1876 ] OF THE SENATE. 457

Secondly. It is estimated that the extension of the canal
from the Potomac to Baltimore, will cost f 4,500,000.

Thirdly. That the railroad to connect the canal with the
coal regions in the mountains, will cost about two million
dollars more, making an aggregate cost for improvement and
construction of about tight million, five hundred thousand,
dollars.

It must not be overlooked, however, that there are debts
and claims binding on the revenues of the canal Company,
other than the large debt to the State, and having priority
thereto, which, if capitalized, will be (say)$2,800,000 in ad-
dition. Thus we have to face a difficulty in the outstart of
$10,500,000.

The question presents itself, how is this large sum of money
to be procured?

In solution of this difficulty, we must first look to the ef-
fective results of the proposed expenditures.

Suppose the canal and its railroad connectioas to be com-
pleted on the proposed scale of usefulness. Suppose boats of
300 tons burden, delivering direct into ocean ships at Locust
Point. Suppose the prism of the canal in its whole distance,
made secure from loss by flood and overflow—and its naviga-
tion provided with never-failing supply of water. Suppose
the leakage of its revenues for "construction" account, and
for "ordinary repair," and for "extraordinary repair," and
for tow path to be stopped and hermetically sealed up. Sup-
pose, then, as consequent upon these expenditures, the cost
of boatage shall fall from $1.25 to 50 cents a ton, with such
results, would not the tonnage of the canal double—would
not its net revenues more than double?

From the report of President Gorrnan for 1874, the gross
revenues of the canal were $517,412—its net revenue was
$227,204. The charges on this gross revenue, however, were
for "construction," $13,649—for repair, $76,649, and for
"extraordinary repair," $53,487, making up a total cost
under these heads of $142,720.

If, however, the canal had been in the perfect condition, as
proposed for the new canal; the charges tor "construction,"
and for repair "ordinary" and "extraordinary," would surely
have been abated by at least $100,000, and the net revenue
would have been $327,000,

Thus we may safely estimate the canal as good for an in-
terest on $5,000,000. When enlarged and extended to Balti-
more as contemplated; its net revenues would surely be dupli-
cated, and it would yield an interest on $10,000,000.

This estimate, however, your memorialist submits is ab-