The Stourbridge Observer, Cradley Heath, Halesowen & District Chronicle.
Stourbridge, West Midlands, England, 1868-04-11 00:00:00

il

GIGANTIC RAILWAY TRANSACTION.

The Pones, in a leading article, has the following remarks
ou the great " Railway War "h America

Even the impeachment of the President is not the
meet interesting of contemporary events in America.
That great public trial, in which for the fleet time the
Executive and Legislative powers are exhibited in
opposition to each other, attracts at the pet-Kent
moment less attention in New York than the
tremendous atrugele hilweets Vanderbilt and Drew for
the control of the, Erie Railway. The readers of
American correspondence will have gained &sufficient
general knowledge of the Erie "Railway War," in
which the financial and legal contest has been followed
by a tate primitive and material warfare. At the
latest dates the office at which we of the champions,
Mr. Drew, has intrenched himself was guarded by his
friends and supporters, armed to the teeth, while a
body of citizens was ready at call to resist any attack.
The events which have led to this state of things are
worthy of recapitulation, an giving a lively picture of
New York life at the present day.
Whatever may be the tendency of modern English-
men to speculation, they certainly do not go beyond
their brethren of the Western hemisphere. Nor are
the sums, real or imaginary, with which our capitalists
deal more colossal than those which are wielded by
the magnates of New York city. Up to two years
ego we were almost overwhelmed by grand specula-
tions. We were so much accustomed to hear of
liens that an involuntary feeling of contempt artier!' in
the mind of all but the most sober at the amounts Pe
voiced in ordinary btutiness. But we never did any-
thing on a larger scale than these New Yorkers, who
are now engaged in a life-and-death struggle which will
possibly terminate in the defeat and bankruptcy of one
of the champions and hi 4 supporters. The story idiginiply
this :—Mr. Daniel Drew has been for years the Trea-
surer and the most influential Director of the Erie
Railway. He has made a large fortune, which has
been principally invested in it. Moreover, he has been
a bold and successful speculator in its stock. During
seven years its price has fluctuated widely, with a
range from 17 in 1861 to 126 in 1864, and then back
again te 70 or 80. "Mr. Drew has controlled these
fluctuations, and the speculators who have disregarded
his will and interests rarely obtain more than a delu-
sive triumph." Some of Mr. Drew's strokes have
been, indeed, magnificent—as, for instance, when, to
bring down the stock, he obtained possession of 58,000
shares, and threw them all on the market, to the ,
amazement and ruin if his adversaries. Ins very few
days Erie fell 40 per cent.
But the despot of the Erie Railroad has found a
worthy opponent, Mr. Vanderbilt, whose name as a I
man of immense wealth and commercial energy is well
known in this country, controls the New York
Central and other roads, and has been desirous to add
the Erie road to his dominions. In January last he I
began to invest in the stick; the price rose,
speculators bought, though it was known that Mr.
Drew was not in the movement. Suddenly the price
fell, large amounts were pressed for sale, all aorta (4
unfavourable rumours were circulated, and it Was sup- :
potted a panic was impending. Drew and his Merida
sold largely for future delivery. "It was at this
point," says our Correspondent, "when Drew had
loaded himself with orders for future delivery, that
the nature and strength of the movement for a rise,
and the fact that Vanderbilt was engaged in it were de-
veloped." Since that time the war has been to the
knife. "A. combination was formed to overwhelm
Drew." The two champions appear to have obtained
immense sums of money to carry on the contest,
which hats been waged not only iti Wall-street, but
in the Courts of Law. Each party found a Judge
ready to support its view of the case. At last an order
was procured for the seizure of the railway accounts
and the arrest of Drew and all the Erie Directors for ;
contempt. Drew, boss-ever, was on the alert. and
moved the entire office of the Erie Railway acme; the
Hudson river to Jersey city, beyond the limit.' of New '
York State, and, consequently, beyond the reach .4
the order of arrest. This brings UR to the part ttf the
affair which is the meet popularly interesting. All
the books and papers and several millions of money
were safely got acroes the river, hitt Vanderbilt put
officers at the ferries to arrest the Directors. These
escaped, however, with the exception t.lf the Vice.
President, who was captured and lodged in gaol. I
Drew and his friends established themselves at a hotel, I
where, fully armed and with a MniOn of sentinels, I
they still carry on the busineen of the railway. If
New York reports be true, the Vanderbilt party hired ,
• body of 40 "roughs" to capture Drew mid bring;
back the bnoke re the Company. The " ropglis"
were to have had fifty thousand dollars if successful,
but, notwithstanding this great incentive to activity,
they failed in the attempt. 'ln the meanwhile,"
says our Correspondent, "Drew and his Director.'
remain at their hotel in Jersey city, strongly guarded
with police, and sentinels, and special patrols, anti
armed boats' crews, and three small cannons, and
everything else that is necessary to make a atteceeeful
opposition to any raid that may be ergauized."
lavers are full of comments on this spirited contest,
and the report+ of the law proceedinge are volamitems.
The decisions of the Judges are conflicting, and even
the personal honour of an occupant of the Bench has
been questioned
Whatever may have been tl,e rec'slte -use, I ,isiiy
management in England, we hive Lel :mt. itg hes
creditable than this contest, in which 11". ci.i,•fs if two
parties of opposing specuiators pereist, tOt any toga illess
if the welfare f the conceru, which is niche the in-
strument and victim of their inachieations. 'rite 'flair
heart witness to he boldness of the New York
tesent.t. ~, but it aliet 'thews that in the New Wild, as
W. it !AK here, the interests of the sharehollere ard the
public can be eet at naught by men of 0110Imons wealth
and unbounded ambition.