NEW YORK. 



Brought forward 11,808,108 10 $4,809,710 13 



nci-ablti to annual 



l.rliit- 



Inif, nn>l otlu-r miscellaneous 



payments 64,48888 



Po>OTrdrnft on aocxmn toft 

 plain canal lock*, per act, chap. 



- h - rfw " 4M2t ti.484,8, 78 



Burplun revenues 12,874,75089 



\vlilch Imvo been transferred to the sinking 

 at follow* : 



Sec. 1, of tho Con- 

 stitution...! $1,700,000 00 



.-ec. U, of tbo Con- 

 stitution 800,000 00 



-Sec, 8, of the Con- 

 stitution 834,756 89 



$2,574,756 89 



STATEMENT or TH CAXAL DEBT, PAYING INTEREST ox 

 SEPTEMBER 30, 1866. 



The canal stock was reduced during tho year 

 7,985.49. The balances now in the canal 

 debt sinking fund, amonnting to $2,563,623, 

 pledged to the payment of the principal of tho 

 debt, when applied, will reduce that principal 

 to $15,602,976. It is estimated that tho en- 

 tiro liquidation of the general fund debt of 

 1846, may bo looked for in 1872. The Canal 

 Department has been purchasing the nnma- 

 ttired stocks, with a view to cancellation, and 

 will continue to do so to the extent of its avail- 

 able means, when offered at prices advantageous 

 to the State. 



Governor Fenton, in his annual message, soon 

 after the close of 1866, discussed at some length 

 the necessity of providing additional canal 

 facilities for the immense and constantly in- 

 creasing transportation business between tho 

 East and the West, lie called attention to the 

 proposed plan of constructing an enlarged tier 

 of locks on tho line of the Erie and Oswego 

 Canals, from tide-water to Lakes Ontario and 

 Erie, which will admit the passage of vessels 

 propelled by steam, of 500 or 600 tons burden. 

 These vessels would carry threefold the tonnage 

 of the present canal boats, and make the round 

 trip in naif of the time. Competent engineers 

 have estimated that the capacity of the canals 

 would be increased to over 11,000,000 tons, and 

 the cost of transportation reduced one-half. 

 The cost of the improvement is placed at about 

 $10,000,000. The Governor suggested that the 

 ntion to be called for the revision of the 

 State Constitution would have power to modify 

 the present financial article, so as to permit 

 a debt to be created to cover the cost of this 

 improvement, if it should be deemed worthy ot 

 public patronage and support. It is a question 

 whether the General Government should not 

 aid the State in a matter of such national im- 



portance, either directly or indirectly, by remit- 

 ting something of the tax npon (ho industry or 

 capital of the State, to tho extent of the war 

 debt. 



This subject was referred to the appropriate 

 committee at tho subsequent meeting of the 

 Legislature, and was fully reported on. Tho 

 committee were of the opinion that an immo- 

 diato enlargement of tho canal locks was neces- 

 sary to preserve the ^through traffic, which 

 otherwise would seek rival lines. They report 

 in favor of one tier of locks 220 feet long and 2C 

 feet broad, from Lake Ontario to the Hudson 

 River. These locks would accommodate boat* 

 200 feet long and 23J feet wide, with an aggre- 

 gate capacity, if impelled by steam, of a busi- 

 ness of fully 10,000,000 tons. When required, 

 another similar tier of locks can be constructed. 

 Tho committee indorse tho opinion that this 

 improvement will reduce the rates of freight 

 one-half from the Lakes to Now York city, and 

 that the saving from this source alone, in ono 

 year, would nearly bo enough to complete tho 

 proposed work. They also think that within 

 ten years after the enlargement is finished, the 

 cost of the improvement and the present canal 

 and several fund debts will have been fully 

 paid by the tolls without any resort to taxation 

 of the people of the State. Tho total expense 

 of the improvement is estimated by the State 

 engineer at $8,215,263.75. The canal fund will 

 probably have on hand, September 30, 1868, 

 the sum of $7,919,685, which the committee 

 think might be used for tho purpose, as it will 

 not be required to pay either principal or in- 

 terest of tho canal debt, and as such use in- 

 volves no breach of faith to creditors, or stretch 

 of constitutional authority. The enlargement 

 of the locks on Seneca and Caynga Canals of 

 the same size as the Erie is also recommended. 

 The committee direct attention to the grow- 

 ing receipts of flour and grain at Montreal, 

 as showing the possibility that the Canada 

 route may become the highway for freights 

 from the West. Some of tho Southern lines 

 are also regarded as formidable competitors 

 especially the Norfolk route, which makes a 

 shorter distance from Cincinnati to tho sea- 

 board by 160 miles than to New York, via tho 

 Lakes, Erie Canal, and Hudson River. The 

 Baltimore and Ohio, Pennsylvania Central, and 

 Pittsburg, Fort Wayne and Chicago lines are 

 also glanced at, and it is demonstrated that the 

 New York canals cannot be sustained without 

 the northwestern trade, which will inevitably 

 seek other channels unless these canals are en- 

 larged. 



Tho aggregate quantity of flour, wheat, corn, 

 and barley, and other articles of produce which 

 had been transported over the Erie Canal from 

 the west and landed at the head of tide- water 

 navigation at Albany and Troy, from the com- 

 mencement of navigation in each year to the 

 7th of December, inclusive, during the years 

 1864, 1865, and 1866, was, as shown in the fol- 

 lowing table : 



