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ditions is the reserved right of repeal. The ultimate and exclusive control of the water power, then unquestionably will reside in the State. That control should be retained and exercised, if it should become necessary, in order to protect the interests and rights of the Territory,care being taken to secure the equitable rights of individuals.

The consideration of the sale made by the canal company, as it appears of record, was the the sum of $27,000, secured by mortgage of the privileges and property of the Hydraulic company, and also a release by the IIydraulic company to the canal company, of water power sufficient to carry eight run of stones.

The investment, therefore, of the Territory in the work of the canal, may hereafter be made by the state of Wisconsin an available and valuable interest.

The answer to another interrogatory, as to the liability of the Territory to pay, within two years any interest for on account of any debt contracted on behalf of the canal, must depend upon the legality of the loans of $11,000.

If the loan of $10,000 is not recognised as lawful, or voluntarily assumed, the interest to be provided for on any debt contracted, cannot exceed 870 a year. • It is not in my power to give the committee any information of service, in reply to the last inquiry of the resolution.

The committee must resort to the company, which will doubtless be able and disposed to make known the terms upon which it will treat with the Legislature.

Very respectfully,
Your obedient servant,




Madison, January 28th. Ilon. A. G. Ellis,

DEAR SIR,—There is a mile in length of the Milwaukee and Rock river Canal, more or less, now under contract or completed.

Of this mile, the different portions of work entirely completed would. amount, in the aggregate, to about a half mile; and would embrace the most expensive sections that have been contracted for—on the remaining half mile the work is half completed.

The dam requires to be graveled; it is completed with the exception of this. The timbers for the guard lock are prepared and half of them are in their place.

It is not in my power to give the information sought for in less general terms. An answer stating the amount paid to contractors, and also the amount necessary to be paid to meet the contracts on the remainder of the work, would be more satisfactory, but this information is not in my possession.

1 am, sir, respectfully,
Your obedient servant,




To the Honorable House of Representativca:

Having prepared a communication in accordance with certain resolutions of the Hon. Council, asking for information relative to the Milwaukee and Rock river canal, and the terms on which the Canal Company would relinquish their rights to construct said canal-and similar resolutions having been adopted by your body, I beg leave to submit for the information of the IIouse, a copy of said communication, with the request that the same may be received as an official paper from said Canal Company, and printed for the information of members, and of the people of the Territory.

On the 18th inst., I had the honor of receiving from the Secretary of the Council a copy of the following resolutions to which I responded briefly and in general terms next day, stating in conclusion, that I would " take great pleasure in uniting with any committee of either house of the Legislaturc, in devising such means and measures as will best tend to secure the rights of the Territory, and promote the public welfare, and which will at the same time secure to the canal company and to the settlers on the canal lands, their respective and individual trights.”

In pursuance of a conversation with you in committee, I submit the following written statement and propositions accompanied by a copy of the resolutions as follows:

Resolved, That the Milwaukee and Rock river canal company be requested to communicate to this House, a statement in detail of the expenditures of said company, stating how much has been expended for work donc on contracts-how much for salaries and compensation of officers and agents-how much for obtaining the grant of lands from Congress-how much in vaking the survey and location of the canal ---how much for printing, and how much for other incidental expenses.

That said company be aiso requested to communicate to this House, for what sum, and upou what ieros, if any, it will surrender to the tcrritory the privileges of its charter, and its interests in the portion of canal constructed, and also all and every contract or conveyance by which any portion of the property or rights of the canal company, and of its interest in any water power or water rents, may have been bargained or transferred to any person whatsoever-and particularly any interest with the Milwaukee hydraulic and manufacturing company, relative to the sale of any water power or interest therein--and also to furnish all such information as may be of service to the Legislaturc in considering any proposal which may be submitted by said company.

Resolved, That the select committee to whom was referred the subject of the Milwaukee and Rock river canal, bc authorized to confer with the proper officer of said canal company, on the subject embraced in the foregoing resolution, and to receive any communications relative to the same, which may be submitted by said officers.

Resolved, That the Secretary be instructed to furnish the President of the Milwaukee and Rock river canal company with a copy of the foregoing resolutions.

It will be unuecessary for me to travel back in the history of the canal grant, and organization of the canal company, to show the relative position of parties, and the nature and extent of their rights and interest involved, as the Legislature is presumed to be familiar with the whole subject-suslice it to say that the grant of land was obtained through the sole agency of the canal company without any aid or co-operation whatever on the part of the Territory—so that whatever interest the 'Territory may have in that grant, has been conferred upon it as a gratuity, through the unaided exertions of the canal comрапу.

This proposition will not be controverted by any one, it belongs to the written history of the country, and is not therefore susceptible of denial or misapprehension.

The grant was made by Congress for the express purpose of aiding the construction of " the Milwaukee and Rock river canal, and for no other purpose whatever "-said canal to be under the sole direction and control of the canal company, agrce:bly to the provisions of the act of incorporation expressly sanctioned, and the rights of the company expressly recognized by the act of Congress making said grant. No right of property in said lands is conferred upon the Territory, nor can any title to said lands ever vest in the state which may hereafter be admitted unless the state shall accept of such title subject to all the conditions of the grant, by an act to be duly passed by the Legislature of the state, expressly assenting to such conditions.

So far then as the relative interest of the Territory and Company are concerned, it is obvious that that of the latter is much more sacred than that of the former--for all the necessary expensc, labor and trouble of obtaining the grant, was incurred by the company, without aid of any kind from the Territory, not even a memorial, asking for it on the part of the Territory—but this is not all. ' The company have since the date of the grant, made very considerable expenditures from their private means, in exploring surveys, location of the line, and construction, on the faith of expenditures to be made by the Territory of funds to be derived from those very samo lands which had been placed at its disposal by the canal company.

The Territory, as such, has not at any stage of the proceeding, e spended a dollur either towarıls procuring the land, nor in the consiruction of the canal-nor has it expended for any beneficial purpose) out of the proceeds of those lands, but little more, if so much, as the canal company have from their private funds. The interest then which the canal company claims to have in the proper disposition of those lands is greater than the territory can possibly have for the reason that they have a real, bona fide money interest in them, while the territory has no such interest. The acquisition of those lands having cost the company much money and labor, while they are an entire gratuity to the territory.

But there is a third party deeply interested in the disposition of these lands, whose individual rights are of a higher and more sacred character than either of the others—I mean the purchasers of those lands who were either settled upon them before the grant was made, or have subsequently purchased with the expectation that the work on the canal would be vigorously prosecuted. How or by what means this just expectation has been disappointed, is not a subject of inquiry in this place—my only purpose here being to impress on the Legislature the nature of the interests involved, and the importance of guarding religiously the sacred rights of individuals, at the same time those of the public are cared for; and to claim the protection of law for an unfortunate corporation against the assaults of prejudice and misrepresentation.

And there is yet another party, composed of the whole people of the Territory, citizens, farmers, miners, artisans, and business men of every grade, who are deeply interested in the disposition which may be made of these lands, and in the success of some public measure based upon the fund which may be derived from a source thus placed at the disposal of the Legislature. An enlightened and liberal policy adopted at this time under the existing state and condition 'of the various interests involved, will, beyond a doubt, secure to the public benefits of great importance without infringing the rights and interests of the other parties concerned.

This I conceive to be the great desideratum and will endeavor to present a specific plan, which will meet all the conditions of such a proposition.

Let it be assumed then, that the first and paramount object of all parties is, to absolutely secure the construction and successful oper

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