66 HISTORY OF THE GRANGE MOVEMENT; OR, 



Vanderbilt became President in the latter year, they 

 amounted in round numbers to $40,000,000, represent- 

 ing a road which its construction account showed had 

 cost $36,600,000. Vanderbilt had for some years been 

 President of the Hudson River road, and, as such, in 

 1867 had doubled its capital stock ($7,000,000), calling 

 in 50 per cent, of the increased amount, and thus water- 

 ing to the extent of $3,500,000. Extending his control 

 over the Central, he now proceeded to better his pre- 

 vious instructions. A stock dividend of 80 per cent., 

 not a dollar of which was called in, was suddenly de- 

 clared. Over $23,000,000 of securities were thus 

 created at once. Operations stood still at this point, 

 but only for a moment. The next measure was a con- 

 solidation of the Central and the Hudson River Rail- 

 roads. This was effected in the succeeding year upon 

 a stock basis of $90,000,000 a further watering of 27 

 per cent, being allotted to the Central while the turn 

 of the Hudson River road now having come again, 

 there was provided for it the munificent amount of 85 

 per cent. The result of these astounding feats of 

 financial legerdemain was that a property which in 

 1866 appeared from its own books to have cost less 

 than $50,000,000, and which was then represented by 

 over $54,000,000 of stock and indebtedness, was sud- 

 denly shot up to over $103,000,000 in 1870, upon the 

 whole of which interest and dividends were paid. At 

 the same time the cost of the road stood upon the 

 books of the company at less than $60,000,000, or 

 about $70,000 per mile, while in evidences of property 

 each mile was charged with no less than $122,000. 

 The average cost of railroads throughout the world has 

 been somewhat less than $100,000 per mile, while in 



