Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1892-12-09
CHAPTER OF HISTORY
WHICH READS LIKE FICTION.
The Astounding Financial Operations
of Jay Gould and James Fisk, Jr.

How They Nearly Ruined Vnnderbilt---
the Gold specuIatIons which Resulted
in "Blnck Friday"
CONDENSED from the Springfield Republican,
The first great speculative transaction
which drew to him the attention of the
country was in connection with the Erie
railroad The shares of this road had
fallen to next to nothing during and right
after the war and Gould had bought up a
considerable amount of the stock. Daniel
Drew was then supreme in Erie councils
and was working the road for his own ends.
He took in Gould as a director. Commo-
dore Vanderbilt had meantime, through
the successful cornering of the Harlem
and Hudson River railroad stocks ac-
quired control of those properties and con-
solidated with them the New York Cen
trail railroad. He now began to reach out
after Erie. But Drew proved too much for
him. Vanderbilt bought the stock furi-
ously, but it continued to pour into the
market in unlocked for quantity. The
truth finally came out. Drew, guided by
Gould and Gould's boon companion, James
Fisk, ir., was over-issung Erie stock in
immense quantity-the boldest and most
daring game ever played up to that time
in railroad speculation, or that has ever
since been played. AS Vanderbilt bought
the stock and Drew and his young pals
poured it out, Fisk said: If this printing
press don't break down I'll be darned II
don't give the old hog all he wants of Erie. "
And he did. Vanderbilt could not COM
pete with the printing press, and gave up.
nearly ruined. He appealed to the courts
and got out an injunction against fur
ther selling of Erie stock Drew also had
minions on the bench and had counter in
functions issued. Vanderbilt threatened
to depress New York Central stock TO 80
on the New York banks, which held guam
titles of it, unless he was loaned money on
the Erie stock to continue his fight on an
other tack. lie raised several millions.
and swept down on the Erie men through
the courts and otherwise compelled Drew,
Gould and Fisk to fee to Jersey City.
There they We're forced finally to barricadc
themselves in a hotel surrounded by an
| armed guard. Vanderbilt offered a reward
| of $4,000 for the capture OF Drew, and
the whole Erie dictatorship sought safety
| in flight and the protection of large bodie,
Of armed mercenaries.
But the commodore never rucceeded IN
! Furnishing his enemies. He lost many mil
| lions in that fight, and Drew, Gould anC
| Fisk made many more. The courts Of
| New York were at the beck and call OF
| either party. One set of judges WORKED
| for Vanderbilt and another set for Drew
! injunction was followed by counter injunc
| ton; eminent lawyers prostituted thei
| great talents to the ends of each, and a wilC
reign of financial piracy set in.
Fisk and Gould made a most effectiv,
combination. Fisk was daring charac
ter, while Gould was suave in manner, far
sighted and calculating. secretive and reti
cent, and disposed to keep in the back
ground and put others forward to d,
| his work. Gould, therefore
planned while Fisk went forward to exc
cute-and TO admiration did each fill hi
place. After Drew had made his peace will
Vanderbilt and his party had returned t
| New York, Gould and Fisk set about get
ting Erie from "Uncle Dan'l.n The Fri
company had some $l3, 900, 900 in the New
York banks as result of the over-issuini
of stock. Presenting checks simultane
ously one morning at all the banks FISH
and Gould drew the money out and cause,
a panic in which Erie dropped 80 per cen
or so to $40 and S3j a share, at which the
bought up full control. Then they entice
Drew into a bear move against then
and cornered him and squeezed ont his las
dollar Drew died broken-hearted. ali
touch is DEATH he said of Gould.
Gould and Fisk were now riding on IN
top wave of fortune with the ablest Law
yers at their call, many of the courts i
their service and the government Of Net
York tiebauched and practically reduced t
state of impotency. They now planne
the most daring raid on the property {
others probably ever conceived and put j
execution. This was in 1869. The croT
of the year were bountful. Gold was
premium of about 40. II was conceive
by business men that if the governmer
would suspend its sales of gold the effet
would be to stimulate the export of pr'
duce rather than gold. Fisk and Goul
took up this idea and began to buy COL
early in the summer. At the same tin
they worked up a conspiracy to hoodwin
President Grant and get him to order Il
suspension of gold sales. They had II
audacty to board a Fall River boat q
which the President was going TO Bostc
; to attend the peace Jubilee, and Fisk pl