fluous to employ more officers than those absolutely required to' conduct the business relative to the lands until a loan shall be ob tained.

Whenever this state of things shall happen, we feel no doubt but the company will concur with the commissioners, or with any appointing power which the Legislature may prescribe in the se. lection of an engineer, leaving it discretionary with such appointing power to fix the salary with a limitation fixed by law, which the salary should not exceed and in case of the commissioners and directors so agreeing, the salary could be paid, one moiety by the Territory, and the other by the canal company. Consequently, if a competent engineer can be employed for $2,000 per annum, only $1,000 would be chargeable to the canal fund, instead of $3,000 as in the present arrangement.

Some such modifications seem to be demanded for the purpose of curtailment, at a time when from the extraordinary condition of the financial affairs of the country, the most populous and wealthy states in the union are suspending their works for the want of funds to proceed; and at a time, too, when it has been ascertain. ed that the Territory is not, for the present, able to obtain a loan with which to commence the only work for which she has a basis whereon to erect an available fund.

It is, however, believed that by another year the times will be more propitious for obtaining a loan; and that the Territory may then secure the means without difficulty for progressing with the work under auspicious circumstances. So long, however, as this subject remains in doubt, would it not be in accordance with the dictates of prudence to suspend the greater part of the expenses now chargeable to the canal, which can be done without detriment, and organize the future operations on a more economical ba sis.

The present year's expense for commissioners and engineer, amount to $6,200, without there having been expended one doilar of public funds for the promotion of the canal. The only official duties which have been performed by the commissioners being to dispose of the occupied lands, the receipts from which are under.

stood to be about $13,000, and the only professional duties discharged by the engineer being to express his opinion in regard to the location of the canal line, and its cost of construction.

The location of the canal was completed in April last, and a plat and profile immediately prepared by the company's engineer, Mr. Lapham, and forwarded to the Governor and to the Commis sioner of the General Land Office, from which the canal lands were set off and designated, preparatory to a sale thereof by the canal commissioners. In June, a letting of jobs took place under the direction of the company, at which several sections of the ca nal were put under contract. One of the contractors, Mr. Petti. bone, has commenced operations, and has notified the board of directors that he is willing to continue his operations through the winter, on a portion of the work which can be done with much better effect at that season than any other, and he will advance his own means for that purpose, to be remunerated whenever the company shall obtain funds to meet it, or whenever a loan shall be obtained by the Territory, applicable to that purpose. These jobs have been let on favorable terms, and we feel a confidence in their completion within a year or eighteen months, so far as to make the water power at this place available, even if the times remain unfavorable for a loan. This water power being improv. ed will enlist the capital and enterprize of business men to such an extent as will ensure at an early day the completion of the canal itself, and thus extend to our interior country, which is even now one of the most productive in the fertile west, the full benefits of a water communication with the lakes.

Your memorialists would further respectfully represent, that the present amount of population, and the increased productions of the country, afford facilities for the performance of labor which would justify the expenditure, within the next year of at least $100,000. This sum could be economically and beneficially expended, and should the condition of the money affairs of the country be such as to enable the Territory to effect a loan to that amount, we feel justified in the expression of the opinion that good policy would dictate the measure. This would require an additional appropria

tion of $50,000, which could be negociated with the present bonds for $50,000, and thus provide the means for the successful com. mencement of a measure in which nearly every portion of the Territory have a deep interest, either by its direct operation, er by its influence on other similar works, which will ultimately form the links of a great chain of interior communication, uniting the interests of all sections in one common bond.

From the peculiar position of the canal company towards the local government of the Territory in relation to this enterprize, we have conceived it our duty as well as our privilege to present the facts and views herein contained, for the consideration of the Honorable Legislature; and we feel assured that whatever we may have advanced which may be worthy of consideration, will receive due attention from your honorable body.

That the canal is a measure which will ultimately be of immense public utility we do not conceive admits of any doubt, and that it will receive the fostering care and attention of the Honorable Lc. gislature, your memorialists, as in duty bound, will ever pray. Adopted in meeting of the board of directors, on the 25th day of November, 1839.

BYRON KILBOURN, Pres't.

JAS. H. ROGERS,

JOHN S. ROCKWELL,

S. D. COWLES,

GARRET VLEIT,

W. R. LONGSTREET,

Directors.

Document H.

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

To the Honorable House of Representatives:

The undersigned begs leave to state, on behalf of the board of directors of the Milwaukee and Rock river canal company, in re. sponse to the resolutions of your honorable body, adopted on the 9th inst., and transmitted to the subordinate officers of the compa. ny, that on the receipt of those resolutions, the undersigned was on the eve of departure to this place, having a conveyance then engaged that the time required to make a detailed statement upon all the points requested, would be such as probably to defeat the beneficial results designed, as regards the present action of the Legislature that those resolutions, however, were laid before the directors, as the proper source of action on the part of the company, agreeably to the act of incorporation-that the board authorized me, on their behalf, by resolution, to give such informa tion, generally, touching the affairs of the company, as might be desired by the Legislature, or by any committee of either House; and to state, definitely, the views of the board on the following points:

1st. That, if desired, they will report annually to the Legisla. ture, all the facts connected with their operations relative to the canal, embracing the points covered by the aforesaid resolutions, and such other matters as they may deem useful to the public, or of interest to the Legislature, as agent on behalf of the people, and of the future state of Wisconsin, as connected with that mea.

sure.

This the company are not required to do by their charter, nor have they been subsequently requested to do it, until it was too late for the use of the present session; which reason alone was

deemed sufficient to excuse their neglecting to make such a report at this time. They have nothing to conceal, and will freely at all times, when desired, exhibit their books and transactions to the Legislature, to the canal commissioners, or to the public; and had the Legislature expressed, at an earlier day, its desire to receive such a report, the company would promptly and voluntarily have complied.

2nd. That so long as the company exist in their corporate capacity, and bear a part in the prosecution of the canal, they con. ceive themselves entitled to exercise all the rights and privileges conferred by the act of incorporation.

3rd. That the company will at any time, surrender into the hands of the Territory, all the privileges conferred by the charter, and all property purchased by, or donated to the company, or to other person on behalf of the company, on condition that they can be assured of the vigorous prosecution, and early completion of the canal by the Territory.

any

This has all along been the feeling of the company-was so clearly expressed by me to a member of the committee, when in. terrogated on this point at the last session, and has been repeated by the board of directors in their recent memorial. The company, however, feeling anxious for the complete success of this measure, and believing it impolitic for the Territory to incur a debt, over and above the value of the lands appropriated by Congress for this purpose, have not ventured to propose such a measure to the Le. gislature. With the means now in the hands of the Territory, it is believed, that, with the judicious co-operation of the canal company, the work may be completely successful, and yield immense benefit to the whole country, without involving it in debt, and con. sequent taxation, to the amount of one dollar.

4th. That during the two years since the formation of the company, their expenditures have been but about eight thousand dollars. This includes all the expenses of the company, in running the first experimental levels-in obtaining the grant of land-in running the subsequent random levels, necessary to the location of the canal, and the final surveys of location; all of which have required