The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1876-03-21
The gntland daily Globe,
TUESDAY, MARCH 81, 1876.
Especial Correspondence OF the Troy Daily
Times.l
THE HERMIT'S LETTER.
Drow's Failure-The Broken Bank Of the
State Of New York-The Cashier who Ruin
ed it-Drew's Career-Stock Operations, etc.


was said to Cesar, so might it be said to
the fallen giant of the stock market. The
failure of Daniel Drew, though not unex-
pected, is one of the painful features in
the chronicles of Wall street because il
threatens the existence of the Drew theo-
logical seminary. To support this nstitu-
ton, now that its chief patronage is gone,
will require liberal subscriptions, and
whether they can be obtained is serious
question. March has brought the failure
of the Bank of the State OF New York,
whose age and liberal capital gave it
standing among the best institutions of the
kind. Of the eighty hanks in this city
there were but three of larger capital 1t
had gone through the protracted depression
of 1899 to 1874, through the panics of 1857
and 1878, and now when money can be had
This seems very strange.
BANK AUTocRAOY.
The failure will demonstrate the danger
OF leaving banks in the hands of one man.
Vice. President Patrick had the entire con-
troll of this instition, and he almost ruined
it by loans 30 injudicious as to be fraudu-
lent. Only short time ago Cashier Tain
tor rI,ined the Atlantic bank by specializing
in stocks. 1t is found by experience that
the boards of directors, often SO proudly
advertised, are mere sham. The presi-
dent or cashier rules the institution, and
those who buy stock must bear In mind
the fact that they place their funds in the
hands of an autocTat. The fact is the fail
ure of so old and so respectable an lnstitu
ton as the Bank of the State of New York
will impair the value of bank stock ia a
very serious manner. The capital of this
institution Is greater than the entire aggre-
gate of all the broken banks in this city
during the past twenty years. Never has
any institution failed here cntailing so
heavy loss to the community. This will
be sufficient reason for the damage done
to banking values. 1t is also an illustration
Of the nature of bank statements. These
being made under oath are by some sup
posed to be trustworthy, but it is now
evident that cashiers have way of swear.
ing to almost anything. Among the assets
of the bank referred is check drawn by
Vice-P President Patrick for $4,000 This
had been paid, and yet the check was
counted among the. cash on hand. If it
were proper to reckon this 'paid check"
among the bank assets, then it would be
right to reckon all other paid checks which
might be drawn and left as security. The
entire cash account might be made up of
such checks, and yet be given in an affidavit
"ca,h on hand conveying the idea of
greenbacks. Hereafter it would be we'll to
require some explations of the term 'cash
on hand"
TIE vICK-PRRsIDENT.
This man Richard Patrick who has fool
ed away so much of the capital of this once
solid institution, is a former bankrupt
hardware dealer of Pearl street. Six years
ago he failed in trade, but his branches in
California have been kept in operation, and
he settled with his creditors in manner
which enabled him to obtain the position
which he has so grossly abused. Those who
knew Richard Patrick we'll had but little
confidence in him. If any one inquiries how
such men get into important offices, the
reply is that family influence is often su-
perior to all the claims of honesty and ex-
perience. Such an illustration is found IN
the recent election of Carson Brevoort to
the SUPPLEMENTARY of the Astor library
There is Frederick Saunders, who has
labored for half life time as assistant
librarian, and who should have been made
master of the institution, but who is merely
promoted to first librarian, while Brevoort
Is placed above him as superintendent.
Brevoort wanted employment and had in
fuence. The same could have been said of
Rchark Patrick. His incumbency cost
the bank nearly million. and it will re-
quire ten years of good management to re-
store the loss. Among the new directors
is the name of Lawrence Turner, who has
seldom been before the public. He is
South street merchant, and was brought up
with Moses Taylor, who was the best bus
mess man that street ever contained. Moses
is now president of the City bank, whose
stock is worth 300. If his former clerk
win copy his example in finance, the Bank
of the State of New York may be brought
up TO par II is the only Wall street bank
that has failed since have been acquainted
with the place A few years ago 1t erected
grand banking house in William street,
and this gave 1t a look of importance which
it might have retained had it not been for
the folly of its autocrst.
THE ENDOWMENT GAME.
Daniel Drew is said by those who know
him to be one of the most tricky men that
ever infested Wall street. He was always
trying to corner some one. His head was
full Of schemes, and he endeavored to work
on the fears and hopes of others 80 as to
lead them into his snares. Mankind was
to him only valuable as dupes. To such a
man reputation for piety was desirable,
while to be ranked among philanthropists
were contamination devoutly to be wish
ed. Such rank was obtained by giving
his note for $250,000 to endow the Drew
theological seminary This deed gave an
eclat to his name such as no Wall street
skinner ever enjoyed. The interest on this
sum is $l7, 500 year, q large sum, and yet
small when compared with the influence it
carried. 1t was an effectual blind to the
public, and even in Wall street it was not
without avail. 1t gave an air Of sanctity
about "Uncle Daniels" operations, beneath
which he could shave with increased facil-
ity, and without exciting suspicion. 1t is
now said that the Drew theological endow-
ment was only a canayd There is no
longer any need of keeping up the interest,
and as for the principal-they have his note
for it, There is no doubt that Daniel
Drew supposed himself to be the deepest
man in Wall street, as he certainly was the
Oldest He has been active in the market
Tor thlrty-tnree years, Out IL is doubtful II
he were as happy during this time as when
he stood behind his bar at the Bulls Head
and dealt out drinks to the cattle dealers.
UPS AND DOWNS IN LIFE.
First farm boy, then wandering of
with caravan, and then first class show
man. For all this his tall, powerful frame
and unusual strength we'll adapted him.
Then in the cattle trade and landlord of the
Bulls Head, the most profitable tavern In
the state. Here the cattle market wal
held money flowed freely ; the bar trade
was stream of wealth, and by the time the
former Snowman had reached forty he wal
estimated at 100000. He was then worth
nearly as much as Vanderbilt, who at that
time was merely conducting the Staten Is
land ferry, and WAS utterly unknown oat
side the pier where the boats landed. Al
that time Edward NJ. Robinson, a young