Review of “American Rascal,” A Biography of Jay Gould by Greg Steinmetz
Who was Jay Gould? This is a question I hope to answer of the character in question, as portrayed by Greg Steinmetz. One of the lesser-known, but most notorious and enigmatic Robber Baron, Jay Gould was a harbinger of contradictions. Once lauded by Cornelius Vanderbilt as the “smartest man in America”, Rockefeller buttressed this point as he believed Jay Gould had the best head for business amongst their retinue.
A mathematician by nature and a romantic at heart, Gould began his career as a surveyor, immersing himself in work to health-crippling levels. This streak of hard work and singlemindedness reverberated in his words to a friend: “As regards the future world, except what the Bible reveals, I am unable to fathom its mysteries, but, as to the present, I am determined to use all my best energies to accomplish this life’s highest possibilities.” Thus, it comes as no surprise the laurels which Gould achieved in his lifetime. At age sixteen, he managed to convince Zadock Pratt, an accomplished tanner and politician to partner with him in constructing a tannery which would eventually be named Gouldsboro. We see here, for the first time, the cunning and ruthless streak characteristic of Gould, when another associate’s partner — David Lee — attempted to seize Gouldsboro by force. Assembling fifty men, he wrested back control of the tannery with such Napoleonic vim that the “Battle of Gouldsboro” remains etched in infamy.
Selling his investments in the tannery — a sour taste forever left in his mouth — Gould moved to New York where the rest of his career was to be characterized by instances of insider trading, shorting, and betrayal. In the Big Apple, Gould set himself up as a stockbroker and private investor, with a reputation for diligence and a keen eye for details. These were new beginnings for the aspiring upstart, with his marriage to Helen (Ellie) Miller and his first railroad purchase — bonds of Rutland & Washington. Gould’s penchant for profits was evident with this transaction, as a $5,000 purchase of convertible bonds in the railroad yielded a profit of $100,000; a tidy sum even in today’s terms. As with other magnates and leaders since time immemorial, Gould believed he was predestined for success by divine will. Writing to his former teacher, he said;
“Now the pieces fit, and this thing ambition is no longer blind but divine, a true and noble and necessary path.”
The events that followed were nothing short of divine. To put it concisely, Jay Gould and his associates managed to swindle America’s then-richest man, Cornelius Vanderbilt, out of $7 million. Thus began the Erie War; an unending tug of war of bribery and widespread graft.¹ He eventually took control of the Erie railroad alongside his beloved associate, Jim Fisk; a pseudo-Bonnie-and-Clyde partnership. Both were notorious for stock speculation, racketeering, market manipulation, and avarice.
By now, Gould had earned a reputation that preceded him. But he was also a rich man. And with his new-found wealth, he attempted what every well-meaning magnate dreams of, consolidation. “Consolidation will prove both essential and inevitable,” his words to an associate. Drawing inspiration from his colleague, Rockefeller, he moved to seize control of Western Union; then one of the largest companies in America. He began by creating a new venture, American Union, to rival the Western Union behemoth both in name and size. He then took the concern public which tanked Western Union’s stock price. He subsequently bought a majority stake in Western stock on the open market, thereby making him the largest shareholder. I believe this is where we see the major difference between Gould and the other Robber Barons — Gould was a profiteer at heart. Faced with the options of consolidation or a quick profit, he chose the latter. He cashed out with a $2 million profit from the purchase of American Union by Western Union.
Gould was also embroiled in other controversies such as a gold shorting attempt that implicated the then-President of the United States, Ulysses S. Grant, and a strike mired in infamy. Suffering from frail health and a workaholic lifestyle, Gould put his affairs in order, transferred his millions into a creditor-protected trust for his children, and left a word of advice: “Live off the interest and don’t touch the principal.” The “Great Mogul” — according to George Vanderbilt — died at 9:15 AM on the 2nd of December, 1892.
To opine on who Jay Gould was, and his legacy to date, I would categorize him more as an anti-hero than an outright villain. He was an expert at his craft, adept at human nature, understood the power of information, and was a dedicated family man. It must also be taken into account that at the time, there were few or no regulators; bribery, corruption, and all forms of graft were the order of the day. It was the Wild West, and Gould was its Sheriff. As a result, he became a catalyst for the institution of governmental regulators. An excerpt from the book puts this succinctly:
“That’s the thing about Gould. He lied. He cheated. He stole. But he was so good at what he did, so intelligent in the execution, and such a ‘clean, kind, and industrious’ family man that, try as you might, you can’t hate him properly.”
And that is the legacy of Jay Gould.
¹: Bribery was commonplace in Gould’s era.