from the upper part of the town, along the bank of the Milwaukee river to the first dam, in length about a mile.

This portion of the work, which is said to be more expensive than any other of similar length on the whole contemplated route, is rapidly advancing, and in all probability will be ready early in the ensuing season to supply such mills as may be erected.

The Dam will be completed at an early day, a portion of graveling is now all that is wanting, it is a structure well adapted in its place to the location in which it is placed, and is built in a durable manner and at a small expense. The timbers for the guard locks are framed, but a short time will be required to place them and to complete the lock. The section work, part of which is completed, and nearly all of which is under way, appears to be faithfully executed.' It would be superfluous in me to speak of the advantages and feasibility of the whole project; to you and to all parties its particular merits are familiar. I would merely remark, that I have revised the estimates for the whole work; that I consider them liberal, and believe that the description of work can be done for the specified prices.

In accordance with that part of the act which requires the Chief Engineer to report such views and opinions in regard to the Canal as are to its interest and to those of the Territory, I would beg leave respectifully to submit to your consideration the following views in regard to the management of the work. They have been suggested in part, by comparing this with other works of a similar kind with which I have been familiar, and by knowing from experience that nothing is more necessary to the successful prosecution of such an undertaking, than, not only to unite the efforts of all its friends, but, especially to secure a firm and united action on the part of those intrusted with its direction. According to the present system, the management of the work is entrused to theCanal Company, and to the Board of Commissioners. One Engineer is appointed by the Company, and another by the Governor to act on the part of the Territory.

The location and construction of the canal are exclusively in the hands of the Company; they form the plans, let the contracts, and

employ their own Engineer to superintend the construction. The Commissioners on the part of the Territory disburse the money arising from the lands donated by Congress, they pay for work done on contracts which they have approved, the estimates for which have been certified to by the Chief Engineer.

The duties of the chief engineer principally consist in examining the estimates presented to the commissioners; he may at all times be called on for his opinion in regard to the work, but unless especially called on he does not superintend the construction. The company retain in its hands the right of location, of forming water powers, &c.; rights which may be always exercised to the public advantage, but which are capable of being abused; they may be exercised to advance general interests, or to carry out private ends.

The Territory, by the donation of Congress, subscribing nearly one half of the whole expense of the undertaking, have given all the above privileges to the company, and merely collects and disburses the money arising from the lands.

Such, sir, is briefly the present arrangement in regard to the conduct of the Milwaukee and Rock river canal. I will now briefly state the most obvious objections to it.

There are other disadvantages in this arrangement that are greatiy detrimental to a successful prosecution of the work besides those of a public nature already alluded to. It is true, that the Canal Company may, without consultation with the Commissioners, make contracts and proceed independently with the work, but in order to do so, they must have funds of their own. This to any great extent is not the case, a co-operation with the commissioners therefore becomes necessary. In case then of a disagreement between the two Boards, it is easy to see that the project becomes hampered with difficulties which may be of such extent as to defeat the undertaking. I do not say that difficulties of this nature have already been experienced, probably they have not, as the work already done is of small extent; but, as the work progresses more rapidly, as the operations become more extensive, and as different and conflicting interests arise, such obstacles are to be apprehended.

By the present arrangement there are two Engineers, one acting

on the part of the Company, the other on the part of the Territory; on the former devolve the ordinary duties of an Engineer, and on the latter merely the duty of revising estimates.

The object of this anrangement cannot be secured unless the Territorial Engineer is constantly employed. It is impossible for a person who has not witnessed the progress of the work from its commencement to form a correct opinion either of its stability or its value. I say a correct opinion: we may from a cursory observation be able to make an approximate estimate, or to detect a glaring fault; but in appointing such an officer, more than this is required.

If the Territorial Engineer is constantly employed, and becomes responsible as a professional man, for the stability of the work, the estimates for which he certifies to be correct, he necessarily oversees the construction and gives his directions to the contractors. In this case, there are two officers with similar duties. No work can prosper under the direction of two distinct persons; differences in opinion and management must arise from the natural course of things.

There is another objection to the present system besides those mentioned. It is the expense of an additional board and engineer. This expense for a single year may amount to but little, but if continued year after year, it will form an important item of expenditure. Such, sir, are the objections which exist to the present management of the canal. My duties as an officer of the territory are here properly ended. I would, however, beg leave respectfully to suggest for your consideration, the most effectual method that presents itself to me of obviating the above difficulties, and of enlisting, in favor of the undertaking, public confidence and support.

I would propose that the Territory should be represented in the Board of directors, in proportion to the moneys subscribed by her to the execution of the work; that upon the Board thus constituted, should devolve the duty of choosing the President of the Company, the Chief Engineer of the Canal and other officers; and that all the privileges and duties at the present held by the two Boards should devolve on this. By such an arrangement the difficulties to the present management would be obviated and the interests of the community, as well as those of undivided stockholders, would be represented.

I do not know that the Company would object to a proposal of this nature. It is asking that the stock subscribed in the shape of the lands donated by Congress, should be represented in the Board of Directors; a request which for the following reasons, appears to me but reasonable.

No such privilege is given, in express terms, to the Territory in the act of Congress making the grant, but from the nature and provisions of the act, may not such a privilege be inferred?

The grant was made to aid the construction of a work of internal improvement for the benefit of the people of the present Territory, and of the future State. It was not made to the Canal Company for their particular benefit. By the present arrangement, of this object fully secured?

The act provides that the moneys collected from the sales, or borrowed on the security of the lands, shall be applied under the direction of the Territorial Legislature, the entire right of location and construction, being in the hands of a company from which the Territory is excluded, can they be so applied without the consent of that company?

The act expressly declares that the future State may become a stockholder. The Territory becomes a trustee, not for the Canal Company, but for the future state of Wisconsin.

Certain conditions are annexed to the act. In case the work is not completed within ten years, the future State becomes responsible to the United States for the money received from the lands. Is it not to be inferred from this that the Territory has some power to hasten the completion of the work? Unless represented in the Board she has no such power; she may refuse to approve the contracts of the Company, but she cannot oblige the Company to make others. That is not to be considered a gift which is made on certain conditions the power to fulfil which is withheld.

Congress could not have intended to confer such unrestricted power of applying these funds on a few individuals, (the right of disapproving estimates has more the semblance than the reality of a restriction,) and not only this, but by applying them, the power of compelling the future State to advance more, or to forfeit to the United States those already advanced.

When, by their charter, the company were invested with these rights and privileges, it was presumable that the stock would be taken by the public at large, and that consequently public interest, would be represented in the Board. Now the case is widely differentthe stockholders are comparatively limited in number; the majority of the stock is held by a single individual; the principal expense is -paid by the Territory; and there is no security, that in the construction of the work, the public interest will be exclusively consulted.

On these considerations, I should think that the Territory was entitled to a participation in the privileges of the Company. I do not mean to say that these privileges have been, or are likely to be, abused in the hands that now exclusively possess them; but that public confidence and support cannot be expected to favor the Canal under the present circumstances.

To yourself and to other friends of the improvement, some other and better remedy may suggest itself; I have thought it a duty to state the objections to the present system, being convinced that under it, the undertaking, if it does not altogether fail, will require a very extended time for completion.

The work required on the whole line is of the lightest character, and for facilities of construction, the canal ranks among the most feasible in the United States. It is necessary, however, in a new country where the resources are limited, to unite in its favor the cordial support of all parties and husbanding the limited means to apply them with the most judicious economy. All of which is respectfully submitted.

THOMAS L. OGDEN, Jr.
Territorial Chief Engineer.

MILWAUKEE, November 24th, 1841.