Chapter 3

How much he was worth when he went into Erie no one knows, but it was no inconsiderable amount. After Mr. Drew's suit with Vanderbilt, whereby the latter lost seven millions, Mr. Gould was made President of Erie, and the capital stock was increased to two hundred and thirty-five thousand shares, which stood about fifty-seven and one-half million. This brought the price down to 44. It was determined to sink Erie still lower, so Gould, Fisk and Drew locked up greenbacks to the amount of one million four hundred thousand. By a false movement on Drew's part, which his partners considered treacherous, they accordingly lost, and at once unlocked greenbacks, thereby stock advanced and Drew, instead of gaining, lost one million five hundred thousand, as he was seven thousand shares short. The price of the shares continued upward and Gould was obliged to get it down by some means in order to save himself. He therefore inaugurated a "bull" movement on gold. A. R. Corbin, brother-in-law of the President, Mr. Grant, was selected to sound the government, who reported that it was not intended to put any gold on the market for the present, at least. The clique at once bought millions more of gold than was to be had in the city outside of the Sub-Treasury. Up, up, went gold; 130 is reached, and next 133-1/2, then 134; still the order is buy; buy all that is for sale. The price reaches 144, but nothing daunted, the clique still buy in order to force the shorts to cover; yet on up it goes. Black Friday week is upon them, but Jay Gould is now selling while others are still buying right and left. Of course, he still pretends to buy, but is secretly selling at 165. At last the crash came, when the Secretary of the Treasury sold four millions on the street, and Gould is nearly the only one who is safe. This may look crooked--it certainly is not Puritan, but there are features of Jay Gould's success which are not praiseworthy; however, we claim there are many things that are worthy of imitation, hence it is here given in detail. He next bought Kansas & Texas at 8 and ran it to 48. He purchased Wabash at 5, and this, under his management, rose to 80 preferred.

Where Mr. Gould has shown the greatest skill in his line, is his connection with the transactions with the Western Union. Desiring to secure control of that company, he went into American Union, and within one year it was a formidable rival, which he substituted for the Western Union wires on his roads, and that company's stock fell from 116 to 88. If it is true, as stated, that Gould was short 30,000, he must have cleared on this one transaction $840,000. This method is so unlike his usual tactics that we are inclined to disbelieve it; however, his dealings all through, it is claimed, seem to prove it. He next caused a war of rates to be announced between his company and Western Union, and of course, the stock of the latter dropped still lower. The story was then circulated that he was to become a director of Western Union, and no war would take place; up that stock went to 104. But when the day came for the election, no Gould was to be seen, and back down it tumbled. It is reasonably supposable that Gould profited by each of these fluctuations. American Union became a fixed thing, and Western Union becoming alarmed at renewed rumors of war, at once caused Mr. Gould to be seen, and he to-day owns twenty millions of Western Union. His Missouri, Pacific and other lines, together with his elevated railroad schemes, are somewhat familiar topics with our readers.

The career of such a man is a type and a proof of the progress of our land and the boundless opportunities that are open to energy and ability. Jay Gould has attained this dizzy height from poverty and obscurity. Unlike many rich men he is not a "fast" man. He is an excellent husband and father; he is never so happy, seemingly, as when at home sharing the family hearth, while others, who are more widely respected, are at their clubs. Jay Gould has been the subject of much abuse; indeed, what great men have not been? He is often described as a heartless oppressor of the poor and an enemy of his country. These accusations can often be traced to jealous rivals. While he has made millions in the new systems he has opened in the West, our territories and new States have been wonderfully developed and enriched billions of dollars. We honestly believe that the wonderful growth of the Western country would have been utterly impossible but for such men as Gould. If there had not been money in it their energy would have been lacking, and without that energy they must have lain dormant until other capitalists had opened the way to progress. That it takes a vast capital to develop the resources in a new country must be plain to every one. Show me a town which is blessed with men of capital and enterprise, and I will show you a town that is prosperous. Show me a town which has little of either, and I will show you a town in which you would hate to live.

Mr. Gould appears to be a man whom nothing would excite; and one of his brokers says of him: "You never can tell from his expression when he reads a telegram whether he has made five millions or lost ten." Reticence is one secret of Mr. Gould's success. He absolutely cannot be induced to say anything which he desires kept. He is on the whole the most incomprehensible of New Yorkers. He is an embodiment of the money-making faculty. It would be a hard question to tell what Gould is worth. I know men who believe that he is to-day the richest citizen in New York. I know others who are confident that he is not worth over one million, and others who are certain that he is on the eve of bankruptcy, but this last is preposterous.

His wealth is, of course, subject to fluctuation, and possibly Mr. Gould himself could not tell its exact magnitude; certainly no one knows, unless he does, what the precise amount is; but the writer would say at least seventy-five millions. Indeed, if the truth was known, we would not be surprised if it would amount to nearly one hundred millions.

He is incessantly engaged in great operations, and these cannot be managed without vast sums. He is determined that no one shall be acquainted with his affairs. Despite this outward immobility, the strain of these colossal operations upon his brain and nerves cannot be otherwise than very wearing. It is said that he is troubled with sleeplessness, and that many of his gigantic schemes are worked out while he is lying in bed awake. Occasionally he gets up at night, lights the gas, walks the floor and tears paper into bits. It may be remembered that Fisk testified on his investigation by the Congressional Committee respecting the transactions of Black Friday, that he observed Jay Gould tearing up paper and throwing the pieces into the waste-basket, and thus he knew that his partner had some work on hand. He scarcely ever smiles and never lifts his voice above a conversational tone. He has no friends so far as known, but a host of enemies.

His life is in great speculations. His greatest crime in the eyes of his fellow-speculators is, that he succeeds so well in doing to Wall Street, what Wall Street is perpetually, but vainly trying to do to him.

JOHN WANNAMAKER.

In the summer of 1838, John Wannamaker was born in Philadelphia. His father was a brick-maker, and while out of school mornings, nights and Saturdays, the boy John was engaged in turning bricks which were laid in the sun to dry. Thus early those habits of industry were instilled into the lad who, by his own diligence, was destined to one day become the merchant prince of Philadelphia.

A few years later, school was abandoned for steady employment which was found in a store four miles from his home, where he boarded, for he had not the means to do otherwise, thereby walking eight miles per day, aside from his duties at the store, receiving $1.25 each Saturday evening. Think of it, working hard all the week, walking four miles night and morning--in all forty-eight miles per week, and receiving only $1.25 salary for the entire week's work. Afterward he was employed in a law office, and still later we find him in a clothing store at a salary of $1.50 per week. Here he seemed to find the calling which suited his taste, and he cultivated a pleasing disposition; people liked to trade with the young clerk. Of course this faculty, coupled with energy, would soon bring recognition, and it was not long before he was called to responsible positions. Another strong feature of the success of John Wannamaker was, he lived on less than he earned, and saved the balance.

In 1861 he had saved several hundred dollars, and as he had earned a reputation for honesty and ability, he was enabled to start in business on his own account. This firm of Wannamaker & Brown was situated at the corner of Sixth and Market streets. Mr. Wannamaker kept the books--the firm hired no superfluous help--everything that they could do personally they hired no one to do. A firm which possesses ability, and follows such business rules, will succeed. Notwithstanding that the times were unusually "shaky," they prospered.

As the business increased other stores were opened, and John Wannamaker, the poor clerk--after a period of twenty years of enterprise, pushed by energy, controlled a force of 6,000 employes. Not only does the firm handle clothing, but every conceivable article generally found in retail trade, the establishment being the largest in the great city of brotherly love.

How pleasant it is to see men to whom God has bountifully supplied money using that means for the good of their fellow-creatures. Among the liberal, whole-souled millionaires of our country, John Wannamaker is to be found. Although carrying on an immense business he has found time to establish Sunday-Schools, solicit money for the Young Men's Christian Association, and has contributed to these personally, over $100,000.

John Wannamaker is a philanthropist. One of his favorite schemes has been to go into the vilest neighborhoods, establish a Sunday-School, build nice houses, and thus bring the locality up to the plane of respectability. He was looked to for aid when the Centennial was projected, and it is needless to say that it was not found wanting. The secret of his great success is his indefatigable industry, and a thorough mastery of his business. He is one of the most enterprising merchants in history.

ALEXANDER T. STEWART.

The dry-goods prince of the world. A marble palace for a store, which is entered daily by an average of twenty-five thousand people who buy $75,000 worth of merchandise--a business with daily import duties to the Government of $25,000 in gold. When we look at all this, and then remember that he was proprietor, not only of the palace store of America, but had branches in Philadelphia, Boston, Lyons, Paris, Belfast, Glasgow, Berlin, Bradford, Manchester, Nottingham, and other cities throughout the world. When we behold this great success, and then think how he landed in this country a poor Irish lad of sixteen, friendless, homeless, and almost penniless, alone in a strange land, we involuntarily exclaim, "How was such a change in his position brought about?" Why did he succeed, while others all about him who were far better situated, failed? Let us follow him:

He was born at Belfast, Ireland, October 21st, 1802, and in 1818 came to America. He was a mere lad of sixteen. The first work that he obtained was as assistant in a college; here he worked hard, saved his money, and at last he was able to open a small store in the city where he sold dry-goods. When he became twenty-one he was called to his native country to claim a small legacy left him by a relative who had died. He had made a study of his business, hence invested the entire sum in Irish products, and returning to America rented another store on Broadway, and thus began that great importing business. At this time he was his own buyer, salesman, book-keeper and errand boy. Ah! there is the secret of the success of nine-tenths of our great men. They began at the bottom--never hiring help for the mere appearance or convenience of their assistance. They never hired done what they themselves could do. And then there is another thing to remember--beginning thus at the bottom they, of necessity, became thoroughly familiar with the details of their business, hence were never obliged to leave anything to the 'confidential clerk' who has ruined so many business men. Stewart soon felt the need of more room, and was compelled to seek more commodious quarters. After making another move to a larger store-room he made his first purchase of real estate, which was his "down-town" store. After this his "up-town" store was built.

He was a splendid salesman, a perfect gentleman toward customers, and people preferred trading with him rather than any clerk in his employ. His tastes were very simple, and he was always plainly dressed. It has been stated that Mr. Stewart never posed for a photograph, which is a significant fact of itself. His motto was, "Never spend a dollar unless there is a prospect of legitimate gain." He arose early in the morning, went to his "up-town" store, and thoroughly inspected everything; then to his "down-town" store where he attended to his business at that end of the line.

At the breaking out of the Civil War he aided the Union cause very much. Being in sympathy with the principles of the Republican party, and holding a powerful influence over the commercial world, the President, Mr. Grant, nominated him Secretary of the Treasury, and he was at once confirmed by the Senate; but as there is a law prohibiting any merchant in the importing business from holding this position, he was objected to by opposing politicians; and, although he offered to donate the entire profits of his business to the poor of the city of New York, they still objected, and he was obliged to resign. By this, the country was undoubtedly robbed of the services of a man capable of making one of the best officers for that position our country has ever known. However, it was right that it should be so; it would have been very unwise to have established such a precedent.

In some respects, Mr. Stewart was a very liberal man, although it has been stated otherwise. In his will is his desire to do good especially manifested. Arrangements were made for the building of a church and parsonage, and a school for the benefit of poor boys who desired to fit themselves for a professional life.

Some people may be fortunate in one instance in their life. We do not wholly disregard the idea of circumstances, but we do claim and try to prove that it is not the _one instance_ in the life after all. When we consider a whole life's history, we are convinced every time that generally where one is seemingly very fortunate, it is the result of careful calculation and down-right hard work. Bad luck is the natural result of carelessness in business matters. Had A. T. Stewart waited for a lucky chance to come to him, he might--probably never would have realized that splendid success that did attend his efforts. Here he came to this country at the age of sixteen. He did not wait for his grandfather to die and leave him that legacy but went right at some work. It may be possible that the grandfather gave him that money because he felt that young Stewart would make good use of it. Certain it is he did not wait but went right to work, saved his money, and was well prepared to use the legacy skillfully when he did receive it. However, if Stewart had never had that money given him, he would have succeeded. His whole life was a series of maturing plans, which had been carefully laid, and then pushed to completion. A man must have ability to plan well, and the courage and backbone to push those plans to success. A. T. Stewart possessed these qualities to a marked degree. He began as his moderate circumstances would warrant, and best of all he never allowed his energies to slacken. He never became a lazy business man. He never allowed himself to rest content with the laurels already his. He was a man of enterprise; while competitors followed the footsteps of their fathers, A. T. Stewart was progressing--he was original in nearly every undertaking.

On the 10th day of April, 1876, this great magnate died. His business was carried on, for a time, by others, but the mainspring was gone, and in 1882 the great clock stopped. Here is an instance that should convince us of the result of courage, energy, and self-reliance. A. T. Stewart began without a dollar, and succeeded, while they who had the benefit of his experience, the use of his vast wealth, and a marble palace, could not succeed.

The history of the stealing of Mr. Stewart's body is well-known, and as the papers have succeeded so well in keeping the subject before the people, we will not speak further of that here, our object being rather to instruct than to narrate sensational episodes.

NICHOLAS LONGWORTH.

In the year 1782 there was born a child of parents who had once been somewhat wealthy, but who were then living in poverty at Newark, New Jersey. This child was Nicholas Longworth, the father of grape culture in the United States.

He attempted to learn various trades, at one time being bound to a shoemaker, but finally settled upon the law and began its study, as his circumstances would allow, in his native city. Young Longworth saw that he would have far more chance to rise in the new country west of the Alleghanies than in the over-crowded East. Therefore, when he was of age he emigrated "out west," stopping at the outskirts of civilization, locating in a small place of 1000 inhabitants called Cincinnati. Here he entered the law office of Judge Burnett, and soon was capable of passing the necessary examination, and was admitted to the bar. His first case was in defense of a certain man who had been arrested for horse-stealing, a very grave offense in that wilderness. This man had no money and about all he possessed in the world that he could call his own was two copper stills. As much as young Longworth needed money he was obliged to accept these as his fee for clearing the man. He tried to turn the stills into money but finally traded them for thirty-three acres of land, which was a barren waste. He had kept his eyes open and felt sure that the possibilities for Cincinnati were very great. He therefore bought land at ten dollars per lot, as fast as his means would allow, and all through the early portion of his life bought real estate until he became recognized as the heaviest real estate owner in Cincinnati.

Years afterward he saw the wisdom of his course,--living to see his ten dollar lots rise to ten thousand dollars each, and the land which he received as his first fee, that was thought to be all but worthless, rise to the value of two million dollars. After following the law for about twenty years he was forced to give up his practice in order to take care of his extensive land interest. He went into the grape growing business, and for some time his efforts were attended with only discouragement, but he had relied on the clippings from foreign vines. He firmly believed that the Ohio valley was naturally adapted to the growth of the grape, and in this enterprise he allowed himself to harbor no thoughts other than of success.

This is a characteristic of any man calculated to succeed. After experimenting with many different varieties, he at last hit upon the Catawba. To encourage the industry he laid out a very large vineyard, gave away great numbers of cuttings, offered a prize for any improvement in the Catawba grape, and proclaimed that he would buy all the wine that could be brought to him from the valley, whether in large or small quantities. The result was that grape growing figured as no small factor in the development of Ohio. He had a wine cellar capable of holding 300,000 bottles, and was worth at his death $15,000,000.

Nicholas Longworth was exceedingly liberal in his own way--selling his lots on easy installments, thereby aiding many to a home. His motto was, "Help those who help themselves," however, he gave much to those whom no one else would aid. He was personally of inferior appearance; not only this, but nothing pleased him more than a shabby dress, being often mistaken for a beggar. As a benefactor and horticulturist he made his influence to be felt in succeeding generations.

ROBERT BONNER.

Of all the newspaper editors we have ever read, possibly Robert Bonner is the most enterprising. He was born in Ireland in the year 1824, and at the age of sixteen came to Hartford, Connecticut. He had an uncle here who was a farmer, but Robert aspired to own a paper, and drifted into the office of the _Hartford Courant_. Robert Bonner determined to own a paper; he, therefore, set about it, working faithfully every day, and overtime, saving his money. He mastered his business, becoming an expert compositor. In 1844 he went to New York and obtained employment on the _Mirror_. He was intrusted with the oversight of the advertising department, and it was soon seen that he had a decidedly fine taste in the arrangement of this line, a feature which has undoubtedly had much to do with his wonderful success later. He was also at this time a correspondent of the _Hartford Courant_, also newspapers in Boston, Albany and Worcester. About 1851 he bought out the _Merchants Ledger_, a paper devoted to the commercial interests of the country. This he transformed into a family story paper, and christened it the _New York Ledger_. Fanny Fern was just appearing in the columns of literature. Bonner offered her $1,000 to write a story for the _Ledger_, enclosing his check for the amount. As this was a very high price in those days, of course she accepted. Then the papers throughout the country were full of advertisements--"Read the Thousand Dollar Story in the _Ledger_." "Read The _New York Ledger_"--Some people said, "Well, first-class journals don't use such flashy ways of inducing people to subscribe; they rely on the merits of their paper." Bonner heard this and began to study how to overcome this tide of sentiment. There was _Harpers Weekly_--no one questioned its respectability. The Harpers never indulged in any flashy advertising, but soon the people were surprised to see in all the leading papers, 'Buy _Harpers Weekly_,' as no one imagined that Bonner had paid for the advertising; they attributed the advertisements to the necessity Harpers felt through the rivalry of the _Ledger_. This sort of enterprise cost, but it convinced people that respectable journals advertised as did the _Ledger_. People said it was 'cheap, trashy literature, etc.'

Mr. Bonner at once hunted up Edward Everett who was recognized as the representative of New England refinement. This was a most opportune time for Mr. Bonner, as Mr. Everett was trying to raise a large sum with which to aid in beautifying the home and tomb of Washington. Mr. Bonner engaged Mr. Everett to write a series of articles on Mount Vernon, giving in return his check for $10,000 to be applied toward the Everett Fund for the aid of the Association. Probably Mr. Everett would have refused to write at any other time, but Bonner took advantage of circumstances--ALWAYS.

He next secured George Bancroft, the eminent historian. Then followed Horace Greely, James Gordon Bennett, and Henry J. Raymond. When such lights of journalism would write for the _Ledger_, what could lesser country editors say? Next came a story by Henry Ward Beecher, who was followed by Dr. John Hall the great Presbyterian Divine, Bishop Clark, Dr. English, Longfellow, Tennyson, and others, including a series of articles from the presidents of the leading colleges throughout the country.