COMPTROLLER OF THE TEEASURY. xi

spired against it. The expenses of the Canal have been
reduced to the minimum, and since then an active and
energetic gentleman has been placed at its head, who
promises to make an earnest effort to place the Canal
once more upon a paying basis. In the face of these
things it would seem that the interest of all concerned
can be best subserved by everyone interested in this
great work of Internal Improvement giving to the
new administration a hearty and cordial support. The
State's claim against this Canal, in bonds, stocks and
interest amounts to $24,566,412.20.

SUSQUEHANNA AND TlDE WATER CANAL COMPANY.

This company is still in default in the payment of
the interest due upon the Mortgage to the State,
amounting on the 30th day of September last, to the
sum of $ 414,000.00.

I regret to state that the Reading Railroad Company
failed to comply with the Act of 1884, chapter 160,
whereby it was proposed to lease the Canal to the said
Railroad Company upon its paying the interest then in
arrears upon said mortgage, amounting to the sum of
$384,000.00. This failure upon the part of the Reading
Railroad Company Avas owing to its own financial
embarrassment. I have received assurances, however,
that some part at least of this large and accumulating
interest will be paid during the current fiscal year, and
I hope that by the time the next Legislature meets the
Reading Railroad Company will again be in a position
to make a satisfactory settlement of the arrears of
interest now due the State, as well as to provide for the
payment of interest in the future, and thereby put said
mortgage in the list of productive assets of the State.
The State's claim against this Canal, principal and
interest, amounts to $1,414,000.00.