Daniel Drew is popularly credited with introducing what would be called "watered stock" to the New York financial district, to describe company shares that were issued by false means such as counterfeit certificates or shares issued that were not authorized, resulting in a dilution of ownership; the term supposedly came from his time in the cattle business, when he would have his cattle drink water before selling them, to increase their weight temporarily.

The tactic will be used in the Erie War of 1866-1868 to block Vanderbilt from getting ownership of Erie.

In 1857, Drew had become a member of the board of directors of the Erie Railway and had used his position to manipulate the firm's stock price.

In 1864, Drew had once again struggled with Vanderbilt, speculating on the stock of the New York and Harlem Railroad.

Drew had been selling the stock short, but Vanderbilt and his associates had bought every share he sold, ultimately causing the stock price to rise from 90 to 285 in five months.

Drew loses $500,000.

Born in Carmel, New York, Drew had been poorly educated.

His father had died when Daniel was fifteen years old.

Drew had enlisted and drilled, but because he enlisted too late, never fought in the War of 1812.

After the war, he had started a successful cattle-driving business, marrying married Roxanna Mead in 1823.

In 1834, he had entered the steamship business, competing unsuccessfully with Cornelius Vanderbilt but running numerous profitable lines outside of New York.

He had founded the brokerage firm of Drew, Robinson & Company in 1844, which dissolved a decade later with the deaths of his partners, after which he had continued to work in the brokerage business as an independent operator.

Jay Gould's father-in-law is credited with introducing the younger man to the railroad industry, when he suggested that Gould help him save his investment in the Rutland and Washington Railroad.

Gould had quickly acquired a majority of the company's bonds at 10 cents on the dollar.

Jason Gould was born in Roxbury, New York, the son of Mary More (1798–1841) and John Burr Gould (1792–1866).

His father was of British ancestry and his mother was of Scottish ancestry.

Gould's maternal grandfather Alexander T. More was a businessman, and his great-grandfather John More was a Scottish immigrant who founded the town of Moresville, New York.

Known as Jay, young Gould had studied at local schools and the Hobart Academy, where his principal was credited as getting him a job working as a bookkeeper for a blacksmith.

A year later, the blacksmith had offered him half interest in the blacksmith shop, which he had sold to his father during the early part of 1854.

Gould had devoted himself to private study, emphasizing surveying and mathematics.

In 1854, Gould had surveyed and created maps of the Ulster County, New York area.

In 1856, he had published History of Delaware County, and Border Wars of New York, which he had spent several years writing.

In 1856, Gould had entered a partnership with Zadock Pratt to create a tanning business in Pennsylvania in what would become Gouldsboro.

Eventually, he had bought out Pratt, who retired.

In 1856, Gould had entered another partnership with Charles Mortimer Leupp, a son-in-law of Gideon Lee, and one of the leading leather merchants in the United States at the time.

Leupp and Gould had been a successful partnership until the Panic of 1857.

Leupp had lost all his money, while Gould had taken advantage of the opportunity of the depreciation of property value and bought up former partnership properties for himself.

After the death of Charles Leupp, the Gouldsboro Tannery became a disputed property.

Charles Leupp's brother-in-law, David W. Lee, who was also a partner in Leupp and Gould, took armed control of the tannery, believing that Gould had cheated the Leupp and Lee families in the collapse of the business.

Eventually, Gould took physical possession, but was later forced to sell his share of the company to Lee's brother.

In 1863, he had married Helen Day Miller, with whom he will have six children.

Jim Fisk has aided Daniel Drew, who had become treasurer of the Erie Railway, in the struggle against Cornelius Vanderbilt for control of the railroad from 1866 to 1868.

To get revenge, Vanderbilt had tried to corner Erie stock, which led to the so-called Erie War, bringing him into direct conflict with Jay Gould and Fisk, who had just joined Drew on the Erie board.

New York state law restricts the number of shares a company can issue

However, Fisk and Gould have become involved with Tammany Hall, the New York City political ring, and Boss Tweed had arranged, through bribes, for legislation that had legitimized fake Erie stock certificates that Gould and Fisk had issued in large quantities

Vanderbilt, unaware of the increase in outstanding shares, had kept buying the “watered” Erie stock and sustained heavy losses

Eventually conceding control of the railroad to the trio, Vanderbilt had lost more than seven million dollars in his failed attempt, although Gould will later return most of the money after Vanderbilt uses the leverage of a lawsuit to get his losses back

Vanderbilt and Gould become public enemies

Gould will never get the better of Vanderbilt in any other important business matter, but he will often embarrass Vanderbilt, who uncharacteristically lashes out at Gould in public

By contrast, Vanderbilt will befriend his other foes after their fights ended, including Drew

Boss Tweed, in return for his role, receives a large block of stock and is made a director of the company.

James Fisk was born in the hamlet of Pownal, Vermont, in the township of Bennington on April Fool's Day.

After a brief period in school, he had run away in 1850 and joined Van Amberg's Mammoth Circus & Menagerie.

Later, he became a hotel waiter, and finally adopted the business of his father, a peddler.

He applied what he learned in the circus to his peddling and grew his father's business.

He then became a salesman for Jordan Marsh, a Boston dry goods firm.

A failure as a salesman, he had been sent to Washington, D.C., in 1861 to sell textiles to the government.

By his shrewd dealing in army contracts during the Civil War, and, by some accounts, cotton smuggling across enemy lines—in which he had enlisted the help of his father—he had accumulated considerable wealth, which he soon lost in speculation.

In 1864, Fisk had become a stockbroker in New York, and was employed by Daniel Drew as a buyer.