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And this balance is the sum which has been drawn from the treasury to make up the deficiency, as provided by chap. 237 of the laws of 1834.
The tolls upon this canal have increased $445.41, comparing the present with the preceding year.
There are two collectors on this canal, one of whom receives 8150, and the other $200. The expenses of the two offices, amounting to $369.63, are deducted from the tolls received on the Crooked Lake canal. The amount of tolls actually paid on said canal is $1,822.64, from which deduct the charges for collection, and it leaves $1,453.01, being the nett amount of tolls, as given in statement Q, appended to this report.
Thus showing a deficiency in the revenue of this ca
nal to meet the current charges upon it, of........ $8,700 00
CHENANGO CANAL. At the date of the last report there was a balance in the hands of the Commissioners, of the moneys loaned for the construction of this canal, of .....
The following sums have since been received, viz: For interest on deposites of the moneys loaned for this canal,...
$48,434 42 Por donations paid in by W. C. Bouck, 795 00
Brought forward, ....
as follows, viz:
850,000 00 To Wm. C. Bouck, Canal Commissioner,
towards construction of canal, ...... 651,782 45 For advertising and counsel fee,
Balance in the hands of the Commissioners, 30th
September, 1835, (see statement S)............ $177,872 21
The amount of premium obtained on the loan of $900,000 made in April, 1834, was deposited as required by the sixth section of the act for the construction of the Chenango canal, and the original sum, $58,500, and the interest upon the deposite of this sum at 5 per cent, have been applied to the payment of interest on the loan of $900,000. The payment of the quarterly interest upon the stock, on the first of July last, absorbed the avails of the premium, except the sum of $6,281.15. The payment of the quarterly interest on the first of October, 1835, exhausted the entire avails of the premium, and required the Commissioners to draw upon other funds for the sum of $4,968.85. This latter sum was paid from the interest obtained upon the deposite of the money borrowed for the construction of the canal.
The total amount of interest obtained on the deposite of the principal, has been as follows, viz: From the Mechanics' and Farmers' Bank,.... $22,991 11 From the New York State Bank,
The whole of this sum has been already expended in paying for damages in making the reservoirs, and on contracts for constructing the canal. And as the sum of about $40,000 has been awarded to individuals for damages done them in the construction of the reservoirs, which sum is not covered by the estimate or appropriation made in 1835, no portion of the interest paid by the banks can hereafter be applied to the payment of interest on the outstanding stock.
The seventh section of the act for the construction of the Chen nango canal, provides for the payment of the certificates of stock when they become due (after 1845,) "out of any moneys which may be on hand belonging to the Canal Fund, which may not be pledged by the Constitution of this State.” The payment of the interest upon this stock from the present time until after 1845, is not provided for, beyond the amount of the premium, either in the law authorizing the money to be borrowed, or in any other law of the State. So long as the Commissioners have in their hands moneys loaned for the construction of the canal, they will feel it their duty to pay the quarterly interest on the stock issued as it becomes due. But the money which is authorized to be borrowed will nearly, if not all, be paid out for the construction of the canal in the course of the current year, leaving the Commissioners without any means to pay the interest from this fund, and without any legal authority to draw upon any other fund or upon the treasury
for the purpose.
The amount required to pay.interest on the million of dollars already borrowed for the Chenango canal, for ten years, from January, 1836, to January, 1846, will be five hundred thousand dollars. The Commissioners are authorized by chapter 182 of the Laws of 1835, to borrow an additional sum of $860,000. The premium may be counted upon to pay the interest for two years, leaving the interest upon $860,000 for eight years, to January, 1846, to be provided for, being $344,000. Thus showing that the sum of $844,000 will be required to pay interest on the stock issued for the Chenango canal, before any aid can be received from the Erie and Champlain canal fund. The completion of the canal will not, in the opinion of the Commissioners, remove the necessity of making permanent provision by a special law for the payment of interest on the money borrowed to construct the work. The Commissioners therefore respectfully urge upon the consideration of the Legislature, the importance of providing the means for paying the interest upon this stock, as a measure indispensably necessary to preserve the credit of the State.
The Commissioners advertised for a loan in August last, of $500,000, under the act of the last session, authorizing $860,000 to be borrowed for this canal. Offers were made for the loan at
a premium of 12 per cent, and the sum of $400,000 was awarded to J. & J. Cohen & Co. of Baltimore, and $100,000 to Harman Hendricks, of New-York. The Messrs. Cohen declined taking the loan on the alleged ground that their offer was for the entire loan, half a million, and that they were not obligated to take a less sum: Mr. Hendricks having signified his willingness to relinquish the $100,000 awarded to him, the Messrs. Cohen were offered the stock for the whole loan, which they also declined taking.
GENERAL SUMMARY OF THE Direct REVENUES FROM ALL THE
CANALS, AND THE EXPENSES OF THEIR MAINTENANCE. The revenues derived immediately from all the canals during the fiscal year, and the expenses of their maintenance, are as follows, viz:
Revenue from tolls.
19,734 82 Chemung canal,
4,167 40 Crooked Lake canal,
Expenditures for repairs and the collection of tolls.
14,829 23 Cayuga and Seneca canal,
11,237 33 Chemung canal,
12,236 05 Crooked Lake canal,
Surplus of the revenue of the canals from tolls over
and above the cost of their maintenance, ......
Statements M, N, O, P and Q, annexed, give the materials from which the above exhibit is made; and the surplus above given exceeds the aggregate of the balance of the surplus as shown by
those statements, in precisely the amount paid for interest, on the canal debts, which is not included in the above.
A. C. FLAGG, Comptroller.
WILLIAM CAMPBELL, Surveyor-Gen'l.
STATEMENTS A and B, show the amount received during the year ending on the 30th September, 1835, on account of the Erie and Champlain canal fund, and the sources trom which it was derived; and also the amount of money paid, with a general specification of the objects for which the payments were made.
C and D, show the like in relation to the Oswego canal fund.
E and F, show the like in relation to the Cayuga and Seneca canal.
G and H, show the like in relation to the Chemung canal.
M, shows that portion of the revenue of the Erie and Champlain canal fund, for the year ending 30th September, 1835, derived immediately from the canals, together with the charges upon them for maintenance and the payment of interest on the debts contracted for their construction.
N, shows the like in relation to the Oswego canal.
R, shows the present amount of the debts of the several canals, the description of the stock, and the periods after which they are respectively redeemable at the pleasure of the State.
s, shows the amount of canal moneys held by the several banks on the 30th September, 1834; the sums received and paid during