The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1849-02-23
Canal Expenses.

dietary, to which were referred the con-
munica,ioEs Of the governor, and accom-
panying documents, commune ated TO the
house in reply 10 resolution calling for
information in regard To the expenses on
the Illinois and Michigan canal, and of
the appraiScment Of the canal lands, and
the provisions Of the 18th section Of the
nc. of February 81 1919, made the fol-
lowing REPoRT:
The short time allowed your committee,
at this late period Of the session, when the
regular business claims the attention Of eve.
ny member, renders il impossible for them
TO give the subject referred that FIJI and
critical examination which they would de-
sire. The reports Of the trustees of the ca
nal were received, as the house well knows,
but recently. They are volnminions, and
the examination given them has neccSSari-
" been imperfect. The information, how
ever, gathered from them and other SOurSeS,
will enable your committee to throw some
light on the subjects they have to consider
An investigation Of that portion Of the
subject which involves an inquiry into the
expenditures made by the trustees on ac-
count of the canal, gives rise TO question
Of power On the part Of the state TO interfere
with the management Of the work. II is
well known that under an act Of the gcuer-
al assembly ofthis state, approved FEB. y,
1919, aud a supplement to that act, APPROX
ed March |, 1915, the canal, lis land aad
properly Of every kind, It's tolls aud revcn-
ues, were granted TO the board OF trustees,
in trust for certain purposes mentioned in
the law. The objects Of that trust have not
been accomplished, and the grant, therefore,
cnp,ip,,.S At Ity tl,is tran e. tb.
loan contemplated to be raised was secured,
and the canal has been Completed. The
trustees passed 10 all the rights ofthc state,
IN regard TO this work, until the following
objects should be accomplished, viz:
First-A payment Of the subscriptions to
the loan of oncinIlion six hundred thousand
dollars, authorized 10y the act.
Payment OF the interest aud
principal Of registered bonds held by the
subscribers 70 the said loan.
Wird.-Paymcnt Of the interest Of the
non subscribing holders of bonds, or other
evidences OF canal indebtedness.
BY the act Of lSiJ, 1t is provided that a
majority Of the board Of trustees shall have
power to act and decide in all cases They
have power 10 establish a rate Of tolls, sub.
jcct TO be increased by the state 10 super.
intend the management of the canal ia all
respects, and To pay all incidental expen-
ses from the money received for tolls or
property.
The direct object Of the grant and Of
surrender TO the trustees Of 50 much power
over the work, was to secure a loan where
by the canal might be- completed. This
end was accomplished, and by the volunta-
~ contract Of the state with the bondhold.
her<, the trustees, who are the agents Of the
parties, succeeded to all tie rights and pow.
els secured and provided in the law. The
ccntraC' was made in good faith, aud should
he executed in the same SlirIt. The state
has reserved the right to redeem the canal
and the canal property at any time, but un.
Il that shall be done, or until the revenues
arising from tolls and the sale of property
shalt accomplish the object Of the trust be-
fore named, it may be considered doubtful
whether the state has the right TO irgi>latc
On the subject OF the expenses Of the work.
II is Thought by many. and 10y some whose
opinions are entitled To- great weight, that
all the old laws relating TO the canal and IN
force at the time the law Of Feb. u. 1873,
was enacted, and which are not iuConsi>t-
Cnt with the said act, are >tillin being; aud
that consequently, there are greater linn
It's 10 the power of the trustees than tho ir
acton would seem to suppose. Indeed
such seems TO be the express provision Of
section Is, Of the act last referred to. But
that the consequence Of such provision
would be to bring the management of the
canal within reach of present leg slalive ac-
ton ola the part Of the state. YOUR commit.
tee are not prepared to admit. They in
10 al 1, IL
the proper remedy for the state. in case oi
wrong, is in another direction. Her courts
of chaucrry may CONTROL the execution of
the trust created, according to the well set.
tied principles which govern courts Of that
character, whenever SuClI case of the vi.
Olation OF the trust shall occur as To furnish
occasion for the exercise Of chauccrv iuriS.
diclion; aud Your committee cannot see
that the principles of the case are material.
II different from those which govern the
great body Of trust cases; a class of cases
peculiarly within the scope Of the power of
courts OF equity.
! Bat be the tact rs il may in regard 10 these
questions, taud the committee would advise
that the state be not committed Ola them at
/ present and conceding for the pursoScS of
thi, occasion, that neither the legislature
nor the courts Of the state have RICH, to
interfere \, this time 10 prevent a mi>appli-
cation Of the trust fund. yet there is RENE.
d.. The state of Illinois is directly iu,ercS-
ted in all that concerns her canal. BY at.
tempting TO execute great system ofin.
trrnal Improvements, our state became in.
volvcd so far that her condition was deem.
ed to be hopeless. She had expended mil.
lions towards the construction, ON the most
magnificent plan, Of the Illinois and Michi-
gan Canal. Money had been lavi>hcd with
ont stint, until the expenditures Of the state.
for this object, had amounted to more than
sufficient to complete the work under ordi.
nary circumstances. Yet it was but a
wreck, aud the Golfers ol the state were ex.
hauSted. Having, under such CircumStan.
ccS, made the transfer of this work, for the
purpose OF securing its completion. aud that
the state might be .nablcdto pay her debts.
II cannot be supposed that she will regard
the operations of tie canal otherwise than
with solicitudc. Aud while your commit.
tee would not now insist that the state has
the present power to dictate as to the man.
agemcut Of the work, they would yet re-.
mark that her opinions and desires should
not be disrcgarhcd. All the expenses are
oh nry.l a, In rnnnl anpNn,t b,s 4,