The Railroad Builders: A Chronicle of the Welding of the States — John Shaqi
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
After reaching his destination Gould became so ill that he could not
return to New York, though he managed to go to the Capitol in a driving
snowstorm. Here he became rapidly convalescent, as did also many members
of the Legislature. Members, indeed, who had been too sick or too feeble
to attend the legislative sessions during this cold winter suddenly
found their health returning and flocked to Albany on the fastest
trains. Gould stayed in Albany until April, and by this time a
remarkable change had come over the mentality of a majority of the
legislators. On the 13th of April a bill was presented in the Senate
which met the approval of the Erie interests and which Judge Barnard
afterwards designated as a bill for legalizing counterfeit money. This
bill, which was passed after due debate, legalized the issues of Erie
bonds and stocks which had been put out by Drew; it provided for the
guaranty of the bonds of connecting roads as desired by Drew; and it
forbade all possible contracts for consolidation or division of receipts
between the Erie and the Vanderbilt roads, a provision also desired by
Drew. In fact it was the same bill in different form that had been voted
down so decisively a short time before.
But the real tug of war was to get the bill through the lower House.
Fabulous stories were told of money which would be expended and the
market quotations for votes never soared so high. Then, at the critical
moment, Vanderbilt surrendered, made a secret deal with his foe, and
withdrew his opposition to the bill. The anger of the disappointed
grafters and vote-sellers knew no bounds, and they immediately set
to work passing other bills which they felt would annoy or injure
Vanderbilt, with the hope that he would still be induced to give them
what they regarded as their rightful spoils.
The details of this settlement between Drew and Vanderbilt were not
announced until some months afterward. By the terms agreed on Vanderbilt
was relieved of 50,000 shares of Erie stock at 70, payable partly in
cash and partly in bonds guaranteed by the Erie, and received $1,000,000
in cash for an option given the Erie Railroad to purchase his remaining
50,000 shares at 70 within four months, besides about $430,000 to
compensate his friends who had worked so heroically for him. This total
sum of nearly $5,000,000 no doubt represented part of the "slush fund"
which Drew expected that the company would have to give up to the
venal legislators, and it was therefore no hardship to hand it over to
Vanderbilt instead.
Public-domain text, read in full here on John Shaqi.
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