witnessed an endless
succession of stock-market exploits both large and small. In the
spring of 1866, however, Drew found an opportunity to achieve a real
masterpiece in manipulation. The stock of the Erie road was then selling
at about 95 and the company was in pressing need of funds. The treasurer
came to the rescue as usual and made the necessary advances on adequate
security. The company had in its treasury a considerable amount of
unissued stock and had also the legal right to issue bonds to the extent
of $3,000,000 which could be converted into stock. Drew took these bonds
and the unissued stock as security for a loan of $3,500,000.

It so happened, naturally, that Drew was soon heavily short of Erie
stock in Wall Street. The market was buoyant; speculation was rampant;
and the outside public, the delight and prey of Wall Street gamblers,
were as usual drawn in by the fascination of acquiring wealth without
labor. All this time our friend, Daniel Drew, was quietly selling Erie
stock and closing contracts for the future delivery of the certificates;
and he was doing this at rising prices. As the days went by, his grave,
desponding manner grew more and more apparent. Erie stock continued to
rise. In the loan market its scarcity became greater hour by hour.
The rumor began to spread that "Uncle Daniel" was cornered. His large
obligations for future delivery must be met. Where was the Erie stock
to come from? The stock continued to soar, and Treasurer Drew seemed to
become more and more depressed.

Then the blow fell. Drew laid his hands on the collateral which he held
for his loan to the Erie. In the twinkling of an eye his $3,000,000 in
Erie bonds was converted into Erie stock, which he proceeded to dump
in Wall Street. Eric quotations fell from 90 to 50. Every one at
last realized the trap--but not before Daniel Drew had pocketed a few
millions in profits.

By this time Drew had come to be looked upon as a stock operator to be
both admired and feared, and this incident took its place in Wall
Street history as a brilliant coup side by side with Vanderbilt's Harlem
Railroad and other celebrated exploits. It was soon followed, however,
by much more sensational events. We have seen that the portentous figure
of Vanderbilt was just at this time looming up in the railroad world,
and Vanderbilt had his own theory of the management and financing of
railroads. It was inevitable that he should clash with Drew. He was a
fe