, 1869-01-21
WATERING RAILROAD STOCKS.

cent BY the New York Central Railway
Company Wa one Of those acis Of reckless
prcfigacy for which there CHI be no ex-
cue, and which ought 10 be prohibited
BY law. The CONNECTION between the
railroads snl the capital and Industry Of
tie county IL so close that everything
that destroys The .valrs and credit ot snch
corporations, iptlicss m Injury upon the
country generally. The duplication of
railway ttccks without any real incYene
OF capital, is, prinsa ,}t1cic, IN act of dis
honesty, and ti1 practical effect Ia 10 !
swiudle honest people who held the stock
as al inve.tmeur, and eventually to bank
1up, the c1mpsny. 4 clique Of Opera
tors, including the cf1lccrs and Directors
Ct the rosd, de.e1mils to mike stick
dividtnd Of, say, eighty per cent.
They buy FL tho stock they can
get hold cf ior the pufpose o! poekesing
Ibis dividend which nobody else antict-
pstes. They declare the dividend, ard
then sell orr. putting the difference In
their pockets. The 6ona fda holder Of
stoct In the rotd receives his poraon oil
additional stock. BE- has two pieces Of
psper in bis pocket instead OF one, but
neither Of them pay dsviJcpds. The
stock has been wase1ed to point where
no dividends can be made. What has be-
cems Of this man's propertyf Hs had :
dividend-paTiug share short sime since.
He NOW has two shares which p.y nosh-
ing. His capital hss gone into the pock-
els Of the clique without his knowing It
Repes2 the process few Zines and the
road become insoIrent and passes Into
the hands cfthe bondholders.
The correction between The prosperity
and credit Of the SAFE, AID Of its rail-
ro.ds, ia 20 inlima'e that the iatier can
rot pass into insolvency without iciur-
ing the c1edi. End financial character
tf the former. No rsilrosd corporation
can Anrvive SUGGESTION Ut stock divi-
dendr, ard in The Decentralization that
,hey cauke, they subject tho producing
l.bor cf lhe conDuy to q terrible tax.
The public are placed urder contribution
by heavier charges foy fa1es and tseigaz
to supply the deficiency in the Iteeip,s o'
railways csused by these operations o.
The r SKIS a1d Vapderhil.s. Tue increase
ofsnek sftc1ds pre- ext fct demsndins
an ncresse &f revenue. capisal stock o
ten niliiona, Yitldirg en- per cert per o1
num, If ws'ered TO 1h'r'y millions with
out any !nczsa4e Of espi's!, vii! psy bu
three per cant. Owntrs of wateIed ssocl
d1d It va1ueleEs in their hau1e-dad tbs
the two OF three thares ot the dllu'c'
scrip are rot as profitable 81 the o1tzIna
stare: they demand increased rates Of tsr
and freight, and tx ia II once laid upa'
the shippers and travellers &c make eacl
Of the three shares OF Watc1ed sock q
profitable ea the origiaat sasre. The in
creased plice ct transportation cons.i
tu,es check upon prudncsi2n. II re
duces the conpeusauon for (aa1r, au
eererslly weakcns public c1edit aud col
ficence- Fraud, dishonesty and owe
reaching cannot add " the Eetmsues
prosperity Of any iate1e!t. Esery doll.
thus llegitimn'tly made by he rallro!
operator IL like every do'l4r made by It
gambler over his Bweat-clold-so mul
mc1ey whose loss mus; be maoe good
the lahcr at &hrse VII, are not rsalro
operators nor b!ack'eEs. Esch time t
eperatiop Ia repeated the more destrr
tive are is tHec ?, and .he nnre opp1'
kive The CONSEQUENT t1sc ious-
The character, credit ard future bu
ness OF the 6:a.e OF New York ara bou
up Inseparably with the credit and int
r,ty OF ita rAirrotd corporations !
fame relation e1i between ali the r