Gould, << goold, >> Jay (1836-1892), was an American financier who played a prominent role in building the network of railroads in the United States in the late 1800’s. By 1880, he controlled more than 8,000 miles (12,900 kilometers) of track. Gould grew wealthy using business tactics his critics viewed as questionable or dishonest.
Gould was born on May 26, 1836, near Roxbury in Delaware County, New York. During the American Civil War (1861-1865), he became an investor on Wall Street, and he quickly became masterful in financial dealings.
In 1867, Gould joined the board of directors of the Erie Railroad. In 1868, he and board members James Fisk and Daniel Drew illegally issued new stock to prevent financier Cornelius Vanderbilt from taking over the line. Gould made millions by manipulating Erie stock but also made the Erie into a major line. In 1869, he conspired with Fisk and others to control the gold market by buying up all the gold available in New York City. Their actions caused the Black Friday panic of September 24, in which thousands of investors suffered losses. Gould, however, made a fortune on his gold transactions (see Black Friday ). Many came to view Gould as a financial predator who profited by stirring up trouble on Wall Street. Lawsuits forced him to give up control of the Erie in 1872 and to return millions of dollars to the railroad.
Gould next began developing Western railroads. He came to own or control many lines, including the Denver Pacific, Kansas Pacific, Missouri Pacific, and Union Pacific. During the 1880’s, Gould gained control of the Western Union Telegraph Company and of several elevated railroads in New York City. Gould worked hard to manage these companies soundly and to efficiently integrate his railroad holdings.
