Democrat and sentinel. [volume] (Ebensburg, Pa.) 1853-1866, 1856-04-30
EBENsBURG, April 80, 1866.
fbe Maill Tine.
Sale of the Public Works--0pinion Of the
Canal Commissioners

Caual commissioners.
A bill is now pending in the Legislature
| entitled " An Act to authorize the sale of the
! Main line of the Public Works" On the
third instant, resolution passed the House
requesting the Canal Commissioners to give
their opinion of the propriety of the passage
of the bill, as well as of the policy" of the
measure In an able and lengthy reply, pre-
sented to the House few days since, the
Commissioners entirely disapprove of the sale
of the Public Works, especially on the terms
proposed by the bill in question, We regret
that we hsye not room to give the eomnu- u
cation offhe Canal Board in full, as it is a
paper VIII should be carefully read and
/ poBdere<. By every taxSss15er III sae Gss.aaap
wealth. By the annexed synopsis, however,
our readers will fully learn their views on the
subject. and the reasons by which they are
supported.
The Commissioners say:
The main line of the public Improvements,
| extending from Philadelphia to Pittsburg, cost
| in their construction, the sum Of SIC, ,472, :
634, as appears by the report of the Auditor
General and State Treasurer, communicated
| to the Legislature in 1854, to which must be
added the tonnage tax paid by the Pennsyl-
yania railroad company, the amount of which,
last year, represented capital of S3, 000,-
000
1t is now proposed to dispose of this capi-
tai of $40, 472, S34 to the Sunbury and Erie
rail road company for the sum of s. $780,
000
a consideration of the bill now before the
House, when viewed cas- measure of State
policy" naturally gives rise to the questions
Is the price proposed to be paid all ample
compensation for the property and tax to be
sold? Are the securities for the payment of
tho purchase money such as prudent regard
for the safety of the public finances would
justify the Legislature in accepting? Would
the taxpayers be relieved of any portion of
the present burthen by the sale !? Is the mon
etary condition of the treasury at so low an
ebb as to warrant so great sacrifice of in
vested capital?
The Board are of opinion, that a fair inter-
probation of the provisions of the bill must
give negative answer to each of these i'm
portant questions.
The first question: Is the price proposed
to be paid an ample compensation for the pro-
perty and tar to be sold ?"-is ably discussed
and fully answered by the Commissioners
They say:
To determine this question, the operations
on the main line for the past fiscal year, may
properly be assumed as safe and proper critic
rion. The receipts on the main line in 1855,
were as follows:
Columbia railroad, 1885,, ,059 80
Portage railroad, 1S, $50 90
Main line of canal, 243 ,007 II
S1,118,217 rs
Tonnage tax proposed to be
sold, 1888 80
Total revenue main line, 1861 IA
Deduct expenditures, 900, 1898 ~
Net revenue, 1856, ,S47 AZ
Showing an interest of six per cent. on
So, Al, ,457, without taking into view the
revenue due, but not credited, to the Eastern
division. In the collection of tolls, it has
been the practice to regard the works as one
Improvement Under this practice, some of
the divisions are credited with the whole of
the tolls received at their offices, although tue
freight passes over other divisions which do
not receive credit for any portion of such
tolls. The Eastern division is sufferer from
this rule. All the coal, lumber and other
freights from the Susquehanna and the North
and West Branch canals, destined for Colum-
bla or intermediate points, pay the whole toll
at the Offices on those lines, and pass over the
six miles, without that division receiving cred
it for one cent of these tolls. The portion of
tolls due from this source to the Eastern d.
vision for 1855, has been estimated at $780,
600, bat may be safely assumed at $60, 900, |
being an interest at six per cent. on another
81 900, 900.
1t is thus shown that the main line and the |
tonnage tax en- the Pennsylvania railroad,
paid into the Treasury, during the last year, |
a dividend of six per cent. On capital of /
a7 AL ,457.
But this Is not the most favorable view of /
the value of the property and tax proposed to
be purchased BY the Sunbury and Erie rail |
road company. The future promises large |
ly increased revenue from this source. TIE |
tonnage tax on the Pennsylvania railroad, for I
the last year, amounted to S17S, ,523 80, be- /
ing within very small fraction of the inter-
est at six per cent. of So, 600, 600. The |
road has yet but single continuous track
the other track being now in the course of
Its business is yet in its infan-
cy. From its location, and its connections
with all the great avenues leading to the trade
Of the west, there must ultimately be no 9TH
er limit TO its tonnage but that prescribed by
its capacity to transport. Theimprovement
Of the Ohio river, which will be accomplish
ed at no very remote day, will throw upon its
western terminus, at Pittsburg an additional
amount of freight, more than equalling that
which it now receives from all its western con-
nections. 1t is therefore certain that the tax
Oh its tonnage will continue annually to in
,rease-that, before the last instalment will
fall due under the House bill, the revenues
derived from that source will be doubled
and that the value of that tax, which is now
S3. 600 900, will, by that time, be swellcd to