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and the act supplementary thereto, make it the duty of the Trustees
to adopt and put in execution such plans and measures as they shall
deem most expedient for the prosecution and completion of the
canal to Evansville ; and it is also made their duty to apply the toils
snd revenues of the canal, and the proceeds of the canal iiands ('sold
and unsoM) after defraying all needful and proper expenditures for
expenses, repairs and other causes, including the payment of the
interest on the cash advance of the Bondholders for the completion
of the canal,) *Mn payment of the work, labor, and materials, or
contracts for the supply of work, labor or materials, to be done and
furnished in and about the further prosecution and construction of
the said canal and works, until the same shall have been fully tsotti-

Iyleted to Byansvilie, as the moneys to be paid for the same ihall
irom time to time become doe and payable.^
The only means prodded by the law, for the oomptalloii of llie

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canal to Evansville, and subject to the power or the Trustees for
that purpose, are, the advaoce of $800,000, made by the snbscribiog
bondholders, the proceeds of the canal Jands, and the tolls and reve-
nues of the canal, after iii'st paying all expenses of the Trust, and
repairs and expenses of the canal, and the interest on the advance
as above specified.

The Trustees have no power, in case of deficiency of means to
finish the canal, to make any further requisitions upon the bond-
kolders, (beyond the advance above named,) neither are the bond-
holders required to make any such further advance. The Trustees
calculated that their cash means* including the receipts for the year
1851 from lands and tolls, would cover the contracts for caaal work
as far south as the Petersburgh Division, inclusive; but would not
justify them in making further contracts, on the usual terms of cash
payment, for the Evansville Division. Under these circumstances,
and to ensure the completion of the canal at the earliest practicable
petiod, and within the time limited by the law, it became necessary,
in the letting of the Evansville Division, to postpone the payments
to the contractors to such times as that the accruing receipt from
sales of land and tolls from the canal would supply the means to
meet them. It is, therefore, stipulated in the contract, that the obli-
gations of the Trustees, to be issued from time to time as the woik
is done, to the contractors, shall be made payable in specified sums*
on the first day^ of January in each of the years 1S53, 1854, 1855,
and 1856, respectively. It is also stipulated that all the accruii^
means of the Trusteess, (after retaining enough to cover the cost of
finishing the other portions of the work previously let, the interest
«n the advance, and all repairs and expenses of every kind,) shall, as
iiBuit as realized, be applied to the payment of such obligations,
whether they be due or not. Interest is to be allowed on the esti-
mates for work done, from the time they are made, (that is, eveiy
sixty days) at the rate of six per cent., to be paid semi-annuaUy^ and
a sum not exceeding three hundred and fifty thousand dollars is to
be made payable in the city of New York, at the expense of the
contractors, who are to pay the exchange; the remainder will be
paid at the office of the Trustees at Terre Haute. The contracton
wiU pay cash to laborers under them.

Considering the ccmtingent and uncertain character of means on
which the Trustees must rely, as provided in the a<^, they deemed
it their duty to secure the longest credit for the payments to be made
on the Evansville Division which they could, compatible with tbe
interest of the Trust, and without enhancing the cost of the work
materially above a cash standard*

The circumstances of the country, and the easy condiUoa of the

aaoney market at the time of the letting, and the uaquftstionaUe

character of the security they bad toofier, favored this arrangemeni;

ind it is believed that the increasing means of the Trust will not

' only be i»f le to meet the payments, according to the pn>visioes (j(

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the coftimet, as they thatl fall due, hot the Trastees will expect to
be able, from those means, to anticipate the payments.

Thus the final completion, of the canal to fSvansviile, by the fall
of 1853, Is provided for and placed beyond a doubu

The period fixed in the contract, for the completion of the EmM^
ville Division, had regard to the heavy character of the work and
the allowance which should be made for that; and also, to the time
fixed by the hiw within which the Trusees were required to finish ft;
making just allowance, as provided in the act, for delays and hin-
drances which have occurred in the prosecution of the work from
the time It was commenced in the fall of 1847, by re;i8on of provK
deatial and other causes not within tlie control of the Trustees, and
which have been from time to time stated and fully explained in the
auQual reports of the Trustees to the General Assembly, and in th^
accompanying reports of the Chief and Resident Engineers. The
Trustees have been careful to prosecute the work in accordance with
the provisions of the acts in this respect, and so as to ensure its final
completion within the specified time ; and this is considered as hai^
ing been attained by the contract now made for the completion of
the Evansville Division.

From the preceding statements respecting the canal work and the
liabilities of the Trust for existing contracts, it will be seen that on
the three upper divisions, viz: the Newbury, Maysville, and Peters-
burg divisions, there has been paid, in the aggregate, the sum of
$398,033 86, up to the first day of December, 1850;' and that the
farther sum of (|»385,841 66, remained at that date, to be paid to
the contractors, to finish these divisions according to the contract
prices. If to this sum we add the amount to be paid to the contrac-
tors for the Evansville Division, (being the probable cost of that
Division under the contract) estimated at $561,341 59, (no part of
which, however, fails due .till January, 1853) it gives a total of $847,-
183 25 as the outstanding liabilities of the Trustees on the first day
of December, (850, for canal work. This amount will be reduced
by the payment of the December estimate in the sum of nearly
seventy thousand dollars, leaving the amount at the close of the year
of outstanding liabilities, under contracts for canal work, at about
fm,18S 95.

To this sum is to be added any sums to be paid for damages, for
ri^ht of way, or other causes, during the period of construction, add
which do not enter into contracts for the work.

Having finished two important divisions of the canal, and nearly
finished three other divisions, and having contracted for the work on
the only remaining division, we are able now to approximate to the
final cost of the entire work, when finished to Evansville, and to
compare that with the estimates which were made of the probable
^ost of the same work shortly previous to its commencement

Prom the statements exhibited in the report of the Chief Bnnneer,
itwill be seen, that the final cost is placed at f2»Ol2l,065 17; and

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thtt, by Ihe eitimates of c<Mt which were made in 1845» by Messn.
Pauntleroy and Ball* it was placed at $1,910»371.

It is therefore probable that the final cost may exceed the estimates
in the sum of nearly $1009000. When the magnitude of the work
is considered, together with the great advance in the price of cook
iBOA labor, as exhibited in the reports, within the last three years,
dating from about the time the work was commenced, and the lai^e
aniount added to the cost by reason of the damage to the work
occasioned by the exti'aordinary floods of the winter of 1848, as ex-
hibited in the last annual report, it is believed that so near an ap-
proximation of the preliminary estimates to the actual results, has
but few examples ; and it demonstrates the intelligence and accuracy
with which the estimates were originally made* as well as the energy ^
fidelity, and economy with which the work has been prosecuted.

It is proper to state, in this connection, that, in the estimates of
final cost, and also in the original estimates, the payments for dam-
ages done to property^ and for the right of way, have not been inclu-


The Trustees have sold during the year ending 30th November,
1850, of the lands lyine in the Vincennes District, 25,468,22 acres,
for the sum of $52,9S3 76. This shows an increase of sales of
2,564,08 acres, and $6,402 31 over the receipts for last year; and
an examination of the returns exhibits the gratifying fact, that a
much larger proportion of the sales, than heretofore, is made of
lands lying south of White River — a portion of the State where few
public improvements have been made, and which, notwithstanding
its many natural advantages, has for many years attracted but little

In ccmsequence of the many discrepancies constantly occunriog
between the books of the Land Office at Washington and those of
the Register at Vincennes, the Trustees procured a certified list from
the General Land Ofiice, of all the tracts marked upon their books
as Canal Lands, and in July last caused a comparison to be made at
Vincennes, and the books of the Register and their own to be cor-
rected conibrmably to this list. On this examination it was discov.
ered that there was a balance of lands yet to be selected in this
district, to make up the total quantity of half the lands remaining
unsold at the date of the Act of Congress of 3d March, 1845, of
6,598.76 acres ; which quantity the Trustees will proceed to have
selected early in the year 1851. When these lands shall have been
located, the grant, as originally made, will be for 796,672.48 acres;
of which there has been sold by the Trustees 116,779.50 acres;
leaving a balance of 679,892.58 acres, which, at the valuation plaoed
upon th?m, are worth $l,3d2,051 62.

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At the Land Ofice at Loganaport the total receipts, on account of
ands west of Tippecanoe, for the year ending 30th November, have.
>een $30,923 49; of which $21,675 15 has been received on ac-|
:ount of new sales. The number of acres sold during this period is
)3,985.32, most of which was sold on a credit. Since the first of
October, the Trustees have directed that these lands shall be sold-
exclusively for cash; and it is to be hoped that the next year will
ihovf a considerable increase in the receipts from this source. Of.
the amount received, as above stated, the sum of $4,885 was in scrip.

On account of lands East of Tippecanoe, the receipts for the year
lave been $31,900 17; of which was in scrip, of principal, $5,698 79,
ind interest, $1311 44.

Of the land east and west of Tippecanoe, including the new se*
lections, there are now remaining unsold,

Elasi of Tippecanoe, 2,562.05 acres, valued at $7,342 63

West of Tippecanoe, 49,509.07 acres, valued at 89,032 25

New selections, 93,486.90 acres, valued at 140,049 39

Total $236,424 27

The amount due on lands sold, East of

Tippecanoe, most of which is to be

paid by October, 1852, 0/ principal

and interest, is $230,093 73

Amount due on lands sold west of Tip-

pecanocy including new selections,* * 90,460 97

320,654 70

Making the total value of lands, sold and unsold,- • • . $556,978 97,
Value of lands unsold in the Vincennes District,* • • • 1>392/)51 62

Total value of both Land Offices, $1,949,030 59

Appended to this report are tabular statements, showing the re-
ceipts for each month of the pa^t year at Washington, the number
of acres of each class sold, and the amount of purchase money;
also statements of the receipts east and west of Tippecanoe, on ac*
count of sales, partial and final payments, interest and penalties.

The Trustees have redeemed, of the scrip issued for lands east of
Tippecanoe, since the commencement oi the Trust, the sum of
$82,988 74; being considerably more than the amount reported in
any of the statements heretofore rendered by the Auditor to the
General Assembly or to the Ti*ustees ; and exceeding, by the sum of
$2,751 56, the amount fixed upon as outstanding, at the settlement
between the Auditor and the Resident Trustee, in May, ^1849, as
authorized by a Joint Resolution of the General Assembly/

Appended to this report, the Trustees submit a statement relative
to the scrip east and west of Tippecanoe, showing the amounts re*

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deemed ap to the first of December, 18S0: When the amotmt of s«rip
outstanding shall have been finally redeemed, the Tru^ees will ex-
hibit a statement to the General Assembly, In view of an equitaUe
adjustment of the account between the State and the Trust.

Prom the preceeding statements it will be seen that the sales of
knd, both at the Washington and Logansport offices, have been
quite satisfactory ; and it is to be hoped that no diminution will oc-
cur for the next year. The lands at the Washington office have been
sold exclusively for cash, those entitled to pre-emptions having availed
themselves of it during the period allowed by law. At the Logans-

Sbrt office 24,658,39 acres were entered on a credit before the first
ay of October, 1850, after which date cash sales only were allowed.
Tlie large reduction made by the Trustees in the price of those lands
in 1847, and the belief that all parties would be gainers by cash sales^
Induced the Board, at its June session, 1850, to direct that, after the
first of October, no credit would be allowed on entries. Four
months public notice was given of this rule of the Board, to aflTord
all persons interested ample time to avail themselves of the credit
system, if it should be their wish to do so.

Many of the new lands selected for the State In 1848 and 1849
were occupied by persons whose pi^-emptions under the laws of
Congress had expired, and their improvements were subject to be
swept from them at any moment by cash purchasers. A large ma-
jority of these settlers were unable to pay for their lands, and hav-
ing already become attached to their homes, and desiring to hold
them, the State Trustee (Mr. Puett) selected these lands for the use
of the canal, with an understanding that the occupants should be
entitled to enter them at the Logansport Land Office, rating at $1 30
to $1 50 per acre, and that a reasonable credit should be extended
lo them on the same. This arrangement was approved by the Board,
and has been faithfully redeemed, so far as the lands have been ap-

flied for by the occupants, and the term of four years from March,
850, allowed for final payment, being one fourth each year until
the entire sum is discharged. The quantity secured in this way to
actual settlers is about 1^,000 acres.

The canal lands selected in the years 1848 and 1849, under the
direction of the State Trustee, heretofore referred to, were brought
into market on the 39th of May last, at Logansport, and were offered
at public sale on that day, at the appraisement, after proper public
notice in some ten or twelve newspapers published in this and
the adjoining States. From various causes, the sales made on that
day were limited and few, and but a small po''tion of those lands
were sold. The Trustees, referring to the practice of the Slate,
deemed it proper to offer these lands at public auction, reservinc
from sale^only those tracts on which improvement or settlement had
beeen made prior to their selection bv the State Trustee. These
lands were immediately subjected to private entry at the Land Office

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t Ix^aFtisporf, at (niees^Yimgitfg fitmi $1 '90 to f9' per acre, and a
rge quanlity of the lands have since been taken up at private sale.
White referring to the.<e landi^i it is proper to remark that some duties
lecially assigned to the State Trustee by the Board, in regard to
lem, have been omitted; which oBnissian was caused by sickness of
lat officer and his family; but those duties will receive attention at
ie earliest practicable moment* It is proper to state, in this connec*
on, hoivever, that no public or private injury could possibly result
'onn thi^i delay* and. that he is fully aathorized.to arrange tliem so ^'
> prevent annoyance to the parties interested.

LiO«»king to the condition of the unfinished portion of the canal,
dere 1:5 everything to encourage its most ardent friends. The period
i near at hand when the actual accomplishment of the work will-
*e aonounced, and when the toil and effort of its early advocates
viU have a rich reward. This toil and this effort have been put
brth to accomplish an enterprise of vast magnitude, in which the
M^mmercial, agricultural and social interests of the people of Indiaoa
ire deeply involved. The Wabash and Erie Canal is the longest
work of the kind ever undertaken by any State of the American
Union; and will be, when completed, the longest continuous artifi-
sial channel of communication on the European or Ameriean conti-
nents. It passes through a country of unrivalled productiveness in
the substantial articles of human foodi and capable of supplying a
dense and active population. What it is, we know — ^^wbat it will be,
those who succeed us only can realize.

Since the Trustees took possession of the canal, in 1847, as agents
of the State and her creditors, it has been their aim to prosecute the
work with energy, and to give their best efforts to its completion.
Laboring to meet the reasonable and just expectations of both par-
ties to the arrangement of the State Debt, they have constantly
kept in view the true spirit and meaning of the acts of 1846 and
1847, and have endeavored to give to them a just and liberal inter-
pretation, and to carry them into effect as diligently as the means
at their disposal would permit. In prosecuting an undertaking of
such magnitude, questions will necessarily arise at almost every step,
requiring thorough and deliberate investigation, and which, from their
very nature, are of slow decision. If complaints do arise from this
cause, it should not be wondered at, when the large interests committed
to the Trustees, and the number of persons affected by them, are
considered and comprehended. The unfinished portion of the canal
must necessarily occupy a large share of their care and attention,
and employ all their means. When the work shall have been finally
completed, and these interests become less diversified, every just
complaint will be met and considered with the utmost promptitude.

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The Trustees ai^o4 hereto a statcineDt of their receipts and dis-
bursements during the year ending on the first day of Deeeinber«
instant ; also a statement of the same from tiie commencement of
the Trust:

The balance on hand on the first of December,

1849, was, $8^,317 €9

Add to this the amount received during the year, 288,348 43

Making, $670,066 12

The amount paid out during the year, is, 501,557 47

Leaving a balance on hand on the first day of

December, 1850, of »169,108 65

Of which, the sum of $102,839 08, is on deposit in the city of
New York, with the Ohio Life Insurance aud Trust Company and
other institutions.

Ail which is respectfully submitted :

CHARLES BUTLER, ) r„.e/P^* or n^ W
A. M. PUETT, f IlTi ri^

TH08. DOWLING, ) """^ ^' ^^'^•
Tbbrjb Havtk, Dbccmbbr 26, 1850.

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Ofpicb of Chief Enoinrbh, )

Tbrre Haittb,Dec.4, 1850. \

the Board of Trustees Wabaah and Erie Canal :

GsNTi^BMEif ; I have the honor to submit the following statement
regard to the present condition of the Canal, finished and unfinish-
U and the operations thereon during the season now brought to a


An early opening of navigation in the Spring has been considered
nportant, with reference to the trade between Cincinnati and the
Vabash Valley. The re-building of the several wot>den locks and
ther structures which were in progress during the last winter, were
Derefore pressed as rapidly as the severity of the season would per-
Ht, and the usual cleaning out of the Canal was commenced as ear-
f as the hard freezing would allow. The character of the weather
uring the latter part of winter and the thickness of the ice which
lay have formed in the Canal, must however influence materially
he time of opening, notwithstanding the most efficient effort to con-
rol it. On the 18th of March the navigation was opened from the
kate Line to Lafayette. But the advantages of a communication
irith Cincinnati were deferred to a later period, by breaches and
»lher hindering causes on the Miami Canal. On the 1st of April the
vanal south of Lafayette was filled and the navigation opened to the
Galley below. As a matter for future reference, connected with this
'ubject,a statement is hereto appended, marked A., showing the time
>f the opening and closing of navigation during each year since 1839.
A few days after the £ite of the last annual report, the masonry
>f tlie west abutment of the St* Mary's Aqueduct gave way, leaving

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only the wing walls standing, between which the whole volume of
water contained in the Canal passed with destructive violence into
the river, carrying out some six or eight thousand yards of embank*
ment. Fortunately, sufficient masonry remained to sustain, with but
little injury, the arches and truss work which supports the Trunk.
The disastrous consequences of the breach Wjere further alleviated
from the fact that its occurrence was after the close of navigation.
From the difficulty of procuring stone suitable for good masonry du-
ring the suspension of navigation, and the necessity for promptness
in the repaii-s, to ovoid further damage, it was deemed judicious to
replace the portion of the abutment carried out, with a timber crib
filled with rubble stone. Situated as it is, immediately, under the
wastage of the trunk, this timber will last for many years, and prob-
ably as long as the stone in adjoining parts of the structure, la the
temporary absence, on other duties, of both the Superintendent of
this District and myself, the charge of repairing the abutment was
confided to P. Hoagland, Esq., of Fort Wayne, by whom the work
was directed with skill and prosecuted with great energy. The en-
tire cost was near $4,000

The passing out of the ice caused some damage to the bridge at
Oarrollon, over the Wabash river, on which the towing-path is cross-
ed from the north to the south side. The stronger ice formed in the
foot of the dam is found very frequently to arrest the floating masses
which come down that stream, filling the entire channel, and forming
what is called an ice-goi^. Last winter the river bed was thus filled
for 5 or 6 miles above the bridge. When this body of ice gave way,
through the influence of a subsequent thaw, its momentum was suffi-
cient to remove one of the stone piers from the timber foundation on
which it was built, depositing the entire mass of masonry in the
deep water below. The superstructure retained its position with
but little injury, sinking only 18 inches at this pier, although the dis-
tance between supports was thus suddenly increased to !M0 feet ia*
stead of 100 feet, as originally built. The pier has been rebuilt nitli
stone masonry, the superstructure raised and repaired, and a laige
amount of protection stone placed around this and the other piers to
guard against future injury. The cost of this repair is about

With these exceptions, I have the satisfaction of re|iorting a re>
markable exemption from casualties of this kind. Between the
State Line and Coal Creek, 189 miles, no interruptions to navigatiofi
occurred worthy of note between the opening in March and the 31st
of November. The largest breach during this period occurred two
miles north of Lafayette, in the month of October, and this stopped
navigation less than two days, and its repair cost less than two hund-
red dollars. On the newly and exposed Division of the Canal be-
tween Coal Creek and Terre Haute, several large breaches occurred
during the early part of the season. Prom Terre Haute to Polnl
Commerce no breaches have occurred, although the water was boC
recently introduced and the banks not fully settled.

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