New-York tribune., 1876-02-16
TEE REPORT.

To His EIceIleacy the GOrcrnor, ard to the
Honorable tie Legislature Of The state Of Neio Iork-The
understand Commissioners, appointed by the Governor
with the advice and of the Senate, under CON
current resolution of The Legislature adopted the 3lst
day of March last to investigate the affairs OF the Ca
nails Of the state. and especially the matters embraced
In the special message OF the Governor communicated
TO the Legislature on tie 18Th day Of March, 1870,
have the honor 10 submit the following report o. te pro
gIess Of their inyCst lSati0rs:
Your Commissioners assembled at the Capitol, quail
fed and organized the 12h day Of Aprl 1875. The
between that time and the opening of the canals
period Of about six weeks, was devoted eAcuSiVey 10
an examination Of the most important works in prosress'
or recently completed in tie PRISM Of The canals When
this examination interrupted by the introduction of
water near the end of May your Commission returned
10 the Capitol, and proceeded TO supplement and en-
large the area of their information. by the examination
Of witnesses IN this work they were Unexpectedly EN-
barasscd by decision Of Of tae judges Of this dis
trct at Special TeIm denying to them power which
they supposed TO Lave been conferred upon them by the
legislative authorities require the production before
them the books and ISpers Of witnesses They di-
rected an appeal be taken from lis decision and 1t
was finally reversed the General Term, hut not until
late in the month November. Till when your Commis-
sion was obliged contend with all the ncOnveuiences
resulting Fl, IN the privaOn o. such necessary and
indispensable prerogative. The opinion of Justice
Learned ut the Special Term and that of Justice James
at the General Term. annexed to this report
On the 31st OF July the Commission submitted their
first annual report the Governor. II relates to con
tract substituting slope and vertical for bench wall
between Port Schuyler and the lower Mohawk aqueduct
This report followed at intervals by eeven Others
copy Of several reports together with the tes
mOny taken before the Commission. covering together
1927 pages is submitted with this report. Several other
reports in OF preparation one on the Gens
Fall Feeder second the Canal Appraisers ice awards
at Rochester IN 49, and Third on the W. C. stevens
contract assigned to Deniscn Belden Co.. for dredging
the Albany basin. dated Dee 81 1865 will be submitted
at an early day.
As we have been able to examine only limited
portion of the work done on the canals since 1865
OF course we have found it impossible to extend
our inquiries beyond that year, though we have
abundant evidence that the msuanascmeDtoi the canals
dates from much earlier period
LOSS on THE CANALS.
Introductory such conclusions we are now pre-
pared to submit you it Is proper thai first iavte
your attention to the character Of canal property
an investment ana show precisely how it stands upon
the books of the State.
The total revenues from system OF canals
The close oi tie .as fiscal year, including
gains re,.u tlme from the mana -eihcut Of the
Sinking lund amounted 10 - M :, 4U''l29 VI
period incluons construction lC1 O3357 81
Excess cost over earnings s2~ -96-9s 90
This sum OF S2S.OOOD and upward. ropics uts The
premium which the people OF this State have paid in
taxes during the last fifty odd years, to and en-
courage the use Of these waterways for purposes Of
transportation; the equivalent OF annual subsidy Of
over SJ600OO.
The tolls received from al the csnas dnring
the hs, al year ending sent lofO amounted o, ooo -
There wcre oxprrdcd fol repairs
and ma nienance during Tie same q - oo-o,
D""''s - 2.552,o93 90
balance arairst tie state ........... $3.50 l03 %
II To tins added the interest the canal debt the
cost Of collection and the difference between miscel-
nd ag sptf N I'm
Exhibit b. the loss TO the from the canals during
tie Last fiscal year. will he found 10 amount 10 the enor
nous sum Of Sl412,470 10. The more conspicuous
evidences OF misIaanagemeHt which Investigation
has disclosed may be divided into three cat@goues;
FIRST as to the modes of letting contracts
.SecOad as To the modes OF measuring ana estimating
work to the contractors.
Third as facilities for procuring legislative relief
FRAUDS IL LETTING co TRACTS.
First as 10 the mode of letting the contracts
It to have been the practice for years to let con
tracts upon conditions which exclude honest contractors
and cOnfne this business at least as 10 what arc termed
extraordinary repairs" almost exclusively 10 large
capitalists largo deposits required from contractors
discouraged biddors with small leans, while the
couragenent offered to unbalanced bidding by neglect
enforce the faithful performance OF the PROVISIONS OF
the contract tendency 10 exclude all who bid fair
prices with the honest intention of giving the State fair
work for them. TIL since the commencement OF this ILL
yestigatiOD. do not know OF single instance Ia which
any forfeiture OF deposit had been enforced against
any contractor; while we believe We do no one any III
Justice saying that contract has been lot since 1863
the provisions OF which have been properly complied
with.
FALSE MEASUREMENTS.
Second As to tho mode Of measuring and estimating
work to the contractors This responsible duty involy
Ing as 1t should perfect familiarity with the terms OF
the contract and with the character OF the work in prog
ress has been dcvoved not by law but in practice
treiy upon assistants who not who. but in
~ a mi tpuf
knowledge OF engineering; and who in nost cases al
pear heir positions and therefore to have been
in greater o. less degree dependent upon the poca
favor and influence OF the contracting class -
nearly all vertical wall Is constructed h the WINTER
early Spring, and whom the banks are fOle the cut
IA usually vertical nearly aud charge Tor such
excavation upon the state The contracts also
uniformly provide that the contractor shall be allowed
cavated behind the walls, II such hng is from earth
already paid for excavation, unless be IL obliged "
draw his material than 200 feet the line Of the
canal This provision has also come TO bo treated as OBJ
solcte, and tho State seems To have been uniformly
charged not only for excavation which had not been
made but for hlng up tDe assumed excavation which,
had made. the State not bound To pay for.
The profits derived in this indirect way through the
fraudulent connivance Of the agents Of the State
has led 10 an enormous expenditure for works
wholly unnecessary, and which To keep In
repair continue TO subject the State to
present 10 inquire the business OF tie canal justified
the resuova OF the old bench walls at all IL il
throughout at least Of the entire extent
which vertical wall has been cOnstructed and at the
rate paid for slope wall during tbis period would have
re nlGed economy To The state 0f not less tnan
81 800, 600, or nearly 100000 n year.
An important iem in the cost OF this vertical wall was
made of the fictitious estimates 10 Whch We nave
already alluded Assuming that the State was undoi my
charged with fictitious excavation and emlanknient
along the entire length OF this vertical waiand we nave
no satisfactory proof that single rod OF IL entitled