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Back to #437 The Tycoons: Carnegie, Rockefeller, Gould & Morgan.

How Did Jay Gould Profit From Cornelius Vanderbilt's Cattle Rate?

David Senra, reading Charles R. Morris's The Tycoons, says Jay Gould made a fortune from Cornelius Vanderbilt's shipping losses after Vanderbilt cut cattle-shipping rates to a penny a head. Gould had already cornered the cattle market, so the steers filling Vanderbilt's trains were Gould's.

Gould and Vanderbilt each controlled a railroad and were fighting over the Erie. To steal traffic, an owner cuts prices. Some rivals might cut rates by 10% or 50%. In an Erie and New York Central cattle-shipping war, Vanderbilt slashed the rate to a penny a head and laughed as the trains filled with steers. The cheap haul turned Vanderbilt's losses into Gould's profit.

Plenty of people watered railroad stock and ran hostile takeovers without wanting to operate the railroad. Gould wanted to run the railroads, and he wanted to run the Erie.

Grokipedia·David Senra·Jay Gould

Transcript

#437 The Tycoons: Carnegie, Rockefeller, Gould & Morgan ·

Founders

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  1. How Were Carnegie, Rockefeller, Gould, and Morgan Different?David Senra, reading the preface of Charles R. Morris's The Tycoons, says Andrew Carnegie, John D.
  2. How Old Were Carnegie, Rockefeller, Gould, and Morgan When Lincoln Died?David Senra, reading Charles R.
  3. Why Did Andrew Carnegie Burn Stalled Railroad Cars?David Senra says Andrew Carnegie burned stalled railroad cars to clear the tracks.
  4. How Did John D. Rockefeller Buy the Clark Oil Refinery?David Senra, reading Charles R. Morris's The Tycoons, says John D.
  5. How Did Jay Gould Start With 50 Cents?David Senra says Jay Gould started with 50 cents.
  6. How Did John D. Rockefeller Beat Other Oil Refiners?David Senra says John D.
  7. What Made Andrew Carnegie's Steel Cheaper?David Senra says Andrew Carnegie's steel lost less than rival mills when prices had to fall, because the works with the newest equipment could cut prices and…
  8. Why Did John D. Rockefeller Buy the Strongest Refiners First?David Senra says John D. Rockefeller bought the strongest refiners first because taking the top few in a new territory made everyone else fall in line.

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