upon principle, that, in every perfect or competent government, there must exist a general power to enact and to repeal laws, and to create and change or discontinue the agents designated for the execution of those laws." (10 Howard, U. S., 416.)

The same principle has been sustained by the Court of Appeals of this State. (1 Selden, 285.) This principle applies with equal force to public works by the State and to the agencies employed in their construction, whether by contract or otherwise.

The right of the State to continue or discontinue public works, to change or abrogate the methods for their construction, and to employ and dismiss agents necessary for that purpose, must exist, or its power to act as a sovereign is ineffectual. If this power exists, there can be no breach of a contract entered into by the State for the construction of a public work, for the right of the State to suspend work and to make any desired change is implied in every such undertaking. No claim for future profits can therefore arise. The State performs its obligation by making full compensation. The Court of Claims at Washington rejects claims of this character against the United States Government, and the Supreme Court of the United States in a recent case (decided October, 1877) has applied the same principle. (McKce vs. United States.)

The question of the respective merits of the district or the township system of common schools was raised before the Legislature by the State Superintendent. The common-school system of the State, which has been in force for many years, is considered as hardly surpassed, if equaled, in excellence elsewhere. Under this system, the territory of the State is divided into school districts of convenient size, so that children of school age can get to school without subjecting them to inconvenience in walking too far. It is a system in the country that reaches more children than any other. The people of every school district have a right to elect their own trustee or trustees, and they have a right to build their own schoolhouses to suit their taste and convenience. In favor of this system, it was urged that the people of each district had a right to control their own schools, and that the further the schools were removed from the control of the people, the less interest they would take in them; and, if the people lose all interest in the schools, they will retrograde. If the township system was adopted, the control would be placed in the hands of a town board elected at the annual town meetings. The consequence might be that the management of the schools would be carried into politics and made a political question. Soon the Legislature would be urged, under this system, to pass a law to establish a central high school in every town at the expense of the tax-payers. Those living near the high school, it was urged, would receive the most benefit of that school, while it would lower the standard of the other schools in the town, etc. The State Superintendent thus explains his proposition: "I recommend that the Legislature abolish the present system of school districts, and in its place establish the township system. Let all the schools of the town be under the care and direction of a board of education to be elected at the annual town meeting; the amount of tax necessary to be raised

for the support thereof, after the application of the public money thereto, be levied as a town tax; the powers now vested in the trustees of school districts given to town boards of education, with such additions as wisdom and necessity may dictate; and that the powers now vested in the inhabitants at district meetings be transferred to voters at town meetings, with such modifications and extensions as they may deem expedient. With such a system properly organized and in thorough working order, I predict that the cause of education in the State of New York will be greatly advanced." No change has yet been made.

The report of the State Engineer on railroads for the year 1878 was sent to the Legislature in March. During the year twenty-six corporations were formed, and twenty became extinct. Of 862 railroads organized under the laws of the State, but 275 remain in existence. At the time required by law (December 1st) 109 companies failed to report, and thereby rendered themselves liable to a penalty of $250, and $25 dollars per day until the report was received. The capital stock of the steam-railroads reporting in the State was $392,164,754.25, and the proportion for the State of prorating the roads lying partly in the State and adjoining States was $287,826,957.05, being an increase in the total aggregate of $7,255,616.49. There have been built 107 miles of steam and 8 miles of horse railroads during the year. The number of passengers carried during the year by the steam roads was 48,769,084, an increase of 8,756,863. and each passenger traveled an average of 20-84 miles. The horse-railroads carried 244,290,364 passengers, an increase of 5,748,628. The number of tons of freight carried by the steam roads was 38,320,573, an increase of 3,335,792. The records of accidents upon the steam roads for the year show 322 persons killed and 567 injured, a total of 887. Of those killed, 11 were passengers, 88 employees, and 223 others. The total horserailroad accidents were 155, of which 44 were fatal; 5 of those killed were passengers, 9 employees, and 30 others.

The State tax-levy for 1879 was less by 0.37 of a mill than that of the previous year. The total reduction was $263,193.

A code of procedure and a code of substantive law were both passed by the Legislature and vetoed by the Governor.

The policy of the statute of the State relating to savings banks, as explained by the AttorneyGeneral, is to exclude from the management of the bank trust all persons who have any pecuniary relations with a bank or with a borrower from a bank which might induce a lack of vigilance as trustee, or antagonize duty by private interest. He says: "The only rule of safety, therefore, for all cases, in the different forms in which they may arise, is to adhere rigidly to the policy indicated by the statute, to deem as ineligible for the position of trustee or officer of a savings bank all persons who have any

pecuniary interest, whether as owner of property subject to mortgage held by the bank or as borrower, guarantor, or partner of a debtor to a bank, which may influence in any degree the performance of official duty. Strict enforcement of this rule may occasionally exclude a good man from such a trust, but like results are incident to all general rules of public policy, and the number of improper men excluded will be much greater."

The number of joint-stock fire and fire and marine insurance companies organized under the laws of the State on January 1, 1879, was 49, against 95 in the previous year. Total unobjectionable assets, $56,585,455.55, an increase of $81,656.92 over the previous year; capital stock, $25,057,020, a decrease of $900,000; total liabilities, including capital, $37,984,693.73, a decrease of $1,363,965,20; net surplus beyond capital, $18,616,387.99; total income for the year, $21,097,468.04, a decrease of $1,315,503.45. The fire loss was $7,923,684.54, a decrease of $1,724,004.67; the marine and inland loss, $848,172.97, an increase of $345,957.81; dividends to stockholders, $3,019,243.73; all other items of expenditures, $7,799,860.82; and the total amount of expenditures was $19,590,962.06.

Charges were made by the New York Chamber of Commerce against the New York Central and Erie Railroads relative to unjust discrimi nations in freight expenses against New York City. A committee was appointed by the Legislature to investigate the charges, consisting of A. B. Hepburn, chairman, of St. Lawrence County, and eight other members of the Assembly. The position taken by the president or chief officer of each company was one of public interest. In a joint letter to the committee they substantially declare that the annual reports contain about all the information that can justly be demanded by the public. This position is based on the theory that the rights vested in a railway regarded as a private concern so far overshadow its character

as a public corporation that the rights of the public in the latter virtually cease to exist. To the railway the State has granted a part of its sovereignty, to be exercised with due regard to the rights of the grantors-the people; and this endowment of sovereignty has passed beyond the control of the grantor. The committee was clothed by the Legislature with power to send for persons and papers, to investigate the abuses alleged to exist, and to report to the Legislature what legislation, if any, is necessary to protect and extend the commercial and industrial interests of the State. Their first session was held in New York City

on June 12th.

The town-bond repudiation sentiment received a severe blow early in the year by the action of the courts. The town of Lyons, Wayne County, was bonded to aid in the construction of the proposed Corning and Sodus Bay Railroad, which was never built. The

town authorities refused to pay coupon interest, alleging that the bonds were invalid. A suit at law was instituted, and a decision adverse to the town reached in the United States Supreme Court in the last week of April; it held that the recital in the bonds was an estoppel, and that the bona fide holder was not bound to look further, and the obligator could not go behind it. The town of Thompson, Sullivan County, was one of the first to contest its bonds. These were issued in aid of the Port Jervis and Monticello Railroad Company. They were recognized as valid and the interest promptly met until 1872, when further payment was denied on the ground that the obligation was illegal. Two suits to compel the payment of interest due and refused were de cided adversely to the town in the United States Circuit Court, and were appealed to the Supreme Court of the United States. On the other hand (and this precedent has led to many other contests), the Court of Appeals of the State, before which the matter was brought in other suits, decided that the controverted bonds were issued without power or authority, and ordered that they should be delivered up and canceled. The bonds were, however, transferred to New Jersey holders, in order that suit might be brought in the Federal Court. The Court overruled the Court of Appeals decision, and ordered a verdict of $28,220.87 to be entered against the town. The result in these two cases was watched by a number of towns.

The State Convention of Nationals to nominate State officers assembled at Utica on Angust 29th. William Voorhees was elected chairman. The following nominations were made: For Governor, Harris Lewis; for Lieutenant-Governor, John Wieting; for Secretary of State, P. K. McCann; for Comptroller, John A. Shannon; for Treasurer, Julian Winnie; for Attorney-General, George H. Wright. The following resolutions were adopted:

drawn, and that all money used by the people, wheth1. That the national-bank currency shall be wither gold, silver, or paper, shall be issued by the General Government, and be made a legal tender for all debts and dues, public and private. The volume of such money to be about $50 per capita, or sufficient to meet all the requirements of trade.

2. That the established volume of currency shall be increased from time to time in direct ratio with the increase in business and population of the country, 80 as to maintain for a dollar, or as nearly as possible, uniform purchasing power.

3. That all new issues of paper money shall be used to cancel the interest-bearing debt of the nation, to promote needed public improvements, and to pay the current expenses.

of the nation shall be used to cancel the interest-bear4. That the surplus of money now in the Treasury ing debt.

B. That the national Government shall issue an more interest-bearing obligations, and that the outstanding bonds shall be paid and canceled at once. 6. That postal savings banks shall be established. 7. The equal taxation of all property.

8. That the salaries paid to the public officers shall be reduced to the basis of a just compensation for

services rendered, and all unnecssary offices abolisned. 9. That there shall be proper legislation for the purpose of collecting and preserving reliable statistics to form a basis of intelligent action on all labor questions, to the end that labor may be fully and constantly employed and justly compensated.

10. The establishment of just and equitable rates for railroad fare and transportation.

11. That the Legislature at the earliest moment possible shall pass a law giving to mortgagees of real estate a right of redemption after five years of the sale. 12. That reasonable land limitation laws shall be enacted to prevent land monopolies.

13. The abolition of the State Prison contract system. 14. That no political assessments of candidates for office or officeholders shall be permitted in this party. 15. A reduction of legal rates of interest.

16. That debt due for labor performed shall take the precedence of all other claims."

17. That no more public lands shall be voted to corporations, but that they be held for actual settlers. 18. That we favor a tariff which shall protect American industry and manufactures.

19. That the Government should faithfully perform its pledge made to the Union soldiers at the time of enlistment, to wit: That they receive 160 acres of land on being discharged. Fee simple and equitable payment per month of each soldier according to the value of full legal-tender dollar.

The Republican State Convention for the nomination of State officers was held at Saratoga on September 3d. William A. Wheeler was chosen President, and the following State officers were nominated: For Governor, A. B. Cornell; for Lieutenant-Governor, George G. Hoskins; for Comptroller, James W. Wads worth; for Secretary of State, Joseph B. Carr; for State Treasurer, Nathan D. Wendell; for Attorney-General, Hamilton Ward; for State Engineer, Howard Soule. The following plat form was adopted:

The Republicans of New York, pledging ourselves anew to national supremacy, equal rights, free elections, and honest money, declare these principles:

1. The Republic of the United States is a nation and not a league. The nation is supreme within its own constitutional sphere. It is endowed with power to guard its own life, to protect its own citizens, to regulate its own elections, and to execute its own laws. The opposite doctrine of State sovereignty is the baleful mother of nullification, secession, and anarchy. Republicanism stands for national supremacy in national affairs and State rights in State concerns. Democracy stands for State sovereignty, with its own twin heresy that the Union is a mere confederacy of States.

2. To refuse necessary supplies for the Government with the design of compelling the unwilling consent of a coordinate and independent branch to odious measures is revolution. To refuse appropriations for the execution of existing and binding laws is nullification. We arraign the Democratic Representatives in Congress as guilty both of revolutionary attempts and nullifying schemes, and we reprobate their action as calculated to subvert the Constitution and to strike at the existence of the Government itself.

3. The safety of the republic demands free and pure elections. The Democratic Congress has attempted dictation by caucus, by threats of starving the Government, and by months of disturbing agitation, to break down the national election laws. We denounce this effort as a conspiracy to overthrow the safeguards of free suffrage and to open the ballot-box to the unchecked domination of the rifle clubs of the South and the repeaters of New York. We declare our uncompromising opposition to any repeal of these just pro

tective laws, and the Republican Senators and Representatives in Congress, for their resistance to this attempt, and President Hayes for his veto messages, deserve and receive our hearty approval.

4. The Republican party neither justifies nor tolerates military interference with elections. It seeks only to protect the ballot-box from the interference of force and fraud. It repels the false charges and denounces the false pretenses of conspirators, who, while professing free elections everywhere, sustain mob law in the South; while inveighing against troops at the polls to protect citizens, refuse to prohibit armed clubs from surrounding the ballot-box to intimidate them; and, while affecting that the soldier's bayonet will overawe free electors, remain silent when the assassin's bullet seals the fate of political independence.

5. We call upon the people to remember that the Democratic party forced the extra session of Congress without warrant or excuse; that it prosecuted its partisan purposes by revolutionary methods; that it persistently obstructed resumption and still constantly presses disturbing measures; that it reopens sectional questions closed by the national triumph, and threatens to repeal the war legislation; that its Southern element answers conciliation only with violence; that its hope of success rests alone on a solid South, and that its triumph would make the South the ruling force of the nation. We recognize that the great body of the people who defended the Union, of whatever party name, are equally patriotic and equally interested in unite in resisting the dangerous designs of a party orgood government; and we earnestly invoke them to ganization under the sway of those who were lately in rebellion, and seek to regain in the halls of legislation what they lost on the field of battle. 6. The successful resumption of specie payments, despite Democratic prediction and hostility, is the crowning element of the Republican financial policy, Followed by returning national prosperity, improved credit, a refunded debt, and reduced interest, it adds lican party is equal to the highest demands. Our another to the triumphs which prove that the Repubwhole currency should be kept at par with the monetary standard of the commercial world, and any attempt to debase the standard, to depreciate the paper, or deteriorate the coin, should be firmly resisted.

7. The claims of the living and the memories of the dead defenders of the nation conjure us to protest against the partisan and unpatriotic greed which expels old Union soldiers from their well-deserved rewards and advances Confederate soldiers to their places.

8. As the pledge and proof of its economy in State administration, the Republican party, in spite of prolonged Democratic resistance, proposed and passed the constitutional amendments which restrict the expenses of the canals to their receipts, and reform the whole system of canal and prison management, and, by extinguishing the public indebtedness and relieving the people from any further tax, effected a great saving in State taxation. These fruits of Republican measures the Democrats have brazenly attempted to appropriate as their own. Appealing to the records in support of our declaration, we pronounce their claims unfounded, and hold up their authors as public impostors.

9. The inequalities of taxation, which press most upon those least able to bear them, should be remedied. To this end the Republican Legislature created a commission to revise the assessment and tax laws and to reach a class of property which now largely escapes; and we remind the people that this salutary reform was unwarrantably defeated by the present Democratio Executive.

10. Moneyed and transportation corporations are not alone the works of private enterprise, but are created for public use and with due regard to vested rights. It is the clear province and the plain duty of the State to supervise and regulate such corporations so as to secure the just and impartial treatment of all interestcd; to foster the industrial and agricultural welfare of the people, and with a liberal policy favor the public waterways and maintain the commercial supremacy of

the State. We look to the inquiry now in progress, under the direction of the Legislature, to develop the facts which will guide to all needed action.

The Democratic State Convention assembled at Syracuse on September 11th. J. C. Jacobs was chosen President, and the following platform was adopted:

The Democratic party of the State of New York in convention assembled, profoundly sensible of the important consequences depending upon the immediate result of their deliberations, do declare and reassert the principles of popular liberty and rights laid down by Washington, Jefferson, and other founders of the republic. We hold to the Constitution with all its amendments, sacredly maintained and enforced, and to the rights of the States under the Constitution. The tendencies of the Republican party to centralization and consolidation are contrary to the principles of our institutions. The United States form a nation in the sense, to the extent, and for the purposes defined in the Federal Constitution, and we resist every attempt to transform it into an empire. We insist on unity, fraternity, and concord, and that the issues settled by the war shall not be revived. We deprecate the efforts of the Republican managers to revive sectional feuds and to rekindle the passions of the past. We demand honest elections, and an honest count of votes. Never again, by fraud or force, shall the popular will be set aside to gratify unscrupulous partisans. The Democracy oppose all favoritism. No single interest or class of persons should be protected at the expense of others. Democracy means the governinent of the whole people for the whole people and by the whole people; but if any class is to receive special consideration, it should be the working people, whom all other governments oppose and crush. The rights of the people should be scrupulously protected from the encroachments of capital and the despotic greed of corporations. The Democracy believe now, as they have always believed, in gold and silver as the constitutional money of the country. We condemn the speculative methods of the present Secretary of the Treasury, the questionable favoritism he has shown to particular monetary institutions or so-called "syndicates," and the extravagance he has permitted in his department in connection with his refunding schemes. We look with shame and sorrow on the disgraceful repudiation of all their professions of civil-service reform by the Executive and his supporters. Federal offices have been freely given for despicable partisan services; leading officers of the Government are making partisan speeches, managing political campaigns, and requiring their subordinates to contribute to campaign funds, in derogation of every principle and promise of an honest civil service. The 104,000 Federal officers constitute an army, moving under a single direction, to keep the Republican party in power, and this vast patronage is now used as a corruption fund against the people. We congratulate the people of New York on the results of Democratic administration in the payment of the State debt, the reduction of expenses, and the diminished burden of taxation. We condemn the efforts of demagogues to create jealousy and antagonism between the city of New York and the rest of the State, when their interests are identical and the growth of the one is the prosperity of the other. The Democratic officers of the State of New York, by the ability and fidelity with which they have discharged their duty during the past three years, by their conscientious application of constitutional tests to the acts of every department of the State government, by their successful resistance to private and partial legislation, and by their economical conduct of the finances and reduction of expenses of the State government, have entitled themselves to the gratitude of their fellow citizens of all parties. The people of New York-farmers, manufacturers, and merchants alike-demand that they shall have all the advantages which accrue to them from their favorable position, and that the railroads they have

chartered and endowed with vast and profitable privileges shall be operated for their benefit and not for their ruin. We therefore endorse as our expression of the foregoing principles the following:

1. Honesty, efficiency, and economy in every department of the government.

2. All property should bear its just proportion of taxation, and we pledge the Democratic party to reform the laws of assessments to that end.

3. Lessening the burdens and increasing the advantages of the working people.

capital under just laws. 4. The equal protection of the rights of labor and

5. The railroads prohibited by law from unjust diecrimination and from favoring localities or individuals. 6. The tolls upon the canals to be kept at the lowest rates possible, consistent with economical and efficient management.

7. The maintenance of the public schools, the pride and hope of a free State.

8. Prisons for the punishment and reformation of criminals, and not for the injury of honest labor, which should be protected as far as possible from such competition.

9. Municipal self-government in local affairs. 10. That the successful efforts of our Democratic Representatives in Congress, in restoring a fair and intelligent jury system and in protecting the freedom of the ballot, and preventing the uncor stitutional interference of the Federal Administration with the State elections, are approved; and the action of the Execu tive in vetoing the legislation designed to prevent the presence of armed soldiers and the employment of paid Federal supervisors and marshals at the polls, and the use of the public funds for this purpose, is denounced by the Democracy of the State of New York. And as the foundation of all liberty and prosperity, privileges and rights under our government, we shall continue to uphold a system of untrammeled suffrage, absolutely free from Federal force or supervision.

11. It is the duty of the State, alike in the interest of taxation, temperance, and equal and exact justice to the community, to make such revision of the excise laws as will better secure the rights of the citizens to life, liberty, property, and public order.

After the adoption of the platform, nominations for Governor were called for and made. The call of the roll was then commenced, but had not proceeded far when Mr. Augustus Schell of New York rose and said:

MR. CHAIRMAN: The delegation to which I bave the honor to belong represents a large portion of the Democratic party. It is one which in past times has been ever ready, ever willing to support all the regu lar nominations of the Democratic party. I myself, for years, and many gentlemen who are with me, for years and years past, ever have been ready in storm and in sunshine to sustain and support that great party. We find ourselves now in a position which has been communicated to the people of this State, which has been communicated to its representatives on the floor of this Convention, that under no circumstances will the Democracy of the city of New York support the nomination of Lucius Robinson. (Great applause, groans, and hisses.) They, however, in making this announcement, desired to convey to our friends and Democrats in New York, that we were ready and willing to support any other name that they might place at the head of the ticket; but our suggestion has been unheeded, and from appearances in this Convention it has been determined that Lucius Robinson shall be nominated as Governor. I desire to further state, in behalf of my friends from New York, and in behalf of the great and noble constituency whose representatives are now present, that the rest of the ticket which shall be nominated by this Convention will receive its warm and hearty support. I desire now to announce to this Convention that the delegation from New York will retire from the hall.

The New York City delegation then left their seats and retired from the hall amid much excitement. The call of the roll of members was then concluded, with the following result: Lacius Robinson, 243; Henry W. Slocum, 56; Clarkson N. Potter, 1; Horatio Seymour, 1. Governor Robinson was thus renominated. The other nominations were: For Lieutenant-Governor, Clarkson N. Potter; for Secretary of State, Allen C. Beach; for Comptroller, Frederick P. Olcott; for State Treasurer, James Mackin; for Attorney-General, A. Schoonmaker, Jr.; for State Engineer, Horatio Seymour, Jr.

Mr. Reeves of Suffolk County moved the following resolution, which was adopted:

Resolved, That the Democratic organizations of the city and county of New York are hereby requested and authorized by this Convention to organize the Democratic voters of that city in support of the nominees of the Democratic party of the State of New York.

Mr. Tabor of Queens County offered the following, which was adopted:

Whereas, The delegates of the organization in the Democratic party in the city and county of New York, known as the Tammany Hall organization, after having been admitted to seats in this Convention, and having participated on terms of exact equality with the representatives of all other county and district organizations in the proceedings of this Convention until the time had arrived for making the nominations to the various offices to be voted for at the next general election in this State; and,

Whereas, The delegates representing such organization did, before any nomination was made and without just cause or provocation, and on the mere pretext and suspicion that the Convention was about to proceed to the nomination of a candidate for the office of Governor; and,

Whereas, Such delegates did declare that they would oppose and defeat, if it lay in their power so to do, the nominee of this Convention for the office of Governor, in the event that the choice should result in the renomination of the present able and efficient Governor, thereby bidding defiance to the will of the State organization and its representatives in convention assembled; and,

Whereas, Such voluntary withdrawal and setting at defiance the will of the Democratic party, as represented by its delegates in convention assembled, is deemed to sever all connection between said organization and the regular State organization of the Demoeratic party in this State: therefore, be it

Resolved, That the Democratic party of this State will not hereafter acknowledge or grant to such organization any prestige or preference over any other Democratic organization in said city and county of New York, but will hear and decide upon the merits of all claims to representation in future State Conventions as the same may arise and be presented by those elaiming a Imission from the respective Assembly districts in said county.

Those who had retired from the Convention assembled elsewhere in the evening, and organized by the appointment of D. D. Field as President. A committee was appointed to report a plan of proceedings, who through Lieutenant-Governor Dorsheimer reported the following:

1. That the Convention now proceed to nominate a candidate for Governor,

2. That a committee of fifteen be appointed by the Chair and announced in the future, which shall be

constituted with power, with reference to the remainder of the ticket, as may seem to them proper.

He then said that in nominating a candidate to be supported for Governor it became proper that he should speak of his qualifications for the office. He nominated John Kelly of New York, and went on to eulogize him as a public official. He closed by proposing that John Kelly be nominated by acclamation. The Chair put the question, and Mr. Kelly was nominated by acclamation. He then made a speech accepting the nomination.

The election was held on November 4th, and resulted as follows: