472 



MASSACHUSETTS. 



vented further action. Soon after the adjourn- 

 ment of the Legislature the Supreme Court of 

 the State placed the property of the company 

 in the hands of a receiver, after a careful and 

 protracted hearing, which demonstrated that 

 the corporation was hopelessly insolvent. Pro- 

 ceedings were subsequently had in the United 

 States courts under the bankrupt act of Con- 

 gress. These proceedings were resisted by 

 the company, on the ground that a railroad 

 corporation was not within the purview of the 

 bankrupt act, but Judge Shepley, of the United 

 States Circuit Court, decided that such a cor- 

 poration was within the meaning of the act, 

 and might be adjudged bankrupt. The Gov- 

 ernor, referring to these proceedings in his 

 message to the Legislature of 1871, says: "The 

 early completion of the road is most desirable, 

 and no doubt the work will be resumed as 

 soon as the courts are able to unravel its com- 

 plicated affairs and to give the rightful owners 

 possession." 



The financial policy adopted by the State 

 has produced economy in expenditure, and 

 fully sustained the credit of the Commonwealth 

 at home and abroad. The total amount of in- 

 debtedness is stated at $28,269,881.93, which 

 is classified as follows : 



Loans to railroad corporations $9,483,920 00 



War loans 16,573,244 00 



Ordinary loans 1,070,000 00 



Total $27,127,164 00 



Temporary loans 1,142,71793 



Making the total funded and unfunded debt $28,269,881 93 



The sinking funds for the redemption of this 

 debt now amount to more than $15,000,000. 



The productive resources of the Common- 

 wealth directly applicable under existing laws 

 to the redemption of this debt are considered 

 ample for that purpose. 



Deducting the sinking funds, and other 

 resources set apart for the payment of the 

 public debt, the indebtedness of the State 

 amounts to $13,269,881.93. Within the last 

 eight years more than $12,000,000 have been 

 expended for the relief of the disabled soldiers 

 and their families, and the families of the slain. 

 In addition to this, more than $16,000,000 have 

 been paid in bounties to soldiers since 1861. 



In October, 1863, the deposits in the savings- 

 banks of the State reached the sum of $56,883,- 

 828.55. Since that date the increase has been 

 as follows : 



Amount in Increase over previous year. 



1867 $33,604,460 72 $12,699,319 40 



' 1868 97,408,360 34 13,803,899 62 



1869 114,801,60823 17,393,24789 



1870 138,232,271 59 23,430,663 36 



In seven years the increase in the amount 

 of deposits in these institutions has been over 

 $80,000,000, while the increase for the present 

 year has been equal to more than forty per 

 cent, of the total amount on deposit in 1863. 

 It is very evident that a large share of this in- 

 crease is not the savings of labor. The invest- 

 ments have been found to be safe, and almost 

 as remunerative as in other money corporations, 



where the funds are not so readily at the com- 

 mand of the owners. In his message to the 

 Legislature of 1871, the Governor calls atten- 

 tion to the rivalry of the savings-banks in the 

 exaction of high rates of interest on their 

 loans, and recommends some legislation to re- 

 strain the abuse. He says further: 



I again call your attention to the propriety of en- 

 larging the amount of deposits which may be made 

 by any one person. I can perceive no possible harm 

 to the public in such an increase, but, on the con- 

 trary, much deception would be avoided if the de- 

 positors be permitted to place considerable amounts 

 in banks convenient to their places of residence. 



The rate of taxation on deposits in these institu- 

 tions is only about one-half the average rate of the 

 State. Owing to the great changes in our financial 

 affairs, the drift of these institutions is, to become 

 ordinary money corporations, and it is questionable 

 whether such a great relief from the public burdens 

 is longer justifiable. An increase of the tax would 

 also tend to check the establishment of new banks 

 where there are enough already for the accommoda- 

 tion of the public. In most of our large towns and 

 cities there is no real necessity for more banks. 



The work on the Hoosac Tunnel has pro- 

 gressed favorably during the year, and par- 

 ticularly during the last six months. On the 

 1st of January, 1870, there had been completed 

 on the east end section 6,121 feet, and 4,505 

 at the west end, making an aggregate of 11,026 

 feet, with 14,005 feet to be completed. The 

 depth of the central shaft was 798 feet, with 

 232 additional to be done. The cost of the 

 work done up to that time was not far from 

 $500,000. On the 1st of January, 1871, there 

 had been completed at both ends 13,622 feet, 

 or very nearly 2^- miles. The distance remain- 

 ing was 11,409 feet, or very nearly 2-f? miles. 

 This shows a gain for the year 1870 of 2,596 

 feet, or very nearly half a mile. The central 

 shaft was finished down to the grade, and the 

 contractors were working from that both 

 ways. With the work thus progressing simul- 

 taneously at four places, it was thought that 

 the progress would be very rapid, and the 

 whole completed before the time specified in 

 the contract, March 1, 1874. The cost of work 

 performed by the present contractors up to 

 January 1, 1871, was $1,248,184.13, and the 

 amount paid them by the State $740,047.31, 

 leaving a reserve of $508,136.82, which is held 

 as security for the faithful performance of the 

 contract. 



The number of passengers carried over the 

 steam railroads of the State in 1866 was 

 22,126,881; in 1867, 23,660,401; in 1868, 24,- 

 916,021; in 1869, 28,136,391; in 1870 (ten 

 months), 24,721,535; total since 1865, 123,- 

 551,226. Of these, 67 were fatally injured. 

 During this period 175 employes were killed, 

 26 of them in consequence of coming in con- 

 tact with bridges while on top of the cars. 

 The average annual number of men regularly 

 employed was 10,786 ; 205 persons were run 

 over and killed while walking or lying on the 

 track, viz., 41 in 1866, 41 in 1867, 44 in 1868, 

 40 in 1869, and 39 in ten months of 1870. 



