MESSAGE OF GOVERNOR PENNINGTON OF NEW JERSEY, Transportation Company, and also between the State and the New Jersey Railroad and Transportation Company, which will require the attention of the Legislature. They arise upon the extent of the claims of the State for transit duties, and per centage on the transportation of passengers, reserved in their respective charters. I do not call it a conGovernment—Constitution-troversy, because it results from a difference of opinion be To the Legislative Council and General Assembly: Veto Power-Branches of Chancellor. tween the officers of these companies and the officers of the State, as to the true construction of those acts, and from no disposition, as I am assured to avoid on the part of the compantes a faithful discharge of their liabilities to the State. It is proper that the subject should be adjusted, and the right ascertained. The State can have no disposition to encroach upon the companies, but her just claims against them must he insisted on, and it will be your duty, representing her interests at this time, to see them maintained and recovered. The questions affect the revenue of the State, and should therefore not be passed by. By the Constitution of this State the power of legislation resides exclusively in the Legislature. To representatives elected annually, and coming directly from the people, with a full knowledge of their wants, it was wisely thought might most safely be deposited the great interests of society. While by the Constitution of the United States, and of several of the States, a restraining power over legislation is conferred upon the Executive, ours happily gives hun no negative upon the acts of the Legislature. The exercise of an authority by which the will of the people and their representa- By the act of March, 1832, provision was made for setives inay be defeated, must be at all times unwelcome, and curing to the Delaware and Raritan Canal and the Camden considering the character of our institutions, it is matter of and Amboy Railroad and Transportation Companies, (which some surprise that such a prerogative should ever have been companies had by an act of the preceding year been united engrafted upon them. That a Constitution like that of this into one.) the exclusive right, during the continuance of State, framed amid the convulsions of a revolution, and in- their charter, of transporting passengers and merchandise by tended only to serve in an emergency, should have proved railroad between the cities of New York and Philadelphia. so salutary, and secured for so long a period the essential The act declares that no other railroad should be built berights of the citizen is a circumstance worthy of our special tween those cities, to compete with the companies named, regard. It contains but twenty-three short sections, one of without their consent, reserving only to the State the right which bears evidence of its having been designed only as a to grant a charter for a road between New Brunswick and temporary measure, by providing that in case a reconcilia- the Hudson, which reservation was doubtless made from the tion take place between Great Britain and the Colonies, the fact that an application for such a charter was then pending, instrument shall be null and void. While it is perhaps less and which became a law in a few days thereafter. By this adapted to our present circumstances and the advance of act great power was conferred, no less than the entire and society, yet I am inclined to doubt whether a convention at exclusive right of way, by railroad, across that part of the this time would be likely to frame one more satisfactory or State over which not only the travelling between the two beneficial to the people. The simplicity of the instrument great cities of New York and Philadelphia, but from all is commendable. The Executive, Legislative and Judicial parts of our extended and rapidly growing country, must departinents, are sufficiently defined, and are generally, it pass. The con pany, as a compensation for this important may be said, satisfactorily arranged. Its worst feature is grant, agreed to transfer to the State one thou-and shares of that which unites the offices of Governor and Chancellor in the capital stock of the companies, and further stipulated the same person. The Chancellor by reason of the nature that the dividends on that stock, and the transit duties on of his functions, and the increase of the business of his court, the road, should amount to $30,000 annually. The divishould be a distinct and permanent officer, wholly withdrawn dends and transit duty do not, of late years, amount to that from political influences. This change, which I have no sum, but there is a deficit of several thousand dollars, and doubt would be generally approved, might well be made by yet under the guarantee the companies are bound to pay the a public act, after its provisions should be ratified by a vote, full amount of $ 0,500. This stock was transferred and is of the people. I feel no personal desire that even this change should be made, and merely suggested it on a former occasion from a sense of its obvious propriety. Although the subject met with favor from the Legislature last year, it was then deemed most expedient not to act upon it, from a suggestion that there was a growing disposition, in some parts of the State, for a Convention to frame a new Constitution. Far be it from me to interpose any objection to such a course, if the people desire it; but yet for myself I believe it safer to submit to the inconveniences of our present charter, rather than to incur the hazards of a radical change. In some of the States where the experiment has been tried, it is no common thing to hear the earnest wish that the old order of things were restored. It is confidently believed, that no community suffers less inconvenience from their State institutions than the people of New Jersey. They enjoy the protection of wholesome laws, made by representatives of their own choice, and administered in their respective counties by officers appointed by their authority; and that, too, at a small expense. The taxes are moderate, and the whole amount paid annually, in the form of salaries to the officers of the State Government, as will be seen by the Treasurer's statement last year, is only $13,720. A change of Constitution might better our condition, but it would be an experiment, and the result at least doubtful. Questions between the State and Camden and Amboy Rail still the property of the State, and the $50,000 are annually paid into the State Treasury. Had no subsequent acts been passed, the present difficulty would not have occurred, but the Legislature, by the act of March, 1837, authorized these companies to erect a railroad from Trenton to intersect the New Jersey Railroad and Transportation Company, and reserve to the State the same transit duties as were reserved on the road from Camden to Amboy. This transit duty the companies claim the right to carry to their account, to make up the $30, 00 for which they have given a guarantee to the State. The effect of this is to deprive the State of all transit duty under the act of 1837, until it shall amount to more than the deficiency under the first act required to make up the $30,000. The loss to the State by this construction will be several thousand dollars annually. I think this, from any view I can take of it, a perfectly plain question, and that the transit duty under the act of 1867, must be paid, independent of any provisions in the act of 1832. They have no connexion with each other, and must stand on independent grounds. This would be the construction if there was nothing in the last act upon the subject, but the fifth section of that act decides the question by declaring, that nothing in that act shall impair the right of the State to the shares it then held in the companies, or the interest or dividends accruing thereon, and to the transit duties for the transportation of goods and passengers, but that the State shall be and remain entitled to their said rights, privileges and emoluments, as fully as if this act bad not been passed. This is the first question depending betwes the State and these companies. Resolutions of the Legislature of Massachusetts. system rests, and there can be no security to the pub-most important interest will receive your fostering care, as it any other course. The only question is, whether the is certainly a subject of primary importance to the State and on of the banks is such as to justify further indulgence, society at large. epon that subject I repose with great confidence in your retion and prudence. By the returns which the banks to make, you will be able to judge of their present conn and course of business, and from its acquaintance with various districts of the State, the Legislature can justly mate whate ver necessity exists for further indulgence to e which continue in a state of suspension. The end to obtained by a resumption is so desirable that it should be isted on at the earliest day consistent with the ability and urity of our institutions. Until such resumption shall e place, there is an obvious propriety in limiting the cirlation of the non-specie paying banks to a reasonable mount according to their capital. The laws as they now and, require from all the banks payment of their debts inject pecie, and the acquiescence of the public in a deviation from his rule furnishes an assurance that hitherto its necessity has been appreciated. Condition of the Treasury. The Treasurer, under the act of 1838, will lay before you as soon as his accounts shall be audited by a committee, a particular statement showing the condition of the Treasury, and of the School Fund. I do not suppose this statement will vary much from the one made last year, or that you will find in these accounts anything beyond the ordinary disbursements provided for by law. The fiscal concerns of the State, are happily simple and limited, and will require very Jittle attention at your hands. While it would be gratifying to dispense with the ordinary State tax, small as it is, yet I am satisfied it cannot be prudently done at present. If the distribution of the proceeds of the sales of the public lands shall be made to the different States, as contemplated by the wise and just provisions of the Land Bill passed at the late session of Congress, I anticipate a sufficient receipt into the Treasury after that time to dispense with further taxation, and if that course should then be approved, to carry into ef fect several objects of a humane and philanthropic character, which I know are much desired by our constituents. When the money shall be received, it will then be time to legislate upon the subject. State Prison. I enclose a report from the Keeper of the State Prison.It will be found very satisfactory, and exhibits on the part of the keeper a commendable enterprise in that arduous and responsible station. The number of prisoners in confinement is 151, being one less than last year at this time. He reports the prison to be out of debt, with a surplus on hand of $1,272 6). He has adopted the true system of making all his purchases for cash, and his sales also, except to known and responsible contractors. I refer you to this report with pleasure, and with the expression of my conviction that the faithful and assiduous labors of the keeper have given him an honorable claim to your confidence and favor. The num ber of pardons during the past year is stated to be 13. It is proper to remark, that cases not unfrequently occur of convicts who come to the prison with broken constitutions, from previous habits of life, and the severity of continual solitary confinement is sometimes such as to require a pardon to save their lives. The keeper further reports that during the eight months he has had the charge of the prison, its operations have produced a nett profit, beyond its expenses, of more than five hundred dollars a month. This is the most favorable result that has yet been attained, and convinces me that its affairs have been administered with praiseworthy energy and economy. It should always be borne in mind that in none of the accounts which are exhibited of the prison, are the salaries of the officers included, or the repairs and alterations in the prison itself. School Fund. The Trustees of the School Fund will present their report during the Session, when such suggestions will be made on that subject as may be deemed necessary. I trust that this I herewith transmit resolutions of the Legislature of Massachusetts in favor of restricting the eligibility of the Presi dent of the United States to a single term, and in favor of a law of Congress directing the election of electors of Presi dent and Vice President to be held on the same day in all the States, and also in favor of distributing the proceeds of the public lands among the several States. These resolutions were adopted in March last, but this is the first oppor tunity I have had of presenting them, and I do so now, although in the meantime Congress has acted upon the subof the last named resolution in conformity to the wishes therein expressed. Quarter Master General's Report. The Quarter Master General's Report also accompanies this communication. The public arms will be found in good order and ready for use, though it is to be hoped that the day may be far distant when any necessity for such use shall arise. The recent disposition of the McLeod case has happily removed one of the irritating causes of dispute between this country and Great Britain, and we look with earnest hope to the pacific disposition of their respective governments, for an amicable and satisfactory adjustment of the long standing controversy concerning the North-Eastern Boundary. The feelings and the interests of both countries are alike opposed to a disturbance of the amicable relations which now happily exist between them, and a resort to arms for the adjustment of conflicting claims, which were better settled by negotiation, is, I am fully persuaded, strongly deprecated by the great body of the people in both. Suit to try the title of the Proprietors of East New Jer sey. There is a suit pending in the Supreme Court of the United States, to try the title of the Proprietors of East New Jersey, to the lands covered by water, in this State. The Proprietors claim to have the right of soil in all the navigable rivers, and in the bays and arms of the sea; and, as you will perceive, it is a case which reaches our oyster grounds, our fisheries, and our power to build wharves and make docks. This cause is of the first importance to the people of the State, and the claim should be resisted in every legal and constitutional manner. I enclose a full report of this subject, made to me by one of the counsel on the part of the State, which will explain the situation and character of the case. It will be necessary that you make a suitable appropriation for the argument of the case, the present winter. Pilotage. The Report of the Board of Commissioners for Pilotage, is herewith submitted. This report confirms the opinion I have heretofore expressed to you, that the business of the board is conducted with an energy and usefulness in the highest degree commendable. As no subject of a political character seems likely to disturb the harmony of your session, I cherish the hope that you will be able to discharge the responsible trust confided to you without any unnecessary delay, and bring your labors to a speedy close. I respectfully suggest that a return to the former usages of holding but one session is desirable and in accordance with the wish of your constituents. It is my present desire, Gentlemen, that your deliberations may result in promoting the best interests of the people, and that the same kind Providence whose protecting care has ever been over us since we became a free Commonwealth, and in whom is all our hope, will still continue to bless and prosper our efforts for the security and advancement of our common country. WM. PENNINGTON. TRENTON, October 26, 1841. The remaining question with the Camden and Amboy Company is of much less consequence, yet it is right and proper that it should be adjusted and put to rest. The companies insist that by the 23d section of the original "act to incorporate the Camden and Amboy Railroad and Transportation Company," passed 4th of February, 1830, the 3d section of the act of February 4th, 1831, and the 3d section of the act of 15th of March, 1837, they are bound to pay a transit duty only upon such goods and passengers as are brought from. and destined to, places beyond the bounds of this State. I do not perceive by a recurrence to those acts, that there is anything to limit the transit duty to the decision of the question, where the goods or passengers come from or are going to. provided they pass over the road from South Amboy to Bordentown or Camden, or from New Brunswick to Trenton. views of the question be right, the State is losing a considerable income which belongs to her, and which if we did not enforce, we should be unfaithful to the high trust which is confided to us. This is not a new subject, for it has received more or less consideration from the Legislature during the last and the preceding year, but as different views were taken of the right of the State, I have thought my duty distinctly to call your attention to the subject. The late Attorney General has expressed an opinion very much in accordance with those here given. I have been furnished with the views of the respective companies on these questions, and as it will enable you to see the grounds on which they act, and may aid you in coming to a just decision, I subjoin the reports which they have made to me for your consideration. Having discharged my duty in presenting this subject, it will remain for you to take such action upon it, as shall in your discretion seem most wise and proper. Morris Canal and Banking Company. The Morris Canal and Banking Company, I regret to learn from the Treasurer, have not paid the tax due from that institution to the State. They insist that as they have not employed their capital in the business of banking, but have expended it in the canal, they should not be compelled to pay the tax. This is a subject on which the Treasurer has no discretion, and he has therefore taken legal steps for its recovery, properly leaving the parties to make their application for any relief to the Legislature, where alone it can be afforded, if it shall appear to be due. Banking System. The questions with the New Jersey Railroad and Transportation Company, are of a somewhat different and more doubtful character. The first refers the time when, by the charter, they are bound to pay a tax of one-quarter of one per cent. upon their capital stock. The language of the 18th section is that from and after the completion of the said railroad, and after the expiration of five years, the said corporation shall pay into the Treasury of this State, yearly and every year, a tax of one-quarter of one per cent. upon their capital stock paid in," and after ten years the tax shall be increased to one-half of one per cent. Is this tax of onequarter of one per cent. payable at the completion of the road, or in five years thereafter? It seems to me that the Legislature intended to name five years for completing the road, and that the company should pay the tax at the end of that time. That no tax should be demanded while the road was in progress of building was reasonable, and it was also proper that time for its completion should be allowed, but it is not so obvious that the State should wait five years after such completion; nor do I think such is the intention of the law. The remaining question arises under the same section which provides" that in addition to the tax, if at any time thereafter any railroad should intersect or be attached to this railroad so as to make a continued line of railroads carrying passengers across the State of New Jersey, between the States of New York and Pennsylvania, then the Treasurer of the Company is required to make return of the number of passengers and the number of tons of goods transported over the whole line of the road, and to pay to the Treasurer of the State at the rate of eight cents a passenger, and twelve cents for every ton of goods so transported thereon in manner aforesaid.” The question is made upon the words," the whole line of the road." The company have a depot at the city of New Brunswick, but their road extends almost two miles further towards the city of Trenton, and it is contended that for goods carried from Jersey City to New Brunswick they are not bound to pay any transit duty, because that is not the whole line of the road. The charter of the company authorizes them to construct a road from Jersey City to the city of New Brunswick, and it is understood that the chartered limits of the city of New Brunswick extend as far south as the termination of the road, but in the case of goods unloaded at New Brunswick they claim an exemption from the demands of the State. The words of the charter justify this construction, and I cannot but think that such is the true spirit and intention of this section. In construing statutes we must look into their spirit and object. This tax was not to be imposed until a road should be built intersecting the New Jersey Railroad, and then only on goods passing over the whole line. I incline therefore to believe that the company is right in this particular, and that it is not bound to pay for goods and passengers unless they go over the whole line. This exemption, it will be observed, is only claimed to passengers and merchandise that stop at New Brunswick, and can affect only a minor portion of their bu-quence to the credit of the State and her institutions, as well siness: for all the charges on passengers and goods that do Fo pass over the whole line, which embraces the large amount of their business, the company have paid with prompt Dess. I commend this subject to your attention, from no desire to exact for the State anything more than is her due. If my The banking system has become incorporated with our institutions, and is deemed indispensable to any community where business is conducted upon credit. When confined to its legitimate objects, and in the hands of honest and prudent men, it subserves the best interests of society. But the usefulness of banks depends mainly on the integrity, circumspection and intelligence of the persons to whom this management is entrusted. The object of affording security by restrictions upon a charter, has proved fallacious, and experience has shown that we must look to other grounds for protection. While it is true that adversity may befall an institution in the best hands, the personal responsibilities referred to, constitute after all the surest source of security.The past few years have proved disastrous to all the business interests of the country; the rich have been made poor, and the most prudent have been overtaken in their caution. These embarrassments have naturally and unavoidably affected the banks of the country. I feel a just pride, however, in saying that, considering the times through which we have passed, the banks in no State of the Union have sustained themselves better than those in New Jersey. As a general rule, there is no doubt the officers and directors do all in their power to maintain the credit of their respective institutions. Located as we are between the two largest cities of the Union, we cannot fail to be more or less affected by their course in many operations, and when that is opposite, it follows that the eastern and western sections of the State are placed in different positions. This is peculiarly the posture of affairs at present; the banks in the city of New York pay specie, while those in the city of Philadelphia do not, and the banks in this State plainly show the influence of their locality. It is obvious, therefore, that one rule applied to all the banks in the State, would operate somewhat unequally, though it is in the highest degree desirable that one rule, and one only, should prevail. In reflecting upon the relative position of our banks I have felt it to be very difficult to decide on the true course to be pursued. On the one hand a prompt return to the payment of specie is of the first conse as to the business of the country, and on the other hand I cannot shut my eyes to the fact, that a too precipitous action may, as we have seen by the experience of other States, retard rather than advance the time for resumption. No other idea can be entertained by any other mind than that of returning to specie payments. It is the basis on which the most important interest will receive your fostering care, as it is certainly a subject of primary importance to the State and society at large. Resolutions of the Legislature of Massachusetts. whole system rests, and there can be no security to the public in any other course. The only question is, whether the position of the banks is such as to justify further indulgence, and upon that subject I repose with great confidence in your discretion and prudence. By the returns which the banks are to make, you will be able to judge of their present condition and course of business, and from its acquaintance with sachusetts in favor of restricting the eligibility of the Presi I herewith transmit resolutions of the Legislature of Masthe various districts of the State, the Legislature can justly dent of the United States to a single term, and in favor of a estimate whatever necessity exists for further indulgence to law of Congress directing the election of electors of Presithose which continue in a state of suspension. The end to dent and Vice President to be held on the same day in all be obtained by a resumption is so desirable that it should be the States, and also in favor of distributing the proceeds of insisted on at the earliest day consistent with the ability and the public lands among the several States. These resolusecurity of our institutions. Until such resumption shall tions were adopted in March last, but this is the first opportake place, there is an obvious propriety in limiting the cir-tunity I have had of presenting them, and I do so now, alculation of the non-specie paying banks to a reasonable though in the meantime Congress has acted upon the subamount according to their capital. The laws as they now stand, require from all the banks payment of their debts inject of the last named resolution in conformity to the wishes therein expressed. specie, and the acquiescence of the public in a deviation from this rule furnishes an assurance that hitherto its necessity has been appreciated. Condition of the Treasury. The Treasurer, under the act of 1838, will lay before you as soon as his accounts shall be audited by a committee, a particular statement showing the condition of the Treasury, and of the School Fund. I do not suppose this statement will vary much from the one made last year, or that you will find in these accounts anything beyond the ordinary disbursements provided for by law. The fiscal concerns of the State, are happily simple and limited, and will require very little attention at your hands. While it would be gratifying to dispense with the ordinary State tax, small as it is, yet I am satisfied it cannot be prudently done at present. If the distribution of the proceeds of the sales of the public lands shall be made to the different States, as contemplated by the wise and just provisions of the Land Bill passed at the late session of Congress, I anticipate a sufficient receipt into the Treasury after that time to dispense with further taxation, and if that course should then be approved, to carry into cffect several objects of a humane and philanthropic character, which I know are much desired by our constituents. When the money shall be received, it will then be time to legislate upon the subject. State Prison. I enclose a report from the Keeper of the State Prison.— It will be found very satisfactory, and exhibits on the part of the keeper a commendable enterprise in that arduous and responsible station. The number of prisoners in confinement is 151, being one less than last year at this time. He reports the prison to be out of debt, with a surplus on hand of $1,272 6). He has adopted the true system of making all his purchases for cash, and his sales also, except to known and responsible contractors. I refer you to this report with pleasure, and with the expression of my conviction that the faithful and assiduous labors of the keeper have given him an honorable claim to your confidence and favor. The num ber of pardons during the past year is stated to be 13. It is proper to remark, that cases not unfrequently occur of convicts who come to the prison with broken constitutions, from previous habits of life, and the severity of continual solitary confinement is sometimes such as to require a pardon to save their lives. The keeper further reports that during the eight months he has had the charge of the prison, its operations have produced a nett profit, beyond its expenses, of more than five hundred dollars a month. This is the most favorable result that has yet been attained, and convinces me that its affairs have been administered with praiseworthy energy and economy. It should always be borne in mind that in none of the accounts which are exhibited of the prison, are the salaries of the officers included, or the repairs and alterations in the prison itself. School Fund. The Trustees of the School Fund will present their report during the Session, when such suggestions will be made on that subject as may be deemed necessary. I trust that this Quarter Master General's Report. The Quarter Master General's Report also accompanies this communication. The public arms will be found in good order and ready for use, though it is to be hoped that the day may be far distant when any necessity for such use shall arise. The recent disposition of the McLeod case has happily removed one of the irritating causes of dispute between this country and Great Britain, and we look with earnest hope to the pacific disposition of their respective governments, for an amicable and satisfactory adjustment of the long standing controversy concerning the North-Eastern Boundary. The feelings and the interests of both countries are alike opposed to a disturbance of the amicable relations which now happily exist between them, and a resort to arms for the adjustment of conflicting claims, which were better settled by negotiation, is, I am fully persuaded, strongly deprecated by the great body of the people in both. Suit to try the title of the Proprietors of East New Jer sey. There is a suit pending in the Supreme Court of the United States, to try the title of the Proprietors of East New Jersey, to the lands covered by water, in this State. The Proprietors claim to have the right of soil in all the navigable rivers, and in the bays and arms of the sca; and, as you will perceive, it is a case which reaches our oyster grounds, our fisheries, and our power to build wharves and make docks. This cause is of the first importance to the people of the State, and the claim should be resisted in every legal and constitutional manner. I enclose a full report of this subject, made to me by one of the counsel on the part of the State, which will explain the situation and character of the case. It will be necessary that you make a suitable appro priation for the argument of the case, the present winter. Pilotage. The Report of the Board of Commissioners for Pilotage, is herewith submitted. This report confirms the opinion I have heretofore expressed to you, that the business of the board is conducted with an energy and usefulness in the highest degree commendable. As no subject of a political character seems likely to disturb the harmony of your session, I cherish the hope that you will be able to discharge the responsible trust confided to you without any unnecessary delay, and bring your labors to a speedy close. I respectfully suggest that a return to the former usages of holding but one session is desirable and in accordance with the wish of your constituents. It is my prein promoting the best interests of the people, and that the sent desire, Gentlemen, that your deliberations may result same kind Providence whose protecting care has ever been over us since we became a free Commonwealth, and in whom is all our hope, will still continue to bless and prosper our efforts for the security and advancement of our common country. WM. PENNINGTON. TRENTON, October 26, 1841. ww |