Cornwall-Massena Public Law 85-108 (85th Cong., H.R. 5728) authorized the St. Lawrence Seaway Development Corporation to participate with the St. Lawrence Seaway Authority of Canada in the ownership and operation of a toll bridge company, provided that the U.S. portion of the revenue from the tolls charges to the users of any toll bridge so operated be applied solely to the cost of the bridge, including the maintenance and operation, the amortization of the investment in the bridge system, and interest on the bridge investment. In September 1957, the two Seaway entities each acquired an equal number of shares of all the outstanding stock of the Cornwall International Bridge Co., Ltd., a company incorporated under the laws of the Government of Canada. The United States, by investment in the Cornwall-Massena International Bridge system, acquired a one-half interest in the Cornwall International Bridge Co., Ltd., and the right, title, and privilege to collect tolls on an international highway bridge between the United States and Canada. The Seaway entities were obligated to relocate all of the railroad and highway facilities as a part of the cost of the Seaway. The investment of $2,198,378 in the bridge system as shown in the financial statement represents the purchase of the bridge company and the amount paid over and above what was required for the final relocation plan and program, and is considered the amount properly allocable to the Cornwall-Massena International Bridge system for recovery from highway bridge tolls. The bridge system comprises: 1. Raquette River bridge, approximately 384 feet, crossing the Raquette River at Rooseveltown, N.Y. This bridge will become inoperative in 1961 with the opening of the new multilane highway now under construction by the New York State highway authorities. 2. South Channel bridge, approximately 3,480 feet in length, spanning the Seaway navigation channel between Cornwall Island and the U.S. mainland. 3. North Channel bridge, approximately 1,358 feet in length, spans the channel between Cornwall Island and the city of Cornwall. A new span is under construction about one-half mile east of the present bridge. This span is scheduled to go into operation during the latter part of 1961. Automatic toll-collection equipment was installed at this international crossing during June 1960. The installation was made on a temporary basis at the old bridge and it will be relocated to a new toll plaza which is being constructed on the south approach of the new North Channel bridge. An administration building with adjoining workshop will be located on the south approach of the North Channel bridge. The Menihek Lake, deep in the water with a lading of iron ore, passes under the graceful span of the Cornwall-Massena International Bridge. The bridge system is operated by the two Seaway entities through a board of directors and officers appointed for that purpose. Each entity has four directors on the board. Except for the bridge manager, all officers and directors of the bridge company are also officers of the Seaway entities. The Directors of the Bridge Company are: Representing the St. Lawrence Seaway Development Corporation E. Reece Harrill, Assistant Administrator Representing the St. Lawrence Seaway Authority R. J. Rankin, President L. A. Couture, Counsel P. E. R. Malcolm, Secretary and Director of Administration By agreement between the Seaway entities, the annual revenues of the bridge company are to be used and distributed in the following order and priority: 1. For the payment of all operation and maintenance costs of the bridge. system. 2. For the payment of the amortization of the investment in the North Channel bridge. 3. The balance is to be divided equally between the two Seaway entities as a payment in lieu of rentals, use of right-of-way over bridges, management fee, etc. The following is a summary of the earnings and the distribution of bridge revenue in Canadian dollars through September 30, 1960: Total net income of bridge company to Sept. 30, 1959. $492, 397.88 Total net income of bridge company, Oct. 1, 1959, to Sept. 30, 1960 212, 041. 12 Total revenue available for distribution____ Less annual amortization of cost of North Channel bridge to date____ Balance distributed equally to the 2 Seaway entities. Each received in Canadian funds_ 704, 439.00 75, 842.94 628, 596. 06 314, 298.53 Converting the Canadian dollars into U.S. dollars, the receipts from the bridge system amounted to $325,642.57. In accordance with the provisions of Public Law 85-108, all revenues received from the bridge company have been returned to the U.S. Treasury. There follows a summary of the receipts, their use, and the status of the Seaway Corporation's original investment in the bridge system. Receipts from the bridge system___ $325, 642. 57 272, 328. 63 Balance applied on revenue bonds used to purchase the Corporation's investment in the bridge system_-Unamortized balance of revenue bonds applicable to bridge system__ 2, 145, 064. 01 Total investment in bridge company as shown on financial 53, 313. 94 2, 198, 377.95 There follows a comparison of the revenue-producing traffic during the last 2 years of operation of the bridge company. The Cornwall International Bridge Co. is a Canadian crown corporation and is subject to the laws, rules, and regulations set forth under the Financial Administration Act, Chapter 116, RSC 1952, of the Canadian Statute. The bridge company is subject to audit by the Auditor General of Canada. The following is the summary report of the Auditor General made to the shareholders for the year ended September 30, 1960, with comparative figures for the year ended September 30, 1959. The amounts are expressed in Canadian dollars. AUDITOR GENERAL OF CANADA, To the Shareholders, Cornwall International Bridge Co., Ltd., Cornwall, Ontario: I have examined the balance sheet of Cornwall International Bridge Co., Ltd., as at September 30, 1960, and the statement of income and expense for the year ended on that date, and have obtained all the information and explanations I have required. My examination included a general review of the accounting procedures and such tests of accounting records and other supporting evidence as I considered necessary in the circumstances. In my opinion, the accompanying balance sheet is properly drawn up so as to exhibit a true and correct view of the state of the company's affairs as at September 30, 1960, and the statement of income and expense presents fairly the results of its operations for the year ended on that date, according to the best of my information and the explanations given to me, and as shown by the books of the company. (Signed) A. M. HENDERSON, Auditor General. |