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."

[Picture: JAY GOULD.]

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.