Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1911-02-20

Montelair, etc. a total of some twenty
two million gallons of water per day.
Doubtless other plants viii be ulti-
mately esta hlished by the State or by
municipalities. 1t Is difficult to say
what the Lake Will be worth for these
purposes, but with a reasonably linn
tied drsught such as would protect the
cottage owners around the Lake, the
value would perhaps be five hundred
thousand dollars,
The Company's right to divert water
will ipso faeto cease upon the aban-
Comment of the Canal and its only
water rights remaining of any value
will be its rights at the two Lakes.
Indeed, 1t has no other water rights
except as It owns the land covered by
Cranberry Lake and such ponds, which
may be sold for mill ponds and like
purposes, but have no other value. To
solve the problem Of Greenwood Lake
and Lake Hopateong, the managers Of
the Canal propose that upon abandon
ment the property owned at these two
lakes shall be conveyed directly to the
State of New Jersey. including the
land, dams and all water rights Of
every nature. The state will then be
in the position to dispose of them or
utilize them in any way the Legls-
lsture may see fit. They are valuable
and ear be made much more valuable.
SALE OF WATER RIGHTS BY
CANAL COMPANY.
on November 30, 1894, the Morris
Canal and Banking Company, as Lessor
Of the Lehigh Valley Railroad Com
pany, contracted to sell to the New
Jersey General Security Company, upon
the abandonment Of the canal, all the
surplus waters which it might then
have for the sum of S400, 600, which has
been paid. In view of the present de-
velopment cf affairs. the Railroad Com
pany has made a contract with the Sc
curity Company, whereby the latter Is
TO relinquish any rights which 1t OBJ
tanned by virtue of that contract and
the Railroad Company is TO pay back
the consideration therefor to the Sc
ourity Company, so that the Canal
Company and its Lessee will be at lib
erty to convey TO the State its remain
ing water rights IL any, without him
drance upon the abandonment OF the
Canal.
The amount of water which the
Canal Company has heretofore used has
been variously estimated and fire.
quently greatly exaggerated. The
most important point of intake IL at
Mountain View where II Is supplied
by the Pompton feeder. The amount
taken there liz probably from eleven
to twelve million gallons per day dur
ing the summer months.
LANDS OF THE CANAL COMPANY.
The Canal Company owns the land
constituting the Jog. so miles OF right OF
way: 1896 miles were acquired by con
domination or by deeds containing re-
v~ersionary clauses, which, upon aban-
Comment OF navigation, will forthwith
revert to the former owners. 7.S2 miles
were acquired by gift. occupation or
adverse user, and 1921 by absolute
deed. or his last item, 1.54 miles are
in Jersey City and l.53 are in Newark.
In Jersey City the Canal Company has
the Old Basin and several other parcels
OF land, all of which are assessed by
the State Board of Assessors at $500
900. II has other small parcels along
the line, the principal ones being at
Stanhope reservoir, Cranberry Lake,
Bear Swamp and Phillipsburg. These,
with small parcels here and there, COM
prise all the real estate of the Canal
Company.
! Personal PROPERTY OF THE
CANAL COMPANY.
There is no personal property except
a small number of boats. with mules,
tools, harness, etc. The whole has an
indefinite but small value.
WINDING Up THE CANAL COM
PANY.
Upon the abandonment OF navigation
the Canal Company will have the dis
jointed pieces of right of way which
they own absolutely and therefore will
not revert to the original owners,
various parcels along the line, the Old
Basin in Jersey city and the mules and
boats to divide among It's owners The
holdings of the owners are preferred
stock, s1,175, 900; common stock, ST..
o25, goo; holders Of mortgage bonds
$500, 600; old outstanding dividend scrip,
SAT, 8 $50; or a total of s., al, 1880.
Under the Governors bill which pass
ed the House In 1905 the Lehigh Valley
Railroad Company must at its WI
risk make settlement with all these In
t%erests, and the stockholders shares
must be condemned IL they cannot be
obtained by agreement. Then there Is
the claim of the state to have the
Canal In 1874 without payment. This
claim OF the State ought to be waived,
particularly II the Canal Company con-
veys Lake Hopatcong and Greenwood
Lake to the State. The Governors
have reported that the Canal as such
would be worth nothing to the State.
but assuming that 1t will have great
value In 1874, II win be seen that the
present value is small. In the Attor-
ney Generals attack upon the Big
Basin grant 1t was proved without dis
pute that $4,000 paid in December. 1889,
compounded annually at 4 per cent,
would amount to 81, 294, 800 In Deem
Der, 1874: compounded annually at ;
per cent. would amount to 81, Sp1, 027;
and compounded annually at 8 per cent.
would amount to $6,4l1,120. 1t there
fore viii be seen that the. present
value of the states interest in the
property is very small. In view OF the
States course with respect TO taxation.
hereinafter mentioned, II should he en-
tirely waived.
EXEMPTION FROM TAXATION.
BY the charter the State waived all
taxation on the waterway and neces-
sary appurtenances of the Canal, and
stood by its contract until 1886. when
1t began to assess this property under
the new Railroad n Canal Tax Act.
The Canal Company protested from
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