; ; #n~c-7f ■ • Ill'll Ml ARGUMENT TL>. i v or|i II I 1: /. I !■ CHARLES F. CHOATE, ESQ., IN BEHALF OF THE NORTHERN (N.H.) RAILROAD AGAINST THE CONSOLIDATION OF THE Roston & Lowell and Fitchburg Railroads, BEFORE THE RAILWAY COMMITTEE OF THE MASSACHUSETTS LEGISLATURE, FEBRUARY 26, 1873. BOSTON : GETCHELL BROTHERS, PRINTERS, 53 Washington Street. 1873. ARGUMENT OF CHARLES F. CHOATE, ESQ., IN BEHALF OF THE NORTHERN (N.H.) RAILROAD, AGAINST THE CONSOLIDATION OP THE Boston & Lowell and Fitchburg Railroads, BEFORE THE RAILWAY COMMITTEE OF THE MASSACHUSETTS LEGISLATURE, FEBRUARY 26, 1873. REPORTED BY J. M. W. YERRINTON. BOSTON : GETCHELL BROTHERS, PRINTERS, 53 Washington Street. 1873. //8/4S. a ARGUMENT. Mr. Chairman and Gentlemen. I appear before you in behalf of the Northern Railroad of New Hampshire, in opposition to so much of this petition as relates to the consolidation of the Boston & Lowell Rail- road and Fitchburg Railroad. With the general question of consolidation I have nothing to do. As to the disposi- tion to be made of the Tunnel I have no suggestion to make. These are domestic questions, to interfere in which would be impertinence on my part. But I do not know that any apology or excuse is necessary in coming before a committee of the Massachusetts Legislature to represent a corporation without the limits of the State. If any one will glance at a railroad map of Massachusetts, it will be evident enough that the railroads terminating in Boston have been built en- tirely independent of State lines. Look in every direction, and you will see that Boston is the centre of a great railroad system, the railroad capital of New England, extending its lines in every direction where business is to be found or is to be created. Very soon after the Boston & Lowell Railroad was opened, it was extended up into New Hampshire; first by the Nashua & Lowell Railroad, then by the Concord, then by the Northern, and then by the Vermont Central and the Og- densburg to the West, The Northern Railroad was mainly built and is how owned by Massachusetts capital. Of its directors, four are citizens of Massachusetts. At least three 4 quarters of its capital is held within this State, and we can look upon it in no other way than as one of the Massachu- setts system of railroads which have been built for local business, serving local business to a very large extent, but at the same time tending to promote the growth of Boston as much a^any railroad in the Commonwealth. I think, Mr. Chairman, that there is no part of New Eng- land the business interests of which are so intimately, I might say so entirely, connected with the city of Boston as those of New Hampshire, and perhaps more particularly those of the valley of the Merrimack river, extending from Concord (for these lines lie in that valley) to Nashua. New Hampshire is more intimately connected with the business of Massachusetts than many parts of the State of Massachu- setts itself. The southern part of the State finds its busi- ness connections in Providence, the western part in New York, to a large extent. The business of Vermont and New Hampshire is peculiarly with Massachusetts and Bos- ton ; and you cannot legislate in a way to affect the business interests of New Hampshire in this respect without at the same time affecting the business interests of Massachusetts and of Boston. I cannot express it to the committee any more clearly than was done by the counsel for the Lowell road when he came before a committee of the Legislature in 1869 and asked for terminal facilities for this great Northern line. In 1869 the Lowell Railroad came before the gentle- men who then occupied your places as members of the com- mittee on railroads of the Legislature. It came before them, asking for terminal facilities, not for the Lowell Railroad, but for the great Northern line of railroads (including those shown on this map) , for which it then claimed to be the natural terminus. I quote from the argument of the coun- sel, page 10 : 5 "In other words, as I stated in the opening argument, the Boston & Lowell Railroad does not stand here asking these terminal facilities for the benefit or accommodation of any twenty-six or any forty miles of railroad. But it stands here as the representative of nine hundred miles of railroad, of which the Boston & Lowell Railroad is the terminus ; and cars from the Boston & Lowell depot run to every part of this nine hundred miles. This line cost fifty millions, and a very large amount came directly from citizens of Boston. I stand here representing this Northern line of roads, and I ask you in your deliberations to consider, in making any arrangement with the Commonwealth of Massachusetts, how far the interest of this line of roads is to be affected by the legislation which you may recommend.” I also quote from this same argument, to show the connec- tion of the business of New Hampshire and Vermont, which to a certain extent is done over this line of roads, with Massa- chusetts and Boston. On page 8 of this argument I find the following statement : — "Now let me ask your attention to another matter. I speak of the business interests of Boston. She lies within the Commonwealth of Massachusetts ; but so far as business is concerned, so far as the metropolitan character of Boston is concerned, Boston is to-day no more the capital of Massa- chusetts than of New Hampshire. I will go further, and say that, taking the business interests of New Hampshire as a whole, they are more intimately connected to-day with Boston, than the business interests of Massachusetts, taken as a whole. Show me a man in the State of New Hampshire who does busi- ness with any city on the continent who does not do business with Boston, and v it will be a rare exception. The same thing is true to a marked extent of Vermont and of Maine. All these three States are more intimately connected with 6 the business interests of Boston — aye, sir, and the prosperity of Boston is more intimately connected with their prosperity — than with the business interests of the western part of this Commonwealth itself. " And therefore, if there were no other reason for my friend (who is the manager of a line of railroad from here to Og- densburg) and myself coming here, it would be found in the fact that the business interests of our friends and fellow- citizens throughout the State of New Hampshire are as truly identified with the prosperity of the city of Boston as are the business interests of any people forty miles distant from the city and who do business here.” There is another reason, and I think a very good one, why the Northern Railroad may come here and fairly represent the Northern line ; and that is, because it was the founder and the originator of the Northern line. It amuses any one who is familiar with the early history of this line to hear the laudations of counsel upon the energy, pluck and deter- mination of the Lowell Railroad, which, they say, opened this Northern line for Boston. It did no such thing. Every obstacle was thrown in its way by the Boston & Lowell Rail- road. For years it refused to co-operate with it. I have here the early contracts. On the 16th day of March, 1854, the Northern Railroad of New Hampshire entered into a contract with the Vermont Central Railroad and the Ogdens- burg Railroad, — which I propose to submit to the committee if they desire to see it, — for the formation of this Northern line. This contract provided for running through lines of passenger and freight cars between Boston and Ogdensburg. It was secured at great expense. The Northern Railroad paid a very large sum in order to consummate it. The pro- visions of the contract were, that cars should run in each direction between Boston and Ogdensburg, for the estab- 7 lishment of a through passenger and freight line. Having secured this contract, the Northern Railroad came to what we call the lower roads, the Concord, the Nashua &, Lowell, the Boston & Low^ell, the Manchester & Lawrence, and the Boston & Maine, and proposed to them to unite in the cre- ation and establishment of this through line. The Northern Railroad proposed that they should bear with it some of the burdens of the contract (that they should contribute $150,- 000 towards the sum which the Northern Railroad was to pay at that time towards the equipment of the Ogdensburg road), and should be entitled to share in its benefits. At that time some of (hem refused. The business, however, was done under this contract until 1857. In 1857 the Northern Railroad" succeeded in completing the arrange- ment with the Manchester & Lawrence, the Boston & Maine, the Concord, the Nashua & Lowell Railroads, to come into the arrangement and form part of the through line. But in this contract the Boston & Lowell Ro&d refused to take any part. It did, however, allow the business to be done on substantially the same terms over its line. From that time until 1865 the business continued to be done in that' way. The Northern line business was considered by all the roads as the Northern Railroad business. Settlements were made with the Northern Railroad. It was, to a very considerable extent, the representative of the line, and fur- nished money to some of the roads ; time and again the up- per roads were materially aided by the money advanced and loaned them by the Northern Railroad. In 1865 the line had become as substantial a success as a line can be where the parties over the whole line will not come into the arrangement; that is, I hold it to be absolutely essential for an efficient through line that all the parties shall be interested in the line. While the Lowell Railroad held off aud refused to become a party to these contracts, and refused to form a portion of a through line, there was some difficulty. It was difficult, without having an absolute terminus in the city of Boston upon a railroad which was identified in interest with the other portions of the line, to establish a line thoroughly efficient. In 1865 the first con- tract was made for a through line between these roads, in which the Boston & Lowell joined. Before that time the business had all been done in the name of the Northern Railroad, and as its business. This contract of 1865 was continued for five years by yearly extension, and was sub- stantially in the form of the contract of 1870, under which the line is now operated. In 1870 the present "line contract,” as it is called, by which the Vermont Central line was formed, was made be- tween all these corporations, to run for a period of twenty years, entitled "The contract for the business of the Ver- mont Central in ^connection with the Northern, Concord, Nashua & Lowell, and Boston & Lowell Railroads.” To show for what purpose it was made, I will read from the preamble : " That whereas the respective parties own, operate or control the several parts of a continuous line of railroads extending between Boston in the State of Massachusetts, and the Province line in the State of Vermont, with sundry roads and branches connecting therewith : and whereas it is for the best interests of all concerned that so much of the transportation business over such road as is common be- tween said first party [the Vermont Central Railroad] and the said other parties, severally, shall be managed in such manner as to secure efficiency, economy and the public con- venience : " Now therefore, for the accomplishment of these purposes, 9 and for the purpose of maintaining between themselves re- lations which shall prevent conflicts of interest between any of these respective roads and branches, it has been and is hereby mutually agreed between the parties as follows.” Then follow the provisions under which this line is to be established. In the first place, it is to be placed under the entire charge of two managers, one of whom shall be chair- man ; and the manager of the Lowell Railroad has always been and is now this chairman. The provisions of the con- tract are intended to apply to through business ; and for the purposes of through business to establish one consolidated line, giving the entire charge of that through business to a board of directors consisting of six representatives of the various road (only one of whom can be appointed by the Concord Road) , of whom two shall be elected managers and one the chairman. It contains all the provisions in regard to supplying the cars by the different roads. It contains the provision, which I read to the committee the other day, that every corporation that enters into this contract will, during its term, use every means to promote the efficiency of the line ; that they will make no contract to divert from the line the business for which it was established ; " that they will respectively, so far as they properly may, in all respects manage and direct said business on their several roads so as to secure to the others the traffic as hereby intended.” The object of this contract, Mr. Chairman, is obvious enough. It was to form for the through business a consol- idated line, leaving all the local roads to manage their local business as they pleased. For instance, while this contract is made for the transaction of the through business, that is, the business from Ogdensburg and the West to Boston and intermediate points, each railroad company made contracts with the individual members of the line for the transaction 10 of its local business. And in speaking of the local busi- ness, I don’t know that the committee are entirely familiar with the way in which railroads manage business of this kind. For instance, all business which originates on the Northern Railroad, between different points on the Northern Railroad and Boston, is considered the local business of the Northern Railroad. A passenger from Boston to any point on the Northern Railroad, and vice versa , is a Northern Rail- road passenger, and is carried over the other roads in cars supplied by the Northern Railroad at rates fixed and agreed upon by the parties. Such business is entirely independent of this line contract. There are two sets of contracts be- tween these parties : one in which they all join for the pur- pose of making an efficient line for the transaction of through business, and another consisting of separate contracts be- tween individual members of the line by which they pro- vide for the transaction of their own local business. This line contract, to which the Concord road is a party, carried the line as far as the Ogdensburg Railroad. The Ogdens- burg Railroad was not a party to this contract ; Ibut simul- taneously a lease of the Ogdensburg Road was taken by the Vermont Central trustees for the line, of wffiich I have a copy, which I will hand to the committee ; that is, the lease was first made and the contract formed between the trustees and managers of the Vermont Central and the Vermont & Canada Railroad and the Ogdensburg Railroad Company, by which it was agreed they should operate the Ogdensburg Road. A provision was then made that the other roads in the line, that is, the Northern, the Concord, the Nashua & Lowell, and the Boston & Lowell, should become parties so far as to become entitled to all the benefits and subject to all the burdens of this lease. It is taken for the joint benefit of the line, and not for the benefit of the Vermont Central 11 Railroad. This lease has been approved by the chancellor of the State of Vermont, and is now in effective operation. The only difficulty that has arisen with the Concord Road occurred at this time when it was asked to become a party to this guarantee of the lease. It declined to do it; and inas- much as it did so, the other members stepped in, and a sup- plementary contract was made, reciting that whereas the Concord Road had refused to join in this lease, the other parties would take it for the whole line, with a provision that the Concord Road might come fl in at any subsequent time. I am unable to see that the efficiency of the line is in the slightest degree affected by this refusal of the Concord Rail- road, or by the fact that the Concord Railroad does not come in and take a portion of the Lake Champlain & Ogdensburg lease. The line is just as efficient without the Concord Road signing that instrument as it would be with it. The next year after this contract was made, a contract was also made by the line, that is, by all the railroads forming this line, with the exception of the Concord Railroad, — and let me say that in the preamble to this last contract it is provided that the Concord Railroad Corporation of New Hampshire shall be a party, provided it execute this agree- ment, — for the lease of a line of boats running from Ogdens- burg to the West. It was substantially done in this way: the capital of the boat company was six hundred thousand dollars, and it had a debt of four hundred thousand dollars. The Ogdensburg Road advanced its bonds to the amount of six hundred thousand dollars to purchase this stock, which was placed in the hands of Gen. Stark and Gov. Smith as trustees for the management of the boat line. A provision was made by all the parties for payment to the Ogdensburg Road to indemnify them for and to pay these bonds. A pro- 12 portion of the proceeds of the business, not exceeding one hundred and fifty thousand dollars per year, is to be withheld by the Lowell Road from the proceeds of business as it comes from the West, to be applied to the payment of these bonds, and provide a sinking fund for the payment of the bonds of the steamboat company. This line of steamers consists of twenty-one vessels, of an aggregate valuation, as stated in the schedule of sale, of one million dollars, suitable for the navigation of the St. Lawrence. They can pass through the Welland Canal, and reach all the points of the West accessible by water. The company has storehouses at Os- wego, Cleveland, Toledo, Detroit and Chicago. And this constitutes the Northern line. Now, what is this Northern, this Vermont Central line? I again read to you from the argument which was presented to the committee of the Legislature at the time when this Northern line through the Boston & Lowell Road asked for terminal facilities : " Let me ask your attention to another thing : when this line of four hundred and six miles reaches Ogdensburg, what does it there find ? It there finds a line of steam pro- pellers which run through Lake Ontario and by the Welland Canal into Lake Erie, then by the various lakes to the harbor of Chicago, thus furnishing a direct connection, a main line, from Boston to Chicago, with water communication, excepting four hundred and six miles of rail. ” And, Mr. Chairman, let me mention another thing well known to a gentleman of this committee, who in my judg- ment is one of the very best railroad men in this Common- wealth ; and that is, that by an arrangement between this line of railroad to Ogdensburg and the boats, freight is taken from Boston to Chicago, or vice versa , with an equal divis- ion between the boats and the railroad line, at whatever 13 prices the freight may be taken. If freight is taken at ten dollars a ton from Boston to Chicago, the line of railroad be- tween Boston and Ogdensburg gets five dollars of the ten, and the boats get the other five. So that by the arrange- ment here the distance to Chicago is practically twice four hundred and six miles, or eight hundred and twelve miles, by this route, if you measure distance by the price at which freight is carried. Let me repeat, — because I regard it as a very important matter bearing upon this question, which, all things considered, is the most practicable and cheapest route to-day from Boston to Chicago and the great West, — I claim, and I think I can show to any railroad man, that this route by the way of Ogdensburg to the West is the cheapest route, is peculiarly the Boston route, and is the best freight route to-day existing. I said that the railroad received just half the price paid for the transportation of freight from Boston to Chicago, and the boats received the other half ; therefore, practically, it brings Chicago, in everything except the mat- ter of time, within eight hundred and twelve miles of Bos- ton. I want to have you tell me of any other route by which, practically, to-day Chicago is brought within eight hundred and twelve miles of Boston.” Then follows a list of the equipments of this Northern line. It gives for all the various roilroads of the line, which, however, includes two small roads not in the direct line, two hundred and four locomotives, one hundred and fifty-nine passenger cars, seven hundred and sixty baggage cars, and forty-two hundred and three freight cars. This line is as efficient to-day as in 1869. It is more efficient. In 1869 the parties were merely acting under a contract from year to year. Now they are acting under a contract which has eighteen or twenty years to run. Now the line has the lease of the Ogdensburg Road. Now the line 14 owns the boats. To-day the manager of that line, at times when the navigation on the lakes is open, seven months in the year, without consulting anybody, can name the price of freight between Boston and Chicago ; and whether it is car- ried over the line or not, the price named by the manager of this line fixes the rate on all other lines. There is no other way in which you can control Western rates. You talk about the Tunnel line. Until you get the Tunnel line continued through to Oswego, you are not in a position to occupy the same place which this line now has in the rail- road policy of this Commonwealth and of New England. Your roads are at the mercy of outside corporations. The Boston & Albany Road can only fix its rates to Chicago by consulta- tion with railroad men in New York. When you get the Tunnel line completed, the operators of the Tunnel line, until they get a port on the lakes, until that line is continued through to Oswego or Ogdensburg, or some other port, stand in the same position. They are at the mercy of the parties who control the railroads of Central New York. They will be placed in the same position in which this line has been placed in winter, when its only means of communi- cating with the West were over the Grand Trunk Railroad. The Grand Trunk Railroad Company was told by Commo- dore Vanderbilt that if it connected with the O^densburff line at these low rates, he should not connect with it over the New York Central ; and the business over the New York Central was too important for it to give up. I say, therefore, that I agree with the representation made here by the counsel for the Boston & Lowell Road in 1869, that this, Northern line is just what Boston wants. It is a line which does effectually, during the time when navigation 15 is open, keep up that competition which the railroad com- missioners told you was the great thing to be sought. You want to get a line which cannot combine. Now, if experience shows anything, it is clear from the testimony of Mr. Mills that during sixteen years in which he has been connected with this line it has combined but^ once, and then only for a period of two weeks. During all the rest of the time it has been in competition with the other Western lines, and has substantially fixed the through rates between Boston and the West. I do not understand that the efficiency of this line is in any way affected by the financial position of the parties. The Vermont Central Road is in trouble; but it does not affect the running of cars, and business comes through in precisely the same way as before. There is no fear that the line is to be broken up because the parties are in financial difficulty. There is no fear that the line is to be broken up because the Concord Railroad does not sign these contracts. There is no fear that the line may be broken up because there may be local troubles between different parts of the line. For all the purposes of through transportation, the Vermont Central line stands to-day more firmly established than ever; and I think that it promises in the future to be, what it has been in the past, the controller of through rates between Boston and the West. But it is not merely as a Western line, Mr. Chairman, that this line is of importance to Boston. A mere glance at the map shows that the Northern line is a great tributary to the business of Boston and to the business of Vermont and New Hampshire. It runs through the whole length of those States. It is evident from the map, and has appeared here from the evidences of parties in interest, that it is to a large 16 extent in competition for this business with the Fitchburg Railroad . The Fitchburg Railroad, by means of the Cheshire & Rutland, can connect with almost every point in Vermont and New Hampshire. The railroads ramify in such way that there is hardly a point in Vermont or New Hampshire that cannot be reached over the Fitchburg Railroad. Since the opening of the Nashua & Acton Road, even the valley of the Merrimack river is accessible to the Fitchburg Road. At a time when you are proposing to consolidate the roads over which this business with Boston is done, other States are striving to extend roads into this very country. The Portland & Ogdensburg Railroad traverses the whole northern portion of Vermont and New Hampshire. The Portland & Rochester Railroad, with projected extensions, covers the whole of the southern portion of New Hampshire. Now, can Boston alford, at a time when other cities are competing for the business of Vermont and New Hampshire, to put any check upon this business, or to do anything which shall impair in the slightest degree the efficiency of the rail- road system which connects Boston with this territory? It seems to me that it would be very unwise. Now, Mr. Chairman, what is the effect of the proposed consolidation on these various classes of business? And first, I refer to the Western business, or business done with the West over the Vermont Central line. And I again wish to read to the committee from Article 14 of the contract under which this line is formed : "It is the intention of the parties to this agreement to secure to the connecting and continuous line of railroad above mentioned all the business requiring transportation between points thereon, or which may be conveniently reached thereby. And the parties hereto mutually agree 17 that they will not do to, nor so far as they can control the same with a just regard to the public convenience, suffer to be done, any act' or thing which shall in any way contravene the letter or spirit of this agreement; and that they will, respectively, so far as they properly may, in all respects manage and direct said business on their several roads so as to secure to the others the traffic as hereby recommended.” Now, are you ready to place the Tunnel — or the Fitchburg Railroad, which everybody says is the key to the Tunnel — in the hands of a corporation which has obliged itself for twenty years to come to do everything to promote the efficiency of another line westward, with which the Tun- nel, when it is completed, will be in direct competition? The only reply made to this is, that perhaps this contract is not legal and may be broken. I don’t care which horn of the dilemma you take. The integrity of the Northern line depends upon that contract. If the Lowell Railroad keeps the contract, you place the Tunnel in the hands of a rival line. If it breaks the contract, you break up the existing Northern and Western line, which, from all the testimony in this case, has been and is likely to be of immense advantage to the business of New England and Boston. The advantage of this Northern line is not confined to the city of Boston. It extends over the whole line of road. Every town and every city in the valley of the Merrimack river derives an equal advantage with Boston from this Northern line. It brings cheap flour and grain to Concord, Manchester, Lawrence, Nashua and Lowell. It enables the manufacturers of those cities, who are, to a very great de- gree, Boston and Massachusetts manufacturers, to compete successfully with the other parts of the country. By the outlet over the Nashua & Worcester Road, it brings Wor- cester and a great part of Massachusetts within the circle of 18 the competition which is kept up, and is equally advantage- ous to that part of the State. Now, in regard to the effect of consolidation on the local interests of New Hampshire and Vermont. I suppose there is no doubt that putting the Fitchburg and Lowell Railroads together creates a monopoly to which the whole business of Vermont and New Hampshire must be tributary. If you will look at the map, you will find that every railroad run- ning towards Boston, between the Boston & Maine on the east, and the Boston & Albany on the west, must enter the city of Boston to-day over one of these railroads, and every railroad corporation, and the whole territory traversed by every railroad in that whole circuit, is made tributary to this monopoly. Now, in some respects, I agree with Mr. Derby’s eulogies of monopolies. When you state it as a railroad aphorism, that one railroad corporation can do business cheaper than two, I agree with it, Mr. Chairman ; I have no doubt that it can. I have no doubt that between two points, if there is only one railroad, that that one railroad can do the business cheaper than two. But I think it is equally clear that it will not do it. Place the power in the hands of a railroad man- ager, and his business is to get all the money out of the traffic that it can bear. And substantially, the only way by which, to-day, you do control railroad rates is by competi- tion. I don’t know that there is any better way than to refer to an example of railroad monopoly and its results. And I think, without wishing to say one word against the managers of the Boston & Lowell Railroad, and admitting that their management has been able, efficient and success- ful for the stockholders of the road, the Boston, Lowell Nashua Railroad furnishes a fair example of such a mo- nopoly. It has been throughout, and is shown throughout in 19 the legislation of this State, and in attempted legislation in New Hampshire, an attempt at fiionopoly. If you look at Lowell, every railroad which has its terminus in Lowell has passed under the control of that corporation, including railroads which have no connection with it or with one another. So it is with the city of Nashua. The business of Nashua, being chiefly business between Boston and Nashua, has been enjoyed as a monopoly by the Boston & Lowell and Nashua Railroads. And now what is the result, Mr. Chairman? Anybody that has been at the State House within the last two years knows with what zeal and determination the people of Nashua have pushed to completion the Nashua & Acton Road to get a new avenue from Nashua. And I believe it is a fact that the only railroad corporation which has been formed in this Commonwealth under the general railroad law is a railroad company formed by the people of Lowell to get an independent connection with the outer world over the Boston & Maine Railroad. Now I respectfully submit that, however successful for stockholders the principle of monopoly may seem to be, it is not one that is satisfactory to the people. But it may be said, Mr. Chairman, that if you do not grant this act authorizing a consolidation of the Fitchburg and Lowell Roads, that they may combine by contract. In the first place I reply, that they have no legal power to make a contract to combine ; and in the second place, I will run the risk of saying that they never can make a contract to combine. They can do what they have attempted to do here, and say, "We will put the roads together for a new company ; we will put in the property at an appraised valu- ation.” But let them attempt to form a business contract by which the business is to be divided, and they cannot do 20 it. The competition between the Fitchburg and the Lowell Roads is not sufficiently vital to produce combination. When competition is carried to such an extent as to threaten divi- dends, I suppose that it will overcome any hostility between two corporations. But where the competition is merely inci- dental, i.e ., not interfering with the general business of the roads, it will never produce combination. The Fitchburg and the Lowell Roads have each an independent business. They each have enough to do, and competition between them is at points which do not vitally affect either of them. I do not know, Mr. Chairman, that I am required to say anything here for the State of New Hampshire. I suppose New Hampshire can survive all attacks which can be made upon her. It seems to me that in some respects these at- tacks are unjust. And in regard to the particular legislation spoken of here as asked for and refused, I think it proper that I should lay before the committee the precise facts, be- cause I do not think that they have been fairly stated to the committee : what has been asked for, what New Hampshire has done, and what she refused to do. Now, if you will re- fer to this charter of the Great Northern Railroad Company passed in this State (and let me remark that it is the most remarkable railroad charter found on the pages of the legis- lation of this State or any other) , there are certain points to which I wish to call your attention. The first is this : there are four corporations named, the Boston & Lowell, the Nashua & Lowell, the Concord, and the Northern Railroads. Now, any two of these may combine and form the corpora- tion. But it is evident enough that as every one of these corporations is partly a New Hampshire company, except the Boston & Lowell, that some legislation in New Hamp- shire was necessary in order to make this charter in any way effective ; that is, the Concord, the Nashua & Lowell, and 21 the Northern were all New Hampshire companies ; and to enable them to join in the formation of this Great Northern company, they must get authority from the State which created them, namety, from the State of New Hampshire. Therefore the Great Northern Railroad charter could never in any way become operative until New Hampshire had sanctioned it. This corporation has authority to issue capi- tal stock amounting to some sixty millions of dollars. In 1871 the Legislature of this State passed an act intended to limit the powers of those railroad companies which extend beyond the line of the State. The Boston & Maine, the Nashua & Lowell, the Vermont & Massachusetts, the Boston & Albany, the Providence & Worcester, the Worcester & Norwich, the Springfield, Hartford & New Haven, the Old Colony, are all the great corporations of the State, and are all corporations which extend beyond the State line. There is an act on the statute book which prohibits any of these corporations building a side track outside of this Common- wealth, without coming here and asking your leave; i.e., anything which requires legislative sanction in another State, requires them to come here and ask your consent. In the light of this statute it seems extraordinary that you should allow to remain on the statute book a charter which gives a railroad corporation the general roving right to buy railroads over the State of New Hampshire. It is not necessary that those purchased roads should be continuous or form a con- tinuous line. It can buy them pretty much anywhere that it wants them, and at the prices it chooses to pay for them. You prohibit companies in this State from making stock dividends. But this company can increase its stock to the full extent of the stock of the purchased roads, about which you know nothing. The only provision in the charter is, that there shall be a commissioner appointed by the Gov- 22 ernors and paid by the company, who shall assent to the issue of this stock. I don’t know that it can be regarded as. wonderful that when parties came up into New Hampshire with an act of incorporation which authorized them to buy up all the railroads in New Hampshire and put them into one corporation, that the Legislature should be a little shy of it. Take a parallel case, and see how it would strike you. The Manchester & Lawrence Railroad has twenty miles in New Hampshire, and the Boston & Maine has twenty-six miles in Massachusetts. It is about the same thing as if the State of New Hampshire had passed an act by which it authorized the Manchester & Lawrence Railroad and the Boston & Maine Railroad to form a corporation under the name of the Great Southern Railroad Company, with a capital of sixty millions, and with power to go over the State of Massachusetts and buy up all the railroads it pleased. Then there is another point where it touched a matter in which the people of New Hampshire were then particu- larly sensitive. This question of consolidating competing roads was not a new one in New Hampshire. It was a thing they had considered. They made up their minds that it was not wise to consolidate competing roads, — that where com- petition existed it was best to keep it up ; and they had passed a stringent act in New Hampshire, — where they had always refused to consolidate competing roads, — pro- viding that no rival or competing roads should be maintained by the same corporation, under heavy penalties*. This Great Northern Railroad bill gave authority to unite two compet- ing corporations in New Hampshire. It excited the public feeling because the corporations had attempted to unite against the laws. Is it to be wondered at that this should create some little excitement in New Hampshire at that time? I suppose there is no railroad question over which 23 the people of New Hampshire have been more sensitive than this : that the control of the railroads leading into the val- ley of the Merrimack should not pass into the hands of one corporation. There is no richer piece of railroad property in the United States than the Concord Railroad. I think its gross earnings are something like 70 per cent on its capital. From the peculiar formation of the country, the railroads pour into the valley of the Merrimack at Concord the whole business of the Northern and Western parts of the State. From Concord it runs down a perfectly level road to Nashua. The Concord Railroad at one time had control of the whole business of the valley of the Merrimack. However, in order to create competition, and after severe conflicts, the Manches- ter & Lawrence Railroad was built from Manchester to Law- - rence, there connecting with the Boston & Maine. Then a railroad was built from Concord to Portsmouth, furnishing a new outlet to the seashore, over which the coal for the Mer- rimack valley is taken. The Portsmouth & Concord Road is owned by the Concord Road, and is a part of its line. An effort had been recently made by the Concord Road to secure the control of the Manchester & Lawrence Road. I think there have been a dozen attempts on the part of the two corporations to secure from the Legislature of New Hampshire authority to unite. It was always fiercely contested, and al- ways refused by decisive votes. In 1860, after they had been foiled in this way a good many times, they made a contract to unite ; and the Manchester & Lawrence and the Concord Roads agreed substantially to form a new corpora- tion, to put their roads together and pay the same dividends on their stock as it then stood ; that they would own their shops together and all rolling stock together and all personal property together. And under the terms of this contract the 24 Manchester & Lawrence Road was operated until 1865. In 1865 the natural effect of such a monopoly followed. The Concord Railroad (there being but one line of road from Concord down to Manchester, from which point the Manchester & Lawrence branches, running off to the Boston & Maine, and the Concord continuing down to Nashua) believed it had absolute control of all the Northern business of New Hampshire and could turn it whichever way it pleased. It made a contract with the Lowell Railroad, by which it agreed to compel, and for a series of years did compel, the business of the North to come down over the Concord & Lowell Railroads. The Manchester & Lawrence was a closed road in effect. There was some trouble at first. Trains came from the North with orders to go down over the Manchester & Lawrence Road. The engineers appointed by the Concord Railroad endeavored to haul them over the Concord Railroad. The brakemen appointed by the North- ern roads blocked the wheels, and for a time there was a complete block. But the business was substantially turned over the Concord Road under the provisions of this con- tract. The terms of this contract have always been a dis- turbing element, and perhaps the first one in this Northern line. They contained the condition that if the Concord Railroad turned all the Northern business over the Lowell Road, its own business should be done at two thirds the re"*- © ular price. And the spectacle is witnessed to-day of trains brought over the Lowell Railroad made up of cars from the Concord, the Northern, and Concord & Montreal Railroads, when the two last-named corporations are required to pay 50 per cent more than is paid by the Concord Railroad for the same business. The substantial effect was to divert all business from the Manchester & Lawrence Railroad, which became in effect a closed road. 25 Now in 1867, to meet this state of things, the people of New Hampshire had passed this law in regard to such rival and competing roads as these were, combining by contract ; and making very stringent provisions to prevent such com- bination. Immediately after 1867, suits were instituted which have just been terminated ; and the court has since decided that two railroads have not the power to consolidate, and that the law of the State preventing such consolidation is a constitutional act. It was when the feeling of New Hampshire was excited by this contest then going on, that this Great Northern Railroad bill was brought there, which granted to the corporators the power to do the precise thing which the Legislature of New Hampshire had passed an act to prevent their doing, and which they were then litigating in the courts. Mr. Hoak. — Is that precisely correct? I think the only application was that to authorize the Boston & Lowell and the Lowell & Nashua Roads to unite. Mr. Choate. — I am coming to that; I have got the bill here. I say that when this application was made to the Legislature of New Hampshire, that was the state of public feeling and that was the condition of things. Nobody can be surprised that when the Great Northern Railroad charter was presented to the New Hampshire Legislature in disguise, they were in- clined to kick it out. Now I state here with the utmost confidence that this pro- position to form the Great Northern Railroad Company was never presented to either of the New Hampshire corporators in that corporation. Neither the Northern Railroad nor the Concord Railroad were ever asked to join it. They were never asked to form that corporation. They were never asked to unite in procuring an act in the State of New 26 Hampshire to form a consolidated through line. I do not think that it was ever intended that they should be asked. I have the act which was presented in New Hampshire, cer- tified by the clerk. It is this : — " An act relating to the Nashua & Lowell and the Wilton Railroad Corporations. " The Nashua & Lowell Railroad Company and the Wilton Railroad Company or either of them are authorized to unite with the Boston & Lowell Railroad Company under the provisions of an act passed by the Legislature of Massa- chusetts and approved June 23d 1869, entitled ' An act to incorporate the Great Northern Railroad Company.’” Now what is the effect of that act ? If they granted this act, does it not give the corporation formed there, i.e., the corporation composed of the Boston & Lowell, the Nashua & Lowell and the Wilton Branch Railroads, all the powers of Great Northern Railroad Company? At any rate, that is what the New Hampshire Legislature were afraid of. I think the fear is very natural. It is what the other railroads were afraid of. It seemed a little singular that after the act was passed in the State of Massachusetts authorizing the four corporations composing this through line to unite and form the corporation, a bill should be presented in New Hamp- shire (and the authority of New Hampshire was essential in order to give it any vitality) , limiting this power to two com- panies which were then substantially combined by a contract, and to a branch which was then under their control. That was the feeling in New Hampshire. I have no doubt that it was the feeling of the railroads in New Hampshire. I have no doubt they did all they could to defeat consolidation, not as consolidation, but to defeat this particular consolidation which was there asked for. I think they were right in doing it. I think that " the demagogues of New Hampshire ” have 27 done a wise thing, which the patriots of Massachusetts might imitate by defeating the whole thing. It deserves serious consideration whether anything further should be allowed to be done under this charter. Mr. George. — I understand you to say that the Northern Railroad which you represent did endeavor to defeat this bill and have that action taken. Mr. Choate. — I don’t know what action they took in the matter. Mr. Hoar. — I understood you to say that just now. I suppose you speak authoritatively for the Northern Railroad ; and I wish you to say whether the Northern Railroad was opposed to this consolidation. Mr. Choate. — I am unable to answer that question. The Northern Railroad was never consulted on that matter by the Lowell Road. Mr. Hoar. — What roads did you refer to? I understood you to say that opposition to it was universal all over the State of New Hampshire. Mr. George. — Does not that include the Northern Rail- road, which you represent? Mr. Choate. — I did not represent the Northern Railroad at that time. I thiuk I can say that all New Hampshire was opposed to that project in the form in which it came up. To a certain extent they did kick it out of the Legislature. Under the rules of the New Hampshire House, a bill cannot go to a committee until it is read a second time ; and they refused it a second reading by a very decided vote. Now I say that the question of the direct consolidation of a through line has never been presented in New Hampshire. I also want to call the attention of the committee to another matter, which came up at this very session of the Legisla- ture, which did ignominiously kick out that bill. This 28 question of through-line contracts came before that very Legislature. Somebody thought that in this, method of making through contracts and consolidating a line by con- tracts there was something wrong ; and they introduced an order relating to the management of the line, and of con- tracts made with the line, and other matters which are to a certain extent irrelevant, but directing the committee to in- quire " whether said Stark as manager for and in behalf of the Nashua & Lowell Road has not guaranteed said Vermont Central against loss by reason of the making of said lease with said Ogdensburg & Lake Champlain Road, contrary to law, and to the great detriment of the public ; and to report what legislation is necessary to protect the public and stock- holders against such useless expenditure and unauthorized contracts.” Mr. George. — Is that resolution introduced by the Con- cord Railroad ? Mr. Choate. — I have no knowledge. I don’t know where it came from. I simply wanted to show what the feeling of New Hampshire was on this point. There was a resolution offered which struck at these through contracts. I don’t know where it came from. Now the report of the Committee on that part of the question — Mr. Hoar. — This was a committee appointed to investi- gate the affairs of the Concord and Northern Railroads ? Mr. Choate. — I don’t know what the committee was. Mr. Hoar. — I have the phamphlet in my hand. The re- port begins at the beginning of it. They also wanted to know what salary said Stark has had, and other little curi- ous inquiries. Mr. Choate. — That is not a matter which is material here. It is attempted to show that New Hampshire is hos- tile to a consolidated line. Now this report, which was 29 unanimously adopted, shows what New Hampshire thought of a consolidated line, by contract, whether they are dis- posed or not to interfere with it. The report is, "that the Vermont Central has taken a lease of the Ogdensburg Road, and that the roads on this line below White River Junction have agreed to guarantee the payment of this lease to the extent Of the Ogdensburg business oil their line, and no further ; that said contract was negotiated and executed with great care, under the legal advice and sanction of Judge Redfield and J udge Abbott, of Boston, and Colonel George, counsel for the Lowell Road ; that there was no evidence that said contract was contrary to right or law, or to the detriment of the public ; but on the contrary, the evidence was that it was legally entered into with unusual care and for proper pur- poses.” This report was accepted uanimously. It was the same Legislature which kicked out this bill about the great Northern Railroad, I am told, the very next day after it was done ; and I think this shows conclusively that the Leg- islature of New Hampshire has no hostility to proper con- solidation and for proper purposes. While they objected to the consolidation asked for, they were perfectly willing to pass a resolution, which was unanimously adopted, stating that the contract of the Ogdensburg Road with these lower roads, by which they substantially agreed, as a body form- ing this line, to take the lease of the Ogdensburg Road for common benefit, and to contribute from their earnings from the business which came from the Ogdensburg Road, was a proper contract to be made, was beneficial to the roads and beneficial to the*people. Mr. George. — The Northern Road was in favor of that resolution, you say? Mr. Choate. — I cannot say, sir. 30 Mr. George. — I believe it was, sir. I wrote that re- port. I believe that I was at that time counsel for the Northern Road, or supposed that I was. Mr. Choate. — At the same session of the Legislature an act was passed authorizing the Boston & Lowell Road to lease the Wilton Branch for a period of ninety-nine years. Mr. George. — I think you are mistaken in regard to that. It simply sanctioned the existing lease. Mr. Choate. — Now what is the precise position you are asked to assume in regard to New Hampshire ? I think that the matter thus far merely shows there has been a railroad quarrel between the manager of the Lowell Railroad and the Legislature of New Hampshire. And you are now asked to come into that quarrel. You are asked, it seems to me, to punish New Hampshire and to snub New Hampshire for what she has done. ' I don’t know but it may be good judg- ment, but it seems to me it is about the same proposition as it would be to ask a merchant to kick his best customer out of the store because he has a quarrel with the shop boy. New Hampshire is the best customer of the city of Boston. If she has done wrong, it seems to me the better way would be to try to persuade her to do right. I cannot see that she has done wrong. The proposition as presented to the New Hampshire Legislature and there rejected, was not a fair proposition to make. It was not a fair proposition to make to the other railroads connected with this Northern line. To present it in the form in which it was put, to carry the power of the great Northern Railroad Company, in disguise, under such an act as this to any corporation, I don’t think was quite a fair thing to do. And under the circumstances I have stated, I don’t think it is any wonder that New Hamp- shire should have felt somewhat sensitive on the subject. It is hardly necessary to refer to the act which is now 31 proposed, the amended great Northern Railroad charter. It simply increases the power. It makes a corporation which, if it is to do what is there probably intended to be done, would have a capital, in debt and stock, of at least $100,- 000,000. Sixty millions was appropriated to buy up the Northern line. It has been testified 'here that it will take $50,000,000 to have your Western line by the way of the Tunnel. And in addition to all that, the proposition is to bring in the Cheshire, Rutland & Vermont Valley Railroads, which I think have a combined capital of nearly $10,000,000 more. Now it may be said that there is a means of exit for the Northern railroads. It has been intimated that the North- ern roads have another means of exit, if they are deprived of the existing one by the proposed combination. There is the Manchester & Lawrence, which may certainly be used ; but the difficulties in that are twofold. It has very heavy grades. Out of Manchester they are something like eighty feet to a mile ; and as a freight road, it is not what is needed for a through line. In the second place, it can have no coadjutor in Boston in the Boston & Maine, to the same ex- tent that it would have if the Boston & Maine Road were iden- tified with its interests, as has been the case with the Boston & Lowell. The Boston & Maine is substantially an Eastern line. Whatever comes to it from the north is merely incidental. To have a through line, we want a road situated as the Boston & Lowell has been, which shall be identified in interest with the Northern line. What would be the position of these roads in case you granted this acti of consolidation ? As I stated in my open- ing, it mainly makes every railroad which has a direction towards Boston, in a circuit of ninety degrees, tributary to this one corporation which comes here and tells you it will 32 have all the depot facilities on the north side of the city. It makes every outside corporation tributary to it. Now we feel in this matter precisely as Mr. Stearns of the Fitchburg Road says he should feel if he were representing an outside company. And I beg leave to suggest to the committee that the Northern Railroad here stands in pre- cisely the same position, as a railroad corporation, that the Vermont & Massachusetts does, and as the State of Mass- achusetts does representing a railroad property. I cannot see that the interest of the State of Massachusetts in this Troy & Greenfield Railroad and this tunnel is not similar to the interest of the Northern Railroad. So far as that is concerned, you are a railroad corporation ; and it would be simple suicide in the State to put together the only two cor- porations with which it can make a connection, and then come to them to make a contract. You must use the facili- ties of either the Lowell or the Fitchburg ; and the idea that before you undertake to trade with them and make a contract with them, you will put them together and make a monopoly of them, is, it seems to me, ridiculous. I suppose that the necessary effect of this arrangement upon the Northern line (1 cannot see any other effect) would be to establish a new line. They tell you that if you put the Fitchburg Railroad premises and the Boston & Lowell Rail- road premises together, there will be a saving of so much money. I think there will be a saving of money in that way ; but it will be a saving to such an extent, by the de- struction of business interests, that it will compel, abso- lutely compel, the building of another road. I do not see that there is any escape from it. You plac# the railroads of New Hampshire, representing some five or six hundred miles of road, roads with a capital of fifty millions, with- out a terminus, if you carry the Lowell Road over and 33 make it the terminus substantially of the Tunnel line. They cannot depend upon the station accommodations to be given them by a rival line. The only result will be, that you compel them to build a new road and get such depot accommodations in the city of Boston as they can. You place them in very nearly the same position in which the Boston & Maine was placed when its terminus of 40 miles went into the hands of a rival corporation, and the result will be the same. The Boston & Maine Railroad was compelled to build a new road to get to Portland. I think the result in regard to the Northern roads would be the same ; you would compel them to expend more money in getting additional depot facilities, and in building a new line from the present terminus of the Concord Road into Boston. Mr. Derby. — What are the gradients of the Manchester & Lawrence Railroad from Manchester to Lawrence and Boston, coming down from the west? Mr. Choate, —They are very heavy; they are over 80 feet coming from Manchester towards Boston as you come out of Manchester. Col. George. — The profile grade out of Manchester is 68 feet, and the actual grade is about 70. Mr. Derby. — Is that going east or west ? My inquiry is from Manchester to Boston. Col. George. — That is from Manchester towards Boston. As you come out of Manchester, towards Boston, the pro- file grade is 68 feet, and the actual grade is about 70. As you go the other way they are a little lighter. Mr. Choate. — The best information I can give is to read from the argument of Col. George before the committee in 1869, in which he says, that while a single engine over the Boston & Lowell Railroad will take from 50 to 100 cars, a 34 single engine can haul only 16 on the grades of the Man- chester & Lawrence Railroad. Col. George. — That is undoubtedly so. I am glad to hear you read from my arguments. They are very carefully prepared and very accurate, and I do not go back on them. I think I can tell, when I represent a man, whether he is one way of thinking or another. Mr. Choate. — The practical result, as we look upon it, of putting those two roads together, the Fitchburg and the Lowell Roads, — for you will observe that the form of the bill presented simply grants them the power to unite ; it does not require the formation of any through line whatever ; it is simple a grant of power to unite, — in its effect upon the outside roads is just to place them between an upper and nether millstone, between the blades of a pair of shears, giv- ing the power to a great monopoly controlling all the term- inal facilities, — I will not say to crush, because I think they have too much vitality to be crushed ; but take a road situ- ated in that way, it gives a enormous power to get control of and buy them up cheaply. For instance, take the whole Northern line. If the same corporation owns the terminus of the Fitchburg Road, the key to the Tunnel Road, and the Lowell Road, the key to the Northern Road, they can turn all the business first by one way until they break down the roads on one line and buy them up, and then turn all the busi- ness over that line and break down the other line and buy them up. I don’t wonder that the Lowell Railroad managers fora prospect like that are willing to go into an arrangement by which they give up the Northern line. Their business is not to provide accommodation, but to make money ; and I think it does furnish a good opportunity to make money. I think it is a valuable charter to grant. I think .the prospect is that any one corporation which is placed in control of those 35 two terminal routes from Boston to Nashua and Boston to Fitchburg, and all the terminal facilities, as they claim, and certainly all the most valuable terminal facilities on that side of the city, will have enormous power over the outside roads. That is one reason why we object ; that is one reason why we think the State has an interest to object to it; for the State of Massachusetts, as I have said, is in the same situation as an outside road, as the Northern Railroad. Mr. Hoar. — Would it interrupt you to ask whether you will state to the committee whether your Northern Road does or does not own a road precisely situated in the same way ; whether you do not own the Claremont Road and have the control of the road from Windsor down to Bellows Falls? Mr. Choate. — The Claremont Road is one which is of comparatively little importance. It is a local road running across the State. It is shown there directly south of the Northern. Mr. Hoar. — It would be another road for all the North- ern travel from Wells river to Boston, if you didn’t own it? Mr. Choate. — No. Mr. George. — Does not the Northern own the Claremont Road, which has no connection with the Northern Road? Mr. Choate. — They own substantially the whole line. It is two corporations. [Col. George pointed out on the map the line of the Northern Road, and the road from Windsor to Bellows Falls, and said :] The Northern Road owns that line that does not come within fourteen miles of it at any point. I want the commit- tee to understand how it differs. Mr. Choate. — It is a difference in decree. To take the © Lowell Railroad from the Northern line is about the same 36 thing as it would be to take the Tunnel from the Tunnel line and put it into the hands of a rival corporation. Col. George. — Will you be kind enough to explain the reason of the Northern buying the Sullivan Road outside of its line, and fourteen miles distant from any part of it? Mr. Choate. — Not so much to accommodate the public as to make money. Col. George. — That is the ground on which you appear here ? Mr. Choate. — That is the reason of the Fitchburg & Lowell Roads trying to consolidate. I appear to represent a corporation, and I think the interests of the corporation are in certain respects identical with the interests of the public and the people of Massachusetts. If we have had some experience in buying up competing roads, it cannot do any harm to tell what that experience has been. Col. George. — Whether last year the Northern Road did not buy up the Concord Road, and to-day in connection with the Montreal Road own a controlling interest in it ? Mr. Choate. — There was stock in the Concord Road which had passed into the hands of what my friend here calls speculators. They had a controlling interest, and the Lowell tried to buy it, but they did not succeed. On the contrary, if they were speculators they had the interest, or what they thought was the true interest of New Hampshire at heart. They preferred that the control of the Concord Road should be where it belonged, in New Hampshire ; that it should not be used as a stopper to a bottle, to bottle up the business of New Hampshire. The stock has now passed out of the hands of the " speculators,” and I suppose to-day is under the control of the Concord & Montreal Road and the Northern Road. Whether that gives them the control 37 of the Concord Road, I am not able to say. It is a com- paratively small portion of the stock in that road. [Col. George pointed oat on the map the position of the Concord, Northern & Montreal Roads, and said : ] Last season the Northern & Montreal Roads in combina- tion purchased a controlling interest in the road from Concord to Nashua, for the purpose, as I understand, of protecting New Hampshire interests. If there is any conflict between the interests of Massachusetts and New Hampshire, I would like to know it. I suppose Mr. Choate will not deny the fact. I suppose the fact is palpable that the Northern bought the Sullivan for the purpose of controlling both lines and throwing the business over the Northern Road. Mr. Choate. — The Sullivan Road is controlled by the Northern Road but it is leased to the Vt. Central for the same period of time as the line contract lasts. This through line contract provides that the Vt. Central shall have abso- lute control of the Sullivan Road, and it has it. Col. George — That contract provides that the whole business shall be thrown down over the Northern and not over the Sullivan. Mr. Choate. — I have already taken more time than I in- tended. I am reminded that the contract which Col. George says provides that the business shall all go over the Northern provides it shall be divided in the same way between the two lines in which it had been done in previous years, before the contract was made. One word in regard to the use of de- pots. The question perhaps might arise, why the Northern line cannot use the depots of the Lowell Road if this consol- idation takes place. It is unnecessary to add anything further to what has been said here by Mr. Stearns of the Fitchburg Road. You might perhaps frame a law by which you should give the different lines an absolute ownership — joint owner- 38 ship — • in the stations ; but I think it would lead to an in- finitude of troubles. I believe there is no way, with any- thing short of a joint ownership, that a railroad corpora- tion can safely and for its own interest transact its business in the station accommodations of a road which is distinctly competing and rival. If the Lowell Road and the Fitchburg are combined, you will make one of two things ; either the Fitchburg becomes part of the Northern, or the Lowell be- comes part of the Fitchburg and Tunnel line ; and it seems to us the probability is, that the Lowell will become a part of the Tunnel line, and we shall have to make our accommo- dations in the Lowell station with a competing road, with a road that has distinct and rival interests, and that the inevi- table result must be to break up the line. It cannot be oth- erwise. I do not think the interests of New Hampshire and Boston are diverse in this thing. I believe the interests of Boston require you to keep up as many distinct, absolute, competing lines as you can have. You can have four ; the Northern, the Tunnel, the Boston & Albany and the Boston, Hartford & Erie ; and we submit that it is not wise to take any steps which have a tendency to break down an existing line which by all the testimony in the case has been in the past and is likely to be in the future an efficient line. (