New-York tribune., 1906-03-27
MORRIS CANAL HEARING
ELTIN,S RESOLUTION UP.
SchapperkOtter ASSdiLs assembly
Resolution to Probe Lehigh Tenure.


tain the states right in the Morris Canal basin
at Jersey City had a hearing before the SEN
ate Committee on the Revision OF Laws this
afternoon.
Assemblyman Prince. of Passaic. stated briefly
the situation the Morris Canal question He
said there were two diverse views and bills
in the House, and a result the House had
united unanimously in favor of the EIvins reso-
luton He believed the Lehigh Valley was al
lowed TO take over the canal basin Illegally in
/ 1871. The canal charter should have been re-
| voked before the canal basins rights were
granted, he said. A recent decision of the United
States Supreme Court. he declared. decided this
| point emphatically.
| DR.. Prince said it at least an open ques-
ton, and the resolution merely asked that the
! Attorney General bring suit to determine the
matter. J. F. Schapperkotter, general counsel Of
! the Lehigh said:
The purpose Of the resolution is first to at
Lack me title Of the Lehgh Valley Railroad
&c company Iy 10 It's terminal on the Hudson River
IA Jersey CITY, which was granted to the COM
pany by the state in 1899 and, second to break
c,,e c1g lease or me Morris Canal to the railroad
ny IN IS'l' and TO take away the canal from the
The first attack, if successful would rob the
Iallrosd company Of several million dollars, and
preclude, II possible its reaching tidewater
Inc second, II successful, would break the Nor
rs Caial tease and while that might be an /
immediate financial relief to the railroad com
Pany' the result would discredit the company |
ulsIurD It's existing relations and lead 10 va |
rlety OF litigation the end Of which no one can |
IOTesee. so WantOn attack on property was /
! think never before attempted in the New |
Jersey Legislature. The resolution was passed |
IN the House without notice, without reference |
70 a committee without debate, without any |
dellDeratlon and without reason It's Dassa ge !
was nasty, rash, indefensibIe proceeding
II would have been equally justifable to at
United Railroads. made in 1873, or it's terminal nal
grant from the state. made in 1869 or to attack
IN tne central Railroad grant, made in 1874 for
parlan lands or to attack the Morris and Essex
gran. grant OF It's terminal in Jersey City and Ho-
ROAD terminal grants in Hudson County.
BEGINNING OF THE TROUBLE
So far I know, IT never occurred n arv-
Dody that the title Of the Lehigh Valley Rail |
Toad az company to its terminal lands. granted to
the heRring before the Morris Canal Commits
SION consisting Of Governors Werts Griggs and
So, Roophees, me city counsel Of Jersey City on
december "a 1903, insisted that he had found
a nav IN the company's title. The history from
which he evolved his theory is this: The ter
IhlIldl IahQs consisted Of parcel Of forty-four
acres wholly under water $50 feet wide along
me hudson River, and extending 1000 feet deep
10 Washington street.
In 1867 the Legislature leased this tract 70 the
@Morrls MOTT Canal and Banking Company for S25,-
w year, with the right to the company to
convert the title Into fee at any time by pay
ment Of $357,142. The act Contained the nro-
vision that it should remain in force during the
Coi4ILIIud4lCe OF the motifs Canal charter and |
vert to the state in the same terms provided IN !
the charter Of the canal company.
When that grant was made IL was thought | ,
that these lands would be necessary for a large |
basin for the canal The year 1866 was the
nghWater mark for canal prosperity Nobody |
foresaw that from that time the business of tho !
anal would rapidly decline the invention and ! Z
use @Ise OF steel rails making rail transportation !
,heaper. The canal company did not need and
lld not use the land granted 1t became known
as the basin Of 1867"
In rba
~, SONS t OF mat act persons and corporations
ana their assignees having legislative leases
I Z .ig i enabled to obtain absolute grants from
-S Il'a-ltn commissioners under the terms of I
ne act The act seems to have been framed for
lst such cases as the Morris Canal lease
IN I5tl the Legislature authorized the leasing c
u me Motifs Canal to any person or corpora
ION perpetually and on May 4 1871 it was I
eased perpetually TO the IehiPh valley Railroad q
'ompany. The Legislature 6v act 0f STriI .
90 expressly recognized this lease and author
zed the Lehigh Valley Railroad Company to a
90 remained unimproved, the canal company i
na the railroad company paying the state S25,- g
BOUGHT THE BASIN IN IN 1855 IS 88''0O'OOO c
ia ISo5 the Lehigh Valley Railroad Company
PPIieq under the Riparian act TO the Riparian
y pillssloiiers Tor q grant In fee Of the basin. J
ne commissioners collected from the Lehigh
alley Railroad the said sum Of 1857 .142 and 7
ne further sum, which they added. Of SAB coo; | q
M the Lehigh Valley Railroad Company paid 1
ato ne t6e treasury OF the state S405.142 July '
ses, subject to the duty to keep open part of I
as public waterway for other owners v
This reduced the area of it to the extent OF a
Dout seven acres. The company had therefore |
irst and last. paid into the State Treasury for I
his grant about S955,0OO, which is believed to q
'e by far the largest price which had ever been
)ad Tor any state grant The railroad company +
roceeded to build its terminal on this tract
md on a strip 800 feet wide behind II, known C
S the West Line Grant, for which it had paid =
he state S125,OOO. Fl
The states total receipts on this narrow ter v
ninal property were $1,0SOOO0, besides many
ears interest on the West Line Grant lease Is
IN this strip the company proceeded TO build it's
allroao terminal at the same time projecting it's
ines westward TO Buffalo, and q new trunk line I
vas thus brought into Jersey City. Several
nillion dollars were expended this terminal
property, and il has been taxed as railroad prop
rty ever since The grant from the state was
igned by Governor Green, approved and
ndorsed by Attorney General Stockton and the
riparian Commissioners and has the great seal
4 the state upon II. The most eminent counsel
4 the state were consulted in it's preparation o,
md agreed with the Attorney General in ap- :.
proving 1t as conveying perfect title. !
The railroad company TO forestall any ques- d
ion Of any remaining interest in the Morris y
anal and Banking Company, paid to that COM b.
any 100000, which Immediately devoted
o the retirement Of that companys bonds The n
Corporation Counsel OF Jersey City argued be- 1
ore the Morris Canal Commission that the ri
aran commission did not really authorize the G
rant 10 the railroad company, and that Cow D
rnor Green, Attorney General Stockton and the
iparian commissioners did wrong to make it.
The commission passed II over with the simple
enark that any such questions, If there We're O
ny, were for the courts and not for them. No -
ody ever had raised the question but the Cor =
oration Counsel Of Jersey City. a
ATTACK OK "REFORMERS" e
His mischievous suggestion has been caught Ie
p by the little circle of self-appointed reform
RS who have been noisy OF late They uues- s,
ion everything and attack everybody who has n
property but votes. They affect to find great az
wrongs where one had suspected them be- u
ore. Character. industry faithful admnlstra- r.
20 reasons I'm their eyes for refraining from at in
acking property. They are not safe advisers Of CO