i* SP^fe^.. £j£ jJ-j 44*^* '■^ - *rrj. fevc -*itf » - rv. C.-; •’<-•*.' •*V t ^ -ijV'..^ • '.:> ';.; - - 7*&Ar* • A '■t- ■ ^ « V ^ ». . *■» Bt'i 3 *: Uv'T /#/»■ 3 ^ P*r ix : -i fm * - T- S . & V \\^v\s or Co. \ cVt\<^a*t\ ■ ' :*»!«;• ; SB&S&&3 ga& ^ tv twor^ o ^^e. |js$ d 'o od=>. !;■'. 3 h-J KM® . -. -* . - • . . ': Xr--~ ■■ •r ; .v\- *>•■ t$Sm9h*-$. g&ygp&.-. ^llpE3i§yi'SNi : Sf-C-Vf- s.-?;-,.*-*^. : 2 - ';c ge-i it!? - 4 - 4 .- . tvA-: >-> 3 k&s^£ .SgiSF* •,< * *- 3 ; , t '-‘ ft «'' i.V-M; ' ■ 'ir ; V ' ri: . SsfaSSr^ ♦*" “V3 ' wt: - -“• * im : 5 »! M 8 & SKW.-' d*-V..; IsPiPsIl S&tMp&J**■'• .W-VSite? v 3 ^* r- -v* <#?.V,. 2 f^' : . «*..VF;t -. ■' viC& W • 4-v • -*>ir**« t , *t*-'-•• ‘-tir • >% ‘A ifei v^~ t S 5 CvS® r * 1: : ^ w‘ CWYY\ My 0S-15M . mm ; r? „• iv. • - ^ < f'*'- . • . ; - r . . . • * ' - ' 'Y. ' V* * ‘ . • v - • r ?! - ' ' v ' r • . Jtk. . - ■.£■: - -*, • _ ■ x,r 'S&+ ■»:xit >'■' ‘• N > rv . -fll ‘ H , -V -/f - . — . •. 1 ifilSi W-V* ' x" :.S:. .-. ; i - '■ %; •-*. : - i ;" ' .'■ : -■ > • . •:.\ r- ■'-/I; Sturgeon Bay AND Lake Michigan Ship Canal AND Harbor Company. J\few Yoi‘k Office, 2 14 BEOA DWAY. +■ HENRY SEIBERT & BROS., Lithographers, Ledger Building, NEW YORK. P F F I C E R S : President. WILLIAM B. OGDEN, New York. Vice-President. THOMAS H. BEEBE, Chicago, III. Secretary. JOSEPH HARRIS, Sturgeon Bay, Wis. Treasurer. WILLIAM E. STRONG. Chicago, III. Chief Engineer. WILLIAM T. CASGRAIN, Milwaukee, Wis. PIRECTORS: William B. Ogden, New York. Jesse Spaulding, of Spaulding, Houglitaling & Johnson, Chicago and Menomonee, Mich. Isaac Stevenson, of N. Luddington & Co., Chicago, and Marinette, Wis. F. B. Gardner, Chicago, and Pensaukee, Wis. Thos. H. Beebe, of Peshtigo Co., Chicago, and Peshtigo, Wis. Joseph Harris, Sturgeon Bay, Wis. C D. Robinson, Green Bay, Wis. Trustee for Bondholders. M. L. SCUDDER, Jr. •'AS.HV^'O.T^N » kwic***' iata STriUiKOX HAY >i*AL tflCruot mSrONSfNVMKIIK.VX AND ADVANTAGE S OF THE ’0/ »TUA#tON 8*r -* 'sll rt »ICmQAHS** C \ 5 " -.fiHUtAVf) ’ *—» i gfi# z. J- •;/ M gfcfi Mm $ 350,000 FIRST MORTGAGE GOLD BONDS OF THE 1 * Sturgeon Bay and Lake Michigan Ship Canal and Harbor Company. SE^EN FEE CENT. INT E EE ST, Payable Semi-Annually in Gold, AT THE OFFICE OF THE COMPANY, IN NEW YORK CITY. Due February- 1st, 1894. Office, National Park Bank Building, 214 Broadway, New York WM. B. OGDEN, President. M. L. SCUDDER, Jr., Trustee. HENRY SEIBERT & BROS., Printers, Ledger Building, NEW YORK. merce CORRECTION. . * y CJ>

b> r THE CONDITIONS OF THE MORTGAGE. By advice of counsel, the terms of the mortgage de¬ scribed in this pamphlet, were changed and amended before execution, as follows: The Canal Company retain possession of their property, and manage it; but all net receipts from Canal, and also all re¬ ceipts from sale of lands, are to be paid to the Trustee, and are to be applied by him to interest and Sinking Fund, Semi-annual statements of accounts are to be made by the Canal Company to the Trustee, and in case of non-performance of contract or waste, the Trustee is entitled to enter and take possession of the property. Full power is given to the Trustee to employ agents fre¬ quently to examine and report on the condition of the property. The Trustee is also empowered to sell $30,000 worth of the lands annually for the benefit of the Sinking Fund. The appraisal of the land for sale is to be made by the Canal Company, and approved by the Trustee, who may appoint an agent to examine and determine the value of the property. d he Sinking Fund is to be drawn upon semi-annually in February and August, to pay out standing bonds by lot, provided the fund shall amount at such dates to $5,000 or more. iP The Jponds are made receivable in purchases of land or stand¬ ing timber at one hundred and ten and interest, in currency. n ' : I ■ > Digitized by the Internet Archive in 2018 with funding from University of Illinois Urbana-Champaign Alternates M https://archive.org/details/sturgeonbaylakemOOstur PARTICULAR ADVANTAGES OF THE $350,000 GOLD BONDS OF THE 1st. First Lien on Real Estate valued at over $1,000,000. 2d. First Lien on a Canal through which over 800,000 tons of shipping will pass every year, at an annual saving of $150,000. Sd. Entire Income of Canal pledged, after paying run¬ ning expenses, to pay Interest on Bonds and provide a sinking fund for their redemption. 4th. 200,000 acres of land to be sold by Trustee, and entire proceeds of sale to be applied to sinking fund, for redemption of Bonds. 5th. The whole of the security in the hands of Trustee to be managed solely for the advantage of the Bond¬ holders. 6th. The Canal is built in the interest of CHEAP TRANS¬ PORTATION. When the Bonds are paid, the Canal ivill become free, and all the influence of every shipper and ship-owner in the States of Wisconsin and Michigan, and in the Cities of Chicago, Cleve¬ land, and Buffalo, will be used to urge the general Government to pay these Bonds. 7th. The United States have a right to pay these Bonds, and make the Canal free. 8th. The United States have spent, and are spending, considerable sums in making a harbor of refuge at the Lake Michigan end of the Canal, which cannot be used except in connection with the Canal. This 4 will be the best harbor on the west shore of Lake Michigan, north of Milwaukee—that is, for a coast line of two hundred miles, where it is veiij much needed. 9th, The Principal of these Ponds, payable in Gold, will probably be paid within a few years, if not by the general Government, then by the sinking fund. With the present prospect of an advance in gold this promises a very profitable investment. 10th. A portion of the Bonds, drawn by lot, will be paid off, at par and interest, within the next two or three years, and at short intervals thereafter, from the sinking fund. If these Bonds are purchased below par, the holders will realize a handsome profit. Util. The proceeds of the sale of these Bonds is ampl'e to finish the Canal and provide for all • contin¬ gencies, and pay interest until the Canal is com¬ pleted. The Trustee receives all this fund and ap¬ plies it for these purposes, until the whole work is completed. 12th. More than one-quarter of work of constructing the Canal has been done and paid for, and the Canal Company are out of debt. The affairs of the Com¬ pany and the work of building the Canal are subject to examination, and have been frequently examined bifirthe Goreminent of the State of Wisconsin, and the reports of such examinations are public docu¬ ments. 13th. The United States Government, the State of Wis¬ consin, and particularly the Canal Company itself (composed of some of the largest shippers cn Lake Michigan, who have spent over $100,000 on this undertaking themselves), are directly bound to see that not one dollar of this fund is wasted, but that the work is done in the most economical and thorough manner. And the trust securing these Bonds has been contrived with all these extraor¬ dinary safeguards for bondholders, that this safety and economy may be fully provided for. THE STURGEON BAT AND LAKE MICHIGAN SHIP CANAL. In the following pages we shall refer only to official sta¬ tistics and quote only official documents. By this w T e mean statistics and documents certified to by officers of the United States or of the State of Wisconsin. We will not in anyway discount the future in these pages. AVe will not ask any one to assume that the commerce of Lake Michigan will in¬ crease in amount and in value, nor that the country around Green Bay will ever become more prosperous, nor ever more fully develop its latent resources. We will simply take it for granted that those who are now engaged there in cutting lumber and raising grain and other produce, and mining and making iron, and in other profitable pursuits, will continue at their work. If w*e should adopt the usual course and ask the reader to com- pare this year’s commerce, with that of last year, and that of last year with that of the year before, and thus forming a ratio of progression, imagine the commerce of ten or twenty years hence, we could show very seductive figures. But we prefer to take things as they are, looking coldy into the future, and if the wraith of our country goes on multiplying itself, 'we shall be so much the better off, not having expected it. The Sturgeon Bay and Lake Michigan Ship Canal can be 6 best seen upon the new map of the United States, published by the Commissioner of the Land Department at Washington, by authority of Congress. Its advantages to the commerce of Lake Michigan can be best understood from the chart of the coast survey, which lays down the courses between the principal ports of the lake. The Canal is a cut-off between the waters of Green Bav and */ Lake Michigan, and at the sameTime opens a harbor of refuge. Sturgeon Bay is a long and funnel-shaped indentation, running from Green Bay into the peninsula lying between that body of water and the Lake. The shores of Sturgeon Bay are high and well wooded, its water deep and well protected. If it opened south from the lake it would furnish tlfe largest and safest and most convenient harbor on the whole chain of the lakes. The object of the Sturgeon Bay Canal is to open it to the South by cutting a channel one and one-quarter miles long, and in addition to making Sturgeon Bay a harbor of re¬ fuge, make it a safe channel for vessels which now go a long way round and run through dangerous waters. A company was organized to do this work in 1856. But it accomplished nothing and its charter expired. The present company was chartered in 1861, and began work in 1872. In 1866 Congress granted 200,000 acres of land to aid in the con¬ struction of the canal, and in'1866-1867 the route of the canal was surveyed. In 1871 Congress ordered a more thorough survey. This survey was made and was very careful and com¬ plete, and since that time the company have been prosecuting the work, using their own means. In this way they have com¬ pleted more than one-quarter of the work, have spent over $100,000 in doing so, and have demonstrated the easy accom¬ plishment of the whole work at a moderate cost. They have let to responsible parties, having ample security, the contract for completing the canal, at a price considerably less than the amount of the bonded debt. The balance of the proceeds of these bonds, will provide for all contingencies, and pay the in¬ terest on the principal until the canal begins to earn income. Full particulars of the contract and the work to be done will 7 be shown to any one inquiring, at the office of the Canal Com¬ pany in New York City. THE CONDITIONS UNDER WHICH THE BONDS ARE SECURED. The common manner of securing a mortgage debt is by deed of trust, providing that only upon default of interest, the creditors or their representatives shall have control of the property and manage its income. In other cases, as long as the interest and other dues are paid, all other income is under the control of the mortgagor. But, in this case, in conse¬ quence of the peculiar relations between the Canal Company and the State of Wisconsin, and also on account of the inten¬ tion of the stockholders of the Canal Company (who are also shippers and desire a free canal) to apply all revenue to paying off the debt as soon as possible, the trustee representing the # bondholders takes possession at once of the canal and the lands of the Canal Company and appliesjevery cent of income and of proceeds of sales of lands, after paying actual expenses, to the sinking fund. In other words, the Canal Company trans¬ fer their property to the bondholders saying, substantially, pay yourselves out of the property and give us what is left. How perfect a security this gives the bondholders, can be best understood, when it is considered, that over one hundred thousand dollars is already invested in this work, by shrewd and careful men, who are willing to wait, not only for the principal, but also for interest of their investment, until the bonds are paid in full. It is hardly necessary to add that these stockholders expect the lands which are left after the debt is paid, and the canal is made free, to pay them for waiting. No mortgage so perfect for the full protection of bond¬ holders, so far as we know, has ever been devised. THE SINKING FUND. It is made the duty of the Trustee to invest all moneys coming into his hands, after paying expenses and interest, in 8 gold bonds of the United States, and whenever these accumu¬ late to the amount in value of $25,000 or more in gold, to draw by lot, bonds for payment, and to advertise and pay the bonds so drawn at par and interest. INCOME OF CANAL—CALCULATED FROM OFFICIAL STATISTICS. The following figures, taken from Custom-houses, show the actual departures and arrivals for 1872, at the prominent ports of Lake Michigan, of vessels sailing on courses which could be shortened at least 150 miles on each round trip, by passing through the Sturgeon Bay Canal: Departures to Menominee and ports on Green Bay south of Menominee: Ports. No. Total. Tonnage. Total. Chicago. Sailing Vessels. . . 794 194,753 Barges. 167 69,598 Steamers. 181 1,142 67,677 332,028 Kenosha. 2 169 Bacine. 23 4,920 48,783 Milwaukee. 152 Manitowoc. 12 1,541 Sheboygan. 2 191 180 55,593 1,333 387,621 9 Arrivals from Menominee and ports south of Menominee on G reen Bay : Ports. No. Total. Tonnage. Total. Chicago : ' Sailing Vessels .. 949 210,686 Barges. 217 87,172 Steamers. 169 1,335 59,974 357,832 Sheboygan. 3 35 Manitowoc. 7 928 Milwaukee. 137 39,504 Bacine. 25 4,966 Kenosha. 3 175 330 45,763 Total arrivals. 1,510 403,595 Total departures. 1,333 387,621 2,843 791,216 The number of vessels passing between these ports is in¬ creasing each year; but, figuring on these alone, the income of the canal will be ample for all its expenses and the interest on its bonds. Each of these vessels will save about one day in time by using the canal, to say nothing of avoiding the dan¬ gerous passage of Death’s Door. The expenses of any average vessel are more than $50 per day. If an average charge of $20 per vessel is made for use of the canal, this will give a gross annuaHncome of $56,860 to the canal, and cause a sav¬ ing of at least $85,290 per annum to the vessels running between the ports above named. The revenue of the canal will not be limited to tolls on these vessels, however. Many vessels sailing on other courses can use it to advantage, on account of the greater danger of J o o passing through Death’s Door. This dangerous passage is annually the cause of several wrecks. In 1871, thirteen ves- 10 sels with their cargoes, consisting of grain, lumber and coal, were lost there, the estimated value of which amounted to nearly $250,000. And even if there were no saving in time, many vessels sailing from ports in Green Bay to other ports than those named above would prefer to pay the tolls of the canal rather than risk the dangerous passage into Lake Michi¬ gan. To estimate how large an amount this shipping is, we take the record kept by the keeper of the Green Island Light¬ house (off the entrance to Sturgeon Bay) of the number of ves¬ sels which passed liis light during the seasons of 1868, ’69 and '70, as reported by him to the Light-house Board at Washing¬ ton. Ilis books show that the yearly average of these three years was 7,350 vessels. Estimating according to the average tonnage of lake vessels (250 tons), this shows a gross ton¬ nage of 1,837,500 tons. If the tolls of the canal were fixed at the low charge of three cents per ton, this would produce a revenue of $55,125, The shipping of Green Bay has increased materially since 1870, and is growing in amount and value yearly. It is safe to predict an annual income of $60,000. This income of $60,000 per year will be ample to pay ex¬ penses, including cost of towing, and interest on bonds, and cany $20,000 to sinking fund. The account will stand as follows: Income, say. $60,000 Expenses of tug. $3,000 Fuel, oil, etc. 3,000 Superintendent, clerk and watchman. 3,000 Repairs, etc. 1,000 -$10,000 Interest, 7 per cent., on $350,000.$24,500 Premium on gold, 15 per cent. 3,675 --28,175 --— 38,175 For sinking fund from tolls of canal.$21,825 From this source alone, if the revenue does not increase? the debt of $350,000 would be extinguished in thirteen years. 11 But when we consider that [in addition to this amonnt the sinking fund will receive all the proceeds from sales of the two hundred thousand acres of valuable lands, it is safe to predict that the whole debt will be extinguished within ten years, or even a less time. This calculation is designed to show that the net income of the canal can, under any circumstances, pay the obligations of the mortgage. It is not designed to force the revenue be- yond this point. The canal is built in the interest of the commerce of Green Bay and Lake Michigan, and not for the benefit of stockholders. It is provided by law that after re¬ paying its cost it becomes free, and those having charge of it are obliged by the provisions of the acts relating to it to operate it for the public good, and not for private profit. Therefore, as commerce increases, pro rata , charges will be diminished. The object of the managers will be to reduce and keep the net income as near as possible to $43,500 gold, or its equivalent in currency. A sum sufficient for interest and sinking fund. The following table shows the effect of such an income in paying off the debt. Calculation of effect of sinking fund in paying debt of $350,000 gold on supposition that income of canal is $60,000 at present value of currency (87 per cent, of gold), and ex¬ penses of operating of canal are $10,000 currency—leaving net income for interest and sinking fund $50,000 currency, or $13,500 gold : 1st vear Interest. INCOME. . $ 43,500 . 24,500 PRINCIPAL. $ 350,000 19,000 2d year. Interest.. . 43,500 . 23,170 331,000 20,330 3d year. Interest. . 43,500 . 21,747 310,670 21,753 4th vear. «/ Interest. . 43,500 . 20,224 288,917 23,276 # 12 5 th year. Interest. INCOME. . $ 43,500 . 18,594 PRINCIPAL. $ 265,641 24,905 6th year. . 43,500 240,736 26,649 Interest. . 16,851 7th year. Interest. . 43,500 . 14^986 214,087 28,514 8th year. Interest. . 43,500 . 12,990 185,573 30,510 9 th year. Interest. . 43,500 .. 10,854 155,063 32,646 10 th year. Interest. . 43,500 . 8,569 122,417 34,931 lltli year.. Interest. . 43,500 . 6,121 87,486 37,876 12th year. Interest. . 43,500 . 3,508 50,110 39,992 13th year. Intei^est. . 43,500 . 708 10,118 708 42,792 10,826 10,826 Balance over after paying debt.31,966 THE RIGHT OF THE UNITED STATES TO PAY THE DEBT AND MAKE THE CANAL FREE. By the act of Congress granting the 200,000 acres of land to aid in building the Sturgeon Bav Canal, the fight was re- served to the United States to pay at any time the liabilities of the canal, and thereafter the owners of the canal would be restricted to charging only such tolls as would be sufficient to pay the actual expenses of operating it. The canal is a neces¬ sary part of the Harbor of Refuge which the government have partly built, and are eacli year appropriating funds to carry on to completion. It is easy to see, therefore, that all interested in cheap transportation, as well as in the safety of the com- 13 merce of the lakes, will desire the government, as soon as possible, to pay off the debt and make the canal practically free. THE HARBOR OF REFUGE. In order to make the canal perfect as a harbor of refuge the Government have made cash appropriations for the past two years, and have built substantial piers, running seven hundred and sixty-two feet into the lake on each side of the Lake Michigan end of the canal. The full report of the United States engineers surveying and in charge of this work will be found at the end of this pamphlet. When completed according to the plans of the United States engineers, which it will be seen do not involve great additional expense, 1 "and by the open¬ ing of the Sturgeon Bay Canal, it will furnish the only perfect¬ ly safe harbor on the west shore of Lake Michigan north of Milwaukee, that is for a coast line of nearly two hundred miles, where a refuge is very much needed. This harbor will be perfectly land-locked, and deep enough and large enough, including Sturgeon Bay, to float all the vessels on the lake. THE VALUE OF THE 200,000 ACRES OF LAND. This land was granted by Congress in 1866, and was lo¬ cated by the terms of the grant. The company have from time to time made examinations of it. They have spent over $10,000 in this examination and have reports of the character and quality of 129,626.87 acres, leaving 70,373.13 acres un¬ examined. This unexamined land lies on the head-waters of the small streams that empty into the Peshtigo and Meno¬ monee rivers, and is said to be mainly pine and hard-wood land, with indications of iron ore on some sections. The projected extension of the Milwaukee and Northern Railroad will pass through this region. The examination of this land will be prosecuted as it may be found necessary or advisable. Of the examined land 57,775.70 acres are reported to be good pine land, on streams readily accessible to lumbermen. Land of this character in this region is now selling at from $10 to $20 14 * per acre, and some sales are reported at higher prices. In one notable instance, $50,000 was paid for 640 acres. This high priced land was situated in the vicinity of some parts of this grant, on the head-waters of the Wolf river. It will be seen that the price per acre was, in this instance, over $78. Of the remaining examined lands, 3,341.95 acres are lands burned over by the great fires of 1871, 17,172.63 acres are well situated hard-wood and farming land and 51,336.59 acres are of inferior value, being marsh, tamarack and cedar swamps, pine lands from which pine has been cut, and hard¬ wood and farming land of inferior quality. A considerable por¬ tion of the lands last named and the burned lands are near to the track of the Northwestern Railroad, and are in demand for various purposes at low prices, say $2 per acre. The hard¬ wood and farming land (17,000 acres) are of the best quality. The company have on file applications from persons desiring to purchase the larger part of the land of this class. The price will not be less than $5 per acre, and for much of them $10 per acre can be readily obtained. Taking the various circumstances into account, the direc¬ tors of the Canal Company, who have had long experience in, and extensive knowledge of, this country, think that they are justified in saying to bondholders, that the entire grant is worth more than $1,000,000, and that it can be sold within a few vears to realize more than this sum. c/ At all events the bondholders can he satisfied that the stockholders of the Canal Company believe the lands to be val¬ uable to a considerable amount above the mortgage debt, be¬ cause all return which they can expect from their investment already made must come out of the lands after the mortgage is paid. The Canal Company are required by the spirit of the law granting the lands, to offer them for sale at reasonable prices; but it is not their duty or their policy to force these sales too rapidly. The land, as fast as is deemed advanta¬ geous, will be offered for sale at prices fixed by a fair apprais¬ al. This appraisal will be made by one appraiser selected by 15 the trustee and one selected by the Canal Company, and in case these two do not agree, the trustee will decide. When the land is sold the trustee will give the deed, and apply the pro¬ ceeds of the sale as provided in the trust-deed to extinguishing the debt. The Company possesses one advantage in holding the land. By special law the lands are free from taxes of all kinds for ten years while held by the Company. THE CANAL. The canal is to be one hundred feet wide and thirteen feet deep below low water mark, which will accommodate the larg¬ est vessels on the lakes. This work of building the canal is es¬ timated to be removing one million cubic yards of sand. (For estimates of engineers, see reports at end of this vol¬ ume.) Tw r o hundred and sixty-two thousand cubic yards have been removed. The remainder of the work has been let to Messrs (). B. Green and Fox & Howard, of Chicago, contrac¬ tors, whom the directors of the Canal Company believe to be thoroughly responsible and abundantly able to finish their con¬ tract within the time set—that is, during the next two seasons. The Canal will be ready for use at the beginning of the season of 1876. It will be seen by the reports at the end of this pamphlet that the earlier surveys and estimates of cost of the canal sug¬ gested a pile revetment the entire length of the canal; but the work which has been done on the canal shows that any such revetment will not be necessary, the banks being firm and not sliding. The Company have made arrangements, however, in their calculations to cover contingencies, and should a revet¬ ment be found necessary on parts of the work to keep the banks from sliding in and filling the canal, they will have funds enough to build it. OF-PICI^L REPORTS AND SURVEYS iturgeon an and an n anal and jharbor. 1 . 874 . REPORT OF A SURVEY FOR A SHIP-CANAL FROM HEAD OF STURGEON BAY, WISCONSIN. United States Engineer’s Office, Chicago, November 29, 1871. General : I have the honor to transmit herewith a report, by Assistant William T. Casgrain of a survey “ for a ship canal from the head of Sturgeon Bay, Wisconsin, on the line now opened across the portage through the timber to the shore of Lake Michigan, with estimates for constructing the same 100 feet wide and 13 feet deep,” called for by the act of Con¬ gress dated March 3, 1871. A very careful and thorough survey of this route was made by Mr. Casgrain, and the report and map were nearly com¬ plete, but these were destroyed by the Chicago tire of October 9 and 10, 1871. Sufficient memoranda, however, were pre¬ served to enable us, by the aid of the lake survey charts and memory, to give the result of the survey for all practical pur¬ poses. The borings which were taken, show no material but what can be removed by dredges. The highest point on the first of the two routes examined is 32 feet, on the second 284 feet, above the lake. The proposed canal, for which estimates are submitted, is 100 feet wide at bottom and 13 feet deep. The slope of the excavation above water is two base to one perpendicular. The sum of $114,000 is estimated for reveting the banks of the canal, which, owing to the character of the material, is necessary to complete the work, but may not be required to the extent of the estimate, nor until after the canal has become navigable. At the lake terminus of the canal, are two piers, extending 4 out to a depth of 18 feet of water, which are necessary to pro¬ tect the channel excavated in the lake. The object of giving the piers the oblique position indicated is that a width of not less than 200 feet between the ends of the piers is necessary for the easy passage of vessels, and if the piers were placed parallel to the angle of the canal, which is only 100 feet wide, a heavy sea would be created at the mouth ; but by giving them the position indicated, the sea will have an opportunity to spread out, so that by the time it reaches the mouth of the canal it will have lost much of its force. ‘The price estimated for dredging is high, but will, it is thought, cover all contin. gencies. Observations were taken to determine the difference of level between the lake and Sturgeon Bay, which was found to vary according to the force and direction of the wind. Strong southerly winds caused a rise in the lake and a fall in the bay. On one occasion, about July 10, the water in the bay fell 3 feet below the lake level, and so remained for about half an hour. A similar phenomenon was observed about this date at Green Bay, and at Du Lutli, Minnesota. Such a variation, however, rarely occurs, and it is seldom more than 6 inches either way. It is possible that at times the current through the canal may be so great as to interfere somewhat with its navigation, but not, it is thought, to an extent rendering guard- gates necessary. The three general items of the estimate are: For excavation from deep water at Sturgeon Bay to lake.$369,300 For piers to protect channel in lake. 116,000 For revetment of banks of canal. 144,000 Total.$629,300 Very respectfully, your obedient servant, D. C. HOUSTON, Major of Engineers. Brigadier-General A. A. Humphreys. Chief of Engineers, Washington , D. C. 0 United States Engineer’s Office, ) Chicago, November 21, 1871. j Major : I have the honor to submit the following report and estimates relating to the survey of the Sturgeon Bay Ship Canal, which survey was made in obedience to your orders of June 18, 1871. Owing to the disastrous conflagrations which visited the city on the 9th of October, when the greater portion of the field notes of the survey were destroyed, the map accompany¬ ing this report is not as complete as it should be. The soundings in Lake Michigan have been compiled from the notes of the United States lake survey, taken in the sum¬ mer of 1867, and reductions made for the comparative stage of water between that period and last summer. The profiles and cross section levels were destroyed, and I am unable to furnish them at the present time.* 1 obtained from the notes of the lake survey the profile of the Portage road, which I have shown to give a general idea of the eleva¬ tion above the water surface of Lake Michigan. Fortunately, I saved the greater part of the estimates submitted in my first report, and I am thus able to furnish a reliable statement. The act of Congress authorizing a survey to be made at that point reads as follows, viz: “ For a ship canal from the head of Sturgeon Bay, Wisconsin, on the line now opened across the Portage through the timber to the shores of Lake Michigan, with estimates for constructing the same, 100 feet wide and 13 feet deep.” In compliance with this law, a thorough survey of the line above described was made. But upon a careful examination of the country south of this line, I became satisfied that a shorter and more direct route could be found, which would re¬ duce the cost of* construction. Accordingly I made a com¬ plete topographical survey of that part of the Portage south of * Since this report was made, complete surveys have been made furnish¬ ing profiles and cross-sections, and every note destroyed by the fire has been restored from examinations. 6 the old line, and from the data obtained, located a line which proves to be some 250 feet shorter and an average of 2.1 feet less cutting than on the old route. The advantages of this route over the old one will be better understood by referring to the map. There will be two angles in the canal on the proposed old route, whereas on the new line we shall have a straight channel through the Portage, on the prolongation of the centre of the head of Sturgeon Bay. This will be particularly advantageous to vessels making the passage, as it will afford them better fa¬ cility to see and pass each other in the canal. Careful borings were made on both routes at every 500 feet, and samples, taken at different depths, showing the character of the soil, was preserved. The samples were lost in the con¬ flagration. However, i have obtained from Mr. W. L. Baby, the foreman of the boring party, some of the notes taken from hiS private diary, which enables me to give a general idea of the character of the soil at each boring station, as is shown on the profile. Each boring was made from ten to twenty feet deeper than the proposed line of the canal, so as to obtain the nature of the soil for the pile revetment. There were reports that the bottom of Lake Michigan, at the Portage, was under¬ laid with a bed of limestone ; careful borings were made, which show the existence of loose stone and boulders, but no rock. STURGEON BAY AND VILLAGE. About half way from the head of Green Ba}^ to its junction •with Lake Michigan, through “ Porte des Mortes,” or “Death’s Door,” is Sturgeon Bay, running in a southeasterly direction. It is about eight miles in length by two in breadth at its mouth, gradually narrowing to about one-quarter of a mile at its head. Its waters are clear, and deep enough to float the largest of our lake crafts. Its shores are occasionally dotted with cot¬ tages and farms, while the rest are thickly wooded with a va¬ riety of timber. The land is undulating, and gently sloping down to the water’s edge. The only marsh and low lands are found at the head of the bay. 7 Oil the north side of the bay, and about five miles from its mouth, on a small promontory, having an elevation of forty or fifty feet above water, is situated the village of Sturgeon Bay. Its population is about: five hundred inhabitants. It has two churches, three steam saw-mills, three hotels, two stores, and a post-office. The manufacturing interests have not been developed as rapidly at this point as on the west shores of Green Bay, for the reason that on the peninsula the pine timber is found only in limited quantities, and we are confined to a narrow belt of land ; but no part of Green Bay presents as great facilities for iron-furnaces and tanneries ; the hard-wood timber, for char¬ coal, and the limestone, for flux, are found in inexhaustible quantities, as well as abundance of hemlock to supply the bark for the tanneries. ADVANTAGES OF THE CANAL. 1. These will consist in avoiding the present dangerous channels through “ Porte des Morts,” or “ Death’s Door,” where many valuable vessels and their cargoes are lost. We find at the entrance to Green Bay by Porte des Morts several reefs and shoals, obstructing the safe navigation of this chan¬ nel, such as the detached reefs between Pilot Island and the main shore, and the reefs southeast of Gravel Island, as also the Whale’s Back, nearly abreast of the Door. In the pas¬ sage north of Pock Island we find two detached reefs in a southeasterly direction, and between it and St. Martin’s Island, though the passage is much wider, two small shoals are found nearly in the center of it. There is a strong current through Death’s Door, setting in or out according to the direction of the wind, and manv valu~ able vessels have been lost in consequence thereof. The coast is rock-bound, and it is almost certain destruction to the craft ' * going ashore. 2. The immense quantity of freight shipped from all points along Green Bay is carried by a fleet of over two hun¬ dred vessels, which would make a total of at least six thou- s sand passages annually to Chicago and other ports on Lake Michigan. 3. To convey some idea of the large fleet of vessels engaged in the Green Bay trade, 1 have kindly been furnished by Mr. S. P. Drew, light-house keeper at Green Island, with a record of the number of vessels which passed the light-house during the following years, viz.: in 1868, 7,338 ; in 1869, 7,347; in 1870, 7,369. 4. The distance from Chicago to Green Bay, Big and Little Suamico, Pensaukee, Oconto, Peshtigo, and Menomonee, will be shortened on each round trip one hundred and flfty miles, or about one-sixth of the entire distance. 5. For Escanaba, where nearly three-fourths of the Lake Superior iron-ore is shipped the Canal wdll be especially use¬ ful. At certain seasons of the year, in the spring and fall, when the weather is too stormy on Lake Michigan, sailing vessels could avail themselves of the Green Bay route, which is comparatively well sheltered, and make the run to Sturgeon Bay, where they could wait for fair weather to resume their journey. 6. In addition to the above advantages, we must also con¬ sider the rapid growth and developments of the resources of the country in and around Green Bay. The late discoveries of iron ore along the Menomonee river and vicinity will soon give an additional impetus to the com¬ merce of Green Bay. 7. The improvement of the Fox and Wisconsin rivers, which, when completed, will make the connecting link between the Mississippi and the lakes, and furnish additional facilities for shipping the produce of Northern Wisconsin and that of the grain-growing States on and beyond the Mississippi. We cannot safely predict what the increase may amount to in the next ten years, but that the commerce will grow, and rapidly, there is no doubt in my mind. During the summer, and while prosecuting the survey, the lion. Joseph Harris, of Sturgeon Bay, through circulars sent to all the manufacturers in Green Bay and vicinity, collected 9 the following statistics of the trade and commerce of Green Ba} 7 for the year 1870 : Lumber, manufactured, feet. 500,000,000 Shingles, manufactured, feet. 900,000,000 Lath, manufactured, pieces. 840,000,000 Pickets, manufactured, pieces. 35,000,000 .Railroad ties, manufactured, feet. 2,500,000 Cedar posts, manufactured, pieces. 1,600,000 Staves, manufactured, pieces. 2,200,000 Telegraph poles, manufactured, pieces. 650,000 Wooden ware, manufactured, pieces. 11,697,000 Evergreens, number. 6,400,000 Cord-wood, cords. 70,000 Tan-bark, cords. 12,000 Flour, barrels. 160,000 Fish, barrels. 40,000 Salt, barrels. 33,000 Wheat, bushels. 340,000 Oats, bushels. 160,000 Hay, tons. 14,000 Pig-iron, tons. 45,000 Iron ore, tons. 630,0()0 The total value of these exports is estimated at $65,000,000, and the value of imports, such as mill supplies and merchan¬ dise, is estimated at $24,000,000. There are over one hundred saw-millfe in operation along the shore of Green Bay, employing about fifteen thousand men, and the capital invested is estimated at $100,000,000. 10 Estimate of cost of constructing a ship-canal between the head of Sturgeon Bay and Lake Michigan on the “ old ro ute ,” as located by J. E. Thompson , civil engineer , in 1867. Piers in Lake Michigan, each 1,300 feet long, 800 feet of pile-pier, 14 feet wide, at $30 per linear foot. 750 feet of crib-pier, 20 feet wide, at $50 per linear foot. 950 feet of crib-pier, 25 feet wide, at $75 per linear foot. 100 feet of crib-pier, 30 feet wide, at $120 per linear foot. 18,500 linear feet pile revetment, at $8 per linear foot. 6,600 linear feet of line, cut and cleared, 600 feet wide, at $2. Wet excavation in cut, 420,000 cubic yards, at 50 cents. Wet excavation in Lake Michigan, 40,000 cubic yards, at 50 cents. Wet excavation in Sturgeon Bay, 50,000 cubic yards, at 40 cents. Dry excavation in cut, 570,000 cubic yards, at 30 cents. $24,000 00 37,500 00 71,250 00 12,000 00 148,000 00 13,200 00 210,000 00 20,000 00 20,000 00 171,000 00 $726,950 00 Total cost 11 Estimate of the cost of constructing a ship-canal from the head of Sturgeon Bay to Lake Michigan on the “ new route ,” as located by William T. Gas grain ^ Assistant United States Engineer , in 1871. Piers on Lake Michigan, each 1,050 feet long, 800 feet of pile-pier, 14 feet wide, at $30 per linear foot. $24,000 00 400 feet crib-pier, 20 feet wide, at $50 per linear foot. 20,000 00 800 feet crib-pier, 25 feet wide, at $75 per linear foot. 60,000 00 100 feet crib-pier, 30 feet wide, at $120 per linear foot. 12,000 00 18,000 linear feet of pile revetment, at $8 per linear foot. 144,000 00 6,400 linear feet of line, cut and cleared, at $2. . 12,800 00 Wet excavation in cut, 380,000 cubic yards, at 50 cents per yard. 190,000 00 Wet excavation in Lake Michigan, 35,000 cubic yards, at 50 cents per yard. 17,500 00 Wet excavation in Sturgeon Bay, 50,000 cubic yards, at 40 cents per yard. 20,000 00 Dry excavation in cut, 430,000 cubic yards, at 30 cents per yard. 129,000 00 Total cost.$629,300 00 The above pier, including engineering, superintendence, and ten per cent, for contingencies. Cost of constructing ship-canal on old route. ... $726,950 00 Cost of constructing ship-canal on new route.... 629,300 00 Difference in favor of new route. $97,650 00 Respectfully submitted. WM. T. CASGRAIN, Assistant United States Engineer. Maj or D. C. Houston, Corgis of Engineers , U S. A ., Chicago , Illinois. 12 Detroit, Michigan, October 28, 1871. Sir : The following summary of operations is respectfully submitted, relating to the survey and explorations of the “ Sturgeon Bay and Lake Michigan Ship-Canal,” to supply, as far as possible, the loss caused by the disastrous fire in Chicago, where it would appear all the maps, notes, specimens of boring, etc., etc., were lost: About the 26th of June, 1871, agreeably to your instruc¬ tions, I commenced, with the aid of two or three men, to con¬ struct a derrick for the use of the boring-rods made in Chicago, and which we had brought with us. The derrick was accordingly constructed, and was composed of three pieces of pine scant¬ ling 18 feet long and 4 inches square, with an inch bolt and nut to keep them together on top, and two sets of braces, 2 by 4 inches scantling, with half-inch bolts and nuts. One set was screwed on the legs of derrick, 18 inches from the ground, and the other set about 10 feet from it. This was not only to strengthen it, but served the good purpose of supporting a movable platform through which the boring-rod was passed, keeping it perpendicular. A windlass of white oak, 8 inches in diameter, was fastened to the derrick with iron straps, ; which could be removed at pleasure, and at either end handles 1-J- inches thick inserted crossways. This windlass was used to draw up the boring-rod as occasion required, and was fur¬ nished with an inch rope and a pair of double blocks. I think it was about the 3d of July that we commenced boring on the “ old cut,” 30 feet from the water’s edge of Sturgeon Bay, and the center of the “cut,” which is 100 feet wide, in flat, swampy ground, at stake 0, and penetrated in one ; day’s boring 51 feet, which proved to be muck and sand, till, reaching the 51st foot, when on drawing up the rod, blue clay was found in the worm of the auger. We then moved 500 feet in line to the next station, borings being made at every 13 500 feet, when we again sunk to 40 feet in sand and fine gravel. At station o, or 1,000, to 42 feet in sand and gravel. At station 4, or 1,500, to 40 feet in sand and gravel. At station 5, or 2,000, to 44 feet in sand and gravel. At station 0, or 2,500, to 40 feet in sand and gravel. At station 7, or 3,000, to 42 feet in sand and gravel. At station S, or 3,500, to 44 feet in sand and gravel. I 0 At station 9, or 4,000, to 40 feet in sand and gravel. At station 10, or 4,500, east side of the Buffalo Ridge; four or five borings were made around this station and from 9 to 20 feet only was reached. The soil was sand, gravel and loose stones ; very hard boring. I At station 11, 42 feet 7 inches were reached, occupying ! tln ' ee da J s excessively hard work, and a very fine sample of red clay w as secured at that depth, the soil above being coarse sand and gravel. At station 12, 40 feet in two hours was reached through fine sand. t At station 13, 15 feet, after several ineffectual attempts to penetrate further. From that point to the lake, from 9 to 20 •feet only were reached at the remaining different stations, and, with the exception of three or four samples of clay, they were all of sand. | In a great measure the defect in the joint of our boring-rod proved a great obstacle to our penetrating deeper on this line, ind which was afterwards remedied on the new one, as will be lereafter explained. A successful boring of 15 feet in depth through sand was nade about 900 feet from the shore, in 15 feet water, and in me of center of u old cut,” and the sample washed out of the vonn of auger in drawing up. liie task of getting the two scows in order and lashed ogether, after being sunk in the lake, requiring extraordinary abor and promptness to seize the favorable moment, is due to I on > 1 may safely say, alone. On August 10, moved to new line, or route, with our two 14 scows lashed together, as on former occasions, and onr derrick astraddle. The scows were firmly anchored to keep them in position, and another successful boring made 14 feet deep through sand, in 15 feet water, about 700 feet from shore, op¬ posite triangulation station K, and in line of center of new route, at that depth, stone and coarse gravel were struck and the rod pulled up, not being able to penetrate further. Second boring on this route, about 50 feet from water’s edge, and immediately below the bank at station K, sunk 16 feet and struck stone, or coarse gravel, and pulled up. Third boring at stake 61, ran down 15 feet and broke our joints; soil coarse gravel and stone. We had been hitherto so much troubled and put to serious inconvenience and ex¬ pense in consequence of this repeated mishap, that we now concluded to do awav with them, so we had two rods of iron c/ ' 16 feet long—same size of rods, 1J inch—welded together, and one of our old joints, with a strong auger, made by the village smith of Sturgeon Bay, welded to it, which answered admirably, and were not afterward troubled with so serious a %j * defect ; our rod was now 36 feet and 4 inches in length, and we had little trouble in carrying it, and raising and letting it fall bv the use of the derrick. Fourth boring, moved derrick between stakes 47 and 48; reached depth of 22 feet in coarse sand and gravel. Fifth boring, at stake 4,000, w T e succeeded in getting down 25 feet; very hard boring; coarse sand and gravel. Sixth boring, at stake 3,000, penetrated to the depth of 30 feet; easier boring; all sand. Seventh boring, at station 2,000, reached a depth of 33 feet in two hours and twenty minutes, easy boring and meeting with no obstructions; all sand. At stake 1,000, reached 25 feet in two hours, and one man could have easily turned the rod, so easy w r as the labor; muck and sand. I have endeavored to embrace the principal features of this interesting operation to the best of my ability, and only I 15 hope they may prove acceptable to the parties interested, and have the honor to remain, Very respectfully, your obedient servant, WILLIAM L. BABY, Having had Charge of Boring Party. William T. Casgrain, Esq., United States Engineer , Chicago , Illinois. REPORT TO GOVERNOR OF WISCONSIN. Green Bay, Wisconsin, ) September 29, 1873. \ To his Excellency, C. C. Washburn, Governor of Wisconsin: Sir —Pursuant to instructions contained in your letter of September 8th, 1873, I have made a careful examination of the Sturgeon Bay Canal. I find that the amount of work orginally to be done, as calculated from surveys made under the direction of the War Department, was as follows : 6,400 lineal feet of line to be grubbed and cleared, 600 feet wide, which I have esti¬ mated to be equal in excavation to. 38,400 Cub. y’ds Excavation in Sturgeon Bay and in Cut.. .. 860,000 “ Fo Caving in of Banks I have allowed. . . .100,000 “ Making the total amount of Excavation originally to be done.998,400 u The above quantities are calculated for a canal with depth of 13 feet, 100 feet wide at the water line, with slopes of 2 base to 1 perpendicular, the water level being taken at the height of low water in 1847, when it was lower than for many previous years and since that time. 16 As prescribed in the law of 1868, the slope to be given the banks was 1J base to one perpendicular, but it was thought best to change the inclination to 2 to 1 to prevent sliding if possible. The amounts of excavation is not materially affected by this change. The following is the work thus far accomplished: 6,400 lineal feet of line grubbed and par¬ tially cleared, 400 feet wide, which I have estimated to be equal in excavation to.. . . 15,000 Cub. y’ds Amount thrown out by dredges..141,000 “ “ Dry Excavation . 99,000 “ Making a total of.255,000 u Leaving 5,400 cubic } T ards over one-quarter of the entire work. The character of the material to be taken out is the same throughout the length and breadth and depth of the canal. An extensive system of deep boring has shown it to be sand extending to a depth of at least 15 feet below the pres¬ ent water-line. The latter statement shows therefore, within very small limits, the proportion of the total work accom¬ plished. The amount of excavation necessary to complete the Canal, with the dimensions prescribed by law (with the exception of the inclination given the banks), would be' 743,400 cubic yards. L would therefore report, that at least one-quarter of the entire work has been done. \ The work thus far has been, in my judgment, performed in a satisfactory manner. The material dredged from below the water line has been removed by scows, a lon^ distance from the line of the canal, and deposited where it will not be liable to interfere with navigation in the future. The material excavated above water has been thrown twenty feet back from the top of the cut on either side, so that in case of sliding, or washing in, of a portion of the banks from heavy rains, the excavated material would not be carried back into the Canal, requiring it to be removed again. The results so far sli >w that of the two miles of Canal to be made, one mile at the western terminus (mainly from the point in Stur¬ geon Bay, where the work first commenced, to the shore line of the Bay) has been so far completed as to afford a depth of eleven feet of water. From the shore line inland, for a distance of nine hundred feet, by wet or dry excavation, a channel has been made, af¬ fording a depth of nine feet. With a tug drawing seven to eight feet, we ran up to, and landed on the dredge, now at work at the head of the cut. At different points across the peninsula, large amounts of material have been taken out and deposited, as mentioned above. One cut, one thousand seven hundred feet long, about mid¬ way between Sturgeon Bay and Lake Michigan, and extend¬ ing through Buffalo Ridge, the highest point on the line, has been made with a width at top sufficient to give the prescribed width of one hundred feet, at the water line. At several places along the line, the banks have given way somewhat, from the action of rains, even at the present slope, proving the good policy of the departure from the first pres¬ cribed plan, which would have made them more precipitous and thus increased the tendency to slide. In my estimate I have not taken into consideration the ex¬ cavation to be made in Lake Michigan, at the Eastern end of the Canal. The general government has authorized, and is now con¬ structing a harbor at this point, under the direction of the Sec¬ retary of War, which when completed will furnish the neces¬ sary outlet into Lake Michigan. Capt. Win. T. Casgrain, an accomplished engineer, has charge of this work as well as that of the Canal Company. I have the honor to be Very Respectfully, Your obedient servant, LEONARD MARTIN, Assistant CL. S. Engineer. 18 APPROVAL OF GOVERNOR OF WISCONSIN. State of Wisconsin, Executive Department. Madison, - ) I, C. C. Washburn, Governor of the State of Wisconsin, do hereby certify that, by the report of the agent appointed by me to inspect the work done on the Sturgeon Bay and Lake Michigan Ship Canal, a copy of which report is hereto attached, it appears that one-fourth of said work has been completed in accordance with the requirements of the acts of Congress ap¬ proved April 10, I860, and of the acts of the Legislature of Wisconsin relating thereto. And I further certify that I approve of the work done, and that in consideration thereof, the Sturgeon Bay and Lake Michigan Ship Canal and Harbor Company is entitled to one-fourth of the lands granted by Congress to aid in the construction of the said Sturgeon Bay and Lake Michigan Ship Canal. In testimony whereof, I have hereunto sub¬ scribed my name, and caused the great seal of the State to be affixed, this 7th day of October, A. D. 1873. By the Governor. C. C. Washburn. John S. Dean, Assistant Secretary of State. Great Seal of the State of Wisconsin REPORT OF SELECT COMMITTEE OF WISCONSIN LEGISLATURE ON STURGEON BAY SHIP CANAL, MADE FEBRUARY 10, 1874. The select committee to which was referred the communi¬ cation of the Secretary of State, with accompanying papers, relative to the Sturgeon Bay and Lake Michigan Canal, re¬ spectfully report: The project of connecting Sturgeon Bay with Lake Michigan by the construction of a ship canal seems to have been agitated 19 for the past twenty years. As the country on the borders of Green Bay (of which Sturgeon Bay is a mere harbor) has been developed, attention has been directed to the necessity of this work, as by its construction the difficulties and dangers of the outlet of Green Bay would be avoided, and a saving of one hundred and fifty miles navigation saved in the transit of ves¬ sels from the ports of the Bay to that of Lake Michigan. As early as 1856, a company was incorporated by the Legislature, with authority to construct this canal, which did no more than organize, make an examination of the route, and subsequently forfeit its charter by failure to comply with its requirements. But the enterprise was not destined to fail with this feeble effort of a few individuals, who perhaps entered into it as a mere speculative, pecuniary venture. In 1864, a new charter was granted and a company organized under it, comprising several gentlemen of wealtli and character, who were largely interested in the lumbering establishments of that part of the State. After a thorough examination and sur¬ vey of the route, to ascertain the feasibility of the project, a grant of land was procured from Congress to aid in construct¬ ing the improvement as one of national importance. It thus appears that the successful accomplishment of tin* enterprise was fully inaugurated. Men of character and means were enlisted in the company and pledged to its suc¬ cess. If this did not furnish a sufficient guarantee of good faith in the undertaking on their part, it may be further stated that they, as owners of a large portion of the fine forests on the western shore of Green Bay, will be directly benefited by the completion of the work by the increased facilities it will afford in reaching the markets of Lake Michigan. The grants of lands from the general government of 200,000 acres is made in terms to the State, and the State is charged with the responsibility of providing that the proceeds of the grants are properly and faithfully applied. In performance of this duty an act was passed in 1873, declaring, in substance, that whenever one-fourth of the canal was constructed, the company was entitled to select and receive title to one-fourth 20 •of the lands. Upon an examination by a competent engineer, under direction of the Governor, made in September last, it appeared that the requisite work was done to, entitle the com¬ pany to select a quantity equal to one-quarter part of the whole grant. Whether the management of the company has been in ac¬ cordance with the law creating it and making the endowments above referred to, seems to be the main question submitted to the committee. To determine it, a full examination of the accounts and vouchers was made, showing the receipts and expenditures for all purposes since the formation of the com¬ pany. The committee were fully satisfied that all the funds heretofore received and disbursed have been judiciously and economically expended and the largest possible amount of work done with the means supplied. The receipts and disbursements may be summarized as follows : Received by contributions of stockholders. $71,171 11 Received from trespasses on lands. 35,531 01 Total. $106,702 12 Expended by paid contractors for work done, en¬ gineering, office rent, etc.$96,251 46 Incidentals, selecting and examining lands, look¬ ing after trespasses, etc. 10,450 66 Total.$106,702 12 The foregoing exhibit covers the whole period since the formation of the company, and therefore embraces items of expense incurred in organization, procuring land grants, etc., which do not belong to the current liabilities, on account of the improvement itself, and yet the percentage of money ac¬ tually expended on the work is more than the usual propor¬ tion in undertakings of this character. In connection with the facts of the well-known character for responsibility and integrity of the gentlemen who compose the company, itshows 21 conclusively, the committee believe, an intention on their part that all the funds necessary for the early completion of the work will be supplied, and that the means placed at their dis¬ posal, whether received from lands or otherwise, will be hon- ' estly and faithfully devoted to this object. The committee are of opinion that the company has main¬ tained the utmost good faith in their operations, that they are justly entitled to the proportion of the land corresponding with the amount of work done, as certified by the Governor, and to the confidence and co-operation of the State authorities in the prosecution of their enterprise. The work itself will add greatlv to the commercial facilities of that region. Dur- ing the past year, more than eight hundred thousand tons were transported to and from the ports in Green Bay south of the Menomonee river. That amount is increasing annually, but the saving each year on that amount, if vessels could pass through the canal instead of the circuitous and dangerous route now in use,.would pay a fair percentage on twice the cost of this work. In view, therefore, of the importance of this enterprise to the commerce of the lakes, of the good faith exhibited in its prosecution, and the well-known character of the gentlemen engaged in it, the committee believe that the completion of the canal will be best secured by the exhibition of full confi¬ dence in its present management on the part of the public authorities of the State. The acknowledgments of the committee are due to Gen. Strong, treasurer, and Capt. Casgrain, engineer, for a full ex¬ pose in minute detail of the affairs of the company, which they deem unnecessary to embody in this report. .Respectfully submitted, D. A. REED, M. L. MARTIN, H. M. ROYCE. 22 FROM THE REPORT OF THE SECRETARY OF WAR TO CONGRESS. See Ex. Doc. 1, Part 2, 43d Congress, 1st Session. 4. Harbor of refuge at the entrance of the Sturgeon Bay Canal .—The appropriation of $40,000 made at the last session of Congress is being expended in the construction of two piers in accordance with the general plan indicated in the annual report from this office for 1872, page 171. It is expected that not less than six hundred feet of each pier will be completed the present season, exhausting the appropriation. It is estimated that the additional sum of $120,000 is re¬ quired to complete these piers and excavate the channel be¬ tween them. Amount appropriated by act of March 3, 1873.. . $40,000 00 Amount expended during the fiscal year ending June 30, 1873. 64 00 Amount available July 1, 1873 . 39,936 00 Amount required for fiscal year ending June 30, 1875 . 60,000 00 (See Appendix B 4.) Appendix B 4. HARBOR OF REFUGE AT THE ENTRANCE OF THE STURGEON BAY CANAL. By the act of Congress approved March 3, 1873, an appro¬ priation of $40,000 was made for this work. In 1872 the canal company commenced work on the canal according to the plan indicated in my report. (See page 171, Report of Chief of Engineers of 1872.) Considerable pro¬ gress has been made, principally in dry cutting—the summit being cut down from twenty-eight feet above the lake to thir¬ teen feet, which is now the highest point on the line of the canai. 23 liy the close of the season it is anticipated that still greater progress will be made. The appropriation of $40,000 is being applied to the con¬ struction of two piers to protect the entrance to the canal on Lake Michigan, according to the general plan indicated in the report above referred to. The piers commence at the shore, each four hundred and twenty-five feet from the axis of the canal, and extend into the lake a distance of about one thou¬ sand two hundred feet, to a depth of eighteen feet of water, and are so located that the extremities of the piers will be two hundred and fifty feet apart. It is estimated that not less than six hundred feet of each pier will be completed this season, perhaps more ; the plan of pile pier being used for the inner portion of work on account of economy and because it is well adapted to the locality.— The remainder of the piers it is proposed to build of cribs filled with stone, provided that the canal is sufficiently ad¬ vanced to provide room for their construction. To complete these piers, and make the required channel between them, will require the sum of $120,000. The sum of $60,000 could be advantageously expended during the next fiscal year. Amount appropriated by act of March 3, 1873. . .$40,000 00 Amount expended during the fiscal year ending June 30, 1873.... 64 00 Amount available July 1, 1873. 39,936 00 Amount required for fiscal year ending June 30, 1875. 60,000-00 24 LETTER FROM THE SECRETARY OF WAR, * Transmitting a report, in answer to a resolution of the House, of December 18, 1878, showing progress of work on harbor of refuge at mouth of Sturgeon Bay and Lake Michigan Ship Canal at close of navigation 1873. February 4, 1874.—Referred to the Committee on Commerce and ordered to be printed. The Secretary of War has the honor to transmit to the House of Representatives, in compliance with House resolu¬ tion of December 18, 1873, a letter of the Chief of Engineers ^ of the 27th instant, enclosing a report and sketch from Major D. C. Houston, Corps of Engineers, showing progress of work on harbor of refuge at month of Sturgeon Ray and Lake Mi chi gan Ship Canal at the close of navigation, IS to. WM. W. BELKNAP, Secretary of War. War Department, January 29, 1874. Office of the Chief of Engineers, Washington, D. C., January, 1874. Sir —1 have to acknowledge the reference to this office for report of the following resolution of the House of Representa¬ tives of December 18, 1873, viz.: u The Secretary of War be and he is hereby instructed to furnish to this House, at as early a day as practicable, a report of the progress and con¬ dition of the work on the harbor of refuge at the mouth of the Sturgeon Bay and Lake Michigan Ship Canal, Wisconsin, at the close of navigation, 1873and beg leave to submit herewith a copy of a report from Major D. C. Houston, Corps of Engineers (with enclosures), which it is believed will furnish the desired information. The resolution of the House of Representatives is herewith respectfully returned. Very respectfully, your obedient servant, A. A. HUMPHREYS, Brigadier-General and Chief of Engineers. Hon. W. W. Belknap, Secretary of War. 25 Jacksonville, Fla., January 14, 1874. General— I have the honor to submit the enclosed report of Captain J. W. Cuyler, Corps of Engineers, showing the progress and condition of the work on the harbor of refuge at the mouth of the Sturgeon Bay Ship-Canal, Wisconsin, called for by resolution of the House of Bepresentatives, Forty-third Congress, first session, dated December, 18, 1873. 1 enclose also a tracing, showing plan of the work, which, with the above-mentioned reports, will furnish the information called for. I am, General, very respectfully, your obedient servant, D. C. HOUSTON, Major Engineers. Brig. Gen. A. A. Humphreys, Chief of Engineers, U. S. AWashington , I). C. Morristown, N. J., January 3, 1874. Sir—I have the honor to make report as follows, relative to “ harbor of refuge,” Sturgeon Bay Canal, Wisconsin, as required by your letter to me of December 27 ultimo: At the close of navigation of 1873, both “ pile-piers,” de¬ signed in the approved jorojet for this harbor, the one on the north and the other on the south side of the mouth of the canal, had been piled and built out for a total length (to each pier) of 762 feet from their starting points, just inside the original shore-line, making a total of 1,524 feet of pier-work constructed at this harbor during the season of 1873. The inner 150 feet of each of these piers consist of the so-called “ slab-pier” construction, a species of work less elaborate and expensive than the regular “ pile-pier,” as shown in the ap¬ proved drawings, but here answering for the in-shore ends of the piers, where the water is shoal. This “ slab-pier ” work ends in each pier at 6-foot water-line, and the balance of each pier, the outer 512 feet, is of the regular “ pile-pier” construe- 26 tion, 14 feet in width, which is also width of “slab-pier” con¬ struction. The outer ends of both piers terminate at the 15-foot curve. Of all this pier-work, the two “slab-piers” have been completed; the two “ pile-piers ” have been com¬ pleted as to the piling, the superstructure, the brush-filling in them, and two-thirds of their stone-filling in the north pier and one-third of same in south pier. There but remains, to make a completion of this whole work for season of 1873, in accordance with the original designs, to complete this stone¬ filling in these two piers, about 100 cords of stone being required to be put into north pier and 200 cords into south, a total of 300 cords of stone-filling, equal to about $3,000 worth of work. I have the honor, sir, to remain, very respectfully, your obedient servant, JAS. W. CUTLER, Capt. Engineers, U. S. A. Maj. D. C. Houston, U. 8. Corps Engineers . GREEN BAY AND STURGEON BAY AND LAKE MICHIGAN SHIP-CANAL. January 23, 1874. Mr. Bradley, from the Committee on the Public Lands submitted the following REPORT: The Committee on the Public Lands, to whom was referred the bill (IT. R. 447) to extend the time for the completion of the Green Bay and Sturgeon Bay and Lake Michigan Ship- Canal, in the State of Wisconsin, beg leave to report: That they have had the same under consideration, and find that it relates to a grant of two hundred thousand acres of land, made by Congress, under date of April 10, 1866, to the State of Wisconsin, to aid in constructing said canal, and a 27 breakwater and harbor at the month of said canal, in Lake Michigan. The lands were, by the terms of the grant, to be selected from the odd-numbered sections nearest to the canal and break¬ water, applicable for this purpose, and to be disposed of by the State authorities ; but, before they were to be disposed of the plans of said breakwater and harbor, and the route of the canal, should be established, and a plan thereof should be tiled in the War Department, and a duplicate of the same tiled in the office of the Commissioner of the General Land-Office. Also, that there should be kept an accurate account of the sales and net proceeds of the lands, and of all expenditures in the con¬ struction, repairs, and operating of said canal, and of the earnings thereof, and should return a statement of the same annually to the Secretary of the Interior. All of these condi¬ tions, your committee find, have been complied with except completing the work in the time limited therefor. That, be¬ ing three years from the passage of the act, expired on the 10th day of April, 1869. . Congress, however, by act approved March 1, 1872, extended tile time for its completion to April 10, 1874. This bill now asks for a farther extension of the time to April 10, 1876. In examining into the case in order to determine as to its merits, the committee find that the location of said canal and plan for its construction have been made by Government en gineers, a report of which we find under date of November 29, 1871, addressed to Brig. Gen. A. A. Humphreys, Chief of Engineers, at Washington, from which it appears that the cost of the work was estimated to be $629,300. In this report we find an estimate of the commerce, from which it appears tli at the value of the products that would pass through tin's canal, when completed, would be $65,000,000, while the imports are estimated at $24,000,000, which must show a very large annual increase from year to year. The construction of this canal will save a distance of one hundred and ninety miles in transport¬ ing all the products of that portion of the Northwest which are tributary to Green Bay that would seek a market at Milwau- 28 kee and Chicago by water communication, which your com¬ mittee would deem a very important item in the interest of cheap transportation, a question which is, at this time, upper¬ most in the minds of the people of the country. Your committee find in the report of the Secretary of War for 1873, on page 198, that there was appropriated by the last Congress $40,000 for the construction of a harbor of refuge m Lake Michigan, at the entrance of this canal, and that nearly all of said appropriation has been expended during the past year. From the report of the assistant L T nited States Engineer in charge of the work on the canal, under date of September 29, 1873, we find that he estimates the work of constructing the canal at least one quarter done. In view of all these facts* and that Congress in the act making the appropriation of lands reserved to the Government the right of use of said canal for all of its vessels, or of any others employed, free from toll; and to the public that it should be and remain a public high- wav, and that after the said State of Wisconsin had been fully reimbursed for the cost of its construction from proceeds of the lands donated, and from tolls collected, or upon the pay¬ ment of any balance by the United States over and above the receipts from sale of lands and tolls collected, then it should be allowed to tax, for the use of said canal, only such tolls as shall be sufficient to pay all necessary expenses for the care, charge, and repair of the same. Your committee would re¬ spectfully recommend that the bill do pass. ' ' . •• '--1 . ' r • S ■: , | - \ - s k‘ r * v;. it 1 : - V .;. ~ . ; . 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