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16. By amount returned due from Rock Co.'
as per returns,

197 03
Aug. 16. By amount returned due from Fond du
Lac county, as per returns,

56 99
16. By amount returned due from Sheboygan
county, as per returns,

32 45
27. By amount returned due from Iowa Co.
as per returns,

324 68
Sept. 1. By amount returned due from Jefferson
county, as per returns,

45 44
2. By amount returned due from Brown co.
as per returns,

207 28
17. By amount returned due from Dane co.
as per returns,

186 25

-1136 83

5919 97

Deduct revenue in County Treasuries, and

not yet paid into the Territorial treasury,

1698 46

4221 51

The above amount of $1698,46 is due as

follows, as appears from the Treasurers'
books, viz: from Iowa county,

313 84
Brown «

207 28 Green “

18 71 Jefferson county,

98 57 Racine

277 36 Dane

227 37 Milwaukee county,

218 86 Rock

247 03 Sheboyban

32 45 Fond du Lac county,

56 99

$1698 46 From the counties of Walworth, Racine, Manitowoc, Grant, Milwaukee, Crawford, Washington, and Dodge, I have received no returns for the present year.

I am wholly unable to report the amount of unliquidated demands against the Territory, further than the balance of $132,75 as above, from the fact, that the communications addressed to me by mail at this place, are witheld from me by the post-master.


R. L. REAM, Treasurer.


CR. March 26. By cash from Daniel Baxter, on the

sale of 35 bonds of $100 each, $3,500 00 26. By 35 bonds, of $100 each,

3,500 00 Nov. 18. By 2 bonds, of $100 each, in exchange of cash,

200 00

-87,200 1841.

June 30. To cash paid Daniel Baxter on Commis-
sioner's order,

$1,000 00
30. To 10 bonds paid Daniel Baxter on com-
missioner's order,

1,000 00
Sept. 18. To cash paid Daniel Baxter on Com-
missioner's order,

1,600 00
18. To 16 bonds paid Daniel Baxter on com-
missioner's order,

1,600 00 Nov. 18. To cash paid Daniel Baxter, in ex

change of two bonds of $100 each, 200 00
Dec. 4. To cash paid Daniel Baxter, on com-
missioner's order,

700 00
4. To cash on bond, paid Daniel Baxter,
on commissioner's order,



Balance on hand in Territorial bonds,


The above statement shows that under the act providing for the completion of the Capitol, $3,500 were paid into the Treasury on the 26th of March last, by Daniel Baxter, on the sale of bonds; which bonds were issued in good faith, and strictly in compliance with the statue, the proclamation of the Executive to the contrary notwithstanding.

Shortly after the first of November, the contractor informed me that he could make no further use of the bonds whatever; and on the 18th I exchanged $ 200 with him for bonds. On the Commissioner's draft of December 4th, I paid him the balance of the money which had occurred in the sale of the bonds.

I was well aware that the statute contemplated one half the amount drawn for by the Commissioner to be paid in bonds; but considering the situation of Mr. Baxter, the holder of the bonds and the contractor, and having a number of laborers in his employ, and the bonds having become depreciated in his hands in consequence of the Governor's proclamation, I did not consider it a violation of the statute or a deviation from duty to make the payments in the manner above stated. All of which is respectfully submitted,

R. L. REAM, Treasurer of the Territory of Wisconsin. Madison, December 13, 1841.

Document B.


NAL COMPANY. To the Ilonorable, the Legislative Assembly

of the Territory of Wisconsin; The Milwaukee and Rock River Canal Company submit the following REPORT: The work on the canal from various causes has not progressed during the past season with so much energy and effect, as it was hoped it would from the favorable action of the Legislature during its last session; and it is to be sincerely regretted that the work should have been retarded, and the patriotic intentions of the Legislature defeated by obstacles unnecessarily interposed from a qnarter the most unlooked for.

Owing to a want of funds, which it was hoped would be supplied through means of loans, which it was understood, had been negotiated, but which have only to a small extent, been made available, the company have not thought it expedient to let any contracts, during the present season, in addition to those formerly made, except in one case, where the security of the work in progress required it as a measure of safety and protection. This was the guard lock at the dam in the Milwaukee river, which is required to secure and perfect the dam itself, as well as that portion of the canal below the dam exten ding to the town.

This portion of the canal is in a state of forwardness, nearly approaching to completion, and a considerable part of it quite finished. The dam required but a small comparative expenditure to complete it, and the guard lock is so far advanced as to render it safe for the winter-both works will probably be completed by the first day of January next, as will also the greater part of the excavations and embankments throughout the entire section of the canal now under contract; and it is in contemplation to let the water into this part of the canal early in the ensuing spring.

It was the design of the Canal company to put under contract this fall, or early in the winter, the western section of the Canal, including about seven miles of the line at the western termination, had it not been for the difficulties before referred to, relative to the loan, which have been so interposed as to prevent them from carrying out that design. As now situated nothing can with propriety be done in that respect, without further action of the Legislature, but the Company nevetheless stand ready to place that work under contract, if desired so to do by the Legislature, and as soon as the Canal fund can be made available to co-operate in that measure.

The amount which has been paid by the Company, including all expenditures from the commencement of the first survey up to this time, is twenty-five thousand and sixty three dollars and fifty one cents, as will be more fully shown by reference to the accounts in detail on books of the Company.

The number and grade of officers and their compensation in the. employ of the Company is the same as at the date of their last annual report to which reference is made, in case the Legislature should desire further information on that point.

It is a question involving much uncertainty, if not extreme diffculty, for the Company to determine what course to pursue during the ensuing year in their operations which would tend most effectually to carry forward the work and meet the just expectations of the country. Owing to the multifarious difficulties with which the company have had to contend, coming both from officers of the Territory and from individuals hostile to the Canal, the Company have come to the conlusion, that the present system offers but little beneficial results; and that some different arrangement in the control of the Canal or of the canal fund arising from the sale of Canal lands, had better be devised by the mutual assent of the parties interested. The control of both in the same hands can be much more efficiently brought to bear on the work than to have them divided as under the present system. The Canal Company, therefore, in order that there may

be something tangible for the consideration and action of the Legislature, will propose,

1st. That the Territory take the control of the work and let it be conducted entirely by Territorial officers, refunding to the canal company the amount by them expended agreeably to the terms of the charter, and pledge the faith of the Territory for the completion of the canal within the time limited by the charter of the company-or

2nd. That the Territory authorise the company to take charge and dispose of the lands granted to the canal, and apply the proceeds to the construction of the canal; the company giving suitable security for the faithful application of the funds derived from that source, and held accountable to the Legislature annually at every regular session, and all their transactions to be subject at all times to investigation in detail, by any authorised committee of the Legislature, or bya

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