F -32 4- >2) a55» S30 :3 lLlBRARY0FC0NrTRE8S.|^ UNITED STATES UE AMERICA. | 3> J>2> ^ XJOXS ^i^ii '■■•>^^^/ -59>';v# >m^=^^ 5» 1>J>" ^j^^y^ W^3^ r^ ^\j j)^ r' y^j) yr - 9:2l>X)->)a)>^■^"■ .:l>>i ■ y6(» 'z » » >j> > 1 ) ? ' x'^^ ^.^ >0> ^ >3>= > ^ > >jr> >>7) ^ :>> ^ >^ AN ADDMESS TO THE PEOPLE OF SUFFOLK, UPON THE PUBLIC AFFAIRS OF THE STATE. / J— J%iy ^ ^ ^^' On (J^ As so much has been said for more than three years past about the State affairs and Governor Seward's project for a forty million debt, and the state tax which must be the natural result, and about the Canal and Railroad Companies obtaining money upon the credit of the state, I presume there are many persons who would be glad to see a plain statement of these affairs from me, as they have found my account of the national affairs correct, though they have not of late years paid much attention to them. To such persons I particularly address myself, and I will endeavour to put the subject in s(5 plain a form that all can understand it, even if they have never seen the state account before. Such is the effect produced by party spirit and the names of party, that it seems to be necessary at this time for me to speak of it, Silah B. Strong, Esq., at the Mass Meeting at Patchogue, in 1840, the day after the Whigs had their meeting there, stated in his opening of the meeting, "Yesterday you had Federalism, to-day you will have Republicanism," For what other purpose ivas this said than to keep up the ill-feeling that existed about fifty years ago \ The effect pro- duced by this is to destroy confidence among the people, and thereby great injury is sustained, as many persons do not appear disposed to put much confidence in any statement that is made of the state or national affairs by one who is pohtically opposed to them, while on any other subject their word or statement is not doubted. And as it is said that I support the Federal party, some of my political opponents appear to reject my statements upon that account. Let us examine this, and see whether I or ray opponents belong to the Federal party, and to do this we must inquire into our leaders — it is to them we look up to and follow. As the old Federals are gone to their graves T had rather they might there remain in peace, but the necessity of the case induces me to speak of them now. Our only course appears to be to look after their descendants who have the old Federal B principles in them, which they have received from the instruction of their fathers. Party feeling was 'strong in times past, and it is not to be thought strange that these priticiples which were taught to them when young sliould still remain with them. It appears that we are all controlled by a few men, as we see in a great or small meeting, there are but few who make speeches and pro- pose the resolutions, which the people agree to support. Is not this the work of a few learned men 'I Now let us examine where the .descendants of the old Federals are to be found. Suppose a great meeting of my opponents was called in the County of Suffolk, and all the principal men should attend — Silah B Strong, Esq., Charles A. Fioycl, Esq., Richard Udall, Esq., and Judge Halsey. They would be there, I presume, and make nearly all the speeches, and present the resolutions to be passed by the meeting, as they are the principal men in the party. I mean men who put themselves forward and make speeches. I know that there are other men, but these would, to speak plain and honestly, do the most of the business. Judge Halsey's father, I believe, was a Republican, and if he was, then of course Judge Halsey was also a Republican. But as to Silah B. Strong, Esq., Chai'les A. Floyd, Esq., Benjamin S. Nichols, Esq., and Richard Udall, Esq., they never had a drop of Republican blood in them, for their fathers were all Federals and rich men, and I presume they were among the principal leaders of the old Federal party. And who can doubt but that their sons were brought up in the old Federal school. They were all warm Federals, (except Richard Udall, Esq., I can only say as to him that his father was a Federal, and of course h^ is in principle), and until a person can show me how tli^y have changed I shall call them Federals (for what is bred in the bone, don't come out of the flesh) ; that is, so long as I am misrepresented by saying that I belong to the Federal party. There you see that four out of five of these principal men are the descendants of Federals, and can it be expected, if Judge Halsey has retained his Republican principles, that he could resist the influence of these four learned men. Such men to harass the dead to aid them to obtain an office calls to ray mind thfc case of Absalom, who traduced the character of his father that he might obtain his place, and he also jjrofessed a great regard for the people and I'eceived his reward. Now for the principal leaders of the party I act with, who have taken much interest in the affairs since I have been a politician. There is Abraham J. Rose, Esq., Samuel Gardner, Esq., and Dr. Nathaniel Miller — these are the principal men among the leaders of the party to which I belong, and there never was a drop of blood in them that was not Republican. Their fathers were of the old Republican school, as it was c;illed. This account of facts, I presume, will appear strange to many persons who have thought they were following true Republicans, when in fact there was only one-fifth of them that weie descendants of Republicans, I hope that this will have a tendency to show the folly of suffering the mere name of a party to have any influence over us. Robert E. Denniston, Esq., who is a Senator of the State of New York, is also a Federal, and by the vote of said Silah B. Strong and party, he received his office in 1840. Abraham Brochee, Esq., who is a Senator of the State of New York, is also a Federal, and by the vote of said Silah B. Strong and party received his office in 184 1. Here we have two state senators, a member of Congress, Charles A. Floyd, Esq., and Richard Udall, Esq., who was last winter a Member of the Assembly, and they obtained their offices in about two years, and from appearance they obtain many votes by whining over the name of Republican. If they can enjoy their offices obtained by such means they must have a good relish for office. Hon. A. Vanderpool of Kinderhook, late Member of Congress, is a Federal, and his father was also a Federal. Levi Woodbury is also a Federal — you know he was Secretary of the Treasury during the presidency both of General Jackson and Mr. Van Buren, and is now a United States senator. The Hon. James Buchanan, of Pennsylvania, is a Federal ; he is also a United States senator. The Hon. Henry Clay, of Kentucky, late senator of the United States, who is now before the people as a candidate for the Presidency, is a Republican, and always was. By this you see that three out of four of these principal men of the nation are Federals, and they are all acting with the party that said. Silah B. Strong is with. Henry Clay is of the party I act with. I might give many more names of the Federals of that party, if it was necessary to do any more to show that it is not true to assert that I belong to the old Federal party. The foregoing remarks appear to have been forced upon me by the circumstances of the case, and I hope, for the good of the nation, they will have a tendency to put a stop to the attempts to injure one party, or to raise another, by the use of the old party names. I shall now proceed to speak of the affairs of the State, from the information I obtained from the Annual Report, No. 18, in Assembly, January 18th, 1842, of the Commissioners of the Canal Fund. *' Where money is borrowed for the use of the State, for internal iraprovemenls, the state generally agrees to keep the principal about twenty years." " The interest is to be paid as it is due, and when the state has money to spare, and the money it has borrowed is not yet due, the spared money is set aside and hired out at interest, in order that the state may be prepared to pay the debt when the time comes that the borrowed money is due." A similar case I will state. The Erie and Champlain Canal was commenced in 1817, and the state owes a debt for the building of these canals of two million twenty-one thousand and thirty-seven dollars, and it is not due until 1845 ; and the State has a sufficient sum set aside to pay that debt when it becomes due in 1845, as I will show by an extract from Governor Marcy's Annual Message to the Legislature, January 2, 1838. Speaking of the debt of the Erie and Champlain Canal, he says : — " The second instalment of the Erie and Champlain Canal debt is payable in 1845, and amounts to ^2,215,737 50. TheTmeans for satis- fying this debt are provided by the investment of the surplus canal funds, and it may, therefore, in all financial arrangements be considered as paid." Since that time there has been paid of this debt one hundred and ninety-four thousand seven hundred dollars and twenty-five cents. The comptroller, (speaking of this debt) in his report to the Assembly, January, 8, 1842, after showing the debt of the State, including this debt of the Erie and Champlain Canal, says : — " Deduct from this amount the Erie and Champlain Canal debt, due in 1845, for which ample funds are provided and set apart, $2,021,037 25." By this it is shown, by the late Governor Maicy and the Comptroller, that this debt may be considered as paid ; and when I give an account of the debt of the State, I shall include the debt that the State owes for the Erie and Champlain Canal, and all the debt that has been produced by companies obtaining money upon the credit of the State, up to Sep- tember 30, 1841 ; (that is, to the time the account is made out for the year), — then to show the amount the state actually owed, upon its own account, to September 30, 1841, I deduct the sum the State owes for the Erie and Champlain Canal, and all the money tha| has been obtained upon the credit of the State, except the sum of five hundred and fifteen thousand seven hundred dollars, which was obtained by the Canajoharie, and Catskill, Ithaca and Owego Railroad Companies, who failed to pay their interest, and it was paid by the State ; and the officer in making up the account, added this sum, obtained by these companies, to the debt of the State. These roads were sold a few months past, and as they did not bring but a small sum, the State will lose nearly all the money these companies obtained upon its credit. I now go on to give an account of the state affairs, and to do that I present extracts from the Annual Report of the Comptroller, John A. Collier, (Document No. 15, in Assembly, January 8, 1842). I will give the statement both in writing and in figures for the accom- modation of all. DEBTS OF THE STATE. The whole amount of the debts of the State, includ- ing that which Railroad and Canal Companies have obtained upon the credit of the State, and the debt the State owes for the Erie and Champlain Canals up to September 30th, 1841, is twenty-three million, six hun- dred and fifty-two thousand, two hundred sixty-seven dollars, ninety-one cents, except the sum of two hun- dred thousand dollars that was obtained for a short time, and has been paid since Sept, 30th, 1841. . . $23,652,267, 91 Deduct from this amount the sum of two million, twenty-one thousand and thirty-seven dollars, twenty- live cents, that we owe for the Erie and Champlain Canals, due in 1845 $2,021,037, 25 $21,631,230, 66 For which, as before stated, we have ample funds provided and setapart to pay this debt. Deduct also, three million, seven hundred and twenty thousand dollars that Railroad and Canal Companies have obtained upon the credit of the State. . . $3,720,000, 00 The Comptroller, after making out the account of the State, with the proper deductions, makes the gross amount to be $17,911,230, 66 He also states the gi'oss amount of annual interest upon debt, including all the stocks and temporary loans, to be $919,704, 36 By this you see the whole amount of the debt of the State, according to the account given of it by the Comptroller, up to September 30th, 1841, was seventeen million, nine hundred and eleven thousand, two hundred and thirty dollars, including the sum of five hundred and fifteen thousand, seven hundred dollars, which the Canajoharie, and Catskill, Ithaca and Owego Railroad Companies obtained upon the credit of the State. You also see the interest upon the debt is nine hundred and nine- teen thousand, seven hundred and four dollars, thirty-six cents. CANAL REVENUE. The Comptroller's Statement of the Canal Revenue. The amount of revenues derived from tolls upon all the canals, and from other resources belonging to the Canal Fund, for the year ending September 30th, 1841, is as follows : — Receipts. For tolls, $1,988,020 40 Interests on investments, loans and depo- sites, 137,866 34 Sale of buildings, - 1,194 75 Rent of surplus water, 1,878 86 $2,128,960 35 1 * By this, you see that the Canal Revenue last year was two million, one hundred and twenty-eight thousand, nine hundred andsixty dollars, and thirty-five cents, and that the tolls from the canals was one million, nine hundred and eighty-eight thousand and twenty dol- lars, and forty cents. Payments, Ordinary and Extraordinary. The gross amount paid for interest on loans, superin- tendents of repairs, collectors and inspectors of tolls, canal commissioners, repairs of damages, and all incidental expenses, for the year ending 30th Sep- tember, 1841, was, $1,323,209 29 These several charges are to be deducted out of the above proceeds of the Canal Revenue, and the whole amount is, one million, three hundred and twenty-three thou- sand, two hundred and nine dollars, and twenty-nine cents. The Comptroller states — Nett proceeds of the Canal Revenues, ----■• $805,851 06 Deduct amount paid to the Treasury of the State on account of incidental expenses of the Government, - 200,000 00 Leaves of nett proceeds for the year ending 30th Septem- ber, 1840, $605,851 06 The net proceeds of canal revenue for the past year would pay the interest upon the existing debt, and the interest at 6 per cent, upon an additional debt of $10,000,000 ; or if all the contingent liabilities of the State for loans of its credit were thrown upon the State, it would still pay the interest upon the whole debt, contribute its annual $200,000 towards the support of the government, and have about $400,000 to spare, applicable to carrying on the public v/orks, or to the interest upon a new additional loan for that purpose, of six or seven millions of dollars. I hope you will examine this account, and the remarks of the officer upon the proceeds of the Canal Revenue. It shows that the canal revenues will pay the interest upon the State debt, and it would pay the interest, if the State had it to pay, upon all the money that companies have obtained upon its credit, and two hundred thousand dollars towards the State affairs. And after making all these deductions, the people have four hundred thousand dollars to use as they think proper. This prosperous account of the State ought to produce a pleasant sensation in the mind of every person. I will now present to your notice the whole amount of the debt of the State as it was given by the Comptroller in his report, January 3d, 1839. It amounted, September 30th, 1838, to $11,256,151 4. This sum includes the debt which the State owes for the Erie and Champlain Canal, and the money that was borrowed to construct the other canals. And I also give an account of the debt as it was stated by the Comp- troller in his report, January 1st, 1841, — it amounted, September 30th 1840, to $15,599,609 68. From this should be deducted the amount of debt for the Erie and Charaplain Canal, for the payment of which a sufficient sum is set apart and invested — ^2,064,808 10. He also states : The credit of the State has been loaned to sundry corporations and stocks issued by the Comptroller, to the amount of $2,845,700 00 That it may be understood by every person, I think proper to state that the accounts are made out for the year on September 30th, and sent to the Assembly in January. We will now examine the propriety of the people of Long Island paying a tax to build these canals. If you inquire of the boatmen what has been the effect of coal on the price of wood, they, I presume, will say it has reduced it fifty per cent. It would be rather a hard case to tax those who send wood to market to build canals for the purpose of bringing coals to market, which would reduce the price of their wood fifty per cent,, and enrich those who own the coal. Great quantities of grain go to market by the canals that would scarcely pay the expenses if it were not to go by them, and by the aid of the canals it goes to market almost as cheap as you get your grain to New York. I am not complaining because grain is low, but I see no reason that the Long Island farmers should build canals for farmers in the west. If you were taxed to build them houses you would lose the money and they would only gain the value of the houses, but in this case you would lose your money, and the consequence is that it reduces the price of your grain and farms, and raises the price of their farms, lying in the vicinity of the canals, four or five times the value they were before the canals were built. I am for internal improvement, but opposed to taxing and reduc- ing the value of the property in one part of the state for the benefit of the other. I present an extract from the remarks of Mr. Dickinson in the Senate of New York, on the resolutions relative to the inviolability of the Pub- lic Faith and Credit of the State, that you may see his opinion in refer- ence to taxing those who live at so great a distance from the canals who do not receive any benefit from the use of them ; and to show the great increase in the value of the property lying in the vicinity of the canals since the Erie canal was completed in 1825 ; and also to show that the property in those counties lying at so great a distance from the canals, the people being unable to use them, has risen to but a small amount. (Reported for the Evening Jovtrnal.) Mr. Dickinson states, in Senate, Friday, January 14th, 1842 : — " The Senator said yesterday that a direct tax was a true financial policy. That it bore more gently on the poor and labouring man. Let us examine this question a little and see how it will work. I shall not theorize upon the sobject — I leave that to others, but I will come to practice, and put that side by side with the gentleman's theory, and let the people judge between the two. For an illustration of the practical working of" this direct tax scheme, let me call the senator's attention to the comparative estimated value of the real and personal property in different counties of this state for the last fifteen years. Perhaps we can judge something from that whether we ought to resort to direct taxation, or the revenues of the canals, for means to carry on the government. I invite the senator's attention to the following items which I take from an official source : I will first take a few counties which have received no benefit from the Erie canal. Clinton County. — Value of real and personal property in 1825, when the Erie canal was completed, $!l, 584,905 Do. do. do. in 1840, 1,869,629 or nearly the same. Columbia Co. — Valuation in 1825, $9,670,303 Do. do. in 1840, only 9,010,320 being an actual decrease since the completion of the Erie canal. Cortland Co. — Valuation in 1825, $2,131,294 Do. do. in 1840, 2,370,720 or nearly the same. Delaware Co. — Valuation in 1S25, $3,053,705 Do. do. in 1840, 3,533,052 Greene Co. — Valuation in 1825, $3,524,460 Do. do. in 1840, only 3,121,104 a large decrease since the Erie canal went into operation. Otsego Co. — Valuation in 1825, $5,559,901 Do. do. in 1840, 5,875,784 Schenectady County, too, is one which has not received much benefit from the Ei'ie canal. Let us see how that county stands. The valuation of real and jiersonal property in 1S25, was $2,032,781 Do. do. in 1840, it was but 2,823,785 Schoharie Co. — Valuation in 1825, - $2,559,321 Do. do. in 1840, only 2,172,631 being a decrease since the completion of the Erie canal. Warren Co.— Valuation in 1825, $998,823 Do. do. in 1840, 1,075,552 Here is the result of a few sequestered counties in this State, which have received no benefit from the Erie canal. Now let us look at the other side of the jjicture. I will first take the city of New York, to which the Erie canal has proved a mine of wealth. The valuation of real and personal property in that city in 1825, was $101,160,046 Do. do. do. in 1840, it was 252,194,920 being an increase of more than one hundred and fifty millions of dollars. Cayuga Co.— Valuation in 1825, $5,259,093 Do. do. in 1840, 12,990,028 an increase larger than the entire cost of the Erie and Champlain canals. Chenango Co.— Valuation in 1825, $3,521,910 since which time the Chenango canal has been constructed, and the valuation has increased rather more than a million, or to §4,603,996 Erie Co.— Valuation in 1825, $2,382,670 Do. do. in 1840, 13,257,044 an increase of nearly eleven millions of dollars. M\Disox Co.— Valuation in 1825, 84,189,118 "Do. do. in 1840, 7,310,043 an increase of more than three millions. Monroe Co. — Valuation in 1825, $4,831,565 Do. do. in 1840, 17,134,444 an increase over twelve millions, or nearly double the original cost of the Erie canal. Niagara Co.— Valuation in 1825, $1,266,668 Do. do. in 1840, 5,306,107 an increase of more than four millions. Oneida Co. —Valuation in 1825, $8,554,490 Do. do. in 1840, 12,224,085 Onondaga Co. — Valuation in 1825, 85,004,152 Do. do. in 1840, ^ 17,083,186 an increase of more than twelve millions, nearly twice the cost of the Erie canal. Orleans Co.— Valuation in 1825, 81,240,994 Do. do. in 1840, 5,851,861 nearly a four-fold increase derived from the Erie canaL V/ayne Co. — The residence of the senator from the seventh (Mr. Sherwood) — let us see what the Erie canal has done for her. In 1825, the valuation of the real and personal property in that county was but 82,978,037, but in 1840 it is 83,062,063, an increase of over five millions of dollars — nearly the original cost of the Erie canal in the gentleman's county alone — and that, too, one of the smallest counties in the State." Here we see that the Erie canal has conferred benefits on two or three counties alone, in the increase of their real and personal estate, more than its cost three times over. And shall Delaware and Greene and the iron-bound counties of the north, which have received no benefits from this great improvement, be taxed for the benefit of the other coun- ties which have reaped such a glorious harvest from the Erie canal ? Where is the indirect tax now upon the poor man, about which the senator spoke so much yesterday 1 " All the costs of these improve- ments," he said, " is to come out of the poor and laboring classes." How can that be ] Does not the poor man of the east now get his flour cheaper than before the canal was built ? Is he taxed by bringing pro- visions to him on the canal 1 Is the western man taxed, when he can get more for his produce and thus afford higher wages to his laborers ? Wliere then is your indirect tax ? Is any man compelled to transport his flour and other articles upon the canal ? No ! the canal is there, and he may use it or let it alone, as he pleases. But I ask the senator if his own neighbors do not use the canal 1 And why 1 Because it is a great convenience to them, and they receive more than an equivalent in its use for the tolls which they pay on their produce. How absurd is it, then, to talk about the poor man paying all the cost of the canal ! 10 You see by this account of the valuation of the property taken from public docuirtents the property in the counties lying in the vicinity of the canals has risen to a great amount since the Erie canal was com- pleted in 1825, and it no doubt has been produced by the great saving in the expense, by the use of the canal, in getting the produce to mar- ket, enough to build several canals like the Erie. I will now present an extract from the annual report No. 18, in Assembly, January 8th, 1842, of the Commissioners of the Canal Fund, that you may see their opinion in reference to taxing those who do not receive any benefit from the use of the canals, owing to their living at so great a distance from them, and to show the great addition that can be made to the tolls by the enlargement of the Erie canal. The Commissioners state : — " The saving in the expense of transportation, after the Erie enlarge- ment is completed, is estimated by Messrs. Bouck, Flagg, Dix and other members of the Canal Board, in their report of 1836 (Assembly Doc. No. 9S, p. 11,) at fifty per cent. The expenses of transportation they estimate at twenty per cent, more than the present tolls. If, therefore, it became necessary or expedient to increase the canal revenue, with reference to the more speedy extinguishment of the debt, or for any other purpose, the rate of tolls might be increased fifty per cent., and without adding to the expense of transportation. Thus : suppose the tolls to any given point to be $1,00 And the expense of transportation, 1,20 $2,20 Add to tolls fifty per cent., $1,50 Deduct from expense of transportation fifty per cent., - - - - 60 $2,10 This would add to the canal revenue at a still higher ratio — because while the receipt of tolls would be increased fifty per cent., the expenses chargeable to the Canal Fund would remain the same. Take, for example, the tolls of the past year of navigation, which are upwards of two millions of dollars, the fifty per cent, added to the tolls would increase thenett revenue for the year, one million of dollars. Such addition to the tolls will scarcely be urged, when it comes to be seen and understood that the revenue, as it is, with its steady and cer- tain increase for at least twenty-five years to come, will be abundantly sufficient to extinguish the whole debt within a limited period. But if more revenue were required, we have high authority for saying 11 that the addition to the tariff of tolls would be more just and equitable than to raise the money by a general tax. In the report of Messrs. Young, Wright, Bouck, Flagg, De Witt, Keyser and Seymour, as members of the Canal Board in 1830, (see Legislative Doc. of 1830, No. 291, p. 2,) they say : " A law was passed at the commencement of the canals, imposing a direct tax upon twenty-five miles on each side of these works. This law was based upon the evident principle that the property in the vicinity of the canals was enhanced in value to the amount of the differ- ence between land and water transportation. Owing, however, to the loss and inconvenience which would result from the assessment, collec- tion and payment of this tax, it was never imposed ; and those who have been almost exclusively benefited by these works, having been thus exempted from all taxation, it would seem to be an obvious principle of justice that the whole State should never be subjected to taxation on account of the canals. " It cannot be imagined that the people of this State ever contem- plated, that works which are so principally beneficial in a local and individual point of view, should impose a tax upon the whole commu- nity; and it would, doubtless, be doing great injustice to that portion of our citizens who inhabit the canal sections, to imagine, that they ever supposed that their brethren in other parts of the State, would be subjected to taxation to make or maintain the canals, or to extinguish the debt. " Many have supposed that the construction of the canals has in- creased the value of the property in their vicinity four or five times as much as their cost, or to the amount of forty or fifty millions of dollars. " If this be true, it imposes a triple and quadruple obligation upon the canal sections, to submit to the imposition of such tolls as shall in- demnify the State." I shall now present another extract from the same report out of which I have taken the account of the estate, that you may know the opinion of the Comptroller in reference to raising money by a tax to pay for the canals. He states : While it is not doubted, that the citizens of this State would cheer- fully submit to the imposition of a direct tax, if it should be shown to be necessary to preserve the public faith, or meet the just obligations of the State, yet it may, in the opinion of the Comptroller, be now reason- ably objected : 1st. It is unnecessary. As has been already shown, the canal revenues are abundantly sufficient to pay the interest upon the whole public debt ; and when our public works, now in progress, are completed, will afford a sure sinking fund, which will rapidly extinguish the principal. 12 2d. It is not required for the purpose of securing the confidence of the public creditors. The certain revenue derived from our very model ate tariff of tolls, vf'xW be more satisfactory and more secure than to depend \ipon uncertain and reluctant legislation to impose a tax — a duty always unwholesome, and the law itself liable and likely to be repealed, if the necessity of such a law is not apparent. The time of payment is of less consequence to the capitalist than its certainty ; and if a nett and increasing revenue of $6,000,000 will not satisfy the creditor, would he be likely to be satisfied by a tax that would produce only 5 or $600,000 more, but would still fall short of providing present means to pay the whole debt? 3d. It is the most expensive mode. The revenue arising from tolls can be much the most economically collected. It requires no new tax gatherers, but is received through the hands of officers already appointed, with no additional expense. 4th. It is the most unwelcome and oppressive form. The tax gatherer appears without warning, and consults no one's convenience but his own, and the tax payer must obey the summons, sometimes at ruinous sacrifices. The payment of tolls is not coercive but voluntary, and the payer, in parting with his money, receives more than its equivalent in the use of the improvement, 5th. It would fall exclusively upon our ovm citizens. All who use the canal, including all emigrants and citizens of other States, now contri- bute largely, and may contribute the greatest proportion, of the tolls, and are nevertheless greatly accommodated and profited by the facilities it affords them. 6th. It would he inequitable and ^injust. The expenses of the improve- ment should, as far as practicable, be paid mostly by those who profit most by it. Wherefore should the citizens of Delaware, Suffolk, and Franklin be taxed for canals, in the benefit of which they not only do not participate, but which, indeed, may have a tendency to draw busi- ness from them to the more favoured points ? These several extracts, I presume, will be read with attention ; — they all tend to show that it is not right to tax those who do not receive any benefit from the use of canals, and they also prove that those persons residing in the vicinity of them have received a great benefit from their use, and if it is necessary to raise money for their support, it should be done by increasing the tolls, and not by taxing you and others similarly situated. I will now present a few short extracts from a number of the late Governor Marcy's Annual Message to the Legislatuie, for the purpose of reminding you of what he has said in reference to the enlargement of the Erie Canal and doubling the locks, and appropriating money to 13 the work, together with some short extracts from the Reports of Canal Commissioners, Canal Boards, and Committees of the Assembly, so that you may see what their opinions are in reference to the same subject. To do this, I will make extracts from the Annual Report of the Commissioners of the Canal Fund, No. 18, in Assembly, January 17, 1842. The Commissioners state : The attention of the Legislature was directed to the subject of the enlargement, by Governor Marcy, in his annual message, at the opening of the session of 1834, in the following terms : — " It has already become quite evident that the capacity of the Erie canal will not much longer be adequate to the exigency of the business on it. The improvements which will soon be required, are double locks to facilitate the passage of the boats, and an enlargement of the canal in its width and depth. This subject will probably be presented to you in a communication from the officers having charge of the canals, and it will, undoubtedly, receive from you the attention its great importance demands. " The extent of business on all canals is increased by the facility of transportation, and a reduction of the expenses. By enlarging the capacity of the Erie canal, the cost of transportation will be diminished. The tolls are a considerable part of the expense. This subject has occupied the anxious attention of the Canal Board during the present year ; and some of the beneficial results to which I have alluded, par- ticularly the wide diffusion of the trade into the western and south- western sections of the Union, are justly ascribable to the enlightened views of this board, and their judicious modification of the rates of toll." (Assembly Journal, 1834, p. 21.) " The Canal Commissioners, Messrs. Van Rensselaer, Bouck, Young, Earll, and Hoffman, in their annual report of the same year, (Assembly Documents, 1834, No. 88, p. 4,) speak of the proposed enlargement in the following terms : " About three years will be required to double the locks. In that period considerable increase in the transportation must be expected. It therefore appears proper that double locks should now be authorized on this part of the canal. They would now be useful, and by the pe- riod of the completion will be necessary." — p. 6. In the Annual Message of Governor Marcy, of 1835, (Assembly Journal, 1835, p. 16,) the attention of the Legislature is called to the subject of the enlargement, in the following terms : — " Provision was made, at the last session of the Legislature, for dou- bling the locks on the Erie canal, between Albany and Syracuse. I regret that this measure was not accompanied with another, almost c 1* equally necessary, providing for the enlargement of the capacity of the canal, for I deem it important that the new locks should be made with reference to the latter improvement. As the commissioners have not yet begun to construct them, it is worthy of your consideration whether YOU should not now authorize this enlargement, and direct the new locks to be made in conformity thereto." On the 30th of January, 1835, a special report was made to the Le- gislature by S. Van Rensselaer, Michael Hoffinan, Samuel Young, Wil- liam C. Bouck and Jonas Earll, Jun,, Canal Commissioners, " relative to the improvement of the Erie canal," which will be found in Assem- bly Documents for 1835, No. 143, in which, among other things, the Canal Commissioners say : " The necessity now felt of affording increased capacity to the canal east of Syracuse, will, in a few years, be felt in its whole extent ; the precise period may be disputed, but the event is certain." (p. 9.) " It therefore appears indispensable, that the water of the canal should be deepened and widened, and the locks extended, to make that ample provision for the travel and transportation on this canal contem- plated by the Legislature. By making such an improvement of the canal, the tonnage of the boat could be greatly increased, requiring a smaller number to do the same business. The boat would be deeper in the hold, more spacious, with stronger sides, and would more securely pass the rivers and lakes that extend the canal navigation. In truth, if the canal and boats were enlarged in this manner to double the tonnage now usual, the crews to manage and teams to move the boats would be about the same as now employed on the canal." (p. 11.) " If in the spirit of an enlightened and liberal policy, adequate capa- city should be afforded to the canal, our western brethren will be accom- modated, and their comforts increased, and the revenues of the State will be augmented ; a rich and increasing commerce will excite and reward the industry, enterprise, and skill of our citizens, in agriculture, arts and commerce ; and the State, by affording the utmost facility to that busy intercourse of trade, which improves the moral and social relations of civilized life, will at once confer on its own citizens the most lasting benefits, and on all others, in the only measure in which a bountiful Providence permits States to do them good, the greatest benefits and blessings. Called by position to perform this high and sacred duty, the State will perform it in the spirit of wisdom. The Commissioners therefore respectfully submit to the Legislature that provisions be now made, by law, for all improvements in the canal that the Legislature shall deem necessarj'." This subject was referred to the canal committee of the Assembly,. of which D. Wager, of Oneida, (afterwards a member of the Senate), was chairman, who reported in favor of the proposed enlargement. Hig report will be found in Assembly Document for 1835, No. 254. 15 The following are extracts from Mr. Wager's report : " Increasing the capacity of the canal is necessary to give full effect to the advantages which may be realised from doubling the locks.'' (p. 5.) " Widening and deepening the channel is the only alternative we can I'esort to, and no expense should intimidate us from such a vital mea- sure. It will prove a constant source of wealth and revenue to us and posterity." " The magnitude of the proposed work, and the present crowd ot business upon the canal, make it necessary that it should be com- menced without delay/' " By doubling the locks and increasing the capacity of the canal, so that it will admit boats of 120 tons burthen, will reduce the charges for transportation more than 50 per cent, exclusive of tolls, which will be a reduction of over 25 per cent in the aggregate expense, and the canal will be in a condition to accommodate more than four times the busi- ness. This will be sufficient to meet the demand for a great number of years." (p. 8.) Mr. Wager thereupon reports a bill in relation to the Erie Canal, (Assembly Journal, 1835, p. 321) ; and the bill passed the House (As- sembly Journal, p. 775,) ayes 86, noes 16. In the Senate, the bill passed by an unanimous vote ; ayes 24, the name of Col. Young, who was then a member of the Senate, being among the number ; (see Senate Jouimal, 1835, p. 378;) and the bill being approved by Governor Marcy, became a law. (See Laws of 1835, ch. 274.) By the provisions of this act, the Canal Commissioners were authorized and directed to enlarge and improve the Erie canal, and construct a double set of lift locks therein, as soon as the Canal Board should be of opinion that the public interest required such improvement. The di- mensions of the canal and locks to be determined by the Canal Board. The subject was accordingly brought up and considered by the Canal Board on the 3d day of July, 1835. The following is an extract from the minutes of the Canal Board : Friday, July 3d, 1835. " The Board having taken into consideration the Act entitled * An act in relation to the Erie canal," passed May 11th, 1835, Thereupon, " 1. Resolved, That the public interest requires the enlargement and improvement of the Erie canal, and the construction of a double set of lift locks therein. " 2. Resolved, That the doubling of the locks and the works connected therewith ought to be commenced without delay, and prosecuted with 16 all reasonable diligence, beginning with that portion of the canal be- tween the village of Syracuse and the city of Albany." In Governor Marcy's message, upon the opening of the Legislature of 1836, (Assembly Journal, 1836, p. 20), he speaks of the subject in the following terms : — " Pursuant to the directions of the law passed at the last session of the Legislature, the Canal Board has settled the plan for enlarging the Erie canal. According to this plan, the canal is to be made seven feet deep and seventy feet wide on the surface of the water. All improve- ments now required on the line of this canal, will be made with refer- ence to its enlargement. " Measures have already been taken to change the location of the aqueduct across the Genesee river at Rochester, and to construct the new one on this principle. When this canal is enlarged according to the proposed plan, it is presumed that boats carrying one hundred tons of freight will pass on it with facility. No very accurate estimate has yet been made of the expense of this work ; but it will probably exceed twelve millions of dollars, including damages for individual property ■which must be taken for that purpose." The Canal Board, consisting of Messrs. Van Rensselaer, Bouck, Earll, Bowman, Tracy, Flagg, Dix, Keyser and Campbell, made a special report to the Legislature in relation to the enlargement, on the 26lh Janu- ary, 1836, which will be found in Assembly Doc. of that year. No. 98. The following are extracts from that report : " Another important consideration which is entitled to great weight, in determining the question of time, within which the improvement of the canal should take place, is, that a large canal is not only desirable and beneficial, in reference to the amount of tonnage which may be carried upon it, but because it materially lessens the expense of trans- portation. " This circumstance exerts an important influence in increasing the amount of tonnage on a canal. It creates an accession of business, and consequently enlarges its usefulness to the country through which it passes, in the transportation of coarser and cheaper articles; and extends the business in a relative proportion over a larger district. " The enlargement of the canal and locks to the proposed dimensions, vrill lessen the expense of transportation, exclusive of toll, about 50 per cent. This difference, applied to the business of the past year, assum- ing the aggregate expense of transportation to be 20 per cent greater than the gross amount of tolls, (which is believed to be a low estimate), would be a saving of $826,007 81 ; and in ten years, calculating the same rate of increase to the tolls that has taken place in the passed ten years, it would amount to $12,793,221 30." (p. 10.) 17 " The enlargement of the canal is intimately and necessarily con- nected with the utility of a double set of lift locks, and hence the propriety of commencing the work as soon as practicable, and of prosecuting it with as much diligence as the funds appropriated to this object will admit." (p. 11.) Grov. Marcy in his message to the Legislature of 1838, says : — " The unfinished works of internal improvements, including the en- largement of the Erie canal, will involve, according to the estimates that have been made, an expenditure of $15,000,000. " The best interests of the State appeal to you with great earnestness to provide for the early completion of this important improvement. I am persuaded that a larger sum than the present appropriation might be advantageously expended without causing interruption or delays to the transportation on this canal. " In those seasons of the year when business is most active, consi- derable inconvenience has already been felt, on account of the inade- quacy of this canal, and this will soon become a serious evil by the rapid increase of agricultural products in the west, and of the quantity of merchandise required for consumption in that region. '* There can be no doubt that the channel of communication between the Atlantic cities and the fertile regions of the west, through this State, is, to say the least of it, as eligible as any other that has been or can be opened, and both duty and interest indicate the propriety of making it not only adequate to the public wants, but of making it so at the earliest practicable period. " I respectfully commend this subject to your serious consideration, as one which not only connects itself with the welfare of this State, but with that of the extensive regions of the west." (Assembly Journal, 1838, p. 21.) In 1838 the political power of the two Houses was divided — one party having the ascendency in the Senate, and the other in the As- sembly. On the 13th of March, 1838, Mr. G. W. Patterson, chairman of the canal committee of the Assembly, reported upon the subject of the enlargement, which report will be found in Assembly Documents of 1838, No. 245, This report was accompanied by a bill, which is ap- pended to that report, appropriating one million dollars. The bill was amended in committee of the whole ; but in what par- ticulars does not appear from the Journal, (Assembly Journal, p. 913), and the bill finally passed the Assembly, 9th April; ayes 91, noes 3. (Assembly Journal, 1838, p. 923.) The Assembly bill was reported in the Senate by Mr. D. S. Dicken- 2 * 18 son, chairman of the canal committee, hut was amended in committee of the whole ; in what particulars, does not appear by the Journal. The bill itself, however, as amended, is set forth at length in the Senate Journal, before the final vote, (Senate Journal, p. 476), and appropriates four millions of dollars instead of the one million provided for by Mr. Patterson's original bill, and passed the Senate — ayes 17, noes 6 ; and the amendments, whatever they were, being concurred in by the Assembly, (Asembly Journal, pp. 1098-9), and the bill being approved by Gov. Marcy, became a law, (Laws of 1838, ch. 269.) It is understood, however, that the true history of the bill was this : An additional section was added to Mr. Patterson's bill in the Assem- bly appropriating a further sum of three millions, if, in the judgment of the Canal Commissioners, the public interest would be promoted by a more rapid execution of the enlargement than previously authorized. But the bill was amended in the Senate, upon the motion of Mr. Wager, by striking out this section and amending the first section, so as to make it an absolute appropriation of four millions, in the form in which it now appears in the Statute book. In 1834, a law was passed, ayes 66, noes 34, in Assembly, in the Senate, ayes 22, noes 1, for the purpose of jjutting double locks into the Erie Canal from Albany to Syracuse, which is 146 miles. In 1835, a law was passed, ayes 86, noes 16, in the Assembly, — in the Senate passed by an unanimous vote, ayes 24, for the purpose of enlarging and improving the Erie Canal. In 1838, a law was passed to appropriate four millions of dollars for the enlargement of the Erie Canal and doubling the locks. In 1835-36-37-38 there were 185 contracts made to do the work upon the Erie canal. These contracts were all to expire in 1841, and of course the work was all to be finished by that time, except two of them that were to expire in 1843. In 1839-40 and up to February 26th, 1841, there were 77 contracts made for the enlargement of the Ei"ie canal and to double the locks. These contracts all expired in 1842, and of course the work was to be completed by that time, except two which expire in 1843. By the annual report of the Canal Commissioners, January, 1839, the work then under contract upon the Erie Canal amounted to ten million four hundred and five thousand nine hundred, and thirteen dollars. The officer states that this sum will necessarily be increased for contingencies to cover the expenses for engineering, superintending, and for miscellaneous payments. In 1836, a law was passed in the Assembly, ayes 81, noes 27, in the Senate, ayes 15, noes 11, for the constructing of the Genesee Valley 19 Canal. There were also appropriated at that time two millions of dollars to do the work upon the canal. In 1837-38 there were 76 contracts made for the building of the Genesee Valley Canal ; — they were to expire in 1842, and of course the work was to be finished by that time. The estimate cost, at con- tract prices, to do the work, was two million four hundred and two thousand eight hundred and thirty-four dollars. In 1839-40 and up to February 26th, 1841, there were 65 contracts made to construct the Genesee Valley Canal, which wei'e to expire in 1842, and of course the work was to be completed by that time. The estimated cost of these contracts was eight hundred and sixty-three thousand seven hundred and one dollars. In 1836 a law was passed, ayes 82, noes 18, in the Assembly, in the Senate passed ayes 17, noes 10, for the building of the Black River canal. There were also appropriated at that time eight hundred thou- sand dollars for the work upon the canal. In 1837-38 there were 78 contracts made for the constructing of this canal and feeder. These contracts all expired in 1841, and of course the work was to be completed by that time. The estimated cost at contract prices was one million three hundred and ninety-three thou- sand two hundred and twelve dollars. In 1839-40 and up to February 26th, 1841, there were 10 contracts made for building the Black River canal and feeder. The estimated cost for these contracts was two hundred and sixty-three thousand seven hundred and fifty dollars. The contracts were to expire in 1841, and of course the work was to be completed by that time. In 1840, a law was passed to appropriate two millions of dollars for the enlargement of the Erie Canal. In 1841, another law was passed to appropriate two millions one hundred and fifty thousand dollars for the same purpose. In 1840, a law was passed to appropriate two hundred and fifty thousand dollars for the constructing of the Black River canal and feeder. In 1841, a law was passed to appropriate three hundred thousand dollars for the same purpose. In 1840, a law was passed to appropriate five hundred thousand dollars for the building of the Genesee Valley Canal. In 1841, a law was passed granting an additional sum of five hundred and fifty thousand dollars for the same purpose. The estimated cost for the enlargement of the Erie Canal and putting in double locks is, $23,402,863 02 20 The estimated cost for the construction of the Black River Canal is, 2,141,601 53 The estimated cost for the construction of Genesee Valley Canal is, 4,900,122 79 S30,44 4,587 44 The total amount for the construction of these three canals is thirty millions, four hundred and forty-four thousand, five hundred and eighty seven dollars and forty-four cents. The several sums appropriated for the building of these canals since Seward has been Governor amounts to five million seven hundred thousand dollars, and no new^ canals have been commenced ; but there has been one purchased for fifty thousand dollars. The sums appro- priated while Marcy was Governor amounted to six million eight hun- dred thousand dollars. When Marcy was governor, a law was passed to build a lunatic asylum, and fifty thmisand dollars were at that time appropriated for the work. They commenced four, and each one of them is 550 feet in length, and 68 broad, and covers a space of 183 rods, or more than thi ee acres of ground ; they were four stories high, including the basement ; they worked upon them one year, and soon after Seward came into the office of governor the work upon three of them was stopped, and there they remain, with the walls from four to ten feet high, and, like their canals, going to decay. In 1839 and 1841, laws were passed to appropriate one hundred and fifty thousand dollars for the building of the lunatic asylum. In 1834 a law was passed to authorize the building of a new state hall, and forty thousand dollars were appropriated by the law for the work, and since that time a number of laws have been passed up to 1841, to appropriate money for that purpose. These several suras amount to $162>581. No new contracts were made upon the Black River canal last year, and onlv $1,410 of the work has been put under contract upon the Genesee Valley canal last year ; $740,944 of the work upon the Erie canal liave been put under contract last year. By this it shows that the laws passed by the Whigs, in 1841, have checked and almost stopped the work upon the canals. I repeat that Seward was not governor until January 1st, 1839. I will now show the amount of work put under contract and the sum paid on the Erie, Genesee, and Black River canals, by an extract from the annual report. No. 24, in Assembly, January 25th, 1842, of the Canal Commissioners. They state : — " The following summary view may be presented of the whole work : The cost of the enlargement, as estimated by the former Canal Com- missioners, (Assembly Doc. of 1S39, No. 339,) is - - - - - $23,402,862 21 Of this amount there have been put under contract up to January 1st, 1842, including engineering, and all inci- dental expenses, $13,769,550 Total under contract, $13,769,550 Upon these contracts payments have been made up to January 1st, 1842, to the amount of, $10,570,781 The follovping is an account of the Black River canal : — The entire amount paid on account of vv^ork completed in constructing the Black River canal, up to the first day of January, 1842, is the sum of $1,550,007 67 The total amount required to complete the entire work, is 809,000 00 The following is an account of the Genesee Valley canal : — The whole amount of work under contract, including the finished part of the canal, is, $4,198,188 00 The work to be put under contract amounts to, 542,123 00 Whole amount of work completed under contract to 1st January, 1842, $2,897,008 31 Amount paid to 1st January, 1842, 2,720,697 96 The amount paid for these three canals is $14,841,576 63. If you attentively examine this account of the canals, taken from pub- lic documents, you will find that Governor Marcy and his friends were going on with the work with more than twice the expedition that Sew ard has, since he has been governor. That is not all the Whigs have done to check the work upon the Erie, Genesee Valley, and Black River canals ; they passed a law, March 19th, 1841, for the purpose of checking the work upon these canals. I here present an extract from the law, it states : — •' Section 6th. — No new work shall be put under contract, during the present year, for the enlargement of the Erie canal, or for the con- struction of the Genesee Valley or Black River canals, except such as may be necessary to render available the work now in progress, and prevent interruptions to the navigation. Section 7th. — This act shall take effect immediately on its passing." By the operation of this law the works on the canals would almost all have stopped this year, as the contracts then made expired in 1842 except four. And you see, also, by the extracts taken from Governor Marcy's mes- sages, and those from the report of the Canal Board and the Commis- sioners, in Assembly, that they all agree in pressing on the work. They speak in the strongest language, to show the necessity of having this great work accomplished. I have given you a list of Acts passed, together with the votes, that 22 you may see the great majority in favor of the works of internal im- provements. There were eighty-four contracts made upon the Genesee Valley Canals in 1838 and 1839 — these contracts all expired in 1842, and, of course, the government will have to pay the damage to the contractors for violating the contract, by refusing to appropriate money to enable them to go on with the works, according to agreement. There were more of these contracts made in 1838 than in 1839. The amount of work put under contract for the constructing of the several canals, when Marcy was governor, is as follows : — For the Erie canal, $10,405,913; for the Genesee Valley canal, $2,405,913; and for the Black River canal and feeder, $1,373,212 ; the whole amount being $14,204,038. And there are some expenses to be added to the amount of work put under contract upon the Erie canal. The amount of work put under contract upon the several canals, since Seward was governor, from January 1st, 1839, up to January 1st, 1842, is as follows : — For the Genesee Valley canal, $864,410 ; for the Black River canal and feeder, $263,705 ; and for the Erie canal, $3,363,637 ; the whole amount being $4,491,852. This amount would have been a little less if the expenses had been added to that put under contract upon the Erie canal when Marcy was governor. This account of the work upon these canals will, I presume, surprise those who did not before understand it, after hearing so much said for the last three years about Governor Seward's project for a forty million debt, as it shows that the canals were not only commenced under Mar- cy's administration, but that more than three times as much work was put under contract when he was governor than there has been since Seward entered that office, and the extracts from Governor Marcy's messages and reports from Committees show that the enlargement of the Erie canal is of great importance. The saving in the expenses of transportation added to the tolls will pay the interest upon the whole cost of the work. A list of the canals that are finished, and their cost, with the dates when commenced and completed. Erie Canal. . Commenced July 4th, 1817, and completed Oct. 1825. / ,*r, -,017 ^r,c\ m\ Uiaviplain LanaU \ Commenced Oct. 1817, — navigable Nov. 24th, 1821. ^ Oswego Canal. Commenced 1826,— completed 1828, .... 437,000 00 Cayuga and Seneca Canal. Commenced 1827,— completed 1829, .... 237,000 00 23 Chemung Canal, Commenced 1830, — completed 1833, Crooked Lake Canal. Commenced 1830, — completed 1833, Chenango Canal. Commenced 1833, — completed 1838, . 430,292 23 120,000 00 2,402,535 56 $11,364,598 88 From the above statement, the cost of constructing these canals amounted to eleven million, three hundred and sixty-four thousand five hundred and ninety-eight dollars, and eighty-eight cents. STATEMENT Of interest payable annually on the debt of each canal ; the interest on the debt of the Erie and Champlain Canal, being provided for by the fund set apart for the redemption of its stock, is not here in- serted. For the Erie canal enlargement, $354 2 1 1 Osvpego canal 21,065 " Cayuga and Seneca canal, " Chemung " Crooked Lake " Chenango Black River " Genesee Valley " Oneida Lake " Oneida River Improvement, 11,850 24,514 6,000 120,326 53,835 127,818 2,500 2,500 96 20 00 61 00 78 31 99 00 00 $721,622 85 (J.) LATERAL CANALS. The followring is a summary of the expenditures, including interest, revenue and deficiencies of each of the navigable lateral canals during the last fiscal year. Oswego, see statement IV. Cayuga & Seneca, " V. Chemung, " VI. Crooked Lake, " VTI. Chenango, " VIII. Genesee Valley, " . X. Oneida Lake, " XL Add revenue to deficiencies, Expenditures. $50,300 11 31,745 30 43,386 97 16,452 92 138,896 23 139,738 40 3,614 40 ,134 33 Revenue. $34,955 03 22,445 46 7,684 57 2,023 46 16,893 02 16,368 14 294 58 Deficiencies. $100,664 26 $15,345 08 9,299 84 35,702 40 14,429 46 122,003 21 123,370 26 3,319 82 $328,460 07 100,664 26 $454,134,33 24 By these tables, we see the expense of the canals, and the interest upon the sum each one cost, except the Erie and Champlain canal ; and in the other tables the interest is added to the expenses of the canals, which are for collectors, inspectors, overseers, and repairs, and by adding the interest to the tolls and subtracting it from the expendi- tures you will perceive that the tolls of the Chenango Canal do not pay the expenses by $1,676. This is rather a hard case to tax us for the building of the canals and to keep them in repair. I have taken the account of the contracts and when they w^ould ex- pire from the report of the Canal Commissioners, in answer to a reso- lution of the Assembly of the 26th of February, 1841, relative to con- tracts on the Canals, in Assembly, March 15th, 1841, Doc. No. 203. I remain, Yours with respect. New York, Oct. 27, 1842. William Jagger, ERRATA. For Silah B. Strong read Selah B. Strong. For Abraham Brochee read Abraham Bockee. R. Craighead, Printer. 4> S5^<^<: c«c.cce«K £> . c CC i#c« ^^ CCCX -$^ 5 c c .ccc<:: ^CC< C c^>-CCC:5LCC- ^yCC .«jCc:<$j^C4Z^i