The sun. [volume] (New York [N.Y.]) 1833-1916, 1892-12-03

Commodore Vanderbilt Meets tho New Fl.
nancier in n Battle With Daniel Drew.

Commodore Vanderbilt Meets tho New Fl.
nancier in n Battle With Daniel Drew.
1t was early In his new career as a railroad
operator that Mr.. Gould had his memorable
connection with the Erie Railroad. He was q
young man literally beginning a new career.
and with his great future as unsupported by
himself as by tho public He had made money
and attracted attention by his operations in
small railroads in the northern part Of this
state. He had joined the firm Of Smith. Gould
& Martin in this city. Daniel Drew and Com
modore Vanderbilt were active and prominent,
and great operations in railroads generated
uncommon interest in those securities and In
the Wall street market. Comm odoro Vander-
bilt had hesn rapidly pilinG M the properties
that he merged into tho New York Central
system, The Central. the Harlem. and the
Hudson River roads had all become his. and
he was looking about for chance to conquer
whatever else competed with his properties or
interfsred with his mastery OF tho railroad
situation. He could not get tho Penn sylvanis.
but there was possibility OF getting Erie
Tho Erie road had failed to meet tho interest
on its mortgages in 1859. and had gone into
tho hands OF q receiver. Daniel Drew. who
nfterward won tho sobriquet OF tho "Specu-
latinG Director" WAS In the directory OF the
Eric Railway. and had been trading in its
"A sharp. long-headed man. and a Spectator
pure and simple. He had been watching tho
budding career OF Jay Gould. and Gould soon
became member OF the Eric directory. Com
modors Vanderbilt now made an effort to cap
ture that railway. and found himself in bat
tie against Drew and Gould. battle that has
no parallel In the story OF such struggles.
During 1857 the old Commodore began buy
ing Erie stock. and at the next annual election
he secur ed some new directors in his own in
terest. Drew was left Off tho Board. and on
the same day went to Vanderbilt and begged
him. with tears in his eyes. not to mako beg
gar oft,im. He played his part SO vol that
the Commodore brought about resignation,
and Drew went back upon tho Board to work
for the Vanderbilt interest and boom the
stock. OF course, Drew was then traitor to
Vanderbilt in his heart. and proved 80 by his
actions afterward. In what followed Drew
ceased to DO a leader. for Gould and Col.
James Fisk. Jr.. appeared on tho scene. the
one with far moro brains than Drew and tho
other with imDudsnce enough to stop loco
motive with his cheek.
Vanderbilt went into Wall street to buy oil
the stock OF the Erie. but his opponents set
the Erie printing presses at work grinding
out new volume OF stock. and Mr.. Van
derbilt resorted to the courts. On his petition
ustice Barnard granted temporary iniunc-
ton restraining Drew and his brother dlrec-
tors from paying tho interest on S350O.OOO
borrowed from Treasurer Drew In 1856. Fur
thor inJunctlons IoIlowed. and new issues OF
stock were forbidden
Drew could not make moro stock. and must
return the $4,000 shares which he had
dumped on the market. Drew and Gould
continued to sell short. Tho market kept
ON rising. The Drew men went to Bling
hamton and Justice Balloon stayed all
proceedings BY Barnard. Frank Work was
Nanderbilt's representative in the Erie Board.
and Justice Balloon suspended Work as d.
rector. But Vanderbilt began other suits in
the name OF Richard Schell. and Justice In
graham checked Justice Balloon by torbidding
less Director Work was restored. Tho road
needed money again. and the committee voted
70 issue convertible bonds for $lOOO0OOO. and
thus 100 900 shares OF now stock were hanging
over the head 0f Vanderbilt. The COMMITTEES
had voted to sell these bonus at not less than
72t.: So.OOO.OOO were offered at once and the