REPORT COMMISSIONERS AProISTF.D TO INVESTIGATE CHARGES MADE AGAINST THE DIRECTORS OF THE DELAWARE AND RARITAN CANAL, AND CAMDEN AND AMBOY RAILROAD AND TRANSPORTATION COMPANIES. Made to the legislature, Februnvy 8,1831). TRENTON: RRINTED by PHILDIPS & BOSWEIL.- 1 8 50 . REPORT. To the Senate and General Assembly of the Stale of New Jersey. The undersigned, commissioners appointed by joint reso¬ lution of the legislature, approved February 13th, 1849, to investigate certain charges made against the directors of the ■ Delaware and Raritan Canal, and Camden and Amboy Rail¬ road and Transportation Companies, respectfully submit the following REPORT of their proceedings under the said reso¬ lution, of which the following is a copy, with the preamble thereunto annexed: Whereas it appears, by the message of His Excellency the Governor, and by petitions laid before the legislature, that certain charges have lately been made and promulgated touching the proceedings of the Camden and Amboy Railroad, and the Delaware and Raritan Canal Companies, charging the said companies and their officers with certain fraudulent practices, whereby, if true, the state has been defrauded of large sums of money, payable under the charter of said com¬ panies, and the supplements thereto; and luhereas His Ex¬ cellency the Governor has thought fit, in said message, to recommend, and the petitioners have prayed that an investi¬ gation of said charges be made under the authority and di¬ rection of this legislature; and whereas a feeling of dissatis¬ faction is alleged to exist in reference to the general manage¬ ment of the affairs of said companies; and whereas it ap¬ pears to the legislature that it is due, as well to the state as to the said companies and their officers, that the said in¬ vestigation should be made, to the end that, if well founded, 4 the just rights of the state may be secured and protected, and if untrue, that the parties implicated may be acquitted of all unjust imputation—therefore, Be it resolved, by the Senate and General vissembly of the State of New Jersey, That Aaron Robertson, of the county of Morris, James S. Hulme, of the county of Bur¬ lington, and Alexander Wurts, of the county of Hunter¬ don, be, and they are hereby appointed commissioners, with full power and authority to investigate and inquire into the charges before mentioned, and particularly referred to and set forth in the message of the governor, and the documents accompanying the same, and in the petitions aforesaid; and also, so far into all the business and operations of the said companies, and the contracts and agreements made by them with other persons, incorporations, and associations, from the date of their charters to the present time, as they shall deem necessary to secure the mterests of the state; and that for this purpose they have full power and authority to send for persons and papers, and to swear and examine witnesses. And be it further resolved, That said commissioners be requested to proceed with as much speed, as may be consist¬ ent with a careful and thorough examination of the matters referred to, so that, if practicable, their report may be made to the present session, and if not, that they make their re¬ port to the next session of the legislature; and that as soon as the said commissioners shall have completed their report, they file a copy of the same in the office of the secretary of state. And be it further resolved. That as soon as the said com¬ missioners shall have investigated the charges referred to in the message of the governor, and the documents accom¬ panying the same, it shall be their duty to report the result of such investigation, and file the same, as before directed; and that they then proceed to make such further investiga¬ tion into the business and operations of the said companies, as they may deem necessary in order to secure the interests of the state, and to make report thereon, and file the same, as before directed, with all convenient despatch.” On llie ninth day of February last, diaries G. McChes- ney, esq., secretary of state, forwarded to each of the sub¬ scribers a copy of the foregoing resolution; and, in his letter of communication, suggested a preliminary meeting of the commissioners at Trenton, on the fourteenth day of the same month of February. On the day specified, two of the commissioners attended at Trenton, when the message of the governor to the legis¬ lature, and the several documents named in it, in connection with the said charges, together with the said petitions to the legislature on the same subject, were laid before them by the secretary of state. They also received a letter from the secretary of the joint board of directors of the two companies, requesting inform¬ ation of the time and place, when and where the investiga¬ tion would be commenced, stating also, that he was directed to notify the commissioners, that the board would meet them at any time or place they may appoint, and would aflbrd every proper facility in the investigation under the joint re¬ solution of the legislature. After conferring together, and spending some time in con¬ sidering the necessary preliminary arrangements, it was sug¬ gested to the commissioners, by some members of the judi¬ ciary committee, that the legislature designed taking some further action in reference to the investigation. They then adjourned to the 22d of the same month of February. They met again at Trenton, on the day last mentioned, and found the legislature still occupied with a second resolution, rela¬ tive to the commission. The commissioners remained at Trenton until the next day, and then adjourned until the 13th of March last, for the purpose of then commencing the investigation. On the day last named, the commissioners accordingly met at the “ American Hotel,” in Trenton, having previously, by letter, advised John R. Thomson, esq., secretary of the joint board of directors of the Delaware and Raritan Canal, and Camden and Amboy Railroad and Transportation-Compa¬ nies, of their intention so to do. The board of commissioners 6 was then, in part, formally organized, by the appointment of Aaron Robertson as chairman. In the course of the day, a committee of the joint board of directors of the companies waited upon the conmiissiou- ers, and informed them, that the joint board were then in session at the “ Trenton House,” in the city of Trenton. That they had been appointed a committee of the board, with instructions to wait upon the commissioners, and inform them, that the board had met for the purpose of showing all due respect to the authority of the state; and also to express to them the gratification of the board that the investigation was to take place, and their desire that it should be prompt¬ ly undertaken and diligently prosecuted; and to tender to the commissioners, on the part of the board, every facility in their power to afford, in aid of the investigation. They also , proposed, and invited an informal interview and conference between the commissioners and the board, with respect to the time, place, and manner of conducting the investigation.— The commissioners acceded to the suggestion. In the afternoon of the same day, the commissioners had an interview and free conference with the board of directors, respecting the investigation, and the time, place, and mode of conducting it. The joint board of directors, by their president, John Pot¬ ter, esq., (since deceased) tendered to the commissioners the use of all their books, papers, and vouchers, and assured them that the officers, clerks, and agents of the companies would attend at any time and place to aid the investigation by ex¬ planations, or to answer any interrogatories, under oath or otherwise, which might be proposed to them. The directors also proffered themselves ready and willing to produce their books and papers, at any place at which the commissioners shoidd determine to hold their meetings.—At the same time, they tendered to them the free use and entire control of a commodious room, attached to their principal office at Bordentown, as a convenient and accessible place in which to conduct the investigation; and suggested the addi¬ tional reason for so doing, that the principal part of the books and papers were kept in the fire-proof at Bordentown, and would therefore, at all times, be promptly at the command of the commissioners; and the incouvenience and risk, as well as tlie delay attending their removal to some other place, would bo avoided. The commissioners assured the directors that they wished to conduct the investigation at such place or places, and in such mode, as to cause the least inconvenience to the joint companies, consistent with a faithful discharge of the duty imposed upon them. After further conference and interchange of views, and without determining the questions considered, as to the place or mode of conducting the investigation, it was determined that the commissioners would meet the next day at Borden- town, for the purpose of taking a general view of the books and affairs of the companies, previous to deciding upon any definite plan of proceeding. The commissioners accordingly met the next day at Bor- dentown, and were occupied, during the day, in examining some of the books and records of the companies, and con¬ ferring with several of their officers and clerks, as to the ge¬ neral manner of condueting the business and keeping the accounts. The commissioners then became satisfied that the investigation, so far as it depended upon, and required an examination of the books and papers of the companies, could be conducted at Bordentown with more despatch, and with less trouble and inconvenience, both to themselves and the companies, than at any other place. One important consideration was, that by accepting the use of the room placed at their disposal by the board, they would be relieved from'the care and custody of the books and pa¬ pers ; which would be imposed upon them, by requiring their production at some other place less secure, while at the same time the companies would be saved much unnecessary risk, trouble, and expense. The commissioners thereupon determined that, for the time being, they would hold their meetings, and prosecute the in¬ vestigation at Bordentown; and so informed a committee of the directors, who were in attendance. The commissioners then, after due consideration of the na- ture and character of the duty imposed upon tliem, came to the conclusion that a proper discharge of that duty required the services of a clerk or secretary. Charles M. Hakker, of Mount Holly, was thereupon unanimously appointed se¬ cretary of the board of commissioners. They further deter¬ mined to proceed at once with the investigation, and to pro¬ secute it with as much despatch as circumstances woidd per¬ mit, and so advised the companies. Mr. Harker appeared the next day, accepted the appointment, and innnediately entered upon the discharge of its duties. The investigation was then commenced; and, with the exception of a recess in midsummer, and during the height of the cholera epi¬ demic, it has been diligently prosecuted, almost without in¬ terruption, from that time to the present. PRELIMINARV REMARKS. Before proceeding with the details of the investigation, it may he proper to remark, that the commissioners entered upon it with a due appreciation of its magnitude and import¬ ance. And although satisfied, when they accepted the hon¬ ourable trust confided to them by the legislature, that its due execution would require considerable time and labour, yet, could they in advance have truly estimated the actual amount of time and labour that experience proved to be necessary, they would, perhaps, have felt constrained to decline the trust. Having entered, however, upon the work, their only solicitude was to execute it with truth and fidelity. They were sensible that the high source from which they derived their powers, was calculated to invest the report they should make (however imperfect and defective) with an importance and a practical operation, either for good or for evil, entirely disproportioned to its intrinsic merits. They did not lose sight of the fact, that millions of dollars had been invested and expended in the construction of the works of the joint companies. This large amount of money, they recollected, was represented by stock certificates, par¬ taking of the sensitive nature of all such securities, and 9 which wight easily he affected in value by a mistake upon our part, to the serious, and perhaps irreparable injury of many, whose all might be invested in them. Again, they were sensible that much excitement and feel¬ ing existed in the community, in reference to the charges brought against the directors of the joint companies, and the administration of their affairs. Those charges involve the revenues of the state, as well as the integrity of private character, and are therefore well calculated to produce a deep and general interest. The legislature of our state, with generous confidence, had encouraged and aided the pro¬ jectors of the canal and railroad with liberal charters, and by the grant of extraordinary privileges, well calculated to excite jealousy and discontent upon the least suspicion of • abuse, and certainly calling for the return of the strictest good faith on the part of the favoured grantees. The state, how¬ ever, did not bestow these high privileges, including the right of way over a portion at least of her soil, entirely without consideration. Her pecuniary interests, in connection with the works of the joint companies, are large and valuable, yielding her a revenue, for several years past, more than sufticient to meet all the ordinary state expenses. And with a confidence, which should not be abused, she has left in the hands of the corporators the entire control and management of the works, including therein her own great pecuniary interests. Ill a pecuniary point of view, alone, the people of Now Jersey are deeply interested in the faithful administration of the affairs of the joint companies. And the honour and dig¬ nity of the state, as a copartner in the concern, may justly bo considered as still more deeply involved in the same is¬ sue. It is therefore the right of the state, as welt as her duty to herself and to the whole community, to hold these companies to a strict and rigid accountability. Various considerations, of the above character, were pre¬ sented at once to the minds of the cominissioncvs. and they entered upon the investigation with an anxious solicitude to avoid error, commensurate with the gravity of the charges. and the abiding importance of the great questions involved in them. Truth, alone, was our object, in reference to the se¬ veral matters submitted to us; and when satisfied that we had reached it, our duty was, and still is, rvithout disguise to report it, irrespective of persons or consequences. In addition, it is proper to add, that the commissioners were somewhat embarrassed by the very general and com¬ prehensive terms of the resolutions under which they Avere to act. Besides the specific charges, above referred to, they were required by the resolutions, so far to investigate and inquire into all the business associations, contracts, and agreements of the joint companies, from the date of their charters, as they may deem necessary to secure the interests of the state. A literal compliance with this requisition Avould consume years of labour. The state, as a stockholder, independent of lier great interests as the recipient of transit duties, is interested in every act and transaction of the companies, from the com¬ mencement of their operations. It is true this general branch of the investigation Avas limited to the discretion of the com¬ missioners. But the difiiculty Avas, so to exercise that discre¬ tion, as not to omit any particular matter, Avhich might be considered material by the legislature. If, in this branch of the inquiry, the report shall be short of the expectations of the legislature or of the public, the commissioners must rely, by way of justification, upon the very general and indefinite in¬ struction under Avhich they acted in this particular. And again, the unexpected length of time and amount of labour necessarily consumed in the investigation of the defi¬ nite and specific matters, compelled the commissioners to forego an inquiry into some other subjects of public interest, in coimection Avith the companies, Avhich, under other circum¬ stances, they Avould have been gratified to include in their report. They Avill instance the costs of construction of the canal and railroad, as one subject of great interest to the people of the state, in connection Avith the reserved right of redemp¬ tion. At the commencement of the investigation, the comrais- 11 sioners expected, and indeed had determined to look into this very important branch of the disbursements of the compa¬ nies, and to report fully upon it, in connection with the other matters submitted to them ; not only on account of the gene¬ ral interest of the question, but because they understood that several of the members of the last legislature expected and desired that they should do so. They regret that want of time compelled them to abandon this determination. At the same time, we consider it exceedingly important that the le¬ gislature should be informed, from a reliable and authorized source, of the actual costs of construction of the canal and railroad. By reference to the terms of the resolutions, under which they acted, it will be seen that the commissioners were re¬ quired, in the first place, to investigate and report upon the specific charges preferred against the oificers of the joint com- ])anies; and after that was done, then to proceed to malce such further investigation into the business and operations of the said company, as they may deem necessary, in order to secure the interests of the state ; and then report the result of such further investigation. It was the wish and intention of the commissioners to comply strictly with their instructions; and the plan or out- 1 ine of proceedings, which they marked out for themselves, contemplated two separate reports, as directed by the reso¬ lutions. Accordingly, the first matters taken up for investigation were the specific charges, with the view of ascertaining and reporting, as speedily as might be, the facts in reference to them. The commissioners soon discovered, however, that it would be impossible to present an early report, at all satis¬ factory to themselves, of the facts bearing upon the charges. As the investigation progressed, the field of necessary exam¬ ination appeared to enlarge. This will surprise no one who looks upon the very extensive and varied business transac¬ tions of two great institutions, with all whose operations, for years past, the charges in question were more or less inti¬ mately connected. And again, it very soon became manifest 12 that the specific charges were so intimately connected and blended with the principal contracts and general business op¬ erations of the companies, that it would be impossible to dis¬ connect them in the investigation, and that separate reports upon them would be a useless ceremony. Under these cir¬ cumstances, the commissioners concluded to embrace the proceedings of the whole investigation in one report. They trust that the legislature, for the reasons assigned, will ex¬ cuse their departure from the strict letter of instructions. It has already been stated that, at the first meeting of the commissioners at Trenton, the message of the governor, and the documents named in it, having reference to the compa¬ nies, with the petitions to the legislature, were laid before them. And, by the terms of the resolutions, the commis¬ sioners are referred to the said message, documents, and pe¬ titions, to ascertain the particular and specific charges affect¬ ing the companies and their officers, which they arc directed to investigate. The following extracts from the message, is all that it con¬ tains bearing upon the question, viz: “With this, is trans¬ mitted to you a communication, recently received from the secretary of the Delaware and Raritan Canal, and Camden and Amboy Railroad and Transportation Companies, togeth¬ er with a pamphlet containing grave charges, preferred by “ A citizen of Burlington,” against the company and its of¬ ficers, and a copy of the report of a committee, appointed by the board of directors of the joint companies to investigate those charges. By this communication, the board of direc¬ tors proffer themselves ready and desirous to meet a reinves- tigation of the charges, before any tribunal that the executive or the legislature may see fit to designate. These charge.s involve the crime of perjury, false entries, and false reports, and embezzlement of the funds of the state and of the stock¬ holders. They are made against persons who have hereto¬ fore sustained the highest character for integrity, and en¬ joyed the entire confidence of the pirblic. The state has a deep interest in a prompt, full, and impartial scrutiny of the conduct of the persons accused, and in the truth or falsehood of, the accusations; and, for this purpose, I recommend the 13 immediate appointment of a joint committee of yonr two houses, with power to send for persons and papers, tliat speedy and exact justice may be done in the matter.” The communication from the’ secretary of the joint com¬ panies, is sufficiently described in the above extract from the message, and need not therefore he given at length. The report of James G. King, William Pennington, and Charles Parker, esquires, the commissioners appointed by the joint hoard to investigate the charges referred to in the message of the governor, is one of the documents placed in the hands of the subscribers. All due respect was paid to that report by the undersigned commissioners. The petitions to the legislature, referred to in the resolu¬ tions appointing the commissioners,, and placed in their hands, as before mentioned, do not contain or prefer any ori¬ ginal specific charges against the companies, but refer to, and repeat the charges preferred by a “citizen of Burlington,” and pray the legislature to cause them to be investigated. The pamphlet, therefore, by a “citizen of Burlington,” tin? only remaining document placed in the hands of the comini.s- sioners, was necessarily referred to by them, to ascertain tin? particular and specific charges intended to be investigated. This pamphlet is entitled, “A review of an address of the joint board of directors of the Delaware and Raritan Canal, and Camden and Amboy Railroad Companies, to the pi^ojile of New Jersey, by a citizen of Burlington.” It purports to have been printed in Philadelphia, in the year 1848; and is composed of a series of twelve letters, that appeared originally in a newspaper, published at tin? city of Burlington, in this state, addressed to the pcoph? of New Jersey, and signed, “a citizen of Burlington.” The first letter of the pamphlet contains the following spe¬ cific charges: First. That the number of passengers h.as been far greater than has been reported for the payment of transit duly. Second. That the quantity of freight carried on the rail¬ road, has been far larger than the amount reported for transit duty. Third. That the quantity of freight carried on the canal, has been far larger than has been reported for transit duty. Fourth. That the returns made to the treasurer’s office, have been false and fraudulent. Fifth. That the company, or its managers, are largely in¬ debted to the state on that account. Sixth. That the quantity of passengers has greatly ex¬ ceeded the number reported to the stockholders. Seventh. That the quantity of freight passing on the road, has greatly exceeded that reported to the stockholders. Eighth. That the quantity of freight passing on the canal, has so greatly exceeded that reported to the stockholders, that a large portion of it has paid neither freight nor toll, nor transit duty. Ninth. That a large proportion of the earnings of the ma¬ chinery of the company, has never reached the com]wn5'’s treasuiy. Tenth. That large sums, wliich have reached that Irea- smy, have subsequently been abstracted therefrom. Eleventh. That the accounts rendered to the stockholdei's, have throughout been falsified, to cover those abstractions. Twelfth. That the statements furnished to the state di¬ rectors, were fabricated for a purpose, and cannot represent any state of things standing, or that should stand upon the company’s books. The effort is made, in tlie remaining letters of the pam¬ phlet, to enforce and sustain the above charges. ORIGIN op THE COMPANIES. A brief notice of the origin of the joint companies, and of the pecuniary interests of the state in connection with them, may be of some value, before stating the facts bearing upon the above charges. It is true that the people of New Jersey have liad somo Opportunity of becoming tolerably familiar with the history and operations of these corporations. Still, as it is alleged that these operations, for years past, have been characterized by gross abuses and deliberate 15 fraud, to llie serious detriment of tlie revenues of the state, as well as of the interests of private stockholders, a brief statement of the reserved .rights .of the state, under the origi¬ nal charters, and the several supplementary acts in imme¬ diate connection with the abuses charged, may perhaps be of service in duly estimating the facts to be reported in re¬ ference to those alleged abuses. We premise the remark, that it is not our province, nor do we intend in this report, either directly or indirectly, to ex¬ press any opinion with respect to the wisdom or policy of the course of legislation that has been adopted, with refer¬ ence to the joint companies. On the fourth day of February, 1830, the legislature of Now Jersey created the Delaware and Raritan Canal Com¬ pany, and the Camden and Amboy Railroad and Transport¬ ation Company, by separate and independent charters. Both acts of mcorporation passed the legislature upon the same day. The capital stock of each company was fixed,- by the re¬ spective charters, at one million of dollars, divided into shares, of one hundred dollars each; with the privilege of increasing the capital stock of each company, any sum not e.xceeding five hundred thousand dollars. ' Each company availed itself of this privilege of increase, to its full extent; and the capital .stock of each company is now one million and a half of dollars, represented by stock, at one hundred dollars per share. In addition to the capital stock, all called in, the compa¬ ny found it necessary to make large loans of money, both in England and in the United States, which were principally expended in the completion of their works. These loaus will be more particularly mentioned in a subsequent part of this report. The legislature reserved the right of subscrib¬ ing, within a limited time, on the part of the state, for one- fourth of the capital stock of each company. This right was subsequently waived by the legislature, or, at least, they omitted to e.xercise it. It was required by the charters, that tire canal and feeder should be completed in eight years, and the railroad in nine 16 years, after the acts passed, otherwise the charters were to he void. The said canal, feeder, and railroad, when com¬ pleted, were declared to be public highways. And it was further provided, that if, after the same are completed, cither of the said companies shall abandon their respective works, or cease to use and keep the same in repair, at any time for three successive years, that then and in that case their char¬ ter should be annulled, and the title to the lands over which the said works shall pass shall be revested in the persons from whom they were taken, their heirs, or assigns. TOLLS ON THE CANAL. By the 17th section of the canal charter, the company were authorized to demand and receive such sum or sums of money for tolls, and the transportation of persons, and every species of property whatsoever, on said canal and feeder, as they shall from time to time think reasonable and proper; provided, that they shall not charge more than at the rate of four cents per ton per mile toll for the transportation of eve¬ ry species of property, nor more than five cents per mile toll for the carrying of each passenger on the canal, and not more than half that rate of toll on the feeder. TOLLS ON THE RAILROAD. By the 16th section of the railroad charter, the company were authorized to demand and receive such sum or sums for tolls for the transportation of persons and every species of property thereon, as they shall from time to time think reasonable and proper; provided, that they shall not charge more than at the rate of eight cents per ton per mile for the transportation of every species of property, nor more than ten cents per mile for the carrying of each passenger. By the act entitled, “ An act relative to the Delaware and Raritan Canal, and the Camden and Amboy Railroad and Transportation Companies,” passed February 15th, 1831, it is provided, that it shall not be lawful for the said companies to charge more than three dollars for the transportation of 17 passengers from and to. the cities of New York and Phila- TKANSIT DUTIES ON CANAL. Ify the 26th section of tlie canal charter, it was enacted, that, from and after the completion of the said canal and feeder, it shall he the duty of the treasurer of the said com¬ pany, under oath or affirmation, to make quarterly returns of the number of passengers, and the number of tons of mer¬ chandise, and other articles, transported thereon across the state, to the treasurer of this state for the time being, and thereupon to pay the said treasurer of this state the sum of eight cents for each passenger, and the sum of eight cents for each and every ton of merchandise to be transported there¬ on; excepting the articles of coal, lumber, lime, wood, ashes, and similar low priced articles, for which two cents per ton shall bo paid, as aforesaid; and that no other tax or impost shall bo levied or assessed upon the said company. TKANSrT DUTIES ON RAILROAD. By the 23d section of the railroad charter, it was made the duty of the treasurer of that company, from and after the completion of the road or roads, to make quarterly returns, under oath or affirmation, to the treasurer of this state for the time being, of the number of passengers, and the number of tons of goods, wares, and merchandise transported upon said road or roads; and thereupon to pay the said treasurer of this state at the rate of ten cents for each and every passen¬ ger, and the sum of fifteen cents for each and every ton of merchandise, so transported thereon; and it was provided that no other tax or impost shall be levied or assessed upon the said company. By the 24th section of the same charter, it was enacted, (hat if the state of New Jersey shall authorize the construc¬ tion of any other railroad for the transportation of passen¬ gers across this state, from New York to Philadelphia, which road shall be constructed and used, and which shall com- is metice and terminate within three miles of the conunence- ment and termination of the said roads authorized by the said charter, then the payment of the said sum of ten cents for each passenger, and fifteen cents per ton for merchandise, to the treasurer of this state, shall cease, and the said company was thereby exonerated from the payment thereof; yjrouiffcrf, that if any other railroad shall be constructed for the trans¬ portation of passengers from Philadelphia to New York, it shall be liable to a tax, not less than the amount payable to the state by this company. It would appear, by the above cited 23d section of the railroad charter, that the company Avere required to pay the transit duties reserved by it, upon all way passengers and merchandise transported for any distance upon the said rail¬ road, as well as upon “through” passengers and merchan¬ dise. This section, horvever, was modified by the 3d section of the supplemental act, of February 4th, 1831, which provides, “that the said company shall pay to the state the sum of ten cents for each passenger carried on the said railroad or roads across this state, between the Delaware rh^er and Raritan bay; said payments to commence Avhen said road is so far completed that passengers are transported thereon across this state, instead of a ratable tax for passengers, as reserved in the said act of incorporation.” Afterwards, by an explanatory joint resolution of the le- Sislaturc, passed March 10th, 1842, which Avas accepted and assented to by the joint companies, the question of transit duties, payable to the state for passengers and merchandise transported on the railroads of the company, Avas finally ad¬ justed and settled upon its present footing. That resolution, among other things, required from the joint companies the payment of a transit duty of ten cents upon every passen¬ ger, and fifteen cents for every ton of goods, Avares, and mer¬ chandise theretofore.transported, and ten cents for every pas¬ senger, and fifteen cents for every ton of goods, Avares, and merchandise thereafter to be transported, on any railroad or railroads belonging to the said companies, from Camden, Burlington, BordqntoAvn, the Trenton DelaAvare bridge, the city of Trenton, or any other point or place on the Delaware river, to South Amhoy, the city of New Brunswick, or any other point or place on the Raritan river or bay; and from South Amboy, the city of New Brunswick, or any other point or place on the Raritan river or bay, to the city of Trenton, the Trenton Delaware bridge, Bordentown, Bur¬ lington, Camden, or any other point or place on the Dela¬ ware river. We are particular in referring to this resolution, because it unfortunately happens (as will hereafter appear) that we dif¬ fer with the companies in the construction which they have put upon it, since 1846, with reference to a comparatively small amount, of what is called way freight, carried on the railroad. We will here add, in this connection, that our investiga¬ tion satisfied us that all the way passengers and merchan¬ dise transported on the railroads of the companies prior to the passage of this resolution, that came within its provi¬ sions, were subsequently returned to the state treasurer, by a supplemental return, made in 1843, and the transit duties paid. GUARANTEE OP TUIRTV THOUSAND DOLLARS. By the 3d section of an act, passed March 2d, 1832, which we will presently notice more particularly, it was enacted— “ That if, within one year from the time that the said rail¬ road from Bordentown to South Amboy, is so far completed that passengers and merchandise be transported thereon, the transit duty reserved by the acts incorporating said compa¬ nies, and the dividends on the stock hereby authorized to be transferred, shall not amount to thirty thousand dollars, it shall be the duty of the said companies to pay such deficien¬ cy to the treasurer of this state, out of the joint funds of the said companies, before any dividend is made to the stock¬ holders; and that each and every year thereafter, such defi¬ ciency, if any shall exist, shall be paid by the said compa¬ nies, so as to secure to the state the aforesaid sum of thirty thousand dollars, at least, in each and every year during said charter.” . 20 STOCK HELD BY THE STATE IN THE JOINT COMPANIES. By the railroad charter, the reserved right of the legisla¬ ture to subscribe to the one-fourth, or less, of the capital stock of that company, before mentioned, was limited to the first day of January, 1831. The legislature did not subscribe, as before stated. By the “ Act relative to the Camden and Amboy Railroad and Transportation Company,” passed February 4th, 1831, already referred to, it was made lawful for the said company to transfer to the state one thousand shares of the capital stock of the company, without the state paying any thing for the same, by way of instalments or otherwise; the divi¬ dends on which stock were to be paid to the state, in the same manner as if she had subscribed and paid for it, with the right, on the part of the state, to appoint one direc¬ tor to represent the said stock; but that no vote should bo given for said stock at any election for directors of the com¬ pany. The proposed transfer was to be made, however, upon this condition, imposed by the act: that the the stock was to be transferred to the company, whenever any other- railroad or roads, for the transportation of passengers and property between New York and Philadelphia, across this state, shall be constructed and used for that purpose, under and by virtue of any law of this state or of the United States. The 7th section of this last mentioned act declares, tliat it shall not be lawful to construct any other railroad or roads, for the transportation of passengers across this state, within three miles of the road of the said Camden and Amboy Railroad Company, until after the time limited in the twenty- first section of the act of incorporation of said company for the completion of the said railroad. The 5th section provides, that upon filing the assent of the company to this act, in the office of the secretai-y of state, this act shall be deemed and taken as part of the charter of said company; which assent shall be filed within five days after the passage of this act, otherwise the act, and all the provisions contained in it, shall be void. The assent of the company was duly filed to this 21 act, and it thereby became a part of their charier. In pur¬ suance of this act, the one thousand shares of stock of the railroad company were duly transferred to the state, and a director was afterwards appointed to represent it. The conflicting interests of the canal and railroad compa- iries, having brought them in collision in some of their ap¬ plications to the legislature, all future difliculties of that kind were removed by the act,passed February ISth, 1S31, already referred to, entitled, “An act relative to the Delaware and Raritan Canal, and the Camden and Amboy Railroad and Transportation Companies.” By this act, the capital stock of the two companies was consolidated, and declared to be joint stock; the two companies were completely united, and made one in mterest, and amalgamated into one joint con¬ cern; with this proviso, among others in the act, that before this act shall take effect, the assent of the stockholders holding seven-eighths of all the stock of the said Delaware and Rari¬ tan Canal Company, and the said Camden and Amboy Rail¬ road and Transportation Company, to the provisions of this act, shall be certified to the satisfaction of the governor, and filed in the office of the secretary of this state. This assent was duly filed. It provided further, that the said canal from the Delaware to the Raritan, and feeder, and the said railroad from Camden to Amboy, shall be completed within the time specified in the respective charters. And further; that if one of the said works, at the expiration of the aforesaid time, is completed without the other, that then and in that case the works so completed shall be forfeited to the state of New Jersey; and also, that the right of the legislature to take the works, or either of them, at the expiration of their respec¬ tive charters, was not to be affected or impaired by this act. By the 23d section of the canal charter, the legislature re¬ served the right, before mentioned, to subscribe, on the part of the state, for the one-fourth, or less, of the capital stock of that company “for the space of two years after the com¬ pany shall have fixed upon and agreed to the size, dimen¬ sions, and routes or location of the said canal and feeder.” This 23d section of the canal charter, reserving the right to subscribe on the part of the state, was repealed by the last section of the act, passed March 2d, 1832, and which is usu¬ ally distinguished as the “Protection bill.” It is entitled, “A siq)plement to an act entitled, an act relative to the Delaware and Raritan Canal, and the Camden and Amboy Railroad and Transportation Companies.” That is the union act cited above. This is an important enactment, being the one under or by virtue of which the joint companies claim and insist upon their exclusive privileges. It first authorizes the joint companies to transfer to the state one thousand shares of the joint capital stock, upon which all instalments shall be paid by the companies; the state to receive the divi¬ dends upon it, the same as if she had subscribed and paid for it. The state was also entitled to appoint one director to represent the said stock, but that no vote should be given for it, at any elections of the stockholders. The act then de¬ clares, that it shall not be lawful, at any time during the said railroad charter, to construct any other railroad or railroads in this state, without the consent of the said companies, which shall be intended or used for the transportation of passengers or merchandise between the cities of New York and Philadelphia, or to compete in business with the railroad authorized by the act to which this supplement is relative. The 3d section of the act, securing to the state ^30,000, yearly, from transit duties and dividends on one thousand shares of stock, has already been cited, in connection with the subject of transit duties. The act further declares, that the companies shall not retain a siu’plus exceeding the sum of one himdred thousand dollars, after declaring a dividend. It also makes it the duty of the companies to construct a lat¬ eral road, from some suitable point on said road, at or west of the village of Spotswood, to a suitable point or points in the city of New Brunswick; with the proviso, that they shall not charge more than two dollars and fifty cents for each and every passenger carried thereon from and to the cities of New Brunswick and Philadelphia. The 7th section of the act requires the written assent of a majority of the stockholders of the said companies to the provisions of tlie act, to be submitted to, and approved by the governor of the state, and filed in the office of the secretary of state within 23 forty days, otherwise the act to be void. This assent was duly filed in the secretary’s office. The one thousand shares of the joint capital stock of the companies was, in due form, transferred to the state,and a director appointed to representit. The last section of the act repeals the 23d section of the canal charter; that section reserved to the legislature the right to suhscribe for the one-fourth part of the capital stock of the canal company. RIGHT OF REDEMPTION. In the original charters of the joint companies, the legis¬ lature reserved to the state the right to take the worlcs of each company, with their appendages, at an appraised valu¬ ation, as directed by the said charters, at the expiration of thirty years from the time they were respectively completed. This right of redemption, with respect to the canal, was ex¬ tended to fifty years from the time of its completion, by a sup¬ plement to the canal charter, passed February 3d,-1831. This supplement also declared, that it shall not be lawful to con¬ struct any railroad across the state, between the Delaware and Raritan rivers, within five miles of any point on the canal, until after the time limited for the completion of the canal and feeder; excepting, however, all just and legal rights, already vested, to the contrary of that prohibition. And it provided, that nothing in that supplement contained should prevent the slate from authorizing the construction of a railroad between the Delaware and Raritan rivers, after the said canal and feeder shall be completed; always giving to the said Delaware and Raritan Canal Company the refusal of constructing the said railroad ; with the further declaration and provision, that the privileges thereby granted were upon the express condition, that the said canal shall be construct¬ ed, from the Delaware to the Raritan river, seventy-five feet wide on the water line, and the water therein to be seven feet deep throughout; the locks thereof, to be at least one hundred feet in length, and twenty-four feet in width, in the clear. The original charter required the construction of a ca- nal, at least fifty feet wide at the water line, with five feet depth of water throughout. By the 4th section of the act, passed February 4th, 1831, entitled, “An act relative to the Camden and Amboy Railroad and Transportation Company,” before referred to, it was directed, that the appraisement, at Avhich the state may take the railroad at the expiration of the thirty years, as provided for in the charter, shall be made in reference to the actual value of the said road, and not with reference to the value of the stock; which appraisement shall not, in any event, exceed the actual cost and expenses inciuTed in the completion of the said road. There is no such provision with respect to the canal. FRAUDS OF THE CANAL COMPANY. By an act of the legislature entitled, “An act to prevent frauds in the manifests of vessels navigating the Delaware and Raritan canal,” it is provided, that every person having the charge or command of any vessel or boat navigating the said canal, shall produce to each and every collector of tolls a manifest in writing, containing a just and particular ac¬ count of all the goods, wares, merchandise, and other mat¬ ters on board of such vessel or boat; and that it shall he lawful for said collectors of tolls, if they shall deem it advi¬ sable, to require the said person, having the charge or com¬ mand of any such vessel or boat, to declare the truth of said manifest, under oath or aflirmation. which said collectors are, by the said act, authorized to administer. It also provides, that if, on examination of the cargo of said vessel or boat, it shall turn out that said manifest does not contain a true and just account of said cargo, the person having the charge or command of such vessel or boat shall forfeit and pay the sum of two hundred dollars to the canal company, to be re¬ covered by suit, with costs; and the toll collector is autho¬ rized to detain such vessel or boat, until the said penalty and costs are paid or secured. And it is further provided, that if any person, having the charge or command of such vessel or boat, shall falsely, wil- S3 fully, and corruptly swear or affirm, he shall be adjudged guilty of perjury. BRANCH ROAD TO NEW BRUNSWICK. To complete this brief outline of the several laws relative to the joint companies, we will add a cursory notice of the act of March 15lh, 1837, entitled, “A further supplement to the act entitled, an act relative to the Delaware and Raritan Canal, and the Camden and Amboy Railroad and Transpor¬ tation Companies.' By this act, the united companies were authorized, with their joint funds, to survey, lay out, and construct a railroad, with all the necessary appendages, to commence at some suit¬ able point in the city of New Brunswick, where the same shall connect with the southwesterly end or termination of the road of the New Jersey Railroad and Transportation Company; and thence to run, on the most eligible route, to the city of Trenton, and thence to some point on the line of the Camden and Amboy railroad, at, or .south of the bo¬ rough of Bordentown; and then to connect with the said Camden and Amboy railroad, with a .spur from some point on said road in the said city of Trenton, to the Delaware ri¬ ver, at the Trenton Delaware bridge. And, for the purpose of enabling the joint companies to construct the said roads, they were, by the said act, invested with all the powers and authority, privileges and emoluments, and subjected to all the provisions, conditions, liabilities, lim¬ itations, and restrictions contained in the original charters of the two companies, and the several acts supplementary thereto. The act also provides that the joint companies should pay to the state the same transit duties for goods, wares, and merchandise, and for passengers transported on or over said road, from Bordentown, from the Trenton Delaware bridge, or from the city of Trenton to the city of New Brunswick', or from the city of New Brimswick to Trenton, the Trenton Delaware bridge, or Bordentown, that they would be liable to pay for the same, if they had been transported on the Camden and Amboy railroad from Camden to South Amboy; provided however, that it shall not be lawful to charge more than live cents per mile for the transportation of each pas¬ senger on the said road, and not to exceed the same rate for the transportation of each and every v/ay passenger on the Camden and Amboy railroad. The act further dhected, that the railroad, tlierebv author¬ ized to be constructed, shall be redeemable by this state, at the same time that the said Camden and Amboy railroad is redeemable, or at any time afterwards, but not before, with¬ out the consent of the united companies, and on the same terms that the said Camden and Atnbotf railroad is redeem¬ able by the existing laws. By the 7th section of this supplement, it was enacted, that if the said joint companies sliall certify tiieir acceptance 'of this supplemental act, and in all things comply with the pro¬ visions thereof, and complete the railroad thereby author¬ ized within the time fixed for the construction of a lateral road from some point west of the village of Spotswood, to the city of New Brunswick, as required by the act of March 2d, 1832, that then and in that case the sixth section of the last mentioned act, requiring the construction of the said la¬ teral road, should be, and the same was thereby repealed. The joint companies duly certified their acceptance of the said supplement, and the roads authorized by it were con¬ structed within the limited time. WORKS OF THE COMPANIES AND THE TIMES OF COMPLETION. The Delaware and Raritan Canal extends from Borden- town, on the Delaware, to New Brunswick, on the Raritan river, forty-three miles in length, seventy-five feet wide at the surface, with an average depth of water of at least seven feet. There are at this time fifteen locks attached to the ca¬ nal, with an ascent and descent, in the whole, of one hun¬ dred and fifteen feet; all of them, with the exception of the one at the eastern terminus, at New Brunswick, one hun¬ dred and ten feet long between the gates, and twenty-four feet wide; the one at New Brunswick is one hundred and thirty feet long between the gates, and thirty feet wide. There are two outlet locks at Bordentown, each one overcoming the same elevation. With the main canal is connected a navigable feeder, run¬ ning from the Delaware river, at Black’s eddy, to the sum¬ mit level of the canal at Trenton, twenty-two and a half miles long, si.vty feet wide, and si.v feet deep. There is a guard lock at the entrance of the feeder at Black’s eddy, and a lift lock of ten and a half feet upon it, about eight miles below the entrance; the feeder is also connected with the Delaware river at the head of Wells’ falls, a short dis¬ tance below Lambcrtville, by an outlet lock of eleven feet lift: on the opposite side of the river, the Pennsylvania canal has, also, an outlet lock; thus forming, at that point, a con¬ nection, or communication, between the two canals. The feeder has a descent, at the bottom, of about two inches to the mile, and furnishes an abundant supply of wa¬ ter to the canal. The canal and feeder arc both constructed in the most substantial manner, with pivot bridges admitting the pas¬ sage of vessels with masts. The company own, at various points on the line of their works, suflicient offices and dwell¬ ings to accommodate their collectors, lock and bridge tend¬ ers, and other persons employed in the transaction of their business. They also own some other real estate, at different places along the line of their works, and have a surplus of water at several points on their canal and feeder, for a part of which they receive annual rents. The whole amount of the costs of construction of the ca¬ nal and feeder, and appendages, up to the year 1840, accord¬ ing to the books of the company, and a report made in that year by the directors to the stockholders, is two million eight hundred and forty-four thousand one hundred and three dollars and throe cents. It would appear by a report, or certificate, of the engineer of the canal company, filed in the office of the secretary of state, February 21st, 1838, that the canal and feeder were completed in January, 1838.' If this is to be considered as the true time when the canal and feeder were completed, then, according to the charter, at that 28 time the right of the state to receive transit duties from the canal company commenced. And we find that the first re¬ turn to the state treasurer, for transit duty of goods, wares, and merchandise transported through the canal, was made in 1838. The Camden and Amboy railroad runs from Camden, by way of Burlington, Bordentown, Hightstown, and Spots- wood, to South Amboy, on the Raritan bay. It is a single track, sixty-one miles and one-eighth in length, with suffi¬ cient turnouts, or double tracks, to enable trains, going in op¬ posite directions, to pass each other. The branch road runs from the main road, at Borden¬ town, by way of Trenton and Princeton basin, to the south¬ ern termination of the New Jersey railroad, within the lim¬ its of the corporation of New Brimswick, about three and'a half miles from the railroad bridge over the Raritan river at the city of New Brunswick. It has a single track, and is thirty miles and one chain in length, with a spur, or branch, seventy-six chauis in length, to the Delaware bridge at Trenton. The branch road has also the neces¬ sary turnouts to admit the passing of opposite trains. The whole length of the main road, and its branches, is ninety- two miles and forty-one chains. The whole length of the turnouts is ten and three-fourths miles. By the report, or certificate, of the engineer of the rail¬ road company, filed in the office of the secretary of state, on the 24th of Januaiy, 1839, it appears that the railroad was completed on the first day of the same month of January. But on the 17th December, 1832, the road from Bordentown to Amboy was so far completed, that passengers and mer¬ chandise were transported over it; consequently, the right of tlie state to receive transit duties from the railroad company commenced on that day, by virtue of the aet of February 4th, 1831, before mentioned. The question, therefore, of the actual time when the railroad was completed, is of no mo¬ ment to the state, with regard to the transit duties; and is only important in reference to the limitation of the charter. Transit duties have, in fact, been paid by the railroad com¬ pany from said 17th December, 1832. 29 It also appears, by the books of the company in 1840, and the report of the joint board of directors of that year, men¬ tioned above, that up to that time the costs of construction of the main line of railroad, with its branches and append¬ ages, amounted to the sum of three million two hundred and twenty thousand eight hundred and fifty-seven dollars and two cents. We again remark, that we have made no examination of the construction account of either the railroad or canal. The amounts above stated are given in the aggregate, from the books of the companies, as they appeared upon them in the year 1S40, without any investigation, on our part, (from want of time, as before mentioned,) into their accuracy. Nor do we intend, by this explanation, in any way to impeach or call in question the truth and correctness of the construction accounts, as they appear on the books of the companies. We do not wish to be understood as giving any opinion upon that subject; wc leave it to be exammed by those whose duty it may be hereafter to deal with it. . OKGAXIZATIOX OF THE .lOl.NT UOAllD. The stockholders of each of the associated companies meet annually, at the time named in their respective charters, and elect a board of directors of each company. These boards af¬ terwards meet and organize, separately, by appointing a pre¬ sident, secretary, and treasurer, and such other officers as may be necessary. The two boards, with the two state directors, then meet at the general office of the companies, at Bordentown, and or¬ ganize a joint board of directors, by the appointment of a president and secretary of the joint board. This joint board manage, control, and direct all the alfairs, business, and con¬ cerns of the two companies, in joint meeting. They also appoint a general superintendent of the ac¬ counts of both companies, and a committee, called an execu¬ tive committee. This committee originally consisted of the presidents and treasurers of the companies ; afterwards, by resolution of the joint board, a special executive committee was appoint¬ ed, without reference to the offices which the members of it held in connection with the companies. Such appears, by the minutes of the joint board, to have remained the prac¬ tice up to the present time. The late John Potter, esq., was the president of the joint board, from its first organization up to the time of his death. For several years past, John R. Thomson has been secretary of the joint board, and Richard Stockton superintendent of accounts. At this time the executive committee consists of six persons, all of whom are members of the joint board. The members of this conmrittee receive no compensation, except such as they are entitled to by virtue of their other appomtments. Their duties appear to be, to carry out the directions of the joint board, and to act in all matters and cases, that re¬ require attention and direction, during the recess of the board. This executive committee is generally composed of the sa¬ laried officers of the two companies, and, consequently, of such persons as arc actively engaged in the service of the companies. The result is, that much of the executive portion of the business of the companies devolves upon them, in conjunction with the superintendents, appointed by the sepa¬ rate boards of directors. MANNER OF CONDUCTING THE INVESTIGATION. We beg leave to premise a word or two, with respect to the mamier in which the investigation was conducted. We were early satisfied that it was absolutely necessary, before commencing a work of such magnitude, to adopt a definite plan or system of proceeding, if we hoped to finish the uivestigation witliin any thing like a reasonable time. We endeavoured, therefore, as far as was practicable, to make out, and prescribe for ourselves, such a plan of opera¬ tions. Before takmg up the specific charges, or hearing any evidence in reference to them, we thought it advisable to make ourselves familiar with the books, accounts, and the 31 general mode of conducting the business and allairs of the companies. This appeared indispensably preliminary to any intelligent examination of charges, which, in the main, were to be proved or disproved by the books and accounts. With this view, some time was devoted to a general ex¬ amination of the ordinary routine of business of the eompa- nies, their books of aecoimt, and the mode of keeping them. It is proper to state that, at an early stage of the investi¬ gation, Joseph P. Bradley, esq., appeared before us, as the authorized agent and counsel of the joint companies, and tendered himself ready to respond, in behalf of the compa¬ nies, to any calls we should make for books, papers, or in¬ formation of any kind, connected with the investigation. Mr. Bradley attended us, in this capacity, through the whole of the investigation, and produced all the books, vouchers, accounts, and papers that we required. In no in¬ stance did the companies refuse or decline to produce any book, paper, or voucher that we had occasion to examine. After .this general inspection of the books and papers, we entered upon the investigation of the particular’charges. In conducting that investigation, our primary object was to as¬ certain facts, independent of any prior reports or statements from any quarter, in reference to the same matters. It rvas not our principal object to reconcile prior conflicting re¬ ports and statements, but to ascertain the truth, to the best of our ability, of the charges submitted to us. It is true that the “pamphlet” containing the charges, enforces them by reference to . such reports and statements. But in our view, if those reports, although emanating from the direct¬ ors of the companies, could be considered as evidence at all, it was but of a secondary character. We resorted, at once, to the books, papers, and records of the companies, as furnishing the primary evidence, which alone could be safely relied upon. In addition to this evi¬ dence, we had from time to time, as occasion required, the testimony, under oath, of a number of the officers, clerks and agents of the companies; principally, however, in ex¬ planation of the books, accounts, and method of transacting business, and to verify the books and papers, as authentic records of the business transactions of tlie companies. Every book, account, and voucher, examined and relied upon by us, was verified by the oath of some competent clerk or agent of the companies; and that they were the only books contain¬ ing any charges or entries respecting the particular matters in question. In other words, that the companies did not keep two sets of books. We do not know that any one ever seriously charged or pretended that they did keep different books for the same transactions, although it may have been indirectly lusiimated. We may dismiss this idea with the remark,that we did not discover any thing durma the mvestiaation that gave the least colour to such an injurious suspicion. In ad¬ dition to that, the veiy satisfactory evidence of all the high¬ ly respectable witnesses connected with the companies, who were examined, distinctly negatived any such suspicion. We also examined the book of minutes of the joint board of directors, the executive committee, and ol the several meetings of the stockholders heretofore held. In addition, several of the contracts and agreements made by the joint companies with other companies and individuals, more jiar- ticidarly referred to hereafter, were submitted to, and in¬ spected by us. Besides the officers, clerks, and agents of the companies examined, we also examined, under oath or af¬ firmation, such other persons as we were well advised, or had reason to believe, could give us any information in re¬ ference to any matter connected with the investigation. The testimony of all the witnesses examined by us, is herewith submitted to the legislatino. In those depositions will be foiuid many interesting and important facts, as well as a very mmute detail of the particular manner of conduct¬ ing each department of the operations of the joint compa¬ nies. We shall have occasion, in subsequent parts of this report, to notice more particularly the testimony of some of the witnesses, in immediate connection with specific points of in¬ quiry. We respectfully refer the legislature to the testimo¬ ny of the witnesses, for a more minute and particular detail of the business operations of the companies, than can be given in this report, witlioiil extending it to a very unreason¬ able length. Mr. Henry C. Carey, tin? admitted author of the “pam¬ phlet,” had several interviews with us, during, and upon the subject of the investigation. lie also furnished us, at differ¬ ent times, with several communications, documents, and statements, some of them manifestly prepared with great labour, research, and miuutcuess, and well calculated to aid the examination. In addition to the testimony of witnesses, the general ac¬ curacy of the books of account examined by us was satis¬ factorily tested, by comparing the entries in them with the original papers and vouchers, such as way bills, manifests, receipts, &c., upon which the various entries were predica¬ ted. Some few clerical errors were discovered. We were satisfied, however, that the books of the company are enti¬ tled to full faith and credit, as authentic records of their busi¬ ness operations, with the exception of the omissions hereaf¬ ter particularly noticed. The specific charges were examined in detail, and very much in the same order in which they are presented in the “pamphlet.” Considerable time and much labour were devoted to the preparation of various tabular statements, designed to ex¬ hibit, in a condensed view, the very extended business op¬ erations of the companies. They will be found in this re¬ port, attached to their relative heads of iiupiiry. We will now proceed with the details of our investigation. And first with respect to the The oflicers of the Camden and Amboy Railroad and Transportation Company arc, Robert L. Stevens, president and chief engineer, William II. Thomson, secretary, and Ed¬ win A. Stevens, treasurer and superintendent. William II. Gatzmer, at Philadelphia, and Ira Bliss, at New York, are the general receiving and disbursing agents of the company for the passenger lines. William S. Free- 54 man, at Philadelphia, and Alfred Decker, at New York, per¬ form the like duties, as general- receiving and dishiu'sing agents for the transportation business over the railroad. The way transportation is under the direction of Benjamin Fish, as central agent at Trenton. The first charge in the “pamphlet” is, that the number of passengers has been far greater than has been reported for transit duty. The passenger business on the railroad is conducted in the following maimer; An assortment of tickets, for each line, is furnished from the offices of the general agents in Philadelphia and New York, embracing the difl’erent stations on the route, to the ticket clerk at the station, or on board the steamboat which starts with the line. The ticket clerk in the office keeps a memorandum of the luunber of tickets of each kind issued, and charges the clerk who receives them with the amount in money. The ticket clerk on the line furnishes each passenger with a ticket, upon the payment of the fare, and enters the name of the passenger, and where from, and where to, with the amount of passage money, on a way bill. A duplicate of this way bill is made out of the lines run in connection with the New Jersey Railroad Company, but not of the lines by way of Amboy. On the latter route, the ticket agent on the line, after issu¬ ing all the tickets called for, and making out his way bill, delivers to the conductor of the train a memorandum of the number of passengers to stop at each station. On the upper route, in coimection with the New Jersey railroad, he delivers to the conductor the duplicate copy of the way bill, which he makes out; he then returns to the city from which the line started. Before returning his way bill at the office, the ticket agent of the line receives from the conductor of the. return train, and enters on his way bill, the money received by the said conductor for way fares received by him for jiassengers en¬ tering the train on the way. He then returns the way bill, and the amount of money which it calls for, to the proper office, at each end of the line, and also the balance of tickets .not disposed of; and the account of his day’s transaction i.s then examined by the ticket clerk in the office. The ticket agent of the line must account for the number of tickets issued and charged to him, as before stated, either in money or by a return of the tickets. The amount of mo¬ ney received by him from the return conductor is exhibited by a way bill, kept by the said conductor, and signed by him, which he delivers to the said ticket clerk, and which the lat¬ ter returns with his own way bill, as his voucher for the amount of money thus received. Tickets are issued in New York, from the office of the New Jersey Railroad and Transportation Company, for the lines from that city, by the way of Newark, New Bruns¬ wick, and Trenton. The way bills are prepared, and ac¬ counted for by the agents of that company, and a duplicate copy, for each train, is sent on with the conductor to Phila¬ delphia. A set of tickets, embracing an assortment for the different points on the route, is furnished to each conductor of a train, in sufficient number to supply the probable de¬ mand. Such of these tickets as are given out by him to per¬ sons going beyond his route, arc taken up by other persons, who, to that extent, are a check upon him. But ticlcets to way passengers between stations, are usu¬ ally taken up by himself, and with respect to them, his own account must be relied upon. The particular duly of each conductor, is given at length in the testimony. One of the Avitnesses also stated to the commissioners certain other re¬ gulations that were enforced respecting way tickets between stations, given out and taken up by the same conductors, well calculated to prevent frauds by them, were they dis¬ posed to commit them. From the system of checks adopted, there would seem to be hardly any room for fraud, by the agents, in any other branch of the passenger business. The clerk of each line, as above stated, returns, daily, a way bill, showing the number of passengers carried, tvliere from, and rvhere to, and the amount of money received for them. This way bill is examined by the ticket clerk, to see if all the tickets issued are accounted for; then the clerk who keeps the abstract book examines to see that the proper fares are charged in the way bill, and that the amounts are cor¬ rectly extended and added up. He then enters the number' of passengers and the amount of money on the abstract book, called the daily abstract book, under their appropriate heads, and the clerk who has charge of the day book enters the amount in the day book. The results of the settlements with the Philadelphia and Trenton Railroad Company and the New Jersey Railroad Company are entered in the day book after settlement, generally monthly. The returns from the railroad and transportation agents are also entered in the office of William H. Gatzmer,at Philadelphia, monthly. Other receipts are entered, when received, as nearly as practicable under their appropriate heads, in the day books, the bills and vouchers being carefully examined by the bookkeeper, before he enters them. At the close of each month, abstracts of the receipts and disbursements are forwarded from each office in Philadelphia and New York, before named, to the general agent. Captain Richard Shippen, at Bordentown. This abstract contains the whole amount of receipts, by each office, from passengers, transportation of merchandise, and other somces; also the number of passengers dutiable, as taken from the daily ab¬ stract books; also the whole amount of tonnage of through and way freight, and the dutiable way freight. It shows, also, the disbursements for all purposes during the month. The agents of the passenger and transportation lines, to¬ gether with the executive committee and the superintendent of accounts, meet monthly at Bordentown, and examine the abstracts or statements of the business above named, by the proper way bills, vouchers, and receipts; and, if found to be correct. Captain Shippen enters them in the general abstract book, kept by him at that place. This general abstract book contains the entire contents of the monthly abstracts or state¬ ments rendered to Captain Shippen, the general agent at Bordentown, by the agents in New York and Philadelphia, before mentioned. It is intended to present the whole cur¬ rent business operations of the railroad, both as to receipts and expenditures. It is also mtended to present the whole 37 number of passengers and the number of tons of merclian- dise transported across the raib'oad, liable to transit duty. It also exhibits the number of passengers and the amount of merchandise not liable to transit'duty. It also exhibits the amount due from the Philadelphia and Trenton Railroad Company, for passengers transported by way of Trenton and New Brunswick. The daily accounts of the receipts of the lines running over the branch road, in connection with the Philadelphia and Trenton, and the New .Tersey railroad, are kept in the office of the Philadelphia and Trenton Railroad Company, at Philadelphia, by .Tames Morrell, secretary of .said compa¬ ny ; and in New York, a daily account of the same lines is kept by the New Jersey Railroad Company. At the close of each month, Mr. Morrell, of the Philadelphia and Trentoit Railroad Company, and the agent of the New Jer.sey Rail¬ road Company, meet together alternately, at Philadelphia and New York, with abstracts of the month’s business, and make a statement and settlement of all matters in which the New Jersey railroad is interested. They make a division of the reeeipt.s, according to the contract or agreement be¬ tween the companies, Mr. Morrell acting on behalf of the Trenton and Philadelphia Railroad Company and the joint companies. The amoiint which may be found dtte from the New Jersey Railroad and Transportation Comjrany, on such settlement, is paid over to Mr. Morrell. A settlement is then made between the Camden and .Amboy Railroad Com- patiy and tbe Philadelphia and Trenton Railroad Company, according to the terms of the contract between them. I'liis settlement is made' by Mr. Morrell and Mr. Gatzmer, and the amount found due to the fkamdon and Amboy Railroad Company is paid over to Mr. Gatznier. The principle of the division is this: the money received is divided between the two companies in proportion to the distance which the. passengers are carried over each road, respectively ; each company receives the whole way fare of passengers travel¬ ling exclusively on their own road. The Camden and Am¬ boy Railroad Company furnish all the machinery, .such as- sleamhoats, locomotive.s, and cans. They also furni.sh tha fuel and pay the hands. In consideration thereof, the Phil¬ adelphia and Trenton Railroad Company pays the Camden and Amboy Railroad Company ten thousand dollars per month. This is the.usual rate; it has sometimes varied from this sum. No additioiml compensation is now paid when, for any reason, the trains are obliged to run over the Camden and Amboy road from Trenton to Camden. The through fare on this route has been, until recently, four dollars; out of this, the New Jersey Railroad Company receives one dol¬ lar. The other two companies received three dollars, and di¬ vided it, as above stated, according to the distance. These have been, until recently, passenger lines exclusively. Mr. Morrell, the secretary of the Philadelphia and Trenton Rail¬ road Compairy, is required to return, under oath quarterly, to the treasurer of the Camden and Amboy Railroad Com¬ pany the number of passengers transported across the branch road between Trenton aird New Brunswick, in order to en¬ able him to return them to the state. Thus the treasurer is enabled, by footing up the general abstract book, kept at Bordentown, before named, and add¬ ing thereto the number returned to him by Mr. Morrell, to ascertain, and return to the state treasurer, the whole amount of dutiable passengers and merchandise for each quarter. We will take this opportunity to say that, in our opinion, the system adopted for conducting the passenger business on the railroad, with a slight exception as to the manner in which excursion passengers were in some cases formerly en¬ tered, is justly entitled to commendation. It has the merit of simplicity, perspicuity, and precision; while it secures the faithful discharge of duty, it at the same lime affords protec¬ tion against fraud and imposition. William H. Gatmer and Ira Bliss, the two principal agents of the passenger lines in the cities, and Capt. Richard Shippen, the principal agent of the railroad company at Bor¬ dentown, have given us, in their testimony, a clear and satis- iactory accoimt of the system, and its practical operation.— The books examined by us are kept in complete order. Much of the credit which may be claimed for the system, is'undoubtedly owing to the integrity and ability with which it has been conducted by the respectable and eillcicnt officers, agents, and clerks connected with it. It appears to us that the checks imposed upon the several agents, conductors, and other subordinates, are such that a breach of duty cannot escape prompt detection. Our investigation satisfies us that this branch of the rail¬ road business has been faithfully managed. The omissions in the returns to the state (herein after mentioned) of a small number of passengers, as compared with the vast number carried, we believe to have been occasioned entirely through inadvertence. For the purpose of ascertaining the truth of the charge above stated, we entered into a minute inspection and exam¬ ination of the original way bills, vouchers, books, papers, and documents, relating to the passenger business on the railroad, from the time it was opened, in 1832, up to January 1st, 1849. We soon ascertained that it would be impossible to go through with such particular examination, of the whole of the way bills, or even to compare them with the monthly statements and general abstract book; we therefore deter¬ mined to confine this minute and particular examination of lliese original vouchers, or records, to certain months in each year, agreed upon, and selected by ourselves. Our object was, by subjecting these original way bills of passengers, at dift’erent periods of time, to a close and criti¬ cal examination, and tracing the entries based upon them, through all the different books and statements, up to the gen¬ eral abstract book, to determine thereby the credit and au¬ thority which the' books of the companies were entitled to, as authentic records of their transactions. All the necessary way bills, statements, day books, legers, monthly statements, and abstract books, were accordingly furnished to us for that purpose, and the investigation was prosecuted in the manner above stated. In pursuing it, we carefully examined the original way bills of the different lines for the whole of the several months and periods of time selected. Wc extracted from them the whole number of passengers appearing upon them liable to transit duty for the month, and then compared our own calculations with the various monthly statements and entries in the books for tlie same period of time. A similar examination of all the Avay bills of the several passenger lilies would have extended this investigation al¬ most indefinitely; we therefore adopted and pursued the plan above stated, as the only feasible mode of ascertaining the facts in connection with the charge, with the reasonable presumption that the result we arrived at would not vary much from the truth, provided we found the entries in the books in the main correet. In addition, we had the evidence of the principal agents and clerks, as to the authenticity of the way bills and the truth and integrity of the books. We found that our calculations of the way bills, for the several periods of time selected, did in fact, in the general, substantially agree with the entries in the books for the cor¬ responding months. Being satisfied upon that point, we considered that the credit of the books was sufficiently established. We then made a calculation and statement from the way bills examined by us, and from the books of the company for the remaining time not covered by the said way bills, of the whole number of passengers liable to transit duty car¬ ried over the roads of the joint companies, from the com¬ mencement of business, in 1832, to January 1st, 1849, and contrasted our statement with the returns made to the state during the same time. The result of our investisration into the truth of the lirst charge, embracing the whole passenger business of the rail¬ road, is shown by the annexed table, marked number l; by which it appears, that froniDecembcr 17th, 1832, to January Ist, 1849, two million nine hundred and fifty-three thousand three hundred and twenty-three passengers, liable to transit duty, were carried over the roads of the joint companies, and that, during the same period of time, two million nine hun¬ dred and forty-five thousand seven hundred and twenty-nine passengers were returned to the state treasurer for transit duty, leaving a balance of nine thousand and one passen¬ gers, liable to transit duty, not returned. 41 Table Ko. I, showing, year I)y year, the wliole nurahcr of passoiigcrs siihjecl to traiislt duly, carried over the railroads of the joint coinpanies; the muuber re¬ turned for transit duty, in tlie regular quarterly and supplomenUil returns, from December 17th, 1832, to December 31st, 1848, as ascertained by the com¬ missioners; including, also, the way passengers made liable to transit duty, and returned, uiider resolution of 1842, for the years from 1833 to 1842, both olimvinfT nlsn tlio fUftftrnnr.R btitweeii the nunilinr ciirrioil jukI The foregoing table was prepared, in a somewhat con¬ densed form, not only for tlie purpose of exhibiting by it the result of our investigation into the passenger business on the. railroad, but also to shotv, in one tabular view, the whole of this braneh of the railroad business, from the time passen¬ gers were first transported over it, in 1832, up to January 1st, 1849. It will require, however, a few words of explanation.— The column of “ number carried liable to transit duty,” con- 42 tains, not only the dutiable passengers appearing on the books of the company prior to 1842, as ascertained by our owni in¬ spection and calculation, but also the way passengers from 1833 10 1842, inclusive, declared dutiable by the resolution of 1842, and returned in the supplemental return of 1843. This supplemental return shows how many of these way passengers were carried over the road in each of the years, from 1833 to 1842 ; and to this number is added the num¬ ber of dutiable way passengers of each year, respectively, as they appeared on the books. These dutiable way pas¬ sengers do not appear on the books, as the company did not consider them liable to the duty prior to the resolution of 1842. The original way bills and other papers had to be resorted to, to ascertain the number, when the return was made out. The passage money for those passengers was, however, regularly entered in the books, and accounted for with the other receipts. The number of dutiable passengers for the year lS3S,also includes (besides its portion of way passengers, as above mentioned.l 37,S32i passengers, carried in that year over the road, by the way of the Trenton bridge. The company considered that these passengers were not liable to transit duty, and did not return them. The matter was referred to the legislature, who decided that they were dutiable. A supplemental return was made in 1839, and lS3783.2o, the transit duty upon them, was paid to the state treasurer. The columns of the table are sufficiently explained by the caption to them. It will be seen that, for the years 1833 and 4, there was an e.\cess in the return, over tlic number carried liable to transit duty, of 9171 passengers. This number is deducted from the footing of the column of the whole number return¬ ed, because, up to that time, the transit duties and dividends on stock did not amount to the guarantee of S30,000. The transit duty on these passengers was not paid over and above the amount of the guarantee, and therefore they must not be set off against defective returns in subsequent 4:5 years; consequently they arc deducted from the whole num- her returned, in order to show the true state of the passen¬ ger account between the state and the companies. Our table is the result of close, minute, and tedious inves¬ tigation, and shows a deficiency in the returns to the state of 7593J passengers, from the opening of the railroad, in 1832, to January 1st, 1849, exclusive of the trips of the messenger with the express chest of Adams & Co. Consid¬ ering that nearly three millions of dutiable passengers were carried over the several roads during that tinie, the result may be justly considered as strong evidence of fidelity in this branch of the business. . It is but just to add a word, in e.xplanation of this defi¬ ciency: 4171-1 of the omitted returns were e.xcursion passen¬ gers, commencing in 1841, and terminating in 1848. These passengers, having but one ticket, were entered as single passengers in the books, and so returned to the treasurer of the state. But, as they passed twice across the state with the same ticket, they should have been doubled in the books, and so returned for transit duty. Thus it appeared, that in 1841, 1113 e.xcursion passengers, in 1845, 190, in 1846,4894, in 1847, 12475, and in 1848, 11313, in all 41713, were en¬ tered and returned single, when they ought to have been entered and returned double. We were entirely satisfied, by the evidence of Capt. Shippen, who acts as clerk for Edwin A. Stevens, the treasurer of the railroad company, and whose duty it is to make these entries in the general abstract book, and prepare the returns to the state treasurer, that the omis¬ sion was altogether through inadvertency, and unintentional on his part. Again, 2917 of the balance of omitted returns are for passengers in the second and third quarters of the year 1847, by the accommodation line between Trenton and New York. AVe found all the passengers by that line regularly entered in the books of the company, and also the receipts for pas¬ sage money. But in making out the returns to the state for the two quarters of 1847, before mentioned, the above stated omission occurred. Capt. Shippen, who prepared those re¬ turns, testified that he could not account for the mistake, nor was he aware of it, until it was discovered during this in¬ vestigation. He very frankly took the whole blame of it upon himself, and stated that Edwin A. Stevens, the treasurer of the railroad company, was always particular in charging him to be careful to have the returns to the state correct. We are fully satisfied that this omission, also, was purely the result of accident or inadvertency. The residue of the omitted returns for passengers, with the exception of the messenger with the express chest, is small in amount, and part of it, to the amount of 100 passengers, is a mistake in addition in the year 1846, as appears by the books. The messenger with the express chest of Adams & Co. is not entered in the books as a passenger. The officers of the company stated that he had never been considered as a pas¬ senger, and therefore had not been returned for transit duty; inasmuch, however, as the company receive, by contract, a certain sum for transporting the chest and messenger, which greatly exceeds what the chest would amount to at the ordi¬ nary charge for freight, we consider that the messenger ought to be rated as a passenger, and returned for transit duty. Wo have accordingly added the trips made by him to the omitted returns. By a supplement to the regular return of July, 1849,7295 J of the omitted passengers, according to the table, were re¬ turned to the state treasurer, and the transit duty paid, leav¬ ing 17064 passengers not returned prior to January, 1849. That wilt balance the passenger, account to that date. It will be remembered that the express messenger is here rctiuned for transit duty, only for the trips over the branch road between Trenton and Nerv Brunswick; the evidence being, that the express lines have separate contracts with the New Jersey Railroad and Transportation Company, for the transit over their road. DISCRErANCIES IN REPORTS RELATIVE TO PASSENGERS. By reference to the “painphlet,” it appears that some of the charges against the companies are predicated upon tlie apparent contradictions and discrepancies in the various re¬ ports made, from time to time, by the directors to the stock¬ holders. Without explanation, those discrepancies would seem to sustain some of those charges; and although the commissioners did not consider it their duty, as before re¬ marked, to consume much time in an effort to make conflict¬ ing reports harmonize, yet, as those discrepancies and the charges are somewhat connected, they thought it proper, if possible, to discover the cause of those discrepancies, and reconcile them, if the facts would warrant them in so doing. It is with this view that we have prepared the following table, marked No. 2, exhibiting the several reports made by the directors side by side, in contrast with the returns made to the state of the passenger business. The result of our investigation of the facts bearing upon the first charge, as shown in table No. 1, satisfied us that the apparent contra¬ dictions and discrepancies in the several reports could be explained and reconciled consistently with truth, and in strict accordance with the facts. Wo have endeavoured to do this, by the remarks and explanations which follow the table. In this connection, wc will also notice the sixth charge— which is, “ that the number of passengers has greatly ex¬ ceeded the number reported to the stockholders.” The an¬ nexed table has immediate reference to the charge, and the ensuing remarks upon the several reports set out in the ta¬ ble, will disclose all the important facts in relation to it. The number of passengers that actually passed over the road, as shown in table 1, as well as the remarks respecting that tabic, should be kept in view at the same time. The objects of the foregoing tabic, sufficiently appear by the caption to it, and the headings of different columns. The number of passengers returned to the state for tran¬ sit duty, in the years 1833, 4, 5, 6, and 7, so nearly corres¬ ponds, both with the number reported by the directors to the stockholders, and the number actually carried, as ascertained by the commissioners for those several years, as shown in table 1, that the commissioners did not think it necessary to spend lime in endeavouring to discover the cause of the im¬ material discrepancies. There is every reason to lielicve they are the result of clerical errors. The number of passengers reported to the stockholders, by the report of 1840, as “transported across the state” in the year 1838, is, as the table shows, 164,520. The number of passengers returned to llie state in the I'o- gular quarterly return for the year 1838, is 126,688. And by reference to the proceedings of the legislature, for 1838-9, and the stale treasurer’s account for 1838 and 1839, it will appear that S3783.25 was received by him for transit duty on passengers from the Camden and Amboy railroad for that year, over and above the amount due upon the regular quarterly returns for the year. This extra pay¬ ment, at ten cents per passenger, would call for and repre¬ sent 37,832J passengers; which, added to the number con¬ tained in the regular returns, makes the precise number re¬ ported to the stockholders, 164,520. The number of passengers reported to (he stockholders, as (ransported across the state for 1839, i.s 181,479 The number returned to the state is ISO,902 '. Dill'crence, 5761 The number for this year omitted to be rcturnccl, as as¬ certained by the investigation, is 487, as per table 1. The small discrepancy between the number that should have been returned, and that reported to the stocldmldei’.s, nm have not attempted to reconcile. It may have originated from the difference between the civil year and the fiscal year of the companies, which, prior to 16-13, run from December 48 1st to the last day of November. The smallness of the dif¬ ference repudiates any suspicion of design. The foregoing remarks will also apply to the immaterial discrepancies between the numbers returned to the state for the years 1840 and 1841, and those reported to the stock¬ holders for the same years, as appears by the above table. It will also be observed that in 1840, 582i more passengers were reported to the stockholders than were returned to the state. But only 18a more than were returned to the state, were actually carried, as ascertained by the investigation. And further, that in 1841, 6093 more passengers rvere re¬ turned to the state, than were reported to the stockholders for the same year. This would seem to be conclusive evidence that the difference is not intentional. We add further, that it is perfectly obvious that the report of 1842, for 1840 and 1841, is in error in calling the pas¬ sengers named in it for those years “through passengers,” because, as appeared by table 1, the number of “through passengers” mentioned in the report corresponds veiy near¬ ly with the whole number of dutiable passengers for those years, “through,” as well as way, as ascertained by our in¬ vestigation, after deductina: the way passengers made dutia¬ ble in those years by the resolution of 1842. The number of passengers returned to the state,for transit duty for the year 1842, is 164,120. The number reported to the stockholders, as hav¬ ing passed from “city to city,” in the report of February 1843, for 1842, is 144,108 In the eight years report of 1848, they are given as 140,72.5 Difference, 3,38.'! This difference of 3383 may be e.xplained thus: the per¬ son who prepared the report of 1843, has included in pas¬ sengers from “ city to city”— 1st. Excursion passengers, called New York bay excursion, amounting to 2141 2d. He has made an error in addition of 1000 3d. Leaving uncertain, or unaccounted for, 242 Making 338.1 Ill explanation of the difference between the number re¬ ported to the stockholders, and the nmnber returned to the state treasurer for transit .duty, Ave remark, that the number of dutiable passengers for 1842 is, of course, much greater than the nimiber carried from “city to city,” because all the dutiable way passengers are to be added to the “ through passengers,” or those carried from “ city to city.” The dutiable ivay passengers, prior to 1842, and for a small portion of 1842, were all retmiied separately for tran¬ sit duty by the general supplemental return made in 1843. But for the greater part of the year 1842, they are included in the regular returns, and thus form a part of the 164,120 returned for that year; and this has been the uniform prac¬ tice since 1842. It is apparent that the report of 1843 Avas intended to shoAV only the passengers carried over the Avhole line of the road from “city to city,” and that it is not quite correct, even as to them. The number of passengers reported to the stockholders as carried “betAveen Ncav York and Philadelphia,” as per report of January, 1844, for the year 1843, is 163,073 The number returned to the state treasurer for the year, is 165,256 Difference, 2,183 This difference betAveen the return and the report occur¬ red ill this Avay. The return to the stockholders Avas made according to the fiscal year, that is from December 1 st, 1842, to December 1st, 1843, Avhereas the retiuii to the state Ava.s for the civil year,from December 31st, 1842,to December 31st, 1843; and in December, 1843, on the Camden and Amboy route, 82 more passengers Avere carried than in December. 1842; and on the upper route, in December, 1843, 2,174s more passengers Avere carried than in December, 1842, which together make the exact difference of 2,183. The number of passengers returned to the state for transit duty for the year 1844, is 200,84U. The number reported to the stockholders, as having been 5D carried “from city to city,” as given in the report made Fe¬ bruary, 1845, for the year 1844, is 200,840J. According to our investigation, table 1, this amount in¬ cludes all dutiable passengers carried on the roads of the companies in 1844, and it is therefore evident that the report to the stockholders is in error, in calling them passengers car¬ ried from “city to city.” We must look to the eight years report, made in 1848, to ascertain the number of passengers carried from “city to city” in 1844 and the subsequent years. We remark, in addition, that the number of passengers called “through passengers,” in the report made to the stockholders, January 12th, 1848, for the eight years previ¬ ous, does not agree with the number, also called “throitgh passengers,” in the report made in 1842, for 1840 and 1841'. It has been shown already, that the report of 1842 was wrong in calling all the passengers reported in it “through passengers.” In point of fact, that report was intended to exhibit the whole number of dutiable passengers that passed on the road in those two years, as our investigation shows. The facts show, to our satisfaction, that the table annexed to the eight years report was intended to be confined, solely and exclusively, to what are literally “throughpassengers’’; that the object in making that table, was to exhibit by it only those passengers who had passed over the whole length of the road, or from “city to city,” during the previous eight years. Our examination shows that the eight years report is very nearly correct with respect to the number of through passen¬ gers for the eight years previous. There are a few clerical errors in it, some of which will be pointed out presently. We carefully examined the books and papers upon which this eight years report is predicated, and we herewith ap¬ pend the result of our examination, in contrast with the re¬ port. 51 NuniVjtJf of Uiroug'il lasscngers reported in the 8 y’rs report. Number of Uirough pnssengc according to our investigation 1840, 153,1124 152,1134 1841, 153,8765 153,876 1842, • 140,725 141,725 1843, 138,027 138,027 1844, 168,541 166,744 1845, 188,8844 188,992 1846, 200,096 200,0965 1847. 222,921 222,012 1,366,1835 1,363,586 1,363,586 Dillerence, 2,5975 It thus appears that the eight years report exhibits 2597J more through passengers than we find by our investigation. We noticed several errors in the eight year's report, which help to make up this difference; for instance, 1000 too many are reported for 1840; then again, 1000 too few for 1842, 17674 too many for 1844,108 too few for 1845, and for 1847, 909 too many, from a manifest error in printing the report, as the addition shows. It is printed 222,921, it should be 222,012. With these corrections, the eight years report will be found very near the truth in showing, as it was intended to do, the whole number of “through passengers” carried over the road from 1840 to 1847, inclusive. That this number conflicts with previous reports, as shown in table 2, is owing to the causes more particularly referred to in the preceding remarks and explanations. TRANSPORTATION BUSINESS OVER THE RAILROAD. The transportation of merchandise over the railroad is conducted under the supeiintendence of Alfred Decker, at New York, William S. Freeman, at Philadelphia, and Ben¬ jamin Fish, at Trenton, the principal receiving and disburs¬ ing agents for the business, as before mentioned. The mode of conductmg it is very minutely described in the testimony of the above named gentlemen, and also in 52' that of William H. Gatzmer. We will give a brief general view of it. Ever since the raihoad' has been hi operation, the transportation of goods over it has been carried on in the name of the “ Union Transportation Line.” This line, or rather a transportation line by this name, was. originally owned- by Bavid Hill, at Philadelphia, George Abbe, at New Ybrkj and the above named Benjamin Fish,, at Trenton. They carried on business under the firm of “Hill, Fish-& Abbe.” This firm had been engaged in the transportation business between New York and Philadel¬ phia, by wagons, across the state of New Jersey, under the name of the Union Transportation Line, for several years, before the Camden and Amboy railroad was built. This line comnlBnced in.li824, and was still in operation when the rail¬ road was opened for use. By an arrangement between the . railroad company and the above named firm of Hill, Fish & Abbe, the whole transportation business on the railroad' was conducted by the said Union Transportation Line. The- railroad company received' a certain compensation for the- use of their 'works in this transportation business. This aiv. rangement continued until May 1, 1833. On the first day of May, 1'833, the railroad company bc-- came the proprietors of the Union Transportation Line,, and carried on the business themselves over the road, imtiK the first of January, 1835; During-this time they employed Hill, Fish & Abbe as transportation agents, and paid them a compensation of thirteen per, cent., on the net proceeds of, the business.. On the first day of January, 1835, the New Brunswick Steamboat and Canal Transportation Company, commonly called the- “Napoleon Company,” (on account, as we be¬ lieve, of a steamboat of that name formerly owned'by them,)' became the sole proprietors of the Union Transportation Line, and the- transportation business over the railroad was transferred to them. The New Brunswick company at once took charge of this , branch of business over the road; continued it, in the name of the Union Transportation Ljue, and: employed the said; Ifill, Fish. & Abfie, as., their agents, on coinB}iS5ion,,iij,the nia-. nagement of it, until the spring of 183G, at which time Hill and Ahhc withdrew, and ceased to have any connection with, or interest in the line. In March, 1836, the New Brunswick company commenced the management of the business themselves, by means of agents under salaries. Messrs. Freeman, Decker, and Fish, above named, were the agents then employed, and they have retained the same con¬ nection with the business to the present time. The arrangement, or agreement, between the railroad com¬ pany and the New Brunswick company was, that the latter company Avas to pay the railroad company seven dollars and sixty-four cents per ton for the transportation of freight be¬ tween New York and Philadelphia, being at the rate of eight cents per ton per mile, as the distance was then estimated be¬ tween the cities; that is, four dollars and eighty-eight cents for the railroad distance, and two dollars and seventy-six cents for the water carriage, making togetlier §7.64. For the transportation of way merchandise, the railroad compa¬ ny were to receive a toll of just one half of the above stated rates. The railroad company were to furnish all the necessary iacilitics, such as machinery, cars, fuel, engines, and firemen, and the New Brunswick company to be at all the other ex¬ penses attending the business. It would appear, by the evi¬ dence of William H. Gatzmer, the principa.1 agent of the rail¬ road company, that that company did not make the above arrangement with the Nevr Brunsv/ick company, for the purpose of giving them any undue advantage or preference, inasmuch as, he says, the individuals who had the control¬ ling interest in the New Brunswick company also had a proportionate interest, ccpially large, in tlic joint companies; but that the arrangement was made under the idea that the interests of the railroad company would be promoted by it. because by it the railroad company would receive from the New Brunswick company the full amount of tolls named in their charter for the transportation of goods over the road, with much diminished expense to themselves, and at the same time would be relieved from the liability of common carriers. Wo do not consider it within our province to express any ophv ion with respect to the policy, propriety, or legality of the anangement. It went into operation, and was continued until the 1st of April, 1846. The New Brunswick company, during the whole time, regularly paid the railroad company the firll amount of the above stated tolls. In addition to the tolls, wo will add in this place, (althougll perhaps not strictly rele¬ vant) that the New Brunswick company paid the railroad company in 1842, as appears by their books, the sum of twenty-four thousand two Inmdred dollars, for the use, by the New Brunswick company, of the steamboats Burlington and Trenton, owned by the railroad company, in the Dela¬ ware river, in the years 1841', 2. On the first of April, 1846, the above stated arrangement between the railroad company and the New Brunswick com¬ pany was dissolved or discontinued, and the latter company ceased to.have any thing to do with the transportation busi¬ ness over the railroad; and since that time the railroad com¬ pany have themselves carried on the whole transportation business across the road, under the old name of the Union Transportation Line. The name of Union Transportation Line was retamed, as William S. Freeman, one of the agents,, tells us in his testimony, “because it was an established line, and there was no just cause for changing it; and being a popular and well known designation, the name was re¬ tained, as a matter of convenience and policy.” We are not aware of any good reason why the old name of the line should not have been retained and used by the railroad company, nor do we believe tlrat the public can in any way be prejudiced by it. And then again, we can rea¬ dily appreciate the force of the argument in favour of it, founded upon convenience and policy. For some coarse through freight, and for a class of freight called winter freight, the amount received by the railroad company for tolls from the New Brunswick company was less tlian the rates before named. By winter freight, as ex¬ plained by the witnesses, is meant all freight formerly ship¬ ped by the agents of the canal barge lines, after the closing of the canal for the whiter, and transported over the railroad I'liitil the opening of the canal in the spring. 'VVe shall lind’ it necessary to make some further remarks, hereafter, re¬ specting the winter transportation, The following, is a brief renew of the mode of conduct¬ ing the transportation business, as detailed by the witnesses. First, the goods are delivered at the office of the principal agent at each end of the line-, and- are weighed on a scale;, the weights are entered on a slate, according to the marks and numbers of the packages. A memorandum is then giv¬ en at the scales to- the shipper; containing tire marks and. number of the package, to whom consigned, and by whom shipped; this memorandum is taken to the office, where a receipt is given for it, and the articles recorded on the entry book, and also entered on a way bill. The- entry book and way bill show the marks and numbers of the- packages,, weight of each entry, by whom shipped, and to rvlrom con¬ signed, the rate of freight, and the amount received, or to be received fos-freight, together with the charges advanced on- goods, if any. The goods and way bill are then forwarded to the other end of the line. The entry book of the forward¬ ing agent, before spoken of, operates as, and in effect is, a cliarge against the receiving agent at the other end of the line, of the amomit of the way bill so forwarded to him; and he is rec[uired, at the stated settlements, to account for the amount of freight appearing on the said way bill. The effect is, that each agent acts as a check upon the other. These way bills- are always carefully preserved, and may be referred to, in case the accoimts or returns of either of them are called in question. It appears to us that, from the manner in which this trans¬ portation business is conducted, there is no room for fraud to any extent, either as to receipts or tomiagc, except by collu¬ sion between the prmcipal agents; nor even then, without the privity of some of the subordinates. In justice to the present respectable agents of this busi¬ ness, we must add, that we have discovered nothing upon which to base the least suspicion of the kind, with respect to them. Way freight is received, by the way agents of the trails- portafion lines in much the same manner as at the principal' offices, with the exception, that it is-not always weighed at the point at which it is received. Formerly this was more usual than at present. Several of the way stations on the road have lately been supplied with scales. Articles, the general weight of which is known, are not weighed. A way bill of such articles as are received at way stations is made, out, and delivered to the conductor of the transporta¬ tion train carrying the goods, and is handed by him to the agent who receives the goods at the place of delivery. 'When tltat office is at the- end of the line, the several articles of way freight are entered at large on the principal way bill, and the weight annexed, with the amount of charges for freight. When way freight is. carried between intermediate points or stations, or received and delivered at intermediate points on the line, the agent at the place of delivery gene¬ rally collects the freight money, and hands it over, with the way bill for it, to Benjamin Fish, who, at some subsequent time, returns both to the principal office at the- end of the line, where they are entered in some through way bill of that month, generally at the end of the mouth. The returns of this kind, now made by Mr. Fish, are more specific than formerly, as to items, The goods are carried in the summer season by steamboat between Philadelphia and Bordentown, and by railroad between Bordentown and Amboy; in the winter, by railroad from Camden to Amboy, and between Amboy and New York by steamboat. Upon the receipt of goods transported over the railroad, freight bills are made out, which contain a list of the articles, and the amount of the freight and charges to be collected. These bills are then examined by another person, and enter¬ ed in a book called a journal, the total footing of which cor¬ responds witlr the amount charged to-the general receiving agent. In case of loss of freight money, the amount is charged in- the expense account. The tonnage, however, is returned to. the state for transit duty. Certain goods are transported, daily over the railroad between New York and Philadelphia, for the express lines of Adams & Co., Livings- jQtL &. Co.j, and Einsley & Co., in crates, exclusivelv asv- 57 signed to them, for which they severally pay a certain sum by contract. The amount of tonnage thus carried for these express lines is ascertained, and entered weeldy in the oflice of the prmcipal transportation agent at Philadelphia. The Aveight of the goods carried for these- e-xpress lines, until Avithin about a year past, Avas ascertained by estimate, as hereafter- explained. The books of the several agencies shoAV the amount and land of freight carried over the road each day, as entered in the regular Avay bill, the amount of money received for the transportation, and the disbursements for expenses incident to the business. Shortly after the close of each month, the several agents, Avith their-books and vouchers, meet the ex¬ ecutive committee of the joint companies at BordentoAvn, for the pmpose of settling and adjusting the business of the previous mouth. The books, accounts, and vouchers of the agents are then examined, and, if foimd correct, a statement or abstract of the business of the month is made out. This abstract is then sent to the oflice of Mr. Gatzmer, the gene¬ ral railroad agent in Philadelphia, Avho- enters the contents of it in his monthly statement of receipts and disbursements, which he afteiuvards foiuvards to the principal agent at Bor- dentoAvn, Avho then enters the several items contained in it, under their proper head's, in- the general abstract book. We have before said that this monthly statement shoAvs the Avhole amoimt of the through, Avay, and dutiable Avay merchandise, carried over the roads of the company during the preceding month. The merchandise contained in it., Avhich is carried over the branch road, is returned to Mr. Gatzmer by Benjamin Fish, the- agent at Trenton, Avithout being entered on any of the regular Avay bills. The tonnage of the Avinter freight, and the net balances of money due the railroad company for it, after payment of expenses, is usually i^turned to, Mr. Gatzmei'j by- the regular transportation agents, at the end of the- season, after some monthly settle¬ ment at BordentoAvn, and entered' by- him> for the month in ■which the settlement is made. We have now explained hoAv Mr. Gatzmer is enabled, in his monthly statements, to shoAv the tvliole, amoimt of iner.chtiniljge, that passes oyer, the road. i 58’ There has been no change or alteration since January Isf, 1835, in the manner of making the settlements for the trans¬ portation business, and carrying the results into the general abstract book. Prior to April 1st, 1846, the New Brunswick company paid, after each monthly settlement, to Mr. Gatzmer the amount due the railroad company for toll for transportation, at the rate herein before mentioned. After the railroad company began to carry on the trans¬ portation business over the road themselves, the accounts for a time were kept, for convenience, in the same manner as they were before. That was the case from April 1st, 1846, to the close of the year 1847. The transportation accoiuit was credited with the same- amount that was paid, prior to. that time, by the New Bruns¬ wick company for tolls, while they conducted the business, at the rate of S7.64 per ton. And the residue of the gross receipts, after deducting all expenses incident to the business, paid by the transportation agents, was credited to an ac¬ count, called the “insurance account.” This formed a sur¬ plus fund, arising from the transportation business, after ac- countuig for the g7.64 per ton and all the expenses, and was suffered to- remain as a reserve fund, so long as pru¬ dence seemed to require, to meet any claims or demands for loss or damage m the transportation business. At the close of the year 1847, this reserve fund amounted to the sum of ^32,021.39. It was then paid over to the treasurer of the railroad company, and accounted for by him with the other receipts. This insurance account was closed at that time, the reduced rates or charges for freight re¬ ceived after that time leaving no surplus-moneys to be carried to such account. Since the decision of the supreme court of this state, in the case of Briggs against the Camden and Amboy Railroad and Transportation Company, at January term, 1848, or shortly thereafter, the rates of freight for transportation on the raihoad have been reduced. The former rates were charged in the way bills for a time; but only the rates by that judgment declared to be legal were collected, as a gene- jal thing. Afterwards the charges were made to conform to that decision, and such is the practice at this time. From April 1st, 1848, to March, 1849, an account was kept, called “deferred claims,” which show^ the difference in the amount charged on the way bills, and eight cents per ton per mile, collected by the companies. This account still stands open, on the books of the trans¬ portation agents, against the persons whose goods were transported. One of the agents thinks it would amount, during that time, to g30,000 for the Philadelphia end of the lino. Since the decision above named, the companies have charged for transportation on the railroad, at the rate of eight cents per ton per mile, or seven dollars and twenty cents from city to city, rating the distance at ninety miles. They have also arranged a tariff of tolls, at the same rate, for intennediatc points; some articles, such as sheetings, brown drillings, flour, iron, &c., are carried at a less rate than eight cents per ton per mile. By the general abstract book, the treasurer of the railroad company can ascertain, at the end of each cpiarter, the amount of merchandise transported over the road subject to transit duty, the through, the way, and the dutiable rvay, being en¬ tered in it for each month, under separate heads. The footing up of each quarter shows the amount of each kind. The second charge in the “pamphlet” is, “that the cpian- tity of freight carried on the railroad has been far larger than has been reported for transit duty.” To ascertain the facts in reference to this charge, we pur¬ sued a plan of investigation similar to that before detailed with respect to the passenger business, that is, by examining minutely and carefully the original way bills, vouchers, and books of the transportation lines, for each trip, for various periods of time, running through the whole course of busi¬ ness from 1833 to 1848, inclusive. All the original way bills, books, and papers of the New Brunswick company con¬ nected with the transportation business, while they conducted' it, were laid before us and examined, after being verified by the oaths of the different' agents and clerks. Wo made our '60 wn calculations and statements, and traced the variotiS charges and entries, based upon the original way bills, ■through the several books and statements, up to the general abstract book. This examination was necessarily very tedi¬ ous and laborious, in consequence of the detailed manner of making out the way bills and the extent of the business. This will surprise no one, when it is understood that a single way bill for one train sometimes filled from fifteen to twenty sheets of paper. Our inspection and caloulations of way bills, for different periods of time, were very minute and particular; and to as¬ certain the facts fully, with respect to way freight especially, we found it necessary to Canvass all the way bills for the three years preceding 1849. We present the result with great confidence. On comparison we foimd our statements and calculations to agree, both as to tonnage and money, with the corres¬ ponding entries and charges in the books, with few and very trivial exceptions; so few and immaterial, indeed, that we did not consider them worthy of attention. In some instances our calculations of tonnage exceeded, and in some fell below the entries in the books, by a few tons, or fraction of a ton, ■in no case exceedmg seven tons. But in general they agreed. We found the money receipts always correctly entered and accoimted for. The result Was, We were satisfied that the books could be relied upon as authentic records of the trans¬ portation business over the railroad,-with the exceptions, hereafter explained, of the deficiency in the return of winter freight and merchandise carried by the express lines. Prior to the resolution of 1842, no way merchandise was returned for transit duty. By a supplemental return, made in 1843, all the way merchandise carried over the road pre¬ vious to that time, and rendered dutiable by the resolution, was returned, and the transit duty paid. After that time, the way merchandise subject to transit duty was regularly en¬ tered in the books, and included in the quarterly returns. We have prepared a table, hereunto aimexed, marked No. 3, exhibiting the whole transportation business over the rail¬ road from December 17th, 1832, to December 31st, 1848. That table shows the result of our examination of the facts bearing on the second charge, by which it appears from the books of the companies, according' to our investigation, that from December 17th, 1S32, to December 31st, 1848, 2SO,9CG tons 18 cwt. 3 qrs. 21 lbs. of through freight were carried over the railroad, and 24,386 tons, 18 cwt. 1 qr. 27 lbs. of dutiable way freight, making together 305,353 tons, 17 cwt. 1 qr. 20 lbs. There were returned to the state for transit du¬ ty, during the same period of time, 303,788 tons, 1 cwt. 1 qr. 27 lbs. of through and way freight together, leaving not re¬ turned, on the 31.st December, 1848, 1565 tons, 15 cwt. 3 qrs. 21 lbs. Ill addition, we find that 390 tons of merchandise, carried across the state in the express chests of Adams & Co. and Livingston & Co., have not been returned; and further, that there is a deficiency in the return of what is called win¬ ter transportation over the railroad, according to our estimate and calculations, of 8635 tons, 19 cwt. 1 qr. 19 lbs., making altogether not returned up to December 31st, 1848, 10,591 tons, 15 cwt. 1 qr. 12 lbs. It will be seen that wc have, at the foot of our table, added the omitted return of the expre.ss chests and the defective return of winter transportation. The several items included in the total amount of deficient re¬ turns, as shown by the table, will require .some further no¬ tice and explanalioii. 63 Deiicieiicy in return brought forward; Add through merchandise carried by the express chest of Adams &' Co., from Oc¬ tober 1st, IS-IG, to December 31st, IS IS, Do. do. merchandise carried by express chest of Livingston & Co., from March 1st, lS-17, to December 31st, IS-IS, Do. do. ill return for winter transportation, from 1S41-2 to lS-lS-9, both inclu¬ sive, Whole amount not returned December 31.st, IS-IS, Note. —The whole amount of way freight carried in the years 1833 and -1, does tiol appear iti the table. The dutia¬ ble way freight carried iti those years was ascertttiiied when the supplcmciita! rctuni of lS-13 was made. Since that time •sotne of the way bills for those years have been mislaid, and we could not therefore ascertain the whole amoiuit of way freight not dutiable for those years. The foregoing table will bo readily comprehended, frotii the caption to it, and the headings of the several cohttnns. It will be seen that by adding, for each year, the dttlitiblc way merchandise returned in 1813, under the resoltnion of 1812, to the amoutit of merchandise rclurtied iti each year, in the regular quarterly returns, from 1832 to 1842, inclusive, the aggregate amount corresponds with the whole amount of through and way merchandise liable to transit duty for the same period of time, as ascertained by us, and shown in the table. The table shows that the amount transported and liable to transit duty for the years 1843, 4, and 5, exceeds the amount returned to the state for those years, by 120 tons, 17 cwt. 3 qrs. 20 lbs. of through freight in 1843, which by some inadver-. tence was omitted in the regular returns for the year. This item has since been returned in a supplement to tlie- quarterly return of July, 1849, S,i;3o 19 1 19 10,591 15 1 12 WAY MERCHANDISE. The freight liable to transit duty, carried over the road in the years 1846, 7, and 8, exceeds the amount returned for those years, by 1444 tons and a fraction, as appears by the table. This deficiency is all way freight, and arose in this way: we noticed in our examination of the transportation way bills, in 1846, that way freight, carried over the road to South Amboy, from certain points and places on the rail¬ road between Camden and Bordentown, and also some from Princeton, by the way of Bordentown, to Amboy, had not been returned for transit duty. Previous to that year such freight had been returned. In order to ascertain the whole amoimt thus omitted, we were compelled, as already stated, to examine all the way bills for the years 1846, 7, and 8. Ill 1846, we found it amounted to 375 tons, in 1847, to 438 tons, and in 1848, to 631 tons, altogether for the three years 1444 tons and a fraction. We considered this way freight as fairly chargeable with transit duty, and have therefore in¬ cluded it m our calculations and table. The importance of this subject demands a more extended notice. By reference to the resolution of March 10th, 1842, alrea¬ dy referred to, it will appear that the companies are required to pay transit duty upon all passengers, and upon all goods, wares, and merchandise theretofore transported from Cam¬ den, Burlington, Bordentown, the Trenton Delaware bridge, the city of Trenton, or any point or place on the Delaware river, to South Amboy, the city of New Brunswick, or any other point or place on the Raritan river or bay; and from South Amboy, the city of New Brimswick, or any other point or place on the Raritan river or bay, to the city of Trenton, the Trenton Delaware bridge, Bordentown, Bur¬ lington, Camden, or any other pomt or place on the Dela¬ ware river. It appears by the books and papers, and the testimony of some of the agents, that the companies have construed the above resolution, so far as passengers are concerned, to in¬ clude as dutiable all passengers who pass over their road from Bordentown to Amboy, and from Amboy to Borden- 63 to^v^l, without regard to the point from whence they started' or the place to which they were going. The same construc¬ tion was formerly given to the resolution with respect to merchandise, and acted upon’up to 1846, and the merchan¬ dise thus transported was returned as dutiable. About that time a change was made with regard to way freight, taken up at certain points between Camden and Bordcntowii, and such freight has not since then been returned for transit duty. The 1444 tons not returned, as above stated, is made up of such freight, including some sent from Princeton, by way of Bordentown, to South Amboy. Mr. Decker, in his examination on this subject, says: “A discussion arose at a monthly meeting for settlement, three or four years ago, about the true construction of the transir duty resolution of the legislature, passed in 1842.; and the conclusion was, that wo .should in future return only for those places and points named in the resolution, that is to say, from Camden, Burlington, Bordentown, the city of Trenton, and the Trenton Delaware bridge. It was sup¬ posed that the points on the river were named in the act, for the purpose of embracing all goods that might bo landed at those points from the river, whether from Philadelphia, Eas¬ ton, or elsewhere. Our returns have always embraced goods starting on our railroad from these points, whether coming from the river or not. and also all goods destined for these points from South Amboy.” Mr. Freeman, in his testimony, in speaking of their practice ofrctuniing way freight, says: “Prior to some two or three years ago, Mr. Decker and my¬ self construed.thc way freight subject to transit duty, to in¬ clude all points on the railroad below Bordentown, trans¬ ported to or from Anrboy. AVe were told that this was wrong, and we were directed to rctum freight only from the places or points named in the resolution. The reason given- was, that our previous mode was irot in accordance with the resolution of the legislature.” It appears that the companies do not consider way freight liable to transit duty, under the resolution of 1842, unless it' is taken up or delivered at one of the points named in the resolution, although it passes the length of the road betwceiii B'ordentown and South Amboy; and since 1846 no such way freight has been returned. We differ with the company in this construction of the resolution, and consider it our duty to add the said 1444 tons to our table, as not retm’ned. This freight was taken up at different points- on the roadi between Bordentown and Camden, but not at any one of the places named in the resolution of 1842, and it was all carried by way of Bordentown to South Amboy; and as Borden- towii is one of the places named in the resolution from whiclr fi'eight is dutiable, we considered that this freight, both within the rvords and spirit of the resolution, should have been re¬ turned. We have thought it proper to present this matter distinctly to the notice ol the legislature, so that if we are wrong in. our construction of the resolution, the error may be corrected by the proper authority. Although we have felt it to be our duty to hold the joint companies to a strict accountability, we should regret to be the cause of injustice towards them. The way transportation business over the railroad is large¬ ly on the increase, and although the deficiency in the return is, as yet, small in amount, it may, and no doubt will in a few years become a matter of very considerable unportauce. It is well worthy of notice that the way freight, since 1835, has. increased in a much greater ratio, than tlie through, transportation; for example, it will appear by the table, that 1835, the way is 1,451 tons, the through 10,811 tons.. 1840, 3,356: “ “ n,42S “ 1845, “■ 7,489 “ “ 25,372 “• 1846, “ 13,198 “ “ 26,628 " 1847, “ 16,892 “ “ 36,707 “ 1848) “ 15,095 “ “ 33,273 “ showing, that in 1885. the way, compared with the through-,. is as about one to seven,, and that in 1846,7,8, is nearly one half as much as the. through freight. We also observed!, in going over the way bills; tliat in the year 1847, for several months, the way freight actually ex¬ ceeded the through. It is evident, from the above facts, that if tlie same ratio, of increase should continue, the time is noft far distant wlien tlie way transportation will exceed the through in amount. The above comparisons also afford evidence that, for the support of these great works, the companies will not be obliged to rely entirely upon foreign business. From year to year a local business is gradually but stea¬ dily increasing, as additional facilities arc afforded and en¬ couragement held out, to the great benefit of the citizens of the state, as well as of the companies. The transportation of peaches forms a prominent item in the way freight, and, as public attention has been directed to it, some notice of it may be proper. It appears, by the tes¬ timony of Alfred Decker, that the companies have run a train between South Amboy and Camden, during the sum¬ mer season, for six or eight years past, called the way freight line, for the purpose of carrying the produce of the state of New Jersey to market. This train, he informed us, was generally able to do all the business that offered, although there have been some instances to the contrary. A full ac¬ count of the peacli transportation will be foimd in the testi¬ mony of Gen. William Cook. He says, that during the time of peach marketing, in ISIti and 7, a number of trains rvero recpiired in addition to the ordinary transportation lines. jVnd he further informs us, in his testimony, why, and under what circumstances, cars loaded with peaches were in some cases attached to the morning passenger trains. We think it unnecessary to extend this report by a detail of the facts and circumstances. We place a high estimate upon the value and importance of this branch of our domes¬ tic trade, and are satisfied that all proper facilities given to it, will add greatly to the wealth of the state and the reve¬ nues of the joint companies. A regular tariff of rates, according to distance, has been lately established by the companies for this kind of trans¬ portation. 68 EXPitESS CHESTS. The amount of merchandise carried between Philadelphia and New York, in the express chests of Adams & Co. and Livingston & Co., is not specifically entered in the books of the company. The quantity which each chest is authorized to carry, is limited and determined by express contracts, which were laid before us. We took the maximum amount named in the contracts in our calculation of the number of tons of dur tiable merchandise carried by them, and which had not been returned to the state treasurer. The quantity by each ex¬ press line appears in the additions made at the foot of the foregoing table. It must be remembered that these “express chests” are not the same as the “express crates,” hereafter more par¬ ticularly spoken of; they are chests belonging to the above named express lines, and carried between the cities, by the trams that are run over the branch road, in connection with the Philadelphia and Trenton, and New Jersey railroad, and before adverted to in our remarks relative to the passenger WINTER TRANSPORTATION. This winter transportation is confined to goods shipped by .1. & N. Briggs from New York, and William M. Baird Si, Co., and their predecessors, from Philadelphia, and carried over the railroad in the winter season, to accommodate the- customers of the canal-line of barges, and to keep up the Inisiuess of those lines while the canal is closed. These goods are generally carried at lower rates of freight than is charged on goods carried in the regular railroad lines, being, articles that usually go through the canal, when it is open. This kind of transportation over the railroad commenced in the winter of 1841 and 2, and has been continued ever, .since, during the suspension of canal navigation in winter. The rates of toll paid by the New Brunswick company (the proprietors of the canal barge lines) to the railroad conir- 69 pany, on this winter transportation, has varied from $2.24 to $2.75 per ton. The goods transported hy this winter line have not usually been weighed by the agents, either upon the receipt or de¬ livery. In order to ascertain the number of tons subject to transit duty, the following method has been adopted and pursued: one hundred pounds have been returned for transit duty for every twenty-live cents charged in the way bill for freight. This rate was ascertained, as stated by the agents, by weighing two cargoes, one of which made 27a cents, and the other 26 cents, for freight money for every hundred pounds. Twenty-five cents was then fixed upon by them, as the estimate of one hundred pounds of merchandise, and ac¬ cording to that standard it has been returned, except for the winter of 1841 and 1842, when it was returned at the rate of twenty cents per one hundred pounds. Upon investigating this branch of the transportation busi¬ ness, we ascertained that twenty-five cents per hundred pounds was too high a rate for estimating this freight. We then recpiested the companies to cause a re-estiniation to be made by some of the clerks of the transportation lines, who were familiar with the matter. This was accordingly done by J. G. Sweet, Samuel Thompson, and W. S. Freeman, all of them connected with the transportation business. And, as the result of this re-estimation, they have presented to us the following series of estimates and tables from 1841-2 to 1S48-9. wluterof No. iKll’gCS. Amount of freight of barges. No. of pounds of barges estimated. Rate of 100 lb. for each 1841-12 5 $1,560 13 754,070 20i 1842-43 I 10 2,096 'J4 1,083,043 lOi 1843-44 ; 10 ! 2,919 93 1,387,831 21i 1844-45 ' 9 2,459 15 1,099,688 1845-46 ' 2,749 54 ! 1,172,845 sf 1846-47 1 2,171 83 1 989,440 21i 1847-48 8 2,199 06 815,161 263 1848-49 1 7 1,637 56 741,094 22 $17,794 11 1 8,048,972 70 1845- 40^ 1846- 47 1848-49 $2,272 15 1,995 05 2,800 00 2,483 95 By our direction, the above estimates were made iii this manner: the actual weight of the goods contained in every fifth manifest, both westward and eastward, for each winter season, was estimated, and the rate charged per one hmidred pounds for transportation ascertained in that way, in order to arrive at a fair average of freight charged for the season. We are satisfied that the ivork was done with truth and fidelity. It will appear, by the foregoing tables, that the rate charged for freight, per hundred pounds, is much less than ■the rate at which the merchandise has been returned for transit duty. The following table is made out for the purpose of ascer¬ taining, according to the rate per, hundred pounds, shown by the said estimates, the deficiency in the returns made to the state for this.kind of merchandise. Each season is calcula¬ ted according to the rates ascertained by the foregoing tables. For two of the seasons, some of the manifests for the east¬ ward business were not found. We have taken the average rates, next to them, to comr- It appears, by the above table, that there is a deficiency in the return of this winter transportation of 8635 tons, 19 cwt. 1 qr, and 19 lbs. which, as will be seen, is added at the foot of table 3. In this instance our investigation has run into the year 1849. This was unavoidable. The winter transportation, being the work of a season, necessarily in¬ cludes a portion of two civil years. To complete the investi¬ gation for 1S4S, we were therefore compelled, in this case, to include a part of 1849. We understand from the ofiicers of the companies, that the practice now is to weigh this win¬ ter freight. This will prevent any future difliculty with re¬ spect to the amount of tonnage to be returned to the state. EXME.SS CRATE TUAXSTOUTATION. Wi; have already stated that the express lines of Adams & Co., Livingston & Co., and Kinsley and Co. transport goods over the railroad. Th’o arrangement with these express lines is as follows: Each line is furnished, daily, with a certain number of c.rates. The proprietors of the several lines carry in them whatever they choose, except gold and silver, and pay to the railroad company two-thirds of their charges for freight, as manifested by their way bills. It is stipulated that the amount paid shall not he less than twelve dollars and fifty cents per crate. The line of Adams & Co. was commenced in 1842, Liv- 72 ingston and Co. started theirs in 1844, and Kinsley & Co- February 21st, 1848. The crates go with the regular trans¬ portation trains between Bordentown and South Amboy. For the year 1849, these crates have been regularly weigh¬ ed on a large platform scale, at Philadelphia, by Mr. Free¬ man, the agent of the railroad company, and the actual weight of the merchandise returned for transit duty in the monthly statements before explained. But previous to 1849, the weight of the merchandise so transported was ascertained by estimating one hundred pounds of merchandise for every one dollar and fifty cents of freight charged by the several lines, or, which is the same thing, for every dollar received by the railroad company. Mr. Decker, in his testimony, says: “ I think this method of ascertaining the weight of goods carried by the express crates was fair at the commencement of the business. It was then almost exclusively a package business. Since then the character of the business has materially changed; they no^v carry heavy goods at lower rates than formerly. I think we did not return as much as they carried prior to this year, aris¬ ing from the fact that their business and prices changed, and we continued to make our returns in the same way. The present mode of weighing the crates must be correct.” It appears that, as the number of these express lines in¬ creased, they carried heavier goods at cheaper rates, in op¬ position to one another. Something more than a year ago Mr. Decker made an average of rates charged by these lines, and ascertained that the charges made by Adams & Co. ave¬ raged about ninety cents per hundred pounds, and those made by the others somewhat less. At that time Mr. Freeman weighed the crates, and Mr. Decker ascertained the aver¬ age by comparing the weights with the amount of money charged by the express lines. The present practice of actually weighing all the crates, was adopted by reason of the belief that the former mode of estimating the weight was uncertain. There had been no facilities for weighing it previously. Two or three years pre¬ vious to 1849, the number of express crates going over the 73 toad per week, full and empty, was about fifty-four; the pre¬ sent number averages about ninety-six per week. Mr. Decker could not point out any mode by which the true amount of tonnage could be ascertained for the time when, as he supposes, the estimate was too small. It seems, from the evidence, that Mr. Freeman did not weigh the crates, as above stated, with reference to the amount of tonnage carried, but simply to ascertain thereby the rates of freight charged by the express lines. The induce¬ ment to do so, was an apprehension that the express lines, by reason of the competition amongst them, might seriously interfere with the regular transportation busmess of the rail¬ road company; although it turned out, as the witness says, not to be so, to the extent that was suspected. It appears to have been the act of the agents alone; the question of tran¬ sit duties had nothing to do with it. Mr. Decker says it was done on his suggestion, without any conversation with, or directions from the executive com¬ mittee. We also learn from him that the attention of the agents was di'awn to the subject of transit duties, ui connection with these express lines, by the charges brought against the compa¬ nies ; and that the present system of weighing the crates was adopted for the purpose of ascertaining the weight with cer¬ tainty. He estimates a full crate at three thousand pounds of such goods as these lines usually carry. It is a fair presumption, from the evidence, that prior to 1849, the whole amount of tonnage carried by these express crates has not been returned for transit duty. We have not looked into this matter for the purpose of ascertaining the extent of this probable deficiency, but be¬ cause it forms an important part of the transportation busi¬ ness over the railroad. We have no means of determining the actual amount of freight carried by these lines prior to 1849. If the present system of weighing the crates is ad¬ hered to, as it should be, there will be no difficulty in ascer¬ taining and returning the correct amount of freight carried by them for transit duty. 74 DISCREPANCIES BETWEEN RETURNS OP FREIGHT TO THE STATE AND REPORTS TO THE STOCKHOLDERS. We have prepared the following table, No. 4, in order to present at one view the returns made in each year to the state of merchandise for transit duty, in contrast with the re¬ ports made by the directors, at different times, to the stock¬ holders of the amount of such transportation. We do this because alleged discrepancies between those returns and reports are pointed out in the “pamphlet,” in support of the second charge, respecting railroad transporta¬ tion. And again, because a proper understanding of the facts relating to the seventh charge, which is immediately connected with this branch of the investigation, required such a table. Tlie seventh charge is, “that the quantity of freight pass¬ ing on the railroad has greatly exceeded that reported to the stockholders.” It became necessary, therefore, to ascertain, if possible, whether the several reports, above referred to, were correct or not, and why they varied from each other. Some time was devoted to the examination of this matter, the result of which will appear by the remarks immediately following the table. 76 It appears, by the above table, that the number of tons of merchandise returned to the state for transit duty, from 1832-3 to 1839, inclusive, corresponds so neariy 'with the re¬ port made by the directors to the stockholders in 1840, for the same period of time, that no comment or explanation is ne¬ cessary. The difference of ten tons, in 1839, we believe to be a clerical error. Tire table also shows that the retiu’ii to the state for the year 1840, the report of 1842, and the report of 1848, for the same year 1840, all disagree in amount. These discre¬ pancies may be readily explained. It must be recollected that the returns to the state are always made for the civil year. The report of 1842, for 1840, we found was for the for¬ mer fiscal year of the companies, that is, from December 1st, 1839, to December 1st, 1840. In December 1840, 217 tons, IScwt. 1 qr. 26 lbs. more were carried than in December 1839. This difference, added to the report of 1842, for the year 1840, will make it correspond, within a few poimds, with the retiun to the state. The report of 1848, which was adapted to the civil year, differs from the return to the state for 1840, to the amount of 100 tons. This is an error in addition. Thus both of those reports do in reality agree with each other, and with the return to the state. The difference between the return to the state, for the year 1841, and the report of 1842, for the same year, is also owing to the fact, that the one is for the civil, and the other for the fiscal year. The report of 1848, for 1841, agrees with the return to the state. Tile return to the state, and the report of 1843 to the stockholders for 1842, it will be seen, agree; and they both include 25 tons, 18 cwt. 3 qrs. 13 lbs. of way merchandise in the last quarter of 1842, which was not included in the supplemental retmn of way merchandise under the resolu¬ tion of 1842, before spoken of. Tons, cwt. qrs. lbs. In the report of 1848, the through mer¬ chandise for 1842 is put down at 13,209 17 0 19. If we add to that this dutiable way freight for 1842, not included in the said supplemental return, of 25 18 3 13 W6 have 13,226 16 0 4 precisely one thousand tons less than were returned to the state, or reported to the stockholders, in the report of 1843. The way freight for 1842, reported to the stockholders in the report of 1848, corresponds exactly with the amount ascer¬ tained by us, as appears in table 3. This difference of 1000 tons of through merchandise is an error, discovered at once upon comparing the general statement hook (which was used as the basis of the report of 1848) with the general abstract book. This general statement book was made up from the abstract book, and this deficiency of 1000 tons appears at once by comparing the books together. The amount of the statement book is 1000 tons less than in the abstract book. The books of the company show that the return made to the state is correct, and the freight money charged in the books requires that number of tons. The variance between the return and the reports for 1843 is considerable, and worthy of notice. By table 3, it will be seen that in the year 1843, 20,123 tons, 14 cwt. 3 qrs. 21 lbs. of through, and 1024 tons, 5 cwt. 0 qr. 11 lbs. of dutia¬ ble way freight were transported over the railroad. This is the result of careful examination of the books and papers of the company, and we feel satisfied of its truth and correct¬ ness. Receipts for transportation, to an amount correspond¬ ing with this amount of tonnage, according to the rates then charged, are entered and accounted for in the books. In .the report of 1844, made for 1843, (as per table above) the amount of merchandise “carried between New York and Philadelphia” in 1843, is put down at 25,508 tons. We can¬ not tell how this report was made up, nor upon what data it is founded. It certainly is not sustained by the books, nor by the facts, as we ascertained them. The whole amount of freight of every kind carried over the road in 1843, is 24,576 tons, 1 cwt. 0 qr. 20 lbs., accord¬ ing to our investigation, almost 1000 tons less than reported in 1844, as carried between New York and Philadelphia. 78 That the report of 1844 is erroneous, is perfectly manifest. How the error originated, we cannot tell; the fair presump¬ tion is, that it rests with the clerk who copied from the books the materials of the report. So large an additional amount of through freight could not have been carried in that year, nor in any year, without some existing evidence of the fact: no such evidence can be found. The transport¬ ation agents testified that the original way bills and books examined by us exhibited the whole business from year to year. The report of 1844 is directly at variance with those records. In the report of 1848, the “through merchandise” for 1843, is put down at 19,511 tons, 17 cwt. 0 qr. 2 lbs., and the way at 4152 tons, 6 cwt. 0 qr. 27 lbs.;, that is to say, the way merchandise just 100 tons more, and the tlnough 611 tons, 17 cwt. 3 qrs. 19 lbs. less, than we find to be correct. The through merchandise for 1843, as reported by us, in¬ cludes 120 tons, 17 cwt. 3 qrs. 20 lbs., not contained in the regular returns to the state for 1843, nor carried urto the gene¬ ral statement book, and therefore not included in the report of 1848. Again, we found that this report was less, by 500 tons of through freight, for 1843, than appeared in the gene¬ ral statement and abstract books; and further, the through merchandise for March, 1843, entered in abstract book at 1267 tons, 16 cwt. 3 qrs. 13 lbs., was copied into the state¬ ment book as 1276 tons, 16 cwt. 3 qrs. 13 lbs. With these corrections, the report of 1848 for 1843, of “through mer¬ chandise" will be found to correspond with the amount as¬ certained by us. The difierence of 100 tons, in the way freight above mentioned, is probably an error in addition or of the printer. Tons, cwt. qrs. lbs. In the report of 1848 for 1844, the “through merchandise” is put down at 24,902 11 2 15 If we add to this the dutiable way for that year, as appears by table 3, 772 12 1 20 We have 25,675 4 0 7 agreeing with the amount returned to the state within three tons. In the same report, the whole of the way freight for the year 1844 is put down 896 tons, 1 cwt. 1 qr. 7 lbs. more than appears to have been carried. This is an error in the report of 1848, as appears by the books. By the same report, for the year 1845, the “through” is given at 25,372 16 1 15 Add dutiable way, 2,136 6 0 24 And we have within a fraction of the return. 27,509 2 2 11 By the report, the way freight for 1845 is stated at 43 tons, 19 cwt. 2 qrs. 24 lbs. more than was carried. Tons, cwt. qi-s. lbs. For the year 1846, the same report gives the “throughmerchandise” at 26,628 10 1 18 Add dutiable way returned. 3,284 2 3 4 And we have corresponding with the return for the year. For the year 1847, the report gives the 29,912 13 0 12 Tons, cwt. qrs. lbs. “throughmerchandise” at 36,707 4 3 26 Add dutiable way returned for the year. 6,637 14 3 14 Whole amount returned, 43,334 19 3 12 CANAL. Officers of the Delaware and Raritan Canal Company. The officers of the Delaware and Raritan Canal Company are Robert F. Stockton, President, John R. Thomson, Secretary, James Neilson, Treasurer, and Ashbel Welch, Engineer. The Company also has toll collectors at Lambertville, Trenton, Princeton, Kingston, Rocky Hill and Bound Brook, Princeton being the principal office. They also have officers at the termi¬ nations of the Canal at Bordenfown and New Brunswick, who may be called harbor-masters. There were formerly collectors stationed at Bordentown and New Brunswick, but they were discontinued in 1835. Method of transacting Business on the Delaware and Raritan Canal. The method of transacting the business of transporting passen¬ gers and merchandize on the Canal, and of receiving and ac¬ counting for the tolls, is as follows: Previous to the opening of the navigation on the Canal, in 1834, the Company established a tariff or list of rates of tolls, and other charges, to be paid for articles transported on the Canal, 2 and a code of regulations to be observed by the masters of ves¬ sels navigating the same, a printed copy of which was furnished to each collector, and wliich undergo revision from time to time by the Board of Directors. When a boat or vessel arrived at one of the entrances of the Canal, prior to the 6th of July, 1846, she was permitted to enter the Canal, and pass to the collector’s office at Princeton, w’ilhout any registry being made of her entrance, but could not pass out of the Canal, unless she produced and delivered to the lock- keeper, at the outlet lock, a clearance from some collector. Since July 6th, 1846, when a vessel enters the Canal at Borden- town, the harbor-master at that place examines the vessel, with her cargo, and her manifest, and ascertains her tonnage or capa¬ city, and the number of tons and kind of cargo she has on board, by a rough estimate, and registers in a book kept by him, the date of her entrance, name of vessel and master, tonnage, cargo in general terms, places of departure and destination; the vessel may then pass to the collector’s office, at Princeton, where the master is required by the law of the state before mentioned, to produce to the collector a true manifest, or bill of lading, of his cargo; the correctness of which is enforced by the provisions of said law. The collector then examines the manifest, vessel and cargo, and if he thinks it advisable, lakes the oath or affirmation of the master to the correctness of the manifest, and ascertains from his list of tolls, the tolls and other charges on the cargo, and on the passengers, if any, receives the same, and gives the master a clearance for his vessel, showing the weight and kind of cargo, and the amount of tolls and charges received thereon, which, when delivered to the harbor-master or lock-tender, at the terminations of the Canal, authorizes him to permit the vessel to leave the Canal: the harbor-master at Bordentown making the same kind of registry of the departure of the vessels from the Canal that he did, as before described, at their entrance; but no such registry of the entrance or exit of vessels is kept either at New Brunswick or Lamberlville. If a vessel enters the Canal, whose destination does not require her to pass the Princeton office, she pays her tolls and receives her clearance at the first collector’s office she passes; and if her destination does not re- quire her to pass any collector’s office, she is required to visit one, or the collector must visit her, and ascertain and receive her tolls, and give her a clearance in the same manner, before she can leave the Canal. The lolls on all vessels which pass the Prince¬ ton office are' required to be paid there. The collectors are au¬ thorized to unload any vessel, and weigh the cargo, for the pur¬ pose of testing the truth of the manifest, if they think there is sufficient cause. When the collector receives the tolls, he is re¬ quired to ascertain the actual weight of the cargo which is to be carried through the Canal, discriminating between that called superior merchandize, on which the Company is required to pay eight cents per ton transit duty to the state, and that called infe¬ rior merchandize, on which the Company is required to pay a transit duty of two cents per ton to the stale, and to enter in a book kept by him, the date of the arrival of the vessel at his office, her name, from what place on the Canal she has departed, and where destined, the kind of cargo on board, the number of tons of superior and inferior merchandize, the amount of way toll, if any, the amount of through toll, and the total amount of toll. The duties of the other collectors are the same as those of the collector at Princeton, before described, excepting that they are confined exclusively to the receipt of tolls, and other charges on merchandize, which is carried in vessels that do not pass through the whole length of the Canal. The other charges before mentioned to be received with the tolls, are certain charges called lockage and mileage. Transient vessels, carrying over thirty tons of cargo, pay four cents for each mile traveled on the Canal, and four cents for passing each lock, making two dollars and twenty-eight cents for the whole length of the Canal, besides the tolls on the cargo; and vessels carrying less than thirty tons of cargo, twelve and a half cents per mile, exclusive of the tolls on the cargo; and vessels of less than thirty tons burthen, which go one way by sea, and re¬ turn through the Canal, pay twelve and a half cents per mile, ex¬ clusive of cargo; and for each additional ton above thirty, one half a cent per mile, exclusive of cargo. Coal vessels going in one direction loaded, are exempt from the charge of mileage, and are permitted to return empty, free from all charges. Way ves- 4 sels on Feeder pay one dollar for passing the outlet lock at Lam- bertville.- The clearances delivered by the masters of vessels to the harbor-master or lock-tender at the outlet of the Canal, are retained by him until the end of each month, when they are de¬ livered or forwarded to the treasurer of the Company, or the offi¬ cer whose duly it may be to examine the accounts of the collec¬ tors, who compares the clearances with the collector’s books, and corrects the latter by the clearances, if they are found incorrect. The collector then accounts to the treasurer for the amount of tolls received in the previous month, and the clearances are de¬ livered to the collector. The collector at Princeton usually de¬ posits the moneys received for tolls in the Princeton Bank, as they are received, to his own credit, and at the monthly settlement transfers them to the credit of the treasurer of the Canal Com¬ pany. At the monthly settlement, the collector at Princeton also makes a return to the treasurer of the Canal Company, of the number of Ions of superior, and of inferior merchandize, transported through the Canal for the preceding calendar month, from which returns the treasurer makes up his quarterly returns to the State Treasurer, on which transit duties are paid to the state. The Canal Company had, for a short time, an agent at Fair- mount, on the Schuylkill river, who received the tolls on the coal that passed that place bound to any point on the Delaware and Raritan Canal; and accounted to the collector at Princeton, who entered the amount of tolls and tonnage on his book, previous to his monthly settlement, when they were accounted for in the same manner as if the tolls had been received at the Princeton office. The foregoing is the regular method of transacting the business of transporting merchandize and passengers, and receiving tolls on the Canal, and at the opening of navigation, was the only mode; but soon after that time the Canal Company adopted a system of making special contracts with the owners of different transportation lines, and with individuals, by which they agreed to receive, in some cases, a less amount of tolls than that fixed by the regular tariff of tolls, and in other cases, a certain per cent- age on the amount of money charged by the owners of the trans- 5 porfation lines, for carrying merchandize through the whole ex¬ tent of those lines; and also, of making discriminations in the toil to be paid by the same persons, on, similar articles, when carried to different places beyond the extremities of the Canal. This system has continued from its adoption in 1836 to the present time; and has confined the transportation of superior merchandize, almost exclusively, to the vessels of the persons having special contracts; and has, also, led to great uncertainty and error in determining the tonnage on which transit duties are paid to the state. Special Contracls and Arrangcmcnls for the Payment of Tolls. The principal special contracts and arrangements made by the Joint Companies for the transportation of merchandize through the Canal, and the receipts of tolls thereon, are the following: First —The contract made September 1st, 1836, with the owners of a transportation line, then running between New York and Philadelphia through the Canal, called the Merchants’ Line, owned, prior to 1841, by the New Brunswick Steamboat and Canal Transportation Company, in connection, at diflerent times, with C. & F. King & Co., Philadelphia, Miller & Bancker, George McHenry & Co., and James Schott & Co., in New York, and after November 1, 1841, entirely by the New Brunswick Steamboat and Canal Transportation Company. And also, the arrangement made with the owners of the said Merchants’ Line, in 1838, for the establishment of another trans¬ portation line through the Canal, between New York and Phila¬ delphia, called the Swiftsure Line. Both of these lines have continued to run through the Canal from the date of the arrangement until the close of navigation, in 1849. By the terms of said contract, the owners of said lines paid the Canal Company for the 5 ’ears 1836 and 1837, twenty-five per cent, on the whole amount of money charged by them for car- rying goods over the whole distance between New York and Philadelphia, instead of the regular tolls and charges fixed by the tariff of tolls; after the year 1837, the owners of said lines paid 1 * 6 the Canal Company twenty-five per cent, on all moneys charged by them, for carrying goods the whole or any part of the distance between those cities, instead of the regular tolls and charges aforesaid. The owners of said lines established a line through the Canal, between Philadelphia and Albany, in 183S, called the Albany Union Line, which only dispatched a few vessels, on the cargoes of which they appear to have paid the regular lolls. They also sent a few vessels from Philadelphia to Albany and back, in 1844, and paid one-sixth of the freight charged by them for transporting the goods, instead of the regular tolls and charges; and in 1846, they sent a large quantity of iron from the Delaware river to Bridgeport, Connecticut, and to Hudson, New York, and paid one-fourth, or twenty-five per cent, of the freight charged thereon, instead of the regular tolls. The New Brunswick Steamboat and Canal Transportation Company, also, employed about twelve barges in the transporta¬ tion of coal through the Canal, from 1835 to 1846, inclusive, and paid the regular rates of toll. The Merchants’ and Swiftsure Lines usually employed from eighteen to twenty-four barges in the transportation of merchan¬ dize, and frequently chartered others. Second —The contract between the Joint Companies and George W. Aspinwall, of Philadelphia, for himself and his associates, made in January, 1845, for the establishment of a transportation line through the Canal, between Philadelphia and Albany and Troy, called the Iron Steam Packet Line; said contract was made in writing, and was to continue for seven years. By its terms, the owners of the line were required to pay to the Canal Company ten per cent, on the amount of the freight bona fide charged on all merchandize, and seven and a half per cent, on the freight charged on all coal transported by them, instead of the regu¬ lar tolls and charges. The owners of the line were restrained by their contract from carrying any thing, except coal, between Philadelphia and New York, for other persons, but were per¬ mitted to carry salt, grain, meal and flour, which they might own or purchase, between those cities, by paying twelve and a half per cent, on the freight charged by the New Brunswick Company, on the same kind of articles, instead of the regular tolls and charges. Coal carried by said line to New York, was charged the regular tolls. Mr. Aspinwall, who was examined be¬ fore us, as a witness, testified that said line was intended to super¬ sede an imperfect line that was running between Philadelphia and Albany, belonging to the New Brunswick Company; and that no person was interested in said line, who was interested in the Joint Companies. The Joint Companies precluded themselves, by the contract, from making any special agreement with any other company or individual, for running a line of propeller steamboats, or barges, between Philadelphia and any point north of Manhat¬ tan Island, during the existence of said contract; said line was limited by the contract to ten steamers. Mr, Aspinwall had been engaged previously to the date of the contract, in running a line of steamers by sea, between New Vork and Philadelphia, which was discontinued on the establishment of the line through the Canal. He and his associates established their Canal line in the spring of 1845, and continued to run it successfully, as he states, until early in the season of 1848. In the spring of that year, the Commercial Transportation Company, incorporated by the legislature of New Jersey, early in 1848, for the express purpose, commenced running a line of barges through the Canal, between Philadelphia and Albany and Troy, which was found or believed, by Mr. Aspinwall and his associates, to compete injuri¬ ously with the business of their line. The proprietors of the Commercial Line claimed from the Joint Companies a special agreement in their favor, to enable them to compete with Mr. Aspinwall and his associates, who insisted on their part, that they should be protected from competition, according to their contract; after several interviews between the parties interested, Mr. Aspinwall and his associates proposed that if the Joint Companies would pay them, annually, with interest for the re¬ maining four years the contract continued, a sum of money equal to the difference between the amount they had paid the Canal Company instead of tolls, in 1847, and the amount that would have accrued on the merchandize transported by them in that year, according to the regular tariff of tolls, they would rescind their contract. Their proposition was accepted, and the Joint Companies agreed to pay them seven thousand two hundred and ninety-five dollars and forty-two cents annually, for four years, with interest from the 1st of May, 1848, and they then re¬ scinded the contract, discontinued their line, and according to a previous arrangement, sold most of their vessels to the Commercial Transportation Company, and became interested in their business early in the year 1848. Third —The contract made in 1848, with the Commercial Transportation Company, for the establishment of a line through the Canal, between Philadelphia and Albany and Troy. By said contract, the owners of that line were required to pay the Canal Company, instead of the regular tolls, twenty-five per cent, on the freight charged by them for transporting all articles not spe¬ cifically enumerated in the tariff of tolls; for all enumerated arti- ticles they were required to pay the regular tolls. The contract with the owners of this line was to continue during the pleasure of the directors of the Joint Companies. A new contract was made in 1849, more favorable to the owners of the line. They now pay fifteen per cent, on the freights on merchandize, and ten per cent, on the freights on coal charged by them, instead of the regular tolls and charges. Fourth —The contract made in 1844, with Richard F. Loper, of Philadelphia, and M. W. Chapin & Company, of Hartford, Connecticut, for running a line through the Canal, between Phila¬ delphia and Hartford. The owners of this line paid ten per cent, on the amount of freights charged by them on merchandize, and five per cent, on the freight charged on coal, instead of tolls. This line has only employed a few vessels and is still running. Fifth—A. transportation line was established in 1847, by Shri- ver & Company, of Baltimore, under a special contract, made between them and the Chesapeake and Delaware, and the Delaware and Raritan Canal Companies, running through the Canals of those Companies, between Baltimore and New York. The owners of this line paid fifteen per cent, of the freights charged by them, instead of tolls to both Canal Compa¬ nies; of which, the former Canal Company received four-tenths, and the latter six-tenths. This line was only continued for a few months, and employed about three vessels. Another line has 9 been running through the Canals during the summer of 1849, be¬ tween Baltimore and New York, owned by Shriver & Company, of Baltimore, and William H. Thompson, of New York, paying the same proportions of the freight charged by them, to each of the Canal Companies, as were paid by the line last mentioned. Sixth —A transportation line, belonging to Abel, Wilson and Company, of Easton, Pennsylvania, has been running through the Canal for several years prior to 1849, between that place and New Brunswick, under a special contract, requiring the payment of one half of the regular tolls and charges monthly. When the boats of this line passed the Princeton office, the collector entered the weight of the cargo, and charged himself with the full amount of the tolls and charges, according to the regular rates; and at the end of the month, when his account is settled with the trea¬ surer of the Canal Company, he is credited with a deduction of one half of the amount charged. The contract with the owners of this line ended in 1848; they now pay the regular tolls. Seventh —By a resolution of the executive committee of the Joint Board of Directors, passed November 9th, 1841, Captain Robert F. Stockton was authorized to employ not exceeding four barges, in carrying coal through the Canal to Albany, and places east of New York, free from tolls for three years; and after three years, at one half of the tolls charged to other persons; and if those barges were employed in carrying other articles, the rates charged to other persons were to be charged; Captain Stockton, in all cases, paying the transit duties to the state. If the barges were employed in carrying coal to New York, they were to be placed on the most favored footing. Four iron steam propellers were employed under this contract, in 1842 and 1843, when the business was discontinued. The object of the executive committee in making this arrange¬ ment, appears to have been the introduction of the use of coal, carried through the Canal, at distant places, where but little or none had been previously used, and thereby to increase the trade through the Canal. The above named are the only special contracts that re¬ quired notice, in connection with the mode of transacting the business of transportation on the Canal. 10 Discriminations on the Tolls charged on articles carried through the Canal to different places. The regular toll on coal carried through the main Canal, is thirty cents per ton, and if carried from the outlet lock at Lam- bertville, through the Feeder and main Canal, to New Brunswick, thirty-five cents per ton; but if carried on either of these routes to Newark, Lodi, Ramapo, or any point north of Manhattan Island, or east of Hurl Gate, a deduction of ten cents per ton is made 'from those rates. Articles not enumerated in the tariff of tolls transported in transient vessels, pay four cents per ton per mile, if carried through the Canal, destined to any point ex¬ cepting Easton, Pennsylvania; but if destined to that place, or shipped or landed at any point on the Canal, they pay one cent per ton per mile. The special contracts made with the owners of the transporta¬ tion lines, operate to some extent as discrimination in the tolls on the same kind of merchandize, when bound to different places beyond the extremities of the Canal. The deductions which are made from the regular rates of toll, in some cases, are made previous to the entry of the cargo on the collector’s book; in other cases, the regular tolls are charged, and the deductions made at the end of the month. Deductions from the regular rates of toll are sometimes made to large transporters of coal; none of which require special notice, in connection with this branch of the subject. Slelhod of ascertaining the Tolls to he paid and the Tonnage carried bp the Transportation Lines. This subject, with reference to the Easton Line, has already been disposed of. The agents of the Iron Steam Packet Line of Mr. Aspinwall and his associates were required, by their contract, to send to the collector at Princeton, a certified copy of the freight-list of each vessel, from which the collector, at the end of the month, made n up and entered in his book, the tolls to be paid by the line for the month, and, at his settlement with the treasurer of the Canal Company, drew on the agents of the line for the amount. The agents of this line kept full and accurate manifest books, contain¬ ing a detailed account of their business. The agents of all the other transportation lines were required to keep regular manifest books, and on a certain day after the close of each month, they produced the books, and a statement of the business done by them the previous month, to the executive committee of the joint board, when the sum to be paid to the Canal Company for tolls was ascertained, and the collector at Princeton informed of the amount, which he enters on his book, and at his settlement with the treasurer, draws on the agents of the lirie in his favor for the money. The agents of the transportation lines, (excepting the Iron Steam Packet Line of Mr. Aspinwall and his associates,) were required to forward by each vessel a toll-list or manifest, containing a description of her cargo. By this toll-list, and by inspection, the collector estimated the weight, and ascertained the descrip¬ tion of the cargo; these estimates were made with some apparent care, and entered in detail, as the vessels passed, until about the year 1840. Soon after that period, the collector commenced the practice of entering the weight of the cargoes in gross, without giving any enumeration of the articles; and still later, the prac¬ tice of entering at the close of the month, all the vessels that had passed during the month, belonging to some lines, and of entering the quantity of superior and inferior merchandize carried by other lines the previous month, without stating the names or number of the vessels that carried it. The Joint Companies, in making their contracts with the owners of transportation lines, have never, as far as we can dis¬ cover, required them to enter in the manifest books the weight of the merchandize forwarded; nor have they, until lately, re¬ quired a proper degree of care in making out the toll-lists sent to the collector, to enable him to judge correctly of the weight or kind of cargo on board, or to ascertain whether it was subject to transit duty or not; some of those papers only contained one entry, of a round number of tons of merchandize, without speci- fying whether it was superior or inferior, or whether it was to pass across the state or not; and others contained an enumeration of a few leading articles of the cargo, without specifying any weight whatever. The freight-lists sent by the Iron Steam Packet Line were only required to contain an account of money charged for freight, and only did contain the weights of the coal, and other articles carried by the ton, and a very general enumer ation of the other articles, without giving their weights. Towing on the Canal, The animal power required for lowing vessels navigating the Canal, is furnished by an individual, who conducts the business on his own account, at rates of charge under the control of the di¬ rectors of the Companies. The owner of a vessel may employ his own animals in towing, but is not allowed to employ those of any person not authorized by the Company to furnish them. The Books of Account of the Company, and manner of keeping them, and the manner of receiving and disbursing the funds of the Company. The secretary of the Canal Company keeps a day book, ledger and general abstract book. The day book contains the current entries of the disbursements for every purpose whatever, charged to the proper account and credited to the treasurer. The ledger contains an account for each kind of disbursement, to which the several accounts are carried from the day book. A general ac¬ count called “ Delaware and Raritan Canal,” shows all the dis¬ bursements for construction, and an account with the treasurer, showing all the payments made by him, excepting those for divi¬ dends. The general abstract book of the secretary shows the whole current income of the Company, from tolls, and all other sources, specifying the amount received monthly, at each collector’s office. The several amounts added together for each six months, and also the current disbursements, arranged under several heads for each month, and added for every six months. 13 The treasurer lieeps a ledger or cash book, in which he cliarges himself on one side with all the moneys of the Company that he receives from all sources, and credits himself with all payments for disbursements, and for the payments made to the treasurer of the Railroad Company, who pays the dividends to the stockholders of the Joint Companies, as already mentioned, on account of dividends. The treasurer also keeps a general abstract book of the tolls received at each collector’s office monthly, and the num¬ ber of tons of superior and inferior merchandize transported across the state. The books containing the accounts of the receipts and disburse¬ ments of the Canal Company are simple and intelligible in their character, and appear to be kept with care and general accuracy. Having stated such preliminary matters relating to this branch of the subject as we deemed important, we shall proceed to give the details and results of our investigation of the third and eighth charges, which relate particularly to the transportation on the Canal, and therefore may be considered together. THian CHARGR. The third charge is “ That the quantity of freight carried on the Canal has been far greater than has been reported for transit duty.” EIGHTH CHARGE. The eighth charge is “ That the quantity of freight passing on the Canal has so greatly exceeded that reported to the stockhold- ^ers that a large portion of it has paid neither freight, nor toll, nor transit duty.” We commenced our investigation of the above charges by a comparison between tlie abstract book kept by the treasurer of the Company, and the monthly returns made to him by all the toll collectors, from the commencement of navigation on the Canal, in 1834, to the first of January, 1849, and found that the tolls re¬ ceived by the collectors, and the amount of merchandize entered on their books, during the period aforesaid, as “ merchandize 14 crossing the state,’* had been returned to the treasurer, and enter¬ ed oh his abstract book. We then compared the treasurer’s abstract book with the re¬ turns made to the State Treasurer, for transit duty, and found that all the merchandize entered on the collector’s books as sub¬ ject to transit duty, during the period aforesaid, had been returned to the State Treasurer, with the exception of nineteen thousand tons of inferior merchandize, transported in the quarter ending June 30,1841. The quantity of inferior merchandize transported, according to the col¬ lector’s book, being 39,397 3 1 7 And the quantity returned, being 10,897 2 1 7 Deficiency in the return, 19,000 0 0 0 This deficiency was evidently caused by an error in addition, made by John B. Hill, Esq., of New Brunswick, who acted as clerk to the treasurer of the Canal Company at the time, and made the addition which caused the error, as he testified on his examination before us as a witness. We then compared the abstract book of the treasurer with his cash book or ledger, and found that he had charged himself with all the moneys that had been received for tolls on the Canal, ac¬ cording to the different collector’s returns, during the same period of time. We.then proceeded to ascertain whether all the vessels navi¬ gating the Canal, had been duly entered on the collector’s books, and for that purpose compared the clearances delivered up by masters of vessels navigating the Canal to the lock-tenders and harbor-masters at the outlets, for the year 1848, with the books of the collector at Princeton, and soon found a number of omis¬ sions of the proper entries in the books, and concluded that no satisfactory result could be reached by, that process. We then commenced a very careful comparison between the register of the arrival and departure of vessels, kept at the outlet lock at Bordentown, since July 6,1846, by the harbor-master at 15 that place, and the books of the collector at Princeton; from this we soon discovered that during the time a registry had been kept, the transit of a large number of vessels belonging to the transpor¬ tation dines, which had passed through the Canal, had not been entered in the books of the collector at Princeton; and that con¬ sequently, no entry had been made from which a return of the weights of their cargoes could be made to the State Treasurer. We then requested the executive committee to procure for our inspection, the manifest books of those lines, in order that we might extend our examination through the period prior to the commencement of the registry at Bordentown. The members of the committee expressed their willingness to furnish us with such of the documents required as they could pro¬ cure, and soon after placed before us the manifest books of the Merchants’ and Swiftsure Lines. By a strict comparison between them and the collector’s books, it appeared that prior to the year 1840, the entries of the business transacted by these lines had been made with regularity, and the estimates of weights made by the collector, as far as we could judge, were tolerably accurate. We found that in 1840, the weights of a few cargoes carried by these lines, had not been entered in the collector’s books, and that omissions continued to increase until the close of 1846, when they began to diminish until the close of 1848, when our examina¬ tion ceased. The number of omissions was found to be very large in some years, being four hundred and thirty-one trips of the vessels of the Merchants’ and Swiftsure Lines alone, in the year 1846. It may be well to remark that the omissions here adverted to, are omissions to enter the tonnage carried by those vessels. The moneys due to the Canal Company for lolls, from these and all the other transportation lines, having been, as far as we could dis¬ cover, duly entered on the books of the collector at Princeton, and accounted for to the treasurer of the Canal Company. The manifest books of these lines contained full entries of the number of parcels of merchandize forwarded by each person, the name of the shipper and consignee, and the freight charged; but the weights of the parcels were often omitted, and the description 16 of the merchandize transported was too general and indefinite to afford any basis for a correct estimate of its weight. After ascertaining the number of omissions, the nature of the entries in the manifest books, and of the toll-lists sent by the trans¬ portation lines to the collector, and the manner in which the esti¬ mates of the weights of merchandize were made by him, it ap¬ peared to us that the tonnage of the cargoes omitted must be found by some other evidence than that afforded by the books. The estimates made by the collector for the cargoes entered, also appeared to be uncertain and unsatisfactory. The errors and omissions by which the interest of the state had suffered, appearing to have resulted either from the faults of the system adopted by the Companies for ascertaining the ton¬ nage, or from the carelessness of their officers in carrying it into effect, we thought it proper that the correction of the errors should be made at as little expense to the state as possible, and therefore, proposed to the executive committee that they should have a statement prepared by persons of experience in the busi¬ ness, of all the cargoes of vessels belonging to the different trans¬ portation lines not entered in the collector’s books, from 1840 to 1848, inclusive, with the best evidence they could procure of the weight of their cargoes; and, likewise, that some estimate should be made of the weight of the cargoes entered on the books more satisfactory than that made by the collector, and exhibit the same to us, together with the evidence on which they were founded, when we should again meet, after a recess we proposed to take in July last. We rndfle the requisition on the executive committee, also, because it was manifest that this would be a work of great labor, and would require more time than we could devote to one branch of the investigation. The executive committee agreed to have the statements and estimates required made by competent and experienced persons, and to produce them when we should again meet as proposed. After we again met, in September last, the executive commit¬ tee laid before us a statement showing the number of trips made by vessels of the Merchants’ and Swiftsure Lines only, which had been entered in the collector’s books, as well as those omitted. 17 and an estimate of the weight of all the merchandize transported by those lines from 1840 to 1848, inclusive, prepared by J. Gilbert Sweet, Samuel Thompson, Abiel Abbot, Archimedes Heckman and William H. Loper, who had all been employed by the agents of the Merchants’ and the Swiftsure Lines as clerks. By this state¬ ment, which corresponded with our examination, it appeared that ten hundred and ninety-one single trips, made by the vessels of those lines, had not been entered by their names and dates of arrival at the collector’s office, during the nine years aforesaid; seventy-two of which, with the collector’s estimate of the weight of their cargoes, had been entered in gross, without names or dates, in the year 1847, leaving ten hundred and nineteen single trips not entered on the collector’s books. The number of omissions in each of the nine years is as fol¬ lows ; ’ Year. JVumber of Trips. 1840, omitted, 4 1841, “ 11 1842, » 11 1843, “ 14 1844, » 142 1845, » 300 1846, » 431 1847, “ 151 1848, “ 27 1091 Deduct seventy-two, entered in gross in 1847, 72 Balance not entered, 1019 trips. In March, 1847, a supplementary entry was made in the col¬ lector’s book, and a corresponding return to the State Treasurer, of eleven thousand and seventy tons of superior merchandize transported by these lines in 1846, without any entry of the num¬ ber of vessels that carried it. This, of course, required a part of the vessels omitted for its transportation. Four of the persons who made the estimates of weight of 18 merchandize, which accompanied the statement referred to, were examined by us as witnesses, and testified as to the manner in which they were made. They estimated the weight of about ten cargoes, selected by a fixed rule, carried through the Canal in each direction, for every month during the nine years examined. Taking all weights entered in the manifest, and the known weight of the article or package (among merchants) where any such weight was known, and estimating the weights of all other articles, by comparing the price charged with the known rates of charge for one hun¬ dred pounds, at the time the articles were carried, or by their recollection of the weights of packages generally forwarded by the shippers. The estimates were made very much in detail, giving the name of each barge dispatched from the offices, the date of sailing, the amount of freight charged on her cargo, the number of tons en¬ tered by the collector, the number of barges not entered, and the weight of each parcel of the cargoes which were estimated. The persons who made the estimates all testified that they were made fairly, according to their judgment. Mr. Sweet who appeared to have given the most attention to the matter, testified that he believed he could estimate within an average of eight tons of the true weight of a cargo, by taking a large number together. By the proportion between the freight charged on the cargoes estimated, and the weights thus ascertained, the whole estimated amount of merchandize carried by those lines, during the nine years aforesaid, was found to be three hundred and eighty-nine thousand nine hundred and fifty-five tons; and the amount en¬ tered in the collector’s books during the same period, three hun¬ dred and seventy thousand five hundred and eighteen tons, leav¬ ing a deficiency of nineteen thousand four hundred and thirty- seven tons. It appears besides, by the statements, that three thousand six hundred and twenty-three tons of iron, and one thousand five hundred jand thirty-two tons of coal, carried by these lines in 1846 and 1848, were not entered on the collector’s book; and that therefore the whole deficiency in the return of merchandize transported by them during said period, is twenty-two thousand 19 eight hundred and sixty-six tons of superior, and one thousand five hundred and thirty-two tons of inferior merchandize, accord¬ ing to the estimate. The estimates were found to differ materially from those made by the collector, exceeding his estimates in some cases, but more frequently falling greatly below them. 'fey taking the omitted barges by themselves, and dividing the whole amount of freight charged on the cargoes by the average price charged per ton for transporting merchandize for each of the nine years, as determined by said estimates, we found that the estimated weight of the cargoes of the omitted vessels for each of the nine years, was as follows: rear. JVb. of vessels omitted. Weight of cargo. 1840, 4, 321 tons. 1841, 11, 1,006 » 1842, 11, 1,018 “ 1843, 14, 1,148 » 1844, 142, 11,313 » 1845, 300, 27,082 “ 1846, 431, 36,862 “ 1847, 151, 13,047 » 1848, 27, 2,254 “ 1,091, From which deduct the amount entered for the cargoes of the seventy-two vessels entered in gross in 1847, 6,710 And the number of tons returned in the supplementary return for 1846, 11,070 Add three thousand six hundred and twenty-three tons of iron, not returned and not included in es¬ timates. Total amount of superior merchandize carried by the omitted vessels, according to the estimate, 79,888 The amount of coal carried, 8,739 tons. “ » “ “ returned, 7,207 “ Balance of coal carried by those lines, not returned, 1,532 70,265 3,623 20 Two of the clerks who made the estimates, testified that a large quantity of inferior merchandize had been transported by the lines, within the period aforesaid, most of which was entered in the collector’s books as superior, which fact we also discovered by inspection of the manifests and collector’s books. After ex¬ amining the statements and estimates presented to us, we heard the testimony of the persons who made them, and of the collector at Princeton, and procured such further information on this sub¬ ject as was within our reach. We soon after received the following communication from the executive committee, stating their views in laying the estimates To Ike Committee of Investigation: Gentlemen :—We lay before you the results of the detailed and laborious examination of the bilis of lading of the Merchants’ and Swiftsure Lines, from 1840 to 1848, inclusive, which we have caused to be made for the purpose of ascertaining what number of barges have been omitted by the collector in his returns to the treasurer of the Canal Company, and whether his returns of those not omitted by him, corresponded with the actual amount of mer¬ chandize on board. In this work we have had the assistance of the most expe¬ rienced clerks belonging to those lines, and may therefore pre¬ sume that the results arrived at bear a very close approximation to the truth. We find the number of barges omitted by the col¬ lector quite large; and on the other hand, we find that his returns have, in general, exceeded the actual amount of cargo. The whole number of tons transported, as the estimates show, during these nine years, have amounted to three hundred and eighty-nine thousand nine hundred and fifty-five tons. The amount returned by the collector in the same time has been three hundred and seventy thousand five hundred and eighteen tons; showing a deficiency of nineteen thousand four hundred and thirty-seven tons. But it is also to be taken into account that the amount returned by the collector has been returned as superior merchandize; and it is well understood that more than twenty thousand tons of the 21 amount carried by these barges, during the time aforesaid, has been inferior merchandize. So that, in truth, the amount of merchandize returned by the collector, corresponds very nearly in the aggregate, with the actual amount of merchandize carried. But whilst this is so, the Joint Companies have no desire to set up any off-set for the excess in the collector’s returns, against the deficiency arising from his omissions of barges. The statement is made here for the purpose of showing that, except from the carelessness or misapprehension of subordinate agents and clerks, the returns would really greatly exceed the actual amount of merchandize carried, being about equal to it in the aggregate account of nine years, notwithstanding the large number of barges omitted by the collector in some of those years. The executive committee were well satisfied, from the general instructions which the collector had received to make his re¬ turns liberal, and to lean in favor of the state, that if he had followed out those instructions, his returns must considerably exceed an accurate estimate of the cargoes transported. But taking the omitted barges by themselves, and estimating the amount of their cargoes, without regard to the excess in the collector’s returns of the cargoes of other barges, we find that the tonnage omitted in these lines amounts, during the nine years specified, to seventy-nine thousand eight hundred and eighty-eight tons of superior merchandize, and one thousand five hundred and thirty-two tons of inferior merchandize; the transit duty on which amounts to six thousand four hundred and twenty-one dollars and sixty-eight cents, which the Companies will in due time cheerfully pay, as they will have no hesitation to do with regard to any other sums which, upon a re-statement of any of the accounts, may be found due to the state. The managers of the Companies being conscious of no wilful or fraudulent detention of any moneys accruing to the state, will also be happy to afford, as they have hitherto done, every facility to the Commissioners for ascertaining the correctness or incorrectness of any accounts of the Companies. On behalf of the executive committee. JNO. R. THOMSON, Secretary. October 30th, 1849. By this communication it appears that the committee insist that the entries of tonnage made by the collector, greatly exceed the true weight of the cargoes entered; that the state has been greatly benefitted by the entry of merchandize as superior, which really was inferior, &c.; but express their willingness to make an additional return and payment of transit duties for the cargoes not accounted for, by estimating their weight from the freight charged on them, according to the average rates charged by the ton in the several years in which the omissions occurred, as ascertained by the estimates aforesaid. Having fully considered the communication of the executive committee, the testimony taken by us, and all the other facts that we had been able to collect relating to this branch of the in¬ quiry, we concluded to adopt the estimate of the omitted mer¬ chandize, contained in the said communication, as the nearest approximation we could make to the truth, from the means within our reach, and to report the amount therein stated of seventy- nine thousand eight hundred and eighty-eight tons of superior, and one thousand five hundred and thirty-two tons of inferior merchandize, as the amount transported by the Merchants’ and Swiftsure Lines, prior to January 1 , 1849 , on which transit duties have not been paid to the state. We are induced to report these amounts, because we cannot discover that any positive or definite knowledge of the weights of the cargoes omitted is in existence; and because the time at our disposal would not enable us to collect from shippers and others, a sufficient number of facts to constitute the basis of a more satisfactory estimate than that submitted to us. And although our duty requires us to express our confidence in the integrity and general intelligence of the witnesses examined by us, who assisted in making the estimates, it also requires us to express our decided opinion that estimates founded on the mere judgment and recollection of men, however honest and intelligent they may be, should not be received in future as the only evidence of the rights of the state. The executive committee, in their communication to us, insist that the state has received the full amount of transit duties due her on the merchandize transported by the Merchants’ and Swift- 23 sure Lines; but they in effect admit at the same lime, that she has received them by an accidental balance of errors. It may be proper to add, while speaking on this branch of the transportation on the Canal, that the clerks employed by the agents of the Merchants’ and Swiftsure Lines who were examined by us, testified that the manifests, books and papers, exhibited to us, contained true and full accounts of all the business transacted by those lines through the Canal. Iron Steam Packet Line. After completing the foregoing examination, the executive com¬ mittee, at our request, procured the attendance of George W. Aspinwail, one of the owners of the Iron Steam Packet Line, who was examined by os as a witness, respecting the contract between the owners of the line and the Joint Companies, and the business done by them through the Canal. Mr, Aspinwail freely tendered to us the manifests and other books and papers relating to the affairs of their line, for our inspection. The entries made by the collector at Princeton, of the mer¬ chandize transported by this line, and the tolls received thereon, were, as before stated, generally made in gross, at the end of each month, without specifying the names or number of vessels that had passed. It was therefore impossible to compare par¬ ticular cargoes with the entry of the collector; but on examina¬ tion of the manifests, we found that they contained the actual weights of a large portion of the merchandize, and that large quantities of other articles were transported, the weights of which were well known among merchants, leaving the weights of but a small portion of the cargoes that could not be ascertained from the manifests alone. We then examined the manifests for one month, and found that the weights we could ascertain and compute from them, after rejecting all non-dutiable merchandize, exceeded the amount entered on the collector’s book, by several liundred tons, besides a considerable quantity of merchandize, the weight of which was yet to be determined by other evidence than the manifests. The discovery of this fact obliged us to investigate the collec- 24 tor’s entries of the tonnage transported by this line for the whole period it was running, which was done in the following manner: We entered in two columns the weight of all the merchandize subject to transit duty we could ascertain or compute from the manifests for each month, placing the superior merchandize in one column and the inferior in another, and in another column the amount of freight charged; ki a fourth column we entered the freight charged on articles not subject to transit duty. We then found, by deducting the sum of the two columns of freight from the whole freight charged for the month, the amount of freight charged on the articles of which the weight could not be determined or calculated from the manifests. We had previ¬ ously been informed by Mr. Aspinwall, what he believed to have been the average price charged per ton for the kind of articles in question, and therefore estimated the weight of that description of merchandize by dividing the amount of freight charged on it bythe price per ton named by him, and by adding that amount to the columns of weights before mentioned, found the whole quantity of merchandize transported by the line for the month; and in like manner determined the whole amount transported by the line from March, 1845, to May, 1848, inclusive. This kind of examination required great labor and the closest attention, as every entry on the manifest must be scrutinized with care to discover whether it was superior or inferior merchandize; whether subject or not subject to transit duty. Besides, the amount of business done by the line was quite,large, one hundred and ninety-eight thousand and ten dollars and forty-one cents having been charged for freights while the line was running. The entries made in the collector’s books of merchandize transported by this line, were strikingly below the truth. In one particular month the weights of superior merchandize entered on the manifests, or easily computed from them by the known weights of the articles, exceeded the amount entered by the collect¬ or, two thousand seven hundred and seventy-seven tons, without taking into consideration the weights of the articles not discov¬ erable from the manifests. His entry of inferior merchandize for the same month, exceeding our estimate by one thousand six hundred and fifty-five tons; and the instances were frequent 25 where the collector’s entry of superior merchandize was several hundred tons below the amount transported, without any excess in his entry of inferior merchandize to account for it. It is, however, but just to say, in palliationi of what may appear to have been gross carelessness in the collector, that the toll-lists sent by the owners of this line, although they contained every thing that their contract with the Joint Companies required, gen¬ erally, only contained the weights of the coal transported, which the collector entered with some degree of correctness. These toll-lists were materially deficient in the information tliey furnished the collector, in another respect—that is, they did not discriminate between dutiable and non-dutiable merchan¬ dize. The large size of the vessels of this line, likewise, rendered it difficult to examine their cargoes sufficiently to estimate their weight. We have found in the manner before stated, that seventeen thousand six hundred and ninety-six tons of superior, and one thousand nine hundred and forty tons of inferior merchandize, transported by this line between the 1st of March, 1845, and the 1st of June, 1848, have not been returned to the State Treasurer, or transit duties paid thereon. Comiimdal Line. We also examined the manifests of the Commercial Line, run¬ ning through the Canal in 1848, in the same manner as we did those of the Iron Steam Packet Line last mentioned, and found that the merchandize transported has been duly returned to the State Treasurer for transit duty. Hartford Line. The proprietors of the Hartford Line employed a few vessels in transporting merchandize through the Canal between Philadel¬ phia and Hartford, in 1844 and 1845, some of which were char¬ tered ; these were entered on the collector’s books and paid the tolls on their cargoes as they passed, and others were entered on the books at the end of the month. We cannot discover that any 3 26 omissions of tonnage carried by them have been made prior to 1846. In 1846 the collector charged himself with all the tolls due from that line, excepting one item of two hundred and three dol¬ lars and thirty-one cents, which appears to have been afterwards accounted for, but made no entry of the tonnage transported. In 1847 and 1848, entries were made of both tolls and tonnage; and, as we could not judge of their correctness from the collector’s books alone, we requested the executive committee to procure some further evidence on the subject, and a statement made by the agents of this line was laid before us. This did not furnish us with all the information required. Two of our number then visited the office of tliis line in Philadelphia, where the manifests and other books were freely exhibited to us by William M. Baird, the present agent. On inspection of the manifests we found that they contained the weights of but a few of the articles shipped at Plartford; nor did they contain, as we believed, a sufficient amount of information to enable us to estimate the tonnage transported with reasonable accuracy. We therefore requested Mr. Baird to make an estimate of the tonnage transported by this line, in 1846, 1847 and 1848, which was afterwards made by him, with the assistance of the clerks in his office, and Samuel Thompson, who detailed to us the manner of making it. By this estimate it appeared that the said line had transported in the three years mentioned, eleven thousand five hundred and seventy-three tons of superior, and three thousand seven hundred and ninety-one tons of inferior merchandize; and that the collector had entered on his books nine thousand five hundred and six tons of superior, and four thousand four hundred and sixteen tons of in¬ ferior merchandize; showing a deficiency of two thousand and sixty-seven tons of superior, and an excess of six hundred and twenty-five tons of inferior merchandize. In the absence of more certain and definite evidence on the subject, we are induced to adopt the said estimate, as the nearest we can make to the deficiency in the returns of merchandize transported by this line, and therefore report the same accordingly. Ballimore f^ine. The manifests of the transportation line running through tlic Canal between Ballimore and New York, in 1847, were minutely examined. We found that seven hundred and fifty-six tons of superior, and one hundred and fourteen tons of inferior merchan¬ dize had been carried by this line while running, and that one hundred and twenty-two tons of superior and no inferior mer¬ chandize had been entered on the collector’s books; leaving there¬ fore a deficiency of six hundred and thirty-four tons of superior, and one hundred and fourteen tons of inferior merchandize trans¬ ported by this line which had not been returned to the State Treasurer, or transit duties paid thereon. We ascertained the weight of all the mercliandize carried by this line from the manifests, except a small quantity which was ascertained by a comparison between the average price per one hundred pounds, which appeared to have been charged, and the whole amount of freight charged on articles, the weight of which had not been entered, or could not be computed from the mani¬ fests. It appears by examination of the books of the treasurer of the Canal Company, and the collector at Princeton, and is admitted by the executive committee, that the transit duties on twenty-two thousand eight hundred and fourteen tons of coal transported through the Canal in 1842 and 1843, by Robert F. Stockton, under the authority of a resolution of the executive committee, before mentioned, authorizing him to transport coal to Albany and to places east of New York, for three years, free from tolls, have not been paid to the state. Tlie amount of those transit duties were paid by Capt. Stockton, in 1844, to the treasurer of the Canal Company, who charged himself with it, but the quan¬ tity transported was not entered in the collector’s book or returned to the State Treasurer. The amount of the transit duty on it is therefore still due to the state. There is a deficiency in the return to the State Treasurer of inferior merchandize transported in December, 1847, of one thousand seven hundred and sixty-one tons and fourteen cwt. caus¬ ed by an error made by the collector at Princeton, in entering the number of tons of coal on which the tolls had been received by Mr. Pennington, the agent of the Company at Fairmount; the number of tons entered by the collector being one thousand seven liundred and sixty-one tons and fourteen cwt. less than it should have been. The transit duty on it is still due to the state. The tonnage carried by the Easton Line appears to have been correctly estimated and regularly entered in the collector’s books as the boats passed. A large quantity of lumber passes eastward through the Canal, in rafts, and is now measured by the harbor-master at Borden- town, who enters his measurement in a book, and informs the collector at Princeton of the quantity. The latter receives the tolls and enters the tonnage on his book, in the same manner as merchandize transported in transient vessels. We have had an opportunity to examine this branch of trans¬ portation to a small extent, by comparing the quantities entered on the collector’s book with those ascertained from other sources, and as far as we have investigated this branch, found the collec¬ tor’s entries correct. We have also examined and tested, in a general way, to a considerable extent, the entries made by the collectors for the transportation by transient vessels, by.comparing the entries in the collector’s books with the registry of the harbor-master, the clearances, and such other documents and evidence as was with¬ in our knowledge. A few errors were discovered during this ex¬ amination, but none worthy of a special notice, or materially aflecting the interest of the state or the stockholders. The total amount of merchandize transported through the Canal prior to January 1st, 1849, which has not been returned to the State Treasurer, and on which transit duties have not been paid, estimated and ascertained as aforesaid, will be found in the following recapitulation: 29 Tons Superior. Inferior. Merchandize transported by Merchants’ and Swiftsure Lines, 79,888 1,532 Error in return to treasurer, June, 1841, 19,000 Merchandize transported by Iron Steam Packet Line, 17,696 1,940 “ “ Hartford Line, 2,067 “ “ Baltimore Line, 634 114 Coal transported by Robert F. Stockton, 22,814 Error in entry on collector’s book in 1847, not returned, 1,761 Superior, 100,285 47,161 Deduct over entry of inferior for Hartford Line, 028 Inferior, 40,533 The transit duties on these amounts are; On one hundred thousand two hundred and eighty-five tons of superior merchandize, at eight cents per ton, §8,022.80 On forty-six thousand five hundred and thirty-three tons of inferior, at two cents per ton, 930.60 §8,953.46 The transit duties due on the merchandize not returned for each of the nine years, from 1840 to 1848, inclusive, is : For 1840,.§27.30 “ 1841,. 455.23 » 1842,. 471.97 “ 1843,. 155.30 “ 1844,. 971.26 » 1845,. 2,499.70 » 1840,. 2,679.28 “ 1847,. 1,417.00 “ 1848,. 276.30 Total,.§8,953.46 The foregoing statement of deficiencies is submitted as the most accurate that, we believe, can be made from any evidence 30 now attainable.. Any estimate, however, made after so much time has elapsed, and in the absence of full descriptions of the merchandize transported, must be somewhat uncertain. In endeavoring to arrive at the truth, we have resorted to every probable source of information, but have been able to dis¬ cover but few facts derived from other sources than the books before mentioned, that have aided us materially in arriving at definite conclusions. Neither can much assistance or any evidence, that is not merely circumstantial, be derived from custom house entries, from the capacity of the vessels employed, or from the number of trips made by them. We have therefore been compelled to make the manifests, and other documents furnished by the agents of the transportation lines, the basis of the estimates made, which, al¬ though not entirely satisfactory, we believe are very near the truth. Although we think that the pecuniary interest of the state has been ascertained by this investigation with sufficient accuracy, duty requires us to express our disapprobation in the most decided terms, of the system by which the rights of the state, as the re¬ ceiver of transit duties, have hitherto been determined, and the manner in which it has been carried into effect by the subordi¬ nate officers of the Company. From the testimony before us, we believe that none of the errors and omissions in question have been the result of fraud in the directors, or the members of the executive committee of the Joint Companies, or of design on their part against the interest of the state. The collector and deputy-collector at Princeton, both testify that they were always instructed by them to make their estimates of tonnage on which transit duties were to be paid liberal towards the state, and that they so made them, according to the best of their judgment. The collector also testifies that, as far as he knows and believes, the first information the directors of the Company received of the omissions in the returns for transit duty in 1846, was given by him ; and that the supplementary re¬ turn of eleven thousand and seventy tons of superior merchandize, made in 1847, embraced all the omissions of which the treasurer had been informed. 31 The same testimony rebuts, in our opinion, every presumption that the returns made to the Slate Treasurer, were wilfully false or fraudulent on the part of the treasurer of the Canal Company, because no such fraud or falsehood could have been committed by him without an actual knowledge of the errors; of which there is no evidence before us. Neither, in our opinion, can an unfavorable inference against the honesty of the directors of the Joint Companies be drawn from the fact that some of them are largely interested in the transportation lines which carried the merchandize not returned; as a fraud or omission in the returns of merchandize, injurious to the state, could not benefit the owners of those lines, the amount of whose tolls depending not on the weights transported, but on the amount of money charged for transportation. Such fraud could, therefore, only benefit the whole body of stockholders of the Joint Companies, and not the directors in their individual capacity; and it is not to be presumed that they have committed a wilful fraud, in the profits of which others must share so largely. The errors and omissions then appear to be the natural conse¬ quences of the defective system adopted by the board of directors for ascertaining the rights of the state, and great remissness on the part of the executive committee in enforcing it, defective as it is; and also of gross carelessness on the part of the collectors. In making their contracts for receiving a per centage on the freight charged instead of tolls, depending on the weight of the articles transported, by which, as they allege, their stockholders were protected from the danger of frauds in estimating weight, the directors do not seem to have exercised that care and vigi¬ lance in guarding the rights of the state from the same danger that men should have exercised who were enjoying, by her per¬ mission, an exclusive privilege of great pecuniary value, and who, by their controlling influence in the corporation of which they were members, were the only actual guardians of those rights. When the regular returns of superior merchandize transported in 1846, were made out at the close of that year, showing a falling off from the business of the previous year of nearly one half, the directors do not seem to have instituted such investigation into the causes of their apparently declining business, as the in- terest of their stockholders alone should have prompted. Neither did the executive officers of the Canal Company, when the col¬ lector informed them of the omissions made by him in the last four months of 1846, which compelled them to make the supple¬ mentary return in 1847, scrutinize their books sufficiently to dis¬ cover, as they might have done, that great omissions had like¬ wise occurred in the previous months of the same year, as well as in preceding years. The neglect of the executive committee to furnish the collec¬ tors with adequate means and information for estimating the tonnage, excuses in some degree, the errors committed by the latter in the discharge of that branch of their duties; but neither that nor any other omission of the executive officers furnishes any excuse for their frequent neglect to notice, in any way, the transit of large quantities of merchandize through the Canal, nor their neglect to inform the executive officers immediately of omissions within their knowledge, not covered by the supple¬ mental return; with which neglect they appear by their own tes¬ timony to be chargeable. The only report made by the directors to the stockholders, in connection with the eighth charge, that appears to require notice, is the general report made in 1848, of the total quantity of mer¬ chandize transported in each year, from 1834 to 1847, inclusive, and also of the quantities of certain articles transported in 1847. The table of the total amount transported agrees with the re¬ returns made to the State Treasurer, by including the, regular and supplementary returns for 1846, with the exception of a de¬ ficiency in the report of about two hundred tons in 1838, and an excess of three hundred tons in 1847, the cause of which we have not endeavored to ascertain on account of their small amount. The principal allegation in the pamphlet, in support of this eighth charge, is that the weight of the superior articles enume¬ rated in the report as passing through the Canal in 1847, is greater than the whole amount of superior merchandize returned for transit duty, without including general merchandize. This apparent discrepancy was caused partly by an error in print¬ ing the items of eighty-six thousand and forty-one tons of maize in said enumeration, which should have been eighty-six thousand and forty-one tons of merchandize. The alleged discrepancy is partly explained by the report itself, which represents the enu¬ merated articles as passing “on” and not “through” the Canal, and a large portion of these is way merchandize, not subject to transit duty. We have, however, paid but little attention to the correctness of the enumeration of particular articles in the report. It was deemed more important to discover the whole amount of merchandize transported than to ascertain the quantities of par¬ ticular articles, or to discover the cause of errors in reports. With regard to the question whether freight or tolls have been paid on all merchandize transported on the Canal or not, we need only remark that the Joint Companies do not appear to have been engaged in the business of transporting on their own account, and therefore, cannot be interested in the question of freight, properly so called, except as the measure for ascer¬ taining the tolls to be paid by the transportation lines. Tolls appear to have been duly paid on all merchandize trans¬ ported through the Canal, according to the tariff of tolls on transient vessels, or according to the several special contracts with the transportation lines, excepting some small losses by bankruptcy. No correct computation of the income of the Canal Company from tolls can be made by calculating the tolls on all the mer¬ chandize transported, according to the regular rates, as the per centage on the freight paid by the transportation lines instead of tolls, generally amounts to less than the regular tolls, and their vessels are free from the charges of lockage and mileage. The question of transit duties, in connection with this charge, has already been sufficiently discussed. Before closing our report of this branch of the investigation, we deem it proper to state the conclusion to which the facts elicited during its progress have led us, with respect to the policy here¬ tofore pursued by the Joint Companies, relative to the Canal, considered in connection with the rights of the state and her citi¬ zens ; and also with respect to the future course of action requir¬ ed for the security of those rights. The present mode of determining the amount of the transit 34 duties to be paid to the state, is exceptionable in its principles, defective in its details, and uncertain in its results. Those transit duties are in fact taxes on the property and in¬ come of the Company, and not, as is often erroneously asserted, a tax upon passengers and merchandize transported on their works. The weight of the articles transported is declared by the charter to be the standard by which their amount is to be calcu¬ lated. A correct return of those weights is required under the oath of an officer of the Company. The charter, therefore, requires that such a method of ascer¬ taining weights should be adopted as would, if properly pursued, enable the officer who is required to render an account to the state, to testify, imderstandingly, to its accuracy; and although we have before stated that it did not appear that the officer who made the previous returns, had any knowledge of their incorrect¬ ness when they were made, yet, so many defects in the system have been made manifest by this investigation, that no persons should hereafter be required to give authority to its practical results by attaching to them the solemnity of an oath. If the estimates of the tonnage carried by the Merchants’ and Swiftsure Lines afford any evidence, the returns to the State Treasurer have been inaccurate, at least ever since 1840; and that they have not always been injuriously so to the state is the result of chance. From the testimony taken by us, it W'ould appear that any estimate, even if made with skill and care, and with better means of information than any yet furnished the collector, would still be uncertain to an extent inconsistent with the correct determination of the rights of the state. While the present system of special contracts exists, both past experience and the general tendency of things render it improbable that the collectors will exercise much care over the interest of the state, while they act with the knowledge that the income of their employers does not depend on their estimates or entries of the tonnage carried by the trans¬ portion lines. Neither should the state accept, as the measure of the rights which she has clearly and precisely reserved to herself by her 35 laws, anything so entirely imaginary as the liberality or generosity of a corporation. When the state imposes a tax on her individual citizens, she enforces from them correct accounts of all their property subject to taxation, under the most cogent penalties; and there can be no reason why the property of associated individuals should be ex¬ empted from the like accountability, especially when its value has been, in a great measure, created by the law which subjects it to taxation. It appears then to be manifest that a more certain and satisfac¬ tory mode of determining the actual weight of the merchandize transported on the Canal, should be adopted, both by requiring the transporters to produce sufficient evidence of the weight car¬ ried, and by the construction of proper apparatus for weighing it as it passes. No weigh-lock has yet been built by the Delaware and Raritan Canal Company, although such a structure seems indispensable to the correct transaction of business on any Canal. It may be urged as an objection to the use of a weigh-lock, that it will injure vessels by bringing them in contact with a solid substance; this will be the case to some extent, but vessels used in inland navigation are often left aground by the tide in situa¬ tions more dangerous than they would occupy in a weigh-lock. It may also be objected that no discrimination could be made by this means between superior and inferior merchandize. This is a matter of little consequence; the weight of nearly all inferior merchandize being well known or easily ascertainable by other means. From the inquiries made by us, it appears that a structure of this kind could be erected at a reasonable expense, at the princi¬ pal collector’s office, and seems to be absolutely required as a check on the transient business; and if the Canal should be ever thrown open to all persons alike, a weigh-lock would be indispen¬ sable to the security of the interest of the stockholders. The know¬ ledge that the Company possessed a means of detecting fraud, would tend to prevent its commission. The system of special contracts for the receipt of less than the regular rates of toll is entitled to some attention. 36 The charter declares the Canal to he a common highway, and also declares that it shall be used for the transportation of passen¬ gers, and all goods, commodities or produce, on payment of the established tolls; and evidently contemplates that it shall be used by all persons alike. There is no peculiar skill required in the use of a Canal, as there is of a railroad, that prevents it from being safely used by all persons. In view of these declarations of the charter, discriminations in the tolls to be paid by different per¬ sons transporting similar articles between the same points, are of doubtful propriety. The legislature, in chartering the Canal Company, were cer¬ tainly influenced by higher considerations than merely the crea¬ tion of a source of revenue to the state and of income to the stockholders. They contemplated the construction of a great public work which would afford profitable employment to the labor and capital of the citizens of the state, in transporting their own property or that of citizens of other states. By the enlarged size of the Canal, required by the supplement to the charter passed February 3d, 1831, they evidently intended that the work should be national in its character, and afford a communication that might be used by the coasting trade of the country with greater safety and equal facility with the ocean; and while they gave the di¬ rectors power to regulate tolls, did not authorize them to regulate the price’of transportation or to determine who should be the transporters. We infer from the collector’s books that the effect of the special contracts has been to exclude individuals almost entirely from embarking in the transportation of superior merchandize through the Canal; such contracts also appear to us to destroy the na¬ tional character and object of the improvement. The owners of transient coasting vessels cannot afford to send them through the Canal with a cargo of superior merchandize, as the tolls charged would be too large a proportion of the freight to leave them a sufficient remuneration for their labor. Whatever reasons there may have been at the opening of the Canal navigation, to invite persons engaged in transportation by sea, by special privilege’s", to conduct their business through the Canal, it is believed that few or none of them now exist; and it is 37 even questionable whether still greater advantage would not have accrued to the stochholders, if the same reductions of toll had been made at the opening of the Canal to the public at large, that were made to the transportation lines. It has been urged that those contracts were required to enable the transportation through the Canal, to compete successfully with that by sea. The whole transportation of superior merchandize, between New York and Philadelphia, has, for the last ten years, been confined to from eighteen to twenty-four vessels, owned by the same persons. Now, it appears to be the most unlikely of all methods of creating a successful competition, to limit the trans¬ portation through the Canal to a small number of vessels, and thus prevent any reduction of cost to the shipper, while that by sea is open to an unlimited number, with an active rivalry be¬ tween their owners. Experience has now proved that a certain quantity of superior merchandize will seek the Canal as the channel of transportation at the rates of toll paid according to the special contracts; and if it should be thought advantageous to increase the quantity by a further reduction of tolls, there is no obvious reason why such reduction would not have the same effect, if made to the public as if made to particular individuals. The concentration of capital required to carry on the business of transportation successfully, and to inspire the confidence of the public, is as likely to take place in this as in any other pro¬ ductive branch of industry. The adoption of the system of special contracts would also seem to neutralize, in a great measure, the advantage which greater safety gives the inland over the sea route; for by pre¬ venting that competition Between the transporters on the Canal, which would reduce the price to the shipper, they make it more advantageous for the latter to send his property by sea, even after paying the additional charge for insurance. Those contracts are also objectionable, considered in relation to the interest of the state as a stockholder. The Company have hitherto had no guarantee for correct ac¬ counts of the tolls due them from the transportation lines, except the integrity and honesty of the owners and agents; and although the individuals who have heretofore stood in those relations to 4 them, appear to have generally been men of respectability, they cannot expect to be always similarly connected with men of that character, nor should they rely on the accounts of other persons, when they could have recourse to their own. The exclusive privileges expressed in the charters of the Com¬ panies are sufficiently invidious, and ought not to be made still more obnoxious by a course of policy conflicting with the spirit of the charter, and of doubtful utility to the interest of the stock¬ holders. The discriminations in the tolls on merchandize carried by the same persons to diflbrent places beyond the extremities of the Canal, appear in some cases to add materially to the revenue of the Canal, without giving any just cause of complaint to individuals. There can be no doubt that business may be drawn into the Canal, by very low rates of toll, that might with nearly equal facility, seek other channels, and although the income derived therefrom may be small, it will be almost entirely profit. The reduction of the tolls on merchandize passing through the Canal between Philadelphia and Albany, and between Philadelphia and Hartford, have materially increased the revenue both of the state and the Company. But even such discriminations should never be made without a proper regard to the interest of the owners of other channels of transportation, nor unless the advantages to the party making them were manifest. Questions of mere policy, however, are matters of discretion with the directors of the Company. The intelligence and experi¬ ence of the present directors and their great interest in the pro¬ perty of which they are the managers, entitle their acts at least to a careful examination and serious consideration, and the exer¬ cise of their discretion should be properly regarded. For the purpose of showing the whole amount of transportation of passengers and merchandize liable to transit duty, which has passed through the Delaware and Raritan Canal, from the opening thereof in 1834 to 1st January, 1849, we have, at con¬ siderable labor and with great care, prepared the following table No. 5, which we believe may be relied upon as correct. It does not contain the amount of the tonnage of non-dutiable merchandize transported, as the collectors are not always in the practice of entering the weight of that in their books. TABLE V. 40 It may be well to add the following explanations of the table: The first column shows the date. The second and third columns show the number of tons of superior and inferior merchandize transported for each year and returned to the State Treasurer for transit duty. The fourth and fifth columns show the number of tons of superior and inferior merchandize actually transported and liable to transit duty, as ascertained by the Commissioners. The sixth column contains the whole number of passengers transported and returned to the State Treasurer for transit duty. The seventh and eighth columns show the number of tons of superior and inferior merchandize transported, liable to transit duty, and not returned to the State Treasurer. The ninth col¬ umn, the total number of tons of merchandize, superior and in¬ ferior added together, returned for transit duty. The tenth col¬ umn, the total number of tons of merchandize, superior and inferior added together, actually transported, as ascertained by the Commissioners. The eleventh column, the total number of tons of merchandize “ carried through the Delaware and Raritan Canal, from 1834 to 1847, inclusive,” as per statement in the “ Re¬ port of the Joint Board of Directors to the stockholders, made January 12,1848.” The amounts entered in the second and third columns were taken from certified copies of the returns made to the State Treas- The amounts entered in the fourth and fifth columns are the aggregate amounts of the second and third and the seventh and eighth columns. We annex hereto a statement or recapitulation of the omis¬ sions in the returns of passengers and merchandize transported on the Railroad and Canal, prior to January 1,1849, liable to transit duty, as shown by the preceding tables; showing also the amount due the state for the same. On the Railroads: Passengers omitted as shown by table 1, in the last column, viz: 7,593 Trips of messenger with Adams & Co.’s ex¬ press chest, 1,408 At ten cents each,, 9,001 $900.10 41 Amount brought forward, §900.10 Merchandize omitted, as shown by table 3: T. ewt. qr. lb. Through merchandize omitted in 1843, 120-17 3 20 Through merchandize carried by ex¬ press chest of Adams & Co., 251 00 0 00 Through merchandize carried by Liv¬ ingston & Co., 139 00 0 00 Through merchandize, winter trans¬ portation, 8,635 19 1 19 Way merchandize omitted, from cer¬ tain points and places between Cam¬ den and Bordentown, and from Princeton to Amboy, by Borden¬ town, 1,444 18 0 01 At fifteen cents, 10,591 15 1 12 1,588.75 On the Canal: Superior merchandize omitted: 100,285 tons, 5 cwt., 2 qrs., 6 lbs., at eight cents per ton, 8,022.80 Inferior merchandize omitted: 46,533 tons, at two cents per ton, 930.66 §11,442.31 From the above is to be deducted the amount return¬ ed in the supplemental return made in July, 1849, for omissions made previous to January 1,1849, viz: On Railroad, 7,295J passengers, at ten cents, §729.55 120 tons, 17 cwt., 3 qrs., 20 lbs. merchandize, at fifteen cents, 18.13 747.68 Amount due the state, January 1, 1849, after deduct¬ ing the amount paid on account in July, 1849, §10,694.63 4% 42 [Note .—By reference to the supplemental return of July, 1849, it will appear that the amount of that return is seven hundred and eighty-seven dollars and sixty-eight cents. In making up that amount some omissions of passengers on the Railroad in 1849 were included. We’have deducted these from the amount of the credit, so as to show the amount still due to the state up to Janu¬ ary 1,1849.] For the purpose of giving a general view of the whole receipts of the state from the Delaware and Raritan Canal and the Cam¬ den and Amboy Railroad and Transportation Companies from 1832 to 1848, inclusive, we annex the following table. The first column shows the amount paid to the State Treasurer for each year. We may remark that the amounts set down for each year was not all paid within the year, in consequence of the dividend for the last half year not being declared or payable until a few days after the year had closed; and also, in conse¬ quence of the transit duty for the last quarter not being ascer¬ tained till the commencement of the next. The dividend on one thousand shares of the stock being inclu¬ ded in the guarantee of thirty thousand dollars, has generally been retained until the close of the year, and paid in the early part of the succeeding year. We made acareful examination to ascertain atwhattime the tran¬ sit duties and the dividend on the one thousand shares of the stock exceeded the guarantee of thirty thousand dollars, and refer to the second column in the table as showing that in 1836, they first ex¬ ceeded it by two hundred and forty-one dollars and forty and a half cents; that in 1837 they again fell short, and in 1838 they again exceeded it, and have so continued to the present time. The second column also shows the whole amount due the state for each year, (except for the omissions heretofore referred to in this report) from all sources, viz: transit duty on Railroad and Canal, guarantee, dividends and interest on bonds. Statement showing the sums due and paid to the state of New Jersey, year by year, from the Delaware and Raritan Canal and the Camden and Amboy Railroad and Transporta¬ tion Companies, as returned to the State Treasurer, from 1832 to 1848, inclusive. Ve.. Treasurer’s ac 1832 i Dolls. Cts. 1,150.68 Dolls. Cts. Transit duty on Railroad, from 17th December to 31st De¬ cember, 1832, 1,150.68 1833 Transit duty on Railroad, 11,897.77 Dividend on 1,000 shares stock, 6,000.00 Balance, guarantee, 1,212.23 Dividend on 1,000 shares stock, 6,000.00 36,000.00 36,000.00 1834 Transit duty on Railroad, 11,801.38 Dividend on 1,000 shares stock, 6,000.00 Balance, guarantee, 12,198.62 Dividend on 1,000 shares stock, 6,000.00 36,000.00 36,000.00 1835 1 Transit duty on Railroad, 16,364.04f Dividend on 1,000 shares stock, 6,000.00 Balance, guarantee, 7,365.95| Dividend on 1,000 shares stock, 6,000.00 36,000.00 36,000.00 1836 1 Transit duty on Railroad, 18,241.40| Dividend on 1,000 shares stock, 12,000.00 Dividend on 1,000 shares stock, 12,000.00 42,241.401 42,241.401 44 STATEMENT—coBiinaerf. Year. ISeS Amount due as appears by the returns made to Stale Treasurer for Transit Duty and Guarantee, Dividends and Interest. 1837 Dolls. CU. DoIU. Ct3. Transit duty on Railroad, 16,142.35i Dividend on 1,000 shares stock, 8,000.00 Balance, guarantee, 5,857.64-^- Dividend on 1,000 shares stock, 8,000.00 38,000.00 38,000.00 1838 Transit duty on Railroad, 14,433.59 Supplemental return ditto, 3,783.25 Transit duty on Canal, 5,579.07 Dividend on 2,000 shares stock, 20,000.00 43,796.5l| 43,796.51 1839 Transit duty on Railroad, 20,110.77 Transit duty on Canal, 5,024.31 Dividend on 2,000 shares stock, 14,000.00 39,141.08jj 39,141.08 1840 1 Transit duty on Railroad, 17,924.57 Transit duty on Canal, 6,173.75 Dividend on 2,000 shares stock, 12,000.00 Six months’interest on $17,000 bond, to August, 510.00 36,608.32jj 1841 Transit duty on Railroad, 18,539.82 Transit duty on Canal, 6,219.17 Dividend on 2,000 shares slock, 12,000.00 1 year’s interest on $17,000 bond, 1,020.00 37,778.99 \ 37,778.99 45 STATEMENT— continued. VC. Amount |ai(], Treasurer’s ac 1842 Bolls. Cts. Transit duty on Railroad, 18,546.014 Transit duty on Canal, 6,588.69* Dividend on 1,000 shares stock, 12,000.00 1 year’s interest on @17,000 bond, 1,020.00 38,154.991 38,154.704 1843 Transit duty on Railroad, 19,679.71 Transit duly on Canal, 7,285.44 Supplemental return, (Railroad), 6,189.77 Dividend on 2,000 shares stock, 14,000.00 1 year’s interest on @17,000 bond, 1,020.00 48,174.91 48,174.92 1844 Transit duty on Railroad, 23,935.85 Transit duty on Canal, 10,547.01 Dividend on 2,000 shares stock, 16,000.00 1 year’s interest on @17,000 bond, 1,020.00 51,502.85 51,502.86 1845 Transit duty on Railroad, 26,853.57 Transit duty on Canal. 13,124.38 Dividend on 2,000 shares stock, 18,000.00 1 year’s interest on @17,000 bond, 1,020.00 58,997.93 58,997.95 1846 Transit duty on Railroad, 28,414.49 Transit duty on Canal, 11,128.62 . Dividend on 2,000 shares stock, 20,000.00 1 year’s interest on @17,000 bond, 1,020.00 60,563.11 46 STATEMENT—con«iMtte(f. Vea. Amount paid, Treasurer’s ac 1 1847 I Dolls. Cts Transit duty on Railroad, 33,017.02 1 Transit duty on Canal, 20,591.96 1 Dividend on 2,000 shares stock, 24,000.00 1 year’s interest on $17,000 bond, 1,020.00 78,628.98 78,628.92 1848 Transit duty on Railroad, 34,229.68 I Transit duty on Canal, 19,327.13 1 Dividend on 2,000 shares stock, 24,000.00 1 1 year’s interest on $17,000 bond, I up to August, 1848, 1,020.00 78,576.82 78,576.81 761,316.52 FOURTH AND FIFTH CHARGES. The fourth is “ That the returns made to the Treasurer’s office have been false and fraudulent.” The fifth is “ That the Company or its managers are largely indebted to the state on that account.” The material facts in connection with the above charges have already been stated in this report. They require, therefore, but little additional notice and may be disposed of in a few words. With the exception of the fraud imputed in the fourth charge, they are both mere consequences or deductions from the three first charges in the pamphlet, already considered. If more passengers and merchandize, liable to transit duty, have been carried by the Joint Companies than have been re¬ turned to the State Treasurer for transit duty, then of course, those returns are not true, to the extent of the difference, because 47 they purport to return all the passengers and freight liable to duty. We have already shown that the returns to the state are defec¬ tive to some extent, both as respects passengers and merchandize. But that they are false and fraudulent intentionally, or in a crimi¬ nal sense, we do not believe. That there have been errors, omissions and neglect, there can be no doubt. We have not, however, discovered any fact during the whole of the investigation that induces us to believe that either of the treasurers of the Joint Companies intended or desired to commit any fraud upon the state by their returns; on the contrary, we are satisfied by the facts and the evidence, that those gentlemen intended to have their returns to the state correct, and that they supposed and believed that they were so. The returns for transit duty are prepared or made up from the books, for the officers whose duty it is to verify and send them to the State Treasurer. We have already, in a previous part of this report, stated how and why they are defective. Receipts and Dislursements of the Joint Companies. The state of New Jersey, as a stockholder, is deeply interested in the faithful administration of the fiscal affairs of the Joint Com¬ panies. The integrity of that administration is directly impeached by the NINTH, TENTH, AND ELEVENTH CHARGES. The ninth is “ That a large proportion of the earnings of the machinery of the Company has never reached the Company’s treasury.” The tenth is “ That large sums which have reached that treas¬ ury, have subsequently been abstracted therefrom.” The eleventh is “ That the accounts rendered to the stock-, holders have, throughout, been falsified to cover those abstrac¬ tions.” These charges deeply affect the pecuniary interests of the stockholders as well as the private character of the individuals who direct and control the affairs of the Joint Companies. We had every inducement, therefore, for close and careful scrutiny of the facts connected with this branch of the investigation. In order to ascertain whether the whole amount of the earnings and income of the Companies had found their way into the treasury, we carefully examined the original way-bills, manifests, vouchers, statements, and books of entry. We kept in view the different lines, boats and other sources of revenue, and traced their proceeds into the books. By the original papers, we calcu¬ lated the true amount of the current receipts, and then traced the proper entries for them up to the books of the two treasurers. This course of examination was pursued for various periods of time, during the whole of the operations of the two Companies, thereby testing the general accuracy of the books. It would have been impossible, within any reasonable limit of time, to have sub¬ jected all the original vouchers to such a course of inspection. In addition, as appears by the testimony, several of the agents and book-keepers were examined on the subject of receipts and disbursements, and the correctness of the books and accounts. The result was that we found the various earnings, receipts and revenues of both Companies correctly entered in the books and accounted for by the treasurers, with the exception of the sum of seven thousand two hundred and twenty-seven dollars and nine¬ ty-four cents, part of the net receipts from steam-towing, which was paid out by Mr, Gatzmer, the principal agent in Philadelphia, on account of expenses incurred by the steamer Rainbow, on the Delaware river in 1842-’3. This sum does not appear upon the abstract book, nor in the treasurer’s book. The particulars of the transaction will be found in Mr. Gatzmer’s testimony. The net receipts from steam-towing all pass through his hands. • The same course was pursued with respect to disbursements. The original vouchers, receipts and evidences of payments, were called for, examined and compared with the entries in the books. When the precise object of the expenditure did not appear upon the face of the voucher, parol testimony was resorted to for ex¬ planation, as will appear in the evidence. The day books were then compared with the ledgers, and 49 these with the abstract and treasurer’s books. The expenditures charged to the incidental account, and some others of the like indefinite character, were examined with care, to discover if any of them were irrelevant or improper. ' The testimony of Mr.Gatzmerand the statement of Gen. Cook, the engineer of the Railroad, presented under oath, may be espe¬ cially referred to, with respect to the disbursements generally of the Railroad Company; the nature of some of them; the reason for them; and the cause of the increased amount in the last few years, as compared with earlier periods. The expenditures of the last named Company for repairs and improvements upon the road, have been very heavy during the last few years. The statement of Gen. Cook will also show the present condition of the road. It is difficult, if not impossible, to limit or even properly esti¬ mate the necessary and often unexpected outlays of money re¬ quired for a railroad doing a large passenger and transportation business. Within the last two years, the Canal Company, in addition to or¬ dinary expenses for repairs, have been subjected to an expenditure of about one hundred and ten thousand dollars, in the'construction of two additional outlet locks; one at Bordcntown, and the other on the Feeder at Wells’s Falls, for the purpose of forming a con¬ nection with the Delaware division of the Pennsylvania Canal. The statement of Ashbel Welch, the engineer of the Canal Company, may be consulted for information respecting the expen¬ ditures of that Company for these and other improvements and repairs along the line of the Canal. As a general remark, applicable to both Companies, we must say that we did not, in the course of our investigation, discover any expenditures by either of them, of an extraordinary or un¬ usual character, or that require any particular notice or com¬ ment. They all appear to have been made by the authority of the directors, in the prosecution of the regular and legitimate business of the Companies. We found various charges for legal expenses, and some others of a like character, resting entirely within the discretion of the 5 board of directors. We do not consider it our duty to question the proper exercise of that discretion, by noticing particularly, expenditures of that description. We did not in any instance find that money had been ab¬ stracted from the treasury, as alleged in one of the charges. All the appropriations and disbursements of money appear to have been made by competent authority, and for the general benefit of all the stockholders. We do not wish to be understood by the preceding remarks, as saying that in the course of our examination of the original papers and books, we did not discover any mistakes, errors or discrepancies. That would not be true. We did occasionally meet with them. They were, however, small in amount and immaterial in their character. Many of them were manifestly mere clerical errors and mistakes. None of them appeared in¬ tentional. Some of them will be found noticed in the evidence. These small errors and mistakes, instead of shaking, rather con¬ firmed our belief that the books might be relied upon as authen¬ tic records of the business transactions of the Companies. We endeavored to make our examination thorough and con¬ clusive ; anti so far as we were enabled to ascertain the facts, it appeared to us that the treasurers of the two Companies had, with scrupulous care and fidelity, charged themselves with and ac¬ counted for all the receipts and earnings of the Companies, with the exception of the item from steam-towing, before noticed, paid out by Mr. Gatzmer; and perhaps, with the further excep¬ tion of a discrepancy of four hundred and thirty-eight dollars and ninety-two cents, in the accounts of the two treasurers, which oc¬ curred in 1836, the cause of which we could not discover. We have thus briefly detailed the facts in relation to the charges above stated, to the best of our information. The truth of the charges must be judged of by those facts. The earnings derived from steam-towing, as part of the ma¬ chinery of the Companies, are referred to in the pamphlet as never having reached the treasury of the Company. We do not so find the facts. The stockholders of the Com¬ panies have had the benefit of those earnings. They are ac- 51 counted for by the treasurer, with other receipts, with the single exception above mentioned. This steam-towing account we will present hereafter. Railroad Receipts and Disbursements. We have prepared the following series of tables, marked num¬ bers six, seven and eight, for the purpose of exhibiting in that form the annual receipts, disbursements, and balances of the Railroad Company. The precise object of each table will appear on its face. We will, however, append to them a few explanatory remarks. 52 TABLE VI. Shoioing the Annual Current Receipts and Dishurscmenls of the Camden and Amboy Railroad Company from the first day of October, 1832, to December 31s/, 1848, with the net balance at the end of each year, as the same are entered in and appear upon the General Abstract Book. Ke... ■■ Expen.,itu,cs. B.,.n„ee. 1833 $518,364.57 $311,405.51 $206,959.06 1834 514,253.30 264,475.48 249,777.82 1835 659,467.40 299,004.13 360,463.27 1836 783,969.36 353,677.53 430,291.83 1837 732,138.96 378,391.10 353,747.86 1838 755,083.88 340,320.58 414,763.30 1839 670,328.86 283,418.43 386,910.43 1840 565,540.69 244,636.59 320,904.10 1841 678,711.79 306,029.67 372,682.12 1842 645,700.20 279,961.02 365,739.18 1843 713,369.50 322,124.60 391,244.90 1844 780,709.17 379,234.92 401,474.25 1845 882,751.54 560,408.22 322,343.32 1846 1,022,253.10 606,949.54 415,303.56 1847 1,150,383.26 741,917.96 408,465.30 1848 1,152,263.07 662,920.59 489,342.48 53 The foregoing table vpas prepared from the general abstract book without discriminating between the civil year and the former fis¬ cal year of the Companies. Thus, the years 1833 and 1834, in the table, are civil years; 1835 is a fiscal year, terminating No¬ vember 30, 1835, and contains, therefore, but eleven months. From 1835 to 1842, inclusive, the fiscal year is unrepresented; 1843 commences December 1, 1842, and terminates December 31,1843, and contains, therefore, thirteen months. The remain¬ ing years of the table are civil years. After 1843, as before stated, the fiscal year was adapted to the civil year, and as the table embraces the whole of the current receipts and disburse¬ ments of the Railroad, from its commencement to 1848, inclu¬ sive, this disregard of fiscal and civil years in the table, can make no difference in the general result, and in reality renders it more simple. It is true that the table will not, on that account, agree with some of the reports of the directors to the stockholders, upon which some of the charges against the Companies are based. The eleventh charge, above considered, directly impeaches, the truth of those reports. We have shown above that the facts as ascertained by us are at variance with that charge. Some of these reports to stockholders are adapted to the fiscal and some to the civil year. In our remarks, in connection with the passenger and trans¬ portation tables, wo have endeavored to account for and recon¬ cile discrepancies in reports to stockholders upon those subjects. Those remarks will apply equally well in the general to the ap¬ parent discrepancies in the reports to the stockholders, with re¬ spect to the receipts and disbursements of the Joint Companies. Our table shows the whole of the current receipts and expenditures of the Railroad Company taken from the proper records. We have carefully examined the several reports made to the stockholders and compared them with the proper books and vouchers. And were it advisable or proper to swell this report with additional explanations, it could readily be shown that, with the exception of some clerical errors and manifest mistakes in extracting from the general abstract book, the several reports to the stockholders respecting receipts and 5* 54 disbursements, correspond with our tables, and substantially agree with each other. Our attention was particularly directed to the large discrepancy between the reports of 1842 and 1848, respecting the receipts of the Railroad for 1841. There is no difficulty in accounting for the variance. The report of 1842 is correct. The report of 1848 gives merely the regular monthly returns of receipts from Railroad as entered in abstract book, and neglected to add an amount for extra earnings on Railroad that came in at the end of the fiscal year; and also, three other items of large amount received from the Philadelphia and Trenton Railroad, the New Brunswick Company, and the Post Office Department, altogether amounting to about one hundred and twenty thousand dollars, the difference between the two reports. These other items are included in the report of 1842. They were entered in the general abstract book at the time the report of 1842 was made, but not in the monthly abstracts or statements. It would appear that the clerk who prepared the report of 1848, for the year 1841, consulted the monthly abstracts only. 55 TABLE VII. Showing the General Receipts of the Treasurer of the Railroad Company from current Net Earnings and Extraneous Sources, including Dividends on the Philadelphia and Trenton Rail¬ road Stock, and Payments to him by the Treasurer of the Canal Company towards the Semi-annual Dividends, from 1833 to 1848, inclusive, arranged according to the Fiscal Year. 1833| 1834 1835 1836 1837 1838 1839 1840 1841 1842 1843 1844 1845 1846 1847 1848 Dollars. cIs. | Dollars, oti. 206,959.06;. 249,777.82:. .360,463.27!. 430,291.831. •353,747.86 . 414,763.-30. •386,910.43. 320,904.1016,500.00 •372,682.12'.33,000.00 365,739.1S;33,000.00 •391,244.90;.38,500.00 401,474.25|44,000.00 322,343.3249,500.00 415,-303.50j55,000.00 408,405.3066,000.00 489,342.48:66,000.00 11,170.00 100,766.18 64,653.43 3,301.50 45,410.90 23,285.17 6,482.06 3,388.38 20,204.02 95,489.16 54,210.58 46,000.00 38,698.32 20,000.00 25,000.00 25,000.00 90,000.00 115,000.00 70,000.00 85,000.00 20,000.00 Tolal Receipts. 206,959.06 249,777.82 360,463.27 4-30,291.83 353,747.86 425,933.00 533.676.61 440,755.05 428.983.62 469,150.08 478,030.07 541,956.31 490,231.70 560,567.58 654,954.46 029,553.06 7,255,031.38 Total payments, 7,201,216.80 Balance in the hands of Treasurer, Jan. 1, 1849, 53,814.58 56 The treasurer of the Railroad Company acts also as treasurer of the Joint Companies, so far as relates to receipts and disbursements of money, more particularly concerning the Companies jointly; such as the receipts of money from the treasurer of the Canal Compa¬ ny towards dividends ; the receipt of dividends on the Philadel¬ phia and Trenton Railroad stock held by the Joint Companies, and receipts from certain extraneous sources; and also in the payment of interest on loans, the payment of dividends, and for extraneous purposes. All of which are shown year by year in the two foregoing tables. Table 7, shows in the first column the net earnings of the Railroad Company, after paying current expenses; the second column shows the dividends received upon the Philadelphia and Trenton Railroad stock ; the third column shows the receipts from extra¬ neous sources; the fourth column shows the receipts from the treasurer of the Canal, towards dividends; and the last column shows the total receipts by the treasurer of the Railroad. The other table shows the extraneous disbursements, pay¬ ments of interest, payments of dividends, total payments, bal¬ ance on hand of each year’s business, and the balance on hand after being added to or subtracted from the balance of the prece¬ ding year. Both tables commence with the year 1833, (in which year is also comprised the business of 1832,) and show in the main the operations of each succeeding year to 1848, inclusive. Up to 1840, the treasurer kept a separate account of receipts and ex¬ penditures, called a construction account, which appears to have been laid before the stockholders at that time, and a balance found due the treasurer of one hundred and seventy thousand and twenty-five dollars and fifty cents on this account. At this time there was also a balance due from him to the Company on his “ traveling account,” as it is called, of one hundred and forty-six thousand eight hundred and twenty-three dollars and twelve cents; which, being deducted from the balance due him on the construc¬ tion account, left standing to his credit the sum of twenty-three thousand two hundred and two dollars and sixty-eight cents, which amount, after the said settlement, was placed to his credit in his regular or traveling account. The construction account 58 was at that time closed, although afterwards re-opened in ano¬ ther form. The Commissioners examined into the character of the extra¬ neous disbursements, and are satisfied with their correctness. It will be observed that, in the year 1835, the amount is large. This is owing to the fact, that in that year the sum of one hundred and thirty-one thousand and seventy-one dollars and twenty-nine cents was paid by the treasurer, or rather transferred to the construc¬ tion account, which account received a corresponding credit therefor. This, it appears, was done by resolution of the board of directors. For the year 1839, the amount in the same column is also large. This is owing to the fact, that in that year the construc¬ tion and traveling accounts were adjusted, as before stated, and the corresponding entries made. The column of payments of interest comprises all the payments made for interest, (so far as the treasurer’s accounts show,) up to January 1,1849. The column under head of payments of dividends, shows the whole of the dividends declared and paid by the Joint Companies up to the same period. The last column of the table of receipts shows that the whole receipts of the treasurer of the Railroad, up to January 1,1849, amounted to the sum of $7,255,031.38 And the whole disbursements to 7,201,216.80 Leaving in his hands, Jan. I, 1849, the sum of $53,814.58 Whieh balance agrees with the treasurer’s book. Receipts and Dishtirsements of Canal. The following table, No. 9, shows the whole amount of receipts and expenditures of the Canal Company, from its organization to January 1, 1849. It is particularly explained by the remarks which follow it. TABLE IX. 60 Explanation of table 9, of the receipts, payments and balances of the Delaware and Raritan Canal Company. 1st. The table gives a detailed statement, as far as practicable, of the pecuniary transactions of the Company, from its organiza¬ tion in 1830, to January 1, 1840, when a general statement and settlement of all previous transactions was made by the board of directors, and the cost of construction was ascertained. The first column contains the date; the second, third and fourth the current receipts, designated as tolls, rents, and other sources, and total current; fifth, receipts from capital loans, and other receipts; the receipts from capita^ and loans being each carried into the table in one sum for the whole period, from 1830 to 1840. The sixth column contains the whole amount of receipts from all sources for the same period in one sum. The seventh column contains the whole amount of disbursements for construction for the whole period in one sum, the amount due from the Camden and Amboy Railroad and Transportation Company, and the cur¬ rent disbursements for each year after the opening of the naviga¬ tion on the Canal, as nearly as they can be assigned to each year. The eighth column contains the amount paid for dividends, and when paid. The ninth column contains the amount paid for construction, current disbursements and dividends prior to 1840, in, one sum; and the tenth column contains the balances unexpen¬ ded on the first day of January, 1840, and the kind of funds of which they consist. For the period after January 1, 1840, the table shows the date, tolls, other current receipts, total current receipts from rent and other sources, total receipts, disbursements of all kinds, dividends, total disbursements and payments, and the balances unappropria¬ ted at the end of each year, for each fiscal year up to January 1, 1849, in the order above mentioned. The balances for each year after 1839 are ascertained by adding the cash balance for the previous year to the receipts of all kinds for the current year, and deducting the sum of all the disbursements and payments for the current year therefrom; but in ascertaining the balances, the sums of eighteen thousand two hundred and ninety-three dollars and eighty-six cents, due from the Camden and Amboy Railroad 61 and Transportation Company, and the sum of one thousand nine hundred and ten dollars for unpaid notes are not carried forward ; all subsequent receipts from those sources are carried into the column of receipts from other sources, for the year in which they were received. The item of two million eight hundred and forty-four thousand two hundred and thirty-eight dollars and eight cents, for cost of construction in column seven, is one hundred and thirty-five dollars and five cents more than the amount reported by the directors in their statement of 1840, which is owing to a disa¬ greement between the accounts of the secretary and treasurer and loan agent of the Company; the accounts of the secretary being those by which the statement was made, and makes the amount received from loans three hundred and eighty-seven dol¬ lars and thirty-five cents too small, and the cash balance, January Ist, 1840, two hundred and fifty-four dollars and thirty cents too small; the difference between which makes the above difference in the cost of construction. The Commissioners, not having examined the cost of construction, have not as yet been able to ascertain the cause of the disagreement between the accounts. The sum of eighteen thousand two hundred and ninety-three dollars and eighty-six cents in the columns of receipts, disburse¬ ments and balances, as due from the Camden and Amboy Rail¬ road and Transportation Company, is an amount due from said Company to the Delaware and Raritan Canal Company, for iron, timber and real estate, sold to the former Company by the latter, and the interest of the two Companies being the same, is not carried forward with the cash balance; five thousand dollars, however, of said sum was paid to the Canal Company in 1841, and carried into the column of receipts from other sources for that year. Of the disbursements entered in the column of disbursements from the first of January, 1840, to first of January, 1849, one hundred and ninety-two thousand three hundred and eleven dol¬ lars and eighty-eight cents is charged to capital. Said sum has not been placed in a separate column, showing the amount for each year, because it would have required considerable labor to 6 select the items from the several accounts of disbursements, and would show no result which is not as satisfactorily shown by a mere statement of the amount. The last balance in the column of balances, forty-six thousand three hundred and eighty-eight dollars and fifty-four cents, is the true balance of cash on hand, January 1st, 1849, and agrees with the treasurer’s books. The table is arranged to correspond with the business, or fiscal year, as the accounts are kept on the Company’s books, running from the 30th of November in one year, to the 1st day of Decem¬ ber in the next, until 1844, after the beginning of which year the fiscal year corresponds with the civil year; the disbursements of December, 1839, are included in the accounts for 1839, so as to include all previous disbursements in the settlement of 1840; and the accounts of receipts and disbursements for 1843, include the months of December for both 1848 and 1843. The items contained in the table have all been ascertained by the Commissioners, by the examination of the books of the Com¬ pany, and a comparison of as many of the original vouchers with the books, as they deemed requisite to verify the books, with the exception that the cost of construction was ascertained by adding the whole amount of the original receipts of the Company prior to 1840, together, and deducting therefrom the sum of all the pay¬ ments for other purposes besides construction, and the balances unexpended on the 1st day of January, 1840, therefrom; the Commissioners not being able for want of time, as already stated, to enter into a detailed examination of the cost of construc¬ tion. The item of one million four hundred and ninety-six thousand dollars in the fifth column of receipts from capital, is the whole capital stock of the Canal Company, with the exception of four thousand dollars, which was paid in in 1840, and carried into the column of receipts from other sources for that year. The sums entered in the annexed table as paid for dividends, were paid to the treasurer of the Camden and Amboy Railroad and Transportation Company, who acts as agent for the payment of the dividends of the Joint Companies to the stockholders. The following table shows the cash balance in the hands of the 63 treasurers of both Railroad and Canal, at the end of each year, as well as the amount on hand belonging to the Joint Companies at the same period of time. It will be observed that for several years, no amount is set down in the table as in the hands of the treasurer of the Canal for those years. This is owing to the fact that up to 1840, the treasurer of the Canal kept the accounts of construction and the accounts for current receipts and expen¬ ditures together; and the balance of net earnings could not be well ascertained. But at the close of 1839, a settlement of the construction account took place, as already stated; after which the balance of cash on hand at the close of each year appears in the table. 64 TABLE X. Showing year hy year ihe net balance in the hands of the Trea¬ surer of each Company, and also the whole balance on hand belonging to ihe Joint Companies. Year. 'wongin| M tUe Joint 1833 32,959.06 Dollars. Cents. Dollars. Cents. 32,959.06 1834 108,736.88 108,736.88 1835 25,755.77 25,755.77 1836 5,225.24 5,225.24 1837 692.60 692.60 1838 23,353.60 23,353.60 1839 Minus .30 12,588.77 12,589.07 1840 15,863.15 7,903.95 2-3,777.10 1841 43,247.09 38,227.16 81,474.25 1842 31,725.06 51,647.77 83,372.83 1843 78,898.09 47,979.35 126,877.44 1844 115,315.62 45,606.36 160,921.98 1845 94,260.71 36,740.95 131,001.66 1846 107,141.05 26,978.38 134,119.43 1847 75,618.07 30,253.49 105,871.56 1848 53,814.58 46,388.54 100,203.12 65 Steam Towing. In the year 1835, the Joint Companies establislied a line of steamboats for the purpose of towing vessels between the entran¬ ces of the Canal and the cities of New York and Philadelphia, and intermediate points. Three steamboats were employed in this branch of business in the year 1835, and the number was in¬ creased with the increase of transportation on the Canal to eight or ten. Most of the boats employed were owned by the Joint Companies, but occasionally boats belonging to other persons were chartered for that purpose. When the line of tug-boats was first established, the New Brunswick Steamboat and Canal Transportation Company was largely connected with the Joint Companies in business through the Canal and over the Railroad, and had an office for the transac¬ tion of their business in New York, at which their general book¬ keeper and several of their officers and agents were stationed; they also had an agent in Philadelphia. The Joint Compa¬ nies made an arrangement with the said New Brunswick Com¬ pany, by the terms of which the officers of the latter Com¬ pany at New York, took charge of the tug-boats belonging to and furnished by the Joint Companies, received their earnings, paid all their current disbursements, chartered additional boats when required, repaired the boats in winter, preparatory to the next year’s business, and paid the expenses out of the receipts for towing; and at the end of the year struck the balance of the cur¬ rent account, which they carried to the debit or credit of the Joint Companies. The balances were struck without taking into consideration any of the credits made to the New Brunswick Company, in the general settlement of the whole business made in 1846, which will be hereinafter noticed. The disbursements were generally made by William T. Ander¬ son, at New York; and some of them by Abraham S. Neilson, at New Brunswick; and at Philadelphia, by William H. Gatz- mer. The earnings were received by different persons at Fair- mount, Philadelphia, Princeton, New Brunswick and New York, all acting in this respect as agents of the New Brunswick Com¬ pany: and the accounts of the towing being kept in the general books of the latter Company. The business was conducted in the same manner until the 1st 6 * of May, 1846, when the Joint Companies took charge of the tow¬ boats and put this department in _charge of their principal agent in New York, under whose management it continued until Sep¬ tember 1st, 1848, when an association was formed between the Joint Companies and George W. Aspinwall, of Philadelphia, for conducting said business in partnership; each furnishing one half of the tow-boats required, and running the hazards of their loss. The earnings of the boats were received as a common fund ; all expenses, charges and damages, paid out of the same, and each party received one half of the net profits, or paid one half of the net losses, and each party having an equal share in the direction of the business, which was managed by Mr. Aspinwall for him¬ self, and William H. Gatzmer for the Joint Companies. This as¬ sociation still continues. Our attention was particularly directed to this branch of the business of the Joint Companies, by the ninth charge, “That a large portion of the earnings of the machinery of the Company has never reached the Company’s treasury.” We, therefore, ex¬ amined this subject very minutely. Having examined every original voucher for disbursements made while the business was managed by the New Brunswick Company, and compared them with the entries in the books, and also examined the accounts of receipts for the same periods, and traced them through their several entries until we ascertained the net balance for each year from 1835 to May 1st, 1846, inclusive; and likewise, after the New Brunswick Company ceased to have charge of the business, from May 1st, 1846, to January 1st, 1848. We also examined William T. Anderson, the principal book-keeper of the New Brunswick Company, and William H. Gatzmer, as witnesses, in relation to this subject, who fully detailed the manner in which it had been conducted. The vouchers and accounts of receipts all agree with the entries in the books, with the exception of some slight errors, which all appear to have been afterwards corrected for the whole period from January 1st, 1835, to January 1st, 1848. The disbursements all appear to have been made for objects properly connected with the business, and as far as can be dis¬ covered from the books or the testimony, the receipts have been properly accounted for. "The New Brunswick Company appear to have acted merely 67 as the agents of the Joint Companies in the management of the steam towing. We cannot ascertain whether any compensation, to be paid the former Company for taking charge of it, was fixed upon in advance; neither Mr. Anderson nor Mr. Gatzmer have any recollection of hearing of any during their connection with the business, and the presumption is that no compensation was then agreed upon. Mr. Anderson testified that the books exam¬ ined by us, contained true accounts of all the receipts and dis¬ bursements for steam towing, while he kept them, from 1837 until the Joint Companies took charge of the business, May 1st, 1846; and that all the steam towing done for the New Brunswick Company, or any other Company, or for individuals, was properly charged and accounted for to the best of his knowledge. Mr. Gatzmer also testified that the New Brunswick Company charged themselves with all the towing done by the tug-boats for them at fair prices. The New Brunswick Company ceased to have charge of the steam towing. May 1, 1840, as before stated. In October, 1846, a settlement of the business was made for the whole period while it was managed by the Company, by - Mr. Gatzmer and Mr. Anderson, with the approbation of Edwin A. Stevens, the superintendent of the Camden and Amboy Railroad Company. * The proceeds of the business during that period will appear by the annexed statement of that settlement. The balances therein stated due from and to the Joint Companies, agree with our in¬ vestigation. The balance due the Joint Companies for net gain by steam towing in 1836, 1837, 1840, 1841, 184S, 1843, 1844, “ 1845, 1846, (amount received by New Brunswick Company,) 15,350.50 8,289.51 7,031.90 16,215.57 18,816.96 13,542.01 8,804.09 24,670.26 V,04.1.7a 4,313.67 1,325.09 $115,903.88 68 Amount brought forward, 8115,903.88 Deduct loss on steam towing in 1835, 2,359.46 $113,544.42 Paid by the New Brunswick Campany to Camden and Amboy Company, De¬ cember 1,1843, $27,851.67 Paid by the New Brunswick Company to Camden and Amboy Company, De¬ cember 31, 1844, 10,000.00 Paid by the New Brunswick Company to Camden and Amboy Company, De¬ cember 31,1845, 11,442.00 - 49,293.67 Balance, $64,250.75 At this settlement the following credits were made by the Joint Companies to the New Brunswick Com¬ pany: One half of general expenses from 1836 to 1845, $10,926.77 Balance of rent account, 1839, 2,874.19 Steamboat charters, 1845, 1,825.62 One half rent of office, 1843, 75.00 One half salaries, freight barge account, 1843 to 1845, 1,256.66 One half general expenses from January 1 to May 1, 1846, 323.99 One half salaries from January 1 to May 1, 1846, 216.66 Amount paid for repairs of steamboats, from 1st January to May 1, 1846, 23,315.92 Wharfage paid by A. S. Neilson, in 1842, 500.00 “ » “ “ » 1846, 500.00 Charter of steamboat Hornet from August, 1841, to August, 1846, 17,000.00 - 58,814.81 Balance due the Joint Companies, which was paid in cash, $5,435.94 69 Mr. Anderson testified that he considered that all those credits were fairly made to the New Brunswick Company, on the steam towing account; that the duties required of the clerks in the general office of the New Brunswick Company, on account of the steam towing, were fully equal to the duties required of them by the affairs of the Company; and that, therefore, one half of the items of general expenses and salaries should be charged to steam towing; that the items of balance of rent account, rent and wharfage, and charter of steamboats, were proper charges to the steam towing, and to that account alone; that the credit of twen¬ ty-three thousand three hundred and fifteen dollars and ninetj'- two cents, for repairs of steamboats in 1846, was for repairing the steam tow-boats, preparatory for the business of 1846; that the credit of seventeen thousand dollars was for charter of the steamboat Hornet, which belonged to the New Brunswick Com¬ pany, and was used as a tow-boat; and that none of these credits had been previously made to the New Brunswick Company. The testimony of Mr. Gatzmer was to the same effect, with regard to several of the facts of which he was cognizant; and he also testified that he considered the price paid for the charter of the Hornet a fair one; that according to his judgment, he business of steam towing had been as economically managed as if the Joint Companies had employed clerks to attend to it in an office of their own; and that from his knowledge of the affairs of the Joint Companies, the steam tow-boats were never looked to as a source of profit, but were established to render the communica¬ tion with the Canal complete. The price charged to the New Brunswick Company for towing the barges of the Merchants’ Line, was fifty dollars per barge, on both the Delaware and Raritan rivers, from 1836 to 1842; thirty- six dollars and sixty-six cents from 1843 to 1848; and twenty- five dollars in 1849. And for towing the barges of the Swiftsure Line fifty dollars, in both rivers, in 1838; forty-one dollars and sixty cents in 1840; thirty-three dollars and thirty-three cents from 1840 to 1848; and twenty-five dollars in 1849. Light barges of both lines generally paid one half of the above rates. The price charged for towing the coal barges of the New 70 Brunswick Company, was fifty dollars on both rivers. These barges carried from one hundred and fifty to two hundred tons. The price charged was nearly the same as that charged to tran¬ sient vessels. The amount charged for towing the barges of the Merchants’ and Swiftsure Lines, and the coal barges employed by the New Brunswick Company, from 1835 to 1849, inclusive, was two hundred and seventy-nine thousand two hundred and fifty-eight dollars and twenty-two cents. The prices charged for vessels carrying coal, varied at differ¬ ent times; in 1846 and 1847, it was thirty cents per ton from Philadelphia to New York, and twenty-five cents per ton from Bristol to New York; the rates have since been somewhat lower. From the testimony it appears that the New Brunswick Com¬ pany did not receive any compensation for the management of the steam towing, except the payment of clerk hire, salaries and office expenses, before mentioned, incidental to the business. It will be seen, however, by the statement of the settlement made in 1846, that the several balances of profits remained in the hands of that Company, until December 1,1843, before any payment was made to the Joint Companies; and that some advantage might have been derived from the use of the money. Mr. Gatzmer testifies that a portion of those balances remained in his hands, as he understood, subject to the draft of the treasurer of either Company, as he acted in the capacity of agent of both Companies at the same time, and that no use was made by the New Bruns¬ wick Company of the money in his hands. The operations of this department from May 1, 1846, to Jan¬ uary 1,1848, require no special notice; the vouchers agree with the accounts, and the disbursements appear to be made for ob¬ jects properly appertaining to the business. From our investiga¬ tion, this branch appears not to have been profitable to the Joint Companies at any time; but the employment of a regular line of steam tow-boats, owned either by the Companies or individuals, appears to be absolutely required for the successful prosecution of business through the Canal. A more full detail of the manner of transacting the business will be found in the testimony of Mr. Anderson and Mr. Gatzmer. 71 The whole amount of the net earnings of the steam tow-boats from 1835 to May 1,1846, while they were in charge of the New Brunswick Company, was fifty-four thousand four hundred and eight dollars and seventy-eight centsall which has been paid to the Joint Companies. The net earnings from May 1,1846, to January 1, 1849, were forty-thousand nine hundred and sixty-four dollars and eighty-two cents, which sum has also been properly accounted for. TWELFTH CHaaOE. “ That the statements furnished to the State Directors were fabricated for a purpose and cannot represent any slate of things standing, or that should stand, on the Company’s books.” Whether or not any statements, fabricated or otherwise, have been furnished to the State Directors, we have not considered it our duty to inquire. The charge, as it appears to us', has no con¬ nection with nor bearing upon the important facts intended to be elicited by this investigation. We have endeavored in this report to show what those facts really are, and how they appear upon the books of the Companies. They cannot in any way be affected or changed by former statements or reports. It is due to truth to say that we discovered nothing during the investiga¬ tion, going to show that any fabricated statements had been furnished to the State Directors. We pass the above charge, therefore, without further notice. Having disposed of the specific charges, w'e will now give the results of our examination of some of the special contracts of the Joint Companies, and other matters in which the state may be considered as interested. In doing this we may perhaps be com¬ pelled to repeat some matters which already appear in the report. We shall endeavor, as far as may be practicable, to avoid doing so, as we are sensible that the report is already more extended than it should be. In June last, the Commissioners called for copies of all special contracts and agreements of the Joint Companies with other Com¬ panies and individuals, with a statement in writing of their views and reasons for making and entering into such contracts and 72 agreements, inasmuch as this was a point of investigation par¬ ticularly pointed out and directed in the resolution originating the commission. In answer to that call, we were furnished, from time to time, with the original contracts, and also with several written state¬ ments, purporting to give the facts and the views of the Compa¬ nies in reference to several of the contracts and arrangements with other Companies. Some of these communications will be found in the appendix to this report; they will also be referred to as occasion may require, in the further remarks we may make. Loans of the Joint Companies. Pour loans have been made by the Companies since their union, for the purpose of raising funds for the construction of their works and for the purchase of stock in the Philadelphia and Trenton Railroad, besides an issue of bonds, in the nature of a loan, made in 1840. The first loan made by the Companies was one of eight hun¬ dred thousand dollars in 1833, at six per cent, interest, payable semi-annually on the first day of January and the first day of July, and redeemable in 1863. Certificates of this loan, amounting to two hundred and forty-eight thousand dollars, were purchased back by the Companies in 1834, and resold in 1837-’8 and ’9, during the construction of the branch road. The net amount received for the sale and resale of the certificates of this loan was eight hundred and thirty-tw'o thousand five hundred and thirteen dollars and twenty-seven cents. The second loan w’as an English loan of two hundred and ten thousand pounds sterling, made in 1834, at five per cent, interest, payable in London, on the first day of February and the first day of August, redeemable in 1864. The amount realized by the Company upon the loan was nine hundred and seventy-eight thousand two hundred and three dollars and seventy-three cents. The third loan was for two hundred and twenty-five thousand pounds sterling, made in London in 1837, at six per cent, interest, payable semi-annually, and redeemable in 1864. This loan was made for the purpose of constructing the branch road from Bor- 73 dentown to New Brunswick. The amount realized by the Com¬ panies upon this loan was one million twenty-three thousand four hundred and ninety-eight dollars and thirty-seven cents. The fourth loan was made in 1840, by the issue of bonds fol one hundred and eighty-five thousand five hundred pounds ster¬ ling, bearing interest at five per cent., payable semi-annually on the first of February and first of August, redeemable in 1808. The amount received by the Companies for this loan was eight hundred and twenty-four thousand four hundred and forty-four dollars and forty-four cents. The whole of which sum was paid for the purchase of five thousand five hundred shares of the stock of the Philadelphia and Trenton Railroad at one hundred and fifty dollars per share. The bonds of the Joint Companies for three hundred and sixty* six thousand nine hundred and sevenlj'-six dollars, bearing six per cent, interest, payable semi-annually on the first of March and September, redeemable in 1804, wore issued in 1810, for the pur¬ pose of paying to the stockholders of the Joint Companies, and the Philadelphia and Trenton Railroad Company, an extra dividend of a part of the earnings of the Joint Companies, which had been expended in constructing the works. The aforesaid bonds were disposed of in the following manner : Delivered to the stockholders of the Joint Companies, including the state, being eight and a half percent, on stock, §355.000 To stockholders of Philadelphia and Trenton Rail¬ road Company, three per cent, on nine thousand nine hundred and ninety-two shares of stock, 39,976 Lent to Camden Ferry Company, 37,500 Lent in 1849, to the New Brunswick Steamboat and Canal Transportation Company, 11,000 Sold by Joint Companies in 1849, 16,000 Still in hand of .Joint Companies, not issued, 14,500 §300,976 The nominal amount of the bonds of the Joint Companies out¬ standing and unpaid, is as follows : 74 1. American loan, |800,000.00 2. English loan of £210,000 sterling, 933,333.33 3. “ of £225,000 sterling, 1,000,000.00 4. Sterling loan of £185,500, 824,444.44 5. Bonds issued in 1840, 352,476.00 Total, ®3,910,253.77 The above calculation of the amount of loans, is made by esti¬ mating the dollar at the nominal rate of four shillings and six¬ pence sterling. The actual amounts received by the Companies for the loans made by them, are as follows: 1. For American loan, §832,513.27 2. “ English loan of £210,000, 978,204,73 3. “ “ “ of £225,000, 1,023,498,37 4. “ Sterling loan of £185,500, 824,444.44 5. “ Bonds issued in 1840, 351,954.75 §4,010,615.56 The proceeds of said loans appear by the books of the Compa¬ nies to have been disposed of as follows: Expended in the construction of Railroad, §1,379,951.33 “ “ “ of Canal, 1,325,294.15 “ in carrying on the coal trade, 117,000.00 Paid for five thousand five hundred shares Phila¬ delphia and Trenton Railroad stock, 824,444.44 Divided among stockholders of Joint Companies, 255,000.00 “ “ ■“ of Philadelphia and Trenton Railroad Company, 29,976.00 Loaned to Camden Ferry Company, (since paid,) 37,500.00 “ to New Brunswick Steamboat and Canal Transportation Company, 14,000.00 Received for bonds sold in 1849, for expense on account of Bel videre Delaware Railroad, 15,478.75 Expenses of making loans in England, 11,970.89 §4,010,615.50 75 The one hundred and seventeen thousand dollars employed in the coal trade, was expended in building boats and mining coal and carrying it to market, and the other expenses connected with the business, the proceeds of which were carried to the credit of the Companies, by the treasurer of the Railroad Company. This subject is more fully explained in another part of the report. The loan made to the Camden Ferry Company has since been paid, and the amount and interest carried to the credit of the Railroad Company by the treasurer. The loan of bonds to the New Brunswick Steamboat and Canal Transportation Company is still unpaid. The proceeds of the bonds sold in 1849, are retained as we are informed, as a fund to pay the expenses of surveys, &c., on the line of the Belvidere'Delaware Railroad. Conlracls with and Interest in the Philadelphia and Trenton Railroad. The large interest which the Joint Companies have in the Philadelphia and Trenton Railroad Company as stockholders, as already appears by this report, in addition to the very intimate relations existing between them by contract, requires a more par¬ ticular notice than we have yet given to that subject. For several years past, the Joint Companies have held five thousand five hundred shares of the stock of the Philadelphia and Trenton Railroad, being a majority of the capital stock of the Company. And by contracts now in force between the Compa¬ nies, their interests are very closely allied. The Philadelphia and Trenton Railroad Company was char¬ tered by an act of the legislature of Pennsylvania, approved Feb- ruar.y 23d, 1832, with a proviso attached to the last section, that the state may, at any time after the expiration of thirty years, have the privilege of purchasing the entire interest and property of the said corporation, at a just and reasonable valuation or ap¬ praisement, to be made in such manner as may at any time here¬ after be provided for by law. By the charter, the Company were limited to a charge of three 76 eeiils toll per mile for passengers, and five cents per ton per mile for merchandize. The act further provided, that the capital stock should not ex¬ ceed one million of dollars, nor the dividends twelve per cent, per annum ; and further, that whenever the dividends shall exceed six per cent, per annum, the said Company shall pay a tax of eight per cent, on all such dividends above six per cent, into the treasury of the state, for the use of the commonwealth. The road was constructed in pursuance of the charter, with a single track from Kensington to Morrisville. It is a matter of history, that the Company soon made the effort to extend their road across the state of New Jersey, so as to form another rail¬ road communication between Philadelphia and New York. . It would appear that the legislature of Pennsylvania favored this project; and to assist the Company in efl'ecting it, the follow¬ ing supplement to the charter was passed early in the year 1835. As the act is short, we will insert it at length: “ Supi’LEMEiVT to an act entitled ‘ An Act authorizing the Go¬ vernor to incorporate the Philadelphia and Trenton Railroad Company. “Sec. 1. Be it enacted by the Senate and House of Repre¬ sentatives of the commonwealth of Pennsylvania, in General As¬ sembly met, and it is hereby enacted by the authority of the same, That the Philadelphia and Trenton Railroad Company be and they are hereby authorized and empowered to purchase, acquire, and hold such and so many shares in the .capital stock of any railroad, bridge or canal company or other company, whether the same be incorporated by the laws of the state of Pennsylva¬ nia or any other of the United States, as may be necessary to complete a communication by railroad and steamboat to the city of New York, and the same again to sell and dispose of at their pleasure, and for that purpose to apply and use the corporate funds; or if need be, to borrow money from such person or per¬ sons, and upon such terms as to them may seem expedient; pro¬ vided, that after five years from the date of the passage of this act, the said Company shall not be authorized to purchase any stock as aforesaid; and that nothing herein contained shall bo construed so as to enable the said Company to purchase or hold 77 bank stock, or to have, or in any manner exercise banking privi¬ leges. “ OmcE OF THE Clerk of Senate, ) ' Harrisburg, March 18th, 1835. 3 “ I certify the above to be a copy of an act passed by both branches of the legislature. H. BUEHLER, ClerV’ By virtue of this supplement to their charter, the Philadelphia and Trenton Railroad Company purchased a majority of the stock of the straight turnpike, running between Trenton and New Brunswick, and thus secured the control of that road. They soon commenced active preparations for converting the turnpike into a railroad. They also applied to the legislature of New Jersey, for a recognition of their project, and for aid in carrying it out; and they were heard by counsel in support of the application. The legislature refused to pass the bill they applied for. The records of our Court of Chancery show that the Joint Companies, from apprehension of the prospective opposition, or from some other cause, then applied to the Chancellor for an injunction restraining the Turnpike Company from laying rails up their road. The question was argued before the Court; but before the opinion was given, the difficulties between the rival companies were settled for the time, by the action of some of the most prom¬ inent stockholders of the Joint Companies. By the purchase of a majority of the stock, they secured the control of the operations of the Philadelphia and Trenton Railroad Company, and thus saved the necessity of a decision of the question argued before the Chancellor. For aught that appeared before us in evidence, it seems that this purchase was made by those gentlemen upon their own indi¬ vidual responsibility. We find nothing in the minutes of the pro¬ ceedings of the joint board, or of the executive committee, going to show that the purchase was made with their assent, privity, or recommendation; nor do the minutes show any approbation or recognition of the purchase after it was made. The minutes do show that, for several years afterwards, the board of directors of the Joint Companies refused to have anything to do with this 78 stock, or to take any part of it off tho hands of the original pur¬ chasers. Captain Robert F. Stockton was the principal actor in the purchase of the stock; Messrs. Robert L. and Edwin A. Stevens became associated with him. The project of converting the straight turnpike into a railroad, was no further prosecuted after this purchase of stock. The fair presumption therefore is, that the inducement to make the pur¬ chase was to avert the threatened opposition to the Camden and Amboy Railroad, by means of the turnpike. Had the Philadelphia and Trenton Railroad Company suc¬ ceeded in their eflbrt to convert the turnpike into a railroad, in connection with their road to Philadelphia, it is obvious that a most serious opposition to the Camden and Amboy road would have been the consequence. The proprietors of the new road would not have been liable to any transit duty to the state, except by their own consent; and thus the revenues of the state derived from transit duties, and dividends on her stock in the Joint Companies, might have been seriously affected. Whether or not such an opposition would in reality have arisen, if the stock had not been purchased, we cannot now determine. Speculations upon the subject are of no value. Had a rival road been created in the way proposed, through the central part of the state, we can very w'ell imagine what would have been the effect of it. The danger appeared imminent at the time; and from the evi¬ dence before us, it would seem that to avert or guard against it, was the only inducement the gentlemen above named had to purchase the control of the Philadelphia and Trenton Railroad Company. They held the whole of the stock so purchased until the year 1840. Prior to this purchase of stock, a strong opposition had been going on between the Philadelphia and Trenton Railroad Com¬ pany and the Joint Companies, in the transportation of passen¬ gers between Philadelphia and Trenton, and intermediate points. It would appear that the stockholders of the Joint Companies viewed this actual opposition, in connection with the operations 79 going on upon the straight turnpike, as highly injurious to their ■interests. Upon this subject we find entered in the minutes of the joint board, in the autumn 'of 1835, a communication signed by thirty-one gentlemen, owning a large majority of the stock of the Joint Companies, of which the following is a copy, viz: “ The undersigned stockholders of the Delaware and Raritan Canal and the Camden and Amboy Railroad and Transportation Companies, do hereby request, authorize and direct the directors of the Joint Companies to take such measures as they may deem most expedient to put an end to the opposition which has been going on for so long a time, by the Philadelphia and Trenton Railroad Compaity against the Camden and Amboy Railroad, either by an amalgamation or consolidation of the said stocks,.or any other arrangement which they may consider most advanta¬ geous to the interests of the Joint Companies.” Dated, October 7, 1835. A written agreement between the joint board and the dircclor.s of the Philadelphia and Trenton Railroad, dated iXovcmher 1st, 1835, was laid before us. It is also entered at length in the min¬ utes. The object of the agreement appears to have been to put an end to the rivalry and opposition which had been going on for some time between the parlies. It was thereby agreed that all the passengers by the Philadelphia and Trenton Railroad should be carried in coaches between the Trenton Delaware bridge and the Sand Hills in Burlington county, and thence to and from New York, by the railroad and steamboats of the Joint Companies. The Philadelphia and Trenton Railroad Company were to pay the Joint Companies two dollars for each passenger thus carried. Merchandize to and from Now Y’ork was to be carried by the same route, at eight cents per ton per mile. It was further mutually agreed that the parties would not enter into a ruinous competition in the transportation of passen¬ gers between Trenton and Philadelphia, and the intermediate places, by charging less than a fair compensation, to be fixed in conformity with the charters of the respective companies. On the second day of April, A. D. 1836, a second contract and agreement was made and entered into between the same parties. executed by the presidents of the three companies, with the re¬ spective corporate seals attached. This contract was laid before us, and we also found it entered at large in the minutes. The following extracts from it contain all the material matters which it appears necessary to present in this report: “ Whereas, by a certain writing made, entered into and signed by the stockholders of the Delaware and Raritan Canal and the Camden and Amboy Railroad and Transportation Companies, the directors of the said Companies were requested, authorized and directed to take such measures as they might deem most expedient to put an end to the opposition which had been going on for so long a time by the Philadelphia and Trenton Railroad Com'J)any against the Camden and Amboy Railroad, either by an amalgamation or consolidation of the said stocks, or any other arrangement which they might consider more advantageous to the interests of the Joint Companies aforesaid, as by the said writing, bearing date the seventh day of October, one thousand eight hundred and thirty-five, will appear. “ And whereas, the said directors of the said Companies, in pursuance of the said request, authority and direction, did enter into an agreement with the said Philadelphia and Trenton Rail¬ road Company, which is entered on the minutes of the said joint boards, as will appear by their minutes of the eleventh of No¬ vember, 1835. To the end, therefore, that the object of the said stockholders may be carried into full efiect, and be made per¬ petually binding and obligatory upon the parties respectively: “ Now this indenture, made this twenty-second day of April, in the year of our Lord one thousand eight hundred and thirty-six, between the president and directors of the Delaware and Raritan Canal and the Camden and Amboy Railroad and Transportation Companies, parties of the one part, and the president and direc¬ tors of the Philadelphia and Trenton Railroad Company, party of the other part, witnesseth, that the said parties, for themselves and their successors severally, do hereby covenant and agree, each with the other, and their and each of their successors, that from and after the first day of June next ensuing, during and until the expiration of their said charters respectively, the clear profits arising from the stock of the said Companies shall be divided among all the stockholders of the said several Companies, share and share alike. And further, it is understood and hereby agreed, that the stock of the said Companies respectively, shall be paid up in full, and that the accounts of the said Companies shall be kept separate, and the dividends of the clear profits thereof shall be made and declared separately, in the same manner as if this agree¬ ment had not been made.” This agreement remains in full force at the present time, and the foregoing provisions have been practically carried into eflect. By the act of March 15, 1837, authorizing the construction of the branch road, before cited in this report, it will be recollected that the legislature also authorized the Joint Companies to con¬ struct a spur from some point on the said branch road, in the eity of Trenton, to the Delaware river, at the Trenton Delaware bridge. The manifest object was to form a connection with the Philadelphia and Trenton Railroad. The spur was built. The bridge company permitted rails to be laid upon the track of the bridge, and the connection was thus completed. We refer to this matter simply because it forms an important fact in the history of the union of the Joint Companies with the Philadelphia and Tren¬ ton Railroad Company. Whether the legislature, at that time, considered the probable effect of this connection of the two roads, upon the revenues of the state in dividends and transit duties from the Joint Companies, does not appear. In the minutes of the Joint Board, under date of June 27, 1840, w'e find entered at length, a written communication from Com¬ modore Stockton, in behalf of himself and others associated with him, as owners of a majority of the stock of the Philadelphia and Trenton Railroad, addressed to the directors of the Joint Com¬ panies. In this letter. Commodore Stockton reminds the board of directors of the earnest solicitations made to them by him, both before the Philadelphia and Trenton Railroad was finished as well as afterwards, to obtain the eontrol of the said road, so as to pre¬ vent an opposition which he always thought wmuld be disastrous to the interests of the United Companies. The letter then states that the board, in both instanees, having declined acceding to his request, that he had himself purchased a majority of the stock upon the responsibility of a friend as well as his own, for the pur- pose of guarding against an opposition that he believed would be ruinous to the great stake he held in the Joint Companies as the largest stockholder. He further states that he and the others connected with him, had continued to hold the stock up to that time at a sacrifice which could no longer be endured; that they had contracted a heavy debt by the purchase of the stock, which they were now obliged to discharge, and that they were compelled to part with the stock, which might thereby get into the hands of persons having no interests in common with the Joint Companies. The letter then ofiers the stock to the Joint Companies at what it cost, and urges upon the board the propriety and necessity of •taking it in order to have in their own hands the control of the Philadelphia and Trenton Railroad, and thus prevent a possible opposition which might arise if the stock went into other hands. The board are informed that the stock is first offered to them in consequence of the great interest which the writer and those connected with him, had in the Joint Companies; and that if they decline, it will positively be sold to others, as the present holders had not the means of keeping it. In his communication. Com¬ modore Stockton states that the stock cost one hundred and twenty-six dollars per share, cash; and that the sacrifices they had been compelled to submit to, in order to retain the stock for the security of the Joint Companies, made the cost per share, at that time, equal to one hundred and thirty dollars, cash. He then offers to sell the joint board a majority of the stock at one hun¬ dred and thirty dollars per share, cash, or at one hundred and fifty dollars per share, payable in the sterling bonds of the Joint Com¬ panies, bearing five per cent, per annum interest, at par. He adds that the sterling bonds of the Joint Companies, at five per cent, interest per annum, would probably not bring more than from eighty to eighty-five cents to the dollar. It appeal's by the minutes that the following resolution was adopted by the board, viz: “ Resolved, That a committee be appointed to purchase such a number of shares as will secure a majority of the stock of the Philadelphia and Trenton Railroad Company, on the terms con¬ tained in the proposition made this day by R. F. Stockton and others, and that the sterling bonds of the Companies, bearing an interest of five per cent, per annum, and redeemable in the year 1863, be issued by the Companies in payment thereof.” The above resolution was carried into elTect, and five thousand five hundred shares of the 'capital stock of the Philadelphia and Trenton Railroad Company were purchased from Commodore Stockton and others, and duly transferred at one hundred and fifty dollars per share. The sterling bonds of the Companies were issued in payment, bearing an interest of five per cent, per annum, redeemable in 1863. We did not consider it our duty to go into any evidence further than appears above as to what the stock actually cost Commodore Stockton, and the others concerned with him, inas¬ much as it appears by the minutes of the joint board, as well as by the other facts within our knowledge, that the stock was- originally purchased by them upon their own individual responsi¬ bility alone, without the advice or privity of the board of direct¬ ors, and without any understanding that they would take the stock off their hands. It must be remembered that the Philadelphia and.Trenton Rail¬ road stock, at the time of the said purchase by the Joint Com¬ panies, received the same dividend as the stock of the Joint Companies, under and by virtue of the contract of April 32,1836, to equalize dividends cited above. By a resolution of the executive committee, entered in the minutes, under date of January 11,1842, Edwin A. Stevens, treas¬ urer of the Camden and Amboy Railroad Company, was authorized to receive the dividends due on the stock of the Philadelphia and Trenton Railroad Company belonging to the Joint Companies, viz: five thousand five hundred shares, and that he appropriate the said dividends to the payment of the interest on the loan made for the purchase of the same. These dividends have been regularly received and accounted for by £. A. Stevens, the treasurer of the Railroad Company. And so much of them as was necessary for that purpose, have always been appropriated to the payment of the interest upon the ster¬ ling bonds issued for the payment of the stock. The ten thousand dollars per month paid (as before stated in this report) by the Philadelphia and Trenton Railroad Company 84 to the Joint Companies, for the use of steamboats, cars, &c., is paid, as appears by the testimony of William H. Gatzmer, by order of the executive committee, who act as such in reference to both Companies. James Morrell, the secretary of the Philadelphia and Trenton Railroad Company, testified that their Company had divided eight per cent, per annum, for the last few years. An order is given on the Camden and Amboy Railroad Company, to each of the stockholders of the Philadelphia and Trenton Railroad Company, for the difference in the dividends of the two Companies. This difference has been, for some time past, two per cent, semi-annu¬ ally. The Philadelphia and Trenton Railroad Company have never made any loans, except some small temporary ones, on construc¬ tion account, which were afterwards all paid. Nor do they owe any debts, except some small amounts for cun’ent expenses. They own considerable valuable real estate in the city of Phila¬ delphia and other places, which has been paid for out of their capital. We have thus endeavored to give all the material facts within our knowledge, in addition to those upon the same subject, stated in a preceding part of this report, in reference to the interest of the Joint Companies in, and their connection with, the Philadel¬ phia and Trenton Railroad, In the appendix to this report, will be found a communication from the Joint Companies, marked statement A, in reference to the existing connection between them and the Philadelphia and Trenton Railroad Company, with their reasons for forming such connection. Trenton Delaware Bridge. But little need be said upon the subject above named. At this time the Joint Companies have no direct interest in the Delaware bridge at Trenton, nor connection with it, except that the spur from their branch road at Trenton, runs to the bridge and con¬ nects with the railway track upon it. In 1834 or 1835, the Joint Companies purchased nine hundred 85 shares, being a majority of the stock of this bridge company. This of course gave them tlie control of the bridge. It was done about the same time that the Philadelphia and Trenton Railroad Company bought the straight turnpike, as hereinbefore stated. The disbursement for this stock amounted to forty-five thousand five hundred and thirty-eight dollars and ninety-one cents, as ap¬ pears by the treasurer’s book. The avowed object of the purchase of the bridge shares was to get the control of the bridge, and thus prevent the use of it by the Philadelphia and Trenton Railroad Company in crossing the river and getting into New .Tersey. The Joint Companies held these bridge shares until the com¬ mencement of the year 1849, and received the dividends upon them, which were from time to time declared by the bridge company. We find those dividends regularly ciiarged in the book of the treasurer of the Railroad Company, and accounted for by him. In January, 1849, the Joint Companies sold the whole of these nine hundred shares of bridge stock to the Philadelphia and Tren¬ ton Railroad Companj'. We find in the book of the treasurer of the Railroad Company, under dale of January 31,1849, the charge of forty-five thousand eight hundred and seventy-seven dollars and fifty-six cents, as money received by him from the Philadelphia and Trenton Rail¬ road Company, in payment for this stock. It thus appears by the book of the treasurer, that the Joint Companies received from the Philadelphia and Trenton Railroad Company as much for the stock as it originally cost them, if not more. The excess in the amount of sale over the original cost may possibly be interest which had accrued or balance of dividends due. It does not ap¬ pear, therefore, that the Joint Companies at this time, have any further interest in the bridge than what arises from their being stockholders in the Philadelphia and Trenton Railroad Company. Contracts with the New Jersey Railroad: . The Camden and Amboy and the New Jersey Railroad Com¬ panies are jointly interested in the travel between Philadelphia and New York, by way of the Trenton Delaware bridge, New Brunswick and Newark. Contracts and agreements in writing W'ere at different times entered into by the two companies for the purpose of regulating the business upon this route, and securing to each company its fair share of the emoluments. These contracts have all been sub¬ mitted to usTor examination. There is nothing in the older ones, now superseded, that re¬ quires particular notice. The agreement now in force between the two companies was made and entered into on the 1st of April, 1843, by the Joint Companies and the Philadelphia and Trenton Railroad Company as parties of the first part, and the New Jersey Railroad and Transportation Company of the second part. By the terms of the agreement, it was to continue in force five years from its date, and thereafter unless terminated by three months’ notice, in writing, given by either party. We under¬ stand no such notice has been given. The agreement, therefore, still remains in force, except in some particulars, which have been changed by mutual consent. By the fourth article, four dollars was established as the fare for first class through passengers, and three dollars for second class; of which the New Jersey Railroad was to receive one-fourth, and the other Companies three-fourths. This article has lately been modified by mutual consent, so as to conform to the present re¬ duced rate of fare, which is three dollars for first class, and two dollars and fifty cents for second class passengers. The money is still divided in the above proportion. A few changes also respecting way fares and other matters of minor importance, have been made in the contract by the like mutual consent. * By the sixteenth article of the agreement, the parties of the first part guarantee that not less than two-thirds of the whole aggregate number of through passengers, by both routes, that is, by way of Amboy and by way of New Brunswick, shall be car¬ ried by the lines by this agreement established by way of New Brunswick; and that in case the number of passengers actually carried by said lines shall be less than said two-thirds annually. 87 then to pay, or cause to be paid (to the party of the second part) for such deficiency at the rate of one dollar for each first class passenger. And that on both routes four second class passen¬ gers shall be estimated as three first class passengers. In consequence of the above guarantee, the Joint Companies, as appears by their books, have paid to the New Jersey Railroad Company, during the past year, the sum of twenty-four thousand dollars, due them under the agreement, for the excess of passen¬ gers passing on the Amboy route. We have presented the above facts in connection with the con¬ tract in question, to the notice of the legislature, simply because the revenues of the state may be considered as aflected by them; and the more especially so since the act of the legislature, approved April 18, 184G, accepting from the New Jersey Rail¬ road Company eight cents for every dollar received from dutiable passengers, instead of eight cents for each and every passenger carried over their road. Unilcd Stales Mail. The present contract for carrying the United States Mail, commenced January 1, 1848, and was made in the name of the Philadelphia and Trenton Railroad Company; by the terms of which they agree to carry the mails between New Brunswick and Philadelphia, four times per day, for the sum of four thou¬ sand three hundred dollars per quarter, or seventeen thousand two hundred dollars per year. One of the mails is carried over the Camden and Amboy road, by way of Camden, Bordentown and the branch road ; the other three mails are carried over the Philadelphia and Trenton and the branch road. The mail money is received by the Philadelphia and Trenton Railroad Company, out of which the Camden and Amboy Rail¬ road Company first receive one-fourth of the whole amount; the remaining three-fourths is then divided between the two compa¬ nies, according to the distance the mail is carried by each. The government has the privilege of sending a mail agent with the mail bags, who has a car or apartment appropriated to him¬ self. No transit duty is paid for this branch of transportation. Camden Ferry Company. The Camden and Amboy Railroad Company, for the purpose of carrying out the object of their charter, were required by the seventh section thereof, to provide suitable steam or other vessels, at either extremity of the road, for the transportation of passen¬ gers and produce from city to city; so that no delay should occur for want thereof. In conformity with this requisition, they built two steamboats, called the State Rights and John Fitch, for the purpose of plying between Camden and Philadelphia. They also built suitable slips, docks and wharves for the accommodation of a ferry at Camden, and a tavern house adjoining said ferry. Shortly thereafter, a charter was obtained from New Jersey and Pennsylvania for the incorporation of a ferry company, called the “ Philadelphia and Camden Steamboat Perry Company.” The Joint Companies, as appears by a statement furnished to us by them, which is annexed to this report marked B, deemed it most to their interest, in consequence of the limitation in the prices to be charged for crossing by this company, and to re¬ lieve themselves from the necessity of keeping up a ferry on their own account, to employ this new company in transacting this part of their business. They therefore sold to the ferry com¬ pany the two steamboats, slips, docks, wharves, tavern house, lot, stables, &c., at Camden, and the fixtures of the ferry at a valuation, and took the amount of the sale in the stock of the ferry company, at the par value thereof, amounting to one thou¬ sand two hundred and seventy-one shares at fifty dollars per share, or sixty-three thousand five hundred and fifty dollars. This sale was made in the year 1837 or ’38. The ferry com¬ pany has since that time carried the passengers, and sometimes the merchandize of the Joint Companies, between Camden and Philadelphia at specified rates, viz: The Joint Companies have paid, from 1838 to the winter of 1848 and 1849, for passengers by the lines, in spring, summer 89 and fall, five cents for each, and in the winter ten cents. In the winter of 1848-49 this was reduced to live cents. The Phila¬ delphia and Trenton Railroad lines, when run by way of Camden, paid for the morning line five cents, and for the night line ten cents. The above embraces passengers and baggage. The market line and way passenger lines, via Camden, paid the ferry company one-fourth of the amount received for mar¬ keting and freight, as returned by the conductor in the way bills. The transportation, when run by way of Camden, paid the ferry company : For through freight six cents per one hundred pounds. “ Way “ three “ “ “ “ “ Cheap “ one “ “ “ “ Since the first of January, 1847 : For through freight four cents per one hundred pounds. “ Way “ two “ “ “ “ “ Cheap “ one “ “ “ “ The evidence is that the ferry company has been settled with from time to time at those rates; and that the rates for passen¬ gers have been the same as those charged by the other ferries. The rates of freight have varied from time to time, but have generally been from one to six cents per hundred pounds. The ferry company made a dividend in February, 1849, of five dollars a share, which is the only dividend declared by them up to that time. This dividend has been rcceired by the Camden and Amboy Company on their stock, and properly accounted for. The evidence is also, that the ferry company has been paying out of their earnings for property which they have purchased and still hold, and thai they remain indebted for a part of it. The ferry company, for the purpose of making certain im¬ provements, whereby the transportation of passengers and mer¬ chandize would bo greatly facilitated between Camden and Philadelphia, and for the purpose of purchasing certain property, borrowed from the Joint Companies, August 22d, 1840, the sum of thirty-seven thousand five hundred dollars of the bonds of the three hundred and sixty-seven thousand dollar loan, authorized by the stockholders in January, 1840, and in cash six thousand seven hundred and forty-three dollars and thirty cents; alto- 90 gether amounting to the sum of forty-four thousand two hundred and forty-three dollars and thirty cents. The bonds were sold by the ferry company and, together with the cash, realized forty- one thousand five hundred and fifty-five dollars and eighty-two cents. The ferry company have repaid the whole amount of principal and interest in full of this loan, at the par value of the bonds, as appears by the book of the treasurer of the Joint Com¬ panies. Mr. Gaizmer in his testimony says, that this loan was made to enable the ferry company to purchase Jacob Ridgway’s ferry property, at the foot of Market street and Arch street, in Philadelphia, and the tavern houses thereto annexed, and the ferry and ferry house at Camden, now called Cake’s ferry, be¬ sides some stables arid dwelling houses in Camden; being all the property of Jacob Ridgway, in Camden, denominated ferry pro¬ perty. There was also included in the purchase other property, situate at Bloomsbury, together with the steamboat Hornet, and a stipu¬ lation to purchase of Reeves and Knisell, tenants of Jacob Ridg¬ way, the steamboats William Wray and Philadelphia, which were used on said ferries, and which were accordingly pur¬ chased ; some other property was also included in the purchase. The ferry company has since that time run two. ferries between Philadelphia and Camden. It will also appear from the same testimony, that the Camden and Amboy Railroad Company, and the Camden ferry compa¬ ny kept their accounts entirely distinct; and that if one company uses the wood or coal of the other, or anything else, an account of it is kept, and settlements thereof are from time to time made. And also, that if the cars or any part of the machinery of the Joint Companies are used for the private benefit of any of the di¬ rectors or other individuals, such persons are regularly charged for the work done or the service rendered, and the amount col¬ lected. William H. Gatzmer is the agent of the Joint Companies with regard to their interest in the ferry company. 91 New Brunswick Steaniboat and Canal Transportaiion Company. The contracts made by the Joint Companies at different times with the New Brunswick Steamboat and Canal Transportation Company, commonly called the Napoleon Company, have been of great importance. The nature and conditions of most of them have been stated in the details of our investigation of the affairs of the Canal and Railroad; but inasmuch as that company has been intimately connected with the Joint Companies for a long time, we deem it advisable to give a condensed statement of the history of that company, and of the nature and extent of its con¬ nection with the Joint Companies. That company was chartered by the legislature of New Jersey January 18, 1831, with a capital of one hundred thousand dol¬ lars, divided into two hundred shares of five hundred dollars each, for the establishment of a steamboat or boats, and a canal boat or boats to ply on the Raritan and Delaware rivers, and on any canal that might be thereafter completed between the cities of New York and Philadelphia; and for the establishment of a steam¬ boat ferry between New Brunswick and New York. The whole capital stock was subscribed, the company duly organized under the charter, and one hundred and twenty-five dollars paid in on each share in February, 1831; and a steamboat ferry was es¬ tablished between New Brunswick and New York. Edwin A. Stevens, James Neilson, and others interested in the Joint Com¬ panies had, for some time previous to the date of the charter of the company, been interested in a line of steamboats running under the name of the Union Line, between New Brunswick and New York. In May, 1831, an agreement was made between Mr. Stevens and his associates, and the original stockholders of the New Brunswick company ; in pursuance of which a majority of the capital stock was afterwards transferred to Mr. Stevens and his associates, and on the IGth of May, 1831, Edwin A. Ste¬ vens, James Neilson, George Able, Miles C. Smith and Isaac Fisher were elected directors. The company continued their ferry between New Brunswick and New York, but did not embark in any other business of much importance until 1835; 92 previous to which time they had divided eighty dollars per share profits, while the capital was only twenty-five thousand dollars paid in. In May, 1834, twenty-five thousand dollars additional capital was paid in, making fifty thousand dollars in all, which was the whole capital ever paid in. Other persons interested in the Joint Companies became, after¬ wards, the owners of part of said majority of stock in the New Brunswick company; and it appears to have been under the con¬ trol of persons who were directors of those companies from 1835 to the present time. On the 1st of January, 1835, the New Brunswick company en¬ gaged in the transportation of merchandize on the Camden and Amboy Railroad, under an agreement, the terms of which have already been fully detailed in our description of the manner of conducting the railroad transportation, which they continued to do until April 1,1846. In the latter part of the year 1840, they commenced that kind of transportation over the railroad which has been fully de¬ scribed under the head of Winter Transportation, and continued it until the present winter. In 1835 the company established a line of coal barges, which they continued to employ in carrying coal through the Canal until the close of 1846, excepting for a short period, during which the barges were owned by an individual. The company paid the regular rates of toll for the coal carried in those barges. In 1835 the company also run a few barges through the Canal which carried merchandize, and paid the regular tolls. In 1836 they formed a connection with C. «& F. King & Co., of Philadelphia, who owned a transportation line running through the Canal, called the Merchants’ Line; the company becoming, in the first instance, the owners of one half of the line; and after several changes and'variations in the ownership of the remaining half, the company, in 1841, became the owners of the whole line. They were also interested in the Swiftsure Line in the same pro¬ portions and with the same partners, from its establishment in 1838 to 1st November, 1841, when they became sole owners of both lines, and continued to own them up to the close of the past season, (1849.) 93 It appears by the statement marked D, annexed to the report, that both lines have now been sold out to other parties. They also, occasionally run a few vessels through the Canal to Al¬ bany, and to Hudson and Bridgeport, as stated in our description of Canal transportation. The contract for the payment of tolls on merchandize carried through the Canal by the Merchants’ and Swiftsure Lines, has already been fully described and discussed, in connection with the whole subject of special contracts, for the payment of tolls, and hardly need be adverted to in this connection. It is of the same general nature as the contracts made with other persons for the same purpose; and the tolls on merchandize per ton paid under it, are believed to have been equal to, if not greater than those paid under any other contract; and the terms were quite as favorable, to the Joint Companies while C. & F. King & Co., and others, were interested in the lines as they were after the New Bruns¬ wick company became sole owners. From all the information we have been able to collect, the em¬ ployment of the coal barges belonging to this company on the Canal, was unprofitable to their owners, and very beneficial to the Joint Companies. They were established almost at the com¬ mencement of the navigation, when the coal trade was very small; and by proving that the route through the Canal could compete with that by sea, induced others to convey coal to market by the former route. The New Brunswick company also acted as agents of the Joint Companies, for the management of the steam tow-boats; but it does not appear from the testimony, that they had any beneficial interest in that branch of business, excepting a compen¬ sation for the services rendered by their officers and agents, and for their property used by the Joint Companies. Although we have already, under the head of Railroad trans¬ portation, stated the conditions of the contract between the Joint Companies and the New Brunswick company, relating to that branch, a repetition of the principal conditions appears to be required here, in order to exhibit fully the nature of the connec¬ tion between the companies. The general features of this contract were that the Joint Com- 94 panics furnished sleamboats, locomotives and cars, and paid every expense .connected with.them, and transported for the New Brunswick company all goods delivered on board of their steam¬ boats or on their cars by the latter, the whole distance between Philadelphia- and New York, for seven dollars and sixty-four cents per ton, being at the rate of eight cents per ton per mile for the estimated distance. For merchandize transported only a part of the distance, three dollars and eighty-two cents per ton was paid, without respect to the distance it was actually carried. There were modifications of these terms with regard to winter freight and coarse freight, the effect of which will be noticed. The New Brunswick company were not required to embark any capital or to employ any agents in the business, excepting such as might be required for receiving and delivering of mer¬ chandize, changing it from one mode of conveyance to another, . taking charge of it on its passage, and for collecting the freights and keeping the accounts. ■ The basis of this arrangement evidently was the highest rate allowed by the charter to be charged for tolls and transportation. By this contract the Joint Companies received the full amount named in the charter, without deductions for the expenses of the receipt or delivery of goods, or for the losses and damage incident to the business; and they also appear to have considered that they were relieved from the legal obligations which would have attached to them as common carriers, if they had received, trans¬ ported and delivered the goods themselves. Under this contract, W’ith the modifications respecting coarse freight and winter freight, the New Brunswick company forwarded all the merchandize carried over the Railroad from January 1, 1835, to April 1, 1846, and charged shippers various prices, gen¬ erally exceeding seven dollars and sixty-four cents per ton for through freight. The rates charged towards the latter part of the period being much lower than those charged in. the former part. It is, therefore, obvious that the New Brunswick company must have received much more for the transportation of merchandize than eight cents per ton per mile. What the whole amount of that excess has been, or what disposition has been made of it, we have not inquired, neither have we deemed it our duty to inquire. 95 If the Joint Companies had the right and power to make a contract with the New Brunswick company, by which the latter could lawfully receive more for transportation than they were authorized to receive themselves, then such excess belongs properly to the latter company, and it is the province of the stockholders of that company, and not of those of the Joint Companies or of the state, to enquire what disposition has been made of it. If, on the other hand, the Joint Companies had no right to receive or to authorize any other person to receive for transportation, more than the sum named in the charter, questions relating to any excess that had been received would concern the payer and the receiver alone. In such case the slate, as a stockholder, would not exact or require an account of money to which she was not entitled. If it were admitted that the Joint Companies had themselves the right to receive more for the transportation of merchandize over their road than the sum specified in their charter, and that their directors, with such right, had made a contract admitting the New Brunswick company, in which some of them had a large pecuniary interest, to a participation in the profits of the business, then it might be within the sphere of our duties to inquire what amount had been received by the latter company, that it might appear whether or not this amount was proportionate to the ser¬ vices performed and the risk incurred; and whether good faith had been observed in making the contract. But inasmuch as the profits received by the New Brunswick company from railroad transportation, arose almost entirely from the excess received by them above eight cents per ton per mile, and as the question, in all its aspects, has been brought before the judicial tribunals of the state, it is not, as we believe, one of the matters we are required to investigate. We have, therefore, confined our examination of this matter to the inquiries whether all the money due from the New Brunswick company to the Joint Companies, according to the agreement be¬ tween them, had been duly paid; and whether the state had re¬ ceived a correct account of the quantity of merchandize on which she was entitled to receive transit duties, and the result of those inquiries has been already stated. 96 The establishment of the winter line appears to have been a ju¬ dicious arrangement; carrying certain heavy and cheap articles over the Railroad during the winter, at low prices. Although the profit has been small, it has tended to prevent the establishment of sea lines, which might afiect the business of the Canal materially during the season of navigation ; and the same remark is applica¬ ble to the carrying of certain heavy articles at low prices over the Railroad in the summer season. The amount of profit re¬ ceived by the New Brunswick company from these sources was very small. The New Brunswick company has chartered passenger steam¬ boats belonging to the Joint Companies at different times, and em¬ ployed them on their ferry between New Brunswick and New York; and, as far as we can discover, always paid the former companies a fair compensation for their use, with the exception of an account for the charter of a boat which terminated during the last year; which account is still unsettled, there being mutual un¬ settled accounts between the two companies. The Joint Companies loaned to the New Brunswick company in 1849, fourteen thousand dollars of their bonds issued in 1840. This loan is still unpaid, as already noticed under the head of loans. We have now detailed all the facts within our knowledge, re¬ lating to the connection between these companies, that appear important. The books of the New Brunswick company have been submit¬ ted to us, and have been fully examined, as far as they related to the accounts of the steam tow-boats, and also, as far as we be¬ lieved the rights or interest of the state or the stockholders of the Joint Companies were involved in the transportation on the Rail¬ road and through the Canal. In the appendix to our report will be found communications from the Joint Companies, marked C and D, in relation to the con¬ nection formerly existing between them and the New Brunswick . company. Coal Lands, and Loan of one hundred and seveiUeen thousand dollars for building Boats and mining Coal. In the year 1834, a former officer of the Joint Companies (since deceased) was found to be indebted to them about sixty-three thousand four hundred and twenty-five dollars and thirty-three cents; his indebtedness having arisen from an improper issue of certificates of the stock of the Companies, and from a balance of their funds in his hands. In liquidation of this indebtedness, the said officer conveyed to certain trustees, selected by the board of directors, a number of tracts of land in New Jersey, most of which were subject to prior incumbrances of large amount; and also a quantity of coal lands in the slate of Pennsylvania, partially in- cumbered by mortgage, and to a part of which claims of title ad¬ verse to that made to the trustees, were interposed by other in¬ dividuals. In 1835, the original trustees, under the direction of the joint board of directors, conveyed the trust property to Abra¬ ham Brown, Esquire, who was appointed trustee in their stead. The conditions of the trust were, that the trustee should receive the income of the property until sold, sell the same, and apply the proceeds, first, to the discharge of the incumbrances; second, to the payment of the amount due to the Joint Companies, and the e.xpenses of the trust; and then pay the residue to the person who conveyed them to the trustees. Mr. Brown, the trustee last appointed, took possession of the lands, leased and finally sold most of the property in New Jer¬ sey, and from time to time paid the proceeds to the treasurer of the Railroad Company as he received them. In 1837, the trustee, in the execution of the trust, contracted to sell a portion of the coal lands to John C. Offerman, of Schuylkill county, Pennsylvania, and anojher portion to other individuals; but all the individuals who agreed to purchase, ultimately failed to complete their pur¬ chases. The trustee then sold the whole of the lands, at two dif¬ ferent times, at public auction, to divest them from the trust, and they were purchased for the Joint Companies by an agent ap¬ pointed by them. Mr. Offerman, while his contract for the pur- chase of part of the land was pending, liad improved the same by building, and had mined and carried away from the premises a large quantity of coal. These matters were afterwards all settled . by arbitration between him and the Joint Companies. In 1838, the Joint Companies determined to embark in mining coal and transporting it to market, from the tract to which they first acquired a title divested from the trust; and for that purpose selected an agent to superintend the business at the mines, and contracted with two individuals to transport the coal to market; and for the purpose of enabling the agents employed to build boats and raise coal, advanced to them one hundred and seven¬ teen thousand dollars of the money received by the Companies from loans. The money advanced was used in building a num¬ ber of boats, and in mining and carrying a large quantity of coal, to market. The business was continued for several years, when the accounts of the agents were closed, and the moneys in their hands paid over to the treasurer of the Railroad Company. The business does not appear to have been in itself profitable to the Joint Companies; it was the means, however, of making the coal lands available, and of introducing the transportation of coal from the Schuylkill, through the Canal, and this appears to have been the object and design of the appropriation of the money. The transaction appears to have been undertaken and carried on in good faith; and there docs not appear to have been any misapplication of the funds advanced. Mr. Brown continued to act as trustee of the coal lands and other property conveyed therewith, until his death, in 1848, and his accounts have not been finally settled. On the 30th of May, 184G, the Joint Companies entered into an agreement with Robert W. Packer, of Reading, Pennsylvania, by which they agreed to sell all the coal lands to him for eighty-one thousand and three hundred dollars, payable in certain stipulated payments, with interest from the date of the agreement. If Mr. Packer should be dispossessed of any of the lands by a superior title, a reduction of the amount of purchase money was to be made at a fixed rale per acre,and thetitle was to be given when the purchase money should be all paid. Mr. Pack¬ er has since died; it is understood that his representatives intend 99 to pay llie balance of tlie piircliase money, and receive the title. A part of the purchase money and interest has been paid, and about sixty-six thousand dollars still remain unpaid. The amount of the original investments of the Joint Compa¬ nies in the lands conveyed to the trustee, as before stated, and in mining and carrying coal to market, is as follows:— Original indebtedness, for which the trust was created, $63,425.33 Money advanced for carrying on coal business, 117,000.00 Money advanced to pay a mortgage on trust pro¬ perty, July, 1833, 2,000.00 The total amount of net receipts from the proceeds of the trust property and the coal business, as far as the accounts have been settled, is §112,559.00 The amount still due on the contract for the sale of the coal lands, without any calculation of interest, is 66,000.00 §178,559,00 Besides the above stated receipts, there are three thousand three hundred and eighty-seven dollars and twenty-seven cents in the hands of the coal agent; but it is understood that there are out¬ standing accounts still unpaid, which will nearly balance that, amount. The balance of the account of Mr. Brown, as trustee, cannot now be ascertained. His accounts for services rendered are only memorandums of the services performed, without any specific amount of money being charged. This trust property involved the Companies in expensive liti¬ gation, which is not yet closed. From the unsettled condition of some of the accounts, it is impossible to ascertain with accuracy the amount of money that will be ultimately realized from the original trust and investment. Statement E, in the appendix, laid before us by the Companies, gives a detailed account of the whole transaction. Conclmion. We have at length reached the conclusion of this long re¬ port, to the relief of the legislature as vrell as of ourselves. Before closing it, however, we beg leave to add, that in pre¬ paring it, our leading object was to present the facts truly, with¬ out color or disguise, rather than to draw conclusions from them. The former was the especial design of the investigation, as we supposed: the latter is the province of the authority to which we must respond. At the same time, we have endeavored to state the facts in reference to the specific charges with so much clearness and precision, that conflicting inferences cannot well be drawn from them. We feel justified in giving the assurance' that the matters stated in the report as facts within our know¬ ledge, or as derived from our inspection of the hooks of the Com¬ panies, may be confidently relied upon as true. In our opinion, the testimony of the highly respectable and intelligent witnesses examined by us, is entitled to the same degree of credence. We are sensible that the report has been extended to a length apparently unreasonable. This is not the result of choice on our part We might have spared ourselves much labor, by sim¬ ply reporting conclusions and results instead of facts: such a course, however, would not have been satisfactory, as we be¬ lieved, nor did it comport with our ideas of duty. More or less repetition will certainly be found in the preceding pages. We could not entirely avoid this. We might, perhaps, to some extent have corrected the report in this as well as in some other particulars, and thereby curtailed it, had not our time been limited. The propriety, if not the necessity, of presenting our report to the legislature at the earliest possible day during the present ses¬ sion, has prevented that deliberate and careful revision which we should otherwise have given it; thereby relieving it, no doubt, of many redundancies and, possibly, improving the phraseology. Complaint may be made that some matters of interest are not noticed at all in the report. If so, our excuse must be that had we enlarged the field of investigation, it would not have been 101 possible to report during the present session of tlie legislature. On the other hand, it may be objected by some that we have spent more time and examined more subjects than was either expected or necessary. Be that as it may, however, we remark that, with reference to all matters outside of the specific charges, we exercised our discretion and judgment in such way as would, we believed, most effectually carry out what we supposed were the intentions of the legislature. Several matters of minor im¬ portance will be found in the testimony of the witnesses, which are not noticed in the report. To instance one, the free ticket system upon the Railroad, is minutely detailed in the testimony of Mr. Gatzmer. We submit the results of our protracted labors to the calm and intelligent consideration of the legislature, with the hope that the consequences of the investigation may be such as to merit the sanction and support of every good citizen in the state. It has already been stated that the board of directors, in com¬ pliance with our request, furnished us, from time to time, with several communications in writing in reference to some of their contracts and arrangements with other companies and indivi¬ duals. All the original written contracts were laid before us; every thing material in relation to them, we believe, has been noticed in the previous pages of this report. Some of the communications above referred to, we have con¬ cluded to annex to our report, by way of appendix. Statement marked A, thus appended, has relation to the Philadelphia and Trenton Railroad; statement B, to the Camden Ferry Com¬ pany; statement C,'to the transportation business over the Rail¬ road by the New Brunswick Steamboat and Canal Transporta¬ tion Company; statement D, to the Merchants’ and Swiftsure Transportation Lines, through the Canal; statement E, to coal lands and the expenditure of money in the effort to introduce the coal trade through the Canal. Several other documents and statements prepared by some of the officers of the Companies, and verified by oath, are also herewith presented to the legisla¬ ture, together with the testimony of all the witnesses examined by us One is a statement prepared by Gen. William Cook, the en- 102 gineer of the Railroad, respecting expenditures upon the road, showing its present condition, and the real estate owned by the Company along the line of the Road. Another, is a statement prepared by Robert S. Van Rensalaer, engineer of the running de¬ partment of the Railroad, giving an account of the locomotives, cars, &c., owned by the Company. A third one was prepared by Ashbel Welsh, the engineer of the Canal Company, respecting the Canal, similar in character to that of Gen. Cook respecting the Railroad. We respectfully refer the legislature to these various docu¬ ments and the testimony of the witnesses, for more particular information on many points, than is contained in the report. We embrace this opportunity of returning our thanks to the joint board of directors, for the use of their room at Borden- town, which was given up to us exclusively; and also, for the uniform attention and courtesy extended to us by them and other pfficers of the Joint Companies, during the investigation. It is proper to add that one of the directors of the joint board informed us, while preparing our report, that they were willing and ready at any moment, to pay over to the State Treasurer the amount of transit duties which we might find due from them to the. state, for omissions in the return of dutiable passengers and merchandize. At our suggestion it was thought advisable to leave it until after the report was made. All of which is respectfully submitted. AARON ROBERTSON. JAMES S. HULME. A. WURTS. Mesl: Ciu’s M. Habkee, Secreianj. Dated, Boedentown, February 7th, 1850. APPENDIX. STATEMENT A. PHILADELPHIA AND TRENTON RAILROAD COMPANY. The connection between the joint companies and the Philadel¬ phia and Trenton Railroad Company, is a very intimate one; forming, as the road of this company does, a most important link in the chain of railroad communication between Now York and Phila¬ delphia, on the old established route of travel between these cities, via Trenton and New Brunswick. This company was incorporated by the state of Pennsylvania, in the year 1832, with a capital of 81,000,000; and the managers immediately conceived the idea of elongating their road, through the state of New Jersey, from Trenton to New Brunswick. For this purpose, they applied to the legislature of Netv Jersey for authority to continue their road across the state to New Bruns¬ wick. This application was refused, on the gi'ound that the legis¬ lature could give no such authority without a violation of the privileges granted to the joint companies. Determined to force their way across the state without permission of the legislature of New Jersey, they procured from the state of Pennsylvania tlie following supplement to their charter: “Supplement to an act entitled, an act authorizing the governor to incorporate the Philadelphia and Trenton Railroad Company. Sec. 1. Be it enacted by the Senate and House of Rejtresenta- tives of the Commonwealth of Pennsylvania, in General Assembly met, and it is hereby enacted by the authority of the same, That the Philadelphia and Trenton Railroad Company be, and they are hereby authorized and empowered to purchase, acquire, and hold such and so many shares in the capital stock of any railroad, bridge, or canal company, or other company, whether the same be incor¬ porated by the laws of the state of Pennsylvania or any other of the United States, as may be necessary to complete a communica¬ tion by railroad and steamboat to the city of New York; and the same again to sell and dispose of at their pleasure, and for that pur¬ pose to apply and use the corporate funds, or, if need be, to bor¬ row money from such person or persons, and upon such terms, as to them may seem expedient; •provided, that after five years from the date of the passage of this act, the said company shall not be authorized to purchase any stock as aforesaid; and that nothing herein contained shall be construed so as to enable the said com¬ pany to purchase or hold bank stock, or to have, or in any manner exercise banking privileges. Office of Clerk of Senate, 1 Harrisburgh, March 18, 1835, j I certify the above to be a copy of an act passed by both branches the legislature. H. Buehler, ClerJi. In virtue of this act, the company purchased the straight turn¬ pike road, between Trenton and New Brunswick, for the purpose of laying rails thereon, to connect with the road in Pennsylvania, and thus compete with the Camden and Amboy Kailroad Compa¬ ny, to the manifest injury of the state, as well as the joint compa¬ nies, and actually commenced the laying of rails thereon. The project created great excitement throughout the state of New Jersey, and many persons supposed that the united compa¬ nies, or those connected with them, were engaged in the enterprize, for the purpose of cheating the state out of the transit duties. But no such connection existed. On the contrary, the joint companies, by their agents, succeeded in securing a majority of the stock of the Trenton Delaware Bridge Company, with the view of prevent¬ ing, as far as possible, the carrying out of the intended project. Subsequently, in the autumn of 1835, individuals largely interested in the joint companies, with a view to put an end to these projects {which had already involved the adoption of heavy and angry liti- iration, as well as much legislative embarrassment,) proposed to the board of directors of the joint companies, that they should pur¬ chase the control of the Philadelphia and Trenton Railroad; but this the board peremptorily refused to do. 5 Shortly afterwards, in October, 1S35, the stockholders of the joint companies, having called upon the directors “to make an arrange¬ ment to put an end to the opposition which had been going on for so long a time by the Philadelphia and Trenton Railroad Company, against the Camden and Amboy Railroad,” the joint board, in pur¬ suance of this requisition, and for the purpose of removing, as far as possible, every inducement for converting this road, with its at¬ tendant privileges, into an engine of opposition to the Camden and Amboy road, made the arrangements with that company which are embodied in the agreements of November 11, 1835, and April 1, 1836, heretofore submitted to the commissioners; by which it was, amongst other things, provided that the dividends on the stock of the two companies should be equalized. It has always been the unimpaired conviction of the directors and stockholders of the joint companies that this arrangement wa_s one of most signal advantage to these companies, and that the state was no less benefited by it than the companies themselves. This, it is thought, must be obvious to the commissioners and to all oth¬ ers who have given their attention to all the circumstances of the The inquiry has been made by the commissioners, whether the individuals who purchased the stock of the Philadelphia and Tren¬ ton Railroad Company, as before mentioned, did so under any as¬ surance from the joint companies that such stock would be taken off of their hands, or that the arrangements before mentioned should be made. The answer is, that no arrangement or understanding of any sort or kind was had with the joint companies on the subject. The only motive which actuated the persons referred to in making the pur¬ chase, was to protect and secure the large interest which they held in the joint companies, and to obviate the embarrassments which the rivalry and opposition of the Philadelphia and Trenton Rail¬ road Company threatened to impose upon the joint companies and Prom ignorance, however, of the motives which led to the con¬ nection thus formed, and from a lingering jealousy entertained by tlie legislature and the people of New Jersey against the supposed scheme of the Philadelphia and Trenton Railroad Company to erect an independent line of railroad communication across the state, by means of their interest in the straight turnpike, whereby the state might forfeit its stock in the joint companies, a jealousy which 6 gained strength from the commencement of a railway track from the Trenton bridge to the canal, at the city of Trenton, the legis¬ lature of the state, in March, 1837, appointed a committee to make certain inquiries relative to this subject. In their communication to the joint board, the committee say, “that being informed that said road has been thus far constructed by your companies, they submit to you a copy of the resolution, together with the following ques¬ tions, wishing your answers thereto in writing, with as little delay as possible.” Amongst these questions will be found the following, the answers made thereto on behalf of the joint companies being annexed: “1st. By whom is this railroad, viz., the one from the Delaware bridge, near Trenton, to the line of the Delaware and Raritan canal, constructed, or being constructed I Their answer to the first question is: That portion of the railroad lying on the Delaware bridge com¬ pany’s property has been constructed by the Philadelphia and Trenton Railroad Company, and the other portion of said railroad has been constructed, and is being constructed, by the Delaware and Raritan Canal, and Camden and Amboy Railroad and Trans¬ portation Companies. 17th question. May not this railroad, or a part of it, by uniting with others, or by uniting with such bridge as may unite it with others than the Camden and Amboy and New Jersey railroads, be used in competition with the Camden and Amboy railroad; and may not the completion of it bring about a forfeiture of the shares of stock belonging to the state, in case the companies shall so deter¬ mine, by the provisions of section 6, of an act entitled, “An act relative to the Camden and Amboy Railroad and Transportation Company," passed 4th February, 1831] Their answer to the 17th question is: That it will not. 21st question. Do you, in the construction of this road, form a connection with the Philadelphia and Trenton railroad by passing over the Delaware bridge near Trenton, and, if so, by what au¬ thority do you consider yourselves authorized to do so] Their answer to the 21st question is: The road does not cross or go on the Delaware bridge, but, as before stated, the bridge company have allowed rails to be laid on their bridge and adjacent property; which rails the united compa¬ nies have allowed to be connected with this road for the accommo- (lation of tlie citizens of Trenton, and because the pecuniary inter¬ ests of the state will be increased thereby. During the same session, the legislature passed an act authorizing the joint companies to make the railroad between Bordentown, Trenton, and New Brunswick, to connect with the Philadelphia and Trenton railroad at the Trenton bridge, stipulating for the same tran¬ sit duties thereon as were reserved on the original road, and also stipulating that the interest of the state in the stock of the joint com¬ panies should not be affected. This act was passed, subject to accept¬ ance by the joint companies, and was shortly after formally accepted by them. But their principal security against further opposition from the Philadelphia and Trenton Railroad Company rested on the fact, that the stock of the latter company was controlled by those who were largely interested with themselves. Should any adverse cir¬ cumstances occur, to throw this stock into the hands of those who might refuse to carry into effect, with good faith, the arrangement which had been made, all the original difficulties and embarrass¬ ments would be renewed. To provide against the dangers to be apprehended from this source, some of the principal stockholders of the joint companies, at an early day, suggested the plan of the joint companies purchasing the Philadelphia, and Trenton railroad stock. But this being opposed by the board of directors, who were satisfied that the interest of the holders of this stock in the joint companies, would impel them to retain it, and that the interest of the joint companies would be thereby as fully secured as if they owned the stock themselves, the matter was dropped. But the severe pressure of the times, in the year 1840, made it difficult, if not impossible, for the holders of this stock to retain any longer the control of it; and it was thereupon offered by them to the joint coibpanies, at a price amounting to what it had cost, with an intimation that, unless it should be purchased by the joint companies, the holders would be obliged to sell out to other per- Had the stock fallen into adverse hands, the attempt to convert the straight turnpike road into a railroad would probably have been revived, and the warfare of opposition (so much deprecated.by the stockholders in their communication of October, 1835;) would have been renewed: the interests of the joint companies and of the state would have suffered severely in such a contingency. Such an oppo- •sition would have entirely frustrated the just expectations of the stockliolders of the joint companies, as well as one principal con¬ sideration on which they had proceeded to invest such large sums; which was, that they should be secure in the enjoyment of the route they were to occupy. Without tlie prospect of a protection of this hind—a protection accordant, indeed, with the express legislative policy of the state— capitalists, to whom they had recourse at home and abroad, could never have been induced to enlist in aid of the great enterprize to be accomplished. Without such protection, the value of the inter¬ ests which the state deemed it important to foster, and the value of the returns which she expected to realize therefrom, would have been destroyed. These considerations weighed strongly upon the directors of the joint companies, and induced them (notwithstanding their former refusal to buy this stock) to accept the offer made to them by the owners of it, and they became its purchasers,—issuing the bonds of the companies in payment thereof, as will be seen by the minutes of the board. In.a financial view, this purchase has been advantageous to the state and to the companies; for the dividends accruing on this stock have exceeded the amount of interest paid on the bonds issued for its purchase, and it has entirely protected them from the disastrous effects of an opposition, by which the state and the other stockhold¬ ers would have been greatly injured. The avoidance of opposition, highly desirable as this was, is not the only consideration which recommended the purchase of the Trenton railroad stock. Experience had shown, that at certain seasons of the year the Delaware river at Camden would be often obstructed, and some¬ times rendered impassable by the ice. This road, therefore, furnished a means (and the only one) by which, at all seasons and under almost every conceivable circum¬ stance, the intercourse between the great cities would not be inter¬ rupted. With two routes, one by the way of Amboy and Camden, and the other by the way of New Brunswick and Trenton, an acci¬ dent occurring to a portion of the road, or the burning of a bridge, (as has happened on other roads) would cause no interruption to the mails or the travel; for it is hardly to be supposed that serious accidents of this character on both routes should happen at the same The result of it all is, that the connection between the joint com- panies and the Philadelphia and Trenton Railroad Company, in all its stages, has been prompted by a strong feeling that the inter¬ ests of the joint companies, as, well as of the state, imperatively demanded it, and that their connection with the state would be thereby rendered more satisfactory, and more to the mutual advan¬ tage of both parties. JNO. R. THOMSON, Scc’y Joint Board. January 8, 1850. STATEMENT B. CAJtDEX PERRY COMPANY. The Camden and Amboy Railroad Company paid the ferry com- piiny, for the crossing of their passengers when the'lines were run via Camden, in spring, summer, and fall, five cents each, and in winter ten cents. Commenced in October, 1838, and continued at those rates to the winter of 1848 and 1849, when the winter rate.s were reduced to five cents. The Philadelphia and Trenton railroad lines, when run via Camden, paid, for the morning line five cents, and'for the night line ten cents, for each passenger, in spring, summer, fall, and The above charge embraces passengers and baggage. The market line and way passenger lines, via Camden, paid the ferry company orie-fourth of the amount received for marketing and freight (the amount returned by conductor in way bill). The transportation, when run via Camden, paid the ferry com¬ pany— For through freight, 6 cents, “ cheap “ 1 “ per 100 lbs. Since the 1st of January, 1847— For through freight, 4 cents, “ cheap ‘‘ 1 “ per 100 lbs. 10 CAMDEN PEBRY COMPANY. The joint companies are the owners of 1271 shares of the stock of the Camden Feiry Company, Yalued at 50 dollars a share, or 63,550 dollars. By the act of incorporation of the Camden and Amhoy Railroad and Transportation Company, in the seventh section, it was made their duty to provide suitable steam, or other ve.?sels, at either ex¬ tremity, for the transportation of passengers and produce from city to city, so that no delay shall occur for rvant thereof. At the time of the completion of the railroad to Camden, there w'as no ferry at that terminus of the road; and the ferry boats in the river W'ere of a size and character unsuitable to the netv busi¬ ness about to.be introduced on it. The company therefore built two ferry boats, the State Rights and the John Fitch, upon a scale much larger than any previou% ' used on the ferries, and calculated to keep the communication at all times open through heavy ice between Philadelphia and Cam¬ den. which had. never been accomplished before. They also con¬ structed suitable slips, docks, and wharves, and erected a commo¬ dious hotel at Camden, for the accommodation of the travelling public. But on the - day of-the states of New Jersey and Pennsylvania incorporated a ferry company, called.the Philadel¬ phia and Camden Steamboat Ferry Company, with such limitations, as to the prices to be charged for the ferriage of persons and pro- ]ierty, that it was deemed most to the interest of the joint compa¬ nies to relieve themselves from the necessity of keeping up a ferry on their own account between these places, and to employ the agency of this new company in transacting this part of their busi- And, for this purpose, a sale was made to this new company of the steam ferry boats State Rights and John Fitch, the slip and adjoining northern pier, and the tavern, lot, and stables connected with it, at a valuation thereof; and the joint companies then sub- •scribed the whole amount of such sale to the capital stock of the ferry company. The only connection existing between the joint companies and the ferry company, is the interest of the joint companies as a stock¬ holder in the ferry company, and in making use of the boats of this company in carrying passengers and produce between Camden and 11 Pliiladelpliia, for ivliicti tolls have been paid from time to time, as they accrued. The tolls paid are specified on the first page of this statement. It may be proper to add, that, for the purpose of enabling the ferry company to perfect its arrangements, on such a scale as to afford the greatest degree of facility and freedom from interruption to the transportation of passengers and property across the Dela¬ ware, between Philadelphia and the terminus of the Camden and Amboy railroad, the joint companies, in the year 1840, advanced to the ferry company, by way of loan, 837,500 of the bonds of the .8307,000 loan authorized by the stockholders in January, 1840, and $6743.30 in cash; which advancement, with the interest thereon, has been settled and paid, and gone into the general receipts of the joint companies. It is proper to add further, that the amount of stock held by the joint companies in that company is 1271 shares, the par value of which is 850 per share. JNO. R. THOMSON, Scc'y Joint Boanl .1 anuary 8, 1850. STATEMENT C. TJtAXSPORTATION BY THE KAILltOAD COMPANY. When the railroad company commenced operations, the business- of transportation, between the cities of Now York and Philadelphia- was principally conducted by the Union Transportation Line, owned by the firm of Hill, Fish & Abbe. The mode by which the business was then conducted, was by wagons across the state of New Jer¬ sey, sometimes by way of Now Brunswick and Trenton, and some¬ times by way of South Amboy and Bordentown. Wagons were also frequently employed, in the winter season, between Trenton and Philadelphia, as well as between Now Brunswick and Perth Amboy. When navigation permitted, the goods by this line were trans¬ ported in steamboats and other vessels, by the river Delaware on 12 the one hand, and by the river Raritan and Staten Island sound on the other. On the 24th of January, 1833, they were induced to commence tlie transportation of their goods on the railroad, which they did from that time until the 1st of April following, at a reason¬ able compensation allowed to the railroad company for tolls; at the same time paying to the company, from the 1st of January to the 1st of March, in the same year, fifteen per cent, on the freight of such goods as were transported in the company’s steamboats, either on the river Delaware or on the river Raritan and the sound; and in the month of March paying the company fifteen cents per hun¬ dred pounds for such transportation. From the 1st of April, 1833, the railroad company assumed the business of transportation between the two cities, employing Hill, Pish & Abbe, who, from long experience, had acquired much knowledge and skill in this branch of business, as agents, at a com¬ mission of thirteen per cent, on the net proceeds, after deducting. cuiTent expenditures of the business; and that firm relinquished their line and the good will of their business to the company. This arrangement lasted until the end of the year 1834. On the 1st day of January, 1S3.'5, the transportation business was transferred to the New Brunswick Steamboat and Canal Transport¬ ation Company, which company conducted it on their own respon¬ sibility until the 1st of April, 1846. The terms of the arrangement with this company, during that period, were as follows: on all regular through freight, they paid the railroad company $7.64 per ton, namely, eight cents per ton per mile, or 84.88 per ton for the v/bole length of the railroad (61 miles), and $2.76 per ton for steamboat transportation. On way freight, they paid $2.44 per ton until the 1st day of September, 1835, after which time it was always $2.44 per ton for railroad carriage, and 81.38 per ton for steamboat transportation, except during the winter of 1835-6, when it was one half of those rates. Prom the year 1840, inclusive, the New Brunswick company were allowed to carry certain coarse articles, paying low freights, at a lower rate of toll, being charged therefor, in that year, at the rate of $1 per ton, and subsequently at the rate of $4.88 per ton. In the winter of 1840-41, the proprietors of the Merchants and Swiftsure lines, which were regular and permanent lines of trans¬ portation through the Delaware and Raritan canal, between New York arid Philadelphia, were allowed, at the close of canal naviga¬ tion, to forward their freight (such of it as they could retain in that 13 season of the year) over the railroad, between Camden and Amboy. Tins facility was granted to those lines in order that their regular canal business might not suffer from a total suspension during the winter months, a circumstance of which those who were engaged in the outside transportation by sea would not fail to take advan¬ tage. This being the object of the facility extended by the railroad company to tliese canal lines, they were charged, in that and the succeeding winters, such rates as would barely enable them to keep up the business without pecuniary loss, and which were fixed in each case on an examination of their accounts of receipts and disbursements at the winter’s close. These rates have consequently varied for each winter, ranging from S3.50 to 62.24 per ton. Under these various arrangements, the railroad company have, provided and run the locomotive power and cars necessary for the transportation of the freight, which was handled by, and remained in the custody and under the care and control of the New Bruns¬ wick company, who were liable for, and paid all damages incurred by the loss or injury of goods. In addition to the before mentioned regular rates of toll, paid by the New Brunswick company to the railroad company for the transportation of freight, the former company were required to pay 61500 per month, from the 25th of February 1841, to the 1st of July, 1842, amounting to the sura of 824,200 for the use of steamboats for transporting freight on the river Delaware between Philadelphia and Bordentown. On the 1st day of April, 1840, the Napoleon company rclinqnisli- ed the business of transportation on the railroad, since which time it has been conducted by the railroad company itself. The above explicit statement of the various arrangements with regard to transportation on the railroad nearly supersedes the ne¬ cessity of any explanation of the motives and view's with W'hich the said arrangements were made. One principal motive of the railroad company for relinquishing the business of transportation on the road, and turning it over to the New' Brunswick company, was to avoid the responsibility for losses and damages which the situation of common carriers necessarily incurs. Such has been the seventy of the law, as explained by the courts throughout the country, and enforced by the verdicts of juries, that it is scarcely possible to escape from liability, even when every precaution has 14 been taken which skill, experience, and foresight could provide against accidents. To convey an idea of the extent of the responsibility incurred by common carriers between New York and Philadelphia, by rail¬ road and steamboat, it may be proper to state, that it not unfre- quently happens that property to the amount of half a million of dollars is carried in one boat, from Amboy to New York and Bor- dentown and Philadelphia. Goods to the value of ten thousand dollars are frequently carried over the road in a single crate. Da¬ mages to property in a single barge have been assessed at fifty thousand dollars, and an accident occurred last year to a barge in the river Delaware, in consequence of which, though it was loaded with an unusual quantity of low priced articles, and of such as are not greatly, if at all injured by water, the New Brunswick compa¬ ny were obliged to pay damages on the cargo to the amount of twenty thousand dollars. The responsibility of such a business tho joint companies desired to avoid, as fur as was consistent with their duty and obligations to the public; which never extended further than the establishment of a line of communication between the two cities, by constructing and keeping up a railroad across the state, and providing , steamboats or other vessels to ply at each terminus thereof. It was therefore deemed wise and prudent that the great responsibility alluded to should be assumed by some other compa¬ ny or association of capital and established credit. It was also the opinion of the joint companies, that it would be more advantageous to them to receive simply the lolls to which they were entitled for the use of their road and steamboats, without incurring any of the expense necessary for receiving, handling, taking charge of, and delivering the goods, than it would be to receive the freight of those goods, and be liable to that expense, which would have amounted to one-fifth of the receipts. Erom the time when the New Brunswick company undertook this business, on the 1st of January, 1835, until they relinquished it, on the 1st of April; 1846, they transported over the railroad 184,347 tons of through freight, and 42,127 tons of way freight, and paid the railroad company therefor the sum of §1,463,838.81. In March, 1846, tlie New Brunswick company, regarding their compensation as not equivalent to the risks they ran, addressed a letter to the executive committee of the joint companies, in which they stated that the compensation which they were then receiving was equal only to one dollar for every §34,000 worth of property 15 carried, and declined the further transaction of the business on the terms upon which they had heretofore been doing it. It should be further observed, that the joint companies, being equally interested in tlie railroad and canal, the arrangements made with the New Brunswick company, who were proprietors, or joint proprietors, of the principal lines established for the transportation of merchandise between New York and Philadelphia, through the canal, were so adjusted as to secure the combined interest of the joint companies in reference to both works. This policy required that the New Brunswick company should submit to such regula¬ tions and arrangements, with regard to either branch of the busi¬ ness, as tbe aggregate interest of the joint companies should re¬ quire. The result frequently was, that a profit realized by the New Brunswick company on one branch of the works, was counterba¬ lanced by a corresponding loss on the other. A tabular statement is hereto annexed, showing the amount of the railroad transportation performed by the New Brunswick com¬ pany, whilst it was in their possession, and the receipts of the Cam¬ den and Amboy Railroad Company therefrom. .INO. R. THOM,SON, Scc’y Joint Board. .lanuary 8, 18-50. n STATEMENT D. CANAL TRANSPORTATION. After tlie completion of the canal, in 1834, it became a question of grave importance to the joint companies, whether they should engage in the business of transportation thereon themselves, or should endeavour to induce others to do the work. Ou the one hand, it was argued, that by leaving the business in other hands, the companies would lose the benefit of that unity of purpose, and that zealous interest in developing the capabilities of their works, which would naturally flow from the projectors and proprietors themselves, and which are absolutely necessary to give the requi¬ site energy for insuring success in an enterprize of such magnitude. On the other hand, it was thought extremely imprudent, ou the part of the joint companies, after e.xhausting, in the construction of their works, all their capital and nearly two millions of loans, to incur the additional expenditure requisite for purchasing and con¬ structing boats, and for carrying on the heavy and complicated business of transportation, attended with all the risks of loss and destruction of property, and responsibility of carriers, which such an undertaking would necessarily impose. The latter considera¬ tions prevailed, not only in the adoption of a resolution, no't to en¬ gage in transportation on the canal, but, as has been shown in the explanatory statement made with regard to transportation on the railroad, led to the relinquishment of that branch of business also. At the same time, in order that the prosperity of the works might not be left wholly to depend on the operations of individuals or associations, 'whose interests might clash with the true interests of the joint companies, or whose partial and limited views might not embrace the wide range of resources available for building up their highest prosperity, it was deemed advisable that some of the principal stockholders of the joint companies should connect them¬ selves with, and give a controlling impulse to some association that would undertake the transportation of merchandise across the rail¬ road and through the canal. The plan was proposed to the stock¬ holders of the New Brunswick Steamboat and Canal Transporta¬ tion Company, better known as the Napoleon company, (about which 80 much has heen said, and so many misrepresentations have been made,) whose charter was sufficiently liberal for the attain¬ ment of the objects in view. The proposition was unanimously accepted by them, and an increase was made to the capital of that company, for the purpose of raising the funds necessary for com¬ mencing operations. They assumed the transportation business on the railroad in January, 1835, _as has been seen in the communica¬ tion already made on that subject, and immediately commenced the construction of barges for the transportation of merchandise and coal through the canal. A sufficient number of steamboats was at the . same time put under their control, to accomplish the necessary towage of boats to and from either terminus of the canal. In the course of the season of 1835, they completed a number of barges, all of the largest class adapted to canal navigation, and were prepared to do a pretty extensive business in the freighting of merchandise and coal. At a later period, they engaged in the business of procuring coal from the Pennsylvania mines, and taking it through the canal, in furtherance of one of the leading objects which the joint companies always cherished, namely, a diversion through the canal of the great coal trade carried on from Pennsyl¬ vania to New York and the eastern states. In the mean time, in the spring of 1836, the New Brunswick company, at the instance of the joint companies, formed a connection with C. & F. King & Co., of Philadelphia, and Miller & Banker, of New York, who had been largely engaged in the transportation of merchandise coastwise be¬ tween the cities of New York and Philadelphia, and who had, prior to this time, established the Merchants Line, for the transaction of a similar business through the canal. The skill and experience which these associates brought with them to the management of this branch of, business, was soon evinced by the great increase of business on the canal. In September, 1838, the same parties established another canal line, which they called the Swiftsure Line, originally intended to carry, at a cheaper rale, freights requiring less despatch. These two lines have, from thence to the present time, transacted much the largest portion of the business of freighting merchandise be¬ tween Philadelphia and New York, through the canal, being for many years past the only regular and permanent lines establislied for that purpose. They-also commenced, about the same time, to run aline be¬ tween Philadelphia and Albany, which they called the Albany 19 Union Line, and which they continued for several seasons. In the latter part of the year 1S41, the other parties having relinquished their interests in these lines, the New Brunswick company became the sole proprietor thereof, and continued to carry on the Mer¬ chants and Swiftsure lines, through agents established in New York and Philadelphia, until the close of the past season (1849), but have now sold out their interest to other parties. They had already disposed of their coal barges in the early part of the year 1847. During the operations of this company and their associates on the canal, which have, in fact, been conducted in subserviency to the interests of the joint companies, they have expended, in capi¬ tal, nearly two hundred thousand dollars in the construction and purchase of barges, steamers, and other vessels, exclusively for the navigation of the canal, and have sustained large losses in the coal and other operations, from time to time undertaken with the view of keeping these vessels constantly employed. In the mean time other lines have been established between Philadelphia and Albany, Philadelphia and liartford, and Balti¬ more and New York; and one or two additional lines ran for a few early seasons between New York and Philadelphia. With most of these lines, the canal company has had special .ar¬ rangements with regard to canal tolls on general merchandise. The Merchants and Swiftsure lines, since the month of September, 1836, have always paid twenty-five per cent, on their bills of freight; and the other lines, established since that time, have also usually paid a per centage on their bills of freight, adapted to the particular cir¬ cumstances of the routes which they occupied, the details of which have been laid before the commissioners in the evidence which has been taken on the subject. The policy of making these special arrangements with perma¬ nent lines for a per centage on the amount of freight, in lieu of specific tolls, was dictated by various circumstances affecting the interests of the canal company and the joint companies. When the canal was opened for public use, it was tbe desire and intention of the directors to make it equally free to all who might ^vish to use it, on precisely the same terms. Lists of toll rates were printed and circulated. Individuals engaged in the freighting busi¬ ness between New York and Philadelphia were invited and urged to abandon the coast, and make use of the canal. The firms of C. & F. King & Co. and Miller & Banker, before mentioned, built and fitted up barges for the purpose, and com¬ menced regular lines for freighting merchandise by this route; and other persons started vessels which did more or less freighting through the same channel. Experience soon taught the canal company that they were the victims of constant and extensive frauds, that but a small portion of the cargoes of many vessels were reported to the collectors for tolls. It was clearly impossible to unload every vessel that pre¬ sented itself at the terminus of the canal, for the purpose of ascer¬ taining its cargo with correctness; and it was also utterly imprac¬ ticable, by a weigh lock, to attain the object on a cargo of assorted merchandise, such as was usually carried by regular transportation lines. These were difficulties to he overcome. The desideratum with the canal company was, a plan to afford the most enlarged facilities to the whole commercial community, and at the same time to protect themselves from frauds and impositions. Experience had demonstrated these two interests to be in oppo¬ sition, and that it was the interests of the canal company which had invariably to suffer. This fact confirmed the conviction of the joint companies, as to the expediency of the course taken with regard to the New Brunswick company in relation to canal transportation. And it was principally with the view of being able to induce afai*r exhibition to the canal company of the actual transportation, that the New Brunswick company, in the spring of 1S36, connected it¬ self, as before mentioned, with King & Co. and Miller & Banker, who were doing much the largest business, through the canal, of all that were concerned in it, except the New Brunswick company itself. It was still found, however, that instances of fraud occurred, and finally, in September of 183G, the plan was adopted which has ever since, with but slight modifications, been steadily pursued. This plan was—1st, the appointment of an agent by the canal company, whose duty it was to keep the accounts of the transport¬ ation business, and to lay them before the executive committee once every month for examination; and, 2d, the payment, by the parties doing the business, of twenty-five per cent, on the amount of their frieghts, in lieu of specific tolls. The plan thus fallen upon was also called for by, and continued from other considerations of equal, and, perhaps, greater import¬ ance to the permanent prosperity of the canal. The canal, company was deeply interested to secure the esta- 21 blishnient and continuance of regular and permanent lines of trans¬ portation through the canal. Without such regularity and perma¬ nency, it could not he exp.ected that this route would ever acquire the confidence of the mercantile community, so as to divert to it any large proportion of the immense trade constantly going on be¬ tween the great cities on either side of the state. The establishment of such lines of sufficient force and strength to meet the increasing wants of trade, could not be effected without a large outlay of capital, and their operation and management could not be supported witliout constantly involving heavy expense. It was soon found, therefore, that the great object which the company had in view could only be attained on the basis of some arrange¬ ment with regard to tolls, which would enable those who might engage in the hazardous experiment to meet the exigencies inci¬ dent to a business of this-kind, under all the peculiar circumstances of the case. The competition of the coasting trade by sea, rendered it necessary that they should have it in their power so to regulate their charges for freight as to meet the fluctuations of that compe¬ tition, which a fixed and specific toll (sufficiently remunerative to the canal company) would not have permitted them to do, without ruinous sacrifices to themselves. In like manner, the transient competition of vessels resorting to the canal as a convenience, in the intervals of more profitable em¬ ployment on some other route (hostile, perhaps, to that of the ca¬ nal), rendered necessary for those who devoted exclusive attention to the navigation of the canal, the power to regulate and modify their standard charges of transportation in such manner as to re¬ tain the regular flow of custom on which they had to depend. In addition to these considerations, another of equal consequence to the joint companies—the encouragement of transportation by the railroad—rendered it important to them to make it the interest of those who were engaged on the canal to take the coarser and cheaper classes of freight, and not to set the canal and railroad in deleterious opposition to each other. The transportation of coal through the canal has always been an object of peculiar solicitude with the joint companies; and a great point was gained when it was fully demonstrated that this article could be safely and profitably transported from the mining region in Pennsylvania, tlirough tlie Delaware and Raritan canal, to New York without transhipment. The joint companies have spared no expense to demonstrate this 23 fact, and to turn the current of the coal trade through the canal, as will be more fully shown in their statement on the subject of their Pennsylvania coal lands, and the coal operations connected there¬ in addition to the advances connected with those operations, other encouragements of various kinds have always been held out, either by way of drawback, suited to the current rates of freight, or in other modes, with the fixed and unvaried purpose in view of fostering this important source of revenue to the joint companies. This motive has dictated the whole policy of the companies in all the arrangements they have made on this subject. With a view of testing the experiment of transporting coal in strong steam propel¬ lers, constructed in such a manner as to be capable of navigating with security and despatch the various waters branching out from the city of New York, as well as the canal, a resolution was passed by the executive committee of the joint companies, in November 1841, in compliance with a proposition submitted by Commodore Stockton and others, to the effect, that if they would build a certain number of barges to carry coal to Albany, or places east of New York, they should have the privilege of doing so for three years free of toll, paying only the transit duty accruing to the state there¬ from. In accordance with this resolution. Commodore Stockton, at considerable expense, consti'ucted four iron steamers of the largest class capable of running on the canal, and employed them for part of two seasons in the transportation of coal and merchandise, (pay¬ ing toll on the latter) and then sold them. The experiment resulted in a considerable loss to its enterprizing projector. It had the effect^ however, of turning the attention of other parties to the Albany route, which has since induced the establishment of other lines be¬ tween Philadelphia and Albany, which have been the source of much profit ,to the canal company. This arrangement with the Commo¬ dore is only adverted to particularly because he was a director of the joint companies, and an explanation of the transaction has been desired by the commissioners. In a general point of view, it is simply one of a series of measures resorted to by the companies (the details of which are in the knowledge of the commissioners) for developing the resources of the canal, with a special reference to the transportation of coal from the mines of Pennsylvania. In reference to, the vessels appropriated by the joint companies to the towing of boats and barges on the Delaware and Raritan, to and from each terminus of the canal, it is proper, in this connection, to add a few words of explanation. The New Brunswick company having built a large number of canal barges, constantly requiring towage on the rivers Delaware and Raritan, steamboats on each river were put into their charge for the purpose of towin’g, not only their own vessels, but such oth¬ ers as had not sails, and needed an aid of this sort. They were to defray the expenses of the steamboats, and to credit them with an amount agreed upon by the joint companies for the towage of their own barges, and receive an amount for the proceeds arising from the towage of other boats. As the business of the canal (especially in the department of coal transportation) increased, this branch of operations became of considerable importance; and the joint com¬ panies realized from this source, up to the year 1846, when they took the charge of the boats into their own hands, upwards of fifty- four thousand dollars. The rates paid by the New Brunswick com¬ pany, for the towage of their merchandise and coal barges, have, been equal to those paid by others. But it has never been an object with the joint companies to make this branch of business a distinct source of profit, beyond the cost of keeping it in operation. It has been considered as auxiliary to the greater interest of the canal, and as one of the main facilities of its navigation; and the rates of towage have been fixed at such low grades as to-oiler the greatest inducement to transporters, consistent with the actual expenses in¬ curred, to resort to the canal as a medium of communication be¬ tween New York and Philadelphia. The commissioners being already possessed of the details of this subject, it is deemed unnecessary to enter into further particulars with regard to it. The annexed tables will show the amount of canal tolls, and the charges for steam towage, which have been paid by the Merchants and Swiftsure lines, and by the coal barges of the New Brunswick company, to the joint companies, up to the 1st day of October last, showing a result of $535,719.81 paid for tolls, and $269,258.70 for steam towing. JNO. R. THOMSON, Sec’y Joint Board. January 8, 1850. Canal tolls paid Delaware and Raritan Canal Company and steam towing to Camden and Amboy Railroad Company. 25 STATEB'IENT E. In the early part of the year 1834, the secretary of the Joint board, and transfer agent of the railroad company, since deceased, was found to be in arrears to the company to the amount of 821,- C29.S3, for instalments on stock. The company, not being satisfied that this amount should stand on his personal responsibility alone, required him to give collateral security therefor. For this purpose he executed to the treasurer, for the use of the company, the fol¬ lowing bonds and mortgages, dated February 22d, 1831, I'iz: 1. A bond and mortgage for 83000, on a farm called the Heaton farm, of about 115 acres, near the mouth - of Rancocus creek, in Burlington county, and a mca- 83,000.00 dow lot of 33 acres. 2. A bond and mortgage for $0000, on what was called the Thompson point property, consisting of a tavern house, fishery, and about 300 acres of land, at Thompson’s point, in Gloucester county, about twelve 0,000.00 miles below Philadelphia. 3. A bond and mortgage for 85000, on the Atlantic hotel, on Cape island, and on about 130 acres of 5,000.00 land in the lower township of Cape May county. 4. A bond and mortgage for 87620.83, on a mansion house and farm near Mount Holly, in Burlington • county, bought of the estate of John Bispham, de- 7,620.83 ceased, about 200 acres. 821,620.83 It was soon after discovered that he had improperly issued cer¬ tificates of stock, to a considerable amount, which he had pledged as security for money borrowed; which certificates the company weve obliged to call in, as they increased the capital stock to an amount beyond the limitation of the charter, and no instalments had been received for them. The company was obliged to pay to the parties having possession of this stock the aggregate sum of $41,795.50, making the total indebtedness of the transfer agent ■$63,425.33. When this fact become known to the board, he promptly came forward and offered to transfer to the use of the company all the property which he had in his possession, being a large amount of real estate, hoth in New Jersey and Pennsylvania, as well as a con¬ siderable amount of personal property. Accordingly, in the montli of June, he conveyed to Joseph H. Dulles and William J. Watson, in trust for the payment of whatever his liability might be found to he, the following property, to wit: ‘ In • Pennsylvania. 1. By deed of 20th June, 1834, a tract of coal lands, situate m Norwegian township, Schuylkill county, Pennsylvania, said to con¬ tain 839J acres, and consisting of three distinct but contiguous tracts, called, respectively, the Phoeni-x park tract, the John Blue or Miller tract, and the Umbohacker tract. The title to some por¬ tions of this land was disputed, and in the adverse possession of other parties. 2. By bill of sale, of 20th June, 1834, all the persenal pro¬ perty, consisting of tools and mining apparatus, situated on the Phoenix park tract. In New Jersey. 1. By deed of 23d June, 1834, the Heaton farm and meadow, at the mouth of the Rancocus creek, in Burlington county, above mentioned. 2. By deed of 23d June, 1834, the Thompson point property, in Gloucester county, above mentioned. 3. By deed of 23d June, 1834, the Cape May property, includ¬ ing the Atlantic hotel, above mentioned. 4. A mortgage of 23d' June, -1834, on the mansion house and farm near Mount Holly, above mentioned, conditioned for the pay¬ ment of S9000, being a sum sufficient, in addition to the previous mortgage of $7629.83, to cover the whole value of the property. 5. By deed of 28th July, 1834, to Abraham Brown, two lots in Camden, consideration SSOO. In, Pennsylvania (additionalJ. 1. By deed of 31st January, 1839, to Abraham Brown, a lot at Schuylkill haven, being a landing lot, numbered 21, on a plot of said town, consideration S5. In 1835, the joint hoard directed Dulles & Watson to convey the foregoing property (transferred in trust to them) to Abraham 27 Brown, esq., of Mount Holly; in consequence whereof, they exe¬ cuted to Abraham Brown the following deeds and assignments, to 1. A deed, dated 6th March, 1835, for the Heaton farm and thirty-three acres of meadow, on the Rancocus; 2, the Thompson point property; 3, the Atlantic hotel, on Cape island, and the other Cape May property. 2. An assignment, dated 6th March, 1835, for the mortgage for S9000 on the Mount Holly mansion and farm. 3. A deed, dated 16th November, 1835, for the Pennsylvania coal lands, on the same trust upon which they had been originally conveyed to Dulles & Watson. In March (15th), 1837, Abraham Brown made an agreement with R. M. & L. Lewis, of Philadelphia, for the sale to them of about 230 acres of the Phoenix park tract, being that portion lying east, of the Mine-hill and Schuylkill haven railroad and the west west branch of the Schuylkill, for the sum of $25,000, the deed therefor to be executed and delivered on the 1st of May following. The Lewises declined this purchase, in consequence of certain defects or doubts in relation to the title, which, as they alleged, wore sub¬ sequently discovered. After various fruitless negotiations on the subject, it was determined to put up these lands, so bargained to the Lewises, to public sale, the remainder of the coal lands having in the mean time, as we shall presently see, been contracted to J. C. Ofterman. They were accordingly exposed for sale, on the 3d January, 1838, at the Exchange, in Philadelphia, and no one over¬ bidding the sum of S25,000, which Commodore R. P. Stockton bid on behalf of the companies, they'were knocked down at that price, and Mr. Brown conveyed them, discharged of the trust, to Com. Stockton. These were, in some respects, considered the most va¬ luable portion of those lands. In the month of December, 1837, Abraham Brown made an agreement with John C. Offerman, of Pottsvdle, to sell him the re¬ sidue of the coal lands, those lying to the westward of the Mine- hill and Schuylkill haven railroad and the W'est branch of the Schuylkill, consisting of the residue of the Phoenix park tract and the whole of the John Blue and Umbehacker tracts, and then esti¬ mated to contain 606 acres, at $100 per acre, less $7500, to be al¬ lowed to Offerman for extinguishing the claims of a neighbouring coal company to a portion of the lands. The land was to be sur- veyed, and the estimated quantity was to he corrected by the ac¬ tual survey. The articles of agreement were not executed till the 10th of January, 1838, when Offerman paid 810,000 on the principal, and $85.55 interest, being the interest bn $17,700 (one-third of the whole purchase money), which was by the original understanding to have been paid in cash on the 11th of December, 1837. The other $7700 was now made payable, with interest, on the 1st of March, 1838, when the deed was to be delivered; and after that, the other two-thirds, in two annual instalments, on the 11th De¬ cember, 1838, and 11th December, 1839. Mr. Brown appeared at the place agreed on, in Philadelphia, for delivering the deed, on 1st March, 1838, but Offerman did not ap¬ pear. It seems that some difficulty arose about the exact quantity of land. It was finally ascertained, by the aid of a surveyor sent ■from New Jersey by Mr. Brown, to be 580 acres and 13 perches, which made the purchase money $58,026.87, and, after deducting the sum of $7500, before mentioned, reduced it to $50,526.87. On the 22d of December, 1838, Mr. Brown executed a deed to Offerman for the 580 acres 43 perches, and Offerman executed, in return, a bond with a warrant to confess judgment, and a mortgage on 548 acres of the property conveyed, and on 571 acres of other coal lands, for securing the payment of $43,000, the balance of principal and interest then due on the whole purchase, after de¬ ducting the said sum of $7500 and the first payment of $10,000. These papers were left in the hands of counsel at Orwigsburgh, as escrows, not to be delivered until certain conditions were perform¬ ed by Offerman. Offerman had in the mean time, early in 1838, procured, a charter for a company, callecl the Offerman Railroad and Mining Company, for digging and selling coal, &c., and had gone into possession of the lands. He also procured some old out¬ standing claims to the title, and refused to comply with the terms of sale, or to give up possession of the land. Mr. Brown commenced an action of ejectment against him, which was protracted, by various delays, until the year 1841, during which time Offerman, or the company so chartered, had added considerably to the value of the land, by erecting various buildings and improvements on it, opening coal veins, &c., taking out during the same period a con¬ siderable amount of coal. In January, 1841, the joiiit companies, desirous of terminating the litigation and getting possession of the land, agreed with Offer- 29 man to submit the whole difficulty to an arbitration. The arbitra¬ tors made their award on the 11th of February, 1841, charging Offerman with the interest of ,the balance of purchase money and rent for the coal which he had excavated, amounting in all to $8914.80, and giving him credit for the original payment of §10,000, and §12,000 for his improvements, directing the company to pay him the balance of §13,085.20, and ORerman to give up pos¬ session of the land. - 1841.—Measures were now again taken to sell the land, and on the 2d of December, 1841, they were accordingly exposed for pub¬ lic sale at the Philadelphia Exchange, including the landing lot at Schuylkill haven, and were struck off to Com. Stockton, on behalf of the joint companies, for §17,438.06. Mr. Brown executed a conveyance to Cora. Stockton, and thereupon the joint companies became beneficial owners of the whole tract originally assigned, including the lot at Schuylkill haven. It should be observed that certain portions of the lands have always been in the possession of other persons claiming adversely, and suits are still pending in rela¬ tion thereto. On the 30th day of May, 1840, articles of agreement were enter¬ ed into by K. F. Stockton, with the approval of the joint board of directors, with Robert W. Packer, of Reading, Berks county, Pennsylvania, agreeing, upon the payment of the whole consider¬ ation money, to convey the whole tract of coal lands, containing, as then claimed, 813 acres 93 perches, to the said Packer, with a proviso, that if any portion of the lands should be recovered atid taken away by any older or better title, that then Packer should be entitled to a reduction of §100 per acre for all that should be so recovered and taken away. And, on his part. Packer agreed to pay for said lands the sum of §81,300, with interest from date, in the following payments, ivV; §5000 cash down, and §10,000 during that year (1840), and §15,000 in every succeeding year, by quar¬ terly payments, until the whole amount should be paid, subject to the condition, that the title be fully established to all the land; and if the land tunis out more than §15,000 worth of coal in any year, at twenty cents per ton, then Packer to pay so much more during that year. Besides some other unimportant conditions, it was fur¬ ther provided, that he should enter into immediate possession of the premises, and pay all assessments and taxes thereon. This contract is still subsisting, and some payments have from time to time been made thereon. Mr. Packer is deceased, but it is 30 the intention of his representatives to go on and complete the puv- This is the history of the coal lands. The companies have never had any interest in any others, except to lease some neighbouring mines for the purpose of increasing their shipments of coal, as will be mentioned hereafter. When the companies had obtained to their use the absolute title to the easterly portion of the Phoenix park tract, in January, 1838, the directors conceived the design of making this property tributary to the resources of the Delaware and Karitan canal, by creating and diverting an extensive coal trade through that work, directly from the'Scbuylhill region to New York. This was a large project, and required the application of considerable capital to carry it out. The experiment of taking the coal boats built for navigating the Schuyl¬ kill canal, with a burthen not exceeding sixty tons each, through to New York, thereby avoiding any transhipment of the coal, was resolved on. From Philadelphia to Bordentown, and from New Brunswick to New York, of course, these boats would require to be towed by steam power. The company had already several steamboats attending on the canal, engaged in the towing business. This steam force was increased to meet the wants of the increasing trade,; and for the purpose of carrying out the design which they had formed, as above mentioned, they resolved to go to the ex¬ pense of mining coal on their lands, which had thus been acquired, as well as on adjoining lands, should that be found necessary to render the undertaking effectual. For this purpose, early in 1838, they selected R. B. Neleigh as the agent for superintending the operations of mining and procuring coal, making the necessary erections for the convenience of miners, sinking shafts, and laying the necessary roads to connect them with the nearest public line of communication. . It being necessary to provide the means for transporting the coal thus procured, an agreement was made, at the same time, with A. & R. W. Packer to advance them, by way of loans, the requisite funds to enable them to construct and operate a large number of boats, to run down the Schuylkill canal,' and from thence, by way of the Schuylkill and Delaware rivers, to the Delaware and Raritan canal, and'so on to the city of New York. The amount advanced by the joint companies for these purposes was the sum of 8117,000, mentioned in the report of the board of directors in 1840. These arrangements, and the motives which led to them, were very fully explained at the meeting of the stocklioldcrs in January of that year, and received their unanimous approbation; and the result has fully equalled the expectations which were from the first entertain¬ ed by the directors in regard to it. The direct pecuniary returns of that investment, it is true, were never commensurate, and it was never anticipated that they would bo commensurate with the amount expended. But the experiment has had the influence to . attract to the canal an amount of transportation from the Pennsyl¬ vania mines, that has become one of the principal sources of reve¬ nue of the joint companies; so that, in an enlarged view of the effects of this investment, an immense pecuniary return has been realized. But the immediate returns of the transaction cannot be said to have involved a positive loss, for the increased value given to the property of the company by the improvements that have been effected, has enabled them to dispose of it on advantageous terms, as has been shown in the foregoing statement, and as the commissioners will more fully see by an examination of the con¬ tract with Mr. Packer, which will be submitted to them herewith; so that a security which at one time, it was feared, would not re¬ sult in any direct advantage to the joint companies, will very pro¬ bably, with what may bo realized from other sources, go far towards cancelling the defalcation out of which it arose. But aside from this, the company have already derived from this source cash payments to the amount of $64,440.70, including drawbacks of the Messrs. Packer on tolls retained by the'canal company, besides an amount of $17,140.08 in coal. In addition to these sums, the company has several uncollected claims against individuals purchasing coal, or to whom money has been advanced out of the proceeds of coal sold, for the purpose of aiding them in mining operations, amounting to the further sum of §8,552.99. There is also a balance in the hands of the coal agent,' awaiting the adjustment of some unliquidated claims; but \vhat amount, if any, will remain after the settlement of these claims (which are still pending) is uncertain. There is also still due on the contract of R. W. Packer, for the purchase of the coal lands, over $66,000, principal, besides interest, which is con¬ sidered good to the amount due, if the claims of the company to the title of the disputed portions should be settled in their favour. In conclusion, it is proper to say, that Messrs. A. & R.W. Packer have fully settled the amount loaned to them, and a settlement has been had with the agent, Mr. Neleigh, who has duly accounted for .ill the money that passed through his hands. It may be addetl, that the property in this state, assigned by the late transfer agent as aforesaid, has mostly been sold; but being much of it subject to encumbrances, and having involved the pay¬ ment of other expenses, and the accounts of the late trustee, Abra¬ ham Brown, esq., not being yet settled, it is uncertain what amount will be finally realized from that source. JNO. R. THOMSON, Sec’y Joint Board. January 8, 1850. REPORT OP ENGINEER OP RAILROAD. Camden and A.mboy Railroad oppice, Bordeutown, N. .T., Jaiiumy 1,18.50. To Messrs. Robertson, Wurts, and Hulme, commissioners. Gentlemen, —In communicating to you the information you de- .sire, I will refer you, in the first place, to a report, made by me in .January, 1840, published with the printed report of the directors for that year, giving a particular description of the formation and superstructure of the Camden and Amboy railroad, including its branch from Bordentown to New Brunswick, and the spur from Trenton to Delaware bridge. As a supplement to that report, I will now specify the permanent improvements that have been made to the road since that time, describe its present condition, and give a complete list of the real estate now belonging to the company, observing, by the way, that some items of property, which were enumerated in 1840, will not appear in the list now given, in conse¬ quence of having been destroyed, disposed of, or replaced by sub¬ sequent erections. • In 1841, the flat rail between the bridge over the Crosswicks creek and Trenton, 5J miles, was replaced with I rail, weighing 47J lbs. per yard; also J of a mile between Bordentown and Cam¬ den, near the Pennsauken creek, thus abolishing from the whole road the use of the flat rail. Between Bordentown and Amboy there have been relaid 1.6 33 miles of new road with iron rails, weighing 47^ Ihs. per yard, laid with cross-sleepers on stone blocks, in 1845 and 6; 16J miles relaid with iron rails, weighing 64i lbs. per yard; lOJ miles of this last distance was laid by placing cross-sleepers of oak or ches- nut upon the original stone blocks, miles laid by cross-sleepers resting upon the stone trenches, and the remainder, 2| miles, laid by placing G by 12 inch longitudinal pieces of timber upon the stone trenches, connected by cross-ties, 8 feet apart, underneath the string piece, and the rail laid immediately upon the continuous timber, 10 miles of which were laid in 1846 and 7, and the re¬ mainder in 1843 and 9. There has also been relaid one mile, with rails weighing 56 lbs. per yard; laid upon longitudinal pieces of timber, 6 by 12 inches, laid in 1848. Half a mile has been relaid with E rail, weighing 91 lbs. per yard, 7 inches high, 2J inches on the upper surface, and 4J inches base; laid with cross-sleepers upon stone blocks, in 1849, near Spntswood. The old, or remaining parts of this section of the road are re¬ quiring considerable repairs, by replacing the old and defective rails with better ones. The bridge over Crosswicks creek has been renewed, with new caps, string pieces, and covering; the posts, sills, braces, and piles have been spliced, and otherwise improved. The other bridges on this section of the road have been gene¬ rally repaired since their construction in the same manner. From Bordentown to Camden, 24 miles have been relaid with iron rails, weighing 47^ Ihs. per yard, laid with cross-sleepers; 1.6 miles with new rails, weighing 64J lbs. per yard, laid with cross-sleepers, and of a mile laid with longitudinal pieces of tim¬ ber, 6 by 12 inches, and iron rails, weighing 56 lbs. per yard. There has also been la'd 1-J miles of road with the old iron rails, taken up on different parts of the road (when the new rails have been laid), cut off at the ends (those that were defective), and placed upon longitudinal pieces of timber, 6 by 12 inches, which makes an excellent road. ■ But very few, if any, of the original sleepers are now remaining in this section of road. New ones have been substituted, and the road is generally in good order. The bridges, over Coopers, Pennsauken, Rancocus, and Assis- cmik creeks have been thoroughly repaired; the upper part of 34 them entirely renewed, and such piles, posts, and other parts as were decayed, also renewed. The branch railroad from Bordentown to New Brunswick is ill good repair and adjustment. Having been in use for eleven years, the original sleepers are fast disappearing, being replaced by new ones, and, in consequence, there have been many new sleep¬ ers placed in the road during the pak and two or three preceding years; and the road is at the present time about three-fourths re¬ placed with new sleepers. The spur of road from Trenton to the Delaware bridge has been much improved. The remainder of the flat rail is replaced with I rail, and during the past year thoroughly repaired with new sleepers. The turnouts, originally laid with wood rail and flat iron, have been relaid with 1 rail. Added to this, since the year 1840, miles of turnouts have been newly constructed, making the total length of turnouts lOJ miles. Extensive improvements have been made at Amboy, Bordeii- town, Camden, Trenton, New Brunswick, and elsewhere, by the erection of car and engine houses, shops, wharves, &c. A description of these, and other property, will be given in de¬ tail, with a memorandum accompanying this letter. It will be observed that the expenses of the railroad have in¬ creased very much, since the beginning of the year 1845, over the preceding years. There are various causes for these additional ex¬ penditures. About this time it became necessary to commence re¬ laying the road with new iron rails; the sleepers were fast decay¬ ing, increase of business required extended and new car and en¬ gine houses, wharves, shops, &c., which were built in a permanent manner, besides many new dwelling houses for workmen. With the view of indicating the character and extent of the out¬ lays which have been made in my department during this period, beyond current expenses and ordinary repairs, I will now specify the principal permanent constructions that have been erected, and the most material causes of extraordinary expenditure that have occurred. 1845 . . Urading Camden’ depot and filling wharf, §1,073 00 Camden engine house extension, 880 00 Wharf at Camden and new railroad tracks. 3,690 00 35 Camden transportation house, New Brunswick engine houSe, Amboy transportation house, Burlington wharf and improvements. Smith shops at Bordentown depot, Carpenter shop “ “ Crate house “ “ Iron rails. Sleepers, Total for this year. 18 . 46 . New wharf at Camden, Camden transportation house. Carpenter shop at Bordentown depot, Amboy transportation house. Crate house at Bordentown depot, Dwelling houses for workmen at Amboy, Burlington wharf and office. Paint shop at Bordentown, Grading Camden depot, Engine house at Bordentown depot, Iron rails. Total for this year, 1847 . Trenton transportation house, Bordentown car house (depot),' Iron rails, New wharf at Bordentown depot, Camden wharf. Wood sheds, Amboy transportation house. Sleepers, 85,279 00 807 00 2,107 00 3,567 00 3,195 00 4,436 00 504 00 15,806 00 5,273 00 846,616 00 84,471 00 1,157 00 1,137 00 1,552 00 894 00 8,911 00 1,358 00 1,283 00 1,077 00 1,483 00 59,285 00 10,501 00 $93,109 00 $4,997 00 2,663 00 74,000 00 3,590 00 1,385 00 1,875 00 2,595 00 11,070 00 Total for this year. 36 1848 . Trenton transportation and car house, 13,875 00 Car house at Bordentown depot, 3,303 00 Iron rails, 23,029 00 Bordentown paint shop, 661 00 Camden car house, 550 00 Dwellings, 1,000 00 Sleepers, 15,802 00 Total for this year, 848,220 00 1849 . AVhitehill car house, 82,196 00 Whitehill wharf property, 5,276 00 Camden car house, 4,292 00 Dwellings for workmen at Amhoy, 5,986 00 Iron rails, 6,660 00 Grading change of location at “Gravel hill,’’ 3,114 00 Grading Camden depot, 1,460 00 Sleepers, 20,292 00 Total for this year, 849,276 00 The cost of sleepers, though not properly chargeable to capital, f's included in the above specification, as showing an additional cause for increase of expenditures during the period in question over those of former years. I will now give a synoptical list and description of the real es¬ tate belonging to the company : REAL EST,1.TE. A description and account of the real estate helonging to the Camden ■ and Amhoy Railroad and Transportation Company. First. The property occupied by the railroad itself, from Cam¬ den to Amboy, 61 miles and 20 chains (estimated by supposing it to be about one chain in width of land taken for the construction of the railroad), amounts to about 490 acres. Second. The branch railroad from Bordentown to New Bruns¬ wick, 30 miles, 20 miles of which occupies one of the tow-paths of the canal; therefore but 10,miles have been purchased for the branch railroad, which estimated (and is nearly so) at one chain in width, is equal to SO acres. Third. The spur of I'oad from Trenton to Delaware bridge, 1 mile and 10 chains, which, at 50 feet in width, will make 6.S acres. Fourth. In addition to the above land, directly occupied by the railroad, the company holds a number of gores and parcels of land, which they have been obliged, in negotiation with land owners, to ])urchase in connection with what was required for the location of the road, or for the purpose of depositing the waste of excavation. Camden Depot. The land occupied for the depot, together with the shore property on the Delaware river, is 30 acres, A car bouse, 372 feet in length and 58 feet in width, and 16 feet in height, 275 feet of brick, and 97 feet frame, with paper roof, four railroad tracks, one platform, the whole length of the building, 16 feet wide, with platforms leading to the ferry slip, built in 1S49, .4 transportation house, 372 feet long and 75 feet wide, 275 feet, of brick, and 97 feet frame, tin roof, two platforms, each 332 feet long, varying from 17 to lOi feet in width, with four tracks, built in 1816, Brick engine house, 100 feet long, 51 feet wide, and 16 feet high, with tin roof, four tracks, and three pits, for the purpose of working under llio engines, Tran.sportation office, of wood, 12 feet by 12 feet. Two turnrounds, one 40 feet diameter, the other .32 feet diameter, Dive wood sheds, each 134 feet in length and 2.! feet in width. Wharves, piers, and bulk-heads, riz: AVharf or pier, 135 feet long and 50 feet wide, next the Camden ferry; liulk-head. So feet long, forming part of tho front of tile car house and transportation house slips; Wharf and pier, 380 feet into the river, 27 feet wide, and covered with plank; 13,790 00 120 on 1,000 00 1,800 00 38 Bulk-head, extending down the river 400 feet; Wharf and piers, extending into the river 350 feet, the piers 22, 27, and 38 feet in width, planked over, forming a basin, with the last mentioned pier, for steamboats and other vessels. Buildings for offices, wharves, car houses, and pro¬ perty between Camden and Bordentown depot; Frame-office at Rancocus bridge, 17 feet by 15 feet, with platforms. Frame dwelling house, IG feet square, and kitchen, 10 feet square, to, accommodate the man that attends to the draw and pumps the watei'. Water tanks, Beverly Station. Dwelling house, frame, 28 feet by 17 feet, and shed and kitchen, 12 feet by 8 feet, with platforms, for an office and for a man to attend to the office and switches, Burlington wharf projpcrly. Consists of a front of 112 feet on the Delaware river, near the public dock, of which GO feet is a wharf and landing for steamboats, with passenger office, $12,657 00 200 00 500 00 300 00 500 00 5,302 00 Whitehill Landing. Brick car house, 160 feet long, 35 feet in width, and 16 feet in height, paper roof, with two tracks, and platform whole length of building, 11 feet wide, with two gangway slips for steamboats, shed, of wood, attached to car house, 54 feet by 15 feet; Brick stable, 28 feet by 20 feet, with shed attached, 50 feet in length; 636 feet of wharf on the Delaware river; The above wharf, buildings, &c., are for the purpose of a steamboat landing, to better accommodate the public in the passenger and marketing business, it being found necessary to separate the through transportation from passengers and marketing at the Bordentown depot, 7,473 00 39 Bordcntown 'Dq)oi. Ten and a half acres of land, Car and transportation house, 35-1 feet long, of which 55 feet in length is 57 feet in width, 9S feet is 100 feet in width, 137 feet is 03 feet in width, and 64 feet is 46 feet in width, 154 feet of the roof is co¬ vered with tin, and 200 feet is covered with slate, four tracks, one platform, varying from 16 feet to 4 feet in width, and two gangways, with slips leading to steamboat; the whole of one side is built of brick, wall 15 feet high, and 256 feet of the other side brick, and the balance, 9S feet, is wood fi-ame, used for the railroad transportation freight. Brick house, with slate roof, SO feet long and 44 feet wide, for baggage crates. Brick engine repairing house, 90 feet long and 30 feet wide, 16 feet high, metallic roof and fire proof, with two tracks and pits. Brick house for coppersmith work, 37 feet long and 27 feet wide, board roof. Brick office and store room, two stories higli, 34 feet long and 19 feet wide, fire proof building, with a fire safe of brick and iron. Brick machine shop, three stories high, 76 feet long and 41 feet wide, metallic roof; Brick engine house, 255 feet in length and 37 feet in width, 142 feet with tin roof, and 113 feet with slate roof. Brick blacksmith shop, 160 feet long and 40 feet wide, attached to, and immediately in the roar of the machine shop, containing fourteen forges. Brick carpenter shop, 150 feet long and 60 feet wide, slate roof, for building and repairing cars, two tracks. Frame carpenter shop, two stories high, 106 feet in length and 30 feet in width. Brick paint shop and trimming establishment, two stories high, 55 feet long, 32 feet wide, together with an addition of 95 feet in length and 32 feet in width, one story high, which includes an apartment for drying timber. S2,918 00 11,019 00 1,399 00 3,579 00 400 00 950 00 14,097 00 3,254 00 5,573 00 1,050 00 1,944 00 40 Three lumber sheds, two of them, each, 140 feet long and 25 feet wide, the other 180 feet long and 25 feet Frame building, 57 feet in length and 48 feet in width, for repairing boilers. Frame store house, 85 feet long’and 30 feet wide, used for storing iron and other material for shops. Two wood sheds, each 108 feet in length and 23 feet in width. Four wood sheds, each 90 feet in length and 23 feet in width, One wood shed, 225 feet in length and 18 feet in width. One sheet iron water tank and frame. Wharf along Delaware river, 775 feet in length, along side of which all steamboats and other vessels may land; upon this wharf are two capacious coal yards, for boats and other purposes. Ice house, to supply steamboats, &c.. Two turnrounds, of 35 feet diameter each. Depot superintendent’s house and kitchen. Frame hoarding house for workmen, three stories high, 30 feet by 23 feet. One block of frame dwelling houses for workmen, 64 feet in length and 16 feet in width, four houses. One block of frame dwelling houses for workmen, 72 feet by 16 feet, four houses. One block of frame dwelling houses for workmen, 109 feet long and 16 feet wide, with kitchen, 15 feet long by 10 feet, for each two houses, six houses. One block of frame dwelling houses for workmen, 109 feet long, 16 feet wide, with kitchen, 15 feet by 10 feet, for each two houses, six houses, Frame house, 34 feet long and 25 feet wide, for work- Bordcniouin Station. Uordentown hotel, three stories high, 100 feet long and 40 feet wide, with dining room attached, two stories high, 60 feet by 22 feet, with stables and other outbuildings attached, frame house, adjoin¬ ing hotel, 18 feet by 16 feet. 8820 00 825 00 400 00 980 00 832 00 400 00 300 00 15,725 00 500 00 1,000 00 1,500 00 1,600 00 1,680 00 1,680 00 2,700 00 2,700 00 950 00 10,280 00 41 Lot of ground on Prince-street, SO feet front, known as the Union line property, S300 00 Brick office, roughcast, 4S feet by .23 feet, three sto¬ ries high, tin I'oof, with fire-proof and office for pas¬ sengers, directors’ room, &c., 2,360 00 Frame house on Crosswicks creek, 28 feet by 21 feet, 450 00 Frame dwelling house on Crosswicks creek, two sto¬ ries high, 34 feet by 16 feet, also kitclien, two stories high, 27 feet by 16 feet, 825 00 Frame transportation bouse, 58 feet by 15 feet, with platforms, 200 00 Wharf on Crosswicks creek, extending from the Main-street public dock to the railroad bridge over the creek, 372 feet in length, and land extending back to the hill, 10,000 00 Wharf, from Main-street down the creek; 96 feet in length, together with the front on the creek, extend¬ ing 500 feet, with two frame store houses, one 24 feet by 30 feet, the other 28 feet by 16 feet, 6,175 00 nriLDIXOS FOR OFFICES, STATIONS, ETC., liETWEEN BOR- DENTOWN AND SOUTH AJIIiOY. Smidhilk Station. Frame transportation house, 104 feet by 16 feet, 350 00 Frame transportation house, 50 feet by 20 feet, with platforms, 150 00 Gatzmcr's road Station. Frame transportation house, 16 feet by 12 feet, with platforms, 100 00 Newtown Station. Frame transportation house, 64 feet by 14 feet, with platforms, 300 00 Water tank, 150 00 Centrevillc Station. . Frame transportation house, 30 feet by 12 feet,. 75 00 Frame transportation house,'52 feet by 14 feet, with platforms, - oqq oo 42 Mghtstown Station. Frame passenger office, 22 feet by 16 feet, divided into two apartments. Frame transportation house, 52 feet by 13 feet. Frame transportation house, 28 feet by 18 feet, with platforms. Water tank, built of stone and brick, Turnround, 40 feet diameter, Oranherry Station. Frame passenger office, 22 feet by 16 feet, divided into two apartments, with platforms. Frame transportation house, 40 feet by 12 feet, with platforms, Prospect Plains Station. Frame transportation house, 46J feet by 12J^feet, with platforms, West's, or Jameshurg Station. Frame dwelling house, 16 feet by 30 feet, occupied by attendant to tanks, passengers, switches, &c.. Frame transportation house, 55 feet by 18 feet, with platforms. Reservoir of brick, 38 feet diameter and 9 feet in depth. Water tank, of wood, Spotswood Station. Frame transportation house, 36 feet by 16J feet, with platforms. Water tank, of wood. South Amboy Depot at Wharf. Frame car house, 140 feet in length and 62J feet in width, with three railroad tracks, turnround in the house of 36 feet diameter, with platforms and gang¬ ways to steamboats. Brick car house for extra cars, 183 feet long and 45 feet wide, 15 feet walls, board roof, containing four tracks;, continuation of brick car house, 156 feet in length and 49 feet in width, 15 feet walls, slate roof, and four tracks, 8500 00 150 00 75 00' 400 00 500 00 500 00 200 00 100 00 350 00 300 00 1.500 00 150 00 100 00 125 00 3.500 00 5,209 00 43 Frame transportation house, 110 feet long and 56 feet wide, three railroad tracks, platforms, &c.. Frame transportation house,'200 feet in length and 75 feet in width, post 15 feet, four tracks, two plat¬ forms, 15 feet wide each, the whole length of the building, Frame transportation office, 28 feet by 20 feet. Frame building, 20 feet by 15 feet, for repairs of cars, &c., Passenger office, two stories high, 40 feet by 20 feet, with three rooms, Frame shed, or covered way, from end of buildings to face of the wharf, 210 feet long and 35 feet wide, with platforms and slips. South Amboy Upper Depot. 360 acres of land; Tavern house, brick, three stories high, 82 feet in length by 34 feet in width; Barn for tavern, 41 feet by 28 feet; Shed or cow house, 49 feet by 19 feet; Corn crib, 21 feet by 6 feet, Brick engine house, 108 feet by 37 feet. Brick blacksmith shop, 75 feet by 26 feet. Frame carpenter shop, two stories high, 63 feet long and 28 feet wide. Frame carpenter shop, 60 feet by 20 feet, part used as coal shod. Frame carpenter shop, 60 feet by 20 feet, one track. Wood shed, 108 feet long and 30 feet wide, Four double dwelling houses for workmen, three sto¬ ries high, 36 feet in length and 16 feet in width, with kitchen, 16 feet by 12 feet, one and a half sto¬ ries high, and cellar under whole house. Five double dwelling houses for workmen, two sto¬ ries high, 36 feet long and 16 feet wide, with kitchen on end, 16 feet by 12 feet, one and a half stories high, and kitchen behind, 22 feet by 11 feet. Three double frame dwellings for workmen, two sto¬ ries high, 36 feet by 16 feet. One frame house for workmen, 45 feet by 24 feet, with cellar; this building comprises three residences. S2,000 00 4,000 00 200 00 100 00 1,200 00 800 00 43,000 00 2,600 00 1,150 00 1,200 00 900 00 925 00 250 00 2,500 00 3;i25 00 1,800 00 950 00 44 One frame house for workmen, 45 feet by 24 feet; this building comprises three residences, $800 00 One dwelling house, occupied by transportation agents, 650 00 One double dwelling house for workmen, 38 by 24 ft., 700 00 Eight shanty houses for workmen, each 20 by 12 feet, 960 00 Five shanty houses for workmen, each 18 by 10 feet, 500 00 One shanty house for workmen, 16 feet by 10 feet, 100 00 One frame house for a store, 600 00 One market house, two stories high, 28 feet by 12 feet, in the upper part of which is an office, 14 feet by 12 feet, for the use of the superintendent of shops, 500 00 Slaughter house, 20 feet by 16, feet, 50 00 Frame school house, 22 feet by 20 feet, 250 00 One ice house, for use of steamboats, 15 feet by 25 feet, 200 00 One ice house, for use of steam boats, 16 feet by 13 feet, 100 00 . Frame stable, 16 feet by 16 feet, 70 00 Large brick water tank, 500 00 Wharves, stone wall, Ifc. 500 feet in length of stone wall, varying from ten feet to three feet in height, and averaging five feet in thickness; this is built on the lower side of the land¬ ing depot, as a protection from the bay; 320 feet of wharf, in continuation of the stone wall to the face of the wharf, for the same purpose; 350 feet in length of wharf on the front of landing; 1000 feet of wharfing, running from the face of the wharf back to the shore, 32,800 00 imANCH RAU.ROAD FROM RORDENTOWN TO N. BRUNSWICK. Trenton Station. Frame station house, 113 feet in length and 35 feet in width, containing a capacious passenger office, also a shed attached, 176 feet long and 20 feet wide. Brick toansportation house, 320 feet long and 45 feet wide, with slate roof, with three tracks, and plat¬ forms, together with an office. Brick engine house, 81 feet long and 28 feet wide, with two tracks, Turnraund, 40 feet diameter. 3,266 00 7,072 00 1,800 00 500 00 45 Six-mile Turiimd. Frame dwelling house, 16 f^et by 14 feet, with a shed, built for a man to attend the switclies, S400 00 Eight-mile Turnout. Frame dwelling house, 16 feet by 14 feet, with a shed, built for a man to attend switches, 400 00 Princeton Station. Frame passenger office, 34 feet by 16 feet, with plat¬ forms ; Frame engine and car house, 75 feet by 24 feet, with ■ one trade, and turnround 16 feet diameter, 2,317 00 Two tanks for engines, with frames, 250 00 ' Kingston Station. Frame dwelling house with passenger office, 30 feet by 15 feet, with kitchen, 23 feet by 16 feet, and platforms, 650 00 Bean’s Pond Station. Frame dwelling house, 38 feet long and 16 feet wide, part of which is a passenger office, the remainder for a man to reside to attend the switches, 480 00 Water tank near junction of road with the New Jer¬ sey railroad, 150 00 New Brunswick. Ili ick engine house, 43 feot long and 28 feet wide, two tracks, and turnrounds 32 foot in diameter, 1435 00 Wood shed, 56 feet long and 22 feet wide, 150 00 8341,422 00 In relation to the prices carried out for the cost of the foregoing items of property, it should be observed, that they are, in most instances, considerably below the true amount, being made up, in each case, from specified charges in the hooks, for materials and special contracts, known to refer exclusively to the items in ques¬ tion ; and not including a large amount of labour and materials furnished by the company, and paid for in connection with other things, or with the general expenditures, A more careful analysis 46 of the expenditures of the company will necessarily have to be made, in order to arrive at a faithful exhibition of the true cost of the works and property here enumerated. This will require a great amount of time and care. In the mean time, it is hoped that the above statement will meet the desire of the commissioners to have such an exhibit made, as the time limited for the purpose and ex¬ isting circumstances will permit, with a view to afford an approxi¬ mate idea of the true cost. It is the purpose of the company, as soon as can be conveniently done, to have their books and papers carefully examined by such of their officers and clerks as are best acquainted with the subject, for the purpose of analyzing and se¬ parating the expenditures which are properly applicable to the cost and construction of their property, as distinguished from the work of repairs. All of which is ihost respectfully submitted. WM. COOK, Engineer. Bordentown, Saturday, January 2G, 1850. William Cook, whoso name is attached to the within report and statement, who was previously sworn before us as a witness, being recalled, on his further examination saith, that the same is true and correct, according to the best of his knowledge and belief. WM. COOK. Sworn and subscribed, January 26, 18-50, before the commis¬ sioners. Aaron Robertson, Ch’n. REPORT op assistant SUPERINTENDENT OF RAILROAD. The following, is believed to be a correct statement of the num¬ ber, kind, and condition of the cars, locomotive engines, and ap¬ purtenances, and of the tools and machinery in the shops of the company, together with an estimate of value on the first day of January, 1850. First class passenger cars. 5, with 8 wheels each, much worn, value $1000, $5,000 00 9, “ “ “ “ in very good condition, $1200, 10,800 00 47 2, with 8 wheels each, recently rebuilt, $1800, $3,600 00 2, “ 12 “ “ $1500, 3,000 00 11, “ 12 “ “ nearly new, $1800, 19,800 00 6, “ “ “ “ “ “ $1300, 13,800 00 2, “ “ “ “ two-thirds completed, $1650, 3,300 00 37 first class passenger cars, valued at $59,300 00 Second class, or emigrant passenger cars. 4, with 6 wheels, very much worn, $250, $1,000 00 10, “ 12 “ in very good order, $1200, 12,000 00 .■ 8 “ “ “ “ “ SIOOO, ■ 1,000 00 ■I “ “ “ altered from first class cars, $600, 1,200 00 16 second class passenger cars, total value, $15,200 00 Merchandise cars. 61, with 4 wheels, box cars, $150, 89,150 00 ■12, “ “ fiat “ 150, 6,300 00 11, “ 6 box “ 200, 2,200 00 10, “ “ “ “ 300, 3,000 00 11, “ “ flat “ 250, 2,750 00 72, “ 8 “ “ 450, 32,400 00 13, “ 12 “ “ 550, 7,150 00 51, “ 8 box “ 500, 27,000 00 3, “ “ altered from passenger cars, $200, 600 00 342 merchandise crates, $30, 10,260 00 16 passenger line baggage crates, 880, 1,280 00 2 iron express crates, $140, 280 00 277 freight cars, and 360 crates, valued at, 3102,370 00 9 snow ploughs, $150, $1,350 00 29 shafts, with 30 in. chilled wheels, for repairs, $41, 1,189 00 26 hollow shafts, with 38 in. chilled wheels, wrought 21 shafts, with 36 in. wheels on, for repairs, $30, 630 00 18 new wheels, with wrought iron tire on, $37, 666 00 65 second hand 36 in. wheels, $9, 585 00 14 second hand 33 “ “ 8, 112 00 20 second hand 30 “ “ 8, 160 00 122 new 30 in. chilled, handed and bored, $16, 1,952 00 8 “ 33 “ “ “ “ “ 128 00 24 dirt cars for road repairs, $90, 2,160 00 $1,176 00 49 There are two new extra tenders for locomotives, nearly complete, 8800, ' 51.600 00 6 driving wheels, extra, for. locomotive, complete, 792 00 6 front wheels, 4 by 6, with tire on, complete, 510 00 2 forward shafts of wrought iron, 70 00 7 wrought iron cranlt axles, 1,918 00 1 bronze metal, finished for use, 400 00 3 cast iron crank shafts, 318 00 18 wrought tires, 5 ft. diameter, 1,427 00 5 “ “ 5 ft. 9 in. “ 719 00 12 “ “ 4 ft. 6 in. “ 973 00 6 pilot shafts, with wheels on, complete, 324 00 8 pilot wheels, bored and banded, 144 00 Extra for repairs of locomotives, 89,195 00 - Less for two extra tenders, nearly complete, 1,600 00 87,595 00 MacMnery and tools in shops at Bordcntoiai. 1 planing machine and tools, 890 00 1 morticing machine “ “ 50 00 1 “ “ “ “ 10 00 1 boring machine “ “ 30 00 1 whip-saw macliine, 75 00 1 large circular saw, tender, and fixtures, 100 00 2 small “ “ with fixtures, 200 00 1 small turning lathe and tools, 100 00 19 work benches, 171 00 2 iron vices and fixtures, 36 00 70 feet shafting, 2| inches diameter, 2-32 00 18 “ “ 3 “ “ 65 00 9 pulleys, -15 00 2 work benches in painter’s shop, 32 00 , Blacksmith shop. 10 fires, tools for each, 875, $750.00 Tools for three fires, 8150, 450.00 Small — hammer and fixtures, 250.00 Blower and fixtures, 150.00 so Large punching and shearing machine, $600,00 Horizontal drill, 30.00 75 feet shafting, 3 in., 15 ft. in., and 4 iron pulleys, 75.00 - $2,305 00 Boiler makers shop. 1 large lever punch, $50.00 1 small “ “ 50.00 2 pair binding rolls, 900.00 I lever shears, 250.00 Hammers, chisels, &c., 120.00 Tools in coppersmith shop, 100.00 Locomotive repair shop. II vices and tools, $50, $550.00 Hoisting machine and fi.\lures, 300.00 1 small lathe and wheels, 75.00 Taps, dies, wrenches, &c., 150.00 In machine shop, lower floor. ■ 1 large lathe for turning locomotive wheels, $1000.00 1 lathe and boring mill, 300.00 1 slide lathe and tools, 450.00 1 lathe and tools, 300.00 1 machine for cutting key seats, 130.00 1 planing machine and tools, 700.00 2 drilling machines and tools, 400.00 7 vices with tools, $25, 175.00 Grindstone and stove, . 20.00 3 feet shafts 3^, 50 ft., 3 in., and 16 pulleys, ' 250.00 Machine shop, second floor. 1 lathe and tools, $450.00 2 lathes and tools, $400, 800.00 1 small lathe and tools, 200.00 1 planing machine, * 350.00 1 machine for boring brass, 100.00 1 machine for dressing nuts, 150.00 1 screw cutting machine, 300.00 2 drilling machines, 300.00 1 screw cutting machine, 250.00 1,470 00 3,725 00 51 12 vices and tools, $30, $360.00 Taps, dies, &c., in the room, 700,00 Grindstones and stoves, 20.00 80 feet of shafting 2| diameter, and io pulleys, 304.00 - 84,284 00 Maclihie shop, third floor. 1 lathe, $300.00 1 small lathe, 100.00 5 benches $5, $25, stove and pipe, $10, 35.00 One large double stationary engine and boiler for driving machinery of shops. $20,850 00 1 horse power machine, $75.00 1 stationary engine and boiler, 450.00 - 525 00 821,375 00 Sioch and tools at South Amboy. 2 forges and tools in smith shop, $236.00 2 old anvils $20, 5 vices $40, jack screws $48, 108.00 2 sets blocks and fall $30, 30 trustee $150, 180.00 38 barrows $150,1 pr. mules and harness $200, 350.00 Materials. Paints, glass, &c. $40, 1200 lbs. bar iron $48, $88.00 5000 ft. b. m. lumber for cars $30 per m., 150.00 5 tons scrap iron mixture, wrought and cast, 110.00 Hough estimate of the quantities and value of materials m hand at shops of company. 146,500 feet ash plank, $20 per m., $2,930.00 11,500 “ yel. pine, 30 “ 345.00 1,000 “ maple, 40 “ 40.00 5,000 “ cherry, 25 " 125.00 8,000 “ oak, 25 “ 200.00- 24,200 " pine, 16 “ 387.00 53 17,000 feet pine, $16 “ $272.00 8,900 “ w.wood, 25 “ 222.50 19,500 “ w. pine, 16 “ 312.00 126,100 lbs. new bar iron, 4 cents, 5,044.00 30,000 “ boiler iron, 5 cents, 1,500.00 5,000 “ cast steel, 14 cents. 700.00 6,O0O “ spring, 8 cents, 480.00 1,400 “ block tin and zinc. 420.00 6,480 “ copper locomotive tubes, 20 cts, 1,296.00 1,355 “ sheet copper, 22 cents. 298.10 4,651 “ old copper, 16 cents, 744.16 2,500 “ steel springs, 10 cents. 250.00 2,000 “ wharf bolts, 4J^ cents, 90.00 4 pile driving hammers, 7200,2J cents 1, 180.00 20,000 lbs. (sterling) pig iron, IJ cents, 300.00 290 tons wrought scrap and old railroad iron, $30, 8,700.00 140 tons broken cast iron, $22, 3,080.00 9 “ old tire, $30, 270.00 15 “ scrap spring steel, $30, 450.00 80 “ cast iron railroad chairs, $55 4,400.00 Nails, spikes, screws. See., 200.00 $20,678 26 $33,235 76 13 hand cars for road repairs, 890, $1170 00 Sumumry of estimated value. First class passenger cars. $59,300 Second “ “ “ 15,200 Merchandise cars and crates. 102,370 Extra, shafts, wheels, and trucks for cars, 7,512 Snow ploughs. 1,350 Dirt cars, and extra wheels and shafts for do., 3,336 Locomotives, engines, aiid tenders, 162,800 Extra shafts, wheels, and tires for engines, 7,595 Machinery and tools in shops at Bordentowr 21,375 Stock and tools at South Amboy, 1,122 Materials on hand at Bordentown, 33,235 76 Hand cars for road repairs. 1,170 $416,365 76 53 Robert S. Van Rensselaer, assistant superintendent of the Camden and Amboy Railroad and Transportation Company, being duly sworn, says the annexed writing contains a true statement and estimate of the personal property of the said company, of the several kinds therein mentioned, according to the best of his knowledge and belief. R. S. VAN RENSSELAER. Sworn and subscribed before the commissioners, Febraary 7,1850. Aaron Robertson, CKn. REPORT or ENGINEER OP CANAL. An account of the Delaware and Raritan Canal and Feeder, and their appendages. The property of the Delaware and Raritan Canal Company consists principally of two canals, known as the “ main canal” and the "feeder,” the latter intersecting the former at the city of Tren- The main canal extends forty-three miles in length, from the Delaware river, at Bordentown, in a generally northeast direction, to the Raritan river, at New Brunswick. It forms, with the tide waters with which it unites at each end, a communication of about one hundred and ten miles in length, between the cities of New York and Philadelphia; and it thus, also, forms a link in the chain of inland navigation between the eastern and southern states of the Union, It is seventy-five feet wide at the surface of the water, and full seven feet deep. The banks were made two feet higher than the water, ten feet wide on the top, with slopes of two feet base to one foot rise. This canal was built with fourteen locks— seven west of the summit, overcoming an elevation of fifty-seven feet; and seven east of the summit, overcoming an elevation of fifty-eight feet. These locks are twenty-four feet wide, with a space of one hundred and ten feet between the gates, from point 54 to point, and a total length of one hundred and sixty-five feet. The lock walls have cut faces,' and are laid, like the other masonry on the canal and feeder, with hydraulic cement. Boats of the largest class are in extensive use, commonly carrying about one hun¬ dred and ninety, to two hundred tons. The canal is supplied with water, through the feeder, from the Delaware, except the level of five miles in length next New Brunswick, which is supplied from the Raritan. The feeder commences at Bull’s island, and runs twenty-two and a half miles, in a southeasterly direction, down the valley of the Delaware, to the summit level of the main canal at Trenton. For the greater part of this distance the water is sixty feet wide at the surface, and six feet deep. The hanks are commonly of the same height, width, and slope as those of the main canal. The feeder was built with one lock, of ten and a half feet lift, and two guard locks, without any lift. Besides its use as a feeder, it fortris part of the channel through which the coal from the Lehigh and Wyoming valleys is carried to the city of New York. In order to show particularly the condition of these tvorks, it is necessary to describe them more in detail. The entrance from the Delaware into the main canal is at the mouth of Crosswicks creek, about thirty miles above Philadelphia. The tides of this creek always keep open a clear and deep passage to the central channel of the river, the navigation of which is good below this point. The creek and the wharves and basins erected by the company afford an ample and safe harbour for a large fleet of vessels. From this point the canal runs, oyer the lowlands along the margin of the river, four miles in a north northwesterly direction to Lamberton; then rises, and runs upon a table land, two miles north to Trenton, crossing the Assanpink creek by a culvert, having an arch of thirty-six feet span. At Trenton, the summit level begins, and extends nearly fourteen miles northeast to Kings¬ ton: running first five miles up the valley of the Assanpink; then three miles through a moderately deep cut in Lawrence meadows, a depression in the ridge that divides the waters flowing east and west; then down the valleys of the Stonybrook and Millstone river, leaving Princeton one mile to the north, and crossing the Millstone by an aqueduct having one hundred feet in width of water way. From Kingston, the canal runs down the valleys of the Millstone and Raritan rivers, in a north northeasterly direction sixteen miles. 55 to Boundbrook; then turning soutbeast, it runs seven miles farther to New Brunswick. In front of this city, a pier sixteen feet wide encloses a part of the hed of the river, retaining the water at the height of high tide, and forming a hasin from one to three hundred feet wide, and nearly a mile long. The outlet lock, at the lower end of the city and of this hasin, is thirty feet wide, and one hundred and thirty feet long between the gates. The New Brunswick branch of the Camden and Amboy railroad runs upon the southeastern bank of the canal, nineteen miles from Bordentown, nearly to Kingston. The soil on which, and with which the canal is constructed, is for the most part loam; in a few places gravel or clay is met with. For a short distance the soil is a deep marsh, composed of vegeta- . hie matter. Along the valley of the Assanpink there are several cuts through a hard gneiss rock. Along the Stonyhrook, Millstone, and Raritan, the canal follows the foot of the sandstone and red- shale highlands, that form the southeastern boundaries of the val¬ leys of those streams. Part of the prism of the canal is commonly cut in those rocks; they afford an excellent foundation for the me¬ chanical structures. The fragments of rock excavated were used to make a solid covering to the banks, especially on the outside, and of course add greatly to their stability. The loamy soil, confined by such a covering, where the fragments are carefully excluded from the interior,* makes a remarkably tight and safe bank. For a part of the distance, however, the redshale will not resist the action of the water and the frost, and where exposed requires to be covered with wall made of stone from a distance. Where the banks of the canal are liable to abrasion by the neigh¬ bouring streams, they are protected by slope walls; eight of the ten miles next New Brunswick are so protected. The slope walls, on both the canal and feeder, have never failed to give complete pro¬ tection to the banks, of which they form the surface, however vio¬ lently the'floods or ice may have borne against them. To protect the banks from the abrasion of the water of the canal itself (where not already sufficiently protected by a rock facing), ■stone walls have been recently built along the water line of the ' When such fragments found their way into tlie interior of tile bank, and caused leaks, they were, after the opening of the canal, carefully replaced by water tight soil. 56 canal,- commonly about three feet in height, and altogether thirty- five miles in length. A guard bank, three miles long and about seven feet high, pro¬ tects the part of the canal next Bordentown from damage by the floods of the Delaware. Another guard bank, four miles long, ave¬ raging some ten feet high, protects the summit level from overflow by Stonybrook, At five different places, east of the summit level, the bank of the canal, on the side next the Millstone and Raritan rivers, is raised three or four feet above the usual height, for an average distance of a mile at each place, to protect the canal from overflow by those streams. Five miles above New Brunswick the water of the Raritan is raised to the proper height to flow into the canal, by a dam across the rocky bed of the river, eight feet high, flanked by abutments and guard banks, raised above the highest floods. The water that accumulates in the canal, from the drainage of the adjacent fields after heavy rains, is discharged by sixteen waste- wiers, having a collected length of more than three thousand feet, and by five sets of wastegates. There are twenty-three road bridges and four fann bridges over the canal, all turning on pivots, to allow masted vessels to pass. There are twenty houses to accommodate the persons who attend the bridges, and fourteen houses to accommodate the lock tenders. Fifteen basins, mostly owned by individuals, open into the canal at different points. The company have six store houses and buildings for offices. Twenty-one streams (not including the Assanpink and Millstone) are crossed by culverts, varying from four to thirty-six feet in width of water way. The ground at the western terminus of the canal is a deep marsh. The original outlet lock, built in this marsh, contains the only ma¬ sonry connected with the whole canal or feeder which has not a foundation of unquestionable solidity. , To provide against the re¬ motest danger of interruption of the navigation, and to meet the wants of the increasing trade, by providing more ample harbour room for the great number of vessels arriving simultaneously at high water, and means of quicker entrance into the canal than had been originally provided, an additional communication with the Delaware was made during the seasons of 1847 and 1848, includ¬ ing a lock, hasin, and wharves. The old lock was secured with 57 great care five years ago, since which time it has not given any in¬ dications of failure. The feeder communicate^ with, the Delaware at the head of Bull’s island, in a deep natural pool, part of which is widely known as “Black’s eddy.” It then occupies the natural channel, between Bull’s island and the Jersey mainland, for three-fourths of a mile. 'The current is here regulated by a guard bank across this channel, with a guard lock, flood gates, &c.; and a safe and capacious har- hour is thus formed for boats and rafts. From this point to Prallsville, some three miles, the feeder fol¬ lows the immediate margin of the river. At Prallsville is another guard lock. From this point to the junction with the main canal at Trenton, a distance of nearly nineteen miles, it runs upon the low¬ lands, or along the foot of the hills that bound the valley of the Delaware on the northeast. A great portion of the feeder is excavated partly in the sand¬ stone and indurated redshale rocks which form the hills just men¬ tioned. The fragments of these rocks were used to cover the sides of the banks, either loose or laid into walls, and keep the loam, which forms the water tight interior, in its place. Where the feeder approaches the river, it is protected against the floods by heavy- slope walls. Between Prallsville and Bull’s island the banks, being so constructed as to be overflowed during freshets, are strongly- protected by walls on both sides. About eight miles in length of feeder is walled. Below Prallsville is a guard bank, a mile and a half.long, between the feeder and the river, some ten feet higher than the water of the former. The feeder has a descent toward Trenton of two inches to the ’The original intention to form a communication between the feeder and the Delaware division of the Pennsylvania canal, and through that with the Lehigh and Wyoming coal fields, wasj owing to causes beyond the control of the company, not effected until since the year 1847. The state of Pennsylvania then authorized the connection to be made at the head of AVells’ falls, fourteen miles from the junction of the feeder and main canal. In the seasons of 1847 and 1848, an outlet, with a lock of eleven feet lift, was made from the feeder into the Delaware, and the river was deepened across to a channel cut into the Pennsylvania canal. The loaded boats enter here, below the lift lock in the feeder, and go with the 58 current to. Trenton, and encounter no further lockage, except the fifty-eight feet beyond Kingston. The Belvidere Delaware railroad, now in progress, will run upon the westerly, or present towpath bank of the feeder, seven¬ teen or eighteen miles." A new towpath, on the opposite side, is in course of construction. There are on the feeder twenty road bridges, twelve farm bridges, and one towpath bridge, all made to turn on pivots; twenty- three houses for lock and bridge tenders: thirteen culverts, having each from six to eighty-four feet width of water way; ten waste- wiers, having a collective length of half a mile, and eight sets of waste or flood gates. Five sets of these flood gates are at or above Prallsville, and are used principally for washing out the sediment that is sometimes deposited during freshets in that part of the feeder. Most of these last have been built recently. They are found to an¬ swer the purpose completely. - The works of the company cover about ten hundred and fifty acres of land. Besides this, the company own lands, damaged or separated from farms, amounting to upwards of four hundred acres. Of this, part contains quanies, gravel pits, and growing timber, which furnish materials constantly required for repairs and con¬ structions; part is occupied by the lock and bridge tenders, and part brings in a small rent. The company own about eight hundred feet front of wharf on the New Bnanswick basin and on the Rari¬ tan below the outlet lock. These wharves have been recently ex¬ tended, to give accommodations to the large fleets that arrive there at high water. Two'mills at Wells’ falls, on the Delaware near Lambertville, damaged and purchased on the construction of the feeder, but not destroyed, still belong to the company, but will be removed to ac¬ commodate the Belvidere Delaware railroad. The water power connected with them still remains, and may become valuable. The large amount of surplus water under the control of the company, above the amount required for purposes of navigation, has been to some extent used for manufacturing purposes. The whole Raritan may be so used at Netv Brunswick. Five mills at Lambertville, and several other mills on the feeder, are supplied with this surplus. The water passing around the locks, especially that in the feeder near Lambertville, may also be used to drive machinery. The company arc well supplied with the necessary apparatus for 59 keeping their works in order. Among these, are a steam dredging machine, with four scows; eight boats used in repairs, &c., seven of which contain boarding accommodations for workmen; cable and other chains, screws, carpenter shops, and tools for two hun¬ dred workmen. Boedentown, January 12, 1S50. To the President and Directors of the Delaware and Raritan Canal Company. Gentlemen, —Pursuant to your instructions, I submit an account of the improvements added and repairs done, within the last ten years, to your works, and my views of their present, as compared with their former condition. The improvements have been made to meet the wants of new and of increasing trade, or to afford additional protection to the original works. They are principally as follows: 1. The connection at Wells’ falls, between the feeder and the Delaware division of the Pennsylvania canal. A short canal was made from the feeder to the Delaware, with a lock of eleven feet lift, built of substantial masonry, and of the same size as the locks of the main canal. A channel across the river was e.xcavated in the rock, where the depth was not already sufficient, connecting with a lock and short canal from the river to the Pennsylvania ca¬ nal. A strong wire rope was stretched over the river, from shore to shore, to which the boats are attached, laid diagonally to the .stream, and carried across by the current. This connection was completed in the summer of. 1848, since which time it has been in full and successful operation. 2. About twenty houses for bridge tenders on the feeder, not ne¬ cessary before the connection at Wells’ falls was made. .9. The new outlet at Bordentown. This consists of a short canal and inland basin, protected by a heavy guard bank, a lock of ten feet lift, and an extension of the wharves at the mouth of Cross- wicks creek, to increase the harbour room. Owing to the unfavour¬ able character of the ground, a lock formed of timber was built in ]ireference to one of masonry, as possessing in this case much greater security. The total length of this lock is 173 feet, the ex¬ treme width 54 feet, and the whole height 22 feet, with a chamber of the usual size. This structure was formed of large timbers, carefully jointed, thoroughly braced, and strongly fastened by dove¬ tailed timbers, bolts, and 30,000 large treenails. It was built upon a neighbouring wharf, launched like a ship, sunk in a pit previously' dredged out, the bottom of which was made accurately smooth and level, and loaded down with two thousand tons weight. The foundations were then carefully secured by extensive and accu¬ rately fitted sheet pilings, and by substituting the best materials, brought from a distance, for the marshy soil immediately around it. This lock has been in operation since the summer of 1848. Though formed of wood, the parts that are not easy to replace are always submerged, and therefore not liable to decay. 4. Extension of wharves on the Raritan below the outlet at New Brunswick, for the convenience of vessels about to enter the canal, or waiting to leave with the tide. 5. New guard banks, additions to the original guard banks, and new protection walls, to guard against the floods of the neighbour¬ ing streams. The necessity for most of these was shown by the great flood of 1841, by far the gieatest ever known in the Dela-' ware. Several years trial of nearly all these means of protection against floods, justifies us, I think, in concluding that no further ad¬ ditions will be necessary. 6. Lining walls to protect the banks from abrasion by the M’ater, in the canal itself. These walls are in most cases about three feet in height, built partly under and partly above the surface of the water. Thirty-five miles in length are completed, and the stone is on the ground for two and a half miles more. For three miles the banks have been protected by plank piling. Most of this work has been done within the last two years. Eight thousand dollars have been expended on it during the year just past. It will be advisable to extend the lining walls, at an expense of five or six thousand dollars a year, for two or three years to come, after which no fur¬ ther lining will probably be required. 7. Means of removing the sands deposited during freshefs in the upper three miles of the feeder. These means consist of five sets of flood gates, at difierent points, having altogether nearly one hun¬ dred feet of opening; and also, in some places, of enlargements of the feeder beyond tbe original dimensions, to obtain a more perfect control of the water for scouring out the sands. These contrivances are completely successful, and save the heavy expense formerly necessary. 8. Excavations below the original bottom of the canal, under and near bridges, to enable persons navigating very large vessels to retain a more perfect control of them than they could otherwise have at those contracted places, and thus save both vessel and bridge from damage. 9. About six hundred feet ip length of new wastewiers, secured by heavy walls. These were found by experience to be necessary to prevent the water, after heavy rains, from rising in the canal to a dangerous height. The repairs made upon your works have been required princi¬ pally from the following causes: 1. Damage by floods. The most serious damage of this kind was caused by the great flood of ISfl; though the damage then was light, compared with that sustained on many other -works. Since the completion of all the present means of protection, the floods have not done much injury. Under this head may be included the deposits of sand at the up¬ per end of the feeder, already mentioned. 2. Dangerous leaks and breaches, caused by the pressui'e of the water in the canal. As on other new canals, situated like this, it was, at an early period, often necessary to excavate longitudinal trenches in the hanks far below the water line, and fill them with water tight materials. No damage coming under this head, or ne¬ cessity for the precautions mentioned, are remembered to have oc¬ curred within the last three or four years. 3. Abrasion of the banks, and movement of the loosened soil from the water line towards, or to the bottom. Every winter the sediment that threatens to interfere with the navigation is carefully removed. A steam dredging machine has been employed in clear¬ ing out the sediment, and commonly excavating below the original bottom. On the whole the present bottom is, near the sides of the canal, higher in most places than the original bottom. This is much more than compensated by the increased height to which the water is raised, it being generally eight inches above the original surface. The lining walls, as already mentioned, will save the hanks, and prevent the deposit on the bottom. 4. The settling of the banks, now nearly or quite ceased, and the increasing height at which the water is kept. Much of the large expense charged to repairs during the last two years was for rais¬ ing the banks above their original height, and of course produced a real improvement. 5. Wear of towpath. This increases as the trade increases. 6. Decay of, and accidents to the woodwork. Since the great increase of trade on the feeder, its bridges have been put in a con¬ dition not before necessary. The other woodwork has been re- newed as decay has taken place, and the woodwork generally is in good order. Drop gates, at the upper ends of the locks, are sub¬ stituted for the horizontal swinging gates, as fast as renewals are requited. Two were put in last winter, and three more are now ready. , These are charged to the repair account, though the ex¬ pense is much greater than that of replacing the gates on the ori¬ ginal plan. There are repairs required, from other causes than those above mentioned, such as .repointing masonry, repairing fences, houses, iron work, &c., but no one class is of large amount. There are other expenses, not properly repairs, but included with them, such as for lines for securing the vessels in the locks, removing acci¬ dental obstructions or sunken vessels, and removing aquatic plants that obstruct the water in the feeder. The old outlet lock at Bordentown, about which some appre¬ hensions were entertained five years ago, and which was then care¬ fully secured, has not since given any indication of failure. No other masonry on the whole canal or feeder has ever given cause to suspect the safety of its foundation. During the past season no pains or expense, when necessary, has been spared to keep the navigation perfect, and prevent even the slightest interruption to the trade. I am decidedly of opinion that the work charged to repairs with¬ in the last ten years is more than sufiicient to cover all deprecia¬ tions, or, in other words, that the improvement of the work ex¬ ceeds in value the amount charged to capital. The substitution of a large class of boats, for the small boats formerly employed in the transportation of the Schuylkill coal, will add very considerably to the capability of the canal. All which is, respectfully submitted. ASHBEL WELCH, Engineer of the Delaware and Raritan canal. AsiinEL Welch, being duly sworn, deposeth and saith, that the foregoing description of the works of the Delaware and Raritan Canal Company, and the statements made in the foregoing report, signed by him, are true, to the best of his knowledge and belief. ASHBEL WELCH. Sworn and subscribed to, before the commissioners, at Borden- lown, on the 31st of January, 1850. A. Worts, One of the commissioners. TESTIMONY. Bokdentown, September 26, 1849. Examination of witnesses before the commissioners appointed, by the legislature of the state of New Jersey, by joint resolution, approved February IZ, 1849, to investigate certain charges made against the directors of the Delaware and Raritan Canal, and Camden and Amboy Railroad and Transportation Companies. The joint companies having laid before tbe commissioners two manuscript books or statements (prepared by request), purporting to contain or show the whole amount of the transportation business upon the canal, in the boats and barges of the Merchants and Swiftsure lines, from the year 1840 to 1848, both inclusive, with the whole amount of tonnage that should have been returned dur¬ ing that period for transit duty; and having also produced certain estimates of the weight of cargo of several trips in each month during that jteriod— The following named persons were produced by tlie companies, as witnesses, to verify the said statements and estimates: J. Gilbert Sweet, being duly sworn, did depose and say—I was engaged in assisting to make an estimate of the cargoes on the manifests of the Merchants and Swiftsure lines, at Princeton basin, a few weeks since; I was engaged from the 26th of June last, to about the tenth of September, inst,, being absent at intervals during that time for about two weeks altogether. I made estimates myself, at the request of the officers of the canal company. I am in the employ, and have been for some time, of J. & N. Briggs, of New York, since the year 1842; part of their business is the agency of the Swiftsure line, between New York and Philadelphia; they are the sole agents of that line in New York; so far as I know, they have been the agents for that line over since I have been with them. I have been receiving clerk, that is, receiving goods to go to Philadelphia, and afterwards discharging clerk of the goods that 6.4 come from Philadelphia to New York; I am at present engaged with them, and have been since May, 1848, as head clerk, having oversight of the rest; we denominate the situation, head book keeper. My situation has been such as to make me familiar with the weight of goods transported; constantly familiar with seeing all kinds of goods handled; almost every kind of merchandise is carried by that line; some goods are carried by weight, some by the piece, and some by the foot. In estimating weight of a cargo from the manifests, I think I have a reasonable degree of certainty at coming near the truth; in taking an ordinary assorted cargo of one hundred tons, I think I can come within five or ten tons, at the outside; in my opinion, 1 could come within eight tons of an average per barge; I think I could come very near the truth; I think I could come nearer the truth, on the average of a large number of cargoes, than on the estimation of a single detached cargo. My examination extended from 1840 to 1848, both inclu.' sive. I can’t tell the proportion examined on the plan of taking twenty trips in a month, it was a third or more. I also examined others before; was engaged in estimating for three weeks before commencing that way; some of the others engaged in the work seemed to depend upon me, when at a loss; the estimation was under my charge in general. The estimation being shown to wit¬ ness, says, those with my initials are made by myself; I made what I deemed a liberal estimate, especially when we took twenty a month, more so than I did previously; those I made before I be¬ lieved at the time to be near the truth; the estimates in the main were about the same as those made at twenty the month; some ar¬ ticles we ascertained we were not precisely correct about, the article of molasses was one thing, and sugar the other; we intended to make it liberal all the time; we estimated molasses at 1000 lbs. per hogshead first, and sugar about the same; afterwards we esti¬ mated molasses 1300 lbs. per hogshead, and sugar at 1200 lbs., that is,when we did not actually know the kind and weight. I have since found the estimate of sugar was very liberal, of course there is a variation; we decided that molasses would weigh 1300 lbs.; some sugars weigh 800 lbs. per hogshead, and, when we knew the kind, we put them down so, others weigh 1100 lbs. to 1300 lbs. per hogshead, and we thought 1200 lbs. a fair average. I ascertained how much a gallon of molasses weighed, and how many gallons a hogshead contained on the average; the weight of the cask was, added in all cases. In estimating the weight of mer- 65 cliandise generally, the package, box, or cask or other enclosure is included in the estimate; in estimating the weight of general mer¬ chandise, not having a known, weight, if tliey were hardware, which we ascertained by the name of the consignee or shipper, we ascer¬ tained the weight by the amount of freight, as we have a certain price for certain descriptions; if they were dry goods, we ascer¬ tained in the same manner, and all other articles not known were ascertained in the same manner; I also, by the amount of freight, make estimates of the Merchants line manifest; I am acquainted with their prices in the main, theirfariff of freights are the same as ours for the same articles; there is no difference in the kind and character of the articles carried by both lines. The Swiftsure line is allowed, in certain cases, to take goods at lower rates than the Merchants line; when that occurred I could tell on the manifests. We intend to take all the freight we can, and rather than let it go in other lines we take it for less. All the esti¬ mates were made in one office, at Princeton; the estimates made by the others pretty nearly agreed with mine; in taking the whole estimates, I think they rather exceeded than fell below the truth. Adjourned to to-morrow morning, at eight o’clock. . Bordentown, September 27, 1849. Examination of J. G. Sweet resumed.—In the year 1848, to which my attention is now called, and which I have been examin¬ ing to some extent, tbe cargoes of corn and other cheap cargoes were carried to a much greater extent than in previous years, and the cargoes were more often entirely of that kind, and they were mostly from Philadelphia to New York, in the Swiftsure line; the manifests I have been examining this morning are chiefly of tliat kind, cheap articles. I was instructed by the company to make the estimates libera), rather above than below. In selecting the manifests to be examined, when examining at the rate of twenty per month, I took the manifests falling on the day fixed on, as near as we could get to the date, unless it had been previously taken on the other plan; we came as near the date as we could without taking them; the days specified were the 1st, 7th, 13th, 19th, and 25th of each month. There has been variation in the rates of freight from the year 1842 to 1848, from year to year, sometimes np and sometimes down; the rates of freight, in the general run, were higher in the former years than in the latter years, except the year 1847. This remark applies to all kinds of merchandise, 66 but more particularly to coarse goods; there was not so much dif¬ ference in general merchandise. We paid regard to this circum¬ stance in making our estimates; we made our estimates according to our recollection of the current rates of the year; I excepted 1847, as our rates in that year were as high as in any previous; we had more business in that year, by a considerable proportion, than in any other year; this I know to my personal knowledge for the seven years I had been there, and I know it from the books for the two previous years; the rates of freight in 1848, on common goods, were generally lower than in previous years. The rates of freight from New York to Philadelphia are gene¬ rally higher than from Philadelphia to New York; the Swiftsure and Merchants lines have the same tariff of freights, but if any arti¬ cles are to be taken at lower rates, in consequence of opposition, the Swiftsure is the line designated to doit; in the Swiftsure line Messrs. J. & N. Briggs and witness are the persons to make a de¬ duction in,freight, if any is to be made. The Merchants and Swift¬ sure lines used the same barges formerly, of late years the steam propellers are appropriated to the Merchants line; the names are, the Vulcan, Anthracite, Ironsides, and Black Diamond; and if the merchants line wants a barge, they take it indiscriminately. If the Swiftsure line is out of boats, we are authorized to charter others. The aggregate number of boats belonging to both lines is twenty- four. We do not send off our boats at regular stated periods, some¬ times once a day. sometimes every other day, sometimes full and sometimes not half full; if we have plenty of boats, and they want them in Philadelphia, we send them off pretty fast, and if we are .scarce of boats we keep them loading two days, our rule is not to keep them longer. The shortest trip of a barge from New York to Philadelphia is eight days; they have been as long as from two to three weeks making a trip, the average, I should think, would be as much as fifteen days at least, that is, excluding the steam¬ ers; nay understanding is, that the Merchants line sends a boat every other day, and as much oftener as they can. The manifests are intended to show the whole amount of cargo sent. As far as my knowledge extends, since I have been book keeper, every thing has been truly entered on the books here produced as the books of the Swiftsure company. At the beginning of 1848 we did not make an estimate of tonnage, to send to the collector at Princeton; previous to 1848, it was not the practice of J'. & N. Briggs to send any estimate to the collector, but merely a toll list of the articles, 67 RD many articles, such as hogsheads, barrels, chests of tea, &c.; the practice of giving an estimate of the tonnage was not until the middle of 1S48; since that time we have endeavoured, by all tbe means in our power, to send the actual tonnage with the vessel to the collector, ahd it appears on the manifest; when we send a barge from our office, we send with that barge a slip of paper headed toll list of Swiftsure barge, from New York to Philadel¬ phia, with the date, which sheet of paper contains an enumeration of the principal articles of the cargo, at the bottom of ivhich we put down an estimate of the cargo in the whole; we call it all su¬ perior cargo, a very small proportion is called inferior; we do, not discriminate between superior and inferior in the cargo, I mean superior and inferior with reference to transit duty, as distinguished by the charter of the canal company. It is my duty to prepare the toll list; it is prepared for the benefit of the collector, and the captains of tlie barges are requested to deliver it to him. I also prepare the manifests, and send them by mail to our agents in Philadelphia, Wm. M. Baird & Co.; they are intended to arrive there before the boats; tliere is no estimate of tonnage on the man¬ ifests, we keep the original and send a copy; this is the practice of the office at this time. Tlie names of the persons who assisted in making the estimates, are Samuel Thompson, myself, Abiel Abbot, A. Heckman, and Wm. H. Loper; they were the ones who made the estimates. The plan of taking twenty a month, was because we thought it fairer, making it an arbitrary rule, and one to which no exceptions could be taken. The baige Whale is registered one hundred and ten tons, but she will not carry more than eighty or ninety tons of such merchandise as we transport from Now York to Philadelphia; from Philadelphia to New York, she would carry eight or ten tons more, on account of the different kind of mer¬ chandise carried; the other barges will range in about the same proportion. In transporting iron, they would carry more than their registered tonnage.' The barge Planet is one hundred and thirty tons register, and would carry one hundred and sixty tons of iron safely, or other very heavy articles that would give her whole bur¬ then of weight. The salt carried is coarse, and in the bulk and weight about seventy pounds per bushel; there is scarcely a vessel that leaves our office that is fully loaded; about one half of the vessels arriving from Philadelphia are fully loaded. We did not establish any arbitrary rule as to which date we would take, whether the preceding or the following day to the arbitrary day; if no trip happened on that day, it would be altogether accidental which of the two would be taken. , I should think the boats would not average as many tons in weight in 1848 as they did in 1840; they are not kept as long to load, and as they are not kept as long, they are not stowed with as much.care. The collector at Princeton never disputed, as I heard, of the tonnage we sent him. The agent for the Merchants line, in New York, is William H. Thomson, and in Philadelphia William M. Baird & Co.; the proprietors of both lines are the same indi¬ viduals. We have nothing to do with the Merchants line. Samuel Thompson is now one of the firm of Wm. M. Baird & Co.; Abiel Abbot was formerly a clerk of Merchants line, in New York, but is not now connected with either line. A. Heckman was formerly in the office of Wm. M. Baird & Co., in Philadelphia, as I under¬ stand. William H. Loper is one of the firm of Wm. M. Baird & , Co. I have understood that tho New Brunswick Steamboat and Canal Transportation Company are the proprietors of tho Mer¬ chants and Swiftsure lines. J. GILBERT SWEET. Sworn and subscribed, the aVth day of September, 1849, before the conlmissioners. A.taoN Robertson, Ch'n. Ahiel Allot, being duly sworn, deposeth and saith—I am not connected with the Merchants and Swiftsure lines; it is about two years since my connection with the Merchants line ceased; prior to that time I was book keeper and general manager of the freight business. I was oonnected for nine years previous to that time; I was in the office of Thomson & Neilson, New York, William H. Thomson and John G. Neilson; they were the agents of the line in New York; for the last two years I have had no connection with either the Merchants or Swiftsure lines. My duty, as principal clerk, was daily to make up the way bills, the amount of freight, &c., of merchandise, to estimate the weight and the price charged to shippers for the transportation of merchandise. This brought me in personal contact with the goods, for the purpose of ascertaining the weight of'goods, &c.; this was my department for the whole nine years. I assisted in estimating the weight of cargoes at Princeton a few weeks since, at the request of W. H. Thomson, of New York, at the instance of John R. Thomson, as he informed me, Mr. Sweet, of the Swiftsure line, New York, Samuel Thompson, 69 of Philailelphia, from the Merchants and Svviftsure line office, and Wm. H. Loper, of the sanae office. We examined from 1S39, 40, to 48; my instructions were to make an estimate of the tonnage of particular manifests or way bills, selected as near as possible to the truth, having reference to my knowledge of the shippers and the kind of goods shipped. There being particular kinds of goods we always knew the weight of, such as barrels of flour, sugar, &c., if the weight of the article was not known, or did not appear on the manifest, the weight was ascertained by reference to the shipper or consignee, that is, in reference to the kind of goods dealt in by the shipper or consignee; when the weight of the article appeared in the manifest it was put down at the same. When goods were charged by the foot, our rule was to allow on dry goods; where 5 cents per foot was charged, we allowed twenty to twenty — cents per 100 lbs.; when 6 cents per foot was charged, from 26 to 28 cents per 100 lbs., and 8 cents per foot, 32 cents per 100 lbs.; wo have ascertained this by actual weight and measurement in former years. While I was connected with the Merchants line, the roost of my estimates were eastward, both the Merchants and Swiftsure line.s. My own part of the work was five each month; I took tlie first of the month, or nearest to it, the Sth, or nearest, if not the Sth, usually the 7th, the 12ih, the 21st, or 22d, and 27th, or the one nearest the end of the month. Mr. Heckman, of Philadelphia, also assisted in making the estimates at Princeton; our instructions were to make our estimates as correct as possible from actual weights and measures; that when there was no weights or measures put down, and where there was any uncertainty in the weight of goods, knowing neither shipper or consignee, we made our estimate from our lowest rate of freight, which is twelve and a lialf cents per 100 lbs., for instance, a box or cask was put down at a dollar, we called it 800 lbs. All my estimates were made in pursuance of instruc¬ tions, and conformably to them. I adhered to the rule, as far as possible, in selecting the manifest to be estimated, and do not re¬ collect deviating from it in a single instance; all my estimates are marked with initials A. A. I commenced about the 14th of August, the work had been partly done before I commenced, I continued till the 6th of September; the estimates were made correctly and lionestly, to the best of my judgment, having no interest directly or indirectly. 1 left the office ofW. H. Thomson on or about the 16th of April, 1847. In 1848 I was engaged, as freight agent in New York, for D. Leech & Co., of Philadelphia, sending out freight to 70 Pittsbuvgli, in part through the Delaware and Raritan canal, and part by the Camden and Amboy Railroad Company; as far as my estimates go, I think they are fully up to the amount of tonnage; I think they are all high. Friday, September 28th.—I do not know who prepared the state¬ ment or memorandum of rates which was used to estimate by; in all cases of doubt we were regulated by it; sometimes we estimated by our own opinions, independent of the statement; the statements were merely to assist in estimating; the statement was full and comprehensive, embracing the variety of goods transported by both lines; the weights in the list corresponded with my opinion and recollection of the weight of different articles. The manifests of cargoes were first entered in a hook from memoranda fur¬ nished me by the receiving clerk; these memoranda contained the weight of all articles that we were in the habit of taking by weight;, this, however, needs some qualification, as, for instance, we would be receiving large lots of iron, cheese, &c;, the lots would be in¬ complete for one boat, it took frequently two or three boats; in such cases we would make an estimate, as near as possible, of what had been sent by each barge, entering the same on the seve¬ ral manifests.' On the completion of the lot, the actual weight, whether over or under, was put upon the last manifest; a copy of this manifest was forwarded to the agent in Philadelphia, for the purpose of collecting the freight of the consignees and for the pur¬ pose of delivery of the cargo; the manifest was usually forwarded the next morning after the boat sailed. We usually sent what we called a toll list by the captain, to be delivered to the collector at Princeton, I mean always; this toll list contained every article, or the amount of the freight on board of the boat; this toll list was made from the same memoranda from which the manifest was made; it did not specify every article, but merely an enumeration of the different kinds of articles; those taken by measurement were put down by the number of feet. The amount of tonnage was not put down, but the toll list contained a general statement of the car¬ go, as before mentioned, for the purpose of enabling the collector at Princeton to ascertain the tonnage. When I first entered the office, my orders were to furnish each captain with a toll list, as before mentioned, and that that toll list should contain every article on board of the boat; I understood this was also the rule in all the offices; to the best of my knowledge the manifest contained a list of all the articles carried by the boat each trip; sometimes some 71 articles included in the manifest would be left, and sent by the next boat, and a memoranda of the fact was made on the manifest in which they were entered. Our regular rule in the Merchants line was to send a boat every other day, or three boats a week; that rule continued the whole time I was there; in dull times we only sent two boats a week, it depended upon business; frequently re¬ quired to send boats empty, at particular seasons. I think the rule of the Swiftsure line was the same as ours respecting the sending of boats; 1 think the tariff of rates of freight in the Merchants line was lower in 184S than iii 1840 to ’43; I think the reduction of rates was from 15 to 20 per cent, on many articles; but not as a general thing. My orders with regard to tlie toll lists came from the beads of the concern, Wm. H. Thomson and John Gr. Neilson, the agents in New York, also afterwards from Edwin A. Stevens; these instructions, in all points, were carried out to the best of my ability. I entered the office of the Merchants line in February, 1838, and continued in it till April, 1847. The collector’s book for 1838 being shown to witness, and his attention called to the toll lists, as they appeared in that book, he says, that the weight of many of the articles tliero entered must have been added by the collector, as only the measurement thereof was contained on the toll list sent from the office in New York; this idea applies generally to dry goods, and boxes and bales of general merchandise, and also to many other articles of the kind of which is mentioned. The collector’s book westward, for the year 1838, appears to contain the substance of the toll lists, as they were furnished for his use during the whole time I was in the office. The average cargoes of the goods shipped by the Merchants line would not equal the registered tonnage; I should think it would fall short all of 20 to 25 per cent, from New York to Philadelphia. The other 1 am not able to say much about; I bad very little to do with the cargoes coming the other way; I should not think over one-third of the barges went full; and when I say full, I don’t refer to the tonnage of the vessel, but to her capacity to stow away par¬ ticular kinds of goods sent. I can’t say what number of boats went empty, I have no idea; they were frequently sent with a very few tons on board; in all such cases we sent a toll list, if she went by herself, and not in company with another boat; it often happened we had a greater quantity of light freight than we wished to put upon one barge (perhaps the weather would be rough); having re¬ ceived an order for a light boat from Philadelphia, wo frequently 72 put a few tons on board that boat, to relieve the other; in all such cases the full amount of freight was charged in one toll list; we had none of those toll lists before us in making the estimates at Princeton. In making my estimates at Princeton, I adopted the same rule throughout, as to measurement; 1 was acquainted with the freights to the time I left in 1847, and based my estimates on my knowledge of those freights up to that time; in 1847 I do not know what the toll lists were; I adopted the rule that I understood to be laid down in the office at Princeton, as to the dates of the manifests to be se¬ lected ; what the particular days were I do not now precisely recol¬ lect. In speaking of the memorandum of weiglits which I used at Princeton, to assist me in making the estimate, I refer to the one which is now shown me, and also to another which came from the Philadelphia end, which corresponded pretty nearly with this (the list is the same which was referred to by Mr. Sweet yesterday). Sometimes we sent a boat oftener than every other day, an extra boat. The toll lists sent to the collector for his use were of the same character, as to the specificalness, all the time I was in the office. In selecting the manifests to be examined at Princeton, I made no preference for any kind of cargo, where there were two dated on the same day or adjoining days. ABIEL ABBOT. Sworn and subscribed, the 28th day of September, 1849, before the commissioners. Aakon Robertson, Ch’n. Bordentown, September 28, 1848. Samuel Thompson, being duly sworn, deposeth and saith—1 was one of the persons who estimated cargoes at Princeton from the manifests. I am situated in Philadelphia with the Merchants and Swiftsure lines, with Wm. M. Baird & Co., am one of that firm; they are the agents of those lines in Philadelphia; have been a member of the firm since the latter part of March or 1st of April, 1847. I have been connected with the Merchants and Swiftsure lines since April, 1839, as book keeper, and representing the com¬ pany, the New Brunswick Steamboat and Canal Transportation Company, I kept the freight books of the whole concern;- this was before I was a partner, and have done the same thing since, and still continue to be an agent of the company. Since I became 73 a member of the firm, before becoming connected tvltb the Mer¬ chants and Stviftsure lines, I was transportation agent on the rail¬ road, at Bordentown in the summer, and at Camden in the winter. In my situation in the Merchants and Swiftsure lines, 1 was in a situation to become familiar with the different kinds of freight. In making estimates at Princeton, I was assisted by others, Mr. Sweet, Mr. Abbot, Mr. Heckman, and Mr. Loper; we consulted one ano¬ ther, but relied particulai'ly on Mr. Sweet. I made my estimates with a great degree of confidence, as to tlioir truth. I inclined to a liberal estimate in all cases. In going over the manifests, I found I was acquainted with a large portion of the shippers, not so many in the New York end as at Philadelphia; was acquainted with the kind of articles they were in the habit of shipping, and the rates of freight at which the lines carried. When I did not Itnow the weight of articles, I relied on other circumstances to get at their weight, such as the amount of freight, the person shipping, the kind of goods, &c. I do not know how many manifests I examined, I think the proportion was small; I was away part of the time; the estimates made by me have my initials,,S. T., marked upon them. AYe took the 1st, 7th, 13th, l-9th, and 25th of. each month, and if the date of the manifest did not agree with those dates, I took those that followed immediately after. I avoided no manifest on account of the character of the cargo. Since I have been in the Philadelphia office, the agents of the Merchants and Swiftsure lines have been C. King & Co., R. P. Loper, Loper & Baird, and AVm. M. Baird & Co.; when I first went there, in IS39, C. King & Co. were agents and part owners of the Merchants line; the Swiftsure was not at that time in existence. AA^hilc C. King & Co. were thus interested in the Merchants line, in the year ISIO or 1841, the Swiftsure line was established, and Henry AA^ilson wa.s the agent under the direction of C. King & Co., who were pait owners of it. The firm of C. King & Co. consisted of Charles King and George J. Pepper, and the New Brunswick Steamboat and Canal Transportation Company were the copartners with C. King & Co. in proprietorship of said lino. The Swiftsure line went from the agency of Henry AA^ilson to the agency of Armor Patton, in the year 1840, I think; Patton was agent one year, I believe; R. F. Loper succeeded him in the year 1841; Loper was agent the same as AYilson & Patton, for one year. In 1842, the agency of the two lines became joined, and R. P. Loper was ap¬ pointed agent. Charles King died about that time, and the firm of 74 C. King & Co. became broken up. Loper was made agent soon after the firm of C. King & Co. ceased; the firm of C. King & Co. retained their interest in the proprietorship of the lines until the firna broke up; I think this was in 1842, may be 1843; afterwards the New Brunswick company bought out their interest, and became sole proprietors of both lines, and have so continued ever since. The interest of King.& Co. was an individual interest, and not as stockholders of the New Brunswick Steamboat and Canal Trans¬ portation Company. When I first commenced, the New Bruns¬ wick company were half owners of the lines, C. King & Co. quar¬ ter owners, and James Schott, jun., in New York, was owner of the other quarter. Before King & Co. failed, which was a few weeks before King’s death, the company bought out the interest of the New York end, belonging to Schott & Co., as I believe. After this purchase I recollect that the interest of the New Brunswick company, at this time, was thirteen-eighteenths, the proportion de¬ pending upon the number of boats furnished by the parties. This arrangement remained until the failure of King & Co., and the purchase of their interest by the New Brunswick steamboat company. Scliott & Co. were interested in both lines, if the Swiftsure was running before they were bought out, and I think it was. R. F. Loper was sole agent till the formation of the firm of Loper & Baird, which was, I thirdc, in the year 1843 or 1844,1 should judge the latter, when Loper & Baird became the agents of both lines, and so continued until the winter of 1846-7, when they were succeeded by Wm. M. Baird & Co. When 1 entered into the firm, so far as respects their interest in the Merchants and Swiftsure lines, the partners of Loper & Baird were Richard F. Loper and William M. Baird; the partners of Wm. M. Baird & Co., so far as relates to the Merchants and Swiftsure lines, are Wil¬ liam M. Baird, William H. Loper, and Samuel Thompson. At the New York end Thomson & Neilson succeeded Schott & Co., as agents of the Merchants line, and J. & N. Briggs, as agents of the ■Swiftsure line. William H. Thomson, I believe, was agent of the Swiftsure line a short time, at the beginning of it, before the Briggs; the Briggs have continued agents at that end of the Swift¬ sure line ever since. Wm. H. Thomson succeeded Thomson & Neilson, as agent of the Merchants line, and remains such at the present time, his partner, John (T. Neilson, having died about the year 1844 or 184-5. When I first went to Philadelphia, I went with 75 C. King & Co., then with E. F. Loper, then Loper & Baird, and then, finally, became a partner in the firm, as hefore mentioned. The estimates made at Piinceton’ are a fair ascertainment of the tonnage of the cargoes, according to the best of my knowledge and belief. The manifests of cargoes are made first in a book, and from thence transferred to the loose manifests, to he forwarded as the boats are loading; they are kept along together. The mani- ifests show the whole amount of cargo carried by each boat; this is the mode of doing business at the Philadelphia office for both lines. Mr. Charles Binney makes up the manifest, and copies it before sent; the manifest is sent sometimes by mail and some¬ times by the conductors on the road; it is forwarded the next morning generally, sometimes the same day. Twenty-four boats belong to both lines, I believe, four of which are steamers, and are used by the Merchants line, the others are mostly used by the Swiftsure line. The number of boats in 1842 was eighteen, when I first commenced there was sixteen. We send a toll list to Prince¬ ton, to the collector, by the boat uniformly; that has been the in¬ structions at our office by the agents, also from the officers of the canal company; they have been the standing instructions ever since I have been there. The toll list sent to the collector at Prince¬ ton contained the leading articles of the cargo, not so full as the manifests; so far as they were put down they were the same as the manifests, viz., the leading and large articles; there was a por¬ tion of the time the articles were not put down, but simply an en¬ try of the amount of merchandise in gross, with the estimated weight of tonnage. 1 cannot recollect when this was, it was some time ago, I should judge it was before I was a partner. When I first went there, to the present time, it w'as a general rule to send these toll lists; one season, about four or five years ago, we sent the lists without the weight, and left it for the collector to estimate; it might have been two or three seasons. These toll lists did not contain the amount of freight charged on the manifest of each cargo, it was only intended to show the weight; the weight of the whole cargo was in tons previous to these years, but the enumera¬ tion of the articles on the toll list was not sufficiently specific for the collector to estimate the cargo by. The manifest clerk made out the toll list; for the last three years wo have been more careful in making up the toll lists than for¬ merly, in endeavouring to ascertain the correct weight and enter¬ ing it upon the toll lists. We keep no copies or records of our toll lists ;■ there has been, during the time I have been engaged in the lines, that coal, and in one instance iron, were carried that has not been regularly entered on the manifest books; but with those ex¬ ceptions, the manifest books here exhibited contain and show the whole of the transportation business of the Merchants and Svriftsure lines; the reason the coal was not regularly manifested at the time, was that we would send a boat up the river to Richmond or Bristol, and we would not have the means of getting the weight of the coal at the time; the coal shipper’s manifest would be taken to New, York by the boat, the captain having instructions to take bill of lading to the agents of the line in New York, of which they would collect the freight, and return it in the accounts at the end of the month, or when collected. I cannot tell how the collector at Princeton ascertained the weight of the coal carried. I was in the habit of making up the monthly amount of tolls due to the canal company; we did not furnish the collector with the number of tons of coal thus carried, we did furnish him with the account of freight received for the coal; the transportation of coal referred to was carried within the last four or five years, amounting, for the season, from four or five hundred tons to twenty-five hundred tons in the year. The iron I spoke of was a large lot of' railroad iron, trans¬ ported to Bridgeport and Hudson, for the Housatonic railroad, in the year 1846; the reason that was-not regularly manifested, was that the agent or shipper of the article, in Philadelphia, could not give us the exact weight; but paid us at diiferent times, when we put the money in the account, at some three or four different pay¬ ments. 1 think there was a toll list sent by the vessel that carried the iron; the shipper at the end of the contract furnished the full number of tons of iron; the collector at Princeton was not informed of the number of tons from our office, (the quantity of iron). There has been variations in the rates of freight from year to year since I have,beenin the office; as a general thing, the rates of freight were higher in 1840 than since, except the year 1847, the rates were then as high as in 1840. On being shown the books containing the estimations made up at Princeton, witness says, he assisted in making them up; they con¬ tain all the estimations made up from the manifests at the rate of twenty a month; they contain a list of all the trips made by the Merchants and Swiftsure lines from 1540 to 1848, both inclusive, eastward and westward, except the coal and iron trips before men¬ tioned. The coal and iron is added in the aggregate sums at the 17 end of one of the hoohs, as to tonnage; this answer is made from personal knowledge of the husiness transactions at both ends of the line; The accounts for settlement of monthly business of the lines are made up in Philadelphia, by myself, the Swiftsure line by J. & N. Briggs, and the Merchants line by Wm.H. Thomson, for the New York end. The accounts made up for settlement with the canal company, are made in the following manner, for instance, we date the manifest the day we begin to load; in the account we enter that date, the name of the barge, and the amount of her freight bill; we then add up the amount of all the freight bills for the month, and meet the executive committee of the canal company the second Monday in every month, generally, for the settlement of the business of the previous month, at Bordentown, We there lay the whole account before the executive committee of the canal company, who examine the same, and one-fourth of the amount of freight is paid to the canal company. In case of losses by freight not collectable, no deduction is made by the canal company on that account; the same per centage of freight has been paid on coal, except one season, when a lower per centage was paid. The ob¬ ject of starting the Swiftsure line was to carry coarser kinds of freight at lower rates, in order to compete with other lines; it was thought that the Merchants line could not well engage in the trans¬ portation of a kind of freight at a dilferent rate of charge by the ton, than was made by them for the finer kind of goods; it was also thought advisable to have two offices in New York, on differ¬ ent sides, one on the North, and the other on the East river, in con¬ sequence of the extent of the city and the great press of husiness. I know of no reason why the transportation business was not carried on by the corporate name of the New Brunswick Steam¬ boat and Canal Transportation Company, excepting that, in the first instance, the Merchants line was the joint property of that corpo¬ ration and of individuals, as partners. The average rate of freights by the Merchants line are something higher than those carried by the Swiftsure line; take the merchandise as carried by the two lines, I think the Merchants line receives from a dollar to a dollar and a half per ton more, taking into consideration the different kinds of goods carried by both lines ; the earnings of the two lines are taken into one interest. There is no difference in the interest, in any way, to the propri¬ etors of these lines; there was a difference to the interests of the agents in New York till the spring of 1817; there is no difference H 78 now. . The Swiftsure line, in New York, receive and forward the coarse winter freight, on the railroad to W. S. Freeman, Philadel¬ phia, the transportation agent of the railroad company, by way of South Amboy, in barges; the goods are delivered to the consignees under the. direction of W. S. Freeman. The goods received in Philadelphia for New York are received by Mr. Freeman, and forwarded to Mr. Decker, the transportation agent in New York. Wm. M. Baird & 'Co. have had nothing to do with the winter transportation; previous to 1847 the goods for that line were re¬ ceived and forwarded by K. F. Loper, the agent of the Swiftsure line, Philadelphia, part of the time to Mr. Briggs, the agent of that line in New York, and afterwards the method was changed, and they were forwarded to A. Decker, New York. The purpose and object of starting the winter line via railroad, was to keep up a continuation'of the canal trade through the winter; there was no difference made to persons, in the summer transportation all ' fare alike. Adjourned to to-morrow. Bordentown, Saturday morning, September 29, 1S49. Examination of Samuel Thompson resumed.—The Camden and Amboy Railroad and Delaware and Raritan Canal Companies have no checks upon the Merchants and Swiftsure lines, except the books of those companies exhibited when settlements are made. The manifests and books are shown at the settlements. When I first went into this department, I received instructions from the canal company to look after their interests, and always have considered myself as acting under those instructions. I have had no interest as stockholder in the New Brunswick company, all the interest I have ever had is since I have been one of the firm of Wm. M. Baird & Co., as agents; I received no compensation directly for services in looking after the interests of the canal company; previous to 1847 I received a salary from the New Brunswick steamboat company; and before I became a partner of the house of Wm. M. Baird & Co.'l always felt it my duty to look as fully into the interests of the canal company as that of the other companies. The books of the Merchants and Swiftsure lines westward, as made up by the persons appointed to.make estimations at Prince¬ ton, being shown to witness, the following explanation of them was made by him: the left hand side contains the account of the Mei-- chants line, the right hand side is the Swiftsure line, both west- 79 ward; the first column is the date of the day and year of the man¬ ifest, the name of barge is in tlie second column, amount of freight third column, tons of merchandise returned by collector fourth col¬ umn, tons of merchandise, per examination by myself and others made at Princeton, fifth column, the freight of the barges there ex¬ amined sixth column; the other side is in the same manner; the other book is of the same character for the lines passing eastward. Upon referring to the books now before me, I find that the collect¬ or at Princeton has not entered in his book one trip eastward, and three trips westward, for the year 1840; in ISll, six trips eastward, and eight trips westward; in 1842, six trips eastward, and five trips westward; in 1843, seven trips eastward, and seven trips westward; in 1844, eighty-one trips eastward, and sixty trips westward; in 1845, one luindred and seventy-five trips eastward, and one hun¬ dred and twenty-five trips westward; in 1840, two hundred and thirty-eight trips eastward, and one hundred and ninety-three trips westward; in 1847, seventy-four trips eastward, and seventy-eight trips westward; in 1848, eighteen trips eastward, and nine trips westward; making 006 trips eastward, and 4SS trips westward, and altogether one thousand and ninety-four trips not entered in the collector’s books at Princeton. I designate or ascertain the missing trips by these books by the tonnage not being entered in the column of tonnage returned by the collector. It appears, from memorandum iu the book, that there was a supplemental return, made by the collector at Princeton, of 11,070 tons of superior mer¬ chandise, for the months of September, October, November, and December, 1846, as the amount of missing trips for those months westward. There appears to be forty-two barges returned in 1847, as going westward, that is, 28 in November, making 2605’tons, and 14 in December, making 1300 tons, returned in gross, without naming the barges or the number of tons of each trip; in my enu¬ meration of missing trips these are included. In 1847, December, the collector returned thirty barges eastward, in gross 2791 tons, being more' than passed eastward that month. If 42 barges are re¬ quired to carry 3905 tons, as it appears by the gross return made by the collector, in 1847, at the same rates to carry 11,070 tons, it would require 119 barges. Assuming the calculation to be correct, I make the whole number of missing trips to amount to 903 for nine years. I believe this mode of calculating the number of miss¬ ing barges to be correct. The a verage tonnage per barge, returned by the collector for the year 1840, was, for the eastward business, 80 as shown by these books, 123.76 tons, westward 115.35 tons, ave¬ rage for both ways 119.64 tons; the same for 1841, eastward 112.51 tons, westward 99.03 tons, average 106.3 tons; the same for 1842, eastward 102 tons, westward 110.19 tons, average 106.8 tons; for 1843, eastward 113.24 tons, westward 111.9 tons, ave¬ rage 116.45 tons; for 1844, eastwai'd 111.77 tons, westward 126.5 tons, average 122.46 tons; for 1845, eastward 123.13 tons, west¬ ward 122.96 tons, average 122.74 tons; for 1846, eastward 111 tons, westward 100.14 tons, average 104.01 tons; for 1847, east¬ ward 105 tons, westward 92.93 tons, average 99.15 tons; for 1848, eastward 115.82 tons, westward 85.68 tons, average 101.48 tons. The whole average of tons of merchandise, eastward and westward, as returned by the collector at Princeton for the whole nine years, is 107.62 tons per barge, and the number of barges 3342. The directions have always been to us, and by us to the clerk, to send, and to the captains to call and receive the toll list. I believe the manifest clerk was always particular to send the toll list to the collector; our present practice in making up the toll list is to fill up the list, enumerating the leading articles of the cargo, perhaps eight or ten, and describe the balance of the cai'go by the general phraseology of so many packages of merchandise, or some such expression, and close the whole by a sum expressing the whole number of tons, according to our estimate of the whole cargo. I think we do not use as much particularity in making out our toll list as we did at Princeton. The rules that we follow in making up the toll list are the same as those we adopted at Prince¬ ton, whenever we have to estimate any particular article. When we do not estimate a cargo by particular articles, we get at the es¬ timate of the cargo by information from the captain, from his know¬ ledge of the depth-of the sinking of his. boat. I should think the lesser number of the cargoes were estimated by our knowledge of the actual weights of the articles. We weighed three or four cargoes as we put them in the vessel, and found that there were from 88 to 91 tons, as an average of four vessels; those cargoes filled the ves¬ sels ; I should judge that two of them were steamers. I have known barges to be full at 60 tons; I have known the largest barges to be full at what I would suppose to be not more than 75 tons. . A very large portion of th6 increased amount of freight of 1847, over that of other years, consisted of produce, a large quantity of grain and flour was carried. The increase of freight for pro¬ duce that year was greater than fov merchandise. I think the gene- I'al increase of freights that year was higher than usual, but about the same increase on produpe as merchandise; I mean an increased rate of per cent., being of course more on a ton of merchandise than on produce; our rates per ton on merchandise are much higher than on produce, I should think as much more as two is to three difi’er- ence on a ton; I should think there would be more difference than that., I could not say, as there are so many different kinds of arti¬ cles classed under the head of produce, to state the proportion ex¬ actly; the rates at present for carrying flour is eighteen cents per barrel, being $1.80 per ton; that, however, is a low rate for flour; the present rate for grain is four and five cents per bushel, amount¬ ing to about $2 per ton; our present rates for dry goods are from 25 to 32 cents, say average 28 cents, per 100 lbs., or $6.37 per ton. Adjourned to Monday morning. Bordentown, Monday, October 1, 1849. Samuel Thompson resumed.—[t has not been our practice to render at the end of the month the gross amount of tonnage to the collector, to ascertain the gross number of barges for any particular month. The collector must have referred to the toll lists sent him, as 1 suppose the only means the collector has of ascertaining the number was from the toll lists sent from our office. The collector could only know what freight was not sent from our office was from the captains of the barges. We sometimes sent freight that did not start from our office to New York; also know of its pass¬ ing both ways in the same manner; a very small portion, if any, would come or go through the whole length of the canal; a small portion would go through the whole length of the canal. I have no recollection, and don’t think our line ever carried any iron from Bristol to New York, or elsewhere, through the canal. It is fre¬ quently our practice to carry superior and inferior merchandise in the same vessel, but they are never designated in the toll fist; the collector could designate only so far as we entered them down on the toll list or by information from the captains. In making out our toll lists we had it not in our ideas at all the difference between supe¬ rior and inferior merchandise. We have carried a good deal of inferior merchandise. We found, upon examining the .collector’s books at Princeton, that in a few instances he had designated the ipferior merchandise; the cargoes are so arrakiged that he could designate the inferior from the superior merchandise. There was formerly a clerk standing in a confidential relation to the canal company in New York, the same as I held in Philadelphia. It was John G. Neilson, of the firm of Thomson & Neilson, who stood in that relation till he died, in the year 1844 or ’45; since his death there is no such agent in New York, as I know of. I have heard, years ago, of frauds being perpetrated against the canal company by boats going through the canal;, it was before and about the time I entered the office in Philadelphia Merchants and Swiftsure lines. I went there with instructions, and for the purpose of guarding against such frauds; that was to be my situation; that has always been a feature in my relations with the canal company. In examining the collector’s books in the course of examination at Princeton, I have found instances where the collector entered the cargo superior, when it contained both superior and inferior. I judge so from the entries on his books, because I could see no inferior entered. The cases 1 refer to there was a sufficient amount ' of superior cargo to cover both superior and inferior, and more too. 1 observed and noticed that this frequently occurred. In making the estimates at Princeton, we made no distinction between superior and inferior cargo; the estimates show the whole burthen of the boats, including both superior and inferior, and the freights enter¬ ed in the books show the whole amount of superior and inferior cargo; the column in the books showing the result of the investi¬ gation, which contains the collector’s entries of tonnage, embrace his entries of both superior and inferior cai go of the boats speci¬ fied, only a very small amount of it was entered by him as inferior. The amount of inferior merchandise entered by him does not cor¬ respond with the amount the boats carried, by any means; it is but a small amount of the inferior really carried. I should think that, exclusive of coal, the barges have carried from 17 to 20,000 tons of inferior merchandise Jn the last nine years; in reference to taking up freight by a boat or'barge, after she leaves New York or Phil¬ adelphia, and before entering the canal, I would say that our boats do not stop on the rivers at all; sometimes freight is taken from Burlington to Philadelphia, and shipped there. We have sent boats empty to Bristol for coal, and to Robbins’ wharf, above Bristol, for corn. We would have a manifest in Philadelphia of the corn be¬ ing shipped by persons in Philadelphia, but not of the coal. The amount of coal shipped, either from Bristol or Philadelphia, or elsewhere, is entered in the books containing the results of the estimations at Princeton. I mentioned, the other day, that we had weighed, for experiment, some boats containing fair ordinary car- goes. In going over the collector’s books at Princeton tve found quite a number, say 25 to 30 .barges, of the Merchants and Swift- sure lines, more than the number of trips which those particular barges had made, and which do not appear in the column of col¬ lector’s returns on the statement books to which I have referred; our inference was that the collector had entered a barge by a wrong name by mistake. These surplus barges should be deduct¬ ed from the number of missing barges, as appears by the books. The toll list, almost invariably, was sent by the captains of the boats, but we did occasionally send them by the conductors of the trains passing Princeton; these were instances when the captain had neglected to call for them, or when he had sailed so early that there was no one in the office. In looking over and examining the collector’s books, I found a much larger amount of tonnage i-eturn- ed than tlie boat was capable of carrying, in many instances, for instance, the barge Dolphin, in August, 1S40, was laden on the 13tb August; the collector had her entered 177 tons, and she had but 116 by our estimate. AVe frequently found instances even more marked than that, when there rvas no doubt whatever of the weight of the cargo, it consisting of simple articles. In such cases as these the collector could have received something like the true amount by applying to the captain of the barge. AVe sometimes include in our manifests goods that were in part transported on another barge; in such case such part of the goods would not appear upon the man¬ ifest of the barge carrying them. I do not think that this fact could account for the collector putting down so much larger amounts for particular barges than they actually carried. In the first place, the toll lists were not so arranged, but each corresponded with the ac¬ tual cargo on board; besides, the cases to which I have referred were not cases where the lot was divided. The articles of inferior merchandise carried were lime, bricks, clay, &c. SAMUEL THOMPSON. Sworn and subscribed, the let day of October, 1S49, before the commissioners. Aako.x PonERTsoN, CVn. Bordentown, October 2, 1849. ArcTiimedcs Hechnan, being duly sworn, deposeth and saith— I reside in the city of Philadelphia. I am in no way connected with the Merchants or Swiftsure lines. I am derk with Capt. R. F. Loper; lie is not now connected with either of those lines. I was formerly in the employment of Loper & Baird, while they were the agents of the two lines in Philadelphia; I began in April, 1843, and left in the latter part of 1846; they were all that time the agents of the two lines; part of the time, in 1843, 1 was engaged in making out bills and other writings; part of 1844 1 was doing the same; part,of 1844, the latter part, I was collecting freight bills. In 1845 and ’46 I had charge of the Hartford line. I have occasionally made out manifests for the Merchants and Swift- sure lines, not often. The receiving clerks would furnish slips to persons bringing goods, and they would hand the slips to the per¬ sons employed in making the manifests, for the purpose of making them up. The manifest would be entered in a book, and a copy forwarded to the agent in New York; I believe they were always sent by mail. The custom house clearance and toll list were sent by the captain of the boat or barge; according to my recollection, it was the practice for every boat to get a clearance from the cus¬ tom house; it was also the custom for every boat to enter at the custom house on arrival. I have prepared toll lists to send by the boats; those lists contained the names and amounts of the princi¬ pal articles on board, stating where from and where to, and the number of tons, in the proper place, in the centre of the list. The weight or tonnage of the different articles was not named on the toll lists; the amount of tonnage was given by the captain to the person making the toll list; the captain reported verbally, so many tons, to the person making the toll list, and judged the amount of tonnage by the sinking of the vessel in the water; the captain was depended upon to do this, it was his duty; I don’t know that he ever neglected this duty, of my own knowledge, and I never knew ■ a boat to sail without a toll list. I was engaged part of this time in making estimates at Princeton, can’t say how long; I was very irregular in my attendance there; I was there parts of four differ¬ ent weeks; my estimates are marked with my initials. I made es¬ timates of several different years, which are now here; 1 had some . difficulty in making estimates at times when it was not specified what particular kind of articles they were; my guide was the knowledge of the persons’ names and business who shipped goods, having reference to the amount of freight. In most cases, however, I did not have much difficulty in estimating the weight; I consulted with the other estimators occasionally. I examined in both lines, and I believe invariably to New York, not from New York. I oc- casionally discharged barges while employed with Loper &: Baird in the business of the Merchants and Swiftsure lines. We used tables at Princeton to aid us in making the estimates: the table used by me principally was prepared in Philadelphia by Mr. Baird’s order, I can’t say by whom. The estimates made by me show the full weight of cargo examined by me; I tried to have them as correct as possible. I had some knowledge of my own, os to the weight of articles; a large proportion of the goods, of my own knowledge, I was acquainted with weight of; the table I used appeai-ed to be correct, so far as my knowledge extended; the principle I took in examining the manifests, was to take the 1st, 7th, 13th, 19th, and 25th days of the month ; 1 followed this plan as near as the duty would admit; I in no instance deviated from this rule in order to take a particular manifest. It was the business of the manifest clerk to make out the toll list; I did it occasion¬ ally, when the manifest clerk was sick, or something else. When with Loper & Baird, I had almost the entire charge of the Hart¬ ford line, in 1845 or’6; there was no receiving or delivering clerk, except myself, in relation thereto. I can’t say whether I made the toll lists for the Hartford line or not. ’The Hartford line went through the canal; the manifests of this line were sent by mail; the receiving clerk prepared the manifest and bill of lading for each lot of goods. I cannot say whether the boats of the Hartford line invariably carried toll lists or not; when they did carry them they were of the same character as those carried by the other lines. The amount of tonnage carried by the Hartford line was ascer¬ tained from the captains, according to the be.st of my knowledge. The tonnage was marked on the toll lists. 'The manifests of the Hartford lino were ])repared in the same way as the other lines. If any of the boats of this line were sent without toll lists, I can’t say how the collector at Princeton ascertained the amount of tonnatre. The Hartford line of boats consisted, in 1845, part of the time,"or one steamboat, called the Col. Stevens, and one schooner, Lois; also the schooner Temperance, a transient vessel, chartered for part of the time; and there might have been two or three other transient vessels at times. In the following year, 1846, the steamer Cones¬ toga ran; the schooner Shoal Water ran from Hartford to Phila¬ delphia, carrying some merchandise for this line, but don’t recollect her carrying merchandise back; they did not invariably enter and clear at the custom house at Philadelphia; they did not, unless they had foreign merchandise on board. I have had no connection with tlie Hartford line since 1846. I did not make out the accounts of the Hartford line for settlements with the canal company. The boats of this line generally ran full. The Col. Stevens would carry over one hundred tons of such articles, as she generally carried. Our freights from Philadelphia were invariably coarse freight; the return cargo was always domestic goods, cloths and assorted mer¬ chandise, general light goods, wool and cotton goods, light hard¬ ware, such as coffee mills, clocks, and notions generally; tobacco was' often carried; the boats generally returned loaded. The agents of the Hartford line, in Philadelphia, now are Wm. M. Baird & Co., the agents in Hartford are M. W. Chapin & Co., of Hartford. The names of the boats of this line now running, are the Josephine, Dupont, and Rough and Ready, all steamers. The proprietors of the Hartford line, at the time I was employed, were Loper & Baird, of Philadelphia, and M. W. Chapin & Co., of Hartford. I can’t say who are the proprietors of the line at pre.: sent. W. R. Derricksdn, the captain of the Stevens, had an inter¬ est in her in 1846. I did not. e.vamine the collector’s books while at Princeton; we only used the manifest books in making the esti¬ mates; the manifest books of the Hartford line I did not see there; examined no toll lists of the Hartford line while there. The rates of freight of the Merchants and Swiftsure lines -were higher in 1847 than in any other year, according to my recollection. The rates of freight were lower in 1844 than in previous or after years; in 1848 they were lower than in 1847, but not unusually low, they were perhaps an average. 1 can’t say there was a gradual decrease from the first year I examined to the last, omitting the year 1847; my impression is, that in 1847 there was an advance in the rates of freight of all kinds of goods; I think there was a great increase of freight in 1847 over 1846; my impression is, that rates of freight in 1846 ’46 were about the same as they were before 1844, Tspoke of having the whole agency of the Hartford line; when I was there I kept the manifest books only, not the accounts; William M. Baird kept the accounts at that time. I believe the whole ac¬ counts were kept in the Philadelphia office for both ways, so far as regards the tonnage. The Hartford line carried coal sometimes with transient .vessels; when they carried merchandise with the coal, I sent manifests containing coal and all. • , -A. HECKMAN. Sworn and subscribed, the 2d day of October, 1849, before the commissioners. A.\noN Robertson, Cli’-ii 87 Bordentown, Wednesday, October 3, 1S49. Peter V. Degraw, being duly sworn, deposeth and saitb—I am a collector of tolls on the Delaware and Raritan canal; was ap¬ pointed principal collector on the 1st September, 1S3S. Isaac Mil- nor preceded me; my office is now at Princeton basin, and lias been there; my duties, as collector, have been to receive the tolls, to see that the proper entries were made in the books, and to ac¬ count to the treasurer of the canal company, and pay over the tolls received. The treasurer is Mr. James Neilson, and has been for the whole time. My duty was not to receive tolls daily on certain vessels, some paid monthly; the vessels of the Lehigh Goal and Navigation Company, the coal barges of the New Brunswick Ca¬ nal and Transportation Company, the freight barges of C. & F. King & Co., Philadelphia, the freight barges of Miller & Bancker, New York, A. & W. R. Packer’s boats, were of this kind. These were in the early part of my collectorship; at a later date, the ves¬ sels of Loper & Baird, Philadelphia, the barges of McHenry, from New York, the barges of Thomson & Neilson, New York, J. & N. Briggs, of the same place, Win. M. Baird & Co., Philadelphia, the schooners and steamers of the Hartford line, between Phila¬ delphia and Hartford; also a line of late date, called the Albany line, the line of Geo. W. Aspinwall & Co., to and from Albany to Philadelphia, which latter line is now merged in the Commercial line, trading between Philadelphia and Albany, and the said Com¬ mercial line, pays in the same way. The Easton line, to and from Easton and New Brunswick, the Hazleton Coal Company,' the Beaver Meadow Coal Company, the boats of Maurice Buckman, the Baltimore line of steamers and barges—these are all I think of at present that have paid tolls monthly. J. W. Pennington acted as collector for the canal company at Pairmount, and collected certain through tolls, which we consider¬ ed as daily tolls, and for which he accounted to me monthly. This was for tolls on coal, alone, that came down the Schuylkill. The major part of the boats of those lines that paid monthly were en¬ tered daily as they passed—at an early date all of them were. The entry contained the date of passage, name of vessel, the amount of the tonnage actually on board, and the amount of toll in money. The evidence from which I ascertained the amount of tonnage, was from the manifest accompanying the boat; when I did not get it from the manifest, I derived it sometimes from inspection, and sometimes from the statement of the captain of the vessel; some¬ times, on inspection, I found the tonnage to exceed the manifest; vessels frequently passed through the canal vrithbut manifests.— What we call a toll list, is a manifest of the cargo without the freight being carried out in money; I considered that the toll list; it is the paper from, or according to which the vessel pays the toll. The Albany line, for a white, carried manifests on which the freight was carried out; almost all the bills of lading of coal boats embrace the freight. The manifests or toll lists of those vessels which paid monthly did not, in all instances, specify the tons; in such cases I had to form an estimate of the tonnage entered on my book from inspection of the vessel, her size, custom house mea¬ surement, &c.; I always took care to get it enough. I received in¬ structions, as to ascertaining the tonnage, from Com. Stockton and Mr. John R. Thomson. My general instructions with regard to as¬ certaining the tonnage were, if I had any doubts as to the correct¬ ness of the manifest, to inspect and overhaul the vessel, and unload her, if necessary. I was instructed to use great care in ascertain¬ ing the tonnage. There were no instructions to depart from this rule in regard to those vessels which paid monthly; the same re¬ gard was paid to the ascertainment of the tonnage and entries as with other boats, no distinction was made. There were instances of the vessels of these lines passing my office without a manifest; I can’t say they were frequent. The boats of these lines passed my office frequently without an entry being made of the trip in the collector’s books. The cause was, frequently, that the manifests would come sometimes next day, sometimes by the next boat, or at the end of the month. Some of the lines did not furnish me at the end of the month with the aniount of tonnage they had sent through the canal during the month; some did send me the amount of tonnage they had sent through the canal during the month. The Commercial line furnishes such an account, and my impression is that Aspinwall’s line did the same. The Merchants and Swiftsure lines did not furnish such an account, neither did the Baltimore or Hartford lines, neither did the coal lines. In some cases when a vessel in those lines, which did not return the tonnage monthly, came witliout a manifest, she was permitted to pass without an estimation of her cargo. When a vessel has thus passed, and no monthly return of tonnage was made by that line, we had no correct means of ascertaining her tonnage. This hap¬ pened to a considerable extent, in some parts of the period of 39 which I have held the collectorship. When this has happened, , means have been taken since to ascertain the true tonnage. The books of those lines have been, compared with our books. I pre¬ sume the treasurer of the canal company makes his return to the state treasurer, of the number of tons of merchandise transported from my account. I render an account to the treasurer of the ca¬ nal company monthly, for that purpose. I have made these monthly returns to the treasurer, in some instances, before ascertaining the correct tonnage, before comparing of my books with the books of the lines. In such cases the account so furnished to the treasurer of the company by me would not be a true account of the mer¬ chandise actually transported. The books of the collector of the canal company have not yet been corrected, from any examinations which have been made by any actual entry yet made in the books, or by any return to the treasurer of the canal company. I would make an exception, however, of 11,070 tons, an additional or sup¬ plementary return, made in March, 1847, for the last four months of the year 1846, during which last year I was sick and absent from my post, and the duties of my office were performed by my deputy, Mr. Manning, and the clerks in the office. 1 was absent from the office that year the months of July, August, and princi¬ pally in September. From the means I had at that time, I believe the supplemental return embraced all the merchandise that bad not been previously returned for that season, of 1846; from what I have since learned, a great many trips have been omitted, both in that and other years, which have not been embraced in the addi¬ tional return made 1847. This supplemental return was made for the barges of the Merchants and Swiftsure lines alone: this was for trips to the eastward and westward. When it was discovered that omissions had been made for the months of September^ October, November, and December, 1846, there was no examination made to see if there had been omissions made in the other months of that year. I have since discovered that other omissions were made in that year; this discovery has been made recently. I was led to the discovery of the omissions of the four latter months of 1846 from the small number of tons of merchandise I found entered in my books for those months. The other months did also appear comparatively small; it was observed by me at the time. The discrepancy was not so great, however, as to lead me to suppose that the entry might not be correct, and therefore I said nothing about it. I do not think the same kind of omissions have occarred with regard to other transportation lines as witVregard to the vessels of the Merchants and Swiftsure lines. The reasons why t think' so are, that they were a great deal move particular in sending the manifests regular with their vessels; an¬ other reason was, the Merchants and Swiftsure lines despatched vessels a great deal more frequently than other lines, very often coming atyay in the night, whilst other lines had more time, as they did not make so many trips; another reason is, that we were a great deal more particular with other lines, in writing immediately for a manifest, if they had not sent one. The reason why we were not so particular with the Merchants and Swiftsure lines was, that they had been running a long time, and I knew there had been some omissions, and I considered it an unsettled account, that -would have to be adjusted at some time. I had discovered that an omission had been sometimes made previous to my discovering the omissiotis of 1846; I think I named it to some one of the execu¬ tive committee some time previously, but not at that time. My in¬ structions were to write to the agents of the transportation com¬ panies immediately, that the manifests must be sent by the boats without fail, and if not sent by the first boat, to be invariably sent by the next;.and I did write accordingly, but never received any written communication from them; but they were more punctual afterwards for a while. The officers of the company instructed me, after the discovery of the omissions at the end of 1846, to re¬ quire a manifest with every boat, or, at all events, the boat next following. I think there was more regularity in sending the mani¬ fests than there had been before; and there have been, however, omissions since, up to the present season. The present season they have been uniform, and I don’t think they have omitted sending a single manifest. I wrote to those gentlemen, that unless a manifest did come with the vessel, or they advised me that it would be for¬ warded by the next vessel, I should tie her up in the basin till one did come; and I have stopped two or three this summer. On being shown the book of the collector for 1838, westward, ho says, the entries in this book of the cargoes of the barges of the transportation lines are copies of the manifests or toll lists sent to me, with the exception of the weights of the respective articles of cargo, which were estimated by me, and set down in the book; the last statement is true with regard to all vessels. I find, in examin¬ ing the collector’s books of that date, (with the knowledge I now have) that the weights of cargo were over estimated to a consider- able extent. The over estimation occuiTed in this way: my in¬ structions were imperative, in making out the estimates of tonnage, to make a large estimate, and therefore they are usually large. I had tables of weights of particular articles, for instance, dry goods at so many pounds to the cubic foot, and different rules for differ¬ ent articles; a great many articles 1 had to get at from the best of my own judgment. I could not, from the knowledge I have since acquired, now correct the estimates 1 then made by the aid of the books alone. My opinion, that the estimates made by me were overrated, is founded on a comparison with my hooks and the books of the transportation officers; and by that comparison it appeared that the toll lists contained more articles than wore on board, as, for instance, I have known a vessel to have on her toll list 200 boxes of tea, when on examination she had not a pound of tea on board; this instance was altogether an error. I have known fre¬ quent instances where the manifest of one boat contained articles, part of which she did not have on board, but which would be on board the next boat; no reliance can be placed on the toll lists made out previous to the present season, as a means by which the collector might ascertain the correct tonnage; after all, I had to find out the amount of cargo from the draft of the boat, or from the captain, or from knowledge of the boat’s capacity, or some¬ thing of the kind. 1 do not consider the method that I was com¬ pelled to take a correct method of coming at the weight of cargo, or one that ought to be relied on. I believe the method of ascer¬ taining the tonage by the estimation of the collector could be de¬ pended upon, if the manifest sent to the collector by the transpor¬ tation office contained a true account of the cargo, with the freight of each article carried annexed. Tliere would be difficulty on ac¬ count of the variable weights of packages of general merchandise, ■ to ascertain the weight of which the collector must have a know¬ ledge of the freights charged, and the rates of freight charged by the transportation officers. The correctness of any method hitherto adopted for ascertaining the tonnage of merchandise transported through the canals by the transportation lines, depends very much upon the honesty of the transporters; if they do not furnish us with a correct list of cargo, we have no correct means of ascer¬ taining the weight of cargo without unloading the boat; and if they do not furnish us with a correct list of their charges, we have no means of ascertaining the weights from the charges of freight. Adjourned to to-morrow morning. 02 Bokdentown, October 4, 1849. Peter V. Degraw resumed.—I have known vessels to come to my office with a false manifest; in some cases I have known such vessels to carry two manifests—a false one, which they exhibited to pay toll by, and a true one. 1 have never known an instance of the kind by the vessels of those engaged in the regular transportation business, with the explanation of what I said before, that sometimes the boats of the Merchants and Swiftsure lines would have on their manifests goods brought by another boat of the same line follow¬ ing; the toll lists would not apprise me of variations in the rates of freight made by the transportation companies, even if they contain¬ ed the actual freights charged, consequently my estimates of freight must be uncertain. I have, in;some cases, made my estimates of tonnage materially too small, as well as materially too large in oth¬ ers; the estimates in all cases have been made with my best judg¬ ment and information at the time of making the same; the error arose, in all cases, from not having proper materials to make the same, whether too high or too low. The omission to enter trips of the boats might have been caused by the neglect of the clerks at the collector’s office to enter the same when a manifest had been furnished, and also by the neglect of the captains to get put and leave their manifests, when they were supplied with them, espe¬ cially in the night. I think the same omissions could not be made by transient vessels; ray reason is, that lock tenders, knowing these vessels are regularly employed in the transportation of freight, and not paying their tolls each trip, as transient vessels do, permitted them to pass without a clearance, when they would not permit a transient vessel to do so. I have compared my books with the re¬ gister of entrance to and from the caiial, kept by Capt. Raymond, at Bordentown, since July, 1846. A comparison has been made; I was present part of the time, and part of the time was not. There have been numerous instances of transient vessels passing the col¬ lector’s office.at Princeton without stopping for their clearance, but were detected at the locks at both ends of the canal, and detained until they had obtained their clearance at the collector’s office. No instance of their'escaping the payment of tolls has come to my "knowledge. Upon examining Capt. Raymond’s hooks, and compar¬ ing them with ours, we have found vessels registered in his books not in ours, and vessels registered in our hooks that were not in his hooks, I mean through vessels or vessels that were designated such 93 by the books. I think, on this examination, there were vessels of other lines, having special contracts with the company for the pay¬ ment of their tolls, than those .of the Merchants and Swiftsure lines, which were registered in Capt. Raymond’s books, and not entered in our books. I have only knowledge of one line in which I think this has occurred, and that is the Albanj'. It might have extended to other lines, but I am not prepared to say whether it did or not. I cannot give particulars of the Albany line, because I was not pre¬ sent during the whole examination. I can give a reason why the vessels of those lines should frequently ajtpear in Raymond’s books, and not in ours, I mean the fact, that they would come to our office as a light boat, having no through freight, but taking way freight along the line of the canal; such vessels would be entered by Capt. Raymond as vessels laden with merchandise; the tolls would come into us at the end of the month on the general account; the tolls not being collectable as the boat passed, and the freight being way freight, not being subject to transit duty, we had no occasion to enter the boat in our books; the boats of these regular lines did not till lately pay lockage and mileage. The folloiving transporta¬ tion lines, at the present time, do not pay tolls according to the general tariff of tolls: the Merchants and Swiftsure lines, the Commercial Transportation Company, the Hartford line, the Baltimore line; these are all that 1 have any knowledge of at pre¬ sent. As to the Baltimore line, wc have never had a settlement with them, and I do not know what the precise arrangement is with them; it has been in operation only three or four months, it being a new concern. The Merchants and Swiftsure lines pay the canal company one quarter of their freight, one quarter of the whole freight charged by them on all merchandise; that is the way ( understand it. It- is not my duty to settle with these companies or lines. settle with the Hartford line and the Commercial line; the Hartford line pays seven per cent, on the freight of coal, and ten per cent, on the freight of merchandise. This is the toll they pay on articles which they pass through the canal; they run be¬ tween Philadelphia and Hartford. The Commercial line pays fif¬ teen per cent, on merchandise, and ten per cent, on coal, on the freight charged. This line runs between Philadelphia and Albany. There is no special arrangement with the Easton line, at-present they pay the regular rates of toll. I presume the object of Capt. Raymond’s book is to keep a re¬ gister of every boat that passes his lock, that is my understanding 94 of it. It has lately been the practice of the superintendent of ac¬ counts to compare his book with mine, to see that no boats have been omitted. This practice has been adopted in consequence of finding that many boats had been omitted. When I say that the estimates of tonnage made by me were made according to my best judgment at the time, I should add, that always there was a dispo¬ sition to make them large and liberal; that was according to my instructions. I vyould undoubtedly place confidence in the esti¬ mates lately made at my office in Princeton; my belief that my en¬ tries of tonnage have exceeded the amount of cargo, is founded, in a good degree, upon the estimates which have been made at Prince¬ ton this summer. I would have more confidence in the estimates made by the persons who made that examination than I would in my own personal knowledge of the subject, situated as they were, and situated as I am. Prom their knowledge of the business of the transportation offices, I should have confidence in their being able to get nearer at the truth. If they should furnish me estimates care¬ fully made by themselves, I could rely on having the correct amount of tonnage in this way. In such cases I should have to rely on their correctness and integrity. The officers of the canal company or of the joint companies have never directed me to omit to return any tonnage that has passed through the canal, and never have indi¬ cated any desire for me to do so; their general instructions have always been that all should be returned. From my intercourse with them, I believe it to have always been their desire and wish that it should all be returned; so far as I know and believe, they have always supposed that all the merchandise transported through the canal has been returned to the treasurer of the canal company, un¬ til after it was discovered that some had not been so returned. To the best of my knowledge and belief, it has always been their de- .sirc that any merchandise omitted in the returns should be returned afterwards. It was one of the objects of the examination made in my office this summer, to ascertain the merchandise which had been omitted, in order that the amount might be returned. It is the purpose of the officers to ascertain, if possible, the full amount that has been omitted, in order that it may be returned. This is expect¬ ed to be done with regard to any other lines in which omissions may have been made, as well as with regard to the Merchants and Swiftsure lines. My instructions from Com. Stockton, president of the canal com¬ pany, always were, that whenever I had any doubt whether mer- chandise belonged to the class superior or Inferior, in reference to the higher or lower transit duty, to decide in favour of the state, and to put it down as superior merchandise. I have always done this to the best of my knowledge and belief; it is the rule which has governed me throughout. It first came to the knowledge of the officers of the company that omissions had been made in the re¬ turns made to the treasurer of the canal company at the close of the year 1S46, or the beginning of the year 1847, so far as I know and believe; I thereupon received instructions from them to ascer¬ tain and return to the treasurer of the canal company the amount which had been so omitted. It was on this occasion that I made the return of the 11,070 tons. So far as ’I know, and as I believe, they supposed that this return embraced the amount of all the omis¬ sions that had been made. To the best of my knowledge and be¬ lief the first knowledge the officers of the companies next had, af¬ ter this occasion, that other omissions had been made, was after the commencement of the present investigation at Bordentown. AVith regard to vessels which pay as they go, the way I ascer¬ tain the amount of cargo on board is as follows: in the case of ves¬ sels loaded with coal, I ascertain it by the bill of lading and ton¬ nage of the vessels, and so generally with a vessel loaded with one description of articles. In case of promiscuous cargo, 1 am go¬ verned by the bill of lading and inspection. It was at the opening of navigation this season that I wrote to the agents of all the trans¬ portation lines paying monthly, that unless the manifest came with the boat, or I was advised that it would come by the next vessel, I should stop the boat. The omissions in 1S4S were very few; the omissions in 1847 were a great deal less than the previous year; very few omissions were made prior to 1845; to the best of my be¬ lief there were none prior to 1840. AVhen I mentioned that there were omissions in the Albany line, I meant omissions of sending manifests of vessels, but no omission of tonnage. The tonnage was entered regularly at the end of the month. 1 settled their accounts myself, and got the weights of merchandise and coal; 1 got the weights from the agents of the company, and statements from their books. 1 am confident that the additional return made in 1847 was for both eastward and westward merchandise for the last four months of 1846. It frequently occurred that in the case of the Al¬ bany line, where the tonnage was entered in gross at the end of the month, that the tonnage both ways was entered either in the east¬ ward or the westward book, without discrimination ; and so in this case,. although the additional return is entered in the eastward book, yet I know the. fact that it was intended for both ways; the Albany line was often entered the same way. In order to ascertain the amount of omissions in the year 1846, 1 wrote to the agents of the Merchants and Swiftsure lines, at both ends, to furnish me a manifest for each and every trip; they did so, to the best of my knowledge and belief; by, manifests, I mean what the agents call toll lists, and such as are usually sent by vessels. I don’t remember how many they sent me; 1 directed them as to what period of time to send manifests; 1 did not consider that there were any. omissions of any consequence previous to that. The time designated was the last four months of the year 1846. They did not specify thereon the number of tons, either for each cargo or the whole amount. In making up the amount, I had to he governed by the documents sent to me. When I said, yesterday, that the practice of inserting the tonnage of cargo on the manifests sent by the boat commenced with this season, I had reference to the general practice; it was sometimes done before that. My duty with regard to all vessels, whether they paid toll monthly or as they passed, has always been to enter their cargo on my book the same as though they did pay toll as they passed, and to return the gross amount of tonnage to the treasurer of the company, at the end of the month, embraced in my regular returns, and as a part of my regu¬ lar.returns. In reference to omissions of tonnage of other lines than the Merchants and Swiftsure lines, I find now, on referring to my book,- that there have been omissions of trips by the Hartford line, and I am under the impression that the same is true with regard to the former Baltimore line, running in 1847, and I am not certain that there may not be omissions in other lines. As I stated before, the company intend to examine with regard to other lines. The tolls lists here produced by me are a sample of those fur¬ nished to me prior to the present year, by which it is impossible to arrive at the correct amount of cargo. From my experience, as col¬ lector at Princeton for some years past, the plan that I would pro¬ pose as calculated to be more correct than that which has been pur¬ sued, would be a weigh-lock. I have heard complaints made by captains of vessels, not belonging to the regular lines having spe¬ cial contracts, of partiality to boats belonging to those lines; com¬ plaint has been made that there ought not to be any arrangement made by which a line should have any privilege, over a particular vessel or an individual; I can’t say they have been fi-equent. I 97 think there has been an increase in the transportation of general merchandise in transient vessels from New York within the last few years. I don’t think thefe lias been any increase the other way; if any, it is very small. I spoke of an unsettled account of the last trips of the Merchants and Swiftsure lines; I never brought the subject before the executive committee or directors. 1 did not be¬ come fully satisfied that there were omissions of tonnage till the pre¬ sent investigation began. I knew there were missing trips, but I thought the tonnage returned would correct it. The knowledge that there were still omissions not covered, was brought to my knowledge by the present investigation. On the attention of the witness being called to an entry on the collector’s hooks of S1082.12 for tolls on coal received by J. W. Pennington, collector at Fairmount, the tonnage 1829.07 tons, set down to con'espond with the money, is incorrect, that the tonnage should be 3591.4 tons. That the mistake occurred in the following manner: I was required to make my return to the treasurer of the canal company by the first day of January, to enable him to make bis return to the state treasurer. In order to make up the state¬ ment of tonnage, not having received Pennington’s account, I made up his account for December from the tickets which 1 had received, signed by him, making the entry as it stands in my books. The increase of tonnage in his statement, when received, was caused by his blending some of his November tolls, which he had not re¬ turned in bis November account, in his December account. ’This explanation is made according to the best of my recollection at the present time. October 5, examination continued.—The mode of estimating or ascertaining tonnage has frequently been a subject of discussion and consideration with the company, with a view of a greater de¬ gree of correctness in that respect. Difficulties have presented themselves to the company with respect to any mode suggested. A weigh-lock would not determine the weight of superior and in¬ ferior merchandise separately, when a boat carried both kinds of merchandise. You must know the weight of the vessel to make an estimate of cargo correctly by a weigh-lock. The weights of many transient vessels would be unknown. The company rely upon my estimates of cargo of transient vessels with respect to the tolls charged. I am authorized, as collector, to swear any ‘Captain of a boat, with reference to the amount of cargo of his boat or the correctness of his manifest. My opinion is, that a weigh-lock would be more satis¬ factory, generally, as a means of ascertaining the weight of cargo, than the plan or mode now in use; my principal reason is this, the bulk or majority of transportation on the canal is coal; that being solely inferior cargo, we can undoubtedly get the correct weight of it. There are also many instances of cargoes composed entirely of superior merchandise, and then again there are frequent cases in which the cargo is mixed, that is, made up of superior and inferior both. There have been instances of attempts being made to deceive the collector with regard to the number of tons of coal carried by a boat; they have not been frequent. To the best of my knowledge and belief, all the tolls due to the canal company from the Merchants and Swiftsure lines have always been regularly paid. This is also true with respect to all other re¬ gular transpbrtation lines through the canal, except in one or two instances, where the parties became insolvent. The question of the mode of ascertaining canal tonnage has been a subject of conver¬ sation amongst the officers of the company for years past. I think the matter was considered by them, on account of the difficulty which they knew the collectors on the canal laboured under in getting a correct account of the cargo, from having to overhaul it. There are other collectors besides the one at Princeton, who are authorized to collect way tolls. The duty of the Princeton collec¬ tor is not to collect way tolls, unless the vessel passes his office; but he, alone, collects all the through tolls, there being but one office for through tolls. PETER V. DEGRAW. Sworn and subscribed, the 5th day of October, 1849, before the commissioners. Aakon Robertson, Ch’n. Boruentown, Saturday, October G, 1849. William T. Anderson, hemg duly sworn, deposeth and saith—I am at present book keeper of the New Brunswick Steamboat and Canal Transportation Company, and 1 reside in New York. I have been in that situation since the tnonth of May, 1837, all the time in New York. 1 came, at that time, from the Hudson River Steam¬ boat Association; that was the first of my connection with the New Brunswick company, before named, or with any company connected 99 with the joint companies. During this time the only out-tioor busi¬ ness I have attended to on behalf of said company has been their coal barge business. I have attended to the accounts of the steam towing business during the whole period, up to IS'IG. Prom the year 1837 to the year 1846, the boohs I kept showed the entire account of the steam towing, so far as 1 know it; by the steam towing business, 1 mean the towing of boats, vessels, and barges between the city of Now York and the eastern termination of the Delaware and Raritan canal, and between Philadelphia and the western termination thereof, or, more generally, to and from both terminations of the canal; this towing was done by steamboats, sometimes called steam tugs. The names of the vessels thus em¬ ployed, since I have been acquainted with the business, arc the New York, Hornet, Thistle, Swan, Princeton, and the Amboy, and from time to time, when they have been disabled, we have been obliged to charter other boats temporarily'; these that I have men¬ tioned have been employed on the New York end, the other end the Amboy, part of the time, the New Jersey, Camden, Burling- tan, and Philadelphia; these boats did not all run at the same time. I think the average was about four running on the New York end; I can’t exactly answer for the Philadelphia end. Part of the time Mr. Gatzmer kept the accounts of the business at the Philadelphia end, preliminarily to their being entered in my books; this was in the years 1S40, ’41, and ’42; the remainder of the period the re¬ turns were made to me regularly, as they occurred, monthly, and entered in my books, at the New York end; they always were en¬ tered currently in my books as they occurred. Mr. Gatzmer always made to me the monthly returns of the business at the Philadelphia end, except in the years 1840, ’41, and ’42, which were subse¬ quently rendered to me in gross. The receipts of the towing were rendered to me mpnthly, generally by Mr. Gatzmer; some tran¬ sient towing at the New York end was rendered to me by the captains of the steamboats that did the towing, monthly; some of the time I got the accounts of the receipts of towing from Mr. A. S. Neilson, the treasurer of the New Brunswick company, who, I believe, got them from Mr. Gatzmer. By transient towing, I mean the towing of vessels not usually employed in the canal. Some¬ times a boat, for accommodation, would tow a vessel put of the slip, or, on the river, to get through a reach, or some temporary job of that kind, and now and then an instance of a vessel to and from the canal, which had not paid at the proper place; this I call 100 transient towing, the receipts of which in money, and the accounts of which came into my.hands from the captains of the towing boats. I received no other moneys, on the steam towing account, that 1 recollect. The, moneys due for steam towing were usually paid to the treasurer of the company, or came to his hands from those to whom it was originally paid; I do not know who actually collected it. I think at one time Mr. Degraw, the collector of the canal com¬ pany collected it. During the three years, 1840, 1841, and 1842,1 got no account of receipts from towing to enter in my book, except the receipts for transient towing at the New York end, and an ac¬ count of the towing of the New Brunswick company’s toll barges; the. balance of the receipts for those years were subsequently ren¬ dered to mo by Mr. Gatzmer, and entered by me in gross in my books, in December, 1845. The expenditures of the Philadelphia end for those years came in at the same time, and were entered in ray books in the same way; for the balance of the time, I always received the account for expenditures at the Philadelphia end, monthly, from Mr. Gat.zmer, prior to 1840, and from A. S. Neil- son, treasurer, after 1842; this is as near as I can recollect. Mr. A. S. Neilson received them from Mr. Gatzmer, I believe. The ex¬ penses for the New York end were the expenses of running the boats, the pay roll of the men, chandlery account, fuel account, repairs of the boats, summer and winter, and, generally, the running account; the charter of other extra boats was also included in this account. I paid these expenses as they occurred, with moneys fur¬ nished by the treasurer of the' New Brunswick company, and I entered them as they occurred.. The treasurer also occasionally defrayed the, expenses at New Brunswick, which, with the vouch¬ ers, were returned to me, and entered in my books; I speak to the best of my recollection at present. I received from Mr. Gatzmer a detailed account of the expenses at the Philadelphia end, and entered it in detail in my books, under its proper head; I do not now speak of the years 1840, 1841, and 1842. 1 believe that the New Brunswick company did this business on behalf of the Cam¬ den and Amboy Railroad Company, but I do not speak of my own knowledge; I always knew that the steamboats belonged to the Camden and Amboy Railroad Company. A settlement has taken place with the Camden and Amboy Railroad Company and the New Brunswick company in regard to this business; this settlement took place in the year 1846; at that settlement certain general expenses were charged to the account of the steam towing, in addition to lol the current expenses of the running of the boats, which had been charged as they occurred; these general expenses to which I al¬ lude were fairly chargeable to the towing account; they were the expenses which had been accruing for several years back, and had been defrayed by the New Brunswick company. This settlement stands in my journal under date of October 31st, 1846, and the general expenses to which 1 allude are there specified. The gross, amount of these additional e.xpenditures is $58,814.81. The first item of these additional expenditures is $10,926.77 for general ex¬ penses. The expenses are composed of half of the salaries of the superintendents, agents, book keepers, and clerks of the New Brunswick company that attended to the steam towing business, in connection with other business of that company, for the period of ten years, from the year 1836 to the year 1845, inclusive; it in¬ cludes, also, one half of the office furniture, stationery, fuel, &c., for the same period, the expenditures never having been charged to the steam, towing account previously. I think, in my judgment, that one half of these expenses were fairly chargeable to tlie steam towing account. The next item of those additional expenditures is $2874.19, for rent of bulkheads, wharves, store house, &c.; they were situated in New York; they were entirely rented for the use of the steam towing, and are for the years 1836, 1837, 1838, and 1839. The above sum is a balance of the account of those rents, after deducting a credit account for wharfage and rent of stoves received. The debtor side of this account is $9834.72, and tlie cre¬ dit side is $6960.53, leaving the above balance of $2874.19, which was paid by the New Brunswick company for the steam towing account. The next item of this additional account is $182-5.62, and is for steamboat charters in the year 1841. I think that entry in the book of 1845, on the book, is wrong; this is for the charter of steamboats on the Netv York end, for the year 1841, for extra work, which had not been before charged to the expense account of steam towing business, and which was paid by the New Bruns¬ wick company on tliat account. It does not now occur to my mind why it was not included in the charge for. current expenses. Tlie next item of this additional account is $75, for one half of office rent for the year 1843; this was the New York office. The reason why it appears by itself in this way is, I think, that I had a- head for rent, general expenses for that year, and it had not been brought in before, not being included in the general expense ac¬ count before explained. The next item is $1256.64, being for half 102 of the salaries of Mr. Gatzraer, and his cleric, Mr. Salford, for the years 1843, 1844, and 1845, for attending to the business of the New Brunswick company, including the steam towing business, aiid paid by that company. The next two items are, 8323.99 for one half of the general office expenses for January, February, March, and April, 1846, and 8216.66 for one half of she salaries and expenses of Mr. Gatzmer and AVm. A. MoiTell, for the same four months, for their service rendered to the New Brunswick company, in the steam towing and other business thereof, as be- fore. The next item of the said additional account is §23,315.92, and is for repairs to the steamboats, at both ends, from the 1st of January, 1846, to the 1st of May of the same year, embracing, also, the payrolls and current e.xpenditures thereof, and wood, &c., paid by the New Brunswick company, the 1st of May of that year being the time of their termination of the conducting the tow¬ ing business, since which time it has been conducted by the Cam¬ den and Amboy Railroad Company, on its own account. The next item is §500, for wharfage in 1842, in New York, paid by A. S. Neilson, the treasurer of the New Brunswick company, on the steam towing account. The next is SoOO, paid under the same cir¬ cumstances and for the same cause. The next item is $17,000, put down- as the charter of steamboat Hornet, from August, 1841, to August, 1846. She was procured, I believe, by the New Bruns¬ wick company for the steam towing business, and she was turned over to the Camden and Amboy Railroad Company when the New Brunswick company gave up the business of steam towing. In this I may be mistaken; she was pretty well used up when the New Brunswick company gave up the charge of the steam towing busi¬ ness; she came round to Philadelphia, and 1 lost the run of her: she was the property of the New Brunswick company while they were using her in the steam towing business, and they charged the steam totving business this amount for her charter while thus used. Mr. Gatzmer and myself went over this account, and he and my¬ self thought, and I now think, that they were rightfully and pro¬ perly charged to the steam towing business. The account was set¬ tled on this basis; there was a balance found due on the whole ac¬ count, at that time, to the Camden and Amboy Railroad Company of 15435.94, and that balance was paid to the said Camden and Amboy Railroad Company. In this settlement with that company, they were credited with all the receipts derived from the steam towing, and charged with all the expenses properly chargeable to 103 that account, being the expenditures which I have before mention¬ ed. The New Brunswick company did not, in this settlement, charge any commissions for conducting and managing that busi¬ ness. The whole amount of money paid by the New Brunswick company to the Camden and Amboy Railroad Company on the towing business, for the time the former had it in charge, was S'o4,- 729.61, this being the amount accrued in that business over and above the expenditures. The New Brunswick Steamboat and Canal Transportation Com¬ pany paid the steam towing account for towing all their own boats under my charge or agency, which were the coal barges. They also paid for the towuig of their freight barges. Some of their vessels were sail vessels and propellers, and did not require towing. The propellers sometimes towed the other barges or boats of the com¬ pany. The prices charged for towing the full coal barges of the New Brunswick company were twenty-live dollars a barge on the New York end, and twelve dollars and a half for the Philadelphia end, all the time 1 had the charge of them, as well as my memory serves me. The period of time in which I attended to the coal barges was from 1S40, inclusive, till the time they were sold, I think in 1846; the prices charged were the same hack to the year 1837. When my knowledge of the business commenced, nothing was charged for towing the empty barges; these barges carried from one hundred and fifty to two hundred tons. I cannot speak with certainty of tho charges for towing the freight barges. I do not know what the charges were for other vessels, but I believe they were generally charged by the ton. There has not been any towing done for the New Brunswick Steamboat and Canal Trans¬ portation Company that has not been accounted for, that I have any knowledge of; neither has any been done for any other com¬ pany or person, that has not been charged for, and paid, to my knowledge. Bobdentowx, Tuesday morning, October 9, 1S49. William T. Anderson’s examination resumed.—Since the 1st of May, 1846, the steam towing account has been kept by Ira Bliss, Robert J. White acting as clerk; since that time the business has been conducted by the Camden and Amboy Railroad Company themselves. Mr. White has performed all the labour of keeping the books of account since that time, so far as the writing is con¬ cerned, except for a few days, while he was on a visit to Virginia. 104 One clerk can perform all the labour requiiecl in the writing. The railroad company have had an oflBce in New York during all the ’.time that I have been in the employ of the New Brunswick com- ,pany. There is a great deal to do in that steam towing; it would have required more force in the railroad office, if they had done the business themselves. They have had to employ an additional book keeper and, two,out-door clerks, or agents, to attend to the business since they have taken the business into their own hands, Robert .1. White, Francis H. Kester, and Mr. Buckbee. By the employment of such an,additional force, the company could have managed, the business themselves by the establishment of another office; they would have required another office, having to deal :tvith a class of people that would have given constant interruption to the other business. I think no salaries of clerks or superintend¬ ents were charged to the towing account, until the general settle¬ ment in 1846. I think the management of the steam towing re- ■ quired half of the labour and attention of my office; that is my opinion. The statement of the steam towing account for settlement was made by Mr. Gatzmer and myself, in October, 1846; ray idea is that it was what we thought was right. I have no recollection that any previous understanding that the settlement should be made on this basis, was brought to my knowledge at the time, or that I ever knew any such previous understanding. After being made out, it was submitted by us to Mr. Edwin A. Stevens, and approved of by him. Whenever a contract was made for the charter of a vessel, I don’t know that I can say who made it; but it always did meet the approbation ofTra Bliss, at least I know we always got his advice about it. The steamboat Hornet, as far as I know, was always used for steam towing wliilo we had her; I am quite sure she was never used for any thing olso. In putting down the amount for her charter in the final settlement, I took the advice of Mr. Gatzmer. I don’t know whether any instructions were given to Mr. Gatzmer on the subject or not, I received none myself. The current e.vperises and repairs of the steamer Hornet were paid by the New Brunswick company, and charged to the steam towing account, the karae as the other boats employed. The steam tow¬ boats did not earn any thing during that time but what was placed to the credit of the steam towing account, so far as my knowledge extends. The towage of the^ freight barges of the Merchants and Swiftsure lipes have been as follows, as I find upon reference to my books: first for the barges of the Merchants line, from 1836.to ids 1839, inclusive, were $2o on the Raritan, and $25 on the Delaware, making $50; from 1840 to 1842, inclusive, $33.33 on the Raritan, and $16.66 on the Delaware,’making $50; from 1843 to the time I left the steam towing, the 1st day of May, 1846, on the Raritan $2-5, and on the Delaware $16.66, making $41.66. For the barges of the Swiftsure line on the Raritan, from 1840 to 1842, inclusive, $22.22, and on the Delaware $11.11, and continued at the same price up to 1846. Light barges of the Merchants line, from 1836 to 1839, paid $12.50 on each river, making $25 on both; after that, from 1840 to 1841, .$8.33 on each river; from 1842 to 1846, $5.55 on each river. Light barges of the Swiftsure line paid, from 1842 to 1st of May, 1846, 85.55 altogether, on both rivers. The Merchants and Swiftsure lines paid these rates on their freight barges, and the amount was regularly credited to the steam towing account. These rates constituted a fair charge for the tow¬ ing of those barges, in my opinion. The.above rates were for barges carrying general merchandise. The rates for towing coal barges of the New Brunswick company, as I mentioned before, were $25 on each river. I believe that these rates were equal to the rates charged for towing other coal barges; I judge so, because these rates are fair rates. WILLIAM T. ANDERSON. Sworn and subscribed, the 9th day of October, 1849, before the commissioners. A.4RON RoDERTSON, C/i’jt. Borden'town, Tliursday, October 11, 1849. William H. .Gatzimr, being duly sworn, deposeth and saith—I am in the service of the Camden and Amboy Railroad Company, as an agent. I commenced with the company in 1833, at first as a clerk on the steamboat between New York and Amboy. In 1835 I was transferred to the passenger office in Philadelphia, where I have been ever since. I was clerk in that office until 1840, while Wm: J. Watson was the agent. In 1S40 I became the agent of the companies in Philadelphia, and have filled that situation ever .since. In that capacity I have the superintendence of the steam¬ boats, and whatever relates to the passenger business in general. The returns of the transportation of merchandise over the railroad are made to me, and I attend to such other matters as the execu¬ tive committee impose upon me. I have attended to the towing department at the Philadelphia 106 end. I pay the dividends on the joint stock of the companies, and aiso the interest on the loans payable in the United States. These matters I have generally attended to since I became the agent. I also act as the agent of the companies, with respect to the feri y stock owned by them, and the stock of the Philadelphia and Tren¬ ton Railroad Company owned by them; also with respect to some coal lands in Pennsylvania; that is to say, 1 have charge of the accounts relative to their coal lands. Since shortly after the com¬ mencement of the steam towing business, I have had the manage¬ ment of it, at the Philadelphia end; in the fore part of it, I acted on behalf of the New Brunswick Steamboat and Canal Transpor¬ tation Company, down to the year 1846, when it changed hands; and since that time I have had the management of it, on behalf of the joint Companies, The companies then managed the towing until September, 1S48, when an association in the towing business was formed with Mr. G. W. Aspinwall, under which association the. towing business is still carried on. The association is represented by him for his boats, and by me for the boats of the joint compa¬ nies. While I was the agent of the New Brunswick company in the towing business, I had under me, at Philadelphia, in reference thereto, Richard H. Smith, whose name has since been changed to Richard S. Trowbridge, in the capacity of clerk; he at first collected the dues for steam towing from the boatmen. He collected them one year; after that the collections were made by Peter V. De- graw, at Princeton, and returned to me. Mr. Degravv continued to do so until 1846. I had also J. W. Pennington employed at Fair- mount, the collector of the Schuylkill Navigation Company, to collect the towage due from such boats as passed through the Schuylkill canal to the Delaware and Raritan canal. This he at¬ tended to for one season only, while the New Brunswick company had charge of the towing business. Mr. Pennington is now em¬ ployed for tiro same purpose by the present association. I had also a Mj’- Salford employed, as a. clerk, and also Wm. A. Morrell. If a boat was towed from the Philadelphia end to the canal, the charge for towage was collected by some of the persons under my direction, and paid over to me. The whole charge for towage clear through to New York, was all paid at the same time, and returned, as above mentioned, to me. , The towage of boats from New York to Philadelphia was col¬ lected, I think, in this way, the towage in the Raritan river col¬ lected in-New York, and the towage in tho Delaware in Philadel¬ phia. The captains of the tow boats collect the towage charges for 107 transient vessels that pay as they go, those on the Philadelphia end making returns to me, and those at the New York end to Mr. An¬ derson, as long as the New Brunswick company managed the busi¬ ness. The great proportion of the boats towed both ways were coal boats, and furnished with permits at Philadelphia, or by the collector at Princeton; and their towage was paid at the Philadel¬ phia end, for the towage both ways. Much the largest part of the money received for towing was collected at the Philadelphia end. Boats belonging to regular lines generally paid their towage monthly;- these monthly payments were mostly made to me. The Camden and Amboy Railroad Company furnished the tow boats; they principally owned them, some they chartered. The New' Brunswick company attended to this business, on behalf of the Camden and Amboy Railroad Company, until the 1st of May, 1846. The New Brunswick company paid, or gave the railroad com¬ pany credit for the towage of its owm boats; It paid at a fair rate, according to the rates paid by other boats. I assisted Mr. Ander¬ son in making up the account for the final settlement of tlie towing accounts between the New Brunswick company and the joint com¬ panies in 1846, to be found in the journal for steam towing for 1846, page 29, and also to be found under the date of October 31st, 1846, in the day book of the New' Brunswick company, kept by Mr. Anderson. Tiie account, as found in those books, being shown to witness, he says, this is the account I mean, and which I assisted to make up. The first part of this account e.vhibits the net balances of the proceeds of towing for each year, from 1835 to 1846, after deducting the expenses of the running of the steamboats. This includes coal, w'ood, chartering of steam boats, and all other e.xpenses connected with, or incidental to the running of the boats. It includes, also, the repairs of the boats, summer and ivinter. Some additional expenditures, by the Now Brunswick company, were introduced in the final settlement of the account, which had not previously been deducted, in making up the annual balances, (exclusive of current expenses and repairs connected with tho boats) up to May, 1846. These additional expenditures wore as follows: $10,926.77 is for the one half of the general expenses from 1836 to 1845, inclusive, tho nature of which Mr. Anderson can specify better than I can. I was satisfied, at the time, that this moiety of $10,926.77 of general expenses was properly chargeable to the steam towing business. The next item is rent account, and this, with several other items, amounting in all to $24,572.12, I considered, at the time, as also properly chargeable to steam tow¬ ing. One of these items is ^17,000 for charter of steamboat Hor¬ net, from August, 1841, to August, 1846. This boat was owned and furnished by the New Brunswick company, and for the char¬ ter of which they charged the steam towing account for the above period of tiihe. I think it was about a fair price for her charter for that time. I have no distinct recollection how this precise amount for the.charter of this boat was charged. I recollect Mr. Anderson and I had consultations witli Ira Bliss and E. A. Stevens in refer¬ ence to the account. We have rather more assistance now, in con¬ ducting the steatn towing, than we had previous to May, 1846. Captain Kaymond, at Bordentowii, gives attention to it at Borden- town. He collects the towage not collected by the officer at Fair- mount on vessels that do not pay monthly, and keeps a list of all the vessels that pass his lock that do pay monthly. I still collect the towage from the Merchants and Swiftsure lines. Mr. Pranci.s Kester, at New Brunswick, performs the same duties there, in re¬ ference to towage, that Captain Raymond does at Bordentown. I have no knowledge of any understanding with the New Bruns¬ wick company, as to the terms upon which they would undertake the management of the steam towing business; had with them pre¬ vious to their undertaking it. I do not know that I can state any reason why the charge or management of the steam towing was committed to the New Brunswick company; I so found it when I came into the agency in Philadelphia. I think the business was managed quite as economically as if it had been managed at tlie proper office' of the railroad company in New York; I mean it has been managed with as little cost to the Camden and Amboy com¬ pany as if they had managed it themselves. They would have been obliged to have had more force in their offices at New York, if they had conducted it themselves. It would appear, by the settle¬ ment account, that the New Brunswick company, on account of their management of the business, had the use of considerable sums of money, arising from the towing business, without paying any interest for them. Taking the account as stated, and calculat¬ ing interest on balances on both sides for each year at six per cent., there would be a balance of interest in favour of the towing ac¬ count of about 817,000. . No interest was ever paid on those ba¬ lances by the New Brunswick company, to my knowledge. I have no knowledge of any arrangement by which those balances were suf¬ fered to remain in the hands of the New Brunswick company; tliey remained there on deposit, the account being unsettled. I find, by the account, that in 1S40 a balance of about S4000 of the steam towing was in my hands, and in 1S41 a balance of about $13,000 was in my hands from the same source, and in 1842 a ba¬ lance of about $20,000. These moneys stood to my credit in my general cash account in the bank, in the same manner as any moneys of the joint companies in ray hands. The above named balances in my hands were subject to the draft of the treasurer of the New Brunswick company, and I think it very probable that part of tlicm were paid to tlio said treasurer, or upon his draft, prior to the settlement in 1846. The balance.s on steam towing due from the New Brunswick company I always con.sidered subject to be drawn for at any time by the joint compa- panies, as far as I understand it. In making up the settlement ac¬ count, I considered that the e.xpenses charged in it to steam towing were all the cliarges and e.'tpenses properly chargeable to it. No¬ thing was said about compensation to the New Brunswick compa¬ ny, and no allowance was made in the account to the New Bruns¬ wick company, as, or for compensation to tliem, for the manage¬ ment of the steam towing business. I rather think that the change in tlie management of tlie steam towing, in 1816, was made at the instance of the joint companies; that they thought they had belter attend to it themselves. Monthly settlements have been made, since September 1st, 1S4S, with Mr. Aspinwall, for tlic steam towing ' business. 1 do not know of any services rendered by tlie Neiv Brunswick company in the steam towing bu.siness, other tiiiin li:e services of the clerks and suporimeiulents, who wore allowed com¬ pensation therefor in the account, as linally settled. A. S. Neilson is treasurer of tho New Brun.swiok Sleambnat and Canal Transportation Company, and 1 think attends to the business of tlie company at Now Brunswick. Mr. Anderson is also employed, and does the business in New York. We advised with Mr. Bliss, as tho agent in New York of the Camden and Am¬ boy Railroad Company, in settling tho towing account. Sir. .Stevems was, I suppose, concerned in both companies. Ho was superin¬ tendent and treasurer of the railroad company, and also a dlreclor aiid superintendent of the New Brunswick company, as I under¬ stand. Nothing was said, at the time of the stating of the accounts, of the benefit or advantage enjoyed by the New Brunswick com¬ pany from the balances which had remained in tlieir hands from the towing business. I cannot say whether the New Brunswick no company derived any advantage from the balances in their hands; as to the balances which I have mentioned in my hands, I can say they, did not. I suppose the New Brunswick company could have derived some benefit from the .balances, if they had chosen to use them. I should, at any time, have paid any funds in my hands be¬ longing to the New Brunswick company in accordance with orders from Mr. E. A. Stevens, from his being the superintendent of the company, and I would have done the same thing, as to any funds belo ng to the railroad company, for the same reasons. One in¬ ducement for forming the connection in the towing business with Mr. Aspinwall was, that the joint companies had hardly boats enough for the business, and Mr. Aspinwall was engaged in the same, business, and it was considered advisable to form the connec¬ tion, so as to save money to both parties, by not running more boats than were necessary to do the business. The steam towing business was never looked to, by the joint companies, as a source of profit, it was established as necessary to render the communication with the canal complete. The Camden and Amboy Railroad, Company never owned the steamboat Hor¬ net; she was originally bought by the Camden and Philadelphia Steam Ferry Company, and they sold her to the New Brunswick company, in 1841, and they owned her until she was broken up. She was pretty much worn out when she was drawn off from the towing business, in 184G. What her real value was I cannot say, as I am not sufficiently well acquainted with the value of machine¬ ry. ,1,cannot state now .with absolute certainty the time when she quit running. The passenger returns are made to me daily, in regard to the lines running- out from Philadelphia oh the Camden and Amboy railroad. The settlements opbi-anch roads connected with it, to wit, the Burlington and Mount Holly railroad, the Philadelphia and Trenton Railroad Company, and the New Jersey Railroad and Transportation Company, are made monthly. The books which I have sent here, on the call of the commissioners, exhibit the ac¬ counts of the Camden and Amboy Railroad Company. ' Bordentown, Friday, October 12, 1849. William H. Gatzmcr resumed.—^Upon reflection, I am now un¬ der the impression that the charter of the steamboat Hornet was made seventeen thousand dollars, for the reason that that was the amount paid for her by the New Brunswick company. She was used up in tlie towing sendee, and it was considered fair to both companies that that amount should he fixed as the charter for the time she was used in the towing business; independent of this rea¬ son, 1 consider it a moderate charter. I keep a full daily account of the disbursements and receipts of the Camden and Amboy Kailroad Company, at Philadelphia. The clerk of each line returns, daily, a way bill showing the number of passengers carried, where from and where to, and the amount of money received for them; this hill is examined by the ticket clerk, to see if all the tickets used are accounted for; then the clerk who keeps the abstract book examines, to see that the proper fares are charged, and that the amounts are correctly extended and added up; he then enters the number of passengers and the amounts on the abstract book, under their appropriate heads, and the clerk who has charge of the day hook enters the amount in the day book. The results of the settlements witli the Philadelphia and Trenton Rail¬ road Company, the New Jersey Railroad and Transportation Company, and the Burlington and Mount Holly Railroad Company are entered on the day book after settlement, generally monthly. The returns from the railroad transportation agents, Messrs. Free¬ man, Decker, and Fish, are entered monthly, and all other receipts of the company coming into my hands are entered in the daybook when received, or as nearly so as practicable. The disbursements are entered, under their appropriate heads, in the day book daily. The bills or vouchers are carefully examined before they are en¬ tered by the book keeper, to see that they are free from errors. The amount of receipts and disbursements are carried from the day book to the leger, and, at the close of each month, abstracts of the receipts and disbursements are made out and fortvarded to the agent at Bordentown. These are the abstracts which the commis¬ sioners have had before them, and the books to which I have re¬ ferred. The abstract books, day books, and Icgers are the books that are here at this time. Capt. Richard Shippen is the agent at Bordentown, to which 1 referred. The bankable funds received by me are generally placed to my credit in bank, the uncurrent funds received are mostly paid out in disbursements. I deposit from time to time, to the credit of the treasurer of the Camden and Amboy Railroad Company in bank, keeping sufficient in my hands to meet the claim's on the Philadelphia office. 1 make out an ac¬ count current with the treasurer of the Camden and Amboy Rail¬ road Company monthly, crediting him with the receipts, and charg- ing him with the payments made for the company; this account is forwarded monthly, to the agent at Bbrdentown aforesaid. The following is the mode of conducting the business of the passenger lines: tickets are furnished from my oiBce, embracing the different stations on the route, to the ticket clerk at the station, or on board the.steamboat which starts-with the line. The ticket clerk in my office keeps a memorandum of the number of tickets of different kinds that are thus issued. The ticket clerk on the line furnishes each passenger with a ticket, on the payment of his passage, and enters the name and the amount, where from and where to, and the amouut of passage money, on a way bill, of which he keeps a duplicate, so far as regards the lines in connection with the New Jersey Railroad and Transportation Company, but no duplicate for the lines on the Camden and Amboy railroad, by Amboy, nor for the lines to Mount Holly.. The tickets sold for Mount Holly are divided into two compartments, one of which is cut off by our con¬ ductor and the other taken up by the conductor of the Mount Holly and Burlington railroad, and the same process is adopted on the return. These compartments are evidence to each company, re¬ spectively, of' the amount of travel on the joint lines. The ticket agent on the line, after furnishing his-passengers with tickets, and making up his way bills,, delivers one of the duplicates to the con¬ ductor on the lines connected with the New Jersey Railroad and Transportation Company, and on the other lines delivers to the . conductor a card stating the number of passengers to get out at each station; and he then returns with the boat to Philadelphia, and, before delivering his way bill into my office, he receives from the conductor of the return train, and enters on his way bill, the said conductor’s returns of way fare collected by him after leaving Amboy. He then returns the way bill, and the amount of money which it calls for, into'my office, and also the balance of tickets not disposed of; and the account of his day’s transaction is then ex¬ amined by the ticket clerk in my office, as before stated. The num¬ ber of tickets of each kind issued to him is charged to him, for which he, must account, either in money or by return of tickets. The amount of money received by the ticket clerk on, the line from the return conductor is exhibited by a way bill, kept by the con¬ ductor, and signed by him, which he delivers to the said ticket clerk, and which the latter returns with his own way bill, as his voucher for the amount , of money thus received. The duties of the conductors are as follows: on the lines in connection with the 113 New Jersey railroad, on receinng the duplicate way bill from the ticket clerk, he takes charge of the train, collects the passage money of any passengers that lake the cars after leaving the boat who have not procured tickets from the ivay station agents, and keeps a way bill, on which he enters such passengers, their points of entry and destination, and the amount received from each; he also collects the tickets of those getting out at the way stations or at New Brunswick, except at Princeton, where the tickets are collected by the stationary agent. He hands over the duplicate way bill deli¬ vered to him by the ticket clerk to the conductor on the New Jer¬ sey railroad. Before delivering it over, however, he enters upon it such passengers as enter the line by the way destined to places beyond New Brunswick, so as to show to the New Jersey Railroad Company the amount of money received by tbe Camden and Am¬ boy Railroad Company on this end of the line; which is also de¬ monstrated by the tickets in the hands of the passengers, which are taken up by the conductor of tbe New Jersey Railroad Com¬ pany. On his return, the conductor makes another way bill, on which he enters the passengers who enter the cars on the return trip; his two way bills he returns to the ticket clerk on the line, and he enters these bills on the way bill of whicb he kept the du¬ plicate, before returning it to my office, as before slated. The conductor’s duties on the line running to Amboy, after re¬ ceiving the memorandum, before mentioned, from the ticket clerk, are to pass through the cars, and see that every passenger has a ticket, supplying those that may not have, and taking the fares of those entering the cars by the way, of which he kee))s a way bill. This way bill he passes over to the ticket clerk on board of the boat at Amboy, and hands him the money. On his return, he collects fare in a similar manner, keeping a way bill, and returns the satae to the ticket cleric at the Philadeljihia end, who enters the same on the way bill, as before mentioned. The throngh tickets on the Am¬ boy route are taken up at Amboy by the clerk of the steamboat. The tickets which the conductor on the Amboy route takes up from the passengers he turns over to the ticket clerk at the other end of the line, who seals them up, together with the through tickets taken up by himself at Amboy, and sends them back to Philadelphia, directed to me. The same thing is done by the agent of the New Jersey road, on the upper route; he seals up the tickets and sends them to my office. The tickets taken up by the conductor on the upper route from persons not passing beyond New 114 Brunswick, he returns to ■ my^ office. There is no check upon the conductors, as to way travel between intermediate stations on either route, except as to passengers getting out at Princeton, where they have to pass through the gate, and deliver their tickets. We have adopted an arrangement, however, for detecting any material ab¬ straction which might happen in this way. A set of tickets, embracing an assortment for the different stations, is furnished to each conductor, from my office, in sufficient number to meet any probable exigency. Such of these tickets as are given , out by him to passengers going beyond the terminus of the road are taken up hy other persons, as before mentioned, which operates as a check on the conductor; but tickets between intermediate sta¬ tions are usually taken up by himself, and his own account is relied on. The business of the lines running from New York to Phila¬ delphia is managed in a similar way, in all material respects, to the mode herein before described for the business from Philadel-. phia to New York. The original way bills of the business, to which I have before alluded, are here now before the commissioners, also the vouchers for the expenditures. The books of my office, which are before the commissioners, contain a true account of all the business of the Camden and Amboy Railroad Company that passes through my office, and under my direction and supervision as agent. They are true books. There are no other secret books which show any dif¬ ferent state of accounts from these. There is no two sets of hooks. Bokdentown, Thursday morning, October IS, 1849. William H. Gatmer resumed.—On my examination, on the 11th inst., I stated that Mr. Pennington was employed to collect towage from such boats as passed the Schuylkill canal to the Delaware and Raritan canal, while the New Brunswick company had charge of the towing. By reference to my memorandum, I find that he was employed, in 1843, to furnish certificates of weight of the coal boats, and an account of the return freight that passed through the Delaware and Raritan canal and up the Schuylkill canal; in 1847, he was employed to collect the towage of boats, at Fairmount, des-. tined through the Delaware and Raritan canal, when the Camd en and Amboy Railroad Company had charge of the towing. I stated that, in 1840, 1841, and 1842, there were balances in my hands belonging to' the steam towing account, and that it was quite likely that part of these amounts were paid over to the treasurer of the New 115 Brunswick Canal and Transportation Company prior to 1846. By- referring to the books, I find that payments were made during those years in which the balances accrued to the New Brunswick company, and that the balances in my hands, as regards the years 1840,184'1, and 1842, were paid over, in 1843, to the New Bruns¬ wick company. I stated, on the 12th, that the ticket'clerk on the line on the other end sealed up tlie tickets handed to him by the conductor, collected on the way, and the through tickets collected by himself at Amboy, and sent them back to me; 1 should have said that he turned them over to the oilice of the agent in New York, Ira Bliss, where they were examined by the ticket clerk of that office, sealed up by him, and sent back to ray office. The witness’ attention being now called to a credit on his book of $27,851.67, received from the steam towing account, from which is made a deduction of 87227.94, expended on account of steamer Rainbow, whilst running to Wilmington and Cape May, in 1842 and 1843, the balance, 820,623.73, being carried into the general abstract book, he was asked to explain this transaction. He says, an opposition boat was placed upon the route up the Delaware river by the propi-ietor of a steamboat lino running between Phi¬ ladelphia and Wilmington, to the injury of the business of the Camden and Amboy Railroad Company. According to my inform¬ ation, the proprietor of the Rainbow, a boat of great speed, agreed to put her on the route between Philadelphia and Wilmington, as an opposition boat, to induce the proprietor of the Wilmington line to withdraw his opposition boat running up the river; provided that if the business she might do did not meet the expenses, that the loss would be made up to him by the Camden and Amboy Railroad Company. She ran, in 1842 and 1843, down the river to Wilmington, and also made some trips to Cape May, and dnring that time incurred a loss of $9922,76. Part of this amount had been advanced, and charged by the agent of the Camden and Am¬ boy Railroad Company in New York, leaving at the close of the business $7227.94 to be paid. This being a loss occasioned by the running of this steamboat, and having no particular head for en¬ tries of that kind, it was thought proper to deduct the amount from the receipts of steamboats, and it was therefore deducted from the returns of the steam tow boats in 1843, and entered at large on the day book, on the 31st of December of that year. Witness’ at¬ tention being called to an entry on his books of $200, under date of June 30th, 1848, paid to Louis P. Smith, and charged to inci- , 116 dental account, without stating for what paid, says, this sum was paid on the draft of John R. Thomson in favour of Louis P. Smith, cashier of Princeton bank, on me, as I afterwards understood. It was for advances tnade by Mr. Thomson to other persons for ser¬ vices rendered the company. I never understood what those ser¬ vices were,'or who the persons were, at least I have no recollection of it now. It was also authorized by E. A; Stevens, Witness being desired to explain the increase of legal expenses in 1848, says, in the year 1848 there were several lawsuits on trial in Philadelphia and New Jersey, or decided, involving important principles. The suit of Peter Briggs against the companies, for the penalty of alleged overcharge in freight, was decided in the Janu¬ ary term of the year 1848, by the supreme court of New Jersey, and .was carried up to the court of errors and appeals. The case of .Wilson against the Camden and Amboy Railroad Company, for alleged infringement of patent right in the use of the spark arrest-' er, tried in the circuit court of the United States in Philadelphia; Bardulf against the company, for the recovery of, about two thou¬ sand. five franc pieces, alleged to have been lost on his passage from New York to Philadelphia; and there may have been some other minor cases, in consequence of the decision of the supreme court of New Jersey against the companies in Briggs’ case. Other suits were threatened, and some commenced, and lawyers were retained to attend to them. Opinions were also obtained from seve¬ ral legal gentlemen, as to the construction of that section of the charter of the Camden and Amboy Railroad Company which re¬ lates to the rate of charges for the rate of freight on the railroad. In relatioii to an entry on the day bpok, of the date of June 22d, 1848,'as for money paid to Alexander Wurts, esq., that money was drawn as a retaining fee for him, and charged on the book as if paid; but he having declined to receive it, the entry was afterwards corrected, and his name was erased from the books. The reason why the general expendituress of the railroad com¬ pany are larger than they were in former years in proportion to the income, from the limited attention which I have been able to give to, it since I-was last examined, is as follows: commencing, say in 1844, occasioned by extraneous expenses beyond the ordi¬ nary business of the company, disbursements usually chargeable to capital, such as. enlarging, building, and purchasing steamboats, building and purchasing new cars, purchasing new locomotives, purchasing and relaying new iron rails, building new car houses, 117 new shops, new transportation houses, dwellings, and station houses, new wharves, wood sheds, &c., amounting in the year 1844, to about ®87,000, in 1845, to about $197,000, in 1846, about $164,000, in 1847, about $155,000. In the early part of the business, the road and machinery were new, and required but little repair, and a less number of lines were then run, in proportion to the travel, than now, one train carrying as many passengers as we now run two trains, to accommodate. An increase of the number of lines beyond what can do the business increases the expenses, but does not in¬ crease the receipts in proportion. In the year 1835, two regular lines were run only; the receipts were about $679,000, the expenses $317,000; in 1848, when five lines were run, the receipts were about 81,152,000, and the expenses about $663,000; the net re¬ ceipts were much greater in 1835, in proportion, than in 1848; the same proportion would give, for 1848, receipts $1,419,000; but were we to increase the expenses according to the increase of lines, the expenses in 1848 would amount to about $792,000, which is about $129,000 more than the actual expenses of 1848. The free ticket list is made out by the executive committee, a copy of which is furnished to the different officers and to the cap¬ tains of the steamboats, clerks of the lines, and the conductors; it is deposited with them for their guide, and they issue to the free list passenger, when he applies, a free ticket to the place of desti¬ nation, which is taken up by the receiver of tickets in the same way other tickets are collected. If an officer issues a free ticket to a person not on the free list, or upon a written order of one of the directors, or of the agents who are authorized to issue free orders, he is held personally responsible for the amount of passage money, if not approved of by the executive committee. I have a record in my office of all persons, or nearly so, who are entitled to, or hold free tickets. The persons entitled to free tickets are the directors and agents of the company, directors and engineers of neighbour¬ ing railroad companies, captains of steamboats, stage proprietors, hotel keepers, gentlemen of the press, legal gentlemen, counsel of the company, relatives and friends of some of the prominent di¬ rectors and stockholders, more particularly described in the state directors’ report, made for the year 1847, with some additions since, and some diminution by deaths, &c. As to any other persons pass¬ ing free on the road, not included in this description, passing free on the road or in the boats of the company, all I have to say is, that our instructions to our agents and conductors are positive, not 118 to permit any persons to pass without a ticket, with the exception of the workmen on the road, who are permitted to pass without tickets. I am not aware of the existence of any such practice as persons passing without tickets called “dead-heads,” or otherwise not.'ineluded in the description I have given of free passengers. Those persons having free tickets are not returned to the state for transit duty. As tp the receipts for transportation on the railroad, I take them from the monthly statements which are made before the executive committee by transportation agents, and enter the amount, both of tonnage and receipts, on my book and in the monthly abstract which I furnish to the agent at Bordentown. The receipts to 1st April, 1846, were $7.64 per ton on the through freight, and half that amount on the way freight, except for coarse articles and what is called winter freight, which was at a le.ss rate. Up to the date above mentioned, the business was done by the New Brunswick Steamboat and Canal Transportation Company, under the name of the Union line, which company paid the Camden and Amboy Railroad Company the above rates. The Camden and Amboy Rail¬ road Company found the cars and machinery for transportation, and also steamboats.. The settlements for the transportation were made between the agents of the New Brunswick company and the exe¬ cutive committee of the joint companies, usually at Bordentown, monthly; and the accounts for each month were carried into my books and abstract for the following month. After the monthly set¬ tlements were made, the statement was rendered to me, as before All the receipts, thus rendered to me, were always entered on my books, and credited to the Camden and Amboy Railroad Company; in like manner,' all the receipts for the transportation of passengers were always duly entered on my books, and credited to the company ; both were returned by me in the monthly abstracts which 1 made, and returned to the agent at Bordentown. All the receipts of the Camden and Amboy Railroad Company, so far as my knowledge extends, have been entered on the books of the company, and carried to their credit. Some extraneous re¬ ceipts are entered directly on the books of the treasurer, and do not pass through my books. Since April 1st, 1846, the trans¬ portation on the railroad'has been conducted by the Camden and Amboy Railroad Company; the reason for the change, as I un¬ derstood, was that the New Brunswick company refused to do 119 tlie business any longer. The receipts have been returned to ino since that time, in the same manner they vimre before. The indivi¬ duals who superintend the business on the part of the railroad com¬ pany are Wra. S. Freeman, Philadelphia, and Alfred Decker, New York, and Benjamin Fish, of Trenton; these agents make the dis¬ bursements incident to the transportation on the railroad. Those disbursements are not entered on my books nor on my monthly abstracts, nor do they appear in the general abstract of disburse¬ ments in the general abstract book kept at Boi'dentown; the net receipts are returned to me, in the manner above stated, and en¬ tered on my books, and also in the monthly abstracts which I make, and from thence into the general abstract book. The whole net re¬ ceipts were paid to me monthly. Of these net receipts, an amount equal, according to the rates above specified, to what the railroad company had been accustomed to receive from the New Bruns- ivick company, was paid over monthly to the treasurer, and cre¬ dited to the transportation account; the balance was retained in my hands, and carried to the credit side of an account opened by me, called an insurance account. At the close of 1S47, the balance of this account, amounting to §33,021.39, was paid over to the treasurer, and the account closed; since which time the actual net receipts fi’om transportation on the railroad are entered by me, monthly, in my books, under the head of transportation, and re¬ turned in my monthly abstracts to the agent at Bordentown. Since the decision of the supreme court in the case of Bi'iggs, or shortly afterwards, the rates of freight have been lowered, and the net re¬ ceipts coming into my liands have, in consequence, been less than the rates formerly received from the New Brunswick company. The usual rates were nominally charged for a time, but only the rates decided to be legal by that judgment were collected, as a general thing; afterwards, however, the rates chai'ged conformed to that decision, which is tho practice now. The difference between the rates collected and the rates charged, during the time just men¬ tioned, still stands charged on tho books of the transportation agents against the persons whose goods were transported. Since the 1st of April, 1846, the transportation has been conducted under the old name of the Union line, at least I know of no change. Bordentown, Friday morning, October 19, 1849. William H. Gatzmer resumed.—I am authorized and requested to state to the commissioners the amount of stock held in the joint 120 companies by the following individuals, at their instance: Messrs. John Potter and his two sons, James and Thomas F., own forty- one hundred shares; Coihmodore Robert F. Stockton and his son, John P., own four thousand six hundred and sixty-nine shares, Messrs. John C;, Robert L., and Edwin A. Stevens own seven thousand and five shares. In the, Philadelphia and Trenton Railroad Company, ,the same individuals own as follows: the Messrs. Potters three hun¬ dred shares, Robert F. Stockton ten hundred and fifty-nine shares, and the Messrs. Stevens seven hundred and twenty-one, shares. Their proportional interest in the five thousand five hundred shares held by tbe joint companies is as follows: the Messrs. Stocktons and Potters sixteen hnndred and eight shares, the Messrs. Stevens twelve hundred and eighty-four shares, calculating their interest to be in proportion, to the amount of stock held by them in the joint companies, making in the aggregate, as held by these two families, i5,774 shares, out of the 30,000 shares of the capital stock of the joint companies, and making 17,854 shares held by them out of the 34,500 shares of the capital stock of both the joint companies and the Philadelphia and Trenton Railroad Company, exclusive of the 5500 shares of the latter company, held by the joint companies, and making the amount of their interest in the whole 40,000 shares of the joint companies and the Philadelphia and Trenton Railroad Company equal to 20,746 shares. The interest of the persons above named have stood in about the above proportion for several years past. Both families are interested to a considerable extent in the loans of the company, as holders of the bonds of the company. The business passing tbrough my office in connection with the Philadelphia and Trenton railroad is as follows: the daily account of the receipts of the lines running in. connection with the Camden and Amboy branch road and the New Jersey railroad, kept in the office of the Philadelphia and Trenton Railroad Company by Jas. Morrell, secretary of said company, in Philadelphia, and in New York a daily account of the same lines from New York is kept by the New Jersey Railroad and Transportation Company. At the close of each month Mr. Morrell, of the Philadelphia and Trenton Railroad Company, and Mr. Southmayd, the agent of the New Jersey Railroad and Transportation Company, meet together, alter¬ nately in Philadelphia and New York, with abstracts of the month’s business, and make a settlement of the business in which the New Jersey Railroad and Transportation Company are interested, and make the division of the receipts, according to the contract in re- ference to this matter, Mr. Morrell acting on behalf of the Phila¬ delphia and Trenton .Railroad Company and the joint companies; and the amount which may be due from the New Jersey Railroad and Transportation Company on such settlement is paid over to Mr. Morrell. A settlement is then made between the Camden and Amboy Company and the Philadelphia and Trenton Railroad Company, according to the terms of the contract between them. The amount that is found duo the Camden and Amboy Railroad Company is paid over to me. This settlement is made by Mr. Morrell and myself. The principle of the division is this: the mo¬ ney received is divided between the two companies, in proportion to the distance which the passengers are carried over each road, respectively; each company receives the whole way fare of passen¬ gers travelling exclusively on their own road. The Camden and Amboy Railroad Company furnishes all the machinery, such as steamboats, locomotives, and cars, and furnish the fuel, and pay tlie hands connected therewith ; and in consideration thereof, the Philadelphia and Trenton Railroad Company pays the Camden and Amboy Railroad Company ten thousand dollars per month; this is the usual rate, it has sometimes varied a little. No additional sum is paid when, for any reason, tlie trains are obliged to run over the Camden and Amboy road from Trenton to Camden. This does not often occur, but .does sometimes in case of accident or obstruc¬ tion on the Philadelphia and Trenton route. AVhen the lines were first run in connection witli the Philadel¬ phia and Trenton railroad and the New Jersey railroad, the Cam¬ den and Amboy road, via Camden and Trenton, was more used by these lines, and at that time the Philadelphia and Trenton Railroad .Company was charged at the rate of so much per passenger for carrying them their part of the way, that is, to Trenton. The money received from the post office department, for carry¬ ing the mails, is divided between the two companies, according to the distance carried by each. The mail is passed between Phila¬ delphia and New York four times a day; one passage is made by the Camden and Amboy company alone, for which they receive one quarter of the contract price, the other three quarters are di¬ vided in the ratio above mentioned. This contract only extends between Philadelphia and New Brunswick, the New Jersey Rail¬ road Company have a separate contract for their part of the line. The repairs of the Philadelphia and Trenton Railroad Company are mainly done by the workmen of the Camden and Amboy Railroad Company, but are paid for by the Philadelphia and Trenton Railroad Company. I don’t think there is any written contract in reference to the ten thousand dollars per month, before mentioned. The rolls for the payment of the men employed in making repairs on the Philadelphia and Trenton railroad, and the expenses incurred in those repairs, are made out directly against the Philadelphia and Trenton Railroad Company, and paid by them. Capt. Shippen is paymaster, and pays these rolls, and then hands them over to me on his settlements, and I hand them over to the Philadelphia and Trenton Railroad Company, and collect the amount of them. The charge above alluded to, of ten thousand dollars per month, is collected by me of the Philadelphia and Trenton Railroad Com¬ pany, at our monthly settlements. The authority for making this charge against the Philadelphia and Trenton Railroad Company, is the instructions to that effect received from the executive com¬ mittee. The same executive committee exercises jurisdiction over' both roads, or, I believe, the same persons constitute the executive committee for both companies. The settlement of the amount paid to equalize dividends between the two companies, under the con¬ tract in that behalf, is also made by the authority of the same ex¬ ecutive committee. Mr. E. A. Stevens is superintendent of both '•The Camden and Amboy Railroad Company, in carrying nut the objects of their charter in making the road complete between New York and Philadelphia, found it necessary to have accommo¬ dations to cross the passengers from Camden to Philadelphia. They built and placed a steam ferry boat, called the State Rights, for that purpose, to ply between Camden and Philadelphia. They also built a tavern house at Camden, adjoining the ferry. After tlio. charter was obtained for the Camden and Philadelphia Steam Ferry Company, they thought that the business of crossing the passengers and merchandise could be as well done by the ferry company; they therefore sold to the ferry company their steamboat, before men¬ tioned, and a new boat called the John Fitch, and fixtures, and the hotel or tavern house to the Camden and Philadelphia Steam Ferry Company, and took the amount of sale in the capital stock of the said ferry company, amounting to twelve hundred and seventy-one shares, at the par value, fifty dollars a share, which sale to the ferry company' was made in 1837 or 1838, 1 think. The ferry company has carried the passengers, and sometimes the merchandise, be¬ tween Camden and Philadelphia, and have been settled with from lime to time for such service. Generally the rates paid by the Cam¬ den and Amboy company to the ferry company have been the same as those charged by the other ferries between Philadelphia and Camden, as regards passengers. As to the charge of freight of goods, I- have not the means of making a comparison with those of other ferries; they have varied from time to time, but they have generally been from one to six cents per hundred pounds. For the freight carried by the way market lines, not belonging to the busi¬ ness of the transportation agents, the feiry company have had one quarter of the amount of freight received by the Camden and Am¬ boy Railroad Company. The majority of the number of the shares of stock of the ferry company is held by the Camden and Amboy Railroad Company. The ferry company has made one dividend, in February, 1849, of five dollars a share. The Camden and Amboy Railroad Company has never received any other income from their stock in said ferry company. The ferry company has purchased property, which they have been pay¬ ing for out of their earnings, and still remain indebted for part thereof. They do not owe any thing to the Camden and Amboy company, except it may be for small hills for coal or the like. They did make a loan from the Camden and Amboy company, of their bonds, August 22d, 1840, amounting to the sum of $37,500, and other funds, amounting in all, with those bonds, to $41,554.82. The ferry company have repaid the whole amount of the loan, at the par value of the bonds, with interest. This loan was made by the ferry company, to enable them to purchase out Jacob Ridgway’s ferry property, at the foot of Market-street and Arch-street, Philadelphia, and the tavern houses thereto annexed, and the ferry and ferry house at Camden, now called Cake’s ferry, besides some stabling and dwelling houses in Camden, being all the property, I under¬ stand, owned by Mr. Ridgway in Camden. This property, I under¬ stood, was all denominated the ferry property of Mr. Ridgway. There was also included in the purchase a tavern property situated at Bloomsbury, South Trenton, including the wharf or steamboat landing adjoining. There was also included in the purchase from Mr. Ridgway the steamboat Hornet, and a stipulation to purchase of his tenants, Messrs. Reeves & Knisell, the steamboats Wm. Wray and Philadelphia, which were used on the said ferries, and which were accordingly so purchased. The fixtures of the said ferries, and, I think, a small frame dwelling belonging to Knisell, were included in the purchase. The ferry company runs two fer- 124 ries between Philadelphia and Camden; they rent out the Arch- street ferry landing and hotel. They still own tlie steamboat land¬ ing and tavern house at South Trenton, which they rent out. The Camden and Amboy Railroad Company own no property in Philadelphia, held by trust or otherwise. The wharves in front of the Walnut-street block were built by the Camden and Am¬ boy Railroad Company, and they now have use of them by the payment of an annual rent to the Philadelphia and Trenton Rail¬ road Company. They also rent the offices used by them in Phila¬ delphia of the same company. I should except the pier next to Walnut-street, which was built by the ferry company; and, after the Camden and Amboy Railroad Company removed its establish¬ ment from below Chesnut-street to Walnut-street, they built the wharves, as before stated. The Philadelphia and Trenton Railroad Company own the property at Bristol and Tacony. The coal lands in which the joint companies were interested have been sold, but. not yet conveyed to the purchasers; it is under contract to be con¬ veyed when the purchase money is all paid; the title is still in Ro¬ bert P. Stockton, for the use of the joint companies. The follow¬ ing steamboats are owned by the Camden and Amboy Railroad Company: on the Delaware, the John Stevens, Trenton, New Phi¬ ladelphia, Burlington, Washington, Camden, Amboy, and New Jer¬ sey (propeller); on the Raritan, John Potter, Independence, Trans¬ port, Swan, New York, Princeton, Rainbow, and Thistle. The Cam¬ den, Amboy, New Jersey, Princeton, Swan, New York, Rainbow, and Thistle are used as tow boats; the Burlington and Transport are freight boats; the rest are used as passenger boats. The Rainbow was purchased by the company, in the year 1846, of the Hoboken ferry company, as T understood. In' my examination yesterday, relative to free tickets, I stated our instructions to our agents and conductors are positive, not to permit any persons to pass without tickets; I should have added, or order of a director or authorized agent.- The orders are gene¬ rally in writing, sometimes verbally, to the ticket agent. We pass free the free list passengers of the Philadelphia and Trenton Rail¬ road Company, the persons on their lists, and not on the lists of. our company; all free passengers do not have a standing ticket in their possession, but are recognized by their names being on the free list, and are provided with a ticket by the ticket agent when they travel. I think some of'the members of the legislature passed without tickets during the session of the legislature. My attention 125 being called to the fact, that reports have been circulated to the effect that the Camden and Amboy company and the Camden ferry company used coal off of the same heap, and wood off the same pile,- indiscriminately, I have to say with regard to that, that the affairs of the two companies are kept entirely distinct; and if one company uses the wood or coal of the other, or any thing else, an account is kept, and settlements made thereof from time to time; and also, that any of the cars or machinery of the companies used at Camden, or any where else, for filling up the property of any of the directors or other individuals, or for any other private purpose, they are regularly charged for the work done or service rendered by such cars or machinery, and the amounts collected and paid. On referring to the treasurer’s book, I find that there is an entry of 83741.24 charged for a deficiency in the insurance account, before mentioned, accruing from December 1st, 1S47, to May 31st, 1848. I was mistaken, therefore, in saying that that account was closed at the end of the year 1847; it must have been closed on tbe 31st day of May, 1848. There is one line, the six o’clock morning line, run by us in con¬ nection with , tbe New Jersey railroad, in which tbe Pbiladelphia and Trenton railroad have no interest; the settlements for that line are made by a clerk in my office, and Mr. Soutbmayd, before men¬ tioned, monthly. The object in stating the amount of stock held by the principal stockholders having the control of the joint companies, was to show the fact, that their proportional interest in the joint companies was always about the same as their proportional interest in the stock of the New Brunswick Steamboat and Canal Transportation Company, commonly called tbe Napoleon company, and that they could have no interested motives, as has been charged,in sacrificing the inter¬ ests of the joint companies to those of the Napoleon company, since every dollar made by the joint companies was attended with just as much benefit to them as if made by the Napoleon company. The real objects which the persons having the contracting inter¬ est in the joint companies have always had in holding an interest in the Napoleon company, have been, as I have understood it, and as my observation has led me to believe, to have it in their power to render the joint companies more profitable to the joint compa¬ nies themselves. I think it very likely, also, that the joint compa¬ nies, also, have left the transportation on the railroad to be done by the Napoleon company, from the idea that the Napoleon company 126 were not limited by any restrictions, as to the rate of charges for freight or otherwise, any more than any other individual using the road would be, and that the railroad company was entitled to charge them the full amount of tolls expressed in the charter, with¬ out expense to themselves. They also deemed it important to themselves to be free from liability of common carriers, the whole responsibility of which,- it was supposed by this airangement, was borne by the Napoleon company. WM. H. GATZMER. Sworn and subscrihed, the 20th day of October, 1849, before the commissioners. Aaron Robertson, Ch’Ti. Bordentown, Monday, October 22, 1849. William S. Freeman, being duly sworn, deposeth and saith— I am a transportation agent of the Camden and Amboy Railroad • and Transportation Company. 1 have been such from the first day of April, 1846. Prior to that time, and from the seventh day of March, 1836,1 was a transportation agent of the Union transport¬ ation line, of which the New Brunswick Steamboat and Canal Transportation Company were proprietors. My office has been in Philadelphia all that time, and up to the present. From the latter part of October, 1832, to the Ith March, 1836,1 was a clerk in the transportation office of Hill, Pish & Abbe, in Philadelphia. They preceded the New Brunswick company, as proprietors of the said line, and it is still called the Union transportation line, under the propnetorship of the Camden and Amboy Railroad Company. The nairie was continued because it was an established line, and there was no just cause for changing it; and being a popular and well known designation, it was retained as a matter of convenience and policy. The said line has always been engaged in the trans¬ portation business, between New York and Philadelphia, across the state of New Jersey. At first its business was conducted by means of steamboats and wagons, occasionally sail boats were used, the steamboats running on the rivers Delaware and Raritan. On the Delaware, the steamboats first ran up to Trenton, and wagons went from thence to Nevv Brunswick. This continued until near the end of the use of wagons, say till the spring of the year 1833, when we sent our goods by boats to Bordentown, and from thence in wagons, either to New Brunswick or to some point on the rail¬ road. My impression is, that in the winter of 1833-4 we commenced running regular on the railroad between Bordentown and South Amboy. Since that time the business has been conducted across the railroad entirely, either between Bordentown and Amboy or between Camden and Amboy.' I cannot specify, from memory, what particular periods the boats have run to Bordentown. AVe are in the habit of sending the goods by Camden whenever the iiavigation IS closed on the Delaware, and occasionally at other times. The Camden and Amboy Railroad Company were the re¬ puted owners of the steamboats in which the business of the Union . transportation line has been conducted, from the time I was first connected with it, in 1832. Hill, Fish & Abbe found their own wagons, as long as wagons were used, and during that time paid the railroad company a compensation for the use of their steam¬ boats, which I think was twenty-five per cent, upon their receipts; and ray impression is that they might have paid the railroad com¬ pany a per centage on their business, after they commenced run¬ ning on the railroad; but in the year 1835 they received a commis¬ sion of about twelve and half per cent, for transacting the business for the New Brunswick Steamboat and Canal Transportation Company. On the 7th day of March, 1836, these commissions ceased, and the New Brunswick company employed agents to transact, the business, and paid them salaries. It was at that time that I received my appointment as agent. On the 1st day of April, 1846, the New Brunswick company gave up the business, and since that time the Camden and Amboy Railroad Company have transacted it on their own account. The New Brunswick company were proprietors of the line from about some time in the year 1834. The arrangement between the New Brunswick company and the Camden and Amboy Railroad Company I only know from the mode in which my accounts are settled, and according to that the railroad company received 84.88 per ton on through freight, for the use of the railroad and cars and machinery, and 82.76 per ton on the same, for the use of the steamboats, and half those prices for the aggregate of the way freight. For some coarse through freight, and for a class of through freight called winter freight, the amount received by the railroad company was less than these rates. By winter freight, we mean all freight shipped by J. & N. Briggs from New York, and Wm. M. Baird & Co., and their predecessors, Loper & Baird, from Philadelphia to New York, carried over the railroad in the, winter season, which is carried at low rates of 128 freight, being articles that usually go through the canal, when it is open, and which is carried across the railroad in winter to accom¬ modate the customers of the canal line, and to keep up the business of those lines. There are two principal agents superintending the business of the Union transportation, line besides myself; these agents have been, since my agency commenced, Alfred Decker, at New York, and Benjamin Fish, at Trenton. The duty of Mr. Fish is to superintend the business in the state of New Jersey, of Mr. Decker to superintend the same in New York, and of myself to superintend.the business in Philadelphia. We there meet monthly, with the e.\ecutive committee of the railroad company, to settle the general business of our several agencies. Our several accounts of receipts and disbursements are then examined. In the statements that are made'out for this settlement, are exhibited the weights of the goods transported for each day during the month, distinguish¬ ing the way from the through freight, and the amount of the way • freight which is liable to'transit duty; also the amount of receipts for the transportation of said goods, and by whom received; also the amount of charges advanced on the goods, when received from other lines and the expenses paid, and by whom so advanced and paid, showing the balance.due to and from each agent and the amount due to the railroad company. The original way bills for the month are also produced to verify the receipts, and the vouch¬ ers for the disbursements are also produced to verify the same. A general statement of this settlement is then made, and a copy of it is furnished to Mr. Gatzraer, the agent of the railroad company at Philadelphia, and the money due the railroad company is paid over to their agent, Mr. Gatzmer. This was the plan pursued as long as the New Brunswick company had the business. Since the railroad company have done the business, the whole balance has been paid over to ,Mr. Gatzmer. The way bills, which have been sent here to the commissioners, exhibit a true statement of the goods transport¬ ed by this line. The statements made at the monthly settlements, before mentioned, exhibit a true account of the business of the line, as accurately as it can be made. We consider all way freight sub¬ ject to transit duty that crosses the state, or from the river Dela¬ ware to any point on the river Raritan; and from any point on the Raritan to Trenton, Bordentown, Burlington, and Camden, and so make up the accounts. Prior to some two or three years ago, Mr. ■Decker and myself construed the way freight subject to transit duty to include all points on the railroad below Bordentown, transported 129 lo or from Amboy. We were told this was wrong, and directed to make the account as stated above. The reason given was, that our previous mode was not in accordance with the resolution of the le¬ gislature. I make certain disbursements in the business of the line; these disbursements are the damages, deductions, office expenses, incidental expenses, (by which I mean all expenses incident to the business not occurring in the office) rents, salaries, labour, and charges advanced on goods; these heads will cover nearly every disbursement made by me. The method of transacting our daily business is as follows: first, the goods are delivered to us at our scales, where they are immediately weighed, and the weights are entered on a slate, according to the mark and number of the pack¬ age; a memorandum is then given at the scales to the shipper, con¬ taining the marks and numbers of the package, to whom consigned, and by whom shipped; this memorandum is taken to the office, wliere a receipt is given for it, and the articles recorded on the en¬ try book, and also on a way bill, which is kept up as close as pos¬ sible with the entry book. The entry book and way bill show the marks and numbers of the packages, weights of each entry, by whom shipped, and to whom consigned, the rate of freight, and amount received, or to be received for freight, together with the charges advanced on the goods, if any. BonDE.NTOwN, Tuesday, October 23, 1849. The goods are then forwarded to New York, the way bill ac¬ companying them. This completes the operation, so far as I am concerned with these goods. The only paper or entry relating to the goods retained by me is the entry hook before described. Way freight is received by the agents of the transportation line in nearly the same manner as at the principal offices, with the exception that it is not always weighed at the point received. This was more usu¬ ally the case formerly than now, as we have lately supplied several of the agents of the stations with scales. Some articles, such as ci¬ der, peaches, fruit, grain, flour, potatoes, &c., are not weighed at the point of receipt or deliveiy, the general weight being known by us. A way bill is made out by the agents at the stations, and de¬ livered to the conductor of the transportation train carrying the goods, which way bill contains a specification of the articles trans¬ ported ; which way bill is delivered at the office where the goods are to be delivered. When that office is at the end of the line, this way bill, containing the several articles, is entered on the principal way bill, and the weights of the several articles inserted therein, with the amount of the freight received for the same. When way freight is received, and delivered at any intermediate station or point on the line, the agent at the place of delivery generally collects the freight, and accounts for it to Mr. Benjamin Fish, who, at some subsequent time, returns it to the principal oifice at the end of the line, and it is then entered on some way bill, generally at the end of the month. When the said freight is rendered in detail it is en¬ tered in detail, sometimes it is entered as a lot of sundries in bulk; my belief is that it is always entered on some way bill. The prac¬ tice formerly was to return such freight indiscriminately to the offices at either end of the line, but the practice now is to make the return to the'office in Philadelphia, when the goods go towards New York, and to the office in New York, when the goods go to¬ wards Philadelphia; and then the entries are made on the way bills at the office where the return is received, as before stated. The re¬ turns now made by Mr. Fish are more specific, as to items, than formerly. The goods are forwarded from Philadelphia by the steamboat Burlington every day at one o’clock; our rule is to for¬ ward all goods received by twelve o’clock, the same day. The goods are carried by that boat to Bordentown, where they arrive about half-past four o’clock P. M. of the same day, where they are landed, and forwarded immediately, by railroad cars, to Amboy, and thereflhipped on board the steamboat Transport for New York, where they are delivered at Pier No. 1, North river, at about five o’clock A. M. in summer, and seven o’clock A. M. in winter. The aboye is the general an-angement when the navigation is free from ice. When the navigation of the Delaware is obstructed by ice, the goods are sent to Camden, either in steamboats belonging to the Camden ferry company, or in barges hired for the purpose, which ijarges are generally towed by steam, by.the ferry company; the goods are then transported by railroad to Amboy; goods are also sent by way of Camden, when accidents occur to the steam¬ boats on the Delaware. If produce, fruit, and other articles are taken up by the passenger lines, such freight will, or ought to, appear on the regular transportation way bill for the day of the transaction. This account is rendered by the conductor to the transportation agent at the end of the line. . The goods shipped from New York for Philadelphia, are deli¬ vered at the railroad company’s wharf, at the foot of Walnut- street, Philadelphia, a w'ay bill of the kind before described being 131 forwarded from New York, and generally arriving at Philadelphia before the goods. On the receipt of the way bill, the first thing done is to make out the freight bills against each consignee, which contain a list of the articles for each consignee, and the amount of freight, &c., to be collected. These bills are then examined by another person, and then entered alphabetically in a book, called a journal by us, the total footings generally corresponding with the amount charged to me on the way bills. Part of these bills are then distributed among the draymen, who go on the wharf with the delivery clerk, select the goods, and deliver them to the con¬ signee, and return the amount of freight charged on the bills, or the bills themselves, to the office. In some cases we keep accounts with consignees, and receive the amounts of their freiglit monthly. Losses for freight not collected are charged in the expense account, when ascertained: The tonnage of freight so lost is always returned to the state for transit duty, and no deduction made for such loss. The goods received by us, and the consignee unknown, are retained until called for. Besides the journal, before spoken of, we keep what we call a collection book, which contains also the bills given to the draymen, as well as the monthly accounts, being a full record of all the freight received by mo. I likewise keep an expense book, or a book of account current, which contains all the charges attending transportation paid by me, and also a book of general balances, showing the amount uncol¬ lected at the end of each month, or when made. From April, 1S4S, to March, 1S49, we kept a book of accounts, called deferred claims, which showed the difference between the amount charged on the way bills and thirty-two cents per hundred pounds. I should think that this difference would amount for that time to about thirty thou¬ sand dollars at my office. The abstract of weights is made up monthly from the way bills. There has been no favouritism ex¬ tended to any person in the transaction of the business, in regard to rates of freight all are treated alike. We do make a difference in the rates of freight per hundred pounds for certain descriptions of goods. Some kinds of goods are carried for less than thirty-two cents per hundred pounds, such as printing cloths, sheetings, brown drills, flour, butter, cheese, iron, and similar articles. There are express crates carried over the railroad for Adams & Co., Livings¬ ton & Co., and Kinsley & Co. (formerly Gay, Kinsley & Co.), the weights of which are accounted for entirely in my office at present, both ways; the money is received by Mr. Decker, and is 132 paid according to'a contract with these parties. The crates are ac¬ tually weighed by me whenever they arrive or depart. After these crates leave my office, they are in the charge of the railroad com¬ pany until they are delivered to thei proper owners in New York; they generally contain light and valuable articles. I do not know the reason that the railroad company made the present arrangement with the companies above named, except it be to increase the business on the railroad and to afford more general accommodation to the public. Adams & Co.-have three crates, and sometimes four, each way, every day, Livingston & Co. and Kinsley have each one crate every day, both ways, and. occasionally an extra one. These crates are loaded by the respective parties owning them, and they assume the whole responsibility of the business. These crates will average about three thousand pounds, as usually forwarded. The actual weight is now invariably returned for transit duty; formerly, and previous to the last two years, the weights of the express crates were returned by estimation. This estimate of weight was made by allowing one hundred pounds for every dollar received by the railroad company for carrying the crates. There is a kind of business done bn the railroad, in the winter season, called winter transportation, which is done in the following manner: the goods are received in New York by J. & N. Briggs, agents of the Swiftsure line, and' shipped by them on barges, be¬ longing to the New Brunswick company, to South Amboy, and from thence carried by railroad to Camden, and from thence sent by barges or ferry boats to Philadelphia, where I take charge of them, and deliver them to the consignees. Bobdentown, Wednesday, October 24, 1849. ' Wm. S. Freeman resumed.—They are delivered to the con¬ signees in the same manner as those transported by the Union line. The freight is collected, and an account thereof kept of the same, entirely separate from the business of the Union line. At the end of the winter transportation season a settlement is made of that transportation, and the net balance, after deducting the expenses of the receipt and delivery of the goods, ascertained; that balance is then paid over to Mr; Gatzmer. This was the method prior to April 1st, 1846. Previous to the year 1846 the goods were received in Philadelphia by Loper & Baird, and forwarded, by the same means of conveyance before stated, to Alfred Decker, New York, and by him delivered to the consignees, and the freight collected 133 Ijy him, and accounted for to Mr. Cxatzmer, as aforesaid. Since 1S16, the goods from New York have been received by me in Philadelphia, and delivered by Mr. Decker in New York, and the goods in New York have been received by J. & N. Briggs, and forwarded to me for delivery in Plriladelphia. The goods trans¬ ported by the winter line are not usually weighed, neither upon the receipt or delivery. To ascertain the number of tons subject to transit duty, the fol¬ lowing method is taken: we return 100 lbs. for transit duty for every twenty-livo cents charged for freight; that rate was ascer¬ tained in the following manner: first, by actual weighing of one cargo of goods from New York, by which tve found the average freight on that cargo was, I think, 27-J cents per 100 lbs.; a cargo for New York was also weighed, the average freight of which was upwards of 26 cents per 100 lbs.: since then every cargo returned has been at the rate of twenty-five cents per 100 lbs. I think it was in the year 1812 or ’43 when the two cargoes before mentioned wei'e weighed. My impression is that those cargoes were weighed during the winter previous to the first settlement. 1 do not think the charges for freight by this line are as high as they were at its commencement, still I think they will average twenty cents per 100 lbs., or more; (last winter the rates of freight were not so high certainly). If they average twenty cents per 100 lbs. the returns to the state for transit duty would be one-fifth too small. The charges for most articles are by the box, bale, or package, some by measure and others by weight, furnished by the shipper. My opinion is, that it would be equally advantageous to the railroad company, and more satisfactory to the state, .to weigh every article transported by the winter line. Many of the goods transported by the winter line are of the same kind as transported by the Union line. My opinion is, that if the winter tran.S|)ortation line was dis¬ continued, the amount whicli would be realized by the railroad company would fully equal the amount received at this time. There is no favouritism shown in this winter line, all persons are permitted to transport by it at the same rates. 1 believe the esta¬ blishment of this line was for the purpose of competing with sea lines. I do not think this line had any appreciable effect on the Union line’s business; although a cheaper line, it was slower..Valu¬ able goods were freighted at nearly the same price as charged by the Union line, coarse goods much less, light goods much greater. I should think it would bo impossible, from the way the business 134 of transportation is conducted on the railroad, to perpetrate any material frauds, either in the tonnage or receipts, except by collu¬ sion between the principal agents. One of them could not commit such frauds without detection; nor do I think that both could do it, even by collusion, without the knowledge of their subordinates. I never had any doubt but that the estimates for the weight of winter freight were high enough, except with regard to the winter freight of last winter. Mr. Decker and Mr. Fish, at that time, sug¬ gested a doubt on the subject, but I still thought it was high enough; and there being a difference of opinion, the accounts were made up as they had formerly been. I have since, on reflec¬ tion, been inclined to think that the estimated weight was not suffi¬ ciently high; I speak with regard to the winter freight of last win¬ ter. A ton of dry goods, by real weight, will measure from 75 to 80 feet. The charges of freight by the winter line vvere generally about the same from its commencement up to last winter; there were slight deductions made in open winters. The prices of freight in the Union line were quite firm from 1843 to 1848, when the charges were reduced. A,ccidents excepted, we were always able to do all the business that was offered over the railroad without de¬ lay, and, with proper arrangements, could do three times as much. WM. S. FREEMAN. Sworn and subscribed, the 24th day of October, 1849, before the commissioners. Aaron Rohertson, Qh’n. Bordentown, Wednesday, October 24, 1849. Alfred Decker, alleging himself to be conscientiously scrupulous of taking an oath, and being duly affirmed, doth declare and say— Having heard Wm. S. Freeman’s testimony read to me, I can say, that the general mode of transacting the transportation busi¬ ness on the railroad, of making up the accounts, and making the monthly settlements, accords with my knowledge of the subject. I have been engaged in the Union transportation line twenty-four years; the last thirteen years of that time I have been agent in New York. Goods are generally weighed by us before being put on board the steamboat for Philadelphia; sometimes the shipper fur¬ nishes us with the weights. We collect nearly all the freights that are cash bills the day they are received. We deliver them immediately. , The settlements made by us at the end of the month exhibit a 135 true statement of the transportation business of the railroad for the month, being made up from the daily way bills, so far as regards the receipts and weight. If our understanding as to what way freight is dutiable is correct, all the transportation across the state on the railroad liable to transit duty is duly returned. The way freight returned for transit duty includes all freight transported between South Amboy, on the one hand, and Philadelphia, Camden, Bur¬ lington, Bordentown, and Trenton, on the other. We formerly re¬ turned more, that is to say, all freight transported between South Amboy, on one end, and Trenton, Bordentown, or any station be¬ low Bordentown, on the other. When freight came from Princeton, or any other point between Trenton and New Brnnswick, by way of Bordentown, to New York, I do not think we ever returned it for transit duty. There was never any amount of any consequence of this description of freight, except in the winter of 1846-7, when the rush of grain occurred. A discussion arose here, at a monthly meeting for settlement, two or three, or four years ago, about the true construction of the transit duty resolution of the legislature of Now Jersey, passed in 1842, and the conclusion was, that we should in future return only for the places and points named in the resolution expressly, that is to say, Camden, Burlington, Bordentown, city of Trentoit, and the Trenton Delaware bridge. It was supposed that these points on the river were named in the act for the purpose of em¬ bracing all goods that might be landed at these points from the' river, whether from Philadelphia, Easton, or elsewhere. Our re¬ turns have always embraced goods starting on our railroad from these points, whether coming from the river or not, and also all goods destined for these points from South Amboy. I should think that we had superintended the freight called winter freight for seven or eight winters past. Mr. Freeman is cor¬ rect in stating the mode we have heretofore adopted in ascertaining the tonnage of the winter freight, namely, allowing 100 lbs. for twenty-five cents of the amount of freight charged thereon. I think our estimates of the weight of this freight were rather too small last winter, and probably the winter before. My reason for thinking so is, we carried a good deal of pig iron and boiler iron at a re¬ duced rate, but I am not positive but it may have been enough; the winter before last, I entered into no calculation of it. The receipt.^ from this winter line, prior to April 1st, 1846, were disposed of as follows: first, the expenses were paid out of them, I mean the commissions, labour, advertising, wages of captains and crews, charters of the barges, the labour of handling goods at Amboy, conductors’ and brakemen’s wages, &c., and labour at Camden in¬ cluded. The balance was paid over to the treasurer of the New Brunswick company, A. S. Neilson. In our returns, we made a statement of what was to be paid to the railroad company for this transportation-on the railroad. It was my understanding that the railroad company did receive, or were to receive, all the money- derived from the winter transportation, after paying expenses above mentioned. The commissions paid in New York were the commis¬ sions paid to J. & N. Briggs. Since April 1st, 1846, this winter freight has been transported by the Camden and Amboy Eailroad Company on their own account. J. & N. Briggs are employed as agents, in New York, to receive the freight, and I deliver the freight received from Philadelphia. In Philadelphia, W. S. Free¬ man both receives and delivers it. As to the expresses established on the railroad, the arrangement with the express lines is, they are furnished with crates by the com¬ pany, a certain number to each line each day j and they can-y in them whatever they choose, except gold and silver, and pay to the railroad company two-thirds of their receipts, as manifested by their way bills. There is a provision that the minimum price they are to pay shall be twelve and a half dollars per crate. The weights are now ascertained by being weighed by Mr. Freeman, so as to return the same for transit duty, and are included in the amount returned for transit duty at the monthly settlement. Previ¬ ous to this year, their weights were estimated at 100 lbs. for every dollar of freight received by the railroad company. I think this method of ascertaining the weight of goods carried by the ex¬ presses was a fair method at the commencement of the business; it was then almost exclusively a package business. Since then the character of the business has materially changed; they now carry heavier goods at lower rates than formerly. I think we did not re¬ turn as much as they carried prior to this year, arising from the fact, that their business and prices changed, and we continued to make our returns.in the same way. The present mode of weighing the crates must be correct. All the express lines pay me, and pay every week in advance, the payment being made according to the amount of their way bills for the previous week. 1 think that Adams & Co. started this business, as long ago as 1841. By the original agi'eemenfs with these lines, the arrangement could be determined 137 by ten days’ notice from either party. As the number of these ex¬ press lines increased, they got to carrying heavier goods at cheaper rates, in opposition to one another. When I spoke of their cari-ying goods nearly as heavy as we carry, Idiad reference to the last two or three years. Some time, more than a year ago, I made out an ave¬ rage of the rates charged by these lines, and I ascertained that the charges made by Adams & Co. averaged about ninety cents per hundred pounds, and that made by the others somewhat less. This estimate was made by Mr. Freeman actually weighing the crates, and comparing the weights with the amount of money received by the express lines. The practice of actually weighing all the crates, was adopted by reason of the belief that the mode of estimating the weight was uncertain, and there had been no facilities for it previous to that time. • The crates go from New Yoidc full, but they do not generally retiu-n full; about half as much comes from Philadelphia as goes from New York. For the last two or three years previous to the present year, the number of express crates going over the road pet- week, full and empty, has been about fifty-four per week; the present numtier averages about ninety-six per week, I think. I do not know of any mode by which the true amount of tonnage could be ascertained for the time when, as I suppose, our estimate was too small. When Mr. Freeman and me made the estimation by weight of the tonnage carried by the express crates, it was not done with the view of making any alteration in the manner of as¬ certaining the tonnage. This question was not in our minds at all; the object was to ascertain at about what rates they were taking goods. The competition between them was very strong to get the transportation of goods, and I was under the impression that they were interfering with our regular transportation business. Wo found that was not so to the extent we supposed. I don’t recollect myself of thinking of the subject of transit duties at that time, or of hearing any thing said about it. I believe this estimate was made at my suggestion. The subject of transit duty in connection with the express lines, or the mode of estimating the quantity of their transportation, was never adverted to in conversation with the executive committee, to my knowledge, at any time; we talked it over among ourselves, the transportation agents. The reason for adopting the present method of ascertaining by weighing, was to arrive at greater certainty in getting at the weights, and o-jr atten¬ tion was incidentally brought to the subject by the charges that had 138 been made against the companies. I meant, when I said that we had no facilities for weighing, that we had no scale large enough to weigh the crates till about a year since. I estimate the weight of a full crate at about three thousand pounds of such goods as these lines usually carry; that may he a large estimate. From my expe¬ rience and . knowledge of the business, I am satisfied that there neither can be, nor has been, any material omission in the returns of the weight of freight transported on the railroad subject to transit duty, with the exception of the express lines, as above stated, un¬ less the construction given to the resolution of the legislature, be¬ fore mentioned, be incorrect; and there has not been, nor do I think there can be, any frauds or material mistakes committed in accounting for the receipts from the transportation. The principal agents are checked by subordinate clerks in their own offices and by one another. We have been in the habit of running a train in the summer season, for the purpose of carrying the produce of the state of New Jersey to market; it is called the way freight train. I should think it had run, at intervals, for the last six or eight years: it runs from Camden to South Amboy and New York. It has ge¬ nerally been able to do all the business offered. There have been instances of this line not being able to carry all the freight offered, but those instances are rare. The rule is to take all the freight as it is offered, until the cars are full, without any reservation for any favourite persons or places, to my knowledge. I believe that peaches have been brought, in some instances prior to the last two years, in the passenger boat, but whether they came by the passenger train or not I cannot say. I believe there have been none brought in that manner within the last two years, as far as my knowledge extends. The freight has always been regularly charged and paid; in whatever way brought, the usual rates were charged. In the season of 1848, the proprietors of some of the or¬ chards had a boat of their own running between South Amboy and New York, and, as they did not land their peaches at our wharf, I do not know the time they arrived. So far as 1 know, the lines were open to all, and all had equal facilities. For the last two sea¬ sons, a rate of charge for marketing, peaches, &c., on the railroad, has been arranged uniform, according to the distances carried. The peaches alluded to, as having been brought in the passenger boat, were Mr. Buckelew’s and Col. Cook’s. 1 have no idea of the quantity so carried, not a very great proportion, however, to the quantity they brought. 139 No action was taken by tbe executive committee, in relation to tlie transportation in the express crates, on the occasion on which Mr. Freeman and I weighed them, as before stated. I believe one object under consideration was the question of charging them a certain sum on each crate, instead of a per centage on their re¬ ceipts, but nothing more was done about it. The monthly returns of the quantity of goods transported across the railroad have always been made up by the transportation agents, Mr. Freeman and my¬ self, and our clerks. Mr. Stevens, the treasurer of the road, never had any hand, to my knowledge, in making up these returns. I be¬ lieve he knew nothing about the details. His attention was never called or directed, to my knowledge, to the mode by which we es¬ timated the quantity of goods transported in the express crates. These express freights are incorporated in the way bills, wbicb be never examined, and taken off of them and carried into the ab¬ stracts in gross with the other freight. It was certainly the duty of the transportation agents to return the correct quantity of goods transported. I should think that the rule we adopted for estimating the weight of the crates, began to be defective when an additional express line was started; not so much, of course, at first as at the time when we began to weigh them. The creation of competition natu¬ rally had the effect to reduce their prices. Bordentown, Thursday, October 25, 1849. Alfred Decker resumed.—The stipulation, that the express com¬ panies shall pay us at least twelve and a half dollars per orate, ex¬ tends to all of them (except to Adams & Co., to whom it has never practically applied,) and to the crates carried both ways, whether full or not, and they liavo sometimes, in that way, paid us more than they have got for their 'freight. The exact terms of the ar¬ rangement were these: for having the privilege of sending one crate a day, each way, that is twelve crates per week, they were to pay us not less than one hundred and fifty dollars per week. If the two-thirds of their freight lists amounted to more than that amount, of course we received it. We have always calculated the weights for transit duty accord¬ ing to the amount of money we received, as before explained; and when the minimum price was paid to us on the crates, in conse¬ quence of two-thirds of the freight lists being less than that mini¬ mum price, the quantity returned has probably been more than the 140 quantity of goods carried, at least it has probably fully equalled it, and perhaps exceeded-it. ALFRED DECKER. Sworn and subscribed, tbe 25th day of October, 1849, before the commissioners.' Aakon Rodertson, Gh'n. Bordentown, Thursday, October 25, 1849. Benjamin Fish, being duly sworn according to law, deposeth and saith—I have been connected with the Union transportation line since its commencement, in the year 1824; it was established by George Abbe, David Hill, and myself, for the purpose of trans¬ porting merchandise between Philadelphia and New York. We were all concerned actively in the business; I was in Trenton, 3Ir. Abbe in New York, and Mr. Hill in Philadelphia. The modes of conveyance used by us were, at that time, steamboats and sloops between Philadelphia and Trenton in summer, and wagons in the winter; wagons from Trenton to New Brunswick in the summer, and from Trenton to Perth Amboy in the winter, and from Netv Brunswick to New York in the summer time steamboats, and from Amboy to New York in winter steamboats and schooners, princi¬ pally schooners. When the rivers were open, we used them of course. We comrnenced to use the steamboats of the Camden and Amboy Railroad Company as soon as the company became proprie¬ tors of the boats which had formerly belonged to the Union line, and continued right on in the same way. The Union line, to which 1 now refer, was a passenger line, owning steamboats and stages. Our line was called the Union transportation line.' We used their steamboats generally, whenever they ran. I cannot speak, from my recollection, as to the time when the railroad company became the proprietors of these steamboats, but! think it was in the year 1832. Our wagons wo found ourselves, usually hired them. Shortly after tho.railroad was opened for carrying passengers through, we com¬ menced to run our transportation on the railroad from South Am¬ boy to the Sandhills by horse power, and from thence to Philadel¬ phia by wagons, in winter.- In the summer we continued our cars on fo the steamboat at Bordentown.' I think we first commenced in January, 1838, to run from South Amboy to the Sandhills; as soon as the ice was gone, and the boats put on to Bordentown, we continued on to meet the boats. I think we continued to run to the Sandhills only in the winter time, for two or three winters, certainly 141 two, not having the use of the road to Camden; the passengers were run farther on down. Shortly after the road was finished to Camden, we run the goods to Camden on the railroad in winter, but in the summer, when the navigation was open for steamboats to Bordentown, we only used the road between Bordentown and Amboy. In the year 1834 or 1835, I cannot now distinctly recol¬ lect which, we gave up the business to the New Brunswick Steam¬ boat and Canal Transportation Company, and transacted the busi¬ ness for them on commission, till the spring of 1836. I presume Mr. Freeman is right in his dates. After that time the New Bruns¬ wick company carried on the business themselves, and paid their agents salaries. The first agents appointed under salaries were Mr. Decker, Mr. Freeman, and myself; we acted in that capacity up to April 1st, 1846, when the New Brunswick company gave up the business: and since that time up to the present, we three have acted as the agents of the Camden and Amboy Railroad Company in the same business. When the business was done on commission for the New Brunswick company, in 1835, it was done by Hill, Fish & Abbe. I think Abbe and Fish did the business, as agents for the New Brunswick company, for a very short time on commis¬ sion prior to the payment of salaries, Mr. Hill having left. The railroad company never did the business until April, 1846. When Hill, Fish & Abbe first began to transport their goods on the railroad, I think there was no definite arrangement agreed upon. We used our own horses to their cars, and continued our business in the same way we done before. After running in this way some time, we had a settlement with the railroad company, and allowed them what was thought to be right for the use of the road and cars. As to the steamboats, I think it very likely that they were allowed the same that they had been all along, though I can¬ not now distinctly recollect. When the first settlement was made, as above stated, I think there was : gement entered into that we were to pay out of the receipts the current expenses along the road and in the offices, and whatever was necessary to be laid out in conducting the business; and as to the balance, I think we took a commission, and paid the rest to the railroad company; and this arrangement was continued a short time, until the New Brunswick company took charge of the business. I think the New Brunswick company, when they took the business off our hands, commenced paying the railroad company at the rate of so much per ton, and they also paid for the use of the boats; I think for through 142 freight it was S4.88 per ton for the railroad, and 82.7G per ton for the steamboats, making 87.64 per ton through; for way freight they paid half of those rates. The rates may have slightly differed from this on some particular occasions; if they did, there was some good reason for it at the time. I have generally attended to matters along the railroad in New Jersey; my original business was to superintend the wagons. The disbursements made by me, while agent of the New Brunswick company, were the expenses for handling the goods along the road and at the termination. The disbursements in New York were made by Mr. Decker, and in Philadelphia by Mr. Freeman. I also paid the brakemen and conductors; 1 did not pay for repairs done to the cars. The railroad company furnished the cars, locomotives, . engineers, and firemen, and the New Brunswick company furnish¬ ed the rest. I think, for some part of the time, the New Brunswick company'furnished some of the hands on board of the steamboats that transported the goods. I don’t think we did this for the boats on the Delaware. When the New Brunswick company did this business, the railroad company got their pay, to the best of my knowledge, for the tran-sportation done on the road. In 1841 and 1842 the New Brunswick company paid the railroad company fifteen hundred dollars a month, for some time, for the charter of the steamboats Burlington and Trenton on the Delaware. 1 do not know why this additional amount was paid. I have some superin¬ tendence of the way freight. Collections made along the road for freight are paid to me. It is the duty of Mr. Decker and Mr. Free¬ man to make out the accounts of the quantity of freight for transit duty; abstracts are made out by them, at their offices, before meet¬ ing for the. monthly settlements, which abstracts show, for the most part, the amount for each day. Some particular classes of freight are included iu the amount for the last day of the month. I bring in my vouchers for disbursements at the time of the settlement. There is some transportation by the Accommodation lino, via 'Trenton and New Brunswick; this has always been in my charge, and has been regularly returned by me, both as to the weight and the amount received therefor. I return It to Mr. Gatzmer monthly, and he adds it to the amount to be returned for transit duty. Freight carried on that line is not generally carried through. Way bills ac¬ company this freight, from the different stations where it is taken up. I do not think the New Brunswick company ever insured any goods carried by them; Hill, Fish & Abbe sometimes did, while 143 they were unconnected with the railroad company. The Camden and Amboy Railroad Company never effected insurance on goods transported by them, to my knowledge. It is very probable that the New Brunswick company may haVe used some of the old blank receipts of Hill, Fish & Abbe, specifying that insurance could be Hill, Fish &: Abbe found the transportation business a profitable one, while they were engaged in it on their otvn account. Upon giving up the business to the New Brunswick company, we were all three employed as agents by that company for a time. I made no objections to its being taken into the hands of the New Bruns¬ wick company. From my knowledge of the business, I believe it continued to be profitable for a time after the New Brunswick com¬ pany took it. It was considered much more profitable in the early period of the time than in the latter period. I think the reason that the New Brunswick company gave up the business was, that it would hardly pay for the risk required to carry it on. The profits were so small that it would not pay the risk they had to take. Bordentow.v, Friday, October 2G, 1SJ9. Baijamin Fish resumed.—If there were any balances retained by the New Brunswick company on the winter freight, they were so retained, according to my impression, for the purpose of meeting small bills for damages, or other expenses outstanding and unsettled. I don’t think that the New Brunswick company derived any profit from that business. It is my impression that the understanding was, that the railroad company were to have all the proceeds of that business, after the payment of expenses. These small balances may have been set apart to the New Brunswick company abso¬ lutely, to indemnify them against any claims that might come up against them in relation to, or growing out of that business. The goods transported by 'that winter line were not generally weighed, I believe. I presume that the charges by this winter line have diminished some in latter years. The method adopted for ascertaining the weights to be returned for transit duty for this line, I should think, would be a true method up to the last return of that transportation. I am not very familiar with the details of the business of this line. I can’t say there has been much discussion about the subject of the transit duty, with reference to this kind of freight; we have gone on in the usual way for estimating the ton- BENJ. FISH. Sworn and subscribed, the 26th day of October, 1849, before the commissioners. Aaron Robertson, Clin. Bordentown, Friday, October 26, 1849. Ira Bliss, being duly sworn, deposeth and saith—1 am agent of the Camden and Amboy Railroad Company in New York. 1 have been permanently engaged there since the spring of the year 1833. I have an office there; I take receipts and make disbursements there; I receive the receipts of the company from passengers. T do not receive any of the receipts from transportation. I do not receive any of the receipts on the upper route connected with the New Jersey Railroad Company. I wish to explain the last answer, by saying, that for the last tvvo or three years there has been an arrangement with Adams & Co. to carry for them an express chest by ,this upper route, and I receive what is due to the railroad com¬ pany for that. 1 have nothing to do with the morning Accommoda¬ tion line. For the last few years, since May 1st, 1846, the receipts of the steam towing have come into my hands, and the account for the steam towing is kept in my office, for both ends of the line. The returns for the towing on the Delaware are made to me by Mr. Gatzmer, both the accounts, and the moneys, and the disburse¬ ments, with the vouchers also. The transportation boat, the Trans¬ port, takes a few passengers; I receive the moneys derived there¬ from. These are the principal sources of the receipts coming into my hands. There are some incidental small matters not coming un¬ der these heads, as for example, rents and sales of some small mat¬ ters that are disposed of, nothing of much moment. The rents I refer to are for our wharf property in New York, which we don’t occupy or use ourselves. There is a small amount of steamboat freight between New York and Amboy, which I receive. The charter of a steamboat, or some other incidental source of revenue, may sometimes bring into my bands moneys to a larger extent. Whatever has been so received by me on behalf of the railroad will appear on the abstracts which I return monthly to the agent at Bordentown." I make the disbursements for the running of the boats, both passenger and transportation boats, and the boats en¬ gaged on the New York end in steam towing; also for articles purchased in New York for the use of the road and the shops at Bordentown and South Amboy, and, generally, whatever purchases 145 are made in New York on account of the road. I do not pay any of the engineers, firemen, or other employees on the cars or along the road; all the receipts that come into my hands appear on the abstracts which I return at Bordentown monthly; all the disburse¬ ments made by me appear on the same abstracts. 1 settle my ac¬ counts by making my returns montlily, and by depositing in bank, to the credit of the treasurer, the balance in my bands, retaining sufficient to pay the current disbursements. There are no receipts belonging to the New York end, from the permanent sources I have mentioned, that do not come into my hands. 1 make the dis¬ bursements for bills on the roads and at the shops, by orders sanc¬ tioned by Mr. Stevens, the superintendeitt. The disbursements which 1 make for the current expenses for the boats and for my own office, I make by the general authority I possess as agent. All the disbursements made by me, and returned in my monthly ab¬ stracts, are made for the use and benefit of the railroad company, so far as my knowledge extends. The arrangements adopted for getting in the returns of the various receipts belonging to the rail¬ road company, from the conductors, captains, and other subordi¬ nate officers, arc, as near as possible I believe, such as to preclude the perpetration of frauds on the railroad company. All the receipts of the railroad, which do not come into Mr. CTatzmcr’s hands, come into mine, to the best of my knowledge and belief. All the passengers transported across the railroad, that do not appear in Mr. Gatz- mer’s accounts, appear in mine. The number of way passengers has not until lately been specified, unless liable to transit duty; I do not speak of the passengers by the branch road and the Phila¬ delphia and Trenton railroad, which come through Mr. Morrell. The number of all passengers transported across the road liable to transit duty bavo been specified by mo, in my inotithly abstracts, so far as I know, and as I believe. I have always returned for transit duty all passengers from Amboy to Bordentown, or any other place on the river below that, down to Camden. The books that I have seiit here, and that are now hero before tbo commissioners, are the account books of my office, and they are correct, to the best of my knowledge and belief, and show a true account of all my transactions, as agent of the Camden and Amboy Railroad Company, so far as any money is concerned. I . do not keep two sets of books; it is as much as I can do to keep one. There may be some clerical errors, but they are of very small amounts and unintentional. The company have had in my office. 146 for about two years past, a clerk of accounts, examining my books, vouchers, and papers, with a view to ascertain their correctness: he lias examined them all for several years, I believe from 1834 to the year 1848, inclusive, and has found a few clerical errors, as he informs mo. The name of this clerk is Mr. Hoyt Sanford. The steamboat New Philadelphia has been chartered by the New Brunswick company. I do not recollect when she was charteied, nor exactly what were the terras. I had a memorandum in my office of the time she was used by the New Brunswick company; and lier charter was settled up previous to 1848. By reference to my book, here present, I see that she was chartered, in the year 1847, for four months and seven days, at SIOOO per month. This has been settled. She was also chartered after the burning of the Karitan, in the spring of 1848. They chartered another boat, the St. Nicholas, after the burning of the Raritan, until the New Phil¬ adelphia was fitted up, which was a little more than a month, if my memory serves me. The New Philadelphia then continued to run till they got the new boat, John Neilson, ready, except during the winter, when she was laid up. This charter has not yet been settled, and I do not know of any specific terms on which she was charter¬ ed. I do not know any particular reason why it has not been set¬ tled. I shoiild consider the former charter a large amount for such a' boat at the present time. I think she might have run altogether from ten to twelve months, under her second charter. The Camden and Amboy Railroad Company paid the expenses required to put her in order when she was chartered, but did not pay for any re¬ pairs while the New Brunswick company used her, as far as ray memory seiwes me. 1 think the New Brunswick company did all her running repairs while they had her. I think the cost of repairs we made on her in the year 1848, before she was chartered to the New Brunswick company, amounted to over $7000; I see that is what is charged on the books; some part of it may be for bills pre¬ viously incurred. Sbe was not in as good repair when given up by the New Brunswick company as when they took her; the natural wear and tear would affect her move or less. No very expensive repairs have been made upon her since. We laid out more expense at that time than we should otherwise have done, to fit her for that particular purpose. I should consider, under the circumstances, considering the length of time she was chartered, a considerably less price than her former charter a fair charge. This thing is yet an unsettled account, and is expected to be settled. The steamers Independence and Thistle have belonged to the 147 Camden and Amboy Railroad Company ever since I have known any thing about them; which company has always received their earnings, with the exception of a small unsettled account for work done by them for the New Brunswick.company last year. The In¬ dependence had been previously chartered by the New Brunswick company for short periods, which accounts have all been settled and paid, and, as I considered, at fair prices. As far as I know, the Camden and Amboy company have always received the earnings of their boats. There are no other unsettled accounts of the railroad company against the New Brunswick company, to my knowledge. The amount received from Adams & Co. is at the rate of 84000 per year for one chest, with the privilege of sending a messenger (I think), and there is another chest, for which 1 receive at the rate of 81200 per year; this latter has not been of long standing. Both of these chests go, I think, by ibo upper route. Wliat arrangement the New Jersey company make with them, I don’t know; this compensation is for carrying from New Brunswick to Philadelphia. There was a written contract with them at first, but I believe it has long ago expired, and not been renewed in writing, to my knowledge. The moneys due on Livingston & Co's contract for their express chest, are also paid over to me by Mr. Gatzmer, namely, $80 per month. I have never made any return for transit duty for those trunks. I have not returned the messenger for transit duty. I don’t know that it is the duty of any person to get the weight of the ex¬ press chests or not. No separate passage money was paid for the messenger. Adams & Co’s first express chest began to be run, I think, in October, 1846, and the second chest began to be run in April, 1S49. Livingston & Co. began to run an express chest April 1st, 1847. I think there was no messenger accompanying Living¬ ston & Co’s express chest, and only one messenger accompanying Adams & Go’s two chests. If the messenger accompanying Adams & Go’s express chest should be deemed a passenger liable to transit duty, it would come within the province of the agent of the Philadelphia and Trenton Railroad Company to return him for that purpose, I should think. I don’t know whether the express chests have been returned or not. Mr. Fish may have returned them, or Mr. Shippen, from my abstract. IRA BLISS. Sworn and subscribed, the 2eth day of October, 1849, before the commissioners. Aaron Robertson, Ch’n. Bordentown, Friday, October 2G, 1849. William Cook, at his request, being duly sworn, deposeth and saith—In 1846 and 1847, during the season of poach marketing, a number of trains were required, in addition to the ordinary trans¬ portation trains, which temporarily suspended the operations for repairs for the road, and multiplied the duties of the way transport¬ ation agents to such an extent that the trains got into confusion. In consequence, the superintendent of the road, Mr. Stevens, re¬ quested me to superintend the peach trains, which I did. The transportation was so much increased that extra steamboats had oc¬ casionally to be employed. I bad, during those seasons, an interest with Mr. Stevens and Mr. Buckelew in a peach orchard at Gravel- hill, and it occurred to 'me that if we could have a car load of peaches ready to be hitched on the early passenger train in the morning, it would cause no delay to the train, would relieve the other trains and transportation boats, and might, at the same time, facilitate the forwarding of the peaches to market. I applied to Mr. Stevens on the subject, and asked bim if I could not have a car with crates upon it, have them loaded when the cars came along, and attach the car to the train. As an inducement, I told him the trains were very heavy in the peach lines, and the boats overloaded, and that this would relieve them. He, upon my appli¬ cation, stated be could see no objection to it, as it would detain the train but a minute, and therefore granted my request. No other persons ever, to my knowledge, applied to have a car taken up by the passenger train in this way; had there been any such applica¬ tion, I would probably have heard of it, as I had the management of the peach business. Had any such application been made, it would have been granted, until the accession of extra cars had be¬ gan to impede the passenger train, in which case it would have been discontinued altogether: by our having a car loaded and ready to hitch on, no detention of the train, of any consequence, was caused thereby, and the passenger boat could carry the crates with¬ out any inconvenience, and it helped to relieve the transportation boats. The extent of this business was trifling, it would not ave¬ rage one hundred baskets per day. The passenger boat would haye been able to carry all that the passenger train would have been able to take. I never heard, during that time, of any applica¬ tion to carry peaches by the passenger line in any other manner. The passenger line that I refer to, was the six o’clock through line from Philadelphia to New York. There were two or three regu- 149 lar peach lines running from Bordentown to South Amboy, and one from Hightstown, in the height of the season. The peaches below Bordentown were picked up by the transportation line from Camden, and carried on in that line to Amboy. Occasionally the regular peach lines sent a car down to Kinkora, about two and a half miles below Bordentown, and to Durell’s lane, four miles be¬ low Bordentown, before the hour of starting, to he loaded with peaches, when requested .so to do. Tlie peaches loaded at these places were the property of .Tohn L. McKnight and others. Win. Durell, and John Hitchens. The peaches of any persons that ap¬ plied were loaded at these places, so far as I know. Mr. McKnight had a large quantity there, sometimes loaded a car or two; we should not have sent a car down for a small quantity. The peach trains all started from Bordentown in the afternoon, and arrived at New York during the night or next morning. The peaches sent by us by the passenger train were generally picked in the morning. Peaches picked the afternoon before, and going by the regular peach trains, would get into Now York in the morning, five or six hours before the peaches we sent by the pas¬ senger train the same morning. The peach trains took all the peaches oflered, without distinction of persons, and 1 believe that there never was an instance of any peaches being intentionally lelt behind. There was never any distinction made in the same linc.s. as to the charges for freight from the same points in favour of any individuals; the charges were uniform to all. All the lines from Bordentown carried peaches at the lowest rates. The regular transportation line that came on from Camden, being the last line, charged about one cent a basket higher for freight than the regular- peach trains on peaches taken in at Bordentown, and from thence to Amboy. The reason of this difference was to induce people to bring in their poaches early, so that wo might get all the peaches through to New York hy daylight, if possible. I do not know that there was any other train that carried poaches at a higher rate. For the poaches carried in the passenger trains, we paid the same rate as was charged in the other trains. The rates of freight for peaches on the peach lines, as v/ell as on the transportation line, have been uniform, and in proportion to the distance carried, for the two past seasons. The orchard to vyhich I referred at Gravel-hill, is the same or¬ chard sometimes called the company orchard. The Camden and Amboy Railroad Company own no peach orchard. The station at 150 Gravel-bill is resorted to by other peach growers beside myself and associates. It would have been equally convenient to have hitched on a car loaded by other persons, as to do it with regard to ours. It is not the duty of the owners of peaches to load the cars, but they usually assist. I know of no reasons, either on the part of the railroad company, or on the part of the owners of peaches, why they should not have sent in the same way as we did, other than that no applications of the kind were made. \VM. COOK. Sworn and subscribed, the 26th day of October, 1849, before the commissioners. A.rnoN RonERTSON, CKn. Bordentown, Saturday, October 27, 1849. Hoyt Sanford, being duly sworn, deposeth and saith—1 am clerk of accounts at present in Mr. Bliss’ office, in New York. I have been-there three years last month. My duties have been to ex¬ amine into the details of all the accounts and papers of the office, over the wholeperiod of time the office has been kept. I went there by instructions from Robert L. Stevens, president of the railroad company; the object was to ascertain the accuracy of the accounts and books in the office. I have also reviewed the current accounts, as they have accrued. I examine the original papers on which the entries of the books, both for receipts and disbursements, are founded. I also examined the books themselves, to see that all the sums and amounts are properly extended and added up, and the balances properly cast. I also examined the original papers themselves, to see that all the items are properly extended and footed up. I have found the accounts to be generally very correct, that is their general character. I have found small errors, here and there, in all the years. 1 have found clerical errors, both in the ori¬ ginal papers and in the books, but principally the errors occurred in carrying the amounts from the original papers to the books. Tlie original papers which I examined were for the receipts, the daily way bills, those were the principal; and for the disbursements, the various bills of expense, pay rolls for men employed, bills for pur¬ chase of materials and repairs, indeed all bills of indebtedness of the company, as receipted by the persons to whom the money was paid. The largest error I found, at any one time, was in a bill for coal, purchased of Lang.fe Randolph, twenty-five chaldrons, at 811 per chaldron, the correct amount of which was 8275. No ciphers 151 being appended for dollars in the bill, as extended in figures, it was carried into the books as two dollars and seventy-five cents, so that the agent, Mr. Bliss, was credited with §272.25 less than he should have been; but generally the errors were small. I have kept a debtor and credit account of the errors I have found, the result of which is, for the years 1S35 to 1847, inclusive, which years I have examined complete, S447.85 overcharged in the books, and the under credits amount to §662.82, leaving a balance due the agent of §214.97. The highest amount I found in any one year was •§.359.12; this was the year in which the mistake was made in the coal bill above mentioned. All these mistakes remained undisco¬ vered until I examined the books, as I believe, and ail appear to have been accidentally made. I have been engaged for several weeks past in correcting the books, showing the estimates of ton¬ nage carried through the canal by the Merchants and Swiftsure lines, from 1840 to 1848, inclusive, in connection with Samuel Thomp¬ son and .T. G. Sweet. The entries therein and calculations, so far as made and examined by me, are correct, to the best of my knowledge and belief. My examination of the books in the office of Mr. .Bliss, in New York, has extended to every entry in the books, as far as I have gone. From my knowledge of the business of the companies, I believe that all the business that belonged to that office has gone into the books examined by me. I have been familiar with the business of the companies, more or less, for many HOYT SANFORD. Sworn and subscribed, the 27th day of October, 1849, before the commissioners. Aaron Robertson, CKn. Bordentown, Tuesday, October 30, lS49. ./. Gilbert Sweet, being recalled, further, on his oath, says—Since my last examination, Samuel Thompson and myself have gone over the estimations and calculations of the business of the Merchants •and Swiftsure lines, from 1840 to 1848, both inclusive, for the pur- ])Ose of producing greater uniformity than had been observed in the selection of manifests for examination; and we have been very particular in selecting them in accordance with certain fixed dates in each month, namely, the manifests occurring on or nearest after the Ist, 7th, 13th, 19th, and 25th days of each month, respectively, in each line, each way, making twenty manifests examined for each month. AVhenever business was done equally through the month, it occurring sometimes that there would be no manifests until the 8th or lOth of the month, our estimates do not produce a result materi¬ ally different from those which had previously been made. By tak¬ ing the estimates of each year by themselves, and thereby calculat¬ ing the tonnage of each year by itself, we obtain a general result of 389,955 tons carried during the nine years aforesaid; from which, if we deduct the amount returned during those nine years by the collector, namely, 370,518 tons, there will remain a balance of 19,437 tons deficiency. If we also take into consideration the fact, that a good deal of inferior merchandise, lime, clay, brick, manure, &c., has been carried during that time, which has gone into the general estimate of superior merchandise, and which will without doubt exceed the amount of 20,000 tons, the amount of superior merchandise would seem to have been all returned, so far as it relates to the aggregate number of tons for the whole nine years, notwith¬ standing the number of barges which have been omitted by the collector, in making his returns to the treasurer of the canal com¬ pany. If we take these omitted barges by themselves, and ascer¬ tain their separate tonnage, wo find that it amounts, after deduct¬ ing the collector’s supplementary return of March, 1847, to 76,265 tons, to which is to be added 3623 tons of iron, and 1532 tons of coal, not embraced in the regular manifests, but sent by special arrangement, we have a deficiency of 79,888 tons of superior mer¬ chandise, and 1532 tons of inferior, amounting, at eight cents per ton for the former, and two cents per ton for the latter, to 86421.68. The difference between the deficiency, as shown by taking an esti¬ mate of the whole business from what it appears by taking an esti¬ mate of the omitted barges, shows that for the.barges returned by the collector, his estimate has exceeded the real amount to a con¬ siderable extent; and, from an examination of a great many parti¬ cular cargoes, I can say with confidence, thatalthough there are instances in which the collector’s estimates are too low, yet in the main they are considerably too high; and in many cases they are so in a very marked degree, amounting, in some cases, to nearly double the amount carried, and in many cases from ten to twenty per cent. The collector could not make an accurate estimate of the cargo of a boat from the toll lists sent to him; the reason is, that the toll lists do not go into a detail of the articles. I believe the books of estimates and calculations, now submitted to the commissioners, to be correct, except here and there a figure. 153 perhaps, not varying the general result a ton. They show the whole number of barges and other vessels that actually carried merchan¬ dise for the Mei'chants and Swiftsune lines- for the nine years in question; showing also the barges that were returned by the col¬ lector, and those not returned, the amount of through freight of each barge, the amount of tons returned by the collector, and the estimates made by ns. Some several barges carried coal and iron, that are not named in the books, but the amount is put down on the general statements. In reference to what 1 stated, on my former examination, in re¬ gard to making out the toll lists, I will now say more particularly, that it has only been for the present year that we have made a careful estimate of the weight of the difl'erent cargoes, and stated the gross amount of the tons on the toll list. In the latter part of the year IS-IS, we put the amount of tonnage on the toll lists; but the mode of ascertaining it was not by a detailed estimate of the articles on hoard, but by the opinions of the captain, as to how much he had aboard, or a general idea that I had myself As to the amount of iron and coal not contained on the reguhir manifests, I derived my information from Samuel Tliompson. The reason why we have revised the books of estimates since my for¬ mer examination, is because we observed that the selection of the manifests had not been uniformly made in accordance with the rule adopted. The present estimates and statements show the result of each year by itself The estimates made by me lately, were some¬ times above those made by the collector; in a few instances they were as high as ten or twenty per cent. Discrepancies between my present testimony and that of other witnesses, as to the results of the examination, may be explained by the more particular manner in which the present books have been made out, not that any more care W'as exercised, or any dif¬ ferent principles adopted, but that a different selection of manifests was made to correspond more exactly to the particular dates. BonoENTow.N', October 31, 1849. ./. G. Sweet resumed.—On my examination in September, in re¬ ference to the dates of the manifests selected for estimation, it v/as found that those taken by us did not correspond in every instance, as inserted in the statenient book, which we made up to the dates which we wore 'ordered to select. My testimony was then closed for the time, and I was ordered to prepare new books, wdiich has 154 been done, as before stated, and are now presented. These books show, as the former ones did, the barges sent by the Merchants and Swiftsure lines, the amount of their freights, the collector’s returns of tonnage for each barge, and the estimates made by us. When 1 stated,' in my first examination, that in estimating the tonnage of general merchandise by the amount of freight whose weight was not known by other means, we made the estimates according to our own recollection of the current rates of the year, I do not mean that we depended entirely on our own recollection. We had before us memoranda of those rates. ' J. GILBERT SWEET. Sworn and subscribed, the 31st day of October, 1849, before the commissioners. Aaron Robertson, Ch'n. Bordentown, Wednesday, October 31, 1849. SamuclJ'hompson recalled,and testified as follows.—I have as¬ sisted Mr. Sweet in making the new books of estimates. They differ from the former ones in the selection of some of the mani¬ fests for examination. A different selection of some of the mani¬ fests was made, in order to adhere rigidly to the arbitrary rule originally laid down, of taking the manifests that occurred on the 1st, 7th, 13tb, and 25tb days of each month, or the nearest mani¬ fests after those days, respectively. This was done for each line each way, making twenty manifests examined for each month, and constituting probably one-third of the whole. The object of doing this was to get at the average rate between the freight and the ton¬ nage. Mr. Sweet made the.new estimates that were required to be madeTo reconstruct the statement contained in the books. I as¬ sisted in making up the calculations and statements which accom¬ pany the books; they are correct, to the best of my knowledge and belief. The calculations are made year by year, both of the aggre¬ gate tonnage and the tonnage of the barges omitted. According to the estimates which we thus made, we found the tonnage of the omitted barges, after deducting the supplemental returns of March, 1847, to amount to 79,888 tons of superior merchandise and 1532 tons of inferior merchandise, the latter being coal; but in the amount put down as superior merchandise, there is probably a considera¬ ble of inferior, mixed in the manifests with superior merchandise. The results of the books of estimate, as thus reformed, difi'er 155 sliglitly from those first made, but the general result is much the same. I believe that the amount above stated is a very accurate estimate of the amount of through merchandise transported in the barges of the Merchants and Swiftsure lines, which the collector, during the nine years aforesaid, from ISiO to 1S48, both inclusive, omitted to enter in his books, and to return to the treasurer of the canal company. By through merchandise, I mean the merchandise transported from one end of the canal to the other. On thinking over, since my former exatnination, the amount of inferior mer¬ chandise carried in the merchants and Swiftsure barges, 1 have be¬ come satisfied that the estimate I then formed of it was small, and within the truth. From the examinations I have made, and the calculations that have been made on those examinations, I am in¬ clined to think that the number of tons of superior merchandise returned by the collector, during those nine years, have equalled, or nearly equalled, the actual amount of superior merchandise transported by the Merchants and Swiftsure lines in those years. 1 believe that the method we now pursue to ascertain the amount of tonnage sent in each barge, is a very accurate one, and that the toll lists which wo send to the collector may bo relied on by him, as showing the true amount. It is true the collector has to take our estimate for granted, unless he chooses to examine the cargoes himself. I now speak of our own lines. Whether the method would be a safe one for the collector in the case of other lines, is perhaps doubtful. They might not observe the same accuracy that we do. The toll lists themselves, as at present made out, do not contain a sufliciontly detailed description of the cargo to enable the collector to test the accuracy of the estimate of the tonnage of the cargo, which is set down in gross on the toll list. We have not changed our system of making up our manifests, as it respects carrying out the weights of ai;ticlcs; ive only carry out the weights in a few instances where the shipper gives them to us, or when wo weigh them for the purpose of charging by weight. We have a platform scale at the wharf in Philadelphia; we have had it four or five years. There has been no alterations made in any of the collector's books tills last summer or fall, or at any other time, to my know¬ ledge; they stand as they did before. The estimates and examina- • tions were made by getting together the original manifests from tho transportation offices in Philadelphia and New York, and compar¬ ing them with the collector’s books; and fi'om that examination the 156 slatementB were made up which are produced before the commis¬ sioners. These statements have been entered in bound hooks, rather than in loose papers, for the use of the commissioners, as a matter of convenience. The commissions of myself and others, as agents, depend upon the amount of freight charged, and are made up from those freights, as they appear on the -hooks, and it is therefore our interest that all the freight should appear on the books. Manifests furnished to the custom house do ifot always contain a very detailed description of the cargo. They are something of the form of the toll lists which I have described, and, in addition to that, they do not always contain the whole amount of any particu¬ lar article contained in the cargo, even when they specify that kind of article, inasmuch as the clearance at the custom house has to be made before two P. M., and the boat may continue loading till night, and receive more of the same article on hoard; for example, our custom house manifest might contain 500 bags of coffee, and the cargo might contain 800 bags, 300 being taken in after the clearance was taken out. Frequent instances of this kind have un¬ doubtedly occurred; but in all these cases the whole amount would be exhibited by the manifest of the boat, and taken into account in the toll list furnished to the collector of the canal. SAMUEL THOMPSON. Sworn and subscribed, the 31st day of October, 1849, before the commissioners. A.vkon Robertsox, Clin. Bordentown, Thursday, November I, 1849. James Morrell, being duly sworii, deposeth and saith—T am se¬ cretary of the Philadelphia and Trenton Railroad Company; I have been such since 1833 or 1834. I keep the books of the company. I settle with the treasurer of the New Jersey Railroad and Trans¬ portation Company, monthly, for the business (passenger) conduct¬ ed on the upper route, by Trenton and New Brunswick, in which the Philadelphia and Trenton Railroad Company, the Camden and Amboy Railroad Company, and the New Jersey Railroad Compa¬ ny are jointly concerned. That business is conducted, on the part of the Philadelphia and Trenton Railroad Company and the Camden and Amboy Railroad Company, through my office. There are two lines a day each way, Sundays included, starting, at present, at nine o’clock in the morning, and four and a half o’clock in the afternoon. 157 from both cities. Sunday morning it starts at seven o’clock from Philadelphia; this is by a recent arrangement. The tickets for these lines, for the Philadelphia end, are issued daily from my office. The usual route is, by steamboat between Philadelphia and Tacony, by the Philadelphia and Trenton railroad between Taco- ny and Trenton, by the Camden and, Amboy branch road between Trenton and New Brunswick, and by the New Jersey road be¬ tween New Brunswick and Jersey City. The tickets for passen¬ gers leaving Philadelphia are usually sold on board of the steam¬ boat before reaching Tacony, by the captain and clerks. Tickets are issued to them for the purpose in the morning. If passengers get in by the way, the conductor sells them tickets, being furnish¬ ed with an assortment for that purpose. The routine of the return train, so far as I understand it, is much the same. Tickets given to passengers destined beyond New Brunswick, are taken up by the conductors of the New Jersey railroad. A way bill is niade out in dupliciite on the boat, as the tickets arc sold, showing the name of the passenger and the amount of the fare. One of these way bills is returned to my office, and the other is sent on with the train. The passengers getting into the train by the way, going beyond Trenton-, are entered on the way bill by the conductor. When tlto conductor returns with the next train, ho makes up a separate way bill for passengers between New Brunswick and Philadelphia. He returns this way bill, and the money it calls for, with the through way bill coming from New York. Our conductor only goes as far as Now Brunswick. The trains are carried by our loconiotive.s as far as New Brunswick. The boat which leaves Philadcdphia at nine o’clock returns with the passengers brought by the nine o’clock train from New York, and the same with the afternoon trains. When the boat returns, the other duplicate of the way hill sent on to New York is returned to my,office, with the money it calls for, and wo at the same time receive the way bill coming' from New York with the train that started at the same time from that city. -■Vt the end of the month wo settle with the New Jersey Railroad Company, and divide the money according to the contract, I rc- ' ceiving the .shares of the Philadoljihia and Trenton railroad and the Camden and Amboy railroad. I then settle with the agent of the Caniden and Amboy railroad, and pay him their share of the amount, according to the contract. At these monthly settlements, a statement is made on paper showing the result of the month’s business and the division of moneys between the companies, i give this statement to the agent of the Camden and Amboy Rail- . road Company, after copying it in a book for the use of the Phila¬ delphia and Trenton Railroad Company. These monthly state¬ ments exhibit a true account of the business of those lines, to the best of my knowledge and belief. They contain a correct division of the moneys between ,the companies concerned, according to their contracts, to the best of my knowledge and belief, and the correct amount is regularly paid over to the Camden and Amboy Railroad Company, generally immediately after the settlements are Passengers transported in these lines on the Philadelphia and Trenton railroad alone, or on the New Jersey railroad alone, are not brought into these accounts or statements, and the proceeds of passengers transported on the Camden and Amboy branch road alone, between Trenton and New Brunswick, are all paid over to the Camden and Amboy Railrpad Company. The proceeds of way passengers transported on any two, or all three of the roads, arc divided according to the distance transported by each company, respectively. The through fare has been four dollars until lately; of this amount the New Jersey railroad received one dollar, the other two companies received three dollars, which was divided ac¬ cording to the distances carried. These are passenger lines alto¬ gether, carry no freight. I am required to return to the treasurer of the Camden and Amboy Railroad Company the number of pas¬ sengers transported across the branch road between Trenton and New Brunswick in these lines, in order, 1 presume, to enable him to return them to the state for transit duty. I make these returns quarterly; I make them on ray affidavit; I was desired to do so by the treasurer of the Camden and Amboy.Railroad Company. 1 derive the number from the daily way bills, and my returns are correctly made, to the best of my knowledge and belief. The re- . turns now on the table of the commissioners are the returns referred to; they have been made ever since the connection between the said roads, in reference to these lines, has existed. We pay the Camden and Amboy Railroad Company ten thou¬ sand dollars per month for the use of their steamboats, locomotives, oars, and machinery. We formerly, when we ran up to Bristol with the boat, sometimes paid them more, when there was heavy travel; in one instance as high as eighteen thousand dollars per month. Since we have run from Tacony we have always paid ten thousand dollars per month. When the trains ran the eastern side of the river from Camden, wo paid tliem tliree cents per mile per passenger, at one time; and afterwards, from the 1st of July, 1843, till we ceased to run on that side, we paid them diifereut stipulated fares for different places; which correspond, as nearly as we could get at it, to their fares for the same places. While we were paying three cents per mile per passenger to the Camden and Amboy Railroad Com¬ pany, wc lost money on the way passengers, because we paid more for their transportation than we got from the passengers. The oc¬ casion of our running the lines on this side of the river was our building bridges, and making other repairs on our 7'oad. As we had to keep up our part of the line, we were obliged to pay the Camden and Amboy Railroad Company for the use of their road for the time being. The repairs done to our own road are paid by us. The engineer of the Camden and Amboy railroad is the en¬ gineer of our road also, and generally certifies the bills. The pay rolls are usually certified by the siiperintendcnts of the gangs. Capt. Shippen sometimes pays bills to the men, and returns them to Mr. Gatzmer, who receives the amount of them from me. The annual expenses of our company, independent of what it pays to the Camden and Amboy Railroad Company, are not very heavy. From my knowledge of the business of the our company, I should say that, in my judgment, it is very economically conducted. The Camden and Amboy Railroad Company arc regularly informed of the correct amount of net profits made by our company. Tliere is an e.xpi’ess chest carried over our road for Adams A Co. The Philadelphia and Trenton Railroad Company has never received any part of the compensation for carrying it. ] believe a messenger goes with the chest; 1 do not know whether he is re¬ turned for transit duty or not; if ho pays he is put down as a pay- passenger, and is regularly returned ; if he has a free ticket, no no¬ tice is taken of him ; and I don’t know how the fact i.5. The free passengers of the Camden and Amboy Railroad Company are ge¬ nerally free on our road. The proceeds of the way lino beuvoeu Trenton and Philadelphia, over onr road, is all received by us. The compensation to the Camden and Amboy company, for the use of , their road between the Delaware bridge and tho depot at Trenton, by this line, as well as in the other lines, is _ included in the ten thousand dollars per month before spoken of. The use of the steamboat for this line between Tacony and Philadelphia, is in¬ cluded in the same ten thousand dollars per month. We pay the Trenton Delaware Bridge Company separately for all the passen- gers that we pass over it in our cars. The Philadelphia and Tren¬ ton Railroad Company purchased 900 shares of the capital stock of the Trenton Delaware Bridge Company from the Camden and Amboy Railroad Company. We paid them for it. The Philadel¬ phia and Trenton Railroad Company laid the track over the Tren¬ ton Delaware bridge, as I understand it. The United States mail is carried over our road every day, twice one way, and once the other. One mail is carried entirely over the Camden and Amboy Rail¬ road Company’s road from Camden to New Brunswick. One- fourth of the contract therefor is paid to the Camden and Amboy Railroad Company first, the other three-fourths are divided between the two companies, according to the distance carried by each. The contract is in the name of the Philadelphia and Trenton Railroad Company, and the money is received from the government by that company ; and after being received, is divided as before stated, and ■the Camden and Amboy company’s share paid over to them quar¬ terly. The contract is to carry the mail between New Brunswick and Philadelphia four times a day, for $4,300 per quarter, or 817,200 per annum, payable quarterly. The government have the privilege of sending a mail agent free with the mail bags, who goes in the mail car. I think we are also required to carry the postmaster ge¬ neral and special mail agents-free, when on business of the depart¬ ment. The mail agent has a car or department to himself. I make no return of either passenger or freight for transit duty for the United States mail. I do not reckon the mail or the express chest ns freight. Excursion passengers I have always doubled before returning them, until the 31st March, 1848, inclusive, when Mr. Stevens, the treasurer of the Camden and Amboy Railroad Company, wrote me to return them separate by themselves, prior to which time they had'been returned mixed with the other passengers. When I after¬ wards returned them separately, as 1 did in a column by themselves, I returned them singly, leaving it for Capt. Shippen to double them. We sometimes sell excursion tickets from Philadelphia to New Brunswick, Rahway, Elizabethtown, and Newark, and back, and we include them in the general column of excursions singly. For¬ merly they were put down with the regular passengers, but doubled. The stock held by the Delaware and Raritan Canal and Camden and Amboy Railroad Companies, in the Philadelphia and Trenton Railroad Company, is represented by the persons in whose names it is held, who are the presidents of the Camden and Amboy Rail- 161 road Company and the Delaware and Raritan Canal Company, re¬ spectively. The stock so held by them is held by them in trust, as I understand it, for the joint companies. The stock stands in their joint names. The dividends are paid toi the order of the treasurer of the Camden and Amboy Railroad Company. The dividends for the last few years have been eight per cent, per annum, which have all been paid over semi-annually, as they have been declared. We draw an order in favour of each of our stockholders, separately, on the Camden and Amboy Railroad Company, for the difference between our dividends and theirs, so as to equalize the dividends of the stock of both companies. This difference has been two per cent, every six months for some time past. The Philadelphia and Trenton Railroad Company have never made any loans, except temporarily, during the construction of the road, which were paid shortly afterwards; neither does the com¬ pany owe any debts, except some unpaid current bills. They own a considerable valuable real estate in the city of Philadelphia and other places, which they paid for out of their capital. The capital of the company is $999,200, divided into 9992 shares, at one hun¬ dred dollars each, which are all paid in full. The stock had all been paid up when the Camden and Amboy Railroad Company became the owners of the stock they now hold. J. MORRELL. Sworn and subscribed, the Ist day of November, 1849, before the commissioners. Aakon RobebtsoN, Ch’n. Bordentown", Thursday, November 1, 1849. Capt. Richard Shippm, being duly sworn, deposeth and saith— 1 make up the general abstract book, which is before the commis¬ sioners. 1 am connected with the Camden and Amboy Railroad Company, and have been since the year 1831. During the con¬ struction of the road, I was paymaster, and kept the construction accounts between Gravel-bill and Camden. Gravel-bill is about half way between Hightstown and West’s turnout. Capt. Thomas A. Conover acted in the same capacity between Gravel-hill and South Amboy. Capt. Conover is now a post captain in the United States navy, and is at this time in the Mediterranean. His portion of the road was about 17 miles, and mine was about 44 miles. After the road was finished, I commenced as superintendent of the travelling department, and have been engaged in that capacity ever 182 since, in addition to which I was continued as paymaster of the current'expenses accruing along the road; and I have also acted as the agent of the treasurer of the railroad company, in receiving the monthly railroad accounts and statements from the receiving agents in New York and Philadelphia, and entering them in the general abstract book, mentioned in the beginning of the present examination, I also act as the treasurer’s clerk, in making up his accounts and keeping his book. I also act as paymaster at the shops on the route of the road, and have acted in that capacity at the shops at Bordentown, since they were established, in the latter part of 1831. It has always been part of my duty to make up the quarterly returns, to be made by the treasurer of the railroad company to the state treasurer for transit duty. The general'abstract book, to which I have alluded, contains the entire contents of the monthly abstracts or statements, rendered to me by the agents in New York and Philadelphia, before spoken of. The current receipts and disbursements of the railroad company all pass through the hands of the two agents of the company at New York and Philadelphia, except the disbursements made for the transportation account, which pass through the hands of the transportation agents. The result, however, of all the current re¬ ceipts and expenditures of the company comes into the accounts of the two principal railroad agents in New York and Philadelphia, who are at present Mr, Bliss and Mr. Gatzmer. Mr. Bliss has been the agent in New York from the commencement. In Phila¬ delphia, Wm. J. 'Watson preceded Mr. Gatzmer as agent. The general abstract book is intended to present the whole current bu¬ siness operations of the railroad, both as to receipts and expendi¬ tures, and does so, to the best of my knowledge and belief It is also intended to present the number of passengers and the number of tons of merchandise transported across the railroad liable to transit duty. It also exhibits the amount of way merchandise trans¬ ported not liable to transit duty. To the best of my knowledge and belief, all the passengers and all the merchandise transported over the road liable to transit duty, up to the first day of July last, have been returned-to the state treasurer for transit duty. The return for the quarter ending the first day of October, last' past, has been made up, but not yet re¬ turned to the state treasurer. I mean that the regular and supple¬ mentary returns embrace the whole. The intention always was to return at the end of each quarter, all that belonged to that quarter. Errors and omissions have been corrected, and embraced in subse¬ quent returns. Those errors and omissions have in no case been intentional, but altogether accidental, on my part. I wish to be understood that they have always originated from unintentional inaccuracy on my part, and that no one else is re¬ sponsible for them. Mr. Edwin A. Stevens, the treasurer of the railroad company, was always particular to ask me, before the quarterly returns were sworn to, if I was positive as to their accu¬ racy, and he always required gi-eat care to be taken in that respect. The disbursements made by me, on account of the railroad, arc fairly made, to the use and for the benefit of the railroad company, and for no other purposes. I receive my funds of the company, from Mr. Gatzmer, with which 1 make my disbursements. I return him my vouchers on or about the last day of each month. The only moneys I receive on account of the railroad company are those re¬ ceived for way fares between Trenton and Bordentown, in the summer season. These moneys are returned to me, and I make a monthly return of the amount to Mr. Gatzmer. I have resided in Bordentown since 1831. The railroad was finished from Borden¬ town to Hightstown in October, 1832. Friday, November 2, 1849.—And horse cars were first run on that portion of the road the 20th day of October of that year, pas¬ sengers being taken from thence in stages to Price’s point, on the Raritan river. On the 17th of December, 1832, the road was com¬ pleted from Bordentown to Amboy, so as to run a line of horse cars through. AVhen winter came on that season, and the Delaware was closed, we came with horse cars from Amboy to the Sandhills, and carried the passengers from thence in coaches, by tvay of Tren¬ ton bridge and the Philadelphia and Trenton turnpike, to Philadel¬ phia, going through with the cars to Bordentown, whenever the river was open so as the steamboats could run. In September, 1833, we commenced to run the trains with locomotives between Amboy and Bordentown, and, as the road was finished from point to point below Bordentown, we continued to run the trains, when the navi¬ gation of the river was obstructed, to the farthest point at which the road was finished, for the time being, and from thence to Cafn- den by stages. This was continued through the winter of 1833-4, at all times when the navigation of the river to Bordentown was impeded by ice. When the river was open, the steamboat took the passengers to and from Bordentown. The road was so far com- 164 pleted to Camden in August or September, 1834, that locomotives were enabled to run to Camden; a great deal of the road, however, being temporary, and not completed. In the summer seasons the steamboats always ran to Borden- town, and, I think, carried the principal passengers. The object of laying a temporary track through to Camden, was to he able to carry the passengers through that way, whenever the steamboats could not run. Locomotives were used for conveying materials for the construction of the road prior to September, 1833, as early as the month of March in that year. The first lines that were started in connection with the Philadelphia and Trenton railroad were transported between Trenton and the Sandhills in coaches; this was commenced in the fall or winter of 1836, and was continued in that way until the branch road was constructed between Borden- town and Trenton, which was finished, and begun to be used, in ■January, 1838. About the 1st of January, 1839, the branch road was completed from Trenton to New Brunswick, and the line by that route was commenced in connection with the Philadelphia and Trenton Railroad Company and the New Jersey Railroad and Transportation Company. In making up the quarterly returns for passengers for transit duty, I derive the number of passengers transported across the branch road between Trenton and New Brunswick, in the lines run in connection with the companies last aforesaid; from returns made to me by James Morrell, secretary of the Philadelphia and Trenton Railroad Company, which are made under oath. The number of passengers transported across said branch road, by the Camden and Amboy railroad itself, I derived, at first, from the way bills, and afterwards from Mr. Gatzmer’s re¬ turns. I derived them from the way bills for the morning accom¬ modation line from Trenton to New York, as long as that line con¬ tinued, which commenced the latter part of April, 1847, and con¬ tinued until the establishment of the morning accommodation line from Philadelphia to New York, which was commenced in Sep¬ tember, 1848. The passengers transported in the latter line I have received from Mr. Gatzmer’s returns. To the best of my know¬ ledge and belief, the treasurer’s account hook of the Camden and Amboy Railroad Company contains a true account of all the re¬ ceipts and disbursements of the company, or, at least, the net re¬ sult of all; the net current receipts, after deducting the current disbursements, being entered in his hook, and charged to his ac- 165 I assisted in making up the supplemental return that was made to the state treasurer in 1842. It was made up from the original way bills, to the best of my recollection. I am perfectly satisfied that that return embraced the whole number of way passengers and weight of way merchandise declared dutiable by the legislative resolution of 1842, which had not been previously returned, as our instructions were to embrace in it all that could by any possibility be construed to be within the resolution; and I know that we took great pains, and worked a long while, to make it perfect and com¬ plete, and I believe it is so. We were governed by the same principles, in making out that return, by which the officers of the company have ever since been governed in determining what pas¬ sengers are dutiable, including all that passed over the road be¬ tween Bordentown and Amboy, no matter where they came from or where they went to, and the same, I believe, with regard to the merchandise. The same instructions were given with regard to merchandise as with regard to passengers. I have always received the weight of merchandise liable to transit duty monthly; I re¬ ceive it in one entire amount from Mr. Gatzmer. I knew nothing about the details of making it up. I have always supposed it was returned on the same principle as the passengers. The excursion passengers on the Camden and Amboy railroad are always entered by me single in the general abstract book, as returned to me. They pay but for one ticket, and are entered as a single passenger. This method of returning excuision passengers has led me into a small error, several times, in making up the returns for transit duty, from my omission to double them. I have been led into the same error, in the same manner, with reference to the excursion passengers by the Philadelphia and Trenton line, in two instances. They were returned by Mr. Morrell double previous to March 31st, 1848. I wrote to Mr. Morrell to return them in a column by themselves, singly, and I would double them, as some confusion arose in making up my returns. The supplemental return, embraced in the regular return of the 30th June last, a statement of which is before the commissioners, embraces all the omissions that have been previ¬ ously made, so far as I have been able to discover after a conside¬ rable labour and examination, and all to which my attention has been called in any way. All the entries in the book kept by me, and called the construction book, are for payments actually made for the construclion of the road, and exhibit a true account of those 166 payments, and the moneys received by me therefor, to the best of my knowledge and belief. The supplemental return of 1842, in the book of returns from the treasurer of the Camden and Amboy Railroad Company to the treasurer of the state, now before the commissioners, is a con ect copy of the return made at that time, in pursuance of the joint re¬ solution of the state legislature, passed in March of that year, and to which I have herein before referred; and the returns contained in that book are correct copies of the quarterly returns made by the treasurer of the railroad company to the state treasurer. RICHARD SHIPPEN. Sworn and subscribed, the 2d day of November-, 1849, before the commissioners. Aaron Robertson, CKn. Bordentown, Thursday, November 8, 1849. George -W. Aspinwall, being duly sworn, deposeth and saith—I reside in Philadelphia, was formerly engaged in the transportation business through the Delaware and Raritan canal. The first ar¬ rangement was made in January, 1845. 1 had been engaged previ¬ ous to that in the transportation between Philadelphia and New York, by steam, by sea, in vessels of large burthen; this was car¬ ried on until during the winter of 1844-5, when overtures were made, on the part of the canal company, to transfer that business, and my capital invested in it, through the canal. The canal compa¬ ny, having already an arrangement with a line of barges belonging to the New Brunswick Steamboat and Canal Transportation Com¬ pany, which ran between Philadelphia and New York, offered the route between Philadelphia and Albany, on which route the New' Brunswick company had an imperfect line running, doing but a very small business. After satisfying myself that by the introduc¬ tion of fresh capital, and believing that the trade could be greatly augmented, I agreed to accept their proposal, provided their rates of toll should be so moderate as to give a fair chance of success. The contract between us was made in January, 1845, and every preparation made that winter for the opening business in the spring. Mr. Edwin A. Stevens, during the progress of the .nego¬ tiation, very fairly apprized me of the meagre success which had attended the efforts of the New Brunswick company in diverting the trade by that routebut I, having satisfied myself that a combi¬ nation of interests connected with the trade could be effected, em- bracing the northern, eastern, and western trade, whicli would make it sulBciently compensatory to undertake the arrangement, it was completed. This arrangement was made to "last to the Slst December, 1851. The terms were seven and a half per cent, on the freights charged for coal, and ten per cent, on the freights charged for merchandise. We were to have all the facilities enjoyed by the New Brunswick company. I had several associates connected with me interested in this line. No persons connected with the joint com¬ panies '(railroad and canal) or with the New Brunswick company were interested in our line. We commenced running the line in the spring of 1845. The large iron steamers, which we liad used by the outside passage, were altered to conform to the locks of the canal. We caused new barges, of the largest capacity that could he used in the canal, to he built, to he towed by these steamers. We also procured other steam vessels, and chartered other barges, establish¬ ed our agencies in Philadelphia, Albany, Troy, and other place.s, and were ready to augment our facilities with the increase of the trade. We soon found that these facilities for transportation pro¬ duced the desired effect; our business so greatly increased that we were induced to put on a line of tow boats to run between Alhany and New Brunswick direct. We continued to increase our force through the canal during the whole period that we run under the contract, iind I think we had at some periods as many as twenty vessels and steamers employed. We had, up to the last moment, abundant reasons to be entirely satisfied with the entciprize. [ think I may say with truth, that the great success of the line which wo established was mainly owing to the great e.xcrtions we made to secure the western trade, by way of Albatiy, by giv¬ ing through bills of lading to poitits cxtenditig far beyond the ex¬ tremities of our line, and by securing certainty, frequency, and speed in the transportation of merchandise. We also induced the insurance offices of Philadelphia to insure goods bv our lines, at moderate rates, through to their places of destination. To our great care in selecting men, and to freedom from accidetits, I at¬ tributed much of the popularity of our line. In this way we rapid¬ ly built up a large business, and greatly increased the amount of transportation on the canal. In the winter of 1847-8, a company was incorporated by the le¬ gislature of New Jersey for the express purpose of tran.sporting merchandise on the route which we occupied, and commenced their operations in the spring, under the name of the “Commercial 168 Transportation Company.” This line was started in direct opposi¬ tion to us, and was materially diminishing our business, which we deemed in direct violation of the understanding had with the canal company, at the time of making the arrangement with them, and without which understanding we should not have invested our cap¬ ital. This understanding was, that > they should protect us in our trade, as far as lay in their power, provided we did the business to the satisfaction of the public and their own. We therefore claimed this protection, and the Commercial company was importuning for special privileges in their own behalf, in order to compete with us. There was at that time no necessity for another line to meet the trade; our line was constantly keeping pace with the increase of business, and at low rates of freight. The canal company were in a dilemma, desiring to perform their honourable engagements with us, and not wishing to disappoint the Commercial Transportation Company in the preparations which they had made. In this exi¬ gency, and after several interviews with the officers of the canal company, we resolved on a proposition to give up our contract, involving what we deemed a pecuniary sacrifice. Our proposition to ,the canal company was based on no sacrifice to them nor the state. We proposed that if they would, for the unexpired period of the contract, pay us the difference, year by year, between the full tolls according to their published toll list, which would accrue from our business, assuming that of the year 1847 as the basis, and the tolls which we were to pay by our contract, we would relin¬ quish our contract; which difference we showed to be, for the year 1847, the sum of $7300, or thereabouts. To this proposition they assented, it being understood that the Commercial Transportation Company were willing to purchase our line of barges, and we to become stockholders with them. The arrangement was consum¬ mated, to take effect from the 1st May, 1848; and thereafter the combined Commercial line paid the regular tolls for the whole season, except on articles not enumerated in the toll list, on which they paid twenty-five per cent, of the freight. The result of the year’s business, notwithstanding this, showed that the arrangement was advantageous to the canal company, which received into its treasury, after deducting the stipulated yearly payment to us, a larger amount of net tolls than would have accrued from the same business under our arrangement. 1 had, before the rescinding of the contract, represented to the canal company that that would be the result. ,The manifests of our own line, before the commission- 169 era, contain a statement of the whole property transported in our line in the years 1845, 6, and 7. If our lines carried any goods during those three years, not contained in these manifests, we got no freight for them. When the arrangement with the Commercial company was com¬ pleted, in 1848, they took all our barges, except tlii-ee or four of the most indifferent ones. These we sold off as we got opportunity, using them in the meanwhile for transporting coal principally, and paying the regular tolls, without interfering with the business of the Commercial company. We continued paying tolls under our con¬ tract, until the 1st May, 1818, after which we paid the full tolls, according to the toll lists, for what little business wc did. The book before the commissioners, containing statements and settlements with the canal company, is one of our books, and contains correct copies of the settlements made, showing the tolls paid, and is accu¬ rate, to the best of my knowledge and belief. The amount the ca¬ nal company were to pay to us for rescinding the contract, was the yearly sum of $7295.42, for four years, with interest. No bonds were given to me by the company; they positively declined giving any. The obligation to pay was contained in the article rescinding the contract, and upon that, alone, rests the claim against the com¬ pany. It is now, and always has been, ray opinion that the rescind¬ ing the contract, in every point of view, was advantageous to the canal company. I am also equally clear that the original contract with us was also advantageous to the canal company, and for their interest to make. We never availed ourselves of the privilege, guarantied by our contract, of transporting goods on onr own account to New York, but to a very limited extent, a few barge loads. We did not furnish Mr. Degraw, the canal collector, with any estimate of the weight of superior merchandise carried by onr barges, at the monthly settlements. They contained the amount of freights charged, and the tolls calculated therefrom. Our barge.s carried a considerable amount of iron fi om Bristol, but it all ap¬ pears in the manifests, as also railroad iron carried from Trenton. GEORGE W. ASPINWALL. Sworn and subscribed, the 8th day of November, 1849, before the commissioners. A.iuon Robertson, Ch’n. 170 BobdentowiV, Tuesday, December 6, 1849. Jdhn B. Hill, being duly sworn, deposeth and saith—The atten¬ tion of witness being called to an item of $10,297 tons, 2 cwt. 1 qr. 7 lbs., as the amount of inferior merchandise transported through the canal, as liable to transit duty for the quarter consist¬ ing of the months of April, May, and June, 1841, which duty is found in the account of the treasurer of the canal company of mer¬ chandise liable to transit-duty, says, the entry was made by me. I was at that time a clerk of Mr. Neilson, the treasurer of the canal company, and was in the habit of making entries in his book, and footing up the amounts. I find now, on an inspection of the hook and the items which go to make up this amount, that it should have been 29,297 tons, 2 cwt. 1 qr. 7 lbs., instead of 10,297 tons, 2 cwt. 1 qr. 7 lbs. It is evident, to my mind, that the mistake oc¬ curred in adding up the sums that belonged to the amount. I made the addition. The original separate items are in Mr. Neilson’s hand¬ writing. The mistake, so far as either he or I was concerned, was entirely inadvertent and unintentional. JOHN B. HILL. Sworn and subscribed, the day and year aforesaid, before the com¬ missioners. Aaron Robertson, Cli’n. Bordentown, Thursday afternoon, December 10, 1849. John D. Hager, being duly sworn, deposeth and saith—I reside in the city of New York at present; 1 left New Brunswick 2d of July last. I was formerly connected with the New Brunswick Steamboat and Canal Transportation Company. The company was organized in the fall of 1830, by a few. gentlemen in New Brunswick, and two or three in New York. \Ve had an act of incorporation from the legislature of the state of New Jersey; the charter was granted in February, 1831. AYe commenced running before the charter was granted, the company having been organized before. I was one of the original stockholders. The business of the company was transporting passengers and goods between New Brunswick and New York, and intermediate places, by steamboat and a sloop called the James iBennett; the steamboat was called the Napoleon; the sloop carried wood generally. The active men of the company were Capt. Isaac Fisher, the commander of the steamboat, Lawrence Fisher, as pilot, and myself, as clerk. In the spring of 1831 a majority of the interest in the company was sold 171 to Messrs. Stevens, Neilson, and associates. Miles C. Smith was elected president, and myself secretary, and Abm. S. Neilson trea¬ surer. Up to that time the trade of the' company had been confined between New Brunswick and New York, and continued so up to the year 1834,1 think. Up to 1834 we had only the steamboat Na¬ poleon and the sloop James Bennett, which latter was sold some time previous to that time. The original capital of the company paid in was $25,000, divided into 200 shares, and $125 per share, paid in 1834. Mr. E. A. Stevens proposed to increase the capital to $50,000, for the purpose of building canal barges to commence freighting on the canal. The proposition to increase the capital was agreed to; the original stockholders surrendered a portion of their stock, and the new capital was contributed by other persons that This new capital was invested in canal barges. In 1834, Mr. E. A. Stevens proposed to associate in the same company Hill, Fish & Abbe, then engaged in the transportation business between Phila¬ delphia and New York, which was agreed to, and they brought with them the business of the Union transportation line, conducted on the railroad, on the 1st of January, 1835; they became stockholders at the same time. No new capital was required to be raised for the transportation business for the first year and a quarter. Abbe and Fish conducted the transportation business over the railroad, as agents for the New Brunswick company, and received a per cent- age therefor. The per centage was quite large, and E. A. Stevens objected to paying them so much, and in the spring of 1836 a change was made, and their services dispensed with, and the services after¬ ward performed by clerks on salaries. As secretary, I recollect re¬ cording an agreement, in the form of a resolution of the Camden and Amboy Railroad Company, handed to me by James Neilson, in his handwriting,, between our company and th6 Camden and Amboy Railroad Company. This was after Fish and Abbe came in, it was in 1835. It was recorded in the book of minutes. The purport of it was, we were to pay eight cents per ton per mile for the railroad distance, and $2.76 for the steamboat distance, making the amount paid between city and city $7.64 per ton. The New Brunswick company owned none of the capital employed in this transportation; the boats, the cars, and all the property employ¬ ed, belonged to the Camden and Amboy Railroad Company. The transportation lino was conducted under the name of the Union transportation line, as when belonging to Hill, Fish & Abbe. The 172 name of the New Brunswick Steamhoat and Canal Transportation Company was put into the receipts or bills of lading, as proprietors. The company commenced transporting on the canal as soon as their barges were prepared, and the profits of the first year were applied to the building of more barges by the company. All the dividends of the company, up to 1838, were declared from the earnings of the steamboat Napoleon. The company held semi-annual and annual meetings, generally, up to that time, and declared dividends, except in 1837, when there was no meeting, and in 1836, when there was a meeting, and no dividend was de¬ clared. The last meeting which I attended was in 1838, at Spots- wood, which was the last meeting of the stockholders till 1847. It became my duty, as secretary, to call the annual meetings of the stockholders the second Monday of May annually. I regularly published the call till the spring of 1846, but no meetings were held after 1838; but annual dividends were declared from the earn¬ ings of the steamboat Raritan. The business of the Union trans¬ portation line was never rendered to the stockholders of the New Brunswick company from the commencement, January 1st, 1835, to its termination, in 1846. By this I mean, no accounts of the bu¬ siness were ever exhibited to the stockholders, although some of the stockholders made frequent requests to have an expose of that business. After Mr. James Bishop, sen’rs, death, his son James Bishop, Miles C. Smith, Isaac and Lawrence Fisher, and myself, waited upon Edwin A. Stevens, in this house, in Bordentown, in January, 1846. The object of our visit was to get an explanation of the transportation business, both railroad and canal. We made an application to Mr. Stevens for an expose of that business, the af¬ fairs of, the company, and he replied, it could not be done, the books could not be exhibited, that was his way of doing business; he managed the company as, a close corporation. 1 myself proposed that if he would not render an account, 1 then asked him if he would not name a price for the valuation of the stock, so that those that wished might sell, to which he replied, that he would do so. According to promise, he forwarded to Capt. Fisher a letter, dated Philadelphia, March 29, 1846, wherein he says; I estimate the whole property of the company to be worth 8228,281, or 81151.40 per share.. That was the valuation he put on it, without making any exhibit. On the receipt of the letter, we had a meeting at the house of Mr. Bishop, and we all agreed to sell, with the exception of Isaac Fisher. Mr. Stevens bought eight shares from James Bishop, 173 and one share from Dr. Uichmond, at that price. Capt. Law¬ rence Fisher and myself afterwards waited on Mr. Stevens to sell ours at the same price, and, after some considerable negotiation, it was declined by Mr. Stevens saying,, that Messrs. Neilson and Thomson found fault with his estimate, and he could buy no more at that price. I complained at this, and he said he would make a new estimate, and in January, 1847, he verbally gave me another estimate, amounting to 81010 per share, which I declined. A meet¬ ing of part of the stockholders was held in March or April, 1847, at New Brunswick, prior to which time James Bishop had pur¬ chased four shares of the stock, at 8750 per share, in Philadelphia, of Wm. .1. Watson; ho was present at this meeting. I negotiated the purchase of the stock for him of Mr. Watson. At this meeting Mr. Stevens read a letter from himself to Capt. Isaac Fisher, stat¬ ing that, upon a re-examination of the property, he made the stock worth the old price, $1151.40, and was willing to give that price to those who wished to sell. Blr. Bishop and myself replied, that we would sell at that price, if we could look at the books and find that it was not worth more. He replied the books could not bo opened; if they were, he would not name any price. Mr. Stevens exhibited a schedule or abstract of the property of the company at that time, such as real estate in Philadelphia and Bristol, steamboats and barges, and cash. The idea that Mr. Stevens held out, as a reason for not exhibiting the business of the company, was, that by expos¬ ing it to the public, the business would be destroyed by the compe¬ tition; that was what he always contended. Those items of proper¬ ty and boats were not appraised. I requested him to make a price or value to each article, so that I could judge, which ho declined. This meeting was held about ten days after I had filed a bill in chancery. This special meeting was called at the request of Mr. Stevens, I presume. In September, 1847, an examination in my suit was held before J. S. Blauvelt, master in chancery, in New Brunswick, at which examination A. S. Neilson, the treasurer, was examined. In answer to a question, Mr. A. S. Neilson, treasurer, testified, on that occasion, that all the dividends that had been de¬ clared and paid by the New Brunswick company had been paid out of the earnings of the steamboats Napoleon and Raritan. Mr. A. S. Neilson rendered an acoount the next day to me of the earnings of those steamboats, which showed that they had made the dividends. He also testified that he had no knowledge, or ever re¬ ceived any account of the business of the Union transportation line from January, 1835, to April, 1846. I received an abstract, at the same time, from Mr. Wm. H. Gatzmer, of the transportation on the railroad from 1835 to 1839, five years, making tonnage transported 53,819 tons for that period, yielding a profit to the New Brunswick company, after paying expenditures, 8245,455.23, and for the sub¬ sequent years, from 1840 to April 1st, 1846, inclusive, 149,185 tons transported, yielding a profit to the New Brunswick company of $64,911.29. The statement was not given to me in this form, but given year by year. I put it in this shape myself, as he gave it; it was as follows: 1835, 8,096 tons. profit, - $24,470.89 1836, 10,810 “ 70,873.26 1837, 12,507 “ 53,617.28 1838, 10,641 “ 53,174.80 1839, 11,675 “ “neoeipt. ' E.vpen(litnreJ. 43,319.00 1840, 14,781 “ $197,011.39 $173,735.64 1841, 18,207 “ 229,775.94 205,778.89 1842, 18,331 “ 194,305.90 200,491.28 1843, 24,054 “ 272,399.61 265,159.48 1844, 30,515 “ 324,122.33 314,960.29 1845, 32,861 “ 350,005.13 346,872.36 1846, 10,436 “ 146,719.78 142,430.85 This statement ws IS prepared for r ne by the book keeper, Mr. Gatzmer. The total amount of the receipts of the New Brunswick company from this source is 81,714,340.08 Expenditures, 1,649,428.79 Amount paid the Camden and Amboy Railroad Company, from 1840 to April, 1846, inclusive, as reported, by Messrs. King and others, $913,962.16. Bordentown, Friday morning, December 21, 1849. John D. Hager resumed.—The amount paid Hill, Fish & Abbe, for the year 1835, for their agency, was $14,602.47, making, per month, $1216.88, and it was resolved to settle with them for March and April, 1836, at the same rates. In February or March, 1846, at a meeting of the hoard of directors of the New Brunswick company at Trenton, when the resolution was passed dissolving the connec¬ tion of said company with the railroad. Miles C. Spiith, president of the company, on learning the objects of the meeting, refused to take his seat as president of the board, as he himself and a portion of the stockholders were opposed to the dissolution. I myself was opposed to it. Shortly thereafter, Miles C. Smith was removed, both as president and director, and Richard Stockton elected a director, in place of Mr. Smith, and thereafter elected president of the company. Mr. Gatzmer rendered me an account, on the 2d day of Septem¬ ber, 1847, of the steam towing, as follows; 1842, expenditures, S26,.‘)88.69 receipts, 814,768.93 1843, “ 41,268.82 “ 65,939.08 1844, “ 75,935.50 “ 73,479.32 184.5, “ 137,237.52 “ 178,613.34 8281,030.53 8332,800.67 Net profits ill four years, 851,770.14 This balance was allowed to the stockholders, in settlement with them. I received my proportion of it in payment for my stock. The New Brunswick company owned no boats engaged in the .steam towing business, to my knowledge, and that, as they never created any capital for carrying on that business, I considered the jiroceeds a gratuity to the New Brunswick company. I was willing to receive, as a stockholder, all that was rendered to us, but never knew till then that we had any thing to do with that business. My opinion is, that the proceeds arising to the Napoleon compa¬ ny from the earnings of the Union transportation line, from Janu¬ ary 1st, 1835, to April 1st, 1846, and also the proceeds arising in like manner from steam toiving for the years 1842, 3, 4, and 5, four years, was, in the main, a gratuity rendered to the Napoleon com¬ pany by the directors of said company, and without that company advancing any capital thereto, and should, in justice, have belonged to the stockholders of the Camden and Amboy Railroad and Dela¬ ware and Raritan Canal Company, the same directors being direc¬ tors of both companies. Under this view, I think it was proper that it should have been estimated in the valuation of my stock, be¬ cause, as a minority stockholder, 1 was bound to make good all de¬ ficiency, if any should have arisen in said business, consequently deem myself properly entitled to the benefit thereof. I made an arrangement with Commodore Stockton, at Prince¬ ton, January 13th, 1848, for the sale of my stock. I don’t recollect who I transferred it to, my impression is, to the Napoleon com- Ths basis on which my stock was estimated, was a valuation of 176 the property of the company, together with the reported earnings of the several lines. We had a list before us at the time, the com¬ modore and myself. After we had settled the value of the stock, and after we had separated, the commodore, conceiving there was an error, sent down to me to have it rectified, which was done. Tlie error, as he said, consisted in the fact, that I had added the original capital of 150,000 to the amount and scliedule of the pro¬ perty and earnings. This item was stricken out, but the valuation of the property was increased to make the result the same, at the instance of Richard Stockton, who came to mo from the commo¬ dore. The original valuation that had been made of the property was made at the first interview between the commodore and me, upon which the settlement was founded, reserving to myself the e.xplanation, by Commodore Stockton, of three items of cash charged, amounting to $26,000, both in the transportation books of William T. Anderson, New York, and A. S. Neilson, treasurer. New Brunswick, I conceiving the latter to be the only proper place. The valuation referred to was made with the assistence of clerks who were present at the interview with the commodore and my¬ self. The valuation, as made, was agreed to by both parties at the time. The amount of the capital was afterwards added to this va¬ luation, on the supposition that it ought to be added to make it right, not on the supposition that the property was worth more. The three items referred to was cash charged against stockholders for dividends for the years 1837, 1840, and 1841, the same being charged in the books of the treasurer, at Now Brunswick, in the first place correctly, and allowed to him by the stockholders, and in the second place the same items were charged in Mr. Anderson’s books, as I think, wrongfully. The dividends were respectively S8000, $10,000, and $8000. We were also proprietors of the canal freight line and canal coal barge line, and at this settlement at Princeton, January 13th, 1848, a profit of-$103,736.05 was allowed on the freight barge line; on the coal barge line was a loss of over $20,000 ;• I have not the exact amount. With the exception of the first year, no settlement was had with the stockholders, nor any account rendered them con¬ cerning this business for thirteen years. Cross-examined by Mr. Bradley. The original cost of the steamer Napoleon, complete, and the ' sloop James Bennett, was $23,000, or thereabout. The books of the company were always open to the directors, I suppose and un- 177 derstood. If the earnings of the steamhoat were appropriated to tlie dividends, the cost of building the Raritan must have been de¬ rived from the sale of the Napoleon and other sources. The Rari¬ tan cost $48,000, or thereabouts; the Napoleon sold for about 810,000. When I say there was no meeting of the stockholders, from 1838 to 1S46, I mean to say that no opportunity was offered for the original or minority stockholders to meet with the majority stockholders. I cannot say whether there was or was not a meeting of the stockholders between 1838 and 1846; but I have no doubt there were meetings of the directors who were large stockholders during that time. 1 do not know, from iny own knowledge, of any of the stockholders applying for an expose of the business of the company prior to our meeting Mr. Stevens at Bordentown, in Jan- uai-y, 1846. I have no knowledge, except what I have been told by other stockholders. When Mr. Stevens, in March or April, 1847, offered to allow •S1151.40, the amount of his first valuation, it was on the condition that all the dissatisfied stockholders would sell at that price. A meeting of the directors and stockholders was held in April or May, 1847, on notice from the treasurer, and a committee of three was appointed by that meeting to examine the books of the company; that committee was Isaac Fisher, Richard Stockton, and Col. Win. Cook. They did report a schedule of the property and earnings, in gross, of the lines. This agreed, so far as relates to the articles of property, with the one previously exhibited by Mr. Stevens, to the best of my recollection. This meeting was the 3d day of the month of April or May. Mr. Anderson was present rvith the books and papers of the company; he had three chests full of hooks and papers, I presume all the books and papers of the company. I do not know but what they were subject to the inspec¬ tion of the stockholders; but I considered it impossible for the stockholders to make an examination, in the time afforded to them for doing so, at that meeting. I can’t say whether or not the books were taken out of the chests or not. I did not look at the books ; I think I looked at the schedule. I heard no objections made against the stockholders examining the books or statements. I and my counsel examined a portion of the books and papers of the com¬ pany, at the treasurer’s office in New Brunswick, in presence of Mr. Gatzmer, the next day after the examination in my suit, in September, at New Brunswick; no books of the company were refused to us. This was done by consent of the counsel on both sides. We took extracts from the books at that time; we were there a good part of the day examining the books; we got through with the examination of all the books that were there; they were Mr. Anderson’s and Mr. Gatzmer’s books and papers. This was the time Mr. Gatzmer gave me the statements before mentioned. The Napoleon company owned the steamboat Hornet; whether she was engaged in steam towing or not, I do not know. I do not know whether any of the ofSce or general expenses had been taken out of the steam towing account or abstract or not, as presented to me. It did not include any of the expenses of 1846, to my know¬ ledge. The steamboats Napoleon and Raritan had no opposition on the Raritan river up to the time I left, except sometimes in the summer a small boat run to Washington. I loft the concern on the Ist of April, 1847. The Antelope com¬ menced running in August, 1847. I was engaged with the company owning, as general agent, until the 1st of November, 1847. She was commenced building in May, 1847; she was built in about four months. It was in the spring, April or May. I was among those who started the enterprize of the Antelope. I have not been interested in the Antelope since November 1847. I tliink the build¬ ing of the Antelope was contemplated from the month of March, 1847. The company was organized early in March. The organi¬ zation was under the charter of the Perth Amboy Steamboat Com¬ pany, which had been chartered for a year or two prior. The stock was filled up by Amboy, New Brunswick, and Woodbridge peo¬ ple. I never heard of the building of a new boat talked of until February, 1847; I can’t say whether it was before or after 1 filed my bill. 1 am in no business at present. I have never, by any ar¬ ticles furnished for the press, directly or indirectly, or any other ])rinted publication, been concerned or had any thing to do with any charges against the Camden and Amboy Railroad Company nr its officers. I did sign a petition to the legislature requesting an investigation into these charges. I would also except my bill in chancery. I have not, to my knowledge, been concerned with any persons who were making such publications. Mr. Carey wrote to me for an exhibit, this abstract that we have been speaking of, of the earnings of the railroad transportation line. This was in the year 1848, what time of the year I can’t tell. 1 wrote to him that Mr. Halsted had it, and I believed he procured it of him. I have had three or four other letters from him, making some unimportant inquiries. I always answered them. Whether I 179 could give him any information or not, [ cannot say. He once called at my house also; it was when the question of appointing the pre¬ sent commission was up in the Senate. This was the only time I have ever seen him, to the best of my recollection. I don’t recol¬ lect that I have ever contributed any money towards the publica¬ tion of Mr. Carey’s charges, or any others, against the company, nor for any other purpose in relation to the charges. The state¬ ment presented to the commissioners yesterday is in the hand¬ writing of Mr. Webb of New Brunswick. Two papers, purporting to be leltei's of the witness, one address¬ ed to Capt. Fisher, without date, and the other addressed to Com¬ modore Stockton, dated New Brunswick, December 23d, 1847, being shown to witness, he says they are in his handwriting. The letter to Commodore Stockton I sent to him by mail, at or about the time it bears date; the one addressed to Capt. Fisher was deli¬ vered by me to Capt. Lawrence Fisher, 1 think it was in October 1847, the signature was not affixed at the time; the signature and body is in my handwriting; 1 affixed my signature to it at the set¬ tlement with Commodore Stockton, January 13th, 1848. Here the witness voluntarily states, in October, 1847, after the chancellor had refused the application for a receiver, my old friends and associates, sympathizing in my affairs with the company, in¬ duced Capt. Lawrence Fisher to call upon me, and desired a settle¬ ment with the company. After some conversation, Capt. Fisher handed me a copy of the paper marked exhibit No. 1, saying that it was handed to him by Mr. James Neilson. Capt. Fisher at first refused to take it to me, but at last consented to do so. He left the paper with me, and I retained it probably a week, taking a copy thereof, and returned to him the original, declining to sign it, because I had not seen the books to enable me to subscribe to that paper. Shortly after the arrival of Com. Stockton fi'om Cali¬ fornia, I wrote to him the letter marked No. 2, of my own accord. At the settlement at Princeton, January 13, 1848, it was under¬ stood between Com. Stockton and myself, through my attorney, that if I found, on examination of the books, if I could sign that paper conscientiously at the settlement, I should do so. Upon that examination I discovered the double charge, as I understand it, of $26,000 for dividends. 1 called the commodore’s attention to that fact; he replied he was anxious to settle the matter according to the books. After some delay, and not wishing to defeat the settle¬ ment, I proposed to him that we should close the matter, and I 180 would sign the paper alluded to on the condition that he would, on the 1st April following, examine the hooks in New York and New Brunswick, to see if my allegations were correct or not; and if he found those charges, as alleged by me, correct, that is twice charged, then he would remit to me my proportion of the amount, to which he gave me his personal pledge of honour that he would do so, whereupon I closed the matter, and signed the paper No. 1. JNO. D. HAGER. Sworn and subscribed, the 21st day of December, 1849, before the commissioners. Aaron Robertson, Cli’n. COPY OK EXHIBIT NO. 1. To Captain Fisher. Dear sir, —^You being a mutual friend of Mr. E. A. Stevens and myself, I feel it a duty I owe to him and myself to state to you, that the information I have received since filing my bill against Mr. Ste¬ vens and others, by the examination of the hooks of the New Bruns¬ wick company, and the testimony of the witnesses examined in re¬ ference to the above bill, and the answer thereto, I am now perfectly satisfied that Mr. Stevens, as far as he directed the affairs of the com¬ pany, did so as to its best interests, and that 1 was in eri-or in regard to the management of the company, and have done Mr. Stevens and his associates an injustice which I regret, and would willingly repair if in my power. JNO. D. HAGER. COPY OF EXHIBIT NO.'2. New Brunswick, December 23, 1847. To Commodore Stockton. Permit me to congiatulate you upon your safe arrival among your family and friends from your perilous campaign in New Mexico, and of your continued good health. I have flattered myself that 1 have always enjoyed your good opinion and friendship, and that induces me to make some expla¬ nations in relation to the unfortunate difficulties that have arisen in your absence relative to the affairs of the New Brunswick Steamhoat and Canal Transportation Cmnpanij, all of which I believe would have been avoided if you had returned to the United States in the early part of the present year. 181 Without wishing to enter into any review' or defence of the many charges made in the bill filed in chancery by me against Mr. E. A. Stevens and otbers, I will be frank, and say, that from my previous knowledge, as well as from information derived in the prosecution of the cause, in the taking of depositions, &c., I am fully satisfied that the management of the New Brunswick Steamboat and Canal Transportation Company, by Mr. E. A. Stevens and bis associates, has been for tbe best interests of the stockholders; and at a meeting held at New Brunswick, in April last, I cheerfully gave my vote for the following resolution: “Resolt-ed, That the thanks of the stockholders arc duo to Edwin A. Stevens for the ability and success with which the afliiirs of the New Brunswick Steamboat and Canal Transportation Company have been managed by him, and that they have undiminished con¬ fidence in the management of the affairs of the company.” I will also say, that from the examinations made.sinoe the com¬ mencement of the suit, I have discovered nothing that would impair the personal reputation of Mr. Stevens, Mr. Neilson, or Mr. Thom¬ son; and if at any time during the progress of the examination, in the warmth of feeling, I have said any thing conveying any such imputation, I w'ill most willingly retract the same, whenever called upon for that purpose. I need only to appeal to your well known character for probity and bigh honour, to believe me when I say to you, that I am only seeking my proportionate share of the assets of the company, hav¬ ing for the past tw'o years anxiously desired (owing to my loss of sight) to retire from active imrsuits. Respectfully, ' JNO. D. HAGER. Bordc.ntow.v, Wednesday, January 9, 18-10. Theodore F. Mannings being duly sworn, deposoth and saith—1 have been deputy collector on the canal at Princeton since the lat¬ ter part of the year 1841, under Mr. Dograw', the principal collec¬ tor. Most of the entries in the collector’s books, or the mtijority of them, have been made by me, since I have been there. This w'as my first connection with the companies. My principal duties have been to keep the books, clear vessels, and receive the tolls, ascer¬ tain the weights of tbe cargoes, and enter them in the collector’s book, distinguishing between superior and inferior merchandise. With regard to vessels that paid their tolls as they passed, the tolls 182 and the amount of merchandise have always been entered correctly, according to the best of my knowledge and belief. All through tolls are paid at the collector’s office at Princeton, in which I was situated. I know of no through merchandise whatever, the weight of which is not accounted for at the Princeton office. It is the only through office on the canal. The other collectors’ offices receive the way 'tolls, and have nothing to do with the weights. The rule is for the Princeton office, however, to receive all way tolls for merchandise that passes that office; there have been some few departures from it. There have always been, since my appointment, some vessels, certain lines of vessels, that did not pay as they passed; but paid monthly, or at other periodical times, by arrangement with the company. These tolls, when settled, were frequently collected by drafts on the persons from whom they were due, always being ac¬ counted for through the Princeton office, there being no e.\ception to this rule, to my recollection. The lines of vessels which paid in this way, and did not pay as they passed, were the Merchants and Swiftsure lines, Frazier & As- pinwall’s Albany line, Hartford line, Easton line, and lately the Commercial line, which took the place of Frazier & Aspinwall’s, and the Baltimore line, also most of the regular coal lines. Some of the tolls on coal from the Schuylkill were formerly collected by Mr. Pennington, at Fairmount, who gave the boats a receipt and order to exhibit at our office. There are several individuals, also, who have a credit to the end of the month ; it is confined generally to the coal business. The Easton line, I think, has run ever since I have been in the office until lately at a rate of half tolls. The arrangement does not now exist; it has not existed fur the past season, except perhaps for the first month. The deduction for¬ merly made to that line was one half of the regular tolls and other charges, according to the tariff of tolls. That line now pays the full amount of tolls, according to the tariff of tolls, and are drawn upon at the end of the month for the amount. The sole proprie¬ tors of it are Able, Wilson & Co., of Easton. Formerly the vessels of these lines were entered as they passed, as they are at the present time; but for several years the vessels of the Merchants and Swiftsure lines and the Albany line were entered at the end of the month altogether. The way we ascertained the tonnage or weight of cargo has been as follows; most vessels that pay as they pass have their 183 weight on the manifest; if this is not the case, we convert the ar¬ ticles into tons, according to the best of our judgment. We have certain rules for doing this with regard to many articles. We have never weighed a cargo, and have no Apparatus for doing so at the office. We have weighed different articles of a cargo, in order to estimate the weight of a cargo. Coal boats always have their ton¬ nage on their bills of lading, which we have generally taken. The boats belonging to the regular lines usually bring a manifest with them, with the tonnage entered on it. We are very strict witli them, ill requiring a manifest showing the amount of tonnage on board. Wo have been more particularly so in the seasons of ISlf* and ’49, and have been more strict in 1849 tban we were in 1S48. The reason of our becoming more strict with tbem, was the express order of the companies to that effect. The orders were, tliat we should detain a vessel not having a manifest showing the amount of cargo until one was procured, or until we had assurance that one would be forwarded by the next conveyance or by mail. For several years a number of vessels were omitted to be en¬ tered belonging to the regular lines. I think it was first discovered that these omissions were made in 1846. There was a supplemental return made, in the beginning of 1847, of over 11,000 tons of supe¬ rior merchandise, as having passed in 1846, and having been omitted. This was supposed to have been all that had been omitted at that time to any great extent. This return was made by direc¬ tion of Capt. Degraw, the collector. The officers of the company became aware of the omissions being made, and gave the collector directions to have them made up and returned. They at the same time gave orders to the collector to observe greater strictness in keeping a regular record of the merchandise that passed. There was much greater regularity the following year than there had been before. Orders have since been repeated, from time to time, by the officers of the company, to observe greater strictness, and to keep a complete record of the merchandise that passed; and for the past year, I think, every thing has been entered to the full amount, to the best of my knowledge; and I know that we are very strict, and believe that no vessels have been missed. We take the tonnage entered on the manifests, and have reason to believe that it is correct, judging from the cargoes themselves, as the ves¬ sels passed. If there is any difference, I think the estimates would incline to be greater than the amount on board. I have always had 184 instructions from the collector, that in making estimates of cargo, to make them liberal. I suppose the omissions arose from carelessness. It was not done at all with the knowledge or priority of the olEcers of the company; so far as I know or believe, they knew nothing about it, until, having discovered it, they directed it to be rectified by a supplementary return. I always understood it to be the duty of the collector to return monthly, to the treasurer of the canal, a statement of all merchandise that had been transported through it. The treasurer relied on these returns for the amount; it was the only guide he had. It was at the close of the year 1844, or the be¬ ginning of 1845, that we commenced entering the vessels of the regular lines at the end of the month, instead of entering them in their places according to the date of their passage. The tolls due from the Merchants and Swiftsure lines we always get from the agents of those lines in New York and Philadelphia. Many of the omissions occurred by the neglect of the agents of the transportation lines to send manifests. When the manifests were sent they wore not such as that we could coiTectly estimate the weight of the cargo from them, without reference to their estimate inserted therein or to the cargo itself. They did not contain suffi¬ cient data of themselves; they often did not contain an estimate of the tonnage; then we had to estimate it to the best of our know¬ ledge, by inspection of the cargo and the general known capacity of the vessels, aided by the manifest. In many cases we could not correctly infer from the manifest what cargo was on board, a great many things often being entered in lump, as so many packages or so many bales of merchandise, without a specification of the weight or size. There was often great uncertainty in our estimates, after using all the evidence we had at command. I was aware that the tolls of the company did not depend on the weight of the cargo, but in the freights charged. I invariably made the estimates what I considered to be large. I was aware that the transit duty of the state depended upon the weight. With a few exceptions, the manifests did not discriminate when they had way merchandise on board, and my estimates were based on the whole cargo. The tonnage transported by Frazier & Aspin- wall’s line was made up, at first, from the manifests, which con¬ tained a specification of the articles and weight, afterwards it was made up at the end of the month from all the manifests for the month, and entered in gross, without specifying the vessels. I 185 think the agents of that line were particular about forwarding the manifests regularly. I don’t think we have ever taken the oath or affirmation of a master of a vessel to the correctness of his manifest. It was first suggested by Mr. Degraw, the collector, to Mr. Thom¬ son, or one of the officers of the company, that omissions had been made. The suggestion was not made in answer to any inqui¬ ries, to my knowledge. The collector discovered the fact from the small amount of tonnage entered at the end of the month. The supplemental return was made up from the manifests sent from the offices of the agents, after the omissions were suspected. They were written to by the collector to send them, and they were sent on to the office at Princeton. I do not now recollect how the estimate was made up. I am under the impression that it was from the articles on board, and if so, it was done at the collector’s nfficei by the collector and myself. This supplemental return was in¬ tended exclusively for merchandise transported by the Merchants and Swiflsure lines, it embraced nothing else. They wore for a portion of the season of 1816, covering all the time it was sup¬ posed and believed that omissions had occurred; that was the in¬ tention, I think. I drew the collector’s attention to the small amount of tonnage. When the supplemental return was made, in 1847,1 was aware that there had been omissions, to a small extent, in for¬ mer years, but do not think that the company were aware of it. Until this examination had commenced, we did not suppose but that the supplementary return covered all the omissions that had been made in 1846. I believe that the transient business is all correctly entered. There are two assistant collectors or clerks at Princeton office, John W. Schenck and J. Wilson Stout. Mr. Stout has been there two or three years, and Schenck between three and four years. The omissions previous to 1846 were similar in character to those of that year; I know it from' the fact, that all the vessels had not manifests as they passed. Vessels were sometimes permitted to pass, previous to 1846, without manifests being exhibited. It was not my impression, at the time, that these omissions were very ex¬ tensive. In 1846 I kept the books, and had a knowledge of the omissions in that year, previous to Capt. Degraw making it known to the company. My impression was that there had been omissions for, perhaps, two or three years in a small way, but not as a gene¬ ral thing. I don’t think I called the collector’s attention to the fact, that there had been omissions previous to 1846, I do not know that 186 lie was aware that there had been omissions previous to tliat time; ho may have been, hut I cannot say. In the year 1847, I knew at the time that some omissions were occurring, from the fact that vessels did not leave their manifests; 1 imagine that Capt. Degraw was aware of it also. In 1848, I think, the same thing occurred to some extent. The return to the treasurer of the company is some¬ times made out by Capt. Degraw and sometimes by myself. In making our return to the treasurer, I considered it only correct so far as it went, as it regarded the tons. We had no materials in our office to correct the books by. AVe never noted the fact in our re¬ turns, that there had been omissions, when we were aware of the fact ourselves. We never conveyed the intelligence of any omissions being made to any of the officers of the company, prior to 1846, nor do 1 think that any thing was ever said to them about any omissions since that time—nothing to my knowledge. The omissions of the tonnage of the Hartford line, in 1846, occurred by the agents not sending the manifests. In saying that the omissions were made in consequence of care¬ lessness, I mean the carelessness of the agents in not sending the manifests, either at the time or afterwards. I attribute it entirely to their carelessness. If the manifests had been sent, they would cer¬ tainly have been entered. When they did not send them, I should suppose that it was the collector’s duty to have sent for them, and have the tonnage entered as the boats passed. I think no means wore taken by the collector to have them sent at the end of the month, where they had not come regularly during the month. I should consider it his duty to have got at the amount, as near as he could. I have no knowledge that the collector, in regard to this matter, acted from any other motives than carelessness. He follows no other business, except that he resides on a farm, and has the care of that. I know of no reason why the collector or myself did not communicate to the officers of the company our belief that omissions were made prior to 1846, and after that time, unless it was an idea that it could be afterwards adjusted. I cannot say that idea operated on my own mind. I should think a weigh-lock the most effectual mode of getting at the weight of cargoes, and I should think it a practicable one. It would not distinguish superior and inferior cargo, but inferior freight is usually in large quantities, that can be ascertained in other ways. I think there would be no difficulty in establishing a weigh-lock at Princeton. I have seen a 187 weigh-lock in operation at Easton. 1 think Princeton would be the most convenient place to erect one. I do not think that the pro¬ cess of weighing a vessel in a weigh-lock would consume any more time, or cause any more delay, than a proper examination of the cargo or the manifest, if the latter mode were resorted to. We have compared the collector’s book with Captain Raymond’s regis¬ ter, kept at Bordentown, all the past season. Since 1846 we find, by comparison, that he has some vessels in his books that we have not in ours, and some in ours that are not in his. In 1847, I think, our book contained most omissions, more than his. Myself and Mr. Stockton were present at the examination, or Mr. Degraw, or one of the assistants in the oflTice. These examinations that I allude to, were made within the last year. I know of no favouritism shown to any individuals using the canal, unless it be that some have a credit till the end of the month for the payment of their tolls. This privilege is often extended to regular traders. THEO. F. MANNING. Sworn and subscribed, the day and year aforesaid, before the com¬ missioners, Aaron Robertson, Ch'n.