American History Tellers - The Gilded Age | Carnival of Corruption | 1

Episode Date: July 22, 2020

In 1869, America connected its vast, sprawling territory with its most ambitious project to date: the transcontinental railroad. The country had just emerged from the ashes of the Civil War, and the railroad galvanized people from coast to coast, offering opportunity and promise. But corruption soon cast a pall over the nation.Scandal after scandal tainted the presidency of Ulysses S. Grant. A pair of unscrupulous investors schemed to drive up the price of gold, unleashing chaos from Wall Street to the nation’s farms. Prominent congressmen funneled public money into a sham corporation to profit off the railroad. And government agents conspired with whiskey distillers to defraud the Treasury of millions.It was the dawn of the Gilded Age—an era of dramatic material progress and sordid greed and corruption.Listen ad-free on Wondery+ hereSupport us by supporting our sponsors!See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Wondery Plus subscribers can binge new seasons of American History Tellers early and ad-free right now. Join Wondery Plus in the Wondery app or on Apple Podcasts. Imagine it's August 1868. You're a Republican congressman traveling south from your home state of Massachusetts back to Washington. As the train lurches into motion, you scan the landscape. Small shops and homes slowly give way to farmland. You turn to face your colleague sitting across from you. You know, I can't wait till this whole country's connected by rail.

We're getting there, but there's still so much to do. You heard the latest reports from the Union Pacific? You know, I can't wait till this whole country's connected by rail. We're getting there, but there's still so much to do. You heard the latest reports from the Union Pacific? Mm, yeah, I hear construction is falling behind. They're short on cash. Yeah, that's true. That's why I want to talk to you about a little proposal of mine. Your colleague chuckles.

Always a proposal up your sleeve, isn't there? All right, what is it? Well, you might have heard that a select handful of our colleagues have already signed on to this venture. I'm prepared to get you a piece of the action. Your colleague narrows his gaze. I might have heard. What have you in mind? You look around the rail car to make sure no one is eavesdropping. I'm prepared to sell you shares in Credit Mobilier in exchange for your vote on the next railroad appropriations bill. Oh, this, yes. I've heard all about this scam of yours. It's not a scam. It's a sweetheart deal. These shares are well below market value. Your colleague looks dubious. You need to make him understand what's at stake. Look, I'm working around the clock to finish the railroad. This is America's biggest undertaking

yet. We're penetrating this continent's vast distance, bringing the East to the West, opening up trade with Asia. And well, as construction ramps up, the need for money just grows and grows. You mean your need for money. You lean in and lower your voice again as passengers gather their things. Don't tell me you have an ethical problem with this. You know me better than that. I'm no Puritan. I'm just not sure it's a sound investment. Oh, it's sound. And this is how things get done. We have an opportunity to make a real contribution to this country for all Americans, including us. We're Americans, right? What's wrong with benefiting two? Just a perk of the job. He turns his head to stare out the window,

considering the matter. All right, lay out some numbers. I will. As you pull out your case to retrieve some documents, you can't help but grin. Your plan is working. So what if you skim some money off the top? You're bringing progress to America.

Nothing will stop progress. Surprising origin stories of the products you're obsessed with. Listen to The Best Idea Yet on the Wondery app or wherever you get your podcasts. Now streaming. Welcome to Buy It Now, where aspiring entrepreneurs get 90 seconds to pitch to an audience of potential customers. If the audience liked the product, it gets them in front of our panel of experts. Gwyneth Paltrow. Anthony Anderson. Tabitha Brown. Tony Hawk.

Oh, my God. Buy It Now. Stream free on Freebie and Prime Video. From Wondery, I'm Lindsey Graham, and this is American History Tellers. Our history. Your story. In our show, we'll take you to the events, the times, and the people that shaped America and Americans, our values, our struggles, and our dreams. We'll put you in the shoes of everyday citizens as history was being made, and we'll show you how the events of the times affected them, their families, and affects you now. In May 1869, Americans celebrated the completion of the Transcontinental Railroad,

a monument to progress and national unity after an agonizing civil war. But the era's greatest achievement had a sordid undercurrent. The railroad was built on the back of corporate and political corruption, an unfortunate hallmark of the three decades that followed the Civil War. As the nation prepared to enter its second century, Mark Twain, one of America's riotous observers, dubbed the era the Gilded Age, beneath the country's glittering surface, a rotten core of corruption and greed. This Gilded Age saw dramatic population growth and dazzling technological change. But as America reached new heights of material success, a vast gulf opened between the rich and the poor.

Millionaires flaunted their wealth with magnificent mansions, while the working class eked out a living and grinding poverty. Violent labor conflicts and explosive racial turmoil swept the nation. In this series, we'll explore how the Gilded Age helped usher in modern America. The era sparked fierce debates about the role of money in politics, the distribution of wealth, and the rights of working people. The glaring contradictions left Americans grappling with whether the nation was living up to its greatest potential or betraying its founding ideals. This is Episode 1, Carnival of Corruption. On March 4, 1869, a cold rain fell on the nation's capital as Ulysses S. Grant took

the oath of office, becoming America's 18th president. Grant had led the Union to victory during the Civil War as commanding general of the U.S. Army. The popular and plain-spoken war hero was swept into the White House on the Republican ticket after campaigning on the slogan, Let Us Have Peace. But as large as his reputation loomed on the battlefield, in the halls of political power, he was often an unimposing figure. Shy and reserved, he could usually be found in a wrinkled jacket, silently puffing away on the stump of a cigar. Grant was an extraordinary general, but he was utterly lacking in political judgment or skill. He had never held public office before, and his naivete would come to haunt his administration.

Once in office, Grant staffed his cabinet with ineffective and corrupt insiders, to whom he was fiercely loyal. Scandals roiled Congress from the beginning, but Grant managed to stay above the fray. But soon, however, a conspiracy touching the U.S. Treasury and Grant's own family would taint his presidency. It all started with a plot hatched by a pair of unscrupulous millionaires in the summer of 1869, just months after Grant was sworn in as president. Jay Gould and James Fisk were unlikely partners in crime.

Gould was a secretive and fidgety financial genius, notorious for his backroom business deals. He was ruthless on Wall Street, but at home Gould was a devoted family man. He abstained from alcohol and spent his free time tending to his prized orchid collection, housed on the roof of his Manhattan mansion. Fisk, on the other hand, was a brash showman. At age 15, he'd run away from home to join the circus before becoming a traveling salesman. He made his fortune during the Civil War, smuggling contraband Southern cotton

across Union lines to Northern mills. Known to many as Jubilee Jim or Diamond Jim, Fisk sported a large diamond pin and carefully waxed mustache as he went about his financial wheeling and dealing. Gould and Fisk first met in 1867 as board members for the Erie Railroad, the company that built the tracks connecting New York City to Lake Erie. The Erie was controlled by the company's majority stockholder, Cornelius Vanderbilt, but Gould and Fisk saw an opportunity to wrest control from his grasp. They joined forces to dilute Vanderbilt's shares by issuing fraudulent stock. To legitimize their scheme, they paid hefty bribes to New York state legislators.

The scam worked, and the pair seized control of the railroad. Then, in 1869, Gould and Fiske partnered up again, this time for a far more audacious plot, a plan to corner the market for gold. Before the Civil War, U.S. currency was backed by gold. But once the war started, the Treasury flooded the economy with paper cash, or greenbacks, to finance the Union war effort. But international trade was still conducted only in gold, so exchanging greenbacks for precious metal was essential to commerce. Merchants and investors even traded paper for gold in a special gold room next door to the New York Stock Exchange. In this volatile gold market, Gould and Fisk saw an opportunity.

Even though tens of millions of dollars were traded in the gold room every day, there was only about 20 million of actual gold in circulation at any given moment. The two men realized that if they hoarded enough gold, they could create an artificial shortage, inflate the price, and sell their supply at a massive profit. But there was a potential roadblock. The U.S. government had gold reserves, too. And the Grant administration announced plans to soon start selling government gold to pay off the national debt. For their plan to succeed, Gould and Fisk needed to somehow convince Grant to hold on to the government reserves. The less gold in

circulation, the more valuable their gold would be. Gould and Fisk would need Washington insiders, men who knew the workings of Capitol Hill and the White House. They began with a speculator named Abel Corbin, who happened to be the new husband of Grant's sister. In May 1869, Gould visited Corbin's Manhattan brownstone and promised to give him $1.5 million in gold in exchange for his help. Corbin came on board. He used his proximity to Grant to appoint General Daniel Butterfield as Assistant Secretary of the Treasury. With Butterfield in place, Gould and Fisk, and now Corbyn,

would know if the government was going to sell its gold. They then offered Butterfield another $1.5 million piece of the action for his part in the scheme. Soon, all pieces were in place. Fisk enlisted a small army of brokers to do the dirty work. And through September of that year, Gould and Fisk quietly bought up a massive amount of gold via a network of brokers, sending the price soaring. But the ever-trusting Grant finally grew suspicious.

He wondered why his new brother-in-law was suddenly so interested in the gold market. He got his wife to pen a letter to his sister, urging Corbin to back off, and he decided it was finally time to intervene in the market himself. To break the bubble, Grant directed the Treasury to sell $4 million in government gold. Per their agreement, Butterfield and Corbin tip-gouled off to the impending move. But the cagey ghoul didn't tell his business partner, Fisk. Instead, he unloaded only his own stockpile of gold. When the market opened on Friday, September 24th, the price of gold was at an all-time high.

And Fisk was still buying. Imagine it's late in the morning on Friday, September 24th, 1869. You're the chief broker for Jim Fisk, and you're in the gold room in Lower Manhattan. At the center of the packed room is a bronze statue of Cupid with a dolphin in her arms. But what you're holding is carte blanche to buy all the gold you can for Fisk. You've already bought $60 million worth. A mechanical ticker on the wall displays the current price. $150 in greenbacks for $100 in gold. You look up at it and call out a new bid. One million in gold at $151. A man near you looks incredulous. You recognize him as a prominent board member of

the stock exchange. 151? That's madness. I thought the price couldn't get any higher. You shrug your shoulders and give him a satisfied smile. It's a day for the history books. Then another man pushes his way through the throng and hands you a slip of paper. You open it and read the message. Put it to 155 at once, and it's signed James Fisk Jr. You look over at Fisk, who winks at you from across the room. So you call out the new bid. 152! You look up at the ticker as it creeps up a point. Every move higher means millions of dollars in profits for Fisk, and a nice cut for the brokerage firm you've built from the ground up.

So you keep going higher. 153. The other brokers stare at you in shock. But then all at once, they're falling over themselves to bid at the new price. The stock exchange board member turns to you, a furious look on his face. What are you doing? If you keep bidding the price higher, someone's going to gun you down. I'm just acting on my client's behalf. And who is your client. You just shake your head and bid again. Everyone is scrambling now to get their gold before the price goes any higher. Suddenly, Fisk appears behind you and taps you on the shoulder.

You turn around and he slips you another piece of paper. It has just a single number. 160. 160. You sure, Mr. Fisk? Mr. Fisk just gives you the same wink he gave you earlier. You nod your head and yell out the new bid. 160. Suddenly, a broker rushes into the room with a shocking announcement. Treasury selling. Treasury selling. The government is letting loose its gold. Your stomach drops. There's a brief moment of silence around the room. But then all at once, pandemonium.

The price of gold on the ticker plummets. You're paralyzed. In just a few minutes, multi-million dollar fortunes have been lost, including your own. On Friday, September 24, 1869, Wall Street thronged with spectators who clamored to hear the latest news about the gold-buying frenzy. Fiske and his traders kept buying up gold and pushing the price higher

until word reached the gold room that President Grant had ordered the sale of $4 million in government gold. Within minutes, the price of gold plummeted from $160 per ounce to $133. The gold room descended into chaos as investors scrambled to sell their holdings. Many had bought their gold with loans they couldn't afford to repay. Dozens of brokers were ruined. The damage in the gold room rippled through Wall Street.

The stock market fell 20% and hundreds of investors went bankrupt. Foreign trade ground to a halt. Crop prices plummeted, making farmers victims too. What became known as Black Friday devastated the economy for months. But the masterminds of the gold scheme dodged the wreckage. Thanks to his insider tip, Gould unloaded his supply before the government sale. And even Fisk managed to escape harm. He refused to reimburse his brokers for the purchases they made on his behalf. They ended up penniless. In ensuing investigations, Gould and Fisk avoided jail time with the help of corrupt New York judges and the best lawyers money could buy. After the scandal, Gould continued to grow his fortune, eventually gaining control of the great Union Pacific Railroad.

Fisk, though, wasn't so lucky. A few years later, his lavish lifestyle finally caught up with him, and he was shot dead by a romantic rival. As for President Grant, a congressional investigation cleared him of wrongdoing. While Black Friday tarnished the reputation of his administration, few questioned the president's own integrity. But soon, another shocking scandal would test his public standing, one that revealed how deeply rooted corruption flourished nationwide,

from corporate America all the way to Congress. As the Grant administration faltered under new reports of wrongdoing, Americans would begin to doubt the president's judgment, and whether the president himself was truly a man of honor. Are you in trouble with the law? Need a lawyer who will fight like hell to keep you out of jail? We defend and we fight just like you'd want your own children defended. Whether you're facing a drug charge, caught up on a murder rap, accused of committing war crimes, look no further than Paul Bergeron. All the big guys go to Bergeron because he gets everybody off. You name it,

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In November 1991, media tycoon Robert Maxwell mysteriously vanished from his luxury yacht in the Canary Islands. But it wasn't just his body that would come to the surface in the days that followed. It soon emerged that Robert's business was on the brink of collapse, and behind his facade of wealth and success was a litany of bad investments, mounting debt, and multi-million dollar fraud. Hi, I'm Lindsey Graham, the host of Wondery Show Business Movers. We tell the true stories of business leaders who risked it all, the critical moments that defined their journey, and the ideas that transformed the way we live our lives.

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President Grant's first term in office had been marred by corruption, but Grant himself had managed to hold on to his spotless military reputation. Grant's wartime achievements far outweighed the turmoil in his administration. He remained popular throughout the country, and in 1872, the Republican Party unanimously re-nominated him for a second term. But Grant told a reporter he was not anxious to stay on as president, though he saw re-election as a kind of vindication. It would be, he said, the best way of discovering whether my countrymen really believed all that was alleged against my administration and against myself personally. As Election Day 1872 drew near, Grant campaigned on a platform of continuing Reconstruction and protecting Black civil rights. But outrage

over corruption in his administration led a faction of Republicans to splinter off into a third party, the Liberal Republicans. Nonetheless, Grant remained a strong frontrunner. As the re-election campaign heated up, however, scandal once again emerged. This time, the corruption was centered on the booming railroad industry. Building the Transcontinental Railroad had been an enormous enterprise that required federal support. Railroad track had to be laid over 2,000 miles of rough terrain. Such a colossal undertaking required some 20,000 workers and cost tens of millions of dollars. In the 1860s, Congress had appropriated funds and land grants to the Union Pacific Railroad to build the tracks that ran from Omaha to Utah. But Americans

didn't know that the Union Pacific's top brass was pulling off a massive fraud. On September 4, 1872, just two months before voters would go to the polls, the New York Sun published a shocking expose under the banner headline, The King of Frauds. The Sun revealed that major Union Pacific stockholders had formed a dummy construction company, Credit Mobilier of America. They had funneled government-authorized stocks and bonds to Credit Mobilier to pay themselves to build the railroad line at roughly twice the actual cost of construction. Overcharging the government paid off. Their profits were staggering. And the corruption didn't stop at the Union Pacific boardroom. The executives and shareholders had bribed their way out of government oversight by selling bargain-rate shares to powerful Republican congressmen.

The Speaker of the House was implicated, and so was Grant's own vice president, Skyler Colfax. Hounded by the accusations, Colfax pulled out of the re-election campaign as Grant's running mate. Congress conducted an investigation and formally censured two congressmen. Still, the scandal fueled widespread distrust of Congress and the U.S. government in general. Americans were outraged to find out that politicians and business leaders had abused taxpayer money to line their own pockets. And the Credit Mobilier scandal damaged Grant's reputation, too, but he held on to popular support thanks to a strong economy.

When the voters went to polls in November, Grant won re-election by a landslide. But over the next year, support for Grant would waver as a series of economic disasters and more scandals shook the country. On September 18, 1873, Jay Cook & Company, a major investor in the nation's railroads, collapsed. The firm had overextended itself, and its bankruptcy triggered a nationwide economic crisis. During the ensuing Panic of 1873, the country's financial structure fell like a house of cards. Depositors rushed to withdraw their savings. For the first time in history, the New York Stock Exchange closed its doors, then remained shuttered for 10 days.

Banks called in their loans. The panic then spread to Boston, Philadelphia, Chicago. Thousands of firms went under, from manufacturers and railroads to law and accounting offices. Then, as banks foreclosed on unpaid debts, farmers lost their land. In New York City, more than 7,000 unemployed workers rioted. It was the largest protest the city had ever seen, and police dispersed the crowds with brutal force. African Americans were especially hard hit. Less than a decade had passed since emancipation, and former slaves were just starting to gain an economic foothold in southern communities. At the end of the Civil War, the government had chartered the Freedmen's Savings and Trust Company to provide financial services to newly freed slaves. But it too failed in June

of 1874, and thousands of Black families lost their life savings. The resulting depression was the worst economic downturn the country had ever faced. Grant and the Republican-led Congress scrambled to find a solution, and in the economic chaos, a fierce debate erupted over national monetary policy. Eastern Republicans and business leaders supported what was known as a hard money policy, where every dollar was backed by an equal amount of gold. Democrats and Republicans in the Midwest advocated a soft money policy, where the money supply was infused with paper cash or greenbacks. These soft money advocates hoped that expanding the money supply with paper money or silver would ease economic suffering. More money in circulation equals more money in people's pockets,

but also inflation, higher prices for crops. So in the spring of 1874, soft money advocates in Congress managed to pass a bill to inject $100 million of greenbacks into the economy. But Grant was determined to get the country back on the gold standard. After much deliberation, he sided with the hard-money advocates and vetoed the bill, arguing that inflation would damage the economy in the long term. Bankers and businessmen applauded, but there was a political backlash. Many Americans blamed Grant and the Republican-led Congress for mishandling the economy. And a rising tide of anger over the dire economic conditions, government corruption, and reconstruction in the South helped Democrats sweep the midterm elections

in 1874. Republicans maintained control of the Senate, but Democrats picked up an astonishing 94 seats in the House. In the following year, public outcry against the Grant administration would only grow with the exposure of yet another scandal. General John A. MacDonald was an old military friend of the president who had raised funds for Grant's re-election campaign. He also served as Grant's IRS supervisor in St. Louis. But MacDonald was the mastermind of an elaborate whiskey ring involving tax agents and distillers in New Orleans, Chicago, Peoria, Milwaukee, and Indianapolis. Under his fraud

scheme, tax collectors and distillers conspired to under-report sales. They pocketed millions of dollars of tax revenue, money that should have been going to the Treasury, and offered kickbacks to Washington officials to turn a blind eye. The whiskey ring had flourished for years, and Grant was none the wiser. All that would change when, in June 1874, Grant appointed Benjamin Bristow as his new Treasury Secretary. Bristow was a zealous former federal prosecutor, and he soon caught on to the corruption. He vowed to break up the whiskey ring, enlisting a sprawling network of undercover informants and investigators to gather evidence against MacDonald and the suspected ring members. In February 1875, the editor of the St. Louis Democrat wrote to Bristow with an offer.

There was a tireless reporter on the newspaper staff with the knowledge, insight, and contacts to help Bristow break up the ring. Bristow accepted the help. MacDonald, Grant's old war ally, was about to meet his match. Imagine it's May 1875 in St. Louis, Missouri. You're a reporter for the St. Louis Democrat, and months of investigation, mountains of paperwork, and countless sleepless nights have all led to this moment.

You open the door to the small office, your heart pounding in your chest. and countless sleepless nights have all led to this moment. Come in. You open the door to the small office, your heart pounding in your chest. Good afternoon, General MacDonald. Your quarry looks up to you with a toothy grin. Myron, how can I help you? You still working on that story about the grain industry? I have those statistics on annual production somewhere around here. No, General MacDonald, that's not why I'm here.

Well, and what is it? You take a deep breath. It's time to confront him with what you've uncovered. I know about your little ring. Well, little isn't the right word. What do you want about? Oh, you're not dumb or innocent. Just admit it. You've been embezzling money from the government. MacDonald's face darkens. You don't know anything. Actually, I do. There was never a story on the grain industry. I've been comparing your records. The amount of liquor going out for shipment doesn't match the tax documents. By my estimates, only one-third of the total tax on whiskey is being collected. You and your cronies have defrauded the government of millions of dollars. As your words sink in, McDonald tries another tack. Now, Myron, I can assure you this is all just a misunderstanding. There's no grand

conspiracy. And you're just a small-time reporter searching for a scoop that will get you off the business section and onto the front page. Yeah, you tell yourself that. Because the U.S. Marshals are on their way. Right on cue, two federal marshals barge through the door. Fear washes over McDonald's face, but only temporarily. His jaw tightens, and he turns back towards you. Well, we'll see what President Grant has to say about this. He's a close personal friend, you know. Well, believe me, I know. As you watch the marshals arrest McDonald, you wait for the feeling of satisfaction that usually follows finishing a major story. But this time, it's missing.

McDonald isn't just one of a few bad apples. You're convinced the corruption goes all the way to the top. In the spring of 1875, business reporter Myron Colony delivered mountains of evidence against the Whiskey Ring to Treasury Secretary Benjamin Bristow. Despite the president's close ties to McDonald, Grant was appalled by the revelation of his friend's central role in the fraud. Believing McDonald had betrayed both his friendship and the public, he pledged to support the investigation and even went so far as to appoint the government's first special

prosecutor. Soon, that prosecutor, John B. Henderson, began handing down indictments. But that summer, Henderson's investigation drifted up to the White House. His team of U.S. attorneys had discovered coded telegrams that appeared to implicate Grant's own private secretary, a man named Orville Babcock. Henderson believed Babcock had instructed the Treasury Secretary's early investigations to hide his own involvement in the whiskey ring. The Attorney General traveled to the President's summer home in New Jersey to discuss the evidence against Babcock. Grant stayed firm in his calls for accountability, declaring, let no guilty man escape. But Grant's vow to bring justice

against the whiskey ring soon rang hollow. When Babcock denied any wrongdoing, the ever-loyal Grant believed him. When in December 1875, Babcock was indicted on charges of defrauding the government, Grant was furious. He ordered his attorney general to fire Henderson, the special prosecutor. Democrats were outraged by what appeared to be presidential interference in the pursuit of justice. But when Babcock's case went to trial in February, Grant made another shocking decision. He offered a written statement testifying to Babcock's innocence. Grant swore, I always had great confidence in Babcock's integrity.

It was the only time a U.S. president has ever testified as a defense witness in a criminal trial. And his testimony was persuasive. The jury acquitted Babcock largely on the basis of Grant's statement. But more than 100 other men were convicted in the course of Henderson's investigations, and the government retrieved more than $3 million in stolen tax revenue. But once again, Grant had tarnished his presidency through his unwavering loyalty to corrupt associates. There seemed to be no end to the scandal in Grant's administration, and in the coming days, new damaging revelations continued to emerge. The Secretary of War, William Belknap, was known around Washington for throwing lavish parties

and outfitting his wife in exquisite gowns. Many wondered how he managed such an extravagant lifestyle on a government salary. The answer came in early 1876, when Congress discovered evidence Belknap had been pocketing bribes from companies that sold supplies to Native American reservations. When these facts became public, just days after Babcock's acquittal, Belknap submitted his resignation to Grant. Grant said he would accept it, with great regret. The resignation didn't stop the Democrat-controlled House, though, from impeaching Belknap. Later that day, members of Congress charged him with criminally disregarding his duty as Secretary of War and basely prostituting his high office for his lust for private gain.

The Republican-held Senate acquitted him in August. But by then, the Grant administration corruption was undeniable. To many Americans, his presidency seemed to embody scandal and economic decline. And even though Grant's personal integrity was never questioned, he had never profited from any of the scandals that touched his administration. His own honesty often blinded him to the dishonesty of others. Time and again, Grant showed poor judgment, and as a result, corruption ran rampant under his watch. By the summer of 1876, as Americans prepared to celebrate the nation's centennial, many believed the country had fallen far from its founding ideals.

Raising corruption seemed to be hurtling the nation down a path to ruin. Americans looked to the upcoming presidential election for a fresh start. But just a decade after the North and South had laid down arms, a dangerous political crisis would spark renewed fears of a new civil war. Richard Bandler revolutionized the world of self-help all thanks to an approach he developed called neurolinguistic programming.

Even though NLP worked for some, its methods have been criticized for being dangerous in the wrong hands. Throw in Richard's dark past as a cocaine addict and murder suspect, and you can't help but wonder what his true intentions were. I'm Sachi Cole. And I'm Sarah Hagee. And we're the hosts of Scamfluencers, a weekly podcast from Wondery that takes you along the

twists and turns of the most infamous scams of all time, the impact on victims, and what's left once the facade falls away. We recently dove into the story of the godfather of modern mental manipulation, Richard Bandler, whose methods inspired some of the most toxic and criminal self-help movements of the last two decades. Follow Scamfluencers on the Wondery app or wherever you get your podcasts. You can listen to Scamfluencers and more Exhibit C true crime shows like Morbid and Kill List early and ad-free right now by joining Wondery Plus. Check out Exhibit C true crime shows like Morbid and Kill List early and ad-free right now by joining Wondery Plus. Check out Exhibit C in the Wondery app for all your true crime listening.

Dracula, the ancient vampire who terrorizes Victorian London. Blood and garlic, bats and crucifixes. Even if you haven't read the book, you think you know the story. One of the incredible things about Dracula is that not only is it this wonderful snapshot of the 19th century, but it also has so much resonance today. The vampire doesn't cast a reflection in a mirror. So when we look in the mirror, the only thing we see is our own monstrous abilities. From the host and producer of American History Tellers and History Daily comes the new podcast, The Real History of Dracula. We'll reveal how author Bram Stoker raided ancient folklore, exploited Victorian fears around sex, science, and religion, and how even today we remain enthralled to his strange creatures of the night.

You can binge all episodes of The Real History of Dracula exclusively with Wondery Plus. Join Wondery Plus and The Wondery App, Apple Podcasts, or Spotify. On a chilly May morning in 1876, tens of thousands of people streamed into Philadelphia's Fairmont Park for the grand opening of the Centennial Exposition, commemorating the 100th anniversary of the nation's birth. It was a grand and elaborate affair. Visitors crowded into the 14-acre Machinery Hall for the opening ceremonies, which featured a 1,000-voice choir and a 100-gun salute. Spectators watched in awe as President Grant and the Emperor of Brazil pulled twin levers to start the towering Corliss steam engine, which provided electricity to the whole exposition.

Nearly 10 million Americans visited the exposition during its six-month run. They were dazzled by displays of America's industrial might and technological progress. Visitors were introduced to the commercial typewriter, the mechanical calculator, Thomas Edison's automatic telegraph, and Alexander Graham Bell's newly patented telephone. The centennial exposition was staged in celebration of American unity and progress. Women activists had pushed hard for inclusion, and a women's pavilion featured exhibits created solely by women, raising awareness of their contributions to American industry. But this spirit of inclusion

had its limits. Contributions from African Americans were largely invisible, and displays of Indian artifacts treated Native Americans as remnants of the country's primitive past, rather than a living people who had a part in America's bright industrial future. And beyond the fairground gates, the country was fracturing amid scandal, depression, and a contentious political climate. The two main political parties, the Republicans and the Democrats, were locked in a fierce battle for control of the country. The Republican Party had been founded to stop the expansion of slavery, and it was also a staunch supporter of American business. Republicans wanted an active federal government that stimulated the economy and protected American industry from

foreign competition. Their electoral strength lay in the Midwest and rural Northeast. Their main rival, the Democrats, wanted a small federal government and greater local control. They were strong in the South and in northern industrial cities where Democratic political machines harnessed the immigrant vote. After the Civil War, Black voting had expanded and freedmen had gained new political power, bringing racially integrated state governments into office. Democrats bitterly opposed the Reconstruction policies that allowed these political shifts to take place and aimed to bring basic rights to former slaves. But Republicans and Democrats found common ground on some of the pressing issues of the day, from tariff policy to ending corruption in government. But both parties remain fiercely competitive, and political participation reached heights unmatched in any other time in

American history. In the three decades following the Civil War, nearly 80% of eligible voters cast ballots in presidential elections. African-American men, granted the right to vote with the 15th Amendment, came out in large numbers in Southern districts, and some were even elected to state legislatures. But in the 1870s, Democrats moved to take back political control of the states and fought to dismantle African American civil rights. As the election of 1876 drew near, it was shaping up to be one of the most contentious the country had ever seen. Grant was considering running for an unprecedented third term, but in the end, the Republicans nominated Ohio Governor Rutherford B. Hayes, who was nicknamed the Great Unknown. He was an obscure figure on the national scene,

but party leaders thought him an ideal candidate. Like Grant, he had been a union general during the Civil War, but he was scandal-free, and he came from an important swing state. The Democrats nominated the quiet and calculating New York governor Samuel Tilden, who had risen to fame taking down Boss Tweed, New York City's infamously corrupt Democratic Party boss. Tilden positioned himself as an antidote to years of Republican corruption. On election day, eight and a half million voters flocked to the polls.

Democrats in the South violently suppressed the black vote, but among whites, the 1876 election saw the highest turnout in American history. Both sides knew the vote would be close, but they didn't anticipate just how razor-thin the margins would be. Imagine it's just after dawn on November 8, 1876, the morning after Election Day. You're in New York City, a block away from the Republican Party headquarters at the Fifth Avenue Hotel. The sun has barely risen in the sky, but you've been up all night. Push past a newsboy hawking papers with the latest election results declaring Tilden the winner. You just hope you're not too late.

As you enter the hotel, you immediately run into the Republican Party chairman. He doesn't look like he's been to bed either. Oh God, tell me I've made it in time. You haven't put out a concession statement yet. I'm on my way to the telegraph office now. He holds up a copy of the New York Tribune, declaring Tilden the winner. What a disaster for us. No, it doesn't have to be, though. Listen, I have a friend at

the Times. His sources in Louisiana and South Carolina are declaring victory for Hayes. What are you talking about? Sir, I believe there's still hope for us. Tilden's captured New York, no shock there, and it's looking like New Jersey is going in his direction, too. But Louisiana, South Carolina, they're adjusting their count. They're putting the votes in Hayes' column. So where does that leave us? You take a long, deep breath. By my count, that's 175 certain votes for Tilden and 178 for Hayes. A smile begins to spread on the chairman's face. Okay, okay, but what about Oregon and Florida? Oregon is still in doubt, but it's looking good for us.

Florida, not so much. If they capture Florida, we're done. That's true, sir, yes. But it's close enough to make a concession premature. The chairman nods his head. There's a new fire in his weary eyes. All right, all right, very well. Let's get to the telegraph office.

Let's tell Tillon's men we're not conceding. Not until every vote is counted. Yes, thank you, sir. You won't regret this. You rush off to the telegraph office. Thrilled, Hayes still has a chance. You just hope the matter is resolved quickly. A contested election is the last thing the country needs right now. The day after the election, most Americans assumed that Tilden had won. The Chicago Tribune lamented Hayes' defeat on its front page with the headline,

Lost! The Country Given Over to Democratic Greed and Plunder. And indeed, Tilden had won the popular vote and racked up 184 electoral college votes, just one shy of the 185 needed to secure the win. But 20 electoral votes still needed to be confirmed. Oregon, South Carolina, Louisiana, and Florida were still up for grabs amid accusations of fraud, voter intimidation, and deliberately confusing ballots. At first, Hayes was prepared to concede, but his campaign team sent out urgent telegrams to the crucial disputed Southern states, instructing them to stand firm. Weeks went by, and Republicans and Democrats in the contested states

each submitted their own set of returns, with both parties claiming victory and accusing the other of voter fraud. The nation was staring down the barrel of a constitutional crisis. Under the 12th Amendment, Congress was empowered to break the deadlock by counting the electoral votes. But because Democrats controlled the House and Republicans controlled the Senate, neither party trusted the other to oversee a fair recount. So the impasse continued for weeks as the country waited to hear who would take the oath of office in March. Finally, in January, lawmakers appointed a special commission to resolve the issue. The commission was comprised of five Republican legislators,

five Democratic legislators, and five Supreme Court justices. And although Hayes had lost the popular vote, he was named the victor by a single electoral vote, 185 to 184. But Congress still had to accept or reject the commission's decision. The Democratic House was furious to see Tilden lose, but they had little choice. Barring Hayes from the White House could ignite violence, as the Democratic National Committee chairman declared he preferred four years of Hayes administration to four years of civil war. But Democrats realized they had some leverage. They wanted to get something

out of sending another Republican to the White House, and they focused their wrath on dismantling Reconstruction. For years, federal troops had occupied southern states to protect Black civil and voting rights. Democrats resented this federal intervention in the South and the growing political might of former slaves. In the contested presidential election, they saw a chance to restore their power. Legislators met behind closed doors to iron out a deal. The negotiations went down to the wire. On March 1st, just 72 hours before Inauguration Day, the lawmakers hammered out what became known as the Compromise of 1877.

Under the agreement, Democrats agreed to make Hayes president in exchange for the complete withdrawal of federal troops from the South. The departure of the troops and the protections they ensured effectively brought Reconstruction to an end. Rarely had an election come so close to tearing the nation apart, and the peaceful end came at a cost to the civil rights of Southern Blacks. The rollback of federal intervention in the South opened the door for racism, segregation, and violence to thrive for another century. And it stripped the modest economic gains that freed slaves had earned in the years after the Civil War. The hotly contested election and the absence of a clear popular mandate meant that

Hayes entered the White House on a weak footing, a burden that would also undermine his successors. Throughout the Gilded Age, the power of the presidency would pale in comparison to the might of Congress. But most powerful of all were the magnates and business leaders who harnessed the booming industrial economy to amass staggering fortunes. In this era of weak presidents, the titans of industry would expand their wealth even as the working class was left behind. And soon, frustrations with the new industrial order would erupt in violent unrest. On the next episode of American History Tellers, a new class of robber barons climbs to the top, crushing competitors to build vast empires of wealth and transform American industry.

But workers rise up, launching a nationwide railroad strike that brings the economy to a screeching halt. From Wondery, this is Episode 1 of The Gilded Age for American History Tellers. If you like American History Tellers, you can binge all episodes early and ad-free right now by joining Wondery Plus in the Wondery app or on Apple Podcasts. Prime members can listen ad-free on Amazon Music. And before you go, tell us about yourself by filling out a short survey at wondery.com slash survey.

American History Tellers is hosted, edited, and produced by me, Lindsey Graham for Airship. Audio editing by Molly Bach. Sound design by Derek Behrens. This episode is written by Ellie Stanton. Edited by Doreen Marina. Our executive producers are Jenny Lauer Beckman and Marshall Louis. Created by Hernán López for Wondery. For more than two centuries, the White House has been the stage for some of the most dramatic scenes in American history.

Inspired by the hit podcast American History Tellers, Wondery and William Morrow present the new book, The Hidden History of the White House. Each chapter will bring you inside the fierce power struggles, the world-altering decisions, and shocking scandals that have shaped our nation. You'll be there when the very foundations of the White House are laid in 1792, and you'll watch as the British burn it down in 1814. Then you'll hear the intimate conversations between FDR and Winston Churchill The White House is now in the White House.