The Wizard of Wall Street and His Wealth; or, The Life and Deeds of Jay GouldWhite, Trumbull
History
The Wizard of Wall Street and His Wealth; or, The Life and Deeds of Jay Gould
White, Trumbull
Businessmen -- United States -- Biography; Capitalists and financiers -- United States -- Biography; Gould, Jay, 1836-1892
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.
Public-domain text, read in full here on John Shaqi.
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