Chapter LVII
The time that Cowperwood spent in the Eastern Penitentiary of Pennsylvania was exactly thirteen months from the day of his entry to his discharge. The influences which brought about this result were partly of his willing, and partly not. For one thing, some six months after his incarceration, Edward Malia Butler died, expired sitting in his chair in his private office at his home. The conduct of Aileen had been a great strain on him. From the time Cowperwood had been sentenced, and more particularly after the time he had cried on Aileen’s shoulder in prison, she had turned on her father in an almost brutal way. Her attitude, unnatural for a child, was quite explicable as that of a tortured sweetheart. Cowperwood had told her that he thought Butler was using his influence to withhold a pardon for him, even though one were granted to Stener, whose life in prison he had been following with considerable interest; and this had enraged her beyond measure. She lost no chance of being practically insulting to her father, ignoring him on every occasion, refusing as often as possible to eat at the same table, and when she did, sitting next her mother in the place of Norah, with whom she managed to exchange. She refused to sing or play any more when he was present, and persistently ignored the large number of young political aspirants who came to the house, and whose presence in a way had been encouraged for her benefit. Old Butler realized, of course, what it was all about. He said nothing. He could not placate her.
Her mother and brothers did not understand it at all at first. (Mrs. Butler never understood.) But not long after Cowperwood’s incarceration Callum and Owen became aware of what the trouble was. Once, when Owen was coming away from a reception at one of the houses where his growing financial importance made him welcome, he heard one of two men whom he knew casually, say to the other, as they stood at the door adjusting their coats, “You saw where this fellow Cowperwood got four years, didn’t you?”
“Yes,” replied the other. “A clever devil that—wasn’t he? I knew that girl he was in with, too—you know who I mean. Miss Butler—wasn’t that her name?”
Owen was not sure that he had heard right. He did not get the connection until the other guest, opening the door and stepping out, remarked: “Well, old Butler got even, apparently. They say he sent him up.”
Owen’s brow clouded. A hard, contentious look came into his eyes. He had much of his father’s force. What in the devil were they talking about? What Miss Butler did they have in mind? Could this be Aileen or Norah, and how could Cowperwood come to be in with either of them? It could not possibly be Norah, he reflected; she was very much infatuated with a young man whom he knew, and was going to marry him. Aileen had been most friendly with the Cowperwoods, and had often spoken well of the financier. Could it be she? He could not believe it. He thought once of overtaking the two acquaintances and demanding to know what they meant, but when he came out on the step they were already some distance down the street and in the opposite direction from that in which he wished to go. He decided to ask his father about this.
On demand, old Butler confessed at once, but insisted that his son keep silent about it.
“I wish I’d have known,” said Owen, grimly. “I’d have shot the dirty dog.”
“Aisy, aisy,” said Butler. “Yer own life’s worth more than his, and ye’d only be draggin’ the rest of yer family in the dirt with him. He’s had somethin’ to pay him for his dirty trick, and he’ll have more. Just ye say nothin’ to no one. Wait. He’ll be wantin’ to get out in a year or two. Say nothin’ to her aither. Talkin’ won’t help there. She’ll come to her sinses when he’s been away long enough, I’m thinkin’.” Owen had tried to be civil to his sister after that, but since he was a stickler for social perfection and advancement, and so eager to get up in the world himself, he could not understand how she could possibly have done any such thing. He resented bitterly the stumbling-block she had put in his path. Now, among other things, his enemies would have this to throw in his face if they wanted to—and they would want to, trust life for that.
Callum reached his knowledge of the matter in quite another manner, but at about the same time. He was a member of an athletic club which had an attractive building in the city, and a fine country club, where he went occasionally to enjoy the swimming-pool and the Turkish bath connected with it. One of his friends approached him there in the billiard-room one evening and said, “Say, Butler, you know I’m a good friend of yours, don’t you?”
“Why, certainly, I know it,” replied Callum. “What’s the matter?”
“Well, you know,” said the young individual, whose name was Richard Pethick, looking at Callum with a look of almost strained affection, “I wouldn’t come to you with any story that I thought would hurt your feelings or that you oughtn’t to know about, but I do think you ought to know about this.” He pulled at a high white collar which was choking his neck.
“I know you wouldn’t, Pethick,” replied Callum; very much interested. “What is it? What’s the point?”
“Well, I don’t like to say anything,” replied Pethick, “but that fellow Hibbs is saying things around here about your sister.”
“What’s that?” exclaimed Callum, straightening up in the most dynamic way and bethinking him of the approved social procedure in all such cases. He should be very angry. He should demand and exact proper satisfaction in some form or other—by blows very likely if his honor had been in any way impugned. “What is it he says about my sister? What right has he to mention her name here, anyhow? He doesn’t know her.”
Pethick affected to be greatly concerned lest he cause trouble between Callum and Hibbs. He protested that he did not want to, when, in reality, he was dying to tell. At last he came out with, “Why, he’s circulated the yarn that your sister had something to do with this man Cowperwood, who was tried here recently, and that that’s why he’s just gone to prison.”
“What’s that?” exclaimed Callum, losing the make-believe of the unimportant, and taking on the serious mien of some one who feels desperately. “He says that, does he? Where is he? I want to see if he’ll say that to me.”
Some of the stern fighting ability of his father showed in his slender, rather refined young face.
“Now, Callum,” insisted Pethick, realizing the genuine storm he had raised, and being a little fearful of the result, “do be careful what you say. You mustn’t have a row in here. You know it’s against the rules. Besides he may be drunk. It’s just some foolish talk he’s heard, I’m sure. Now, for goodness’ sake, don’t get so excited.” Pethick, having evoked the storm, was not a little nervous as to its results in his own case. He, too, as well as Callum, himself as the tale-bearer, might now be involved.
But Callum by now was not so easily restrained. His face was quite pale, and he was moving toward the old English grill-room, where Hibbs happened to be, consuming a brandy-and-soda with a friend of about his own age. Callum entered and called him.
“Oh, Hibbs!” he said.
Hibbs, hearing his voice and seeing him in the door, arose and came over. He was an interesting youth of the collegiate type, educated at Princeton. He had heard the rumor concerning Aileen from various sources—other members of the club, for one—and had ventured to repeat it in Pethick’s presence.
“What’s that you were just saying about my sister?” asked Callum, grimly, looking Hibbs in the eye.
“Why—I—” hesitated Hibbs, who sensed trouble and was eager to avoid it. He was not exceptionally brave and looked it. His hair was straw-colored, his eyes blue, and his cheeks pink. “Why—nothing in particular. Who said I was talking about her?” He looked at Pethick, whom he knew to be the tale-bearer, and the latter exclaimed, excitedly:
“Now don’t you try to deny it, Hibbs. You know I heard you?”
“Well, what did I say?” asked Hibbs, defiantly.
“Well, what did you say?” interrupted Callum, grimly, transferring the conversation to himself. “That’s just what I want to know.”
“Why,” stammered Hibbs, nervously, “I don’t think I’ve said anything that anybody else hasn’t said. I just repeated that some one said that your sister had been very friendly with Mr. Cowperwood. I didn’t say any more than I have heard other people say around here.”
“Oh, you didn’t, did you?” exclaimed Callum, withdrawing his hand from his pocket and slapping Hibbs in the face. He repeated the blow with his left hand, fiercely. “Perhaps that’ll teach you to keep my sister’s name out of your mouth, you pup!”
Hibbs’s arms flew up. He was not without pugilistic training, and he struck back vigorously, striking Callum once in the chest and once in the neck. In an instant the two rooms of this suite were in an uproar. Tables and chairs were overturned by the energy of men attempting to get to the scene of action. The two combatants were quickly separated; sides were taken by the friends of each, excited explanations attempted and defied. Callum was examining the knuckles of his left hand, which were cut from the blow he had delivered. He maintained a gentlemanly calm. Hibbs, very much flustered and excited, insisted that he had been most unreasonably used. The idea of attacking him here. And, anyhow, as he maintained now, Pethick had been both eavesdropping and lying about him. Incidentally, the latter was protesting to others that he had done the only thing which an honorable friend could do. It was a nine days’ wonder in the club, and was only kept out of the newspapers by the most strenuous efforts on the part of the friends of both parties. Callum was so outraged on discovering that there was some foundation for the rumor at the club in a general rumor which prevailed that he tendered his resignation, and never went there again.
“I wish to heaven you hadn’t struck that fellow,” counseled Owen, when the incident was related to him. “It will only make more talk. She ought to leave this place; but she won’t. She’s struck on that fellow yet, and we can’t tell Norah and mother. We will never hear the last of this, you and I—believe me.”
“Damn it, she ought to be made to go,” exclaimed Callum.
“Well, she won’t,” replied Owen. “Father has tried making her, and she won’t go. Just let things stand. He’s in the penitentiary now, and that’s probably the end of him. The public seem to think that father put him there, and that’s something. Maybe we can persuade her to go after a while. I wish to God we had never had sight of that fellow. If ever he comes out, I’ve a good notion to kill him.”
“Oh, I wouldn’t do anything like that,” replied Callum. “It’s useless. It would only stir things up afresh. He’s done for, anyhow.”
They planned to urge Norah to marry as soon as possible. And as for their feelings toward Aileen, it was a very chilly atmosphere which Mrs. Butler contemplated from now on, much to her confusion, grief, and astonishment.
In this divided world it was that Butler eventually found himself, all at sea as to what to think or what to do. He had brooded so long now, for months, and as yet had found no solution. And finally, in a form of religious despair, sitting at his desk, in his business chair, he had collapsed—a weary and disconsolate man of seventy. A lesion of the left ventricle was the immediate physical cause, although brooding over Aileen was in part the mental one. His death could not have been laid to his grief over Aileen exactly, for he was a very large man—apoplectic and with sclerotic veins and arteries. For a great many years now he had taken very little exercise, and his digestion had been considerably impaired thereby. He was past seventy, and his time had been reached. They found him there the next morning, his hands folded in his lap, his head on his bosom, quite cold.
He was buried with honors out of St. Timothy’s Church, the funeral attended by a large body of politicians and city officials, who discussed secretly among themselves whether his grief over his daughter had anything to do with his end. All his good deeds were remembered, of course, and Mollenhauer and Simpson sent great floral emblems in remembrance. They were very sorry that he was gone, for they had been a cordial three. But gone he was, and that ended their interest in the matter. He left all of his property to his wife in one of the shortest wills ever recorded locally.
“I give and bequeath to my beloved wife, Norah, all my property of whatsoever kind to be disposed of as she may see fit.”
There was no misconstruing this. A private paper drawn secretly for her sometime before by Butler, explained how the property should be disposed of by her at her death. It was Butler’s real will masquerading as hers, and she would not have changed it for worlds; but he wanted her left in undisturbed possession of everything until she should die. Aileen’s originally assigned portion had never been changed. According to her father’s will, which no power under the sun could have made Mrs. Butler alter, she was left $250,000 to be paid at Mrs. Butler’s death. Neither this fact nor any of the others contained in the paper were communicated by Mrs. Butler, who retained it to be left as her will. Aileen often wondered, but never sought to know, what had been left her. Nothing she fancied—but felt that she could not help this.
Butler’s death led at once to a great change in the temper of the home. After the funeral the family settled down to a seemingly peaceful continuance of the old life; but it was a matter of seeming merely. The situation stood with Callum and Owen manifesting a certain degree of contempt for Aileen, which she, understanding, reciprocated. She was very haughty. Owen had plans of forcing her to leave after Butler’s death, but he finally asked himself what was the use. Mrs. Butler, who did not want to leave the old home, was very fond of Aileen, so therein lay a reason for letting her remain. Besides, any move to force her out would have entailed an explanation to her mother, which was not deemed advisable. Owen himself was interested in Caroline Mollenhauer, whom he hoped some day to marry—as much for her prospective wealth as for any other reason, though he was quite fond of her. In the January following Butler’s death, which occurred in August, Norah was married very quietly, and the following spring Callum embarked on a similar venture.
In the meanwhile, with Butler’s death, the control of the political situation had shifted considerably. A certain Tom Collins, formerly one of Butler’s henchmen, but latterly a power in the First, Second, Third, and Fourth Wards, where he had numerous saloons and control of other forms of vice, appeared as a claimant for political recognition. Mollenhauer and Simpson had to consult him, as he could make very uncertain the disposition of some hundred and fifteen thousand votes, a large number of which were fraudulent, but which fact did not modify their deadly character on occasion. Butler’s sons disappeared as possible political factors, and were compelled to confine themselves to the street-railway and contracting business. The pardon of Cowperwood and Stener, which Butler would have opposed, because by keeping Stener in he kept Cowperwood in, became a much easier matter. The scandal of the treasury defalcation was gradually dying down; the newspapers had ceased to refer to it in any way. Through Steger and Wingate, a large petition signed by all important financiers and brokers had been sent to the Governor pointing out that Cowperwood’s trial and conviction had been most unfair, and asking that he be pardoned. There was no need of any such effort, so far as Stener was concerned; whenever the time seemed ripe the politicians were quite ready to say to the Governor that he ought to let him go. It was only because Butler had opposed Cowperwood’s release that they had hesitated. It was really not possible to let out the one and ignore the other; and this petition, coupled with Butler’s death, cleared the way very nicely.
Nevertheless, nothing was done until the March following Butler’s death, when both Stener and Cowperwood had been incarcerated thirteen months—a length of time which seemed quite sufficient to appease the anger of the public at large. In this period Stener had undergone a considerable change physically and mentally. In spite of the fact that a number of the minor aldermen, who had profited in various ways by his largess, called to see him occasionally, and that he had been given, as it were, almost the liberty of the place, and that his family had not been allowed to suffer, nevertheless he realized that his political and social days were over. Somebody might now occasionally send him a basket of fruit and assure him that he would not be compelled to suffer much longer; but when he did get out, he knew that he had nothing to depend on save his experience as an insurance agent and real-estate dealer. That had been precarious enough in the days when he was trying to get some small political foothold. How would it be when he was known only as the man who had looted the treasury of five hundred thousand dollars and been sent to the penitentiary for five years? Who would lend him the money wherewith to get a little start, even so much as four or five thousand dollars? The people who were calling to pay their respects now and then, and to assure him that he had been badly treated? Never. All of them could honestly claim that they had not so much to spare. If he had good security to offer—yes; but if he had good security he would not need to go to them at all. The man who would have actually helped him if he had only known was Frank A. Cowperwood. Stener could have confessed his mistake, as Cowperwood saw it, and Cowperwood would have given him the money gladly, without any thought of return. But by his poor understanding of human nature, Stener considered that Cowperwood must be an enemy of his, and he would not have had either the courage or the business judgment to approach him.
During his incarceration Cowperwood had been slowly accumulating a little money through Wingate. He had paid Steger considerable sums from time to time, until that worthy finally decided that it would not be fair to take any more.
“If ever you get on your feet, Frank,” he said, “you can remember me if you want to, but I don’t think you’ll want to. It’s been nothing but lose, lose, lose for you through me. I’ll undertake this matter of getting that appeal to the Governor without any charge on my part. Anything I can do for you from now on is free gratis for nothing.”
“Oh, don’t talk nonsense, Harper,” replied Cowperwood. “I don’t know of anybody that could have done better with my case. Certainly there isn’t anybody that I would have trusted as much. I don’t like lawyers you know.”
“Yes—well,” said Steger, “they’ve got nothing on financiers, so we’ll call it even.” And they shook hands.
So when it was finally decided to pardon Stener, which was in the early part of March, 1873—Cowperwood’s pardon was necessarily but gingerly included. A delegation, consisting of Strobik, Harmon, and Winpenny, representing, as it was intended to appear, the unanimous wishes of the council and the city administration, and speaking for Mollenhauer and Simpson, who had given their consent, visited the Governor at Harrisburg and made the necessary formal representations which were intended to impress the public. At the same time, through the agency of Steger, Davison, and Walter Leigh, the appeal in behalf of Cowperwood was made. The Governor, who had had instructions beforehand from sources quite superior to this committee, was very solemn about the whole procedure. He would take the matter under advisement. He would look into the history of the crimes and the records of the two men. He could make no promises—he would see. But in ten days, after allowing the petitions to gather considerable dust in one of his pigeonholes and doing absolutely nothing toward investigating anything, he issued two separate pardons in writing. One, as a matter of courtesy, he gave into the hands of Messrs. Strobik, Harmon, and Winpenny, to bear personally to Mr. Stener, as they desired that he should. The other, on Steger’s request, he gave to him. The two committees which had called to receive them then departed; and the afternoon of that same day saw Strobik, Harmon, and Winpenny arrive in one group, and Steger, Wingate, and Walter Leigh in another, at the prison gate, but at different hours.
Chapter LVIII
This matter of the pardon of Cowperwood, the exact time of it, was kept a secret from him, though the fact that he was to be pardoned soon, or that he had a very excellent chance of being, had not been denied—rather had been made much of from time to time. Wingate had kept him accurately informed as to the progress being made, as had Steger; but when it was actually ascertained, from the Governor’s private secretary, that a certain day would see the pardon handed over to them, Steger, Wingate, and Walter Leigh had agreed between themselves that they would say nothing, taking Cowperwood by surprise. They even went so far—that is, Steger and Wingate did—as to indicate to Cowperwood that there was some hitch to the proceedings and that he might not now get out so soon. Cowperwood was somewhat depressed, but properly stoical; he assured himself that he could wait, and that he would be all right sometime. He was rather surprised therefore, one Friday afternoon, to see Wingate, Steger, and Leigh appear at his cell door, accompanied by Warden Desmas.
The warden was quite pleased to think that Cowperwood should finally be going out—he admired him so much—and decided to come along to the cell, to see how he would take his liberation. On the way Desmas commented on the fact that he had always been a model prisoner. “He kept a little garden out there in that yard of his,” he confided to Walter Leigh. “He had violets and pansies and geraniums out there, and they did very well, too.”
Leigh smiled. It was like Cowperwood to be industrious and tasteful, even in prison. Such a man could not be conquered. “A very remarkable man, that,” he remarked to Desmas.
“Very,” replied the warden. “You can tell that by looking at him.”
The four looked in through the barred door where he was working, without being observed, having come up quite silently.
“Hard at it, Frank?” asked Steger.
Cowperwood glanced over his shoulder and got up. He had been thinking, as always these days, of what he would do when he did get out.
“What is this,” he asked—“a political delegation?” He suspected something on the instant. All four smiled cheeringly, and Bonhag unlocked the door for the warden.
“Nothing very much, Frank,” replied Stager, gleefully, “only you’re a free man. You can gather up your traps and come right along, if you wish.”
Cowperwood surveyed his friends with a level gaze. He had not expected this so soon after what had been told him. He was not one to be very much interested in the practical joke or the surprise, but this pleased him—the sudden realization that he was free. Still, he had anticipated it so long that the charm of it had been discounted to a certain extent. He had been unhappy here, and he had not. The shame and humiliation of it, to begin with, had been much. Latterly, as he had become inured to it all, the sense of narrowness and humiliation had worn off. Only the consciousness of incarceration and delay irked him. Barring his intense desire for certain things—success and vindication, principally—he found that he could live in his narrow cell and be fairly comfortable. He had long since become used to the limy smell (used to defeat a more sickening one), and to the numerous rats which he quite regularly trapped. He had learned to take an interest in chair-caning, having become so proficient that he could seat twenty in a day if he chose, and in working in the little garden in spring, summer, and fall. Every evening he had studied the sky from his narrow yard, which resulted curiously in the gift in later years of a great reflecting telescope to a famous university. He had not looked upon himself as an ordinary prisoner, by any means—had not felt himself to be sufficiently punished if a real crime had been involved. From Bonhag he had learned the history of many criminals here incarcerated, from murderers up and down, and many had been pointed out to him from time to time. He had been escorted into the general yard by Bonhag, had seen the general food of the place being prepared, had heard of Stener’s modified life here, and so forth. It had finally struck him that it was not so bad, only that the delay to an individual like himself was wasteful. He could do so much now if he were out and did not have to fight court proceedings. Courts and jails! He shook his head when he thought of the waste involved in them.
“That’s all right,” he said, looking around him in an uncertain way. “I’m ready.”
He stepped out into the hall, with scarcely a farewell glance, and to Bonhag, who was grieving greatly over the loss of so profitable a customer, he said: “I wish you would see that some of these things are sent over to my house, Walter. You’re welcome to the chair, that clock, this mirror, those pictures—all of these things in fact, except my linen, razors, and so forth.”
The last little act of beneficence soothed Bonhag’s lacerated soul a little. They went out into the receiving overseer’s office, where Cowperwood laid aside his prison suit and the soft shirt with a considerable sense of relief. The clog shoes had long since been replaced by a better pair of his own. He put on the derby hat and gray overcoat he had worn the year before, on entering, and expressed himself as ready. At the entrance of the prison he turned and looked back—one last glance—at the iron door leading into the garden.
“You don’t regret leaving that, do you, Frank?” asked Steger, curiously.
“I do not,” replied Cowperwood. “It wasn’t that I was thinking of. It was just the appearance of it, that’s all.”
In another minute they were at the outer gate, where Cowperwood shook the warden finally by the hand. Then entering a carriage outside the large, impressive, Gothic entrance, the gates were locked behind them and they were driven away.
“Well, there’s an end of that, Frank,” observed Steger, gayly; “that will never bother you any more.”
“Yes,” replied Cowperwood. “It’s worse to see it coming than going.”
“It seems to me we ought to celebrate this occasion in some way,” observed Walter Leigh. “It won’t do just to take Frank home. Why don’t we all go down to Green’s? That’s a good idea.”
“I’d rather not, if you don’t mind,” replied Cowperwood, feelingly. “I’ll get together with you all, later. Just now I’d like to go home and change these clothes.”
He was thinking of Aileen and his children and his mother and father and of his whole future. Life was going to broaden out for him considerably from now on, he was sure of it. He had learned so much about taking care of himself in those thirteen months. He was going to see Aileen, and find how she felt about things in general, and then he was going to resume some such duties as he had had in his own concern, with Wingate & Co. He was going to secure a seat on ’change again, through his friends; and, to escape the effect of the prejudice of those who might not care to do business with an ex-convict, he was going to act as general outside man, and floor man on ’charge, for Wingate & Co. His practical control of that could not be publicly proved. Now for some important development in the market—some slump or something. He would show the world whether he was a failure or not.
They let him down in front of his wife’s little cottage, and he entered briskly in the gathering gloom.
On September 18, 1873, at twelve-fifteen of a brilliant autumn day, in the city of Philadelphia, one of the most startling financial tragedies that the world has ever seen had its commencement. The banking house of Jay Cooke & Co., the foremost financial organization of America, doing business at Number 114 South Third Street in Philadelphia, and with branches in New York, Washington, and London, closed its doors. Those who know anything about the financial crises of the United States know well the significance of the panic which followed. It is spoken of in all histories as the panic of 1873, and the widespread ruin and disaster which followed was practically unprecedented in American history.
At this time Cowperwood, once more a broker—ostensibly a broker’s agent—was doing business in South Third Street, and representing Wingate & Co. on ’change. During the six months which had elapsed since he had emerged from the Eastern Penitentiary he had been quietly resuming financial, if not social, relations with those who had known him before.
Furthermore, Wingate & Co. were prospering, and had been for some time, a fact which redounded to his credit with those who knew. Ostensibly he lived with his wife in a small house on North Twenty-first Street. In reality he occupied a bachelor apartment on North Fifteenth Street, to which Aileen occasionally repaired. The difference between himself and his wife had now become a matter of common knowledge in the family, and, although there were some faint efforts made to smooth the matter over, no good resulted. The difficulties of the past two years had so inured his parents to expect the untoward and exceptional that, astonishing as this was, it did not shock them so much as it would have years before. They were too much frightened by life to quarrel with its weird developments. They could only hope and pray for the best.
The Butler family, on the other hand, what there was of it, had become indifferent to Aileen’s conduct. She was ignored by her brothers and Norah, who now knew all; and her mother was so taken up with religious devotions and brooding contemplation of her loss that she was not as active in her observation of Aileen’s life as she might have been. Besides, Cowperwood and his mistress were more circumspect in their conduct than they had ever been before. Their movements were more carefully guarded, though the result was the same. Cowperwood was thinking of the West—of reaching some slight local standing here in Philadelphia, and then, with perhaps one hundred thousand dollars in capital, removing to the boundless prairies of which he had heard so much—Chicago, Fargo, Duluth, Sioux City, places then heralded in Philadelphia and the East as coming centers of great life—and taking Aileen with him. Although the problem of marriage with her was insoluble unless Mrs. Cowperwood should formally agree to give him up—a possibility which was not manifest at this time, neither he nor Aileen were deterred by that thought. They were going to build a future together—or so they thought, marriage or no marriage. The only thing which Cowperwood could see to do was to take Aileen away with him, and to trust to time and absence to modify his wife’s point of view.
This particular panic, which was destined to mark a notable change in Cowperwood’s career, was one of those peculiar things which spring naturally out of the optimism of the American people and the irrepressible progress of the country. It was the result, to be accurate, of the prestige and ambition of Jay Cooke, whose early training and subsequent success had all been acquired in Philadelphia, and who had since become the foremost financial figure of his day. It would be useless to attempt to trace here the rise of this man to distinction; it need only be said that by suggestions which he made and methods which he devised the Union government, in its darkest hours, was able to raise the money wherewith to continue the struggle against the South. After the Civil War this man, who had built up a tremendous banking business in Philadelphia, with great branches in New York and Washington, was at a loss for some time for some significant thing to do, some constructive work which would be worthy of his genius. The war was over; the only thing which remained was the finances of peace, and the greatest things in American financial enterprise were those related to the construction of transcontinental railway lines. The Union Pacific, authorized in 1860, was already building; the Northern Pacific and the Southern Pacific were already dreams in various pioneer minds. The great thing was to connect the Atlantic and the Pacific by steel, to bind up the territorially perfected and newly solidified Union, or to enter upon some vast project of mining, of which gold and silver were the most important. Actually railway-building was the most significant of all, and railroad stocks were far and away the most valuable and important on every exchange in America. Here in Philadelphia, New York Central, Rock Island, Wabash, Central Pacific, St. Paul, Hannibal & St. Joseph, Union Pacific, and Ohio & Mississippi were freely traded in. There were men who were getting rich and famous out of handling these things; and such towering figures as Cornelius Vanderbilt, Jay Gould, Daniel Drew, James Fish, and others in the East, and Fair, Crocker, W. R. Hearst, and Collis P. Huntington, in the West, were already raising their heads like vast mountains in connection with these enterprises. Among those who dreamed most ardently on this score was Jay Cooke, who without the wolfish cunning of a Gould or the practical knowledge of a Vanderbilt, was ambitious to thread the northern reaches of America with a band of steel which should be a permanent memorial to his name.
The project which fascinated him most was one that related to the development of the territory then lying almost unexplored between the extreme western shore of Lake Superior, where Duluth now stands, and that portion of the Pacific Ocean into which the Columbia River empties—the extreme northern one-third of the United States. Here, if a railroad were built, would spring up great cities and prosperous towns. There were, it was suspected, mines of various metals in the region of the Rockies which this railroad would traverse, and untold wealth to be reaped from the fertile corn and wheat lands. Products brought only so far east as Duluth could then be shipped to the Atlantic, via the Great Lakes and the Erie Canal, at a greatly reduced cost. It was a vision of empire, not unlike the Panama Canal project of the same period, and one that bade fair apparently to be as useful to humanity. It had aroused the interest and enthusiasm of Cooke. Because of the fact that the government had made a grant of vast areas of land on either side of the proposed track to the corporation that should seriously undertake it and complete it within a reasonable number of years, and because of the opportunity it gave him of remaining a distinguished public figure, he had eventually shouldered the project. It was open to many objections and criticisms; but the genius which had been sufficient to finance the Civil War was considered sufficient to finance the Northern Pacific Railroad. Cooke undertook it with the idea of being able to put the merits of the proposition before the people direct—not through the agency of any great financial corporation—and of selling to the butcher, the baker, and the candlestick-maker the stock or shares that he wished to dispose of.
It was a brilliant chance. His genius had worked out the sale of great government loans during the Civil War to the people direct in this fashion. Why not Northern Pacific certificates? For several years he conducted a pyrotechnic campaign, surveying the territory in question, organizing great railway-construction corps, building hundreds of miles of track under most trying conditions, and selling great blocks of his stock, on which interest of a certain percentage was guaranteed. If it had not been that he knew little of railroad-building, personally, and that the project was so vast that it could not well be encompassed by one man, even so great a man it might have proved successful, as under subsequent management it did. However, hard times, the war between France and Germany, which tied up European capital for the time being and made it indifferent to American projects, envy, calumny, a certain percentage of mismanagement, all conspired to wreck it. On September 18, 1873, at twelve-fifteen noon, Jay Cooke & Co. failed for approximately eight million dollars and the Northern Pacific for all that had been invested in it—some fifty million dollars more.
One can imagine what the result was—the most important financier and the most distinguished railway enterprise collapsing at one and the same time. “A financial thunderclap in a clear sky,” said the Philadelphia Press. “No one could have been more surprised,” said the Philadelphia Inquirer, “if snow had fallen amid the sunshine of a summer noon.” The public, which by Cooke’s previous tremendous success had been lulled into believing him invincible, could not understand it. It was beyond belief. Jay Cooke fail? Impossible, or anything connected with him. Nevertheless, he had failed; and the New York Stock Exchange, after witnessing a number of crashes immediately afterward, closed for eight days. The Lake Shore Railroad failed to pay a call-loan of one million seven hundred and fifty thousand dollars; and the Union Trust Company, allied to the Vanderbilt interests, closed its doors after withstanding a prolonged run. The National Trust Company of New York had eight hundred thousand dollars of government securities in its vaults, but not a dollar could be borrowed upon them; and it suspended. Suspicion was universal, rumor affected every one.
In Philadelphia, when the news reached the stock exchange, it came first in the form of a brief despatch addressed to the stock board from the New York Stock Exchange—“Rumor on street of failure of Jay Cooke & Co. Answer.” It was not believed, and so not replied to. Nothing was thought of it. The world of brokers paid scarcely any attention to it. Cowperwood, who had followed the fortunes of Jay Cooke & Co. with considerable suspicion of its president’s brilliant theory of vending his wares direct to the people—was perhaps the only one who had suspicions. He had once written a brilliant criticism to some inquirer, in which he had said that no enterprise of such magnitude as the Northern Pacific had ever before been entirely dependent upon one house, or rather upon one man, and that he did not like it. “I am not sure that the lands through which the road runs are so unparalleled in climate, soil, timber, minerals, etc., as Mr. Cooke and his friends would have us believe. Neither do I think that the road can at present, or for many years to come, earn the interest which its great issues of stock call for. There is great danger and risk there.” So when the notice was posted, he looked at it, wondering what the effect would be if by any chance Jay Cooke & Co. should fail.
He was not long in wonder. A second despatch posted on ’change read: “New York, September 18th. Jay Cooke & Co. have suspended.”
Cowperwood could not believe it. He was beside himself with the thought of a great opportunity. In company with every other broker, he hurried into Third Street and up to Number 114, where the famous old banking house was located, in order to be sure. Despite his natural dignity and reserve, he did not hesitate to run. If this were true, a great hour had struck. There would be wide-spread panic and disaster. There would be a terrific slump in prices of all stocks. He must be in the thick of it. Wingate must be on hand, and his two brothers. He must tell them how to sell and when and what to buy. His great hour had come!