118 INTRODUCTION. 



less intimately connected with the prosperity of this state and the success of her 

 system of improvements were in process of construction by the state of Ohio. 



The whole cost of the Erie and Champlain canals was stated at $9,130,000 ; 

 the canal debt at $7,738,000, and its annual interest at $413,000. The canal 

 commissioners reported that the tolls, during the preceding year, were $566,221 ; 

 and they estimated them for the current year at $750,000, which, with the other 

 revenues of the canal fund, would make the sum of $1,100,000, and after pay- 

 ing all expenses and interest, leave applicable to the reduction of the principal, 

 $575,000. 



The year 1826 was distinguished by the commencement of the railroad policy 

 in the state of New- York. Stephen Van Rensselaer and others were incorpo- 

 rated with power to construct a railroad from Albany to Schenectady, and the 

 right to enjoy, for fifty years, the profits of the enterprise ; but the state reserv- 

 ing the right to assume the road on paying to the company the excess of the cost, 

 with interest thereon, over the profits of the work. This important feature has 

 been incorporated in all the charters since granted for the construction of rail- 

 roads, and circumstances are now occurring which indicate its importance. 



The legislature in 1827, was occupied, so far as internal improvements were 

 concerned, with the policy of aiding the Delaware and Hudson Canal Company ; 

 with discussing the most eligible route for a connection between the Erie 

 canal and the Susquehannah river, and with considering the merits of the pro- 

 jected state road through the southern counties. Then, and during several suc- 

 cessive years, the general policy of internal improvement being scarcely ques- 

 tioned, the public mind was engaged rather with the comparative merits of 

 various projects, than in digesting and perfecting a system. 



In 1835, the debt of the state, incurred in the construction of the Erie and 

 Champlain canals, had virtually been paid. Moneys derived from the revenues 

 of the canal fund, equal to the canal debt, had accumulated and been invested 

 for the security of the public creditors ; and the revenues arising from salt and 

 auction duties were now, by an amendment of the constitution, diverted to the 



