Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1892-12-09

bad obtained control of the Harlem and
Hudson river roads, in addition to the
Albany line of steamboats,. and wanted
to get hold of Erie. He bought at
every opportunity. Drew. Fisk and
Gould laid plans to defeat him. Gould
engineered the scheme. Securities We're
issued by the buShel and then Wander
bilt resOrted to litigation. mil1nctions
were obtained to prevent Drew from
issuing stock, counter injunctionS were
obtained, and Judges all over the state
We're appealed to by both sides. It
was 4 time when. corruption OF the
rankest kind was rife and dnveloned
such men as Bernard and C,ir,,oHo.
who afterward were impeached fer
their connection with the affair Fin
ally IN issue Of $4,000 shares Of Erie
were authorized.
This settled Vanderbilt and he re-
tired from the fight with Il loss of
81, 100000. Warrants We're issued for
The arrest Of Drew, Fisk. Gould and
the other directors of Erie. but they
escaped by fleeing to jersey City with
the securities in their pockets. 1t is
said that &6.0O0O0D was carried over the
ferry in one coach. Erie was then in
corporated i'll New Jersey and New
York legislators We're bribed to 1egalizc
the new issue of $4,000 shares Of stock.
Peter :. Sweeney as receiver Of Erie
got $4,000 as his fee by order Of
Judge Bernard. 1t is said that Gould
went to Albany with 100000 in his
pocket for use in the lobby. He was
arrested and brought back to New
York and went back under the charge
of Il deputy sheriff, who LET him escape.
It came out afterward that William NJ
Tweed received 4 fee of $4,000 for
legal services for the Erie road while he
was a state senator The result of
this battle was that Drew took its
profits and withdrew from the manage
ment and Gould and Fisk came iii.
This was in 1865 Gould was first
president in that year and continued at
the head of the company until 1872.
Everybody supposed that Erie was
squeezed dry at that time. but Gould
and his friends SAW something in it
The fact that between 1868 and 1872
the period of the Gould administrati ton.
the debt of the railroad increased from
SG4OOO.OO0 to S115.OOO0OO shows what
they got ont of it, Drew sreculatcd in
Erie after Gould got in and before he
knew it he was cOrnered in earnest.
When he found he was in danger Of be-
ing ruined he went to Gould and plead
cd with him for help. Gould was MGR
CHESS and compelled his old enemy to
pay 81 800 900. which nearly bank
rIlpted him. and the old man never re-
covered from the blow Gould was
OuSted from Eric in 1879 by combina-
ton Of the English stockholders, who
had been badly nipped after they had
been deeOyed into investing in the
stock. After the Gould party went out
of Erie the company was found to be
very far over the verge Of bankruptcy
and for years afterward it was in the
hands of a receiver.
The gold conspiracy of 1860 which
ended with Black Friday, was one of
the most remarkable episodes of
Gould's career. 1t was engineered by
the firm of Smith, Gould and Martin.
Gould went about this scheme openly
and went about persistenly in Il move
to advance the price Of gold. During
the summer of 1869 President Grant
wrote a letter to Boutwell,. the sCcrc-
tary Of the treasury, expressing the
view that it was not wise thing TO
force down the price of gold. Could
had already purchased millions of gold
and the price had not advanced greatly.
A pool was formed to buy more. Gould
organized this, and was assisted in his
plans by tile fact that he owned the
Tenth National bank. In one day it
over certified Goulds checks to the
amount OF S7,5O0,O00. He had so or
60 brokers buying for him in the gold
room.
1t took a purchase of $50,000,000 to
raise the market from 1876 to 40 Then
Fisk and several other friends of Gould
came into the scheme and assisted him
by buying gold. When Gould heard of
this he was filled with CONSERVATION.
All the Gould brokers were supplied
with heavy orders and the excitement
began. Everybody was scrambling for
gold. Gould who appreciated the fact
that the game was UP, was quietly sell
ing while all his associates were buy
ing. The next day, Black Friday, came
the panic memorable in the annals of
Wall street. The most intense excite
mr. T1ny-oi1n1 At q NJ rn
and the price Of gold was run UP to
165. Suddenly the announcement came
that the treasury was selling freely and
within a short time the bottom dropped
out of the market. The panic stricken
crowd was as anxious to sell as it had
been to buy, and scenes of the widest
confusion ensued. When it was learn
ed that Gould had gone back on his
friends and sold out, the most bitter in
dignation was expressed, and it would
have gone hard with him if the angry
mob had been able to lay it's hands
upon him. He knew how to keep out
of the way until the excitement had
passed. He was not seen in the streets
for a long time afterward.
After securing control Of the Erie he
next made large purchases Of the stock
of the Union Pacific, the Wabash, the
Texas Pacific, the st. Louis and North
ern, the Missouri Pacific and the Mis-
souri,, Kansas & Texas railroads, TAX
ing the latter out of the hands of the
receiver. He also invested deeply in
the stock of the Atlantic and Pacific
Telegraph company and on it's consol-