The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-07-16

The action OF the State Legislature in con-
senting to the reduction of canal tolls for the
present year below the rate of 1876 is just
now being sharply criticised by those who
| opposed this particular reduction at the
time and ore in general advocates of high
tolls. The receipts from tolls up to the end
of juno this year are s1S7000 less than last
year, and this affords the groundwork for
the prediction that the close of the season
of navigation will find us with Sc
rious deficiency of canal income. 1t
is certain that unless we have revival OF
business activity before the autumn, not
our canals alone. but the trunk railroads
throughout the country, will present an un-
favorable balance sheet, so far rs transporta-
ton is concerned Yet the approximations
expressed in regard to the canal revenues,
while they have some apparent foundation,
are in reality premature. The canals
opened four days later this year than
last, and opensd with an unusually
slack business, while last year there
was o somewhat active shipment in
tho early days of navigation. There
is not unreasonable expectation in
commercial circles of heavy move
nlent OF grain in the coming autumn,
based on the abundance OF the crop and the
great probability Of an active foreign de-
mand. The low tolls adopted this year, if
they have not as yet brought as much
money into the canal treasury as the higher
rates of last year, have ut least drawn to the
canals much larger percentage OF the
gross amount of grain shipments from the
West Last month the gross shipments
Of grain were five million bushels
less than in June, 1876; but the
entire loss fell on the railroads,
the canals having carried about the same
amount that month in each year, the differ
ence being slightly in favor of 1877. This
indicates with tolerable certainty that If the
expectation of heavy movement later in
the season should be realized the main
benefit of the increased activity will be
reaped by the canals, owing to the attrac-
ton of low tolls Hence we may yet find
the fears Of decreased revenue groundless.
and the State may not be called upon to
make up deficiency by taxation.
We may remark right here that
the argument of those who are SO deeply
concerned lest the present season Of naviga-
ton should close with deficiency of canal
revenue, thus compelling the imposition of
q small addition to next years taxation, is
singularly inconclusive. They ignore the
depression OF business, lay the blame on
low tolls, declare that the reduction from
last years rates was suicidal, and insist
upon an increase. But high tolls, especially
imposed in the middle Of the season, would
leave the canals with scarcely any revenue
at all. They could not then compete with
the railroads, which are carrying at low rates,
and the retrograde policy would be certain
to offend shippers and to ruin the canal
business. The end Of the season would find
the canals with still heavier deficiency
than they are likely to have under the worst
conceivable circumstances with the present
policy, for the expense of maintenance
would be as great under high tolls and no
business as under low tolls and q fair
business, and the canals could not then
hope to secure the largest proportion Of the
shipments should the anticipated move
ment of grain in the autumn actually occur.
Hence we may fairly conclude that this argu-
ment in favor Of an increase of tolls at this
time is masked battery. and that behind it
lies the wish and the intention to destroy the
canals. and sweep them altogether out of the
path OF the railroads.
One serious difficulty would follow very
material falling off in the years receipts of
tolls on the principal canals. By the
amendment of 1874 the State constitution
provides that the expenditure for collec-
ton, superintendence, ordinary and extraor-
binary repairs on the Erie, Oswego,
Champlain and Cayuga and Seneca canals,
which are all that the State is now
bound to retain, shall not exceed in
any year their gross receipts for the
previous year. Thus, if the gross receipts
of those canals for this year should be quite
inconsiderable, their maintenance next year
would be seriously If not fatally crippled.
Such a misfortune might occur if the inju-
dicious policy of raising the tolls in the
midst Of season Of navigation should
have prevailed. But while the canals
are bringing from the West q largely in
creased proportion Of the gross amount of
grain moved this year, as compared with
the proportion they carried last year, we
may, without risk, conclude that if a def
cheney sh ould be shown at the close of navi-
CATION in 1877 it will not be such q serious
one as to threaten danger to the mainten-
ance of the canals in 1878. We ought, in
| deed, to be able to bear small decrease
from the gross receipts Of last year, since
next year we shall no doubt secure
! the full benefit Of the new canal sys-
tenn provided by the last constitu-
tional amendments but delayed through
the partisan action of the Legislature The
chanor TO the S11Derintendent system the