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00:00:01,378 --> 00:00:04,546
Narrator: IN 1868,
AMERICA'S FIRST TITAN...
2
00:00:04,648 --> 00:00:06,648
WE CAN'T STOP NOW.
WE GOT TO KEEP BUYING.
3
00:00:06,750 --> 00:00:08,717
Narrator:
...CORNELIUS VANDERBILT
4
00:00:08,819 --> 00:00:11,319
AND MAVERICK STOCKBROKER
DANIEL DREW...
5
00:00:11,422 --> 00:00:12,387
THE ERIE'S UP.
6
00:00:12,489 --> 00:00:14,456
Narrator:
...WAGE WAR ON WALL STREET...
7
00:00:14,558 --> 00:00:16,458
Gordon: IT WAS WALL STREET'S
WILD WEST DAYS.
8
00:00:16,560 --> 00:00:18,493
IT WAS SHOOTOUT
AT THE O.K. CORRAL.
9
00:00:18,595 --> 00:00:20,529
Narrator:
...BATTLING FOR CONTROL
10
00:00:20,631 --> 00:00:23,098
OF ONE OF AMERICA'S
MOST POWERFUL RAILROADS.
11
00:00:23,200 --> 00:00:25,667
HE WANTS THE ERIE,
WE'LL GIVE HIM THE ERIE.
12
00:00:25,769 --> 00:00:28,370
Narrator: IT'S AN ENORMOUS
FINANCIAL SCANDAL...
13
00:00:28,472 --> 00:00:29,704
TO THE STREETS!
14
00:00:29,807 --> 00:00:32,474
...THAT ROCKS AMERICAN
CAPITALISM TO ITS CORE,
15
00:00:32,576 --> 00:00:35,844
AND THE EFFECTS ARE
STILL BEING FELT TODAY.
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00:00:35,946 --> 00:00:38,013
BUY IT ALL!
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Narrator:
THESE ARE THE EPIC STORIES
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OF MEN STRUGGLING FOR SUPREMACY,
BUILDING EMPIRES,
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00:00:46,824 --> 00:00:51,893
AND CHANGING THE COURSE
OF AMERICAN HISTORY FOREVER.
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-- Captions by VITAC --
www.vitac.com
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CAPTIONS PAID FOR BY
DISCOVERY COMMUNICATIONS
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¶¶
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[ CRICKETS CHIRPING ]
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RUN, MAN!
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[ WHISTLE BLOWS ]
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IT'S ONE OF THE MOST INFAMOUS
CON JOBS IN AMERICAN HISTORY...
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[ GRUNTS ]
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DRIVER,
TAKE US TO THE DOCKS.
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ALL SPEED,
DON'T SPARE THE HORSES.
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...THE END GAME
OF AN INTENSE STRUGGLE
31
00:01:22,860 --> 00:01:25,961
BETWEEN AMERICA'S RICHEST MAN,
CORNELIUS VANDERBILT...
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WE SUNK THE COMMODORE.
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...AND A GANG OF CRAFTY
WALL STREET TRADERS.
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[ LAUGHS ]
35
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IT'S A RUTHLESS STING,
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WHICH NETS OVER $100 MILLION
IN TODAY'S MONEY
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AND CONTROL OVER ONE
OF AMERICA'S LARGEST RAILROADS.
38
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BETTER GET THIS
TO THE COMMODORE.
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NO ONE HAD REALLY DONE ANYTHING
QUITE ON THIS SCALE BEFORE.
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Narrator:
SO JUST HOW DID VANDERBILT
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00:01:47,784 --> 00:01:50,785
BECOME THE TARGET
OF A GANG OF STOCK TRADERS?
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[ TRAIN WHISTLES BLOW ]
43
00:01:59,296 --> 00:02:01,329
IN POST-CIVIL-WAR AMERICA,
44
00:02:01,431 --> 00:02:05,467
CORNELIUS VANDERBILT IS THE
DOMINANT BUSINESSMAN OF HIS DAY.
45
00:02:05,569 --> 00:02:07,736
HE WAS AS FAMOUS
AS ANYBODY IN NEW YORK CITY.
46
00:02:07,838 --> 00:02:10,038
HE WAS AS FAMOUS
AS ANYBODY IN THE COUNTRY.
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HE WAS KNOWN TO BE PROBABLY
THE RICHEST MAN IN THE COUNTRY
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00:02:16,380 --> 00:02:18,180
AT THE TIME.
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VANDERBILT WAS A MAN
WHO WAS VERY FULL OF HIMSELF.
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00:02:22,519 --> 00:02:24,886
HE WAS SOMEONE WHO INSISTED
ON HAVING HIS OWN WAY.
51
00:02:26,290 --> 00:02:27,889
Gordon:
VERY RECOGNIZABLE.
52
00:02:29,092 --> 00:02:30,592
HE COULDN'T WALK DOWN THE STREET
53
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WITHOUT PEOPLE SAYING,
"HELLO, COMMODORE."
54
00:02:33,197 --> 00:02:35,297
Narrator:
BY HIS MID-60s,
55
00:02:35,399 --> 00:02:39,367
VANDERBILT STANDS AT THE HELM
OF A MASSIVE SHIPPING EMPIRE.
56
00:02:39,469 --> 00:02:43,138
Gordon: VANDERBILT STARTED OUT
IN BUSINESS WITH SAILBOATS.
57
00:02:43,240 --> 00:02:44,706
AND THEN IN THE 1820s,
58
00:02:44,808 --> 00:02:47,742
HE REALIZED THAT STEAM
WAS THE COMING THING.
59
00:02:47,844 --> 00:02:49,244
AND BY THE 1850s,
60
00:02:49,346 --> 00:02:52,113
HE WAS THE LARGEST STEAMBOAT
OWNER IN THE COUNTRY.
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00:02:53,217 --> 00:02:57,319
Narrator: THIS IS HOW HE GETS
HIS NICKNAME, THE COMMODORE.
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00:03:01,525 --> 00:03:04,659
ONE OF VANDERBILT'S
LONG-TERM COMPETITORS
63
00:03:04,761 --> 00:03:07,596
IS A MAN NAMED DANIEL DREW.
64
00:03:07,698 --> 00:03:10,065
Gordon: DANIEL DREW
WAS ALSO A SHIPOWNER.
65
00:03:10,167 --> 00:03:11,566
HE WAS VERY RELIGIOUS.
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00:03:11,668 --> 00:03:13,068
HE ENDOWED A SEMINARY.
67
00:03:13,170 --> 00:03:14,336
HE BUILT CHURCHES.
68
00:03:14,438 --> 00:03:16,538
HE EVEN PREACHED THE GOSPEL
NOW AND THEN.
69
00:03:16,640 --> 00:03:19,507
BUT SOMEHOW HE WAS ABLE
TO COMPARTMENTALIZE
70
00:03:19,610 --> 00:03:22,644
HIS BUSINESS AFFAIRS
AND HIS RELIGIOUS AFFAIRS.
71
00:03:22,746 --> 00:03:24,379
SO HE WOULD GO DOWN
TO WALL STREET,
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00:03:24,481 --> 00:03:26,715
AND IF HE COULD CHEAT YOU,
HE WOULD CHEAT YOU.
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Narrator: DANIEL DREW
GREW UP IN THE CIRCUS.
74
00:03:30,721 --> 00:03:33,822
HE LEARNED THESE SORT OF
CIRCUS TACTICS OF MISDIRECTION
75
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AND GETTING PEOPLE'S ATTENTION
76
00:03:35,659 --> 00:03:38,760
AND PERSUADING THEM TO DO
SOMETHING THEY SHOULDN'T DO.
77
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HEADS OR TAILS.
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00:03:43,500 --> 00:03:45,233
HEADS, SIR.
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Gordon:
DANIEL DREW WAS VERY SLY.
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OH.
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YOU LOSE.
82
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NOBODY WOULD TRUST HIM
83
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AS FAR AS THEY COULD THROW
AN ANVIL IN A SWAMP.
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Narrator:
IN THE MID-1800s,
85
00:03:59,916 --> 00:04:03,652
AMERICA'S MOST POWERFUL
COMPANIES, RAILROADS,
86
00:04:03,754 --> 00:04:05,720
ARE BEING TRADED ON THE EMERGING
87
00:04:05,822 --> 00:04:08,657
AND LARGELY UNREGULATED
STOCK MARKET.
88
00:04:09,726 --> 00:04:13,528
ONE OF THE LARGEST OF THEM ALL
IS THE ERIE RAILROAD.
89
00:04:13,630 --> 00:04:16,531
BUT THE ERIE IS IN TROUBLE.
90
00:04:16,633 --> 00:04:18,767
Gordon:
THIS REMARKABLE RAILROAD
91
00:04:18,869 --> 00:04:20,869
WENT THROUGH BANKRUPTCY
SIX OR SEVEN TIMES.
92
00:04:23,607 --> 00:04:25,473
Narrator: IN 1854,
93
00:04:25,575 --> 00:04:29,811
DANIEL DREW IS ELECTED TREASURER
OF THE FAILING ERIE.
94
00:04:29,913 --> 00:04:32,781
Nelson: WHEN DREW BECAME
TREASURER OF THE ERIE,
95
00:04:32,883 --> 00:04:34,849
THERE WAS
A SERIOUS CASH PROBLEM.
96
00:04:34,951 --> 00:04:37,752
THERE WAS NO ONE TO TURN TO
EXCEPT CORNELIUS VANDERBILT.
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Narrator: DREW KNOWS VANDERBILT
FROM THEIR EARLIER DAYS
98
00:04:42,125 --> 00:04:44,859
AS COMPETITORS
IN THE SHIPPING INDUSTRY,
99
00:04:44,961 --> 00:04:48,163
AND HE KNOWS VANDERBILT
HAS THE KIND OF CASH NEEDED
100
00:04:48,265 --> 00:04:50,765
TO KEEP THE ERIE AFLOAT.
101
00:04:50,901 --> 00:04:53,635
SO, WHAT'S
IT GONNA COST ME?
102
00:04:53,737 --> 00:04:56,871
I HAVE $200,000.
103
00:04:57,874 --> 00:05:00,875
WE NEED ANOTHER $400,000.
104
00:05:00,977 --> 00:05:02,744
HM.
105
00:05:02,846 --> 00:05:05,880
JUST LIKE INVESTING IN
ANY NEW INDUSTRY OR TECHNOLOGY,
106
00:05:05,982 --> 00:05:09,417
INVESTING IN RAILROADS
BACK IN THE 1800s WAS VERY RISKY
107
00:05:09,519 --> 00:05:12,554
BECAUSE THE BROKERS COULD VERY
EASILY GIVE ANY INFORMATION
108
00:05:12,656 --> 00:05:15,990
TO ANY INVESTOR AND SAY,
"THIS IS GONNA BE A GREAT DEAL."
109
00:05:16,093 --> 00:05:18,693
VERY WELL.
110
00:05:18,795 --> 00:05:22,997
BUT I WANT A MORTGAGE
ON ALL THE ROLLING STOCK.
111
00:05:23,100 --> 00:05:25,600
Narrator: VANDERBILT
UNDERSTANDS THE RISKS.
112
00:05:25,702 --> 00:05:28,169
STILL, HE AGREES
TO BAIL THE ERIE OUT
113
00:05:28,271 --> 00:05:30,205
WITH ONE CONDITION --
114
00:05:30,307 --> 00:05:32,307
HE WILL BE PAID BACK QUICKLY,
115
00:05:32,409 --> 00:05:35,744
OR HE WILL TAKE POSSESSION
OF THE ERIE'S TRAINS.
116
00:05:35,846 --> 00:05:39,147
WITH THE RAILROAD SAFE
FROM BANKRUPTCY,
117
00:05:39,249 --> 00:05:41,783
DANIEL DREW TAKES FULL ADVANTAGE
OF THE ERIE
118
00:05:41,885 --> 00:05:44,386
ON THE NEW YORK STOCK EXCHANGE.
119
00:05:44,488 --> 00:05:48,289
DANIEL DREW WAS A SPECTACULAR
STOCK MANIPULATOR.
120
00:05:48,392 --> 00:05:50,658
Gordon:
HE USED THE INSIDE INFORMATION
121
00:05:50,761 --> 00:05:52,894
AND MANIPULATED
THE ERIE SECURITIES
122
00:05:52,996 --> 00:05:55,096
SO THAT HE COULD PUSH
THE PRICE UP,
123
00:05:55,198 --> 00:05:57,232
OR HE COULD PUSH THE PRICE DOWN.
124
00:05:59,236 --> 00:06:03,905
Narrator:
DREW SPREADS NEGATIVE RUMORS
TO PUSH THE STOCK PRICE DOWN,
125
00:06:04,007 --> 00:06:07,542
BUYING SHARES FOR HIMSELF
AT A LOW PRICE.
126
00:06:07,644 --> 00:06:10,044
AND THEN HE WOULD DRIVE
THE STOCK PRICE UP AGAIN
127
00:06:10,147 --> 00:06:12,781
AND SELL HIS SHARES AT A PROFIT.
128
00:06:12,883 --> 00:06:14,916
A LICENSE TO STEAL.
129
00:06:15,018 --> 00:06:17,018
AND OF COURSE,
THAT'S EXACTLY WHAT HE DID.
130
00:06:17,120 --> 00:06:19,020
[ INDISTINCT SHOUTING ]
131
00:06:19,122 --> 00:06:21,122
Narrator:
THE ERIE EARNS A NICKNAME --
132
00:06:21,224 --> 00:06:24,259
THE SCARLET WOMAN
OF WALL STREET.
133
00:06:24,361 --> 00:06:27,762
Gordon: THE ERIE RAILWAY,
OR RATHER, ITS DIRECTORS,
134
00:06:27,864 --> 00:06:31,766
ESPECIALLY DANIEL DREW, BEHAVED
LIKE A WOMAN OF LOW REPUTE.
135
00:06:31,868 --> 00:06:33,835
I MEAN, THEY BEHAVED
LIKE A PROSTITUTE
136
00:06:33,937 --> 00:06:36,905
AND BROKE THE HEARTS
OF SO MANY INVESTORS.
137
00:06:37,007 --> 00:06:40,575
IT WAS BADLY RUN.
IT WAS BADLY MAINTAINED.
138
00:06:40,677 --> 00:06:43,378
THEY NEVER HAD ANY MONEY
BECAUSE THE MONEY WAS BEING USED
139
00:06:43,480 --> 00:06:45,547
FOR THE PURPOSES
OF THE BOARD OF DIRECTORS
140
00:06:45,649 --> 00:06:48,082
RATHER THAN FOR THE PURPOSES
OF THE STOCKHOLDERS.
141
00:06:48,185 --> 00:06:52,887
¶¶
142
00:06:52,989 --> 00:06:55,824
Narrator: EVEN THOUGH THE ERIE
IS BADLY RUN
143
00:06:55,926 --> 00:06:59,127
AND SEEMS LIKE A VOLATILE
AND RISKY INVESTMENT,
144
00:06:59,229 --> 00:07:01,796
VANDERBILT SEES RAIL
AS THE FUTURE.
145
00:07:01,898 --> 00:07:05,400
Ackerman: HE RECOGNIZED
THE POTENTIAL OF THE IRON LOAD.
146
00:07:05,502 --> 00:07:08,636
AND HE ESSENTIALLY
SOLD OFF HIS STEAMBOATS
147
00:07:08,738 --> 00:07:11,906
AND PUT HIS MONEY, WHICH WAS
CONSIDERABLE, INTO RAILROADS.
148
00:07:14,678 --> 00:07:15,877
[ TRAIN WHISTLE BLOWS ]
149
00:07:15,979 --> 00:07:17,378
Narrator:
VANDERBILT'S TIMING
150
00:07:17,481 --> 00:07:20,014
TO INVEST
IN RAIL COULDN'T BE BETTER.
151
00:07:20,116 --> 00:07:22,016
Nelson:
AT THE BEGINNING OF THE 1860s,
152
00:07:22,118 --> 00:07:25,186
THE MISSISSIPPI RIVER IS
THE KEY CONDUIT FOR AMERICANS.
153
00:07:25,288 --> 00:07:28,423
ONCE THE CIVIL WAR STARTS,
THE MISSISSIPPI RIVER IS CLOSED.
154
00:07:28,525 --> 00:07:30,725
AND SO RAILROADS
BECOME THE KEY SOURCE
155
00:07:30,827 --> 00:07:32,393
BY WHICH GOODS ARE GONNA FLOW
156
00:07:32,496 --> 00:07:35,063
FROM THE MIDWEST
OUT TO THE ATLANTIC OCEAN.
157
00:07:36,166 --> 00:07:37,899
Narrator:
BY THE END OF THE WAR,
158
00:07:38,001 --> 00:07:39,968
VANDERBILT OWNS
A CONTROLLING INTEREST
159
00:07:40,070 --> 00:07:41,769
IN A GROWING RAIL EMPIRE.
160
00:07:41,872 --> 00:07:44,806
BUT HE WANTS ACCESS
TO THE NEW FRONTIER,
161
00:07:44,908 --> 00:07:48,977
AND HE SEES THE ERIE RAILROAD
AS THE KEY TO GETTING HIM THERE.
162
00:07:49,079 --> 00:07:52,247
Nelson: YOU HAVE A RAILROAD THAT
GOES TO DEEPWATER ON THE EAST
163
00:07:52,349 --> 00:07:54,949
AND ALL THE WAY TO CHICAGO
IN THE WEST.
164
00:07:55,051 --> 00:07:57,452
THE ERIE TURNS OUT TO BE
THE PERFECT THOROUGHFARE
165
00:07:57,554 --> 00:07:59,087
FOR THE UNITED STATES.
166
00:07:59,189 --> 00:08:04,125
Narrator: VANDERBILT SETS HIS
SIGHTS ON OWNERSHIP OF THE ERIE.
167
00:08:05,462 --> 00:08:08,897
Gordon: THE ERIE RAILWAY HAD
SUCH ECONOMIC POTENTIAL,
168
00:08:08,999 --> 00:08:10,198
IT SHOULD HAVE BEEN
169
00:08:10,300 --> 00:08:12,367
AN ENORMOUSLY SUCCESSFUL
ENTERPRISE.
170
00:08:12,469 --> 00:08:15,303
Narrator:
VANDERBILT COMES UP WITH A PLAN
171
00:08:15,405 --> 00:08:17,872
THAT WILL MAKE
ALL THE RAILROADS MONEY.
172
00:08:20,911 --> 00:08:23,578
IT'S A LONG SHOT,
BUT WORTH TAKING.
173
00:08:23,680 --> 00:08:26,848
HE MEETS WITH HIS TRUSTED
ADVISER, FRANK WORK,
174
00:08:26,950 --> 00:08:31,119
A BOARD MEMBER OF THE ERIE,
AND PROPOSES A RAIL CARTEL --
175
00:08:31,221 --> 00:08:34,055
AN AGREEMENT BETWEEN
THE COMPETING RAILROADS
176
00:08:34,157 --> 00:08:35,990
TO CONTROL PRICES.
177
00:08:36,126 --> 00:08:38,259
SOME OF THE TRAFFIC
WILL GO ALONG THE CENTRAL,
178
00:08:38,361 --> 00:08:39,961
SOME OF THE TRAFFIC
WILL GO ALONG THE ERIE,
179
00:08:40,063 --> 00:08:41,663
SOME OF THE TRAFFIC
WILL GO ALONG THE PENN,
180
00:08:41,765 --> 00:08:44,899
AND THEY WILL DIVIDE THE PROFITS
AMONG THE THREE OF THEM.
181
00:08:45,001 --> 00:08:46,634
Narrator:
WITH WORK ON BOARD,
182
00:08:46,736 --> 00:08:49,537
THEY ALSO PITCH THE IDEA
TO DREW.
183
00:08:49,639 --> 00:08:51,806
THE ERIE
SHOULD MAKE MONEY.
184
00:08:53,109 --> 00:08:55,677
ARE YOU PROPOSING
AN EVEN SPLIT
185
00:08:55,779 --> 00:08:58,146
BETWEEN
ALL THREE RAILROADS?
186
00:09:00,617 --> 00:09:03,017
MAKES SENSE TO ME.
DANIEL?
187
00:09:03,119 --> 00:09:05,887
Narrator: VANDERBILT BELIEVES
WORK AND DREW
188
00:09:05,989 --> 00:09:08,656
WILL SECURE THE VOTE
WITH THE ERIE BOARD.
189
00:09:08,758 --> 00:09:11,159
Gordon: WORK AND DANIEL DREW
WERE MEMBERS OF THE BOARD.
190
00:09:11,261 --> 00:09:13,261
THEY EACH HAD ONE VOTE.
191
00:09:13,363 --> 00:09:14,629
AGREED.
192
00:09:14,731 --> 00:09:16,297
WE HAVE A DEAL.
193
00:09:20,837 --> 00:09:23,538
Narrator: BEFORE THE VOTE
ON THE CARTEL PLAN,
194
00:09:23,640 --> 00:09:26,040
DREW BRINGS ON
TWO NEW BOARD MEMBERS --
195
00:09:26,142 --> 00:09:28,643
JAY GOULD AND JIM FISK.
196
00:09:28,745 --> 00:09:30,311
Nelson:
DREW NEEDS A COUPLE OF WHAT,
197
00:09:30,413 --> 00:09:32,213
IN THE STOCK MARKET,
WERE CALLED "DUMMIES."
198
00:09:32,315 --> 00:09:33,481
THEY LOOKED LIKE REAL PEOPLE,
199
00:09:33,550 --> 00:09:35,483
BUT THEY ACTUALLY DID EVERYTHING
THAT YOU SAID.
200
00:09:35,585 --> 00:09:38,853
GENTLEMEN,
LET'S COME TO ORDER.
201
00:09:38,955 --> 00:09:42,190
Narrator: DREW PRESENTS
VANDERBILT'S CARTEL PLAN.
202
00:09:42,292 --> 00:09:46,160
THE PROPOSAL
IS TO CONSOLIDATE THE ERIE
203
00:09:46,262 --> 00:09:50,732
WITH THE CENTRAL
AND THE PENN,
204
00:09:50,834 --> 00:09:52,834
WITH AN EVEN SPLIT
OF THE PROFITS.
205
00:09:57,040 --> 00:10:00,508
ALL THOSE IN FAVOR,
SAY "AYE."
206
00:10:00,610 --> 00:10:02,910
-AYE.
-[ LAUGHS ]
207
00:10:03,013 --> 00:10:05,279
Gordon:
DREW NEEDED VOTES ON THE BOARD,
208
00:10:05,382 --> 00:10:07,482
AND SO HE WANTED TO GET GUYS
WHO WOULD GO ALONG WITH HIM.
209
00:10:07,584 --> 00:10:12,053
ALL THOSE AGAINST...
SAY "NAY."
210
00:10:12,155 --> 00:10:14,822
Gordon:
DREW WAS LIKE A SCORPION.
211
00:10:14,924 --> 00:10:17,225
HE COULDN'T HELP STING.
IT WAS IN HIS NATURE.
212
00:10:17,327 --> 00:10:19,027
All: NAY.
213
00:10:19,129 --> 00:10:22,030
DREW DOUBLE-CROSSES VANDERBILT,
AS HE ALWAYS DOES.
214
00:10:23,199 --> 00:10:24,499
[ GLASS BANGS ON TABLE ]
215
00:10:24,601 --> 00:10:26,734
Narrator:
WITHOUT A CARTEL DEAL,
216
00:10:26,836 --> 00:10:30,104
DREW WILL CONTROL THE ERIE,
RAIL RATES, AND THE WEST.
217
00:10:30,206 --> 00:10:31,673
THE NAYS HAVE IT.
218
00:10:31,775 --> 00:10:33,274
-TO THE NAYS.
-TO THE NAYS.
219
00:10:33,376 --> 00:10:34,542
CHEERS.
220
00:10:34,644 --> 00:10:37,278
AND HE AND HIS BOARD
BOTH RECOGNIZE THIS
221
00:10:37,380 --> 00:10:40,782
AS A BIG CASH COW THAT
THEY DID NOT WANT TO GIVE UP.
222
00:10:42,919 --> 00:10:44,352
Vanderbilt:
THAT DAMN DREW!
223
00:10:44,454 --> 00:10:47,355
IT BECAME CLEAR TO VANDERBILT
THAT DREW COULD NOT BE TRUSTED.
224
00:10:47,457 --> 00:10:51,159
BUY EVERY LAST BIT OF ERIE STOCK
YOU CAN GET YOUR HANDS ON.
225
00:10:51,294 --> 00:10:53,361
VANDERBILT DECIDED
THAT HE WAS GONNA USE
226
00:10:53,463 --> 00:10:55,997
HIS MOST POWERFUL WEAPON,
HIS ENORMOUS WEALTH,
227
00:10:56,099 --> 00:10:58,766
AND BUY CONTROL
OF THE ERIE RAILWAY
228
00:10:58,868 --> 00:11:01,169
SO THAT HE COULD THROW DREW
OFF THE BOARD
229
00:11:01,271 --> 00:11:03,504
AND RUN IT HIMSELF
IN AN HONEST MANNER.
230
00:11:04,774 --> 00:11:06,374
Narrator:
VANDERBILT AND DREW
231
00:11:06,476 --> 00:11:08,943
ARE IN A DESPERATE STRUGGLE
FOR CONTROL,
232
00:11:09,045 --> 00:11:11,212
WHERE THE WINNER TAKES ALL.
233
00:11:11,314 --> 00:11:13,881
BUY IT ALL!
234
00:11:21,424 --> 00:11:23,858
[ TRAIN BELL RINGING ]
235
00:11:23,960 --> 00:11:26,027
Narrator:
IN POST-CIVIL-WAR AMERICA,
236
00:11:26,129 --> 00:11:28,429
RAILROADS DEFINE THE TIMES.
237
00:11:28,531 --> 00:11:31,265
THEY BECOME HOT INVESTMENTS
ON WALL STREET.
238
00:11:31,367 --> 00:11:33,101
I'VE GOT 20 SHARES OF ERIE.
239
00:11:33,203 --> 00:11:36,370
Narrator: MILLIONS ARE MADE
AND FORTUNES ARE LOST.
240
00:11:36,473 --> 00:11:39,040
Nelson: RAILROAD CORPORATIONS
REQUIRED A STOCK MARKET,
241
00:11:39,142 --> 00:11:41,709
THEY REQUIRED A BOND MARKET,
AN INSANE AMOUNT OF MONEY.
242
00:11:41,811 --> 00:11:45,980
Narrator:
IN 1968, TWO RAIL GIANTS,
243
00:11:46,082 --> 00:11:48,783
CORNELIUS VANDERBILT
AND DANIEL DREW,
244
00:11:48,885 --> 00:11:50,284
ARE ON A COLLISION COURSE
245
00:11:50,386 --> 00:11:53,121
FOR CONTROL ONE OF AMERICA'S
MAIN RAIL LINES --
246
00:11:53,223 --> 00:11:55,156
THE ERIE RAILROAD.
247
00:11:55,258 --> 00:11:59,127
UNLIKE VANDERBILT,
DREW IS NOT A MAN OF HIS WORD.
248
00:11:59,229 --> 00:12:01,662
THAT DAMN DREW!
249
00:12:01,765 --> 00:12:05,166
Ackerman: WHEN VANDERBILT HEARS
THAT THE ERIE RAILROAD BOARD
250
00:12:05,268 --> 00:12:08,736
HAS TURNED DOWN FLATLY
HIS PROPOSAL TO WORK TOGETHER,
251
00:12:08,838 --> 00:12:12,073
HE IS ANGRY, VERY ANGRY.
252
00:12:12,175 --> 00:12:13,808
VANDERBILT-LEVEL ANGRY.
253
00:12:13,910 --> 00:12:16,944
BUY EVERY LAST BIT OF ERIE STOCK
YOU CAN GET YOUR HANDS ON.
254
00:12:17,046 --> 00:12:18,980
WHAT VANDERBILT ATTEMPTED TO DO
WAS ESSENTIALLY
255
00:12:19,082 --> 00:12:21,916
WHAT TODAY WE WOULD
CALL A HOSTILE TAKEOVER,
ONE COMPANY OF ANOTHER.
256
00:12:22,018 --> 00:12:25,586
THERE'S CLOSE TO 250,000 SHARES
OUT THERE.
257
00:12:25,688 --> 00:12:28,790
IF ONE PERSON OWNS THE MAJORITY
OF THE SHARES OF A COMPANY,
258
00:12:28,892 --> 00:12:31,692
THEY HAVE A CONTROLLING INTEREST
OVER THAT COMPANY...
259
00:12:31,795 --> 00:12:34,428
I RECKON IT MIGHT TAKE
$10 MILLION.
260
00:12:34,531 --> 00:12:36,397
...AND THAT'S WHAT VANDERBILT
WAS TRYING TO DO
261
00:12:36,499 --> 00:12:37,398
WITH THE ERIE RAILROAD.
262
00:12:37,500 --> 00:12:39,167
-HUH.
-DON'T WORRY, FRANK.
263
00:12:39,269 --> 00:12:42,336
I AIN'T DOING THIS
WITHOUT SOME INSURANCE.
264
00:12:44,707 --> 00:12:47,008
MM.
265
00:12:49,412 --> 00:12:52,113
Narrator: BY THE 1860s,
NEW YORK CITY
266
00:12:52,215 --> 00:12:56,984
IS THE NATION'S CENTER OF
INDUSTRY, COMMERCE, AND FINANCE.
267
00:12:57,086 --> 00:12:58,920
Nelson: NEW YORK CITY'S
STOCK MARKET WORLD
268
00:12:59,022 --> 00:13:00,388
WAS CONSIDERED A DARK WORLD.
269
00:13:00,490 --> 00:13:04,258
Gordon: BASICALLY THERE WERE
NO RULES ON WALL STREET.
270
00:13:04,360 --> 00:13:08,129
Brokamp: BACK THEN, THEY HAD
A LOT MORE INSIDE INFORMATION,
271
00:13:08,231 --> 00:13:12,366
A LOT MORE OPPORTUNITY TO
MANIPULATE THE PRICES OF THINGS.
272
00:13:12,468 --> 00:13:14,135
[ INDISTINCT SHOUTING ]
273
00:13:14,237 --> 00:13:16,037
Narrator:
AS TREASURER OF THE ERIE,
274
00:13:16,139 --> 00:13:19,874
DANIEL DREW CAN MANIPULATE
THE VALUE OF ERIE'S STOCK.
275
00:13:19,976 --> 00:13:22,577
AS TREASURER,
HE COULD ISSUE BONDS
276
00:13:22,679 --> 00:13:26,814
AND ISSUE CONVERTIBLE BONDS SO
HE COULD TURN THEM INTO STOCK.
277
00:13:27,951 --> 00:13:30,451
THAT GAVE HIM THE ABILITY
TO RAISE AND LOWER
278
00:13:30,553 --> 00:13:32,620
THE FLOATING SUPPLY
OF ERIE'S STOCK
279
00:13:32,722 --> 00:13:34,722
BY 20% ANY TIME HE WANTED TO.
280
00:13:35,959 --> 00:13:37,658
AND THE ERIE'S UP.
281
00:13:37,760 --> 00:13:39,393
IT WAS WALL STREET'S
WILD WEST DAYS.
282
00:13:39,495 --> 00:13:41,095
WHO'S BUYING?
283
00:13:41,197 --> 00:13:42,530
[ INDISTINCT SHOUTING ]
284
00:13:42,632 --> 00:13:44,699
WHO'S SELLING?
285
00:13:44,801 --> 00:13:47,468
IT WAS SHOOTOUT
AT THE O.K. CORRAL.
286
00:13:47,570 --> 00:13:50,271
[ INDISTINCT SHOUTING ]
287
00:13:52,876 --> 00:13:56,077
Narrator: DREW KNOWS VANDERBILT
WILL TRY TO BUY UP THE ERIE.
288
00:13:56,179 --> 00:13:57,945
BUYING ERIE.
WHO'S SELLING? WHO'S SELLING?
289
00:13:58,014 --> 00:14:00,314
Narrator:
HE ENLISTS HIS TWO PROTéGéS,
290
00:14:00,416 --> 00:14:03,117
JIM FISK AND JAY GOULD,
AS PART OF HIS PLAN.
291
00:14:03,219 --> 00:14:06,220
TELL YOUR BROKERS
WE'RE ABOUT TO MAKE A PLAY
292
00:14:06,322 --> 00:14:09,257
FOR ERIE...QUIETLY.
293
00:14:09,359 --> 00:14:12,960
IT'S A CLASSIC DREW PLAY --
INSIDER TRADING.
294
00:14:13,062 --> 00:14:15,329
TODAY, INSIDER TRADING
IS ILLEGAL.
295
00:14:17,033 --> 00:14:18,599
BACK THEN, IT WASN'T.
296
00:14:18,701 --> 00:14:20,935
UNETHICAL, VERY UNPOPULAR, YES.
297
00:14:21,037 --> 00:14:23,537
BUT BACK THEN,
THERE WERE NO LAWS AGAINST IT.
298
00:14:23,640 --> 00:14:25,773
Gordon:
VANDERBILT CERTAINLY KNEW
299
00:14:25,875 --> 00:14:29,510
THAT DREW HAD THE CAPACITY TO
MANIPULATE THE STOCK OF THE ERIE
300
00:14:29,612 --> 00:14:31,746
AND TO MANIPULATE
HOW MUCH THERE WAS.
301
00:14:31,848 --> 00:14:35,816
AND SO HE HAD TO FIGURE OUT
A WAY TO PREVENT THAT.
302
00:14:37,887 --> 00:14:41,322
Narrator: VANDERBILT FEARS DREW
WILL PRINT NEW ERIE STOCK,
303
00:14:41,424 --> 00:14:44,959
MAKING IT MORE DIFFICULT FOR HIM
TO TAKE CONTROL OF THE RAILROAD.
304
00:14:45,061 --> 00:14:46,494
HE CALLS IN A FAVOR.
305
00:14:46,596 --> 00:14:49,730
NOW WRITE A LETTER
TO THE JUDGE.
306
00:14:49,832 --> 00:14:52,466
WE NEED AN INJUNCTION
AGAINST DREW.
307
00:14:52,568 --> 00:14:55,036
VANDERBILT KNOWS THAT HE CAN BUY
WHATEVER HE WANTS...
308
00:14:55,138 --> 00:14:56,904
WE'RE GONNA BUY US
A JUDGE.
309
00:14:57,006 --> 00:14:59,473
...AND WHOEVER HE WANTS,
INCLUDING A JUDGE.
310
00:14:59,575 --> 00:15:02,376
THAT OUGHT TO DO IT
RIGHT THERE.
311
00:15:03,546 --> 00:15:06,314
TAKE THIS
TO JUDGE BARNARD.
312
00:15:06,416 --> 00:15:10,184
Gordon: HE WENT TO JUDGE BARNARD
TO ISSUE INJUNCTIONS
313
00:15:10,286 --> 00:15:12,119
TO PREVENT DREW
FROM CONVERTING STOCK
314
00:15:12,221 --> 00:15:13,854
OR SELLING STOCK
OR BUYING STOCK,
315
00:15:13,957 --> 00:15:16,324
AND BARNARD
DID WHAT HE WAS TOLD.
316
00:15:17,293 --> 00:15:19,493
Narrator:
THE COURT-ISSUED INJUNCTION
317
00:15:19,595 --> 00:15:22,129
PREVENTS DREW
FROM PRINTING NEW ERIE STOCK.
318
00:15:22,231 --> 00:15:25,566
NOW VANDERBILT
IS READY FOR HIS TAKEOVER.
319
00:15:25,668 --> 00:15:28,869
¶¶
320
00:15:33,076 --> 00:15:35,376
VANDERBILT'S INJUNCTION
IS SERVED,
321
00:15:35,478 --> 00:15:37,545
BUT DANIEL DREW
IS A POOR READER,
322
00:15:37,647 --> 00:15:41,649
SO HE TURNS TO HIS PROTéGéS,
JAY GOULD AND JIM FISK,
323
00:15:41,751 --> 00:15:43,317
FOR HELP.
324
00:15:44,821 --> 00:15:45,820
WHAT'S THIS SAY?
325
00:15:45,922 --> 00:15:47,855
DREW WAS SLY AND CLEVER.
326
00:15:52,929 --> 00:15:54,695
AND...?
327
00:15:54,797 --> 00:15:56,897
Gordon:
GOULD WAS DEEPLY INTELLIGENT,
328
00:15:57,000 --> 00:15:58,866
AS WELL AS SLY AND CLEVER.
329
00:16:00,203 --> 00:16:02,036
IT'S AN INJUNCTION
330
00:16:02,138 --> 00:16:04,938
STOPPING YOU FROM CONVERTING
ERIE BONDS INTO STOCKS.
331
00:16:05,008 --> 00:16:07,775
[ LAUGHS ]
332
00:16:07,877 --> 00:16:10,077
YOU HAVE GOT TO HAND IT
TO THE COMMODORE.
333
00:16:10,179 --> 00:16:11,879
[ LAUGHS ]
334
00:16:11,981 --> 00:16:14,048
WHEN GOULD READS THE INJUNCTION,
HE REALIZES
335
00:16:14,150 --> 00:16:17,518
THAT THIS IS HIS CHANCE TO STEP
IN THE SHOES OF DANIEL DREW.
336
00:16:17,620 --> 00:16:20,955
WE'LL BEAT HIM
AT HIS OWN GAME.
337
00:16:21,057 --> 00:16:24,258
GOULD BEGAN TO SLOWLY
BUT SURELY TAKE CONTROL.
338
00:16:24,360 --> 00:16:26,761
HE WAS A MUCH SMARTER MAN
THAN DREW.
339
00:16:28,431 --> 00:16:29,930
WE'LL BUY OUR OWN JUDGE.
340
00:16:30,033 --> 00:16:31,298
BRILLIANT!
341
00:16:31,401 --> 00:16:34,435
TO HELL WITH THE LAW.
[ LAUGHS ]
342
00:16:34,537 --> 00:16:37,538
IN NEW YORK IN THE 1860s,
343
00:16:37,673 --> 00:16:40,441
THE JUDICIARY HAD BECOME
COMPLETELY CORRUPT.
344
00:16:42,211 --> 00:16:44,979
Narrator: GOULD RECOMMENDS
THEY BUY A COUNTER-INJUNCTION
345
00:16:45,081 --> 00:16:47,114
THAT DOES ALLOW THEM
TO ISSUE NEW STOCK.
346
00:16:47,216 --> 00:16:51,552
TRUST WE CAN ALL MAKE
A LOT OF MONEY.
347
00:16:51,654 --> 00:16:53,120
[ LAUGHS ]
348
00:16:53,222 --> 00:16:57,258
Narrator: EACH SIDE IS NOW ARMED
TO DO BATTLE ON WALL STREET.
349
00:16:59,228 --> 00:17:01,695
IN MARCH OF 1868,
350
00:17:01,798 --> 00:17:04,799
VANDERBILT MAKES HIS MOVE
TO TAKE OVER THE ERIE.
351
00:17:04,901 --> 00:17:08,669
HE ORDERS HIS BROKERS,
FRANK WORK AND JOHN TOBIN,
352
00:17:08,771 --> 00:17:10,871
TO BUY UP SHARES OF ERIE STOCK.
353
00:17:12,175 --> 00:17:13,207
THE ERIE'S UP.
354
00:17:13,309 --> 00:17:15,743
BUYING ERIE.
WHO'S SELLING?
355
00:17:15,845 --> 00:17:17,945
Ackerman: VANDERBILT THOUGHT
IT WOULD BE RELATIVELY EASY
356
00:17:18,047 --> 00:17:19,980
TO TAKE OVER THE ERIE
BECAUSE HE HAD A BIG BANKROLL.
357
00:17:20,083 --> 00:17:24,885
[ INDISTINCT SHOUTING ]
358
00:17:24,987 --> 00:17:26,754
Narrator:
PRICES QUICKLY RISE.
359
00:17:26,856 --> 00:17:28,722
Ackerman: VANDERBILT WAS KNOWN
TO BE SOMEONE
360
00:17:28,825 --> 00:17:30,124
WHO WOULD BUILD THE MARKET.
361
00:17:30,226 --> 00:17:32,359
Brokamp:
A BULL MARKET IS A MARKET
362
00:17:32,462 --> 00:17:34,562
IN WHICH THE PRICES
ARE GOING UP.
363
00:17:34,664 --> 00:17:36,363
RIGHT HERE.
I'LL TAKE TOP 30.
364
00:17:36,466 --> 00:17:38,866
IT TAKES A LOT OF DEMAND
TO DRIVE UP THOSE PRICES.
365
00:17:38,968 --> 00:17:40,734
[ INDISTINCT SHOUTING ]
366
00:17:40,837 --> 00:17:43,003
FOR ONE PERSON
TO CREATE A BULL MARKET,
367
00:17:43,106 --> 00:17:46,273
THAT TAKES THE KIND OF MONEY
THAT CORNELIUS VANDERBILT HAD.
368
00:17:47,477 --> 00:17:48,776
Work:
BUYING 200 HERE. 200.
369
00:17:48,878 --> 00:17:51,946
Narrator: WORDS GETS OUT --
VANDERBILT IS BUYING UP ERIE.
370
00:17:52,048 --> 00:17:53,981
READ ALL ABOUT IT!
371
00:17:54,083 --> 00:17:57,218
UNLESS THE ERIE GANG CAN
OUT-MANEUVER VANDERBILT,
372
00:17:57,320 --> 00:17:59,887
HE'LL OWN 51%
OF THE COMPANY'S STOCK
373
00:17:59,989 --> 00:18:01,989
AND TAKE CONTROL
OF THE RAILROAD.
374
00:18:02,091 --> 00:18:03,958
I'LL TAKE THOSE THREE.
I'LL TAKE THOSE 30.
375
00:18:04,060 --> 00:18:08,629
DREW, GOULD, AND FISK WILL DO
ANYTHING TO STOP THE COMMODORE.
376
00:18:08,731 --> 00:18:11,198
IT'S THE START OF THE ERIE WAR.
377
00:18:11,300 --> 00:18:13,601
THE BATTLE
OVER THE NEXT FEW DAYS
378
00:18:13,703 --> 00:18:16,403
WILL FOREVER CHANGE
THE RULES OF WALL STREET.
379
00:18:21,377 --> 00:18:22,810
VANDERBILT IS CONFIDENT
380
00:18:22,912 --> 00:18:25,980
HE CAN WIN THIS WAR
AGAINST THE ERIE GANG.
381
00:18:26,082 --> 00:18:29,216
Gordon: CORNELIUS VANDERBILT
WAS JUST BORN COMPETITIVE.
382
00:18:29,318 --> 00:18:33,087
HE LOVED TO PLAY THE GAME,
WHATEVER THE GAME WAS,
383
00:18:33,189 --> 00:18:35,422
AND HE LOVED TO WIN.
384
00:18:35,525 --> 00:18:40,227
NOW, FIRST THING MONDAY MORNING,
GET THE REST.
385
00:18:40,329 --> 00:18:41,595
GET IT ALL.
386
00:18:41,697 --> 00:18:44,565
CORNELIUS, PRICES ARE
JUST GONNA CONTINUE TO GO UP.
387
00:18:47,470 --> 00:18:48,836
ONE MINUTE.
388
00:18:48,938 --> 00:18:54,141
VANDERBILT WAS CERTAIN THAT
NO ONE COULD DEFEAT VANDERBILT.
389
00:18:54,210 --> 00:18:56,410
THAT'S GOOD.
390
00:18:56,512 --> 00:18:59,647
THAT'S WHAT HE BELIEVED.
391
00:18:59,749 --> 00:19:03,450
WELL, WE CAN'T STOP NOW.
WE GOT TO KEEP BUYING.
392
00:19:03,553 --> 00:19:05,819
VANDERBILT THOUGHT
THAT HE HAD TIED DOWN DREW,
393
00:19:05,922 --> 00:19:08,255
PREVENTED HIM
FROM HIS USUAL SHENANIGANS,
394
00:19:08,357 --> 00:19:11,292
AND THAT HE HAD THE MONEY
AND THE POWER TO BUY THE STOCK,
395
00:19:11,394 --> 00:19:13,494
AND THEREFORE, HE WOULD GET
CONTROL OF ERIE.
396
00:19:13,596 --> 00:19:15,429
DREW'S UP TO SOMETHING.
397
00:19:15,531 --> 00:19:17,064
PERHAPS.
398
00:19:17,166 --> 00:19:20,634
BUT BETWEEN ALL OF US,
WE'LL WIN.
399
00:19:20,736 --> 00:19:22,203
[ LAUGHTER ]
400
00:19:22,305 --> 00:19:24,738
I THINK HE WAS QUITE CONFIDENT
THAT THIS WAS GOING TO BE
401
00:19:24,840 --> 00:19:26,774
A RELATIVELY SIMPLE,
STRAIGHTFORWARD MATTER
402
00:19:26,876 --> 00:19:28,209
OF BUYING CONTROL OF A COMPANY.
403
00:19:28,311 --> 00:19:29,210
TO ERIE!
404
00:19:29,312 --> 00:19:30,544
-TO ERIE.
-ERIE.
405
00:19:30,646 --> 00:19:33,981
Narrator: THE FINAL TAKEOVER
IS ONLY DAYS AWAY,
406
00:19:34,083 --> 00:19:37,251
BUT VANDERBILT
IS IN FOR A SHOCK.
407
00:19:37,353 --> 00:19:38,786
HE WON'T KNOW WHAT HIT HIM.
408
00:19:38,888 --> 00:19:40,588
[ LAUGHS ]
409
00:19:50,967 --> 00:19:53,367
Narrator:
TOWARD THE END OF THE 1860s,
410
00:19:53,469 --> 00:19:56,837
AMERICAN INDUSTRY AND COMMERCE
ARE BOOMING.
411
00:19:56,939 --> 00:19:59,306
THE RAILROADS WERE THE BIGGEST
OF THE BIG CORPORATIONS.
412
00:19:59,408 --> 00:20:01,375
THEY WERE THE BIG FISH
IN THE STOCK EXCHANGE.
413
00:20:01,477 --> 00:20:03,110
[ TRAIN BELL RINGING ]
414
00:20:03,212 --> 00:20:04,545
Narrator: IN 1868,
415
00:20:04,647 --> 00:20:07,681
CORNELIUS VANDERBILT
WANTS TO BUY THE ERIE RAILROAD
416
00:20:07,783 --> 00:20:10,651
AND CREATE A RAIL EMPIRE
FROM EAST TO WEST.
417
00:20:12,154 --> 00:20:13,854
BUT A TRIO OF ERIE DIRECTORS
418
00:20:13,956 --> 00:20:16,790
WILL STOP AT NOTHING
TO PREVENT IT.
419
00:20:16,892 --> 00:20:22,363
OH, IF HE WANTS THE ERIE,
WE'LL GIVE HIM THE ERIE.
420
00:20:22,465 --> 00:20:26,133
DANIEL DREW'S PROTéGéS,
JIM FISK AND JAY GOULD,
421
00:20:26,235 --> 00:20:29,970
PULL A CLASSIC DREW MOVE
TO STOP VANDERBILT.
422
00:20:30,072 --> 00:20:33,641
Ackerman: THEY START TO THINK
ABOUT LAYING A TRAP,
423
00:20:33,743 --> 00:20:36,443
AND THEY COME UP
WITH A PRETTY GOOD ONE.
424
00:20:36,545 --> 00:20:38,479
Narrator:
THEY SPEND A WEEKEND
425
00:20:38,581 --> 00:20:42,182
PRINTING NEW ERIE STOCK
CERTIFICATES TO WATER THE STOCK.
426
00:20:42,251 --> 00:20:46,120
WATERING THE STOCK IS A WAY TO
INFLATE THE VALUE OF YOUR ASSET,
427
00:20:46,222 --> 00:20:48,689
AND ACTUALLY IT BEGAN
WITH DANIEL DREW
428
00:20:48,791 --> 00:20:50,591
'CAUSE HE BEGAN
AS A CATTLE DRIVER.
429
00:20:50,693 --> 00:20:53,594
Nelson:
HE WOULD TAKE HIS LIVESTOCK,
GIVE THEM LOTS OF SALT
430
00:20:53,696 --> 00:20:55,529
RIGHT BEFORE
HE WAS GONNA DELIVER THEM.
431
00:20:55,631 --> 00:20:56,897
WHEN THEY LICKED THE SALT,
432
00:20:56,999 --> 00:20:59,133
THEY WOULD DRINK
INSANE AMOUNTS OF WATER.
433
00:20:59,235 --> 00:21:01,568
Ackerman: THEN WE WOULD SELL
THEM AND WEIGH THEM
434
00:21:01,671 --> 00:21:03,671
WHILE THEY WERE GOOD
AND FAT AND HEAVY.
435
00:21:03,773 --> 00:21:06,807
THAT WAS THE BIRTH
OF THE CONCEPT OF WATERED STOCK.
436
00:21:06,909 --> 00:21:12,279
Narrator:
FISK AND GOULD PRINT OUT
50,000 SHARES OF NEW ERIE STOCK.
437
00:21:13,916 --> 00:21:15,549
WE'RE GONNA MAKE HIM BLEED.
438
00:21:15,651 --> 00:21:20,421
TODAY, THE IDEA OF PRINTING YOUR
OWN STOCKS IS UNTHINKABLE...
439
00:21:20,523 --> 00:21:21,755
NOT TO MENTION ILLEGAL.
440
00:21:21,857 --> 00:21:24,224
IMAGINE THE PRESS.
THEY'LL FEAST ON HIM.
441
00:21:24,327 --> 00:21:25,959
[ LAUGHS ]
442
00:21:26,062 --> 00:21:28,595
HE WON'T KNOW WHAT HIT HIM.
443
00:21:28,698 --> 00:21:31,031
[ LAUGHS ]
444
00:21:34,003 --> 00:21:35,169
BUYING ERIE.
WHO'S SELLING?
445
00:21:35,271 --> 00:21:36,904
Narrator:
AT THE START OF TRADING,
446
00:21:37,006 --> 00:21:38,672
VANDERBILT'S BROKERS
RUSHED TO BUY
447
00:21:38,774 --> 00:21:40,574
ALL THE REMAINING ERIE STOCK
ON OFFER.
448
00:21:40,676 --> 00:21:43,143
GOT 30 SHARES AT $73.
449
00:21:43,245 --> 00:21:45,346
[ INDISTINCT SHOUTING ]
450
00:21:48,117 --> 00:21:51,518
GOULD WATCHES
AS HIS BATTLE PLAN UNFOLDS.
451
00:21:51,620 --> 00:21:53,487
LOOKING GOOD, JAY.
452
00:21:53,589 --> 00:21:55,622
THANK YOU, DANIEL.
453
00:21:55,725 --> 00:21:57,524
BUYING ERIE.
WHO'S SELLING?
454
00:21:57,626 --> 00:22:00,494
[ SHOUTING CONTINUES ]
455
00:22:00,596 --> 00:22:02,629
$78. $78.
BUYING AT $78.
456
00:22:02,732 --> 00:22:05,632
Narrator: AS ERIE'S STOCK PRICES
CONTINUE TO RISE,
457
00:22:05,735 --> 00:22:08,435
GOULD BIDES HIS TIME.
458
00:22:08,537 --> 00:22:10,204
THAT WILL DO, GENTLEMEN.
459
00:22:10,306 --> 00:22:13,040
[ BELL RINGS ]
460
00:22:13,142 --> 00:22:14,675
TO THE STREETS!
461
00:22:14,777 --> 00:22:16,176
WITH OFFICIAL TRADING OVER,
462
00:22:16,278 --> 00:22:18,612
GOULD WATCHES THE WAR
MOVE TO THE STREETS,
463
00:22:18,714 --> 00:22:20,280
WHERE THE BUYING SPREE
CONTINUES.
464
00:22:20,383 --> 00:22:22,015
Gordon:
IT WAS BEING BOUGHT ON THE CURB.
465
00:22:22,118 --> 00:22:23,317
IT WAS BEING BOUGHT WHEREVER --
466
00:22:23,419 --> 00:22:25,352
IF THEY COULD FIND SOMEBODY
IN A RESTAURANT UPTOWN
467
00:22:25,454 --> 00:22:27,020
WHO HAD ERIE FOR SALE,
THEY'D BUY IT.
468
00:22:27,123 --> 00:22:29,690
[ INDISTINCT BARGAINING ]
469
00:22:29,792 --> 00:22:32,493
NOW'S THE TIME
TO PLAY OUR NEXT MOVE.
470
00:22:32,595 --> 00:22:33,594
NO.
471
00:22:33,696 --> 00:22:35,829
-SOLD.
-YOUR 500, AS WELL.
472
00:22:35,931 --> 00:22:38,465
TIMING IS EVERYTHING.
473
00:22:38,567 --> 00:22:40,701
I'VE GOT 25 MORE SHARES.
474
00:22:40,803 --> 00:22:43,604
WE CAN RIDE THIS
A LITTLE FURTHER.
475
00:22:43,706 --> 00:22:47,708
Narrator: GOULD HAS FULL COMMAND
OF THE BATTLEFIELD.
476
00:22:47,810 --> 00:22:51,478
I'VE GOT 25 MORE SHARES.
SELLING 25 SHARES.
477
00:22:51,580 --> 00:22:53,614
Gordon:
WALL STREET WAS IN A FRENZY.
478
00:22:53,716 --> 00:22:55,516
IT WAS MADNESS.
479
00:22:55,618 --> 00:22:59,086
Narrator: AS THE PRICE RISES,
SO DO THE STAKES.
480
00:22:59,188 --> 00:23:01,722
VANDERBILT KEPT BUYING
AND KEPT BUYING.
481
00:23:01,824 --> 00:23:05,926
JAY, LET'S NOT LET THIS
GO TOO FAR.
482
00:23:06,028 --> 00:23:07,428
I'VE GOT
20 SHARES OF ERIE.
483
00:23:07,530 --> 00:23:11,532
GOULD HAD 100,000 REASONS WHY
VANDERBILT WAS GONNA LOSE THIS.
484
00:23:11,634 --> 00:23:14,435
-TRUST ME.
-WHO HAS 10 SHARES?
485
00:23:14,537 --> 00:23:16,703
BY NOON, IT WAS $83 A SHARE.
486
00:23:16,806 --> 00:23:18,806
I'VE GOT 25 MORE SHARES.
487
00:23:18,908 --> 00:23:22,042
Narrator: ERIE'S STOCKS
ARE DISAPPEARING FAST.
488
00:23:22,144 --> 00:23:25,179
BY THE AFTERNOON,
VANDERBILT BELIEVES
489
00:23:25,281 --> 00:23:28,382
THAT HE HAS GOTTEN
ROUGHLY 51% OF THE STOCK.
490
00:23:30,186 --> 00:23:33,020
VANDERBILT NEVER SEES
WHAT'S COMING.
491
00:23:33,122 --> 00:23:34,154
AAAH.
492
00:23:35,324 --> 00:23:37,057
HOT ENOUGH FOR YOU?
493
00:23:37,159 --> 00:23:38,592
IT IS.
494
00:23:38,694 --> 00:23:41,762
SELL -- SLOWLY AT FIRST.
495
00:23:41,864 --> 00:23:43,330
I'VE GOT 20 SHARES.
20 SHARES.
496
00:23:43,432 --> 00:23:45,766
100 SHARES
OF ERIE STOCK HERE.
497
00:23:45,868 --> 00:23:47,534
THAT'S RIGHT, GENTLEMEN --
100 SHARES.
498
00:23:47,636 --> 00:23:48,702
WHO'S ON?
499
00:23:48,804 --> 00:23:52,272
Narrator: GOULD BEGINS
WATERING THE MARKET.
500
00:23:52,374 --> 00:23:54,908
THIS WAS THE TURNING POINT
IN THE ERIE WAR.
501
00:23:55,010 --> 00:23:56,343
IT CHANGED EVERYTHING.
502
00:23:56,445 --> 00:23:59,112
I GOT 500 SHARES OF ERIE.
503
00:23:59,215 --> 00:24:01,081
500 SHARES.
504
00:24:01,183 --> 00:24:03,150
Ackerman:
PEOPLE BECAME SUSPICIOUS.
505
00:24:03,252 --> 00:24:04,518
500 SHARES OF ERIE STOCK.
506
00:24:04,620 --> 00:24:08,422
WHERE IS ALL OF THIS
ERIE STOCK COMING FROM?
507
00:24:08,524 --> 00:24:10,190
-100 SHARES.
-25 SHARES.
508
00:24:10,292 --> 00:24:12,659
I'LL DROP IT DOWN TO 85.
100 SHARES, ANYONE?
509
00:24:12,761 --> 00:24:15,329
Narrator: THE FLOOD OF NEW STOCK
SLOWS THE BUYING.
510
00:24:15,431 --> 00:24:18,098
IT'S KNOWN AS A BEAR RAID.
511
00:24:18,200 --> 00:24:20,200
Nelson:
THIS IS A CLASSIC BEAR MANEUVER.
512
00:24:20,302 --> 00:24:23,036
WHAT HAPPENED? INVESTORS GOT
COLD FEET AND STOPPED BUYING.
513
00:24:23,138 --> 00:24:25,172
100 SHARES
OF ERIE STOCK HERE.
514
00:24:25,274 --> 00:24:26,507
WHEN THERE'S A BEAR MARKET,
515
00:24:26,609 --> 00:24:28,675
THERE ARE FEWER PEOPLE WILLING
TO BUY SHARES
516
00:24:28,777 --> 00:24:31,545
BECAUSE THEY'VE LOST CONFIDENCE
IN THE STOCK MARKET
517
00:24:31,647 --> 00:24:34,648
AND THE ABILITY TO MAKE
ANY MONEY BY BUYING STOCKS.
518
00:24:34,750 --> 00:24:38,585
[ INDISTINCT BARGAINING ]
519
00:24:38,687 --> 00:24:42,189
Narrator: GOULD IS BECOMING
THE NEW WIZARD OF WALL STREET.
520
00:24:43,626 --> 00:24:45,092
Gordon:
HE REALLY UNDERSTOOD
521
00:24:45,194 --> 00:24:48,295
THE ECONOMIC FORCES
GOING ON HERE VERY WELL.
522
00:24:48,397 --> 00:24:51,798
Ackerman:
NO ONE HAD REALLY DONE ANYTHING
QUITE ON THIS SCALE BEFORE.
523
00:24:51,901 --> 00:24:56,169
IT WAS THE FIRST BIG FINANCIAL
TAKEOVER IN AMERICAN HISTORY.
524
00:24:56,272 --> 00:24:57,838
SIR, I WILL TAKE
YOUR 500, AS WELL.
525
00:24:57,940 --> 00:25:00,507
Narrator: BY 3:00 P.M.,
THE STOCK IS IN FREE FALL.
526
00:25:00,609 --> 00:25:05,712
THE PRICE STANDS AT $71 A SHARE,
DOWN FROM A HIGH OF $83.
527
00:25:05,814 --> 00:25:07,114
Ackerman: AT THIS POINT,
528
00:25:07,216 --> 00:25:09,149
THE ONLY PEOPLE WHO REALLY KNOW
HOW MUCH STOCK THERE IS
529
00:25:09,251 --> 00:25:11,084
ARE JAY GOULD AND JIM FISK
AND DANIEL DREW.
530
00:25:11,186 --> 00:25:12,553
175 SHARES.
531
00:25:12,655 --> 00:25:15,489
Narrator: THIS SPELLS DISASTER
FOR VANDERBILT AND HIS AGENTS.
532
00:25:15,591 --> 00:25:17,257
WE MUST TELL
THE COMMODORE.
533
00:25:17,359 --> 00:25:18,992
25 MORE SHARES.
534
00:25:19,094 --> 00:25:20,661
175 SHARES.
535
00:25:20,763 --> 00:25:23,463
Gordon: SINCE NOBODY KNEW HOW
MANY SHARES WERE OUT THERE,
536
00:25:23,566 --> 00:25:27,000
NOBODY KNEW IF HE HAD CONTROL
OR NOT, INCLUDING THE COMMODORE.
537
00:25:30,339 --> 00:25:31,738
I HAVE BAD NEWS.
538
00:25:31,840 --> 00:25:33,674
WHAT?
539
00:25:33,776 --> 00:25:36,043
PRICES ON THE ERIE
ARE SINKING.
540
00:25:36,145 --> 00:25:37,744
HOW?
541
00:25:37,846 --> 00:25:40,681
Gordon: NOBODY WANTED TO MAKE
COMMODORE VANDERBILT ANGRY.
542
00:25:40,783 --> 00:25:43,917
THEY SAID HE WAS EQUALLY EXACT
IN FULFILLING HIS THREATS.
543
00:25:44,019 --> 00:25:46,520
THERE'S A FLOOD OF STOCK.
544
00:25:46,622 --> 00:25:48,221
IT CAME ON THE MARKET
JUST AFTER NOON.
545
00:25:48,324 --> 00:25:51,491
WHAT?!
LET ME SEE THOSE STOCKS.
546
00:25:54,430 --> 00:25:57,364
Ackerman: ONCE VANDERBILT
SAW THE STOCK CERTIFICATE,
547
00:25:57,466 --> 00:25:58,899
HE WOULD HAVE SEEN VERY QUICKLY
548
00:25:59,001 --> 00:26:01,835
THAT IT HAD BEEN PRINTED
WITHIN THE LAST DAY OR SO.
549
00:26:01,937 --> 00:26:04,571
IT WOULD HAVE HAD NO RUFFLES
AROUND THE EDGES.
550
00:26:04,673 --> 00:26:07,808
IT WAS A PHYSICAL PIECE OF PAPER
THAT WAS CRISP AND NEW,
551
00:26:07,910 --> 00:26:09,376
FRESH OFF THE PRINTING PRESS.
552
00:26:09,478 --> 00:26:11,612
DAMN! DREW.
553
00:26:11,714 --> 00:26:14,281
HE HAD SPENT A HUGE AMOUNT
OF MONEY BUYING ERIE STOCK,
554
00:26:14,383 --> 00:26:17,384
AND SUDDENLY HE FOUND
THAT THE GOALPOST HAD MOVED.
555
00:26:17,486 --> 00:26:19,286
WHAT SHOULD WE DO?
556
00:26:19,388 --> 00:26:21,321
DO?
BUY EVERY BIT OF STOCK
557
00:26:21,423 --> 00:26:23,824
THOSE SONS OF BITCHES
ARE SELLING.
558
00:26:23,926 --> 00:26:25,926
Ackerman:
HE WAS NOT ABOUT TO DROP THIS.
559
00:26:26,028 --> 00:26:27,928
IN THE MIDDLE OF THE FIGHT,
HE WAS GOING TO KEEP FIGHTING.
560
00:26:28,030 --> 00:26:31,798
THEY THINK THEY CAN PICK
MY POCKET, HUH?
561
00:26:31,900 --> 00:26:34,968
HE HAD BEEN CHEATED, AND HE DID
NOT LIKE BEING CHEATED.
562
00:26:35,070 --> 00:26:36,436
[ INDISTINCT BARGAINING ]
563
00:26:36,538 --> 00:26:38,672
Narrator: VANDERBILT'S TRADERS,
WORK AND TOBIN,
564
00:26:38,774 --> 00:26:40,240
HEAD BACK TO WALL STREET.
565
00:26:40,342 --> 00:26:42,643
GOT 10 MORE SHARES.
566
00:26:42,745 --> 00:26:45,278
VANDERBILT'S SHREWD TACTIC
TO KEEP BUYING
567
00:26:45,381 --> 00:26:48,882
BRINGS THE PRICE BACK UP,
BUT COSTS HIM MILLIONS.
568
00:26:48,984 --> 00:26:51,051
-SOLD!
-I'LL TAKE ALL YOUR SHARES.
569
00:26:52,421 --> 00:26:55,522
Ackerman: THE AMOUNT OF MONEY
THAT VANDERBILT HAS SPENT
570
00:26:55,624 --> 00:26:59,393
IS IN THE RANGE
OF $8 OR $9 MILLION.
571
00:26:59,495 --> 00:27:01,194
IT WAS ENOUGH TO CRAMP THE STYLE
572
00:27:01,296 --> 00:27:03,830
OF EVEN SOMEONE AS BIG
AS CORNELIUS VANDERBILT.
573
00:27:03,932 --> 00:27:05,999
WELL,
HOW MUCH DO WE OWN?
574
00:27:06,101 --> 00:27:08,869
YOU CAN'T FIGURE OUT IF YOU HAVE
51% OF THE SHARES OUTSTANDING
575
00:27:08,971 --> 00:27:11,405
IF YOU DON'T KNOW HOW MANY
SHARES ARE OUTSTANDING.
576
00:27:12,875 --> 00:27:14,107
WE HAVE NO IDEA, SIR.
577
00:27:14,209 --> 00:27:16,276
THEY'RE IN CONTEMPT!
578
00:27:16,378 --> 00:27:18,445
BRING ME THE SCURVY DOGS.
579
00:27:20,149 --> 00:27:22,949
Ackerman: THE NEXT MORNING,
HE WENT BACK TO JUDGE BARNARD,
580
00:27:23,052 --> 00:27:25,085
WHO ISSUED THE ORIGINAL
INJUNCTION
581
00:27:25,187 --> 00:27:26,920
AGAINST PRINTING NEW STOCK.
582
00:27:28,490 --> 00:27:32,292
BARNARD DID NOT LIKE SEEING
HIS INJUNCTIONS VIOLATED.
583
00:27:32,394 --> 00:27:34,594
Narrator:
VANDERBILT ORDERS JUDGE BARNARD
584
00:27:34,697 --> 00:27:37,097
TO ISSUE AN ARREST WARRANT
FOR THE ERIE GANG.
585
00:27:37,199 --> 00:27:38,565
HE WAS OUT FOR BLOOD.
586
00:27:38,667 --> 00:27:40,434
Narrator:
VANDERBILT IS DETERMINED
587
00:27:40,536 --> 00:27:42,369
THAT THE FUTURE
OF AMERICAN COMMERCE
588
00:27:42,471 --> 00:27:46,940
IS NOT GOING TO BE CONTROLLED
BY A SCOUNDREL LIKE DREW.
589
00:27:47,042 --> 00:27:48,975
I'LL BURY THEM!
590
00:27:58,454 --> 00:28:02,189
Narrator:
IT'S THE WILD WEST DAYS
OF THE AMERICAN STOCK MARKET --
591
00:28:02,291 --> 00:28:06,226
AN EPIC SHOWDOWN OVER ONE OF
THE NATION'S BIGGEST COMPANIES.
592
00:28:06,361 --> 00:28:09,596
AMERICA HAS NEVER SEEN
ANYTHING LIKE IT.
593
00:28:09,698 --> 00:28:11,298
THE IMPEACHMENT
OF ANDREW JOHNSON
594
00:28:11,400 --> 00:28:13,366
WAS GOING ON AT THE SAME TIME
IN WASHINGTON,
595
00:28:13,469 --> 00:28:15,268
AND THE ERIE WARS WERE GETTING
MUCH MORE COVERAGE
596
00:28:15,370 --> 00:28:17,104
IN THE NEW YORK HERALD
AND THE NEW YORK TIMES
597
00:28:17,206 --> 00:28:18,338
AND WHAT HAVE YOU.
598
00:28:18,440 --> 00:28:19,639
READ ALL ABOUT IT!
599
00:28:19,742 --> 00:28:21,508
Narrator:
AND EVERYONE WANTS TO KNOW
600
00:28:21,610 --> 00:28:24,177
WHO WILL BE THE LAST MAN
STANDING.
601
00:28:25,881 --> 00:28:29,015
THE ERIE GANG BASK
IN THE GLOW OF SUCCESS.
602
00:28:29,118 --> 00:28:33,887
THIS IS MORE FUN THAN SELLING
COTTON TO THE UNION ARMY.
603
00:28:33,989 --> 00:28:35,322
[ LAUGHS ]
604
00:28:35,424 --> 00:28:36,757
THEY'RE SWIMMING IN CASH.
605
00:28:36,859 --> 00:28:39,526
THERE ARE LITERALLY DESCRIPTIONS
OF THEM, YOU KNOW,
606
00:28:39,628 --> 00:28:41,828
PILING THE MONEY
AND PUTTING IT IN STACKS
607
00:28:41,930 --> 00:28:43,764
AND SEEING
HOW MUCH MONEY THERE WAS.
608
00:28:43,866 --> 00:28:45,265
VANDERBILT'S CASH.
609
00:28:45,367 --> 00:28:48,368
Narrator: GOULD, FISK, AND DREW
HAVE SCAMMED VANDERBILT
610
00:28:48,470 --> 00:28:53,039
OUT OF $7 MILLION -- OVER
$100 MILLION IN TODAY'S MONEY.
611
00:28:53,142 --> 00:28:55,375
AND THEY STILL CONTROL
THE RAILROAD
612
00:28:55,444 --> 00:28:58,712
HE'S JUST SPENT A FORTUNE
FAILING TO ACQUIRE.
613
00:28:58,814 --> 00:29:01,915
Gordon: AND THIS DEPLETED
THE CASH SUPPLY.
614
00:29:02,017 --> 00:29:05,952
$7 MILLION WAS A TREMENDOUS
AMOUNT OF MONEY IN 1868.
615
00:29:06,054 --> 00:29:08,855
IT IS A BEAUTIFUL SIGHT
TO BEHOLD.
616
00:29:11,760 --> 00:29:14,728
Narrator: WHEN VANDERBILT
DISCOVERS THE PLOT AGAINST HIM,
617
00:29:14,830 --> 00:29:16,696
HE'S OUT FOR BLOOD,
618
00:29:16,799 --> 00:29:20,567
AND HE HAS JUDGE BARNARD ISSUE
A WARRANT FOR THE ERIE GANG.
619
00:29:20,669 --> 00:29:23,036
Gordon: VANDERBILT DID NOT LIKE
BEING MADE A FOOL OF,
620
00:29:23,138 --> 00:29:25,472
AND VERY SELDOM WAS HE FOOLED.
621
00:29:25,574 --> 00:29:31,077
AND IT GETS TO THAT NUB
OF VANDERBILT'S ANXIETY --
622
00:29:31,180 --> 00:29:33,346
THAT VANDERBILT,
FOR ALL HIS CAPITAL,
623
00:29:33,448 --> 00:29:35,415
FOR ALL HIS WEALTH,
IS NOT SMART ENOUGH
624
00:29:35,517 --> 00:29:37,350
TO BE
A REAL STOCK-MARKET OPERATOR,
625
00:29:37,452 --> 00:29:39,352
AND I THINK
THAT'S PRECISELY THE THING
626
00:29:39,454 --> 00:29:41,788
THAT IRRITATES HIM SO MUCH
ABOUT GOULD AND FISK,
627
00:29:41,890 --> 00:29:43,590
WHY HE WANTS THEM ARRESTED.
628
00:29:45,427 --> 00:29:47,994
Narrator: WHILE VANDERBILT PLANS
HIS NEXT MOVE,
629
00:29:48,096 --> 00:29:53,033
GOULD, DREW, AND FISK ARE
ABOUT TO GET SOME BAD NEWS.
630
00:29:53,135 --> 00:29:56,203
THEY THINK THEY'VE WON,
AND THAT'S WHEN THEY GET
THE KNOCK ON THE DOOR...
631
00:29:56,305 --> 00:29:57,871
[ KNOCK ON DOOR ]
...AND THEY DISCOVER
632
00:29:57,973 --> 00:29:59,840
THAT BARNARD HAS FIGURED OUT
WHERE THEY ARE...
633
00:29:59,942 --> 00:30:01,141
GENTLEMEN, THEY'RE COMING.
634
00:30:01,243 --> 00:30:02,709
...AND THAT THEY'RE GONNA BE
SERVED WITH AN INJUNCTION
635
00:30:02,811 --> 00:30:04,110
AND THEY'RE GONNA
END UP IN JAIL.
636
00:30:04,213 --> 00:30:07,147
I HAVE NO STOMACH FOR A SPELL
IN THE LUDLOW STREET JAIL.
637
00:30:07,249 --> 00:30:08,548
WE HAVE TO GET OUT
OF NEW YORK.
638
00:30:08,650 --> 00:30:12,085
SO THE ONLY THING TO DO
WAS TO GET OUT OF DODGE.
639
00:30:12,187 --> 00:30:14,221
I HEAR NEW JERSEY'S
BEAUTIFUL THIS TIME OF YEAR.
640
00:30:14,323 --> 00:30:15,989
Nelson: GOULD WAS SMART,
AND HE BELIEVED
641
00:30:16,091 --> 00:30:17,791
THAT IF HE COULD GET OUT
OF NEW YORK CITY,
642
00:30:17,893 --> 00:30:19,025
THE LAW COULD NOT TOUCH HIM.
643
00:30:19,127 --> 00:30:21,294
GIVE ME THE MONEY.
I SHALL MEET YOU IN JERSEY.
644
00:30:21,396 --> 00:30:23,396
I'LL GET THE MONEY.
YOU GET THE BOOKS.
645
00:30:25,400 --> 00:30:28,902
Narrator: GOULD KNOWS THEY CAN'T
LEAVE ANY EVIDENCE BEHIND.
646
00:30:29,004 --> 00:30:31,738
Ackerman: IT WAS VERY IMPORTANT
FOR DREW, FISK, AND GOULD
647
00:30:31,840 --> 00:30:34,674
TO TAKE NOT JUST THE MONEY,
BUT ALSO THEIR SENSITIVE PAPERS,
648
00:30:34,776 --> 00:30:37,010
THE ERIE RAILROAD ACCOUNT BOOKS,
TO NEW JERSEY
649
00:30:37,112 --> 00:30:39,746
IN ORDER TO KEEP THEM SAFE
FROM THE NEW YORK COURTS.
650
00:30:39,848 --> 00:30:42,782
HERE, HERE, HERE, HERE, HERE,
HERE, HERE, HERE.
651
00:30:42,885 --> 00:30:45,485
I GOT IT, I GOT IT.
GO, GO, GO.
652
00:30:52,361 --> 00:30:54,094
Narrator: THE ERIE GANG BEAT
A HASTY RETREAT.
653
00:30:54,162 --> 00:30:55,161
[ BLOWS WHISTLE ]
654
00:30:55,264 --> 00:30:57,097
Officer:
HEY, YOU LOT, STOP RIGHT THERE!
655
00:30:57,199 --> 00:31:00,600
Gordon:
THE COPS SAW THESE GUYS RUNNING
OUT OF THE ERIE RAILWAY OFFICES
656
00:31:00,702 --> 00:31:02,502
CARRYING STUFF
EARLY IN THE MORNING,
657
00:31:02,604 --> 00:31:04,537
AND HE FIGURED THEY
WERE ROBBING THE JOINT.
658
00:31:04,640 --> 00:31:06,406
I MEAN, IT'S A REASONABLE
CONCLUSION.
659
00:31:06,508 --> 00:31:08,475
WE'RE OFFICERS
OF THE ERIE.
660
00:31:08,577 --> 00:31:11,845
THEY EXPLAINED THEY WERE JUST
THE BOARD OF DIRECTORS
661
00:31:11,947 --> 00:31:14,514
OF ERIE RAILWAY
ESCAPING TO NEW JERSEY.
662
00:31:14,616 --> 00:31:16,349
"PAY NO ATTENTION, OFFICER."
663
00:31:16,451 --> 00:31:18,551
MY APOLOGIES, GENTLEMEN.
664
00:31:18,654 --> 00:31:20,754
I'M SURE HE DIDN'T HAVE ANY IDEA
665
00:31:20,856 --> 00:31:22,889
OF JUDGE BARNARD'S
ARREST WARRANT.
666
00:31:22,991 --> 00:31:25,592
I MEAN, THEY DIDN'T HAVE POLICE
RADIOS AND STUFF IN THOSE DAYS.
667
00:31:27,029 --> 00:31:28,194
THANK YOU, OFFICER.
668
00:31:28,297 --> 00:31:31,898
THE STREETS ARE POSITIVELY
AWASH WITH SCOUNDRELS.
669
00:31:39,308 --> 00:31:41,141
Narrator:
AFTER THIS CLOSE CALL,
670
00:31:41,243 --> 00:31:43,443
DREW LEAVES FOR NEW JERSEY,
671
00:31:43,545 --> 00:31:46,379
WHILE GOULD AND FISK
RISK SOME REVELRY.
672
00:31:46,481 --> 00:31:50,383
Nelson: THESE TWO GUYS HAD
DEFEATED CORNELIUS VANDERBILT.
673
00:31:50,485 --> 00:31:52,953
THEY HAD BILKED HIM
FROM $7 MILLION.
674
00:31:53,055 --> 00:31:54,788
THEY WERE GONNA HAVE THEIR FUN,
675
00:31:54,890 --> 00:31:57,190
NO MATTER WHETHER THE COPS
ARE AFTER THEM OR NOT.
676
00:31:57,292 --> 00:32:00,794
THAT WAS QUITE THE HAUL.
[ LAUGHS ]
677
00:32:00,896 --> 00:32:03,430
Narrator:
GOULD CAN'T RELAX.
678
00:32:03,532 --> 00:32:07,734
HE'S CALLING THE SHOTS
WITH $7 MILLION AT STAKE.
679
00:32:08,770 --> 00:32:10,403
THE SUM
IS FAR SAFER WITH US
680
00:32:10,505 --> 00:32:13,139
THAN IN THE HANDS
OF UNCLE DANIEL.
681
00:32:13,241 --> 00:32:14,808
THEY WERE YIN AND YANG.
682
00:32:14,910 --> 00:32:17,277
TOGETHER,
THEY WERE MUCH MORE POWERFUL
683
00:32:17,379 --> 00:32:18,945
THAN THEY WERE SEPARATELY.
684
00:32:19,047 --> 00:32:20,780
YOU'RE NOT GONNA EAT?
685
00:32:20,882 --> 00:32:22,749
THEY WERE A REMARKABLE PAIR.
686
00:32:22,851 --> 00:32:25,585
WHY DON'T YOU ORDER US
SOME MORE CHAMPAGNE?
687
00:32:25,687 --> 00:32:28,021
WAITER,
MORE CHAMPAGNE!
688
00:32:28,123 --> 00:32:30,924
Narrator:
WHILE FISK AND GOULD CELEBRATE,
689
00:32:31,026 --> 00:32:33,860
VANDERBILT WAITS FOR NEWS
OF THEIR ARREST.
690
00:32:33,962 --> 00:32:37,831
Nelson:
THIS IS REALLY WHERE THE WAR
IN THE STOCK MARKET IS OVER
691
00:32:37,933 --> 00:32:41,634
AND THE WAR OF INJUNCTIONS
HAS REALLY BEGUN.
692
00:32:41,737 --> 00:32:43,903
[ INDISTINCT CONVERSATIONS ]
693
00:32:44,006 --> 00:32:47,674
Narrator: GOULD POSTS A GUARD
TO WATCH FOR POLICE.
694
00:32:47,776 --> 00:32:50,010
Gordon:
GOULD PLANNED AHEAD.
695
00:32:50,112 --> 00:32:51,945
HE ALWAYS PLANNED AHEAD.
696
00:32:53,281 --> 00:32:54,781
-WE HAVE TO GO.
-NOW?
697
00:32:54,883 --> 00:32:56,082
NOW!
698
00:32:56,184 --> 00:32:59,219
THEY LEARN ABOUT MIDWAY
THROUGH THEIR LONG MEAL...
699
00:32:59,321 --> 00:33:01,154
GRAB THE BOOKS, JIM!
GRAB THE BOOKS!
700
00:33:01,256 --> 00:33:02,822
...THAT THEY'VE BEEN DISCOVERED,
701
00:33:02,924 --> 00:33:05,291
THAT VANDERBILT'S MEN
KNOW WHERE THEY ARE
702
00:33:05,394 --> 00:33:07,460
AND THAT THEY'RE ABOUT TO BE
SERVED WITH AN INJUNCTION.
703
00:33:07,562 --> 00:33:09,796
AND SO THEY HIGHTAIL IT
OUT OF THERE.
704
00:33:09,898 --> 00:33:11,431
JIM!
705
00:33:15,137 --> 00:33:17,003
THEY'RE CARRYING
ALL THESE GREENBACKS
706
00:33:17,105 --> 00:33:19,239
ALONG WITH
THE REMAINING STOCK CERTIFICATES
707
00:33:19,341 --> 00:33:20,774
AND BONDS AND THINGS LIKE THAT.
708
00:33:20,876 --> 00:33:22,675
THEY KNEW
THEY NEEDED TO GET OUT OF TOWN.
709
00:33:25,781 --> 00:33:28,782
Gordon: IT WAS A VERY DANGEROUS,
FRIGHTENING TIME, I'M SURE.
710
00:33:28,884 --> 00:33:29,983
[ WHISTLE BLOWS ]
711
00:33:30,085 --> 00:33:33,253
Ackerman: JUDGE BARNARD'S
CONTEMPT CITATIONS
712
00:33:33,355 --> 00:33:36,523
WERE ONLY GOOD
WITHIN THE STATE OF NEW YORK.
713
00:33:36,625 --> 00:33:38,591
THEY COULD CROSS THE RIVER
TO NEW JERSEY,
714
00:33:38,693 --> 00:33:39,826
WHERE THEY WOULD BE SAFE.
715
00:33:39,928 --> 00:33:41,628
[ GRUNTS ]
716
00:33:41,730 --> 00:33:43,530
DRIVER,
TAKE US TO THE DOCKS.
717
00:33:43,632 --> 00:33:45,198
ALL SPEED.
DON'T SPARE THE HORSES!
718
00:33:45,300 --> 00:33:47,167
[ WHISTLE BLOWS ]
719
00:33:50,305 --> 00:33:53,273
WE SUNK THE COMMODORE.
[ LAUGHS ]
720
00:33:53,375 --> 00:33:55,675
DON'T COUNT
YOUR CHICKENS YET, JIM.
721
00:33:55,744 --> 00:33:58,344
Nelson:
VANDERBILT SENDS AN ARMY
722
00:33:58,447 --> 00:34:03,083
OF BOTH LEGAL AND ILLEGAL FOLKS
TO FOLLOW.
723
00:34:03,185 --> 00:34:05,051
BETTER GET THIS
TO THE COMMODORE.
724
00:34:05,153 --> 00:34:07,020
I WAGER A BOUT OF HELL
WILL BE COMING
725
00:34:07,122 --> 00:34:08,855
WHEN HE FINDS OUT
WE MISSED THEM.
726
00:34:08,957 --> 00:34:12,659
NO ONE GETS AWAY WITH CHEATING
CORNELIUS VANDERBILT.
727
00:34:15,597 --> 00:34:17,330
IT'S IN THE PAPER.
THEY'VE ALREADY MADE --
728
00:34:17,432 --> 00:34:18,598
Narrator: THAT THURSDAY,
729
00:34:18,700 --> 00:34:21,134
THE EXCHANGE VOIDS
ALL OF GOULD'S WATERED STOCK.
730
00:34:21,236 --> 00:34:22,335
IT SAYS WHAT?!
731
00:34:22,437 --> 00:34:24,237
THE ADMINISTRATORS
OF THE EXCHANGE HAVE RULED
732
00:34:24,339 --> 00:34:27,140
THAT ANY AND ALL CERTIFICATES
DATED AFTER THE 7th OF MARCH
733
00:34:27,242 --> 00:34:29,409
DO NOT CONSTITUTE
GOOD DELIVERY.
734
00:34:29,511 --> 00:34:32,445
AND SO VANDERBILT HAD
TENS OF THOUSANDS OF SHARES
735
00:34:32,547 --> 00:34:35,148
OF THIS NOW-WORTHLESS STOCK.
736
00:34:35,250 --> 00:34:37,550
WELL, THEY'RE NOT WORTH
THE PAPER THEY'RE PRINTED ON!
737
00:34:37,652 --> 00:34:39,786
WELL, HE WAS FURIOUS.
HE WAS OUTRAGED.
738
00:34:39,888 --> 00:34:41,921
I'M GONNA
BUST THOSE THIEVES.
739
00:34:42,023 --> 00:34:44,257
HE MUST HAVE PEELED
THE WALLPAPER OFF THE WALLS
740
00:34:44,359 --> 00:34:45,458
WITH HIS PROFANITY.
741
00:34:45,560 --> 00:34:48,094
VANDERBILT WAS A VERY
ACCOMPLISHED SWEARER.
742
00:34:48,196 --> 00:34:50,029
I'LL BURY THEM!
743
00:34:50,132 --> 00:34:52,465
Narrator: BOTH SIDES PREPARE
FOR A SHOWDOWN
744
00:34:52,567 --> 00:34:56,736
THAT WILL CHANGE THE WAY AMERICA
DOES BUSINESS FOREVER.
745
00:35:08,717 --> 00:35:13,219
Narrator:
CITIES ALL ACROSS AMERICA
THRIVE AFTER THE CIVIL WAR.
746
00:35:13,321 --> 00:35:16,556
BUT WITH PROSPERITY
COMES CORRUPTION.
747
00:35:16,658 --> 00:35:19,759
THE GOVERNMENT WAS COMPLETELY
CORRUPT AT THAT TIME,
748
00:35:19,861 --> 00:35:23,129
AND SO IT WAS JUST, YOU KNOW,
EVERYBODY FOR HIMSELF.
749
00:35:24,332 --> 00:35:26,266
Narrator:
AFTER VANDERBILT DISCOVERS
750
00:35:26,368 --> 00:35:28,635
THE WATERED STOCK
HE PURCHASED IS INVALID...
751
00:35:28,737 --> 00:35:29,869
DAMN!
752
00:35:29,971 --> 00:35:32,305
...HE WANTS REVENGE.
753
00:35:32,407 --> 00:35:34,507
I'LL BE DAMNED IF I LET
THAT OLD CATTLE THIEF
754
00:35:34,609 --> 00:35:36,576
GET THE BETTER OF ME.
755
00:35:37,946 --> 00:35:41,981
Ackerman: VANDERBILT WAS HOLDING
THE WINNING HAND, LEGALLY.
756
00:35:42,083 --> 00:35:43,950
HE HAD INJUNCTIONS IN PLACE
757
00:35:44,052 --> 00:35:47,720
HOLDING THE ERIE RAILROAD
BOARD OF DIRECTORS IN CONTEMPT.
758
00:35:47,822 --> 00:35:50,957
HE HAD INJUNCTIONS IN PLACE
THAT HE COULD RELY ON
759
00:35:51,059 --> 00:35:54,227
SAYING THAT THE STOCK
HE HAD BEEN SOLD WAS ILLEGAL
760
00:35:54,329 --> 00:35:57,230
AND THEREFORE VOID, THEREFORE
HE SHOULD GET HIS MONEY BACK,
761
00:35:57,332 --> 00:36:00,033
AND HE SHOULD HAVE CONTROL
OF THE ERIE RAILROAD.
762
00:36:00,135 --> 00:36:03,937
SO HE WAS
IN A GOOD LEGAL POSITION.
763
00:36:05,874 --> 00:36:07,540
AH, DRINK UP, GENTLEMEN.
764
00:36:07,642 --> 00:36:10,810
AH, WELCOME TO THE GRAND
AND GLORIOUS TAYLOR HOTEL.
765
00:36:10,912 --> 00:36:14,113
Narrator: HOLED UP IN
THE TAYLOR HOTEL IN JERSEY,
766
00:36:14,216 --> 00:36:18,117
THE ERIE GANG ENLISTS THE PRESS
TO SELL THEIR SPIN ON EVENTS.
767
00:36:18,220 --> 00:36:20,253
Gordon: THE PRESS
JUST ABSOLUTELY LOVED IT.
768
00:36:20,355 --> 00:36:22,055
MM, WRITE -- WRITE THIS --
WRITE THIS.
769
00:36:22,157 --> 00:36:26,759
"WE ARE JUST TRYING TO PROTECT
THE GOOD PEOPLE OF NEW YORK
770
00:36:26,861 --> 00:36:28,661
FROM ANOTHER MONOPOLY."
771
00:36:28,763 --> 00:36:30,563
WHAT THEY'RE CLAIMING
FROM NEW JERSEY
772
00:36:30,665 --> 00:36:33,399
IS THE ERIE WAR'S ALL ABOUT
BREAKING VANDERBILT'S MONOPOLY.
773
00:36:33,501 --> 00:36:35,735
ASK YOURSELVES,
ASK YOUR READERS,
774
00:36:35,837 --> 00:36:39,372
HOW MANY RAILROADS
DOES ONE MAN NEED?
775
00:36:39,474 --> 00:36:43,176
Ackerman: WHAT GOULD AND DREW
REALIZED AT THIS POINT
776
00:36:43,278 --> 00:36:47,146
WAS THAT FOR THIS TO BE SOLVED
ON THEIR TERMS,
777
00:36:47,249 --> 00:36:51,451
THEY NEEDED SOMEHOW TO OVERTURN
BARNARD'S INJUNCTIONS.
778
00:36:51,553 --> 00:36:53,286
AND THE ONLY WAY
THEY COULD DO THAT
779
00:36:53,388 --> 00:36:55,121
WAS TO GO
TO THE STATE LEGISLATURE.
780
00:36:55,223 --> 00:36:56,723
THAT WAS THE ONLY WAY
781
00:36:56,825 --> 00:37:00,493
THAT THEY COULD HAVE THEIR
WATERED SHARES MADE LEGAL,
782
00:37:00,595 --> 00:37:02,962
THEREFORE THE MONEY
THEY HAD TAKEN IN
783
00:37:03,064 --> 00:37:05,832
SELLING THEM TO VANDERBILT
WAS ALL LEGITIMATE.
784
00:37:05,934 --> 00:37:07,767
I'LL SEND YOU A CABLE
FROM ALBANY.
785
00:37:07,869 --> 00:37:08,868
MM. DO THAT.
786
00:37:08,970 --> 00:37:11,471
Narrator:
ENTERING NEW YORK AGAIN IS RISKY
787
00:37:11,573 --> 00:37:13,373
BECAUSE GOULD COULD BE ARRESTED.
788
00:37:13,475 --> 00:37:16,009
BUT REALIZING THEIR FATE
RESTS WITH THE LAW
789
00:37:16,111 --> 00:37:18,778
MAKING THEIR WATERED-DOWN STOCKS
VALID AGAIN,
790
00:37:18,880 --> 00:37:22,482
GOULD RISKS IT AND LEAVES
WITH A SUITCASE FULL OF CASH
791
00:37:22,584 --> 00:37:26,419
TO ENTICE LEGISLATORS
TO SEE THINGS HIS WAY.
792
00:37:29,591 --> 00:37:31,924
WHEN VANDERBILT
GETS WIND OF THIS,
793
00:37:32,027 --> 00:37:34,327
HE ALSO LOOKS TO ALBANY
FOR HELP.
794
00:37:34,429 --> 00:37:38,598
HE TURNS TO INFAMOUS POLITICAL
POWER BROKER BOSS TWEED.
795
00:37:38,700 --> 00:37:41,000
APPRECIATE
YOU COMING OUT TODAY.
796
00:37:41,102 --> 00:37:43,970
Gordon: BOSS TWEED
IS A VERY COMPLICATED CHARACTER.
797
00:37:44,072 --> 00:37:46,005
HE'S NOT THE EVIL POLITICIAN
798
00:37:46,107 --> 00:37:47,874
THAT MOST PEOPLE
MAKE HIM OUT TO BE.
799
00:37:47,976 --> 00:37:49,108
HE WAS CERTAINLY CROOKED.
800
00:37:49,210 --> 00:37:50,943
LISTEN, I HAVE
SOME IMPORTANT BUSINESS
801
00:37:51,046 --> 00:37:52,612
I WANT TO DISCUSS
WITH YOU TODAY.
802
00:37:52,714 --> 00:37:54,647
BOSS TWEED IS POWERFUL
IN NEW YORK CITY,
803
00:37:54,749 --> 00:37:57,483
BUT BOSS TWEED ALSO HAS
IMPORTANT CONNECTIONS TO ALBANY.
804
00:37:59,020 --> 00:38:01,321
IF VANDERBILT
CAN GET THE LEGISLATORS
805
00:38:01,423 --> 00:38:02,689
TO VOTE AGAINST A BILL
806
00:38:02,791 --> 00:38:04,857
LEGALIZING
THE WATERED-DOWN STOCK,
807
00:38:04,959 --> 00:38:09,062
HE'LL GET HIS MONEY BACK,
OWN THE MAJORITY OF ERIE STOCK,
808
00:38:09,164 --> 00:38:11,731
AND WIN CONTROL OF THE RAILROAD.
809
00:38:11,833 --> 00:38:14,701
I WANT YOU TO FIX THINGS
IN ALBANY.
810
00:38:14,803 --> 00:38:18,304
TAKE THIS, AND WHEN
THAT ERIE BILL COMES UP,
811
00:38:18,406 --> 00:38:21,374
MAKE SURE
IT DON'T PASS.
812
00:38:21,476 --> 00:38:24,444
THAT'S WHAT OLD FRIENDS
ARE FOR, CORNELIUS.
813
00:38:24,546 --> 00:38:29,415
IT'S CRUCIAL THAT VANDERBILT
HAVE BOSS TWEED IN HIS POCKET.
814
00:38:29,517 --> 00:38:31,017
I'M COUNTING ON YOU,
BOSS.
815
00:38:31,119 --> 00:38:32,485
YES, SIR.
816
00:38:32,587 --> 00:38:34,620
Gordon:
VANDERBILT WAS AN HONEST MAN,
817
00:38:34,723 --> 00:38:36,756
BUT HE HAD TO DEAL
WITH THE WORLD AS IT WAS,
818
00:38:36,858 --> 00:38:39,425
AND IF THE WAY TO GET SOMETHING
ENACTED IN NEW YORK STATE
819
00:38:39,527 --> 00:38:40,793
WAS TO BRIBE THE LEGISLATURE,
820
00:38:40,895 --> 00:38:42,962
WELL, HE WAS PERFECTLY HAPPY
TO BRIBE THE LEGISLATORS.
821
00:38:43,064 --> 00:38:44,197
HE DIDN'T CARE.
822
00:38:44,299 --> 00:38:46,199
Narrator:
THE FATE OF THE ERIE WAR
823
00:38:46,301 --> 00:38:50,603
IS NOW IN THE HANDS OF THE VERY
CORRUPT NEW YORK LEGISLATURE.
824
00:38:50,705 --> 00:38:54,040
[ TRAIN WHISTLE BLOWS ]
825
00:38:54,142 --> 00:38:56,709
Brokamp: IT WAS A MATTER
OF ALL INTERESTED PARTIES
826
00:38:56,811 --> 00:39:00,246
SENDING PEOPLE TO ALBANY
WITH THEIR SACKS OF MONEY
827
00:39:00,348 --> 00:39:04,016
TO TRY TO BUY THE VOTES AND
INFLUENCE ONE WAY OR THE OTHER.
828
00:39:04,119 --> 00:39:06,853
Narrator: GOULD BANKS
ON THE ERIE BILL PASSING
829
00:39:06,955 --> 00:39:10,022
SO THEY CAN ALL RETURN
TO NEW YORK CITY AS RICH MEN.
830
00:39:10,125 --> 00:39:11,891
PLEASE,
ACCEPT THIS CONTRIBUTION
831
00:39:11,993 --> 00:39:14,560
TO CONTINUE YOUR GOOD WORK
IN THE LEGISLATURE.
832
00:39:14,662 --> 00:39:16,662
ANY TIME, MY MAN.
833
00:39:18,633 --> 00:39:20,533
THANK YOU.
-THANK YOU.
834
00:39:20,635 --> 00:39:23,836
Gordon:
THE LEGISLATURE HAD APPARENTLY
BEEN HAVING A VERY POOR YEAR
835
00:39:23,938 --> 00:39:26,105
IN TERMS OF BRIBES,
AND SO THEY WERE DELIGHTED
836
00:39:26,207 --> 00:39:28,708
WITH THIS GOLDEN
ECONOMIC OPPORTUNITY
837
00:39:28,810 --> 00:39:30,143
TO ENRICH THEMSELVES.
838
00:39:30,245 --> 00:39:31,778
Gould:
THE OFFICERS OF THE ERIE
839
00:39:31,880 --> 00:39:34,247
WOULD LIKE TO GARNER YOUR
SUPPORT FOR UPCOMING VOTE.
840
00:39:34,349 --> 00:39:37,350
THE MONEY WAS FLOWING LIKE,
YOU KNOW, CHAMPAGNE.
841
00:39:38,853 --> 00:39:40,620
Narrator: GOULD AND TWEED
PLY THE SENATORS.
842
00:39:40,722 --> 00:39:41,654
TWEED.
843
00:39:41,756 --> 00:39:44,290
BUT TWEED HAS THE LAW
ON HIS SIDE.
844
00:39:44,392 --> 00:39:46,526
SHOULD YOU PREPARE
FOR A COURT DATE?
845
00:39:50,165 --> 00:39:53,900
GENTLEMEN, GENTLEMEN.
GENTLEMEN, GATHER AROUND.
846
00:39:54,002 --> 00:39:55,935
Gordon: VANDERBILT
HAD THE DEEPER POCKETS,
847
00:39:56,037 --> 00:39:58,638
BUT THE ERIE RAILWAY
HAD PLENTY OF CASH.
848
00:39:58,740 --> 00:40:00,940
I BRING THE COMMODORE'S
GOOD TIDINGS.
849
00:40:01,042 --> 00:40:03,309
SO THIS WAS A BATTLE OF TITANS.
850
00:40:03,411 --> 00:40:05,144
THEY WERE BOTH
HEAVYWEIGHT FIGHTERS.
851
00:40:05,246 --> 00:40:08,448
WOULD YOU TAKE $1,000
FOR YOU SUPPORT, SIR?
852
00:40:08,550 --> 00:40:09,615
VERY NICE. THANK YOU.
853
00:40:09,717 --> 00:40:11,417
Ackerman:
IT'S ESSENTIALLY AN EXERCISE
854
00:40:11,519 --> 00:40:14,353
TO BRIBE AN ENTIRE STATE
LEGISLATURE.
855
00:40:16,057 --> 00:40:17,890
THANK YOU.
856
00:40:17,992 --> 00:40:20,526
DREW, AT THIS POINT,
IS GETTING TIRED OF THE FIGHT,
857
00:40:20,628 --> 00:40:22,995
AND HE SNEAKS
BACK INTO NEW YORK CITY
858
00:40:23,097 --> 00:40:26,866
WITHOUT TELLING JAY GOULD
OR JIM FISK THAT HE'S DOING IT,
859
00:40:26,968 --> 00:40:29,902
AND HE SECRETLY SEES VANDERBILT.
860
00:40:31,306 --> 00:40:34,106
Narrator: VANDERBILT SENDS WORD
TO BOSS TWEED IN ALBANY
861
00:40:34,209 --> 00:40:36,142
TO STOP PAYMENTS.
862
00:40:36,244 --> 00:40:39,946
HE KNOWS THAT DANIEL DREW
WANTS TO MAKE A DEAL.
863
00:40:40,048 --> 00:40:42,748
HE KNOWS THAT DANIEL DREW
WANTS OUT OF THIS.
864
00:40:44,085 --> 00:40:48,187
GENTLEMEN, I'M SORRY TO SAY,
YOU'VE CLEANED ME OUT.
865
00:40:48,289 --> 00:40:49,789
[ SIGHS ]
866
00:40:49,891 --> 00:40:51,924
Ackerman: WITH THAT,
THE ALBANY LEGISLATURE
867
00:40:52,026 --> 00:40:56,095
PASSED THE LEGISLATION
101 IN FAVOR TO 6 AGAINST,
868
00:40:56,197 --> 00:40:59,499
PARTLY OUT OF RESENTMENT
AGAINST VANDERBILT
869
00:40:59,601 --> 00:41:01,767
FOR CUTTING OFF THEIR MONEY.
-GREAT.
870
00:41:01,870 --> 00:41:03,870
THANK YOU. THANK YOU.
871
00:41:03,972 --> 00:41:08,174
THIS WAS, ON ITS FACE, A VERY
GREAT VICTORY FOR JAY GOULD.
872
00:41:08,276 --> 00:41:11,944
TO THE ERIE,
AND TO YOUR VOTE.
873
00:41:16,484 --> 00:41:19,585
Narrator: BUT WHEN GOULD AND
FISK RETURN TO NEW YORK CITY,
874
00:41:19,687 --> 00:41:22,522
THEY'RE IN FOR A RUDE AWAKENING.
875
00:41:22,624 --> 00:41:24,257
Nelson:
THEY BARGE INTO THE MEETING
876
00:41:24,359 --> 00:41:27,093
AND DISCOVER THAT THERE
IS THE ENTIRE BOARD --
877
00:41:27,195 --> 00:41:28,494
THE REST OF THE BOARD.
878
00:41:28,596 --> 00:41:30,763
DREW, WHAT IS THIS?
879
00:41:30,865 --> 00:41:36,068
WELL, WE AND THE COMMODORE
HAVE COME TO AN UNDERSTANDING.
880
00:41:36,170 --> 00:41:39,639
THEY RECOGNIZE
THAT HOWEVER THIS COMES OUT,
881
00:41:39,741 --> 00:41:41,541
THEY HAVE JUST WON
A MAJOR VICTORY.
882
00:41:41,643 --> 00:41:46,646
HE'S OFFERED US
A GENEROUS SETTLEMENT.
883
00:41:46,748 --> 00:41:48,848
Nelson: HE DOES STILL HAVE
A SERIES OF INJUNCTIONS
884
00:41:48,950 --> 00:41:50,316
AGAINST DREW, GOULD, AND OTHERS
885
00:41:50,418 --> 00:41:52,985
THAT IS GONNA MAKE IT DIFFICULT
FOR THEM TO OPERATE IN NEW YORK.
886
00:41:53,087 --> 00:41:54,921
[ CHUCKLES ]
887
00:41:55,023 --> 00:41:58,524
THE WAR FOR THE ERIE --
IT'S OVER.
888
00:42:00,428 --> 00:42:03,396
Nelson: VANDERBILT, IN A WAY,
CAN DEMAND HIS TERMS.
889
00:42:03,498 --> 00:42:05,898
HE'LL GET HIS MONEY BACK
AT A RATE THAT THEY'LL AGREE ON.
890
00:42:06,000 --> 00:42:08,134
WHAT EXACTLY
ARE YOU OFFERING US?
891
00:42:08,236 --> 00:42:11,304
[ CHUCKLES ] THE ERIE.
892
00:42:11,406 --> 00:42:14,740
Nelson: THIS WILL ALLOW
GOULD, FISK, AND DREW
893
00:42:14,842 --> 00:42:17,109
TO CONTINUE OPERATING
ON THE STOCK EXCHANGE
894
00:42:17,245 --> 00:42:20,379
WITHOUT THE DANGERS
OF LAWSUITS AGAINST THEM.
895
00:42:20,481 --> 00:42:23,749
Narrator: SICK OF THE DISHONESTY
AND CORRUPTION,
896
00:42:23,851 --> 00:42:26,686
VANDERBILT GIVES UP HIS BID
FOR THE ERIE.
897
00:42:26,788 --> 00:42:30,823
YOU WANT IT,
IT'S ALL YOURS.
898
00:42:32,126 --> 00:42:35,061
GOULD AND FISK TAKE CONTROL
OF THE ERIE RAILROAD
899
00:42:35,163 --> 00:42:38,030
AS PRESIDENT AND TREASURER.
900
00:42:38,132 --> 00:42:41,734
IN THE END, DANIEL DREW
IS THE BIGGEST LOSER.
901
00:42:41,869 --> 00:42:46,238
Nelson:
THE ERIE WAR HAS BROKEN DREW IN
A WAY THAT IT HASN'T VANDERBILT.
902
00:42:46,341 --> 00:42:48,874
HIS SIGNIFICANCE, HIS POWER
ON THE STOCK EXCHANGE
903
00:42:48,977 --> 00:42:50,476
IS GONNA DECLINE RAPIDLY.
904
00:42:50,578 --> 00:42:53,613
Gordon: HIS DAY WAS THE
WALL STREET WITHOUT THE RULES.
905
00:42:53,715 --> 00:42:55,681
AND ONCE THE RULES
WERE IN PLACE,
906
00:42:55,783 --> 00:42:58,551
HE COULDN'T PLAY THE GAME,
REALLY, ANYMORE.
907
00:42:58,653 --> 00:43:03,589
Narrator: DREW GOES BANKRUPT
AND DIES A DECADE LATER.
908
00:43:03,691 --> 00:43:08,628
THE REAL WINNER IS WALL STREET'S
NEW ROBBER BARON, JAY GOULD.
909
00:43:08,730 --> 00:43:10,696
Gordon: EVERYBODY REALIZED
THAT JAY GOULD
910
00:43:10,798 --> 00:43:13,633
WAS A FORCE TO BE RECKONED WITH
ON WALL STREET AT THIS POINT.
911
00:43:13,735 --> 00:43:15,267
HIS STOCK WENT WAY UP.
912
00:43:15,370 --> 00:43:20,406
HE WAS WORTH ABOUT $56 MILLION
WHEN HE DIED IN 1893.
913
00:43:21,476 --> 00:43:24,844
Narrator: THINGS DID NOT END
WELL FOR HIS PARTNER FISK,
914
00:43:24,946 --> 00:43:29,682
WHO WAS MURDERED
IN A LOVE TRIANGLE IN 1872.
915
00:43:29,784 --> 00:43:33,185
CORNELIUS VANDERBILT
RECOUPS HIS MONEY.
916
00:43:33,287 --> 00:43:36,822
Nelson:
THE ERIE WAR HAS SMIRCHED
VANDERBILT'S REPUTATION,
917
00:43:36,924 --> 00:43:38,124
BUT NOT HIS FORTUNE.
918
00:43:38,226 --> 00:43:40,660
Narrator: WHILE HE NEVER WINS
CONTROL OF THE ERIE,
919
00:43:40,762 --> 00:43:44,063
HE EVENTUALLY BUILDS
AN IMPRESSIVE RAILROAD PORTFOLIO
920
00:43:44,165 --> 00:43:46,465
THAT ENSURES HIS LEGACY.
921
00:43:46,567 --> 00:43:49,068
Gordon: HE LEFT A FORTUNE
OF $105 MILLION.
922
00:43:49,170 --> 00:43:50,302
HE WAS ALMOST CERTAINLY
923
00:43:50,405 --> 00:43:52,471
THE RICHEST SELF-MADE MAN
IN THE WORLD.
924
00:43:56,844 --> 00:43:58,711
THE IMPORTANCE OF THE ERIE WARS
925
00:43:58,813 --> 00:44:02,548
WAS THAT WALL STREET REALIZED
IT HAD TO REFORM.
926
00:44:02,650 --> 00:44:05,618
Ackerman: THE NEW YORK
STOCK EXCHANGE ITSELF
927
00:44:05,720 --> 00:44:08,621
STARTED REQUIRING STOCK
TO BE REGISTERED...
928
00:44:08,723 --> 00:44:11,957
Gordon:
AND BECAME THE OVERWHELMINGLY
DOMINANT STOCK EXCHANGE
929
00:44:12,060 --> 00:44:14,427
IN NEW YORK, WHICH MEANT
IN THE UNITED STATES.
930
00:44:16,497 --> 00:44:19,865
Narrator: THE ERIE WAR LEAVES
VANDERBILT'S LEGACY INTACT,
931
00:44:19,967 --> 00:44:23,769
BUT IT TRANSFORMS THE WILD WEST
NATURE OF WALL STREET.
932
00:44:25,073 --> 00:44:28,107
IT LAYS THE GROUNDWORK
FOR CAPITALISM TO FLOURISH
933
00:44:28,209 --> 00:44:30,076
AND FOR AMERICA TO BECOME
934
00:44:30,178 --> 00:44:33,279
THE FINANCIAL SUPERPOWER
OF THE WORLD.