The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1872-04-16
From the New York Sun, April 81
STUPENDOUs STOCK RISKS.
Daniel Ereyy's Fifty Thousand
Shares of Erie.
Two Million Dollars Put Up In
Margins millions 10 be Made or
Lost OH the Turn of ~ Die.-A eu-
rious story OF " all street Tricks
and Traps.

"o MitEi0Ea l1OttaTS Fut kp IN
| Margins millions 10 be Made or
Lost OH the Turn of ~ Die.-A e,u-
rious Story OF " all street Tricks
and Traps.
Daniel Drew's big sale of Erie stock
is still the absorbing topic On the street.
The veteran operator has laid out to
lose or win vast amount of money
The following are the particulars: On
| Tuesday, March &c, when Erie was 60,
Mr.. Drew sent to Mr.. + II. Beiderman
| to ask if he (Beiderman) knew of any
body who wanted 10 buy Erie Mr
Reiderman is a brother in-law of both
members of the firm of Bischoffsheim
d Goldschmidt lie went around to
see Mr.. Drew, and Uncle Daniel made
his proposition, namely, to sell 10000
shares of Erie at 55, seller this year, fiat
Mr.. Beiderman thought he knew of
somebody who wanted about that quan-
tity Of stock, and he said he would find
out. Thereupon he telegraphed to finan
ciers in London, who are not named,
but who arc supposed TO be
BIsCHoFFsHE1M & eoLDscHMIDT
Mr.. Duncan, Of Duncan, Sherman &
Co, was III London, and in behalf Of
Bischohsheim & Goldschmidt he tele-
graphed to this city an acceptance of
the offer, the telegram reaching New
York on Wednesday last, saying "Close
the contract with Drew"
At 3 p. M. of the same day Mr..
Beldertnan met Mr.. Drew in WhiteleY
" Nelson's office, in Exchange plac&
and there it was agreed to ratify the
contract. Mr. Drew then sent the fol-
lowing note:
New YORK, March q, 1872.
Messrs. Duncan, Sherman G Co.
GENTLEMEN: have this day sold,you
$4,000 shares OF Erie stock, seller this
year at my option, at So, fiat. l will
execute the contract to morrow.
DANIEL DREW.
Within half an hour the following re-
ply was received:
New YORK, March q, 1872.
Daniel Drew, Esq.
DEAR SIR: We have this day bought
from you $4,000 shares of Erie stock,
seller this year at 55, fiat. We will to-
morrow execute contract and name a
trust company with which to deposit
ten per cent.
DUNCAN, SHERMAN & Co.
pITTING TIP TIE MONEY
On Thursday, March %, the contract
was drawn, Messrs. Martin Il Smith be-
ing the attorneys for Mr.. Drew, and
Messrs. Barlow, Larocque q McFar-
land for Duncan, Sherman & Co. The
contract was executed in Duncan, Sher,
man Il Co.'S Office 1t stipulated that
the transactions should be governed by
the rules of the New York Stock Ex-
change, and named as the depositary
the United States Trust Company, Ten
per cent. was called on the day the con-
tract was executed, each party depositing
100000. On Saturday last Duncan,
Sherman d Co. called on Uncle Daniel
for al additional quarter million of dol
lars. which Mr.. Drew promptly depos-
tied; Duncan, Sherman Il Co. making q
like deposit. On Monday Mr.. Drew
was called on for another S250,000.-
The money was promptly forthcoming,
and Duncan, Sherman & Co. put up the
same amount, making S1,O00,0O0 put up
by each; $4,000, 900 In all
When Mr.. Drew offered to make the
sale Erie was quoted at IS. When the
deposit of Thursday was made Erie was
81 at the time of the Saturday deposit
63, and when the deposit Of Monday
was made Erie was 81. Yesterday at
4 o'clock p. M. Erie was quoted at 6l4
THE CHANCES OF WINNING Ok LOSING.
The money put up margins the stock
up to Is and down to 35. Should Erie
90 above 70 Mr.. Drew must put up an
additional margin. 1t is easy to see
that in the event Of a corner in Erie
a possibility, considering the immense
amount of stock in the market-sheuld
the stock 60 to, say 100, it would re-
auire a large amount of money to keep
tHe NlaI Slh Soou.
Should the stock 60 below 40, the
other party would be called on for ad-
ditional margin.
Relative 20 this transaction there are
as many opinions as men in the street.
Frank Work is reported to have said
that Uncle Dan would make million
of dollars by the operation.
MR. DREW FEELS PERI ECTLY CONTENT
with his bargain. He said before he
signed the contract that he would not
take 100000 for it. He is said TO have
been offered S250,000 for the contact,
though this is mere rumor, A gentle
man with whom the Sun reporter con-
versed, informed him that Bischoflshem
and Goldschmidt had sent private cir
cular to London bankers, giving the
following figures:
Erie earnings, S25,OOO.OOO
Oneratino exnenses. 1000 600