New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1857-01-15

TIE r0DstyncpCD VI fOc cHo"o NV
,slvsy. ,r.fic, the annual rereip,e from which fs
.,rs,d The orisipsl Coz. OF The E,N Canal. .
~ The imposition Of ,cns on n ght conveyed by rail-
,o.ss il NO, REQUIRED To enable the sie 70 sa;sy me
lust CLAIMS upon The Treasury, tnen snou'o no' NC
dcne ,:--;o, - o,r,
But If il appears hs; by railway diversion ana com
n.iiticp the trade ana traffic on the csoss Is sstlouy
impaired ani the revenues 40 cminsheu anu ulN 49,
a. p1t 10 h. sufficient s salts the snnaa charges upon
them, srCh an t1gency must justly iuy TIC "0' VI
In Considering this question should lay entirely
on of view tfe annual sinsl Fund o. s','VU 80
.hich he State receives and csPoses OF ss ua.tee
Tor ;,s creditors and which only be applied 10 me
objects of the trust. 1t IS uravalaole for any oto.I
purpcsa The same remark mey be made IN regard I,
the a. 50 coo sunusl con1i1un1n to tae SINKING unu
of The G, neral Furd debt .u
In this view Of the question il is fnancid slscy
10 saw these tolls not wanted ~ pay me mees On
the new debt Of sl 600 OOO "ohe me present dc
continues The pIoces. OF Borrowing money to pay
the am nal interest will increase that deOt aOout
Sill coo Geo re by the hrst OF January, lo';' INC
bo,t, m Of the loan bag shall not be sooner reached
The canals and railroads of the state NAV be psrts OF
sinoe system of internal improvements, but It by no
me ans follows that when there lie antaSonsm OF interest
batween erent lines Of rsilroad there can be none
between the canals and railroads especially when the
lipee are oil competing.
The relative rights and interest Of all the parties con-
cerred in them must be examined adjusted and dis.
nosed Of as the b. st interests of the whole State and
not OF any particular class OF persons may sren W re-
;tctors of our canals that the cost OF their completion
should be thrown az burden upon the pubic, 10 De
,enoyed by an annual tax. while those who Invested
csnital In railroads with view 10 profitable return,
were mainly recompensed by competing with the State
for TIE legitimate trade and commerce of the canals
CorrobJrative of the ideas thus presented is the
view given by the Auditor Of the position of the Canal
debt which amounts altogether TO $2i,663,2S9, on
which the annual n,eres. is sl3i 1873 Surprising the
annual surplus of 81 100 600 appropriated to the exnc
ton of the old canal debt to bold out (which he does
rot question:, that debt, amounting to si3,%31Ob
will be extingushed or provided for by 1867 But 50
soon as that is accomplished the claim of the General
Fund On the surplus canal revenue rises, under the
Constitution from $3.50 COO annually to 81 100000
annually til .uch time the General Fund debt is
e1,ineuish,d That debt amounted in January last to
N.27564. What it may be in 1867 it would be now
difficult TO say. Supposing it, however, not to be in
creased it may be paid off by 1872 then leaving the
.urpus canal revenue applicable 10 the new enlarge
ment debt, Of eli, eco.
Meanwhile however there is total deficiency OF
means TO pay the interest TO make the annual pro-
vision for the 6empton within eighteen years of the
prpcipal of that debt--a deficiency which, notvth-
star drg loan of $5O0OOO and taxes to the amount Of
$32 500 applied last year to that purpose amounted,
Cd the Seth Of September last 10 $i55,5S. To meet
those charges there will be wanted for the year end
ing the seth of September next sl0O6 1872; and for
the year ending the Goth of September, 1853,
81 les, l69
II ia not supposed, however that the policy will be
adcrted Of borrowing money to invest for sinking
fund but rather that the credit of the Sinking Fund and
ts claim on the surplus canal revenues, 10 default OF
other me ans will be employed as basis of borrow
ing money to pay the loaus they fall due. But,
Al. 10 I.f,n Of naap "a
pa, interest on the Oth Of September next Of $6 49,
one has already occurred (met however out of other
pds of $50 $780, on the 30th of September last. IL
the surplus canal revenue should meet the charges
upon il for the old canal debt and General Fund debt
$1,000 Geo. some relief may be obtained from $SO,OO
of taxes levied under act Of the last session; but
even supposing that whole tax to be 80 applied loan
of $i43 $780, On the credit Of the Sinking Fund, will
still be needed to cover the deficiency of the current
ard the last year; while for the interest (s655,OOO)
to fall due next year, no provision whatever exists
II is some consolation, however, 10 find that, mean
While TIE credit Of the State holds good and that the
loans for the Canal Enlargement have produced an av
erage premium OF upward Of fifteen per cent; whle-a
point, however not referred 10 by the Auditor-the
net revenue of the canals, though no longer able to
meet the heavy charges in the way of debpaying and
Otherwise. hitherto imposed upon il; still h ,ndsomely
exceeds the annual nterest on the total canal debt,
ard for that matter, the entire State debt.
For the current year the Auditor estimates the canal
revenues at 81 $4,000 not more than sufficient to
meet the expenses and the claims Of the old canal
and General Fund debt having moth ing toward the en-
srgement debt, interest or principal, or the other
charges with which the surplus canal revenues
have been saddled.
As 10 the el argement its entire c0st was estimated
in the report Of the State Engineer of last year at sl3
1871. sos 74-an excess of a. 131 1903 "A beyond the
original estimate of 1000 Geo. but more likely to fall
short of the actual than to exceed it. Prob
ably an addition Of s. 500 coo to the original estimate
may with economy cover the whole cost.
To stop the progress ofthe work would be runou
and wasteful bu, to continue it, and TO meet the claim
for land damages and the fifteen per cent held beck
from the sums due the contractors requires an appro
prstior Of a. 500 beyond all the means hitherto pro-
yded The Auditor suggests as available means
applicable to this purpose the following:
Amount Of premiums on loans received up to Sep
TENDER 80 1856 invested in loans on interest at I've
per cent and in the treasury not invested but which
portion of the general balances In the banks draw ar
Ssi R,f an Ia,T. or .Sov. to October s7 % 81
Loan invested in Trust for Hre CsLM enlargement
uIder chsp 1877 Of the Laws Of ls56 including ~
E.tima.d pre%iums on loan. Of sa25ccoo, to be
made for the purposes Of the enlargement, ke, .o.,o
during the Iresent fiscal S'"W
Total. sLboo<S pI
There are however obstacles in the contracts with
some of the Banks and in chap. 800 of the Laws Of
1854 to the application Of part Of the above premium
loans to the purposes Of the enlargement prior 10 the
18th Of April, 1853; but about half million of them
may be made available by the LIST of October next and
the Sinking Fund would probably be in condition to
~ tAaa oppt inya hx