A N S W E Tl
0 P
ROBERT E. STOCKTOI
IN BEHALF OF THE JOINT BOARD
OP THB
Ü. k R, CANAL AND C. k A, R, R. COMPANIES,
"OA
COMMITTEE OF THE SENATE OF NEW JERSEY,
IN RELATION TO
SCRREXDJiKING THE WORKS OF THE GOMPAXIES TO THE STATE.
READ AXD ORDERED TO BE PRIXTED.
TRENTON:
PRINTED AT THE" TRUE AMERICAN OFFICE.
1854.
£E -^77/
^ s 2~
REPORT
07
SPECIAL COMMITTEE ON JOINT COMPANIES.
To the Senate of Jíew Jersey :
The special committee appointed to inquire of the Delaware
and Raritan Canal and Camdqn and Amboy Railroad and
Transportation Companies, whether they are willing to sur¬
render to the state the whole of their works, and if so, upon
what terms, report :
That immediately after the adoption of the preamble and re¬
solution directing the said inquiry, your committee caused a
copy of the same to be delivered to the directors of said com¬
panies, with a request that they would give an early answer
to the inquiry. This they have caused to be done in writing,
and your committee herewith submit the said answer to the
Senate for their consideration.
THOS. W. MULFORD, Chairman.
Trenton, February 6, 1854.
LETTER.
Princeton, February 6, 1854.
To the Honorable
Thomas W.Mulford, Isaac Bonnell and Ralph C.Stults,
Committee of the Senate of the State of JYcw Jersey :
Gentlemen : I have the honor to acknowledge the receipt
of your communication, enclosing the following preamble and
resolution, passed unanimously by the Senate of New Jersey,
on the 26th of January, 1854.
To the Directors of the Delaware and Raritan Canal, and the
Camden and Amboy Rail Road and Transportation Com¬
panies :
Gentlemen : In the Senate of the state, the following
preamble and resolution were adopted to-day, without oppo¬
sition, viz :
Whereas, By laws heretofore passed by the legislature of
this state, certain exclusive privileges were conferred upon
the Delaware and Raritan Canal and the Camden and Am¬
boy Rail Road Companies ; and whereas, it is represented
that a portion of the people of New Jersey, are desirous that
these privileges should be extinguished in some just, honora¬
ble and legal manner ; and whereas, it is manifest that this
object, if desirable, can alone be obtained by and with the
consent of the companies ; therefore.
Resolved, That a committee of three members of the Senate,
i be appointed to inquire of the said companies, whether they
are willing to surrender to the state the whole of their works,
and if so, upon what terms.
The undersigned, the committee appointed in pursuance of
the said resolution, take the earliest opportunity to communi-
4
cate the same to you, and request as early an answer to the
inquiry, directed by said resolution, as may be convenient to
you.
THOS. W. MULFORD,
ISAAC BONNELL,
RALPH C. STULTS,
Committee.
January 26, 1854.
This preamble and resolution have been submitted to the
Joint Board of Directors of the Delaware and Raritan Canal Co.
and the Camden and Amboy Rail Road Company, who have
instructed me to communicate their views, not only in relation
to the subject to which you particularly refer, but also respect¬
ing thefurther prosecution of internal improvements in this state.
It is now almost a quarter of a century since the acts incor¬
porating those companies were passed, and a new generation
of public men has taken the places of those to whose far-
seeing wisdom the state is indebted for her present unexampled
prosperity.
This is therefore believed to be a proper occasion, to review
the relations subsisting between the state and the Joint Com¬
panies, and the general results of the state policy of internal
improvements, that those who are not familiar with the history
of those incorporations, may be better able to determine
whether any, and what change of that policy may be necessary
for the public welfare.
So much is said about the destitution of New Jersey, ot
railroad advantages, and of the oppression and slavery of the
state, under the rule of an inexorable monopoly, whereby they
say our growth is retarded, and the development of our re¬
sources obstructed, that it may not be without profit briefly to
enumerate the public works of New Jersey, and show to whht
extent they traverse equally every portion of the state, as well
as the general results of the New Jersey system of internal
improvements.
Beginning at the east, we find Hudson county the terminus
5
of several New Jersey railroads, as well as of the New York
and Erie railroad. Bergen and Passaic counties are crossed
by the Paterson and Ramapo railroad, while the former like¬
wise enjoys the facilities furnished by the Morris canal. Essex
county is perforated by three great lines of communication
with the interior, which will eventually afford her growing
cities the advantage of a connection with the great coal fields
of Pennsylvania, and with the far west. Morris county is
crossed by the Morris and Essex railroad and the Morris canal.
Sussex will soon have an extension of the Morris and Essex
railroad, while the Warren and Sussex railroad will pass
through nearly the whole length of the county east and west.
W arren will be covered with a net-work of railroads, travers¬
ing her valleys, and giving her farmers a choice of markets in
various directions. Hunterdon will have the Central and
the Belvidere railroad, and the Flemington branch. The
railroad and canal facilities of Mercer and Middlesex are not
surpassed by those of any county in the state. Somerset
enjoys the advantages of the Delaware and Raritan canal,
while the Central railroad passes through the very heart of the
county. Monmouth has the Camden and Am boy, and the
Freehold and Jamesburg railroads. Burlington has the Cam¬
den and Amboy, and Mount Holly railroads, and Bordentown
and Trenton branch. Camden has the Camden and Amboy, and
Camden and Absecom roads, which latter road extends through
Atlantic county to the sea shore. Gloucester, Salem, Cumber¬
land and Cape May will soon be connected by the West Jersey
railroad, with the whole chain of railroad communication, thus
ramifying into every section of the state.
Including the Delaware and Raritan, and Morris canals,
there are nine different lines of public works crossing the state
of New Jerseys from east to west, or east to south or north.
When those lines of railway, now in process of construction,
are finished, we shall have, including the canals, nearly eight
hundred miles of these artificial means of transportation and
travel in New Jersey, which altogether may then be estimated
to have cost upwards of thirty millions of dollars.
6
When a railroad shall be completed from Camden to Cape
May—from Mount Holly to Peinberton—from New Egypt to
Hightstown, and from Freehold to Tom's River, then every
county in the state will enjoy the advantages of railroad ac¬
commodation. New Jersey may then unroll her map, and
challenge any country to produce a comparable system of
internal improvement—a system so magnificent, so just, so
equally diffused, so pregnant with benefits, so costly in itself,
yet so cheap to her ; a system fraught with such results, can¬
not but command the admiration of the statesman and the
patriot. She can then exhibit results unparalleled in any
country or any age. Her system of internal improvements
will then display a redundant revenue, collected without cost
—the investment and expenditure upon the improvement of
her soil of more than thirty millions of dollars, drawn not from
the pockets of her own citizens, but chiefly from those of
capitalists abroad. Noble public works, comprising canals
and railways, perforating and extending over her territory at
least eight hundred miles ; her population increased in far
greater proportion than any of the old thirteen states ; her
lands augmented in average value beyond those of any other
state ; almost every farm in New Jersey brought within three
hours' ride of New York or Philadelphia. It is as if by some
necromancer's skill they had been taken up and transplanted
within sight of the spires and within hearing of the roar and
the bustle of those mighty marts of commerce and consump¬
tion. Her villages and cities growing with healthy vigor ;
her people free from state taxation. All these results she will
have realized, besides the large amount of $1,339,775 from
transit duties, and an average rate of fare cheaper than most of
the roads of the United States, without the expenditure of one
dollar from the treasury of the state.* And then, when other more
populous and powerful states are reeling and tottering under
debts incurred for their public works, and shrinking from the
horrors of repudiation, with every threatened financial crisis,
Newr Jersey, in the plenitude of her unencumbered resources,
will stand free and unshackled, prepared to breast unscathed the
See \ot^ 1.
• t
most disastrous revolutions which can disturb the commercial
and monetary world. If half the lands in New Jersey have
been augmented in value, by our public works, twenty-five
dollars per acre, then those works have added to the wealth of
the state more than seventy millions of dollars. But the fact is
that it appears (by the census of 1850) that the average value
of lands in New Jersey, notwithstanding the vast tracts of
barren sands, salt marsh, swamps and rocky mountain wastes
within the borders of the state, the average value of the farming
lands exceeds that of any state in the union. It is estimated
at forty-three dollars per acre, and has advanced in the last
twenty years, twenty dollars per acre. When, therefore, we
consider the rapid growth of our cities and villages, and the
concentration of wealth and business there, it should not be
considered an extravagant estimate when we say that the
public works of New Jersey, including the amount of their
cost, have increased the wealth of the state, at least one hun¬
dred and fifty millions of do'lars.
These are the rich results of the New Jersey policy—free¬
dom from state debt—eight hundred miles of railways and
canals—an immense augmentation of state wealth within twenty
years—nine distinct lines of public works crossing the state
north to south, or north-west to south-east—a railway in every
county of the state. Now, a state which has accomplished
such achievements, without incurring a dollar of debt, cannot
be said to behind the age. She is not delinquent in progress,
when compared with other states. The largest and most
powerful states of the Union, have incurred enormous state
debts, which they must transmit to posterity ; and when one
of these crisis overtake them, to which the civilized world
must periodically submit, as long as we indulge in the se¬
ductions of a boundless system of credit, the consequences
must be disastrous. But no such calamities are in prospect for
New Jersey. She has wisely secured the benefits of an ex¬
tended system of internal improvements, without mortgaging
her own credit or resources. When the storm paralyses and
prostrates other states, she will stand erect in the enjoyment
8
of unimpaired credit and strength. She will not have to tax
her people in the hour when they can least afford to pay. The
system by which New Jersey has thus enriched herself is sim¬
ple, comprehensive and just. It may well be questioned
whether any state, as a mere financial operation, ever made a
better bargain. Be that as it may, we desire to say a word or
two on the policy adopted by New Jersey in relation to de¬
riving a revenue from the transportation of freight and pas¬
sengers across the state. We have never heard any one
complain because New York, Pennsylvania or Ohio derived
revenue from the public works constructed by them. Had
New Jersey constructed her own works, probably we should
have heard no complaint. She has chosen to delegate that
power, reserving in payment for the privileges conceded, a
certain transit dut}^ It is no charge on the foreigner ; but
only a method of ascertaining the amount to be paid by the
companies. Instead of saying to the companies, you shall pay
us so much per centum on your capital, which is the plan
adopted in other states to collect the revenue from their public
works, the state says you shall pay us so much on the specific
business you do. A tax on capital is stationary ; on revenue
it increases with the increase of business.
Thus, in 1840 the transit duties amounted to $2.5,o85.00
" 1845 " " " " " 39,658.00
" 1850 " " " " " 68,089.00
" 1853 " " " " " 91,373.00
Had the former plan been adopted, there would have been
no augmentation of revenue to the state, no matter how much
the wealth and population of the country, and the business of
the companies might increase. The annual revenue derived
from the companies, at the usual rate of tax on capital, would
have been only fifteen thousand dollars ; but under the exist¬
ing arrangement, the revenue of the state increases with the
business of the companies.
But there can be no question as to the right of New Jersey
to tax passengers or freight passing over her public works,
whether made directly by herself, or under her delegated
9
authority. It is not true, (as has been repeatedly affirmed by
the enemies of the companies) that this transit duty is levied
altogether on citizens of other states, and not upon citizens of
New Jersey. On the contrary, the citizens of New Jersey
pay ten cents for twenty-seven miles from Trenton to New
Brunswick, or from Camden, Burlington or Bordentown to
Amhoy ; whilst the passenger from Philadelphia to New
York pays hut ten cents for ninety miles. Talk not of the in-
hospitality of taxing the traveler ; as well might we be called
on to bridge for free travel all our rivers, as to build railroads
O ^
and canals, and refuse to extract a revenue from them. It is
a legitimate source of revenue, and it ought so to be considered
by the public men of New Jersey. When New York and
Pennsylvania make their roads and canals free, it may be time
for New Jersey to discuss the question whether she will levy
transit duties on freight or passengers. It is a legitimate source
of revenue, and it ought never to be surrendered. It has been
' O
deposited in the hands of some of your most public spirited and
trust worthy fellow citizens, v^ho have watched ove., and for
nearly a quarter of a century protected it. It is now submitted
whether the time has not arrived in contemplation of intelligent
and patriotic Jerseymen when the joint companies should no
longer be permitted silently to be made the objects of oppro¬
brium and contumely. In some ages and some countries the
men who had achieved such results for the public welfare as
they have produced, would be deemed worthy of a nation's
gratitude. Statuary and monumental brass would commemo¬
rate their services.
But nevertheless, the joint companies are now, as they ever
have been, sensible of the great advantages which they, in
common with the people of the state, derive from their corpo¬
rate privileges, and have therefore always made them, as far
as it was in their power, subservient to the public welfare.
These privileges have been the means by which the control
and management of these great works have been secured to
citizens of New Jersey, and have enabled the joint companies
to construct lateral roads for the accommodation of agricultural
10
districts, which otherwise would not probably have been con¬
structed for many years. They also know that they owe their
existence, in a great measure, to the urgent demand on the
part of the people of this state for the construction of the
Delaware and Raritan Canal, which would not have been con¬
structed without them, as well as for increased traveling fa¬
cilities.
When the success and advantages of canal and railroad im¬
provements were, in the estimation of many, dubious or vision¬
ary, a cautious policy, after several years of discussion and de¬
liberate consideration, induced the state (following the example
of other states in deriving a revenue from her public works,)
to adopt the present system. The cardinal feature of this sys¬
tem of New Jersey is this—that whilst she derives almost her
entire revenue from the great works of her central thoroughfare
across the state, the privileges which she has conferred on the
joint companies have been deemed not incompatible, and need
in no case be considered incompatible with necessary or expe¬
dient improvements in any part of the state. It must be borne
in mind that at the time when the works of the joint companies
were authorized but few persons believed in the practicability
or productive value of the Delaware and Raritan canal—while
many predicted the utter failure of the railroad experiment.
But notwithstanding the doubts and gloomy forebodings which
seemed to pervade the public mind in relation to the success of
enterprises so novel and gigantic, the original corporators were
willing to proceed with their works according to the terms of
their original charters without additional legislation. But the
enlargement of the canal beyond the original dimensions con¬
templated, augmented, at a time of great financial difficulty,
nearly one-half the cost of its construction. Canals and-rail¬
roads cannot be built without money, and it became apparent
that it would be necessary to enlist foreign capitalists in the
undertaking. The general government was in vain invoked to
aid in an enterprise of great national importance. Every
proper expedient was resorted to to obtain aid from abroad,
but after every effort was fruitlessly employed to secure the-
11
means of completing this great work, the legislature became
satisfied that some other and greater inducement, and the most
perfect security, must be offered, or the construction of the
Delaware and Raritan canal could not be accomplijhed.
The supplements to the charters were therefore passed,|with
the hope and expectation that capitalists without the state,
would be induced, by the ample protection they afforded, to
advance their means for the construction of these public works.
Under the guarantee thus given, the money was obtained, and
these important improvements, at an enormous cost, forever se¬
cured to the state. Whilst the protection thus conferred on
the companies has not prevented the construction of other use¬
ful works in various portions of the state, it has, notwithstand¬
ing, been made the pretext for the most violent assaults, not
only upon the joint companies, but on the state and her legis¬
lation. It has been unjustly and falsely held up to the people
as an insuperable obstacle to the construction of railroads in
other sequestered portions of the state.
Now, whilst this is certainly t'-ue in regard to all speculative
schemes for railroads designed to be made through New Jersey,
on foreign account, for the benefit of individuals, and to defraud
the state of her revenue, it is not true as far as it respects any
important local public improvement by railroad in the state.
This is obvious, from the fact that charters have already been
granted, sufficient to cover almost the whole state with a net
work of railroads. The difficulty has not been in obtaining
charters for such local roads, but in raising the money with
which to construct them. It is this difficulty alone which has
prevented the construction of all the railroads required by the
people of New Jersey between Sussex and Cape May. The
joint companies, however, hitherto, as far as their means and
a just regard for the interests of their stockholders, of whom
the state is the largest in interest, would permit, have been
disposed with the sanction of the legislature, to encourage and
assist the construction of railroads in the southwestern coun¬
ties, to such an extent that it would seem now to be considered
as the established policy of the state that they should give their
12
aid lo any and every railroad projected for local accommoda¬
tion between the Delaware and Raritan rivers. The conse¬
quence of the recognition of this policy has been that the friends
of several projected railroads are now awaiting and soliciting
the co-operation and assistance of the joint companies. The
companies have not repudiated this view of their duties and
responsibilities. They have freely and cordially responded to
these demands upon their public spirit and resources, and they
are wihing still farther to contribute their aid to the develop¬
ment of the resources of the state, and to satisfying the just
expectations of the people. But the resources of the compa¬
nies, and a prudent regard for the interests of their stockhold¬
ers, will not permit them to go further in the prosecution of
this policy, without some additional legislation.
This will be more apparent and reasonable to every one
when we advert to other demands on our resources, of a more
imperative character, and which possess a prior claim over
that of any new work however meritorious or desirable. Rail¬
roads, during the past few years, have increased in number in
all quarters of our vast territory. The number of miles now
traveled annually upon railroads is probably double what it was
five years ago. The number of accidents, therefore, might
naturally have been expected to have been more numerous
during the past year than during any other preceding year.
The great loss of life which has signalized those which have
recently occurred, has very justly excited public attention, and
produced much solicitude for the improvement, not only of the
police arrangements of railroads, but for that of railroads
themselves. The frequency and fatality of these accidents
have not, however, lowered the tone of the public demand for
high rates of speed. This demand is urged without regard
to the condition or character of the superstructure of many
roads. Roads which were originally constructed with the
expectation that they would be used with locomotives not
exceeding eight or ten tons in weight, with a speed not exceed¬
ing twenty or thirty miles an hour, are now required to sustain
locomotives twice or thrice the weight originally contemplated.
13
propelled at the rate of forty or fifty miles per hour. It is
well understood that the reconstruction of such roads will be
necessary in order to adapt them to high rates of speed. The
construction of double tracks, and the dispensing with curves
wherever it is possible, seems to be called for by public opinion.
In all these improvements, however costly, it is the desire of
the joint companies to keep pace with the spirit of the age,
and the legitimate demands of a just and enlightened public.
Whilst they have not been hurried by hostile clamor and un¬
scrupulous vituperation, into precipitate and ill advised action,
they have at no time been insensible to the force of a dispas¬
sionate public opinion. They admit that the improvements
referred to are desirable, and that public opinion seems to re¬
quire them ; and they cherish a sincere desire to comply with
such demands to the extent of their ability. Were the joint
companies enabled, by legislative co-operation, to make these
improvements, then, in a short time, all the reasonable wishes
of the public, l especting a higher rate of speed and increased
security, would, we have no doubt, be realized ; besides, should
the additional legislation, to be adverted to hereafter, take
place, all those local works, referred to before in this commu¬
nication, which are desired by the south western counties,
might likewise be constructed on terms advantageous to the
people and the state. But the extension of this internal
improvement policy of New Jersey, beyond its present limits,
and the improvement of the principal lines of railroads belong¬
ing to the companies, will involve large expenditures. The
money for the accomplishment of such great results must be
derived from capitalists abroad. In the present feverish state
of the financial world, money cannot be obtained except upon
the most ample and undoubted security. The capitalist will
not risk his money in loans to companies, whose stability can
be questioned, or whose rights can be impaired according to
the dictates of political caprice. And, although we have
abiding confidence in the integrity of the people of New Jer¬
sey, and apprehend no danger of any infraction of-our vested
rights at any time from their deliberate action, still, we have
14
no anxiety to cling to them with pertinacity, much less to hold
them against the deliberate, well considered wishes of the
people.
If, therefore, it be the desire of the state to resume the trust
reposed in the joint companies, they are entirely willing to re¬
linquish their corporate property and privileges, upon terms
which cannot but be considered just and liberal. With these
feelings and sentiments, and in view of the great expenditures
for the improvements referred to above ; and in view of the
necessity which will otherwise compel us to solicit additional le¬
gislation to enable us to borrow the money for that purpose ; and
in consideration of the dissatisfaction (whether feigned or real)
avowed regarding the continuance oí the corporate privileges
of these companies, this is deemed a suitable time for tendering
to the state all the works of the joint companies :
Wherefore, a tender is hereby made to the state of New
Jersey, of all the works of the Delaware and Raritan Canal
Company and of the Camden and Amboy Railroad Company,
with the franchises and appurtenances thereunto belonging.—
They will sell to the state the shares of the capital stock of the
companies, at the average rate at which the last thousand
shares have been sold for in the market. Thatpiice which the
public is willing to pay for them the state can safely afford to
give. They can never be worth less than at the present time;
on the contrary, each succeeding year will enhance their value.
We desire, however, that it should be distinctly understood
that this tender is made from no fears of the infringement of the
rights of the companies by the state. In the honor and good
faith of New Jersey we always have reposed and do now re¬
pose, perfect confidence, uninfluenced by the assaults of igno¬
rance and envy, the noisv declamations of demagogues, or the
insidious intrigues and hired defamation of parties abroad.—
Still, there may be some grounds for the opinion that respect¬
able portions of our fellow citizens desire to terminate the con¬
nection of the state with the companies. It is for the legisla¬
ture to determine now whether such a desire exists and should
be gratified by the acceptance of the offer hereby made. That
15
connection may now be dissolved amicably and honorably, by
mutual consent. We are fully sensible of the great responsi¬
bilities involved in the management and administration of the
affairs of the joint companies, and we are aware that the
opinion is growing in force that such works as those of the
companies can be more profitably and economically managed
by corporations than by the government, whether state or na¬
tional. Be this as it may, the state has now at her com¬
mand an opportunity of making the experiment of state man¬
agement of public works, under the most favorable circum¬
stances.
If, h owever, the legislature shall decline to accept the offer
which is thus made—if she shall thus approve the continuation
of the subsisting relations between the joint companies and the
state—if she shall thus manifest her confidence in them, and
thus renew her sanction of that system of internal improvement
originally preferred and adopted, the companies will acquiesce
in such an expression of the public will, and cheerfully continue
in the discharge of those functions which the established policy
of New Jersey devolves upon them. In such case, it is confi¬
dently believed (if the necessity for the improvements which have
been suggested be approved by the legislature) there will be no
hesitation in conceding to the joint companies that additional
legislation which will be indispensable to enable them to pro¬
cure the means with which to complete the great work of in¬
ternal improvement in New Jersey.
In the foregoing remarks, allusion has been made to the dif¬
ficulty at this period of procuring loans from capitalists abroad,
except on the most unexceptionable security. Allusion has
also been made to the fact that the rights and privileges of the
joint companies have been drawn in question by ambitious de¬
magogues, and we have said these assaults have not sliakenour
confidence in the good faith of the state, or the integrity of the
people. But although they have not alarmed the companies,
it must be obvious that they are calculated to produce the
most injurious impiessions on others, who have not the same
knowledge of the people of New Jersey which we possess.—
16
These assaults on the companies no human power can prevent
—they are perpetrated in the exercise of that freedom of dis¬
cussion which is the inalienable right of freemen. The abuse
of that right will never extort from us a desire to abridge or
violate it. In the upright discharge of their duties, and the
lawful enjoyment of their franchises, the joint companies shrink
from no scrutiny, fear no assaults, and ask for no protection be¬
yond that which the legislative power of New Jersey, approved
by the people for twenty years, has conferred upon them.
But when we go into the market and ask the capitalists to
confide their millions to our custody, it cannot he doubted
that the assaults to which we have referred will he found to
have made their natural impression on them. They may well
hesitate to trust those whose very existence is threatened hy
factious clamor. They will, with reason, require some re¬
newal of the state pledge of protection—some fresh evidence
of the confidence of the state government in the present system
of improvement, before they will consent to furnish the means
for the large expenditures contemplated in this communication.
That pledge may he given, and that evidence furnished, hy
enacting that the duration of the charter of the Camden and
Amhoy Railroad Company, shall equal that of the Delaware
and Raritan Canal Company, that both may become the pro¬
perty of the state at the same time. It would doubtless, on
many accounts, he preferable if the right of the state to pur¬
chase the works of both companies had been limited to the
same period. The wisdom and policy of the state's ever pur¬
chasing the works of one company without the purchase of
the other also at the same time, may well he questioned. It
is doubtful whether the people would he ever willing to en¬
counter the risk involved in such an experiment. In charge
of separate and distinct parties the canal and railroads would
become formidable rivals in business. Whether in the hands
of companies or of the state, the union of these great works
will he found necessary to obviate that ruinous competition
which would ultimately prove destructive to both. This was
well understood at the time of their original consolidation, and
17
it is now more obvious than ever. If there be force and pro¬
priety in the views here presented, respecting the policy and
advantages of the state's right to purchase the works of both
companies being exercised at the same time, then the measure
of extension is of itself, considered independently, both just
and expedient, and of the first importance to all who desire
that the state should at any time become the purchaser of
these works. The state will never take one without the
other. It will also give the state more time to adopt measures
for the eventual purchase of both works.
The extension of the railroad companies' charter to the same
duration as that of the canal companies' charter, so that the
state may have the power to lake both works at the same
time, is a measure of preparation essential to the exercise of
that power. It may be safely predicted that without that pre¬
cautionary preparation the state will never posse.ss the practi¬
cal ability to become the proprietor of the works of either
company, and their charléis will become perpetual, and the
contemplated improvements in West Jersey be indefinitely
postponed.
If, therefore, it be desirable that the state should at any time
acquire the ownership of these works, and that the improve¬
ments in the south western counties should be speedily made,
these objects can now be secured without the creation of any
state debt, or the imposition of any burthen on the people,
and without the adoption of any new principle, or conferring
any additional power or privileges on the companies, but
merely by the extension of the charters of one of them twenty
years.
When it is remembered that these charters were granted
for fifty and thirty years, to secure the construction of the
canal and railroad through the centre of the state, it is not
deemed an unreasonable demand on the part of the people of
West Jersey, that the legislature should extend one of them
for twenty years, to secure the immediate construction of all
the railroads desired by the people of the south western coun¬
ties, especially when it will be perceived by reference to note
2
18
second,* appended to this letter, that both of these desirable
objects can be obtained by reserving a portion only of the an¬
nual accruing revenues from the joint companies, for the pur¬
pose of creating a fund for the ultimate redemption of these
works.
We ought perhaps to be satisfied with these suggestions ; but
feeling as deep an interest for the real prosperity and welfare
of our native state, as other citizens, we may be excused for
presenting in a more practicable form, the means by which these
great objects may be accomplished, namely, the eventual ac¬
quisition of these works by the state, and the immediate con¬
struction of the railroad improvements so earnestly desired by
West Jersey.
The amount of revenue derived by the state from the joint
companies for the last year was $150,000. We are informed
that the sum of ninety thousand dollars is quite sufficient to
defray the annual expense of bur state government. If, there¬
fore, $75,000 of the annual accruing revenue be appropriated
as a fund for the redemption of these works, and be invested
yearly at six per cent., then, at the expiration of thirty-six
years, it will produce an aggregate sum about equal to the
entire cost of both works. Should this sum of $75,000 be
taken from the present revenues of the state, it would only be
necessary for the support of the state government, that fifteen
thousand dollars shall be drawn from other sources.
In this view, every essential interest of the state seems to be
provided for except that of education. Now it is suggested
that the annual increase! of the revenue supplied by the joint
companies may be pledged to that important object. This
would furnish an ample fund for that purpose, if the past in¬
crease of the revenues is any criterion by which to estimate
their future improvement. The revenue derived by the state
from the joint companies was, in 1843, but $48,000; in 1853,
it was $150,000, an increase of over 200 per cent. In 1848
those revenues were but $78,000 ; so that in five years they
, have increased nearly 100 per cent. There is every rea son
# See Note 2.
19
to expect that during the next five years they will increase in
a still greater ratio. But suppose that they augment in no
greater ratio than during the period of the last five years,
then in 1859 the revenue which can be devoted to the school
fund will not be less than $150,000 annually.
But when viewed in connection with the improvements
demanded by the public—the vast expenditures which they
will require—the precarious state of the money market, and
the indispensable necessity of furnishing, in such exigency, to
capitalists some striking evidence of the stability of the joint
companies, and some decided assurance that the system of inter¬
nal improvement adopted by New Jersey will not be departed
from, it would seem highly expedient that such a law should
be passed. Unless it were necessary, it certainly would not be
suggested ; and it is suggested only as the means for the
accomplishment of benefits and facilities demanded by the
people. We will not deny- that such an extension would be
desirable to the companies. But it is neither essential to their
interests, nor would it have been now recommended, except in
contemplation of the improvements required. Our railroads, in
their present condition, are adequate for purposes of revenue,
and the existing business. The income of the companies would
not, probably, be augmented before the termination of the
existing contract with the state, if ever, by the suggested
improvements and new works, in proportion to their cost.
The accommodation to the public, therefore, and the extension
of the system of internal improvements to the southwestern
counties, constitute the chief induceir^uits to incur the expense
which they will require. It would therefore be just and right,
as a measure of compensation, that such additional legislation
should be granted, were it not just and expedient for the other
reasons which have been given. To suppose that the joint
companies would hazard such immense expenditures, without
some corresponding compensation, would be to suppose them
animated by such a spirit of universal benevolence as would
hardly be consistent with the interests of their stockholders, or
a proper estimate of |heir own duties.
20
The whole subject is now submitted to the wisdom of the le¬
gislature, with the conviction that they will give it that delibe¬
rate consideration which its importance claims, and dispose of it
as a statesmanlike, comprehensive view of the interests of the
people may justify. The state has now the option to obtain the
proprietorship of all the works of the companies, upon equitable,
liberal terms. Under her control the further improvement of
the state may be prosecuted, perhaps without exciting that
animosity which has been manifested with regard to the well
intended efforts in that cause, of the joint companies. Should
the legislature, however, decline to purchase the stock of the
joint companies, but grant the proposed extension, then the
companies, strengthened and fortified by the renewed confidence
of the legislature, will make those improvements and public
works which are called for, upon a scale commensurate with
the expectations of the public, and the demands of the future.
With great consideration,
I have the honor to be,
faithfully, your ob't serv't,
R. F. STOCKTON.
21
NOTE I.
Statement showing the fare per mile on all of the Railroads in
this country, and the principal Railroads in Great Britain,
{American roads taken from Railway Guide
for January, 1854 ; English roads taken from Bradshaw's
Railway Guide for May, 1849,) compared with the fares of
the Camden and Amboy Railroad and its Branches.
The 7 Eastern States having 80 roads, 3720 miles. Through fare, 2.63 per mile.
5 Middle •' 50 " 4339 •' 3.00
6 Southern 27 " 2260 " " •' 3 62
6 Western " 34 3024 '• 2.79
24 States. 191 " 13,349 4)12.04
Average rate per mile, 3.01
PRINCIPAL RAILROADS IN GREAT BRITAIN.
Eastern Counties Railway. London to Cambridge, ó7¿ miles.
South-Eastern " Dover, 88 '•
South-Western •• Southampton SO •'
Southampton to Dorchester 61 * '
a to " " "
Great-"Western London to Exeter, 193^ "
North-Westei-n
London to Edinburgh.
8873 Miles.
PIrst Class, 5 cts. per mile.
'' Ô.V
H
ôi
4|
5^
il
4i
12)60 6-8
Average rate per mile, 5 00
CAMDEN AND AMBOY RAILROAD AND ITS BRANCHES.
BKAJXCH ROAD VIA. JERSEY CITY, THROUGH FARBS.
Leaves New York, 7 A.M.
(( 9 «;
11
12 M.
" 4 P.M.
5^^ «
Philadolphia, li A. M.
H
88 miles.
92 "
92 "
92
92 "
92 "
88 "
88
92
SS '•
92
Fare, $2.75.
•' 3.00
3.00
" 2.00
'• 2.75
'• 3.00
= ' 3.00
2.75
3.00
•' 2.75
3.00
Through fares via Jersey City per mile,
Rate per mile, 3.12
•' " 3.26
" 3.12
" 2.17
3.12
•• 3.26
" " 3,40
" 3.12
" " 3.26
" «• 3.12
" 3.26
■ - - - 11)34.31-3.11
22
CAMDBN AND AMBOY.
Leaves Philadelphia and New York, 7 A. M. 90 Miles. Fare $2.00. Rate per mile 2.22
" '• '• 2 P.M. 90 3.00 " " 3.33
2)5.55-2.77i
FKBEHOLD BRANCH.
Freehold to New York, 55 Miles. Fare 0.50. Rate per mile, 09
BBLVIDBRB DBL.VWARB RAILROAD.
Treoton to Easton, 50 Miles. Fare $1.00 Rate per mile, 2.00
4)5.97^
Through Fares of As.sociated Companies per mile, 199
IVAY FARES—BRANCH ROAD.
Philadelphia to Trenton, 30 Miles. Fare .$0.50 Rate per mile, 1.66
Trenton to Princeton, 10 " •• 25 «• 2.50
Princeton to New Brun-swick. 17i '• " 40 •• •' 2.33
3)6.49-2.16
CAMDEN AND AMBOY RAILROAD.
Philadelphia to Burlington, 19 miles. Face $0.25. Rate per mile, 1.31
Burlington to Bordentown, 9
Bordentown to Hightstown, 14
Hightstown to New York, 51
12 1.33
35 '• - 2.50
1.25 2.45
4)7.59—1.90
BELVIDERE DELAWARE RAILROAD.
Trenton to Lambertville, 10Mile.s. Fare $0.25. Rate per mile, 1.57
FREEHOLD RAILROAD.
Freehold to Jamesburg, 11 Miles. Fai'e $0.25. Rate per mile, 2.17
4)7.80
Way Fares of Associated Companies, 195
Through Fares of Associated Companies, 1.99
2)3.94
Average of Way and Through Fares, 1.97
SÜ1LAIÄRY.
American Roads—Through Fares per mile, 3.01. Way Fare, per mile, 3.13
English " " 5.06. " "
Camden & Amboy Associated Co., through fares per mile, 1.99. " ' ' 1.95
Note.—The Railroads in New Jersey are not included in the above statement. The average
Through Fares on them is 2.34 per mile, and Way Fares 2.56. The Second Class and Emigrant
Lines also of the Associated Companies are not included. Emigrant Lines are 1.36 per mile,
and the Seconl Class 2.17 per mile.
NOTE II.
$75,000 annually funded at compound interest at six per cent, per annum, will produce in
thirty-six years the sum of $9,470,310 24.