ARGUMENT IN FAVOR OF THE PROPOSED CONSOLIDATION OF THE Western and Worcester Railroad Corporations, BEFORE THE COMMITTEE ON RAILWAYS AND CANALS, MARCH 16th, 1864. PELEG W. CHANDLER. / BOSTON: PRESS OF GEO. C. RAND & AVERY, 3 CORNHILL. 1 864 . . . . . > .. . . . ! f * •; Mol/ ARGUMENT. Mr. Chairman and Gentlemen of the Committee : In 1827, a committee' of the Legislature of Massachusetts were instructed “ to take into consideration the practicability and expediency of constructing a railway from Boston by the most eligible route to the western line of Berk¬ shire, in order, if leave could be obtained from the government of the State of New York, that it might be extended to the Hudson River. The committee, of which Emory Washburn was a member, made a very elaborate and able report, setting forth the great advantages of opening communication between Boston and the West over the route proposed, discussing with much learning this method of cheapening and facilitating the transportation of merchandise, and pointing out in glowing terms the value of such an enterprise. A through route from Boston to the Hudson was a leading idea of the Re¬ port, and it was enforced with great power, logical acumen, eloquence, and skill. In the course .of time a road has been built from Boston to Albany. It has been built in the face of obstacles which often seemed insuperable. The difficulties in the way of the enterprise, the opposition to be overcome, the courage, patience, endurance, required for its accomplishment, can scarcely be appreciated by the present generation. I say a road has been built from Boston to Albany; but the original idea of the pioneers in this enterprise, of a single corporation with one head, under one control, with an efficient and single management, has not yet been accom¬ plished. The road was first chartered from Boston to Worcester, because at that time the route beyond Worcester was not agreed upon. Moreover, it was supposed that this portion of the great, design could be carried out by private enterprise, and might be put in operation long before the whole line would be located and built. But it was never supposed that the road to Worcester was to be operated by itself; that Worcester was to be in any sense the ter minus; and it was never dreamed that there could be any opposition or rivalry between the Boston and Worcester Road and the Western Road. Accordingly, before the Worcester Road was opened for travel, the West- 4 ern Road was incorporated, the Directors of the Worcester were made the corporators, and the charter of the Western Road was so constructed as to place that corporation effectually under the control of the Boston and Wor¬ cester corporation. And now, after the lapse of some thirty years, these corporations both come before the legislature, and ask that the original design maybe com¬ pleted, and that the two companies may be merged in one, upon such terms and conditions , and. subject to such legislative restrictions and safeguards , as the Legislature in its wisdom may devise. They ask this not merely from their own experience of its necessity, but because they are almost driven to it by the pressing urgency of the public. The construction of these two roads has been of immense advantage to Massachusetts. It has developed our resources wonderfully. Cities and towns have grown up on the line. Manufacturing villages have sprung up in all directions, and we have secured a share in the Western trade, so that Boston lias largely profited by its connection with the West, and the whole Commonwealth is greatly advanced in wealth and population. But there is immense competition for the Western business. Philadelphia, Baltimore, New York, and Portland are all striving for it. It is impossible to deny that Boston is falling in the rear, and that other cities and States are securing the advantages that we can just as well retain by wise and efficient management. The export trade of Boston strongly increased from 1850 to 1857. In the year first mentioned, it amounted to $9,181,652. In 1857, it had gone up to $28,326,919, — an increase of almost $20,000,000. Butin 1860, before the war commenced, it had gone down to $15,186,879. The exports from New York in 1857, were $111,029,000, and in 1860, they had gone up to $120,631,000. The exports from Philadelphia were, in 1857, $5,950,965. In 1860, they had gone up to $7,748,240. The figures are significant. We are nearer Liverpool than Philadelphia or New York. We have an excellent harbor. Our merchants are men of energy and enterprise, and still we are falling behind our neighbors. Our ships go to New York. Our merchants are following them, or are having branch-houses in that city. Moreover, it is ascertained that a considerable portion of our own business is not done upon our own roads. Merchandise from Boston to the West, and freight from the West to Boston, actually go and come over roads which are owned and controlled out of Massachusetts. The Pennsylvania Central, for instance, takes business from as far north as Northampton, Mass., Concord, N. H., and the State of Maine, carries it some 300 miles south of Boston, then to the west and north to the same parallel of latitude, in competition with the direct route. The Grand Trunk Road takes business from the districts in the West on the same parallel as Boston, carries it over 200 miles to the north, then 100 miles beyond Boston to the east, then brings it back to Boston in competition with the direct route. Our merchants — our men of enterprise — are, and for a long time have 0 been, alarmed at this state of things. It is obvious that something is wrong when goods do not go and come by the most direct routes. It needs no argument to prove, that when a railroad can take merchandise 300 miles out of the way at a cheaper rate and more expeditiously than another line which is almost straight, there must be something wrong in the management of the straight line. The conviction is forced upon us that a great many things remain to be done in order to make our position secure. One of the things is to consolidate the various lines of roads leading to the same points; to reduce their expenses to the minimum; to reduce the num¬ ber of' officials; to give the management more unity, greater efficiency, more breadth and power, and thus enable them to do our business as cheaply as it is done on the roads in other States. I say consolidation is one of the things to be done. It is not all. Other things must undoubtedly be done. The other side speak as though we sup¬ posed consolidation was per se to accomplish everything. It is one step and a most important one. Others must follow. ADVANTAGES OF CONSOLIDATION. As to the advantages of consolidation, it is not necessary for me to say much on a question that has been so thoroughly argued here by counsel, and upon which the witnesses have expressed themselves with so much clearness and power. It is impossible for me, it would be impossible for any one, to add a word to the testimony of railroad men like Messrs. Brooks, Holmes, Chapin, and merchants like Messrs. Converse, Harris, Richardson, Plumer, and Mr. Tobey. Of Mr. Brooks’ testimony, it may be remarked, that it was remarkable in every point of view. Eminently fair in all his statements, and entirely free from the slightest exaggeration, he pointed out the benefits of consolidation with a clearness which could reach the dullest apprehension ; he enforced his propositions with a wonderful array of facts in detail, and he illustrated every point with a wealth of learning and a philosophical discrimination truly ad¬ mirable. It was obvious, too, that the statement of Mr. Chapin made a deep impression upon the committee as it did upon all the counsel engaged and upon the audience who have favored us by their presence during all these tedious hearings. He seemed to lift the whole subject up from the petty considerations (local prejudices and personal feelings) with which it has been encumbered these many years, and placed it clearly before you in a manner as calm and gentle as it was firm and impressive. With a truly marvellous knowledge of all the details of railroad management, they do not control or confuse his mind, as is so often the case, but he handles them with the power of a giant, and arranges them with the skill of a master, so that they do not obscure but illustrate every point he takes. I am also bound to say that Mr. Twichell, the President of the Worcester road, stated the advantages of con¬ solidation with great clearness and ability. In this position of the case I shall only venture to call your attention to a few points that have been clearly established. 6 1. The consolidation of railroad corporations forming a single line is now the approved policy. The railroad interest has become of such vast importance that some of the ablest men in all parts of the country are devoting themselves to it. They have reduced the matter of transportation to a science. They are constantly investigating, constantly comparing, constantly improving. The great points are to reduce expenses to the minimum point, — to acquire the maxi¬ mum of speed and efficiency. It is absurd for men of no particular experience to talk in an oracular way on this subject at the present day, and in the presence of such witnesses, — to say that because they can see no advantages in a particular course, that there¬ fore none exist. As well might a man deny the existence of certain stars to an astronomer who has observed them in his glass, because he can’t see them. As well may a man standing by the side of a fence which is higher than his head, deny what a tall companion sees over the fence and far beyond. A man may be an excellent lawyer or judge, or merchant, — nay he may have experience in the management of some short railroad, and yet be profoundly ignorant of the true economy of managing lines of railroads in order to effect the transportation of immense amounts of freight thousands of miles, with the greatest possible efficiency and economy. Now, when men like those we have produced here, who have given the matter most careful and patient and thorough investigation for many years, tell you that the true policy is consolidation, — that this is now the received doctrine, it is of no consequence that men of inferior knowledge and of no real, or very limited experience ‘ k can’t see it.” Perhaps they can’t and per¬ haps they never will, but is the world therefore to stop ? Consolidation is the received policy. The Pennsylvania Central, the New York Central, the Grand Trunk, and numerous others that have been alluded to, have been once separate corporations under different and sometimes adverse management. Since consolidation, the change in their receipts, their efficiency and usefulness have been truly marvellous. 2. Consolidation must and does diminish the expenses. All the best informed men say so. We have proved it over and over again in this case. The fact is too obvious for argument. 3. Consolidation will secure at once some most needful improvements. At the Abany end of the Western Railroad they have been troubled for years about a bridge. At this end they need a deep water front. More than all, they need a new track a portion of the distance, and will soon need a third track. It is very clear that this will be done with more celerity under con¬ solidation. Mr. Chapin asserts it. Mr. Twichell freely admits it. We ask for an increase of capital for this very purpose, and, we hope, by consolida¬ tion, to have that unity of action which will at once and forever secure these most desirable improvements. 4. Consolidation will secure unity of responsibility. When we complain of high freights, or want of speed, one road says, “ It is not I,” — the other says, “ It is not I.” The two united could never get off in this way. One great evil now is, that when you go to one road to make a bargain, it says “ I will do so and so if the other road will do so and so.” The other road says the same. A controversy springs up at once. The merchant, in disgust, goes to a road which has a single president or agent who can speak authori¬ tatively and at once. The trouble here has been so great, that the Corn Ex¬ change have solemnly resolved they would not employ this route at all. Consolidation of the two roads to Albany will not remedy this evil entirely, because there are roads beyond Albany. But it is a step forward, and a most important one. It is easy to see that a single Massachusetts road is in a much better position to negotiate with the roads beyond Albany than two roads can ever be, especially while they do not act harmoniously together. 5. The State has a large interest in the Western road. It owns 11,571 shares, the value of which will be greatly increased by consolidation, and this without any injury to the Worcester road, which is not to be forced into the union, but asked to come into it. 6. Consolidation will give the State two or more Directors in the whole road. There will be no harm in having the eye of the government looking into the affairs of this end of the line as well as the other. 7. Consolidation of continuous lines of railroad (not parallel) has for years been the policy of this Commonwealth , as shown by some thirty different acts . some of which have been reported this very session. The union of parallel lines has not been favored, because it tends to monop¬ oly by stopping competition; but the union of continuous lines has been fa¬ vored because it tends to cheapen prices, diminish expenses, and, insures more energetic, consistent, and harmonious action. 8. There is and for years has been an element of discord between the West¬ ern and Boston and Worcester Railroad corporations , long continued and deep rooted , which nothing but consolidation can effectually remove. THE ELEMENT OF DISCORD. The difficulties between these corporations had an early origin, and have continued many years. No one who has been familiar with the controversy, or who has studied the history of these transactions, can fail to see that the difficulty is one of principle and not one of mere details. The trouble com¬ menced before the Western road was completed. In 1844, that corporation applied to the Legislature for relief. While this petition was pending, it was agreed to submit the matter to John M. Williams, Linus Child, and Judge Warren. They made an award satisfactory to the Western road, but unsatisfactory to the Worcester. In 1845, after the Legis¬ lature had adjourned, the Worcester road gave notice of their intention to terminate the award. Negotiations were resumed, but without any success. The Western road then applied to the Legislature again for relief. I was a member of the committee to whom the subject was referred. Very able counsel appeared on each side. There were many hearings — long argu¬ ments. The committee reported a general law , by which the Western road 8 could enter upon the Worcester, unless the latter would draw its cars, &c. Compensation to be fixed by commissioners appointed by the Supreme Court. After the passage of this law, negotiations were resumed. There were many.letters — long conferences — endless discussions—but all in vain. The Western road then applied to court for the appointment of commis¬ sioners under the law. The Worcester road resisted and filed a long answer, setting up that the law was unconstitutional. Negotiations were again resumed and then (1845) it was proposed to con¬ solidate the two roads. To this end committees were appointed by both roads — very able men. They agreed upon terms and unanimously recommended union. Before the Western road could act on this proposition the Worcester cor¬ poration had a meeting, and rejected it. They gave no reasons whatever. They jmade no counter proposition. They proposed no settlement in any other form. It was in effect a full, plump, and almost offensive refusal to have anything to do with the Western road, as unreasoning and unreasonable as the famous reply : — “ I do not like thee, Dr. Fell, The reason why I cannot tell. But this one thing - 1 know, full well, I do not like thee, Dr. Fell.” Then, negotiations were again renewed. The discussions, the letters, the figures, the assertions and counter-assertions between the two presidents were almost endless. There never was anything like it since the Antinomian con¬ troversy in Colonial times. Well, in 1846, there was a change in the direction of the Western road. Addison Gilmore was chosen president, and a contract was soon made be¬ tween the two roads for ten years. There was great rejoicing. The Worcester corporation gave a splendid supper, and the gossips had it that there was a great time of hugging and kissing, laughter and tears. It was hinted that the two presidents danced a jig, and a well-known director sang “ Cornin’ thro’ the Rye,” with great effect. But even at this festive occasion the flames burst out, and it re¬ quired some considerable effort to keep the peace. This went on till Gilmore’s death, after which it was found or supposed that this remarkable man had been under a delusion the whole time, and, by a mistake or misunderstanding on his part, the Western road had greatly suf¬ fered. The settlement, of which so much had been sung and said, was founded on a mistake ! During this whole controversy, the only amicable arrangement ever made was because one party was in error as to what it was ! In 1854, another difficulty sprung up under this contract, and was referred to F. B. Crowninshield, president of the Lowell road. It was in this year that the officers of the Western road, upon careful com¬ putations and examination, discovered that the freight clerks had, ever since 9 the agreement of 1846 was made, misapprehended the meaning of that con¬ tract, very much to the injury of the Western road. This led to protracted negotiations, and all hands went at it again. Peace was out of the question, and the Western road gave notice (1856) that the contract must be terminated. In 1857, the Legislature dipped into the matter and passed an Act, which did no particular good or harm, “ on the use of railroads.” In 1857, the parties went at it again in the courts. The Western road petitioned for the appointment of Commissioners under the law. The Worcester road, not to be behind and to show proper pluck, also ap¬ plied for Commissioners. The court appointed J. W. Brooks, Holmes Hinckley, and Waldo Higgin- son. They reported in 1858. The Western road immediately moved to set the award aside. They were so much dissatisfied, that they offered the Wor¬ cester road $25,000 to vacate it, which was declined. In 1860, the Legislature again tried its hand at the matter, on petition of the Western road, and an Act passed the House by a majority of 63, but was postponed in the Senate. Then, the corporations — having exhausted the law and lawyers — having gone through all the regions of diplomacy — having tired out the Legislature and vexed the business world beyond endurance — went at the mathema¬ ticians. The Western road hired a distinguished Cambridge professor, and set him at work. The Worcester road hired a gentleman of equal industry, set him at work, and splendid work they made of it. If any one doubts it, let him study the propositions submitted and worked upon by these dis¬ tinguished men. At a subsequent period one of these corporations, as I have heard, kept a clerk whose sole or main business it was to cypher ; and all sorts of possible and impossible problems were submitted to, him and were worked out. There is a report that he went mad. The president of the other road hired no clerk, but undertook the business himself. He kept cool, and did not go mad; but when he dies, a post mortem examination will show the effects on his system of what he has done in this mathematical race. Well, from the time of the Brooks award, in 1858, the companies rubbed along till 1862 ; having one or two references' and lawsuits, and of course negotiations all along. But as all property finally goes through the Probate Court, and as all mat¬ ters of trade finally, or at some time, pass through the Board of Trade, they got hold of this matter, and found it a harder nut to crack than they had ever before undertaken. The gentleman from Worcester (Mr. Dewey) laughs at the Boston Board of Trade, and more than intimates that they had better mind their own business, and that they are enlarging their operations too much by intermeddling with this matter. I do not think he made much out of that attack. It is strange if the merchants of this city cannot confer to¬ gether as to the best means of increasing the business and enlarging the 2 10 resources .of the Commonwealth. As to the comparison he makes between the city and country, — endeavoring to work upon an old prejudice, — I beg to inform him that we have changed all that. Since the war commenced, the city and the country stand together. The old jealousies between them never did amount to much, but they are over now, and no one alludes to them in the hope to produce any effect, unless he has been burrowing in a hole for three years past, or unless he fails to read the papers. He says the Board of Trade has taken up the cow disease! Very well. If they make worse work of it than some of the State boards, composed of country gentlemen, I hope he will let it be known. Boston, as the gentleman makes great effort to prove, may have sent a slave back to bondage, but there were Worcester men enough here to have prevented it if they had dared ; and Boston and Wor¬ cester now are together doing all they can to put an end to slavery forever. The sincere and honest efforts of these able and respectable merchants are enough to excite the commiseration of all Christian men. Wishing to extend the trade of the city — desiring to sell more goods — striving for a portion of the Western trade —hoping to do something in comparison with New York, and feeling that they must do something to keep the business we already have, they called on the two corporations and wished to know what in the world was the trouble, and why the difficulties could not be adjusted. The Western road grimly replied that they were ready to settle on fair terms; and the Worcester road, with a look of innocent surprise, and a smile that would do no injustice to the full moon in October by its comprehensive expressive¬ ness, — no man ever was so innocent as the President of that road can seem, when he pleases, — was astonished to hear that there was any difficulty! “•What was the trouble ? Whose child was lost ? Who was making all this noise ? Did not the Worcester road pay first-rate dividends ? Did they not accommodate the inhabitants of Newton Corner and West Newton, and New¬ ton Lower Falls and Newtonville, with a train every hour? Did they not send fourteen trains per day to Brookline, a famous settlement three miles from State street ? and Auburndale I Why, whenever there was an exhi¬ bition at the Lassell Female Seminary, they made up a special train so that all the papas and mammas and the little dears could go out and return the same evening. And then the Boston Museum ! there was once a week a late train on purpose to enable the suburban residents to see the wonders thereof. The Worcester railroad not accommodating the public! I guess so! ” Now these unsentimental merchants said this baby talk was very well. But if there were a hundred thousand barrels of flour in St. Louis, we can’t get them to Liverpool by way of Boston; and if there were a million bushels of corn in Chicago, it might go to New York rather than Boston ; and if there were five thousand dressed hogs to go to Boston, they n\ust get here by way of Portland. “ That’s what’s the matter.” And so the corporations agreed to leave the subject to a committee of the Board of Trade, and they went at it with as much zeal and earnestness as young Christian started on his jour- 11 ney in “ Pilgrim’s Progress ” ; and like him they went through the Slough of Despond, up the Hill of Difficulty, and if they did not go down into the Val¬ ley of Humiliation or through the Valley of the Shadow of Death, they had a narrow escape of Vanity Fair. They had twenty-seven hearings, and they came fully , earnestly , entirely, clearly , to the only sensible result that the roads ought to be united. They were satisfied that there never could be peace and quiet, and cheap fares, and low tariffs, and speed, and real economy and effi¬ ciency, till these two roads were one corporation^and under one management. They have stated this at great length in the Report which you have, and some of them have testified to it before you here, and have given their rea¬ sons at length. In the excellent letter which the Secretary of the Board of Trade (Mr. Sabine) addressed to the President of each road, he says: — “ After nearly five years’ official experience, and especially after the ex¬ position before our committee, I cannot doubt that consolidation is the only measure to terminate the long and finally the complicated controversy be¬ tween the two roads, to prevent a rival line, and to give Boston such inter¬ course with the producing States of the West, as is indispensable to the main¬ tenance of our rank as a commercial city. Cheerfully do I leave time to de¬ termine the accuracy of my opinion in this behalf.” Subsequently to this union, and twice subsequently, the two corporations have voted to unite. But this has been prevented by the influences you have seen at work during this investigation. NATURE OF THE DIFFICULTIES. I have stated these facts, at tedious length, to show the precise position of the question. What is the nature of the difficulties between the two roads, I will not discuss. To do so would require a volume. It is enough that they exist. It is enough that they have existed for years. It is enough that the legislature, the directors, the courts, commissioners, and referees have tried in yain to settle them. It is of no use to say it is foolish for able and honest men to carry on such a controversy for years. Perhaps it is. It certainly has its ludicrous aspect. But like other long standing difficulties, it has become chronic. In most cases of differences between men, you say, “ Let them leave it out to disinterested persons.” Well, they have left it out to such men again and again, and each award has differed in principle from the others. “ Why not select men learned in the law ? ” They have done so, and were no nearer a settlement than before. “ Then let them take skilful engineers.” They have done this, and their award was so unsatisfactory that one of the parties immediately offered the other $25,000 to vacate it. ' • It is idle to say that a controversy like this, which has existed for a quar¬ ter of a century, in which some of the ablest, most honorable, upright, and sensible men of the Commonwealth have been concerned, and have differed so widely, — it is idle to say that such a controversy does not carry with it inherent difficulties for which there is and can be but one cure. 12 The Western Road is a most expensive affair, — built through a mountain¬ ous region, with high grades, steep embankments, and an expensive ferry at one end. It is much the longest road of the two. It runs through a country of which a portion is sparsely settled, and depends much on the long or through business. The Worcester Road is short, but it is an expensive one, and is obliged to receive all the freight from the Western, and make most extensive depot accommodations in Boston. It runs through a country thickly popula - ted, and gets much profitable local business. With two roads thus situated, it may seem to one who has not tried it, to be (like preaching) a very easy matter to divide their earnings fairly; but the moment you examine the subject, it is evident that the most difficult questions arise at once. Whether this be so or not, one thing is certain, that these questions have severely taxed the minds of very able men, and no two tribunals have ever yet agreed upon the same principle of division. Let me use a familiar illustration. A farmer has two horses; one weighs 1,050 pounds, the other—a mere pony—weighs 800. He wishes to use them together. He tries them abreast. He sees it is an unequal match, and he tries by artificial contrivances to make it equal. He has the harness so constructed as to favor the little horse. He rigs a brake on the wheels to aid in overcoming the inequality. It will never do ! The big horse will kill the other in time, unless he is himself worried to death by his companion. My Dear Sir, put them tandem , and see how beautifully they will work together ! But you reply, the comparison does not hold, because the two roads always have been tandem. True, but there have always been two drivers. Who would think of having two drivers for a tandem team ! one jerking the leader, and the other whipping the wheel-horse. What confusion is here ! Hand the ribbons to Twichell. See how he gathers them in his left hand — observe the way he curls his thumb over the off rein — he deliberately takes the whip — then he draws up gently, speaks to the wheel-horse, and at the same moment, touches the left ear of the* leader ! There you are ! over hill and dale — by the banks of the river—through the meadow—over the brook,— ah, Mr. Chairman and gentlemen, think of this, and we here in this heated hall, deep in these perplexing questions ! A reverend member of the last House intimated to me with a sigh and in the strictest confidence, that he feared there would be no tandem teams in the other world. We know we shall not be troubled there by these railroads or their directors and their quarrels. But while here, if you would expect any succesful operations by them, have but one driver for a single team. WHO OPPOSES CONSOLDIATION ? Such are some of the advantagesof a consolidation of these two corporations. It is proposed to restore the original policy of the Commonwealth — to give energy to the management—efficiency to the business — to cheapen trans¬ portation and to afford additional means of communication with the West — 13 to finish the second track, complete the connection at Albany, and secure a water front in Boston, so that goods may be taken on shipboard directly from the cars. Above all, it is proposed to end a tedious, long standing and most injurious controversy between these two corporations, whose united, harmo¬ nious, and effective cooperation is now a most desirable thing. What then are the objections to the course proposed ? What can be the objections to the passage of an Act to be submitted to each corporation for its approval and acceptance ? Before entering upon a consideration of them, it may be proper to inquire from whence the opposition comes f In this I merely follow the lead of the other side, who have taken consid¬ erable time and made no small effort to show who are the parties in favor of the project. Who opposes this consolidation ? Who is it — what parties — what cities — what corporations, are so fearful lest there shall be peaceful and harmoni¬ ous action between these railroads ? With a single exception we hear noth¬ ing from the towns on the line of the Worcester Road. Framingham, and Natick, and Westborough, and Newton are not here to remonstrate. The truth is, the opposition is really confined to two parties. (1). Citi¬ zens of Worcester, and (2), the directors of the Worcester Railroad Com¬ pany. It is true, the Norwich and Worcester Railroad Company fa Connecticut concern) nominally appears here, but the proposed union can really have but little influence any way upon that road, and the counsel for that road (Mr. Dewey) is so obviously in the Worcester interest, and is so clearly acting with the other gentleman from Worcester (Mr. Hoar), that we may fairly * consider that branch of the opposition as included in the city of Worcester opposition. It turns out, too, that the Boston and Worcester and Norwich Roads are under a ten years’ contract with each other, and the Norwich Road may safely wait till that expires before it will have cause of alarm. Long before the gentleman who spoke yesterday (Mr. Dewey) came to his argu¬ ment, it was quite clear that his appearance for the Norwich Road was more a nom de guerre than anything else, and although he went through the for¬ mality of introducing the president of that corporation, his witness seemed to know but little of the subject, and to care less. But when the gentleman came to his argument, he hardly alluded to the Norwich Road at all! It was Worcester all over, and nothing else. You will remember that Bottom the weaver, in Midsummer Night’s Dream, protested that to “ bring a lion among ladies is a most dreadful thing, for there is not a more fearful wild fowl than your lion living.” Therefore he insisted: “ You must name his name, and half his face must be seen through the lion’s neck, and he must speak through, saying, if you think I come hither as. a lion it is no such thing, and then,” says Bottom, “ let him name his name and tell them plainly he is Snug the joiner.” The gentleman has been nominally counsel for the Norwich Road through these many hearings, but when he came to sum up the case, his honest face 14 peered through the covering, and, like Snug the joiner, his real character was very obvious. The gentleman who closed the case for the opposition (Mr. Brigham) said he appeared for stockholders of the Worcester Road, and for mankind in general. But he named no stockholders. He has produced none here. He is not one himself, I believe, and as for mankind in general, it is not so clear that they take interest enough to procure counsel to attend this long investi¬ gation. It is useless to attempt such disguises. It is obvious that the gentle¬ man appears for certain directors of the Worcester Road. It is equally clear that the whole opposition to this measure proceeds from two sources, and from two sources only, (f), Gitizens of Worcester ; (2), the directors of the Worcester Road. THE CITY OF WORCESTER. In regard to the opposition of Worcester, it may be remarked that a large and influential party in that city have always been opposed to the Western Road. That city was favorable to the enterprise in the outset, and did much to aid it, but when the road was completed to Worcester, a great many of the inhabitants became impressed with the narrow idea that it would be injurious to the town not to have the road terminate there. This is a prejudice which has often existed in relation to towns situated on railroads, but it is a prejudice which experience has always dissipated. The opposition in Worcester to the Western Road however began early, and has been kept up with great ability, energy, activity, and perseverance to the present day, aggravated no doubt by the difficulties which occurred fifteen years ago in relation to the location of the depot there, — the directors of the Western Road being unwilling to go a mile out of the way in order to enter the centre of that town. As early as 1835, public-spirited men all over the State were straining every nerve to complete the road. A convention was held at Springfield, and a prominent citizen of Worcester declared that the people of that town would not nppose the road, although they believed the extension of it beyond Worcester would be injurious to them. And in 1838, when Hon. Emory Washburn made a most eloquent speech in favor of aiding the construction of the Western Road, he deemed it due to truth to use this language: — “As for myself, it must be obvious that if I permitted th6 immediate interests of my constituents, as distinct from those of the public, to influence me, I should be disposed to prevent, rather than to aid, the construction of the Western Railroad. Every one will see that it would be belter for the trade and business of the town of Worcester to be as she now is, the termination of a road, and consequently a depot for the merchandise and manufactories of the surrounding country, than to become, as she will be, a mere thoroughfare for the passage of a line of travel and transportation Such was the statement by Governor Washburn twenty-five years ago, of 15 the opinion in Worcester, — a statement the more reliable as coming from one who was himself one of the earliest, most ardent, and able friends of the project; and it is easy to see that, although some of the Worcester people must have risen above such mistaken and narrow views, they are still enter¬ tained by many in that locality. In 1838, when a most determined and vigorous effort had been made throughout the Commonwealth to complete this great enterprise, and when every man felt bound to take all the stock he could possibly carry, the num¬ ber of shares subscribed for in Boston was 15,124 ; in Springfield, 1,661; in Charlestown, Cambridge, and Roxbury, 556 ; in Worcester, 27. There were six shareholders in Worcester, and the number of shares taken was twenty- seven ! I am not complaining of the course of Worcester. I am only stating the fact that this opposition to the Western Road is no new thing. I state it as a fact. I allude to it as a very narrow policy, which still continues to influ¬ ence many people there. The gentleman from that city has much to say about the rights of the mi¬ nority in railroad corporations, and makes an appeal in behalf of Worcester in that connection. The Worcester director also, Mr. Lincoln, testified at length in their behalf, and expressed a fear that they would be left out in the cold if consolidation takes place. He advised the merchants of Boston not to look so much to the unattainable trade of the West, which more naturally goes to New York, but to have especial regard to the traders of Worcester who now go too often to that city for goods over the Norwich and Worcester Railroad, because they can do better there than in Boston. Mr. Peter T. Homer, formerly of Boston, but now, I believe, also a Wor¬ cester county man for a considerable portion of the year, and a director of the Worcester Road, is of the opinion that the true policy is to develop the resources of Massachusetts and make it a second Belgium, and run our rail¬ roads with that interest in view, rather than to seek trade and business from other States, and he furnished statistics about the cost of bringing a barrel of potatoes from Vermont. Mr. Twichell, the President of the Worcester road, and a Worcester man all over, is of the opinion that consolidation would not only tend to injure the local business of Worcester, but it would touch the affections of the people, who delight to speak of the road as “ our road,” and who, it would seem, can never enlarge the boundary of their affectionate regards so much as to embrace the consolidated road, and have toward it this w r arm and affectionate regard. Not a single witness do they call who is not in some way enlisted for or concerned in the locality of Worcester. Messrs. Denny, White, Hammond, Claflin, are mute, although some of them have been inter¬ ested spectators during the entire hearing. One thing was pretty clear from the gentleman’s argument, namely, that the high claims of the city of Worcester have not been sufficiently regarded by a numerous class of people in this Commonwealth. 16 That we have all looked to her with satisfaction for governors and judges and senators and statesmen and politicians, of all orders, high and low, and that she has for a period beyond the memory of man been spoken of as the “ heart of the Commonwealth,” is well known. She is visited also annually by both political parties, or their representatives, who assemble in Quinsig- amond Hall and arrange the political campaign. Several railroads pass to and through this thriving city, and some of the trains stop there long enough to refresh the inner man. But it seems that Worcester is or should be the terminus of all these roads. They were built mainly for her exclusive bene¬ fit, although not with her money. She is not content to be a mere way-sta¬ tion, but she is the terminal point. The Norwich and Worcester road, the Fitchburg and Worcester, the Nashua and Worcester, the Boston and Wor¬ cester,— do not the very names show that they were and are Worcester concerns ? True, passengers do go on through Worcester, because this is a free country, but no greater facilities for this through business ought to be afforded, it seems, than are absolutely necessary, and it is enough that the interests of the place require this. We talk about Boston being the hub , — this may be so, but here is the very wheel itself, hub, spokes, rim, and tire included ! There is another very marked peculiarity of the city of Worces¬ ter to which I should not allude if the gentleman had not blown a loud trumpet, and provoked the comparison. Rich in men of ability and culture, she generously offers them for the official positions they always adorn, and is no niggard in this respect. Rich also in material wealth and prosperity, she is able to restrain herself from any remarkable profusion in her contributions to public projects; but here, too, she is willing to take the direction and control of matters, and uses her talent for management with much success, without feeling obliged to run any great risks in a pecuniary point of view. We can all afford to look upon this inland city with a certain admiration ; but when the learned counsel comes here, and goes out of his way to ridicule the Board of Trade for their efforts to extend the business of Boston, and more than intimates that our merchants should give up the Western trade, and cultivate that of Worcester, our admiration knows no bounds. The idea is truly refreshing. It recalls the daisies that grow by the hill-side, and is redolent of poetical license and cheerful sentimentality. The modesty of the suggestion is only equalled by its originality. So far as the Boston and Worcester Railroad is concerned, — “ our railroad” — it appears that the whole stock owned in Worcester is less than one-fourth part of the capital; and when able, excellent, and influential gentlemen came down here to the last annual meeting, they must have borrowed or purchased for the occasion a few shares, in order to get admission. At the last meeting, most eloquent addresses were made by several Worcester men, and their speeches were printed in the “ Daily Advertiser ” just before the Legislature met, and it appears by the last printed stock-book, which I hold in my hand, that the whole of them owned five shares of the stock, when this book was printed, in May last! 17 And so of the road from Worcester to Gardner, of which so much has been said. It appears that the charter has expired and been renewed sev¬ eral times, an d it is most clearly intended that this road, which is to make Worcester the terminus of the Tunnel road, is finally to be built by the Com¬ monwealth ! The tunnel must be built. The faith of the State is supposed to be pledged to that. But its proper terminus is over the Fitchburg road, to deep water. If the State is wise, it won’t mix that road up with Worcester. There was really a very large Worcester cat in the tunnel-scheme meal, and we now understand the zeal of gentlemen from that place in aid of the measure. It seems to be a well-known, perhaps rather a vulgar principle, in the man¬ agement of .property of all kinds, that it shall be under the control of those who own it; but things have been so conducted in the Boston and Worcester Railroad, that it has been pretty effectually under the control of those who do not own it. And those who are the loudest in their denunciations of a wise and liberal policy, and who wish to control the road to meet their own pecul- ar and local views, are precisely the men who own little or nothing of the stock. It is rather hard that Boston, where so much of the stock is owned, should be taken so to task, and rather cool that Mr. Chapin, who owns about as much stock as the whole city of Worcester, should be snubbed because he thinks it proper to vote for the men he likes. Although the owner of seven hundred and sixty-eight shares, he never attended but one meeting, and for this he is so unmercifully lectured that he probably will never dare show his face again. Mr. Chapin and those who threw the consolidated ticket, voted, it seems, for Mr. Twichell, and Mr. Denny, and Mr. White. But he thought Mr. E. S. Tobey, one of our ablest men, who had been a Director but one year, ought to be retained, and he was willing to dispense with the services of Mr. Peter T. Homer, and Mr. Hammond, and even Governor Washburn, all of whom owned less than one hundred and fifty shares in the concern. And now the fear is, lest an Act may be presented to the corporation which they will accept , and our friends opposite cry out for protection of the minor¬ ity. The minority seem to have protected themselves in this matter thus far, and may safely be left to their own skill and pertinacity. You will bear in mind, Mr. Chairman and gentlemen, that I and those who act with me, have not introduced this matter. This sort of talk was com¬ menced by them. If the stockholders of a railroad do not look after its af¬ fairs and redd the reports, and attend the annual meetings, they will fall into the control of a few men; and when well conducted, the stockholders ought to be thankful for the disinterested services of those who undertake the labor and assume the responsibility of the management. But, on the other hand, when the stockholders do choose to institute a change , — whenever they are dis¬ satisfied at the general management or with specific acts , and seek to control and manage their own property, it seems hardly fiair that they should be held up to ridicule and reproach for so doing. The gentleman from Worcester says this whole scheme is got up by the 3 18 Western road, —the complaints of the merchants, — the dissatisfaction of the public, — the acts of the Corn Exchange and of the Board of Trade are all a part of one scheme, on behalf and under the influence of the Western road. Now, it so happens that of all the merchants we call as witnesses, not one is a stockholder of the Western road , so far as I now remember. The Western road is here on the invitation of the Worcester road. W e are their guests, and are at least entitled to the courtesy that belongs to that relation. The Western corporation, tired of this controversy and hopeless of a fair adjustment of the difficulty, petitioned last year for leave to build a separate road to Boston. At the next annual meeting of the Worcester road, the stockholders appointed a committee to confer with a committee of the Western road as to a consolidation of the two corporations. The two com¬ mittees harmonized at once ; they came to the conclusion unanimously that union ought to take place, and they agreed unanimously upon terms. They made a joint application to the last Legislature to sanction the union. It was postponed to this year, not defeated. Meanwhile, a special meeting of the Worcester road was held, to consider this very subject. They did con¬ sider it, and again voted to favor consolidation. That vote is unrepealed. The committee of the Worcester road are here present, vigorously pursuing the object. We are here at their request. But the gentleman from Wor¬ cester (Mr. Hoar) says the original proposal for union was made by “ a gentle¬ man named Blake,” who was in the interest of the Western Railroad.” How does he know that ? What proof is there of that assertion ? He offers none, and he can have no personal knowledge on the subject. But it appears that the “gentleman named Blake” was a Director of the Worcester road for several years, and until recently. He doubtless got his knowledge on the subject, and formed his opinion from what he saw while he was a Director. Then, the gentleman says, that the prime mover in the matter at the last meeting was Mr. Sidney Bartlett, whom he justly styles the leader of the bar of the Commonwealth, and whom most of us know to be one of the most honorable and high-minded men in the Commonwealth, who would scorn to do anything by indirection, and who he infers was acting for the Western Railroad because he was their counsel in some of these controversies with the Worcester road. Now it appears that Mr. Bartlett is one of the oldest stockholders of the Worcester road , and owns nearly twice as many shares of the stock as President Twichell, — more than nine times as many as Mr. Director Wash¬ burn, — about twice as many as Director Hammond, — and about twelve times as many as Director Claflin. It further appears that he was the chair¬ man of a committee who arranged for union of the two roads twenty years ago, and acted then for the Worcester road. If he has been employed by the Western road in Iheir controversies with the Worcester, he is doubtless the more impressed by the knowledge thus gained than he was twenty years ago, of the necessity of union, and that this is the only effectual remedy. Then, as to the last annual meeting of the Worcester corporation, the gen- 19 tleman argued at length that the election of the anti-consolidation ticket is proof that the Worcester road don’t desire consolidation. It tends to prove it, but is by no means conclusive or satisfactory. It would have been per¬ fectly easy to have voted directly on the subject, and the fact that a direct vote was not risked, shows that the gentleman and his party then felt what we know to be true, that many people voted for the old directors who were not opposed to consolidation. But in this uncertainty, we propose a certain test. Give us a bill subject to acceptance by the stockholders of the Worcester corporation. Let them vote directly on the question, and then we shall know to a certainty, and without any ifs or buts. DIRECTORS OF THE WORCESTER RAILROAD. Now, in regard to the position of the Worcester Railroad Company. It will be important here to make a distinction between the directors of the Worces¬ ter road and the stockholders , — the former may be and probably are opposed to consolidation in any form, upon any terms and under any circumstances. They are mostly and for many years have been under the Worcester city in¬ terest, and the history of this road presents a curious illustration of the fact that a corporation may be managed so as to entirely defeat the wishes of a majority of the stockholders on some important questions, if they only get fair dividends. It shows that a few able men when once in possession, may retain their seats for a long time, although their views of some important points of policy would never be sanctioned by the stockholders if called upon directly to vote upon the question. We have at this hearing a very singular anomaly in the fact, that while a highly respectable committee of the stockholders of the Worcester Railroad are here, and have been for three weeks, laboring with their utmost to effect the consolidation of these two roads, and while a com¬ mittee of the directors of the Worcester road are here nominally to aid the first named committee, — the whole directors (or most of them) are actually do¬ ing all they can by advice, suggestions, and even by speeches, to defeat it, and thus defeat their own committee. There is another remarkable fact. The whole number of shares of the Worcester Railroad is 45,000. The directors of the road own less than 500 shares, according to the printed stock list, as follows President Twicheli. D. Denny. N. Hammond. B. F. White. Emory Washburn. G. P. Upham. W. Clafin. D. W. Lincoln. P. T. Homer. ..25 ..30 ,.25 ..30 ...5 200 ..4 ..52 ..70 It appears also that the last year’s directors owned only about half that number of shares. Nor is this exceptional. For years the most active direc¬ tors in this road, on the question of consolidation, have owned little or none of the stock. * 20 I shall not stop to admire the disinterested magnanimity of gentlemen who spend their time and labor in the management of property of which they own little or nothing. But I cannot but admire (baud invideo , miror magis /) the ability with which they succeed in defeating the expressed wish of the stock¬ holders and yet retain-their seats. Three times the stockholders of this road have voted for union, and it seems as far off as it was twenty years ago. It is really wonderful to see the skill and ability of the management to prevent this one thing. At the last meeting, for instance, we find that Mr. Tobey, who had been a director one year, and w ho was in favor of union and peace, was left out, and Mr. Wm. Claflin was chosen. This single fact is of no great moment, perhaps. Mr. Claflin is a respectable trader in town, — never owned any stock in this road, so far as appears, but on Feb. 4, now last past, he be¬ comes possessed, either by inheritance, purchase, or gift, of four shares ! and at the annual meeting on the same day he was chosen a director, and Mr. Tobey was left out. Now, Mr. Claflin is and for years has been Chairman of the Republican State Committee , and we hear in all directions of the influence he can exert to defeat the consolidation of these roads on the ground of a po¬ litical monopoly. These gentlemen, you see, who are so fearful of a large mo¬ nopoly and of its political influence, have an eye to the main chance, and mean to be cured by a hair of the dog that bit; but if the political machinery of the State is to be brought into action here, the sooner we know it the better. The truth is, the Worcester Railroad Co. is in rather an anomalous posi¬ tion here, but that is nothing unusual. Indeed, its appearance is quite char¬ acteristic. In 1846, after the Western road had petitioned the legislature for relief, the Worcester road appointed a committee, and the committee unani¬ mously agreed to union. So, in 1862, when the Western road petitioned for a separate route to Boston, the Worcester road appointed a committee, and that committee unanimously agreed upon union. And it will be found generally, in the history of these transactions, that whenever the Worcester road gets cornered or frightened, they profess a willingness and readiness to do any and all things for peace—and when the time of performance comes they are off. Their committee is here to-day, acting under a commission that has never been repealed or modified. But the directors are here using their influence directly against them. After all, the opinion or wishes of the Worcester road, so far as the present hearing is concerned , are of very little consequence. Nor, in one aspect of the case, do I care for the opinion of the Western road. We do not ask for a bill to be forced upon these two corporations. We ask you to present a good bill, that is satisfactory to you. We ask you to present that hill for acceptance to the two corporations. If they accept it, well. If they refuse, let their mouths be forever closed in re¬ gard to after proceedings of the Legislature. The Western road wish for an entrance into Boston, that will accommodate them at fair rates. The Worcester road do not furnish it themselves and they interfere to prevent its being furnished by others. I 21 Whenever we ask for a separate route, they come, hat in hand, and say, “ Why, we will do anything you want.” They negotiate, — they appoint com¬ mittees, and we are constantly deluded into the notion that something will be done. But when the time of performance comes, they can be brought to no terms. We are tired of this way of doing business. The public is tired of it. The Legislature is tired of it. Let a fair bill be offered to the Worcester road, and, if they refuse it, then their mouth is forever shut. Then , the Legislature having made them the of¬ fer of union, may proceed to do justice by us and give us a separate route. But the Worcester road will accept the bill. There is not a doubt of it. CONTROL OF THE NEW CORPORATION. Let me here allude to the suggestion that the Western road will swallow up the Worcester, if consolidation takes place, and will have the entire control of the new corporation. This is a specimen brick of the bugbears .raised in this case. The direct contrary is true. The number of shares of stock of the Worcester road, deducting the State stock (which does not vote for general directors) is larger than the Western. The capital of the Western is the largest but not the stock , because several millions of the capital are represented by the debt. The number of shares of the Western road is...51,500 The number of them owned by the State.......11,500 Leaving the number to vote.40,000 The number of shares of the Boston and Worcester road is 45,000. Now, if the Worcester Railroad managers are half as able and adroit in the new concern as they have been in the old, they will have no difficulty in taking entire control. They can easily do this with a majority of stock in the former, counted by thousands. If consolidation should take place to-day it would he in the power of the Worcester road to manage the whole matter. They could, choose the directors and president and fill every office in the new corporation. This consideration has an important bearing on the outcry (for it is nothing more) that the new corporation will be dangerous. It appears that the very par¬ ties who make this objection can control the new concern, and it will be their negligence or their fault if it is not managed well. It seems to be taken for granted that the new corporation will not have as honest, capable, and ener¬ getic men to manage it as the two present corporations. The gentlemen are guilty of the inconsistency of urging in one breath that the new road will not be managed with so much ability as the present ones, and in the next breath they cry out that thp new corporation will be a tremendous power for evil. Why will the increased power and ability of the new road be for evil rather than for good? All admit that the present roads are managed honestly. The same men will, or may, be concerned in the new one. Why, then, 22 should not the new one be well managed, with all the combined efforts of the two old ones. It is clear that the Worcester interest can control the new corporation. Is that interest to become corrupt, unprincipled, base—just as soon as it is exerted for the combined roads ? The Worcester managers may conduct the new road. They certainly will conduct it, if their stockholders say the word. Is their virtue so easy, are their principles so weak, is their character so feeble, that they will become villains and cheats and political wire-pullers the moment they become the directors of the consolidated road ? If their virtue will remain firm in going from Boston to Worcester, will it fail them in a journey from Boston to Al¬ bany ? We suppose this new road is to be managed by Massachusetts men, controlled by Massachusetts virtue, conducted by those who have been educated in our schools, taught from our pulpits. We suppose that if the two roads are now managed upon sound principles, the combined road will be so managed. If the two corporations are conducted with ability, the combined corporations will be conducted with the combined ability of the two. But the gentlemen on the other side seem to go upon the idea that the union of the two roads, like the combination of certain substances in chemis¬ try, will produce a compound entirely different from the two component parts. Each road they say is harmless in itself, — but united they will be dangerous. Each road is strong by itself, but combined, they will be weakness itself. They tell of railroad management in New York and New Jersey. Why not of Russia, and Austria, and Italy V This new road is not to be managed by New Jersey, or Pennsylvania peo¬ ple, — nor by Italians or Russians, hut hy Massachusetts men , and when you show that they are naturally crafty, and tricky, and unprincipled, and not to be trusted, your argument will be good, and not before. Again, great fears are expressed for local accommodation. Why should not the local accommodation be the same as now ! If it pays now, it will pay then. If required now, it will be required then. If furnished now, it will be furnished then. If you fear it will not; if you believe that the local business will be neglected, put it in the hill that it shall not be. Have a special clause, that there shall be the same accommodation as now. It would be foolish, but you sometimes meet baby talk with candy But in truth the local business will be better accommodated. Every witness of first-rate ability says so. Mr. Chapin is clear upon the point. So is Mr. Holmes, and Mr. Brooks is clear and positive. It must be so upon principle. A long line with a large business has busi¬ ness enough in its departments to employ a competent person to give to each department his special and undivided attention; he will in such case manage his special business better and more economically than can be done in the case of a shorter road, where each man must attend to various duties. To intimate that these two roads, which now are well conducted and which now furnish local accommodation to universal satisfaction, are to lose their character in this re spect by union, is to take a very narrow view of the sub¬ ject. 23 A DANGEROUS MONOPOLY. It is gravely argued here that the consolidated companies will constitute a corporation too large and powerful for the Commonwealth. That it will be a dangerous monopoly. It is rare to hear an objection of this sort at this day in Massachusetts. It was formerly the war-cry of the democratic party against all corporations. The dangers of monopoly, like the horrors of the Hartford Convention, were, in former days, the great bugbears and the party watchwords. The democratic party is wiser now, and the cry of “ monopoly ” as applied to cor¬ porations established by, and under the control of, our State government, is taken up by men from whom we should least expect it. Thirty years ago, the argument that a railroad corporation of $16,000,000 capital, and a considerable portion owned by the Commonwealth, would be too unsafe for the State, would have stood no chance before a respectable committee. Now, it seems, we must argue the old question over again. Now, we must endeavor to strengthen the weak knees of the timid, — to help the faltering steps of public men who feel incompetent to make a charter of a railroad from Boston to Albany that will not be unsafe. Unsafe! Unsafe to whom ? Unsafe for what ? Who is to be injured? — When, where, how is this great injury to be worked ? Let us look at this bugbear set up to frighten children. And now, mark! The question here is not as to the adoption of any particular hill. It is not as to the adoption of any specific measures. But the question is as to the adoption of any bill, — as to the adoption of any measures what¬ ever. The question is, not whether you will allow consolidation on any specific terms — but the question is, whether you will allow it on any terms whatever. The question is, whether you are capable of making an Act of Consolidation that will he safe. We present the form of a Bill, it is true. We think it is safe. But we ask you to examine and improve it. Nay, we ask you to make an entire new Bill if you do not approve the one we offer. We ask you to insert any and all safeguards , that will protect the interests of the Common¬ wealth. Will it be seriously argued that this is impossible ? Suppose this were an original question. Suppose there were no road at all to Albany, and the question were now mooted for the first time, would you reject it because such a thing would be dangerous ? Would you, like the Pope of Rome, for so many years, keep railroads out of the State as inven¬ tions of the devil! Or, would you now, with all our experience of the evils of so many petty corporations, say we will charter a road to Albany, but we will erect three, four or five separate corporations to build it. That is, we will have three boards of directors, —- eighteen men, instead of one board of six men, because eighteen men are less dangerous than six. The truth is these two roads are now united so far as any injurious effect on the public is concerned. It is the desire of both roads to get as high dividends 24 as possible, — to keep up the fares, and the trouble arises from the division among themselves. They are in no sense rival roads. Rival roads tend to restrain each other, — to run upon each other, and so the public gains by their competition. But there is not, and there never can be, anything of the kind here. So far from there being any competition, it is directly the reverse. If the Worces¬ ter Road carries cheap, the temptation is for the Western Road to charge more, so that the whole (through charge) shall not exceed what it would cost on other through routes. If you were asked to unite the Boston and Maine, and Eastern, or the Ogdensburg and the Western, or any rival routes , the argument would apply, but never to roads which are a mere continuation of each other. I contend that several roads on one line are infinitely more dangerous to the public, infinitely more dangerous as a monopoly, than one corporation controlling the whole. For, in the first place, each is trying to get all it can, and the aggregate of the whole charges must be more than one would think of asking. The aggregate expenses must be more. The aggregate power of the whole, also, — the directors, presidents, laborers, clerks, employes of all sorts, must be more powerful than one sober, steady, large corporation, with one president, one board of directors, one set of officers. And you may be sure that all the directors, presidents, clerks, laborers, lawyers, and employes, of separate corporations, will unite when the interests of the corporations re¬ quire it. The argument, if it can be called such, that it is impossible to make a safe corporation of $16,000,000 capital, to operate a railroad from Boston to Alba¬ ny, proves too much. It also proves too little. And, when we look to other States, — when we see what Maine, New York, Pennsylvania, Ohio, Elinois, even Tennessee, Georgia, and Virginia are doing and have done, I am ashamed to have this project defeated on the ground that it is unsafe, and that our people are so ignorant, so weak, or so unprincipled, that a corpora¬ tion, established by the Legislature, owned in part by the Commonwealth, and subject at all times to the supervision of our courts and*the control of the State authorities, will be so dangerous that we cannot have it. Suppose there is danger ? There always is some risk in all great enter¬ prises ; but a business-man is considered weak who will never run any risk, who will not enter upon large operations because they involve trouble to look after them, who will take no return cargo for fear prices may go down, or who lets his ships rot at the wharves because they may be destroyed by storms at sea. A State which means to develop its resources, increase its population, enlarge its business, and compete with sister States, must enter upon undertakings involving the labor of supervision, and, if you please, the dangers of monopoly. It is mortifying to see that other States, with views as broad as the bound¬ aries of our country, with courage equal to any emergency, feel able to coif- 25 trol large corporations, while we, starting at shadows, fearful of bugbears, arc- neglecting the golden opportunity of securing the treasures of the West and of extending our trade round the whole world. But, it is said, these States are suffering from these large corporations ! When, where, how ? Is the great State of New York suffering, with the granaries of the West pouring into her territory on every side, with a city, the largest on the continent, and destined to be the largest in the world ? Is Maine suffering, with a young city springing into the first rank of com¬ mercial emporiums and already the rival of Boston in commercial ventures, with a railroad extending one thousand miles to the West ? Are Pennsylvania, Illinois, Ohio, suffering ? Commend to me such suffer¬ ing as they are having from these railroad corporations. Upon this point we have been treated with hints and not met by proofs. Insinuations have been thrown out as to the political influence of the large corporations. The New York Central Road was mentioned, and Mr. Brooks testified, of his own knowledge, that the road had never been used, for politi¬ cal purposes in any manner whatever. He further said that it was the result of his experience that large corporations had less power and were more easily controlled than a number of small ones. They are more watched, — more open to supervision. There is constant jealousy of them. Then the gentleman from Worcester had the old story about the Camden and Amboy Railroad, and he read an article fr.om the New York Tribune. Does he not know that the trouble there is with the government of New Jer¬ sey , which compels the road to collect a tax for State. purposes on every passenger ? Now, let us look for a moment at other States and see what they are doing- in this matter of large consolidated corporations, and let us ask ourselves if we are not as capable of managing these affairs as our sister States. If we are not, then we must be content to let the business pass from our control to that of people who are equal to the emergency. I hold in my hand a list of somg of these corporations, which was prepared by a competent person, and I presume is accurate. Miles. Baltimore & Ohio.380 Pennslyvania Central.411 Philadelphia & Reading.14? New York & Erie.464 New York Central.556 Illinois Central. 705 Michigan Southern & Northern Indiana.525 Pittsburg, Fort Wayne & Chicago.467 Ohio & Mississippi.331 Mobile & Ohio.363 New Albany & Salem.. . 284 Michigan Central.284 Memphis & Charleston.287 Georgia.233 Galena & Chicago Union*.340 Cost. $25,000,000 $30,000,000 $24,000,000 $33,000,000 $32,000,000 $28,000,000 $17,000,000 $17,000,000 4 26 Chicago, Alton & St. Louis.281 Chicago, Boston & Quincy.263 Chicago & North West.242 Chicago & Rhode Island.228 Great Western (Canada).357 Grand Trunk.1096 PURCHASE OF THE WESTERN ROAD. It is urged that the Commonwealth has a right to purchase the Western Railroad franchise at a rate which would be largely remunerative, and that it would be against its interest to consolidate the two roads on this account. This project of seizing the property of stockholders, who have purchased it in good faith, and of disposing of it to other persons, so as to make a large sum by the operation, was originally and recently started at a meeting of the Boston and Worcester Railroad Corporation, when the subject of consolidation was under consideration. That such a proposition should be deliberately proposed at this day and in a commonwealth like Massachusetts, only shows the bitterness with which the controversy is conducted on one side, and demonstrates how the most consci¬ entious, upright, and honorable men may be led astray by the appearance of a temporary advantage, in appealing to the selfish hope of unlawful gain on the part of the public. The time is not far distant when all who have joined in this cry will lament that they lent to it their voice, and they will feel more mortification in the reflection than they can of resentment at any remarks of mine. It would be impossible to conceive of a more direct and violent stab at the honor and honesty and high character of this community than such a suggestion as is here made. The adoption of such a principle, yes the appearance of adop¬ tion of such a principle would do more to lower the character, diminish faith in the honor, and render doubtful the credit, of this Commonwealth, than even a direct attempt to repudiate its honest debts, — for we should feel assured that the last-mentioned course would excite such a universal con¬ demnation that the step would be retraced; but who can have confidence in public faith when the Legislature will for a moment listen to the specious suggestions of self interest, in a matter where the lack of principle is not so palpable, nay, where an adroit and plausible argument can be made, and where men of marked ability do argue in favor of the seizure of private property under a claim of legal right. By pursuing the course proposed, admitting, which I do not, its strict legal¬ ity, the Commonwealth might realize a few hundred thousand dollars ; but it would lose uncounted millions of dollars in the diminishe4 value of all rail¬ road and other corporation securities, — at home and abroad, — and it would forever lose its exalted character for the strictest honor — the purest faith — the most exalted statesmanship, and must descend and forever take a place among those ignoble and miserable communities which have made ship¬ wreck of all that can dignify and ennoble a State. 27 Of the legal right of the Commonwealth to seize the Western railroad, I shall say nothing. After the argument of the solicitor of that corporation,— an argument as remarkable for legal acumen as for the clear, compact, and forcible statement of the precise points involved, — an argument which, the gentleman from Worcester will pardon me for saying, has not been answered, and which, in my poor judgment, never can be answered. I shall make no attempt to examine here the legal question of right. And I am almost sorry that my friend (Mr. Colt) made the illegality of the proposed course so plain, because I wish you could be able to say at once to the Legislature and to the world, “We do have the right, — we know that we have it, but it is aright which Massachusetts never will exercise. Her honor, her integrity shall not only be above the necessity of defence, but above and beyond all suspi¬ cion of taint. Never shall we pursue a course, or for one moment think of pursuing one that will detract from her ancient fame, or render her less worthy than she always has been to take a stand with the first States in the world.” I speak strongly on this point, but nO more so than the occasion requires, — no more so than is justified by the well-knowti facts of the case. What are those facts ? In 1839, this great enterprise was likely to fail. The revulsion of 1837 had so prostrated the commercial community that it seemed impossible to raise funds sufficient to complete the work. The Commonwealth had already advanced a large sum, when the corporation applied for an additional loan of $600,000. As security for this loan and for the purpose of enabling the State to have entire control in case of failure on the part of the corporation, the Act au¬ thorizing the loan provided in addition to a mortgage that the Common¬ wealth might at any time purchase the franchise and property by paying the corporation such sum as would reimburse them the amount of capital paid in, with a net profit thereon of sevgn per cent, per annum. You know, I know, all the world knows, that this was intended as security to the State for the loan. It was intended to meet, and it did most effectively meet, the argument that it would be impossible for the road to be completed, even with this assist¬ ance, and it was inserted in order to give the most ample power to take pos¬ session immediately in case the corporation was unable to go on. Well, the road has been completed. The debt has substantially been paid. It can be actually paid to-morrow, if the State desires it. In such a transac¬ tion between individuals, any court of equity in the known world would, un¬ der the circumstances, decree that the security given for a debt must be given up, the debt having been paid. The Commonwealth have so viewed the matter; the corporation have so regarded it. The whole world has so understood it. And the provision slept for twenty-four years until it was raked up at a meeting of the Worcester Railroad Company, and the extraordinary doctrine was propounded that the 28 State might exercise the right to purchase this road at a rate which would be largely remunerative. And you find, that, just as this hearing was about to commence another committee ivas appointed to consider this very subject , and hints are dropped all round that the State can make something by the sharp operation of tak¬ ing this road from those who own it. But this is not all. There are other facts that show the character of the proposal still more. Since the loan act of 1839, there have been a variety of Acts of the Legislature, all showing conclusively that the State considers the road as resting on the same foundation as other roads in regard to the State’s right to purchase , and that the provision in 1839 is waived. Let me call your attention to one fact particularly, in order to show more clearly the nature of the proposed Jeremy Diddler operation. In three instances since 1839, the Legislature has authorized the Western Railroad corporation to increase its capital, and the Commonwealth as a stock¬ holder to a large amount has had the advantage of this increase , and the treas¬ urer by one of the Acts was authorized to sell the Commonwealth’s proportion of the new stock and pocket the premium thereon. And now , after people have bought the stock and the Commonwealth has got the premium, it is solemnly pro¬ posed to take this stock back by paying for it less than par, and compelling those who purchased to lose the difference between this and what they paid ! That is to say, the treasurer of the Commonwealth of Massachusetts sells shares, say at 120, and takes the money, and years afterwards seizes the shares at ninety-seven, and compels the purchasers to lose twenty-three dollars per share! The same injustice would apply to the other shareholders. The shares are widely distributed, here and abroad. They cannot be identified. Many of them have been purchased at a high figure. The stock has been a favorite investment. Much of it is owned by widows, orphans, trustees. Consider now, the justice (even if you had the legal right) to take this at two-thirds of the present market value and sell it for full price, pocketing the difference, and calling it a business-like operation ! But it is said, purchasers of stock are bound to know the law. This is very well as a legal maxim in a criminal court. You tell the horse-thief of this, when he pleads ignorance. But people who buy Massachusetts stock are not suspicious. They fear no tricks. .They suppose all is fair and above board. They supposed this road stood on the same legal foundation as other roads in the Commonwealth. Again, it is said, the State might or would discriminate between the stock¬ holders, that is, the State might not be willing to seize the stock its own treasurer had sold for less than was paid for it, and would make such purchas¬ ers whole. But how are you to trace the stock ?' It is impossible to dis¬ criminate ; and if you admit that a decent regard for honesty requires this, then your whole project is destroyed. 29 And then, allow me to ask, what do you propose to do with the Western Railroad when you have got it into your hands ? Do you mean to run it ? No monopoly here ! No danger here of political influence and power ! Nothing alarming in the State running the biggest corporation in New England ! Do you propose to sell it ? Nothing tempt¬ ing here ! No lobby influence in all this ! No danger of peculation and fraud and cheating here ! Or will the Boston and Worcester Railroad stand ready to buy the road and run it, free and clear from all political influence, and governed by those broad and liberal views which some of the Directors have so clearly developed, by means of which the resources of the State can be developed, and tea, sugai*, and molasses made cheaper in the city of Wor¬ cester ! • ' ■