On the 23d of February, 1887, a second notice was sent them to the same effect, accompanied by a warning that under the provisions. of paragraph 16 of the specifications, on the 1st of March such measures would be taken by the engineer in charge as might be necessary for the prosecution of the work, and any excess of cost which might arise above their contract price must be borne by them. Up to the 15th of March, 1887, the company gave no indication of beginning work, its president stating that so far they had been unable to procure the necessary plant for the purpose. On the 16th of March, 1887, therefore, under paragraph 16 of the specifications, an agreement was made with Henry Du Bois' Sons, of New York City, to put two dredges at work upon the Buttermilk Channel improvement, for which they were to be paid at the rate of 25 cents per cubic yard, measured in scows, for removing the material composing the shoal. March 18, 1887, the failure of the United States Dredging and Canal Construction Company to begin work was reported to the Chief of Engineers, and it was recommended that their contract be annulled, and that the company and its bondsmen be held for the additional expense to which the United States would be subjected by reason of the failure of the company to fulfill its agreement, and this recommendation was approved by letter of March 21, 1887. The contract was accordingly annulled by letter addressed to the president of the company, dated March 31, 1887, and he was informed at the same time that his company and his bondsmen would be held for the loss which the Government would suffer by their default. The loss to the United States and the amount for which the United States Dredging and Canal Construction Company is held is the difference between 233 cents, the contract price per yard, and 25 cents, the price at which it was subsequently let, and is as follows: One hundred and eighty thousand cubic yards, at 13 cents per cubic yard, equals $3,000. After the annulment of this contract, the agreement entered into with Henry Du Bois' Sons was extended so as to include the whole amount of work proposed under this appropriation, and the contract was made with them, dated March 16, 1887. Work under this agreement and subsequent contract was begun March 17, and was continued to the close of the fiscal year, during which time 89,628 cubic yards of material were excavated from the channel. This gave the channel an increased depth of 22 feet for a width of about 450 feet, and took off the crest of the shoal on which, in one place, there was only 13 feet of water at mean low water. Based on the survey of 1884, when this contract is completed, there will be about 125,000 yards to be removed, at 50 cents per yard.... To which must be added 40,000 yards, mentioned in my last annual report, for filling in since the survey $62,500 20,000 82,500 Contingencies..... 12,500 Total.... 95,000 Although the lowest bid last fall for the work was 233 cents per cubic yard, and the work is actually being done for 25 cents, it is not safe to estimate the cost at less than 50 cents per cubic yard for the remainder of the work after the present contract is completed. It is a difficult place to work in, on account of strong tides and passing vessels, and the digging must be done in a depth of from 22 to 26 feet of water. 8872 ENG 87-45 The accompanying letters from Mr. Jeremiah P. Robinson and others, show how large the commerce of Buttermilk Channel has become, so far as vessels and cargoes are concerned which land at the wharves adjacent to it; but they do not show the passing commerce which uses this channel, and which is probably quite as large, if not larger still, and show also the commercial necessities for keeping both Buttermilk Channel and the Gowanus Bay channels open. A similar and equally interesting and important letter will be found in the report upon Gowanus Bay. This work is in the collection district of New York. The nearest port of entry is New York City, and the nearest work of defense Fort Columbus, New York Harbor. Amount of revenues from customs collected at the port of New York during the fiscal year ending June 30, 1887, $147,058,373. July 1, 1887, amount expended during fiscal year, exclusive of liabilities outstanding July 1, 1886.. $16,876. 41 July 1, 1887, outstanding liabilities... 30, 236. 62 47, 113.03 July 1, 18-7, amount available................ 9, 461.94 (Amount (estimated) required for completion of existing project.. Amount that can be profitably expended in fiscal year ending June 30, 1889 Submitted in compliance with requirements of sections 2 of river and harbor acts of 1866 and 1867. 95, 000, 00 95,000.00 Abstract of proposals for dredging in Buttermilk Channel, New York Harbor, New York, opened November 23, 1886. 5 Morris & Cumings Dredging Company, New York, N. Y . 33 56, 100, 00 6 United States Dredging and Canal Construction Company, New York, N. Y. Contract made with the United States Dredging and Canal Construction Company, December 16, 1886, for dredging 180,000 cubic yards. Subsequently forfeited, and contract made with Henry Du Bois Sons, at 25 cents per cubic yard. COMMERCIAL STATISTICS. OFFICE OF JERH. P. ROBINSON & Co., DEAR SIR: In reply to the first inquiry 2. "The amount of commerce and navigation at the present time of Buttermilk Channel?" It consists of all the East India trade. Most of the continental European trade. All the South American trade. Most of the coastwise through trade of vessels to and from Long Island Sound from ports on the Atlantic seaboard from Texas to Maine and as computed by the record of the tons of imported merchandise weighed by the United States for duties in the districts adjacent to and situated on the Buttermilk Channel, 64 per cent. of the entire quantity weighed in the port of New York. The grain elevator system of New York is situated on the channel, and easily threefourths of the entire export of grain departs therefrom. 3. Reply to inquiry as to influence of the improvement of Buttermilk Channel on rates of freight. Letter of Messrs. J. E. Ward & Co., agents of the New York and Cuba Mail Steamship Company, is respectfully submitted, and of Messrs. Funch, Edye & Co., agents of the various lines, as per their letter-heading. As to insurance in the same connection the letter of Messrs. Satterthwaite & Platt, agents of the Insurance Company of North America, is respectfully submitted. 4. The prospective advantage to commerce can be estimated by the value of improvements in wharves and warehouses and grain elevators that have been built on the shores of Buttermilk Channel opposite and near the part improved since 1879, viz: Arbuckle's coffee-mill warehouse and piers.. Empire stores, additions. Estimated value. $500,000 Mediterranean stores and piers Prentice stores, covered piers added.. Woodruff stores covered piers, warehouses, and grain elevator. Dow elevator (grain).... Robinson's stores, piers, and additions.. Union stores, covered piers, etc... Atlantic Docks, additions, warehouses, grain elevator, and covered piers.. A water-way with sufficient depth of water will continue the development of these indispensable facilities for an increasing commerce. Very respectfully submitted, JEREMIAH P. ROBINSON. P. S.-Prior to 1879 there were only the Cuba steamship lines (small steamers) and the Brazil lines of steamers going to Brooklyn. In 1887, on Buttermilk Channel, there are sixteen regular lines and seven lines which discharge in Brooklyn and load in New York in addition Brooklyn is only the place where tramp steamers can get a berth to unload and load. Gowanus Bay Channel is practically and commercially an extension of Buttermilk Channel, in all respects except as to the coast wise through trade via Long Island Sound. The improvement of the shore in the erection of (the greatly needed) wharves and warehouses only awaits the completion of its improvement by the United States. The work so far done has resulted in an increase locally, viz: These enterprises have been located since the beginning of the work, assuming that the improvement of the channel would progress, but from lack of appropriations so little has been done during the last two or three years that the business of this locality is hampered by the extra expense of lighterage of cargoes of vessels of over 16 feet, which limits its utility and retards a development to meet the pressing requirements of commerce for its uses. As soon as the channel is improved a development equal to the adjoining district, that of the Buttermilk Channel, will ensue, as the demand for the terminal facilities for wharves and piers in New York Harbor is increasing far faster than such available and accessible places can be obtained. The commerce of this district can not be separated from that of Buttermilk Channel, for the same business seeks that part of the Brooklyn water-front. It is now crowded in the range of the wharves where the deeper water of Buttermilk Channel is. When the lower part of the Brooklyn water-front is equally accessible by the improvement of the Gowanus Bay Channel this volume of increasing business will spread itself and immediately occupy it. Respectfully submitted. Col. WALTER MCFARLAND, JEREMIAH P. ROBINSON. Corps of Engineers. LETTER OF MESSRS. FUNCH, EDYE & COMPANY. [Funch, Edye & Co., ship brokers, 27 South William street. P. O. box 1722. Address for cablegrams, Funch, New York. Agents for Netherlands American Steam Navigation Company's steamers for Rotterdam and Amsterdam. White Cross line of steamers of Antwerp. Merchants' Express line of steamers for Havre. Thingvalla line of steamers for Copenhagen. Compagnie Bordelaise de Navigation à Vapeur, of Bordeaux. Freight agents for Hamburg American Packet Company, of Hamburg.] NEW YORK, July 11, 1887. DEAR SIRS: In reply to your inquiry we beg to say that the freights from Europe and from the West Indies to this port, as far as this question has come under our observation, are from 25 to 35 per cent. lower in this year than they were in 1879. We attribute the fact largely to the increased size of steamers now prevailing, and their adoption by the trade generally. The increased depth of water in Buttermilk Channel, around the Brooklyn water-front, has without doubt largely led to the result stated, since without this improvement it would not be possible to accommodate anything beyond a percentage of these large vessels for want of suitable room in New York Harbor. Believe us, dear sirs, very truly yours, Messrs. J. P. ROBINSON & Co., present. FUNCH, EDYE & Co. Respectfully forwarded to Col. Walter McFarland, U. S. Engineer. LETTER OF MESSRS. JAMES E. WARD & COMPANY. [Office of The New York and Cuba Mail Steamship Company. James E. Ward & Co., agents, 118 Wall street.] NEW YORK, July 8, 1887. DEAR SIRS: In reply to your inquiry of the 7th instant we would say that in the year 1879 we think the rate of freight on hogsheads of sugar from the West Indies ranged from $3 to $5 per hogshead; average, $4 per hogshead. Up to that time the bulk of the business was done by sailing vessels of from 12 to 18 feet draught of water. At present it is principally done by steamers drawing from 16 to 22 feet of water. Yours, very truly, Messrs. JERH. P. ROBINSON & Co., present. JAMES E. WARD & Co. Average rate of freight on sugar 1886-'87, 12 cents per 100, equals (1,800 pounds to hogshead), $2.06 per hogshead. Information by telephone received from Messrs. J. E. Ward & Co. LETTER OF MESSRS. SATTERTHWAITE & PLATT. [Insurance Company of North America. Branch office, "Post Building," 16 and 18 Exchange Place.] NEW YORK, July 7, 1887. DEAR SIR: We desire to bring to your attention the importance of the improvements of Gowanus Bay Channel. The number of vessels that get aground while going to sea from that vicinity makes the insurance of same a greater risk, as frequently the damage incurred is not ascertained until they get to sea, and to that may be attributed in many cases their total loss. This channel is a necessity to the commerce of the port and if an increase in the depth is made without delay would be of the greatest benefit. No more important improvement, in our opinion, can be made in this harbor and the necessity for it is felt by us almost daily. The deepening of Buttermilk Chaunel has been of great benefit aiready, as shown by the lessening of the number of vessels grounding therein the last year; the same depth of water should be made in the Gowanus Bay Channel. Yours very truly, Col. W. MCFARLAND. SATTERTHWAITE & PLATT. COMMERCIAL STATISTICS. The following statement concerning the commerce of Buttermilk Channel, New York, was prepared by Inspector Francis J. Rodgers, who has been employed for many years upon the works of public improvement in the vicinity of New York: Amount of commerce and navigation for the fiscal year ending June 30, 1887. Value of merchandise, $154,829,062, consisting of sugar, molasses, coffee, hides, India rubber, tobacco, wool, hemp, jute, pig-iron, chemicals, grain, cotton, and is 63% per cent. of the value of the weighed merchandise entering and leaving the port of New York as given by the letter of Jeremiah P. Robinson herewith. Rates of freight and insurance have been reduced since the work began. Those of freight very largely, owing to the substitution of steamships of large capacity for sailing vessels. The rates of marine insurance have been reduced about 10 per cent. since 1880. The competition is between steamers and sailing vessels; the former, being of larger capacity and greater speed, are enabled to carry merchandise at less cost and risk. The advantages to commerce and benefits to the community which will follow the completion of this work are, the increase in number and capacity of the steamships engaged in this carrying trade, and the ability of taking the longest of them directly to and from the wharves, thereby saving the expense and avoiding the delays caused by lightering. E 8. IMPROVEMENT OF GOWANUS BAY, NEW YORK. Gowanus Bay is that part of New York Harbor which lies at the mouth of Gowanus Creek, in the southwestern part of the city of Brooklyn. The depth of water in the channel was formerly only from 7 to 12 feet at mean low water, which was wholly insufficient for the passage of the |