THE H008AC TUNNEL OUR FINANCIAL MAELSTROM. By F. W . BIRD. “ Beyond the lowest depth , a lower deep.” BOSTON: WRIGHT & POTTER, PRINTERS, No. 4 SPRING LANE. 1 8 6 6 . T T 5 t-Sk c-A x - THE HOOSAC TUNNEL. Before discussing the management and condition of the Hoosac Tunnel, and the policy and duty of the State, we present a brief historical sketch of the legislation relating to the enterprise. We shall see how it commenced as an ordinary and harmless railroad corporation, asking only, in the language of the petitioners to the legislature of 1848 in aid of the enterprise, “ for the privilege of building their own road with their own money next, it asked a loan of the State credit for two millions of dollars, accompanying the petition with the most positive and confident assurances that, with that assistance, the friends of the work could and would furnish abundant means to complete it; and asking only that the scrip should be delivered in instal¬ ments, as the work progressed, so that the last instalment should not be delivered till the work was finished ; next, asking a modification of those conditions more favorable to the projec¬ tors ; next, asking of the State, with other favors, as advance or gratuity or both, some four hundred thousand dollars ; at every successive step more and more confident that with the help asked at that time, the work could be completed ; and proving this every time to the satisfaction of packed committees, and deceived legislatures, until at length the scheme was saddled upon the State treasury, with less than one one-tenth of the actual work done at a cost already nearly equal to the , original estimates for the entire work. Let these facts be borne in mind that we may know what, confidence can be Q placed in the statements of the same parties as to the condition, £ or in their estimates as to the cost of the completion of the ^ work. The Troy and Greenfield Railroad Company was chartered in 1848. The petitioners asked for an ordinary charter, simply for the privilege, to use their own language, of “ building their 781305 4 own road with their own money.” The majority of the com¬ mittee reported adversely ; but the minority reported favorably, placing the claims solely on the ground of the necessity for additional railroad accommodations for the western part of Franklin County, and the northern part of Berkshire County, and that the people of that section of the State were entitled to the same facilities for building a railroad as had been granted to other sections of the State. The estimated cost was $3,500,000, and the petitioners proved (!) that the entire road from Troy to Greenfield (exclusive of the tunnel,) would be built in eigh¬ teen months, and the tunnel itself, without any shafts, in fifteen hundred and fifty-six days, just five years. Three years after, in 1851, the corporation applied to the legislature for a loan of the State credit for two millions of dollars. Instead of having road and tunnel completed, they stated at that time, that “ three hundred thousand dollars have been subscribed to the capital stock, and about three thousand dollars paid in. The work of construction has been commenced in the present month, but little has been done—nothing completed.” The committee reported a Bill which passed the Senate but was defeated in the House. In 1853, the application for a loan was renewed ; a majority of the committee reported favorably. The Bill passed the House, but was defeated in the Senate. The amount of stock paid in at this time was $88,831. In 1854 the application was renewed, and was successful. The Bill was based upon the representation of the petitioners that the whole cost was to be between three and a half and four millions; the State was to furnish the two millions to build the tunnel, estimated by their engineer to cost about two millions, and the corporation was to furnish the balance neces¬ sary to finish the road, the whole to be mortgaged to the State as security for its advances, and “ the different portions of the road and sections of the tunnel to be advanced together.” At this time the amount of capital stock paid in was ninety-four thousand dollars. Soon after the passage of this Act, desperate appeals were made for subscriptions to the capital stock, the result of which appears in their annual report, made in 1856, giving the amount of capital stock paid in as $121,412, showing 5 an addition of $27,412 to the amount of stock paid in during two years. In 1855 an Act was passed authorizing certain towns on the line to subscribe three per cent, on their valuation respectively to the capital stock. If all the towns had subscribed the full amount, it would have given $259,283. The amount actually paid in was $125,000. In 1856 they asked the legislature to subscribe for $150,000 of the stock. The proposition was rejected in the House by a vote of 83 to 192. In 1857, an Act modifying the provisions of the Loan Act passed both branches, but was vetoed by Governor Gardner, passed in the House over the veto, but failed of a two-thirds vote in the Senate. This year the parties abandoned the idea of a local road, and for the first time raised the cry of a great commercial road, which was to pour the wealth of the West into Massachusetts and Boston. In 1859 another modification of the Loan Act making still further concessions to the corporation was passed, but during this year very little was done. Up to this time the legislature had adhered firmly to the policy of the original Loan Act, which was, that the advances by the State should be made pari passu with the progress of the work, requiring bona fide subscriptions to the amount of $600,000, with other conditions furnishing something like security that the work should be completed before the whole amount of the loan was advanced. The Act of 1860 took a long step downwards. It released the corporation from the $600,000 subscription, (up to this time they had actually raised in cash, according to Mr. Kim¬ ball’s report,—House Doc. No. 185, 1860,—$66,058.28 !) and made other concessions to the corporation ; but the legislature still adhered to conditions which, if they had been honestly interpreted, would have secured deliveries of the scrip in pro¬ portion to the work done , and the delivery of the last scrip only when the work was completed. Unfortunately for the State, the governor at that time, and the State engineers appointed by him, adopted the constructions put upon the Act by the contractor, (Herman Ilaupt,) the result of which would have been that the whole amount of State scrip would have been 6 delivered before the road and tunnel were half completed . In May, 1861, William S. Whitwell was appointed State engineer, and adopted the only fair and honest construction of the Act. The result was, that in the summer of 1861, the contractor abandoned the work. The action of the executive council of that year shows, strikingly and sadly, how completely, for the previous three years, the tunnel had dominated the legislative and executive departments of the State. (See Appendix A.) Legislation of 1862. We come now to the most extraordinary of the acts in this wretched drama. Mr. Haupt could not go on under Mr. WhitwelFs construction of the Act of 1860, and the corporation nominally, Mr. Haupt really, came to the legislature of 1862, asking additional favors. As usual, a committee was packed in his favor, and reported all he asked. Among other things, they recommended the payment of $150,000 to the corporation, (Haupt was the corporation,) in reality, to pay Haupt’s debts, on account of alleged injustice done to him in the construction put by Mr. Whitwell upon the Act of 1860. The bill was defeated. Then occurred the most remarkable trick of legisla¬ tive legerdemain ever performed, I think — at least, in this State. The farce of a hearing had been played before the committee on this subject. A few gentlemen appeared before the com¬ mittee for the purpose of aiding in investigating the condition and character of the enterprise. It was very soon found that the conclusions of the committee were already foregone. With perhaps a single exception, the committee was completely con¬ trolled by the tunnel interest, or rather by Mr. Haupt. Indeed, so perfectly did he dominate the committee that, at first, the chairman habitually refused to allow us to open any matter without his consent. The result was what we expected—a unanimous report, giving Mr. Haupt all he demanded. Pre¬ cluded from any expression of facts through a minority report, we were forced to make our appeal to the legislature through other channels. The report of the committee proceeded upon the assumption that Mr. Haupt had been wronged by Governor Andrew and 7 the State engineer, and their whole purpose was to give him redress. Accordingly, they recommended the payment, (nom¬ inally to the corporation, really to Haupt,) of $150,000 and an advance of $195,000, for work to be done, and, also, the payment to him of all sums he should expend for machinery, Ac., (including pneumatic drills,