Perth Amboy evening news., 1924-07-26
Court Fight on Funds,
Mayor DOnneIIy Says
Declares Commerce Board
Decided to Resort to Liti-
cation to Get Money

Although J. Spencer Smith, presi-
dent of the State Board of Commerce
and Navigation, made statement
earlier this week which he said no
legal action will be instituted by that
body to obtain money which the at
torney general has authorized the
comptroller to pay to the State De-
partmept of Conservation and De-
velopment. Mayor Frederick w. Dom
nelly, of Trenton, in a letter to As
semblyman Harold G. Hoffman,
states that the commerce board has
decided to resort to litigation. This
will be done, he says, in order to
protect the interests of the ship
canal project. which will connect
Morgan On the Raritan with Borden
town on the Delaware, so that the
commerce and navigation depart
ment can go ahead with the acquisi-
tion of the necessary right of way
for the canal.
The letter to Assembltyman Hoff-
man from Mayor Donnelly was writ
ten on Thursday indicating that the
commerce board has either changed
It's mind as to it's procedure in this
case or is undecided just what to
do.
When the Lehigh Valley Railroad
Company abandoned the Morris
Canal it promised to pay over $780,
900 to the state. The first payment,
$350,000 has been made and the de-
partment of conservation has re-
quested this amount to be spent in
dismantling the old canal locks. The
commerce department maintained II
was to secure all of the canal aban-
donment funds for use in buying the
new intra coastal ship canal right
of way.
The attorney general had upheld
the claim of the conservation board
and instructed the comptroller to
honor that departments requisition
for the $350.000 received by the
state from the railroad.
The commerce department claims
1t should receive the canal moneys
and Is now apparently trying to de-
eide whether or not to take some
kind of court action which would
restrain the comptroller from giving
the canal founds to the conservation
department.
President Smith. in statement
Thursday. said there would be no
legal fight and that the commerce
department would go before the leg
islature and ask an Appropriation.
Mayor Donnelly's letter. written the
same day. says the commerce de-
partment at a recent conference,
which he attended, decided to re-
sort to litigation.
AssemblymaD Hoffman. who in
troduced the ship canal bill. has
written TO all members of the COM
merce board asking them to use
their efforts to keep the money for
the right of way purposes and ex-
pressing his surprise at the attorney
generals opinion. Assent blyman
Hoffman points out that 1t was
clearly the intention of the legisla-
ture to protect the canal abandon
ment funds for use on the new ship
canal when an amendment was add
ed to the Morris canal fund bill at
the last session of the legislature.
Mayor Donnelly's letter follows:
Trenton, N. J.. July "a, 1924.
"Assemblyman Harold G. Hoffman,
South Amboy, N. j.,
Dear Sir:
You undoubtedly are familiar
with the recent developments which
would seem to initiate against early
success of the New Jersey Ship
Canal project. I was dumbfounded
when L heard the attorney general
had ruled that the claim of the
commission of conservation and de-
velopment superseded the priority
rights of the ship canal.
/ 81 was recently in conference with
members of the commission on
commerce and navigation. They
have decided to resort to litigation
in order to protect the interests of
the canal project so that we can go
ahead with the requisition of the
right of way. The commerce COM
mission has requested the state
comptroller for $350,000 to carry on
this work.
"Please use your influence with
members of the commission on conf
merce and navigation asking them
to exert their best efforts to safe
guard the Morris canal funds for
our project. Also take any other
steps that you deem advisable in
this matter.
Yours sincerely,
Frederick d. Donnelly, Mayor"
Connecticut Service Station. Garretson