New-York daily tribune., 1851-07-15
Oonstitutionality of the Canal Law-Opinion
OF Chief Justice Bronson.

At the request Gov. Hunt have answered the
question whether the Act 10 provide for the COM
pleton Of the Hrie Canal Enlargement and the
Genesee and Black RIVER Canals" passed July 10,
1851 is Constitutional As the act IS clearly within
the general scope OF Legislative power the only
inauiry will be whether II violates any provision of
The Constitution. The seventh or financial article of
the Constitution provides that certain sums out of
the revenues OF the State Canals shall be set apar,
IN each fiscal year as Sinking Funds to pay the
interest and redeem the principal OF the Canal ana
General Fund Debt.
Section lst and I'd. Another sum Is directed 70 De
paid out Of the Surplus Revenues OF the Canals IN
each wear 10 de,ray the necessary expenses OF the
State And the remainder OF the revenues OF the
said Canals shall each fiscal year be applied IN
such manner the Legislature shall clrect 10 the
completion Of the Enc Canal Enlargement, and Cen
esee Valley and Black River Canals, until the sdld
Canal shall be completed"
SEC 8 Should the work on the canals progress no
faster than il be paid for from these redhdeIso oI
canal revenues as they accrue, IL VIII require IL OF
IS wears TO complete the public WORKS by tne act
IN que stion 1t is proposed to anticipate the receipt OF
the revenues. and apply them IN such way tndt the
canals may be completed within three or tour years
To that end the Controller is directed TO prepare ana
sell canal revenue certificates 10 the amount Oh
~ 0OC 0C0 which certificates Will cn,tle the holders
70 the amount specified IN them, with interest out Oi
the canal revenues applicable TO TINS 0Dect when
received Such OF the canal revenues as may accrue
in the wears 1851 1882 1853 and 1854 together with
the moneys 10 be eNed on the sale OF certificates,
are to be applied 10 the completion oil the canas
and such of the canal revenues as may accrue aieT
the close of the fiscal year 1854 the earlier COM
pleton OF the canals, are TO constitute separate
fund Tor the payment OF interest and the redemption
or purchase of the certificates. Ihe sale OF the cer
tGcaes for Their amount in money, and the apphcd-
non of the 10 the competition OF the canals,
will not constitute State Debt within the meaning
Of the Constitution.
SIC 10. H. l2--The holders Of the certificates will
be entitled TO payment out of the canal revenues,
which the constitution has appropriated to tins OBJ
Iect the revenues prove sufficient and not In any
other way from any other source Whatever ne
State is under no general obligation to pay, ana
assumes duty beyond that Of receiving and hand
ing the money. II says 20 men OF capital give
us the money now and you shall have the revenues
when they come to hand. The transaction amounts
10 sale Of revenues 10 be received IN future without
any guarantee undertaking on the part OF he Stae
beyond the implied obligation to discharge Win
kdelty the trust duty OF receiving the revenues as
they come In, and passing them over 10 me holiers
OF The certificates II is expressly provided by the
act that "The State shall IN no event be liable TO
make up any deficiency OF revenues, OF 10 TeIeem
the canal revenue certificates IN any other manner
than out OF the canal revenues and Tor more dDun-
dant caution ii Is added that The certificates to be
issued under TINS Act shall In no event or contln-
gency be 30 construed TO create any deOt or la
biiy against the State the people thereof, within
the meaning OF H. art I, OF the Constitution
As the state IS under no obligation to repay the
which will be received on the sale OF the GER
nfcates, 1t Is abuse OF language to say that Will
assumed OF recev ing aud paying over the money TO
those who own Il, is not debt within the meaning
OF the G, institution Such a trustee never becomes
debt,r tO the "csstn trust until he s cllargea
he with breach of duty. II the State, af er selling
the Canal revenues. should receive ana apply them
~ its own use, instead OF passing them over 10 the
holders OF certificates II would tnen become adeotor
To the extent OF Its breach of duty But so long as
there wan, OF fidelity on the part of the trustee
there l. no debt III the OF that term as used III
the Constitution.
The State executes a trust of similar character
undcr the General Banking Law, by holding the
stocks and mortgages which are deposte win the
Controller for the security OF bill holders receiving
money upon these securities and paying II over 10
those who may be entitled to H.
No one has ever supposed that the state became
debtor within the prohibition of the Constitution 10y
assuming such trust. and nothing short OF breach
Of duty by approprlatng the money to ITS own use
could change the nature of the obligation irom
tTust to debt
II this should be regarded as pledge or mortgage
instead OF an absolute sale OF the canal revenue,
there would still be debt wltnln the meaning oi
the constitution.
The certifcate holders are referred TO the fund or
thing pledged. and to that only for payment The
State not only omlts to bind usel but II declares
expressly that It VIII "in event oe liable to make
up any deficiency OF revenue or to redeem the canal
revenue certificates IN any other manner than out OF
the canal revenues" When the owner pledges or
mortgages his property for sum of money, he mas
M effect parted with much OF ms estate as is equa
n value ~ the amount received but II ne not only
omits promise TO pay, hut expressly declares tla'
he Will be under no such oDllgulOh IL Is I'M
possible to maintain that he has contracted a
debt The constitution speaks of debt IN the
sense OF an obll ation To pay for sum of money,
or which may either directly or indirectly orlng
burden upon the people IN the form of taxation
This is abundantiy proved by the history OF the
times and the language Of the instrument ii the
State should sell peGge or mortgage all us property
ana revenues of every description without any oOu-
cation 10 paw there would be no debt The proper
" and revenues would be gone either wholly or In
part, and the transaction might be open to other
objections. but there would be no debt. II is SAID
that q State debt is never anything more than an
agreement to pay out OF the public property or re-
venues, because nothing else could be reached out
State debt is more than that II Is an obligation 10
paw although there may be neither property nor re-
venue. II eniorces the duty of levymg taxes, II need
be- to satisfy the demand IN the case OF an lndlvldu
al debtor-nohng but his property or income can be
reached, aud Yet though he may leave neither pro-
perry income, the debt Will remain. Whether
there be debt or not, does not depend upon the
means OF pay ing but upon the duty or ohigation 10
paw. THIS measure We are considering creates no
such duty or obligation. and whether the certlhcate
holders are paid or not, the State VII never be
bound over legally or Cqutably 10 levy taxes anu
no tuIden can lail on them. -
Blythe Constitution the revenues are to he applied
10 tue completion OF the Canal III Suth manner as
the Legislature shall direct The language Is general
and 10 tnc ludes every way means of the apphca
ton which ialry attans the object IN view. The
whole referred 10 the direction OF the Legislature
The question not therefore, whether the best mode
has been adopted, but whether the end can be al
tanned in the manner which the Legislature has
prescribed. On this point there IL not much room
for doubt By the act IN question the Legislature
proposes anticipate the receipt of the revenues by
transferring them to persons for an equal amount IN
ready money, and to apply the ayalS to the compile.
ton of the canals Whenthis has been accomplished
Will be difficult deny that the revenues have been
applied TO their intended use. The manner OF
denying II may be Impohtlc II may be one winch
was not thought of by the Cconvenuon, but stu,
It Is among the public means OF applying the
revenue to the completion Of the Canal. the ConStl-
futon has not been violated The validity of 4 law
does not depend upon the policy or mpohcy OF max
mg n, ana often heppcns that laws ant consutu
tons operate IN ways which were never thought Of
by those who framed them. II Is said that the Canal
revenues canno, be anticipated and applied IN the
way proposed oy thus act, because the words OF the