whatever against the Commonwealth, as mortgagee. I need not enlarge upon that. You, gentlemen of the Committee, know very well what are the obligations of mortgagees in such cases, and they never can, under any circumstances whatever, involve the payment by the mortgagee of any preexisting debts of the mortgagor. That is clear enough. The Commonwealth comes in possession of this property, as a mortgagee, for the purpose of saving herself from further loss. Not one single dollar of these claims is even against the mortgagor, except, possibly, the claims for land damages. They are claims for labor, and service rendered the contractors, and for materials furnished them. Pray, is the Commonwealth, as mortgagee, under any possible obligation to pay the debts of contractors to build a railroad of which the State is the mortgagee? Suppose the Eastern Railroad should become insolvent; is there any obligation on the part of the Commonwealth to pay the debts due by that road to the contractors who built it or furnished the materials? And so with the other railroads, on whose property and franchise the Commonwealth has mortgages. The proposition is absurd.

Again, I say that these parties have no claim upon us, because we have already paid every dollar of these claims, in full, with the exception, possibly, of the claims for land damages. Every dollar's worth of this iron which is under attachment has been already paid for by the Commonwealth. Every dollar of this earth work, for which claims are made here, has been already paid for by the Commonwealth, to the corporation, and by the corporation to the contractors. And so with the other items, all the way through. What principle of law, or justice, or equity, requires the Commonwealth of Massachusetts to volunteer to pay these amounts over again? The reports of the State engineers will show, the facts will show,they are notorious, indeed, that the Commonwealth has paid every dollar that was due to the Troy and Greenfield Corporation for this work, done previously to the suspension of operations; and now we are asked to pay these same claims again, to other parties, with whom the Commonwealth has had no dealings, and who have no claim upon the Commonwealth. Observe that these claims are not against the Commonwealth ; nobody pretends they are; they are not claims even against

the Troy and Greenfield Railroad Corporation; they are claims from A, B and C, against Herman Haupt, contractor, every dollar of which the State paid to the corporation, and every dollar of which the corporation paid to the contractor.

Now, gentlemen, look at the precedent you establish by allowing these claims. If you pay these, you must pay the balance of the claims under schedule C-$23,546.95.

Again, if you pay these, you sanction the principle that the State must pay for "labor, services, materials, &c.," used in carrying on this work from the beginning, as well before April 6th, 1860, as after. Really, such claims before April, 1860, stand upon a better ground than those since that date; for the State has once paid in full for every one of these claims since April, 1860, and has not paid for those before that date. Under this head will come Gilmore and Carpenter's attachment. Gilmore and Carpenter were contractors, and the amount is honestly due them. This, with interest, amounts to between $70,000 and $80,000.

Then comes Haupt's claim for "damages," in consequence of the suspension of the work. Now, I will never admit that the State owes him a dollar; but I affirm, without fear of contradiction, that his claim is more plausible, and has more real merit, than any one of these claims for "labor, services, or damages," under schedule C.

I have no doubt he has brought himself to believe that the State, or the governor, or the State engineer, has wronged him. He claims, at least, $100,000.

Then, he has very respectable vouchers for the claim. In 1861, the matter of Haupt's grievances was laid before the executive council. It was referred to a committee, consisting of HUGH W. GREENE, JOEL HAYDEN, and E. C. SHERMAN. At the hearing before that committee, Haupt's claim, in his own language, was, "In consequence of the change of State engineer, and the change of policy consequent thereon, the company were unable to meet their engagements with contractors, &c., &c.; and there is a deficiency, consequent on the change of prices from those originally established, of $100,000." This claim the committee sanctioned, and unanimously recommended the adoption of the following order :

EXECUTIVE DEPARTMENT, COUNCIL CHAMBER,
BOSTON, August 16, 1861.

}

Whereas, Colonel Ezra Lincoln, the State Engineer first appointed under chapter 202 of the laws of this Commonwealth for 1860, did, in his official capacity, establish certain conditions, estimates and prices, on which the instalments of the State loan to the Troy and Greenfield Railroad Company should be paid to that corporation. And whereas said conditions, estimates and prices were assented to by that corporation, and became the basis on which the sub-contracts for the building of the road were founded. Therefore, it is

Ordered, That the State Engineer be and he is hereby directed to revise his estimates for the work done on said road in the months of May and June last-and to submit such an additional estimate as will be necessary to increase the amount already paid, to the amount which would have been paid, had his original estimates for the work done in said months of May and June, been based upon the conditions, estimates and prices established by Colonel Lincoln-and that those conditions, estimates and prices shall be the basis of all future payments, until otherwise ordered by the governor and council.

Again, Haupt's claim was endorsed by the committee of last year, who say, "The estimates of loss occasioned by the suspension, are highly conjectural, and vary from $10,000 to $100,000;" and they recommended an appropriation of $150,000 to pay Haupt as well as other claimants.

Then will come an indefinite number of claimants for money loaned to contractors and others, which money has gone into the work. "Why," they will claim, "should not a bank which has loaned money to a contractor to carry on this work be paid, as well as a manufacturer who sold iron, or an Irishman who sold muscle?" A hard question to answer, after you have allowed these claims. Where can you stop the working of the precedent?

An examination of these schedules would show that not one of these claims can be justified except upon the ground that the State owes either the Troy and Greenfield Railroad Company or the contractor. Let us look.

THE COMMONWEALTH DOES NOT OWE THE TROY AND GREENFIELD RAILROAD COMPANY ANY THING.

The Troy and Greenfield Railroad Company was incorporated in 1848, asking for the privilege of building their own road with their own money, and receiving an ordinary charter for that purpose. Only give them a charter, and they would finish the road and tunnel.

In three years they commenced begging for State aid, and continued the application till 1854, when they procured the passage of the two million loan. The conditions were, that $600,000 should be, bona fide, subscribed to build the road, and when twenty per cent. of this amount was actually paid in and a certain portion of the tunnel completed, they should receive a certain portion of the loan; and thus the work and the loan should go on together until the road and tunnel were completed, when they were to receive the last instalment of the loan. Only give them this, and they would finish the road and tunnel. They failed.

From that time to 1860, they applied for modifications of the Act in various forms for their benefit, and for additional assist

ance.

The utmost they could raise was $66,058.28 from individuals, and $125,500 from towns. In 1860, an Act was passed authorizing them to divide the balance of the $2,000,000 between the road and tunnel, thus releasing them from the obligation to build the road, but providing that the payments and the work should go on, pari passu, so that the last payment of the loan should be made for a completed road and tunnel. Only give them this, and they would finish road and tunnel. They failed.

Last year they knocked again at the door of the treasury, begging for only $150,000 more, and they would finish road and tunnel.

These are the facts. Can human ingenuity torture out of this state of things a claim that the State has not fulfilled every

tittle of her engagements to this corporation? or that she owes this corporation a single dollar?

THE COMMONWEALTH DOES NOT OWE H. HAUPT A DOLLAR.

1

Herman Haupt was a railroad contractor, and made a contract with the Troy and Greenfield Railroad Company, to build their road and tunnel, if they would transfer to him the amount of their assets and means, including what they were to receive from the State. They made the transfer, and he failed to fulfil his contract.

How can the State owe Herman Haupt a dollar? His claim, if he has any, is upon the corporation, never upon the State.

But as a matter of equity, has Haupt sustained any loss by his connection with this enterprise? Waiving that, how stands Haupt's account current with the Commonwealth?

This statement was published in various forms last winter, and not a figure has been impugned. Thus, instead of the State's owing Haupt, he has received at least $272,250 more than the work has been fairly worth.

This is true of every one of these claims, with the exception, possibly, of the land damages. I hold that it is equally true of the claims for land damages. I will not trouble

*Here was a nice little transaction which illustrates the character of the dealings of these parties with the State. The Southern Vermont Railroad, six miles long, cost, as competent engineers say, from $80,000 to $90,000. The Commissioners say from $110,000 to $125,000-average of estimates $100,000. In 1860, these tunnel operators managed to get the legislature to loan to the Troy and Greenfield Company $200,000 to buy this road with; and the $100,000 clear profit went into Herman Haupt's pocket! And the same disinterested gentlemen who lobbied that through, infest the State House this winter.