Mower County transcript. [volume] (Lansing, Minn.) 1868-1915, 1872-12-05
THE CORNER IN NORTHWESTERN.
How Could Heat Dan lei Drew.

THE CORNER IN NORTHWESTERN.
flow Could Heat Daniel Drew.
The New York Times of Sunday ha,
the following about the new corner:
"During the forenoon and in the
early part of the day William Travers
covered his shorts, paying, it is alleged,
$3.50, 900 difference. Charley Lamont
stood up to the rack, also, and paid his
differences, amounting to nearly the
same sum. These contracts were
settled on the basis of $3.50. The
highest estimate of the amount of stock
of which Daniel Drew is short is q, 0OC
shares, and the lowest $4,000. Should
he settle in full upon the closing price
OF new, he will lose nearly $500, 900.
Common rumor said II. N. Smith was
short 40, 600 shares, which will involve
him to greater extent than Daniel
Drew. The opinion was freely expressed
on the street that he would not pay his
losses in full, but let his brokers
staEd the brunt of the contracts: 1t Is
said Drew was caught in the trap by a
device of Gould's, ingenious in it's
way. Gould went to Drew few weeks
ago and suggested the possibility OF
singing the street in Erie, in which
transaction the latter was to appear az
bull. Drew joined in with the idea,
and went to work secretly to buy up
large blocks of Erie, locking them up
IN safes as fast as purchased. The stock
Of this market was soon gobbled up,
and, as consequence, the price Of
Erie began to advance. Gould also
bought Erie largely at low figures on
the streets, but abstained from pur.
chasing any when it began to adj
vance. The stock rose to SCI, and
Gould unloaded his entire interest
upon Drew, thereby netting a consid-
cradle profit. Drew, ignorant of the
bad faith of his ally, and wondering
at the large quantities of Erie stock
which continued to flow in as he kept
on purchasing went it alone, and was
making fair progress in building the
market on his own account, when
Gould turned a new cerd. In some
way he become acquainted with the
fact that the Harry T. Clark, August
Schell and Vanderbilt party .gener.
ally were endeavoring to obtain con-
troll of the Chicago and Northwestern
stock in order 10 get the road into
their own hands, and supply the mis-,
sing link in the great railroad chain
to the West. He thereupon
formed a coalition with the North.
western clique, and, going to. Drew,
who still supposed he was helping ia
bull Erie, suggested that as a blind to
their real operations it would be good
plan to go short in Northwestern and
thereby throw the street off the scent.
Drew, relying upon the judgement OF
his quondam associate in Erie, acqui-
esced In this arrangement, merely say.
ing he guessed it was safe to go short
of Northwestern, and it might tickle
the boys to speculate in something new.
His brokers executed his orders, and
the design was accomplished. The at
tentiCn of Drew became absorbed in the
success of the Erie. bull movement,
and while he was watching the
rise of the stock he raid little attention
to Northwestern. Gould found that
Drew was trapped, and kept away, oc
cupying his leisure moments in engi.
neering the rise. Friday night Drew,
speaking to Times reporter, and still
entertaining some hopes of decline in
Northwestern, remarked loosely, 81
heard Northwestern has risen." Yes
terday, at the close of Exchange, when
Northwestern reached 23O, the remark
was made to Drew: Northwestern il
rising" 8. Rising responded Drew,
rising, why it has riz.' Drew, real:
izing the per6dy of Gould, fully, yes
terday, sold out tie Erie stock, which
he bought to skin the streets, and, it is
supposed, will use tho proceeds to set.
tie up with the successful parties. He
also unloaded a large amount Of
Wabash and various other stocks. II
is expected he will settle on Monday.
At the Fifth Avenue Hotel last night
there was considerable excitement
among bankers, merchants and brokers,
caused by various reports which were
circulated relative to the arrest 'o1
Gould, and its connection with the Chi
cago and Northwestern corner. The
story, as it gained circulation, was thai
the Erie company had determined tt
arrest Gould again, that he might bt
held in greater bail than one million
This WAS contradicted in several quar-
ters, but there seemed to be no ade
quate grounds either for the assertion
or denial. Watson, President OF tn.
Erie, stated that it was the intention
to nave the bail made large enough t.
in some way guard against Gould IS run
ming away, but that was his only OBJ
ject, and totally disconnected witt
stock jobbing. Watson thought thai
one million was sufficient bail for tb.
present, although he deprecated til,
custom of diminishing bail, as the pro
portion of a defalcation may increase
There is much interest manifested con
corning the events of tomorrow il
Wall street, and the anxiety in regart
to the course of the market is intense.
The World says: We are greatly
mistaken in the character of Mr.. Wat
son if, having once grappledwith this
crying curse to our country in the PEI
son of one of its most notorious repre-
sentatives, he does not keep his holi
with bulldog tenacity until he Ia
brought his quarry to the earth"