Perth Amboy evening news., 1906-03-14
LEHIGH
A RICH TO
THE CANAL?
ASSembIyman EIViHS Questions
Claim of Company TO Tide
water Basis of 1857.
MAY Be LEGAL BATTLE.

TRENTON. Mar. 14.-Morris canal
abandonment bobbed up in the as
sembly again yesterday morning.
when Mr.. Elvins, of Atlantic, got
through a resolution requesting At
tOrney General McCarter to institute
forthwith proceedings to ascertain
whether or not New Jersey has an
equity in the tide water basin the Jer-
sey City, also by what authority the
Lehigh Valley railroad company op-
crates the Morris canal. The resolu-
ton was passed unanimously. It
follows:
Whereas, the Lehigh Valley rail-
road company claims that its title to
the tide water basin of 1857" is alb
solute and,
Whereas, the last section of the
law of 1867 referring TO the tide
water basin" reads as follows: And
be it enacted, that this act shall take
effect Immediately, and be in force
during the continuance of the charter
of the said Morris Canal and Banking
y III at III CApli dllOI Vi
that time the lands hereby granted,
with the improvements thereon, shall
revert to the state on the same terms
and conditions provided in the origi-
nal charter of the said company, re-
speeding the transfer of the property
thereof to the state; and,
Whereas, in a decision handed
down yesterday March 12), by the
supreme court of the United States,
it is stated that 1T "a corporation)
can make no contract not authorized
by its charter" and.
Whereas, the Lehigh Valley rail
road company is not authorized by its
charter to conduct a canal business;
therefore be il
Resolved, that the attorney general
is hereby requested forthwith TO in
stitute proceedings to ascertain %
whether or not the state of New Jer-
sey has an equity in the tide water
basin of 1857" and 90 by what au-
thority the Lehigh Valley railroad
company operates the Morris canal.
In speaking to the resolution Mr..
Elvins said it was for the purpose Of
settling a question which has been
bothering the mind of New Jersey
for years. The attorney general, he
said, vas requested to find out what
interest, if any, the state had in the
canal properties and by what right
the Lehigh Valley railroad company
$50 tha NTorrsc nano1
Messrs. Miller and Perkins favored
the adoption of the resolution.
At the afternoon session the attor-
ney general submitted a communica-
lion in answer to the resolution. TAX
ing up the first request Attorney Gen
eral McCarter said that had been full
ly gone into and reported on by the
Morris canal commission of 1903. Mr..
McCarter reviewed the report of that
commission, and showed that the ba-
sin had become a part of the Lehigh
Valley terminal in Jersey City, upon
payment, according to law, of over
$1,000 600 TO the state, and the further
payment of $4,000 for a riparian
grant. The attorney general said
there always had been a question as
to the claim of the Lehigh Valley
railroad company to own the basin in
fee simple.
AS to the second point, Mr.. &C.
Carter reported that the Lehigh Val
ley company was operating the canal
under a special act of the legislature
permitting the Morris Canal and
Banking company to lease its proper
ty.
Mr.. McCarter said if it was the in
~tention of the legislature that suits
be instituted the attorney general
would require associate counsel. He
suggested that a law be passed ap-
propriating $4,000 for the prosecu-
tion of the suits. A resolution of Mr..
Miller was passed, directing the jul
dietary committee to draft such a bill.