NORTHWESTERN UNIVERSITY LIBRARY EVANSTON ILLINOIS THE ILLINOIS AND MICHIGAN CANAL. JANUARY, 1851. PHILADELPHIA: JOHN C. CLARK, PRINTER, 68 DOCK STREET. 1851. THE ILLINOIS AND MICHIGAN CANAL. JANUARY, 1851. PHILADELPHIA: JOHN C. CLARK, PRINTER, C8 DOCK STREET. 1851. CIRCULAR No. 3 Office of the Board of Trustees of the Illinois and Michigan Canal, Philadelphia, January 8, 1851. TO THE SUBSCRIBERS TO THE LOAN OF 1,600,000 DOLLARS, FOR COMPLETING THE ILLINOIS AND MICHIGAN CANAL. By an order of the Board of Trustees of the 4th ultimo, the un¬ dersigned was requested to prepare a statement of the acts and pro¬ ceedings of the Board for the year ending 30th of November, 1850, and to cause the same to be printed for the information of the sub¬ scribers to the loan of 1,600,000 dollars. In accordance with this request, the subscriber submits the fol¬ lowing account of the principal proceedings of the Board for the past year. Circular No. 2, dated January 25, 1850, contained a statement of the acts of the Board for the year ending November 30, 1849. The present, therefore, will embrace the period between 1st December, 1849, and 30th November, 1850, and for the financial year, as esta¬ blished by the Canal law of February 21, 1843. * It is known to the subscribers to the loan, that the law of 1843 requires the Board of Trustees to make a report to the Governor of Illinois, annually, setting forth all the proceedings of the Board, to¬ gether with an account, in detail, of all receipts and expenditures, the purpos^ for which the last were made, to whom paid, amount, &c. (fee. Such a report for the past year has been made, and for¬ warded to his Excellency, the Governor, and it will probably be .'printed for the use of the Legislature; but the statements, schedules, &c. which accompany this report are entirely too large and too .numerous to be attached to a paper of the nature of this circular; .hence, an abstract, only, of the more important documents, which "■form the appendix to the annual report to the Governor, will be em- G00383 4 bodied in this communication, but sufficient, it is hoped, to convey- full information upon all matters of interest to the subscribers to the loan. 1. The Canal was opened for navigation on the 22d March, a period earlier by nearly one month than the opening in 1849; the frost, however, had not left the banks, and it was found to be not safe to admit the full head of water into the Canal until about the 10th April, but during the interval a sufficient depth was maintained to admit of the passage of boats drawing three feet. 2. A correspondence has taken place between the Board of Trus¬ tees and the Commissioner of the General Land Office, commencing in February last, upon the subject of an additional quantity of land claimed for the Illinois and Michigan Canal, under the principle established by the act of Congress of 9th May, 1848, granting to the State of Indiana " a quantity of land, which, together with the land " already received and holden by said State for the construction of " the said Wabash and Erie Canal, will make the full amount equal " to one-half of five sections in width on each side of said Canal." On the 19th March the Secretary of the Interior decided that the case of the Illinois and Michigan Canal was analogous to that of the Wabash and Erie, but as Congress was then in session, it was con¬ sidered expedient by the Secretary to have the additional grant con¬ firmed by law; accordingly a bill was prepared for that purpose and introduced in the Senate; on the 24th May it was referred to the Committee on Public Lands, and on the 16th July that committee reported it to the Senate without amendment; but in the great and absorbing questions then pending before Congress, no further action was had upon it. The Board has recently called the attention of the Commissioner and others to the subject, and it is believed that the bill will become a law at the present session of Congress. The quantity of land received by the State, under the grant of March 2, 1827, as appears by a report made by the acting Canal Commissioner, in 1844, was 286,045 acres. The entire quantity claimed under the principle established in the case of the Wabash and Erie Canal, is about 326,00Q acres. The balance due, therefore, to the Canal, is about 40,000 acres. o 3. The semi-annual interest due on the 20th March, on the loan of 1,600,000 dollars, was paid to holders of certificates in New York and in Illinois. No payment on account of the principal of the loan was made at that time, as the balance to the credit of the fund ad¬ mitted of so small a per centage it was considered expedient to con¬ fine the payment then made to the interest, and to make the whole payment for the year on account of principal, in October, after the notes for lands sold in September, 1848, had become due and collected. This, as will be noticed in its place, was done, and the payment on account of principal, in 1850, amounted to 15 per cent, or one per cent, more than was paid on same account in 1849. 4. The rates of toll for the year 1850, were, substantially, the same as those adopted for 1849: on a few articles they were re¬ duced, in the belief that the revenue, by and by, would be increased by inviting larger quantities of the reduced articles to take the Canal rather than other avenues to market. The Board, however, think it too early to introduce any very important reductions in the rates of toll without the most conclusive evidence that such reductions will ultimately promote the interests of the Canal. 5. The third annual sale of Canal lands and town lots was com¬ menced in Chicago on the 10th May, in accordance with a resolu¬ tion of the Board, duly advertised in, January, and the sale was con¬ cluded on the 17th May, after all the unsold lands and lots had been offered, as required by the law of February 21, 1843. The whole number of lots sold in Chicago, Lockport, Joliet, Du Page, Kanka¬ kee, Morris, Ottawa, and La Salle, was 325. The value affixed to these lots by the appraisers of Canal lands was 69,504 dollars, and they produced at the sale, 82,750 dollars. The number of acres of Canal lands sold 'at same time was 6443. The valuation was $37,701.60, and they produced $40,212.18. Sale of town lots, as above, 82,750 00 „ lands, do. 40,212 18 Aggregate of sales in May, 1850, - - - - $122,962 18 or $26,659.54 greater than the sale of May, 1849. 6. On the 18th of May, the Committee designated in the regulations 6 of the Board to examine the accounts of the Treasurer, consisting of the President, the State Trustee, and the Secretary, certified that they had performed that duty, and that vouchers had been rendered and examined by them, amounting to $122,976.17, for expenditures made by the Treasurer, between the 9th of May, 1849, and the 30th November, 1849, making together with all vouchers previously ex¬ amined by the same Committee, and passed to the credit of the Treasurer, an aggregate amount of $1,691,042.37, exclusive of pay¬ ments made on account of the interest and the principal of the loan of $1,600,000, receipts for which are contained in books on file in the office of the Secretary, and which in time will be audited and certified by the Committee appointed for that purpose. 7. The semi-annual interest due on the loan of $1,600,000, and 15 per cent, of the principal of the same, was paid in New York and in Illinois, on and after the 20th of October; details of these payments will be found in the statements appended to the Treasurer's report. 8. A few leases of water power at Lockport and at Joliet, have been made, and it is probable that ere long, additional leases will be applied for, inasmuch as there does not exist in the valley of the Illinois river or its branches, mill power so well situated, so constant, and so free from interruption, as that afforded by the canal and some of its feeders. 9. The canal was closed by ice on the 6th of December, making the period of navigation of the season of 1850, 259 days, against 224 days in 1849. Having thus detailed, in chronological order, the more important measures of the Board during the past season, we proceed to exhibit the details of the operations of the several departments of the work, and the results thereof. 10. Receipts and Expenditures for 1850. The report of the Treasurer, with the statements attached to it, exhibits the condition of the fund on the 30th of November, 1850, and all the moneys received and disbursed during the past year, will be found in detail in the schedules attached to the report, made to 7 the Governor of Illinois ; the nature of all expenditures will there be seen, to whom paid, &c. &c. The balance reported as unemployed and available, on the 30th November, 1849, was stated by the Treasurer in the last annual report, at - - $122,162 78 From this amount is to be deducted a sum of $6,146.36, erroneously carried to credit of receipts, on account of the loan of $1,600,000, as explained by the Trea¬ surer in his report for 1850, say - - - - 6,146 36 Balance available, 30th November, 1849, - - $116,016 42 Add amounts received from following sources, during the year ending, 30th November, 1850, as appears by the Treasurer's report, viz : Sale of Canal lands and lots, - - 263,907 04 Tolls received in 1850, ... 125,504 25 Interest and exchange, ... 4,718 96 Sale of old materials, &c., - - 196 65 394,326 90 Total, to be accounted for 30th of November, $510,343 32 The amount expended during the same period, by statement of Treasurer, was as follows ; Payments on account of principal and in¬ terest, oil loan of $1,600,000, between 1st of November, 1849, and 30th of November, 1850, ... 331,794 86 Maintenance and repairs of Canal, inclu¬ ding damages by freshets, &;c. - 56,415 20 General expenses and contingencies, 23,324 01 Canal lands, land damages, &c. - 12,270 51 Tolls, collectors and inspectors, draw¬ backs, &c., &c., - - - - 6,097 28 429,901 86 Balance to be accounted for, ... $80,441 46 Of this balance, $63,894.86 is deposited in the American Ex- 8 change Bank, New York, at interest, and the residue, $16,546.60, in Illinois. A schedule attached to the Treasurer's report, contains the weekly returns of tolls received by each collector during the year, to wit: Chicago, $87,425 48 Lockport, - 4,986 98 Ottawa, - 5,879 61 La Salle, 27,212 18 $125,504 25 Schedules containing details of payments made in New York and in Illinois, on account of principal and interest, on the loan of $1,600,000, in 1850, are attached to Treasurer's report. In order that all the receipts and expenditures, from the organiza¬ tion of the work under the Board of Trustees in 1845, to the 30th of November, 1850, may be exhibited at one view, the following table is introduced : Classification. Eeceipts. Expenditures. Loan of $1,600,000, - - $ 1,569,198 75 $857,094 78 Construction of Canal and feeders. 2,132 25 1,429,606 21 Canal lands, damages, &c.. 759,661 80 46,714 51 Maintenance and repairs. 1,015 74 170,534 77 Interest and exchange. 53,363 07 2,714 35 Tolls, 1848, 1849 and 1850, - 331,763 88 12,286 80 General expenses and contingencies. 3 00 117,745 61 Aggregate receipts and expenditures, $2,717,138 49 $2,636,697 03 Balance of receipts, as before stated, - - . $80,441 46 The amount of the notes remaining unpaid, for lands and lots sold in 1848, 1849 and 1850 (excluding forfeitures for non-payment of instalments), is $328,009.25, due in one, two or three years, re¬ spectively. 11. By the report of the Secretary of the Board, it will be seen that between the statement of the disbursements in 1850, as made by the Treasurer in his report, and that made by the Secretary, 9 there is a discrepancy of $2,968.75, growing out of a payment made on account of the loan of $1,600,000 in 1849, but not charged in the expenditures of that year, as stated in the Treasurer's report of this year. Statements have been rendered with the annual report, containing lists of canal lands and town lots, sold in May, 1850, showing the appraised value of each lot sold, and the amount produced, viz: 6,442 acres of land valued by the Canal appraisers at $37,821.00, produced at the sale $40,212.00; and 325 town lots in Chicago, Lockport, Joliet, Ottawa and La Salle, valued by the appraisers at $69,504.00, produced $82,750.00. Also, a statement containing a general account of all the lands and town lots conveyed to the Board of Trustees, the valuation as affixed by the appraisers of Canal lands, under the laws of February 21, 1843, and February 8, 1849 (the last reducing the valuation on the unsold lots in La Salle, as explained in report of 1849), prices at which the lands and lots were sold in each of the years of 1848, 1849, and 1850, finally, the quantity of lands and town lots remaining unsold on the 30th of November, 1850, with the appraisers' valuation of same attached. The following summary will exhibit the general result which this last statement furnishes ; first, Canal lands : Years. Acres. Valuation. Sold for. 1848, 45,625 $208,021 $210,775 1849, 6,985 41,358 41,912 1850, 6,443 37,701 40,212 Aggregate, Unsold, 59,048 $287,080 $292,899 172,721 $812,153 Second, Town lots in Chicago, Lockport, Du Page, Kankakee, Morris, Ottawa and La Salle : Years. Number of lots. Valuation. Sold for. 1848, 2,244 $505,124 $554,864 1849, 341 65,877 70,974 1850, 325 69,504 82,750 Aggregate, Unsold, 2,910 640,505 708,588 3,029 333,864 B 10 Recapitulation. Valuation. Sold for. Lots and lands sold, - - . $927,585 $1,001,487 do. do. unsold, - - - 1,146,017 Next in order in the Secretary's report, is the statement of the agent of Canal lands. This report embraces an account of the agent's proceedings, from the date of the last printed annual report (1st December, 1848), to the 30th November, 1850, including an account of moneys received for rents, stone, timber, &c., and accounted for by him, amounting to $4,077.94, and a statement of the condition of the leases of Canal lands and lots; sales of stone, old materials (remains of work prior to the organization of the Board of Trustees), trespasses on Canal lands and timber, rents, fallen, or down timber, &;c., &c. A statement appended to the report by the Secretary, contains a list of all articles of property cleared at the several Collector's offices, during the year 1850, viz: at Chicago, Lockport, Ottawa and La Salle. The aggregate number of miles passed by boats navigating the Canal in 1850, was 333,141, equivalent to 3,501 boats through the entire Canal. The aggregate number of miles travelled by passengers, was 2,967,384, equivalent to 30,910 passengers through the entire Canal. Taking some of the same articles transported on the Canal in 1848 and 1849, and comparing them with the quantities transported in 1850, it will be seen where the increase is, and where the decrease in the articles enumerated has taken place, for example : 1848. 1849. 1850. Pork, barrels. 3,428 9,398 12,933 Salt, ,, " " - 32,656 58,853 24,609 Sugar, pounds. 3,219,122 4,218,298 5,680,324 Merchandise, pounds. 4,948,000 9,176,943 10,372,623 Wheat, bushels. - 454,111 579,598 417,036 Corn, „ - - 516,230 754,288 317,674 Coal, tons, - 5,416 7,579 3,361 Lumber, thousand feet, - 15,425,357 26,882,000 38,687,528 Tolls received. $87,890 $118,375 $125,504 11 The last schedule accompanying the report of the Secretary, con¬ tains the names and occupations of all officers and agents, in the ser¬ vice of the Board of Trustees, on the 30th of November, 1850. 12. The report of the General Superintendent of the Canal, con¬ tains an account of the operations in his department for the year 1850 ; in it will be found all the information required in reference to the management of the Canal, the working expenses, interruptions by freshets, &;c. It will be seen that two breaches, producing serious interruption to the navigation of the Canal, have occurred during the past season, one on the morning of the 19th of August, and the other on the evening of the 20th of August; both occurred near Morris, upon the twenty-two mile level: the first breach was through the tow-path, and was comparatively not so serious ; that is to say, about 100 feet in length of the bank was washed out to the depth of 41 feet below the bottom of the Canal, requiring about 8000 cubic yards of material to repair it; this was effected on the 31st August, and by means of a dam thrown across the Canal at the lower end of the basin in Morris, boats drawing three feet of water, were enabled to reach that place from above. The second breach was a very serious one, involving as it did, the destruction of the Nettle creek aqueduct. During the day and night preceding these disasters, there had been an extraordinary fall of rain, stated by one who measured it, to be between eleven and twelve inches ; and as the entire drainage of the country is received into the Canal at the upper end of this twenty-two mile level, and for a distance of about one-third the length of it, the wastes which in ordinary times have been ample to discharge the surplus water from the Canal, were not sufficient upon the occasion stated, to relieve the banks. Nettle creek aqueduct, was a structure composed of cut stone abut¬ ments, built upon a pile foundation with a timber trunk ; the water way for the creek being thirty-five feet wide by sixteen feet high, the abutments were undermined by the flood, and for a distance of eighteen feet in length, the piles were carried away, and the space between the abutments washed out to the depth of five or six feet below the foundation. A temporary structure upon trestles was put up with the least practicable delay, but it was not until the 15th of September, that the work was sufficiently advanced to admit the water into the trunk. 12 Two breaches through the dike and the tow-path upon the sum¬ mit level, occurred in September; the effect of these was to admit the flood water and a quantity of deposite, from the Des Plaines river into the Canal, but the detention to boats did not exceed twenty- four hours. The supply of water for the Canal, except on the Joliet level, for a few days in June, has been sufficient. The streams fell to their low water stage unusually early, say about the first of June, and at that time there was but three feet of water in the Illinois river, at Spring creek bar, five miles below Peru. The pumping engines were in operation 191 hours, and the wheel 233 hours, during the season. The total quantity of water raised by both engines was 99,031,000 cubic feet. Appended to the Superintendent's report is an abstract of pay¬ ments made in 1850, for maintenance and repairs of Canal and feeders, amounting in the aggregate to $58,415.19. Of this sum the General Superintendent remarks, that the breaks at Morris and on the summit level, cost about 9000 dollars, and that the further sum of 9000 dollars was expended for the construction of works not pro¬ perly belonging to ordinary repairs, but considered necessary for the successful use of the Canal. The following table is extracted from the General Superintendent's report; it exhibits the cost of maintenance and repairs in each of the years 1848, 1849 and 1850: deducting from the gross sum for each year the cost of extraordinary repairs rendered necessary by freshets, value of tools and materials purchased and on hand, in each year, &c. The balance will show the sum properly chargeable to ordinary repairs. 1848. 1849. 1850. Total maintenance and repairs. $43,197 $70,922 $58,415 Deduct items enumerated above, 6,744 26,999 19,996 Cost of ordinary repairs. $36,452 $43,922 $34,418 Average cost per annum, of all expenses. - $57,511 „ „ ordinary repairs. - 38,264 13. In reviewing the operations of the season of 1850, we shall find in an examination of the returns of articles transported on the 13 Canal a very unexpected result, viz. that wheat and other bread- stuffs, instead of passing through the Canal, from the Illinois river to Lake Michigan, have taken the opposite direction, and large quan¬ tities have been drawn from Michigan and even from points as far east as Buffalo, for the supply of the Saint Louis market, the prices there having been such as to create this unlooked-for diversion; a consequence of this has been to withdraw from the Illinois river articles of food, in large quantities, which ordinarily would seek a market eastward, via the Canal and the lakes. For example, between the opening of navigation and the 31st August, the wheat and grain which was shipped at Chicago for Saint Louis was equal to 265,000 bushels, and the quantity arriving at Chicago, in the same time, less then 40,000 bushels. Again, the quantity cleared at La Salle, in 1850, was but 161,000 bushels against 290,000 in 1849. In the article of corn this is still more striking; the quantity cleared at La Salle, in 1850, was 104,000 bushels against 632,000 in 1849. This condition of the trade pre¬ vented boats from Chicago, with lumber, salt, and merchandise, down the Illinois river, from securing any return freight. In addition to this untoward circumstance, cholera made its ap¬ pearance again; the water in the Illinois was unusually low from the middle of May to the middle of August; the interruption to the navigation at the busy season of the year by the breaks in the Canal, and finally, the uniform higher prices paid in Saint Louis for pro¬ duce than in Chicago. Notwithstanding these serious drawbacks, the general result of the operations of the year exhibits a small increase in the revenue, of from 118,395 in 1849 to 125,504 in 1850, with the prospect that the business of 1851 will be more favourable than that of the past year. 14. It has been brought to the notice of the Board of Trustees, that a company known as the "Aurora Branch Rail Road Com¬ pany," chartered on the 9th February, 1849, to construct a rail road " from the town of Aurora, in the county of Kane, to some eligible " and convenient point in the county of Du Page, and there to con- " nect with the Galena and Chicago Union Rail Road," claims, under its charter, to extend a branch from Aurora to Ottawa, La Salle, Slc. and it is understood that measures have been taken by those in- 14 terested in the Aurora Branch Rail Road, to have the stock taken in the contemplated " branch" from Aurora to Ottawa, &;c. with a view to the actual construction of the road. It is not to be supposed that the Legislature intended that the grant to the " Aurora Branch Rail Road Company" should confer any authority upon that Company to construct a rail road from Chi¬ cago to La Salle, the beginning and the end of the Illinois and Mi¬ chigan Canal, yet practically, this would be the effect, if the avowed object of this Company should be carried out. The State has too large an interest in the Illinois and Michigan Canal, to suffer its legitimate business to be diverted from that chan¬ nel, by acquiescing in this extraordinary assumption of authority on the part of the Rail Road Company; still as the Company have un¬ dertaken to assert their claim to this right, the Board of Trustees has protested against such an exercise of power, and it has brought the matter to the notice of the Governor of the State, praying him to lay it before the Legislature, in order that that body may, by some declaratory act, protect the joint interests of the State, and of those who contributed the means to complete the Canal; nothing can be more clear, than the injurious effect which would be produced upon the business of the Canal, if this road were allowed to be con¬ structed between Chicago and La Salle; but in addition to this conj sideration of the interest of the State in the matter, it is believed that the Legislature will sanction no such violation of vested rights, as the construction of this " branch " rail road would produce. Estimate of the Revenue for 1851. Notes receivable in May and September, for lands and lots heretofore sold, say - - . - $250,000 00 Sales of lands and lots, to be made in May, 1851, say 20,000 00 Canal tolls, 1851, say ------ 160,000 00 Interest, rents, «fec., &c., say . - - . 4,000 00 Add balance in Treasurer's hands, on the 30th of No¬ vember, 1850, as by his report, - - - - 80,441 46 $514,441 46 15 Estimate of Expenditures, 1851. Maintenance of Canal and feeders, ... - $45,000 Repairs before opening, 10,000 General expenses and contingencies, - - - - 25,000 Canal lands, &c., - 10,000 90,000 Payment on account of principal and interest, of loan of $1,600,000, say 350,000 $440,000 WILLIAM H. SWIFT, President. APPENDIX. Board of Trustees. William H. Swift, President, Philadelphia. David Leavitt, Treasurer, New York. Joseph B. Wells, State Trustee, Chicago. List of Officers and Agents employed by the Board of Trustees of the Illinois and Michigan Canal, in service Nov. 30, 1850. Name. W. Gooding, E. B. Talcott, E. S. Prescott, W. W. Saltonstall, J. Galloway, A. J. Mathewson, Joel Manning, H. M. Singer, W. Whaley, A. Guthrie, L. W. Claypool, J. H. Kinzie, D. L. Hough, S. Gooding, A. F. Dow, S. H. Macey, L. D. Davis, M. Kehoe, Occupation. Secretary, General Superintendent, Agent Canal Lands, Clerk Secretary's oflSce, State Trustee's clerk, Surveyor and Draughtsman, Clerk Canal Lands, Ass't Superintendent and Inspector, do. do. Steam Engineer, Assistant Agent Canal Lands, Collector, Chicago, do. La Salle, Assistant Collector, Lockport, Assistant Collector, Ottawa, do. Bridgeport, do. La Salle, Porter, State Trustee's office. Compensation. $2000 2000 1100 1250 800 1000 2 700 700 2 500 1500 1450 400 400 400 500 20 >> jj 00 per annum. 00 „ 00 „ 00 00 00 „ 00 per diem. 00 per annum. 00 „ 25 per diem. 00 per annum. 00* 00* 00 00 00 00 „ 00 Y^Av YnnnfTi. yy yy * Including allowance for clerk hire. I 16 Lock Tenders. Royal Fox, - A. J. Hobart, - S. Finch, - R. Wright, ... P. Haynes, - J. Voorhees, - John Temple, - Ira Potter, ... John Nicholson, - - - James Curtiss, - C. Robbins, - W. H. Niles, H. Mayhew, . . . $300 per annum. »» JJ »» 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 The Trustees receive an annual compensation of $2500 each. The term of office of the present Trustees on the part of the sub¬ scribers to the loan, terminates on the 28th of May, 1851.