Cleveland morning leader. [volume] (Cleveland [Ohio]) 1854-1865, 1859-04-11

Tho Law 10 Lease che Public Works.
The State Journal publishes this act of the
late Legislature, and DISCUSSES some Of lie pro-
visions. The law divides the Public Works in
to three sections, which are to be leased at auc.
ton at the State House on the 18th of August
next for five years They are moi to be let un-
less an aggregate rent Of $4,000 is offered, and
unless all the sections are leased. The Journal
says
Section 1, is the Miami and Erie canal, which
is not to be rented for less than 600, The
gross receipts on this canal last year were Sl5S,
655. The contract price for keeping in repair
was Sl5O,OO0. This was supposed an eXtrava-
CANT price, Rs proposals at 100000 were made
by parties equally responsible. Assuming this
to be fair price, and the receipts OF last year
an average, a rent Of $4,000 would leave the
contractors profit of Sl3,755 Taking tne con-
tract price aud the same receipts rs a basis,
would leave a margin of S3l ,245 the other way.
Taking the lowest responsible bids and the ave-
rage receipts Of the last four years as basis,
and this rent would leave the lessees profit of
Sal ,346 year. The contract price would leave
margin the other way of 1858 year. On
this section the essees are required TO deposit
with the Auditor of State security in the bonds
ofthe State or United States to the amount Of
$3.50, for the faithful performance the con-
tract or in personal and real estate security sat
isfactoiy TO tho board, and to be renewed at any
time they may require.
Section, 2, is the Muskingum Improvement,
Ohio Canal, Hooking Canal and the Wslhond-
ing Canal. The minimum rent is Sl5,OO0.-
Gross receipts last wear were sI49,s3l The
contract prices for keeping tlese canals in re-
pair amounted to Sl22, $50. This basis and the
feut would leave margin Ggainst the lessees OF
$1,000 Responsible bids were offered for
these contracts at sos, 1888 This basis would
leave the lessees a profit Of S29,633, year
| The average gross receipts on these canals ioI
the last four years were S202, ,l29. Taking this
as a criterion, the contract price and rent would
leave profit of S64 ,299; or at the lowest re-
sponsble bids offered for this work, profit OF
| SSl ,93I, year. Securities to the amount Of
| S25O,OOO as above stated, are to be deposited
for the faithful performance of the contract on
this section.
The Maumee and Western Reserve Road is
the third section of which the minimum rent is
S4OO The gross receipts last year were S5,-
s45 The contract price for keeping the road
in repair was s5,490. Security required on
this section $4,000. Ten per cent of all tolls
collected on all the sections is to be deposited
with the Auditor of State monthly as addition.
al security, to be returned at the end Of the
year on the certificate of the Board of Public
Works, that the essees have faithfully perform
ed the work
The act provides that the maximum rate Of
tolls charged shall not exceed the prolished toll
sheet of 1859 On this subject the Journal re-
marks
| 1t may be generally understood that the tolls
last year were reduced to what were regarded
as a very low point in order to compete with
the ruinous rates at which railroads are carry
! ing freight We have examined the toll sheets
| of 1858 and 1852 aud compared the rates on
the principal articles transported on the canals.
| On tifty five Of these, which comprise the most
| important items, the reduction by the rate OF
1859, is fifty per cent Selecting smaller
number of the most important articles, the re-
duction is still greater.
This was certainly grave mistake on the
part of the Legislature. The only necessity for
any Limitation at all was to prevent impostions
at those places on the canals where there is no
railroad competition. That competition would
force the lessees to maintain low tolls; but
rate which the board OF public works had just
adopted in order to meet competition, that if
kept up, must soon prove ruinOus to the rail
road interest, is fixed as the maximum limits
for the lesseos for five year, Ono dollar ton
would only be a fair ratt~oI toll from Lake to
River; and it is not yet fully shown that railroads
can compete in carrying freight even at this
rate, after their financial shifts have been eX-
hausted; but to carry on this desperate compe-
ton, the board have reduced the tolls to from
Earfu fn Rftv cents a ton on the most important
aaln -
mum rate that the lessees may charge for five
years.
Their idea seems to have been to secure the
benefits of low tolls. But they have fixed, as a
maximum, rate that will require double the
business of last year to produce the same reVe-
nue. Whether low tolls will cause so great an
increase, is an experiment that lessees may not
be disposed to try at their own cost
We find about the same reduction in tolls on
the other canals on the principal articles, such
as bacon, barley, beef, coffee, corn, fish, flour,
mOlasses nails oats, oil cake, oil, pork, salt to-
bacco, wheat and whisky, averaging about fifty
per cent of the rates of 1858.
Those who. wish to lease, will have some op.
portunity to see the effect Of this experiment
on the revenues of tue canals before the letting
1t could not be expected that any would try 1t
at their own risk.
Should this reduction of fifty per cent. in
tolls result in a serious loss of revenue, it seems
not very probable that the canals will be leased.
Then what remains to be donel The act pro-
vides that in such a case repairs shall continue
under the direction of the Board; and apprO-
PIRATES 10 the division of Mr.. Backus S44,- |
O0O to that of Mr.. Martin SAL 500, and to MIR. |
Wadde for the repairs of the Southern di- |
visions of the Ohio Canal, the Muskingum |
improvement, Hooking and Walhondiug Ca
nails, for the half year from the fifteenth of Au-
gust the enormous sum of one thousand dol |
ars!