The star of the north. [volume] (Bloomsburg, Pa.) 1849-1866, 1858-03-10
REPORT OF THE MINORITY
OF THE
COMMITTEE OF WAYS AND MEANS,
ON THE
BILL FOR THE SALE OF THE STATE CANALS,
Read In the House February 25, 1853.

DIM rUh HE MALE vi luE s1hl IL JHahLS,
Read tn The House February 25, 1853.
Mr.. Turner, from the committee of Ways
and Means, submitted the following report ::
The undersigned, a minority of the Com.
mittee Of Ways and Means, upon the con-
sideratien and report by said committee of
the bill ca "An Act fos the sale of the
State Canals" feels compelled by sense
of duty to submit TO the House the follow
ing, as the views of the minority of said
committee:
In submitting these views, the minority
take occasion TO express regret that the COM
mittee should disagree upon bill OF SO
much magnitude and importance to the peo-
pie of Pennsylvania.
The bill proposes and provides for the
transfer by the Governor, of all the State
Canals to the Sunbury and Erie railroad
company, and 10 no other company or per-
sons.
By The first section, the Governor is re.
quired TO sell the said Sunbury and Erie
railroad company, within thirty days, if they
agree TO buy the public works of the Com.
monwealth, for the sum of three millions
four hundred thousand dollars.
Second section provides for the issuing of
,seven millioYr of dollars of bonds, to be
secured by a mortgage TO trustees-three
and a half millions of which bonds are to
be received as payment in full for the canals
by the State.
Third section provides for mortgages for
two millions on the canals, and provides
that these mortgages shall be exchanged by
the State for others; and, finally, when cer-
tain specified stages of progress in the
making Of the railroad are attained, shall be
wholly cancelled.
Fourth section provides the time and
manner of the transfer of the canals 10 the
company by the Governor.
Fifth section provides for the compauy's
enjoyment Of the works, and that they may
sell and lease them.
Sixth section prov des for the delivery of
the three and half millions of bonds, de-
posted by the company with the State, back
to the ccrnPzny again.
Seventh section provides for the collect
ing of mortgages, if the interest is not paid
on the bonds.
Eighth section provides that the proceeds
of sale shall go into the sinking fund.- and
the
Ninth section provides for the keeping
Up of the canals.
1t will be perceived, from the provisions
of the bill, as proposed 10 the House by the
majority of the committee, that the propos-
ed sale, when divested to legal form and ver-
biage, in simple transfer of all the State
canals to the Sunbury and Erie railroad
company, for three millions and half OF
+ the five per cent. bonds of said company
f 1t is true, there is no issue of seven mill.
ions OF the bonds OF the company provided
for, and mortgage of two millions on the
sold canals also provided for; but the sec
ond section of the bill provides that ''the
: State Treasurer shall receive from the said
company three millions five hundred thou.
sand dollars of said bonds, in settlement foI
, the purchase money of the said canals and
other property" which provision plainly
and clearly discharges all liens, whether
t mortgage or otherwise, in favor of the
| State.
t The terms of the sale or transfer being
clear TO the minority of your committee
e and readily apprehended by this House, the
, interest of the State under the bill ought tc
become the subject of the serious consider
f alton.
Of the terms of the sale, the minority oI
the committee have 10 say that the price
fixed in the bill is wholly inadequate, mas.
much as other solvent parties propose much
larger sums for the said public works.
The purchase 1osney the company do moi
propose TO pay down, but TO secure it, as
before stated, by an issue and payment O
, of bonds. The safety and solvency of the
securities 10 be taken, therefore, become.
properly subject of consideration and in
quiry.
AS before stated by the minority of you
committee, the company propose TO pay il
: their bonds or notes 10 the amount of three
and half millions, which amount will be
held by the State conjointly with other par
ties holding like amoun. secured unde
the same mortgage.
What mortgages precede this, and wha
r the financial condition of the company is
t the minority of your committe cannot state
for want of information upon these points
If the company, however, are free from
debt, and their road unincumbered by mort
E gage, these bonds may be made to realiz,
: something to,the State; but if, upon tn,
It contrary, the road is already mor,gaged, the
9 bonds must rate even lower than the count
: less millions of bonds of similar kind
: with which the entire country is flooded, a
: prices frightfully disproportioned TO thei
. represented value, and the State can expec
f TO realize from the bonds but a portion o
e what they are taken for.
: This is one of the aspects in which tn
=, transaction proposed to be consummated b,
d this bill has presented Itself to the minority
S OF your committee, causing to not ohiy hes
: itate about approving the bill, but TO dissen
0 from an affirmative report.
0 Why an issue of three and half millions
a of bonds by the company, over and abov,