tonnage of 1858, at the rate of toll as fixed in 1857 would have given a revenue of two million, seven hundred and fifty-two thousand, nine hundred and twenty-five dollars. So that it is seen the State has lost over one million dollars in the reduction of tolls in 1858 and 1859. The theory advanced by those who favor the reduction is, that transit on the canals must be cheapened to retain the traffic and protect the treasury against railroad competition within the State. This may be true, to a limited extent, and to that extent the State has complete power to apply an effectual remedy. The spirit of the Constitution, undoubtedly requires that such rates of toll shall be imposed as will yield the largest amount of revenue. In 1858, the "surplus revenues of the canals were one million, seven hundred and sixty-six thousand, six hundred and seventyfour dollars less than the annual constitutional charges upon them, and in 1859, the deficiency will reach one million, nine hundred and eighty thousand, one hundred and fifty dollars, making three million, seven hundred and forty-six thousand, eight hundred and twenty-four dollars, which has been or must be supplied by loans and taxes. The railroad competition is directed mainly to the through traffic. Of the freight carried on the canals, there is only one ton of through to two tons of way freight, and when the tolls are reduced on one million of tons of competing freight, the same reduction is made on two millions of tons of noncompeting freight, showing clearly that the treasury does not thereby receive the largest amount of revenue. not the conclusion unavoidable, that competition has induced a much greater reduction of tolls than was necessary to retain the business of the lake countries to our avenues of transit and our commercial metropolis? I am of the opinion, that the reductions of the year 1858 and 1859 were inexpedient, and that the rates on most articles, should be raised nearly to those which existed prior to such reductions. Is Nothing, however, will so effectually increase the revenues of the canals as their entire speedy completion, for which it is estimated there is needed the sum of.... $1,280,540 37 exclusive of land damages, which are also estimated at... Making the total sum necessary. 700,000 00 $1,980,540 37 Of which three hundred and twenty-one thousand, five hundred and seventy-one dollars is already applicable to the purpose, leaving a balance to be provided of one million, six hundred and fifty-eight thousand, nine hundred and sixty-nine dollars, and thirty-seven cents. It cannot be denied that there have been mistakes in the past, arising in part from erroneous estimates, in consequence of which a larger debt than was necessary has been created for the enlargement of the canals, and their completion has been unduly postponed. The result has been to impose a heavy burden upon the people without their having thus far derived all the benefit which they anticipated. These mistakes are, however, matters of the past, important to us only from the responsibilities and duties they imposed upon us. The canals are to remain the property of the State. Their sale, inexpedient at any time, even if permitted by the Constitution," would be doubly so at a period when, by unwise legislation and uncontrolled competition their revenues have been reduced to the lowest point and when their completion, now so soon to be realized, will enable us to reap the fruits of the sacrifices and expenditures hitherto made. It is both practicable and advisable to entirely complete them before the opening of navigation in 1861, and to obtain on the Erie and Oswego canals the full waterway of seven feet in depth by seventy in width b Const. 1846, art. 7, § 6. I before the opening of navigation the present year. strongly urge that this be done, even if it should be necessary to delay the opening for the passage of boats a few days longer than ordinary. The amount of interest on the debt which the Legislature has annually to provide, is as follows: On the new Canal Debt of $12,000,000, con tracted in 1854..... $710,000.00 On the General Fund Debt, chargeable to the Sinking Fund... 354,606.10 On the several loans contracted to meet 34,629.28 2,160.00 $1,101,395.38 The interest on the old Canal Debt is provided for by the surplus revenues of the canals, but, under the Constitution, what remains of those revenues, after paying such interest, goes to the Sinking Fund for the redemption of the principal. The law under which the recent loan of two millions five hundred thousand dollars was made, provides for the levying of a tax sufficient to pay the interest and the contribution to the Sinking Fund to redeem the principal. Of the amount needed to complete the canals, however, not more than one-half can be advantageously expended during the year. Deducting, therefore, eight hundred and twentynine thousand four hundred and eighty-four dollars and sixty-eight cents from the above aggregate, we have three million, one hundred and thirty thousand, eight hundred and eighty dollars, and seven cents, as the amount to be raised to meet the current expenses of the year, to which must be added such extraordinary appropriations, if any, as are made by the present Legislature. The General Fund account was deficient about fifteen thousand dollars at the end of the last fiscal year. It will also become your duty to provide for the repayment of advances by the Manhattan Company for interest on the stock issued in 1854, and for other amounts becoming due thereon, unless the Commissioners of the Canal Fund shall make a loan for the purpose. The whole amount required will be seven hundred and ten thousand dollars.1 The system of economy and retrenchment, which was vigorously entered upon by the Legislature of 1859, should be continued, and the expenses of every branch of the government reduced to the lowest point consistent with efficiency. While judicious appropriations should be made for the charities which usually depend in a measure upon the assistance of the State, and which are not in a condition to dispense with it at present, new objects of expenditure, however proper and deserving, should be delayed till our canals are completed, taxation for the payment of interest ceases to be necessary, our various sinking funds are brought into a healthy condition, and the General Fund is made to present a working balance instead of a continued deficiency. But especial care should be taken to incur no expense and make no appropriations without providing the 1 The canal legislation at this session embraced acts which provided for continuing the enlargement and completion of the canals, interest on the canal debt, administration, and for several local canal improvements. money to pay them. The propriety of such a system must be manifest to all. New York possesses resources and revenues independently of taxation, which are adequate to the payment of the interest and principal of all her existing debts, if not to the support of her government, and it only requires a just and faithful administration of her affairs to secure that result. Prior to the year 1844, there were great differences in the position of the railroads with reference to the transportation of merchandise. While some of them were allowed to carry it during the entire year without limitation, others were permitted to do so only when the canals were closed and on payment of tolls, while one, at least, was absolutely forbidden to carry freight at all. In 1844, however, an approach to a more uniform system was made by giving to all roads that did not previously possess it the right to transport freight during the suspension of canal navigation, and by requiring all the railroads along the line of the Erie and Oswego canals to pay the same rates per mile on freight transported over them as it would have paid if carried on the canals. In 1847 all railroads along the central line were permitted to carry freight the entire year, and required to pay tolls. In 1850 the same provisions were, by the general railroad act, made applicable to all railroads running parallel to and within thirty miles of any canal. In 1851 all tolls were abolished upon freight carried over railroads, under the expectation that the revenues from the enlarged canals would prove adequate to the payment of the interest upon the canal debt. During the time that tolls were imposed upon the railroads the amount received from them by the State steadily increased from ten thousand, four hundred and fifty-eight dollars and forty-four cents, in 1845, to one hundred and sixty-three thousand, two hundred and thirty-seven dollars and twenty cents, in 1851. On the through freight carried the whole length of the line of the Central railroad in 1857, VOL. V.-11. |