The Ottawa free trader., 1879-02-22
From the Peoria Daily National Dcinocr"
The Illinois and Esichigan Canai.

Speaking OF the proposal 10 ua,'Slea ,.a
the canal to the general government, .no
State Journal says the people OF lne slale
"are sick enough of the elephant, ana
if ANYBODY will take II or lhelr iiahus
and take care OF 1t, they VIII lhueeu ii"v1
occasion to rejoice. III mas coSl lhciii ''iii
lions of dollars for construction anu It,
pairs
Now. we eXOnerate one OF tiie eullols
of the State journal from making sucii
scsnd,lous assertion. But PAU Selny
has been an editor in Illinois for nearly
tb;rtv wears to our certain knowledge,
and If i'm that time, he don't know more
than is here indicated of Illinois pubic
affairs. he is too ignorant and dumb long
or TO edit "a paper in state tnat ne lills
dispraces. II he knows, and then makes
such statement, he is too dishonest ana
unfair to haveanything to DO WIN mould
inc. or directing, or attempting 10 en-
tighten public opinion. -
The Illinois and Michigan Canal never
cost the people or the tax payers OF LII
aois, by any appropriation from the pup
lie treasury, "a single cent; but has, since
1871. paid "a considerable revenue lnlO the
state treasury.
The history of the canal is substan-
italy this:
The federal government made doha,
tion of nearly half million acres OF laild
10 the state of Illinois for the purpose OF
constructing the canal. From sales Oh
these lands the first surveys ana EXPENSES
of the canal were paid. The state, be-
tween the wears 1888 and 1S4C, borrowed
nearly S5,OOO,000, for which 1t gave It's
kondS, to pay for constructing the canal.
This sum was expended, and interest
paid till the spring of lS4l, when the state
defaulted in payment Of all her interest,
and suspended work all along on lhe llie
of the canal Matters remained thus I'LL
lS42.
In the summer of 1S42, Michael Ryan,
Of Ottawa, who had been an engineer on
the canal and acquainted with its history
and affairs. in consultation with others,
conceived the idea of turning over the
canal to the bOndhOlders, American and
English, of the canal bonds. TO Othisend
NE sought an election to the state senate
in the election of August, 1872. lie went
before the Democratic senatorial c0nven-
ton for the district of which LA Sale was
the leading county, but he was defeated:
He then took the stump as the "bolter'
candidate on this hobby of engaging
the bondholders to finish the canal, and
was elected over both the Democratic
assured OF his election to the Senate than
he started for Boston and London to see
the bondholders. They were willing, pro-
yided the necessary legislation could be
secured. Ryan hurried home in time TO
take his seat in the Senate.
At the session of 1928 such grand pat
riots as Ryan, David l.. Gregg, DR.. Ma
bony, of Lake, Joel l.. MatteSon, Samuel
Hoard, OF Chicago, and Others whom we
cannot now readily name, were members
Of The Legislature. They entered heart
ily into Ryan's scheme, and such legisla-
ton was secured as would Interest the
bondholders in taking hold of the work.
During lS43 and 1874 the bOndolders and
state authorities perfected the scheme,
and the Legislature of 1874 -45 sanctioned
it, and in the spring of lS45 the bondhold-
ers recommended the work on the canal.
Meantime the state had defaulted for
ever four years i'll payment OF interest
on these canal bonds. The arrangement
was that the bondhholders were to ad-
vance 81 600, 600 to complete the canal on
the shallow cut" plan. Thus the bond
holders had-irSt, The original sum OF
the bonds issued, nearly $1,000 GOO, then
they had only four years of arrears Of in
terest on these bonds; and next they
had the fresh 81, ,GOO, ,OOO advanced to com
Dlete the canal This made sum alto
gether of near 5000, ,UO9 that the bond
holders had assumed, or advanced. The
bOndh0lders didn't organize a corpora
ton but appointed Trustees to manage
the busineSs-the bOndhOderS two trus
ices and the stats one trustee. Under
this arrangement work was resumed on
the canal some time in 1876 and late in
the fall of 1913 the canal was completed
and opened for navigation.
Under this arrangement the bondhold-
ers were to manage the canal until Ger
tain results were accomplished. What
were these results? The Trustees for the
bondholders were to take possession Of
and sell all the canal lands and lots re-
naming unsold, and apply the proceeds
10 the liquidation Of the bonded and other
debts on account of the canal When lin
lshed they were to take all the receipts
Of the canal for tolls and rents, and after
keeping 1t in repair, and paying cost of
running, apply the receipts to the pay
ment of bonds, arrears of interest, and
10 reimburse themselves for the 81 800 600
advanced to finish the canal.
Under this arrangement, Mr.. state
Journal and you new corners into the
State, you must understand that the re-
seipts or revenues Of The canal actually
paid off first the 5000 900 of bonds,
the arrears of interest current interest
en- the bonds, and on the arrears of in
terest, and the principal and interest OF
the 81 900 last advanced, besides all
current expenses for maintenance and
repairs
In face Of these facts. how dare you
say the canal ever cost the taxpayers Of
Illinois "a single cent, or that the canal
never paid any revenue?
The Canal Trustees took the canal
lS4j; they finished in lSiS; they turned 1t
ever TO the State in 1871 They thus had
it for period of % years from the time
navigation was first opened. During
these 23 wears the canal paid expenses of
maintenance and repairs; during these
years the receipts of the canal paid the
original 5000 900, arrears of interest, all
current interest on the whole sum, and
on the Sl,6OO,OOO, and finally the last
named sum. And in 1871 the Trustees
turned the canal and all It's properties
over To the State, free OF all dCJt or iHcuDl.
brunoe, without nickel being drawn
from the State treasury And yet men
after the dishonest LIE that the canal has
cost the State $l2,0O0,C00: The bond
hall oil hpi % Io l.,