Raftsman's journal. [volume] (Clearfield, Pa.) 1854-1948, 1859-01-12

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b and Erie Railroad Company should not resell
! the Canals, or any part of them, without the
1 consent of the Governor; and that if a res sale
] were made for greater sum, in the aggregate,
| than SO, 500 900, seventy-hye per centum OF
| the excess should be paid to the Common
| wealth, in the bonds of the purchasers. 1t
was also provided that upon a resale, the
mortgages given by the Sunbury and Erie
| Railroad Company to the Commonwealth,
| upon the Canals, ssshould be cancelled by the
| State Treasurer and surrendered to the CON-
| pany by the Governor, on deposite made by
the said company IN the office of the State
Treasurer, of an equal amount Of the bonds of
their grantees, seeHred by mortgage of the ca
! nal or canals sold as aforesaid with provi-
| sion that no transfer of securities should be
made until the Governor should be satisfied
that the new securities to be given were sufii
cient to protect the'intereSts Of the State; and
| that his written approval of the change should
| be filed in the office of the Secretary of the
| Commonwealth.
Sales were made by the Sunbury and Erie
| Railroad Companey and reported to me, under
/ the oath of the President of the different
lines, as follows: The Upper and Lower
| North Branch Canal, to the North Branch
Canal Company, for 81 100000; the West
Branch and Susquehanna Divisions. to West
Branch and Susquehanna Canal Company, for
$500, 200; the Delaware Division, to the Del
aware Division Canal Company, of Penn'a, for
! Sl.775, 600; in all the sum of So, ,S15 900.
Upon investigation and inquiry, having be-
| come satisfied that these sales were made for
| fair prices, and upon such terms, and to such
persons composing the various purchasing as
| sociations, as to insure the payment of the
purchase money they were severally approved.
After the contract for the sale of the Della
ware Division had been entered into, and my
consceut had been verbally given, and ST5, 600
of the purchase money had been actually paid
| Htyt ohoc foI N af haP
tract, and my assent thereto, was informed
that higher price had been offered, by re-
| spUnsible persons, for the canal. But under
| the circumstances, my opinion was that the
| offer came too late and as the Railroad Com
pany considered itself bound to co nsummate
| the agreement by delivery of the deed and
possession of the property to the first purchas-
| ers, could not in good faith, withhold my
assent. The North Branch Canal Company
subsequent to the purchase of that division,
sold that portion of the Canal lying between
| Wikesbarre and Northumberland TO the Wy,
oming Canal Company for the sum OF $9So,0O
On the 18th of Sept, 1858, bonds of the
various companies owning the different canals
secured by mortgages, were in pursuance OF
the act, and by my approval deposited with
| the State Treasurer to the amount of 81, ,000.-
900 and the mortgages on the canals given
| by the Sunbury and Erie Railroad Company
| were cancelled by the State Treasurer, and
surrendered by me to the company in accord
ance with the directions of the law. At the
| same time a settlement was made between the
Commonwealth and the Railroad Company, by
| which the latter paid to the State 40 per cent.
of the proceeds of the re-sale over and
| above the contract price of $500, ,0O0.-
This amounted to S2Sl go, aud was paid IN
the following manner, viz: Bonds OF the
| Wyoming Canal Company, secured by mort
| gage the canal from WilkeSbarre to North
cumberland, payable in twenty years with in
terest at six per cent. payable semi-annually
S2Sl 900; cash $50; total S2S1 ,250.
These bonds are we'll secured, and the ac
cruing interest and principal, when due, viii
doubtless be promptly paid.
/ From information of 4 reliable character
| recently communicated to me by the President
of the Sunbury and Erie Railroad Company
| it appears that the prospects of an early COM
pleiton of that public highway are very encour-
| ageing. a large amount of work has been
| done on the line of the road during the past
| season, and at this time, very considerable
portion of the road are graded and rapidly APP
| preaching completion. 1t is the opinion of the
| President of the company that within two
| years the work win be entirely finished, so
that cars Will be running directly from the
city of Philadelphia to the harbor of Erie.
When this great enterprise shall be consul
mated, and the desire of IFS friends finally ac-
compiShed, the payment of the $3,5O0,0O0 OF
mortgage bonds, which the State has received
| IN exchange IOr Inc Canals. Will
| bly, he we'll secured-whilst the railroad, itself,
| will prove of incaleulable advantage to our
| great commercial emporium well as to the
important, but long neglected region thi ough
which it passes. Its construction will undoubt-
edy add to the value of the real estate of the
Commonwealth many times its cost, develope
and bring into use the rich resources of a
country Which have hitherto remained as they
| were layisby strewn by the hand of nature.
| | have an abiding confidence that the result
| will abundantly prove the wisdom of the mea-
| sure which, while it guaranteed the compile
ton of one of the greatest improvements ever
projected in the Commonwealth, it, at the
same timo, divorced the State from the un-
profitable and demoralzng management OF
her railroads and canals.
Whatever difference of opinion may, at any
time, have been entertained in regard to the
propriety of the details of the legislation au-
thorzing the sale of the main line, or the
branches, it can scarcely be doubted that the
| public welfare Will, in every respect, be vastly
promoted by the transfer Of the management
of the public works from the State to Individ-
| ual owners.
The short experience that we have had al
ready, proves conclusyely that the Common
wealth is greatly the gamer, in financial
| point of view, and it has been equally demon
strated that the people at large have been as
well, if not better, accommodated, by the
| change.
! 1t would, in my judgement, be public Ca
lamity. if, by the happening of any contin-
/ gency the Commonwealth should be constrain.
ed to again become the owner, and resume the
management of any portion of the public i'm.
provements.
The power of the General Assembly to pas:
the Act of the 2lst of April, 1858, relative
to the sale of the State canals was questioned
before the Supreme Court of the State, since
the transfer of the Canals; and, after full ar
gument, the Constitutionality of the Act was