The New York herald., 1869-01-21
THE NEW YORK CANALS.
Report Of Auditor james A. Bell.

Report tI fCOlt0r Jut'tt NJ Btifs~
The state Auditor furnishes the Legislature with
his report on the financial condition OF the canal
fund revenues expenditures &c. for the past year.
The following presents an exhibit OF the
CANAL DEBT SINKING FUNDS.
The care with which our present constitution
guards the State Treasury IL OF its valua-
bic provisions. The seventh article OF that nstru-
mrnt is admirably framed TO check the debt
creating spirit Of our people. The twelfth section
provides that, except 10 meet casual defciis
or failures IN revenues to 0 limited amount
or 10 repel invasion, no debt shall be
created unless the law authorizing tile same shall
provide for leyying direct annual tax sufficient 10
pay the interest ami redeem the principal thereof in
eighteen years. The yearly sums thus raised and
set apart constitute sinking fund for the debt
The canaldebts been contracted az different Pc
rods and under different circumstances.
Four separate and distinct sinking funds have
been provided, under az many different provisions u
the constitution for the payment OF these debts
Three o. these sinking funds are dependent upon
the surplus revenues OF the canals for which they
were established.
The means required TO supply the fourth ia derived
from taxation.
Tae order and priority in which these sinking
funds perform tnetr functions are a. follows
]. TIC sinking fund to pay the canal debt. under
section one Of article seven, requfeen annual con.
trDuto1 rom the canal surplus revenues or
sl,Fgoelo. The contribution Of Both September last
made tais sinking fund sufficient 20 fully discharge
its remaining obligations No further contributions
70 this fund Will be required. The functions OF tlis
sinking fund Will, IN futute be 10 hold the money
ana temporary investments ami apply the same 10
the payment OK the interest aud principal Of The
outstanding canal debt OF ls4s Il becomes due ~
10 purchase and cancel the stock a. fast the
can be obtained.
The condition Of tins fund at the close OF the last
fsea year was as follows
Balance on ham september 30, lsGs... a., ,31e 0s3
The outstanding stock debt FOR which this
und y chareea0le e.................... 2,2io. 800
And natures As follOws:-
sixes, July 4. 1867 e7;.:...'......... &s0
Fives. October l. lsos..........., IH4N0D
Flyes. January !, is'4............ 2Zs0 so
Total. .......... ......... AZ 850s0u
since september 50 there has been paid on
the atOye deOt........... s2,lso
Leaving a balance now outstanding o. sI.34s $50
2. The sinking fund for the general fund debt re-.
qu!red an annual contribution from the canal rev.
enles , q sSsoDo0 Y pay ne G nseTs, on & ssd DEBT
section one. snail be sufficient 70 pay that debt;
thereafter tue sum Of ti,5oo,ooO.
~ has been shown, the Contributions 20 me fund.-
under section one are now sufficient 70 pay that
therefore the sufn " ti,5yo.0D0 must hereafter be
contributed annually from the canal revenues totEe
general fund debt sinking fund until sum sufficient
shall nave accumulated 70 pay the principal aud ~.
terest Of that debt
inc management Of tils DEBT ~ IN the charge 0l
Tic annual contributions thereto from canal reye.
nues ait paid 10 mat occr who reports the balance
dac thereon S0th september, 1885. 81, I0s, 500
me balance ia the general fuDd debt sink-
Ing iund after payment OF the $4,000
rom surplus Of canal revenues due 5Jth
september, ISIS, and since paiI was..... i53,liS
Balance 81 debt 70 be paid from canal
%g.9n4,tfl
3. Inc sinking fund established under secton
tnier i0r the payment of tue enlargement debt, re-
qures an annual contribution oi si,llo24A
on account OF the prior clans upon them the
canal revenues nave fOr several years been insult
clent 10 make fun or IN some years even a partial
contribution 10 this sinking fund.
These Deficiencies IN tue aggregate amount TO
ss.1sI.s4A.
A pcriiyn Of this deficiency, namely, 3s,38I,77G