agreement, the powder is paid for only at each payment to contractors, when the amount of each one's powder account is retained out of his estimate. The profit upon canal stores, as exhibited in this paper, consists principally, as appears, of articles on hand, estimated at their selling prices, and will fall some what short of the amount therein stated. They are, however, all unperishable articles, (consisting of iron, steel, &c.) valuable, and (with the single exception of a lot of horse nails,) will sell for near their cost. The selling prices of these articles were fixed just sufficient, as was supposed, to protect against any loss upon their purchase; and the result shows that their prices were not far from right, when it is considered that nothing for interest, insurance, or clerk hire, was charged to their account. The amount, both of accounts and retained money, have been materially lessened during the past year-the former being $36,056 14, and the latter about $132,946 00. There is also due contractors, for work done and estimated before the last payment, the sum of $51,940 51. This was occasioned by the want of funds, the work having been done by persons who did not subscribe for any of the State bonds negotiated by Gen. Wm. F. Thornton, or who had previously exhausted the sum negotiated on their account. Paper No. 8, is a statement of the several kinds of Commissioners' checks, issued under the present law, and which, from the check accounts and the register of checks in this office, appear to be in circulation; but of the amount which there appears, some are believed and others known to be withdrawn from circulation, but not returned to the office, as contemplated by law, and therefore not so entered upon the books, to wit: 90 day checks, No. 1, $223 0); 90 day checks, No. 2, $100 00. All checks drawn upon the State Bank, except the September issue of small checks, $12,091 67. Upon the Chicago Branch and Agency, I check, for $170 56-1 check for $393 33=$563 89. At the March payment, a large sum was collected from contractors, upon accounts against them, for supplies, &c. The payment of a large amount of retained money, as herein before mentioned, enabled the contractors to do it, and rendered it necessary, this being the security upon which such advances were made. A very large share of this money, so retained out of the estimates, in payment of their respective accounts, and which, when retained, belonged to the contingent fund, was left in the hands of the Treasurer, by which he was enabled to make a payment to contractors, of 508,390 18, with an issue of checks of only $409,448 70. This sum, so left in the hands of the Treasurer, together with others, collected and left in the same manner, was charged to him after the November payment, as appears in the Secretary's account. During this year there have been no supplies purchased, except powder and small quantity of patent safety fuse. The latter has been all sold, and the account settled. The powder, by agreement, was to be paid for no faster than consumed. At each payment the amount of powder previously drawn was retained from each one's estimate, and paid over to Mr. Laflin, the person with whom the agreement for powder was made. The Ilinois and Michigan Canal account, upon the books of this office, from the commencement of operations, in the spring of the year, 1836, to December 1st, 1840, and which embraces all moneys paid for its construction thus far, stands as follows, to wit: Construction Account, to which is charged all payments to Contractors. During the first year, ending December 1, 1836 $ 33,898 76 297,178 95 1837 The contingent account is one to which all charges are made, except the actual payments to contractors, for work on the canal; and many accounts have been transferred to this, which do not strictly belong thereto according to the general understanding of the term, and if deducted there from would materially reduce the sum above mentioned, as having been charged to that account. The following are such accounts, to wit: Which leaves the contingencies, proper, 657 67 1,256 63 77,795 16 $175,390 36 Less than five per cent. upon the amount paid upon construction account. All which is respectfully submitted. J. MANNING, Secretary. LOCKPORT, December 1, 1840. |