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the greater part of the expenses now chargeable to the canal which can be done without detriment and organize the future operations on a more economical basis.

The present years expense for commissioners and engineers amount to $6,200, without there having been expended one dollar of public funds for the promotion of the canal. The only official duties which have been performed by the commissioners, being to dispose of the occupied lands, the receipts from which are understood to be about $13.000 and the only professional duties discharged by the engineer being to express his opinion in regard to the location of the canal line, and its cost of construction.

The location of the canal was completed in April last and a plat and profile immediately prepared by the Company's Engineer, Mr. Lapham and forwarded to the Governor and to the Commissioner of the General Land Office, from which the canal lands were set off and designated preparatory to a sale thereof by the canal commissioners. In June a letting of jobs took place under the direction of the company, at which several sections of the canal were put under contract. One of the contractors Mr. Pettibone has commenced operations, and has notified the board of directors that he is willing to continue his operations through the winter, on a portion of the work which can be done with much better effect at that season than any other, and that he will advance his own means for that purpose, to be renumerated whenever the company shall obtain funds to meet it, or whenever a loan shall be obtained by the Territory applicated to that purpose. These jobs have bene let on favorable terms, and we feel a confidence in their completion within a year or eighteen months, so far as to make the water power at this place available, even if the times remain unfavorable for a loan. This water power being improved