Chapter 2

Mr. Vanderbilt, like all successful men, made finance a study; he foresaw that there were great profits to be realized in the near future in the undeveloped railway systems in the country. To see a chance was to at once set about planning to improve it. He at once began to withdraw his money from the water and invest in railroads, which were then coming rapidly to the front. The wisdom of Vanderbilt can be seen, for at the beginning of the war, which he had been long expecting, his money was all transferred from the water, and thus his interests were not jeopardised by the war made upon our commerce. He, however, had owned so many vessels, that he had long since been known as Commodore Vanderbilt, in fact few people to-day know him by any other name. He, at the beginning of hostilities, presented the government with a magnificent steamship, the "Vanderbilt," worth $800,000. When he entered the railroad business he was estimated at from thirty-five to forty millions. He had dealt somewhat in New York and New Haven, and now began to buy Harlem when it was in a most helpless and depressed condition. He advanced a large sum to the company when it was in need, and for this, among other things, he was made its President in 1863. By judicious management and influences common in 'The street,' he successfully ran Harlem from thirty to two hundred and eighty-five. Such a man was just what the New York Central railroad desired, and after this great 'bulling' movement he became President of that road. All that was needed now was the Hudson River road and this he bought outright, becoming President of the New York Central and Hudson River Rail Road, extending from New York to Buffalo.

At one time there was a bill to be voted on at Albany; the bill was in the interest of Harlem; Mr. Vanderbilt was sure it would pass, but Daniel Drew, his antagonist, who ever fought Harlem or Central as they were against Erie, caused a counter movement to be made which defeated the bill. Vanderbilt heard of it, and of course was disappointed but made no foolish protests with the treacherous 'friends' at the capitol. In the meantime these people were selling Harlem short for future delivery, expecting that the stock would "take a tumble" when it became known that the bill was defeated. As before said Vanderbilt said nothing, but quietly bought up every scrap of stock there was to be found loose. The fatal day came but Harlem stood firm. The derelict Assemblymen were thunderstruck when they had to buy at a greatly enhanced price, and many of the would-be victors were ruined. In 1873 the Lake Shore & Michigan Southern railroad was operated in connection with the Vanderbilt system, making a Palace Car route from New York city to Chicago. From New York to Buffalo a quadruple track, thence a double track.

Among the charities of Mr. Vanderbilt is a gift of three-quarters of a million to the University in Nashville, Tennessee, which bears his name. He died in 1877 worth about eighty millions.

AMOS LAWRENCE.

Amos Lawrence was born April 22nd, 1786. He was a weak child, consequently could not attend school, but his mother did not neglect him. When only thirteen years old he became a clerk in a country store. In this store was kept everything in the hardware line, from a plow to a needle; in the textile line, from a horse-blanket to a pocket handkerchief; then you could buy the productions usually found in a vegetable garden,--everything was kept, even to Jamaica rum and drugs for the sick; a good place, indeed, for a bright, active boy to gain new ideas. Each country store, in those days, had its bar, and the clerks were as likely to be called on to mix drinks, as they were to be asked to measure off dry goods, and it was considered as honorable. Not only this, but it was customary for clerks to take a drink themselves, but young Lawrence determined to neither drink nor smoke. True, he liked the taste of liquor, and enjoyed a quiet smoke, but he argued that such pleasures, not only eat up profits already earned, but left the system in a poor condition to earn more. When we consider that he was a mere lad of thirteen, or at best fourteen, when he had decided upon this honorable course, and when we think that at least, for the time being, these luxuries would have cost nothing, we are constrained to say, no wonder he became a rich man.

If our young men would only save the money they yearly smoke up and spend for other needless things, we would have clearer headed and much wealthier men. Our young men all desire to gain wealth and the highest enjoyments possible in this world, but are not willing to pay for them. If they would examine the lives of a great many of our most wealthy and influential men of to-day, they would be surprised to learn how few even smoke.

If you see a man with a high hat, gaudily dressed, smoking and seemingly inviting your attention at some horse trot, where he is making a great display of wealth in the way of bets, you can set it down as pretty certain that that man is a clerk working for $10 or $15 per week, or at best, a mere curb-stone broker who will never rise to anything higher. Real wealth and distinction never invite your attention. One would hardly take that plain old gentleman, walking along the street yonder, for other than a country deacon, yet the check of Russell Sage will be recognized and honored to the amount of millions. Jay Gould never enjoys himself more than when at home.

We spend as a nation now, every year, NINE HUNDRED MILLIONS FOR LIQUOR and THREE HUNDRED and FIFTY MILLIONS for TOBACCO. Total, ONE BILLION, TWO HUNDRED and FIFTY MILLIONS. One billion, two hundred and fifty millions thrown away. More than twice what we use for bread and meat. Then look at that vast waste of unearned wages. Man can't do two things well at one time. In our large cities we have, of late, seen drunken men, with pipes in their mouths, carrying about the streets a banner inscribed, "bread or blood." They propose to make those who have worked intelligently for money, now divide. Would it not look far more sensible if the banner bore the inscription, henceforth, I will boycott the tobacconist, and will vote for no man who is not pledged to suppress the saloon oligarchy?

Amos Lawrence had not the benefit of the philanthropic teaching of our age, but he had a common sense, and a sense of taste and judgment far in advance of his time. These were the principles with which he laid the foundation to that great fortune and enviable reputation which he lived to enjoy, and which his name will ever recall. We have seen that good habits were the foundation of his success. He also improved his opportunities. He became perfectly familiar with the drug department of the store. He determined early in life to become a wealthy and influential man. To determine to do anything is half the battle. "Doubt indulged becomes doubt realized." "To think a thing impossible is to make it so." "Courage is victory, timidity is defeat." Men who understand these maxims are men who invariably succeed. I say invariably--a man may think he understands when he is groping in midnight darkness. A young man who really is destined to succeed, not only INTENDS to become a rich man, or whatever he aspires to be, but lays plans to that end, and is not discouraged if they are blasted. He only recognizes that he is foiled, for the time being, and never doubts his ability to succeed ultimately. There is a difference between a blustering braggadocio and a quiet, unassuming confidence in one's self. One leads to certain victory, the other, to as certain defeat.

Young Lawrence had served his seven long years of apprenticeship, and had no better opportunity presented itself, he would have succeeded, for he had his plans carefully laid to remain in Groton, and if he had, he would have succeeded. But a merchant who had seen him at the store of his employer, no sooner learned of his release than he immediately hired him to come to Boston to enter his store there. "Seest thou a man diligent in his business, he shall stand before kings, he shall not stand before mean men." Thither he went part of the way on foot; the rest of the way with an accommodating neighbor who was driving in that direction. He determined to make for himself here a record for honesty, and so well did he succeed, that the next year he started business for himself, his principal capital being his reputation and acknowledged ability. He developed a system in his business; he paid every bill on the spot; if he could not pay cash, instead of the regular custom of book accounts, he gave his note, thus no complications could arise to embarrass him. He knew when the money was expected on every bill, and made his calculation, and was never known to be taken by surprise. He was reasonably cautious--he never would promise to do what he might possibly be unable to accomplish. He prospered--of course he would. Such business principles, pushed by system as Lawrence pushed them, must bring success to any young man.

Another thing, to any one who may now imagine he, perhaps, entered business on the tide of prosperity, we desire simply to say, on the contrary, from 1808 to 1815 was one of the dullest periods our mercantile history can recount. No, "luck" did not favor him, but "pluck" did. He pushed his mercantile business for years, amassing an immense fortune. Our country was then new, and he had to import most of his merchandise from England, but as he ever made a study of his business, concluded that he would start manufacturing industries here, which would prove not only profitable to himself, but of inestimable value to us as a nation. In accordance with these motives, he was largely instrumental in connection with the Lowells in building up the flourishing cities of Lowell and Lawrence.

He never speculated in stocks. Young men, there is no money in stocks to the average man. Not even in legitimate stock dealing, to say nothing of the numerous watered concerns. We were looking over a paper recently when our attention was attracted to a paragraph which explained that in a transaction which involved 8,000 bushels of wheat, it was found that the odds against the buyer was over 22 per cent. While wheat is not stocks, still a good rule would be never to go into anything unless the chances are at least equal.

Amos Lawrence once said: "Young man, base all your actions upon a sense of right, and in doing so, never reckon the cost." What a glorious principle for any young man--a principle he would find hard to follow in many stock speculations. "Even exchange is no robbery." It is not even exchange to bet and take a man's money; and it makes little difference whether you bet on a horse's gait or the grain he will eat next month. At another time he said: "Good principles, good temper, and good manners will carry a young man through the world much better than he can get along with the absence of either." His sayings are numerous, yet every one is worthy of attention; all of them have a golden thought for old and young.

Mr. Lawrence did not give away in large amounts to institutions of learning, but he kept two rooms in his house wholly for the storage of articles designed to relieve poor people. One contained clothing of every description; the other, food and other necessaries of life. He gave away during his life, over $700,000, and when he died people mourned that he had gone, for there were none left that could take his place. Ah! this is success. He died December 31st, 1852.

HORACE B. CLAFLIN.

This great dry-goods prince was born at Milford, Massachusetts, in 1811, and his education was attained in the public schools of that place. When he became of age he bought out the store in which he was clerk, and in company with another young man began business for himself. But this place was too small for the already expanding vision of both Claflin & Daniels; they accordingly moved to Worcester. The latter place proving yet too small for Claflin, we soon see him located in Cedar street, New York, where he finds himself somewhat satisfied for a time. After a period of successful trade--extending over six years' time, the young men were compelled to find more commodious quarters, which they found at No. 57 Broadway, and two years later they moved once more, locating in the Trinity Building. 1860 came, their business was found to amount to about $12,000,000 annually, and the firm resolved to build a store, for themselves. The result was an immense dry-goods palace. The retail business was entirely abandoned, and Claflin at once sprung to the front as the leading wholesale dry-goods merchant of America.

One day, about five o'clock, Mr. Claflin sat in his private office when a young man, pale and careworn, timidly knocked and was asked in. "Mr. Claflin," said he, "I am in need of help. I have been unable to meet certain payments because certain parties have not done by me as they agreed. I would like to have $10,000. I come to you because I knew that you were a friend of my father, and I thought possibly you might be a friend to me." "Come in and have a glass of wine," said Claflin. "No," said the young man, "I never drink." "Have a cigar?" "No, I never smoke." "Well," replied Claflin, "I am sorry but I don't feel that I can let you have the money." "Very well," replied the young man, "I thought perhaps you might; hence I came. Good day, sir." "Hold on," said Claflin. "You don't drink?" "No." "Nor smoke?" "No sir." "Nor gamble?" "No sir; I am superintendent of a Sunday-school, in ---- street." "Well," said Claflin, "you shall have it." This was characteristic of the man. This anecdote well illustrates his character. He was an everyday Christian.

On November 14, 1885, he passed away, leaving one more gap in the commercial world, and in the membership of Plymouth Church, of which he had been a member many years. Probably no one man missed him more at the time of his death than did Henry Ward Beecher, of whom he had long been a devoted admirer.

WILLIAM E. DODGE.

When one finishes the perusal of the life of William E. Dodge, he feels a thrill of unbounded admiration. A man who would resign his membership in the Union League Club, because it sold wine to its members; who disposed of valuable investments in three different railroads, when a majority of the stockholders voted to run Sunday trains; who, while carrying on a large mercantile business, and managing an extensive stock and real estate business, yet found time to preside at the Chamber of Commerce and serve on numerous committees, and held a directorship in various banking institutions, is surely to be admired.

His religious life was never weakened by his prosperity, and the more money God blessed him with, the more religious societies he became connected with.

William E. Dodge was born in the year 1805, near Hartford, Connecticut. He began at the foot of the ladder, taking down shutters and sweeping out the store in which he was employed. When twenty-one, he went into business in a small way, doing a retail business, which prospered, and at the end of three years Mr. Dodge felt able to support a wife.

In 1834 he was invited to become a partner in the firm with his father-in-law, Mr. Anson Phelps, and a brother-in-law, under the firm-style of Phelps, Dodge and Company. This connection proved a most profitable business venture, and at the end of twenty years Mr. Dodge was accounted a wealthy man. Looking about for investments, his keen perception espied a vast fortune in lumber, and then followed those vast accumulations of timber lands, by buying thousands of acres in West Virginia, Michigan, Wisconsin, Georgia and Canada.

He also became greatly interested in coal lands, and as he must find a conveyance to bring his coal to market, he was naturally drawn into railroad schemes. His ability and enterprise soon placed him on the board of directors for such roads as the Delaware, Lackawanna and Western, and New Jersey Central, being at one time President of the Houston and Texas.

He helped found several of the most noted Insurance Companies in the country, and was a director until his death, of the Greenwich Saving Bank, City Bank, The American Exchange National Bank, the United States Trust Company, the Bowery Fire Insurance Company, and the Mutual Life Insurance Company. He was President of the Chamber of Commerce, and owned a very large number of saw-mills, besides carrying on the regular business of the firm. What will those people, who would do this or that if they only had time, say to all this work done by one man who then found time to serve on the board of management of religious organizations innumerable?

He was a great temperance advocate, giving thousands of dollars annually toward the support of various societies. There were others who had wealth, and gave possibly as much to the betterment of mankind as did Dodge, but we cannot now recall any man of great wealth who would deny himself as much personally, beside giving, as he did. In fact he seemed to be crowded to death with work, yet he never refused to aid all who were worthy applicants. For years he gave away annually over $200,000, yet it was found at his death, February, 1883, that his wealth amounted to something like $5,000,000, a large share of which was also given to charitable purposes.

JAY GOULD.

We have written the lives of journalists, of eminent statesmen, but we are now going to write the life of one of the most powerful men in America. A man who has far greater influence over his fellow-men than many a king or emperor, and a man who has played a most prominent part in the development of our Republic.

Such a man is Jay Gould to-day who has risen to this dizzy height, from a penniless boy on his father's farm, which he left at the age of only fourteen to seek his fortune. He asked his father's permission first, which was readily given, he thinking it would cure the boy of his restlessness, and when young Gould left, his father fully expected to see him again within a few days, but even the father was mistaken in calculating the stick-to-it-iveness of the son. He at last found employment in a store where he remained two years when his health compelled outdoor work. He therefore obtained employment carrying chains for some surveyors at $10 a month. These men were making surveys from which an Albany publishing firm expected to issue maps for an atlas they were getting out. Not only did Gould carry the chains but he improved every opportunity for picking up points in surveying. We see one characteristic of the man plainly showing itself at this early age, for when the firm failed, Gould had the maps published himself, and then personally sold enough of them to clear $1,000. With this start he went to Pennsylvania, and was employed in a tannery. As one sees, nearly every successful man owes that success largely to the cultivation of pleasing manners, so it was with Gould. So apparent was his ability, and so well did he please his employer, that the man set Gould up in business at Gouldsborough, where he cleared $6,000 within the next two years. Gould was not satisfied with this moderate success, fine as it seemed to be; he only regarded these enterprises as stepping-stones to something higher. He next enters the metropolis where he buys and sells hides in a small office at No. 49 Gold street.

About this time Gould met a young lady at the Everett House, where he lived, whose acquaintance was destined to have a marked influence over his subsequent career. This bright, handsome girl attracted his attention so unmistakably that Miss Miller noticed it. A little flirtation took place which ripened into a mutual affection, and they were married without waiting for the parents' approval, probably Gould knew better, as the young lady, at the time was far above his station in life as society would say, hence acted in this matter as he would in any business transaction he entered.

Of course, this aroused Mr. Miller's righteous indignation, but he soon realized that Mr. Gould was a man of no ordinary calibre and wisely changed his course toward him. Mr. Miller owned a large interest in the Rensselaer & Saratoga Railroad, and young Gould, after visiting the same, concluded that it could be made to pay. He accordingly bought the entire stock his father-in-law owned, notwithstanding the stock was considered all but worthless. He immediately disposed of all other business, and assumed the management of the road by buying up as much of the remaining stock as seemed necessary to give him supreme control. He at once became Manager, Superintendent and Treasurer. When the stock had multiplied upon itself many times, he sold out, receiving in all $750,000, for his interest. This first scheme illustrates his line of procedure in most of those seemingly mysterious movements which have marked his uniform success; namely, to find some road which was almost worthless and, if he thought good management would bring it up, secretly buy the controlling interest in the line, and when it reached a fair figure, sell. The Rutland & Washington was offering stock at ten cents on the dollar; he at once bought it up and managed it so well that he soon was enabled to sell at 120, making, as most people would think, a fortune.

Cleveland & Pittsburg was for a long time in a precarious condition, perceiving which, Mr. Gould bought up all the stock he could find, and threw his whole ability and experience into the development of the same. The stock soon took an upward move, and when it reached 120 he sold his twenty-five thousand shares. We next see him buying Union Pacific at fifteen. This stock kept falling, but while others sold continually at a sacrifice, and seemed glad to unload at any figure, the lower it went the more Gould bought. After securing a controlling interest as desired, he began to develop the iron industries along the line, which of course soon gave the road business. This and other causes soon set Union Pacific "booming," and the stock began to rise. No sooner, however, did the disappointed capitalists see their mistake in selling than the cry was raised: "That is Gould's road and if you touch it you will surely be burnt." But despite all this the stock gradually rose, and in 1879 Mr. Gould sold the whole hundred thousand shares that he owned to a syndicate. It must not be supposed, however, that Mr. Gould sold to satisfy public clamor--Mr. Gould is not that kind of a man.