The Railroad Builders: A Chronicle of the Welding of the StatesMoody, John
History
The Railroad Builders: A Chronicle of the Welding of the States
Moody, John
Railroads -- United States -- History
Drew had agreed to sell 50,000 shares of stock at 80 to the firms of
which Jay Gould and James Fisk, Jr., were members; they were also Erie
directors. On Monday morning, the 9th of March, the certificates, filled
out in the names of these firms, were handed by the secretary to an
employee who was directed to carry them from the office of the company
in West Street to the transfer clerk in Pine Street. The messenger
left, but in a moment or two returned to report to the apparently
amazed secretary that Fisk had met him outside the door, had taken the
certificates away from him, and "had run away with them." It was true.
The stock certificates had been "stolen" and were beyond the control
of an injunction. The stock certificates next appeared in every part of
Wall Street.
On the same day the Erie representatives applied to Judge Gilbert of
Brooklyn for an injunction on the ground that certain persons, including
Judge Barnard, had entered into a conspiracy to speculate in Erie stock
and to use the process of the courts to aid the speculation. To the
amazement of everybody, Judge Gilbert issued an injunction restraining
all parties to all the other suits from further proceedings; in one
paragraph ordering the Erie directors to continue in the discharge of
their duties--in direct defiance of the injunction of one judge--and in
the next paragraph forbidding the directors to desist in the conversion
of bonds--in direct defiance of another judge. The Drew interests were
now enjoined in every direction. One judge had forbidden them to move,
and another judge had ordered them not to stand still.
It was a strategic position which Drew and his agents could not have
improved upon, and while matters stood this way the 50,000 shares of
Erie stock had been flung on the market. Vanderbilt, who was ignorant of
this situation, bought the new stock as eagerly as the old. Then, when
the facts came out, the quotations dropped with a thud. Uncle Daniel was
victorious; the attempted corner had been a failure; and the Commodore
was holding the bag.
Further dramatic events followed. The Erie directors learned that
process for contempt had been issued and that their only chance of
escape from jail lay in immediate flight. So, stuffing all that was
worth while of the Erie Railroad into their pockets, they made off under
cover of darkness to Jersey City. One man carried with him in a hackney
coach over $6,000,000 in greenbacks. Two of the directors lingered and
were arrested; but a majority collected at the Erie station in Jersey
City and there, free from interference, went on with the transaction of
business. Without disturbance they were able to count their expenses and
divide the profits.
Public-domain text, read in full here on John Shaqi.
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