as
directors of the Erie and ratified the lease. After that it was a simple
matter to divide the loot. The Erie was thus saddled with a $9,000,000
mortgage at seven per cent in addition to a further issue of capital
stock.

Following the first injunction another was now issued restraining
Drew and the Erie board from making any further issues of stock, by
conversion of bonds or otherwise, and also forbidding the Erie to
guarantee any further issues of bonds. An additional injunction forbade
Drew from having any transactions in Erie stock or fulfilling any
contracts until he had returned to the treasury the shares involved
in his loan transaction of 1866 and in the purchase of the worthless
Buffalo, Bradford and Pittsburgh road.

Matters now looked forbidding for Treasurer Drew. Instead of being
allowed to manufacture fresh Erie stock certificates at his own will, as
had been his habit for fifteen years, he was to be cornered by a legal
writ and forced to work his own ruin. But notwithstanding the apparently
desperate situation it was quite evident that Drew's nerves were not
seriously affected. Although he seemed rushing on destruction, he
continued day after day to put out more short stock, all in the face of
a steadily rising market. His plans, apparently, were carefully matured,
and he said that if the Commodore wanted the stock of his road he would
let him have all he desired--at the proper price.

As usual the Erie treasury was short of funds, and as usual "Uncle
Daniel" stood ready to advance all the money required--that is, on
proper security. There was but one kind of security to offer and that
was convertible bonds. No stock could be issued by the company for less
than par, but convertible bonds could be disposed of by the directors
at any price. A secret meeting of the executive committee was held,
at which it was voted to issue immediately and to offer for sale
$10,000,000 in convertible bonds at 72 1/2. Drew's broker at once became
the purchaser of $5,000,000 worth. In ten minutes after the meeting
had adjourned, the bonds had been issued, their conversion into stock
demanded and made, and certificates for 50,000 shares of stock deposited
in a broker's safe, subject to Drew's order.

A few days later came the injunction, and Erie stock began to soar
in the markets, in response to which "Uncle Daniel," who had been
industriously selling his many thousands of new shares, now determined
to bring up the re