The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-03-20
THE CANALS.
Governor Tilden's Message to the
Legislature.
Fictitious Improvements and Profitable
Jobs Exposed.
TIE FRAUDS IN UNBALANCED Bids"
1 Proposed Reduction Of Taxes Of a Million
and Thrss-QuartsrL
THE STRATEGY OF CONTRACTORS.
Details ofthe Extraordinary Waste
and Corruption.
CONTRACTORS PAID FOUR TIMES OVER.
Remedial Measures Proposed in
Detail.
1 Proposed Reduction Of Taxes Of Million
and es-QuarterL
THE STRATEGY OF CONTRACTORS.
Details ofthe Extraordinary Waste
and Corruption.
CONTRACTORS PAID FOUR TIMES OVER.
Remedial Measures Proposed in
Detail.

Detail.
STATE OF new YORK, EXECUTIVE CHAMBER.)
ALBANY, March 10, 1876 !
10 THE LEaIsLATuRE:-
have received Q petition from forwarders.
boatmen and others engaged In transportation on
the canals OF this State, representing that the de-
pressed state of their business calls FOR legisla-
ton, and necsssitates reduction Of tolls. and
requesting me to look into the condition oil the
canal commerce, and TO make such recommenda-
lions to the Legislature as will lead to measures
Of relief
Respectful consideration is que to so large and
important class OF our business men. They are
proprietors OF about six thousand boats, which
are said to give employment directly to thirty
thousand persons ana indirectly TO twenty thou
sand others. They are in the peculiar relation OF
partners OF the State in vast Internal commerce;
owning and managing the equipment while the
state owns and manages the body OF the canals.
The State, therefore, not only has common IN
terest in the preservation OF the joint business,
but has q distinct and special interest in the
ability OF It's partners to continue to perform
their functions without which the joint business
could not be transacted. 1t cannot AFFORD to suffer
the equipment OF the canals TO be broken up; to
allow dispersion OF the trac. which. II once lost,
win not be easily regained, or to omit any
measures OF re;renchment in expenditure or
economy OF administration which will enable 1t
and It's partners to meet successfully the increas-
ting competition OF the railways with each other
and with water transportation.
Impressed with the considerations which in.
duce liberal policy on the part OF the State
towards Its partners in the internal commerce 1t
has seen fit to undertake, l am, on the one hand,
predisposed to every practical and just measure
for eniranchsing trade and industry and cheap.
entng the interchange OF commodities, and, on
the other, to listen to the rtghtlul complaints Of
our people against the extreme burden OF our
present taxation and the prOdgal and wasteiul
expenditure IN connection N with the canals which
have, therefore, ielt 1t NY duty TO devote tho
intervals OF time could command to a personal
investigation OF the subject, IN order TO be able
recommend to you SUCH specific measures as the
exigencs seems to require, IN the direction lndl-
Gated IN the following passage OF tue Message
had the honor to communicate at the beginning
Of Jour session.
A. careful Investigation whether the net incomes Of
ed. render Of what little exists Oralnaryrs
Incl, to ne srss. posscs
governed BY plan and purpose leading denite re-
suits and instead of scattering expenaiturss mper
valuable the specific parts Unity Of ad
and Improvements, should be established
INCOME AND DECREASE OF THE TOLLS.
Exhibit A is comparative monthly statement
1874. 1t shows that during the months OF Oc' ober
and November and few days OF December, which
abou, quarter Of the tolls Of iae year we're col.
lected, the decrease OF tolls Is from Sa36,1 II to
H. Of or on the o
spending decrease for the months OF May, June,
July Anguss aad September 1873, n as compared =;
5000 00O That would leave the tolls for the fiscal
year OF 1875 at s2,O37 900.
Assuming them to realize S2.2 600. We are
next to md the probable eject OIL the reduction
In rates which Is now proposed.
EFFECT OF REDUCTION.
Exhibit B is IA statement of the effect Of the re.
ductlon In the rates proposed computed on the
il a similar computation be made on g. 25o, 900.
instead OF S2,63ZO70. the reduction OF receipts TO
be produced by the oMerns OF Inc rates would be
canals Tor the fiscal year ending september go
1915. would be Sl.7l516s.
not only tue general depression OF commerce, but
particularly that OF the special business of the
TAXATION FOR CANAL PURPOSES DURING FIVE YEARS
FROM OCTOBER ], 1869, TO SEPTEMBER 80. 1874.
various methods in which the complex accounts
OF tue STATE are Kept. careful analysis and
comparison OF those accounts enables the follow
ting results to be stated In simple iorm:-
The total amount OF the tolls on all the ca
sals dnrng the ave fiscal years ending o.. a.. >.
binary repairs during the period
Vas........'......... .....'.....'..... SW24f4 20
The apparent surplus was............. $5s5a9g7 81
p:ssss IL ys -
Real de aciency, being excess of repairs or
binary and extraordinary. over Inc whole
other payments were =
Cost Of premium on gold SsGS IS
Cost OF premium on stock pur
1l snsssa EXPENSES, 4c....... s sasss
49, s.es,oso 80
Actual cost, exclusive Of reduction of
Payment OF debit. 80. 20 '0'''' o.
General Il i N debt over the re- sN''''''0
duciion OF moneys in sinking
unds.....'..''.''.''"....''' AoozlS % "a, ..
Contributions to general fund ........... 2OO0W 90
rotsl...,.... .....................s 1886 2s9 90
The taxes levied for these purposes during
the same period were. .S14 ,S4S rs
All these payments are directly for canal pur.
poses, except s255e, l32 90, which is In reduction
Of the general iund debt. and 100000 winch was
supplied to the general iund.
These two payments also are Indirectly or the
same character. 1ney Dut replace fresh advances
made by the general lund to mo canals.
10 the Ave years anterior to the period under
consideration from October |. 1864, 10 september
so, 1859, the taxes evied to meet Deficiencies IN
the king fund were 81 s7;i 030 81, and the taxes
levied Tor extraordinary repairs awards, &c,
were fo.32I0Jl 81. making -, l95.b o3 %.
Ine constitution article I, sc uon 81 provides
that every contribution or advance TO the canals
or their debt, from any source, otner than their
nIrect revenues shall, win quarterly interest, at
ury. Tor the OF the state out OF the canal rev.
enues as soon as it can be done consistently with
canal debit
In citing this mandate OF the constitution 1t Is
not intended TO revive the illusion mat even the
most recent advances OF the ~ ate IOr the use OF
tse canals VIII ever I've restored 10 the treasury.
There Is nttle probability that they can be re-
garded as investments capable OF producing q
reliable income. so lar as these enormous OUTLAWS
nave been usefully expended the state Will have
TO nnd It's compensation for the tayes n mas i'm
"A IN tpIIY nI