The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1873-11-22
THE LOAN BILL.

at the payment of the seventh nstallmcnt
all the road would be completed and seven
thousand feet in the tunnel ready for use.
For each of the eleven succeeding Install
ments the company was obliged to finish
fifteen hundred feet of the tunnel, so that
when the eighteenth installment was paid
23, 500 feet (out of 25,03I would be
finished. The remaining installments 1.-TWO
in NUMBER were to be reserved until the
whole line from Boston to Troy was ready
to be opened. In the meantime the COM
payment of each nstalment five per cent
on the stock subscriptions this would
have brought the assessments up to one
hundred per cent. before the seventeenth
installment Of 100000 was advanced by
the state. Ten per cent of each INSTALL
ment was to be paid back to the state as the
foundation of a sinking fund The entire
property of the company was also to be
mortgaged to the state as security for the
faithful execution Of the provisions of the
law. These were the terms under which
the state of Massachusetts, first became a
partner in tie IIoosac tunnel | think it
will be admitted that the terms were easy
The estimates upon which the loan was
based was made by a. E. Edwards, c. L. !;
and was for double track tunnel. The
netimotn1 cost nf tbo turrol ,,.oe 81 O,Q
557, and of the road on both sides of the
mountain and equipment 81 ,301 .343, max
ing the total $3.50, 900. Although the
terms offered by the state were so sy, the
undertaking failed to attract capital.
THE FIRST CONTRACT,
In 1865 before any subscriptions had been
made or funds raised contract was made
between the Troy and Greenfield railroad
and f. W. Serrell of Philadel-
phia, who agreed to open the tdnnel and
construct the railroad thirty miles on the
east Of the mountain and fifteen on the
west for 50. 100000 The contractors were
to take stock to the amount of $40 900
In the same year the legislature gave the
towns along the road the pivilege of sub
scrlblng 10 tne capitai e,O,N - inc amount
of three per cent Of their last valuation
the privilege thus granted was not used.
BORING THE MOUNTAIN.
Scrrell & Co., did some work under the
first contract. The mountain was tapped
and the great effort of capital to overcome
natures barriers was commenced. Ii
could not be surmOunted the only way
was to cut ii passage through. Aggressive
commerce tackled defensive nature the
struggle was long and ttful. Rev. Robert
Crawford then minister of the COngrega.
tional church at North Adams. and now
pastor of the Presbyterian church at Green
field is accredited the honor of being the
first to drive the spade into the mountain.
Owing to the failure of the towns along
the line to subscribe, the Serrell contract
was annulled and the work ceased. In
January. 1856, a second contract was made
with Serrell e Co. In the same year the
state was asked to take Sl50000 of the
stock Governor Gardiner vetoed the bill
granting the request. The contract with
Serrel IL Co., was shortly afterward sur
rendered.
HAUPr AND HIS CONTRACTS.
A contract was made with Herman
IIaupt & Co., July so. 1856, by which the
company agreed to pay SO, 900 for the
completion of the road and tunnel. Two
millions were to be paid in bonds of the
state, 5000, 600 in six per cent mortgage
bonds of the state, 100000 in six per
cent mortgage bonds of the company
S59S,00O in capital stock and $685., 900 il
cash in monthly installments. llaupt 4
Co., assumed the stock subscriptions OF
Serrell X Co., amounting 5,9S1 shares, OF
the condition that no cash assessments
should be laid on the same, and that the as
sessment should be paid by the performance
of the contract lin stock credits Tho
corporation was unable to meet the re
quircmens of the contract as to cash pay,
ments, and it was annulcd, February
Is, 1853, another contract was made, il
which liaupt Il Co., released the company
from the cash payments and agreed to as
sumo the labor of procuring subscriptions
Under this contract the price for the work
was to be $4,000, 900. So, ZOO, 900 of which
was to be paid in state bonds, $780, 900 il
mortgage bonds of the company, and 81.
100000 in cash, to rs great an extent a
cash subscriptions could be procured, anC
the remainder in capital stock of the com
pany. The work was vigorously prose
cuted for time. Through the eXerlion,
of Mr. Ilaupt the towns along the line O
the railroad subscribed to the stock of tn,
company. BY means of these subscrip
tons the assessments on individual stOcl
and advances made by the contractors con
siderable progress was made during thu
spring, summer and fail of 1851 Tn,
officers of the company, 10y certifying tha
twenty per cent, had been paid in on si'
thousand shares of stock-using for III,
purpose portion of the shares owned b,
the contractors, on which hy the terms q
the contractors. ON which by the terms o
the contract no cash assessments were Il
be laid-were enabled on the Slh Of Octo
Der to draw the first installmcnt Of 500,
900 of the state loan. August 30, com
mittee of the executive council rcpOlte
that ten hundred and twenty eight feet o
the tunnel had been finished. In 1859 th
terms of the loan law were relaxed by tn
passage of supplemental law. 1t is no
necessary to extend this narrative by re
captivating the intricate terms of this law
Illustrating the erroneous notions that stu
prevailed in regard to the cost of the tun
mel, let me quote passage from the repor
of the legislative committee of that year
"rhe tunnel can undoubtedly be con
structed at a cost of not over two million
of dollars, and the work becomes easie
and less expensive as it gradually progrcs
SEES" The third installmcnt of $4,000
was paid by the state in January, 1860, VI
on certificate of the state engineer
About this time reports Of irregularities o