tffi' 
 
 /if 55 (i\ 
 
 tr ij-i $; 
 

 0^0 
 
 SAC 
 
 A.<£.M.i 
 
 The date shows when this volume was taken. 
 
 To renew this book copy thecall No. and give to 
 J, the iibrarian. 
 
 HOME USE RULES. 
 
 All Books subject to Rocall. 
 
 Books not used for 
 Instruction or research 
 are returnable within 
 4 weeks. 
 
 Volumes of periodi- 
 cals and of pamphlets 
 are held in the library 
 as much as possible. 
 For special ,. purposes 
 they are given out for 
 a limited time. 
 
 Borrowers should 
 not use their library 
 privileges for the bene- 
 fit of other persons. 
 
 Books not needed 
 during recess periods 
 should be returned to 
 the library, or arrange- 
 ments made fof their 
 ^ return during borrow- 
 er's absence,if wanted. 
 
 Books needed by 
 more than one person 
 are held on the reserve 
 list. 
 
 Books of special 
 value and gift books, 
 when the giver wishes 
 " it, are not allowed to 
 
 circulate. 
 'Readers are asked 
 ^ to report all cases of 
 
 books marked or muti- 
 lated. 
 
 D« not ^etdfe books bjr^markB and writing. 
 
=3^ -^' y^"y > 
 
 <r.-^.' 
 
 ':'--'Mf&Siit''iM ' ^''' 
 
 ^. 
 
 :v :'m^'~ 
 
 ^y 
 
 
 T^^-^-, 
 
 MR. MERRITT'S REVIEW 
 
 f 
 
 
 PRESENT STATE, AND FUTURE PROSPECTS 
 
 Ot THE 
 
 "m§. 
 
 1852. 
 
 WM..:'^'- 
 
t/ ''• ' rs .: 
 
 iol 
 
 
 •l I -l 
 
 A^fa'^'BS^ 
 
 'ViK^tWA'' 
 
 AKY. i.,'..ii ^ ^::-d-.i.: if 
 
 .A.lKittMWr^'* 
 
 
BRIEF REVIEW. 
 
 As few public works in any country have, under similar cir- 
 cumstances, been attended with the like success, it is desirable 
 that the public should be placed in possession of a brief narra- 
 tive of the facts connected with the Welland Canal, as recorded, 
 from time to time, in the Journals of the Province. 
 
 1823. — The first active movement towards the accomplish- 
 ment of this great National Work, was, in obtaining a survey 
 of the country lying between the Chippawa river and the' waters 
 running into lake Ontario,, by Hiram Tibetts, Esq., who reported 
 thereon. • 
 
 1824.— On the 10th of May, a petition for an act of incorpo- 
 ration was presented to the Legislature ; and on the 1 9th day 
 of June, George Keefer, Thomas, Merritt, George Adams, Wil- 
 liam Chisholm, Joseph Smith, Paul.Shipman, John Decow, Wil- 
 liam Hamilton Merritt, and others, were incorporated by the 
 name of the " Welland Canal Company," with a capital of £40,- 
 000, divided into shares of £12 10s. each. The stock was sub- 
 scribed, and the work commenced, on the 30th of November, 
 in the same year. 
 
 One of the most striking features in the history of this work 
 is, that notwithstanding the want of means, opposition, and end- 
 less embarrassment, its prosecution was not discontinued a single 
 day, until two vessels passed from lake to lake, five years after. 
 
 The first project contemplated only the connexion of the Lakes 
 by means of a Boat Canal passing up the valley of the twelve 
 mile creek, to the foot of the momitain ridgp, — ascending from 
 
thonce by a Railway to the Beaverdam, — and thence to the 
 Chlppawa, by a second Boat Canal tunneled through the high 
 land on the site of the present Deep Cut. 
 
 1825. — As public attention was soon directed to, the impor- 
 tance of connecting lakes Erie and Ontario by a Ship Canal of 
 enlarged dimensions,for ^i^hach the amount of the original stock 
 was quite inadequate, on 'the 13th day of April, the act of 4th 
 George IV. was amended by the 6th George IV., and the capital 
 increased to £200,000. 
 
 Every inducement was, held out to capitalists to invest money 
 in the undertaking. As an instance-p^the 15th clause of the 
 amended act provided, " That it should not be lawful for His 
 Majesty, his Heirs or Successors, at any time to assume the said 
 Canal, unless it should appear from the accounts, of the sa.id 
 Cpmpany laid before the Legislature, that the Stockholders shall 
 have received every year, upon an average, the sum of twelve and 
 a half per cent, for every one hundred pounds he shall be pos- 
 sessed of in the said concern." 
 
 Report A. — An able Report, which was published by order 
 of the Board of Directors, at the close of the year, is appended 
 hereto, in order to show that the comprehensive views then en- 
 tertained, are now realized, as well as the reason why the pri- 
 yate Stock was not then subscribed, and the great loss the 
 Shareholders were subjected to in consequence. 
 
 , The present Lord Bishop of Toronto, Dr. Strachan, who was 
 then a member of the Legislative Council, took a warm interest 
 in this magnificent undertaking, from the first, and did all that 
 was in his power to assist and encourage those who were la- 
 boring for its accomplishment. 
 
 As, early as 1825, when the work was in its infancy, bitterly 
 opposed by some, and distrusted and thought hghtly of by others, 
 he drew up a paper setting forth the inestimable advantages it 
 must produce to the commerce and agriculture of the country, 
 and urging its accomphshmentby every effort and at whatever 
 cost. The Directors, partaking those sentiments and opinions, 
 were happy to introduce, with his permission, his eloquent ap- 
 
poal into their Report ; and the paper T have last referred to, 
 with the exception of such passages as relate to the details of 
 the Company's proceedings, contains Dr. Strachan's sentiments 
 and his early views of the character and objects of this great 
 work, in his own language. They are introduced here, from a 
 conviction that it will be no less gratifying to the venerable 
 Prelate than to his many friends, as well as interesting to the 
 public, to observe how clearly he predicted, when the Company 
 Was struggling with its greatest difficulties, the inevitable pro- 
 gress and success of the noble work they were engaged in, and 
 the splendid results it must produce throughout a country which 
 forms a large portion of the globe. When he remarks, in lan- 
 guage which many at the time may have thought extravagant, 
 that the Welland Canal will, in time, yield only in importance 
 to the Canal which may hereafter unite the Pacific with the At- 
 lantic ocean, through the Isthmus of Darien, it is interesting to 
 reflect, that he was then contemplating a work which, after an 
 interval of twenty-six years, "we now find engaging the atten- 
 tion of the business world on both continents. 
 
 1826. — On the 30th day of January, a loan of .j525^000 was 
 obtained from the Provincial Legislature, to enable the Direc- 
 tors to prosecute the work until the remainder of the capital 
 stock could be subscribed in England. 
 
 On the 24th September, Mr. Gait, Secretary to the Canada 
 Company, apprized the Board, that certain Directors of the 
 Canada Company had consented to act^s a Committee, in Lon- 
 don, on behalf of the Welland Canal Company. 
 
 On the 30th of the same month, a despatch wa» received from 
 Lord Bathurst, oflfering, on condition of passing Government 
 vessels and stores free of toll, to advance the same amount to 
 the Welland, as to the Lachine Canal, — one-ninth of the cost, — 
 then estimated at £16,300 sterling, which was accepted, and an 
 act passed accordingly. 
 
 1827. — A grant of 13,400 acres of land was made to the Com- 
 pany, on the 17th February ; and an act was passed authorizing 
 stock to be taken by the Government, to the amount of £50,000, 
 
on condition that the Company should pay the public the interest on 
 the stock so subscribed, until one year after the Canal was com- 
 pleted. The Legislature of Lower Canada also authorized the 
 subscription by their Government, of stock to the amount of 
 £25,000. This timely aid enabled the Directors to prosecute 
 the work with vigor, through the year ; still, upon the Report 
 at its close, it appears that, although 81 per cent, on all the 
 capital stock subscribed, had been p^d in, there remained £88,- 
 879 2s. 6d. to be provided for, to finish the Canal. 
 
 Notwithstanding this large deficiency in the amount of means, 
 and the conviction that any further application for aid to the 
 Legislature would be fruitless, the Directors had no other alter- 
 native but to proceed with the work. The whole line was then 
 placed under contract, and no reasonable doubt of finishing the 
 Deep Cut, (the most diflacult portion of the work,) during the 
 ensuing year, was entertained. Under those circumstances, and 
 after consulting with J. B. Yates,. Esq., who became liable for a 
 large sum of money, the Board deternlined on calling in the re- 
 maining 19 per cent, of stock, and adopting the most efficient 
 means to obtain the residue ; and if practicable, to open the 
 navigation during the ensuing season. 
 
 1828. — This year, from the Report, it appears that the whole 
 amount of stock had been taken up, and a loan of £50,000 ster- 
 ling obtained in England, so that the efforts of the Directors to 
 obtain money, had beei^rowned with success. Also, that the 
 work was so far advanced on the 25th of October, that within 
 ten days the waters of the Chippawa could have been let through 
 the Deep Cut. 
 
 Notwithstanding this apparent favorable position of their 
 affairs, an unexpected obstacle arose, the most disastrous yet 
 experienced. Slips occurred in the Deep Ciat of so extensive a 
 character, that it became indispensable to abandon the original 
 plan of making the river Welland the summit, and to bring a 
 supply of water on a higher level, from the Grand river, in order 
 to pass over those slides. 
 
The Report of this year, closed with the following remarks. 
 "However great has been *he difficulties surmounted, in con- 
 structing so formidable an undertaking to its present advanced' 
 state, the whole pressure has been borne by the Shareholders ; 
 since no aid has been granted by the 'Government, or by the 
 Legislature, — for which the interest has not been punctually 
 paid up by the Company." 
 
 1829. — From the Report of this year, it apcars that James 
 Geddes, Esq., one of the most experienced Engineers then in 
 the State of New York, was employed to assist Mr. Barrett in 
 exploi'ing and estimating the cost of bringing the waters of the 
 Grand river from Barefoot rapids, (now Caledonia,) to the Deep 
 Cut, (now Port Robinson.) 
 
 After receiving the Report of these gentlemen, one entire day 
 was occupied by the Directors, at the Bank of Upper Canada in 
 Toronto, in discussing this important subject, before the plan of 
 operation was determined on. 
 
 It was truly a formidable undertaking. The estimates, which 
 had on former occasions generally fallen short of the expendi- 
 ture, showed £25,000 was to be provided for, over the balance 
 of money on hand, and no other hope or source remained of pro- 
 curing it, than from the Legislature. 
 
 Nevertheless, as the Canal was nearly finished, from lake On- 
 tario to the Welland river, there was good reason to believe 
 that it was practicable to bring water from the Grand river, and 
 that a vessel could be passed through before the close of the 
 season — in which event, the Legislature could not refuse the 
 grant. The Directors, therefore, after mature consideration, 
 determined on making the attempt, and adopted the following 
 plan. 
 
 Bounties were offered for the best plan of a wooden Aque- 
 duct over the river Welland, and a Dam across the Grand river. 
 The remainder of the work was laid out in sections of half a 
 mile in length. Every proposal was to be based on the Con- 
 tractor being paid a portion of the money on hand, and the bal- 
 an(ie after 'the Company obtained tlte means from the Legisla- 
 
ture. Covenants were inserted in each contract, embracing the 
 above condition ; also, that each section should be finished by 
 tlie 16th August : if not, that partt remaining unfinished should 
 be let to any other Contractor ; and that so soon as any one 
 section was finished, the force employed should be placed on the 
 nearest adjoining section thereto, so that the whole effective 
 force should be retained until the waters of the Grand river 
 were let into the main Canal. The Contractors hired their 
 laboring men under similar conditions, and thus every man be- 
 came personally interested in passing a vessel during the navi- 
 gable season, as it was well understood that on this event alone 
 the Legislature could be induced to make a further loan. 
 
 This combination of personal interest produced the anticipa- 
 ted result. Although the season was late — the frost continuing 
 in the ground until the 15th day of April — still the Dam across 
 the Grand rivei-, the Aqueduct over the Welland, four Locks at 
 the Deep Cut, the cut at the mouth of the Chippawa, and, twen- 
 ty-seven miles of Canal, were so far completed on the 9th day of 
 October, as to admit the passing of a vessel from Dunnville down 
 the Feeder. It is questionable whether, apart from the want of 
 money, on any occasion whatever, an equal quantity of work has 
 ever been performed with the same force, in so short a time. 
 
 The Report states : "It is not the intention of the Directors 
 to recapitulate the embarrassing difficulties they had to encoun- 
 ter, during the past year ; but it is just to say, that had it not 
 been for the confidence manifested by the Contractors, the work 
 must have been suspended -altogether. By their indefatigable 
 exertions, under great disadvantages, the Canal was filled • and 
 on the 30th of November, (the anniversary of the day on which 
 the Canal was commenced,) the inhabitants of this District were 
 gratified in witnessing the ascent of two schooners — the Ann 
 & Jane, of York, (now Toronto,) and the R. H. Boughton, of 
 Youngstown, N. Y.— from lake Ontario to lake Erie." 
 
 The commercial intercourse thus opened, was not then appre- 
 ciated, as appears from the following extract from the Report 
 of the Directors for that year. " It has been their mortification 
 
hitherto, to find, that while with the greatest proportion of 
 strangers who visit the province, the Welland Canal seems to 
 possess a particular interest, the inhabitants of Upper Canada, in 
 general, appear to have the most imperfect ideas of the stupen- 
 dous nature of this great undertaking — the rapid strides by which 
 it is advancing to its consummation — and the immense advan- 
 tages to themselves and to their country which must follow the 
 successful termination of a work, that it is probable will be 
 thought hereafter, to reflect some degree of credit upon those 
 by whose encouragement and exertions it has been supported." 
 When we reflect on all the circumstances connected with this 
 undertaking, up to this period, its success appears almost mar- 
 vellous. . 
 
 The disappointment of the Directors in not procuring money 
 from England, is thus alluded to. " The financial arrangements 
 have been attended with difficulties, which they had no reason 
 to expect, because they have arisen from a hesitation to fulfil 
 engagements which the Directors considered to be binding and 
 conclusive, and upon which they, therefore, relied. No such 
 failure, however, has occurred with respect to the Stockholders 
 in America ; and they trust, when pains are taken to contrast 
 authentic information with groundless fears and idle reports, any 
 hesitation which has hitherto been exhibited, will be removed." 
 
 Notwithstanding the inci'eased expense and delay incurred by 
 removing the Dam from the mouth of the Grand river, — the 
 slides and sinks at the Deep Cut, — and from the Company's 
 limited means, it will scarcely be credited, that this great un- 
 dertaking was so far accomplished, for thei very moderate ex- 
 penditure of £272,795. (For details, refer to table No. 4.) 
 
 As a further proof of the want of capital, as well as the little 
 interest felt for the undertaking at this time, only -232 Shares of 
 the capital Stock, amounting to £2,000, was held in all Upper 
 Canada ; and only eight individuals held a sufficient number of 
 Shares to qualify them to become Directors, namely: the Hon. 
 John Henry Dunn, President, Hon. John B. Robinson, W. Al- 
 lan, Henry J. Boulton, D'Arcy Boulton, and Colonel Wells, of 
 
 B 
 
10 
 
 Toronto; George Keefer. of Thorold, and William Hamilton 
 Merritt, of St. Catharines. They never received or looked for 
 any compensation whatever, for their services as Directors ; 
 arid having accomplished the Object for which they undertook 
 this thankless and most arduous duty, they retired, richly enti- 
 tled to the following appropriate remarks of their successors, 
 in 1838. 
 
 " The former Directors are entitled to all praise for their per- 
 severance and patriotism. We would name them individually, 
 but it is unnecessary. The public knows who are, and have 
 been, the undeviating supporters of the undertaking, and by 
 whose exertions the present Directors have the satisfaction to 
 announce, that vessels can now pass from 'lake Michigan to 
 Prescot." 
 
 1830. — After a critical examination of the expenditure, by a 
 Committee of the House of Assembly, who reported on the 
 22nd January, "that, although the transactions in the Books 
 embrace an expenditure of upwards of a million of dollars, they 
 saw very little indeed to censure," the Legislature, by a ma- 
 jority of two, granted a loan of £25,000, which enabled the Com- 
 pany to pay the debts incurred the preceding year. 
 
 Robert Randal, Esq., M. P., was appointed a Commissioner 
 under the above act. He made a very satisfactory Report, in 
 December, and continued to be a steady supporter of the woi'k. 
 
 1831, — On the 16th March, a Loan of £50,000 was obtained, 
 on condition that the Company should furnish individual secu- 
 rity that this sum would complete the whole Canal, Harbors, 
 &c. &c. from lake to lake, without any further grant for that 
 purpose ; and should indemnify the Government against the 
 payment of interest on the said Loan, and one-half the principal 
 of the same. John B. Yates, Alexander Yates McDonell, and 
 Wm. Hamilton Merritt became liable for the amount required. 
 
 This Loan was obtained on an application for a grant of £200,- 
 000, to extend the Canal from the Aqueduct to lake Erie, and 
 finish it throughout, in a durable manner. It was at one time 
 adopted by the House, although subsequently altered to the 
 
above Loan, -which is to be regretted, as it failed to accompiish 
 the desired object. However, it was a partial relief, as it en- 
 abled the Company to avoid the tardy and circuitous naviga- 
 tion of the Welland and Niagara rivers, and thence up to Point 
 Abino — a distance of fifty miles — by making a Canal of only 
 seven miles in length. 
 
 1832. — The Cholera materially retarded the prosecution of 
 the work, this year. A greater number of victims fell a prey 
 to this sweeping scourge, on this part of the line, according to 
 the number, than in any other part of Canada. 
 
 1833. — Messrs. the Hon. John B. Macaulay, Absalom Shade, 
 and William B. Robinson, were appointed Commissioners this 
 year, — the latter gentleman was appointed Superintendant, and 
 was some years afterwards Chief Commissioner of Public 
 Works, and has at all times rendered the undertaking the most 
 active and efficient support. 
 
 Benjamin Wright, Esq., the principal Engineer on the Ei-ie 
 Canal, was employed to report on the work. After a minute 
 examination, we find the following extract, in a letter he ad- 
 dressed to W. B. Robinson, Esq., dated October, 1833 : — 
 
 "I can hardly find words to express what I think of the im- 
 portance of this Canal, (the Welland,) and the auxiliary project 
 of improving the Rapids of the St. Lawrence, to the commer- 
 cial importance of Montreal and Quebec. All the Western 
 World, which is to be inhabited by its tens of millions of indus- 
 trious people, is very much inclined to get on to lake Erie ; and 
 when once there, it will show a great want of enterprise in the 
 people of the two Canadas, if they do not compete for this great 
 prize — they can do it, and will do it successfully. The New 
 York Canal can never accommodate that World, even with all 
 the auxiliary Railroads which can be made. I may be enthu- 
 siastic in my views — I think I am not ; and that Canada ought 
 to be up and doing." 
 
 1834. — The Report of the Directors of the 31st March, closes 
 with the following remarks. " There has been no want of ex- 
 ertion or skill in conducting, or economy in executing this ardu- 
 
12 
 
 ous undertaking. The increased expenses and tedious delays, 
 prdceeded from causes not within their power to control. The 
 changes made in the line of the Canal, its increased dimensions, 
 alterations of the qriginal plan, and removal of the Dam after 
 ' the works had been in considerable progress, involved the Com- 
 pany in great additional expense. The losses, delays, disap- 
 pointments and embarrassments against which the Company 
 have struggled, since the extension "of their charter for Ship 
 Navigation, and the failure in procuring the Stock in England, 
 can only be known by those who had examined the subject. 
 The Stockholders alone, who are the most deeply interested, 
 view the undertaking in its true light, and are entitled to the 
 consideration of the country for the sacrifices they have made, 
 and for the spirited manner in which they have sustained the 
 work. They have laid out of their capital for many years, and 
 have incui-red a positive loss; while the British Government, and 
 Provinces of Upper and Lower Canada, are positive gainers." 
 
 The letter of John B. Yates, Esq., to James H. Sampson, 
 Chairman of Committee, gives a brief review of the Canal, up 
 to the present period. It proves that any attempt to construct 
 the Locks of any other material than wood, would have caused 
 an entire failure ; because it would have called for an expendi- 
 ture which, at that time, it would have been impossible to meet. 
 It establishes, also, that no work of similar magnitude has ever 
 been constructed for the same money. And in that document 
 Mr. Yates declares that, from his knowledge of the country by 
 which the Canal will be supported, he has every confidence in 
 the result, provided means shall be furnished to complete it. 
 
 On the 16th March, the capital was increased to £250,000, and 
 the Government subscribed £50,000 Stock. 
 
 1835. — The Report of this year alludes to the diminution of 
 transportation, caused by the frost and the snow-storm on the 
 night of the 14th May, 1834, which destroyed a great portion 
 of the crops in the Western coutitry, — an event which should 
 not be passed over, unnoticed. Tables were published, giving 
 items of the trade passing the Canal ; and their continuance re- 
 
commended, to point out its relative increase, from year to year. 
 The expenditure during the last six years, was £178,724. For 
 a statement of the description of work performed, refer to Re- 
 port above alluded to. 
 
 1836. — From the 27th January to the 13th of April, a Com- 
 mittee of the Legislative Assembly was employed investigating 
 the affairs of the Company, in consequence of charges of Defal- 
 cation ; and they reported that, although errors existed, no in- 
 tentional fraud had been brought home to any individual officer 
 of the Company ; nor did it appear that the misconduct com- 
 plained of, in this respect, had benefitted any individuals con- 
 nected with the management of the Canal. 
 
 That the Accountants employed, proceeded to balance the 
 Books, from the commencement of their operations up to the 
 present time ; but that the investigation of all the Accounts of 
 the Company, would have occupied them at least six months. 
 After describing the balances of different Accounts, they add, — 
 "But it is quite impossible for the Committee to say whether, 
 upon a general investigation of the whole Accounts, these sums 
 would be increased or diminished." 
 
 "Toronto, 4th June, 1836. 
 
 "P. G. Beaton, Esq. — Dear Sir: At your request, I have 
 examined the Journal and Ledger made by you, fronf the Books 
 of the Welland Canal, and I have nojiesitation in expressing my 
 opinion, that the plan you have adopted is a good one, and I 
 should say the best that could have been taken, to ascertain the 
 real expenditure of the work. Of course, I have not examined 
 into the details, but presume, from the appearance of the Jour- 
 nal, with the references to the original Books, that they have 
 been correctly made out, and they appear to balance exactly. 
 Of your own abilities as an Accountant, I never had any doubt, 
 and I think it would have been fortunate for the Directors of 
 the Company if they had always had you as their Accountant. 
 " Your's, truly, 
 
 (Signed,) FRA'S HINCKS." . 
 
 On the 4th May, the Secretary, John Clark, Esq., having 
 desired a more general investigation of the Accounts th£in 
 Messrs. Hincks and Young were enabled to make, the Board, in 
 
14 
 
 consequence, appointed Messrs. Cameron and Murray. Account- 
 ants to the Canada Company, and the Bank of Upper Canada, 
 who reported on the 8th June, thus : — 
 
 "Toronto, 8th June, 1836. 
 "To the President and Directors of the Welhnd Canal Company: 
 
 "Gentlemen: — In compliance with the request of your Presi- 
 dent and Secretary, and of the order of your Board, of the 4th 
 ultimo, we have, with the assistance of Mr. Beaton, examined 
 the Books of the Company, from its formation to the close of the 
 year 1835, and now beg to present the result of our investiga- 
 tion, in the accompanying concise balance sheet, showing the 
 expenditure on each particular branch, and the receipts of every 
 description. 
 
 Vin conclusion, we have to remark upon the whole investiga- 
 tion, that in consideration of the expenditure of so large a sum 
 of money, throughout a period of twelve years, on pa.yment of 
 Accounts kept with upwards of two thousand individuals, that 
 it is very surprising how few errors have occurred ; and we be- 
 lieve that there are few undertakings of a similar magnitude, 
 the Accounts of which have been so correctly kept ; and the 
 faithful account which the Books afford of the monies receiyed 
 by the Company, must reflect the highest credit on the officers 
 entrusted with their disbursement. We have now to hope, that 
 the result t)f our investigation will prove useful and satisfactory 
 to the Board of Directors of the Welland Canal Company, and 
 that their minds will be now at rest, respecting imputed Defal- 
 cations in the management of the Company's affairs. 
 
 (Signed,) "JNO. M. A. CAMERON, 
 
 Jlccountant to the Canada Co. 
 
 (Signed,) "C. S. MURRAY, 
 
 Book Keeper Bank of U. C". 
 
 From the above it is clear that the system adopted in 1830, 
 by which the House of Assembly appointed a portion of the 
 Directors, who were gentlemen holding no personal interest 
 in the undertaking, produced precisely the result which its op- 
 posers at the time predicted — fruitful and continued contention. 
 The uniform and most determined opponents of the undertaking, 
 Avho had uniformly voted against any grant, and all public aid, 
 were selected for management. The appointment of Directors 
 
was made a party question, and the whole period was wasted 
 in useless strife. It, therefore, became evident, that the system 
 of management must be changed. 
 
 On the 29th of November, a Committee of the House of As- 
 sembly, consisting of Messrs. Jonas Jones, Chairman, Cart- 
 wright, Chisholm, Rykert, Bockus, Robinson, Norton, McKay, 
 and Richardson, report — " That, from a personal inspection of 
 the whole line, they are impressed with the importance of the 
 work. Considering the obstacles to be surmounted, it has as- 
 tonished the Committee to see how much has been accomplished. 
 They recommend making the Welland Canal strictly a Public' 
 Work, on such terms as will combine the principle of ultimate 
 indemnification to the private Shareholders, with a due regard 
 to the interest and convenience of the public." 
 
 The reason assigned was, that the Shareholders had received 
 no' equivalent for their outlay, while the public were amply re- 
 munerated. In proof of which, they remark in their Report of 
 the 17th December, that the revenue at the Ports of Port Erie 
 and Chippawa, had increased from £31, (when the Canal com- 
 menced in 1824,) to £1,068, in 1835. That it is impossible to 
 estimate the value of the erections, and the land on and above 
 it, which already has added thousands and thousands of pounds 
 to the value of the Province, far exceeding the principal and in- 
 terest of the outlay. 
 
 1837. — On the 4th March, 7th Wm. 4th, cap. 92, was passed, 
 which converted all Loans heretofore made to the Company, by 
 the Provincial Government, into Stock, and authorized a further 
 subscription, on the part of the Government, of £245,000, to 
 complete the Canal in a durable manner, with stone Locks. 
 The sale to the Hydraulic Company was cancelled, and the land 
 re-purchased, — the rents having increased to about £1,000 ; and 
 the Canal was placed under ^the control of the Government, by 
 the appointment of three out >of the five Directors. This Act 
 appropriated the income to be derived from the Canal, firstly, 
 towards the payment Of interest on future loans : secondly, in 
 the payment of dividends to private Stockholders until i4 reached 
 
16 
 
 six per cent. ; and thirdly, the remainder .to be applied to tlie 
 payment of interest on the previous advances by the Govern- 
 ment. The cost of management was to be sustained out of the 
 capital, until the Canal was finished. 
 
 1838. — On tfie 12th of February, the Report [Letter B.] ap- 
 pended hereto, was laid before the Legislature. It is alluded to, 
 to show the striking difference of opinion which existed at the 
 time, between the Directors appointed by the Government, and 
 those appointed by the Stockholders. The publication of this 
 ^Report, created a distrust in the minds of the Shareholders, re- 
 specting the future management of the Canal, which led them 
 to petition, for the first time, that the Government would assume 
 the" entire work. 
 
 This year, the Directors report an excess of revenue ov6r 
 1837, of £5,016. Amount of Toll received, £11,704. Hy- 
 drauHc Rents, £1,077. Total, £12,781. Cost of administration 
 and interest, £6,926. Leaving a dividend on the private capital, 
 of 5 per cent. 
 
 The Superintendant, W. B. Robinson, Esq., also reports the 
 clearance of 1,348 Vessels; and anticipates a large addition to 
 the receipts. 
 
 1839. — On the 16th May following, the 4th and 5th Victoria, 
 cap. 48, was passed, authorising the purchase of the private 
 Stock. 
 
 1840. — On the 30th January, an Address passed the Assembly 
 unanimously, praying that the Royal assent would no longer be 
 withheld to the act of 1839, for the reasons assigned in the Re- 
 port, which recommended the property to be re-placed under 
 the control of the private Shareholders. The Royal assent was 
 obtained, in this year, and the Legislature authorized a grant of 
 £500,000, to complete the work. 
 
 It was pleasing to witness the change in public opinion, which 
 took place respecting this undertaking. Every grant had been 
 heretofore closely contested. In 1834, Mr. Justice McLean, 
 the Speaker, of the Legislative Assembly, and always a promi- 
 nent supporter of the Welland Canal, carried the bill by his 
 
casting vote ; and without individual security, it could not have 
 been passed. 
 
 In 1841, on a division, only two out of eighty members op- 
 posed the grant. From this period the interest of the private 
 Shareholders in the work ceased. 
 
 1842. — This year the Government assumed the entire control, 
 and commenced the enlargement, under the superintendance of 
 the Board of Works. The expenditure the last six years, was 
 £114,467 — averaging about £19,078 per year. See Table 1. 
 
 1843. — This year, the aforementioned act was amended, by 
 the act appended hereto, [Letter C] under the provisions of 
 which, Debentures were issued to the private Shareholders, for 
 the amount of the capit&,l paid in. 
 
 The Welland Canal Company have been reproached, from 
 time to time, because the expenditure exceeded the estimates ; 
 but a comparison with any similar work, will prove whether 
 this accusation is well founded or not. 
 
 Hiram Tibbetts, Civil Engineer, made out an estimate to im- 
 prove the channel, in the manner heretofore pointed out, for 
 boats of twenty tons burden, at £10,000. 
 
 In 1825, Samuel Clows made an estimate for a ship Canal, 
 with wooden locks, from the mouth of Grand river to lake On- 
 tario, (41 miles, 8 feet water,) at £179,556 13s. 7d. N. Ro- 
 berts, Geddes, and F. Hall, corroborated portions of the above. 
 
 In 1829, the increased expense of raising the summit to Grand 
 river level, by Messrs. Barrett, and Geddes, was estimated at 
 £54,000. The Port Colborne cut, by Mr. Barrett, at £42,346. 
 
 In 1836, Committee report, that, from the Reports of Judge 
 Wright' and Mr. Hall, and from their own inspection, to make 
 stone Locks 24 feet wide and 110 long, they will not venture to 
 estimate less than £200,000. 
 
 In 1838, N. H. Baird and H. H. Killaly, Civil Engineers, es- 
 timated the cost of rendering the Welland Canal a permanent 
 and efficient work,— locks 24 feet wide, 110 feet in length, and 
 8 feet water, £290,949 5s. 5d. 
 
 c 
 
18 
 
 , Although the original estimate for the Ship Canal exceeded 
 the expenditure by the Company more than double, it did not 
 materially exceed the cost by the Government purchase of 1843. 
 However, in order to provide a remedy, the Legislature passed 
 an Act to prevent any work, in future, exceeding the estimated 
 cost. 
 
 The 15th clause of the act of 1841, which created a Board 
 for the management of our Public Works, provided, that no con- 
 tract should be entered into, or any money expended on any 
 work on which any public money had been, or shall be appro- 
 priated, unless the work can be completed for the sum so appro- 
 priated. Under this act, we have the following estimate of the 
 Hon. H. H. Killaly, Chief Engineer, for the completion of the 
 Welland Canal in a permanent and fully sufficient manner, with 
 CHt stone Locks, 120 by 26, and 8 feet 6 inches water on the sills 
 — £450,000, Sterling — to be expended as follows ; £50,000 in 
 1841, £150,000 in 1842, £150,000 in 1843, and 100,000 in 1844. 
 
 In 1843, the Locks were enlarged to 150 feet by 26 feet 6 
 inches ; and after an investigation by Mr. Power, Civil Engi- 
 neer, that the work could be dOne under the above appropria- 
 tion, the summit was reduced from the level of the Grand river 
 to that of lake Erie. 
 
 In 1845, the whole of the above appropriation was expended, 
 and £178,306 provided for. In 1847, £82,876. In 1848, £l02,- 
 068. In 1850, £134,066. Making in all, £997,316— all of 
 which were sanctioned under the Acts referred to in Statement 
 No. 2. 
 
 From the 9:bove it will be seen, that even an act of Parlia- 
 ment proves no security against an excess of expenditure over 
 estimates. This clause remained a record of the folly of the 
 Legislature which passed it, and has very properly been'repealed. 
 
 Having traced the origin and progress of this undertaking 
 up to the, time it became a Public Work, the amount of public 
 WEALTH created by the construction of this Canal may, in some 
 measure, be appreciated by contrasting the prices of transport- 
 ation before and since it was opened. Then, the price of con- 
 
veying a ton of produce from lake Erie to Montreal, was £3: for 
 a ton of merchandize upwards, £6 12s. 6d. JS'ow, it is reduced 
 to £l 5s. down, and £l Os. up. This immense saving in the 
 cost of transportation, all goes into the pockets of the grower 
 and consumer, and far exceeds any estimate ever made by its 
 most sanguine supporters. In fact, a barrel of flour is trans- 
 ported from lake Erie to Ontario, for one-half-penny less than 
 the mere cost of towing. 
 
 The increase of Customs, caused by the Increased consump- 
 tion created by this canal, which has been often noticed, far 
 exceeds the amount paid for intei-est, without reference to the 
 increase of tolls — and it is morally certain, from the continued 
 increase this year, that the Canal never will, in fact, cost the 
 Public a single farthing ; but, on the contrary, will become one 
 of the most fruitful sources of revenue under the control of the 
 Provincial Government. In proof of which, it is only neces- 
 sary to refer to the well known Report of Colonel Albert, in 
 1850, on the Harbors of lake Erie — the exports from which, in 
 Ohio alone, amounted to the enormous sum of #17,598,656, and 
 imports to $23,986,000. This immense-, trade of upwards of 
 forty millions of dollars, embraces only twelve ports on two 
 hundred miles of coast. What then will be the extent of com- 
 merce along the coasts of those vast inland Lakes, when the 
 contiguous fertile territory becomes as densely populated as the 
 Ohio side of lake Erie is now'! 
 
 In concluding this brief Summary of the Origin arid Progress 
 of the Welland Canal, it may not p(5rhaps, be inappropriate to 
 quote the following extracts from the Report of 1825. 
 
 "No work in Europe or America will bear a comparison with 
 it in usefulness. In touching upon the .mighty results which 
 must soon follow its completion, the truth will assume the ap- 
 pearance of the most extravagant exaggeration, to those who 
 do not make themselves acquainted with the singular geographi- 
 cal position of North America. The interior Seas ahqve the 
 Falls of Niagara, contain more than half thp fresh water on this 
 planet — bounded by upwards of 400,000 square miles of as fer- 
 
20 
 
 tile land as can be found on the globe, and exceeding in length 
 of coast, five thousand miles. These Seas affording the most 
 beautiful and commodious means of internal communication ever 
 seen, on a scale which human science and human labor, or the 
 treasures of a world, cannot rival — can be approached by ships 
 only through the Welland Canal, with which no other work of 
 the kind in Europe or in Asia, ancient or modern, will bear a 
 comparison in usefulness. It is truly a National object, and 
 ought to be executed on a scale of unrivalled magnitude, at any 
 cost, and at any trouble. It will be cheap at five times the esti- 
 mated amount of £250,000. 
 
 "Such is the importance, and such will be the splendid re- 
 sults, of the work now offered to the notice of those enterpri- 
 sing and enlightened capitalists who may be disposed to contri- 
 bute to its completion ; at the same time that they secure to 
 themselves a participation in its advantages, and a share of the 
 liberal profits which it may reas'onably and speedily be expected 
 
 to produce." 
 . . ? 
 This vivid description was comprehended at the time, by few. 
 
 Its truth is now universally acknowledged. Its results have and 
 
 will be realized to the very letter. Who has and who will reap 
 
 the profit — the private Shareholders, or the Public 1 
 
 EXPENDITURE, INCOME, &c. 
 
 The following Statistical Statements are exhibited for the 
 purpose of placing before the public, correct information re- 
 specting the amount - of Expenditure by the Welland Canal 
 Company — the amount paid by the Provincial Government, 
 when purchased in 1842 — the amount expended by the Com- 
 missioners of the Board of Works, from thence, up to 1852 — 
 the annual Income received, and the amount paid for Interest 
 in each year, since the purchase, with an Estimate of the future 
 Income, from 1852 to 1860 inclusive, and the future prospects 
 of the Welland Canal. 
 
TABLE No. 1. 
 
 Statement of the total Expenditure on the Wetland Canal, up to 1842, 
 including Stock, Loans, Grants, Tolls, Forfeitures, Bequests, and 
 other Disbursements. 
 \st. Expenditure on the Canal, up to 1836. (See Report of 
 
 Committee, 17th Dec., 1836. App. No. 3, Journals of 1836-7.) 
 
 AMOUNT OF STOCK PAID BY THE 
 
 Government of Upper Canada, 8,600 Shares, £107,500 
 
 do. Lower Canada, 2,000 do. 25,000 
 
 Individuals in Upper Canada, 297 do. 3,712 10 
 
 do. Lower Canada, 1,106 do. 13,825 
 
 do. New Brunswick, 40 do. 500 
 
 do. New York, 5,570 do. 69,625 
 
 do. England, 2,411 do. 30,137 10 
 
 Forfeited Stock. ... . 540 
 
 Loaned by tlie Province, from 1826 to 1831, 100,000 
 do. do. British Government, 55,555 11 2 
 
 £250,840- 
 155,555 11 2 
 
 Tolls in 1830 and 1831, £3,607 14 8i • £406,395 11 2 
 
 1832, 
 
 2,432 
 
 9 
 
 Si 
 
 1833, 
 
 3,618 
 
 1 
 
 7| 
 
 1834, 
 
 3,719 
 
 1 
 
 n 
 
 1835, 
 
 3,807 
 
 5 
 
 iif 
 
 1836, 
 
 5,059 
 
 3 
 
 2 
 
 Land and Hydraulic Rents, . . 
 
 Exchange, 
 
 Bank of Upper Canada Loan Account, 
 
 Donation of the Catholic Bishop of Quebec, 
 
 George Keefer, J. Davis, S. Smith, ... 
 
 BALANCIS SHEET FOR 1836. 
 
 Lands and Hvdraulic Rents, 453 4 5 
 
 Interest, - ' . - . . 102 U 1 
 
 Issues of Welland Canal Notes, ... 
 
 Various other small items, . - 
 
 £451,519 6 2 
 2nd. Amount derived from Tolls, from 1837 
 to 1840, inclusive. 
 
 Tolls of 1837 £5,521 4 4 Hydraulic Bentsi £697 14 10 £6,218 19 2 
 " 1838 6,723 4 11 " 330 12 11 7,053 17 10 
 
 " 1839 11,710 9 7 " 1,112 2 10 12,822 12 5 
 
 " 1840 19,129 12 2 •' 1,098 6 1 20,127 18 3 
 
 46,323 7 8 
 
 Srd. Expended under the Act of 1837, 7th William IV., from 
 1337 to 1843, - . - - - , - . . - 68,144 
 
 £22,243 16 4 
 
 554 7 9i 
 
 7.156 15 5 
 1,370 2 3 
 
 2$ 
 
 2.157 4 2 
 
 555 15 6 
 8,115 15 
 2,954 18 7 
 
 . , , PAr. -iciq 1 r rt 
 
 
 Total Expenditure to 1843, ... - £565,986 13 10 
 
 From the above data we have the following results: 
 1st. That no Work of equal magnitude in America, has been 
 constructed at less cost, or with more rigid economy. 
 
22 
 
 The Reports of the Directors, in 1829, after the two first ves- 
 sels had passed through from Lake to Lake, contains the fol- 
 lowing remark. "To show the Government and. the Stock- 
 holders that their money has been economically expended, the 
 following statement is presented: — 
 
 '■''Total Cost of the Welland Canal. 
 
 "Amount paid Contractors, on the Estimate of the Engineers, £243,000 
 
 " Awards and Real Estate, 4,853 
 
 " Duties to Government, and Interest to Bank U. C. 8,804 
 
 Thomas Proctor, Agent,. New York, 3,428 
 
 " Contingencies, including Salaries, &c. making near 
 
 five per cent, on the outlay, 12,710 
 
 Total, - - £272,795 
 
 To 1836— during a period of six years, £178,724 
 
 To 1842 — during the same period, 114,467 
 
 293,191 
 
 From 1824= — covering a period of nineteen years, - £565,986 
 
 2nd. The extent of the Works is thus described, in the Re- 
 port of 1835. 
 
 Length of Ship Canal from lakes Erie to Ontario, 28 miles. 
 
 From Port Robinson to mouth of river Welland, 9^ 
 
 From river Welland to Fort Erie, Ship Canal and Towing-path, 1 8 
 From Port Maitland to Dunnville, Harbor and Towing-path, 5 
 From Dunnville to Cayuga, 15 
 
 Boat Canal from Junction to Dunnville, 20f 
 
 106 
 Embracing in all, a Navigation of one hundred and six miles in 
 length, with an ascent of 358 feet, surmounted by forty wooden 
 Locks ; besides the erection of three Harbors — Ports Dalhousie, 
 Maitland, and Colborne — an Aqueduct over the river Welland, 
 365 feet in length and 24 feet in width, (the best wooden struc- 
 ture in America, designed and built by Marshal Lewis) — a Dam 
 and Embankment over the Grand river, near one mile in width, 
 and fifteen feet deep in the channel — and one and three-quarter 
 miles of the deepest cutting in America, averaging from thirty 
 to fifty-six feet — together with 13,400 acres of Land, in Wain- 
 fleet, — and innumerable situations for Hydrauhc Power — the 
 rents of which exceed £l,000 per annum." 
 
 3rrf. In .Appendix to Journals of the House of Assembly, (vol. 
 2, page 155, 31st January, 1839,) we find recorded an Estimate 
 of the progressive increase of the Income anticipated by the Di- 
 
rectors ; and by reference to Table No. 2, we find the actual 
 amount realized in those years, which presents the following 
 result. 
 
 In 1839, Estimate, £10,000 Amount received, £12,823 
 
 1840, " 12,500 " 20,228 
 
 1841, " 15,000 " 20,792 
 
 1842, " 18,000 " 24,976 
 The amount actually realized, having exceeded the Estimate, 
 
 in this short space of time, £23,319. The Directors remark: 
 "The estimated progressive increase of Income, is founded 
 upon the receipts of the Erie Canal ; and we can see no good 
 reason why the geographical position of this Canal should not 
 realize the same result." The monied value of the Income, in 
 1842, represented a capital of moi'e than £400,000. 
 
 This fact is alluded to merely to prove, that the private Share- 
 holders had no reason to dispose of their property at less than 
 its value — the full amount of principal and interest, which was 
 secured by the Act of 1837; and that it was richly worth all it 
 cost. 
 
 COST OF CANAL. 
 
 TABLE No. 2. 
 
 Statement of the several Amounts paid to the Welland Canal Company, 
 
 . by the Provincial Oovernment of U. Canada, under the 1th William, 
 
 IV., cap. 92, in 1837, which converted all Loans into Stock. 
 Act 7tli Geo. 4, cap. 20, in 1826, ■ - £25,000 
 
 8th " . 17, 1827, 50,000 
 
 nth " 11, 1830, - 25,000 
 
 1st William IV., 18, 1831, - 50,000 
 
 3rd " 64, 1833, 7,500 
 
 4th " 39, 1834, - 50,000 
 
 7th " 92, 1837, - - 68,144 £275,644 
 
 Amount of Debentures to private Shareholders, in 1843, 117,800 
 
 Am't for which the Province has issued Debentures, to date, *£393,444 
 
 * £172,542 less than its cost. (See Table No. 1.) 
 Statement of the several Legislative Grants, under the Board of Works, 
 
 from 1841 to 1851. 
 Act 4 and 5 Vic. cap. 28, in 1841, £500,000 
 
 . 9 
 
 it 
 
 63, 
 
 1846, 
 
 280,000 2»1 
 
 10 and 11 
 
 <( 
 
 34, 
 
 1847, 
 
 50,000 0.0 
 
 11 
 
 
 9, 
 
 1848, 
 1851, 
 
 68,155 9 5 
 
 97,017 £995,172 12 4 
 
 Total amount of the Provincial Debt incurred by the 
 
 construction of the Welland Canal, £1,388,616 12 4 
 
24 
 
 In the Public Accounts, there also appears to be deducted for 
 management and repairs : — 
 
 Am't bro't up, £40,574 6 3 
 
 In 1848, 15,132 16 3 
 
 1849, 6,249 13 11 
 
 1850, 7,011 17 8 
 
 1851, 11,000 
 
 In 1848, 
 
 £297 2 
 
 8 
 
 1844, 
 
 19,419 3 
 
 6 
 
 1845, 
 
 5,961 8 
 
 4 
 
 1846, 
 
 2,740 16 
 
 8 
 
 1847, 
 
 12,155 15 
 
 1 
 
 Am't carried up, £40,574 6 3 Making a total of £79,968 14 1 
 
 Which is not included in the appropriations, and forms no part 
 
 of the Public Debt. 
 
 TABLE No. 3. 
 
 Statement showing the amount expended hy the Board of Works, in each 
 year, (including £120,579 18«. %d. paid the private Shareholders,) up 
 to \st January, 1852, and the interest accruing thereon. 
 
 
 Amount 
 
 Amount on 
 
 Amount of 
 
 Amount 
 
 Interest 
 
 Total 
 Interest. 
 
 Year. 
 
 expended 
 
 which Interest 
 
 Interest at 
 
 paid to the 
 
 ate 
 
 
 each year. 
 
 was payable. 
 
 4 percent.* 
 
 Shareholders. 
 
 per cent. 
 
 1842 
 
 34,286 
 
 
 
 
 
 
 1843 
 
 141,393 
 
 176,219 
 
 1,393 
 
 7,235 
 
 
 8,628 
 
 1844 
 
 219,979 
 
 393,198 
 
 7,048 ' 
 
 7,235 
 
 
 14,283 
 
 1845 
 
 158,449 
 
 551,647 
 
 15,728 
 
 7,235 
 
 
 22,963 
 
 1846 
 
 102,146 
 
 653,792 
 
 20,000 
 
 7,235 
 
 3,098 
 
 30,333 
 
 1847 
 
 77,233 
 
 • 731,025 
 
 20,000 
 
 7,235 
 
 9,227 
 
 36,462 
 
 1848 
 
 76,774 
 
 807,799 
 
 20,000 
 
 7,235 
 
 13,861 
 
 41,096 
 
 1849 
 
 67,453 
 
 875,251 
 
 20,000 
 
 7,235 
 
 18,468 
 
 45,703 
 
 1850 
 
 69,225 
 
 934,478 
 
 20,000 
 
 7,235 
 
 22,515 
 
 49,750 
 
 1851 
 
 32,763 
 
 967,241 
 
 20,000 
 
 . 7,235 
 
 26,i070 
 
 53,305 
 
 Tot 
 
 1 ' 
 al amount of Interest paid, 
 
 - 
 
 £302,523 
 
 * 4 per cent, is estimated until it reached £500,000 — the appropriation under 4 and 
 5 Vic. being negotiated at that rate of interest — and 6 per cent, on all payments 
 thereafter. 
 
 TABLE No. 4, 
 
 Shows a statement of Tolls collected on the WeUand Canal from 1841 to 
 1851, both inclusive. 
 
 Year. 
 
 Gross Revenue. 
 
 1841 
 
 £20,792 3 11 
 
 1842 
 
 11,975 11 8 
 
 1843 
 
 16,159 6 
 
 1844 
 
 26,134 12 11 
 
 1845 
 
 19,886 10 5 
 
 1846 
 
 27,410 1 6 
 
 Carried forward,£l 35,378 6 5 
 
 Year. 
 
 Gross Revenue 
 
 Broughtforward£l35,378 6 5 
 
 1847 
 
 30,549 17 8 
 
 1848 
 
 29,064 7 3 
 
 1849 
 
 34,741 18 8 
 
 1850 
 
 37,925 17 7 
 
 1851 
 
 51,075 1 9 
 
 Total am't rec'd £318,714 17 8 
 
These Tables are designed to show the actual Expenditure 
 and Receipts in each year, that the difference between the 
 amount of Toll received, and the Interest paid, during that pe- 
 riod, may be ascertained. From which it will be found, that, 
 notwithstanding the great increase of the cost of the Canal over 
 all estimates, and the additional time occupied in finishing the 
 work, the income from 1841 to 1851 exceeds the expenditure, 
 £16,291. 
 
 No Interest is calculated on the £275,644 Stock held by the 
 Government, under the provisions of the 7th Wm. IV. 1837, nor 
 the deduction for management, dtc, under Table -2, from 18<t3 
 to 1851, amounting to £79,968, 'for the reasons assigned by the 
 Committee, in 1836. 
 
 FUTURE PROSPECTS. 
 
 TABLE No. 5. 
 
 Estimate of the Income and Expenditure of the 'Wetland Canal, from 
 
 1851 to 1860. 
 
 ESTIMATED INCOME. 
 
 For 1852, 
 
 £58,500 
 
 Brought forward, 
 
 £4«.5,635 
 
 185.3, 
 
 70,200 
 
 For 1857, 
 
 145,566 
 
 1854, 
 
 84,240 
 
 1858, 
 
 173,180 
 
 1855, 
 
 101,090 
 
 1859, 
 
 209,616 
 
 1856, 
 
 121,305 
 
 1860, 
 Gross Income for 
 nine years, 
 
 251,538 
 
 Carried forward, 
 
 £435,635 
 
 £1,215,235 
 
 Equal, for one year, to - - - - - 
 
 ESTIMATED EXPENDITURE. 
 
 £275,644, Amount of Government Stock, Table No. 2- 
 117,800 " Private Shareholders, " 4. 
 
 2,780 " in 1844, -* " 3. 
 
 172,486 " in 1852. 
 
 £135,026 
 
 £568,710 
 467,261 Surplus Expenditure over the Guarantee Loan. 
 
 £1,035,971 at 6 per cent, - £62,158 
 
 500,000 under the Guarantee Loan, at 4 per cent. 20,000 
 
 £1,535,971 
 
 Annual Management and Repairs, - 
 
 Leaving an average yearly gain (tf 
 
 6,000 
 
 £88,158 
 £46,868 
 
26 
 
 The calculations on the future prospects of Income, are based 
 on the same principle as the estimates of 1839, although more 
 clearly defined — the ratio of progress sustained on the Erie Ca- 
 nal, for fifteen years prior to 1849, — and on the Provincial 
 Works of Canada, for the five years they have been in opera- 
 tion, which is found to average 20 per cent, per annum. 
 
 In 1851, the tolls were estimated at £48,750, upon the assump- 
 tion that one-half of the Western trade between lake Erie and 
 the Atlantic, could be attracted through this Canal. (See Re- 
 port of Commissioner of Public Works, 1850.) This relative 
 pAportion of Trade has not been realised, although the income 
 has reached £51,146, making an increase of £13,531 over the 
 preceding year. From this data we may, with some confidence, 
 rely upon the estimates for the future keeping pace with the 
 past. The estimate of the cost of management jand repairs, is 
 from the returns of-Samuel Keefer, Esquire, Chief Engineer of 
 Public Works. — See Report for 1850, page 19. 
 
 The Guarantee Loan of 1841, was made by the Imperial Go- 
 vernment, for the express purpose of completing the Welland 
 and St. Lawrence Canals ; consequently, only four per cent, in- 
 terest should be charged on the amount of capital expended. 
 
 The revenue of this Canal has now reached so large an 
 amount, and has from year to year been so steadily increasing, 
 that the Income may be calculated with an approximation to 
 certainty. Any necessary amount of capital can, therefore, 
 be commanded, on the security of the work itself, in the monied 
 markets of Europe or America, and at the lowest rates of in- 
 terest, if the Government desire to negotiate a new loan. 
 
 The one million payable at six per cent, matures from 1846 
 to 1872, and offers a favol-able opportunity to negociate for a 
 reduced rate of interest. However, even if no such reduction is 
 made, the Canal will, in a few years, pay for itself. 
 
RECAPITTJLATION. 
 
 The preceding Narrative proves from official records, that at the com- 
 mencement of this undertaking, every inducement was held out to 
 foreign residents to become Shareholders — (see Act and Report of 
 1825i)— that the whole amount of capital was paid in, prior to 1829 — 
 that the hazard incurred from withholding the anticipated support, was 
 pointed out, in 1836 — that the justice and policy of paying the private 
 Shareholders the full amount of interest so soon as the Canal yielded a 
 sufficient revenue to meet the payment, , was fully acknowledged by the 
 Legislature, in that year, and secured by the Act of 1837 — (see 1839, 
 above,) — that in 1842 the revenue had increased to £24,976, showing 
 the Canal was really worth more than it cost — that in 1843 it was pur- 
 chased from the private Shareholders, by the public, at £172,542 less 
 than the amount expended upon it — (see Tables 1 and 2,) — in the same 
 year, the private Shareholders received Debentures, payable in 1863, 
 for the amount of their capital, under the provisions of the 2d clause 7th 
 Vict Cap. 34 — and in 1852, the tolls having realized the stipulated 
 amount, they received Debentures for the back interest, under the 6th 
 clause of the same act, from the time the capital was paid in up to 1843. 
 
 By this arrangement the Government has gained the difference be- 
 tween interest payable half yearly on the Debentures which should 
 have been issued in 1843, for the back interest then due, and the inte- 
 rest on Debentures now issued. In addition to which, they are pro- 
 vided with an ample fund from the Canal, to pay it. The private 
 Shareholders have been kept regularly advised of the progressive in- 
 come of the Canal, and, with few exceptions, the stock remains in the 
 hands of the original Stockholders. 
 
28 
 
 The Locks, Aqueduct, Culverts, and every other structure, have been 
 built of the most durable materials, and in the best manner. For a 
 minute description of its length and distances between leading points, 
 reference is made to the foregoing — under year 1837. 
 
 Its dimensions at present are, 45 feet in the bottom, 9 feet deep, with 
 a slope of 2 to 1, leaving a surface of 81 feet ; but it can be easily deep- 
 ened to ten feet, as that depth is provided for in the summit level. 
 
 The Locks Nos. 1 and 2, below St. Catharines, those at Port Col- 
 borne and Port Maitland, and the one erected this year, at Allanburgh, 
 are 45 feet wide'by 200 long, between the mitres. The remainder from 
 Thorold to St. Catharines, are 26-^ feet by 150. When the dimensions 
 of the principal Lock at Allanburgh are increased to correspond with the 
 Aqueduct, the largest Steamers now navigating the St. Lawrence may 
 approach to within four miles of each other, between the two Lakes. 
 There are 33 Locks in all, with Waste- weirs on each level. 
 
 The Aqueduct over the river Welland is 316 feet long, 45 feet wide, 
 and 10 feet 8 inches in depth, in order to serve either the Grand river or 
 the lake Erie level. 
 
 An additional Towing-path is about being made between Thorold and 
 St Catharines ; and it is contemplated lighting those Locks with Gas, 
 which will enable vessels to pass from lake to lake, in one day and night, 
 without a moment's interruption. 
 
 These trifling improvements, with a never-failing supply of water fur- 
 nished by lake Erie, will make this Canal stand unrivalled not only for 
 its utility, but for beauty and brilliancy. 
 
 It is truly a monument of which every Canadian may feel justly proud 
 
 — not for commemorating heroic deeds, or any particular victory or feat 
 
 at arms; but for commemorating the estabUshment of a fountain, from 
 
 which will flow never-failing sources of wealth for all time to come — for 
 
 which, be it remembered, we are indebted to the early enterprise of the 
 
 private Shareholders. 
 
 WM. HAMILTON MERRITT. 
 
 St. Catharines, 20th, Aitgust, 1852. 
 
APPENDIX, 
 
 [REPORT A.] 
 
 WELLAND CANAL COMPANY. 
 
 directors' report. 
 
 To His Excellency Sir P. Maitland, K. 0. B., Lieutenant Governor, Sc. 
 
 To the Honorable the Legislative Council, and to the House of Assembly 
 of the Province of Upper Canada — To the Proprietors of the Wel- 
 land Canal, and to the Public : 
 
 The Directors respectfully submit the following Report. 
 
 An act passed the Legislature of the Province of Upper Canada, in 
 February, 1024, incorporating a Company with a capital of £40,000, to 
 cut a Canal for Boat Navigation around the cataract of Niagara, and thus 
 to open a navigation from lake Ontario to lake Erie, by means, in part, 
 of the river Welland, which flows into the Niagara, above the Falls, and 
 from which the Company take its name,, being incorporated under the 
 style and title of the Welland Canal Company. 
 
 About £10,000, or one-fourth of the whole capital was immediately 
 subscribed, the Company was regularly organised, and the ■work com- 
 menced; but the Directors, upon a minute inspection of the uncommon 
 natural facilities which presented themselves on the line of the Canal, were 
 induced to postpone their operations, from the conviction that such a 
 vast object as that of connecting the upper with the lower basin of the 
 St. Lawrence, demanded a water communication of far greater dimen- 
 sions than the one contemplated, and capable of admitting all such ves- 
 sels as usually navigate the Lakes. On referring the plans and estimates 
 to the Stockholders, the conduct of the Direetors was highly approved ; 
 and it was determined to .petition the Legislature for an act authorising 
 them to increase their capital stock to £200,000 — a sum trifling as it ap- 
 pears to be, compared with the magnificence of the object to be attained, 
 yet quite sufficient to complete % canal capable of allowing vessels of 
 considera,ble burthen to pass from one lake into the other, thus opening a 
 continued internal navigation, without breaking bulk, of more than a 
 thousand miles. 
 
 The Legislature had only to revert to the peculiar position of the 
 coimtry, to be convinced of the immense advantage that must accrue to 
 the Canadas and to the British. Empire, from the completion of this mag- 
 
30 
 
 nificent undertaking, and therefore readily granted the prayer of the 
 petition, by passing an act, on the 13th of April, 1825, enabling the 
 Company to increase their Stock for the purposes therein mentioned, to 
 £200,000. 
 
 On the day subsequent to the passing of this act, the Directors as- 
 sembled, and being anxious to preserve the management of the Com- 
 pany under British influence, they determined to reserve a considera- 
 ble part of this incr.eased Stock, in order to be offered in the first in- 
 stance, to subscribers in England. Of the original Stock of £40,000, 
 more than one-half had been subscribed in New- York, and there was 
 httle doubt but that the whole capital required, might at once have been 
 obtained in that opulent and enterprising city : whereas, in Canada, the 
 want of capital in the country, precluded any prospect of obtaining sub- 
 scriptions to so large an amount. FeeUng the expediency of immedi- 
 ately obtaining means to proceed with the works which had already com- 
 menced, and at the same time being desirous that at least a majority of 
 the Stockholders should be British subjects, the Directors resolved to 
 limit the subscription in New- York to £75,000, which sum was imme- 
 diately taken up by the old Stockholders, to whom the option was first 
 given, so that at a public meeting which had been advertised for open- 
 ing books and receiving subscriptions, no subscription could be accepted ; 
 and such was the general opinion of the benefit promised, by the under- 
 taking, that more than the whole, capital would, at that meeting, have 
 readily been subscribed ; but the President of the Company, who was 
 present, refused to receive more than the £75,000. Of the remaining 
 Stock, £25,000 has been subscribed in the Canadas, and thus £100,000, 
 or one moiety of the whole, remains to be subscribed in London. 
 
 It ^yas deemed requisite that one of the Directors should proceed to 
 London, to afford such explanations and local information as might be 
 requisite to make the necessary arrangements for obtaining the required 
 subscriptions. . This mission was entrusted to Mr. Solicitor General 
 Boulton, late Vice-President of the Company, who resigned that office, 
 on his recent departure for England, and with whom Mr. McGilUvray, 
 another of the Directors, being about to return to England, is now asso- 
 ciated. The delay which has taken place in submitting the object of 
 their mission to the public, in the British metropoUs, has arisen from the 
 necessity of procuring correct maps of the country through which the 
 Canal is to pass, and proper sections, reports and estimates of the work 
 itself, for the information of those who might desire to become subscri- 
 bers. In the mean time, the Canal is rapidly advancing; for the Direc- 
 tors, under the impression that more Stock than they require, would 
 readily be taken in London, and assured at all events, it would be taken 
 in New- York, if an appeal to foreigners should become requisite, did not 
 think it necessary to delay entering into contracts till the subscription 
 was full. 
 
 In offering half the Stock of the Welland Canal to the Merchants and 
 Capitalists of the first commercial city in the world, the Directors act 
 
31 
 
 •with confidence upon two facts: first, that the other money has been 
 already taken up by the Merchants and Capitalists in New-York and the 
 Canadas, who are well acquainted with the country which this Canal is 
 intended to unite, and who, although in the habit of obtaining six per 
 cent, for their money, [the legal interest in these countries,] consider 
 this as a far more profitable method of employing their capital. The 
 second fact presents itself on reviewing the map of the country, by which 
 it will be seen, that the Canal must be the avenue of greater wealth and 
 commerce than any other now on the face of the earth. 
 
 In order to render this mighty undertaking famiUar to the British 
 public, the Directors beg to be indulged in giving a short review of the 
 causes which led to its commencement, and to the astonishing results 
 which must follow its completion. In March, 1807, the Senate of the 
 United States of America passed a resolution requiring the Secretary of 
 the Treasury, Mr. Gallatin, to report to them, at their next session, on 
 the subject of Eoads and Canals. In obedience to this order, the Secre- 
 tary delivered, on the 4th April, 1808, a most able State paper, in which 
 a general view is taken of the greater number of practicable Canals 
 which could be made with a^antage in any part of the Union, some 
 offering benefits which might well be deemed' National, others common 
 to several Provinces, and a few only of advantage to individual States, 
 but all tending directly to the augmentation of the power and wealth of 
 the Reffublic. Among other Canals, one for Sloop Navigation around the 
 Falls of Niagara was suggested, in order to unite lake Ontario with lakes 
 Erie, Michigan, Huron, and Superior. And to preserve the advantage 
 of being the carriers and exporters of their own produce, another Canal, 
 as a continuation of the line from lake Ontario to the Hudson, is also 
 proposed in the same elaborate document. , 
 
 It is quite evident that this able communication of Mr. Gallatin's, if it 
 has not suggested, has encouraged the dififerent States to undertake and 
 complete many Canals now in operation ; and among others, that stupen- 
 dous work of 365 miles long, which connects lake Erie with the tide 
 waters of the Hudson river ; for it follows the Une, or nearly so, which 
 Mr. Gallatin points out, till it reaches the place where it becomes neces- 
 sary to diverge either to lake Ontario or lake Erie. 
 
 The Secretary's Report was for several years considered speculative 
 and visionary ; and when the practicability of this magnificent canal was 
 first announced by some eminent and intelligent men of the State of 
 New- York, the most distinguished of whom was Governor Chnton, who 
 still lives to enjoy the fruits of his patriotic and persevering exertions, it 
 was treated wiih contempt and derision. It appeared to be a century 
 before the age ; and men incapable of enlarged views, while they were 
 forced to admit that it wafe splendid on paper, declared it itopracticable ; 
 that the resources of the whole Union were unequal to the expense ; 
 that, if made, it would be useless, and consequently, that the capital 
 would be sunky or ruinously unproductive. Even political animosity was 
 mingled in the contest; for the advocates of the project being friendly 
 
32 
 
 to moderation, they were stigmatised as men hunting for popularity, by 
 visionary schemes, -which must terminate in the ruin and degradation of 
 ihe State. 
 
 When, however, the reiterated explanations of the general utility of 
 Canals, and thp vast advantage which must accrue to New- York, by di- 
 recting to its market all the productions of the Western States, had made 
 an impression on the public mind, and began to dissipate the prejudices 
 of its opposers, the Legislature was induced to pass an act in 1811, to 
 provide for the improvement of the internal navigation of the State ; and 
 the Commissioners appointed under this law procured plans and sur- 
 veys of the proposed Canal, by which it appeared that the expense would 
 be much less than had been anticipated even by the most frugal calcu- 
 lators. This, perhaps, arose from the fact, that sources of expense which 
 in other countries are extremely heavy, here cost nothing,' viz : land for 
 the bed of the canal, and the water necessary for its supply. The land 
 was readily and joyfully given by the proprietors, and abundance of 
 water was found wherever it was wanted. These estimates, and the 
 facilities which the face of the country exhibited, opened the eyes of the 
 pubhc, and at length good sense triumphed over every opposition. 
 
 A water communication to join the Hudson with the Western Lakes, 
 was now so far from being considered impracticable, or attended with 
 ruinous expense, that it was deemed of easy accomplishment, and of too 
 much utiUty to be longer delayed. It nevertheless still appeared an un- 
 dertaking far too. great for a Company, or even a single State, and an 
 application was therefore made to the general Government, as well as to 
 those States which were more immediately interested in its accomplish- 
 ment, for pecuniary assistance. 
 
 No aid was given : Congress pronounced it a provincial, not a national 
 object, and the other States immediately interested, had either no avail- 
 able funds, or were not sufficiently convinced of the benefit to themselves 
 to justify any sacrifice. 
 
 The State»of New- York was, therefore, left entirely to its own resources. 
 But disappointment did not chill the ardor of the friends of the measure : 
 on the contrary, it increased their dihgence and zeal. Some delay, how- 
 ever, was produced, by a difference of opinion among intelligent men, 
 whether it would be more advantageous to carry the Canal at once from 
 the Hudson to lake Brie, or first to lake Ontario, and then to pass 
 around the Falls, as had been suggested by Mr. Gallatin. 
 
 Those who were for making use of lake Ontario as part of the line, 
 agreed that it was absurd to abandon the navigation of the most noble, 
 the most beautiful, and most commodious means, of internal communi- 
 cation ever presented in any part of the world. That to reject such a 
 gift, provided by the bounteous and ever prodigal hand of nature, with- 
 out any expense, and on a scale which human science and human labor, 
 or the treasures of a world are incompetent to rival, and to institute in 
 its stead, a narrow, winding, obstructed canal, would be an insult to 
 common sense, and would degrade the character of their rising nation : 
 
that a Canal around the Falls of Niagara ^ould be for a Ship Navigation, 
 since it was truly a National object, and ought to be executed on a scale 
 of unrivalled magnitude : that it "was a task which, if properly completed, 
 would be of equal duration with the world, and ought, therefore, to be 
 accomplished at any cost, and at any trouble, not grudging the most 
 liberal supplies, or neglecting to apply them with unremitting attention 
 and pcrseveT-ance till the object is attained. Such a Canal, said they, 
 has been estimated at £250,000, but it is more than probable it will 
 cost more than five times that sum ; and yet it will be cheap, for of its 
 vast productiveness there can be no doubt. Already the trade with the 
 Western States is great, notwithstanding the difficulties which it has to 
 encounter ; but the rapidity of its increase, from the growth of popula- 
 tion, when these difficulties are removed, it is not easy to conjecture. 
 Through this Canal must the whole commerce of the Western countries 
 for ever pass, whether destined to the St. Lawrence, or to the Hudson — 
 to New- York, or Montreal. 
 
 Once afloat on lake Ontario, a Canal around the rapids of Oswego, 
 will present a fair competition between both markets, and the commo- 
 dity will reach the one where its price is highest This alone is the in- 
 terest of the producer, and indirectly of the consumer ; and by such a 
 communication only can justice be done to the inhabitants of the United 
 States, living on the banks of the Canadian Lakes. To this it' was an- 
 swered, that to cut a Canal around the Falls of Niagara, in order to ad- 
 mit the productions of the Western States into lake Ontario, would be 
 to commit suj^ide, as it were, on the commerce of New- York. For once 
 afloat on the bosom of Ontario, every thing would proceed to Montreal, 
 where the best Market will generally be found. But were the Markets 
 equal, or even a little better at New-York than at Montreal, the commo- 
 dities passing' through the Canal would proceed to the latter, as they 
 would reach Prescott or Ogdensburgh, only 120 miles from the Cana- 
 dian Market, in the same vessel as they could the mouth of the Oswego, 
 where the proposed Canal from Ontario to the Hudson is to commence 
 — a point nearly 400 miles, or more than three times that distance, from 
 New-York. Moreover, produce can be conveyed from Prescott to Mont- 
 real in thirty hours, and from Oswego to New- York it must take at least 
 eight days. These arguments were decisive with the Merchants of New- 
 York, who were the principal supporters of the Canal, and who, as might 
 have been expected, were little disposed to hazard the loss of a trade so 
 lucrative and immense, by allowing it even a chance of passing through 
 another channel. It was, therefore, determined to extend the Canal at 
 once to lake Erie, so that after the productions of the vast countries west 
 of the Falls of Niagara would be once unloaded from the vessels on the 
 Lake into boats oh the Canal, there might be no danger of their being 
 diverted from the New-YoVk Market, by the temptation arising from the 
 greater facility of conveyance to Montreal 
 
 There were doubtless other considerations which had great weight 
 with the Legislature of the State of New- York, in persuading them to 
 
 E • 
 
34 
 
 adopt the present line of Canal, in preference to the Toute by lake Onta- 
 rio. The public mind was indeed too enlightened on the subject of Ca- 
 nals, to relinquish the one proposed between lake Erie and the tide 
 waters of the Hudson ; but assistance from other States and the Govern- 
 ment, had been asked and refused, and therefore the expense of the more 
 magnificent work appeared far beyond their abilities. Some were even 
 afraid that a Boat Canal through so vast an extent of country, would ex- 
 haust the revenues of the State ; and it was not without much appre- 
 hension that the attempt was made, on a very reduced scale of forty-five 
 feet wide at the top, with four feet water ; to extend from the Hudson 
 at Albany, to Bffialo and Black Keck, on lake Erie, a distance of 365 
 miles. 
 
 The commencement of this stupendous work excited the most earnest 
 attention of the inhabitants of Upper Canada. It was likely to deprive 
 them of the advantage of becoming the carriers of all the produce of all 
 the extensive countries belonging to the United States, west of the Falls 
 of Niagara, and to divert much of their own produce to New- York; and 
 although they beheld in the Canal a pledge of peaceable intention on the 
 part of the American people, and a relinquishment by, at least the State 
 of New- York, of any hope of ever conquering the Canadas ; and were 
 moreover filled with admiration at the magnitude of the work, it was 
 neverthfeless attended with feehngs of regret that the resources of the 
 Province were too feeble to enable them to improve their own greatly 
 superior natural advantages. 
 
 But in the state and with the prospects of the Colony, at that time ; 
 — recovering slowly and with difficulty from the cruel effects of an un- 
 natural and desolating war, in which the inhabitants had suffered most 
 severely, the produce of the soil remaining on the hands of the cultiva- 
 tor, without a Market, and the extension of commerce restricted by the 
 shackles of a Colonial system, the child of a darker age — it seemed hope- 
 less to attempt anj' competition with their powerful and enterprising, 
 neighbors. 
 
 So soon, however, as the more liberal policy of the enlightened States- 
 men who now direct His Majesty's councils began to be developed, and 
 a prospect was opened to the Colonies of a free commerce with ah na- 
 tions, and of receiving greater privileges and advantages in the ports of 
 the Parent State, as well as in those of each 'other, a new spirit was in- 
 fused into the Province, and enquiries were made to ascertain what natu- 
 ral facilities offered themselves for the improvement of Internal Naviga- 
 tion. Accordingly, in 1821, an act was passed by the Legislature, ap- 
 pointing a Board of Commissioners to report upon this interesting subject. 
 
 It is due to the memory of the late Mr. Nichol, formerly an active and 
 very intelligent member of the Legislature, to remark, that his zeal in 
 the cause of Public Improvement occasioned this measure to be brought 
 forward at an earUer period than it otherwise would have been ; and 
 that so long as he lived he persevered very faithfully in carrying it into 
 effect. 
 
The example of the State of New- York, vigorously engaged in com- 
 pleting an Inland Navigation from the Canadian Lakes to the Ocean — a 
 work which might have well been thought to exceed its power, directed 
 the attention of the Commissioners to the joining of lakes Erie and On- 
 tario, by a Sloop Navigation. This was not only the most obvious, but 
 the most important work which could engage their attention ; and ac- 
 cordingly a survey was made by an able Engineer, and estimates of the 
 probable expense carefully calculated. 
 
 Subsequent experience and examination have shown, that the route 
 chosen by the Commissioners, though possessing some peculiar advan- 
 tages, was too circuitous ; by which the expense was very much en- 
 hanced. The conception was indeed magnificent — the Canal was to 
 have seven feet water, and to admit all such vessels as usually navigated 
 the Lakes ; but the execution was far beyond the resources of the Pro- 
 vince ; and the ' Legislature was compelled, though not without reluc- 
 tance, to defer the undertaking till more propitious times, and the grow- 
 ing wealth of the Colony might justify its commencement. 
 
 This de}ay, instead of checking, increased the ardor for Internal Im- 
 "provement; even persons of moderate temperament were encouraged 
 by the success which attended the opening of every mile of the New- 
 York Canal. No sooner was one section finished, and the water intro- 
 duced, than the tolls did more than repay the interest of the capital ex- 
 pended; and in prosecuting flhe work, it was found that, contrary to 
 usual experience, the estimates of the Engineer almost always exceeded 
 the actual expense. 
 
 These matters of fact induced some active spirits who had a more im- 
 mediate interest in connecting the waters of lake Ontario and lake Erie, 
 to examine whether a more favorable line could not be discovered than 
 that which had been adopted by Colonel Nichol and the other Commis- 
 sioners. It had indeed been conjectured, that there were more conve- 
 nient routes for a Canal, and accordingly surveys were made at diflferent 
 points ; but owing to the ignorance of the persons employed, or the great- 
 ness of the expense attending a minute examination, they aU came to 
 nothing. 
 
 At length several enterprising gentlemen, living on the banks of a 
 small creek, which runs into lake Ontario, called the Twelve Mile Creek, 
 the source of which is very' near the deep river Welland, which commu- 
 nicates through the Niagara river, above the Falls, with lake Erie, were 
 induced to believe, from carefully observing the valley of the Greek and 
 its gentle declination towards lake Ontario, that it afforded singular faci- 
 lities for Canal navigation. One of these gentlemen, W. H. Merritt, Esq., 
 possessed of great zeal and energy, and to whose exertions in forwarding 
 the Canal, the Province will ever be indebted, entertaining this idea, ex- 
 amined the course of the Creek, and was so much encouraged with the 
 facilities it presented, that procuring the assistance of an experienced 
 Engineer, a line was surveyed, by which it was discovered that very 
 
36 
 
 little cutting would be necessary, and that the Locks could be placed in 
 a ravine of such gradual declivity, that they could be built at sufficient 
 distances from one another. 
 
 Pursuing with ardor his object, Mr. Merritt procured plans and sec- 
 tions, as well as estimates of the expense of completing a Canal for Boats, ^ 
 which hardly amounted to £40,000. Having proceeded so far, he very 
 naturally supposed that this sum was not too much to be assumed by a 
 private- Company, and many persons thinking well of the project, joined 
 him in petitioning the Legislature that they might be incorporated, with 
 a capital of £40,000, for the purpose of opening a Canal for Boat Navi- 
 gation, between lakes Erie and Ontario. On passing this law, in the 
 spring of 1824, a large portion of the capital was immediately subscribed, 
 and the work was actually begun ; but as we have already noticed, it 
 appearing upon a more minute examination of the route, to be uncom- 
 monly favorable, and capable, at little additional expense, in comparison 
 to the object, of admitting an excellent Sloop Navigation ; the Directors 
 thought it prudent to pause in their proceedings, and to petition the 
 Provincial Legislature to allow them to enlarge their capital to £200,- 
 000, in order to make the Canal capable of receiving such' vessels as 
 usually navigated the Lakes. 
 
 The proposed Canal, as appears from the Eeport and Drawings of the 
 Engineer, commences at the mouth of the Twelve Mile Creek, on lake 
 Ontario, and terminates at the mouth of the Grand river, or river Ouse, 
 on lake Erie — a distance of forty-one miles. It may be described, gene- 
 rally, as consisting oi three great sections: the first, of the length oi six- 
 teen miles, ascending from lake Ontario, passing through a ravine in the 
 mountain ridge, and entering the ijver Well and, through a deep clay 
 bank which divides it from the mountain ridge, and in which, for a dis- 
 tance of one and three quarter miles, the Canal is to be cut from thirty 
 to fifty-four feet six inches, which is the gTcatest depth at any one point. 
 This deep cut is already under contract, and it is ascertained that the 
 bank consists wholly of clay. It is also a peculiar advantage possessed 
 by this line, that in passing through the mountain ridge, and in a consi- 
 derable part of the descent from thence into lake Ontario, the Canal fol- 
 lows the direction of the natural ravines, where no excavation will be re- 
 quired, and where it will only be requisite to form embankments in which 
 to construct the Locks, whilst the width of the ravine is such as to form 
 ample reservoirs ; and the slope is so easy and regular, that one of these 
 reservoirs will, in almost every instance, be interposed between each two 
 Locks, throughout the descent, and the sloping banks of these ravines,, 
 and the abundant and inexhaustible supply of water, afford an almost 
 unlimited power for Hydraulic machinery, which it is intended to connect 
 with the falls at the different Locks, and which, it is hoped, will soon 
 afford a considerable revenue to the proprietors of the Canal. The 
 difference of level from lake Ontario to the river Welland, is about three 
 hundred and thirteen feet, requiring about thirty-five Locks, — and this is 
 the first section to be completed. 
 
The second great section of the Canal consists of the river Welland 
 itself, which, for a distance of nearly thirty miles, resembles a Canal more 
 than a running stream, having scarcely a perceptible current, and bein^- 
 from twelve to thirty feet deep, so that it will only be requisite to construct 
 a towing path along its bank. The Canal opens into the Welland about 
 eight miles above its entrance into the Niagara river, at the vUlage of 
 Chippawa; and by that route, on constructing a towing path from the 
 opening of the Canal to the mouth of the Welland, an Inland Navigation 
 around the cataract of Niagara, is in fact accomplished ; because, from the 
 mouth of the Welland vessels can sail up the Niagara river into lake 
 Erie; but below Fort Erie there is a strong current in the river, and be- 
 sides avoiding this impediment to the navigation, in case of vessels as- 
 cending, there are other important advantages which will be attained by 
 the intended opening of the Canal into lake Erie through the Grand 
 river. Therefore, in addition to the towing path from the Canal to 
 the mouth of the Welland, there is another towing path to be con- 
 structed, ascending the course of the river for a distance of eleven 
 miles — which may be described as constituting the second great section 
 of the Canal. 
 
 The third great section is a cut of about twelve miles, from the Wel- 
 land to the Grand river, through a flat, swampy tract of country, called 
 the Canborough or Wainfleet marsh — the surface of which is about eight 
 feet higher than the level of lake Erie. It was at first proposed to cut 
 the Canal on a level with the surface of this tract of country, and to sup- 
 ply it with water from a feeder from the Grand river above the rapids ; 
 but the present and the more improved plan is, to cut an excavation 
 through the Canborough Marsh to the depth of sixteen feet, which will 
 render lake Erie at once the summit level, and the feeder of the Welland 
 Canal throughout its whole extent. , 
 
 At the mouth of the Grand river there is a Harbor to be construct- 
 ed; and it will thus be seen that the Canal has two outlets for vessels 
 ascending from lake Ontario; one through the Niagara river into the 
 eastern extreriiity of lake Erie, and opposite to the entrance of the Ame- 
 rican grand Erie Canal; and (mother through the Grand river into lake 
 Erie, at a distance of forty miles nearer to the central and western shores 
 of the Lake ; besides, with such reduction of distance in Lake sailing, the 
 route by the Grand river offers other important advantages to vessels 
 from the upper parts' of lake Erie. From the Grand river to Fort Erie, 
 the navigation on lake Erie is dangerous, and at Fort Erie there is no 
 good Harbor ; nor is it ascertained if the new American Harbors at Buf- 
 falo and Black Rock will resist the severe gales of wind which are fre- 
 quent in the fall of the year, and the heavy surf which rolls on the bpach 
 at that end of the Lake, where the coast is much more exposed to its 
 violence than at the mouth of the Grand river. The prevailing winds on 
 the Lakes are from the westward ; and by a glance at the map it wiE at 
 once be seen, that a gale of win.d, from that quarter sets on the beach at 
 BuSulo, with an uninterrupted sweep of above two hundred miles: 
 
38 
 
 whereas, the mouth of the Grand river, partially protected by head 
 lands on each side of its own bay, is further sheltered from the gales of 
 Kvind, by Long Point, which projects nearly thirty miles into the Lake. 
 
 Another circumstance is to be noticed, peculiarly advantageous to the 
 Canal entering at the mouth of the Grand river, and which arises from 
 the form of lake Erie, the prevalence of westerly winds, and the gi-adual 
 though scarcely perceptible flow of the current towards the outlet of the 
 Lake into the Niagara river, where the current being at length contract- 
 ed as into a funnel, an accumulation of ice from the Lake regularly takes 
 place every spring, and effectually blocks -up the channel ; thus forming 
 a barrier which prevents the opening of the navigation at Buffalo and 
 Fort Erie, for a certain time after the ice has disappeared in the rest of 
 the Lake, and after the opening of the Grand river — which, as it flows 
 into the Lake without obstruction, carries away the ice before it, with 
 the first freshet in the spring. This difference of time betwixt the open- 
 ing of the navigation of the Grand river and river Niagara, has seldom 
 been less than three weeks, and in some seasons has been five weeks ; 
 but estimating it at a shortej- period, it gives to the Welland Canal the 
 advantage of being open before the American Canal, for three weeks of 
 the most important part of each season. 
 
 These general inductions are deemed sufficient for this place : the de- 
 tails and estimates are in the hands of the Directors, who will most 
 cheerfully submit them to the inspection of any person who may be dis- 
 posed to examine them : they have been dr'awn up and calculated by 
 an Engineer of great intelligence and professional knowledge, on whose 
 accuracy the Directors, from long experience, have the most perfect re- 
 liance. From the whole it is seen at how little expense the Canal may 
 be constructed, and how much the bounty of nature assists in its form- 
 ation. 
 
 It was happy for Upper Canada that the Canal undertaken in the 
 State of New- York, and now almost completed, is on a scale so very 
 small, and is nevertheless attended with immense profit ; for this ex- 
 ample encouraged the Colonists to attempt what, perhaps, they never 
 would have dared even to imagine — a Canal of similar dimensions. This 
 attempt led to a minute examination of the route — the facilities of which 
 appeared so great that their views gradually expanded, and they began 
 to consider a Canal on a far greater scale as possible, and not greatly 
 beyond their resources. The more they examined the country through 
 which it must pass, the more easy of accomplishment did it appear ; and 
 from considering it possible, they began to think it advisable, and even to 
 despise the more humble attempt they had formerly conceived. It was, 
 therefore, equally fortunate that a Canal of similar dimensions with that 
 of our neighbors was at first proposed, and that it has been enlarged 
 from a conviction arising from the existence of local advantages which 
 will render it infinitely more profitable, convenient and important. Such 
 are the causes that led to the project uqw going forward, of uniting the 
 great Lakes of Canada by a Sloop Navigation. 
 
In touching upon the mighty results which miist attend or soon fol- 
 low the completion of the Welland Canal, the truth will assume the ap- 
 pearance of the most extravagant exaggeration to those who do not make 
 themselves acquainted with the singular Geography of North America. 
 We, therefore, desire ^all those who are astonished at our remarks, and 
 feel inclined to pronounce them erroneous, to take this preliminary step, 
 by placing a Map before them, and estimating the wonderful water ca- 
 pabilities which present themselves, and the immense countries which 
 can approach the Sea only by the St. Lawrence. Moreover, to judge 
 correctly, those conversant with the largest and most productive of Eu- 
 ropean Canals must divest themselves of prejudices in their favor, and 
 only take into account the facilities of communication which they offer, 
 when compared to those which will be opened by the "Welland Canal. 
 
 Darby, one of the most iaithfiil of Geographers, who never published 
 a Map till he had traversed on foot the country which it represents, esti- 
 mates the valley of the St. Lawrence, above the Falls of Niagara, exclu- 
 sive of the Lakes, at 186,700 square miles; to which we may add the 
 valley of the Ohio, containing 226,000 square miles, when the Canal now 
 cutting between that river and lake Erie shall be finished. Thus the 
 commercial intercourse between the Sea and upwards of 400,000 
 square miles of fertile land, must pass through the Welland Canal, or 
 the smaller one belonging to the State of New- York. When this fact 
 is considered, the first idea that strikes us, is the impossibility that the 
 produce of countries so vastly extensive can pass through these two Ca- 
 nals, and the necessity that soon must arise for opening other communi- 
 cations to meet the increase of commerce : but as no other can be made 
 with any prospect of success, except by the straits *of Niagara, the Wel- 
 land Canal need fear no competition. 
 
 The reader will have a more distinct conception of the magnitude of 
 the intercourse that must soon be carried on through these two Canals, 
 by supposing Great Britain, Spain, France and Germany to be so situa- 
 ted that all their intercourse with other nations inust come through one 
 narrow valley, admitting only two or three convenient Roads or Canals 
 — such a supposition gives a vivid image of what must be the case at 
 the straits which divide lake Eriefrom lake Ontario, and will enable us 
 to form some estimate of the ships and boats that must pass through 
 these Canals, bearing the riches of the Western World to the Atlantic 
 Ocean. Nor are these countries in a state of nature, and without inha- 
 bitants ; they are indeed thinly peopled, in proportion to their extent ; 
 but nearly three millions are scattered over them ; and from the known 
 rapidity of the increase of population in new countries, the period is at 
 hand when the quantities of produce will be so great as to compfel an 
 enlargement of the present dimensions of the Canal, great and magni- 
 ficent as they are. 
 
 It has been found from experience, that when Agricultural produce 
 has to be carted 130 miles,Jt ceases to be worth raising, as the expense 
 of bringing it (a barrel of flour for example,) so far, added to that of 
 
40 
 
 raising it, exceeds or equals what can be obtained for it in the Market ; 
 hence, at this distance, a check is put upon Agriculture, and the im- 
 provement of any country. It has also been found, that water commu- 
 nication, such as that which the Welland Canal opens, is to land carriage 
 as 1 to 25 ; consequently, commodities can be cojiveyed by Canal and 
 Lake Nayigation 3,250 miles, as cheaply as one hundred and thirty by 
 cartage. But as 130 miles of land carriage ceases to be profitable, let 
 us take the hmit of 100 miles, at which a positive advantage accrues; 
 and then a. ton will be carried by water, 2,500 miles at the same rate as 
 you can wagon it 100 miles. In applying these facts, deduced f);om ex- 
 •perience, to North America, we see the certainty of improving countries, 
 which, but for this, must for ever have remained in a state of nature, 
 totally inaccessible to civilized man ; and discover grounds for believing 
 that all the productions of the upper valley of the Mississippi, the set- 
 tlement of which is now commencing, will be conveyed to the Ocean by 
 the Welland Canal — thus opening a farther extent of country of 225,- 
 000 square miles. Indeed, the communication between the Canadian 
 Seas and the river Mississippi, is now practicable at high water. In the 
 Spring, loaded boats of a considerable size, pass from lake Michigan into 
 the Illinois river, which falls into the Mississippi ; and from lake Michi- 
 gan by the Miami river into the Wabash — a tributary stream of the Mis- 
 sissippi ; but it would engage us too much in detail to point out the ex- 
 traordinary facilities which a bountiful Creator has afforded, for opening- 
 water communications between the different parts of this vast continent: 
 it is presumed that enough has been stated, to show the great quantities 
 of produce which, of necessity, must pass thro' the Welland Canal, and it is 
 easy to infer the consequent profits that must accrue to the proprietors. 
 
 As the Welland Canal and that which passes through the State of 
 New- York, from lake Erie to the tide-waters of the Hudson, are in some 
 degree rivals, it may not be out of place to state the superior advantages 
 of the former; but in doing this, the Directors disclaim all wish or in- 
 tention of disparaging the mighty work of their neighbors ; for to its as- 
 ■ tonishing success they are indebted for the commencement of their own. 
 They confine themselves to matter of fact, and to the fair exposition of 
 such matters as are necessary to enable those whose assistance they are 
 soliciting, to form a correct judgment on the subject 
 
 1st, The Welland Canal, passing on the diameter of an ellipsis fortj'- 
 one miles long, unites both Lakes at little more than half the length 
 of the present communication by Buffalo and the Falls of Niagara. 
 
 2nd. Ships passing the Grand river where the Welland Catial begins, 
 have to sail down lake Erie about forty miles to the mouth of the New- 
 York Canal, and here they are nearly as far from lake Ontario as if they 
 were at the entrance of the Welland Canal. 
 
 3rd. The Welland Canal, as has been already noticed, has two out- 
 lets : vessels may pass from lake Ontario by the Grand river into the 
 broadest parts of lake Erie ; or they may proceed down the Welland 
 into Niagara river, and thence up to Buffalo and lake Erie. 
 
4th. Vessels have access three or four weeks sooner every year to 
 the mouth of the Welland Canal, on lake Erie, than to that of the New- 
 York Canal, at Black Rock ; add to this, that vessels are often detained 
 many days in the narrows, between Black Eock and Point Abino, a dis- 
 tance of nine miles ; but vessels passing through the Welland Canal, get 
 at once into the broad Lakej and therefore make good their passage. , 
 
 5th. The New- York Caijal commences about 500 miles from the 
 Sea, of which 365 miles is a Boat Navigation — at the end of which you 
 are farther from the market of New- York than you are from Montreal, 
 at the extremity of the Ship Navigation opened by the Welland Canal. 
 
 6th. The Welland Canal will bring all the commodities of the West- 
 ern countries, without breaking bulk, within 120 miles of Montreal, and 
 the distance may be passed in less than two days by large boats, on ac- 
 count of the rapidity of the stream ; and it will probably, in a few years, 
 be rendered capable of Steam Navigation. 
 
 'Jth. The Welland Canal opens an uninterrupted navigation from 
 Prescott and Ogdensburg, on the river St. Lawrence, for all craft used 
 in navigating the Canadian Seas, to the Western shores of lakes Huron 
 and Michigan, and by removing a trifling obstruction, to the head of 
 lake Superior — a distance of more than twelve hundred miles, or up- 
 wards of 3,000 miles of coast. 
 
 The late Mr. Fulton, justly celebrated for applying steam with efifeot, 
 to the purposes of navigation, calculated that one millioq of tons would 
 pass the Canal, from Buffalo to the tide waters of the Hudson, in a very 
 few years after its completion, (and ten times that quantity in a short 
 period,) which, at one-hundredth part of a dollar per mile, taking the 
 lengtlj of the Canal at 350 rniles, to avoid broken numbers, will yield a 
 revenue to the State of three and a half million of dollars per annum. 
 This he reckoned as trifling, to the revenue arising from the Canal when 
 the vast regions west of the cataract of Niagara, become full of inhabi- 
 tants. Supposing an equal quantity, or one million ,of tons, to pass 
 through the Welland Canal at the same time — ^it would give four hun- 
 dred and ten thousand dollars per annum, or more than fifty per cent. 
 on the original expense. Suppose only one-half this quantity to pass, or 
 that the one million of tons is equally divided between the two Canals, 
 we have still $205,000 per annum, or rather more than 25 per cent, on 
 the capital expended. 
 
 If it be said that the State of New- York may remit or greatly lessen 
 the Toll : we answer, that the cost of keeping so long a line of Canal in 
 good repair, is very great, and will never admit of a total relinquishment 
 of duty ; but if it were entirely done away, it can be easily aemonstrated, 
 that commodities entering the Welland Canal, can be conveyed at less 
 expense to Montreal and Quebec than the same can be carried for to 
 New- York, were the whole toll remitted. 
 
 Hence it may be reasonably expected, that this magnificent work will, 
 as a lucrative speculation for the Company, (that is, when accomplished,) 
 be far superior in its advantages to any similar undertaking yet attempt- 
 
 F 
 
42 
 
 ed in any part of the world : and it is, therefore, confidently offered and 
 recommended to the attention of the public, both in Great Britain and 
 in the Canadas, as a project combining the prospect of great success to 
 the Stockholders, with that of the most important benefits to the public : 
 it will tend to draw forth the latent resources of this rising Colony ; 
 brjng to our ports a portion of the riches of the more fertile half of the 
 United States ; and while it must produce immense profit to the Com- 
 pany, it is an object honorable to those by whom it is to be accomplished, 
 and a noble example of enterprise to our more wealthy and more popu- 
 lous sister Colonies. 
 
 But in addition to pecuniary advantages to the Company, commercial 
 advantages to the Province, and honorable distinction to those under 
 whose auspices and by whose means this important undertaking is to be 
 accomplished, it is a public measure connected with even higher consi- 
 derations. Improvements suggest and assist each other, and tend to the 
 nourishment and development of that vivifying principle which exalts 
 one nation above another, and which connects the distant branches of 
 one parent stem to each other, by the ties of common origin, of mutual 
 attachment, and of reciprocal advantage : that principle which has en- 
 abled Great Britain to maintain the character of bping at the same time 
 the first nation in war, the first in manufactures, the first in public im- 
 provement: that principle which enabled the small and scattered popu- 
 lation of this young Province successfully to resist the repeated inroads 
 of their powerful invaders, in war, and which, it is hoped, may, in peace, 
 enable them to follow the great example of the Mother Country, in the 
 career of improvement, and like her, derive wealth and power from the 
 honorable exertion of individual enterprise. 
 
 In the progress of improvements, and amongst those public works 
 which bestow wealth and power on nations, and which confer permanent 
 distinction on individuals, there are none of equal importance or celebrity 
 with the construction of Canals. The conquests of Louis XIV. are for- 
 gotten, or remembered only to be held up to execration ; but the Canal 
 of Languedoc remains a blessing to France, and to Ms name a monu- 
 ment of imperishable renown. The Duke of Bridgewater's rank and 
 wealth would not have preserved his name from oblivion ; but he will 
 always be remembered, as the man who embarked his fortune in con- 
 structing the first Canal in Great Britain, regardless alike of popular 
 prejudices, of friendly remonstrances, and of prophetic threats of ruin. 
 And in our times, and in our immediate neighborhood, it is probable 
 that the name of Dewitt Clinton will always remain associated with the 
 grand Erie Canal of the State of New-York, when the names and the 
 measures of other contemporary Chief Magistrates of States and of Na- 
 tions, will be consigned to the same forgetfulness which has already 
 swallowed up so many of their predecessors. 
 
 The Directors of the Welland Canal Company profess not to be in- 
 sensible to the honor conferred upon them, in being chosen to begin so 
 noble a work as a Canal for Ship Navigation around the Cataract of Ni- 
 
agara; and as their services are gratuitous, the honor of conducting the 
 undertaking is their only reward. It is one of those rare measures which, 
 though of immense magnitude, is of comparatively easy and absolutely 
 certain accomplishment. The natural advantages of the ground, com- 
 bined with the inexhaustible supply of water, are such as no other Ca- 
 nal ever had, and such as can be found for no other Canal ; and when 
 finished on the intended scale, it will be one of the grandest works ever 
 effected by any country or by any nation. No work in Europe, or in 
 Asia, ancient or modern, will bear a comparison with it, in usefulness, to 
 an equal extent of territory: and it will yield only to the Canal which 
 may hereafter unite the Pacific with the Atlantic Ocean, through the 
 Isthmus of Darien. 
 
 But each undertaking has its own peculiar advantages, and the Wel- 
 land Canal will possess some advantages even over the projected Canal 
 of Darien. The Pacific is already accessible by navigation around the 
 Cape of Good Hope, or Cape Horn; but the interior Seas of North 
 America, which contain more than half of the fresh water in this Planet, 
 and the fertile and extensive shores of which are destined to be peopled 
 by an active, an intelligent, and an enterprising race — boasting their de- 
 scent from England, and preserving and perpetuating her language and 
 her institutions — these interior Seas can be approached in Ships only 
 through the Welland Canal. 
 
 Such is the importance, and such will be the splendid and- immense 
 results, of the work now offered to the notice of those enterprising and 
 enlightened capitalists who may be disposed to contribute to its copiple- 
 tion ; at the same time that they secure for themselves a participation 
 in its advantages, and a share of the liberal profits which it may reason- 
 ably and speedily be expected to produce. 
 
 Report of the Directors of the WeUand Canal Company. 
 To Sir Francis Bond Head, Baronet, C. li. lAeut. Governor, &c. &c. dc. 
 
 The Directors of the Welland Canal Company have the honor to for- 
 ward herewith, their Balance Sheet for the year 1837, and Docu- 
 rnents explanatory thereof, numbered 1 to 8, together with certain other 
 papers, A. to G., and to Eeport that, 
 
 In consequence of the effective condition in which the works of the 
 Canal had been placed, by the former Board of Directors, no interrup- 
 tion to its navigation has occurred during the past season. 
 
 Although the amount of Tolls collected has fallen short of the two 
 preceding years, [D.] the tonnage has greatly increased, [B.] compared 
 with the year 1836. An increase is observable on Lumber, Pork, Salt, 
 Fish, Wheat, Corn, Barley, Rye, and Coals — a decrease on Bricks, Flour, 
 Flax-seed,. Fruit, Merchandize, Gypsum, and Tobacco. 
 
44 
 
 The decrease on Merchandize has been above £1,000 : whence it may- 
 be presumed, that, had no peculiar commercial difficulties existed, the 
 Tolls of the past would hare exceeded those of any preceding year. 
 
 From the statements of E. and F. it will be perceived, that the ave- 
 rage annual cost of Administration, is - £3,085 12 6 
 The average annual cost of Kepairs and Improvements, 13,985 7 6 
 The annual Interest on £66,144 8s. lOd. [A.] - 3,968 8 9 
 
 £21,039 8 9 
 Deduct the average amount of Tolls, £4,999 6 6) „ qqq a « 
 Eents. ( - : - 2,000 f "'^^^ ^ ^ 
 
 Average annual loss, . ' - £14,040 2 3 
 
 It appears, then, that the Canal can only be maintained in its present 
 condition, at an average annual loss of £14,000. 
 
 The Eeport of the Engineers employed, as directed by the 'Zth Wm. 
 IV. chap. 92, not yet having been received, the result of the permanent 
 construction of the Canal, as regards its Finances, cannot be positively 
 stated; but it may not unreasonably be assumed, that such permanent 
 construction will insure an increased Trade, with a comparatively small 
 annual expenditure for repairs. It does not, however, ensue, that the 
 loss to the public will, therefore, be less ; because the interest on the 
 sum which may yet be required to complete the Canal in a permanent 
 manner, together with the cost of Repairs, may, and probably will, ex- 
 ceed £14,000. 
 
 There have already been £329,200 of public money expended on the 
 Canal — for a large portion of which, interest is now paid by the Receiver " 
 General. 
 
 The private Stockholders have not received any interest, for their 
 money, amounting to £117,800. 
 
 When this enormous expenditure is considered, in connexion with the 
 very small advantage derived by the Province therefrom, it may well be 
 questioned whether it will be more wise to let the Canal go to decay, 
 usin'g it only as a source of water power for driving Mill-machinery, or 
 to embark in expenses, the result of which may be ultimately beneficial, 
 but which, in the mean time, must involve us in Financial difficulties of 
 the gTavest kind. By order of the Board, 
 
 J. S. MACAULAY, President, W. C. C. 
 Wklland Canal Office, ) 
 
 St. Catharines, 12th February, 1838. J 
 
[C] 
 
 An Act to Repeal a certain Act therein mentioned, and to make further 
 provision for enabling the Provincial Oovernmeni to purchase the 
 Stock held by private parties in the Wetland Canal. 
 
 [9th December, 1843.] 
 
 Whereas, in and by a certain act of the Parliament of this Province, 
 passed in the fourth and fifth years of the reign of her present Majesty, 
 intituled "An Ac^to authorize the Stock held by private parties in the 
 Welland Canal to be purchased on behalf of the Province," after reci- 
 ting that it viras desirable to place the Welland Canal under the exclu- 
 sive control of the Government of this Province, and for that purpose to 
 provide for the purchase from the private Stockholders in that work, of 
 the stock by them held, and which amounted to the sum of one hundred 
 and seventeen thousand eight hundred pounds, it was, amongst other 
 things, enacted, that it should and ought to be lawful for her Majesty's 
 Receiver General, upon an order to that effect from the Governor, Lieu- 
 tenant Governor, or person administering the Government of this Pro- 
 vince,, to issue such number of Debentures as might be required, to the 
 several Stockholders in the Welland Canal, for a sum equal to the 
 amount of Stock held by him or them ; and that such Debentures should 
 be made redeemable in twenty years from their date, and should bear 
 an interest of two per cent, per annum, on the amount for which they 
 might be issued, for the first two years, three per cent, for the third 
 year, four per cent, for the fourth year, five per cent, for the fifth year, 
 and six per cent, for the sixth and following years — ^whioh interest and 
 principal sum should be chargeable on and payable out of the public 
 revenues of the Province : And that whenever the tolls collected on the 
 said Canal, should annually amount to the sum of thirty thousand pounds, 
 it should be lawful for the Governor, Lieutenant Governor, or person 
 administering the Government, to authorize and direct the Receiver Ge- 
 neral of this Province to issue other Debentures to the original Stock- 
 holders, or their legal representatives, for such sums as would make up 
 six per centum interest upon the amount of Stock by them subscribed 
 and paid for, from the time the same should have been actually paid — 
 which Debentures were to be made payable in twenty years from the 
 date thereof, and were to bear interest at the rate of six per centum per 
 annum, payable half yearly, out of the public revenues of this Province 
 — and that nothing in the said act contained should be construed to com- 
 
46 
 
 pel any Stockholder to accept Debentures for the Stock held by him as 
 aforesaid, or in case of refusal to receive the same, to deprive him from 
 being paid from the Tolls and revenues of the Canal, according to the 
 laws then existing having relation to the said Canal: 
 
 And whereas, by a certain act of the Parliament of Upper Canada, 
 passed in the seventh year of the reign of His late Majesty King William 
 the Fourth, intituled -'An Act to provide for the permanent completion 
 of the Welland Canal, and for other purposes therein mentioned," provi- 
 sion is made for raising, by way of public Loan, the sum of two hundred 
 and forty-five thousand pounds, for the purposes of the said act; and that" 
 the Tolls received upon the said Canal, after deducting the amount re- 
 quired for the charges then made thereon, by law, for so much thereof 
 as might be necessary, should, in the first place, be applied to discharge 
 the interest which should accrue upon the said sum of two hundred and 
 forty-five thousand pounds, and the remainder of the income received by 
 the said Company should be divided among the private Stockholders, 
 until it should equal six per cent, on the amount of jth^ir investments : 
 And whereas, by reason of difficulties arising from the state of the Pro- 
 vincial Finances of Upper Canada aforesaid, a small part only of the said 
 sum of two hundred and forty-five thousand pounds was actually raised, 
 and the Canal was, therefore, not completed by means of the said Loan : 
 And whereas, the said Canal is in progress oi completion, by means of 
 other and larger sums of money received for that purpose, than the sum 
 pi'ovided to be raised under the said act : And whereas, therefore, the 
 circumstances contemplated by the said act under which the said pri- 
 vate Stockholders were to have received dividends from the income of 
 the said Canal, have not arisen, and cannot now arise ; and it is, there- 
 fore, expedient to repeal the said provision for the payment of such divi- 
 dends : And whereas, it is represented to be for the interest of the pri- 
 vate Stockholders aforesaid, that the said first in part recited act should 
 be repealed, and other provisions enacted in lieu thereof : 
 
 Be it, therefore, enacted, by the Queen's most excellent Majesty, by 
 and with the advice and consent of the Legislative Council- and of the 
 Legislative Assembly of the Province of Canada, constituted and assem- 
 bled by virtue of and under the authority of an act passed in the Parlia- 
 ment of the United Kingdom of Great Britain and Ireland, intituled 
 "An Act to re-unite the Provinces of Upper and Lower Canada, and for 
 the Government of Canada," and it is hereby enacted by the authority 
 of the same, — That the said first in part recited act, and the said act of 
 the Parliament of Upper Canada, in so far as the same relates to the 
 division of the income of the said Canal, or any part thereof, amongst 
 the private Stockholders, shall be and the same are hereby repealed, ex- 
 cept in so far as the same repeal any former act or acts of the Parlia- 
 ment of Upper Canada, or of this Province. 
 
 IL And be it enacted, That there shall be charged upon the Consoli- 
 dated Revenue Fund of this Province, for the benefit of the private 
 Stockholders in the said Welland Canal, the sum of one hundred and 
 
seventeen thousand eight hundred pounds, currency of this Province, 
 with interest thereon, from the first day of January, in the year of our 
 Lord one thousand eight hundred and forty-three. 
 
 III. And be it enacted, That it shall and may be lawful for the Go- 
 vernor of this Province, in Council, to direct the Receiver General of 
 this Province to issue such number of Debentures as may be required, 
 to the private Stockholders in the Welland Canal Company, not exceed- 
 ing the said sum of one hundred and seventeen thousand eight hundred 
 pounds, currency, at a rate of interest not exceeding five per cent, per 
 annum, if the said Debentures and interest shall be payable in England, 
 or not exceeding six per centum per annum, if the said Debentures and 
 interest shall be payable in Canada; and that the Debentures, or other 
 Securities to be issued, shall bear date the first day of January, in the 
 year of our Lord one thousand eight hundred and forty-three, and the 
 interest thereon shall be payable from thqnce, on the first day of Janu- 
 ary next succeeding the issue thereof; and from thence half yearly, on 
 the first day of July and the first day of January in each year, until the 
 principal sum shall be paid ; and such principal sum shall be made pay- 
 able in twenty years from the date of the said Debentures. 
 
 IV. And be it enacted, That it shall and may be lawful for the Go- 
 vernor of this Province, in Council, to direct the issue of the said Deben- 
 tures to the 'private Stockholders, according to their respective claims ; 
 and such Debentures shall bear the rates of interest abov« mentioned, 
 and shall be payable either in London or in this Province, as such pri- 
 vate Stockholders shall respectively desire, and at such place therein, as 
 the Governor and Council shall direct and appoint: Provided always,iha.i 
 nothing in this act contained, shall be held to invalidate or make void any 
 Debentures heretofore issued, under the said first, in part, recited act. 
 
 V. And be it enacted, That it shall and may be lawful for the Gover- 
 nor of this Province, in Council, to direct the substitution of the Deben- 
 tures to be issued under this act, in heu of the said Debentures already 
 issued, upon application of the party holding the same. 
 
 VI. Andtbe it enacted, That so soon after the completion of the Canal 
 as the Tolls received thereon, for any one year, shall amount to the sum 
 of forty-five thousand pounds, currency of this Province, there shall be 
 charged on the Consolidated Revenue Fund thereof, an amount equal to 
 six per centum per annum on the private Stock subscribed, from the 
 time the same has been paid in, for the benefit of the private Stockhold- 
 ers aforesaid, or their legal representatives. 
 
 VII. And be it enacted, That it shall be lawful for the Governor of 
 this Province, in Council, at any time after such receipt of Tolls, to di- 
 rect to be issued to such private Stockholders, or their legal representa- 
 tives. Debentures for the amount of their respective claims, bearing in- 
 terest, and payable in the same length of time after their issue, and at 
 the same places respectively, as if the same were issued under the fore- 
 going provisions of this act, to the private Stockholders aforesaid, for the 
 priilcipal sum invested by them. 
 
48 
 
 VIII. And be it enacted, That in case any Certificate or Certificates, 
 or other documents, have been issued to any of the said private Stock- 
 holders, or their legal representatives or assigns, signifying that they, or 
 any of them, are or shall be entitled to receive the back interest men- 
 tioned in the said first, in part, recited act, or Debentures therefor, those 
 who shall lawfully hold such Certificate or other document, shall be en- 
 titled to the same payments or Debentures, and to none other, that they 
 would be entitled to, under this act, if such Certificates or other docu- 
 ments had never issued. 
 
 Errata. — Page 13, after the words "increased or diminished," on the 20th lino, 
 add — Amount expended at this period, £451,519. [See Table No. 1, first part.] . 
 
 Page 16, 24th line, add — Reference is made to Table No. 1, part 3rd, for a state- 
 ment of the Estimate of Toll for this year, and the amount realized. 
 
 Page 17, line 13, add — The relative amount of the cost of the Qsjaal, and the 
 amount paid, is shown in Table No. 1, first part, and Table No. 2. 
 
 Note. — The increase of Toll, in the downward trade, (which is the most certain 
 index of the improved prospects of the Canal, ) has been obtained for the four first 
 months of the present year, up to 31st July, • - . . £17,114 4 3 
 For the same period, in 1851, 14,286 8 8 
 
 Showing a gain of £2,827 15 7 
 
 Equal to about 20 per cent. 
 
Cornell University Library 
 4 M57 
 
 Brief review of the origin, progress 
 
 iiiiiiiii 
 
 3 1924 030 110 088 
 
 olin 
 
'mm 
 
 ^- 
 
 ?;■<. 
 
 '■'^M 
 
 m 
 
 W'' ' 
 
 I 
 
 <2-i* 
 
 
 ^^"''^ 
 
 
 k2«^-?-S>D; 
 
 .<^1 
 
 
 ?^ 
 
 ^ii^ 
 
 3LV 
 
 ">-/S^ 
 
 
 1 
 
 
 '^'^'^J^ 
 
 '-fe-;^^ 
 
 ;^-¥ 
 
 H^, 
 
 *.:=?..• *! 
 
 
 v?< 
 
 ':m 
 
 m^f% 
 
 ^■^^ 
 
 3^'55 
 
 ±1< 
 
 "^'^l 
 
 -^>I> 
 
 
 ^-^ 
 
 m