LlUfifisHí
•««EAU Of RAILWAY gCONOMICli
WASHINGTON, 0, C
RAIL-ROAD.
Public attention, in the Northern part of the Commonwealth and
in New-Hampshire, has recently been particularly directed to the
importance of connecting the Concord and Fitchburg Railroad, by
constructing a link in the chain of Roads, which is now wanting
between Nashua and Groton, Mass. An application is now pending
in the Legislature of Massachusetts for an Act of Incorporation,
authorizing the petitioners to organize a Corporation for the purpose
of constructing the portion of the required Road, which 4s within
the Commonwealth;—the distance from the Nashua tei'minusof
the Concord Road to the points of intersection with the Fitchburg
Road in Groton, being seventeen miles—eleven miles in Massachp-
setts and six miles in New-Hampshire. This enterprise is engaged
in, with the expectation that another Road will, in due time, be made
from Worcester to the Groton terminus of the new Road, contem¬
plated by the petitioners, of twenty-four miles in length, and thus
connect Concord, N. H. with Buffalo, N. Y. by an unbroken line of
inland Railroads. If such expectations are realized, the saving to
the public, fi'om money now required to be paid for freight and
fares, must be fully equal to the interest on the whole cost of the
Road. It appears that the Western Corporation have freighted over
the Worcester Road, the past year, 123,000 Barrels of Flour, and, it
is believed, that the quantity used on, and near the proposed route
from Worcester to Nashua together with the quantity transported,
for consumption above said point, by Railroad, boats and teams will
exceed 100,000 Barrels, The distance from Worcester to Nashua
is forty-one miles, and from Worcester to Boston, fort;^-four miles ;
and the tariff of freight charges will not be higher from Worcester
to Nashua than from Worcester to Boston, and by using the proposed
Roads, a nett saving of $2.00 per ton or $20,000 will be made, and
for the benefit of the consumers of this article alone. This fact
furnishes a strong argument in favor of securing an end so desirable,
as that aimed at by the petitioners.
Again, a further saving in fares between the said points will neces¬
sarily be effected, and this item must be continually increasing, as
the intercourse between the North, East, South and West is becom¬
ing more important and constant. The price of fare will be, if the
^ ^ . Roads are patronized, as eveiy indication now promises they will
—whereas, the sum now charged from Nashua to Wor-
^ cester by Railroads is $3 in addition to carriage expenses at Boston.
L i tó H
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HE
OCT 14 19Î5
2
Tliis consideration will satisfactorily account for the fact that a large
portion of the travel, to the West, now finds its way over the Green
Mountains to Albany from New-Hampshire and portions of Massa¬
chusetts and Vermont, without employing Railroads as at present
used ; and the number of those, who, notwithstanding the price,
thus go by Railroad, may be safely computed at 5000, and the sav¬
ing of expense, to travelers will thus be yearly, only with the present
number estimated, $10,000. But aside from the expense saved, the
great benefits conferred upon that portion of the Commonwealth,
through which the Roads will pass, equally dividing, as they will,
the distance between Connecticut River and the sea-board, are of
no trifling nature, and these benefits will readily occur to all. In
case of war, it would be easy to discover the peculiar advantages of
a route so far inland, and connecting with all Roads leading from
Boston into the interior, and in addition, connecting with the Navy
Yard at Charlestown, and thus affording facilities of transportation
which those familiar with the heavy expenses heretofore incurred
by our Government, in that behalf, will highly and properly appre¬
ciate.
The importance of the contemplated route may be regarded in
another point of view. The stockholders of the Western Roads
and the Commonwealth are mutually interested in the triumph of
this great enterprise over all the difllculties and obstacles, which
have hitherto opposed it ; and the stockholders would not certainly
be back^'ard to engage in any project, promising so many advant¬
ages to them, as the construction of the link to connect Groton and
Worcester. It is very certain, that, should the Western Corporation
propose to pay another Corporation six per cent on a capital, which
should be invested in the construction of a Road from their Eastern
terminus in Worcester to the Fitchburg Road in Groton—such a
company would be immediately formed to construct the Road. In
such an event, or upon the supposition, that the Western Corpora¬
tion should construct the Road—a saving of expense, annually, would
be made, of $60,000, if the estimate, which will hereafter be presen¬
ted, is correct, and it is believed that it is strictly so ; and in addi¬
tion to this, a very convenient and easy access to ships of the largest
class, at the wharves in Charlestown would be provided for the cars
to discharge and take in freight, if necessary fas is often the case^
on board, and from vessels, without any extra expense.
It will not be out of place to remark here, that the Legislature of
Massachusetts, in 1839, granted a Charter for a Road, oveV this very
route—the requirements of which not having been complied with,
it is no longer of any eflfect. The route is free, apparently, from
ledges, and level, and there will not be any occasion for a single
bridge^ The estimated cost of the Road, which includes land-dam¬
ages, fencing, superstructure, grading, änd all other expenses, exclu¬
sive of Road Furniture, is $200,000. As the petitioners propose to
lease the Road now prayed for, to the Concord Corporation, fpróvi-
ded an arrangement, satisfactory to the parties in interest, can be
effected,^ for a long term of years, no additional salaries, cars, or
advertising will be required, and ho other expenses of any kind,
except those which will appear in the following estimate. The
operation of such an arrangement would doubtless be, that the
stockholders of the Road proposed, would receive the same divi¬
dend as those of the Concord Road, while at the same time, a de--
Auction to the public in prices of freight and fare would be made.
3
hy the Concord Corporation, as they would thus be relieved from
the tariff of charges under which they are now carrying their pas¬
sengers and freight over the Nashua and Lowell and Boston and
Lowell Railroads. The extent of this deduction will be at once ac¬
knowledged and argue much in favor of the enterprise in which the
petitioners are engaged. It should be explicitly understood however,
that this application is not presented by the Concord Corporation to
improve their stock, for their receipts are now all, that, under the
circumstances, they could reasonably wish. It is a matter rather
between the public and the lower Railroad Corporations, so far as it
respects the present tariff of fares and freight, and a matter of public
benefit so far as the construction of a line of Railroads from Wor¬
cester te Nashua is concerned.
The amount of business done on the Concord Road the past
year, warrants the belief that over 40,000 tons of freight and 34,000
passengers will pass over the two lower Roads, in the Concord cars
the present year. Allowing three-fourths of the freight to be of the
first class, the sum paid by the Concord Corporation, to the Corpor¬
ations of the two lower Roads will be, by the existing contract, for
this item of 30,000 tons, say $47,100
For 10,000 tons of second class, by the same contract, $11,800
For 34,000 passengers, $40,120
Estimated extra expenditure, by reason of an incon¬
venient Depot, in Boston, over that of using the
Depot in Charlestown, lately occupied by the
Nashua and Lowell Railroad Corporation at five
cents per ton, will be $2,000
Extra charge to the public in the item of truckage,
doing business on the Concord Road, above the
same item at Charlestown, averaging seven and a
half cents per ton $3,000
$104,000.
Thus the amount collected from the Concord Corporation and
the public, by using the two lower Roads exceeds $100,000. In
contrast with this, let the cost of doing the same business on the
proposed Road, in connection with the Fitchburg Road, be here
presented.
Interest on the Capital of Groton Road $200,000 at 8
per cent., $16,000
Additional cost to Concord Corporation for motive
power six times, daily, over 17 miles of Road with
Passengers, 31,926 miles, less 2104 saved by not
running into the Nashville Depot 29,822 at 25 cts, $7,455.50
Motive power for freight. 34 miles per day, at 25 cts, $2,660*50
Additional run of Freight Cars by increased distance
of ten miles, at i cent per ton per mile, on 40,-
000 tons of Freight, $2,000.00
Additional miles for large Passenger, and one Bag¬
gage Car 3 cents per mile, $563.40
Repairs on Road, 17 miles in length, $4,000.00
Ticket Masters and Switchmen at Nashua, Dunsta¬
ble, and Groton &c., $2,000.00
Cash paid Fitchburg Corporation, for motive power
for 40,000 tons of Freight at 15 cts per ton, $6,000.00
Additional fuel, &c. for Passenger Cars, $1,000.00
For Freight Depot in Charfestown, costing $15,000
at 8 per cent, interest,
Nett profit paid the Fitchbiirg Corporation,
Deduction of 50 cents each on 34,000 passengers,
" " " " per ton on 40,000 tons freight,
Sum total, $89,879.40
Thus it will appear that after having made a deduction of $37,000
in fares and prices of freight, a balance of $14,140.60 is left to be ap¬
plied to a further reduction of fares and freight, and this result is
produced by the business of the Concord Road alone.
It will be confessed by all that the advantages of cheap transpor¬
tation are shared by the city and country alike. It becomes, then,
highly important that strict economy should be observed in expen¬
ditures for the construction of Railroads ; and it may here be said
that the Fitchburg Road is well adapted to promote the mutual
benefits which city and country derive from a well located and eco¬
nomically constructed Road, The projectors and managers of this
Road have manifested a sound discretion and good judgment in
the location and cost of the same ; and particularly in the selec¬
tion of their terminus in Charlestown, the advantages of which
have been already alluded to, and are such as no other Depot for
Freights in the vicinity of Boston can boast. It is not pretended,
however, that the charges of truckage are entirely dispensed with
at Charlestown, but that they are comparatively small. As already
suggested, tracks are laid to the wharves, so that cars can be load¬
ed or discharged, from or on board vessels of the largest size.—
Large cargoes of salt have frequently been discharged there, by
emptying tubs of salt directly into the cars, without waste or de¬
tention. In the same convenient manner, are ice and other articles
put on board vessels for export, and thus the peculiar advantages
of the Charlestown depot become apparent. Whát would become of
the Ice Trade, now carried on so profitably, if there were no Depots
but those of the Boston and Lowell, and the Worcester Corpora¬
tions ? It is certain that the business, if not entirely ruined, would
be niuch injured in such an event. The Concord Corporation sav¬
ed over $1300 by having their Iron discharged at Charlestown—
thus being relieved from the expense of truckage, which must be
incurred by those using the Worcester and Boston Depots. The
Fitchburg Road will doubtless prove the cheapest avenue which
has hitherto been opened from Boston into the interior ; and if oth¬
er Roads in the vicinity take advantage of the facilities which it af¬
fords, it will make it still cheaper. If the Western Corporation
should build a Road from Groton to Worcester, or pay another cor¬
poration 6 per cent, upon the capital required to build it, what
would be the efifect ? It is known that the Western Corporation
paid the Worcester Corporation the past year over $150,000. Al¬
lowing now that the interest on the capital invested in the Road
from Worcester to Groton, amounting to $300,000, exclusive of fur-
$18,000
$6,000
$11,268
$4,200
$1,200.00
$10,000.00
$17,000.00
$20,000.00
mture, will be
Repairs on the same.
Motive power 6 times over the road, 144 miles daily,
or 545,292 miles per annum, at 25 cents,
Increase on distance for Freight Cars, with 60,000
tons of Freight, 14 miles, at 1-2 cent per ton per
mile,
s
On one large Passengev Car and one Baggage Car,
3 cents per mile, $525.84
Deduct for use of Cars, now furnished by the Wor¬
cester Corporation, 1-5 of Freight Cars for 60,000
tons, $12,000.00
Deduct for one fifth of the expense of loading and,
unloading Freight, or 8 cents per ton, $4,800
Cash paid the Fitchbiirg Corporation, at 15 cents per
ton for motive power on their Road, $9,000
For the us» of a Freight Depot, costing 20,000, at 8
per cent., $1,600
Additional fuel for Passenger Cars, &c., $1,800
Additional help on 24 miles of Road, $2,500
Profits paid to the Fitchbiirg Corporation, $15,000
$86,693.84
This would leave a balance the present year of about $63,000,
which in a few years would be double this sum, besides the addi¬
tional business made by this new route, which would doubtless af¬
ford an income equal to the interest on the cost of the Road. The
above item of $15,000, and that of $10,000, paid by the Concord
Corporation, in the first estimate herein before presented, as nett
profits, will pay the interest on nearly half the cost of the Fitch-
burg Road ; and thus a cheap route will be made still cheaper, and
the necessity will occur, in such an event, of reducing the prices
already named, in order to keep their income down to 10 per cent.
Some objections are urged against the proposed route, among
which are the following :■—
It is said that the Worcester Corporation have been put to a very
great expense to accommodate the Western Corporation, and that
they have therefore no right to seek another route to Boston, and
especially as, it is pretended, so large an amount of the stock is
held by widows and orphans, &c. But these considerations can¬
not be entertained, in the premises, as affecting the rights of the
Western Corporation. If, in the improvements of modern times,
some new agent should be discovered' to supercede the use of
steam, and its introduction should also make the present compara¬
tively slow means of railroad conveyance no longer desirable, as
now used, (as may hereafter be the case, should the hopes of some
œrial adventurers be realized,^ it w ould prove a truly unfortunate
invention for stockholders in Railroad Corporations ; and yet it
would not be pretended that those who used the new means of
conveyance should indemnify the losers in this behalf. Such a
course of argument would prove an unfortunate experiment for
any Railroad Corporation; for the trustees of the effects of many
a defunct Turnpike, or now useless Canal Corporation, would en¬
ter most promptly into the temple of Justice by such a door, so un¬
expectedly opened, and ask the claimants for justice to make good
the losses which they have ' occasioned the owners of Turnpikes
and Canals, by constructing Railroads.
As it regards the expenditures of the Worcester Corporation,
much might be said ; but only a few matters will now be alluded
to. It appears, by their Report for 1837, (published in January,
1838,j that the receipts had amounted to more than $200,000—
their capital then being about $1,500,000. It would be unfair to
6
say that the Road at that time was not économícalíy constructed,
for all the difficulties, mistakes, and extra expenses, connected with
the history ofnew^ and untried enterprizes, were met and overcome
by them in the progress of their work ; but after so much experi¬
ence, it is not easy to account for so larga an expenditure as has
since that time been made, ' amounting to about the sum of $1,400,
000 more ! and the difficulty of a satisfactory explanation to those
unacquainted with, Railroad affairs, will be increased when the
fact is stated that the Coiicord Railroad, of thirty five miles in
length, having two large Bridges over the Merrimack River, built at
an expense of about $85,000—having extensive and costly Depot
accommodations, both for Passengers and Freight, five Locomo¬
tives, 102 Freight Cars, eight long and six short Passenger and
Baggage Cars, an extensive building for repairs—all properly
furnished, cost but (including land-damages, and interest allowed
stockholders from the time of payment of their stock, and all oth¬
er expenses,) $750,000 ! The Cars, Iron, &c., of the Concord
Road will compare well with the same items of any other Road. It
should be stated here that the Worcester Corporation have since
1837 constructed new Depots, and laid down a second track, but
when it is asserted that so much expense has been incurred for the
business of the Western Road, some charity ought, at least, to be
extended to those who honestly think that one mighty considera¬
tion with the managers of the Worcester Road was the fact, that
by laying down a second track, and, as is understood, making a
loan to the Norwich and Worcester Railroad Corporation, a more
successful competition could be carried on with the Providence
and Stonington Railroads. And if it is fair and honorable for the
Worcester Corporation to compete with other Railroad Corpora¬
tions, ^and who will say that it is not?) for the New York and
Southern travel it must be equally as fair for the Groton Corpora¬
tion to offer some inducements to secure some of the business of
Albany and the West.
Another objection is that the Concord Corporation will not hire
or use the Road, as it will increase the distance &c. ; but is it not
highly probable that the great saving to the public would induce
them to do so ? It would seem that, if any additional inducement
was necessary, it would be found in the intention of the petitioners
to offer the stock of the proposed Road to the stockholders of the
Concord Road, and in proportion to the stock which they hold. The
intended arrangement to pay the same dividends to the stockholders
of the Groton and Nashua Road, as is paid to the stockholders of the
Concord Road, would make the stock, as it were, equal in value,
and thus by subscribing for it at par, the value of the property would
immediately rise to a premium on the whole amount of $40,000, be¬
ing the amount of premium now asked for the same amount of
Concord stock. And there are other reasons to induce them to do so,
but they need not be stated here.
As to the additional distance, it is believed that the advantages of
a wood above those of a stone Railroad, so far only as it regards the
Freight Cars, in saving them from damage — will more than out¬
weigh in importance the item of a little greater distance, but this
benefit is not included in the estimate. Again as it regards Passen¬
gers, the time consumed in reversing the train and backing up to the
Depot, in Nashville, from the point of intersection of the Concord,
with the Nashua Railroad and returning to the same point again,
7
together with the time spesttt in nanniiî^ ovei- a portion of the Low¬
ell Road twice, of nearly the same distance, will make up, fully, the
difference of time in the two routes.
It is said again that it will injure the Nashua Road. How can
this objection be properly urged ? No one acquainted with the facts
will say, for a moment, that the interest on their surplus being over
$30,000, is insufficient to keep good thg. intrinsic value of the Road ;
and by reference to their last Annual Report for 1842, it will be seen
that the number of passengers ^including way-passengersj was
92,943, and the amount of cash received for fares was $66,305.46.
Of which sum they paid to the Boston & Lowell Corporation $20,
509.62, and as the latter Corporation allowed the Nashua Corpor¬
ation 12i cents on each passenger carried in their own cars, over the
Boston Road, by contract, the amount left for the Boston Corpora¬
tion would be 87è cents on each passenger. The whole number
then fby calculation^ of through passengers (or those who passed
over both Roads) was 23,107. Now if this whole number of through
passengers, instead of taking the Nashua Cars, had gone by way of
Groton, the receipts of the Nashua Corporation would have been
$31,645.46 for their remaining business, in carrying passengers ov¬
er their own Road—which sum exceeds by $6,645 the amount of
the original estimate for receipts from passengers — being $1,200
over 8 per cent, on the whole cost of the Road, which, together
with their receipts from freight, and other sources, must be amply
sufficient to defray the expense of operating the road.
The Groton Road cannot be said to be a substitute for the Nash¬
ua Road, as about six tenths of the whole number of passengers,
passing over the same, take, and leave, their Cars, in Lowell, and
this number will increase with the growth of Nashua, Manchester
and Lowell.
3 5556 042 1
58808
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