The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1856-01-20

debt, except il common with all the taxable proper
ty Of the State, unless the necessity Of such tax Is
a NECESSITY is created for . resort to other
means for the final extinction OF the debts
Of the canals than their own revenues, then
burthen, as a just and necessary consequence of
their acts. Taxation upon the whole properly of
the State, in any form for the liquidation OF the Ca
that their revenue will prove unequal 10 its lquida
tion--an assumption entirely at variance with all
the experience Of the past md prospects Of the pre-
finally and entirely hquidated can be of no
particular moment, SO long as their revenue
Is sufficient to preserve intact the faith
Of the. State, which, has been pledged
and expenses as to put beyond reasonable contingent
cy the fact of its final liquidation from that sour,e
Posterity even could not reasonably complain at re-
ceiving such legacy as the canal system of the
State though subject to some Of the payment of the
cost Of its construction, SO long its revenue was
ample for that purpose and yet it is not posterity
but the present generation that are to witness its
final extinction if any confidence can be placed in
the future being as productive as the past If these
positions are sound and defensible, as they are be-
leved to be- the only question to be settled in order
70 determine the propriety and justice of imposing
tolls upon property transported upon railroads Is
have they by their action under the privileges
granted by their charter rendered resort to taxa
ton tor the liquidation OF the canal debt necessary
III ID SHOWN III Hnotler report under the
head of suffciency Of Canal Revenue to Pay the
Canal Debt" that even with revenue equal only
to that OF the last fiscal year, and without any fur
ther increase thereof than Ia sufficient TO meet the in
terest OF the "a 100000 yet to be borrowed, aud
without any reduction Of expenditures for collec.
ton, superintendent and repairs the entire debt
with its authorised additions, may be cancelled in
less than twentythree years; and unless the facts
and the reasoning under that head are entirely
faacious, resort to taxation for the payment Of
the Canal debt Is necessary, the revenue or the
canals being sufficient for that purpose. That the
railroads have carried freight, which, had they not
been allowed to carry 1t, would have gone by canal
and paid toll to the State, s unquestionable; but
whether they have taken more freight from the
canal than they have caused to be brought to and
transported upon it, is question not SO easy of So
luton, and must to very great extent be q matter
Of conjecture, from want OF facts from which 10
determine it, BE this as it may, it is fairly sssum.
able that orwardes of freight do not cause it to be
transported by railroad merely mainly that the
revenue OF the company earring it may be enhanced
nor yet from hostility to the canal navigation and
with design to impair its revenues but because it
is believed to be for the interest Of the shipper the
producer or consumer or all combined and that the
public so far as they resort to that method of trans
portati0n, do for the reason that they are bene-
fitted theieb,,the same reason that prevails when
canals instead of railroads are res0rted to for the
transportation Of property From all the inyestiga
ton that the Auditor has been able to make of this
question, the conclusion at which he has arrived is
that there is no such necessity existing which has
Jeen created by the action Of railroad corporations
as to Justify the imposition Of tolls upon property
transported upon railroads for the benefit OF the
canal fund. Whether any necessity exists for snch
an imposition for the benefit Of the general fund
is question belonging to the Comptroller and
Tot to the Auditor to discuss. The main and
strongest position for the imposition of tolls upon
property transported upon railroads for the benefit
of the Canal Fund is understood to be that the con.
stitution has imposed npon that fund the duty Of
rayi certain sums within a given period, which,
with its present revenue, it is unable to do; and
diyerts from the canal property that would be other
vile carried upon it, and pays tolls to the State such
p-operty should be subjected to the payment IF toll
the same as though 1t went by canal. Waving all
ty transported by railroad would be carried by the
canals ii not BY railroad, and all the difficulty of
discriminating upon this principle as to what should
&c subject TO Toll and what exempt, also the nquir
ing whether the railroads are anywise in fault for
these constitutional requisitions it is respectfully
submitted that this argument OverloOks and ignores
the TACT that the constitution has itself provided
occur, ard therefore the imposition OF tolls upon
railroad transportation is departure from the
means provided by itself. Should competitions by
railroads thereby diyertng freight from the canals,
he carried to such an extent at any period in the
future as TO cause the canal revenue to be
reduced below point sufficient to meet expenses
and interest, and furnish reasonable surplus for
sinking fund to extinguish the debt the necessity
will then have arisen by railroad action for the adop.
tion of protective measures, and upon principles
already stated, the Auditor would in such an event
rnhesitatingly recommend the imposition Of such
tolls upon property transported upon railroads as
should be sufficient to secure an amount Of revenue
adequate to the extinction of the debt in reasona-
bic period; but to impose such tolls in authorization
OF such necessity, under circumstances SO strongly
indicating the unlikeihood Of its occurrence can be
neither wise nor just. To merit and acquire By the
imposition Of unnecessary toll upon the transporta
ton OF property, reputation similar to that now
borne by our sister State of New Jersey caused and
.Srrdh tyn GiYr1Iup
ried upon her railroads. is not such Condition as
the Auditor can recommend in this report.
sUFFiCiENcf OF THE CANAL REVENUE TO PAY THE
CANAL DEBT.
The canal debt, paying interest on the 3Oth Sept.
1894, Qneuding Sl,jt0000 of canal revenue certif-
cates,) VAS sls53l ,l09 1G-hearing an annual in
teiest OF $l0i9790 30 OF this debt 50 ,sI4, SO 81
matnred in the fiscal year ending Sept 80 1865 and
during tho same year new loans were issued for
So $3.50 00e-leaving the entire canal debt subject to
interest on The Goth Sept 1856, at sl9G6G, 289 ST.
tie H. interest upon which is 81 O7es22 81 per annun
Tie revenue OF the last fiscal year was $263979o IL
Cost Of collection, superintendcncea and
ifteiesturon canal debt. s676,s 2s ST.. 2.ose5il 60
Surplus over interest ard expenses, APP
plcatc 10 payment of debt. ... -$573,l57 40
Ibis sum, am TALLY set apart and invested for ac-
emulation, at on interest Of five per cent per an
Nun added quarterly, will in nineteen years aud
three quarters amount TO sum more than sufficient
to extingnsh the present Canal debt If to the debt
Of $4,000 $50 50 there be added the sum Of
sa5oo 600, remaining or the 30th of September last.
to he borrowed under Sec 3, Art. Of constitution
as amended it will make an aggregate of 1874, 1885,.
$50 So, and the tine requisite for an annual invest
ment OF s673,l77 a., at quarterly interest Of five
Fer cent per annum to accumulate SO as to ex
tDguish it will be extended TO twenty-five years and
quarter-at which time the accumulated sum
would exceed the debt in the Of sis2 ISL Gl as
shown by the fol owing computation:-
In this computation 1t is assumed that the revenue
OF the rrcfent fiscal land for fufurai xviN
exceed that of the last fiscal year to an amount
equal to the interest on the additional
loans Of s45O0,O00. so as at all times to
leave net revenue or surplus, after paying
interest and cost Of collection superintendent and
repairs, equal to that OF the last fiscal year. That this
assumption is well founded Is shown in another
part Of this report where the revenue of the present