Daniel Drew Biography: A Rising Talent in the World of Cricket

Daniel Drew

Daniel Drew, a 19th-century “robber baron” figure.

Daniel Drew (1797-1879) was a powerful 19th-century financier known for his involvement in cattle trading, steamship ventures, and Wall Street. His controversial methods and ambitious schemes left a lasting impact on American business history, shaping the financial landscape of his time.

Early Life and Humble Beginnings

Born on July 29, 1797, in Carmel, New York, Daniel Drew faced early hardship when his father passed away, leaving the young Drew to support himself. This adversity fueled his drive for success, and he began learning the cattle trade on his family’s farm, building a foundation that would later define his entrepreneurial path.

Key Milestones Description
Birth Daniel Drew was born on July 29, 1797, in Carmel, New York.
Father’s Death Drew’s father, who owned a small cattle farm, passed away when Daniel was 15 years old.
Early Experiences Drew’s knowledge from the family farm guided his entry into the cattle trade.

Cattle Trading and Entrepreneurial Spirit

Following a brief stint in the U.S. Army during the War of 1812, Drew launched his entrepreneurial journey in the cattle trading business. Recognizing New York City’s growing demand for beef, he transported cattle from nearby counties, making a name for himself in the city’s thriving cattle market.

Cattle Trading Milestones Entrepreneurial Achievements
Transported cattle to New York City for sale Built a thriving cattle-droving business
Leveraged his knowledge of the cattle industry Diversified his interests beyond cattle trading
Capitalized on growing urban demand Established a reputation as a skilled entrepreneur

Venturing into the Steamboat Business

In 1834, Daniel Drew expanded his business horizons by entering the steamboat industry. Investing in a Hudson River vessel, he recognized the lucrative potential in this industry. His success in growing his fleet quickly made him a significant competitor to the established Hudson River Steamboat Association, led by Cornelius Vanderbilt.

Competing with Cornelius Vanderbilt

Drew’s competitive spirit was evident as he engaged in a high-stakes rivalry with Vanderbilt. He established several profitable steamboat lines outside New York City, demonstrating his tenacity and entrepreneurial acumen. This competition highlighted his role as a key player in the steamboat industry of the 19th century.

Metric Daniel Drew Cornelius Vanderbilt
Steamboat Lines Operated Multiple profitable lines outside New York City Hudson River Steamboat Association
Competitive Tactics Relentless pursuit of market share Used dominance to maintain control
Overall Business Acumen Demonstrated keen entrepreneurial spirit Steamboat tycoon with industry influence

Wall Street Brokerage and Railroad Investments

In 1844, Drew entered Wall Street by founding Drew, Robinson & Company, a brokerage specializing in railroad stocks. His expertise in finance helped the firm become one of the top traders in railroad stocks, solidifying his reputation as a leading financier in 19th-century America.

Founding the Drew, Robinson & Company Brokerage Firm

With a focus on the rapidly expanding railroad industry, Drew’s firm quickly gained prominence. The strategic investments made by Drew, Robinson & Company allowed him to wield significant influence on Wall Street, establishing him as a powerful player in the financial market.

Directing the Erie Railroad and New York & Harlem Railroad

Beyond his brokerage, Drew held directorial positions at major railroad companies, including the Erie Railroad and the New York & Harlem Railroad. These roles gave him considerable power to influence stock prices, allowing him to further expand his financial empire.

Business Ventures Key Achievements
Founding of Drew, Robinson & Company Top brokerage firm specializing in railroad stocks
Director of Erie Railroad Increased financial influence through stock price manipulation
Director of New York & Harlem Railroad Expanded his influence within the railroad industry

The Erie War: A Notorious Chapter in Business History

In the 1860s, Daniel Drew was a central figure in the infamous “Erie War,” a financial battle against railroad magnate Cornelius Vanderbilt for control of the Erie Railroad. Drew joined forces with James Fisk and Jay Gould in an effort to outmaneuver Vanderbilt using controversial tactics.

Stock Manipulation and “Watered Stock”

The Erie War involved the use of “watered stock,” a tactic that entailed issuing unauthorized stock to dilute Vanderbilt’s holdings in the Erie Railroad. This strategy prevented Vanderbilt from gaining full control of the company and cost him millions. The move highlighted Drew’s willingness to leverage any financial tactic to maintain control.

Key Figures Roles in the Erie War
Daniel Drew Financial strategist, central figure in “watered stock” scheme
James Fisk Drew’s ally, actively involved in stock manipulation efforts
Jay Gould Conspirator in the Erie War, played a key role in strategy execution
Cornelius Vanderbilt Rival railroad magnate, targeted by Drew, Fisk, and Gould

Impact and Legacy in American Business History

Daniel Drew’s life as a 19th-century businessman is both celebrated and criticized. Known for his aggressive and often ruthless tactics, he left an indelible mark on American finance and industry. His role in the Erie War highlighted the lengths some businessmen of his era would go to achieve success.

Controversies and Lasting Lessons

Drew’s controversial methods, from stock watering to aggressive competition, serve as a cautionary tale of unchecked ambition. His story underscores the need for regulatory oversight in financial markets and has influenced future policies aimed at preventing such speculative practices.

Legacy Aspect Impact
Innovative Financial Strategies Introduced practices like stock watering that, while controversial, highlighted gaps in financial regulation
Influence on Wall Street Helped shape the financial landscape of the 19th century and set precedents in market competition
Lessons on Ethics Showed the consequences of prioritizing profit over ethics, influencing future business standards

Financial Downfall and Bankruptcy

Daniel Drew’s fortunes took a sharp turn for the worse after he was betrayed by his former allies, Fisk and Gould. The two manipulated the Erie Railroad stock, causing Drew to suffer a massive $1.5 million loss. This misfortune was compounded by the Panic of 1873, which led to a dramatic financial crash.

Betrayed by Fisk and Gould

Once influential and successful, Drew’s downfall stemmed largely from his betrayal by Fisk and Gould, with whom he had previously conspired in the Erie War. The financial maneuvers of his former allies left Drew in a precarious financial situation, marking the beginning of his decline.

The Panic of 1873 and Bankruptcy

The financial crash of 1873 wiped out most of Drew’s wealth. With mounting debts and no assets left, Drew filed for bankruptcy in 1876, marking the end of his career and financial empire. His experience is a powerful cautionary tale in the history of American finance.

Controversial Legacy and Dubious Records

  • Drew’s controversial tactics, like “watered stock” and stock manipulation, made him a polarizing figure.
  • The accuracy of certain details about his life remains unclear, partly due to dubious sources such as Bouck White’s fabricated autobiography.
  • Despite these controversies, Drew’s influence on Wall Street and 19th-century American finance remains significant.

Philanthropy and Religious Contributions

Despite his ruthless business reputation, Daniel Drew was deeply religious and philanthropic. A devout Methodist, he founded and supported churches, educational institutions, and charities.

Religious and Educational Contributions

Drew established the Drew Theological Seminary in Madison, New Jersey, in 1867. This institution played a key role in Methodist education. He also founded the Drew Seminary for Young Ladies in Carmel, New York, in 1866, showing his support for women’s education and empowerment.

Infamous Quotes and Wall Street Lore

Daniel Drew left a lasting impression on Wall Street, not only through his actions but also his words. Known for quotes like, “He who sells what isn’t his’n, must buy it back or go to pris’n,” Drew’s sayings reflect the risks and tactics associated with short selling and his era’s cutthroat financial practices.

FAQ

Who was Daniel Drew?

Daniel Drew (1797-1879) was a key figure in the 19th-century “robber baron” era. He started as a cattle trader and steamship operator. He then became a top trader in railroad stocks in the U.S.

Where was Daniel Drew born and what were his early life experiences?

Daniel Drew was born on July 29, 1797, in Carmel, New York. His father owned a small cattle farm. When Drew was 15, his father died, starting his journey to become self-reliant.

How did Daniel Drew start his entrepreneurial career?

After his father’s death, Drew joined the U.S. Army during the War of 1812. He didn’t see combat. After the war, he worked with a traveling zoo and then built a successful cattle business. This laid the groundwork for his future success.

What was Daniel Drew’s involvement in the steamboat business?

In 1834, Drew bought a share in a Hudson River steamboat. He expanded his operations, competing with Cornelius Vanderbilt. Drew’s success outside New York City showed his business skills.

How did Daniel Drew become involved in Wall Street and the railroad industry?

In 1844, Drew started Drew, Robinson & Company, a top railroad stock trader. He became a director of the Erie and New York & Harlem Railroads. He used these roles to invest in the railroad industry.

What was the “Erie War” and how was Daniel Drew involved?

In the 1860s, Drew was part of the “Erie War” over the Erie Railroad. He worked with James Fisk and Jay Gould to issue false stock. This move blocked Cornelius Vanderbilt and caused significant losses for him.

What led to Daniel Drew’s financial downfall and bankruptcy?

Drew’s downfall came when Fisk and Gould betrayed him, causing him to lose $1.5 million. The Panic of 1873 also hurt his wealth. By 1876, Drew was bankrupt, with debts over $1 million and no assets.

What is the controversy surrounding Daniel Drew’s legacy?

Drew’s legacy is controversial, with many details from questionable sources. His use of “watered stock” is a major part of his reputation. Despite this, he is remembered as a key figure in the “robber baron” era.

What were Daniel Drew’s philanthropic and religious contributions?

Drew was a devout Methodist who supported several churches and educational institutions. He founded the Drew Theological Seminary and the Drew Seminary for Young Ladies. These efforts showed a different side of Drew.

What are some of Daniel Drew’s infamous quotes and Wall Street lore?

Drew is known for saying “He who sells what isn’t his’n, must buy it back or go to pris’n.” This quote, along with stories of his business tactics, has made him a part of Wall Street lore.

million and no assets.

What is the controversy surrounding Daniel Drew’s legacy?

Drew’s legacy is controversial, with many details from questionable sources. His use of “watered stock” is a major part of his reputation. Despite this, he is remembered as a key figure in the “robber baron” era.

What were Daniel Drew’s philanthropic and religious contributions?

Drew was a devout Methodist who supported several churches and educational institutions. He founded the Drew Theological Seminary and the Drew Seminary for Young Ladies. These efforts showed a different side of Drew.

What are some of Daniel Drew’s infamous quotes and Wall Street lore?

Drew is known for saying “He who sells what isn’t his’n, must buy it back or go to pris’n.” This quote, along with stories of his business tactics, has made him a part of Wall Street lore.