2C2 HISTORY OF THE GRANGE MOVEMENT; OR, 



torial columns, editorial virtue being overcome by the 

 temptation of a large advertising contract. The re- 

 ligious papers are a favorite medium for the advertise- 

 ment of wild-cat railroad bonds, and it i* a singular fact 

 that the most enthusiastic endorsements of these secu- 

 rities have been from this source. In effect, the press 

 is bribed to puff the securities of the road. The bank- 

 ing-house negotiating the loan pledges its faith to the 

 public that the bonds are a valuable commodity, and it 

 is principally upon its representations that the bonds 

 are sold. So common has this practice become, that 

 bankers seem to lose sight of the responsibility they 

 incur towards the public in thus recommending doubtful 

 securities. 



Well, the bonds are sold. Who are the purchasers? 

 Not the great capitalists, who are shrewd enough to see 

 through the whole transaction, but people of moderate 

 means, persons who cannot afford to take risks or to 

 lose any of their income, and who buy the bonds be- 

 cause of their confidence in the representations of the 

 house disposing of them. 



With the money received for the bonds the road is 

 built, and put in operation. The stock is then issued 

 and divided among the originators of the scheme. The 

 people have paid the cost of the road, and also the 

 large commissions paid to the bankers who sold the 

 bonds, and as they hold a mortgage on the road, they 

 are its real owners. But the stock, which represents 

 the ownership of the property, is divided among the 

 originators of the scheme, who are also charged with its 

 management. It has not cost them anything, but now 

 that the road is built and in running order, it is a valu- 

 able commodity. The holders of it are shrewd men, 



