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

- 49, 6E
property of this State"
II was a difficult work. Boats had to
be lifted 300 feet. to the ridge on which
Hopatcong Is located, and again let
down to the sea level. Many inclined
planes and locks were used for this
purpose, Shortly before the granting
Of the charter Anthracite coal had been
discovered on the Lehigh River in
Pennsylvania and It's value was begin
ming to be Understood. There was
no steam railroad on the globe. The
Erie Canal was only half built. other
canals were being designed or built
in Pennsylvania Virginia, Massachu-
setts and Ohio as the best known
method. of overland freight t%ransporta-
ton.
In 1928 the charter was amended al
lowing the Company to extend the
Canal through 10 Jersey City. The
Canal was Actually opened for business
from the Delaware to the Passaic in
1881. and the extension TO Jersey
City was opened in 1885. The
scheme contemplated that the Canal
Company by 81 years use of spe-
cial banding powers n by about
1873 years use of canal powers would be
ablo to recoup its capital with profits
and to turn the Canal over to the State.
The plan was similar to the plan lately
adopted by the City Of New York n
giving a corporation power to build and
operate the subway. The Company had
a very small income at hrst; failed in
1871; was reorganized in 1874. and the
Canal enlarged and deepened to nve
feet in 1866. It's total cost was over five
Vnillinn do1ia 40 onIuFnad ~ wa a do
signed by the engineers to have n car
rying capacity of one million tons per
year each way. It's business increased
gradually until 1856, In which year
1t carried $3.50. go tons--the greatest
amount It aver c~arried-its gross earn
lngs In that year being 1915, $50. There
after it's tonnage rapidly fell off and its
earnings still more rapidly. freight
rates having decreased; SO that in 1870
its tonnage was 707,57 and it's eernings
only 1891, 549. In 1877 its gross revenues
failed to pay operating expenses, and
the business has ever since dwindled In
tonnage and still more In revenue until
the total amount is only nominal. It
has never paid cost of operation since
1876.
The reasons for this decline are thus
stated in the report Of Governors
werts, driggs and Voorhees, made in
1905:
1.-The competition by rail appears
to have about entirely eliminated
the revenue received from the
transportation OF ores, which was
formerly n large and profitable por-
ton of the business of the Canal.
and has also practically eliminated
tho carriage of miscellaneous freight
n to have left nothing for the
Canal TO do, except to carry such
coal as ma be trans-shipped into
its boats at Phillipsburg. .
Practically of late years, the Canal
has dope no business of any con-
sequence except the transportation
of such coal as the Lehigh Valley
Railroad Company has reshipped
from its cars to the boats at Phil
lipsburg." (Report, PIP. 35, $50
The Commission adds;
Ownership of the canal as a
canal would be of no value to the
state"
The Canal ~Company's power and
duty, as contained in its charter, were
to provide a waterway precisely as a
toll % is provided, that others might
move their vehicles thereon; but not to
provide or operate boats, and for a time
the Canal Company owned no boats
whatever. But no freight boats of n
other persons or corporations have
offered to go through the Canal for
about sixteen years, SO that not a ton
of freight would move on the Canal
to-day but for the fact that the Canal
Company built boats and bought mules
and began itself to conduct transpor-
tation on the Canal.
RUIN OF CANAL BY RAILROAD
COMPETITION.
The Canal was never financially sue
cessful, except for a few years from
about 1852 to about 1856. 1t paid divl-
dends during that period but some OF
those were not cash but scrip dividends,
the scrip becoming q debt of the Canal
Company which had to be paid by the
Lessee long afterwards. The reason
is quite plain. While the charter was
being passed, George Stephenson was
perfecting the invention of a locomo-
tive, and the Stockton & Darlington
railroad in England was opened, with
steam transportation, min months after
the CaLal was chartered. Railroad de-
velopment thereupon became so rapid.
that in 1880, a year before the CanaI
was opened for use, the State of New
Jersey had chartered the Camden a.
Amboy Railroad Company. and there
after proceeded quickly to charter sew
eral others. The Morris & Essex Rail-
road, paralleling the Canal from end 70
end, was chartered in 1885, one year
before the Canal was opened to Jersey
City. Within ten years after the chat
tering of h Canal the bright expecta.
lions with which the charter had been
taken began to be disappointed by this
new n better method of transporta-
ton. The Directors annua reports
show the constantly growing stress OF
this competition. After steel rails were
invented and put in use in the sixties,
and the Lackawanna Railroad com
pleted through to tidewater, and the
Central Railroad Of New Jersey built,
freights fell TO a point which made
navigation on the Canal perfectly hope
less. \
When 1t is remembered that the
largest boat on the Canal carries but
seventy tons and consists of two sec
,tions, which must be separated at
twenty-five different inclined planes
and pass through more than thirty
locks to get over the mountains from
A.. Mia ~ 20 tho II1tdoou ora that