Daniel Drew

Daniel Drew – Life, Career, and (Alleged) Famous Sayings

Explore the dramatic rise and fall of Daniel Drew (1797–1879), a legendary 19th-century American financier, railroad speculator, and “robber baron.” Delve into his biography, tactics, legacy, and attributed quotes.

Introduction

Daniel Drew is remembered as one of the most controversial figures of the Gilded Age of American finance. He was a bold speculator, a railroad manipulator, and a man whose fortunes soared and then collapsed. Born July 29, 1797, Drew embodied both the promise and peril of unbridled capitalism. While his methods drew harsh criticism, his life remains a compelling case study on ambition, risk, and the thin line between genius and ruin.

Early Life and Family

Daniel Drew was born in Carmel, New York, on July 29, 1797, to Gilbert Drew and Catherine Muckleworth.
His father owned a modest farm of cattle, but when Daniel was about 15, his father died. The family was left with limited means.

Drew received only rudimentary schooling in the rural district, and by many accounts was largely self-taught in business matters.

Shortly after his father’s death, Drew took an opportunity during the War of 1812: he served as a substitute for someone who paid another to avoid service. He did not see combat.

Afterward, he worked a variety of odd jobs (including with a traveling zoo) before settling on cattle droving—buying livestock in rural areas and transporting them to New York City to sell.

In 1823, he married Roxanna Mead, and they had children (notably daughter Catharine and son William Henry) in later years.

Youth, Early Ventures, and Rise

The Cattle Business & “Weighing Tricks”

Working as a drover, Drew mastered the logistics of moving livestock into New York. He is often associated with one trick: having cattle drink lots of water before weighing them, thereby inflating their apparent weight. This practice is sometimes linked (metaphorically) to the later concept of “watered stock” in finance.

From his profits, he gradually accumulated capital, bought agents, and scaled operations.

Move into Steamboats

In 1834, Drew purchased a share in a steamboat operating on the Hudson River.
He soon competed against Cornelius Vanderbilt and became involved in multiple steamboat lines on the Hudson, Long Island Sound, and Lake Champlain.
He also played with fare wars: lowering prices to undercut competitors, sustaining competition, then raising fares once competition subsided.

These ventures allowed him to diversify, expand his transport footprint, and build connections in capital markets.

Career and Achievements

Entrance to Wall Street & Brokerage

In 1844, Drew founded the brokerage firm Drew, Robinson & Company.
Through this platform, he began trading railroad and transportation stocks, and built reputation as a bold trader and manipulator.

By the 1850s, he had turned much of his attention to railroad stocks.

The Erie Railroad & “Erie War”

Drew’s involvement with the Erie Railroad began in the 1850s, and by 1857 he had seats on its board.
He aligned with James Fisk and Jay Gould in a famous confrontation with Cornelius Vanderbilt trying to wrest control of Erie. This struggle (1866–1868) came to be known as the “Erie War.”
Part of their tactics included issuing new shares (dilution), “watering” shares, and manipulating stock to thwart Vanderbilt.

Vanderbilt was unaware of the inflated share issuance and continued buying, suffering losses. Eventually, Fisk, Gould, and Drew gained control (though it was a temporarily unstable alliance).

Ironically, Fisk and Gould later turned on Drew. In 1870, they manipulated Erie stock in England, causing Drew heavy losses (reportedly ~$1.5 million).

Crises, Fall, and Bankruptcy

Drew’s financial position was also vulnerable to macro conditions. When the Panic of 1873 struck, many speculative ventures collapsed. Drew lost heavily.
By 1876, he filed for bankruptcy, with debts exceeding a million dollars and no viable assets.
In his last years, he was dependent on his son William H. Drew for support.
He died in New York City on September 18, 1879.

Historical Milestones & Context

• 1834: Enters steamboat business, competing with established players like Vanderbilt.

• 1844: Establishes brokerage firm in New York.

• 1857: Becomes a director of the Erie Railroad.

• 1866–1868 (Erie War): Fights Vanderbilt with Fisk and Gould over railway control.

• 1870: Betrayed by Fisk and Gould, suffers massive losses.

• 1873: Panic greatly damages his finances.

• 1876: Declares bankruptcy.

• 1879: Death in New York City.

These events reflect the volatile era of railroad expansion, unregulated markets, and the rise of the titans of finance.

Legacy and Influence

Daniel Drew’s legacy is deeply ambivalent. He is often cited as a quintessential example of the excesses of 19th-century speculative capitalism.

Negative Legacy: Speculation, Manipulation, and Collapse

• He is associated with stock watering (issuing extra shares or inflating value) and manipulation of markets.

• His role in the Erie War is often held up as emblematic of the lack of oversight and the cutthroat nature of railroad finance.

• His dramatic reversal—once fabulously wealthy, later bankrupt—serves as a caution about overleveraging and betrayal in business.

Positive/Constructive Legacy

• Despite his financial fall, Drew made philanthropic contributions—particularly in religion and education.

• He donated to Methodist churches (in Carmel, Brewster, Port Jervis) and supported the founding of Drew Theological Seminary (which later became part of Drew University in Madison, New Jersey).

• His name lives on in Drew University, a reminder that even a controversial man may leave lasting institutionalized contributions.

In sum, Daniel Drew is a figure whose life carries lessons about risk, ethics, and how the structures of capitalism evolved.

Personality, Tactics, and Approach

Daniel Drew was bold, opportunistic, and willing to blur moral lines for gain. His personality and tactics included:

• Aggressiveness in speculation: He did not shy from short selling, issuing additional shares, or manipulating rumors.

• Pragmatism over ideology: For him, profit often overrode public opinion or propriety.

• Adaptability: He moved from cattle to steamboats to railroads to Wall Street.

• Philanthropic streak: Though criticized, he showed religious devotion (Methodism) and made charitable investments, especially in education.

• Resilience in adversity: Even after great loss and bankruptcy, he remained involved in institutions and maintained social standing until his death.

He exemplifies a dual nature: ruthless speculator and in some respects principled benefactor.

(Alleged) Famous Quotes of Daniel Drew

It is challenging to find reliably documented quotes from Daniel Drew himself; many oft-cited lines are of dubious provenance or attributed secondhand.

One frequently attributed (though likely apocryphal) saying is:

“He who sells what isn’t his’n, must buy it back or go to pris’n.”

This quip—referring to short selling—is often quoted in financial lore but is not verifiably traced to Drew in primary sources.

Due to the uncertain nature of such quotes, most scholarly works caution against overreliance on purported Drew sayings.

Lessons from Daniel Drew

1. Speculation is a double-edged sword
   Drew’s successes in speculation also sowed his downfall. Excessive leverage or manipulative practices can be unsustainable.

2. Ethics and reputation matter
   Even if certain tactics were legal at the time, the erosion of trust and public vilification can destroy one’s legacy.

3. Diversification and adaptation
   Drew’s shift across industries (cattle, steamboats, railroads) shows the value of strategic flexibility.

4. Beware alliances of convenience
   His collaboration with Fisk and Gould initially delivered gains but eventually led to betrayal and immense losses.

5. Legacy can outlast wealth
   While financially ruined, Drew’s philanthropic efforts—particularly in education and religion—ensure his name endures.

Conclusion

Daniel Drew’s story is dramatic: from a farm boy in upstate New York to one of Wall Street’s daring speculators, then to destitution. He encapsulates both the bold ambition and moral hazards of the 19th-century American capitalist spirit.

While history condemns many of his tactics, his life provides powerful lessons about risk, power, and the balance between profit and principle. Drew is more than a cautionary tale—he is a mirror reflecting the impulses, excesses, and tensions at the heart of capitalism itself.