Jan. 19, 1881: Facing a ferocious hostile takeover bid from railroad robber baron Jay Gould’s Atlantic and Pacific Telegraph Co., Western Union turns the tables and acquires Gould’s company. Gould, though, had his target right where he wanted it. He and his allies drive down Western Union’s stock price and grab control of the company by snapping up the devalued shares. Gould often used such ruthless tactics in his business dealings. For example, he gained control of several railroads after he borrowed the companies from his rivals, then “forgot” to return them. Eventually, of course, his enemies got wise to this approach and would tell Gould that they had to check whether they had any railroads left, then only pretend to look. Undeterred, Gould developed the diabolically effective “Stock Market Glitch” strategy, a gambit still used with great success today. —Jeffrey Kanige
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