The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1860-01-11

sudL VIC Sdmo OUJcCtlOu 6ppuCs, juSV Go
'orcibly, to every mode of taxing bonds
given for money loaned to the State. 1t
is very serious, and, in my judgment,
40 insuperable objection, anless the right
Of taxation be reserved on the face of the
bonds when issued. Whether bonds
bearing such reservations will find takers,
can only be determined by trial. That
they will not, is more than probable; and
if they will not, it is certain that the tax
alton of State bonds is alike impolitic and
unjust.
1 Recommend, therefore, such lsgisla-
tion as will give the suggested discretion
to the Commissioner to fix beyond
liability to alteration the rate of in
terest, and secure the control, reduction
and final payment of the debt, at the
earliest time aud in the most economa
ical mode.
The two great lines of canal, including
the Wabash and Erie, with their feeders.
cost $I2,1l0,120; the other canals, with
the Muskinsum Improvements, and the
Western Reserve and Maumee Road, cost,
$3,226,l12, and the amount subscribed
to turnpike and railroad companies, was
So, ,226.e9o making an aggregate cost of
SIS, ,8e3,922.
For q number of years, the net reve-
nues derived from these works. though
never sufficient to pay the cost Of the in-
vestment, were very considerable. The
competition Of railroads, however, soon
deprived them of great part of the
business on which reliance had been pla.
ced for increase, and at length marked
decline took place. Within the last few
years the outlay for repairs and improve
ments has exceeded the income. The
real deficiency last year, after deducting
the extraordinary disbursements directed
by the Legislature, was not large; but
there is little room for hope that it will
be less hereafter, while there is much
ground for apprehension that it. win be
greater. It will certainly be greater, un-
less the introducrtn of steam navigation,
or other circumstances now unforeseen,
shall enable the canals to sustain, at less
disadvantage, the railroad competition.
The cost of these works, however, has
doubtless been repaid to the State in the
increased value of lands in the counties
through which they extend. And this
reconsideration may well abate the censures
which the debt contracted for their con-
struction is apt to provoke; while it sug-
gests caution and prudence in dealing with
interests so important as are involved in
their disposal.
1 have heretofore expressed the opinion
that they should not be retained under
State managements, if a sale can be affec-
ted at a reasonable price, and under such
restrictions and guarantees as will secure
to the people the benefits of transporta-
tiou originally contemplated That opin-
ion remains unchanged. With econom.
ical management in private hands, the
canals can probably be made sufficiently
| productive to warrant the investment pl
a considerable sum in their purchase
The reduction of the debt by the same
amount, and relief from taxation for in
terest. reccommend the sale to the people
at large, while the suggested restriction.
and guarantees will prevent any loss or in
convenience to the inhabitants of tn,
counties.
| The State stocks in turnpikes and rail
roads should not be included in any sale
unless the interest on the price will equa
the revenue now derived from them.
recommend that authority be given to tn
Governor to appoint an agent with ampl
powers to ascertain the condition of al
companies in which the State holds stock
The productiveness of these investment
would, I have no doubt, be- greatly en-
hanced by such on investigation.
Should you regard sale of the Canal
as inexpedient. and, in any case, so lon
, as they remain under State management
the propriety of strict compliance, in thei
administration, with the directions of tn
!, Constitution, will not be questioned.
: The separation of them into several divi
sions, and the assignment of each divisio
to the control of a single member of th
Board of Public Works, Independents, i
s most important respects, of the Board il
self seems to me not only inexpedient bu
t of more than doubtful constitutionality.-
! I recommend, therefore, such modifes
I tions of the act of the last General Assem-
!. bly, on this subject as will secure to th
). whole Board the control of the Publ
. Works which the Constitution commitst
4 its superintendent. I also recommen
e the restoration of that provision of the az
q Of 1854 BY which the Governor, with tt
q advice and consent of the Senate is q,
n thorized to appoint collectors aud inspet
r tors; and renew the recommendatio
;. addressed to your predecessors, of mol
c stringent provisions regulating the settl
a ment of accounts for repairs aad other e,
r penses on the canals Under the law,
IS it now stands, there is too much room f
: abuse, to the serious prejudice of the pul
= lie interests.
e During the year 1858, as was fully e;
70 planned to your predecessors, the sum
It $l6.333 was advanced by the Treasur
1t of State, upon my advice, concurring vii
n