A few years ago he wished to consolidate the Hudson River and Harlem Railroads, and when the scheme was presented before the Legislature of New York, secured a sufficient number of votes to insure the passage of the bill authorizing the consolidation.  Before the bill was called up on its final passage, however, he learned from a trustworthy source that the members of the Legislature who had promised to vote for the bill were determined to vote against it, with the hope of ruining him.  The stock of Harlem Road was then selling very high, in consequence of the expected consolidation.  The defeat of the bill would, of course, cause it to fall immediately.  The unprincipled legislators at once commenced a shrewd game.  They sold Harlem right and left, to be delivered at a future day, and found plenty of purchasers.  They let their friends into the secret, and there was soon a great deal of “selling ‘short’” in this stock.[A] Commodore Vanderbilt, although indignant at the treachery of which he was to be made the victim, held his peace.  He went into the market quietly, with all the funds he could raise, purchased every dollar’s worth of Harlem stock he could lay his hands on, and locked it up in his safe.  When the bill came before the Legislature on its final passage, the members who had pledged themselves to vote for it voted against it, and it was rejected.

[Footnote A:  For the benefit of the uninitiated reader, we will explain the “game” more clearly.  Harlem stock was selling at a high price, in consequence of the expected consolidation.  Those who sold “short” at this time sold at the market price, which, as we have said, was high.  By engaging to deliver at some future day, they expected to be able to buy the stock for little or nothing after the defeat of the bill, and then to demand for it the price for which they had sold it in the first place.  Such a transaction was infamous, but would have enabled those engaged in it to realize immense sums by the difference in the price of the stock.]

The speculators were jubilant.  They were sure that the defeat of the bill would bring down “Harlem” with a rush.  To their astonishment, however, “Harlem” did not fall.  It remained stationary the first day, and then, to their dismay, began to rise steadily.  Those to whom they had sold demanded the delivery of the stock, but the speculators found it impossible to buy it.  There was none in the market at any price.  Being unable to deliver stock, they were forced to pay its equivalent in money, and the result was, that all who were engaged in the infamous scheme were ruined.  One of the shrewdest operators in New York lost over two hundred thousand dollars.  He refused to pay, but his name was at once stricken from the list of stock-brokers.  This brought him to terms, and he made good his contracts.  Vanderbilt made enough money out of this effort to crush him to pay for all the stock he owned in the Harlem Road.