NOTE

The campaign before the electors of the State on the Canal Referendum measure of 1903, known as chapter 147 of the Laws of 1903, was one of the most spirited ever witnessed and was participated in by many of the most prominent citizens of the commonwealth. Governor Benjamin B. Odell, Jr., who had given the measure the weight of his official approval on April 7, 1903, spoke in favor of its approval at country fairs during the fall of that year. His speeches did much to allay opposition in rural communities, which quite generally were opposed to the expenditure of so large a sum for canal improvement. The Honorable George Clinton of Buffalo, who had a large part in formulating the Referendum measure and in advocating it before legislative committees, was untiring in its advocacy in various parts of the State. His long and intelligent devotion to canal affairs had won for him the admiration of the commercial interests of the State. No speaker was more sought after and no one rendered greater service in that eventful campaign.

Senator Henry W. Hill of Buffalo, who took a prominent part in the long fight in the Senate in the final passage of the bill through that body, was frequently called upon to speak in its behalf. He addressed audiences in the Chamber of Commerce in Buffalo on May 8th; at Lockport on July 11th; at Lily Dale on August 22d; at Lyons on September 24th; at the Historical Building, Buffalo, before the Buffalo Historical Society, on October 4th; at Troy on October 5th; at Delmonico's in New York City on October 6th; at Dunkirk, October 14th; at Cohoes, October 16th; at Brooklyn, October 25th; at Lockport, October 29th; at Binghamton, October 30th; at Buffalo again, October 31st, November 1st, and November 2, 1903; and at still other places in the State during the long campaign. His remarks were naturally varied according to the locality, and adapted to the audiences he was addressing. The main discussion, however, of a historical character, was substantially as printed in the following pages.

468

SPEECH ON

THE CANAL IMPROVEMENT

REFERENDUM MEASURE

BEING CHAPTER 147 OF THE LAWS OF 1903

It is auspicious for commerce that its claims are to be presented and its far-reaching interests considered in this forum. The discussion of such matters in popular assemblies cannot fail to awaken public interest in their proper solution.

The propriety of this discussion is still more apparent in view of the fact that at the next general election there is to be submitted to the electors of the State a most momentous commercial question.

The Constitution of this State ordains that, except in cases of casual deficits, or to repel invasions, "no debts shall be hereafter contracted by or in behalf of this State, unless such debt shall be authorized by a law, for some single work or object, to be distinctly specified therein; and such law shall impose and provide for the collection of a direct annual tax to pay, and sufficient to pay, the interest on such debt as it falls due, and also to pay and discharge the principal of such debt within eighteen years from the time of the contracting thereof. No such law shall take effect until it shall, at a general election, have been submitted to the people, and have received a majority of all the votes cast for and against it at such election."

In compliance with this constitutional mandate, the Legislature at its last session passed the Davis-Bostwick Refer

endum Canal Bill, authorizing the issue of one hundred and one million dollars of bonds, the proceeds of which are to be used for the construction of a thousand ton barge canal from the Great Lakes on the west and Champlain on the north to the Hudson, provided such law receive a majority of the votes cast for and against it at the general election in November. The people in their sovereign capacity have thus reserved unto themselves the ultimate disposition of all propositions involving the creation of a debt in excess of one million dollars for any public improvement and the wisdom of this referendum constitutional provision is not open to question. This imposes, however, on the electors of the State the responsibility of an intelligent and proper solution of the matters thus submitted to them. Accordingly public discussion and individual investigation are both essential to a proper solution of such important questions of state as are thus submitted under the Constitution to the people for their decision. This is true of nearly all referendum propositions, but it is especially so of the pending referendum measure, which is regarded as of the utmost importance to the commercial development of the State.

The question at issue is a large one and merits careful investigation and wise decision. If it were a mere academic proposition to be decided either way without materially affecting the well-being of the State, little harm would result from the cursory or flippant manner in which it has been discussed in some parts of the State. But great public questions are not to be treated thus lightly. It may be sport for the press in some sections to rail at "the Clinton ditch," but it must be remembered there have been those who have declared that New York's internal waterways "have contributed more to the advancement of commerce and civilization than any similar work recorded in history."

The history of New York has been a history of unparalleled progress in commerce, manufactures and the development of the liberal arts. Primarily its existence and farreaching commerce has contributed much to its phenomenal

1. Sweet, Doc. Sketch N. Y. Canals.

advancement in all that makes up a prosperous people and a progressive civilization. Its founders were far-seeing, broad-gauged and liberal-minded statesmen. They believed that facility and economy in transportation of agricultural, mineral and manufactured products were of prime importance in the development of a State. They realized that a saving in freight rates was a gain both to the producer and the consumer and made it possible for industries to thrive and flourish wherever those conditions existed. The business interests of the world are conducted on close margins and with small profits. A small saving in transportation charges makes some enterprises successful, where others, not within the range of the competitive influences producing low rates, are failures.

The industrial development of this State, which leads all other states in the volume of her manufactures, is largely due to low freight rates. Other states have their coal, coke, iron and other natural products, but New York for threequarters of a century has had the most extensive system of internal waterways of any State in the Union, over which several millions of tons of raw material and manufactured products have moved annually, at freight rates below those of any other State.

All writers of repute on political science recognize the principle, that the production and distribution of wealth largely depend on the facility and cheapness of transportation. As the cost of transportation decreases, both production and consumption increase, and man's natural and acquired wants are more abundantly supplied. New industries spring up wherever the transportation problem is minimized by competitive effects of water communication with the marts of trade. It is a maxim of political ethics that trade enriches nations. So does it enrich a great State like New York, which has such natural resources and such a variety of industrial and commercial interests. Its commerce is almost as extensive as that of some independent governments and it is as greatly concerned in the transportation problem as are they. Economy in the transportation of agricultural products to cities, and of merchandise to the

country, enriches both urban and rural communities. Insofar as the cost of transportation may be eliminated, that far at least may be increased the purchasing power of the consumer. When it cost $40, $60, $80 and $100, as is said was the case before the completion of the Erie canal, to transport a ton of merchandise from New York City to western New York, and 30, 40, 50 and 60 cents to transport a bushel of wheat from the Genesee valley to New York City, much of the selling price of such merchandise and wheat was made up of freights, and the demand therefor and supply thereof were kept within the smallest possible compass. Such high rates of transportation were serious obstructions to trade and to an interchange of commodities. That has been one of the most serious hindrances to the development of some of the New England states. The early development of our artificial waterways did away with such obstructions and hindrances in this State. In time its inland and foreign commerce surpassed those of every other State, but this cannot long continue, for there has been in late years a marked decline in the relative volume of the commerce of the port of New York, when compared with that of Montreal, Boston, Philadelphia, Baltimore and New Orleans.

In 1880 New York's tonnage exceeded that of these five other Atlantic ports, but in 1898, they had increased their foreign tonnage by 2,500,000 tons and have outstripped New York. During this time, New York has been gradually losing both her export and import trade, while other Atlantic ports have been steadily increasing theirs. Mr. Gustav H. Schwab says that "the average decline per annum in the value of New York's foreign commerce from 1880 to 1898 was $16,657,416."

The grain exported from the port of New York in 1902 was 30,000,000 bushels less than in 1893. The loss of commerce to the port of New York is believed to be principally due to the decline in canal tonnage, and the differential railroad freight rates established against New York by trunk railway managers in favor of other Atlantic ports, such as Philadelphia, Baltimore, Norfolk, Newport News and Bos