in the case of the treasurer, no provision had been made for the removal of State officers having charge of public funds, who had been made elective by the people of the whole State. The Convention, not undertaking at so late a period to devise a system, devolved that duty on the Legislature. This power has remained twenty-nine years unexecuted. It is a duty of the Legislature which ought no longer to remain unperformed. Applied to the Canal commissioners, who are agents not only in the application, but also in the custody and disbursement of the public moneys, and to the State engineer, who, with his subordinates, exercises great power over the expenditure by his estimate of the cost and certificates of the performance of work, it would be an improvement upon our administrative system in accord with the intention of the Constitution, with sound principles of government, and with the indications of experience. Provision ought also to be made by law for regulating the formation of the annual estimate for future expenditures. It ought not only to be the result of consultation between the Canal commissioners, but should also have the written approval of the State engineer as to the necessity and cost of the work, and of the comptroller as to its propriety, considered in connection with the financial administration. It would doubtless be a valuable improvement to create a paymaster, appointed by the commissioners of the Canal Fund, who should be accountable to the auditor, and should make all payments on the certificates of the Canal commissioners and the State engineer. With these provisions the control of the State engineer over his subordinates might properly be enlarged. I have deemed it my duty to look beyond the abuses practised in the letting of contracts, and to see if the materials have been delivered and the work has Other matters to be looked into. been done for which so many millions have been paid out by the State, and also to learn if the locks, walls, and other structures have been built in a faithful way and in compliance with the contracts. I am satisfied, from information I have already gained, that there should be an investigation of these subjects. It is my purpose, with the aid of the members of the Canal Board, to have an examination made of our public works, and to learn their condition. It may be too late to detect all frauds; but many may be exposed and punished, and a check put upon practices so destructive to morals, as well as to the public interests of the people of the State. Conclusion. It is clear that under the present system of canal management the people will not be relieved from taxation, the boatmen from high tolls, or the needed improvements of the Erie and Champlain canals be finished. It is in our power to gain these great objects by a wise and an honest policy of retrenchment, reform, and official responsibility. Unfortunately the abuses now practised against our canals and their commerce are exciting strong prejudices against these great public works rather than against the wrong-doers and the wrong-doing which tend to destroy them. Our duty is clear. Let us cut off the expenses which divert revenues from general improvement of the canals to local or individual purposes, and make every official, every employé, every contractor, feel that the laws you have just passed against fraud will be enforced; and then our canals will be finished, their commerce revived, and taxation will be lessened, not only as it oppresses the boatmen, but also all other classes of our citizens. There is no real antagonism between the boatmen and forwarders who seek a fair compensation for their services, the public who desire cheap transportation, and the people who justly claim some relief from the present intolerable pressure of taxation; their interests are joint. Whenever these classes are brought into a false position of apparent hostility, it is sure proof either of a bad state of laws or of an unfaithful performance of official duties. Whoever for illicit gain despoils or wastes the resources applicable to these objects is the common enemy of the boatmen and the taxpayers, who must unite to enforce measures of reform and redress. April. July EXHIBIT A. A comparative monthly statement of the tolls for 1873 and 1874. September October November December A statement of the amount of reduction of tolls which would result from the plan proposed by the Committee of the Canal Board, computed on the business of 1874. The reduction proposed is as follows: On wheat, corn, rye, barley, and oats, one third; on products of wood, one quarter; on merchandise, one half. Total tolls collected at the tide-water offices in 1874 on freight going West and North $233,200.72 EXHIBIT C. Statement of the sums derived from taxes applied during each of the several years to work on the canals, etc. 1872 Black River. $15,400.00 $1,367,188.77 3,639,078.28 Oneida Lake. 470,495.71 402,297.43 175,000.00 $25,000.00 1873 772,154.65 1,422,688.41| 69,544.75 101,158.68 50,000.00 1874 677,675.02 1,763,343.14 1,072,793.14 2,415,546.49 25,000.00 2,466,018.16 $2,485,426.18 $6,967,084.19 $716,555.79 $676,158.68 $115,400.00 $10,960,624.84 Sinking Fund as per Table No. 1 2,895,615.06 $13,856,239.90 The taxes levied were in excess of the taxes applied, as shown in this Table. 933,608.35 Total taxes levied for canal purposes $14,789,848.25 EXHIBIT D. Statement showing the sums derived from taxes to supply deficiencies in the Sinking Funds for payment of principal and interest of the Canal Debt, and to pay principal and interest of the Floating Debt, under the Constitution (Article VII. Section 12). |