488 THE GROUNDSWELL, 



Mr. Hatch show. He states that Mr. Vanderbuilt, getting 

 control of this important line, was not slow in seeing the 

 great advantage that would accrue to himself in levying 

 tolls, from his own conscientious stand-point, upon every 

 pound of freight passing over his line. But, to keep pace 

 with the modern theory of business, he must water, and re- 

 water the stock. 



As soon as they were fairly in his grasp, he commenced a 

 series of waterings that have only been exceeded by the 

 manipulations of the Union and Central Pacific. 



The first act in this great drama was the doubling, in 

 1867, of the capital stock, then $7,000,000, of the Hudson 

 Eiver Kailroad. Upon this stock, only fifty per cent, was 

 called up ; the transaction, consequently, netted the modest 

 sum of $3,500,000. Taught by such instruction, Mr. Van 

 derbuilt, in 1868, declared a script dividend of eighty per 

 cent, upon the share capital of the Central Eailroad, then 

 $28,730,000. This dividend produced $23,036,000! But 

 these vast sums by no means satisfied the maw of this finan 

 cial agent. He contrived the union of the two roads, and 

 made it the pretext for another stock dividend of twenty- 

 seven per cent, on the Central, which produced, with a small 

 addition thereto of alleged surplus earnings, the sum of 

 $8,524,400. At the same time, a dividend was declared 

 upon the share capital, increased at the time to $16,020,800, 

 of the Hudson Eiver. This dividend produced the sum of 

 $13,623,800. 



How IT FIGUKES UP. The following is a statement of 

 the several waterings : First watering of Hudson Eiver, 

 $3,500,000; first watering of New York Central, $23,036,- 

 000; second watering of Hudson Eiver, $13,623,800; second 

 watering of New York Central, $8,524,400. Grand total, 

 $48,684^200, 



