of the works. - -Mr. Gould then negotiated with Leupp’s daughters for the control of -the tannery. It is stated that they demanded sixty thousand dollars, -the amount Leupp had originally advanced. Gould agreed to this, but -proposed a plan by which the payments should extend over a term of -years--ten thousand dollars cash and a like amount every year until -the entire indebtedness had been liquidated. When the papers were -drawn up it was found Gould had made no provision for paying interest. -Negotiations were broken off, and Mr. Lee, a relative and partner of -Leupp, hastened to Gouldsboro and took possession of the tannery in -the name of Leupp’s heirs, taking the precaution to hire a lot of men -to help him barricade and guard it. Gould arrived a day or two later -and determined to capture the tannery at all hazards. Gouldsboro was -a village of about three hundred inhabitants, situated some distance -from the railway station, and besides the tannery the most important -building was the hotel. Mr. Lee, who, like Mr. Leupp, is described as -an honorable, warm-hearted man, but with more courage and grit, had -the tannery guarded by about thirty or forty men whom he had hired at -Scranton. - -Gould, as soon as he arrived, began active operations. He interested -nearly the entire population of the place in his behalf. They knew him -and Lee was a comparative stranger. Gould told every one he met that -he owned the tannery, that Lee and his cutthroats were endeavoring -to get the property away from him, and that if they succeeded the -business would go to wreck and ruin and the place would suffer a big -loss. He had soon an armed gang of about 150 men around him prepared -to fight for him. They were a tough looking set of men. He took them -to the hotel, where he gave them an oyster supper, and then mounting -an empty box addressed his forces, telling them to use no unnecessary -violence, but to “be sure and get the tannery.” This was probably the -first and only speech Gould ever made in all his life. Filled with -oysters and whisky, the men made a determined charge on the tannery, -Gould directing everything, but prudently keeping in the background, -for he heard that Lee had a loaded musket ready for him. The battle -was fierce but short. The barricaded doors were battered in and Lee’s -men were driven from the tannery. Two men were badly wounded. One of -Lee’s party was shot through the breast. Warrants were issued for the -arrest of all concerned. Many of the men fled from the place never to -return. Those arrested were afterward released on bail. Gould was left -in possession of the property, but it did him little good. Lee began -legal proceedings against him and Gould brought counter-suits, and -this litigation was continued until the business was destroyed and the -tannery abandoned. - -In the New York _Herald_ of March 16, 1860, is given the following -account of the battle: - - - TANNERY INSURRECTION IN PENNSYLVANIA. - - BATTLE BETWEEN THE FORCES OF THE SWAMP LEATHER - DEALERS--THE LEUPP AND LEE TANNERY, IN - GOULDSBORO, ATTACKED AND DEFENDED--SIDES - OF LEATHER USED FOR BREAST-WORKS--INSURGENTS - TWO HUNDRED - STRONG--THE TANNERY - TAKEN--FLIGHT - OF THE DEFENDERS--WOUNDED - FOUR. - - -About half-past ten o’clock on Tuesday morning the lock was wrenched -from the stable, the men having been concentrated into the tannery -and the stable being unguarded. A little past twelve the tannery -itself was attacked by a mob variously estimated at from one hundred -and eighty to two hundred and fifty men, armed with axes, muskets, -rifles and other weapons. Without a demand of possession or summons -to surrender, the doors were beaten in, and but a few blows had been -struck by the assailants before they began to fire ball and buckshot -through the building, raking it in every direction. As vigorous a -defense was made, by a force of fifteen men in the story attacked, with -tannery sticks, stones and four revolvers, as was possible against -such overwhelming odds. The tannery was finally carried on all sides, -and those who did not escape were violently flung from the windows and -doors, while the assailants rushed through the buildings, yelling like -Indians, pursuing the fugitives with their guns in every direction. -In the action many contusions were received and four gunshot wounds, -and had it not been for the large number of sides of leather hung up -the lofts, very few of the defending party would have escaped without -wounds. - -Mr. Jay Gould, in his version of the affair, in which he endeavors to -exculpate himself, says: - -“I quietly selected fifty men, commanding the reserve to keep aloof. I -divided them into two companies, one of which I despatched to the upper -end of the building, directing them to take off the boards, while I -headed the other to open a large front door. I burst open the door and -sprang in. I was immediately saluted with a shower of balls, forcing -my men to retire, and I brought them up a second and third time and -pressed them into the building, and by this time the company at the -upper end of the tannery had succeeded in effecting an entrance and the -firing now became general on all sides and the bullets were whistling -in every direction. After a hard contested struggle on both sides we -became the victors, and our opponents went flying from the tannery, -some of them making fearful leaps from the second story.” - -After this depreciation of value in the tannery property, Gould’s ready -resources were so exhausted that it is related that he had to borrow -the money to pay his railroad fare to New York. It is probable that -no man in this or any other country has ever been a party to so many -lawsuits as Gould. From the time of the contest over the map business -there was scarcely a day during his whole life that he did not have -some litigation on his hands. This ends the early chapters of Gould’s -life. He now entered upon that career in the metropolis which has made -his name familiar around the globe. - -It is doubtful if many young men, before the age of twenty-four years, -have passed through as many and as varied experiences as these of Jay -Gould. All his training now for several years had been in the line, -first, of competition with others in the same business as his own, and -then in direct conflict and war with those who had been his associates. -He had learned not only to conquer his enemies, but to conquer his -friends. He had thoroughly developed and made apparent to every one who -came in contact with him that spirit that remained with him through -all his life, the mania for the aggrandizement of his own fortune, no -matter whose money must be lost for him to gain it. The last chapter -of his tannery experiences was a dark one, and there is nothing in it -to be held up for admiration by any one, but rather as an example of -the first notable evil in the nature of financial wrecking of the many -that are found in a complete retrospect of his life. Gould himself -always realized the discreditability of his actions in the tannery -matter, as is evidenced by the way in which he tried to smooth it over -before the investigating committee ten years later. As a matter of -fact, he probably realized and recognized whatever else he did that -was evil in his far greater financial operations during the next three -decades, but if he did, he gave no sign nor did he ever indicate that -he had any regrets in his career. - -[Illustration: GOULD’S FIRST GLIMPSE OF HIS FUTURE WIFE.] - - - - -CHAPTER V. - -GOULD’S ROMANTIC MARRIAGE AND HIS FIRST RAILROAD. - - -When Jay Gould reached New York in 1860, after the tannery war, he -was almost impoverished. He settled down at the Everett House, a -comfortable hotel, and there he lived for a little time while waiting -for something to turn up. Gould was not very busy just then and used -to wander around the city, up town and down town, through Wall street -and Lower Broadway, where in later years he became such a power; maybe, -even then, wondering if he would ever reach the point in wealth and -influence that belonged to the men he met, and figuring, as every one -does at times, what he would do if he were a millionaire. He knew the -tannery business thoroughly and had many influential acquaintances in -“The Swamp,” which was the seat then, as it is now, of the leather -trade in New York. But he most wanted to get into the railroad -business. He believed that greater opportunities were there than in any -other occupation for the acquiring of wealth and influence. So he bent -all his energies in that direction. - -One day just before the war, Gould came walking down the street toward -his hotel, and looking up toward the window of the parlor, he saw -seated there, looking toward him, a most charming young lady. He was -not by any means inclined toward flirtation, but he could not avoid an -appearance of interest in her, and he passed on into the hotel. Soon -after that the same episode was repeated. By a little investigation, -Mr. Gould learned that the young lady was Miss Ellen Miller, whose -father, a wealthy New York merchant, was a member of the grocery house -of Philip Dater & Co. She lived in a house across the street, and a -delightful flirtation with the girl whose pretty face appeared at -the window preceded any formal acquaintance. Circumstances, however, -permitted them to meet socially, and they became excellently well -acquainted. After a few weeks, the acquaintance became more and more -intimate and finally ripened into love. Miss Miller’s father indicated -opposition to their marriage, their desire for which they made evident, -and they were compelled to seek some roundabout way to accomplish their -purpose. The result was, that after trying several ways to circumvent -the unsympathetic parent, they decided upon a secret marriage, and this -was actually accomplished. There were no runaway features about the -match, except that to avoid the opposition that they were certain would -come, they simply walked to a minister’s, a short distance from their -home, and were married without letting any one know of it. When they -returned, Mr. Miller indicated no ill-will at their action, and went -to work to make the best of it all. He did this by giving the famous -financier his first introduction into the railroad business. Mr. Miller -owned some shares in the Rutland and Washington railroad. He asked his -son-in-law to look the property over and see if anything could be done -to save the investment. The road was sixty-two miles long, running from -Troy, New York, to Rutland, Vermont. The panic of 1857 had left this -road in a demoralized condition, and Gould found that he could buy a -majority of the first mortgage bonds at ten cents on the dollar. He -had now found the true field for his peculiar talent. He made himself -president, treasurer and general superintendent of the road, studied -the business of railroading on the ground, developed the local traffic, -and finally effected the Rensselaer and Saratoga Consolidation. By this -time, both bonds and stocks were good and he sold the latter for one -hundred and twenty dollars. - -There has been no time when it was possible to estimate the wealth -of Mr. Gould, and as he was secretive in those early days as in his -later, there was no saying what he was worth when in 1860 he came into -Wall street. One statement has it that when the firm of Smith, Gould -& Martin was organized, Mr. Gould’s possessions amounted to thirty -thousand dollars in cash. Another is that when he sold out his holdings -in the Rensselaer and Saratoga Consolidation, he was worth seven -hundred and fifty thousand dollars. - -With a mind peculiarly alert to all the influences which affected the -values of railway securities, with habits of great industry, with -phenomenal tenacity of purpose, with a fair amount at least of capital -to back him, it is not surprising that Mr. Gould profited largely -by his speculation in railway stocks and gold during the war of the -rebellion. The keen-sighted, intelligent men in “the Street” at that -time nearly all made money, and Mr. Gould was at least a millionaire -when the Confederacy fell. What his methods were at the time it is -useless to speculate about. It was before the day when by absolute -mastery of gigantic railway and telegraph systems he could at his will -depress the value of almost any institution on which he fixed his eye -by setting on foot a ruinous war in rates until he had made it to be -his own interest to restore a more normal and healthful condition of -affairs by ceasing his antagonism and building up the property which he -had acquired cheaply during the period of depression. But the details -of his operations were always so subtle as to be shut out from the -discovery of either friend or foe. - -Gould was now fairly on the way toward his colossal fortune. Though -friends warned him against entering into the whirlpool of blasted -hopes and ruined fortunes of Wall street, his inclinations in that -direction were too strong to be resisted. Gould was a born speculator. -It is true that his great fortune was created mainly in hazardous -enterprises outside of Wall street, and that in stock speculations, -pure and simple, he was not always so successful or so infallible -as many have supposed, but by nature and habit Gould was at this -time of his life a commercial gambler, and it was as natural that he -should enter Wall street as for a duck to take to water. It was in -1859 or 1860 that Gould first entered Wall street. It was not very -long before he stepped to the front rank. What a long list of brainy -and courageous men do Gould’s contemporaries in the street make! With -most of them Gould has been at sword’s point, with a few he has been -an ally, with some he has been both ally and enemy. Most of them are -no longer powers in the speculative world. Some of them are dead. Not -a few have been overwhelmed in the swift, resistless torrent of stock -speculation. Three or four yet remain with power in their hands and -millions in their vaults. The Vanderbilts--the commodore, his son -and grandsons--Daniel Drew, James Fisk, Jr., the Beldens, Commodore -Garrison, Henry N. Smith, James R. Keene, William Heath, George I. -Seney, Gen. Thomas, Calvin S. Brice, D. O. Mills, Horace F. Clark, -Alfred Sully, Addison Cammack, C. F. Woerishoffer, the Rockefellers, S. -M. Kneeland, C. J. Osborn, D. P. Morgan, H. S. Ives, C. P. Huntington, -Russell Sage, Cyrus W. Field, John W. Garrett, Robert Garrett, J. P. -Morgan, the Seligmans, Brown Bros., Jay Cooke, Hugh J. Jewett, Lathrop, -Little and Austin Corbin, Henry Clews, Washington E. Connor, Burnham, -Gen. E. F. Winslow, Edward S. Stokes, S. V. White, William Dowd, Solon -Humphreys, William R. Travers, Rufus Hatch, Samuel Sloan--these were -some of the men identified with various Wall street interests with -whom Gould has been allied or at enmity, or both, during his long -career in the street. That he has been able among all these financial -giants to make himself the leader is the highest evidence that can -be given of his genius in speculation and railroad financiering. As -we read some of these names there arise before our eyes the visions -of murder, of suicide, of bankruptcy, of the debtor’s prison, of the -felon’s cell, of ruined fortunes and blasted reputations. Others of -the men have achieved wealth and honorable names. It is interesting -to note that at the time Gould first entered the street one of his -fellow-boarders at the Everett House was James Gordon Bennett, the -elder, with whose son and successor he became engaged in such bitter -business and personal antagonisms. - -Gould not only gambled in Wall street, but he defended the operation. -“People,” he told a State Senate Committee which was investigating into -stock and grain corners, “will deal in chance. Your minister, doctor -and barber all have the same interest in speculation. Would you not, if -you stopped it, promote gambling?” - -Jay Gould was twenty-three years old when he went into Wall street as -a broker. In addition to whatever amount of money he had, he had the -confidence of two or three large capitalists, which is the best capital -of all for beginning a business of speculation. He started on his Wall -street career in a small office and frequently took his stand with the -“curb-stone” brokers. He made money right along. In 1860 he became -intimately acquainted with Henry N. Smith, who was then one of the big -men in Wall street. Soon the firm of Smith, Gould & Martin was formed -and it was prosperous from the start. Gould made a careful study of the -railroad situation and became an expert in the manipulation of railroad -securities in the speculative market. He paid the closest attention to -business, allowing himself few of the social pleasures of which young -men are usually fond. He had no small vices, being a teetotaler. - -During the war of the rebellion, the firm did a large business in -railway securities, and also made a great deal of money speculating in -gold. Gould had private sources of information in the field, and he -was able to turn almost every success or defeat of the Union army to -profitable account. - -At last Gould had found his exact niche, the corner in which the -railroads were put away. That “corner” was ever after the one in which -he found both his labor and his recreation, his fortune bad and good. -He was a natural railroad magnate. Almost always he won, and when he -did not, it was simply because he attempted schemes that would have -seemed to any other man entirely beyond possibility. From this time his -history never loses its intense dramatic interest and never goes back -to the humdrum life that he had abandoned. From this time, there could -be no night in which Jay Gould could sleep in dreamless rest, with no -thought of the morrow. From this time, there could be never a day of -freedom from the intensest strain of business anxiety. He had chosen -speculation for a life work, and its cares must sit upon him. His could -not be the experience of the man in mercantile life, or of the man of -smaller affairs, who finishes his work in the evening and goes to his -home with never a thought of the cares to-morrow will bring. Great -enterprises make great responsibilities. From this time the enormous -weight of the responsibilities upon Jay Gould’s shoulders could never -again lessen. - -Did he ever, in those years of scheming and fighting for wealth, cast -his recollection backward to the old days at Roxbury, when he was but -a barefoot farmer’s boy, with nothing more oppressive on his mind than -the necessity to go through the rain for the cows, or to find the nest -that the blue hen had hidden away some place in the hay-mow? - -There was little in the associations that he made during these first -Wall street years to remind him of those days. For while many of the -men with whom he came in contact had been like himself, the sons of -farmers with the first years of their lives spent far from the city, -yet from this time, all their “watering” of stock was entirely in the -direction of stocks which represented the value of railroads and other -properties, and all their knowledge of farm products was devoted to the -manipulation of grain markets. - -As Gould’s acquaintance grew larger, and his success in ordinary small -ventures became assured, his disposition began to demand something of -greater magnitude, something with more satisfaction in it for that -appetite that was already becoming insatiable. A few small railroad -ventures were carried through in a manner bordering upon perfection, -and this increased the confidence in him of those speculators who -were already his acquaintances. The way opened for him to enter into -the manipulations of Erie, and, as before, when opportunity came he -recognized and grasped it. - - - - -CHAPTER VI. - -GOULD’S ASSAULT UPON ERIE. - - -The most thrilling, the most discreditable portion of Gould’s career, -is contained in the ten years following the close of the war of the -rebellion. The blackest pages in the history of American railways -comprise the chapter relating to the Erie and the most shameful efforts -to wreck the fortunes of a thousand men for the aggrandizement of -the fortunes of a few, were made in connection with the schemes that -resulted in “Black Friday.” - -Nothing in the Credit Mobilier and the history of the rise of the -Pacific railroads equals in downright violation of sacred trusts, -in absolute plunder of vast properties, and in wholesale bribery -and corruption, the record of Erie. Even Mr. Gould, in his sworn -autobiography in that celebrated investigation before the committee on -labor and education, while careful to give minute details about other -periods of his history, significantly preserved an entire silence as -to Erie and “Black Friday”--two incidents in his career which nothing -but an effort to conceal could explain his silence regarding. That -this is no exaggeration of language, an examination of the facts will -show. There is no intention to speak maliciously of Gould. Beside an -open grave, charity and forgetfulness stand guard on either side. But -the lesson of Gould’s career would be lost, if even at this time the -facts were not plainly and openly told. To say that Gould ruthlessly -plundered the Erie railway is to speak the plain truth. - -Fortunately the record of Erie, notwithstanding Mr. Gould’s silence, -can be told from authoritative testimony. In his famous “Chapter of -Erie,” published in the North American Review, in 1869, Charles Francis -Adams gives a thrilling account of Erie from the time Daniel Drew -engaged in his famous war with Commodore Vanderbilt, to the time when -that unfortunate road was in complete control of Jay Gould and James -Fisk, Jr. Mr. Adams’ history stopped short in the middle of the story, -but the record of Erie, from 1869 till Mr. Gould was driven from power -in 1872, is given in the report of the legislative inquiry in 1873, and -of the Hepburn investigation of 1879. - -It is a curious fact that years after writing this “chapter” Mr. Adams, -having become president of the Union Pacific, sat in the same Board of -Directors with Gould, but only for a comparatively brief period, and -Mr. Adams never repudiated or recalled his early history of Gould in -Erie. It is a striking illustration, however, of the power of millions -that Gould should live to sit in the same board with the representative -of the aristocratic Adams family, which furnished two Presidents to the -United States; that after an effort to involve the administration of -President Grant in the disgrace of Black Friday, he should, in after -years, be joined with him in business enterprises; that after having -been publicly branded as an unscrupulous gambler in a Congressional -report written by James A. Garfield, he should be sought for to render -aid to secure Garfield’s election as president, and that, though not -seeking to join the social circles in which the Astors are leaders, -he was able to induce John Jacob Astor to sit with him in the Western -Union Board of Directors. - -Twenty years ago, after Mr. Adams wrote his “Chapter of Erie,” he -was himself president of the Union Pacific, and it must have given -Mr. Gould the keenest satisfaction to have been the occasion of -his retirement from that position. The railway was in a bad way -financially--had a big floating debt--and Mr. Gould and his friends -stepped in, gained control of the property the second time, retired -Mr. Adams from the presidency and secured an adjustment of the -floating debt. It was suggested to Mr. Gould at this time that he -might write a “Chapter of Union Pacific” covering the history of the -Adams administration. But whatever there may have been lacking in -administrative vigor in Mr. Adams’ presidency, he retired without any -blot on the family escutcheon. - -When Gould entered Wall street Erie was one of the most active stocks -on the list of the Stock Exchange. It was natural that he should -drift into its speculation, and his connection with the Cleveland -and Pittsburg led him naturally into Erie. His old acquaintances -were surprised to hear one day that he had become a director and a -controlling spirit of this great road. This was in 1867. - -But now let us quote a little plain language from Charles Francis Adams -in order to get into the atmosphere of Erie at this time: - -“Yet freebooters are not extinct,” he wrote. “They have only -transferred their operations to the land, and have conducted them in -more or less accordance with the forms of law, until at last so great a -proficiency have they attained that the commerce of the world is more -equally but far more heavily taxed in their behalf than would ever have -entered into their wildest hopes, while outside the law they simply -make all comers stand and deliver. * * * Gambling is a business now, -where formerly it was a disreputable excitement. Cheating at cards -was always disgraceful. Transactions of a similar character under the -euphemistic names of ‘operating,’ ‘cornering’ and the like are not so -regarded. * * * No better illustration of the fantastic disguises which -the worst and most familiar evils of history assume as they meet us in -the actual movement of our own day could be afforded than was seen in -the events attending what are known as the Erie wars of the year 1868.” - -In these wars Gould was an active spirit; and if Mr. Adams had written -in 1873 instead of 1869 he would have made his language still stronger. - -Before his entrance into Erie Gould had become acquainted with James -Fisk, Jr., and the former, with that unerring judgment of men which -was always one of the elements of his success, soon perceived in Fisk -the qualities which supplied his own deficiencies. Fisk was the son -of a Vermont peddler and followed the calling himself for some time, -and in it learned the great art of driving a hard and shrewd bargain. -Wholly uneducated, his natural ability in the line of making money -was very great. Gould was timid and shrank from publicity. Fisk was -bold and loved notoriety. Gould had many refinements of mind and was -of a domestic nature. Fisk was coarse, sensual and fond of display. -He became the colonel of a militia regiment, and with great delight -used to put on his uniform and ride in front of his command. He used -to create a sensation by riding in a carriage with six horses in -questionable female company. He considered it one of the choisest -prerogatives of his position of vice-president and comptroller of Erie -to direct the theater that adjoined the railway offices in the Grand -Opera House. While Gould did not have the inclination or courage to do -these things he did not hesitate to use Fisk in every available way -and to hide his own personality behind that of his partner. In those -days Fisk seemed to play the more prominent part, and Gould, in public -estimation, was a secondary character. When anything was done it was -Fisk that bore the brunt of popular criticism and indignation. Yet the -facts as they are now known show that Gould’s was the master mind; Fisk -was simply his right arm. “With Gould to plan and Fisk to act,” said -Gen. Francis Barlow, in 1872, “they were a strong team.” - -At the time Gould and Fisk entered into Erie, Daniel Drew was the -master of that great trunk line. Drew was one of the most extraordinary -characters in Wall street history. Both pious and unscrupulous, he -founded a theological seminary and wrecked a railroad with equal -fervor. He was a director and treasurer of Erie, and used these -positions simply for speculative purposes. He was known in his day as -“the great speculative director.” His biggest piece of “financiering” -was to get himself apparently cornered in Erie stock, and then to -appear in the street with a block of stock which had been converted -from bonds issued with an obscure provision entitling the holders -to convert them into stock. Gould later on repeated this trick with -success, both in Erie and Jersey Central. - -Soon after Gould and Fisk entered Erie, Drew became engaged in his -celebrated contest with Commodore Vanderbilt, and in this contest he -had their able assistance. The first and great Vanderbilt was cast in a -larger mould than Drew. The latter was simply a speculator. Vanderbilt -was a creator of property. He was the first of the line of railroad -kings. Laying the foundations of his great wealth in the steamboat and -steamship business, he soon drifted into railroad operations, clearly -seeing that in the development in the great inland commerce of America -there were larger and quicker profits to be obtained than in the export -trade. - -Vanderbilt had obtained control of the Harlem and Hudson River roads; -he now aimed at the ownership of Erie. Space will not permit the -telling of the story of this famous contest. It can be found in detail -in Mr. Adams’ interesting chapter. It is a story of extraordinary -stock operations, of millions lost and won; of securities issued by -the bushel and with little or no regard for law or equity; of large -and intricate litigation; of judges bought, legislators bribed, of -directors defying injunctions and fleeing to another state to escape -arrest. Vanderbilt, having been defeated in other efforts to get his -fingers on the Erie road, resolved, if possible, to buy a controlling -interest, and his brokers were set at work on this difficult job. -Drew resolved to let Vanderbilt have as much stock as he wanted, but -entered into a bargain with Gould and Fisk by which the railroad king -should be defeated by issuing and marketing an unlimited number of new -securities. So Drew sold and Vanderbilt bought. The latter, having in -remembrance Drew’s famous convertible stock trick, resorted to the -courts to prevent him from issuing any more stock. Injunctions were -issued enjoining Drew and all the directors of the road from issuing -any stock. Counter-injunctions were obtained by the Drew-Gould party. -One judge would issue an order commanding certain things to be done -which another judge simultaneously commanded should not be done. Judges -in New York, Brooklyn, Albany and Binghamton issued contradictory -injunctions. Such a legal pandemonium has never been seen before or -since. The courts ran riot and law became another name for plunder. In -this scene--the blackest in the history of American jurisprudence--the -notorious Judge Barnard loomed up conspicuously, and a little later -Judge Cardoza, shrewd, learned, crafty and venal--the modern Lord -Bacon--appeared on the scene. At first Barnard was Vanderbilt’s judge. -Later, when Vanderbilt had no further use for him, he became Gould’s -judge. His other master was Tweed. - -In the meantime, regardless of injunctions, Drew and his aides calmly -proceeded to carry out their carefully matured plans to issue new -stock. It was agreed that fifty thousand shares of new stock should -be delivered to the Wall street firms of which Gould and Fisk were -members. Without going into the details of the intrigue, it is -sufficient to say that it was, at least for the time being, successful. -When the fifty thousand shares were thrown on the market the price of -Erie fell from eighty-three to seventy-one. Vanderbilt found that he -had bought at high figures a lot of Erie stock, but that he was no -nearer control than ever. Drew raked in about seven million dollars -of Vanderbilt’s money, and Gould and Fisk shared in the profits. Then -orders were issued to arrest the Drew directors for contempt of court. -Receiving intelligence of this, they hastily packed up their papers -and securities, and thrusting them into their pockets and valises, -they beat a hasty retreat to Jersey City. Over six million dollars in -securities were carried in one coach. Among this precious company, -of course, were Gould and Fisk. In Jersey they were safe from the -operation of New York law. They calmly proceeded to have the Erie -incorporated as a New Jersey institution, at the same time laboring to -get the New York legislature to pass a bill to legalize the issue of -fifty thousand shares of stock, a transaction which some one at that -time likened to an attempt “to legalize counterfeit money.” It was -not conscientious scruples which caused the legislature to hesitate -to pass this bill; it was simply a question of cash. Vanderbilt was -still in the fight to protect his interests, and it was a question of -who had the biggest purse. Meanwhile, Peter B. Sweeny--the brains of -the Tweed ring--had been made, temporarily, receiver of the road, and -though he never actually did anything in that position, Judge Barnard -ordered that he be paid one hundred and fifty thousand dollars for his -services. Poor Erie had to foot the bill. - -The Erie people needed a first-class representative at Albany to -watch their interests before the legislature. Gould was selected as -the fittest man to act in the capacity of a lobbyist. First giving -out that he was going to Ohio, Gould quietly slipped up to Albany, -with five hundred thousand dollars of Erie cash in his pocket. Here -in a day or two he was arrested, but released on five hundred dollars -bail to appear in a New York court on Saturday. He appeared on that -day, but his attorneys secured a postponement, and he was allowed to -return to Albany in charge of an undersheriff. Arriving in Albany Mr. -Gould was conveniently taken sick, and unable to return to New York -to attend the court proceedings, though he drove to the capitol in a -snowstorm. The officer reported him to the court as a “runaway,” but -the matter was afterward settled, and, in the language of Mr. Adams, -he “assiduously cultivated a thorough understanding between himself -and the legislature.” In this he was materially aided by the cash with -which his pockets were so liberally filled. Corruption ran high. One -senator was recorded to have accepted seventy-five thousand dollars -from one side and one hundred thousand dollars from the other. One man -was paid five thousand dollars by Gould “just,” as Mr. Gould remarked, -“to smooth him over.” The corruption at this session was investigated -by a legislative committee in 1869. Gould was a witness, but he -endeavored to conceal the facts as much as possible. In the famous Erie -investigation of 1873, however, Mr. Gould testified as follows: - -“I was first elected President of the Erie railroad in 1868, and I was -President in 1869, 1870 and 1871. I do not remember whether I approved -payment to William M. Tweed of money for legal services while he was -Senator. I do not know whether he is a lawyer. He was a director -of Erie and a member of its executive committee. I would not have -allowed pecuniary transactions with Mr. Tweed to be put in the shape -of legal services if my attention had been called to them. The name of -William M. Tweed is in my handwriting. The words in my handwriting -are: ‘William M. Tweed, legal disbursements as per order, J. G., -$35,000, April 25, 1871.’ The approval of voucher, April 5, 1869. He -was Senator in 1869, also in 1871 and 1872. The ‘legal account, was -of an india-rubber character. I gave large amounts in 1869, 1870, -1871 and 1872 in the senatorial and assembly districts. It was what -they said would be necessary to carry the day in addition to the -amount forwarded by the committee, and contributed more or less to all -the districts along the line of the road. We had to look after four -states--New York, New Jersey, Pennsylvania and Ohio. It was the custom -when men received nominations to come to me for contributions, and I -made them and considered them good paying investments for the company. -In a republican district I was a strong republican; in a democratic -district I was a democrat, and in a doubtful district I was doubtful. -In politics I was an Erie railroad man all the time. We had friends on -both sides--friends in a business way. The amounts contributed for the -elections were large, but I could not give any definite estimate. No -names occur to me at the moment. I am a poor hand to remember names. I -had relations in several states. I did not keep separate what I paid -out in New Jersey from what I paid out in New York. We had the same -ground to go over there, and there has been so much of it--it has been -so extensive--that I have no details now to refresh my mind. You might -as well go back and ask me how many cars of freight were moved on a -particular day.” - -This confession so charmingly frank relates to payments before -elections, but there is every reason to believe that the payments were -continued after election. - -The state of things unearthed by this investigation was officially -described in the report of the legislative committee as follows: - -“It is further in evidence that it has been the custom of the managers -of the Erie railway, from year to year in the past, to spend large sums -to control elections and to influence legislation. In the year 1868 -more than one million ($1,000,000) was disbursed from the treasury for -‘extra and legal services.’ - -“Mr. Gould; when last on the stand, and examined in relation to -various vouchers shown him, admitted the payment during the three -years prior to 1872 of large sums to Barber, Tweed and others, and -to influence legislation or elections; these amounts were charged -in the ‘India-rubber account.’ The memory of this witness was very -defective as to details, and he could only remember large transactions, -but could distinctly recall that he had been in the habit of sending -money into the numerous districts all over the state, either to -control nominations or elections for Senators and members of Assembly. -Considered that, as a rule, such investments paid better than to -wait till the men got to Albany, and added the significant remark, -when asked a question, that it would be as impossible to specify -the numerous instances as it would to recall to mind the numerous -freight-cars sent over the Erie road from day to day.” - -The report of the committee concludes as follows: - -“It is not reasonable to suppose that the Erie railway has been alone -in the corrupt use of money for the purposes named; but the sudden -revolution in the direction of this company has laid bare a chapter -in the secret history of railroad management such as has not been -permitted before. It exposes the reckless and prodigal use of money, -wrung from the people, to purchase the election of the people’s -representatives and to bribe them when in office. According to Mr. -Gould, his operations extended into four different states. It was his -custom to contribute money to influence both nominations and elections.” - -Mr. Adams did not have this report before him when he wrote his -“chapter.” His record closes in 1868, soon after Mr. Gould had been -elected president of the road. This had been brought about in the -following manner: While Gould was engaged in “fixing” the legislature, -and the courts were filled with Erie suits, the various parties in -interest got together and effected a compromise. Vanderbilt got rid -of the useless stock he had bought at high figures. Drew pocketed his -profits and returned from exile in Jersey. The Boston, Hartford and -Erie crowd which had figured in these transactions, having got all -they could out of Erie for the benefit of their own bankrupt road, -withdrew. All litigation was stopped and injunctions revoked. Bills -were rushed through the legislature favorable to both Vanderbilt and -Erie. Drew resigned from the road; Vanderbilt relinquished his ambition -for control, and the property was turned over to Gould and Fisk. Drew -may have thought that by this time the poor old road was a squeezed -lemon, but if so he was mistaken, for Gould and Sage found that the -property had not yet been worked for all that was in it. What their -administration cost the road is very plainly set forth in the testimony -given before the Hepburn Committee of 1879, by J. W. Guppy, assistant -general superintendent under Gould, and for many years connected with -the road into whose service he first entered as a telegraph operator. -When Gould was ousted from the control in March, 1872, the total stock -was $86,536,910, the funded debt $26,395,000 and the floating debt -$2,517,301, a total of $115,449,211, an increase during the time of -Gould’s identification with the road of $64,383,268. Yet Mr. Guppy -testified that not a dollar of this vast sum was represented by any -additions to the road. - -At the time that the Gould-Fisk ring was sucking the life-blood of -Erie, the Tweed-Sweeny ring was plundering the city of New York. The -two were really one. From Mr. Gould’s testimony just quoted and from -other facts here presented, it will be seen how closely allied they -were. Tweed was one of the executive committee of the Erie and was -paid large sums for so-called “legal” services. This was a great day -for the spoilsmen. It was a long feast of corruption. Dishonesty walked -openly in the streets, bribery influenced elections and controlled -legislatures, and plundering was a fine art. Great as was Tweed at this -time, his prosperity was soon to end in flight, capture, imprisonment, -disgrace and death, but Gould survived the exposure and lived to enjoy -his wealth and power. - - - - -CHAPTER VII. - -GOULD’S VICTORY AND FINAL DEFEAT IN ERIE. - - -During these years of Erie conflicts, Gould not only fought his enemies -most bitterly, but hardly appreciated the usual feelings of men to be -true to their friends. Gould and Fisk now had practical control of -Erie. They saw the October election coming, and they were nervous. -But the crops were good and Erie’s traffic brought in good returns. -Englishmen had become strangely fascinated with the stock, and had -bought over 100,000 shares. On August 19th the stock had dropped to -44, and then to the astonishment of Wall street, the transfer books -were closed, preparatory to the annual election on October 13th. The -election went off well for Mr. Gould and his friends. Peter B. Sweeny -and William M. Tweed were among the new directors. Then, it is said Mr. -Gould began a system of locking up money. This culminated on October -27th, when members of the New York Stock Exchange waited on Mr. Gould, -who had obtained large loans on Erie. Mr. Gould told the committee -that $10,000,000 of convertible bonds had been issued, half of which -had been converted into stock and the rest would be. This was a new -issue. The money, he said, had been used to purchase the $5,000,000 of -Boston, Hartford and Erie. The committee was not satisfied. It wanted -to know if more stock would be issued. Gould replied: “In certain -contingencies,” meaning for his loans. The Secretary of the Exchange -afterward said that the stock of the corporation had been increased -from $34,265,300 on July 1, 1868, to $57,766,300 on October 24th, or by -235,000 shares within four months. These new issues forced Erie to 35. -There was over $12,000,000 in greenbacks locked up and all values were -depressed. The situation was so serious that Secretary McCulloch of the -treasury, a contractionist, was compelled to announce that if necessary -$50,000,000 additional currency would be forthcoming for the relief of -the community. - -Their next achievement, after securing entire possession, was to corner -their old associate Daniel Drew. The latter, after a short retirement -from the street, returned to speculation and naturally drifted into -Erie, but this time from the outside. He was caught just as many times -he had caught others. And Gould repeated, only in a more aggravated -way, his trick of issuing new stock and flooding Wall street with it. -This new stock was issued by Gould and Fisk without even going through -the form of consultation with the other directors. Mr. Adams calls this -“the most extraordinary feat of financial legerdemain which history -has yet recorded.” Drew found that even he, old and experienced in all -the tricks of his trade, was no match for Gould. He appealed to the -courts for relief, but Mr. Gould fought him in the same way. Realizing -that he had no other avenue of escape, Drew actually called on Gould -and Fisk one night and appealed piteously to be permitted to get out -without loss, though his companions in loss might be squeezed to -Gould’s heart’s content. Gould and Fisk bowed their aged associate out -without satisfaction and smiled as they closed the door on the old man. - -That was on a Sunday. Next day, in the name of August Belmont, Justice -Sutherland was asked to enjoin the issue of any more new Erie stock and -to appoint a receiver. Drew signed the affidavits, but, to his chagrin, -Gould was ahead of him by two hours. On the petition of one McIntosh, -a man in Gould’s employ, Justice Barnard restrained all suits and -appointed Gould the receiver of the railroad. Erie stock fell only to -48. - -Justice Barnard allowed Mr. Gould to buy and cancel 200,000 shares of -Erie. This was intended to crush Daniel Drew, who had to have 70,000 -shares to deliver in a few days. Gould’s purchases rushed the stock to -62, and then it turned out that thousands of shopkeepers and barbers, -tailors, and all sorts of people, had a share or ten shares of Erie -and wanted to realize on them. Gould could not meet the rush of shares -these people had to sell. He and Fisk fought like tigers, but they -could not stand the drain, and Drew settled his contracts at 57, losing -$1,500,000. Then Erie fell to 42. The Open Board of Brokers refused to -deal in Erie unless the stock was registered at a reputable banker’s. -Erie was knocked off the list and Gould organized a new Board of his -own, where trading in Erie went on as before. - -Gould at this time actually posed as an anti-monopolist before -the public. All his extraordinary acts as president of the Erie -were defended on the ground that he was endeavoring to protect the -system against consolidation or affiliation with other trunk lines, -and there were some honorable persons who really put faith in this -statement. “Gould,” said Mr. Adams, “posed as a public benefactor, with -unspeakable effrontery.” - -There was more fighting in the courts over Erie. Justice Sutherland -vacated Barnard’s order making Gould receiver, and Noah Davis was made -receiver. Barnard stayed Sutherland, and Sutherland granted a motion -to show cause why Barnard’s stay should not be vacated. Gould and Fisk -sued August Belmont for $1,000,000 damages, and Frank Work and Richard -Schell for $429,250, paid to them at the time of the settlement with -Vanderbilt. Gould and Fisk even went to the United States District -Court, and on a petition of one of Gould’s clerks, Henry D. Whelpley, -a stockholder, Judge Blatchford appointed Gould receiver, and directed -the Erie company to place $8,000,000 in his hands to protect the rights -of the plaintiff, Whelpley, who protested that he had been injured by -certain issues of stock. - -The marvelous business acumen displayed by the manipulators of these -properties was aided by the blind zeal of certain foreign investors -for American securities then as prevalent as now. The wonderful -financial operations of the Drew and Gould regimes in Erie could not -have been possible but for the extraordinary fascination which the -stock possessed for English capitalists. While Americans looked with -more than suspicion on the Erie securities, England was possessed of -an irresistible craze to get as many of them as possible. English -capitalists would not take the United States bond even when selling -below par, but they bought with avidity every share of Erie they could -get hold of. At last, however, the eyes of the English stockholders -were opened to the true condition of affairs, and under the lead of -James McHenry they organized to get the control of the property. At -this time Gen. Daniel E. Sickles, one of the heroes of Gettysburg, was -Minister to Spain. He was engaged to lead the anti-Gould forces against -the Erie strongholds. He did his work well, and it is said was paid a -very big fee for his labors. He obtained a leave of absence from Madrid -and returned home to conduct the operations in person on the ground. -This was the last of the Erie wars. - -It should be recorded at this time, however, that the famous -partnership of Gould and Fisk had been dissolved by death. Fisk, late -in 1871, had been shot by Edward F. Stokes, and after a few days had -died from the wound. He and Stokes had at one time been friends but had -quarreled over business matters and about a woman--the beautiful, but -notorious Josie Mansfield--and the quarrel led to the murder. It will -surprise no one who has read this history thus far that in the course -of the Erie litigations a Supreme Court judge once held court and -issued orders from Josie Mansfield’s apartments. Stokes was tried three -times. Once the jury disagreed. Once he was convicted of murder in -the first degree and sentenced to be hanged by Judge Noah Davis. This -verdict being overruled by the Court of Appeals, he was tried again -and convicted of manslaughter in the third degree. After serving a few -years in Auburn prison Mr. Stokes returned to New York, where he soon -became a prosperous business man, intimate for a long time with John A. -Mackay, the California millionaire, and president of a telegraph system -competing with Gould’s Western Union. - -Before his death the belief is that Gould and Fisk had substantially -parted company. The New York _World_ of that day gives an account of -an interview between Gould and Fisk, in which the former asked Fisk -for his resignation as vice-president and comptroller of Erie. Fisk is -represented as saying to a friend who was about to leave for Europe: -“I would like you to do me a favor. If you find in Europe a mean man -who can do a meaner thing to his best friend or tell a bigger lie than -Jay Gould, I want you to telegraph me at once.” After Fisk’s death, -however, Gould acted handsomely by his widow. Whatever else may be said -of Fisk, he was certainly a more popular man than Gould, and after the -former’s death Gould did not long remain at the head of Erie. “The -feeling against Gould,” said Gen. Barlow, at the time of the anti-Gould -revolution, “grew in great part since Fisk’s death. Fisk was always -popular with the people of the road and in the office. Had he been -alive we should have had more trouble, or perhaps the move would never -have been made.” - -Besides Barlow, Gen. Sickles had other efficient aid, and the -anti-Gould movement was strengthened by such names as Gen. John A. Dix, -who in the same year was elected governor of New York, Gen. George B. -McClellan and William R. Travers. - -In March, 1872, the blow was struck. A man named Archer had been -elected vice-president in place of Fisk, and with his aid the -revolution was accomplished. Gould had made him vice-president with -the view of conciliating the opposition. Nine members of the Board of -Directors had been won over to the opposition. These wrote to Gould, -asking him to call a meeting of the board. As Gould did not respond, -Vice-President Archer called the meeting. The revolutionists assembled -at Barlow’s house and prepared to carry the Grand Opera House by storm. -Gould had this barricaded by his men, with instructions to permit no -one to pass in. But the revolutionists succeeded in passing the picket -line and passed in, and Mr. Archer called the meeting to order. Then -ensued an extraordinary scene which lasted all night. Gould ordered the -“conspirators,” as he called them, to leave the building. They refused. -Gould at this time had the benefit of the legal advice of David Dudley -Field and Thomas G. Shearman. Mr. Field was long one of the leaders of -the New York bar. One of his brothers sat on the Supreme Court bench -of the United States, and the other, Cyrus W. Field, was the father of -the Atlantic cable, and soon one of the closest of Gould’s business -associates. Mr. Shearman, who afterward became famous in the defense -of Henry Ward Beecher, had before this time published an article on -the corruption of the New York judiciary, which attracted widespread -attention, but he was now counsel to a man who owned two or three -Supreme Court judges and a few months later publicly admitted the -distribution of a corruption fund. - -Space will not permit the telling of all the incidents of that night. -Shearman appeared with forty policemen and ordered the revolutionists -to leave, but they shut themselves up in their rooms and refused to -do so. Gould obtained from Judge Ingraham a temporary injunction to -restrain Archer and the other directors from acting, but they calmly -proceeded to elect new officers and directors. Field and Shearman -declared that Gould’s legal position was absolutely perfect, but -notwithstanding this he was finally obliged to give in. The opposition -elected Gen Dix as president and Gen. McClellan as one of the directors. - -The _World_ of March 11, 1872, thus describes this memorable night: - -“The scene at the Grand Opera House was one to be remembered. Gould -and Eldridge, with their counsel, in one room and the newly chosen -directors in another, the doors of both rooms barred, opening to no one -but an avowed friend, each fearful of orders of arrests being served on -them, every spare room in the offices filled with blue-coated officers -of the peace, sitting in all the chairs and on all the tables and lying -on the floors, and an intense sense of subdued excitement pervading the -heavy air of the place. - -The only communication between the two hostile parties was by means of -Peter B. Sweeney, who acted as go-between. - -Finding that he was defeated, Gould then resorted to one of those -acts of audacity with which at different periods in his career he -has surprised the public. In a public letter he offered to leave all -the questions in dispute to arbitration by Horace Greeley. Thus he -attempted to place himself in favorable light before the public. But -it should not be supposed that Greeley was in any sense a friend of -Gould. On the contrary, the _Tribune_ of that day shows how severely he -criticised Gould. - -The battle lasted one night and then Gould surrendered. He remained -as a director for a time, but his power was gone and Erie passed out -of his hands forever. The property has never fully recovered from the -condition into which it was thrown by the Drew-Gould regime. Though one -of the most important systems in the country and enjoying an immense -business, it is crippled with its enormous stock and bond liabilities, -and not until 1891 did it pay a dividend. For many years it remained -in the hands of a receiver. - -The testimony of J. W. Guppy before the Hepburn Committee, already -referred to, gives some interesting details of Gould’s management of -the Erie. Among the roads which Erie leased were the Chemung railroad -and the Canandaigua and Elmira. These leases were very profitable -to Erie, but Gould, as an individual, after quietly purchasing a -majority of their capital stocks, as president of Erie refused to pay -the rentals, thus abrogating the leases. Then he sold the roads to -the Northern Central of Pennsylvania at a big profit. Gould and Fisk -organized a number of auxiliary companies whose plant was usually paid -for by Erie, but whose stock went into the pockets of Gould, Fisk and -their associates. Among these companies was the National Stock Yard -Company. The land was purchased and the improvements made by Erie, -but the stock was divided as so much spoils, 800 shares finding their -way into the pockets of Judge Barnard. The Erie Emigrant Company, the -Jefferson Railroad Company, the Blackford Company and the Greenwood -Coal Company were the names of some of the companies practically -saddled upon Erie, but whose stock was issued to Gould and Fisk without -consideration. - -August Stein, who made an examination into the records, told the -Hepburn Committee that the amount of Gould’s wrong-doing in Erie was -about $12,000,000. By this was meant the amount which he wrongfully -appropriated. - -Mr. Gould’s smartness was never made more apparent than in his manner -of pretending to restore the money which he had misappropriated. He had -to make restitution of this stolen money--“stolen” is the word used -by the Hepburn Committee. After he had left Erie, the new management -sought to ascertain how large was the plunder carried away by Gould. -This information could be obtained with complete accuracy only from -Morosini, the auditor of the company, and he refused to make up the -accounts, leaving Erie to join his fortunes with those of Gould. -Morosini now became inseparable from Gould and a notable figure in -Wall street. He was a tall, athletic Italian, shrewd and faithful, an -ideal private secretary. He had served with Garibaldi in the wars for -Italian liberty, and was proud of his service under the great Italian -patriot. He had been a sailor, too, and had a wide experience with -the world, which, while not making him overscrupulous in his methods, -made him invaluable to a man like Gould. When the firm of W. E. Connor -& Co., of which Gould was a special partner, was founded, Morosini -became partner, and when the firm dissolved, and Morosini retired from -business, Gould said that his private secretary was worth $2,000,000 or -$3,000,000. - -A way was opened, however, by which the new Erie management gained some -proof of Gould’s wrong-doing. Gould, in company with Horace F. Clark, -had engineered a corner in Northwestern stock, one of the most famous -and successful corners in Wall street history. In after years, Gould -gave a unique account of this corner to a legislative committee which -was investigating corners. “I was interested,” said Mr. Gould, with -that charming frankness which he sometimes assumed, “in the Chicago -& Northwestern corner. The stock was selling at seventy to eighty. I -considered it very cheap,” so he bought. He soon had bought a great -deal more than there really was to deliver, and the shorts were -cornered. The price went up to $250. “I was induced,” said Mr. Gould, -with most exquisite humor, “to part with some at that price.” - -Among the shorts caught in this famous corner was Henry N. Smith, who -only a short time before had been Gould’s partner in the firm of Smith, -Gould & Martin, and who had supported Gould in his great conspiracy -to corner gold. Smith is another noted Wall street character, whose -life is linked in that of Gould. He was something of an “exquisite,” -and had the reputation of wearing corsets, but he was for many years -remarkably successful in Wall street. After renewing his relations with -Gould he became chiefly distinguished as one of the bear leaders, and -was thus continually in antagonism with Gould. Woerlshoffer, Cammack -and Smith were a trio that once nearly drove Gould to the wall, but -the latter lived to see one dead, the second his associate in certain -speculations, and the third involved in irretrievable bankruptcy. - -It was not in the Northwest corner that Smith was ruined, but in it he -lost a very large sum, which found its way into Gould’s pockets. Smith -was not slow in getting his revenge. The books of the late firm of -Smith, Gould & Martin were in his possession, and he handed them over -to Mr. Barlow, of the Erie, who quickly discovered in them the evidence -on which to obtain an order of arrest for Gould and to establish a -suit for the recovery of $12,803,059, the proceeds of bonds converted -into stock to the extent of 407,347 shares, which were sold by Mr. -Gould’s firm and the proceeds transferred to his pocket. That was the -charge, and Gould was arrested and placed under very heavy bonds, which -he furnished. Here Mr. Gould’s genius displayed itself. He actually -entered into a big speculation based on his restitution of this -plunder. Gen. Dix, it should be recorded, remained as president of Erie -for only a few months, and was succeeded by President Watson, a man who -owed his position mainly to Horace F. Clark, who, as has been seen, was -in intimate business relations with Gould. Clark undertook to arrange a -compromise between Watson and Gould, and all three evidently united to -“rig” the stock market by the operation. One day it was reported that -Gould intended to restore his plunder, and the price of Erie advanced -with a bound. A day or two later a denial of the report would come, -and down would go the price. This was repeated two or three times and -Gould, of course, bought at the low figures and sold at the top, and -the profits must have been big. Finally the restitution, so-called, was -announced with a flourish of trumpets. On the face of the agreement -Gould made over to Erie an immense amount of property and all suits -were withdrawn and Gould released from all criminal responsibility. A -clause in the agreement said that in making this transfer of property -Gould expressly stipulated that it should not be considered as an -admission of wrong-doing. The Opera House and adjoining buildings and -other real estate, with the exception of Gould’s Fifth avenue mansion, -were made over to the Erie, and, in addition, a mass of stocks of -the par value of about $6,000,000. As a matter of fact most of these -stocks were worthless. J. G. Guppy told the Hepburn Committee that he -would not give $200,000 for the entire lot. Among the securities were -$1,000,000 of United States Express stock to be issued, and which Gould -guaranteed to be issued, but which, as a matter of fact, never was. -When Hugh J. Jewett became receiver of Erie he discovered the utter -sham of this alleged restitution. He told the Hepburn Committee: “Mr. -Watson had made a settlement with Mr. Gould, in which he received in -liquidation of this account, or such portion of it as he supposed he -could recover, certain assets. When I came here I sought to realize on -these assets. I found many of them totally worthless, and some which -were of value were encumbered by existing liens.” - -By the closing of these transactions Mr. Gould was entirely freed -from all connection with Erie and was enabled to seek new fields for -cultivation. It had been a few years before, during the Erie troubles, -that Gould and his coadjutors originated the scheme for cornering gold, -which consummated on the day which is now remembered as “Black Friday,” -the other most disgraceful of the conspiracies of his life. - - - - -CHAPTER VIII. - -THE GOLD CONSPIRACY. - - -“Black Friday,” that darkest day in the financial history of America, -was not the creation of sudden circumstance, but the culmination of -a plan conceived by Gould and his associates, with all its details -arranged for weeks before. Whether the whole truth has ever been -written about Mr. Gould’s gold operations is open to doubt. The -explanation given by Henry Clews, in his noted work, “Twenty-eight -years in Wall Street,” seems a trifle naive to those who are not so -deeply initiated in Wall street methods. He says: - -“In the year 1869, this country was blest with abundant crops far in -excess of our needs, and it was apparent that great good would result -from any method that could be devised to stimulate exports of a part, -at least, of the surplus. - -“Letters poured into Washington by the thousand from leading bankers, -merchants and business men, urging that the Treasury department abstain -from selling gold, as had been the practice for some time, so that the -premium might, as it otherwise would not, advance to a figure that -would send our products out of the country, as the cheapest exportable -material in place of coin, which, at its then artificially depressed -price, was the cheapest of our products, and at the same time the only -one undesirable to part with. So the government decided to suspend gold -sales indefinitely. - -“Jay Gould and others, being satisfied that this was to be the policy -of the administration, commenced at once buying large amounts of gold, -actuated, doubtless, by the purest of patriotic motives, namely, to -stimulate cotton and cereal exports. They succeeded in accumulating a -considerable amount of gold at prices ranging from 135 to 140, covering -a period of three months’ steady buying. - -“This was the honest foundation on which the great ‘Black Friday’ -speculative deal was erected. - -“The eruption on ‘Black Friday’ was really caused by the erratic -conduct of James Fisk, Jr., who actively joined the movement on -Thursday, the day before, and became wild with enthusiasm on the -subject of high gold.” - -[Illustration: The Men of Black Friday. - -1.--JAY GOULD. 2.--JIM FISK, JR. 3.--DANIEL DREW. 4.--COMMODORE -VANDERBILT. 5.--PETER B. SWEENY. 6.--E. R. STOKES.] - -The “Black Friday” scheme was the most gigantic one that Wall street -had ever seen. This gold conspiracy was investigated in 1870 by a -committee of Congress, of which James A. Garfield, afterward President, -was chairman, and S. S. Cox, a member. The investigation undertaken -went far enough to show how zealously the conspirators labored to -get Grant within their toils and implicated persons near to him. -Unfortunately, too, the President had innocently enough permitted -himself to be put in a suspicious position, and it was long before he -was completely purged of the scandal. - -The report of the committee, with the accompanying testimony, is -absorbingly interesting: - -“Gould, the guilty plotter of all these criminal proceedings,” is the -language of James A. Garfield, the author of this report. - -Gould some years before had formed a co-partnership with H. N. Smith -and others under the name of Smith, Gould, Martin & Co. “He was a -broker,” says Henry Adams in his history of the gold conspiracy, “and a -broker is almost by nature a gambler, perhaps the very last profession -suitable for a railway manager. In character he was strongly marked -by his disposition for silent intrigue. He preferred, as a rule, to -operate on his own account without admitting other persons into his -confidence, and he seemed never to be satisfied except when deceiving -everyone as to his intentions. There was a reminiscence of the spider -in his nature. He spun huge webs in corners and in the dark, which -were seldom strong enough to resist a serious strain at the critical -moment. His disposition to this subtlety and elaboration of intrigue -was irresistible. It is scarcely necessary to say that he had not a -conception of a moral principle. In speaking of this class of men, it -must be fairly assumed at the outset that they do not, and can not, -understand how there can be a distinction between right and wrong in -matters of speculation, so long as the daily settlements are punctually -effected. In this respect, Mr. Gould was probably as honest as the mass -of his fellows, according to the moral standard of the street; but -without entering upon technical questions of roguery, it is enough to -say that he was an uncommonly fine and unscrupulous intriguer, skilled -in all the processes of stock gambling, and indifferent to the praise -or censure of society.” - -It was one of Mr. Gould’s peculiarities that he rarely entered into any -large speculation without furnishing the public with a plausible reason -for assisting him in his operations. This was certainly the case in -the gold conspiracy. The plausible reason was in this case suggested -to Mr. Gould by James McHenry, who was then training with Mr. Gould in -Erie. The latter spared no pains to dress the reason up in the best -shape and give it to the public. Mr. Gould argued with much apparent -force, but actual sophistry, that an advance in the price of gold would -benefit the Western farmers in giving them a bigger price for their -grain, and Mr. Gould backed up this theory with many facts and figures. -Gen. Grant had just become President. His Secretary of the Treasury was -George F. Boutwell. The key to the situation was the financial policy -of the government. No successful corner in gold could be established -if the Treasury should sell gold with a liberal hand. It should be -explained that the war had caused a lively speculation in gold, which -continued after the war until the resumption of specie payments made -the greenbacks equal in value to gold. Speculation in gold was carried -on in the gold-room, an institution separate from the Stock Exchange. - -It became essential to the success of Mr. Gould’s plans that the Grant -administration should either become a party to the speculation or else -an honest believer in his crop theory. Failing in both of these, the -public must at least be impressed with the idea that the administration -was in the deal whether it was or not. So Gould began to lay systematic -siege around the administration. He seems to have entered alone into -this speculation. It was only when he was unable to carry the burden -alone that he took in others, and it was not until late in the game -that Fisk entered, Gould found a brother-in-law of President Grant a -convenient tool in his operations. The name of this brother-in-law was -A. R. Corbin, who had been something of an adventurer all his life, -and whose chief hold on respectability was his relationship to the -President. Gould unfolded enough of his plans to Corbin to enlist him -in his service and to bind him by interest to the speculation. Gould -bought for Corbin $1,500,000 of gold, and promised him that all the -profits should be turned over to him. Every rise of one per cent. in -the price of gold made Corbin $15,000 richer. Corbin claimed to have -great influence with the President, and Gould evidently placed much -reliance in him. “I am right behind the throne,” said Corbin to Gould -at one stage of the proceedings. “Give yourself no uneasiness. All is -right.” - -Mr. Henry Adams, in his celebrated chapter, “The New York Gold -Conspiracy,” makes the following interesting explanation of -circumstances preliminary to “Black Friday:” “In order to explain -the operation of a so-called corner in gold to ordinary readers with -the least possible use of slang or technical phrases, two preliminary -statements are necessary. In the first place, it must be understood -that the supply of gold immediately available for transfers is limited -within distinct bonds in America. New York and the country behind it -contain an amount usually estimated at about $20,000,000. The national -government commonly holds from $75,000,000 to $100,000,000, which may -be thrown bodily on the market if the President orders it. To obtain -gold from Europe, or other sources, requires time. - -“In the second place, gold in America is a commodity bought and sold -like stocks. In gold, as in stocks, the transactions are both real -and speculative. The real transactions are mostly purchases or loans -made by importers who require coin to pay custom on their imports. -The speculative transactions are mere wagers on the rise or fall of -price, and neither require any actual transfer of gold, or even imply -its existence, although in times of excitement hundreds of millions -nominally are bought, sold and loaned. - -“Under the late administration, Mr. McCulloch, then Secretary of the -Treasury, had thought it his duty at least to guarantee a stable -currency, although Congress forbade him to restore the gold standard. -During four years gold had fluctuated little and principally from -natural causes, and the danger of attempting to create an artificial -scarcity in it had prevented the operators from trying an experiment -which would have been sure to irritate the government. The financial -policy of the new administration was not so definitely fixed, and the -success of the speculation would depend on the action of Mr. Boutwell, -the new secretary, whose direction was understood to have begun by a -marked censure on the course pursued by his predecessor. - -“Of all financial operations, cornering gold is the most brilliant and -the most dangerous, and possibly the very hazard and splendor of the -attempt were the reasons of its fascination to Mr. Jay Gould’s fancy. -He dwelt upon it for months and played with it like a pet toy. His -fertile mind even went so far as to discover that it would prove a -blessing to the community, and on this ingenious theory, half honest -and half fraudulent, he stretched the widely extended fabric of the -web in which all mankind was to be caught. This theory was in itself -partially sound. Starting from the principle that the price of grain -in New York is regulated by the price in London, and is not effected -by currency fluctuations, Mr. Gould argued that if it were possible -to raise the premium on gold from 30 to 40 cents at harvest time, -the farmer’s grain would be worth $1.40 instead of $1.30, and as a -consequence the farmer would hasten to send all his crop to New-York -for export over the Erie railway, which was sorely in need of freight. -With the assistance of another gentleman, Mr. Gould calculated the -exact premium at which the western farmer would consent to dispose -of his grain, and thus distance the three hundred sail which were -hastening from the Danube to supply the English market. Gold, which was -then heavy at 34, must be raised to 45. - -“This clever idea, like all the other ideas of these gentlemen of Erie, -seems to have had the single fault of requiring that some one somewhere -should be swindled. The scheme was probably feasible; but sooner or -later the reaction from such an artificial stimulant must have come, -and whenever it came, some one must suffer. Nevertheless, Mr. Gould -probably argued that so long as the farmer got his money, the Erie -railway its freights, and he himself his small profits on the gold he -bought, it was of little consequence who else might be injured; and -indeed by the time the reaction came, and gold was ready to fall as -he expected, Mr. Gould would probably have been ready to assist the -process by speculative sales in order to enable the Western farmer to -buy his spring goods cheap, as he had sold his autumn crops dear. He -himself was equally ready to buy gold cheap and sell it dear on his -private account, and as he proposed to bleed New York merchants for the -benefit of the Western farmer, so he was willing to bleed Broad street -for his own. The patriotic object was, however, the one which, for -obvious reasons, Mr. Gould preferred to put forward most prominently -and on the strength of which he hoped to rest his ambitious structure -of intrigue.” - -Here is the story in brief: In March, 1869, the price of gold touched -130¼, which was the lowest figure that it had reached in three years. -Jay Gould, as president of the Erie railway and the principal owner of -the Tenth National Bank, had the command of large sums of money. He -proposed to Fisk that they take advantage of the low price of gold and -“corner” it. Fisk did not think the scheme practicable, and declined -at first to go in. Subsequently he reconsidered his determination and -joined in the undertaking zealously. Gould bought $7,000,000 of gold -at 132 and put up the price to 140. He induced other brokers to buy -heavily, and within a few days gold advanced to 144. It soon dropped -back to 136. The element of uncertainty in Mr. Gould’s plan was the -policy of the government with reference to gold sales. Should the -government at any time release some of the millions stored in the -Sub-Treasury here, no “corner” could be successful. - -The first step in the conspiracy after the bribing of Corbin and the -purchase of a large quantity of gold was to secure the appointment -of the right sort of man as Assistant Treasurer at New York. Though -nominally a subordinate officer and having no original authority, -the assistant treasurer draws the salary of a cabinet officer, and -his influence is large. Corbin undertook this part of the scheme -and secured the appointment of Gen. Butterworth, who seemed to give -great satisfaction to Gould. Butterworth was afterward exonerated by -Congress of all guilty connection with the gold conspiracy, but Gould -purchased for his account $1,000,000 of gold. But then Gould also had -the effrontery at one stage of the negotiations to buy $500,000 of -gold for Gen. Porter, the President’s private secretary, which that -gentleman promptly declined. It was said, also, that $500,000 was -purchased in the name of Mrs. Grant, but she never received any of the -profits and had no connection with the conspiracy. - -Butterworth secured, it was necessary to make an impression on the -President. Says Mr. Adams: “On the 15th of June, 1869, the President -came to New York, and was there the guest of Mr. Corbin, who urged -Mr. Gould to call and pay his respects to the chief magistrate. Mr. -Gould had probably aimed at precisely this result. He called, and the -President of the United States not only listened to the president of -Erie, but accepted an invitation to Mr. Fisk’s theatre, sat in Mr. -Fisk’s private box, and the next evening became the guest of these two -gentlemen on their magnificent Newport steamer.” - -The President was to be sounded in regard to his financial policy on -the occasion of this memorable trip to Boston, and when the selected -guests sat down at nine o’clock to supper the conversation was directed -to the subject of finance. “Some one,” says Mr. Gould, “asked the -President what his view was.” The “some one” in question was, of -course, Mr. Fisk, who alone had the impudence to put such an inquiry. -The President bluntly replied that there was a certain amount of -fictitiousness about the prosperity of the country, and that the bubble -might as well be tapped in one way as another. The remark was fatal to -Mr. Gould’s plans and he felt it, in his own words, “as a wet blanket.” - -Mr. Fisk, in his testimony, frankly said: - -“On our passage over to Boston with Gen. Grant we endeavored to -ascertain what his position in regard to finances was. We went down to -dinner about nine o’clock, intending, while we were there, to have this -thing pretty thoroughly talked up, and, if possible, to relieve him -from any idea of putting the price of gold down.” - -Mr. Gould in his testimony said of the President: “He was our guest. At -this supper the question came up about the state of the country, the -crops, and the prospects ahead. The President was a listener; the other -gentlemen were discussing. Some were in favor of Boutwell’s selling -gold, and some were opposed to it. After they had all interchanged -their views, some one asked the President what his view was. He -remarked that he thought there was a certain amount of fictitiousness -about the prosperity of the country, and that the bubble might as well -be tapped in one way as another. That was about the substance of his -remark. He then asked me what I thought about it. I remarked that I -thought if that policy was carried out it would produce great distress, -and almost lead to civil war.” - -However, Gould was already in, and he was not a man to back out as long -as he saw any chance for success, and he finally succeeded in really -impressing on the President’s mind that in order to move the crops it -was necessary that gold should sell at 145. Gould’s first purchases -had been made as low as 130¼, which was about the normal price. - -But it should be said at the outset that there is not a particle -of evidence that Gen. Grant was ever personally concerned in the -speculation or that he winked at members of his official household -being so. On the contrary, the evidence is all the other way. Grant -never seemed to like Gould. When the latter succeeded in getting his -first interview with the President, Gen. Grant reprimanded his servant -for allowing him so easy an access to his person, and at a later day -the President remarked to his Secretary that he did not like to have -that man--referring to Gould--around so much. “He is always trying to -get something out of me,” was the President’s remark. - -After the party returned to New York, Gen. Grant, Mr. Gould and Mr. -Corbin had private interviews on the gold question at Mr. Corbin’s -house. As a result of these interviews, according to Mr. Gould’s -testimony, the President remarked that the government would do nothing -during the fall months to put down the price of gold or to make money -tight. Just after those interviews Mr. Gould purchased two millions -in government bonds for Mr. Corbin’s account. The next interview with -President Grant on this great subject was at Newport, where James Fisk, -Jr., followed him. - -Fisk testified that Corbin told him that Mrs. Grant had an interest -in the gold speculations; that five hundred thousand of gold had been -taken by Mr. Gould at 131 and 132, which had been sold at 137; that -Mr. Corbin held for himself about two millions of gold, five hundred -thousand of which was for Mrs. Grant and five hundred thousand for -“Porter.” - -The story of the conspiracy, as Mr. Clews tells it, is interesting as -well, and has certain points of difference from the others. He says: - -“Although the policy of stopping the sale of gold had been agreed -upon in deference to the views of the best financiers of the country, -yet Mr. Gould and his fellow strategists thought it was best to make -assurance doubly sure on this point, in order that nothing might stand -in the way of the great speculative intrigue to get a “corner” in gold. -President Grant was conservative on the subject. The conspirators, -therefore, conceived the design of arranging things so that Secretary -Boutwell could not depart from this policy, no matter what emergency -might arise. - -“This bold and wicked strategy could only be successful by first -getting President Grant convinced that the theory of stopping the gold -sales was the only commercial salvation for the country, in the then -condition of business stagnation and the possible panic threatened. The -theory was then to impress him with the necessity of giving Secretary -Boutwell an absolute order not to sell gold, and afterward to fix -things so that it would be impossible for the President to revoke -that order until the brilliant speculative purposes of the clique in -cornering gold should be accomplished. - -“The scheme was but little short of treason, regarded from a patriotic -point of view, and it is very questionable if the perpetrators would -have stopped short of this dastardly act had they not been convinced -that their purpose was fully compassed by a method less villianous and -shocking. It was considered indispensable by the conspirators for the -consummation of their plans that Grant should be got out of the way -by some means or other. Fortunately for him and for the honor of the -nation, the plan succeeded without the necessity of offering him any -violence. - -“It was arranged that Gen. Grant should accompany a party one beautiful -evening in the middle of June, who were going to attend the great -Peace Jubilee of Patrick Sarsfield Gilmore in Boston. Jim Fisk did the -executive work in the arrangement. There was a fine champagne supper -on board the Boston boat and several gentlemen were present who were -thoroughly conversant with financial question’s and could talk glibly -on the state of the country. Mr. Gould said, in his testimony: ‘I took -the ground that the government ought to let go of the loan and let -it find its commercial level; that in fact it ought to facilitate an -upward movement in gold in the fall.’ - -“This reference to ‘its commercial level’ is rich, coming from the head -center of the plotters who wanted to put the article up to 200. - -“About the time the above events were transpiring, the Assistant -Secretary of the Treasury, Mr. H. H. VanDyck, resigned his office in -this city. Mr. Gould’s chief ambition was to name his successor in -order that he might be able to control the treasury when the time to -get a corner in gold should be ripe. Mr. Abel R. Corbin came in quite -handy at this juncture to help to further the designs of Mr. Gould. -He was a man of fair education and considerable experience both in -business and politics. He had been a lobbyist in Washington for some -years. He was well informed on financial matters, a pretty good writer, -and could talk like a book. His wife was a sister of Mrs. Grant and -he had good opportunities for reaching the presidential ear, which he -employed to the best advantage. - -“A gentleman named Robert B. Catherwood, who was married to a -step-daughter of Mr. Corbin, was approached by Gould and Corbin on the -subject of the Assistant Treasurership. They were anxious that Mr. -Catherwood should take the office and told him that he would make a -great deal of money in a perfectly legitimate manner if he were once -installed. - -“So Mr. Catherwood stated in his testimony before the investigating -committee, but he adds: ‘My ideas differed from theirs in what -constituted a legitimate manner and I declined the office.’ - -“The office then sought another man in the person of Gen. Daniel -Butterfield. He received the intimation of his appointment in a very -different spirit from Mr. Catherwood, showing that he was fully equal -to the occasion. He wrote a letter to Mr. Corbin, thanking him kindly -for the offer, saying that he was under numerous obligations to him, -and expressing a hope that he would be eminently successful in his -undertaking. Gen. Butterfield received his commission in due course. - -“Corbin talked with Grant until he received a positive assurance that -Boutwell was not to sell any more gold. At a meeting in Grant’s house, -where Gould and Corbin were present, the President said: ‘Boutwell gave -an order to sell gold, and I heard of it and countermanded the order.’ - -“It was not until Gould had received positive assurance from the -President’s own lips, that he considered his scheme perfect. But the -links of this strategic chain were now nearly all forged. The bankers -and merchants were largely in his favor through commercial necessity, -the Sub-Treasury was ‘fixed,’ as he thought, and the executive fiat -had placed the Treasury of the United States itself where it could not -spoil the deal if Grant did not change his mind. There were reasons, -of course, to apprehend that he would do so in case of an emergency; -for he never was privy to the scheme, no matter what his traducers and -political enemies may have said. - -“To insure perfect safety, then, Grant must be put out of the way -temporarily. This was the crowning effort of the conspirators. After -the Boston Peace Jubilee, this Cabal spent the remaining part of the -summer in maturing its designs. - -“It seemed necessary that all the members of the Cabal should be fully -acquainted with the combination to Grant’s purposes as regarded his -orders to Boutwell, and that his ideas should remain fixed on the -theory of increasing exportation for the country’s safety. Accordingly, -it was arranged that Jim Fisk should visit the President at Newport, -where he was on a visit, some time about the middle of August, a month -or so prior to Black Friday. It would seem that Grant at this date was -still wavering and adhering to his policy of selling gold, in spite of -the order which he had given Boutwell. He may have been suspecting that -the anxiety of Gould, Corbin & Co. for the prosperity of the country -was not altogether genuine. The necessity of bringing further pressure -to bear upon him was, therefore, clearly manifest. - -“Referring to the interview at Newport, Fisk said: ‘I think it was -some time in August that General Grant started to go to Newport. I -then went down to see him. I had seen him before, but not feeling as -thoroughly acquainted as I desired for this purpose, I took a letter -of introduction from Mr. Gould, in which it was stated that there were -three hundred sail of vessels then on the Mediterranean, from the -Black Sea, with grain to supply the Liverpool market. Gold was then -about thirty-four. If it continued at that price, we had very little -chance of carrying forward the crop during the fall. I know that we -felt nervous about it. I talked with Gen. Grant on the subject and -endeavored, as far as I could, to convince him that his policy was one -that would only bring destruction on us all. He then asked me when we -should have an interview, and we agreed upon the time. He said: ‘During -that time I will see Mr. Boutwell, or have him there.’ - -“The President was carefully shadowed after this by the detectives of -the clique, and great care was taken to throw men across his path who -were fluent talkers on the great financial problem of the day, the -absolute necessity of stimulating the export trade and raising the -premium upon gold for that patriotic purpose. In this way, President -Grant began to think that the opinion of almost everybody he talked -with on this subject was on the same side, and must, therefore, be -correct. - -“About the first of September, it was considered that the opinions of -the President had been worked up fairly to the sticking point, and -Gould bought $1,500,000 in gold at 132½ for Corbin. Gould, however, -was timid in his purchasing at first, as he had heard that a number -of operators who were short of gold were making arrangements to give -Secretary Boutwell a dinner. On further assurance from Corbin that the -President had written Boutwell to sell no gold without consulting him, -Gould prepared to go ahead with the execution of his great scheme. -Nothing remained to be done in the completion of the plot except to -stow away the President in a place of safety until the financial storm -should blow over.” - - - - -CHAPTER IX. - -CULMINATION OF CONSPIRACY--BLACK FRIDAY. - - -September is the memorable month of the gold conspiracy in Wall street. -Between the 20th of August and the first of September, Gould, in -company with Woodward and Kimber, two large speculators, made a pool -to raise the premium on gold, and some ten or fifteen millions were -bought, but with very little effect on the price. - -[Illustration: “BLACK FRIDAY” IN WALL STREET.] - -An event now took place which would have seemed to justify the implicit -belief of an Erie treasurer in the corruptibility of all mankind. -The unsuspicious President again passed through New York, and came -to breakfast at Mr. Corbin’s house on the 2d of September. He saw no -one but Mr. Corbin while there, and the same evening at ten o’clock, -departed for Saratoga. Mr. Gould declared afterward, however, that he -was told by Mr. Corbin that the President, in discussing the financial -situation, had shown himself a convert to the Erie theory about -marketing the crops, and had stopped in the middle of a conversation -in which he had expressed his views and written a letter to Secretary -Boutwell. In regard to this letter, Secretary Boutwell testified as -follows: - -“I think on the evening of the 4th of September I received a letter -from the President, dated at New York, as I recollect it; I am not sure -where it was dated. In that letter he expressed an opinion that it was -undesirable to force down the price of gold. He spoke of the importance -to the West of being able to move their crops. His idea was that if -gold should fall, the West should suffer and the movement of the crop -would be retarded. The impression made on my mind by the letter was -that he had rather a strong opinion to that effect. Upon the receipt -of the President’s letter, I telegraphed to Judge Richardson, ‘Send no -order to Butterfield as to sales of gold until you hear from me.’” - -Mr. Gould had therefore succeeded in reversing the policy of the -National Government, but this was not all. He knew what the government -would do before any officer of the government knew it. Mr. Gould was -at Corbin’s house on the 2d of September, and it seems certain that -he saw Corbin privately, unknown to the President, within an hour or -two after this letter to Mr. Boutwell was written, and that it was at -this interview, while the President was still in the house, that Mr. -Corbin gave him the information about the letter, perhaps showed him -the letter itself. It was immediately at this time that Gould bought -$1,500,000 worth of gold for Corbin. - -No time was lost, and from this day Gould bought largely of gold. He -did everything to give the public the impression that the government -was behind the “deal.” An article written by Corbin was published as -an editorial in the _Times_ and attracted attention, as the editor, -John Bigelow, had just had a conversation with the President and was -supposed to speak with authority. Notwithstanding the authorship of the -article, it is just to say that the _Times_ detected the odor of Wall -street about it and quarantined the article before making it public. -Its effectiveness for Gould was much lessened. Gould wrote to Boutwell -with a view of obtaining an official statement from him, but received -a reply that said little and that diplomatically. Meanwhile Gould -had been buying millions in gold and had formed a pool that bought -millions more. That the movement was fictitious is shown by the fact -that the impression on prices was comparatively small. Fisk looked on -incredulously. “The country is against you,” was his criticism of the -scheme. - -Down to this moment Jim Fisk had not appeared in the affair. It was -not until after September 10th that Gould appears to have decided that -there was nothing else to be done but to take him into confidence. Fisk -immediately bought seven or eight millions and the market began to -respond slowly to these enormous purchases. - -“Meanwhile Mr. Gould had placed another million and a half of gold -to the account of Gen. Butterfield and notified him of the purchase; -so Mr. Gould swears, in spite of Gen. Butterfield’s denial. The date -of this purchase is not fixed. Through Mr. Corbin a notice was also -sent by Gould about the middle of September to the President’s private -secretary, Gen. Porter, informing him that half a million was placed -to his credit. Gen. Porter instantly wrote to repudiate his purchase, -but it does not appear that Butterfield took any notice of Gould’s -transaction on his account. On the 10th of September the President had -again come to New York, where he remained his brother-in-law’s guest -till the 13th, and during this visit Mr. Gould appears again to have -seen him, although Mr. Corbin avers that on this occasion the President -intimated his wish to the servant that this should be the last time Mr. -Gould obtain admission. - -“Things were now so managed that the President was placed in a position -that his honor was seriously in danger of being compromised, yet so -ably was the matter engineered that he was perfectly unconscious of -the designs of the plotters. He was prevailed upon to go to a then -obscure town in Pennsylvania, named Little Washington. The thing was so -arranged that his feelings were worked upon to visit that place for the -purpose of seeing an old friend who resided there. The town was cut off -from telegraphic communications, and the other means of access were not -very convenient. The President set out on his journey on the morning of -the 13th, and there he was ensconced to remain for a week or so, about -the time the Cabal was fully prepared for action. - -“Gould then said to Fisk: ‘This matter is all fixed up. Butterfield -is all right. Corbin has got Butterfield all right and Corbin has got -Grant fixed all right, and in my opinion they are all interested -together.’ - -“This was patriotism with a vengeance. Just think of the audacity of -it! Gould enters into a scheme to place the President in a position -where he could not interfere with the plan of getting a ‘corner’ on -gold, and then he turns around and accuses the first magistrate of the -republic with being privy to a plot that was calculated to create a -panic and cause widespread disaster in business circles and make him an -object of universal contempt.” - -Some of the members of the pool got frightened and sold out, but Gould -continued to buy. “I had to buy,” testified Gould afterward, “or show -the white feather. The other fellows deserted me like rats.” Gould had -the material aid of the Tenth National Bank, an institution which he -owned and which he used as an adjunct to his speculative operations. -The extent to which he used it in the gold conspiracy was shown by the -fact that it in one day overcertified Gould’s checks to the amount -of $7,500,000. Garfield called this bank “a manufactory of certified -checks.” - -As Gould bought the bears sold “short” and the battle became intensely -exciting. - -Fisk’s assistance was as valuable as Gould expected it to be. He took -no stock in the crop theory, but the idea of making the administration -a partner in the diabolical enterprise seems to have attracted him. -“Nothing,” said Garfield in his report to Congress, “nothing but the -scent of corruption could sharpen the appetite of Fisk for the game -his leader (Gould) was pursuing. The compounded villainy presented by -Gould and Corbin was too tempting a bait.” So Fisk was drawn into the -movement when his aid was most needed. This corner was a glittering -edifice built on a foundation of deceit and corruption. It could not -long stand. The most that Gould and Fisk could do was to frighten the -“shorts” into covering before Grant awakened to the realization of how -he was being used and issue orders to sell gold. Wall street was soon -filled with rumors that the administration was in the deal and the -excitement ran high. - -“The malign influence,” says the Congressional report already quoted, -“which Cataline wielded over the reckless and abandoned youth of Rome -finds a fitting parallel in the power which Fisk held in Wall street -when, followed by the thugs of Erie and the debauchees of the opera, he -swept into the gold-room and defied both the street and the Treasury.” - -The magnitude of the conspiracy is shown by the fact that before Black -Friday Gould had employed fifty to sixty brokers to make his purchases, -and $50,000,000 to $60,000,000 of gold had been bought by William Heath -& Co., Woodward, H. K. Enos, E. K. Willard, and others of the brokers. -He required all this to advance the price of gold from 135½ to 140½. - -Fisk’s entrance into the game was a powerful help to Gould, for it -not only furnished another purchaser for gold, but directed public -attention from himself to Fisk. The ex-peddler loved to bask in the -sun of public notoriety. Gould was timid, but Fisk had the brazen -courage of a courtesan. - -Gould and Fisk now became exceedingly nervous over the firmness of the -President’s policy. He induced Mr. Corbin to write a letter directly -to the President himself. This letter, written on the seventeenth, -under the influence of Gould’s anxiety, was instantly sent away by a -special messenger of Fisk’s, who rode twenty-eight miles on horseback -from Pittsburg, and delivered it in person to the President. He read -the letter, and had his suspicions at once aroused. He said laconically -to the messenger: “It is satisfactory; there is no answer.” He began -to see through the game, and at once desired Mrs. Grant to write to -Mrs. Corbin requesting her husband to have nothing more to do with the -Gould-Fisk gang. - -The messenger telegraphed “All right” to the conspirators. - -“We now come to the week which was to witness the explosion of all this -elaborately constructed mine. On Monday the 20th, gold again rose. -Throughout Tuesday and Wednesday, Fisk continued to purchase without -limit and forced the price up to 40. At this time, Gould’s firm of -Smith, Gould & Martin, through which the operation was conducted, had -purchased some $50,000,000, and yet the bears went on selling, although -they could only continue the contest by borrowing Gould’s own gold. -Gould, on the other hand, could no longer sell and clear himself, for -the reason that the sale of $50,000,000 would have broken the market to -nothing. The struggle had become intense. The whole country was looking -on with astonishment at the battle between the bulls and the bears. All -business was deranged and all values unsettled. There were indications -of a panic in the stock market; and the bears, in their emergency, -were vehemently pressing the government to intervene. Gould now wrote -to Mr. Boutwell a letter so inconceivably impudent that it indicates -desperation and entire loss of his ordinary coolness: - -“Sir: There is a panic in Wall street, engineered by a bear -combination. They have withdrawn currency to such an extent that it is -impossible to do ordinary business. The Erie company requires $800,000 -to disburse. Much of it in Ohio, where an exciting political contest -was going on and where we have about ten thousand employed, and the -trouble is charged on the administration. Cannot you consistently -increase your line of currency?” - -From a friend, such a letter would have been an outrage, but from a -member of the Tammany ring, the principal object of detestation to the -government, such a threat or bribe, whichever it may be called, was -incredible. Mr. Gould was, in fact, at his wits’ end. He dreaded a -panic and felt that it could no longer be avoided. - -The conspirators interpreted the telegram from their messenger, reading -“all right” to mean a favorable answer to the letter, and they were -much elated. But the President, supposing that the messenger was -only a clerk from the post-office, had said “all right” merely to -indicate that he had received the letter and required his presence -no longer. His suspicions were aroused after the messenger had left, -when he ascertained that he had brought the letter at post-haste all -the way from New York. That night Mrs. Grant wrote to Mrs. Corbin a -note stating that the President had heard that Mr. Corbin was engaged -in Wall street speculations, and if it were true he desired that he -should immediately dissociate himself from them. This letter filled -Gould with consternation. He and Corbin sat in the latter’s house -all night reading and rereading the note and endeavoring to grasp -the meaning between the lines. “If you show that note,” said Gould, -finally, “I am a ruined man.” Corbin said he must obey orders and leave -the street, but he insisted Gould should first take up the gold held -in Corbin’s name and pay him the profits. Corbin had already received -a check for $25,000. But Gould had already all the gold he wanted, and -after standing for a while in silence by the door, his brow black with -mystery, he left the house. - -The game was up. One stroke of a woman’s pen had punctured the dazzling -bubble. A word from the President was sufficient to collapse the -biggest corner on record. How to save himself? That was the question -which, with knit brow and lips compressed with hidden excitement, Gould -debated as he returned home that night. No thought for others who -were deep in the game with himself. No thought for Fisk, his friend -and associate. His mind labored for himself alone. He soon reached -a conclusion. While there was yet time he would dump his heavy load -of gold on the market and let others take what he could not carry. -His only capital now was the early information he possessed of the -President’s aroused suspicions; of his change of purpose. He did -not tell even Fisk of Mrs. Grant’s letter to Mrs. Corbin, but let -Fisk continue his purchases in ignorance of the real situation. He -only remarked to Fisk that Corbin was getting weary and wanted his -profits, or something to that purpose. Thursday--the day preceding -Black Friday--Gould began his dumping process. “I sold that day,” he -testified afterward, “and only bought enough to make the street think I -was still a bull.” - -Here is Mr. Clews’ story of days immediately preceding the fatal Friday. - -“On Wednesday, the 22d of September, two days preceding ‘Black Friday,’ -the clique, it is believed, owned several millions more gold than -there was in the city, outside the vaults of the sub-treasury. Belden -bought about eight millions of gold on that day, while Smith, Gould, -Martin & Co. were also heavy purchasers. The clique held a caucus in -the office of Wm. Heath & Co. in Broad street and concluded that it had -gold enough to put the price to 200 if it could carry the gold without -lending and compel the shorts to purchase. But the idea of finding a -market for over thirty millions of gold was also a gigantic problem, -and they felt the risk of being ground between the upper and the nether -millstones of their scheme. - -“On the morning of Thursday another council of war was held in the -office of Belden & Co., on Broadway. At this meeting, Gould, Fisk, -Henry N. Smith and William Belden were present. The proceedings of this -meeting were kept a profound secret, but one result of it was that -Belden gave his clerk the famous order to put gold to 144 and keep it -there. On that day Belden purchased about twenty millions of gold, the -price opening at 141½ and closing at 143½. - -“The chiefs of the Cabal had another private meeting up town that -evening. The great question of closing up the transactions on the -following day was the chief topic of discussion. These operators held -contracts for over $100,000,000 in gold. Gould said that the ‘short’ -interest was $250,000,000. The total amount of gold in the city did not -exceed $25,000,000, and the difference between this and the aggregate -amount of the contracts of the clique was the enormous amount that -would have to be settled in the event of a ‘corner.’ - -“Fisk proposed that the clique show its hand, publish the state of -affairs, and offer to settle with the shorts at 150. His plan was -rejected by his brother conspirators.” - -And now opens that remarkable day in September, 1869, known as “Black -Friday.” Wall street has passed through other days of excitement and -calamity, but even the panic days of 1873 and 1884 pale before the -awful passion and fury of Black Friday. - -The New York _World_ of September 25, 1869, thus describes the day: - -“The scene during the conflict almost beggars description and exceeds -anything ever before witnessed in Wall street. It was a tussle of -enormous magnitude, fierce and desperate. It was a day long to be -remembered and not easily forgotten by those who witnessed it or were -caught in the maelstrom that carried everything before it.” - -The conspirators were early in the street, and the offices of Smith, -Gould & Martin, Fisk & Belden and William Heath & Co. were the center -of enormous excitement. William Belden, who was Fisk’s partner, -played a conspicuous part in this day’s history. He was a man cool -and daring--the fit companion of such men as Gould and Fisk. The day, -however, left a stain on his record that could never be obliterated, -and when, in 1888, Belden formed a co-partnership with a member of the -Stock Exchange, the governing committee of the institution stated that -unless the member severed his partnership with Belden he must leave the -Exchange. - -Gould, Fisk, Belden and their brokers held a counsel of war and laid -out the work of the day. Heath was to look after this, Willard was -to attend to that, Belden was to direct this and Fisk was to direct -that, while “Gould”--the language of the Congressional report is now -quoted--“Gould, the guilty plotter of all these criminal proceedings, -determined to betray his own associates, and silent and imperturbable, -by nods and whispers directed all.” “I determined,” said Mr. Gould -afterward, “not to open my mouth that day, and I did not.” - -What a study for a dramatic painter Gould would have made that day! - -There was undoubtedly some secret understanding between Fisk and Belden -to which Gould was a party, by which all the orders given that day -could be repudiated if the market went against them. A ready tool was -found in Albert Speyer, who accepted verbal orders from Belden in the -presence of Gould and Fisk to buy, and who went into the board-room and -did buy immense quantities of gold at the highest prices. The street -was filled with the wildest rumors. Prices rapidly advanced to 165. -The shorts trembled before the rising tide that seemed about to sweep -over them. Many were frightened into covering their contracts. Gould -continued to sell. Fisk and Belden continued to buy. The excitement -rose point by point to the wildest pitch. Old operators lost their -heads, men rushed hatless and half crazy through the streets, their -eyes bloodshot, their faces pale with anxiety, their brains on fire. -There came rumors of contemplated selling of gold by the Treasury, -and the street went mad. Where these rumors started no one ever knew, -but they were the forerunners of actual fact. James Brown, the Scotch -banker, appeared in the board and began to offer gold at declining -figures. Then the earthquake started, and the golden edifice built by -Gould began to tumble. Soon the Treasury order to sell $4,000,000 of -gold appeared, and then the terrible collapse. Prices fell from 165 -to 133½. The board-room was the scene of contending furies. Albert -Speyer completely lost control of himself; his hair is said to have -turned white that night after he went home a ruined man. Wall and Broad -streets were filled with men wild with excitement. Infuriated mobs -surrounded the offices of Fisk & Belden and Smith, Gould & Martin. -Threats of violence were made. Speyer went about saying: “Some one has -threatened to shoot me. Let him shoot.” The Gold Exchange Bank was -obliged to suspend operations. Its clearances that day amounted to -over $300,000,000 of gold. Trading was stopped in the Gold Board. Fisk -& Belden suspended and their contracts were repudiated. The fortunes -of hundreds were swept away in that day’s battle. Several firms were -driven to the wall and announced their failures. The administration was -involved in suspicion which it took years to remove. The nation was -disgraced and its credit was broken. - -But Gould, “the guilty plotter of all these criminal proceedings,” went -home saved. What he made or what he lost in that struggle is unknown, -but though he had involved others in ruin and had betrayed others, he -had saved himself from overthrow. To have gone down in the fight would -have been a display of heroism. To save himself alone from the wreck -was dishonor. - -It is not strange that in his sworn autobiography delivered to the -Committee on Labor and Education, Mr. Gould omitted all mention of -Black Friday, but when as a witness before the Committee on Corners -he was asked about the Black Friday panic, he calmly said that it -was the “result of overtrading,” and that its real cause was “the -fluctuations in the price of gold caused by the war!” It is a singular -coincidence that exactly twenty-two years after Black Friday, on the -very anniversary of the day in 1891, Gould caused another big flurry in -Wall street. After several years of depression, a “boom” in stocks was -in progress, when the sudden announcement was made that the Missouri -Pacific, of which Gould was president, would pass its dividend. The -announcement caused a revolution in prices and the “boom” completely -collapsed. - -Mr. Clews tells a graphic story of what he saw: - -“On the morning of the fatal day, Belden and William Heath had an early -breakfast together at the Fifth Avenue Hotel, and repaired immediately -to their offices. Belden announced that gold was going to 200. ‘This -will be the last day of the Gold Room,’ he added. Moved by Belden’s -threat, a large number rushed to cover. In the language of Henry N. -Smith, ‘They came on with a rush to settle.’ He was settling in the -office of Smith, Gould & Martin, at 150 to 145, while Albert Speyer, -acting as broker for Fisk and Gould, was bidding up to 160 for a -million at a time. It was only when the price came down to 133 that -Speyer realized the humorous absurdity of his position. He had then -bought 26 millions since morning at 160. - -“A voracious demand for margins about midday brought the work to a -crisis. The scene at the office of Heath was indescribable when Belden -went there to see Gould and his confederates, to find out what was -to be done next with the frenzied purchasers. An eye-witness thus -describes the scene at Heath’s office: ‘I went outside while Belden -went in. I walked up and down the alley-way waiting for him to come -out. Deputy sheriffs, or men appearing to be such, began to arrive and -to mount guard at Heath’s office to keep out visitors. After waiting -a prodigious long time, as it seemed to me, Jay Gould came creeping -out of the back door, and looking round sharply to see if he was -watched, slunk off through a private rear passage behind the buildings. -Presently came Fisk, steaming hot and shouting. He took the wrong -direction at first, nearly ran into Broad street, but soon discovered -his error and followed Gould through the rear passage. Then came -Belden, with hair disordered and red eyes, as if he had been crying. He -called: ‘Which way have they gone?’ and upon my pointing the direction, -he ran after them. The rear passage led into Wall street. At its exit -the conspirators jumped into a carriage and fled the street.” - -They did not fly the street, however, but went to the Broad street -office of Smith, Gould & Martin, where the crowd assembled, evidently -with riotous intent, apparently bent upon an application to Judge -Lynch for justice; and had any of the gentlemen appeared outside the -confines of the front wall, the chances were that the lamp-post near by -would have very soon been decorated with a breathless body. To insure -their safety inside, however, a small police force kept guard outside, -which made the barricade complete. These gentlemen remained under -this shelter until the small hours of the morning, busily endeavoring -to find out where they stood in the result of the gold deal; and the -more they pondered over it, the greater grew the doubt in their minds -whether they were standing on their heads or their heels.” - -The story told by Mr. Adams is also worthy of repetition as a graphic -description of the terrors of the day. Beginning with the morning -before, he says: - -“It was the morning of Thursday, the 3d; Gould and Fisk went to Broad -street together, but as usual Gould was silent and secret, while Fisk -was noisy and communicative. There was now a complete separation in -their movements. Gould acted entirely through his own firm of Smith, -Gould & Martin, while Fisk operated principally through his old -partner, Belden. One of Smith’s principal brokers testifies: ‘Fisk -never could do business with Smith, Martin & Gould very comfortably. -They would not do business for him. It was a very uncertain thing, of -course, where Fisk might be. He is an erratic sort of genius. I don’t -think anybody would want to follow him very long. I am satisfied that -Smith, Gould & Martin controlled their own gold and were ready to do -as they pleased with it without consulting Fisk. I do not think there -was any general agreement. None of us who knew him cared to do business -with him. I would not have taken an order from him nor had anything -to do with him.’ Belden was considered a very low fellow. ‘I never -had anything to do with him or his party,’ said one broker employed -by Gould. ‘They were men I had a perfect detestation of; they were no -company for me. I should not have spoken to them at all under ordinary -circumstances.’ Another says, ‘Belden is a man in whom I never had any -confidence in any way. For months before that I would not have taken -him for a gold transaction.’ - -“And yet Belden bought millions upon millions of gold. He himself -says he had bought twenty millions by this Thursday evening, and this -without capital or credit except that of his brokers. Meanwhile Gould, -on reaching the city, had at once given secret orders to sell. From the -moment he left Corbin he had but one idea, which was to get rid of his -gold as quietly as possible. ‘I purchased merely enough to make believe -I was a bull,’ says Gould. This double process continued all that -afternoon. Fisk’s wild purchases carried the price up to 144, and the -panic in the street became more and more serious as the bears realized -the extremity of their danger. No one can tell how much gold which -did not exist they had contracted to deliver or pay the difference in -price. One of the clique brokers swears that on this Thursday evening -the street had sold the clique one hundred and eighteen millions of -gold, and every rise of one per cent, on this sum implied a loss of -more than one million dollars to the bears. Naturally the terror was -extreme, for half Broad street and thousands of speculators would have -been ruined if compelled to settle gold at 150 which they had sold at -140. It need scarcely be said that by this time nothing more was heard -in regard to philanthropic theories of benefit to the western farmer. - -“Mr. Gould’s feelings can easily be imagined. He knew that Fisk’s -reckless management would bring the government upon his shoulders, -and he knew that unless he could sell his gold before the order came -from Washington he would be a ruined man. He knew, too, that Fisk’s -contracts must inevitably be repudiated. This Thursday evening he sat -at his desk in the Erie offices at the opera house, while Fisk and -Fisk’s brokers chattered about him. ‘I was transacting my railroad -business. I had my own views about the market and my own fish to fry. -I was all alone, so to speak, in what I did, and I did not let any of -those people know exactly how I stood. I got no ideas from anything -that was said there. I had been selling gold from 35 up all the time, -and I did not know till the next morning that there would probably come -an order about twelve o’clock to sell gold.’ He had not told Fisk a -word in regard to Corbin’s retreat nor his own orders to sell. - -“When the next day came, Gould and Fisk went together to Broad street -and took possession of the private back office of a principal broker, -‘without asking the privilege of doing so,’ as the broker observes -in his evidence. The first news brought to Gould was a disaster. The -government had sent three men from Washington to examine the bank which -Gould owned, and the bank sent word to Mr. Gould that it feared to -certify for him as usual, and was itself in danger of a panic, caused -by the presence of officers, which created distrust of the bank. It -barely managed to save itself. Gould took the information silently, -and his firm redoubled sales of gold. His partner, Smith, gave the -orders to one broker after another--‘Sell ten millions!’ ‘The order -was given as quick as a flash, and away he went,’ says one of these -men. ‘I sold only eight millions.’ ‘Sell, sell, sell! do nothing but -sell!--only don’t sell to Fisk’s brokers,’ were the orders which Smith -himself acknowledges. In the gold-room Fisk’s brokers were shouting -their rising bids, and the packed crowd grew frantic with rage and -terror as each successive rise showed their increasing losses. The -wide streets outside were thronged with excited people; the telegraph -offices were overwhelmed with messages ordering sales or purchases of -gold or stocks; and the whole nation was watching eagerly to see what -the result of this convulsion was to be. All trade was stopped, and -even the President felt that it was time to raise his hand. No one who -has not seen the New York gold-room can understand the spectacle it -presented; now a perfect pandemonium, now silent as the grave. Fisk, in -his dark back office across the street, with his coat off, swaggered -up and down, ‘a big cane in his hand,’ and called himself the Napoleon -of Wall street. He really believed that he directed the movement, and -while the street outside imagined that he and Gould were one family, -and that his purchases were made for the clique, Gould was silently -flinging away his gold at any price he could get for it. - -“Whether Fisk really expected to carry out his contract, and force -the bears to settle or not, is doubtful, but the evidence seems to -show that he was in earnest and felt sure of success. His orders were -unlimited. ‘Put it up to 150,’ was one which he sent to the gold-room. -Gold rose to 150. At length the bid was made--‘160 for any part of -five millions,’--‘162 for five millions.’ No answer was made and the -offer was repeated--‘162 for any part of five millions.’ A voice -replied, ‘Sold one million at 62,’ The bubble suddenly burst, and -within fifteen minutes, amid an excitement without parallel even in the -wildest excitements of the war, the clique workers were literally swept -away and left struggling by themselves, bidding still 160 for gold in -millions which no one would any longer take their word for, while the -premium sank rapidly to 135. A moment later the telegraph brought the -government order from Washington to sell, and the result was no longer -possible to dispute. Mr. Fisk had gone too far, while Mr. Gould had -secretly weakened the ground under his feet. - -“Gould, however, was saved. His fifty millions were sold; and although -no one yet knows what his gains or losses may have been, his firm was -now able to meet its contracts and protect its brokers. Fisk was in a -very different situation. So soon as it became evident that his brokers -would be unable to carry out their contracts, every one who had sold -gold to them turned in wrath to Fisk’s office. Fortunately for him it -was protected by armed men whom he had brought with him from his castle -of Erie; but nevertheless the excitement was so great that both Mr. -Fisk and Mr. Gould thought it best to retire as rapidly as possible to -a back entrance leading into another street, and seek the protection of -the opera house. There nothing but an army could disturb them; no civil -mandate was likely to be served without their permission within these -walls, and few men would care to face Fisk’s ruffians in order to force -an entrance. - -“The subsequent winding up of this famous conspiracy may be stated -in few words. But no account could possibly be complete which failed -to reproduce in full the story of Mr. Fisk’s last interview with Mr. -Corbin, as told by Fisk himself. ‘I went down to the neighborhood of -Wall street Friday morning, and the history of that morning you know. -When I got back to our office, you can imagine I was in no enviable -state of mind, and the moment I got up street that afternoon I started -right around to old Corbin’s to rake him out. I went into the room and -sent word that Mr. Fisk wanted to see him in the dining-room. I was too -mad to say anything civil, and when he came into the room, said I, ‘You -damned old scoundrel, do you know what you have done here, you and your -people?’ He began to wring his hands, and ‘Oh!’ he says, ‘this is a -horrible position. Are you ruined?’ I said I didn’t know whether I was -or not; and I asked him again if he knew what had happened? He had been -crying, and said he had just heard; that he had been sure everything -was all right, but that something had occurred entirely different from -what he had anticipated. Said I, ‘That don’t amount to anything; we -know that gold ought not to be at 31, and that it would not be but -for such performances as you have had this last week; you know damned -well it would not if you had not failed.’ I knew that somebody had run -a saw right into us, and said I, ‘This whole damned thing has turned -out just as I told you it would.’ I considered the whole party a pack -of cowards, and I expected that when we came to clear our hands they -would sock it right into us. I said to him, ‘I don’t know whether you -have lied or not, and I don’t know what ought to be done with you.’ -He was on the other side of the table, weeping and wailing, and I was -gnashing my teeth. ‘Now,’ he says, ‘you must quiet yourself.’ I told -him I didn’t want to be quiet. I had no desire to ever be quiet again, -and probably never should be quiet again. He says, ‘But, my dear sir, -you will lose your reason.’ Says I, ‘Speyers’ (a broker employed by -him that day) ‘has already lost his reason; reason has gone out of -everybody but me.’ I continued, ‘Now what are you going to do? You have -got us into this thing, and what are you going to do to get out of -it?’ He says, ‘I don’t know. I will go and get my wife.’ I said, ‘Get -her down here.’ The soft talk was all over. He went up stairs and they -returned, tottling into the room, looking older than Stephen Hopkins. -His wife and he both looked like death. He was tottling just like that. -(Illustrated by a trembling movement of the body.) ‘I have never seen -him from that day to this.’ - -“This is sworn evidence before a committee of Congress, and its humor -is perhaps the more conspicuous because there is every reason to -believe that there is not a word of truth in the story from beginning -to end. No such interview ever occurred, except in the unconfined -apartments of Mr. Fisk’s imagination. His own previous statements make -it certain that he was not at Corbin’s house at all that day, and -that Corbin did come to the Erie offices that evening and again the -next morning. Corbin himself denies the truth of the account without -limitation; and adds that when he entered the Erie offices the next -morning, Fisk was there. ‘I asked him how Mr. Gould felt after the -great calamity of the day before.’ He remarked, ‘Oh, he has no courage -at all. He has sunk right down. There is nothing left of him but a heap -of clothes and a pair of eyes.’ The internal evidence of truth in this -anecdote would support Mr. Corbin against the world. - -“In regard to Mr. Gould, Fisk’s graphic description was probably -again inaccurate. Undoubtedly the noise and scandal of the moment -were extremely unpleasant to this silent and impenetrable intriguer. -The city was in a ferment, and the whole country pointing at him with -wrath. The machinery of the gold exchange had broken down, and he alone -could extricate the business community from the pressing danger of a -general panic. He had saved himself, it is true; but in a manner which -could not have been to his taste. Yet his course from this point must -have been almost self-evident to his mind, and there is no reason to -suppose that he hesitated.” - -“His own contracts were all fulfilled. Fisk’s contracts all except -one, in respect to which the broker was able to compel a settlement, -were repudiated. Gould probably suggested to Fisk that it was better -to let Belden fail, and to settle a handsome fortune on him than to -sacrifice something more than $5,000,000 in sustaining him. Fisk, -therefore, threw Belden over, and swore that he had acted only under -Belden’s order. One of the first acts of the Erie gentlemen after the -crisis was to summon their lawyers and set in action their judicial -powers. The object was to prevent the panic-stricken brokers from using -legal process to force settlements and to render the entanglement -inextricable. Messrs. Field & Shearman came and instantly prepared a -considerable number of injunctions, which were sent to their judges, -signed at once, and immediately served. Gould then was able to dictate -the terms of settlement, and after a week of complete paralysis, Broad -street began at last to show signs of returning life. - -“The fate of the conspirators was not severe. Mr. Corbin went to -Washington, where he was snubbed by the President, and at once -disappeared from public view, only coming to light again before the -congressional committee. General Butterfield, whose share in the -transaction is least understood, was permitted to resign his office -without any investigation. Speculation for the next six months was at -an end. Every person involved in the affair seemed to have lost money, -and dozens of brokers were swept from the street. But Mr. Jay Gould and -Mr. James Fisk, Jr., continued to reign over Erie, and no one can say -that their power or their credit was sensibly diminished by a shock -which, for the time, prostrated all the interests of the country.” - - - - -CHAPTER X. - -GOULD AND THE WESTERN RAILWAY SYSTEMS. - - -After Mr. Gould was ousted from Erie, he entered into that career of -acquisition which made him the master of several of the most important -railroads in the United States, of the Yale system of telegraph and -of the chief line of transportation in New York city. In nearly all -his railroad operations he repeated, to a greater or less extent, his -career in Erie. His scheme was to buy up cheap and bankrupt roads, -reorganize them, issue new stock and bonds, unload on some other road, -or else, by the payment of dividends, get the public interested in the -property and sell at big profits. Or he would reverse the operation and -take a great property and squeeze it like a lemon. His career in Union -Pacific comes naturally first in order. For ten years he was master -of this great system which, with the Central Pacific, constitutes the -first and most important of the lines leading to the Pacific coast. His -record in this road has been a matter of official investigation, and -this part of Mr. Gould’s history, as well as that of the Erie and Black -Friday periods, is based on sworn testimony. But first, it is but fair -that Mr. Gould’s own account of his connection with Union Pacific, as -stated in his testimony before the Senate Committee on Labor and -Education, should be given. Having omitted all mention of Erie Mr. -Gould said: - -[Illustration: GOULD BEFORE THE CONGRESSIONAL COMMITTEE.] - -“I then went into the Union Pacific road. I met Horace Clark and -Augustus Schell out West, and they gave me so good an account of the -road that I concluded I would buy in it. I telegraphed to New York -an order to buy at a certain price. When Mr. Clark got home he was -taken ill, and as soon as his brokers learned that his illness was to -be fatal, they sold out his stock. That broke the market and filled -orders which I had sent at a price lower than I ever expected. When I -got home I found myself the owner of a large amount of this property, -and at once inquired into its condition. I learned that it was saddled -with a large floating debt, and that there were ten million dollars of -bonds coming due within a month. It was in rather a blue condition. -The directors were consulting who should be the receiver. I made up my -mind that I would carry it through, and I told them that if they would -furnish half of the money to pay the debt, I would furnish the other -half. The stock went down to 15. It was a large loss, but still I kept -right on buying, so when the turn came there did not seem to be any top -to it. It went up to 75, and I immediately went to work to bring the -road up. I went out over it, started coal mines, and to the surprise -of everybody it soon began to pay dividends and has never passed a -dividend since. - -“Well,” continued Mr. Gould, “when this road began to be a financial -success and developed other ways there arose quite a clamor, and it -was said to be Jay Gould’s road, as though it were a dangerous thing -to have one man control a road. I thought that it was better to bow to -public opinion, so I took the opportunity when I could to place the -stock in the hands of investors. In the course of a very few months, -instead of owning control of the road I was entirely out of it, and -the stock was 20 per cent. higher than I had sold it for. Instead of -being thirty or forty stockholders, there were between six and seven -thousand, representing the savings of widows and orphans. There were -also a great many lady stockholders. That was about four years ago, -after Congress enacted very harsh legislation, after they had broken -the bargain they had made to get the road through in its early stages.” - -“You refer to the Thurman act?” asked the chairman. - -“Yes, and that closed my connection with the Union Pacific road.” - -This is a very beautiful picture and it makes out Mr. Gould to be a -most public-spirited and generous man--one ready to sacrifice his own -interests in obedience to the demand of public opinion. But, having -looked on this picture, look upon that drawn by the Pacific Railroad -Commission, appointed by President Cleveland in 1887, and composed of -ex-Gov. Pattison, of Pennsylvania; E. Ellery Anderson, of New York, and -David Littler, of Illinois. The commission made two reports, agreeing -substantially, only that of ex-Gov. Pattison was more severe in its -conclusions. - -In the majority report, by Messrs. Anderson and Littler, the purchase -of a controlling interest by Jay Gould in 1873, the subsequent increase -in the capital stock to 200,000 shares, the inauguration of the policy -of constructing branch lines in 1877 and the commencement of the -action by the United States against the directors of the Union Pacific -for misappropriating the assets of the company were detailed and the -report went on to say: “It appears from the minutes of the company that -while this litigation was pending certain proceedings were taken by -the directors, whereby by their own acts and votes they undertook to -release themselves from any obligations or liabilities to the company.” -The Kansas Pacific’s financial operations from 1864 to 1880 were also -taken up and the circumstances leading up to its consolidation in the -Union Pacific system were detailed at great length. The acquisition -by Jay Gould in 1877, at nominal figures, of several millions of -securities of the Kansas Pacific was spoken of, and the reorganization -of that company under the control of Gould was detailed and the methods -severely condemned. The effect of the consolidation was to increase the -stock of the Union Pacific from $38,000,000 to $50,000,000, and the -bonded indebtedness from $88,000,000 to $126,000,000, and the other -indebtedness from $4,000,000 to nearly $10,000,000. It was declared -that “the three years following the consolidation were years of great -business activity, and the receipts of the Union Pacific for 1880, -1881, 1882 and 1883 were largely increased,” but “in the face of a very -large and apparently profitable business” the company found itself -early in 1884 on the verge of bankruptcy.” Competition, the burden -of its fixed charges, the extravagant sums paid for branch railroads -of little or no earning power bought by Mr. Gould, and the “lavish -and reckless distribution of the assets of the company in dividends, -all combined to produce this result.” After stating that Gould’s -connection with the road ceased in 1883, the report says: “It is with -a sense of great relief that the commission turns from the history of -this company from 1873 to 1883 [the period of Gould’s control--Ed.] -to the conservative, energetic and intelligent management that has -characterized the management from the opening of 1884 to the present -time.” - -Ex-Gov. Pattison, in his report, said: - -“The Union Pacific company has received $176,294,793.53 in surplus -earnings and land sales during eighteen years, and if its stock had -been fully paid, as Congress required that it should be and as its -officers certified under oath that it was, nearly all of that money -would be applicable to-day to the payment of the government debt. The -company has paid out $28,650,770 in dividends, and $82,742,850 in -interest on bonds, nearly all of which were distributed to shareholders -without consideration. It has sunk over $10,000,000 in Denver, South -Park and Pacific; it paid out $10,000,000 to Jay Gould and his -associates for branch lines and other investments which were worthless, -and which were unloaded upon the Union Pacific because of the -faithlessness of the management of the company. The gross mismanagement -of the Union Pacific and the other Pacific railroads has injured the -credit of foreign investors to such an extent that hundreds of millions -of dollars, which otherwise would have been sent here for investment -and aided in the development of the country, have been locked up -abroad.” - -Every line of this indictment is directed at Gould. Yet Charles Francis -Adams, the author of “A Chapter in Erie,” and who became president of -the Union Pacific about the time Gould retired, told the commission -that he believed from careful scrutiny that Mr. Gould had always been -more than fair to the company. But the commission, with all the facts -before it, rejected his view of the case. - -When Mr. Gould secured possession of the Union Pacific, Sidney Dillon -was president of it, and they with other large stockholders agreed upon -a plan to fund the floating debt in bonds, of which Mr. Gould took -$1,000,000. Mr. Gould remained in practical control of the property -until about 1880, when public opinion clamored for a change, and as -Mr. Gould said to one of the numerous investigating committees before -which he was called upon during his busy life to testify: “I bowed to -public opinion. I let outside parties in and soon, instead of thirty -or forty stockholders, there were 6,000 or 7,000.” Mr. Charles Francis -Adams succeeded Sidney Dillon as president, and in a short time an -astonished public beheld the spectacle of the author of the scathing -“Chapter of Erie” standing sponsor for the man he had denounced. Mr. -Gould managed to persuade Mr. Adams to view the future of Union Pacific -through his (Gould’s) eyes, and in consequence Mr. Adams unconsciously -assisted Mr. Gould in disposing of large blocks of the stock to good -advantage. In 1891 Mr. Gould again got control of the Union Pacific -road, owing to peculiar Wall street conditions, and he calmly turned -Mr. Adams out of the presidency and put Sidney Dillon back there. - -“In 1876 Mr. Gould began buying Kansas Pacific stock because it was -cheap. At that time stock speculators did not regard the stock as -being worth anything. Mr. Gould, however, was looking away ahead, and -he bought largely of Denver Pacific securities and stock and bonds of -the St. Joe and Western, the Kansas Central, and Central Branch roads. -All of these securities he got at a very low price, and he realized an -enormous profit when they were all turned in under the famous Union -Pacific consolidation scheme in 1880. For his Central Branch stock -alone he received $239 per share. Mr. Gould was one of the first to -suggest the consolidation of the Kansas Pacific and its subsidiary -roads with the Union Pacific. He employed Solon Humphreys and Gen. -Dodge to go West, look over the situation, and make a report on the -practicability of the consolidation. - -In 1879 a consolidated mortgage was issued by the Kansas Pacific -to wipe out the innumerable securities bearing different rates of -interest which were then burdening the road. Jay Gould and Russel Sage -were then directors of both the Union and the Kansas Pacific roads, and -they were made trustees of this mortgage. Among the assets covered by -this mortgage were 30,000 shares of the Denver Pacific railroad, then -of little value, but which, under the plan of consolidation which Gould -was then maturing, would become of great value. Sidney Dillon, who -was associated with Gould and Sage in all three roads, asked them to -release these stocks from the lien of the mortgage. Gould and Sage sat -down at the same desk at which Dillon had written this modest request, -and wrote suggesting that an action should be brought against them in -the courts for the release of the stock. The action was immediately -brought before Judge Donohue, to which Gould and Sage made no defense. -Dillon testified that the stock was worth only $200,000 or $300,000. -The order was given, the stock released, and the day after the -consolidation was effected which made the stock worth its face value, -or $3,000,000. - -Stoop & Rens, of Amsterdam, claiming to be holders of the bonds, -brought the charge against Mr. Gould and Mr. Sage that they had, -without consulting with the other bondholders, appropriated to -themselves the trust asset of $3,000,000. - -This revelation was made October 17, 1877, and an effort was made to -secure the indictment of Messrs. Sage and Gould. It was a matter which -at once attracted the widest interest. District Attorney Martine was -asked to send the complaints before the Grand Jury, but pending any -action on his part, Mr. Gould started on a trip abroad on his yacht -Atalanta. Then followed probably the longest rest and only complete -rest Jay Gould ever enjoyed from the time he took up and pushed through -the abandoned survey of Ulster county in 1852. - -He went first to Gibraltar, then to Marseilles, cruised along the -Mediterranean, going to Egypt and Italy. While he was absent the legal -war against him at home continued. His enemies in the Kansas Pacific -still clamored for his indictment; the commissioners appointed by -President Cleveland to investigate the affairs of the Pacific railroads -made a thundering report against the management of those corporations, -showing that they had received in aid from the government the sum of -$447,000,000. Congressman Anderson offered a resolution in the House of -Representatives recommending that suit be begun against Mr. Gould and -others to enforce the Thurman act. - -In March, 1888, the Grand Jury failed to indict, and on that very day -Mr. Gould was complacently strolling about the streets of Algiers. -Three weeks later Mr. Gould landed from his yacht at Jacksonville, -Fla., and in a very short time he was at his desk looking after his -great financial interests and manipulating the stock market. - -On his return he attacked his prosecutors with a virulence which he had -never displayed before, and filled the columns of the newspapers with -interviews. In one of these he declared that the attack upon him was -the result of a conspiracy and blackmail, and that the powers behind -the criminal proceedings were “a newspaper” (meaning the _Herald_), “a -cable company” (referring to the Mackey-Bennet Company), “and a woman.” -The latter was understood to be the wife of an officer of one of Mr. -Gould’s railroads who had brought suit for divorce. This bringing of a -woman into the case created a great sensation. A few days later Gould -made a bitter personal attack on James Gordon Bennet, of the _Herald_, -calling in question his personal and social character, and reciting -incidents unfit for publication. This was the first time in his life -that Gould appeared to be thoroughly “rattled;” the first time that -he let down the curtain of mystery with which he had so long covered -himself, and the first time that he broke that silence which was his -best weapon. - -This is a good place to quote from Gould’s testimony before the Pacific -Railroad Commission, as it gives an insight into his theory of railroad -operations. - -“I consider,” he said, “the past a good thing to judge a road by, but -the future more. I have been all my life dealing in railroads; that is, -since before I came of age. I always bought on the future; that’s how -I made my money. The bonds on the first road I bought were down to ten -cents. I built up the road and sold them for $125. That’s the reason -I went into the Kansas Pacific and the Union Pacific. But I saw the -Kansas Pacific was going to develop faster than the Union Pacific.” - -Mr. Gould’s railroad operations were entirely too numerous to be -followed in all their details, especially as enough has already been -given to indicate the character of his enterprises. But no life of -Mr. Gould would be complete without an account of his connection with -Wabash. On this road, however, he simply repeated, though to a less -degree, his tactics in Erie, and the result is a corporation almost -hopelessly burdened with enormous obligations. - -In the _North American Review_ of February, 1888, will be found a -full history of this unfortunate road. The writer says that “Mr. -Gould remains the leading figure in the chapter of Wabash as he was -of Erie.” There is, he says, a “relative disappearance of the special -forms of judicial usurpation and misconduct which lent such a lurid -aspect to Mr. Adams’ story, and in their place will be noted one -sweeping judicial act followed by two or three supplementary acts which -accomplished the designs of the actors with complete effectiveness.” -Gould gained control of the road in 1879 and became president in 1881. -The writer of the _Review_ article sums up the history of Wabash as -follows: - -“The Wabash system arose from the absorption and consolidation of -sixty-eight separate original corporations; when thus consolidated -the system owned and controlled in 1883 about 4,814 miles of railroad -in the six states of Ohio, Michigan, Indiana, Illinois, Missouri -and Iowa; its capital stock was increased between 1877 and 1883 -from $40,000,000 to $50,174,700; its funded or mortgaged debt was -increased during the same period from $20,311,570.60 to $76,394,075; -three quarterly ‘dividends’ were paid on the entire preferred -stock in 1881--the year after the issue of the general mortgage in -1880--amounting to $1,036,529; within two years and a half after -these ‘dividends’ the company made default on the interest of all -its mortgaged debt; in May, 1884, the entire property was, on the -application of the debtor company alone, secretly placed in the hands -of Humphreys and Tutt, two of its former directors and officers, -men without any special qualifications for railroad management, and -who had been part of the directorate which had brought the system -to bankruptcy; immediately after the appointment of Humphreys and -Tutt, the Circuit Court of the eastern district of Missouri directed -the issue of $2,300,000 of receiver’s obligations to ‘protect’ the -indorsements of Wabash notes by Gould, Dillon, Sage and Humphreys; the -same court, six days later, directed the further issue of $2,000,000 -of receivers’ certificates--made a first lien on all the Wabash -property--to pay so-called Wabash indebtedness, which by the terms of -its lease to the Iron Mountain, which had been, in turn, leased to the -Missouri Pacific, was the indebtedness of the Missouri Pacific; as the -result of two years and a half of this receivership, there was paid out -of the receivers’ earnings, on account of liabilities incurred prior -to the receivership, $3,260,519.23, leaving $500,000 still due; as -the grand result of the receivership of Humphreys and Tutt, interest -has accrued to the amount of $4,390,000, all due and unpaid, and of -receivers’ obligations, $3,200,000, a total during two years and a half -of $7,590,000, with $290,000 of cash in hand. The property being sold -to a purchasing committee, of which the chairman, Joy, was a former -Wabash director, and another member, Ashley, was the secretary of the -receivers, a demand was made of the prior mortgage bondholders to -fund into new Wabash bonds their past due interest and to reduce the -interest on their bonds for the future from 6 and 7 per cent. to 5 per -cent. Upon application of prior mortgage bondholders the United States -Circuit Court at Chicago removed Humphreys and Tutt for misconduct as -receivers and appointed a new and separate receiver for the Wabash -lines east of the Mississippi river.” - -This removal was upon order of Judge Gresham, who has made such a -high reputation as a judge who can be depended upon not to be easily -influenced in favor of corporations. This order was called at the time -“one of the bravest acts in the history of justice.” On rendering -decision he spoke in terms of great severity of the managers and the -Gould receivers, and appointed in place of the latter Judge Cooley, -who was afterward made railroad commissioner by President Cleveland. -In commenting on this decision, Gould defended himself by attacking -Gresham, who he declared was suffering from a severe attack of “the -presidential fever.” - -The Gould purchase of the Missouri Pacific railway has a refreshing -novelty in it on account of the manner in which it was bought. The road -was owned in 1880 by Commodore Garrison, who was not friendly to Mr. -Gould. The latter sent Russell Sage to find out how much the commodore -would take for his interest in the Missouri Pacific. The commodore -said that $2,000,000 would be about right. Sage offered $1,500,000 -and Garrison shook his head brusquely. The next day Sage returned and -offered to close the bargain at $2,000,000. “No,” said the commodore, -“the price has advanced to $2,800,000.” - -“Pooh, pooh!” said Sage, and he went back and reported to Mr. Gould. -The next day Gould went himself and told Garrison that he would -take his stock at $2,800,000. The commodore replied that the stock -had advanced in price to $3,800,000, and it would continue to go up -$1,000,000 a day. Gould closed the bargain on the spot, giving Garrison -his check for $3,800,000. The Missouri Pacific stock subsequently -became very much depressed in the stock market, and a great many -weak stockholders were obliged to let go. Gould was always ready to -buy. After a while he consolidated the Missouri Pacific with the -Iron Mountain and the International and Great Northern, and Missouri -Pacific stock went up rapidly. The Iron Mountain was a first-class -money-earning road. This consolidation gave Mr. Gould a southwestern -railroad system of more than 5,000 miles, which he subsequently -extended largely. - -Gould’s testimony in regard to this portion of his career, before the -Senate committee, was as follows: - -“The next great enterprise, if I may call it great, that I engaged in -was the Missouri Pacific. I bought it one day of Commodore Garrison, or -rather the control of it. I had a very short negotiation with him; he -gave me his price, just as we are talking here, and I said: ‘All right; -I will take it,’ and I gave him a check for it that day. At that time I -did not care about the money made; it was a mere plaything to see what -I could do. I had passed the point where I cared about the mere making -of money. It was more to show that I could make a combination and make -it a success. I took this road and began developing it, bringing in -other lines which should be tributary to it. I developed new parts of -the country--opened up coal mines, etc., and continued until, I think, -we have now 10,000 miles of road. - -“When I took the property it was earning $70,000 a week. I have -just got the gross earnings for the last month, and they amount to -$5,100,000, and we have accomplished that result by developing the -country; and while we have been doing this we have made the country -rich, developing coal mines and cattle-raising, as well as the -production of cotton. We have created this earning power by developing -the system. All this 10,000 miles is fully built. The roads pass -through the states of Ohio, Illinois, Michigan, Iowa, Missouri, Kansas, -Nebraska, Arkansas, Texas, Louisiana and the Indian Territory, and we -go into Mexico.” - -“Are there other railroad enterprises that you are connected with?” - -“I am director in various roads, but I put my whole strength into this -system. I don’t like to scatter around.” - -“What you do you do well, or try to?” - -“I certainly try to do all things well.” - -“What other business enterprises of the country have you now or -formerly had connection with?” - -“I am a director in the Chicago and Northwestern road, Chicago and Rock -Island, Delaware, Lackawanna and Western, New York and New England and -a good many other small roads.” - -Mr. Gould’s Southwestern system, of which he speaks in terms so -glowing, was composed of the Missouri Pacific, that was the main -stem, and grafted onto it was the Wabash, of which an account has -already been given; the Missouri, Kansas and Texas; the St. Louis and -Iron Mountain, and the Texas Pacific. The directors of all the roads -were substantially the same, Mr. Gould being the president, and his -son George, Russell Sage, A. L. Hopkins and others of his intimate -associates being the directors. The most striking feature about the -management of these roads is that while all the others were driven -into bankruptcy, or to the verge of it, the Missouri Pacific was made -a big dividend-paying property. Mr. Gould attributed this to the -comparatively small indebtedness of the Missouri Pacific, making -it, in his own language, “the snuggest property on the continent;” -but his enemies attributed the fact to another reason, namely, Mr. -Gould’s own management, by which he was alleged to have starved the -other properties to feed the Missouri Pacific. His holdings of the -latter’s stock were immense, while his pecuniary interest in the others -was comparatively small; indeed, he held but a few hundred shares of -Missouri, Kansas and Texas, though its president. His purpose was -evidently to swell the earnings of the Missouri Pacific to such an -extent that he could declare big dividends and sell his stock at high -figures. He succeeded in pushing the price up to 112 in May, 1887, -but it subsequently fell to 70¼ in March, 1888. The lack of public -confidence in Gould’s railroad methods is strikingly exhibited in -the fact that though Missouri Pacific paid 6 to 7 per cent. annual -dividends, Gould found it almost impossible to keep the price at par -except by the pegging process, while other equal dividend-payers -brought from 110 to 130 in the market without manipulation. The same -fact was also strikingly exhibited in Western Union, which paid -dividends, but sold at from 70 to 80. - -Finally the stockholders of the Missouri, Kansas and Texas became -indignant at the destruction of their property. Much of the stock -was held abroad and was only worth $13 to $15 per share of $100. -They engaged E. Ellery Anderson, the same who had been a member of -the Pacific Railroad Commission, and Simon Sterne, who had been -the counsel for the Hepburn Committee, to represent them, and in -connection with such Wall street men as W. L. Bull, shortly after -elected president of the Stock Exchange, they hurled the Gould -management from power. They publicly charged Mr. Gould with having -used the road simply as a feeder to the Missouri Pacific. Mr. Gould -succeeded, at least in part, with his plans in regard to Missouri -Pacific, and is understood to have marketed a large block of his -holdings in 1888. Shortly after that the road reduced its dividend and -had to borrow money to pay it. - -One of the most memorable events connected with Gould’s management of -the Missouri Pacific was the great Knights of Labor strike in 1885, -which disabled the road for a long time. An interesting feature of the -strike was a Sunday conference at Mr. Gould’s house between him and -General Master Workman Powderly, at which negotiations for a settlement -were entered into. The foremost representatives of capital and labor -thus met to settle vital questions at issue affecting the wealth of the -capitalists and the livelihood of the workingmen. Mr. Gould said to the -Senate Committee on Labor and Education: - -“I have been all my life a laborer or an employer of laborers. Strikes -come from various causes, but are principally brought about by the -poorest and, therefore, the dissatisfied element. The best workers -generally look forward to advancement in the ranks or save money enough -to go into business on their own account. Though there may be few -advanced positions to be filled, there is a large number of men trying -to get them. They get better pay here than in any other country, and -that is why they come here. My idea is that if capital and labor are -let alone they will mutually regulate each other. People who think -they can regulate all mankind and get wrong ideas which they believe -to be panaceas for every ill, cause much trouble to both employers and -employes by their interference.” - -To the Congressional Committee which investigated the Missouri Pacific -strike he said: “I am in favor of arbitration as an easy way of -settling differences between corporations and their employes.” - - - - -CHAPTER XI. - -GOULD AND THE TELEGRAPH MONOPOLY. - - -The manipulation of values and the methods of running the railroad -and telegraph systems of the United States effect more nearly the -personal interests of every individual than do any of the other great -enterprises of the country. It is for that reason that Jay Gould’s -actions in his railroad properties and his telegraph companies are such -an important factor of interest in the events of his life. - -Mr. Gould’s connection with the Western Union Telegraph Company began -in the early part of 1881. For a number of years, with the aid of the -American Union and the Atlantic and Pacific telegraph companies, which -he controlled, he was able to advance and depress the stock of the -Western Union at will. He was simply playing a great game with his -larger rival and waiting the chance when he would take possession and -unite all the lines. - -One example of Mr. Gould’s finesse in connection with the Western Union -will show his methods. By 1880 his American Union company had become a -constant menace to the other company. Rates to every competing point -had been cut, and his lines reached to the Pacific. Western Union -at one period was up to 116. The wires of the Western Union were -taken from the lines of the Union Pacific and other great railroad -systems controlled by Mr. Gould and those of the American Union were -substituted. The stock of the older corporation fell to 88. It was said -at the time that Mr. Gould was short 30,000 shares of Western Union, -and if that was so he made $840,000. - -But in 1881 Mr. Gould and his associates had practically secured -control of the Western Union. It was proposed to sell and transfer -the entire assets and property of the American Union and the American -and Pacific to the Western Union directors. Rufus Hatch, as a -stockholder of the American Union, obtained an injunction restraining -the consolidation, but on February 4, 1881, Judge Barrett refused to -continue the injunction, and by the time he had concluded his opinion -the papers were drawn up, the consolidation was ratified by the -directors of the three companies, and almost before the country knew it -there was one telegraph company where there had been three before. - -The stock of the Western Union Telegraph Company was at once “watered” -$40,000,000, or thirty-seven per cent. and Mr. Gould became the leading -spirit in that company, directing its affairs from his offices, which -were in that building. - -Nothing Mr. Gould ever did in his life so arrayed public sentiment -against him as this creation of the telegraphic monopoly. Eventually -the Western Union acquired the Baltimore and Ohio telegraph, which -Robert Garrett was glad to sell in order to get money to help the -Baltimore and Ohio railroad out of the difficulties into which it had -fallen. - -Repeated efforts were made by the stockholders of the American Union -to secure the interference of the attorney-generals of various states, -but the consolidation stood. In May, 1882, the Western Union secured -control of all the European cables, and no little comment was aroused -soon thereafter when it was charged that Mr. Gould was making an effort -to secure control of the New York Associated Press, or, at least, -of the news which it sent out. He was reputed to control at that -time three of the seven newspapers constituting the corporation, and -something of a sensation was caused by the charge. The Western Union’s -control of the cables became so absolute that the Mackay-Bennett cables -were laid and gave a competing service to Europe, which was afterward -largely extended to other parts of the world. - -In probably no other country of the world would one man be permitted to -control its telegraph system. But Gould became the absolute dictator -of the Western Union and successfully overcame every competitor that -arose. His record in Western Union, like that in his other properties, -is that of a tremendous increase of securities. Like the wicked -milkman, Gould always skimmed off the cream and poured water into -all his properties. The comic papers delighted to picture him with a -watering-pot in his hand. - -The mainspring of the Western Union is monopoly. Its condition is such -that it cannot exist with profit to its stockholders with a strong -competition in the field. Thus it is a grand aggregation of small -companies. It has absorbed and will probably continue to absorb every -rival in the field. Gould himself rode into control on the back of a -competing company. This was early in 1881. His version of the story is -given in his testimony to the Senate Committee on Labor and Education. - -“I am interested in the telegraph,” he told the committee, “for the -railroad and telegraph systems go hand in hand, as it were, integral -parts of a great civilization. I naturally became acquainted with the -telegraph business and gradually became interested in it. I thought -well of it as an investment, and I kept increasing my interests. When -the Union Pacific was built I had an interest in a company called the -Atlantic and Pacific, and I endeavored to make that a rival to the -Western Union. We extended it considerably, but found it rather uphill -work. We saw that our interest lay more with the Western Union. Through -that we could reach every part of the country, and through a small -company we could not; so we made an offer to sell to Western Union the -control of the Atlantic and Pacific. At that time a very dear friend of -mine was the manager, and I supposed that he would be made the manager -of the Western Union; but after the consolidation was perfected it was -not done, and I made up my mind that he should be at the head of as -good a company as I had taken him from. The friend was Gen. Eckert, -and for him I started another company, the American Union--and we -carried it forward until a proposition was made to merge it also into -the Western Union. As the stock of the latter went down, I bought a -large interest in it, and found that the only way out was to put the -two companies together. Gen. Eckert became general manager of the whole -system. Meantime, I bought so much of its property and its earning -power that I have kept increasing my interest. I thought it better to -let my income go into the things that I was in myself, and I have never -sold any of my interests, but have devoted my income to increasing -them. This is the whole history of it.” - -This beautiful account of Gould’s devotion to a friend, to the extent -of starting a telegraph company for him, does not, however, tell -the whole story. Gould’s policy in regard to the American Union was -twofold. It was to establish a competing company so strong that the -Western Union would have to absorb it, or else it would absorb the -Western Union. The result was that the Western Union did absorb the -American Union and Gould absorbed the Western Union! By the aid of -his rival company Gould kept hammering at the stock of the Western -Union, then controlled by Vanderbilt. By every art known to Wall street -speculation he forced the price down as low as he could. He sold the -stock “short” in large amounts, and in buying to cover bought enough -additional to place him in control. Then he consolidated the two -companies and 100,000 shares of American Union, which represented a -comparatively small outlay of capital on the part of Gould, went into -the Western Union at par and Gould’s immense holdings of Western Union -were thus acquired at a low figure. Of course, if he had attempted -to market his holdings in one lump his profits would have been wiped -out, but by carrying the load and letting the stock out by driblets -his profits were large, even if he sold under the market price, which -was nearly always below par. On Jan. 11, 1881, it became known in Wall -street that the consolidation was probable and the price of Western -Union rose from 78 to 103 and the next day to 114½. The consolidation -increased the capitalization of the Western Union to $80,000,000, -and this amount has increased later by the capitalization of scrip -dividends and by the acquisition of the Baltimore and Ohio telegraph. -After Gould became the master of the system the Mutual Union was -started as a rival concern. Gould soon gobbled it up and leased it to -the Western Union. Then Robert Garrett developed the wires owned by -the Baltimore and Ohio railroad into a competing telegraph system, -and under the management of Mr. Bates, who had formerly been with -Gould in American Union and Western Union, it became a big system, -stretching far west and south. But Garrett soon got into deep waters. -He had not the genius of his father, the famous John W. Garrett, and -a struggle with Gould was beyond his strength. The Baltimore and Ohio -railroad, nominally a Gibraltar of strength, was intrinsically weak. -Garrett entered into negotiations to sell a controlling interest in -the property. His desire was to place it in hands hostile to Gould, -but the latter used his power in the stock market to frustrate his -plans. Garrett contracted to deliver the control to Henry S. Ives, a -young speculator who was modeling his life after the Gould pattern, -but in the end Garrett was not able to deliver, nor was Ives able to -receive. The B. and O. system was dismembered, and the telegraph fell -into Gould’s hands. Gould had previously announced to the public that -“the Western Union does not intend to buy any more rival telegraph -companies,” but when he found he could get the B. and O. cheap, a -little declaration of that kind did not stand in the way. In fact it -was intended only to mask his intention to buy. - -Gould drew around him in Western Union a powerful body of men. His -board of directors included Norvin Green, Harrison Durkee, Alonzo B. -Cornell (who when governor of the state from 1880 to 1883 posed as -an anti-Gould and anti-monopoly governor), Cyrus W. Field, Robert L. -Kennedy, Hugh J. Jewett (whose testimony in regard to Erie has already -been quoted), J. Pierpont Morgan, of Drexel, Morgan & Co.; C. P. -Huntington, R. C. Clowry, Henry Weaver, Erastus Wiman, of R. G. Dun & -Co.; John Jacob Astor, Frank Work, George B. Roberts, president of the -Pennsylvania railroad, the leading railroad system of the world; George -D. Morgan, John Hoy, W. D. Bishop and J. W. Clendenin. The management, -however, was in the hands of an executive committee composed of Gould’s -immediate associates. The Western Union, besides its land system, owns -ocean cables and has a big interest in the telephone and stock “ticker” -systems, and Gould’s power as the master of this company can scarcely -be estimated. - -It is believed that Mr. Gould’s real ambition, so far as concerned -the Western Union, was to sell it to the government. But so long as -the country believed that Jay Gould desired to sell there could be no -public opinion aroused in favor of purchasing it. So Gould, if such was -his real desire, masked his purpose behind a display of indifference -or opposition, in the hope that if it was thought he did not wish to -sell the country would be all the more eager to buy. Thus he told the -Committee on Labor and Education: - -“I think the control by the government is contrary to our institutions. -The telegraph system, of all other business, wants to be managed by -skilled experts, while the government is founded on the idea that -the party in power shall control the patronage. If the government -controlled it the general managers’ heads would come off every four -years and you would not have any such efficient service as at present. -The very dividend of the Western Union is based upon doing business -well, keeping her customers and developing her business. If the -Democrats were in power there would be a Democratic telegraph; if the -Republicans came into power there would be a Republican telegraph, and -if the reformers came in I don’t know what there would be. (Laughter.) -I think it would be a mere political machine. I would be perfectly -willing, so far as I am concerned, to allow the government to try it, -to sell out our property, but it would be very unjust to take it away, -the property of our own citizens, and make it valueless.” - -“Have you any idea what the government ought to pay?” - -“I think that it ought to pay what it is worth and no more. I think -that the method that was provided in the law is a very just one, and -I would be perfectly willing to let the government take it on those -terms.” - -“What, in your opinion, is the Western Union property worth?” - -“Well, I judge of property myself by its net earning power; that is the -only rule I have been able to get. If you show me a property that is -paying no more than the taxes, I don’t want it. I want property that -earns money. You might say that there is water in Western Union, and -so there is. There is water in all this property along Broadway. This -whole island was once bought for a few strings of beads. But now you -will find this property valued by its earning power, by its rent power, -and that is the way to value a railroad or a telegraph. So it is worth -what it earns now, a capital that pays seven per cent.” - -“That would be $100,000,000?” - -“Yes, and it is worth much more than that, because there are a great -many assets.” - -[Illustration: GOULD FAINTING AT DIRECTORS’ MEETING IN RUSSELL SAGE’S -OFFICE.] - - - - -CHAPTER XII. - -GOULD AND THE MANHATTAN ELEVATED. - - -Jay Gould was not an originator of systems. Others with ideas secured -charters, began railroads and other schemes, and then, when money was -needed, Gould would step in and profit by their energies by purchase -at low figures. This was never more forcibly illustrated than by his -connection with the elevated railroad system of New York City. - -He had nothing to do with their construction. In fact, Gould’s name is -unidentified with any great public undertaking original with himself. -Other men planned and built. He grabbed. He did, it is true, start -a telegraph company, and put up poles and wires, but it was only as -a part of his plan to capture a system already constructed. So the -elevated roads--the measurable solution of the problem of rapid transit -in the metropolis and an inestimable boon to the city--are not due to -the foresight, pluck and energy of Gould. Other men were the pioneers, -but they were driven to the wall and forgotten, while he plucked the -fruits of their labors. - -Gould, naturally enough, came into control of this great system, which -carries 600,000 passengers every day, through a consolidation and the -“watering” of stock. There were three elevated roads--the Metropolitan -(formerly the “Gilbert,” named after its originator, Dr. Gilbert), of -which S. H. Kneeland was president; the second, the New York, of which -Cyrus W. Field was president and of which Samuel J. Tilden was once a -heavy stockholder, and the third, the Manhattan, of which Jay Gould -and Russell Sage were the owners. The Metropolitan and the New York -were bona-fide companies, actually owning railroads and rolling stock, -but the Manhattan was a “paper” company, having a nominal charter and -an organization, but not one inch of road. Yet these three companies -were consolidated on equal terms, and Gould, Sage and Field became the -owners. Later the control narrowed down to Gould and Sage. - -Sage, Field and Kneeland are remarkable characters in Wall street -history, and their names are intimately identified with Gould’s--Sage -and Field as associates, and Kneeland as an unpurchasable opponent. -Russell Sage is one of the richest men of his generation. He came -originally from Troy, where he ran a bank, and whose district he -represented in Congress, before the war, for one or two terms. Then -he entered Wall street. His great distinguishing trait was avarice. -He worshipped the mighty dollar. Money-getting was his passion--not -for the power and luxury which money can purchase, but for the mere -pleasure of acquisition. He lived, it is true, on Fifth avenue, and -gave somewhat to charity, but his habits were economical almost to the -point of penuriousness, and once a dollar got into his hands it did -not easily slip through them. It should be said of him, however, that -he was as careful of other people’s money as of his own. This was the -man who for many years was Gould’s most intimate business associate, a -director in all his companies and a partner in all his schemes. Gould -estimated Sage’s wealth at $50,000,000 and their combined capital was -thus enormous. Sage was chiefly a money-lender in Wall street. He -carried an immense amount of ready cash and was of incalculable aid -to Gould in all his undertakings. It is indeed one of the traditions -of the street that Sage saved Gould from ruin at a time when he was -hotly pressed by James R. Keene and other bear operators. Field was -a different kind of a man. He liked money but only as a means to an -end, and he had not the heart or mind to roll up a colossal fortune -in the way that Gould and Sage did, though he shared for a time in -their enterprises. But at one time he was worth millions. Field’s -passion was love of fame. His brothers all gained distinction in the -professions; he sought and obtained distinction in commercial life. -One of his brothers sat on the Supreme Bench of his country. Another -was a leader of the New York Bar. A third was a noted clergyman, -editor and traveler. Cyrus W. Field began his business life as a rag -merchant, but with indomitable pluck, energy and foresight he finally -succeeded in constructing the first Atlantic cable, and was honored -both in London and New York. Mr. Field sought almost equal distinction -in connection with the elevated railroads, whose great importance -he comprehended, and he made a bid for popularity by insisting on a -reduction of the fares from 10 to 5 cents against the wishes of Gould -and Sage. Sage first became acquainted with Gould in Troy. Field first -became identified with him in 1879, when he (Field) was president of -the Wabash railroad, though we have seen him as a guest at the famous -banquet given to President Grant on “Jim” Fisk’s steamboat in 1869. - -Mr. Gould turned his attention to the elevated railroads in this city -early in 1881. The Manhattan company was then in control of all the -lines as lessee, and to Mr. Gould’s keen vision that company presented -the appearance of being on the verge of financial disaster. The -Manhattan company had issued $13,000,000 of stock--pure water--and had -divided the same equally between the Metropolitan and the New York -companies. There was much criticism of the action of the Manhattan -corporation in issuing so large a quantity of stock which was wholly -unrepresented by property. The attorney-general of this state, Hamilton -Ward, obtained permission from Judge Donohue, May 18, 1881, to begin -a suit for the dissolution of the Manhattan company’s charter and the -appointment of a receiver. Other suits were begun about the same time -to restrain the Manhattan company from paying any dividends on its -stock. Of course these suits tended to depress Manhattan stock in the -stock market. - -Gould, Sage and Field agreed together to consolidate the three -elevated railroad companies. They were, however, met by the determined -opposition of President Kneeland, of the Metropolitan road. Nothing -could induce him to waver in his opposition. His associates in the -Metropolitan deserted him, and one by one they went over to Gould, but -he stood firm to the very last, and his persistency caused a celebrated -litigation, which proved so protracted and costly that Kneeland was -finally defeated, though his spirit was unsubdued. - -At that period Mr. Gould was the owner of the New York _World_, and for -several months in 1881 that newspaper was greatly exercised over the -bad management and “financial rottenness” of the Manhattan company. -Scarcely a day would pass that the _World_ did not contain an editorial -or a news paragraph attacking Manhattan. The stock kept dropping two, -three and five points at a time. With the beginning of July, 1887, -suits were pending against the three elevated railroad companies in all -of the state courts in which they could be brought. Mr. Gould became a -stockholder in the Metropolitan company on the 1st of that month, 100 -shares of stock having been transferred to him by Russell Sage. On July -8th, Mr. Gould, Mr. Connor, Mr. Navarro, and other friends of Mr. Gould -were elected directors of the Metropolitan company. On the same day -Attorney-General Ward entered an order discontinuing his suit against -the Manhattan company in this judicial district. He immediately, -however, applied to Judge Westbrook at Kingston, and obtained an order -appointing ex-Judge John F. Dillon and Albert L. Hopkins receivers of -the Manhattan company. A few days afterward Cyrus W. Field began a suit -to take the New York company’s roads out of the hands of the Manhattan -company, and later an application was made to the receivers to sue the -New York and Manhattan companies for the $13,000,000 of stock issued -without consideration. In the meantime the _World_ kept up an incessant -fire of criticism and denunciation of the Manhattan company. The price -of the stock naturally kept dropping until it got as low as 16. - -Early in October Mr. Gould went into the Manhattan company, and it was -proclaimed that he and his friends had obtained control. They held more -than 70,000 shares, nearly all of which they had been able to pick -up in the stock market at prices ranging from 20 to 16 cents on the -dollar. All of the timid original stockholders had been scared into -sacrificing their holdings by the confusing cloud of litigation and the -attacks of Mr. Gould’s newspaper. - -For a while after Mr. Gould got control of the Manhattan company there -was some show of fight between him and Cyrus W. Field, who represented -the stockholders of the New York company. Soon Gould, Field and Sage -came together and had an amicable understanding. An opinion was -obtained from Judge Westbrook, who held court in Jay Gould’s private -office, denying the application of the New York company to get its -road out of the hands of the Manhattan company, and in the latter -part of October the Gould-Field-Sage party entered into an agreement -in behalf of the three companies by which the Manhattan stockholders -were to receive only 6 per cent. dividend on their stock instead of 10 -per cent. Next came an order from Judge Westbrook taking the Manhattan -company out of the hands of the receivers, and that corporation, which -was absolutely under Gould’s control, proceeded to rivet its hold upon -the entire elevated railway system of this city. Immediately following -Judge Westbrook’s action the Manhattan stock went above 52, and on -November 9th, the day that Jay Gould was elected president of the -company, the stock was quoted at 55. - -The steps which Gould and his associates took to “freeze out” the -original stockholders of the Metropolitan company were exposed by the -New York _Times_ in a series of articles beginning in December, 1881, -and continuing until the Legislature ordered a special investigation -into the matter in April, 1882. Specific charges were made against -Hamilton Ward, as attorney general, and Justice Theodoric R. Westbrook -of the Supreme Court for their part in the elevated railroad -proceedings, and the Judiciary Committee of the Assembly spent several -weeks in taking testimony. Jay Gould and others were examined, and -letters and telegrams from Judge Westbrook to Gould’s lawyers were -produced in evidence, showing that Westbrook had a very friendly -understanding with Mr. Gould. It was also proved that on two occasions -Judge Westbrook exercised his judicial functions in Gould’s private -office. The committee was divided in its conclusions and Westbrook just -escaped impeachment. The effective lessons of the exposure and the -official investigation, however, put a stop to further “freeze-out” -tactics in dealing with the honest stockholders of the Metropolitan -Elevated Railroad Company. Those who had refused to be shaken off by -the bearish assaults on the property finally received satisfactory -compensation for their property from Mr. Gould and his associates. - -After obtaining full control of the elevated railroad system, Gould -and his associates voted to double the capital stock, making it -$26,000,000. In opposing the reduction of the fare from 10 cents to -5 cents, they argued that a 5 cent fare would not enable them to pay -dividends on their $26,000,000. A member of the Senate committee -suggested that they might reduce their capitalization. Mr. Field -became identified with all of Mr. Gould’s properties, but gave most -of his attention to the development of the elevated roads. In 1886 -he inaugurated the big bull movement in Manhattan stock. He “boomed” -the stock in every possible way, and bought immense quantities, and -publicly predicted that it would sell at 200. He succeeded in pushing -the price to 175. Like almost all artificial corners this movement -collapsed suddenly and Mr. Field was nearly buried in the ruins. -Many believed at the time that this collapse was precipitated by -Gould and Sage. It might have come about by other causes, but Gould -gave the tottering structure the push that leveled it to the ground. -There were many reasons, it was argued, for his action. First, Field -was no longer necessary, but on the contrary a hindrance to Gould -and Sage, and they therefore wanted to get rid of him; and second, -Field was conducting his bull movement independently of them. They -would profit by his fall, while if he succeeded the system might pass -into his hands. So in June, 1887, came the collapse. Mr. Field never -charged Gould with having precipitated it, and Gould himself claimed -that he came to the rescue of Field and saved him from bankruptcy. It -was, however, a remarkable deal and one by which Gould made himself -absolutely master of the elevated system, of which in 1891 he made -his eldest son vice-president, and another son a director. Field was -carrying an immense amount of stock on margins and was consequently a -heavy borrower of money. Gould and Sage were lenders. The bank reserves -were low. Gould and Sage called in their loans and Gould found it -impossible to negotiate loans and was thus obliged to throw over his -stock at a sacrifice. The price of Manhattan fell from 160 to 120 and -Gould purchased from Field 78,000 shares at prices understood to have -ranged from par to 120. Field saved his real estate and other property, -but his power in the street was gone. His later history was a tragedy. -In 1891, within a few weeks, he lost his wife and his son became a -disgraced bankrupt. A few months ago Field died, broken hearted. - - - - -CHAPTER XIII. - -THE LIFE OF A WALL STREET KING. - - -While it is true that the story of Jay Gould’s career in Wall street is -closely allied with his outside operations, a full account of which has -already been given, there still remain many other incidents connected -directly with his work on the street of unusual interest. Out of this -mass of material but two or three incidents of the most commanding -interest can be used. - -[Illustration: GOULD’S BIRTHPLACE, AND HIS PALACE ON THE HUDSON.] - -The most dramatic of these was the pommeling of Jay Gould by Major A. -A. Selover in August, 1877. Selover was a Californian, a six-footer, -a blond, muscular and vigorous. He first attained prominence in Wall -street when James R. Keene came East after his successful mining -operations in San Francisco, by which he achieved a fortune of -$8,000,000. Keene was a daring, almost foolhardy stock gambler. He -always played for big stakes and took enormous chances. His success -in San Francisco had been so great that he entered Wall street with -the idea of clearing all before him. He tackled Gould as the biggest -animal in the arena, but found to his sorrow that he had to deal with -a man more able than he, scarcely less daring but far more cautious. -In a few short years Keene’s wealth had dwindled away, and early in -1884 he failed, owing hundreds of thousands of dollars in the shape -of “puts,” “calls” and “straddles.” He dropped at the rate of about a -million dollars a year in Wall street, and no small proportion of this -found its way into the pockets of Gould. Yet Keene at one time was -thought to have outmatched Gould. Selover introduced Keene to Gould, -and acted as go-between for them in certain operations in which both -were interested. Early in 1877 the two men combined forces in one deal. -That is to say, they joined in one enterprise and fought each other -behind each other’s back. It was a case of diamond cut diamond. Keene -formed a big pool, and, beginning to fight Gould, finally went over to -him, being led into this change largely through the instrumentality -of Selover. Both Keene and Selover then operated on an understanding -with Gould, but soon found, as they charged, that Gould was secretly -selling them out. Gould and Keene had a stormy scene in Russell -Sage’s office, when the latter is said to have brandished a pistol -in Gould’s face. The deal had been mainly in Western Union, which -Gould did not then control, and Atlantic and Pacific, which he did -control. Gould’s double-dealing not only made Keene very mad, but made -Selover very desperate. He had placed reliance in Gould’s statements -and had suffered loss, and resolved upon revenge. Accordingly, on the -2d of August, 1877, while walking down Exchange place from Broadway, -Selover, meeting Gould walking up to the office of Belden & Co., No. -80 Broadway, of which he was then a partner, first engaged him in -what appeared to be an amicable conversation, but soon resulted in an -assault. Selover first struck Gould in the face and then dropped him -over an areaway at No. 65 Exchange place, which was seven or eight feet -deep. Mr. Gould was a good deal shaken up, but not seriously injured. -Selover left to go to his brokers and Gould proceeded to transact his -business as usual. He was assisted from the areaway, singularly enough, -by George Crouch, who has been identified with several incidents in -Gould’s career from the days of Erie and Black Friday to the Kansas -Pacific criminal prosecution, and who was one-third artist, one-third -newspaper man and one-third speculator. The Selover incident created -an immense sensation at the time, and the newspapers printed columns -about it. Selover became quite a hero, for while there was nothing very -courageous in his assault from a physical point of view, as he was more -than a match for timid Mr. Gould, yet to attack Gould was considered -by many an act of moral bravery. Selover declared that he had attacked -Gould because Gould had been guilty of fraud, lying and duplicity. -Gould, he said, had made arrangements with him to go short on Western -Union, and while he (Selover) was selling accordingly in good faith -he discovered that Gould was buying heavily. When he learned of this -he determined to punish him the first time he met him, and so he had -charged him with the fraud and slapped his face. “I attacked him on my -own account alone,” he added, “and regardless of the fact that he had -played Jim Keene the same trick. He is notoriously treacherous, and -this is not the first time he has been punished for the same offense.” -Poor Mr. Selover never amounted to very much in Wall street after this, -though he continued to be seen there daily. Gould, after this incident, -rarely appeared in the street unless accompanied by stalwart G. P. -Morosini. - -It is related that not long after this Keene came near getting his -revenge on Gould. The latter was putting all his energies into Union -Pacific, and carrying $22,000,000 of the stock, mostly in margins. -Keene organized an opposition party and nearly succeeded in breaking -Gould. Sage, however, came to the latter’s assistance with $2,000,000 -of much-needed cash, and Gould was saved. Keene’s purpose was to drive -Gould from the street forever, but he not only failed, but in a few -years he was himself a bankrupt, with Gould more powerful and richer -than ever. - -Rumors of Gould’s death and of his impending bankruptcy were not -infrequently circulated in Wall street. Rumors of death could be easily -disproved, but once, at least, the street was firmly convinced that -Gould was in financial difficulties, and Gould was obliged to exhibit -his wealth in order to prove that he was solvent. On March 13, 1882, -Gould exhibited to Sage, Field and Frank Work his box of securities, -to show that he was not only solid, but also had not been a seller of -stocks. He exhibited to the astonished vision of these associates -$23,000,000 of Western Union, $12,000,000 of Missouri Pacific, and -$19,000,000 of other stocks. Russell Sage said: “There is not another -man in America except Vanderbilt who could make such a display of stock -as that.” In 1884 Gould made another exhibition of his securities to -John T. Terry and others, and the display was even bigger than two -years before. - -The panic of 1884 is believed to have caused Mr. Gould much anxiety. -It came suddenly and without warning. There had been earlier in the -year, it is true, the collapse and resignation of Henry Villard, soon -followed by the failure of James R. Keene, but these disasters would -not have produced the financial earthquake that shook Wall street -in May. The failure of the Marine Bank and Grant & Ward, with the -revelations which followed of embezzlement on a scale never before -witnessed in the street, and the suspension on the memorable 13th -and 14th of the month of the Metropolitan Bank, George I. Seney and -seven or eight prominent banking-houses in this city and two banks -in Brooklyn and Newark, caused a panic like that of 1869 and 1873, -and from the depressing effects of which the street did not rally -for several years. Gould’s fortune melted like snow in the decline -of values which accompanied this panic. He came out of it probably -$20,000,000 poorer than when it began. But this loss, it is true, was -chiefly on paper. He was able to hold most of his securities, the value -of which afterward increased. But it is believed that he was at one -time very hotly pressed. His associate, Russell Sage, lost millions -in the decline by his operations in puts and calls. His office was -besieged by a mob clamorous for their profits. The old man reluctantly -paid up, and, badly scared and sick at heart, retired from the street -for a while, hoarding the $40,000,000 or $45,000,000 which was still -left to solace him. - -The men who chiefly profited by the great decline were Charles F. -Woerishoffer and Addison Cammack, the leaders of a small but powerful -bear party, which for several years had been preparing for this -depression, and by all the bear tactics, of which they were masters, -assisting in the downward movement. They were two men of mark. -Woerishoffer was the superior in mind and nerve. When he died in 1886, -while under forty years of age, he was worth, it is said, $8,000,000 to -$10,000,000, the result of his daring speculation. He was probably the -ablest stock speculator Wall street has ever seen, not excepting Gould, -whose principal success, it should be remembered, was in operations -outside of the street. Woerishoffer was by birth a German, and was the -son-in-law of Oswald Ottendorfer. Some of the most successful men in -Wall street, it may be remarked, are Germans or of German descent, as -for instance Villard, who after his collapse in 1884 had recovered in -1888 the ground he had lost; August Belmont, the banker, the Wormsers -and the Seligmans. Cammack was a man of much coarser nature than -Woerishoffer. He came originally from the South, and the Wall street -tradition was that he had been a slave-driver by profession. Gruff -in his manner, uncouth in his language, he yet had qualities as a -speculator which made him a power in the street. These two men, with -their following, are believed to have very nearly driven Gould to the -wall in 1884, and the story is that Gould might have gone down if -Cammack, of all men, had not relented. This story, like many others -told in Wall street, probably has a mixture of truth and fiction. In -1887 and 1888 Cammack was very evidently in alliance with Gould in -stock operations. - -Gould was not a member of the Stock Exchange, though he was often the -biggest customer the institution had. He was, however, almost always -in general or special partnership with some member of the Exchange and -thus obtained all the advantages of personal membership. After the -dissolution of the house of Smith, Gould & Martin, Gould became the -silent partner in the firm of William Belden & Co. This was succeeded -by the famous house of W. E. Connor & Co., which lasted about ten years -and which engineered some of Mr. Gould’s most successful deals. At -the time Mr. Gould retired from the firm, in 1886, it was composed of -himself as special partner and of Washington E. Connor, G. P. Morosini -and George J. Gould, the great operator’s eldest son. Mr. Connor was -the ideal broker and perhaps the most valuable lieutenant Mr. Gould -ever had. Not overscrupulous in carrying out the interests of his -master, he was faithful to the last minute to him. Tempting offers -were made to buy him off at various times, and he might have made -several fortunes in betraying the confidences of his chief, but it is -believed he was always true. Like Morosini, he allied his interest -to those of Gould and profited by the connection. When the firm -dissolved, Gould said of his partners: “Both are very rich men. Mr. -Connor is worth at least a million and Mr. Morosini two or three times -as much. The new firm will have my heartiest good will in whatever it -undertakes. Between Mr. Connor, Mr. Morosini and myself there has never -been an interruption of good feeling.” - -Mr. Connor was not only faithful, but quick and shrewd in his -judgments. Upon him rested nearly all the details of the best -operations of the house. These operations often required the assistance -of fifty or sixty brokers. Often these brokers did not know that they -were working for the same client. Sometimes they were ignorant even -of the fact that Gould was their client. The prime necessity in great -stock operations is to conceal one’s movements. Sometimes a part of the -brokers might be selling and a part might be buying. Gould and Connor -alone held the strings of the intricate operations. One of the first -great successful movements the house undertook was in Kansas Pacific -in 1879. The stock within a period of a few months shot up from 8 to -97, and the bonds from 10 to 110. Gould cleared nearly $10,000,000 by -this operation. The most brilliant feat accomplished by the house was -performed when Gould acquired Western Union. Mr. Gould for a long time, -as has been related, had been an uncompromising bear on the stock. The -whole street was aware that he and his firm were heavily short of the -stock. Suddenly the stock began to rush up. Gould was caught for once, -it was said. The truth was that Connor had engineered the movement and -Gould had not only bought in all his shorts but purchased enough stock -to give him control of the company. It was also this house that pushed -Western Union up from 78 to 91 and pushed Henry Smith and other bears -to cover their shorts at a heavy loss. It also handled the elevated -railway deals. - -While Gould and the Beldens were in partnership at No. 80 Broadway, -Connor had a small office in the rear. He was bright, sharp, sagacious, -reticent and nearly as well informed as Gould himself. Gould was -drawn to Connor naturally, and when the former fell out with the -Beldens he and Connor formed a co-partnership. Mr. Morosini for many -years had been Mr. Gould’s man Friday, and was invariably seen with -a large canvas bag following his employer to the safe deposit vaults -and protecting him against any repetition of the Selover attack. -Morosini went into the new firm, whose limitation only ran from year -to year. Connor and Morosini put in $100,000 each, and Gould, as -special partner, $250,000. George Gould was admitted in 1881, but -without paying in a cent. Although the nominal capital of the house at -all times has been $450,000, the actual capital, at times of great -activity on ’Change, ran up into the millions. - -But Mr. Connor was not Gould’s only broker. Charles J. Osborn was for -years one of Gould’s closest lieutenants and associates, and a more -dashing broker never stepped into the Stock Exchange. William Heath, -“the antelope of Wall street,” as he was called because of his long -legs and slender body, was also long a favorite with Gould. Heath was -a master at keeping secrets. None of his customers could ever learn -what his other customers were doing. His faithfulness, experience and -ability, however, availed him little in the end. He assisted Gould in -Black Friday and helped him in many a risky transaction. When Heath -failed with Henry N. Smith in 1885, Mr. Gould, though, with Morosini, -the principal creditor, did not come to his assistance. It was thought -that Gould would put him on his feet again, but he did not do so, and -Heath--alone, broken in spirit and in fortune--died shortly after in -Staten Island, but not until he had been lodged for a while in Ludlow -street jail, a prisoner for debt. - -On the dissolution of W. E. Conner & Co., Dec. 31, 1885, Mr. Gould -announced his permanent retirement from the street. That perhaps was -his intention (though he was as prolific in retirements as Charlotte -Cushman), but it was not long before his presence was again felt in the -Stock Exchange. - -Gould had other personal encounters besides the one with Major Selover. -Once, while lunching in Delmonico’s, a lawyer named Marrin addressed -him and asked him to accompany him to a private room. Mr. Gould -declined. Marrin struck him in the face, saying: “If you have no time -to see me, take that!” Mr. Gould quietly continued his lunch. Mr. -Marrin was summoned before a magistrate and compelled to give $500 -bonds. - -It was his habit to have duplicated reports from corporation officers -before the originals were presented. He was now and then cheated, but -not often. On one occasion a leading editorial severely animadverting -on him and Fisk was shown to him before any considerable part of the -paper’s edition had gone to press. He handed the party who brought him -the paper $10,000 in greenbacks and the edition appeared without the -disturbing criticism. His enemies were numerous, not that he hated any -one himself, but his operations necessarily involved men of small means -and often ruined them outright. - -Congressman John B. Alley is said to have remarked of him at -twenty-four: “I won’t go into anything with that lad. He is the only -person I ever saw who inspires me with fear.” Vanderbilt said, “His -face is a scoundrel’s.” He was often accused of “milking the street,” -“forcing quotations,” “washing,” and “covering his shorts,” but on the -other hand, when he agreed to enter a pool he acted squarely with his -associates unless he caught them at treachery, and then he quietly -waited for an opportunity to pay them off. He was a special partner -in several firms of brokers and carefully concealed from each his -operations with the others. - -[Illustration: JAY GOULD’S DEATHBED.] - - - - -CHAPTER XIV. - -THE KING IS DEAD. - - -Enormous wealth, power in the world of finance, every luxury that is at -the command of man except health, that Jay Gould possessed. On Friday -morning, December 3, 1892, at 9:15 o’clock, his wonderful career was -ended. It was a perfect December morning when the soul of the magnate -went to the undiscovered country, whither it had been trending for so -many months. He died, not as he had feared to die, by the hand of the -assassin or the dynamite crank, but as peacefully as any babe whose -lamp of life has dwindled to a spark ere it flickers and goes out. He -died surrounded by his children, in the plain, rear-extension bedroom, -with its window looking down upon the conservatory. It was the room -in which his wife died before him, and which he had since occupied -whenever he was in the city. It led to the little study where only -his most intimate friends were admitted. Here the last remnant of his -strength ebbed away, and even while an attendant turned him, he was -gone, and $100,000,000 were without a master. All the members of his -family were at his bedside. There were George J. Gould and his wife, -who was Edith Kingdon. There were Edwin Gould and the young woman, -Dr. Shrady’s daughter, to whom he was so lately married. There was -Miss Helen Miller Gould, named after her mother, who had taken her -mother’s place as head of her father’s household. There were Miss Anna -and Howard and Frank Gould, the younger children, and there, too, was -Dr. John P. Munn, Jay Gould’s medical adviser. Mr. Gould’s sons and -daughters had remained by his side until one o’clock the previous -morning. Then he fell asleep, and his children, worn out, went to bed. -They were around his bed again very early. There lay the Alexander of -speculation, the man who sought new financial worlds to conquer, who -founded possessions on ruins and wrecks--there lay that man, helpless, -weak as a baby. Always physically frail, the wasting disease with which -he had suffered had greatly emaciated him. His nose was pinched, his -face, half hidden by his grey-black beard, was almost as white as the -pillow on which it rested. His hands were like wax, and his languid -eyes, dimmed by the shadows that were falling across his brain, moved -lazily here and there. For although he had fallen into a stupor during -the night, Jay Gould was conscious in the morning. He knew he was about -to die. He knew the moment was near that he had fought to delay, fought -not through fear of death, but with a mighty pride that abhorred the -thought that even death should overthrow him. - -For two years or more the great financial manipulator had been battling -with the knowledge that in his system lurked the seeds of man’s most -insidious foe--consumption. He had phthisis pulmonaris in both lungs. -He battled with the knowledge, and he took no man into his confidence -besides his private physician, who became a sort of trained body -servant to him, and was always within easy call to watch him when -he had acute attacks, and his two elder sons, George J. Gould and -Edwin. A very master of silence himself, he imposed silence upon these -confidants, and it became their bounden duty to deceive all others as -to the giant which had laid its grip upon his life. - -And so the story went forth that Jay Gould was afflicted with nervous -dyspepsia merely, and every now and then he had a bilious attack which -“was not dangerous,” a cry which was repeated even when he had entered -the shadow of the dark valley. Up to within twelve hours of his death -the same cry was repeated. And even after death there were strenuous -efforts made for some inexplicable reason to shroud the cause in -mystery--a mystery which could have wrought no good to the dead man’s -peace and that of his surviving family. - -But it was not dyspepsia which sent him to the South of France, in the -Atalanta, under the watchful eye of his medical guardian, Dr. John P. -Munn, whose occupation is gone indeed. It was not dyspepsia which sent -him to Florida and Southern California, and El Paso, and the grand -resorts of Colorado, nor which caused him not less than two weeks ago -to plan a trip to Mexico--for he did not think he was going to die, -even then, and no man ever clung to life more fiercely than this frail -and silent embodiment of intellect. - -He knew the truth, but he bit his teeth upon it. He would not let men -into the secret, and sometimes put himself to actual pain in order to -conceal the truth, as when, only a few weeks ago, on October 26, he -appeared among the guests at Dr. Shrady’s house and took a quiet part -in the Gould-Shrady wedding, which had been somewhat hurried at his -request. - -This was his last appearance in public, unless you can count a visit or -two to his office in the Western Union building, to which he went from -his home in a closed carriage, and dodged in by way of the basement -office before any one could see him. No one who saw him at the wedding -would have suspected that he was so near death, and perhaps he would -not have been had not an injudicious ride, in company with Dr. Munn, on -the day before Thanksgiving, caused a cold which settled on his lungs, -brought on a hemorrhage and paved the way to death. - -The story of Mr. Gould’s last night on earth is one easily told. It was -as simple as any tale could be. He was prepared, and so were all the -members of his family. His going off was merely a question of time. All -understood how it would be. He had laid his earthly house in order, had -explained to his older sons exactly what his property was, how he had -made it, and what he should do to develop it if he lived. - -He had passed the distressing stage of his disease and he coughed -but little, and that weakly. The beard upon his face hid to some -extent the terrible emaciation, but the chalky pallor of the swarthy -skin was sharp and startling. He dozed at times, but never seemed to -lose consciousness. He did not suffer physically. There was nothing -to fight against now but the lassitude of utter exhaustion, and this -the doctors--Munn and Janeway--did with the most powerful stimulants, -thus prolonging life by a few hours, but doing no good that could be -measured. - -Several times during the night it was thought that he was going, and -the family were hastily summoned to the bedside. But he rallied each -time with wonderful vitality, and his will remained strong and under -control to the last. - -Those in the house besides the medical attendants and nurses were the -children--George J. Gould, who is already enthroned as his father’s -successor in business; Edwin, the second son; Helen Miller Gould, the -young heiress, who was the apple of her father’s eye; Howard, who is -just coming into manhood; the schoolgirl daughter Anna and the youthful -Frank, with Mrs. George Gould, Mrs. Edwin Gould and a lady intimately -connected with the family. - -Daylight brought an apparent renewal of the lease of life. It was not -much of a rally, but it was enough to give hope that the invalid would -struggle along through a great part of the day. Windows were raised and -curtains drawn in parts of the house, giving it an animated and lively -look which it had not worn when all the shades were down. - -Shortly after the night-watch of newspaper men had gone away young -Mrs. Gould appeared and drove away, in her carriage for a brief stay. -She said that her father-in-law was much the same as he had been and -perfectly conscious. An early caller was General Manager Hain, of the -“L” road system. He stayed but a moment, and when he resumed his trip -down town he little realized that the message of death, which was to be -followed by the draping of all the “L” road engines, would reach the -office almost as soon as he. - -The December sun came up and gilded the roof of the extension in which -the multi-millionaire lay gasping out the remnant of his life. It -caught in the glass of the conservatory and sent baffling lights into -the eyes of passers gazing curiously up at the windows which shrouded -the drama of life and death within. Audacious, it trickled in between -the shutters until a hand closed them tight, and it saw, what few have -seen, the great magician of Wall street bent low by a power greater -than his own. - -Just then, as if moved by some sympathetic force, all of the raised -shades were lowered and the great house assumed a somber aspect. This -was just after nine o’clock in the morning. A few moments later a -messenger boy came out of the house bearing a telephone message from -Dr. Munn to his wife, stating that Mr. Gould had died at a quarter past -nine o’clock. And thus the news that a king was dead trickled out -unwillingly, as it were, through the massive oaken doors that front his -palace. If Jay Gould’s secret could have been longer kept it doubtless -would have been, but Death sounds a tocsin which even a master of -silence cannot muffle. - -In all the spacious palace where this rich man died there was no -room more plain and simple than his own. There was nothing garish, -nothing to attract or astonish the eye, none of the rare and beautiful -bric-a-brac or articles of toilet which have made Miss Helen’s boudoir -famous in the social world. The furniture was massive, but simple; the -colors were subdued. Through the open door the railroad manipulator -could see his beloved study--a study, indeed, where he has pored with -such relentless zeal by day and night over law books and other weighty -tomes, planning the campaigns which made him a Napoleon in his line, -and which were so disastrous to those who opposed him. They were fading -now from his sight. He should plan no more. - -He indicated with a whisper and a gesture that he was glad his children -were all there. And then he showed a wish to change his position, and -as the attendant turned him over, the spark of his life went out as if -some breath had blown it. - -With the slightest echo of a rattle in his throat Jay Gould was dead. - -As soon as all was over George and Edwin took charge of matters and -began to prepare for the funeral. Messages were sent to Mrs. Palm, of -Camden, N. J., and Mrs. Harris, of Philadelphia, Mr. Gould’s sisters, -and to other friends, apprising them of the death; and a telephone -message summoned the undertaker and his assistants who had been waiting -the word from their headquarters in Forty-fourth street. Vice-President -Clark, of the Union Pacific road, who had been waiting for a week at -the Windsor to confer with his chief, dropped over to the hotel and -sent a number of messages. - -Then a huge cravat of black crape was placed upon the door-bell to warn -passersby that Death had entered at the door. One by one the flags on -the hotels of the city, on the Western Union and some other buildings -were raised to half mast. The “L” road engines were draped in black, -and soon the voices of the newsboys crying their extras spread the -tidings through the city. - -Persons loitered about the house where death was master and gazed up -curiously at the windows. There was but one Jay Gould, and in his going -out lay an infinity of food for curiosity and comment. - -During the day carriages continued to stop at the mansion and at the -house of Edwin Gould, 1 East Forty-seventh street. The Rev. Dr. Paxton -called again in the afternoon, and Chancellor MacCracken was among -those admitted. The members of the family were, however, entirely -inaccessible to any except their most intimate friends. Cards presented -at the house or at the houses of either of the sons, with a view to -seeing members of the family, met with the answer that they could not -be seen. - -In the afternoon, when the usual parade of carriages was moving up and -down the avenue, there was quite a jam in front of the Gould house. -Ladies would order their coachmen to stop and would peer inquisitively -out of their carriage windows. Pedestrians, too, would linger on the -corners for a few minutes to look at the house and comment with each -other. - -As might have been expected, the “cranks” were on hand. Whenever -they began to air their ideas too freely a policeman made them move -on. One of these cranks started to expound at length on the singular -coincidence that it was on the first Friday in December, one year ago, -that the bomb thrower Norcross blew up Russell Sage’s office, and that -on the first Friday of December Jay Gould had died. - -The Rev. Dr. Paxton, in speaking of Mr. Gould’s last hours, said: “He -had been unconscious for a number of hours, but as the end approached -consciousness returned. He opened his eyes, and they wandered around -the room where the family was gathered. He clearly recognized them, -and at his whispered request they went to his bedside. To each of them -in turn he whispered a few words of farewell. Vitality enough for -this was vouchsafed him. When he had spoken to the last one he became -unconscious again, and in a few minutes more he passed away.” - -The mystery as to the nature of the ailment which wrecked Mr. Gould’s -health was one of the features of his last illness. It may be stated as -a peculiar fact that his most trusted friends, and even the members of -his family, were not aware of the disease from which he was suffering -until it became evident that he could only a little longer withstand -its ravages. - -Mr. Gould was variously reported as a victim of neuralgia, of nervous -dyspepsia, and of severe bilious attacks, and the announcement that -what caused his death was consumption will be received with a great -deal of surprise. But the statement is true. - -It is further said, that the disease was of several years’ standing; -that Mr. Gould was aware that he had it, and that his instructions to -his physician, Dr. Munn, were that it should be kept a secret between -them as long as possible. When, therefore, inquiries, no matter by -whom, were made of Dr. Munn as to Mr. Gould’s ailment, he replied that -it was nervous dyspepsia, and truthfully, for all consumptives suffer -more or less from that complaint. - -To aid his physician in concealing all signs of the disease, the -somewhat extravagant assertion is made that Mr. Gould was able to -prevent himself, by an effort, from coughing. - -The secret was well kept, and until a couple of weeks ago Mr. Gould -is said to have had confidence that Dr. Munn’s efforts to delay the -progress of the disease would be attended with some measure of success, -and that he would be able to keep up and get around for some years. -But when he came down from Irvington some weeks ago he was not so -confident. A slight hemorrhage was followed by several more severe. - -Mr. Gould attended the wedding of his son and Miss Shrady, at Dr. -Shrady’s house on November 26, and that was the last time he went -out. He became so weak that he took to his plain oak bed in his plain -bedroom in the extension over the conservatory, where he died. - -Dr. John P. Munn, Mr. Gould’s physician, is probably the one man in the -world who knew Mr. Gould really well. He is about forty-five years old -and stoutly built. He wears long, black side whiskers. - -There is a story that Dr. Munn’s acquaintance with Mr. Gould was -the result of accident. He had come to this city to practice after -graduating from a medical school in the interior of the state, and put -up his sign near Mr. Gould’s house. One day Mr. Gould was taken ill, -and, his family physician not being at home, the young Dr. Munn was -called in. His treatment was quickly efficacious, and Mr. Gould, liking -him, a few months later made him a flattering offer to look after his -physical welfare all the time. The doctor agreed, and has not now, -therefore, a very extensive general practice. But as compensation for -that loss, he has seen many parts of the world from the bridge of Mr. -Gould’s yacht, and by following hints dropped from the lips of the -great manipulator he has acquired a beautiful home on West Fifty-eighth -street and a handsome income to keep it going. - -Mr. Gould had every confidence in Dr. Munn, and liked him personally, -and, by way of showing his esteem for him, he had him made, a few years -ago, a director in the Western Union Telegraph Company. - -[Illustration: FUNERAL OF JAY GOULD FROM HIS NEW YORK RESIDENCE.] - - - - -CHAPTER XV. - -GOULD LAID TO REST. - - -The first intention, after the death of Jay Gould, was that the -funeral services over his remains should be as public as the limited -accommodations of the house would permit. Ex-Judge John T. Dillon, -who had been one of the legal advisers of Mr. Gould, and Dr. Munn, -Mr. Gould’s personal and private physician, met nearly all of the -members of the family and agreed upon funeral arrangements with that -understanding. But it was soon discovered that the probable result of a -public funeral would be a blockade of Fifth avenue, and the intention -was consequently abandoned. - -The funeral services were held in the mansion where he had lived and -died, at four o’clock Monday afternoon, December 5, 1892. - -They were heard by his children, whom he had loved, and by many others -whom he had known well in life, and some tears fell as they were -uttered--not so many, perhaps, as have fallen at the funerals of other -men who have attained prominence--and on his coffin were lying flowers, -placed there by the hands of affection and of friendship, tokens of -sorrow, clearly sincere and deep, that those who gave them would see -him no more. - -Outside of the house Fifth avenue and Forty-seventh street were crowded -with inquisitive men and women, who were grievously disappointed -because they were not allowed to enter to look at the face of the dead -and to stare at the trappings of wealth. But the policemen who guarded -the entrance were inexorable, and there was nothing to do but to stand -on the pavement and gaze at those who entered and at the walls and -windows. - -In the early morning there were many callers at the house. Most of them -were from out of town, and had come to attend the funeral services. -They were met at the door by George Gould. Those who desired were -permitted to go upstairs and look at the face of the dead. The body -was in the rear bedroom on the second floor. It had not been disturbed -since it was first lifted from the bed where Mr. Gould died on Friday -morning. It was in a mahogany box surrounded by flowers and covered -with a black cloth. A servant stood at the head and lifted the cloth -for each visitor. None of the callers stayed more than a few minutes. -They went across the street to the Windsor Hotel to await the hour for -the holding of the services. - -About 10 o’clock Undertaker Main called with two assistants. A moment -later a wagon drove up to the Forty-seventh street basement entrance, -and the coffin was carried into the house and up to the room where the -body was. The wagon stood there an hour, and then the men who had gone -in with Undertaker Main carried out the mahogany case and pushed it -into the vehicle and drove away. A little later Undertaker Main came -out. He said the body had been carried down stairs and was in the -parlor, where it would lie while the services were held. While he was -talking two wagon loads of camp chairs arrived. One contained twelve -and the other fifteen dozen. They were carried into the house. Even at -this hour in the morning the people in the street showed a disposition -to stop, and had it been permitted there would have been a crowd in -front of the house that would have blocked the street from curb to curb. - -When it was announced that the funeral would be public Capt. Reilly -arranged to have one hundred policemen on the spot from early morning, -but the later decision to admit only the intimate friends of the family -made the captain change his plan. Until noon only four uniformed men -were on duty. One of these was in Forty-seventh street. Two were on the -east and one on the west side of Fifth avenue. They pushed along any -one who stopped more than a moment. Some were indignant, and talked -back at the officers. Their talk generally resulted in a gentle push -and an order to “Come now, hurry up. You can’t stand here.” About -noon, two policemen, Sergeant Kelly and Roundsman Bingham came, and -a few minutes later a dozen men from the Central office in citizen’s -dress. Four of them were detailed to do service inside the house, and -the others were to mix in the small crowd that was to be permitted -to gather. They had orders to get together at the very first word -that indicated a disturbance and squelch the offender on the spot. -As a reserve force in case anything should happen, Capt. Reilly had -twenty-five men in their rooms at the station-house ready to march on -the double quick. - -The first of the party who arrived at the house to attend the funeral -were three women in deep mourning, an elderly man and two young men. -They came about noon. They were Mr. Gould’s sisters, Mrs. Northrup and -Mrs. Palen, and Mrs. Northrup’s daughter and two sons, and Mr. Abraham -Gould, Mr. Jay Gould’s brother. They came from Philadelphia on an early -train, and went direct to the house. The police vigilance to prevent -the gathering of any crowd was kept up until 1 o’clock, when Capt. -Reilly arrived. He said that people might gather half a dozen deep on -the west side curb and above and below the house on the east side, but -wide passages must be kept open. Sergeant Kelly and Roundsman Bingham -were put on duty on the steps of the Gould house. Dr. Munn talked with -them a few moments in the vestibule. He told them they were to question -everybody and were not to let anybody pass who did not convince them of -his right to enter the house. They were also to keep the steps clear. -Five minutes after Capt. Reilly issued his order to let the little -crowd gather, every inch of space he had allotted to them was taken. -At first it was a crowd composed exclusively of poor people. They were -poorly dressed and many of them looked poorly fed. Curiosity only had -induced them to come. They had not hoped to get into the house. While -this crowd stood in the street there was a hurry and bustle in the -corridor of the Windsor Hotel. The men the poorer people came to see -were forming parties. The directors of the great railroad companies, -the Union Pacific, the Missouri Pacific, and the others, were getting -together. Frank Hain, Julien T. Davies, and Charles A. Gardener, -representing the Manhattan Elevated railroad, were among them. William -C. Whitney had charge of one party. - -Once, early in the afternoon, there was what appeared to be a concerted -rush for the steps. A number of persons who were evidently under the -impression that the public was to be admitted at 3 o’clock made a start -at that hour, and two or three hundred others followed. Up they rushed, -and, although the policemen shouted, “Get back! You can’t go in,” a few -did make their way into the house. They were quickly ejected, however, -and thereafter only individual efforts were made to get in. Some of -these were persisted in stubbornly, but without success. - -Oddly enough, women pleaded the hardest to be allowed to pass through -the big oak door, women of more than middle age, most of them, who -could give no better reason for wanting to see the face of the dead -railway king than that they “just wanted to see it.” Some declared -that they had come from great distances for that purpose alone. They -went away and returned to beg again. Yet all of them admitted finally -that they had never known Mr. Gould or any of the family. His children -glanced furtively out of the windows at the motley crowd and gave -thanks that the early intention to admit the public had been abandoned. - -The throngs began to gather as early as noon, and by 1 o’clock there -were 500 or 600 persons near the house. For some time the policemen -kept them on the west side of the street, where there was no sunshine -and where it was chilly. Yet they held their positions. - -In the house during the early afternoon Undertaker Main’s assistants -were busy arranging camp chairs in the two parlors, in the dining-room -in the rear of the house, and in the spacious hallway which runs from -the entrance to the dining-room. - -The body of Mr. Gould was taken from the temporary receptacle in which -it had been lying since Friday, and placed in the oak casket covered -with black broadcloth. At 3 o’clock it was carried down stairs and -placed with head toward the east on a standard in front of a broad -mirror on the south wall that reached from floor to ceiling. - -In the hallway, just back of the reception room, to the left of the -entrance and alongside the staircase, was placed a small organ, in -front of which the choir of Dr. Paxton’s church was to stand. - -Dr. John P. Munn, Mr. Gould’s physician, took up his position in the -vestibule soon after 3 o’clock. No one could enter unless he knew them -or unless they presented credentials which were not to be questioned. -Owing to the sagacity of Roundsman Bingham of the East Fifty-first -street police station and a number of central office detectives and -police men in citizen’s dress, not a great many reached the doctor whom -he had to turn away. - -One gray-haired woman, by exhibiting a card, got by the policeman and -reached Dr. Munn. To him she said, smiling agreeably, that she had no -wish to be intrusive, and then the door being open she sought to push -by him. Detective McCloskey, of the central office, who was attending -the door, closed it, and a policeman appeared just then and escorted -the woman down to the street. - -Although the services were not to begin until 4 o’clock the friends -began to come before 3. After passing the policemen at the entrance and -Dr. Munn, four detectives from police headquarters were encountered. -Detective Sergeant Heidelberg stood in the vestibule, Detective -Sergeant McCloskey in the inner hall and Detectives Frink and Titus -near the dining-room. As the guests were admitted they were shown -through the hall to the drawing-room. There they formed in line and -passed by the coffin slowly, so that each could get a view of the body, -and then passed into the second drawing-room or through the latter to -the hall or dining-room. Three ushers found seats for them. None of -the family was visible. George Gould had been down earlier in the day -and had received some callers, but he retired before the first of the -funeral guests arrived. He and the other members of the immediate -family, Abraham Gould, Mrs. Northrup and Mrs. Palen, and their -children, were gathered in the hall of the second story, where they -could hear the music and prayers without being seen by those below. -Some remoter relatives and their friends sat in the rear of the second -drawing-room. The dining-room was filled first, and here the directors -of the Union Pacific, the Manhattan Elevated and the Missouri Pacific -railroads and the Western Union Telegraph Company were seated. - -The shades were drawn in all the rooms and the electric lights were -turned on. At 3:30 o’clock the second drawing-room, the dining-room and -the hall were filled. Everybody sat silent during the half hour that -elapsed before the services began. The only man who spoke at all, and -he confined himself to whispers, was Russell Sage. Except the coffin, -the object that attracted the most attention was the oil portrait of -Jay Gould, which hung against the rear wall of the dining-room. All -in that room and many in the hall could see it, and their eyes were -turned toward it a large part of the time. It had been painted before -Mr. Gould’s illness, and looked utterly unlike the face in the coffin. -Instead of the expression of peace and indifference which marked the -latter, there shown out from the countenance of the portrait a look of -triumph. The face of the dead man was commonplace beside that in the -gilt frame. - -[Illustration: WHERE JAY GOULD RESTS.] - -The hour set for the beginning of the services, four o’clock, was -indicated to those seated in the parlors and halls and to the members -of the family who were on the second floor, first by four cheerful, -jingling strokes of a Swiss clock in the dining-room, and then by four -sonorous and vibrating sounds from the large clock in the rear parlor. - -Pastor John R. Paxton walked to the reception room and escorted the -Rev. Roderick Terry, pastor of the South Reformed church, which Mrs. -Jay Gould attended, and Chancellor MacCracken of the University of the -City of New York, to seats near the doorway of the parlor, about half -way down the hall. - -Dr. Paxton took his place in this doorway, facing those in the hall. At -his right, and at the head of those who sat in the hall, were Chauncey -M. Depew, who observed the ceiling contemplatively during the ceremony, -and Collis P. Huntington, who wore a skull cap and looked steadily and -intently at the hall carpet. - -The opening strains of the anthem, “There is a Land Immortal,” were -played by Organist and Musical Director P. A. Schnecker at 4:05 p. m., -and the singing was by Mrs. Charles Herbert Clarke, soprano, who took -the place of Mme. Clementine De Vere-Sapio, the regular choir soprano, -who was indisposed; Mrs. Carl Alves, contralto; Charles Herbert Clarke, -tenor, and Ericcson F. Bushnell, bass. Extemporaneous prayer, in which -only the Presbyterian service differs from that of the Episcopal -church, was offered by Dr. Paxton in these words: - - “Oh, eloquent, just and mighty Death, whom none couldst outwit thou - takest in thy toils; whom none could convince thou persuadeth; - whom none could overthrow thou subdueth--mighty Death! - - “Dire discouragement of human end, we bless God for our Christian - faith in which Jesus Christ hath abolished death. We bless Thee - that He plucked the stain from sin, that He robbed the grave of - its victory, and that He filled the heavens with the ministrations - of our heavenly hope in this splendor, where we hope to renew life - beyond the tomb. - - “We bless Thee, Heavenly Father, for Thy Son our Lord Jesus Christ, - for our knowledge that the grave is not a dungeon but a door - opening into other worlds and a new and higher life. We bless Thee - that the grave is not a terminus, the final resting place, the - be-all and end-all of man, but that it is only the stopping place, - an inn where we humble travelers sleep the long sweet sleep on our - way to the New Jerusalem. - - “May the Divine Spirit be present with us in these sad solemn - services, and may the light of the resurrection morn shine into - this darkened and bereaved house, and may comfort, that with which - God comforteth His own, touch with heavenly and hopeful grace the - hearts of our friends here, wounded and bleeding still for the loss - of him they all loved so well. Amen.” - -Dr. Paxton read that part of the service beginning, “I am the -resurrection and the life,” and the quartet sang the beautiful hymn of -Cardinal Newman, “Lead, Kindly Light, Amid the Encircling Gloom.” Then -the Rev. Mr. Terry read the second part of the burial service, at the -conclusion of which Chancellor MacCracken offered prayer as follows: - - “O, Father, Thou only art perfectly wise, kind, just, true and - good. Therefore it is that our hearts turn to Thee in this trying - hour. Strengthen us now. Quicken our hearts in faith, that we may - strive to be like Thee. Make us, as Thou hast commanded us to be, - steadfast and immovable, and always abounding in the work of the - Lord. - - “O Father, pity those that mourn here. Have special compassion on - the children of this home, whom Thou hast sorely grieved. Because - Thou hast taken from the children of this family both father and - mother, do Thou comfort them, Thou Divine Comforter. Grant unto - them faith, hope and love, Thy Divine special gifts. Grant unto - these bereaved ones the peace which this world, with all its - treasures, does not give.” - -“Nearer, My God, to Thee” was then sung, after which Dr. Paxton -announced that the services would be concluded at the grave in Woodlawn -cemetery the following day by Chancellor MacCracken. - -He invited those present to take a look at their departed friend, whose -soul had gone to its Maker. The line formed in the rear of the parlor -and marched slowly by the casket, the upper part of the cover of which -had been removed. - -Among those who attended the services were the following: - -Representing the Manhattan Elevated Company--Second Vice-President and -General Manager F. K. Hain, Secretary and Treasurer D. W. McWilliams, -Julien T. Davies and Charles A. Gardiner, the company’s counsel. - -Representing the Western Union Telegraph Company--President Norvin -Green, Vice-President and General Manager Thomas T. Eckert, -Vice-Presidents John Van Home and Robert C. Clowry, Treasurer R. H. -Rochester, and William B. Somerville, Superintendent of the Press -Service. - -Representing the Missouri Pacific Railroad Company--First -Vice-President and General Manager S. H. H. Clark, Assistant General -Manager George C. Smith, Secretary and Treasurer A. H. Calef, Local -Treasurer D. S. H. Smith, General Auditor C. G. Warner, General -Attorney for Western States B. P. Waggener, General Solicitor A. G. -Cochran, and John C. Wands. - -Representing the Union Pacific--Vice-President E. F. Atkins, Director -Frederick L. Ames, Secretary Alexander Miller, Treasurer James G. -Harris, and Controller Oliver W. Mink of Boston, and Director Joseph H. -Millard of Omaha. - -J. B. Houston, Vice-President of the Pacific Mail Steamship Company, -and Mrs. Houston; Austin Corbin, President of the Long Island Railroad -Company and a Western Union Director; S. W. Fordyce, President of the -St. Louis Southwestern Railway Company; John G. Moore, a Director of -the Missouri Pacific road; Henry B. Hyde, President of the Equitable -Life Assurance Society and a Union Pacific Director; George G. -Williams, President of the Chemical National Bank; J. Edward Simmons, -President of the Fourth National Bank; Edward H. Perkins, Jr., -President of the Importers’ and Traders’ National Bank; A. S. Frissell, -President of the Fifth Avenue National Bank; ex-Judge John F. Dillon; -W. B. Doddridge, a Director of the St. Louis Southwestern Railway; -Washington E. Connor, Gould’s former partner; Samuel Sloan, President -of the Delaware, Lackawanna and Western Railroad Company and a Director -of the Missouri Pacific and Western Union companies. - -Chauncey M. Depew, President, and H. Walter Webb, Third Vice-President, -of the New York Central and Hudson River Railroad; H. G. Marquand, -Collis P. Huntington, a Director of the Western Union Telegraph -Company; John Bigelow, Addison Cammack, Henry Villard, Henry Clews, -Simon Wormser, a Director of the Manhattan Elevated Company; Herbert -H. Dickson, Mr. Gould’s personal lawyer; J. Pierpont Morgan, a Western -Union Director; William H. Blackford, representative of Charles F. -Mayer, President of the Baltimore and Ohio Railroad; Whitelaw Reid, -John H. Inman, William D. Bishop, of New Haven, a Western Union -Director; Jesse Seligman, Mr. and Mrs. James Seligman, Mrs. Helman, Dr. -Virgil P. Gibney and mother, Dr. Jarrett Baldwin, Mrs. B. S. Clark, -ex-Senator and Mrs. John J. Kiernan, Judge Rufus B. Cowing, of the -Court of General Sessions; Dr. Matthew D. Field, Sidney Dillon Ripley, -William H. Kissam, J. Seaver Page, ex-Governor Alonzo B. Cornell, a -Western Union Director; J. H. Villard, Alexander Miller, Frank Kernan, -J. M. Morgan, James Gurnie, John D. Crimmins, J. C. Pierce, Gen. G. -M. Dodge, A. S. Hopkins, Gen. Louis Fitzgerald,. Ogden Mills, C. C. -Baldwin, F. K. Sturgis, Cornelius N. Bliss, Benjamin Brewster, William -Rockefeller, E. P. Vining, Maughan Carter, a relative of Mrs. Gould, -and Reid Northrup and Daniel Northrup, nephews of Mr. Gould. - -Every one of those who saw the face remarked afterward upon its extreme -naturalness. The beard had been cut rather shorter than Mr. Gould wore -it in life, and that and the displacement of the swarthiness of his -complexion by the death pallor were the only changes in his appearance. -The many rare flowers were placed surrounding the casket. The most -beautiful was a floral cross which Miss Helen Gould had ordered. It was -composed of pink orchids tied with a silk ribbon, and was placed on -top of the coffin. Next to it was a bunch of bride roses from Howard -Gould. A five-foot broken column of white roses, crowned by violets, -with the word “Father” in violets at the base, stood at the head of the -coffin on a table. It was from George Gould. Miss Annie Gould sent a -bunch of white orchids, Edwin Gould a wreath of lilies of the valley, -bride roses and orchids; Frank Gould a bunch of lilies of the valley -and orchids, and George Gould’s children an enormous pillow of orchids, -roses, lilies of the valley and violets, with the word “Grandpa” in the -center. This rested on the floor beneath the coffin. - -A handsome wreath of lilies of the valley, orchids and bride roses -was received from Mrs. Hall of 559 Fifth avenue. Mrs. Herbert sent a -bunch of lilies of the valley and roses. Gen. Thomas Eckert sent a -wreath of orchids and roses. Mrs. Dillon Brown sent a bunch of lilies -of the valley and orchids. J. B. Houston sent a full-rigged ship made -of lilies of the valley, roses and violets, with two flags flying and -this inscription in violets: “The Voyage Ended--Safe in Port.” The ship -was placed on a gilt cabinet in the northeast corner, and the other -pieces were disposed about the room. A large number of persons had -been expected, and arrangements had been made accordingly. Many camp -chairs had been piled up in the hall, the second drawing-room and the -dining-room. - -After all the visitors had gone, the members of the family, including -Mr. Gould’s brother, Abraham, and his sisters, Mrs. Palen and Mrs. -Northrup, took a last look at the features, and the casket was closed. - -Although it grew bitterly cold in the late afternoon, the crowd outside -did not diminish while the services were in progress. Occasionally the -onlookers crowded up to the gates so that the four uniformed policemen -had to get together and push them back. A picturesque feature, but -by no means a pleasant one, was the presence of several unwashed, -long-haired individuals, supposedly Anarchists, raggedly clothed and -with red cotton neckerchiefs, who stood muttering and cursing to -themselves and glaring fixedly upon the house. - -A wily speculator had obtained possession of some visiting cards of -Edwin Gould, and had sold them at a premium. Many of his customers -presented these to the policemen, and they seemed quite surprised and -chagrined when they were told they would not be recognized. - -One elderly woman, in a black bombazine dress, with an old-fashioned -bonnet, became extremely indignant because she was not allowed to enter -the mansion. She said she lived “up in the state,” and that she had -traveled sixty miles especially to attend the funeral of Jay Gould. -“It is a shame,” she cried, waving a rusty parasol and speaking to -the crowd in the street. “They’re rich enough. Why didn’t they hire a -church?” - -Another peculiarity about the sidewalk spectators was that nearly all -the men and boys were either German or Russian, while the greater part -of the women were also foreigners. The crowd climbed up the stoops of -the adjoining and neighboring residences until they were driven away -by servants with the aid of the police. Every time the great glass -doors opened at the Gould residence there was a craning of necks and a -rush for the stoop. There was absolutely nothing to be seen except the -undertaker’s assistants. - -One woman told a little circle around her that she had seen the casket, -and seemed very proud of her achievement and the distinction which it -conferred upon her in the eyes of her auditors. - -During all this time Fifth avenue was crowded with handsome equipages -of all kinds going to and from the park. Among those who drove by were -John Jacob Astor and his wife in a stylish drag. Neither the Anarchists -nor the other spectators recognized them, or there might have been, -judging from the character of the crowd, some unpleasant demonstration. -The police, however, were very alert, and kept a watchful eye upon -every movement of the crowd. - -The majority of the men who attended the funeral walked to and from the -house. When the services were over and the doors were opened, the first -to step out were H. Walter Webb and Chauncey M. Depew. Mr. Depew was, -of course, recognized, but Whitelaw Reid, who followed him, was not. As -the guests came out of the house the police still had some difficulty -in keeping the crowd back. A number of women fell into line, expecting -that they would be admitted to the house as soon as the invited guests -had departed. Finding that this was not the case, they lingered for -a few minutes and then slowly went their way. In fifteen minutes -the crowd disappeared entirely, and the avenue resumed its normal -appearance. - -The following morning the remains of Jay Gould were placed beside those -of his wife in the mausoleum in Woodlawn cemetery. They were placed in -a catacomb at just half past twelve. Barring the irreverent chatter -of the idle onlookers, nearly all of whom were women, no words were -uttered except by Chancellor MacCracken. A crowd gathered in front of -the Gould residence early this morning. Two policemen kept them back, -and they stood around and looked angry. At 9:30 the flowers were taken -to the cemetery. Soon after 10 o’clock the hearse and eight carriages -appeared. It was an extremely plain hearse and the carriages, except -George Gould’s smart brougham, were of the ordinary four-wheeled -funeral variety. The immediate members of the family entered them and -Undertaker Main, alone in a carriage, led the way up Fifth avenue to -the cemetery. After the brief services were over the mourners departed. - -The mausoleum in Woodlawn cemetery in which the dead multi-millionaire -is resting is more magnificent and costly than the homes of many people -whose money paid for it. The station on the New York and Harlem river -railroad is near the northeast corner of the cemetery. Central avenue -goes by the office of the superintendent and winds through the snowy -slopes for about half a mile. About fifty feet from this avenue rises a -mound crowned by a tiny Greek temple. That is Jay Gould’s tomb. - -The plot of ground is circular and contains 30,000 square feet. The -price of ground in such a select location is $2 per square foot, so the -space alone cost $60,000. - -Before the work began Mr. Gould made three stipulations about the -construction of the mausoleum. First, that it should be built as -strongly and as massively as possible; second, that it should not be -pretentiously large; third, that as great simplicity as possible in the -construction should be observed. Upon this last point Mr. Gould laid -the greatest stress. - -The mausoleum is built throughout of westerly granite. It is -thirty-three feet long, twenty-two feet wide and twenty feet high to -the apex of the roof. It is often said to be a copy of the Parthenon, -but that is not true. The Parthenon was a Doric structure; this is -Ionic. The technical name of the building would be a Greek hexastyle, -peripteral temple. It has six columns in front and eleven columns on -each side in single rows. In its proportions and many of its details -it is more like the old temple of Theseus, at Athens, than any ancient -building extant. - -Three rows of steps run up to the temple on all sides and form its -base. Between the columns and the walls of the temple is a considerable -space. Columns and walls are bare, without the faintest attempt at -ornamentation. - -In the center of the row of columns facing the south it looks as if a -column had been removed to make a broad passageway. Facing this opening -is the double door of the tomb. Each section of this door is eight -feet high and two feet wide, and weighs a ton. The doors are of heavy -bronze, and the lower part is paneled and ornamented on the outside -with two dragons’ heads, a big iron ring swinging in the mouth of each -dragon. The upper part of the doors is a fretwork of cherubs and vines, -through the opening of which the interior of the crypt can be seen. - -Peering through the interstices one may see the narrow hall lined with -polished Tennessee marbles. The pavement is of tesselated marble in -three shades, a creamy yellow, a pale pink and a pale violet. The body -of the floor is in the pale violet, with two brands of the pink and -yellow crossing it. - -The interior is 20 feet long, 7 feet wide and 13 feet high. Its roof -is a solid slab of granite, which weighs six tons. The border of the -ceiling is paneled with egg and dart moulding. The floor is one plain -marble slab. Along the sides of the interior are the catacombs. Of -these there are twenty, ten on each side, in double rows. The rows are -separated from each other by granite slabs. Each catacomb is 7½ feet -long and 2½ feet wide. Between the lower end of the catacombs and the -outside of the wall of the tomb is a thickness of 18 inches. The outer -part of this thickness is, of course, granite, but facing the interior -the walls are of light pink and cream-colored Tennessee marble, highly -polished. The light enters the crypt through a stained glass window in -the back. This window, which is 6 feet high and 3 feet wide, pictures a -choir of angels. - -The roof of the mausoleum consists of granite slabs 32 feet long, each -weighing 15 tons, and so placed together that they overlap, making the -roof waterproof. The whole temple weighs about 300 tons, and rests on a -solid concrete foundation 8 feet thick. - -The second rear catacomb from the bottom, on the left-hand side -entering the tomb, is that of Mrs. Gould, who died January 13, 1889, -and was interred January 16th. The letters “Emily Day Miller, wife -of Jay Gould,” with the dates of her birth and death, are in high -relief on the polished slab. Mrs. Gould’s body is the only one in the -mausoleum. - -The tomb was completed in 1883, and cost $50,000. Land and all it cost -$110,000. - - - - -CHAPTER XVI. - -PERSONAL CHARACTERISTICS OF JAY GOULD. - - -Much of the interest in the life and career of Mr. Gould is in regard -to his personal characteristics and qualifications, and much that is -to be learned from his life is to be gained from the study of the same -circumstances. The varying opinions regarding him are perhaps more -widely different than those concerning any other great financier. As -has been said, there are those who see in him all that was ideal in the -character of a powerful money monarch. There are more whose criticisms -can not be made too scathing, whose denunciations can not be made too -strong. In an impartial history, all such opinions must be represented. - -It is a relief to turn from the record of Gould’s public career to the -contemplation of his private life. As has already been said, in all his -domestic relations Gould was a model man. He had no habits but that of -hard work and home enjoyments. He did not use tobacco in any form. He -rarely, if ever, sipped a glass of wine. Social scandal never attached -to his name. He loved his home. When not in his office he was with his -family. He owned a box at the opera, but when he attended his family -always accompanied him. He belonged to no social clubs. He did not add -the excitement of the turf to the excitement of the Stock Exchange. -On his return from a journey his first questions were of the welfare -of his family. He made his home as beautiful as wealth, refinement -and purity could make it. He loved his children, the sweet discourse -of the fireside and the companionship of books and flowers. There -was no attempt at display, but everything he possessed was the best. -Neither he nor his wife had any ambition for society distinction. They -gave no great balls and rarely were they present at “society events.” -They had none of the vulgar traits of the parvenu or prejudices of -the aristocrat. When his son wished to marry an actress Mr. Gould -interposed no objection, and even approved the choice, declaring his -pleasure that his son had selected a respectable woman who was able -to earn her own living. Perhaps his devotion to his family was due in -part to the fact that his public career placed him apart from other men -and made him an object of fear and hatred. He was an exile from the -sympathies of his fellowmen. But he uttered no complaint, and found -in his family full solace for any loss of friendships he may have -incurred. The members of his family were his only intimate friends. - -Mr. Gould was never a robust person. He was below medium height, thin, -nervous and reticent. His hair, beard and eyes were jet black. He was -fastidious in dress, and never approached the gaucheries that marked -and marred his lieutenant, Fisk. Gould was all brain and nerve, Fisk -all drive and muscle. Although quiet, imperturbable and indisposed to -confidences, Mr. Gould’s expression was by no means unpleasant. On -the contrary he was, in a sense, companionable. He was extremely fond -of home comforts and never permitted business to interfere with his -two o’clock dinner or his afternoon drive. In manner he was kind and -gentle. Never averse to give an opinion, unless it interfered with -a plan, he was careful not to obtrude one. He was not accessible to -strangers for obvious reasons, but his family and friends testify to -the unvarying courtesy of his manner and the rare beauty of his temper. -He was always more or less troubled with sleeplessness and often paced -the floor, tearing letters or papers to bits, as he thought out schemes -for making money. Making money was his passion. He was not ostentatious -in living and spent comparatively little. He rarely put his name on -subscription papers and, justly or not, he did not enjoy the reputation -of liberality. He was often seen in the park with his wife, his son or -driver, and invariably looked straight ahead. He ate moderately and -never drank wine save at dinner. Now and then he attended the opera, -and in the days of Sweeny and Tweed would occasionally join them in -the recesses of a private box. Mr. Gould was not exactly a selfish -man. He was too intelligent to hate and too unsympathetic to love -very strongly. He produced the impression of extreme intellectuality; -indeed, leaving out the affectionate element, he was feminine in -nature, with marked intuitive perceptions. - -Slight of stature and frame, and feeble in body, with a high-strung, -nervous organization, a rebellious stomach and flesh-plagued with the -neuralgia--such was Mr. Gould as he appeared in the later years of -his life. His deceit and far-reaching were the result, largely, of -his frailty and timidity. In appearance what a meek, mild-looking man -he was! Strangers to whom he was pointed out would exclaim: “What, -that Jay Gould! Well, I never would have thought it.” About five feet -six inches in height and of slender figure, he was not an imposing -personage. His complexion was swarthy, his eyes dark and piercing; his -closely-trimmed whiskers black and streaked with gray; his forehead -dome-shaped and his hair rather thin--such was Jay Gould. His voice was -very low and mild. When a witness in courts and before committees, as -he frequently was, it was with the greatest difficulty that he could -be heard. But when once in close contact with him one soon came under -the spell of his intellect. His comprehension was wide, his intuition -wonderful, his judgment almost unerring. He was a close student when -once he took up a subject. He never ceased until he had thoroughly -mastered it in every detail. This was the secret of his success. Henry -Ward Beecher once defined genius as the power and willingness to work -long and hard, and under this definition Mr. Gould was a man of genius. -Though not by any means wholly bad, he was a dangerous man. His life -was a menace to his country. His successes were demoralizing to the -young. He looked like a premium on dishonesty, a reversal of the old -adage that “honesty is the best policy.” - -No just estimate of Mr. Gould can be formed without taking into -consideration the fact that he lived in a time and country in which -corruption in politics and business was widespread. The great mass of -the people were honest, but municipal government was the most corrupt -ever known. Bribery walked the streets of the national and state -capitals, and “jobs” were behind nearly every public undertaking. -It was a period, on the one hand, of glorious achievement and -extraordinary development, and, on the other hand, of venality, deceit -and dishonesty. The besetting temptation of the times was the desire to -get rich--enormously rich--suddenly. Mr. Gould may be said to have been -little if any worse than most of his contemporaries in business. His -triumphs were, for the most part, over men who would have ruined him if -he had not ruined them. - -In regard to himself, he once said when told that he was the most -unpopular man in the United States: - -“I never notice what is said about me. I am credited with things I -have never done and abused for them. It would be idle to attempt to -contradict newspaper talk and street rumors. As to enemies, any man -in my position is likely to have them. With me the bitterest enemies -have always proved to be men to whom I had rendered services. As a -general thing, I do my best to be on good terms with everybody I come -in contact with. I am not of a quarrelsome disposition. But, on the -other hand, I have the disadvantage of not being sociable. Wall street -men are fond of company and sport. A man makes $100,000 there and -immediately buys a yacht, begins to drive fast horses, and becomes a -sport generally. My tastes lie in a different direction. When business -hours are over I go home and spend the remainder of the day with my -wife, my children, and the books of my library. Every man has natural -inclinations of his own. Mine are domestic. They are not calculated to -make me particularly popular in Wall street, and I cannot help that.” - -The day after his death, his friends had only one word to say as to -the qualities in the dead man which commanded a tribute from them--his -ability, his foresight, his wonderful patience in the working out of -his aims, his fidelity to friends, his good faith with his business -associates and his generosity to subordinate workers. Mr. Morosini, -speaking of his dead friend and former employer, with whom he had been -associated for a longer period, and perhaps more continuously and in -some respects more intimately, than any other man in New York, said: - -“Mr. Gould was one of the most lovable men I ever knew. It was a -pleasure to serve him. He was very appreciative, and never imposed -a needless task upon any one. In the office he always took things -easily and coolly. There was never any hurry or confusion. In his -family he was the best of husbands, and I never knew a man who loved -his children with such intensity as he did. He seemed to worship them -all. He was a very companionable man, and there was a great deal of -humor in his disposition. While he was not given to telling stories or -cracking jokes himself, he enjoyed hearing others do so and would laugh -as heartily as the rest. He was very abstemious in his habits, but -was exceptionally fond of coffee. Now and then he would sip a little -wine, but he rarely took more than a spoonful at any time. My opinion -is that his system gave way under the great strain resulting from the -consciousness of his immense wealth. It was a tremendous care, and he -was always weighed down with the anxiety and excitement of protecting -his properties. - -“Mr. Gould was the most generous of men, and he made a great many other -men rich by his own generosity. I could give you hundreds of instances -where in return for some slight service to him he has started men in -the way of making fortunes. There is one which just comes to mind -while I am talking which is a good illustration. Once there was a man -out West who did some little work for Mr. Gould in a railroad matter -there. The man was of the ordinary type of a Westerner on the frontier. -Mr. Gould said to me: ‘I ought to do something for him; what would -you suggest?’ I replied, ‘Buy him a thousand shares of stock for a -rise.’ He said, ‘All right,’ and ordered the purchase of 1,000 shares -of Denver and Rio Grande. The stock was then about 29. We carried it -along until it reached a very high point and looked like going off, and -then we sold it. The profit was $65,000 and I paid that money, all of -it, sixty-five bills of $1,000 each, to that man myself. Mr. Gould had -ordered that transaction for that particular purpose. He took none of -the profit himself, but directed that the man should have it all. - -“There were many instances,” continued Mr. Morosini, “of just that -sort, and many in which he greatly helped men there in Wall street -from going down--men whom he was under no obligation to help, but he -assisted them under an impulse of generosity.” - -In regard to Mr. Gould’s business methods, Mr. Morosini said: “Of -course, he was very reserved. He never let the left hand know what -the right hand did. His motto was never to say ‘cat’ until you had -him in the bag. For instance, he asked me one day to call in about -$8,000,000--which we had loaned out. I followed his instructions; the -money was collected; he said nothing to anybody about why he had called -it in. I kept the money for nearly a month, when one day he told me -that I might loan it out again, as he had no more use for it; that he -had intended it for use in buying the Reading road, but the deal had -fallen through and therefore it might as well be drawing interest. That -was the first I knew of what he had in contemplation when he called -the money in. Then again, when he bought the Missouri Pacific, his -negotiations with Commodore Garrison were carried on for three months, -and it was only when he asked me to draw checks and told me to whom -they should be drawn that the whole thing came out.” - -Continuing, Mr. Morosini said: “Mr. Gould could enjoy immensely -anything funny or ludicrous. We used to have a small window in the -office through which I would talk to some of the unimportant callers, -and through which Mr. Gould would also talk to people whom it was not -necessary to bring into the inner room. One day a man came to the -window and said, ‘I want to see Mr. Gould.’ I told him he could not -see Mr. Gould unless he told me what he wanted. He replied, ‘I have -an invention here, and there’s millions to be made out of it.’ Mr. -Gould was in the next room, and he said, ‘Morosini, what is it the man -wants?’ and I told him, whereupon he got up and came to the window to -talk to the man. - -“When Mr. Gould appeared, the man put his hand under his coat as -if to pull something out. I saw it glisten, and thinking it was a -blunderbuss, I dodged down under the counter, and Mr. Gould seeing me -go down dropped down also. ‘Shoot high, you son of a gun,’ I yelled -out. Then the man laughed and said there was nothing to fear, and began -to explain the nature of his invention. We got up and looked at it, -and what do you think it was? He had a sort of a brass cylinder, and -he said it was a patent portable churn. It was to be filled with cream -in the morning when a man was starting away from home, and slung by a -strap over his shoulder under his coat. The motion of the body while -walking would keep the cream stirring, and then besides there was a -sort of piston with a handle on the top. Every now and then you were to -give that a jerk, so that by the time the man reached home at night he -could turn out on a plate for his wife a pound or two of fresh butter. - -“I said to the man when he had explained what the thing was, ‘I will -give you thirty days in the penitentiary,’ and you ought to see him -get out. It would have done you good to see Mr. Gould laugh over our -dropping down behind that counter at the sight of that portable churn.” - -Mr. Morosini illustrated Mr. Gould’s peculiar tactics in operations in -some particular stock in the Exchange with another anecdote. Said he: - -“At one time Mr. Gould was short on Pacific Mail, and he bought and -sold, bought and sold, bought and sold until the commissions paid -brokers amounted to about $36,000. Then the account was finally made up -and showed to the credit of Mr. Gould on the entire transaction the sum -of fourteen cents. A rumor was in circulation that Mr. Gould had made a -great deal of money in the stock. One afternoon, just about that time, -I was at Mr. Gould’s house when William H. Vanderbilt called to see him -about some matter of business. He congratulated Mr. Gould on having -made so much money on the stock. Mr. Gould turned to me and said, -‘Morosini, how much have we made on that deal in Pacific Mail?’ - -“I answered, ‘$140,000.’ - -“‘What,’ he exclaimed, and looked at me in a queer way. After Mr. -Vanderbilt had gone Mr. Gould said, ‘When I asked you what we had made -on that Pacific Mail transaction why did you say we had made $140,000?’ -I answered, ‘Did we want to disgrace ourselves by saying fourteen -cents? Why not let them know that we can make money as well as they -can?’ Mr. Gould was very much amused.” - -Those men who of late have been most intimately associated in business -with Mr. Gould, and those directly connected with the business -enterprises of which he was the commanding power, invariably speak -of him in the highest terms. The directors of the Manhattan Elevated -Railway, the Western Union Telegraph Company, the Missouri Pacific -System, and other great corporations in which Mr. Gould’s holdings -of stock were the controlling interests, have been lavish in the -compliments and admiration which they express. - -Newspapers throughout the country, in their editorials, seem to have -made every effort to be kind, even while expressing, most of them, -detestation for Mr. Gould’s methods. In the public press, however, he -has had few compliments except for his shrewdness and his family life, -while criticisms have been very severe on all of the prominent features -of his career. - -A great number of clergymen, too, have taken occasion to preach -sermons on the death of Mr. Gould, some of them very bitter in their -denunciation of him. A few have been charitable enough to object -entirely to the fact that he made little application of his wealth -toward benevolences, and have said little about his methods of -acquiring it. - -It is true, however, that the weight of the consensus of opinion has -been that Jay Gould’s life was that of a wrecker of fortunes and of -honor, that the good that he is done falls far short of balancing the -account, and that his loss will be felt less by the world at large than -would that of any other man of equal prominence. - - - - -CHAPTER XVII. - -THE FAMILY OF GOULD. - - -Jay Gould had no social ambition whatever. He was the most domestic of -men, and his affection and attention to his own immediate family was so -deep as to apparently leave no place for outside social influences. - -Mr. Gould was greatly stricken by the death of his wife, which occurred -January 13, 1889, after a long and painful illness. When she died there -were present besides her husband and Mr. and Mrs. George Gould, her -sons, Howard and Edwin; her daughters, Helen and Anna, and her sisters, -Mrs. Harris, Mrs. Noyes and Mrs. Dickinson. Mrs. Gould was practically -unknown in society, for the reason that she seldom cared to go into the -fashionable world. Her home was world enough for her, and she made it a -happy one. She was the idol of her children. Many stories are told of -the private charities of this modest woman. - -[Illustration: A FAMILY GROUP.] - -It was in the winter of 1862 that Jay Gould married Miss Helen D. -Miller, the daughter of Daniel G. Miller, of the produce and grocery -firm of Lee, Dater & Miller. Miss Miller was then twenty-three years -old and lived with her parents at 33 East Seventeenth street, now the -site of the _Century_ building. The house was one of those old-time -mansions, few of which still exist in New York. In this house they -lived for several years and here, on February 6, 1864, the first child, -George Jay Gould, was born. Here also, Edwin, the second, was born -two years later. Helen Gould, the oldest daughter, was born in 1870. -Howard was born a year later. Their other children are Anna, who is now -fifteen, and Frank, who is still a young boy. - -George Jay Gould, the eldest son, instead of going to college went -into business with his father, and has himself amassed a considerable -fortune. He lived with his father until his marriage to Miss Edith -Kingdon, once a member of the company at Daly’s theater, which took -place several years ago. He has three children, two boys, Kingdon and -Jay, and one little girl. After his marriage George bought the house, -No. 1 East Forty-seventh street, adjoining the rear of his father’s -home, from Amos Lawrence Hopkins. A passageway was built connecting the -house with the Fifth avenue mansion. George Jay Gould lived there until -about a month ago, when he moved to the house which he purchased from -Jacob H. Schiff, at Fifth avenue and Sixty-seventh street. Edwin Gould -then moved into the Forty-seventh street house. He is twenty-six years -old and a graduate of Columbia college in the class of ’88. - -Edwin Gould, the second son, was married October 27, 1892, to Miss -Sarah Cantine Shrady, step-daughter of Dr. George F. Shrady, of No. 8 -East Sixty-sixth street. The ceremony was performed by the Rev. Robert -Collyer, at the house of the bride’s father. The presents received by -the young couple were very costly and numerous. Mr. Gould sent besides -the diamond pendant which the bride wore at the ceremony, 200 pieces -of silver in a fine oak chest. After a short wedding trip Mr. and Mrs. -Gould took up their residence at No. 1 East Forty-seventh street. - -Edwin, though not so widely known as his brother, has an active -interest in many of his father’s enterprises. He is a director of the -Western Union Telegraph Company and of the Manhattan Elevated railroad. -He is very fond of athletic sports, and belongs to the New York -Athletic Club. He has been a member of Troop A, but resigned when he -was appointed Inspector of Rifle Practice. - -Miss Helen Miller Gould is about twenty-three years old. She is an -active church-worker and a member of Dr. Paxton’s church. To her -interest in missionary work has often been attributed the minister’s -meeting at Mr. Gould’s house and the millionaire’s gift of $10,000 for -missions. Howard Gould is twenty-one years old, Anna is a schoolgirl, -and the youngest, Frank, is thirteen years old. - -About a year ago cards were sent out by Mr. Jay Gould, which read -simply: - - - ............................................ - . . - . MR. JAY GOULD . - . and . - . MISS GOULD . - . At Home . - . Saturday, Dec. 26, from 3 until 7. . - . . - ............................................ - - -As many as 3,000 of these were sent out, and every person in the social -set was asked. This was nothing very unusual, as general invitations -are frequently extended by people of personal prominence in this way. -During the first couple of hours of the “at home” there were but few -callers at the Gould house, but later they came in a steady stream. - -The mothers of marriageable youths were very kindly disposed toward -Miss Gould. Whether she was to achieve a social success has never yet -been determined, for almost immediately after the coming out reception -she left town with her father, who went away for his health. Social -leaders say that with his great wealth Mr. Gould might easily have -arranged for his daughter’s marriage to a man of great social rank. But -Mr. Gould didn’t care to encourage the quest for his daughter’s hand on -the part of men of great social rank. This was evidenced by the hearty -consent he gave to the recent marriage of his son Edwin to Miss Shrady, -the adopted daughter of Dr. Shrady. - -When George J. Gould married Edith Kingdon, the actress, it was said -there was opposition to it on the part of Mr. and Mrs. Gould, but if -such was the case it never developed into anything definite. In fact -the Goulds made much of their daughter-in-law when they came to know -her. When Jay Gould became a grandfather he manifested the greatest -interest in the children of his son. There are three of them at the -present time. - -Edwin Gould, the second son, takes after his father more than the other -children in the matter of characteristics. He took a course at Columbia -and rowed in the freshmen crew. As to how the elder Gould regarded -the two boys, George and Edwin, an old financier, who knew Gould -intimately, said: - -“Either Jay Gould loves his sons George and Edwin to the point of -indiscretion, or he has weighed them up in his keen way and thinks -there’s a lot of sand in them.” - -Mr. and Mrs. Gould were a couple happily married in the fullest sense -of the term. Mr. Gould was exceedingly domestic in his tastes. He never -cared much about going into society. His wife died some years ago. - -Mrs. Gould had been fond of society, but gradually gave it up. - -The pleasures of Jay Gould’s life were simple and few. With vast wealth -at his command, he seldom sought recreation away from his immediate -home. To a certain extent money-getting seemed to be a pleasure to him. -In the many deals engineered by his master hand he felt the thrill of -a nervy gambler who stakes his money on the turn of a card. It was not -making money that worried him. It was keeping what he made and holding -his own in the thousand and one schemes concocted to get the better of -him. - -His life was a continual game of chance, and in this game for many -years he found his chief enjoyment in existence. It is not recorded -that in the earlier years of his career Mr. Gould ever sought any -physical relaxation in the way of sport or pastime. His whole mind, -heart and soul lay between Wall street and his uptown home. Finally, -however, money-making became an old story. Time and again he had -milked Wall street dry, and his fortune had rolled up into the tens of -millions. Then, observing an occasional smile on the faces of other -millionaires, and hearing the laughter of light hearts all about him, -he began to wonder if there were not other pleasures in the world -outside of cent per cent. and the dull, eternal rows of figures that -stood for stocks and bonds. - -So one day he turned his back on the dingy office that represented his -paradise and took a New York Central train for Irvington. Here he met -Mr. Merritt, and was driven to the residence of the latter, a mile -or so north of the old river town and close to the shore. Mr. Gould -was very quiet and very reserved, but his keen eye took in all the -possibilities of the place at a glance. When he returned to New York on -the evening train he had closed a bargain with Mr. Merritt, by which -the estate became his for a consideration of a quarter of a million of -dollars. - -A small army of builders and decorators and glaziers was employed, and -out of the general chaos of bush and bramble arose the minarets of a -modern palace, with wide, well-ordered grounds and every comfort one -could wish for. Mr. Gould seemed to take great pleasure in planning -the arrangements for his future country residence. For awhile all -but the general detail of his business was put in the background. -Every few days he would journey up to Irvington to see how matters -were progressing. It may be safely said that these were the first -leisure days of Mr. Gould’s life. His eyes grew brighter, his step -more buoyant, and he began to look upon these little excursions as a -pleasant diversion. - -Sometimes he would take his younger children with him, and their -unaffected happiness was another source of relaxation for the -care-worn millionaire. Previous to this time money-making had been Mr. -Gould’s exclusive thought. Thereafter it became to a certain degree -intermittent. - -Mr. Gould’s house on the Hudson, above Irvington, was called Lyndhurst. -It is a stone structure of Elizabethan architecture, situated on a -high green bluff overlooking the river and surrounded with a well-kept -park. The entrance to the park is about a mile from Irvington, and is -marked by two tall granite posts. A stone porter’s lodge is by the -gate. Passing into the grounds one sees on every side the marks of the -gardener’s care and the skill of the landscape gardener. There are -not too many trees, only enough, and they are so grouped that while -they make the house at the end of the driveway seem retired, they yet -afford vistas through which glimpses can be caught of the stone towers -and gables of the mansion. - -Beyond the limits of the park lie fruitful and well-cultivated -farmlands and orchards belonging to the Gould estate. One opening -among the trees shows a gray tower and slender minarets. These mark -the dog kennels. The driveway is broad and smooth, and winds over the -undulating surface of the park toward the house. Some of the trees -through which it runs are old oaks which have not been interfered with -in the general plan of the grounds, but have been brought into stranger -effect by the arrangement of the newer trees and the shrubbery. The -road descends a little before it reaches the house and passes through a -grove of evergreens. As one comes out of the dark grove, the beautiful -house bursts at once on the sight of the visitor. Trim lawns surround -it and beyond it the view is closed by the broad Hudson and the -palisades beyond. - -The central tower of the house rises high, bearing turrets at each of -its four corners. The house is built of greystone, which is shot with -bluish tints. It covers a large area and its many parts are grouped -together so as to give an appearance which is at once beautiful and -imposing. There are multitudes of graceful angles, mullioned windows, -turrets and spires, all in harmony, and forming a picture delightful -to look upon. Here and there are verandas with great windows opening -upon them, and now and then a stone balcony high up. The great double -doors of the main entrance are of stone even to the sashes of the -diamond-paned windows at their top. - -Inside the house there is a great hall in the center. On the right -from the main entrance is the dining-room and on the left a large -drawing-room. Everywhere are works of art, statuary and paintings. -The house has a multitude of rooms in it and is built on a generous -plan throughout. It is an ideal country home. Every window commands a -beautiful view, but those on the west front have the finest. The Hudson -can be seen for miles to the south and north. The palisades are seen -in a magnificent sweep across the river, and the town of Nyack looks -like a toy city on the further shore of the river. To the north are the -mountains of the Highlands. The lawn at the west of the house slopes -down to the edge of the bluff. Then there is a steep descent to the -railroad track, which is hidden from view by thickly planted trees and -shrubs growing on the declivity. A path leads down to a bridge over the -track and a short distance on the other side brings one to the little -wharf and boathouse. It was off this wharf that the Atalanta used to -lie when Mr. Gould was at Lyndhurst. - -The library in the house contains a splendid collection of books, which -Mr. Gould bought from a man who had spent many years and much money in -collecting them in all the markets of the world. - -He erected a short distance away one of the largest and most -handsomely equipped conservatories in the country. It covers nearly -four acres, and from a distance looks like the fabled palace of -Kubla Khan. Here there was another source of pleasure for the weary -financier. He employed Ferdinand Mangold, Mr. Merritt’s former -gardener, to take charge of the conservatory, and gave him carte -blanche to procure the rarest flowers and exotics from all over the -world. Mangold performed his work well. When the leaves grew yellow -around Lyndhurst the autumn following the conservatory contained the -finest palm garden on the Western hemisphere. - -There are over 250 varieties, from the size of a maidenhair fern to -great shadowy trees, thirty feet high and with leaves as wide as the -jib of a pilot boat. They range in value from $20 to $500; but what is -money to a millionaire in pursuit of the butterfly of pleasure. These -palms were brought from Africa, Central and South America, Samoa, the -Sandwich Islands, the heart of India and from beyond Trebizonde, for -the simple purpose of wooing Mr. Gould’s pale face into a smile. There -were _Viridifolium_, _Hyophorbe Americanlis_ and _Plectocomia Assamica_ -palms without number, and Mr. Gould knew every one of them by name. - -In another apartment was a wilderness of roses, pink and white, and -gold and Guelder, Burgundy and Austrian in an endless tangle of color -and a delirious, odorous atmosphere that would have enraptured the -soul of a lotus eater. No wonder that Mr. Gould abandoned care when -he entered the portals of his conservatory. He did not have many warm -personal friends, yet surely a man can not be altogether bad who is -a friend of the roses. There must be some good in the heart of a man -whose eyes grow tender as he bends over a lily. - -The conservatory became a hobby with Mr. Gould. Every morning after -breakfast he would pay a visit to the big glass house to wander for -an hour or so among the plants and flowers. While there he would seem -to forget everything but the green, tropical tangle about him. In the -evening, on his return from the city, he would again stroll through -the shadowy aisles of palm and vine, sometimes alone and at others -accompanied by the members of his family. - -Orchids were Mr. Gould’s especial hobby. In this department of his -conservatory he had nearly 8,000 orchid plants and over 150 varieties. -For some of these delicate, air-fed and angel-painted blossoms Mr. -Gould had paid $300--half the amount of a poor man’s wages for a year -of toil. In another apartment were nearly 2,000 azaleas, little bits -of sunset sky cut into the shape of bells. In the fernery were 600 -varieties of ferns, giving the entire place the appearance of a soft -green cloud hemmed in glass walls. Just the place for Titania and her -fairies. - -It is strange that this appreciation of pure and poetical things should -exist in the soul of a man of such financial grimness. But it was -doubtless in Mr. Gould’s nature before his life took on its acquired -thirst for gold. When that thirst was in a measure satiated he turned -again to his fundamental instincts and his great conservatory was the -result. - -Yet in the summer months Mr. Gould found much pleasure in his open-air -garden. It was a big affair, guiltless of weeds, yet it is doubtful if -Mr. Gould ever weeded his own potato patch or hoed his own turnips. -There were beds for cantaloupes and watermelon, cucumbers, peas, beans, -parsley, spinach, carrots, beets, lettuce and cauliflower, and Mr. -Gould knew just where to find everything. For a short time every day he -would walk through the garden, and doubtless dream of his old barefoot, -boyhood days when he looked after his mother’s garden in Delaware -county. He was a sort of intermittent farmer and seemed to find a -transitory pleasure in everything that pertained to a farm. There was -nothing in common, however, between Mr. Gould’s luxurious style of -farming and that of the everyday horny-handed knight of the pitchfork -and plow. - -His barnyards and meadows, situated some distance from the -conservatory, contained innumerable blooded stock. There were 50 cows, -25 horses, a span of oxen, 3 bulls, over a thousand chickens, 200 -ducks and 500 pigeons, besides half a dozen deer. This gave the entire -estate a farmlike aspect that was very pleasing to Mr. Gould. Over two -hundred and fifty tons of hay were harvested in the fields of Lyndhurst -every year. Mr. Gould took great pleasure in going out to the fields -on summer afternoons to lie under the trees and watch the haying. The -far-off drone of the flying sickle came to his brain as a soporific -balm, and the sight of the sun-worn toilers heaving away at the great, -slow wagons and the distant songs of the reapers lulled him to slumber. - -In Mr. Gould’s stables there were fifteen or twenty carriages and -conveyances of one kind or another, many of which were not used once -a year. To get rid of malaria, Mr. Gould filled in over one hundred -and twenty acres of swamp land. Mr. Merritt spent over $1,250,000 in -improving the place and Mr. Gould spent about $1,500,000 in the same -endeavor. - -Mr. Gould was a great lover of art, and was continually purchasing -statuary and paintings. Beyond the carriage archway leading to the -outer hall of the Gould castle is a bust of Lafayette; on the other -side is one of Washington. On the right of the inner hall is a bronze -Ethiopian woman and a painting by Perrault. There are many marble -busts and statues on onyx pedestals scattered throughout the house, -most of which were purchased by Mr. Gould. In the picture gallery -are innumerable rare paintings. Among them are “A Forest Scene,” -by Rousseau; “A River Scene,” by Ziem; “Evening Antique Dance,” by -Corot; “A Girl,” by Fleury; “A Storm on the Farm,” by Jacque; “Priest -and Cavalier,” by Meissonier, and “Le Loup dans la berguerie,” by -Loustaunau. - -Then there are Vernets, Simonettis, Kaemmerers, Constants, Bouguereaus -and Troyons innumerable, all of which were purchased, either directly -or indirectly, by Mr. Gould. This was in the earlier stages of his -home-making and before he had the fever of the farm and conservatory -upon him. - -Mr. Gould was not a great admirer of the drama, but he was rather fond -of opera, and this formed almost his only public diversion during the -winter months. He was seen very often at the Metropolitan during the -opera season with his daughter and daughter-in-law. - -In 1883 Mr. Gould built the big steam yacht Atalanta, and for several -years he was well known in yachting circles. He was elected a member of -the Eastern and Larchmont yacht clubs, and applied for membership in -the New York Yacht Club. The opposition to his name which was developed -in the club was so strong, however, that his friends withdrew his name. -This furnished a sensation at the time. George J. Gould, who had for -some time taken an active interest in yachting, and was a member of the -club, at once resigned. Mr. Gould at one time had an idea of making a -cruise around the world in the Atalanta, but abandoned it. - -Soon after the launching of the Atalanta Mr. Gould and others formed -the American Steam Yacht Club. The Atalanta developed remarkable speed -and is to-day the fastest large steam yacht afloat. Mr. Gould had her -built because he felt his health to be failing, and thought yachting -would be beneficial to him. Until within the last two years he spent -much time on board of her. She was used principally as a means of -transportation between Lyndhurst, his home on the Hudson, and the city, -though he made several extended cruises in her. It was not often that -Mr. Gould would allow the Atalanta to be raced, but on the occasions -when he did permit this she made records. - -Mr. Gould presented to the Larchmont club a cup, called the Gould Cup, -which is raced for every year. He also contributed largely to the -International Challenge Cup, offered by the American Yacht Club for -competition by steam yachts of different nations. He was always anxious -to see a challenge for this cup, but so far no nation has challenged, -owing to the great superiority in point of speed of the American steam -yachts. - -Mr. Gould seldom entertained people on board the Atalanta, but when he -did entertain, his hospitality was perfect. He had the happy faculty of -making his guests feel that the yacht was theirs and he himself was a -guest on board. There was an excellently well-selected library on the -yacht, and the craft was fitted throughout with quiet and substantial -elegance. - -The Atalanta is 243 feet long, 26½ feet beam and 15½ feet deep. She is -built of iron and was designed and constructed by W. Cramp & Son, of -Philadelphia. In June of 1886 she ran over the 85-knot course of the -American Yacht Club, from Milton Point to New London, in 4 hours, 34 -minutes and 57 seconds. - -The house at No. 579 Fifth avenue, where Jay Gould died, had been his -city home for several years. Before that he lived across the avenue, -almost directly opposite his present house, which before Mr. Gould -bought it was the home of George Opdyke, the banker, who enjoyed the -distinction of being one of the few Republican mayors which New York -has had. The house stands at the northeast corner of Fifth avenue and -Forty-seventh street. It is a square, brownstone house, about double -the width of the average house, with an extension in the rear. It is -three stories in height, with a mansard roof, which gives another -story. The main entrance is in the middle of the Fifth avenue front, -under a portico into a deep vestibule with handsomely carved oaken -doors and mosaic floor. The hall is fifty feet long. On the left of the -hall is a small reception room with one window facing Fifth avenue. On -the other side of the hall are the great drawing-rooms. The library -and the dining-room are in the rear. Mr. Gould had a fine collection -of standard books. The whole house was entirely redecorated only a -short time ago, and is everywhere a model of comfort, elegance and -good taste. It is filled with most exquisite tapestries and the finest -paintings. Mr. Gould had specimens of the work of Diaz, Rousseau, -Daubigny, Henner, Vibert, Rosa Bonheur, Voley, Jacquet, Schreyer, -Bouguereau, Dupre and Meyer von Bremen. - -Attached to the house is a conservatory, which is kept constantly -filled with the finest plants from the hot-houses in the country house -at Irvington. - -Mr. Gould lived quietly in his handsome house, and few people other -than intimate friends frequented it. He was devoted to his family and -spent nearly all of his time not occupied with his financial operations -with them. They in turn were devoted to him. Mrs. Gould for several -years before her death had been in delicate health, could not attend -church, and never took part in social pleasures. Her trouble was a -nervous one, and she could not endure excitement. Thus the house was -never given over to festivities to any extent. Sumptuous as it was, -it did not compare in size or display with that of other men whose -fortunes rivaled Mr. Gould’s, or, in fact, with the homes of many whose -wealth was not a tenth of his. All looked at the place with interest, -however, when it was pointed out as the retreat of the remarkable man -whose public life was so dramatic, and whose home life was so quiet and -so peaceful. - -Mr. Gould attended the recent horse show on three afternoons, but -these are the only occasions he ever publicly exhibited any particular -liking for horses. His city stable is one of a row on West Forty-fourth -street, between the Berkeley school building and Fifth avenue. It is a -two-story, twenty-foot front brick building trimmed with granite. It -is No. 14 West Forty-fourth street. It is a neatly arranged stable of -the old-fashioned, oak-trimmed pattern common in the neighborhood. Mr. -Gould kept only three pairs of horses at the time of his death, and -they are all quartered in the building. Four of the horses are cobby -bays, two with docked and two with banged tails. The other two are -long-tailed black roadsters, and the most valuable of the lot. None of -the horses would bring a fancy price if put up at auction, but they are -all of the good, plain sort that will stand plenty of work. - -Simplicity was the chief characteristic of the carriages used by Mr. -Gould. He always bought the best and paid the prices asked without -cavilling, but the first outlay was all the carriages ever cost him. -He was careless in the extreme regarding repairs or fresh trimmings, -seldom having any work done on any of his vehicles. Mr. Gould always -selected his carriages personally, and always bought from the same -firm. He was easy to suit, always telling just what he wanted and -taking the first carriage that met his ideas. - -James Downs is the Gould coachman. He has served the family for over -ten years. The carriages at the stable ready for use are a brougham, -landau, victoria and a hunting wagon. The last is gaudy in yellow -and black and is the newest of the vehicles. The others are plain in -coloring and are what driving people call old style. Jay Gould’s livery -is a dark green, and was worn on the usual occasions by both coachman -and footman. - -Two years ago Mrs. George Gould was in the habit of giving her -father-in-law early morning drives in Central Park, calling for him -daily in a neat trap of her own. With this exception he seldom drove -for pleasure in the city. At Irvington he was occasionally seen -driving on the roads near his residence. Until the purchase of his -yacht Mr. Gould drove to and from the railroad station daily, but since -then he has only taken drives at infrequent intervals. - -None of the Gould family is especially devoted to riding or driving. -George Gould keeps six carriage horses and a saddle horse at his -stable, No. 133 West Fifty-fifth street, but they are more for Mrs. -Gould’s use than his own. His coachman, William Willis, has eight -carriages and light traps to care for. Edwin Gould is a capital rider, -and until his promotion to a captaincy and the post of Inspector of -Rifle Practice in the Seventy-first Regiment, was an active member of -Troop A. He always rode a long-tailed gray thoroughbred, for which he -paid a high price. Edwin Gould was very proficient at wrestling on -horseback, and few of the cavalrymen could unseat him. The Misses Gould -drive daily during their stay at Irvington, using the family carriages -or else handling the reins in the hunting wagon or in a mail phaeton. - -[Illustration: George J. Gould] - - - - -CHAPTER XVIII. - -THE GREAT FORTUNE AND ITS INHERITORS. - - -Five days after the death of Jay Gould, the contents of his will, or -at least the substance of it, were made public in the press. The will -itself remained under lock and key in the safe of ex-Judge John F. -Dillon, counsel for the executors. - -“The original will,” said ex-Judge Dillon, in giving out the summary, -“is dated December 24, 1885, during the lifetime of Mr. Gould’s wife. -It made various provisions for her benefit which failed of effect by -reason of her death before the death of her husband. After and in -consequence of her death, Mr. Gould, on February 16, 1889, executed the -first codicil to his will, making such changes as became necessary. A -second and a third codicil were executed on November 21, 1892. - -“Taking the wills and codicils together the summary I give you is -accurate and complete.” - -The specific legacies came first. The three sisters, who with their -brother Abraham got $25,000 and an annuity of $2,000, were Mrs. Sarah -Northrup, Mrs. Anna G. Hough and Mrs. Elizabeth Palen. Mrs. Northrup -and her daughters received in addition the three lots of ground in -Camden, N. J., on which their dwelling is erected. The annuities were -to be paid in equal sums quarterly. - -To his daughter Helen M. Gould he gave in fee-simple absolute the house -in which he lived, No. 579 Fifth avenue, and all of the furniture, -books, paintings, statuary, silver plate and household contents -therein. He also gave to his daughter Helen, until his youngest child -shall arrive at age, the use of his residence at Irvington, commonly -called Lyndhurst, free of taxes, and of all the furniture, books, -paintings and household contents therein, and also the sum of $6,000 -per month. The will stated that this was done in the expectation that -his minor children, Anna and Frank J., as well as his son Howard, would -during the period provided for make their home with his daughter Helen. - -The $500,000 to his namesake and grandson, Jay Gould, son of George J. -Gould, was to be held in trust by George J. Gould, with authority to -apply the same to the support and education of the child, and to pay -one-quarter of the same to him at the age of twenty-five, one-quarter -at the age of thirty and the remaining half at thirty-five, with power -to pay the same at earlier periods in the discretion of his father. - -The bequest to his son George J. Gould was in substantially these words: - -“My beloved son, George J. Gould, having developed a remarkable -business ability, and having for twelve years devoted himself entirely -to my business, and during the past five years taken entire charge of -all my difficult interests, I hereby fix the value of his services at -$5,000,000, payable as follows: Five hundred thousand dollars in cash, -less the amount advanced by me for the purchase of a house for him on -Fifth avenue, New York City; $500,000 in Missouri Pacific 6 per cent. -mortgage bonds; $500,000 in St. Louis, Iron Mountain and Southern -railway company consolidated 5 per cent. bonds; $500,000 in Missouri -Pacific railway trust 5 per cent. bonds; 10,000 shares of Manhattan -railway stock; 10,000 shares of Western Union stock, and 10,000 shares -of Missouri Pacific stock--all to be taken and treated as worth par.” - -He appointed as executors and trustees of his will his sons George -J. Gould, Edwin Gould and Howard Gould, and his daughter Helen M. -Gould, with a provision that in case a vacancy should occur by death -or otherwise his son, Frank J. Gould was to be an executor and trustee -when he shall have reached the age of twenty-one years, and in case -of another vacancy he appointed his daughter Anna Gould, to fill such -vacancy when she shall have reached the age of twenty-one years, no -bonds to be required. - -George J. Gould and Helen M. Gould were appointed guardians of Anna -Gould and Frank J. Gould during their minority. - -All the rest of his estate was devised and bequeathed to the said -executors and trustees in trust; first, to divide the same into six -equal parts or shares and to hold and invest one of such shares for -each of his said children, George J. Gould, Edwin Gould, Howard Gould, -Frank J. Gould, Helen M. Gould and Anna Gould, with authority to -collect and receive, pay and apply the income thereof to each child -for life, with power to each to dispose of the same by will in favor of -issue, and in case of death without issue the share of the one so dying -to go to the surviving brothers and sisters and to the issue of any -deceased child, share and share alike, per stirpes, and not per capita. - -He directed that these trusts should be kept separate and distinct, and -that the accounts thereof should be kept separately; that no deduction -should be made by reason of any gifts or advancements heretofore made -to or for any of his children. - -In case of difference of opinion among the executors and trustees as to -holding and retaining securities or investments in managing the estate, -he directed that so long as there shall be five executors and trustees -the decision of four should be conclusive, and when four the decision -of three should be conclusive, with this further provision in the -codicil of November 21, 1892: - -“The better to protect and conserve the values of my properties, it is -my desire, and I so direct and provide, that the shares of any railway -or other incorporated companies at any time held by my executors and -trustees or my said trustees, shall always be voted by them or by -their proxies at all corporate meetings as a unit; and in case my said -executors and trustees or my said trustees do not concur as to how such -stock shall be voted, then, in view of the fact that my son George J. -Gould has for years had the management of my said properties, and -is familiar with them and with other like properties, I direct and -provide that in such event his judgment shall control, and he is hereby -authorized and empowered to vote the said shares in person or by proxy -in such manner as his judgment shall dictate.” - -There was the usual provision that the property of his daughters was -for their sole and separate use, free from any estate or control of -their husbands, and prohibiting all dispositions or changes by any of -the legatees by way of anticipation or otherwise. - -There was a provision that if any of his children should marry without -the consent of a majority of the executors and trustees, then the share -allotted to such child should be reduced one-half and the other half -of such share should be transferred to such persons as under the laws -of the state of New York would take the same if the testator had died -intestate. - -Who were the witnesses to the Gould will was not divulged by ex-Judge -Dillon; nor was it known who drew the will. Judge Dillon said that he -didn’t. It was thought probable that Gen. Swayne, who was formerly in -partnership with the judge, was the man, but he declined to say. There -were many who believed that Gould himself drew the will. A gentleman -who knew Mr. Gould very well said: - -“From what I know of Mr. Gould, however, I believe he drew it himself. -He was naturally a very secretive man, and any important undertaking -he kept to himself as much as possible. He was an able lawyer, and -certainly had sufficient knowledge to have made the will.” - -In spite of Mr. Gould’s great interests his executors found his affairs -in very trim shape. Something less than two years ago, in conversation -with Mr. Connor and Mr. Morosini, Mr. Gould remarked: - -“If I should die to-night my affairs are in such shape that my -executors could straighten everything out in less than forty-eight -hours after my death.” - -Many different estimates have been made of the amount of the fortune -of Jay Gould, but nothing has ever been told by him, nor did the will -reveal anything definite about it. Little difference does it make -whether it was $70,000,000 or $170,000,000, so long as it was the -greatest that ever one man accumulated in his lifetime. - -Mr. Gould never intended that anybody should know while he was living, -and he saw that his wishes were carried out in the matter. Sixty -millions is the figure most frequently mentioned, but generally as a -minimum, with a round hundred millions as the other limit. - -The New York _Tribune_ published the following estimate of his fortune -the morning after his death, and it is probably as accurate as any that -can be made without access to the will and the records themselves: - -“There is considerable divergence in the opinions of men who are -acquainted with Mr. Gould’s affairs as to the value of the estate which -will fall to his heirs. Although his investments have been known to -be in certain distinct lines, the reticence of Mr. Gould with regard -to many of his transactions has left a considerable margin between -maximum and minimum estimates. The character of many of the securities -which are his is also so unsettled that there is room for an extreme -range of estimates. First in the list of his investments are Western -Union and Manhattan, and there is little doubt that his holdings in -these two properties aggregate from $35,000,000 to $40,000,000 market -value. Of Missouri Pacific stock he may have held from $9,000,000 to -$11,000,000, and at current prices the value of his holdings of this -property probably reached $5,000,000. The Missouri Pacific system is so -complicated with bond issues that it is difficult even for his friends -to make a trustworthy guess as to his possessions of the various issues -of bonds. Counting in the St. Louis and Iron Mountain issues, the -different bonds of the various lines embraced in the Missouri Pacific -system and the consolidated issues on the system were held by Mr. Gould -to the extent of $20,000,000 or more in market value. He was credited -with holding about 220,000 shares of Western Union stock and something -like 110,000 shares of Manhattan. At the recent Stock Exchange figures -the value of these two interests may be conservatively placed at -$36,000,000. Mr. Gould’s investments in Wabash are large, but their -market worth is not commensurate with the par value. It would be a -generous estimate to place these holdings at a value of $10,000,000. -The same amount may represent Mr. Gould’s holdings of the securities -of the Texas and Pacific railway. It is difficult to say how largely -he was interested in Union Pacific securities, but he was a holder of -about $2,000,000 collateral trust notes of the Union Pacific, taken as -security for money advances. - -Mr. Gould was never known as a large investor in government bonds. He -is said, though, to have subscribed liberally to the debenture bonds -of the New York Central. A mass of miscellaneous securities must be -counted in the aggregate, including bonds of coal properties on the -line of the Missouri Pacific, southern ventures and a host of bonds and -stocks of varying degrees of worth and promise. - -The possessions of Mr. Gould at Irvington-on-the-Hudson and his home -in this city may be estimated at $1,000,000. Far more than this amount -has been invested in the two properties, the decorations of the -Fifth avenue house and the extensive conservatory alone commanding -the expenditure of important sums. It is also said that Mr. Gould -owns considerable real estate in the West. He is understood to have -considerable property in St. Louis which is productive, and he is -believed to have made purchases of improved property in Chicago after -the World’s Fair enterprise became assured of success. But much of his -real estate investments in Texas and other parts of the Southwest, and -in Southern California, is of a nature that does not yield immediate -returns. - -There is an agreement among several men who have means of estimating -Mr. Gould’s wealth that its aggregate value may be placed around -$100,000,000. A few estimates carry the value higher, while the -conservative view would put the sum at $80,000,000 or $90,000,000. -Russell Sage estimates his friend’s estate at $100,000,000, but -Washington E. Connor is said to have placed his estimate at a -considerably smaller figure. Another man, who has some knowledge of -Mr. Gould’s affairs, stated that Mr. Gould had an annual income of -$5,000,000, and that, considering the character of much of the property -held by Mr. Gould, it was safe to say that this income must be based -on a principal of $100,000,000 or more. Allowing for the difference -in estimates made by those persons who should know the facts, it is -believed that the following table presents to as close a degree as is -possible the current value of the Gould estate, and of its principal -constituents: - - _Holdings._ _Estimated - Value._ - - Western Union stock $22,000,000 - Manhattan stock 14,000,000 - Missouri Pacific stock 5,000,000 - Missouri Pacific system bonds 20,000,000 - Union Pacific stock 5,000,000 - Union Pacific bonds or notes 2,000,000 - Wabash stock 3,000,000 - Wabash bonds 5,000,000 - Texas and Pacific stock 5,000,000 - Texas and Pacific bonds 5,000,000 - Other securities 10,000,000 - Real estate, etc. 4,000,000 - ------------ - Total $100,000,000 - -Estimates made by other newspapers and other financiers, however, who -have equally good authorities on which to base their opinions, vary all -the way from $50,000,000 to $150,000,000. - -In calculating the amount of Mr. Gould’s estate, the first difficulty -met with lies in the fact that the records of his various companies -by no means tell the story of his holdings in their securities. More -even than many of his rivals, he has followed the policy of getting -along without going through the formality of letting the extent of his -ownership appear on the books of the companies. Besides, although he -reduced the number of his investments in the last few years--at least -the street says he did so--he had interests extending over a wide field. - -In only one branch of investments did Mr. Gould do very little, and -that was in real estate. His possessions of real property were far -smaller than those of many men not one-tenth as wealthy. He had his -place at Irvington which represents $750,000 to $1,000,000, and his -Fifth avenue house, worth $300,000 to $400,000. Several years ago he -bought real estate in St. Louis, which the Missouri Pacific expected -to use for headquarters. He paid $150,000 for this piece of property, -which is supposed to be worth three times that amount now. - -In spite of his policy of concentrating his holdings in his later -years, the list of companies in which Mr. Gould had large interests is -an imposing one. The principal corporations with which he was connected -at the last include the Missouri Pacific railroad, the St. Louis and -Iron Mountain, the International and Great Northern, Richmond Terminal, -the Texas Pacific, the Union Pacific, the Wabash, the St. Louis -Southwestern, the Manhattan Elevated road, the Pacific Mail Steamship -Company, and the Western Union Telegraph Company. - -Moreover, these corporations cover scores of smaller and subordinate -companies. Through Missouri Pacific Mr. Gould was interested in -something like fifty companies, and the other great systems would run -the list of the subordinate concerns up into the hundreds. As president -of the Union Pacific, Charles Francis Adams once testified that he did -not know how many presidencies he held, and Mr. Gould would have had an -excuse several times better than Mr. Adams possessed for not having at -his finger ends the number of concerns with which he was connected. At -his office yesterday nobody would venture to say what the list would -foot up. - -Mr. Gould was president of the Missouri Pacific, the Manhattan -Elevated, the Texas Pacific, the St. Louis and Iron Mountain, the -International and Great Northern, and a director in Richmond Terminal, -Western Union and Union Pacific. He is credited with a control of the -stock of the elevated road and a large amount of its bonds; with the -largest individual holding in Western Union stock, besides stocks and -bonds of its leased lines; a control of Missouri Pacific stock and -large amounts of its bonds, particularly the new issues of fives; -a large block of Wabash, the amount at times running up to 40,000 -shares; an interest in Union Pacific, including, perhaps, 1,000,000 of -the collateral trust bonds; heavy investments in the other lines known -as Gould properties; a block of New York and Northern securities, and a -control, with Russell Sage, of the St. Louis Southwestern. - -In Wall street the Gould will was accepted with something akin to a -vote of thanks. The satisfaction was in the fact that there was to -be no partition sale, with the flinging upon the market of such a -batch of easily affected stocks as Jay Gould had gathered. Even a -partition of the securities in the will would have made many owners and -possibly clashing of interests, where now one hand would cast the vote -represented by this enormous aggregate of stocks. This voting power -would rest absolutely and individually with George, and would make him -even more than his father a power in Wall street, at least for a time. - -Just now he is getting open praise even far beyond what appears in the -will of his great business ability. Some who know him by his acts say -that his weak points are his combative obstinacy and his penuriousness. -Stories upon stories are told of his miserly disposition, but they -come in large part from roysterers who looked upon the eldest son of -Gould as under some sort of obligation to put up the cash for their -festivities when out in company. George did nothing of the sort, but -had a sharp account for each penny expended, and kept himself posted in -prices of things from the highest to the lowest grade. He has not his -father’s slow-moving anger so easily set aside for future use when an -enemy was to be crushed. Instead, the young man is apt to flare up and -show his hand to his own detriment. - -When it comes to the fighting to hold his own against competition, -which will be necessary in all of the properties left by the -multi-millionaire, George will be met by a warfare entirely different -from that directed against Gould senior. The fact that all the -wealth, so to speak, is left in one pile, simplifies the war for its -possession, and from this time on George Gould will be one of the best -watched, best courted and very soon best hated men in America. His -training has been a very narrow one. He has not studied finance in any -large school. Schooling of any sort has been distasteful to him, and -while not positively illiterate, he has no taste for books even on -financial questions, but has a tremendous head for figures and loves -plenty of bustle in his work. - -The lack of charitable bequests did not surprise Wall street, but -there was no dearth of comment on the matrimonial board into which -four of the children have been constituted, with the two Mrs. Goulds -as _ex-officio_ advisory members. Bets were offered that if the other -members of the household attempted to act as a committee of the -whole when an engagement was to be announced, that in some shape the -intervention of lawyers would be necessary, and all the possibilities -of this selection of bride and bridegroom by arbitration were -discussed. As it stands now, an obstinate love match without family -consent may cost Howard or Frank, or Helen or Anna, a round sum of -nearly $8,000,000, and put this amount into the other five pockets of -the present sextette. - -The death of Jay Gould leaves vacant the presidency of the Missouri -Pacific railway, the Texas Pacific, the International and Great -Northern and Manhattan Railway Company. George J. Gould, it is -expected, will take his father’s place in these companies. In the -Western Union company no position becomes vacant, except that of a -membership of the board of directors. - -George Gould is president of the Pacific Mail Steamship Company. He -is first vice-president of the Manhattan railroad and of the Texas -Pacific. He is second vice-president of the Missouri Pacific and the -St. Louis and Iron Mountain road. He is a vice-president of the Western -Union Telegraph Company, and a member of the executive committee -of its board of directors. He is a director in the Wabash and the -International and Great Northern. He is a member of the Stock Exchange. - -Edwin Gould, the second son, has a shorter list of offices. He is -president of the St. Louis Southwestern, a director in Western Union -and a member of the executive committee, and a director in the -Manhattan and Missouri Pacific railroad companies. He has done some -very successful work in finance, and has been counted a very shrewd -operator from the beginning of his business career. The story is told -of him that when he was starting out in money-making his father -decided to test his mettle, and was highly delighted when the youth -came out of the conflict with flying colors. Edwin Gould is a member of -the Consolidated Exchange. - -Howard Gould, the third son, is getting his first experience in -business. He has been given as a start a seat in the directorate of the -International and Great Northern Railroad Company. - -Considerable interest attaches to the liability of the Gould estate for -the payment of an inheritance tax. While the terms of the will are of -course not known, and the question of public bequests is not settled, -the Wall street idea is that such bequests, if they exist, are not -likely to cut into the total to any appreciable extent. Under the laws -of 1892 property bequeathed to Mr. Gould’s children will be liable to a -tax of 1 per cent. Section 2 of chapter 399 says: - - “When the property or any beneficial interest therein passes, - by any such transfer, to or for the use of any father, mother, - husband, wife, child, brother, sister, wife or widow of a son, or - the husband of a daughter, or any child or children adopted as such - in conformity with the laws of this state, or to any person to whom - any such decedent, grantor, donor, or vendor for not less than ten - years prior to such transfer stood in the mutually-acknowledged - relation of a parent, or to any lineal descendant of such decedent - grantor, donor, or vendor born in lawful wedlock, such transfer - shall not be taxable under this act unless it is personal property - to the value of $10,000 or more, in which case it shall be taxable - under this act at the rate of 1 per centum upon the clear market - value of such property.” - -The next section makes the tax a lien upon the property until it is -paid. The tax is to be collected by the controller of the county. -Payment within six months gives a discount of 5 per cent.; if it is -not made in eighteen months a penalty of 10 per cent. is provided. The -controller’s fee is 5 per cent. on the first $50,000 of the tax, 3 per -cent. on the second $50,000, and 1 per cent. on the rest. The balance -of the tax is to be paid into the State Treasury. - -A tax of 1 per cent. on the estate should yield from $650,000 to -$1,000,000, according to which of the limits on the estimate approaches -the real valuation. The controller accordingly would figure on a fee of -from $8,000 to $13,000. - -It was said at the corporation counsel’s office that if it shall be -proved that Mr. Gould has left his personal property, especially his -railroad interests, in hands of trustees for a term of years, the -interest to go to his children, the fact that the estate is in the -hands of trustees cannot prevent the state from levying and collecting -the inheritance tax. - -Said one of the assistant corporation counsels: “If Mr. Gould could -by the terms of his will, by deed or gift or otherwise, make such a -disposition of his estate as to render the law in such cases nugatory, -his children and heirs to the remotest generation, when they came to -devise their property, could do the same thing, and the estate would -thus be perpetually barred of its rights. I believe that the personal -estate that Mr. Gould has left for the benefit of his children, no -matter in what form, is taxable at 1 per cent. All property left out -of lineal descent would be taxed at 5 per cent. on its clear market -value.” - -In spite of Jay Gould’s many millions, he was down on the tax-lists for -very modest amounts. He seems to have had as much ability in keeping -down his taxes as in piling up his millions. Despite his immense -accumulations, he paid taxes on only $500,000 in personal property. The -real estate on which he paid directly was confined to the Grand Opera -House, of which he was the owner, and to his home on Fifth avenue. At -one time he also paid the taxes on his son’s home on East Forty-seventh -street, but after that formally passed out of his possession he was, of -course, relieved from paying any further taxes on that property. - -Notwithstanding the very conservative estimate placed upon the value -of his personal holdings, Mr. Gould tried, a few years ago, to escape -paying any personal taxes at all in this city. He urged the familiar -plea of outside residence, and because he paid personal taxes in -Westchester county on his belongings at his country home at Irvington, -insisted that he was being unfairly treated in being compelled to pay -even on that supposititious $500,000 of personal property in this -city. He did not press the matter, however, and continued to allow his -personal property to be placed on the tax-list at $500,000. - -Commissioner Baker, of the tax department, said that it was impossible -to tell just what Mr. Gould’s holdings in real estate in New York -really amounted to. - -“Real estate,” Mr. Baker explained, “is entered on the books of the -tax department by number only. The only way to get any idea there as -to the ownership of a piece of property is to see who paid the taxes -on it. According to this test, the real estate on which Mr. Gould paid -taxes in New York is confined to his residence. The Manhattan Railroad -Company is a large holder of real estate, but the company pays its own -taxes, of course, and the only place Mr. Gould’s name appears on the -tax department books is in relation to his residence and the admitted -$500,000 of personal property.” - -Ex-Tax Commissioner Coleman added the opera house property to the list -that Mr. Gould paid on personally. - -“The peculiarity of the matter,” said Mr. Coleman, “is that Gould was -never really in business in New York City. His wealth was very largely -in stocks that had no particular value by themselves and that were not -even on the market. He made his money by taking hold of almost bankrupt -companies, getting control of the common stock that had no particular -value beyond its voting power, and then by manipulating things to his -own interest. - -“Besides, his various railroad stocks, like the Union Pacific, Wabash, -Texas and Kansas Pacific, were not assessable. The bonds that were -assessable were generally those of roads that had been reorganized -and reorganized till any estimate of value became a pure matter of -guesswork. Then he could come in and swear down the valuations.” - -The tax commissioners are compelled to take any man’s affidavit as to -the value of his personal property, and, as Commissioner Baker put -it, “Where it’s a question of dollars and cents, we find every man’s -conscience becomes rather pliable.” - -Mr. Gould seems not to have cared to pass as an exception to so -well-established a rule, and hence the modest estimate he placed on his -earthly possessions for the purposes of the tax collector. As a result -of this trustful feature of the assessment laws, $25,000 a year is said -to be an ample estimate for the entire amount of annual taxes Mr. Gould -paid on his variously estimated millions. - - - - -CHAPTER XIX. - -JAY GOULD’S RELATIONS WITH THE PUBLIC. - - -There are interesting features of the life of Jay Gould regarding his -relations with the public, the church, the press and the people whom he -met. - -Jay Gould was not what is called a religious man. He was a pewholder -in the Presbyterian church at Irvington and in the Rev. Dr. Paxton’s -church on West Forty-second street, but not a communicant. If he -ever expressed any religious views it was to the Rev. Dr. Paxton. -Certainly he did not to the Rev. Dr. Henry M. MacCracken, chancellor -of the University, nor to the Rev. Roderick Terry, with whom he was on -intimate terms of friendship. Dr. Terry said: - -“There was no pretense about Mr. Gould. He never made any public -profession of Christianity that I know of. On the subject of religion, -as on so many others, he was extremely reticent, unless he unbosomed -himself to his pastor, Dr. Paxton. He certainly never talked with me -about his feelings on the subject of religion, though the opportunity -offered more than once.” - -[Illustration: JAY GOULD’S PRIVATE CAR AND HIS YACHT “ATALANTA.”] - -Mr. Gould’s wife was a member of the South Reformed church for many -years, but afterward became a Presbyterian. The millionaire of late -years had been a frequent attendant at the Rev. Dr. Paxton’s church -and at the Presbyterian church at Irvington-on-the-Hudson, near his -country place. An old friend of the family said that when a very young -man Jay Gould became converted at a Methodist revival meeting. This -gentleman said: - -“When Jay Gould was a young man he was converted in a Methodist church -at Roxbury, Delaware county, N. Y. The Rev. Mr. Dutcher, father of Rev. -E. C. Dutcher, now pastor of the Methodist Episcopal church in Nyack, -Newark conference, was pastor in charge of the Roxbury church. The -elder Mr. Dutcher was holding a series of revival meetings. The little -Delaware county church was crowded night after night. - -“At one of the meetings, after a specially earnest appeal by the -venerable preacher, young Gould went forward to the altar and professed -conversion. He subsequently connected himself with the Presbyterians. -The late Rev. Dr. Jacob West, then corresponding secretary of the Board -of Foreign Missions of the Dutch Reformed church, preached a number of -times in the Roxbury Reformed church. Gould always attended, and the -Rev. Dr. West frequently said Gould was always a remarkably attentive -listener.” - -Mr. Gould’s name was discussed most prominently in connection with -church work last February, when he gave his check for $10,000 to -the Rev. Dr. John Hall. The circumstances aroused much comment and -considerable unfavorable criticism. - -On Tuesday evening, February 23d, the Gould mansion was handsomely -lighted up. Over one hundred invitations had been issued by Mr. -Gould and his daughter, Miss Helen Gould, to prominent Presbyterians -and members of the Presbyterian Board of Church Extension. It was -understood by those receiving the invitations that the reception was -solely for the purpose of raising funds. Mr. and Miss Gould received -the guests. They were assisted by Mrs. Russell Sage and Mrs. J. P. -Munn. The Rev. Dr. Paxton said, in the course of his opening address to -the guests: - -“When I asked Mr. Gould about opening his home for a meeting of the -friends of Presbyterian church extension, without hesitation or -deliberation he and Miss Gould said at once, and said it cordially: -‘Certainly, with great pleasure,’ and Mr. Gould added: ‘I believe in -church extension on Manhattan Island.’ But Mr. Gould has taken another -step in the right direction, for since he asked us here--Mr. Sage told -me this--Mr. Gould, who is superficial in nothing, wanted to know what -church extension is, and what church ought to be extended, and so he -read our confession of faith. - -“I am not certain of that, for he and the revision and new creed people -would not agree; he is old school; he believes in obeying marching -orders, like Wellington; in walking in the old paths, like the New York -_Observer_. But one thing, Mr. Sage told me, our host has made up his -mind on, and that was that our form of church government was the most -just, the most republican, the best in the world. Therefore, our host -is not only in favor of church extension but of Presbyterian church -extension. He wants no popery, no prelacy, no three orders in a church -in a land where all are equal in rights and before the law. I am sure -this information will warm Dr. Hall’s heart and impart to his speech -increased fervor when he speaks to-night. - -“We are here to face the foe, to take heart of hope, to give our money, -our prayers, our tribute, our toil, knowing no such word as fail, -to this good cause of extending, as Mr. Gould says, the only true, -holy, catholic, American church--our old blue-bordered Presbyterian -denomination.” - -“I have never met Mr. Gould but once before,” said the Rev. Dr. Hall, -“and that was many years ago. A gentleman in Chicago wrote me regarding -a missionary, who had been called back from China by the illness of his -wife. The wife had recovered after the missionary’s return, and the -couple wanted to return to China again. The Chicago gentleman wanted -to know if I could not secure a free pass for the man. I went to the -railroad authorities, and was referred to Mr. Gould. - -“I entered the room with fear and trembling and with many misgivings. I -had never seen Mr. Gould, and you can all sympathize with my feelings. -He received me cordially and listened to all I had to say. He said he -thought it was a very deserving case and asked me to leave a memorandum -of it. The next day I received a communication from him containing a -ticket for the railway journey and another for the missionary’s passage -to his destination.” - -About $20,000 was subscribed at this reception, and Jay Gould gave -his check for $10,000. The Rev. Dr. Parkhurst was among those who -criticised the affair as an ostentatious display of wealth in the name -of religion. He wanted to know where Mr. Gould got that $10,000. - -The religious side of Mr. Gould’s life, so far as the public knew -anything of it, was fully told at this church-extension reception. - -Mr. Gould was interested in the extension of the University of the City -of New York. Chancellor MacCracken said: - -“Mr. Gould was very much interested in the university from his interest -in telegraphy and telegraph lines and the fact that in this building -the first telegraph had its home. Prof. Morse labored here fifty-five -years ago, and was assisted by two of the university’s professors, -Profs. Gail and Vail. - -“I had known Mr. Gould for five years, and from the beginning of our -acquaintance he evinced an interest in the close relation between -the university and telegraphy, and he made it a favorite subject of -conversation. He made the largest single subscription toward our -purchase of the uptown grounds, $25,000, and he gave an additional -conditional pledge which I have never made public and shall not yet.” - -In his active, tempestuous business career one might infer that Jay -Gould had little time and less inclination to take up charitable work -to any extent. As a matter of fact, what little is known of him in this -connection became public within a very recent period. His friends say -he gave largely and was generous to a degree when he was assured of the -genuineness of a reported case of distress. He never, so far as can be -learned, made use of any public organization in the disbursement of -funds for any charitable object. Whatever he did he preferred to do -with his characteristic secrecy. - -He was greatly influenced by his family in giving, and through his -children quite a large number of institutions were aided by the money -of the financier. For instance, his daughter Helen, of whom he was -exceedingly fond, is interested in many organizations engaged in -charity work. Through her Jay Gould has given frequently and largely. - -A pretty story is told of the charity organization society that existed -in Mr. Gould’s own household. Its sessions were held each morning after -breakfast. Like other rich men, he was assailed constantly with showers -of begging letters. These were regularly sorted out every morning, and -each member of the family chose as many from the pile as desired until -none were left. If a letter appeared to describe a case of real need it -was placed in the center of the table. The others were burned. - -Then ensued quiet investigation, conducted as secretly as the -operations of the closest detective bureau. People in want were given -aid commensurate with the needs of the particular case, but were -never able to thank the donor, for the identity of the giver was never -disclosed. In this way, it is said, many hundreds of poor people were -relieved. - -Another method employed was to look up cases of distress independent of -the petitions poured in by mail. To just what extent this charitable -work was carried on will never be known, for those conversant with it -will not speak of it. - -Mr. Gould’s name is unidentified with any great public benefactions. -Astor and Tilden founded libraries, Drew established a theological -seminary, George I. Seney distributed millions and Vanderbilt endowed -a hospital, but Gould’s purse was never opened by any such generous -ambition. He was kind to his relatives, gave his brother a good -position in the Missouri Pacific railroad and built his sisters a -school in Camden. He gave liberally to alleviate the suffering by -the Chicago fire and by the Memphis yellow-fever plague, made big -subscriptions to the Grant and Garfield funds, and added eighty acres -to the Mount Vernon property. This was nearly all he did in a public -way. Gould’s politics sprang from his pocket, not from his patriotism. -He has already been quoted as saying that “in Republican districts he -was a Republican, in Democratic districts a Democrat, and in all an -Erie man.” But Mr. Gould was more a Republican than anything else, -for he obtained, or thought he could obtain, more recognition and -protection from that party than from the Democratic. The Republican -party was the party of large land grants, of liberal appropriations -and of corporation tendencies. In presidential elections Mr. Gould -often contributed heavily to the Republican campaign fund, and his -check was always solicited and joyfully received. In 1880 his money -was probably part of that which bought Indiana for the Republicans, -and it was charged that he obtained reward from President Garfield -in the appointment of Stanley Matthews as associate justice of the -Supreme Court, whose views relative to the Pacific railroads and -other corporation questions were understood to be favorable to Gould. -This charge, of course, was hard to prove, and may be unjust to both -Garfield and Matthews. - -In 1884 Gould supported Blaine. He was present at the celebrated -millionaire dinner given to Blaine at Delmonico’s two or three -evenings before the election, and which, with the Burchard incident, -probably turned the evenly-balanced scales of public opinion against -the Maine statesman. Gould’s money was powerful and his presence was -contaminating, and the public distrusted any of its servants who seemed -to be friendly with him. - -One of the most sensational stories about Mr. Gould’s career is told by -a prominent politician now in Washington. - -“His next appearance here after the ‘Black Friday’ excitement,” said -the politician, “was when he tried to bribe Congress to let up on the -Union Pacific railroad, which then owed the government $1,000,000,000. -He desired the passage of a bill giving favorable terms to the railroad -in adjusting its outstanding liabilities with the government. -Huntington was here with Gould. Money was plentiful as water. As one -man who got some of it said, ‘All that was necessary to do was to -stretch your hand and take it.’ Gould, flushed by success with his own -creatures, fancied he could buy a majority. In fact, he thought he -could buy the entire Congress if he desired. He went into a prominent -senator’s room on Fourteenth street whom he knew slightly. He told -him he wanted to talk to him about the pending bill. ‘Mr. Gould,’ the -senator replied, ‘if you want to see me about public affairs, you will -have to call on me at the senate.’ - -“‘But I don’t want to go to the senate. I won’t go there. I want your -assistance and I desire to make it worth your while to assist me.’ - -“‘Mr. Gould,’ said the senator, rising and pointing to the door, -‘oblige me by leaving my rooms.’ - -“Gould, dumbfounded, went. But he was more successful elsewhere. He -needed forty votes. I saw a list on the day the debate was to end. It -contained the names of forty-three senators who were to vote for the -bill. I called old Thurman out. I told him he was beaten. He asked why. -‘Because,’ I said, ‘Gould and Huntington have forty-three votes.’ He -said it was impossible and I told him of the list I had seen. He wanted -the list. I doubted my ability to get it. ‘You must get it,’ he said. I -was a correspondent, and after a while secured the list and copied it -for my paper. Then I showed it to Thurman. He put on his glasses, took -a pinch of snuff, read the list, and exclaiming, ‘This is just what I -want,’ rushed into the senate. - -“When Stanley Matthews, one of Gould’s creatures, who was speaking, -sat down, Senator Thurman rose to close the debate. I was in the press -gallery. Gould and Huntington sat in the senators’ special gallery with -the list of their creatures in their hands to check off every senator -as he voted in order that they might know who were faithful to their -bribes. They smiled pityingly when the old Roman began. They did not -believe in integrity. To them every man had his price, and they had -paid the price of a majority--Thurman’s speech could not hurt them. It -was a magnificent speech. Thurman rang all the changes and his honest -face, his earnest voice, imposing presence and piercing eyes made many -a public bribe-taker wince. His eloquence was wonderful, and toward the -last the smile of pity on Gould’s face gave way to a look of anxiety -and that to fear. When in ending, the old Roman, rising to his fullest -height, cried out: ‘It has been charged that mighty millionaires have -purchased a majority of this senate; that they have collars around the -necks of forty-three. There are circumstances which suggest, if they do -not prove, the correctness of that charge. Can it be true? A list has -been prepared containing the names of the forty-three. Here it is.’ - -“He took it from his pocket, and while many a face blanched he read it. -‘And now,’ he concluded after an almost breathless silence, ‘now we -will see if the charge be true.’ - -“Well, the vote was taken. Before it was half over I knew that most of -the forty-three had taken to the woods. Blaine, Matthews and Hill, of -Georgia, I remember, stood their ground and voted for Gould; but when -the clerk footed up the vote it was found that Gould had, instead of -forty-three, only fifteen votes. His face was black with rage, and so -was Huntington’s. It was a hard day for them, but it was a glorious one -for Thurman, and to him the country owes a debt of gratitude.” - -No man in the country had a wider audience than Gould. Whatever he -had to say was sure of publication in every newspaper in the land. -Journals that continually denounced him would print everything he had -to say as a matter of news. Gould was always an interesting figure. The -public never tired of reading about him, his operations, his yacht, -his home, his daily life. Every word he uttered was eagerly reported -and his movements were watched as closely as the President’s. In his -later years he was quite accessible to newspaper men, and they found -him not averse to the process of interviewing if he had anything to -say. The _Tribune_ and _Sun_ were his favorite mediums of communication -with the public, because they seldom attacked and often defended -Gould. Indeed, they were looked upon as his personal organs during -a part of his life. But Gould would frequently give interviews to -other papers. He recognized the fact that the papers which opposed -him were of the widest circulation and influence, and that if he had -anything to say it was time to give it to the largest circulation. The -_World_ was foremost in denouncing his operations, but he was often -pleased to reach the public through its columns, even if his words -were accompanied with severe editorial criticism. Mr. Gould was a good -talker; he possessed the art of saying little or much, as he pleased. -The most skillful of interviewers could not trap him into saying -something which he did not wish to say. When he got through he would -stop, and no amount of ingenuity could induce him to continue. Mr. -Gould was fond of testifying to the honesty and good faith of newspaper -men. When he knew his man he said he could trust him not to betray him. -But Gould almost invariably insisted on seeing the proof-sheets of the -interview before publication. - -From 1880 to 1883 Mr. Gould owned the _World_. We have his own word -(in an interview in the _World_ in June, 1883) that he purchased the -control of the paper from Col. Tom Scott, the famous Pennsylvania -railroad king, as a part of a negotiation which included also the -purchase of the Texas Pacific railroad. Mr. Gould said that Col. Scott -appealed to him at Berne, Switzerland, in 1879, to take the road and -the paper off his hands. William Henry Hurlbert, who was editor of -the _World_ under Gould, gave a different version of the transaction, -claiming that the purchase from Col. Scott was the result of a -negotiation opened by Mr. Hurlbert with Mr. Gould. - -The _World_ did not thrive under the ownership of Gould. It did not -possess public confidence. The paper was used as an instrument in -Gould’s Wall street operations. Brilliant editorials could not redeem -it from the withering influence of Gould’s name. Its circulation had -shrunk to 15,000 when Mr. Joseph Pulitzer purchased it in May, 1883. - -After church, charities, politics and the press, the relations of Mr. -Gould with his employes are interesting to notice. - -Mr. Gould was not a believer in cheap men. In the employment of help -he regarded economy as poor policy. In the various branches of his -extended business he aimed to secure the best men possible, and he was -never known to dicker over the amount of pay. His conspicuous success -in avoiding the legal shoals through which he was obliged to thread -his way during his eventful career was due mainly to the fact that he -always had in his employ the very best legal talent that money could -procure. - -The story about Mr. Sage and his office boy has been frequently told in -Wall street, but it has never appeared in print. Mr. Sage had an office -boy who had been with him for several years, was familiar with his -methods and moods, and understood perfectly well the status of each of -Mr. Sage’s customers. The boy was alert, tactful and faithful, and in -due course of time received tempting offers to leave Mr. Sage’s employ. -He, however, stuck to Mr. Sage for a long while, imbued with the false -hope of advancement. - -The boy’s salary was $15 a week, and when he told Mr. Sage one day -that he had been offered $25 a week to go elsewhere, Mr. Sage coldly -told him that he had better go, and he went. Jay Gould happened in Mr. -Sage’s office a few days afterward and casually remarked: “Why, where -is John?” - -“Oh! he has left me,” said Mr. Sage. “He got extravagant notions in his -head and I had to let him go. But I’ve got a new boy and I save $3 a -week on his salary.” - -“You do, eh?” remarked Mr. Gould, with undisguised disgust. “Well, have -you figured how much you will lose on his blunders?” - -When Col. F. K. Hain was made general manager of the elevated railroads -in this city, he was unknown to Mr. Gould. It was not long, however, -before the quiet little millionaire began to take a lively interest -in him. Col. Hain possesses qualities which excited admiration in Mr. -Gould’s breast. One day, not many years ago, Mr. Gould, as president -of the Manhattan Railway Company, received Col. Hain’s written -resignation. In great surprise he sent for Mr. Hain and asked him to -explain the reason for his resignation. - -“Mr. Gould,” said the colonel, “I have received from the Reading -Railroad Company an offer of the position of general manager at a -salary of $12,000 a year, and in justice to myself and my family I do -not think that I ought to refuse it.” - -“How much are you getting here?” asked Mr. Gould. - -“Six thousand five hundred dollars a year,” replied Col. Hain. - -“Is the increase in salary your only reason for your resignation?” - -“Yes, sir.” - -“Will you stay with us for $15,000 a year?” asked Mr. Gould. - -“Certainly,” responded Col. Hain. - -“Very well, let it be so,” said Mr. Gould. “And, Colonel, I am -perfectly satisfied with your work. Never let a question of money come -between us.” - -The loyalty of S. S. H. Clark, general manager of the Missouri Pacific -and president of the Union Pacific, to Mr. Gould has been the subject -of frequent comment. Mr. Clark is by no means a low-priced man, and the -fact that he has long been one of Mr. Gould’s trusted lieutenants means -that he has not worked for low pay. - -It is related that the Atchison people once tried to get Mr. Clark -to enter their employ by offering him an advance of $10,000 on the -salary the Missouri Pacific company was giving him. Mr. Clark promptly -refused the offer and said nothing. Mr. Gould, however, heard of the -matter from other sources, and on the Christmas day following Mr. Clark -received a check for $50,000 with a short note which read: “A merry -Christmas to my loyal friend.--Jay Gould.” - -“During the big strike troubles in the Missouri Pacific,” said one -broker, “one of the employees who stood by the company was shot and -killed. I entered Mr. Gould’s office a few days later and found him -making out a check. As I approached the desk I saw that the check was -for $5,000, drawn to the order of the widow of the murdered man. Mr. -Gould quickly turned the paper face downward. - -“‘You are too late, Mr. Gould,’ I said. ‘I unintentionally read the -check.’ - -“He smiled a little as he quietly remarked, ‘We must look out for those -who stand by us.’” - - - - -CHAPTER XX. - -A CHAPTER OF ANECDOTES. - - -While it is true that Gould loved to envelope his transactions in -mystery, and was a master of the art of keeping silence, and though -during most of his life he was engaged in financial intrigues and -occult speculations, yet the main facts of his life can be found -in the official records of law cases and the numerous legislative -and congressional investigations that were held on many of his -transactions. The facts of this volume are not to be understood as -doing Mr. Gould an injustice, for almost the worst things that are said -about him are the ones to which he himself testified under oath. - -The greatest financial transaction ever consummated in America is -believed by many people to have been the creation of the Union Pacific -Railway Company by Jay Gould. By a stroke of financial genius at once -bold and adroit, he consolidated into that corporation other great -railroad companies, assuming control of all. It will be remembered -that the Union Pacific Railroad Company and the Union Pacific Railway -Company are two distinct corporations. The former was the original -company. - -It was in 1873 that Gould went into Union Pacific. He bought about -$10,000,000 of the stock, had it bound into a book and put it in a -safe, as he told a friend at the time, “for his wife and family as an -investment.” In 1878 Gould conceived the idea of a grand _coup_, and -this was carried out so successfully that in sixty days he had made -terms which netted him about $21,000,000 in profits. - -He first ran over to Amsterdam from London, arriving there late in the -morning. At 10 A. M. that day he notified the Dutch bondholders of the -Denver Pacific that he would be pleased to meet them at 11 o’clock. -Promptly at that hour he met them, and at 12 he left Amsterdam with -his gripsack full of the securities of the Dutch bondholders. By this -means he captured control of the Denver Pacific. Inside of ten hours -he bought out Commodore Garrison’s interest in the Missouri Pacific. -He bought out ex-Governor Ames’ interest in the Central Branch of the -Union Pacific, and he had previously formed a pool by which he acquired -control of the Kansas Pacific. - -One day the Union Pacific directors awoke to the alarming discovery -that Mr. Gould had dropped out of their organization and was surveying -a line from Denver to Salt Lake City. The Kansas Pacific was utterly -worthless, the Central Branch had not earned any money for years, the -Denver Pacific had been in very bad shape; but when the Union Pacific -directors discovered the extent of Mr. Gould’s combinations they lost -no time in boarding a special car in Boston and rushing over to New -York to see him about it. They went up to Mr. Gould’s house and were -there gathered in by him on the consolidation of the three roads, -all of their stock being exchanged at par and merged into the new -Union Pacific Railway Company as distinguished from the Union Pacific -Railroad Company. - -This incident formed one of the subjects of inquiry committed to the -Pacific Railroad Commission in 1887. The members of the commission -appointed by President Cleveland consisted of Gov. Pattison, of -Pennsylvania; E. Ellery Anderson of this city, and David Littler, of -Illinois. - -The Union Pacific railroad and the Kansas Pacific railroad companies -had received government subsidies in bonds and lands. The bonds were -received upon the stipulation that the companies would pay at par and -accumulated interest upon their maturity. The first of these bonds will -mature in 1895. An application had been made by the Pacific railroads -to Congress to extend the time of payment, and this commission was -appointed to report upon that matter and incidentally to furnish -Congress with information relative to these deals which had affected -the status of the corporations. - -The commission began its sittings in this city, at No. 10 Wall street. -A large number of railway magnates intimately connected with the -Pacific railroads were first examined, including Russell Sage and -Sidney Dillon. They were examined particularly with a view to finding -out exactly what had taken place when the Union Pacific railway was -created. They seemed to know nothing about the matter. At every point -the well-directed questions of the inquirers were adroitly turned -aside. The witnesses did not know or could not remember. No light had -yet been thrown upon the subject under examination. But the great -witness of all was reserved for the last. This was Jay Gould. He knew -it all, but the great question was, “Would he tell?” Nobody believed -that he would tell voluntarily the facts relating to his connection -with the government interest in the matter, but it was believed that a -severe and searching cross-examination would compel him to divulge some -of the facts. - -An immense amount of labor was gone through with in anticipation of the -time when Jay Gould should take his seat in the witness chair. Men on -the inside and familiar with the lines along which the inquiry should -be directed devoted weeks to the study of figures and the procurement -of papers upon which to base the questions which should be asked of Mr. -Gould. Dozens of questions on the same subject were prepared. If he -answered one question one way he was to be asked a certain question, -and if he answered another way he was to be asked another question. -In this way it was believed when Mr. Gould took his seat that the -beginning of a long struggle was at hand. - -That was on May 17, 1887. Mr. Gould wore a plain pepper and salt -suit and a shabby silk hat. The examiners, all ready to level their -batteries of questions at him, were dumbfounded when the first -questions were asked and Mr. Gould blandly stated his willingness and -desire to afford all the information in his power. He seemed anxious to -withhold no facts, to evade no questions, and to help the members of -the commission in their work. - -There being some uncertainty as to the exact route of some of the roads -in question, Mr. Gould even took out of his pocket a little map and -kindly enlightened the members of the commission as to the various -localities, and said: “I had anticipated that possibly you might want -to know what had been my holdings of various securities relating -to this transaction, and so I instructed my bookkeeper to draw off -a statement, which I now submit to you.” He then produced a little -memorandum covering about sixteen lines of writing, which covered all -the facts and gave the cue to every feature of the transaction. Mr. -Gould said he had kept books of all his transactions. - -Q. Where are the books? A. I have them. - -Q. Where? A. In my possession. - -Q. Are they at the service of the commission? A. If they desire them, -with the greatest of pleasure. - -This willingness to show the books created a profound sensation. -Railway magnates worth many millions and controlling thousands of miles -of road had one after another followed each other to the stand only to -show that Gould was the one who pulled the strings, that they did not -know what his intentions were in regard to the commission, and that he -made up his mind upon a certain line of policy without consulting them. -Many of these magnates were in the room and they sat with open mouths -and plainly evinced their astonishment when they saw Mr. Gould giving -up the hitherto carefully guarded facts. Nothing more plainly showed -the absolute mastery of Jay Gould over all the other railway magnates -of the country. - -Mr. Gould had several “doubles” who were constantly being mistaken for -him. - -Broker Sam Leopold, of No. 84 Broadway, for several years was known as -Gould’s double, but about a year ago he got tired of the distinction -and had his beard cut to a point. During the campaign of 1884 he was -offered $20,000 to impersonate Mr. Gould. Conspiring brokers proposed -that he smear blood on his face and roll on the sidewalk near the -corner of Broad and Wall streets. Confederates were to be on hand to -keep the crowd back till an ambulance arrived, and to say at intervals: -“That’s Jay Gould; he’s fatally injured.” - -Further details of the plan were to have a carriage near Chambers -street hospital for the purpose of taking “Mr. Gould” to his house. -Of course Leopold’s remarkably close resemblance to Gould would be -sufficient to make the scheme work well, especially as a man was to -have been posted at Irvington to telegraph that the millionaire was in -his country home. Then the telegraph wires were to be “grounded” for a -few hours. The tremendous excitement would naturally depress the Gould -stocks, and, in sympathy, about everything would go down with a rush. -The schemers were to take advantage of this by selling short, and they -expected to have at least from 10 to 2 o’clock in which to work this -peculiarly daring manipulation of the market. - -By the time the truth would be known the bold plotters would turn and -go long of the market, on the recovery from the temporary shock, and at -least two or three good-sized fortunes were expected to be realized by -the double deal. Sam reluctantly declined the tempting offer. Although -he wanted the $20,000 awfully bad, he feared that he might be mobbed -after the fright was over, and so the scheme fell through. - -Leopold knew Gould very well, and they delighted to meet and look at -each other. It is related that whenever Sam discovered a new gray -hair in his whiskers he would hurry to Mr. Gould, only to find that -the millionaire was also keeping tab on his white hairs, and the two -accounts tallied exactly. - -Some years ago Mr. Gould went to the Rocky mountains, where he wanted -some surveying done in the neighborhood of Black Hawk in Colorado. He -employed a surveyor and described the work he wanted done. The Indians -were rather troublesome at that time and the surveyor said: - -“I will have a good chance of getting scalped.” - -“Well,” replied Mr. Gould, “I want this work done, and I want to know -if you will do it.” - -“It will be a bad thing for my family if I am killed,” said the man, -“but I’ll undertake the work.” - -“How much money would it take to make you independent out here?” asked -Mr. Gould. - -“I’d be well off if I had $5,000,” replied the surveyor. - -The surveying was done, and one day, some months later, Mr. Gould asked -Mr. Morosini what the surveyor’s name was and directed him to send the -man a check for $5,000, with the remark: - -“We’ll make him the richest man in Colorado.” - -One of the stories told of Mr. Gould to illustrate his determination -to die a rich man whatever happened was this: In 1884, when it was -ascertained that Mr. Gould was in financial danger, he took from his -safe $11,000,000 worth of stock of the Manhattan and the Missouri -Pacific railroads and stowed it away in an iron box, which he locked -and sealed. - -He resolved that that box should never be opened until after his death, -and that no matter what happened the securities should not be touched. -He carried the box, it was said, to the vaults of a safe deposit -company, where it was locked up, and the particular vault in which it -was placed was sealed, too. Instructions were given to the officers of -the company that the seal on the vault was not to be broken until after -his death, and then only in the presence of all of his executors. - -Ex-Judge John F. Dillon knew Mr. Gould intimately. He first met -the financier in 1879, and was his legal adviser in many of his -undertakings. - -“There were many distinct characteristics about Mr. Gould,” said -Mr. Dillon. “I never knew him to utter a profane word, and he was -as delicate and sensitive in temperament as a woman. Mr. Gould -wrote and spoke capital English, but he never wrote a word that was -not necessary. Judge Usher, who was Secretary of the Interior under -Lincoln, an able and great lawyer, once said to me that he had bought -a railroad for Mr. Gould, or in his interest, and had written out a -contract covering two or three pages of foolscap. The judge, in telling -of the incident, said: ‘I sent the contract, which I considered a -thorough document, to Mr. Gould, and he almost immediately returned it -written out on a half page of paper of the same size. When I got the -document and found it perfect in its condensed form, I felt ashamed -of myself.’ Mr. Gould was so self-reliant that he had little use for -lawyers. He was his own negotiator and contract maker. When he bought -the Iron Mountain road he showed me, the next day, a contract for that -great purchase. It was a contract written out in his own handwriting on -less than two pages of social note paper. - -“He concluded the contract of the purchase of the Missouri Pacific -without consulting his lawyers. When shown the contract the next day, -his counsel told him he had bought a big lawsuit, and that title to -the whole property was in question in the Supreme Court of the United -States. He simply said, ‘I have given my check for $3,700,000, and -the thing is closed. The seller would laugh at me if I went back and -expressed a desire to rescind.’ He thereupon directed his attorneys to -take charge of the case and try to sustain the title of the property -bought, which after years of litigation they did. - -“But great as Mr. Gould was as a financier and railway manager, he -would, if bred to the bar, have made a greater lawyer. That is a fact. -I have seen him greatly provoked, but never saw him lose his temper or -utter a threat. Nevertheless, he had a good memory, both for benefits -received and injuries done. He was probably, in the language of Dr. -Johnson, ‘a good hater without loquacity and pomposity.’” - -A popular error about Jay Gould is the notion that he was invincible. -In 1866 a promissory note for $500 with his name went a-begging round -Wall street at a heavy discount, yet he left a fortune estimated at -$100,000,000. If Gould had died poor, what would have been the general -verdict on his career? And yet, only eight years ago he was on the -verge of failure. This was after the panic of May, 1884, one of the -few times that he was tempted into the stock market as a speculator in -order to hold up the price of stocks with which he was burdened. - -The late Charles F. Woerishoffer, Henry N. Smith, and other operators -were united in a combined effort to bear the securities which Gould was -carrying. He had supported them for a time by obtaining sterling bills, -giving his securities as collateral and then converting the bills into -cash. But sterling loans, like all others, come to maturity; the bears -were as unscrupulous as himself, bold and skillful and persistent. -Gould’s Western Union fell to 49 and his Missouri Pacific to 62. He -was beaten. One morning he had his lawyers execute an assignment -of his property, and on the following day--a beautiful Sunday -morning--his yacht went down to Long Branch, where the bear operators -were summering. Gould’s emissaries landed and held a conference with -his foes. They bore his ultimatum--a copy of the assignment and the -statement that unless the bears made terms with him he would on the -following morning file the assignment and give public notice that he -was unable to meet his engagements. - -At that time he was supposed to be borrowing some $20,000,000, and -his failure would create a bigger panic than the one the street had -just passed through. Many of the firms with which the bear combine -had “short” contracts outstanding would doubtless fail, and in the -general crash the successful bears themselves might be heavy losers. -After a protracted conference the bears agreed to “let up” on Gould on -condition that he should turn over to them 50,000 shares of Western -Union at the current market price, $50 per share. This enabled them to -make delivery of the shares they had sold at high prices. In speaking -of this “deal” the following day, one of the bears expressed his -confidence that Gould would have to fail anyhow--the help he received -would be transient in its effect as a glass of brandy given to a dying -man. - -He was wrong. He underestimated the fertility of resource in Gould and -his associates. - -Many of the men in the financial quarter of New York City the day -of his death devoted their time to forming estimates of Mr. Gould’s -character as a man and relating anecdotes of his life. In reference to -the general subject under discussion, Col. Henry T. Chapman, the art -connoisseur of the Stock Exchange, said: - -“Gould’s art collection was little known, for he rarely ever figured -personally in buying pictures, and went so little into social life -that the public had no knowledge of his gallery. It is very choice, -however, consisting of about one hundred paintings. Many of them are -representative works of the Barbizon and modern French school. He has -one of the finest examples of Corot in the country, and masterpieces by -Rousseau, De Neufville and others. - -“I purchased for him at the Stewart sale the finest example of Knaus -in the country. It is a famous work known as ‘Knaus Children,’ and -cost $25,000. Works by that artist have brought higher prices in this -country, but no one has a finer example. This illustrates one thing -that I would like to say about Mr. Gould. He did not buy a painting -on account of its price, but because he appreciated its beauties. He -had a fine, a highly cultivated artistic sense, and showed a wonderful -appreciation of color, tone and treatment in a picture. - -“He knew the inspirational works of an artist from the mediocre -productions, and showed a nice discrimination in his selections. He -never bought a picture for a household decoration nor to fit a recess -in the wall, but for the love of the art it displayed and the enjoyment -it gave him. His was the true artistic spirit.” - -“The quality for which I most greatly respected Mr. Gould,” said an -acquaintance, “was his consideration for others. This may seem a -strange quality to attribute to a man who is esteemed a ‘wrecker’ by -nine-tenths of Wall street men, but it was the thing that I often -remarked in a long personal acquaintance with the man. - -“It was once my pleasure to accompany him and some members of his -family to Florida. His son George and a young companion were of the -party. When we arrived at Palatka, Fla., Mr. Gould found that a suite -of apartments had been reserved in Orvis’ hotel for each member of the -party. - -“This was not unusual on the trip, but it happened that at Palatka -there were many tourists arriving by the same train who were unable to -obtain accommodations in consequence of the allotment of rooms to the -Gould party. Mr. Gould took in the situation at once. ‘See here,’ said -he to the proprietor, ‘why do you give me all these rooms? Others need -accommodation as well as I.’ ‘But,’ said the man, I----’ ‘That’s all -right,’ replied Mr. Gould, ‘I know all about that. These people need -rooms and should have them, and if there are not enough here for the -ladies just send those boys of mine over to the barn.’ - -“George Gould and his companion,” said the man in conclusion, “slept -that night in an outbuilding, scarcely a barn, but little better.” - -“Mr. Gould,” said President Norvin Green, of the Western Union -Telegraph Company, “was a man who, while he governed a corporation -carefully, was always ready to reward merit and the faithful -performance of duty. I remember at one of our annual meetings one of -our department men, in making his report, appended thereto a request -that his salary be raised. He asked for a large increase--fifty per -cent. I think, from $2,400 to $3,600 a year. The Committee on Expenses -was not inclined to grant the request. They were willing to give him a -slight increase, but nothing like he asked. - -“There was something peculiar about his work--I don’t recollect what -now--but it led to a somewhat long debate. This was terminated by Mr. -Sage, who said as he always did when in doubt: ‘Well, we will leave the -matter to Mr. Gould.’ When Mr. Gould came in the matter was referred to -him with the explanation of the debate and the points of difference. -Mr. Gould took up the report and read it through. Then he read the -request for an increase. When he had finished he turned and said: -‘Gentlemen, is there any of you who would like to do the work that man -has done for $2,400 a year?’ - -“Every man shook his head. ‘Neither would I,’ remarked Mr. Gould. ‘If -he can do all this work he is certainly entitled to this $3,600 he -asks, and we get off cheaply at that in having a faithful, honest and -most capable employe.’” - -Among other stories told of Mr. Gould are the following: - -Some years ago he was tendered the nomination of Rex, the king of the -Mardi Gras carnival in New Orleans. He declined this, of course, and -when asked jokingly by a friend why he had put ambition away, remarked -dryly: - -“Well, I don’t think the nomination was entirely disinterested or that -I would have reigned supreme. I have always heard that there was ‘a -power behind the throne,’ and in this case I am sure of it.” - -With this he thrust his hand into his pocket and drew forth the letter -notifying him of his selection to the high office. Enclosed in it was a -bill for $1,000, the price of the honor. The functions of Rex that year -were performed by a St. Louis brewer. - -Mr. Gould could never accustom himself to take with equanimity the -criticism and abuse that were heaped upon his head. He was exceedingly -sensitive of ridicule and loathed the term “Little Wizard,” by which he -was not infrequently designated by the Wall street men and the papers. -He often heard himself most grossly abused. Once, it is related, -during a particularly vexatious series of delays to a crowded elevated -railroad train in which Mr. Gould happened to be, a tall, muscular -individual broke out into a torrent. - -“It’s ridiculous,” he shouted. “The accommodations on this road. -Absurd! Scandalous! That man Gould won’t put on an extra car. Valuable -franchise for a song, but an extra train means a dollar less or so in -profits. It’s a shame, and I’d like to have that little rat Gould here -to tell him and then pull his nose.” - -Mr. Gould stood by the blusterer’s side almost crushed in the crowd. -He said nothing, however, and the man continued his outburst until he -reached a station, where he left the car, after pronouncing a final -malediction upon Gould’s head. - -“Well, well,” said Mr. Gould, turning to an acquaintance, “that was -hot, wasn’t it? I was very much annoyed at the delays and crowds myself -and I did want to tell the man that I was not responsible for the -limited number of trains. If he had not been so abusive, I would have -told him that it was all Sage’s doings. He advised taking the extras -off and I suffer for it. I do wish Sage could have been here, for I -think I would have told that fellow all about it and let Sage get his -deserts.” - -An illustration of the rush and hurry of Jay Gould’s life is told among -the Pennsylvania mountaineers in the region round about Gouldsboro. - -Mr. Gould’s father was superintendent of the tannery at Canadensis, -which was the property of his son, and received therefor the salary -of $20 per week, which in those parts placed him high up in the -category of the well to do. Canadensis is four and a half miles from -the railroad station at Cresco on the Delaware, Lackawanna and Western -railroad, and the road between is a rough mountain road not fitted for -fast speeding. - -When the old man died Jay Gould was summoned by telegraph. He reached -Cresco in a great hurry. Business matters were pressing and he had no -time to waste. He hired a rig and told the owner to drive him over to -Canadensis and back in time to catch the next train back to New York. - -The owner shook his head. - -“Go ahead,” said Gould. “I’ll pay the damage.” - -The horse was put to its utmost speed and Gould had just one hour and a -half to devote to preparations for his father’s funeral. Then he drove -back to Cresco and caught his train, but he drove so fast that the -horse died from overexertion. Gould made good the value to the owner -without complaint. - -Pacific Mail was always one of Mr. Gould’s speculative favorites. He -had been more or less directly identified with it ever since the time -when A. B. Stockwell was its picturesque controller. Stockwell is -the historic gentleman who, in reciting the story of his Wall street -career, has graphically put in this way: - -“When I first came to Wall street I had $10,000, and the brokers called -me ‘Stockwell.’ I scooped some profits, and it was ‘Mr. Stockwell.’ I -got to dealing in a thousand shares at a time, and they hailed me as -‘Captain Stockwell.’ I went heavily into Pacific Mail, and folks lifted -their hats to ‘Commodore Stockwell.’ - -“Then one day Jay Gould came along, smash went Pacific Mail and I went -with it. They did not call me ‘Commodore Stockwell’ after that. Then it -was: ‘The red-headed son of a gun from Ohio.’” - -In the course of his Pacific Mail campaigning Mr. Gould was much more -frequently a bear, than a bull. He used to say he had never found but -one unerring bull point on Pacific Mail, and that was to report that -the company had lost one of its ships. Perhaps his biggest drive at -this stock was when he discomfited Leonard Jerome and played smash with -the uptown corps of speculators who made up what was a dozen years ago -known as “the Fifth Avenue Hotel party.” - -Just after that famous clean-out Leonard Jerome went abroad. In the -course of his meanderings he came upon the famed Temple of Karnak. - -“There, Mr. Jerome,” quoth a companion, “are the most remarkable ruins -in the world.” - -“No; oh, no; don’t tell that to me,” answered Leonard Jerome feelingly; -“you ought just to have seen Pacific Mail last summer!” - -Mr. Gould did not have any of that quality which descriptive persons -call “presence.” No stranger would have ever been impressed by any mere -look at him that he was much of a man. He was courteous always. In -public he was never known to get mad, or, indeed, even to say a rude -thing, except it be on one occasion, when, with more or less quietness, -he remarked to an ambitious young gentleman who more recently became a -figure in Wall street: - -“You make me feel very sorry that I am so busy. If I had time I’d -really enjoy taking a day off to send you to State prison.” - -Of course, Mr. Gould was in lots of scenes where passion ran high. -Everybody in Wall street recalls the historic day after Black Friday -when Mr. Gould’s old partner, Henry N. Smith, shaking his finger in Mr. -Gould’s face, shouted: - -“I’ll live to see the day, sir, when you have to earn a living by going -around this street with a hand organ and a monkey.” - -“Maybe you will, Henry, maybe you will,” was the soothing response. -“And when I want a monkey, Henry, I’ll send for you.” - -In the book of Mr. Clews quoted before, is found the following: “There -is a story told with several variations, in regard to a sensational -interview between Mr. Gould and Commodore Vanderbilt. The scene is laid -in the parlor of the commodore’s house. It was about the time that -the latter was making desperate efforts to get a corner in Erie, and -at that particular juncture when having been defeated in his purpose -by the astute policy of the able triumvirate of Erie, Gould, Fisk and -Drew, he had applied to the courts as a last resort to get even with -them. - -“They had used the Erie paper-mill to the best advantage, in turning -out new securities of Erie to supply the Vanderbilt brokers, who vainly -imagined that they were getting corner in the inexhaustible stock. Mr. -Vanderbilt was wild when he discovered the ruse, and had no remedy -but law against the perpetrators of this costly prank. These adroit -financiers usually placed the law at defiance, or used it to their own -advantage, but this time they were so badly caught that they had to -fly from the state, and take refuge in Taylor’s hotel in Jersey City. - -“It seems that during their temporary exile beyond the state, Gould -sought a private interview one night with the commodore, in the hope of -bringing about conciliatory measures. - -“The commodore conversed freely for some time but in the midst of his -conversation he seemed to be suddenly seized with a fainting spell, -and rolled from his seat onto the carpet, where he lay motionless and -apparently breathless. - -“Mr. Gould’s first impulse was to go to the door and summon aid, but -he found it locked and no key in it. This increased his alarm and he -became greatly agitated. He shook the prostrate form of the commodore, -but the latter was limp and motionless. Once there was a heavy sigh and -a half-suffocated breathing, as if it were the last act of respiration. -Immediately afterward the commodore was still and remained in this -condition for nearly half an hour. Doubtless this was one of the most -anxious half hours that ever Mr. Gould has experienced. - -“If I were permitted to indulge in the latitude of the ordinary -storyteller, I might here draw a harassing picture of Mr. Gould’s -internal emotions, gloomy prospects in a criminal court and dark -forebodings. His prolific brain would naturally be racked to find a -plausible explanation in the event of the commodore’s death, which had -occurred while they were the sole occupants of the room; and at that -time, in the eyes of the public, they were bitter enemies. - -“I can imagine that, in the height of his anxiety, he would have been -ready to make very easy terms with his great rival, on condition of -being relieved from his perilous position. It would have been a great -opportunity, if such had been possible, for a third party to have come -in as a physician, pronouncing it a case of heart disease. No doubt Mr. -Gould would have been willing to pay an enormous fee to be relieved of -such an oppressive suspicion. - -“The object of the commodore’s feint was evidently to try the courage -and soften the heart of Mr. Gould, who never seemed to suspect that -it was a mere hoax. His presence of mind, however, was equal to the -occasion, as he bore the ordeal with fortitude until the practical -joker was pleased to assume his normal condition and usual vivacity. If -Mr. Gould had been a man of common excitability, he might have acted -very foolishly under these trying circumstances, and this doubtless -would have pleased his tormentor intensely. - -“There is a humorous story told of Mr. Gould’s first yachting -experience, which was recently published in the Philadelphia _Press_, -and its veracity vouched for by a living witness to the event. It is -characteristic of Mr. Gould in some special respects, and runs as -follows: - -“At the residence of a club man, whose reputation as a _raconteur_ is -nearly as great as that of his Burgundy, I noticed a pretty model of a -jib and mainsail yacht. Replying to my admiring inquiry the club man -explained: - -“‘That is the model of a boat upon which were passed some of the -sunniest hours of my life. She was owned by one of the Cruger family, -of Cruger-on-the-Hudson, and has an added interest from the fact that -upon her Jay Gould acquired his first yachting experience, and so -eventful a one that I’ll bet he remembers it to this day. - -“‘Crugers--one of the oldest and best known families in the state, -intermarried as they are with other Knickerbockers like the Schuylers, -Livingstons and Van Rensselaers--owned all the land in the neighborhood -of the station subsequently named after them. A portion of this -property consisted of a brick-yard, which was rented to the son of old -Schuyler Livingston. It was in 1853 or 1854, and Jay Gould had just -failed in the tannery business in Pennsylvania. - -“Young Livingston’s leased brick-yard wasn’t paying, and he concluded -that he needed a shrewd business man at his head. He advertised for -a partner, and one day there appeared in response a small, dark -gentleman, looking scrupulously neat in his black broadcloth. He gave -his name as Jay Gould. Pending negotiations, Mr. Gould became the guest -of the Crugers at the old mansion on the hill. Every effort was put -forth to entertain him during his stay, the more as he seemed to regard -favorably a partnership with their young friend. - -“One day Mr. Cruger invited Gould to a sail to Newburgh, and got -ready his yacht, of which that model is the reduction. Several of us -youngsters were taken along to help work the boat. Eugene Cruger, a -nephew of the yacht’s owner, was one of us. Peekskill was reached, and -the whole party went up to the hotel. - -“All the way up the river we had noticed that Mr. Gould was uneasy, -shifting about constantly on the deck, where he sat, and squirming -and twisting as if to find a softer spot. Nothing was said about -it, of course, but when we landed Mr. Gould himself furnished the -explanation. From the heat of the sun, the yellow paint on the boat’s -deck had become baked and chalky, and it was not long before the little -man discovered that the dry powder was coming off on his trousers. -Hence his uneasiness. He concluded by saying that he was afraid his -broadcloth nether garments would be, if they were not already, ruined, -and was determined to abandon the trip and return by rail. This Mr. -Cruger would not hear of, and promised to obviate the difficulty. We -all adjourned to a general store, and Cruger bought for two shillings -and a half, a pair of jean overalls. These Mr. Gould put on when we -went aboard the boat, and expressed his unqualified satisfaction with -the result. - -“On our trip back from Newburgh, we again called at Peekskill, and once -more the party started for the hotel. This time Mr. Gould declined the -invitation to take something, and preferred to remain on board. About -an hour was spent in the hotel, when suddenly Mr. Cruger remembered -that he wanted some white lead, and young Eugene Cruger and I went -with him to the store to carry it down to the boat. - -“‘How’d the overalls work, Mr. Cruger?’ was the salutation of -the storekeeper. Then before answer could be returned, he added, -admiringly: ‘That friend o’ yourn is purty shrewd.’ - -“‘Who, Mr. Gould? Yes, he appears to be a thorough business man.’ - -“‘Well, I sh’d say so! He can drive a mighty sharp bargain.’ - -“‘Drive a sharp bargain?’ repeated Cruger, all at sea. ‘What do you -mean?’ - -“‘Why, don’t you know he was in here ’bout three-quarters of an hour -ago and sold me back the overalls you bought for him?’ - -“‘Thunder, no!’ roared Cruger in astonishment. - -“‘Well, sir, he jest did that. He kem in here, tole me he’d no fu’ther -use for ’em, that they was as good as when I sold ’em, an’ after we’d -haggled awhile he ’greed ter take two shillin’ fur ’em, which I paid -him. Here’s the overalls.’ - -“I can shut my eyes now,” went on the jolly club man, with a hearty -laugh, suiting the action to the words, “and call up Mr. Cruger’s face -with its mingled expression of amazement and incredulity. He left the -store in silence. Not until we had nearly reached the boat did he -speak. Then he only said, ‘Boys, I’ll fix him for that!’ We reached -home without any reference to the incident. On the way back Mr. Gould -sat upon his pocket handkerchief. - -“The same night Mr. Cruger perfected his plan. Next day Mr. Cruger -proposed a fishing party. Mr. Gould declined to go. He had concluded, -he said, not to take an interest in young Livingston’s brick-yard, and -would return to the city on the afternoon train. A business engagement, -involving quite a sum of money, had to be kept. His host argued with -him, but for a time to no purpose. The saturnine little man had a -tremendous amount of determination in his composition. Finally a -compromise was effected, it being agreed that he should put Gould off -at a station in time to catch the train. That he must catch it without -fail, he most emphatically declared. - -“The day passed on and we were off Sing Sing, when we saw the smoke -of the coming train. We had been running free before the wind, but -immediately Mr. Cruger, who was at the stick, shoved it down; we hauled -in on the sheets and headed for the Eastern shore. Mr. Gould was by -this time on his feet, clinging to the windward coaming, the deepest -anxiety pictured on his face. Just there the water shoals rapidly. We -were within fifty feet of the shore, opposite the railroad depot. The -time had now come for Mr. Cruger’s revenge. - -“‘Let go the main and jib sheets!’ he shouted. ‘Down with your board!’ - -“Never was order more eagerly obeyed. The sheets whizzed through -the blocks, ready hands slipped out the pin and jammed down the -centerboard, and in a second the yacht, with a grating shock and -shaking sails, came to a stand, fast on the sandy bottom. There she was -bound to stay until the obstructing board was lifted again. - -“‘What’s the matter?’ exclaimed Mr. Gould, anxiously. Of course he had -not detected the ruse, for he knew no more about the working of a yacht -than a sea cow does about differential calculus. - -“‘I’m afraid we’re aground,’ replied Mr. Cruger, with a fine assumption -of sadness. ‘Boys, get out the sweeps and push her off.’ - -“We struggled with the long oars in a great show of ardor, while Gould -watched us in breathless suspense, between hope and fear. But as we had -taken care to put the sweeps overboard astern, the harder we shoved the -faster we stuck. The little man’s suspicions were not in the slightest -degree aroused and he turned in despair to Mr. Cruger. - -“‘What shall I do!’ he almost wailed. ‘I’ve got to catch that train!’ - -“‘Then,’ replied the joker, solemnly, ‘you’ll have to wade or swim.’ - -“Already the train was in sight, two miles away, and whatever was to -be done had to be done quickly. As I have said, there was plenty of -grit in the embryo railroad king, and quick as a wink he was out of -his sable clothes and standing before us clad only in his aggressively -scarlet undergarments. Holding his precious broadcloth suit above his -head, he stepped into the water, which, shallow as it was, reached to -the armpits of the little gentleman. Then he started for the shore, his -short, thin legs working back and forth in a most comical fashion as -he strove to quicken his pace. The station platform was crowded with -people, and very soon the strange figure approaching them was descried. -A peal of laughter from 500 throats rolled over the water to us, the -ladies hiding their blushes behind parasols and fans. The men shouted -with laughter. Finally the wader reached the base of the stone wall, -and for a moment covered with confusion and but little else, stood upon -the rock, one scarlet leg uplifted, looking for all the world like a -flamingo on the shore of a Florida bayou, while the air was split with -shrieks of laughter, in which we now unreservedly joined. Then came the -climax of the joke, which nearly paralyzed the unfortunate victim. - -“‘Haul on your sheets, boys, and up with the board!’ was Cruger’s -order. As the yacht gathered headway and swept by within ten feet of -the astonished Mr. Gould, we laughingly bade him good-bye, advising a -warm mustard bath when he got home. - -“Then his quick mind took in the full force of the practical joke that -we had worked upon him, and his dark face was a study for a painter. -But the train had already reached the station, taken on its passengers, -and the wheels were beginning to turn again for its run to the city. -As Gould scrambled up the wall, his glossy black suit still pressed -affectionately to his bosom, the ‘All aboard’ had sounded and the cars -were moving. Every window was filled with laughing faces, as he raced -over the sand and stones, and was dragged by two brakemen onto the -rear platform, panting and dripping. The last glimpse we caught of him -was as the train entered the prison tunnel. Then, supported on either -side by the railroad men, he was making frantic plunges in his efforts -to thrust his streaming legs into his trousers, as the platform reeled -and rocked beneath him.” - -It was once suggested to Mr. Gould that he had been fairly successful -in life, and the inquirer wanted to know if Mr. Gould wouldn’t tell the -secret of it. - -“There isn’t any secret,” said Mr. Gould. “I avoid bad luck by being -patient. Whenever I am obliged to get into a fight I always wait and -let the other fellow get tired first.” - -Any student of the history of Mr. Gould’s career in the corporation -world will appreciate how again and again he found this quality of -patience a prime investment. He never seemed to be in a hurry about -anything. One of his enemies has remarked that during the last twenty -years Jay Gould spent $1,000,000 hiring lawyers and paying court fees -to accomplish nothing except to have lawsuits postponed. - -And now the great man is dead. For days after his demise the public -press was full of tales of his career. On every editorial page have -been resumes of his life, and judgment upon him, either for or against. -Much has been found to say of him that was good, and much that was -evil. As a fitting close to this biography, it is good to quote from -the New York _World_, which has published much of interest regarding -him. The paper indeed was not his friend, but we have had much from his -friends, and this opinion probably agrees with that of more persons -than does any other: - -“Look back upon his wonderful career. As sometimes an assassin is -tracked by his footsteps in the snow or by the drops of crimson that -have fallen from his fingers, dripping with the life blood of his -victim, so the life of Jay Gould can be traced by the dark, deep stains -it has left on the records of his time. We see him leaving his father’s -farm a penniless but determined lad, clerking in a country store by -day and studying mathematics at night. We follow him as he becomes a -map-maker and goes forth to survey his own and adjoining counties. We -see him hungry and unable to purchase a meal, kneeling down by the -roadside and repeating his sister’s prayer. We see him strike his -first bargain. We see him win the confidence of Zadock Pratt, the -tanner. We follow him into the forests of Pennsylvania and hear the -sound of his ax as he fells the first tree for a great tannery. We see -him scheming for the control of the property and finally forcing out -of the concern the man who had set him up in the business. We follow -him in his partnership with Leupp, the old-fashioned and honorable -merchant, of New York, and see him again scheming to gain control of -the entire business. We see him entering, even at this early day, -into wild speculations that involved his partner and threatened him -with ruin. We hear the click of the pistol with which Leupp in his -despair shot himself. We see Gould still scheming and endeavoring to -drive a sharp bargain with Leupp’s daughters and heirs. We see him -leading a gang of ruffians to drive out of the tannery the men who -were endeavoring to protect it in the interests of Leupp’s daughters. -We hear the groans of those who were wounded in that battle. We follow -the young adventurer to New York. We see him buy his first railroad on -credit and clear a handsome fortune out of the operation. We follow -him into Wall street, where for twenty years he was to reign as a king -and master. We see him in Erie, first as a follower of Daniel Drew -and afterward as president. We see him at Albany bribing senators. -We see him in New York purchasing judges, defying the law, issuing -millions of securities, not a dollar of which represented legitimate -expenditures. We see him plundering the great property of which he was -nominally the trustee. We see him and his companion, James Fisk, Jr., -the gambler and defaulter in a series of wonderful stock operations, -cornering even their former leader, Daniel Drew, and fighting with -desperation Commodore Vanderbilt. We see him organizing the greatest -and most dastardly financial conspiracy the world has ever seen, laying -its foundation in the actual bribery of a member of the President’s -family, and in an attempt to involve in the speculation the President -himself--America’s greatest captain. We hear the awful crash of Black -Friday’s earthquake, from which Gould, the arch conspirator, saved -himself, but in which hundreds were involved in ruin and the nation -in dishonor. We see him now driven out of Erie by the indignant -stockholders, headed by Gen. Sickles, Gen. Dix and Gen. McClellan. -We see him arrested for appropriating the property of the company of -which he was president, and to save himself we see him make a pretended -restitution of the misappropriated millions. We see him cornering -Northwest and raking in the wealth of his recent Wall street partner. -We can see him now fastening his fingers on the great Union Pacific -railroad, which for ten years he controlled. We can see him betraying -his trust as trustee for Kansas Pacific mortgages, for which he was -obliged years after to plead the statute of limitations in order to -save himself from prosecution. We see him securing control of the -Pacific Mail, the chief American steamship line. We see him buying for -a few million dollars from Commodore Garrison the Missouri Pacific, -‘just as a plaything,’ but which he afterward developed into a great -railroad system covering thousands of miles of territory. We see him -repeating his old Erie tactics in Wabash and we can hear the stinging -words of an unpurchasable judge as he turns his dummy receivers from -power. We see him organizing an opposition against Western Union until, -the favorable moment arriving, he secures control of the company and -by a series of extraordinary consolidations make himself the head of -a telegraph monopoly with a system covering the United States and -crossing the Atlantic Ocean. We hear the crash of another panic. There -are moments when we think the great speculator will fall--when, lo! we -see him calmly exhibiting his millions of securities to his friends. -Others fail, among them men who had been his partners and agents, but -he is safe. We see him living in a palace on the Hudson and ploughing -the waters of the river and the ocean with the most splendid yacht -ever constructed. We see him at home, the personification of domestic -honor and purity, a faithful husband and a kind father, and we see him -abroad, hated, feared and detested. Despite his record, we find the -power of his millions and of the great properties he controlled felt -in every direction. He is a factor in elections. Candidates seek him -for favors. He dictates appointments to high offices. Honorable men -who would not repeat his methods sit with him in boards of direction -and are identified with some of his enterprises. Nothing that the -fertile imagination of Balzac, Dumas or Gaboriau ever conceived equals -in dramatic incidents and sensational developments the career of this -extraordinary man. - -“It will be observed that there were two Goulds--Gould the man of -affairs and Gould the man of family. In all his domestic relations his -life was pure, his nature affectionate. No criticism can touch him in -his home life. There he was above reproach. Toward the end of his life -his dual nature seemed to blend into one. He became more conservative -in business, more solicitous, apparently, of the good will and good -opinion of his fellowmen, more careful to keep within the bounds of -strict business morality, less audacious in his methods. For should -it be forgotten that however much Gould’s public career may be justly -subject to criticism, much that he did was indirectly for the public -benefit? For instance, he developed properties that enriched wide -sections of the country. No review of his career would be complete -without this acknowledgement.” - -Jay Gould will be remembered not for the good that he has done, not -for the happiness he has given, but for the enormity of the fortune -that he acquired. If his heirs apply to better ends than he did, the -wealth that they have received from him, they may be better remembered. -If they should dissipate the fortune, it might then fall into the -possession of those who would do good with it. As it has been before, -the life and fortune of Jay Gould have been a constant example always -in readiness to be brought forward by those who find evil in our -financial system. It is to be hoped that better things will now come -from it. - - -FINIS. - - - - -Transcriber’s Notes - - -Punctuation, hyphenation, and spelling were made consistent when a -predominant preference was found in the original book; otherwise they -were not changed. - -Simple typographical errors were corrected; unbalanced quotation -marks were remedied when the change was obvious, but several remain -unbalanced. - -Illustrations in this eBook have been positioned between paragraphs -and outside quotations. 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margin:1em 0'> -This eBook is for the use of anyone anywhere in the United States and -most other parts of the world at no cost and with almost no restrictions -whatsoever. You may copy it, give it away or re-use it under the terms -of the Project Gutenberg License included with this eBook or online -at <a href="https://www.gutenberg.org">www.gutenberg.org</a>. If you -are not located in the United States, you will have to check the laws of the -country where you are located before using this eBook. -</div> - -<p style='display:block; margin-top:1em; margin-bottom:0; margin-left:2em; text-indent:-2em'>Title: The Wizard of Wall Street and His Wealth</p> -<p style='display:block; margin-top:0; margin-bottom:1em; margin-left:2em; text-indent:0;'>or The Life and Deeds of Jay Gould</p> - -<div style='display:block; margin-top:1em; margin-bottom:1em; margin-left:2em; text-indent:-2em'>Author: Trumbull White</div> - -<div style='display:block; margin:1em 0'>Release Date: August 26, 2021 [eBook #66148]</div> - -<div style='display:block; margin:1em 0'>Language: English</div> - -<div style='display:block; margin:1em 0'>Character set encoding: UTF-8</div> - -<div style='display:block; margin-left:2em; text-indent:-2em'>Produced by: Charlie Howard and the Online Distributed Proofreading Team at https://www.pgdp.net (This file was produced from images generously made available by The Internet Archive)</div> - -<div style='margin-top:2em; margin-bottom:4em'>*** START OF THE PROJECT GUTENBERG EBOOK THE WIZARD OF WALL STREET AND HIS WEALTH ***</div> - -<div class="transnote"> -<p class="center larger">Transcriber's Note</p> - -<p>Larger versions of most illustrations may be seen by right-clicking them -and selecting an option to view them separately, or by double-tapping and/or -stretching them.</p> -</div> - -<div class="chapter"> -<div class="figcenter" style="max-width: 30em;"> - <img src="images/cover.jpg" width="1269" height="1876" alt="cover" /></div> - -<div id="i_frontis" class="newpage p4 figcenter" style="max-width: 29em;"> - <img src="images/i002.jpg" width="1840" height="2847" alt="" /> - <div class="caption">Jay Gould</div></div> -</div> - -<hr /> - -<div class="newpage p4 center"> -<h1 class="wspace"> -<span class="xsmall">THE</span><br /> -<span class="smcap larger">Wizard of Wall Street</span><br /> -<span class="xsmall">AND HIS WEALTH,</span></h1> - -<p class="p2 smaller">OR</p> - -<p class="p2 larger">THE LIFE AND DEEDS OF JAY GOULD</p> - -<p class="p2 vspace wspace"><span class="smaller">BY</span><br /> -TRUMBULL WHITE.</p> - -<hr class="narrow" /> - -<p class="p4">JOHN C. YORSTON & CO., -PHILADELPHIA, PA. -1893. -</p> - -<hr /> - -<p class="newpage p4 vspace smaller"> -<span class="smcap">Copyright, 1892</span>,<br /> -By MID-CONTINENT PUBLISHING CO. -</p> -</div> - -<hr /> - -<div class="chapter"> -<p><span class="pagenum" id="Page_3">3</span></p> - -<h2 class="nobreak" id="PREFACE">PREFACE.</h2> -</div> - -<p><span class="smcap">The</span> history of any man who had been able to -distinguish himself by acquiring in his lifetime the -greatest amount of wealth ever accumulated by one -man, would necessarily be of interest, even if his -success had been won by the most ordinary of -methods or the most marvelous succession of good -fortune. But when that man is one whose career -was full of the most dramatic incidents; when -he won his wealth by feats of financial daring -which astounded the world; when, in short, that -man is Jay Gould, “The Wizard of Wall Street,” then, -indeed, the interest is most absorbing. Jay Gould -has been more prominently before the people of -the country for the last few years than has any other -man whose prominence depended upon the magnitude -of his fortune. In his history is much to be -learned, both for imitation and avoidance, by every -American. This volume contains, not only a complete -account of the life and deeds of Jay Gould -for the general reader, but also much for the -student of financial affairs and Wall street methods. -The particular effort of the author has been to secure -its absolute accuracy and to make it entirely -reliable. The present absorbing interest in the -career of the great financier, and the fact that every -source of information concerning him is being -sought most eagerly, makes the work particularly -timely.</p> - -<p class="sigright b0">TRUMBULL WHITE.</p> - -<p class="p0"><span class="smcap">Chicago</span>, December 15, 1892.</p> - -<hr /> - -<div class="chapter"> -<h2 class="nobreak" id="CONTENTS">CONTENTS.</h2> -</div> - -<table id="toc" summary="Contents"> -<tr class="smaller"> - <td class="tdr">CHAP.</td> - <td> </td> - <td class="tdr">PAGE</td> -</tr> -<tr> - <td class="tdr top">I.</td> - <td class="tdl">Jay Gould a Great Man</td> - <td class="tdr"><a href="#toclink_9">9</a></td> -</tr> -<tr> - <td class="tdr top">II.</td> - <td class="tdl">Youth and Ancestry of Jay Gould</td> - <td class="tdr"><a href="#toclink_18">18</a></td> -</tr> -<tr> - <td class="tdr top">III.</td> - <td class="tdl">Gould as Surveyor and Historian</td> - <td class="tdr"><a href="#toclink_29">29</a></td> -</tr> -<tr> - <td class="tdr top">IV.</td> - <td class="tdl">Gould and the Tannery War</td> - <td class="tdr"><a href="#toclink_37">37</a></td> -</tr> -<tr> - <td class="tdr top">V.</td> - <td class="tdl">Gould’s Romantic Marriage and First Railroad</td> - <td class="tdr"><a href="#toclink_49">49</a></td> -</tr> -<tr> - <td class="tdr top">VI.</td> - <td class="tdl">Gould’s Assault upon Erie</td> - <td class="tdr"><a href="#toclink_58">58</a></td> -</tr> -<tr> - <td class="tdr top">VII.</td> - <td class="tdl">Gould’s Victory and Final Defeat in Erie</td> - <td class="tdr"><a href="#toclink_73">73</a></td> -</tr> -<tr> - <td class="tdr top">VIII.</td> - <td class="tdl">The Gold Conspiracy</td> - <td class="tdr"><a href="#toclink_88">88</a></td> -</tr> -<tr> - <td class="tdr top">IX.</td> - <td class="tdl">Culmination of Conspiracy—Black Friday</td> - <td class="tdr"><a href="#toclink_106">106</a></td> -</tr> -<tr> - <td class="tdr top">X.</td> - <td class="tdl">Gould and the Western Railway Systems</td> - <td class="tdr"><a href="#toclink_132">132</a></td> -</tr> -<tr> - <td class="tdr top">XI.</td> - <td class="tdl">Gould and the Telegraph Monopoly</td> - <td class="tdr"><a href="#toclink_151">151</a></td> -</tr> -<tr> - <td class="tdr top">XII.</td> - <td class="tdl">Gould and the Manhattan Elevated</td> - <td class="tdr"><a href="#toclink_161">161</a></td> -</tr> -<tr> - <td class="tdr top">XIII.</td> - <td class="tdl">The Life of a Wall Street King</td> - <td class="tdr"><a href="#toclink_170">170</a></td> -</tr> -<tr> - <td class="tdr top">XIV.</td> - <td class="tdl">The King is Dead</td> - <td class="tdr"><a href="#toclink_181">181</a></td> -</tr> -<tr> - <td class="tdr top">XV.</td> - <td class="tdl">Jay Gould Laid to Rest</td> - <td class="tdr"><a href="#toclink_193">193</a></td> -</tr> -<tr> - <td class="tdr top">XVI.</td> - <td class="tdl">Personal Characteristics of Jay Gould</td> - <td class="tdr"><a href="#toclink_214">214</a></td> -</tr> -<tr> - <td class="tdr top">XVII.</td> - <td class="tdl">The Family of Jay Gould</td> - <td class="tdr"><a href="#toclink_226">226</a></td> -</tr> -<tr> - <td class="tdr top">XVIII.</td> - <td class="tdl">The Great Fortune and Its Inheritors</td> - <td class="tdr"><a href="#toclink_245">245</a></td> -</tr> -<tr> - <td class="tdr top">XIX.</td> - <td class="tdl">Jay Gould’s Relations with the Public</td> - <td class="tdr"><a href="#toclink_264">264</a></td> -</tr> -<tr> - <td class="tdr top">XX.</td> - <td class="tdl">A Chapter of Anecdotes</td> - <td class="tdr"><a href="#toclink_280">280</a></td> -</tr> -</table> - -<hr /> - -<div class="chapter"> -<p><span class="pagenum" id="Page_7">7</span></p> - -<h2 class="nobreak" id="ILLUSTRATIONS">ILLUSTRATIONS.</h2> -</div> - -<table id="loi" summary="Illustrations"> -<tr class="small"> - <td> </td> - <td class="tdr">PAGE</td> -</tr> -<tr> - <td class="tdl"><span class="smcap">Portrait of Jay Gould</span></td> - <td class="tdr l2"><a href="#i_frontis"><i>Frontispiece</i></a></td> -</tr> -<tr> - <td class="tdl"><span class="smcap">Young Gould in His Father’s Dairy</span></td> - <td class="tdr"><a href="#i_18">18</a></td> -</tr> -<tr> - <td class="tdl"><span class="smcap">Jay Gould as a Surveyor</span></td> - <td class="tdr"><a href="#i_29">29</a></td> -</tr> -<tr> - <td class="tdl"><span class="smcap">Canvassing for His Book, “The History of Delaware County”</span></td> - <td class="tdr"><a href="#i_32">32</a></td> -</tr> -<tr> - <td class="tdl"><span class="smcap">The Tannery War in Pennsylvania</span></td> - <td class="tdr"><a href="#i_37">37</a></td> -</tr> -<tr> - <td class="tdl"><span class="smcap">Gould’s First Glimpse of His Future Wife</span></td> - <td class="tdr"><a href="#i_49">49</a></td> -</tr> -<tr> - <td class="tdl"><span class="smcap">The Men of “Black Friday”</span></td> - <td class="tdr"><a href="#i_88">88</a></td> -</tr> -<tr> - <td class="tdl"><span class="smcap">“Black Friday” in Wall Street</span></td> - <td class="tdr"><a href="#i_106">106</a></td> -</tr> -<tr> - <td class="tdl"><span class="smcap">Gould Before the Congressional Committee</span></td> - <td class="tdr"><a href="#i_132">132</a></td> -</tr> -<tr> - <td class="tdl"><span class="smcap">Gould Fainting at Directors’ Meeting in Russell Sage’s Office</span></td> - <td class="tdr"><a href="#i_161">161</a></td> -</tr> -<tr> - <td class="tdl"><span class="smcap">Gould’s Birthplace and Palace on the Hudson</span></td> - <td class="tdr"><a href="#i_170">170</a></td> -</tr> -<tr> - <td class="tdl"><span class="smcap">Jay Gould’s Death-bed</span></td> - <td class="tdr"><a href="#i_181">181</a></td> -</tr> -<tr> - <td class="tdl"><span class="smcap">Funeral of Jay Gould</span></td> - <td class="tdr"><a href="#i_193">193</a></td> -</tr> -<tr> - <td class="tdl"><span class="smcap">Where Jay Gould Rests</span></td> - <td class="tdr"><a href="#i_200">200</a></td> -</tr> -<tr> - <td class="tdl"><span class="smcap">A Family Group</span></td> - <td class="tdr"><a href="#i_226">226</a></td> -</tr> -<tr> - <td class="tdl"><span class="smcap">Portrait of George Gould</span></td> - <td class="tdr"><a href="#i_245">245</a></td> -</tr> -<tr> - <td class="tdl"><span class="smcap">Jay Gould’s Private Car and Yacht, “Atalanta”</span></td> - <td class="tdr"><a href="#i_264">264</a></td> -</tr> -</table> - -<hr /> - -<div id="toclink_9" class="chapter"> -<p><span class="pagenum" id="Page_9">9</span></p> - -<h2 class="nobreak" id="CHAPTER_I">CHAPTER I.<br /> - -<span class="subhead">JAY GOULD A GREAT MAN.</span></h2> -</div> - -<p class="drop-cap"><span class="smcap1">In</span> every walk of human life, in every imaginable -human occupation, that man who stands at the -very top, who is superior to all others in that particular -occupation, is of necessity a great man. No -matter how humble that occupation may be, absolute -superiority in it, in itself means greatness. The -time once was when commercial eminence was considered -to belong rather to the lower classes, and -was, indeed, despised by those who thought themselves -to be of knightlier blood than their fellows. -The Crusades, the Renaissance, the discovery of -America, and the impetus these gave to voyage and -trade and commerce, were potent factors in changing -all of this. For the last few centuries, commercial -ability, financial capacity, knowledge of how to -manipulate men and measures in a way to increase -fortune, and so to secure more of what fortune will -buy, have been more and more appreciated, until -to-day aristocracy and royalty clip coupons, families -whose ancestors trace from the Conqueror invest in -stocks and draw dividends, and the bluest blooded -of all great families engage with avidity in the struggle -for business and wealth.</p> - -<p>Since royalty and aristocracy thus deign to enter<span class="pagenum" id="Page_10">10</span> -the lists of business competition, does it not become -more true that that man is really great, who excels -in money-making capacity every other individual in -the world, who wins the prize from all his high competitors, -and in his lifetime, by his own acumen and -manipulation, creates a greater fortune, adds more -to his wealth, than has ever any other person in the -world? That is what has been done by Jay Gould, -“The Wizard of Wall Street,” who has just been -taken from the possession of this enormous wealth, -and whose death has awakened such universal interest -in his life, his history and his personality.</p> - -<p>It is hard to realize what an enormous distinction -is in the fact of being the richest man in the world. -For Gould not only created his fortune, but he made -it greater than is possessed by any other individual -in the world. It is true that there are families, the -Vanderbilts, the Astors, and the Rothschilds, whose -aggregated wealth far exceeds the fortune left by -Mr. Gould. But no individual of one of those families -possesses an amount nearly equal to that represented -by the Gould properties. Mr. Gould has -been absolutely unrivaled in his position as a money-maker. -Though he has met with reverses at times, -and was once on the verge of actual bankruptcy, -these have been due, in slight degree, to the action -of his opponents in the market, but rather to some -relaxation of his own energies, or some unforeseen -combination of circumstances. The men who have -been against him, with few exceptions, have lost -while he has won. To be wealthy and to play with<span class="pagenum" id="Page_11">11</span> -the Gould securities, it has been necessary to follow -him, not to oppose.</p> - -<p>In downright dramatic interest, in its exhibition -of results achieved through the exercise of intellectual -qualities which were themselves an achievement, -and in the examples which it furnishes of the consistent -development of traits which can scarcely be -considered as the dower of heredity, and yet were -already apparent at the outset, the life story of Jay -Gould surpasses by far the histories of the great financiers, -speculators and railway managers with whom -he was either directly or remotely associated in a -career which practically embraced the whole modern -phase of financial operation. Like Drew, Vanderbilt -and Fisk, he was of humble origin and began at -an early age to carve out his fortunes on lines which -lay far from those to which his youthful surroundings -seemed to direct him. But his first exhibitions -of independent and original activity were directed -toward the acquiring of an intellectual equipment -of an entirely different order from that which his -great rivals in Wall street boasted. Nothing is -plainer than that he was a born money-maker, but it -is easily possible that if early success in this direction -had not encouraged him to bend his energies -solely to the acquisition of wealth, he might have -devoted himself not only successfully, but much to -his own satisfaction, to higher pursuits. Though he -was an absolutely tireless worker in the field of -money-getting, one can scarcely study his operations, -whether as a mere speculator or as the creator<span class="pagenum" id="Page_12">12</span> -and developer of great industrial enterprises, without -becoming convinced that the incitement to many -of his colossal operations was quite as much a love -for intellectual occupation as for money. Human -nature is generally set down as a universal possession, -and Mr. Gould was yet a young man when the -scope of his financial operations was such as to give -clear evidence that the material things of this world -were abundantly cared for in his possessions. He -had, of course, the instincts of a born speculator, -yet his was not the disposition to let results depend -simply on the accidental fall of the dice, or the turn -of a card. He loved hazard, but he loved better to -compel chance to enter the channels he had dug for -it. It would be folly to deny the vast value of his -work in the development of the Western and Southwestern -States, but perhaps as great a folly to attribute -a philanthropic or patriotic motive to it.</p> - -<p>In a history of the life of such a man as Jay -Gould, it is well that certain of his personal characteristics -and certain of the chief events of his career -be summarized before a complete study of his biography -and character is made. It is thus possible better -to understand both events and personal qualities.</p> - -<p>The education which Jay Gould acquired through -his own energies as a youth, found its best application -in this work of development. In his purely -speculative adventures he was aided by a disposition -whose traits, as has already been intimated, were -formed in his youth or early manhood. It is impossible -to contemplate without astonishment and even<span class="pagenum" id="Page_13">13</span> -admiration, the spectacle of so stable a character as -one must admit Mr. Gould’s to have been, fixed in boyhood -and remaining unchanged all through a career -which extended from a condition of the most modest -kind (not to call it absolute poverty) to a position -from which practically he ruled the financial world -of this continent and materially affected the fortunes -of the other. With untold wealth at his command, -he was as simple in tastes, as unaffected in -manner, as abstemious in habits, as industrious, as -self-dependent and self-reliant, as when he set out in -boyhood to make himself a rich man. Nor did any -of his less amiable characteristics undergo a less -change. In some of his first business ventures, can -be read the same disposition for silent intrigue, the -same secretiveness touching his intentions, the same -subtlety and elaborateness of plan, and the same indifference -to the feelings or comments of others, as -marked the tremendous operations which are the -climaxes of his purely speculative career—the war -over Erie and the gold operations which culminated -in that memorable and deplorable day which is written -in history as “Black Friday.”</p> - -<p>There was, perhaps, never a time in Jay Gould’s -career when it was possible to estimate his wealth -with anything approaching correctness. His secretive -disposition stood in the way of a general acquaintance -with the outcome of his many ventures. -Long after he had gained control of the Wabash -system of Railways, the Manhattan Elevated and -the Western Union Telegraph Company, during a<span class="pagenum" id="Page_14">14</span> -little flurry in Wall street, in which everybody -thought the finger of Jay Gould was hidden, but -nobody knew, a broker sagely observed, “Mr. Gould -has many properties, but a brass band is not one of -them.” He never went forth trumpeting his affairs. -Moreover, his wealth always consisted of stocks and -bonds which were subject to the fluctuations of the -market, and which unquestionably derived a considerable -proportion of their value from the fact that -he controlled the property which they represented. -Once, however, he put aside his natural secrecy and -made an exhibition of his wealth in order to quiet -some annoying reports that were current touching -his financial condition. This was in March, 1882, -when he spread the contents of his strong box -before his astonished visitors.</p> - -<p>Mr. Gould’s secretiveness was exhibited quite as -strikingly in his benefactions as his speculations. -He never achieved a reputation as one in the habit -of doing good to his fellowmen, and yet few rich -men were more charitable than he. Only once did -he forego his customary reticence, and then it was -in a time of great public calamity. Yellow fever -was raging in Memphis, and subscriptions were -being raised in all the large cities of the country. -Gould did not wait, but telegraphed to the authorities -of Memphis to draw on him for all the money -they needed. As a rule, like William H. Vanderbilt, -he dispensed his benefactions through a trustee. -This, during the last few years of his own life, was -Thurlow Weed.</p> - -<p><span class="pagenum" id="Page_15">15</span></p> - -<p>“I am Mr. Gould’s philanthropical adviser,” said -this remarkable man on one occasion in 1879; -“whenever a really deserving charity is brought to -my attention, I explain it to Mr. Gould. He always -takes my word as to when and how much to contribute. -I have never known him to disregard my -advice in such matters. His only condition is that -there shall be no public blazonry of his benefactions. -He is a constant and liberal giver, but doesn’t let -his right hand know what his left hand is doing. -Oh, there will be a full page to his credit when the -record is opened above.”</p> - -<p>It should also be added to the list of his virtues, -that he abstained absolutely from spirituous liquors, -including wine, and never used tobacco. He was, -however, fond of highly-spiced food, and it is said -that indulgence in such viands caused the stomachic -disarrangements which forced him to devote himself -in 1888 to the pursuit of health. He loved flowers -exceedingly, and in his country seat at Irvington-on-the-Hudson -built up one of the finest conservatories -in the world.</p> - -<p>Jay Gould’s career was not a colorless one, but -was full of episode and variety. He was a genuine -American in that he had engaged, before he was -out of his teens, in some dozen pursuits, which number -he doubled in the next few years. Milking -twenty cows in his father’s dairy; clerking in a -country store; running a hardware shop; learning -the tinner’s trade; working in a country newspaper -office, and writing a history of Delaware county,<span class="pagenum" id="Page_16">16</span> -were among his earlier employments. And then -came his enlistment in a surveying corps and his -experience in map drafting, which led up to the -leather industry. This chapter in Mr. Gould’s -career is a sensational one. His enlargement of -the tannery business in Pennsylvania, his establishment -of a village named for himself, Gouldsborough, -and of a bank of which he was director, were the -business portions of the sensation. The suicide of -his partner and the war for possession of the tannery, -between two bands of roughs fighting one for -Gould and one for his partner’s estate, were sensations -of another kind. Next Mr. Gould went into -the railroad business, drifting there by the aid of his -father-in-law, who wanted to make the best of a -marriage which he had opposed. From that time -to this, Mr. Gould has been prominently before the -public in financial operations, and his history is the -history of Wall street. Opinions of Mr. Gould -have been just as varied as his own pursuits. There -are those who laud him to the skies for the success -he had in creating his enormous fortune, and who -think him the sum of all good things. There are -many others who think of him as being simply a -close-fisted, unscrupulous, selfish business man of -undoubted ability, but with no thought except to -add to his wealth by whatever means might be -necessary at the expense of others. And there is -another large class of those who consider Mr. Gould -to have been a type of all that is worst in Americans, -a man who wrecked fortunes and honor of<span class="pagenum" id="Page_17">17</span> -others to add to his own, who purchased legislatures -at will whenever he had anything to desire from -them, and who had absolutely no redeeming traits -of character. It will be our effort to show what -justification there may be for each opinion. Whatever -other merit may be claimed for this modest -biography of a rich man, it is certainly to be considered -as entirely fair, with no bias for or against -its subject, and no inclination to do anything but -justice to his memory. No effort has been spared -to secure reliable, accurate and exhaustive information -on the history and personal characteristics of -Jay Gould. Inasmuch as great influence is exerted -on every man’s life by those business associates -most closely connected with him, attention has been -given to those other noted financiers whose association -with the “wizard” have been the nearest. The -ever-present influence of ancestry and immediate -family make that subject also an essential one to -the true understanding of the man. The history of -“Black Friday” and its disastrous consequences are -treated in full, also the investigation of the Senatorial -Committee and Gould’s connection with Missouri -Pacific and Western Union. His domestic life, -his yacht, his home on the Hudson, his magnificent -conservatory, all indications of the spirit and tastes -of the man, are also given careful attention.</p> - -<p>The early life of such a man must perforce afford -an interesting study, and no apology is necessary -for a pretty full account of Jay Gould’s boyhood, -youth and early manhood.</p> - -<hr /> - -<div id="toclink_18" class="chapter"> -<p><span class="pagenum" id="Page_18">18</span></p> - -<h2 class="nobreak" id="CHAPTER_II">CHAPTER II.<br /> - -<span class="subhead">YOUTH AND ANCESTRY OF JAY GOULD.</span></h2> -</div> - -<p class="drop-cap"><span class="smcap1">Many</span> who knew Mr. Gould intimately are in the -habit of asserting that his origin must have been -Hebraic. No one pretends to say how many generations -back the Jewish blood was in the family, or -that Mr. Gould was aware of its existence in him. -But both his names, Jason, or Jay, and Gould, served -to strengthen this belief in those who held it. The -twisted form, “Gould,” was suspected of being -changed from “Gold,” which is a common prefix in -the names of inanimate and natural objects which -certain Jews in Europe were compelled to adopt as -surnames in one period of their history. His habits -of thought and his extraordinary intellect were both -Jewish, these people assert, with how much or how -little basis in the actual fact of his origin, no one -can ever decide.</p> - -<p>Mr. Gould was certainly American in the character and -extent of his self-creation and success. Born -of poor parents, on a poorer farm, he began to make -money to pay his way through school, and he was a -partner in business enterprises while yet a lad.</p> - -<div id="i_18" class="figcenter" style="max-width: 27em;"> - <img src="images/i021.jpg" width="1692" height="2524" alt="" /> - <div class="caption">YOUNG GOULD IN HIS FATHER’S DAIRY.</div></div> - -<p>But so far as Mr. Gould himself has been able -to decide, he came of Puritan stock than which none -is more diametrically removed from the Hebraic.<span class="pagenum" id="Page_19">19</span> -He was born on May 27, 1836, in the little post-village -of Roxbury, Delaware county, New York -state. Nearly half a century before, while Delaware, -Ulster and Otsego counties were yet one, his -grandfather came with half a dozen Puritan families -from Fairfield county, Connecticut, and took up -land near the land which became Jay Gould’s birth-place. -This grandfather was Captain Abram Gould. -He had been a Revolutionary soldier and was -described as a “grim, earnest, honest man.” To him -was born in 1792, a son who was named John B. -Gould, the first male child born in the new settlement. -John B. grew to manhood, was three times -married, and Jay was his son by his first wife. The -boy’s mother was a pious woman, a regular attendant -of the Methodist services held in the “yaller meetin’ -house,” where Jay also imbibed such religious notions -as found a foothold in a nature not much given to -the contemplation of spiritual things. The father -was a small farmer and kept a dairy of twenty cows.</p> - -<p>Until he was fourteen years old Jay lived on the -farm, picking up such a meager education as attendance -from four to five years at a district school, -which was closed during the greater part of the -year, afforded. This school was finally closed altogether -by the breaking out of the “Anti-rent War,” as -it was called, an uprising of the farmers against the -efforts of persons who claimed to have bought the -land from the Indians to collect an annual rental. -Jay was dissatisfied with farm life, which indeed -offered nothing, under the circumstances, to satisfy<span class="pagenum" id="Page_20">20</span> -his boyish ambitions. The reasons of his dissatisfaction -he once set forth as follows:</p> - -<p>“As I was the boy of the family I generally -brought the cows in the morning and assisted my -sister to milk them and drove them back, and went -for them again at night. I went barefooted and I -used to get thistles in my feet, and I did not like -farming in that way. So I said one day to my -father that I would like to go to a select school that -was some twelve or fifteen miles from there. He -said all right, but that I was too young. I said to -him that if he would give me my time, I would try -my fortune. He said all right, that I was not worth -much at home and I might go ahead. So next day -I started off. I showed myself up at this school, -and finally I found a blacksmith who consented to -board me, as I wrote a pretty good hand, if I could -write up his books at night. In that way I worked -myself through this school.”</p> - -<p>During these years of the embryo financier, he -was a pale, slender, delicate little fellow, studiously -inclined and disliking the customary sports as much -as the toil of the people around him. It is remembered -of him that he was different from the other -boys with whom he associated in school. He was not -what is generally termed a manly boy. He kept out -of the rough good-natured games. He preferred to -remain indoors, and at noontime cuddled up in -some remote corner of the school-house, busy about -nobody knew what. When approached by the -others with invitations to come and join them, he<span class="pagenum" id="Page_21">21</span> -would refuse. If in banter the boys attempted to -force him to join them, he would make a great outcry, -and breaking away from them, would sit and -mope until the school was called to order. Then he -would go to the master’s chair and enter a tearful -complaint against his enemies. The master would -thrash the other fellows, and little Gould would be -tickled.</p> - -<p>It was because his father became unpopular in -the village by opposing the anti-rent movement at -that time, that young Gould was obliged to leave -the school nearest his home. He waited until he was -fourteen years old. Then, after pondering over his -prospects, he formed a resolution, and at once put -it into practice by asking his father’s permission to -leave home, saying that he was confident in his -ability to take care of himself. His father was inclined -to be amused at the boy’s request, which was -made with much earnestness, and thinking that it -was a mere passing whim, returned a careless -affirmative. The family were astounded, however, -the next morning, when little Jay entered the breakfast -room equipped for his journey out into the -world. He ate his breakfast quietly and, arising -from the table, held out his hand to his father with -a hearty “good-bye, father.” His father was amazed -at his determination, and his stepmother and sisters -entreated him tearfully to remain at home. Unshaken -in purpose, however, the future “Wizard of -Wall Street” hastily caught up his little bundle and -left his parent’s house. His bundle contained a<span class="pagenum" id="Page_22">22</span> -spare suit of clothes, and he had fifty cents in his -pocket.</p> - -<p>Young Jay trudged hopefully through the -mountainous road between Roxbury and Hobart, -where there was an academy that he had long desired -to enter. He went directly to the principal of -the academy and told him of his anxiety to obtain -an education and his desire to get employment that -he might earn money to pay the tuition fees. The -principal became interested in the boy and secured -for him the position of bookkeeper in a store kept -by the village blacksmith. This school was kept by -Mr. Oliver, and Jay’s course there was completed in -1851. During this year, however, he must have -made considerable progress in mathematics, in spite -of the fact that it used to be related of him in the -neighborhood that he grew tired once of going to -school, and was locked up one morning in the cellar -by his father as a measure of correction, and forgotten -until his non-return in the evening caused -comment. The taste for mathematics it was that -opened up to him the first steadily lucrative employment -in which he became engaged, and also led -him, by easy steps, into the career which destiny -seemed to have marked out for him.</p> - -<p>On leaving school he got a place as a clerk in a -tin shop in Hobart, and at fifteen years of age was a -partner in and manager of the business. Not only -that, but this amazing boy was up at daybreak every -day to pursue the study of surveying and such engineering -as he found books and instruments to help<span class="pagenum" id="Page_23">23</span> -him to. Moreover, when the elder Gould sold his -farm, young Jay took him into the tin shop on a -salary.</p> - -<p>Innumerable anecdotes are related of Jay’s early -life. All the world has heard the mouse-trap story. -It was in 1853, when the World’s Exhibition was -held in New York, that young Gould, then about -seventeen years of age, is said to have made his -first visit to the metropolis in which he was to become -such a power. He carried with him a showy -mahogany case, containing an invention which the -boy hoped would bring him fame and fortune. The -invention was a mouse-trap. He entered a horse-car -and, leaving his valuable model on the seat, -stepped outside and stood on the platform, where -he could view the glories of the great city. The box -was picked up by a thief, but not without the observation -of young Gould, who pursued the rascal and -captured him. This exploit was related next day -in the <i>Herald</i>, this being the first newspaper reference -to Gould, whose renown has since filled columns -of the daily press for years. The mouse-trap was a -success, but its inventor has been far more successful -with his future traps, which he laid for speculative -mice, and with which he caught them all his life.</p> - -<p>That Gould’s great fortune was not the result of -a streak of luck, but of strict attention to business -and hard work, is clearly proved in all the events -of his life. His plans were the result of careful -thought and they were carried out by hard work. -The man in whose family young Gould worked for<span class="pagenum" id="Page_24">24</span> -his board when going to school thus speaks of his -conduct at that early date:</p> - -<p>“He was an excellent boy. His habits were -good and he devoted most of his evenings to study. -He was always the first one up in the morning, and -he had the fire burning and the tea-kettle boiling -by the time my wife was ready to prepare breakfast.”</p> - -<p>It was while working in the tin store, shortly after -this, that Gould took part in a transaction in which one -cannot fail to recognize one of the distinctive traits -of his future business career. If the king of Wall -street never went hunting for snipes with a brass -band, neither did the country lad. The merchant -for whom he was working also did a real-estate business. -His employer was negotiating for the purchase -of some property belonging to an estate in -chancery, and Jay carried on the correspondence for -him. By virtue of his position he thus learned the -particulars of a bargain which his employer desired -to make on the piece of land. The executor demanded -twenty-five hundred dollars, but the would-be -purchaser offered only two thousand dollars. Jay -undertook a little investigation on private account, -and became convinced that the property was bound -to appreciate in value. While the negotiations were -in progress, Jay borrowed twenty-five hundred -dollars of his father, and outbidding his employer, -quietly scooped in the property. He had the deed -made out in his father’s name, and within two weeks -sold out for four thousand dollars. It is said that<span class="pagenum" id="Page_25">25</span> -his employer looked at the transaction in the light -of a breach of confidence. The result was that it -caused a separation between the merchant and his -clerk, and broke up a little romance which is said to -have existed between the young speculator and a -young female member of his employer’s family.</p> - -<p>This was practically the end of his life and associations -with the little villages, Roxbury and Hobart, -though his map work and surveying, in the -following years, were largely done in the surrounding -counties. As a matter of fact, he had exhausted -the possibilities for him in those country villages. -He had squeezed what knowledge and profits were -to be obtained there, and was ready to seek new -worlds to conquer. While the little towns furnished -him no inducements for permanent residence, and -but little of the start toward his colossal fortune, -nevertheless, the influences that the towns and their -people exerted on his early life must be credited -with much of the better business qualities, of perseverance -and method that gave much of his success -in later years.</p> - -<p>Gould’s mother died in 1841, when he was but -five years old. His father died in 1866, and some -years ago their distinguished son erected over their -graves a handsome monument in the village cemetery. -The elder Gould had a farm of about one -hundred and fifty acres, and was esteemed by his -neighbors as a worthy citizen. The house in which -Jay was born and spent his boyhood is described as -a “two-story, box-like frame building covered with a<span class="pagenum" id="Page_26">26</span> -coating of white paint.” In July, 1880, Jay Gould -visited his birth-place and also Hobart, where he went -to school. He used to walk the entire distance to -school every Monday morning, returning Saturdays. -He was enthusiastically received by the inhabitants -at the time of his visit, as the most noted man ever -born in that region. When he visited the old house, -it is to be wondered if he recalled the first instance -in which he ever showed a combative spirit of bravery. -It was during the Anti-rent War, when a party -of anti-renters visited his father’s house to compel -him to cease paying rent, John B. Gould and a -neighbor, Hiram Moore, belonging to the conservative -farmers, known as “high-renters.” The “rebels” -were masked and in bad temper, but John B. Gould -stood out stoutly for his rights, while ten-year-old -Jay, who stood in the doorway at his side, urged his -father to shoot his assailants down. John B., like -the son in manhood, was small of stature, and had -the additional misfortune of having one leg shorter -than the other, but he probably inherited some of -the rugged qualities of grim Captain Abram, and -these were likely to be accentuated by the struggle -for existence in the rough sterile country of their -habitation. The vigilance committee, at any rate, left -the little man unharmed, though they promptly proceeded -to tar and feather his neighbor, Hiram Moore.</p> - -<p>These anti-rent troubles were caused by the refusal -of the occupants of certain large tracts of land -in Delaware and adjacent counties, to pay an annual -rental to persons who claimed to have purchased<span class="pagenum" id="Page_27">27</span> -the land from the Indians. Such rentals had been -paid with a fair degree of regularity up to 1844, -when the farmers rebelled, declaring that the exactions -were oppressive and unlawful. In some cases -the rent exacted had consisted of so many bushels of -wheat, a certain number of fowls or a few days’ labor -per year. In other cases cash payments were demanded.</p> - -<p>Secret organizations were formed in Delaware -county, and some of the aggressive movements were -particularly directed toward John B. Gould, who declined -to join the anti-rent party. The officers of the -law were resisted in their attempts to levy on or sell -property for non-payment of rent. The anti-rent -men claimed that the land really belonged to the -Indians, and they armed themselves and went about -the country disguised as Indians. They carried -tomahawks and applied tar and feathers to several -men whom they accused of persecuting them. Mr. -Gould had in his possession for many years one of -the tomahawks that was brandished by the Roxbury -“Indians,” and he could readily recall the -events that preceded and followed the battle of -Shacksville, in which a body of armed anti-renters, in -resisting a sheriff’s posse, killed several men. Gov. -Silas Wright was then obliged to declare several -counties in a state of insurrection and many arrests -were made. The state authorities overcame armed -resistance, but the anti-rent men carried their grievance -into politics and succeeded in electing John -Young for Governor over Silas Wright.</p> - -<p><span class="pagenum" id="Page_28">28</span></p> - -<p>Mr. Gould used to tell his intimate friends that -whatever nerve he possessed he inherited from his -father.</p> - -<p>While working at the tin shop, young Gould -retained all his fondness for mathematics, and -mastered several of the best authorities on surveying, -trigonometry and engineering, besides reading -a course of history. He rose at four in the morning, -and devoted the time he could call his own to reading -and study. Having made a particularly nice tin -whistle, he invited the boys of the town to join him -in amateur surveying expeditions, and with a borrowed -compass and other necessary instruments, the -boys acting as flagmen and chain-bearers, he soon -became an expert surveyor. In the tin business he -made himself so useful that at the age of fifteen he -was a full partner in the concern, and when he -visited Albany and New York to purchase material, -he succeeded in opening accounts with Phelps, -Dodge & Co. and other firms well-known to the -public.</p> - -<p>It was at this point in young Gould’s career that -the unvarying routine of life in a tin shop became too -monotonous, and he abandoned it for a pursuit that -would at least enable him to see something of the -surrounding country, and possibly be more profitable. -He decided to make use of the knowledge that he -had gained and become a surveyor.</p> - -<div id="i_29" class="figcenter" style="max-width: 29em;"> - <img src="images/i034.jpg" width="1798" height="2564" alt="" /> - <div class="caption">JAY GOULD AS A SURVEYOR.</div></div> - -<hr /> - -<div id="toclink_29" class="chapter"> -<p><span class="pagenum" id="Page_29">29</span></p> - -<h2 class="nobreak" id="CHAPTER_III">CHAPTER III.<br /> - -<span class="subhead">GOULD AS SURVEYOR AND HISTORIAN.</span></h2> -</div> - -<p class="drop-cap"><span class="smcap1">The</span> tin shop was profitable but slow, and with an -outcropping of the avidity which he afterward -showed, he sought for something more lucrative. In -1852 he transferred his interest to his father and -arranged to take charge of a surveying party at -twenty dollars a month. Gould had heard of a man -in Ulster county who was looking for an assistant. -He was making a map of that county and Gould -wrote to him. When he left home to take the -position, his father offered him money, but he left -all his capital in the store, burned his ships behind -him, and took only money enough to pay his fare -to the place where the new position was to begin. -His new employer started him out to make the -surveys, to see where the roads were and to locate -the residences. He also instructed young Gould to -get trusted for his living expenses along the way, -and that he would pay them following after him. -Two or three days later, Gould ran against the first -objection to this arrangement from one of his entertainers, -who knew that the employer had already -failed three times. He agreed to trust young Gould -but would not trust the employer. The boy -wandered on after this rebuff until three o’clock,<span class="pagenum" id="Page_30">30</span> -before making an effort to get his dinner. His -wretchedness and its relief are interestingly told in -a letter that Mr. Gould wrote to a friend some years -later.</p> - -<p>“I was out of money—that is to say, every cent I -had at my command was a ten-cent piece, with -which I had determined not to part. Fall was approaching, -and, unless our surveys were completed -before winter set in, the final completion of our -enterprise would be necessarily delayed until -another season, subjecting us to additional expense, -which I feared would prove hazardous to the enterprise. -I was among entire strangers and consequently -without credit. I could not spare time to -go to Delaware county after funds, and I had not -money to reach there. If tears had been coin my -empty coffers would soon have been amply replenished. -In this emergency a welcome expedient -accidentally presented itself. I was prosecuting my -surveys at this time in the town of Shawangunk, -and, while the tears were even trickling down my -cheek, a farmer came running after me and asked -me if I would not return with him to dinner and -make a ‘noon mark,’ which is a north and south -line, to indicate, by the shadow caused by the rays -falling against an upright object and striking the -line, the hour of midday. I accepted the invitation -with pleasure, as a couple of crackers was all I -had eaten since the preceding night, and I had -been working since daylight and was consequently -hungry and faint. After dinner I made the noon<span class="pagenum" id="Page_31">31</span> -mark, and, turning to leave, the farmer asked me -my bill. I replied that he ‘was welcome.’ He -insisted, however, on paying me a half dollar, which -he assured me a neighbor had paid for one, which I -accepted, and started on my way, and had I that -moment discovered a continent it would have -afforded me less joy. I saw that I could turn this -discovery to practical account, and I felt already -half rich, and I prosecuted my labors with a lighter -step than for many a day. The fame of my noon -marks preceded me, and the applications from the -farmers were numerous. By this means I paid all -the expenses of the surveys and came out at the -completion with six dollars in my pocket.”</p> - -<p>In the early part of this embarrassment he had -no overcoat and sometimes traveled forty miles a -day on foot. His employer failed completely and -Gould continued the business for himself. Jay proposed -to the two other young surveyors, who had -also been engaged on the work, to complete it on -their own account. The other two young fellows -had money, and when the map was ready for the -engraver, Jay, finding his colleagues anxious to put -their names on it, sold his interest to them for $500. -With that capital he undertook similar surveys of -Albany and Delaware counties, and was successful -in turning out satisfactory maps of those regions. -He sold enough maps to bring his capital up to -$5,000. The accuracy of his survey of Ulster county -in the meantime, had attracted the attention of John -Delafield, in Albany, who applied to the Legislature<span class="pagenum" id="Page_32">32</span> -for aid in the completion of a topographical survey -of the entire state by Mr. Gould. Mr. Delafield -died before any material progress was made in this -work. His application to the Legislature was not -successful. Some particulars of interest in regard to -the map-making business are related by Oliver J. -Tillson, one of his partners in the map-making enterprise, -after the failure of the man who had first -employed him in the business. Mr. Tillson confirms -Mr. Gould’s account and tells of the bargain in -which the latter sold out to his partners. Here is a -copy of a receipt given by Gould on that occasion:</p> - -<div class="blockquot"> -<p class="sigright"> -<span class="smcap">December 27, 1852.</span> -</p> - -<p>Received of Oliver J. Tillson and Peter H. Brink ninety -dollars and wheel in full of all debts and demands and dues -against them and the Ulster county map.</p> - -<p class="sigright"> -<span class="l1"><span class="smcap">Jason Gould</span>,</span><br /> -for <span class="smcap">John B. Gould</span>. -</p> -</div> - -<p>It will be observed that he signed his name -“Jason,” not Jay. He was christened “Jason,” but -about this time began to change it to Jay, by which -he was ever after known. “There wasn’t any foolishness -in Jason’s books,” says Mr. Tillson, referring to -the books in which Gould had made his notes of the -surveys. “He was all business in those days, as he -is now. Why, even at meal times he was always -talking map. He was a worker, and my father used -to say: ‘Look at Gould; isn’t he a driver?’”</p> - -<div id="i_32" class="figcenter" style="max-width: 29em;"> - <img src="images/i039.jpg" width="1806" height="2576" alt="" /> - <div class="caption">CANVASSING FOR HIS BOOK “HISTORY OF DELAWARE COUNTY.”</div></div> - -<p>This, in fact, is the testimony of all his contemporaries. -From his earlier years he was absorbed in -schemes for making money, and his whole aim in -life was to “get on.” With every passing year his -ambition broadened, until it enveloped a continent.</p> - -<p>It is a striking coincidence that young Gould -and his two partners in the map business were sued -by the man who first employed the former in the -project, and they placed their case in the hands of -Lawyer T. R. Westbrook, who succeeded in having -the suit dismissed. Westbrook afterward became -(and this is the coincidence) the supreme court judge, -who years after scandalized the legal profession by -holding court in Jay Gould’s private office and issuing -an order in one of the Manhattan railway litigations.</p> - -<p>He and his cousin, with whom he entered into -partnership at Albany, increased the map business -to the extent of sending surveyors into various portions -of Ohio, Pennsylvania and Michigan, but afterward -the contracts were transferred to a surveyor in -Philadelphia.</p> - -<p>From this time he was continuously employed -as a surveyor, until a severe attack of typhoid -fever compelled him to give up outdoor exposure. -He had determined to make a complete survey of -the entire state of New York, and he did complete -maps of Albany county, the village of Cohoes, the -Albany and Niscayuna Plank road and Delaware -county. He also surveyed Lake and Geauga counties -in Ohio, Oakland county in Michigan, and a proposed -railroad from Newburg to Syracuse. Then -he was seriously ill for several months, but his -money was not used up, and he wrote with some<span class="pagenum" id="Page_34">34</span> -degree of interest and also profit a history of Delaware -county and partial histories of Greene, Ulster -and Sullivan counties.</p> - -<p>Gould had gathered his ideas of casual writing -from a brief experience in a country newspaper -office, where he had worked gratuitously. The -history of Delaware county was four hundred pages -long, and is said to have been an exceedingly creditable -performance, both as an example of diligence -and care in the collection of facts and skill and taste -in the literary presentation of them. It never came -into general circulation, however, probably because -the printer, who lived in Philadelphia, insisted, in -spite of “copy” and proof corrections, in spelling -the name of the author “Gold.” When the books -arrived in Roxbury and the young historian discovered -the blunder he shipped them all back to the -manufacturer and would have nothing more to do -with them.</p> - -<p>Gould’s taste of money and profits had acted -upon him almost as does the taste of blood to a -lion. By this time he was making enough money -to furnish himself a realization of what money could -do and to make him want it with an insatiable -desire. His child life had been a short one, and he -was a man in business and responsibility at an age -when most persons of no greater age are considered -to be but the merest children. And what there was -of his child life had been cold, and not of a character -to teach him, what few yet know, that money is -the least important thing in the world. All his life<span class="pagenum" id="Page_35">35</span> -he had felt the lack of it. He had been needy. -He had been compelled to struggle to supply his -physical necessities, and then at times they were -but scantily supplied. One favorite sister, his elder -one, who was his first teacher of mathematics, was -almost the only person whose recollection at home -was any delight to the boy and young man. So, -now that his well-applied and earnest labors have -brought fruit to the extent of several thousand -dollars of cash capital available to him, it is not -strange that he sought for some enterprise in which -the profits would be certain and large. This opportunity -opened before him and he grasped it.</p> - -<p>It is very doubtful if, at that period in his career, -young Gould had ever read the works of Shakespeare, -but be that as it may, he followed that great -bard in the opportunity which was now his. Shakespeare -says:</p> - -<div class="poetry-container"> -<div class="poetry"> - <div class="stanza"> - <div class="verse indent0">“There is a tide in the affairs of man</div> - <div class="verse indent0">“Which, taken at the flood leads on to fortune.</div> - <div class="verse indent0">“Omitted, all the voyage of our life</div> - <div class="verse indent0">“Is bound in shallows and in miseries.</div> - <div class="verse indent0">“On such a full sea are we now afloat,</div> - <div class="verse indent0">“And we must take the current when it serves,</div> - <div class="verse indent0">“Or lose our ventures.”</div> - </div> -</div> -</div> - -<p class="in0">Gould’s tide was in; it was turning, and the chance -of his life was waiting to be taken. It was this -same faculty of being able to recognize what was -the right thing to do, that all his life stood him in -good play. He recognized it now, and changed the -whole current of his life.</p> - -<p><span class="pagenum" id="Page_36">36</span></p> - -<p>The lessons to be learned from this early period -of the life of the one who was in future time to be -the “Wizard of Wall Street,” are not in anything -obscure. Unceasing vigilance and unflagging energy -were the qualities that were most prominently developed -in him from his very youth. These qualities -properly directed and controlled, are in this age -bound to win success for any young man. Gould -never lost an opportunity to make more money by -increased efforts. He was not afraid to assume any -amount of extra work if he saw in it a just amount -of remuneration. From the time when he left his -father’s house and started out into the world to take -care of himself and make his own living, there was -never a man with whom he came in contact who did -not consider the young fellow a valuable person to -have attached to his business. Gould always made -it a point to prove himself valuable. He made his -employer’s interests his own, and was always ready -for whatever appeared necessary to be done. In all -of this, his example is most worthy of emulation. -And while it is not to be expected that the same -efforts will bring to every one equal results, one -may rest assured that they will amply repay for their -adoption.</p> - -<div id="i_37" class="figcenter" style="max-width: 27em;"> - <img src="images/i046.jpg" width="1716" height="2620" alt="" /> - <div class="caption">THE TANNERY WAR IN PENNSYLVANIA.</div></div> - -<hr /> - -<div id="toclink_37" class="chapter"> -<p><span class="pagenum" id="Page_37">37</span></p> - -<h2 class="nobreak" id="CHAPTER_IV">CHAPTER IV.<br /> - -<span class="subhead">GOULD AND THE TANNERY WAR.</span></h2> -</div> - -<p class="drop-cap"><span class="smcap1">From</span> the mildly humdrum life of school boy, -tinker, surveyor and bookseller, Gould’s career -now changes to an intensely dramatic period. While -pursuing his avocation as a surveyor, he made the -acquaintance of Zadock Pratt, a local celebrity who -lived at Prattsville not far from Roxbury, for whom -he had done some surveying. Pratt is described as -an ignorant man who had amassed what at that -time and in that section was considered an immense -fortune. He was worth a hundred thousand dollars, -and had the largest tannery in the country. He had -also been to Congress, and, as is usual with such -district nabobs, he was a very vain man. How he -happened to become attached to Jay Gould does -not appear. Mr. Gould himself once said: “While -I was carrying on these surveys, I met a gentleman -who seemed to take a fancy to me.” Zadock Pratt -was a famous man in his days. He was not only -the biggest tanner in the country, but he was also a -power in the politics in the state. During his ten -years’ service in Congress, at least one of his -speeches attracted widespread attention. He was -one of the earliest advocates of cheap postage, and -he moved the establishment of the Bureau of Statistics,<span class="pagenum" id="Page_38">38</span> -which has since developed into the Department -of the Interior. He also moved the first survey -of the Pacific railroad line. When he ceased -his Prattsville tannery in 1845 he estimated that in -twenty years he had used one hundred and fifty -thousand cords of bark and wood, had employed -thirty thousand men, had cleared twelve thousand -acres of land and tanned over one million sides of -sole leather. He was, however, nearly seventy years -old when he interested himself in Gould. The latter -was fortunate in obtaining the confidence of this -man. The history of his association with Pratt, and -later with Leupp, is not contained in legislative and -law reports, as are other portions of Gould’s career, -but there are several very circumstantial accounts -extant based on the testimony of eye-witnesses, -some of whom may still be living.</p> - -<p>One story has it that the young historian had -artfully flattered Pratt in his “History of Delaware -County,” and so won his good opinion. However -this may be, certain it is that Pratt asked the young -man who had surveyed his place in Prattsville to -embark with him in the business of tanning leather. -Gould agreed and immediately demonstrated his -capacity for managing the new venture by going -over the Delaware and Lackawanna railway, then -recently completed, into Pennsylvania, on a search -for a site of the proposed new tannery. He found -a large tract of land growing hemlock in Lackawanna -county and reported the fact to Mr. Pratt. -Soon after he started for the hemlock woods again,<span class="pagenum" id="Page_39">39</span> -and this time he made contracts of purchase with -their owners. In his next expedition into Pennsylvania -he took fifty or sixty men with him to build -the tannery. The site chosen was in the midst of -the forest, fifteen miles away from the nearest village. -The men took with them a portable sawmill. -Gould went in and chopped down the first tree -which was sawed up, and transferred it into a blacksmith -shop, under the roof of which Jay Gould -passed the first night, sleeping on a bed of hemlock -boughs. Thus the tannery, “a very large one, the -largest in the country at that time,” to use Mr. -Gould’s own words, was built. Near it there soon -sprung up a village which was called Gouldsboro, -and in this village Gould established a bank of -which he elected himself director by means of -proxies obtained from relations whom he had persuaded -to take stock.</p> - -<p>Pratt was taken with young Gould’s snap and -energy and considered him just the kind of material -to use in pushing a new enterprise. Pratt furnished -all the capital and Gould conducted the active operation. -The capital of the firm was $120,000, and -the tannery at Gouldsboro, Pennsylvania, became -the biggest concern of its kind in the country. -Gould threw the whole energy of his being into the -enterprise. Pratt made occasional visits to Gouldsboro, -but the business was left practically in Gould’s -hands and it grew rapidly. After a while Mr. Pratt -became dissatisfied with the condition of affairs. -Apparently a rushing business was being done from<span class="pagenum" id="Page_40">40</span> -which there was no adequate return. After awhile, -Mr. Pratt having invested $55,000, sent an agent to -Gouldsboro to investigate affairs.</p> - -<p>The books seemed to be so mixed that it was -quite impossible to ascertain just how the firm stood. -Gould soon saw that his partner was becoming suspicious -and determined to be ready for him. On -the growth of the business Gould had, of course, -occasion to frequently visit New York, where he -became acquainted with most of the merchants in -the “Swamp,” then, as now, the center of the leather -trade. Among others, he became acquainted with -Charles M. Leupp, a merchant of the old school, -honorable and correct in all his dealings. He was a -man of great refinement and of poetic temperament, -and possessed many literary and artistic tastes. He -was a man of wealth and owned a fine mansion on -the corner of Madison avenue and Twenty-fifth -street. This mansion is still standing, but has been -altered into an apartment house. In Mr. Leupp’s -time it was probably the handsomest and best constructed -private dwelling in the city and cost about -$150,000.</p> - -<p>It was an evil day for Mr. Leupp when Gould -came to him and proposed that he advance the -money to purchase Mr. Pratt’s interest in the tannery. -That was the beginning of Mr. Leupp’s -troubles, but at that time he considered the proposition -an advantageous one and he consented to -advance the cash. Gould never seems to have -had at any period in his career any difficulty in<span class="pagenum" id="Page_41">41</span> -interesting the wealthiest and most powerful men -in his schemes. He has himself said that it is just -as easy to obtain the acquaintance and secure the -friendship of the most powerful as of the most -insignificant if only one will set about it in the -right way. Well, Gould returned to Gouldsboro -with Leupp’s backing. He found Pratt looking -over the books and puzzled by their intricacies. He -discovered that Gould had started a private bank at -Stroudsburg in his own name, and he became suspicious -that the firm’s funds were used in the bank. -Pratt then demanded an explanation and finally -threatened to close up the tannery and dissolve the -partnership. Gould protested that this would ruin -him, when Pratt said that he must buy or sell. This -was what Gould was waiting for, and he told Mr. -Pratt to make him an offer. Pratt gave his energetic -young partner the choice of two alternatives, -either to take $10,000 for his interest in the business -and retire from the firm, or pay $40,000 for the interest -of the senior partner. Gould got ten days’ time -in which to make up his mind, and at the expiration -of that period surprised Mr. Pratt by buying him -out on his own terms.</p> - -<p>Of course he drew on Leupp for the money. -This made Gould a partner of Leupp with full -powers. He continued with Leupp the policy he -had begun with Pratt. He branched out in many -speculations in Leupp’s name, but without his -knowledge. It is said that he bought another tannery, -attempted to get up a “corner” in hides, and in<span class="pagenum" id="Page_42">42</span> -other ways entered into many hazardous enterprises. -He continued to draw on Leupp for money -and to display his incapacity as a bookkeeper until -Leupp became suspicious, just as Pratt had. Meanwhile -the panic of 1857 had swept over the country -and unsettled all business operations, and when -Leupp discovered the extent in which he had been -involved in Gould’s speculations he thought that he -was ruined. He went to his magnificent home one -night and, in a fit of despondency, shot himself dead. -It is not certain but that Gould’s schemes would -have turned out all right, and to Leupp’s, as well as -to Gould’s advantage, but it is a fact that Leupp’s -partners and heirs have always felt very bitter -against Gould, and could not help believing that he -was indirectly the cause of Leupp’s sad and untimely -end.</p> - -<p>Mr. Leupp’s old-fashioned notions had been -terribly shocked, for Gould had gone into corners -in hides and other tanneries which might and might -not have turned out well. When he found that his -partner had bought not only all the hides then in -the market but all that were to arrive in the ensuing -six months, he literally lost his reason, and his -suicide occurred after a stormy interview with -Gould, who remained imperturbably cool and -simply turned on his heel and left the office.</p> - -<p>It is related that in the excitement and passion -of Black Friday when a mob surged through Wall -street, a voice was heard above the tumult shouting -the awful question:</p> - -<p><span class="pagenum" id="Page_43">43</span></p> - -<p>“Who killed Leupp?”</p> - -<p>And the answer is said to have come from a -hundred throats:</p> - -<p>“Jay Gould!”</p> - -<p>Prior to the fatal shot, Gould had arranged with -Congressman Alley, of Massachusetts, to take the -works and thus relieve Luepp and Lee, who was -also a partner. But the suicide of the senior partner -stopped the final consummation of this plan, and, -Gould always insisted, stopped the way to a profitable -continuance of the works.</p> - -<p>Mr. Gould then negotiated with Leupp’s daughters -for the control of the tannery. It is stated that -they demanded sixty thousand dollars, the amount -Leupp had originally advanced. Gould agreed to -this, but proposed a plan by which the payments -should extend over a term of years—ten thousand -dollars cash and a like amount every year until the -entire indebtedness had been liquidated. When the -papers were drawn up it was found Gould had made -no provision for paying interest. Negotiations -were broken off, and Mr. Lee, a relative and partner -of Leupp, hastened to Gouldsboro and took possession -of the tannery in the name of Leupp’s heirs, -taking the precaution to hire a lot of men to help -him barricade and guard it. Gould arrived a day or -two later and determined to capture the tannery at -all hazards. Gouldsboro was a village of about -three hundred inhabitants, situated some distance -from the railway station, and besides the tannery -the most important building was the hotel. Mr.<span class="pagenum" id="Page_44">44</span> -Lee, who, like Mr. Leupp, is described as an honorable, -warm-hearted man, but with more courage and -grit, had the tannery guarded by about thirty or -forty men whom he had hired at Scranton.</p> - -<p>Gould, as soon as he arrived, began active operations. -He interested nearly the entire population -of the place in his behalf. They knew him and Lee -was a comparative stranger. Gould told every -one he met that he owned the tannery, that Lee -and his cutthroats were endeavoring to get the -property away from him, and that if they succeeded -the business would go to wreck and ruin and the -place would suffer a big loss. He had soon an -armed gang of about 150 men around him prepared -to fight for him. They were a tough looking set of -men. He took them to the hotel, where he gave -them an oyster supper, and then mounting an empty -box addressed his forces, telling them to use no -unnecessary violence, but to “be sure and get the -tannery.” This was probably the first and only -speech Gould ever made in all his life. Filled with -oysters and whisky, the men made a determined -charge on the tannery, Gould directing everything, -but prudently keeping in the background, for he -heard that Lee had a loaded musket ready for him. -The battle was fierce but short. The barricaded -doors were battered in and Lee’s men were driven -from the tannery. Two men were badly wounded. -One of Lee’s party was shot through the breast. -Warrants were issued for the arrest of all concerned. -Many of the men fled from the place never to return.<span class="pagenum" id="Page_45">45</span> -Those arrested were afterward released on bail. -Gould was left in possession of the property, but it -did him little good. Lee began legal proceedings -against him and Gould brought counter-suits, and -this litigation was continued until the business was -destroyed and the tannery abandoned.</p> - -<p>In the New York <cite>Herald</cite> of March 16, 1860, is -given the following account of the battle:</p> - -<p class="p2 center wspace"> -TANNERY INSURRECTION IN PENNSYLVANIA.</p> - -<p class="b1 center vspace"> -<span class="smaller">BATTLE BETWEEN THE FORCES OF THE SWAMP LEATHER DEALERS—<br /> -THE LEUPP AND LEE TANNERY, IN GOULDSBORO, ATTACKED<br /> -AND DEFENDED—SIDES OF LEATHER USED FOR BREAST-<br /> -WORKS—INSURGENTS TWO HUNDRED STRONG—<br /> -THE TANNERY TAKEN—FLIGHT OF THE<br /> -DEFENDERS—WOUNDED<br /> -FOUR.</span> -</p> - -<p>About half-past ten o’clock on Tuesday morning -the lock was wrenched from the stable, the men -having been concentrated into the tannery and the -stable being unguarded. A little past twelve the -tannery itself was attacked by a mob variously estimated -at from one hundred and eighty to two -hundred and fifty men, armed with axes, muskets, -rifles and other weapons. Without a demand -of possession or summons to surrender, the -doors were beaten in, and but a few blows had been -struck by the assailants before they began to fire -ball and buckshot through the building, raking it in<span class="pagenum" id="Page_46">46</span> -every direction. As vigorous a defense was made, -by a force of fifteen men in the story attacked, with -tannery sticks, stones and four revolvers, as was -possible against such overwhelming odds. The tannery -was finally carried on all sides, and those who -did not escape were violently flung from the windows -and doors, while the assailants rushed through -the buildings, yelling like Indians, pursuing the -fugitives with their guns in every direction. In the -action many contusions were received and four gunshot -wounds, and had it not been for the large number -of sides of leather hung up the lofts, very few of -the defending party would have escaped without -wounds.</p> - -<p>Mr. Jay Gould, in his version of the affair, in -which he endeavors to exculpate himself, says:</p> - -<p>“I quietly selected fifty men, commanding the -reserve to keep aloof. I divided them into two companies, -one of which I despatched to the upper end -of the building, directing them to take off the boards, -while I headed the other to open a large front door. -I burst open the door and sprang in. I was immediately -saluted with a shower of balls, forcing my -men to retire, and I brought them up a second and -third time and pressed them into the building, and -by this time the company at the upper end of the -tannery had succeeded in effecting an entrance and -the firing now became general on all sides and the -bullets were whistling in every direction. After a -hard contested struggle on both sides we became -the victors, and our opponents went flying from the<span class="pagenum" id="Page_47">47</span> -tannery, some of them making fearful leaps from -the second story.”</p> - -<p>After this depreciation of value in the tannery -property, Gould’s ready resources were so exhausted -that it is related that he had to borrow the money -to pay his railroad fare to New York. It is probable -that no man in this or any other country has -ever been a party to so many lawsuits as Gould. -From the time of the contest over the map business -there was scarcely a day during his whole life that -he did not have some litigation on his hands. This -ends the early chapters of Gould’s life. He now -entered upon that career in the metropolis which -has made his name familiar around the globe.</p> - -<p>It is doubtful if many young men, before the age -of twenty-four years, have passed through as many -and as varied experiences as these of Jay Gould. -All his training now for several years had been in -the line, first, of competition with others in the same -business as his own, and then in direct conflict and -war with those who had been his associates. He -had learned not only to conquer his enemies, but to -conquer his friends. He had thoroughly developed -and made apparent to every one who came in contact -with him that spirit that remained with him through -all his life, the mania for the aggrandizement of his -own fortune, no matter whose money must be lost -for him to gain it. The last chapter of his tannery -experiences was a dark one, and there is nothing in -it to be held up for admiration by any one, but -rather as an example of the first notable evil in the<span class="pagenum" id="Page_48">48</span> -nature of financial wrecking of the many that are -found in a complete retrospect of his life. Gould -himself always realized the discreditability of his -actions in the tannery matter, as is evidenced by the -way in which he tried to smooth it over before the -investigating committee ten years later. As a matter -of fact, he probably realized and recognized -whatever else he did that was evil in his far greater -financial operations during the next three decades, -but if he did, he gave no sign nor did he ever indicate -that he had any regrets in his career.</p> - -<div id="i_49" class="figcenter" style="max-width: 29em;"> - <img src="images/i060.jpg" width="1827" height="2588" alt="" /> - <div class="caption">GOULD’S FIRST GLIMPSE OF HIS FUTURE WIFE.</div></div> - -<hr /> - -<div id="toclink_49" class="chapter"> -<p><span class="pagenum" id="Page_49">49</span></p> - -<h2 class="nobreak" id="CHAPTER_V">CHAPTER V.<br /> - -<span class="subhead">GOULD’S ROMANTIC MARRIAGE AND HIS FIRST -RAILROAD.</span></h2> -</div> - -<p class="drop-cap"><span class="smcap1">When</span> Jay Gould reached New York in 1860, -after the tannery war, he was almost impoverished. -He settled down at the Everett House, a comfortable -hotel, and there he lived for a little time -while waiting for something to turn up. Gould was -not very busy just then and used to wander around -the city, up town and down town, through Wall -street and Lower Broadway, where in later years he -became such a power; maybe, even then, wondering -if he would ever reach the point in wealth and -influence that belonged to the men he met, and -figuring, as every one does at times, what he would -do if he were a millionaire. He knew the tannery -business thoroughly and had many influential acquaintances -in “The Swamp,” which was the seat -then, as it is now, of the leather trade in New York. -But he most wanted to get into the railroad business. -He believed that greater opportunities were there -than in any other occupation for the acquiring of -wealth and influence. So he bent all his energies in -that direction.</p> - -<p>One day just before the war, Gould came walking -down the street toward his hotel, and looking<span class="pagenum" id="Page_50">50</span> -up toward the window of the parlor, he saw seated -there, looking toward him, a most charming young -lady. He was not by any means inclined toward -flirtation, but he could not avoid an appearance of -interest in her, and he passed on into the hotel. -Soon after that the same episode was repeated. By -a little investigation, Mr. Gould learned that the -young lady was Miss Ellen Miller, whose father, a -wealthy New York merchant, was a member of the -grocery house of Philip Dater & Co. She lived in a -house across the street, and a delightful flirtation -with the girl whose pretty face appeared at the window -preceded any formal acquaintance. Circumstances, -however, permitted them to meet socially, -and they became excellently well acquainted. After -a few weeks, the acquaintance became more and -more intimate and finally ripened into love. Miss -Miller’s father indicated opposition to their marriage, -their desire for which they made evident, and -they were compelled to seek some roundabout way -to accomplish their purpose. The result was, that -after trying several ways to circumvent the unsympathetic -parent, they decided upon a secret marriage, -and this was actually accomplished. There were no -runaway features about the match, except that to -avoid the opposition that they were certain would -come, they simply walked to a minister’s, a short -distance from their home, and were married without -letting any one know of it. When they returned, -Mr. Miller indicated no ill-will at their action, and -went to work to make the best of it all. He did<span class="pagenum" id="Page_51">51</span> -this by giving the famous financier his first introduction -into the railroad business. Mr. Miller -owned some shares in the Rutland and Washington -railroad. He asked his son-in-law to look the property -over and see if anything could be done to save -the investment. The road was sixty-two miles long, -running from Troy, New York, to Rutland, Vermont. -The panic of 1857 had left this road in a demoralized -condition, and Gould found that he could buy a -majority of the first mortgage bonds at ten cents on -the dollar. He had now found the true field for his -peculiar talent. He made himself president, treasurer -and general superintendent of the road, studied -the business of railroading on the ground, developed -the local traffic, and finally effected the Rensselaer -and Saratoga Consolidation. By this time, both -bonds and stocks were good and he sold the latter -for one hundred and twenty dollars.</p> - -<p>There has been no time when it was possible -to estimate the wealth of Mr. Gould, and as he was -secretive in those early days as in his later, there -was no saying what he was worth when in 1860 he -came into Wall street. One statement has it that -when the firm of Smith, Gould & Martin was organized, -Mr. Gould’s possessions amounted to thirty -thousand dollars in cash. Another is that when he -sold out his holdings in the Rensselaer and Saratoga -Consolidation, he was worth seven hundred and -fifty thousand dollars.</p> - -<p>With a mind peculiarly alert to all the influences -which affected the values of railway securities, with<span class="pagenum" id="Page_52">52</span> -habits of great industry, with phenomenal tenacity -of purpose, with a fair amount at least of capital to -back him, it is not surprising that Mr. Gould profited -largely by his speculation in railway stocks and -gold during the war of the rebellion. The keen-sighted, -intelligent men in “the Street” at that time -nearly all made money, and Mr. Gould was at least -a millionaire when the Confederacy fell. What his -methods were at the time it is useless to speculate -about. It was before the day when by absolute -mastery of gigantic railway and telegraph systems -he could at his will depress the value of almost any -institution on which he fixed his eye by setting on -foot a ruinous war in rates until he had made it to -be his own interest to restore a more normal and -healthful condition of affairs by ceasing his antagonism -and building up the property which he had -acquired cheaply during the period of depression. -But the details of his operations were always so subtle -as to be shut out from the discovery of either -friend or foe.</p> - -<p>Gould was now fairly on the way toward his -colossal fortune. Though friends warned him against -entering into the whirlpool of blasted hopes and -ruined fortunes of Wall street, his inclinations in -that direction were too strong to be resisted. Gould -was a born speculator. It is true that his great fortune -was created mainly in hazardous enterprises -outside of Wall street, and that in stock speculations, -pure and simple, he was not always so successful -or so infallible as many have supposed, but by<span class="pagenum" id="Page_53">53</span> -nature and habit Gould was at this time of his life a -commercial gambler, and it was as natural that he -should enter Wall street as for a duck to take to -water. It was in 1859 or 1860 that Gould first entered -Wall street. It was not very long before he -stepped to the front rank. What a long list of -brainy and courageous men do Gould’s contemporaries -in the street make! With most of them Gould -has been at sword’s point, with a few he has been -an ally, with some he has been both ally and enemy. -Most of them are no longer powers in the speculative -world. Some of them are dead. Not a few -have been overwhelmed in the swift, resistless torrent -of stock speculation. Three or four yet remain -with power in their hands and millions in their -vaults. The Vanderbilts—the commodore, his son -and grandsons—Daniel Drew, James Fisk, Jr., the -Beldens, Commodore Garrison, Henry N. Smith, -James R. Keene, William Heath, George I. Seney, -Gen. Thomas, Calvin S. Brice, D. O. Mills, Horace -F. Clark, Alfred Sully, Addison Cammack, C. F. -Woerishoffer, the Rockefellers, S. M. Kneeland, C. J. -Osborn, D. P. Morgan, H. S. Ives, C. P. Huntington, -Russell Sage, Cyrus W. Field, John W. Garrett, -Robert Garrett, J. P. Morgan, the Seligmans, Brown -Bros., Jay Cooke, Hugh J. Jewett, Lathrop, Little -and Austin Corbin, Henry Clews, Washington E. -Connor, Burnham, Gen. E. F. Winslow, Edward S. -Stokes, S. V. White, William Dowd, Solon Humphreys, -William R. Travers, Rufus Hatch, Samuel -Sloan—these were some of the men identified with<span class="pagenum" id="Page_54">54</span> -various Wall street interests with whom Gould has -been allied or at enmity, or both, during his long -career in the street. That he has been able among -all these financial giants to make himself the leader -is the highest evidence that can be given of his -genius in speculation and railroad financiering. As -we read some of these names there arise before our -eyes the visions of murder, of suicide, of bankruptcy, -of the debtor’s prison, of the felon’s cell, of ruined -fortunes and blasted reputations. Others of the -men have achieved wealth and honorable names. It -is interesting to note that at the time Gould first -entered the street one of his fellow-boarders at the -Everett House was James Gordon Bennett, the -elder, with whose son and successor he became engaged -in such bitter business and personal antagonisms.</p> - -<p>Gould not only gambled in Wall street, but he -defended the operation. “People,” he told a State -Senate Committee which was investigating into stock -and grain corners, “will deal in chance. Your minister, -doctor and barber all have the same interest in -speculation. Would you not, if you stopped it, promote -gambling?”</p> - -<p>Jay Gould was twenty-three years old when he -went into Wall street as a broker. In addition to -whatever amount of money he had, he had the confidence -of two or three large capitalists, which is the -best capital of all for beginning a business of speculation. -He started on his Wall street career in a -small office and frequently took his stand with the<span class="pagenum" id="Page_55">55</span> -“curb-stone” brokers. He made money right along. -In 1860 he became intimately acquainted with Henry -N. Smith, who was then one of the big men in Wall -street. Soon the firm of Smith, Gould & Martin was -formed and it was prosperous from the start. Gould -made a careful study of the railroad situation and -became an expert in the manipulation of railroad -securities in the speculative market. He paid the -closest attention to business, allowing himself few -of the social pleasures of which young men are -usually fond. He had no small vices, being a teetotaler.</p> - -<p>During the war of the rebellion, the firm did a -large business in railway securities, and also made a -great deal of money speculating in gold. Gould had -private sources of information in the field, and he -was able to turn almost every success or defeat of -the Union army to profitable account.</p> - -<p>At last Gould had found his exact niche, the corner -in which the railroads were put away. That -“corner” was ever after the one in which he found -both his labor and his recreation, his fortune bad -and good. He was a natural railroad magnate. -Almost always he won, and when he did not, it was -simply because he attempted schemes that would -have seemed to any other man entirely beyond possibility. -From this time his history never loses its -intense dramatic interest and never goes back to the -humdrum life that he had abandoned. From this -time, there could be no night in which Jay Gould -could sleep in dreamless rest, with no thought of the<span class="pagenum" id="Page_56">56</span> -morrow. From this time, there could be never a day -of freedom from the intensest strain of business -anxiety. He had chosen speculation for a life work, -and its cares must sit upon him. His could not be -the experience of the man in mercantile life, or of -the man of smaller affairs, who finishes his work in -the evening and goes to his home with never a -thought of the cares to-morrow will bring. Great -enterprises make great responsibilities. From this -time the enormous weight of the responsibilities -upon Jay Gould’s shoulders could never again lessen.</p> - -<p>Did he ever, in those years of scheming and -fighting for wealth, cast his recollection backward -to the old days at Roxbury, when he was but a barefoot -farmer’s boy, with nothing more oppressive on -his mind than the necessity to go through the rain -for the cows, or to find the nest that the blue hen -had hidden away some place in the hay-mow?</p> - -<p>There was little in the associations that he made -during these first Wall street years to remind him of -those days. For while many of the men with whom -he came in contact had been like himself, the sons -of farmers with the first years of their lives spent far -from the city, yet from this time, all their “watering” -of stock was entirely in the direction of stocks -which represented the value of railroads and other -properties, and all their knowledge of farm products -was devoted to the manipulation of grain markets.</p> - -<p>As Gould’s acquaintance grew larger, and his -success in ordinary small ventures became assured, -his disposition began to demand something of<span class="pagenum" id="Page_57">57</span> -greater magnitude, something with more satisfaction -in it for that appetite that was already becoming -insatiable. A few small railroad ventures were carried -through in a manner bordering upon perfection, -and this increased the confidence in him of those -speculators who were already his acquaintances. -The way opened for him to enter into the manipulations -of Erie, and, as before, when opportunity came -he recognized and grasped it.</p> - -<hr /> - -<div id="toclink_58" class="chapter"> -<p><span class="pagenum" id="Page_58">58</span></p> - -<h2 class="nobreak" id="CHAPTER_VI">CHAPTER VI.<br /> - -<span class="subhead">GOULD’S ASSAULT UPON ERIE.</span></h2> -</div> - -<p class="drop-cap"><span class="smcap1">The</span> most thrilling, the most discreditable portion -of Gould’s career, is contained in the ten years -following the close of the war of the rebellion. The -blackest pages in the history of American railways -comprise the chapter relating to the Erie and the -most shameful efforts to wreck the fortunes of a -thousand men for the aggrandizement of the fortunes -of a few, were made in connection with the -schemes that resulted in “Black Friday.”</p> - -<p>Nothing in the Credit Mobilier and the history -of the rise of the Pacific railroads equals in downright -violation of sacred trusts, in absolute plunder -of vast properties, and in wholesale bribery and -corruption, the record of Erie. Even Mr. Gould, in -his sworn autobiography in that celebrated investigation -before the committee on labor and education, -while careful to give minute details about other -periods of his history, significantly preserved an -entire silence as to Erie and “Black Friday”—two -incidents in his career which nothing but an effort -to conceal could explain his silence regarding. -That this is no exaggeration of language, an examination -of the facts will show. There is no intention -to speak maliciously of Gould. Beside an open<span class="pagenum" id="Page_59">59</span> -grave, charity and forgetfulness stand guard on -either side. But the lesson of Gould’s career would -be lost, if even at this time the facts were not plainly -and openly told. To say that Gould ruthlessly -plundered the Erie railway is to speak the plain -truth.</p> - -<p>Fortunately the record of Erie, notwithstanding -Mr. Gould’s silence, can be told from authoritative -testimony. In his famous “Chapter of Erie,” published -in the North American Review, in 1869, -Charles Francis Adams gives a thrilling account of -Erie from the time Daniel Drew engaged in his -famous war with Commodore Vanderbilt, to the -time when that unfortunate road was in complete -control of Jay Gould and James Fisk, Jr. Mr. -Adams’ history stopped short in the middle of the -story, but the record of Erie, from 1869 till Mr. -Gould was driven from power in 1872, is given in -the report of the legislative inquiry in 1873, and of -the Hepburn investigation of 1879.</p> - -<p>It is a curious fact that years after writing this -“chapter” Mr. Adams, having become president of -the Union Pacific, sat in the same Board of Directors -with Gould, but only for a comparatively brief -period, and Mr. Adams never repudiated or recalled -his early history of Gould in Erie. It is a striking -illustration, however, of the power of millions that -Gould should live to sit in the same board with the -representative of the aristocratic Adams family, -which furnished two Presidents to the United States; -that after an effort to involve the administration of<span class="pagenum" id="Page_60">60</span> -President Grant in the disgrace of Black Friday, he -should, in after years, be joined with him in business -enterprises; that after having been publicly branded -as an unscrupulous gambler in a Congressional -report written by James A. Garfield, he should be -sought for to render aid to secure Garfield’s election -as president, and that, though not seeking to join -the social circles in which the Astors are leaders, he -was able to induce John Jacob Astor to sit with him -in the Western Union Board of Directors.</p> - -<p>Twenty years ago, after Mr. Adams wrote his -“Chapter of Erie,” he was himself president of the -Union Pacific, and it must have given Mr. Gould the -keenest satisfaction to have been the occasion of his -retirement from that position. The railway was in -a bad way financially—had a big floating debt—and -Mr. Gould and his friends stepped in, gained control -of the property the second time, retired Mr. Adams -from the presidency and secured an adjustment of -the floating debt. It was suggested to Mr. Gould at -this time that he might write a “Chapter of Union -Pacific” covering the history of the Adams administration. -But whatever there may have been lacking -in administrative vigor in Mr. Adams’ presidency, -he retired without any blot on the family escutcheon.</p> - -<p>When Gould entered Wall street Erie was one of -the most active stocks on the list of the Stock Exchange. -It was natural that he should drift into its -speculation, and his connection with the Cleveland -and Pittsburg led him naturally into Erie. His old -acquaintances were surprised to hear one day that<span class="pagenum" id="Page_61">61</span> -he had become a director and a controlling spirit of -this great road. This was in 1867.</p> - -<p>But now let us quote a little plain language from -Charles Francis Adams in order to get into the -atmosphere of Erie at this time:</p> - -<p>“Yet freebooters are not extinct,” he wrote. -“They have only transferred their operations to the -land, and have conducted them in more or less -accordance with the forms of law, until at last so -great a proficiency have they attained that the commerce -of the world is more equally but far more heavily -taxed in their behalf than would ever have entered -into their wildest hopes, while outside the law they -simply make all comers stand and deliver. * * * -Gambling is a business now, where formerly it was a -disreputable excitement. Cheating at cards was -always disgraceful. Transactions of a similar character -under the euphemistic names of ‘operating,’ -‘cornering’ and the like are not so regarded. * * * -No better illustration of the fantastic disguises which -the worst and most familiar evils of history assume -as they meet us in the actual movement of our own -day could be afforded than was seen in the events -attending what are known as the Erie wars of the -year 1868.”</p> - -<p>In these wars Gould was an active spirit; and if -Mr. Adams had written in 1873 instead of 1869 he -would have made his language still stronger.</p> - -<p>Before his entrance into Erie Gould had become -acquainted with James Fisk, Jr., and the former, -with that unerring judgment of men which was<span class="pagenum" id="Page_62">62</span> -always one of the elements of his success, soon perceived -in Fisk the qualities which supplied his own -deficiencies. Fisk was the son of a Vermont peddler -and followed the calling himself for some time, and -in it learned the great art of driving a hard and -shrewd bargain. Wholly uneducated, his natural -ability in the line of making money was very great. -Gould was timid and shrank from publicity. Fisk -was bold and loved notoriety. Gould had many -refinements of mind and was of a domestic nature. -Fisk was coarse, sensual and fond of display. He -became the colonel of a militia regiment, and with -great delight used to put on his uniform and ride in -front of his command. He used to create a sensation -by riding in a carriage with six horses in questionable -female company. He considered it one of -the choisest prerogatives of his position of vice-president -and comptroller of Erie to direct the theater -that adjoined the railway offices in the Grand Opera -House. While Gould did not have the inclination -or courage to do these things he did not hesitate -to use Fisk in every available way and to hide his -own personality behind that of his partner. In those -days Fisk seemed to play the more prominent part, -and Gould, in public estimation, was a secondary -character. When anything was done it was Fisk -that bore the brunt of popular criticism and indignation. -Yet the facts as they are now known show -that Gould’s was the master mind; Fisk was simply -his right arm. “With Gould to plan and Fisk to<span class="pagenum" id="Page_63">63</span> -act,” said Gen. Francis Barlow, in 1872, “they were a -strong team.”</p> - -<p>At the time Gould and Fisk entered into Erie, -Daniel Drew was the master of that great trunk line. -Drew was one of the most extraordinary characters -in Wall street history. Both pious and unscrupulous, -he founded a theological seminary and wrecked -a railroad with equal fervor. He was a director and -treasurer of Erie, and used these positions simply -for speculative purposes. He was known in his day -as “the great speculative director.” His biggest -piece of “financiering” was to get himself apparently -cornered in Erie stock, and then to appear in the -street with a block of stock which had been converted -from bonds issued with an obscure provision entitling -the holders to convert them into stock. Gould -later on repeated this trick with success, both in -Erie and Jersey Central.</p> - -<p>Soon after Gould and Fisk entered Erie, Drew became -engaged in his celebrated contest with Commodore -Vanderbilt, and in this contest he had their able -assistance. The first and great Vanderbilt was cast -in a larger mould than Drew. The latter was simply -a speculator. Vanderbilt was a creator of property. -He was the first of the line of railroad kings. Laying -the foundations of his great wealth in the steamboat -and steamship business, he soon drifted into railroad -operations, clearly seeing that in the development -in the great inland commerce of America there were -larger and quicker profits to be obtained than in the -export trade.</p> - -<p><span class="pagenum" id="Page_64">64</span></p> - -<p>Vanderbilt had obtained control of the Harlem -and Hudson River roads; he now aimed at the -ownership of Erie. Space will not permit the telling -of the story of this famous contest. It can be found -in detail in Mr. Adams’ interesting chapter. It is a -story of extraordinary stock operations, of millions -lost and won; of securities issued by the bushel and -with little or no regard for law or equity; of large -and intricate litigation; of judges bought, legislators -bribed, of directors defying injunctions and fleeing -to another state to escape arrest. Vanderbilt, having -been defeated in other efforts to get his fingers -on the Erie road, resolved, if possible, to buy a controlling -interest, and his brokers were set at work on -this difficult job. Drew resolved to let Vanderbilt -have as much stock as he wanted, but entered into a -bargain with Gould and Fisk by which the railroad -king should be defeated by issuing and marketing an -unlimited number of new securities. So Drew sold -and Vanderbilt bought. The latter, having in -remembrance Drew’s famous convertible stock trick, -resorted to the courts to prevent him from issuing -any more stock. Injunctions were issued enjoining -Drew and all the directors of the road from issuing -any stock. Counter-injunctions were obtained by the -Drew-Gould party. One judge would issue an order -commanding certain things to be done which another -judge simultaneously commanded should not -be done. Judges in New York, Brooklyn, Albany -and Binghamton issued contradictory injunctions. -Such a legal pandemonium has never been seen<span class="pagenum" id="Page_65">65</span> -before or since. The courts ran riot and law became -another name for plunder. In this scene—the blackest -in the history of American jurisprudence—the -notorious Judge Barnard loomed up conspicuously, -and a little later Judge Cardoza, shrewd, learned, -crafty and venal—the modern Lord Bacon—appeared -on the scene. At first Barnard was Vanderbilt’s -judge. Later, when Vanderbilt had no further -use for him, he became Gould’s judge. His other -master was Tweed.</p> - -<p>In the meantime, regardless of injunctions, Drew -and his aides calmly proceeded to carry out their -carefully matured plans to issue new stock. It was -agreed that fifty thousand shares of new stock should -be delivered to the Wall street firms of which Gould -and Fisk were members. Without going into the -details of the intrigue, it is sufficient to say that it -was, at least for the time being, successful. When -the fifty thousand shares were thrown on the market -the price of Erie fell from eighty-three to seventy-one. -Vanderbilt found that he had bought at high -figures a lot of Erie stock, but that he was no nearer -control than ever. Drew raked in about seven -million dollars of Vanderbilt’s money, and Gould -and Fisk shared in the profits. Then orders were -issued to arrest the Drew directors for contempt of -court. Receiving intelligence of this, they hastily -packed up their papers and securities, and thrusting -them into their pockets and valises, they beat a -hasty retreat to Jersey City. Over six million -dollars in securities were carried in one coach.<span class="pagenum" id="Page_66">66</span> -Among this precious company, of course, were Gould -and Fisk. In Jersey they were safe from the operation -of New York law. They calmly proceeded to -have the Erie incorporated as a New Jersey institution, -at the same time laboring to get the New York -legislature to pass a bill to legalize the issue of fifty -thousand shares of stock, a transaction which some -one at that time likened to an attempt “to legalize -counterfeit money.” It was not conscientious scruples -which caused the legislature to hesitate to pass this -bill; it was simply a question of cash. Vanderbilt -was still in the fight to protect his interests, and it -was a question of who had the biggest purse. Meanwhile, -Peter B. Sweeny—the brains of the Tweed -ring—had been made, temporarily, receiver of the -road, and though he never actually did anything in -that position, Judge Barnard ordered that he be paid -one hundred and fifty thousand dollars for his -services. Poor Erie had to foot the bill.</p> - -<p>The Erie people needed a first-class representative -at Albany to watch their interests before the -legislature. Gould was selected as the fittest man -to act in the capacity of a lobbyist. First giving -out that he was going to Ohio, Gould quietly -slipped up to Albany, with five hundred thousand -dollars of Erie cash in his pocket. Here in a day -or two he was arrested, but released on five hundred -dollars bail to appear in a New York court on -Saturday. He appeared on that day, but his -attorneys secured a postponement, and he was -allowed to return to Albany in charge of an undersheriff.<span class="pagenum" id="Page_67">67</span> -Arriving in Albany Mr. Gould was conveniently -taken sick, and unable to return to New -York to attend the court proceedings, though he -drove to the capitol in a snowstorm. The officer -reported him to the court as a “runaway,” but the -matter was afterward settled, and, in the language -of Mr. Adams, he “assiduously cultivated a thorough -understanding between himself and the legislature.” -In this he was materially aided by the cash with -which his pockets were so liberally filled. Corruption -ran high. One senator was recorded to have -accepted seventy-five thousand dollars from one -side and one hundred thousand dollars from the -other. One man was paid five thousand dollars by -Gould “just,” as Mr. Gould remarked, “to smooth -him over.” The corruption at this session was -investigated by a legislative committee in 1869. -Gould was a witness, but he endeavored to conceal -the facts as much as possible. In the famous Erie -investigation of 1873, however, Mr. Gould testified -as follows:</p> - -<p>“I was first elected President of the Erie railroad -in 1868, and I was President in 1869, 1870 and 1871. -I do not remember whether I approved payment to -William M. Tweed of money for legal services while -he was Senator. I do not know whether he is a -lawyer. He was a director of Erie and a member -of its executive committee. I would not have -allowed pecuniary transactions with Mr. Tweed to -be put in the shape of legal services if my attention -had been called to them. The name of William M.<span class="pagenum" id="Page_68">68</span> -Tweed is in my handwriting. The words in my -handwriting are: ‘William M. Tweed, legal disbursements -as per order, J. G., $35,000, April 25, 1871.’ -The approval of voucher, April 5, 1869. He was -Senator in 1869, also in 1871 and 1872. The ‘legal -account, was of an india-rubber character. I gave -large amounts in 1869, 1870, 1871 and 1872 in the -senatorial and assembly districts. It was what -they said would be necessary to carry the day in -addition to the amount forwarded by the committee, -and contributed more or less to all the districts -along the line of the road. We had to look after -four states—New York, New Jersey, Pennsylvania -and Ohio. It was the custom when men received -nominations to come to me for contributions, and I -made them and considered them good paying investments -for the company. In a republican district -I was a strong republican; in a democratic district -I was a democrat, and in a doubtful district I -was doubtful. In politics I was an Erie railroad -man all the time. We had friends on both sides—friends -in a business way. The amounts contributed -for the elections were large, but I could not give -any definite estimate. No names occur to me at -the moment. I am a poor hand to remember names. -I had relations in several states. I did not keep -separate what I paid out in New Jersey from what I -paid out in New York. We had the same ground to -go over there, and there has been so much of it—it -has been so extensive—that I have no details now -to refresh my mind. You might as well go back<span class="pagenum" id="Page_69">69</span> -and ask me how many cars of freight were moved -on a particular day.”</p> - -<p>This confession so charmingly frank relates to -payments before elections, but there is every reason -to believe that the payments were continued after -election.</p> - -<p>The state of things unearthed by this investigation -was officially described in the report of the legislative -committee as follows:</p> - -<p>“It is further in evidence that it has been the -custom of the managers of the Erie railway, from -year to year in the past, to spend large sums to control -elections and to influence legislation. In the -year 1868 more than one million ($1,000,000) was -disbursed from the treasury for ‘extra and legal services.’</p> - -<p>“Mr. Gould; when last on the stand, and examined -in relation to various vouchers shown him, -admitted the payment during the three years prior -to 1872 of large sums to Barber, Tweed and others, -and to influence legislation or elections; these -amounts were charged in the ‘India-rubber account.’ -The memory of this witness was very defective as to -details, and he could only remember large transactions, -but could distinctly recall that he had been in -the habit of sending money into the numerous districts -all over the state, either to control nominations -or elections for Senators and members of -Assembly. Considered that, as a rule, such investments -paid better than to wait till the men got to -Albany, and added the significant remark, when<span class="pagenum" id="Page_70">70</span> -asked a question, that it would be as impossible to -specify the numerous instances as it would to recall -to mind the numerous freight-cars sent over the Erie -road from day to day.”</p> - -<p>The report of the committee concludes as follows:</p> - -<p>“It is not reasonable to suppose that the Erie -railway has been alone in the corrupt use of money -for the purposes named; but the sudden revolution -in the direction of this company has laid bare a -chapter in the secret history of railroad management -such as has not been permitted before. It -exposes the reckless and prodigal use of money, -wrung from the people, to purchase the election of -the people’s representatives and to bribe them when -in office. According to Mr. Gould, his operations -extended into four different states. It was his -custom to contribute money to influence both -nominations and elections.”</p> - -<p>Mr. Adams did not have this report before him -when he wrote his “chapter.” His record closes in -1868, soon after Mr. Gould had been elected president -of the road. This had been brought about in -the following manner: While Gould was engaged -in “fixing” the legislature, and the courts were filled -with Erie suits, the various parties in interest got -together and effected a compromise. Vanderbilt -got rid of the useless stock he had bought at high -figures. Drew pocketed his profits and returned -from exile in Jersey. The Boston, Hartford and -Erie crowd which had figured in these transactions,<span class="pagenum" id="Page_71">71</span> -having got all they could out of Erie for the benefit -of their own bankrupt road, withdrew. All litigation -was stopped and injunctions revoked. Bills were -rushed through the legislature favorable to both -Vanderbilt and Erie. Drew resigned from the road; -Vanderbilt relinquished his ambition for control, -and the property was turned over to Gould and -Fisk. Drew may have thought that by this time the -poor old road was a squeezed lemon, but if so he -was mistaken, for Gould and Sage found that the -property had not yet been worked for all that was -in it. What their administration cost the road is -very plainly set forth in the testimony given before -the Hepburn Committee of 1879, by J. W. Guppy, -assistant general superintendent under Gould, and -for many years connected with the road into whose -service he first entered as a telegraph operator. -When Gould was ousted from the control in March, -1872, the total stock was $86,536,910, the funded -debt $26,395,000 and the floating debt $2,517,301, a -total of $115,449,211, an increase during the time of -Gould’s identification with the road of $64,383,268. -Yet Mr. Guppy testified that not a dollar of this -vast sum was represented by any additions to the -road.</p> - -<p>At the time that the Gould-Fisk ring was sucking -the life-blood of Erie, the Tweed-Sweeny ring -was plundering the city of New York. The two -were really one. From Mr. Gould’s testimony just -quoted and from other facts here presented, it will -be seen how closely allied they were. Tweed was<span class="pagenum" id="Page_72">72</span> -one of the executive committee of the Erie and was -paid large sums for so-called “legal” services. This -was a great day for the spoilsmen. It was a long -feast of corruption. Dishonesty walked openly in -the streets, bribery influenced elections and controlled -legislatures, and plundering was a fine art. -Great as was Tweed at this time, his prosperity was -soon to end in flight, capture, imprisonment, disgrace -and death, but Gould survived the exposure -and lived to enjoy his wealth and power.</p> - -<hr /> - -<div id="toclink_73" class="chapter"> -<p><span class="pagenum" id="Page_73">73</span></p> - -<h2 class="nobreak" id="CHAPTER_VII">CHAPTER VII.<br /> - -<span class="subhead">GOULD’S VICTORY AND FINAL DEFEAT IN ERIE.</span></h2> -</div> - -<p class="drop-cap"><span class="smcap1">During</span> these years of Erie conflicts, Gould not -only fought his enemies most bitterly, but hardly -appreciated the usual feelings of men to be true -to their friends. Gould and Fisk now had practical -control of Erie. They saw the October election -coming, and they were nervous. But the -crops were good and Erie’s traffic brought in good -returns. Englishmen had become strangely fascinated -with the stock, and had bought over 100,000 -shares. On August 19th the stock had dropped to -44, and then to the astonishment of Wall street, -the transfer books were closed, preparatory to the -annual election on October 13th. The election went -off well for Mr. Gould and his friends. Peter B. -Sweeny and William M. Tweed were among the -new directors. Then, it is said Mr. Gould began a -system of locking up money. This culminated on -October 27th, when members of the New York Stock -Exchange waited on Mr. Gould, who had obtained -large loans on Erie. Mr. Gould told the committee -that $10,000,000 of convertible bonds had been issued, -half of which had been converted into stock and the -rest would be. This was a new issue. The money, -he said, had been used to purchase the $5,000,000 of<span class="pagenum" id="Page_74">74</span> -Boston, Hartford and Erie. The committee was -not satisfied. It wanted to know if more stock would -be issued. Gould replied: “In certain contingencies,” -meaning for his loans. The Secretary of the -Exchange afterward said that the stock of the corporation -had been increased from $34,265,300 on July 1, -1868, to $57,766,300 on October 24th, or by 235,000 -shares within four months. These new issues forced -Erie to 35. There was over $12,000,000 in greenbacks -locked up and all values were depressed. The situation -was so serious that Secretary McCulloch of -the treasury, a contractionist, was compelled to announce -that if necessary $50,000,000 additional currency -would be forthcoming for the relief of the -community.</p> - -<p>Their next achievement, after securing entire -possession, was to corner their old associate Daniel -Drew. The latter, after a short retirement from the -street, returned to speculation and naturally drifted -into Erie, but this time from the outside. He was -caught just as many times he had caught others. -And Gould repeated, only in a more aggravated -way, his trick of issuing new stock and flooding Wall -street with it. This new stock was issued by Gould -and Fisk without even going through the form of -consultation with the other directors. Mr. Adams -calls this “the most extraordinary feat of financial -legerdemain which history has yet recorded.” Drew -found that even he, old and experienced in all the -tricks of his trade, was no match for Gould. He -appealed to the courts for relief, but Mr. Gould<span class="pagenum" id="Page_75">75</span> -fought him in the same way. Realizing that he had -no other avenue of escape, Drew actually called on -Gould and Fisk one night and appealed piteously -to be permitted to get out without loss, though his -companions in loss might be squeezed to Gould’s -heart’s content. Gould and Fisk bowed their aged -associate out without satisfaction and smiled as they -closed the door on the old man.</p> - -<p>That was on a Sunday. Next day, in the name -of August Belmont, Justice Sutherland was asked to -enjoin the issue of any more new Erie stock and to -appoint a receiver. Drew signed the affidavits, but, -to his chagrin, Gould was ahead of him by two -hours. On the petition of one McIntosh, a man in -Gould’s employ, Justice Barnard restrained all suits -and appointed Gould the receiver of the railroad. -Erie stock fell only to 48.</p> - -<p>Justice Barnard allowed Mr. Gould to buy and -cancel 200,000 shares of Erie. This was intended to -crush Daniel Drew, who had to have 70,000 shares to -deliver in a few days. Gould’s purchases rushed -the stock to 62, and then it turned out that thousands -of shopkeepers and barbers, tailors, and all sorts of -people, had a share or ten shares of Erie and wanted -to realize on them. Gould could not meet the rush -of shares these people had to sell. He and Fisk -fought like tigers, but they could not stand the -drain, and Drew settled his contracts at 57, losing -$1,500,000. Then Erie fell to 42. The Open Board -of Brokers refused to deal in Erie unless the stock -was registered at a reputable banker’s. Erie was<span class="pagenum" id="Page_76">76</span> -knocked off the list and Gould organized a new -Board of his own, where trading in Erie went on as -before.</p> - -<p>Gould at this time actually posed as an anti-monopolist -before the public. All his extraordinary -acts as president of the Erie were defended on the -ground that he was endeavoring to protect the system -against consolidation or affiliation with other -trunk lines, and there were some honorable persons -who really put faith in this statement. “Gould,” -said Mr. Adams, “posed as a public benefactor, with -unspeakable effrontery.”</p> - -<p>There was more fighting in the courts over Erie. -Justice Sutherland vacated Barnard’s order making -Gould receiver, and Noah Davis was made receiver. -Barnard stayed Sutherland, and Sutherland granted -a motion to show cause why Barnard’s stay should -not be vacated. Gould and Fisk sued August Belmont -for $1,000,000 damages, and Frank Work and -Richard Schell for $429,250, paid to them at the -time of the settlement with Vanderbilt. Gould and -Fisk even went to the United States District Court, -and on a petition of one of Gould’s clerks, Henry D. -Whelpley, a stockholder, Judge Blatchford appointed -Gould receiver, and directed the Erie company -to place $8,000,000 in his hands to protect the -rights of the plaintiff, Whelpley, who protested that -he had been injured by certain issues of stock.</p> - -<p>The marvelous business acumen displayed by -the manipulators of these properties was aided by -the blind zeal of certain foreign investors for American<span class="pagenum" id="Page_77">77</span> -securities then as prevalent as now. The wonderful -financial operations of the Drew and Gould -regimes in Erie could not have been possible but -for the extraordinary fascination which the stock -possessed for English capitalists. While Americans -looked with more than suspicion on the Erie securities, -England was possessed of an irresistible craze -to get as many of them as possible. English capitalists -would not take the United States bond even -when selling below par, but they bought with avidity -every share of Erie they could get hold of. At -last, however, the eyes of the English stockholders -were opened to the true condition of affairs, and -under the lead of James McHenry they organized -to get the control of the property. At this time -Gen. Daniel E. Sickles, one of the heroes of Gettysburg, -was Minister to Spain. He was engaged to -lead the anti-Gould forces against the Erie strongholds. -He did his work well, and it is said was -paid a very big fee for his labors. He obtained a -leave of absence from Madrid and returned home to -conduct the operations in person on the ground. -This was the last of the Erie wars.</p> - -<p>It should be recorded at this time, however, that -the famous partnership of Gould and Fisk had been -dissolved by death. Fisk, late in 1871, had been shot -by Edward F. Stokes, and after a few days had died -from the wound. He and Stokes had at one time -been friends but had quarreled over business matters -and about a woman—the beautiful, but notorious -Josie Mansfield—and the quarrel led to the<span class="pagenum" id="Page_78">78</span> -murder. It will surprise no one who has read this -history thus far that in the course of the Erie litigations -a Supreme Court judge once held court and -issued orders from Josie Mansfield’s apartments. -Stokes was tried three times. Once the jury disagreed. -Once he was convicted of murder in the -first degree and sentenced to be hanged by Judge -Noah Davis. This verdict being overruled by the -Court of Appeals, he was tried again and convicted -of manslaughter in the third degree. After serving -a few years in Auburn prison Mr. Stokes returned to -New York, where he soon became a prosperous -business man, intimate for a long time with John A. -Mackay, the California millionaire, and president of a -telegraph system competing with Gould’s Western -Union.</p> - -<p>Before his death the belief is that Gould and -Fisk had substantially parted company. The New -York <cite>World</cite> of that day gives an account of an interview -between Gould and Fisk, in which the former -asked Fisk for his resignation as vice-president and -comptroller of Erie. Fisk is represented as saying -to a friend who was about to leave for Europe: “I -would like you to do me a favor. If you find in -Europe a mean man who can do a meaner thing to -his best friend or tell a bigger lie than Jay Gould, I -want you to telegraph me at once.” After Fisk’s -death, however, Gould acted handsomely by his -widow. Whatever else may be said of Fisk, he was -certainly a more popular man than Gould, and after -the former’s death Gould did not long remain at the<span class="pagenum" id="Page_79">79</span> -head of Erie. “The feeling against Gould,” said -Gen. Barlow, at the time of the anti-Gould revolution, -“grew in great part since Fisk’s death. Fisk -was always popular with the people of the road and -in the office. Had he been alive we should have -had more trouble, or perhaps the move would never -have been made.”</p> - -<p>Besides Barlow, Gen. Sickles had other efficient -aid, and the anti-Gould movement was strengthened -by such names as Gen. John A. Dix, who in -the same year was elected governor of New York, -Gen. George B. McClellan and William R. Travers.</p> - -<p>In March, 1872, the blow was struck. A man -named Archer had been elected vice-president in -place of Fisk, and with his aid the revolution was -accomplished. Gould had made him vice-president -with the view of conciliating the opposition. Nine -members of the Board of Directors had been won -over to the opposition. These wrote to Gould, asking -him to call a meeting of the board. As Gould -did not respond, Vice-President Archer called the -meeting. The revolutionists assembled at Barlow’s -house and prepared to carry the Grand Opera House -by storm. Gould had this barricaded by his men, -with instructions to permit no one to pass in. But -the revolutionists succeeded in passing the picket -line and passed in, and Mr. Archer called the meeting -to order. Then ensued an extraordinary scene -which lasted all night. Gould ordered the “conspirators,” -as he called them, to leave the building. -They refused. Gould at this time had the benefit of<span class="pagenum" id="Page_80">80</span> -the legal advice of David Dudley Field and Thomas -G. Shearman. Mr. Field was long one of the leaders -of the New York bar. One of his brothers sat -on the Supreme Court bench of the United States, -and the other, Cyrus W. Field, was the father of the -Atlantic cable, and soon one of the closest of -Gould’s business associates. Mr. Shearman, who -afterward became famous in the defense of Henry -Ward Beecher, had before this time published an -article on the corruption of the New York judiciary, -which attracted widespread attention, but he was -now counsel to a man who owned two or three Supreme -Court judges and a few months later publicly -admitted the distribution of a corruption fund.</p> - -<p>Space will not permit the telling of all the incidents -of that night. Shearman appeared with forty -policemen and ordered the revolutionists to leave, -but they shut themselves up in their rooms and refused -to do so. Gould obtained from Judge Ingraham -a temporary injunction to restrain Archer and -the other directors from acting, but they calmly -proceeded to elect new officers and directors. Field -and Shearman declared that Gould’s legal position -was absolutely perfect, but notwithstanding this he -was finally obliged to give in. The opposition -elected Gen Dix as president and Gen. McClellan -as one of the directors.</p> - -<p>The <cite>World</cite> of March 11, 1872, thus describes this -memorable night:</p> - -<p>“The scene at the Grand Opera House was one -to be remembered. Gould and Eldridge, with their<span class="pagenum" id="Page_81">81</span> -counsel, in one room and the newly chosen directors -in another, the doors of both rooms barred, opening -to no one but an avowed friend, each fearful of orders -of arrests being served on them, every spare -room in the offices filled with blue-coated officers of -the peace, sitting in all the chairs and on all the -tables and lying on the floors, and an intense sense -of subdued excitement pervading the heavy air of -the place.</p> - -<p>The only communication between the two hostile -parties was by means of Peter B. Sweeney, who -acted as go-between.</p> - -<p>Finding that he was defeated, Gould then resorted -to one of those acts of audacity with which -at different periods in his career he has surprised -the public. In a public letter he offered to leave all -the questions in dispute to arbitration by Horace -Greeley. Thus he attempted to place himself in -favorable light before the public. But it should not -be supposed that Greeley was in any sense a friend -of Gould. On the contrary, the <i>Tribune</i> of that day -shows how severely he criticised Gould.</p> - -<p>The battle lasted one night and then Gould surrendered. -He remained as a director for a time, -but his power was gone and Erie passed out of his -hands forever. The property has never fully recovered -from the condition into which it was thrown by -the Drew-Gould regime. Though one of the most -important systems in the country and enjoying an -immense business, it is crippled with its enormous -stock and bond liabilities, and not until 1891 did it<span class="pagenum" id="Page_82">82</span> -pay a dividend. For many years it remained in the -hands of a receiver.</p> - -<p>The testimony of J. W. Guppy before the Hepburn -Committee, already referred to, gives some -interesting details of Gould’s management of the -Erie. Among the roads which Erie leased were -the Chemung railroad and the Canandaigua and -Elmira. These leases were very profitable to Erie, -but Gould, as an individual, after quietly purchasing -a majority of their capital stocks, as president of -Erie refused to pay the rentals, thus abrogating the -leases. Then he sold the roads to the Northern -Central of Pennsylvania at a big profit. Gould and -Fisk organized a number of auxiliary companies -whose plant was usually paid for by Erie, but whose -stock went into the pockets of Gould, Fisk and their -associates. Among these companies was the National -Stock Yard Company. The land was purchased and -the improvements made by Erie, but the stock was -divided as so much spoils, 800 shares finding their -way into the pockets of Judge Barnard. The Erie -Emigrant Company, the Jefferson Railroad Company, -the Blackford Company and the Greenwood Coal -Company were the names of some of the companies -practically saddled upon Erie, but whose stock was -issued to Gould and Fisk without consideration.</p> - -<p>August Stein, who made an examination into the -records, told the Hepburn Committee that the -amount of Gould’s wrong-doing in Erie was about -$12,000,000. By this was meant the amount which -he wrongfully appropriated.</p> - -<p><span class="pagenum" id="Page_83">83</span></p> - -<p>Mr. Gould’s smartness was never made more -apparent than in his manner of pretending to restore -the money which he had misappropriated. He had -to make restitution of this stolen money—“stolen” -is the word used by the Hepburn Committee. After -he had left Erie, the new management sought to -ascertain how large was the plunder carried away by -Gould. This information could be obtained with -complete accuracy only from Morosini, the auditor -of the company, and he refused to make up the -accounts, leaving Erie to join his fortunes with those -of Gould. Morosini now became inseparable from -Gould and a notable figure in Wall street. He was -a tall, athletic Italian, shrewd and faithful, an ideal -private secretary. He had served with Garibaldi -in the wars for Italian liberty, and was proud of his -service under the great Italian patriot. He had -been a sailor, too, and had a wide experience with -the world, which, while not making him overscrupulous -in his methods, made him invaluable to a man -like Gould. When the firm of W. E. Connor & Co., -of which Gould was a special partner, was founded, -Morosini became partner, and when the firm dissolved, -and Morosini retired from business, Gould -said that his private secretary was worth $2,000,000 -or $3,000,000.</p> - -<p>A way was opened, however, by which the new -Erie management gained some proof of Gould’s -wrong-doing. Gould, in company with Horace F. -Clark, had engineered a corner in Northwestern -stock, one of the most famous and successful corners<span class="pagenum" id="Page_84">84</span> -in Wall street history. In after years, Gould -gave a unique account of this corner to a legislative -committee which was investigating corners. “I was -interested,” said Mr. Gould, with that charming -frankness which he sometimes assumed, “in the Chicago -& Northwestern corner. The stock was selling -at seventy to eighty. I considered it very cheap,” -so he bought. He soon had bought a great deal -more than there really was to deliver, and the shorts -were cornered. The price went up to $250. “I was -induced,” said Mr. Gould, with most exquisite -humor, “to part with some at that price.”</p> - -<p>Among the shorts caught in this famous corner -was Henry N. Smith, who only a short time before -had been Gould’s partner in the firm of Smith, Gould -& Martin, and who had supported Gould in his great -conspiracy to corner gold. Smith is another noted -Wall street character, whose life is linked in that of -Gould. He was something of an “exquisite,” and -had the reputation of wearing corsets, but he was -for many years remarkably successful in Wall street. -After renewing his relations with Gould he became -chiefly distinguished as one of the bear leaders, and -was thus continually in antagonism with Gould. -Woerlshoffer, Cammack and Smith were a trio that -once nearly drove Gould to the wall, but the latter -lived to see one dead, the second his associate in -certain speculations, and the third involved in irretrievable -bankruptcy.</p> - -<p>It was not in the Northwest corner that Smith -was ruined, but in it he lost a very large sum, which<span class="pagenum" id="Page_85">85</span> -found its way into Gould’s pockets. Smith was not -slow in getting his revenge. The books of the late -firm of Smith, Gould & Martin were in his possession, -and he handed them over to Mr. Barlow, of the -Erie, who quickly discovered in them the evidence -on which to obtain an order of arrest for Gould -and to establish a suit for the recovery of $12,803,059, -the proceeds of bonds converted into stock to -the extent of 407,347 shares, which were sold by -Mr. Gould’s firm and the proceeds transferred to -his pocket. That was the charge, and Gould was -arrested and placed under very heavy bonds, which -he furnished. Here Mr. Gould’s genius displayed -itself. He actually entered into a big speculation -based on his restitution of this plunder. Gen. Dix, -it should be recorded, remained as president of Erie -for only a few months, and was succeeded by President -Watson, a man who owed his position mainly to -Horace F. Clark, who, as has been seen, was in intimate -business relations with Gould. Clark undertook -to arrange a compromise between Watson and -Gould, and all three evidently united to “rig” the -stock market by the operation. One day it was reported -that Gould intended to restore his plunder, -and the price of Erie advanced with a bound. A -day or two later a denial of the report would come, -and down would go the price. This was repeated -two or three times and Gould, of course, bought at -the low figures and sold at the top, and the profits -must have been big. Finally the restitution, so-called, -was announced with a flourish of trumpets.<span class="pagenum" id="Page_86">86</span> -On the face of the agreement Gould made over to -Erie an immense amount of property and all suits -were withdrawn and Gould released from all criminal -responsibility. A clause in the agreement said that -in making this transfer of property Gould expressly -stipulated that it should not be considered as an admission -of wrong-doing. The Opera House and -adjoining buildings and other real estate, with the -exception of Gould’s Fifth avenue mansion, were -made over to the Erie, and, in addition, a mass of -stocks of the par value of about $6,000,000. As a -matter of fact most of these stocks were worthless. -J. G. Guppy told the Hepburn Committee that he -would not give $200,000 for the entire lot. Among -the securities were $1,000,000 of United States -Express stock to be issued, and which Gould guaranteed -to be issued, but which, as a matter of fact, -never was. When Hugh J. Jewett became receiver -of Erie he discovered the utter sham of this alleged -restitution. He told the Hepburn Committee: -“Mr. Watson had made a settlement with Mr. Gould, -in which he received in liquidation of this account, -or such portion of it as he supposed he could recover, -certain assets. When I came here I sought to realize -on these assets. I found many of them totally -worthless, and some which were of value were encumbered -by existing liens.”</p> - -<p>By the closing of these transactions Mr. Gould -was entirely freed from all connection with Erie and -was enabled to seek new fields for cultivation. It -had been a few years before, during the Erie troubles,<span class="pagenum" id="Page_87">87</span> -that Gould and his coadjutors originated the scheme -for cornering gold, which consummated on the day -which is now remembered as “Black Friday,” the -other most disgraceful of the conspiracies of his -life.</p> - -<hr /> - -<div id="toclink_88" class="chapter"> -<p><span class="pagenum" id="Page_88">88</span></p> - -<h2 class="nobreak" id="CHAPTER_VIII">CHAPTER VIII.<br /> - -<span class="subhead">THE GOLD CONSPIRACY.</span></h2> -</div> - -<p class="drop-cap b"><span class="smcap1">“Black</span> Friday,” that darkest day in the financial -history of America, was not the creation -of sudden circumstance, but the culmination of a plan -conceived by Gould and his associates, with all its -details arranged for weeks before. Whether the -whole truth has ever been written about Mr. Gould’s -gold operations is open to doubt. The explanation -given by Henry Clews, in his noted work, “Twenty-eight -years in Wall Street,” seems a trifle naive -to those who are not so deeply initiated in Wall -street methods. He says:</p> - -<p>“In the year 1869, this country was blest with -abundant crops far in excess of our needs, and it was -apparent that great good would result from any -method that could be devised to stimulate exports -of a part, at least, of the surplus.</p> - -<p>“Letters poured into Washington by the thousand -from leading bankers, merchants and business -men, urging that the Treasury department abstain -from selling gold, as had been the practice for some -time, so that the premium might, as it otherwise -would not, advance to a figure that would send our -products out of the country, as the cheapest exportable -material in place of coin, which, at its then artificially<span class="pagenum" id="Page_89">89</span> -depressed price, was the cheapest of our -products, and at the same time the only one undesirable -to part with. So the government decided to -suspend gold sales indefinitely.</p> - -<p>“Jay Gould and others, being satisfied that this -was to be the policy of the administration, commenced -at once buying large amounts of gold, -actuated, doubtless, by the purest of patriotic motives, -namely, to stimulate cotton and cereal exports. -They succeeded in accumulating a considerable -amount of gold at prices ranging from 135 to 140, -covering a period of three months’ steady buying.</p> - -<p>“This was the honest foundation on which the -great ‘Black Friday’ speculative deal was erected.</p> - -<p>“The eruption on ‘Black Friday’ was really caused -by the erratic conduct of James Fisk, Jr., who -actively joined the movement on Thursday, the day -before, and became wild with enthusiasm on the -subject of high gold.”</p> - -<div id="i_88" class="figcenter" style="max-width: 25em;"> - <img src="images/i101.jpg" width="1594" height="2612" alt="" /> - <div class="caption"><p>The Men of Black Friday.</p> - -<p>1.—<span class="smcap">Jay Gould.</span> 2.—<span class="smcap">Jim Fisk, Jr.</span> 3.—<span class="smcap">Daniel Drew.</span> -4.—<span class="smcap">Commodore Vanderbilt.</span> 5.—<span class="smcap">Peter B. Sweeny.</span> 6.—<span class="smcap">E. R. Stokes.</span></p></div></div> - -<p>The “Black Friday” scheme was the most gigantic -one that Wall street had ever seen. This gold -conspiracy was investigated in 1870 by a committee -of Congress, of which James A. Garfield, afterward -President, was chairman, and S. S. Cox, a member. -The investigation undertaken went far enough to -show how zealously the conspirators labored to get -Grant within their toils and implicated persons near -to him. Unfortunately, too, the President had innocently -enough permitted himself to be put in a suspicious -position, and it was long before he was -completely purged of the scandal.</p> - -<p><span class="pagenum" id="Page_90">90</span></p> - -<p>The report of the committee, with the accompanying -testimony, is absorbingly interesting:</p> - -<p>“Gould, the guilty plotter of all these criminal -proceedings,” is the language of James A. Garfield, -the author of this report.</p> - -<p>Gould some years before had formed a co-partnership -with H. N. Smith and others under the name -of Smith, Gould, Martin & Co. “He was a broker,” -says Henry Adams in his history of the gold conspiracy, -“and a broker is almost by nature a gambler, -perhaps the very last profession suitable for a -railway manager. In character he was strongly -marked by his disposition for silent intrigue. He -preferred, as a rule, to operate on his own account -without admitting other persons into his confidence, -and he seemed never to be satisfied except when -deceiving everyone as to his intentions. There was -a reminiscence of the spider in his nature. He spun -huge webs in corners and in the dark, which were -seldom strong enough to resist a serious strain at the -critical moment. His disposition to this subtlety -and elaboration of intrigue was irresistible. It is -scarcely necessary to say that he had not a conception -of a moral principle. In speaking of this class -of men, it must be fairly assumed at the outset that -they do not, and can not, understand how there can -be a distinction between right and wrong in matters -of speculation, so long as the daily settlements are -punctually effected. In this respect, Mr. Gould was -probably as honest as the mass of his fellows, according -to the moral standard of the street; but without<span class="pagenum" id="Page_91">91</span> -entering upon technical questions of roguery, it is -enough to say that he was an uncommonly fine and -unscrupulous intriguer, skilled in all the processes of -stock gambling, and indifferent to the praise or censure -of society.”</p> - -<p>It was one of Mr. Gould’s peculiarities that he -rarely entered into any large speculation without -furnishing the public with a plausible reason for -assisting him in his operations. This was certainly -the case in the gold conspiracy. The plausible -reason was in this case suggested to Mr. Gould by -James McHenry, who was then training with Mr. -Gould in Erie. The latter spared no pains to dress -the reason up in the best shape and give it to the -public. Mr. Gould argued with much apparent -force, but actual sophistry, that an advance in the -price of gold would benefit the Western farmers in -giving them a bigger price for their grain, and Mr. -Gould backed up this theory with many facts and -figures. Gen. Grant had just become President. -His Secretary of the Treasury was George F. Boutwell. -The key to the situation was the financial -policy of the government. No successful corner in -gold could be established if the Treasury should sell -gold with a liberal hand. It should be explained -that the war had caused a lively speculation in gold, -which continued after the war until the resumption -of specie payments made the greenbacks equal in -value to gold. Speculation in gold was carried on -in the gold-room, an institution separate from the -Stock Exchange.</p> - -<p><span class="pagenum" id="Page_92">92</span></p> - -<p>It became essential to the success of Mr. Gould’s -plans that the Grant administration should either -become a party to the speculation or else an honest -believer in his crop theory. Failing in both of these, -the public must at least be impressed with the idea -that the administration was in the deal whether it -was or not. So Gould began to lay systematic siege -around the administration. He seems to have -entered alone into this speculation. It was only -when he was unable to carry the burden alone that -he took in others, and it was not until late in the -game that Fisk entered, Gould found a brother-in-law -of President Grant a convenient tool in his -operations. The name of this brother-in-law was -A. R. Corbin, who had been something of an adventurer -all his life, and whose chief hold on respectability -was his relationship to the President. Gould -unfolded enough of his plans to Corbin to enlist him -in his service and to bind him by interest to the -speculation. Gould bought for Corbin $1,500,000 of -gold, and promised him that all the profits should -be turned over to him. Every rise of one per cent. -in the price of gold made Corbin $15,000 richer. -Corbin claimed to have great influence with the -President, and Gould evidently placed much reliance -in him. “I am right behind the throne,” said Corbin -to Gould at one stage of the proceedings. -“Give yourself no uneasiness. All is right.”</p> - -<p>Mr. Henry Adams, in his celebrated chapter, “The -New York Gold Conspiracy,” makes the following -interesting explanation of circumstances preliminary<span class="pagenum" id="Page_93">93</span> -to “Black Friday:” “In order to explain the operation -of a so-called corner in gold to ordinary -readers with the least possible use of slang or technical -phrases, two preliminary statements are necessary. -In the first place, it must be understood that -the supply of gold immediately available for transfers -is limited within distinct bonds in America. -New York and the country behind it contain an -amount usually estimated at about $20,000,000. The -national government commonly holds from $75,000,000 -to $100,000,000, which may be thrown bodily on -the market if the President orders it. To obtain -gold from Europe, or other sources, requires time.</p> - -<p>“In the second place, gold in America is a commodity -bought and sold like stocks. In gold, as in -stocks, the transactions are both real and speculative. -The real transactions are mostly purchases or -loans made by importers who require coin to pay -custom on their imports. The speculative transactions -are mere wagers on the rise or fall of price, -and neither require any actual transfer of gold, or -even imply its existence, although in times of excitement -hundreds of millions nominally are bought, -sold and loaned.</p> - -<p>“Under the late administration, Mr. McCulloch, -then Secretary of the Treasury, had thought it his -duty at least to guarantee a stable currency, although -Congress forbade him to restore the gold -standard. During four years gold had fluctuated -little and principally from natural causes, and the -danger of attempting to create an artificial scarcity<span class="pagenum" id="Page_94">94</span> -in it had prevented the operators from trying an -experiment which would have been sure to irritate -the government. The financial policy of the new -administration was not so definitely fixed, and the -success of the speculation would depend on the -action of Mr. Boutwell, the new secretary, whose -direction was understood to have begun by a marked -censure on the course pursued by his predecessor.</p> - -<p>“Of all financial operations, cornering gold is the -most brilliant and the most dangerous, and possibly -the very hazard and splendor of the attempt were -the reasons of its fascination to Mr. Jay Gould’s -fancy. He dwelt upon it for months and played -with it like a pet toy. His fertile mind even went -so far as to discover that it would prove a blessing -to the community, and on this ingenious theory, -half honest and half fraudulent, he stretched the -widely extended fabric of the web in which all mankind -was to be caught. This theory was in itself -partially sound. Starting from the principle that -the price of grain in New York is regulated by the -price in London, and is not effected by currency -fluctuations, Mr. Gould argued that if it were possible -to raise the premium on gold from 30 to 40 -cents at harvest time, the farmer’s grain would be -worth $1.40 instead of $1.30, and as a consequence -the farmer would hasten to send all his crop to New-York -for export over the Erie railway, which was -sorely in need of freight. With the assistance of -another gentleman, Mr. Gould calculated the exact -premium at which the western farmer would consent<span class="pagenum" id="Page_95">95</span> -to dispose of his grain, and thus distance the three -hundred sail which were hastening from the Danube -to supply the English market. Gold, which was -then heavy at 34, must be raised to 45.</p> - -<p>“This clever idea, like all the other ideas of these -gentlemen of Erie, seems to have had the single -fault of requiring that some one somewhere should -be swindled. The scheme was probably feasible; -but sooner or later the reaction from such an artificial -stimulant must have come, and whenever it -came, some one must suffer. Nevertheless, Mr. -Gould probably argued that so long as the farmer -got his money, the Erie railway its freights, and he -himself his small profits on the gold he bought, it -was of little consequence who else might be injured; -and indeed by the time the reaction came, and gold -was ready to fall as he expected, Mr. Gould would -probably have been ready to assist the process by -speculative sales in order to enable the Western -farmer to buy his spring goods cheap, as he had -sold his autumn crops dear. He himself was equally -ready to buy gold cheap and sell it dear on his private -account, and as he proposed to bleed New York -merchants for the benefit of the Western farmer, so -he was willing to bleed Broad street for his own. -The patriotic object was, however, the one which, -for obvious reasons, Mr. Gould preferred to put forward -most prominently and on the strength of which -he hoped to rest his ambitious structure of intrigue.”</p> - -<p>Here is the story in brief: In March, 1869, the -price of gold touched 130¼, which was the lowest<span class="pagenum" id="Page_96">96</span> -figure that it had reached in three years. Jay Gould, -as president of the Erie railway and the principal -owner of the Tenth National Bank, had the command -of large sums of money. He proposed to Fisk -that they take advantage of the low price of gold -and “corner” it. Fisk did not think the scheme -practicable, and declined at first to go in. Subsequently -he reconsidered his determination and joined -in the undertaking zealously. Gould bought $7,000,000 -of gold at 132 and put up the price to 140. He -induced other brokers to buy heavily, and within a -few days gold advanced to 144. It soon dropped -back to 136. The element of uncertainty in Mr. -Gould’s plan was the policy of the government with -reference to gold sales. Should the government at -any time release some of the millions stored in the -Sub-Treasury here, no “corner” could be successful.</p> - -<p>The first step in the conspiracy after the bribing -of Corbin and the purchase of a large quantity of -gold was to secure the appointment of the right sort -of man as Assistant Treasurer at New York. Though -nominally a subordinate officer and having no original -authority, the assistant treasurer draws the salary -of a cabinet officer, and his influence is large. -Corbin undertook this part of the scheme and -secured the appointment of Gen. Butterworth, -who seemed to give great satisfaction to Gould. -Butterworth was afterward exonerated by Congress -of all guilty connection with the gold conspiracy, -but Gould purchased for his account $1,000,000 of -gold. But then Gould also had the effrontery at<span class="pagenum" id="Page_97">97</span> -one stage of the negotiations to buy $500,000 of gold -for Gen. Porter, the President’s private secretary, -which that gentleman promptly declined. It was -said, also, that $500,000 was purchased in the name -of Mrs. Grant, but she never received any of the -profits and had no connection with the conspiracy.</p> - -<p>Butterworth secured, it was necessary to make -an impression on the President. Says Mr. Adams: -“On the 15th of June, 1869, the President came -to New York, and was there the guest of Mr. Corbin, -who urged Mr. Gould to call and pay his respects to -the chief magistrate. Mr. Gould had probably -aimed at precisely this result. He called, and the -President of the United States not only listened to -the president of Erie, but accepted an invitation to -Mr. Fisk’s theatre, sat in Mr. Fisk’s private box, -and the next evening became the guest of these -two gentlemen on their magnificent Newport -steamer.”</p> - -<p>The President was to be sounded in regard to his -financial policy on the occasion of this memorable -trip to Boston, and when the selected guests sat -down at nine o’clock to supper the conversation was -directed to the subject of finance. “Some one,” says -Mr. Gould, “asked the President what his view was.” -The “some one” in question was, of course, Mr. -Fisk, who alone had the impudence to put such an -inquiry. The President bluntly replied that there -was a certain amount of fictitiousness about the -prosperity of the country, and that the bubble might -as well be tapped in one way as another. The<span class="pagenum" id="Page_98">98</span> -remark was fatal to Mr. Gould’s plans and he felt it, -in his own words, “as a wet blanket.”</p> - -<p>Mr. Fisk, in his testimony, frankly said:</p> - -<p>“On our passage over to Boston with Gen. -Grant we endeavored to ascertain what his position -in regard to finances was. We went down to dinner -about nine o’clock, intending, while we were there, -to have this thing pretty thoroughly talked up, and, -if possible, to relieve him from any idea of putting -the price of gold down.”</p> - -<p>Mr. Gould in his testimony said of the President: -“He was our guest. At this supper the question -came up about the state of the country, the crops, -and the prospects ahead. The President was a -listener; the other gentlemen were discussing. Some -were in favor of Boutwell’s selling gold, and some -were opposed to it. After they had all interchanged -their views, some one asked the President -what his view was. He remarked that he thought -there was a certain amount of fictitiousness about -the prosperity of the country, and that the bubble -might as well be tapped in one way as another. -That was about the substance of his remark. He -then asked me what I thought about it. I remarked -that I thought if that policy was carried out it would -produce great distress, and almost lead to civil war.”</p> - -<p>However, Gould was already in, and he was not -a man to back out as long as he saw any chance for -success, and he finally succeeded in really impressing -on the President’s mind that in order to move -the crops it was necessary that gold should sell at<span class="pagenum" id="Page_99">99</span> -145. Gould’s first purchases had been made as low -as 130¼, which was about the normal price.</p> - -<p>But it should be said at the outset that there is -not a particle of evidence that Gen. Grant was ever -personally concerned in the speculation or that he -winked at members of his official household being -so. On the contrary, the evidence is all the other -way. Grant never seemed to like Gould. When -the latter succeeded in getting his first interview -with the President, Gen. Grant reprimanded his -servant for allowing him so easy an access to his -person, and at a later day the President remarked -to his Secretary that he did not like to have that -man—referring to Gould—around so much. “He -is always trying to get something out of me,” was -the President’s remark.</p> - -<p>After the party returned to New York, Gen. -Grant, Mr. Gould and Mr. Corbin had private interviews -on the gold question at Mr. Corbin’s house. -As a result of these interviews, according to Mr. -Gould’s testimony, the President remarked that the -government would do nothing during the fall -months to put down the price of gold or to make -money tight. Just after those interviews Mr. Gould -purchased two millions in government bonds for -Mr. Corbin’s account. The next interview with -President Grant on this great subject was at Newport, -where James Fisk, Jr., followed him.</p> - -<p>Fisk testified that Corbin told him that Mrs. -Grant had an interest in the gold speculations; that -five hundred thousand of gold had been taken by<span class="pagenum" id="Page_100">100</span> -Mr. Gould at 131 and 132, which had been sold at -137; that Mr. Corbin held for himself about two millions -of gold, five hundred thousand of which was for -Mrs. Grant and five hundred thousand for “Porter.”</p> - -<p>The story of the conspiracy, as Mr. Clews tells it, -is interesting as well, and has certain points of difference -from the others. He says:</p> - -<p>“Although the policy of stopping the sale of gold -had been agreed upon in deference to the views of -the best financiers of the country, yet Mr. Gould and -his fellow strategists thought it was best to make -assurance doubly sure on this point, in order that -nothing might stand in the way of the great speculative -intrigue to get a “corner” in gold. President -Grant was conservative on the subject. The conspirators, -therefore, conceived the design of arranging -things so that Secretary Boutwell could not depart -from this policy, no matter what emergency might -arise.</p> - -<p>“This bold and wicked strategy could only be -successful by first getting President Grant convinced -that the theory of stopping the gold sales was the -only commercial salvation for the country, in the -then condition of business stagnation and the possible -panic threatened. The theory was then to impress -him with the necessity of giving Secretary Boutwell -an absolute order not to sell gold, and afterward to -fix things so that it would be impossible for the -President to revoke that order until the brilliant speculative -purposes of the clique in cornering gold -should be accomplished.</p> - -<p><span class="pagenum" id="Page_101">101</span></p> - -<p>“The scheme was but little short of treason, -regarded from a patriotic point of view, and it is very -questionable if the perpetrators would have stopped -short of this dastardly act had they not been convinced -that their purpose was fully compassed by a -method less villianous and shocking. It was considered -indispensable by the conspirators for the consummation -of their plans that Grant should be got out -of the way by some means or other. Fortunately -for him and for the honor of the nation, the plan -succeeded without the necessity of offering him any -violence.</p> - -<p>“It was arranged that Gen. Grant should accompany -a party one beautiful evening in the -middle of June, who were going to attend the great -Peace Jubilee of Patrick Sarsfield Gilmore in Boston. -Jim Fisk did the executive work in the arrangement. -There was a fine champagne supper on board -the Boston boat and several gentlemen were present -who were thoroughly conversant with financial -question’s and could talk glibly on the state of the -country. Mr. Gould said, in his testimony: ‘I took -the ground that the government ought to let go of -the loan and let it find its commercial level; that in -fact it ought to facilitate an upward movement in -gold in the fall.’</p> - -<p>“This reference to ‘its commercial level’ is rich, -coming from the head center of the plotters who -wanted to put the article up to 200.</p> - -<p>“About the time the above events were transpiring, -the Assistant Secretary of the Treasury, Mr. H.<span class="pagenum" id="Page_102">102</span> -H. VanDyck, resigned his office in this city. Mr. -Gould’s chief ambition was to name his successor in -order that he might be able to control the treasury -when the time to get a corner in gold should be -ripe. Mr. Abel R. Corbin came in quite handy at -this juncture to help to further the designs of Mr. -Gould. He was a man of fair education and considerable -experience both in business and politics. -He had been a lobbyist in Washington for some -years. He was well informed on financial matters, -a pretty good writer, and could talk like a book. -His wife was a sister of Mrs. Grant and he had good -opportunities for reaching the presidential ear, which -he employed to the best advantage.</p> - -<p>“A gentleman named Robert B. Catherwood, who -was married to a step-daughter of Mr. Corbin, was -approached by Gould and Corbin on the subject of -the Assistant Treasurership. They were anxious that -Mr. Catherwood should take the office and told him -that he would make a great deal of money in a perfectly -legitimate manner if he were once installed.</p> - -<p>“So Mr. Catherwood stated in his testimony -before the investigating committee, but he adds: -‘My ideas differed from theirs in what constituted a -legitimate manner and I declined the office.’</p> - -<p>“The office then sought another man in the person -of Gen. Daniel Butterfield. He received the -intimation of his appointment in a very different -spirit from Mr. Catherwood, showing that he was -fully equal to the occasion. He wrote a letter to -Mr. Corbin, thanking him kindly for the offer, saying<span class="pagenum" id="Page_103">103</span> -that he was under numerous obligations to him, -and expressing a hope that he would be eminently -successful in his undertaking. Gen. Butterfield received -his commission in due course.</p> - -<p>“Corbin talked with Grant until he received a -positive assurance that Boutwell was not to sell any -more gold. At a meeting in Grant’s house, where -Gould and Corbin were present, the President said: -‘Boutwell gave an order to sell gold, and I heard of -it and countermanded the order.’</p> - -<p>“It was not until Gould had received positive -assurance from the President’s own lips, that he considered -his scheme perfect. But the links of this -strategic chain were now nearly all forged. The -bankers and merchants were largely in his favor -through commercial necessity, the Sub-Treasury was -‘fixed,’ as he thought, and the executive fiat had -placed the Treasury of the United States itself where -it could not spoil the deal if Grant did not change -his mind. There were reasons, of course, to apprehend -that he would do so in case of an emergency; -for he never was privy to the scheme, no matter -what his traducers and political enemies may have -said.</p> - -<p>“To insure perfect safety, then, Grant must be -put out of the way temporarily. This was the -crowning effort of the conspirators. After the -Boston Peace Jubilee, this Cabal spent the remaining -part of the summer in maturing its designs.</p> - -<p>“It seemed necessary that all the members of the -Cabal should be fully acquainted with the combination<span class="pagenum" id="Page_104">104</span> -to Grant’s purposes as regarded his orders to -Boutwell, and that his ideas should remain fixed on -the theory of increasing exportation for the country’s -safety. Accordingly, it was arranged that Jim -Fisk should visit the President at Newport, where he -was on a visit, some time about the middle of August, -a month or so prior to Black Friday. It would -seem that Grant at this date was still wavering and -adhering to his policy of selling gold, in spite of the -order which he had given Boutwell. He may have -been suspecting that the anxiety of Gould, Corbin -& Co. for the prosperity of the country was not altogether -genuine. The necessity of bringing further -pressure to bear upon him was, therefore, clearly -manifest.</p> - -<p>“Referring to the interview at Newport, Fisk said: -‘I think it was some time in August that General -Grant started to go to Newport. I then went down -to see him. I had seen him before, but not feeling -as thoroughly acquainted as I desired for this purpose, -I took a letter of introduction from Mr. Gould, -in which it was stated that there were three hundred -sail of vessels then on the Mediterranean, from the -Black Sea, with grain to supply the Liverpool market. -Gold was then about thirty-four. If it continued at -that price, we had very little chance of carrying -forward the crop during the fall. I know that we -felt nervous about it. I talked with Gen. Grant -on the subject and endeavored, as far as I could, to -convince him that his policy was one that would -only bring destruction on us all. He then asked me<span class="pagenum" id="Page_105">105</span> -when we should have an interview, and we agreed -upon the time. He said: ‘During that time I will -see Mr. Boutwell, or have him there.’</p> - -<p>“The President was carefully shadowed after -this by the detectives of the clique, and great care -was taken to throw men across his path who were -fluent talkers on the great financial problem of the -day, the absolute necessity of stimulating the export -trade and raising the premium upon gold for that -patriotic purpose. In this way, President Grant -began to think that the opinion of almost everybody -he talked with on this subject was on the same side, -and must, therefore, be correct.</p> - -<p>“About the first of September, it was considered -that the opinions of the President had been worked -up fairly to the sticking point, and Gould bought -$1,500,000 in gold at 132½ for Corbin. Gould, however, -was timid in his purchasing at first, as he had -heard that a number of operators who were short of -gold were making arrangements to give Secretary -Boutwell a dinner. On further assurance from Corbin -that the President had written Boutwell to sell -no gold without consulting him, Gould prepared to -go ahead with the execution of his great scheme. -Nothing remained to be done in the completion of -the plot except to stow away the President in a -place of safety until the financial storm should blow -over.”</p> - -<hr /> - -<div id="toclink_106" class="chapter"> -<p><span class="pagenum" id="Page_106">106</span></p> - -<h2 class="nobreak" id="CHAPTER_IX">CHAPTER IX.<br /> - -<span class="subhead">CULMINATION OF CONSPIRACY—BLACK FRIDAY.</span></h2> -</div> - -<p class="drop-cap b"><span class="smcap1">September</span> is the memorable month of the gold -conspiracy in Wall street. Between the 20th of -August and the first of September, Gould, in company -with Woodward and Kimber, two large speculators, -made a pool to raise the premium on gold, -and some ten or fifteen millions were bought, but -with very little effect on the price.</p> - -<div id="i_106" class="figcenter" style="max-width: 29em;"> - <img src="images/i121.jpg" width="1793" height="2589" alt="" /> - <div class="caption">“BLACK FRIDAY” IN WALL STREET.</div></div> - -<p>An event now took place which would have -seemed to justify the implicit belief of an Erie -treasurer in the corruptibility of all mankind. The -unsuspicious President again passed through New -York, and came to breakfast at Mr. Corbin’s house -on the 2d of September. He saw no one but Mr. -Corbin while there, and the same evening at ten -o’clock, departed for Saratoga. Mr. Gould declared -afterward, however, that he was told by Mr. Corbin -that the President, in discussing the financial situation, -had shown himself a convert to the Erie theory -about marketing the crops, and had stopped in the -middle of a conversation in which he had expressed -his views and written a letter to Secretary Boutwell. -In regard to this letter, Secretary Boutwell -testified as follows:</p> - -<p>“I think on the evening of the 4th of September -I received a letter from the President, dated at New -York, as I recollect it; I am not sure where it was -dated. In that letter he expressed an opinion that -it was undesirable to force down the price of gold. -He spoke of the importance to the West of being -able to move their crops. His idea was that if gold -should fall, the West should suffer and the movement -of the crop would be retarded. The impression -made on my mind by the letter was that he had -rather a strong opinion to that effect. Upon the -receipt of the President’s letter, I telegraphed to -Judge Richardson, ‘Send no order to Butterfield as -to sales of gold until you hear from me.’”</p> - -<p>Mr. Gould had therefore succeeded in reversing -the policy of the National Government, but this was -not all. He knew what the government would do -before any officer of the government knew it. Mr. -Gould was at Corbin’s house on the 2d of September, -and it seems certain that he saw Corbin -privately, unknown to the President, within an hour -or two after this letter to Mr. Boutwell was written, -and that it was at this interview, while the President -was still in the house, that Mr. Corbin gave him the -information about the letter, perhaps showed him -the letter itself. It was immediately at this time -that Gould bought $1,500,000 worth of gold for -Corbin.</p> - -<p>No time was lost, and from this day Gould bought -largely of gold. He did everything to give the public -the impression that the government was behind -the “deal.” An article written by Corbin was published<span class="pagenum" id="Page_108">108</span> -as an editorial in the <i>Times</i> and attracted attention, -as the editor, John Bigelow, had just had a -conversation with the President and was supposed to -speak with authority. Notwithstanding the authorship -of the article, it is just to say that the <i>Times</i> -detected the odor of Wall street about it and quarantined -the article before making it public. Its -effectiveness for Gould was much lessened. Gould -wrote to Boutwell with a view of obtaining an -official statement from him, but received a reply -that said little and that diplomatically. Meanwhile -Gould had been buying millions in gold and had -formed a pool that bought millions more. That the -movement was fictitious is shown by the fact that -the impression on prices was comparatively small. -Fisk looked on incredulously. “The country is -against you,” was his criticism of the scheme.</p> - -<p>Down to this moment Jim Fisk had not appeared -in the affair. It was not until after September -10th that Gould appears to have decided that there -was nothing else to be done but to take him into -confidence. Fisk immediately bought seven or -eight millions and the market began to respond -slowly to these enormous purchases.</p> - -<p>“Meanwhile Mr. Gould had placed another million -and a half of gold to the account of Gen. Butterfield -and notified him of the purchase; so Mr. Gould -swears, in spite of Gen. Butterfield’s denial. The date -of this purchase is not fixed. Through Mr. Corbin a -notice was also sent by Gould about the middle -of September to the President’s private secretary,<span class="pagenum" id="Page_109">109</span> -Gen. Porter, informing him that half a million was -placed to his credit. Gen. Porter instantly wrote -to repudiate his purchase, but it does not appear -that Butterfield took any notice of Gould’s transaction -on his account. On the 10th of September the -President had again come to New York, where he -remained his brother-in-law’s guest till the 13th, and -during this visit Mr. Gould appears again to have -seen him, although Mr. Corbin avers that on this -occasion the President intimated his wish to the -servant that this should be the last time Mr. Gould -obtain admission.</p> - -<p>“Things were now so managed that the President -was placed in a position that his honor was seriously -in danger of being compromised, yet so ably was -the matter engineered that he was perfectly unconscious -of the designs of the plotters. He was prevailed -upon to go to a then obscure town in Pennsylvania, -named Little Washington. The thing was so arranged -that his feelings were worked upon to visit -that place for the purpose of seeing an old friend -who resided there. The town was cut off from telegraphic -communications, and the other means of -access were not very convenient. The President -set out on his journey on the morning of the 13th, -and there he was ensconced to remain for a week or -so, about the time the Cabal was fully prepared for -action.</p> - -<p>“Gould then said to Fisk: ‘This matter is all -fixed up. Butterfield is all right. Corbin has got -Butterfield all right and Corbin has got Grant fixed<span class="pagenum" id="Page_110">110</span> -all right, and in my opinion they are all interested -together.’</p> - -<p>“This was patriotism with a vengeance. Just -think of the audacity of it! Gould enters into a -scheme to place the President in a position where -he could not interfere with the plan of getting a -‘corner’ on gold, and then he turns around and accuses -the first magistrate of the republic with being -privy to a plot that was calculated to create a panic -and cause widespread disaster in business circles and -make him an object of universal contempt.”</p> - -<p>Some of the members of the pool got frightened -and sold out, but Gould continued to buy. “I had -to buy,” testified Gould afterward, “or show the -white feather. The other fellows deserted me like -rats.” Gould had the material aid of the Tenth -National Bank, an institution which he owned and -which he used as an adjunct to his speculative operations. -The extent to which he used it in the gold -conspiracy was shown by the fact that it in one day -overcertified Gould’s checks to the amount of -$7,500,000. Garfield called this bank “a manufactory -of certified checks.”</p> - -<p>As Gould bought the bears sold “short” and the -battle became intensely exciting.</p> - -<p>Fisk’s assistance was as valuable as Gould -expected it to be. He took no stock in the crop -theory, but the idea of making the administration a -partner in the diabolical enterprise seems to have -attracted him. “Nothing,” said Garfield in his report -to Congress, “nothing but the scent of corruption<span class="pagenum" id="Page_111">111</span> -could sharpen the appetite of Fisk for the game his -leader (Gould) was pursuing. The compounded -villainy presented by Gould and Corbin was too -tempting a bait.” So Fisk was drawn into the -movement when his aid was most needed. This -corner was a glittering edifice built on a foundation -of deceit and corruption. It could not long stand. -The most that Gould and Fisk could do was to -frighten the “shorts” into covering before Grant -awakened to the realization of how he was being -used and issue orders to sell gold. Wall street was -soon filled with rumors that the administration was -in the deal and the excitement ran high.</p> - -<p>“The malign influence,” says the Congressional -report already quoted, “which Cataline wielded over -the reckless and abandoned youth of Rome finds a -fitting parallel in the power which Fisk held in Wall -street when, followed by the thugs of Erie and the -debauchees of the opera, he swept into the gold-room -and defied both the street and the Treasury.”</p> - -<p>The magnitude of the conspiracy is shown by the -fact that before Black Friday Gould had employed -fifty to sixty brokers to make his purchases, and -$50,000,000 to $60,000,000 of gold had been bought -by William Heath & Co., Woodward, H. K. Enos, -E. K. Willard, and others of the brokers. He required -all this to advance the price of gold from -135½ to 140½.</p> - -<p>Fisk’s entrance into the game was a powerful -help to Gould, for it not only furnished another -purchaser for gold, but directed public attention<span class="pagenum" id="Page_112">112</span> -from himself to Fisk. The ex-peddler loved to bask -in the sun of public notoriety. Gould was timid, -but Fisk had the brazen courage of a courtesan.</p> - -<p>Gould and Fisk now became exceedingly nervous -over the firmness of the President’s policy. -He induced Mr. Corbin to write a letter directly to -the President himself. This letter, written on the -seventeenth, under the influence of Gould’s anxiety, -was instantly sent away by a special messenger of -Fisk’s, who rode twenty-eight miles on horseback from -Pittsburg, and delivered it in person to the President. -He read the letter, and had his suspicions at once -aroused. He said laconically to the messenger: “It -is satisfactory; there is no answer.” He began to -see through the game, and at once desired Mrs. -Grant to write to Mrs. Corbin requesting her -husband to have nothing more to do with the Gould-Fisk -gang.</p> - -<p>The messenger telegraphed “All right” to the -conspirators.</p> - -<p>“We now come to the week which was to witness -the explosion of all this elaborately constructed -mine. On Monday the 20th, gold again rose. -Throughout Tuesday and Wednesday, Fisk continued -to purchase without limit and forced the -price up to 40. At this time, Gould’s firm of Smith, -Gould & Martin, through which the operation was -conducted, had purchased some $50,000,000, and yet -the bears went on selling, although they could only -continue the contest by borrowing Gould’s own -gold. Gould, on the other hand, could no longer<span class="pagenum" id="Page_113">113</span> -sell and clear himself, for the reason that the sale of -$50,000,000 would have broken the market to nothing. -The struggle had become intense. The whole -country was looking on with astonishment at the -battle between the bulls and the bears. All business -was deranged and all values unsettled. There were -indications of a panic in the stock market; and the -bears, in their emergency, were vehemently pressing -the government to intervene. Gould now wrote to -Mr. Boutwell a letter so inconceivably impudent -that it indicates desperation and entire loss of his -ordinary coolness:</p> - -<p>“Sir: There is a panic in Wall street, engineered -by a bear combination. They have withdrawn currency -to such an extent that it is impossible to do -ordinary business. The Erie company requires -$800,000 to disburse. Much of it in Ohio, where an -exciting political contest was going on and where -we have about ten thousand employed, and the -trouble is charged on the administration. Cannot -you consistently increase your line of currency?”</p> - -<p>From a friend, such a letter would have been an -outrage, but from a member of the Tammany ring, -the principal object of detestation to the government, -such a threat or bribe, whichever it may be -called, was incredible. Mr. Gould was, in fact, at -his wits’ end. He dreaded a panic and felt that -it could no longer be avoided.</p> - -<p>The conspirators interpreted the telegram from -their messenger, reading “all right” to mean a -favorable answer to the letter, and they were much<span class="pagenum" id="Page_114">114</span> -elated. But the President, supposing that the messenger -was only a clerk from the post-office, had -said “all right” merely to indicate that he had -received the letter and required his presence no -longer. His suspicions were aroused after the -messenger had left, when he ascertained that he had -brought the letter at post-haste all the way from -New York. That night Mrs. Grant wrote to Mrs. -Corbin a note stating that the President had heard -that Mr. Corbin was engaged in Wall street speculations, -and if it were true he desired that he should -immediately dissociate himself from them. This -letter filled Gould with consternation. He and -Corbin sat in the latter’s house all night reading -and rereading the note and endeavoring to grasp -the meaning between the lines. “If you show that -note,” said Gould, finally, “I am a ruined man.” -Corbin said he must obey orders and leave the -street, but he insisted Gould should first take up the -gold held in Corbin’s name and pay him the profits. -Corbin had already received a check for $25,000. -But Gould had already all the gold he wanted, and -after standing for a while in silence by the door, his -brow black with mystery, he left the house.</p> - -<p>The game was up. One stroke of a woman’s -pen had punctured the dazzling bubble. A word -from the President was sufficient to collapse the -biggest corner on record. How to save himself? -That was the question which, with knit brow and -lips compressed with hidden excitement, Gould debated -as he returned home that night. No thought<span class="pagenum" id="Page_115">115</span> -for others who were deep in the game with himself. -No thought for Fisk, his friend and associate. His -mind labored for himself alone. He soon reached -a conclusion. While there was yet time he would -dump his heavy load of gold on the market and let -others take what he could not carry. His only capital -now was the early information he possessed of -the President’s aroused suspicions; of his change of -purpose. He did not tell even Fisk of Mrs. Grant’s -letter to Mrs. Corbin, but let Fisk continue his purchases -in ignorance of the real situation. He only -remarked to Fisk that Corbin was getting weary and -wanted his profits, or something to that purpose. -Thursday—the day preceding Black Friday—Gould -began his dumping process. “I sold that day,” he -testified afterward, “and only bought enough to -make the street think I was still a bull.”</p> - -<p>Here is Mr. Clews’ story of days immediately -preceding the fatal Friday.</p> - -<p>“On Wednesday, the 22d of September, two -days preceding ‘Black Friday,’ the clique, it is -believed, owned several millions more gold than -there was in the city, outside the vaults of the sub-treasury. -Belden bought about eight millions of -gold on that day, while Smith, Gould, Martin & Co. -were also heavy purchasers. The clique held a caucus -in the office of Wm. Heath & Co. in Broad street -and concluded that it had gold enough to put the -price to 200 if it could carry the gold without lending -and compel the shorts to purchase. But the -idea of finding a market for over thirty millions of<span class="pagenum" id="Page_116">116</span> -gold was also a gigantic problem, and they felt the -risk of being ground between the upper and the -nether millstones of their scheme.</p> - -<p>“On the morning of Thursday another council of -war was held in the office of Belden & Co., on Broadway. -At this meeting, Gould, Fisk, Henry N. Smith -and William Belden were present. The proceedings -of this meeting were kept a profound secret, but one -result of it was that Belden gave his clerk the famous -order to put gold to 144 and keep it there. On that -day Belden purchased about twenty millions of gold, -the price opening at 141½ and closing at 143½.</p> - -<p>“The chiefs of the Cabal had another private -meeting up town that evening. The great question -of closing up the transactions on the following day -was the chief topic of discussion. These operators -held contracts for over $100,000,000 in gold. Gould -said that the ‘short’ interest was $250,000,000. The -total amount of gold in the city did not exceed $25,000,000, -and the difference between this and the -aggregate amount of the contracts of the clique was -the enormous amount that would have to be settled -in the event of a ‘corner.’</p> - -<p>“Fisk proposed that the clique show its hand, -publish the state of affairs, and offer to settle with -the shorts at 150. His plan was rejected by his -brother conspirators.”</p> - -<p>And now opens that remarkable day in September, -1869, known as “Black Friday.” Wall street -has passed through other days of excitement and -calamity, but even the panic days of 1873 and 1884<span class="pagenum" id="Page_117">117</span> -pale before the awful passion and fury of Black -Friday.</p> - -<p>The New York <cite>World</cite> of September 25, 1869, thus -describes the day:</p> - -<p>“The scene during the conflict almost beggars -description and exceeds anything ever before witnessed -in Wall street. It was a tussle of enormous -magnitude, fierce and desperate. It was a day long -to be remembered and not easily forgotten by those -who witnessed it or were caught in the maelstrom -that carried everything before it.”</p> - -<p>The conspirators were early in the street, and -the offices of Smith, Gould & Martin, Fisk & Belden -and William Heath & Co. were the center of enormous -excitement. William Belden, who was Fisk’s -partner, played a conspicuous part in this day’s history. -He was a man cool and daring—the fit companion -of such men as Gould and Fisk. The day, -however, left a stain on his record that could never -be obliterated, and when, in 1888, Belden formed a -co-partnership with a member of the Stock Exchange, -the governing committee of the institution stated -that unless the member severed his partnership with -Belden he must leave the Exchange.</p> - -<p>Gould, Fisk, Belden and their brokers held a -counsel of war and laid out the work of the day. -Heath was to look after this, Willard was to attend -to that, Belden was to direct this and Fisk was to direct -that, while “Gould”—the language of the Congressional -report is now quoted—“Gould, the guilty -plotter of all these criminal proceedings, determined<span class="pagenum" id="Page_118">118</span> -to betray his own associates, and silent and imperturbable, -by nods and whispers directed all.” “I -determined,” said Mr. Gould afterward, “not to -open my mouth that day, and I did not.”</p> - -<p>What a study for a dramatic painter Gould would -have made that day!</p> - -<p>There was undoubtedly some secret understanding -between Fisk and Belden to which Gould was a -party, by which all the orders given that day could -be repudiated if the market went against them. A -ready tool was found in Albert Speyer, who accepted -verbal orders from Belden in the presence of Gould -and Fisk to buy, and who went into the board-room -and did buy immense quantities of gold at the highest -prices. The street was filled with the wildest -rumors. Prices rapidly advanced to 165. The shorts -trembled before the rising tide that seemed about -to sweep over them. Many were frightened into -covering their contracts. Gould continued to sell. -Fisk and Belden continued to buy. The excitement -rose point by point to the wildest pitch. Old operators -lost their heads, men rushed hatless and half -crazy through the streets, their eyes bloodshot, their -faces pale with anxiety, their brains on fire. There -came rumors of contemplated selling of gold by the -Treasury, and the street went mad. Where these -rumors started no one ever knew, but they were the -forerunners of actual fact. James Brown, the Scotch -banker, appeared in the board and began to offer -gold at declining figures. Then the earthquake -started, and the golden edifice built by Gould began<span class="pagenum" id="Page_119">119</span> -to tumble. Soon the Treasury order to sell $4,000,000 -of gold appeared, and then the terrible collapse. -Prices fell from 165 to 133½. The board-room was -the scene of contending furies. Albert Speyer completely -lost control of himself; his hair is said to -have turned white that night after he went home a -ruined man. Wall and Broad streets were filled -with men wild with excitement. Infuriated mobs -surrounded the offices of Fisk & Belden and Smith, -Gould & Martin. Threats of violence were made. -Speyer went about saying: “Some one has threatened -to shoot me. Let him shoot.” The Gold Exchange -Bank was obliged to suspend operations. Its clearances -that day amounted to over $300,000,000 of -gold. Trading was stopped in the Gold Board. Fisk -& Belden suspended and their contracts were repudiated. -The fortunes of hundreds were swept away -in that day’s battle. Several firms were driven to -the wall and announced their failures. The administration -was involved in suspicion which it took -years to remove. The nation was disgraced and its -credit was broken.</p> - -<p>But Gould, “the guilty plotter of all these criminal -proceedings,” went home saved. What he made -or what he lost in that struggle is unknown, but -though he had involved others in ruin and had -betrayed others, he had saved himself from overthrow. -To have gone down in the fight would have -been a display of heroism. To save himself alone -from the wreck was dishonor.</p> - -<p>It is not strange that in his sworn autobiography<span class="pagenum" id="Page_120">120</span> -delivered to the Committee on Labor and Education, -Mr. Gould omitted all mention of Black Friday, but -when as a witness before the Committee on Corners -he was asked about the Black Friday panic, he calmly -said that it was the “result of overtrading,” and that -its real cause was “the fluctuations in the price of -gold caused by the war!” It is a singular coincidence -that exactly twenty-two years after Black Friday, -on the very anniversary of the day in 1891, Gould -caused another big flurry in Wall street. After several -years of depression, a “boom” in stocks was in -progress, when the sudden announcement was made -that the Missouri Pacific, of which Gould was president, -would pass its dividend. The announcement -caused a revolution in prices and the “boom” completely -collapsed.</p> - -<p>Mr. Clews tells a graphic story of what he saw:</p> - -<p>“On the morning of the fatal day, Belden and -William Heath had an early breakfast together at -the Fifth Avenue Hotel, and repaired immediately -to their offices. Belden announced that gold was -going to 200. ‘This will be the last day of the -Gold Room,’ he added. Moved by Belden’s threat, -a large number rushed to cover. In the language -of Henry N. Smith, ‘They came on with a rush to -settle.’ He was settling in the office of Smith, -Gould & Martin, at 150 to 145, while Albert Speyer, -acting as broker for Fisk and Gould, was bidding -up to 160 for a million at a time. It was only when -the price came down to 133 that Speyer realized the<span class="pagenum" id="Page_121">121</span> -humorous absurdity of his position. He had then -bought 26 millions since morning at 160.</p> - -<p>“A voracious demand for margins about midday -brought the work to a crisis. The scene at the office -of Heath was indescribable when Belden went there -to see Gould and his confederates, to find out what -was to be done next with the frenzied purchasers. -An eye-witness thus describes the scene at Heath’s -office: ‘I went outside while Belden went in. I -walked up and down the alley-way waiting for him -to come out. Deputy sheriffs, or men appearing to -be such, began to arrive and to mount guard at -Heath’s office to keep out visitors. After waiting a -prodigious long time, as it seemed to me, Jay Gould -came creeping out of the back door, and looking -round sharply to see if he was watched, slunk off -through a private rear passage behind the buildings. -Presently came Fisk, steaming hot and shouting. -He took the wrong direction at first, nearly ran into -Broad street, but soon discovered his error and followed -Gould through the rear passage. Then came -Belden, with hair disordered and red eyes, as if he -had been crying. He called: ‘Which way have they -gone?’ and upon my pointing the direction, he ran -after them. The rear passage led into Wall street. -At its exit the conspirators jumped into a carriage -and fled the street.”</p> - -<p>They did not fly the street, however, but went to -the Broad street office of Smith, Gould & Martin, -where the crowd assembled, evidently with riotous -intent, apparently bent upon an application to Judge<span class="pagenum" id="Page_122">122</span> -Lynch for justice; and had any of the gentlemen -appeared outside the confines of the front wall, the -chances were that the lamp-post near by would have -very soon been decorated with a breathless body. -To insure their safety inside, however, a small police -force kept guard outside, which made the barricade -complete. These gentlemen remained under this -shelter until the small hours of the morning, busily -endeavoring to find out where they stood in the result -of the gold deal; and the more they pondered -over it, the greater grew the doubt in their minds -whether they were standing on their heads or their -heels.”</p> - -<p>The story told by Mr. Adams is also worthy of -repetition as a graphic description of the terrors of -the day. Beginning with the morning before, he -says:</p> - -<p>“It was the morning of Thursday, the 3d; Gould -and Fisk went to Broad street together, but as usual -Gould was silent and secret, while Fisk was noisy -and communicative. There was now a complete -separation in their movements. Gould acted entirely -through his own firm of Smith, Gould & Martin, -while Fisk operated principally through his old partner, -Belden. One of Smith’s principal brokers testifies: -‘Fisk never could do business with Smith, Martin -& Gould very comfortably. They would not do -business for him. It was a very uncertain thing, of -course, where Fisk might be. He is an erratic sort -of genius. I don’t think anybody would want to -follow him very long. I am satisfied that Smith,<span class="pagenum" id="Page_123">123</span> -Gould & Martin controlled their own gold and were -ready to do as they pleased with it without consulting -Fisk. I do not think there was any general -agreement. None of us who knew him cared to -do business with him. I would not have taken an -order from him nor had anything to do with him.’ -Belden was considered a very low fellow. ‘I never -had anything to do with him or his party,’ said one -broker employed by Gould. ‘They were men I had -a perfect detestation of; they were no company for -me. I should not have spoken to them at all under -ordinary circumstances.’ Another says, ‘Belden is -a man in whom I never had any confidence in any -way. For months before that I would not have taken -him for a gold transaction.’</p> - -<p>“And yet Belden bought millions upon millions -of gold. He himself says he had bought twenty -millions by this Thursday evening, and this without -capital or credit except that of his brokers. Meanwhile -Gould, on reaching the city, had at once given -secret orders to sell. From the moment he left -Corbin he had but one idea, which was to get rid of -his gold as quietly as possible. ‘I purchased merely -enough to make believe I was a bull,’ says Gould. -This double process continued all that afternoon. -Fisk’s wild purchases carried the price up to 144, -and the panic in the street became more and more -serious as the bears realized the extremity of their -danger. No one can tell how much gold which did -not exist they had contracted to deliver or pay the -difference in price. One of the clique brokers swears<span class="pagenum" id="Page_124">124</span> -that on this Thursday evening the street had sold -the clique one hundred and eighteen millions of -gold, and every rise of one per cent, on this sum -implied a loss of more than one million dollars to -the bears. Naturally the terror was extreme, for -half Broad street and thousands of speculators would -have been ruined if compelled to settle gold at 150 -which they had sold at 140. It need scarcely be -said that by this time nothing more was heard in -regard to philanthropic theories of benefit to the -western farmer.</p> - -<p>“Mr. Gould’s feelings can easily be imagined. -He knew that Fisk’s reckless management would -bring the government upon his shoulders, and he -knew that unless he could sell his gold before the -order came from Washington he would be a ruined -man. He knew, too, that Fisk’s contracts must inevitably -be repudiated. This Thursday evening he -sat at his desk in the Erie offices at the opera house, -while Fisk and Fisk’s brokers chattered about him. -‘I was transacting my railroad business. I had my -own views about the market and my own fish to fry. -I was all alone, so to speak, in what I did, and I did -not let any of those people know exactly how I -stood. I got no ideas from anything that was said -there. I had been selling gold from 35 up all the -time, and I did not know till the next morning that -there would probably come an order about twelve -o’clock to sell gold.’ He had not told Fisk a word -in regard to Corbin’s retreat nor his own orders to -sell.</p> - -<p><span class="pagenum" id="Page_125">125</span></p> - -<p>“When the next day came, Gould and Fisk went -together to Broad street and took possession of the -private back office of a principal broker, ‘without -asking the privilege of doing so,’ as the broker -observes in his evidence. The first news brought to -Gould was a disaster. The government had sent -three men from Washington to examine the bank -which Gould owned, and the bank sent word to Mr. -Gould that it feared to certify for him as usual, and -was itself in danger of a panic, caused by the presence -of officers, which created distrust of the bank. -It barely managed to save itself. Gould took the -information silently, and his firm redoubled sales of -gold. His partner, Smith, gave the orders to one -broker after another—‘Sell ten millions!’ ‘The order -was given as quick as a flash, and away he went,’ -says one of these men. ‘I sold only eight millions.’ -‘Sell, sell, sell! do nothing but sell!—only don’t sell -to Fisk’s brokers,’ were the orders which Smith himself -acknowledges. In the gold-room Fisk’s brokers -were shouting their rising bids, and the packed -crowd grew frantic with rage and terror as each successive -rise showed their increasing losses. The -wide streets outside were thronged with excited -people; the telegraph offices were overwhelmed with -messages ordering sales or purchases of gold or -stocks; and the whole nation was watching eagerly to -see what the result of this convulsion was to be. -All trade was stopped, and even the President felt -that it was time to raise his hand. No one who has -not seen the New York gold-room can understand<span class="pagenum" id="Page_126">126</span> -the spectacle it presented; now a perfect pandemonium, -now silent as the grave. Fisk, in his dark -back office across the street, with his coat off, swaggered -up and down, ‘a big cane in his hand,’ and -called himself the Napoleon of Wall street. He -really believed that he directed the movement, and -while the street outside imagined that he and Gould -were one family, and that his purchases were made -for the clique, Gould was silently flinging away his -gold at any price he could get for it.</p> - -<p>“Whether Fisk really expected to carry out his -contract, and force the bears to settle or not, is -doubtful, but the evidence seems to show that he -was in earnest and felt sure of success. His orders -were unlimited. ‘Put it up to 150,’ was one which he -sent to the gold-room. Gold rose to 150. At length -the bid was made—‘160 for any part of five millions,’—‘162 -for five millions.’ No answer was made and -the offer was repeated—‘162 for any part of five -millions.’ A voice replied, ‘Sold one million at 62,’ -The bubble suddenly burst, and within fifteen -minutes, amid an excitement without parallel even -in the wildest excitements of the war, the clique -workers were literally swept away and left struggling -by themselves, bidding still 160 for gold in millions -which no one would any longer take their word for, -while the premium sank rapidly to 135. A moment -later the telegraph brought the government order -from Washington to sell, and the result was no -longer possible to dispute. Mr. Fisk had gone too<span class="pagenum" id="Page_127">127</span> -far, while Mr. Gould had secretly weakened the -ground under his feet.</p> - -<p>“Gould, however, was saved. His fifty millions -were sold; and although no one yet knows what his -gains or losses may have been, his firm was now -able to meet its contracts and protect its brokers. -Fisk was in a very different situation. So soon as it -became evident that his brokers would be unable to -carry out their contracts, every one who had sold gold -to them turned in wrath to Fisk’s office. Fortunately -for him it was protected by armed men whom he -had brought with him from his castle of Erie; but -nevertheless the excitement was so great that both -Mr. Fisk and Mr. Gould thought it best to retire as -rapidly as possible to a back entrance leading into -another street, and seek the protection of the -opera house. There nothing but an army could disturb -them; no civil mandate was likely to be served -without their permission within these walls, and few -men would care to face Fisk’s ruffians in order to -force an entrance.</p> - -<p>“The subsequent winding up of this famous conspiracy -may be stated in few words. But no account could -possibly be complete which failed to reproduce in -full the story of Mr. Fisk’s last interview with Mr. -Corbin, as told by Fisk himself. ‘I went down to -the neighborhood of Wall street Friday morning, -and the history of that morning you know. When I -got back to our office, you can imagine I was in no -enviable state of mind, and the moment I got up -street that afternoon I started right around to old<span class="pagenum" id="Page_128">128</span> -Corbin’s to rake him out. I went into the room and -sent word that Mr. Fisk wanted to see him in the -dining-room. I was too mad to say anything civil, -and when he came into the room, said I, ‘You -damned old scoundrel, do you know what you have -done here, you and your people?’ He began to -wring his hands, and ‘Oh!’ he says, ‘this is a horrible -position. Are you ruined?’ I said I didn’t know -whether I was or not; and I asked him again if he -knew what had happened? He had been crying, -and said he had just heard; that he had been sure -everything was all right, but that something had occurred -entirely different from what he had anticipated. -Said I, ‘That don’t amount to anything; we know -that gold ought not to be at 31, and that it would not -be but for such performances as you have had this -last week; you know damned well it would not if -you had not failed.’ I knew that somebody had -run a saw right into us, and said I, ‘This whole -damned thing has turned out just as I told you it -would.’ I considered the whole party a pack of -cowards, and I expected that when we came to clear -our hands they would sock it right into us. I said -to him, ‘I don’t know whether you have lied or not, -and I don’t know what ought to be done with you.’ -He was on the other side of the table, weeping and -wailing, and I was gnashing my teeth. ‘Now,’ he -says, ‘you must quiet yourself.’ I told him I didn’t -want to be quiet. I had no desire to ever be quiet -again, and probably never should be quiet again. -He says, ‘But, my dear sir, you will lose your reason.’<span class="pagenum" id="Page_129">129</span> -Says I, ‘Speyers’ (a broker employed by him that -day) ‘has already lost his reason; reason has gone -out of everybody but me.’ I continued, ‘Now what -are you going to do? You have got us into this -thing, and what are you going to do to get out of it?’ -He says, ‘I don’t know. I will go and get my wife.’ -I said, ‘Get her down here.’ The soft talk was all -over. He went up stairs and they returned, tottling -into the room, looking older than Stephen Hopkins. -His wife and he both looked like death. He was -tottling just like that. (Illustrated by a trembling -movement of the body.) ‘I have never seen him -from that day to this.’</p> - -<p>“This is sworn evidence before a committee of -Congress, and its humor is perhaps the more conspicuous -because there is every reason to believe -that there is not a word of truth in the story from -beginning to end. No such interview ever occurred, -except in the unconfined apartments of Mr. Fisk’s -imagination. His own previous statements make it -certain that he was not at Corbin’s house at all that -day, and that Corbin did come to the Erie offices -that evening and again the next morning. Corbin -himself denies the truth of the account without -limitation; and adds that when he entered the Erie -offices the next morning, Fisk was there. ‘I asked -him how Mr. Gould felt after the great calamity of -the day before.’ He remarked, ‘Oh, he has no courage -at all. He has sunk right down. There is -nothing left of him but a heap of clothes and a pair -of eyes.’ The internal evidence of truth in this<span class="pagenum" id="Page_130">130</span> -anecdote would support Mr. Corbin against the -world.</p> - -<p>“In regard to Mr. Gould, Fisk’s graphic description -was probably again inaccurate. Undoubtedly -the noise and scandal of the moment were extremely -unpleasant to this silent and impenetrable intriguer. -The city was in a ferment, and the whole -country pointing at him with wrath. The machinery -of the gold exchange had broken down, and he -alone could extricate the business community from -the pressing danger of a general panic. He had -saved himself, it is true; but in a manner which -could not have been to his taste. Yet his course -from this point must have been almost self-evident -to his mind, and there is no reason to suppose that -he hesitated.”</p> - -<p>“His own contracts were all fulfilled. Fisk’s -contracts all except one, in respect to which the -broker was able to compel a settlement, were repudiated. -Gould probably suggested to Fisk that -it was better to let Belden fail, and to settle a handsome -fortune on him than to sacrifice something -more than $5,000,000 in sustaining him. Fisk, therefore, -threw Belden over, and swore that he had -acted only under Belden’s order. One of the first -acts of the Erie gentlemen after the crisis was to -summon their lawyers and set in action their judicial -powers. The object was to prevent the panic-stricken -brokers from using legal process to force -settlements and to render the entanglement inextricable. -Messrs. Field & Shearman came and<span class="pagenum" id="Page_131">131</span> -instantly prepared a considerable number of injunctions, -which were sent to their judges, signed at -once, and immediately served. Gould then was able -to dictate the terms of settlement, and after a week -of complete paralysis, Broad street began at last to -show signs of returning life.</p> - -<p>“The fate of the conspirators was not severe. -Mr. Corbin went to Washington, where he was -snubbed by the President, and at once disappeared -from public view, only coming to light again before -the congressional committee. General Butterfield, -whose share in the transaction is least understood, -was permitted to resign his office without any investigation. -Speculation for the next six months was -at an end. Every person involved in the affair -seemed to have lost money, and dozens of brokers -were swept from the street. But Mr. Jay Gould and -Mr. James Fisk, Jr., continued to reign over Erie, -and no one can say that their power or their credit -was sensibly diminished by a shock which, for the -time, prostrated all the interests of the country.”</p> - -<hr /> - -<div id="toclink_132" class="chapter"> -<p><span class="pagenum" id="Page_132">132</span></p> - -<h2 class="nobreak" id="CHAPTER_X">CHAPTER X.<br /> - -<span class="subhead">GOULD AND THE WESTERN RAILWAY SYSTEMS.</span></h2> -</div> - -<p class="drop-cap al"><span class="smcap1">After</span> Mr. Gould was ousted from Erie, he -entered into that career of acquisition which -made him the master of several of the most important -railroads in the United States, of the Yale system -of telegraph and of the chief line of transportation -in New York city. In nearly all his railroad -operations he repeated, to a greater or less extent, -his career in Erie. His scheme was to buy up cheap -and bankrupt roads, reorganize them, issue new stock -and bonds, unload on some other road, or else, by -the payment of dividends, get the public interested -in the property and sell at big profits. Or he would -reverse the operation and take a great property and -squeeze it like a lemon. His career in Union Pacific -comes naturally first in order. For ten years he was -master of this great system which, with the Central -Pacific, constitutes the first and most important of -the lines leading to the Pacific coast. His record in -this road has been a matter of official investigation, -and this part of Mr. Gould’s history, as well as that -of the Erie and Black Friday periods, is based on -sworn testimony. But first, it is but fair that Mr. -Gould’s own account of his connection with Union -Pacific, as stated in his testimony before the Senate<span class="pagenum" id="Page_133">133</span> -Committee on Labor and Education, should be given. -Having omitted all mention of Erie Mr. Gould -said:</p> - -<div id="i_132" class="figcenter" style="max-width: 29em;"> - <img src="images/i149.jpg" width="1818" height="2601" alt="" /> - <div class="caption">GOULD BEFORE THE CONGRESSIONAL COMMITTEE.</div></div> - -<p>“I then went into the Union Pacific road. I met -Horace Clark and Augustus Schell out West, and -they gave me so good an account of the road that I -concluded I would buy in it. I telegraphed to New -York an order to buy at a certain price. When Mr. -Clark got home he was taken ill, and as soon as his -brokers learned that his illness was to be fatal, they -sold out his stock. That broke the market and filled -orders which I had sent at a price lower than I ever -expected. When I got home I found myself the -owner of a large amount of this property, and at -once inquired into its condition. I learned that it -was saddled with a large floating debt, and that -there were ten million dollars of bonds coming due -within a month. It was in rather a blue condition. -The directors were consulting who should be the -receiver. I made up my mind that I would carry it -through, and I told them that if they would furnish -half of the money to pay the debt, I would furnish the -other half. The stock went down to 15. It was a -large loss, but still I kept right on buying, so when -the turn came there did not seem to be any top to it. -It went up to 75, and I immediately went to work to -bring the road up. I went out over it, started coal -mines, and to the surprise of everybody it soon began -to pay dividends and has never passed a dividend -since.</p> - -<p>“Well,” continued Mr. Gould, “when this road began<span class="pagenum" id="Page_134">134</span> -to be a financial success and developed other -ways there arose quite a clamor, and it was said to -be Jay Gould’s road, as though it were a dangerous -thing to have one man control a road. I thought -that it was better to bow to public opinion, so I took -the opportunity when I could to place the stock in -the hands of investors. In the course of a very few -months, instead of owning control of the road I was -entirely out of it, and the stock was 20 per cent. -higher than I had sold it for. Instead of being -thirty or forty stockholders, there were between six -and seven thousand, representing the savings of -widows and orphans. There were also a great many -lady stockholders. That was about four years ago, -after Congress enacted very harsh legislation, after -they had broken the bargain they had made to get -the road through in its early stages.”</p> - -<p>“You refer to the Thurman act?” asked the chairman.</p> - -<p>“Yes, and that closed my connection with the -Union Pacific road.”</p> - -<p>This is a very beautiful picture and it makes out -Mr. Gould to be a most public-spirited and generous -man—one ready to sacrifice his own interests in -obedience to the demand of public opinion. But, -having looked on this picture, look upon that -drawn by the Pacific Railroad Commission, appointed -by President Cleveland in 1887, and composed -of ex-Gov. Pattison, of Pennsylvania; E. Ellery -Anderson, of New York, and David Littler, of Illinois. -The commission made two reports, agreeing<span class="pagenum" id="Page_135">135</span> -substantially, only that of ex-Gov. Pattison was more -severe in its conclusions.</p> - -<p>In the majority report, by Messrs. Anderson and -Littler, the purchase of a controlling interest by Jay -Gould in 1873, the subsequent increase in the capital -stock to 200,000 shares, the inauguration of the -policy of constructing branch lines in 1877 and the -commencement of the action by the United States -against the directors of the Union Pacific for misappropriating -the assets of the company were detailed -and the report went on to say: “It appears from the -minutes of the company that while this litigation -was pending certain proceedings were taken by the -directors, whereby by their own acts and votes they -undertook to release themselves from any obligations -or liabilities to the company.” The Kansas -Pacific’s financial operations from 1864 to 1880 were -also taken up and the circumstances leading up to -its consolidation in the Union Pacific system were -detailed at great length. The acquisition by Jay -Gould in 1877, at nominal figures, of several millions -of securities of the Kansas Pacific was spoken of, -and the reorganization of that company under the -control of Gould was detailed and the methods -severely condemned. The effect of the consolidation -was to increase the stock of the Union Pacific -from $38,000,000 to $50,000,000, and the bonded indebtedness -from $88,000,000 to $126,000,000, and the -other indebtedness from $4,000,000 to nearly $10,000,000. -It was declared that “the three years following -the consolidation were years of great business<span class="pagenum" id="Page_136">136</span> -activity, and the receipts of the Union Pacific -for 1880, 1881, 1882 and 1883 were largely increased,” -but “in the face of a very large and apparently -profitable business” the company found itself early in -1884 on the verge of bankruptcy.” Competition, the -burden of its fixed charges, the extravagant sums -paid for branch railroads of little or no earning -power bought by Mr. Gould, and the “lavish and -reckless distribution of the assets of the company in -dividends, all combined to produce this result.” -After stating that Gould’s connection with the road -ceased in 1883, the report says: “It is with a sense -of great relief that the commission turns from the -history of this company from 1873 to 1883 [the period -of Gould’s control—Ed.] to the conservative, -energetic and intelligent management that has characterized -the management from the opening of 1884 -to the present time.”</p> - -<p>Ex-Gov. Pattison, in his report, said:</p> - -<p>“The Union Pacific company has received $176,294,793.53 -in surplus earnings and land sales during -eighteen years, and if its stock had been fully paid, -as Congress required that it should be and as its officers -certified under oath that it was, nearly all of -that money would be applicable to-day to the payment -of the government debt. The company has -paid out $28,650,770 in dividends, and $82,742,850 in -interest on bonds, nearly all of which were distributed -to shareholders without consideration. It has -sunk over $10,000,000 in Denver, South Park and -Pacific; it paid out $10,000,000 to Jay Gould and his<span class="pagenum" id="Page_137">137</span> -associates for branch lines and other investments -which were worthless, and which were unloaded -upon the Union Pacific because of the faithlessness -of the management of the company. The gross -mismanagement of the Union Pacific and the other -Pacific railroads has injured the credit of foreign -investors to such an extent that hundreds of millions -of dollars, which otherwise would have been sent -here for investment and aided in the development -of the country, have been locked up abroad.”</p> - -<p>Every line of this indictment is directed at -Gould. Yet Charles Francis Adams, the author of -“A Chapter in Erie,” and who became president -of the Union Pacific about the time Gould retired, -told the commission that he believed from careful -scrutiny that Mr. Gould had always been more than -fair to the company. But the commission, with all -the facts before it, rejected his view of the case.</p> - -<p>When Mr. Gould secured possession of the Union -Pacific, Sidney Dillon was president of it, and they -with other large stockholders agreed upon a plan to -fund the floating debt in bonds, of which Mr. Gould -took $1,000,000. Mr. Gould remained in practical -control of the property until about 1880, when public -opinion clamored for a change, and as Mr. Gould -said to one of the numerous investigating committees -before which he was called upon during his busy -life to testify: “I bowed to public opinion. I let -outside parties in and soon, instead of thirty or forty -stockholders, there were 6,000 or 7,000.” Mr. Charles -Francis Adams succeeded Sidney Dillon as president,<span class="pagenum" id="Page_138">138</span> -and in a short time an astonished public beheld -the spectacle of the author of the scathing “Chapter -of Erie” standing sponsor for the man he had denounced. -Mr. Gould managed to persuade Mr. -Adams to view the future of Union Pacific through -his (Gould’s) eyes, and in consequence Mr. Adams -unconsciously assisted Mr. Gould in disposing of -large blocks of the stock to good advantage. In -1891 Mr. Gould again got control of the Union -Pacific road, owing to peculiar Wall street conditions, -and he calmly turned Mr. Adams out of the -presidency and put Sidney Dillon back there.</p> - -<p>“In 1876 Mr. Gould began buying Kansas Pacific -stock because it was cheap. At that time stock speculators -did not regard the stock as being worth anything. -Mr. Gould, however, was looking away ahead, -and he bought largely of Denver Pacific securities -and stock and bonds of the St. Joe and Western, the -Kansas Central, and Central Branch roads. All of -these securities he got at a very low price, and he -realized an enormous profit when they were all turned -in under the famous Union Pacific consolidation -scheme in 1880. For his Central Branch stock alone -he received $239 per share. Mr. Gould was one of -the first to suggest the consolidation of the Kansas -Pacific and its subsidiary roads with the Union Pacific. -He employed Solon Humphreys and Gen. Dodge to -go West, look over the situation, and make a report -on the practicability of the consolidation.</p> - -<p>In 1879 a consolidated mortgage was issued by -the Kansas Pacific to wipe out the innumerable securities<span class="pagenum" id="Page_139">139</span> -bearing different rates of interest which -were then burdening the road. Jay Gould and Russel -Sage were then directors of both the Union and -the Kansas Pacific roads, and they were made trustees -of this mortgage. Among the assets covered by -this mortgage were 30,000 shares of the Denver Pacific -railroad, then of little value, but which, under -the plan of consolidation which Gould was then -maturing, would become of great value. Sidney -Dillon, who was associated with Gould and Sage in -all three roads, asked them to release these stocks -from the lien of the mortgage. Gould and Sage sat -down at the same desk at which Dillon had written -this modest request, and wrote suggesting that an -action should be brought against them in the courts -for the release of the stock. The action was immediately -brought before Judge Donohue, to which -Gould and Sage made no defense. Dillon testified -that the stock was worth only $200,000 or $300,000. -The order was given, the stock released, and the day -after the consolidation was effected which made the -stock worth its face value, or $3,000,000.</p> - -<p>Stoop & Rens, of Amsterdam, claiming to be -holders of the bonds, brought the charge against -Mr. Gould and Mr. Sage that they had, without consulting -with the other bondholders, appropriated to -themselves the trust asset of $3,000,000.</p> - -<p>This revelation was made October 17, 1877, -and an effort was made to secure the indictment -of Messrs. Sage and Gould. It was a matter -which at once attracted the widest interest. District<span class="pagenum" id="Page_140">140</span> -Attorney Martine was asked to send the complaints -before the Grand Jury, but pending any action on -his part, Mr. Gould started on a trip abroad on his -yacht Atalanta. Then followed probably the longest -rest and only complete rest Jay Gould ever enjoyed -from the time he took up and pushed through the -abandoned survey of Ulster county in 1852.</p> - -<p>He went first to Gibraltar, then to Marseilles, -cruised along the Mediterranean, going to Egypt -and Italy. While he was absent the legal war -against him at home continued. His enemies in -the Kansas Pacific still clamored for his indictment; -the commissioners appointed by President Cleveland -to investigate the affairs of the Pacific railroads -made a thundering report against the management -of those corporations, showing that they had received -in aid from the government the sum of -$447,000,000. Congressman Anderson offered a -resolution in the House of Representatives recommending -that suit be begun against Mr. Gould and -others to enforce the Thurman act.</p> - -<p>In March, 1888, the Grand Jury failed to indict, -and on that very day Mr. Gould was complacently -strolling about the streets of Algiers. Three weeks -later Mr. Gould landed from his yacht at Jacksonville, -Fla., and in a very short time he was at his -desk looking after his great financial interests and -manipulating the stock market.</p> - -<p>On his return he attacked his prosecutors with a -virulence which he had never displayed before, and -filled the columns of the newspapers with interviews.<span class="pagenum" id="Page_141">141</span> -In one of these he declared that the attack upon him -was the result of a conspiracy and blackmail, and -that the powers behind the criminal proceedings -were “a newspaper” (meaning the <i>Herald</i>), “a cable -company” (referring to the Mackey-Bennet Company), -“and a woman.” The latter was understood -to be the wife of an officer of one of Mr. Gould’s -railroads who had brought suit for divorce. This -bringing of a woman into the case created a great -sensation. A few days later Gould made a bitter -personal attack on James Gordon Bennet, of the -<i>Herald</i>, calling in question his personal and social -character, and reciting incidents unfit for publication. -This was the first time in his life that Gould -appeared to be thoroughly “rattled;” the first time -that he let down the curtain of mystery with which -he had so long covered himself, and the first time -that he broke that silence which was his best -weapon.</p> - -<p>This is a good place to quote from Gould’s testimony -before the Pacific Railroad Commission, as it -gives an insight into his theory of railroad operations.</p> - -<p>“I consider,” he said, “the past a good thing to -judge a road by, but the future more. I have been -all my life dealing in railroads; that is, since before -I came of age. I always bought on the future; -that’s how I made my money. The bonds on the -first road I bought were down to ten cents. I built -up the road and sold them for $125. That’s the reason -I went into the Kansas Pacific and the Union<span class="pagenum" id="Page_142">142</span> -Pacific. But I saw the Kansas Pacific was going to -develop faster than the Union Pacific.”</p> - -<p>Mr. Gould’s railroad operations were entirely too -numerous to be followed in all their details, especially -as enough has already been given to indicate -the character of his enterprises. But no life of Mr. -Gould would be complete without an account of his -connection with Wabash. On this road, however, -he simply repeated, though to a less degree, his -tactics in Erie, and the result is a corporation almost -hopelessly burdened with enormous obligations.</p> - -<p>In the <cite>North American Review</cite> of February, 1888, -will be found a full history of this unfortunate road. -The writer says that “Mr. Gould remains the leading -figure in the chapter of Wabash as he was of Erie.” -There is, he says, a “relative disappearance of the -special forms of judicial usurpation and misconduct -which lent such a lurid aspect to Mr. Adams’ story, -and in their place will be noted one sweeping judicial -act followed by two or three supplementary acts -which accomplished the designs of the actors with -complete effectiveness.” Gould gained control of -the road in 1879 and became president in 1881. The -writer of the <cite>Review</cite> article sums up the history of -Wabash as follows:</p> - -<p>“The Wabash system arose from the absorption -and consolidation of sixty-eight separate original -corporations; when thus consolidated the system -owned and controlled in 1883 about 4,814 miles of -railroad in the six states of Ohio, Michigan, Indiana,<span class="pagenum" id="Page_143">143</span> -Illinois, Missouri and Iowa; its capital stock was increased -between 1877 and 1883 from $40,000,000 to -$50,174,700; its funded or mortgaged debt was increased -during the same period from $20,311,570.60 -to $76,394,075; three quarterly ‘dividends’ were paid -on the entire preferred stock in 1881—the year after -the issue of the general mortgage in 1880—amounting -to $1,036,529; within two years and a half after -these ‘dividends’ the company made default on the -interest of all its mortgaged debt; in May, 1884, the -entire property was, on the application of the debtor -company alone, secretly placed in the hands of -Humphreys and Tutt, two of its former directors and -officers, men without any special qualifications for -railroad management, and who had been part of the -directorate which had brought the system to bankruptcy; -immediately after the appointment of Humphreys -and Tutt, the Circuit Court of the eastern -district of Missouri directed the issue of $2,300,000 -of receiver’s obligations to ‘protect’ the indorsements -of Wabash notes by Gould, Dillon, Sage and Humphreys; -the same court, six days later, directed the -further issue of $2,000,000 of receivers’ certificates—made -a first lien on all the Wabash property—to pay -so-called Wabash indebtedness, which by the terms -of its lease to the Iron Mountain, which had been, -in turn, leased to the Missouri Pacific, was the indebtedness -of the Missouri Pacific; as the result of -two years and a half of this receivership, there was -paid out of the receivers’ earnings, on account of -liabilities incurred prior to the receivership, $3,260,519.23,<span class="pagenum" id="Page_144">144</span> -leaving $500,000 still due; as the grand result -of the receivership of Humphreys and Tutt, interest -has accrued to the amount of $4,390,000, all due and -unpaid, and of receivers’ obligations, $3,200,000, a -total during two years and a half of $7,590,000, with -$290,000 of cash in hand. The property being sold -to a purchasing committee, of which the chairman, -Joy, was a former Wabash director, and another -member, Ashley, was the secretary of the receivers, -a demand was made of the prior mortgage bondholders -to fund into new Wabash bonds their past -due interest and to reduce the interest on their bonds -for the future from 6 and 7 per cent. to 5 per cent. -Upon application of prior mortgage bondholders -the United States Circuit Court at Chicago removed -Humphreys and Tutt for misconduct as receivers -and appointed a new and separate receiver for the -Wabash lines east of the Mississippi river.”</p> - -<p>This removal was upon order of Judge Gresham, -who has made such a high reputation as a judge -who can be depended upon not to be easily influenced -in favor of corporations. This order was called -at the time “one of the bravest acts in the history of -justice.” On rendering decision he spoke in terms -of great severity of the managers and the Gould -receivers, and appointed in place of the latter Judge -Cooley, who was afterward made railroad commissioner -by President Cleveland. In commenting on -this decision, Gould defended himself by attacking -Gresham, who he declared was suffering from a severe -attack of “the presidential fever.”</p> - -<p><span class="pagenum" id="Page_145">145</span></p> - -<p>The Gould purchase of the Missouri Pacific railway -has a refreshing novelty in it on account of the -manner in which it was bought. The road was -owned in 1880 by Commodore Garrison, who was -not friendly to Mr. Gould. The latter sent Russell -Sage to find out how much the commodore would -take for his interest in the Missouri Pacific. The -commodore said that $2,000,000 would be about right. -Sage offered $1,500,000 and Garrison shook his head -brusquely. The next day Sage returned and offered -to close the bargain at $2,000,000. “No,” said the -commodore, “the price has advanced to $2,800,000.”</p> - -<p>“Pooh, pooh!” said Sage, and he went back and -reported to Mr. Gould. The next day Gould went himself -and told Garrison that he would take his stock -at $2,800,000. The commodore replied that the stock -had advanced in price to $3,800,000, and it would -continue to go up $1,000,000 a day. Gould closed -the bargain on the spot, giving Garrison his check -for $3,800,000. The Missouri Pacific stock subsequently -became very much depressed in the stock -market, and a great many weak stockholders were -obliged to let go. Gould was always ready to buy. -After a while he consolidated the Missouri Pacific -with the Iron Mountain and the International and -Great Northern, and Missouri Pacific stock went up -rapidly. The Iron Mountain was a first-class -money-earning road. This consolidation gave Mr. -Gould a southwestern railroad system of more than -5,000 miles, which he subsequently extended largely.</p> - -<p>Gould’s testimony in regard to this portion of<span class="pagenum" id="Page_146">146</span> -his career, before the Senate committee, was as -follows:</p> - -<p>“The next great enterprise, if I may call it great, -that I engaged in was the Missouri Pacific. I -bought it one day of Commodore Garrison, or rather -the control of it. I had a very short negotiation -with him; he gave me his price, just as we are talking -here, and I said: ‘All right; I will take it,’ and -I gave him a check for it that day. At that time I -did not care about the money made; it was a mere -plaything to see what I could do. I had passed the -point where I cared about the mere making of -money. It was more to show that I could make a -combination and make it a success. I took this -road and began developing it, bringing in other -lines which should be tributary to it. I developed -new parts of the country—opened up coal mines, -etc., and continued until, I think, we have now 10,000 -miles of road.</p> - -<p>“When I took the property it was earning $70,000 -a week. I have just got the gross earnings for -the last month, and they amount to $5,100,000, and -we have accomplished that result by developing the -country; and while we have been doing this we have -made the country rich, developing coal mines and -cattle-raising, as well as the production of cotton. -We have created this earning power by developing -the system. All this 10,000 miles is fully built. The -roads pass through the states of Ohio, Illinois, Michigan, -Iowa, Missouri, Kansas, Nebraska, Arkansas,<span class="pagenum" id="Page_147">147</span> -Texas, Louisiana and the Indian Territory, and we -go into Mexico.”</p> - -<p>“Are there other railroad enterprises that you -are connected with?”</p> - -<p>“I am director in various roads, but I put my -whole strength into this system. I don’t like to -scatter around.”</p> - -<p>“What you do you do well, or try to?”</p> - -<p>“I certainly try to do all things well.”</p> - -<p>“What other business enterprises of the country -have you now or formerly had connection with?”</p> - -<p>“I am a director in the Chicago and Northwestern -road, Chicago and Rock Island, Delaware, -Lackawanna and Western, New York and New -England and a good many other small roads.”</p> - -<p>Mr. Gould’s Southwestern system, of which he -speaks in terms so glowing, was composed of the -Missouri Pacific, that was the main stem, and grafted -onto it was the Wabash, of which an account has -already been given; the Missouri, Kansas and Texas; -the St. Louis and Iron Mountain, and the Texas -Pacific. The directors of all the roads were substantially -the same, Mr. Gould being the president, -and his son George, Russell Sage, A. L. Hopkins -and others of his intimate associates being the -directors. The most striking feature about the -management of these roads is that while all the others -were driven into bankruptcy, or to the verge of it, -the Missouri Pacific was made a big dividend-paying -property. Mr. Gould attributed this to the comparatively -small indebtedness of the Missouri Pacific,<span class="pagenum" id="Page_148">148</span> -making it, in his own language, “the snuggest property -on the continent;” but his enemies attributed -the fact to another reason, namely, Mr. Gould’s own -management, by which he was alleged to have -starved the other properties to feed the Missouri -Pacific. His holdings of the latter’s stock were immense, -while his pecuniary interest in the others -was comparatively small; indeed, he held but a few -hundred shares of Missouri, Kansas and Texas, -though its president. His purpose was evidently to -swell the earnings of the Missouri Pacific to such an -extent that he could declare big dividends and sell -his stock at high figures. He succeeded in pushing -the price up to 112 in May, 1887, but it subsequently -fell to 70¼ in March, 1888. The lack of public confidence -in Gould’s railroad methods is strikingly -exhibited in the fact that though Missouri Pacific -paid 6 to 7 per cent. annual dividends, Gould found it -almost impossible to keep the price at par except by -the pegging process, while other equal dividend-payers -brought from 110 to 130 in the market without -manipulation. The same fact was also strikingly -exhibited in Western Union, which paid dividends, -but sold at from 70 to 80.</p> - -<p>Finally the stockholders of the Missouri, Kansas -and Texas became indignant at the destruction of -their property. Much of the stock was held abroad -and was only worth $13 to $15 per share of $100. -They engaged E. Ellery Anderson, the same who -had been a member of the Pacific Railroad Commission, -and Simon Sterne, who had been the counsel<span class="pagenum" id="Page_149">149</span> -for the Hepburn Committee, to represent them, -and in connection with such Wall street men as -W. L. Bull, shortly after elected president of the -Stock Exchange, they hurled the Gould management -from power. They publicly charged Mr. Gould with -having used the road simply as a feeder to the Missouri -Pacific. Mr. Gould succeeded, at least in part, -with his plans in regard to Missouri Pacific, and is -understood to have marketed a large block of his -holdings in 1888. Shortly after that the road reduced -its dividend and had to borrow money to -pay it.</p> - -<p>One of the most memorable events connected -with Gould’s management of the Missouri Pacific -was the great Knights of Labor strike in 1885, which -disabled the road for a long time. An interesting -feature of the strike was a Sunday conference at Mr. -Gould’s house between him and General Master -Workman Powderly, at which negotiations for a -settlement were entered into. The foremost representatives -of capital and labor thus met to settle -vital questions at issue affecting the wealth of the -capitalists and the livelihood of the workingmen. -Mr. Gould said to the Senate Committee on Labor -and Education:</p> - -<p>“I have been all my life a laborer or an employer -of laborers. Strikes come from various causes, but -are principally brought about by the poorest and, -therefore, the dissatisfied element. The best workers -generally look forward to advancement in the ranks -or save money enough to go into business on their<span class="pagenum" id="Page_150">150</span> -own account. Though there may be few advanced -positions to be filled, there is a large number of -men trying to get them. They get better pay here -than in any other country, and that is why they -come here. My idea is that if capital and labor are -let alone they will mutually regulate each other. -People who think they can regulate all mankind and -get wrong ideas which they believe to be panaceas -for every ill, cause much trouble to both employers -and employes by their interference.”</p> - -<p>To the Congressional Committee which investigated -the Missouri Pacific strike he said: “I am in -favor of arbitration as an easy way of settling differences -between corporations and their employes.”</p> - -<hr /> - -<div id="toclink_151" class="chapter"> -<p><span class="pagenum" id="Page_151">151</span></p> - -<h2 class="nobreak" id="CHAPTER_XI">CHAPTER XI.<br /> - -<span class="subhead">GOULD AND THE TELEGRAPH MONOPOLY.</span></h2> -</div> - -<p class="drop-cap"><span class="smcap1">The</span> manipulation of values and the methods of -running the railroad and telegraph systems of the -United States effect more nearly the personal interests -of every individual than do any of the other -great enterprises of the country. It is for that reason -that Jay Gould’s actions in his railroad properties -and his telegraph companies are such an important -factor of interest in the events of his life.</p> - -<p>Mr. Gould’s connection with the Western Union -Telegraph Company began in the early part of 1881. -For a number of years, with the aid of the American -Union and the Atlantic and Pacific telegraph companies, -which he controlled, he was able to advance -and depress the stock of the Western Union at will. -He was simply playing a great game with his larger -rival and waiting the chance when he would take -possession and unite all the lines.</p> - -<p>One example of Mr. Gould’s finesse in connection -with the Western Union will show his methods. -By 1880 his American Union company had become -a constant menace to the other company. Rates to -every competing point had been cut, and his lines -reached to the Pacific. Western Union at one period -was up to 116. The wires of the Western Union<span class="pagenum" id="Page_152">152</span> -were taken from the lines of the Union Pacific and -other great railroad systems controlled by Mr. -Gould and those of the American Union were substituted. -The stock of the older corporation fell to -88. It was said at the time that Mr. Gould was -short 30,000 shares of Western Union, and if that -was so he made $840,000.</p> - -<p>But in 1881 Mr. Gould and his associates had -practically secured control of the Western Union. -It was proposed to sell and transfer the entire assets -and property of the American Union and the American -and Pacific to the Western Union directors. -Rufus Hatch, as a stockholder of the American -Union, obtained an injunction restraining the consolidation, -but on February 4, 1881, Judge Barrett refused -to continue the injunction, and by the time he -had concluded his opinion the papers were drawn -up, the consolidation was ratified by the directors of -the three companies, and almost before the country -knew it there was one telegraph company where -there had been three before.</p> - -<p>The stock of the Western Union Telegraph Company -was at once “watered” $40,000,000, or thirty-seven -per cent. and Mr. Gould became the leading -spirit in that company, directing its affairs from his -offices, which were in that building.</p> - -<p>Nothing Mr. Gould ever did in his life so arrayed -public sentiment against him as this creation of the -telegraphic monopoly. Eventually the Western -Union acquired the Baltimore and Ohio telegraph, -which Robert Garrett was glad to sell in order to get<span class="pagenum" id="Page_153">153</span> -money to help the Baltimore and Ohio railroad out -of the difficulties into which it had fallen.</p> - -<p>Repeated efforts were made by the stockholders -of the American Union to secure the interference of -the attorney-generals of various states, but the consolidation -stood. In May, 1882, the Western Union -secured control of all the European cables, and no -little comment was aroused soon thereafter when it -was charged that Mr. Gould was making an effort to -secure control of the New York Associated Press, -or, at least, of the news which it sent out. He was -reputed to control at that time three of the seven -newspapers constituting the corporation, and something -of a sensation was caused by the charge. The -Western Union’s control of the cables became so -absolute that the Mackay-Bennett cables were laid -and gave a competing service to Europe, which was -afterward largely extended to other parts of the -world.</p> - -<p>In probably no other country of the world would -one man be permitted to control its telegraph system. -But Gould became the absolute dictator of -the Western Union and successfully overcame every -competitor that arose. His record in Western -Union, like that in his other properties, is that of a -tremendous increase of securities. Like the wicked -milkman, Gould always skimmed off the cream and -poured water into all his properties. The comic -papers delighted to picture him with a watering-pot -in his hand.</p> - -<p>The mainspring of the Western Union is monopoly.<span class="pagenum" id="Page_154">154</span> -Its condition is such that it cannot exist with -profit to its stockholders with a strong competition -in the field. Thus it is a grand aggregation of small -companies. It has absorbed and will probably continue -to absorb every rival in the field. Gould himself -rode into control on the back of a competing -company. This was early in 1881. His version of -the story is given in his testimony to the Senate -Committee on Labor and Education.</p> - -<p>“I am interested in the telegraph,” he told the -committee, “for the railroad and telegraph systems -go hand in hand, as it were, integral parts of a great -civilization. I naturally became acquainted with -the telegraph business and gradually became interested -in it. I thought well of it as an investment, -and I kept increasing my interests. When the -Union Pacific was built I had an interest in a company -called the Atlantic and Pacific, and I endeavored -to make that a rival to the Western Union. We extended -it considerably, but found it rather uphill -work. We saw that our interest lay more with -the Western Union. Through that we could reach -every part of the country, and through a small -company we could not; so we made an offer to sell -to Western Union the control of the Atlantic and -Pacific. At that time a very dear friend of mine was -the manager, and I supposed that he would be made -the manager of the Western Union; but after the -consolidation was perfected it was not done, and I -made up my mind that he should be at the head of -as good a company as I had taken him from. The<span class="pagenum" id="Page_155">155</span> -friend was Gen. Eckert, and for him I started -another company, the American Union—and we -carried it forward until a proposition was made to -merge it also into the Western Union. As the stock -of the latter went down, I bought a large interest in -it, and found that the only way out was to put the -two companies together. Gen. Eckert became -general manager of the whole system. Meantime, I -bought so much of its property and its earning -power that I have kept increasing my interest. I -thought it better to let my income go into the things -that I was in myself, and I have never sold any of my -interests, but have devoted my income to increasing -them. This is the whole history of it.”</p> - -<p>This beautiful account of Gould’s devotion to a -friend, to the extent of starting a telegraph company -for him, does not, however, tell the whole story. -Gould’s policy in regard to the American Union was -twofold. It was to establish a competing company -so strong that the Western Union would have to absorb -it, or else it would absorb the Western Union. -The result was that the Western Union did absorb -the American Union and Gould absorbed the Western -Union! By the aid of his rival company Gould -kept hammering at the stock of the Western Union, -then controlled by Vanderbilt. By every art known -to Wall street speculation he forced the price down -as low as he could. He sold the stock “short” in -large amounts, and in buying to cover bought -enough additional to place him in control. Then -he consolidated the two companies and 100,000<span class="pagenum" id="Page_156">156</span> -shares of American Union, which represented a -comparatively small outlay of capital on the part -of Gould, went into the Western Union at par and -Gould’s immense holdings of Western Union were -thus acquired at a low figure. Of course, if he had -attempted to market his holdings in one lump his -profits would have been wiped out, but by carrying -the load and letting the stock out by driblets -his profits were large, even if he sold under the -market price, which was nearly always below par. -On Jan. 11, 1881, it became known in Wall street -that the consolidation was probable and the price of -Western Union rose from 78 to 103 and the next day -to 114½. The consolidation increased the capitalization -of the Western Union to $80,000,000, and -this amount has increased later by the capitalization -of scrip dividends and by the acquisition of -the Baltimore and Ohio telegraph. After Gould -became the master of the system the Mutual Union -was started as a rival concern. Gould soon gobbled -it up and leased it to the Western Union. Then -Robert Garrett developed the wires owned by the -Baltimore and Ohio railroad into a competing telegraph -system, and under the management of Mr. -Bates, who had formerly been with Gould in American -Union and Western Union, it became a big system, -stretching far west and south. But Garrett -soon got into deep waters. He had not the genius -of his father, the famous John W. Garrett, and a -struggle with Gould was beyond his strength. The -Baltimore and Ohio railroad, nominally a Gibraltar<span class="pagenum" id="Page_157">157</span> -of strength, was intrinsically weak. Garrett entered -into negotiations to sell a controlling interest in the -property. His desire was to place it in hands hostile -to Gould, but the latter used his power in the stock -market to frustrate his plans. Garrett contracted to -deliver the control to Henry S. Ives, a young speculator -who was modeling his life after the Gould -pattern, but in the end Garrett was not able to deliver, -nor was Ives able to receive. The B. and O. -system was dismembered, and the telegraph fell into -Gould’s hands. Gould had previously announced to -the public that “the Western Union does not intend -to buy any more rival telegraph companies,” but -when he found he could get the B. and O. cheap, a -little declaration of that kind did not stand in the -way. In fact it was intended only to mask his intention -to buy.</p> - -<p>Gould drew around him in Western Union a -powerful body of men. His board of directors included -Norvin Green, Harrison Durkee, Alonzo B. -Cornell (who when governor of the state from 1880 -to 1883 posed as an anti-Gould and anti-monopoly -governor), Cyrus W. Field, Robert L. Kennedy, -Hugh J. Jewett (whose testimony in regard to Erie -has already been quoted), J. Pierpont Morgan, of -Drexel, Morgan & Co.; C. P. Huntington, R. C. -Clowry, Henry Weaver, Erastus Wiman, of R. G. -Dun & Co.; John Jacob Astor, Frank Work, George -B. Roberts, president of the Pennsylvania railroad, -the leading railroad system of the world; George D. -Morgan, John Hoy, W. D. Bishop and J. W. Clendenin.<span class="pagenum" id="Page_158">158</span> -The management, however, was in the hands -of an executive committee composed of Gould’s -immediate associates. The Western Union, besides -its land system, owns ocean cables and has a big -interest in the telephone and stock “ticker” systems, -and Gould’s power as the master of this company -can scarcely be estimated.</p> - -<p>It is believed that Mr. Gould’s real ambition, so -far as concerned the Western Union, was to sell it -to the government. But so long as the country -believed that Jay Gould desired to sell there could -be no public opinion aroused in favor of purchasing -it. So Gould, if such was his real desire, masked -his purpose behind a display of indifference or opposition, -in the hope that if it was thought he did not -wish to sell the country would be all the more eager -to buy. Thus he told the Committee on Labor and -Education:</p> - -<p>“I think the control by the government is contrary -to our institutions. The telegraph system, -of all other business, wants to be managed by skilled -experts, while the government is founded on the -idea that the party in power shall control the -patronage. If the government controlled it the -general managers’ heads would come off every four -years and you would not have any such efficient service -as at present. The very dividend of the Western -Union is based upon doing business well, keeping -her customers and developing her business. If the -Democrats were in power there would be a Democratic -telegraph; if the Republicans came into power<span class="pagenum" id="Page_159">159</span> -there would be a Republican telegraph, and if the -reformers came in I don’t know what there would -be. (Laughter.) I think it would be a mere political -machine. I would be perfectly willing, so far as -I am concerned, to allow the government to try it, -to sell out our property, but it would be very unjust -to take it away, the property of our own citizens, and -make it valueless.”</p> - -<p>“Have you any idea what the government ought -to pay?”</p> - -<p>“I think that it ought to pay what it is worth -and no more. I think that the method that was -provided in the law is a very just one, and I would -be perfectly willing to let the government take it on -those terms.”</p> - -<p>“What, in your opinion, is the Western Union -property worth?”</p> - -<p>“Well, I judge of property myself by its net -earning power; that is the only rule I have been -able to get. If you show me a property that is paying -no more than the taxes, I don’t want it. I want -property that earns money. You might say that -there is water in Western Union, and so there is. -There is water in all this property along Broadway. -This whole island was once bought for a few strings -of beads. But now you will find this property -valued by its earning power, by its rent power, and -that is the way to value a railroad or a telegraph. -So it is worth what it earns now, a capital that pays -seven per cent.”</p> - -<p><span class="pagenum" id="Page_160">160</span></p> - -<p>“That would be $100,000,000?”</p> - -<p>“Yes, and it is worth much more than that, -because there are a great many assets.”</p> - -<div id="i_161" class="figcenter" style="max-width: 28em;"> - <img src="images/i180.jpg" width="1737" height="2591" alt="" /> - <div class="caption">GOULD FAINTING AT DIRECTORS’ MEETING IN RUSSELL SAGE’S OFFICE.</div></div> - -<hr /> - -<div id="toclink_161" class="chapter"> -<p><span class="pagenum" id="Page_161">161</span></p> - -<h2 class="nobreak" id="CHAPTER_XII">CHAPTER XII.<br /> - -<span class="subhead">GOULD AND THE MANHATTAN ELEVATED.</span></h2> -</div> - -<p class="drop-cap"><span class="smcap1">Jay</span> Gould was not an originator of systems. -Others with ideas secured charters, began railroads -and other schemes, and then, when money -was needed, Gould would step in and profit by their -energies by purchase at low figures. This was never -more forcibly illustrated than by his connection -with the elevated railroad system of New York City.</p> - -<p>He had nothing to do with their construction. -In fact, Gould’s name is unidentified with any great -public undertaking original with himself. Other -men planned and built. He grabbed. He did, it -is true, start a telegraph company, and put up poles -and wires, but it was only as a part of his plan to -capture a system already constructed. So the -elevated roads—the measurable solution of the -problem of rapid transit in the metropolis and an -inestimable boon to the city—are not due to the -foresight, pluck and energy of Gould. Other men -were the pioneers, but they were driven to the wall -and forgotten, while he plucked the fruits of their -labors.</p> - -<p>Gould, naturally enough, came into control of -this great system, which carries 600,000 passengers -every day, through a consolidation and the “watering”<span class="pagenum" id="Page_162">162</span> -of stock. There were three elevated roads—the -Metropolitan (formerly the “Gilbert,” named -after its originator, Dr. Gilbert), of which S. H. -Kneeland was president; the second, the New York, -of which Cyrus W. Field was president and of which -Samuel J. Tilden was once a heavy stockholder, and -the third, the Manhattan, of which Jay Gould and -Russell Sage were the owners. The Metropolitan -and the New York were bona-fide companies, -actually owning railroads and rolling stock, but the -Manhattan was a “paper” company, having a -nominal charter and an organization, but not one -inch of road. Yet these three companies were consolidated -on equal terms, and Gould, Sage and Field -became the owners. Later the control narrowed -down to Gould and Sage.</p> - -<p>Sage, Field and Kneeland are remarkable characters -in Wall street history, and their names are -intimately identified with Gould’s—Sage and Field -as associates, and Kneeland as an unpurchasable -opponent. Russell Sage is one of the richest men -of his generation. He came originally from Troy, -where he ran a bank, and whose district he represented -in Congress, before the war, for one or two -terms. Then he entered Wall street. His great -distinguishing trait was avarice. He worshipped -the mighty dollar. Money-getting was his passion—not -for the power and luxury which money can -purchase, but for the mere pleasure of acquisition. -He lived, it is true, on Fifth avenue, and gave somewhat -to charity, but his habits were economical<span class="pagenum" id="Page_163">163</span> -almost to the point of penuriousness, and once a -dollar got into his hands it did not easily slip through -them. It should be said of him, however, that he -was as careful of other people’s money as of his own. -This was the man who for many years was Gould’s -most intimate business associate, a director in all -his companies and a partner in all his schemes. -Gould estimated Sage’s wealth at $50,000,000 and -their combined capital was thus enormous. Sage -was chiefly a money-lender in Wall street. He carried -an immense amount of ready cash and was of -incalculable aid to Gould in all his undertakings. -It is indeed one of the traditions of the street that -Sage saved Gould from ruin at a time when he was -hotly pressed by James R. Keene and other bear operators. -Field was a different kind of a man. He -liked money but only as a means to an end, and he -had not the heart or mind to roll up a colossal fortune -in the way that Gould and Sage did, though he -shared for a time in their enterprises. But at one -time he was worth millions. Field’s passion was -love of fame. His brothers all gained distinction in -the professions; he sought and obtained distinction -in commercial life. One of his brothers sat on the -Supreme Bench of his country. Another was a -leader of the New York Bar. A third was a noted -clergyman, editor and traveler. Cyrus W. Field -began his business life as a rag merchant, but with -indomitable pluck, energy and foresight he finally -succeeded in constructing the first Atlantic cable, -and was honored both in London and New York.<span class="pagenum" id="Page_164">164</span> -Mr. Field sought almost equal distinction in connection -with the elevated railroads, whose great importance -he comprehended, and he made a bid for -popularity by insisting on a reduction of the fares -from 10 to 5 cents against the wishes of Gould and -Sage. Sage first became acquainted with Gould in -Troy. Field first became identified with him in 1879, -when he (Field) was president of the Wabash railroad, -though we have seen him as a guest at the -famous banquet given to President Grant on “Jim” -Fisk’s steamboat in 1869.</p> - -<p>Mr. Gould turned his attention to the elevated -railroads in this city early in 1881. The Manhattan -company was then in control of all the lines as lessee, -and to Mr. Gould’s keen vision that company presented -the appearance of being on the verge of -financial disaster. The Manhattan company had -issued $13,000,000 of stock—pure water—and had -divided the same equally between the Metropolitan -and the New York companies. There was much criticism -of the action of the Manhattan corporation in -issuing so large a quantity of stock which was -wholly unrepresented by property. The attorney-general -of this state, Hamilton Ward, obtained permission -from Judge Donohue, May 18, 1881, to begin -a suit for the dissolution of the Manhattan company’s -charter and the appointment of a receiver. Other -suits were begun about the same time to restrain the -Manhattan company from paying any dividends on -its stock. Of course these suits tended to depress -Manhattan stock in the stock market.</p> - -<p><span class="pagenum" id="Page_165">165</span></p> - -<p>Gould, Sage and Field agreed together to consolidate -the three elevated railroad companies. -They were, however, met by the determined opposition -of President Kneeland, of the Metropolitan -road. Nothing could induce him to waver in his -opposition. His associates in the Metropolitan deserted -him, and one by one they went over to Gould, -but he stood firm to the very last, and his persistency -caused a celebrated litigation, which proved -so protracted and costly that Kneeland was finally -defeated, though his spirit was unsubdued.</p> - -<p>At that period Mr. Gould was the owner of the -New York <i>World</i>, and for several months in 1881 -that newspaper was greatly exercised over the bad -management and “financial rottenness” of the Manhattan -company. Scarcely a day would pass that -the <i>World</i> did not contain an editorial or a news paragraph -attacking Manhattan. The stock kept dropping -two, three and five points at a time. With the -beginning of July, 1887, suits were pending against -the three elevated railroad companies in all of the -state courts in which they could be brought. Mr. -Gould became a stockholder in the Metropolitan -company on the 1st of that month, 100 shares of -stock having been transferred to him by Russell -Sage. On July 8th, Mr. Gould, Mr. Connor, Mr. -Navarro, and other friends of Mr. Gould were elected -directors of the Metropolitan company. On the -same day Attorney-General Ward entered an order -discontinuing his suit against the Manhattan company -in this judicial district. He immediately, however,<span class="pagenum" id="Page_166">166</span> -applied to Judge Westbrook at Kingston, and -obtained an order appointing ex-Judge John F. Dillon -and Albert L. Hopkins receivers of the Manhattan -company. A few days afterward Cyrus W. -Field began a suit to take the New York company’s -roads out of the hands of the Manhattan company, -and later an application was made to the receivers -to sue the New York and Manhattan companies for -the $13,000,000 of stock issued without consideration. -In the meantime the <i>World</i> kept up an incessant fire -of criticism and denunciation of the Manhattan company. -The price of the stock naturally kept dropping -until it got as low as 16.</p> - -<p>Early in October Mr. Gould went into the Manhattan -company, and it was proclaimed that he and -his friends had obtained control. They held more -than 70,000 shares, nearly all of which they had been -able to pick up in the stock market at prices ranging -from 20 to 16 cents on the dollar. All of the timid -original stockholders had been scared into sacrificing -their holdings by the confusing cloud of litigation -and the attacks of Mr. Gould’s newspaper.</p> - -<p>For a while after Mr. Gould got control of the -Manhattan company there was some show of fight -between him and Cyrus W. Field, who represented -the stockholders of the New York company. Soon -Gould, Field and Sage came together and had an -amicable understanding. An opinion was obtained -from Judge Westbrook, who held court in Jay -Gould’s private office, denying the application of -the New York company to get its road out of the<span class="pagenum" id="Page_167">167</span> -hands of the Manhattan company, and in the latter -part of October the Gould-Field-Sage party entered -into an agreement in behalf of the three companies -by which the Manhattan stockholders were to receive -only 6 per cent. dividend on their stock instead of -10 per cent. Next came an order from Judge Westbrook -taking the Manhattan company out of the -hands of the receivers, and that corporation, which -was absolutely under Gould’s control, proceeded to -rivet its hold upon the entire elevated railway system -of this city. Immediately following Judge Westbrook’s -action the Manhattan stock went above 52, -and on November 9th, the day that Jay Gould was -elected president of the company, the stock was -quoted at 55.</p> - -<p>The steps which Gould and his associates took -to “freeze out” the original stockholders of the Metropolitan -company were exposed by the New York -<i>Times</i> in a series of articles beginning in December, -1881, and continuing until the Legislature ordered a -special investigation into the matter in April, 1882. -Specific charges were made against Hamilton Ward, -as attorney general, and Justice Theodoric R. Westbrook -of the Supreme Court for their part in the elevated -railroad proceedings, and the Judiciary Committee -of the Assembly spent several weeks in taking -testimony. Jay Gould and others were examined, -and letters and telegrams from Judge Westbrook to -Gould’s lawyers were produced in evidence, showing -that Westbrook had a very friendly understanding -with Mr. Gould. It was also proved that on two<span class="pagenum" id="Page_168">168</span> -occasions Judge Westbrook exercised his judicial -functions in Gould’s private office. The committee -was divided in its conclusions and Westbrook just -escaped impeachment. The effective lessons of the -exposure and the official investigation, however, put -a stop to further “freeze-out” tactics in dealing with -the honest stockholders of the Metropolitan Elevated -Railroad Company. Those who had refused -to be shaken off by the bearish assaults on the property -finally received satisfactory compensation for -their property from Mr. Gould and his associates.</p> - -<p>After obtaining full control of the elevated railroad -system, Gould and his associates voted to -double the capital stock, making it $26,000,000. In -opposing the reduction of the fare from 10 cents to -5 cents, they argued that a 5 cent fare would not enable -them to pay dividends on their $26,000,000. A -member of the Senate committee suggested that -they might reduce their capitalization. Mr. Field -became identified with all of Mr. Gould’s properties, -but gave most of his attention to the development -of the elevated roads. In 1886 he inaugurated -the big bull movement in Manhattan stock. He -“boomed” the stock in every possible way, and -bought immense quantities, and publicly predicted -that it would sell at 200. He succeeded in pushing -the price to 175. Like almost all artificial corners -this movement collapsed suddenly and Mr. Field -was nearly buried in the ruins. Many believed at -the time that this collapse was precipitated by -Gould and Sage. It might have come about by<span class="pagenum" id="Page_169">169</span> -other causes, but Gould gave the tottering structure -the push that leveled it to the ground. There were -many reasons, it was argued, for his action. First, -Field was no longer necessary, but on the contrary -a hindrance to Gould and Sage, and they therefore -wanted to get rid of him; and second, Field was conducting -his bull movement independently of them. -They would profit by his fall, while if he succeeded -the system might pass into his hands. So in June, -1887, came the collapse. Mr. Field never charged -Gould with having precipitated it, and Gould himself -claimed that he came to the rescue of Field -and saved him from bankruptcy. It was, however, -a remarkable deal and one by which Gould made -himself absolutely master of the elevated system, -of which in 1891 he made his eldest son vice-president, -and another son a director. Field was carrying -an immense amount of stock on margins and -was consequently a heavy borrower of money. -Gould and Sage were lenders. The bank reserves -were low. Gould and Sage called in their loans and -Gould found it impossible to negotiate loans and -was thus obliged to throw over his stock at a sacrifice. -The price of Manhattan fell from 160 to 120 -and Gould purchased from Field 78,000 shares at -prices understood to have ranged from par to 120. -Field saved his real estate and other property, but -his power in the street was gone. His later history -was a tragedy. In 1891, within a few weeks, he lost -his wife and his son became a disgraced bankrupt. -A few months ago Field died, broken hearted.</p> - -<hr /> - -<div id="toclink_170" class="chapter"> -<p><span class="pagenum" id="Page_170">170</span></p> - -<h2 class="nobreak" id="CHAPTER_XIII">CHAPTER XIII.<br /> - -<span class="subhead">THE LIFE OF A WALL STREET KING.</span></h2> -</div> - -<p class="drop-cap"><span class="smcap1">While</span> it is true that the story of Jay Gould’s -career in Wall street is closely allied with -his outside operations, a full account of which has -already been given, there still remain many other -incidents connected directly with his work on the -street of unusual interest. Out of this mass of material -but two or three incidents of the most commanding -interest can be used.</p> - -<div id="i_170" class="figcenter" style="max-width: 31em;"> - <img src="images/i191.jpg" width="1950" height="2774" alt="" /> - <div class="caption">GOULD’S BIRTHPLACE, AND HIS PALACE ON THE HUDSON.</div></div> - -<p>The most dramatic of these was the pommeling -of Jay Gould by Major A. A. Selover in August, -1877. Selover was a Californian, a six-footer, a -blond, muscular and vigorous. He first attained -prominence in Wall street when James R. Keene -came East after his successful mining operations in -San Francisco, by which he achieved a fortune of -$8,000,000. Keene was a daring, almost foolhardy -stock gambler. He always played for big -stakes and took enormous chances. His success in -San Francisco had been so great that he entered -Wall street with the idea of clearing all before him. -He tackled Gould as the biggest animal in the -arena, but found to his sorrow that he had to deal -with a man more able than he, scarcely less daring -but far more cautious. In a few short years Keene’s -wealth had dwindled away, and early in 1884 he<span class="pagenum" id="Page_171">171</span> -failed, owing hundreds of thousands of dollars in -the shape of “puts,” “calls” and “straddles.” He -dropped at the rate of about a million dollars a year -in Wall street, and no small proportion of this found -its way into the pockets of Gould. Yet Keene at -one time was thought to have outmatched Gould. -Selover introduced Keene to Gould, and acted as -go-between for them in certain operations in which -both were interested. Early in 1877 the two men -combined forces in one deal. That is to say, they -joined in one enterprise and fought each other behind -each other’s back. It was a case of diamond -cut diamond. Keene formed a big pool, and, beginning -to fight Gould, finally went over to him, -being led into this change largely through the -instrumentality of Selover. Both Keene and Selover -then operated on an understanding with Gould, -but soon found, as they charged, that Gould was -secretly selling them out. Gould and Keene had a -stormy scene in Russell Sage’s office, when the -latter is said to have brandished a pistol in -Gould’s face. The deal had been mainly in Western -Union, which Gould did not then control, -and Atlantic and Pacific, which he did control. -Gould’s double-dealing not only made Keene very -mad, but made Selover very desperate. He had -placed reliance in Gould’s statements and had suffered -loss, and resolved upon revenge. Accordingly, -on the 2d of August, 1877, while walking down -Exchange place from Broadway, Selover, meeting -Gould walking up to the office of Belden & Co.,<span class="pagenum" id="Page_172">172</span> -No. 80 Broadway, of which he was then a partner, first -engaged him in what appeared to be an amicable -conversation, but soon resulted in an assault. Selover -first struck Gould in the face and then dropped -him over an areaway at No. 65 Exchange place, -which was seven or eight feet deep. Mr. Gould was -a good deal shaken up, but not seriously injured. -Selover left to go to his brokers and Gould proceeded -to transact his business as usual. He was -assisted from the areaway, singularly enough, by -George Crouch, who has been identified with several -incidents in Gould’s career from the days of Erie -and Black Friday to the Kansas Pacific criminal -prosecution, and who was one-third artist, one-third -newspaper man and one-third speculator. The Selover -incident created an immense sensation at the -time, and the newspapers printed columns about it. -Selover became quite a hero, for while there was -nothing very courageous in his assault from a physical -point of view, as he was more than a match for -timid Mr. Gould, yet to attack Gould was considered -by many an act of moral bravery. Selover declared -that he had attacked Gould because Gould had been -guilty of fraud, lying and duplicity. Gould, he said, -had made arrangements with him to go short on -Western Union, and while he (Selover) was selling -accordingly in good faith he discovered that Gould -was buying heavily. When he learned of this he -determined to punish him the first time he met him, -and so he had charged him with the fraud and slapped -his face. “I attacked him on my own account alone,”<span class="pagenum" id="Page_173">173</span> -he added, “and regardless of the fact that he had -played Jim Keene the same trick. He is notoriously -treacherous, and this is not the first time he has been -punished for the same offense.” Poor Mr. Selover -never amounted to very much in Wall street after -this, though he continued to be seen there daily. -Gould, after this incident, rarely appeared in the -street unless accompanied by stalwart G. P. Morosini.</p> - -<p>It is related that not long after this Keene came -near getting his revenge on Gould. The latter was -putting all his energies into Union Pacific, and carrying -$22,000,000 of the stock, mostly in margins. -Keene organized an opposition party and nearly -succeeded in breaking Gould. Sage, however, came -to the latter’s assistance with $2,000,000 of much-needed -cash, and Gould was saved. Keene’s purpose -was to drive Gould from the street forever, but -he not only failed, but in a few years he was himself -a bankrupt, with Gould more powerful and richer -than ever.</p> - -<p>Rumors of Gould’s death and of his impending -bankruptcy were not infrequently circulated in Wall -street. Rumors of death could be easily disproved, -but once, at least, the street was firmly convinced -that Gould was in financial difficulties, and Gould -was obliged to exhibit his wealth in order to prove -that he was solvent. On March 13, 1882, Gould exhibited -to Sage, Field and Frank Work his box of -securities, to show that he was not only solid, but -also had not been a seller of stocks. He exhibited<span class="pagenum" id="Page_174">174</span> -to the astonished vision of these associates $23,000,000 -of Western Union, $12,000,000 of Missouri -Pacific, and $19,000,000 of other stocks. Russell Sage -said: “There is not another man in America except -Vanderbilt who could make such a display of stock -as that.” In 1884 Gould made another exhibition of -his securities to John T. Terry and others, and the -display was even bigger than two years before.</p> - -<p>The panic of 1884 is believed to have caused Mr. -Gould much anxiety. It came suddenly and without -warning. There had been earlier in the year, it -is true, the collapse and resignation of Henry Villard, -soon followed by the failure of James R. Keene, -but these disasters would not have produced the -financial earthquake that shook Wall street in May. -The failure of the Marine Bank and Grant & Ward, -with the revelations which followed of embezzlement -on a scale never before witnessed in the street, -and the suspension on the memorable 13th and 14th -of the month of the Metropolitan Bank, George I. -Seney and seven or eight prominent banking-houses -in this city and two banks in Brooklyn and Newark, -caused a panic like that of 1869 and 1873, and from -the depressing effects of which the street did not -rally for several years. Gould’s fortune melted like -snow in the decline of values which accompanied -this panic. He came out of it probably $20,000,000 -poorer than when it began. But this loss, it is true, -was chiefly on paper. He was able to hold most of -his securities, the value of which afterward increased. -But it is believed that he was at one time<span class="pagenum" id="Page_175">175</span> -very hotly pressed. His associate, Russell Sage, -lost millions in the decline by his operations in puts -and calls. His office was besieged by a mob clamorous -for their profits. The old man reluctantly -paid up, and, badly scared and sick at heart, retired -from the street for a while, hoarding the $40,000,000 -or $45,000,000 which was still left to solace him.</p> - -<p>The men who chiefly profited by the great decline -were Charles F. Woerishoffer and Addison -Cammack, the leaders of a small but powerful bear -party, which for several years had been preparing -for this depression, and by all the bear tactics, of -which they were masters, assisting in the downward -movement. They were two men of mark. Woerishoffer -was the superior in mind and nerve. When -he died in 1886, while under forty years of age, he -was worth, it is said, $8,000,000 to $10,000,000, the -result of his daring speculation. He was probably -the ablest stock speculator Wall street has ever -seen, not excepting Gould, whose principal success, -it should be remembered, was in operations outside -of the street. Woerishoffer was by birth a German, -and was the son-in-law of Oswald Ottendorfer. -Some of the most successful men in Wall street, it -may be remarked, are Germans or of German -descent, as for instance Villard, who after his collapse -in 1884 had recovered in 1888 the ground he -had lost; August Belmont, the banker, the Wormsers -and the Seligmans. Cammack was a man of much -coarser nature than Woerishoffer. He came originally -from the South, and the Wall street tradition<span class="pagenum" id="Page_176">176</span> -was that he had been a slave-driver by profession. -Gruff in his manner, uncouth in his language, he yet -had qualities as a speculator which made him a -power in the street. These two men, with their following, -are believed to have very nearly driven -Gould to the wall in 1884, and the story is that -Gould might have gone down if Cammack, of all -men, had not relented. This story, like many others -told in Wall street, probably has a mixture of -truth and fiction. In 1887 and 1888 Cammack was -very evidently in alliance with Gould in stock operations.</p> - -<p>Gould was not a member of the Stock Exchange, -though he was often the biggest customer the institution -had. He was, however, almost always in general -or special partnership with some member of the -Exchange and thus obtained all the advantages -of personal membership. After the dissolution of -the house of Smith, Gould & Martin, Gould became -the silent partner in the firm of William Belden & -Co. This was succeeded by the famous house of -W. E. Connor & Co., which lasted about ten years -and which engineered some of Mr. Gould’s most -successful deals. At the time Mr. Gould retired -from the firm, in 1886, it was composed of himself -as special partner and of Washington E. Connor, -G. P. Morosini and George J. Gould, the great operator’s -eldest son. Mr. Connor was the ideal broker -and perhaps the most valuable lieutenant Mr. Gould -ever had. Not overscrupulous in carrying out the -interests of his master, he was faithful to the last<span class="pagenum" id="Page_177">177</span> -minute to him. Tempting offers were made to buy -him off at various times, and he might have made -several fortunes in betraying the confidences of his -chief, but it is believed he was always true. Like -Morosini, he allied his interest to those of Gould -and profited by the connection. When the firm dissolved, -Gould said of his partners: “Both are very -rich men. Mr. Connor is worth at least a million and -Mr. Morosini two or three times as much. The new -firm will have my heartiest good will in whatever it -undertakes. Between Mr. Connor, Mr. Morosini and -myself there has never been an interruption of good -feeling.”</p> - -<p>Mr. Connor was not only faithful, but quick and -shrewd in his judgments. Upon him rested nearly -all the details of the best operations of the house. -These operations often required the assistance of -fifty or sixty brokers. Often these brokers did not -know that they were working for the same client. -Sometimes they were ignorant even of the fact that -Gould was their client. The prime necessity in -great stock operations is to conceal one’s movements. -Sometimes a part of the brokers might be -selling and a part might be buying. Gould and -Connor alone held the strings of the intricate operations. -One of the first great successful movements -the house undertook was in Kansas Pacific in 1879. -The stock within a period of a few months shot up -from 8 to 97, and the bonds from 10 to 110. Gould -cleared nearly $10,000,000 by this operation. The -most brilliant feat accomplished by the house was<span class="pagenum" id="Page_178">178</span> -performed when Gould acquired Western Union. -Mr. Gould for a long time, as has been related, had -been an uncompromising bear on the stock. The -whole street was aware that he and his firm were heavily -short of the stock. Suddenly the stock began to -rush up. Gould was caught for once, it was said. -The truth was that Connor had engineered the movement -and Gould had not only bought in all his shorts -but purchased enough stock to give him control of -the company. It was also this house that pushed -Western Union up from 78 to 91 and pushed Henry -Smith and other bears to cover their shorts at a -heavy loss. It also handled the elevated railway -deals.</p> - -<p>While Gould and the Beldens were in partnership -at No. 80 Broadway, Connor had a small office -in the rear. He was bright, sharp, sagacious, -reticent and nearly as well informed as Gould himself. -Gould was drawn to Connor naturally, and -when the former fell out with the Beldens he and -Connor formed a co-partnership. Mr. Morosini for -many years had been Mr. Gould’s man Friday, and -was invariably seen with a large canvas bag following -his employer to the safe deposit vaults and -protecting him against any repetition of the Selover -attack. Morosini went into the new firm, whose -limitation only ran from year to year. Connor and -Morosini put in $100,000 each, and Gould, as special -partner, $250,000. George Gould was admitted in -1881, but without paying in a cent. Although the -nominal capital of the house at all times has been<span class="pagenum" id="Page_179">179</span> -$450,000, the actual capital, at times of great activity -on ’Change, ran up into the millions.</p> - -<p>But Mr. Connor was not Gould’s only broker. -Charles J. Osborn was for years one of Gould’s closest -lieutenants and associates, and a more dashing broker -never stepped into the Stock Exchange. William -Heath, “the antelope of Wall street,” as he was called -because of his long legs and slender body, was also -long a favorite with Gould. Heath was a master at -keeping secrets. None of his customers could ever -learn what his other customers were doing. His -faithfulness, experience and ability, however, availed -him little in the end. He assisted Gould in Black -Friday and helped him in many a risky transaction. -When Heath failed with Henry N. Smith in 1885, -Mr. Gould, though, with Morosini, the principal creditor, -did not come to his assistance. It was thought -that Gould would put him on his feet again, but he -did not do so, and Heath—alone, broken in spirit -and in fortune—died shortly after in Staten Island, -but not until he had been lodged for a while in -Ludlow street jail, a prisoner for debt.</p> - -<p>On the dissolution of W. E. Conner & Co., Dec. -31, 1885, Mr. Gould announced his permanent retirement -from the street. That perhaps was his intention -(though he was as prolific in retirements as -Charlotte Cushman), but it was not long before his -presence was again felt in the Stock Exchange.</p> - -<p>Gould had other personal encounters besides the -one with Major Selover. Once, while lunching in -Delmonico’s, a lawyer named Marrin addressed him<span class="pagenum" id="Page_180">180</span> -and asked him to accompany him to a private room. -Mr. Gould declined. Marrin struck him in the face, -saying: “If you have no time to see me, take that!” -Mr. Gould quietly continued his lunch. Mr. Marrin -was summoned before a magistrate and compelled -to give $500 bonds.</p> - -<p>It was his habit to have duplicated reports from -corporation officers before the originals were presented. -He was now and then cheated, but not -often. On one occasion a leading editorial severely -animadverting on him and Fisk was shown to him -before any considerable part of the paper’s edition -had gone to press. He handed the party who -brought him the paper $10,000 in greenbacks and the -edition appeared without the disturbing criticism. -His enemies were numerous, not that he hated any -one himself, but his operations necessarily involved -men of small means and often ruined them outright.</p> - -<p>Congressman John B. Alley is said to have remarked -of him at twenty-four: “I won’t go into -anything with that lad. He is the only person I -ever saw who inspires me with fear.” Vanderbilt -said, “His face is a scoundrel’s.” He was often -accused of “milking the street,” “forcing quotations,” -“washing,” and “covering his shorts,” but on -the other hand, when he agreed to enter a pool he -acted squarely with his associates unless he caught -them at treachery, and then he quietly waited for -an opportunity to pay them off. He was a special -partner in several firms of brokers and carefully -concealed from each his operations with the others.</p> - -<div id="i_181" class="figcenter" style="max-width: 28em;"> - <img src="images/i204.jpg" width="1788" height="2554" alt="" /> - <div class="caption">JAY GOULD’S DEATHBED.</div></div> - -<hr /> - -<div id="toclink_181" class="chapter"> -<p><span class="pagenum" id="Page_181">181</span></p> - -<h2 class="nobreak" id="CHAPTER_XIV">CHAPTER XIV.<br /> - -<span class="subhead">THE KING IS DEAD.</span></h2> -</div> - -<p class="drop-cap"><span class="smcap1">Enormous</span> wealth, power in the world of -finance, every luxury that is at the command of -man except health, that Jay Gould possessed. On -Friday morning, December 3, 1892, at 9:15 o’clock, -his wonderful career was ended. It was a perfect -December morning when the soul of the magnate -went to the undiscovered country, whither it had -been trending for so many months. He died, not as -he had feared to die, by the hand of the assassin or -the dynamite crank, but as peacefully as any babe -whose lamp of life has dwindled to a spark ere it -flickers and goes out. He died surrounded by his -children, in the plain, rear-extension bedroom, with -its window looking down upon the conservatory. It -was the room in which his wife died before him, and -which he had since occupied whenever he was in -the city. It led to the little study where only his -most intimate friends were admitted. Here the last -remnant of his strength ebbed away, and even while an -attendant turned him, he was gone, and $100,000,000 -were without a master. All the members of his -family were at his bedside. There were George J. -Gould and his wife, who was Edith Kingdon. There -were Edwin Gould and the young woman, Dr.<span class="pagenum" id="Page_182">182</span> -Shrady’s daughter, to whom he was so lately married. -There was Miss Helen Miller Gould, named -after her mother, who had taken her mother’s place -as head of her father’s household. There were Miss -Anna and Howard and Frank Gould, the younger -children, and there, too, was Dr. John P. Munn, Jay -Gould’s medical adviser. Mr. Gould’s sons and -daughters had remained by his side until one o’clock -the previous morning. Then he fell asleep, and his -children, worn out, went to bed. They were around -his bed again very early. There lay the Alexander -of speculation, the man who sought new financial -worlds to conquer, who founded possessions on -ruins and wrecks—there lay that man, helpless, -weak as a baby. Always physically frail, the wasting -disease with which he had suffered had greatly -emaciated him. His nose was pinched, his face, -half hidden by his grey-black beard, was almost as -white as the pillow on which it rested. His hands -were like wax, and his languid eyes, dimmed by the -shadows that were falling across his brain, moved -lazily here and there. For although he had fallen -into a stupor during the night, Jay Gould was conscious -in the morning. He knew he was about to -die. He knew the moment was near that he had -fought to delay, fought not through fear of death, -but with a mighty pride that abhorred the thought -that even death should overthrow him.</p> - -<p>For two years or more the great financial manipulator -had been battling with the knowledge that in -his system lurked the seeds of man’s most insidious<span class="pagenum" id="Page_183">183</span> -foe—consumption. He had phthisis pulmonaris in -both lungs. He battled with the knowledge, and he -took no man into his confidence besides his private -physician, who became a sort of trained body servant -to him, and was always within easy call to -watch him when he had acute attacks, and his two -elder sons, George J. Gould and Edwin. A very -master of silence himself, he imposed silence upon -these confidants, and it became their bounden duty -to deceive all others as to the giant which had laid -its grip upon his life.</p> - -<p>And so the story went forth that Jay Gould was -afflicted with nervous dyspepsia merely, and every -now and then he had a bilious attack which “was not -dangerous,” a cry which was repeated even when he -had entered the shadow of the dark valley. Up to -within twelve hours of his death the same cry was -repeated. And even after death there were strenuous -efforts made for some inexplicable reason to shroud -the cause in mystery—a mystery which could have -wrought no good to the dead man’s peace and that -of his surviving family.</p> - -<p>But it was not dyspepsia which sent him to the -South of France, in the Atalanta, under the watchful -eye of his medical guardian, Dr. John P. Munn, -whose occupation is gone indeed. It was not -dyspepsia which sent him to Florida and Southern -California, and El Paso, and the grand resorts of -Colorado, nor which caused him not less than two -weeks ago to plan a trip to Mexico—for he did not -think he was going to die, even then, and no man<span class="pagenum" id="Page_184">184</span> -ever clung to life more fiercely than this frail and -silent embodiment of intellect.</p> - -<p>He knew the truth, but he bit his teeth upon it. -He would not let men into the secret, and sometimes -put himself to actual pain in order to conceal the -truth, as when, only a few weeks ago, on October 26, -he appeared among the guests at Dr. Shrady’s -house and took a quiet part in the Gould-Shrady -wedding, which had been somewhat hurried at his -request.</p> - -<p>This was his last appearance in public, unless you -can count a visit or two to his office in the Western -Union building, to which he went from his home in -a closed carriage, and dodged in by way of the basement -office before any one could see him. No one -who saw him at the wedding would have suspected -that he was so near death, and perhaps he would not -have been had not an injudicious ride, in company -with Dr. Munn, on the day before Thanksgiving, -caused a cold which settled on his lungs, brought on -a hemorrhage and paved the way to death.</p> - -<p>The story of Mr. Gould’s last night on earth is -one easily told. It was as simple as any tale could -be. He was prepared, and so were all the members -of his family. His going off was merely a question -of time. All understood how it would be. He had -laid his earthly house in order, had explained to his -older sons exactly what his property was, how he -had made it, and what he should do to develop it if -he lived.</p> - -<p>He had passed the distressing stage of his disease<span class="pagenum" id="Page_185">185</span> -and he coughed but little, and that weakly. -The beard upon his face hid to some extent the -terrible emaciation, but the chalky pallor of the -swarthy skin was sharp and startling. He dozed at -times, but never seemed to lose consciousness. He -did not suffer physically. There was nothing to -fight against now but the lassitude of utter exhaustion, -and this the doctors—Munn and Janeway—did -with the most powerful stimulants, thus prolonging -life by a few hours, but doing no good that could be -measured.</p> - -<p>Several times during the night it was thought -that he was going, and the family were hastily summoned -to the bedside. But he rallied each time -with wonderful vitality, and his will remained strong -and under control to the last.</p> - -<p>Those in the house besides the medical attendants -and nurses were the children—George J. Gould, -who is already enthroned as his father’s successor -in business; Edwin, the second son; Helen Miller -Gould, the young heiress, who was the apple of her -father’s eye; Howard, who is just coming into -manhood; the schoolgirl daughter Anna and the -youthful Frank, with Mrs. George Gould, Mrs. -Edwin Gould and a lady intimately connected with -the family.</p> - -<p>Daylight brought an apparent renewal of the -lease of life. It was not much of a rally, but it was -enough to give hope that the invalid would struggle -along through a great part of the day. Windows -were raised and curtains drawn in parts of the<span class="pagenum" id="Page_186">186</span> -house, giving it an animated and lively look which -it had not worn when all the shades were down.</p> - -<p>Shortly after the night-watch of newspaper men -had gone away young Mrs. Gould appeared and -drove away, in her carriage for a brief stay. She -said that her father-in-law was much the same as he -had been and perfectly conscious. An early caller -was General Manager Hain, of the “L” road system. -He stayed but a moment, and when he resumed his -trip down town he little realized that the message of -death, which was to be followed by the draping of -all the “L” road engines, would reach the office -almost as soon as he.</p> - -<p>The December sun came up and gilded the roof -of the extension in which the multi-millionaire lay -gasping out the remnant of his life. It caught in the -glass of the conservatory and sent baffling lights -into the eyes of passers gazing curiously up at the -windows which shrouded the drama of life and death -within. Audacious, it trickled in between the shutters -until a hand closed them tight, and it saw, what -few have seen, the great magician of Wall street -bent low by a power greater than his own.</p> - -<p>Just then, as if moved by some sympathetic force, -all of the raised shades were lowered and the great -house assumed a somber aspect. This was just after -nine o’clock in the morning. A few moments later -a messenger boy came out of the house bearing a -telephone message from Dr. Munn to his wife, stating -that Mr. Gould had died at a quarter past nine -o’clock. And thus the news that a king was dead<span class="pagenum" id="Page_187">187</span> -trickled out unwillingly, as it were, through the -massive oaken doors that front his palace. If Jay -Gould’s secret could have been longer kept it doubtless -would have been, but Death sounds a tocsin -which even a master of silence cannot muffle.</p> - -<p>In all the spacious palace where this rich man -died there was no room more plain and simple than -his own. There was nothing garish, nothing to attract -or astonish the eye, none of the rare and beautiful -bric-a-brac or articles of toilet which have made -Miss Helen’s boudoir famous in the social world. -The furniture was massive, but simple; the colors -were subdued. Through the open door the railroad -manipulator could see his beloved study—a study, -indeed, where he has pored with such relentless zeal -by day and night over law books and other weighty -tomes, planning the campaigns which made him a -Napoleon in his line, and which were so disastrous -to those who opposed him. They were fading now -from his sight. He should plan no more.</p> - -<p>He indicated with a whisper and a gesture that -he was glad his children were all there. And then -he showed a wish to change his position, and as the -attendant turned him over, the spark of his life went -out as if some breath had blown it.</p> - -<p>With the slightest echo of a rattle in his throat -Jay Gould was dead.</p> - -<p>As soon as all was over George and Edwin took -charge of matters and began to prepare for the -funeral. Messages were sent to Mrs. Palm, of Camden, -N. J., and Mrs. Harris, of Philadelphia, Mr.<span class="pagenum" id="Page_188">188</span> -Gould’s sisters, and to other friends, apprising them -of the death; and a telephone message summoned -the undertaker and his assistants who had been waiting -the word from their headquarters in Forty-fourth -street. Vice-President Clark, of the Union Pacific -road, who had been waiting for a week at the Windsor -to confer with his chief, dropped over to the -hotel and sent a number of messages.</p> - -<p>Then a huge cravat of black crape was placed -upon the door-bell to warn passersby that Death -had entered at the door. One by one the flags on -the hotels of the city, on the Western Union and -some other buildings were raised to half mast. The -“L” road engines were draped in black, and soon the -voices of the newsboys crying their extras spread -the tidings through the city.</p> - -<p>Persons loitered about the house where death was -master and gazed up curiously at the windows. -There was but one Jay Gould, and in his going out -lay an infinity of food for curiosity and comment.</p> - -<p>During the day carriages continued to stop at -the mansion and at the house of Edwin Gould, -1 East Forty-seventh street. The Rev. Dr. Paxton -called again in the afternoon, and Chancellor MacCracken -was among those admitted. The members -of the family were, however, entirely inaccessible to -any except their most intimate friends. Cards presented -at the house or at the houses of either of the -sons, with a view to seeing members of the family, -met with the answer that they could not be seen.</p> - -<p>In the afternoon, when the usual parade of carriages<span class="pagenum" id="Page_189">189</span> -was moving up and down the avenue, there -was quite a jam in front of the Gould house. Ladies -would order their coachmen to stop and would peer -inquisitively out of their carriage windows. Pedestrians, -too, would linger on the corners for a few -minutes to look at the house and comment with -each other.</p> - -<p>As might have been expected, the “cranks” were -on hand. Whenever they began to air their ideas -too freely a policeman made them move on. One -of these cranks started to expound at length on the -singular coincidence that it was on the first Friday -in December, one year ago, that the bomb thrower -Norcross blew up Russell Sage’s office, and that on -the first Friday of December Jay Gould had died.</p> - -<p>The Rev. Dr. Paxton, in speaking of Mr. Gould’s -last hours, said: “He had been unconscious for a -number of hours, but as the end approached consciousness -returned. He opened his eyes, and they -wandered around the room where the family was -gathered. He clearly recognized them, and at his -whispered request they went to his bedside. To -each of them in turn he whispered a few words of -farewell. Vitality enough for this was vouchsafed -him. When he had spoken to the last one he -became unconscious again, and in a few minutes -more he passed away.”</p> - -<p>The mystery as to the nature of the ailment -which wrecked Mr. Gould’s health was one of the -features of his last illness. It may be stated as a -peculiar fact that his most trusted friends, and even<span class="pagenum" id="Page_190">190</span> -the members of his family, were not aware of the -disease from which he was suffering until it became -evident that he could only a little longer withstand -its ravages.</p> - -<p>Mr. Gould was variously reported as a victim of -neuralgia, of nervous dyspepsia, and of severe -bilious attacks, and the announcement that what -caused his death was consumption will be received -with a great deal of surprise. But the statement is -true.</p> - -<p>It is further said, that the disease was of several -years’ standing; that Mr. Gould was aware that he -had it, and that his instructions to his physician, -Dr. Munn, were that it should be kept a secret -between them as long as possible. When, therefore, -inquiries, no matter by whom, were made -of Dr. Munn as to Mr. Gould’s ailment, he replied -that it was nervous dyspepsia, and truthfully, for all -consumptives suffer more or less from that complaint.</p> - -<p>To aid his physician in concealing all signs of -the disease, the somewhat extravagant assertion is -made that Mr. Gould was able to prevent himself, by -an effort, from coughing.</p> - -<p>The secret was well kept, and until a couple of -weeks ago Mr. Gould is said to have had confidence -that Dr. Munn’s efforts to delay the progress of the -disease would be attended with some measure of -success, and that he would be able to keep up and -get around for some years. But when he came -down from Irvington some weeks ago he was not so<span class="pagenum" id="Page_191">191</span> -confident. A slight hemorrhage was followed by -several more severe.</p> - -<p>Mr. Gould attended the wedding of his son and -Miss Shrady, at Dr. Shrady’s house on November 26, -and that was the last time he went out. He became -so weak that he took to his plain oak bed in his plain -bedroom in the extension over the conservatory, -where he died.</p> - -<p>Dr. John P. Munn, Mr. Gould’s physician, is -probably the one man in the world who knew Mr. -Gould really well. He is about forty-five years old -and stoutly built. He wears long, black side -whiskers.</p> - -<p>There is a story that Dr. Munn’s acquaintance -with Mr. Gould was the result of accident. He had -come to this city to practice after graduating from -a medical school in the interior of the state, and -put up his sign near Mr. Gould’s house. One day -Mr. Gould was taken ill, and, his family physician -not being at home, the young Dr. Munn was called -in. His treatment was quickly efficacious, and Mr. -Gould, liking him, a few months later made him a -flattering offer to look after his physical welfare all -the time. The doctor agreed, and has not now, -therefore, a very extensive general practice. But as -compensation for that loss, he has seen many parts -of the world from the bridge of Mr. Gould’s yacht, -and by following hints dropped from the lips of the -great manipulator he has acquired a beautiful home -on West Fifty-eighth street and a handsome income -to keep it going.</p> - -<p><span class="pagenum" id="Page_192">192</span></p> - -<p>Mr. Gould had every confidence in Dr. Munn, -and liked him personally, and, by way of showing -his esteem for him, he had him made, a few years -ago, a director in the Western Union Telegraph -Company.</p> - -<div id="i_193" class="figcenter" style="max-width: 29em;"> - <img src="images/i218.jpg" width="1796" height="2557" alt="" /> - <div class="caption">FUNERAL OF JAY GOULD FROM HIS NEW YORK RESIDENCE.</div></div> - -<hr /> - -<div id="toclink_193" class="chapter"> -<p><span class="pagenum" id="Page_193">193</span></p> - -<h2 class="nobreak" id="CHAPTER_XV">CHAPTER XV.<br /> - -<span class="subhead">GOULD LAID TO REST.</span></h2> -</div> - -<p class="drop-cap"><span class="smcap1">The</span> first intention, after the death of Jay Gould, -was that the funeral services over his remains -should be as public as the limited accommodations -of the house would permit. Ex-Judge John T. Dillon, -who had been one of the legal advisers of Mr. -Gould, and Dr. Munn, Mr. Gould’s personal and -private physician, met nearly all of the members of -the family and agreed upon funeral arrangements -with that understanding. But it was soon discovered -that the probable result of a public funeral would -be a blockade of Fifth avenue, and the intention -was consequently abandoned.</p> - -<p>The funeral services were held in the mansion -where he had lived and died, at four o’clock Monday -afternoon, December 5, 1892.</p> - -<p>They were heard by his children, whom he had -loved, and by many others whom he had known -well in life, and some tears fell as they were uttered—not -so many, perhaps, as have fallen at the funerals -of other men who have attained prominence—and -on his coffin were lying flowers, placed there by -the hands of affection and of friendship, tokens of -sorrow, clearly sincere and deep, that those who -gave them would see him no more.</p> - -<p><span class="pagenum" id="Page_194">194</span></p> - -<p>Outside of the house Fifth avenue and Forty-seventh -street were crowded with inquisitive men -and women, who were grievously disappointed because -they were not allowed to enter to look at the -face of the dead and to stare at the trappings of -wealth. But the policemen who guarded the entrance -were inexorable, and there was nothing to do -but to stand on the pavement and gaze at those -who entered and at the walls and windows.</p> - -<p>In the early morning there were many callers at -the house. Most of them were from out of town, -and had come to attend the funeral services. They -were met at the door by George Gould. Those who -desired were permitted to go upstairs and look at -the face of the dead. The body was in the rear bedroom -on the second floor. It had not been disturbed -since it was first lifted from the bed where -Mr. Gould died on Friday morning. It was in a -mahogany box surrounded by flowers and covered -with a black cloth. A servant stood at the head -and lifted the cloth for each visitor. None of the -callers stayed more than a few minutes. They went -across the street to the Windsor Hotel to await the -hour for the holding of the services.</p> - -<p>About 10 o’clock Undertaker Main called with -two assistants. A moment later a wagon drove up -to the Forty-seventh street basement entrance, and -the coffin was carried into the house and up to the -room where the body was. The wagon stood there -an hour, and then the men who had gone in with -Undertaker Main carried out the mahogany case and<span class="pagenum" id="Page_195">195</span> -pushed it into the vehicle and drove away. A little -later Undertaker Main came out. He said the body -had been carried down stairs and was in the parlor, -where it would lie while the services were held. -While he was talking two wagon loads of camp -chairs arrived. One contained twelve and the other -fifteen dozen. They were carried into the house. -Even at this hour in the morning the people in the -street showed a disposition to stop, and had it -been permitted there would have been a crowd in -front of the house that would have blocked the street -from curb to curb.</p> - -<p>When it was announced that the funeral would -be public Capt. Reilly arranged to have one hundred -policemen on the spot from early morning, but the -later decision to admit only the intimate friends of -the family made the captain change his plan. Until -noon only four uniformed men were on duty. One -of these was in Forty-seventh street. Two were on -the east and one on the west side of Fifth avenue. -They pushed along any one who stopped more than -a moment. Some were indignant, and talked back -at the officers. Their talk generally resulted in a -gentle push and an order to “Come now, hurry up. -You can’t stand here.” About noon, two policemen, -Sergeant Kelly and Roundsman Bingham came, and -a few minutes later a dozen men from the Central -office in citizen’s dress. Four of them were detailed -to do service inside the house, and the others were -to mix in the small crowd that was to be permitted -to gather. They had orders to get together at the<span class="pagenum" id="Page_196">196</span> -very first word that indicated a disturbance and -squelch the offender on the spot. As a reserve force -in case anything should happen, Capt. Reilly had -twenty-five men in their rooms at the station-house -ready to march on the double quick.</p> - -<p>The first of the party who arrived at the house -to attend the funeral were three women in deep -mourning, an elderly man and two young men. -They came about noon. They were Mr. Gould’s -sisters, Mrs. Northrup and Mrs. Palen, and Mrs. -Northrup’s daughter and two sons, and Mr. Abraham -Gould, Mr. Jay Gould’s brother. They came -from Philadelphia on an early train, and went direct -to the house. The police vigilance to prevent the -gathering of any crowd was kept up until 1 o’clock, -when Capt. Reilly arrived. He said that people -might gather half a dozen deep on the west side curb -and above and below the house on the east side, -but wide passages must be kept open. Sergeant -Kelly and Roundsman Bingham were put on duty -on the steps of the Gould house. Dr. Munn talked -with them a few moments in the vestibule. He told -them they were to question everybody and were not -to let anybody pass who did not convince them of -his right to enter the house. They were also to -keep the steps clear. Five minutes after Capt. -Reilly issued his order to let the little crowd gather, -every inch of space he had allotted to them was -taken. At first it was a crowd composed exclusively -of poor people. They were poorly dressed -and many of them looked poorly fed. Curiosity<span class="pagenum" id="Page_197">197</span> -only had induced them to come. They had not -hoped to get into the house. While this crowd -stood in the street there was a hurry and bustle in -the corridor of the Windsor Hotel. The men the -poorer people came to see were forming parties. -The directors of the great railroad companies, the -Union Pacific, the Missouri Pacific, and the others, -were getting together. Frank Hain, Julien T. -Davies, and Charles A. Gardener, representing the -Manhattan Elevated railroad, were among them. -William C. Whitney had charge of one party.</p> - -<p>Once, early in the afternoon, there was what -appeared to be a concerted rush for the steps. A -number of persons who were evidently under the -impression that the public was to be admitted at 3 -o’clock made a start at that hour, and two or three -hundred others followed. Up they rushed, and, -although the policemen shouted, “Get back! You -can’t go in,” a few did make their way into the house. -They were quickly ejected, however, and thereafter -only individual efforts were made to get in. Some -of these were persisted in stubbornly, but without -success.</p> - -<p>Oddly enough, women pleaded the hardest to be -allowed to pass through the big oak door, women of -more than middle age, most of them, who could give -no better reason for wanting to see the face of the -dead railway king than that they “just wanted to see -it.” Some declared that they had come from great -distances for that purpose alone. They went away -and returned to beg again. Yet all of them admitted<span class="pagenum" id="Page_198">198</span> -finally that they had never known Mr. Gould or any -of the family. His children glanced furtively out of -the windows at the motley crowd and gave thanks -that the early intention to admit the public had been -abandoned.</p> - -<p>The throngs began to gather as early as noon, and -by 1 o’clock there were 500 or 600 persons near the -house. For some time the policemen kept them on -the west side of the street, where there was no sunshine -and where it was chilly. Yet they held their -positions.</p> - -<p>In the house during the early afternoon Undertaker -Main’s assistants were busy arranging camp -chairs in the two parlors, in the dining-room in the -rear of the house, and in the spacious hallway which -runs from the entrance to the dining-room.</p> - -<p>The body of Mr. Gould was taken from the temporary -receptacle in which it had been lying since -Friday, and placed in the oak casket covered with -black broadcloth. At 3 o’clock it was carried down -stairs and placed with head toward the east on a -standard in front of a broad mirror on the south -wall that reached from floor to ceiling.</p> - -<p>In the hallway, just back of the reception room, -to the left of the entrance and alongside the staircase, -was placed a small organ, in front of which the -choir of Dr. Paxton’s church was to stand.</p> - -<p>Dr. John P. Munn, Mr. Gould’s physician, took -up his position in the vestibule soon after 3 o’clock. -No one could enter unless he knew them or unless -they presented credentials which were not to be<span class="pagenum" id="Page_199">199</span> -questioned. Owing to the sagacity of Roundsman -Bingham of the East Fifty-first street police station -and a number of central office detectives and police -men in citizen’s dress, not a great many reached the -doctor whom he had to turn away.</p> - -<p>One gray-haired woman, by exhibiting a card, -got by the policeman and reached Dr. Munn. To -him she said, smiling agreeably, that she had no -wish to be intrusive, and then the door being open -she sought to push by him. Detective McCloskey, -of the central office, who was attending the door, -closed it, and a policeman appeared just then and -escorted the woman down to the street.</p> - -<p>Although the services were not to begin until 4 -o’clock the friends began to come before 3. After -passing the policemen at the entrance and Dr. -Munn, four detectives from police headquarters were -encountered. Detective Sergeant Heidelberg stood -in the vestibule, Detective Sergeant McCloskey in -the inner hall and Detectives Frink and Titus near -the dining-room. As the guests were admitted -they were shown through the hall to the drawing-room. -There they formed in line and passed by the -coffin slowly, so that each could get a view of the -body, and then passed into the second drawing-room -or through the latter to the hall or dining-room. -Three ushers found seats for them. None -of the family was visible. George Gould had been -down earlier in the day and had received some -callers, but he retired before the first of the funeral -guests arrived. He and the other members of the<span class="pagenum" id="Page_200">200</span> -immediate family, Abraham Gould, Mrs. Northrup -and Mrs. Palen, and their children, were gathered in -the hall of the second story, where they could hear -the music and prayers without being seen by those -below. Some remoter relatives and their friends -sat in the rear of the second drawing-room. The -dining-room was filled first, and here the directors -of the Union Pacific, the Manhattan Elevated and -the Missouri Pacific railroads and the Western -Union Telegraph Company were seated.</p> - -<p>The shades were drawn in all the rooms and the -electric lights were turned on. At 3:30 o’clock the -second drawing-room, the dining-room and the hall -were filled. Everybody sat silent during the half -hour that elapsed before the services began. The -only man who spoke at all, and he confined himself -to whispers, was Russell Sage. Except the coffin, -the object that attracted the most attention was the -oil portrait of Jay Gould, which hung against the -rear wall of the dining-room. All in that room and -many in the hall could see it, and their eyes were -turned toward it a large part of the time. It had -been painted before Mr. Gould’s illness, and looked -utterly unlike the face in the coffin. Instead of the -expression of peace and indifference which marked -the latter, there shown out from the countenance of -the portrait a look of triumph. The face of the -dead man was commonplace beside that in the gilt -frame.</p> - -<div id="i_200" class="figcenter" style="max-width: 30em;"> - <img src="images/i227.jpg" width="1892" height="2718" alt="" /> - <div class="caption">WHERE JAY GOULD RESTS.</div></div> - -<p>The hour set for the beginning of the services, -four o’clock, was indicated to those seated in the<span class="pagenum" id="Page_201">201</span> -parlors and halls and to the members of the family -who were on the second floor, first by four cheerful, -jingling strokes of a Swiss clock in the dining-room, -and then by four sonorous and vibrating sounds from -the large clock in the rear parlor.</p> - -<p>Pastor John R. Paxton walked to the reception -room and escorted the Rev. Roderick Terry, pastor -of the South Reformed church, which Mrs. Jay -Gould attended, and Chancellor MacCracken of the -University of the City of New York, to seats near the -doorway of the parlor, about half way down the hall.</p> - -<p>Dr. Paxton took his place in this doorway, facing -those in the hall. At his right, and at the head of -those who sat in the hall, were Chauncey M. Depew, -who observed the ceiling contemplatively during -the ceremony, and Collis P. Huntington, who wore -a skull cap and looked steadily and intently at the -hall carpet.</p> - -<p>The opening strains of the anthem, “There is a -Land Immortal,” were played by Organist and Musical -Director P. A. Schnecker at 4:05 p. m., and the -singing was by Mrs. Charles Herbert Clarke, soprano, -who took the place of Mme. Clementine De -Vere-Sapio, the regular choir soprano, who was indisposed; -Mrs. Carl Alves, contralto; Charles Herbert -Clarke, tenor, and Ericcson F. Bushnell, bass. -Extemporaneous prayer, in which only the Presbyterian -service differs from that of the Episcopal -church, was offered by Dr. Paxton in these words:</p> - -<div class="blockquot"> - -<p>“Oh, eloquent, just and mighty Death, whom -none couldst outwit thou takest in thy toils; whom<span class="pagenum" id="Page_202">202</span> -none could convince thou persuadeth; whom none -could overthrow thou subdueth—mighty Death!</p> - -<p>“Dire discouragement of human end, we bless God -for our Christian faith in which Jesus Christ hath -abolished death. We bless Thee that He plucked -the stain from sin, that He robbed the grave of its -victory, and that He filled the heavens with the -ministrations of our heavenly hope in this splendor, -where we hope to renew life beyond the tomb.</p> - -<p>“We bless Thee, Heavenly Father, for Thy Son -our Lord Jesus Christ, for our knowledge that the -grave is not a dungeon but a door opening into other -worlds and a new and higher life. We bless Thee -that the grave is not a terminus, the final resting place, -the be-all and end-all of man, but that it is only the -stopping place, an inn where we humble travelers -sleep the long sweet sleep on our way to the New -Jerusalem.</p> - -<p>“May the Divine Spirit be present with us in -these sad solemn services, and may the light of the -resurrection morn shine into this darkened and -bereaved house, and may comfort, that with which -God comforteth His own, touch with heavenly and -hopeful grace the hearts of our friends here, wounded -and bleeding still for the loss of him they all loved -so well. Amen.”</p> -</div> - -<p>Dr. Paxton read that part of the service beginning, -“I am the resurrection and the life,” and the -quartet sang the beautiful hymn of Cardinal Newman, -“Lead, Kindly Light, Amid the Encircling -Gloom.” Then the Rev. Mr. Terry read the second -part of the burial service, at the conclusion of which -Chancellor MacCracken offered prayer as follows:</p> - -<div class="blockquot"> - -<p>“O, Father, Thou only art perfectly wise, kind, -just, true and good. Therefore it is that our hearts<span class="pagenum" id="Page_203">203</span> -turn to Thee in this trying hour. Strengthen us now. -Quicken our hearts in faith, that we may strive to -be like Thee. Make us, as Thou hast commanded us -to be, steadfast and immovable, and always abounding -in the work of the Lord.</p> - -<p>“O Father, pity those that mourn here. Have -special compassion on the children of this home, -whom Thou hast sorely grieved. Because Thou hast -taken from the children of this family both father -and mother, do Thou comfort them, Thou Divine -Comforter. Grant unto them faith, hope and love, -Thy Divine special gifts. Grant unto these bereaved -ones the peace which this world, with all its treasures, -does not give.”</p> -</div> - -<p>“Nearer, My God, to Thee” was then sung, after -which Dr. Paxton announced that the services would -be concluded at the grave in Woodlawn cemetery -the following day by Chancellor MacCracken.</p> - -<p>He invited those present to take a look at their -departed friend, whose soul had gone to its Maker. -The line formed in the rear of the parlor and marched -slowly by the casket, the upper part of the cover of -which had been removed.</p> - -<p>Among those who attended the services were the -following:</p> - -<p>Representing the Manhattan Elevated Company—Second -Vice-President and General Manager F. -K. Hain, Secretary and Treasurer D. W. McWilliams, -Julien T. Davies and Charles A. Gardiner, the company’s -counsel.</p> - -<p>Representing the Western Union Telegraph Company—President -Norvin Green, Vice-President and -General Manager Thomas T. Eckert, Vice-Presidents<span class="pagenum" id="Page_204">204</span> -John Van Home and Robert C. Clowry, Treasurer -R. H. Rochester, and William B. Somerville, Superintendent -of the Press Service.</p> - -<p>Representing the Missouri Pacific Railroad Company—First -Vice-President and General Manager -S. H. H. Clark, Assistant General Manager George -C. Smith, Secretary and Treasurer A. H. Calef, Local -Treasurer D. S. H. Smith, General Auditor C. G. -Warner, General Attorney for Western States B. P. -Waggener, General Solicitor A. G. Cochran, and -John C. Wands.</p> - -<p>Representing the Union Pacific—Vice-President -E. F. Atkins, Director Frederick L. Ames, Secretary -Alexander Miller, Treasurer James G. Harris, and -Controller Oliver W. Mink of Boston, and Director -Joseph H. Millard of Omaha.</p> - -<p>J. B. Houston, Vice-President of the Pacific Mail -Steamship Company, and Mrs. Houston; Austin -Corbin, President of the Long Island Railroad Company -and a Western Union Director; S. W. Fordyce, -President of the St. Louis Southwestern Railway -Company; John G. Moore, a Director of the Missouri -Pacific road; Henry B. Hyde, President of the -Equitable Life Assurance Society and a Union Pacific -Director; George G. Williams, President of the -Chemical National Bank; J. Edward Simmons, -President of the Fourth National Bank; Edward H. -Perkins, Jr., President of the Importers’ and Traders’ -National Bank; A. S. Frissell, President of the Fifth -Avenue National Bank; ex-Judge John F. Dillon; -W. B. Doddridge, a Director of the St. Louis Southwestern<span class="pagenum" id="Page_205">205</span> -Railway; Washington E. Connor, Gould’s -former partner; Samuel Sloan, President of the Delaware, -Lackawanna and Western Railroad Company -and a Director of the Missouri Pacific and Western -Union companies.</p> - -<p>Chauncey M. Depew, President, and H. Walter -Webb, Third Vice-President, of the New York Central -and Hudson River Railroad; H. G. Marquand, -Collis P. Huntington, a Director of the Western -Union Telegraph Company; John Bigelow, Addison -Cammack, Henry Villard, Henry Clews, Simon -Wormser, a Director of the Manhattan Elevated -Company; Herbert H. Dickson, Mr. Gould’s personal -lawyer; J. Pierpont Morgan, a Western Union -Director; William H. Blackford, representative of -Charles F. Mayer, President of the Baltimore and -Ohio Railroad; Whitelaw Reid, John H. Inman, -William D. Bishop, of New Haven, a Western Union -Director; Jesse Seligman, Mr. and Mrs. James Seligman, -Mrs. Helman, Dr. Virgil P. Gibney and mother, -Dr. Jarrett Baldwin, Mrs. B. S. Clark, ex-Senator and -Mrs. John J. Kiernan, Judge Rufus B. Cowing, of the -Court of General Sessions; Dr. Matthew D. Field, -Sidney Dillon Ripley, William H. Kissam, J. Seaver -Page, ex-Governor Alonzo B. Cornell, a Western -Union Director; J. H. Villard, Alexander Miller, -Frank Kernan, J. M. Morgan, James Gurnie, John -D. Crimmins, J. C. Pierce, Gen. G. M. Dodge, A. S. -Hopkins, Gen. Louis Fitzgerald,. Ogden Mills, C. C. -Baldwin, F. K. Sturgis, Cornelius N. Bliss, Benjamin -Brewster, William Rockefeller, E. P. Vining, Maughan<span class="pagenum" id="Page_206">206</span> -Carter, a relative of Mrs. Gould, and Reid -Northrup and Daniel Northrup, nephews of Mr. -Gould.</p> - -<p>Every one of those who saw the face remarked -afterward upon its extreme naturalness. The beard -had been cut rather shorter than Mr. Gould wore it -in life, and that and the displacement of the swarthiness -of his complexion by the death pallor were the -only changes in his appearance. The many rare -flowers were placed surrounding the casket. The -most beautiful was a floral cross which Miss Helen -Gould had ordered. It was composed of pink -orchids tied with a silk ribbon, and was placed on -top of the coffin. Next to it was a bunch of bride -roses from Howard Gould. A five-foot broken -column of white roses, crowned by violets, with the -word “Father” in violets at the base, stood at the -head of the coffin on a table. It was from George -Gould. Miss Annie Gould sent a bunch of white -orchids, Edwin Gould a wreath of lilies of the valley, -bride roses and orchids; Frank Gould a bunch of -lilies of the valley and orchids, and George Gould’s -children an enormous pillow of orchids, roses, lilies -of the valley and violets, with the word “Grandpa” -in the center. This rested on the floor beneath the -coffin.</p> - -<p>A handsome wreath of lilies of the valley, -orchids and bride roses was received from Mrs. -Hall of 559 Fifth avenue. Mrs. Herbert sent a -bunch of lilies of the valley and roses. Gen. Thomas -Eckert sent a wreath of orchids and roses. Mrs.<span class="pagenum" id="Page_207">207</span> -Dillon Brown sent a bunch of lilies of the valley and -orchids. J. B. Houston sent a full-rigged ship made -of lilies of the valley, roses and violets, with two -flags flying and this inscription in violets: “The -Voyage Ended—Safe in Port.” The ship was placed -on a gilt cabinet in the northeast corner, and the -other pieces were disposed about the room. A large -number of persons had been expected, and arrangements -had been made accordingly. Many camp -chairs had been piled up in the hall, the second -drawing-room and the dining-room.</p> - -<p>After all the visitors had gone, the members of -the family, including Mr. Gould’s brother, Abraham, -and his sisters, Mrs. Palen and Mrs. Northrup, took -a last look at the features, and the casket was -closed.</p> - -<p>Although it grew bitterly cold in the late afternoon, -the crowd outside did not diminish while the -services were in progress. Occasionally the onlookers -crowded up to the gates so that the four uniformed -policemen had to get together and push -them back. A picturesque feature, but by no means -a pleasant one, was the presence of several unwashed, -long-haired individuals, supposedly Anarchists, raggedly -clothed and with red cotton neckerchiefs, who -stood muttering and cursing to themselves and glaring -fixedly upon the house.</p> - -<p>A wily speculator had obtained possession of -some visiting cards of Edwin Gould, and had sold -them at a premium. Many of his customers presented -these to the policemen, and they seemed<span class="pagenum" id="Page_208">208</span> -quite surprised and chagrined when they were told -they would not be recognized.</p> - -<p>One elderly woman, in a black bombazine dress, -with an old-fashioned bonnet, became extremely -indignant because she was not allowed to enter the -mansion. She said she lived “up in the state,” and -that she had traveled sixty miles especially to attend -the funeral of Jay Gould. “It is a shame,” she cried, -waving a rusty parasol and speaking to the crowd in -the street. “They’re rich enough. Why didn’t they -hire a church?”</p> - -<p>Another peculiarity about the sidewalk spectators -was that nearly all the men and boys were -either German or Russian, while the greater part of -the women were also foreigners. The crowd climbed -up the stoops of the adjoining and neighboring residences -until they were driven away by servants -with the aid of the police. Every time the great -glass doors opened at the Gould residence there was -a craning of necks and a rush for the stoop. There -was absolutely nothing to be seen except the undertaker’s -assistants.</p> - -<p>One woman told a little circle around her that -she had seen the casket, and seemed very proud of -her achievement and the distinction which it conferred -upon her in the eyes of her auditors.</p> - -<p>During all this time Fifth avenue was crowded -with handsome equipages of all kinds going to and -from the park. Among those who drove by were -John Jacob Astor and his wife in a stylish drag. -Neither the Anarchists nor the other spectators<span class="pagenum" id="Page_209">209</span> -recognized them, or there might have been, judging -from the character of the crowd, some unpleasant -demonstration. The police, however, were -very alert, and kept a watchful eye upon every -movement of the crowd.</p> - -<p>The majority of the men who attended the funeral -walked to and from the house. When the -services were over and the doors were opened, the -first to step out were H. Walter Webb and Chauncey -M. Depew. Mr. Depew was, of course, recognized, -but Whitelaw Reid, who followed him, was not. -As the guests came out of the house the police still -had some difficulty in keeping the crowd back. A -number of women fell into line, expecting that they -would be admitted to the house as soon as the invited -guests had departed. Finding that this was -not the case, they lingered for a few minutes and -then slowly went their way. In fifteen minutes the -crowd disappeared entirely, and the avenue resumed -its normal appearance.</p> - -<p>The following morning the remains of Jay Gould -were placed beside those of his wife in the mausoleum -in Woodlawn cemetery. They were placed -in a catacomb at just half past twelve. Barring the -irreverent chatter of the idle onlookers, nearly all of -whom were women, no words were uttered except -by Chancellor MacCracken. A crowd gathered in -front of the Gould residence early this morning. -Two policemen kept them back, and they stood -around and looked angry. At 9:30 the flowers were -taken to the cemetery. Soon after 10 o’clock the<span class="pagenum" id="Page_210">210</span> -hearse and eight carriages appeared. It was an -extremely plain hearse and the carriages, except -George Gould’s smart brougham, were of the ordinary -four-wheeled funeral variety. The immediate -members of the family entered them and Undertaker -Main, alone in a carriage, led the way up Fifth avenue -to the cemetery. After the brief services were over -the mourners departed.</p> - -<p>The mausoleum in Woodlawn cemetery in which -the dead multi-millionaire is resting is more magnificent -and costly than the homes of many people -whose money paid for it. The station on the New -York and Harlem river railroad is near the northeast -corner of the cemetery. Central avenue goes -by the office of the superintendent and winds -through the snowy slopes for about half a mile. -About fifty feet from this avenue rises a mound -crowned by a tiny Greek temple. That is Jay -Gould’s tomb.</p> - -<p>The plot of ground is circular and contains 30,000 -square feet. The price of ground in such a select -location is $2 per square foot, so the space alone -cost $60,000.</p> - -<p>Before the work began Mr. Gould made three -stipulations about the construction of the mausoleum. -First, that it should be built as strongly and as massively -as possible; second, that it should not be pretentiously -large; third, that as great simplicity as -possible in the construction should be observed. -Upon this last point Mr. Gould laid the greatest -stress.</p> - -<p><span class="pagenum" id="Page_211">211</span></p> - -<p>The mausoleum is built throughout of westerly -granite. It is thirty-three feet long, twenty-two feet -wide and twenty feet high to the apex of the roof. -It is often said to be a copy of the Parthenon, but that -is not true. The Parthenon was a Doric structure; this -is Ionic. The technical name of the building would -be a Greek hexastyle, peripteral temple. It has six -columns in front and eleven columns on each side -in single rows. In its proportions and many of its -details it is more like the old temple of Theseus, at -Athens, than any ancient building extant.</p> - -<p>Three rows of steps run up to the temple on all -sides and form its base. Between the columns and -the walls of the temple is a considerable space. -Columns and walls are bare, without the faintest -attempt at ornamentation.</p> - -<p>In the center of the row of columns facing the -south it looks as if a column had been removed to -make a broad passageway. Facing this opening is -the double door of the tomb. Each section of this -door is eight feet high and two feet wide, and weighs -a ton. The doors are of heavy bronze, and the -lower part is paneled and ornamented on the outside -with two dragons’ heads, a big iron ring swinging -in the mouth of each dragon. The upper part -of the doors is a fretwork of cherubs and vines, -through the opening of which the interior of the -crypt can be seen.</p> - -<p>Peering through the interstices one may see the -narrow hall lined with polished Tennessee marbles. -The pavement is of tesselated marble in three shades,<span class="pagenum" id="Page_212">212</span> -a creamy yellow, a pale pink and a pale violet. The -body of the floor is in the pale violet, with two -brands of the pink and yellow crossing it.</p> - -<p>The interior is 20 feet long, 7 feet wide and 13 -feet high. Its roof is a solid slab of granite, which -weighs six tons. The border of the ceiling is paneled -with egg and dart moulding. The floor is one plain -marble slab. Along the sides of the interior are the -catacombs. Of these there are twenty, ten on each -side, in double rows. The rows are separated from -each other by granite slabs. Each catacomb is 7½ -feet long and 2½ feet wide. Between the lower end -of the catacombs and the outside of the wall of the -tomb is a thickness of 18 inches. The outer part of -this thickness is, of course, granite, but facing the -interior the walls are of light pink and cream-colored -Tennessee marble, highly polished. The light -enters the crypt through a stained glass window in -the back. This window, which is 6 feet high and 3 -feet wide, pictures a choir of angels.</p> - -<p>The roof of the mausoleum consists of granite -slabs 32 feet long, each weighing 15 tons, and so -placed together that they overlap, making the roof -waterproof. The whole temple weighs about 300 -tons, and rests on a solid concrete foundation 8 feet -thick.</p> - -<p>The second rear catacomb from the bottom, on -the left-hand side entering the tomb, is that of Mrs. -Gould, who died January 13, 1889, and was interred -January 16th. The letters “Emily Day Miller, wife of -Jay Gould,” with the dates of her birth and death,<span class="pagenum" id="Page_213">213</span> -are in high relief on the polished slab. Mrs. Gould’s -body is the only one in the mausoleum.</p> - -<p>The tomb was completed in 1883, and cost $50,000. -Land and all it cost $110,000.</p> - -<hr /> - -<div id="toclink_214" class="chapter"> -<p><span class="pagenum" id="Page_214">214</span></p> - -<h2 class="nobreak" id="CHAPTER_XVI">CHAPTER XVI.<br /> - -<span class="subhead">PERSONAL CHARACTERISTICS OF JAY GOULD.</span></h2> -</div> - -<p class="drop-cap"><span class="smcap1">Much</span> of the interest in the life and career of -Mr. Gould is in regard to his personal characteristics -and qualifications, and much that is to be -learned from his life is to be gained from the study -of the same circumstances. The varying opinions -regarding him are perhaps more widely different -than those concerning any other great financier. -As has been said, there are those who see in him all -that was ideal in the character of a powerful money -monarch. There are more whose criticisms can not -be made too scathing, whose denunciations can not -be made too strong. In an impartial history, all -such opinions must be represented.</p> - -<p>It is a relief to turn from the record of Gould’s -public career to the contemplation of his private -life. As has already been said, in all his domestic -relations Gould was a model man. He had no -habits but that of hard work and home enjoyments. -He did not use tobacco in any form. He rarely, if -ever, sipped a glass of wine. Social scandal never -attached to his name. He loved his home. When -not in his office he was with his family. He owned -a box at the opera, but when he attended his family -always accompanied him. He belonged to no social<span class="pagenum" id="Page_215">215</span> -clubs. He did not add the excitement of the turf -to the excitement of the Stock Exchange. On his -return from a journey his first questions were of the -welfare of his family. He made his home as beautiful -as wealth, refinement and purity could make it. -He loved his children, the sweet discourse of the -fireside and the companionship of books and flowers. -There was no attempt at display, but everything he -possessed was the best. Neither he nor his wife -had any ambition for society distinction. They -gave no great balls and rarely were they present at -“society events.” They had none of the vulgar -traits of the parvenu or prejudices of the aristocrat. -When his son wished to marry an actress Mr. Gould -interposed no objection, and even approved the -choice, declaring his pleasure that his son had selected -a respectable woman who was able to earn her -own living. Perhaps his devotion to his family was -due in part to the fact that his public career placed -him apart from other men and made him an object -of fear and hatred. He was an exile from the -sympathies of his fellowmen. But he uttered no -complaint, and found in his family full solace for -any loss of friendships he may have incurred. The -members of his family were his only intimate -friends.</p> - -<p>Mr. Gould was never a robust person. He was -below medium height, thin, nervous and reticent. -His hair, beard and eyes were jet black. He was -fastidious in dress, and never approached the -gaucheries that marked and marred his lieutenant,<span class="pagenum" id="Page_216">216</span> -Fisk. Gould was all brain and nerve, Fisk all drive -and muscle. Although quiet, imperturbable and -indisposed to confidences, Mr. Gould’s expression -was by no means unpleasant. On the contrary he -was, in a sense, companionable. He was extremely -fond of home comforts and never permitted business -to interfere with his two o’clock dinner or his -afternoon drive. In manner he was kind and gentle. -Never averse to give an opinion, unless it interfered -with a plan, he was careful not to obtrude one. He -was not accessible to strangers for obvious reasons, -but his family and friends testify to the unvarying -courtesy of his manner and the rare beauty of his -temper. He was always more or less troubled with -sleeplessness and often paced the floor, tearing letters -or papers to bits, as he thought out schemes -for making money. Making money was his passion. -He was not ostentatious in living and spent comparatively -little. He rarely put his name on subscription -papers and, justly or not, he did not enjoy the -reputation of liberality. He was often seen in the -park with his wife, his son or driver, and invariably -looked straight ahead. He ate moderately and never -drank wine save at dinner. Now and then he -attended the opera, and in the days of Sweeny and -Tweed would occasionally join them in the recesses -of a private box. Mr. Gould was not exactly a -selfish man. He was too intelligent to hate and too -unsympathetic to love very strongly. He produced -the impression of extreme intellectuality; indeed,<span class="pagenum" id="Page_217">217</span> -leaving out the affectionate element, he was feminine -in nature, with marked intuitive perceptions.</p> - -<p>Slight of stature and frame, and feeble in body, -with a high-strung, nervous organization, a rebellious -stomach and flesh-plagued with the neuralgia—such -was Mr. Gould as he appeared in the later years of his -life. His deceit and far-reaching were the result, -largely, of his frailty and timidity. In appearance -what a meek, mild-looking man he was! Strangers -to whom he was pointed out would exclaim: -“What, that Jay Gould! Well, I never would have -thought it.” About five feet six inches in height -and of slender figure, he was not an imposing personage. -His complexion was swarthy, his eyes -dark and piercing; his closely-trimmed whiskers -black and streaked with gray; his forehead dome-shaped -and his hair rather thin—such was Jay Gould. -His voice was very low and mild. When a witness -in courts and before committees, as he frequently -was, it was with the greatest difficulty that he could -be heard. But when once in close contact with him one -soon came under the spell of his intellect. His comprehension -was wide, his intuition wonderful, his judgment -almost unerring. He was a close student when -once he took up a subject. He never ceased until -he had thoroughly mastered it in every detail. This -was the secret of his success. Henry Ward Beecher -once defined genius as the power and willingness to -work long and hard, and under this definition Mr. -Gould was a man of genius. Though not by any -means wholly bad, he was a dangerous man. His<span class="pagenum" id="Page_218">218</span> -life was a menace to his country. His successes -were demoralizing to the young. He looked like a -premium on dishonesty, a reversal of the old adage -that “honesty is the best policy.”</p> - -<p>No just estimate of Mr. Gould can be formed without -taking into consideration the fact that he lived in a -time and country in which corruption in politics and -business was widespread. The great mass of the people -were honest, but municipal government was the -most corrupt ever known. Bribery walked the streets -of the national and state capitals, and “jobs” were -behind nearly every public undertaking. It was a -period, on the one hand, of glorious achievement and -extraordinary development, and, on the other hand, -of venality, deceit and dishonesty. The besetting -temptation of the times was the desire to get rich—enormously -rich—suddenly. Mr. Gould may be -said to have been little if any worse than most of his -contemporaries in business. His triumphs were, for -the most part, over men who would have ruined him -if he had not ruined them.</p> - -<p>In regard to himself, he once said when told that -he was the most unpopular man in the United States:</p> - -<p>“I never notice what is said about me. I am -credited with things I have never done and abused -for them. It would be idle to attempt to contradict -newspaper talk and street rumors. As to enemies, -any man in my position is likely to have them. -With me the bitterest enemies have always proved -to be men to whom I had rendered services. As a -general thing, I do my best to be on good terms<span class="pagenum" id="Page_219">219</span> -with everybody I come in contact with. I am not -of a quarrelsome disposition. But, on the other -hand, I have the disadvantage of not being sociable. -Wall street men are fond of company and sport. -A man makes $100,000 there and immediately buys -a yacht, begins to drive fast horses, and becomes a -sport generally. My tastes lie in a different direction. -When business hours are over I go home and -spend the remainder of the day with my wife, my -children, and the books of my library. Every man -has natural inclinations of his own. Mine are -domestic. They are not calculated to make me particularly -popular in Wall street, and I cannot help -that.”</p> - -<p>The day after his death, his friends had only one -word to say as to the qualities in the dead man -which commanded a tribute from them—his ability, -his foresight, his wonderful patience in the working -out of his aims, his fidelity to friends, his good faith -with his business associates and his generosity to -subordinate workers. Mr. Morosini, speaking of -his dead friend and former employer, with whom -he had been associated for a longer period, and perhaps -more continuously and in some respects more -intimately, than any other man in New York, said:</p> - -<p>“Mr. Gould was one of the most lovable men I -ever knew. It was a pleasure to serve him. He -was very appreciative, and never imposed a needless -task upon any one. In the office he always took things -easily and coolly. There was never any hurry or -confusion. In his family he was the best of husbands,<span class="pagenum" id="Page_220">220</span> -and I never knew a man who loved his children -with such intensity as he did. He seemed to -worship them all. He was a very companionable -man, and there was a great deal of humor in his disposition. -While he was not given to telling stories -or cracking jokes himself, he enjoyed hearing others -do so and would laugh as heartily as the rest. He -was very abstemious in his habits, but was exceptionally -fond of coffee. Now and then he would -sip a little wine, but he rarely took more than a -spoonful at any time. My opinion is that his system -gave way under the great strain resulting from -the consciousness of his immense wealth. It was a -tremendous care, and he was always weighed down -with the anxiety and excitement of protecting his -properties.</p> - -<p>“Mr. Gould was the most generous of men, and -he made a great many other men rich by his own -generosity. I could give you hundreds of instances -where in return for some slight service to him he has -started men in the way of making fortunes. There -is one which just comes to mind while I am talking -which is a good illustration. Once there was a man -out West who did some little work for Mr. Gould in -a railroad matter there. The man was of the ordinary -type of a Westerner on the frontier. Mr. Gould -said to me: ‘I ought to do something for him; what -would you suggest?’ I replied, ‘Buy him a thousand -shares of stock for a rise.’ He said, ‘All right,’ and -ordered the purchase of 1,000 shares of Denver and -Rio Grande. The stock was then about 29. We<span class="pagenum" id="Page_221">221</span> -carried it along until it reached a very high point -and looked like going off, and then we sold it. The -profit was $65,000 and I paid that money, all of it, -sixty-five bills of $1,000 each, to that man myself. -Mr. Gould had ordered that transaction for that particular -purpose. He took none of the profit himself, -but directed that the man should have it all.</p> - -<p>“There were many instances,” continued Mr. -Morosini, “of just that sort, and many in which -he greatly helped men there in Wall street from -going down—men whom he was under no obligation -to help, but he assisted them under an impulse of -generosity.”</p> - -<p>In regard to Mr. Gould’s business methods, Mr. -Morosini said: “Of course, he was very reserved. -He never let the left hand know what the right hand -did. His motto was never to say ‘cat’ until you had -him in the bag. For instance, he asked me one day -to call in about $8,000,000—which we had loaned -out. I followed his instructions; the money was -collected; he said nothing to anybody about why he -had called it in. I kept the money for nearly a -month, when one day he told me that I might loan it -out again, as he had no more use for it; that he -had intended it for use in buying the Reading road, -but the deal had fallen through and therefore it -might as well be drawing interest. That was the -first I knew of what he had in contemplation when -he called the money in. Then again, when he -bought the Missouri Pacific, his negotiations with -Commodore Garrison were carried on for three<span class="pagenum" id="Page_222">222</span> -months, and it was only when he asked me to draw -checks and told me to whom they should be drawn -that the whole thing came out.”</p> - -<p>Continuing, Mr. Morosini said: “Mr. Gould could -enjoy immensely anything funny or ludicrous. We -used to have a small window in the office through -which I would talk to some of the unimportant -callers, and through which Mr. Gould would also -talk to people whom it was not necessary to bring -into the inner room. One day a man came to the -window and said, ‘I want to see Mr. Gould.’ I told -him he could not see Mr. Gould unless he told me -what he wanted. He replied, ‘I have an invention -here, and there’s millions to be made out of it.’ Mr. -Gould was in the next room, and he said, ‘Morosini, -what is it the man wants?’ and I told him, whereupon -he got up and came to the window to talk to the -man.</p> - -<p>“When Mr. Gould appeared, the man put his hand -under his coat as if to pull something out. I saw it -glisten, and thinking it was a blunderbuss, I dodged -down under the counter, and Mr. Gould seeing me -go down dropped down also. ‘Shoot high, you son -of a gun,’ I yelled out. Then the man laughed and -said there was nothing to fear, and began to explain -the nature of his invention. We got up and looked -at it, and what do you think it was? He had a sort -of a brass cylinder, and he said it was a patent portable -churn. It was to be filled with cream in the -morning when a man was starting away from home, -and slung by a strap over his shoulder under his coat.<span class="pagenum" id="Page_223">223</span> -The motion of the body while walking would keep -the cream stirring, and then besides there was a sort -of piston with a handle on the top. Every now and -then you were to give that a jerk, so that by the time -the man reached home at night he could turn out -on a plate for his wife a pound or two of fresh butter.</p> - -<p>“I said to the man when he had explained what -the thing was, ‘I will give you thirty days in the -penitentiary,’ and you ought to see him get out. It -would have done you good to see Mr. Gould laugh -over our dropping down behind that counter at the -sight of that portable churn.”</p> - -<p>Mr. Morosini illustrated Mr. Gould’s peculiar tactics -in operations in some particular stock in the -Exchange with another anecdote. Said he:</p> - -<p>“At one time Mr. Gould was short on Pacific Mail, -and he bought and sold, bought and sold, bought -and sold until the commissions paid brokers amounted -to about $36,000. Then the account was finally -made up and showed to the credit of Mr. Gould on -the entire transaction the sum of fourteen cents. A -rumor was in circulation that Mr. Gould had made -a great deal of money in the stock. One afternoon, -just about that time, I was at Mr. Gould’s house -when William H. Vanderbilt called to see him about -some matter of business. He congratulated Mr. -Gould on having made so much money on the stock. -Mr. Gould turned to me and said, ‘Morosini, how -much have we made on that deal in Pacific Mail?’</p> - -<p>“I answered, ‘$140,000.’</p> - -<p>“‘What,’ he exclaimed, and looked at me in a<span class="pagenum" id="Page_224">224</span> -queer way. After Mr. Vanderbilt had gone Mr. -Gould said, ‘When I asked you what we had made -on that Pacific Mail transaction why did you say we -had made $140,000?’ I answered, ‘Did we want to -disgrace ourselves by saying fourteen cents? Why -not let them know that we can make money as well -as they can?’ Mr. Gould was very much amused.”</p> - -<p>Those men who of late have been most intimately -associated in business with Mr. Gould, and those -directly connected with the business enterprises of -which he was the commanding power, invariably -speak of him in the highest terms. The directors of -the Manhattan Elevated Railway, the Western -Union Telegraph Company, the Missouri Pacific -System, and other great corporations in which Mr. -Gould’s holdings of stock were the controlling interests, -have been lavish in the compliments and admiration -which they express.</p> - -<p>Newspapers throughout the country, in their -editorials, seem to have made every effort to be -kind, even while expressing, most of them, detestation -for Mr. Gould’s methods. In the public press, -however, he has had few compliments except for -his shrewdness and his family life, while criticisms -have been very severe on all of the prominent -features of his career.</p> - -<p>A great number of clergymen, too, have taken -occasion to preach sermons on the death of Mr. -Gould, some of them very bitter in their denunciation -of him. A few have been charitable enough to -object entirely to the fact that he made little application<span class="pagenum" id="Page_225">225</span> -of his wealth toward benevolences, and have -said little about his methods of acquiring it.</p> - -<p>It is true, however, that the weight of the consensus -of opinion has been that Jay Gould’s life was -that of a wrecker of fortunes and of honor, that the -good that he is done falls far short of balancing the -account, and that his loss will be felt less by the -world at large than would that of any other man of -equal prominence.</p> - -<hr /> - -<div id="toclink_226" class="chapter"> -<p><span class="pagenum" id="Page_226">226</span></p> - -<h2 class="nobreak" id="CHAPTER_XVII">CHAPTER XVII.<br /> - -<span class="subhead">THE FAMILY OF GOULD.</span></h2> -</div> - -<p class="drop-cap"><span class="smcap1">Jay</span> Gould had no social ambition whatever. -He was the most domestic of men, and his affection -and attention to his own immediate family was -so deep as to apparently leave no place for outside -social influences.</p> - -<p>Mr. Gould was greatly stricken by the death of -his wife, which occurred January 13, 1889, after a long -and painful illness. When she died there were -present besides her husband and Mr. and Mrs. -George Gould, her sons, Howard and Edwin; her -daughters, Helen and Anna, and her sisters, Mrs. -Harris, Mrs. Noyes and Mrs. Dickinson. Mrs. Gould -was practically unknown in society, for the reason -that she seldom cared to go into the fashionable -world. Her home was world enough for her, and -she made it a happy one. She was the idol of her -children. Many stories are told of the private -charities of this modest woman.</p> - -<div id="i_226" class="figcenter" style="max-width: 28em;"> - <img src="images/i255.jpg" width="1742" height="2587" alt="" /> - <div class="caption">A FAMILY GROUP.</div></div> - -<p>It was in the winter of 1862 that Jay Gould married -Miss Helen D. Miller, the daughter of Daniel G.<span class="pagenum" id="Page_227">227</span> -Miller, of the produce and grocery firm of Lee, Dater -& Miller. Miss Miller was then twenty-three years old -and lived with her parents at 33 East Seventeenth -street, now the site of the <i>Century</i> building. The house -was one of those old-time mansions, few of which still -exist in New York. In this house they lived for several -years and here, on February 6, 1864, the first child, -George Jay Gould, was born. Here also, Edwin, the -second, was born two years later. Helen Gould, the -oldest daughter, was born in 1870. Howard was -born a year later. Their other children are Anna, -who is now fifteen, and Frank, who is still a young -boy.</p> - -<p>George Jay Gould, the eldest son, instead of going -to college went into business with his father, and -has himself amassed a considerable fortune. He -lived with his father until his marriage to Miss Edith -Kingdon, once a member of the company at Daly’s -theater, which took place several years ago. He -has three children, two boys, Kingdon and Jay, and -one little girl. After his marriage George bought -the house, No. 1 East Forty-seventh street, adjoining -the rear of his father’s home, from Amos Lawrence -Hopkins. A passageway was built connecting the -house with the Fifth avenue mansion. George Jay -Gould lived there until about a month ago, when he -moved to the house which he purchased from Jacob -H. Schiff, at Fifth avenue and Sixty-seventh street. -Edwin Gould then moved into the Forty-seventh -street house. He is twenty-six years old and a -graduate of Columbia college in the class of ’88.</p> - -<p><span class="pagenum" id="Page_228">228</span></p> - -<p>Edwin Gould, the second son, was married October -27, 1892, to Miss Sarah Cantine Shrady, step-daughter -of Dr. George F. Shrady, of No. 8 East -Sixty-sixth street. The ceremony was performed by -the Rev. Robert Collyer, at the house of the bride’s -father. The presents received by the young couple -were very costly and numerous. Mr. Gould sent -besides the diamond pendant which the bride wore -at the ceremony, 200 pieces of silver in a fine oak -chest. After a short wedding trip Mr. and Mrs. -Gould took up their residence at No. 1 East Forty-seventh -street.</p> - -<p>Edwin, though not so widely known as his -brother, has an active interest in many of his father’s -enterprises. He is a director of the Western Union -Telegraph Company and of the Manhattan Elevated -railroad. He is very fond of athletic sports, and -belongs to the New York Athletic Club. He has -been a member of Troop A, but resigned when he -was appointed Inspector of Rifle Practice.</p> - -<p>Miss Helen Miller Gould is about twenty-three -years old. She is an active church-worker and a -member of Dr. Paxton’s church. To her interest -in missionary work has often been attributed the -minister’s meeting at Mr. Gould’s house and the -millionaire’s gift of $10,000 for missions. Howard -Gould is twenty-one years old, Anna is a schoolgirl, -and the youngest, Frank, is thirteen years old.</p> - -<p>About a year ago cards were sent out by Mr. Jay -Gould, which read simply:</p> - -<p><span class="pagenum" id="Page_229">229</span></p> - -<div class="dotbox"> -<p class="center"> -<span class="smcap">Mr. Jay Gould</span><br /> -and<br /> -<span class="smcap">Miss Gould</span><br /> -At Home<br /> -Saturday, Dec. 26, from 3 until 7. -</p> -</div> - -<p>As many as 3,000 of these were sent out, and -every person in the social set was asked. This was -nothing very unusual, as general invitations are frequently -extended by people of personal prominence -in this way. During the first couple of hours of the -“at home” there were but few callers at the Gould -house, but later they came in a steady stream.</p> - -<p>The mothers of marriageable youths were very -kindly disposed toward Miss Gould. Whether she -was to achieve a social success has never yet been -determined, for almost immediately after the coming -out reception she left town with her father, who -went away for his health. Social leaders say that -with his great wealth Mr. Gould might easily have -arranged for his daughter’s marriage to a man of -great social rank. But Mr. Gould didn’t care to encourage -the quest for his daughter’s hand on the -part of men of great social rank. This was evidenced -by the hearty consent he gave to the recent -marriage of his son Edwin to Miss Shrady, the -adopted daughter of Dr. Shrady.</p> - -<p>When George J. Gould married Edith Kingdon, -the actress, it was said there was opposition to it on -the part of Mr. and Mrs. Gould, but if such was the -case it never developed into anything definite. In<span class="pagenum" id="Page_230">230</span> -fact the Goulds made much of their daughter-in-law -when they came to know her. When Jay Gould -became a grandfather he manifested the greatest -interest in the children of his son. There are three -of them at the present time.</p> - -<p>Edwin Gould, the second son, takes after his -father more than the other children in the matter of -characteristics. He took a course at Columbia and -rowed in the freshmen crew. As to how the elder -Gould regarded the two boys, George and Edwin, -an old financier, who knew Gould intimately, said:</p> - -<p>“Either Jay Gould loves his sons George and -Edwin to the point of indiscretion, or he has weighed -them up in his keen way and thinks there’s a lot of -sand in them.”</p> - -<p>Mr. and Mrs. Gould were a couple happily married -in the fullest sense of the term. Mr. Gould -was exceedingly domestic in his tastes. He never -cared much about going into society. His wife -died some years ago.</p> - -<p>Mrs. Gould had been fond of society, but gradually -gave it up.</p> - -<p>The pleasures of Jay Gould’s life were simple and -few. With vast wealth at his command, he seldom -sought recreation away from his immediate home. -To a certain extent money-getting seemed to be a -pleasure to him. In the many deals engineered by -his master hand he felt the thrill of a nervy gambler -who stakes his money on the turn of a card. It was -not making money that worried him. It was keeping -what he made and holding his own in the thousand<span class="pagenum" id="Page_231">231</span> -and one schemes concocted to get the better of -him.</p> - -<p>His life was a continual game of chance, and in this -game for many years he found his chief enjoyment -in existence. It is not recorded that in the earlier -years of his career Mr. Gould ever sought any physical -relaxation in the way of sport or pastime. His -whole mind, heart and soul lay between Wall street -and his uptown home. Finally, however, money-making -became an old story. Time and again he -had milked Wall street dry, and his fortune had -rolled up into the tens of millions. Then, observing -an occasional smile on the faces of other millionaires, -and hearing the laughter of light hearts all about -him, he began to wonder if there were not other -pleasures in the world outside of cent per cent. and -the dull, eternal rows of figures that stood for stocks -and bonds.</p> - -<p>So one day he turned his back on the dingy -office that represented his paradise and took a New -York Central train for Irvington. Here he met Mr. -Merritt, and was driven to the residence of the latter, -a mile or so north of the old river town and -close to the shore. Mr. Gould was very quiet and -very reserved, but his keen eye took in all the possibilities -of the place at a glance. When he returned -to New York on the evening train he had closed a -bargain with Mr. Merritt, by which the estate -became his for a consideration of a quarter of a million -of dollars.</p> - -<p>A small army of builders and decorators and<span class="pagenum" id="Page_232">232</span> -glaziers was employed, and out of the general chaos -of bush and bramble arose the minarets of a modern -palace, with wide, well-ordered grounds and every -comfort one could wish for. Mr. Gould seemed to -take great pleasure in planning the arrangements -for his future country residence. For awhile all but -the general detail of his business was put in the -background. Every few days he would journey up -to Irvington to see how matters were progressing. -It may be safely said that these were the first leisure -days of Mr. Gould’s life. His eyes grew brighter, -his step more buoyant, and he began to look upon -these little excursions as a pleasant diversion.</p> - -<p>Sometimes he would take his younger children -with him, and their unaffected happiness was -another source of relaxation for the care-worn millionaire. -Previous to this time money-making had -been Mr. Gould’s exclusive thought. Thereafter it -became to a certain degree intermittent.</p> - -<p>Mr. Gould’s house on the Hudson, above Irvington, -was called Lyndhurst. It is a stone structure -of Elizabethan architecture, situated on a high green -bluff overlooking the river and surrounded with a -well-kept park. The entrance to the park is about -a mile from Irvington, and is marked by two tall -granite posts. A stone porter’s lodge is by the gate. -Passing into the grounds one sees on every side the -marks of the gardener’s care and the skill of the -landscape gardener. There are not too many trees, -only enough, and they are so grouped that while -they make the house at the end of the driveway<span class="pagenum" id="Page_233">233</span> -seem retired, they yet afford vistas through which -glimpses can be caught of the stone towers and -gables of the mansion.</p> - -<p>Beyond the limits of the park lie fruitful and -well-cultivated farmlands and orchards belonging to -the Gould estate. One opening among the trees -shows a gray tower and slender minarets. These -mark the dog kennels. The driveway is broad and -smooth, and winds over the undulating surface of -the park toward the house. Some of the trees -through which it runs are old oaks which have not -been interfered with in the general plan of the -grounds, but have been brought into stranger effect -by the arrangement of the newer trees and the -shrubbery. The road descends a little before it -reaches the house and passes through a grove of -evergreens. As one comes out of the dark grove, -the beautiful house bursts at once on the sight of -the visitor. Trim lawns surround it and beyond it -the view is closed by the broad Hudson and the -palisades beyond.</p> - -<p>The central tower of the house rises high, bearing -turrets at each of its four corners. The house is -built of greystone, which is shot with bluish tints. -It covers a large area and its many parts are -grouped together so as to give an appearance which -is at once beautiful and imposing. There are multitudes -of graceful angles, mullioned windows, turrets -and spires, all in harmony, and forming a picture -delightful to look upon. Here and there are -verandas with great windows opening upon them,<span class="pagenum" id="Page_234">234</span> -and now and then a stone balcony high up. The -great double doors of the main entrance are of stone -even to the sashes of the diamond-paned windows at -their top.</p> - -<p>Inside the house there is a great hall in the center. -On the right from the main entrance is the -dining-room and on the left a large drawing-room. -Everywhere are works of art, statuary and paintings. -The house has a multitude of rooms in it and is built -on a generous plan throughout. It is an ideal country -home. Every window commands a beautiful -view, but those on the west front have the finest. -The Hudson can be seen for miles to the south and -north. The palisades are seen in a magnificent -sweep across the river, and the town of Nyack looks -like a toy city on the further shore of the river. To -the north are the mountains of the Highlands. The -lawn at the west of the house slopes down to the -edge of the bluff. Then there is a steep descent to -the railroad track, which is hidden from view by -thickly planted trees and shrubs growing on the -declivity. A path leads down to a bridge over the -track and a short distance on the other side brings -one to the little wharf and boathouse. It was off -this wharf that the Atalanta used to lie when Mr. -Gould was at Lyndhurst.</p> - -<p>The library in the house contains a splendid collection -of books, which Mr. Gould bought from a -man who had spent many years and much money in -collecting them in all the markets of the world.</p> - -<p>He erected a short distance away one of the<span class="pagenum" id="Page_235">235</span> -largest and most handsomely equipped conservatories -in the country. It covers nearly four acres, -and from a distance looks like the fabled palace of -Kubla Khan. Here there was another source of -pleasure for the weary financier. He employed Ferdinand -Mangold, Mr. Merritt’s former gardener, to -take charge of the conservatory, and gave him carte -blanche to procure the rarest flowers and exotics -from all over the world. Mangold performed his -work well. When the leaves grew yellow around -Lyndhurst the autumn following the conservatory -contained the finest palm garden on the Western -hemisphere.</p> - -<p>There are over 250 varieties, from the size of a -maidenhair fern to great shadowy trees, thirty feet -high and with leaves as wide as the jib of a pilot -boat. They range in value from $20 to $500; but -what is money to a millionaire in pursuit of the butterfly -of pleasure. These palms were brought from -Africa, Central and South America, Samoa, the Sandwich -Islands, the heart of India and from beyond -Trebizonde, for the simple purpose of wooing Mr. -Gould’s pale face into a smile. There were <i>Viridifolium</i>, -<i>Hyophorbe Americanlis</i> and <i>Plectocomia Assamica</i> -palms without number, and Mr. Gould knew -every one of them by name.</p> - -<p>In another apartment was a wilderness of roses, -pink and white, and gold and Guelder, Burgundy and -Austrian in an endless tangle of color and a delirious, -odorous atmosphere that would have enraptured the -soul of a lotus eater. No wonder that Mr. Gould<span class="pagenum" id="Page_236">236</span> -abandoned care when he entered the portals of his -conservatory. He did not have many warm personal -friends, yet surely a man can not be altogether bad -who is a friend of the roses. There must be some -good in the heart of a man whose eyes grow tender -as he bends over a lily.</p> - -<p>The conservatory became a hobby with Mr. -Gould. Every morning after breakfast he would pay -a visit to the big glass house to wander for an hour -or so among the plants and flowers. While there he -would seem to forget everything but the green, tropical -tangle about him. In the evening, on his return -from the city, he would again stroll through the -shadowy aisles of palm and vine, sometimes alone -and at others accompanied by the members of his -family.</p> - -<p>Orchids were Mr. Gould’s especial hobby. In -this department of his conservatory he had nearly -8,000 orchid plants and over 150 varieties. For -some of these delicate, air-fed and angel-painted -blossoms Mr. Gould had paid $300—half the amount -of a poor man’s wages for a year of toil. In another -apartment were nearly 2,000 azaleas, little bits of sunset -sky cut into the shape of bells. In the fernery -were 600 varieties of ferns, giving the entire place -the appearance of a soft green cloud hemmed in -glass walls. Just the place for Titania and her fairies.</p> - -<p>It is strange that this appreciation of pure and -poetical things should exist in the soul of a man of -such financial grimness. But it was doubtless in<span class="pagenum" id="Page_237">237</span> -Mr. Gould’s nature before his life took on its acquired -thirst for gold. When that thirst was in a -measure satiated he turned again to his fundamental -instincts and his great conservatory was the result.</p> - -<p>Yet in the summer months Mr. Gould found -much pleasure in his open-air garden. It was a big -affair, guiltless of weeds, yet it is doubtful if Mr. -Gould ever weeded his own potato patch or hoed -his own turnips. There were beds for cantaloupes -and watermelon, cucumbers, peas, beans, parsley, -spinach, carrots, beets, lettuce and cauliflower, and -Mr. Gould knew just where to find everything. -For a short time every day he would walk through -the garden, and doubtless dream of his old barefoot, -boyhood days when he looked after his mother’s -garden in Delaware county. He was a sort of intermittent -farmer and seemed to find a transitory -pleasure in everything that pertained to a farm. -There was nothing in common, however, between -Mr. Gould’s luxurious style of farming and that of -the everyday horny-handed knight of the pitchfork -and plow.</p> - -<p>His barnyards and meadows, situated some distance -from the conservatory, contained innumerable -blooded stock. There were 50 cows, 25 horses, a -span of oxen, 3 bulls, over a thousand chickens, 200 -ducks and 500 pigeons, besides half a dozen deer. -This gave the entire estate a farmlike aspect that -was very pleasing to Mr. Gould. Over two hundred -and fifty tons of hay were harvested in the fields of -Lyndhurst every year. Mr. Gould took great pleasure<span class="pagenum" id="Page_238">238</span> -in going out to the fields on summer afternoons -to lie under the trees and watch the haying. The -far-off drone of the flying sickle came to his brain -as a soporific balm, and the sight of the sun-worn -toilers heaving away at the great, slow wagons and -the distant songs of the reapers lulled him to slumber.</p> - -<p>In Mr. Gould’s stables there were fifteen or -twenty carriages and conveyances of one kind or -another, many of which were not used once a year. -To get rid of malaria, Mr. Gould filled in over one -hundred and twenty acres of swamp land. Mr. -Merritt spent over $1,250,000 in improving the place -and Mr. Gould spent about $1,500,000 in the same -endeavor.</p> - -<p>Mr. Gould was a great lover of art, and was continually -purchasing statuary and paintings. Beyond -the carriage archway leading to the outer hall of the -Gould castle is a bust of Lafayette; on the other -side is one of Washington. On the right of the -inner hall is a bronze Ethiopian woman and a painting -by Perrault. There are many marble busts and -statues on onyx pedestals scattered throughout the -house, most of which were purchased by Mr. Gould. -In the picture gallery are innumerable rare paintings. -Among them are “A Forest Scene,” by Rousseau; -“A River Scene,” by Ziem; “Evening Antique -Dance,” by Corot; “A Girl,” by Fleury; “A Storm -on the Farm,” by Jacque; “Priest and Cavalier,” by -Meissonier, and “Le Loup dans la berguerie,” by -Loustaunau.</p> - -<p><span class="pagenum" id="Page_239">239</span></p> - -<p>Then there are Vernets, Simonettis, Kaemmerers, -Constants, Bouguereaus and Troyons innumerable, -all of which were purchased, either directly or indirectly, -by Mr. Gould. This was in the earlier stages -of his home-making and before he had the fever of -the farm and conservatory upon him.</p> - -<p>Mr. Gould was not a great admirer of the drama, -but he was rather fond of opera, and this formed -almost his only public diversion during the winter -months. He was seen very often at the Metropolitan -during the opera season with his daughter and -daughter-in-law.</p> - -<p>In 1883 Mr. Gould built the big steam yacht Atalanta, -and for several years he was well known in -yachting circles. He was elected a member of the -Eastern and Larchmont yacht clubs, and applied -for membership in the New York Yacht Club. The -opposition to his name which was developed in the -club was so strong, however, that his friends withdrew -his name. This furnished a sensation at the -time. George J. Gould, who had for some time -taken an active interest in yachting, and was a -member of the club, at once resigned. Mr. Gould -at one time had an idea of making a cruise around -the world in the Atalanta, but abandoned it.</p> - -<p>Soon after the launching of the Atalanta Mr. -Gould and others formed the American Steam Yacht -Club. The Atalanta developed remarkable speed -and is to-day the fastest large steam yacht afloat. -Mr. Gould had her built because he felt his health to -be failing, and thought yachting would be beneficial<span class="pagenum" id="Page_240">240</span> -to him. Until within the last two years he spent -much time on board of her. She was used principally -as a means of transportation between Lyndhurst, -his home on the Hudson, and the city, though -he made several extended cruises in her. It was not -often that Mr. Gould would allow the Atalanta to be -raced, but on the occasions when he did permit this -she made records.</p> - -<p>Mr. Gould presented to the Larchmont club a -cup, called the Gould Cup, which is raced for every -year. He also contributed largely to the International -Challenge Cup, offered by the American -Yacht Club for competition by steam yachts of different -nations. He was always anxious to see a -challenge for this cup, but so far no nation has challenged, -owing to the great superiority in point of -speed of the American steam yachts.</p> - -<p>Mr. Gould seldom entertained people on board -the Atalanta, but when he did entertain, his hospitality -was perfect. He had the happy faculty of -making his guests feel that the yacht was theirs and -he himself was a guest on board. There was an -excellently well-selected library on the yacht, and -the craft was fitted throughout with quiet and substantial -elegance.</p> - -<p>The Atalanta is 243 feet long, 26½ feet beam and -15½ feet deep. She is built of iron and was designed -and constructed by W. Cramp & Son, of Philadelphia. -In June of 1886 she ran over the 85-knot course -of the American Yacht Club, from Milton Point to -New London, in 4 hours, 34 minutes and 57 seconds.</p> - -<p><span class="pagenum" id="Page_241">241</span></p> - -<p>The house at No. 579 Fifth avenue, where Jay -Gould died, had been his city home for several years. -Before that he lived across the avenue, almost -directly opposite his present house, which before Mr. -Gould bought it was the home of George Opdyke, the -banker, who enjoyed the distinction of being one of -the few Republican mayors which New York has had. -The house stands at the northeast corner of Fifth avenue -and Forty-seventh street. It is a square, brownstone -house, about double the width of the average -house, with an extension in the rear. It is three -stories in height, with a mansard roof, which gives -another story. The main entrance is in the middle -of the Fifth avenue front, under a portico into a -deep vestibule with handsomely carved oaken doors -and mosaic floor. The hall is fifty feet long. On -the left of the hall is a small reception room with -one window facing Fifth avenue. On the other side -of the hall are the great drawing-rooms. The library -and the dining-room are in the rear. Mr. Gould had -a fine collection of standard books. The whole -house was entirely redecorated only a short time -ago, and is everywhere a model of comfort, elegance -and good taste. It is filled with most exquisite -tapestries and the finest paintings. Mr. Gould had -specimens of the work of Diaz, Rousseau, Daubigny, -Henner, Vibert, Rosa Bonheur, Voley, Jacquet, -Schreyer, Bouguereau, Dupre and Meyer von Bremen.</p> - -<p>Attached to the house is a conservatory, which -is kept constantly filled with the finest plants from -the hot-houses in the country house at Irvington.</p> - -<p><span class="pagenum" id="Page_242">242</span></p> - -<p>Mr. Gould lived quietly in his handsome house, -and few people other than intimate friends frequented -it. He was devoted to his family and spent -nearly all of his time not occupied with his financial -operations with them. They in turn were devoted -to him. Mrs. Gould for several years before her -death had been in delicate health, could not attend -church, and never took part in social pleasures. Her -trouble was a nervous one, and she could not endure -excitement. Thus the house was never given over -to festivities to any extent. Sumptuous as it was, it -did not compare in size or display with that of other -men whose fortunes rivaled Mr. Gould’s, or, in fact, -with the homes of many whose wealth was not a -tenth of his. All looked at the place with interest, -however, when it was pointed out as the retreat of -the remarkable man whose public life was so dramatic, -and whose home life was so quiet and so -peaceful.</p> - -<p>Mr. Gould attended the recent horse show on -three afternoons, but these are the only occasions -he ever publicly exhibited any particular liking for -horses. His city stable is one of a row on West -Forty-fourth street, between the Berkeley school -building and Fifth avenue. It is a two-story, twenty-foot -front brick building trimmed with granite. It -is No. 14 West Forty-fourth street. It is a neatly -arranged stable of the old-fashioned, oak-trimmed -pattern common in the neighborhood. Mr. Gould -kept only three pairs of horses at the time of his -death, and they are all quartered in the building.<span class="pagenum" id="Page_243">243</span> -Four of the horses are cobby bays, two with docked -and two with banged tails. The other two are long-tailed -black roadsters, and the most valuable of the -lot. None of the horses would bring a fancy price -if put up at auction, but they are all of the good, -plain sort that will stand plenty of work.</p> - -<p>Simplicity was the chief characteristic of the -carriages used by Mr. Gould. He always bought -the best and paid the prices asked without cavilling, -but the first outlay was all the carriages ever cost -him. He was careless in the extreme regarding repairs -or fresh trimmings, seldom having any work -done on any of his vehicles. Mr. Gould always -selected his carriages personally, and always bought -from the same firm. He was easy to suit, always -telling just what he wanted and taking the first carriage -that met his ideas.</p> - -<p>James Downs is the Gould coachman. He has -served the family for over ten years. The carriages -at the stable ready for use are a brougham, landau, -victoria and a hunting wagon. The last is gaudy in -yellow and black and is the newest of the vehicles. -The others are plain in coloring and are what driving -people call old style. Jay Gould’s livery is a -dark green, and was worn on the usual occasions by -both coachman and footman.</p> - -<p>Two years ago Mrs. George Gould was in the -habit of giving her father-in-law early morning -drives in Central Park, calling for him daily in a -neat trap of her own. With this exception he seldom -drove for pleasure in the city. At Irvington<span class="pagenum" id="Page_244">244</span> -he was occasionally seen driving on the roads near -his residence. Until the purchase of his yacht Mr. -Gould drove to and from the railroad station daily, -but since then he has only taken drives at infrequent -intervals.</p> - -<p>None of the Gould family is especially devoted -to riding or driving. George Gould keeps six carriage -horses and a saddle horse at his stable, No. -133 West Fifty-fifth street, but they are more for -Mrs. Gould’s use than his own. His coachman, -William Willis, has eight carriages and light traps -to care for. Edwin Gould is a capital rider, and -until his promotion to a captaincy and the post of -Inspector of Rifle Practice in the Seventy-first -Regiment, was an active member of Troop A. He -always rode a long-tailed gray thoroughbred, for -which he paid a high price. Edwin Gould was -very proficient at wrestling on horseback, and few -of the cavalrymen could unseat him. The Misses -Gould drive daily during their stay at Irvington, -using the family carriages or else handling the reins -in the hunting wagon or in a mail phaeton.</p> - -<div id="i_245" class="figcenter" style="max-width: 30em;"> - <img src="images/i276.jpg" width="1858" height="3205" alt="" /> - <div class="caption">George J. Gould</div></div> - -<hr /> - -<div id="toclink_245" class="chapter"> -<p><span class="pagenum" id="Page_245">245</span></p> - -<h2 class="nobreak" id="CHAPTER_XVIII">CHAPTER XVIII.<br /> - -<span class="subhead">THE GREAT FORTUNE AND ITS INHERITORS.</span></h2> -</div> - -<p class="drop-cap"><span class="smcap1">Five</span> days after the death of Jay Gould, the contents -of his will, or at least the substance of it, -were made public in the press. The will itself remained -under lock and key in the safe of ex-Judge -John F. Dillon, counsel for the executors.</p> - -<p>“The original will,” said ex-Judge Dillon, in -giving out the summary, “is dated December 24, -1885, during the lifetime of Mr. Gould’s wife. It -made various provisions for her benefit which failed -of effect by reason of her death before the death of -her husband. After and in consequence of her -death, Mr. Gould, on February 16, 1889, executed -the first codicil to his will, making such changes as -became necessary. A second and a third codicil -were executed on November 21, 1892.</p> - -<p>“Taking the wills and codicils together the summary -I give you is accurate and complete.”</p> - -<p>The specific legacies came first. The three sisters, -who with their brother Abraham got $25,000 -and an annuity of $2,000, were Mrs. Sarah Northrup, -Mrs. Anna G. Hough and Mrs. Elizabeth Palen. -Mrs. Northrup and her daughters received in addition -the three lots of ground in Camden, N. J., on -which their dwelling is erected. The annuities were -to be paid in equal sums quarterly.</p> - -<p><span class="pagenum" id="Page_246">246</span></p> - -<p>To his daughter Helen M. Gould he gave in fee-simple -absolute the house in which he lived, No. -579 Fifth avenue, and all of the furniture, books, -paintings, statuary, silver plate and household -contents therein. He also gave to his daughter -Helen, until his youngest child shall arrive at age, -the use of his residence at Irvington, commonly -called Lyndhurst, free of taxes, and of all the furniture, -books, paintings and household contents therein, -and also the sum of $6,000 per month. The will -stated that this was done in the expectation that his -minor children, Anna and Frank J., as well as his -son Howard, would during the period provided for -make their home with his daughter Helen.</p> - -<p>The $500,000 to his namesake and grandson, Jay -Gould, son of George J. Gould, was to be held in trust -by George J. Gould, with authority to apply the -same to the support and education of the child, and -to pay one-quarter of the same to him at the age of -twenty-five, one-quarter at the age of thirty and the -remaining half at thirty-five, with power to pay the -same at earlier periods in the discretion of his father.</p> - -<p>The bequest to his son George J. Gould was in -substantially these words:</p> - -<p>“My beloved son, George J. Gould, having developed -a remarkable business ability, and having for -twelve years devoted himself entirely to my business, -and during the past five years taken entire -charge of all my difficult interests, I hereby fix the -value of his services at $5,000,000, payable as follows: -Five hundred thousand dollars in cash, less the<span class="pagenum" id="Page_247">247</span> -amount advanced by me for the purchase of a house -for him on Fifth avenue, New York City; $500,000 -in Missouri Pacific 6 per cent. mortgage bonds; -$500,000 in St. Louis, Iron Mountain and Southern -railway company consolidated 5 per cent. bonds; -$500,000 in Missouri Pacific railway trust 5 per cent. -bonds; 10,000 shares of Manhattan railway stock; -10,000 shares of Western Union stock, and 10,000 -shares of Missouri Pacific stock—all to be taken and -treated as worth par.”</p> - -<p>He appointed as executors and trustees of his -will his sons George J. Gould, Edwin Gould and -Howard Gould, and his daughter Helen M. Gould, -with a provision that in case a vacancy should occur -by death or otherwise his son, Frank J. Gould was to -be an executor and trustee when he shall have -reached the age of twenty-one years, and in case of -another vacancy he appointed his daughter Anna -Gould, to fill such vacancy when she shall have -reached the age of twenty-one years, no bonds to be -required.</p> - -<p>George J. Gould and Helen M. Gould were appointed -guardians of Anna Gould and Frank J. -Gould during their minority.</p> - -<p>All the rest of his estate was devised and bequeathed -to the said executors and trustees in trust; -first, to divide the same into six equal parts or shares -and to hold and invest one of such shares for each -of his said children, George J. Gould, Edwin Gould, -Howard Gould, Frank J. Gould, Helen M. Gould -and Anna Gould, with authority to collect and receive,<span class="pagenum" id="Page_248">248</span> -pay and apply the income thereof to each -child for life, with power to each to dispose of the -same by will in favor of issue, and in case of death -without issue the share of the one so dying to go to -the surviving brothers and sisters and to the issue -of any deceased child, share and share alike, per -stirpes, and not per capita.</p> - -<p>He directed that these trusts should be kept -separate and distinct, and that the accounts thereof -should be kept separately; that no deduction -should be made by reason of any gifts or advancements -heretofore made to or for any of his children.</p> - -<p>In case of difference of opinion among the executors -and trustees as to holding and retaining -securities or investments in managing the estate, he -directed that so long as there shall be five executors -and trustees the decision of four should be conclusive, -and when four the decision of three should be -conclusive, with this further provision in the codicil -of November 21, 1892:</p> - -<p>“The better to protect and conserve the values -of my properties, it is my desire, and I so direct and -provide, that the shares of any railway or other -incorporated companies at any time held by my -executors and trustees or my said trustees, shall -always be voted by them or by their proxies at all -corporate meetings as a unit; and in case my said -executors and trustees or my said trustees do not -concur as to how such stock shall be voted, then, in -view of the fact that my son George J. Gould has<span class="pagenum" id="Page_249">249</span> -for years had the management of my said properties, -and is familiar with them and with other like properties, -I direct and provide that in such event his -judgment shall control, and he is hereby authorized -and empowered to vote the said shares in person or -by proxy in such manner as his judgment shall -dictate.”</p> - -<p>There was the usual provision that the property -of his daughters was for their sole and separate use, -free from any estate or control of their husbands, -and prohibiting all dispositions or changes by any -of the legatees by way of anticipation or otherwise.</p> - -<p>There was a provision that if any of his children -should marry without the consent of a majority -of the executors and trustees, then the share allotted -to such child should be reduced one-half and the -other half of such share should be transferred to -such persons as under the laws of the state of New -York would take the same if the testator had died -intestate.</p> - -<p>Who were the witnesses to the Gould will was -not divulged by ex-Judge Dillon; nor was it known -who drew the will. Judge Dillon said that he -didn’t. It was thought probable that Gen. Swayne, -who was formerly in partnership with the judge, was -the man, but he declined to say. There were many -who believed that Gould himself drew the will. A -gentleman who knew Mr. Gould very well said:</p> - -<p>“From what I know of Mr. Gould, however, I -believe he drew it himself. He was naturally a very -secretive man, and any important undertaking he<span class="pagenum" id="Page_250">250</span> -kept to himself as much as possible. He was an -able lawyer, and certainly had sufficient knowledge -to have made the will.”</p> - -<p>In spite of Mr. Gould’s great interests his executors -found his affairs in very trim shape. Something -less than two years ago, in conversation with -Mr. Connor and Mr. Morosini, Mr. Gould remarked:</p> - -<p>“If I should die to-night my affairs are in such -shape that my executors could straighten everything -out in less than forty-eight hours after my death.”</p> - -<p>Many different estimates have been made of the -amount of the fortune of Jay Gould, but nothing has -ever been told by him, nor did the will reveal anything -definite about it. Little difference does it -make whether it was $70,000,000 or $170,000,000, so -long as it was the greatest that ever one man accumulated -in his lifetime.</p> - -<p>Mr. Gould never intended that anybody should -know while he was living, and he saw that his wishes -were carried out in the matter. Sixty millions is the -figure most frequently mentioned, but generally as -a minimum, with a round hundred millions as the -other limit.</p> - -<p>The New York <cite>Tribune</cite> published the following -estimate of his fortune the morning after his death, -and it is probably as accurate as any that can be -made without access to the will and the records -themselves:</p> - -<p>“There is considerable divergence in the opinions -of men who are acquainted with Mr. Gould’s affairs -as to the value of the estate which will fall to his<span class="pagenum" id="Page_251">251</span> -heirs. Although his investments have been known -to be in certain distinct lines, the reticence of Mr. -Gould with regard to many of his transactions has left -a considerable margin between maximum and minimum -estimates. The character of many of the securities -which are his is also so unsettled that there -is room for an extreme range of estimates. First in -the list of his investments are Western Union and -Manhattan, and there is little doubt that his holdings -in these two properties aggregate from $35,000,000 -to $40,000,000 market value. Of Missouri -Pacific stock he may have held from $9,000,000 to -$11,000,000, and at current prices the value of his -holdings of this property probably reached $5,000,000. -The Missouri Pacific system is so complicated -with bond issues that it is difficult even for his -friends to make a trustworthy guess as to his possessions -of the various issues of bonds. Counting in -the St. Louis and Iron Mountain issues, the different -bonds of the various lines embraced in the Missouri -Pacific system and the consolidated issues on the -system were held by Mr. Gould to the extent of -$20,000,000 or more in market value. He was -credited with holding about 220,000 shares of Western -Union stock and something like 110,000 shares -of Manhattan. At the recent Stock Exchange -figures the value of these two interests may be conservatively -placed at $36,000,000. Mr. Gould’s investments -in Wabash are large, but their market -worth is not commensurate with the par value. It -would be a generous estimate to place these holdings<span class="pagenum" id="Page_252">252</span> -at a value of $10,000,000. The same amount -may represent Mr. Gould’s holdings of the securities -of the Texas and Pacific railway. It is difficult to -say how largely he was interested in Union Pacific -securities, but he was a holder of about $2,000,000 -collateral trust notes of the Union Pacific, taken as -security for money advances.</p> - -<p>Mr. Gould was never known as a large investor -in government bonds. He is said, though, to have -subscribed liberally to the debenture bonds of the -New York Central. A mass of miscellaneous securities -must be counted in the aggregate, including -bonds of coal properties on the line of the Missouri -Pacific, southern ventures and a host of bonds and -stocks of varying degrees of worth and promise.</p> - -<p>The possessions of Mr. Gould at Irvington-on-the-Hudson -and his home in this city may be estimated -at $1,000,000. Far more than this amount -has been invested in the two properties, the decorations -of the Fifth avenue house and the extensive -conservatory alone commanding the expenditure of -important sums. It is also said that Mr. Gould owns -considerable real estate in the West. He is understood -to have considerable property in St. Louis -which is productive, and he is believed to have made -purchases of improved property in Chicago after the -World’s Fair enterprise became assured of success. -But much of his real estate investments in Texas -and other parts of the Southwest, and in Southern -California, is of a nature that does not yield immediate -returns.</p> - -<p><span class="pagenum" id="Page_253">253</span></p> - -<p>There is an agreement among several men who -have means of estimating Mr. Gould’s wealth that -its aggregate value may be placed around $100,000,000. -A few estimates carry the value higher, while -the conservative view would put the sum at $80,000,000 -or $90,000,000. Russell Sage estimates his -friend’s estate at $100,000,000, but Washington E. -Connor is said to have placed his estimate at a considerably -smaller figure. Another man, who has -some knowledge of Mr. Gould’s affairs, stated -that Mr. Gould had an annual income of $5,000,000, -and that, considering the character of much of -the property held by Mr. Gould, it was safe to say -that this income must be based on a principal of -$100,000,000 or more. Allowing for the difference -in estimates made by those persons who should -know the facts, it is believed that the following table -presents to as close a degree as is possible the current -value of the Gould estate, and of its principal -constituents:</p> - -<table id="estate" class="p1 b1" summary="estimated value and constituents of Gould estate"> -<tr> - <td class="tdl vmid"><span class="in2"><i>Holdings.</i></span></td> - <td class="tdr"><i>Estimated <br /><span class="l1">Value.</span></i></td> -</tr> -<tr> - <td class="tdl">Western Union stock</td> - <td class="tdr">$22,000,000</td> -</tr> -<tr> - <td class="tdl">Manhattan stock</td> - <td class="tdr">14,000,000</td> -</tr> -<tr> - <td class="tdl">Missouri Pacific stock</td> - <td class="tdr">5,000,000</td> -</tr> -<tr> - <td class="tdl">Missouri Pacific system bonds</td> - <td class="tdr">20,000,000</td> -</tr> -<tr> - <td class="tdl">Union Pacific stock</td> - <td class="tdr">5,000,000</td> -</tr> -<tr> - <td class="tdl">Union Pacific bonds or notes</td> - <td class="tdr">2,000,000</td> -</tr> -<tr> - <td class="tdl">Wabash stock</td> - <td class="tdr">3,000,000</td> -</tr> -<tr> - <td class="tdl">Wabash bonds</td> - <td class="tdr">5,000,000</td> -</tr> -<tr> - <td class="tdl">Texas and Pacific stock</td> - <td class="tdr">5,000,000</td> -</tr> -<tr> - <td class="tdl">Texas and Pacific bonds</td> - <td class="tdr">5,000,000</td> -</tr> -<tr> - <td class="tdl">Other securities</td> - <td class="tdr">10,000,000</td> -</tr> -<tr> - <td class="tdl">Real estate, etc.</td> - <td class="tdr">4,000,000</td> -</tr> -<tr> - <td class="tdl tpad"><span class="in4">Total</span></td> - <td class="tdr tpad"><span class="bt">$100,000,000</span></td> -</tr> -</table> - -<p><span class="pagenum" id="Page_254">254</span></p> - -<p>Estimates made by other newspapers and other -financiers, however, who have equally good authorities -on which to base their opinions, vary all the way -from $50,000,000 to $150,000,000.</p> - -<p>In calculating the amount of Mr. Gould’s estate, -the first difficulty met with lies in the fact that the -records of his various companies by no means tell -the story of his holdings in their securities. More -even than many of his rivals, he has followed the -policy of getting along without going through the -formality of letting the extent of his ownership -appear on the books of the companies. Besides, -although he reduced the number of his investments -in the last few years—at least the street says he did -so—he had interests extending over a wide field.</p> - -<p>In only one branch of investments did Mr. Gould -do very little, and that was in real estate. His possessions -of real property were far smaller than those -of many men not one-tenth as wealthy. He had -his place at Irvington which represents $750,000 -to $1,000,000, and his Fifth avenue house, worth -$300,000 to $400,000. Several years ago he bought -real estate in St. Louis, which the Missouri Pacific -expected to use for headquarters. He paid $150,000 -for this piece of property, which is supposed to be -worth three times that amount now.</p> - -<p>In spite of his policy of concentrating his holdings -in his later years, the list of companies in which -Mr. Gould had large interests is an imposing one. -The principal corporations with which he was connected -at the last include the Missouri Pacific railroad,<span class="pagenum" id="Page_255">255</span> -the St. Louis and Iron Mountain, the International -and Great Northern, Richmond Terminal, -the Texas Pacific, the Union Pacific, the Wabash, -the St. Louis Southwestern, the Manhattan Elevated -road, the Pacific Mail Steamship Company, and the -Western Union Telegraph Company.</p> - -<p>Moreover, these corporations cover scores of -smaller and subordinate companies. Through Missouri -Pacific Mr. Gould was interested in something -like fifty companies, and the other great systems -would run the list of the subordinate concerns up -into the hundreds. As president of the Union Pacific, -Charles Francis Adams once testified that he did -not know how many presidencies he held, and Mr. -Gould would have had an excuse several times better -than Mr. Adams possessed for not having at his -finger ends the number of concerns with which he -was connected. At his office yesterday nobody -would venture to say what the list would foot up.</p> - -<p>Mr. Gould was president of the Missouri Pacific, -the Manhattan Elevated, the Texas Pacific, the St. -Louis and Iron Mountain, the International and Great -Northern, and a director in Richmond Terminal, -Western Union and Union Pacific. He is credited -with a control of the stock of the elevated road and -a large amount of its bonds; with the largest individual -holding in Western Union stock, besides -stocks and bonds of its leased lines; a control of -Missouri Pacific stock and large amounts of its bonds, -particularly the new issues of fives; a large block of -Wabash, the amount at times running up to 40,000<span class="pagenum" id="Page_256">256</span> -shares; an interest in Union Pacific, including, perhaps, -1,000,000 of the collateral trust bonds; heavy -investments in the other lines known as Gould -properties; a block of New York and Northern -securities, and a control, with Russell Sage, of the -St. Louis Southwestern.</p> - -<p>In Wall street the Gould will was accepted with -something akin to a vote of thanks. The satisfaction -was in the fact that there was to be no partition -sale, with the flinging upon the market of such a -batch of easily affected stocks as Jay Gould had -gathered. Even a partition of the securities in -the will would have made many owners and possibly -clashing of interests, where now one hand would -cast the vote represented by this enormous aggregate -of stocks. This voting power would rest absolutely -and individually with George, and would make -him even more than his father a power in Wall -street, at least for a time.</p> - -<p>Just now he is getting open praise even far -beyond what appears in the will of his great business -ability. Some who know him by his acts say that -his weak points are his combative obstinacy and his -penuriousness. Stories upon stories are told of his -miserly disposition, but they come in large part from -roysterers who looked upon the eldest son of Gould -as under some sort of obligation to put up the cash -for their festivities when out in company. George -did nothing of the sort, but had a sharp account for -each penny expended, and kept himself posted in -prices of things from the highest to the lowest grade.<span class="pagenum" id="Page_257">257</span> -He has not his father’s slow-moving anger so easily -set aside for future use when an enemy was to be -crushed. Instead, the young man is apt to flare up -and show his hand to his own detriment.</p> - -<p>When it comes to the fighting to hold his own -against competition, which will be necessary in all -of the properties left by the multi-millionaire, George -will be met by a warfare entirely different from that -directed against Gould senior. The fact that all the -wealth, so to speak, is left in one pile, simplifies the -war for its possession, and from this time on George -Gould will be one of the best watched, best courted -and very soon best hated men in America. His -training has been a very narrow one. He has not -studied finance in any large school. Schooling of -any sort has been distasteful to him, and while not -positively illiterate, he has no taste for books even -on financial questions, but has a tremendous head -for figures and loves plenty of bustle in his work.</p> - -<p>The lack of charitable bequests did not surprise -Wall street, but there was no dearth of comment on -the matrimonial board into which four of the children -have been constituted, with the two Mrs. -Goulds as <i xml:lang="la" lang="la">ex-officio</i> advisory members. Bets were -offered that if the other members of the household -attempted to act as a committee of the whole when -an engagement was to be announced, that in some -shape the intervention of lawyers would be necessary, -and all the possibilities of this selection of -bride and bridegroom by arbitration were discussed. -As it stands now, an obstinate love match without<span class="pagenum" id="Page_258">258</span> -family consent may cost Howard or Frank, or Helen -or Anna, a round sum of nearly $8,000,000, and put -this amount into the other five pockets of the present -sextette.</p> - -<p>The death of Jay Gould leaves vacant the presidency -of the Missouri Pacific railway, the Texas -Pacific, the International and Great Northern and -Manhattan Railway Company. George J. Gould, it -is expected, will take his father’s place in these -companies. In the Western Union company no -position becomes vacant, except that of a membership -of the board of directors.</p> - -<p>George Gould is president of the Pacific Mail -Steamship Company. He is first vice-president of -the Manhattan railroad and of the Texas Pacific. -He is second vice-president of the Missouri Pacific -and the St. Louis and Iron Mountain road. He is -a vice-president of the Western Union Telegraph -Company, and a member of the executive committee -of its board of directors. He is a director in -the Wabash and the International and Great Northern. -He is a member of the Stock Exchange.</p> - -<p>Edwin Gould, the second son, has a shorter list -of offices. He is president of the St. Louis Southwestern, -a director in Western Union and a member -of the executive committee, and a director in the -Manhattan and Missouri Pacific railroad companies. -He has done some very successful work in -finance, and has been counted a very shrewd operator -from the beginning of his business career. The -story is told of him that when he was starting out in<span class="pagenum" id="Page_259">259</span> -money-making his father decided to test his mettle, -and was highly delighted when the youth came out -of the conflict with flying colors. Edwin Gould is a -member of the Consolidated Exchange.</p> - -<p>Howard Gould, the third son, is getting his first -experience in business. He has been given as a -start a seat in the directorate of the International -and Great Northern Railroad Company.</p> - -<p>Considerable interest attaches to the liability of -the Gould estate for the payment of an inheritance -tax. While the terms of the will are of course not -known, and the question of public bequests is not -settled, the Wall street idea is that such bequests, if -they exist, are not likely to cut into the total to any -appreciable extent. Under the laws of 1892 property -bequeathed to Mr. Gould’s children will be liable -to a tax of 1 per cent. Section 2 of chapter 399 says:</p> - -<div class="blockquot"> - -<p>“When the property or any beneficial interest -therein passes, by any such transfer, to or for the use -of any father, mother, husband, wife, child, brother, -sister, wife or widow of a son, or the husband of a -daughter, or any child or children adopted as such in -conformity with the laws of this state, or to any person -to whom any such decedent, grantor, donor, or -vendor for not less than ten years prior to such transfer -stood in the mutually-acknowledged relation of a -parent, or to any lineal descendant of such decedent -grantor, donor, or vendor born in lawful wedlock, such -transfer shall not be taxable under this act unless it is -personal property to the value of $10,000 or more, in -which case it shall be taxable under this act at the -rate of 1 per centum upon the clear market value of -such property.”</p> -</div> - -<p><span class="pagenum" id="Page_260">260</span></p> - -<p>The next section makes the tax a lien upon the -property until it is paid. The tax is to be collected -by the controller of the county. Payment within -six months gives a discount of 5 per cent.; if it is -not made in eighteen months a penalty of 10 per -cent. is provided. The controller’s fee is 5 per cent. -on the first $50,000 of the tax, 3 per cent. on the second -$50,000, and 1 per cent. on the rest. The balance -of the tax is to be paid into the State Treasury.</p> - -<p>A tax of 1 per cent. on the estate should yield -from $650,000 to $1,000,000, according to which of -the limits on the estimate approaches the real valuation. -The controller accordingly would figure on -a fee of from $8,000 to $13,000.</p> - -<p>It was said at the corporation counsel’s office -that if it shall be proved that Mr. Gould has left his -personal property, especially his railroad interests, in -hands of trustees for a term of years, the interest to -go to his children, the fact that the estate is in the -hands of trustees cannot prevent the state from -levying and collecting the inheritance tax.</p> - -<p>Said one of the assistant corporation counsels: -“If Mr. Gould could by the terms of his will, by -deed or gift or otherwise, make such a disposition -of his estate as to render the law in such cases nugatory, -his children and heirs to the remotest generation, -when they came to devise their property, -could do the same thing, and the estate would thus -be perpetually barred of its rights. I believe that -the personal estate that Mr. Gould has left for -the benefit of his children, no matter in what form,<span class="pagenum" id="Page_261">261</span> -is taxable at 1 per cent. All property left out of -lineal descent would be taxed at 5 per cent. on its -clear market value.”</p> - -<p>In spite of Jay Gould’s many millions, he was -down on the tax-lists for very modest amounts. He -seems to have had as much ability in keeping down -his taxes as in piling up his millions. Despite his -immense accumulations, he paid taxes on only -$500,000 in personal property. The real estate on -which he paid directly was confined to the Grand -Opera House, of which he was the owner, and to his -home on Fifth avenue. At one time he also paid -the taxes on his son’s home on East Forty-seventh -street, but after that formally passed out of his possession -he was, of course, relieved from paying any -further taxes on that property.</p> - -<p>Notwithstanding the very conservative estimate -placed upon the value of his personal holdings, Mr. -Gould tried, a few years ago, to escape paying any -personal taxes at all in this city. He urged the -familiar plea of outside residence, and because he -paid personal taxes in Westchester county on his -belongings at his country home at Irvington, insisted -that he was being unfairly treated in being compelled -to pay even on that supposititious $500,000 of personal -property in this city. He did not press the matter, -however, and continued to allow his personal property -to be placed on the tax-list at $500,000.</p> - -<p>Commissioner Baker, of the tax department, -said that it was impossible to tell just what Mr.<span class="pagenum" id="Page_262">262</span> -Gould’s holdings in real estate in New York really -amounted to.</p> - -<p>“Real estate,” Mr. Baker explained, “is entered -on the books of the tax department by number -only. The only way to get any idea there as to the -ownership of a piece of property is to see who paid -the taxes on it. According to this test, the real -estate on which Mr. Gould paid taxes in New York -is confined to his residence. The Manhattan Railroad -Company is a large holder of real estate, but -the company pays its own taxes, of course, and the -only place Mr. Gould’s name appears on the tax -department books is in relation to his residence and -the admitted $500,000 of personal property.”</p> - -<p>Ex-Tax Commissioner Coleman added the opera -house property to the list that Mr. Gould paid on -personally.</p> - -<p>“The peculiarity of the matter,” said Mr. Coleman, -“is that Gould was never really in business in -New York City. His wealth was very largely in -stocks that had no particular value by themselves -and that were not even on the market. He made -his money by taking hold of almost bankrupt companies, -getting control of the common stock that -had no particular value beyond its voting power, and -then by manipulating things to his own interest.</p> - -<p>“Besides, his various railroad stocks, like the -Union Pacific, Wabash, Texas and Kansas Pacific, -were not assessable. The bonds that were assessable -were generally those of roads that had been -reorganized and reorganized till any estimate of value<span class="pagenum" id="Page_263">263</span> -became a pure matter of guesswork. Then he could -come in and swear down the valuations.”</p> - -<p>The tax commissioners are compelled to take -any man’s affidavit as to the value of his personal -property, and, as Commissioner Baker put it, “Where -it’s a question of dollars and cents, we find every -man’s conscience becomes rather pliable.”</p> - -<p>Mr. Gould seems not to have cared to pass as an -exception to so well-established a rule, and hence -the modest estimate he placed on his earthly possessions -for the purposes of the tax collector. As -a result of this trustful feature of the assessment -laws, $25,000 a year is said to be an ample estimate -for the entire amount of annual taxes Mr. Gould -paid on his variously estimated millions.</p> - -<hr /> - -<div id="toclink_264" class="chapter"> -<p><span class="pagenum" id="Page_264">264</span></p> - -<h2 class="nobreak" id="CHAPTER_XIX">CHAPTER XIX.<br /> - -<span class="subhead">JAY GOULD’S RELATIONS WITH THE PUBLIC.</span></h2> -</div> - -<p class="drop-cap"><span class="smcap1">There</span> are interesting features of the life of Jay -Gould regarding his relations with the public, -the church, the press and the people whom he met.</p> - -<p>Jay Gould was not what is called a religious man. -He was a pewholder in the Presbyterian church at -Irvington and in the Rev. Dr. Paxton’s church on -West Forty-second street, but not a communicant. -If he ever expressed any religious views it was to -the Rev. Dr. Paxton. Certainly he did not to the -Rev. Dr. Henry M. MacCracken, chancellor of the -University, nor to the Rev. Roderick Terry, with -whom he was on intimate terms of friendship. Dr. -Terry said:</p> - -<p>“There was no pretense about Mr. Gould. He -never made any public profession of Christianity -that I know of. On the subject of religion, as on so -many others, he was extremely reticent, unless he -unbosomed himself to his pastor, Dr. Paxton. He -certainly never talked with me about his feelings on -the subject of religion, though the opportunity -offered more than once.”</p> - -<div id="i_264" class="figcenter" style="max-width: 30em;"> - <img src="images/i297.jpg" width="1910" height="2727" alt="" /> - <div class="caption">JAY GOULD’S PRIVATE CAR AND HIS YACHT “ATALANTA.”</div></div> - -<p>Mr. Gould’s wife was a member of the South Reformed -church for many years, but afterward became -a Presbyterian. The millionaire of late years<span class="pagenum" id="Page_265">265</span> -had been a frequent attendant at the Rev. Dr. Paxton’s -church and at the Presbyterian church at -Irvington-on-the-Hudson, near his country place. -An old friend of the family said that when a very -young man Jay Gould became converted at a Methodist -revival meeting. This gentleman said:</p> - -<p>“When Jay Gould was a young man he was converted -in a Methodist church at Roxbury, Delaware -county, N. Y. The Rev. Mr. Dutcher, father of Rev. -E. C. Dutcher, now pastor of the Methodist Episcopal -church in Nyack, Newark conference, was pastor -in charge of the Roxbury church. The elder Mr. -Dutcher was holding a series of revival meetings. -The little Delaware county church was crowded -night after night.</p> - -<p>“At one of the meetings, after a specially earnest -appeal by the venerable preacher, young Gould went -forward to the altar and professed conversion. He -subsequently connected himself with the Presbyterians. -The late Rev. Dr. Jacob West, then corresponding -secretary of the Board of Foreign Missions -of the Dutch Reformed church, preached a number -of times in the Roxbury Reformed church. Gould -always attended, and the Rev. Dr. West frequently -said Gould was always a remarkably attentive -listener.”</p> - -<p>Mr. Gould’s name was discussed most prominently -in connection with church work last February, -when he gave his check for $10,000 to the Rev. Dr. -John Hall. The circumstances aroused much comment -and considerable unfavorable criticism.</p> - -<p><span class="pagenum" id="Page_266">266</span></p> - -<p>On Tuesday evening, February 23d, the Gould -mansion was handsomely lighted up. Over one -hundred invitations had been issued by Mr. Gould -and his daughter, Miss Helen Gould, to prominent -Presbyterians and members of the Presbyterian -Board of Church Extension. It was understood by -those receiving the invitations that the reception -was solely for the purpose of raising funds. Mr. -and Miss Gould received the guests. They were -assisted by Mrs. Russell Sage and Mrs. J. P. Munn. -The Rev. Dr. Paxton said, in the course of his opening -address to the guests:</p> - -<p>“When I asked Mr. Gould about opening his -home for a meeting of the friends of Presbyterian -church extension, without hesitation or deliberation -he and Miss Gould said at once, and said it cordially: -‘Certainly, with great pleasure,’ and Mr. -Gould added: ‘I believe in church extension on -Manhattan Island.’ But Mr. Gould has taken -another step in the right direction, for since he -asked us here—Mr. Sage told me this—Mr. Gould, -who is superficial in nothing, wanted to know what -church extension is, and what church ought to be -extended, and so he read our confession of faith.</p> - -<p>“I am not certain of that, for he and the revision -and new creed people would not agree; he is old -school; he believes in obeying marching orders, like -Wellington; in walking in the old paths, like the -New York <i>Observer</i>. But one thing, Mr. Sage told -me, our host has made up his mind on, and that was -that our form of church government was the most<span class="pagenum" id="Page_267">267</span> -just, the most republican, the best in the world. -Therefore, our host is not only in favor of church -extension but of Presbyterian church extension. -He wants no popery, no prelacy, no three orders in -a church in a land where all are equal in rights and -before the law. I am sure this information will -warm Dr. Hall’s heart and impart to his speech -increased fervor when he speaks to-night.</p> - -<p>“We are here to face the foe, to take heart of -hope, to give our money, our prayers, our tribute, -our toil, knowing no such word as fail, to this good -cause of extending, as Mr. Gould says, the only -true, holy, catholic, American church—our old blue-bordered -Presbyterian denomination.”</p> - -<p>“I have never met Mr. Gould but once before,” -said the Rev. Dr. Hall, “and that was many years -ago. A gentleman in Chicago wrote me regarding a -missionary, who had been called back from China -by the illness of his wife. The wife had recovered -after the missionary’s return, and the couple wanted -to return to China again. The Chicago gentleman -wanted to know if I could not secure a free pass for -the man. I went to the railroad authorities, and -was referred to Mr. Gould.</p> - -<p>“I entered the room with fear and trembling and -with many misgivings. I had never seen Mr. Gould, -and you can all sympathize with my feelings. He -received me cordially and listened to all I had to -say. He said he thought it was a very deserving -case and asked me to leave a memorandum of it. -The next day I received a communication from him<span class="pagenum" id="Page_268">268</span> -containing a ticket for the railway journey and -another for the missionary’s passage to his destination.”</p> - -<p>About $20,000 was subscribed at this reception, -and Jay Gould gave his check for $10,000. The -Rev. Dr. Parkhurst was among those who criticised -the affair as an ostentatious display of wealth in the -name of religion. He wanted to know where Mr. -Gould got that $10,000.</p> - -<p>The religious side of Mr. Gould’s life, so far as -the public knew anything of it, was fully told at -this church-extension reception.</p> - -<p>Mr. Gould was interested in the extension of the -University of the City of New York. Chancellor -MacCracken said:</p> - -<p>“Mr. Gould was very much interested in the university -from his interest in telegraphy and telegraph -lines and the fact that in this building the first telegraph -had its home. Prof. Morse labored here fifty-five -years ago, and was assisted by two of the university’s -professors, Profs. Gail and Vail.</p> - -<p>“I had known Mr. Gould for five years, and from -the beginning of our acquaintance he evinced an -interest in the close relation between the university -and telegraphy, and he made it a favorite subject of -conversation. He made the largest single subscription -toward our purchase of the uptown grounds, -$25,000, and he gave an additional conditional pledge -which I have never made public and shall not yet.”</p> - -<p>In his active, tempestuous business career one -might infer that Jay Gould had little time and less<span class="pagenum" id="Page_269">269</span> -inclination to take up charitable work to any extent. -As a matter of fact, what little is known of him in -this connection became public within a very recent -period. His friends say he gave largely and was -generous to a degree when he was assured of the -genuineness of a reported case of distress. He -never, so far as can be learned, made use of any -public organization in the disbursement of funds for -any charitable object. Whatever he did he preferred -to do with his characteristic secrecy.</p> - -<p>He was greatly influenced by his family in giving, -and through his children quite a large number of institutions -were aided by the money of the financier. -For instance, his daughter Helen, of whom he was -exceedingly fond, is interested in many organizations -engaged in charity work. Through her Jay -Gould has given frequently and largely.</p> - -<p>A pretty story is told of the charity organization -society that existed in Mr. Gould’s own household. -Its sessions were held each morning after breakfast. -Like other rich men, he was assailed constantly with -showers of begging letters. These were regularly -sorted out every morning, and each member of the -family chose as many from the pile as desired until -none were left. If a letter appeared to describe a -case of real need it was placed in the center of the -table. The others were burned.</p> - -<p>Then ensued quiet investigation, conducted as -secretly as the operations of the closest detective -bureau. People in want were given aid commensurate -with the needs of the particular case, but<span class="pagenum" id="Page_270">270</span> -were never able to thank the donor, for the identity -of the giver was never disclosed. In this way, it is -said, many hundreds of poor people were relieved.</p> - -<p>Another method employed was to look up cases -of distress independent of the petitions poured in by -mail. To just what extent this charitable work was -carried on will never be known, for those conversant -with it will not speak of it.</p> - -<p>Mr. Gould’s name is unidentified with any great -public benefactions. Astor and Tilden founded libraries, -Drew established a theological seminary, -George I. Seney distributed millions and Vanderbilt -endowed a hospital, but Gould’s purse was -never opened by any such generous ambition. He -was kind to his relatives, gave his brother a good -position in the Missouri Pacific railroad and built -his sisters a school in Camden. He gave liberally -to alleviate the suffering by the Chicago fire and by -the Memphis yellow-fever plague, made big subscriptions -to the Grant and Garfield funds, and -added eighty acres to the Mount Vernon property. -This was nearly all he did in a public way. Gould’s -politics sprang from his pocket, not from his patriotism. -He has already been quoted as saying that -“in Republican districts he was a Republican, in -Democratic districts a Democrat, and in all an Erie -man.” But Mr. Gould was more a Republican than -anything else, for he obtained, or thought he could -obtain, more recognition and protection from that -party than from the Democratic. The Republican -party was the party of large land grants, of liberal<span class="pagenum" id="Page_271">271</span> -appropriations and of corporation tendencies. In -presidential elections Mr. Gould often contributed -heavily to the Republican campaign fund, and his -check was always solicited and joyfully received. -In 1880 his money was probably part of that which -bought Indiana for the Republicans, and it was -charged that he obtained reward from President -Garfield in the appointment of Stanley Matthews as -associate justice of the Supreme Court, whose views -relative to the Pacific railroads and other corporation -questions were understood to be favorable to -Gould. This charge, of course, was hard to prove, -and may be unjust to both Garfield and Matthews.</p> - -<p>In 1884 Gould supported Blaine. He was present -at the celebrated millionaire dinner given to Blaine -at Delmonico’s two or three evenings before the -election, and which, with the Burchard incident, -probably turned the evenly-balanced scales of public -opinion against the Maine statesman. Gould’s -money was powerful and his presence was contaminating, -and the public distrusted any of its servants -who seemed to be friendly with him.</p> - -<p>One of the most sensational stories about Mr. -Gould’s career is told by a prominent politician now -in Washington.</p> - -<p>“His next appearance here after the ‘Black -Friday’ excitement,” said the politician, “was when -he tried to bribe Congress to let up on the Union -Pacific railroad, which then owed the government -$1,000,000,000. He desired the passage of a bill -giving favorable terms to the railroad in adjusting<span class="pagenum" id="Page_272">272</span> -its outstanding liabilities with the government. -Huntington was here with Gould. Money was -plentiful as water. As one man who got some of it -said, ‘All that was necessary to do was to stretch -your hand and take it.’ Gould, flushed by success -with his own creatures, fancied he could buy a -majority. In fact, he thought he could buy the -entire Congress if he desired. He went into a -prominent senator’s room on Fourteenth street whom -he knew slightly. He told him he wanted to talk -to him about the pending bill. ‘Mr. Gould,’ the -senator replied, ‘if you want to see me about -public affairs, you will have to call on me at the -senate.’</p> - -<p>“‘But I don’t want to go to the senate. I won’t -go there. I want your assistance and I desire to -make it worth your while to assist me.’</p> - -<p>“‘Mr. Gould,’ said the senator, rising and pointing -to the door, ‘oblige me by leaving my rooms.’</p> - -<p>“Gould, dumbfounded, went. But he was more -successful elsewhere. He needed forty votes. I -saw a list on the day the debate was to end. It contained -the names of forty-three senators who were -to vote for the bill. I called old Thurman out. I told -him he was beaten. He asked why. ‘Because,’ I -said, ‘Gould and Huntington have forty-three votes.’ -He said it was impossible and I told him of the list -I had seen. He wanted the list. I doubted my -ability to get it. ‘You must get it,’ he said. I was -a correspondent, and after a while secured the list -and copied it for my paper. Then I showed it to<span class="pagenum" id="Page_273">273</span> -Thurman. He put on his glasses, took a pinch of -snuff, read the list, and exclaiming, ‘This is just what -I want,’ rushed into the senate.</p> - -<p>“When Stanley Matthews, one of Gould’s creatures, -who was speaking, sat down, Senator Thurman -rose to close the debate. I was in the press gallery. -Gould and Huntington sat in the senators’ special -gallery with the list of their creatures in their hands -to check off every senator as he voted in order that -they might know who were faithful to their bribes. -They smiled pityingly when the old Roman began. -They did not believe in integrity. To them every -man had his price, and they had paid the price of a -majority—Thurman’s speech could not hurt them. -It was a magnificent speech. Thurman rang all the -changes and his honest face, his earnest voice, imposing -presence and piercing eyes made many a -public bribe-taker wince. His eloquence was wonderful, -and toward the last the smile of pity on -Gould’s face gave way to a look of anxiety and that -to fear. When in ending, the old Roman, rising to -his fullest height, cried out: ‘It has been charged -that mighty millionaires have purchased a majority -of this senate; that they have collars around the -necks of forty-three. There are circumstances which -suggest, if they do not prove, the correctness of -that charge. Can it be true? A list has been prepared -containing the names of the forty-three. Here -it is.’</p> - -<p>“He took it from his pocket, and while many a -face blanched he read it. ‘And now,’ he concluded<span class="pagenum" id="Page_274">274</span> -after an almost breathless silence, ‘now we will see -if the charge be true.’</p> - -<p>“Well, the vote was taken. Before it was half -over I knew that most of the forty-three had taken -to the woods. Blaine, Matthews and Hill, of -Georgia, I remember, stood their ground and voted -for Gould; but when the clerk footed up the vote it -was found that Gould had, instead of forty-three, -only fifteen votes. His face was black with rage, -and so was Huntington’s. It was a hard day for -them, but it was a glorious one for Thurman, and to -him the country owes a debt of gratitude.”</p> - -<p>No man in the country had a wider audience than -Gould. Whatever he had to say was sure of publication -in every newspaper in the land. Journals that -continually denounced him would print everything he -had to say as a matter of news. Gould was always -an interesting figure. The public never tired of reading -about him, his operations, his yacht, his home, -his daily life. Every word he uttered was eagerly -reported and his movements were watched as closely -as the President’s. In his later years he was quite -accessible to newspaper men, and they found him -not averse to the process of interviewing if he had -anything to say. The <i>Tribune</i> and <i>Sun</i> were his -favorite mediums of communication with the public, -because they seldom attacked and often defended -Gould. Indeed, they were looked upon as his personal -organs during a part of his life. But Gould -would frequently give interviews to other papers. -He recognized the fact that the papers which opposed<span class="pagenum" id="Page_275">275</span> -him were of the widest circulation and influence, and -that if he had anything to say it was time to give -it to the largest circulation. The <i>World</i> was foremost -in denouncing his operations, but he was often -pleased to reach the public through its columns, -even if his words were accompanied with severe -editorial criticism. Mr. Gould was a good talker; -he possessed the art of saying little or much, as he -pleased. The most skillful of interviewers could not -trap him into saying something which he did not -wish to say. When he got through he would stop, -and no amount of ingenuity could induce him to -continue. Mr. Gould was fond of testifying to the -honesty and good faith of newspaper men. When -he knew his man he said he could trust him not to -betray him. But Gould almost invariably insisted -on seeing the proof-sheets of the interview before -publication.</p> - -<p>From 1880 to 1883 Mr. Gould owned the <i>World</i>. -We have his own word (in an interview in the <i>World</i> -in June, 1883) that he purchased the control of the -paper from Col. Tom Scott, the famous Pennsylvania -railroad king, as a part of a negotiation which -included also the purchase of the Texas Pacific railroad. -Mr. Gould said that Col. Scott appealed to -him at Berne, Switzerland, in 1879, to take the road -and the paper off his hands. William Henry Hurlbert, -who was editor of the <i>World</i> under Gould, gave -a different version of the transaction, claiming that -the purchase from Col. Scott was the result of a negotiation -opened by Mr. Hurlbert with Mr. Gould.</p> - -<p><span class="pagenum" id="Page_276">276</span></p> - -<p>The <i>World</i> did not thrive under the ownership of -Gould. It did not possess public confidence. The -paper was used as an instrument in Gould’s Wall -street operations. Brilliant editorials could not redeem -it from the withering influence of Gould’s name. -Its circulation had shrunk to 15,000 when Mr. Joseph -Pulitzer purchased it in May, 1883.</p> - -<p>After church, charities, politics and the press, -the relations of Mr. Gould with his employes are interesting -to notice.</p> - -<p>Mr. Gould was not a believer in cheap men. In -the employment of help he regarded economy as -poor policy. In the various branches of his extended -business he aimed to secure the best men -possible, and he was never known to dicker over the -amount of pay. His conspicuous success in avoiding -the legal shoals through which he was obliged -to thread his way during his eventful career was due -mainly to the fact that he always had in his employ -the very best legal talent that money could procure.</p> - -<p>The story about Mr. Sage and his office boy has -been frequently told in Wall street, but it has never -appeared in print. Mr. Sage had an office boy who -had been with him for several years, was familiar -with his methods and moods, and understood perfectly -well the status of each of Mr. Sage’s customers. -The boy was alert, tactful and faithful, and in -due course of time received tempting offers to leave -Mr. Sage’s employ. He, however, stuck to Mr. -Sage for a long while, imbued with the false hope of -advancement.</p> - -<p><span class="pagenum" id="Page_277">277</span></p> - -<p>The boy’s salary was $15 a week, and when he -told Mr. Sage one day that he had been offered $25 -a week to go elsewhere, Mr. Sage coldly told him -that he had better go, and he went. Jay Gould -happened in Mr. Sage’s office a few days afterward -and casually remarked: “Why, where is John?”</p> - -<p>“Oh! he has left me,” said Mr. Sage. “He got -extravagant notions in his head and I had to let him -go. But I’ve got a new boy and I save $3 a week on -his salary.”</p> - -<p>“You do, eh?” remarked Mr. Gould, with undisguised -disgust. “Well, have you figured how much -you will lose on his blunders?”</p> - -<p>When Col. F. K. Hain was made general manager -of the elevated railroads in this city, he was -unknown to Mr. Gould. It was not long, however, -before the quiet little millionaire began to take a -lively interest in him. Col. Hain possesses qualities -which excited admiration in Mr. Gould’s breast. -One day, not many years ago, Mr. Gould, as president -of the Manhattan Railway Company, received -Col. Hain’s written resignation. In great surprise -he sent for Mr. Hain and asked him to explain the -reason for his resignation.</p> - -<p>“Mr. Gould,” said the colonel, “I have received -from the Reading Railroad Company an offer of the -position of general manager at a salary of $12,000 -a year, and in justice to myself and my family I do -not think that I ought to refuse it.”</p> - -<p>“How much are you getting here?” asked Mr. -Gould.</p> - -<p><span class="pagenum" id="Page_278">278</span></p> - -<p>“Six thousand five hundred dollars a year,” replied -Col. Hain.</p> - -<p>“Is the increase in salary your only reason for -your resignation?”</p> - -<p>“Yes, sir.”</p> - -<p>“Will you stay with us for $15,000 a year?” asked -Mr. Gould.</p> - -<p>“Certainly,” responded Col. Hain.</p> - -<p>“Very well, let it be so,” said Mr. Gould. “And, -Colonel, I am perfectly satisfied with your work. -Never let a question of money come between us.”</p> - -<p>The loyalty of S. S. H. Clark, general manager -of the Missouri Pacific and president of the Union -Pacific, to Mr. Gould has been the subject of frequent -comment. Mr. Clark is by no means a low-priced -man, and the fact that he has long been one of Mr. -Gould’s trusted lieutenants means that he has not -worked for low pay.</p> - -<p>It is related that the Atchison people once tried -to get Mr. Clark to enter their employ by offering -him an advance of $10,000 on the salary the Missouri -Pacific company was giving him. Mr. Clark -promptly refused the offer and said nothing. Mr. -Gould, however, heard of the matter from other -sources, and on the Christmas day following Mr. -Clark received a check for $50,000 with a short note -which read: “A merry Christmas to my loyal friend.—Jay -Gould.”</p> - -<p>“During the big strike troubles in the Missouri -Pacific,” said one broker, “one of the employees who -stood by the company was shot and killed. I entered<span class="pagenum" id="Page_279">279</span> -Mr. Gould’s office a few days later and found -him making out a check. As I approached the desk -I saw that the check was for $5,000, drawn to the -order of the widow of the murdered man. Mr. -Gould quickly turned the paper face downward.</p> - -<p>“‘You are too late, Mr. Gould,’ I said. ‘I unintentionally -read the check.’</p> - -<p>“He smiled a little as he quietly remarked, ‘We -must look out for those who stand by us.’”</p> - -<hr /> - -<div id="toclink_280" class="chapter"> -<p><span class="pagenum" id="Page_280">280</span></p> - -<h2 class="nobreak" id="CHAPTER_XX">CHAPTER XX.<br /> - -<span class="subhead">A CHAPTER OF ANECDOTES.</span></h2> -</div> - -<p class="drop-cap"><span class="smcap1">While</span> it is true that Gould loved to envelope -his transactions in mystery, and was a master -of the art of keeping silence, and though during -most of his life he was engaged in financial intrigues -and occult speculations, yet the main facts of his -life can be found in the official records of law cases -and the numerous legislative and congressional -investigations that were held on many of his transactions. -The facts of this volume are not to be -understood as doing Mr. Gould an injustice, for -almost the worst things that are said about him are -the ones to which he himself testified under oath.</p> - -<p>The greatest financial transaction ever consummated -in America is believed by many people to -have been the creation of the Union Pacific Railway -Company by Jay Gould. By a stroke of financial -genius at once bold and adroit, he consolidated into -that corporation other great railroad companies, -assuming control of all. It will be remembered that -the Union Pacific Railroad Company and the Union -Pacific Railway Company are two distinct corporations. -The former was the original company.</p> - -<p>It was in 1873 that Gould went into Union -Pacific. He bought about $10,000,000 of the stock,<span class="pagenum" id="Page_281">281</span> -had it bound into a book and put it in a safe, as he -told a friend at the time, “for his wife and family as -an investment.” In 1878 Gould conceived the idea -of a grand <i xml:lang="fr" lang="fr">coup</i>, and this was carried out so successfully -that in sixty days he had made terms which -netted him about $21,000,000 in profits.</p> - -<p>He first ran over to Amsterdam from London, -arriving there late in the morning. At 10 <span class="smcap">A. M.</span> that -day he notified the Dutch bondholders of the Denver -Pacific that he would be pleased to meet them at 11 -o’clock. Promptly at that hour he met them, and -at 12 he left Amsterdam with his gripsack full of the -securities of the Dutch bondholders. By this means -he captured control of the Denver Pacific. Inside -of ten hours he bought out Commodore Garrison’s -interest in the Missouri Pacific. He bought out -ex-Governor Ames’ interest in the Central Branch -of the Union Pacific, and he had previously formed -a pool by which he acquired control of the Kansas -Pacific.</p> - -<p>One day the Union Pacific directors awoke to -the alarming discovery that Mr. Gould had dropped -out of their organization and was surveying a line -from Denver to Salt Lake City. The Kansas Pacific -was utterly worthless, the Central Branch had not -earned any money for years, the Denver Pacific had -been in very bad shape; but when the Union Pacific -directors discovered the extent of Mr. Gould’s combinations -they lost no time in boarding a special car -in Boston and rushing over to New York to see him -about it. They went up to Mr. Gould’s house and<span class="pagenum" id="Page_282">282</span> -were there gathered in by him on the consolidation -of the three roads, all of their stock being exchanged -at par and merged into the new Union Pacific Railway -Company as distinguished from the Union Pacific -Railroad Company.</p> - -<p>This incident formed one of the subjects of -inquiry committed to the Pacific Railroad Commission -in 1887. The members of the commission -appointed by President Cleveland consisted of Gov. -Pattison, of Pennsylvania; E. Ellery Anderson of -this city, and David Littler, of Illinois.</p> - -<p>The Union Pacific railroad and the Kansas Pacific -railroad companies had received government subsidies -in bonds and lands. The bonds were received -upon the stipulation that the companies would -pay at par and accumulated interest upon their -maturity. The first of these bonds will mature in -1895. An application had been made by the Pacific -railroads to Congress to extend the time of payment, -and this commission was appointed to report -upon that matter and incidentally to furnish Congress -with information relative to these deals which -had affected the status of the corporations.</p> - -<p>The commission began its sittings in this city, at -No. 10 Wall street. A large number of railway magnates -intimately connected with the Pacific railroads -were first examined, including Russell Sage and -Sidney Dillon. They were examined particularly -with a view to finding out exactly what had taken -place when the Union Pacific railway was created. -They seemed to know nothing about the matter.<span class="pagenum" id="Page_283">283</span> -At every point the well-directed questions of the -inquirers were adroitly turned aside. The witnesses -did not know or could not remember. No light had -yet been thrown upon the subject under examination. -But the great witness of all was reserved for -the last. This was Jay Gould. He knew it all, but -the great question was, “Would he tell?” Nobody -believed that he would tell voluntarily the facts -relating to his connection with the government -interest in the matter, but it was believed that a -severe and searching cross-examination would compel -him to divulge some of the facts.</p> - -<p>An immense amount of labor was gone through -with in anticipation of the time when Jay Gould -should take his seat in the witness chair. Men on -the inside and familiar with the lines along which -the inquiry should be directed devoted weeks to the -study of figures and the procurement of papers upon -which to base the questions which should be asked -of Mr. Gould. Dozens of questions on the same -subject were prepared. If he answered one question -one way he was to be asked a certain question, and -if he answered another way he was to be asked -another question. In this way it was believed when -Mr. Gould took his seat that the beginning of a long -struggle was at hand.</p> - -<p>That was on May 17, 1887. Mr. Gould wore a -plain pepper and salt suit and a shabby silk hat. -The examiners, all ready to level their batteries of -questions at him, were dumbfounded when the first -questions were asked and Mr. Gould blandly stated<span class="pagenum" id="Page_284">284</span> -his willingness and desire to afford all the information -in his power. He seemed anxious to withhold -no facts, to evade no questions, and to help the members -of the commission in their work.</p> - -<p>There being some uncertainty as to the exact -route of some of the roads in question, Mr. Gould -even took out of his pocket a little map and kindly -enlightened the members of the commission as to -the various localities, and said: “I had anticipated -that possibly you might want to know what had been -my holdings of various securities relating to this -transaction, and so I instructed my bookkeeper to -draw off a statement, which I now submit to you.” -He then produced a little memorandum covering -about sixteen lines of writing, which covered all the -facts and gave the cue to every feature of the transaction. -Mr. Gould said he had kept books of all his -transactions.</p> - -<p>Q. Where are the books? A. I have them.</p> - -<p>Q. Where? A. In my possession.</p> - -<p>Q. Are they at the service of the commission? -A. If they desire them, with the greatest of pleasure.</p> - -<p>This willingness to show the books created a profound -sensation. Railway magnates worth many millions -and controlling thousands of miles of road had -one after another followed each other to the stand -only to show that Gould was the one who pulled the -strings, that they did not know what his intentions -were in regard to the commission, and that he made -up his mind upon a certain line of policy without -consulting them. Many of these magnates were in<span class="pagenum" id="Page_285">285</span> -the room and they sat with open mouths and plainly -evinced their astonishment when they saw Mr. -Gould giving up the hitherto carefully guarded facts. -Nothing more plainly showed the absolute mastery -of Jay Gould over all the other railway magnates of -the country.</p> - -<p>Mr. Gould had several “doubles” who were constantly -being mistaken for him.</p> - -<p>Broker Sam Leopold, of No. 84 Broadway, for -several years was known as Gould’s double, but -about a year ago he got tired of the distinction and -had his beard cut to a point. During the campaign -of 1884 he was offered $20,000 to impersonate Mr. -Gould. Conspiring brokers proposed that he smear -blood on his face and roll on the sidewalk near the -corner of Broad and Wall streets. Confederates -were to be on hand to keep the crowd back till an -ambulance arrived, and to say at intervals: “That’s -Jay Gould; he’s fatally injured.”</p> - -<p>Further details of the plan were to have a carriage -near Chambers street hospital for the purpose -of taking “Mr. Gould” to his house. Of course Leopold’s -remarkably close resemblance to Gould would -be sufficient to make the scheme work well, especially -as a man was to have been posted at Irvington -to telegraph that the millionaire was in his country -home. Then the telegraph wires were to be -“grounded” for a few hours. The tremendous excitement -would naturally depress the Gould stocks, -and, in sympathy, about everything would go down -with a rush. The schemers were to take advantage<span class="pagenum" id="Page_286">286</span> -of this by selling short, and they expected to have -at least from 10 to 2 o’clock in which to work this -peculiarly daring manipulation of the market.</p> - -<p>By the time the truth would be known the bold -plotters would turn and go long of the market, on -the recovery from the temporary shock, and at least -two or three good-sized fortunes were expected to -be realized by the double deal. Sam reluctantly -declined the tempting offer. Although he wanted -the $20,000 awfully bad, he feared that he might be -mobbed after the fright was over, and so the scheme -fell through.</p> - -<p>Leopold knew Gould very well, and they delighted -to meet and look at each other. It is related -that whenever Sam discovered a new gray hair in -his whiskers he would hurry to Mr. Gould, only to -find that the millionaire was also keeping tab on his -white hairs, and the two accounts tallied exactly.</p> - -<p>Some years ago Mr. Gould went to the Rocky -mountains, where he wanted some surveying done -in the neighborhood of Black Hawk in Colorado. -He employed a surveyor and described the work he -wanted done. The Indians were rather troublesome -at that time and the surveyor said:</p> - -<p>“I will have a good chance of getting scalped.”</p> - -<p>“Well,” replied Mr. Gould, “I want this work -done, and I want to know if you will do it.”</p> - -<p>“It will be a bad thing for my family if I am -killed,” said the man, “but I’ll undertake the work.”</p> - -<p>“How much money would it take to make you -independent out here?” asked Mr. Gould.</p> - -<p><span class="pagenum" id="Page_287">287</span></p> - -<p>“I’d be well off if I had $5,000,” replied the surveyor.</p> - -<p>The surveying was done, and one day, some -months later, Mr. Gould asked Mr. Morosini what -the surveyor’s name was and directed him to send the -man a check for $5,000, with the remark:</p> - -<p>“We’ll make him the richest man in Colorado.”</p> - -<p>One of the stories told of Mr. Gould to illustrate -his determination to die a rich man whatever happened -was this: In 1884, when it was ascertained that -Mr. Gould was in financial danger, he took from -his safe $11,000,000 worth of stock of the Manhattan -and the Missouri Pacific railroads and stowed it away -in an iron box, which he locked and sealed.</p> - -<p>He resolved that that box should never be -opened until after his death, and that no matter -what happened the securities should not be -touched. He carried the box, it was said, to the -vaults of a safe deposit company, where it was -locked up, and the particular vault in which it was -placed was sealed, too. Instructions were given to -the officers of the company that the seal on the -vault was not to be broken until after his death, and -then only in the presence of all of his executors.</p> - -<p>Ex-Judge John F. Dillon knew Mr. Gould intimately. -He first met the financier in 1879, and was -his legal adviser in many of his undertakings.</p> - -<p>“There were many distinct characteristics about -Mr. Gould,” said Mr. Dillon. “I never knew him to -utter a profane word, and he was as delicate and -sensitive in temperament as a woman. Mr. Gould<span class="pagenum" id="Page_288">288</span> -wrote and spoke capital English, but he never wrote -a word that was not necessary. Judge Usher, who -was Secretary of the Interior under Lincoln, an able -and great lawyer, once said to me that he had -bought a railroad for Mr. Gould, or in his interest, -and had written out a contract covering two or three -pages of foolscap. The judge, in telling of the -incident, said: ‘I sent the contract, which I considered -a thorough document, to Mr. Gould, and he -almost immediately returned it written out on a half -page of paper of the same size. When I got the -document and found it perfect in its condensed -form, I felt ashamed of myself.’ Mr. Gould was so -self-reliant that he had little use for lawyers. He -was his own negotiator and contract maker. When -he bought the Iron Mountain road he showed me, -the next day, a contract for that great purchase. It -was a contract written out in his own handwriting -on less than two pages of social note paper.</p> - -<p>“He concluded the contract of the purchase of -the Missouri Pacific without consulting his lawyers. -When shown the contract the next day, his counsel -told him he had bought a big lawsuit, and that title -to the whole property was in question in the Supreme -Court of the United States. He simply said, ‘I have -given my check for $3,700,000, and the thing is -closed. The seller would laugh at me if I went back -and expressed a desire to rescind.’ He thereupon -directed his attorneys to take charge of the case and -try to sustain the title of the property bought, which -after years of litigation they did.</p> - -<p><span class="pagenum" id="Page_289">289</span></p> - -<p>“But great as Mr. Gould was as a financier and -railway manager, he would, if bred to the bar, have -made a greater lawyer. That is a fact. I have seen -him greatly provoked, but never saw him lose his -temper or utter a threat. Nevertheless, he had a -good memory, both for benefits received and injuries -done. He was probably, in the language of -Dr. Johnson, ‘a good hater without loquacity and -pomposity.’”</p> - -<p>A popular error about Jay Gould is the notion -that he was invincible. In 1866 a promissory note -for $500 with his name went a-begging round Wall -street at a heavy discount, yet he left a fortune estimated -at $100,000,000. If Gould had died poor, -what would have been the general verdict on his -career? And yet, only eight years ago he was on -the verge of failure. This was after the panic of -May, 1884, one of the few times that he was tempted -into the stock market as a speculator in order to -hold up the price of stocks with which he was -burdened.</p> - -<p>The late Charles F. Woerishoffer, Henry N. -Smith, and other operators were united in a combined -effort to bear the securities which Gould was carrying. -He had supported them for a time by obtaining -sterling bills, giving his securities as collateral -and then converting the bills into cash. But sterling -loans, like all others, come to maturity; the -bears were as unscrupulous as himself, bold and -skillful and persistent. Gould’s Western Union fell -to 49 and his Missouri Pacific to 62. He was beaten.<span class="pagenum" id="Page_290">290</span> -One morning he had his lawyers execute an assignment -of his property, and on the following day—a -beautiful Sunday morning—his yacht went down to -Long Branch, where the bear operators were summering. -Gould’s emissaries landed and held a conference -with his foes. They bore his ultimatum—a -copy of the assignment and the statement that unless -the bears made terms with him he would on -the following morning file the assignment and give -public notice that he was unable to meet his engagements.</p> - -<p>At that time he was supposed to be borrowing -some $20,000,000, and his failure would create a -bigger panic than the one the street had just passed -through. Many of the firms with which the bear -combine had “short” contracts outstanding would -doubtless fail, and in the general crash the successful -bears themselves might be heavy losers. After a protracted -conference the bears agreed to “let up” on -Gould on condition that he should turn over to them -50,000 shares of Western Union at the current -market price, $50 per share. This enabled them to -make delivery of the shares they had sold at high -prices. In speaking of this “deal” the following -day, one of the bears expressed his confidence that -Gould would have to fail anyhow—the help he received -would be transient in its effect as a glass of -brandy given to a dying man.</p> - -<p>He was wrong. He underestimated the fertility -of resource in Gould and his associates.</p> - -<p>Many of the men in the financial quarter of New<span class="pagenum" id="Page_291">291</span> -York City the day of his death devoted their time to -forming estimates of Mr. Gould’s character as a man -and relating anecdotes of his life. In reference to -the general subject under discussion, Col. Henry T. -Chapman, the art connoisseur of the Stock Exchange, -said:</p> - -<p>“Gould’s art collection was little known, for he -rarely ever figured personally in buying pictures, -and went so little into social life that the public had -no knowledge of his gallery. It is very choice, -however, consisting of about one hundred paintings. -Many of them are representative works of -the Barbizon and modern French school. He has -one of the finest examples of Corot in the country, -and masterpieces by Rousseau, De Neufville and -others.</p> - -<p>“I purchased for him at the Stewart sale the -finest example of Knaus in the country. It is a -famous work known as ‘Knaus Children,’ and cost -$25,000. Works by that artist have brought higher -prices in this country, but no one has a finer example. -This illustrates one thing that I would like to -say about Mr. Gould. He did not buy a painting on -account of its price, but because he appreciated its -beauties. He had a fine, a highly cultivated artistic -sense, and showed a wonderful appreciation of color, -tone and treatment in a picture.</p> - -<p>“He knew the inspirational works of an artist -from the mediocre productions, and showed a nice -discrimination in his selections. He never bought -a picture for a household decoration nor to fit a<span class="pagenum" id="Page_292">292</span> -recess in the wall, but for the love of the art it displayed -and the enjoyment it gave him. His was the -true artistic spirit.”</p> - -<p>“The quality for which I most greatly respected -Mr. Gould,” said an acquaintance, “was his consideration -for others. This may seem a strange quality -to attribute to a man who is esteemed a ‘wrecker’ -by nine-tenths of Wall street men, but it was the -thing that I often remarked in a long personal -acquaintance with the man.</p> - -<p>“It was once my pleasure to accompany him and -some members of his family to Florida. His son -George and a young companion were of the party. -When we arrived at Palatka, Fla., Mr. Gould found -that a suite of apartments had been reserved in -Orvis’ hotel for each member of the party.</p> - -<p>“This was not unusual on the trip, but it happened -that at Palatka there were many tourists -arriving by the same train who were unable to obtain -accommodations in consequence of the allotment of -rooms to the Gould party. Mr. Gould took in the -situation at once. ‘See here,’ said he to the proprietor, -‘why do you give me all these rooms? Others -need accommodation as well as I.’ ‘But,’ said the -man, I——’ ‘That’s all right,’ replied Mr. Gould, -‘I know all about that. These people need rooms -and should have them, and if there are not enough -here for the ladies just send those boys of mine over -to the barn.’</p> - -<p>“George Gould and his companion,” said the<span class="pagenum" id="Page_293">293</span> -man in conclusion, “slept that night in an outbuilding, -scarcely a barn, but little better.”</p> - -<p>“Mr. Gould,” said President Norvin Green, of -the Western Union Telegraph Company, “was a man -who, while he governed a corporation carefully, was -always ready to reward merit and the faithful performance -of duty. I remember at one of our annual -meetings one of our department men, in making his -report, appended thereto a request that his salary -be raised. He asked for a large increase—fifty per -cent. I think, from $2,400 to $3,600 a year. The -Committee on Expenses was not inclined to grant -the request. They were willing to give him a slight -increase, but nothing like he asked.</p> - -<p>“There was something peculiar about his work—I -don’t recollect what now—but it led to a somewhat -long debate. This was terminated by Mr. -Sage, who said as he always did when in doubt: -‘Well, we will leave the matter to Mr. Gould.’ When -Mr. Gould came in the matter was referred to him -with the explanation of the debate and the points -of difference. Mr. Gould took up the report and -read it through. Then he read the request for an -increase. When he had finished he turned and said: -‘Gentlemen, is there any of you who would like to -do the work that man has done for $2,400 a year?’</p> - -<p>“Every man shook his head. ‘Neither would I,’ -remarked Mr. Gould. ‘If he can do all this work -he is certainly entitled to this $3,600 he asks, and we -get off cheaply at that in having a faithful, honest -and most capable employe.’”</p> - -<p><span class="pagenum" id="Page_294">294</span></p> - -<p>Among other stories told of Mr. Gould are the -following:</p> - -<p>Some years ago he was tendered the nomination -of Rex, the king of the Mardi Gras carnival in New -Orleans. He declined this, of course, and when -asked jokingly by a friend why he had put ambition -away, remarked dryly:</p> - -<p>“Well, I don’t think the nomination was entirely -disinterested or that I would have reigned supreme. -I have always heard that there was ‘a power behind -the throne,’ and in this case I am sure of it.”</p> - -<p>With this he thrust his hand into his pocket and -drew forth the letter notifying him of his selection -to the high office. Enclosed in it was a bill for -$1,000, the price of the honor. The functions of Rex -that year were performed by a St. Louis brewer.</p> - -<p>Mr. Gould could never accustom himself to take -with equanimity the criticism and abuse that were -heaped upon his head. He was exceedingly sensitive -of ridicule and loathed the term “Little Wizard,” -by which he was not infrequently designated by the -Wall street men and the papers. He often heard -himself most grossly abused. Once, it is related, -during a particularly vexatious series of delays to a -crowded elevated railroad train in which Mr. Gould -happened to be, a tall, muscular individual broke -out into a torrent.</p> - -<p>“It’s ridiculous,” he shouted. “The accommodations -on this road. Absurd! Scandalous! That -man Gould won’t put on an extra car. Valuable -franchise for a song, but an extra train means a dollar<span class="pagenum" id="Page_295">295</span> -less or so in profits. It’s a shame, and I’d like -to have that little rat Gould here to tell him and -then pull his nose.”</p> - -<p>Mr. Gould stood by the blusterer’s side almost -crushed in the crowd. He said nothing, however, -and the man continued his outburst until he reached -a station, where he left the car, after pronouncing a -final malediction upon Gould’s head.</p> - -<p>“Well, well,” said Mr. Gould, turning to an -acquaintance, “that was hot, wasn’t it? I was very -much annoyed at the delays and crowds myself and -I did want to tell the man that I was not responsible -for the limited number of trains. If he had -not been so abusive, I would have told him that it -was all Sage’s doings. He advised taking the extras -off and I suffer for it. I do wish Sage could have -been here, for I think I would have told that fellow -all about it and let Sage get his deserts.”</p> - -<p>An illustration of the rush and hurry of Jay -Gould’s life is told among the Pennsylvania mountaineers -in the region round about Gouldsboro.</p> - -<p>Mr. Gould’s father was superintendent of the -tannery at Canadensis, which was the property of -his son, and received therefor the salary of $20 per -week, which in those parts placed him high up in -the category of the well to do. Canadensis is four -and a half miles from the railroad station at Cresco -on the Delaware, Lackawanna and Western railroad, -and the road between is a rough mountain -road not fitted for fast speeding.</p> - -<p>When the old man died Jay Gould was summoned<span class="pagenum" id="Page_296">296</span> -by telegraph. He reached Cresco in a great hurry. -Business matters were pressing and he had no time -to waste. He hired a rig and told the owner to drive -him over to Canadensis and back in time to catch -the next train back to New York.</p> - -<p>The owner shook his head.</p> - -<p>“Go ahead,” said Gould. “I’ll pay the damage.”</p> - -<p>The horse was put to its utmost speed and Gould -had just one hour and a half to devote to preparations -for his father’s funeral. Then he drove back -to Cresco and caught his train, but he drove so fast -that the horse died from overexertion. Gould made -good the value to the owner without complaint.</p> - -<p>Pacific Mail was always one of Mr. Gould’s speculative -favorites. He had been more or less directly -identified with it ever since the time when A. B. -Stockwell was its picturesque controller. Stockwell -is the historic gentleman who, in reciting the story -of his Wall street career, has graphically put in this -way:</p> - -<p>“When I first came to Wall street I had $10,000, -and the brokers called me ‘Stockwell.’ I scooped -some profits, and it was ‘Mr. Stockwell.’ I got to -dealing in a thousand shares at a time, and they -hailed me as ‘Captain Stockwell.’ I went heavily -into Pacific Mail, and folks lifted their hats to ‘Commodore -Stockwell.’</p> - -<p>“Then one day Jay Gould came along, smash -went Pacific Mail and I went with it. They did not -call me ‘Commodore Stockwell’ after that. Then it -was: ‘The red-headed son of a gun from Ohio.’”</p> - -<p><span class="pagenum" id="Page_297">297</span></p> - -<p>In the course of his Pacific Mail campaigning -Mr. Gould was much more frequently a bear, than a -bull. He used to say he had never found but one -unerring bull point on Pacific Mail, and that was to -report that the company had lost one of its ships. -Perhaps his biggest drive at this stock was when he -discomfited Leonard Jerome and played smash with -the uptown corps of speculators who made up what -was a dozen years ago known as “the Fifth Avenue -Hotel party.”</p> - -<p>Just after that famous clean-out Leonard Jerome -went abroad. In the course of his meanderings he -came upon the famed Temple of Karnak.</p> - -<p>“There, Mr. Jerome,” quoth a companion, “are -the most remarkable ruins in the world.”</p> - -<p>“No; oh, no; don’t tell that to me,” answered -Leonard Jerome feelingly; “you ought just to have -seen Pacific Mail last summer!”</p> - -<p>Mr. Gould did not have any of that quality -which descriptive persons call “presence.” No -stranger would have ever been impressed by any -mere look at him that he was much of a man. He -was courteous always. In public he was never -known to get mad, or, indeed, even to say a rude -thing, except it be on one occasion, when, with -more or less quietness, he remarked to an ambitious -young gentleman who more recently became a -figure in Wall street:</p> - -<p>“You make me feel very sorry that I am so busy. -If I had time I’d really enjoy taking a day off to -send you to State prison.”</p> - -<p><span class="pagenum" id="Page_298">298</span></p> - -<p>Of course, Mr. Gould was in lots of scenes where -passion ran high. Everybody in Wall street recalls -the historic day after Black Friday when Mr. -Gould’s old partner, Henry N. Smith, shaking his -finger in Mr. Gould’s face, shouted:</p> - -<p>“I’ll live to see the day, sir, when you have to -earn a living by going around this street with a -hand organ and a monkey.”</p> - -<p>“Maybe you will, Henry, maybe you will,” was -the soothing response. “And when I want a -monkey, Henry, I’ll send for you.”</p> - -<p>In the book of Mr. Clews quoted before, is found -the following: “There is a story told with several -variations, in regard to a sensational interview -between Mr. Gould and Commodore Vanderbilt. -The scene is laid in the parlor of the commodore’s -house. It was about the time that the latter was -making desperate efforts to get a corner in Erie, and -at that particular juncture when having been defeated -in his purpose by the astute policy of the able triumvirate -of Erie, Gould, Fisk and Drew, he had applied -to the courts as a last resort to get even with them.</p> - -<p>“They had used the Erie paper-mill to the best -advantage, in turning out new securities of Erie to -supply the Vanderbilt brokers, who vainly imagined -that they were getting corner in the inexhaustible -stock. Mr. Vanderbilt was wild when he discovered -the ruse, and had no remedy but law against the perpetrators -of this costly prank. These adroit financiers -usually placed the law at defiance, or used it to their -own advantage, but this time they were so badly<span class="pagenum" id="Page_299">299</span> -caught that they had to fly from the state, and take -refuge in Taylor’s hotel in Jersey City.</p> - -<p>“It seems that during their temporary exile beyond -the state, Gould sought a private interview one night -with the commodore, in the hope of bringing about -conciliatory measures.</p> - -<p>“The commodore conversed freely for some time -but in the midst of his conversation he seemed to be -suddenly seized with a fainting spell, and rolled -from his seat onto the carpet, where he lay motionless -and apparently breathless.</p> - -<p>“Mr. Gould’s first impulse was to go to the door and -summon aid, but he found it locked and no key in -it. This increased his alarm and he became greatly -agitated. He shook the prostrate form of the commodore, -but the latter was limp and motionless. -Once there was a heavy sigh and a half-suffocated -breathing, as if it were the last act of respiration. -Immediately afterward the commodore was still and -remained in this condition for nearly half an hour. -Doubtless this was one of the most anxious half -hours that ever Mr. Gould has experienced.</p> - -<p>“If I were permitted to indulge in the latitude of -the ordinary storyteller, I might here draw a harassing -picture of Mr. Gould’s internal emotions, -gloomy prospects in a criminal court and dark forebodings. -His prolific brain would naturally be racked -to find a plausible explanation in the event of the -commodore’s death, which had occurred while they -were the sole occupants of the room; and at that time, -in the eyes of the public, they were bitter enemies.</p> - -<p><span class="pagenum" id="Page_300">300</span></p> - -<p>“I can imagine that, in the height of his anxiety, -he would have been ready to make very easy terms -with his great rival, on condition of being relieved -from his perilous position. It would have been a -great opportunity, if such had been possible, for a -third party to have come in as a physician, pronouncing -it a case of heart disease. No doubt Mr. Gould -would have been willing to pay an enormous fee to -be relieved of such an oppressive suspicion.</p> - -<p>“The object of the commodore’s feint was evidently -to try the courage and soften the heart of Mr. -Gould, who never seemed to suspect that it was a -mere hoax. His presence of mind, however, was -equal to the occasion, as he bore the ordeal with fortitude -until the practical joker was pleased to assume -his normal condition and usual vivacity. If Mr. -Gould had been a man of common excitability, he -might have acted very foolishly under these trying -circumstances, and this doubtless would have pleased -his tormentor intensely.</p> - -<p>“There is a humorous story told of Mr. Gould’s -first yachting experience, which was recently published -in the Philadelphia <cite>Press</cite>, and its veracity -vouched for by a living witness to the event. It is -characteristic of Mr. Gould in some special respects, -and runs as follows:</p> - -<p>“At the residence of a club man, whose reputation -as a <i xml:lang="fr" lang="fr">raconteur</i> is nearly as great as that of his -Burgundy, I noticed a pretty model of a jib and -mainsail yacht. Replying to my admiring inquiry -the club man explained:</p> - -<p><span class="pagenum" id="Page_301">301</span></p> - -<p>“‘That is the model of a boat upon which were -passed some of the sunniest hours of my life. She -was owned by one of the Cruger family, of Cruger-on-the-Hudson, -and has an added interest from the -fact that upon her Jay Gould acquired his first yachting -experience, and so eventful a one that I’ll bet he -remembers it to this day.</p> - -<p>“‘Crugers—one of the oldest and best known -families in the state, intermarried as they are with -other Knickerbockers like the Schuylers, Livingstons -and Van Rensselaers—owned all the land in the -neighborhood of the station subsequently named -after them. A portion of this property consisted of -a brick-yard, which was rented to the son of old -Schuyler Livingston. It was in 1853 or 1854, and -Jay Gould had just failed in the tannery business in -Pennsylvania.</p> - -<p>“Young Livingston’s leased brick-yard wasn’t -paying, and he concluded that he needed a shrewd -business man at his head. He advertised for a -partner, and one day there appeared in response -a small, dark gentleman, looking scrupulously neat -in his black broadcloth. He gave his name as Jay -Gould. Pending negotiations, Mr. Gould became -the guest of the Crugers at the old mansion on the -hill. Every effort was put forth to entertain him -during his stay, the more as he seemed to regard -favorably a partnership with their young friend.</p> - -<p>“One day Mr. Cruger invited Gould to a sail to -Newburgh, and got ready his yacht, of which that -model is the reduction. Several of us youngsters<span class="pagenum" id="Page_302">302</span> -were taken along to help work the boat. Eugene -Cruger, a nephew of the yacht’s owner, was one of -us. Peekskill was reached, and the whole party -went up to the hotel.</p> - -<p>“All the way up the river we had noticed that -Mr. Gould was uneasy, shifting about constantly on -the deck, where he sat, and squirming and twisting -as if to find a softer spot. Nothing was said about -it, of course, but when we landed Mr. Gould himself -furnished the explanation. From the heat of the -sun, the yellow paint on the boat’s deck had become -baked and chalky, and it was not long before the -little man discovered that the dry powder was coming -off on his trousers. Hence his uneasiness. He concluded -by saying that he was afraid his broadcloth -nether garments would be, if they were not already, -ruined, and was determined to abandon the trip and -return by rail. This Mr. Cruger would not hear of, -and promised to obviate the difficulty. We all adjourned -to a general store, and Cruger bought for two -shillings and a half, a pair of jean overalls. These -Mr. Gould put on when we went aboard the boat, -and expressed his unqualified satisfaction with the -result.</p> - -<p>“On our trip back from Newburgh, we again -called at Peekskill, and once more the party started -for the hotel. This time Mr. Gould declined the -invitation to take something, and preferred to remain -on board. About an hour was spent in the hotel, -when suddenly Mr. Cruger remembered that he -wanted some white lead, and young Eugene Cruger<span class="pagenum" id="Page_303">303</span> -and I went with him to the store to carry it down to -the boat.</p> - -<p>“‘How’d the overalls work, Mr. Cruger?’ was the -salutation of the storekeeper. Then before answer -could be returned, he added, admiringly: ‘That friend -o’ yourn is purty shrewd.’</p> - -<p>“‘Who, Mr. Gould? Yes, he appears to be a -thorough business man.’</p> - -<p>“‘Well, I sh’d say so! He can drive a mighty -sharp bargain.’</p> - -<p>“‘Drive a sharp bargain?’ repeated Cruger, all at -sea. ‘What do you mean?’</p> - -<p>“‘Why, don’t you know he was in here ’bout -three-quarters of an hour ago and sold me back the -overalls you bought for him?’</p> - -<p>“‘Thunder, no!’ roared Cruger in astonishment.</p> - -<p>“‘Well, sir, he jest did that. He kem in here, -tole me he’d no fu’ther use for ’em, that they was as -good as when I sold ’em, an’ after we’d haggled -awhile he ’greed ter take two shillin’ fur ’em, which -I paid him. Here’s the overalls.’</p> - -<p>“I can shut my eyes now,” went on the jolly club -man, with a hearty laugh, suiting the action to the -words, “and call up Mr. Cruger’s face with its -mingled expression of amazement and incredulity. -He left the store in silence. Not until we had nearly -reached the boat did he speak. Then he only said, -‘Boys, I’ll fix him for that!’ We reached home -without any reference to the incident. On the -way back Mr. Gould sat upon his pocket handkerchief.</p> - -<p><span class="pagenum" id="Page_304">304</span></p> - -<p>“The same night Mr. Cruger perfected his plan. -Next day Mr. Cruger proposed a fishing party. Mr. -Gould declined to go. He had concluded, he said, -not to take an interest in young Livingston’s brick-yard, -and would return to the city on the afternoon -train. A business engagement, involving quite a -sum of money, had to be kept. His host argued -with him, but for a time to no purpose. The saturnine -little man had a tremendous amount of determination -in his composition. Finally a compromise -was effected, it being agreed that he should put -Gould off at a station in time to catch the train. -That he must catch it without fail, he most emphatically -declared.</p> - -<p>“The day passed on and we were off Sing Sing, -when we saw the smoke of the coming train. We -had been running free before the wind, but immediately -Mr. Cruger, who was at the stick, shoved it -down; we hauled in on the sheets and headed for -the Eastern shore. Mr. Gould was by this time on -his feet, clinging to the windward coaming, the deepest -anxiety pictured on his face. Just there the -water shoals rapidly. We were within fifty feet of -the shore, opposite the railroad depot. The time -had now come for Mr. Cruger’s revenge.</p> - -<p>“‘Let go the main and jib sheets!’ he shouted. -‘Down with your board!’</p> - -<p>“Never was order more eagerly obeyed. The -sheets whizzed through the blocks, ready hands -slipped out the pin and jammed down the centerboard, -and in a second the yacht, with a grating shock<span class="pagenum" id="Page_305">305</span> -and shaking sails, came to a stand, fast on the sandy -bottom. There she was bound to stay until the -obstructing board was lifted again.</p> - -<p>“‘What’s the matter?’ exclaimed Mr. Gould, anxiously. -Of course he had not detected the ruse, for -he knew no more about the working of a yacht than -a sea cow does about differential calculus.</p> - -<p>“‘I’m afraid we’re aground,’ replied Mr. Cruger, -with a fine assumption of sadness. ‘Boys, get out -the sweeps and push her off.’</p> - -<p>“We struggled with the long oars in a great show -of ardor, while Gould watched us in breathless suspense, -between hope and fear. But as we had taken -care to put the sweeps overboard astern, the harder -we shoved the faster we stuck. The little man’s suspicions -were not in the slightest degree aroused and -he turned in despair to Mr. Cruger.</p> - -<p>“‘What shall I do!’ he almost wailed. ‘I’ve got -to catch that train!’</p> - -<p>“‘Then,’ replied the joker, solemnly, ‘you’ll have -to wade or swim.’</p> - -<p>“Already the train was in sight, two miles away, -and whatever was to be done had to be done quickly. -As I have said, there was plenty of grit in the embryo -railroad king, and quick as a wink he was out -of his sable clothes and standing before us clad only -in his aggressively scarlet undergarments. Holding -his precious broadcloth suit above his head, he -stepped into the water, which, shallow as it was, -reached to the armpits of the little gentleman. -Then he started for the shore, his short, thin legs<span class="pagenum" id="Page_306">306</span> -working back and forth in a most comical fashion as -he strove to quicken his pace. The station platform -was crowded with people, and very soon the strange -figure approaching them was descried. A peal of -laughter from 500 throats rolled over the water -to us, the ladies hiding their blushes behind parasols -and fans. The men shouted with laughter. Finally -the wader reached the base of the stone wall, and -for a moment covered with confusion and but little -else, stood upon the rock, one scarlet leg uplifted, -looking for all the world like a flamingo on the -shore of a Florida bayou, while the air was split with -shrieks of laughter, in which we now unreservedly -joined. Then came the climax of the joke, which -nearly paralyzed the unfortunate victim.</p> - -<p>“‘Haul on your sheets, boys, and up with the -board!’ was Cruger’s order. As the yacht gathered -headway and swept by within ten feet of the astonished -Mr. Gould, we laughingly bade him good-bye, -advising a warm mustard bath when he got home.</p> - -<p>“Then his quick mind took in the full force of the -practical joke that we had worked upon him, and -his dark face was a study for a painter. But the -train had already reached the station, taken on its -passengers, and the wheels were beginning to turn -again for its run to the city. As Gould scrambled -up the wall, his glossy black suit still pressed affectionately -to his bosom, the ‘All aboard’ had sounded -and the cars were moving. Every window was filled -with laughing faces, as he raced over the sand and -stones, and was dragged by two brakemen onto the<span class="pagenum" id="Page_307">307</span> -rear platform, panting and dripping. The last -glimpse we caught of him was as the train entered -the prison tunnel. Then, supported on either side -by the railroad men, he was making frantic plunges -in his efforts to thrust his streaming legs into his -trousers, as the platform reeled and rocked beneath -him.”</p> - -<p>It was once suggested to Mr. Gould that he had -been fairly successful in life, and the inquirer wanted -to know if Mr. Gould wouldn’t tell the secret of it.</p> - -<p>“There isn’t any secret,” said Mr. Gould. “I avoid -bad luck by being patient. Whenever I am obliged -to get into a fight I always wait and let the other -fellow get tired first.”</p> - -<p>Any student of the history of Mr. Gould’s career -in the corporation world will appreciate how again -and again he found this quality of patience a prime -investment. He never seemed to be in a hurry -about anything. One of his enemies has remarked -that during the last twenty years Jay Gould spent -$1,000,000 hiring lawyers and paying court fees to -accomplish nothing except to have lawsuits postponed.</p> - -<p>And now the great man is dead. For days after -his demise the public press was full of tales of his -career. On every editorial page have been resumes -of his life, and judgment upon him, either for -or against. Much has been found to say of him -that was good, and much that was evil. As a fitting -close to this biography, it is good to quote from the -New York <cite>World</cite>, which has published much of<span class="pagenum" id="Page_308">308</span> -interest regarding him. The paper indeed was not -his friend, but we have had much from his friends, -and this opinion probably agrees with that of more -persons than does any other:</p> - -<p>“Look back upon his wonderful career. As sometimes -an assassin is tracked by his footsteps in -the snow or by the drops of crimson that have fallen -from his fingers, dripping with the life blood of his -victim, so the life of Jay Gould can be traced by the -dark, deep stains it has left on the records of his -time. We see him leaving his father’s farm a penniless -but determined lad, clerking in a country store -by day and studying mathematics at night. We -follow him as he becomes a map-maker and goes -forth to survey his own and adjoining counties. We -see him hungry and unable to purchase a meal, -kneeling down by the roadside and repeating his -sister’s prayer. We see him strike his first bargain. -We see him win the confidence of Zadock Pratt, the -tanner. We follow him into the forests of Pennsylvania -and hear the sound of his ax as he fells the -first tree for a great tannery. We see him scheming -for the control of the property and finally forcing -out of the concern the man who had set him up in -the business. We follow him in his partnership with -Leupp, the old-fashioned and honorable merchant, of -New York, and see him again scheming to gain control -of the entire business. We see him entering, even -at this early day, into wild speculations that involved -his partner and threatened him with ruin. We -hear the click of the pistol with which Leupp in his<span class="pagenum" id="Page_309">309</span> -despair shot himself. We see Gould still scheming -and endeavoring to drive a sharp bargain with -Leupp’s daughters and heirs. We see him leading -a gang of ruffians to drive out of the tannery the -men who were endeavoring to protect it in the interests -of Leupp’s daughters. We hear the groans of -those who were wounded in that battle. We follow -the young adventurer to New York. We see him -buy his first railroad on credit and clear a handsome -fortune out of the operation. We follow him into -Wall street, where for twenty years he was to reign -as a king and master. We see him in Erie, first as a -follower of Daniel Drew and afterward as president. -We see him at Albany bribing senators. We see -him in New York purchasing judges, defying the law, -issuing millions of securities, not a dollar of which -represented legitimate expenditures. We see him -plundering the great property of which he was nominally -the trustee. We see him and his companion, -James Fisk, Jr., the gambler and defaulter in a series of -wonderful stock operations, cornering even their former -leader, Daniel Drew, and fighting with desperation -Commodore Vanderbilt. We see him organizing -the greatest and most dastardly financial conspiracy -the world has ever seen, laying its foundation in the -actual bribery of a member of the President’s family, -and in an attempt to involve in the speculation the -President himself—America’s greatest captain. We -hear the awful crash of Black Friday’s earthquake, -from which Gould, the arch conspirator, saved himself, -but in which hundreds were involved in ruin<span class="pagenum" id="Page_310">310</span> -and the nation in dishonor. We see him now driven -out of Erie by the indignant stockholders, headed -by Gen. Sickles, Gen. Dix and Gen. McClellan. We -see him arrested for appropriating the property of -the company of which he was president, and to save -himself we see him make a pretended restitution of -the misappropriated millions. We see him cornering -Northwest and raking in the wealth of his recent -Wall street partner. We can see him now fastening -his fingers on the great Union Pacific railroad, which -for ten years he controlled. We can see him betraying -his trust as trustee for Kansas Pacific mortgages, -for which he was obliged years after to plead the -statute of limitations in order to save himself from -prosecution. We see him securing control of the -Pacific Mail, the chief American steamship line. -We see him buying for a few million dollars from -Commodore Garrison the Missouri Pacific, ‘just as a -plaything,’ but which he afterward developed into -a great railroad system covering thousands of miles -of territory. We see him repeating his old Erie -tactics in Wabash and we can hear the stinging words -of an unpurchasable judge as he turns his dummy -receivers from power. We see him organizing an -opposition against Western Union until, the favorable -moment arriving, he secures control of the -company and by a series of extraordinary consolidations -make himself the head of a telegraph monopoly -with a system covering the United States and -crossing the Atlantic Ocean. We hear the crash of -another panic. There are moments when we think<span class="pagenum" id="Page_311">311</span> -the great speculator will fall—when, lo! we see him -calmly exhibiting his millions of securities to his -friends. Others fail, among them men who had been -his partners and agents, but he is safe. We see him -living in a palace on the Hudson and ploughing the -waters of the river and the ocean with the most -splendid yacht ever constructed. We see him at -home, the personification of domestic honor and -purity, a faithful husband and a kind father, and we -see him abroad, hated, feared and detested. Despite -his record, we find the power of his millions and of -the great properties he controlled felt in every direction. -He is a factor in elections. Candidates seek -him for favors. He dictates appointments to high -offices. Honorable men who would not repeat his -methods sit with him in boards of direction and are -identified with some of his enterprises. Nothing -that the fertile imagination of Balzac, Dumas or -Gaboriau ever conceived equals in dramatic incidents -and sensational developments the career of -this extraordinary man.</p> - -<p>“It will be observed that there were two Goulds—Gould -the man of affairs and Gould the man of -family. In all his domestic relations his life was -pure, his nature affectionate. No criticism can touch -him in his home life. There he was above reproach. -Toward the end of his life his dual nature seemed to -blend into one. He became more conservative in -business, more solicitous, apparently, of the good -will and good opinion of his fellowmen, more careful -to keep within the bounds of strict business<span class="pagenum" id="Page_312">312</span> -morality, less audacious in his methods. For should -it be forgotten that however much Gould’s public -career may be justly subject to criticism, much that -he did was indirectly for the public benefit? For -instance, he developed properties that enriched wide -sections of the country. No review of his career -would be complete without this acknowledgement.”</p> - -<p>Jay Gould will be remembered not for the good -that he has done, not for the happiness he has given, -but for the enormity of the fortune that he acquired. -If his heirs apply to better ends than he did, the -wealth that they have received from him, they may be -better remembered. If they should dissipate the -fortune, it might then fall into the possession of -those who would do good with it. As it has been -before, the life and fortune of Jay Gould have been -a constant example always in readiness to be -brought forward by those who find evil in our financial -system. It is to be hoped that better things -will now come from it.</p> - -<p class="p2 center">FINIS.</p> - -<div class="chapter"><div class="transnote"> -<h2 class="nobreak" id="Transcribers_Notes">Transcriber’s Notes</h2> - -<p>Punctuation, hyphenation, and spelling were made -consistent when a predominant preference was found -in the original book; otherwise they were not changed.</p> - -<p>Simple typographical errors were corrected; unbalanced -quotation marks were remedied when the change was -obvious, but several remain unbalanced.</p> - -<p>Illustrations in this eBook have been positioned -between paragraphs and outside quotations. In versions -of this eBook that support hyperlinks, the page -references in the List of Illustrations lead to the -corresponding illustrations.</p> - -<p>Page 68: “The ‘legal account, was of an -india-rubber character” was -printed that way, with a single quote mark and a -comma. Transcriber believes the comma may be a -misaligned closing single quote mark.</p> -</div></div> - -<div style='display:block; margin-top:4em'>*** END OF THE PROJECT GUTENBERG EBOOK THE WIZARD OF WALL STREET AND HIS WEALTH ***</div> -<div style='text-align:left'> - -<div style='display:block; margin:1em 0'> -Updated editions will replace the previous one—the old editions will -be renamed. -</div> - -<div style='display:block; margin:1em 0'> -Creating the works from print editions not protected by U.S. copyright -law means that no one owns a United States copyright in these works, -so the Foundation (and you!) can copy and distribute it in the United -States without permission and without paying copyright -royalties. Special rules, set forth in the General Terms of Use part -of this license, apply to copying and distributing Project -Gutenberg™ electronic works to protect the PROJECT GUTENBERG™ -concept and trademark. 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