Brought forward,............ $1,093,818 05 $4,477,546 17 To weighmasters, thirteen thou sand three hundred and fortyseven dollars and seventy cents, For salaries chargeable to annual revenues, refunding tolls, printing and other miscellaneous payments, seventy-seven thousand and seventy-nine dollars and twenty-nine cents,.......... 13,347 70 77,079 29 1,184,245 04 "Surplus revenues," three million two hundred and $3,293,301 13 AMOUNTS SET APART BY ARTICLE VII OF THE CONSTITUTION, VIZ: To Sinking Fund under section 1, one million seven hundred thousand dollars, To Sinking Fund under section 2, three hundred and fifty thousand dollars,......... ...... To Sinking Fund under section 3, one million one $1,700,000 00 350,000 00 1,116,242 66 127,058 47 $3,293,301 13 There are also ten thousand one hundred and sixty dollars ($10,160) of Canal debt, which sum is past due and does not now bear interest; this is included in my previous statement of Canal debt. The aggregate balance of all the Sinking Funds applicable to the Canal debt in the treasury, and temporarily invested on the 30th of September, was four million and seventeen thousand two hundred and thirty-two dollars and forty-three cents ($4,017,232.43.) These Sinking funds are pledged for the payment of the interest and the redemption of the principal of the several debts and loans incurred under sections one, three and twelve, of article seven of the Constitution in the construction and enlargement of the canals. The application of the above balance to the several debts, for the payment of which these funds have been provided and set apart, would reduce the above outstanding indebtedness to the sum of ten million three hundred and seven thousand nine hundred and twenty-one dollars and twenty-four cents ($10,307,921.24), as will more fully appear from the following statement: It will be seen from the last statement, which is made up by the Canal Department, that the total amount of Canal debt is seventyfive thousand one hundred and ninety-three dollars and sixty-seven cents ($75,193.67) in excess of the amount previously stated by me. The first statement is from the Comptroller's books. The explanation of this discrepancy is as follows: The Canal debt, under section 1 of article 7 of the Constitution, is two million two hundred and forty thousand eight hundred and sixty dollars,...................... The Sinking Fund is two million three hundred and sixteen thousand and fifty-three dollars and sixty-seven cents,...... Excess of Sinking Fund over debt, seventy-five thousand one hundred and ninety-three dollars and sixty-seven cents, $2,240,860 00 2,316,053 67 $75,193 67 which the Comptroller has included in the Sinking Fund applicable to the payment of the residue of the Canal debt, and which the Auditor does not include. The amount carried to the Sinking Fund under section one, is fully sufficient to pay the balance due on the debt originally incurred for the construction of the canals, and known as the Canal debt of 1846. The extinguishment of this debt makes a further annual appropriation of one million seven hundred thousand dollars (1,700,000) no longer necessary, and enables the Legislature to apply the surplus revenues to the immediate payment of the General Fund Debt and enlargement loans, in accordance with the provisions of sections two and three, of article seven of the Constitution. The Auditor of the Canal Department reports, that the balance due on the General Fund debt for the payment of which the canal revenues are chargeable, is four million five hundred and fifty-four thousand six hundred and forty-seven dollars and eighty-six cents. ($4,554,647 86). The annual appropriation of one million five hundred thousand dollars ($1,500,000) hereafter required by said section two, will be sufficient to pay the principal and accruing interest of this debt in less than four years. The debt contracted by virtue of the provisions of said section three, for the enlargement and completion of the canals, amounting, on the thirtieth of September last, to ten million three hundred and twenty-four thousand one hundred dollars ($10,324,100), matures on an average in less than six years. To supply the Sinking Fund with the means to pay the interest and redeem the principal of this debt as it falls due, will require an annual appropriation of two million three hundred and forty thousand dollars ($2,340,000). Funds have been provided for the payment of all outstanding claims and liabilities against the State, except such as may have arisen during the last year for awards made by the Canal Appraisers for lands appropriated or occupied for public purposes. The amount of business transacted upon the canals, their general condition, management and supervision, compare favorably with any previous season. Their revenues have been nearly half a million in excess of those of 1867, while their current expenses, for care, superintendence, and ordinary repairs, have been over two hundred thousand dollars less than the annual average for the four preceding years. It affords me great pleasure to congratulate the Legislature and the people of the State upon the fact that the surplus revenues of the canals for the past fiscal year have been sufficient to pay the balance of the canal debt of 1846, satisfy the other requirements of the Constitution, and contribute over a hundred thousand dollars "to defray the necessary expenses of the government." The Erie canal, by its geographical position and its physical characteristics, has a special and an important relation to the commerce and business not only of our own State, but of the populous and rapidly growing communities of the great northwest. Connecting the Hudson with the lakes it is an indispensable link in a chain of water communication, which continues to be of great power and value notwithstanding the improvements in the methods of land transportation which are characteristic of our times. This work is a trust for the people of this State, whose enterprise and capital have created it; but it is to be administered in a spirit of liberality toward those great populations whose growth has been fostered by it, and whose welfare it continues to affect. To maintain it in a condition of efficiency, and to improve it in a practical manner, as the necessities of business from time to time demand, is our interest as proprietors, and our policy with reference to the commerce of the State and country. To protect it from embarrassment, arising out of improvident expenditures, ill-considered changes in its structure, or charges upon its revenues, growing out of other undertakings, is an obligation clearly resting upon us. The general plan of its construction and its adaptation to the business for which it was intended, provide a convenient, easy, and an economical means of transportation. The complaints that have arisen, some of which have been made the occasion of demands for fundamental changes in the work, have been provoked mainly by failures in the administration. The most unnecessary, as well as the most mischievous, of these failures has been the allowing of the water-way of the canal to become narrow at the bottom, and shallow, by neglect to remove the gradual accumulations of earth incident to the use of the work and the lapse of time. The consequences have been that the flow of water has been obstructed, its supply lessened, especially on the short levels, the movement of the boats retarded, the time of transits lengthened, and the cost of transportation increased. Frequent complaints, of a serious character, have also arisen from the failure to make provision for prompt repairs, for keeping the locks in efficient working order, and for doubling them when necessary. All persons doing business on the canals will agree that these evils have been much less during the navigation season of 1868 than before. During and for some time prior to the season of 1867, they were so serious as to greatly impair the efficiency of the canals and to create very extensive dissatisfaction among all persons engaged in the business of transportation. I do not propose now to speak at length in regard to the specific improvements to the making of which such surplus revenues as the State may have at its command should be applied. Upon this subject I respectfully refer you to the able report of the State Engineer, of which I ask your careful consideration. Besides such general improvements as experience suggests, and the demands of commerce require, it is a constant duty, as well as the best economy, to keep the canals at all times in thorough repair, and in the best and most efficient working condition. It is especially important, that the water-way be restored to its full dimensions, and even be incidentally and progressively enlarged. The considerations which I have submitted are applicable to all the canals in proportion to the extent of their business. With regard to the present contract system for repairs to the canals, I beg leave to call your attention specially to the following extract from the report of the State Engineer: "The present system of repairs has proved a great disappointment to its early advocates, and as an experiment, has wholly failed in protecting the interests of the State, and in preserving and maintaining our public works. It has proved to be anything but economical to the State, or beneficial to navigation, and its repeal is earnestly desired by all directly interested in the navigation of the canals, and strongly recommended by all the present and retiring canal officials." These views of the State Engineer meet with my full approval, and I unite in his recommendation. In concluding these remarks, I desire to enter my earnest protest against the proposition, which in some quarters has met with favor, that it is the duty of the general government to interest itself in our canals, and ultimately to acquire control of them. Our State has a just pride in its public works, and is quite competent to take care of them. To foster and protect them, to adapt them fully to the public necessities and to the growing demands of the internal |