MONOPOLY OF TRANSPORTATION. 591 



property of the Pennsylvania Railroad Company. The 

 stock of the Fort Wayne was raised from $11,500,000 to 

 $19,714,000, while the entire road, which was claimed to 

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

 $33,400,000 of securities. 



In 1852, eleven roads went into a consolidation with 

 the New York Central, with an aggregate capital of 

 $23,215,600. 



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 seventeen to fifty i five per cent. 



By this financial arrangement $8, 894, 500 of securities 

 of which not one cent, was ever represented by property, 

 was made a charge, principal and interest, against future 

 income. 



By the year 1868, this company, known as the New 

 York Central, had, under various pretexts, increased its 

 stocks to $40,000,000. 



u ln 1867 the Hudson River Railroad watered its stock 

 to the amount of 50 per cent. Mr. Vanderbilt, who had 

 for many years been the president of that road, now ex- 

 tended his control over the Central. A stock dividend of 

 80 per cent, was declared. Over $23,000,000 securities 

 were thus created at once. The next measure was a con- 

 solidation of the Central and Hudson River railroads. 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, stock dividend. 

 The result of these astounding feats of financial legerde- 

 main was, that the property, which, in 1866, appeared, 

 from its own books, to have cost less than $50,000,000, was 

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



