steadily increasing annual production of salt, conclusively prove the capacity of these saline deposits sufficient to supply the whole State with salt.

Therefore, the question which now presents itself is not one in regard to the capacity of these springs, nor the best method of manufacturing the salt (these important matters have been fully settled), but it is, what shall be the future policy of the State in regard to them?

In the further examination of this subject, your Committee would briefly consider the following propositions:

1st. Shall the present policy in regard to these springs be continued?

2d. Shall the State become the sole manufacturer of salt?

3d. Should the salt springs be sold or otherwise disposed of under certain restrictions?

4th. Shall the duty on salt be increased?

1. Shall the present policy in regard to these springs be continued?

The Constitution of 1821 declared that "the Legislature shall never sell or dispose of the salt springs belonging to this State, nor the lands contiguous thereto, which may be necessary or convenient for their use." The only change worthy of note is that the present Constitution permits the Legislature, under the direction of the Commissioners of the Land Office, to sell the lands contiguous thereto, and which may be necessary and convenient for the use of the salt springs, for the purpose of investing the moneys arising therefrom in other lauds alike convenient.

The present act, chapter 346, Laws of 1859, requires the State Superintendent to take the care and superintendence of the springs and the manufacture and inspection of salt, to apportion the salt lands among the manufacturers, and to supply them with brine. For the expenses incurred and the services rendered, under the provisions of said act, the manufacturers are required to pay the State one cent per bushel, which is placed to the credit of the General Fund. The amount of duty thus collected for the last twenty-one

years, over expenses paid by the State, gives an annual average of $15,010. The net revenue for the last seven years gives an average of $25,687.57, exclusive of damages and paid for removing structures from lands sold. As has been shown, the net revenue which the State received for 1866 was $24,557.48; and the net profits of the manufacturers during that year were $272,237.07. It will be observed that these calculations are most favorable to the manufacturers. In making up the account, interest at 123 per cent is allowed them on over three and one-half millions of salt structures, and seven per cent on their active capital; while no allowance of interest whatever has been made to the State for the use and depreciation of its valuable real and personal property employed in the business. From a careful examination of this branch of the subject, your committee conclude that the present quasi-copartnership which in fact exists between the State and the manufacturers of salt, should be dissolved as soon as it can be effected with due regard to the rights of all the parties concerned.

2. Shall the State take possession of the manufactories on the Reservation, as it took control of the wells and distributing machinery in 1825, and become the exclusive manufacturer of salt?

It will be seen, by a reference to section 44 of chapter 346 of the Laws of 1859, that the Superintendent is authorized to lease the several salt lots on the Reservation, the fee of which is owned by the State, for the purpose of manufacturing salt, subject to the same regulations and restrictions as now are or may be hereafter imposed by law; and provides that "no improvements on said lots, except the salt manufactories and their necessary appendages, shall be paid for by the State if any lease hereby authorized shall not be renewed at the expiration of thirty years, or if, before the expiration of said term, the State shall provide by law for vacating such lease." It will also be seen that, by the express conditions contained in the leases by which these lots are held by the manufacturers, the State reserves the right to vacate them at pleasure and pay a reasonable value for the individual salt manufactories and the necessary appendages erected thereon.

There is a seeming plausibility in the proposition that the State should become the exclusive manufacturer of salt in order to supply the people with so indispensible an article at prime cost. It is

argued that, as the people are the owners of these salines, and as the State delivers the brine to the several blocks and vats, it will require but one step more-that of boiling and gathering the salt-to complete the whole business. As the State now performs a large and expensive part of the work, it is urged that it might, with the utmost propriety, perform the remaining portion of the process; and that, in this way only, can the people expect to obtain cheap salt. While your committee are compelled to admit the force of these propositions, they are opposed to committing to the State the management of any commercial transaction that can be as well conducted by an individual. The State should only be required to do those things for the people which they cannot advantageously do for themselves.

3. Should the salt springs be sold or otherwise disposed of, under certain restrictions?

The necessity which originally required the State to aid the manufacturers in the production of salt no longer exists. In the incipient stages of the business, private capital could not be obtained to furnish the citizens of the State with a full supply of salt from these salines. That section of the State was then new and sparsely settled; transportation slow and expensive. In addition to these disabilities, the business was to a great degree an experiment. But those years of doubt and discomfort have passed away. By the blessing of a kind providence, the forest has been turned into the fruitful field. Poverty has given way to plenty. The railroad car and canal boat now take the place of the ox cart and flat boat. Private capital now supplies State and national necessities.

Again, instead of this State possessing a monopoly, it has been ascertained that salt is one of the most abundant substances on our

globe. Nearly every State in the Union has a supply within its own borders. Reduce the customs and canal tolls on foreign salt to correspond with other articles of prime necessity, of equal value and the citizens of Syracuse will be able to purchase "Ashton's," "Turk's Island," and "St. Ubes" salt, at their own doors, cheaper than they now sell their own production.

The prohibition against disposing of the Salt Springs of the State was intended to preserve to the people the control over them,

with power to regulate the manufacture and supply of salt, and to prescribe the rate of duty or rent that the State should receive for furnishing the brine. But by the operation of the act of 1859, and the practice under it, the Legislature has in effect "disposed" of these springs by disposing of the water thereof, and virtually placed the unrestricted control of the entire production in the hands of an incorporated company. Having thus practically obtained all the benefits that could be secured by a title deed together with the guarantee of the State for an abundant supply of salt water of the best quality, it is not difficult to account for their opposition to the sale of these springs and the lands and appurtenances belong. ing thereto.

A majority of your committee have come to the conclusion, in view of all the circumstances which surround this question, to recommend to the Convention a relaxation of the present constitutional provisions on this subject, and provide that, under certain circumstances and in a definitely prescribed manner, the Salt Springs may be sold.

It will be observed by reference to the article herewith submitted that such sale is not mandatory-only permissive; and that it can. not be effected surreptitiously. The care with which the subject is guarded, nearly amounts to a submission of the question to the people. It is referred to the joint judgment and action of the Commissioners of the Land Office and the Legislature; the former to entertain such proposals as they may deem advantageous to the State, and submit the same to the Legislature for approval or rejection.

The only question that now remains to be considered is—

4th. Shall the duty on salt be increased? It has been shown that the net profits on the production of 1866 would pay an interest on a capital of nearly five millions dollars, which represents the value of the State property on the Reservation. The annual interest on this sum, at 6 per cent., is $296,794.55. At the present rate of duty, 'after deducting salaries and expenses,' the State received, in 1866, $24,557.48. Aside from this sum, your Committee are not aware that the State or the people thereof received any other valuable consideration. This, then, is the net revenue to the State from this property, which is an interest on the value thereof of less [CON. No. 156.]

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than one-half of one per cent. three cents per bushel, as proposed by the provision herewith submitted, the net revenue to the State would, on the basis of the production and expenditure of last year, amount to $165,571.09, which gives an interest of a fraction less than three and one-third per cent on the foregoing valuation. From one-quarter to one-third of these revenues should, for a limited number of years, be devoted to the sinking of new wells and other improvements, that the manufacturers may be furnished with a full supply of brine during the best and most profitable season of the year for solar evaporation.

Should the duty be increased to

The State officers have frequently called the attention of the Legislature to this subject. Governor Morgan, in his message to the Legislature in 1861, says: "The State now owns about one thousand acres of land, estimated, together with the appurtenances, to be worth at least two millions of dollars; and the salines themselves are of incalculable value. Yet, as will appear from the statements, they have for a number of years past averaged a net income of only about three quarters of one per cent on their estimated value. Legislation has unwisely reduced the duties on this important staple. Were the consumption of salt confined exclusively to our own State, it would be a matter of less importance whether the revenue from duty was larger or smaller; but when it passes our own borders, as five-sixths of it does, the unreasonably low tariff operates unjustly upon the people of this State. In view of which, I recommend that the duty be increased to two cents per bushel."

The Comptroller, in his report to the Legislature in the same year, says: "The salt springs, lands and buildings connected therewith, are a vast estate, worth probably two or three millions of dollars." "In a financial view, more revenue might well be expected from them."

The Committee on the manufacture of salt, of the Assembly of 1850, to which "was referred various petitions asking that the tolls on foreign salt passing on our canals may be reduced," say through their chairman, Hon. Elias W. Leavenworth, that "these springs are a source of revenue to a large amount, and have paid into the treasury of the State nearly four millions of dollars, most of which was applied to the Erie Canal debt; the springs would now annually pay into the treasury more than six hundred thousand dollars a