freight. Now, sir, does not that gentleman reccollect this fact, that the Erie railroad was only completed a year or two before the consolidation of the Central, and that we could not feel, and had no opportunity of feeling the effect of the charges of freight upon the Central before consolidation? It was only about the time that the consolidation of the Central took place that the effect of the Erie could be felt upon the charges for freight between New York city and Buffalo; and I contend that it was the competition existing between the Erie road and the Cen which a year or two years' experience may prove to be injurious. We are met here with this old war.cry, Monopolies! Monopolies!" I do not understand its application to this matter; but if any gentleman chooses to buy or invest in a railroad, he does so in full view of the certainty that competition of the Erie upon the prices and there will be more and competing railroads. If our case were like that of New Jersey, where a certain company has an exclusive right to carry passengers and freight across that State between the two chief cities of the union, that would be a monopoly; but where certain gentlemen choose to buy railroads, or to consolidate railroads, and the people have the right to build another rail-tral road that has kept the charges for road on each side of this one, I see no feature of monopoly. If one gentleman has a great deal more money than others, that is a monopoly in a certain senso, in that he can wield more money, and probably make more; but I do not understand that there is any monopoly in the fact that Mr. Vanderbilt has several millions. If I were forbidden by law to make or earn money, than he might be said to have a monopoly; but so long as the liberty to make money is as open to me as to him, I do not complain. He can buy more railroad shares than I can, and pay for them; but I am at liberty to build new roads or pay for old ones, and I cannot see how the word monopoly has any application to the case in hand. I do hope that none of these schemes which seems to me to be prompted by jealousies and rivalries, will be fastened on our Constitution. freight and passengers down, and not the effect of the consolidation. If we go on and leave the matter open, so that the Erie and the Central can be consoildated together with the Hudson River and the Harlem, you destroy that competition, and the man who owns them all can fix his own prices and his own charges. The question was put on the amendment of Mr. Archer, and it was declared lost. Mr. PAIGE-I move to amend the proposition of the gentleman from Albany [Mr. A. J. Parker] by making the amount twenty millions. Mr. A. J. PARKER-I will accept that amendment. The question was then announced on the amendment of Mr. A. J. Parker as amended. Mr. ROBERTSON-If it is the intention of the friends of this proposed measure to press it to a vote to-night-in a thin house, without a quorum of members present-I should like to say a few words upon the question. With a view to ascertain that, sir, I move that the committee rise, report progress, and ask leave to sit again. The question was put on the motion of Mr. Robertson, and it was declared lost, on a division, by a vote of 37 to 43. SEVERAL DELEGATES-There is no quorum voting. The CHAIRMAN-There being no quorum present, the President will resume the chair. Whereupon the committee rose, and the PRESIDENT resumed the chair in Convention. Mr. ARCHER-I did not propose to take any part in what seems to me to be a controversy between rival interests; but I wish, sir, to bring before this committee the principle in which, it seems to me, the people of the State generally have a deep and an abiding interest-that no corporation shall be permitted, by purchase or otherwise, to absorb or control any other corporation of a competing character. Now, for one, sir. I have no dread of the formation of a continuous line of railroad or telegraph through the State. But, sir, the danger, it seems to me, is here-that, when a very large amount of wealth has been aggregated together, it may, by purchase, by lease, or by some other means, overshadow or prevent the formation of a rival to itself. I have no fears of the influence of the Central railroad upon the politics or upon the future prosperity of the State, if the people shall be left free to make another and a rival road. Hence I would put this clause, or something similar, into the Consti- The PRESIDENT directed the Secretary to call tution, to preserve forever to the people an entire the roll of the Convention, which was done, and freedom from any overshadowing monopoly-it was found that the following delegates were preventing one great corporation from breaking in upon, absorbing, and putting out of existence, so to speak, that which would grow up into a wholesome competition to itself. And there is no danger to be apprehended to the liberty or the safoty of the people, while free competition is allowed. Mr. CHESEBRO, from the Committee of the Whole, reported that the committee had under consideration the joint report of the Committees on Currency, Banking and Insurance and on Corporations other than Municipal, and that, on a division being taken, it was found that no quorum was present. present: Messrs. C. L. Allen, Alvord, Andrewз, Archer, Axtell, Barker, Barto, Beadle, Berk with, Bell, Bickford, E. P. Brooks, J. Brooks, Carpenter, Cas sidy, Champlain, Chesebro, Church, Conger, Corbett, Corning, Curtis, C.C. Dwight, Ely, Endress, Evarts, Folger, Fowler, Gerry, Goodrich, Greeley, Hale, Mr. SCHOONMAKER-I simply desire to reply Hand, Hardenburgh, Harris, Hiscock, Hitchcock, to a portion of the remarks made by the gentle- Houston, Hutchins, Kinney, Krum, Lapham, A. man from Westchester [Mr. Greeley]. He speaks Lawrence, Lee, Ludington, Magee, Mattice, Merof the consolidation of the Central, and of the. rill, Merwin, Monell, More, Morris, Nelson, Opeffect of that consolidation being the lowering of dyke, Paige, A. J. Parker, C. E. Parker, Pierrethe fare and the lowering of the charges on pont, President, Prindle, Prosser, Rathbun, Robertson, Root, Rumsey, Schell, Schoonmaker, Seaver, Seymour, Silvester, Sheldon, Strong, S. Townsend, Van Cott, Wakeman, Wales, Williams, Young-78. Mr. ALVORD-I move that the Convention do now adjourn. The question was put on the motion of Mr. Alvord, and it was declared carried. So the Convention adjourned. TUESDAY, August 20, 1867. The Convention met at ten o'clock A. M. Prayer was offered by Rev. JAMES P. MAGEE. The Journal of yesterday was read by the SECRETARY, and approved. Mr. LEE-I was requested by Mr. Gould yesterday morning on leaving his house, he being unwell, to ask leave of absence for him indefinitely. There being no objection, leave was granted. Mr. M. H. LAWRENCE-I wish to ask leave of absence for Mr. Gross. I have received a letter from him stating that he is unwell, and that he would like to have his leave of absence extended until Thursday. There being no objection, leave was granted. Mr. CASSIDY-I desire to ask leave of absence for Mr. Corning for two days. There being no objection, leave was granted. Mr. SEYMOUR-I wish to ask leave of absence for Mr. Lowrey, of Brooklyn, for three days. The excuse is the sickness of his father. There being no objection, leave was granted. Mr. C. C. DWIGHT-I am compelled to ask leave of absence for myself for three days, after the session of to-day. There being no objection, leave was granted. Mr. BARKER-I ask for leave of absence for my colleague, Mr. A. F. Allen, of Chautauqua, for the remainder of this week. in the amendment of 1854. The unanimous report of the Committee on Finance, just submitted, recommends the re-enactment of the prohibition, contained in the present Constitution, and in that we entirely concur. With respect to the resolution referred to your committee, "to inquire into the expediency of providing by an amendment to the Constitution for the leasing for a term of years the Champlain canal or any other of the lateral State canals," ete, your committee are of opinion that no such disposition is practicable. The lateral canals should be treated as parts of an entire system, which, as a whole, is self-sustaining and highly remunerative to the State, and no part of the same can be abandoned without doing injustice to localities and incurring the serious and merited displeasure of large portions of the people. A majority of the railroads which have been constructed in the same or similar localities, have proved disastrous and non-paying investments to the proprietors; yet no one, in the sections interested, would tolerate the idea of their abandonment. Assuming that the canals are to remain State property, the important question arises, what shall be the future policy of the State in regard to this vast system of internal navigation and commerce with other States, through their agency? Shall they be preserved, improved and made as remunerative and beneficial to the public as the legitimate use of their resources will admit consistently with existing obligations, and without resorting to taxation for that purpose; or shall they be denied all further improvement, their diminished revenues handed over to other objects, and the faith and honor of the State sacrificed? To adopt at this late day a system which will prevent the further improvement of the canals out of their own earnings, when such improvements are found necessary, and such earnings sufficient for the purpose, and which would divert the growing commerce of the Northwest to other chan There being no objection, leave was granted. Mr. COCHRAN-I request leave of absence for myself from this session until next Thursday morn-nels, would be the height of financial folly and an ing. There being no objection, leave was granted. Mr. PRINDLE presented six petitions of residents of the county of Chenango, containing two hundred and fifty-nine names, asking the separate submission of a clause prohibiting the sale of intoxicating liquors as a beverage. inexcusable denial, on the part of this great State, of those obligations to the other States, which arise from our geographical and commercial position. It is a truism that our conduct should at least be as liberal and considerate with reference to the future as would be that of an individual in Which was referred to the Committee on similar circumstances. Adulterated Liquors. Entertaining these views, your committee have Mr. CASSIDY presented a petition on the same devoted much of their time to the question as to subject. Which took a like reference. Mr. LAPHAM. from the Committee on Canals, submitted the following explanation, to accompany the report heretofore made from that committee: Your committee, in view of the great importance of the subjects thus considered, present a statement of the reasons which have governed their action in submitting the foregoing article for adoption by the Convention. Your committee assume that the canals are to remain the property of the State. Such was the determination of the Convention of 1846. The people ratified the decision by adopting the present Constitution. That expression was renewed what improvements, if any, are necessary, and whether the revenues will be sufficient for the purpose of such improvements without resort to taxation, and without any abandonment of the pledges of the existing Constitution. Your committee found these questions very fully considered and discussed in the reports upon the subject made by the Canal Committee to the Legislature during its last session, and in the official reports of canal officers for several years past. They have also taken the examination of engineers, public officers and practical operators, who were deemed to possess the most reliable knowledge upon the subject. From these sources it appears that in the en- | fifty to two hundred feet long, and say twentylargement of the Erie canal about seventy miles three feet wide, have been in successful operation of the eastern section, being the first portion en- thereon for the last twelve or fifteen years. larged, was constructed with what are termed Their average speed, including lockages, being wall-benches, and is from six to ten feet narrow-three miles per hour, at which they are limited er on the bottom than the remainder of the chan- by the regulations upon the canal." nel. The reverse should be the case, and the eastern the wider portion, to accommodate the accumulation of boats as they come in from the other canals and approach the Hudson river. The removal of these wall-benches, so as to make this portion of the canal as wide at least as the remaining portion, is indispensable to secure the full navigable capacity of the Erie canal. They are also of opinion that the present locks upon the Erie, Oswego and Cayuga and Seneca cauals do not furnish to the canals more than onequarter of such navigable capacity. The locks will not admit of the passage of boats carrying over about two hundred tons, and for considerable portions of the seasons of navigation they are not sufficient to accommodate the business now offered. The published estimates and tables, based upon an equal distribution of lockages through the entire season of such navigation, show that not over seventy-five or eighty per cent of the capacity of the locks has yet been reached. But these estimates are fallacious in practice, as the main business is crowded into a much shorter period of time. The lockages cannot, in practice, be so distributed, and when boats are crowding for lockage, the time of passing will always be more or less delayed by irregularities which unavoidably will occur. This change will diminish the cost of transportation, give to the public the full use of the enlarged channel of the canals, and secure to us the rapidly increasing commerce of the West and Northwest. Already the opening gates of other avenues are turning on their hinges, and unless we act promptly and wisely the flood may pass in other directions. We must depend mainly upon this commerce for our future revenues. The history of canal transportation abundantly proves this. In 1837 there was only 56,255 tons from the West reaching tide-water, while from within the State the quantity was 321,251 tons. In 1866 the amount from within the State had diminished to 287,948 tons, while that from the West had increased to 2,235,716 tons. This was the largest quantity ever received, save in the exceptional years of 1862 and 1863, when the greatest delays occurred in the navigation of the caual. these exceptions the increase has been gradual and almost uniform from the cpening of the Erie canal to the present time, as will appear by the following table, giving the tonnage arriving at tide-water by the Erie canal for the last thirty years, and the portions from within the State and from the Western States and Canada. 1837, 1839, 1849, YEARS. From With From this Total tons. 56,255 321,251 587,506 83,233 336,016 419,249 1839, 121,671 264,596 386, 267 1840, 158,148 309,167 467,315 1841, 258, 672 480,149 1843, In the mode in which the business is now done, the locks are taxed, during the season from harvest to near the close of navigation, to their full capacity, and at times, beyond that. This is shown to have been the case for several years, resulting at times in serions and protracted delays in navigation. To obviate this and to secure to the public the use of the navigable capacity of the canals, it is proposed to construct a single tier of locks of sufficient size to pass boats twenty-three feet in width and two hundred feet in length, capable of carrying six hundred tons. The boats now in 1847, use can be passed through such locks with the 1848, same facility as through those at present existing. The materials, where there are double locks, are 1851, nearly, perhaps quite, sufficient for the new struc- 1852, tures. To do an equal amount of business the number of lockages will be diminished; carriers will be enabled to take freight at reduced prices, and steam can be used as a propelling power. 1857, The following extract from the report of the Committee on Canals, to which reference has been made, and which has been furnished to the members of the Convention, is pertinent in this connection: 1863, If any are of the opinion that the proposed 1864, work is of doubtful utility, after what has already 1865, 1866,. been stated herein, the committee respectfully refer all such to the Delaware and Raritan canal, So the statistics show a like gratifying increase in the State of New Jersey, a canal of about the upon the tonnage of all the canals during the same same sized prism as the Erie; with locks two period. In 1837 there was carried upon all the hundred and twenty feet long, and twenty-four canals 1,171,296 tons, valued at only $55,809.288, feet wide, two boats the size of those now in use and producing a revenue in tolls of $1,292,623, upon our canals will pass one of those locks at while in 1866 we reached the enormous amount the same time, full as quickly as one will through of 5,775,220 tons, valued at $270 963,676, and our locks; and steamers from one hundred and producing a revenue in tolls of $4,436,639. 66 The following table will show the remarkable | What is to be done with all this property when steadiness and uniformity of this increase: YEAR. Tons. Value. Tolls. transported to New York by rail? The Atlantic docks and the immense expenditure which has been made to furnish facilities for this commerce, by water, what is to be done with those? The increased expense by rail is another insuperable 1,171,296 $55,809,288 $1,292,623 objection. The actual cost to the railroad from 1,333,011 65,746,559 1,590,911 Buffalo to New York for the past three years, as 1,435,713 73,399,764 1,616,382 1,416,046 66,303,892 1,775,747 appears by the returns made under oath, on be1,521,661 92,202,929 2,034, 882 half of the New York Central railroad company, 1,236,931 60,016,608 1,749,196 has been double all the charges upon the Erie 76,276,909 2,081,590 2,446,374 canal, and in excess of the water carriage from 2,646,181 Chicago to New York. 2,756,106 3,635,381 The following is a statement of such cost and 3,252, 212 charges: 3,268, 226 1837,. 1838, 1839, 1840, 1841.. 1842, 1843, 1,513, 439 1844, 1,816, 586 1845, 1,983,011 90,921, 152 100, 553, 245 3,273,899 In 1866 3,305,607 tons reached tide-water from the Erie and Champlain canals. This was more than the foreign exports or imports at the city of New York. The rapid settlement and growth of the new States, and the rapidly increasing products of the States of the Northwest demand more ample facilities for transportation. It is clear that an increase of the capacity of the locks and aqueducts and the removal of the wall-benches are all that is requisite to furnish such facilities. If we fail to do this, that increasing commerce will be forced to seek other channels; but, if we exercise that wisdom and foresight which characterized the conduct of the distinguished men with whom the canal system originated, the Erie canal may continue to be what they designed and hoped it would always remain-the great artery of commerce from the lakes to the ocean. Why should not such improvements be made upon the canals as time and experience have proved to be necessary, and as our means will allow? In truth, the position is now openly advocated that they should not be improved. The opponents of such improvement intrench themselves behind the position that the work is wholly unnecessary. It is a strange position to advance that in the construction and operation of railroads, in river and ocean navigation, various improvements and vast expenditures are annually found necessary to supply the public wants and promote economy and convenience, but no such necessity exists in respect to the canals. They must stand still. Had the destinies of the Empire State always rested in the hands of such advocates, the Erie canal would never have been constructed. The suggestion that this increasing business can be done by constructing railroads needs but a moment's notice. It is entirely impracticable. I Comparative statement of movement of eastward bound tonnage on the Erie canal and New York Central railroad. Average freight per ton for three years, from Chicago to New York, canal and lakes,. The reports also show that the cost of repairs | ducts and bridges, the estimates heretofore made upon the track of railroads is equal to about ten are, in substance, adopted. per cent upon the cost of the road track, while A survey and estimate of the cost of enlarging the cost of superintendence and repairs upon the Erie canal, with all the waste of money which has occurred, is only about one-tenth of that sum, or less than one per cent. the locks and making improvements, as proposed, were made in 1863. An experienced engineer, who assisted in making them, as the agent of the general government, was examined as a witness It will be an unfortunate day for the people of before us. From his evidence, it appears that the this State when they adopt and act upon the idea work was projected with a view of affording a that the canals have "fulfilled their mission," passage for gun-boats to the lakes. The plan and that "we have outgrown their more import- was to construct a series of new locks, all of new ant use." The Central road, during the periods material, of the highest finish used in structures aforesaid, carried all the freight its cars would of that character, leaving one tier of the present hold or its motive power propel, at the time when locks for permanent use. In arriving at the cost freights were pressing, and yet the quantity, ex-of twelve millions for such work, the cost prices cept animals, was only about one-fifth part of of 1860 were adopted and fifty per cent added that taken by the canal, and including live stock thereto. less than one-third. Three items of the same, for deepening the The Auditor has reported to this Convention in canal one foot, for land damages and removal of response to a resolution of inquiry the aggregate buildings, and engineering and contingencies cost of all the canals and feeders, both productive make $3,417,421. By changing the masonry and unproductive, with all cost of maintenance from the full finish therein contemplated to what and repairs, and interest at seven per cent upon all is termed rough dress or hammered masonry, and such expenditure. (Manual, vol. 2, 450, 451.) The by using the materials on hand, which are beentire cost and interest foots at $200,093,502.25. lieved to be ampie, where there are double locks, The entire income, with interest, has been that estimate is greatly reduced. The materials $202,619,510.08. This leaves the canals debtors equal about one-half the cost of masonry. to the State in the sum of $7,473,992.27. Assuming this statement to be correct, it follows that what are now termed canal debts have been arbitrarily fixed as such. In no estimate or statement which has fallen under our observation, except in this of the Auditor, have the canals been credited with the $200,000 per annum which has been paid for the support of the State government out of their revenues since 1846. This account of receipts and expenditures, and interest on each, appears to be the true mode of determining the extent to which the canals are indebted to the State. In either view of the subject the question may well be asked, what system of public works of equal magnitude can compare with our canal system in the remuneration they have furnished for the expenditures made in their construction and maintenance? The canals we propose to have improved are creditors to the amount of over thirty-eight millions of dollars. Recapitulation. For Champlain canal, $300,000 00 4,000,000 00 300,000 00 400,000 00 1,644,314 00 $6,644,314 00 The canal debts for payment of which provision is made, are as follows: Canal debt of 1846, Canal enlargement debt,. Total,.... $3,265,000 00 10,807, 000 00 1,700,000 00 $15,772,000 00 The following statement shows the mode in which the cbligation to pay the above debts may be sacredly observed, the interest on the general fund debt paid, the contemplated improvements made, and upon the basis of $3,000.000 net revenue in each year, which is about the average of the last seven years: article 7, In the sinking fund, under section 3 of article 7,... $324,982 02 608,852 33 Cash on hand May 1, 1867, applicable to the In determining the question whether the pro-payment of said debts, and the general fund debt, posed improvement can be made without taxation, as stated by the Auditor as follows: your committee have provided in the foregoing In the sinking fund, under section 12 of article for the payment of the principal and interest as they fall due of the canal debt, the enlargement debt, the floating debt, and the interest on the general fund debt. The appropriation already made for the Champlain canal is supposed to be sufficient for the work, as now authorized by law; bit an additional sum is set apart to meet any contingency, and save a resort to taxation. They have estimated the cost of building the enlarged works at $40,000 per lock, or $4,000,000. Witnesses have testified that price is ample for the purpose. An experienced contractor and former canal officer, on his examination, stated he would be willing to do the work at the sum named. For the removal of the wall- benches; for additional water and basins, and for enlarging aque Interest May 1, 1867, to January 1, 1868, at 4 per cent, canal debt Interest on gen eral fund debt Oct.1, 1866. to 1,076,900 00 $2,010,734 35 53,619 58 $3,000,000 00 Jan. 1, 1868,.. 403,022 94 1,087,881 69 1,912,118 31 Balance, January 1, 1868,. $3,976,472 24 |