New-York tribune., 1877-01-03
NETWORK DAILY TRIBUNE,
the cred,, o, al, the canals. as shown in column

inS e.eoi' Oh al INC oa"'S 54o19l 90
The payments from the revenues Tor collection,
ordinary repairs. and mscell ncOns expenses,
which charge the revenues as SHOWN ooo o,a 70
In column 2, WERE -'''''''''', ~ I'o -
Surplus revenues (deducting from d. s3Ss i5s @ ~
The profit and loss IN operating the SEVERN Ina .
shown separately and in the aggregate III Columns
TRs 1Rs profitable canals earned ses 9s
The non paying canals lost tsee column ~ ali IN. ''
canals from proceeds of taxes, for exIaordlnary
repairs and Improvements, for AWARDS made Dy
the Canal Appraisers and canal Board and nd the ne
interest thereon is shown III column % 51oo5o 10
om 1oii ,her af revenues and from pocess
as shown ~ 1n, eslTs as o. o'ins 'l' so
The total income rom tolls ana p@n DrneI 5ioI9I 90
Total payments in excess of income. W
The income Of each canal in excess OF total dispuse
ments or the in excess OF income as tne
case may be, is shown in columns ana .. -
Separating the constitutional canals from those "c
may be Sold leased otherwise disposed OF as S
following results in operating them Tor the '
CONSTITUTIONAL CANALS
fs faTq aessP5i SF FfPs's SPi4
cssss1 Sss%Dn $685. Sss s. s 5Ssa5 50 TITS II
ssSesa' ssSsa% lloss 90 1896 80 1882 "a
$40 SO 81 i2Ssi2 II s5os "a sl25l55 O2
Deduct defciency from surpus.... 125,l65o2
ESTIMATED CANAL REVENUES FOR THE FISCAL fhAh
COMMENCING OCT l, 1876.
The toll receipts the first three months OF the fiscal
year commencing Oct. l. 1876, show falling OH com
pared with the corresponding period OF the previous
year equal to 10 per Using this data as basis OF
calculation. we have:
Receipts Sept 1876, to the close Of nav ac
Estimated receipts from the opening OF navga
tion Spring OF 1877 to Sept i, same ,o, ooc n.
Tota, rcceipts S., ,l96453 40
The actual cost for maintaining the canals for ~ o do
the fiscal year ending sept So 1916 Was--. i%o-ooo -
p.,mo,oa deac,oncv for maintenance w s56OO %
From the above calculation. which is only partly esti
mated would appear that the prospective revenues 1or
fall short OF the expended FOR maintenance the pre-
year. and below the gross recelps oi any year
Should anything TO add to the cost OF repairs or
should competition for freghts upon the opening of
navigation in Spring of s77 be active than hereto
fore the deficiency will be larger than estimated
THE CONSTITUTIONAL AMENDMENT LIMITING Ex-
PENDITURE IN ANY YEAR TO THE GROSS INCOME
OF THE PREVIOUS YEAR.
On the ls of January 1879 the financial article OF the
Constitution, amended by vote of the people Nov 3,
1874, became operative
The sixth section Of the article, as amended contains
this provisions:
"Hereafter the expenditures for collection, superin
tendence, ordinary and extraordinary repairs on the
Champain. and the Cayuga and SENEGAL, shall not ex
ceed IN any year. their gross receipts lot he previous
year"
When the amendment was first proposed In the Legls
laure 1874 the OF all the canals for the
fiscal year ending 3Oth September, 1878, amounted to
S3 O27 sos 81, which the lowest aggregate, with
but single exception for the twelve years preceding
There seemed be serious objection to the amend
menf when proposed. there should be none III pri
cpe Those who favored lower rates OF toll than then
prevailing reasoned that by reducing and restricting ex
penditures corresponding reduction III rates would AS
suredy follow and those who were determined that me
canals should be sefsupporng and make the necessary
annual contributions toward sinking iund ana pa! ment
Of interest on The canal dent argued that RESTRICTION oi
expenditures To income would haturalh compc tne L
position of such tolls would meet all the constitutional
demands upon tire OF the canals besides making
all needed repairs ana improvements Inc posnDy az
any time of the income falling below the cost of repairs
was neither contemplated nor providei Tor
The gross income OF the four canals named in the
amendment for the last fiscal year. "hich a.. ,o, =,
The OF collection, ordinary repairs. ana
t.Iest and sinking fund l,l7oO27 AZ
Leaving margin Of only. ................ $27j,374 OF
which could be expended during the current fiscal
for ordinary repairs the iepdraton of breaks III excess
OF what expended during the last hsca year Onuer
the restrictions OF the Constitution, or unul the canal
debt has been fully paid or provided i0r, no portion OF
the canal be expended for Extraordinary
reyairs improvements such repairs must DE nlade
from funds raised by taxation. " .
materially the cost of repairs and nothing occurred 10
interfere with the system OF rgld economy "hch pre-
vailed Labor and materials were cheap. and II ls eX-
ceedugy doubtful whether the four canals embraced in
the amendment be maintancd al tie same aggit-
cat. cnst for An heightened period without detriment
to NAVIGATION and the pershable portion
OF the 10 decay, policy which would uit-
mately require large outlays for reconstruction
If IN any year the income OF the canals shou fall to
lower than the actual cost of maintenance. or
series of disastrous breaks should resulting from
floods winch no skill foresight can prevent,
involving extraordinary expenditures ior repairs how
is the emergency to be met Either the constitutional
restriction must be ignored or the WORK OF repaaton
be postponed until the obstacle shall have been removed
The Auditor believes that the adoption of the amend
nent question, though apparently designed for good
purpose. vas exceedingly unfortunate III view OF the
present diminished diminishing revenues, unless the
Legislature shall anticipate and be prepared Tor an ee
gency which Is liable to present ITSELF
TIE EFFECTS OF RAILROAD COMPETITION.
Tie entire debt under the third section of Article
of the Constitution ON the Ist of January, 1872,
amounted to So @2S5 00O all of which matured between
that date and October l. 1875. As the several install
ments became due the for reimbursement except
ing 500 600 paid from the sinking fund, were procured
by deficiency loans the credit OF the shklbg iunu
running from 10 to IS years.
This process of liquidation in plain words, was simply
an extension made necessary in consequence OF failure
III the revenues carry the financial plan of the Con
suton For the last two years the surplus revenues OF
the canals have not been sufficient to pay i'll full the in
terest per cent small debt OF -, $4,000. and
have totally failed to contribute anything to the sinking
fund.- for tine redemption of the debt on the credit Of
which the loans were obtained.
The deficiency for the fiscal year ending 3Oh septem
ber 1879. made good by diversion Of funds which
previously lad been raised by tax and appropriated for
last fiscal year. ending 3Oih September 1876, Will re-
quire the imposition of Il tax to meet It,
These deficiencies the result OF causes reduced
tolls and reduced tonnage The greatest loss in &c
to have followed the greatest reduction in tolls,
when precisely tue opposite result was predicted by those
who advocated the reduction.
This loss OF tonnage is attributed TO the fact that the
two main railway conn panes OF this State have been
Transporting freight at rates which made it impossible
for large portion of canal earrers to run their boats
From the second week IN June 60 the second week In
October, 1876 railroads carried wheat from Buffalo