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164 BETWEEN THE OCEAN AND THE LAKES
one-half of the profits that might result from any proceeding which, if carried to its projected len
excess over 72 cents on the dollar for which the would have scattered widespread ruin and disaster
bonds were sold. The bonds were disposed of among hundreds—was sufficient to bring down upon
through the houses of Fisk & Belden, and Smith, his head an avalanche of indignation which would
Gould, Martin & Co., at 79 and 80. Drew swore have driven a more sensitive man into hiding. His
further in his affidavit that the defendants, Gould, confession of past misdeeds that he might drag his
Fisk, and Lane, had compromised the claim the Erie former Erie co-workers into the mire also reacted
Railway Company had against him for the 28,000 against him, although he had told nothing which
shares of stock by the payment by him of $1,000,000 common rumor had not long before settled upon as
and the further consideration of his resigning from the probable truth of the Vanderbilt-Drew contest
the management. He charged them with having and its settlement. Every one knew that these things
bought the resignation of President Eldridge in favor had not thus been put in the form of sworn testiof
Gould by taking from him $5,000,000 of Boston, mony by Drew for the purpose of relieving his con-
Hartford and Erie bonds at 80; that Gould was science or to disinterestedly aid the ends of justice.
Treasurer as well as President of the Company; that This tardy coming forward to lend a helping hand to
they had abolished the Board of Audit and placed the end that suffering Erie might be rescued from
Fisk in entire charge of that Department as Con- her alleged despoilers, now that he was no longer
trailer of Accounts; that they had received $40,000,- one of them, was proof positive that something had
000 by over-issue of stock; that they had paid gone wrong in Daniel Drew's speculative calcula-
$850,000 for the Grand Opera House; $1,500,000 tions, and that he was playing a bold and desperate
for nine houses adjoining it in Twenty-third Street; game to extricate himself from a precarious situation.
$300,000 for Lake Erie steamboats; $300,000 for There were rumors a-many as to what his situation
Buffalo real estate, which was mostly in the names was, and when the facts came out later, the rumors
of Directors; and that Gould, Fisk, and Lane had were found to have been not far from the truth.
received bonuses on these purchases amounting to
$1,500,000. Drew also affirmed that he had con- Judge Sutherland, on the strength of the strong
spired with Gould, Fisk, Lane, and others of the petition of Belmont and Lucke, and the affidavit of
Erie Board to lock up money to make it scarce on Daniel Drew, issued an injunction against Jay Gould
the Street, so that they might reap a great profit as President, and all of his associates in the Erie
from speculation in Erie, and that he had put management, restraining them from exercising any
$1,000,000 in the pool, which he subsequently drew authority in the management of the Erie Railway
out, and then severed his connection with the clique. Company until further order of the court, and
directed them to appear before him on November
These developments intensified the panicky con- 20th, to show cause why a Receiver should not
dition of Wall Street. The lock-up of money had be appointed to take charge of the Erie Railway
been the one great disturbing and threatening ele- Company.
ment since the unsettled state of affairs began months Now it was that not only Wall Street but the
before. With an easy money market the dangers of world at large began to recognize the amazing genius
the formidable onslaught on values and contracts of Jay Gould. He had embarked in an undertaking
could have been guarded against to a great extent, of the greatest magnitude. At the start he had
and operators would not have stood for months asif adopted heroic measures. He had at one stroke
in momentary expectation of a financial earthquake; added millions to the capital stock of the Erie Railso,
for Daniel Drew to deliberately and shamefully way Company beyond the amount fixed by law. He
declare, under oath, that he had been a willing party had converted bonds into stock through the firmof
to a conspiracy which had for its ends the damming brokers of which he was the head, and as President
of the natural monetary current of Wall Street—a and Treasurer of the Company, and Chairman of its