Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1879-10-02

management. IN lSAu tue cobic Iiue
was established, Mr.. Drew being the larg.
est stockholder. The ST. John, the Dean
Richmond aud the Drew were built; the
line prospered. meeting with only two dis
asters-the burning OF the Isaac Newton
aud the sinking of the New World. When
the Hudson River railroad was opened, In
1852, Mr.. Drew refused to sell out his
stock. "lou can requisite your railroad
fares as you choose" said he TO the presi-
dent of the railroad company; but the
only way you can regulate NV steamboat
fares is to buy the Peoples Line. and this
| don't believe you have got money enough
to do" The opening OF the railroad only
served TO stimulate traffic, and the steam
boats carried as many passengers and as
much freigh, as they had before. Mr..
Dre~'s steamboat operations were not con-
fined TO the Hudson river. He controlled
the Stonington Li"e for twenty two years.
| aud established a profitable line OF steam
boats on Lake Chsmplsin.
Mr.. Drew entered Wall street in lst4.
| forming a copsrinership with his son-in-
law, Mr.. Kelly, and Nelson Taylor. which
| lasted ten years. The stock-broking and
banking business OF the firm was large,
and their credit during that stormy period
was very strong. After the dissolution OF
the firm by the death of his partners he be-
| Nant tue totht>s suu snft"u'>l oItiA1't
In wall street. The principal railroads
with which he was connected. were the
| Harlem aud the Erie. Ip tn. Harlem
corner" which Commodore Vanderbilt and
| John Tobin planned together Ia 1863. he
Was oui~itted. The stock which had been
| SOLD IN January ~ 30 was settled Tor In
June al -. Mr.. Drew u said TO have sur
| rendered about half a million 10 the tom-
modore In this corner. Ha had his re-
venge In the great Erie contest.
Mr.. Drews connection with the Erie
Railway began In 1883 and subsequently,
he became a director and treasurer. He
was good irieGd OF the ro.d In time OF
need. Once he guaranteed It's paper for
! si,5pVc, aud In 1877 he saved i from
| bankruptcy But he was also good friend
| to himself. HIS hdacisry position ensbled
| him To manipulate the stock. and he made
u the football OF the street lie VAS the
/ nrst great type OF tho speculative director.
10 tb. Spring Of lsG6. Erie was selling a,
% Tie treasury MAS empty. aud Mr..
| Dfss - unwilling TO advance any money
xtikout secarity. About - 90 shares OF
.toc. whish had never been issued. and
bond. tur o.. 90 90 wer. secretly placed
| 10 hi. hand. a. security Tor a loan OF S.
| DH.UsG. The company claimed the right
| OF issuing bond, convertible al the option
| VI the l0Abfr iUfO NtofAs Inc treasurer
was ''shprt" OF the stock and lu the teeth
| Of rising market was making new con
tracts for the delivery of Erie at curren,
rates. suddenly tue bonds Tor =. 900 90
were converted Into stock, and 500
shares were saddlcd upon the uususpecting
balls" The stock sank from % TO 80.
aud the Speculative Director was master
OF the field. Public morals were at so low
az cbb that this transaction was simply
coupled with the Harlem corner" as a
masterpiece OF speculation
At the suggestion Of Richard Schrll.
Commodore Vanderbilt formed an alliance
with a Knot OF spectators. who had con
trol OF the Boston. Hartford and Erie rail
road, aud the willy treasurer OF the Ere
Was threatened with court proceedings
based upon the oyer-lssue OF stock Mr.
Drew did not like the outlook. He called
upon Commodore Vanderbilt one evening.
and pFupO,-d a vse-.''oa Of he~s''','sr.
Inc Commodore read 10 him The law pa
pcis. "hlch aAd occn prepared ior service.
Aha hnAiiy 'hcy came 10 an understanding
ot "hlch the boston, Hartford and krie
managers were 10 be forced ooi oil the Erie
Directory, and Mr.. Drew was 10 lose his
seat temporarily and then regain II through
Tue forced resignation OF one OF the mem
oefs' lhe '"o allies were to cooperate In
giving The market an upward tendency.
and MI. Ore" Mas to assist the Commo-
uofe 10 gaming contfol oi the kre lhe
representatives OF the Central and the Erie
held long conference. but were unable 10
suggest a basis OF consolidation. Mr..
Drew IreAehery soon became apparent.
There was ohly one Thing iot Commodore
'ahderoli 10 do-'cofncr Mr.. Dre"
But 10 corner MI Drew, 1t was neces-
sary TO stop the Erie prlntIng press ms
tommodote ahaetbit attempted 70 DO oy
ihJancNohs' WINE Mr- Ore" defended MN
sell as oest ne couId by stays OF proceed
luss' Que Juuse ehJoihsi the tHe utec-
TOT, ifoni ISSUING any more STOCK An
other )1dxe ordered stay oil proceedings.
one J"ose Iofoaue meetings OF the Erie d!-
Eec'oss' Ahothet Jause ofdefed them 70
meet Ahd proceed win Their dulles One
Judge proh'bited conversion OF bonds Into
stock. Another Judge authorized the issue
OF additional stock. while the lIllgaiions
were falling into hopeless iangle, 5o,oO
shares OF new stock were issued and sur
repttiously placed upon the market. The
Commodore took them ali aud was ready
10 take as many more, when the irics was
discovered and kre suddenly ieli IRON 81
TO Il. The next day Judge Barnard ordeI-
ed the arrest OF the directors on proceed
lngs for contempt Mr.. Drew aud his allies
beat hAsiy retreat 10 jersey CITY, one OF
them carrying with him In n coach six mil
lions In greenoscks. Two OF the directors
were arrested, but FISK and Drew encamp-
ed AZ "fort Taylor opened railway
Office, divided pronts, and turned over
three millions and half Into the Erie
treasury. Commodore Vanderbilt With his
hundred thousand shares OF Erie, was left
TO sustain the market aud TO prevent
panic. He did TIL, with the aid OF Judge
Barnard. The battle was renewed in the
courts all along the line. There were in-
junctions and unter-.Djunctions, orders
OF arrest, contempt proceedings and ap-
pointments OF receivers. affidavits, srgu-
ments and appeals, all ending 10 hopeless
and mysterious maze Sir" said Judge
McCunn. when he was asked to issue a
wit OF hsbras corpus in the Erie proc-ed-
ings. Il would rather be nned thousand
dollars than have anything 10 do with the
scandal
While the Drew party were eneamped a,
Port Taylor" body OF fifty rowdies
crossed by the Pavonii Ferry and took
possession Oi the Erie depot. The Erie