No. 9.

1845.

REPORT of the Committee of Internal Improve

ment.

The committee of internal improvement, to whom was referred that portion of the Governor's Message, relating to the subject of internal improvement, and the report of the board of internal improvement, together with several petitions, asking for appropriations of land for the purpose of improving canals, rivers, and common roads, have had the same under consideration, and report:

That your committee entered upon the discharge of their responsible trust, and proceeded to ascertain the proper objects of internal improvement, such as rail roads, common roads, canals and vavigable rivers; and being actuated by motives of patriotism, and with an ardent desire, that equal and exact justice might be their unerring guide in all their deliberations.

With such feelings your committee entered into a close examination of the wants of the people of the State; and being aware of the inability of the State, at this time, to extend that aid which your committee believed the various interests of the people of the State required.

With such views, your committee, in determining the proper course to pursue in relation to the subject of internal improvement, concluded that they had better follow the dictates of common prudence, and see if there cannot be selected from among our several public works of the State, any one on which an expenditure of the public money has been made, and the return, equal to the expectations of the public from the amount so expended; or on which a further appropriation would, in all human probability, secure to the State a net revenue, equal to the yearly interest on the amount invested on such work. And if, on a careful examination of our several public works, no one can be found which has yielded a net revenue, equal to the annual interest on the cost of its construction, or which will not,

with a further appropriation, produce a net revenue, equal to the interest on that further expenditure, and at the same time preserve the work from decay and ruin.

A majority of your committee are of the opinion that it would not be sound policy to make any further expenditures on the public works which will not produce to the State a revenue equal to the interest on the amount expended, under the present embarrassed condition of our finances.

Local interests will, undoubtedly, in some portions of our State, cause some to feel that justice and equality has not been meted out with an impartial hand; for past experience admonishes us, that all parts of the State cannot be satisfied. It is believed, however, by a majority of your committee, that the patriotism of the people in those portions of the State, that may deem themselves as not receiving their share of the fostering care of the government, that they will ultimately concede the propriety of yielding up their local interests for the general good.

Expenditures for one part of the State for the immediate benefit of that portion of it where no correspon-ling return can be made to the people of the whole State-when it must become necessary to levy a direct tax on the people at large, for the ultimate payment of such an expenditure, would seem to be unwise, and tend to the most deplorable consequences.

Confident in the truth of the foregoing concrisions, a majority of your committee believe that the present and future welfare, as well as the honor of the State, demand that the present limited resources of the State should be so appropriated and expended, as to return to the State treasury the largest amount of net revenue.

Therefore with a view to determine on what works appropriations could be made to yield the largest amount of revenue, your committee examined into the past and probable future revenue of the several state works of internal improvement, and after a careful and mature investigation of the state works, and from necessity your committee came to the irresistable conclusion, that the Central and Southern Railroads, do at this time and probably will, for all future time, produce to the state, a much larger revenue than any of the other state works. It is the opinion of some portion of your

committee, that the net proceeds of the Central Railroad, when completed to the village of Kalamazoo will exceed $200,000 per annum, and will soon thereafter be considerably increased, and when perfectly completed to the mouth of the St. Joseph River, $350,000 per annum ; a revenue sufficient to pay the interest on the present indebtedness of the state, and over $100,000 per annum on the principle.

In support of this opinion a majority of your committee find the following facts, in relation to the revenue of the Central Railroad: That the last fiscal year before its completion to Jackson, the nett proceeds were $25,655,30, for the year 1842, 63,075,63, for the year 1843, $75,026 30, for the year 1844, $121,750 33. It will be seen by the above exhibit, that by the extending of this road thirty miles, or 30-110 of the whole distance now completed, although not entirely completed until August last, it has increased the net proceeds of the road over sixty per cent, or about fifteen per cent on the cost of said extension, and the increase of passengers for the last year over the preceding one has been over 70 per cent. Should the increase of profits be of the same ratio in proportion to distance, when completed to the village of Kalamazoo and to the mouth of the St. Joseph River, the profits would exceed the estimates of your committee, and they can see no good reasons why it should be otherwise.

The Committee are of the opinion that if the Southern Railroad was completed to the village of Coldwater, it would be of immense benefit to the inhabitants, on and west of this road, by affording a facility for getting off the surplus produce of that fertile region of country, a considerable portion of which must otherwise take the route to Fort Wayne, and be lost to the nett profits of this road.

It is the opinion of a majority of your committee, that if the said road be completed to the village of Coldwater, that the business of the road will be so increased that it will pay a small rett revenue to the state immediately, and continue to increase until it will ultimately pay the interest on the cost of its construction, if it should be extended ro farther.

It is also the opinion of your committee, that a small appropriation might be advantageously made for the purpose of locking the Clinton and Kalamazoo canal into the Clinton river at or near the village of Frederick. It is believed that such an expenditure is absolutely ne

cessary to preserve the work from waste and decay. Your commit tee have no confidence, however, that such an improvement will pay any net revenue to the State; but they have the assurance of some of the most respectable citizens of that vicinity, that it will pay a revenue adequate to keep it in repair.

Therefore, prudence would seem to dictate, as this work must ultimately be an important State work, that the guardians of the State should have an eye to the future as well as to the present welfare of this growing State.

If the improvement spoken of above should not be made, it must remain in its present unprofitable situation, and a nuisance to the inhabitants of the surrounding country, by stagnant water remaining

in the canal.

If a majority of your committee have taken a correct view of this subject, then what must be the duty of the legislature at this time? We answer, that experience is the monitor that should guide us in the discharge of our duty; that we should cause the prosecution of the Central railroad to its ultimate completion, and the Southern railroad to the village of Coldwater as speedily as possible consistent with our present limited resources.

The ability of the State to extend these important works seems to be the only doubt in the minds of any of your committee, as to the propriety of making appropriations for the extension of the Central railroad beyond the village of Kalamazoo or the Southern beyond its present termination.

But a majority of your committee are of the opinion that the State does possess the means that cannot be profitably expended for any other purpose than internal improvement, which are now unavailable and valueless in their present situation.

There are of the lands ceded by the General Government to this State for the purpose of internal improvement, something like 245,000 acres unappropriated, which cannot be converted into any means for paying the indebtedness of the State. Your committee are aware that these unappropriated lands are liable to be taken at any time at their minimum price for the payment of all outstanding warrants; and after the first day of July next, also liable to be taken in pay

ment of the bonds issued for interests under the act of March 8th, 1843, to liquidate the public debt.

It is believed by your committee that the interest warrants and bonds, now outstanding against the State, are mostly in the hands of capitalists who hold them for a permanent fund; and such capitalists generally avoid land capital. It is believed by your committee that these unapproriated lands, now belonging to the State, although of the very best quality, will never be taken to cancel such bonds and warrants.

There is no doubt in the minds of a majority of your committee, but these lands, now unappropriated and belonging to the State, can be so disposed of on the Central and Southern railroads, by being judiciously expended, that it will pay more than seven per cent. per annum on the now minimum price of said lands. And that the extension of these roads can now be prosecuted at much lower rates than they ever have been, and payable too in land or its proceeds only.

Some of the reasons why they come to these conclusions, are the experience of the last year, as compared with previous years, when cash was paid for work and materials, as will be seen by a communication from the acting commissioner of internal improvement to the Speaker of the House of Representatives, of February 1, 1845.

By comparing the prices paid for work and materials in constructing the Central railroad from Dexter to Jackson, when cash was paid, with the prices for the same kind of work and materials expended between the village of Battle Creek and Kalamazoo, the average for work and materials is about the same where land warrants only were paid.

As the following table will show :

Fourth Division, between Dexter and Jackson.

For grubbing and clearing track, average per mile,

Common excavation, per cubic yard.

$117 56

12

32

88

52

13