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If so, I do not hesitate to say that it was contemptible-supremely 80, and beneath the imitative genius of any honorable man.

The reason you assign to others for withholding the money is, that you are determined the scoundrels shall not squander it. But if the suits are discharged you are, nevertheless, willing they should have it. Are you prepared to admit, that if you can accomplish by it so desirable an object as the discharge of the suits, you are willing the public money should be absolutely squandered? You cannot possibly make men believe, that money specially applied to finishing the capitol, would be any the more or less squandered, whether the suits are prosecuted or discharged. It would require more fog than ever rose frorn the Four Lakes to hide such a monstrous absurdity.

You warn me of the fearful responsibility I assume by continuing Mr. Baxter in the work, and not commencing suit against him. If it is true that he is a bankrupt, and that nothing can be collected from him, as you assure his mechanics, of what avail would it be to sue him? If all the stories be true, the territory has suits enough against bankrupts already pending; and would it not be wise before we commence against another to get all the work out of him we can?

Again, if I should turn him out of possession and commence suit against him, you would not give me the means of emyloying any one else, except upon the old condition; so that the question is between having Mr. Baxter do all I can prevail on him to do, and having nothing done. You blame Mr. Baxter for not doing more work, and you blame me for letting him do any; and yet, you express great anxiety to have the building finished. But you say it is not right to sue one defaulter and let another pass; therefore Mr. Baxter ought to be sued as well as Mr. Morrison. If Morrison is a defaulter, why do you sustain him? If he is not, much less is Baxter a defaulter. Forty thousand round hard dollars were placed in your hands to build the capitol, and Mr. Morrison as contractor was obliged to receive nothing but these, and if he has not been paid, the default rests upon you or your associates. Mr. Baxter stands as credi{or of the territory in the double relation of purchaser of the bonds, and contractor for finishing the capitol, and as such he has really received nothing from the territory but its bonds, which you have declared to be utterly void. Here is just the difference. Now, sir, permit me, in return, to address a friendly warning to you. Whatever may be the merits of the questions involved in the suits, depend upon it, you can never justify yourself before the people of the territory in the position you now occupy in relation to the capitol. You can never do it—no, never. You are in a situation just now where you can bid them perpendicular defiunce; but if they have the spirit of a mouse, they will one day remember and visit it upon your head.

You say that while I suffer myself to be used in this matter by political demagogues, I have nothing to expect from you. Personally, sir, I ask nothing, and expect less. All I ask is justice in behalf of an “INJURED TERRITORY,” and would to God I could expect that.

I can assure you furthermore, that no man has ever attempted to use me in this matter but your excellency, and you must be tolerably well satisfied by this time that I can't be used. So far, however, as I can make myself useful in guarding the righis and honor of the territory, I hope for the answer of a good conscience that I am used in a good cause. Respectfully yours,

JOHN Y. SMITH.

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ANNUAL REPORT Of the Register and Receiver of the Milwaukee and Rock River

Canal.

To the honorable the Council and House of Representatives of

Wisconsin Territory:

The undersigned, commissioners of the Milwaukee and Rock river canal, appointed by the legislative assembly on the 18th February, 1842, respectfully submit the following, their annual report:

That after receiving the certificate of their appointment, they severally took and subscribed the usual oath of office, and entered into bonds to the governor of the territory for the faithful discharge of their duties, with good sureties; which bonds were duly transmitted to governor Doty for his approval and acceptance.

These bonds were returned by the governor, with a communication containing his reasons for their rejection, “ that the bonds were informal, and that there was no affidavit accompanying them that the signers were worth five thousand dollars after their just debts and liabilities were paid;" together with other reasons, questioning the legality of their appointment.

The receiver of your board subsequently procured the certificate of the district attorney to be endorsed on his bond, stating that the amount recited therein was amply secured, and transmitted it to the governor, offering to comply with any alteration in form which he should suggest as requisite. The governor again returned the bond, briefly reiteratiаg his previous objections.

Your commissioners then deposited their bonds in the secretary's office at Madison and took that officer's receipt therefor.

The bonds and papers of the canal office were duly surrendered to us by our predecessors in office.

On or about the 11th day of June, 1842, one George D. Dousman, claiming to be receiver of the board of canal commissioners, sued out a writ of replevin from the district court against the present and the preceding receivers, which was personally served, and by replevying the volume of township plats of the canal office, and delivering the same to the above named Dousinan. This suit has not yet been reached on the docket of the court. ,

At the July term of the supreme court, an application was made by Thomas J. Noyes for a writ of mandamus against Allen W. Hatch, both parties claiming the books and papers belonging to the office of register, and a stipulation was entered into between the parties, and also between Joshua Hathaway and George D. Dousman, each claiming the books and papers of the receiver's office, and that they would severally abide the decision of the supreme court, and waving all right to a continuance.

The case was argued by H. N. Wells and A. W. Stow, Esqrs. on the part of the application, and adversely by J. E. Arnold and Edward V. Whiton, Esqrs.

The application was unanimously denied by the court.

The undersigned regret to state, that their opponents have dishonorably broken the stipulation aforsaid, by refusing to deliver up the volume of maps taken under the writ of replevin, and neglecting to discontinue the suit in the district court.

Pursuant to the proclamation of the Executive, dated the 26th day of March, 1842, the undersigned, on the 5th day of July last, opened the sale of the tracts of canal lands, therein designated, by offering for sale a single tract, for which no bid was made; and the sale was then adjourned to the fourth day of August following, being the full extent of time which the law authorizes.

In the meantime the decision of the supreme court was had, as before stated.

On the fourth day of August, pursuant to the adjournment, the aforesaid lands were offered, and but one tract was bid for and sold, to wit: The west half of the south east quarter of section 7, town 7, range 18, containing 80 acres, to John Williams, for the sum of two dollars and fifty cents per acre, for which the receiver's bond was issued, and the one tenth part of the purchase money received. That being the last day which the sale could be continued under the proclamation, it was adjourned sine die.

A special report was submitted to the legislature on the 30th November last, on the subject of canal lands about 10 become forfeited for unpaid taxes, upon which the following resolutions were adopted by your honorable bodies on the 9th of December, a copy whereof was received by the undersigned on the 20th, post marked 13th December, a previous copy duly mailed, never having reached its destination. From these facis is inferred an intention on the part of some person unknown, to defeat the object of the resolutions.

Resolved, by the council and house of representatives, That the register and receiver of the Milwaukee and Rock river canal be requested to procure by loan or otherwise, at a rate of interest not exceeding 12 per cent., a loan sufficient to redeem such canal lands, under the mortgage to the territory, as were sold for taxes for the year 1840, and will be forfeited under the laws of the Territory on the 21st inst.

* Resolved, That the legislature will provide by law at the adjourned session thereof, to reimburse said register and receiver for the sunı so lvaved."

Upon the receipt of a copy of the above resolutions, the undersigned endeavored to negotiate the loan; and the best terms which were offered, were as follows:

The register and receiver to execute personal notes at three months on 12 per cent. per an. interest, and a deposite of such of the certificates as might be obtained by the commissioners uncancelled, to be held as collateral security.

The undersigned declined giving their personal obligation.Your receiver then offered, as assignee in bankruptcy, from assets in his hands, to take the loan at four months, bearing 12 per cent. per annum interest, with condition 10 hold all uncancelled certificates as collateral security; and that being a more advantageous offer than could be elicited from other persons, was accepted.

A note was accordingly executed by the undersigned, on behalf of the Territory, to the assignee of Rufus Parks, a bankrupt, for one hundred and fifty. three and 11-100ths dollars, dated the 21st December, 1842, payable in four months from date with interest aforesaid, and the amount has been applied by the receiver on the warrant of the register, to the redemption of nineteen

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