About this time, some capitalists in Boston were desirous of purchasing the Stonington line of steamboats, then owned by Daniel Drew. Fisk became aware of their desire, and, coming to New York, in 1863, obtained an introduction to Daniel Drew, and so won the favor and confidence of that gentleman that he was employed by him to manage the negotiation for the sale of the steamers, which he did to Mr. Drew’s entire satisfaction. From that time, Drew became his friend, and soon gained him a position in Wall street.
Upon entering the street, Fisk began a series of speculations on his own account, and, in the short space of two years, he lost all his money. It is said that he swore a mighty oath that as Wall street had ruined him, Wall street should pay for it. Daniel Drew now came to his aid, and, in 1865, helped him to form the firm of Fisk, Belden & Co., stock-brokers, and assisted the new house by employing them as his brokers in many of his heaviest transactions.
In 1867 occurred the great struggle between Drew and Vanderbilt for the possession of the Erie Railway. James Fisk and Jay Gould now made their appearance as Directors in the Erie Railway. The following is the New York Tribune’s account of this affair:
“When the crisis came, on the eve of the election for Directors, in October, 1867, there were three contestants in the field. Fisk was serving under the Drew party, who wanted to be retained in office. Vanderbilt, master of Harlem, Hudson River, and Central, seemed to be on the point of securing Erie also. Eldridge was the leader of the Boston, Hartford, and Erie
party, which wanted to get into the Erie Directory for the purpose of making that Company guarantee the bonds of their own worthless road. Eldridge was assisted by Gould. As a result of the compromise by which the three opposing interests coalesced, Fisk and Gould were both chosen Directors of Erie, and from the month of October, 1867, dates the memorable association of these two choice spirits since so famous in the money markets of the world. They were not the counterparts, but the complements of each other. Fisk was bold, unscrupulous, dashing, enterprising, ready in execution, powerful in his influence over the lower and more sensual order of men. Gould was artful, reticent, long-headed, clear of brain, fertile of invention, tenacious of purpose, and no more burdened with unnecessary scruples than his more noisy and flashy companion. They were not long in joining fortunes. At the time of the famous Erie corner, the next March, they were ostensibly working on opposite sides, Gould acting for Vanderbilt, and Fisk being the man to whom Drew intrusted 50,000 shares of new stock, secretly issued, to be used when Vanderbilt’s brokers began to buy. The mysteries of that transaction are fully known only to a few of the principal actors. An injuction of Judge Barnard’s had forbidden Drew or anybody connected with the road to manufacture any more stock by the issue of convertible bonds. But Drew was ‘short’ of Erie; the Vanderbilt pool threatened ruin; and stock must be had. The new certificates had already been made out in the name of James Fisk, jr., and were in the hands of the Secretary who was enjoined from issuing them. Mr. Fisk saw a way out of the difficulty. The Secretary gave the certificate books to an employé of the road, with directions to carry them carefully to the transfer office. The messenger returned in a moment empty-handed, and told the astonished Secretary that Mr. Fisk had met him at the door, taken the books, and ‘run away with them!’ On the same day the convertible bonds corresponding to these certificates were placed on the Secretary’s desk, and as soon as Vanderbilt had forced up the price of Erie, Fisk’s new shares were thrown upon the market, and bought by Vanderbilt’s agents before their origin
was suspected. Mr. Fisk unfortunately had not yet cultivated the intimate relations with Judge Barnard which he subsequently sustained. When the Drew party applied for an order from Judge Gilbert in Brooklyn, enjoining Barnard’s injunctions, the petitioner who accused that ornament of the New York bench of a corrupt conspiracy to speculate in Erie stock, was none other than Fisk’s partner, Mr. Belden. The next morning Barnard issued an order of arrest for contempt, and Fisk, with the whole Erie Directory, fled to Jersey City, carrying $7,000,000 of money and the books and papers of the Company. Among the most valuable of the assets transferred on that occasion to Taylor’s Hotel was Miss Helen Josephine Mansfield. ‘I went to Jersey,’ testified this fair creature some weeks ago, in the suit which has just come to so tragical a termination, ‘with the officers of the Erie Company, and the railroad paid all the expense.’ Mr. Fisk could afford to amuse himself. He had made fifty or sixty thousand dollars by his day’s work in Broad street, and he had the satisfaction of knowing that he had not only beaten Vanderbilt and Barnard, but outwitted even his particular friend and patron, Mr. Drew. He had now practically the greater share of the management on his shoulders, though in name he was only Controller. He softened public indignation by subsidizing a gang of ruffians, ostensibly in the Vanderbilt interest, to besiege ‘Fort Taylor,’ as if for the purpose of kidnapping the Directors, and organizing a band of railway hands to mount guard about the hotel. He dogged the steps of Mr. Drew, who was stealing over to New York by night to make a secret compromise for himself alone with Mr. Vanderbilt, and when Drew carried off the funds of the Company, Fisk compelled him to bring them back by putting an attachment on his money in bank. A bill was now introduced at Albany to legalize Drew’s over-issue of stock. It was defeated. Mr. Gould visited the capital with half a million dollars, and came back without a cent, and the bill which three weeks before had been rejected by a vote of 83 to 32 was carried by a vote of 101 to 6. This was followed by a general suspension of hostilities. The scandalous network of injunctions had
become so intricate that one general order was obtained sweeping it all away. Judge Barnard was placated in some manner not made public. Mr. Peter B. Sweeny, who, as the representative of Tammany, had been appointed ‘Receiver’ of the property of the railway company after it had been carried out of reach, was allowed $150,000 for his trouble of taking care of nothing; and the exiles returned to New York. In one of his characteristic fits of frankness, James Fisk afterward on the witness stand described the settlement which ensued as an ‘almighty robbery.’ The Directors of Erie took 50,000 shares of stock off Vanderbilt’s shoulders at 70, and gave him $1,000,000 besides. Eldridge got $4,000,000 of Erie acceptances in exchange for $5,000,000 of Boston, Hartford, and Erie, which became bankrupt very soon afterward. Drew kept all he had made, but was to pay $540,000 into the Erie treasury and stand acquitted of all claims the corporation might have against him. Nearly half a million more was required to pay the lawyers and discontinue the suits. Fisk, getting nothing personally, stood out against the arrangement until the conspirators consented to give him—the Erie Railroad! Drew and some others were to resign, and Fisk and Gould to take possession of the property.”
Out of his first operations in Erie stock, Fisk is said to have made $1,300,000. The Legislature of New York legalized his acts, through the influence, it is said, of Mr. William M. Tweed. It is certain that this act was followed by the entrance of Tweed and Sweeny into the Board of Directors.