Report of the Hoosac Tunnel and Troy and Greenfield Railroad, by the Joint Standing Committee of 1866

BOSTON April 25, 1866. Hon. Tappan Wentworth, Chairman of Hoosac Tunnel and Troy and Greenfield Railroad Committee

Dear Sir:—Hearing that questions have arisen in regard to the propriety of contracting the work upon the Hoosac Tunnel, it may not be improper for me to say that that subject (contemplated in the Act of 1863,) has for a long time engaged the serious attention of the commissioners, who have already a contract for constructing a portion of the West End, before the governor and council, awaiting their approval under section 3 of chapter 214 of the Acts of 1863.

When the economic value of their new facilities shall be demonstrated, they expect further to avail of this system 80 far as the interest of the State (as represented by the rapid, economical and certain progress of the work,) shall warrant.

While the high prices now prevailing will probably render the letting of large jobs at this time injudicious, they are not of short contracts, or of letting portions of the work to the miners by the piece.

Very truly yours,J. W. Brooks, Chairman.

The Committee coincide with the views of the commissioners. And the justness of their remarks, that the State must not expect to have the work done at less than its cost, is borne out by the operations under the contract for the West End enlargement, where the State has increased the contract from four to seven dollars and fifty cents a perch, in order to insure the miners a compensation for their labor.

It may be proper to state in this connection, that the labor done upon the road and tunnel by early contractors, has not tended to a "rapid, economical and certain progress of the work," and that if even the whole work should be put under contract, the interest of the Commonwealth would require the continuance of a commission, and the services of an engineer of the highest skill and integrity to superintend its performance in order to avoid a loss and damage similar to that which occurred to the State while the work was under the nominal control of the Troy and Greenfield Railroad corporation.

The retirement of all the gentlemen who comprised the board of commissioners, first appointed under the legislation of 1862, affords the Committee an opportunity to acknowledge the eminent talent and ability which they respectively possessed for the discharge of the important duties assigned to them, and to bear testimony to the industry and intelligence displayed in their elaborate and comprehensive report upon the subject of the railroad and tunnel in 1863. It was fortunate for the State in that crisis in the affairs of this enterprise to be able to command so much practical information upon a question so interesting and important, and at the same time so difficult of solution.

But in addition to the duty of furnishing an opinion of the feasibility and mode of constructing the tunnel, and of the propriety of opening this line of railway communication with the West, the commission was instituted to carry on and superintend a most important and difficult public work, involving the expenditure of several million dollars. Yet each of the gentlemen composing the board was engaged in other duties requiring substantially their whole time and attention. Under these circumstances their personal observance of the progress of the work could not be given to a degree satisfactory to the public, or essential to the interests of the State, and the responsibility of the operations came to devolve upon the engineer at the works, and the chairman of the commissioners in Boston. These irksome labors were discharged with diligent faithfulness, and as the event has proved with a physical suffering to one of them that has called forth a general expression of regret and sorrow.

By chapter 214 of the Acts of 1863, the governor is authorized to draw his warrant on the treasurer for such sums as may be required, from time to time, by the commissioners, for the purpose of carrying out the provisions of law for the completion of the tunnel and railroad. The commissioners under this enactment have made monthly requisitions upon the governor, transmitting at the same time vouchers for the expenses of the preceding month; and upon this information and requisition the warrants have been drawn. By the 293 chapter of the Acts of 1866, a general supervision of the work is vested in the governor and council, with power to "correct abuses, remedy defects, and impose and enforce requirements in such manner as the interests of the Commonwealth shall, in their judgment, require." As the commissioners exercise a delegated power, there would have been a manifest propriety in requiring of them, from time to time, a report upon the progress of the work, and of their own doings even under the Act 1863, so that the governor might have been more fully provided with information touching the necessity of the requisitions. But under the Act of 1866, it appears essential that the commissioners should report monthly to the governor and council the general plan of operations pursued, the progress of the work, and the manner and extent of their own superintendence of the same.

The Committee are therefore of opinion that the commission should be reorganized in such manner that the State could command the whole time of its members: that a greater degree of personal attention should be given by them to the work than it has heretofore received: that the commissioners should keep minutes of their doings which shall be open to the inspection of the governor and council, and the appropriate legislative committee: that their monthly communications to the governor and council should embrace, in addition to the past, and the requisition for the current month, a report of the operations, the progress of the work during the previous, month, and the manner and extent of their own superintendence of the same.

The Committee are also of opinion that a due regard to economy in conducting the enterprise requires that the commissioners should at once, by experiment, ascertain the probable time required to excavate the enlargement of the tunnel, and that the work upon the enlargement be regulated and pursued with a view of avoiding any unnecessary delay in operating the road after the heading is removed.

In concluding this Report, the Committee cannot forbear to express their obligations to Mr. Doane, the engineer in charge of the work, for the assistance rendered by him in aid of their labors, nor withhold their approbation of the faithful and able manner in which he has discharged the duties of his office, so far as they have come under their observation. The Committee are indebted to Mr. Hill, the superintendent of labor, for his uniform attention during their examinations, and they fully recognize his capacity for his position, and his interest in the operations. They are likewise indebted to Mr. Hall, the intelligent master of the machine shop, for very valuable information concerning his particular department. And also to Mr. Field, the able and efficient engineer of the railroad, for a very satisfactory report upon that portion of the work under his direction.

TAPPAN WENTWORTH,—– –,2WILLIAM L. REED,Of the Senate.MOSES KIMBALL,GEORGE B. LORING,SYLVANDER JOHNSON,B. F. TAFT,E. H. CHISHOLM,SILAS JONES,JAMES R. GLADWIN,Of the House.

APPENDIX

[A.]

Sketch of the Proceedings of the Troy and Greenfield Railroad Corporation, from its organization to the surrender of the Road under the mortgage, and the adoption of the work by the Commonwealth.

The charter of the Troy and Greenfield Railroad, was granted in 1848, and authorized the construction of a railroad with one or more tracks, from a point on the Vermont and Massachusetts Railroad, at or near Greenfield, to some point on the line of New York or Vermont, convenient to meet or connect with any railroad that may be constructed from any point at or near the city of Troy, on the Hudson River in the State of New York. Its capital stock was limited at $3,500,000.

The corporation was authorized to contract with the owners of any contiguous railroad leading into or from either of the States of Vermont or New York, for the use of the whole or any part thereof, or for the running and operating the two railroads conjointly, or for the leasing of such contiguous road, or for any other road, or for the letting or hiring of their own road to the owners of such contiguous road, or of any other road which composes a part of the railroad line between the cities of Boston and Troy, of which the Troy and Greenfield Railroad shall be a part.

The first meeting under the charter was held June I, 1848, at which subscription papers were voted to be issued and circulated, in order to organize the corporation. In 1849, March 16, the subscribers to the stock held their first meeting, and organized under the charter.

At the annual meeting, February 6, 1850, the stock was apportioned among the neighboring towns as follows:-

It was also voted to apportion the directors among the towns in the following manner, to wit:—

North Adams, 3; Florida, Rowe, Heath and Monroe, 1; Colrain, Buckland and Hawley, 1; Shelburne, 1; Greenfield, Deerfield and Conway, 3; Williamstown and Whitingham, 2; Charlemont, 1; and one director at large.

Before the annual meeting in 1850, the directors had voted to assess three per cent. upon each share of the capital stock. This vote was passed April 11, 1849, and on the first day of October in the same year, they voted that the construction of the road from the State line at Pownal, Vermont, to Adams, and from Greenfield to Shelburne Falls, be put under contract as soon as sufficient subscription shall have been obtained therefore, and that the two ends aforesaid shall be constructed simultaneously.

1850, January 28, the treasurer had received the sum of $2,203.94, and had paid out on bills approved by the president, $2,203.57, leaving a balance in the treasury of $0.37.

Sundry assessments amounting in all to 75 per cent. upon the subscriptions, were afterwards voted, the last on the 6th of May, 1852. These assessments were rescinded by a vote passed July 23, 1858, and it also voted that the several amounts heretofore paid by individual stockholders, except on assessment laid April 11, 1849, be credited to their several accounts on assessments now or hereafter to be made.

1850, October 28, the contract with Messrs. Gilman and Carpenter, was ratified, and on the 29th, the president was authorized to execute it.

The Committee have not found this contract nor any record stating its provisions.

December 27, 1850, a committee reported that the whole amount of stock subscribed, was $250,800, of which $7,200 was payable in land damages and materials for the road; and that Messrs. Gilmore and Carpenter had subscribed for 500 shares of stock, to wit, $50,000.

On the 7th day of January, 1851, the directors voted to break ground the next day, and on the 27th of May in the same year, they voted to expend a sum not exceeding $25,000, in experiments upon the east side of the mountain, at or near the mouth of the proposed tunnel.

In 1851, the corporation petitioned the legislature for a loan of the State credit for two million dollars; but the application was unsuccessful.

The failure to secure the aid of the Commonwealth, appears not to have discouraged the corporation, for on the 7th of August, 1851, the directors voted that they would proceed forthwith from Adams to the New York line, and simultaneously incur all the necessary expenses to make thorough experiments with such machines as promise to facilitate the construction of the tunnel, and when the road is begun from Greenfield, it shall be after an arrangement is made to construct it to the foot of the mountain in Florida and connect in some way with the road at North Adams.

The Troy and Greenfield Railroad Corporation having directed its attention to a connection with the Troy and Boston Railroad Company through a portion of the State of Vermont, and a charter having been obtained from the legislature of Vermont, incorporating the Southern Vermont Railroad Company, whereby such connection could be made, a committee of the directors of the Troy and Greenfield Railroad Company and of the Southern Vermont Railroad Company made an agreement, subject to the modification or ratification of the stockholders of each company, "that the stock of both of said companies and their franchises from said Greenfield to the west line of Pownal, in the State of Vermont, shall become and be one joint, consolidated stock and interest, with equal and common rights and privileges to the stockholders of both companies;" it being understood that an application shall be made to the legislature of Vermont for a change of the name and style of the joint corporation mentioned in the said Act of the Vermont legislature. This report was made to the board of directors, and it was voted that the same "be accepted and adopted, recorded and placed on file." Subsequently the Southern Vermont Railroad was leased to the Troy and Greenfield Corporation on a perpetual lease for $12,000 per year; and the 21st of April, 1860, it was purchased by the Troy and Greenfield Corporation for the sum of two hundred thousand dollars, with money advanced to the last named corporation by the Commonwealth. In the report of the commissioners on the Troy and Greenfield Railroad and Hoosac Tunnel, the Southern Vermont Railroad is estimated to have cost from $110,000 to to $125,000 only.

In 1858, another application was made to the legislature for a loan, but with the same result as in 1851. In both instances, committees reported in favor of the application.

In 1854, the application was renewed, and was successful. The Act was passed on the fifth day of April, 1854. By the first section, the treasurer was authorized to issue scrip, as certificates of debt, for the sum of two million dollars, to be expressed in the currency of Great Britain or in federal currency, as the directors of the Troy and Greenfield Railroad should elect, to bear an interest of five per cent., payable semi-annually, and redeemable in thirty years, for the purpose of enabling the Troy and Greenfield Company to construct a tunnel and railroad under and through the Hoosac Mountain, in some place between the "Great Bend" in Deerfield River, in the town of Florida, at the base of Hoosac Mountain, on the east, and the base of the western side of the mountain, near the east end of the village of North Adams, on the west. The scrip was to be delivered to the treasurer of said Troy and Greenfield Railroad Company in the manner and upon the conditions following:—$100,000, when it should appear to the satisfaction of the governor and council that said company had obtained subscriptions to their capital stock in the sum of $600,000, and twenty per cent. upon each and every share of said six: hundred thousand dollars should have actually been paid in, and seven miles of their railroad and one thousand lineal feet of their said tunnel under the Hoosac, in one or more sections, of size sufficient for one or more railroad tracks, should have been completed.

$100,000, when ten miles of their said railroad, in one or two sections, and ten thousand lineal feet of their said tunnel, in one or more sections, should be completed.

$100,000, when fifteen miles of their said railroad, in one or two sections, and three thousand lineal feet of their said tunnel, in one or more sections, should be completed.

$100,000, when twenty miles of their said railroad, in one or two sections, and four thousand lineal feet of their said tunnel, in one or more sections should be completed.

$100,000, when twenty-five miles of their said railroad, in one or two sections, and five thousand lineal feet of their said tunnel, in one or more sections, should be completed.

$100,000, when thirty miles of their railroad, in one or two sections, and six thousand lineal feet of their tunnel, should be completed.

$100,000, when thirty-two miles of their railroad, in one or two sections, including all the line east of Florida, and seven thousand lineal feet of their tunnel, in one or more sections, should be completed; and for each additional portion or portions of said tunnel of fifteen hundred feet, in one or more sections, completed by said company, $100,000, subject to the condition that the last $200,000 should be reserved until said company, or their successors, should open their railroad for use from Greenfield to the line of the State in Williamstown; and subject also to the condition, that, prior to the second delivery of scrip, thirty per cent. of the same shall have been paid in cash to the treasurer of the company by the stockholders thereof, in addition to the $120,000 to be paid prior to the delivery of any scrip; and that upon each application for scrip, in pursuance of the law, and prior to the delivery thereof, thirty per cent. of the scrip then applied for shall have been paid by the stockholders to the treasurer of the company until the $600,000 subscribed for has been paid by the stockholders.

The Act further provided, that the treasurer of the company, within three months from the receipt of any scrip, should pay to the commissioners of the sinking fund created by the Act, ten per cent. on the amount of scrip so taken as a sinking fund; and after the road should be opened for use, twenty-five thousand dollars should be annually paid to said commissioners for the same purpose.

The Act further provided, that the said company should execute an assignment, as a pledge or mortgage on the railroad, with its franchise property and income, conditioned to pay the principal sum of said scrip, or so much thereof as the sinking fund should be insufficient to pay, and the interest, as the same became due; and that said company should assign all the interest it then had, or might afterwards obtain, in the Southern Vermont Railroad Company.

In 1855, the legislature authorized certain towns on the line,—to wit: Ashfield, Buckland, Conway, Colrain, Charlemont, Deerfield, Greenfield, Hawley, Heath, Rowe, Shelburne, Adams, Florida, and Williamstown,—to subscribe three per cent. on their valuation, respectively, to the capital stock. This Act was not fully complied with on the part of the towns, and $125,000 only is reported to have been realized from that source.

In 1855 a contract with E. W. Serrell to construct the work was reported to and accepted by the directors. This contract does not appear among the papers of the corporation, and its terms cannot be stated.

At the same time the capital stock of the corporation was by a vote increased to $1,500,000, and a location designated as the east line on the railroad near Cheapside was adopted. This singular resolution was also passed:—

Resolved, That the direction of the engineering operations within the Hoosac Tunnel after the location of the line is adopted, and plans perfected for the same, be left with the contractor, excepting the measurements for monthly and final estimates and the final acceptance of the work.

1855, July 18. Mr. Serrell having proposed to subscribe the sum of $600,000 (less the amount of the new subscription made by others,) provided the company would make such allowances as would enable him to dispose of the proposed issue of $900,000 of bonds advantageously, the directors voted to add $300,000 to the contract prices of the work, and that said $900,000 bonds as provided by the contract should be issued as soon as authorized by the stockholders, and placed in bank by the trustees to the credit of such persons as shall deposit against the same cash or railroad iron equal in value to sixty-five cents on the dollar. The said bonds to be taken by said Serrell at par and so estimated in his contract.

At this time sixteen hundred and thirty-five shares of new stock had been subscribed, amounting to $163,500.

The trustees alluded to in the foregoing vote were selected by a committee appointed for the purpose, and with power to execute to them a mortgage. They were J. V. C. Smith, Paul Adams and John G. Davis, all of Boston. The mortgage was executed, and is known in the history of the road as the "Smith mortgage." A resolution explanatory of this transaction was passed August 16, 1855, in the following words:—

"Resolved, That, whereas by the terms of the provisions of the resolution of July 18, 1855, by which it is provided that the bonds of the company to be issued, are to be placed in bank, &c.; therefore, as explanatory thereto, be it

Resolved, That it is not intended thereby to prevent the operation of the contract, but that the said bonds are to be delivered to Serrell & Co., on the warrant of the engineer, countersigned by the president and treasurer, whenever the engineer shall draw therefore on monthly or final estimates."

1856, February 7. The president reported to the directors that a contract had been redrafted and concluded with Messrs. Serrell, Haupt & Co., which was read, accepted and ratified, and the committee discharged. This contract was probably dated January 31, 1856, but the Committee have not been able to find it among the papers of the corporation.

1856, May 22. The directors voted, that in case Messrs. Serrell, Haupt & Co., would enter into an agreement to carry on the work of the Troy and Greenfield Railroad Company, in compliance with the terms and conditions of the loan Act, until 2,000 feet of the tunnel should be completed, the corporation would substitute bonds instead of stock in all payments to be made on account of work to be done to that time.

The treasurer was authorized to give the acceptance or notes of the company, to an extent equal to the whole indebtedness of the company to said contractors, upon which to raise money to carry on the work.

That the company would pay or allow to said contractors all discounts or losses to which they might be required to submit, provided such discounts or losses did not exceed the rate of 15 per cent. per annum.

That the trustees of the mortgage bonds should deliver to Mr. Herman Haupt one hundred thousand dollars in the bonds of the company in addition to payments due for work, said bonds to be sold or hypothecated by him, and the proceeds applied to the work. The bonds to be charged on account of the contract if not returned when the second payment from the State shall have been made.

1856, July 28. H. Haupt and W. A. Galbraith notified a dissolution of the firm of Serrell, Haupt & Co., and proposed to enter into a new contract.

E. W. Serrell notified that Messrs. Haupt and Galbraith were authorized to surrender the old contract.

The stock subscription of Edward W. Serrell and E. W. Serrell & Co., was transferred to H. Haupt & Co., the latter to furnish a guarantee that the assessments due and to become due should be paid.

E. W. Serrell resigned his office as a director in the company, and was appointed consulting engineer. W. A. Galbraith was chosen a director.

1865, July 30. A contract was made with Herman Haupt, William A. Galbraith, C. B. Duncan and Henry Cartwright for the construction of the road and tunnel. The firm name of the contractors was H. Haupt & Co. By the provisions of the contract all work done under previous contracts with E. W. Serrell or Serrell, Haupt & Co., was to be credited to H. Haupt & Co., and all payments under said contracts were to be charged to H. Haupt & Co., and credited to the Troy and Greenfield Railroad. "The road from the eastern terminus at or near Greenfield from some convenient point on the Vermont and Massachusetts line, as the same now is or hereafter be located," is assumed to be in all about forty-two miles in length.

"This contract includes the graduation, tunneling, masonry and bridging, superstructure, fencing, depot buildings, switches, turn-tables, water and fixtures, and in fine all labor and materials necessary for the construction of the road are included in this contract." The right of way to be provided and paid for by the railroad company. The work to be completed and finished in the best manner, for which the Troy and Greenfield Railroad Company agreed to pay H. Haupt & Co., "the sum of three millions eight hundred and eighty-three thousand dollars in manner following, to wit: Two millions of dollars in the bonds of the State of Massachusetts, to be issued under the Act by which the credit of the said State is loaned to said corporation, nine hundred thousand dollars in the six per cent. mortgage bonds of said company, five hundred and ninety-eight thousand dollars in the capital stock of said Troy and Greenfield Railroad Company, and three hundred and eighty-two thousand dollars in cash." The work of constructing and completing the road was to be done in compliance with the loan Act of April, 1854. One hundred and fifty thousand dollars to be expended by the contractors in depot buildings and necessary rolling stock, cars, engines, &c. under the direction of the board of directors. The stock subscription of E. W. Serrell and of Serrell & Co., amounting to five thousand nine hundred and eighty-seven shares, was to be transferred and assumed by Haupt & Co., payable in compliance with said Loan Act with the understanding that the assessments on the stock were to be paid by the performance of this contract in stock credits as provided in the contract, and the stock taken by the contractors at par.