The minority of the committee in the plan which they propose to the legislature, have had two purposes in view. First: Absolute and perpetual control of the Tunnel, built with the public money for the benefit of the people of the whole Commonwealth; and second: state control of the Tunnel line. I use the words state control designedly, as distinguished from state ownership, or state management.
State ownership of a railroad without state management is useless. State management may sink into political management which might be disastrous to the public, and to the railroad. But state control is a very different thing; precisely what legislatures have sought in vain to attain. We have endeavored to give it by special legislation, but all in vain; and yet just this is what we want.
The idea is too firmly fixed in the public mind to be eradicated without a fair and conclusive trial, that fares and freights are now too high—that cheap transportation is necessary, and can be furnished without interfering with a fair return for the capital invested. You cannot expect private corporations whose whole object is to make money for stockholders, to try this experiment fairly, and ascertain how cheaply transportation can be afforded. Railroad corporations do sometimes compete, but the sole object and purpose of such competition is eventual combination, and in that combination, the public must suffer. We want to establish a corporation which shall compete to increase its business without any ulterior view of combination to raise rates, and such a corporation is found under the plan presented by the minority of the committee.
This bill proposes first that the Troy and Green field Railroad and Tunnel shall remain the property of the State.
Second. That the State shall obtain by lease the control of the railroads forming the direct Tunnel line. We have reason to believe that this can be effected. We have assurances that the Fitchburg Railroad Company will assent to the terms of this bill. If the only result of this bill is to secure the control of the Fitchburg Railroad it will be worth the trial. The Fitchburg Railroad with its connection with the Tunnel, has a commanding position with reference to the railroads of the State. What we want to secure is a free system of competition, without the power of combination, which is now the bane of our railroad system, in the hands of private corporations.
Rates are now fixed to a remarkable extent by combination, and not by competition. Every business man knows that the freight rates between important points are fixed at meetings of freight agents, who consider not what is a fair price for rendering the service, but what will best pay the corporations which control the business.
The great need of the business community of Boston and Massachusetts, is a line to the West, making the nearest connection with the Lakes, which will do the business at fair and uniform rates, and which shall be managed in the interest of the public, and not of stockholders. Such a line can be secured under the provisions of the minority bill, which will establish a through line with power to connect with Lake navigation at Oswego, on Lake Ontario, and be substantially under state control. The necessity of extending the line to Oswego, to some point on the Lake is obvious, because every other railroad communicating with the West, except the Great Northern route, is now under the control of New York. At any Lake port navigation is open for seven or eight months in the year, and gives a direct communication with the great centres of Western commerce.
The Tunnel line ending at Troy can give little advantage over the present Western line—the Boston and Albany Railroad.