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In the 1856-57 session, the Republicans at Albany shortened Wood's second term of office from two years to one, and created a Metropolitan Police Force, with Frederick Talmadge as superintendent, to replace Wood's corrupt Municipal Police. Talmadge demanded that Wood disband the Municipal Police, but Wood refused, even in the face of a May 1857 decision by the Supreme Court. Superintendent George W. Matsell, 15 captains and 800 patrolmen of the Municipal Police backed Mayor Wood. Captain George W. Walling pledged his loyalty to the new Metropolitan Police and was ordered to arrest Mayor Wood. Wood refused to submit and when Captain Walling attempted force, New York City Hall was occupied by 300 Municipal policemen, who promptly tossed Captain Walling into the street. Fifty Metropolitans in frock coats and plug hats then marched on City Hall with night sticks in hand. The Municipals swarmed out and routed the Metropolitans. Fifty-two policemen were injured in the police riot. The Metropolitan Police Board called out the National Guard, and the Seventh Regiment surrounded City Hall. A platoon of infantry with fixed bayonets marched into City Hall and surrounded Mayor Wood who then submitted to arrest. Mayor Wood was charged with inciting to riot, released on nominal bail and returned to his office.
The gangs of New York had a field day. Pedestrians were mugged in broad daylight on Broadway while rival policemen clubbed each other to determine who had the right to interfere. Soon the gangs were looting and plundering without interference, but turned on one another in turf wars, which culminated in the Fourth of July gang battle. The Dead Rabbits, the Plug Uglies and several other Five Points gangs marched into the Bowery to do battle with the Bowery Boys and to loot stores. They attacked a Bowery Boys headquarters with pistols, knives, clubs, iron bars and huge paving blocks, routing the defenders. The Bowery Boys and their allies the Atlantic Guards poured into Bayard Street to engage in the most desperate and largest free-for-all in the city's history. The Metropolitans attempted to stop the fighting but were severely beaten and retreated. The Municipals said the battle looked like a Metropolitan problem and was none of their business. Fernando Wood served a second mayoral term in 1860-1862. Wood was one of many New York Democrats sympathetic to the Confederacy, called 'Copperheads' by the staunch Unionists. During his second mayoral term in January 1861, Wood suggested to the City Council that New York City secede and declare itself a free city, to continue its profitable cotton trade with the Confederacy. Wood's Democratic machine was concerned to maintain the revenues (which depended on Southern cotton) that maintained the patronage. Wood's brother Benjamin Wood purchased the New York Daily News in 1860, supporting Stephen A. Douglas, and was elected to Congress, where he made a name as an opponent of pursuing the American Civil War. Subsequent to serving his second mayoral term, Wood served again in the House of Representatives from 1863 to 1865, then again from 1867 until his death in Hot Springs, Arkansas. On January 15, 1868, Wood was censured for the use of unparliamentary language. During debate on the floor the House of Representatives, Wood called a piece of legislation "A monstrosity, a measure the most infamous of the many infamous acts of this infamous Congress." An uproar immediately followed this utterance, and Wood was not permitted to continue. This was followed by a motion by Henry L. Dawes to censure Wood, which passed by a vote of 114-39. Notwithstanding his censure, Wood still managed to defeat Dr. Francis Thomas, the Republican candidate, by a narrow margin in the election of that year. Wood served as Chairman for the Committee on Ways and Means in both the 45th and 46th Congress (1877-1881).
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