REPORT OF THE CHIEF OF ENGINEERS.

I am confident that if the money could have been given me under our system of appropriations for public works as I called for it, so that I could have carried on the work in a more business-like manner, it could have been done for at least $100,000 less, even though I was compelled to alter the dimensions of the side wall, and thus create an additional expense of $100,000, not contemplated in my original estimate. A large portion of the amount would have been saved of contingent For this reason I sincerely hope that the whole of the expenses alone. $300,000 yet required to complete this work will be appropriated at once. The work still to be done should be completed as soon as possible. The entrance to the enlarged canal should be proportionally enlarged. Hence the wall on the Louisville side at the head of the canal, and the rock. excavation inside of the apron-dam, should be completed. The walls. should be carried up to their full height, so as to insure their stability against the great pressure they must bear, and to guard them against damage from the weather which is likely to result in the absence of coping. The banks should be graded immediately, for their slopes were necessarily made very steep to enable the money that was available last year to cover the work of widening the prism. They will consequently bring a much larger pressure to bear on the walls, and will certainly cave in more or less after high stages of the water. The dam should be completed as soon as possible, in order to give the increased depth of water in the canal which it will produce, and to save the rent of the lot on which the lumber is stored and the house in which the iron is stored. This work is located in the third collection district of Kentucky. The nearest port of entry is Louisville, Kentucky.

The amount of revenue collected at this port of entry during the fiscal year ending June 30, 1871, was $131,810 92.

The commerce and navigation of the Mississippi River and all its branches would be benefited by the completion of this work.

Abstract H (herewith annexed) shows the names of the persons to whom contracts have been awarded.

That portion of this report wherein I have stated what I have done, explains fully the steps I have taken to prosecute the work.

The amount of cash received for this work during the fiscal year ending June 30, 1871, is $353,200. The amount expended during the same period was $258,830 23.

The amount of appropriation available June 30, 1871, was $450,000. The amount required for the fiscal year ending June 30, 1873, is $300,000.

I do not propose to make any further alterations in the plans heretofore reported.

I consider it my duty to reproduce here the following extract from my last annual report:

In conclusion, I feel it my duty again to call the attention of the authorities to their duty in relation to this work. Every day forces more and more upon me that the Government is in honor bound immediately to assume charge of this canal. The first set of bonds, amounting to $370,000, which the Louisville and Portland Canal Company issued, in order to enable them to enlarge this canal, and build the branch and new locks, are due next January. The company will pay them off on maturity, with the assets in their hands.

The debt that then will rest upon the canal is as follows, viz:

399 bonds, due in 1876..

398 bonds, due in 1881.

400 bonds, due in 1886.

$399,000 00 398, 000 00 400, 000 00

-

1, 197, 000 00

These bonds bear a 6 per cent. currency interest.

By assuming these bonds and purchasing the five shares of stock (each at $100) held by the five directors of the company, the Government gets a piece of property worth at least $3,000,000, and by then converting it into a free canal, (that is, charging only toll enough to pay running expenses and repairs,) it will do an act of very tardy justice to at least one-half of its population, all interested in the navigation of this river, and from whom already nearly $5,000 of cash money has been unjustly taken in the way of tolls, to enable them to make use of this national highway.

I will not repeat the facts which many others and I have already stated, to prove that this is the duty of the Government, but will simply refer to the various printed public documents bearing upon the subject, and, as one of the servants of the Government, earnestly invoke its attention to the facts therein stated.

The company paid off the first set of bonds at maturity.
I am, sir, very respectfully, your obedient servent,
G. WEITZEL,

Brigadier General A. A. HUMPHREYS,

Major of Engineers.

Chief of Engineers, U. S. A., Washington, D. C.

B.-Abstract of bids received by Major G. Weitzel, Corps of Engineers, for constructing new retaining-walls and excavations in the Louisville and Portland Canal, &c., and new branch of the same. Letting, April 24, 1871.

Abstract of bids received by Major G. Weitzel, Corps of Engineers, for certain earth and rock excavation in the new branch of the Louisville and Portland Canal. Letting, May 1, 1871.

Abstract of bids received by Major G. Weitzel, Corps of Engineers, for moving the outer protection-wall of the Louisville and Portland Canal, at and above the railroad bridge. Letting, May 1, 1871.