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 rights."

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 done 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 uaking the survey and location of the canal -how much for printing, and how much for other incidental expenses.

That said company be also requested to communicate to this House, for what sum, and upon what terms, if any, it will surrender to the territory 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 thercinand also to furnish all such information as may be of service to the Legislature 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, be 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 unnecessary for me to travel back in the history of the canal grant, and organization of the canal company, to show the rela

tive 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-suffice 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 whateyer interest the Territory may have in that grant, has been conferred upon it as a gratuity, through the unaided exertions of the canal company.

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, agreeably 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 expense, 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 same lands which had been placed at its disposal by the canal company.

The Territory, as such, has not at any stage of the proceeding, expended a dollur either towards procuring the lands, nor in the construction of the canal-nor has it expended (for any beneficial pur

pose) 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 oondition '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

ation of a work of some description, which will afford such facilities as will enable the people of the territory to send their various products cheaply to market, receive groceries and heavy commodities of all kinds entering into the trade and necessary consumption of the country in return, and improve the means of all the commercial operations of the country in which the whole people of every grade and pursuits are more or less directly interested.

Such was the design when the grant of land was sought for at the hands of Congress; and such was the object of the grant when made and let me here add, such has been constantly and is now the great and leading objects of the canal company.

That such has hitherto been the wish of the company will be seen by reference to my response to certain resolutions of inquiry made by the House of Representatives, Dec. 23, 1839, and that such is still their wish, will be satisfactorily seen by the report of the company to the Legislature at its present session, and by the suggestions herein contained. In my reply to those resolutions in 1839, on behalf of the company, it was proposed that the company surrender all their privileges by simply being refunded the amount which they had expended, and having proper assurance that the canal should be completed agreeably to the act making the grant. And I now renew that proposition in all its parts, and adopt the communication, thus made to the House, as a part of this commnnication, and submit it to the committee, and to the Legislature as the specific proposition as the basis of an arrangement into which the canal company are willing to enter, if adopted by the Legislature. Here then, is a clear and distinct proposal of which the Legislature may avail itself with all the benefits to be derived from the grant of land, and obtain an entire "divorce" from the canal company, by simply paying their expenditure agreeably to the charter, and agreeing to finish the canal-should the Legislature not think it expedient to accept this proposal, as on a former occasion, but should think it more conducive to the interest of the country to change the policy of improvement by the adoption of a railroad instead of a canal, then and in that case, acting on behalf of the canal company, I am prepared to so vary the former proposition as to make it appli

cable to that end, but in other respects in substance the same as that proposition.

It is assumed that the Legislature do not desire the canal company to surender unconditionally, the rights vested in them, with a view to the total abandonment of all improvement, and it is also assumed that the Legislature would not desire to apply the proceeds of those lands to the construction of any public work in other portions of the country whereby the settlers on those lands would be compelled to pay for improvements in which they had no direct interest. The sense of justice which I know pervades the Legislature, would recoil from an infliction of palpable wrong on a citizen of the territory—and the sound policy of that enlightened body, would certainly prevent them from taking a backward march, and refusing to avail themselves and the country of a valuable improvement, the means of accomplishing which successfully are entirely within their control.

Assuming thus much then, as self-evident, the canal company are willing to surrender their right to construct the canal beyond the point where the line leaves the Milwaukee river, provided that the Legislature adopt such measures as will secure the construction of a railroad through the same tract of country. This is the general propositions the details of which I am satisfied may be so filled up as to meet the wishes of all parties concerned. I trust the details herein submitted will be found satisfactory, but if they should not be, the company will be ready to adopt any modifications which the Legislature may desire, and which may be deemed more expedient, conditioned at all times, and under all modifications, that either a caual or railroad is to be constructed, and not abandoned until completed and carried into full operation.

My convetion is clear that a railroad may be so constructed, not only through that part of the country in which the canal grant lies, but also entirely across the Territory to the Mississippi, without involving the Territory in any liability whatever-not to the amount of a dollar—and at the same time relieve itself from liabilities already incurred by its connection with the canal-and not only so, but also relieve the purchasers entirely and without condition, from the payment of interest first due on their purchases, and from the payment