The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-03-27


and IN that shape yields ample to The irea
sury aud is lost than the seed is lost, which,
when sown, produces abundant harvest. The trea-
sury, fact, overlooking with the tolls derived from
the canals and to those tolls the State may legally aud
properly for The purpose mol only OF meeting all
present obligations but Of extending the benefits oil
internal improvement those hitherto neglected por-
tons Of It's population whose common risk, and upon
whose common credit, the canals constructed
But il has been commended that these revenues are
placed aholy beyond the reach Of the representatives.
Of the people aud upon the ground that the 10Th clause
OF the seventh section Of the constitution Of 1871 has
declared that the tolls shall not be reduced or d.
vegted at any time before the foil aud complete pay
ment OF the moneys borrowed for the construction OF
the Erie and Champlln canals aud II is aseEed, that
IN point OF fact those moneys have not been fully aud
completely paid, according the literal requirements oil
that clause
This objections |, viii be perceived, If well founded,
Will apply equally 10 the reduction, TO the diversion,
OF lie tolls aud as It involves In both respects import
ant consequences, It deserves attention.
The convention which framed the amended consiitu-
ton assembled III the year 1921 and only few months
after the Comptroller had estimated that the tolls OF the
canals for the ten years next alter their complexion
would be only hundrd and fifty thousand dollars
annually From peculiar causes, not necessary now TO
state large majority Of that body participated IN the
doubts aud orebodgs as The eventual success OF the
canals, which then prevailed with considerable party
throughout the State and 1t IS not dhcnlt 10 h.leSe
that many Of its leading mcmbers honestly feared mat
the debt TO be incurred IN constructing these Works
would be paid and that il the tolls should be re-
duced diveued, perpetual lax TO pay the interest
would be imposed upon the people TWAS manly under
the influence Of this apprehension and far less, II at all
for the purpose OF alofdng specific pledge 70 the pub
lie creditor that the clause IN question Vas inserted IN
the constitution.
The total amour; borrowedt 10 construct the canals
was S76T2, 1872, Of which amount SIS, 326, 295 has
been paid directly 10 the public creditors and cerl
cafes Of stock have been cancelled TO That extent
The duty of receiving tile money and holding il for
the creditors, is by law entrusted 10 the board
Of Commissioners OF the canal fund and that body
stands between the State and its creditors, acting at
the same time agents Of the State and trustees for
the creditors. The Commissioners have discharged
their duty SO far to receive from the State . full
and complete payment" OF the deb; and they are
now engaged in executing the remainder OF their
trust, by paying the money 10 the creditors. They
have repeatedly notified those creditors BY public adj
vertisements, both in this country and Europe, and
also by written circulars wherever their residence
could be discovered that they had received the mo-
ney, and were prepared TO pay it; but asthe debt ac-
coriing 10 The terms of the loan, does not fall due
until 1915, the Commissioners in order 10 avoid the
responsibility incurred in keeping large an
amount permanently invested have offered large
premiums to the creditors TO come forward and re-
ceiYe payment and surrender their certificates. The
Commissioners have thus reduced The amount 10
81, 346, 1871; So that little more than two seyenths Of
the original sum now remains unpaid. It's proba-
bic that the holders Of some portion, at least Of that
remnant Of the debt, who reside principally in TO
reign countries, may neglect or refuse 10 receive
payment until the year 1915, and the money must
consequently remain invested for their benefit in the
hands OF The Commissioners. II will be perceived,
that there any force in this constitutional obec-
tion it will not be diminished BY the payment Of any
portion of the deb, however large and whether five
seventies or niney-nine hundredths of the debt
should be paid the position would not be varied.
The pledge can only be literally performed by pay
hal Toll M, laSf ni,,tp
creditor No middle ground exists between this ex-
treme consequence and the position that the pledge
is satisfied for all fair and practical purposes when
the amount of the debt is paid over 10 the Commits
Sioners and safely invested BY them in trust for the
creditors.
Ii is under these circumstances that the doctrine is
advanced, not on the part Of the holders Of this rem
nan of the debt lUr il is heeve that they who'll
ly Indifferent as 10 the matter but by those who seek
10 arrest the progress Of our public works, that the
canal tolls shall not be reduced diverted until the
last dollar Of this debt shall be literally paid TO the
creditor. That no matter how important it may be-
come TO our commerce and general interests 10 re-
wise and regulate the rates Of toll: that no matter
how just pressing may be the claims Of other parts
of the State for works OF internal Improvement; the
canal tolls shall be held "beyond the reach of the
Lagiaturc' at least until the year 1915 when inter
est ceasng on the debt, the creditor may probably be
willing to receive payment and the doctrine in
wolves this monSrouS consequence that the whole
accumulating amount OF tolls, which, with the COM
pound interest, would pFOQuce DIV the year lSl0, at
least ten millions Of dollars must be kept invested in
money as further pledge for the payment Of sum
Of two IN lliunS, and which very two millions already
exists in money invested safe security; and that
in the mean time the public improvements of the
Stale must be deferred and direct taxes imposed
10 defray the ordinary expenses of the govern
ment ..".. h. .......
In the Judgment of your committee no such Sbsur-
dity contemplated by the trainers ofthe conSti-
tuition, could ever be submitted TO by the people
The clause in question evidently was intended mere
ly as guarantee, not so much,to the public creditor
as to the people OF the State at large, that sum
should be raised from the tolls and other revenues
pledged, sufficient To satisfy the debt, and provide
against the hazard of taxation for that purpose And
this was all its object was never dreamed that ten
millions shonld be accumulated, in order to pay two
millions. The restriction was adopted upon the mis-
taken calculation that the revenue would not more
than pay the debt fast as it became due. Time
has disclosed that error. The money is raised and
ready; and upon every sound and rational principle
OF construction the pledge is satisfied The State has
done all that the most scrupuous good faith could
require, and exists why the tolls which are
thus redeemed and untetcred, should moi be regu-
lated or reduced in such manner as the Legislature
shall think h or applied to any beneficial purpose
which the pubic interests may require
And in this light the question has been viewed by
the representatives of the people BY the act of May
H. 1885 the Legislature directed that the canal tolls
should be expended in charging the Erie Canal 10
such dimensions as the Canal Board should deter
NINE who were thereby also authorized to construct
an indeu enden canal in such part of the route rs
they should deem expedcnt. The canal, according
10 he plan since adopted by the Board, will be about
three times as large in volume as the existing canal
and It's location will be changed for several miles of
the route The Revised Statutes in 1890, had ex-
plictly declared the Erie and ChampIain canals TO
be completed: SC that both legally and practically
the canal thus altered in dimensions and in location
may be considered as new work. The tolls ex-
pended in its enlargement, To all technical inents
arc as much diverted, as ifcmpl"yed in construct
ing lateral canal, or any other Of The public works
OF the State; and the consequences, SO far as the pub
lie creditors the people OF the State at large
concerned, are in no respect different.