Jay Gould’s biography tells the story of a man who, born on May 27, 1836, in Roxbury, New York, would rise to become one of the most influential and controversial figures in the American railroad industry during the Gilded Age. His life was a blend of astute financial strategies and bold investments, which crafted a success story that left a significant mark on U.S. commerce and infrastructure.
Biography Summary
Jason Gould, born on May 27, 1836, and passing away on December 2, 1892, was a prominent American railroad magnate and financial speculator who established the Gould business dynasty. Widely regarded as one of the Gilded Age’s “robber barons,” Gould’s aggressive and often controversial business tactics amassed him a vast fortune, making him one of the richest men of his era. Despite his financial success, he was not a beloved figure during his lifetime, and his legacy continues to spark debate.
Early Life
Jason Gould’s journey began in Roxbury, New York, where he was born to Mary More and John Burr Gould. His family had deep business roots, with his maternal grandfather, Alexander T. More, a businessman, and his great-grandfather, John More, a Scottish immigrant who established the town of Mooresville, New York. Gould’s academic path took him to Hobart Academy in Hobart, New York, where he funded his education through bookkeeping. From a young age, Gould was determined to steer clear of farming, his father’s trade. His resolve led him to a pivotal moment when his father left him at a nearby school with just fifty cents and a sack of clothes, setting the stage for a future far from the fields.
Early Career
In 1855, Jay Gould embarked on his early career, starting as a bookkeeper for a local blacksmith, thanks to his school principal. Within a year, Gould was offered a half interest in the shop, which he soon sold to his father in early 1854. This sale allowed him to focus on private studies, particularly surveying and mathematics. His skills led to creating maps for the Ulster County, New York, area in 1854. By 1856, he had authored the History of Delaware County, and Border Wars of New York. This book took several years to write, all while he continued his surveying work. During this period, Gould also financed operations that produced wood ash for tanning leather.
In the same year, Gould forged a partnership with Zadock Pratt to start a tanning business in Pennsylvania, in a region that would later be named Gouldsboro after him. He eventually took full ownership after buying out Pratt. Another significant partnership formed in 1856 was with Charles Mortimer Leupp, a prominent leather merchant. Their collaboration flourished until the Panic of 1857, which devastated Leupp financially. Gould, however, seized the opportunity to acquire devalued properties from the partnership.
Having the ability to get and gain respect through your work is great but you have to be careful not to get carried away. – Jay Gould Share on XAdditionally, Gould ventured into the ice harvesting industry in Gouldsboro, utilizing the large lake for ice storage and transportation. He established a railway line to transport the harvested ice to New York City during the summer months.
The tannery in Gouldsboro became a point of contention after Leupp’s death, leading to a dispute with Leupp’s brother-in-law, David W. Lee. Lee, feeling aggrieved and accusing Gould of malpractice, took armed control of the tannery. Despite initially regaining physical control, Gould was eventually compelled to sell his shares in the company to Lee’s brother.
Building Railroad Empire
In 1859, Jay Gould ventured into the railroad industry by investing in stocks of small railways. His introduction to this sector came through his father-in-law, Daniel S. Miller, who needed help to salvage his Rutland and Washington Railroad investments following the Panic of 1857. Gould purchased shares at a mere 10 cents on the dollar, gaining company control. Throughout the Civil War, he continued his speculative activities in New York City’s railroad stocks. In 1863, he was named manager of the Rensselaer and Saratoga Railroad.
Despite financial aid from prominent financiers like Cornelius Vanderbilt and Daniel Drew, the Erie Railroad faced significant financial difficulties in the 1850s and went into receivership in 1859. It was later restructured as the Erie Railway. Gould, along with Drew and James Fisk, became involved in notorious stock manipulations during an episode famously known as the Erie War. By the summer of 1868, Drew, Fisk, and Vanderbilt had lost their grip on the Erie, paving the way for Gould to ascend to the presidency of the railroad.
Gould, Tweed, and the Erie Railroad
During the same era, Jay Gould and his associate James Fisk formed a connection with Tammany Hall, the powerful Democratic Party political machine dominating New York City politics. They appointed its infamous leader, William M. “Boss” Tweed, as a director of the Erie Railroad. In return, Tweed facilitated advantageous legislation for their ventures. Both Tweed and Gould were frequently depicted in Thomas Nast’s political cartoons, which started in 1869. In a notable incident in October 1871, Gould became the chief bondsman when Tweed was arrested on corruption charges, with bail set at $1 million. Tweed was eventually convicted and passed away in prison.
Black Friday 1869: The Gold Market Scandal
In August 1869, Jay Gould and James Fisk set out to dominate the gold market in what would become known as Black Friday. Their strategy involved buying vast amounts of gold to corner the market. Gould leveraged his connections, notably with President Ulysses S. Grant’s brother-in-law Abel Corbin, to try to influence the President and his Secretary General Horace Porter.
Their maneuvers led to the financial chaos of Black Friday on September 24, 1869, when the value of cash over gold drastically dropped. While Gould managed to secure a small profit by hedging bets against his scheme as it unraveled, he eventually lost those gains in numerous subsequent lawsuits. This episode solidified Gould’s image in the media as a formidable force capable of manipulating market dynamics.
I can hire one half of the working class to kill the other half. – Jay Gould Share on XDespite the clear manipulation, Gould and Fisk avoided legal repercussions, thanks in part to the protection of judges associated with the Tweed Ring. However, the fallout from their actions triggered widespread economic disruption, causing significant losses for farmers and leading to the bankruptcy of several well-established financial institutions on Wall Street.
Gould’s Railroad Ventures and Scandals
Erie Railroad Saga
In 1873, Jay Gould sought to expand his railroad empire by taking control of the Erie Railroad with an ambitious plan involving foreign investors. He targeted Lord Gordon-Gordon, who claimed to be connected to the influential Campbell clan and was ostensibly purchasing land for immigrants. Gould, deceived by Gordon-Gordon’s facade, offered him a million dollars in stock as a bribe. However, Gordon-Gordon was a fraudster who promptly cashed in the stock. When Gould realized the deception, he took legal action, leading to a trial in March 1873. During the trial, Gordon-Gordon was granted bail to verify his European references but used the opportunity to flee to Canada, where he persuaded local authorities of his innocence.
Gould’s attempts to deport Gordon-Gordon failed, leading him to take drastic measures by trying to kidnap him with the assistance of future U.S. Congress members Loren Fletcher, John Gilfillan, and Eugene McLanahan Wilson. They briefly captured Gordon-Gordon, but the North-West Mounted Police intervened, and the captors were arrested, sparking an international incident with Canada. Tensions escalated to the point where Minnesota Governor Horace Austin readied the militia for a potential invasion. After intense negotiations, the Canadians released the Americans on bail. Ultimately, Gordon-Gordon was ordered for deportation but took his own life before it could be enacted.
Expansion in the West
After his Erie Railroad adventures, Gould shifted focus to the Western United States, starting with the Union Pacific in 1873, amidst the Panic of 1873. He deeply involved himself in every aspect of the railroad, from operations to financial management, decisively influencing its growth and efficiency. By 1879, Gould had gained control of significant western railroads, including the Missouri Pacific Railroad and the Denver and Rio Grande Railway, managing about 10,000 miles of track—nearly one-ninth of all U.S. railroads. His influence extended to the Western Union telegraph and New York City’s elevated railways, commanding 15 percent of the nation’s railway tracks by 1882. Despite withdrawing from the Union Pacific in 1883 amid controversies over debt obligations to the federal government, Gould profited handsomely.
In his later years, in 1889, Gould formed the Terminal Railroad Association of St. Louis to address a major bottleneck in east-west railroad traffic. However, his control faced posthumous government antitrust actions.
Robber Baron or Market Maverick?
Jay Gould faced significant criticism during his lifetime. He was primarily viewed as a speculator rather than a builder who significantly contributed to the industries he entered. Many saw his methods as unscrupulous, fitting the stereotype of a robber baron rather than a constructive entrepreneur. However, more recent evaluations have offered a nuanced view, suggesting that his business ethics were typical of his era.
Modern historians like Murray N. Rothbard, in his book The Progressive Era, argue that Gould’s reputation as a predatory financier might be overstated. Unlike many of his contemporaries, Gould often disrupted prevailing railroad cartels by initiating new rail lines. This strategy, which went against the era’s common practices of rate fixing, actually helped lower transportation costs for consumers, challenging the idea that he was solely self-serving. This perspective presents Gould as a schemer and a competitive force in the market that indirectly benefited the public.
Personal Life
Jay Gould made substantial personal and architectural marks in his era. In 1880, he acquired Lyndhurst, a striking Gothic Revival mansion on the east bank of the Hudson River, establishing it as his family’s country retreat.
A committed member of the West Presbyterian Church on West 42nd Street, which later became part of West-Park Presbyterian through a merger, Gould was deeply involved in his community’s spiritual life. In 1863, he married Helen Day Miller, and together they raised six children, embedding family deeply in his life’s fabric.
Gould also indulged in the luxury of the times, founding the American Yacht Club with his son George. He took pride in his steam yacht, the Atalanta, purchased in 1883, reflecting the era’s affinity for grandeur and opulence.
Death
His life, however, was not without its endurances. On December 2, 1892, Gould succumbed to tuberculosis, known then as “consumption.” He was laid to rest in Woodlawn Cemetery in The Bronx, New York, leaving behind a substantial legacy valued at $72 million—an amount equivalent to about $2.44 billion today. His estate was entirely bequeathed to his family, ensuring his lineage would continue his legacy.
At his passing, Gould was also remembered as a benefactor who contributed to the reconstruction of the Reformed Church of Roxbury, New York, now known as the Jay Gould Memorial Reformed Church. This site, part of the Main Street Historic District, was recognized on the National Register of Historic Places in 1988. The family’s mausoleum, designed by Francis O’Hara, is a lasting monument to their influential presence
Jay Gould’s Timeline
- 1836: Born on May 27 in Roxbury, New York.
- 1856: Authored History of Delaware County, and Border Wars of New York.
- 1859: Began investing in the railroad industry.
- 1863: Married Helen Day Miller; appointed manager of the Rensselaer and Saratoga Railroad.
- 1869: Involved in the infamous “Black Friday” gold market scandal.
- 1870: Became president of the Erie Railroad.
- 1873: Tried to take control of the Erie Railroad with the help of foreign investments; bought the Union Pacific during the Panic of 1873.
- 1880: Purchased Lyndhurst, his country home on the east bank of the Hudson River.
- 1881: Gained control of the Western Union telegraph company.
- 1883: Withdrew from the management of the Union Pacific Railroad.
- 1889: Organized the Terminal Railroad Association of St. Louis.
- 1892: Died of tuberculosis on December 2; interred in Woodlawn Cemetery in The Bronx, New York.
Final Reflections
The success story of Jay Gould, which ended with his death on December 2, 1892, encapsulates the complexities of American enterprise in the late 19th century. Through his investments in railroads and telegraphy, detailed in Jay Gould’s biography, he not only amassed great wealth but also significantly impacted the nation’s economic landscape. His legacy, marked by innovation and controversy, continues to be studied and debated by historians today.
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