danderson

The Life of Daniel Drew !  **By: Devon Anderson** 

 Drew, born in New York, became a cattle drover and made a fortune. In 1834 he went into the steamboat business and began a bitter and unscrupulous competition with Cornelius Vanderbilt. In 1844 Drew founded a Wall Street firm, becoming the first notorious speculator. His dishonesty and corruption were revealed to the public in the battle for control of the Erie railroad that became known as the "Erie War" (1866-68). Drew eventually lost his fortune and died a despised and illiterate man. During his life, he founded several Methodist churches and schools, including Drew Theological Seminary. Drew became one of the directors of the Erie Railroad. His outrageous manipulation of the stock and company assets set the standard for the era. Nevertheless, Drew was outmaneuvered by Vanderbilt and a partner in an 1864 battle of Erie stock. Drew lost heavily and became intent upon punishing Vanderbilt.  With the assistance of Jay Gould and James Fisk, Drew managed to inflict his revenge on Vanderbilt in the Erie War, an episode that ruined thousands of investors. Drew’s victory was not lasting; his partners betrayed him by manipulating the Erie stock upward, ruining, Drew who had shorted it. The Panic of 1873 and the following depression completed his downfall. His remaining years consisted of loneliness, bitterness and dependence upon his son.

Drew’s life presented a strange contrast. Totally without scruples in his business dealings, Drew nevertheless regarded himself as a devout Methodist. He was responsible for founding Drew Theological Seminary, but was unable to complete other philanthropic pledges on account of bankruptcy.

When in the height of prosperity his fortune was estimated at from $5,000,000 to $15,000,000. In 1866 he was treasurer of the Erie railroad company, to which he lent the sum of $3,500,000, receiving as security $3,000,000 of shares of unused stock and $3,000,000 of bonds convertible into stock. He began to sell the stock "short" at the prevailing high price, Cornelius Vanderbilt and his adherents being the purchasers. When the contracts matured Drew converted the bonds into stock and threw into the market the 58,000 shares of stock that he possessed. The matter resulted in litigation, which drove Drew and his party to New Jersey, where they remained until the case was settled. Drew afterward lost heavily, and when the firm of Kenyon, Cox & Co., of which he was a partner, failed, he was compelled to make an assignment and ultimately to go into bankruptcy. He gave liberally to Methodist educational institutions, founding the "Drew ladies' seminary" at Carmel, and giving large sums to Wesleyan University, Middletown, Conn. In 1866 he gave $250,000 to found the Drew theological seminary of Madison, New Jersey, and increased this sum by successive donations to nearly $1,000,000. 