72 HISTORY OF THE GRANGE MOVEMENT; OR, 



months it was found that the total had increased from 

 $287,036,000 to $400,684,000, or 40 per cent. Carry- 

 ing the comparison on nine of these roads back two 

 years further, it was found that, in less than four years, 

 their capitals had increased from less than $84,000,000 

 to over $208,000,000, or 150 per cent. A portion of 

 this, perhaps 25 per cent, of the whole, represents 

 private capital actually paid in and expended ; another 

 portion, perhaps equally large, represents dividends the 

 payment of which was foregone and the money applied 

 to construction ; the whole of the remainder may be set 

 down as pure, unadulterated ' water,' which calls for 

 an annual tax-levy of some three or four millions a 

 year." 



It will, of course, be clear to the reader that the 

 motive influencing the men who thus increase their 

 stock is simply to increase the amount drawn from the 

 public as earnings upon the sums supposed to be in- 

 vested in the road. A road operating with a capital of 

 $3,000,000, and earning ten per cent, upon this, in- 

 creases its capital, by the watering process to $6,000,- 

 000 and claims ten per cent, upon this valuation. In 

 plain English, the road is extorting from the community 

 the $300,000 represented by the earnings upon the 

 $3,000 ; 000 of watered stock. That sum is drawn from 

 the people and transferred to the pockets of the stock- 

 holders. 



Commenting upon this, the Chicago Tribune in a 

 recent issue said : 



' The railroads have the full protection of the law in 

 the decisions of the United States courts, which hold 

 their charters to be in the nature of a contract which 

 the State cannot violate. They can set up the law in 



