The manager forcibly urges the importance of lodging with the railroad commissioners power to compel connecting roads coming from outside the State, and connecting with the State's road at the State line, to provide their trains with the appliances which have become necessary for the safe and prompt movement of freight and passenger trains over the State's road, and owing to the lack of which accidents have already happened, accompanied by great loss.

Legislation is also at once necessary to give the manager controlling authority over the movement of all freight trains, cars, and engines in the North Adams yard, which is a converging point for all the roads, and perhaps in other yards. Unless this authority is in some one hand, all is confusion and interminable delay.

During the year constant and urgent appeals have been made in behalf of through freight and passengers for leave to run regular trains on Sunday, arriving at or leaving Boston in the middle of the day. As this is secular business, not coming under the well-established and judicial interpretations of necessity and charity, I instructed the manager that he could not allow the use of the road and property of the Commonwealth in manifest violation of its own laws, or afford any relief under them as they now exist. You alone have power to provide for such cases.

In view of the admitted fact, that the right to redeem this property of the State is in the Troy and Greenfield Railroad Company, and that at present there seems to be no certain method provided by which that right can be exercised or secured, it is your duty in equity and justice to provide one, either through the direct action of the legislature in an adequate manner, for I recognize that the matter is now in your control, or, which seems to me right, by authorizing a resort to the Supreme Judicial Court in such a manner as to preserve the rights of both parties. What course shall be pursued in that respect, it is for you to decide; but it is certainly just that this mortgagor should by your action be enabled to exercise or have the full benefit of redemption, which was preserved to it by the act of 1862. The question will occur, whether the legal relations of the parties have been modified in any way by the consent, express or implied, of either of them, and whether the party having the right to redeem has not so acted with full knowledge of the facts attending the progress of the tunnel, and so acquiesced in the manner and course of its construction, allowing the Commonwealth to make its immense outlays for the successful completion of the work without objection or protest, that it is now fully entitled to be repaid, in accordance with general legal principles, what it has thus expended in good faith under the advice of competent engineers, with all the light afforded at the time by the highest intelligence on the subject, and while carrying out, consistently with the general original project, those scientific and practical methods and plans which then seemed reasonable in connection with an enterprise of unknown and unparalleled magnitude and difficulty. Where, also, in the same good faith and in the necessary development of the work, changes were made from the original project, as in the location of the railroad, or the size of the tunnel, which subsequent experience has shown to have been wise and beneficial, and to which the mortgagor with full knowledge made no objection, it is claimed that the Commonwealth should, in accordance with the principles of law applicable to such a state of facts, be compensated for the proper cost of such changes and enlargements, if the mortgagor expects to come into possession of them, and enjoy all the profitable results accruing from them. While the Commonwealth should so act as to secure justice to the Troy and Greenfield Railroad Company, it should insist on justice to itself.

The following is a statement made to me, by the auditor, of the receipts and expenses of the Troy and Greenfield Railroad and Hoosac Tunnel.

EXPENSES.

Paid from the income . . . $178,251 19
Paid from'the fund . . . 92,302 60
Paid from the treasury . . 6,075 66

Total $276,629 45

Add interest .... 709,627 78
Paid during the year .

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RECEIPTS.

From earnings .... $239,295 69
From rents, &c. ... 28,699 17

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Net payments in 1880 .... $718,262 37

COST OF THE TUNNEL.

Net cost, Jan. 1, 1880 $19,523,579 94

Add net payments in 1880 .... 718,262 37

Net cost Jan. 1, 1881. . . . $20,241,842 31

The year here referred to is the calendar year: while the manager's report covers, I take it, the railroad year, which ends Sept. 30.

HARBORS AND TUBLIC LANDS.

The sales of land on the Back Bay during the year amount to $315,053.60; those at South Boston to $1,109,419.20. There has been received for tide lands occupied by structures licensed, $27,484.82.

The increase of foreign commerce at the port of Boston has been large, and the pressure upon the facilities for it greater than ever before. Active measures are in progress to accomplish the improvements at Charlestown and at the North End wharves which were made possible by the modification of the harbor lines last year. At East Boston the facilities have been materially improved and extended; but the commissioners will present for your action a proposed important change in the harbor line to permit a further increase of accommodation for foreign steamers at this point. At South Boston, upon the land sold to the New York and New England Railroad Company, the work of its preparation for their terminal facilities has been vigorously pressed. It was a good sale, and it is only just to the commis

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