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Nathaniel Marsh (1815-1864)[1], nephew of Samuel Marsh (1782-1876)[2], was an executive of the New York & Erie Railroad who managed it through some of the most difficult financial times in 19th Century America, successfully defending and maintaining the company in the face of complex and hard-driven attacks of financiers such as Daniel Drew and Cornelius Vanderbilt.

Nathaniel Marsh was born on 27 November 1815, in Haverhill, Massachusetts to David Marsh, Jr. (1767-1854) and Sarah Colby (1779-1849). His father was a textile (carding) and shoe manufacturer, a well-known and respected citizen of his day.[3] Nathaniel was educated at Dartmouth College, Hanover, New Hampshire, from which he graduated in about 1834. He then studied law in Massachusetts. On 20 May 1839, in Haverhill, Nathaniel married Elizabeth Atherton Brooks (1814-1846)[4]. They had three children: Eliza Brooks Marsh (1840-1921)[4]; James Marsh (1841-1860); and Samuel Marsh (1846-1910)[5]. Upon her death in 1846, he married Julia Townsend (1825-1898)[6], by whom he had six children: Nathaniel Marsh, Jr. (1850-1924)[7]; Willie Townsend Marsh (1851-1851); Susie Marsh (1856-1859); Mary Townsend Marsh (1859-1929)[8]; David Marsh (1862-1933)[9]; and Julia T. Marsh (1864-1950)[10]. Nathaniel died, possibly from "consumption," at his home and with his family on 18 July 1864, Clifton, Staten Island.

His professional career began with his admission to the bar in Massachusetts, after which he moved to New York. He first worked, not as an attorney but, rather, as an Assistant Editor of the Evening Express. From that position he went on to become the First Assistant Postmaster of New York City, under John L. Graham, who served 1841-1844.

In 1845, Nathaniel's uncle, Samuel Marsh participated in the issuance of a $3 million subscription intended to complete the New York & Erie Railroad's construction. From 1846 until 1865, Samuel Marsh was vice-president of the Erie Railroad, his incumbency occasionally interrupted by his serving as president ad interim.[11]

Thus it was that Nathaniel Marsh, Samuel's nephew, became Secretary of the Erie. Nathaniel maintained this position through 1859, an era of financial roller coaster dimensions. On 3 August 1850, Marsh faced his first major challenge when an Erie Railroad bridge collapsed under the load of an eastbound freight train: “There were seventeen cars besides the engine and tender. At the time the train approached the bridge, it was going at an ordinary rate, but the engine had but just got fairly off the solid track when the engineer heard a crack and felt something giving way, whereupon he put on all the steam possible and succeeded in getting the engine, which was a very powerful one, upon the other side; but just as he cleared the bridge, it went down with a crash, carrying the tender with it; the cars following, tumbled into the abyss one after another.” Three men were killed in the wreck. This was just one of the numerous unexpected events that caused the Erie's initial, projected cost of completion of $6 million to soar.

In 1856, while maintaining his position as Erie Railroad Secretary, Nathaniel became the Treasurer of the Long Dock Co., which had its offices at the same location as the Erie - 45 Wall Street. The Long Dock Company was created to construct a route for both the Erie and Delaware-Lackawanna Railroads to reach their respective stations, the Pavonia Terminal and Hoboken Terminal, located on the Hudson River. Integral to this purpose was the construction of the Long Dock Tunnel. It took five years to complete, costing 57 men their lives.

Cost overruns, lack of income to offset expenses, corruption on the part of officials and graft on the part of employees, market fluctuation - these factors and many more fueled Erie's debt increases. By 1851, $20 million had been expended - $14 million more than initially expected - and this, and other factors, contributed to the ever-declining financial stability of the Erie.

Perceiving the Erie to be weak and subject to take over on 23 July 1857, Daniel Drew (one-time cattle drover and Wall Street banker-broker) obtained a position on the Erie Board of Directors, intent on - and successfully - using his position to manipulate the railroad's stock price. In so doing, he was collaborating with Cornelius Vanderbilt. Their goal was to drive the Erie into bankruptcy, so that they could "rescue" the Erie from bankruptcy. The "Panic of 1857" gave further impetus to their schemes.

On 12 October 1857, Nathaniel Marsh, on behalf of the Board and President, announced to the "Stockholders and Bondholders of the New York & Erie Railroad Company": "The event we have dreaded and foreshadowed to you at the two meetings held on the 23d September and on the 2d inst., has at last occurred. This company has been forced to allow its engagements falling due yesterday to be protected, notwithstanding the strenuous efforts of its officers, who unaided by you, found it impossible to obtain temporary loans, although they showed that they could be reimbursed in a few days from the receipts of the company. It now becomes imperatively necessary that you should come promptly forward to relieve this Company, so as to prevent your valuable property from passing into other hands, at the risk of being wasted away in litigation between the parties in interest." The Erie then called a meeting to address this looming failure.

In August 1859, bondholders Daniel Drew and others forced the Erie Railroad into receivership, with Nathaniel serving as "Receiver. By early May of 1861, the Erie had successfully re-organized, with Nathaniel now serving as President and his uncle, Samuel, as Vice-President. By December that same year, they both were on the Board of Directors, along with Daniel Drew, and by 1863, along with Cornelius Vanderbilt. From 1861 to his death in 1864, Nathaniel continued to serve as Erie's President. The fact that his integrity remained unquestioned is perhaps best exemplified by his having served on a compensation commission appointed by the Secretary of War to reimburse the B&O Railroad fairly for its losses after being seized by the government for the war effort.