Jay Gould

Last updated

Jay Gould
Jay Gould - Bain News Service.jpg
Born
Jason Gould

(1836-05-27)May 27, 1836
DiedDecember 2, 1892(1892-12-02) (aged 56)
New York City
OccupationFinancier
Spouse(s)
(m. 1863;died 1889)
Children

Jason Gould ( /ɡld/ ; May 27, 1836 – December 2, 1892) was an American railroad magnate and financial speculator who is generally identified as one of the Robber barons of the Gilded Age. His sharp and often unscrupulous business practices made him one of the wealthiest men of the late nineteenth century. Gould was an unpopular figure during his life and remains controversial. [2] [3] [4]

Contents

Early life and education

Gould was born in Roxbury, New York, to Mary More (1798–1841) and John Burr Gould (1792–1866). His maternal grandfather Alexander T. More was a businessman, and his great-grandfather John More was a Scottish immigrant who founded the town of Moresville, New York. Gould studied at the Hobart Academy in Hobart, New York, [5] paying his way by bookkeeping. [6] As a young boy, he decided that he wanted nothing to do with farming, his father's occupation, so his father dropped him off at a nearby school with fifty cents and a sack of clothes. [7]

Early career

Jay Gould (right) in 1855 Young Jay Gould and Hamilton Burhans.jpg
Jay Gould (right) in 1855

Gould's school principal was credited with getting him a job as a bookkeeper for a blacksmith. [8] A year later, the blacksmith offered him half interest in the blacksmith shop, which he sold to his father during the early part of 1854. Gould devoted himself to private study, emphasizing surveying and mathematics. In 1854, he surveyed and created maps of the Ulster County, New York, area. In 1856, he published History of Delaware County, and Border Wars of New York, which he had spent several years writing. [9]

Keystone Marker for Gouldsboro, Pennsylvania, named after Gould Gouldsboro, PA Keystone Marker.jpg
Keystone Marker for Gouldsboro, Pennsylvania, named after Gould

In 1856, Gould entered a partnership with Zadock Pratt [8] to create a tanning business in Pennsylvania in an area that was later named Gouldsboro. He eventually bought out Pratt, who retired. In 1856, Gould entered a partnership with Charles Mortimer Leupp, a son-in-law of Gideon Lee and one of the leading leather merchants in the United States. The partnership was successful, until the Panic of 1857. Leupp lost all his money in that financial crisis, but Gould took advantage of the depreciation in property value and bought up former partnership properties. [8]

The Gouldsboro Tannery became a disputed property after Leupp's death. Leupp's brother-in-law David W. Lee was also a partner in Leupp and Gould, and he took armed control of the tannery. He believed that Gould had cheated the Leupp and Lee families in the collapse of the business. Gould eventually took physical possession, but he was later forced to sell his shares in the company to Lee's brother. [10]

Railroad investing

In 1859, Gould began speculative investing by buying stock in small railways. His father-in-law Daniel S. Miller introduced him to the railroad industry by suggesting that Gould help him save his investment in the Rutland and Washington Railroad in the Panic of 1857. Gould purchased stock for 10 cents on the dollar, which left him in control of the company. [11] He engaged in more speculation on railroad stocks in New York City throughout the Civil War, and he was appointed manager of the Rensselaer and Saratoga Railroad in 1863.

The Erie Railroad encountered financial troubles in the 1850s, despite receiving loans from financiers Cornelius Vanderbilt and Daniel Drew. It entered receivership in 1859 and was reorganized as the Erie Railway. Gould, Drew, and James Fisk engaged in stock manipulations known as the Erie War, and Drew, Fisk, and Vanderbilt lost control of the Erie in the summer of 1868, while Gould became its president. [12]

It was during the same period that Gould and Fisk became involved with Tammany Hall, the Democratic Party political machine that largely ran New York City at the time. They made its boss, William M. Tweed, a director of the Erie Railroad, and Tweed arranged favorable legislation. Tweed and Gould became the subjects of political cartoons by Thomas Nast in 1869. Gould was the chief bondsman in October 1871 when Tweed was held on $1 million bail. Tweed was eventually convicted of corruption and died in jail. [13]

Black Friday

In August 1869, Gould and Fisk began to buy gold in an attempt to corner the market, hoping that the increase in the price of gold would increase the price of wheat and motivate western farmers to sell. This, in turn, would cause a great amount of shipping eastward, increasing freight business for the Erie Railroad. During this time, Gould used contacts with President Ulysses S. Grant's brother-in-law Abel Corbin to influence the president and his Secretary General Horace Porter. [14] [15] These speculations culminated in the panic of Black Friday on September 24, 1869, when the greenback (cash) premium over face value fell on a gold Double Eagle from 62 percent to 35 percent. Gould made a small profit from this operation by hedging against his own attempted corner as it was about to collapse, but he lost it in subsequent lawsuits. The gold corner established Gould's reputation in the press as an all-powerful figure who could drive the market up and down at will. [16]

Lord Gordon-Gordon

In 1873, Gould attempted to take control of the Erie Railroad by recruiting foreign investments from Lord Gordon-Gordon, supposedly a cousin of the wealthy Campbell clan who was buying land for immigrants. He bribed Gordon-Gordon with a million dollars in stock, but Gordon-Gordon was an impostor and cashed the stock immediately. Gould sued him, and the case went to trial in March 1873. In court, Gordon-Gordon gave the names of the Europeans whom he claimed to represent, and he was granted bail while the references were checked. He immediately fled to Canada, where he convinced authorities that the charges were false. [17] [18]

Having failed to convince Canadian authorities to hand over Gordon-Gordon, Gould attempted to kidnap Gordon-Gordon with the help of his associates and future members of Congress Loren Fletcher, John Gilfillan, and Eugene McLanahan Wilson. The group captured him successfully, but they were stopped and arrested by the North-West Mounted Police before they could return to the US. Canadian authorities put them in prison and refused them bail, [17] [18] and this led to an international incident between the United States and Canada. Governor Horace Austin of Minnesota demanded their return when he learned that they had been denied bail, and he put the local militia on full readiness, and thousands of Minnesotans volunteered for an invasion of Canada. After negotiations, the Canadian authorities released them on bail. Gordon-Gordon was eventually ordered to be deported but committed suicide before the order could be carried out. [17] [18]

Western railroads

Cartoon depicting Wall Street as "Jay Gould's Private Bowling Alley" Jay Gould's Private Bowling Alley - Opper 1882.jpg
Cartoon depicting Wall Street as "Jay Gould's Private Bowling Alley"
The mausoleum of Jay Gould (King1893NYC) pg522 JAY GOULD'S MAUSOLEUM, AT WOOOLAWN CEMETERY.jpg
The mausoleum of Jay Gould
Gould's portrait hanging in his office at Lyndhurst which he purchased in 1880 Gould portrait.jpg
Gould's portrait hanging in his office at Lyndhurst which he purchased in 1880

After being forced out of the Erie Railroad, Gould started to build up a system of railroads in the midwest and west. He took control of the Union Pacific in 1873 when its stock was depressed by the Panic of 1873, and he built a viable railroad that depended on shipments from farmers and ranchers. He immersed himself in every operational and financial detail of the Union Pacific system, building an encyclopedic knowledge and acting decisively to shape its destiny. Biographer Maury Klein states that "he revised its financial structure, waged its competitive struggles, captained its political battles, revamped its administration, formulated its rate policies, and promoted the development of resources along its lines." [19] [20]

By 1879, Gould gained control of three more important western railroads, including the Missouri Pacific Railroad. He controlled 10,000 miles (16,000 km) of railway, about one-ninth of the rail in the United States at that time, and he had controlling interest in 15 percent of the country's railway tracks by 1882. The railroads were making profits and set their own rates, and his wealth increased dramatically. He withdrew from management of the Union Pacific in 1883 amid political controversy over its debts to the federal government, but he realized a large profit for himself. He obtained a controlling interest in the Western Union telegraph company and in the elevated railways in New York City after 1881. In 1889, he organized the Terminal Railroad Association of St. Louis which acquired a bottleneck in east–west railroad traffic at St. Louis, but the government brought an antitrust suit to eliminate the bottleneck control after Gould died. [21]

Personal life

Gould was a member of West Presbyterian Church at 31 West 42nd Street. It later merged with Park Presbyterian to form West-Park Presbyterian. [22]

He married Helen Day Miller (1838–1889) in 1863 and had six children.

Gould died of tuberculosis, then referred to as "consumption," on December 2, 1892, and was interred in the Woodlawn Cemetery, The Bronx, New York. His fortune was conservatively estimated for tax purposes at $72 million (equivalent to $2.07 billion in 2021 [23] ), which he willed in its entirety to his family. [5]

At the time of his death, Gould was a benefactor in the reconstruction of the Reformed Church of Roxbury, New York, now known as the Jay Gould Memorial Reformed Church. [24] It is located within the Main Street Historic District and listed on the National Register of Historic Places in 1988. [25] The family mausoleum was designed by Francis O'Hara.

Descendants

Gould married Helen Day Miller (1838–1889) in 1863; they had:

See also

Citations

  1. Maury Klein (October 29, 1997). The Life and Legend of Jay Gould. Johns Hopkins University Press. p. 15. ISBN   978-0-8018-5771-3.
  2. Walter R. Borneman (2014). Iron Horses: America's Race to Bring the Railroads West. p. 235. ISBN   9780316371797.
  3. Maury Klein (1997). The Life and Legend of Jay Gould. p. 393. ISBN   9780801857713.
  4. Rennehan, Edward J. (2005). Dark Genius of Wall Street.
  5. 1 2 Alef, Daniel (2010). Jay Gould: Ruthless Railroad Tycoon. Titans of Fortune Publishing. ISBN   9781608043064.
  6. History of Hobart High School
  7. H. W. Brands "Masters of Enterprise"
  8. 1 2 3 GOULD'S EVENTFUL LIFE, https://timesmachine.nytimes.com/timesmachine/1892/12/03/104101825.pdf
  9. Gould, Jay (1856). History of Delaware County. Philadelphia, Pennsylvania?: Keeny & Gould.
  10. "David Williamson Lee's Career", The New York Times, January 21, 1886.
  11. Klein, Maury (1997). The Life and Legend of Jay Gould. Johns Hopkins University Press. p. 508. ISBN   9780801857713.
  12. Schafer, Mike (2000). More Classic American Railroads. MBI Publishing Company. p. 47. ISBN   076030758X. Retrieved September 22, 2016. [Read on Archive.org]
  13. Conway, J. North (2010). The Big Policeman: The Rise and Fall of America's First, Most Ruthless, and Greatest Detective. Globe Pequot Press. p. 99. ISBN   9781599219653.
  14. White 2016, pp. 479–480.
  15. Brands 2012, p. 442.
  16. Smith 2001, p. 490.
  17. 1 2 3 Donaldson, William (2004). Brewer's Rogues, Villains and Eccentrics. London: Phoenix. pp. 299–300. ISBN   0-7538-1791-8.
  18. 1 2 3 Johnson, J.L. "Lord Gordon Gordon". The Manitoba Historical Society. Retrieved August 22, 2008.
  19. Maury Klein, Jay Gould, (1966) p. 147
  20. Maury Klein, "In Search of Jay Gould." Business History Review 52#2 (1978): 166–199.
  21. United States v. Terminal R.R. Ass'n .
  22. New York City Landmarks Preservation Commission. New York City Landmarks Preservation Commission: "West-Park Presbyterian", nyc.gov; accessed September 25, 2018.
  23. 1634 to 1699: McCusker, J. J. (1992). How Much Is That in Real Money? A Historical Price Index for Use as a Deflator of Money Values in the Economy ofthe United States: Addenda et Corrigenda (PDF). American Antiquarian Society. 1700-1799: McCusker, J. J. (1992). How much is that in real money?: a historical price index for use as a deflator of money values in the economy of the United States (PDF). American Antiquarian Society. 1800–present: Federal Reserve Bank of Minneapolis. "Consumer Price Index (estimate) 1800–" . Retrieved January 1, 2020.
  24. History of the Reformed Church of Roxbury, Delaware County, New York Archived September 23, 2008, at the Wayback Machine , churches.rca.org; accessed May 3, 2014.
  25. "National Register Information System". National Register of Historic Places . National Park Service. March 13, 2009.
  26. "George J. Gould Dies in Villa in France. Leaves $30,000,000. With His Second Wife and Her Children Near, He Yearned for His Sons. Last Malady a Secret. Death Holds Up Litigation With Family Over His Father's Estate. First Became Ill in March. Had Apparently Regained Health When He Suffered a Relapse". The New York Times. May 17, 1923. Retrieved May 23, 2008. George Jay Gould died this morning at 3:30 o'clock at the Villa Zoralde, Cap Martin, where he had been living for some months with his wife and her two children. His death, it was stated at the villa, came quietly and was expected, as he had never rallied from the illness from which he had been suffering all Winter.
  27. "Kingdon Gould, 58, Long a Financier. Grandson of Founder of Family Fortune Dies. Once on Rail Boards. Officer In 1918". The New York Times. November 8, 1945. Retrieved June 19, 2008.
  28. "Jay Gould Is Dead. Court Tennis Star. Grandson of the Financier Had Held Championship for Quarter of Century" . Retrieved July 21, 2007.
  29. "Lady Decies Dies at 38 in London. Former Helen Vivien Gould Was Principal in Brilliant International Wedding of 1911. Was Noted As Hostess. Her Entertaining Was a Feature of British Capital. Husband Is Distinguished Irish Peer". The New York Times. February 3, 1931. Retrieved November 26, 2007.
  30. "He Is George Jay Gould, Jr". The New York Times. May 15, 1896. Retrieved August 22, 2008.
  31. "Lady MacNeal Dies. Was Edith Gould. Granddaughter of Financier, 36, Succumbs at Estate in East Hampton. Wife of British Knight. Wrote Autobiography Telling of Family Life ..." The New York Times. September 12, 1937. Retrieved August 22, 2008.
  32. "Gloria Gould Barker Is Drowned In Swim Pool at Arizona Home. Mrs. W.M. Barker Drowns In A Pool. Victim of Accident". The New York Times. Associated Press. August 16, 1943. Retrieved June 7, 2008.
  33. 1 2 "Edwin Gould Dies Suddenly at 67. Son of Railroad Financier and Builder Was Noted for Benefactions to Children. Left School of Finance. Made $1,000,000 Profit Operating Alone in Wall Street Before Father Forgave Him". The New York Times. July 13, 1933. Retrieved August 6, 2008. Edwin Gould, second son of the late Jay Gould, financier and railroad builder, died suddenly of a heart attack shortly after ...
  34. Gould; Time; July 31, 1933
  35. The New York Times; October 15, 1951, Monday; Mrs. Edwin Gould Dies in Hospital; Widow of Financier's Son Was Daughter of Surgeon Who Attended President Grant.
  36. Sublimed Gould; Time; July 24, 1933
  37. The New York Times; February 26, 1917, Monday; Edwin Gould, Jr., Killed on Hunt with Own Gun; Was Clubbing 'Coon Caught in Trap When Trigger Caught, Firing the Weapon. Shot Severed Artery.
  38. The New York Times; January 14, 1945
  39. "Mrs. F.J. Shepard Dies of a Stroke. Former Helen Gould, Famous for Philanthropy, Stricken at Her Summer Home Gave Away Much of Fortune. Mrs. Finley J. Shepard Is Stricken at 70. Philanthropist and Daughter of Jay Gould Got Permission to Marry. Wed at Lyndhurst. Benefactions in War With Spain. Descendant of Pioneers". The New York Times. December 21, 1938. Retrieved June 18, 2007. Mrs. Finley J. Shepard of New York, the former Helen Gould, who was famous for her philanthropies in many fields, died at her Summer home here at 12:15 this morning, after being in a coma for more than 24 hours. She had suffered an apoplectic stroke ten days ago, and had been ill for two months. Her age was 70 years.
  40. Snow, Alice Northrop (1943). The Story of Helen Gould. F. H. Revell.
  41. "Howard Gould dies here at 88... [l]ast surviving son of Jay Gould, rail financier, yachtsman, auto racer". The New York Times. September 15, 1959. Retrieved June 21, 2007. Howard Gould, last surviving son of Jay Gould, the railroad financier, died Sunday in Doctors Hospital. He was 88 years old. Although Mr. Gould's residence ...
  42. "Duchesse de Talleyrand Is Dead. Youngest daughter of Jay Gould". The New York Times. November 30, 1961. Retrieved August 6, 2008. The Duchesse de Talleyrand-Périgord, daughter of the late Jay Gould, American railroad financier, died today in Paris where she passed most of her life.
  43. "Son of Ann Gould succumbs in Paris". The New York Times. February 8, 1946. Marquis De Castellane Held French Embassy Posts in London During 1940. Paris, Feb. 7, 1946. The death of Marquis de Castellane, son of the late Count Boni de Castellane and the former Anna Gould of New York, who eventually became Duchess de Talleyrand-Périgord, was announced today.
  44. "Talleyrand Motel". Time magazine. June 3, 1929. Archived from the original on October 27, 2010. Retrieved July 21, 2007.
  45. "Anna Gould's Son, Self-Wounded, Dies. Howard De Talleyrand, Prince De Sagan, 19, Succumbs In Paris After 11 Days. Parent's At His Bedside". The New York Times . May 29, 1929. Retrieved July 21, 2007.
  46. "Frank Jay Gould Dead on Riviera. Youngest Son of Rail Empire Maker was 78. Built Up Resort of Juan-les-Pins Heir to $10,000,000 N.Y.U. Graduate of 1899". The New York Times. Associated Press. April 1, 1956. Retrieved April 6, 2008. Frank Jay Gould died today at his apartment at Juanles-Pins on the French Riviera. He was 78 years old
  47. "Inside the Lincoln Conspiracy with G.J.A. O'Toole". The Tin Whistle. September 24, 2014. Retrieved April 29, 2018.
  48. "The Cosgrove Report". Grove Atlantic . February 10, 2009. Retrieved April 26, 2018.

General bibliography

Further reading

Newspaper articles
Books

Related Research Articles

George Jay Gould

George Jay Gould I was a financier and the son of Jay Gould. He was himself a railroad executive, leading the Denver and Rio Grande Western Railroad (DRGW), Western Pacific Railroad (WP), and the Manhattan Railway Company.

Edwin Gould investor and railway official

Edwin Gould Sr. was an American investor and railway official.

Edith Kingdon

Edith Mary Kingdon Gould was an American actress. She married George Jay Gould.

Gloria Gould

Gloria Gould was the socialite daughter of industrialist heir George Jay Gould I.

Kingdon Gould Sr.

Kingdon Gould Sr. was an American financier and champion polo player.

Anna Gould

Anna Gould was an American socialite and heiress as a daughter of financier Jay Gould.

Howard Gould

Howard Gould was an American financier and the son of Jay Gould.

Boni de Castellane French noble

Marie Ernest Paul Boniface de Castellane, Marquis de Castellane, known as Boni de Castellane, was a French nobleman and politician. He was known as a leading Belle Époque tastemaker and the first husband of American railroad heiress Anna Gould.

Boniface de Castellane

Esprit Victor Elisabeth Boniface de Castellane, comte de Castellane, was a French military officer and ultimately a Marshal of France.

Boson de Talleyrand-Périgord

Charles Guillaume Frédéric Boson de Talleyrand-Périgord, prince of Sagan, duke of Sagan and duke of Talleyrand was a famous French dandy, and the grandson of Dorothea von Biron.

Joséphine Pauline de Talleyrand-Périgord, Marquise de Castellane was a French noblewoman.

House of Castellane

The House of Castellane is a very ancient French noble house originating in Provence and descended from Thibault, count of Arles in the 9th century.

Hélie de Talleyrand-Périgord, Duke of Sagan

Marie Pierre Louis Hélie de Talleyrand-Périgord, 5th Duke of Talleyrand and Dino, Prince, then Duke of Sagan, was a French socialite and son of Boson de Talleyrand-Périgord.

The Erie War was a 19th-century conflict between American financiers for control of the Erie Railway Company, which owned and operated the Erie Railroad. Built with public funds raised by taxation and on land donated by public officials and private developers, by the middle of the 1850s the railroad was mismanaged and heavily in debt. A cattle drover turned Wall Street banker and broker Daniel Drew at first loaned $2 million to the railroad, and then acquired control over it. He amassed a fortune by skillfully manipulating the Erie railroad shares on the New York Stock Exchange. Cornelius Vanderbilt, who set his mind on building a railroad empire, saw multiple business and financial opportunities in railways and decided in 1866 to corner the market on Erie by silently scooping the Erie railroad stock. After succeeding, Vanderbilt permitted Drew to stay on the board of directors in his former capacity as a treasurer.

Louis de Talleyrand-Périgord Duke of Valençay, Duke of Talleyrand, Duke of Dino

Napoléon-Louis de Talleyrand-Périgord, duc de Valençay, 3rd duc de Talleyrand-Périgord was a French aristocrat, soldier and politician.

Charles Egon IV Maria Frédéric Emile Kaspar Henri Guillaume Kamill Max Louis Victor, prince of Fürstenberg was a German prince.

Marquis Boniface Antoine de Castellane was a French aristocrat, most notable as deputy for Cantal and as father of Boni de Castellane.

Edith Catherine Gould

Edith Catherine MacNeal was an American heiress and author.

George Jay Gould II

George Jay Gould II was an American lawyer and oil company executive.

Marjorie Gould Drexel

Marjorie Gwynne Drexel (née Gould was an American heiress and socialite.