The New York herald., 1868-02-20

and Speculation Against Business PrIn-
ciples.
Inc Supreme Court is just now engaged in
inc very commendable enterprise Of uncover
Ing certain Wall street speculations Of pecn-
mar order, and pertaining to the operations Of
DANIEL Drew, leading speculator in Erie
stocks. The action appears against Mr.. Drew
IN the form OF an injunction restraining the
Erie Railway Company from paying any part
OF the sum OF three million dollars loaned to
the company by the defendant prior to May,
1866, previous to which date the defendant
played the role OF bear in Erie stock specula-
ton. For the consideration OF the above
mentioned sum (three million dollars) the
company hypothecated ffty-four thousand
shares OF new stock with Mr.. Drew, permitting
him two years Of speculative operation there
with on covenant that at the expiration Of that
period the stock be returned to the company
upon payment Of the three millions, the in
junction to restrain payment Of which by
the company ID granted on the ground that
Mr.. Drew has already amassed more than sufH-
cient profits through his control of ffty-eight
thousand shares Tin alp to pay both principal
and interest of the three millions originally
advanced. and upon petition Of Mr.. Frank
Work, one Of the directors of the company.
Nor is this the end. Mr.. Drew not only loses
the original three millions but an effort is
being made to oust him from his Office as
treasurer and as director Of the Erie Railroad
Company on the ground Of malfeasance, the
Attorney General having commenced an action
for this purpose on behalf of the people Of the
State Of New York. Thus stands the case at
present, and from all appearances Mr.. Drew
seems likely to be the losing man in the issue.
Aside from all issues as to the merits Of the
case, it may be shrewlly suspected that the
defendant has been simply entrapped by Van
derbilt, who is, no doubt, the operating strate-
gst Of the whole tran saction. Mr. Frank Work
and Others being simply component parts of
the trap, the pawns anl knights of the con-
trolling mind. Having compassed the control
of the Hudson River. Harlem and New York
Central Railroads, shrewa suspicion may be
entertained that Vanderbilt is figuring for the
control of the Erie thereby making himself
complete master Of the situation and introduc-
ing new system into the generally specu-
lative modes Of railway ma nagement
The lines now controlled by Vanderbilt
furnish excellent examples Of what may be
done ty managing railroads upon strictly
business principles-that is, by looping of the
excrescences Of the contract and deadhead
system and running roads for the benefit Of
tho great travelling and trafiokiAg public
and there can be no doubt that the Erie
Railroad, were 1t once placed In the hands Of
thorough manager, might be made dividend
paying concern, which 1t never has been.
With the case Of Mr.. Drew, therefore, the pub
lie Is little concerned except so far a. its dis
closures may have tho effect Of an argument
in favor Of conducting our railroads upon
strictly business principles, and not for the
benefit of stockholders and spectators. Pre-
vious to the time that Vanderbilt obtained con-
troll OF the several railroads now in his hands
the whole railway interest Of the State of New
York was substantially at the mercy Of poll
ticians and stockholders. Railroads were
simply corporations by which profits were
wrung from the pockets Of the public tracks
and rolling stock were often in absolutely life
endangering condition, and for lack OF the
most common precautions accidents were Of
frequent occurrence; and all this that stock
holders might gorge their pockets with profits
and feed their railroad rings to the best ad-
vantage.
To an extent therefore, the operations Of
Vanderbilt have been public benefaction in
proving that railroads may be conducted upon
business principles and lessening the danger
Of accident in travel by steam. The fact is,
the one man power-the concentration OF the
executive part Of any enterprise in the person
OF single individuals the true theory OF
business economy, as has been demonstrated
by Ar. Vanderbilt Stockholders, as body,
are always shortsighted and trucking. I'm
mediate realization is their motto, and to
immediate realization they subordinate the
ultimate interest Of an enterprise. This prin-
ciple has been illustrated over and over again,
and with the utmost emphasis, in the history
ofNew York journalism, by tho subordination
OF newspapers to partisan purposes and
TO the furtherance of strictly partisan
interests; and thus independent and far
sighted enterprise has been hampered
and made Of no effect in the conduct Of news
papers, Before the HERALD was started II was
deemed impossible that an independent journal
should succeeds journal managed upon the
broadest system Of the dissemination Of the
news Of the day and Of intelligent and bold
criticism Of public affairs from . purely non-
partisan standpoint. The success the HERALD
upon those principles has, however, demon
strated the efficiency Of this system in its appl-
cation to journalism, ~ the success Of Wander.
bilt in railroad enterprise has demonstrated
the efficiency Of broad business principles In
their application thereto. Immediate reaIfxa-
ton has been the bans both Of railroad and
journalistic enterprise, ana viii continue to be