What did Cornelius Vanderbilt and Jay Gould organize?
Rivalry with Jay Gould By 1873, he had extended the lines to Chicago, Illinois. Around this time Vanderbilt tried to gain control of the Erie Railroad, which brought him into direct conflict with Jay Gould, who was then in control of the Erie. Gould won the battle for control of the railroad by “watering down” its stock, which Vanderbilt bought in large amounts. Vanderbilt lost more than $7 million in his attempt to gain control, although Gould later returned most of the money. Vanderbilt was very accustomed to getting what he wanted, but it seems that he met his match in Jay Gould. Vanderbilt would later say of his loss “never kick a skunk”. In fact this was not the last time that Gould would serve to challenge a Vanderbilt. Years after his father’s death, William Vanderbilt gained control of the Western Union Telegraph company. Jay Gould then started the American Telegraph Company and nearly forced Western Union out of business. William Vanderbilt then had no choice but to buy out Go
