Year: 1862

own clLiHe0Ss


would respectful urge upon the Le-
gislature the assumption and payment Of
this tax By our State, for two reasons:-
First. The innovation of Government tax
collectors among our people would be dis.
tasteful to our citizens, who would un-
doubtedly much prefer to pay the tax to
our own collectors IN the usual msnner.
Secondly. Because the adoption OF that
course will save about three hundred thou-
sand dollars to the State, as an allowance
Of fifteen per cent is made By the Act to
all States who will assume the collection
of said tax.


Under the supposition that the State
will assume the tax, would respectfully
suggest q mode by which our citizens may
be relieved from the payment of i. for the
couiDg year. By a proviso in the SD
section of tie Act aforesaid, it is allowed
that this tax may be "paid aud satisfied
in whole or in pert by the release Of sny
State duly executed to the United States,
of any liquidated and determined claim
Of such State of equal amount against the
United States" 1t is further provided
"that in case of such release, State shall
be allowed the same abatement Of the a-
mount of such tax as would be allowed in
case of the payment Of the sane in mon.
ey.


would respectfully propose that the
claim of our State against the General
Government for military expenses be "de-
ternined" as soon as it can be done, and
that the Legislature shall authorize . re-
lease to be made of such claim to pay the
amount Of our State tax aforesaid.


This would relieve US from imposing
this tax upon our citizens for the present
year, and it is to be hoped that By the
time it would be necessary to levy such
tax for any succeeding year, that the ex-
isting war and rebellion may be crushed
out and the general business Of the eoun-
try will have recovered from its present
depression and financial embarrassment.
and our citizens be better able to sustain
the burtben of such tax.


In this connection I cannot but express
the hope that our Representatives in Con-
gress may be requested By the Legislature
to take such action as shall put the ex-
penses of this unholy war and rebellion
upon the traitors who commenced and are
now sustaining it; that they be requested
ted to support such measures IN Congress
as shall authorize the seizure and confis-
cation so far as it can be done constitu-
tionally. OF the property of the rebels en-
gagged in this rebellion, to pay the war
debt Of the Government, and thus relieve
the loyal citizens and their children from
the onorous burden of taxation which they
will otherwise have to sustain for years
to come.


The State is holder of bonds of the
Wyoming Canal Company to the amount
of S2sl, 900 90. Upon the bonds the in.
terest was punctually paid up to the 18th
of January last. In July the company
defaultcd in its interest due at that time
and it yet remains unpaid. Being inform
ed that some action vas about to be taken
by the bondholders to reorganize the COM
pany by sale of the canals und er the mort.
gage | addressed letter to the trustees
Of the mortgage on the 3Oth of September,
requesting that they would take no action
in reference to sale without first notify
ing NE as the representative of the inter-
est of the State in the matter. They re-
ferred my letter to G. FL. Clark, Esq, At
torney for the bond holders, who inform
ed me by letter that he was "fully au-
thorized by the large bondholder to treat
With the State for the bonds she holds.
and that it was bis and their desire that
the interts Of the State should be proper.
ly protected to the same extent as other
bondholders" l subsequently had on in
terview with Mr.. Clark, and ascertained
from him that in consequence of suits
having been Instituted against the compa-
ny, receiver had been appointed, and 3
plan matured between stock and bond
holders to reorganize the company, and
that application would be made to the
Court to grant decree of sale The ac-
ton contemplated would result in a sub
stitution of stock for the bonds held BY
the State, and a reduction or loss Of a.
bout ten per cent. Of the amount of her
| DOOOes W oCb sOE tuC Okubc th
the 10 after, for the reason, that | had no
authority to compromise or make any
settlement which would not realize to the
State the full amount of her claim. Un-
der these circumstances, would respect
fully recommend immediate action upon
the part of the Legislature to protect the
interests of the State in this matter.
! At the last session of the Legislature
an act was passed "to change the name
OF the Sudbury and Eric Railroad Com
pauy and to facilitate the completion of q
railroad from Sunbury to Erie"


All the provisions of this act binding
upon either State or Company relating to
the issuing, delivery, and cancellation
of bonds, have been fulfilled By the res.
pectise parties, and the State now holds
oil the bonds Of the company IS specified
in said act. excepting one million Of the
bonds authorised by the second section,
| which were delivered to the Pbiladelphis
aud Erie Railroad company on the stt
!, Of Nav last. under a warrant of the Gov