Worcester daily spy. [volume] (Worcester [Mass.]) 1850-1888, 1871-01-09

two and tWO-tWeltthS miles.
To all who have had knowledge of the obstacles
which have been overcome since the enterprise was
commenced, there seems to be very little doubt OF
its speedy completion. That the public need TINS
new avenue very few question. Our railroads lead
ing to the interior cannot, or have not, kept pace
In their improvements with the increasing demands
for new and enlarged facilities made by the growing
business of the state As the opening of this avenue
becomes certainty, greater accommodations will
be needed by the connecting railroads and they cam
not make too early preparation for the increased
traffic The state has very large direct interest in
the early development Of this through line, and
should give every facility that is needed TO accom-
plish the object Some have been disposed to ques-
ton the ultimate value of the line in direct returns
to the treasury, because the people of other states
have been made to suffer heavy direct losses from
the want of wisdom and faithfulness in the mana
gers of these public enterprises. We confidently
hope for more care and fidelity in the management
of this work, by which the treasury will ultimately
be reimbursed for this outlay But if II should be
otherwise, the indirect advantage will far exceed
and outweigh the amount of money expended.
The last Legislature appropriated one hundred
thousand dollars for repairing the injuries to the
Troy and Greenfield railroad caused by the freshet
of October, 1859 The work has been done under
the superintendent of experienced engineers, who
have taken every possible precaution to prevent
recurrence of the disaster. The road and bridges
in much better condition than ever before, the
appropriation having been judiciously and econom-
iraly expended.
THE BOSTON, HARTFORD AND ERIE RAILROAD COM
PANY.
Soon after the adjournment of the last Legislature
the supreme court placed the properly OF Dos
ton, Hartford and Erie railroad company in the
hands of receivers, after careful and protracted
hearing which demonstrated that that corporation
was hopelessly insOlvent am informed that suits
have been instituted in other states under which
some of It's rolling stock and other property have
been sold. Various suits are pending in regard to
Its franchise and property involving questions of
much interest to the commonwealth, which holds
more than three and half millions of dollars of its
bonds. The state has loaned it about three million
six hundred thousand dollars, but this amount is
properly reduced by the sinking fund to about three
millions of dollars. For this indebtedn ess the
commonwealth holds as secnrity;-
First the obligation of the company to pay the
bonds issued by the state at maturity
Second three million six hundred thousand doi.
lars of Berdell mortgage bonds
Third, second mortgage on all the lands pur-
chased of the state and of the Boston wharf COM
pany at South Boston by the Boston, Hartford and
Erie railroad company.
wharf company, in accordance with their agreement
with the state, gave notice that they were about to
foreclose their mortgage. This notice must be
served nine months prior to any sale in behalf of the
Boston wharf company. Some action, therefore,
must be taken by the legl5 allure to preserve the
rights of the commonwealth IN this valuable prop
erty, as the treasurer has now authority to pay
the interest or principal of this underlying mort
gage This mortgage was given to secure the pay
ment of one million two hundred thousand dollars,
and covers about twenty-slX acres of filled land, now
in the hands of the receivers, and used by them for
the business of the road; and also about twenty
three acres offiats on which very considerable eX
penditure has been made in preparation for filling
as stipulated by the harbor commissioners. This
land, amounting to nearly fifty acres, lying on the
east side of Fort Point channel cannot fail to be-
come very valuable hereafter for the use of the
eral railroads, whose merchandise depots could be
located there with great advantage to them and also
to the general wants of the public That the prop
erty will be worth far more than the mortgage and
interest belonging to the Boston wharf company
long before the bonds loaned to the corporation by
the state shall fall due l cannot doubt and l
earnestly recommend an early examination of the
subject in order that some arrangement may be
made with the Boston wharf company else an
appropriation be made 10 save the property to the
state. If favorable turn in the affairs of the BOs-
ton, Hartford and Erie railroad company takes
place, that corporation or its successors will need
large proportion of the land, and the state may be
more ready than any private owner to favor the
corporation. The early completion of the road Is
most desirable, and no doubt the work will be re
sumed soon as the courts able to unravel its
complicated affairs, and to give the rightful owners
possession.
If there is any way by which the state can assist
responsible parties to fill the flats mortgaged TO the
state, it may be best to do so, but no other aid
should be given this enterprise, which doubtless
will be completed by parties holding bonds, and
Otherwise interested in the future success of the
terprise.
The states of Rhode Island and Connecticut are
deeply interested in the completion OF the road
They cannot fail to receive great benefit from its
intimate connection with the cOal-felds and the
great market of the west. If public credit is to be
again asked these states should be appealed TO- and
if they still refuse assistance and this route is not
opened, their citizens will have no occasion TO
charge Massachusetts with inaction. In fact, we
may well pause before aiding this company any
more if it is rot thought worth assisting by those
states, which are certainly to receive as many if
not more benefits from its construction than our
own. The trustees under the Berdell mortgage
have taken no steps to obtain possession of the
road for the reason that no party has placed funds
in their hands to pay counsel fees, and other neces-
sary expenses which are incident to the trust. The
commonwealth should furnish its share of this out
lay in connection with other parties who hold these
securities. Many of the bondholders are ready to
contribute, but seem to be waiting for the state to
take action feeling probably, that unless the
larger holders ready to furnish their proportion
what they would subscribe would be of little use
If the state subscribes its share OF the funds
sary, they will readily follow, and the trustees will
be able to proceed according to the terms of the
trust.
There seems to be no other practicable way to
bring the property into position that will enable
the parties concerned TO finish the road. That
course is agreeable to the conditions of the mort
gage and in accordance with usage in all such
trusts. Doubtless this will appear to be unfayor-
able to those persons having claims against the
poralon, but they have little hope of receiving
anything under the present receiyership, which, at
best, is intended to be only temporary. 1t may be
wise to give the trustees power to compromise such
claims appear to be just, in any way not incon-
sistent with due regard to the interests of the bond
holders.
RAILROADS
The report of the railroad commissioners will be
found to contain great variety of suggestions and
details the interest of which, to the people of the
that the annual sum now paid for transportation 10
the several railroads within limits exceeds the
whole amount of our state, county and town taxes.
II is worthy of inquiry whether the rates of trans
pOrtation cannot be reduced and, from the conse-
quent increase of business the corporations be
enabled to pay reasonable dividends, while afford
ing increased accommodations to the public.
Much of the time Of past legislatures has been de-
voted to the examination of the various projects for
new railroads brought to their attention, May not
the time now have arrived when general laws may
be enacted under which all new enterprises may be
organized and thus relieve you and your successors
from the labors of these Investigations?
The powers of the commissioners might also be
eXte ded, and they be authorized to determine
many points now controlled by local boards or the
legislature such as the crossing of highways, the
location of stations, and other minor matters,
which in other states have been found to be safe
under the care Of central boards or of the courts
SAVING BANKS.
From the report of the commissioner of savings
banks, it appears that the whole amount Of deposits
and surplus in the banks is nov S133 232 27l 49, an
increase of nearly S24 100000 over the amount on
deposit last year 1t is very evident that large
share of this increase Is not The savings of labor
The investments have been found to be safe, and
as remuneratiye almost rs IN other money corpora
tons where the funds are not so readily at the COM
mand of the owner.
Each year shows more deposits by capitalists.
Perhaps this is not TO be regretted 1t enables the
banks to do the business at a very small expense
the average cost last year being only twenty-seven
(27-l00l per cent. A very large
part of the funds is loaned on real estate, this
mer years by the legislature, and highly approved
by the public. By every prudent eXpedent we
should encourage these institutions. They are I'M
der the authority of the state and are generally
by honest, sagaciOus and faithful men.
The accumulations of capitalists Will, in the end,
End their way largely into these institutions for as
our banking law now stands, they furnish the only
place of deposit for persons desiring to have their
invested funds on interest, and at the same time
subject to their immediate call In this way money
that would seek other parts of the country for in
yestment is retained here for the benefit of our
people desiring to make permanent loans at moder-
ate rates of interest. am constrained to say here,
that there has been manifest desire with many,
especially the new banks, to pay large dividend in
order to attract deposits. This has led them to
exact high rates of interest their loans often as
high as eight per cent and sometimes higher 1t
is evident to all business that such rates can
not be obtained without impairing the security of
the loans. Thus far great care and wisdom has
been manifested in the conduct of these institutions
in their investments, but if spirit of rivalry is
angendered disaster will surely follow.
1t may be wise for the legislature to place some
wholesome check on this tendency of the banks to
exact high interest and consequently TO take doubt
full security. The burden falls heaviest upon the
small borrowers, who the least able to bear this
axactiOn. 1t is for the public welfare that every
man of moderate means should have a homestead,
and every inducement should be held out to him to
exert himself to obtain one, but it is discouraging
for him TO find that he cannot effect small loan
without being compelled to pay rate of interest
which will absorb large share of his surplus earn
ings.
It should be principle with the institutions to
n mn MOI As run hoo