there might be left of the first allotment, after the upper dam was built, in the enlargement of the Louisville and Portland Canal. I had already come to the conclusion, long before receiving this authority, and I was sustained in my conclusions by the great experience of the directors of the Louisville and Portland Canal, that the most important thing was, first to enlarge and improve the entrance to the head of the canal as far as the upper guard gates, and whatever balance there might then be left to employ in opening the new locks into the main trunk of the canal. It happens every year at certain stages of the river, that, boats in attempting to enter the canal from above are drawn on the rocks. To avoid this to a certain extent, the company some years since constructed an apron dam about 630 feet long, commencing at the head of the outside wall of the canal and inclining northwardly. (See sheet 1, survey for a ship canal around Falls of the Ohio, on file in your office.) This dam I propose to continue in its present direction about 1,200 feet, and to raise it, throughout its whole length, about two feet, but diminishing its width to only ten feet. All the rock inside of this dam shall be removed, so that nowhere shall there be less than six feet of water when the dam across the river is completed. On the inner, or Kentucky, bank of the canal, I propose to build a substantial retaining wall, from the guard gates up to about Eighth street, Louisville, Kentucky, and on the outer bank a similar wall, from the upper guard gates to the pier head at the entrance. I transmit herewith a sketch showing the proposed work, as stated above. Complete drawings of the whole work will be transmitted as soon as they can be completed. In order to avoid any possible damage to boats entering the canal, from striking these stone retaining walls, I propose to suspend wooden fenders from their tops, at proper intervals. I am told that I may expect some difficulty in getting a foundation for the wall on the inner or Kentucky bank, and will therefore, as soon as the stage of the water permits, make the necessary borings and examinations. As soon as I can ascertain with some degree of certainty what the above work at the head of the canal will cost, I will immediately take steps to expend the balance in prosecuting the excavation of the branch from the new locks to the main trunk. The total amounts required for the completion of this work, as already reported in my last annual report on the survey for ship canal around the Falls of the Ohio, are as follows, viz: For Louisville and Portland Canal extension Total.. Total already appropriated.. Total still to be appropriated.... $933,500 00 310, 000 00 1,243, 500 00 265, 000 00 978, 500 00 Of this amount about $450,000 could, in addition to the amount now on hand, be profitably expended during the fiscal year ending June 30, 1871. This work is located in the third collection district of Kentucky. The amount of revenue collected at this port of entry, during the fiscal year ending June 30, 1869, was $154,113 40. The commerce and navigation of the Mississippi River and all of its branches would be benefited by the completion of this work. I have taken the following steps to carry on this work during the coming season, viz: I have contracted for the entire work and material required to construct the dam across the Ohio River, along the crest of the falls, in front of Louisville, Kentucky. I have purchased all the lumber, timber, and iron, and have made agreements for the work to be done in extending and raising the apron dam at the head of the canal as above stated. I have advertised for bids for the rock excavation required inside this dam, as above stated, and I will commence work on the walls from the upper guard gates, upward, as above stated, as soon as I can possibly do so intelligently. Abstract A shows the bids received for lumber and timber for dam. Abstract B shows the bids received for iron bolts, spikes, and wedges for dam. Abstract C shows the bids on the two different occasions for work on dam. Abstract D shows the name of the parties to whom the different contracts were awarded. All of the above abstracts are hereto annexed. The amount of cash received for this work during the fiscal The amount expended during the same period is. All of which is respectfully submitted. $40,000 00 26, 054 47 225, 000 00 450, 000 00 G. WEITZEL, Major Corps of Engineers, Bvt. Maj. Gen. U. S. A. Bvt. Maj. Gen. A. A. HUMPHREYS, Office of Chief of Engineers, Washington, D. C. A.-Abstract of bids for furnishing 636,000 feet, board measure, of white oak lumber and timber for dam at the Falls of the Ohio, opened by Brevet Major General G. Weitzel, major Corps of Engineers, on January 25, 1869, at 12 m. Name and residence of bidders. Merwin Prindle, Madison, Ind.. S. and J. V. Johnston, Henry County, Ky Respectfully submitted. Major Corps of Engineers, Brevet Major General U. S. A. B.-Abstract of bids for furnishing iron bolts, spikes, and wedges, to be used in the construction of a dam at the crest of the Falls of the Ohio, opened March 17, 1869, at 12 m., by Brevet Major General G. Weitzel, major Corps of Engineers. Name and residence of bidders. Lewis, Oliver & Phillips, Pittsburg, Pa.. William B. Scaife, Pittsburg, Pa.. Edward Kaylor, Pittsburg, Pa. Everson, Preston & Co., Pittsburg, Pa.. Miami Machine Works, Cincinnati, Ohio. Charles Ratcliffe & Co., Cincinnati, Ohio. J. B. Green & Bro., Cincinnati, Ohio. D. C. Hill & Co., New Albany, Ind. S. S. Marsh, New Albany, Ind. Dennis, Long & Co., Louisville, Ky.. Julius Barbaroux, Louisville, Ky. Thomas Meikle & Co., Louisville, Ky.... Ainslee, Cochran & Co., Louisville, Ky. Francis H. Smith, New York A. P. Dustin, Jeffersonville, Ind Norway Iron Manufacturing Company, Wheeling, West Va Respectfully submitted. Major Corps of Engineers and Brevet Major General U. S. A. C.-Abstract of bids for building dam at the crest of the Falls of the Ohio, opened by Brevet Major General L. Weitzel, major Corps of Engineers, on April 19, 1869, and May 17, 1869. D.-Abstract showing the names of parties to whom contracts have been awarded during the fiscal year ending June 30, 1869, by Brevet Major General G. Weitzel, major Corps of Engineers, on account of the improvement of the Falls of the Ohio. Name and residence. D. C. Hill, New Albany, Ind.. Nature of contract. Furnishing white oak lumber and timber for dam at crest of Lewis, Oliver & Phillips, Pittsburg, Pa... Furnishing iron bolts, spikes, and wedges for same. Construction of dam at the crest of the Falls of the Ohio. Respectfully submitted. G. WEITZEL, Major Corps of Engineers, Brevet Major General U. S. A. L 1. OFFICE OF THE CHIEF OF ENGINEERS, SIR: In the act of July 25, 1868, making appropriations to supply deficiencies, &c., one million and a half dollars were appropriated for the "repair, preservation, extension, and completion of certain public works on rivers and harbors," to be expended under the direction of the Secretary of War, with a proviso authorizing expenditure from this appropriation upon any of the works enumerated in a bill which passed the House of Representatives June 30, 1868. In compliance with the requirements of this proviso an allotment of $85,000 was made from this appropriation for the improvement of the Falls of the Ohio. A portion of this sum is now being expended in the construction of a dam at the head of the falls. The improvement of the navigation at the Falls of the Ohio is perhaps of greater importance than any other western river improvement, and in the allotment of the two million dollars just appropriated for rivers and harbors, the question arises, in what manner a portion of this sum can best be applied to this object, and whether any part of it can be expended in the completion of the enlargement of the Louisville and Portland Canal. The history and present condition of this work are briefly as follows: It was completed in 1830 by a company chartered by the State of Kentucky, the United States owning at that time 2,335 shares and individuals 3,665. In 1831 the government received 567 additional shares in lieu of dividends, making in all 2,902. In 1842 the State of Kentucky amended the charter of the canal company so as to authorize the president and directors, with the assent of the stockholders, to sell the shares belonging to individuals, either to the United States, to the State of Kentucky, or to the city of Louisville, for the purpose of eventually making the canal free of tolls; for which object the president and directors of the company were authorized to apply the net income of the canal to the purchase of the stock. This act further provided that the shares so purchased should be held in trust and transferred to the United States upon the condition that only such tolls be levied as would be sufficient to pay expenses, keep the canal in repair, and make all necessary improvements, so that the canal should fully answer the purposes of its establishment. From 1842 to 1855 the net income of the canal was devoted, without objection on the part of the United States, to the purchase of the stock held by individuals, and the United States at that time became owners of all but five shares of the stock, at a cost of $1,709,262. These five shares were retained, with the assent of the United States officers, and are now held by five individuals who still constitute the Louisville and Portland Canal Company, and who are, under the act of 1842, the trus'tees of all the stock purchased from individual owners for the United States, as provided in the said act. . By a resolution of Congress, of May 24, 1860, the president and directors of the company were authorized to enlarge the canal, and to construct a branch canal, using therefor the revenues and credits of the company, but they were prohibited from using or pledging the faith or credit of the United States for said enlargement, &c. This resolution contained a further provision that when "said canal is enlarged and its branch canal completed, and the cost of the improvement paid for," no more tolls shall be collected than sufficient to keep the canal in repair and pay expenses. The State of Kentucky had previously authorized the enlargement, and had also provided for its withdrawal from all control of the canal upon the formal acceptance by the United States of the canal, upon the conditions of the act of 1842. At this time (1860) the canal company was entirely out of debt and had cash on hand amounting to $131,764. This enlargement and extension were then begun, and stopped in 1866 for want of funds, after an expenditure of $1,825,403. The present indebtedness of the company is $1,567,000, in bonds due respectively in the years 1871-76-81-'86. It had in December, 1867, a cash balance on hand of $217,453. The United States are virtually the owners of the canal, and the work of |