NEW YORK. 



617 



Resolved, That the Auditor of the Canal Depart- 

 ment be requested to inform the Assembly, in the 

 possible event of the abandonment of tolls on the 

 Erie, Ohamplain, and Oswego Canals, what would 

 be the probable cost of their maintenance by the 

 State, specifying the yearly sums required for all 

 probable repairs, the support of said canals named, 

 and the amount of additional taxes which would be 

 imposed upon the people if the canals are made free. 



The Auditor in his reply said : 



The abandonment of tolls on any or all of the 

 canals of the State requires, in the first instance, a 

 radical change in the financial article of the Consti- 

 tution, and the amendments necessary to effect that 

 object could not become operative before January 1, 

 1881. The taxes necessary to be levied for the pay- 

 ment of the principal and interest of the canal debt, 

 and for maintaining the canals, would be assessed 

 on the annual valuations of the real and personal 

 property of the State, from and after tlie year 1881. 

 The aggregate valuation for the year 1877 ($2,755,- 

 740,318) was 29 per cent, greater than for the year 

 1873, and the same ratio of increase would give us a 

 valuation in 1881 of $3,554,905,010. The interest- 

 bearing canal debt which will remain unpaid at the 

 close of the fiscal year ending 30th September, 1881, 

 will amount to $9,013,700, and the accumulation ot 

 the sinking fund applicable to its payment at the 

 same date should amount to $4,102,103.14. The debt, 

 after applying the sinking fund, would amount to 

 $4,911,596.86, which if paid by a single levy would 

 require an assessment, upon the estimated valuation 

 of 1881, of one and three fifths of a mill per dollar 

 of valuation ; or if paid by annual assessments until 

 the debt matured, as we are now doing, the assess- 

 ment for 1881 for contribution to sinking fund and 

 payment of interest would be nearly three tenths of 

 a mill. This debt of $9,013,700 does not fully mature 

 until October 1, 1893. The interest from October 1, 

 1881, to the maturity of the debt will aggregate in 

 the twelve years $4,767,421.50, and by paying the 

 debt October 1, 1881, the interest would be stopped 

 and $4,767,421.50 saved in taxes. The saving would 

 average nearly $400,000 per annum for the period of 

 twelve years. 



The cost of collection, superintendence, and ordi- 

 nary repairs for the fiscal year ending 30th Septem- 

 ber, 1878, was as follows : 



For the Erie Canal $692,472 19 



For the Champlain Canal 139,216 52 



For the Oswego Canal 45,549 24 



Total $877,237 95 



Assuming that this sum represents the minimum 

 of cost for the three canals, it would require an as- 

 sessment upon the estimated valuation of 1881 equal 

 to one fourth of a mill per dollar of valuation ; and 

 if with those canals there be included the Cayuga 

 and Seneca and the Black River Canals, an assess- 

 ment of four fifteenths of a mill would maintain 

 them all at an aggregate cost of $950,768.16; or, if 

 assessed upon the valuation of 1877, it would require 

 a tax slightly in excess of one third of a mill. 



The subject of the revenues and the increase 

 of commerce on the canals was referred hy the 

 Canal Board to a Commission for the purpose 

 of investigation. They made an exhaustive 

 report to the Legislature on February 13th, 

 which contains some important facts. It ap- 

 pears that up to the close of the year 1866 the 

 Erie Canal had not only repaid from the re- 

 ceipts for its use every dollar expended upon 

 it, but had yielded in addition to the State 

 Treasury a surplus of $41,397,651. All this 

 large sum, and some several millions addition- 



al, had up to that time, however, been absorbed 

 in the construction and maintenance of the 

 Champlain and the lateral canals, the expenses 

 on account of which had exceeded the receipts 

 from tolls for their use by the sum of $48,871,- 

 643. The general result, therefore, up to that 

 time, was a direct loss to the State of $7,473,- 

 922. From 1873 to 1877 inclusive, a period of 

 five years, covering a remarkable depression 

 of all business, the receipts of the canals from 

 all sources, even with the drag of the lateral 

 canals, have been sufficient to meet the cost 

 of collection and superintendence and all ordi- 

 nary expenditures, and leave a surplus avail- 

 able for other purposes. During the same 

 time, however, there has been raised by taxa- 

 tion the sum of $9,393,603, which has been 

 swallowed up in extraordinary expenditures. 

 An analysis is made of the season of 1877 with 

 direct reference to the system of low tolls, 

 thus affording a basis for the consideration 

 of the future system and rates of toll. This 

 analysis explains the mystery of the compara- 

 tively small falling off in revenue, considering 

 the great reduction in tolls. If the revenue had 

 fallen off relatively to the reduction of tolls, 

 lumber and breadstuffs would have yielded less 

 than $500,000 ; instead of this, however, the 

 sum of $703,927 was received. There was a 

 great absolute increase in manufactures, and 

 a curiously small tonnage movement in the 

 products placed on the free list. The lesson 

 is, that reduction and simplification of tolls on 

 bulky agricultural products result in increased 

 tonnage, without material diminution of the 

 revenue. No recommendation was made on 

 the subject of free canals. . 



The proper valuation of the various classes of 

 charities of the State, and their receipts and ex- 

 penses for the year 1877, were as follows: State 

 Charities Real estate, $6,569,079.29 ; person- 

 al, $497,842.46; total, $7,066,951.75. Receipts 

 Cash balance, $83,801.94; State, $801,077 

 .29; municipalities, $371,251.37; other sources, 

 $397,444.75; total, $1,653,578.55. Expendi- 

 tures Buildings and improvements, $528,162 

 .25; supervision and maintenance, $1,049,612 

 .16; total, $1,577,774.41. County and City 

 Charities Real estate, $6,533,345 ; receipts 

 from municipalities, $2,761,775.96 ; expendi- 

 tures, $2,761,775.96. Incorporated Charities 

 Real estate, $14,115,741.16; personal estate, 

 $4,723,039.92; total, $18,838,781.08. Receipts 

 Cash balance, $254,497.62 ; State, $99,769- 

 .82; municipalities, $1,477,359.84; donations, 

 $715,157.05; other sources, $1,288,768.18 ; to- 

 tal, $3,835,547.51. Expenditures Buildings 

 and improvements, $327,720.30; supervision 

 and maintenance, $3,816,156.29 ; total, $4,143,- 

 876.59. These aggregates are very large. The 

 value of the real estate is $27,038,165.45 ; per- 

 sonal, $5,220,882.38; total, $32,259,047.83. 

 The total receipts are $8,250,902.02, of which 

 the cash balance is $338,299.56 ; State, $900,- 

 842.11; municipalities, $4,610,387.17; dona- 

 tions, $715,157.05; other sources, $1,686.216 



