Jason Gould (; May 27, 1836 – December 2, 1892) was an American railroad magnate and financial speculator who founded the Gould business dynasty. He is generally identified as one of the

robber barons Robber baron may refer to: * Robber baron (feudalism), an unscrupulous medieval landowner * Robber baron (industrialist) Robber baron is a term first applied by 19th century muckrakers and others as social criticism to certain wealthy, powerfu ...

of the

Gilded Age In History of the United States, United States history, the Gilded Age is the period from about the late 1870s to the late 1890s, which occurred between the Reconstruction era and the Progressive Era. It was named by 1920s historians after Mar ...

. 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.

Early life and education

Gould was born in

Roxbury, New York Roxbury is a town A town is a type of a human settlement, generally larger than a village but smaller than a city. The criteria for distinguishing a town vary globally, often depending on factors such as population size, economic characte ...

, 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, however, grew up in poverty and had to work at his family's small dairy farm. Gould studied at the Hobart Academy in

Hobart, New York Hobart is a village in Delaware County, New York, United States. The population was 441 at the 2010 census. The village is in the town of Stamford and is on New York Route 10 in the northeastern part of the county. Since 2005, Hobart has had m ...

, paying his way by bookkeeping. 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.

Early career

Gould's school principal was credited with getting him a job as a bookkeeper for a blacksmith. A year later, the blacksmith offered Gould a 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 Ulster County is a County (United States), county in the U.S. state of New York (state), New York. It is situated along the Hudson River. As of the 2020 United States census, 2020 census, the population was 181,851. The county seat is Kingston, ...

, area. In 1856, he published ''History of Delaware County, and Border Wars of New York,'' which he had spent several years writing. While engaged in surveying, he started a side activity financing operators making

wood ash Wood ash is the powder (substance), powdery residue remaining after the combustion of wood, such as burning wood in a fireplace, bonfire, or an industrial power plant. It is largely composed of calcium compounds, along with other non-combustible ...

, which is used with

tannin Tannins (or tannoids) are a class of astringent, polyphenolic biomolecules that bind to and Precipitation (chemistry), precipitate proteins and various other organic compounds including amino acids and alkaloids. The term ''tannin'' is widel ...

leather making Leather is a strong, flexible and durable material obtained from the tanning, or chemical treatment, of animal skins and hides to prevent decay. The most common leathers come from cattle, sheep, goats, equine animals, buffalo, pigs and hogs, ...

. In 1856, Gould entered a partnership with

Zadock Pratt Zadock Pratt Jr. (October 30, 1790 – April 5, 1871) was a tanner, banker, soldier, and member of the United States House of Representatives for two non-consecutive terms in the mid-19th century. Pratt served in the New York militia from ...

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 Gideon Lee II (April 27, 1778August 21, 1841) was an American politician who was the 60th Mayor of New York City from 1833 to 1834, and United States Representative from New York for one term from 1835 to 1837. Early life Lee was born in Amherst ...

and one of the leading leather merchants in the United States. The partnership was successful, until the

Panic of 1857 The Panic of 1857 was a financial crisis in the United States caused by the declining international economy and over-expansion of the domestic economy. Because of the invention of the telegraph Telegraphy is the long-distance transmission ...

. 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. Gould also started an ice harvesting industry on the large Gouldsboro Lake. In the winter, ice was harvested and stored in large ice houses on the lakeside. He had a railroad line installed next to the lake and he supplied New York City with ice during the summer months. 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 during 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.

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 The Rutland and Washington Railroad was a railroad company based in Rutland (city), Vermont, Rutland, Vermont, United States. It was chartered in Vermont on November 13, 1847, and built between Rutland and Eagle Bridge, New York, Eagle Bridge in ...

, during the

. Gould purchased stock for 10 cents on the dollar, which left him in control of the company. He engaged in more speculation on railroad stocks in New York City throughout the

Civil War A civil war is a war between organized groups within the same Sovereign state, state (or country). The aim of one side may be to take control of the country or a region, to achieve independence for a region, or to change government policies.J ...

, and he was appointed manager of the

Rensselaer and Saratoga Railroad The Rensselaer and Saratoga Railroad was a railway company that operated in the states of New York and Vermont in the 19th century. At its peak it controlled a network. The Delaware and Hudson Railway leased the company in 1871 and formally ...

in 1863. The

Erie Railroad The Erie Railroad was a railroad that operated in the Northeastern United States, originally connecting Pavonia Terminal in Jersey City, New Jersey, with Lake Erie at Dunkirk, New York. The railroad expanded west to Chicago following its 1865 ...

encountered financial troubles in the 1850s, despite receiving loans from financiers

Cornelius Vanderbilt Cornelius Vanderbilt (May 27, 1794 – January 4, 1877), nicknamed "the Commodore", was an American business magnate who built his wealth in railroads and shipping. After working with his father's business, Vanderbilt worked his way into lead ...

and

Daniel Drew Daniel Drew (July 29, 1797 – September 18, 1879) was an American businessman, steamship and railroad developer, and financier, one of the " robber barons" of the Gilded Age. Summarizing his life, Henry Clews wrote: "Of all the great oper ...

. 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 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 pri ...

, and Drew, Fisk, and Vanderbilt lost control of the Erie in the summer of 1868, while Gould became its president.

Tammany Hall

During the same period, Gould and Fisk became involved with

Tammany Hall Tammany Hall, also known as the Society of St. Tammany, the Sons of St. Tammany, or the Columbian Order, was an American political organization founded in 1786 and incorporated on May 12, 1789, as the Tammany Society. It became the main local ...

, the Democratic Party

political machine In the politics of representative democracies, a political machine is a party organization that recruits its members by the use of tangible incentives (such as money or political jobs) and that is characterized by a high degree of leadership c ...

that largely ran New York City at the time. They made its "boss", notorious William M. "Boss" Tweed, a director of the Erie Railroad, and Tweed arranged favorable legislation. In 1869, Tweed and Gould became the subjects of critical political cartoons by

Thomas Nast Thomas Nast (; ; September 26, 1840December 7, 1902) was a German-born American caricaturist and editorial cartoonist often considered to be the "Father of the American Cartoon". He was a sharp critic of William M. Tweed, "Boss" Tweed and the T ...

. 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.

Black Friday

Due to the struggle to keep Cornelius Vanderbilt from taking over their interests in railroad, Gould and James Fisk engaged in financial manipulations. In August 1869, Gould and Fisk conspired to begin to buy gold in an attempt to illegally

corner the market In finance, cornering the market consists of obtaining sufficient control of a particular stock, commodity, or other asset in an attempt to manipulate the market price. Companies that have cornered their markets have usually done so in an attemp ...

. Gould used contacts with President

Ulysses S. Grant Ulysses S. Grant (born Hiram Ulysses Grant; April 27, 1822July 23, 1885) was the 18th president of the United States, serving from 1869 to 1877. In 1865, as Commanding General of the United States Army, commanding general, Grant led the Uni ...

's brother-in-law,

Abel Corbin Abel Rathbone Corbin (May 24, 1808 – March 28, 1881) was an American newspaper editor, financier, and the husband of Virginia Grant, sister of President Ulysses S. Grant. In the 1830s, he edited the ''Missouri Argus'' of St. Louis, the off ...

, to influence the president and his Secretary General,

Horace Porter Horace C. Porter (April 15, 1837May 29, 1921) was an American soldier and diplomat who served as a lieutenant colonel, ordnance officer and staff officer in the Union Army during the American Civil War, personal secretary to General and Presid ...

. These speculations culminated in the financial panic of Black Friday on September 24, 1869, when the greenback (cash) premium over face value of a gold double eagle fell from 62 percent to 35 percent. Gould made a small profit from that operation by hedging against his own attempted corner as it was about to collapse, but 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. Favored by

Tweed Ring William Magear "Boss" Tweed (April 3, 1823 – April 12, 1878) was an American politician most notable for being the political boss of Tammany Hall, the Democratic Party's political machine that played a major role in the politics of 19th ...

judges, the conspiratorial partners escaped prosecution, but the months of economic turmoil that rocked the nation following the failed corner proved ruinous to farmers and bankrupted some of the most venerable financial institutions on

Wall Street Wall Street is a street in the Financial District, Manhattan, Financial District of Lower Manhattan in New York City. It runs eight city blocks between Broadway (Manhattan), Broadway in the west and South Street (Manhattan), South Str ...

More railroads

Erie Railroad

In 1873, Gould attempted to take control of the

by recruiting foreign investments from

Lord Gordon-Gordon Lord Gordon-Gordon ( 1840 – August 1, 1874), also known as Lord Gordon Gordon, Lord Glencairn, and The Hon. Mr. Herbert Hamilton, was a British impostor responsible for a major swindle in 19th century United States. He swindled a million doll ...

, 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 was granted bail while the references were checked. He immediately fled to

Canada Canada is a country in North America. Its Provinces and territories of Canada, ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, making it the world's List of coun ...

, where he convinced authorities that the charges were false. Having failed to convince Canadian authorities to hand over Gordon-Gordon, Gould attempted to kidnap him, with the help of his associates, and future members of Congress, Loren Fletcher,

John Gilfillan John Bachop Gilfillan (February 11, 1835 – August 19, 1924), known as J.B., was a Minnesota politician and lawyer active in the late 19th century. Early life Gilfillan was born on February 11, 1835, in Caledonia County, Vermont. He atte ...

, and Eugene McLanahan Wilson. The group did capture Gordon-Gordon, but they were stopped and arrested by the

North-West Mounted Police The North-West Mounted Police (NWMP) was a Canadian paramilitary police force, established in 1873, to maintain order in the new Canadian North-West Territories (NWT) following the 1870 transfer of Rupert's Land and North-Western Territory to ...

before they could return to the US. Canadian authorities put them in prison and refused them bail, which led to an international dispute between the United States and Canada. When he learned that they had been denied bail, Governor

Horace Austin Horace Austin (October 15, 1831November 2, 1905) was an American politician. He served as the List of Governors of Minnesota, sixth Governor of Minnesota from January 9, 1870, to January 7, 1874. He was a United States Republican Party, Republica ...

of Minnesota demanded their return, and he put the local militia on full readiness. Thousands of Minnesotans volunteered for an invasion of Canada. After negotiations, the Canadian authorities released the men on bail. Gordon-Gordon was eventually ordered to be deported, but committed suicide before the order could be carried out.

Western railroads

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 The Union Pacific Railroad is a Class I freight-hauling railroad that operates 8,300 locomotives over routes in 23 U.S. states west of Chicago and New Orleans. Union Pacific is the second largest railroad in the United States after BNSF, ...

in 1873, after its stock had been depressed by the

Panic of 1873 The Panic of 1873 was a financial crisis that triggered an economic depression in Europe and North America that lasted from 1873 to 1877 or 1879 in France and in Britain. In Britain, the Panic started two decades of stagnation known as the "L ...

, 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 of the network 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." By 1879, Gould had gained control of two important Western railroads, including the

Missouri Pacific Railroad The Missouri Pacific Railroad , commonly abbreviated as MoPac, was one of the first railroads in the United States west of the Mississippi River. MoPac was a Class I railroad growing from dozens of predecessors and mergers. In 1967, the railroad o ...

and the Denver and Rio Grande Railway. He controlled of railway, about one-ninth of the rail network in the United States at that time. He obtained a controlling interest in the

Western Union The Western Union Company is an American multinational financial services corporation headquartered in Denver, Denver, Colorado. Founded in 1851 as the New York and Mississippi Valley Printing Telegraph Company in Rochester, New York, the co ...

telegraph company and, after 1881, in the elevated railways in New York City, and he had a controlling interest in 15 percent of the country's railway tracks by 1882. The railroads were making profits and could set their own rates, so his wealth increased dramatically. Gould 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. In 1889, he organized the

Terminal Railroad Association of St. Louis The Terminal Railroad Association of St. Louis is a Class III switching and terminal railroad that handles traffic in the St. Louis metropolitan area. It is co-owned by five of the six Class I railroads that reach the city. Present operation Th ...

, which acquired a bottleneck in east–west railroad traffic at St. Louis but, after Gould died, the government brought an antitrust suit to eliminate the bottleneck control.

Criticism and appraisal

Gould was extensively criticized during his lifetime, on the basis that he was a trader rather than a builder of businesses, and of being unscrupulous, although more recent appraisal has suggested that his business ethics were not unusual for the time.

Anarcho-capitalist Anarcho-capitalism (colloquially: ancap or an-cap) is a political philosophy and economic theory that advocates for the abolition of Sovereign state, centralized states in favor of Stateless society, stateless societies, where systems of p ...

economist

Murray Rothbard Murray Newton Rothbard (; March 2, 1926 – January 7, 1995) was an American economist of the Austrian School,Ronald Hamowy, ed., 2008, The Encyclopedia of Libertarianism', Cato Institute, Sage, , p. 62: "a leading economist of the Austri ...

said that Gould's business practices were unfairly maligned, because he was supposedly one of the only railroad financiers who consistently undermined the railroad cartels' proposed rate fixing by starting new railroad lines, thus driving rates down for consumers.

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.

New York City Landmarks Preservation Commission The New York City Landmarks Preservation Commission (LPC) is the Government of New York City, New York City agency charged with administering the city's Historic preservation, Landmarks Preservation Law. The LPC is responsible for protecting Ne ...

New York City Landmarks Preservation Commission: "West-Park Presbyterian"
nyc.gov; accessed September 25, 2018. He married Helen Day Miller (1838–1889) in 1863 and they had six children. Together with his son George, Gould was a founding member of American Yacht Club. He owned the steam yacht Atalanta (1883). In 1880, he purchased the

Gothic Revival Gothic Revival (also referred to as Victorian Gothic or neo-Gothic) is an Architectural style, architectural movement that after a gradual build-up beginning in the second half of the 17th century became a widespread movement in the first half ...

mansion Lyndhurst (sometimes spelled "Lindhurst"), to use as a country house. On December 2, 1892, Gould died of

tuberculosis Tuberculosis (TB), also known colloquially as the "white death", or historically as consumption, is a contagious disease usually caused by ''Mycobacterium tuberculosis'' (MTB) bacteria. Tuberculosis generally affects the lungs, but it can al ...

, then referred to as consumption, and was interred in the Woodlawn Cemetery, The Bronx, New York. For tax purposes, his fortune was conservatively estimated at $72 million (equivalent to $ in ), which he willed in its entirety to his family. At the time of his death, Gould was a benefactor in the reconstruction of the

Reformed Church Reformed Christianity, also called Calvinism, is a major branch of Protestantism that began during the 16th-century Protestant Reformation. In the modern day, it is largely represented by the Continental Reformed Christian, Presbyterian, ...

(in Delaware County, eastern end of the

Southern Tier The Southern Tier is a geographic subregion of the broader Upstate New York, Upstate region of New York (state), New York State, geographically situated along or very near the state border with Pennsylvania. Definitions of the region vary wide ...

), now known as the Jay Gould Memorial Reformed Church. It is located within the Main Street Historic District and listed on the

National Register of Historic Places The National Register of Historic Places (NRHP) is the Federal government of the United States, United States federal government's official United States National Register of Historic Places listings, list of sites, buildings, structures, Hist ...

in 1988. The family mausoleum was designed by Francis O'Hara.

Descendants

Gould married Helen Day Miller (1838–1889) in 1863. Their children were: *

George Jay Gould I George Jay Gould I (February 6, 1864 – May 16, 1923) 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 Manhatt ...

(1864–1923), married Edith M. Kingdon (1864–1921) ** Kingdon Gould Sr. (1887–1945), married Annunziata Camilla Maria Lucci (1890–1961) **

Jay Gould II Jay Gould II (September 1, 1888 – January 26, 1935) was an American real tennis player and a grandson of the railroad magnate Jay Gould. He was the world champion (1914–1916) and the Olympic gold medalist (London, 1908, then und ...

(1888–1935), married Anne Douglass Graham ** Marjorie Gould (1891–1955), married Anthony Joseph Drexel III ** Helen, Lady Decies (1893–1931), married John Graham Hope DeLaPoer Horsley Beresford (1866–1945) ** George Jay Gould II (1896–1963), married Laura Carter ** Edith Catherine Gould (1901–1937), married Carroll Livingston Wainwright I (1899–1967), then Sir Hector Murray MacNeal **

Gloria Gould Gloria Gould (March 3, 1906 – August 16, 1943) was an American socialite who was the daughter of industrialist heir George Jay Gould I. Early life She was born on March 3, 1906, the youngest daughter of George Jay Gould I. She was one of ...

(1906–1943), married Henry A. Bishop II, then Walter McFarlane Barker *

Edwin Gould I Edwin Gould Sr. (February 26, 1866 – July 12, 1933) was an American railway official, investor and member of the wealthy Gould family. Early life Gould was born in Manhattan, New York City, to railroad financier Jay Gould on February 26, 1866 ...

(1866–1933), married Sarah Cantine Shrady ** Edwin Gould Jr. (1894–1917), died on

Jekyll Island Jekyll Island is an island located in Glynn County, Georgia, United States. It is one of the Sea Islands and one of the Golden Isles of Georgia barrier islands. The island is owned by the State of Georgia and run by a self-sustaining, self-g ...

in 1917 ** Frank Miller Gould (c. 1895–1945), married Florence Amelia Bacon, died on January 13, 1945 * Helen Gould (1868–1938), married Finlay Johnson Shepard (1867–1942) They adopted three children. *

Howard Gould Howard Gould (June 8, 1871 – September 13, 1959) was an American financier and the son of Jay Gould. Early life Gould was born in Manhattan on June 8, 1871 to railroad financier Jay Gould (1836–1892) and Helen Day Miller (1838–1889). He w ...

(1871–1959), married Viola Katherine Clemmons on October 12, 1898, then actress

Grete Mosheim Margarete Emma Dorothea "Grete" Mosheim (8 January 1905 – 29 December 1986) was a German film, theatre, and television actress. Early life Mosheim was born in Berlin, Germany on 8 January 1905, the daughter of a Jewish man, Markus Mosheim (18 ...

in 1937 * Anna, Duchess de Talleyrand-Périgord (1875–1961), married Paul Ernest Boniface,

Comte de Castellane Castellane (; Provençal dialect, Provençal Occitan language, Occitan: ''Castelana'') is a Communes of France, commune in the Alpes-de-Haute-Provence Departments of France, department in the Provence-Alpes-Côte d'Azur Regions of France, region ...

(1867–1932), then Hélie de Talleyrand-Périgord, 5th Duke of Talleyrand, 5th Duc of Dino, 4th Duke von Sagan, and Prince of Sagan (1858–1937). **Children with Boniface: *** Marie Louise Boniface de Castellane (1896–?), died during infancy or early childhood *** Antoine Boniface, Marquis de Castellane (1896–1946), married Yvonne Patenôtre *** Georges Paul Ernest Boniface de Castellane (1897 or 1899–1944), married Florinda Fernández y Anchorena (1901–?) *** Georges Gustave Boniface de Castellane (c. 1898–1946) *** Jay Boniface de Castellane (1902–1956) ** Children with Talleyrand: *** Howard de Talleyrand, duc de Sagan (1909–1929), he killed himself when told that he could not immediately marry a girl he met in school *** Helen Violette de Talleyrand-Périgord (1915–2003), married James Robert de Pourtales on March 29, 1937, then

Gaston Palewski Gaston Palewski (20 March 1901 – 3 September 1984), a French politician, was a close associate of Charles de Gaulle during and after World War II. He is also remembered as the lover of the English novelist Nancy Mitford, and appears in a fic ...

(1901–1984) *

Frank Jay Gould Frank Jay Gould (December 4, 1877 – April 1, 1956) was a philanthropist and a member of the wealthy Gould family. He was the owner of French Riviera casinos and hotels. Biography He was born on December 4, 1877, in Manhattan, New York Cit ...

(1877–1956), married Helen Kelley; then Edith Kelly; then Florence La Caze (1895–1983)

Citations

General and cited references

* * * * *

External links

Excerpts from Gould's ''New York Times'' obituary

Obituary
by the '' Iowa City Daily Citizen''
History of Delaware County and Border Wars of New York
{{DEFAULTSORT:Gould, Jay 1836 births 1892 deaths American Calvinist and Reformed Christians American cartographers American financiers American industrialists 19th-century American railroad executives Burials at Woodlawn Cemetery (Bronx, New York) Burials in the Jay Gould Mausoleum American people of Scottish descent 19th-century deaths from tuberculosis Charles W. Fairbanks

Jay Gould Jason Gould (; May 27, 1836 – December 2, 1892) was an American railroad magnate and financial speculator who founded the Gould family, Gould business dynasty. He is generally identified as one of the Robber baron (industrialist), robber bar ...

People from Roxbury, New York Union Pacific Railroad people Tuberculosis deaths in New York (state) American Presbyterians Western Union people Gilded Age