The New York Herald Newspaper, January 10, 1879, Page 6

THE GOVERNOR'S MESSAGE Gratifying Condition of the Fi-| nanees of the State, CANAL FREIGHTS. Extravagant Cost of the New Capitol, DEBT AND REPUDIATION. Mischievous Interference with Insurance Companies end Savings Banks. "NEW YORK CITY, Resistance of the Legislature to Federal Encroachments Recommended. ALBANY, Jan. 9, 1879. ‘The following is the Message of Governor Robin- fon, which was detivered to the Legislaturo to-day :— Strate or New Youx, Executive CHampen, } Aubany, Jan. 9, 1879, To THe LEGIsLaTURE:— The event which first claims attention is your removal into the new Capitol. The condition of the a) [ag aren of last year has been so fur ful: i the Assémbly Chamber is substantially com- leted. The room-intended for the Court of Appeals as been. fitted up for the temporary use of the Senate, ya Court in the meantime occupying-the vid Senate Chamber. All the rest of the Duliding, except the Attorney General's: office, remains unfinished, Many millions of dollars and years of time will bo required to complete it, although the sum already expended upon it amounts to $9,276,615 36. My views in regard to the extravagant cost of the bu: Ing, its tations exterior and most inconvenient interior, have been frequently expressed, and they remain wholly unchanged. The subject of turther appropriations for the work will be presented in another part of this Message. sincerely hope that you will find the change con- ducive to your health and, comfort, and in every way so agreeable and convenient that you will not regret it. If the occupation of their new and gorgeous apartments shall lead the two houses of tl islature to so emulate the exalted virtues which have, at different times andon muny ocea- sions, adorned tho history of the old chambers that they shall enact only wise and good laws, that they hall honestly and faithfully exccute the great trust mmitted to them by the people, that they shall strictly obey the constitution and the laws, that they shall cutablish and maintain a higher tone ot public morality, the cnormous cost of the building will be repaid in something better than money. But if, on the other hand, no such effects appear, if the lament- able vices which have too often marked tho legisla- tion of the old building shall stain that of the new, if the extravagant expendituro made upon it is to stimulate protuse and wasteful appropriations to other objects, if, instead of eneeee ne. “plain and honest republican simplicity, it is to cultivate a weak and vainidesixe to imitate the mauners of European courts or to rival regal magnificence and imperial splendors; nay, more, if bribery and corruption, fol- lowing naturally in the wake of such influétices, shall soil the new chambers, the people will have cause to t the erection of such a Capitol, and to wish that the earth might open and swallow it up. I trust that you may be so enlightened and guided of the Divine Wisdom that you may chooége and follow the better path. STATE FINANCES. You will be pleased to learn that the financial af- fairs of the Stute are in a more satisfactory condi- tion than they have been at any time within a lon; series of years. It has no longer any general fund debt, any hounty debt, or any floating debt. These have ail ben a and y ished. A i rem: paid nant of the canal debt slone remains to be provided tor. The able and faithtul management of the finan- cial department has maintained a steaay snd unin- terrupted advance toward lower expenditures, lower taxcs and a rigid’ accountability tur all payments from the treasury. This is strikingly illustrated by- _. the following stat ent: iBleto tax wan: -» SUR.T2482 08 8,529,174 32 8,726,511 OL . oo 7.941,297 04 ‘The following statement gives a general account of the financial operations of the year:— ate balance in the treasury of all e funds, October 1, 1877............ $5,759,434 22 Aggregate receipts during the fiscal year Hiding September 30, 1818.....-.-7-+- 12,408,605 OL Total....... seeeee 18,163,939 23 Deduct payments during the year. + 18,870,055 69 Balance in the treasury Sept. 30, 1878... $4,293,883 54 The amount of receipts into the treas- ury, on account of the general fund revenue, during the year ending Sep- temiber 30, 187: + $6,097,469 29 The payments... “ Apparent deficiency han i 30, 1878.... $885,838 38 Sup) ry Statement. + Balances due from county treasurers. September 30, 1878, on State tax of 1877 $1,385,369 09 Add amount paid on account of 1878 appropriations, included in tax levy ot last year, payable in State treas- ury in April and May, 1879........... 1,159,017 01 * ‘Total... ssscsseeveceseese $2,644,386 10 Deduct apparent deficiency of the revenue September 30, 1878, as shown in pre- - 8 ceding statement. }885,898 33 Also balances of 18’ priations, unpald an force September 40, 1878. appro- in 1,162.481 59 Actual surplus September 30, 1878.... $1,391,904 51 FAVORABLE CONDITION OF THE CANALS. ‘The Leyislature will be gratified to learn that the new system of canal administration has fully met the most sanguine expectations of its friends. The effi- clency, economy und integrity of one responsible ex- ecutive head have been a, illustrated in the first i of the experiment. The Superintendent of Pub- lic Works entered upou the duties of his office on the ‘Sth day of February last. By his prompt aud ener- yetic exertions, favored by a mild spring, he was able 0 open the principal canals on the 13th day ot April and kept them open until the 7th day of December. During the whole period of navigation the canals have been kept in excellent order and the boatmen have had a very prosperous season. ‘The total tonnage for the whole season of navigation amoynted to 5,170,823 “tons, against 4,955,963 tons for thé f€ar 1877, showing an increase of 214,859 tons. At the same time there has been a large reduction in the cost of maintenance and operation, ‘The entire expenses of operating the canals for the fiscal year ending September 30, 1577, us reported by the Auditor, including salaries of officials and mis- cellancous expenses ¢ to the revenue of the canals, ainounted to, wens «$1,050,929 68 ‘The corresponding iter for the fiscal year cuding September 30, 1878, aggre- ate but. Reptsectevedescrssa, * 990,140 OF Showing @ decrease Of.........0-.e40<+ $910,680 71 ‘This saving is the more gratifying since, as above stated, the canals were not transferred trom the Com- missionors to the Superintendent until February 8 _ last, and tho new system had therofore been in op: ation less than cight months at the close of the fi: Itis but fair to add that, while the expen: decreased more than thit cont, been kept in excellent condition, and have been open to navigation 237 days during the season of 1814, against 214 in 1877 and Zit in 1476. ‘The net covenuie for the fiseal yeur ending Soptem- od BO, ISTH, WOK... ce seeeeeeeeee eens $244,002 Bs t revenne for the fiscal year ending September 80, 1877........-.sseeeeenee 8,031 33. <Aescemnene Showing an increase of.. 245,871 05 The following brief statement shows what has been achieved since the reformation of gross abuses iu-canal management was undertaken in Ls76: Amounts harerded See. Paisctions Coy | Repairs and er Bapenses Payable from Revenues. ned 1,409,466 83 AGT OLS 0, irs, Improvements, D aid from Proceeds of oe +. 16, 58 05 | purposcs is a specics of legalized rob Total Layments on Account of Canals, Bretuding Princi- pad amd Interest, Cunal Levt. + $9,842,892 75 2,751,608 72 + 1,069,844 19 + 1,818,142 48 tee ins SAT 02 ‘These figures are more eloyuent than words and muy be safely left to speak for themselves. N honest and intelligent mind can require any cont ment upon thent or desire any return to the old aud currupt methods. Along with the results thus chieved the tolls have beon réduced to # point lower than over before khowh, and a great many erticies bave been upon the free list. Although in my opinion the requirements of the coustutution rouder it probably dangerons to attempt further reduction of tolls it is matter tur congretu- lation that they have been brought to so low a point | that all the pn heres of free canals are feubstautially a:ta ned without the injustice of tuxiug the people tor their maintenance. : ‘OUR SPATE PRINONS, You will learn from the report of the Superin- tendenf of State Prisons that the reforms established in that department have been yoing on most suc- cessfully during thd past in ‘The excess of ex- penses over earnings in 1876 was $704,379 85, In 7, whyn only a, of bral noe was under the management of Superint it, the excess of expenses over the earnings was $369,048 08. In 1873 the excess of expenses over earnings was $229,071 83, , ASYLUMS FOR THE INSANE, It seems impowsible to meet fully all the calls for the care of the insane. The unnatural excitement in ull branches of basiness which prevailed during many years, aud the severe losses and disap) ments which resulted from the geueral collapse, added to the usual causes of mental disorders, have increased immensely the number of sufferers trom nervous and brain diseases. The amounts expended for construction upon the various asylums up to the ob of September last were as follows:— ica... + $1,437,559 31 Willard... 1,613,664 97 Poughkeepsie. 1,697,606 88 Buffalo... 1,096,352°91 Middletown. 629,030 41 dace TOtAl.... 20. seeeecseseesseereeece sess s oGO,374,273 48 CRIME NURED TH 7418 ax PODRHOUSES, Many complaints have been made to me throngh the Prison Assuciation and the Board of State Chari- ties of the wretched condition and bad management of most of the county jails and poorhouses, TF am bi apprehensive that most of these complaints are well founded. The jails arc represented as nurseries of crime and the poorhouses as models of inhu- manity, especially in their departments for insane paupers. I am not prepared to make any specitic recommendations for the prevention of theevils com- Jained of. It is probable that the reports of the Hoard of State Charities and the Prison Association may bring the subject to your attention in some practical form. In any event, you are yourselves undoubtedly acquainted with the condition of these institutions in your respective counties, and I can safely leavethe imatter to your own information and good judgment, carnestly urging you to omit 10 efforts to remedy the evils complained of whenever you learn of their existence, BINGHAMTON INEBRIATE ASYLUM A FAILURE. From conversation with several of the Tbecling managers ot the New York State Invbriate Asylum learn that they consider the experiment for the refor- mution of inebriates, as hitherto tried in the asylum at Binghamton, a complete failure. I have long been of. the sume.opinion. It may, without much ex- pense, be changed into a very commodious asylum tor the insane. 5 SHALL THE NEW CAPITOL BE FINISHED? An important question to be dixposed of by the Legistature is whether further uppiopriations for the building of-the new Capitol shall be made at the present session. The only necessity for rapid rogress hitherto urged has beeu theinconvenientand Tusaficient accommodation of the Senate and As- sembly én the old building. Ample provisions have now been made at a vast expense to overcome the difficulty complained of, Allthe important State offi- ces are more conveniently and comfortably situated where they are than they evercan be in the new Uapitol. The amount which has already been ex- pended is $9,276,615 36, and of this sum $4,300,000 have been drawn from the taxpayérs during the period of financial disaster and distress which com- enced in 1873 and still continues. The question then arises whether the taxpayers ought not to’ be allowed some respite, and in cousidering this ques- tion account should be taken of the widespread dis- satisfaction and sense of wrong felt by the people of the whole State at the deception practiced upon them and the violations of law committed almost at the outset of the enterprise. MORE THAN TWICE THE AMOUNT OF APPROPKIATION : EXPENDED. two successive years the people of the State woke assured that the new Capitol should not cost them to exceed $4,000,000, and it was mule a condi- tion precedent that the Commissioners should not proceed with the work except upon such plans and specifications as would insure its completion within tuat sum, ‘These acts have never been repealed or modified. They were at once violated and in effect nullitied for all time by the deliberate adoption of plan under which the puldiag could not possibly be completed for four times the amount fixed as its maxunum cost, and the work has goue on until over $9,000,000 have been expeuded, instead of $4,000,000, aud there is no reason to expect that the building can now be completed on the scale and in the stylein which it has hitherto been carried on at a less total cost than five times the four millions to which it was originally limited. About three years ago a artial change pl was le, under the representation thut it would reduce the cost, but it had little effect. It was too late. A mill- ion dollar tax cuts deep into the shrunken resources: of the pedple. ‘They are ill able to" pa it. Nothing can justity its levy but stern necessity. That neces- sity no lonyer exists. They are staggering under a ‘vast load of local debt dnd taxation, and every dollar taken by the State lessens their power to enduro these local demands. In the light of all these cir- cumstances and the unwelcome fact that the care of this mammoth building, when completed, will an- nually cost # fabulous sum, I urge that all appropri- atiun be stopped tor the present. . THE SLATE TROOPS. Tho National Guard at present consists of seven divisions, thirteen brigades, one regiment und twelve separate troops of cavalry, one battalion and ten seperate batteries of urtillery, and twenty-three regi- ments, six batt and thirty-one separate com- panies of infantry; in all compri: 23 commis sioued officers and 18,885 non-commissioned officers, musicians and privates, making an aggregate force of 20,203. Several chauges have been made by disband- ing inefiicient skeleton ts und battalions with full complements of o: but very few men. instead of regiments and battalions where such or- ganizations were not needed and were not full and etlicient, the policy of organizing separate companies has been pursued with the best resuite aud Iam fully satisiied that the State militia, improperly named in the law as the National Guard, was never in so yood condition for effective service as it is at present. Fortunately the peace and order of the State havo been so well maintained by the civil authorities that there has been no occasion to call upon the military for any service during the year. COMMON AND HIGH SCHOOL EDUCATION In my tormer messages I have given fally my views in regard to the proper scope and extent of the schools that should be maintained by general taxa- tion. Allimy subsequent observation has confirmed the opinions expressed upon this subject. To the ex- tent of giving to every child in the State a good com- mon school education, sufficient to enable him or her to understand and perform the duties of American citizenship and to carry ou intelligently and success- fully ‘the ordinary labors of life, the common schools are and should be objects of the deepest concern to the whole community. To the few who desire and are capable of a still higher education, and who have an ambition to shine as professional men and in the arts of literature, music, painting and poetry, the door is wide open for them to win distinction in those callings. But to levy taxes upon the people for such ry, and even the recipients come to know it, Nine in ten of those educated in the so-called high schools at the public expense would far better pay their own bills than to haye them paid by the people of the State. ‘These views ure s manifestly just that I have no doubt they will ultimately prevail. CONDITION OF THE SCHOOLS, The following is a statement of the number and condition of the common schools and the number of pupils instructed in them during the past year:-— Statistics for the Year igo Som cage 30, 1878, Total receipts, meluding ce On hand October 1, 1877. Total expenditures Amount paid tor t Amount paid for school how pairs, furiiiture, &e 1,968,429 67 Estimated value of js 30,147,589 00 11,824 11,270 Number of C jeyal term ot school. 19,948 Number of teachers emp! any portion of the year. 30,567 Number of children ‘atten 1,032,052 6,522 private schools......+4 113,864 Number of volumes in ‘libraries... dagsoess ‘751,594 Number of persons in the State between the ages ot five and twenty-one years.. 1,615,256 LOCAL DEBT AND REPUDIATION, While the State hus paid all ite debt, excopt about $8,000,000, and is rapidly reducing its expenses and taxes within reasonable bounds, most of the cities, couatics and towns of the State ar8 strugyling under w load of debt, large expenses and heayy taxation. In looking over the long line of sufferers from these urdens it seems almost incredible that mou of sense should have permitted themselves to be placed in such condition, Of course it never would have been doue except under the influences of a false financial system, which seemed to deprive men of their reason and of all capacity to forcsee the evil which they were bringing themselves and their children, They played With debt, and courted taxation as if for pastime, Many towns almgst buried themselves with bonds, is- sued for railroads which have never been buitt, and govered their farms with mortgages for which thoy huve received no consideration, Now that the illusion is gone they are deploring the misfortunes in which it has involved them. Some ot them are even hinting at the dishonor of repudiation. Others are: for legislativeinterference, They should understand that these coutracts must be carried out in food taith by those who made them, ‘The State can do nothing which will, in aay form, amount to an assumption of these obligations or any part of them, The first step to be taken by the looalitivs tow- ard their own relief ix to atop at once, and finally, bes making of any addition to theit present indebt- ness, + AN INTERNATIONAL PARK AT NIAGARA FALLS, It is recommended thut the State of New York shall co-operate with the Province of Ontario and establish an international park at Niagara Falls, and tuke incamires to suppress tye huckster and other nuisances at the famous resor! FISH AND GAME, ‘The gaino and fish laws yreatly need your atten- tion, ‘To preserve and increase our game and fish is each year becoming more important. I recommend the ropeal of that ot chapter 482 of the Laws of 1876 which gives the supervisors control of this mut- ter, and that, in place of the present mans of inco- herent legislation for the protection of game and fish, a single plain andcomplete act be passed cover. } ture, at the first pay it should be, i. BE ‘ion on the subject, ing tho entire statut wit ae and provisions for its ory ‘hb penalties for its violation enforcement. - REAPPORTIONMENT NEEDED. T regret that it is necessary for the fourth time to remind the Legislature that an enumeration of the inhabitants of the State was made in 1875, and that the constitution imperatively requires the Logisla- m after such enumeration, to reapportion the Senatorial and Assembly districts 80 that each shal! contain, as nearly as may be, an equal buwber of inhabitants, exch atiens, ‘Che re- quirement that dhis shall be doue is no more explicit than that it shull be just and equal when it is done. To make wn unjnst and unequal apportionment for the accomplishment of some other purpose than that intended by the constitution is, of course, @ very yreat und dificult labor, It requires expert skill in wrongdoing. But to e a tuir and eyual appor- tionment calls for nothing more than comimon sense, an acquaintance with the plainest rules of arithinctic and an honest dis] itionto do right. Yet in each year since the census was taken the Legislature has met, gone through its session and adjourned, without making any, apportionment w! er. ‘These tacts require no comment, and I make none, exvept to repeat the remark made in my last message reterring to thig subject:—"Certainly we cannot expect that the people will long continue to observe the ordinary restrictions and requirements of statute law, if their representatives who make tHat law utterly disregard and defy the especial mandates of the constitution they have salemnly sworn to support.” WORTHLESSNESS OF THE INSURANCE DEPARTMENT, In a State with such Pamense commercial, manu- facturing and mechanical interests, the business of fire, life and mariue insurance is of very yreat im- portance. Its magnitudeled to the conclusion that the Legislature should take charge of it, For the purpose of subjecting great corporations to the con- trol of just and general laws this was undoubtedly proper; but for the Legislature to undertake to ad- ininister the business in all its minute details was a step of more than doubtful expediency. The itermeddling of a State oficial is almost in- variably muschievous in its operation, and Tam informed that within the last seven years thirty life insurance companies have failed, involving a loss to citizens of this State of $36,927,000, This shows: how little protection the department gives. Iam therefore of opinion that the wisest legislatjon in re- gard to the Insurance De; ent would be to abolish it, aud to return its few necessary powers to. the Comptroller's office, whence they were taken, ‘This step I advise, believing that it will benefit the parties interested and much redownd to the credit ot the State. REVORM THE DEPARTMENT OF BANKS, ‘The same general rule naturally applies to tho business of bunking. It may be claimed that, so fur ax savings banks are concerned, the class ot ‘people who deposit their savings with them require some governmental guardianship. But even this is doubt- ful. The host of savings banks which have grown up as ifin a night, flourished for a time and then become insolvent could vever haye yained the con- fidence of the poor people whose litte all was lost by their operstions if character and credit had not been given to them by the pretence that the State was the protector of ‘ir in- terests. In 1877 the superintendent whom the State had chosen aud who had served for several years as guardian of these institutions was removed for negligence and incompetency, and, almost the entire time of the very faithful and efficient deputy into whose hands the work has fallen has been oc- cupied in saving what he could trom the ruin into which so many of the savings banks fell. It is also a question worthy of consideration whether, if the State will not leave people and corporations to man- age their own affairs in their own way, but persists in exercising 4 goverumental control over thei through such agents as it sees tit to appoint for that purpose, it ought not to be responsible to parties who suffer through the negligence or mulfeasaice of such ageuts. Acominend to your consideration such measures as will tend to amore speedy and less expensive mode of proceeding tor winding up the affairs of the in- surance companies and savings banks that have failed, so that parties who have suffered by them may ceive, at the earliest day possible, whatever may be ved from the wrecks of such institutions. FEDERAL INTERFERENCE AT ELECTIONS. A significant fact in connection with our recent election is the organized attempt of the federal au- thoritics to ihtertere with the suffrage of ‘our citi- zens. This seews to me w step upon dangerous ground, Tho scanty justification pleaded for it is that itis within the scope of federal authority to supervise the’election of members of Congress, In the exercise of this supervision the general yovern- ment protends to find the right of passiug on the qualifications of voters at the polls, and to make ar- bitrary arrests in the discretion of federal supervi- sors, thus | sagtemr the person arrested from vot- ing either for members of Congress or State officers, But the constitution of the United States provides that the qualifications of the electors of resenta- tives in Congress shall, in each State, be, those requisite for electors of the most numerous branch of the State Legislature. The-coustitution of our own State, by virtue of which you hold your official station, es what those qualifications are. It further casts upon you the duty of enacting laws to determine by prone proots the persons en- titled to the right of suffrage eby estab- lished. It is not fit that the Legislature of ao great State should sit calmly by while its Chiet prerogative is tori from its grasp, nor | become an Executive to fail of words when such an usurpation is at- tempted as the arrest by federal ofticcrs of the voter at the poll. In the na me of the people, whose high- est right is imperiled in this controversy, I protest against such an interference. I urge upou your notice the sate of permitting such proceedings to ass unrebukes Suifrege is u people's right, gnd, yy our organic law, its regulation is comumittefl to the State authorities. It has never been yielded to federal control, and a stern accountability will be put on any servant of the State who neglects to combat the dangerous precedent of federal interference with these reserved powers of the State. Twice betore has ‘this inn inent igre, its jurisdiction been |. ‘wice before have able and courageous ecutives made manly protest, in which the Legislature and the peopte have sustained them. The danger and the usurpation are not less now than tnen. ‘Asa question of highest moment, outweighing all party interests and temporary advautuge, I carnestly press it on your attention. A prompt and fearless protest on your part will stop this effort once for all. Your silent acquiescence in the wrong will certainly induce its attempted repetition. AFFAIRS OF THE CITY OF NEW YORK, In each of my previous annual messages, and in the reasons given for disapproving several bills re- luting to the government of the city of New York, I have expressed the opinion that a new charter, which should establish # local legislature for the city and leave the people to goveru ticmselves there, as else- where, was only practicable and complete rem- edy for existing evils, As yet nothing has been done in that direction. The “people tnere seemingly prefer to continue victims of bad legislation raticr than attempt to maintain ecli-government. Great commercial enterprise and the universal strug- gle for wealth seem to absorb all attention and to make men wholly indifferent to the laws which are uecessary, not only -for the preservation of their wealth when acquired, but also for their personal safety and comfort. To this general rule there are some honorable exceptions. it how much more suffering will be endured before the rule will be Seanad it is possible to foresee. The great debt which overhangs the city, the army of useless officals and the extrava- it salaries to them, are all due to ws which ,have been at various times by the State Legislature. Usually from one hundred to two hunared bills are introduced at each session of the Legislature relating to the government ot the city. There is no reason to doubt that a large number will be presented at the present session. Lo what subjects they may relate, or what provisions they may contain, it is impossible to know, What- ever they may be they should receive the closest scrutiny at your hands. It anything can be done within the limits of your constitutional power for the relief of the city trom the enormous saiarics aud taxes which the people are called upon annually to and | trust will be, done, ARE OF “SKILFUL” BILLS. 'The experience of the past has shown, however, that many bills originated ostensibly for such a purpose are 80 changed and manipulated on their passage through the Legislature by experts and men of sieil, who interweave the worst provisions along with the best, that it is necessury to exercise great care and YVigilauce in regard to them, ‘There is no need of ex- pert and extraordinary skull in the preparation of an honest bill for an honest purpose. ‘The lan- guage of such a Dill will be always plain simple understood. The ister and dishonest purpose is” usually con- ceuled under a skiltul arrangement of crafty phrases. It will be @ wine precaution to beware of bitte which are said to be skilfully drawn. 1 am also of opinion that bills which are of great length and involve a va- riety of subjects are apt to lead to bad results. Their real meaning becomes involved, their provisions are contlicting and the construction to be put upon them doubtful. A much better and sater method will be to pass only such bills as ombrace & single object and are clearly and piaiuly expressed. But in this, as in all other cases, it should be borne in mind that one of the worst ev! f any community 1s @ mass of un- necessary, conflicting and doubtful legisiativeenact- qnents, Upon some subjects the statutes in relation to the city are already so numerous, coufured and contleting that even the courts are unable to con- strue them. Whatever may be done, no ad- dition should be made to this maga of confusion. ‘There is vow pending in the courts an action involving the coustitutionality of the statute estal lishing the Board of Estimate and Appurtionm I wnderstand thet the question will svon be before the court of last resort, and 1 trust important public interests involved in it to its early and thorough consideration and sion. ABOLISH HARBOR MASTERS AND PORT WARDENS, In the interests of commerce L renew thi dows it oe BUUZHER: tion of my last annual meswhye, that the offices of habor masters and port warde: should be abolished and their duties devolved upon the police, A few polivemen specially ¢l with these duties would be sutticiont, and would relieve the commerce of the port from the hoavy expenses now imposed for the services of @ large array ot hatbor masters and port wardens, CONCLUBTON, The functions which we exercise are com- mitted to us as @ sacred trust. The goverument which we control a# public officers is not our own; it belongs to those who placed us here, The laws which we enact do not express pur will; they are the yoice of the ra ‘The mdhey which we han- die belongs to them and not to us. We cai only tuke it from them tor the legititnate expenses of yov- erument, More than this ‘is robbery. Official yen- erosity is official crime, Every needless tax cuts some comfort from @ tho: homes, It means less food, less fuel, less cheer to nes [ae THE COMPTROLUER'S REPORT. Review of New York’s Revenues and Expenditures. REDUCING THE STATE DEBT. Increase of Taxation Recom- mended for 1879. TOWN AND COUNTY BURDENS Facts and Figures Which Pre- sage Free Canals, Comrrnotirr’s Orrick, ALDANY, Jan. 9, 1879. To THE SPEAKER OF THE ASSEMBLY:— Sin—I have the honor herewith to transmit to the Legislature my annual report, exhibiting the condi- tion of the finances of this State at the close of the fiseal year ending September 30, 1878. Lam, respectfully, your obedient servant, ? F. P. OLCOTT, Comptroller. . ALBany, Dec, 31, 1878, To THE LEGISLATURE:— Agreeably to the statute, which makes it the duty of the Comptroller to direct the fiscal affuirs of the State and to place the same before the Leyislature, with such suggestions a8 may be pertinent, pointing to the better administration of the finances, I beg to hand you the report of my department for the year ending September 30, 1878. ali the accounts kept by the State, with its various funds, into one condensed statement, which state- | ment ‘is as follo RECEIPTS AND PAYMENTS. Aggregate balance in the treasury of I the funds, October 1, 1877........ += 85,750,434 22 Agaregute receipts during the fiscal year sending September 80, 1878...........+12,404,505 OL -$18,163,999 23 3,870,055 69 its during the year. Balance in the treasury September 30, 1878. see caeees e+ $4,203,893 Sh ‘The s from which these aggregate re- sults are drawn. are the canal fund, the free school fund, the Elnira Female College educational tund, the general fund debt sinking fund, the bounty dept sinking fund, the general fund revenue, the Long Island Railroad Company sinking fund, the cominon school fund, the literature fund, the United States deposit fund, the college land scrip fund, the Cornell endowment fund, and the mil- itary record fund. “t REVENUES. The following condensed statement gives the rev- enues und expenditures for the last fiscal year, show- ing an apparent deficiency of $885,898 38:— Deticiency ot the revenue October 1, 1577. $332,375 16 Amount of warrants drawn on the tre: ury during the year ending September 80, 1878 (seo Schedule.11). Amount transferred to ti g funds for interest on money in the treastiry during the year, belonging to said fund, viz. School fund. . 7,022 00 Literature fun. United States dep 6,490,652 37 treasury during ye ending September 30, 1878 (see Schedule I)............ $6,096,952 48 Amount transferred from school fund for bond for Jands, 516 81 6,097,469 29 Apparent deficiency September 30, 1878... $885,838 38 The foregoing, statement presents the account of the general fund revenue as it is recorded on the books of this office, but owing to balances due from county treasurers at the close of the fiscal year, and paymonts on account of the appropriations of 1878, included in the tax payable in 1879, the apparent deti- ciency. of $885,838 33 3 not represent the true state of the fund at the date indicated. fhe supplementary statement gives the correct result aud shows a sur- plus of $1,391,908 51. In my annual report to the i, Legislature the surplus was estimated at $4,764,565 01. The result is, therefore, apparently $362,660 50 below the estimate; but as $800,000 of the $1,000,000 appropriated in 1878 for the New Cxpitol is included in the payments of the last fiscal year, and is excluded from’ the tix levy, the resuit is really $437,339 50 more favorable than the es- timate.’ In other words, if the. surplus had not been reduced for New Capitol purposes it would have amounted on the 30th September, 1878, to $2,191,904 51. The excess is accounted for by the re- duction of prison expenditures amounting to $199,048 80, compared with estimates based on actual appropriations, and an increase of $65,931 24 in the eurnings. The balance is made up b; $82,786 78 from the United States on claims and other miscellaneous receipts in excess of estimates, and balances of appropriations covered “tuto the treasury by the lapse of time. . DEBT OF THE STATE. On the 30th September, 1877, the total funded debt was $10,957,054 87, classified as follow: + $926,694 87 + 9,900,360 00 + — 130,000 00 + ¢0+0+$10,957,054 87 tember, 1878, the total funded debt On the 30th was $9,154,054 classified as follows :— + $122,604 87 + 9,020,360 00 11,000 00 ‘Total.. seseesesesevens «$9,154,054 87 ‘The eral fund State debt is all paid, and the item of $122,694 87, included above, represents the amount required to yield at the rate of six per cent, the sum necessary to ‘pay the Indian annuities, The balance of $11,000 of bounty debt, tor which funds are provided, had not been presented for redemp- tion at the close of the fiscal year. A balance of $1,012,328 18 in the canal sinking fund leaves the amount of that debt unprovided tor, September 30, 1878, at $8,008,031 82. The State debt, on the 30th September, 187% after deducting the unupplied bee os of the sinking fund, amount: WO... ee . On the wan as Ganainng © 30th Septem! 1878 (inclu $122,094 87), ts eeecece sees sores 8,130,826 69 Showing net contributions to the sink- ing rund Of...........cesee ces $576,937 16 ‘The actual reduction of the debt during the same period by cancellation being. $1,803,000 00 TAXATION ASSESSMENTS. ‘The gross valuation of taxable property im 19O8 WB... eee ee wee cece ‘The gross valuation in 1578 was. $1,766,080,140 578,000 Increase in ten years.......++0++++ $972,289,460 Decrease of valuation of 1878 compared with 1877, 361,718 it fiseal your is 2 9-10 ses:—For schools, 169-1000 mills, per chapter 289, Laws of 1878; for gen- eral purposes, 1631-1000 mills, per chapter 289, Laws 1878; for canals, 3-10 mill, per chapter 140, Laws of Total, 2 9-10 mills, hove tax of 2 9-10 mills on the present valua- tion will yield $7,941,207 94. For the ensuing fiscal year I recommend the follow- ing rate of taxation, viz.:—For the general fund, 1 127-1000 mills; for schools, 913-1000 mill; for defi- cicucy in canal debt sinking fund, 300-1000 mill. ‘Total, 2 17-60 mills, . THE GENERAL FUND DEBT, . On the Ist of July, 187s, $40,000 of the general fund debt became due and was paid. There is now no general fund debt upon the State, except the Indian annuities, which amount to $7,361 67 an- nually. The priney sum, which, at six per cent interest, would yield the amount of these annuities, is $122,694 87,"and this sum is expressed upon the books of the dey ment asadebt. Inasmuch as the six por cent stocl in the market of over twenty per ¢ gest to you the propriety of settli the Indians y treaty. Forty-six years ag eral fund debt was created, and tion, after so long an existence, makes proper & britf history of its inception, Early in. the Mit f the State the creating @ fund, the revenue from which wa ted z moet the ordinary expenses of ut. This fund was gathered from th taken for lands sold, the revenues trom quit te the stocks received from the general government the State on account of expenditures made in its b half, and various other stocks andgecurities, In the year 1800 this fund amounted to $3,750,000, So deep was the feeling in regard to its preservation that in that year @ tux of one mill was levied to meet an un- expected emergency which cartied the expenditures beyond its revenue. In 1817 this fund had a capital of $4,306,043 97, and to its revenue was added the auction and salt duties. Of this pital $1,500,000 was used for the mént of a State The State mills for = following pur, f the State command a premium would sug- policy was adopted of ex- debt created before 1826. pm 1817 to 1886 the suction and salt dutics were diverted to the Erie and Champlain is. Various appropriationssto the common school and literature funds, and the working ot chapter 206 of the laws of 1832, suthorizing the stocks aud bonds and mort- gages belonging to it to be sold or exchanged for cash, the availa to be applied to the ordinary ex- penses of government, resulted in the final ex- Snguisbatens of the entire capital of the fund in 185. So great was the solicitude of the lawmakers at that tine in regard to burdening the people with a direct tax that no State tax was levied between the ears 1826 and 1842--a period of sixteen years. Dur- ing these years the credit of the State was loatied to Thave brought together | ; NEW YORK HERALD, FRIDAY, JANUARY 10, 1879.-TRIPLE SHEET, 2 various roilroads, &e., which obligations the State in the main was forced to answ m these several causes the debt was creat: ich the past year bas seen finally extingnished. FROPOSAL TO REDUCE THE sOHOOL TAX, In the effort to decrease the bardens of the she it would seem as if something could be done in the direction of the school tax without seriously impair- ing the efliciency of the schuols, ‘This tax is ucarly Re times as great as it was fifteen years ago. I ud reconuucnd that the appropriation for this purpose be limited to $2,500,000, Add to this sum the income of the various educational funds and the total would amount to about $3,000,000, There is a balance of $54,084 64 in the treasury belonging to the common schoo! fund revenue. { would suggest that $50,000 of this stim be appropriated to the cap- ‘ital of the common schoo! fund, THE UNITED STATES DEvOmT FUND. Areport from this department without some sug- estions looking to gremter safety for this fund would ardly be recognized, A yet greater surprise would be to see the stiggestions acted upon. Tcan sce no reason why the commissioners should not be made county officers and the counties held re- sponsible for the safety of the loans. ‘The principal of this fund ix $4,014,520 71, Consid- eraply more than seventy-tive per cent of it is loaned upon mortgages, pursuant to a law passed April 4, 1837, and the several laws amendatory thereof. Its income is devoted to educational purposes, gnd as all losses to its capital are made good trom its revenue it would be the part of prudence to throw every pos- sible safeguard about its management. SPATE PRISONS AND CHARITABLE INSTITUTIONS, The resuit of the change in prison management can best be shown by a comparative statement, ‘Lhe time is not far distant when the prisons will be self- sustaining, aside from appropriations for permanent improvements, — It is hoped that this result will be reached before the close of the present fiscal year. Should the hope be realized, the transformation will have been effected long before the most sanguine ex- ted, The crowded condition of the prisous will ut an early day demand attention. I would revew, with additionaf emphasis, the recommendation con- tained in my report of last year, that the receipts of our charitable institutions be covered into the treasury of the State, and that an appropria- tion sufficiently lurge be made for their main- tenance. ‘Those institutions all have large miscel- laneous receipts coming to them trom the different counties and other sources. Under the present sys- tem these receipts are expended by each institution as it sees fit. Noaccountsare rendered and no voueh- ersare returned to this department, except for the moneys appropriated by the Legislature. Out of the vouchers received trom the expenditure of these miscellaneous receipts the iustitutions, if careful, cau svlect those which will pass the scrutiny of this office. Occasional carelessness in this particular gives the Comptroller 4 slight insight into the character of the expenditures, a notable instance of which occurred during the past year, when among the youchers re- , turned by a State institution the following bill from a celebrated caterer in Now York city was discoy- ered :— Dinner served, 125 covers, according to agree- ment $51 Freight, fare, express 5 ‘This dinner was given by the institution to a medi- cal society, and the expenditure is cutirely inde- fensible. Another vase deserving criticism is brought to light in oue of the Stute institutions, which publishes a Journal of Insanity, ‘Chis paper has been published tor many years, and from an account rendered to this department, at my request, I learn that since 1850 its bills huve been paid out of the funds of the institu- tion to the amount of $17,092 42. *Up to 1856 the in- stitution received from the paper $670 53. ‘Since 185¢ or for twenty-two years, the treasurer reports no re- ceipts irom the paper, but says:—‘I have understood and believe that they fave been spent in etlitorial services and the purchase of books for the asylum libraries.” “It would seem, then, that onc at leust of our charitable’ institutions not only has large miscellaneous receipts, the vouchers for the expendituce of which never come to this department, but that it has receipts the amount of which its own treasurer can- not state, and the vouchers to account for which he never sees. It would be dificult to properly stigma- tize such loose management. These instances would seem to indicate that much can be done in our insti- tutions looking toward economy and prudent man- agement. My report for 1877 contained the following:—“I would recommend for your consideration the policy of abolishing aj] local boards of trustees and the erection ot a system by which the different institu- tious shall be thanaged by one controlling power. As. itis, the responsibility tor loose and expensive management is not centred in any one. If we are to look tor improvement it can only be found in estab- lishing a fixed and detinite responsibility in place of the present plan, where there is ‘practically no ac- countability.”” ‘Lrespectfully renew this recommendation. Early in your session I hope to lay before you the results of a careful examination of the expenditures of the various institutions maintained by the State. TOWN AND COUNTY DEBE AND TAXATION. There is no debt upon the Statc now except the canal debt, which, after deducting the sinking funds, amounts to but $8,005,001 82, The finuycial condi- tion of the State stands out in marked contrast as against the condition of localities within its borders. ‘Yhe debt of the State-is merely nominal, and taxation for State purposes is too trivial to be considered in comparison with the enormous tetat-debts 0 oppressive burden of local taxation. The citizens of ‘is State were taxed in 1877, for State, town, county and school purposes, upward of $50,000,000; add to this eum the direct and indirect taxes paid to the United States government by our citizens, which are calculated to amount to $50,000,000, and we have the rumous sum of $100,000,000 annually taken from the pockets of the people to support govern-’ ment. The aggregate of the town, county, vil- lage and city debts will at this time approxi- mate closely to $250,000,000. It is preposterous to hope that a community steggering under such an overwhelmin, burden can be pros} us. No schemes of inance looking to reliet trom further issues of irredeemable paper are to be tolerated. ‘Too many of the evils of the hour are due to this financial heresy to permit an increase of them. The older nutions of the world are sufferihg even more severely than are ye. ‘The countries who use the gold stand- ard, the countries who use the double standard— gold and silver—and the countries who use the paper standard are all suffering alike. An evil existing in a locality is attributable to local causes; but world- wide evils must be the result of worldwide causes. The worldwide evils of the nations to-day are debt and taxation. ‘To no other causes can the universal distress be laid. Capital and labor suffer alike, and trom the same cause. The only relief to either must come from a rigid economy in public expenditures. ‘The returns from the local assessors in our State for the year 1877 place the value of our real property subject to taxation at $2,373,409,540, and our per- sonal property subject to taxation ‘at $364,960,110, ‘The assessment of the real Loo ap Shag, igi inate to its real value, but itds plain 0 assess ment of personal property is far below the true amount. A proof of this-fact will be admitted when it iy remembered that the valuation of personal prop: erty is returned by the assessors as $27,000,000 less than in 1865, while the valuation of real property is returned as #1,215,000,000 more than in 1865. Bor- rowing from the experience of our fathers I believe that # discrimination in favor of Personal property in the fate of taxation would result in bringing more of this class of property within the reach of the assessors, CANALS AND TRANSPORTATION. . Expenditures tor ordinary répairs and maintenance of canals, from February 1 to the close of navigation, for the years 1874, 1875, 1876, 187" ‘ F Amount * Navigation Closed, Expended, December 5, 187; $1,001,618 53 November 30, 1875, 1,005,814 50 December 1, 1676. ‘901,438 18 December 7, 187 4 851,729 46 December 7, 1878. conpuak, a 440,917 57 ‘These figures tell their own story and demonstrate that the reform upon the canals has been real and in the interest’ of good government. The importance ot the retention by our State of the trade of the Western and Northwesgern States is too manifest to need argument. In the constantly increasing develo p- ment of the agricultural pursuits of our country and in the growth of its manufacturing industries there is much of encouragement for the future. To these variouginterests there is no question of more vital importance than the question of cheap transporta- tion, Weare inclined to be thankfal when we are told that the crops are large, forgetting that the crops are valucless waless they wre marketable, Let us then, in the future, be thankful when transportation is cheap, The cotton fields of the South and the thines of Peansylvania are practically valuchess when the machinery and spindles of the country are still; the machinory and spindles are @ill when the crops of tho West and Northwest are rotting in the grana-* ries, ‘ransportation is king. Cotton, grain, machinery aud the tines are its vassals, ‘Transporta- tion if the middleman between the producer and the consumer; its tax is a barometer, marking the rise and fall of the nation's prosperity. - The expres- sion, “capital versus labor,” has led many unthink- ing people to believe that there is war between them. One is ws dependent wpon the other as animal exi ence is dependent upon air. ‘The irrepressible conflict is between transportation on the one hand and capital aud labor on the other, Itis more profitable to the r to Move a ton of freight a certain distance thin price than it is for him to move double the amount the same distance at half price. The in- terest of the transporter ie to move the minimum amount for the maximum price, What the coun- try needs for its prosperity is the reverse of this order of things—the maximum of movement for the minimum of price, He may be great who makes two blades of grass grow where one grew before, but tor greater will he be who causes to be carried two tons of freight at the cost of one berore, MR, OLCUTT'S PRO Y. «In @ producing country as vast in extent as ours the prime nocensity for true prosperity is cheap transportation. Tllose who prevent it are enemies of prosperity and oppore themselves directly to the lavor aud capital ot the peopie. -Withio very short titne the four great trunk tfaes connecting the West with the seaboard have taken united action, which, if maintained, practically places thein under one management, so far as the tax to be levied on freight and yore is cerned,, A committee has been appointed “to whom ali matéers in connection with east and west bound freight and passer; tes shall be referred.” A commissioner to whi wet is given is appointed to arrange differences between the com- mitteo - No one who hae the trae welfare of the country at heart can look upon this compact except with the greatest app sions, ‘The time cannot be fur distant when these corpora. tions, with their enormous capital and great lot of bonded debt, will so tax commerce as to compel the ° 5 ‘ | building of a freight road of three feet gauge betweem Chiwayy and New York, A road of this kint can probably be construmted and equipped at 4 much less cost than the amougt that is new extracted annually from Lue passeuger, fre auc miscellancous eurn- inys of the New York Central road and’its connections between the two cities. In the railroad report for, 1877 their earnings gre = as follows :— ‘ew York Central and Hudson Biver road ++ $26,579,085 96 Lake Shore and Mic roud, “Southern vee 18,214,434 14 $:39,793,520 08 zg. Total., ov The water route betw fords an outlet for the juonths in the year, wh: to commetce and the country’s prosperity, not for this water route, which is entively inde- pendegt of the railroad lines, the commerce ‘ween tho East and the West would be at the merey of the four trunk lines. The following table gives the average vate of treight by the water route between Chicago and New York on wheat (per bushel of sixty pounds) and corn (per bushel of fitty-six pounds) for eo yeara:— xlucts of the West for seven is of inealenlable benetit Were it Brie Canal Tolls, 4 Wheat, Corn, Wheat. Corn, le? si oi 7 a 3 ef 1 8 3 5 1 8 3 9 1.04) #! a ai]. 11.04] 3 3 7 y 1.08) 3 51.06) 2) AfOk| 8) Gi). 2 1).04) 8 3 ‘B}}.06} 2) 1).04) 8) s le 1 0.0 0 Ol}. 1 o.03} OF 0 9 1 0}.08] 0} 0 q 1 0}.03) 0) 0 Bi). pt 0}.03) 0} 0 1)). 0) 7.01) 9 By oe 0} 7) 0A] 9 3 Ai 0) 3).00T 9) 6 cy 0 B}.00} 9 6 From the alove table it will be seon that the water route has reduced the cost of transportation per ton from Chicago to New York from an average of $9 09 in 1861 to an average of $3.07 in 1878, and that the average rate of freight in 1574 from Chicago to New York by water, on « bushel of wheat, was 9.21 cents, while the tolls alone on the Erie Canal nine years ayo were 6.21 cents per bushel. This reduction in the cost of transportation by the water route has forced the rail routes to a simi- lar reduction during the season of navigation. During the months when nevigation is closed the rail routes udvance freights, and 2s @ necessary consequence check business. In January and Febru- ary, 178, the rail rates were advanced to @ point where shipments were practically suspended, In March the rates were lowered, and a largely increased movement was the result. ‘The constuntly varying yates of freight are injurious to business, as it is im- possible for the shipper to tell at what moment treights may be advanced to a point where trade is paralyzed. ‘It can be understood how, from natural causes, freights in winter should be higher than in summer, but it becomes a serious business when they are advanced so high that shipments are checked, NEW YORK’S GRAIN TRADE. It may be said thut the rail routes will not for any length ot fime maintain freights at a point destruc- . tive to their own business, bat the policy is to keep them ata point where they can receive the greatest amount of revenue from the smallest amount of freight. In the first eleven months of 1877 there iwas received at Baltimore, Philadelphia ‘and Boston of all kinds of grain, includ- ing flour ayg meal, in bushels New York rec@ved, in bushels... 71,949,193 95,156,699 Total at four ports..... ..esepceesceees 167105802 In 1878, for the same period, ‘the three cities received, in bushels. ++ 106,674,249 New York received, in bushels 144,468,619 eter ae nese ascevecessgecess 251,142,868 In the first eleven months. in 1877 New Yorkgre- ceived 59 9-10 per cent of the total receipta at the four seaboard ports, and in the first eleven ‘months in 1878 New York’s proportion was 5735 per cent. With an increase of receipts amounting to 84,096,976 bushels New York, with its two rai and canal, barely held itsown. Of the 144,468,619 bushels re- ceived at New York in the eleven months the rail- roads carried 77,522,556 and the water route carried 66,646,063, Leaving out flour and meal, of which the railroads carry nine-tenths, and confining ourselves to grain, the railroads carried in 1478, to New York, in bushels, 58,824,878, and the water route carried in bushels, 64,10%,097. Of the elevon months in which these receipts are had, the water route is available but seven. It will thus be seen that the water route is of immense im- { srtgernd to New York, not only as the micans of ringing through our State more than one-half of New Vork city’s grain receipts, but because, as has been shown, 1¢ has reduced the costo ge ool tion upon every bushel that reaches the By its reduction in the cost of transportation equal- ing sixty-six and two-thirds per cent in seventeen theres and the consequent effect upon railroad rates, it has been of vast service to the country’s pros- perity. OUR BALANCE OF TRADE, The most prominent incident in our finances the past year is the fact that we have exported of cur manufactured articles, of our cereais and of the va- rious products of cur soil and our industries $250,000,000 worth more than we ‘have imported from other countries. It is impossible to show how much of this result is attributable to the water route, but there can be no doubt but that it was a most important factor, It in said that the increased tonnage on the canals in 1877 caused the loading of 1,000 vessels at the port ot New York, and as the average amount expended by a sea- going vessel while in port is $2,000 the increased canal traffic caused $2,000,000 to be expended by sea going vessels alone. It is also estimated that the total gain to the State was $12,000,000, due wholly to the increased business of ls77. Our State needs all the business that the enterprise of its citizens can bring to it. We need it to.employ our capital. We need it to employ our laborers. We rfeed it to help us bear the onerous burdens of taxation. There must be a speedy end to railroad discrimination against New York; there must be a speedy end to special rates, which tend to concentrate business ip the hands of the few to the injury of the many; there must be anend to the excessive port and ter- minal charges. Should these and other abuses be continued you will soon be asked to use the power of the State to end them. RETURN OF SPECIE PAYMENTS., There is a natural diversity of opinion among our citizens as to the results of placing the finauces of the country on a specie basis, Many hail it as the commencement of a new erd of brospertt , and many look upon it with mrisagivings. Gnited States government owns $140,000,000 of coin, which is equal to more than forty per cent of its entire issue of legal tender notes; and when it is remem- bered that the banks hold about one-third of the legal tenders, it seems as if specie payments can be maintained, provided that the balance of trade re- muins in our favor. It is intimated that our exports forthe past year amounted to $650,000,000, and that they ere greater than our imports by about $250,000,000, This state of trade makes resumption practicable, and a continuance of it, even in a lesser degree, must render it permanent. ’ I am not one of those who believe that specie payments will neces- sarily produce prosperity, but believe that | real prosperity will result in ‘permaient specie pay- ments. ‘Real prosperity is not the result of profligate expenditures of public money, nor is it the result of unlimited issues of irredecmmable paper. These are the curses of true prosperity, as they are the weapons of the demagogue. Thrift and economy are the cor- ner stones of prosperity. By the help of reduced tax- ation and cheapeved transportation this country can practically teed and clothe the world. Capital for its returns and labor for its employment can look for no other help. Without them resumption will not avail on the one hand, nor will expansion on the other. Labor looks upon restmption with saspicion, fear- ing that cupital will -be, unduly benefited by it. ital looks upon expansion with fear, knowing that it can only result in evil. Unemplo; capital results in unemployed labor, and unemployed isbor equally results in unemployed capital, t capital aud labor bend their energies and power toward — Ove ernment and cheaper transportation atid both will be employed and true prosperity will be assured, *. BP, OLCOTT, Comptroller. FREIGHT TROUBLES IN PEMBINA. (From the Toronto Mail, Jan. 7.) Pemmixa, D. T., Jan, 4, 1879. Mr. Mackenzie's arrangements with the contractors for the Pembina brauch are producing their natural fruits, While passengers and freight trains rum with regularity south of the boundgry, there ts nothing but delay and confusion in Manitoba, There is not a single water tank north of the line, the result being that it is impossible during the present weather for freight cars to be taken through, Over twenty cars of freight, valued at over $17,000, have accumulated at the botndary, some of it household furniture and Christmas goods. The sidings are all full at Pembina, and there are no prospects of the dead lock being broken, The St. Paul ay Pacific line only under- takes to transport passengers and freight to the boundary, and it depends on circumstances when they get through. There are uo platforms, sheds or sidings on the Canadian side, and great dis satisfaction is felt at the want of forethought evineed in the absence of preparation. ‘Tho St. Paul and Pacific Company would take bold of it and work the road north of the boundary, only Mackenafe'’s ar- rangement with the contractors runs till the Ist of December next. Unless some special arrangement be made it seems unquestionable that next season's ime migrants will be carried:no farther than the beun- dary by rail. The matter causes great anxiety tm Manitoba, as’ fears are entertained that Canadian im- migration will be diverted to the American side. It is not improbable, owing to @ likelihood of the Pem- bina branch being unavailable for traffic im the early ion of uext season, that the St. Paul and Pacific way may arvange for the conveyance ot freight by steamers from Pembina to Winnipeg so svun as mevigation upeus,