20th June, 1851, at the Bank of America, or some other bank in the city of New York. The above items you will have duly entered in the books of the Secretary of the Territory, in which an account of the canal loan is kept, for the greater security of Col. Doughty, the holder of the bonds-also the bond No. 31, payable at the same time and place, formerly issued in my name or bearer, has been transferred to Col. D. and will be so entered by the Secretary.

Owing to a misprint in the bonds, I have agreed with Col. Doughty, on behalf of the Territory, to have new bonds issued and exchanged for those now delivered to him, as soon as the same can be done and executed; for which purpose I will bring on with me some paper of the most approved quality; the paper of the present bonds being ve

ry poor.

Very respectfully,

Your obedient servant,

BYRON KILBOURN,

Agent of Wis. Ter. to negotiate canal loan.

[COPY.]

EXECUTIVE DEPARTMENT, Ton, Sept. 1, konsa,

Madison,

1841.

SIR,-I have the honor to notify you that all authority conferred upon you by an instrument bearing date the thirteenth day of May, 1841, and signed by the late Governor of this Territory, empowering you to trasfer in the name of the Territory, certain certificates of stock, which had been before executed by the late Executive, and all similar authority conferred upon you by any previous instruments of any other like character, is hereby revoked and annulled.

You will please return forthwith to this Department, any and all such certificates of stock as now may remain in your hands, or under your control, with such a report of your acts, under the authority above referred to, as you may think proper to make.

Very respectfully,

Your obedient servant,

J. D. DOTY.

BYRON KILBOURN, Esq., Milwaukee, Wiskonsan Ter'y.

[COPY.]

NOTICE

Is given to the public, that Byron Kilbourn, Esq., of Milwaukee, is not authorized to sell, or otherwise dispose of any bonds or certificates of stock, made by the late Executive of the Territory of Wiskonsan, in virtue of the provisions of the act entitled "an act supplementary to the several acts relating to the Milwaukee and Rock river canal," for the sum of one thousand dollars each, and bearing date the 15th day of March, A. D. 1841; as no authority was given by said act, or any other act, to said Kilbourn to negotiate a loan upon the said bonds or certificates of stock.

Madison, Sept. 2, 1841.

J D. DOTY, Governor.

Document M.

COMMUNICATION OF BYRON KILBOURN, PRESIDENT OF THE MILWAUKEE AND ROCK RIVER CANAL COMPANY.

To the Honorable House of Representatives:

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 House, a copy of said communication, with the request that the same may be received as an official paper from the 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 Legislature, 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 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 making the survey and location of the canal -how much for printing, and how much for other incidental expen

ses.

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 thereinand 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 comníunications 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 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-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 whatever 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 dollar either towards procuring the lands, nor in the construction 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 disposi tion 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 that 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 expectatian 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 interest 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 all unfortunate corporations 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.