STATE ORANGE OF ILLINOIS. 107 



or a dividend of fifty per cent.; and again, at the time of consolidation, 

 anolhrr of eighty-five per cent, on the outstanding stock of $16,000,000, 

 making an issue of $13,625,000. The New York Central Company had 

 in 1868 presented its stockholders with $23,036,000, or eighty per cent., 

 followed by one of twenty-seven per cent. $7,775,000, at the time of con- 

 solidation. Thus in the space of two years the now New York Central 

 and Hudson liiver Railroad Company added to its capital the small sura 

 of $47,936,000, created out of nothing but the will of its Directors and the 

 mixture t)f paper and printer's ink. From 1870 to 1872, the bonded debt 

 was increased each year by one or two millions of dollars, since which it 

 has been increased some twenty million dollars, for purposes of construc- 

 tion. Who shall say if any, or how much, of this has been additional 

 "water" to make up the necessary amount of $7,200,000 for annual divi- 

 dends? It will be seen by the foregoing, that the known fictitious cajjital 

 of this company, including the issue of 1853, is some ten million dollars 

 greater than the real capital which had been invested down to 1869. This 

 road, as is well known, pays regularly eight per cent, on its entire stock. 

 Suppose it had, instead of manufacturing stock as above described, 

 reduced its charges for transportation until they yielded but eight or ten 

 per cent, upon its bona fide obligations, would we not have maintained 

 our native position in the race for commercial supremacy? The Erie 

 Canal, before the advent of railways, placed New York far in advance of 

 other cities, and with equal railway facilities she need never fear a fair 

 competition. T?ie volume of bitsiness done entitles her to Imoer rates than 

 other points, fcr it is well known tluit the proportionate cost of transportation 

 decreases very rapidly as the volume of business increases. What is true in 

 regard to the management of the New York Central, is also true of the 

 Erie; both of these great highways have been managed as if the public 

 were made expressly for their use, and that it had no rights which they 

 were bound to respect. The stockholders even have been swindled 

 by the managing Directors, and the history of the transportation system 

 of this State, shows that this great business has fallen into the hands of a 

 few men, who have no interest in the development of commerce, and wlio, 

 feeling secure in their control of our highways, exact such toll as they 

 please. Our present system of transportation is so filled with defects and 

 abuses that the public are taxed at least double what they ought to pay 

 for the service rendered, and if this is continued our commerce and all 

 other interest dependent thereon must suffer further. 



The question then arises how can this state of things be remedied? 

 The roads having watered their stocks cannot now reduce them. You cannot 

 legislate the water out that has been put in. The managers will not 

 reduce rates until compelled to do so, and they can only be compelled by 

 competition. Some people advocate competition by canals, but canals 

 are closed a great part of the year, are too slow for many classes ot goods, 

 and cannot reach many parts of the continent. The elements of speed 

 and certainty enter so largely into the calculations of modern commerce 



