124 REPORT UP THE

CHESAPEAKE AND OHIO CANAL.

Notwithstanding the misfortunes to which this great work has
been so frequently liable, it is confidently believed that, under prop-
er management, it will yet be a source of decided income to the
Treasury of the State, as it has been of immense value already to
the people of the Western counties.

By the completion of Dam No. 5, and the Shriver Basin, in 1869
and 1870, the Canal was raised to a state of successful operation,
and its revenues became applicable to a reduction of the indebted-
ness of the Company, after payment of the expenses of supervision
and management of the work.

The gross receipts of the Canal for the year ending 31st Decem-
ber 1869, as appear by the Report of the President, made 1st
June 1870, were $388,694.10, and for the year ending 31st Decem-
ber 1870, were $357,349 52, as appears by Report of the President,
made 1st June 1871.

The receipts over expenditures, for the year ending 31st December
1869, were $125,523.94, and those, for the year ending 31st Decem-
ber 1870, were $108,600.38, as appear by the said several statements.
It is, therefore, fair to conclude, that from one hundred and ten to
one hundred and fifty thousand dollars may be relied upon, for re-
ceipts over expenditures, applicable to the liquidation of the indebt-
edness for which the State has postponed her lieu, and afterwards
to increase the revenues of the Treasury. It is believed that im-
provements in the navigation may perhaps increase the capacity
of the Canal, and prudent management lessen the expenses, so that,
payment of the preferred indebtedness may be accomplished in a
shorter time than has heretofore been anticipated, and the amount
then available to the Treasury be correspondingly.increased. This
desideratum is mainly to be accomplished by the zeal, activity and
intelligence of the officers of the Company.

The revenues of the Canal for the year ending 31st instant, are
not now even approximately within my reach, but are known to
have increased very largely over former years.

REVENUE AND TAXATION.

The equalization of taxation, so that its burdens may rest on all the
property, capital, and business of the State, in proportion to its true
value and productiveness, is the great desideratum to be obtained by
the General Assembly, in perfecting tho legislation on this subject.