New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-07-05
CANALS BAY GONE BY.
SO NORRIS COMPANY SAYS.
Boats Could Not Afford to Go
Through Free, 1t Declares.

In response TO a request made by the commits
sioners. former Governors werts. Grigss and |
voorhees,. appointed TO examine into and re-
port upon the question whether legislation shall |
be enacted permitting the abandonment Of navi-
cation the Morris Canal q statement OF
facts presented by the Morris Canal and Bank
ing Company through its attorneys has Just
been received by Ex-Governor Werts. The state
ment. which is in pamphlet form and contains
about one hundred and fifty pages. has been
thoroughly and carefully prepared. II carries
the history of the Norris Canal from its incep-
ton, in 1924, down TO the present time from
which il appears that the total cost OF the canal
UP 10 1S41 was approximately 50. 10000. Under
foreclosure proceedings the canal was sold in
1874 TO Benjamin Williamson. Asa Whitehead
and John J. Bryant for $1,000 COO The COM
pany was reorganized. and under supplement
70 the charter. new issue Of shares OF pre-
ferred stock was made. These shares consti-
tute the present outstanding capital stock. and
have a par value Of 81. O25.OO0 common and
S1.175.O00 preferred stock
In 1871 the Lehigh Valley Railroad Company
leased in perpetuity the Morris Canal The total
debts OF the canal company at that time were
S1.125,129 90 The lessee was authorized 70 sell
any real estate Of the canal company not re-
quired for canal purposes, and to use the pro-
ceeds toward the payment Of the debts OF the
canal company. Sundry parcels, the statement
goes on TO say, were sold and the proceeds ap-
piled TO the debt, which was refunded and re-
duced, so that at the present time the total in
debtedness Of the canal company is S556597 90.
As part OF the argument in favor of the
abandonment OF navigation on the canal the
statement Of facts refers with special distinct
ness TO the lease by the State TO the Morris
Canal and Banking Company Of a tract OF land
under water in Jersey City. known as the basin
in 1867. the condition that the company
should keep gaps open for navigation For this
lease the State was. to receive $4,000 a year.
which might at any time be capitalized at
$351,142- This annual rental was paid by either
the canal company or the Lehigh Valley Rail-
road Company until 1899; but the basin was at
no time after the lease needed for the business
of the canal" In that year the railroad COM
pany paid to the State the capitalized sum Of
| S357142 and the Board of Riparian Commits
sioners in consideration thereof and OF the
| further sum of $4,000 paid 10 the State. gave
| grant in fee simple TO the railroad company OF
this BASIN and this property was thereafter de-
! voted to railroad uses. At the same time the
| canal company released to the Lehigh Valley
| all its right in the basin in consideration OF
| S5O0OOO and this sum applied 10 the mort
| gage Indebtedness of the Morris Canal and
Banking Company, which thereby was reduced
/ from S1,UUD,UUU 10 SOUOUoU.
| The statement next takes up the subject Of
| the growth and decline Of tonnage. by which
/ it is shown that whereas in 1856 the
/ tomas e amounted 10 SIS 30 tons and the
| gross earnings 10 S616.350. they had de-
| clined in 1911. when the lease was made. to
! a tonnage of 629.044 and gross earnings OF
/ S2S3. T25 "a In 1900 the tonnage was only
125. $50 tons, and the gross earnings were SILL
| or 10 The canal has not paid operating ex-
| perses since 1876 This failure to pay is ac-
! credited TO the competition OF the Morris and
Essex, the Delaware and Lackawanna and the
| New-Jersey Central Railroad companies. The
report says that fevery ton Of coal now brought
across the state by the canal is furnished by
the Lehigh Valley Railroad Company, and is
| carried al a material loss 10 that company, the
rail transportation being much cheaper" En-
| phasts is laid upon the fact that miscellaneous
| freights have almost entirely disappeared from
! the canal. The policy OF the company was
TO encourage the public TO bring its boats TO the
| canal; and yet every boat not owned by the
| company disappeared from the canal many
/ years ago and all those that remain. seventy
/ hve in number, belonged to the company.
Nothing" the statement continues. could better
/ illustrate the Judgment of the public 10 the
/ commercial worth OF the canal Valuable as II
/ once was. its day has completely passed by. and
/ il has been superseded by better and cheaper
| means Of transportation IF the canal
! company should allow boats 70 pass through
without any tolls Whatever, IT seems quite clear
| that owners Of boats could not afford 10 navi-
| gate the canal in competition with railroad
| transportation"
/ The statement next takes up the Newark and
! Jersey City water contracts" which have been
| frequently published. II appears that the sew
| eral consents and contracts for diversion OF
| water have yielded 10 the canal company S4OO.-
/ 600 This sum is available for the payment OF
! the debts Of the canal company, which now
| amount to S556597 80.
| The statement points out that although BY
| the charter granted in 1924 the property used
for canal navigation was 70 be forever free from
! state county and municipal taxation. the com
pany after prolonged litigation and negotiation,
finally paid under protest. the lump sum OF
$4,000 for taxes from 1884 70 1850, and has
/ since continued 10 pay State and local taxes
| annually also under protest The aggregate
| amount Of taxes paid 70 the State from 1854 10
/ 1892 is nearly $4,000. For local taxes the
amount exceeds $4,000 The statement says
| that under several legislative enactments since
| 1884 the Morris Canal and Banking Company
| might have extinguished the right OF the State
| to take over the canal in 1924 or 1874. as the
| charter provides under certain sr;pulations;
but the proprietors did not see their way clear
| 10 making use Of these provisions" OF law The
| statement adds that these legal enactments
/ clearly evince. however. that the legislature.
neither in 1884 nor in 1855. deemed that the
canal would be OF any greater value in the hands
| OF the State
The remainder OF the statement is devoted 70
the water rights OF the canal company, the
| property owned by the canal company" the
| charter in full Of the Morris Canal and Banking
Company, the supplements thereto. and amend
atnrv acts together with exhaustive decisions.