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

4dCohAhll - OH PNtAdAAt6 III IN 0QDItliiG
Court of the United States. The State
does not deny the contract, but claims
that because the tax is to be paid by
the Isehigh Valley Railroad Company
instead of by the Morris Canal Com
pany. the privilege of exemption Is
gone, and yet the State claims full
benefits on its side, TO wit, the revertar
of the property in 1874. 1t even claims
the right to reverter of the Big Basin.
There certainly Is no fairness in this.
That the Lessee should be compelled
to keep up the obsolete canal, which is
not only useless but TO many people
offensive and objectionable, and to
pay taxes pon 1t contrary to
its contract, besides spending a vast
sum each year In maintaining this
worthless property. Is truly a great
hardship and n which the managers
believe the people OF the State. when
they understand the facts, will not
justify. TIL economic waste of such p
course is positively wrong. The Lessee
In the forty years since 1871 has paid
out S10,57S. 67O.21 in excess OF all that
it has received from the earnings OF the
Canal. and it has lone its best to MAKE
the Canal pay. 1t cannot be made to
pay unless railroads are abandoned.
- 49, - 11IA1I kAAO " 6kGA6 u AAiO Z
at the east, 1t reaches no ~navigabla
waters at the west. 1t covers but a
short haul; and its capacity is SO small
as to be positively ridiculous at t1s
present day. The managers under
stand perfectly we'll that certain. great
ship canals connecting important waters
may be made. profitable. although
even the Erie Canal, three hundred
miles long, and connecting the Lakes
with the hudson River, became
so Improbable that the State
abandoned all tolls upon 1t, and 1t has
been maintained at enormou annual
loss for the last twenty-five years.
The freights upon it have dwindIed
from more than thirteen million tons
to about four million tons per annum
and the State OF New York is now ex-
pending one hundred million dollars
to increase its depth to twelve feet,
in the desperate effort to attempt
freights to use tan experiment still
exceedingly doubtful. The Morris
Canal. a trivial affair in size, n hun
dred miles In length, climbing over
great hills and reaching nowhere. IS
an utterly hopeless proposition. No
amount of expenditure can be con-
ceived of to make it anything but a
dead loss. It's only value is its salvage
value, which may be obtained by judi
cious sale OF its fragments for other
uses. It's owners ask nothing from the
State of New Jersey but the power 10
abandon what everybody in the State
wants abandoned-this useless, out
grown ditch.
The State has not In the past p
preached this question from the view
point or meeting Its contract obliga
tions, but has, Notwithstanding the ex-
emption from taxation provided by the
charter, assessed taxes against the
property since 1884, amounting to $3.50
102.4S, the right of which the Lessee
has been compelled 10 litigate, and the
question is now before the Supreme
Court OF the United States. And not
w~ithstanding the fact that the Rail-
road Company fully complied with all
legal requirements and received from
the State q deed, under the Great Seal
of the State. OF the Big Basin, It has
been compelled to defend its rights in
the Court and the matter is still in
allegiance. This, however, does not en-
ter into the question of the abandon
ment OF navigation on the Morris
Canal, but Is simply quoted as an ex-
ample of the injustice that in many
instances has attended the present at
tack upon corporations. The public
mind has been confused by misleading
statements and sensational publiea-
lions.
The Railroad Company has held back
nothing with respect 10 the property.
and 1t has nothing to conceal with
respect to it. It is to be regretted that
agitation or the subject by certain
parties and newspapers, without a full
understanding of the facts, has hereto
fore served to mislead the public IN
regard to what is merely a simple bust
ness proposition, and has Fendered II
practically impossible to obtain a fair
hearing. although everything above
stated was developed by a serious re-
port over the signatures of three ex-
Governors of the State six years ago;
but the Lehlgh Valley Railroad Com
pany still believes that a hearing may
be had and that the Legislature, when
they fully understand the matter, will
rise above the senseless clamor that
has been raised and permit the passage
Of a bin in the interests of the State.
OF its water supply and OF the
stockholders of the Canal Company, 10
whom the state owes at least good
faith. The investors In the canal pro
jCNA AbiAlAAbAbDAk INST ditQ ldSl luilN SLY
million dollers to the enterprise. They
received return for Il few years only.
On the first failure. their holdings
were cut down TO half of the former
amount. The losses of the Lehigh Val
ley Railroad Company under its lease
are still more %grievous. These losses
grow primarily out of the profound
change in methods of transportation
involved in the invention of steam rail
roads, a change which none could have
foreseen, The investors must bear
their loss, but there is no propriety in
their losses being exaggerated and In
creased by the continued listening TO
the silly cries of persons uniformed as
TO the facts and having no good pur-
pose to serve In the interests of the
public or any legitimate interest.
The Lehigh Valley Railroad Company
asks that the Legislature pass a bill
substantially as recommended by the
Commission OF Governors, permitting
the abandonment Of navigation on the
Canal and the sale OF the remaining
fragments OF property for the payment
of the debts of the Canal Company and
the stockholders, as far as the money
will extend, and, If other conditions
are mazda SatisfaotorV offers 70 convey