New York Central

Vanderbilt's penny-a-head cattle price war backfired against Gould's cornered market. Vanderbilt's New York Central cut cattle freight rates to a penny a head to hurt Gould's Erie. Gould had already cornered the cattle market, so he profited from Vanderbilt's shipping losses.

Vanderbilt was reportedly laughing as his trains filled with steers, until he learned what Gould had done. Gould was in his early 30s and a virtual unknown, up against the richest man in America, and still came out with the prize in the fight over the Erie. The lesson drawn is that Gould read the whole board instead of just matching price cuts.

Founders▶ 27:51