Historical memoir of the Western railroad

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Historical memoir of the Western railroa

3 1924 013 693 217

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SISTOBICAL MEMOIR

OF THE

pt^p llatlpal

Bt GEORGE BLISS.

SPRINGFIELD, MASS.:

BAMUEL BOWLES & COMFANT, FBINTEKS.

1863.

INTRODUCTION,

The attention of the early friends of Internal Improvement in Massa-
chusetts, was directed exclusively to the subject of Canals. Eailroads
were not introduced generally, even in England, as means of public travel
and transportation, until a comparatively recent date.

The first movement for a communication from Boston westward, was by
Gen. Henry Knox, in 1791, for a Canal. He caused extensive surveys to
be made in that year by John Hills, Esq., both upon a southern route
through Worcester, and upon a more northern one. He and his associates
were incorporated March 10th, 1792, by the name of " The Proprietors of
the Massachusetts Canal," with authority to make a Canal from Boston to
the Connecticut River. It does not appear that active measures were
taken undpr that charter. Their maps and estimates were preserved, and
placed in the hands of the State Commissioners for Canal Surveys in
1825. Though charters were granted for local Canals, no general move-
ment was attempted from Boston to the interior of the State, until 1825.

At the opening of the January session of the Legislature of that year,
Gov. Eustis called attention to the subject, as follows : — "A water commu-
nication from Boston, to, and through the western parts of the State, would
tend greatly to advance the interests of Agriculture, and of the numerous

Manufactures established in the interior. The present state of

the Treasury will not, I am sensible, admit the application of funds, to any
considerable amount, to objects of this nature. The time may, it is hoped,
be not far distant, when the State maybe able to assist enterprising and

4 HISTORICAL MEMOIR OF

spirited individuals who may engage in them Should the Leg-
islature be diposed to pay attention to the subject at their present session, I
suggest the expediency of appointing or authorizing the employment, tem-
porarily, of a civil Engineer, to make surveys, examinations and reports,
relative to such routes as the IJegislature may designate."

In pursuance of this recommendation, a resolve was passed February
25th, 1825, authorizing the appointment of three Commissioners, to ascer-
tain the practicability of making a Canal from Boston Harbor to Connecti-
cut River, "and of extending the same to some point on the Hudson River,
in the State of New York, in the vicinity of the junction of the Erie
Canal with that river." Under this resolve, Nathan Willis, of Pittsfield,
Elihu Hoyt, of Deerfield, and Gen. Henry A. S. Dearbon, of Boston,
were appointed Commissioners, and Col. Laommi Baldwin, Engineer.

At the June session of 1825, Gov. Lincoln in his message, alluding to
these Commissioners, said, '< Should the authorized surveys and examina-
tions result in demonstrating the practicability of the proposed Canal from
the Connecticut to the waters of the ocean, the immense benefits" to be
derived from it, " should insure the application of the most vigorous and
efficient means to its speedy accomplishment." He adds-?— "In connection
with the subject of Canals, another means of easy communication has been
suggested, by. the construction of -Railways. . In England, we are assured,
Railways are approved in practice, as affording a rapid and cheap mode of
conveyance. If they may be made with success, still the preference to be
given them over water carriage, can be determined only by experimental
comparison."

The Report of the Commissioners was made at the next session, Jan-
uary 11, 1826. It contains 185 pages, with maps, besides 62 pages of
appendix. They recommended a route for a Canal, through the north
part of Worcester county, to the mouth of the Deerfield river, and
thence up that river, and through the Hoosac mountain, by a tunnel of
four miles, and thence to the Hudson, near Troy.

For the surveys, explorations and maps of the district between the
mountain and Troy, the Massachusetts Commissioners were principally
indebted to the services and letters of George Tibbits, Esq., of Troy, as
per appendix to. their Report, No.'s 9, 10 and 11. The Commissioners
relied upon the services of General Epaphras Hoyt of Deerfield, for the

THE WESTBEN EAILEOAD. 5

surveys and maps of the line between the mouth of Deerfield river and
tl}6 summit of Hoosac mountain, (34 miles and 27 chains.) The Eeport
gives the length of the Canal east of the river 100 miles — west of the
river 78 mile8==178 miles. Total lockage, or rise and fall, 3,281 ^^ feet.
Estimated cost, exclusive of tunnel, - - $5,103,240

Tunnel, 20 feet xlSi, 4 miles, 21 1,200 cubic yds., 920,832

Total cost, $6,024,072

For estimating the cost of the tunnel, the Commissioners give the cost
of several completed ones, per cubic yard, varying from $1.73 to $4.36,
(the Lehigh.^l Assuming 211,200 cubic yards of rock, at $4.36, gives
$920,832, as above. A writer in the Boston Courier estimated, that
upon the data given in the Eeport, it would take 52 years and 19 days
to finish, the tunnel. See Appendix A.

A few days in anticipation of the presentation of this report, Governor
Lincoln, in his message, January 4, 1826, says : "It is shown that the
proposed Canal is a practicable work, and that the interests of the Com-
momwealtb' require its execution." " That there is nothing of hazard in
the operation, that nci enterprise could be undertaken, more beneficial to
the agricultural, manufacturing, and commercial interests of the State,
than the opening of a water communication from the capital through the
populous, productive, and flourishing western counties of the Common-
wealth." He suggests the propriety of continuing and enlarging the
powers of the Commissioners, or of constituting a permanent Board for
the general purposes of Internal Improvement, — with instructions, prima-
rily, to perfect the examination, location, etc., of this Canal.

A Resolve was introduced, authorizing further surveys ; but it was
laid on the table — and the Resolve under which the former surveys were
made, was repealed.

Early in the same session, petitions of Thos. H. Perkins and others of
Boston— and of A. J. Allen and others, praying for surveys for a
Railway from Boston to the Hudson river, were presented ; and the Com-
mittee* on Roads and Canals was " instructed to inquire, whether any
practicable and useful improvements have been made in the construction

*MlUs and Savage of the Senate — ^Eantoul, FarweU; and Calhoun of the House.

6 HISTORICAL MEMOIR OF

of Railways, and of Steam Carriages used therepn, so as to admit of their
being successfully introduced into this Commonwealth ; and if so, whether
it is expedient to extend thereto the aid and encouragement of ^his Legis-
lature."

This Committee reported a Eesolve, authorizing the Governor to
appoint three Commissioners and an Engineer, on the subject of Rail-
ways, which passed the Senate, but was indefinitely postponed in the
House.*

At the opening ' of the June session of the same year, (1826,) in
referring to works for promoting intercommunication between remote
extremes and the Capital of the State, Governor Lincoln says, that « it
seems to be misunderstood by some, that a precise and exclusive character
of improvement is contemplated ; but that nothing was further from the
intention of the Executive." That '^Canals and Railroads have each
their respective advocates, and the election, in most cases, must be
decided entirely by a regard to the surface of the earth, over which their
construction is proposed." That " the more extended and beneficial influ-
ences of Canals in the general improvement of the country, seem to me
too important and decisive to be lightly regarded. A Railroad is a mere
passage way for travel and transportation." " It has no other connection,
or dependance, than upon intercommunication." " All the favorable dif-
ferences" in its favor " may be counterbalanced, by the greater conven-
ience of passing on Canals, and the superior adaptation of boats to cars,
for the accomniodation of the infinite variety in weight and bulk."
He adds, let me not be " understood as intending any discouragement to
the construction of Railways, wherever situation and character of business
warrant their adoption."

But owing to the shortness of the June session, or deterred by the
magnitude of the expense, or the length of time to be consumed in its
construction, no further proceedings were had upon the Report of the
Canal Commissioners.

~ At the same session, however, on motion of Dr. Abner Phelps of Bos-
ton, Messrs. Phelps, Corbet, Lancton, Calhoun and Wells were appointed
a select Committee (to be joined), "to consider the practicability andex-

*0n motion of Mr. H. Shaw of Lanesboro' — who opposed all measures of the kind.

THE WESTERN RAILROAD. 7

pediency of constructing a Eaijway from Boston, on the most eligible
route, to the western line of the county of Berkshire, in order that, if
leave can be obtained from the government of New York, if may be ex-
tended to the Hudson River, at or near Albany ; and that the Committee
be instructed to report information and estimates of expense as they deem
proper." The Senate non-concurred in this order. The House proceed-
ings were then so far rescinded, as to commit the matter to a select Com-
mittee of the House, consisting of Messrs. Phelps, George W. Adams of
Boston, and Emory "Washburn of Worcester, with similar instructions.
The Committee was authorized to sit during the recess. This is believed
to be the first concerted movement having in view the construction of a
Railroad through the State. Dr. Phelps was, from that tim^^ ardently de-
voted to the object. Little was known of the construction, or usefulness
of that mode of inter-communication, and all the inquiries and calcula-
tions were directed to the use of horsepower only. The Quincy RaUway,
the first constructed in this country, went into operation in the summer of
the same year (1826). But this was only three miles long, for transpor-
tation of granite from the quarries to the water, by horse power. See
appendix B.

The Commissioners sent circulars throughout the State asking for infor-
mation upon various subjects bearing upon the proposed enterprise, and
spent much of the year in the necessary investigations. Their Report
was made January 19th, 1827.* It is well worthy a perusal as exhibit-
ing the infancy of a system which has made such rapid advances in less
than forty years.

It does not appear that any instrumental surveys were made, or indeed
any extended explorations of the country, as there was no appropriation
for such an object.

In reference to the mountainous district to be passed, the Commissioneps.
say, " the numerous Railways, foi" several years in successful operation, in
the hilly and mountainous districts in Wales, prova their fitness to an
uneven and undulating country." Several modes of constructing single
and double Railways, in a rude and imperfect form, are given, with pro-
vision for a horse path, and paths for the attendants on each side of the

* House Documents, No. 13, 1821

8 HISTORICAL MEMOIR OF

road. After giving the power of a hoipe to draw eight tons on a grade
of eighty-eight feet per mile, they add that "the locomotive engine, which
operates by steam, is used upon Railways to great advantage." " But in
England, its powers are confined to an elevation not exceeding twentyr
seven and one-half feet to the mile." " An engine of two eight inch
cylinders, weighing about five tons, wUl move forty tons at the rate of nine
or ten miles an hour, and is said to have-, moved, ninety tons at four miles
an hour."

The Committee Vare unanimous in the opinion, that it is practicable to
construct a Eailway from Boston to the Hudson Eiver, at or near Albany."
As to the desi^ation of the " most eligible route," it does not devolve
upon them ; J)ut they say, " upon one route at least, a survey had been
made from Connecticut Biver to the Hudson, by an intelligent and enter-
prising citizen of Berkshire,* and by him, a Eailway has been pronounced
not only practicable, but highly expedient ;" and the Commissioners " are
unanimous in the opinion, that a Eailroad would be far more useful to the
public" than a Canal,-r-^that it is much less expensive, both as to first cost,
and annual repairs — ^that the expense of an iron BaJlway with two setts of
tracks, is estimated by an English writer, at from three to five-ninths the
cost of a Canal per mile, that they are satisfied, not only of the practica-
bility, but of the expediency, of building, a Railway from Boston to the
Hudson.". Xhey report resolves for the appointment of three commis-
sioners and an engineer, to ascertain the practicability and to make sur^
veys, plans, and estimates, and report to the Legislature, and that a sum
not exceeding $5,000 be appropriated for the purpose. Instead of these,
other resolves were passed February 22, 1827, authorizing the appoint-
ment of "three Commissioners to constitute a Board of Internal improve-
ments," to attend to the examination of routes for Canals and Railroads,
and make surveys, and estimates, also for the appointmeat of an engi-
neer.f

By a Resolve of March 2d, 1827, they were directed to survey a route

* Theodore Sedgwick.

f While these Eeaolves were pending, the House, on motion of Mr. 'WaBhbum, or-
dered the pittchase and distribution of three hundred copies of a pamphlet by "N.
Hale, Esq., on the "Practicability and expediency of establiGMng a Bailway from Bos-
ton to the Connecticut River."

%

THE WESTERN RAILROAD. 9

for a Railway from Boston to thfe Rhode Island line, and a route for a
Canal to the Blackstone Canal, &c.

Messrs. Josiah J. Piske, Willard Phillips and James Hayward were
appointed to constitute this Board of Commissioners. With the excep-
tion of a report on the subject of a Canal from Warren (then Western)
to the line of Connecticut, it does not appear that they performed any
other duty.*

But at the June session of 1827, upon the petition of James Whiton
and others of Berkshire, Josiah Quincy and others of Boston, and sundry
other petitioners, Resolves were passed authorizing the appointment of
two Commissioners and an engineer to cause the necessary surveys, plans
and estimates to be made for a Railway on the best practicable route from
Boston to the line of New York, and thence, (with leave obtained) to
the Hudson River at or near Albany, and $10,000 was "appropriated for
the purpose. Nahum Mitchell of Boston, and Samuel 3Vf. McKay of
Pittsfield, were appointed to this duty, with James F. Baldwin as En-
gineer.

In anticipation of their Report, at the January session of 1828, Gov.
Lincoln, in his message, on the 2d of January, after speaking of the suc-
cess of the explorations, adds, " Their Report will probably again present
to the licgislature the interesting question, of encouraging, by public
appropriations, works of Internal Improvement ; " and he suggests motives
" to direct to wise and liberal proceedings on the subject." He transtuitted
the Report, January 29, 1828.

The Commissioners made explorations through two entire routes. The
southern, through Framingham, Worcester, Springfield, Chester, Wash-
ington, Pittsfield, and West Stockbridge, to the State line at Canaan,
thence through Chatham and Xinderhook to the Hudson, at Albany.
The northern, route explored, was from Troy, by Hoosac Four Comers,
Williamstown, Adams, to the Connecticut river at Northampton, thence
by Belchertown, Rutland, Boylston, Watertown, Cambridge to Boston.
Several lateral explorations were made; and among these, one from
Chester, by Walker brook, Becket, and Stockbridge, to the State line, at
Canaan.

* Probably the oompensatwn, four dollars per day, was not deemed adequate for
services and expenses.

10 HISTORICAL MEMOIR OF

Accurate instrumental surveys were made only upon the southern
route — and upon this for twelve miles only westerly of Boston, and from
Connecticut river in West Springfield to Albany, leaving a district of
sixty-six miles east of Springfield unsurveyed. The Report says, " The
explorations and surveys have been conducted exclusively, with reference
to the use of animal power," as " better adapted to the transportation of
that endless variety of loading, which a dense and industrious population
requires." " The inclination at any given point wiU not exceed the rate
of eighty feet per mile," — deferring to the future the question of short-
ening distances, and saving expense, by the introduction of inclined planes,
with mechanic (stationary) power.

As to motive power, the Report gives a variety of computations, con-
cluding that the ordinary measure of horse power was eight to ten tons
for one horse, and that this was preferable to locomotive power hf steam.

No estimate of expense was given ; a large part of the route not hav-
ing been surveyed — ^but a variety of facts is given, deduced from expe-
rience in England, and the opinions of writers, why Railways should be
preferred to Canals. The Report states that the best Canals in this
country cost less than half the first cost of English Canals — as $20,000
to $40,000 or $45,000 per mile. That the average cost of a number of
Railroads in England was about $25,000 per mile, probably with reference
to animal power— the Iiiverpool, and Manchester Railroad not having
then been built, though in progress. The Commissioners say, " there is •
no reason why Railways in this country, should not be constructed as
much cheaper than in, England, as comparatively is the difference between
the cost of American and, English Canals."
The length of the proposed road is given

as Boston to Needham, surveyed, 12 miles.

Needham to Connecticut river, not sur-
veyed - - - - 66 " ,
Thence to Washington Summit, surveyed, 39 miles, 109 rods.
To Hudson river, opposite Albany, " 63 " 103 "

Total 180 miles, 212 rods.

The length of the road as since constructed js 200 miles — the whole of
the difference being east of the Connecticut river. The Summit in

THE -WESTERN RAILBOAD. 11

Washington is Stated at 1440 feet above the Connecticut, at Springfield,
and 1477 above the Hudson, at Albany.

In considering further the practicability of the proposed road, various
enterprises in England are particularized, and the grant of the Liver-
pool and Manchester Railroad, with a capital of $2,264,000 is noted.
That the Quarterly Review of March, 1825, speaks of speculations,
which have raised up associations in one month, " for construction of 3,000
miles of these iron roads, at an expense of £20,000,000 sterling. The
reason given is, the success of the Stockton and Darlington Railway,"
where " coaches are constantly plying, which carry six passengers inside,
and fifteen or twenty outside, .with luggage, and run at the rate of ten
miles an hour," " which seems an enormous load for one horse, and yet,
the animal scarcely appears to make any exertion."

As an inducement to construct the road, the Commissioners present a
variety of statistics of business, stating that the trade of the five western
'counties of the State had been transferred to New York — that the road
would form a direct communicatif)n with the large internal improvements
of the State of New York, and the Western and Northern country.

The Report gives a table of exports and imports per annum of twenty-
seven towns on or near the line, with a population of 35,681* — the im-
ports at 5,963 tons, the exports 2,976 tons, paying a freight of $5 to $30
per ton. Estimated number of passengers by stages, 30,000 per annum.

In transmitting the Report to the Legislature, Gov. Lincoln says, " The
results to which the Commission have already arrived, may be considered
as fully establishing the practicaMlity, within the reasonable application
of means, of the construction of the road."

In the Legislature this Report was sent to the Committee on Roads
and Railways, who reported February 15, 1828, that " after mature ex-
amination of the facts and statements contained in said Report, they are
of opinion, that the Railroad, as applicable to Massachusetts and to New
England generally, has, since the making of said Report, assumed a new
and greater importance; that it wUl prove a new creation of wealth,

*As a sample, and for comparison with present results, we ^we the return for
Springfield. Imports TOO tons, exports 5,000 tons, principally by Che river — the .price
to and from New Tork being $3 to $4 per ton, and to and from Boston, by water, $4
to $5, and by land $20.

12 HISTORICAL MEMOIR OF

power, and prosperity to the State." " That a Eailroad can be constructed
at far less expense than a Canal, and be productive of still greater advan-
tages."

To pursue the enquiries, the Commissioners propose the formation of a
Board, through whom the investigations may be made, and those principles
thoroughly inquired into, upon which the railroad system shall he introduc-
ed into the State. For this they report a bill, and on March 11, 1828, an
act was passed providing for the choice by concurrent vote of the two
Houses, at that session, nine persons to be a Board of Directors of In-
ternal Improvements, to serve without compensation, except the payment
of expenses when on duty. They were authorized to appoint not exceed-
ing two engineers, who should be required under their direction, — the
authority of the State of New York being first obtained, — to survey aU
such routes or lines as said Directors should think necessary, from Boston
to the Hudson river, to enable them to determine the most eligible route,
over which to construct a Eailroad between those points ; to submit to them,
the surveys and estimates, and, under their instructions, to locate and stake

out the road from Boston to the Hudson river These Directors

were authorized to employ the necessary agents to receive grants of land,
make provisional arrangements for the construction of the road in New
York, and to receive proposals for contributions therefor. They were
required to report to the Legislature, as to the expense and best mode of
constructing the road, whether by the State alone, or partly by the State,
and in part by individuals or corporations, and on what terms the means
could be provided. Further proceedings under the Resolve of June 14,
1827, (for appointment of special Commissioners,) to be staid.*

The two Houses chose Levi Lincoln, Nathan Hale, Stephen White,
David Henshaw, Thomas W. Ward, Royal Makepeace, George Bond,
William Foster, and E. H. Robbins, Jr., to constitute the Board of Direc-
tors ; and they appointed James F. Baldwin, engineer.

About the time of these proceedings, the Legislature of New York,
(April 15, 1828,) passed " an act to facilitate the construction of a Rail-

• * There was a competition between the friends of the routes by Pittsfield and by
Stockbridge, and Col. McKay of Pittsfield as the Special Commissioner, under the Re-
solve of June 14, 182'?, having reported in favor of the Pittsfield route, it was sup-
posed that Mr. Sedgwick and others of the Stockbridge route favored the change to the
Board of nine Directors.

THE VESTEEN RAILROAD. 13

road from the City of Boston to tlie Hudson river ; " and under it Eben-
ezer Baldwin of Albany, Oliver Wiswall of Hudson, and George Tibbits,
of Troy, were appointed Commissioners, and William C. Young, Engi-
neer. The act " pledged the Legislature, that if the State of Massachu-
setts shall construct a Railroad from Boston to the boundary of this State,
either directly, or through the medium of an incorporated Company,
the Legislature of this State will construct it from thence to the Pludson
river, or grant to the State of Massachusetts, or some authorized Com-
pany tthe right of so doing, and taking tolls thereon, under proper restric-
tions as to jurisdiction." ^

The surveys and explorations, by the Commissioners of both States,
were in progress in almost every part of the territory, between Boston
and the Hudson river during the whole of the year 1828. And, being
under the authority of the Legislatures of both States, public attention
was much awakened to the subject of the proposed Railway. A very able
pamphlet of twenty-three pages was published in Stockbridge, entitled
" Brief remarks on the Railroad proposed in Massachusetts, by Berkshire,"
and written by Theodore Sedgwick of Stockbridge. Powerful argu-
ments were urged for the early construction of the road, and that it be
built by the State. At an earlier period, November, 1826, Emory Wash-
burn of Worcester had published in the Worcester ^gis a series of
articles on the subject of railways — and these witt the pamphlets of N.
Hale, — January 1827, distributed among members of the Legislature,
aided much to draw the public attention to this new mode of conveyance.

The Report of the Commissioners of Massachusetts was made to the*
Legislature January 16, 1829, and that of the New York Commissioners
to the Legislature of that State, February 25, 1829. The latter states
that " two routes have been minutely surveyed, one from Troy through
Pownal to Adams, the other from Albany and Hudson to West Stock-
bridge, — the lines from Albany and Hudson to unite at Chatham."*

The Report of the Massachusetts Board of Directors, together with
the elaborate Report of their Engineer, aided by the New York Reports
and Surveys, having formed the foundation upon which the surveys and

*This Report with surveys, "estimates and sundry documents is found in the Jour-
nal of the Senate of New Tork, 52d session, page 235, and the reports and tables
of the engineer in the appendix of the same volume, page 1.

14 HISTORICAL MEMOIR OF

location of the road now in operation were made, it may not be amiss to
place on record in this connection, some of the more important provisions
of those documents. The Massachusetts Board was composed of the
ablest men in the State for such an undertaking, and many of them
devoted themselves to the work with commendable industry and perse-
verance.

The first object was to select "a route from Boston to the Hudson river
which would, at the least cost, afford the shortest and easiest communica-
tion between the extreme points, and also the greatest accommodation to
the inhabitants of the intermediate country." To this purpose " an exam-
ination was had of all the routes which appeared to offer any advantages,
for securing these objects." Three general routes were under consider-
ation, and surveys were had upon all so far as to t^st their respective
merits.

The Jirst ■wa.s the general route, upon which, with variations, the Boston
and Worcester and the Western Eoads were subsequently built, to the
State Line, at West Stockbridge, and to this a preference was given by
the Board. From thence, two lines were surveyed to Albany. One by
Mr. Young, under the direction of the New York Commissioners, and
the other by the Engineer of the former Massachusetts Commissioners, in
1827. Both pursued the same general course to Groats, or Chatham
Four Corners, not varying far from the line on which the road was sub-
sequently built. From Groats', Mr. Young took a more westerly direc-
tion, striking the Hudson near Schodack Landing, thirteen miles from
%.lbany, thence by the valley to Greenbush. Mr. Baldwin's line reached
the river at Castleton, eight miles from Greenbush. The road, as finally
constructed, keeps upon higher land, reaching the river valley ,af Green-
bush. Mr. Baldwin's line, via. Castleton, was adopted by the .Massachu-
setts Board.

By these surveys, the distance from Boston to Connecticut river was
94 miles and 64 chains, and to the State Line 160 miles and 44 chains —
and by the shortest of the lines surveyed 198 miles and 6 chains, to
Albany. Mr. Young's route from the State Line, was 40 miles 70 chains,
and by this, Boston to Albany was 200^ miles.

The cost of the section within the State of New York was estimated
by Mr. Young, at $658,601, or $16,162 per mile, with no inclination

THE WESTERN EAILEOAD. 15

over 80 feet per mile.* The second route examined was more northerly,
crossing the Connecticut river near Northampton — and the third one
more northerly still, through the valleys of Millers, Deerfleld, and Hoosac
rivers to Troy. The most eligible route found for crossing the Connecticut
river, at Bock Ferry, three or four miles below Northampton, was ascer-
tained to be twelve miles farther to the river, than the south route, and
west of the river, almost insuperable obstacles to joining the south route,
at Chester, passing a summit 563 feet higher than the latter. On the
northern route, the Board had the aid of the surveys for a Canal, made by
Laommi Baldwin, in 1825, by the valley of Miller's river to the Connec-
ticut ; thence to the summit of Hoosac mountain, the surveys were by
Gen. Hoyt.

The Board now caused surveys from Dalton to the line of New York
at Petersburgh — and. the survey thence to Troy was by Mr. Young.
The distance by the third or northern route from

Boston to Troy, was - - - 190 miles.

By the middle or Northampton line, - - 210 "

The summit ridges were largely in -favor of the south route. The
Board say, that on either of the two northern routes, stationary power
would . be indispensable, for passing the Berkshire ridge, tunneling not
being contemplated. Mr. Baldwin surveyed also a route from near the
State line, in West Stockbridge, through West Stockbridge village, and
Stockbridge, to the Housatonic river, and to Lee, Lenox, and Pittsfield
by the valley of that river. This was more level than the Bichmond
line, but too circuitous to be adopted. From Lee a line was run to the
summit in Becket,. which was favorable, if stationary power were adopted. <
This summit was 240 feet higher than the summit in Washington, on the
Pittsfield, or main southern route.

In their Report, the Board of Directors recommended the coTistruction
of a double Railway, with a flat iron rail, laid upon a longitudinal raU of
granite — the zails of each track to be five feet apart, with the space be-
tween them graded for a horse path — the elevation in no case to exceed
80 fe^per mile. Generally one horse only to be used, with two upon

* The Boad from the State Line to Greenbush as finally located and built has grades
of 40 to 448 per mile for 9 miles.

16 HISTORICAL MEMOIR OF

the higher grades. An, alternative suggestion for the higher grades, was,
the introduction of stationary machinery, on inclined planes rising at an
angle of five or six degrees, and operated by water or horse power.
This alternative to be postponed for further examinations. The Report
says that on the line of survey recommended, with a maximum inclina-
tion of 80 feet per mile, two horses would be required for about two-
fifths of the way, for a load adapted to a single horse on the level parts.
That dividing the distance between Boston and Albany into ten stages of
19^ or 20 miles each, and taking the various ascending, descending, and
level planes, as reported by the Engineers, " twenty horses, employed
one day each will be required to convey the load of sixteen tons, exclusive
of the additions necessary on the steep inclinations." " To surmount
these acclivities will require eight additional horses. The most easy
and convenient mode of traveling would, perhaps, average three miles an
hour ; and the journey may be easily accomplished in four days." The
Board estimate the cost per ton, of heavy articles, paying the lowest rate
of freight, at $1.97, exclusive of toll to be paid for the use of the road.
As to the toll to be paid, they say, the rates by water, between Boston
and Albany were from $3 to $4 per ton, which would be per barrel of
flour, adding insurance, 28 to 30 cents — adding $1 per ton for tolls to the
$1.97, gives $2.97 per ton, or equal to 26. to 30 cents per barrel of flour
— that other articles, more costly would pay higher freight and tolls by
Railroad. The Directors add, that articles to or from intermediate places,
could bear a much higher rate of toU, " because the accommodation is
■much greater." That "the transportation from Springfield to Boston
by water, is greater than from Albany to Boston." « And all articles
from Connecticut riyer to Boston, may pay double the toU above men-
tioned, by rail, and the cost would be less than the lowest rate by water."
These estimates are for a road without stationary power. The whole
plan is upon the presumption, that the proprietors of the road, whether
the State or a Company, provide only the facilities for its use by carriers
or private associations, who were to pay tolls therefor.

On the adaptation of the Railroad to the conveyance of passenge'M, the
Board of Directors say, that upon the forgoing calculations, « an active
horse may travel twelve or thirteen miles a day, at nine miles an hour
includmg stops, and draw a weight of two and a half tons ; or a carriage

THE WESTERN RAILROAD. 17

with twenty passengers, with their baggage, at a cost, for twenty-two
horses, two men, and one carriage, at $21 for twenty passengers — each
$1.05, add $2 for tolls — making $3.05 from Boston to Albany in twenty-
two hours."

The Board next compare the advantages of the use of horse power
with locomotives. Two years only had passed since the first Beport on
the introduction of Railroads, was made by Dr. Phelps and his associates,
a Committee appointed in June, 1826. Some facts and opinions from
that Report have been heretofore given, showing the infancy of the sci-
ence in 1826. The statements and opinions presented in this Report of
1828, show that very great advances had been made, particularly in
England.

The Report says that " on the Railroads built and building in Eng-
land and France, it is proposed to make use almost exclusively of loco-
motive engines, or carriages moved by a steam engine placed within them,
of a sufficient power to draw after them, without the aid of animal power,
a succession of twenty or twenty-five loaded wagons." " These engines
are in operation with entire success, on several Railroads in England," —
and the Board examine the cost of -maintaining these engines, in England,
and conclude, that the cost of transportation on a Railroad in this
country, by horse power, will be less than in England, either by horse or
steam power. ,

As to the amount of business to be done, sufficient to warrant the ex-
pense of a Railroad, the Board of Directors went into a wide field in
procuring statistics. But it is proposed to give only such results as will
place on record the means of comparison of the business then existing
with the' astonishing results developed at subsequent periods.

The result of their extended examinations is given as 102,848 tons of
freight, and equal to through passengers, 23,475 per annum.
Estimating tolls on through merchandize at 1^ cent
per ton per mile, say 28,902 tons, and 2 cents on
the residue, gives tolls, - - $143,839

Passengers, at 2 cents per mile, ... 46,950

Total income of Soad, - - $190,789

Estimated for increased business from enlarged facilities, and reducing
3

18 HISTORICAL MEMOIR OF

way merchandize to 1 cent per ton per mile, they put the tolls, or rates
at $203,000.

Assuming the estimated cost of the Eoad as correct, and the money
borrowed at 6 per cent, for fifteen or twenty years — the interest would
be somewhat less than $200,000, and the Board add, "the prospect of
an increase of population, wealth, and business, will be a suflScient reserve
fund for paying off the principal of the debt," if the present business of
the district will be enough to meet interest and expenses. After enlarg-
ing upon the incidental advantages to be derived froni the Eoad, inde-
pendent of the income, they add, " if the results which we have endeav-
ored to exhibit as probable, can be relied upon, this great work may be
accomplished at the expense of the State, without being ultimately any
■burden upon its finances, and with the. prospect of affording, in the
income which will be derived from it, a full reimbursement of the cost,
and & permanent source of revenue.''

At the opening of the session at which this Report was presented, Gov.
Lincoln, in his message, speaks of the disposition to be made of impor-
tant propositions for public improvements by Railroads, through the Com-
monwealth, and he invites attention to the discussion, of 1st, Whether they
offer the best practicable improvement? 2d, In what manner, and
through what agency are they to be constructed ?

1. "The ease and rapidity of traveling,'' and "the immense saving of
expense," are set forth — and, he adds, " Railroads" have become of famil-
iar use in England, and their introduction into this country, so far as there
has been opportunity for • trial, ' has satisfied the most sanguine expecta- •
tions here."

The road is not a matter of local interest merely, but " the object is of
general concern," and the advantages specified " are motives for the pat-
ronage of the government " to the improvement.

At the January session, 1830, the Governor reverts to the subject of
Railroads much at large, and says, that, as opportunity has been had for
diligent and critical enquiry, the country explored, surveys, plans, and
■estimates submitted, " some decisive means should promptly be taken to
give the country, at no distant day, such improvement." He adds, " if it
is deemed of importance to the prosperity of the State, that improved
modes of communication between the capital of this and other States, and

THE WESTERN RAILROAD. 19

through different sections of our own State, should speedily be possessed,
the assistance of the government in some manner, and to some extent, in
aid of individual enterprise and exertion, must he given to the worh."

The Governor proposes the creation of a stock, upon the faith of the
State, to such an amount as the Coibmonwealth may be interested, and
eventually redeemable, as it doubtless would be, from the income and
advantages of the improvement ; that it will occasion no direct tax upon
the people, beyond the accruing interest, and to this even, might be
applied the proceeds of the sales of public lands, and other contingent
payments into the treasury.

Notwithstanding these repeated and powerful recommendations by
Commissioners and the Executive, the Legislature took no measures to
engage the Commonwealth, either in the construction of the road to
Albany, or^ indeed, any part of the interior, or to aid individuals or com-
panies to embark in the enterprise. But the business community becom-
ing impatient for some movement of the kind, petitions were presented, in
1830 and 1831, for the incorporation of private companies, for construct-
ing Eailroads in various directions from Boston, and charters foi: the
Providence and Lowell Eailroads were granted in 1830.

T^hs Boston and Worcester Railroad Corporation was chartered June
23, 1S31, to locate and construct a Railroad in or near the City of Boston,
and thence to any part of Worcester. As this formed an integral part of
the route from Boston to Albany, it is legitimately within the purpose of
this Memoir to present here some brief statistics of its origin, progress,
• completion, and subsequent operations.

The proposed capital stock was ten thousand shares of $100 each.
This was all subscribed, and the Corporation organized May 1st, 1832.
It had been previously informally organized, so far as to enable the laying
an assessment of one dollar per share for surveys and estimates. Surveys
of the whole route were made by ^obn M. Fessenden, the Engineer of
the Company, in 1831. The length of the road was about forty-three and
one-half miles. The termination at Worcester was four hundred and
fifty-six feet above the level of the Western Avenue in Boston.

The first estimate of .cost of Road and equipment was $883,000, the
road-bed to be graded for a double track.

20 HISTORICAL MEMOIR.

Computing the then existing amount of freight at 30,000 tons, this at
$2,50 per ton, would give, - - - $75,000 00

And the passengers at 54,000, at $1,25, would give, 67,500 OO

Gross receipts, .... $142,500 00

Or putting the merchandise at $3,50 per ton, and the passengers at
$1,50, the receipts were estimated at, per annum, $176,000, no estimate
being made for prospective increase of business. The annual expenses
were stated by the Engineer, $34,143.

Wote. — In 1836, the first year after the opening of the whole Road,
the receipts from passengers were - - $120,792 24

Freight, .... 59,781 42

$180,573 66
The expenses were, as per Report, - - 103,673 70

The Road was opened from Boston to Westboro', thirty-one and one-
half miles, in November, 1834, and to Worcester, July 4, 1835.

On completion of the Road and depots, including the branch to Milbury,
January, 1838, the capital stock was $1,700,000. The Report of Novem-
ber, 1862, states capital at $4,500,000. The length of all branches at
twenty-four miles.

The receipts at, - - - $1,006,129 82

Expenses, ... 515,825 72

Net earnings, ... $490,304 10

HISTORICAL MEMOIR.

On the 15th of March, 1833, the persons who were then Directors of
the Boston and Worcester Baikoad Company, were individually incorpo-
rated, as " The Western Railroad Corporation" with authority to con-
struct a Bailroad from the Boston and Worcester Bailroad in Worcester,
to Connecticut river in Springfield, and thence across it to the western
boundary of the State, in a direction towards the Hudson river. The
capital to consist of not less than 10,000, nor more than 20,000 shares, of
$100 each. Thus the Boston and Worcester Company had the exclusive
control of the charter of the Western, and of all proceedings under it.

Books of subscription were to be opened by the persons named as
Corporators, and of the Directors for the time being of the Boston and
Worcester Company.

Another peculiarity was, that, if the subscription should exceed 20,000
shares, those subscribers who were stockholders for the time 'being in the
Boston and Worcester Company, should be entitled, in preference to
others, to hold any shares subscribed by them, not exceeding the number
they then held in the Boston and Worcester Company. The sixth section
of the charter gave the right to make Branches to any place in any town
through which the Boad should pass, and to any part of any town next
'adjoining. No attempt was made to take advantage of this charter, for
one or two years thereafter.

In the meantime, the Legislature of New York, on May 5, 1834, incor-
porated the Castleton and West Stockbridge Bailroad Company, "tp
construct a Bailroad from Castleton" (nme miles below Albany,) " t6 the
State line at West Stockbridge." An additional Act, of May 5, 1836,
altered the name to the " Albany and West Stockbridge Bailroad Com-
pany," and gave authority to make a Bailroad from the Hudson river, at

22 HISTORICAL MEMOIR OF

Greenbush, to the line of Massachusetts, at West Stockbridge. The
authorized capital was $300,000. The State reserved the right to pur-
chase the Boad, after ten years, and within fifteen years from the comple.-
tion of it, — ^paying cost and ten per cent interest.

To attract attention to this enterprise, a very large meeting of its
friends was holden on February 3, 1835, at Vance's, in Canaan, New
York, composed of delegates from various counties in New York and
Massachusetts. Lemuel Pomeroy of Pittsfield was appointed chairman,
and E. Kellogg of West Stockbridge, secretary. Committees were ap-
pointed to collect statistics of business, and procure subscriptions of Stock.
C. B. Boynton of West Stockbridge make an elaborate Report, with
numerous statistics of the business of Berkshire. These afforded valua-
ble aid in the subsequent prosecution of the enterprise in Massachusetts
and New York.

The stock of the Albany and West Stockbridge Company was duly
subscribed, and the Company was organized, on or before May 23, 1835,
by the choice of directors — one of which was required by the charter
to be a resident of each of the counties through which the Hoad should
pass. Samuel Cheever was appointed Superintendent, and William H.
Talcott Engineer, and surveys and estimates were ordered and made
upon several routes.

At the same time, a charter was granted for a Railroad from Hudson
to the line of the State, at West Stockbridge. The stock of this Com-
pany was subscribed, — principally in the city of New York, — and the
Company was duly organized, the necessary surveys and estimates were
made, and the road was located by way of Groat's or Chatham Four
Corners. The grading was commenced at an early day.

Much anxiety was expressed to have the books for subscription to the
stock of the Western Road opened. But no .concerted movement was
made to effect this object, until the opening of the Boston and Worcester
Road to Westboro, in November, 1834, and, even then, the efforts were
confined to Springfield, and the towns between there and Worcester.
There was an entire want of confidence in the. enterprise, as a financial
undertaking — and very many doubted even the practicaUlity of its exe-
cution.

About this time, an informal offer was made by parties of the city of .
New York, supposed to be connected with the Stock Exchange, to sub-
scribe the whole capital, if they could have control of the Company and
Stock. This was declined by Mr. N. Hale, in behalf of the corporators, —
and with his characteristic prudence' and conservatism — on the ground
that it might throw the whole enterprise into the vortex of the stock
gambling operations of Wall strieet — rand in addition, if the stock was

THE -WESTERN EAILEOAD. 23

paid up, the control of the Eoad, for which so much time and money had
been expended, in order to promote the business of Boston, and the inte-
rior of Massachusetts, would be in hands interested to defeat this ob-
ject, and divert the business to the city of New York.

Before offering the books for subscription, it was deemed desirable, that
a survey and estimate should be had, in order to meet the prevalent
doubts of the practicability of the enterprise, and fears as to the cost
of construction. A meeting was accordingly held of citizens of Spring-
field, on January 2, 1835, when a Committee of Correspondence and in-
quiry was appointed.*

After the necessary inquiries, that Committee called a general meeting
at the Town Hall, in Springfield, on February 16, 1835, at which there
was a large attendance. Mr. George Bliss, from the Committee, gave a
statement of the inquiries made, and the correspondence had — when, after
discussion, the same Committee was instructed to " take measures for call-
ing a Convention of Delegates from the various towns on or near the
proposed route of the Railway, to devise suitable ways and means for
making an immediate survey of the route, and to adopt other measures to
facilitate and promote the object."

On February 18, the Committee issued a circular, calling the Conven-
tion, to be held at Worcester, on the 5th of March ensuing.

That Convention was numerously attended by upwards of one hundred
Delegates, and by Directors and the Engineer of the Boston and Wor-
cester Railroad Company. ,

N. P. Denny of Leicester called the meeting to order, and Caleb Rice
of Springfield was appointed Chairman, and R. A. Chapman, Secretary.

The objects of the Convention, and the importance of prompt and
energetic action were freely discussed; and all parties, with one excep-
tion,t expressed a willingness to contribute the necessary means for the
expenses of the preliminary surveys and estimates. A Committee of one
from each town represented and one from the Boston and Worcester
Board, was appointed, who reported resolutions as follows : —

1-2. That a Railroad from Worcester to Springfield was greatly to be
desired — was feasible, and ought to be entered upon without delay.

* William B. Calhoun, George Bliss, George Ashmun, Charles Stearns, Justice
Willard, W. H. Bowdoin, and J. B. Sheffield.

f Mr. Rejoice Newton, in behalf of the delegation from Worcester, stated frankly
and with courtesy, that, as a Railroad was provided from Boston, making Worcester a
fermm«s,-their citizens believed the extension of the road would be injurious to them,
and it must not be expected of them to contribute to the proposed extension ; but that
they would throw no obstacles in the, way of it.

4 HISTORICAL MEMOIR OF

3-4 That an accurate survey and estimate be made the present sea-
}n ; and that a Committee of three in each town interested, be appointed
) solicit subscriptions therefor.

That an Executive Committee of five be appointed, to procure surveys
nd estimates, and obtain information in regard to the construction, and
robable income of the proposed Goad, with power to appoint a Treasurer.

That the Directors of the Boston and Worcester Company be requested
) organize the "Western Bailroad Corporation as early as in their opinion
le stock can be taken up, and on the terms on which the Boston and
P'orcester Corporation was first organized.

George Bliss, Caleb Rice, and W. H. Bowdoin, of Springfield, Joel
Torcross of Monson, and N. P. Dewey of Leicester, were appointed an
Executive Committee, " to procure accurate surveys, a location, and esti-
lates for the Boad as far as from Worcester to Springfield." The Town
!ommittees were named, and instructed to report to the Executive Com-
littee.

The first object of the Executive Committee was to procure the requi-
te funds for this volunteer service. An appeal was made to the inhabit-
Qts of all the towns on the line, and the sum of seven or eight thousand
ollars was raised, and placed in the hands of the Committee.

By consent of the Directors of the Boston and Worcester Company,
leir Engineer, John M. Fessenden, was employed for the survey, and he
id two parties in the field early in May, 1835. These operations were
rinci^lly under the supervision of the Chairman of the Executive
lommittee. The Engineer made a partial report to the Committee July
3t, of the same season. He examined, also, the proposed route from
pringfield to Hartford, with a view to facilities for the Boston and New
'ork travel via. Springfield. He reported the distance between Worces-
sr and Springfield at fifty-three and one-half miles, with no grade exceed-
ig thirty -four feet to the mile.

he estimated cost of grading, masonry, and engineering,

and every contingency, was - - $589,000 00

aperstructure, including turn-outs, ($8,000,) - 428,000 00

and damages, and fencing, engines, cars, and depots, 183,000 00

$1,200,000 00
istance, Springfield to Hartford, 23 miles, as above, 400,00Q 00

hirty-six and one-half miles, with the heaviest edge rail, $1,600,000 00

The Executive Committee devoted much time and labor, in collecting
le actual statistics of travel and freight, by sending agents into every
wn interested, and by the examination of stage books, &c. They re-

THE WESTERN RAILROAD. 25

ported the then existing number of passengers, who would probably take
this route, at, per annum, 55,510, which at $1.75 (between "Worcester and
Springfield), would give - - - $97,142 00

42,004 tons of merchandise, at $4, - - 168,016 00

$265,158 00
Less Mr. Fessenden's estimate of annual expenses, 85,000 00

Net income, .... $180,158 00

— ^nearly sixteen per cent, on his estimated capital, or cost of the Road.

The Executive Committee made a full and detailed Report to the
Directors of the Boston and Worcester Company, under date of July 7,
1835, and annexed to it the Report of the Engineer. This pamphlet (of
sixteen pages) was extensively circulated, as the basis of procuring sub-
scriptions to the stock of the Company.*

The reasons for extending these examinations from Springfield to
Hartford, will be apparent, when it is stated, that, early in 1835, a move-
ment was made at Hartford, for procuring the extension of the Boston
and Worcester Railroad directly across the country to Hartford. In fur-
therance of this movement, a Railroad Convention was holden at Hartford,
March 25, 1835, (in pursuance of a call of a meeting on the 16th), of
" Delegates of all the towns between New Haven and Boston, interested
in connecting New Haven with the Boston and Worcester Railroad, in
the most direct route practicable. Resolutions to this effect were adopted,
and a Committee appointed to obtain information, and apply to the Connec-
ticut Legislature for a charter. And a Convention was appointed to be
held at Worcester, July 2, 1835, to consider " the subject of extending the
Boston and Worcester Road towards the City of New York," delegates
to be invited from New York, Boston, and all the towns interested in the
various routes proposed. Committees were appointed, and among them,
one to enquire and collect facts in rdation to a Railroad from Hartford to
Albany.

In the meantime, the Legislature of Connecticut, in May, 1835, incor-
porated Henry Hudson and others, by the name of " The Worcester and
Hartford Railroad Company," *' to construct a Railroad from the termina-
tion of the Hartford and New Haven Railroad, in Hartford, to the north-
em boundary of the State, in the most direct and feasible route towards
Worcester, in Massachusetts." The surveys for this route were industri-
ously prosecuted by Alexander Twining, an Engineer of large experience,
and high character, and these whole proceedings; including a proposed
movement between Hartford and Albany, indicated that applications would

* This Report was printed in full in the Hampden Whig, Extra, of July 30, 1835.
4

26 HISTORICAL MEMOIR OP

be made to the Legislature of Massachusetts for charters within that State,
to construct a Road from Worcester to Albany (via. Hartford), in compe-
tition with the Western. The tendency of such a movement to distract
the friends of the latter Company, and discourage subscriptions to the
stock,' imposed a duty upon the Executive Committee to take all fair
measures, not only to defeat the Connecticut project, but to show its im-
practicability, or its entire want of merit, when compared with the route by
Springfield. The sequel will show, that, although this required much
time and labor, it was successfully accomplished.

The meeting called by the Hartford Committee, was holden at Wor-
cester, July 2, 1835, was very largely attended, and in session two days.
The Hon. Levi Lincoln presided. Twenty towns and cities in Connecti-
cut, and fifteen from Massachusetts, were represented. Distinguished
gentlemen from Hartford, New Haven, Norwich, and Hampton, with a
large delegation from Springfield, were of the number. A business Com-
mittee reported, " that it was not expedient for the meeting to express
any opinion as to the best mode of extending the communication from
Worcester towards the City of New York," but they submitted a resolve,
■" that such a communication towards the City and Stale of New York was
important, and that the members of the Convention be requested to com-
municate to the Convention information in relation to the several routes
proposed." This led to a very full and free discussion. 1. Mr. N. Hale
gave statements concerning the Boston and Worcester Road. 2. The
Reports of the (Springfield) Executive Committee, being just finished, Mr.
Bliss, their Chairman, submitted a full statement of the surveys and esti-
mates for the route to Springfield, and thence to Hartford, with the statis-
tics collected. 3. Mr. John A. Rockwell gave a minute statement of the
advantages of the Norwich route. 4. General Johnson and others, of
Hartford, represented the peculiar advantages of the direct route, as the
true one to extend a Railroad toward the City of New York, and, as
General Johnson expressed it, "eventually to form a part of the great
route from Canada to New Orleans."

Mr. Nathan Smith, of New Haven, late TJ. S. Senator, was in favor of
the direct line, and Major Putnam, of Hartford, stated that letters had
been received from Hudson and Troy, urging a Railroad from Hartford
to West Stockbridge, and saying, that, in winter, aU communication be-
tween Hudson or Troy and New York, would be through Hartford and
New Haven.

5. Messrs. White of Windham and Cleveland of Hampton favored an
intermediate line between Hartford and Norwich, via. Willimantic. Mr.
N. Smith, alluding to the route via. Springfield, said, " We can promise
ihis : Boston to Worcester in two hours, to Hartford four hours, to New

THE "WESTERN RAILROAD. 27

Haven two hours, and by boat to New York five hours ; in all, thirteen
hours."*

In view of the progress and success of the Worcester, Lowell, and
Providence Railroads, and the interest produced by the Eeport of the
Executive Committee, the Directors of the Boston and Worcester Com-
pany were urged to open books of subscription for stock in the Western
Railroad Company. To this they responded on July 15th, 1835, by an
advertisement, that on August 3d books would be opened at places named
in Boston, New York, Springfield, Worcester, Albany, Hudson, Pittsfield
and Lee, "to remain open for fen days from said 3d of August." The
terms of the subscription recite the importance of the payment of $100,-
000 at once, for purposes of surveys and preparations for com'mencing the
work, and that the subscribers take the number of shares set against their
names, on the following conditions :

1. That an assessment of $5 be laid on each share as soon as practi-
cable, to be applied to payment for surveys, estimates, and construction
of the Road.

2. That the work be commenced in such manner as to complete at the
same time the Road from Worcester to Springfield, and from the bound-
ary line of New York, (there connecting with such Railroad as shall be
made to that point from the Hudson River,) to either Lee or Pittsfield,,
whichever of those two towns should be ascertained, on the completion of
the definitive surveys^ to be in the most eligible route for the Railroad
from the Hudson River to Springfield.t

3. That if over twenty thousand shares were subscribed, the stock-
holders of the Boston and Worcester Company should have a preference
to take a number equal to the number of shares held by each, in the Bos-
ton and Worcester Company, August 3, 1835,

Subsequently, when the books were re-opened, the following were
added, under date of October 9, 1835. But they were not required by
the charter.

4. That the Corporation should not be organized, until two millions
were subscribed by responsible parties.

5. That the subscriptions shall not be binding, unless the whole num-
ber of shares shall be subscribed. on or before the first day of April next.

* See Boston Daily Advertiser, July 9tli, 1835, Springfield Republican, July 11th, and
Worcester Palladium and Spy. ' The Palladium remarks of these proceedings, that
"the members assembled to determine which of four or five routes was the best, and
left to see which should be first in the field."

+ This was inserted to carry out an understanding with the New York and the
Berkshire subscribers, that the avails of their subscriptions should not be all applied
to the eastern part of the'line, and the western portion not prosecuted at aU, or at a
remote period.

28 HISTORICAL MEMOIR OF

6. That the construction of the Road shall not be commenced, till the
sum of ten dollars per share shall be assessed and paid in on each share.

The most unwearied exertions were made to procure the necessary sub-
scriptions. There was a universal belief that the stock would never be
productive, and the most sanguine friends of the enterprise could only
urge the argument, that the incidental advantages of opening this great
thoroughfare, ought to induce the whole population in the cities, and in
the country, to subscribe according to their ability, even if the subscrip-
tions themselves proved a dead loss. The City of Boston and the neigh-
boring cities were thoroughly canvassed ; meetings were held in all the
towns on the route of the Eoad, and the citizens urgently appealed to. The
Chairman of the Executive Committee for surveys, &c., personally visited
Albany, Hudson, and the City of New York, and had conferences with
the friends of the cause in each of those places, and considerable subscrip-
tions were had in each. But still the aggregate amount was much in
arrear. Additional meetings were had in most of the interior towns ; and
subscribers were urged to increase their subscriptions. This was done in
Springfield, and in some other places. But the desired limit was not
reached. About seven thousand shares were wanting, when the books
were closed on August 13, 1835 ; eight thousand and five hundred having
been procured in Boston and vicinity, and four thousand and five hundred
in other places.*

As a last resort, it was, on full consultation, determined to call a large
mass meeting in Faneuil Hall, and to invite, and secure, the attendance of
distinguished gentlemen from Albany and Hudson, as well as gentlemen
from Boston; Springfield, and other interior towns of Massachusetts, to
address the meeting.

In pursuance of invitations thus given, a very large meeting assembled
in Faneuil Hall, on the evening of October 7, 1835. The floor and gal-
leries were filled at an early hour. Hon. D. Henshaw called the meeting
to order, and Hon. Abbott Lawrence was appointed chairman. Delega-
tions were present from Albany and Hudson, and all the interior towns
on the route.

Mr. Lawrence addressed the meeting briefly, when Mr. N. Appleton
introduced a full report and resolutions which were read.

Hon. Hermanns Bleeker of Albany introduced a statement, prepared
by the delegation from that city, which was read by Mr. Eiiott of Schenec-

* The only place where the subscriptions fell short of the anticipation, was in the
City of New York, and the reason assigned in a letter from that city was, that the
Road would cause a diversion pf the trade of Albany from New York to Boston, and
the New Yorkers would "Jtot let Boston people come Yankee over them."

THE -WESTERN RAILROAD. 29

tady. Mr. Bleeker then addressed the meetings urging the importance of
the proposed enterprise, and closed by saying, " Whether Boston decide
to" make the Road from Worcester to West Stockbridge or not, the Road
from Albany to West Stockbridge will be built." The meeting was fur-
ther addressed by A. Walker, H. Williams, B. F. Hallett, and W. B.
Calhoun.* Hon. Edward Everett, amid great applause, closed the dis-
cussion. Resolutions were adopted for appointing a Committee of six at
large, and three for each ward in Boston and South Boston, and for each
city in the vicinity, to solicit further subscriptions. The Committee of
three were pledged to call upon every man in their several precincts, in
person, and urge upon each one, as a matter of duty, as well as of interest,
to do their share to advance this great work.f

The Committee went diligently to work, making personal application to
all classes, — the capitalist, the merchant, the professional man, the me-
chanic, the carman, — to take from one to five, ten, twenty, one hundred or
more shares ; and although this appeal was met by almost all for small
amounts, yet, upon comparing the returns in the city and the interior, only
18,300 shares had been taken, lieaving a deficiency of 1,700.

Nothing daunted, a new meeting was called in the Supreme Court-room,
Boston, on November 20, with Mr. T. B. Wales as Chairman. Mr. George
Bond, from the General Committee of the Faneuil Hall meeting, submit-
ted a statement of the proceedings of that Committee, and the result.
The meeting was addressed " with much spirit " by some eight or ten gen-
tlemen, when the following resolutions, offered by Isaac Parker, Esq., were
adopted : that, " in the opinion of the meeting, the construction of the
Western Railroad is of vital importance to this community, and that the
project should not be abandoned, while any just and proper measures are
left untried for its accomplishment." Additional Committees were ap-
pointed, and all enjoined to persevere, till the capital of two millions should
be secured. All the Committees were requested to meet at the old Com-
mon Council-room, on November 27, at 7 P. M., " to adopt measures for
prosecuting their duties."

By these persevering efforts, the required amount was obtained by De-
cember' 5, 1835, with sufficient surplus to provide for losses and contin-
gencies.! The Directors of the Boston and Worcester Company gave

* Mr. Calhoun stated that the towns between Worcester and the river, exclusive of
■Worcester, had subscribed $300,000, and that Springfield had taken one-eighth of the
$2,000,000 wanted.

f See Boston Daily Advertiser, October 8 and 9, 1835, Springfield Republican, Octo-
ber 10, and Boston Atlas.

J There were over 2,200 subscribers to the stock.

30 HISTORICAL MEMOIR OP

the notice required by the charter for a meeting of the subscribers for or-
ganization, to be holden at the Court House, in Boston, on the 4th day of
January, 1836. On that day the Corporation was duly organized, by the
choice of the following Directors: Thomas B. Wales, William Law-
rence, Edmund Dwight, Henry Rice, John Henshaw, Francis Jackson,
and Josiah Quincy, Jr., of Boston, and Justice Willard and George Bliss
of Springfield.

At the meeting of the Legislature in January 7, 1836, Governor
Everett, in his message, alluding to the Western Railroad, remarked:
" It is a matter of congratulation, that the subscription to the capital stock
to the amount of two millions of dollars, has been filled." " I regard this
enterprise as promising benefits to the people of this Commonwealth, to
an extent not easily to be estimated." " It will place the State in direct
connection with the most extensive system of natural and artificial inter-
nal communication, by canals, railroads, rivers and lakes, which exists on
the surface of the globe." " It will restore to her a large natural com-
merce, which has left her, and retain that which is rapidly departing in
the same direction." " Should the work, in its progress, stand in need of
resources beyond the reach of the enterprise and means of the individual
citizens by whom it is undertaken, it is believed that the public patronage
could be safely. extended to it, as a project of vast general utility, whose
successful execution would form an era in the prosperity of the State."

At the first meeting of the Directors, Thomas B. Wales was chosen
President, Ellis Gray Lorjng Clerk, and Josiah Quincy, Jr. Treasurer.
A Committee was appointed to consider and report upon the system to be
adopted for the construction of the Road. After diligent inquiry, a ma-
jority of the Committee reported in favor of employing engineers of ex-
perience and science, and committing to them the professional execution
of the work, under instructions to be given them by the Board, from time
to time. A minority recommended the appointment of a practical super-
intendent, who should employ engineers, and such assistance as he judged
necessary, to locate and construct the Road under his direction. The plan
of the majority being adopted, they, under authority given them, reported
that " they succeeded in securing the valuable services of Major William
Gibbs McNeil as Chief Engineer, and Captain William H. Swift as Resi-
dent Engineer of the Company — the latter to devote his whole time to
the survey, location and construction of the Road." These appointments
were accordingly made. In aid of this organization, George Bliss was, .
on March 16, 1836, appointed General Agent of the Corporation. And
at a subsequent meeting, it was " ordered that the General Agent be au-
thorized, in behalf of the Corporation, to make aU contracts, and transact
all business, which he may deem necessary for its interests ;" that he " de-

THE WESTEEN EAILROAD. 31

vote his whole time to the work, and be responsible for its execution."
The engineers were " instructed to cause the line between Worcester and
Springfield to be examined and surveyed, and to report the results to thg
Board as soon as convenient."

At the meeting of stockholders for organization^ they instructed the Di-
rectors to apply to the Legislature for aid in the construction of the Road ;
and a petition was presented by Mr. George Ashmun, on January 16,
1836, and referred to the Committee on Banks and Banking, and ordered
to be printed.* The petition represented, that subscriptions to the stock
of the Company were by over 2,200 subscribers, (averaging less than
$1,000 each,) and that an assessment had been laid ; that the stock " was
widely diffused, in order to equalize the burden upon various parts of the
State ; that it was taken less by large capitalists, than by men of limited
means, and it was supposed that the prescribed capital would be suflScient,
when the charter was granted ; but that a larger experience proved that
another million of dollars would be necessary ; that the stock being thus
far taken with a certainty of no direct profits to the holders, but with a
view to the public interests, and procured after great labor, private con-
tributions were exhausted, and no hope remained, but by an appeal to the
liberality, justice, and patriotism, of the Legislature." And they add :
" This appeal your memorialists now confidently make to the representa-
tives of the people. The work, in which they are engaged, is emphati-
cally the people's work. They are but the agents and stewards of this
great and flourishing community, and, as such, they present this great en-
terprise to the patronage of the people."

Waiving, /or the present, a request that the Commonwealth would make
a direct grant by subscription to stocky or a guarantee of the credit of the
Company, by a loan of the scrip of the State, — they say, they do not
propose a grant from the Treasury, but that the Legislature would give
the Company facilities for raising an income themselves, by an Act of
incorporation for a Bank, to be called " The Western Railroad Bank," to be
located in Boston, with a capital of five millions of dollars, the usual bank
tax of which shall be paid to the Corporation for twenty years. Books
of subscription to be opened in every county in the State, and if a surplus
was subscribed, the stock to be equitably distributed by Commissioners
appointed by the Legislature. The petitioners allege that this additional
bank capital will be needed, and indeed rendered indispensable, by the
withdrawal of several millions of the United States Bank capitaLt

* House Documents No. 16, 1836.

f The charter of the United States Bank expired in 1836, and a renewal of it had
heen refused.

32 HISTORICAL MBMOIE OP

At the same session of the Legislature, a long memorial, of sixty pages,
was presented, as drawn up by a large committee of citizens of Boston, con-
sisting of Henry Lee, George Bond, T. B. Curtis, Ozias Goodwin, Horace
Gray, and others, and signed by 1,736 individuals, praying for the estab-
lishment of a Bank, with a capital of ten millions. This was supported
by thirty-two petitions from various parts of the State, in aid of it. These
were all referred to the Committee on Banks, as were also several petitions
from the counties of Berkshire, Hampden, Hampshire, and Worcester, in
aid of the petition of the Western Bailroad Corporation.

The Corporation was fully heard by the Committee, and upon all the
foregoing petitions, Mr. William Lawrence, from the Committee, on
March 11, 1836, reported in the House, "An Act to establish the State
Bank of Massachusetts."*

The principal features were — a capital of ten millions, half the stock
to be subscribed and owned by the State, and paid in, in gold and
silver, or State scrip, at 4|- per cent, interest, to run twenty years.
For the remaining half, books to be opened for subscription, in
each county of the State. If a surplus was subscribed, the largest
subscriptions to be reduced, &c. No bills under five dollars to be issued
and a Branch might be, established in each county in the State, the
county voting for the same, and fixing its location. The tenth section
required the Directors to subscribe for 10,000 shares in the Western Rail-
road Corporation, and to pay all assessments on the same — the Bank to
retain one-half the Bank tax on its capital, or $25,000 semi-annually,
and the receipts and income on the stock in the Road — until the said tax
and receipts should reimburse them for payments of the assessments,
(keeping an interest account, &c.)

This bill created much excitement. The provisions were skillfully
drawn to enlist the support both of the city and country. But the great
majority of the Democratic party was decidedly opposed to such a mon-
ster hank, as it was termed, or indeed, to any considerable increase of
banking capital. The friends • of the Western Railroad were present in
great force from the parts of the State locally interested — and fully re-
solved, that the State must give that enterprise substantial pecuniary aid
in one form or another ; and the large mass of business men were
clamorous for an increase of bank capital, on the withdrawal of the United
States Bank. Both these classes were friendly to substantial grants to
the Western Railroad, and it was soon apparent to the anti-bank portion
of the Legislature, that, if these parties persevered unitedly, they could
carry the reported bill, which was being pressed by its friends. A motion

* House Document TSo. 43, 1836.

THE WESTERN RAILROAD. 33

by Mr. Rantoul, on March 22, to postpone it to the next session had
failed — it was being debated on the 24th and 25th. Its opponents
became alarmed. When, on the 25th of March, on motion of Mr. Hub-
bell, a Democratic member from Lanesboro', a special committee of one
from each county was appointed, " to consider the expediency of granting
aid to the Western Eailroad Corporation, by lending the credit of the
State, upon a pledge of stock, or by subscribing for stock of said Corpo,-
ration, or by appropriating a portion of the funds of the State, — and
that said committee report as soon as practicable. (See Appendix C.)

On the next day, (March 26,) the Committee reported a bill, directing
the Treasurer to subscribe one million dollars to the stock of the Corpo-
ration, and pay all assessments thereon, and providing that three of the
nine Directors should be chosen by the Legislature. This bill passed to a
third reading March 28, by a vote of two hundred forty-three yeas to
nine nays, and to be engrossed on the 29th, and it was sent to the Senate.,
where a provision was added that no assessment should be paid by the
Treasurer, until seventy-five per cent, of that assessment had been paid by
the private stockholders, and the bill then passed its proper stages in both
Houses, and to be enacted, on April 4, 1836. The writer had the pleas-
ure of carrying the bill to Gov. Everett, at Charlestown, who signed it on
the same day — saying he had never given his signature with more pleas-
ure — and the perfected act was in the oflSce of the Secretary of State.,
before the close of business for the day.*

In the meantime, the Bank bill, was, on the 30th March, rejected in
the House, by yeas two hundred fifteen, nays two hundred sixteen — ^but
on reconsideration the next day, it was passed to a third reading, by yeas
two hundred forty-two, nays two hundred forty-one. But the bill for the
subscription to stock being considered. safe, the Bank bill was indefinitely
postponed, on motion of Mr. Lawrence, who had reported it.

The passage of the former biU was justly considered as guaranteeing
the success of the Eoad, and was the cause of great congratulation among
its friends. For, at that time, no one doubted the ability and disposition
of the private stockholders to pay up their assessments in full. The
sequel will show much embarrassment from this source.

Under this Act, the Legislature chose Messrs. Isaac C. Bates, William
Jackson and R. Bantoul, Jr., as Directors, and at the next annual meetr
ing the old Board was elected, excepting that the three State Directors
took the place of Messrs. Lawrence, Rice and Willard.

* By an Act of April IS/ISSV, the Legislature gave the Treasurer of the State
authority to issue scrip to pay their assessments, and established a Stock Sinking
Fund, for re-imbursing the scrip. This is in addition to the 'Westem Railroad Sinking
Fund.

5

34 HISTORICAL MEMOIR OP

While these proceedings were pending in the Legislature, requiring
the utmost attention of the officers of the Corporation, the petition of
Henry Hudson and others, of Hartford, was on January 13, of the same
session, presented, asking for an act of incorpoi'ation for a Eailroad from
Worcester to the line of Connecticut, in a direttion towards Hartford, and
on January 15 the petition of Lester Filley and others of Berkshire was
received, asking a similar grant for a Eailroad from West Stockbridge to
the line of the same State.* Both were referred to the Committee on
Railways and Canals.

The Directors of the Western Eailroad Company appointed Messrs.
Bliss, Quincy and Jackscin a Committee to present a remonstrance to the
Hudson petition, and authorized Mr. Bliss to employ counsel. At the
hearing, an elaborate Report by Alexander Twining, their Engineer, was
read. The hearing was a protracted one of several days, and many wit-
nesses were examined on both sides. The Directors of the Western
Company considered the scheme as a diversion to discourage the Legisla-
ture from granting them aid, for fear of a competing line, and as tending to
embarrass the collection of their assessments, then vitally iriiportant, as
the work could not be commenced until $10' was paid in on every share.

The Engineer made the distance from Worcester to the Connecticut
line on the most favorable route 25.40 miles, thence to Hartford 42.10,
total 67.4 miles. The entire cost {including horse path) in Massachusetts,
$1,497,619.21, and the cost in Connecticut one-tenth per mile more than
in Massachusetts. The route required a tunnel of over a mile (estimated
to cost $165,000 1) one bridge of 1000 feet 45 feet high ; a viaduct of 800
feet 80 feet high ;• a rock cut of 800 feet 40 fefet deep; an embankment df
1800 feet 45 feet high; one viaduct to cost $100,932, and sundry other
heavy works ; maximum ■ grade, 45 feet. At the hearing, it was under-
stood that explorations had beeii made from Hartford, via. Otis towards
West Stockbridge, clearly indicating a purpose for a competing ■ Eoad to
the Western from Worcester to the western boundary of the State.

The Committee reported in the Senate that the petitioners have leave
to withdraw. The Report was fully discussed and accepted by a large
majority. In the House, William Lincoln, Esq., of Worcester, moved
that the Committee be instructed to report a bill. This was opposed by
several members, on the ground that it was an attempt to defeat and em-
barrass the Western Soad, and the motion was promptly rejected and the
Report accepted.

The surveys on the Western Eoad were commenced in April, 1836, by

* The application of Hudson and others was supported by two or three petitions
from citizens of Worcester County; and among them was one by Rejoice Newton and
others of Worcester.

THE WESTERN RAILROAD. §§

two parties of Assistant Engineers, and they were prosecuted with dili-
gence, under the immediate supervision of -the Resident Engineer, during
the whole of that year ; and in June of the same year three parties were
placed in the field west of Connecticut . River. The portion of the line
between Worcester and Brookiield, embracing thp Charlton and Spencer
summit, being found the most difJcult, very extended surveys became
necessary there. A line of leyels was, traced for fifteen miles northerly
and southerly on the, summit, of the ridge, to ascertain th|e lowest depres-
sion. Several independent lines were then run entirely throiigh this di-
vision, with cross lines connecting them at intervals.

The route finally recommended by the Enginecirs, and on personal ex-
amination adopted, by the Directors, involved so large a deflpction to the
South from a direct line,and an inc^'ease of distance, that a line was sur-
veyed, passing , North of New "Worcester, near Henshaw Pond, a little
South of the village of Leicester, and thence over Grout's Summit, in
Spencer, to Brookfiftld; but no route feasibly direct was found there with-
out grades of from 80 tp 110 feet for six miles. A more northern route
still was attempted from Worcester through Rutland, Barre, and down
the Ware and Chicop^e Rivers, but the summits were found much higher
than those of Spencer or Charlton. The Charltpn line around the Squth
end of the ^Henshaw ridge was adopted, and, under the order of the Board,
put under contract.

, But before commencing the work, it was indispensable that ten dollars
should be. paid, on each share of the stock. The Treasurer found the col-
lection of this no easy task. About ninety per cent, of the first two $5 as-
sessments was readily collected. But some parties had moved away
others had failed and were unable to pay, and others still claimed that,
when they subscribed, they were ;assured that on paying five dollars they
could surrender the stppk,, and this they were willing to do, but no farther,.
By various expe,dients, jiowever, the deficiency was so far reduced, that
an arrangement for the,- sale, of the unpaid shares, and the application of
the money donated by Messrs. Otis, Sears, and others in Boston, in lieu
of their taking stock, enabled the Treasurer to report the requisite amount
paid on eveyy share.

It was near or quite midvwinter of 1836-7, before- the first grading of
the Rpad was commencedr*

The surveys and approximate location being made on thp Second Divisr
ion, between Brookfield and Stony Hill in Wilbraham, (seven apd oner
half miles east of Connecticut River,) the En^neers,on.January 15, 1837,

* This was at the brosmng of the Worcester and Hartford turnpike, near Captain
Jonas Tucker's, in Charlton. > u ..

36 HISTORICAL MEMOIR OF

made a Report recommending the route upon which the Road is now run.
The only variation suggested, was to pass from Warren directly over the
high land through the old village of Palmer, to Sedgwick's, instead of
following the bend of the Chicopee River southerly, around by Fenton's &
Converse's, to the same point. The direct line was 1 j^ miles nearer than
by the river, but it required a grade of 100 feet to the mile, with expen-
sive work, and was of course inadmissible. The point of crossing of the
Connecticut River, and the location of the depot in Springfield, involved
local interests, and enlisted the feelings and prejudices of several parties
and localities. From Stony Hill to the river, seven and one-half miles,
an^ thence to Mount Tekoa in Montgomery, twelve and one-half miles
beyond the river, several lines were surveyed, and reported upon by
the Engineers, embracing an extent of about five miles on the river,

1. The GabotviUe, or north line, passing a little south of Chicopee
Falls, and through GabotviUe, (now Chicopee), and crossing the Connec-
ticut a little south of the mouth of the Chicopee, and thence through
Bush's Notch, and the east part of Westfield to Tekoa. It involved
grades of eighty-three feet west of the river.

2. The JEnd Brook route, crossing the river about midway between the
mouth of the Chicopee and the village of Springfield, thence to Bush's
Notch, or to the Garden Brook line at Ashley's Mills in West Spring-
field.

3. The Garden Brook line, in the general course as the Road was
finally constructed, the Road to cross the river between the Old Bridge
and Ferry street, — the precise point of crossing left undetermined, as was
the alternative of two lines north or south of Westfield River, near West-
field village.

4. A line by Mill River, in the south part of Springfield, and thence
northerly through the east part of the village, west of Maple and Chestnut
streets, to the Garden Brook line. The first two lines were favored by
parties interested in manufactories on Chicopee River.

The Engineers recommended the Garden Brook line, not, at first, defin-
ing the precise point, of crossing the rivet. They reported it the shortest
by equated distance, of the least maximum grade, and the least cost of
grading and bridging. And that a piece of land of about three acres,
twice the length in the direction of the Road, to its width, would be re-
quired for a depot. The location was proposed west of Main street,
between Ferry street and the Old Bridge, a distance of some sixty or
eighty rods. This was principally owned and occupied, in small parcels,
as homesteads by old inhabitants. In casting about for the most conven-
ient location for the line through the village, and for the depot, the agent
could see only one tract which would answer for the purpose. This was

THE -WESTERN EAILROAD. 37

the Worthington estate, extending from the hill east of Main street to
near the river, about one-third of a mile. This was a large and wide lot
northerly of the Old Bridge. It was owned by a Springfield gentleman
living in New York, and purchased for a residence. As the certainty of
the Road caused considerable speculations in lands in that quarter, the
agent, fearing this tract might be purchased, went to New York, and
secured a right of pre-emption for an agreed price, and a limited time, on
behalf of himself and another friend of the Eoad. The whole was then
offered to the Directors at its cost, if they chose to locate the Boad there ;
or a strip for the track the whole length of it fi.ve rods wide, and on the
west side of Main street additional land for the necessary buildings, ^U
free of cost. This offer was made at the suggestion of the gentleman
interested in the purchase, who was to take the residue at its cost and
interest, and disconnect the agent from the purchase, if the offer was
accepted. These propositions remained open till the Directors decided
upon the present location, and soon after the deed of the whole land was
made to the party who united with the agent in the purchase, and he paid
the purchase money and interest to the New York owner.* The impor-
tance of stating these details will appear in the sequel, when serious
charges were made against the agent for speculations, and other misconduct.

Before these questions were decided, Mr. Henry Sterns, of Springfield,
on April 4, 1837, appeared at a meeting of the Board, representing that
he owned an estate in the meadow on State street, (about one-third of a
mile south of the Garden Brook line,) which he proposed to sell for a
depot, and he wished the Directors to order a line to be surveyed to and
from it. He proposed a sharp curve from the straight Garden Brook line,
down to his land, then curving across Main street, and again north to the
Garden Brook line at the river crossing, equal to four right angles. This
project seemed so impracticable that the agent had declined to entertain
it, and Mr. Sterns complained to the Directors that the agent " had not
consulted the interests of the Company as he ought," " because he had
purchased land on the line of the Road." The proposed survey was
ordered.

In January, 1837, at the request of Mr. Isaac C. Bates, the Engineers
were instructed " to take a view of the route around the end of Mount
Tom." A reconnoisance was accordingly made by the Resident Engineer,
as per his Report of March 16, 1837. The examination commenced at
Wilbraham Mountain, ten miles east of Springfield, and thence through
Ludlow, Granby, the north-east comer of Springfield, now Chicopee, and
South Hadley, crossing the Connecticut River at Rock Ferry, thence

•
* Subsequently Charles Steams, who realized a large advance on the purchase.

38 HISTORICAL MEMOIR OF

northerly of Mount Tom, to, and through the valley of the Manhan Eiver,
Easthampton, and Southampton, to Westfield, and the Springfield line at
Tekoa. This was estimated as six miles further than the Springfield line,
and as the charter required the river to be crossed in the town of Spring-
field, no further attention was given to<this route.

The line from East Brookfield to Connecticut River, as the Poad has
since been constructed, was approved by the Directors in the spring of
1837, and it was definitely located, and, with the exception of two miles
next the river, was put under, contract in- June, 1837.

In October, 1836, the Board directed the Engineers to grade the Boad
for a single track, fourteen to twenty feet wide in the cuts, and the em-
bankments twelve feet wide at the surface. Subsequently, the President
addressed a letter to the Engineers, asking ^heir opinion on the subject.
On December 20, 1836, they submitted an argumentative answer, in which
they maintain and recommend, that the road should be graded.fora double
track, even though it was intended to lay down only a single one. But, ijf
this was not permitted, they propose that they have discretionary authority
to alter the width of the cuttings and fillingSj at such points as might seem
to them judicious and proper. This modification was made. In fact, the
deep cuts were made thirty feet wide, and the heavy embankments, twenty-
six feet, and the masonry and bridges were generally built of a width for
two tracks.
: The surveys and reconnoisances for ascertaining the best route from:
Connecticut River to the New Tori line, were very extensive. The
range of mountains, which forms the summit between the Connecticut and
the Hudson, was thoroughly examined, from "Washington on the north,
through Becket and Otis, to Tolland near the line of Connecticut, twenty-
two miles northerly and southerly. Every important depression, and
every considerable stream, passing down the mountain, was fully surveyed.
The north line, essentially as surveyed by Mr. Baldwin in 1828, had ap-,
peared the most favorable, and an approximate location was made upon it
by the Engineers of the "Western Company, under the supervision of Mr.
John Childe, in 1836-7. But numerous friends of a southern route,
through Lee and Stockbridge, thought this a preferable one ; and^ ; to
concentrate the results of a vast number of experimental surveys, an ap-,
proximate location upon it was ordered. This was. made in the spring
of, 1837, by E. P. Morgan.

The route was, from the village of Westfield southerly, ascending the
slope of Sodom Mountain to Loomis' Gap and Mt. Pisgah, by the valley
of Little Westfield River to Cobble Mountain, with a tunnel of 600. feet;
thence to the Blandford line, and, by Bush Hill, to. Spruce Swamp Sum-
mit, 1,470 feet above the bench . mark on Connecticut Biy^'') ^°^ about

THE "WESTERN RAILROAD. 39

thirty miles from its then descending thi-ough East Otisj by the outlet of
Great Pond to Nichols' Pond, near Baird's tavern, past Green Water
Pond, into the valley of Hop Brook, through a corner of Tyringham to
Stockbridge Plain and to West Stockbridge and the State line, 62.38
miles from Connecticut River; all reducible to a igrade not exceeding
eighty feet per mile.

On comparison of the North and South Eoutes thus approximately lo-
cated, it was found that the measured distance -differed but 66-100 of a
mile, though the equated lengths gave about five miles in favor of the
North Route. There were five summits on the South line and four on
the North. The average of grades* was in favor of the North. The es-
timated cost of grading and bridging the North line was $1,259,100.87,
the South line $1,232,905.45; in favor of the South line, $26,195.42.
The Engineers had reported in favor of the North line. But^before this
was known to the parties, the Board, at their request, gave the friends of
each route a hearing at Springfield, June 25, 1837. Gentlemen from
Stockbridge urged the Board to postpone all proceedings West of the
River till the next year ; but claimed, if the location was through PittS"-
field, that the parties there should assume the slock subscribed in Stock-
bridge and Lee.f

After full consideration, and an examination of both routes by a part of
the Board, they, on August 10, 1837, decided in. favor of the northern
route, through Pittsfield, and- ordered it to be definitely located, reserving
one or two points for further examination.

While the interests of the Company were thus diligently attended to,
during the year 1837, throughout the whole of Massachusetts, little was
done in the State of New York, towards securing the continuance of the
Road from the State line to Albany. The Hudson and Berkshire Rail-
road, from Hudson to the State linei at the Canaan Gap at West Stock-
bridge, thirty-three miles, had been graded in 1837, and the superstruc-
ture, with a flat iron rail had been commenced, and it was completed, and
opened for use in 1838.

The City of Albany, being thereto authorized by the Legislature,
instructed the Mayor, — E. Corning, Esq., — on October 3d, 1836, to sub-
scribe $250,000 to the stock of the Albany and West Stockbridge Railroad
Company, and the payments to be made as called for by 'the Company.
The subscription was made, but nothing paid upon it.

Though extensive surveys and estimates were made on several routes
for that rOad in 1836, nothing was done towards the construction, up to

* See Appeudix D.

f Subsequently, after one or two payments, the Treasurer. Mr. Quincy, assumed the
stock of these parties, and took a transfer of it in Taehalf of the Company.

40 mSTORICAl MEMOIR OF

the close of 1838. Frequent applications in behalf of the Western Com-
pany were made to the Directors, and several conferences had. The
agent of the Western Company made a special visit to Albany, in
December, 1837, by appointment with the Directors of the Albany Com-
pany, when the latter promised to decide upon their route, and upon the
eastern termination of it, without delay.

In Massachusetts, extensive surveys were made in 1837, and at the
same lime, the construction of the greater part of the Bead, east of
the river was in progress, requiring large disbursements. The offi-
cers of the Company had great solicitude, as to the means to meet
future expenditures. Indeed, for six or eight months in 1837, the
work on several sections was much retarded, on account of the un-
certainty, whether funds would be provided for the prosecution of the
enterprise. At the close of the year, six assessments, of five dol-
lars each, ($900,000,) had been laid, and, including the share of the
State, only $602,778.80 had been realized. In their Report to the
Legislature, January 1, 1838, the Directors say, that, owing to the extra-
ordinary embarrassm-ents during 1837, they had deemed it prudent to
postpone the collection of some assessments for several months. The esti-
mates of the Engineers for the whole line, were before the Board, by
midsummer, requiring for grading, bridging, superstructure, and land
damages, a little less than $4,000,000, exclusive of engineering, depots,
and general expenses. The funds provided were only $3,000,000 in
stock, if the whole should be paid up. And, under the most prosperous
condition of the business of the country, there was enough to dishearten
the most ardent friends of the enterprise. But superadded to this, came
the financial storm of 1837, which was winging its fearful course over the
entire land, visiting Massachusetts, and particularly Boston, and sparing
no commercial community. Those who bad subscribed to the stock, tax-
ed every energy to meet the calls. But the cold paralysis of revulsion,
has blighted the fairest prospects. The stockholders of this Company
suffered with the rest,. and it became necessary that some power, measura-
bly unaffected by the pressure, should again step forward. (Appendix
D,2).

At this crisis, a general meeting of the stockholders was held on No-
vember 23d, 1837, which was numerously attended from all parts of the
Commonwealth directly interested. They instructed the Directors to apply
to the Legislature for a loan to the Corporation of the credit of the State,
for eighty per cent, on the amount of the stock, by a state scrip, having
thirty years to run, at five per cent, payable in London with warrants for
the interest.

The petition was presented January 13th, 1838, by Emory Washburn

THE WESTERN EAILEOAD. 41

of Worcester. After briefly reciting the organization and progress of the
Company, — the efforts to get the stock subscribed, and the subscription by
the state, they say that of 20,000 private shares, there were then held in
Suffolk 1349, Norfolk 70, Hampden and Worcester 472, Berkshire 249,
and the balance was widely scattered. " That, with few exceptions, the
stockholders were active merchants, mechanics, farmers, and manufactur-
ers, and, among them, many who had lost their entire means of payment,
or at least the surplus that they had thus appropriated." That the stock-
holders were willing to pay in twenty per cent. — that the Directors say, that
compulsory process was not resorted to, " because the change of times has
destroyed the ability of subscribers, and it is their conviction, that, unless
aid is given by the State, it will be impossible to collect seventy-five per
cent, on another assessment, which will of course involve the necessity of
suspending the work." By these extracts, it will be seen that the Directors
intended to substitute the grant of eighty per cent, by the State, for the un-
paid assessments on the stock to that amount. By this the gross means
were not to be increased, and it must have been apparent, that three mil-
lions would be grossly inadequate to complete the work. The petition
was referred to a joint select Committee.*

After a full hearing by the Committee, and extended enquiries into the
condition and financial operations of the Company, Mr. Washburn on
February 3, 1838, made an able and detailed report, setting forth the
belief of the Committees of the correctness of the statements of the Di-
rectors, that they were satisfied that the business of the road had been
prosecuted with due diligence and fidelity, and, that, from the difficulties
, and embarrassments under which men of business were laboring, and
from the general derangement of the fiscal concerns of the country, it
was impossible for the Directors to collect from the stockholders the means
of prosecuting the work for any considerable length of time, and that,
without the aid of loans, they would be compelled to abandon the enter-
prise. The Committee thought the stockholders should pay in thirty, per
cent, instead of twenty and that the loan should be- limited to seventy per
cent, to be paid in installments from time to time as the assessments laid
were paid, and, as evidence should be given, of the expenditures of the prior
installments ; that a sinking fund should be provided, to which should be
paid any profits on the sale of the scrip, and, after the road should be
opened for use one per cent, on the amount of the loan, should be annu-
ally paid into said fund, from the income of business, and the whole placed
at interest, for the final redemption of the scrip. They accordingly re-

* Messrs. 'Washbum, Duncan of Haverhill, Edgell of Framingham, Phelps of Hadley,
and Ives of Westfield, of the House, and Messrs. Hudson, Willey, Shaw, and King of
the Senate.
6

42 HISTORICAL MEMOIR OF

ported a bill to that effect granting the credit of the State for $2,100,000,
by the issue of a scrip, payable in thirty years from dates of issue, at five per
cent, interest, — interest and principal payable in London. The Bill was
supported by a masterly and eloquent speech, by Mr. Washburn on Februa-
ry. .14th. In the course of it, he referred to the. opinion of the Engineers
that the Eoad could be finished for four millions of dollars, and that he
believed the estimate a fair one. This grant would thus leave one mil-
lion to be paid by the stockholders, in addition to the thirty per cent, on
their stock.

In the House, an amendment was offered, requiring fifty per cent, to be
paid on all the private stock, before any part of the scrip should be de-
livered..- This was negatived by 148 to 250. , Another, to increase the
Directors to eleven, with five to tfa« State ; this was rejected, as was one
to give the State four Directors, instead of three, out of the nine. The
bill passed the House to be engrossed, February 17, 1838. The Senate
made some slight amendments, and it had its final passage and approval,
February 21, 1838. (Appendix K)

This grant gave a new impulse to the work. , Mastward of Connecticut
River, the grading, bridging and masonry were vigorously prosecuted dur-
ing 1838, the materials for superstructure contracted for, six miles of the
track laid*, depots established, engines and cars contracted for, and the land
damages principally settled. West of the river, the lines were definitely
located, (except, through, the villageof Westfield,) the Eoad from Chester
Factories to the State.^boundary, thirty-four and one-half miles, was put
under contract, and the work upon most of it commenced.
I It was matter of deep regret that, i^tithe close of 1838, no measures
had been taken towards the construction. of. the Albany and West. Stock-
bridge Eoad; and at a meeting of the Directors of the Western in April,
1839, it was. " resolved, that, in the opinion of this Board, it is important
that arrangements should be immediately made to secure, if practicable, a
communication by Eailroad from the western terminus of the Western
Eailroad to the interior of New York, either by way of Hudson, Catskill,
Albany, or Troy ; and that Messrs. Pomeroy^ Quincy and Blis^ be a Com-
mittee to visit those places, confer with persons interested, and make such
/arrangements, as they; think, expedient, sulgect to .the approval of the
^fi^f^." The Committee attended to that duty, but the only effect was
jthat a large meeting was held. in Albany, and assurances were given "of
the adoption pf energetic measures to secure the prosecution, of that .en-
^terpri^e, during; t|bje ^ear 1839."

Yet tiie officers f^ ,t))e Western Company had much anxiety on the
.subject. Tlie authorized wpjtal of the Albany Company was $650,000.
jtJpcin $300,000, ten per c,ept, fiftd been paid in for expenses of surveys,

THE WESTERN RAILROAD. 43

&c. It was believed that the holders of that stock did not consider it in-
trinsically of much value ; and it was possible that a majority of it might
be quietly bought up, and the control of the Company pass into the hands
of parties, who, if of the city of New York, might be disposed to embar-
rass an enterprise, the object of which was to divert business from that
city to an eastern competitor. It was not believed that the Albany gen-
tlemen would allow such a movement if known to them ; but the possibil-
ity of it, coupled with the absence of all effort to construct the Bbad,
created anxiety in some quarters. During 1839 and the early part of
1840, the general agent of the Western Company had frequent confer-
ences with the gentlemen interested at Albany, urging them to construct
their Boad. As one step toward it, they, in May, 1839, procured the
passage of an act of the Legislature, authorizing the city of Albany to
borrow $400,000, and use it in subscribing for, or in purchasing the stock
of the Albany and West Stockbridge Eailroad Company — ^provided the
act should be approved, at a legal meeting of electors held for the pur-
pose. The Engineer of the Albany Company had, in July, 1836, re-
ported the estimated expense of constructing the Road to Chatham Four
Comers, and adding half the expense of a double track on the Hudson
£oad, thence to the State Line, to be used in common with the Hudson
Company, at $586,280.73! The authorized capital was now $650,000.
The loan and subscription now authorized, but not yet subscribed, of
$400,000, added to the $250,000 before authorized and subscribed, ab-
sorbed the whole capital stock. And, even if these estimates were cor-
rect, no provision was made for an independent Bead from Chatham to
the State Line, if any satisfactory arrangement could not be made with
the Hudson Company. Nothing further practically effective was done in
1839.

After the choice of Directors of the Western Company, in February, 1838,
and in succeeding months, much difference existed in the Board on the
subject of salaries of various officers, and the duties required of, and to be
performed by the agent and others. In April, 1838, the Board appointed
two of their number, Messrs. Charles Hudson and Amasa Walker, (the
former being a State Director) as a Committee, with instructions to make
a (all examination into the mode of performance of all the duties of the
Agent and Engineers, the nature and extent of those duties, the mode of
doing business and keeping accounts in the offices, the titles procured for
the track of the Road, and the prices paid ; and, in general, to make a
thorough inspection of all the business and affairs of the Corporation, con-
nected with the location and construction of the Eoad.

This Conunittee spent several days in the examinations, passing leis-
urely over the whole line of the Boad, and making inspections and «nquir-
6*

44 HISTORIOU, MEMOIR OF

ies at all the offices. Their Eeport was submitted to the Board July 24,
1838.* They specify in detail the proceedings of the Engineers and
their Assistants, from the trial surveys to the final location and the letting
and construction and the supervision of the work, including masonry.
They specify particularly the duties of the Agent and his Assistant, and
close by saying they " are fully satisfied that there is business enough in
each of the departments to engross the whole time of the several officers
employed, and in the agent's department at times extra labor is indispen-
sable." " Nor are the Committee aware, from any thing they could dis-
cover or learn from others that any of these officers are neglectful of their
duties." " They can congratulate the Board and Corporation upon their
good fortune in selecting wise, judicious and faithful officers in all the de-
partments of their business."t

At the close of the year 1838, the effects of the revulsion and panic of
1837 still existed in the prostration of business and the bankruptcy of
large numbers of business men. These disasters had fallen heavily upon
the stockholders of the "Western Road.j: In the faith that the grant of
State scrip for seventy per cent, of the capital would relieve them from
further assessments, they had paid the whole of the six assessments —
$600,000 — upon the private stock, with the exception of small fractions
of the later ones. It was by the friends of the lload deemed impractica-
ble to make further collections upon the stock at that time.

The Company had a large force in the field, on almost every part of
the line. The work was being urged on as rapidly as was consistent with
proper economy, and contracts for materials and equipment were out-
standing to a large amount. These, and the state of the work generally
afforded data for more reliable estimates for the entire construction and
equipment of the Road in Massachusetts.

The agent therefore prepared, and submitted to the Board, on Decem-
ber 11th, 1838, detailed and elaborate " statements of ihe, finances of the
Company, embracing estimates for the completion of the whole work in
Massachusetts ; an account of the past expenditures and present resources
and the amount necessary for the future." To this object the Resident
Engineer, at his request, " furnished the agent with a detailed report of
the items, so far as they were within the control of his department," and
the Treasurer provided an abstract from his books. From all which, and
the data within the province of the agent, a Report on the Finances was

* It is printed with the Annual Eeport to the stockholders, February, 1839.

f These extracts are not deemed irrelevant, in view of severe and tedious investi-
gations of two large Committees in the winter of 1839-40.

X The address by the Corporation to the pubUc in December 1838, represented, that
those Stockholders bad, in three years lost $20,000,000.

THE WESTERN RAILROAD. 45

submitted, containing some thirty-six pages. From this the following
results were given : —

1. East of the Connecticut River, about fifty-four miles, the Resident
Engineer estimated the

Graduation, masonry, bridges and engineering, at $1,117,569 93

Superstructure, - - - - 496,318 37

Engines and cars, -* - - 87,15000

Buildings, &c., at stations, . . - 38,125 00

$1,739,163 30
The agent added : —
For miscellaneous expenses, - - $34,652 72

For land damages, fencing, and depot lands, 90,913 10

$125,565 82

Total cost east of the river, - - $1,864,729 12

2. West of the river, —
Graduation, masonry, bridges, and engineering, (the latter
item to December, 1840, only,) superstruction, engines,
cars, and buildings, - - - $2,213,493 47

Added as before, —
For miscellaneous expenses, - - $28,497 12

Land damages, fencing, and depot lands, 84,452 02

112,949 14

Total west of river, (in Massachusetts), $2,326,442 61

Total cost 116 6-10 mOes, - - - $4,191,171 73

The funds provided were, — six assessments at $5 each, on
30,000 shares, and interest, less probable
loss, - - - - $910,643 30

Proceeds of State scrip, if sold at par, 2,100,000 00

$3,010,643 30

Balance, — deficiency to be provided for, $1,180,528 43

These details are given, because on subsequent occasions they were the
subject of much criticism by Legislative Committees and others, when it
was ascertained that further means were required, beyond the above
deficiency.

In view of these estimates, it was apparent to the friends of the Road
that further means to the extent of twelve or fifteen hundred thousand
dollars must be provided the coming year. A meeting of the stockholders
was therefore called, and holden at Boston, on the 12th of December, 1838,
at which, ailer full discussion and consultation, it was ordered, that the
Directors be required to apply to the Legislature for an additional loan of

46 HISTORICAL MEMOIIl OF

t^ie credit of the State, by a scrip for $1,500,000. A Committee of forty-
seven stockholders was appointed to aid the Directors in the application,,
and an address to the people, prepared by Mr, P. P. F. Degrand, was pre-
sented, read, and ordered published with the proceedings of the meeting,
and widely distributed.

The Petition was presented in the House of Representatives January
22, 1839, by William Lincoln, Esq., of 'Worcester, and at first referred
to the Standing Committee on Railways and Canals. But the Senate pro-
posed a Special Joint Committee, and the House concurred, and appointed
one from each Congressional District, with Mr. Lincoln as Chairman, on
the part of the House, which was joined by the Senate.*

After a very full hearing of several days, in which the officers of the
Company were examined in relation to the estimates and condition of
the work, Mr. Lincoln, from the Committee, on the 27th of February,
1839, made an elaborate and able report, accompanied by a bill for a
grant of State scrip, to the amount of $1,200,000.

The report, after briefly reciting the history of the Boad thus far, and,
particularly the proceedings, and the progress since the prior grant,
alludes to the necessity of more funds to complete the work, and adds,
" if the twenty-two hundred holders of the stock were wealthy capitalists,
the funds they have become bound to furnish, might be provided to enable
the Corporation to complete the Eoad." " Unfortunately the calan^ities
pressing upon aU, visited most severely on men of moderate estate, have ex-
hausted their ability to bestow charities upon the public." " And the at-
tempt to collect any considerable amount from the private stockholders^
would be entirely unavailing." " If enforced by the vigorous process of
law, it would bring severe suffering on worthy citizens." " Minute and
particular estimates of the sums necessary to complete the whole Boad for
the locomotives, have been made by the Engineers, and carefully revised
by the Directors.'' "By the largest estimate, the whole amount necessary
to finish every part of the work," " cannot exceed fifteen hundred thousand
dollars." " It was ascertained that a portion of this, could, by sufficient
exertions, be derived from the stockholders, by Jevying new assessments."
" With such deductions, it was assumed that the real necessities of the
Corporation might be effectually relieved, by obtaining a loan of one mil-
lion two hundred thousand dollars." The reported bill therefore required
the laying and collection of the seventh and eighth assessments of five
dollars each, and. that four of the nine Directors should be chosen
by the Legislature by joint ballot. In the House there were attempts

* While the hearing was in progress before this Committee, Mr. Samuel C. Allen, of
Norflifleld, (now of Boston,) moved in the House, that the State purchase wd control ,
the Koad. , But this motion was negatived.

THE! WESTERN RAILROAD. 47

at various vital amendments;, but the bill was passed to be. engrossed, hj
yeas 244, nays 172, much in the form in which, it was reported, and it had
its final passage by the Governor'?, approval, March 23, J 839.

During the year 1839, the, work eastward of Connecticut River was
carried on vigorously ; and the road was so far completed, that the regular
passenger trains commenced running: through, between Worcester and
Springfield, October 1, 1839, and the merchandise trains on the 23d of the
same month. The distance was 54 -ftVr miles.

Westward of the river, the residue of the line was put under contract,
the work was carried on with great energy ; and the n^aterials for the
Springfield bridge were procured. The work through the gorge of the
mountains, and especially that of the summit section^ in Washington, was
known to be very difficult and expensive,; — the rock cuts and heavy stone
bridges requiring a long time for their completion. But all was so far ad-
vanced that, in January, 1840, the Directors represented, that they believed
the funds provided were sufficient to finish and equip the whole Boad (ia,
Massachusetts.)

Yet at, that .date, another year had passed without any atteupipt by this
Albany Company to put their Road under contract ; , and there was no
prospect of the commencement of the work by that Company. Their act
of incorporation limited the duration of the charter to fifty years ; six of
whicb had expired.* ,It was apparent that inadequate estimates hacl been
made, in 1836-7, for the cost of that Road. And, although the Legisla-
ture had given authority to the city of Albany to borrow $650,000 for the
purposes of the Road, with the assent of the electors, and that assent had
been given, yet the subscription had not been made, except to $250,000
of stock. To the ofijcers of the, Westei-n Company, a jpint occupancy of
the Hudson and Berkshire Road east .pf Chatham, by :tlie two Companies,
seemed inadmissible, not only on account of the em^jcrassjo^ept it would
create to operate, in that way, the great. thoroughfare between (Boston
and Albany- and the far West, but on account of the high grades, and ex-
cessive, curvature,- and the flat rail, of ihe Hudson. Road,. .The Albany
Directors and friends of the, Alb?.ny Road were desirous of having the
Oity build Jhe Road. But, upon numerous yisit§ of the agent of the West-
ern Cfittipany to that city, it was feared the consent of the electors cpul4
not be obtained farther than already had.f

* This was extended to fifty years from April 13, 1840.

fWhen, in January, 1839,. application was made to the legislature of New York
for authority to make the loan of $650,000, a number of respectable citizens of Albany
remonstrated against it, on the ground, among others, as working an injury to the New
York and' Albany Railroad, by diverting "the western trade from our commercial me-
tropolis to Boston." (Appendix N.)

48 HISTORICAL MEMOIR OF

The Directors of the Albany Company proposed to lay their Road with
a flat rail only, in case they constructed it. There was also danger, even
if the road was made in a substantial manner, that it might, in process of
time, fall unde* the control of parties more partial to a free intercourse
between Albany and New York, than between Albany and Boston, and
that rates of fare might be established injurious to the trade with Boston.
It was well known that, about that time, an excitement was caiised in the
City of New York at the prospect of the early completion of the Road
to Boston. All these considerations led to serious apprehension of the
friends of the Western Road, that the object they had so long contended
for, might partially, at least, be defeated.

In the meantime, on the 12th of February, 1840, at a meeting of stock-
holders, a large Committee was appointed, " to investigate the affairs of
the Corporation, and make any suggestions which they might deem use-
ful." Their report, at a meeting, March 12, 1840, after giving the results
of their investigation, which will be noticed hereafter ; spoke of the vast
importance to the "Western Company, of extending the Road to Albany,
without loss of time ; of the interest which that City had in the work ;
and that it must only be necessary to bring the enterprise before her citi-
zens, to secure its accomplishment. They, therefore, recommended that
"a body of delegates be appointed by the shareholders, to proceed to
Albany and Troy, as soon as may be, to advocate the speedy construction
of that branch of the Railroad." The delegates appointed were, E. H.
Derby, George Bliss, A. Walker, P. P. F. Degrand, J. Henshaw, A. T.
Lowe, E. H. Robbins, Lemuel Pomeroy, and Charles Stearns. A ma-
jority of the delegates lost no time in proceeding to Albany.

The friends of the Western Company were desirous of making arrange-
ments by which the Albany Road should be constructed, controlled, and
operated, by officers of the Western Company, under the Albany charter.
But fearing that the people of Albany might be jealous of placing so much
power in the hands of a foreign Coi-poration, it was deemed prudent not
at once to broach that subject ; nor until the people of Albany had been
urged to undertake the work, and had shown a disinclination to do so.

Before the arrival of the delegates, notices were given for a large
meeting of citizens at the State Capital, on March 18, 1840. At that
meeting Jared L. Rathbone, the Mayor of the city, presided. Samuel
Stevens, Esq., an eminent counsellor, introduced the Massachusetts dele-
gation in a short and appropriate speech, when the meeting was addressed
at large by Messrs. Bliss, Derby, Degrand and Walker,* after which S.

* The proceedings are given in full in tlie Albany Argus of March 23, 1840, where
the remarks are reported.

THE WESTERN RAILROAD. 49

Dewitt Eloodgood introduced Kesolutions, first, ■welcoming the Delega-
tion ; second, affirming that the steady progress and unrivaled character
of the Railroad constructing by the Western Company, in order to reach
the line of New York, was a -guaranty of the skill and fidelity with which
that Company had conducted its* operations ; third, affirming the duty of
the citizens of Albany to hasten the completion of the Albany and West
Stockbridge Railroad, and concluding with " Resolved, that in considera-
tion of the expression of the public voice through the ballot box, under
the sanction of a law," — " we feel it to be our duty to proceed forthwith
in aiding the construction of the Albany and West Stockbridge Railroad,
and we call upon our Common Council to act promptly and efficiently in
carrying out the law and the will of the people, fairly and almost unani-
mously expressed in its favor." " Resolved, that we pledge ourselves to
give the project our hearty and liberal support." These resolutions were
adopted with great unanimity.

At a subsequent meeting of the Delegates with the Directors of the
Albany Company, some of the latter suggested that the Western Com-
pany should cgnstruct and manage and operate the Road, the funds to be
provided by the City ; and they asked for a proposition, with a plan of
operations in writing. This was assented to; and informal propositions
were made, and a preliminary argument was drawn up and submitted to
the Common Council of Albany, and to the Directors of the Albany Com-
pany, on the 20th of April, 1840, both of which bodies approved of the
same, and appointed a Committee with power to settle the details of a
permanent agreement, and have the same executed and the bonds of the .
city issued in conformity with the agreement.

This contract was perfected April 23, 1840, and duly executed in three
parts by the city and two Railroad Companies.

1. The city agreed to subscribe $650,000 to the stock of the Albany
Company, or take a transfer of that already subscribed by individuals, and
pay for the same in city scrip or bonds at thirty years, with six per cent,
interest, principal and interest payable in Boston.

2. The Albany Railroad Company agreed to entrust to the Western
Company the location and construction of their Road, with necessary
powers-^that they would preserve the legal organization of the Company^
(with provisions in case the Hudson Railroad was hired or purchased,) —
would give the Western Company exclusive control, with all rights of
transportation, &c., and would, on request, make a permanent contract of
transportation with the Western Company.

3. The Western Company agreed to proceed to construct the Road,
and open it for use, as soon as convenient, and provide and run the same
for the accommodation of the public, and faithfully apply all monies re-

7

50 HISTOEIOAL MEMOIE OF

ceived from the scrip, to the construction, except a sum sufficient to pay
one years' interest on the bonds, and ten per cent, of the principal to be
paid to the Sinking Fund, the bonds not to be applied to the pur-
chase of the Hudson and Berkshire Eoad, till the Road from Albany to
the junction was completed. That, as a rent or compensation for the use
of the Eoad, they would punctually pay the interest on the bonds. That
the Chamberlain of Albany, for the time being, and such person as should
be named by the "Western Company, should be Trustees of the Sinking
Fund. The Western Company to pay to said Trustees, ten per cent, on
the amount of the bonds as received, and annually after the Albany Eoad
was opened for use, one per cent, on the bonds issued, the same to be
put at interest, and the interest, and profit accruing, to be invested in
bonds and mortgages on real estate in Albany, or in stocks of the States
of New York or Massachusetts, the whole to be a Sinking Fund for the
redemption of the scrip. Any surplus to be paid to the Western Com-
pany. The Western Company to have a right to purchase and surrender
any part of the bonds, and receive a pro rata proportion of the shares of
stock, the one per cent, to the Sinking Fund to be reduced at the same
rate. If the Western Company neglected to pay the interest on the bonds
as due, the city, or the Albany Company might take possession and use
the Eoad until arrears were paid.

Then follows a provision in case the New York and Albany Eailroad
should be made, and unite with the Albany and West Stockbridge Eail-
road. The Western Company agree not to run their engines north of the
village of Greenbush, or the city of Albany, and to pay the expenses
then previously incurred by the Albany Company, for surveys, &c. The
city agreed to consent to the construction of one or more depots within
the city of Albany, as authorized by the New York act of Legislature of
April 13th, 1840.* The road was to be mortgaged to the city as security
for the payment of the bonds, or scrip, the city having the additional securi-
ty of the $650,000 of stock of the Albany Company, and the obligation, of
the Western Company to pay interest and principal of the scrip.f Dor-

* This act not only allowed the Albany (or Western) Company to establish one or
more depots in the city, but to connect the same by tracks,- and to connect the Green-
bush depot with them, by the assent of the city; the navigation of the river not to be
obstructed. That assent was given August 3, 1840. The same act extended tha
privileges of the Albany Company, to fifty years from its date.

fA copy of this tripartite preliminary agreement of April 23, 1840, is annexed to a
Report of a Legislative Committee of Massachusetts of February 18, 1841, Senate
Document No. .35, of 1841. The permanent contract of transportation, provided for
by the preliminary agreement, to be made between the 'Western and Albany Compa-
nies, bears date November 18, 1841, and is annexed to the sixth Annual Report of the
■Western Company to the Legislature of Massachusetts of January T, 1842. These

THE "WESTERIT RAILROAD. 51

ing the excursion of the delegates to Albany, two of their number,
Messrs. Degrand and Bliss, visited Hudson, and made a satisfactory con-
tract with the Hudson and Berkshire Rail Road Company, for the use of
part of their road for two years from the opening of the Albany road to
the junction at Chatham Four Corners ; with the right, within that time,
to the Western Company, to make a permanent contract of transporta-
tion with the Hudson Company, for the joint use of the Hudson road east
of Chatham Four Corners, during the continuance of the charter of the
Hudson Company, or any renewal thereof, (for a consideration then
specified.) The Albany Company having subsequently constructed their
own independent road, this last named contract was not made.

The delegation to Albany made a report of their proceedings at Al-
bany and Hudson, at a special meeting of Stockholders of the West-
ern Company, holden May 12, 1840, when the report was accepted, and
ordered to be printed for distribution, and it was

"Resolved unanimously, that we highly approve of the proceedings of
the Committee delegated to the State of New York, to form contracts of
transportation, ensuring the conveyance of passengers and freight, be-
tween the Western Rail Road and the Hudson River, and that the con-
tracts made with the city of Albany, the Albany and West Stockbridge
Rail Road Company, and the Hudson and Berkshire RaU Road Company,
be approved and ratified."

Immediately upon closing and executing the preliminary agreement of
April 23d, 1840, the Western Company entered upon the examination
and survey of various routes for the Albany Road, by the appointment of
John Childe as Resident Engineer and George W. Whistler as Consult-
ing Engineer. The surveys and examinations resulted in confining at-
tention to two general routes — the one by Groat's (Chatham Four Cor-
ners), the other by New Lebanon. The direct route from Albany to
Groat's, at the Junction of the Hudson and Berkshire Road, was pre-
ferred, and from that point the alternative was presented, first, of making
an entirely new Road to the line of the State, or one principally inde^
pendent of the Hudson and Berkshire Road ; or, second, of using the
latter in whole or in part, and laying down a second track upon it. While
this point was undecided, the Road from Albany to Groat's was definitely
located (as now used), and put under contract, and the work vigorously
prosecuted.

The Engineers were instructed to make a minute examination and sur-

contracts form the basis of the arrangements, \>j which the organization of the Alba-
ny Company is kept up, and under which the 'Westem Rail Road ia practicdUy exten-
ded to Albany, and the Westem Company has absolute control of the line in New
York.

52 HISTORICAL MEMOIR OF

vey of that part of the Hudson and Berkshire Road between Groat's and
the State line. They reported that it was wholly incompetent for the
business destined for the Western and Albany Eoads, and would not
sustain the engines necessary for the beneficial use of the united Eoads ;
and that it had grades of seventy-one to eighty feet per mile for four
miles. They therefore recommended an independent Boad for the whole
distance, involving a tunnel at Canaan of six hundred feet. The distance
as reported by the Engineers, was, from Albany 38 jWii miles to the State
line. Estimated cost of construction, $1,412,804. The maximum grades
40 to 44 i^ for nine miles. The equipment was of course to be pro-
vided by the "Western Company. This report was accepted and the line
approved by the Directors. As before mentioned, the joint use of the
Hudson and Berkshire Boad had been previously secured.

But upon a part of the route, the course of the latter Boad, through the
only vaUey to be occupied by the new line, was so sinuous, that it became
necessary occasionally to occupy a part of the bed of that Boad for the
location of the independent line, and to remove a part of the superstruc-
ture of the Hudson Boad to a new location — in some cases upon other
land of the Hudson Company, and in others upon new lands, to be ob-
tained by the Albany (or "Western) Company. For this purpose, after
much negotiation, an indenture was entered into between the two Com-
panies, under date of March 26, 1841, by which the Hudson Company
granted to the Albany Company the right to locate, construct and use parts
of their independent line, between Groat's and the State line, upon or
along side of the Boad and tracks of the Hudson Company, using the land
of the latter Company therefor, with the right, if necessary, to remove the
track of the Hudson Company and lay it upon other land to be purchased
by the Albany Company, with formal covenants for mutual releases of the
lands so exchanged; the Albany Company to pay the Hudson Company
$42,000 for these privileges. In pursuance of this contract, the track of the
Hudson Boad was in several places altered to land purchased therefor, or
taken by appraisal by the Albany Compan y, and the line of the Albany Boad
located and constructed upon the old Bpad bed. "When the Albany Boad
was thus completed, the Engineer made a full and minute survey of these
several changes, and a mutual indenture or release was drawn up accord-
ing to the covenants of the parties, and presented to the Hudson Comr
pany for execution. That Company refused to execute the instrument,
upon various pretenses, and it was never perfected. No serious injury to
the Albany Company was then anticipated, because the contract and cov-
enant of the Hudson Company to convey, was deemed a title to be vested
in the Albany Company by the decree of a Court of Chancery, so far as
the Hudson Company was concerned. But it appeared that the Hudson

THE -WESTEEN EAILROAD. 53

Boad had been previously mortgaged to the State of New York for a loan
of $250,000 which the Company were unable to pay, and the interest had
been long in arrears, and the State, some years afterwards, proposed to sell
the Road for the forfeiture, including ttose parts of the Boad taken for the
track of the Albany Company. When the original arrangement was made
for the changes of track and location, no suspicion or fear was entertained that
the Hudson Company would not give the releases, or that that Company
could ever forfeit their Boad for so small a mortgage debt ; and that incum-
brance was not adverted to. The difficulty was subsequently arranged by
a sale by the State, and a purchase of the entire Boad and franchises by
parties acting for the Western Boad. Under this purchase a new Com-
pany was organized, under the general railroad law of New York, and
the Boad between Chatham and Hudson has been since owned and oper-
ated by the Western (or Albany) Company under the name of the Hud-
son and Boston Bailroad Company.

But in consequence of the agreement of the Western Company to con-
struct and put in operation the whole of the Albany Boad, and their de-
termination to make the eastern section of it upon an independent line, a
financial exigency arose of no small magnitude.

The means provided by the city of Albany were bonds, to the
amount of $650,000, less ten per cent, by agreement to be paid into a
sinking fund, leaving $585,000. This had. been provided by the Albany
Directors, in view of laying a flat-strap rail, between Albany and Groat's,
and of the joint use of the Hudson and Berkshire road, to the State
line, on which also there was a flat rail. The Massachusetts grants were
not intended to cover any part of the Boad in New York ; and, indeed,
were all needed in Massachusetts. The Engineers had estimated the
expense necessary for the Albany Boad at $1,412,804.

The Agent of the Western Company represented this condition of
affairs to the Directors of the Albany Company, and, through them, to
the Common Council of Albany. The latter body promptly resolved to
apply to the Legislature for authority to subscribe a further sum of $350,-
000 to the stock of the Albany Company, and to issue bonds or scrip
therefor. Such authority was given. May 26, 1841, and, at the same time,
was given power to increase the capital of the Albany Company to $1,150,-
000. This additional subscription was made in August, 1841. For se-
curity of this, a new mortgage was made, and new contracts entered into
of similar tenor with those for the former subscription. The whole issue
of bonds of the city was $1,000,000, less ten per cent, to the sinking fund,
$100,000, leaving $900,000 for the construction of a Boad estimated to
cost $1,412,804. The deficiency was to be supplied by the Western
Company.

54 HISTORICAL MEMOIR OF

Among the embarrassments attending the operations of the Western
Company was an attempt, about this time, to involve their financial condi-
tion in the vortex of party politics. The grant of the credit of the State,
with a mortgage of the Boad as collateral security, was obnoxious to the
Democratic party; and at their annual State Convention, in October,
1839, the following resolution was adopted : " Resolved, that we protest
against the system adopted by our Whig Legislature, of loaning the credit
of the State to Corporations, under such circumstances, that the profits, if
any, will enure to the corporators, and the losses, if any, fall solely on the
State." This was followed by electioneering lectures, in various parts of
the State, for a year or two, endeavoring to prove to the people, that every
farm in the State had a mortgage upon it, on account of the Western Bail-
road ; and by one party, in Worcester county, the figures were given to
show that the mortgage was $72 per acre.

Preparatory to the opening of the road to Springfield, the Directors ap-
pointed a Committee to report on the subject of fares. The Boston and
Worcester road had been opened about four years, and several of the
Western Directors thought their charges were too high. On the first open-
ing of the Worcester road, the passenger fare was $1.50, subsequently
raised to $2.00, and again reduced to $1.50. The Committee of the
Western was instructed to confer with the ofi&cers of the Worcester, and
establish a reduced rate upon the joint business. This resulted in fixing
the passenger fare through between Boston and Springfield at $3,75 ; to
the Western $2.50, to the Worcester $1.25. This was continued only six
months, to April 1, 1840. The Western Directors were divided in opin-
ion ; a part for extreme low fares, and others for moderate ones. In the
Spring of 1840 the majority of the Western Directors insisted upon a re-
duction to $3.00. The Worcester refused to go below $1.25 for their
road, and the Western made the whole reduction, taking $1.75 of the $3.
This continued nearly four years, as between Boston and Springfield.
When the road was opened through to Albany, the contest between the
low fare party and their opponents was continued, both in the Board and
outside. Soon the question of fares became a controlling one, in the
elections of the Western Directors : and for one or two years, great efibrts
were made, and the number of stockholders made it almost a popular elec-
tion.

We have before stated that at the annual meeting on February 12, 1840,
a Committee of thirteen was appointed " to examine the treasurer's ac-
counts, to investigate the afiairs of the Corporation and make any sugges-
tions which they might deem useful"

Mr. Stephen Fairbanks was chairman of that Committee. They made
their report on March 12, 1840, having spent the greater part of the in-

THE WKSTEEN RAILROAD. 55

tervening month in their investigations, in the examination of testimony,
and in the hearing of officers, whose conduct was arraigned before them.
The officers of the Company attended these in the morning, and in the
afternoon, they were before a Legislative Committee. The stockholder's
Committee say that they made " the most rigid investigation of the servi-
ces performed by, and the salaries paid to the president, treasurer, gen-
eral agent, clerk and sub-agents of the Corporation." In carrying for-
ward this searching examination, the conduct of the officers, and particu-
larly of the general agent, as a prominent executive officer, for the
period of four years, was frequently the subject of inquiry and comment,
and after a severe trial of those officers, the Committee express an entire
approval of the manner in which all the officers had attended to the duties
of their offices;" — and they add that they "are unanimously of the
opinion, that the system early adopted by the Directors for the construc-
tion of the road, was a judifcious one, and well adapted to secure the use-
fulness and durability of the work, united to great economy in its con-
struction." The report was printed in thirty-two pages, with twenty-four
of appendix.

The Committee give the greater part of it to the subject of fares »
and they append to it sundry articles on that subject, from the Bos-
ton Atlas, by Mr. E. H. Derby, by whom this part of the report was
drawn up. It is ari argument in favor oihw fares. The Committee say
that four-fifths of the traffic of the Connecticut valley is with the city of
New York. Merchandise at $3.25 to $4.25. Passengers $3 by water ;
that the then average charge between Boston and Springfield was, for
merchandise $6 per ton, and $3.75 for passengers, and that the business
cannot be brought back to Boston with this disparity. They recommend
$2.50 for passengers, and $3.75 for merchandise ;* and between Worcester
and Springfield $1.50 for passengers ; and that the Directors take meas-
ures to induce the Boston and Worcester Directors, to put the entire
charge between Boston and Springfield, for passengers at $2.50, and the
average for rberchandise at $3.75 per ton ; and when the road should be
opened to Albany, the Committee think, " that the rate of passage from
Boston to Albany, may be safely fixed at $3, and flour at fifty cents a
barrel." The report was accepted. From this time forward, the tarifis
for passengers and .merchandise were a fruitful theme for discussion,
both in the Board and out of it, for several years.

A table of the charges for passengers, from 1839 to 1846, while these
differences existed, with the divisions between the two companies, is in
the Appendix, marked G 2. .

* The Committee instance the receipts of a Belgium Railroad in 1838, and say,
" the population along the line from Boston to Albany " " will soon be nearly as dense
as the population of Belgium."

56 HISTORICAL MEMOIR OF

The Directors in acting upon the report, voted, by six to three, to
reduce passengers between Worcester and Springfield, from %2 to $1.50.

At the meeting of the Legislature, in January, 1840, Gov. Morton,
in his message, alluded to the obligations of the State, as follows : " The
State, by its responsibility for several Railroad Corporations, has acquired
such an interest in their success, as will justify an investigation of their
affairs, to ascertain whether a due regard to the interests of the State,
and to economy, has been observed in the number of officers and agents
employed, — in the compensation paid to them, and in the manner of mak-
ing assessments upon the capital stock ;" and on January 28, 1840, a
special joint Committee was appointed on the subject, with Mr. Sprague
Chairman, of the Senate, and Allen of Worcester, Chairman, of the
House. While the " searching examination" and trial by the Stockhold-
er's Committee of thirteen, were proceeding for four weeks, the officers of
the Company were called to attend upon the Legislative Committee, upon
the same interesting business.*

No sooner was this Committee appointed, than there followed, in the
Senate, some eight orders for inquiry by them into specified proceedings
and acts of the Directors, Agent and Engineers, intimating extravagance,
in printing, — in the employment of counsel before the Legislature, — ^in
purchasing timber lands by the agent, — ^locating depots on land pur-
chased from officers, or the agent, — absence of the latter for several
months from the duties of his office; and requiring returns of salaries
paid and lists of salaried officers, and thus placing the officers on trial for
the transactions of the prior four years. (See Appendix — F.)

The hearing before this Committee took the form of a regular trials and
continued some five weeks with intervals, and with eight or ten long ses-
sions of the Committee. Mr. Henry Sterns of Springfield, and Mr. Ed-
ward Dwight of Boston, appeared and took seats at the table, and acted
as complainants, calling and examining witnesses ; and at one time the
latter proposed employing counsel to aid him. The agent of the Com-
pany, Mi. Bliss, appeared in behalf of the Directors, agent and other
officers.

Mr. Dwight, as one of the first Board of Directors, gave a history of
the organization of the Company, the appointment of officers, his views
of salaries ; and that they were fixed too high, — maintaining that a ma-
jority of Directors should be chosen by the Legislature, &c. ; and he fur-
ther stated, that in fixing the location at Springfield, the agent wanted it
near his own land'.

Mr. H. Sterns presented in writing, sixteen subjects for enquiry by the

* See House Document No. 62, 1840.

THE WESTERN EAILROAD. 57

Committee, in relation to salaries, duties, and services of the agent, en-
gineers, and sub-agents, and the time employed ; the rate and amount of
compensation for the purchase of iron rails ; the purchase of land on his
own account, or by the agent, on the line of the Road, and his eflPorts to
procure the location of depots thereon, &c Mr. Sterns also submitted four-
teen interrogatories to be put to Mr. Amasa Walker, one of the Directors,
and to be answered in writing.

Mr. S. C Allen, of Northfield, wished the Committee to take hold of
the original books and examine the original entries. He had heard that
the agent voted in favor of raising his own salary, &c.

Mr. Stems occupied one whole sitting in various complaints against the
proceedings of the Directors and agent ; among others, that the' Directors
should not be salaried men ; that a Chief Engineer was unnecessary, and
he was paid too much ; that he could find men fully competent to the
duties of agent, for half his salary. That the agent had land at Spring-
field, where he wanted the depot, and voted to locate it on his own land ;
that he ought to purchase the rails, instead of the President, and he closed
by submitting the answers of Mr. Walker to the fourteen questions pro-
posed to him.

Several witnesses were examined from time to time. Mr. F. Morgan,
was employed privately by the agent, and bought five lots of timber land.
Without them, it would have been difficult to purchase the timber at
double its cost. Major Whistler, Chief Engineer, was examined orially,
and put in a written statement, and he closed by saying, that he never was
before a Board of Directors, where he was required to give his reasons so
fully. Gentlemen from various localities on the Boad, were ofiered to.
show the economy of expenditure, and the shrewdness in bargains for
the land damages. But the Committee said this was not necessary.

Mr. Walker, in his answers, said, that from 1836 to 1839, he thought
the salaries too high. Committees on the subject reported in favor of
lower ones ; but reduction was opposed by a majority.* In 1839, himself,
and Messrs. Hudson and Pomeroy, were on the Committee, and they re-
ported in favor of increasing the Agent's and President's salaries each
$1,000. Himself was undecided, and would say the next day whether
he agreed^, but he was then absent.

Mr. Walker thought consulting Engineers were superfluous, and the gen-
eral system of construction was not judicious, and economical. That the
Engineers should be under the General Superintendent or Agent, wh©
should have the whole control and responsibility, — ^the Engineer to per-

* It was in consequence of these differences, that Mr. Hudson, and Mr. Walker were
appointed a Committee for thorough inspection, in 1838, and after ten days upon tha
line, their Report hefore mentioned, was made July 24, 1838.
8

58 HISTORICAL MEMOIR OF

form no duties not strictly professional. The building of Railroads was a
very simple affair. Common business men and mechanics are abundantly
able to carry on these works, requiring only skill in surveying and civil
engineering, — services which might be performed by active young men in
all our towns, at salaries of $500 or $600.

Mr. Walker thought the Western Railroad, would be built as cheap as
most others, and the whole work would be of the most perfect and dura-
ble character.

Mr. E. Dwight differed from Mr. Walker as to the system of construc-
tion and employment of Engineers, he assisted on the organization and
named every officer except the clerk, and was on the Committee which rec-
ommended the Engineers who were appointed. He was on the Committee
on importation of rails, and employed T. B. Wales & Co., at an agreed
compensation, one per cent, less than ordinary. Mr. Dwight thought the
State should have the control of the Corporation, to be managed with
economy.

On this point Mr. E. H. Derby said the Stockholders' Committee of In-
vestigation were unanimously opposed to the majority control by the
State. The stockholders owned two-thirds of the stock, and should have
a majority of Directors. The State was secured by mortgage, with
rights of possession, on failure to pay interest. If they controlled the Com-
pany, they might require, or allow, the forfeiture by non-payment of in-
terest on the scrip, and thus get possession of the road. He said that
the road was built with great skill, and a proper regard to economy,
and there was no reason to doubt the integrity of the officers and Di-
rectors.

Mr. William Lawrence agreed in this view. To this Mr. Dwight re-
plied, I did say, that I thought the State ought to have the control,
but not to encroach on the rights of the Stockholders. If the Corpora-
tion consent, the State should have a majority ; the State should interfere
on account of economy.

Mr. Charles Hudson gave the Committee information, obtained by
himself and Mr. Walker, on the Committee of 1838, after ten days ex-
aminations, and stated, on the subject of salaries, that he addressed let-
ters of enquiry to the Providence, Worcester and Lowell Railroad Com-
panies, and found that they paid at higher rates than the Western. To a
question by the Committee on the reduction of fares, Mr. William Jack-
son said, he judged by experience on the Worcester road. They commen-
ced at $1.50 for passengers, and did not get. enough for a dividend, they
raised to $2 and had enough for a dividend, — again reduced to $1.50, and
the income was reduced.

To the specific.orders for inquiry sent to the Committee by the Legisla-

THE WESTERN EAILROAD. 59

tnre, information was furnished by the officers of the Company, as fol-
lows:

1. The amount expended for printing in four years was $2,865,08 ;
for printing circulsirs to clergymen $23.83.

2. Payments to counsel to obtain aid from the State in three success-
ive grants, including their expenses 674.16.

3. Combinations to extort extravagant prices for timber lands and lum-
ber. (See Directors answer in Appendix G.)

The Company saved about $10,000 on the purchase.

4. Location of the Road or depots on land purchased of any officer or
agent of the Corporation. The Directors say there was no such instance.
On a tract of pine plain land, in which the agent and his assistant had
owned, for many years, a fractional interest, the whole tract worth not
over $50, they released free of charge, as did a former Director at Pitts-
field over a tract of pasture land.

5. As to the enquiry about the absence of officers from duty for
months, on other business. (For answer, see Appendix H.)

6. For a schedule of payments to officers and agents, and extra al-
lowances to salaried officers for four years. (See Appendix I.)

7. On the enquiry as to the number of salaried officers, holding the
office of Director, three were specified, — the President, Treasurer and
Agept.

8. On the subject of the charges of Mr. H. Stems, and Mr. E. Dwight,
against the Agent, for speculating in land for the location of the depot at
Springfield, the Agept submitted to the Committee a statement of facts.
(For an abstract of which, see Appendix J.)

On March 17, 1840, Mr. Charles Allen,* in behalf of the Committee,
submitted their Eeport,t setting forth, that the Committee had had many
meetings and devoted much time to the examination into the several mat-
ters, which they had been particularly directed to inquire into, and to the
general concerns of the Koad. That the Engineers, Directors, Agent
and other officers, and individuals acquainted with any of its concerns,
were before them, and personally examined.

Upon the seventh subject of inquiry, the Committee recommended that
the Treasurer and Agent should not be members of the Board, and, on
March 23, 1840, a law was passed prohibiting it, and thereupon the
Treasurer and Agent resigned their places on the Board.

The Committee, on the eighth subject of inquiry, were unanimously of
opinion, that it was not expedient to iQcrease the number of State Direc-

* See Appendiz K.

f House Documents 'So. 62, 1840.

60 HISTOEICAL MEMOIR OF

tors. Upon the ninth subject submitted to them, the Committee say that
" intimation having been made, that an officer of the Corporation had
purchased lands, in expectation that they would be needed for the Scad,
or that the location of a depot had been effected upon the land of such
officer, with the purpose of enhancing its value, your Committee have in-
vestigated the matter, and are happy to state, that no foundation exists
for the imputation, and that the conduct of the officer, in all the transac-
tions alluded to, has been fair and honorable."

On the subject of employing consulting engineers, the report says,
" that the impression early made on the minds of some of the Committee,
that the employment of consulting, in addition to the Resident Engineer,
was injudicious, has been removed by a careful examination of the man-
ner in which the Road has been constructed, and by further consideration
of the difficulty and importance of the; work, and the disastrous conse-
quences which might result from a single error."

" In respect to the construction of the Road, the general economy with
which it has been built, and faithfulness of all who have been employed
in its construction, the evidence is full and harmonious." " The contracts
have been made with good judgement, and on favorable terms, both in
procuring material, and in the performance of labor. The land damages
have been prudently adjusted, and the general concerns of the Corpora-
tion have been managed with care and vigilance." •

Thus terminated another of the series of general investigations, by
Committees, of Stockholders or of the Legislature ; during which, all
of the officers were subjected to severe ordeals, and |ome of them to seri-
ous impu'tations, from which they came out, not only merely unscathed,
but with the unanimous approval and commendation of the several large
,and respectable Committees.

During the year 1840, the operations of the Road were carried on suc-
-cessfully. The unfinished parts east of Connecticut River were completed,
requiring more work, and involving more expense than was contemplated
;at the time of the last estimates ; and the foundations of the piers, and the
.abutments of the river bridge were prepared.

Of the sixty-two and one-half miles west of the river, fifty-three miles
•were gi'aded ; the sails laid upon thirty-five miles ; the heavy sections in
(the mountain dis^ision were much advanced ; depot lands were procured ;
rights of way settled,— iron, timbei", engines, and cars were contracted
lor. Twenty-two miles of the Albany Road, — Greenbush to Chatham
Four Comers, — ^were put under contract, and the work upon the northerly
itwelve miles of it was in progress. The difficulty of procuring titles for
(the road-bed, (by the law of New York, a condition precedent to the
(trork,) delayed operations upon the residue of it.

THE WESTERN BAILEO AD. 61

It was clearly apparent, that the cost of the whole work would exceed
the estimates of the Report on the Finances, in December, 1838, and the
subsequent Eeport of the Engineers on the cost of the Albany Eoad.

As much dissatisfaction was expressed at this excess of cost over former
estimates, requiring additional funds beyond those provided by the Legis-
lature, it may be proper here briefly to make the comparison, and give the
reasons for the increase.

In December, 1838, the Eeports on Finances stated the cost of the
Road east of the river at, - - - $1,864,729 12

On making up the accounts, December, 1840, it was, 2,016,969 90

Excess unprovided for, - . - $152,240 78

West of the river, in Massachusetts, estimates of Decem-
ber, 1838, were - ' - - - $2,326,442 61

On January 1, 1840, the estimates, including the Connec-
ticut River bridge, and the interest account, were 3,218,056 78

Excess west of river, ... $891,614 17

Or, for the whole Road of 116-J, miles in Massachusetts, $1,043,854 95

The Engineers and Agent submitted to the Board the causes of this
increase, &c. The excess in graduation, masonry,, and bridging, was
caused, principally, by an increased quantity o{ yrork, hejond the esti-
mates, rather than an undervaluation of it, arising from changes found
necessary in its progress, and the necessity of hastening some of the
heaviest parts. Such was the nature of the work in the gofge of the
mountains, that it was utterly impossible to make a reliable estimate be-
forehand. For insta.nce, no doubt was entertained that the ledges on the
line would furnish materials for the masonry. But the stone was con-
demned as unfit ; and material was procured from a distance, over roads
almost impassible. As to the Connecticut River Bridge, the bed of the
river was ascertained by boring, to require more than ordinary expense
to procure foundations. The shortness of the season to get the masonry
above the water, increased this cost.

The increased earth excavations on the line were 834,935 yards; rock
129,536 yards ; perches of masonry, 55,800. This increase was caused,—

1. By necessity of hastening the work, and by wasting from the cuts,
and borrowing for embankments.

2. The freshets in 18S9 were so unexpected, as to require the road-
bed of the first twenty-eight miles west of the river, to be raised on an
average three feet. Other parts were also raised.

3. The grading was estimated for a single track, and over one-half the

62 HISTORICAL MEMOIR OF

Boad west of the river, (and the worst part,) was graded for a double
track.

4. The sinking of heavy embankments. It was ascertained, that a
long one in Bichmond settled some eighty to eighty-five feet below the
surface of the swamp.

The original estimate for the Engineer department was for expenses to
the close of 1840. . The present included 1841. The increase in engines
and cars was to meet increasing business. The increase in miscellaneous
expense was accounted for pi-incipally by including to June, 1842, instead
of 1841. The land damages were increased, by the necessity of buying
the franchises of the Pontoosuc Turnpike Company, through the gorge of
the mountains. The item of interest on borrowed moneys, now taken from
the Treasurer's books, no part of which was in the prior estimates, was
$196,587.10.

In addition to this increased cost of the Boad in Massachusetts, the
"Western Company had, in 1840, assumed to construct the Albany and
West Stockbridge Eailroad, and, as has been stated, (in anticipation,) it
was found indispensable to make an entire new Boad from Albany to
West Stockbridge, thirty-eight and one-half miles, instead of using a
part of the Hudson and Berkshire Boad. The estimates for this, upon
new surveys by the Engineers of the Western Company, were, January

1, 1841, $1,412,804 GO

The funds available for this were the scrip- or bonds of
the city of Albany, $1,000,000, less ten per cent,
to Sinking Fund, .... 900,000 00

Amount to be provided by the Western Company, $512,804 00

Add deficiency in Massachusetts, - - $1,043,854 00

$1,556,658 00

Or making the whole costs as estimated in January, 1840 :
East of the river, - - $2,016,969 90

West of the river, - 3,218,056 78— $5,235,026 68

Albany and West Stockbridge Boad above, 1,412,804 00

$6,647,830 68
The means providOT prior to December 31, 1840, were :
Two grants of scrip of the State of

Massachusetts, $2,100,000 and $1,200,000— $3,300,000 00

Net amount scrip of city of Albany - - 900,000 00

Eight assessments of $5 on $3,000,000 of stock, . 1,200,000 00.

$5,400,000 00

THE WESTERN RAILROAD. 63

Requiring about a million and a quarter additional funds to complete the
Road (as estimated January 1, 1841.)

It thus became necessary to apply to the Legislature for aid by a third
grant of scrip ; and at a special meeting of stockholders, January 27, 1841,
the Directors were required and enjoined to apply for a loan of scrip to
the amount of one million of dollars ; and a Committee of sixty-five was
named to act in aid of the Directors. Mr. Degrand* submitted a draft of
an address to the people of the State, which was adopted.

This petition for aid was presented in the House on February 4, 1841,
by Mr. Giles of Cambridge, and referred to the Committee on Railways
and Canals. The Senate non-concurred, and ordered a Special Joint
Committee, which was agreed to, and Messrs. Hubbard of Boston and
Lincoln of Hingham, of the Senate, and Giles of Cambridge, Stevenson
of Boston, Chamberlin of Dalton and Avery of Marblehead, of the House,
were appointed. Subsequently the Committee were instructed to ascer-
tain the number of stockholders, and the number of shares in hands of
original subscribers ; also to inquire into the propriety of the State Direc-
tors acting and voting in Corporation meetings ; also the expediency of
the State purchasing and completing the Road.

After a long hearing and a detailed argument by the Agent of the
Western Railroad, the Committee, through Mr. Hubbard, made a reportf
in the Senate, on February 24, 1841, with a bill for a grant of one mil-
lion of dollars. The reported bill required two additional assessments to
be laid ; that the State should elect five of the nine Directors, with pro-
vision for reduction to four and to three, on the payments of one and two
millions of the scrip severally ; and in other respects, it was substantially
like the prior grants.

The Report was much in detail. A part of the Committee spent three
days on the line of the Road, and at the offices. In reference to the esti-
mates, they say, it was originally impossible, from the nature of the
country, to make accurate ones. That they are satisfied they were made
in perfect good faith ; and they add their " strong fears, that, unless the
Legislature once more extend the strong arm of the Commonwealth to
help forward the work, it must stop." !

They report the whole number of stockholders to be 1949, and of these
1766 were original subscribers in 1835 ; and that of the 20,000 shares,
13,639 were in the hands of the original holders.^ That the great body
of the stockholders embarked from patriotic feelings, regarding the enter-

*See Appendix, K 2.

f Senate Documents No. 35, 1841.

J See Appendix 1, for details.

64 HISTORICAL MEMOIR OP

prise as an important public undertaking ; and if the Legislature now
abandon it, it cannot be expected that private individuals will have more
of public spirit, or greater confidence, than the civil fathers of the Com-
monwealth.

The Committee review the proceedings resulting in the contract with
the City of Albany, and the Albany and West Stockbridge Railroad Com-
pany, and say " they cannot doubt these contracts are highly advantageous
to the Western Bailroad ; that it is for the interest of the State that they
should be carried into execution.

The Committee reported adversely to the purchase and completion of
the Road by the State, also to the proposal to allow the State Directors to
be represented in the stockholders' meetings, on the ground that the State
chose a portion of the Directors, and it would not be reasonable that they
be represented by ten thousand shares in meetings for the choice of the
others.

This bUl was debated in the Senate on six several days. On motion of
Mr. Sprague of Plymouth, the amount of the grant was reduced to
$700,000 by vote of eleven to nine. A motion by Mr. Parsons to give
the State six Directors was negatived, when on motion of Mr. Parker the
whole clause respecting the number of Directors, was stricken out. The
motion by Mr. Whitniarsh to recommit, with instructions to report a bill,
authorizing the City of Boston to lend one million of her scrip, was re-
jected, and the bill was passed by a vote of nineteen to eight 'on March
9th, 1841.

In the House, a motion by Mr. Tarbell to restore the clause giving the
State five Directors was rejected by a large vote. But an amendment
requiring the Company to collect four assessments of five dollars each in-
stead of two was adopted, and the bill passed to a third reading March
12th, by a vote of one hundred and ninety-two to one hundred and forty-
four. The title, was altered to read, a bill to complete, &c., instead of to
aid the Western Bailroad. When the bill was returned to the Senate,
Mr. Washburn, of Worcester, made an argument against it, on the ground
that the stockholders, or the City of Boston, should provide the money.
He insisted that the Road must be finished, and the State could not afford
to have the work stop ; but he held, that as a consequence of the former
loans, the stockholders gave a pledge that they would furnish further
means if necessary.*

The means being thus provided for the entire completion of the work,
Mr. Bliss, on March 23d, 1841, gave notice to the President of his in-

* This bill was opposed in the Senate by Messrs. Hooper, WhitmarBh, Davis and
"Washburn; and in the House by Messrs. Tarbell, Allen, Kinnicutt and Hinckley.

THE WESTERN RAILROAD. 65

tention to resign the office of General Agent. But at the solicitation of
the Board, he consented to serve through the year.

The subject of the Sinking Funds required by these several grants by
the. Legislature of Massachusetts, and by the contracts with the City of
Albany, will be postponed, in order to present an account of their origin
and progress in one continued narrative.

During the year 184:1, the work between Connecticut River and the
line of the State was prosecuted successfully. Twenty-eight miles, to
Chester Factories, was opened for use on May 24th ; from the State line
to Pittsfield in May, and thence to the summit sections on August 9th ;
from Chester Factories to the summit sections September 17, and through
those sections October 4th. The Connecticut Biver bridge was finished
July 4th. Thus on October 4th, 1841, the whole Road from "Worcester
to the line of New York was completed for use.

The part of the Albany Road between Albany and the junction with
the Hudson and Berkshire RaUroad, at Chatham Four Corners, was so
far finished as to be opened for use on December 21, 1841, and under
the contract with the Hudson Company for the joint use of their Road
temporarily, the trains commenced running between Worcester and Al-
bany on that day.

The Hudson and Berkshire Road was laid with a flat bar, five-eighths of
an inch thick, on a longitudinal wooden rail, and, with its high grades, it was
in a state of dilapidation, as the engineers had reported. In the contract
with the Hudson and Berkshire Company, they required that only light en-
gines should be used upon it. In casting about for engines of sufficient
power for the heavy business of the Western Road, and yet safe to that
track, Major Whistler was unable to procure any in season for immediate
use, except two light six wheel engines (all drivers), made by Winans of
Baltimore, afterwards, in derision called " Crabs." These were put upon
the Hudson Road, and principally confined to use there, so long as the
Western Company used that Road. The relevancy of these facts will
appear in the sequel.

The opening of the Road from Boston to Albany was the signal for
cordial congratulations through the whole route from Albany to Buffalo,
as evinced in strong terms in their local papers. One of these, the Utica
Daily News, of January — , 1842,* was made the subject of a severe at-
tack upon the people of Albany, in the New York Standard of January
12, 1842, for their favor to the Boston Road, by a loan of the bonds of the
city, and, as alleged, for the exclusive influence of the press, exercised to
promote that enterprise, evincing hostility to the City of New York, and

* See Appendix M.

66 HISTORICAL MEMOIR OF

to the New York and Albany Railroad. •The remonstrance of certain
citizens of Albany against granting leave for the city to loan their bonds,
is recited by the Standard, as is the contract of April 20, 1840, between
the city, the Albany Company, and the Western Company, with severe
comments.

On January 10, 1842, the same N. Y. Standard made a violent attack
upon the Western Railroad Company, on account of an arrangement with
the Housatonic Railroad' Company, for a through line between Albany
and New York, via. the Housatonic Road. The Western at the same
time proposing a route via. ' Springfield and New Haven, on the same
terms. This was answered by the agent of the Western Company, in
the Albany Daily Advertiser, of January 18, 1842, in a statement, which
was entiirely satisfactory to the public.

* To commemorate so important an occasion, as the opening of the Rail-
road between Albany and Boston, the municipal authorities of Albany
invited the City Government of Boston to make a visit to Albany, to cel-
ebrate the auspicious event. The invitation was promptly accepted, and
the authorities of Boston, with gentlemen from that and other cities, num-
bering one hundred and twenty-fiVe,'left Boston, December 27, 1841, and
resting two and one-half hours at Springfield, reached the depot at Green-
bush, at seven and one-half, P. M., where they were received by the
authorities of Albany and others, and under escort of volunteer compa-
nies, conducted to lodgings. The next morning, the eastern delegations
were received at the City Hall, visited various places of interest, and
repaired to the room of the Common Council, then in session, where they
were formally welcomed in an address by Teunis Van Vechten, Esq., the
Mayor, which was responded to by Jonathan Chapman, Esq., Mayor of
Boston.

In the evening, dinner was served in Stanwix Hall, to about three hun-
dred guests, the Mayor presiding. He delivered a congratulatory address,
with a sentiment, to which Mr. Chapman responded. Addresses were
made by Messrs. Derby, Austin, Gov. Seward,t J. Quincy, Jr., Degrand,
Hale, R. King, and others.

The Boston delegation reciprocated the invitation to the authorities of
Albany and others, and about two hundred and fifty gentlemen took an
extra train for Boston, on the 29th, arriving there at seven and one-half
o'clock P. M. They were welcomed by a great concourse of people, and
the Albany authorities were quartered at the United States Hotel, as
guests of the city.

* See Appendix N.

f Governor Seward read a letter written in 1662, by the Governor of New Tork to
the Governor of Massachusetts, proposing the establishment of a monthly posUrider
between Boston and New Tork.

THE "WESTERN EAILROAD. 67

The next day they were conducted to visit the city institutions, and ob-
jects of interest in the vicinity, and at five and one-half o'clock, duiner
was served at the United States Hotel to the western gentlemen, and a
large party of citizens. Mr. Chapman, the Mayor of Boston presided,
and gave a sentiment complimentary to the Albanians and their city, to
which Mr. Maypr Van Vechten responded. Speeches were made by Gov-
ernor Davis, and by several New York and Massachusetts gentlemen.
On the 31st of December the western gentlemen returned to Albany.
In 1841, a diffprence arose between the Post Office Department and
the Company on the subject of compensation for transportation of the
mails, and a somewhat extended correspondence was had. The Worcester
Company and the Western, each made bids for the contracts at the same
rate per mile. , The Department offered the Worcester Company $188.80
per mile, between Boston and Worcester and to. the Western, $150,between
Worcester and Springfield, and $100 per mile between Springfield, and
Albany. The officers of the Western Company thought this an invidious
and unjust distinction and rejected the offer. After long correspondence,
and repeated requests tp the department to provide other means of trans-
portation, the Company gave notice that, after a future day named, they
should discontinue the service, and on January 25, 1842, did throw out
the mails ; at the same time offering to submit the question to arbitration.
This change caused serious inconvenience to the business community, and
the Legislature being in session, an order for inquiry by a committee was
passed. After notice, the Directors expressed their willingness to abide
by the, opinion of the Committee, as to compensation for the mail service.
Their decision was acquiesced in, and the mails were restored to the
cars.*

At the same session of 1842, the protecting care of the Legislature,
of the interests of the Western Bailroad Company, was exhibited in two
orders for enquiry.

1. That the Committee on Railways and Canals " examine the tariff
of prices and report thereon.f 2. To enquire into the causes of the fre-
quent accidents on the Western Bailroad.|

1. In answer to the first enquiry, the officers furnished, and the Com-
mittee reported, the printed tariffs of prices as established on the Eoad,
and ia daily use at all the stations, and distributed through the State.

2. On the subject of accidents, the Committee made a jjetailed re-
port, specifying four. One at West Brookfield, in 1840, one at Spring-

* Senate Document No. 41, 1842.
f Senate Document No, .31, 1842.
^ Senate Document No. 55, 1842.

68 HISTORICAL MEMOIR OF

field in December 1840, one at Chester in October 1841, and one at
Sichmond, in February 1842. (For particulars see Appendix O.)

A third order of the same Legislature, of February 12, 1842,* was
" That the State Directors, or President of the Western Bailroad, be re-
quested to report as soon as practicable : 1. The amount of compensation
and salary paid for two years past to each officer, agent or person, in the
employ of the Corporation. 2. The amount paid for extra service, or in
addition to regular compensation ; to whom paid, the nature of the service,
and the increase of salary, if any. 3. The charges and compensation of
State Directors. 4. The amount paid for damages from accidents. Do.
claimed and unliquidated."

The State Directors answered, that, (excluding contractors and day
laborers,) upon inquiry in the proper quarters, they are not aware that
any such payments were made for extra service, in addition to regular
compensation. They reported schedules containing lists of officers and
agents, with the compensation paid to each ; also a schedule of payments
to State Directors, amounting to $1,114.43; and a detailed list of sums
paid for losses by accidents, — damages to persons and property amounting
in two years to $8,700.21 ; and that, while negotiations were pending for
unliquidated claims, it was inexpedient to give a public statement of such.

Thus the legislative investigations were closed for this session of 1842.
They affisrded active employment for the executive officers of the Com-
pany during much of the winter.

The Boad being practically finished, and in successful operation from
Worcester to Albany in December, 1841, Thomas B. Wales, Esq., who
had been President of the Corporation from its organization in January,
1836, declined a reelection in February, 1842.

Mr. Wales, after twenty or thirty years of active business, as one of
" the most enterprising and successful merchants of Boston, distinguished
alike for his integrity and punctuality, as well in Europe as in this coun-
try," had retired from mercantile business ; and he was induced to accept
the presidency of this Corporation, from the purest motives of patriotism,
at a time when the promise of success was not flattering. He continued in
service, by successive elections, for six years, through gloomy and prosper-
ous times, with the entire confidence of the stockholders, and of the whole
community, and with an unfaltering belief in the final success of the en-
terprise, until he witnessed the consummation of all his hopes and labors,
in the passage of the trains between Boston and Albany.f

* Senate Document KTo. 69, 1842.

f During Mr. "Wales' presidency, active duties in the field or upon the line were not
required of that officer. These were devolved upon a general agent.

THE -WESTERN EAILROAD. 69

At the Stockholder's meeting, February 9, 1842, Mr. Bliss having
been re-elected to the Board, addressed a note to them, suspending
the question of his acceptance of the office of Director, as he held the
office of Agent, which was incompatible by law. At the organization of
the Board, John Howard, Esq., was chosen President pro tem. Subse-
quently, on February 28, Mr. Bliss resigned the office of agent, and hav-
ing accepted as a Director, was chosen President, March 1, 1842.

In March, 1842, the Directors invited the Executive Officers, and the
Legislatures of the States of New York and Massachusetts, to meet at
Springfield, and exchange congratulations, and reciprocate courtesies, on
the occasion of the new and permanent union of the two States, by Eail.
The invitations being accepted, the meeting was arranged for March 4th,
1842.

The Boston party arrived at Springfield at 12 J o'clock, the Alba-
ny at 1^ o'clock. Both were escorted to the Masonic Hall. Gov-
ernor Davis and Governor Seward were formally introduced by the
Hon. Josiah Quincy, Jr., President of the Massachusetts Senate, who
presided, when Governor Davis welcomed the delegation from New
York to the State of Massachusetts, in an appropriate address, to which
Governor Seward responded, in his usual felicitous manner. After
an hour spent in mutual introductions and social intercourse, the
joint party repaired to the Town Hall, where dinner was prepared.
President Quincy presiding, gave as a toast, " The Western Railroad
Corporation," — which was responded to by Mr. Bliss, the President of the
Company, who closed with a sentiment, to the State of New York. This
was responded to by Mr. Paige, Acting President of the New York
Senate, and speeches were made by Mr. Walley, Speaker of the House
of Representatives of Massachusetts, — Dr. Taylor, the Speaker of the
New York Assembly, and Gen. Root, the father of the New York
Senate, who gave " The happy union of the Sturgeon and the Codfish,
may their joyous nuptials efface the melancholy recollection of the de-
parture of the Connecticut river Salmon."

The returning trains delivered the parties, severally at Albany and
Boston on the same evening, without the slightest accident or interrup-
tion.

The independent Road of the Albany and West Stockbridge Railroad
Company, between Chatham Four Comers and the State Line, was finished
and opened for use, September 12, 1842. This enabled the Western Com-
pany to dispense with the further use of the Hudson and Berkshire Rail-
road. The permanent depot at Greenbush was finished during that year.
A communication was opened with the Albany shore, by means of an effi-
cient and commodious steam ferry-boat, and the business of the station

70 HISTOEICAL MEMOIR OF

was transferred to that point from the Greenbush village, where it hatj
previously been done.

The extended business of the Road required now large additions to the
depot accommodations, at almost every part of it, with a corresponding in-
crease of engines and cars. These involved an expense much beyond
any prior estimates, and affecting materially the finances of the Company.
For the estimates had not generally been made for much prospective in-
crease of business. The estimate in 1841 for rolling stock was $450,000,
and in January, 1843, it had been carried up to $642,547.04. By the
following comparison it will be seen how far the estimates of January,
1841, fell short of the actual expenditure up to January 1, 1843 :

On the Western Eoad the total estimate of

1841 was - - - $5,235,025 87

bo. amount paid and contracted for, Jan-
uary 1, 1843, - - - 5,692,007 62— $456,981 65

On the Albany Railroad, the estimate of

January 1, 1841, was - - $1,412,804 00

Do. amount paid and contracted for, Jan-
uary 1, 1843, - - - 1,706,929 28— $294,125 28

$751,106 93

And on January 1, 1843, there was further
estimated, for future additions on the
Western, - - - $122,800 00

Do. on the Albany, - - - 45,054 77— $167,854 77

Total paid, contracted fpr, and required, $918,961 70

The entire excess of cost of the Albany Road above the estimates, was
for additions and work not included in the original estimates.*

In the annual report of February, 1843, the Treasurer gave the total
nominal assets for construction, (supposing the whole capital of $3,000,000

to be realized,) as $7,702,097 91

Cost of both Roads as above, January 1, 1843, - 7,566,791 57

Leaving a surplus, subject to contingencies, - $136,306 34

In addition to the twelve assessments of $5 each laid prior to January

1, 1842, and principally required by the State grants, two assessments of

$10 each, and one of $20, were laid in, 1842, making the whole capital of

*0f this, $18,136.58 was for amount paid tup original stockholders of the Albany
Company, for expenses of surveys, &c., before the lease of the Boad to the Westem
Company, and'$103,600 was for enlarged accommodations at the Greenbush depot and
ferry.

THE WESTERN EAILEOAD. 71

$3,000,000, On December 31, 1842, there remained uncollected of the
$3,000,000 only $56,425. The Directors and Treasurer had hoped to
avoid the call of these three assessments ; or at least to postpone them to
a time, when the payments would be less onerous to the stockholders.
But the pressure of the times was such, and the discredit thrown upon
State scrip, by the repudiation of some States, and default in payment of
interest by others, was so great, that the Massachusetts scrip could not be
sold, without very serious sacrifices, and the only alternative was to call
in the assessments, or stop the work. For both scrip and assessments
would eventually be needed. The stockholders responded to the call
with great cheerfulness.

The report made to the Legislature next after a Railroad is opened for
use, is required by law to contain certain statistics of construction. The
report of January 4, 1843, contains a variety of these data, from which
the following are extracted : —

The length of the Western Road, from its junction with the Boston and
"Worcester Road, at Worcester, to the east abutment of the Connecticut
River bridge, is - - - 54 miles, 3,680 feet.

From thence to the line of New York, - 63 « 0,568 «

Total of Western Road in Massachusetts, 117 « 4,248 «

The Albany and West Stockbridge Road, from the

State line to the face of the Greenbush dock, at

the Hudson River, as then constructed, was 38 " 1,180 "

Total both Roads, ... 156 miles, 148 feet.

Total from passenger depot, in Boston, to the Hud-
son River, . - - 200 « 468 "
Total from passenger depot, in Boston, to Albany

shore, - - - - 200 « 883 «

Elevations above base line of Worcester Road, on the Mill Dam,
Boston : —

Western depot, at Worcester, ...
Charlton Summit, ...

Depot at Springfield, ...

Washington Summit, . . -

Track at State line, - -

Summit in Canaan, ...

Depot at Greenbush, ...

On the Western there are one hundred and forty-two separate planes,
twelve of them level ; ascending west, eighty-three ; descending west, forty-
seven.

473-M- :

feet.

908/oV

70-AV

1,456-iVff

916tfT

954-iVir

26-A-V

(C

72 HISTORICAL MEMOIR OP

Of the highest grades, or over sixty-nine feet per mile, there are, —

Of 74 feet, 5-ftV^ miles.

78 « 1-WA

79 " 4-iV,VV

Of 81 feet, 0-iViAAr miles.

83 « l-A/Wr "

The highest grades on the Albany and West Stockbridge Road, are of

40 to 44-1-%, - - -• - 9t^ miles.

Length of straight line on the Western, - 62 jWinr miles.

Length of straight line on the Albany, - - 17-1%^ miles.

The Springfield bridge is of seven spans, of 180 feet each, or 1,264
feet long.

The entire cost of the Western Boad to January 1, 1843, paid and
estimated for, or contracted, was - - $5,814,807 52

The Albany and West Stockbridge Road, - 1,751,984 05

Total, both roads, - . - . $7,566,791 57

The mountain division, of 13-,^ miles, cost $980,000, or ftver $70,000
per mile, and a single mile of it cost $219,929.87. The summit section,
in Washington, lA miles, cost, $241,311.39, or per mile $134,000.

About 1,100 feet of an embankment in the Richmond Swamp settled
below the natural surface from seventy-five to ninety feet, (as estimated
by the quantity of earth put in). The Connecticut River bridge cost
$131,612.12.

The session of the Legislature for 1843 was not allowed to pass, with-
out evidence of their great regard for the interests of the Western Rail-
road, in the appointment of a special joint Committee, of which George S.
Boutwell of the House was the acting Chairman, " to examine into the
past management and present condition of the Western Railroad Corpo-
ration, with power to send for persons and papers." A very wide com-
mission, covering periods embraced by former Legislative Committees of
investigation.

In the same month, or January 10, 1843, a Committee of thirteen was
appointed by the stockholders, with James Savage as Chairman, " to in-
vestigate the affairs of the Corporation, and to make any suggestions which
they may deem useful." The Legislative Committee reported that they had
more than twenty arduous sessions. Those of the stockholders' Committee
were more numerous ; and as both these investigations were carried on
during the same time — the stockholders' Committiee in the mornings, and
the Legislative Committee in the afternoons and evenings — and were
much upon the same subjects of inquiry, it will be convenient to give here
an account of the proceedings, as somewhat connected.

Before each Commitj;ee, stockholders and past or present directors ap-
peared, and made serious complaints against the directors, the former

THE WESTERN RAII,EOAD. 73

agent, and the former cWef engineer, on account of the purchase of the
Wmans engines, and the proceedings and reports were principally confin-
ed to that subject.

In providiiig motivfe power, it had Silways been conceded, that the trans-
portation o{ freight oyer the'heaVy grades of the Road west of the river,
would require powerful engines; The Legislative Committee report that
Messrs. Howard, Jackson, Lincoln, Bliss and Whistler Were appointed in
July, 1841, a Committee on moving pOwer, " with power to authorize the
purchase of such engines' as th^y thought proper." That they issued cir-
culars and received replies. Major Whistler, the engineer of the Boad,
went to Baltimore and examined "27ie Maryland," an erigine by Ross
Wiriafls, of twenty tons, eight wheels, all coniiectedj makitig the whole
weight effective for adhesion. He reported favorably, aiid Messrs. Jack-
son and Lincoln were appointed a Sub-committee to make a further exam-
ination, and, enquiries, with power to purchase. In company with the
chief machinist of the Lowell Locks and Canal Company, manufacturers
of locomotives, they went to Baltimore, and after satisfactory expeHmefits
aad inquiries, they' confirmed the opinion of Major Whistler, and the
Committee on moving power, on August 26, 1841, closed a contract with
Winans for seven engines, to be delivered by December 16, 1841, at
$11,000 ea.ch.

The Company had previously ha,d fengines of the LoWell* Locks and
Canal Company at about the same price. A minority of the Directors
were strongly in favor of engines by Norris of Philadelphia^ wh:6 'pro-
posed to make equally good ones at l6s's prices.

Major- Whi^leri a life-long engineer, and at' one time in superintend-'
ance of the Lowell Machine Shops, had known the character and capacity
of the Norris engines^ as they were running on the Worcester, Norwich
and Hudson' and Berkshire ROads, iaiid preferi-ed the Winans machines for
heavy j^et^'A^' trains, for which service they w'^re designed. The other
members of the Committee on moving power, except perhaps Mr. WU-'
liam Jacfc^dDi'had had no experience and no practieal ktowledge- iipoa
the subject. They had "cohfidfence in the opinion and skill of Major"
Whistler,' uiider' whose supervision' the ehguies were tobeused. ■ Mr.
Jackson, as a director afad agent of the Worcester Roiad; was familiat '
with the Norris engitfesi' irbidh idaily pdsSed his diobr; ■

During the'hfeArih^ before- the legislative Committee;' the President*
inf(ffmed"the4n, that 'the stOckhdiders' C0mniitte6 had appointed a' siib-coBl-'
mittee to witness trials of the Winans with other fenginesj with authority
to invite others to Witness them ; that the' principal Railrdad Stiperintea-
dents and engine builders in the vicinity were requested to attend.^ Sev-
eral of the legislative Committee expressed reluctance to proceeding fui?-
10

74 HISTORICAL MEMOIE OF

ther on the subject of the engines, relying upon a full examination by the
Committee of stockholders ; to which the President replied, that, if the
Committee went into the subject suflBciently to express an opinion, he
wished to produce witnesses from the road, who had run the Winans en-
gines ; and to exhibit evidence of trials. Upon which the Committee had a
consultation, and the President understood the chairman to say, that the
Committee did not wish to proceed farther on this subject, unless the
Directors desired to go on. The President in, a subsequent letter to a
majority of the Committee, stated that he did not suppose they would
express any opinion upon this subject, and he forebore to bring in wit-
nesses from the road.

In i>ie mean time the sub-committee* of stockholders having pro-
cured the attendance of Messrs. Parker, and Woodworth of' the
Worcester road, Storrow of the Lowell, Lee of the Providence,
Pratt of the Norwich, Whitwell of the Lowell and Nashuaj Hill
of the Eastern, Waterman of the Hudson and Berkshire, Messrs.
Hitfkley of Boston, and Brownell of Lowell, engine builders, pro-
ceeded with the proposed experiments and trials, on the twenty-first
and twenty-second of February, 1843. At the close, the sub-committees
submit the certificates of the experts, and say, " that upon one point, as
regards' these engines, there wOl be no dissenting voice, viz : that the
main feature in which they differ from all others, in use on the road, is,
their having eight wheels, all of which are drivers ; thus making the
whole weight of the machines effective, while it is so distributed as to pro-
duce the least possible injury to the road. Seven of the gentlemen invi-
ted, reported that frgm the trials had, as to the power of the Winans en-
gines to draw over the eighty-three feet grade, loads of eighty tons of
merchandise and sixty tons of cars, in all one hundred and forty tons be-
hind the tender, which they were told was the performance expected of »
them, and for which they were constructed, they had no doubt they were
equal to it, because they had seen them do more." That they saw no
defect in principle, and did not believe any such existed, that the princi-
pal fault was a frequent deficiency of steam, not from want of fire surface,
or of furnace, but that it probably arose from the short chimney rendered
necessary, by the upright position of the boiler, and that this want of
draught can probably be obviated at a comparatively small expense.
That as to the consumption of fuel, and as to repairs, it requires a larger
experience to judge ; that as to the peculiar principle of these engines,
abundant adhesion, and weight on wheels, below what is usual in other
engines, " we regard it as of very great value, and one which should not

♦ Messrs. Ward, Pickering, Daricotl and Dickinson.

THE WESTERN RAILROAD. 75

on any account be relinquished. It is peculiarly important, on the West-
ern Road, because of the steep grades, requiring great adhesion to sur-
mount them."*

Contrary to the understanding of the President of the Boad, the Leg-
islative Committee did report on the subject of the Winans engines, giving
their " opinion that the directors assumed too great a responsibility in the
purchase of so large a number of engines, as they had not at that time
been sufiSciently tested with the use of wood, to justify an outlay of nearly
$80,000." The majority of the Committee also express the "opinion,
that on the 1st of February, 1842, when the third engine was delivered,
they had been sufficiently tried to justify a well-founded apprehension,
that they would prove incompetent, without material alterations, to perform
the duty expected of them.f

The Committee also stated their conviction, that the Winans engines
consumed lyore fuel, and were more expensive for repairs than others.
Upon neither point, had there, at the date of the report, been sufficient
experience to judge correctly. As to the repairs, they were principally
made by Winans in 1842. The Committee estimate the cost of fuel, oil,
and repairs, per mile run, in comparison with other machines. The Pres-
ident contended that the true measure was the dviy performed, and this
more especially as applied to the consumption of fuel. Mr. Barnes, the
Engineer, said, " The comparative expense will depend upon the duty per-
formed." The cost per ton per mile, or per passenger per mile run, is uni-
versally held as the only true criterion. In 1841, the cost of fuel per ton
per mile, was fViA of a cent. In 1842, with the Winans engines, it was
i'd^ cents. •

It is proper to note, that in June, 1842, Major Whistler was called into
the service of the Russian Government, to construct the St. Petersburgh
•and Moscow Railroad, and the Company were not only deprived of his
services, and supervision, when the Winans engines were getting into full
operation, in 1842, but also of his advice and assistance during these pro-
tracted trials and investigations. ' Ilis duties were, by vote of the Board,
devolved upon the President, who had no professional experience On
the principal, subject before the committees. Upon the appearance of
the report of the Legislative Committee, however, he addressed a letter

* The ehinmey of the first of these engines brought upon the road proved too high
for some of the bridges, and the chimneys of all were shortened, thus affecting the
draught. Subsequently all the low bridges on the road were raised. Some parts of
the engines proved too weak, and Mr. Winans came upon the road and made the nec-
essary changes at his own expense.

f Messrs. Edward Dickinson, and Samuel H. Walley, dissenting.

76 mSTORICAl MEMOIR OF

to them, TCith a statement of facts and arguments in opposition to the con-
clusions of the report, trhich was printed in connexion with the report.^

The sessions of the stockholders' Committee were much delayed hy the
attendance of the oflScers, with the books and papers of the Company,
before the Legislative Committee. Nine of the Committee spent two
days at Springfield, in sundry examinations, and read the voluminous
reports pf this and prior years, en the subject of engines, and in their
report they gave a history of the proceedings of, the directors on the sub-
ject, of motive power. They say that at the request of Norris, a commit-
tee made a trial of one of his engines, with the . Lowell . engine gufifolk,
and reported, " that no part of the performance of the Noiris engine,
either on the Worcester or Western IKoad, indicated that its power was at
all superior to that of the Lowell engines ;" " that at the trial at Spring-
field, the Suffolk gave decided and unequivocal evidence of superiority."

A majority of the stockholders' Convnittee reported, "that reasonable care
was taken in examining the pattern engine, America, (the Winans ma-
chjjie, at Baltimore,) and that the purchase of the engines was judicious"
— and " that they were satisfied with the honorable fulfillment of their
contract ,by the contractors" — that " the Winans machine failed in many
parts, which were too small ; but that Winans made changes and repairs
at his own. expense, dviring, the ninety days allowed for their trial.

On the contrary, a minority of the Committee, Messrs. Pickering, Ho-
mer, and Thomas, in their report, condemn the engines in every respect —
their construction, their power, the expensiveness of operating them,
uncertainty of keeping time,— the want pf capacity of the tenders, being
on four wheels, and they add, that the first engine delivered should have
bjeen tried on the Western Eqad^ before ord.ering or accepting others.

Tie Legislative. Gopimittee called for a statement qf the number 0|f
officers attached to .the Road, and the salaries paid them^ The list was*
furnished, embracing all clerks, conductors,, way-agents, &c., in number
fifty-seven, and paid in the aggregate, $43,911.

...The Committee express the "opinion that these salaries .are. too high,
and pwght,to be materially reduced,"— and tluS: without excepting one in
the.;Wb<>le list, the ilowfist of which was .$144 per annum. , The J^resident
namedj ^veral irhich jmight t)$ reduced,, auiounting in the aggregate to
$8,760.

This Committee examined the finances of the Company, and allude*
to the fact that they held shares pf stock forfeited.for.unpa^d assessments,
or pleflged for^the same, on which . they estimate a loss of $139,510, on
sale. But the Treasurer was so fortunate as to dispose of those eh^es, at

* House Bocuments, No. 66, 1843.

THE "WESTERN RAILROAD. 77

an advance beyond their cost, or at a profit of over $30,000 — and they
dose by saying, " The condition of the Corporation is such, that any
delay in applying retrenchment where it is needed, will be ; fatal to the
stockbolders and dangerous to the State."

On the subject of salaries, the Stockholder's Comnjittee deemed it un-
necessary to go behind the report of the stockholders' Committee of March,
1840, who had canvassed the^ subject fully, and who expressed entire sat-
isfaction with them. They reported, that in the organization of the Board
in 1840 and 1841, there appeared by the record no difference of opinion
on this subject. In March, 1842, the former agent having succeeded Mr.
Wales in the presidency, a committee recommended, and the Board
resolved, that the duties of President and Agent be combined in one per-
son, and that he give his whole time to the business of the Road ;. that he
be paid ®3,000 and his expenses on business of the Boad, or when out of
the Commonwealth, and that the salary of the Engineer be $5,000. A
stockholders' director moved reductions in each case, which did not
prevail. The majority of this Committee made no recommendation on
the subject of salaries. The minority recommended that " all our salaries
be cut down in the ratio at least of twenty-five per cent."

One of the Directors of 1841, having declined a re-election, had ad-
dressed a letter to the stockholders, recommending among other things, a
" low rate of charges." This Conninittee say " what is low is a matter of
positive, or comparative estimate," that " distinct parties have not been
formed on this subject in. the Board of Directors ;" that before opening the
road through to Albany, the passenger fare was proposed at $6 and $5 ;
and compromised at $5.50 ; that in May 1842, a director moved that the
first class passenger fare between Boston and Albany be $4, upon which
no definite action was had. On November 29, 1842, the fare was fixed
at $6,'fQr the winter, and $5 afterward. The; Committee say, that all the
roads between Albany and Buffalo, charged foiir- cents per mile,* while
the Western has two and one-half.

, As to freight charges the Comnjittee say " the established rates are even
lower generally tJian the Committee. pf. investigation of March 1840 rec-
ommended. The majority of this Committee made no specific rccoinmenr
datiou on the subject of passenger or freight charges. The minority
said, it would be much better to reverse the rule then adopted, by fixing
the .passenger fares m summer ai $6, and at $5, in the winter, but that. $4,
the year through would be the best point, if the Worcester Company
would take a pro, rata share.

•We have thus given an abstract of all the, esseiitial parts of these two

*Th© law now limits the-roaito on that line, to two cents per mile.

78 HISTORICAL MEMOIR OF

investigations and Reports. The only matter which fell under the ani-
madversions of either Committee, was the purchase of the Winans' en-
gines, which it was conceded had not been suflSciently tested, to judge
of their economical efficiency. The contract for freight engines had been
too long postponed, as the road was to be opened through in December,

1841, giving only a few months for construction of the engines. This was
the reason assigned by the Engineer and Superintendent for engaging so
many at once. All were anxious to get powerful machines, with the least
weight on each wheel. Probably no man in the country was more com-
petent to judge of the character of the diflferent kinds of engines for spec-
ified work, than Major Whistler. He, and the Directors, and Agent, acted
in good faith in the matter ; and, from the evidence they then had, and
the examinations made in 1843, and the trials and experiments of the
experts, the purchase was fully justified.

But it is proper, in this connection, to say, that, upon a trial of several
years, either on account of the prejudices against them among the opera-
tives, or some of the officers, and consequent want of care, or the practical
defects in their construction, and operation, or both, the Winaas engines
did not, on this Road, meet the expectations of their early friends ; and
that, after eight years from the time of their introduction on the Road,
they were gradually laid aside, and the annual report of the Directors, of
January, 1850, does not include one of them in the schedule of engines
on hand.

The writer is, however, favored with a letter of late date, from one of
the experts on the trial of engines by the last Committee, and who subse-
quently had a large experience as Superintendent of the Baltimore and
Ohio Road, where Winans' engines of somewhat similar, though modified
construction, were extensively used. The writer says, " he found a dozen
engines similar to the * Crabs ' in all respects, excepting that they had
horizontal boilers ; that they were of the heaviest class at that time in
use, and did good service ;" that Winans " deserves the credit of having
been the maker of successful engines, having all their weight applicable
to draft, on eight wheels, and more simple in their ^?a» than any machines
I have ever seen built or pictured;" that "engines now (in 1862) in use
on the greatest Railroad in. our country, attest the soundness of the main
distinctive principle of the ' Crabs,' viz., the adhesion of all the wheels in
connection, whereby a machine of given weight, propels a larger load
than under the more popular plan."

On the retirement of Mr. Wales from the presidency in Februar;^,

1842, and the election of Mr. Bliss, the General Agent, to that office, (he
Board voted, that the duties of Agent and President should be united in
one person, and that he should give his whole time to the service of the

THE VESTBRN RAILROAD. 79

Company. And, when in June, 1842, Major Whistler, the Engineer and
Superintendent resigned, to go to Russia, the Directors ordered that the
duties of Engineer and Superintendent should be devolved upon the
President — thus concentrating upon one officer, the duties of President,
Agent, Engineer, and Superintendent.

The organization then was — the President the only general executive
officer, with local masters of transportation at Springfield and Pittsfield, and
local agents, as now, at the several stations.

The President, from time to time, advised the Board, that his health
and strength were not adequate to this accumulation of duties, and urged
that the interests of the Company required the appointment of a Super-
intendent. Aflef an interval of three months, the Board, on September
29, 1842, chose James Barnes, the acting master of transportation, at
Springfield, as Engineer, and as such he assumed, with consent of the
President, certain duties of Superintendent.

The election of Directors in February, 1843, was the first occasion of
the kind, in which there was any considerable contest or excitement.
The subject of fares and charges was much agitated during 1842, and a
difference of opinion existed in the Board of that year. One or more
members had advocated and recommenTOd to the stockholders, that the
passenger fares between Boston and Albany should be put at three dol-
lars. But a majority advocated a medium charge, in opposition to that
low fare. The efforts made, and the interest felt, in this question, aided
by personal partialities or antipathies, induced a large attendance, or rep-
resentation at the election. Nearly fourteen thousand of the twenty thou-
sand shares of private stockholders, were represented and voted upon.
The result was, the election of John Henshaw, E. H. Derby, George
Bliss, William Jackson, and Jonathan Chapman, to which were added, as
State Directors, Thomas F. Plunkett, S. C. Allen, J. P. Tarbell, and
Edmund ~ Dwigl^t. All parties were so much occupied in the several
investigations of Committees, that the Board was not organized tiU March
2l8t. Before the choice of President, a vote was passed, six to three, on
motion of Mr. Dwight, that the duties of President and Superintendent
should not be united in the same person. And on motion of Mr. Plun-
kett, another State Director, it was " resolved that the compensation of
the President be three dollars for each day engaged in the business of the
Corporation, and all expenses when absent from home on said business."
Soon after the election, this vote was rescinded, and at the close of the
year, a salary of $500 was voted. There were five ballotings without
success. After an adjournment, one of the candidates stated to the Board,
that he considered there was an important principle involved in that elec-
tion, and that he should cast a vote for himself. This, his opponent de-
clined to do. On the sixth ballot, Mr. Dwight was elected*

80 HISTORICAL MEMOIR OP

The new President proposed to his predecessor to take the chairman-
ship of an Executive Committee, with executive powers in the manage-
ment of the business of the Company, but this offer was declined.

On April 7, 1843, a resolution was adopted, that the duties and powers
exercised by the Superintendent and Engineer, should be exercised by one
person, to be styled Superintendent, and to be thereafter chosen by ballot.
Under this, James Barnes was chosen Superintendent. .

One of the first acts of the new administration was, a vote to reduce
first class passenger fares, Boston to Albany, to $4, provided the Worces-
ter Company would unite in the reduction. That Company declined a pro
rata reduction, but assented to take $1, instead of $1.25, as on the pre-
vious year. The Western Directors then voted to m&e the residue of
the reduction themselves. This gave the Worcester Company $1,
and the Western for 156 miles $3, or 1^ cents per mile. This
was from April 12, to December 1, 1843, when the fare was advanced
to $5.«

To the low fares of 1843, a portion of the Board, and many of the
stockholders were decidedly opposed, and, as the administration had
pledged' themselves upon the low fare system, the operation of it was
watched by all parties with murai interest.

During the summer or early autumn df 1843, at a meeting of Direc-
tors at Springfield, a member called their attention to the fact, that
the business of the road was not equal to the estimates formed for ,it,
and had not increased over the prior year, as much as it should have
done ; and he assigned as a reason, that proper efforts were nottoaide by
the managers, td attract business to the road, either at Albany, or the way
stations. The President remarked^ that it was not his duty to take meas-
ures to secure traflBc to the road.

In the annual Report of January 1844, the business of 1842, and 1843'
is compared, (Claiming an advantage of the latter year. Such comparisons
are unreliable, unless all the exitraneous c&cumstances are considered.
The year 1842 was the first one of the opening through to Albany,
and the business was done over fifteen miles of the Hudson and Berk-
shire Boad, with Its flat rail, and high grades ; and the traffic was not yet
accustomed to a new channeL

*I)fi these tj moliths, Apitfl 15, to Dedember 1, 1843, the numbW of first cliass

through passengers on the Westem was lt,653, -paying at $3, $52,959

In the- same 7^' months of 1843, number of passengers,- 12,443 paying$4. 49,'Z72

$3,18^
Not a large increase for nearly fifty per cent, more service, and upon a road rtoently
commencingi mid gradtially increasing in business.

THE -WESTERN RAILEOAD. 81

The total receipts in 1843 were ... - $573,882 51

« « « '. « 1842 « - - - - 512,688 28

The total increase in 1843, was ... $61,19423

The increase of 1844, over 1843 was - - - 179,870 21

« " of 1845 over 1843 was - - - 239,597 64
The same report claims an increase of receipts in the last

eight months, of 1843, over the same months in 1842, of $59,797 86

The increase in the same months of 1844 over 1843, was 144,939 35

The Report of January 1845, states the increase of passenger receipts
from 1842 to 1843 at SJ per cent., merchandise, 21 J; The increase
of passenger receipts from 1843 to 1844 at 30^ per cent., merchan-
dise 34i.

In the spring of 1843 a committee on retrenchment was raised, and on
their report, the Board directed important reductions in salaries and pay
of operatives ; stated at $15,767. The actual reduction proposed was,
$12,625. This caused great dissatisfaction, some left the service, and,
within the succeeding year, it became necessary to restore the pay of many
minor oflScers and operatives. By a reference to the table of market
sales of the stock of the Company, in Appendix P., it will be seen that in
1841, sales were as high as 85^ per cent, and for five years preceding
they had not been below 74 per cent. In 1842, very unexpectedly, assess-
ments to the amount of 40 per cent, were laid, payable at short dates.
The stockholders had received strong assurances, that these assessments
would not be called for.

This threw large masses of the stock upon the market, and depressed
the price. In that year, it sold as high as 80|-.

In 1843, the highest sale was, - - 59f

« ' lowest « - - 40|

1844 the highest « - - - 92

« lowest " - - 51|

And for five years thereafter, the highest prices ranged from 85 to
114|. From the market price of stock, the public readily form an opin-
ion of the success of the business.

By a Resolve of the Legislature of 1843, chap. 66, it was provided,
that the State Directors should represent the shares of the State in all
meetings of the stockholders, and act therein, except for the ch^iice of
Directors. ':(;;:

■ At the election of February, 1844,, the representation csf stockholders
was again large, 10,597 shares being voted upon. It resulted in theschoice
of G. Bliss, W. Jackson, J. Stickney, E. Austin, and George ^f^att, Thei.
11

82 HISTORICAL MEMOIR OF

State Directors were, James Bussell, A. H. Howland, R. Campbell, and
E. Dwight. At the meeting of Directors for organization, they first voted
*' that the person who shall be chosen President, shall perform active
duties as General Agent of the Corporation." George Bliss was chosen
President. The Board raised the through first class passenger fares to
six dollars, or three cents per mile, and way to three and one-half cents
per mile.

During this year, the Hartford and Springfield Bailroad was opened,
giving a continuous railroad route between Boston and New Haven, and
thence by steamer to New York. The Troy and Greenbush Railroad
was also opened at the western terminus, and the inclined planes with
stationary power, at each end ,of the Mohawk and Hudson Railroad, were
dispensed with, in exchange for reasonably practicable grades for locor
motive power. The TJtica and Schenectady Railroad was authorized to
carry freight during the suspension of navigation on the Erie Canal.
That was the only Road between Albany and Buffalo which, before that
time, was forbidden to carry freight.

From the opening of the Western Road to Springfield, there had been
uniformly a difference of opinion between the Directors of the Boston and
Worcester and Western Roads, on the subject oi fares. Before that open-
ing, the rates of the Worcester Road for their own business, were higher
than a majority of the Western Board approved, and when it became
necessary to establish charges on the joint business of the two Roads, and
the proper division of receipts, it was often difficult to reconcile the views
of the two Boards. These diflTerences, however, did not seriously inter-
rupt their harmony, until the winter of 1843-4, when the Western Com-
pany applied to the Legislature for relief. The controversy thus com-
menced, has been continued, with longer or shorter intervals of peace, to
the present time, (1863,) and is still in progress.

For a better understanding of the subject, it is proposed to exhibit the
whole history of it in one continuous narrative, hereafter, rather than
interpolate detached portions of it in the text of this Memoir.

In the Annual Report to the stockholders in February, 1845, the Direc-
tors submitted full statements of the past financial operations of the Cor-
poration, and of its then present condition, and the provision for future
exigencies. (For particulars, see Appendix Q.)

The receipts in 1844, were - - $753,752 72

Exceeding those of 1843, by - $179,870 21

The expenses were - - . 314,074 20

Exceeding those of 1843, by - 10,102 14

THE WESTERN RAILEOAD. 83

The net receipts were - - - $439,678 52

This was applied to interest, sinking funds, and

one dividend of three per cent on 26,734

shares,* declared in January, 1845, and

paid from receipts of 1844, - - 418,189 49

Surplus to contingent fund, - - $21,489 03

At the annual meeting in February, 1845, George Bliss, William
Jackson, J. Stickney, George Pratt, and E. Austin, were chosen
Directors, and they with J. Russell, R. Campbell, E. Dwight, and A. B.
Howland, State Directors, constituted the Board for the year. At the
organization of the Board, Mr. Bliss was chosen President. An act of
February 10, 1845, prodded for the choice of two of the State Directors
annually, to hold office for two years, with a provision for filling vacancies
by the Legislature. It authorized the Governor and Council, for good
and substantial reasons, upon complaint, to remove any State Director,
and appoint another, to hold until an election by the next Legislature.

' An act of March 25, 1845, authorized the Directors to increase the
capital stock, by adding from time to time, for two years, a number of
shares df $100 each, equal in amount to the sums before paid, or there-
after to be paid, to the Sinking Fund, with the interest accumulated there-
on, at the times of such increase ; with power to sell the same, at not less
than par ; requiring that $330,000 of such increase be expended for con-
struction, and for engines and cars; and that the residue might be added
to the general receipts, and appropriated as the Directors should judge
best.

The controversy with the Worcester Company had been continued,
and at this date, it had been transferred to the Supreme Court ; where, by
the law's delays, it was likely to be suspended indefinitely, without any
decisive result. The Western Directors still claimed that the Worcester
Company, under existing arrangements, received an undue share of the
receipts of joint business. In this state of things, parties interested in
each Company determined to make a new effort for an amicable adjust-
ment by a union, or consolidation of the two Corporations. On March
13, 1845, Samuel Greele, as chairman of a Committee appointed at a
meeting of sundry stockholders in both Corporations, made a communica-
tion to the Western Directors, enclosing a copy of proceedings of said
meeting, in relation to a union of the two Corporations, requesting them
to call a meeting of the stockholders of the Western Company, to consider

* Three thousand two hundred and sixty-six shares were owned by the Company,
taken in the collection of assessments, and afterwards sold at a profit of over $30,000.

84 HISTORICAL MEMOIR OF

the subject. The Board instructed the clerk to call such meetings in the
succeeding month of April.

The meeting was accordingly held on May 27, 1845, the object was
approved, a Committee appointed, and the result with a proposition
for the union, communicated to the Directors of the Worcester Company;
who called a meeting of the stockholders of that Company, at which a
Committee was appointed to act upon the subject, in concert with the
Committee of the Western Company.

On behalf of the Western, were J. Quincy Jr., Addison Gilmore, H.
Andrews, and Joseph Whitney, and for the Worcester, Jonathan Chap-
man, S. Bartlett, John Hatheway, and Moses Williams.

These Committees called for a variety of statistical and other informa-
tion, to show the debts, obligations and condition of the two roads, their
equipments, and property, and the proceeds of the business of each, to
enable them to form an estimate of the comparative value of the two
properties. This information was given much in detail, and the sub-
stance of it will be foimd in the Appendix, as subsequently given to a
Committee of the Worcester Company, to whom the Eeport of this joint
Committee was referred. (See Appendix E.)

After several conferences, the Committee of the Worcester Company
were requested to state the terms upon which they would recommend to
their stockholders the proposed Union. On full deliberation, they pro-
posed terms which were assented to by the Committee of the Western
Company, and they were unanimously recommended by both Committees
in substance as follows.

The joint Eeport held, that the proposed union of the two roads is de-
sirable, if an unexceptionable mode of accomplishing the object could be
suggested, for the reasons, 1. That the great Western route from Bos-
ton, the capital of New England, to Albany, which is the Gateway of the
West, is so clearly marked out as a single, distinct,, and entire route, that
the great channel of communication between the two prominent points,
should be one likewise.

2. A saving of expenses in management, a less number of officers,
agents, &c., — the engines and cars more advantageously arranged, and a
less aggregate of motive power necessary.

3. It will put an end to perplexing questions and controversies, preju-
dicial to the public interests " and to the safety and value of private prop-
erty in the stocks."

As to a plan of union, the Committees discarded the idea of a lease by
one Company to the other, at a stipulated rent — or a purchase by one of
the Eoad of the other ; hut recommended, that a new charter be obtained
for a new road between Boston and the line of New York, embracing the

THE "WESTERN RAILROAD. 85

limits of both existing roads — with authority to the new Company, to
purchase both properties, and their appurtenances, at rates to be agreed
upon by the existing Companies, the details of the charter to be arranged by
them, — the existing companies to agree, thus to sell to the new company,
with provision, that ecLch stockholder in both Companies, might take the
value of his present shares, either in stock of the new Company at par, or
in cash at his election.

As to the price to be fixed to the property of each Company, they took
into consideration the market value of the shares of the two Companies,
and the condition, and prospects of the two roads ; and they came to the
unanimous conclusion, that the property of the Worcester Company
should be valued at twenty per cent, per share, above that of the West-
ern, or a share of the Western considered worth $100, of the Worcester,
$120. The capital of the Worcester, with additions then about to be
made, to be three millions, for which the new Company were to pay
$3,600,000, in stock or money, and that of the Western at $3,000,000, to
be paid by the new Company in stock or cash. These two amounts, $6,-
600,000, with such additions as the new Company might need, were to
constitute the capital of the Company, — any shares of either Company not
taken by stockholders, to be sold for the benefit of the new Company; the
transaction to be as of February 1, 1846, and the accounts of both Com-
panies to be made up to that date. The Worcester Company to be at
liberty to make a dividend not exceeding five per cent., the Western one
of three per cent. After that date, the earnings to enure to the benefit of
the new Company. The Committees, however, say, that such a change
should not take place, unless by the very general concurrence of the
stockholders of both Companies.

This joint Report was submitted to the stockholders of the Worcester
Company December 17, 1845, and committed to a committee consisting
of A. Walker, J. Hatheway, D. Dennyj W. T. Andrews and T. C. Leeds,
" to ascertain and report upon the present pecuniary condition and prop-
erty " of the two Companies, and the rate of interest on the loans, and
time of maturing of the debts, of the Western. That Committee address-
ed a variety of questions to the officers of both Companies, to which an-
swers given, are annexed to their Report, of January 2, 1846. A meet-
ing of stockholders of the Western Company was holden December 18,
1845, at which the joint Report was submitted and ordered printed, and
a Committee was appointed, to enquire and report upon the financial con-
dition of the Worcester Company.

The answers of the Western officers gave the lengths of the Western
and Albany roadsj the cost of construction and equipments, fully paid
for ; materials on hand, length of double track, schedules of engines and

86 HISTORICAL MEMOIR OF

cars, and the condition of them and of the road — debts due, and a state-
ment of all legislation respecting both roads. Similar answers were given
by oflScers of the Worcester Company so far as applicable. Abstracts of
the material parts of these answers will be found in the appendix R.

At an adjourned meeting of the stockholders of the Worcester Compa-
ny January 12, 1846, the President of that Company submitted to his
Board, a communication on the subject of the comparative condition and
value of the properties of the two Corporations ; which being read, the
Honorable Jonathan Chapman offered three resolutions, approving and
authorizing the union on the terms proposed by the joint Committee, and
a fourth, that the proposed new charter be submitted to, and approved by,
the stockholders, before a sale should be made to the new Company ; and a
fifth, that the sale be not made, unless approved by a vote of two-thirds
in interest of the stockholders present, or represented at the meeting at
which the subject should be finally acted upon.* After a full discussion,
Mr. Chapman's resolutions were, on motion of Sidney Bartlett, laid on
the table, and the President's address was ordered to be printed and
distributed to the stockholders — and thereupon, on motion of Honorable
Samuel Hoar, the whole subject was indefinitely postponed. This was
done without taking any vote as to the propriety of the terms proposed,
or any change of them, but repudiating the idea of any union, upon any
terms.

A meeting of stockholders of the Western Company was called and
holden January 13, 1846, to act upon the joint Report of the two
Committees ; when the proceedings of the Worcester stockholders and
the address of their President were officially communicated to them.
Whereupon the Directors were requested to apply to the Legislature for a
reduction of the rates charged by the Worcester Company for doing the
business of the Western, and for a right to construct an independent
branch from Worcester to Boston, and that they be requested to make
the necessary surveys.

The address of the President of the Worcester Company, was a labor-
ed attempt to enhance the value of the Worcester Road and property, —
and to depreciate the value of the Western road and property ; and it
finally arrived at the conclusion that the $3,000,000 of stock of the
Western Company was worth $2,562,649 only.

This address, with the proceedings of the Worcester stockholders upon
the subject, were referred to a Committee, consisting of G. Bliss, W.

* Mr. William ^turgis moved to amend the resolution fixing the price of the Wor-
cester shares, by striking out $3,600,000, and inserting $4,000,000, (or $133J per
share.) The meeting declined to act upon this, and It was cut off by the motion for
indefinite postponement.

THE WESTEIIN RAILROAD. 87

Jackson, J. Savage, A. Walker, T. J. Lobdell, B. R. Nichols, and S.
Fairbanks. Their report was made to the stockholders, in January, 1846.
Abstract of address and report are in Appendix, S.

The traffic department of the road was successfully conducted in 1845
and with satisfactory results. These exhibited a constantly increasing
business, as the facilities for it became more widely known, and as efforts
were made to draw to the road from greater' distances, on lateral points,
traffic which had been accustomed to seek other channels of communica-
tion. ShoEt lines of stages were established to come directly to the road,
and increased facilities were given for way freight, as well as passengers.

The Eailroad between Springfield and Northampton was opened dur-
ing 1845, giving promise of no inconsiderable additional business to the
"Western. And the Hartford and Springfield road, opened near the close
of 1844, gave new facilities for business between Boston and New York,
by way of New Haven, during the whole of 1845.

The receipts of 1845 were - - - $813,480 15

Exceeding those of 1844, by - - $59,727 43

The expenses of all kinds were - - . 370,621 25

Exceeding those of 1844, by - - 56,547 05

The net income was - - - 442,858 90

This was applied to interest, sinking funds, and
one dividend, of three per cent., paid Sep-
tember 1, 1845, - - - . 420,255 70

Balance, - - - 22,603 20

During the year, the 3,260 shares of stock of the Company,
held by the treasurer, and taken for assessments, and
paid for out of income, were sold at an advance above
cost, of ..... $31,973 50
This amount being deducted from the interest of the year,

add surplus of 1844, - - - 21,489 03

Amount of contingent fund, carried to 1846, - - $76,065 73

%

The Report for 1845, (January, 1846,) gives a number of statistical
tables of through and way passengers in 1842-3-4 and 5, — the pas-
senger fares charged from the opening of the road to Springfield, in
October, 1839, — the receipts from through and way passengers in 1843-4
and 5, with the rates charged at the several dates. In the greatest part
of 1843, the first class through fares between Boston and Albany were
$4. From April 1, 1844 to December 31, 1845, they were $&. From
1844 to 1845, there was a diminution of through passengers, and of gross
receipts from them.

88 HISTORICAL MEMOIR OF

The Directors say, it appears from the tables " that nearly all this dim-
inution was in the six months from May to October inclusive, when com-
petition was rife on the Sound and by the Hudson river, — passengers pass-
ing thus between Boston and Albany for $2, and $2,50 only." They
add, " that these statistical results afford very important aid, in deciding
upon the rates of charges which will produce the greatest net income
from that source," and " that we have arrived at a point, when from the
experience of the last four years, the Directors may form a tolerably cor-
rect opinion, as to the rate of passenger fares to produce the. greatest in-
come." " And, after maturely weighing all these considerations," the Di-
rectors " have unanimously arrived at the conclusion, that a moderate
reduction of the passenger fares, both through and way, is advisable the
present year," (1846) and they add, " should a competition exist upon the
Sound, and upon the Hudson River, reducing the fares, so as to threaten
materially to draw off the Boston and Albany passengers to that route, it
would be advisable to run a quick special train between Boston and Al-
bany, for through passengers at reduced fares, stopping only when neces-
sary."

The market price of the stock of the Company in 1845 indicated the
estimate of the public in the success of the business, and its general man-
agement. In 1843 it ranged from forty-two and three-fourths[to fifty-nine
and three-fourths, and in 1845 from ninety and one-half to one hundred
and four and one-half. In 1845 two dividends were made of three per
cent, each, beside paying into the sinking fund $50,000., In 1842 and
1843 the income did not warrant any payment to the "Western Sailroad
Fund.

An act of March 3, 1842, revised on March 18, 1845, incorporated the
Pittsfield and North Adams Railroad Corporation. In the course of the
autumn of 1845, the requisite capital was subscribed, the Company was
organized, and the road located and put under contract. It extends from
a junction with the Western road, about two miles easterly of the Pitts-
field station, about eighteen and one-half miles to North Adams. The
Western Company had previously made a preliminary contract with the
Pittsfield and North Adams Company, that the road should be construct-
ed by the Western Company, with funds provided by the former Compa-
ny, the Western to take a lease of it, and run it under a contract of trans-
portation for thirty years, paying a rent at six per cent, annually on its
cost, payable semirannually; and after the expiration of that period, the
Western agreeing to buy the road, its franchise and property at costj or
to take a new lease for ninety-nine years, at an annual rent of five per
cent, payable semi-annually. That contract of transportation was made
January 30, 1846, and a copy of it is annexed to the aQnual Report of
January 1846.

THE WESTERN RAILROAD. 89

Parties in North Adams gave to the Western Company a guarranty,
with collateral security, deemed then to be adequate, to secure any defi-
ciency of income to pay the rents for the first ten years. The capital on
which the six per cent, rent is paid, is $450,000. The road was opened
for use in the fall of 1846, and the result of the first years' business, — to
November 30, 1847, showed a deficiency of net income to pay the stipulat-
ed rents, of $17,128.04. This was charged to the guarranty fund. The
parties providing that fund claimed, that in stating the business of that
road for the year, there should be allowed, as income, in addition to the
direct earnings on the eighteen and one-half miles of road, a reasonable
sum for the joint business carried upon it to and from the Western, and
passing over the long line of the Western or parts of it; and that this ben-
efit to the Western was more than adequate to pay the deficiency of the
stipulated rents. But the ofiicers of the Western Company declined to
acknowledge that principle.*

In February, 1846, complaint was made in the New York Assembly,
against the Albany and West Stockbridge Railroad Company, for refus-
ing to carry over their road, the United States mails for the city of New
York, to a connection with the Housatonie Bailroad. The subject was
referred to the Committee on Bailroads. The Postmaster of Albany,
the President of the Western Bailroad, and their Agent at Greenbush,
were summoned and examined by the Committee ; when it appeared that,
for the winter mail between Albany and New York, the Post-office Depart-
ment advertised for service by stage only, and had not asked for railroad
service. But that the Railroad Company had voluntarily carried the
mails in the cars between Albany and the State Line, for a month, with-
out compensation, when the Department transferred them to the stage
route, via the Hudson river. The Committee, on February 16, 1846,
reported the facts, and say " they arrive at the conclusion which they
have with greater pleasure, as the Road in question is distinguished for
its punctuality and speed, — and its attention to the wants of' the traveling
and business community," and they ask to be discharged from the further
consideration of the subject.

On the 3d day of January, 1846, just ten years from the organization
of the Western Railroad Corporation, the President, Mr. Bliss, who, dur-
ing that time had been in the active service of the Company, issued a
circular letter to the Stockholders, declining to be a candidate for re-elec-

* In November 1848, the guaranty fund, was in the same way, charged for defi-
ciency of income for that year, $15,929 54, and in November, 1849, $1,^15 36. In
November, 1850, the deficiency was $1,851 59. But the guarantee fund being ei--
hausted, by payment of only a part of the deficiency of 1849, the balance and the do-,
ficiency of 1850, were paid by the "Western Raihoad Company, being $11,219 11.
12

90 HISTORICAL MEMOIR OB"

tion as a Director, on account of the state of his health, and the necessity
of relief from the pressure of business. (See Appendix T.)

During these ten years, with the exception of 1843, when he ser\'ed
as a Director only — he had given his whole time to the service of the
Company, and been intimately connected with its operations in both States,
and in both the construction and traffic departments. In the first six
years, the roads had been finished through between Worcester and Alba-
ny, at an expenditure of about seven and three-quarter millions of dollars,
including equipment — and as efficiently for purposes of traffic, as the
means which could be controlled allowed. This was done under the im-
mediate direction of Captain William H. Swift* and Major George W.
Whistler.

The traffic department, commencing east of the river in October 1889,
and continued through in December 1841, with the use of fifteen miles
of the Hudson and Berkshire Boad, was at first organized by Cap-
tain Swift, and afterwards perfected and systematized by Major Whistler ;
and, untU June 1842, when the latter went to Bussia, he was relied upon
for providing the motive power and rolling stock, and for the rules and
regulations of the trains, and for systematizing the operations of employ-
ees of every grade. He had partially matured a system of discipline and
responsibility, applicable to every department of business ; and when he
resigned, he had entire confidence that, not only the basis thus commen-
ced, but the motive power to carry the system into execution, were the
best that could then be provided for the success of the business. This
system was continued under other auspices, with such improvements and
changes, as the exigencies of the service from time to time required, until
the declination of his associate in February 1846.

A reference to the table in appendix U, will show that the traffic of
the road had gradually increased from year to year, — each year showing
a satisfactory gain over the preceding. The Company had paid two
dividends of three per cent, each in 1845, and the stock of the Company
had appreciated fi-om less than fifty per cent, in 1843, to near par at the
close of 1845.

The necessity of a double track in parts of the road, had been felt, the
want of it causing an increase of expenses by delays of trains ; and it
had become apparent that the large and inceasing freight business would
soon imperatively require this addition to the facilities of the road. As
yet, however, the finances of the Company had not been sufficiently estab-
lished to warrant entering upon so large an expenditure. But the mana-
gers of the road then believed, that these facilities might soon be provid-

'i' Captain Swift resigned the office of Resident Engineer in the winter of 1839-40.

THE WESTERN RAILROAD. 91

ed to a reasonable extent, by an addition to the capital, or an increase of
the funded debt, or by both, without hazarding regular dividends.

At the annual election, February 11, 1846, Messrs. Bliss, Jackson,
Pratt and Austin, (four out of five of the stockholders' Directors) declin-
ed a re-election, and Messrs. Addison Gilmore, Josiah Stickney, Stephen
Fairbanks, John Howard and Jonathan Chapman were chosen Directors
on the part of the'private stockholders, who with James Russell, Dr. R.
Campbell, E. Dwight, and A. H. Howland, on the part of the State, con-
stituted the Board for the year. Mr. Gilmore was chosen President.

The controversy with the Worcester Company had continued actively
to the close of 1845, and in January 1846, a new application was
made to the Legislature, by the "Western Company, for authority to pur-
chase lands in Boston, for an independent depot for that Company. Still
new propositions passed between the two Boards, but without any suc-
cessful result.* The proposed change in the Presidency of the Western
Company having been announced in the circular of the President, early
in January, it was understood that Mr. Gilmore was designated to take
that office, and he having been an active stockholder and director of the
Worcester Company for many years, it had been intimated that the Wor-
cester Board would not farther negotiate with the old members of the
Western Board-t

Immediately after the organization of the new Board of the Western
Company, an agreement was made, bearing date February 17, 1846,
through Mr. Gilmore and Mr. Hale, the Presidents of the two Compa-
nies, settling the matters in controversy, and under which all the adver-
sary proceedings were staid. This " Contract of 1846," as it has ever
since been designated, prescribed rules for the division of the joint re-
ceipts for three years from its date.J

Up to the commencement of 1846, the duties of Attorney and Solicitor
of the Company had been performed by Mr. Bliss, during the ten years
of his General Agency and Presidency, (except in 1843,) with such aid
in suits as was necessary. The Board subsequently established a sep-
arate department of Solicitor and Attorney.

* The whole is given in the continuous narrative hereafter.

f This view was confirmed by a letter addressed by Mr. Gilmore to the then Pres-
ident, February t, some days before the election, requesting " information in relation
to all the points of difference between the two Corporations,'' as " prompt action was
necessary, in order to ascertain whether any arrangement can be made with the
Worcester Company," &c.

\ In commemoration of this event, a great entertainment was given by the Worces-
ter Company, in the Hall of the United States Hotel, to some two or three hundred

92 HISTORICAL MEMOIR OF

"With a view to the convenient making up accounts, and preparing for
dividends, and a report to the Legislature, the close of the financial year
was changed from December 31, to November 30, and, of course, the
financial year of 1846 could embrace the business of eleven months only.

At the close of 1846, the Directors reported that the business of the Com-
pany was increasing, and their " affairs in a flourishing condition." That the
increase over the corresponding eleven months of 1845, was twenty and
one-half per cent, on freight, and thirteen and seven-tenths on passengers,
averaging seventeen and one-fourth per cent., " besides the amount over-
come by the reduction of passenger fares." In 1845, the through passen-
ger fares were six dollars. Under the conviction that this charge was too
high, to control the competition by other routes, the Board of 1845, had,
as has been before noted, advised a moderate reduction. From April 1,
1846, that fare was fixed at five dollars, giving the Western four dollars
and the "Worcester one dollar, under the late contract. Of the six dollar
fare, the Western had four dollars and ninety cents, the Worcester one
dollar and ten cents.

As suggested at the close of the Report of the preceding year, the
competition by water at low prices, in the summer of 1846, induced
the Directors to put on a cheap through train by night, for through pas-
sengers only, and stopping only when necessary for wood and water. It
commenced running, May 18, 1846, and continued till August 24th, at a
fare of three dollars through ; of which the Worcester Company had fifty-
six cents, and the Western, two dollars and forty-four cents. It left Bos-
ton and Albany at evening, arriving at each city at four A. M. The fare
being less than that of the second-class cars on the regular trains, it at-
tracted. the second-class passengers from those trains, to the discomfort of
the regular passengers by the night train ; and, not being successful, it was
■discontinued before -the close of the season of navigation.

The receipts of 1846, for eleven months, were, *$878,417 89
The expenses,t ... 412,679 80

Net receipts, for eleven months, - $465,738 09

Of this, was applied to interest, and two three per

cent, dividends, ... 448,731 57

Surplus carried forward, - - $17,006 52

The income was not adequate to pay eleven-twelfths of the one per
•cent, to the Sinking Fund, and those payments were made from the pro-
ceeds of shares of the increased capital. An engine, and passenger and

* Adding December earnings, the receipts for the year were $954,417.89.
-f Against $332,012.38 in the same months in 1845.

THE -WESTERN RAILROAD. 93

freight cars were added to the Road, at a cost of $22,950, and charged to
expenses. The capital stock was increased by adding $400,000, under
the act of March 25, 1845, making $3,400,000. The Pittsfield and
North Adams Road was opened for use,' December 1, 1846, when the
"Western Company commenced operating it.

By act of the Legislature of April 24, 1847, the Company was author-
ized further to increase the capital stock, not exceeding $1,600,000, the
proceeds to be appropriated for expenses of additional construction, — for
engines and oars, — for payments to the Sinking Fund, and purchase of
Massachusetts sterling scrip ; with authority to pay that fund in sterling
scrip, and to purchase the securities of the fund with sterling scrip, — no
shares to be sold under par. The addition was made — in the first six
months, of fifteen hundred shares, and afterwards four thousand five hun-
dred shares, making, with the increase of the act of 1845, a capital of
$4,000,000.

The receipts of all kinds, in 1847, were, - - $1,325,336 06

Expenses were, .... 676,689 75

Net earnings, ..... $648,546 31

Of this was applied to balance of interest, $264,854 52
Two dividends, each four per cent., 302,000 OQ

, 566,854 52

Surplus to contingent fund, .... $81,791 78

Surplus of last year, .... 104,011 99

Total contingent fund, carried to 1848, . - . $185,803 77

It will be observed, that the above does not make any provision for the
payment of $50,000 to the Sinking Fund for 1847. These payments
were made from proceeds of new stock, as authorized by the act of April
24, 1847, above mentioned.

Monthly statistics of business are not given in the Report, and no com-
parison can be made with the eleven months of the previous year. The
gross receipts of twelve months in 1846, as given in a note to the Report
for 1846, were $954,417 89. The gross receipts of 1847 exceeded those
of 1845 by over sixty per cent., and the expenses of 1847 were over
eighty per cent, above those of 1845. The Report states, that consider-
able sums were charged to expenses for deterioration of rails, sleepers,
&c., of former years, as was $27,000 for new engines and cars. It rep-
resented that the increase of business for the year, compared with 1846,
was fifty-seven per cent, on freight, and twenty-one per cent, on passen-
gers ; average increase, forty-two per cent. The increase of expenses was
thirty-nine per cent.

94 HISTORICAL MEMOIR OP

During 1847, a movement was made by the citizens of Worcester, for
a change of the passenger depot of the Western Company, from Wash-
ington square, (where it was first located and now is,) to a connection
with the passenger depot of the Worcester Company near Main street. A
public meeting of citizens was held, resolutions adopted, and a large com-
mittee appointed, who presented a petition to the Directors March 14,
1847, asking for the change. . They had a hearing by the Board in April.
The memorial was referred to a committee, who reported against the
change, for the following reasons. 1. It would cost not much short of
$100,000. 2. It would lengthen the road about three-eights of a mile.
3 It would aflfect the Western unfavorably, in the division of receipts for
joint business with the Worcester Company. 4. It would substitute a
curved line of about six hundred feet radius, for one nearly straight. 5.
On account of the curve, and necessary switches, and increased distance,
the trains would be delayed, on an average, nearly fifteen minutes. The
Report was accepted unanimously, and a copy sent to the petitioners.

Whereupon the committee of citizens made an elaborate Report to
their constituents, at a meeting held August 28, 1847. (See Appen-
dix V.)

During 1847, twenty, ten-ton Engines, and one hundred freight cars
were added to the equipment; and twenty-eight, twenty ton Engines and
four hundred freight cars were ordered ; and about twelve miles of second
track were constructed. The Directors, in their Report for 1847, — dated
in January 1848, express a conviction, if the capital should be increased,
to an amount sufficient for the construction of "fifty miles of second track,
the ensuing year, the income had been such the past year, that stockhold-
ers would be quite sure of receiving eight per cent, on their shares." The
market price of the shares ruled during the year, from ninety-nine to one
hundred and fourteen and three-fourths per cent.

At the commencement of 1848, the Honorable Josiah Quincy, Jr., retired
from the Treasury-ship of the Company, after a successful and laborious
service of twelve years, from its organization. The Directors bore testi-
mony to the value of his services in a resolution, which was richly deser-
ved.*

Stephen Fairbanks Esq., of Boston was chosen Treasurer, and Ansel
Phelps Jr., of Springfield, was appointed Solicitor.

By act of the Legislature of May 9, 1848, the Company was
authorized further to increase their capital stock, by adding from
time to time, one million of dollars, to be sold not under par;
with a proviso,, that no branch railroad should be constructed, with-

* See Appendix W.

THE "WESTERN RAIIBOAD. 95

out consent of the Legislature, unless the location should be filed
within one year from the passage of the act, and the branch com-
pleted within two years.* The act provided, that the proceeds of the in-
creased shares should be appropriated to construction, and for engines
and cars, and to no other purpose; but that the Company should continue
payments to the sinking fund, as required by the act of 1839, and not
from proceeds of new stock. Such payments had been made to both
funds from proceeds of sales of stock or bonds, to the amount of $218,-
111 10; exceeding four years contribution to the funds.f "

During this year, thirty-two miles of second track were constructed,
and laid with a seventy pound rail, and four hundred frdgbt cars, and
twenty-five engines of twenty-three net tons, were added to the equip-
ment ; making a complement of seventy engines. In addition, a large
and commodious freight house was erected at Greenbush, — seven hund-
red and fifty-six feet by one hundred and thirty-three, costing, with land,
tracks, bridges &c., $115,000.

The gross earnings were .... $1,332,068 29
Exceeding those of 1847, by - - $6,732 23

The expenses were - - - - - 652,357 11

Exceeding those of 1847 by - - 24,332 64

The net earnings were .... $679,711 18

Applied to interest, and two four per cent, dividends-^

one upon $40,000 shares, the other upon $51,500, $632,380 77

Balance of income, .... $47,330 41

Of this eleven-twelfths of $50,000 to sinking funds re-
quired $45,533.34. This payment to the funds was not
actually made till January 1850, one year after due.
To the balance of 1848, add contingent fund of 1847, $185,803 77

Contingent fund carried to 1849, subject to the above

payment to the sinking fund, of $95,833.34, $233,134 18

In 1848, 11,500 shares were added to the capital

stock, making a total of - - - $5,150,000

In July of this year, the President reported to the Board in favor of
making a branch road from Charlton to Southbridge, and he was author-
ized to take measures therefor, and report to the Board. No action was
had under this authority, and it is now forbidden by law.

* By the charter, the Company had power to build branches, within limited distaa-
cea from the main road.
f See Report of January 1849, page 12.

96 HISTORICAL MEMOIR OF

In the same year, a new element of anxiety was introduced, by the
application to the Legislature, for the incorporation of " the Troy and
Greenfield Railroad Company," to construct a Railroad from Greenfield,
by way of Hoosac Mountain, to the State line, with a view to its exten-
sion to Troy in the State of New York. The favorite route of the Peti-
tioners involved a Tunnel of four and one-half miles through the Hoosac
Mountain. To this project, the Western Company presented a long and
able remonstrance. The majority of the Committee, having the subject
in charge, reported against the application. The minority made a report
with a bill in favor of the incorporation, which was passed.

It is not within the scope of this Memoir, to present the details of that
controversy, but the existence of it, and the part taken by the Western
Company, are properly due to an attempt at a continuous history of the
affairs of the Company.

On July 6, 1848, the resignation of James Barnes, as Superintendent,
was accepted to take eflfect August 1.

In 1849, no addition was made to the capital stock, or to the second
track. The construction account was not materially increased. But a
change was made in the items. By the Report of January 1843, the ag-
gregate net balances of receipts for the four preceding years, was sta-
ted at $349,440 70. Instead of a dividend from this sum, or carrying it to
the credit of a contingent account, for a future appropriation to deteriora-
tion, or dividends, the Board of 1842, at the close of that year, directed
the whole to be applied to the interest account, which was then about
$306,000, for interest which had accrued on the loans and floating debts,
during the past six years of the construction of the road. The principle,
afterwards generally practiced upon by other roads, — that, during con-
struction, interest should be charged to construction account, was not then-
fully recognized and settled.

The Report of January, 1850, considered this a diversion from income
to construction ; and placed the item to the credit of " Engineering and
other expenses," deducting $310,739 28 from locomotive account, and the
balance from merchandise car account, leaving the aggregate to the debit
of construction, as before.
The gross receipts of 1849 were - - $1,343,810 57

Exceeding those of 1848, by - - $11^742 28

The expenses were ... 588,322 58

Less than those of 1848, by - - 64,034 58

The net income— about $75,000 over 1848— 755,487 99

Vas applied to interest and two four per
cent, dividends, - - - 694,339 26

THE WESTERN RAILROAD. 97

Surplus — the payments to sinking fund, not

made, - - - $61,148 73

Eeported contingent fund, November 30, 1848, 233,134 18

Nominal amount of « 1849, $294,282 91

From which deduct loss on North Adams road, $3,427 52

-Ji amount due sinking fund, January, 1849, 45,833 34

One per cent, to " " 1850, 50,000 00

99,260 86
Balance of contingent fund carried to 1850, $195,022 05

Soon after the organization of the Board of Directors, in February,
1850, the accounts of the Cashier and Book-keeper, at the Springfield
office, were found to be in great confusion. After repeated examinations
by the Committee on Accounts, a deficiency in the cash account was dis-
closed, and the Cashier, Addison Ware, made an assignment, for the
benefit of the Company, of all his property, estimated by the Committee,
at from seventeen to twenty thousand dollars. The Cashier admitted
that the books were correct, and that the cash balance was on hand, De-
cember 1, 1847 — and there has been no evidence that any defalcation
existed prior to that date. An experienced accountant was employed ;
and he confined his examinations to the transactions from that time to
May, 1850. He reported a deficiency of cash, amounting, to $68,354.98
— which was reduced to 851,524.04, by the sale of the proceeds of the
assigned property.

The Cashier received his appointment in August 1839, and he had,
from that time, been regarded by all the officers of every year, as one in
whom implicit confidence might be placed. (See Appendix X.)

On examination of the books of the Albany station, there was found
to be a deficiency, principally from neglect of prompt settlements, amount-
ing to $10,667.29.

' After this defalcation and this confusion of accounts was ascertained,
the office of Auditor of Accounts was established, and his duties pre-
scribed, viz., — the supervising the collecting department, and the auditing
of all the accounts ; including the books and accounts of the station
agents.

February 19, 1850, Henry Gray was appointed superintendent.

The receipts in 1850 were, (as corrected page

7, of Report,) - - - $1,366,252 74

Exceeding those in 1849, by - $22,442 17

The expenses were ... 607,549 36.

Exceeding those of 1849, by - 19,225 78

13

98 HISTORICAL MEMOIR OF

The balance of net income, allowing for the

loss of $10,667 29, at the Albany station,

was reported at - - - $761,964 32

This was applied to interest, two four per cent.

dividends, and $7,851 59, loss on North

Adams road, - - - 756,708 92

Balance to contingent fund, - - $5,255 40

Add fund at close of 1849, - - 195,022 05

$200,277 45

From which the Report deducts for losses now
ascertained, but applicable to several past
years,
Defalcation of cashier at Springfield, $51,524 04

Balance of errors and omissions in settling his

books, - - - 26,723 72«

$72,247 76

Amount to contingent fund for 1851, - - $122,029 69

The President of the Company, Mr. Addison Gilmore, died very sud-
denly towards the close of 1850 ; and John Gardner, Esq., one of the
Directors was chosen President pro tern.

In noticing this death, the Board, at the close of their annual report, say :
" His name has been identified with the principal railroad enterprises
lately commenced in New England ; while his close connection, for sev-
eral years, with the Western Railroad, shaping its policy, and, by his busi-
ness capacity and energy, doing so much to give the Corporation its
present position, has earned for him a high place in the confidence of this
community."

At the annual election in February, 1851, considerable changes in the
Board of Directors took place, and, at their organization, Capt. "William
H. Swift was chosen President.

At that stockholders' meeting, they appointed A. H. Bullock, William
Jackson, John Gardner, D. Wilder, Jr., and William Raymond Lee, a
Committee to examine the system of pecuniary accountability, in opera-
tion since December, 1847, — themethod of auditing accounts, — the collect-
ing and disbursing funds, with instructions, also, to examine and report
upon the value of all the property, and assets of the Corporation.

In March of that year, the greater part of the old passenger house at
Springfield was destroyed by fire. It had become inadequate to the wants
of the Road, and the loss was comparatively unimportant. In the course
of the season, it was replaced by one of brick, four hundred feet by one

THE WESTERN RAILROAD. 99

hundred and thirteen, with walls twenty-five feet high, with iron doors,
window frames, and sashes. It was planned and built under the immedi-
ate supervision of the President, with convenient sitting and refreshment
rooms. It contains suitable accommodations for the "Western, the Hart-
ford and New Haven, and the Connecticut Eiver Companies, for use of
which, the latter Companies pay a stipulated rent

Near the close of 1851, arrangements were made with the New York
and Harlem Bailroad Company, for doing the work of that Company be-
tween Albany and Chatham Four Corners, a distance of twenty-three
miles, thus making a continuous interior line between New York and
Albany, of one hundred and fifty-one miles. The Harlem Company fur-
nish their own cars ; the engines and train hands to be provided by the
Western Company, and their oflS.cers and agents to have the entire con-
trol and management of the trains between Chatham and Albany. The
trains commenced running through, January 19, 1852, and the opening
of this new avenue promised an important accession to the business of the
Western Company.

In January, 1851, the application of the Troy and Greenfield Railroad
Company was presented to the Legislature, for a loan of the credit of the
State for two millions of dollars, to be applied to the construction of a
itmnel<f{ four and one-half miles through the Hoosac Mountain. A bill
for this object passed the Senate, and was rejected in the House. The
Western Company did not appear as remonstrants.

The receipts of the Road in 1851 were - - $1,353,894 63

Less than in 1850, by - - $12,358 11

The expenses of 1851 were ... 597,756 20

Less than in 1850, by - - 9,793 16

The net earnings being - - - - 756,138 43

Were applied to interest, two four per cent.

dividends, sinking fund, and $5,449 68

for loss on the North Adams Road, - 750,046 61

Surplus carried to the contingent fund, - - 6,091 82

Which added to that fund of 18.50, - - 122,029 69

Total carried to contingent fund for 1852, - 128,12151

In closing their Report, the Directors say, they think there is ample
reason for the Stockholders to be satisfied with the general results of the
year's work.

At the Stockholders' meeting, February, 1852, the Committee appoint-
ed the previous year, on the subject of the system of accountability, and

100 HISTOEICAL MEMOIR OF

the value of the property of the Company, made an elaborate Report.
They gave a minute account of the organization, and operations of all the
departments, under the heads, — 1. The Treasurer's office at Boston. 2.
The office at Springfield and its organization. 3. Returns and collec-
tions of the passenger and freight traffic. 4. The Cashier's duties. 5.
The ticket system, and 6. The freight office, or freight clerks duties.

Under the order for the valuation of property they assume (except as
to rails,) " the original cost as stated in the books of the Company," " less
its depreciation, assuming a reasonable annual expenditure from the net
earnings thereafter sufficient to maintain it in a good serviceable con-
dition," and as to the rails, the cost of renewal at the then market price.

After a personal examination, the Committee give the results under
the heads, 1. Of graduation and masonry. 2. Wooden bridges. 3. Su-
perstructure, including iron, frogs, chairs, spikes, and cross-ties. 4. Land
and fences. 5. Station buildings and fixtures. 6. Locomotives. 7.
Passenger and baggage cars. 8. Merchandise cars. 9. Ferry-boat and
wharf property at Greenbush. 10. Sinking funds. The details of this
document, though practically of great importance, as developing, and
tending to improve, a valuable system of operations and responsibilities,
are too voluminous to be given here, even in a condensed abstract. A
few important facts and principles will be stated, and reference for an
abstract of the document made to Appendix X.

At the Treasurer's office in Boston, the stock transactions, the transfers,
and issuing certificates are had, and dividends and bond interest paid.
Funds, the proceeds of business, are deposited to his credit, with few ex-
ceptions ; and at the close of the year, a return is made from the Spring-
field office, giving a statement of the year's business. In connection with
the State Treasurer, the Treasurer of the Company has charge of the
Massachusetts Sinking Fund.

The Committee recommended, that the Treasurer's office should be kept
at Springfield ; but the Directors, after referring the matter to a Commit-
tee of the Board, decided otherwise.

At the Springfield office, " the Superintendent, under the authority of
the President, has the entire supervision of the operations of the office."
Under him are — a Cashier, a Pay Clerk, a General Freight Clerk, a
General Ticket Clerk, with under Clerks.

As to the value of the property, the Committee estimated the deprecia-
tion of the road and equipment, as follows :
Wooden bridges, - - - $11,267 00

Rails, - - - 165,400 00

Stations and fixtures, - - 18,100 00

Amount carried forward, - - $194,767 00

THE WESTERN RAIIEOAD. 101

Amount brought forward, - $194,767 00

Fences, - - - 12,160 00

Merchandise cars, - - - 48,704 34

$255,631 34
Less increased value of locomotives, - - 39,100 00

Total depreciation, - - - $216,581 34

The whole cost of the Road and equipment, Dec. 1, 1851, *9,953,758 84
Gives value of do., as estimated by the Committee, Feb.

11, 1852, .... $9,737,227 50

Connected with this Report, was a letter from the President, Captain
William H. Swift, containing detailed computations, with elaborate tables,
in reference to the expenses of operating the Road, of its repairs, and the
deterioration of the roadway and equipment. An abstract will be found
in Appendix X.

For the views of the Committee on the Sinking Funds, reference is
made to the continuous narrative respecting those funds, given hereafter.
The Committee, however, say, taking the funds as they were December
1, 1851, at $1,018,506.75, and computing interest thereon at six per cent,
per annum, and adding $50,000 annually from the income of business,
the funds will amount, on the first day of January, 1870, to $4,452,424.
The receipts of 1852 were - . $1,339,873 09

Less than in 1851 by - - $14,021 54

The expenses of 1852 were - - 656,678 17

Exceeding the expenses of 1851 by 58,921 97

The net earnings in 1852 were, - - $683,194 92

These were applied to interest, two dividends
of six and one-half per cent., the Sink-
ing Funds, and $4,691 78 to loss on the
North Adams Road, - - 673,902 48

Balance for contingent fund, - - - $9,29194

Add amount of fund last year, - . 128,121 51

Contingent fund carried forward 1853, - . $137,413 45

The diminution of receipts was, in the freight department, $29,300 ;

there being a gain on passengers of $12,274.

The causes of this diminution of receipts, and increase of expenses, are

stated by the annual report to be : — 1. An excessive competition for the

Western business, on the south, by way of the Erie Railroad, and the

* Notwithstanding this reduced appraisal by the Committee, this old item (from the
books) has been since carried forward, as the cost of the Road and equipment, in sub-
sequent reports.

1 02 HISTORICAL MEMOIR OF

Sound ; and, on the north, by three lines, the Vermont Central and
Ogdensburgh, the Rutland and Burlington, and the Rutland and Schenec-
tady ; all circuitous routes, but all competing with the Western for the same
business, at rates not only unremunerative, but ruinous. On this account,
an express passenger train was run between Springfield and Albany, and
the rates of freight were reduced, as compared with former years. Thus
"more work was done in 1852 than in 1851, and less money received for
it." This increased the expenses, and hence a reduced net income.

The Report says, the renewals of rails, sleepers, bridges, &o., were fully
equal to the deterioration for the year. One first class passenger engine
and eight freight cars, built in the shops of the Company at Springfield,
were added to the Road, and charged to expenses. To supply rails for
renewals, the old rails were re-manufactured, at twenty dollars per ton, in
preference to buying rails of an inferior quality from Wales, at four
pounds sterling per ton. And this is stated as the established policy of
the Company.

In referring to the cost of doing the work in the traffic department, the
Directors cite from the computation annexed to the Report of the Com-
mittee of Investigation, and say, that, taking eight of the principal Roads
in New England, it appears from official returns, for five consecutive years,
that the transportation of passengers and freight cost 1 i*i,Vu cents per pas-
senger, or per ton of freight, per mile, or nearly 1^ cents. This is exclu-
sive of interest on capital employed.

To show the success of the system of establishing and administering
the Auditor's office, it is worthy of note, that at the close of the business
year, the uncollected freight bills were only about $1,000, in a freight
business of $685,062.85, through all the stations on the Road.

In this year the " Contract of 1846 " with the Worcester Company,
was further renewed, but only by a concession of the twelve cents extra,
for certain freight before allowed to the Western— ^the renewal to extend
to June 1, 1856, or until six months' notice given for its termination, after
that date.

At the session of the Legislature, in January, 1853, the application of
the Troy and Greenfield Railroad Company, for a grant of aid from the
State, in construction of the Hoosac Tunnel was renewed — and the
Western Company presented a remonstrance. A long and laborious
hearing was had before a Committee. But the grant was not made.

The gross receipts in 1853 were - - $1,525,223 92

Exceeding those of 1852, by - - $185,350 83

The expenses of 1853 were - - 778,487 92

Exceeeding those of 1852, by - - 121,809 75

THE "WESTERN EAILROAD. 103

The net earnings were ... $746,736 00

Applied to interest, seven per cent., in two div-
idends — to sinking funds and $741 19
loss on North Adams Road, - - 695,259 81

Surplus carried to contingent fund, - - $51,476 19

Add fund of 1852, - - - 137,413 45

Contingent fund carried forward to 1854, $188,889 64

During the year, ten new merchandise cars were added to the equip-
ment, and charged to expenses.

The comparative cost of the work in 1852 and 1858, is stated thus :
In 1852 it cost for each passenger or each ton of freight carried one mile,
1 iVo^ cents. In 1853, 1 ,-^j^ cents per mile.

A conditional guaranty of three and a half per cent, semi-annually for
twenty years, on $50,000 of the stock of the North Brookfield and Barre
Railroad, was voted by the Western Company, provided the "Worcester
Company would guarantee the same amount for the same time. The
guaranty was given by that Company ; but the road has not been made.

On the organization of the Board of Directors in 1854, Captain Wil-
liam H. Swift having declined further to serve as President, Chester W.
Chapin, Esq. of Springfield, was elected to that office.
The receipts of 1854 were - - - $1,763,944 26

Exceeding those of 1853, by - $238,720 34

The expenses of 1854 were - - - 1,045,241 19

Exceeding those of 1853, by - 266,753, 27

The net receipts were, - - $718,703 07

These were applied to interest, seven per cent.

dividends, sinking funds, and $1,480 to

loss on North Adams Road, making - $699,426 84

Surplus carried to contingent fund - - 19,276 23

Add balance of do. last year, - - - 188,889 64

$208,165 87
Less amount paid the Worcester Company, on

settlement, - - - 23,242 46

Total carried forward to 1855, - - $184,923 41

In the Report, the Board say, that, in addition to the large amounts for

renewals, new cars, &c., charged to expenses, " there has been expended

for bridges, cars, locomotives, iron, &c., $189,735.39,* which stands

*Thia was disposed of in 1855.

104 HISTORICAL MEMOIR OF

charged to Extraordinary Renewals and Equipment " — a little exceed-
ing the above contingent fund.

It will be noticed, that there was the very large sum of $238,720.34,
increased receipts, over 1853 — but there was the larger amount of
$266,753.27, of increased expenses, in addition to the above item of
$189,735.39, charged to extraordinary renewals, &c.

The Report states the comparative cost of doing the business, as fol-
lows — ^for carrying one passenger and each ton of freight one mile, in
1854, 1 iVaS cents against 1 jVimj cents in 1853. The larger amount of
business done, and increased gross receipts, would of course involve
increased expenses. But very much was, doubtless, owing to the
necessity of doing the business over a single track, west of Springfield ;
and to the fact, that much of the iron of that track had been in use for
ten or twelve years, and the necessary renewals made, were very large.
The passenger trains, having the preference of the road, caused great
delays in the freight trains. With the addition of the Harlem business,
there were, daily, from twenty-five to thirty trains over the road, in both
directions, between Albany and Chatham ; causing great derangement of
the freight trains.

In 1853, the Western Company had contracted with the Worcester, to
furnish all the cars for the joint business, which required large additions
to the stock in 1854. Two new locomotives, ten freight, and two passen-
ger cars were added ; in addition to twenty new freight cars, for that
number broken up.

In 1854, the Troy and Greenfield Company renewed their application
to the Legislature for aid, and a grant of State scrip, for two millions of
dollars was made, to enable them to construct the Hoosac Tunnel. To
this grant conditions were annexed, involving the Company in contro-
versies, which are not yet terminated.

The Report of the Directors, of January, 1855, calls the attention of
the stockholders, to the importance of laying a double track upon the one
hundred and twelve miles of road not thus provided. The Board say, " that
less than $10,000 per mile will complete the work," and that true econ-
omy, and the just demands of the public require, that the second track
be commenced, as soon as the necessary means can be provided ; and the
work should be prosecuted as rapidly, as might be consistent with the
payment of regular dividends.

We have before stated* that some portions of the independent Albany
line between Chatham and the State boundary, were, by contract with
the Hudson and Berkshire Company, located upon the lands of that

* Page 53.

THE ■WBSTBElJ RAILROAD. 106

Company and that they had refused to release them, as- by^ inden-
ture, they had covenanted to do. In this year, (1854) the em-
barrassments of that Company culminated, by their inability to pay*
either principal or interest on their mortgages to the State of New York.
On November 24, 1854, the Controller of the State sold the road, fran-
chises, and property of the Company, at auction, and they were pur-
chased in behalf of the "Western Company. The road is about seven-
teen miles long, between Hudson and Chatham Four Corners, and about
fifteen miles, thence to the State Line. The rolling stocky lands at
Chatham and Bichmond, and the wharf property, at the Hudson terminus,
were owned by individuals, and were purchased separately. The entire
purchases cost $273,131 18. The part of the road between Hudson and
Chatham, was believed, and has since' Jitoted to be, an important auxil^
iary to the "Western, in the transportation of ' coal) iron, and other heavy
material^as the navigation of the rivfer-is more reliable, at and below
Hudson, than between there and Albany. 'This section' of the road is
operated in connection with the Western, and with their rolling stock,-
and iu' the name of *< The Hudson and Boston BailrOad Company." The
receipts and expenses of this branch are merged in' the gferieral' accounts
of the "Western Boad: The part of 4he Hudson Eoad between Chatham
and State Line is discontinued, and the materials and land are from time
to time sold for the benefit of the "Western Cbmjiany^i-the Albany Boad
having now a double track through' its whole leiigth. ■

On application to the Legislature of Massachusetts, in January, 1855,
an act was passed,* May 21, 1855, authorizing the issue of Bonds by the
Company, not exceeding $1,500,000, to be expressed in United States, or,
in Sterling currency, with power to secure the same by mortgage of the
road and its' equipment ; the bonds to be of such denominations, payable
at su(^ time, or times^ and bearing such rate of interest,' and to be nego-
tiated on such terms, as the Directors should determine. •

The gross receipts for 1855 were, of the

"Western Boad, - -' $1,858,861 75

Of the Hudson and Bostotai ■ - 10,811 30

$1,869,673 05

Exceeding those 6f 1854, by - $105,728 74

The expenses were; - - 1,236,659 74

Exceeding those of 1854, - 191,418 55

* Subsequently to the location of a part of the Albany Road on the lands of the
Hudson Company; that Company made a second mortgage to the State for a new loan.
14

106 HISTORICAL MEMOIR OF

The net income of 1855 was - $633,013 31

Add balances of contingent fund last year, 184,923 41

$817,936 72
Applicable to interest, sinking funds, seven
per cent, dividends, and $1,388 61 loss
on North Adams Eoad, - - 709,749 09

Balance carried forward to contingent fnnd

of 1856, - - - $108,187 63

The suspended item of $189,735 39 in 1854, for « extraordinary re-
newals and equipment," was this year disposed of, by charging $179,125
to construction account,^ being the cost of one hundred sixty-five new
freight cars, and eight new engines. The balance was charged to ex-
penses. The necessary renewals of superstructure, which operated in
1854 to increase the expense account, operated more largely in 1855.
More than fifty miles of track were renewed, the new superstructure of
the bridge across the Connecticut river was completed, and, within the
two years, twelve first class engines, one hundred eighty-five freight cars,
and six passenger cars, were added to the equipment, and all except the
$179,125 above, was charged to expenses, besides rebuilding cars render-
ed useless by accident, or long service.

The Eeport states the comparative rates of cost of the work, as for
each passenger or each ton of freight carried one mUe, 1 iViAi cents against
1 iWii cents in 1854, or reckoning one ton of freight equal to two pas-
sengers, it was in 1855 for each passenger one nule, 1 j^ft^ cents for each
ton of freight 2 ',^5^11 cents.

Under the authority to issue the bonds of the Company, the Directors
borrowed in London, £100,000 sterling, (at $4.80,) four hundred and
eighty thousand dollars, — and twenty-five thousand dollars were negotiated
in this country, to be applied to additional equipment, and the purchase
of the Hudson and Berkshire Eoad. No addition was made to the
second track, on account of the state of the money market.

At a meeting of the Board, December 27, 1854, the President made a
communication, stating that the feverish condition of the money market
during the year, had prevented the sale of bonds at satisfactory prices, for
meeting the expenses of the double track ; and representing the urgent
necessity for that improvement, as an economical measure, for the largely
increasing business of the Company.

Under these circumstances the President proposed, that a loan be made
from the securities and assets of the sinking fund, by an investment of
part of the fund in those bonds, adequate to the cost of the double track,

THE •WESTERN RAILEOAD. 107

with the mortgage security of the Boad and their appurtenances. This
communication was submitted to the stockholders at the meeting, Feb-
ruary, 1855. A letter of the Hon. William Jackson was submitted on
the same subject. Whereupon, Francis B. Hayes, J. Ingersoll Bowditch,
and J. J. Dixwell, were appointed a Committee, to whom those communi-
cations were referred, with instructions, '' to consider and report on the
means of obtaining the necessary funds for constructing a second track
from Springfield to Albany, either by the application to that object, with
the consent of the Legislature, of the whole, or a part of the sinking fund,
or in such other manner as the Committee should judge expedient ; and
also to examine and report upon the present condition of the sinking fund,
and to inquire whether any change is desirable in its present investment,
or future management" At an adjournment of the annual meeting of
stockholders held on the 7th day of March, 1855, that Committee made a
detailed Eeport.

The Committee say the Commonwealth and the City of Albany issued
their scrip for the benefit of the Boad ; and the holders, in this country,
and in Europe, received it on the pledge of the establishment of a sinking
fund for its redemption, and the Boads and property were mortgaged for
the security. From 1838 to the date of the Eeport, by many acts of the
Legislature, and of the stockholders, the fund had been recognized as a
sacred deposit, for payment of the bonds. They say, that " in the estab-
lishment of the sinking fimd and in the negotiation of the bonds (or scrip,)
there was a CGmpa,ct between the Company, the State, and the bondhold-
ers, and that the sinking fund should be kept inviolate, for the future pur-
chase or final redemption of the scrip ; and that it cannot be used for any
other purpose, except with the consent of all parties to the compact."

The Committee name two other means to raise the requisite funds, — one
by bonds of the Company, the other by the issue of shares ; and they add,
that there will be little difficulty by sale of bonds, at five or six per cent.,
or stock at par — the amount to be limited to one million. But they rec-
ommend, that this should not be done, so as to hazard regular dividends ;
and that no work be done, unless the money is procured to meet the ex-
penses as it progresses.

The Committee think a second track necessary for the safe and economi-
cal performance of the business of the Company, and that, with the bridges,
culverts, and masonry originally constructed for a double track, they think
$10,000 per mile sufficient, and that the expenditure will rather increase,
than diminish, the ability to pay dividends.

In reference to the sinking funds, the Committee find them both safely
invested, and in the hands of gentlemen of proved integrity and known
ability, who deserve the confidence of the stockholders. A statement of

108 HISTOEIOAL MEMOIR OF

the resulteof their examinatjoji of the funds will be given jn another place.

The CoQi(nittee, ho}n;ev;er, recommended to thetfitockholdera to appoint
annually, one of their number of akill and experience,. to superviae the
condition of the fund, and aid and advise the Commissioners in their in-
vestments, and to report annually to the stockholders., The Report was
accepted, and it was

Resolved unanimously, "that, in view of the rights and ipterests of the
bondholders, and, other parties in interest, it> is inexpedient that any part
of the sinking, fund should bediveited.from its original purpose."

,J. IngersoU Bowditch was appointed Supervisor of the Funds. The
Directors were authorized, to increase the capital by issue of new shares,
and to issue bonds of, the Company at interest not exceeding six per cent,
payable, semi-annually, not to exceed in the aggregate — of shares and
bonds — $1,000,000; to be appropriated to the, completion of the second
track, and to payment for the purchase of the Hudson and Berkshire
Road, and other construction and equipment purposes; neither to be sold
under par.

, . An act of the Massachusetts Legislature, dated May 15, 1855^ author-
i^d the Western, the Albany and the Hudson and Boston Compapies to
be consolidated into one Company by the name of the Boston and Albany
Radlroad, Company, at such times and on such terms as they might mu-
tually agree upon.

The "Contract of 1846," modified upon several renewals, with conces-
. sions by the Western Company, continued the guide of the clerks of the
two .Companies, in dividing the joint receipts, ,withou» any question as to
.the accuracy of its construction ; until in 1855, the officers of the Western,
upon examination of the subject, claiqied that, there was a misconstruction
of the terms of that contract and its modifications on renewals, by which
a much larger share jof the joint receipts had been, since 1846,:allowed to
the .Worcester Company, than they. were, justly. entitled to. As it was
originally a favorite arrangement of Mr.; Grilmore^ made and agreed to by
hint, and subsequent administered under his supervision, until his death,
no, suspicion was entertained by his associates or successors, that there was
any error in its practical administration. The officers of the Worcester
Company denied that there was any such error, and refused to change the
rule of division. , This produced a renewal of the old controversy, for
particulars of which we refer to another part of this Memoir.

On, April 9, .1 85 6, the Legislature of New York incorporated " the Hud-
son River Bijidge Company at Albany," " for the purpose of erecting and
maintaining a bridge,, for the purposes of raiJroadc travel and transporta-
tion across the Hudson Riyer," — the location to be fixed by commis^onera
named in the act,— with a capital of $500,000, in shares of $100 each, but

THE WESTBRK RAILROAD. 109

not exceeding the cost of the bridge and appurtenances. The elevation
of the bridge and the width of draw are prescribed, with a provision that
it shall cause no substantial impediment or obstruction to the navigation
of the river. The act provides that any Eailroad. Company may sub-
scribe to the capital, and any such Company with a terminus at Albany,
OF East Albany, may use the 'bridge on terms agreed upon, — or if not
agreed> the New York Canal Board may fix them. The Western Com-
pany, in the name of the Albany and West StockbHdge Company, sub-
scribed 1,008 shares, and the balance was taken by the New York Central
and the Hudson River Companies, and sundry individuals. Five dollars
per share was paid in, the Company organized, the location agreed upon,
and measures were taken to complete the bridge in 1857.

The business of the Western Company in 1856, was very prosperous,
and much exceeding that of any former year.

The receipts, including a surplus of
$2,162 41, on the North Adams

Eoad, were - - - $2,117,982 46

Exceeding those of 1855, by - $248,309 41

The expenses and renewals were - - 1,228,219 46

Less than in 1855, by - - 8,440 28

The net income was - ' - - 889,763 00

And was applied to interest, sinking fund,

and seven and a half per cent, dividend, 742,209 29

Balance to contingent fund, - - $147,553 71

Add balance of fund, November, 1855, - 108,187 63

Amount of fund carried forward to 1857, - $255,74134

The policy of relaying the superstructure of the old track, at a large
expenditure, during the two or three past years, was shown in the fact,
that, with increased traffic, the expenses were not thereby increased.
The comparison of the cost of the two years" work, was that in 1855, for
each passenger, and each ton of freight, it cost 1 iViAi cents, iand in 1856

1 AVo cents, or calling one ton of freight equal to two passengers, it
was in 1856, for each passenger one mile, 1 iVi^o> and each ton of freight

2 iVo% cents ; in 1855 for each passenger one mile, 1 iVA> and each ton
of freight, 2 {Wbf

The Directors congratulated the Stockholders on the prosperous con-
dition of the Company, and say : " the ability to make in future four per
cent, semi-annual dividends, should be regarded as beyond any probable
contingency." They ordered the construction of twenty to twenty-five
miles of second track in 1857.

110 HISTORICAL MEMOIR OF

During the years 1856 and 1857 twenty-nine miles of second track were
laid down on the Albany and West Stockbridge Eoad, thus providing a
second track throughout the whole of that Boad, and making seventy-
three miles on the whole line.

For the Hudson River Bridge, an Engineer was appointed, plans and
estimates were prepared, proposals for the work of the superstructure
made and accepted, when a temporary injunction from the United States'
Court suspended proceedings.

The Receipts of 1857 were - - $1,910,342 48

Less than those of 1856 by - $207,639 98

(but in excess of those of 1855, by about $40,000.)
The expenses and renewals of 1857, were - $1,084,118 55

Less than in 1856 by - 144,100 91

The net receipts were ... 826,223 93

Applied to interest, sinking fund, eight per
cent, dividends, $1,918,43, to loss on
North Adams Road, - . 777,045 12

Surplus carried to contingent fund, - . $49,178 81

Add contingent fund of November, 1856, - 255,741 34

Total carried forward to 1858, - . $304,920 15

The decrease of the income was principally $200,603 on freight,

The revulsion in business was sudden and very severe and wide-spread

in 1857.

Comparatively, the cost of each passenger and each ton of freight one
mile was, in 1857, liViMr cents, and in 1856, 1-fWir cents, or assumimg
two passengers equal to one ton of freight, it cost in 1857, IViftiV cents per
mile for each passenger, and in 1856, l-iViftr cents, and in 1857, for each
ton of freight, 2-^^ .cents, and in 1856, 2xWs cents. The suspension
of business was too sudden, to afiford an opportunity to graduate the ex-
penses to the reduced business.

The depression and derangement of business of the country continued,
with much severity through most of the succeeding year, 1858. Notwith-
standing this, all the important interests of the Company were provided for,
and the dividends of eight per cent, were made, without encroaching upon
the contingent fund, and thirteen miles of the second track were laid
down.

The receipts of 1858 were - - $1,700,293 60

Less than in 1857 by - $210,048 88

The expenses and renewals were - - 890,930 40

THE ■WESTERN RAILEOAD. Ill

Less than in 1857 by - $193,188 15

The net income was - - - $890,363 20

Applied as usual to interest, sinking fund, eight

per cent, dividends, and $4,093 82 loss on

North Adams Eoad, - - 808,536 02

Surplus to contingent fund, ... $827 18

Add do. of 1857, .... 304,920 15

Total carried forward to 1859, - . $305,747 33

The diminution "bf receipts and expenses were nearly of the same
amount.

The comparative cost of each passenger and each ton of freight per mile,
in 1858, was liViAr cents, and in 1857, iTTmr cents, or calling two passen.
gers equal to one ton of freight it was in 1858 for each passenger one mile,
iWo cents, and ItVVtt cents per ton of freight against in 1857, each pas-
senger 1 x \W cents and 2/-uV°ir cents for each ton of freight.

At the close of 1859 the Directors in the report say, "The roadway,
engines, and cars were never in better condition than they now are,'' and
"every material interest of the Corporation is in the most prosperous con.
dition."
The receipts of 1859 were - - $1,767,068 13

Exceeding those of 1858 by . $66, 774 53

Th© expenses and renewals were ... 936,920 12

Exceeding those of 1858 by - 45,989 72

Of this, $33,000 was for new cars and engines to cover depreciation.
The net income was - - "- . $830,148 01

Applied to interest, sinking funds, eight per
cent, dividend, and $1,872.36 loss on North
Adams Eoad, .... 814,051 39

Surplus for the year to contingent fund, • - $16,096 62

Add amount of that fund November, 1858, - 305,747 33

Contingent fund carried to 1860, ... $321,843 95

The comparative cost of transportation was as follows : for each passen-
ger and each ton of freight one mile 1t%\ cents, against 1-]%V cents in
1858, or assuming two passengers equal to one ton of freight, the cost in
1859 per passenger was l-ri^ cents, and 2-fgVa' cents per ton of freight,
against tWV cents per passenger, and I-iWb- cents per ton of freight per
mile in 1858. About twelve miles of second track were laid down in 1859 ;
making, in all, about ninety-eight miles of double track.

112 HISTOEICAL MEMOIR OF

The receipts of 1860 were - - - $1,881,350 72
In excess of those of 1859 by - $114,282 59

The expenses and renewals were - - 993,096 39

Exceeding those of 1859 by - 56,176 18

The net income was - - - - $888,254 42

Applied- to interest, sinking funds and eight per

cent, dividends, - - - 810,223 24

Surplus carried to contingent fund, - - $78,031 18

Add balance of do. last year, - - 321,843 95

Gain from North Adams Eoad, - . - - 769 20

Total contingent fund carried to 1861, - - $400,644 33

The comparative cost of each passenger and each ton of freight one liiile
was, in 1861, 1-iVo^ cents, in 1859, l /oVo <iG^is ; dr if two passengers
equal one ton of freight, it was per passenger in 1860, xinnr Cents, and per
ton of freight IxVA cents, against' in 1859 per passenger ly-J-Jr cents,
and per ton of freight 2t^^ cents. The Directors say they deferred Con-
tinuing the second track, on account of the difficulties with the Worcester
Company.

On July 5, 1861,- a serious fire at East Alban^ consumed att the staition
buildings, one of the bridges leading to the island on which they stood,
and sixty-seven freight cars. The total loss, exclusive of freight car's, was
estimated at $113,143 76. Of this, $92,127 57 was charged to expense
account for the yeai*, and the balance left to be so charged in 1862.

The re-building was commenced at once, and was nearly completed at
the close of the year. Sixty new freight cars were also added to the stock.
! About eleven miles of second track were laid down, leaving leSs than
forty-eight miles to complete the double track between Worcester' and
Albany.
The Receipts of 1861 wese ... $1,894,567 96

Exceeding those of 1860 by only . $13,217 24

The expenses and renewals were . - 1,081,571 17

Including $92,127 75 for the Albany fire.
The whole exceeding expenses of 1861 by 88,474 87" ' . .. . ! ■■
The net balance of income was ... $812,996 79
Applied to interest, sinking fimds, and eight

per cent, dividend, ... 800,952 43

Surplus carried io contingent fund, - - 12,044 36

Add that fund November 30y 1860, . . 400,644 33

Amount carried forward, - - . $412,688 69

THE WESTERN EAILROAD. 113

Amount brought forward, ... $412,688 69

Less loss on North Adams Boad, - - 7,939 81

Contingent fund carried to 1862, - - $404,748 88

The comparative cost of transportation was as follows — for each pas-
senger and each ton of freight, one mile in 1861, 1 -jVlft- cents, in 1860,
1 "1^^ cents — or assuming two passengers equal to one ton of freight, it
was each passenger per mile in 1861, -jVA cents, and each ton of freight
1 -AVtt cents, against in 1860, per passenger, iWir cents, and per ton of
freight 1 tWs" cents.

In 1862, the receipts were, - - $2,095,922 50

Exceeding those of 1861 by, $201,354 54

The expenses and renewals were, - - 1,111,358 20

Exceeding those of 1861, by - 29,787 03

The net balance of income was, - - 984,564 30

Which was applied to interest, sinking funds,

eight per cent, dividends — $6,371 13 for

excise tax on dividends, and $3,323 34.

Loss on North Adams Koad,* - - 836,138 58

Surplus earnings to contingent fund, - - 148,425 72

•Add amount of fund November 30, 1861, - - 404,748 88

Total contingent fund November 30, 1862, $553,174 60

The comparative cost of transportation was — 1862, for each passenger
and each ton of freight carried one mile 1 iVifo cents against 1 f^^ cents
.in 1861 ; or calling one ton of freight equal to two passengers, the cost in
1862 was iWa cents per passenger, and 1 jWd cents per ton of freight
against in 1861, ^^^ cents per passenger and 1 ftVj, cents per ton of
freight, f The Injunction upon the building of the Hudson Eiver Bridge,
was, in June of this year, so far modified, that the preparations for the
structure are resumed, and in progress.

A little more than eight miles of second track was laid in 1862 ; leav-
ing less than forty miles, to complete the line from "Worcester to Albany.
This is between Springfield and the Washington summit.

* For a table of statistics of business of the Pittsfield and North Adams Road from
December 1, 1846, to December 1, 1862, see appendix, A. A.

f The statistics of the comparative cost of transportation for eight years are condens-
ed in a table in appendix, B. B.
15

114 mSTOEICAL MEMOIB

During the year the Boston Board of Trade, believing that the city of
Boston was suflfering in its business, in competition with New' York, in
consequence of the controversy between the Western and Worcester
Companies, and an alleged' excess of charges caused thereby, sought a
conference with the managers of the two companies, which resulted in a
reference; of the matters in dispute, to a Committee of that Board, who
made an award, and also an elaborate Report to the Board, both of which
are noticed hereafter.

ORIGIN AND HISTORY .

OP THE

CONTROVERSY BETWEEN THE WESTERN AND BOSTON
AND WORCESTER RAILROAD CORPORATIONS.

Upon the opening of the Western Raiboad to Springfield, the Directors
of the Western Company claimed of the Worcester, that for the joint
business — that passing over the whole or parts of both Roads — the West-
em should be favored in the division of receipts. The Worcester Compa-
ny was then charging $1.50 for passengers between Boston and Worcester.
The through fare between Boston and Springfield was fixed at $3.75
for the first six months, and divided $2.50 to the Western and $1.25 to
the Worcester Company ; the latter conceding one-sixth reduction of their
local fares to the Western. The tickets were sold at the local rates of
each Company, to guard against fraudulent evasions, and the twenty-five
cents for each passenger, paid over to the Western, by the Worcester
Company. No such arrangement was made as to freight. From April
1, 1840 to January 1, 1844, the through fare between Boston and Spring-
field was $3.00, of which the same as before, $1.25 was paid to the Wor-
cester, and $1.75 to the Western ; the latter Coinpany bearing the whole
reduction.

When the Road was opened through to Albany in 1842, and the ofiicers
of the Western Company had gained some experience of the operations
and expenses of this new business, they claimed that the Worcester
Company should transport the joint passengers and freight, at rates much
reduced below those charged by them for the past two or three years —
aaid below those charged by the Western for the same business — and this
for the following reasons :

1. That such was the manifest intention of the Legislature, by insert-

116 mSTORICAl MEMOIR OF

ing in the charter of the Worcester Company, a provision, that the Legis-
lature might authorize any other company to enter the Worcester Road,
paying for the right of using the same, such a rate of toll as the Legisla-
ture should prescribe.

2. That the making of the Western Railroad was, and always would
be, of vast advantage to the Worcester Company, bringing it business,
which it could not otherwise control, and affording means of transporting
passengers and merchandise, to I'egions inaccessible to the Worcester
Companv.

3. TEat the Western was a large wholesale customer, bringing passen-
gers and merchandise in masses, gathering them in retail from a great va-
riety of sources, for many of which there was an active competition to
divert it to other channels, and requiring vigilance, expetise and a great
effort to control it. That it takes passengers and merchandise from the
Worcester in masses, and delivers them in retail at their numerous points
of destination.

4. That it was much more difficult, hazardous and expensive, to operate
the Western than the Worcester Road, for the same business, — instancing
the high mountain grades of seventy-six to eighty-three feet per mile, an
expensive ferry and ferry boat to maintain at Albany — and the costly
bridge across the Connecticut River at Springfield, and the large cost of
constructing the Road.* The experience of 1842 and 1843, only con-
firmed the Directors of the Western Company, in the conviction that
their claim was a sound one. And in addition, they deemed it vitally im-
portant to them, that whatever was allowed to the Worcester Company,
for the business of the Western,, should be a fixed sum for each passenger,
and each ton of merchandise^ — leaving to the Western Company to fix
the aggregate amount for the two Roads, with liberty to raise or reduce the
charges as the business should require, not in any case varying the sum to
be paid to the Worcester Company.

That Company resisted all these claims, and on December 11, 1843,
the Western Directors made a formal demand upon the Worcester for
the proper allowance. The latter having, by their answer dated Janu-
ary 9, 1844, declined the proposition made to them, the Directors of the
Western Company applied by petition to the Legislature, then in session,
for relief.f While this petition was in hearing before a Committee, the
parties, on January 31, 1844, agreed that it should be referred to " Linus
Child of Southbridge, John M. Williams of Taunton, and Charles H.

* The Eeport of JaBuary, 1845, gives these reasons more in detail.

f See Tenth Report, January, 1844, for a review of the early history of this con-
troversy.

THE WESTERN RAILROAD. 117

Warren of New Bedford, with power to hear and determine all matters
brought before them, as fully as the Legislature could do, under the peti?
tion " — their award, or that of a major part of them, to be binding for
one year from January 1, 1844, and thereafter till the expiration of
three months from notice of dissatisfaction by either party to the other in
writing.

The hearing was had in the subsequent May, when the parties presented
their claims and propositions, and, after a full hearing, the arbitrators made
their award, dated May 21, 1844. They adopted as a general principle
that the Worcester Company should be paid all expenses they were sub-
jected to, in the transportation of freight to and from the Western Road ; and
that in estimating these expenses, all the freight carried on the Worcester
road, from whatever source derived, sliould bear its proportion of all freight
expenses on that Road, and in addition to the sum thus to be paid, as the
amount of actual expenses incurred in transporting the freight aforesaid,
the Worcester Company to have added, a. fair and reasonable profit upon
this portion of their business. In establishing a principle upon which this
amount of profit was to be determined, the arbitrators say, they have re-
gard —

1. ^ To what they deem to be the policy of the Commonwealth, as
established by its legislation, that the construction of new Railroads, to be
connected with previous Roads in use, is to be encouraged ; and that the
business brought to the old Road by the new, is to be regarded as stand-
ing on a different footing from that brought from other sources.

2. That the new Road deals with the old one as a large customer,
bringing business in large masses.

3. That to a certain extent the Western Road brings a new business
to the Worcester.

4. In some degree, they regard the pecuniary situation of the Western
Company, considered only so far, as it is for the interest of the Worcester,
that their customers should realize a profit from their operations, to induce
them to continue them.

They accordingly awarded, that for all freight brought from, or carried
to, the Western Road, the Worcester Company was entitled to receive
two and seven-eighths of a cent per ton for each mile transported on their
Road — this to include depot accommodations and loading and unloading —
each Company to supply motive power on its own Road, and each its pro-
portion of cars and attendants, accordirfg to the number of miles on each
Road each ton of freight is transported ; and each subject to all expenses,
and to assume all risks on its own Road. This sum was fixed in reference
to the then existing freight tariff agreed upon by the parties. And if the
Western Company increased the rates of freight passing over the Worces-

118 mSTOBICAL MEMOIB OF

ter to or from the Western, the latter to pay a corresponding per centum
of, increase to the Worcester.

As to Flour, the award assumed the cost of transporting it over the
Worcester Road at nine cents per barrel, over the whole Road — and it
required the Western to pay that sum for the whole, and in proportion
for parts of the Worcester Road. But if the Western fixed the rate,
Greenbush to Boston, at over thirty-six cents per barrel, the Worcester
Company to receive one-fourth part of the sum so fixed, over their whole
Road, and in proportion for parts of it.

As to Passengers, the arbitrators adopted the same principle as for
freight ; and awarded, that the Western Company pay to the Worcester
two and a half cents per mile, for each first class passenger, carried to or
brought from the Western Road, and two-thirds of the same sum for
second class. Emigrants to be considered as second class unless other-
wise agreed. They award that if the Worcester Company thereafter
should reduce the fare of first class passengers, to less than two and a half
cents per mile, or of second class to less than two-thirds that sum per mile,
the same deduction should be made from sums to be paid by the Western.
Motive power, attendants, and depot accommodation, to be supplied by
each as in the case of freight, and each subject to risks in the same manner.
Under this award the Western Company paid the Worcester $1 10 for
passengers and $1 26 per ton for merchandise passing the whole length
of the Worcester Road.

At the time of this award, the local passenger fare on the Worcester
Road was $1 50. Towards the close of the year, during which the
award was to operate, the Worcester Company reduced this to $1 25,
making it for the interest of joint passengers to buy separate tickets on each
Road ; thus destroying the evidence of their going from or to the West-
ern, by means of which the Western could claim the benefit of the award.
The Western Company then reduced the fare on all that class of passen-
gers twentyrfive cents each, and applied to the Worcester for a propor-
tional reduction upon two and a half cents per mile to be paid them under
the award. The latter declined the change ; and on January 15, 184:5,
gave notice to the Western of their intention to terminate the award, and
make a new proposition to the Western. Such a proposition was made
January 23, 1845, and delivered to a Committee of the Western Board
after their Directors had adjourned, and had instructed the Committee to
apply to the Legislature for relief.

This new proposition was so nearly allied to the principle of a division
pro rata per mile, and withal, was so complicated and uncertain, in its

*For a copy of this award see appendii, 0. C.

THE WESTERN RAILED AD. 119

proposed application to the business of the Roads, that it was declined by
the Committee of the "Western Company, and afterwards by the Board-

This new proposition varied from the former ones, in professing to give
each Company an equal profit per mile, on the joint business. That to
determine ^Ms profit, the expenses of each in doing its whole business for
the year, and the annual interest of each on the cost of its road and
appurtenances should be ascertained, and the passenger expenses, and
half the annual interest of each be divided by the number of passengers
carried one mile — and the merchandise expenses and half the interest,
be divided by the number of tons of freight carried by each one mile
and that "the difference between the results thus obtamed should be the
difference in the rate per mile " to be established on the two Boads, for
the joint business.*

The Directors of the Western Company objected to this rule, that it
prescribed a very uncertain and fluctuating standard, — ^varyiag from year
to year, according to the charges and expenses of each Company, whose
expense account had theretofore been — and might thereafter be, made up
on very different principles, — that each Company being interested in the
amount of expenses of the other, unavoidable disputes would arise in
determining them, and in applying the rules for making them up, and
that this would necessarily interrupt the harmony of intercourse, and em-
barrass the operations of business.f

In addition, the Western Directors objected that the principle disre-
garded the provisions of the Legislature, for favoring business carried by
a new road to the old, or trunk road, and all the reasons before set
forth, why the Western Boad should be favored. It also gave to the
Worcester Company the power to require a rate of charges, which might
be prohibitory on the joint business ; while their own local business would
give them a fair income without it.

The application to the Legislature by the Western Company, for re-
lief, and for an act prescribing the terms upon which the Worcester Com-
pany should transact the joint business, was made in January 1845. There-
upon, several hearings were had before a special joint committee, in which
the Managers of the Western Company urged that theLegislature should
themselves decide definitely the questions in issue between the parties.

But the Committee,! in view of the fact, that there were, or might be,
other Railroad Companies in the State, under similar embarrassments,

*Por a copy of this proposition, see Appendix, D. D.

f The reported expenses of the 'Worcester Company for 1844, were about $1.05 per
mile — ^those of the Western about 63 cents.
X Through Mr. J. H. Clifford, their Chairman.

120 HISTORICAL MEMOIR OP

reported against a specific remedy in the case before them ; but presented
a General law entitled " An Act to regulate the use of Railroads."*

This act provided, that no locomotive engine, or other motive power
should run on any Bailroad, constructed by authority of the Common-
wealth, except those owned and managed by the Company owning and
managing such Railroad, unless by consent of such Company. It required
every Railroad Corporation, at reasonable times, and for a reasonable
compensation, to draw over their road, the passengers, merchandise, and
cars of any other Railroad Corporation, which had been, or might be,
authorized by the Legislature, to enter with their Railroad upon, and to
unite the same with, and use, the Road of such Corporation, — and if such
Companies could not agree upon such compensation, the Supreme Court,
upon petition of either party, should appoint three Commissioners to fix
the same, — their award to be binding, until it is revised or altered by Com-
missioners so appointed — but no such revision should be had within one
year from the time of the award. The said Commissioners, upon the
application of either party are authorized to fix the times, at which the
cars shall be so drawn.

The Committee also reported a bill to supply, what was claimed to be a
defect in the "Western Railroad charter, giving to the Western Company,
a right to enter upon and use the Worcester Road, at or near the place of
the then and present junction of the roads in Worcester, paying such rate
of toll or compensation as the Legislature might from time to time pre-
Bcribe, or as might be fixed under any general law of the Commonwealth,
and complying with reasonable rules and regulations established by the
Worcester Company.f Both these bills were passed.

Although at the time of the grant of the earliest Railroad charters
in Massachusetts, from 1830 to 1833, the use of steam power on railroads
in England, was generally introduced with great success, yet the charters
granted by this State, following the tenor and recommendations of the
early reports to the Legislature, contemplated only the employment of the
ordinary motive power, then in use upon turnpikes and common roads,—
and that the Railroads should be used by the public with their own con-
veyances, — toll gates being erected and toll paid for all passengers and
merchandise. Hence the provision in the charters, that the Legislature
might authorize one Railroad to enter with their Railroad upon, and use,
another Railroad or any part thereof, paying such a rate of toll or com-
pensation, as the Legislature might prescribe, and complying with such
other rules and regulations as such other Road might establish. This

* Senate Document, No. 106, 1845.
f Senate Document, No. 105, 1845.

THE WESTERN KAILEOAD. 121

phraseology was used as a precedent in subsequent charters — even after
steam was designed as the only motive power — with an addition, how-
ever, in some later ones, of an alternative provision, that one corporation
might enter upon and use another Railroad, unless that other should con-
sent to draw over its Road, the cars of the corporation thus authorized to
enter upon and use it. How far the Company whose Road might thus be
entered upon and used, could establish " rules and regulations," forbidding
the use of steam power by the Company claiming to enter upon and use
their Road, seems not to have been decided. But it was so manifest, that
the use of one Railroad by two or more Companies, with the independent
steam power of each, involved so much danger, that it was not allowed
unless by consent, and under proper regulations. Hence the propriety of
prohibiting such independent use by the statute of 1845.

After the passage of the laws before recited, the Directors of the West-
ern Company made several attempts, without success, to arrange the con-
troversy, by negotiation and by arbitration, and in April 1845, they applied
to the* Supreme Court for the appointment of commissioners, to fix the
compensation to be paid to the Worcester Company for doing the joint
-business. To this application the Worcester Directors filed a long special
answer, alleging certain (controverted) facts, and denying the power of the
Legislature, and the rights claimed by the Western Company — thus laying
the foundation for a long and expensive litigation. Of course no further
proceedings could be had till this was terminated, or the Legislature should
give other relief. Towards the close of the year, however, various con-
ferences were held by the officers of the two Companies, suggesting new
or modified terms of compromise. On the failure of these, the friends
of bpth Companies, proposed a union or consolidation of the two Com-
panies into one corporation on terms to be agreed upon. The subject
being submitted to the Stockholders of each Company, they appointed
committees, who on full examination, made a joint report to each, unani-
mously recommending such union on terms and conditions particularly
specified. This report being submitted to a large meeting of the Stock-
holders of the Worcester Company, they voted to postpone the whole
subject indefinitely — virtually rejecting the idea of the union on any terms.

Among the negotiations near the close of this business year, — which
were conducted, principally, between the Presidents of the two Compa-
nies, — ^was one by which the Western Company proposed to the Worces-
ter, that a modified principle of equated distances, or lengths of the two
roads, should be recognized, upon which the divisions of the joint receipts
should be made. The first proposal was to assume the lengths of the
Western one hundred and seventy mUes, and of the Worcester forty, —
afterwards varied to one hundred and sixty for the Western, and forty
16

122 mSTOBICAL MEMOIR OP

for the Worcester. The President of the "Worcester Company at first
replied, proposing — if other questions were properly arranged, — to apply
the partial equation to the business west of the Connecticut river only,
calling the Western its actual length, one hundred and fifty-six miles, and
the Worcester forty, and claiming that the depot expenses should be
deducted before the division, and that the arrangement should take effect
as of January 1, 1846. The Western insisted that the depot expenses
should not be so deducted, and that the agreement should take effect upon
all the business, after the termination of the award in April, 1845. Sub-
sequently the President of the Worcester proposed apro rata division on
the actual lengths of the roads, on gross joint receipts — except on through
business, and upon that he would recommend equating the lengths of the
roads, as one hundred and sixty to forty. And, on the subject of deduct-
ing the depot and station expenses of each Company before division, he
proposed to waive that point, and to substitute a provision that each Com-
pany should deduct twelve and a half cents per ton, before division, and
divide the balance, as one hundred and sixty to forty. But the Wor-
cester Directors declined to abandon the charge for loading and station
expenses, in addition to conceding near ten per cent, in the length of their
Road,* and refused to make the arrangement retrospective — as of April
1845-!— as they said that " would he to adopt a rule for the business of the
last year, less favorable to us, (the Worcester Company,) than the award,
which has been uniformly considered as entirely unsatisfactory.''

At a meeting of the Directors of the Western Company, on February
10, 1846, the day before their term of office expired, the President made
a detailed report of these various negotiations, when a majority of them
insisted upon the retrospective provision, and upon the equation of the
lengths of the two Roads, in the division of receipts, as one hundred and
seventy to forty, and the whole matter was referred to the Board of 1846.

At the annual meeting, February 11, 1846, four of the old Directors,
Messrs. Bliss, Jackson, Pratt, and Austin, declined a re-election, and
Messrs. Addison Gilmore, Josiah Stickney, Stephen Fairbanks, John
Howard, and Jonathan Chapman were elected by the Stockholders, and
these with Messrs. Russell, Campbell, Dwight, and Howland, the State
Directors, formed the Board for the year.

* In a letter of the President of the ■Worcester Company, dated February 3, 1846,
he says, in reference to the charge for loading and station expenses, " This the Di-
rectors are unwilling, to give up, in addition to conceding the difference of near ten

per cent," in " the computation of our whole freight charge from forty-four miles

to forty," "that this amounts to considerable more than the loading, Ac, and the

Board were of opinion that this was making a suf&dent allowance for l^e difference
of expense in the working ef the two Boads.

THE ■WESTERN RAILROAD. 123

Immediately thereafter, the negotiations between the two Companies
were resumed, and they came to an understanding, 'which was embodied in
an agreement bearing date February] 17, 1846, — ever since known as
"the Contract of 1846."

Article 1. This oontaract jrovided, that, in consideration of the higher relative
cost of the Western Road, and expenses of transportation upon it, the "Western Com-
pany should receive a larger proportion of fare from joint passengers than a pro rata
per mile, viz., the through fare to be $5 00 — the pro rata being $1' 10 to the WoreeB-
ter, and $3-90 to the Western — the former should have $1 00, and the latter $4 00.
Second class passengers- two-thirds' the first class, and divided in the same propurticn*
— that the nrode of collecting the fares should be by sale of the tickets of each Road,
by the agents of each, at their local rates, the proceeds to be divided as above.

Art. 2. If found expedient to run a special through train at a reduced rate, the par-
ties £^ree to do so, and divide the fares in the same way, deducting ten cents from the
pro rdfet share of the Worcester, and giving it to the Western. Way passengers on
such trains to pay regular fares.

Art. 3. That the Western Company might charge joint passengers to and from
their way stations, higher rates, not exceeding three cents per mile, the Worcester to
receive $1 00 only for such, over their road, and in proportion for parts of it.

Art. 9. As to merchamdise, in consideration of the extraordinary expenses of the
Western in hoisting and lowering freight from, and into, the canal boats at Greenbush,
and of collecting freight in small parcels at many way stations, the expenses of loading
and unWding, and of clerk hire,, and other depot expenses, in management of the joint
business of each Company, should be set off against eaeh otter, including the said ex-
traordinary charge^ of the Western ; and the gross receipts of income should be divided
(as in the next article provided), instead of deducting said expenses of loading &c.,
before division as a charge on gross receipts, as before claimed by the Worcester
Company.

Art. 10, reads as follows — "In consideration of the high grades on a part of the
Western Road, and the consequent large amount of locomotive power required in pass-
ing them, and also of tl^ greater wear and hazard of injury to the cars, it is further
agreed, that the receipts from the transportation of all joint merchandise, shall be di-
vided between the two corporations' ^ro rata, according to the number of miles which
each parcel is transported, with this exception that after ascertaining the said pro rata
division; theire shall.be deducted from the proportion of the Boston and Worcester cor-
poration, an amount equal to twelve cents per ton, for every ton transported to or from
places west of Springfield, and the, said amount shall be added to the pro rata propor-
tion of the Western Road."

Art. 11. Allows the parties to vary the rates by special bargains.

Art. 12. In consideration of expenses of the Western, in supporting a ferry boat

* This applied the effect of the principle of equation of the Road, (forty instead of
forty-four miles for the Worcester) to the passenger fares, which, in the proposal of
Mr. Hale to the last Western Board, was confined to merchandise, — the deduction, of
ten cents from the $1 10 of the pro rata share of the Worcester, being nearly equal
to the deduction of four miles from the length of the Worcester Road, as the basis of
division, even assuming one hundred and fifty-six as the length of the Western.

124 HISTORICAI, MBMOIR OF

between Greenbush and Albany, the Worcester Company agreed to pay the 'WeBtern,

$2,000 per annum towards those expenses. This tontract to be in force three
years.*

It will be noticed, that in this and in the prior negotiations, certain
prominent principles claimed by the Western, in 1843 and 1844, and set
forth in their annual Report of 1845, are recognized and allowed by the
Worcester Company — such as the high grades and greater cost of the
Western, and the extra expenses at Greenbush, &c. The Western
abandoned the claim of a right to fix the maximum of charges upon the
Worcester Boad for the joint business.

Although the new Managers claimed great credit for perfecting this
arrangement, some of the old ones doubted whether the terms of it were
more beneficial to the Western Company, than those offered to them by
the President of the Worcester Company, at the close of the preced-
ing year. Under it, however, the business was conducted with harmony
between the two Companies, the mutual accounts being made up and ad-
justed from year to year, by the subordinate officers having charge of the
passenger and freight departments, without a suspicion that they had not
been governed by the terms of the contract. As practically administer-
ed, it was not easy to see, how far the division under the contract gave
to the Western much, if any, advantage over the rules adopted and prac-
ticed prior to February, 1846.

This contract of 1846, expired in February, 1849, when it was renew-
ed by Mr. Gilmore, for three years. But the provision in article twelve,
for payment by the Worcester to the Western, of $2,000 for ferry
expenses, was excluded — and the third article was altered as to the
amounts of passenger fares, still giving the Worcester Company one dol-
lar over the whole of their Road.f In November, 18fi3, there was another
renewal by Captain William H. Swift, the President, when the ninth and
tenth articles, relating to divisions of freight receipts, and extra allowance
of twelve cents per ton, for certain freight, were expunged ; and the foU
lowing substituted, viz., "The joint receipts for the transportation of
freight, shall be divided between the respective Companies, according to
the distance carried, without allowance to either Company, for depot
charges," this arrangement to continue in force till June 1, 1856, and
"until six months notice in writing be given by either party, to terminate
it, after that date."

From 1846 to 1855, the business intercourse of the two Companies
was continued with no material interruption, except such as was caused
by the changes in the renewals of the contract, in 1849 and 1853.

* The material parts of this " contract of 1846," will be found in the appendix E. E.
f See Appendix, E. E.

THE -WESTERN RAILROAD. 125

Towards the close of 1854, the oflScers of the two Companies were at vari-
ance, upon some minor points, in the practical application of the contract.
One in reference to the division of the receipts for the Boston and New
York passenger travel ; — a second, the division of receipts for freight be-
tween stations on the Pittsfield and North Adams Road, and stations on the
Worcestet Road — a third, the rule on the subject of damage or loss of
goods, or damages to cars. These questions were, on November 1, 1854,
referred to the decision of F. B. Crowninshield, Esq., his award to be
final. The award, dated May 12, 1855, decided, that the Boston and New
York passenger receipts should be divided fro rata per mile, or according
to the distance the passenger was carried on each road, — but the Wor-
cester Company not to receive over one dollar. 2. That the North Ad-
ams, &c., freight receipts should be divided according to the distance
carried by each Company. 3. Virtually, that each Company be respon-
sible for losses or damages on its own road — or if not ascertained, the
losses, »Sbc., to be borne in the proportions in which the freight money
thereon would have been divided, with provisions for examination of cars
passing from one road to the other.

In 1855, the officers of the Western Company represented, that upon
careful computations and examination, they unexpectedly discovered, that
the freight Clerks of the two Companies, had, ever since June, 1846,
misapprehended the meaning of the Contract of 1846, and had, in their
divisions of joint freight receipts, adopted a construction and rule, which
gave to the Worcester Company, a much greater share than they were
entitled to, by the fair construction of the instrument. It having been a
favorite arrangement of Mr. Gilmore, and administered under his direct
supervision, his successors had no reason to suspect any error in its appli-
cation to the business of the Roads. This led to protracted negotiations,
during which the Worcester Directors maintained that the divisions as
practiced, and by which the accounts were settled, were right. The
Western officers alleged that the error arose by the Clerks of both Com-
panies, instead of giving to each Company an equal sum per ton per mile
of the gross receipts, from joint freight, established a scale of decimals
for each station, and, in making up the accounts for each month, divided
*the amount received on each parcel of merchandise, to and from both
Roads, by these decimals, instead of dividing the gi-oss receipts pro rata
h/ one rule, thereby adopting as many divisions as there were stations on
each Road. They claimed that the Contract of 1846 provided that the
Western Company, for considerations named, should receive a higher rate
for merchandise, as stated in the twelve cents per ton clause ; and yet, by
the process adopted, to and from each station on each parcel, the Worces-
ter in fact received a higher rate than the Western, after paying the

126 HISTORICAL MEMOIR OF

twelve cents per ton to the Western; and that, to many stations on the
Western Road, the Worcester Company received more than its local rates
between Boston and Worcester.*

The two Companies not being able to harmonize in their views of the
construction of the existing contract, after protracted negotiations, the
Western Company on November 25, 1855, gave the notice to terminate
the contract on June 1, 1856 and the Directors appointed a committee to
agree upon and perfect a new contract prior to that date.

The only result arrived at, at that time, was an agreement to refer the
foregoing question of division as affecting the years of 1854 and 1855 —
and some other questions of less importance, to the arbitrament of F. B.
Crowninshield, Esq. His award was dated April 14, 1856. On the sub-
ject of the division of joint freight receipts, the award says the Western
Company " claims for an error in the mode of dividing the joint freight
receipts for the years 1854 and 1855^ contending that the practice before
prevailing of dividing each parcel of freight, according to, or in proportion
to, the distance it was carried on the respective roads, was not correct, but
that the computation and division should be made in proportion to the
number of tons carried one mile on the two Roads." The referee recites,
that the contract of 1846, provided "for a division pro rata, according to
the number of miles which each parcel was transported." That of 1853
that the division be "according to the distance carried, without allowance
to either company for depot charges." The Western Company had
claimed that even under the contract of 1846, with its expression, accord-
ing to the distance each, parcel ^aa carried, the division should have been
the same as under the expression of 1853 — "according to the distance car-
ried" — maintaining, that, in no other way, could the expressed intention
of the parties to give the Western a larger share, be carried out. But if
contrary to that intent, the parcel division under that contract must gov-
ern — manifestly under the contract of 1853, which leaves out the pro-
vision for the parcel Avrisiaa, the parties intended a different rule of con-
struction by this change of phraseology. The referee however held that
the parties did not intend to change the rule of division, by the change of
phraseology used, and that he was confirmed in this view, by the acquies-
cence of the parties for so many years, under the contract of 1846, — the*

*The "Western Report of January, 1858, alleges that for joint passengers, the con-
tract as practically construed and administered, gave to the Worcester Company, over
fifty per cent, more per mile of road than to the WeBtern from the same source, and
that under the rule adopted for joint frdght it gave twelve to fifteen per cent, to the
"Worcester, more than to the Western, having reference to the work performed by each,
in doing the business. (If so, it would seem to be no improvement to the practice
prior to February, 1846, so far as the Western was concerned.)

THE ■WESTERN EAILROAD. 127

absence of any evidence showing an intention or desire to ctange the rule,
in making the contract of 1853, and the subsequent adoption in practice,
of the same rule after 1853. He therefore awarded that the construction
claimed by the Worcester Company was the correct one, the joint receipts
to bC' divided pro rata, according to the number of miles which each parcel
was transported. The other minor questions were decided partly in favor
of the views of each Company. This being for the past business only,
the parties had no arrangement for the division of receipts after June 1,
1856.

But the President of the Worcester Company, being desirous to em-
bark for Europe on account of his health, a temporary agreement was
made May 12, 1856, to continue till December 1, 1856, the then existing
mode of division of joint passenger receipts. For freight receipts, some
slight modifications from the existing mode were made, as specified in the
agreement in appendix, F. F. This was considered prowOTowa? only, sub-
ject to any subsequent arrangement, which should have effect from June 1,
1856. On the expiration of this provisional agreement, no new arrange-
ment was'made, but numerous correspondence was had, without any satis-
factory result.

On May 30, 1857, the Legislature passed an act in addition to the law
of 1845, " on the use of railroads,'' providing, that the obligation of two
connecting roads, to draw the passengers, freight and cars of each, over
the road of the other, should be reciprocal ; and that each should furnish
depot accommodations for the business of the other; the whole to be on
such terms as the Commissioners appointed by the Supreme Court should
decide.

On June 15, 1857, the Worcester Company proposed that the two
Companies, should make a joint application for Commissioners under said
act. This was declined by the Western ; and on June 2?, 1857, the lat-
ter made a separate petition to the Court, for the appointment of Commis-
sioners, to fix the compensation to be paid to the Worcester Company for
the business of the Western, over the Worcester Hoad. The Worcester
Company also presented a separate application for Commissioners — and
at or about the same time, August 25, 1857, applied to the Western
•Company (under the new law of May, 1857,) for the terms on which
the Western would draw the passengers, freight and cars, of the Worces-
ter Company over the Western Eoad.

The applications for Commissioners by both Companies were heard by
the Court together, on November 2, 1857 ; and they appointed Messrs.
James W. Brooks, Holmes Hinckley, and Waldo Higginson, to that ser-
vice. They heard the parties in December following, and their Report
was returned to Court, in March, 1858. It adopted, to a great extent,

128 HISTOEICAl MEMOIR OF

the principle of station or parcel division of joint receipts, as claimed
by the "Worcester Company — giving much in detail and in elaborate
tables, the proportions and rules for each station, on each Road. The
ofiBcers of the Western Company moved the Court to set aside the award
— and the Worcester for its acceptance. A hearing was had before
Judge Metcalf, who reserved the case for the consideration of the full
Court. In December, 1859, arguments were had before that body. The
Court refused to set aside the award, on the general ground, that it raised
no questions of law for their decision, and that the questions submitted,
and to be considered under the statutes, and decided by the Commission-
ers, were questions entirely within their discretion ; and on those, and on
questions of fact, their award was binding and conclusive. They held
that it was no objection to the award, that it gave to either Company dif-
ferent amounts for carrying passengers and freight from the same station
upon its road to the junction, whence they are to be carried to different
stations upon the other road. The Court also held that such award could
not affect business prior to the filing of the petition for appointment of
Commissioners. Thus the parties had no rule of division from the expi-
ration of the old contract, June 1, 1856, to the time when the award took
effect. From that time to a period of one year from the taking effect of
the award, the parties were bound by its terms, as no new Commission
could issue within one year.*

At the session of the Legislature for 1860, under an order suggested
by friends of the Western Company, the Committee on Eailways reported
a bill, providing that all future Commissioners under these laws should fix
one rate of compensation, not to be varied by reference to the points from,
or to which, passengers and freight might be transported, on the paying
road. This bill was fully debated in the House, and passed by a majority
of sixty-three, 'but it was postponed in the Senate on the alleged ground of
want of time to consider it.t

In August, 1860, the two Companies agreed that the accounts from
June 1, 1856, to August 31, 1858, should be settled according to the pro-
visions of the contract of November 1, 1853, as construed by the award
of F. B. Crowninshield, Esq., referee ; and thereafter to November 30,
1860, according to the award of Messrs. Brooks, Hinckley and Higgin-

* The Western officers were so much dissatisfied with this award, that they o£fered
the "Worcester Company $25,000 to vacate it, but this was declined.

+ In March, 1860, the officers of the Western Company submitted to Professor
Pierce of Cambridge, the question of the practical effect of the two rules of division,
as claimed by each Company. Copies of the questions and answer will be found in
Appendix, G-. Gr.

THE WESTERN RAILROAD. 129

son — said award to be deemed waived and released after the latter date,
as to all subsequent transactions.'

During most of the season of 1860, frequent conferences were had by
the officers of both Companies, but no permanent adjustment was effected
for the future. But on November 27, 1860, a temporary contract was
executed, providing that the award of Messrs. Brooks, Hinckley a,nd
Higginson should be and continue binding, and the accounts be settled
monthly in accordance therewith, for six months from November 30, 1860,
the Worcester Company to pay the Western $1,000 monthly during that
time.

On the expiration of that time, the Directors of the Western say that
" in consideration of existing national troubles, producing uncertainty in
all departments of business," this temporary arrangement was continued
for one year, to May 31, 1862.

In the Annual Report of January, 1861, the Directors of the Western
Company repeated the complaint that, although the contracts between the
parties, professed to give the Western a higher rate, than to the Worcester,
for joint freight and passengers, yet, practically, by the construction in-
sisted upon by the Worcester, that Company received a higher rate than
the Western, and they give some statistics of business in 1859 and 1860,
in confirmation of this position. See Appendix, H. H. They maintained
that by this principle of construction, (" the parcel and station division")
the aggregate prices of transportation were increased so as to affect injuri-
ously the business of Boston, in competition with other cities. They say,
that, " while the Stockholders of this Company have no reason to com-
plain, that their property is unproductive," it is, " our duty to see that in
the future, the business between Boston, and the way stations on our
Boad, 18 relieved from the unjust tax, to which it is subjected for the ben-
efit of the Worcester Road."

Under the suggestion that the business of Boston suffered from this
cause, as well as by the effects of a serious want of harmony between the
two Companies, the subject, early in 1862, attracted the attention of " The
Boston Board of Trade" whose Officers sought a conference with the
Presidents of the two Railroad Companies — and after several interviews,
and a free disclosure of the views of each Company, the two Companies
after reciting the claims of each, and the reasons for different principles
of settlement, entered into an agreement on April 12, 1862, to submit their
differences, to Charles O. Whitmore, Nathaniel Harris, James H. Beal and
Joseph S. Fay, of Boston, and George C. Richardson of Cambridge, — a
Committee of the Board of Trade of Boston, with the powers of referees, to
"settle the accounts of their joint business," "until the expiration of one
year, from the 31st day of May next, and of three months notice, in wri-
17

130 HISTORICAL MBMOm OF

ting, by either party to the other, of its desire to terminate the same, ex-
piring with, or after said year," — and providing that any question, arising
in relation to the application or construction of their award, or relating to
business done during its continuance, might be determined by a majority
of said arbitrators.*

Very protracted hearings were had, which are stated with much detail
in the subsequent Report of the Committee, to the Board of Trade, here-
after noticed — and on July 10, 1862, they as referees, made their award,
a copy of which will be found in Appendix, 1. 1. Upon the main points
of difference they decided, as follows :

1. Each to bear aU expenses, and be liable for all injuries and losses
on its own Boad ; and where it could not be ascertained on which Road
the losses occurred, the amount to be deducted from the joint receipts be-
fore division.

2. That the "expenses of loading, unloading, cooperage, and collection
charges," be "offset on each Road, by similar services of similar na-
ture, and, on the part of the Western Road, by charges peculiar to that
Road."

3. After deducting from joint receipts, any losses, as provided in article
one, and also expenses of agents West of Albany, agreed upon by both,
the joint freight, and passenger receipts to be divided as follows, viz. At
the end of each month, the amount of joint freight and passenger trans-
portation by each to be ascertained, by obtaining the number of tons, and
passengers, carried one mile, by each, and the aggregate receipts of both
therefor, shall be divided between the two, in proportion to the number of
tons, and passengers, carried one mile by each.

These gentlemen, so acting as referees, having, previously to their ap-
pointment as such, been a Committee oflSciaUy appointed by the Boston
Board of Trade, to consider this subject, particularly as affecting the busi-
ness of the city, made an elaborate Report to that Board, under date of
August 8, 1862.

That Report recites with some particularity the origin and history of
the controversy, the repeated negotiations and temporary contracts of the
parties, applications to the courts and the Legislature, the awards of ref-
erees, and the appointments and reports of commissioners, during the long
period of twenty years ; and then presents abstracts of statistics of busi-
ness, and of elaborate tables presentfed by both parties at the hearings.

The Committee say, they met the parties on seventeen days, examined

* It is proper to say, that in all the numerous submissions of the parties to referen-
ces, and in all the temporary agreements, for modes of division, and settling their ac-
counts, for limited periods — they provided, that no such arrangements should be held
as a concession by one, to the views of the other, but each maintaining its own positions.

THE WESTEEN RAIliROAD. 131

forty-two annual Eeports, fifty-one tables of statistics, many freight and
passenger tariffs, several memorandum books, calculations of interest, and
heaps of pamphlets and papers ; that they listened to arguments, testi-
mony and conversations, which, as written out by phonographers, fill
four hundred and fifty-six foolscap and ninety letter-sheet pages, and had
nine private consultations after the hearings; and then exclaim: "All
this time, and all these documents, to fix terms for the, 'joint business' of
the Worcester and Western Bailroads, from May 31, 1862, to. the same
day Anno Dornini 1863." "What next ?™-withoutMTO'om, what?" "Prob-
ably frequent appeals " to the Court,^r the Legislature, or referees.. And
they then add, " and this controversy is to continue ; and this Board is to
hear — as from its very organization it has heard — complaints, and just
complaints, of injury — great injury — ^to the business of Boston, and, of
direct consequence, to Massachusetts."

The Committee recommended strongly, as the only effective remedy
for these evils, a union or consolidation of the two Corporations. They
recite, on that subject, the proceedings of the two Companies in 1845, and
the unanimous recommendation of able Committees of stockholders of
both Companies, by a joint Eeport in favor of the measure. They quote
and approve the language of that Report, that "the great Western route
from Boston, the capital of New England, to Albany, which is the gate-
way of the West, is so clearly marked as a single, distinct and entire route,
that it must Strike every one as the most natural and proper course, that
the great channel of Eaiboad communication between these two promi-
nent points should be one likewise."

In the annual Eeport of January, 1861, the Directors of the Western
say, " We have heretofore suggested that a consolidation of the Roads, on
an equitable basis, would at once remove these sources of differences, so
annoying, so interminable, and which bid fair to exist at all the numerous
points, at which the interests of the two Eoads come in contact. As an-
other means of relief, it remains further to suggest, that the exclusive
privilege now enjoyed by the charter of the Worcester Company, between
Worcester and Boston, expires on the 23d day of June next," (1861,)
" and it will then be in our power, with the proper legislative sanction, to
extend our Eoad by a line wholly independent, or by connection with
other Eoads, to Boston."

So in the Eeport of January, 1863, the Board say "these wide differ-
ences, the hazard of submitting to the arbitration of outside parties," &c., —
" the importance, not only to the stockholders, but to the publicj of termi-
nating these difficulties, — compel us to ask for such legislation, as will either
enable the stockholders of these Corporations to adjust these matters in
their own way, or allow this Corporation to reach Boston with its busi-

132 mSTORIOAi MEMOIR OF

ness, by some route, by which it can carry its freight at a rate no higher
than it receives west of Worcester."

In pursuance of this last suggestion, the Directors of the "Western, after
giving the notice required by law, and making surveys for an independent
line, have, at the present session of the Legislature, (1863,) applied to that
body for authority to construct such Eoad between Worcester and Boston,
either independently or partly in connection with some other Company.

While this application is pending in the Legislature, the stockholders of
the Worcester Company have appointed a Committee of three, to meet a
similar Committe of the Western Cynpany, to confer upon the subject of
a consolidation of the two Companies. The stockholders of the Western
Company promptly responded to this invitation, by the appointment of a
similar Committee, and the two Committees are acting in concert to ob-
tain the necessary information, to enable them to judge of the expediency
of the union, and the terms upon which it can be brought about.

ORIGIN AND PROGRESS

OF THE WESTBEN BAILEOAD AND THE ALBANY AND WEST STOCK-
BRIDGE RAILROAD

SINKING FUNDS.

The subject of the Sinking Funds has been purposely deferred, in
order to present their origin, history, and progress in one continued nar-
rative.

There are two separate Funds, the Massachusetts and the Albany,

1. All the Massachusetts grants of State scrip, provided that the pre-
mium or profits received on the sale of the scrip should be paid to the
Treasurer of the Commonwealth, and in the later grants to the Trustees
of the Sinking Fund ; and that annually, after the Eoad should be opened
for use, one per cent, on the amounts of the several grants of scrip should
be set apart from the income of the Boad, and should be paid to said
Treasurer or Trustees, and the whole be placed at interest, and the same
with the interest annually accruing thereon, should constitute a Sinking
Fund, for the future purchase or final redemption of the scrip. As the
scrip was made payable, and to be sold, abroad, the profits were held to
include premium on exchange drawn for the proceeds of sales. All the
scrip certificates were made payable in thirty years from the dates of their
issues, severally.

By an act of March 13, 1839, the Treasurer of the Commonwealth,
and the Treasurer of the Western Bailroad Company for the time being,
were made ex officio Commissioners of the Sinking Fund of the Western
Eailroad Corporation. They have the care and management of all the
monies, funds and securities of the Sinking Fund — the monies uninvested
and the securities, to be in the custody of the Treasurer of the Common-
wealth. They were required to invest the monies securely, so as to be
productive ; and the investments originally required were, by loan to any

134 mSTORIOAL MEMOIR OF

county, city, town or bank in Massachusetts — or well secured on mortgage
of real estate, or by pledge of stocks of the United States, or Massachu-
setts, or the city of Boston — or of any Eailroad in Massachusetts com-
pleted, and whose original capital was paid in, and whose property was
unincumbered ; one-third of the Fund to be loaned on mortgage of real
estate, to an amount not exceeding two-thirds of its value. The Commis-
sioners were authorized to invest a part of the Fund in the purchase of
any of the stocks before mentioned, but not over twenty per cent, of it,
at one time, in Eailroad stocks, and not over seven per cent, in stock of
any one Eaiboad Corporation. Authority was given to sell and transfer
any stocks or securities of the Fund.

The Commissioners were required to keep a record of their proceed-
ings, and annually, in January, make a report to the Legislature, setting
forth their proceedings the preceding year, the amount and condition of
the Fund, the investments and income for the yea»; — the record, securities
and books to be at all times open to the inspection of the Governor and
Council, or any Committee of the Legislature.

2. The JJbany Sinking I\md. — By the two contracts with the City of
Albany, for the loan of Bonds of the City,, to the amount of $650,000,
and $350,000, severally, or one million, to be issued and delivered, to the
Western Eailroad Corporation, for the construction of the Albany and
West Stockbridge Eoad, it was provided, that the Chamberlain of the
City of Albany, for the time being, and such person as should, from time
to time, be named in writing, by said Western Eailroad Corporation,
shouldtee Trustees of the Sinking Fund, therein provided for ; and the
Western Company agreed to pay to said Trustees,, ten per cent, on such
bonds, as they should receive the same, and,.annually, after the said Eoad,
should be opened for use, to pay also to said Trustees, one per cent, upon
the whole of the Bonds which shall have been so issued.*

Thomas W. 01cott,Esq., of Albany, the President of the Mechanics and
Farmers' Bank, and a distinguished financier, was appointed a Trustee
Ml the part of The Western Corporation, and he has held the office ever
since ; having practically the entire care, and investment of the securities
of the Fund ; and he has, with unwearied labor and assiduity, managed
the business with eminent success.

The contract required, that the monies received by the Trustees, and
the interest accruing, should be invested in Bonds and Mortgages, on EeaJ
Estate, in the City of Albany, or in Stocks of the States of New York,
or Massachusetts — the whole to constitute a fund fox the_ final payment of
the Bonds. In March, 1849, the contract was so modified^ as to authorize

* See ii^pendts, J. J., for extracts from the contract of April 20, 1840.

THE WESTERN RAILROAI*. 135

a loan from this fund, to the Western Railroad Corporation, secured by a
pledge of the Stock of that Company.

The Bonds of the City run thirty years from their dates, severally. The
Western Company agreed to pay the interest upon them semi-annually ;
and when the Fund should amount to a sum sufficient to pay the Bonds, the
payment of the one percent, annually, is to cease — and thereafter any in-
terest accruing on the Fund is to be paid to the Western Company. When
the Bonds mature, and as they mature, the Fund is to be applied to their
payment, — and any surplus of the Fund remaining is to be delivered over
to the Western Company. And the City of Albany agree, then to trans-
fer the whole of the one million of shares of the capital of the Albany
and Western Railroad Company, (which they hold as additional security
for the Bonds*) to the Western Company, or such parties as they shall
designate, upon surrender of the Bonds to the City.

The three several grants of the Scrip of Massachu-
setts amounted to - - - $4,000,000 00

The Bonds of the city of Albany to, - - 1,000,000 00

Total, -

.

$5,000,000 00

The Massachnsetts Scrip

matures as follows :

£135,000

-

April 1, 1868

337,500 -

-

Oct. 1, 1868

90,000

-

Oct. 1, 1869

180,000 -

-

April 1, 1870

157,400

-

April 1, 1871

£899,900t=$3,999,555.56, all at five per cent, payable semi-
annually.

Of the above, £380,800 is payable in London, and the balance in Lon-
don or Boston, at the option of the holder.

If paid in London, it is subject to the ruling exchange, or if paid in
Boston, it is entitled to an equivalent of exchange, then assumed at $4.80.
There should therefore be added to this part of the funded debt of the
Company, .... $3,999,55556

Exchange at $4.80, or - - - 319,964 44

Total Massachusetts funded debt, - $4,319,520 00

Add Albany bonds, - - , - 1,000,000 00

Whole funded debt, - - - $5,319,520 00

* Excepting about sixteen shares, which are held by individnals, in trust for the
■Western Company, to keep up the organization of the Albany Company.
f £100 of the scrip was never issued.

136 mSTORICAIi MEMOIR OP

The Albany Bonds are payable in Boston at six per cent., payable semi-
annually, say July 1, 1866, - - - $250,000
July 1, 1870, - - - 300,000
July 1, 1871, - - - 200,000
July 1, 1876, - - - 250,000

$1,000,000

At the time of the first grant of the credit of the State of Massachu-
setts, the friends of the Koad represented, that the premium on the sale
of the scrip, with the addition of one per cent, annually on the amount of
the loan, from the income of the road — the whole being at interest of five
per cent, annually — would pay the Massachusetts scrip at its maturity
(the interest on the scrip being paid by the Company.) The first $900,000
of the scrip sold, produced from premiums on sales, and exchange, eleven
per cent. Assuming that the whole $2,100,000 would sell at the same rate,
it would produce $231,000 ; with annual interest on this, at five per cent,
for thirty years (assuming it was put on interest from the date of the
script it would accumulate to - - $998, 360 53

One per cent, on the amount of the loan annually, for
twenty-seven years (the payment to begin when the
road should open for use,) would add - $1,205,425 92

$103,786 45 in excess of the $2,100,000 debt - $2,203,786 45

And if, as those parties then assumed, it was probable, a considerable
part should produce six per cent., they felt confident' that it would cover
any probable losses of interest or principal.

But this computation was liable to several deductions.

1. The scrip was not sold till some months after its date, and the re-
mittance to this country would take some time, so that the premium and
exchange on the proceeds could not be on interest for thirty years.

2. The exchange at 4.80 when added to the debt, would require a
large fund for its payment, when due, exchange was not then considered
as a charge.

3. There was, in fact, beside the three years allowed for the opening
of the Boad — a drawback on the payment of the one per cent, on the
amount of the loan — as by the terms of the grant, it was required to be
paid out of the income of the road * — as in 1842 the net receipts of
$349,440 70 for 1842, and prior years, were applied towards the payment
of the interest account, which had accrued in several past years,t andin

* The road was opened for use in October, 1841.
f Ann ual Beport of January, 1843, page 28.

THE "WESTERN RAILROAD. 137

1843, the earningg were hardly sufficient to pay the expenses and inter-
est for the year, so that nothing was paid to the Sinking Fund from
income iu those two years — a loss to the fund of $80,000 in the two
years.

4. Further losses to the Fund,* or deficiency of payments to it, unex-
pectedly occurred from the fact, that of the four millions of scrip, only
$1,503,555 55 sold at a premium — the amount of which pre-
mium was - - - - $28,425 40
The premium of exchange drawn for do. was - 118,042 12

Total amount paid to Sinking Fund from sales of Massachu-
setts scrip ... - $146,467 52

The residue of the scrip was sold at a discount, amounting

in the whole to a loss of - - *$179,462 24

This loss was not a direct charge upon the Sinking Fund, but it dimin-
ished by so much the assets for the construction and equipment of the
£oad.

There was also a loss of some $10,400 on the sale of Albany Eonds.
This did not affect the Albany Sinking Fund. But that loss also dimin-
ished the assets for construction.

In their annual Report of January, 1842, page fifteen, the Directors
say, "The novel and dangerous doctrines advanced by some of the States,
in reference to the validity of ' State and city ' securities, and the refusal
or neglect of others to meet the interest upon their debts, have, during
the whole of the past year, operated abroad to discredit and depress the
price of all State stocks, indiscriminately, and to prevent sales, except at
a ruinous sacrifice."

The sum of $349,440.70, which in January, 1843, was the amount of net
income to that date, as before stated, and which was then applied to the
construction interest account,- (though perhaps $40,000 of it should then
have been paid to the Sinking Fund,) was in 1849 restored to the income
account virtually, but at the same time a part of it, viz., $310,739.28, was
charged off to depreciation of engines and cars. It would seem, if any
transfer was to be made, that it was manifestly proper to have appro-
priated to the Sinking Fund $40,000 of the amount, with interest upon
that sum from January, 1843, when the one per cent, from income was
due to that fund.

The first payment to the Massachusetts fund of the one per cent, from
the income, was made December 31, 1844. From that time to the pres-
ent, this payment has been made for every year ; though in one or two

* Annual Report of January, 1843, page 1 of Assets,
18

138 mSTORICAl MEMOIB OF

cases the payment was not punctual. At the above date, this fund as re-
ported, amounted to $239,451.00.

The Albany Boad was opened for use through the whole line, Septem-
ber 12, 1842. The payment of the onq per cent, to the Albany Sinking
Fund did not depend upon the income of business, but was due by con-
tract from the Western Company. The first payment of $10,000 was
made by that Company, in December, 1843, and the second in Decem-
ber, 1844. These, added to the ten per cent, from proceeds of the Bonds
and accumulated interest made the amount of the Albany Fund, January
1, 1845, ... - $149,759 17

Value of both the funds January 1, 1845, - - 389,210 17

An act of the Legislature of Massachusetts, of March 25, 1845, au-
thorized an increase of the capital stock, from time to time, equal to
the sums paid, or thereafter to be paid, to the Sinking Fund, and
the interest accrued thereon at the times of such increase, — of which
$330,000 should be applied to construction, and the residue from time
to time to be added to the General Fund, and appropriated as to the
Directors should seem best, — but such part as exceeded the amounts
annually, paid to the Sinking Fund, should be appropriated to construc-
tion.

January 1, 1846, the value of both Funds," as per Annual

Report, was ... - $465,251 28

Mr. President Gilmore, reported it as of November

30, 1846, at - - - - 539,658 71

And that Report adds, that the value of the Massachusetts Fund
at the average time the scrip will fall due — the one per cent, being
annually paid, by reckoning compound interest at six per cent, would
be - - - - - $2,783,286 22

And of the Albany Fund, on the same basis, - 1,299,156 83

Total, both funds, at average times of maturity, - $4,082,443 05

The Massachusetts act of April 24, 1847, authorized an increase of
capital, by adding $1,600,000 — the proceeds to be appropriated to con-
struction, to payments to the Sinking Fund — and the purchase of sterling
scrip of Massachusetts. It provides that the Company might pay the
Sinking Fund in sterling scrip, and might purchase the securities of said
fund, with said scrip. The Annual Report of January, 1849, states, that
up to January 1, 1848, there had been "paid to the Sinking Funds from
the proceeds of shares - . - $213,111 10"

The Investigating Committee of Stockholders, in their Report, dated
February 11, 1852, page 35, say, that there had been contributed to the

THE -WESTERN RAILROAD. 139

Sinking Funds "trom proceeds of Stock and Ponefe as required or per-
mitted by law prior to January 1, 1849," - *$459,578 62

By an act of April 26, 1847, the provisions for investments of the Mas-
sachusetts Fund, were changed, by authorizing the Commissioners to in-
vest in Railroad stocks of Massachusetts Companies, whose original cap-
ital was wholly paid in, — excepting the Western Eailroad stock — also in
the purchase of any stocks specified in the act of March 13, 1839, — but
not over thirty per cent, in Railroad stocks, and not over ten per cent, of
the fund, in the stock of any one Railroad. The Commissioners are also
authorized to transfer to the Western Railroad Company, any stocks or
securities of the fund, on receiving an equal amount of sterling scrip of
Massachusetts ; and they are required to receive in said scrip, all sums
paid by the Western Railroad Company to the fund, if requested by the
Company. This act repealed so much of the act of March 13, 1839, as
militates with its provisions.

An act of May 9, 1848, prohibited further payments to the Sinking Funds
from the sale of shares, but provided, that such payments should con-
tinue to be made according to the law of March 13, 1839.

April 12, 1848, the Common Council of Albany authorized investments
of the Albany Sinking Fund, in bonds of the City of Albany, guaranteed
by the Western Railroad Corporation, and in other stocks of that City, or
of States of New York, or of Massachusetts, or the City of Boston.

An act of May 24, 1851, provided that the Commissioners of the Sink-
ing Fund should have perpetual succession in law as Commissioners —
that grants of land to them should be taken as in fee, — and all mortgages
to them should enure in fee, — that they alone should have power to fore-
close, and might give releases.

At the annual meeting of stockholders in February, 1851, Messrs. A.
H. BuUock, William Jackson, J. Gardner, D. Wilder, Jr., and William
Raymond Lee were appointed a Committee, among other things, to ex-
amine and report upon the property and assets of the Corporation, and
their opinion of the value thereof. The Report was presented at the
meeting in February, 1852. Qn the subject of the Sinking Funds it says :
"As to the Commissioners who have charge of the Funds, it is but just to
say that the interests have been carefully regarded ; and that, while the
income is uncommonly large from both, the securities are, (with perhaps
the exception of one mortgage in the Albany Fund,) of the first class ;

* This included $100,000 paid to the Albany Fund from the proceeds of Albany
Bonds, as per the original contract with the city of Albany — and $146,46t 52, pre-
mium and exchange on sales of Massachusetts sterhng scrip — paid to the -Massachii-
setts fund, as re<^uired by the grants of the scrip ; so that only $213,111 10 was paid
to the fund &om proceeds of shares or bonds sold.

140 HISTOEICAL MEMOIR OF

and that they cannot but feel, that this portion of the property belonging
to the Corporation, is in a most satisfactory condition." They add, that
the present value of the Funds (February, 1852,) is within a fraction of
twenty per cent, per share of stock.

The value of the Massachusetts Fund, January 1, 1852, was $698,039 41
And of the Albany, January 1, 1852, - - 320,467 34

Total both Funds, - - - $1,018,506 75

And the Committee say, that if interest is cast upon this at six per cent.,
and upon $50,000 per year, added from the earnings of the Eoad, to Janu-
uary 1, 1870, they will amount to - - $4,452,424 00

The debt bemg .... 5,319,256 00

Deficiency only, . . . *$864,826 00

In 1855, a Committee, consisting of F. Hayes, J. IngersoU Bowditch,
and J. J. Dixwell, was appointed on the subject of obtaining the neces-
sary funds for constructing a second track from Springfield to Albany,
either by use of a part of the Sinking Fund, or in such other manner as
the Committee should judge expedient ; also to examine and report upon
the condition of the Funds, and whether any change was desirable in their
investments or management. The President had made a communication,
recommending such use of a part of the Fund for the second track, and
for the payment for the purchase of the Hudson and Berkshire Eailroad,
which communication had been committed to this Committee. Their Re-
port was dated March 7, 1855.

They examined the, subject in detail, and reported against such use of
the Sinking Fund ; principally on the ground, that the Fund had, by
many acts of the Legislature, been recognized as a sacred deposit for the
redemption of i the State scrip; — that it was not only a security to the
holders of the scrip or bonds, but a safeguard to the stockholders, that the
enterprise might not be overwhelmed at the maturity of the debt. They
add, " we hold that in the establishment of the Sinking Fund, and in the
negotiation of the bonds, there was a compact between the Company,
the State and the bondholder, that the Sinking Fund should be kept in-
violate, for the future purchase or final redemption of the scrip ; and that
it cannot be used for any other purpose, except with the consent of all

*If the one per cent., or $40,000, had been paid to the Fund in 1842, and in 1843,
from the rfeoeipts of $349,440. '70, instead of applying the whole to construction inter-
est account, that; placed upon interest at six per cent, up to January 1, 18t0, would
have added about $400,000 to the Fund at the latter date.

THE WESTERN RAlLROAi). 141

parties to the compact," and that it is impossible to obtain the consent of
all the bondholders.*

1. In their examination of the securities of the fund, the Committee
report, thstt they found nearly $100,000 of the Massachusetts Fund
invested in the shares of the Providence, the Worcester, tlie Low-
ell and the North Adams Railroads, at rates much above the then
market, price, though nearly all at rates under par; and they ex-
press the " opinion that the fund should not be invested in any
other than those securities, which are sure of an income, and are
not exposed to the hazards of business," and they recommend a
change, when a good opportunity offers. They disapprove of a loan to
the Connecticut River Railroad Company of $200,000 without security;
as they doubt the propriety of loaning to any person or Corporation
without security.

They found in the Massachusetts fund notes of $20.5,591 91, secured
by fifty-one different mortgages — many past due, but, in almost all cases,
there was sufficient property to secure the debts.

2. The Albany fund was, in part, of $294,317, secured by more than
one hundred different mortgages, all on real estate in the City of Albany,
The Committee think the entire amount of investments will be collected.
They recommend the collection of over-due loans and some others, and
suggest some changes in the mode of keeping the accounts of the Com-
missioners, — the opening of new books and re-writing the old ones.

In view of the great and increasing magnitude of the funds, the Com-
mittee "recommend the appointment by the Stockholders annually, of a
person from their number, of skill and experience, who should supervises
the condition of the fund and its investments, and suggest to the Com-
inissioners such changes, from time to time, and such investments, as he
should judge advisable, — to report annually to the Stockholders. Mr. J.
IngersoU Bowditch was appointed supervisor.

An act of March 26, 1858, provided, that " all future investments of
moneys belonging to the Western Railroad Sinking Fund shall be made
in the following securities. The bonds of the Commonwealth for the
redemption of which said Sinking Fund is provided.

Other bonds of the Commonwealth.

The public securities of the United States. '

The public securities of the State of New York.

The public securities of either of the States of New England.

The public securities of the cities or towns in this Commonwealth.

*The Committee suggest two other modes for raising the neoessaiy means, by the
tonds of the Company, or increase of capital stock. ,

142 HISTORICAL MEMOIR OF

By section second, the Commissioners were required to collect as soon
as may be, all loans which are overdue, or shall hereafter become due —
and re-invest them as provided in the first section.

This act excludes investments on mortgages of real estate. It excludes,
loans to counties or banks, or on pledge of stocks of any hind, all of which
were authorized by previous loans.

By act of April 10, 1861, it is provided, that in addition to the securi-
ties specified in the above act — the moneys of the fund, "may be invested
in the stocks of any Bailroad Corporation in this State, whose Road is
completed, whose capital has been wholly paid in, and whose Boad and
property are unincumbered, and which has earned dividends of at least
six per cent, per annum, for three years next preceding such investment;
but not more than twenty per cent, thereof, at any one time, to be invest-
ed in said Baih'oad stocks, and not more than seven per cent, thereof, in
stock of any one Bailroad Corporation — (no investments to be made in
the stock of the Western Bailroad Corporation.) Also in such securities
as the deposits in Savings Banks of this commonwealth were authorized
to be invested in — ^by the 142d, and 143d sections of chapter fifty-seven, of
the general statutes, — subject, to the same restrictions as to amount, in pro-
portion to the whole fund, to be invested in any one kind of security as
are applicable to savings banks. Savings Banks, were by the fifty-seventh
chapter of the general statutes, authorized to invest, in addition to some of
the securities allowed for investment, of the Sinking Fund, — in the follow-
ing — on first mortgages of real estate in this State, or in stocks pf banks
incorporated by the State — in loans to counties in this State, or on notes
with a pledge of any securities authorized to be purchased — as collat-
eral ; but not more than half of the capital of any bank, to be held
by way of investment or security — and not more than ten per cent,
of its deposits — and not to exceed $100,000 — ^in the capital stock of any
Corporation.

These two statutes contain all the provisions for the investments or se-
icurities of the sinking fund now in force. The last mentioned law (of
April 10, 1861,) required the Commissioners to cancel the bonds of the
Commonwealth and the coupons annexed, for the redemption of which the
fund is provided, and which may be purchased by the Commissioners, in
the investment of moneys of the fund; — Provided the Western Bailroad
Company shall give them an agreement to pay interest on said bonds to
the time of maturity — the Treasurer of the Commonwealth to retain the
custody thereof, as representing so much of the investment of said fund,
to be surrendered at maturity.
The value of the Massachusetts fund November 30,

1862, was, .... $1,936,006 77

THE WESTEEU RAILROAD. 143

This had accrued :

1. From premium and exchange on sale of

sterling scrip, - - $146,467 52

2. One per cent, on the loan, paid by the

Western Railroad Company, *7 60,000 00

3. Interest and accumulation, - 1,029,539 25

$1,936,006 77

The value of the Albany fund, November 30, 1862, was, $778,349 79
This had accrued :

1. From the ten per cent, deducted from the

original million, by the contract of 1840, $100,000 00

2. Contribution of one per cent, on the loan

annually paid by the Western Company,
from December, 1843, to November 30,
1862, inclusive, - - 200,000 00

3. Balance, interest and accumulation, 478,349 79

$778,349 79

Total amount of both funds, November 30, 1862, $2,714,356 56

Of which were from accumulation, - - $1,607,889 04

The two funds are equal to $52.70 per share of $100, on the capital
of $5,150,000.

It is very apparent, that, the Albany fund will accumulate suflSciently,
to pay off the whole of the Albany bonds, long before the whole mature.
A part of that fund is at seven per cent. It has never produced less than
six per cent. At that rate, computing upon the amount of it Novem-
ber 30, 1862, with the one per cent, annually, the fund will be ade-
quate to pay off the whole loan in 1866, when the first $250,000 fall
due. The last issue of ifye bonds of $250,000, mature ten years later,
in 1876.

But by the provisions of the contract with the city of Albany, dated,
April, 2,3, 1840,t the expression is, that the Western Company shall pay
annually to the Albany Trustees, " the amount of one per cent, on the
whole of the bonds which have been so issued," with a proviso that, when
a sufficient sum is realized to " pay the amount due on the bonds, the
said annual payment of one per cent, shall cease," and the interest there-
after be paid over to the Western Company. There is a further proviso
that the Western Company shall have a right, at any time, to purchase
and surrender to the city, " any portion of said bonds ; " and thereafter,

* Of this amount there was paid from sales of shares, $213,111 10. The balance
was paid from the Income of tfae business of the Eoad.

f This was for the first city loan of $650,000. On the subsequent addition to the
loan of $.S50,opo, a' similar contract was made, and is presumed to be in the same
terms. See Appendix, J. J.

144 HISTORICAL MEMOIR OF

the said annual payment of one per cent, to the Sinking Fund shall be
reduced in the same proportion."

If by such purchase or surrender, the fund " shall be more than suf-
ficient to pay the balance of the bonds on scrip outstanding, said surplus
shall be paid over to the Western Company ; — and when the bonds fall
due, the fund, or such part of it as is necessary therefor; shall be applied
to their payment — and when all are paid and surrendered, such part
of the fund as remains, if any, shall be paid over to the Western Com-
pany."

No direct provision is made for the contingency of the bonds maturing
in different years. But it seems clear that some part, at least, of the fund
must be preserved intact, till 1876, when the last parcel of the bonds,
($250,000) falls due, unless they are purchased and surrendered before
that time. The holders of that class of bonds are entitled to this. But
the clause authorizing the Western Company to purchase and surrender
any part of the bonds at any time, and have a corresponding reduction of the
annual payment of one per cent., will justify the construction, that there
shall be a similar reduction of the one per cent., when, upon maturity of
part of the bonds, such part shall be paid. Thus if $250,000 is paid
July 1, 1866, the payment, November 30, 1866 would be one per cent,
on $750,000, and so of subsequent payments on maturity of the bonds.
Upon this principle, assuming the fund, as per report of the Directors, to
be on November 30, 1862, $778,349 79, annual interest cast upon this
sum to July 1, 1866, when the first bonds mature, and adding the one per
cent, annually, with interest upon that, then deducting the payment of
$250,000, and carrying along the annual payment of $7,500, and the in-
terest to July 1, 1870, and deducting the payment of $300,000 then due,
and the same process to 1871 — and to 1876 — when the last payment is
•due, there would remain of the fund nearly the sum of $500,000, to be
paid over to the Western Company.

But here interposes a provision of the contract, that when the fund is
sufficient to pay all the bonds, the payment of one per cent, shall cease —
and thereafter, the interest accruing, shall be ' paid over to the Western
Company. This goes upon the presumption, that the fund is adequate to
meet all the bonds, before they mature, and before they can be called in.
The fair construction is, that it was the intent and object of the parties to
the contract, always to have in the hands of the Trustees of the fund, a
sum sufficient to meet all the outstanding bonds, as they should mature ;
and that the surplus should enure to the benefit of the Western Companyl
On July 2, 1870, there will be unpaid of the bonds but $450,000. The
fund at six per cent, will be about $680,000. Clearly, according to the
above construction of the contract, the payment of one per cent, should

' THE ■WESTERN RAILEOAD. 145

cease, and the accruing interest thereafter be paid over to the Western
Company.*

The last of the Massachusetts scrip matures April 1, 1871, about four
years before the last of the Albany bonds. And it is worthy of note, that
there is no provision that the surplus of the Albany fund may be applied
to the deficiency of the Massachusetts fund to pay the whole of the Mas-
sachusetts scrip.

The only provision is that such surplus of interest and principal, shall
be paid to the Western Company. It would be very desirable that
such an arrangement should be made by contract between all parties, that
that surplus might be applied to Massachusetts scrip — such part of the
Massachusetts scrip as is not paid by the Massachusetts fund — to be re-
newed until the surplus of the Albany fund falls in. That surplus will not,
however, be sufficient to pay aU the Massachusetts scrip, otherwise unpro-
vided for. The balance will probably be supplied by increase of capital,
and sale of new shares. In this view, it will be noted, that when the
Albany bonds are paid and surrendered, the city is to transfer the million
of stock of the Albany Company, held by the city as additional collateral,
to such persons as the Western Compamy shall designate. Perhaps
these shares may be used instead of increasing the shares of the Western
Company.

An act of the Massachusetts Legislature of May 15, 1855, authorizes
the Western Company, the Albany Company, and the Hudson and Boston
Company, to be consolidated mto one Company, by the name of the Bos-
ton and Albany Bailroad Company, at such times, and on such terms as
they may mutually agree. With similar authority from the New York
Legislature, it may be desirable not only to provide for the disposition of
the Albany shares, and future surplus of that fund, but very essentially
simplify the ordinary operations of the business and accovmts of the three
Companies.

We have thus given, in a condensed form, the history and progress of
the Western Boad, from its organization, in January, 1836 — ^twenty-seven
years — to the present time, — embracing twenty full years of business
upon its own track through, between Worcester and Albany. The docu-
ments and tables in the Appendix show in detail, the gradual increase
from year to year, of the capital and cost of the road and equipment, the
additions to the means of doing the business, and the great increase of
that business.

* Possibly, this might safely be done at an earlier date. On July 2, 1868, $750,000
of bonds will be unpaid, and the fund will then be $890,000, in either case the one
per cent, being paid only upon the amount of bonds not matured.
19

146

EISTQE];CAL MEMOm

<„', ,Th^ f9l]owiiig table presents a pompanson of various jtents! in 1843
and 1862:

-^.

Cost of Boads

and
Ectuipment.

■4
^1

II

,1
1}

|1

.. Net
Income.

,■5:1'

No. of tons of

freight equal

to through,

1846 t9 f862.

1

Amount of
Sinking
fund.

'l843
1862

$7,666,791.67
11,218,476.41

27
73

20
62

316
1099

116

$269,909.46
984,664.30

200,965)^
668,047'j^

(1846) ;
100,960

(1862)
3^2,296

441,608J^
1,257,201

$177,629.68
2,714,366.6S

Incr.

$3,661,684,84

46

32

783

116

$714,654.86

357,082

231,346

815,59234

$2,536,826.98

For the last ten years, the dividends have a.veraged per share or, per
cent., 7 -jB^.

If the payments to the Sinking Funds had been divided also, the divi-
dends would have been, per cent, average for ten years, 8 -jVir-

On November 30, 1862, the amount of the two Sinking Funds was
equal to $52.70, on each share of the capital stock of the Western Com-
pany.

APPENDIX.

A. Page 5.

'W'HitE this ^port & feVbr 6t a Canal, was pending in the lie^^laturia, an ahony -
mous writer in the Boston CJourier, of February 28, 1826, "(understood to be David
Eenshaw, Esq.,) made two computations of the time it would talce to complete the'
Eoosac Tunnel, upon data furnished by the Beport.

1. Taking the Schuylkill canal tunnel, four hundred feet long ; the sectional area
eighteen feet by ten, making the transverse section one hundred and eighty feet. It
took as many men as could work night and day for eight months, or two hundred and
eight working days. Thus 180x400^72,000 cubic feet. The Hoosac tunnel being four
miles, or 21,120 feet, the area 202l3| gives 5,'r02,400 cubic feet. If 12,000 cubic feet
took two hundred and eight working days and nights, it would take to excavate
6,102,400 cubic feel^ fifty two years and one hundred ninety-seven days.

2. Taking the Lehigh tunnel, six hundred linear feet, by the same process, the same
writer stated, it would take one hundred eighty-two years and fifty-eight days.

B. Page?:

Early in July, 1826, and a few days after the appointment of fir. Phelps' Commit-
tee, some members of the Legislature attended the funeral of President John Adams,
at Quincy ; and then visited the Quincy Eailway. Mr. Webster being of the party,
Dr. Phelps had some conversation with him on the subject of the new ipropositt<m, then
much ridiculed. Mr. Webster, after making some inquirieis, said, " Wellit is certainly'
a subject for very grave consideration, whether roads for general travel cannot be
made as you propose." This remark, as Dr. Phelps says, in a recent letter, gave him
great encouragement and satisfaction.

C. Page 33'.

This Committee, who reported the first successful bill for aid to the Boad, consisted
of Messrs. Hubbeil, Lawrence, Eantoul, Whitieinore, Draper, Iidngley,'Iibud,'EoggleB
of I'all JttiVer, Bryaiiii' Parker, Coifiiij aid Briggs; '•

148 mSTOBICAi; UEUOIB 07

D. Page 39.

The approximate location: on the northern route, gave one grade of 82 18-100 feet
per mile, at North Becket. On the final location, this was reduced to 80 feet, as the
maximum grade on the route. When that part of the road was nearly graded, and
the bridge masonry finished, a seyere freshet raised the stream so much above what
had been known before, that it was deemed prudent to raise the grade for about three
miles to, from 81 to 83 feet, varying at different points. About 1^ miles is at 83 feet
per mile.

D 2. Page 40.

The early advocates of the Boad were not entirely unanimous, on the propriety of
constructing it beyond the Connecticut river. One gentleman who was on the first
Board of Directors, and who was continued as a Director for many years thereafter,
gave an opinion to the writer, that the Boad could not be carried beyond Springfield.
And on a hearing before a Legislative Committee, having in charge a petition of the
Company for aid, he expressed a doubt, whether it were worth while to provide
means for the road west of the river.

E. Page 42.

During the pendency of the bill in the Legislature for the first grant of State scrip,
a detailed computation was made, printed, and circulated, showing that a premium of
eleven per cent, on the sterling scrip (the then ruling price in London) together with
exchange upon it, with the addition of one per cent annually upon the amount of the
loan, from the income of business, and the whole put at interest, at five per cent.,
would, at the end of thirty years, the maturity ef the scrip, pay the scrip in full — the
Company keeping down the interest on the scrip. Thus eleven per cent on $2,100,-
000=$231,000, at five per cent, compound interest, would, in thirty years, pro-
duce ....-.- $998,360 53
One per cent, annually for twenty-seven years, (after the

Boad should be opened) at the end of the same

thirty years, would be, - ' - - 1,206,425 92

Amount provided to pay $2,100,000 $2,203, '786 45

F. Page 56.

In Senate, February 4, 1840.

Ordered, That the Joint Special Committee on'Bailroads be instructed to inquire
into and ascertain the following particulars in relation to the Western Bailroad Cor-
poration, viz : ^

i%rf. — ^The amount of expense for printing all documents or papers from January,
1836, to the present time, designating as far as practicable, the purpose and intent of

THE WESTERN RAILROAJ). 149

such documents or papers, with their cost, which have been ordered by any o£Ecer or
agent of said corporation. Also the number and expense of printing and forwarding
circulars signed by 'WiUiam Savage, one of a Committee of forty-six, chosen by said
corporation, and directed to the ministers of the gospel, requesting them to preach to
their people on the morality of railroads.

Second. — The amount paid or promised to any person or persons as counsel, or
otherwise employed by said corporation or any of its officers, to aid in obtaining an
act of the Legislature for a loan or loans of the credit of the State or scrip to the
said corporation, with the name or names of such person or persons, if any, and the
amount paid or promised to each person so employed.

Third. — ^What persons formed a combination and to what extent, on or near the
line of said railroad, to extort an extravagant price for timber and lumber, from the
corporation.

What amount was paid for wood-land by said corporation to break up such com-
bination. The name of the agent making such purchase ; of whom purchased ; the
amount saved to said corporation by such purchase.

Foiaih. — ^Whether said railroad, or any of its depots, are located on land purchas-
ed of any officer or agent of said corporation. If so, how long had such officer or
agent been the owner of said land before such purchase by said corporation.

Mfth. — Whether any person or persons receiving a stated salary, have been paid
such salary by said corporation, when they have been absent from the duties assigned
them for months on other business, and whether the corporation have hired others to
perform said duties or portions of them, in consequence of such absence.

Sixth. — ^The amount paid all officers or agents of said corporation, the name of the
person, the office held, and the business employed about ; whether stated salary, and
what per annum; what other allowance to such salaried officer, if any, and for what
purpose granted, with a detailed statement of suoh expenditures from January, 1836,
to January 1840.

In Senate, March 2, 1840.

• Ordered, That the Joint Committee appointed to investigate the affairs of the West-
em Railroad, be directed, to ascertain and report the whole expense and outlay on
said Boad, in each year since its commencement, specifying the separate items, partic-
ularly all sums paid for personal services, either as salaries or otherwise, and the
kind of services, for which any money has been paid.

In Senate, March 5, 1840.

Ordered, That the Committee on the Western Railroad be directed to report the
number of salaried officers holding the office of director in said Railroad Company,
and to consider the expediency of providing by law, that no salaried officer except
the president, be permitted, at the same time, to hold the office of director; also, to
consider the expediency of increasing the number of directors to be chosen on the
part of the State, or of lessening the number to be chosen on the part of the stock-
holders.

G. Page 59.

To the third enquiry, the Directors answered, that the agent having represented
that a large quantity of timber and lumber would be wanted, and when known, prices
would advance, and the Company be in the power of the owners, and recommending

150 mSTOBICAl MElfOrit OF

the purchase of good timber lands near'the Boad, the Board, by vote, gave him the
authority. TTnder this, the agent, himself, and through F. Morgan, of Palmer, pur-
chased six tracts for - • . . . $5,464 59
Before cutting the timber, advertisements were issued, for timber to be delivered,
and it was found, that it could be purchased one hundred miles up the Connecticut,
River, brought down and drawn out from Springfield, twenty or more miles by teams,
cheaper than offered on the line. The prices offered on the line were so nearly uni-
form, as to induce the belief of a combination among the bidders, to extort from the
Company.

The timber of the Company was cut by contract^ and produced, net, $5,691 02

The fand left (since sold for $6,000) was then called - - 2,115 00

The Engineer and Agent estimated a saving in controlling' other iiurchases of 5;600 00

, $13,366 02

A saving of - - - - $T,901 43

H. Page 59.

To the fifth enquiry, absence of officers from duty, the Directors made the following
answer : There was no such case. By contract with the chief or consulting Engi-
neer, he Vas to give to the Company only a portion of his time, for an agreed salary.

And in 1839, the General Agent being a member of the Legislature, and the Cor-
poration having applied for additional aid, he asked instructions of the Board, wheth-
er he should remain at Springfield, occasionally visiting Boston, Or attend the Legisla-
ture, with occasional absence on the line.

, The Directors decided that he should attend at Boston, while their Petition was
pending, as on former similar occasions. And the Directors further answered, that so
far as they knew, he, both at Springfield and Boston, attended to all the duties of his
office. T'he agent stated that his pay as a member, exceeded his expenses while at-
tending the Legislature, by some two or three dollars, and the expenses were not
charged to the Company.

I. Page 59.

Sixth enquiry — ^payments to all officers and agents, and extra jjlowanoes to salaried
officers, fro?a January 1836 to January 1840. In answer, the Directors submitted a
detailed schedule of several pages, of which the{ following is a summary:
In 1836, payments to Piesideat) Treasurer, Agent, Clerk

and assistant to Agent, . - . $6,025 20

Chief Engineer, Resident Engineer and Assistants, 12,144 53 — $18,169 13

183T, to President, Treasurer, Agent and Assistant, and

Clerk, - - - - $6,968 06

1831, to Engineers and Assistants, - . 16,940 90— $23,908 96

1838, to President, Treasurer, Agent and Assistant, and

Clerk, , . - : - - - $1,437 50

1838, to Engineers and Assistants, . - - 14,558 00 — $21,995 SO

Amount darned forward, '' - - - $64,014 19

T^B •W1:ST;EI11? ,BiJI40AD. 161

, .AniQ^nliljroijgJit forward, - - ■ „ $,64,0'J4 19

1839, to President, Treasurer, Agent and Assistant, and.

Clerk, . - . - $9,666 6?

1839, to Engineers and Assistants, - - 18,241 33— $?4,?08 00

Total four years, - - $88,982 19

(Per year average, $22,245 29.)

For the general expenses of organization,— rsurveys, and location of 116^ miles of
Boad, two or three thousand miles of trial lines run, and three years expenses of
officers, and engineers in construction.

J. Page 59.

On this subject of the agent's speculation in lands, as charged by Mr. H. Stems,
and Mr. E. Bwight, he submitted to the Legislative Committee, facts and explanations
of which the following is an abstract.

The preliminary surveys of Fessenden in 1835, at Springfield, were run to the river,
across the Worthington estate, a tract qf four and a quarter acres, extending from the
Hill, across Main street to near the river; then owned by a Springfield gentleman,
residing in New Tork. When, after the organization of the Company, early, iij 1836,
the question of location at Springfield was agitated, no other line had been surveyed
then; and as that was the only estate large enough for the road and depot, general
opinion at Springfield had early fixed upon that,, as the best location. The Agent was
decidedly of this, opinion, formed, long before he .thought of abandonidg his profes-
sion, and taking, the agency. On returning from the South, he happened in the store
of the owner of that estate, when he was informed by the owner, that a company of
gentlemen at Springfield, had applied to him to sell them that property on speculation,
and he added that the Railroad Company ought to have it for a depot. To an enquiry
if he would seU.it, he answered yes, for a depot, but not otherwise ; for he purchased
it for a residence. He then gave. the agent terms and a refusal for 'one week. The
latter returned to Springfield, went direct to Boston, got together a majbrity^of the
Board, and advised them to make the purchase, But they declined, being unwilling
to pledge themselves, even provisionally, in favor of any location. He then asked the
members of the Board if they were willing he should buy the estate, to hold it until
the Board should decide upon the question. The answer was, yes, we should be glad
to have you, but do not advise it. But before he came to any decision, the week limi-
ted for the refusal had passed ; when he ascertained that some speculators, who had
purchased other large estates near by, were negotiating for that estate.

The Agent then proposed to a neighbor, a zealous friend of the road,. Mr. Charles
Steams, to unite with him in the purchase, on condition that, neither should sell any
part of the property until the Corporation was provided for, and to hold it and offer it
to the Company at cost. The purchase was made by contract given for a. deed at
. about $11,000>' The speculators above named threatened the New .York owner with
suit for not dosing a sale with them; they having bought one hundred acres where
the road now runs, and aiming to control the location, as was supposed. The puTchaft%
ei-s offered the property to them at cost, if they, would hold it-Xor the Coi^oration on
the same terms. But this was declined. At the first meeting of the Directors, the
estate was offered to them at cost, and was so held for a long time.

152 mSTORIGAL MEMOIK OF

Oil April 4th, 1836, Mr. H. Stems met the Board and proposed to sell them for a
depot, a tract of land of about one acre on State street, in the meadow east of Main
street, and below the Court House, and he wished the Board to order a survey to it,
from the Fessenden line, across the Worthington estate. At the same time he com-
plained of the Agent for speculating in lands there, for a depot. The facts of tlie pur-
chase by the Agent, and his oSering it to the Corporation at cost, being explained to
him by Mr. Dwight, his reply was, that if he had known those facts, he should not
have said anything on the subject, and that he was perfectly satisfied. And yet four
years afterwards, he repeated the same complaint to this Legislative Committee, and
Mr. D. sustained him by saying to the Conunittee that the Agent wanted to get the
depot near his own lands.

The Board finally directed the location on a different line, and the Agent released
his interest in the Worthington purchase, to his co-purchaser at cost ; the deed of the
whole having been made to him alone. He made a large profit on the purchase.

K. Page 59.

In noticing this Report of Mr. Allen, it is due to several eminent citizens of
Worcester, to allude, briefly, to the important and efiective agency they had in initiat-
ing, and Carrying forward, measures in favor of this great thoroughfare, between
Boston and Albany.

The Honorable Levi Lincoln, from the time of his first .election in 1825, as Grover-
nor, and for a series of years, while he held that office, and while he acted as Chair-
man of the Board of Directors for Internal Improvements, let no opportunity pass, to
impress upon successive Legislatures, the importance of measures, for the construc-
tion — at first, of a Canai, and afterwards of a Railroad, from Boston, westward
through the State ; and as a means to effect this object, he repeatedly recommended,
that the State should embark in the enterprise.

The Hon. Emory Washburn, then of Worcester, was a member of the Legislative
Committee, of 1826, of which Dr. Abner Phelps, was Chairman, which made the first
report in favor of a Railroad to Albany. Mr. Washburn, as a member of the House,
in 1838, presented the petition of the Western Company, for the first grant of the
scrip of the State, — made an able report in its fovor, and sustained it in an effective
and eloquent speech.

In 1839, when it became necessary to ask further aid from the State, the application
was committed to the care of William Lincoln, Esq., of Worcester, who presented it,
conducted the examination of its merits, made the report in its favor, — sustained it
with all his powers in debate, and carried the grant triumphantly through.

And now in 1840, when Governor Eustis suggested the necessity of an investiga-
tion of the concerns of certain Railroad Companies, and when serious complaints
were made in the Legislature, against the officers of this corporation, and numerous
orders for enquiry were presented, intended to implicate them, the Hon. Charles
Allen, of Worcester, was chairman of the Committee on the part of the House, to
whom the whole were committed. He gave patient and devoted attention to all these
examinations for several weeks, and, on behalf of the Joint Committee, made a fnll
report, with a complete vindication of the Company and all its officers.

THE WESTERN EAILROAD. 153

K 2. Page 63.

Mr. P. P. F. Degrand was an ardent and devoted friend of the 'Western Railroad
enterprise, from the earliest efforts for the organization of the Corporation, to its final
completion ; and indeed, to the day of his death. In aU the financial plans, he was
the constant counselor of the Treasurer ; and no one was more engaged, or more effi-
cient, m promoting the measures, for procuring the several grants of aid from the
State. He often took out of the market, large amounts of the stock of the Company,
and held it, frequently, at considerable pecuniary sacrifice; and when, in 1842, contra-
ry to the general understanding of the stooltlioldeTS, assessments were unexpefctedly
lai(i, to the amount of forty per cent., at short intervals, it was understood that Mr.
Degrand sustained a considerable loss to meet those payments. Ardent and enthu-
siastic in his views of the prospective success of the Road, he was exposed to much
ridicule, for the extravagance of his predictions ; but the result has long since shown,
that, in most respects, his anticipations have been mor^ than realized.

L. Page 63.

The Committee annexed to their report, a table showing the residences of the Stock-
holders, the number in each place, and the number of shares in each | of which this
is an Abstract:

In Boston, 1095 Stockholders, owning 14,'?29 shares.

Charlestown, 42 " " 288 "

Roibury, 43 " " 307 "

Springfield, 209 " " SIT "

New York, 11 " " 111 "

•JS other places B49 " " 3,148 "

1949 " " 20,000 "

There were 1652 persons owning from 1 to 10 shares each.
126 " " 10 to 20 " "

125 " " 20 to BO " "

29 « " 60 to 100 " "

11 " " 100 and upwards shares each.

Senate Doc, No. 35, 1841.
On call of the Legislature, there were reported January 20, 1838, 2331 stockhold-
ers, viz. — ^in Boston 1330, and the residue in fifty other places.

Senate Doc, No. 28, 1838.

M, Page 65.

From the New York Standard of January li^ 1812.

"We cut the following from a Utica paper. It shows us in what estimation the
■Western Railroad is held in the center of the State — ^how accessible, residents there
now regard the city of Boston, and all New England-7-how ready they are to go
there for travel and for trade, and exhibits to us their opinion as to the probability
of the products of the Western part of this State, and of the Western States, pour-
ing into the Yankee city. We wonder if they are blessed with any Mr. 'Front
20

154 HISTORIOAl MEMOIR OP

Street ' in TTtica 7 If so, how he must mourn, in saokdoth, to see all this ' tapping '
going on. New England ia ' tapped,' and Yankee notions, importations, manufac-
tures, sea products, Ac, &c., are flowing out, in inexhaustible exuberance, to travel
over the iron/awe^ through Utica, to the mighty West. Lake Brie is a great natural
tap into, and out of the illimitable "West.

" The Brie Canal, and its parallel line of Railroad, ' taps ' into and out of the craft-
crowded Lake. Millions of tons of freight and passengers, will come through these
'taps,' — rush down the valley of the Mohawk, ixmgmUng, by the Albany contract
and the 'Westem Raihoad, into the land of the Pilgrims; diffusing life and wealth and
joy, throughout the line from Buffalo to New Bedford. What admirable tapsters
these Yankees are. Pity Boston had not, with the keen-sightedness of Mr. 'Front
Street,' discovered the ruinous policy of 'tapping,' before she made that huge bung-
hole in the Hudson River at Greenbush — ^through which, (unless New York taps
Lake Erie at Dunkirk) all the trade, freight, travel and opulence of the West will
pour — ^running up the ' steep grades ' of the Berkshire mountains — and sweeping, at
last, into the ' Queen city of the Bast.' There can be no ' Front Street ' in Boston."

From the Utica Daily News.
"'WESTERN RAILROAD.

",' A new era commenees vrith the opening of the Great Westem Railroad which con-
nects Albany and New Bedford, New England, the birth place of many of us, and
the home of many of our Fathers, which we have been accustomed to regard as far
removed from us, has, by this magical operation, approximated to our border. The
influence of this road upon New England and upon New York can hardly be estimat-
ed. We have hitherto been strangers to the people of Boston, and they to us. We
saw but few of her citizens here. They saw but few of our citizens there. A sum-
mer tourist, would occasionally, visit the 'Yankee city,' but he would regard it
with almost as much curiosity as a city of Europe. To have visited Boston was no
inconsiderable feat. But the Capitols of the Bay and of the Empire State, now lay,
as the Boston Mayor wittily expressed it, ' cheek by jowl.' Visiting and trading
calls will frequently interchange. Let our friends down East, look out for that big
Serpent off Nahant. An Oneida bullet wiU not- be long in finding its way through
his alligator hide. Take care, Mr. Serpent, take care.

" ' When the Frost-King has swayed his ioioled sceptre over the congealed waters, we
have held ourselves to be as far removed from the city of New York, as Buffalo was,
when the Summer-King unlocked his avenues of water — at this time the cheapest
and most expeditious route from the center of the State to the metropolis of the State,
requires us to pass through two other States and to travel one hundred miles out of
the way. Boston will now be our sister depot. Throughout the year, now, we stand
upon the very Sea-board.

" ' The Yankee travel and notions will pass through our city for western New York,
and for the westward of New York. Boston may now double her importations, and
her manufacturing of wooden nutmegs, and bass-wood cucumber seeds; and of all
other knick-knacks, that render life agreeable. Bring them on gentlemen, bring them
on. Here is a westem world now open to you Yankees, which all your ingenuity
and industry cannot fllL Give us your fine oysters, cool and racy from the shell.
Pull us out, after Ike Walton's most approved plan, some of those thumping fresh
finny chaps, that are darting about in your deep waters. How they will wag their
tails in astonishment to find themselves in Utica; — a place, I dare say, they have

THE WESTEEN RAILROAD. 155

never even read of, or heard broaclied in conversation by any of the old gray-headed,
grandfather fishes thereabouts. They would feel like a flsh out of water. Think of
the delicious reUsh — How our mouth waters. The idea makes us as hungry as, a
perusal of Charles Lamb's inimitable chapter on roast pig. Waiter, bring us a dozen
raw oysters, and two more New Bedford candles.

" ' We can now go, comfortable p.Ugrims, to the place where our pilgrhn fathers landed.
We can stand on Bunker Hill, consecrated by pure American blood, and immortalized
by unflinching American valor. We can tread New England's classic soil, and if
need be, pour in an army of sturdy boys to help our Maine friends on the Aroostook.

" 'Tankees, we will supply you with whatever you desire — Wheat will ye have ?
Our ground grows it, and our mills grind it. Salt ? It gushes up to us from vast salt
mines far below the surface. Cracow is fresh compared with them. Lumber ? We
will make the rocks of old Berkshire tremble with the weight of millions of feet,
excellently sawed by Avery's rotary steam engine — or, if you 'prefer it in the rough,
we will send you masts for a seventy-four.

" ' Success to the connection of New England with the West, and of the West with
New England. L. R.'"

N. Page 66.

The New York Standard, of January 12, 1842, in a long article on the subject, says
of this remonstrance, that, "in January 1839, a large number of the most respectable
men in Albany, protested against the subscription of $650,000, by that city, to the
Albany and West Stockbridge Railroad." In their remonstrance, these gentlemen
object among other things, " that the citizens of the city of New Tork, may regard
the construction of the Albany and West Stockbridge Railroad, as an imMsguised
effort, on the part of the citizens of Albany, to direct the Western trade from ow commer-
cial metropolis to the city of Boston ; thus bringing the route of the Xew TorJc and Al-
bany Eai¥oad in direct collision with said route, to the certain ruin of the former
Railroad." The remonstrance says, " as citizens of the State of New Tork, our feelings
remit at, and our judgments unfeignedly deprecate, such untoward and unnecessary
results as unjust to the commercial capital, as they would prove disastrous to the poWA-
cal capiidl of the Empire State."

"We therefore respectfully, but earnestly pray the Legislature, to refuse to grant
the power apphed for by the Corporation aforesaid."

"John I. Bbekmaw, Bakent Blbbkee,

Tobias Van Sohaik, John Tan Zandt,

J. S. Van Rensselaer, Baebnt SAtrarDBES,

Joseph HANiTBii, John R. Bueeeeb,

K. K. Van Rensselaer,^ and others."

0. (accidents) Page 68.

I. At West Brookfield, in a deep snow, a man stopped his team on the track, at a
road crossing, and was run over and killed; and as the Committee say, without fault
of any one connected with the road.

156 HISTORICAL MBMOm

2. At Springfield, in December 1840, a powerftil. engine, with a long train of empty
cars, was approaching Springfield from the east, with orders to the engineer, to divide
his train at the head of the plane of sixty feet. The track was so slippery, (in De-
cember,) that, on reaching the plane, the engine got so much headway, that the brakes
coold not control it, and the engine and train descended with great velocity, carrying
the engine tlirough the brick wall of the engine house, and killing four employees of
the Company.

The Committee were of opinion, that there was then a deficiency of brakes on the
freight cars, but at the date of their report brakes had been attached to all of them.
At the time of this accident, the freight cars of the Worcester Company had no brakes,
and some of them were in this train.

3. The accident at Chester, was by a collision of two passenger trains meeting at
full speed, on a single track, on October 5th, 1841. It was the day after the road was
opened through from Springfield to the State line. The train going east was fifty min-
utes behind time at Chester village ; and, by the printed standing rules of the road,
should have waited for the up train. But, by some strange misapprehension, "Warren,
the conductor, pressed forward at great speed, and lost his life. In addition to the
standing rule above, the Chief En^eer sent by Lee, the conductor going west on the
morning train, an order to Warren, if his train was delayed, to wait one hour at Pitts-
field, behind his time, and keep one hour behind all the way. This paper Lee, on
meeting Warren at Pittsfield, omitted to deliver. Besides Warren, there was one death
of a child, a number of fractured limbs, and other injuries to passengers more or less
serious. , '

A Committee of Directors made an investigation at Springfield and requested three
respectable citizens to attend, and hear the evidence and report the facts. Their Re-
port was laid before the Legislative Committee; and the latter say, they "are not sat-
isfied, from investigations made, that the Directors have hem juMl/y cha/rgedbU with amy
neglect of duty wMch lias ea/used these accidents."*

4. At a fourth accident, at Elchmond, the train ran off the track in a deep cut, and
the engineman and fireman were killed. The cause could not be ascertained.

tSen. Doc. £6,1842.

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158 mSTOEICAl MEMOIR OP

Q. Page 82.

The Mrumeial exhibit in ths Annual Report of February, 1845, was presented under
the following heads:

L Chartered Capital. U. Nbmindl means provided for construction. HI. Assets
actually received from nominal means, and available for construction. IT. Debts con-
tracted for construction. Y. Amount expended for construction. YL Sinking funds
for payment of debts.

I. The Chartered Capital, was .... $3,000,000 00

n. The Nominal means,— 1. capital, - - - $3,000,000 00

2. scrip or sterling bonds of Massachusetts, - - *3,999,555 66

3. bonds of the city of Albany, - - 1,000,000 00

Total, ..... $T,999,655 66

m. Assets realized from do. available for construction.

1. chartered capital, . - . $3,000,000 00

2. Massachusetts State scrip sold, • . - 3,861,lt6 61

3. proceeds of Albany bonds,f - - - 890,425 66

Total realized, .... $7,151,601 16

IV. Debts contracted for construction.

1. Massachusetts scrip at $4 80 per sterling pound $3,999,666 66

Add exchange for do. on England, - . 319,964 44-$4,319,620 00

2. Albany bonds, .... $1,000,000 00

Total construction debt, January 1, 1845, (funded) . $5,319,620 00
v. Amount expended,

1. on the Western Road (in Massachusetts) . $5,919,260 96

%. on the Albany Road (in New Tork,) - - 1,T66,941 62

Total expended to December 31, 1844, • $7,686,202 41

Yl. Sinking Funds.

1. Massachusets fund, value January 1, 1846, • - $239,461 00

2. Albany fund, value January 1, 1845, - . 149,759 17

Total applicable to debts, January 1, 1845, - $389,210 17

B. Page 86.

Abstracts of answers to questions of the Committee of the "Worcester Company on
the subject of the vmion of the two Soads.

1. By the 'Western officers.

Length of 'Westem, 117 miles 4248 feet, Albany, 38 miles 1180 feet, making 16S
miles 148 feet.

• Of the four millions of scrip authorized £100 was never issued.

f $1,000,000 less ten per cent, required to be paid to Sinking Fund, ■ • {100,000 00

And less loss on sales, ....... 9,674 35

THE WESTERN RAILROAD. 159

length of turnouts available for second track, 8-26 miles.
Cost to December 1, 1845, Western, - ' $6,995, '799 11

Albany, - - 1,169,105 82 $1,164,905 53

Capital stock all paid in, - - - - 3,000,000 00

Increase of capital stock voted, but not sold, or used.
IVnda provided and realized for construction, - - $1,191,194 36

Balance of funds provided and unexpended, - 26,888 83

Value of real estate not wanted for the road, - 11,500 00

Materials on hand, - ... - 11,409 00

Sinking funds, December 1st, Massachusetts, . $252,488 91

Albany, - 151,883 01 $410,311 92

Engines — passenger 16, freight 15, gravel 2, - . . - 32

Passenger cars, first class, equal to four vyheeled, - ... 39

Passenger cars, second class, post office and baggage, equal to four wheeled, , 24
Ereight cars, equal to four wheeled, .... 136

Several engines require extensive repairs. The Superintendent says $6000 will put
fhem in good order; and $2600 to 3000 will restore passenger and freight cars to good
order.

Funded debt due from 1868 to 1881, - - $3,999,656 56

Albany bonds due 1866 to 1816, • - 1,000,000 00 $4,999,556 56

Receipts for 1845, about $810,000. Expenses 365,000.

Repairs of road and bridges have been more thorough than in former years. The
Superintendent reports that " the Roadway has been maintained in an order and oondi.
lion, I believe, not excelled by any of the New England roads. The bridges and mason-
ry are in good general repair. An examination shows that thirty to forty tons of iron
only are necessary to supply defective rails. Buildings are all in good condition, and
will compare favorably with any of our best roads."

The Treasurer reported due to the Company, - . $661,182 08

due from the Company, - - 153,086 32

2. Answers from Worcester Company.

Capital stock $2,900,000 ; further authorized $100,000— $3,000,000. Cost o£ con-
struction; road, $2,996,043 11; engines and cars, $263,969; materials on hand, $12,->
141 50.

length of road and branches, 51 6-6 miles, double track, 44 2-3 miles. Rents of
property leased, $11,066. Due Corporation, and cash on hand, $93,130 19. No re-
served fund, depreciation being made good by new rails, engines and cars, rf»arged to
income.

Value of real estate, supposed not needed, - . - $115,311 00

Amount of indebtedness, including unpaid dividends, . 369', 999 12

Amount earned in 1845, $504,468 18 ; expenses, - . 261,848 64

The Superintendent says the road is in good order. First track good as ever as
to use ; iron requiring renewal, five or six miles per year ; sleepers all renewed since
1840. Second track in perfect order, except seven miles laid in 1839, where sleepers
were partly renewed, and the balance to be renewed next year.

Bridges nearly all lately renewed at charge of repair account. Buildings ample and
in good condition ; engines and tenders worth fuU three-fourths cost, if now purchased.
Passenger cars ; $1200 would make as good as new. The twelve old cars to be re.
placed by four eightwheeled, for $6000. Freight cars in good average condition, kept
good by new ones in 1844, charged to repairs.

160 mSTORICAI MEMOm OP

S. Page 87.

Abstract of the address of the President of the Worcester Company, on the sub-
ject of the Union of the Eoad, and the answer of the Commissioner of the "Worcester
Company to the same.

The address concedes that the consolidation would probably lead to some retrench-
ment of expenses, but it is not apparent, that there would be any material reduction
of officers and agents, or diminution of their duties, not " of sufficient power to throw
into the shade the more important question of the reasonableness of the terms pro-
posed." The ferms, he states, are that each share in the Western was entitled to one
share in the new Company, and each five shares in the Worcester have six in the
new Company, and, "that the reasonableness of this, depends on the comparative
value of the two properties. The Western Committee say that here is an error, or
omission running through the whole of the address. The Joint Committee proposed
an aUemaiive, that each stockholder in the Worcester Company might take in the new
Company six shares for every five in the old, or $120 in cash, for each share held,
— and this was $6 per share above the market price of the Worcester stock — not, as
the address claims, " a great sacrifice on the part of the Worcester stockholders."

The address maintains that the Worcester Road and property Is fully equal in value
to the capital of three millions, has a double track throughout, a net income sufQcient
to pay two dividends of eight per cent., with improving business — and that, with
the charge to income, of expenses for depreciation, there is a fair prospect that the
amount of business and profit will be maintained, &c. -

As to the Western Bead, the address says it is represented by a capital of three
millions and a funded debt, making the entire cost of road and equipment at $T,'764,-
905. It claims that from this should be deducted a sum to make the sleepers, rails,
bridges and buildings, equal to cost, — say, ... $100,000

That the engines and cars, being set down at cost — to bring them to present

value requires a deduction of - - - - 200,000

$300,000

To this, the Committee of the Western, answer, that " the road and its equipment
are well worth the amount of their cost, and they could not then be built for a sum
much, if any, less — that a large part of the iron rails, were purchased at rales, not
much over half what they would now cost — making a difference of half a million of
dollars. That other elements besides mere cost, were to be considered, in estimating
the intrinsic value of a railroad. They instanced the Albany Eoad, as the key to
the Western trade, both for the Western and Worcester Roads — the good will of the
traffic, the accustomed business of the Western— the connecting Roads in the valley
of the Connecticut river — the security of the Western by its charter, from interfer-
ing or parallel roads — and the long loan of four millions at five per cent, interest.

As to d^redatton, they refer to the letter of their Superintendent, that the road, en-
gines, and cars, were aU kept in good order, — ^the road wanting only thirty or forty tons
of iron, and the engines and cars some ten or eleven thousand dollars in repairs.*

The address further says that the Western Road had but a single track, with sidlings
and turnouts at stations, and cost $43,000 per mUe, the same as the Worcester with a
double track throughout.

To this the Western Committee answer, that, " although but a single track is laid

* See Appendix B.

THE WESTERN EAILEOAD. 161

down, all the masonry for bridges and culverts, (except the Connecticut river bridge,
where a second track is unnecessary), all the rock cuts, with trifling exceptions, and
heavy embankments, and very much of -other parts of the road, were originally con-
structed and graded for a double track.''

The address then submits a detailed examination of the finances of the Westenx
Company; the debts, sinking funds, income, expenses, dividends, Ac, &c., through all
which the answer of the 'Western Committee follow and controvert. And the address
doses in estimating the then value of the three millions of 'Western stock at $2,-
562,649.

Appendix P is a table of the prices of the stock, and the amount of dividends of
the two Companies, from 1845 to 1862, inclusive. Prom which it appears, that aver-
aging the highest market prices of the stock each year for eighteen years, 1845 to 1862,
inclusive, the highest price of stock of the "Worcester Company, monthly, aver-
aged ....-- $108 17-100 per share.

The highest price of stock of the "Western Company, monthly,

averaged, .... 108 35-100 "

The lowest prices of the "Worcester Company, monthly, aver-
aged ..... 91 "

The lowest prices of the Western Company, monthly, averaged 96^ ■"

For the last ten years, 1853 to 1862, inclusive, the highest prices

of the Worcester, monthly, averaged
Western, - ' -

And the lowest of the Worcester, ....

Lowest of the Western, ....

For the last eighteen years, the average dividends of the Wor-
cester, were .....

Western, ......

For the last ten years, 1853 to 1862, inclusive, average divi-
dends of the Worcester, were ....

Western, ......

21

104 85-100

109 40-100

91 52-100

96 55-100

1 28-100

1 39-100

6 95-100

1 55-100

162

mSTORIOAX MEMOIR OF

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THE -WESTERN- RAILROAD. 163

T. Page 90.

■W-ESTEEN Railroad Opwcb, >

Springfield, Jan. 3, 1846. J
Jb (he Stockholders of the Western Rail/road Corporation :

Ten years will have passed to-morrow, since the organization of your Corporation.
During tlie Whole of that period I have been in your service ; and with the exception
of the year 1843, I have actively devoted all my time, talents and energies, to your
interests. In these ten years, the Corporation has passed through many vicissitudes ;
and I, in common with other friends of this great enterprise, have at times been ex-
posed to severe trials, and to intense anxiety, lest it should prove a failure. I trust
all the occasion for such anxiety or trials has passed away ; and that the finances and
business of the Company are now placed upon such a substantial basis, as, with prop-
er care and supervision, will rank this among the permanent dividend paying stocks.

Under these circumstances, and with these prospects — after so long, so laborious,
and I trust I may say, so successful a tour of service, it will not be deemed presump-
tion in me to suppose, that some of my partial friends may look to a continuance of
my official connexion with the Corporation, at and after the next election. To such
and indeed to all, I beg leave to say, that private considerations, arising in no small
degree from the state of my health, and the absolute necessity of relief from the pres-
sure of business, entirely forbid my continuance at the Board of Directors, and that I
respectfully decline being a candidate for re-election.

I cannot thus dissolve a connexion of so long continuance, without expressing to
the Stockholders my heartfelt thanks for their uniform confidence and unwavering sup-
port. And it is due to the several Boards of Directors, under which I have in early
stages, held office, or over which it has been my pleasure to preside in later years, to
acknowledge their habitual courtesy, and their cheerful and efficient aid, in the duties
devolved upon me. And I am constrained to improve this opportunity to offer one or
two suggestions upon points of great practical interest to the stockholders. I do this
the more readily, because they are on subjects, upon which I have had the best oppor-
tunities of judging from long experience and observation.

Independent of the " running of the road " — the care of the trains, the supervision
of the trafiSc, and of the repairs of the road and its equipment, and the care of the
large force of operatives employed in these several departments, duties which properly
devolve upon the Superintendent, and absorb most of his time, — there is a large class
of duties of great importance to the Corporation, and on the proper discharge of which
their success is vitally dependent. Of these, the direct connexion, and interchange of
business, already with four Railroad companies — soon to be increased to eleven or
more — ^the arrangement with them — and for ourselves, of tariffs of charges, and of the
variations required in them by increasing and active competition — the stated business
at the meetings of the Board, and the preparation of reports and documents for the
Directors — the mail contracts, and the detail of mail arrangements — the yearly and
pressing business before the Legislatures of two States, the Reports required by law
to be made to both, the preparation for, and attendance upon, the trial of suits in New
York, Albany, and in all the counties on the line in this State, with a general supervi-
sion of every department of service, — all these indicate a mass of duties heretofore
and now devolved upon the President of the Corporation. "With how much success
or fidelity these, or any duties, have been discharged, it is not my purpose to say.

But if there is any one principle or rule, regulating the administration of the affairs
of the Company, which, from daily and habitual experience and observation, has been

164 HISTOEICAL MEMOIR OP

impressed on my mind more indelibly than any other, it is that the interests of the
Corporation imperatively demand that the President — the head of it — should be an
active executive officer, required to reside upon the line of the road, and to devote all
his time and faculties to the service of the Company — that the necessary authority
should be given to him, and the appropriate duties freely imposed upon him. Upon
this subject I cannot doubt. And ■whatever changes may now or hereafter be made,
I have an entire confidence, that the administration of affairs will settle down per-
maritly upon the necessity of the rule which requires the head of the Company to be
an active officer, devoting his whole time to their service. This is a concern of im-
mense magnitude — of great detail, and heavy resgonsibilities. With an outlay in
construction of near eight millions of dollars, and a gross income already of eight
hundred thousand — with business and duties, to hardly the half of which have I al-
luded, too much care cannot be taken to ensure an energetic, faithful and economical
administration of its affairs.

And I trust I may, without presumption, be permitted to allude to one other sub-
ject intimately connected with this. The Directors have an authority and a supervis-
ion above, and paramount to those of the Executive officers. ' It has always appeared
to me essential, that a considerablet portion of the Board should be located upon, or
near the line of the Eoad and in the different counties. They are advisory officers,
not only collectively when in session, but individually, and as members of standing
committees. Practically, they can Jsnow Kttle of thft administration of so long a
road, when residing more than forty miles from any part of it. In fact also, I presume
nineteen-twentieths of the stockholders live in Boston or its vicinity, and they of
course cannot be relied upon to observe the wants or the deficiencies of the service ;
and if they could, they are without authority.

It has also happened, that for some years past, not more than two out of nine Di-
rectors have had their residence within about forty mUes of any part of the road ;
and one of these has been the President. In this state of things it has not been pos-
sible for the President or Superintendent to consult with even one Director, without
going in one direction fifty, and in the other near one hundred miles from the place
where the principal business is done, and the large disbursements are made.

It is enough to allude to this state of things, in addressiag practical business men ;
and if, on reflection, they think this organization, for so long a road, is unobjection-
able, they will continue it. If, on the contrary, they believe its efficiency can be bet-
ter promoted by distributing the watchmen along the line, I doubt not they will, in
due time, apply the proper corrective.

But I am trespassing, and I will only add, that with my best wishes for the future
success of an enterprise with which I have been identified for so great a fraction of
life thus far, it wiU be my purpose and my pleasure to do all in my power to promote
its prosperity, and increase its usefulness, in whatever situation I may hereafter be
placed. I am most respectfully,

and gratefully yours, GEOR&E BLISS.

THE WESTEEN RAILROAD.

165

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V. Page 94.

PASSENGER DEPOT AT WORCESTER.

The Charter of the 'Westeni Company in 1833, procured and drawn up by the Di-
rectors of the Worcester Company, in their individual nameS, authorized the construc-
tion of a Raih-oad "from the western termination of the Boston and Worcester Rail-
road" to Connecticut river, &c The latter road, though not then completed, was designed
to terminate for the passenger depot, near Mam street — the freight depot to be at
Washington Square, about one-third of a mile farther east. If the Western joined
the Worcester at Washington Square, the road might proceed thence westerly, in a
straight line ; but to unite at the Worcester passenger depot, required a serious de-
flection from a straight line, and the distance to be extended. In either case, the
freight depots of both roads were to be at Washington Square.

To obviate any question as to the right of the Western to connect at Washington
Square, the County Commissioners, on application, after public notice, authorized the
union at that point. The Report of the citizens of Worcester, in 184T, says, their
Committee were led to believe, that had the Commissioners supposed the arrangements
for the location.at Washington square, were more than temporary, the authority would
not have been granted.

The writer, then the General Agent of the Western Company, was the only person
connected with that Company, who had any direct agency in the proceedings before
the Commissioners, and having been abroad in 184'7, he had no knowledge of the
proceedings of the citizens of Worcester, in that year, until the present writing (in
1862,) and this, is the first intimation to him that any one supposed those proceedings
were for a temporary object. If carried out by a legal location — as they subsequently
were — such location could not be changed, except by the legislature, or by legal pro-
cess. The authority of the Commissioners was npt deemed necessary, but was ob-
tained from extreme caution.

The officers of the Worcester Company were very desirous to have the location of
the passenger depot of the Western, in connection with theirs near Main street. That
.Company owned all the available land at Washington square, and offered to sell to the
Western two acres there for their freight depot, but declined to part with any for the
jpassenger depot.

The, question of this location was long pending before the Western Board. As ear-
ly as August 1836, it was referred to a Committee, who examined several plans or
modifications for the location of both passenger and freight depots near Main street.
The Committees of the Worcester,- Western, and Norwich Companies, had repeated
meetings at the Worcester passenger depot. Various plans were drawn up, and sub-
mitted for the- accommodation of the three Companies; and estimates of expense were
made, upon the several modifications. The Worcester Committee offered a plan with
estimates, to which the Western Committee assented, provided their Board would agree
to locate at Main street; but to this plan the Norwich Company objected. The latter
then proposed a plan with estimates, which the Western Committee approved, under
the same proviso, but to this the Worcester Committee would not consent.

All these proceedings and facts, with the estimates in detail, upon the several modi-
fications of the plans, were reported to the Western Directors by their Committee,
January 9, 1831, with a recommendation to estabUsh both merchandize and passenger
.depots, at Washington square ; with the location of the road in a direct line westward.
The subject was postponed for consideration. The Report was finally accepted, Janu-

THE ■WESTERN RAILROAB. liS9

ary 20th, ISZl, and the depots and line of the Road ordered to be established accord-
ingly. In 1838, more than a year thereafter, the ■Worcester Company sold to the
■Western, the land they then needed for both depots. Since the application of the
citizens of 'Worcester for a change of the ■Western passenger depot, the establishment
of the junction depot, at or near the crossing of the ■Western, Norwich and Providence
Roads, affords the desired accommodations to the citizens of ■Worcester. And the ter-
minal station of the Providence Road is considerably removed from the depots of all
the Roads entering ■Worcester.

W. Page 94.

STOCKHOLDER'S MEETING OP THE WESTERN RAILROAD.

Pebruary 9, 1848.
" Resolved, that the warm and grateful thanks of the Stockholders of the 'Western
Railroad, be, and are presented, to the "Hon. Josiah Quinoy, Jr., for the untiring zeal,
unshrinking courage, distinguished ability, and great practical usefulness, which he
has devoted to the interests, and to the honor of the stockholders of the "Western
Railroad, during the last twelve years; embracing periods of great danger to the very
existence of the enterprise ; — of an enterprise, the success of which has led, and still
leads, to consequences of the highest import to the stockholders of the "Western Rail-
road, to the dty of Boston, to the State, and to the great cause of internal improve-
ments throughout.the Union ;— of an enterprise, the failure of which would have chilled
the hopes, and blasted for many years, the now cheering prospects of the friends of
internal improvements all over the United Statea"

X. X. Page 97.

Previous to his death, Mr. Gilmore had prepared a long conmiunication to the stock-
holders, to be presented on the occasion of his declining a re-election. This, the Di-
rectors published in connection with the sixteenth annual Report — January, 1851.

In this document, Mr. Gilmore, in alluding to the defalcation of Addison "Ware,
says, " he was regarded by all the Presidents who preceded him, as one in whom im-
pUcit confidence might be placed," . . "and that, at the very tune they were eulogizing
him," . . " he was making improper use of the funds of the Corporation," — that he
"was handed down to the present administration, endorsed by all the preceding,
wiih a portion of the late defalcation then vpon his shoulders."

Mr. Gilmore, was first chosen President, as successor of the writer of this memoir,
in February, 1846. At his request, he was relieved from the duty of a personal ex-
amination of accounts, and a standing Committee on accounts was appointed. No
suspicion was entertained in reference to the Cashier's accounts, until early in 1 860.
A most searching examination of his books and accounts was made during that year*
by an experienced accountant, who had the personal assistance of the Cashier. The
Committee of Directors, who had charge of the subject, say in their report, that Mr.
"Ware admitted that the books were right, and the cash balance was on hand December
Ist, 184'J.

Mr. 'Ware always affirmed that the difSculty commenced after that date. At that
time a committee of Directors visited Springfield, and examined the books and vouch-
22

170 HISTOEICAL MEMOIR OF

erB, and marked them correct. Mr. Warren, the accountant, had long kept the books
of the Treasury, in Boston, and had thus become much acquainted with the accounts
at Springfield, and other transactions relating to the Company's affairs. He, acting
under the direction of the Committee, of 1850, confined his examination to the trans-
actions from December 1, ISil to May 1, 1850. The amount of the defalcation thus
Shown was acknowledged by Mr. Ware to be correct; and the Committee settled with
him, taking his property, and gave him a discharge.

There is not a title of evidence, that there was any deficiency prior to December
184T. Indeed, this is clearly acknowledged by the fact, that no examination prior
to that time was deemed necessary, and the Standing Committee, on accounts, in De-
cember, 1847, had certified to the accuracy of the hooTcs and accownts-at that date. There
is therefore no foundation for the assertion, that the Cashier " was handed down to
the President of 1846, by his predecessors, with a portion of the defalcation upon his
shoulders." The defalcation commenced after the election of February, 1846.

In the same communication, Mr. Gilmore, states the price of the stock of the Com-
pany January 16, 1846, at 85, — and that of the Worcester Company, at 114. On
January 1, 1846, the stock of the Western was at 91^, and that of the Worcester, 116^.
The account of stock sales in the middle of January, is not at hand.

X. Page 100-101.

ABSTRACTS OF PART OF THE REPORT OF THE COMMITTEE,
Made in February 1852, on the subject of the system of accowntaUKty, and to ascertain

the value of pi-operty, &e.

In estimating the value of the property, the Committee assume the cost as stated on
the books of the Company, less its depreciation; assuming an annual expenditure
from net earnings thereafter, to keep it in good serviceable condition, except as to rails,
they take the costs of renewal, at the then market price.

1. Graduation a/nd Masonry. The Committee consider this greatly improved, in
comparison with its condition in years immediately following its construction.

2. Wooden Bridges. The whole amount charged to these on the books was $231,-
996 26, as stated in the reports to the Legislature. But their examination fixes the
actual cost at $192,148, depreciation $11,267 ; that renewals for five years, will re-
quire an expenditure of $81,587, on an average of $16,317 60.

3. Superstructwre, including iron, and exclusive of ties. As to rails, the committee
in addition to personal examinations, had resort to the record of rail^enewals on the
Western Road, and the quality of the iron as disclosed by its use.

Length exclusive of sidings, 156 miles, 46 miles of double track; of this 41| miles
had been renewed, all in the original track, after an average use of ten years ; (none
less than nine). The Committee judge the residue of that track, 114J miles, "after a
careful inspection, will be serviceable for trafBc a further average of eight years—
^giving twenty years as the mean durability of this 114^ mUes."

As to the 46 miles of double track, it had been down three to four years. Sixteen
miles of American iron, showed " great inferiority of quality," and they assumed a
mean service as of the 41-i miles above, say ten years. " The residue being English
iron, promised a term of usefulness about equal to the 114^ miles above, and they as-
sign td it the same rate of depreciation. By minute computations, the Committee
arrived at the result^, that the average annual expenditure for maintaining the rails of

THE "WESTEEK EAILROAD.

171

the original single track, will be $19,750; and, bringing the results together, they say,
that for the next ten years the income of the road will be taxed 'per anmim, for origi-
nal single track, ' - - - - - $31,200
Forty-six miles second track, - - - 8,040

$39,240

For frogs, fastenings, chairs and spikes, the Committee value them as kept fully
equal to original cost.

Cross Ties. These have been entirely renewed, once since opening the road, and a
second time to about ten per cent.

For six years, between December 1845 and December 1851, renewals as follows :

1846,
1847,
1848,

35,000
85,000
65,000

1849,
1850,
1851,

Average 50,390 per annum.

28,245
50,198
38,914

302,367

The average life of ties on this road, the Committee estimate at six and a half years
and as the ties of the entire road, and an additional number of 27,000 have been re-
placed in six years, and aE charged to income, they allow nothing for depreciation.

Station Buildings and Mxim-es. The Committee estimates the depreciation of the
old passenger house at Springfield, (before it was burned), at $10,000; and other build-
ings on the road at $8,100, making $18,100.

Lands and Fenfxs. In Massachusetts, generally, the grantors of the roadway as-
sumed to erect and maintain fences ; and though considerably dilapidated, it arises
from neglect of abutters. In New York, the Company are bound by law to build and
maintain fences, and the Committee set the depreciation at fifty per cent, or $12,160.

LocomoUves. The whole amount charged to Locomotives was $672,739 28. But
as per the annual report of Directors for 1849, the sum of $310,739 28 had been-
transferred from interest account (where it was placed from income in 1842) and cred-
ited as depreciation to engines and cars account — and $6,000 had been credited to the
same account from income in 1851 — ^the sum to debit of engines was at the time of
the Committees Eeport, $362,000.

The value of the Locomotives was appraised by Messrs. " Holmes, Hinckley, and
George S. Griggs — men of high repute for judgment and skill, in the manufacture, and
use of locomotives, at $395,100," and this valuation the Committee assume, after a
personal examination; making an increased value of the locomotives, of $39,100, of
course no depreciation was allowed.

Passenger and Baggage cars. The Committee think they are fully worth the amount
with which they are charged in the construction account.

Merchandise cars. The Committee think they required an expenditure beyond or-
dinary repairs of $48,704 34.

The Ferry Boat and Wharf, at Greenbush, not requiring extraordinary expenditure,
are not charged with depreciation.

Sinking Fimds. An abstract of this part of the Committee's Eeport ia deferred in
connection with the continuous history of those Funds.

The whole aggregate of depreciation is estimated - - $216;531 34

The annual report of December 1, 1851, gives cost of- road and equip-

meiitat - - - - . 9,953,758-84

Deduct depreciation above, gives present value - - 9,737,227 60

172 HISTORICAL MEMOIR OF

The Committee add the following as assets and liabilities :

Assets, Materials on hand, .... $121,919 36

Road and equipment^ .... 9,13T,221 60

New station house, Springfield, .... 19,716 11

Cash and cash assets, .... 42,649 68
Paid the sinking fund from proceeds of stock and bonds sold, prior to

January 1, 1849, ..... *469,578 62

$10,381,110 17
Liabilities — stock, .... $5,150,000
State scrip or bonds, - - - 5,319,520—10,469,520 00

Excess of liabilities, .... 88,409 83

Appended to the Report of this Committee, was a communication from Captain Wil-
liam H. Swift, the then President of the Western Road, presenting various valuable cal-
culations and statistics on the subject of repairs of track, road bed, &c., and all em-
braced under the heads of 1, " Mamtencmce of Way." 2, Repairs of Engines and
Cars and their renewals. 3, And Miscellaneous expenses, or every thing not em-
braced under the other heads.

The data for these statistics, were drawn principally from the annual reports
to the Legislature, of eight of the principal Railroads of Massachusetts, for five
years — 1846 to 1850, inclusive, with the addition, as to the Western, of facts within
the control of the President. The results are contained in five elaborate tables, copies
of which are annexed — ^The first, embracing cost of maintenance of way, and repairs
of engines and cars on the eight roads, for five years. By this, it appears, that the
average paid for Mamtenamce of Way, per mile run, on all the roads for the five years,
was ....... ^14 51J

And for repairs of engines and cars for the five years, was - 13 66

The average (or mean) of both items for the five years, was - - 28 23

The average of both on the Western for five years, was - 33 22

The second table relates to the work done, on the same roads for the same time, and
the gross expenses of the same. It assumes the same cost for transporting a passenger
one mile, as for one ton of freight one mile.

Givmg the number of passengers and tons of freight carried one mile, on all the eight
roads, for five years, and the gross cost, and gross miles run, it appears that the
mean average of the whole was, per mile, ... 1.445 cents

On the Western only, the mean average was - - 1.373 cents

The third table exhibits the ■usefvl effect, or work done for each mile run, by all
the trains of the eight roads in five years and shows the average number of passen-
gers or tons of freight per mile, at - - - - 54.12
In the case of the Western, it was .... 57.9

The fourth table shows the number of passengers carried one mile, and nuihber of
tons of freight one mile, and amount received for transportation of each, on the eight
roads for five years. The mean average of cost, per cent, of receipts of the whole,
was ..-.--. 50.4

Western cost per cent, of receipts, .... 417.0

• In this item there appears a slight error. Sea Annual Beport, January 1810, page 12, and
ante page 139 note.

THE WESTERN RAILROAD. 173

NoTJE.— In the 'Western only, the number of tons carried exceeds the number of pas-
sengers, and as " passengers move themselves ■without cost, and freight requires an
average expenditure of twenty-seven or twenty-eight cents per ton, for loading and
unloading," the result is less favorable to the Western than to the other roads, in all
of which, the number of passengers was in excess.

The fifth table is a consolidation of the results of all the prior tables.

The letter of the President to the Committee furnished in detail, facts and estimates,
on the renewal of sleepers, rails, freight cars, and Connecticut River bridge. The
opinion is given, that the life of the sleepers depended upon the kind of timber, and
nature of the soil, and the kind of usage. In loam soil the experience on the Western
had shown, that the sleepers will last about five and a half years ; in sand six and a
half years; in dry gravel seven years; in moist gravel seven and a half years; the
average duration has been six and a half years.

On the subject of iron rails the results are principally given in the body of the Re-
port of the Committee. To show how much depends upon the quality of the iron, the
facts are given, that the first iron rails used in this country were from the other side,
and cost from £12 to £15 per ton; and that those then (1851) purchased, cost about
£5. That the number of fifty-six pound rails necessary to remove from the track after
twelve years' service, was much less in proportion to those of the seventy pound rail,
than would be supposed.

As to the Connecticut River bridge, the letter of the President says, that in his
opinion, for four per cent., or one twenty-fifth part of the annual earnings of the road
for the (then) last three years, the bridge could be rebuilt and covered, and would be
then good for at least twenty years.

As a large Comfnittee of the Board of Trade of Boston, have recently very strongly
recommended a union of the Worcester and Western Roads ; and as Committees of
both Companies are now (1863) in consultation upon the same subject, it has been
deemed proper to give as fully as is here presented, an abstract of the statistics and
calculations of the Report of the Committee of the Western Company, of February,
1852.

174

HISTORICAL MEMOIR OF

X. Page 101.

TABLES ACCOMPANYING THE COMMUNICATION OP THE PRESIDENT

OP THE "WESTERN RAILROAD TO THE COMMITTEE OP

INVESTIGATION, JANUARY 24, 1852.

Cost of Maintenance of Way and of Hepairs of Engines and Oars, on
each of the foUowing Eoads, per mih run hy trains, from 1846 to
1850, inclusive, Five Tears.

No. 1.

Eoads.

"Western,

Boston and "Worcester,
Boston and Maine, . .
Pitohburg, ....
Boston and Lowell,

Eastern,

Boston and Providence,
Old Colony, . . . .

Miles run by
Trains.

3,696,713
2,063,632
1,812,422
1,55'7,93'7
1,202,088
1,356,136
1,165,079
901,543

13,755,560

Maintenance
of Way.

Dollars.
690,049
321,521
206,136
127,307
269,440
142,048
162,328
95,734

2,004,563

Do. per

Mil^.

Gents.
18.66
15.72
11.37
8.17
22.41
10.45
13.07
10.57

14.67

Bepairs of

Engines and

Cars.

Dollars.
547,651
355,621
191,209
148,356
296,380
97,659
133,136
109,318

1,879,830

Do. per
Mil^.

Cents.
14.56
17.23
10.55

9.39
24.65

7.20
11.42
12.12

13.66

Total

per

Mile.

Cents.
33.22
32.95
21.92
17.56
47.06
17.65
24.49
22.69

28.23

No. 2. Page 101.

Talk exhiKiing the quantity of work done in five years, (1846 to 1850,
inclusive^ on each of ike foUowing roads, expressed in passengers car-
ried one mih and in tons of freight carried one mile ; also the gross
expenses of each road for the same period. For the purposes of this
comparison, the cost of transporting a passenger one mile, and a ton of
freight one mile, is assumed to be the same.

Roads.

No. of Passengers

and number of
tons carried one
mile, aggregate.

Gross Expenses.

Cost per Pas-
senger, or per
Ton, per mils
■ carried.

"Western,

Boston and "Worcester,

Boston and Maine,

Pitohburg, .

Boston and Lowell,

Eastern,

Boston and Providence,

Old Colony,

213,925,952
126,499,456
92,997,700
82,702,400
82,227,452
74,720,643
50,118,288
36,198,135

2,937,593

1,899,845

1,237,515

1,077,169

1,258,519

985,066

860,220

721,912

1.373 cents.

1.502 "

1.330 "

1.302 "

1.535 "

1.318 "

L716 "

1.994 "

759,390,026

10,977,839

1.445 cents.

THE WESTERN BAILROAD.
No. 3, Page 101.

175

Table exhibiting the useful effect, or work done for each mile run by trains,
on the following roads from 1846 to 1850, inclusive, expressed in pas-
sengers and tons of freight carried one mile.

Boads.

Aggregate of

miles run by the

Trains.

Aggregate Pas-
sengers and Tons
Freight.

Average

number

carried for

each mile,

"Western, . . .
Boston and ■Worcester,
Boston and Maine, - .
Fitchburg, .
Boston and Lowell,
Eastern,

Boston and Providence,
Old Colony,

3,696,713
2,063,632
1,812,422
1,557,937
1,202,088
1,356,136
1,165,079
901,543

213,925,952
126,499,456
92,997,700
82,702,400
82,227,452
74,720,643
50,118,288
36,198,135

57.9
61.3
51.3
53.8
68.4
55.1
43.0
40.0

13,755,550

759,390,026

54.12

176

HISTORICAL MEMOIR OP

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THE "WESTERN RAILROAD. 179

C. C. Page 118.

AWARD OF THE ARBITRATORS, MADE MAY 21, 1844.

The v/ndersigned, the Arbitrators named m the Submission hereto cmnexed, marked A,
having met and fully heard the parties thereto, do make the following award:

The Boston and Worcester Railroad Corporation, having waived certain objections
supposed by them to be well founded, to any action by the Legislature or by the ar-
bitrators, in the premises, as appears by the paper hereto annexed, marked B, the ar.
bitrators have passed upon the questions submitted to them, and make this award,
upon what they deem to be just and equitable principles, without regard to legal ob-
jections.

They, in the first place, adopted the principle that the Boston and Worcester Rail-
road Corporation are to be paid all the expenses to which they are subjected in the
transportation of freight to and from the Western Railroad, and that, in estimating
these expenses, all the freight carried on the Boston and Worcester Railroad, from
whatever source derived, should bear its proportion of all the freight expenses on
that road.

In addition to the sum thus to be paid as the amount of actual expense incurred in
transporting the freight aforesaid, the arbitrators are of opinion that the Boston and
Worcester Railroad Corporation is entitled to a fair and reasonable profit upon this
portion of their business.

In establishing a principle upon which the amount of this profit is to be determined,
the arbitrators have had regard.

First. To what they deem to be the pohcy of the Commonwealth, as established by
its legislation, that the construction of new Railroads, to be connected with roads al-
ready in use, is to be encouraged; and that the business brought to the old road by
such new road is to be regarded as standing on a different footing from that brought
from other sources.

Second. To the fact independently of such considerations of public policy, that
the new road deals with the old road as a large customer bringing business in large
masses.

Third. To the fact that, to a certain extent, the Western Railroad brings a new
business to the Boston and Worcester Railroad; and,

Fourth. In some degree, to the pecuniary situation of the Western Railroad.

The arbitrators, however, would say that the consideration last mentioned has had
no weight with them, except so far as they have thought it for the interest of the
Boston and Worcester Railroad Corporation that their customers should be enabled to
realize a profit from their business operations, which will induce them to continue them.

Proceeding upon the principles above indicated the arbitrators are of opinion, and
do award accordingly, that for all freight brought from, or carried to the Western
Railroad, the Boston and Worcester Railroad Corporation is entitled to receive two
cents and seven-eighths of a cent per ton for each mile of their road over which the
same is transported; that this sum includes a compensation for the use of the depots
of the said Boston and Worcester Railroad Corporation, and for the expense of load-
ing and unloading thereat; that each Corporation is to supply the motive power over
its own road ; that each is to provide its proportion of cars and attendants according
to the number of miles on each road each ton of freight is transported, and that each
is to be subject to all expenses and to assume all risks on its own road.

The sum above named is fixed with reference to the now pxistihg freight tariff.

180 HISTORICAL MEMOIR OF

agreed on by the parties. If the Western Railroad Corporation shall hereafter in-
crease the rates of freight, passing over any part of the Boston and Worcester Rail-
road, to or from the Western Railroad, they shall pay to the Boston and Worcester
EaUroad Corporation a corresponding per cenium of increase upon the sum above
named.

The article of flour is not included in the foregoing part of this award. The rates
of transportation of that article, in the judgment of the arbitrators, and, as it ^ould
seem, in the opinion of the parties, should stand upon other and peculiar grounds. In
reference to this article, the arbitrators have endeavored to ascertain the cost to the
Boston and Worcester Railroad Corporation, of transporting it, and finding it to be
about nine cents per barrel over their whole road, do award that that sum shall be paid
by the Western Railroad Corporation, for such transportation over the whole of the
Boston and Worcester Railroad, and pro rata for transportation over any part thereof.
Provided, that if the rate of transportation from Greenbush to Boston, shall be fixed
by the Western Railroad Corporation at a sum exceeding thirty-six cents per barrel,
the Boston and Worcester Railroad Corporation shall receive one fourth part of the
said sum so to be fixed, for^transportation over their whole road, and^o rata for trans-
portation over any part thereof.

In coming to this concluaion, the arbitrators have proceeded upon the principle that
they would not be justified, in compelling the Boston and Worcester Railroad Corpo-
ration to carry any article over their road for a sum less than the actual cost of trans-
portation. If there be any counterbalancing incidental advantages, which should ren-
der it expedient for them to do so, they can be best weighed by the parties, and may
become the subject of an agreement dictated by a regard to their common interests.

' In regard to the transportation of passengers, the arbitrators have proceeded upon
the principles heretofore stated, as adopted by them, in reference to the transportation
of freight; and in pursuance of those principles, do award, that the Western Railroad
Corporation pay to the Boston and Worcester Railroad Corporation, two and one half
cents per mUe for each passenger of the first class carried to, or brought from the
Western Railroad to the Boston and Worcester Railroad, and two-thirds of said sum
for each such passenger of the second class.

They further award that emigrants are to be considered as passengers of the second
class, unless the parties, by mutual agreement, shall otherwise treat them.

And they further award, that, if the Boston and Worcester Railroad Corporation
shall hereafter reduce the fare for passengers of the first class on their road to less
than two and a half cents per mite, or for passengers of the second class to less than
two-thirds of that sum per mile, the same deductio"u shall be made from the sums to
be paid them for passengers by the Western Railroad Corporation.

Bach Corporation shall supply motive power, cars, attendants, and depot accommo-
dations, and be subject to risks in the transportation of passengers, in the same man-
ner, and to the same extent, as is herein before provided in regard to freight transpor-
tation.

In witness wjiereof, we have hereunto set our hands this, twenty-first day of May, vx
the year of our Lord one thousand eight hundred and forty-four.

(Signed,) J. M. WILLIAMS,

LINUS CHILD,
0. H. WARREN.

I hereby certify, that the foregoing is a true copy of the award of the arbitrators.
' (Signed,) J. M. WILLIAMS, CKaiirman.

THE WESTEEN RAILROAD. 181

D. D, Page 119.

Proposition submitted Jom/uary 23, 18i5, Jj/. tJie Directors of (he Boston, and Worcester
Bailroaijio the Directors of the Western Railroad, for .the mutual iBegulation of the
Joint Fa/res and Freights.

1. Each Corporation shall be entitled to the whole income earned upon its own
road.

2. The rates of fare and freight, for the joint business of the two roads, shall be
determined by mutual agreement between the two Boards of Directors.

3. In determining the rates of fare and freight for the joint business of the two
roads, it shall be first ascertained what difference between their respective rates will
afford to each Corporation an equal net profit per mile, on each passenger, and each
ton of freight transported (over the'whole or any part of both roads), taking into con-
sideration the annual charges- and the annual interest on the cost of each, with its
appurtenances, and averaging these on the whole business of the respective roads.
The rates established shall be such, as with a just aUowanoe for this difference of an-
nual expenses and interest, will give to each road an equal net profit per mile on each
passenger of the same class,, and each ton of freight of the same class. -

4. For the purpose of ascertaining the said charges of the two- roads for current
expenses and annual interest, averaged on each passenger and each ton of freight car-
ried one mile, for regulating the comparative rate of fare and freight on them for the
year 1845, an accurate statement shall be made of the business of each road in the
year 1844, which statement shall exhibit; —

1. Th6 amount of freight transportation, estimated by the number of tons convey-
ed one mile, and the amount of passenger transportation by the number of first class
passengers conveyed one mile, including alsoauallowaaGe for second class passengersj
equal to two-thirds of the number so carried.

2. A statement. of the current expenses of the year, including the-oost of repairs
of road, bridges, buildings, engines, and cars, and all charges for loss, damage, and
general expenses. The charges for the passenger and freight departments of busi-
ness, to be stated separately, and those which cannot be divided by a more equitable
rule, to be divided between the two departments, in proportion to the gross receipts
from passengers and freight.

-3. A statement of the cost of each road, with the annual interest thereon. The
interest to be reckoned at six per cent., except such part of the cost of the "Western
road as is defrayed by loans on State, stocks, and Albany bonds, which shall be stated
at the amount actually paid. The interest so ascertained on the -cost of each roadj to
be divided between the passenger and freight departments, in proportion to the amount
of receipts of ineome from passengers and freighti

4. These amounts being ascertained, the aggregate of the expenses of the passen*
ger department on each road, including its proportion of general expenses, and also its
proportion of Interest, to be divided by the number of passengers conveyed one mile
on the same road, ascertained as above prescribed; and the difference between the
results, so obtained, shall be the difference in the rate per mile of first class fare to be
established on the two roads, for the joint business during the current year. The
difference between the second class rate to be in the same proportion* The aggregate
of expenses of the freight department on each road, with the interest apportioned
thereto as above prescribed, to be divided by the number of tons conveyed one mile,
and the result so obtained to govern the difference per mile^ in the rates of freight to
be charged- on the two roads.

182 HISTORICAL MEMOIR OP

5. At the commencement of each succeeding year, similar statements to be made
of the business and expenses of the preceding year, with the interest, and divided
between the two departments as above prescribed, and new results obtained, for regu-
latmg the difference in the rates of fare and freight, which each road shall receive for
the joint business on their respective roads for the current year.

E. E. Page 124.

Extracts fromike contract of February 11, 1846, andamemorandmnofits changes in 1849 :

" Article 1. That in consideration of the higher relative cost of the "Western Rail-
road as weU as the expense of transportation upon it, in proportion to the amount of
its business, it is agreed between the parties aforesaid, that the said Western Corpo-
ration shall receive a larger proportion of the fare from joint passengers, than a pro
rata division per mile, as follows, viz: —

"Provided, The said Western Railroad shall so reduce its fare on the through pas-
sengers, that the rate from Boston to Albany shall be $5, the full proportion of which
for the forty-four miles of the Worcester Road would be $1 10, it is agreed that ten
cents shall be deducted from the said proportion, and added to the proportion of the
Western Road, so that the said Worcester Company shall receive $1, and the Western
Road $4 of the said through fare, and the mode of collecting said through fares, as
well as the joint way fares shall be the same as has been practiced heretofore, by the
sale of the tickets of the several roads, by the Agents of each, at their respective
local rates, and dividing an^ accoimting for the proceeds in the manner herein provid-
ed for. Second class passengers are to be charged at two-thirds the rates of those
of the first class, the proceeds in all cases to be accounted for in the same proportion.
■ " Aeticle 2. In case it shall become necessary or expedient for encouraging the
through travel, to establish an extra through train to run at lower rates of fare
than those above stipulated to be established by mutual agreement, the parties hereto
engage to consent to the same, and the proceeds of the fare so established shall be
divided on the same principle of deducting ten cents from the pro rata share of the
Boston and Worcester Road and adding it to that of the Western. Such way pas-
sengers as may be carried in the said extra train shall pay the regular rates of fare,
unless a different rate shall be established by mutual consent.

•' Aeticle 3. The Boston and Worcester Corporation agrees that the Western Cor-
poration shall be permitted to charge the joint passengers going to or from the way
stations on their road at a higher rate than the above, but not exceeding three cents a
mile, and that they will claim on this account no more than $1 for the whole length
of their road, and in the same proportion for parts of it.

" Aeticle 9. In regard to the income derived from the transportation of merchan-
dise, in consideration of the extraordinary expenses represented by the said Western
Corporation to be incurred by them in hoisting and lowering goods between the Rail-
road and Canal boats at Greenbush, and of collecting considerable portions of the
freight in small parcels at a large number of way stations, and of other stipulations
in this agreement, the Boston and Worcester Corporation agree that the expenses of
loading, unloading, clerk hire and other depot expenses incurred in the management
of the joint business on their part of the line, shall be set off against the like expen-
ses, including the said extraordinary charges incurred by the Western Corporation on
their part of the line, and the gross receipts of income shall be divided between the

THE -WESTERN RAILROAD. 183

said Corporations in the manner specified in the next article instead of the said ex-
penses of loading, unloading, &o., being made a charge on the gross receipts before
diyision, as has been claimed by the Boston and -Worcester Corporation heretofore.

" Abiicle 10. In consideration of the high grades on a part of the Western Road,
and the consequent large amount of locomotive power required in passing them, and also
of the greater wear and hazard of injury to the cars, it is further agreed that the receipts
from the transportation of all joint merchandise shall be divided between the two
Corporations pro rata, according to the number of miles which each parcel is trans-
ported; with this exception, that" after ascertaining the said pro rata division, there
shall be deducted from the proportion of the Boston and -Worcester Corporation, an
amount equal to twelve cents per ton, for every ton transported to or from places west
of Springfield, and the said amount shall be added to the pro rata propqrtion of the
-Western Road.

" Abticlb 11. It is agreed that either party may make special bargains for the
transportation of large parcels of freight, at rates varying from the regular rates,- in
particular cases,' on terms which they may think advantageous to the interests of the
two Corporations, and the division of receipts therefrom shall be made in accordance
with the terms so indicated.

" Abticlb 12. In consideration of the expenses incurred by the Western Corporation
in supporting a ferry boat between Greenbush and Albany, the Boston and -Worcester
Corporation agree to pay the -Western Corporation, two thousand dollars per annum,
towards defraying the expense."

(Signed,) NATHAN HALE, )

ADDISON GIIiMORE, f Presidents.

This " contract of 1846," was renewed on February, 1849, when the last article
— twelve — was declared " null and void, without substitute," and the third article was
so far altered as to fix passenger fare between Boston and Springfield at $2 50, and
between Boston and Albany at $5 00, and allowing the -Western Company to vary
fares for joint way passengers, the proportion of the -Worcester Company to be one
dollar for the whole length of their road, and in proportion for parts of it.

F. F. Page 127.

Oppiob as THB Boston and -Woroesteb Railroad, \
Boston, May 12, 1856. J

MenwrandMm of an agreement made hy and between the Western Saiiroad Corporation
and the Boston and Worcester Eailroad Corporation, this day, viz : —

-Whereas, the contract for transportation between the said Corporations will expire
on the first day of June next, and it is inconvenient to complete arrangements between
them for a settlement of the joint receipts, and the mode of transacting the joint busi-
ness, at so early a day as the first of June next: — Now, therefore, it is this day agreed
by said parties, that from and after the last day of May instant, the business shall go
on under the present arrangements, as it has been done, and the following division
and payments be made provisionally : — That is to say, joint passenger receipts, as un-
der the present contract; freight receipts to and from Springfield and stations east of
Springfield, the Boston and -Worcester Railroad to receive the same price they now
receive on Springfield goods ; and to and from stations west of Springfield, the same
rule as on Albany goods. The freight cars to be furnished by the -Western Railroad

1 84 HISTORICAL MEMOIR OP

eorporatioB, and the Boston and Worcester Railroad Corparation to pay four mills per
ton per mile.

The passenger cars tobe furnished, as under the present contract, hy the "Western
Railroad, and the sum to be paid therefor by the Boston and Worcester RaUroad Cor-
poration the same, with a fair allowance for Boston and Worcester local and way pas-
sengers in said cars. .Mlristof cars and contents ^to be assumed by each- party on
their own road, and any car condemned by the agents of- the Boston and Worcester
Railroad, on its reception at Worcester, shall be unloaded by the Western Railroad, at
their own cost, and another ftJmished and reloaded.

The whole matter shall be revised and settled, relating baick to /une first next, as
shall be agreed upon. The division shall continue till December first next, unless
sooner arranged and agreed upon by the parties, and is to be regarded, and all settle-
ments or monthly returns imder it, to be held or considered provisional only, and with-
out prejudice to the equitable claims or rights of either party.
Western Railroad Corporation, by

(Signed) C. W. CHAPIN, Free.

Boston and Worcester Railroad Corporation, by

(Signed) THOS. HOPKINSON, Fres.

G. G. Page 128.

Professor Benjamin Pbirce, Cambridge, Mass.:

Dear Sir, — The subscribers, a Committee of the Western Railroad Corporation,
desire Professor Peirde to make certain computations for their use, having relation to
the pending controversy between the Western Railroad Corporation and the Boston
and Worcester Railroad Corporation upon the question of a just division of the joint
business of these two Corporations.

1. In this controversy two principles of division of this joint freight are claimed.
First, by the Boston and Worcester Railroad, that each pdfcel or ton of freight to

each station on the Western Rail/road should he divided separately, and the quota of the
Boston and Worcester Railroad determined thereby, and vice versa.

Second, by the Western Railroad, that the entire receipts of the joint iusiness should
he divided in, the proportion in which each Compamy Tuts performed the worlc, i. e., that the
share efeach ehouldrie determined by the nvmber of ions carried one mile ly each Corpor-
ation.

There being various prices for theseveral classes of -freight to all the stations, and
various prices according to the distance to which the same is transported, the share
of the entire receipts from the joint business must vary, for or against one or the
other Corporation, as one or the other rule or- principle pf division ^hall be adopted.

2. For the purpose of showing the extent of this variation, the. Committee have
caused i^e entire^ joint business for- one month (Oetpber,,1859,) to he made up, that is
to say, the whole number of tons carried from Boston to all the stations on the West-
em Railroad, the several classes of -the same, the price of each class, the distance
from Boston to these several stations, and other data necessary for the. computation,
and desire Professor Peiroe to determine upon the data what amount of money the
Western Railroad would be entitled to receive upon the principle, which they- contend
for, the ' number of tons of all . classes ^hich tjiey- carry one mile,, and the sum which
they would-be entitled to receive £dt doing the same -amount of work under the rule

THE WESTERIT RAILROAD. 185

or principle contended for by the Boston and Worcester Railroad Company, i. e., that
each ton or parcel of freight to each station of the "Western Railroad shall be divided

3. Upon an examination of the tables, here it is discovered that the several classes
of freight have not been separately entered ; the aggregate of the three classes is
alone given ; this v^ill confine the question of division of the receipts, and instead of
three classes as alluded to in the second paragraph. Professor Peirce is requested
simply to divide the whole joint receipts without reference to classification of the
freight. C. "W. CHAPIN, )

W. H. SWIFT, V Committee.

STEPHEN A. CHASE, )
Western Railroad Ophoe, Boston, March 29, 1860.

To Messes. Chapin, Swift and Chase, the Committee of the Western Railroad
Corporation :

Gentlemen, — ^I have carefully examined the questions which you have submitted
to me, and ascertained the relative effect of the two difierent methods of dividing the
receipts from joint freight between the Western and the Worcester Railroad Corpora-
tions, and I have made a special investigation of the results for the month of October,
1859.

The accompanying table (A) contains the number of tons of joint freight carried
during this month between any two stations upon the different roads, and also the
corresponding amount of work performed by each Corporation, estimated in tons car-
ried a mile.

The table (B) contains the receipts from the carriage of this freight.

The table (C) contains the proportion of joint freight allotted to each Corporation
according to the principle of division claimed by the Worcester Railroad, viz: that
the receipts from each package shall be divided independently of all other packages
according to its own rate.
The whole amount of the receipts for the joint freight of October, 1859,

is by table B, $T4,044tot

Of which, by this principle of division, the portion of the Western Rail-
road is ------ 52,'746-ftV

And the portion of the Worcester Railroad is .... 21,29'JtW

Now it appears from table A that the amount of
service performed by the Western Railroad in

the carriage of this freight was - - 2,Q39,103-ft?ir ) Tons carried

While that of the Worcester Railroad was - 955,494-1%- ) one mile.

By this mode of division, therefore, the Western Railroad receives for every
thousand tons carried a mile $l'7-£^^, and the Worcester Railroad for the same
service $22-SiJi^.

For the same service, then, the Worcester Railroad receives $4-j^j- more than the
Western Railroad, or twenty-four per cent more ; and reciprocally, for every hundred
dollars thus paid to the Worcester Railroad it carries 4,486-^^ tons a mile, while for
the same money the Western Railroad carries 5,560-j^J^- tons a mile, which is 1,086-iajL
tons more than that carried by the Worcester Railroad for the same money.

It is apparent then that the carriage of this joint freight is most unequally profit-
able to the two roads upon this principle of division, and that It is worth twenty-four
per cent, more to the Worcester than to the Western Railroad.
24

186 mSTOEICAL MEMOIR OP

It is quite possible, indeed, that this worlc may be profitable to the Worcester Rail-
road, while it is of insignificant value, or even a loss to the "Western Railroad ; if the
profits which accrue from it to the "Western Railroad are just, those derived by the
"Worcester Railroad must be excessive. I cannot understand how such an unequal
compensation of services can be consistent with the public interests.

If the principle of division claimed by the "Western Railroad be adopted, the re-
ceipts from the joint freight must be divided exactly in proportion to the work per-
formed by each Corporation ; this gives in the division of the receipts from the Octo-
ber freight.

To the "Western Railroad, .... $55,850 J-/,,

To the "Worcester Raih-oad, .... 18,193 ^

"Which diifers in each case, .... 3,103 Jb^^

from the results of the previous division ; the rate of compensation is here the same
for both roads, being $19-f^ on every thousand tons carried a mile.
All of which is respectfully submitted by

BENJAMIN PEIRCE,
Perkins Professor of Astronomy and Mathematics in Harvard College.

Harvabd University, Mat 1, 1860.

H. H. Page 129.

The annual Report of January, 1861, says, "The parcel and station division only
partially applied, produced the following results, for the year ending November 30,
1859. Of the whole amount of freight received and delivered by the "Western Eoad at
"Worcester, amounting to 165,634 tons — 159, '7 69 tons was through freight, toandfrom
Boston and Brighton ; and only 5,865 tons was way freight to and from stations of the
"Worcester Road. By excluding Brighton, of this whole amount, only 101,209 tons was
through freight to the "Western ; and this whole freight was carried, on an average, forty-
three miles by the "Worcester, or ninety-eight per cent, of the whole length of their road,
and only one hundred seventeen miles by the "Western, (of a road one hundred and
fifty-six miles long,) or seventy-five per cent, of its whole length. The gross amount
received by both Companies for transporting this freight was $64'7,'744 59, and aver-
aged for each ton carried one mile, 2 45-100 cents. "While of this the "Worcester re-
ceived 2 83-100 cents and the "Western but 2 3 1-100 cents for each ton carried one
mile ; thus yielding to the "Worcester a rate of 22 J per cent, more than to the "West-
ern." As stated by the Report, the same process for 1860, gave to the Worcester an
average of 2 63-100 cents, and to the Western 2 23-100 cents — or to the Worcester
eighteen per cent, higher than to the Western.

The following table, annexed to a Report of a Committee of the Western Company
in answer to the Worcester, on the subject of the union of the two roads in 1845, was
j)repared to exhibit similar inequalities at an earlier date.

THE ■WESTERN EAILROAD.

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188 HISTOEIOAL MEMOIR OF

1. 1. Page 130.

AWARD OF COMMITTEE OP BOSTON BOARD OF TRADE, JITLT 10, 1862.

Article I. Each Corporation shall perform all services and bear aU expenses on
its own road, and shall be liable for all injuries and losses which may be sustained by
passengers, baggage and freight while upon its own road ; and when such injury or
loss having been sustained on the road or roads of one or both, if it cannot be deter-
mined that it was sustained wholly on the road of either, then the loss shall be de-
ducted from the joint receipts before the division hereinafter provided for.

Aktiole 2. We decline to allow the claim of the Boston and Worcester Railroad,
"that a joint and specific allowance or sum should be paid out of the joint receipts to
each road, to cover expenses of loading, unloading, cooperage and collection charges,"
and award that the services above named are offset on each road by services of simi-
lar nature, and on the part of the Western Railroad by charges peculiar to that road.

Article 3. After deducting from all joint freight and passenger receipts of both
roads for freight and passengers passing over the whole or parts of both roads, any
losses which may happen as provided in article first, of this award, and also any ex-
penses of agents west of Albany, who may be agreed upon by both corporations, for
the promotion of the joint business, said receipts shall be divided between said cor-
porations by the following rule, viz : at the end of each month the amount of joint
freight and passenger transportation by each corporation shall be ascertained by ob-
taining the number of tons and passengers carried one mile by each, and the aggregate
receipts of both for such transportation shall be divided between the two corporations
in proportion to the number of tons and passengers carried one mile by each.

Article 4. All accounts between the two corporations shall be adjusted and paid
in the manner now practiced between said corporations, except as herein provided, for
the division of the joint receipts, and the payment of losses and expenses as above
stated.

Article 5. This award shall take effect on the 31st day of May, eighteen hundred
and sixty-two, and continue in full force for the term of twelve mouths from said date,
and until the expiration of three months' notice, given in writing by either party to the
other, of a desire to terminate the same, said three months' notice expiring vrith or
after said twelve months.

J. J. Page 134 and 143.

Exiracts from the Tripartite Agreement of April 23, 1840, between the Oily of Albamy
of the vmsT part, The Albany and West SiocTcbridge Eail/road Companyof the second
pa/rt, and The Western Railroad Company of the •smxDpart:

After providing for the issue of the bonds of the City, and their delivery to the
Western Company for the construction of the Albany Road, and the entire use and
control of the road by the Western Company, the agreement proceeds, " And the said
party of the third part further agree, that, as a rent or compensation for the use of
said road, they will punctually pay the interest on such bonds as may be issued in
pursuance hereof, according to the tenor thereof, as the same shall fall due, and that
they will assume all risks of loss upon said bonds, receiving all profits arising there-
from. And it is hereby agreed by the parties, that the Chamberlain of the said city of

THE WESTERN RAILROAD. 189

Albany, for the time being, and such persons as shall from time to time be named in
writing, by said party of the third part therefor, shall be the trustees of the Sinking
Fund, hereafter provided for. And the said party of the third part hereby agree, that
they will pay the said trustees ten per cent, on such bonds, as they shall receive the
same, and annually, after said road shaE be opened for use, will pay also to said trus-
tees, the amount of one per cent, upon the whole of the bonds which shall have been so
issued I and the sum so received by said trustees, and the interest or profit annually
accruing thereon shall be by them, from time to time, securely invested in bonds and
mortgages on real estate in said city of Albany, or in the stocks of either of the States of
New York or Massachusetts : and the same, with the income thereof, shall constitute
a sinking fund for the future purchase or final redemption of said bonds or scrip :
provided, that when a sufficient sum shall have been thus realized to pay the amount
due on said bonds, the said annual payments of one per cent, shall cease ; and all the
interest thereafter accruing on said sinking fund, shall be paid over to said party of
the third part, excepting, however, any part thereof which may at any time be neces-
sary to make up any losses accruing upon the principal of said fund, and any current

, expenses of the same. And provided, further, that the party of the third part shall
have the right, at any time, to purchase and surrender to said party of the first part,
any portion of said bonds or scrips ; and thereupon, the said party of the third part
shall be entitled to receive, from said party of the first part, a transfer to them, or such
person or persons as they shall 'designate, of an equal amount, at par value, of the
shares in the capital stock of said Albany and West Stockbridge Company ; and the
said annual payment of one per cent, to the sinking fund, shall be reduced in the same
proportion ; and if, by said purchase and surrender of bonds or scrip, the said sinking
fund shall be more than sufficient to pay the balance of the bonds or scrip outstanding,
the said surplus shall be paid over to said party of the third part ; and when said
bonds shall faU due, the said sinking fund, or such part thereof as may be neces-
sary therefor, shall be applied to their payment; and when the whole of said bonds
shall have been paid and surrendered, such part of the sinking fund as shall remain,
if any, shall be paid over to said party of the third part; and the said party of
the first part shall transfer, or cause to be transferred, to said party of the
third part, the whole of the residue of the shares in the capital stock of said
Company, and so ipro rata for any portion of said bonds which shall be so paid and
surrendered. And it is further agreed and provided, that the said trustees shall annually,

' on the first day of December, transmit to the parties of the first and third parts, detailed
statements of their proceedings in relation to said sinking fund, for the year preceding,
with a statement of their account and a schedule of all the securities held by them,
with the income of the several parts thereof for the year. And the books of accounts
of said trustees, and the securities of said fund shall, at all times, be open to the in-
spection of Committees, appointed by said party of the first part, or said party of the
third part.

And the said party of the third part further agree, that if they shall at any time
neglect to pay the interest on said bonds punctually, as it shall fall due, the said par-
ties of the first or second part, may enter upon and take possession of said road, and
the appurtenances and equipments on the same, and use them, and receive the
profits thereof in trust, until all arrears of interest shall be paid, and the party of the
third part shall be liable for any deficiency. And the said party of the third part also
agree, that if the New Tork and Albany Railroad shall hereafter be constructed so
far as to unite the same with the Albany and West Stookbridge Railroad, the party of

190 mSTOEICAL MEMOIR OF

the third part will, at their option, either allow the New Tork and Albany Railroad
Company to use the Albany and Vest Stockbridge Railroad, with their engines and
oars, paying for such use a reasonable sum, or will transport the passengers and mer-
chandize of the said New Tork and Albany Railroad, over said Albany and West
Stockbridge Railroad, on as favorable terms as the average of those upon which pas-
sengers and similar merchandize are, for the time being, transported over the Railroad
between Worcester and said point of junction with the New Tork and Albany road,
and without unreasonable delay ; and in case of any disagreement in executing these
provisions, the matter in issue shall be decided by three commissioners, to be appoint-
ed by the chancellor of the State of New Tork. And the party of the third part
reserve the right, at any time, to discharge the trustee of the sinking fund, appointed
by them, and to appoint another in his stead.

And in order to preserve the organization and corporate powers of the said Albany
and "West Stockbridge Railroad Company, as hereinbefore provided, it is agreed by
the parties, that such number of the shares of the stock of said company as shall be
necessary therefor, shall from time to time, by the procurement and appointment of
said party of the first part, be held by individuals to be named and designated by the •
said party of the third part, in trust for the benefit of said party of the first part, and
such shares shall be subject to all provisions herein stipulated for, in relation to shares
held directly by said party of the first part, and be eventually transferred to said party
of the third part, on the same conditions and contingencies.

And the said party of the third part, further agree, that they will not run their
locomotive engines north of the village of Greenbush, or of the city of Albany, with-
out the consent of the party of the first part : and that they will assume and pay the
reasonable expenses heretofore incurred by the party of the second part, for the pre-
liminary surveys for said road, and for the salaries of ofScers and other general ex-
penses of said Albany and West Stockbridge Railroad Company in prosecuting the
object of their incorporation, and in case of disagreement, the parties shall abide by
the decision of three commissioners to be appointed by the chancellor of the State of
New Tork.

And the party of the first part, agree to give their consent and approbation for the
construction by the said party of the third part, of one or more depots within the
city of Albany, and to connect the same with said Albany and West Stockbridge
Railroad, by a single or double track, with suitable turnouts and branches, upon the
terms and conditions prescribed in the act giving such authority, passed on the thir-
teenth day of April, A. D. 1840.

And the said party of the first part, further agree, that no change shall be made
to said party of the third part, for the right and privilege, at their ovra coat and ex-
pense, to convey across the Hudson River, at Albany, the passengers and freight
transported or to be transported upon said Railroad, or the officers, agents and serv-
ants of said party of the third part, or their engines, cars or other property.

ERRATA

Page 12, line 9, after "session" insert "of."
" 24, line 4 from bottom, for "thir6y-six " read "seventy-six."
" 3T, line 17, after party, insert *— line 18 dele *.
" 31 last line Note, dele " stibsequmily."
" 40, line 33, dele " Appendix, D. 2."
" 40 line 31, for " has " read " had."
" 65, line 4 from bottom, for " G. 2," read " S. 2."
" 66, line 3, for " twenty," read "twenty-three."
" 87, last line— add " See Appendix, S. 2."
" 88, line 27, for "remed" read "revived."
" 90, line 28, for " taMe " read " tables."
" 97, line 25, for "X" read "X X."
" 111, line 3 from bottom, for " ^^J^ read -^^.
" 118, line 20, after "immur" add *.
" 134, last line Note, for "twenty " read " twenty-three."
" 160, line 3, for " Commissioner of the Worcester" read " Committee of the
Western."