Amount appropriated March 3, 1871, but not yet under

contract...

Amount available July 1, 1871..

$250,000 00

391, 681 59

Amount required for the fiscal year ending June 30, 1873..... SS4, 977 08

The balance of $141,681 59, on hand at the beginning of the present fiscal year, includes $10,978 67, being aggregate amount of percentage retained from payment made to contractors from time to time in accordance with the terms of their contract, and the materials already deliv.... ered (timber for revetment and stone for guard-gate walls) cover some portion of this balance, but are not to be paid for until placed in the work.

No attempt is made to give statistics concerning the importance of this work, as it is so well known. Suffice it to say that nothing can pass, by water, between Lake Superior and the lower lakes without passing through this canal. The commerce interested is the entire traffic by vessels between Lake Superior and the other lakes, and large as it now is, will, as the Northern Pacific and other railroads having a terminus upon Lake Superior are extended, rapidly and greatly increase. In naming an amount to be appropriated at the next session of Congress, I am guided by the estimated cost of the new system of lockage, which is $884,977 08. It is of importance that this entire amount should be appropriated in one item, in order to put the work under one contract. To appropriate it by piecemeal may throw the work into the hands of different contractors, thus securing the most work at the maximum of cost. The appropriation of the whole amount at one time will greatly reduce all incidental expenses and reduce the time before completion to a minimum.

I feel as though I could not press this matter too earnestly; and I further desire to say that I have, in the estimate, left no margin for reduction; even if only $50,000 be taken off, I doubt whether enough would be left to accomplish the object.

All of which is respectfully submitted.

O. M. POE,

Major of Engineers and Brevet Brigadier General, U. S. A.

CUSTOM HOUSE, MARQUETTE, MICHIGAN,
Collector's Office, October 10, 1871.

SIR: In reply to your communication of June 15th, I have the honor to report: 1st. That the total amount of revenue collected in the district of Superior for the fiscal year ending June 30, 1871, was $8,467 43.

2d. The amount of revenue collected at the port of Sault Ste. Marie during the same time was about $3,000.

3d. In reply to your further inquiry as to the amount of commerce and navigation which will be benefited by the proposed improvement of the St. Mary's Canal and River, I respectfully submit herewith two statistical tables as answering your inquiry in two ways: 1st. By exhibiting in Table A the actual tonnage employed in the commerce which passed through the canal for a series of years; 2d. By exhibiting in Table B the two particular interests which, up to the present time, have formed the basis for nearly all the commerce of Lake Superior that passes through the canal, the magnitude of which is shown in Exhibit A.

A reference to Exhibit A will show that the growth of the commerce passing through the canal has been not only rapid but constant. Each year shows a large gain over the previous year. In view of the activity in railroad construction now characterizing lines terminating at the head of Lake Superior, affording to the already settled portions of the Northwest a new and cheaper outlet for its surplus products and opening new territory of the most attractive character, it is fair to presume that the annual increase of the tonnage passing through the canal will for some years, at least, be maintained if not greatly augmented.

Table B also exhibits a marvelous development of the mining industries of Northern Michigan; and in considering this exhibit one should bear in mind a few facts which are not apparent on its face, and to the general observer may be unknown, as, for instance: During the year 1870, nearly one-third of all the iron and three-fourths of all the copper produced in the whole United States was taken from the mines of Lake Superior, the principal commercial outlet for which, is through the canal.

There are more than two hundred blast-furnaces, rolling-mills, and other iron works located in the States of Michigan, Wisconsin, Illinois, Indiana, Ohio, Pennsylvania, and New York, which are dependent, in whole or in part, upon the mines of Lake Superior for their supply of ore. The area of country over which this ore is carried is almost continental in extent, embracing not only all the great bituminous coal fields of the West, but also the anthracite region of the East.

In my opinion a half a million dollars would have been saved to the consumer of iron during the year 1870 upon the single item of lake transportations on iron ore, had the canal permitted the passage, full loaded, of the largest class of vessels navigating the lower lakes.

The report of the superintendent of the canal for four and a half months, two-thirds of the present season, shows an increase of tonnage over same time of 1870 of about 25 per cent., nearly all of which is to be attributed to the new trade brought to the head of the lake by the Lake Superior and Mississippi Railroad and the Northern Pacific. In view of present facts, speculation as to the future trade which is to be poured into Lake Superior by this highway for the world is uncalled for.

That the time has passed when the St. Mary's Falls Canal, as originally constructed, can serve the wants of commerce, is painfully felt by those engaged in navigation. An emergency already exists, and the proposed improvements should be hastened forward to completion at the earliest moment practicable.

Very respectfully, yours,

General O. M. POE,

Detroit, Michigan.

HIRAM A. BURT,

Collector

EXHIBIT A.

Statement of the number of vessels, and their tonnage, passing through the St. Mary's Falls Ship Canal each year from 1865 to 1870, inclusive, and four and a half months of 1871.

*In June, 'of this year, three out of the four shipping docks at Marquette were destroyed by fire cutting off the facilities for shipping ore, and damaging seriously the business of that year. * The increase over the year previous is about 331 per cent.

EXHIBIT B.

Statement of the product of the iron and copper mines of Lake Superior for each year during a period of ten years, from 1861 to 1870, inclusive.

The average annual rate of increase of the iron business for ten years is 45 per cent.
The rate of increase for 1870 over 1869 is 333 per cent.
Estimated product of 1871 1,000,000 tons.

Table showing the aggregate tonnage of ressels and steamers passing St. Mary's Falls Canal for each month from May to September, in 1870 and 1871.

The increase for 1871 is 20,410.65 tons. There is, however, a decrease in the number of vessels, the number locked through in 1870, up to October 12, being 1580, against 1366 for the present year. This comparison shows that the vessels now passing are of a larger class than those heretofore in use for this trade.

UNITED STATES ENGINEER OFFICE,
Detroit, Michigan, August 25, 1871.

GENERAL: By act of Congress approved March 3, 1871, the sum of $10,000 was appropriated "For improvement of Cheboygan Harbor, Michigan," and on the 14th of March the work was assigned to my charge.

At this early date lake navigation had not opened, and nothing more was then done than to ask for maps and reports previously made by other officers, and to write to certain citizens of Cheboygan for the purpose of getting some expression of opinion as to the best manner of expending a sum so utterly inadequate to the making of any valuable improvement.

After due consideration I submitted the following project.

DETROIT, MICHIGAN, April 10, 1871.

SIR: The appropriation of $10,000 made by act of Congress, approved March, 3, 1871, "For improvement of Cheboygan Harbor, Michigan," being utterly inadequate to make the improvements suggested in the report of Captain F. U. Farquhar, corps of engineers, dated December, 1870, and which I approved, I propose that it be expended toward that project by dredging within the limits prescribed by Captain Farquhar for the east and west piers as follows:

"Make the west line of the cutting parallel with the west line of the west pier, and twenty-one feet from it."

"Make the width of the cutting at top, in shoalest water 100 feet wide." "Make the depth 9 feet at stage of survey of August, 1870."

"Make the bottom of the cut 50 feet wide throughout, sloping the sides to conform to these dimensions.

"Begin the dredging in 9 feet water and work inward.”

And I submit herewith the form of an advertisement, inviting proposals for the work, which if approved, I have to request may be forwarded to the chief clerk of the War Department for appropriate action.

I propose to fill up this form so as to give full thirty days' notice of the time at which bids will be opened.

Very respectfully, your obedient servant,

Brigadier General A. A. HUMPHREYS,

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

O. M. POE, Major of Engineers.

This project was approved by the Chief of Engineers on the 14th of April, and proposals for the work were invited, the bids to be opened on the 24th of May.

The following is an abstract of the bids opened on that day together with correspondence relating thereto.

DETROIT, MICHIGAN, May 26, 1871. GENERAL: I have the honor to transmit herewith an abstract of proposals for dredging at the harbor of Cheboygan, Michigan, opened at 3 o'clock p. m. on Wednesday, the 24th instant, in accordance with advertisement dated April 20, 1871.

I also inclose a copy of correspondence with Mr. Charles Fitzsimons, relating to his proposal, which did not specify whether the price named by him was for material measured in scows or in bank. You will perceive that he leaves it discretionary with me to determine the manner in which the material shall be measured; and I have accordingly entered his bid in the abstract as being per cubic yard measured in bank. His proposal being the lowest, I therefore respectfully recommend its acceptance, and that I be authorized to enter into a contract with him for the execution of the work. Very respectfully,

O. M. POE,

Major of Engineers and Brevet Brigadier General, U. §. A. Brigadier General A. A. HUMPHREYS, Chief of Engineers, U. S. A., Washington, D. C.