CHAPTER XV.

ADMINISTRATION OF JOHN S. ELDRIDGE-1867 AND 1868.

Drew's Defeat Only Apparent - A Truce Between Him and Vanderbilt Broken, and Drew Resumes His Former Status in Erie - Vanderbilt Undertakes to Capture Erie by Buying Up its Stock, and Runs Against Drew and the Erie Printing Press - The Famous Conversion of Millions of Bonds into Stock that Drew Delivered to Vanderbilt Greatly to the Latter's Loss and Chagrin Then the Long Series of Suits, Cross-suits, Injunctions, and Counter-injunctions-Judge George G. Barnard and Erie - Flight of President Eldridge, Drew, Gould, Fisk, and the Erie Treasury to New Jersey - The Erie Scandal Reaches the Legislature, and Breeds New Scandal There The Surrender of Drew, and the $5,000,000 Settlement with Vanderbilt - Official Story of it All.

WHILE Daniel Drew's apparent fall was by no means a cause for regret to the true friends of the Erie Railway Company, it had to them a dreadful significance as the beginning of that ascendancy of the Vanderbilt interest in the Company that they had long feared. Vanderbilt domination meant entire subordination of the Erie and its interests to the New York Central. It was not long, however, before the outside friends of Erie were still further mystified by the resignation of one of Vanderbilt's partisans in the Directory (Underwood), and the election of the deposed Drew to the vacancy, a move that was promptly followed by the great speculator's appointment to his old place as Treasurer. It is held to-day by many who say they have good reason to know, that the rumored alliance of Drew and Vanderbilt was not merely a rumor, and that the deposing of Drew by Vanderbilt at the October election was simply a collusive trick to deceive the public. As proof of this they point to the quick restoration of Drew to place and power in the new Erie management. Others who claim to know as much about the truth of the situation as any one else declare that the overthrow of Drew by Vanderbilt was bona fide, and that Drew, ever wily, diplomatic, and plausible, had secured his own restoration to power. The weight of evidence is in favor of the ante-election compact; but no matter which was the fact, the result could be but the same to Erie-misfortune, shame, pillage. Vanderbilt and Drew operated in the Street together-or, at least, not in opposition --for nearly half a year. Then suddenly it became known on the Street that Vanderbilt had resolved

to get absolute control of the Erie Railway Company as the best means to carry out his private ends as well as to control matters in relation to the New York and Chicago connection. This determination, it was further asserted, had been brought about by the fact that the new President of the Erie Railway Company had not carried out his part of the programme agreed upon between him and Vanderbilt. It seems that as time passed the new President had become greatly impressed with the genius of Daniel Drew, and as the Vanderbilt succession to Erie had not assumed a condition of certainty that warranted longer alliance with the Vanderbilt interest, the manipulator of the Boston, Hartford and Erie scheme transferred his allegiance to the sagacious Drew.

General Diven brought before the Board of Directors, December 4, 1867, the question of the broadgauge connection with Chicago, and offered a resolution authorizing the President, Vice-President, and Treasurer of the Erie Railway Company be a committee to act on such recommendations as the committee might make in the matter. The resolution was adopted. This committee made its report February 18, 1868, which was an agreement with the Michigan Southern and Northern Indiana Railroad Company for the laying of a third rail from the Atlantic and Great Western Railroad from Cleveland to Toledo and westward, thus forming a broad-gauge route to Chicago, and for operating the line. The agreement was approved and signed by President Edridge, of the Erie, and E. B. Phillips, President