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person1830-1879

Daniel Drew

Disciplines:
finance
business history

Summary

19th-century American financier and stock manipulator — former cattle drover who made and lost fortunes on Wall Street through manipulation of Erie Railroad stock and eventually died penniless.

Core Contribution

Drew as the archetype of the Gilded Age financial manipulator: self-educated former cattle drover who discovered that stock manipulation (diluting shares, spreading false rumors, coordinating corners) could produce faster profits than productive enterprise. His warfare with Cornelius Vanderbilt over Erie Railroad (the 'Erie War,' alongside Jay Gould and Jim Fisk) is one of the great episodes in American financial history. The Erie War produced 'watered stock' — a term (from Drew's cattle-droving practice of feeding cattle salt to make them drink water before weigh-in) that became generic for financial fraud.

Key Spikes & Highlights

  • 'Watered stock' — diluted, fraudulently inflated share issuance — is named for Drew's cattle practice: driving cattle to water just before weigh-in to increase their measured weight. The metaphor entered financial language permanently.

Historical Influences

Cornelius Vanderbilt

Intellectual Lineage

Gilded Age Finance Wall Street History

Contemporaries & Peers

Jay Gould Jim Fisk Cornelius Vanderbilt

Minds Influenced

Securities Fraud LawRobber Baron History

Intellectual Posterity

Wall Street History Securities Law

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