THE FARMER'S WAR AGAINST MONOPOLIES. 65 



to have cost only $24,000,000, was suddenly represented 

 by $33,400,000 of securities, none of which bore a less 

 interest than 7 per cent. 



" The great masterpieces of Commodore Vanderbilt 

 have, however, so eclipsed all other performances in 

 this line that they may be said to constitute an epoch 

 in the history of paper inflation it might also be said 

 of bubble-blowing. It is only necessary, therefore, in 

 this connection, to recount the history of the chain of 

 roads, now reduced in number to two, which connect 

 New York and Chicago by way of Albany. The dis- 

 tance between these points is 982 miles. It is useless 

 to begin the story further back than 1852, when the 

 through line was completed, consisting of sixteen inde- 

 pendent links, several of which were themselves made 

 up of numerous smaller and once independent roads. 

 That was a year of active and much-needed consolida- 

 tion. The New York Central led off under a special 

 act of legislature. Eleven roads went into the consoli- 

 dation, with an aggregate capital of $23,235,600. The 

 stock lowest in value of the eleven was settled upon as 

 the par of the new concern, and the stocks of the other 

 ten companies were received at a premium varying 

 from 17 to 55 per cent. By this simple financial 

 arrangement, $8,894,500 of securities, of which not one 

 cent was ever represented by property, but which in 

 reality constituted so much guaranteed stock, was made 

 a charge, principal and interest, against future income. 

 This was the price paid to get rid of the vested rights 

 which had been allowed to settle down upon this 

 thoroughfare. Between 1852 and 1868, the stock and 

 indebtedness of the consolidated company had been in- 

 creased, for one reason or another, until, when Mr. 



5 



