Erie War

[3] Between 1866 and 1868, Daniel Drew conspired with James Fisk and Jay Gould, whom he brought on the board, to issue spurious Erie Railroad shares, thus "watering down" the stock, of which unsuspecting Cornelius Vanderbilt bought a large quantity.

[4] Vanderbilt lost more than $7 million in his attempt to gain control over Erie Railway Company, although Gould later returned most of the money under threat of litigation.

Tweed (who later died in prison for embezzlement and fraud), in return, arranged favorable state legislation in Albany for them, legalizing the newly issued shares.

In vain did his agents and lobbyists pour out stacks of money to buy legislative votes enough to defeat the bill legalizing Gould's fraudulent issue of stock.

After Fisk was murdered in 1872, Gould eventually gained the advantage in the conflict, but he had to relinquish control in 1872–73, following his loss of $1 million worth of Erie Railroad stock to the British confidence man Lord Gordon-Gordon.