Fifty years in Wall Street
his way, and his own smartness for turning them to the best account.
I have taken Mr. Tilden up and devoted to his extraordinary career a few
pages, from personal reminiscences, in this book, owing to the fact that
he was identified with a number of railroads in the way which I have
indicated above. His position in this respect naturally classifies him
with some of our most prominent Wall Street speculators, investors and
operators, and he thus naturally falls within the scope of the main
subject of this book.
Mr. Tilden, in his will, ordered that if the will should be contested by
any of the beneficiaries each and all of the contesting parties should
be disinherited.
In spite of this prohibition, George H. and Samuel J. Tilden, sons of
Henry A. Tilden, and nephews of the testator, contested the validity of
the instrument, not on the ground of incapacity or undue influence, but
upon construction.
Henry L. Clinton and Aaron Vanderpoel were the lawyers for the
contestants.
It is curious that the will of a man so deeply learned in the law as Mr.
Tilden was, should be questioned as to whether it was a legal document
or not. But such was the ground of the contest. The point was this: The
residuary clause empowers the trustees to apply to the Legislature for
an act to incorporate a body to be called the Tilden Trust. This body,
when incorporated, was to become the legatee. This method of procedure,
according to the opinion of learned counsel in the law, bequeathed to
the trustee under the will the power to name the public legatee of the
testator. It seems that a testator has no power to do this, according to
the recent decisions of the Courts of last resort in this country,
which, it would seem, Mr. Tilden had not read. Nobody but the testator
himself has power to name the legatee. It appears he had the decision of
the English Court in his mind, which allows of this method of
bequeathing property. Following is the residuary clause in full, bearing
upon this point: “I request my said executors and trustees to obtain, as
speedily as possible, from the Legislature an act of incorporation of an
institution to be known as the Tilden Trust, with capacity to establish
and maintain a free library and reading-room in the city of New York,
and to promote such scientific and educational objects as my said
executors and trustees may more particularly designate. Such corporation
shall have not less than five trustees, with power to fill vacancies in
their number, and in case said institution shall be incorporated in a
form and manner satisfactory to my said executors and trustees during
the lifetime of the survivor of the two lives in being, upon which the
trust of my general estate herein created is limited, to wit, the lives
of Ruby S. Tilden and Susie Whittlesey, I hereby authorize my said
executors and trustees to organize the said corporation, designate the
first trustees thereof, and to convey to or apply to the use of the same
the rest, residue and remainder of all my real and personal estate not
specifically disposed of by this instrument, or so much thereof as they
may deem expedient, but subject, nevertheless, to the special trusts
herein directed to be constituted for particular persons, and to the
obligations to make and keep good the said special trusts, provided that
the said corporation shall be authorized by law to assume such
obligation. But in case such institution shall not be so incorporated
during the lifetime of the survivors of the said Ruby S. Tilden and
Susie Whittlesey, or if for any cause or reason my said executors shall
deem it expedient to convey said rest, residue and remainder, or any
part thereof, or to apply the same, or any part thereof, to the said
institution, I authorize my said executors and trustees to apply the
rest, residue and remainder of my properly, real and personal, after
making good the said special trusts herein directed to be constituted,
or such portion thereof as they may not deem it expedient to apply to
its use to such charitable, educational and scientific purposes, as in
the judgment of my said executors and trustees will render the said
rest, residue and remainder of my property most widely and substantially
beneficial to the interests of mankind.”
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CHAPTER XXXIV.
COMMODORE VANDERBILT.
—HOW HIS MAMMOTH FORTUNE WAS ACCUMULATED.
FERRYMAN.—STEAMBOAT OWNER.—RUNS A GREAT COMMERCIAL FLEET.—THE FIRST AND
GREATEST OF RAILROAD KINGS.—THE HARLEM “CORNER.”—REORGANIZATION OF
N. Y. CENTRAL.—HOW HE MILKED HIS CO-SPECULATORS.—HIS FORTUNE.—ITS
VAST INCREASE BY WM. H.
The most conspicuous man connected with Wall Street in my early days of
speculation was “Commodore” Vanderbilt. Without going minutely into the
early exploits of the man, it will be sufficient, for the purposes of
this narrative, that I trace his start in life in connection with a
row-boat of which he was Captain, plying between Staten Island,
Governor’s Island, and New York, in which he himself did the rowing.
This enterprise, in course of time, grew into one with boats propelled
by steam, instead of manual labor. During his progress as ferryman he
became proprietor of a hotel at New Brunswick, New Jersey. This side
issue did not prove very lucrative, perhaps, because the Commodore, with
all his versatile ability, did not possess the special talents required
to keep a hotel. The hotel still exists, and is situated near the
railroad station, and is now, as it was then, merely a railroad tavern.
The first vivid recollection of the Commodore in Wall Street “dickering”
was in connection with the Nicaragua Transit Company, the capital of
which was over $4,000,000. He became President of the Company, and soon
afterward the head and front of the whole enterprise. The Directors and
stockholders, and in fact every one else connected with the Company,
were soon crushed into nonentities. When their complete subjection was
obtained, the Commodore loomed up into gigantic dimensions, and, as he
expanded, the Nicaragua Company became small by degrees and beautifully
less in inverse proportion. Eventually the greatly depressed
stockholders, like the worm when trodden under foot, turned and showed
resentment. The case came into Court and was the subject of ordinary
investigation, but I never heard of the Company recovering anything. I
presume their claims were relegated to the profit and loss account in
perpetuity.
After this, the Commodore started a line of steamers in opposition to
the fleet of Pacific Mail, and kept his boats running until he was
bought off. About this time an event happened which has preserved for
posterity a good story, highly characteristic of the Commodore. His
son-in-law, James M. Cross, had conceived the idea of embarking in the
wholesale leather business in the “Swamp.” He had been talked into it by
an experienced man who was to be his partner. A store was secured, and
everything put under way for the start, with the exception of the
capital, which Mr. Cross had agreed to contribute against the experience
of his partner. The amount was to be $50,000. Mr. Cross, knowing that
the Commodore had at this time become rich and prosperous, felt
satisfied that it was only necessary to make application to his
enterprising father-in-law for the amount required. Thereupon, with the
confidence begotten of implicit trust, he approached the Commodore for
this temporary accommodation, giving him a full description of the
nature of the business. After listening attentively to the statement of
his esteemed son-in-law, the Commodore said in reply: “Now, James, if I
let you have this $50,000 to put in the leather business, how much do
you think you will be able to make for your share out of the profits?”
Mr. Cross thought the best position to take with a rigid business man
like his father-in-law was to be prudently conservative in his
expectations, and to keep all his Colonel Seller prospects in the
background. After a few moments reflection he replied: “I believe I am
almost certain to make $5,000 a year.” The Commodore promptly responded:
“James, as I can do better than that myself in handling $50,000, I will
give you $5,000 a year hereafter, and you may consider yourself in my
employ at that salary.” There was no way for James to wriggle out of it,
and he accepted the situation with apparent good grace, whatever his
internal emotions may have been at the time. The Commodore forthwith
dispatched Mr. Cross to San Francisco to manage his steamboat business
there. He soon discovered, however, that James was hardly aggressive
enough for the go-ahead fellows on the gold coast, and he was recalled.
After looking around some time for a man possessing the necessary
requirements to be placed in successful competition with the adventurous
spirits of the Pacific Slope, his search was rewarded by an introduction
to Commodore C. K. Garrison, then in command of a Mississippi steamboat.
Garrison had established his reputation for being the best euchre player
on the river, and for much besides which that term implies. He was brave
and fearless—in fact, in some respects, a Jim Bludso of real life, with
the self-sacrificing qualities of that hero largely discounted, or
perhaps entirely left out. It required men of mettle in those days to
run a steamboat on the Father of Waters, when the greater portion of the
passengers belonged to the gambling fraternity, and were all experts
with the bowie knife and the ready revolver.
The Commodore had an interview with Garrison, which resulted in an
engagement, and he was sent to San Francisco as the Commodore’s agent.
It was soon found that he was the man for the Wild West, and he was not
slow to appreciate his own value and importance to the increasing
fortunes of his employer. He struck very often for higher wages, and was
always able to command his price. He rose, from one advance to another,
until his salary at that day had reached the marvellous figure of
$60,000 a year. Numerous stories of Garrison’s fabulous prosperity on
the Pacific Coast reached this city and the ears of the Commodore, and
his fame began to penetrate farther than the name of the latter had ever
been heard. These accounts had their effect on a mind so naturally
envious as that of the Commodore. He began to realize the humiliating
fact that, instead of Garrison being in his employ, the former captain
of the Mississippi steamboat had him in tow, and was everywhere regarded
as the Boss, while Vanderbilt was simply supposed to be his Eastern
agent. This brought matters to the point where patience ceased to be a
virtue, and the connection was severed. Soon after this the Commodore
sold out to the Pacific Mail Company, which again became a monopoly, and
as the fight had been a losing one to him, he was obliged to find other
waters for his boats.
Since his advent with a common row boat on the waters of our own
handsome bay, thence through the gradations of ferry boats and
steamboats, nothing but unremitting success had attended his ventures,
until his unequal struggle in competition with Pacific Mail. He appeared
to have met his Trafalgar when he encountered that fleet. His
dissociation with Garrison seemed for a time to forebode disaster. He
gathered himself up temporarily again, but never took to the waters so
kindly afterwards. He began to feel that his financial destiny was
verging towards a firmer foundation. His last boat was the famous
steamship Vanderbilt, which was recognized at the time as one of the
finest ships to be found on any sea. He made a present of her to the