~r"7'5br / THE liBRARY OF THE UHlVERSiTY OF ILLINOIS /O " THE EOAD TO RIJIH: OR, THE etlitte anb Jfall OF THE HOOSAC TUNNEL. Save Me from My Friends.” By F. W. BIRD. BOSTON: WRIGHT & POTTER, PRINTERS, 4 SPRING LANE. 1 8 6 2 . C C> Wv . I ^ . H 'i X i 2 "(JK 355,4 T7‘5J>r 'Y a * REVIEW. C\ , cs We would gladly avoid the task before us. We entered upon the examination before the Committee, conscious of no other pur- pose than to aid in an honest, impartial, thorough investigation of a matter of public policy. We expected, of course, that just that and no other would be the purpose of the Committee. Before the second day’s hearing closed, we found that there was an iron majority of the Committee against any such investigation. We ' hope no one of that majority entertains so poor an opinion of our ! penetration or good sense as to suppose that we were, for a moment, deluded with the idea that the hearing was any thing but a farce. We charge no conscious intention of unfairness upon that majority. We are inclined to believe that they really thought they were giving us a fair hearing. The more’s the pity I We did our best to get facts before the Committee, in the way of documentary papers and by the testimony of experts. We did not suppose any of them would alter a foregone conclusion ; we did hope that some of them would find their way into a report. How mistaken we were, the report tells. There was but one course left ; and that was, to bring out the facts, as we intend to do in the following paper. To myself, personally, this duty is very painful. I fear it will 'cost the alienation of dear friends. I shall be assailed as hostile v; to an enterprise to which I have always been and am still friendly. So strongly was I in favor of it that I accepted the constant assev- erations of its friends (and mine) that every thing was all right. Recent events have opened my eyes. I have seen whole tiers of towns, once the strongholds of Freedom, swung over, in almost solid column, into the ranks of the pro-slavery democracy. Where once rallied the indomitable Swiss Legions, doing yeoman service for God and Liberty, now muster only Hessian mercenaries bawling “ Beef ! Beef ! ” The representatives in the House (by the election u 56485 4 of my friend from Greenfield, the Senate was saved from that disgrace) with a few noble exceptions, make this scheme paramount to every consideration of public policy and political principle. I already hear tlie howl which this declaration will let loose upon me ; but it is true ; and there is not an intelligent man in the House v)ho does not know it^ nor an lionest one who does not lament it. Come what will to me personally, I shall do what I can to lay bare tlie malign influence which is working such mischief. Historical. Before examining the extraordinary Report of the Joint Special i Committee on the Troy and Greenfield Railroad, and the still more extraordinary Bill accompanying it, we present a very brief histor- j ical sketch of the legislation relating to the enterprise. We do j this for the purpose of showing how entirely the cliaracter of the i tunnel ” has changed so far as its relations to the State are f concerned. We shall see how it commenced as an ordinary and I harmless railroad corporation, asking only, in the language of the j petitioners to the legislature of 1848 in aid of the enterprise, for* the privilege of building their own road with their* own money i until it now asks that the key of the State treasury may be deliv- ered to its contractor to finish a work in which all its original friends have long ago refused to invest a single dollar. The first charter was, chap. 307 of the Acts of 1848, an ordinary Act incorporating a railroad company, requiring the road to be located and built within seven years ! By chap. 108 of the Acts of 1849, they were authorized to alter the location. By chap. 312, Acts of 1850, the time for changing the location was extended. In 1851 the company applied for a State loan, and was refused. Chapter 40, Acts of 1852, is unimportant. Chapter 297 of the same year authorized a union with the Southern Yennont Railroad Company. In 1853 another ajqdication for a loan was defeated. In chap. 220, Acts of 1854, their importunity was rewarded by the passage of “ An Act authorizing a loan of the State credit to enable the Troy and (Irccnricld Railroad Company to construct the Iloosac 'runnel^ 4''his Act {)rovidcd for a loan of credit to the amount of •‘f>2,000,()0() upon condition, that when six hundred thousand dollars had been subscribed to the stock and twenty per cent, actually paid in, seven miles of road built, and one thousand lineal feet of the tunnel “completed,’’ then one hundred thousand dollars of scrip should be delivered, and so on ; carefully providing that payments on the subscription shall keep pace with the deliveries of tlie scrip, so that the whole of the six hundred thousand dollars must be paid in before the scrip is all delivered ; and also, “ subject to this proviso, that the last two hundred thou- sand dollars of said scrip shall be reserved until said company, their successors or representatives, have opened said railroad for use through the Hoosac, and laid a continuous railroad from Greenfield to the line of the State in Williamstown.” Observe, the legislature required this subscription of 1600,000 to build the railroad^ and loaned their credit “ for the purpose of enabling the I said company to construct a tunnel and railroad under and through \ the Hoosac Mountain.” Ten per cent, of each issue of scrip, and I $25,000 annually, after the opening of the road, were to be applied to a sinking fund. Chapter 294, Acts of 1855, authorized certain towns to subscribe to the stock. In 1856, finding that they could not procure the subscription of $600,000 necessary as a condition precedent to their receiving the State scrip, tlie corporation petitioned the legislature for a State subscription of $150,000 to the stock, to enable them to draw the State scrip ! This cool proposition was defeated. Chapter 237, Acts of 1856, authorized a change of location, “in such places as will, in the opinion of the chief engineer, improve the line of the road, shorten the same, and diminish the cost of construction.” In 1857, an Act modifying the previous Acts for the benefit of the corporation, (or rather contractors,) passed the legislature, but was vetoed by Governor Gardner. Chapter 117, Acts of 1859, is a modification of the Loan Act of 1854, more favorable to the corporation, but under which nothing was done. We have sketched this history in detail to show the successive steps by which, from asking only to “ build their own road with their own money,” they come to getting a loan from the State of $2,000,000 upon condition of furnishing from other sources $600,000. They broke down in this, having succeeded in raising in cash only $66,058.28. (See Mr. Kimball’s very elaborate report, House Doc. No. 185, 1860.) It is true, by some sort of legerde- main, Mr. Haupt — for he bad now literally pocketed the corpora- tion — managed to get out of the State some two or three hundred thousand dollars of scrip by bogus subscriptions to the stock, which he could well afford to make, having made a contract to receive four million dollars for building road and tunnel which he says can be finished, all complete for about 12,100,000, omitting all considerations of interest!” which four millions embraces a bonus of i300,000 as a consideration for subscribing for $600,000 of the stock. The diagrams annexed show how the tunnel has also changed in its character, growing “ small by degrees and beautifully less.” The Act of 1860, chapter 202, is a still longer step on the down- ward road. It abandons the requirement of the $600, OOC' subscription by other parties ; abandons all payments into the sinking fund ; abandons the security of requiring the road to bf built pari passu with the tunnel, divides the unexpended portior of the loan, giving $650,000 to the road, and $1,120,000 to th| tunnel ; but requires that the work shall be substantially peij! formed ;” and provides, that the deliveries of scrip shall be a the rate of fifty dollars for each lineal foot of tunnel,” whicl would bore the mountain with the $1,120,000, provided they can keep on at that price ; and also, that — “ The scrip shall be delivered on the road in the proportion which the value of the work done and the materials delivered each month bears to the estimated cost of the whole work and materials required on the portion of the road aforesaid.” Now, any one who looks at the Act even superficially will see that this last furnishes the only security which the State has, that her money wilt not all he spent and the road abandoned, long before it is finished I And yet the Re[)ort of the Committee, now before us, flings away even this last vestige of security which the State has that the work will I)e ‘‘ substantially performed.” In the order of history, we come now to this last, longest downward step of all — “ licyond tlie lowest depth a lower deep,” and into this the Committee have plunged. Before dissecting this extraordinary document — without a I parallel in the legislative reports of Massachusetts — it will be ') necessary to trace the history of this present controversy. ' When Mr. Whitwell, the State Engineer, appointed in May, , 1861, came to determine the amount of the work done on the I road in June, and ‘‘ to estimate,” as he is required by the Act, * “ the proportion which the work done upon the road since the preceding estimate bore to the whole of the work to be done,” he found that if he issued his certificate for scrip to the corpora- I tion, that is, to Herman Haupt, on the same basis as his prede- , cessors, Messrs. Lincoln and Stevenson, had done, it would I require, after the whole of the $650,000 had been issued by the I State, a large additional sum to finish the graduation, masonry, bridging and superstructure in a “ substantial ” manner. He .therefore issued his certificate to the Governor for what he con- sidered due. Mr. Haupt claimed about a hundred thousand dollars additional, and the work was suspended. The matter came before the Executive Council. It was referred to a committee .consisting of Messrs. Hugh W. Greene, Joel Hayden and E. C. Sherman. A hearing was had, and the witnesses examined were Messrs. Ezra Lincoln and C. L. Stevenson, the two State engineers whose estimates Mr. Haupt claimed were the correct ones ; Mr. H. Harley, Mr. Haupt’s engineer ; Mr. Henry Cartwright, Mr. Haupt’s partner; Mr. E. L. Childs, Mr. Haupt’s bridge-builder ; Mr. B. N. Farren, one of Mr. Haupt’s sub-con- tractors ; Mr. Herman Haupt himself; and Mr. William S. Whit- well, the present State Engineer. (Mr. John A. Haven, editor of the Railway Times, was called to testify in regard to the author- ship of an article in his paper.) With the exception of Mr. Whitwell and Mr. Haven the witnesses were entirely agreeable, and of course the committee came to a unanimous conclusion ; and that was, to recommend to the Council to direct the State Engineer to revise his estimates upon the basis established by Colonel Lincoln,” “ and that those conditions, estimates and prices shall be the basis of all future payments, until otherwise ordered by the Governor and Council.” The conclusions of this ex parte hearing not being entirely satisfactory to the Governor, another hearing was had before the Governor and Council, to which a large number of the most accomplished and scientific civil engineers, railroad superintend- 8 ents and contractors were summoned at the request of both parties. With entire unanimity the testimony of these experts sustained Mr. Whitwell upon the points upon which he differed from Messrs. Lincoln and Stevenson. In this state of the case, the matter came before the Joint Special Committee. Up to this time the only question had been, Were Messrs. Lincoln and Stevenson right in their basis of estimates ? or was Mr. Whitwell right in his ? If the former, Mr. Haupt was entitled to a considerable additional amount ; if Mr. Whitwell was right, he had no claim. The dnty of the State Engineer is very clearly defined in the Act 1860, chap. 202, sect. 3. We copy those parts of the section which bear upon this point : — “ He shall monthly, immediately after the first day of each month, esti-[| mate the proportion which the-work done upon the road, since the preceding^ estimate, bears to the whole of the work required to be done in the gradua-l tion, masonry, bridging and superstructure of said railroad east of thJ Hoosac Tunnel, and also the work done in the excavation of said tunne| which he shall certify separately to the governor, together with the amounj' of state scrip to which the company is entitled under the provisions this act. The deliveries of scrip shall be at the rate of fifty dollars for each lineal foot of tunnel, divided between heading and full sized tunnel, in the propor- tion of thirty dollars for each lineal foot of heading and twenty dollars per lineal foot for the remaining excavation ; and of six hundred and fifty thousand dollars for the whole of the graduation, masonry, bridging and superstructure of the unfinished portion of the road east of the tunnel. The scrip shall be delivered on the road in the proportion which the value of the work done and the materials delivered each month bears to the estimated cost of the whole work and materials required on the portion of road aforesaid. No expenditures shall be required merely for the purposes of ornament, but the work shall be substantially performed, and the rails shall weigh not less than fifty-six j)ounds to the lineal yard: for any defective materials or work, a fu’oportionate arnoimt of scrip shall be withheld.” Now what (lid tlie State, by that Act, agree to do V Not to give to the corj)oratioii f 660, 000 ; not to subscribe that amount to its capital stock ; not to place that amount at the disposal of the State Engineer to be certified away by him for such a road as he thinks | s;itisfactory ; but it was to be loaned to the corporation in sums,/ 9 from time to time, in proportion to the progress of the work ; and so proportioned, that the whole money should be advanced only when the whole work should have been “ substantially performed.” This was the only security the State had that the whole of her money should not be spent before the work was finished; and then she should be compelled to finish it or lose the whole. On the other hand, Messrs. Lincoln and Stevenson and the Committee of the Council take the absurd position that the basis which was adopted for the first month’s estimate should be adhered to, till the whole money was paid out, although it should be found, in the progress of the work, as it has been found in the history of many or quite every railroad in New England^ that the actual cost of construction exceeded the original estimates from twenty-five to fifty, and often, a hundred per cent. It has been very material to Mr. Haupt, in order to force upon the Loan Act the construction necessary to answer his purposes, to mystify and pervert its requirements. Here are the portions which define the duty of the State Engineer — -not of the State Engineer first appointed, but of the State Engineer who shall be ‘‘ appointed annually “ He shall monthly^ immediately after the first day of each month, estimate the proportion which the work done upon the road, since the preceding estimate, bears to the whole of the work required to be done in the graduation, masonry, bridging and superstructure of said railroad east of the Hoosac Tunnel.” “ The scrip shall be delivered on the road in the proportion which the value of the work done and the materials delivered each month bears to the estimated cost of the whole work and materials required on the portion of the road aforesaid.” “ For any defective materials or work a proportional amount of scrip shall be withheld.” Now we affirm that it is not possible to express more clearly the intention of the legislature than is here done ; namely, that the payments shall be made, from month to month, in such amounts as to moAntain the proportion which the work done and the work to be done bear to the portion of the loan advanced and the portion to be advanced. Most clearly, then, it is the engineer’s duty, at the end of every month, to answer these questions: What is the whole amount of work done and materials furnished to this time ? What is the whole amount of work to be done and materials to be furnished to 2 10 complete the wliole road “ substantially ” ? The sum of these constitutes the whole work and materials as required by the statute ; and the proportion which the work done and materials delivered up to that time bear to the whole amount of work and materials for the entire road, furnishes the proportion wliich the amount due up to that time bears to the whole loan ; and the difference between that amount and the amount of scrip previously issued determines the amount of scrip due for the last month’s estimates. Let us illustrate. Suppose that when the engineer came to make up the estimate for the payment for the June work, he found, upon ascertaining the amount of work and mate- rials up to July 1st, and estimating the amount of work and materials required to finish the road, that nine-thirteenths of the whole road was finished. The contractor was thus entitled, for all the work done to that time, to nine-thirteenths of the loan, or $450,000. But he had received for estimates up to the first of the preceding month $355,000. He was therefore enti- tled, for the month of June, to $95,000. Now it is perfectly clear tliat it is only by retaining these proportions that the engineer preserves the only security the State has for the completion of the work ; and it is not possible to preserve these proportions with- out changing the prices from time to time as the changing character of the work requires. As we have elsewhere said, and it wdll bear repetition — for it is of the utmost importance— -the rigid adherence to this rule, from month to month, is the only security the State has that the loan shall not be exhausted long before the work is done. Now what was the actual difference between Messrs. Lincoln and Stevenson and Mr. Whitwell ? It was this : Upon carefully examining the road as soon as possible after his a})pointment, Mr. Whitwell found, among other items of what the Act calls “ defective work,” that the slopes had been left at so steep an inclination, that large amounts of earth would inevitably slide, and require to be taken out of the ditches before the road could he safely worked ; and, worse still, he found that a large amount of trestle-work, fit only for temporary use while building the road, had been put up, some forty or fifty feet high, which in his judgment as well as that of every competent engineer, should have been earth embankments. As an honest man he would not 11 certify that this work was properly done when it was not, and when he had no security that it ever would be done ; and as an engineer, he could not certify that such work complied with the requirements of the Act that the work should be “ substantially performed.” No respectable engineer has been found who does not say tliat this work must be done before the road is in a con- dition for use. Even Mr. Lincoln, Mr. Stevenson and Mr. Haupt now admit that this work must, sooner or later, be done by somebody; but they claim that Mr. Haupt is entitled to the whole of the State loan before doing this work, thus leaving the whole of it to be done by the State, for the obvious reason that nobody else will put a dollar in the enterprise. On the other hand, Mr. Whitwell claims that the statute requires this work to be done before the State loan is all expended. Here are the items of this imperfect work : 1. Slopes. All the slopes in the cuttings were left at an inclination of one foot horizontal to one foot vertical, or “ one to one ; ” that is, at an angle of forty-five degrees ; whereas Mr. Whitwell decided, (and his decision is sustained by the uniform testimony of railroad engi- neers and experts, and the uniform practice of all Neiv England railroads,) that they should have been left at an inclination of one and a half feet horizontal to one vertical, or “ one and a half to one ” — that is, at an angle of thirty-three degrees. Upon this point the testimony and the facts are so overwhelming that Mr. Haupt has practically abandoned his original position . In his argument before the Committee of the Council he says : “ The slopes on the Troy and Greenfield Railroad have been precisely the same as the slopes on the Pennsylvania Central road, and on many other roads and then adds broadly: ‘‘We claim that the slope which has been given — one to one — is, under all the circumstances, the best possi- ble ; that in many cases, a greater slope would render it necessary to extend the excavations nearly to the summit of the hills.” (That is, having changed the location of the road to steep side-hill cuttings, to save first cost, and at the expense of heavy subsequent repairs, he pleads his own wrong-doing to justify his subsequent short-comings ; in other words, he can’t make proper slopes because, to save money, he put the road on side-hills where no competent engineer, acting in 12 good faith, would have located it.*) We drove him from this unte- nable position — disreputable for any engineer to attempt to occupy — by quoting from subsequent reports of this same Pennsylvania Central road, (pages 21 and 22 of Gov. Boutwell’s argument,) showing that this very model road of his had been obliged to spend large amounts of money in reducing these very slopes wliicli Uaupt says were “ the best possible.” He attempts to evade the crush- ing effect of these quotations, by saying in his reply to Gov. Bout- well : “ The cuts referred to were rock, taken out originally with rock slopes, but a rock that disintegrated rapidly, and masses had to be removed to keep them from falling.” To this we reply, first, that a competent engineer would have known that the rock would “ disintegrate rapidly,” and would have taken it 'out to proper slopes at the time, and not left the falling masses to endanger life by falling upon the track. Second. We reply that the extracts disprove his statement, showing*, as far as they speak of the material, that it was some- times “ soft earth ;” sometimes ‘‘ rock and earth ;” the worst pos- sible material, inasmuch as rocks, carried down with the earth, and rolling upon the track, are much more mischievous and dangerous than mere earth-slides. We also proved, by the testimony before the Governor and Council, and by others, that cuts in New England will not stand at a slope of one to one, or an angle of forty-five degrees ; that in a short time all earth cuttings will, under the operation of rains and freezing and thawing, take a slope of about one and a half to one, or about thirty-three degrees — some soils, especially clays, even flatter than that — and that the uniform experience of all New England railroads has been, that where cuttings were left at a steeper slope than one and a half to one, the earth has fallen into the ditches, and has always cost more to remove it when thus fallen than it would have done to reduce the slope properly in the first instance. On this point the testimony is uniform, that every well conducted railroad company considers it cheaper and better to finish the slo{)es hefore opening the road for trafiic. Mr. Whitwell very })roi)erly decided that the Loan Act in requiring a ‘‘ substan- tially” built road, rcipiired this sloping to be done. Mr. Uaupt * \Vli;it, will they do if they should ever need to lay a double track on this side- hill road-be*i V 13 very wisely, in his closing argument, had very little to say of the matter of slopes. 2. Trestle-Work. Over deep ravines Mr. Haupt had built trestle-work instead of earth embankments. He admits that this was temporary, and that, sooner or later, earth embankments must be substituted ; yet he claimed that he must have the whole of the loan without filling up the trestle-work, leaving it for the State to do it after he had got his money. Mr. Whitwell claimed that the work was not “ substantially performed” till this earth-work was done ; and here, too, he was sustained by the uniform testimony of the experts. Besides, it was shown that the trestle-work was of the most unsubstantial character ; that Mr. Haupt had never ventured a locomotive upon it, and every expert gave it as his opinion that no prudent engineer v)ould ever venture a \ruin over large portions of it. We understand that Mr. Haupt and his friends are making strenuous efforts to mystify this matter of the trestle-work. They say they have not been paid for it. Nobody says they have. This is not the point at issue. If the matter needs any farther explanation, here it is : Mr. Whitwell found that Messrs. Lincoln and Stevenson had estimated this trestle-work as “ completed ” road — that is, that in estimating the whole amount of work required to finish the road, according to the Act, Messrs. Lincoln and Stevenson had not included the earth-vwrk necessary to fill up these ravines as constituting any part of ‘‘ the whole work to be done and upon their basis of estimates, the whole of the 1650,000 would have been paid over to Mr. Haupt, and this work would have been left undone. The amount required to fill up this trestle-work would be over 100,000 yards, costing some $20,000 to $25,000. Mr. Whitwell claims that the filling of these ravines forms just as much a part of the contract to build a ‘‘substantial” road as any other part of the earth- work ; and he is therefore compelled, by the requirements of the Act, to include this work in “ the estimated cost of the whole work and materials required ” to finish the road. 3. Rip-Rapping. The embankments exposed to washing by the river should be rip-rapped, that is, covered with loose rock. 14 4. Bridges. Eepairs of bridges, or making them safe, particularly that over Green River. The first and only time this bridge was tried, it broke down. Mr. Haupt has labored very hard to show that the defect was in some of the material, which could be remedied at com- paratively small expense ; but the best testimony went to show that the defects are inherent. Mr. Vose, wlio examined this bridge carefully, and who is an accomplished and scientific engineer, gave it as his unqualified judgment that it is impossible to make the bridge safe by any repairs that can be made ; and the cheapest and only ivay is to pull it down and build anew,^’’ No one attempted to question the correctness of this statement.* V 5. Culvert Masonry. When the trestle-work comes to be filled, culverts will be necessary, for which no allowance has been made. These culverts, the base of such high embankments being very wide, will be necessarily of heavy masonry and the cost large. Upon the lowest estimates of the cost of these items, we arrive at the following as the amount which must be spent to make it a “ substantially” built road ; but which Mr. Lincoln and Mr. Haupt leave for the State to do after the present loan is gone : — Slopes to be reduced. . 110,000 00 Trestle-work to be filled up. 20,000 00 Rip-rapping, . Culvert masonry, including that under 7,500 00 trestle-work. . 20,000 00 Repairs of bridges, . . 10,000 00 New bridge over Green River, 20,000 00 Additional earth. . 9,000 00 ‘‘ rock. , 13,000 00 “ loose rock. • 4,000 00 $113 500 Now every item of this work is to be done by somebody, and every dolliii- of tliis money to be paid, before tlie road is in a proper condition for use — the only dilference being, that Mr. Whitwcll ♦Appendix, [A.] 1 15 claims that the Loan Act requires tlie corporation, that is, Mr. Haupt, to do it ; while Mr. Haupt claims the money without doing it, leaving it to be done by somebody who shall turn up. But this is only a small item of the amount which the State will be called upon to pay, before the road can be of any use or any value as security. When the Loan Act of 1860 was passed, it was stated that means were expected from other sources to pay for indispensable outlays for superstructure and equipment. Hon. Moses Kimball stated that such was the testimony of the advocates of the Act before the committee. Among these outlays are those for land- damages, switches, side-tracks, turn-outs, turn-tables, station- houses and rolling stock. For these items we take Mr. Steven- son’s figures, (statement, page 8) which he himself says are Land-damages, 11,000 per mile, Fencing, 19,200 rods, at ^1.00, Depots, stations, fixtures, cars, 110,000 per mile. Half mile of road east of tunnel. Bridge across Deerfield River, nt . $30,000 00 . • 19,200 00 engines, y the terms of the contract, and the vote of tlie corporation, this iron belongs 29 to the Rensselaer Iron Company, until it is paid for in full. Of course, they will not discharge tlieir attachment until tliey have received the uttermost farthing of Mr. Haupt’s debt to them. We understand that Mr. Haupt now says, that this contract only applied to iron delivered west of the mountain and is not now in force. We have to say : 1st. By the terms of the vote, it applies to all iron delivered, as well for the road east of the mountain as west. 2d. Nobody pretends that the vote has been rescinded by the corporation, and if it has been, 3d. Such rescinding vote is invalid unless accepted by the Rensselaer Iron Company. The matter is of such importance that we must be excused from taking the statements of the party in interest against the record. But Mr. Haupt’s friends argue that the fact of the Rensselaer Company attaching the property proves that they do not claim the iron under that contract. It may be on the other hand, that the attachment was laid to cover a possible defect of title under that lien. Again, it is urged by his friends that the attachment is of itself a waiver of all claim under that contract and voids it. This is a nut for the lawyers to crack. If it be so, then the Iron Company will hold only under their attachment. Either way, it shows how false has been the faith towards the Commonwealth. If the contract holds, it proves that Haupt received of the State, pay for iron which he knew belonged to tlie manufacturers. If the attachment holds, it must be remembered that it was laid after Haupt had received pay for it of the State and in consequence of information which he or his attorney communicated to the Iron Company or their attorney. As an illustration of the fraudulent and swindling nature of the management, look at this fact: To be entitled, under the Act of 1854, to receive a part of the State loan, they were to procure a subscription of §600,000, of which twenty per cent, was to be paid in. Mr. Haupt paid the assessment of twenty per cent, on his 5,000 shares by “ procuring §100,000 of bank bills in packages, to be immediately returned, without the intention that the hilts should become the property of the contractors^ and the contractors handed them to the treasurer of the company, who, as he testified, took them, credited §100,000 on the stock book^ and then handed the 30 money hack to the contractors^ by whom it was rotiirned where it belonged!!” (the cashier being present to keep watch of his money and to receive it hack after it had gone tliroiigh tlie ceremony !) And this was sworn to as a bona fide payment of assessments. By sucli disreputable thimble-rigging was the State swindled out of the first instalment of the scrip.* Mr. Haupt enforces his piteous appeal for sympathy by charging that Mr. Whitwell, by his withholding of what he claims is due Stopped the Work. In reply to this, in addition to the proof we have given elsewliere that Haupt has received for the entire work some $300,000 more than it should have cos£, at fair prices, we have to say, that all the facts go to show that Mr. Haupt had received from Mr, Whitwell several thousand dollars more than he was entitled to even on his and Mr, Lincoln’s basis. Taking the figures of Mr. Harley, (Mr. Haupt’s engineer,) allowing all that he claimed, making no deductions for slopes, trestle-work or any thing else, the very highest amount he can show as belonging to him, over and above what Mr. Whitwell allowed him, is $61,000. Now, Mr. Whitwell paid him $45'000 for iron which was not delivered, and over $20,000 for bridges estimated and paid for as finished which were not finished. Here are over $65,000 which Mr. Haupt has re- ceived for materials which he had not furnished ; being four thousand dollars more than the highest amount he can claim for work done and materials furnished, and yet lie talks about being compelled to suspend’the work by the unjust withholding of money which justly belonged to him ! Stopped the vjork I’’ Why, Mr. Haupt admitted before the Committee, that he owed the Rensselaer Iron Company over $70,000, (every dollar of which he had received from the State,) and how much more, we shall not know till the suit pending under their attachment is tried ; how much he owes the sub-ccntractors, nobody knows. Upon the usual rule of withholding from sub- contractors twenty-five per cent, as security for the completion of the work, he cannot owe them less than $50,000 or $60,000 ; so that liis delits for the road must amount to a good deal nioi’c than his highest claim of Mr. Whitwell. Indeed, the Coin- * A]»j)emli.\, [Ih] 31 mittee, by giving him fl50,000 to pay his debts, admit that he cannot get along without that sum. And yet he talks about Mr. Whitwell’s stopping the work 1 The Troy and Greenfield Railroad Company a Myth! Hon. Moses Kimball, in his statements at the hearing, pro- nounced the corporation a myth.” If any proof of the utterly mythical character of the corporation be necessary, it will be found in Mr. Kimball’s Report. Read the contract made with Mr. Haupt, Feb. 18, 1858. By this con- tract the whole of the property of the corporation is made over to him — State scrip, subscriptions, every thing ; the only consideration it receives in return is, Mr. Haupt’s promise to pay to the corpo- ration ‘‘ annually^ the sum of not less than five hundred dollars^ to defray the necessary expenses of organization and of printing.” So helpless and hopeless is the condition of the corporation, that it con- fesses itself the stipendiary of its contractor, and “ borrows leave to be ” by transferring to an irresponsible “ stranger ” (as he declares himself) the absolute control of its franchise and of two millions of dollars of State scrip, if he will only promise them five hundred dollars annually to pay their printers’ bills ! And for his performance of the contract they take not the slightest security. The uniform practice of well-conducted railroad companies is, to pay to contractors only seventy-five per cent, of the contract price, reserving twenty-five per cent, as security till the work is finished. There is no precaution of this kind here— nothing to prevent his abandoning the work at any moment when he finds it his interest to leave it. To illustrate still further how completely Haupt owns the cor- poration, bear in mind that Haupt holds 5,987 shares of the stock, and all others 1,679 .shares ; so that Haupt, as (nominal) stock- holder, holds nearly four times as many shares as all others, and he chooses directors, president, treasurer and all. The holders of these 1,679 shares are the only bona fide stock- holders, for they are the only ones who have paid a dollar of assessments. Mr. Haupt has never paid a dollar in easily or even in any thing equivalent to cash. He pretended to pay in work ; (see Mr. Kimball’s Report, pages 16, Ac.,) but in consideration of a subscription of 1600,000 to the stock, three hundred thousand dollars was added to his contract ! 32 If any should be deceived into the notion tliat the State has any security or any control by having Four State Directors, as proposed by the bill, a moments reflection will show how shallow a sham that proposition is. If the State chose every one of the directors, she would have no more control over any of tlie affairs of the corporation than she has over the counsels of the king of Dahomey. No board of directors can go behind, or change any of the provisions of the contract of February, 1858, without the consent of Herman Haupt. Indeed, that contract is irrevoca- ble and perpetual; and there is no power on earth that can take the control of the corporation out of his hands, except the Common- wealth as 7 nortgagee^ foreclosing for breach of conditions. The directors, whoever they are, whether chosen by the State or by Haupt, have nothing to do, and can do nothing, but register the edicts of Herman Haupt. As further proof of the entire abandonment of the enterprise into Haiipt’s hands, it is noticeable that not a single person from the line of the road appeared before the Committee. (Mr. Abercrom- bie was summoned as State director, at our request.) One of the original friends of the tunnel, residing in this city, happened to be present — a gentleman of singularly upright and earnest char- acter, warmed with the beautiful enthusiasm “ Of one whose nature, vision-bowed, Clasps a god in every cloud, — ” and charmed the audience with rose-colored sketches of the teem- ing wealth of the West, pouring into Boston through an auger- hole fourteen feet wide by eighteen feet high, under the Hoosac Mountain ! “ Of such stud' dreams arc made I” Not another person appeared in behalf of the enterprise. In- deed, tliere was no occasion for any of them. Mr. Haupt’s aim evidently was to pi’event investigation, and in that he succeeded j‘emarkal)Iy well. Fvery attempt we made at thorough investiga- tion was resisted, and, generally, successfully; and what little facilities were allowed us were only extorted by hard work, and 33 granted only after long delay, and because refusal would clearly damage Mr. Haupt’s case. Let us look at Mr. Haupt’s comparison with the Western Railroad. Mr. Haupt, in his opening statement, introduces a deceptive statement relating to State aid to the Western Railroad. He does not dare to put upon paper a comparison between the loans to the two roads and the relative security. We will make the com- parison. The Western Railroad was chartered in 1833. In 1836, the State subscribed for f 1,000,000 of the stock, and the condition was, that assessments should be paid by State and by private subscribers, In 1837, the stockholders had paid in 1262,000, and the State, 1100,000. In 1838, the stockholders had paid in 1102,530 ; the State, 1200,000. In the same year, the State loaned its credit for $2,100,000, to be paid in instal- ments in proportion to payments by stockholders. In February, 1839, stockholders had paid in $580,555 ; the State, $300,000 on subscription and $524,444 as instalments of the loan. In October of that year, the road was opened to Springfield, and from that time the earnings were applied to reduce the interest until 1842, when the nett income was more than sufficient to pay the interest on the scrip. The figures of Mr. Haupt’s table, on page 28 of his statement, are purely imaginary. As stated above, the stockholders had paid in, in cash, $580,555 when the State had advanced $824,444, — that is, $300,000 on assessments and $524,444 of the loan, — and this was the worst condition the State was ever in, as regarded that road ; for, after that, the road was earning money enough to show that the enterprise was beyond all hazard of loss to the State ; and Mr. Haupt dares to say, that when stockholders had “paid or secured” $600,000, “the State had paid $3,700,000”! The State never paid a dollar except in the proportion as pre- viously stated. Issue of scrip was made in all cases conditioned upon cash subscriptions actually paid into the treasury of the corporation by the stockholders. Now compare these facts with those in the tunnel case. Only $66,000 have ever been paid in, in cash, by subscribers, and $125,000 by towns, making $191,000 in all ; whereas the State 5 34 has advanced $725,388, and is bound, by tlic terms of the Loan Act, to advance the whole of the $2,000,000 witliout another dollar from private subscriptions. Besides, the State had what was equivalent to valuable security, in the character of the directors of the Western Railroad. Here they are — many among the lamented dead ; all the survivors among our most honored citizens: Thomas B. Wales, John Henshaw, Edmund Dwight, Francis Jackson, Robert Rantoul, Jr., Josiah Quincy, Jr., George Bliss, William Jackson, Charles Hudson, and Amasa Walker. The following are the names of the directors of the Troy and Greenfield Railroad Company : D. N. Carpenter, Alvah Crocker, James Cheever, Lewis Rice, E. G. Lamson, Peter B. Brigham, Harvey Arnold, H. L. Sabin, and Herman Haupt 1 ! Comparative Distance. A great deal of noise has been heretofore made about the saving of distance for the great traffic of the West to Boston over the Troy and Greenfield route. Mr. Haupt has claimed that the saving is twe^ity-three miles. By the following table it turns out to be but five miles. Boston to Schenectady hy imy of Albany. Miles Boston to Worcester, ,. . . 441 Worcester to State Line en Wes- tern Bailroad proper, . . 117^ J^lbany and W. Stockhridge R. R., 38 200 Albany to Schenectady, ^ .17 217 ! Boston to Schenectady by way of Troy. \ Miles. Boston to Fitchburg, . . .51 Fitchburg to Grant’s Corner, . 48 Grant’s Corner to Greenfield, . 8 Greenfield to Williamstown, . . 43 Southern Vermont road, . . 6 Vermont Line to Troy, . . .35 191 Troy to Schenectady, . . .21 212 Chance of Location. A's an illustration of the fact, that the change of location was made for the benefit of Mr. Hau])t at the sacrifice of the best interests of the enterprise, especially if it be regarded as part of a great lino for through trafiic, compare the characteristics of the line as originally located with those of the jirosont location. Bear in mind that, not only has Haupt adopted a location with 35 much worse curves, but he has violated the law, which authorizes the location to be changed solely on the condition that it shortens the Hne,’’^ whereas his change of location adds a mile to the length of the line. COMPARATIVE TABLE Of Allignments on the Troy and Greenfield Railroad, between Hoosac Mountain and Greenfield, by Contractor’s location, 30 miles ; and between same points, by Engineer’s location, 29 miles. DESCRIPTION OF LINES. Present location of Troy and Oreenfleld R. R. by Con- tractors.* Original location of Troy and Greenfield R. R., by En- gineer.t Kind of Curve. Radius in Feet. Length in Miles. No. of Curves. Amount of Curvature. Length in Miles. 1 No. of Curves. Amount of Curvature. Under 1°, . 5,730 - - - .78 4 25° 2°, . . . . 2,865 - - - 4.79 21 309° 3®, . . . . l,9i0 .63 6 o CO CO 3.80 21 424° Of 3°, . . 1,910 1.41 16 222° 2.71 13 429° Between 3° and 4°, . - - - - - - - Of 4°, 1,432 3.36 34 709° 3.59 13 760° Between 4° and 5 °, . - - - - .56 2 133° Of 5°, .... 1,146 .75 8 200° .21 1 56° 5i°, .... 1,042 - - - - - - 6°, . . . . 955 7.32 69 2,318° .19 1 60° 7°, . . . . 818 .39 3 144° - - - 8°, . . . . 716 .81 6 344° - - - Straight, .... - 15.44 - - 12.50 - - - 30.11 142 |4,005° 1 29.13 76 2,196° * Average, 133° per mile. Shortest Kadius, 716 feet, t Average, 75° per mile. Shortest Radius, 955 feet. The Curvature of the Vermont and Massachusetts Railroad averages 52® per mile. Shortest Radius 921 feet. 36 Who is Herman Haupt? By a lucky turn of tlie wheel of fortune, he is supposed to have made some money, and came to Massacliusetts to play Railroad King. At first, undoubtedly, he dreamed of fame as well as fortune from this great enterprise. Squandering, in wild speculations and visionary experiments, the money he made out of the Pennsylvania Central Railroad, — a road which has had to be built over almost entirely new since he left it, — he soon found that the tunnel was not the El Dorado his dreams had pictured. Driven to extremities, all his ‘‘ great expectations ” having failed, nothing was left but the State treasury. Leaguing himself with the most unscrupulous political gamblers and profligate adventu- rers in the State, he has corrupted the politics and influenced the legislation of the State to an extent which would be impossible to one less unscrupulous and indefatigable. His versatility is wonderful. At one time, you admire the sol- emn upturning of eye with which he utters the following : Men who are devoted to the interests of humanity and tlie cause of true religion ; whose fortunes are considered, not theoretically but practically as held in trust to be employed as the Great Giver, through the suggestions of an enlightened conscience, may direct ; whose donations have been as munificent as they were unostenta- tious and unknown ; men who have pledged all tlieir share of tlie profit that may be realized on this very Hoosac Tunnel enterprise, to objects of benevolence .” — Haupfs speech at American House ^ June 9, 1857. At another time, one could hear the chuckle with which he regarded the proficiency of his pupils, as he drilled them in the tricks of his trade. ‘‘The merry old gentleman, placing a snuff-box in one pocket of his trowsers, a note-case in the other, and a watch in his waistcoat pocket, with a guard-chain round his neck, and sticking a mock diamond pin in Ids shirt, buttoned his coat tight round him, and j)uttiiig his spectacle-case and handkerchief in the pockets, trotted uf) and down tlie room witli a stick, in imitation of the manner in wliicli old gentlemen walk about the streets every hour in the day. At last the Dodger trod upon his toes, or ran upon his boot, accidentally, while Oharlcy Dates stumbled up against him behind ; and in that one moment they took from him with the most extra- or(lina,ry raj)idity, snuff-box, note-case, watch-guard, chain, shirt- jdii, pocket handkerchief, — even the spectacle-case.” 37 ‘‘ Make ’em y’r models, my dear, make ’em y’r models ” said the Jew to honest unsophisticated Oliver; and Oliver tried his hand. You’re a clever boy, my dear,” said the playful old gentle- man, patting Oliver on the head approvingly ; “ 1 never saw a sharper lad. Here^s a shilling for you. If you go on in this way, you’ll be the greatest man of the time.” Alas, our Fagin has found, not only Charley Bateses and Dodgers, but simple Olivers who don’t know for whose benefit they are pulling chestnuts out of the fire. I am at a loss to account for the influence which Mr. Haupt exerts over those with whom he comes in contact. I had never known him ; but was prepared, from impressions of him derived from personal friends in the tunnel region, to think very favorably of him. I expected to meet a man of capacity and breadth of character, I found an adroit and unscrupulous special pleader ; I expected to meet an enthusiast, I found a calculating, selfish speculator; I looked for a Cheeryble, I found a Uriah Heep. Plausible and insinuating towards those whom he desires to use, servile and sycophantic towards those who have the power to forward or thwart his schemes, arrogant and insolent towards those whom he can neither humbug nor buy, Shylock and Pecksniff by turns, he has succeeded in exerting an influence to which neither his character or ability entitles him. As an individual he deserves no notice ; as the marplot of this great enterprise — an enterprise whose success, from the day I first voted for its charter in 1848 to this hour, I have earnestly desired and done what I could to promote — he deserves to be exposed. I am forced by the developments of this winter to believe, as I do most profoundly, that Herman Haupt, under professions of philan- thropy and devotion to the public good, is perverting this enter- prise to his own selfish purposes ; that, instead of aiding it, he has stood, and still stands, in the way of its completion, and that the road to success will not be entered upon until his false character is exposed and the enterprise rescued from his control. I can have no personal controversy with such a person. I can feel only pity for a man who so perverts powers which might have been directed to a useful purpose, or contempt, when he deceives himself with the idea that sensible men do not see through a disguise which is composed of disgusting cant, superficial dogma* 38 tism, and unmannerly insolence. He is delightfully indifferent to facts, never discusses principles, and, with singular intellectual or moral obliquity, considers an attack upon an opponent’s motives as a reply to his arguments, — “ mistaking the venom of tlie shaft for the vigor of the bow.” The Tunnel. Wo have hardly referred to this. Haupt’s game has been to get all the money he could out of the State for the road and leave the tunnel on our hands. Wo know too little about, it to form any intelligent opinion as to its cost. Somebody has got to spend two or three millions to complete it with a double track, as it must have, for any considerable traffic. The annexed profile shows what has been done. What shall be Done? There is one course, and only one course, which sensible business men would pursue in relation to this matter, — send no new dollars, after the old ones till we have made thorough investigation. If the State fairly and honestly owes any body a dollar, PAY IT. If the work is to be finished, the State must do it ; for not a single dollar will ever come from any other source. Tliis every-body knows. The corporation cannot budge another inch. They cannot possibly fulfil their contract with the State* The main questions to be answered are these, — “ Shall the State wind up the concern and pocket the loss ? or, shall she furnish the money to complete the work ? ” If, as the result of the inves- tigation, it should be decided to go on, the only sensible and economical way is, to take the enterprise into her own hands, and ‘‘ build her own road with her own money.” There are very grave objections to this course, which we have no time to present. As an original proposition, it could not be entertained for a moment. Ihit, having })ut our foot in it,” we must now look the con- seiiuences sejuarely in the face. If the road is to be finished, the State must do it, and do it through her own agents ; for every consideration of economy and policy forbids our going on with tli(5 j)r(iscnt slip-shod and I’cckless system under which one third of oui- inoiKiy sticks to the fingers of speculators and swindlers while we ai’c getting a tunnel of only half the proper size and a road of no value as a greiit conimercial highway. Cross Sections of Tunnels. Julies lo7ig. 15 Cubic' yard& ptr. Imtcil Jt. Soo sac Tunnel as projected and estimated Soosac Tunnel as thus ^far ccmplUed. upon when loan was originally granted. 4Z73 feet in length 11\ Cubic yards per, lineal ft. Mngwood Tumid, TaltuncrekOhwR.R. l^l-W Ridge Tunnel in V^. emstmekd/or Singh Track and cemphted in 1857. ft lies long '!9h Cubic It ardfi: per lineal ft. ggSJO ^ Kant Cents Tunnel Under the .dips. \ 4527 fiet in length - ^6 of a JUU. j IS Cubic yards per lineal ft j fe J Tunnel at St Martin's on Bvurbeunats R.R France. « Z--ad:-g S-^' . lar'i'ia tin-i h Ld The £lack lines at cither end indicate the progrtsi PK«FILE OF THE HO 0 SAP MOITNTMN on TUMEL ELNE OF THE Cress Seitions vf Tunnel. TRtT ^ ^RiiiNJFIJElLDj RAUL R§Ai. \ Marcli 1862 . ^5 Cu.-, if.aX ft. \ ('opted from Frofile made Iry ts our hearts, lUit leaves a sting behind! ” ( Curtain falls.) ^ •IT'. ' * •: r" • V '• - ^ • .^f -. . ' _;-f' i ?»W.*;^' A:';‘- ■ . ' % •-, -VW r V » ; • iV'- •pr , UNIVERSITY OF ILLINOIS-URBANA ,-... . ... ^ - -m - 1^: W T soy 2 066254621 .^.i^,.i ■■■ ■" - <• ■--? y - i-~ '- .'.V .--^^.t:.— f-- -7.-' 'I? ■' ^ ' •* p. Ft , !^-r "lE^V- ? 'Im^-'^v.; >■> ■f I J \ *’^ " v:- ^