DROVER’S SMART TRICK

Wanganui Chronicle, Volume 74, Issue 192, 15 August 1931, Page 19 (Supplement)

DROVER’S SMART TRICK

HOW HE “WATERED STOCK.’

STORY OF CATTLE SALE. A drover’s trick gave rise to the term “to water sto<?k,’’ meaning to increase in nominal amount the stock or capital of a trading company by the creation of fictitious tock. The drover was Daniel Drew, who, later, with Cornelius Vanberbilt, dominated Wall Street in the ’fifties and early ’sixties Robert Irving Warshow tells the story in “The Story of Wall Street,” as follows: “Daniel Drew had been a great success as a drover. His dealings in cattle had been very-profitable, and it was not long before he became the leader in that business in New York’s butcher trade. Driving down the Harlem Valley one day with a herd of cattle, he came upon an idea that helped to make him wealthy and added a racy expression to the Wall Street vocabulary. “Henry Astor, John Jacob’s brother, was one of the largest butchers in New York, and an important customer for drovers. Drew had not been very successful in selling to him, because Astor wanted fat cattle, and Daniel’s cattle, like himself, were lank and lean, bought cheaply and starved. Crossing tho Harlem, Daniel put up for the night. “When all the cattle boys were asleep Drew went out to the drove in the pasture and emptied sacks of salt on the ground. By morning the cattle were choked for water. In the meantime word was sent to Harry Astor that Drew was on his way with some prime cattle, and to meet him at noon. “Not a drop of water did the cattle get until they reached the Bull’s Head tavern, and shortly before Astor arrived. Then they were let loose; the salt had done its work, and they sucked up the water like sponges. By the time Astor came out to look a plump lot of cattle was there to meet him. “Astor tried to hide his enthusiasm, but Drew got three cents (lid) a lb. for cattle that weighed up exceedingly well. Wall Street took the term ‘watered stock’ from this drover’s trick. ’’