Business; Capitalists and financiers -- United States; Speculation; Wall Street (New York, N.Y.)
He started to purchase cattle in the country and to sell them in New
York. His profits were at first very small, especially as his capital
was so limited. He soon discovered that if he could purchase his cattle
in Ohio he would be able to increase his profits largely, and he applied
to Henry Astor, a butcher in Fulton Market, and a brother of the great
millionaire, John Jacob Astor, for a loan to speculate in Ohio cattle.
Astor accommodated him, though he at first thought he was running a
considerable risk. He was mistaken, for Drew made money and soon
established his credit on a solid basis. He bought cattle throughout
Ohio, and drove them over the Alleghany mountains. He is said to have
been the first drover who attempted this daring experiment. It required
sixty days then to make the journey. He suffered great hardship and
privation, and would sometimes lose a third part of a drove of 600 or
1,000 in crossing the mountains. Yet, as cattle were very cheap in Ohio,
his profits were still very large.
One terrible night, in a terrific thunderstorm, the tree under which he
took shelter was shattered to splinters, his horse was killed under him,
and he himself was struck senseless for a time. But no hardship or
privation could deter him in the pursuit of making money. He afterwards
extended his operations to Kentucky and Illinois.
In 1829 Drew opened a cattle yard at Twenty-fourth street and Third
avenue and ran the Bull’s Head Tavern. He went into the steamboat
business in 1834. Vanderbilt had then been seventeen years in the
business. _Westchester_ and _Emerald_ were the names of his first two
boats, and they ran between New York and Albany, in opposition to the
Vanderbilt Line. Drew reduced the fare from three dollars to one, and
attempted to freeze out Vanderbilt. The war of rates became so fierce
that people were carried 100 miles between these two cities for a
shilling. Drew added the _Knickerbocker_, the _Oregon_, _George Law_,
_Isaac Newton_ and the _New World_ to his river fleet, and became quite
a formidable competitor of the Commodore.
In 1840 Isaac Newton organized the People’s Line on the Hudson, of which
Drew became the largest stockholder. The boats _St. John_, _Dean
Richmond_ and _Drew_ were built. The _Isaac Newton_ was burned and the
_New World_ was sunk.
When the Hudson River Railroad was opened, in 1852, Drew refused to sell
out his stock. “You can regulate your fares as you choose,” he said to
the President of the Railroad Company, “but the only way you can
regulate my steamboat fares is to buy the People’s Line, and this I
don’t believe you have money enough to do.” The railroad line merely
stimulated traffic, as the elevated railroads have done in our day, and
Drew was only a gainer instead of a loser by the apparent competition.
He also controlled the Stonington Line for twenty years.
Public-domain text, read in full here on John Shaqi.
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