New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-03-22
STATE CANAL FRAUDS.
Aln1IoNs or nnILARs SQUANDERED.


Cl;IPIs ALL WASTED ON NOMINAL REPAIRS
ENORMOUS SUNS THROWN AWAY.
Mr.. CHAIRMAN: The Treasurer of the State,
and ny virtue OF that office. a member Of the Canal
Beard and therefore somewhat familiar with the canal
management. desire to occupy few minutes of your
time With some remarks upon their condition aud
finances speaking the TRUTH regardless of the effect
upon political parties For is time that the people re-
csiVed information not colored by party bias.
Immediately upon the organization OF the new Canal
Board. introduced preamble and resolution which
adopted calling npou the Board OF Canal Commits
recommend provided by law, the canoeua
tou OF certain repair contracts, the Joint product OF
submissive Republican Contracting Board and coinpl-
contractors OF both partiescontracts known
to be excessive and fraudulent by officer OF tne
state. deemed worthy of its denunciation oy the
Constitutional Convention OF 1867. Who doubted lhat
these Commissioners would promptly ana taNoraoiy TO
spOnd. for they had repeatedly denounced 'nomi l"
june 1862 one Of the present Commissioners repre-
sentative OF that body, man OF large experience
and himself a skilltul engineer, IN MS ahhual
report TO the legislature. denounced these contracts
an the grounds that the interests Of the contractors ana
The interests OF the State antagonistc Again in
January 1870 he repeated his objections ana recon-
Iucndcd a law which would allow the contractor 10
surrender voluntarily, and give the commissioners
power through their Recommendation TO the Canal
Board to cancel contracts when for the interests OF the
State The law was passed. and all The contracts at io0
rates erc surrendered hae those at high figures were
Ten IN force Again in 1871 he denounced the contrac-
tors saying "NOne OF them have fully ana faithfuiy
IN all things performed their contracts Again. III
February 1872. when introduced IN the Canal Board
preamble setting forth facts to expenditures,
accompanied by a resolution calling for general canal
investigation the Commissioner seeking to account
for the expenditure, moved, substitute Tor
the preamble the following:
whereas The dilapldated condition of the canals at
she time OF the abrOgatOn OF the contract system nade
necessary further heavy expenditure drawn rom ns
revenues, to put them IN proper nayigaDle order ec
MISREPRESENTATION THE INTERESTS OF CONTRACTORS
But three weeks LATER in reply TO the demand OF the
Canal Board for the cancellation Of these contracts
these Commissioners, by their majority, submitted
long argument upon the relative merits of the supern-
fendent contract systems declined TO recommend
fhe of the remaining contracts aud said, III
defense their action cOntradctng all of their prey-
Gus statements:
II az has been alleged. the banks Of the canal had
fallen iu the prism filled with the deposits Of former
years the tow path down. bridges, locks, aque
dicts other structures become dadated 1t would
business of s6s In view OF such overwhelming testi-
Inony be conceded that whatever may have been
the object, the interests of navigation ana not relmro
their abouton etc, nor the surrender ana caucela-
lion %! tHe several contracts therefor
Thus We md the Board OF Canal Commissioners recon-
lneudiug aw allowing contractors having poor con
tracts to surrender them aud those having profitable
Aud fraudulent contracts to retain them The canals
poor condition until the losing contracts were
surrendered aud when the paying only remained
and their cancellation demanded the canals sud
denly deeper and broader the structures in fine
rep air. thcr general condition emnently satisfao-
tory But the Commissioners finally put upon record
the fact known 10 all canal men, that the canals in
eCod CONF Un tie 1s day Of January 1862 The only
reason that G statements had been made was SIM
ply to relieve parties from their Improbable con-
ttsets enable them 10 realize upon their permanent
the law Of 1870 providing that the Canal
Board should reimburse them for such expenditure.
one Of she Commissioners who luade the strong state
ncut a. 20 the condition OF the canals. into office
IN ls6s a Democrat, succeeding Republican, and.
therefore likely color the picture In favor or the
opposition Again, in January, 1871. the same Commits
suueI Iudes the large tonnage OF 1863 and says;
There have been two of more successful
navigation than the TWO last past" Again. in January
1872 he states the large number OF round trips from Bu
talo 10 NeU-Yor1 and says that navigation has i'm.
moved from year 10 year for the past four years. aud
aiiuCes Go tie large tonnage.
Tho same statements are repeated in 1873. and have
been from time % time confirmed by all the Commission
ers except Commissioner Chapman, wnO in 1871, pro-
Dounctd division in bad order Notwithstanding the
expenditure upon II for years had been arge and pro-
ceeded 10 remedy II by an expenditure oil SOOWO ana
upwards in two years, for ordinary repairs and repair
contracts alone; and 1872 he pronounced 1t In salts
factory condition.
But IN order TO show clearly what must have
been the condition OF the canals IN 1874 let u examine
the ordinary expenditures OF previous years The aver
age cost per mile Of repairs
From 1860 to a sS
From 1864 to 1868. hrs
From 1856 to 1872 l4zo
aud for the fiscal year ending sept 80 1917. 1t reached
SLIP; aud that the canals have at time been I'm
dilapdsted condition is evident from the fact that the
average number OF tons of freight carried was,
From 1860 10 1864. 5OIs52
FROM 1864 to 1868
From 1868 TO 62d5,'4O
or from 1850 1872 the tonnage OF the canals Increased
little over per cent while the tonnage of the rail
roads doubled. showing that not the improved cond
ton OF the canals, but the drppings OF the increased
production OF the country, the Of the in
creased tonnage. Not with low tolls are we
able 20 show increased tonnage that at all reflects
upon the management from 1860 ~ 1864. When labor
was scarce wages material high, the Commissioners
we're able keep the canals In good repair for less than
$500 per mile Yet In 1872 with labor plenty, wages and
mat eria at fair figures the Commissioners expend S7OO
per mile. Why But let US carry the investigation
little further
when I'm 1868 the revenue to the State from tolls
The cost of repairs and ordinary and extra
ordinary collection OF tolls was.......-;.. SOOOOO
% o. .V IN and interest were ... 400 900
The OF repairs and collection OF tolls was l4SoOO
For fiscal years 1870 IL and ~ the average re- 10000
ceipts for tolls and interest deposit were.. 100000
Tine average cost of repairs was ......... $4,000
d"lIs ~, yer. observation-disclosures. 3O79OOO
e cost of repairs ordinary aud extraordinary. 283OOO
Marx the steady OF receipts and proportion
ate increase of expenditures. This does not include
damages elloxed by Canal Appraisers large amounts
Tor other objects.
And now / Say, aud the Commissioners will admit,
from the of freight carried tolls recei ved and
the vas, amount expended in repairs that it is evident
that wben the list OF January 1872 the present Canal
Board came into Office and when with many professions
of honesty and loud demands for economy, the Commits
sloner OF the Eastern Division became member OF the
onrd of CanaI either the canas Of this