Jay Gould

Jay Gould was a prominent American railroad magnate and financial speculator. He lived during the Gilded Age, a period of rapid economic growth in the United States. Gould is often identified as one of the "robber barons." This term refers to powerful businessmen who used aggressive or unscrupulous methods to build wealth. He became one of the richest individuals of the late 19th century. However, his business tactics made him a very controversial and unpopular figure.

Gould's early life was marked by significant hardship. He was born in Roxbury, New York, in 1836 to Mary More and John Burr Gould. He grew up in poverty working on his family's dairy farm. Dissatisfied with farming, he sought an education at the Hobart Academy. He paid for his schooling by working as a bookkeeper for a local blacksmith.

During this time, he focused his studies on mathematics and surveying. He eventually published books on the history of New York and created maps of Ulster County. He also entered the tanning industry and started an ice harvesting business at Gouldsboro Lake.

His entry into the railroad industry began with speculative investing. In 1859, he started buying stock in small railway companies. During the Panic of 1857, his father-in-law, Daniel S. Miller, suggested he help save an investment in the Rutland and Washington Railroad. Gould purchased stock for only 10 cents on the dollar. This strategy allowed him to gain control of the company. He continued this type of speculation throughout the American Civil War.

By 1868, Gould had become the president of the Erie Railroad following a period of intense conflict known as the Erie War.

Gould's business methods often involved complex political and financial maneuvers. He worked with James Fisk and became involved with Tammany Hall. This was a powerful Democratic Party political machine that controlled much of New York City. Through Tammany Hall, Gould and Fisk influenced legislation to benefit the Erie Railroad. This period also involved significant corruption, notably involving the political leader William "Boss" Tweed.

Gould's reputation for power grew even further after the events of "Black Friday."

Black Friday occurred on September 24, 1869. Gould and Fisk attempted to illegally corner the gold market. They tried to drive the price of gold up by buying massive amounts of it. They even attempted to influence President Ulysses S. Grant's administration. The attempt failed and caused a massive financial panic across the nation. This crisis was devastating for farmers and many large financial institutions on Wall Street. While Gould made a small profit by hedging his bets, he later lost money in resulting lawsuits.

After losing control of the Erie Railroad, Gould shifted his focus to the West. In 1873, he took control of the Union Pacific railroad. He managed the system with great detail, overseeing its finances and operations. By 1882, Gould controlled approximately 15 percent of all railway tracks in the United States. He also held a controlling interest in the Western Union telegraph company. His wealth increased dramatically as these railroads became highly profitable. He even controlled about one-ninth of the entire American rail network at one point.

Gould's life was filled with both immense wealth and constant conflict. He lived in a Gothic Revival mansion named Lyndhurst.

He traveled to his office in Manhattan on a steam yacht called the Atalanta.

Because of his reputation, he required armed guards to patrol his estate. Gould died of tuberculosis in 1892. At the time of his death, his fortune was estimated at $72 million. He left his entire estate to his family and was buried in a large mausoleum.

His career remains a central example of the intense competition and changing ethics of the American industrial era.