DREW, Daniel [1797-1879] -- American capitalist, philanthropist

He began active life as a cattle dealer, but soon became connected with steamboat building, and constructed many of the Hudson River boats. Still later he became identified with railroad enterprises, and was a prominent speculator in Wall Street. 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 [NY], 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. APPLE

While a cattle dealer he quickly acquired a reputation for sharp dealing and was known to feed salt to his cattle and then let them drink themselves full in order to increase their weight; this practice became known as "stock watering" and Drew was its master.

In a later incident, Drew paid a visit to a New York club where brokers congregated. It was a hot day, and Drew took out a handkerchief to mop his brow. A piece of paper popped out of his pocket that he pretended not to see. After Drew left, the traders seized the scrap, which contained plenty of bullish information about the Erie railroad. The stock soared, and Drew began to sell the shares. As the news about Drew’s scheme emerged, the price dropped precipitously, allowing him to buy the shares back for a pittance and lock in a tidy profit.