Daily Ohio statesman. [volume] (Columbus, Ohio) 1855-1870, 1867-04-04
Stock JObbing-ArrestO of Daniel
Drew-S25O,OOO BaiI-What one
Broker. Thinks of Another.

T8 [From the N. Y. Tribune, March 30th.I f''t
In the Supreme Court, an order of arrest
has been granted against Daniel Drew, the
great Erie operator, on charge of fraud,
in which $3.50, bail was asked and given.
The complaint on which the arrest was
| granted. charges in substance that one
Leonard Huyck (whom the plaintiff repre-
sents through assignments), with some
others, entered into an arrangement with
Daniel Drew and E. d. Burr to form a
1poOP' 10 Erie, with a basis of 5000 shares:
that on the 29tho of January, 1866, being the
owners of some $500 shares, these parties
made anew arrangement by which Daniel
Drew was to put in twice as much-186 500
sharesT7and operate the pool for the benefit
of all concerned; that this arrangement was
to continue for sixty days, and Fisk &
Belden were to act as brokers; that Drew
was to have the right to take in 5000 shares
more, but did not; that, prior to such an
agreement, large profit had been made
for the pool, and that Fisk & Belden knew
1t; that another one interested in the pool,
named Baxter, also knew il, but was im-,
duced to keep quiet by guaranty from
Drew; that Drew conducted operations not
for the b, neft CT the pool, but for his own
benefit, keeping Fisk & Belden in partial
ignorance of the transactions, and by his
operations made over $2,000000. 1t is
claimed that this gain was really made for
and belonged to the pool, but that Drew
failed to give any account of the profits to
the other persons interested; and it is fur
ther claimed that he did not put in the 49,
600 shares which he stipulated to do, and
therefore is not entitled to share in the
profits. Huyek ultimately failed, but was
induced by representations OfFlsk & Belden
tOexecute some kind dofassignment to them.
This assignment is claimed to have been
procured by fraud. The plaintiff procured
a judgment for $177,59769 against Huyck,
and then the execution being returned un-
satisfied. procured from him an assignment
of his claim against Drew. He held $500
shares (Which. it is claimed, were procured
by the plaintiffs money! in the original
pool, and the plaintiff claims, as standing
in his shoes, over $300000. The summons
in this case was issued on the 22d inst,
and made returnable in twenty days. The
complaint, which sets forth in detail the
charges we have epitomized above, was
sworn to on Tuesday last. Accompanying
this complaint are attached copies of the
original agreement for forming the pool,
aud a letter written by William Beiden.
one of the firm of Fisk 6 Belden, to
friend who had an interest in the pool, in
which the latter makes some interesting
revelations respecting the great Railway
King, for whom the firm of Fisk & Belden
were brokers. AS this letter has been printed
with the complaint, it is no violation of Sc
crecy to quote the following sentences
from it to show what one Wall street bro
ker thinks of another:
'1 "NEw DIRK, June, 13, 1866.
Almost Immediately after the
stock had been purchased for the second
Erie pool (recollect the first pool sold at a
pTotit),. almost Immediately, / say, Fisk
and discovered to a certainty that Daniel
Drew and e. d. Burr were engaged in a
cool, deliberate game to swindle and de-
fraud those in the pools. We sat up all
night over it at the Fifth Avenue Hotel, and
made up our minds tfrat we would take the
following course: Be quiet and say noth-
ing, as we could say nothing that would
benefit any one at that time. To have told
the members of the pool the facts in our
knowledge would have, of course, brought
on difficulty at once, in which event Mr..
Drew would, at the most, have to do moth
ing more than to refund the original mar
gin.* Mr.. Drew has been speculating,
and has made large amount of mo0ey.
He intends to defraud the gentlemen in
the pools. out of their rights. We have
stood here, having appeared to stand by
Mr.. Drew, who has taken it for granted
that Fisk and would help him through
with his devilish schemes, as he could not
very well swindle without Fisk and I
knowing it--seeing in the interval that by
perfectly quiet, we could put
ourselves in a position to see and learn
great deal for the interests of the pools,
IL n.