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FOR THE AFFIRMATIVE. Andrews C. G. Cornell Kline

Parsons

White Bennett Crowley La Bau

Platt

Wilbor Campbell Folger

Lent

Sessions Williams
Chambers Gibson

T. Murphy Stanford Wood
Collins
Godard
Nicks

28 Ordered, That the Clerk deliver said bill to the Assembly, and request their concurrence therein

The Assembly bill entitled "An act to incorporate 'Wappinger's Turnpike and Navigation Company," was read a third time.

The President put, the question whether the Senate would agree to the final passage of said bill, and it was decided in the affirmative, a majority of all the members elected to the Senate voting in favor thereof, as follows:

FOR THE AFFIRMATIVE.
Andrews C. G. Cornell Humphrey O'Donnell Sessions
Barnett Crowley La Bau

Parsons

Stanford
Bennett
Folger
T. Murphy Pierson

Wilbor
Campbell Gibson

Nicks
Platt

Williams
Collins
Godard

22 Ordered, That the Clerk deliver said bill to the Assembly, with a message informing that the Senate have concurred in the passage of the same, without amendment.

The bill entitled "An act for the relief of Charles E. Case,!' was read a third time.

The President put the question whether the Senate would agree to the final passage of said bill, and it was decided in the affirmative, a majority of all the members elected to the Senate voting in favor thereof, and three-fifths of said members being present, as follows:

FOR THE AFFIRMATIVE.
Barnett

C. G. Cornell H. C. Murphy Pierson White
Bennett
Godard
T. Murphy
Platt

Williams
Campbell Humphrey Nicks

Sessions Wolcott
Collins
La Bau
O'Donnell

18 FOR THE NEGATIVE. Chambers Gibson

Kline

Stanford Wilbor Ordered, That the Clerk deliver said bill to the Assembly, and request their concurrence therein.

The bill entitled "An act to amend an act amending 'An act authorizing the Canal Board to construct a highway bridge over Black river improvement, between the towns of Denmark and Crogban, in the county of Lewis,' passed May 12, 1865, passed April 10, 1866," was read a third time.

The President put the question whether the Senate would agree to the final passage of said bill, and it was decided in the affirmative, a majority of all the members elected to the Senate voting in favor thereof, and three-fifths of said members being present, as follows:

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Ordered, That the Clerk deliver said bill to the Assembly, and request their concurrence therein.

A message from His Excellency the Governor, was received by the hands of his Private Secretary and read, in the words following:

STATE OF NEW YORK-EXECUTIVE DEPARTMENT,
ALBANY, April 11, 1867.

} To the Senate : I herewith return without my approval the bill entitled “An act regulating the carrying of passengers and property on the New York Central and other railroads of this State."

Section first of this bill declares that "it shall be lawful for the New York Central Railroad Company hereafter to demand and receive two and a half cents per mile for each and every passenger transported on their road, with his or her ordinary baggage. The second sectiou provides that “it shall be the duty of every railroad company in this State to carry freight offered to it from this State with as much dispatch as possible; and all freight offered at any freight station of any such road, to the extent of the capacity of the company's warehouses at the place where offered, shall be sent therefrom within ten days after the receipt of such freight, unless prevented by accident, the direction of the consignee, or unavoidable causes; and no discriminations in regard to dispatch shall be made in favor of freight from other States."

In 1853 the Legislature passed a law authorizing the consolidation of the “Albany and Schenectady Company, for shipment on its road, and Troy, Utica and Schenectady, Syracuse and Utica, Rochester and Syracuse, Buffalo and Lockport, the Mohawk Valley and the Syracure and Utica direct, Buffalo and Rochester, Rochester, Lockport and Niagara Falls Railroad Companies, or any two or more of them.

The passage of this act was urged upon the ground that it would facilitate the transit of passengers and freight between the sea board and the West. The charter of some of these roads, when first incorporated, restrained them from carrying freight of any description. This restriction was, from time to time removed by the Legislature, until the right to transport freight throughout the entire year, was conferred, upon the condition, however, that such freight should pay to the State tolls equal in amount to which they would have been subjected had they been transported on the canal. The supposed necessity of protecting the State revenues, by preventing competition with the Erie canal, was the declared justification of this restriction. In accordance, however, with a more liberal and progressive policy, in 1851 the Legislature passed a law removing this condition, providing that "it should not be necessary for any railroad company in this State to pay any sums of money

into the Treasury of the State on account of the transportation of property on any railroad on and after the first day of December in the year 1851," thus removing all restrictions of this character upon internal commerce, and, in obedience to the demands of trade, allowed this withdrawal from the revenue of the canals, that the people might enjoy, in a larger degree the advantages of cheap intercommunication.

The act of 1852, above referred to, provided that when two or more of the railroad companies named in this act, are consolidated, said consolidated companies shall carry way passengers on their road at a rate not to exceed two cents per mile. Thus it will be seen, that while pursuing the wise policy of making every concession which could facilitate and lessen the cost of transportation, the Legislature was careful to protect the rights of the people by limiting the price which should be exacted of the traveling public.

Relief from this restriction is sought through the provisions of the bill herewith returned.

A bill containing similar provisions was, after careful consideration on my part, returned to the Honorable the Senate, without my sanction, on the 28th day of April, 1865. The reasons for withholding my signature then, as well as in the case at the close of the last session of the Legislature, press upon me with super-added force at this time, and impel me to like action. It was then urged in favor of the proposed increase of fare, that the inadequateness of the compensation did not afford the stockholders a proper return upon the capital invested. In my message to the Senate, referred to, I used the following language:

“Should the enhanced prices complained of continue to prevail, and the managers be thereby forced to forego the declaration of a dividend, the stockholders would not be then called to endure a burden more oppressive than has been sustained by many corporations and interests which have not had relief extended to them by legislative enactment. * *

"If experience shall not prove the embarassments, under which it is said to labor, to be but of a temporary character; and if the proposed reforms in its future management shall not secure to capital an ample recompense, I shall then be most willing to co-operate with the Legislature in affording such relief as may be wise and necessary."

Has this contingency occurred ?

Up to the time relief was first sought and the subject brought to the attention of the Legislature it was not claimed that the company, from 1853, had not had a period of almost uninterrupted prosperity. The revenue of the company for the year ending September 30, 1854, from passengers, freight and other sources, was $5,918,334.50, and for the year ending September 30, 1864, from the same sources, the receipts were $12,997,888.83, being an increase of $7,079,555.33. During this period, dividends were paid to the stockholders averaging above seven

An examination of the annual report of the company, made to the State Engineer and Surveyor, shows that the net earnings for the year ending September 30, 1865, amounted to the sum of $1,609,362.81-equal to 6 24-100 per cent. on the amount of the capital stock; that the value of the road and equipments was $32,701,919.56—being more than nine millions of dollars in excess of the capital stock of the company. In addition to which, it had other assets, being cash on hand, stock and bonds of other companies, bills receivable, and supplies on hand, amounting to over three millions of dollars more.

For a more full understanding of the average prosperity and condition of this corporation, I respectfully submit a comparative statement of the passenger and freight business for different years since the consolidation: Earnings from passengers for year ending September 30,

1853, upon the roads consolidated under the act of April
2d of that year...,

$2,829,668 For the year ending September 30, 1866..

4,360,248 For the year ending September 30, 1858..

2,532, 646 For the year ending September 30, 1861..

2,315,932 Earnings from freight for year ending September 30,

1853, upon the roads consolidated under the act of
April 2 of that year ...

1,835,572 For the year ending September 30, 1866..

9,671,919 For the year ending September 30, 1858...

3,700,370 For the year ending September 30, 1861..

4,664,448

per cent.

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From the above it will appear that the earnings of the road from passengers in 1866 over 1853 have increased 54 1-11 per cent.; 1866 over 1858, 72 1-6 per cent.; 1866 over 1861, 884 per cent., and that the earn. ings from freight have increased in 1866 over 1853 426 11-12 per cent.; in '1866 over 1858 161 5-10 per cert.; in 1866 over 1861, 107 9-25 per cent., so that the increased income of the road seems to be fully equal if not in considerable excess of the increased price of materials and labor for running the road. The comparisons hold good in the result of the operations of the road for the year 1866. During that year the road has paid for all repairs and expenses of every kind, including National, State and local taxes, and $1,377,915.38 for fuel, a large provision for the future, with six per cent. dividend to stockholders, leaving $486,630 cash on band as surplus earnings of the year–equal to nearly two per cent. on the capital.

The report of the company shows the net earnings for the last fiscal year to have been $2,039,014.21-equal to 7 83-100 per cent.; and that the total receipts of the road were $14,596,785.68, being an excess of $621,261.29 over the receipts of 1865. It thus appears that at the height of extravagant cost in running the road, the net earnings-although not fully distributed in dividends-equal more than ten per cent.-being more than in most other permanent investments which subject the individual owner to taxation. It is clear that the income on the nominal capital invested, is more than the interest paid by the National and State Governments, which with the advantage of the geographical position of the road and the general prosperity attending it, justifies the high market value of the stock as exhibited during the past year.

It must be admitted that this road is a great and important interest, in which the public feel a laudable pride, and I cannot doubt, would respond promptly and cheerfully to any just demand for its protection and prosperity. It is not enough to say that the road passes with easy grades over the most densely populated portion of the country, reaching thriving villages, large towns and populous cities, through well cultivated agricultural districts, studded with extensive manufacturing and milling establishments, which furnish an immense freight and passenger business at all seasons of the year. To these, the road is indebted for large and increasing patronage, and in return is supposed to give regular, speedy and economical transit to passengers and freight. Is is a case of mutual advantage; and mutual protection should be given and secured. I will not urge that experience has demonstrated the impracticability of organizing an incorporated company with unrestricted power to make demands on the public, that would not take undue advantage of the privilege. Organized or associated capital --so important to enterprize and advancement-may thus wisely be restrained from the tendency to encroach upon the rights and interests of the people. The just measure of privilege on the one hand, and of restraint on the other, is the true function of legislation.

With the large income of the Central Railroad Company, which cannot fail to be greatly increased, without increasing the fare—when prices fall to something like their former standard—the propriety of raising the fare at this time is not apparent. It will not be denied that there has been some falling off in the price of labor and material-not so rapidly, however, as was expected. Very few doubt that this decline will continue—it is to be hoped moderately-until stable rates are reached based upon specie value. Heavily laden as the people are with burdens, it may well be doubted whether they will sanction additional taxation to augment the very respectable profits of this prosperous corporation. [SENATE JOURNAL.]

99

If it were susceptible of demonstration that this company bad been suffering for a period from temporary and extraordinary causes, it might still be questioned whether it would be wise to grant relief unless the loss were greater than to other similar investments of capital, or such as threatened to impair the usefulness of the road, and then for only a limited period. It is certainly well that we should feel a joint and common interest in returning as rapidly as may be to a normal condition of business and values. It is evident, however, if the policy of relieving every interest adversely affected by the unusual causes of the past few years, prevails, that the public will lose one great incentive to efforts which are necessary to restore us to the natural and ordinary conditions which we all deem so desirable. Many have suffered in diminution of business or profits-perhaps no class of persons more than those who, from inclination or habit, have confined themselves to operations which only permitted legal rates of interest. Capital invested on bond and mortgage has hardly paid-after deducting national, State, municipal, county and town taxation-more than four per cent; and the same is true of capital employed in many other ways. It may be asserted of agricultural investments, generally, that the net income in the more favorable periods can hardly boast of the profits derived by the Central Railroad Company.

It must be borne in mind that this valuable franchise was granted by the State, not less for the public accommodation than for private gain. It is believed by many persons of good judgment, that the managers of the road could, in the exercise of rigid economy, reduce expenditures to an extent which would enable them to increase their present dividends without prejudice to the public good.

With these views earnestly entertained, and these reasons respectfully submitted, I return this bill to the Senate without my approval.

R. E. FENTON. The President put the question, "Shall this bill pass notwithstanding the objections of the Governor ?"

Mr. Pierson moved to lay the question upon the table.

The President put the question whether the Senate would agree to said motion to lay on the table, and it was decided in the affirmative, as follows:

FOR THE AFFIRMATIVE, Andrews Collins

Kline

T. Murphy Sutherland
Barnett
C. G. Cornell La Bau

Parsons

Wilbor
Bennett
E. Cornell Lent

Pierson

Wolcott
Chambers Godard H. C. Murphy Platt

Wood 20
FOR THE NEGATIVE.
Campbell Gibson

Nicks

Sessions White
Crowley Humphrey O'Donnell Stanford Williams
Folger
Low

12 The Assembly bill entitled "An act in relation to parks in the city of Brooklyn," was read a third time.

The President put the question whether the Senate would agree to the final passage of said bill, and it was decided in the affirmative, a majority of all the members elected to the Senate voting in favor thereof, and three-fifths of said members being present, as follows:

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Andrews Barnett Bennett

FOR THE AFFIRMATIVE,
C. G. Cornell Humphrey Nicks
E. Cornell L9 Bán

O'Donnell
Folger
Lent

Parsons

Stanford
Sutherland
Wilbor

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