IMAGE EVALUATION TEST TARGET (MT-3) V /. {•/ Q>, :/. tA 1.0 I.I 1.25 If ilM IM .t 1^ ill 2.0 1.4 1= 1.6 ^ iV iV ;\ \ ;\ ■^^ ,» ^ CIHM/ICMH Microfiche Series. CIHM/ICMH Collection de microfiches. Canadian Institute for Historical Microreproductions Institut Canadian de microreproductions historiques 1980 Technical Notes / Notes techniques The Institute has attempted to obtain the best original copy available for filming. Physical features of this copy which may alter any of the images in the reproduction are checked below. Coloured covers/ Couvertures de couleur L'Institut a microfilm^ lo meilleur exemplaire qu'il lui a 6t6 possible de se procurer. Certains ddfauts susceptibles de nuire d la qualitdi de la reproduction sont not^s ci-dessous. D Coloured pages/ Pages de couleur Th po of fill Th CO or ap D Coloured maps/ Cartes gdographiques en couleur D Coloured pirtes/ Planches en couleur Th fill ins D D Pages discoloured, stained or foxed/ Pages d6color6es, tachetdes ou piqu^es Tight binding (may cause shadows or distortion along interior margin)/ Reliure serr^ (peut causer de I'ombre ou de la distortion le long de la marge intdrieure) D n Show through/ Transparence Pages damaged/ Pages endommagdes Mi in up bo fol 3 Additional comments/ Commentaires suppl6mentaires Front cover restored and laminated. Bibliographic Notes / Notes bibliographiques D D Only edition available/ Seule Edition disponible Bound with other material/ Relid avec d'autres documents D D Pagination incorrect/ Erreurs de pagination Pages missing/ Des pages manquent D D Cover title missing/ Le titre de couverture manque Plates miss'ng/ Des planches manquent D Maps missing/ Des cartes gdographiques manquent Additional comments/ Commentaires suppldmentaires B'ank leaves added during restoration may appear within the text. Whenever possible, these have been omitted from filming. IS la The images appearing here are the best quality possible considering the condition and legibility of the original copy and in l ^ CONFIDKHSTTIA^I, REf'ORTS TO THB •?» HON. SIR CHARLES TOPPER. K.O.M.a, O.B.. Mnister of ItaUwnys and Oamis, ON THB HYDRAULIC POWERS 9 ^nVATBD UPOH I'Hl ST. LAWRENCE AND WELLAND CANALS 1?:0BERT C. DOUGLAS, dsmtant .Enginter, Railwayt and Cmnai$. OTTAWA; Printed by MacI,ran, Uooek &: Co., Wellh.gtou Street 1882. nmmmmm i 'i? CONFIDEKTIAt. REPORTS TO TU i HON. SIR CHARLES TUPPER, K.C.M.G.. C.B Minister of Railways and Canals, ' * '* ON rn HYDRAULIC POWERS ■i? •ITUATIO WON TH« ST. LAWRENCE AND WELLAND CANALS IT KOBERT C. DOUGLAS, A»mtafU £nginter, Railway, and Cmah. .,. OTTAWA: inntod by MacLka., Boobr & Co., Wellington Straet. 1882. ■^"Am i i CONTENTS. s GENERAL INTRODUCTORY REPORT. IXAMINATION OF SYSTEMS ADOPTED BY WATER POWER COMPANIES, UNITED STATES. Statistics ihowing the iniportauce of wator-powera 1 Uolroki water po'n'er, description of 'I Method ' t leasing water and unit of ineasurement ^ Sduplus Watk I 3 The tera as used bj Water-Puwer Companies 3 Measurement and Reoclation or Sdpi'Ly of Wateu 4 Waste, ov use of more water than grantcl, pr^srentcd by terms of leases 4 ProTision, for measurement of water, in leases 4 Methods oi measurement 4 Weir meaBuremeut 4 Measurement by the wa;,er-wheel) 5 Measurement by gauging Humes , » >... 5 Cost of Watgr-Poweu 6 Table of charges at various places in the Caited States ~ 6 Stkau Power ^ 7 Steam «>«. water-power — 7 Steam and water-power i.i the nianiifticture of cotton « 7 Value of Wateb-Powbu uco.n Tim Canals 10 Water-pewer. dependent upon its situation, for value 10 Water-power should not be a bonus to manufacturers 10 .A fixed value should be establis'ied for water-power 11 EfTects of the alienation ol mill sitos, and water-power, at Chaudi6re Falls, Ottawa 11 Tramspokt, and Expenditure, upon the Canals ».. 12 Water-powers to maintain the canals if tolls are abolished m 12 Debt on, and the amount of tolls from, the Canadian and New York Canals 12 Estimates of trafiSc, and revenue, from Canadian Canals 13 Competition of the Erie Canal, and Railways, to tlie Canadian Canals 14 Present Form of Leases ShoOld be CaAKaEo ^ „ 16 Lessees to be given the opportunity of testing water-wl eels 13 Remarks by Mr. Francis applicable to Canadian Canals , 16 LACHINB CANAL. ' EXTBAOTS FROM DePARTMIMTAL REPORTS — r ' Showing the effect of the present system of L-asing water upon the ('d Lachine Canal 17 Authority for Ureatin i Water-Power 23 Facts, for the law oiRcers as to the manner leases were granted............ 24 Professional gentlemen employed, and date of employment 26 Watbb-Powib at Basin No. 2 „.... 27 Mill sites, with a certain quantity of water to each, laid off , 27 Quantity of water lessees, under their leases, are entitled to 27 Indefinitencss of the term "run of stones.' ' m. 29 Statements, with regard to the quantity of water, by Engineers and Officials 29 Quantity of water to a "run of stones." > , «....« , 32 Little improvement in water- wheels in twenty years 34 Discharge from the water-wheels. , 34 St. Gabriel Watbr-Powbr 36 Character of lease and its stipulations m 36 Lands bought to utilize the power and division of property 36 Arbitration between Mr. Ira Gould and Government , 38 Quantity of surplus water at date of lease 37 Changes and erections necessary to supply the mills with water , 38 Lost from the leaie of Messrs. Young k Gould. « m.> 39 ir LAOHINE OAKAL— Concluded. PAOI OOTG St. PaT!1, WATER-POWEIt 39 EZFSNDITURE FOR WaTER-PuWKRS 39 No surplus water upon a canal for navigable purpoaes 40 Direct expenditure for hydraulic power 40 Summary of expenditures , ^ • 41 Fbopobed Systkm for Enlaiiouo Cakal 41 Currents in Caiinla , „ 41 Hydraulic s^radient in Canal 43 Dia(;ram of water-section, notation and formula of discharge 44 Capacity of apertures, for supplying the canal, at the bead 44 Quantity of water to bo leased for hydraulic power 46 Method of leasing water 47 Power available at Basin No. 2 17 Value of power ^ 47 Value of land occupied by hydraulic lessees 48 Revenue that might be derived from hydraulic power , 49 Comparison of water-powers 49 Cancelling of present leases, and method of dcHliug with lessees 60 lilBT OF APPKNOICKS 51 Copy of report of Mr. Barrett, on which lots were sold 62 Copy of letter of Secretary or Public Works, transmitting the above 63 Cojiy of Order in Council, authorizing sale 54 Copy of conditions and regulations of Mr. Barrett, read at sale 64 Copy 0*' certificates of auclioueers 66 Copy of letter from Secretary of Public Works and Order in Council tor two leases. 67 Extract from leaff 67 Cojiy of Engineer'.^ Report, laying off hydraulic lots at St. Gabriel and Ct'te St. Paul 58 Cojiy of application for control of power at .St. Gabriel, by John Young E.-q 59 Coi>y of -t'ltement of the niiinner in which lots were sold by Mr. Oantin 69 Co|)y of Engineer's Ueport upon Mr. Young's application 60 Ettracl from Enf^incer's Report, laying off lots 60 Extract from Eiigin.=er'3 Report upon Welland Canal 61 Valuation of the land occupied by milh, by T. J. Potter 61 Table of water-wheel.^, sluices, discharge of water, &c , Ba in No. 2 62 Table of water-wheels, diachsirge of water, &c., St. Gabriel 64 Table of water-wheels, discharge of water, &c , COte St. Panl ,. 65 Table of average levels vt river, and head between river and canal, 66 Description of manufacitures, Ac, Basin No. 2 67 Do do St Gabriel 68 Do do cote St. Paul 69 LiTTIR or TRANBUITTAL OF REPORTS UPON TBG BBADBARNOIS, CORNWALL, WlLLIAUSBURQH AND Welland Canals ,.., 70 Fi Ri Gi 1,0 Jtj) Ta! Tui Salj St. Lrag Wat BEAUHARNOIS CANAL. OlNIBAL DeSORIPT.'ON OF WaTER-POWBR 71 Power created, unconnected with the canal, by dams 71 Effect and cosv of the construction of dams 73 Power advertised for sale 73 Annual expenditure upon the dams and attendant works 74 Wist side of Dam 76 Inception of Montreal Cotton Company 76 Bait bide of Dam 79 Present cost of power 79 Tablb or Wateb-wbebls, Power used, MAUHtNERV Impelled, ko 80 Weli AOTI Prop Effe Oeni<: CORNWALL CANAL. GlMGVlAL DkSOUIPTION OF POWBR 82 Lease to Mr. George Stephen 82 Lease to Mr. A. F. Gault (ti^.ormont Cotton Company) 84 Lease to Mr. Andrew Uodge , 84 Power at three Locks.. 84 Ice jams 86 Supply of water limited ,. 85 Value of Water-powkr in tuu iMA.\UFACi'URE of Papbr •>•••• 86 Table of average levels of river, and head between river and canal ~ 89 Tablb or Watbr-whbelb, Powbr ubbd, MAoaiKiSBT iupblled, fto ■ • •••• 90 Manc Tabli 39 39 40 40 41 41 41 43 44 44 46 47 47 47 48 49 49 60 61 62 63 64 64 66 67 67 68 59 69 60 60 61 61 62 64 65 66 67 68 69 70 71 71 73 73 74 76 76 79 79 80 82 82 84 84 84 86 85 86 89 90 WILLIAMSBDRGH GANALS. PAOI General description of 92 Fahrin's Point Uanal 92 History of a mill site, and waier-power, free of rent 92 Rapidb Plat Oanal , 93 Mill priTJleKC sold to iMr. Benjamin ChaflFcy , 93 losufficient area of supply nt head of canal , 94 Appropriation fur an increased 8up])ly „ 94 Galops Canal 91 Power on the Iroquois section, Lock No. 25 94 Lock No 26, Point Cardinal, Powrii at « 95 History of a jrront, in iierpetuity, of a mill site and water-power 95 Junction Canal, Alleobd Damacik by tuk Constuuction or 97 Claims for loss of head investigated « 99 Head proved to have b 'en increased , 100 Allowing claim would affect leasing of water elsewhere 101 Assignees, no claim, if damage bad been done :^., „... 101 No claim by condition of grnnt 102 A supply weir constructed since date of grint 102 Power as Taluable as upon other canals 103 Grant and lease proTide for water-wheels of tlio best description 103 Not advisable to grant application for greater iuad 103 Tablb or Water-whbels, Powbr usbd, Macuinkiy iMi'ULLHn, .to., W1LLIAM810BOH Canali 104 WELLA.VD OANAL. Thi Hydraulic Power, onb or thk iNDroKMKNTS Ofpbred STOOKnoi.DEBS as a Soitrcb or Profit 106 Hydraulic Power, a factor in determining route and cost uf canal 197 Salb and Re-pcrchasb or all the Water-power 108 Act of Parliament sanctioning re-purchase 110 St. Caibarinb's Watbr-power Company 110 Evidence with regard to this grant, in 1835, by Francis Hall, C.K Ill Do do do in 1837, bv Superintendent of the Canal Ill Do do do in 1847, by Samuel Keefer. C.E 112 Do do do in 1850, by H. H. Killaly, C.E 114 Present lease executed 116 Expenditures for St. Catharine's Water-Power Company 116 Investigation of rights of the Company 118 Lrasb to Calvin Pbblps, Abbignbk, S. Nkklon • 119 Legal questions with regard to these two leases 129 Water roR Mill Granted in Perpbtuity to Georqe KEEriR, Esq ». 121 Minutes of the Directors of the Wellaud Canal Company ^ 121 Deed executed „ 122 Welland Canal Loan Company 123 Manner in which the objects, set forth by the Company, were fulfilled 124 AOTIOK TO BB TAKEN UPON PrBBBNT LeASES m 125 The Lincoln Paper Mills - . . 127 Hills consuming more water than leased 127 Proposed Scheme for Enlarged Canal •• • 127 Conversion of the old canal into an hydraulic canal .*. 128 Power on the hydraulic race 129 Power at Dunnville and Feeder 129 ErrECT or thb Competition or Rival Routes upon rnn Fupdrk Trade op the Welland Canal. ..•..>. 130 Comparative Table of grain arriving at BufTnio and Port Colborne 131 Table of down freight and average cargoes, Buffalo to Albany, via Erie Canal 131 Rival routes being developed oa Canadian territory 132 General Concluding Remakes - 132 Water-wheels and method of estimating p'WPr ■ ~ 133 Table of efficient and inefficient water-wheels » 134 Table of rents for hydraulic power at dififcrent periods ~ 135 Method of setting value of power for renewable and new leases 136 Comparative table of rental of power on Canadian canals and other countries 137 Manufaotouibs upon the Canals • 137 Summary of industries established upon the canals 138 System to be adopted depends upon policy pursued 138 Method suggested of dealing with all the leases 1.^9 Table of Water-wheels, Power used, Machinery, &c., upon Welland Canal 141 Tabic of water-wheels, power used, machinery, &c., upon ihe main line, Lessees 142 Table of water-wheels, power used, machinery, &c., St Catharine's Water-power Company, Bub-leased 148 Table of water-wbeels, power uied, machinery, &c., Feeder and DunariUt 1S2 vi WBLLAND CkSAh-Contluded. StIMMIJJT for CoilPARIgOIl, HAD! PAOI 156 APPENDIX. 1 J 104 156 1 J mmmtmmmmmmm ""' < V Ottawa, 29th April, 1882. Sir Charlbs Tuppeb, C.B., K.C.M.G., Minister of Kailways and Canals, Ottawa. Sir:— According to your instructions I have raado an oxaniiiiation of the systems of loasinff water for power, adopted by various water-power companies in the Eastern States, U.S. I visited four cities, whose growth and minufacturing importance are the I'esult of the development of their water powers. Before dealing with the more immediate objects of this report, the following statistics will not bo foreign to the subject, and will illustrate the Statistics showine advantages of favorably situated wator-power to establish centres of wate?powera.^ ° industry, to induce large investments of capital, and the training and employment of skilled labor. In Lowell, Mass., one of the chief cities in the manufacture of cotton, the first water Avheel was erected in 1.823. The first works constructed gave some 3,300 horse-powei's ; by various improve- ments completed in 1846 this power was increased to its full extent — nearly 10,000 borse-powers. It has at present exceeded its water power by some 15,000 horse- powers, which are supplied by steam. The following comparative statistics, the first published in 1835, will show the groat increase in raunufactured products in forty-six years. Comparative Statistics. Capital stock Number of mills besides appendant buildings. Spindles Looms Females employed , Males do Yards made per year of cotton do woollen do carpeting Shawls made per year Hosiery, pairs made per year Pounds, cotton used per year do clean wool do Yards dyed and printed per annum Tons of anthracite coal used per annum Steam-power (445 boilers) do (121 engines) Turbine, diameter 2 ft. to 10 ft 1835. 6,650,000 22 116,804 3,933 5,051 1,512 38,857,040 312,000 1881. 12,256,400 470,000 17,300,000 153 806,000 20,521 12,809 9,750 209,066,000 8,335,000 2,700,000 350,000 13,695,520 68,173,984 11,750,000 97,240,000 80,000 10,793 14,990 80 The yearly products manufactured in 1881, reduced to ordinary cottons and woollens one yard wide, are about 130,000 miles in length, or 47,272 acres — i.e. 78*8 square miles, which is nearly seven times the area of Lowell, 2 Those industries give employment to nearly 22,559 operatives, in a population of 64,000. Lawrence, Mass. — The site of this town was, in 1845, a sand bank ; it now has a population of 40,000, of whom 12,000 are engaged in the various manufactures. Capital invested $8,550,000 Spindles No. 346,000 Looms " 10,000 Yards of cloth produced annually " 100,000,000 Holyoke, Mass, — Started in 1849; the principal product is paper, amounting to some 150 tens daily. There are alno many large miscellaneous industries. Lewiston, Mo. — Operations were begun about 1850. Capital invested $7,200,000 Spindles No. 291,806 Yards of cloth produced annually " 55,000,000 Similar statistics could bo cited of many other cities, the above coming more particularly under observation the importance of the power, and the magnitude of the manufactures, it has created, were impressed. It is said that American statistics show that a population of 5,000 people follow 1,000 horse powers engaged in the manufacture of cotton. These water-powers were created expressly for power, and by the Method by which expenditure of private capital, in contradistinction to those on the created."^*" *^° Canadian caaals, which.having been constructed for navigation, the water powers are auxiliary and subsidiary. The companies generally included mill-sites and water-power. A company being formed with the amount ot capital stock required, land was purchased adjacent to a favorable fall, or rapid, the lakes that acted as reservoirs for the river purchased, the dams, canals, and other works necessary to render the fall available for power, and the supply of water continuous, were constructed ; the land and water-power were sold together. The magnitude of the works I'equirod may be shown by a brief description of the Holyoke Wator-Powor, one of the principal powers in the United States. The Company was incorporated with a capital of $4,000,000; they purchased Holyoke Water- 1,200 acres of land adjacent to tbo falls and rapids at South Hadly, power, description Mass., these extended for a distance of two miles, with a total fall toCTeter***^ of s'^^y foet ; at thoir head was built a dam of timLer, filled with stone and gravel, over one thousand foot in length, and ninety feet wide at the base, with an average height of thirty feet. This dam contains 4,000,000 feet of timber. Theabutmonts and bulkheads on each side are of masonry. Through the wearing away and undermining of the rock by the quantity of water falling over the dam, its stability was endangered. This cavity was filled with timber and stone, and an apron, extending 'from the top of the dam to some distance down stream, was constructed at a cost of $200,000. The masonry bulkhead is one hundred and forty feet long and forty-six feet wide ; upon it is built a gate house containing the machinery for operating the gates, twelve in number, fifteen feet high, twelve foot wide, and weighing four tons each ; these are raised and lowered by water-power. The total fall or head of sixty feet is divided, into two falls of twenty and twelve feet, and one fall varying from twenty to twenty-eight feet, according to the height of water in the river, by three canaln, some four miles in length ; between the differ- ent canals and the rivor the mills are situated. At each level, watchmen are stationed at overfalls or waste weirs, who koop the levels uniform, exclusive of the water passing through the races of the mills. These levels are never allowed to vary over an inch from the established height of a canal. The bulkheads, gates, and the general equipments of the canals do not vary much among the principal Companies. i 3 P . 1 The main dam is frequently built of solid masonry ; all the works ai-e of the most improved description ; the result of skilful engineering and practical ability. The power created and utilized, or ready to be made use of, amounts to 30,000 horse-powers in Holyoke ; in Lowell, 10,000 horse-powers ; in Lawrence, 10,000 horse- powers ; in Lewiston, 7,500 horse-powers. The method of leasing water varies, in the older established companies, the unit Method of leasinK °^ measurement is termed a " mill power," to those unacquainted water and unit M with its origin, it is more indefinite than our term " run of stones," measurement. -with this exception, that, their leases define the amount of water under a stated head for each "mill power," a serious omission in the leases of water- power on the Canadian canals. The article, in the leases, defining the mill power, is virtually the same in the leases of all the companies, using that standard and reads: "Each mill power is declaimed to be the right, to draw from nearest canal or water course of the grantors, and through the land to be granted so much water as shall give a power equal to cubic feet per second, when the head and fall is feet, and no more is to be drawn in any second." The number of cubic feet of water, and hoad, or fall, vary according to circum- stances, but always represent the same amount of power. The origin of the term " millpower " is quoted from Webber's " Manuel of Power." The second mill built at Waltham contained 3,584 spindles, with all the apparatus necessary to spin No. 14 yarn and convert il into cloth, which was taken as a standard, and the necessary water-power was estimated and established as the right to draw twenty-five cubic feet per second, on a fall of thirty feet, or a gross horse-power of 85*05, supposed to net about 60-horse power. The price for this was fixed at Lowell, at $4.00 per spindle, or $14,336 for a mill power and the necessax-y land, of which $5,000 were to remain u::paid, subject to an annual rent of $300 or $5.00 per horse-power. At Lewiston, to avoid any misconception, a lease reads " to draw so much water to give horse-powers, such horse-powers to be 75 per cent, of the theoretical power of the water, equal to millpowors, or cubic feet under a hoad or fall of— feet. The Turner's Fall's Co., the unit is^— cubic feet per minute. The Ousatonic Water-Power Co., the unit is a square foot, and a defined amount of water, viz. : — " Each square foot to be drawn under andby virtue of this lease shall consist of, and be, five cubic feet of water per second, and no more." From these quotations, it is evident, there could not be any misconception of the amount of water that lessees would bo entitled to use, the absence of this most elemen- tary precision in the leases of water-power upon the Canadian canals has caused no little difficulty. Surplus Water. — When the demand for increased production required the enlargement of the mills, and more power was required than granted The term surplus under the permanent leases, or \ihen by improvements the supply of water-power com- water was increased, above the amount guaranteed in the original P»"i8s. leases, it was called surplus water. Rules, and regulations, governing the use of this water were drawn up with equal stringency to the original leases, and charged for at diflerent rates. It will be observed that many of these quotations might bo applied to the Cana- dian canals. In the following a few changes adapted to the circumstances would render it directly applicable : — " And whereas oy reason of the removal of obstructions (enlargement) in the Jtiver Merrimack (of the canals) and other improvements made by the said proprie- tors (Government), the number of mill-powers, or privileges, has been gieatly increased. And whereas the said lessees have been for some time past, and are now, using more water than by the terms of the several grants made to them aforesaid, they have the right to use, but without any claim of right thereto." '^^''° .•««^noonf> This increased Waste, or use of more water than granted, prevent- ed by terms of lease. supply was called surplus water ; a higher price had to bo paid for it, as the power became more valuable than at the date of the original leases. The use of this surplus water was allowed upon the expresfi condition that the Engineer of the Company should have "all reasonable fucilities for ascertaining the quantities used " One company has two different leases, one for " permanent water," the other " surplus water." The first is the amount flowing at lowest water in river, and subjoct to no fluctuation ; the second, the amount flowing, tho rivor will supply over the defined amount leased as permanent water. The lessees of surplus water, having secondary interests, are charged at loss rates for thoir power. Tho term surplus water is not in this cape synonymous. Tho interests of the Water-Powor Companies, and the mills using their power, are to a great extent identical. Upon tho Canadian canals there are two interests ; navigation, and tho mills. The leases, in the first case, botwoen parties with mutual interests, are exact, definite, and the stipulations stringon.. The leases in the second case, where navigation with opposing interests requires to be protected, are loose and indefinite. Water is prevented from being wasted by an especial article in tho leases which roads : " Tho grantees are not to'uso more water than is granted, nor permit it to be wasted for want of repairs, or through tho deficiency of thoir works or otherwise ; and if so wasted or more used than granted, tho grantors mny stop tho water from entering the flumes by closing tho gates across thorn, or by any other method, until such waste or oxcossivo use may bo sufficiently guarded against, and may at the same timo have thoir action at law for damages; and other grantees who shall suffer thereby may also have their action at law for damages." These leases provide for tho measurement of water. The clause roads :— " For tho purpose of ascertaining the quantity of water drawn from tho Provision for canal of the lessor by the lessee, or permitted to run through the head ■water in leases, gates of tho lessee, at any time, the lessor reserves the right to con- struct and maintain any weir, gauge or device of measurement which said lessor shall adopt, and have access to the promises of said lessee by tho duly authorized agent, engineer, or other officer of the lessor, and with tho necessary work- men and assistants proper for the measuring or ascertaining of tho quantity of water drawn or permitted to flow by said lessee." There has boon considerable attention paid to tho measuring of water in Europe and India by scientific men. Various appliances have been designed ; they are generally called modules, and adapted to measuring small quantities of water, principally upon irrigation canals. None that I am aware of would measure and regulate the large amount of water supplied to mills. In the United States, Mr. Francis, tho distinguished hydraulic engineer, has made an elaborate series of experiments, to determine accurate methods for measuring the volume of water flowing to tho various mills, upon tho canals of tho Water- Power Company, of which he is engineer. Upon those experiments, with others that become necessary in the exorcise of his profession, ho has expended nearly $100,000. The results obtained have been published by Mr. Francis in a work entitled " Lowell Hydraulic Experiments." I may here acknowledge my indebtedness to that gentleman, and his assistant engineer Colonel Francis, for valuable information. Method of mea- surement of water as adopted by Water-Power Companies. a 1 Weir Measurement. — Thor« have been many experiments to determine the discharge of water over a weir, and numerous formula) deduced. Those of Mr. Francis were upon a large scale and under many conditions. His formula) are used throughout America by those employed in tho measurement of the flow of water. This method of measuring the consumption of water is the simplest, when applicable. 1 I \ h Measurement by the water wheels.— The discharge of the wheel, having boon detorminod under various conditions, it becomes a module. In Holyoke, this is the chief method of gauging the water used by the mills. A wheel, which has been erected and its discharge unknown, a weir is placed in the tail race, and its discharge, under different openings of speed gate, determined. A new wheel, before it is put in place, is taken to the testing flume, and its discharge ascertained. Mr. Herschol, tho Engineer of the Holyoke Water-Power Co. is at present erecting a new testing flumo, fitted np with all the appliances necessary to determine the discharge, efficiency, and other data connected with turbines. The practical operation of this method will show, that, in the present state of those matters upon the Canadian Canals, it is not applicable, as experienced officers would be required, nor are tho mills built in that perfect manner to render it practicable . An inspector visits the mills, several times, dui'ing the hours thoy are at work. There is a printed form in which his observations are to be entered. The level of water upon the gauges, in the upper and lower canal, between which the mills are situated, is first noted . In the room containing the machinery controlling the wheel, there is a glass tube graduated to one hundredths of a foot, connected by a pipe with the water in the forebay, the reading of tho level of water in this tube, is tho height above tho wheel. Near tho wheel pit, is another gauge connected with it by a pipe which gives tho level of water in the wheel pit, the difference between these two readings is tho head, or fall, acting upon the wheel. An indicator showing the distance tho gate, admitting tho water upon the wheels, is opened, is then read. Tho discharge of the wheel, under different conditions, as previously stated, being known, a diagram has boon prepared which shows by inspection tho consumption of water, when the inspector's returns are sent in. Every wheel in a mill has its diagram, with a number or letter by which the wheel is known, and tho name of the mill upon it. In the accounts rendered to the mills they have to pay for the power, not calcul- ated from the water vented, and the head acting upon the wheel, but the head or fall between the upper and lower canals. This is done to prevent the mills constructing, or at least they will suffer from, badly designed or ill-proportioned races, penstocks, &c., causing loss of head. It is evident that a system of this kind is inapplicable to the X'ude and slovenly state of things upon the Canadian Canals. Measurement by Gauging Plumes. — A full account, of the origin, and the experiments necessary to secure accurate data for this method, is published in " Lowell Hydi'aulic Experiments," from which the following information has been obtained. Three prominent Hydraulic Engineers were appointed in 1841, to ascertain tho amount of water consumed by the different corporations at Lowell. They enlarged a section of tho canal whose flow was to be determined, and formed a basin with a smaller depth of water, so that a system of paddle wheels used first in 1830, for measuring water, might be adopted. These wheels were erectec upon piers across the basin, accurately fitted to the bottom and sides, and revolved together. The quantity of water that was contained between the float boards computed, and the number of revolutions of tho wheels, in a given time, noted, the discharge of the canal was easily determined. As this method was temporary, and too expensive to erect each time the water passing through a canal had to be ascertained, rectangular canals lined with wood were constructed at certain places. The ratio of the mean to the maximum velocity of each canal was found by the means of these wheels, and a coeffloieut established for each flume. Mr. Francis on becoming Engineer of the Company, found this method not suffi- ciently accurate, especially, when certain disturbing influences acted upon the flow of water. A scrie-j of experiments were undertaken, to dotorraino the accuracy of computing the amount of water flowing through rectangular canals, from the moan velocity ascortaiucd by the time of transit, through the flume, of a loaded tube, extending nearly to the bottom, and tested at frequent intervals in its cross section from side to side. The discharge of the canal was found by wior measurement, formuhc of correction wore determined, the use of which showed, that, in rectangular canals lined with plank and smoothly planed, the amount of water passing could bo ascertained within two per cent, by these gauging tubes. The practical working of this system is fully described in "Lowell Hydraulic Experiments." Mr. Mills, Engineer of the Essex Water Power Co., has made numerous experi- ments upon piezometers or Pitot tubes ; the results of his experiments have not as yet been fully published. He uses them principally to ascertain the amount of water flowing through cylindrical iron pipes, which would bo difficult to determine otherwise. Mr. Mills has constructed a number of measuring flumes in the tail races of the mills; this system of measurement is adopted where practicable. Mr. Herschel, at Holyoke, intends using a current metre of his own invention for ascertaining velocities and measuring the amount of water used. To both of these gentlemen I am indebted for valuable information. The application of these methods involves considerable expense, but the results obtained would compensate for the outlay. At Lewiston it cost $20,000 to measure the quantity of water consumed by the mills ; they were found to be using 10 per cent, more than they wore entitled to ; it gave an increased revenue to the Water- Power Co. of $20,000 per year. With the older companies it has been shown that the cost per annum of a horse- power was $5.00 to the original grantees. This is no index to the value of power at present, as the land and power were sold together, and a certain Cost of Water-power. portion of the purchase money was retained, bearing interest, which was intended for the perpetual maintenance and operation of the works necessary for supplying the power without trouble or care to the mills using it. The present value of power is determined by the cost of " surplus water" in tho older companies, and what is actually charged in tho later at the present time. The following table shows these charges: — Horse-power per year. Lowell, Mass., surplus water up to 40 per cent, lessees are entitled to use $23 25 Lawrence, surplus water up to 20 per cent, lessees are entitled to use 18 50 Holyoke, surplus water up to 50 per cent, lessees are entitled to use 14 00 Lewiston, current value 12 50 Turner's Falls do 10 00 Ousatonic do 26 50 Westfield Power Co., steam and water 50 00 The average of the first six companies, gives say $17.50 for water-power in different parts of the Eastern States. As before stated, the Ousatonic terms of lease correspond more nearly with our circumstances, if instead of what is termed " permanent water," we substitute water for navigation, and for surplus water, the water supplied to the mills, subject to the exigencies of navigation and liable to be shut off for a week or two in the year. This Company considers the value of their surplus water 60 per cent, of the permanent, that would give $10.60 per hoi-se'power per year for water-power similar to that leased upon the Canadian canals. tho ; it in On the canals, lessees are permitted to use water during the whole twenty-four hours, but with the above companies they are allowed to draw water a specified time, varying from twelve to sixteen hours. AH water used outside thoso hours has to be paid for. In Holyoke, where there are u number of paper mills which run all night, there are regulations, and a tariff for water used at night. This fact increases the value of oui- power to any mills which run during the whole twenty-four hours. Stoam power. — It is thought in the United States that the average cost of Steam versus water- steam power, for manufacturing purposes, is, at least, seven times power. the cost of water-power. The average consumption of coal per horse-power per annum, for engines in Canada cannot bo determined. Engine and boiler-makers endeavor to bring this consumption below three pounds per hour. I was shown engines in Montreal which wore said to consume 2*19 lbs. per hour, a statement which is open to doubt. If we take three pounds per hour, which is below the average, an engine working say 10 hours per day for 300 days, would give 4^ tons per horse-power a year; at $5 per ton, it will cost $22.50 a year per horse-power for fuel, without reference to the greater working expenses in using steam, and the larger amount of capital required for engines, boilers, &c., than for water wheels, and the works necessary to conduct the water to them from our canals. In a table published in a " Treatise on Water-supply Engineering," J. T. Fanning, O.E., the cost is given of raising 1,000,000 gallons 100 feet high, both by steam and water power, at dift'orent pumping stations. Take an average of twenty-four using steam tho cost amounts to $10.87. An average of four stations using water-power gives $2.24 for raising tho same amount of water. At the Montreal Water Works, water is pumped from the same reservoir by both steam and water-power. Mr. LeSage, in his Eoport for 1880, gives the average cost for six yeai's of pump- ing one million gallons one foot high by stoam $0'12(}, by water 60*0136. As there are a number of mills engaged in the manufacture of cotton, upon the Canals, the comparative economy of these two powers may be con- sidered. Mr. Webber, an Engineer, who has had great experience in the machinery and ditl'orent matters connected with the manufacture of cotton, states in his " Manual of Power," a work from which I following statistics : — " The transfer of commerce to the Cities of New York and Boston had seriously crippled the prosperity of Newbury Port, Salem, and other towns along the coast oi New England, and it was hoped that the institution of manufactures would aid in restoring thorn to their former pros- perity. These towns contained a large unemployed female population, and it waa believed that tho abundance of labor, and the saving in freight of coal and cotton, would compensate for the additional cost of steam power over that of water ; but these hopes have proved fallacious, so far as all the steam mills on the sea coast north-east of Boston are concei-ned." Mr. Webber made a careful examination of the cost of power, at four steam mills. Taking the actual running accounts of mill in ordinary years, the average cost of the four mills for fuel, oil, labor, &c., per annum for a horse-power was $50.04, or with interest and depreciation on plant at $20.00, gave " a total cost for steam power of $70.00 per annum, which may be assumed as the average cost in quantities of from 2 to 600 horse-power, near the sea coast of New England." In this estimate $100 is taken as a fair average cost per horse-power for engine, boilers and setting, engine house and chimney. Engine would cost one-third, depreciation 10 per cent. Boilers " " " « 20 " Buildings and chimneys one-third " 6 " Interest, &c., 8 " Bringing the whole allowanoe up to about 20 " steam and water power in the man- ufacture of cotton. have taken the I " Tho Engineer" gives tho cost, in Encjland, for 100 horso-power engine with boilers and " plant" complete, as being $75.00 per horse-power, and tho cost of fuel, &c., at $50.00 per annum. I find that the mills, from which Mr. "Webber's cost of power is taken, consumed about six tons of coal per horse-power per annum, which cost nearly 87.00 per ton. Engineer's and firemen's wages, oil, &c., including delivery of coal, 08.00 per horse- power per annum. In making this application to Canada, I will take tho low price of $5.00 for steam coal, without reference to its quality or heating properties. Cost of a horse-power per annum in cotton manufacture : — Six tons per horse-power per annum at $5.00 $30 00 . Engineer, fireman, oil, &c 8 00 Engine, boiler, plant complete, $100.00 at 20 per cent 20 00 Total cost $58 00 Cost of a horsepower per annum in the manufacture of cotton by water-power upon the Beauharnois Canal : — Wheels, pits and flumes cost say $25.00 per horso-power at 20 per cent, interest and depreciation $3 00 Heating and dressing per horso-power 3 00 Montreal Cotton Company's lease H.P. per year 1 00 Total cost $7 00 I have no means of determining tho actual cost of any of these mills' wheels, pits, and flumes; tho head at Beauhai-nois is stated as 15 feet, tho best turbines in the United States would cost about $6.00 per horse-power under that head, leaving $19.00 per horse-power for pits, flumes, &c., which may be more or less, if it is doubled it would not atfcct tho comparison. Tho Stormont Cotton Mills, Cornwall, are paying about $1.00 per year per horse- power for the water they are entitled to, and 45 cents for what they se. George Stephen has eub-leasod at Cornwall, to tho Canada Cot in Co., power, I am unaware what they pay him. The Government receives 67^ cents per horse-power per annum for what is leased, and 27 cents on the amount used. The stock in these Companies has risen enormously. They are said to be paying largo diividends : doubly protected, by the tariiV, and by the nominal figure they pay for their power. The water-power formed by the fall at a lock is constant, the levels of the canal unvarying. At Cornwall and elsewhere where the tail races of the mills discharge into the river, they are liable to backwater and loss of power. It is contended, on this account, and with the liability of total stoppage, tho power is of little value ; as engines have to bo provided they might as well use steam altogether. That this is not the case can bo shown ; every horse-power of water used is a direct saving of so much fuel. In the following comparison I shall not take the low figure now charged for power, which would make the differences much lai'ger, but the assumed value, as previously staled, $10.50 per horse-power per annum. The following figures are not founded on the cost per horse-power per annum, in the manufacture of cotton in Canada, but assumed for illustration. In the Hudon Cotton Company, Montreal, the cost at that mill is said to be determined ; but for some reason tho manager refused this information. Those Companies leasing water- power from the Government would not probably furnish information for an enquiry of this kind. Take for example, a cotton mill manfactui'ing average number of yarn 14, with 12,000 spindles, requix'ing 300 horse-power. Ist. Cost by wator-powor per annum foi* running mill : — Water, 300 horso-powor, at $10.50 $3,150 00 Whoolfl, pitH, flumes, &c., $7,500, at 12 per cent 900 00 Incidental, heating and dressing 1,000 00 Total $5,050 00 2nd. Cost when mill obtains 300 horse-power from water, two-thirds of the year; loses one-half power one-third of year from backwater, tjsing steam as an auxiliary, provides engine power suflBcient to drive all tho machinery in event of stoppage : — Water, 300 horse-power, at $10.50 $3,150 00 Coal, 300 tons, at $5.00 1,500 00 Heating and dressing 750 00 Engineer, fireman, oil, &c 1,425 00 Engines, boilers and plant $30,000, at 12 per cent.... 3,600 00 Wheels, pits, flumes, &c., $7,500, at 12 per cent 900 00 Total cost as above $11,325 00 3rd. Cost when mill obtains 200 horse-poAver from water, two-thirds of a year, requiring 100 horse power of steam auxiliary; from backwater requires 200 horse- power of steam one-thii-d of year. Provides engine power to drive all the machinery in event of stoppage : — Water, 200 horse-power, at $10.50 $2,100 00 Coal, 800 tons, at $5.00 4,000 00 Heating and dressing , 500 00 Engineer, fireman, oil, &c 1,550 00 Engines, boilers and plant, $30,000, at 15 per cent.... 4,500 00 Wheels, pits, flumes, &c., $5,000, at 12 per cent 600 00 Total cost as above $13,250 00 4th. Cost of steam power for running mill, per annum — number of spindles, 12,000 ; horse-power required, 300 :— Tons of coal per annum, 1,800, at $5.00 $9,000 00 Engineer, fireman, oil, &o 2,400 00 Engines, boilers and plant, $30,000, at 20 per cent. . . 6,000 00 Total cost as above $17,400 00 as ith This comparison shows, at the low figure, $5.00 per ton for coal, there is an annual saving of %il2,000 between water and steam ; $6,000 where backwater has to bo provided for and engine power for all tho machinery ; $4,000 using steam all tho year as auxiliary power and providing for backwater, &c. if we substitute the actual amounts tho mills pay the Government for power, not one-third of the amount taken in this comparison, these figures will be much larger. A mill privilege, including water-power for this number of spindles, would cost, half a century ago in Lowell, $48,000, or at 6 per cent., an annual rental of $2,880. The Montreal Cotton Company, on the Beauharnois Canal, by the terms of their lease, for millsite and water-power, for this number of spindles, would pay $300 per annum. 10 Water power de- pendent on its si tu- atiou for value. Tho Storraont Cotton Company, for a mill site ar.d water power with nearly this number of spindloH, are paying 8270 per annum, and are enlarging their mill for double this number of upindleu. The value of water power depends upon itw situation. In Canada, with immoiiHO rivers, and rapids, constantly in view, the conunuMJty, naturally do not recognize its full importance, and oven tho>e » ting it do not r.pprociato the value, forgetting the cost required to obtain this power in any favorably situated locality. Tho general apathy in those matters has caused loss of revenue, waste of water, established an inditforont sot of mill owners, who, paying nothing for their power, use and waste water with rude appliances, it being immaterial what kind of machinery they may use, so long, as they obtain water for nothing, thereby preventing tho growth of other industries, and in the past have been, and now are, an absolute injury to navigation. I have shown, in a report upon tlio Lachino Canal, that these Water-powers were not a necessary attendant on the construction of a navigable canal, that there was an additional expenditure to create them; tho general jiublic taxed, ostensibly for navi- gation, in reality, for the benefit of private individuals, who return in revenue one- fourth, and the other three-fourths into their own pockets. Thirty years ago, the Government established tho value of water-power at £12 lOs. per run of stones, or $5.00 per horse-power per annum. As the country advanced, and this power became more valuable, tho amounts charged have become gradually less, until now there is obtained, under one dollar for a horse-power per annum. Without referring lo the canals, in the back country, where power is necessarily less valuable, take the Welhuid and St, Lawrence Canals, on the water highway, for some months in theyear, of a large portion of the continent, and all are, or will shortly be, connected with railway communication. None of tho VVater-Power Companies, in the Eastern States, are in a situation similar to Basin No. 2, Montreal, where tho ocean and lake vessels can come to the door of the mills. If the North- West meet the expectations of thecounliy under the present protective policy, the water-powers upon those canals will be of great value, and should not bo given as a bonus to manufacturers* who are considered to have all the protection thoy require. When a private company in the United States, with only 10,000 horsepowers, employs an engineer with a world- wide reputa- tion, expends large sumsof money in experiments, which are publish- ed for the benefit of the scientific world, it might b' considered the function of a Govern- ment in managing the immense water-powor created by their Public Works, to adopt scientific methods, and afford means oi educating the community in a department ■where there appears a lack of knowledge, in order that we might not be more than a half a century behind the former country. On the enlarged canals the Department should manage these powers in the same manner as a private company. The community being taxed for local and private benefit, the full value of the power should be demanded, and a revenue derived which would be some return for the large expenditure upon the canals. It would bo no difference in principle, and quite as logical, for tho Department to furnish boilei-s, engines, fuel, and lease the steam for $8,00 per annum per horse-power to a cotton mill, as to construct works necessary to furnish water to the mill and lease the power at one dollar per annum. Tho portion, of the expenditure upon the construction of a canal for navigation, that is chargeable to water-powers, is tho amount, it would cost to furnish the same power by works for that purpose solely, in the locality of the canal. This cost, or the capital, upon which the lessees of water-power should pay interest, being difficult to ascertain, a just precedent is what private companies consider a return for their capital, which has been stated previously. If, it is decided to cultivate this source of re'<''enue, provision should be made to enable the greatest amount of water, that could be drawn from the canals without injury to navigation, to be utilized for power. Water-power, under control of Canadian Govem- mentfUot to be con- sidered as a bonus to manufacturers, and should be man- aged'in the scienti- nc manner adopted elsewhere. ' ri Effects of the alienation of mill sites and water- power by the Oovemment I Thoro should bo no raonopolioa of tho wholo powor at any lock, or number of looks, for tho purpoHo of sub leasing or othorwiso; such was tho opinion of tho Com- missioners of Public Works thirty years ago, in reply to an application for such a privilege. They state : — " Whilo they cannot see thoro would bo a greater stimulus given ior tho employment of tho wutorpowers, by transferring the entire control of it to tho company, as proposed, the Commissionors are of opinion that it would bo highly inoxpodient that the Government should cease to have the full and unrestricted control of tho water now available on tho lino of this important work." (Welland Canal.) There should be established a fixed value for mill sites and water-power, and leased upon application ; if more than one application for a privilege miU sites and wa' Jt should bo oft'ored by auction, with this tixed value for an upset ter-power should price. If the whole power created by the enlargement wore thrown °' upon the market, or leased indiscriminately at what wasoffered, small prices might be obtained, an inferior class of manufactories established. As tho country developed industrially, thoro would be no power available for the important manufactories that might arise. As an illustration of tho importance of this recommendation, and the effects of tho alienation irom tho control of tho Government of their land and water-powor, I may refer to tho immense power that might have been obtained at the Chaudidre Falls, Ottawa; if developed in the manner tho water-powers in the Eastern States aro, it would bo one of tho largest powers in tho world. This powor is not under the control of your Department, but, leased, under tho same system, before the Department of Public Work was divided, it serves as an illustration. Tho Government having expended a sum of money for hydraulic'.darn'^) ^^'^ other improvements on tho south side, the land adjacent to the falls was sold and tho water- power leased. Now, when there is a demand for powor in tho city, it cannot bo obtained. There is a largo amount of power constantly going to waste, tho situation for mills has been sold and occupied juuncipally by saw-mills, and as piling ground for lumber. These mills only work one-half the year, tho other half the power goes to waste. They employ little labor, in comparison with cotton or woollen mills. They aro tho only description of mill which manufactures its own fuel. 8team is to them as cheap a power as water ; their monopoly of tho power is a direct loss to the productive capacity of the community. If the Government had retained control of this land and water, and the power developed upon scientific principles, Ottawa, occupying a central position and on the line of tho Pacific Eailway, when the West has a great consuming population, a class of manufactures might be established which would support a largo industrial population. The Government leased some 250 runs of stones, or 2,500 horse-powers. There must have been little value returned for expenditure, as the Inland Kovenue Eeport shows some 840,000 of rents in arrears. The head, or fall, is said to be from 20 to 30 feet. As the head decreases the supply of water increases, thus compensating for loss of power by tho greater quantity of water available. T. C. Clarke, Esq., in his report upon the " Ottawa Ship Canal," at a dam which ho proposed to build above the Little Chaudi^re, gives a discharge over the crest of 25,000 cubic feet per second at extreme low water, and 130,000 cubic feet per second at high water, which would give an unfailing power of some 62,000 effective horse- powers, and a much greater average power. The rates charged for power was $2.00 per annum per horse-power, which would give a revenue of 8124,000 per annum, or if all leased at its present value, say 88.00, 8496,000 per annum. The Government developed tho power upon the south side. If a scheme had been carried out of obtaining a power, at low water, equal to 10,000 cubic feet per second upon the south side, the same upon the north, and allowed 5,000 cubic feet pel- second to waste over the falls, we would have 9,000 cubic feet per second at the lowest water available for power and revenue, as these lessees are entitled to 1,000 12 Water-powors, oreatud upon tno Canadian canals become of impor- tance If tho tu- largod system of navigation foila to attract the ex^ ports of the western States. cubic foot per second. For any quantity of water used above thin, or wasted, tho country obtains no revenue, and tho oslubliwhmcnt of manufacturing induHtrioH pre- vented . The financial oiomont enters hirgoly into l!io (juo>Lion of wator-powern upon tho canals. I have stated elsewlioro. that, if a private company' wore building ihcm, tlio power formed by tho fall at tho locks would have been consiilorcd in the original dowign, and the Htiucturcs arranged for tho ovoiitiuil utilization of tho greatest quantity of water which could flow Ihrough tho canal withou injury to navigation. Although this has not been the case upon the Canadian canals, tho scheme that is ])ropoHed will have that object in view whenever applicable. A thorough system of managing these powers could then bo adopted, with tho principal aim of ultimately, as tho countiy proirrosses, deriving a revenue from them sunioioiit to prevent tho community from being taxed for tho main- tenance, as well as tho construction of tho canals. Tho revenue from the St. Lawrence and WoUand Canals has not this last year balanced tho expenditure for repairs and maintenance. The question of free tolls upon tho Erie Canal is before tho people of the State. Before long our canals will probably have this additional competition from tho rival route. We have, therefore, to consider what the country has gained by tho largo expenditure in tho construction of canalf , and what will be ttio results of the enlargement. IIow far tho comi)etition, of rival water routes and railro.ads, will affect the enlarged system. Tho old canals were never worked to thoii- full capacity, and wore largo enough for fifty years for the needs of Canada. The enlaigenient, may then bo considered, to have boon under- taken for the purpose of diverting, from other routes, tho transport of tho products, and imports, of tho Western States ; that is, for the profits to the country, direct or indirect, derived from the passage of a bushel of American grain, or other product, to the European market, through tho Canadian canals, and from what imports may return by the same route. We have never, in tho past, succeeded in diverting from the Erie Canal its trade, and in this respect are falling behind cch year. Tho decrease in tho transport of vegetable food between 18(J9 and 1880 was 7''ir6 per cent, upon the Wclland Canal, and the increase upon tho New York Canals, 82 per cent. ; iii heavy goods the decrease upon the Welland Canal was 40 per cent,, and upon the New York Canals, 14 per cent. Tho following figures, are round numbers, taken for comparison. Tho Canadian Canals, with a debt of say $20,500,000, contributed to tho revenue, in tolls from 1850 to 1880, say $10,000,000 ; in the same period tho New York Canals, with a debt of $16,500,000 in 1850, and in 1880 of $9,000,000, contributed to the State, tolls amounting to $89,500,000. They have decreased their debt nearly one-half, and wo have received one-ninth of the amount in tolls for our $20,500,000. Tho tolls to tho State of Now York from their canals, from 1837 to 1880, were $119,699,547, deduct- ing repairs and cost of collection, $45,098,240, there was a surplus of $74,601,307. The Erie Canal has boon termed a " ditch," while we have had a magnificent water-way with loss mileage of canal, and locks treble the capacity, bat wo have done no business, and proved that tlio conclusions and predictions of the promoters of the first enlargement were erroneous. Tho St. Lawrence route is tho natural outlet for a largo portion of tho United States ; previous to the construction of tho Erie Canal the trade of the lakes came to Montreal ; at the opening of that canal it was diverted to New York, and although we expended largo sums of money to regain it, wo have never succeeded. In 1811, tho Erie Canal Commissioners stated : — "Articles for exportation, when once afloat on Lake Ontario, will go to Montreal, unless our British neighbors are blind to their own interests." With reference to this opinion the Commissioner of Public Works, in 1851, states : — " The St. Lawrence has not changed its character nor lost the superiority it thus possessed, but forty years have passed away since the remarks of the Canal Commissioners; and we still remain blind to our own interests." 13 f After expatiating on the magnltudo, andgrnndour, of tlio navigation, which by a short artificial connection would command the trade between the interior and tho ocean, either by Quebec or New York, ho dircctH the attoiilion of llis Kxcolloncy to the result realized from the cunalH of Now York and Canada, tho ono yielding an amount of treasure wholly unlookcul for, tho other disappointing tho roaHonablo oxpccliitions of all its early projoctors, ho then states that an clloctual remedy to this condition of things is tho construction of tho Cliam))lain Canal. With our 815,500,000 more than necessary expended upon this routo, and a capacity to transport treble the greatest quantity that tho Erie Canal has over done, we are still in the same position, if not worse, as when the Cuminissioner of Public Works made his report thirty yciars ago. Wo wore not '' blind to our own interests," tho country expended largo sums of money, but the articles of exportation, liowovor, never tloated upon Lake Ontario, or went to Montreal. We aro now starting upon anew era of competition aijainst tho Erie Canal, with a debt of $0,000,000 and porhaj)s free tolls; while the Canadian routo has, when tho Wolland is deepened to 14 foot navigation and tho St. Lawrence to 12 feet, some 844,000,000 of debt. In Juno, 18 jO, T. C. Koefer, Esq., C.K., reported upon tho probable annual revenue of tho Provincial Canals, and assumed that one half of tho Westorn trade could be attracted throuufh the Canadian canals, and the increase thereafter estimated at 20 per cent, por annum, tho same rate of progress sustained by the Erio Canal for fifteen years. Tho estimated annual revenue from 1850 to 18fi0 was, from tho Wolland and St. Lawi'onco Canals, 818,500,000; or, taking tho same yearly revenue as taken for 18G6 and carrying down to 1880, wo would have as tho estimated revenue from 1850 to 1880, 843,500,000, against tho 810,000,000 that have been collected from all tho canals. Tho yearly estimated revenue from the Wolland and St. Lawrence Canals, Richelieu Eiver, &c., was to be, in l8G(i, 82,000,000 ; repairs and management, 8100,000; annual sinking fund, 81,^)00,000; annual surplus of revenue, 8300,000. It is slightly ditt'erent from tho financial exhibit of the canals in 1S81. Tho Com- missioners of Public Works, in tho report of 1851, rocommendod the construction of the Champlain Canal, and ono of their arguments was: — " Tho VV^el land Canal has increased in a greater ratio than tho Erie, and the Oswego route has progressed more rapidly than tho Buffalo one, simply because it shortens tho boat canal 154 miles, and increases tho length of tho voyage to the lako craft." Time has proved the fallaciousness of those assertions uiid estimates, and the money expended on the canal useless for the purpose intended. For tho requirements of the trade of Canada, and for as largo a business as has over been done uj)On the Erio Canal, it is evident that all that was required was the Wolland Canal with its 10 foot navigation, and a barge navigation on the St. Lo.wrenco oquul to the Erie Canal. We may therefore assume, as far as tho transport of the exportations of tho Western States is concerned, that all the expenditure upon this routo, more than was necessary to secure a navigation of this description, was thrown away, for it would have mot all the requirements of Canada for years to como, that is, until our exportations would equal the largo trade done by the Erie Canal, represented by 8119,699,547 in tolls for forty-four years. That is, for some 810,000,000 we would have had a better route than the Erie routo, suited to all tho requirements of Canada for tho last thirty years, and until our export trade increased to the extent mentioned above. If the cost of the present enlargement is included, we would have 834,000,000 expended, to carry out the original idea of diverting from New Y'ork to its natural channel, tho St. Lawrence, the exports and imports of the Western States. To discuss tho many causes, which prevented the canals from realizing tho expectations of their original promoters, is not necessary. The principal cause is political rather than economic. Tho great water highway, of the Lakes and the KiverSu Lawrence, being in possession of two foreign nations, with adverse political and commercial systems, its outlet being through the territoiy of a country, alien to the people, the transport of whose productions and imports is essential to make our 14 canal system a succoas, lias rondorod us urmblo to attract the exports and iraporta of the rich country goographioully, and economically, tributary to this route, and will in the future militate against the enlarged canalH. It is UHHertoU one of the cuumoh which enabled the Erie Canal to retain its trans- portation of the exports of the VVcstern tStales, was the largo clans of vessels plying tiotweon Chicago and Biillalo, which could not pass through the Welland Canal. This cause will still o))crate upon the enlarged canal, vessels, now when the water at the " Lime Kiln " crossing Detroit liiver, is high, load down to IB feet or 4 foot bolow Woliund ('anal depth, the Americans are still excavating at this channel, and it is stated, it is the intenlion and desire of those interested, to obtain a dojjth of 20 feet. The State Knginoer of Canals, New York, states in his hist report that every foot in depth bolow Welland Canal ci'pacity, the harbors and channels are deeponod, is an additional protection to the Krie Canal, that the Federal Government should be called upon to expend money lor this object, while the State should deepen or raise the water in the Erie Canal, to give another foot in depth, to meet the competition of the Welland Canal. We thus see if the large vessels above the Wollaiid Canal were such an important element before tho canal was enlarged, thoy will still continue to be, both for the Lake Huron and Lake Superior trade, as the Sault Slo. Marie Canal admits vessels of a laiger draught of water than tho Welland. The competition of railways to both tho JOrio and Welland Canals has to bo con- sidered. ]}y tho rupture of the agreement between the trunk lines of railways last season, it had tho otl'ect of reducing the receipts of wheat at liutlalo by Lake; from the opening of navigation up to 1st July, 1380, there were received 40,587,000 bushels, at a freight of 6c. per bushel, and for the same period of 1381, 20,3poar, either legally, or technically, to be of Present forms of lease should be changed. sufficient precision and clearness for the water-powers upon tho canals gontlomon managing Water-l'ower Comjianies in the l*]astern States, Now forms should bo drawn up Through tho kindness of tho I havo received, for the uso of tho Department, several of their which would be valuable as precedents in drawing up a now objections wore made by lossoos to any of tho stipulations. If it is your intention to adopt a new system, and obtain tho present value of blank forms of lease form, in case any Hydraulic lessees to be afforded the means of determin- ing tho best class of water wheels or motors. ])nwer, it might be advantageous, to all'ord hydraulic lessees tho o|)portunity, to introduce a better class of machinery or water motors than at present in use. Little attention has been paid to this subject in (janJida. Many men, who havo a loundry and machine shop, cont-idcr they can turn out a satisfactory turbuio, either by copying some description of wheel manufactured in tho United Stales, n' adopting the plans of somo individual, with a certain j)ractical knowledge of water wheels, who imagines ho has designed a wheel of high efficiency, when it may violate tho most elementary principles of hydrodynamics. Wheels manufactured in Cannda havo boon placei in the mills of hydraulic lessees upon tho canals at great < xponse, and have boon replaced by others of American manufacture. As it has boon proposed olsowhere to charge for power at 75 por cent, of tho theoretical power of tho water, lessees should not bo required to mako those oxponsivo experiments. If a now system bo adopted, ftnd a sufixoiout revenuo obtained, it would bo only duo tho hydraulic losaecs, that tho le Bemarks made a number of years ago by Mr. Francis applicable to the present condition of practical hy- di'aulics upon tne Canadian oanals. means be given them, to test the efficiency of the wheels they may purchase, the condition of which would bo, that they should giye a stipulated efficiency at the Government testing flume, which could bo erected at some central and convenient point upon the canals. This flume would protect the Canadian makers manufacturing efficient turbines, who at present have to send them to the United States to detei'mine their value in compari' on with those of other makers of turbines, and to obtam a certificate of their efficiency. It would also lead to the introduction of a better class of machinery upon the Canadian canals. The following remarks, made by Mr. Francis, with reference to the United States 27 years ago, are partly applicable to our canals at the present time:— "The northern regions of the United States of North America probably possess a greater amount of water-power than any other part of the world of equal extent, and the active and inventive genius of the American people, combined with the very high price of labor, has had a powerful influence in bringing this power into use. Nevertheless, the water-power is so vast compared with the population that only a small portion of it has up to this time been applied to the purposes of man. The great abundance of water-power in this country has had a strong tendency to encourage its extravagant use ; the machines used in the manufactories are usually great conpumers of power, the ability of a machine to turn off the greatest quantity of work with the least manual labor and in the least time has been the point mainly considered ; and whether it required a greater or less amount of power has been a secondary consideration. . The engineering operations connected with the water-power at Lowell have frequently demanded more definite information on certain points in hydraulics than was to be found in any of the publications relating to that science, and hence has ai'isen the necessity from time to time of making special experiments to supply the required information. Whenever such emergencies have arisen, the officers who have the general care of the interests of the several corporations, with a liberality founded on enlarged views of the true interests of the bodies they represent, have always been willing to defray such expenses as were necessary in order that the experiments might be made in a satisfactory manner." It is hoped, this and other reports will enable you to form some idea of the position practical hydraulics, to which so much attention has been given in the United States, occupies upon the Canadian canals. I have the honor to be. Sir, Your obedient servant, EGBERT C. DOUGLAS, Assistant Engineer, Railways and Canals. 11 i I i Ottawa, May 1st, 1882. Sir Charles Tupper, C.B., K.C.M.G., Minister of Railways and Canals. SiRt— In accoi'danco with your directions, I beg leave to submit the following report upon the wator-powora, situated along the lino of the Lachine Ciinal. I commence with a number of extracts from Departmental Reports, and Docu- ments ; these quotations might be considered of unnecessary length, were it not for the following reasons : You, prt)bably, are unacquainted with these records previous to Confederation ; the condition of things existing upon the Lachine Canal, before the present enlarge- ment, may be unknown to you. The principles, effecting the leasing of water-powers upon the navigable canals, the method, and manner, in which these leases were made, the results, and con- sequences of the system, or no system, which has prevailed, are unmistakably exemplified. Upon this canal, all the evils that pertained to that system, have been intensified, and are narrated year after year in Eeports; the authorities being apparently power- less to adopt any remedial measures. The Lachine Canal Enlargement is completed, in so far as the quantity of water flowing through it, available for hydraulic power, is concerned. It is hoped, this Report will demonstrate the necessity of a change, and will enable you to form an opinion of the policy, you may consider requisite, to adopt upon the enlarged canal. Extracts from Departmental Reports The first refei'ence to hydraulic powers, is in the Report of the Commissioners of Public Works for 1844: — " We have acquired a certain amount of land, adjacent to basins at Montreal, for enlargement of canal, when the works are completed some of this land can be disposed of by lease, or otherwise, for objects connected with the use of the canul ; and the amount to bo derived from this source, as well as from the water-power that can be created, and may be disposed of without detriment to navigntion, may bo estimated without fears at £100,000. " The Commissioners' Report of 1849 : — '' The waste weirs have now become neces- sary, not only to regulate the water in the Canals (Cornwall, Beauharnois, and Lachine) but to neutralize the disturbing effects of the. mills which have been built along the line." Commissioners' Report 1850 : — " All the disposable water, at the Montreal terminus, and at St. Gabriel, is now leased, and by the time the necessary erections, and machinery, are pi'cpared, much more enlarged means must bo afforded, to ensure a steady, and ample supply to them, without affecting the navigation." An estimate for the following year " connected with hydraulic privileges," £13,230. Appendix D, No. 5, W. 1£. Merritt, Commissioner, states : — " For procuring the money, debentures could be issued, at 6 per cent, interest, and for all objects con- nected with the St. Lawrence, the security should be, — 1st. Surplus tolls, after sotting apart the amount, specified for the sinking fund. 2nd. The hydraulic rents. In Commissioners' Report of 1851 : — " Connected with the hydraulic privileges, a largo waste weir of 100 feet length of overfall, for regulating water in the basin, has been built. The old locks have been converted into waste weirs, and by this means, a full supply of water kept up. The flume, around the Guard Lock, at 2 18 Lachino, intended to supply more water to the canal, ia about to be placed under contract. " The new works, which have thus been accomplished, on the line of the St. Lawrence canals, have boon productive of the greatest advantage to navigation ; und, moreover, have very materially assisted in the development of the water-powers, as the statement of water rents Avill clearly show." On the 25th March, 1852, Hon. John Young, then Commissioner of Public Works, also one of the lessees of hydraulic powers, issues instructions for the guidance of the Engineer of the Board, on his tour of inspection, contained in which is, — " While on the spot, Mr. Keofer will decide on the most expedient mode, of affording a greatly increased inflow of water to the canal, which is indispensable, to meet the wants of the trade, and the millers." Eoport of Commissioners for 1852, and^l853, speaking of Tate's hydraulic privilege for dry dock, to which four runs of stone were allotted, and sold under the report of the Engineer of the Department : — " It is to be regretted, that this property had been so disposed of, it is directly in the way of the i aprovements which the trade requires, and the works erected upon it, in their present state, must be con- sidered as a nuisance to the canal, the unsuitable construction of the works, causes a great unnecessary waste of water. But little progress has been made with the works of the supply gate, and channel, at the head of this canal, for the admission of a greater volume of water." The first complaint, about the Hydraulic powers, I find in the Department, is from A. Cooke, Esq., M. P., December 9th, 1854 : — " My attention has beeu drawn, to the fact, that thr granting of water-power, or mill privileges, on the I;achine Canal, is a great evil, and if persisted in, will become yet greater. The past season it was found necessary to restrict the number of lockages through the canal, for the purpose of retaining the water that would thereby be used, in order to reserve it for the use of mills, now in operation near its outlet, and it was accordingly decided to make the restrictions upon lumber, therefore, the lumber trade had to submit to the very great inconvenience of passing only three lockages per day, through the canal during the past season. To remedy this evil, I am informed it is the intention of the Gov- ernment, to construct a feeder at the head of the canal, to furnish the water that may be required. Should the Government construct a feeder of this kind, it is believed, that it will cause a current through the canal (when the mills are working) of not less than three miles an hour. * ^ic * * * Having said enough to enable you to see the very great eri'or, that will be committed if tua Government persist in granting mill sites, to be fed by the canal, or by opening a sluice at the head of said canal for the purpose of increasing the water-power." This letter was acknowledged, saying, the subject was now under the serious con- sideration of the Department. Mr. Cooke's estimate of excessive current will be substantiated by evidence sub- sequently. With reference to this year, Mr. Sippell, Engineer of the Canal, writing to the Department in 1859, states: — "In 1854, it was found impossible to furnish a suffi- cient supply of water, for the mills at this lock (St. Gabriel,) and at the same time maintain navigation. When called upon to use less water, they paid no attention, and the Superintendent was compelled to send a diver to spike the gates below water, to prevent them from stopping navigation." Mr. Sippell, to Secretary of Public Works, 22nd February, 1854: — " I beg to state, that yesterday afternoon there was great complaint made by the millers, for the want of water, the water in the canal being too low to drive their machinery. "Examinations, were immediately made, to ascertain the cause, and it was found that the facilities for supplying the canal at L ichine were not sufficient. The gates in the old lock, and all the valves in the onlai-ged lock were open, (thus showing the necessity of having the supply weir, and raceway around the Guai'd Lock completed at an early day.)" \ 19 3ed under of tho St. tion ; und, powers, as lie Works, mce of tho ■ While on ; a greatly e wants of hydraulic under the s property which tho ist be con- ;s, causes a the works ission of a irtmont, is eeu drawn, line Canal, ison it was he purpose it for tho ed to make to the very nal during f the Gov- r that may is believed, ing) of not aid enough overnment uice at the arious con- idonce sub- ting to the ish a suffi- same time attention, low water, " I beg to ors, for the cry. was found The gates lowing the completed Commissioners' Report, 1856 : — " The faciliti es for insuring a greater, more uni- form, and more constant supply of water, at the head of this canal, are much increased by the construction of new head gates, and raceway, on the south side of the Guard Lock. Notwithstanding, this important improvement, the demand for water for tho extensive machinery, already established, and which may yet be established, upon the line of this canal, as well as the necessity of affording greater facilities to the trade, render the widening of the portion of it, through the rock cutting, near the Lachine Terminus, absolutely indispensible." Commissioners in same Report, speaking of the Cornwall Canal : — " Several applications have been made for the leasing of hydraulic powers on the line, of this canal; but the very serious inconvenience to the trade, repeatedly, and annually com- plained of, as to the manner in which the water is taken from tho canals generally, rendoi'B the further establishment of water-power, on this as well as the other canals inexpedient, until an appropriation should be had, for the construction of certain works, connected with a better mode of letting out the water, so that it will not be in the power of the millers, to lower it below the navigation depth . The attention, of the Chief Engineer to the Department, has been directed to this subject, and his report thereon is hereunto appended . " (The Report here alluded to, is not appended.) Commissioners' Report, 1858 : — "To enable certain improvements to be made, the principal of which, was the construction of a regulating weir through tho raceway, on the south side of the canal above Lock No. 3, whereby the water passing to the manufacturing establishments can be controlled so as to prevent the necessary naviga- tion level of the water being drawn down, &c." Commissioners' Report, 1859 : — " The river having continued high throughout the season, there has been no diflBculty in keeping up the supply of water to the mills, but such is the increase of machinery, and the use of water, by the mills estab- lished on the line ot canal, that it is voi much to be feared when tho river falls again to its ordinary level, there will not be .» suflSciont supply of water to keep them all going, without admitting a current in the canal, that would become a serious impedi- ment to navigation. The enlargement of the rock cut ought to be proceeded with at an early date." Commissioners' Report, 1860 : — " Owing to the inordinate draught of water for milling purposes, at Montreal and Cote St. Paul, much difficulty has been experienced especially during the period of low water, in keeping up the different levels to tho proper height." Mr. Sippell, in his annual report says the above " difficulty, arises fi-om the large amount of water, used for milling, and manufacturing purposes, on tho south side of No. 2 at Montreal, which, aa near as I can determine, has increased fully one-fourth during the current year." (There had been no more water leased) . " The large increase of tho amount of water now used for milling purposes, renders the necessity of constructing new wiors at locks Nos. 3 and 4 much greater than at any former period. The extension of the pier above Cote St. Paul cannot any longer be dispensed with ; this extension is required to protect vessels from being drawn into the head of the old locks, by the strong current formed by the large amount of water passing through them, for keeping up the levels below." The Department becoming aroused, a letter was addressed to Mr. Sippell, 28th September, 1860 : — " It being desirable to ascertain correctly, the actual quantity of water used by the Lessees of water-power, on the south side of basin No. 2, Lachine Canal," he is requested to supply data for calculating the quantity. On the 20th October, 1860, Mr. Sippell sends a table of dimensions of orifices, apertures, kc, necessary tor the purpose. He calls attention to leakage through the flumes, and dock wall, also to the large amount of water, used by Messrs. Tuit in filling their dock, which amounts to 454,024 cubic feet, while it would require only 115,000 cubic feet if the dock were in proper oi*der. By referring to the extract, from the Annual Report of 1852-3, this dock, it will 2J 4 20 be soen, was charactorized as a nuisance, and allowed to continue in that condition for oi^lit yoai'H, iillhougti the iiitorcBts of navigation wore suiforing. Commisfiionei's' Eoport, ISGl : — "On the second basin above tho outlet, which is from '20 lo 22 feet on tho usual HUinmer level of tho river, surplus water sufficient to drive sixty-five runs of mill-stones, has boon leased, tho greater part of which is in use. Those leases, however, neither give the sectional area of the volume of water, nor the meusuio of ])!»wor applicable to a run of stones." (It will be shown subso- quotitly that there wore regulations, specifying clearly tho amount of water there, althouuh not incorporated in the lease, they were road at tho sale of tho majority of tho lots, and binding). " This omission has led to the consumption of such a large quantity of water, as has already intorferod, and threatens still further to seriously interfere with tho efficiency of the canal, as tho Lessees persist in using, and contend they have a right to use, Buliicient water to propel the number of raill-stones stated, in their leases, irrespective of tho volunio of water, or power, required for that purpose. " To supply the demand for water, produces a current, of from two to two and a half miles per hour in tho narrowest part of the canal, and draws down the level above lock No. 4 from 10 to 12 inches, making the surface declivity, between that place and Lachine, about two inches to a milo." Throughout the season of navigation, the roach between locks Nos. 3 and 4, can seldom bo maintained at its proper height. During tho past season of navigation, 47 1 vessels were detained an average of 2 hours and 10 minutes, and 59 were detained over 5 hours. " These difficulties will be, to some extent, lessened, but not removed, on tho completion of the works now in progress; the only effectual remedy being strict economy of the water, by the use of a bettor class of flumes, and limiting tho open- ings through which the water is supplied to the wheels, and also the outlets from them, or establishing some definite measure of power. Unless some effective means be adopted, to remove this impediment to the navigation, the facilities which iho trade demands for the speedy passage of vessels of full draught cannot possibly be afforded. " The great current created in tho canal, brings with it much silt, which, at many places, forms bars, and shoals, in the channel, which has annually to be removed. " For the past two years, a steam dredge has boon constantly at this class of worlc, yet such is the rapidity with which tho deposit accuomlatos, that several places, dredged below tho ordinary depth in 1861, must bo again cleared out next season. " Vessels have boon frequently forced out of the channel, by tho great indraught of water, at the upper entrance of lock No. 4, a pier in detached pieces, has been built obliquely to the lino of canal, which has, in a measure, removed the difficulty," It is, however', lo be prosumei that all tlio advantages to be derived from tho enlargement of the " Eock Cut " to 100 feet, bottom width, and tho construction of this regulating woir, will be, as far as practicable, confined to navigation, and will form no pretext for the present inordinate consumption of water for milling pur- poses, still less for increasing it. Ml". Sippell, in letter to Department 5th April, 18G1, states, that a surface declivity, of over two inches to tho mile, is created during the season of navigation. *' During last winter they had great difficulty, in getting water at the head, and the draught at tho locks, so great, as to form a surface declivity of from 10 to 20 inches on each level." Mr. Sippell in letter to Department 12th September, 1861 : — " The water is kept, at the depth of ten feet, on the lower mitre sill of Guard Lock at Lachine, from which the draught is so great at Cote St. Paul Lock, that the water is only nine feet in depth at upper entrance, causing a surface declivity of one foot between tho two locks." " All the mills above lot No. 9 are using water in tho same proportion. I would therefore suggest, that tho lessees of lots 9 to 19 inclusive, be requested to shut off' say t condition t, which is nfficiont to which is in of water, own subao- mtor thoro, majority of f water, as with the avo a right hoir leases, t two and a n the level (tweon that 1 and 4, can navigation, re detained ved, on the being strict g the opon- utlets from !tive means which iho possibly bo which, at )0 removed. ss of woj'k, aral places, t season. indraught s, has been difficulty." I from the traction of n, and will illing pur- a surface avigation. id, and the ) 20 inches er is kept, hine, from only nine tweon the , I would hut off say 21 one-eighth of the water they are now using, or so much ae may be necessary to prevent them from drawing the levels below nine feel." Mr. Sippoll, in his annual report for 18G1 : — " Groat detention has been experi- enced on the reaches below locks 3 and 4, in consequence of luw water, caused principally by the mills on the south side of Basin No. 2." "The basin, has been gradually filling up, ior years, the current is even so great, the liu-gost portion of the silt, uiid sediment, llowing in the canal, is brought down to this basin, where it settles, and some portions that wore dredged in 18G0, will require clearing again in 18G2." Commissioners' Eeport of 1862 : — " The enlargement of the rock cut was com- pleted last spring. The regulating weir, and raceway, at Lock No. 4, were con- structed. These improvements have been undertaken, solely for the benefit of navigation, which has been, and still is, so much interfered wit!i by the excessivo quantity of water drawn off for mills, that it is absolutely nocossary they should be confined to that object." April 3rd, 18()2 : — A letter is addressed to the Chief Commissioner of Public Works signed by seven of the principal forwarding firms, from which the following quotation is talcen : — "For some years past the navigation of this canal has been scriouisly affected, by the great flow of water drawn through the canal, for manufactur- ing purposes, so that the current at the bridges, and narrow points, has been such that vessels pass with considerable hazard, and difficulty, and often with delay, to the serious loss of those engaged in the business." "The great quantity of water used by the mills also causes fluctuation in the depth of water, often drawing it below the depth required for navigation, leaving vessels aground for hours in the canal." " It is therefore quite evident that the quantify of water used, for mill purposes, on the line of the canal, is much greater than should bo allowed, and has converted, what was originally intended for navigation purposes, into a mill race, which is detri- mental to the trade of the country. We would therefore pray, that steps be at onco taken to limit the amount of water made use of for manufacturing purposes." Mr. iSippoH's Annual Report for 1-'G3: — ''The expenditure for repairs, and maintenance, is necessarily much larger^ than for any other division of the St. Lawrence canals, caused by the strong current created in supplying water for the mills, the" &C., &c. " A large portion of this expenditure is, however, caused by the inordinate current produced in supplying mill power, which tends to render vessels unmanage- able, washes the banks, fills up, and forms bars, in the channel, and basin." Commissioners' Ileport, 1863 : — "The excessive current produced, in the canal, by the inordinate supply of water used, for milling purposes, at various points along the line, has led to so much difficulty in its navigation, as to be a heavy tax upon the trade." " Eopresentations to this eftect, having been frequently made, by forwarders, and others, this Department, several years ago, took steps to limit the supply to what was then in use. " But, notwithstanding, the uncertainty of furnishing even that quantity at low water, and the well known injury inflicted upon the trade, some of the lessees claim the right to a greater supply than they at present receive, although they have already fully double the amount of power considered available, at the time when the leases were granted." " It would therefore appear, that the interests of these parties, are directly opposed to the successful, and unimpeded navigation, of one of the most important of the canals, and with a view of settling these matters, the whole question is now before the Provincial Arbitrators." The arbitrators referred to above met in 1863. la evidence before them, Mr. Eankin, a pilot, states: — " I think since 1854 we have found a great current in the Laohiue Canal. This current is very injurious to the navigation. It is more like a mill race than a canal. The Lachine Canal is more dreaded with reference to injury of vcBsels than any other." Eight forwarders, and navigators, gave similar evidence . Mr. Sippell in evidence, at the same time, states : — " The water for several years has been gradually raised below the Guard Lock from 9 ft. to 9 ft. 6 in. and 9 ft. 10 in. on the lower mitre sill. The object of this was to force water into the canal to sup- ply the mills. There would have been enough without this for the navigation, had not the mills drawn off such a quantity. The millers continued to draw water as long as they could get it, without reference to the convenience of navigation. " Mr. Sippell in his annual report published in Commissioners' Beport of 1864 :— " The navigation of the canal has been rendered difficult, by the draught of water re- quired for propelling the machinery connected with them, so much so, that great complaints are made by forwarding interests. Mr. Sippell in Eeport 1865 : — " The cost of maintaining these banks and walls is largely increased by the strong currents and by the passage of rafts ; the currents wash the banks, form sand bars on the bottom, and undermine the walls, while the rafts drag and tear them down . " The Commissioners' Eeport of 1867 : — The last Eeport on the Public Works of the United Provinces of Upper and Lower Canada, supposed to be a summary and retrospect, of every thing done previous to Confederation, thus speaks of the hy- draulic powers upon the Lachine Canal: — "The propriety of leasing the surplus water of the canals is questionable. It has been urgoa in its favor, that manufacturers are, by this means, placed in immediate connection with the navigable waters, that it is a great advantage to mill owners to find ready for their purposes, an available water power, and that it gives, at once, a direct revenue to the Government, in the shape of rent, as well as an indirect revenue arising from the increased general prosperity." Admitting these advantages, there are, on the other hand, certain drawbacks. One of the greatest of these is the increased current created in the canal, and the con- sequent inconvenience to vessels passing through. This inconvenience is so much felt at the present time, that the evil far outweighs all the advantages, — yet how much more must it be as the traffic through the canal increases. The facilities afforded to commerce by Mills and Factories, so situated on Canal Basins, or Docks, as to be accessible to shipping, is undeniable; but it is equally clear, that it is most desirable, that the water power should be drawn from othei-, sources than the Canal itself, except in places where the quantity of water required, is too limited, to make it of any importance from what source it is derived." Minister of Public Works Report of 1868 : — " Of late years, the waterhasbeenso low that much difficulty has been experienced in supplying this canal with sufficient water to maintain the requisite height on the mitre sills of the locks. After considering various modes of remedying the evil, the Engineers of the Department have proposed to extend a pier from the head of the canal out into the current, with a view of embracing a larger volume of water, and conducting it into the canal (contract for which was signed 28th December, 1868. Mr. Sippell in above : — " The present openings, for admitting water into the canal at Lachine, are not sufficient to keep the canal at navigable height, and sup- ply water to the above mentioned mills, after it falls below twelve feet on the upper sill of the Guard Lock." Means for admitting a larger quantity, during seasons of low water, should therefore be provided. On the 16th June, 1868, a letter is addressed to the Department signed by eight of the hydraulic lessees. They call the attention of the Minister " to the necessity which exists in view of the present low state of the water on the St . Lawrence, in obtaining a better supply for the mills." They wish another supply weir constructed at Lachine. " The Government cannot of course expect, that under the circumstances the lesses will be able to pay for that water which is not furnished to them. They offer to advance $33,000 for its construction to be deducted from the hydraulic rents." Exceedingly magnanimous offer, considering they had been using for the previous twenty years, four times as much water as they had any right to, and in direct viola- !0 to injury rovidonco. voral years 9 ft. 10 in. mal to snp- gation, hud ttor as long of 1864 :— of water rc- I that groat and walls is ho currents alls, while ic Works of oamary and 1 of the hy- the surplus nufacturers vators, that n available aent, in the sed general drawbacks, ind the con- is so much 1, — yet how 3d on Canal is equally rom other, r required, 1." has been so h suflficiont aeers of the )ut into the sting it into )r into the it, and sup- 1 the upper ; seasons of od by eight le necessity awrence, in constructed cumstancos em. They lulic renta." he previous lirect viola- 28 tion of the conditions of fiorao of the leases, which provided, that any water used over a specified amount should be paid for. Minister of Public Works, 1869: — " The inconvonionco, and obstruction, to navi- gation, resulting from the too liberal use of water for milling purposes, is particularly felt during these seasons of extraordinary low water." Mr. Sippell in same report : — " On the 31st October, the gates in the Guard Lock at Lachine, were opened during the day, which increased the supply and gave general satisfaction to all parties. The gates wore kept open until the close of navigation, but as great inconvenience was experienced, by the millers and manufacturers, from low water, it was considered advisable to re-open them, in order to aftbrd, as largo a supply of water, as possible during the winter. A considerable risk attended the proceeding." Supply weir, mentioned above, for the benefit of the mills was placed under contract. Minister of Public Works Eoport, 18V2 : — " From tho month of Soptomber the St. Lawrence Eiver was so low, that the gates of tho Guard Lock had to be opened during the day, until the close of navigation, to admit tho greatest possible flow of water to supply the canal and mills." The now supply weir at Lachine was finally completed. Mr. Sippell in samo Report : — " During tho months of July, and August, tho force employed, by the contractor upon tho supply weir, was not considered sufficient to complete the work before winter, which was tho cause of serious complaints, by lessees of water power and other interested parties. Minister's Eeport, 1875 : — " Tho supply of water for driving the mills, owing to the low level of Lachine, was short during the entire winter." We have now given, for a period extending from the time tho water powers were first leased, until about the commencement of the present enlargement, the Departmental record of the administration of the canal, and these powers. Years ot protestation and complaint without change or remedy. Authority for Creating Water-Power upon Laohine Canal. It may now be asked, by what authority, they have been engrafted upon tho canal, and the extra expenditure necessary to create water-powers made? In the Act of Parliament authorizing the construction of tho original Lachine Canal, there is no refeience to the creation of water powers upon it, nor in tho Act 4 and 5 Vic, Chap. 28, which appropriates a sum of money for tho improvement of the navigation of the River St. Lawrence, under which the Lachine Canal was first enlarged. At the Union of Upper and Lower Canada, the Act, constituting a Board of Works, and defining its powers, has no allusion to them. In November 1844, the Chairman of the Boai-d of Works obtained the authority from the Executive Council to sell, or lease, water powers upon the line of the St. Lawrence Canals. There were, at that time, urgent applications for power upon the Lachine Canel. No action was taken upon this Order in Council, wnether, because it was ultra vires, or otherwise, it does not appear. A new Act, concerning the Board of Works, 9 Vic, Chap. 37, assented to in June 1846, has a clause, empowering the Commissioners of Public Works to lease water- powers, created by the construction of any public work, under the authority, and sanction, of the Governor in Council. Mr. Ban-ott, the Engineer of the Lachine Canal, had made a Report upon the water-power available upon the Canal in 1844; this report was transmitted to Council in October 1846, and authority given for tho sale of three mill privileges. I cannot find, it was the intention of Parliament, to expend money, on the creation of water-powei-s, it being voted for constructing, or improving, a canal for navigable purposes. Neither had the Board of Works authority to create them. Upon the Lachine Canal they wero the result of an extra expenditure, above that 24 required to construct a Ctannl for navigable purposes. Money would not have been voted for this local object, if it had been separated from navigation. To illustrate this principle, at the present time, what occurred in the past, upon the Lachino Canal, take the Cornwall Canal ; the openings at the head of the canal, and the weirs for passing water around the locks, are sufficient to supply all the water required for navigation, if the canal wore onlr.rged, and worked to its full capacity. The mills upon it, are drawing from the canal, more water than is to the interest of navigation, and want more, they pay nothing for their power, practically speaking. If an amount wore placed in the Estimates, to build a supply weir at the head of the oanal, four times the capacity of the present one, and enlarge the waste weirs around the locks, it probably would not be voted, if known it was for the exclusive benefit of a few private individuals, to present them with cheap power, thoy already using more than they have right, or title to. But when stated it is required for navigation, that requirement being caused by the mills, it corresponds to what has occurred upon the Lachine Canal. In the construction of a canal, the community would only consent to supply water-power iy private individuals or localities, on the understanding that full value would bo received for any extra expenditure necessary. It is asserted manufacturers are encouraged, and that there are indirect advan- tages, these are local, and are similar to the ripples, from a stone cast into water, they become invisible at a short distance. The distant public contribute the same amount to the creation and maintenance, as the Lessees of hydraulic powers, or the locality to which they may be some benefit. On the Lachino Canal, the private interests of the Lessees were of greater importance than the public interests of navi- gation. The Department had seemingly little control over this canal, as the same story is repeated, year after year, in reports, and nothing effectual done. There was an unnecessary expenditure upon construction, and an increased annual cost entailed for repairs and maintenance. The mills were an incubus upon navigation for some twenty years. In one season 630 vessels were detained for periods of from one hour to six and three- quarters. If there had been any recourse, the demurrage might have exceeded the hydraulic rents for some time- The Lessees contribute say $12,000 a year to the revenue of the canal. Ten per cent, is little interest, on the proportion to bo considered as the capital invested in water-power, including the increased expense for maintenance, renewals, &c. Previous to the present enlargement there was expended upon the Lachine Canal, $2,600,000, for this exiienditure, according to the evidence of those navigating the canal, the country had provided a mill-race for nineteen lessees. The $120,000 and the mills were of greater consequence than $2,480,000 and navigation. It has now to bo decided whether, upon the enlarged canal, this capital shall have the proportion of $120,000 to $9,180,000, and whether the past shall be inflicted upon its future. For a clear understanding of this subject, a history of these water-powers from their sale, or lease, appears necessary. The legal questions involved, are beyond my province. In a necessarily imperfect examination certain facts have been obtained, which might bo useful to the legal authorities in an investigation, when action will be taken upon the leases. Upon this canal, there are nineteen mill privileges, and one mill privilege, with a dry dock attached, at the Montreal terminus ; at St. Gabriel lock, and at Cot^St. Paul lock, the entire surplus water, and lands, not required for canal purposes, are leased at each place. Any illegalities discovered in the original instruments may have no effect, as occupancy has been recognized by the Government, and rent accepted for a number of years ; but if any surreptitious advantages have been taken, those facts may be of service when the renewal of the leases is claimed, upon the conditions inserted in them. FaotB for the legal authoritieB. 25 havo been past, upon tho canal, , tho water I capacity. intoroHt of speaking, oad of tho lira around ) benefit of ising raoro ation, that 1 upon tho to supply , full value 3ct advan- Qto wator, tho samo ors, or tho ho private ts of navi- same story are was an in tailed for i. In ono and threo- coeded tho Ten per ivostod in Previous ^2,600,000, canal, the tho mills now to bo portion of ire. wers from imperfect might be ion, when es, and one Montreal water, and > eflfect, as a number may bo of iserted in An Order in Council, No. 354, 16th October, 1846, by the powers conferred by the Act 9 Vic, chap. 37, authorized tlio sale of throe mill sites, the terms of lease to bo submitted to Council for approval, by tho CominiHsionerH of Public Works. Tiiis order was based ui)on tho report of Mr. liarrott, then Engineer of tho canal. From the action taken at that time, it would appear, it was coiisidoroJ nocossary, in order to comply with tho Act, to obtain, first, the authority from Council to sell, and second, tho sanction of tho loaao af'or sale. Those lots Nos. 1), 10 and II, wore sold by auction upon tho 23rd November, 184G. At this salOji-ogulations, conditions, and definitions, of Mr. iiarrett, wero road, and were binding upon the purchase. Lot No. 8, in addition to tho above, was sold at tho samo time. A certificate of tho sale was sent to the Department by the auctioneer, stating that, upon tho 23rd November: — "Tho above conditions (Mr. Barrett's) wero read to the audience called together by pul)lic advertisement, and the leases were adjudged subject to the above conditions, as follows : to Lovott, Lot No. 9, to Peck, Lot No. 10, to McDougall, Lot No. 11, to Ilarvoy, Lot No. 8." Tho loasosfor these lots wero not executed at that time. By an Order in Council, No. 3*78, 12th December, 1846, Lot No. 12 was authorized to bo sold upon tho 12th January noxt. On this day tho same conditions were read and tho lot awarded to Throne & Howard. An Order in Council, No. 4G2, 29th April, 1847, granted authority for the sale of Lot No. 13. On the 22nd May, 1847, tho samo conditions as at previous sales, with some changes, wore road, and tho lot sold to Ira Gould. At the request of tho com- pany present, and with tho consent of tho Commissioners of Public Works, the adjoining Lot No. 14 was put up, and adjudged to Mr. Gould, upon tho same condi- tions. On tho 3rd July, 1847, the Secretary of Public Works transmits a draft form of lease, with Mr. Barrett's conditions attached, for those throe lots, and requests " the sanction of His Excellency in Council for perfecting tho samo in accordance with the Act 9 Vic, chap. 37." On the 16th July, 1817, tho Committee of the Executive Council advise His Excellency to approve of the same. The lease for Lot No. 8 was not executed until the 7th September, 1849, — Lot No. 10, 10th March, 1848,— Lot No. 11, 16th October, 184S. None of those leases, were submitted to Council, as specified by tho Order in Council under which they were sold. They are weaker leases than approved of by Council. No reference was made to Mr. Barrett's conditions read at the sale, which defined the amount of wator each run of stones was entitled to, and there wore other important omissions which will be alluded to hereafter. Lot No. 8 was leased to James Harvey, and transferred to Thomas Peck & Co., without consent of Department. E. ^ Lot No. 9 was leased to James Harvey and transferred to Thomas Peck & Co.; acknowledged March 5th, 1856, by Department. Lot No. 10 was leased to Thomas Peck, now Peck, Bonny & Co. Lot No. 11 was leased to James McDougall, who now occupies it. Lots Nos. 5, 6 and 7;-'0n the 16th October, 1849, Mi-. E. E. Gilbert applies for three lots of land with water-power. It is recorded in the minutes of the Board of Works, Hon, Malcolm Cameron, Commissioner, present, " in compliance with the letter of E. E. Gilbert, tho Secretary to prepare a lease of mill privileges." On the 20th December, 1849, Secretary of Board of Works, to E. E. Gilbert, saying : " I am directed to enclose form of lease for signature, of Lots Nos. 5, 6 and 7, Lachine Canal." There is no Order in Council authorizing this lease. On the 4th August, 1851, Mr. Gilbert assigned his rights, and interests, in Lot No. 7, and on 17th May, 1853, in Lots Nos. 5 and 6, to W. P. Bartly. On the 3rd of September, 1854, he was discharged of all claims, and demands, a new lease was executed between the Commissioner of Public Works and W. P. Bartly, for LoIh Nos. 5, 6 and 7, and in addition tho W. ^ No. 2, and Lots Nob. 3 and 4. I cun lind no authority for this loawo. ThcHO lolH vvero sold by J^horitfs walo on tho 2ntli March, 1864, to a Trunt and Loan Company, who HubHcqucnlly Hold thorn to Iho pnrtloH now occupying thorn. Lots 15, id, 17, 18 and 19 ; Tate's Dry Dock and mill privilogoH, tho St. Gabriel water-powor, wore loaHod in February and March, 1861, by the CommisHionor of Public Works. There is no direct authority for these leases. Certain transactions, with regard to some of these leases, and affecting tho whole of them, will bo dealt with more fully subsoquontly. It would appear, that the Commissioners of Public Works had no more power, than any private individuals, to lease property belonging to tho Government, if tho terms of the Act wore, at tho time, not fully complied with. This Act 9 Vic. chap. 37, spocilies : — " Tho Commissioners of Public Works shall have such powers, authority, and capacities, as are provided by this Act, and no other powers, authority, or capacity, whatever." The clause, in the Act, defining the powers, with regard to tho sale of land, and leasing of water-powers, is summarized : — " Governor in Council may dispose of such property, as may not be required," and only under the authority, and sanction, of tho Governor in Council. Tho loaso of only throe of these Lots, conform to the Act. The Act also states : — " That tho Chief Commissioner, for tho time being, shall bo the legal organ of tho Commissioners, and all writings and documents, signed by him, and countersigned by the Secretary, amino others, shall bo hold to be acts of tho said Commissioners." Tho leases of February and March, 1851, as far as examined, are not signed by the Secretary, but are notarial instruraoyts, executed oy the Commissioner of Public Works, without authority of the Council, and lacking tho countersign of tho Secretary. Lot No. 15 was leased to Biglow & Co., and was transferred to Pillow, Horsey & Co. , without consent of Department. Lot. No. 17, leased to W. Lyman & Co., now Lyman, Clare & Co. Lots Nos. 18 and 19, leased to Grant, Hall & Co., occupied at present by the Montreal Warehousing Company, without consent of Department. Dry Dock Lot, &c., leased to G. & W. Tate, sold by Shoi"itf's sale, now occupied by George Tato, Ferrier & Co. and Mooney & Co. St. Gabriel water-power, leased to Young &, Gould, still in the name of Young & Gould. An Order in Council, No. 1,144, 11th and 12th October, 1852, gave authority for sale by auction, of tho water-power, at Cote St. Paul Lock, it was sold upon the Ist February, 1853, to W. Parkyn, and tho lease executed in Aug., 1860. The property was transferred to John Frothingham, without consent of Department, now the estate of John Frothingham, Tho loose, and indefinite manner, in which many of these leases were drawn up, has led to disputes, and assumptions, on the part of the lessees. It is necessary, with regard to tho professional gentlemen, who, at the time, would have the authority by their reports, and opinions, to express tho intentions of the Government, to have that date fixed. From December, 1841, until Juno, 1846, the Hon. H. H. Killaly, was Chairman of Board of Works. Under a new Act, he was Assistant Commissioner until October, 1848, when he was placed in charge of the Welland Canal; he became Assistant Commissiouer again in 1851. During tho construction of tho Canals there were Engineers over each in an independent capacity ; thoy reported to, and received instructions from, Mr. Killaly, who was an Engineer of ability. From 1841, until the summer of 1846, Mr. Keefor was Engineer of Board of Works ; ho was then transferred to the Welland Canal, as Engineer of that work, and Professional gen- tlemen employed by the Government and date of em- ployment. 27 Ota NoH. 3 TruHt and Ilium. St. Gubi iel isHionor of nnHiictiuiiH, 1 bo doall )ro power, )nt, if tho lie Works s Act, and ' land, and 3H0 of such Lion, of tho ilso Htutcs : gan of tho ntorsignod liwHionors." bignod by of Public jn of tho v^, Hersey nt by tho ocoupiod ' Young & thority for on the 1st 3 property now the drawn up, tho time, inions, to that date •n. H. H. w Act, he n he was Assistant ich in an r. Killaly, [ Board of work, and wan appointod Engineer of Board of Works in Docombor, 184R, a position ho occunied until 1853. Ho, subaoquontly, was Dojinty Commissionor of Public Works from 1859 to 1861. I )iiring tho enlargement of tho Lnchino Canal, ho appcnrs to have had no con- nection with tho Canals, but was engaged upon roadw, harljourH, l)ridgeH, i^c, and until placed in charge of tho St. Lawrence Canals about the beginning of 1840, had nothing to do with tho Lachino Canal. Any connection he had with tho leases of water- power was Bubsequont to 1849. Mr. Alfred Barrett, who had previously been Associate Engineer with Mr. Power upon tho Wclland Canal, was transferred to Lachino Canal, asKngincer in charge, in the autumn of 1843. Mr. Killaly, in assigning him his position, writes: — "Your experience, and fitness, for the duties of this offlco, render it unnecessary for mo to enter upon any recital of them." On the 27th December, 1848, Mr Barrett was discharged and Mr. Keefor placed in charge of this Canal. Mr. Barrett had evidently a high reputation an an Engineer. In January, 1847, tho Executive Council, being dissatisfied with the lOnginoering, and Estimates, of tho Engineer of tho Wclland Canal and tho reports of the Commis- sioners with reference thereto, passed an Order in Council in tho following language : — **In order to decide tho most economical and beneficial course to be taken under tho circumstances, and also to procure tho fullest information to bo laid before Parlia- ment, tho Committee recommend that Mr. Barrett bo immediately sent up to the Canal for the following purposes," — then follows a list of various questions of Engineering, and expenditure, to be enquired into, and examinations to bo made. This is cited, to show tho position occupied by this gentleman in tho eyes of tho Government. His reports, and regulations, would represent its intentions with regard to the leases previous to 1849. The method in which he laid oft" tho hj'draulio lots, and the amount of water apportioned to each, would be binding, as tho only design sanctioned by Council. Water-power at Basin No. 2. Tho principal power upon the Lachino Canal, is produced by tho head or fall, between the level of what is called Basin No. 2, Montreal Terminus, and the Eivor St. Lawrence. The average head, or fall, for seasons of navigation, varies from 20 feet 6 inches to 25 feet ; during tho winter seasons this head, or fall, varies from 11 feet to 17 foot. Mr. Barrett stated tho fall would bo about 26 feet, and at tho ordinary stages of tho river in summer 24 feet ; at that time there were no data, to compute the averages over a number of years. Tho location being favourable for taking advantage of this power, Mr. Barrett laid out twenty mill privileges, a plan of which, made by his assistant Mr. Cornell, is on record in tho Department, on the south side of tho Basin. To each lot four runs of stone were apportioned, with 360 cubic feet of water per minute for each run, or 1,440 cubic feet per minute to a mill site. The principal difficulties, as reference to extracts from Eeports will show, arose from the quantity of water, to each run of stone, not being specified in tho leases. There seems to have been an ignorance of the fact, that the quantity was distinctly defined, at the sale of several of these lots, and in conditions incorporated with tho only legal lease upon the Basin. It is evident, that this defined volume is tho legal interpretation of a •* run of stone," in so far, as the amount of water Lessees upon this Basin are entitled to, whether the leases were executed previous or subsequent to Mr. Barrett's Engineership. As far as tho past is concerned, these matters cannot effect any thing, but become Quantity of water ^^ importance upon the renewal of the Leases, when the same LMseesiuaderjheir contentions, as made in the past, may be made in the future, and more water claimed than the Lessees have any title to. It is Twenty mill sites laid out, and 1,440 cubic feet of water per minute appor- tioned to each- leases, are entitled to. 28 tlioreforo nocossnry, to deal fully with thia phuHO of tbo question, in order there may bono miBundoi'dtiinding as to the rights of the Govern ment and the rights of tho Lessees. On the 24th June, 1861, Mr. Sippoll, Engineer in charge of tho Lachino Canal, writes to tho Department of Public Works lor inlormation, in this language: — •' [ biig to state in making certain statements, required for the Chief Enginoei", rolativo to the supply of water for the mills at Montreal, I find it necessary, if possible, to ^ obtain wluit amount of water was originally intended to bo supplied on each lot, for It driving an oidinaiy run of mill stones, and necessary machinery, as mentioned in tho lease, or tho number of horse-powers, attached to each lot of lour runs of stones, and necessary machinery. As there is nothing in this oflico, that has any reference to the matter, 1 beg you will be so good as to supply me tho information from your office." Tho endorsements upon the document are: — "Find Deputy Commissioner's report, on hydraulic lots Lachine Canal, sometime previous to 1852." This report could not be found. The Deputy Commissioner makes the following endorsement: — " Inform Mr. Sippoll, that the water privileges upon the Lachino Canal, were projected, and arranged, by tho present Deputy Commissioner, at tho time he was Chief Engineer of the Department. That at the Montreal Basin, a certain number of lots were laid ofV, and surface water sufficient to propel four ruris of stones and machinery ap])ropriated to each I was estimated that a discharge of 1440 cubic feet per minute, under an assumed ;. ige head and fall of 20 feet, will propel four runw ol si ones and machinery. The discharge under the assumed head being equal to foi ty cU'ective o)- fifty theoretical horse-powers." An official letter copied Irom this endorsement was sent to Mr. Sippoll. With reference to tho report that was missing, tho Deputy Commissioner on tho 16th Juno, 18()3, sent a copy of the report dated 15th January, 1850, in order that it may be placed on record, for future reference, as tho clerk in charge of the records was unable to find it. There is no spicilied amount of water in this report. At an arbitration, between the Government and one of the lessees, which will be alluded to subsequently, the Deputy Commissioner testifies in evidence : — " I am well acquainted with tlie line of the Lachino Canal, having myself laid it otit, and planned the water-power." There must bo some misconception, as previous evidence shows, tho Deputy Commissioner had nothing to do with the planning, laying out, or spocilication of tho volume of water to each lot, which in any way received the sanction of Council, ho being at tho date of the first lease, Engineer of tho Welland Canal, and no Departmental authority. It is evident that the remaining lots, that were leased when ho was placed in charge of tho Canal, would be bound b^ tho conditions of tho first lease. Why a copy of the Order in Council, with tuo lease, and conditions, attached, was not sent to Mr. Si])pell, does not appear. It would have had legal weight, while what tho Deputy Commissioner had, or supposed to havo had, estimated some ten years before, is of little value. T It would seem that tho 1440 cubic feet per minute was taken from tho Order in Council as 360 by four is 1440. Mr. Barrett assumed a head or fall of 22 feet. This letter assumes 20 foot ; as tho quantity of water discharged, and head, determine tho power, the coincidonco of the samo amount of water for two different heads is remarkable. 1440 feet per minute under a head of 22 feet would give nearly 60 theoretical horse-powers, or two thirds for useful effect, equals 40 effective horse-powers. In this letter 1440 cubic feet per minute under a 20 feet head, is estimated at 50 horse-power, theoretical, or -iO effective, that is the wheels would give a useful effect of 80 nearly per cent. It is only within tho last few years that water-wheels generally, have been constructed to give an efficiency of 80 per cent., and that, moro often at a testing flume, than at actual work. The Deputy Commiflsioner in 1863, before Arbitrators takes a percentage of two thirds for useful effect, thirteen years before ho states he estimated 80 per cent. or thoro may ights of tho chino Canal, iji^ungo : — " [ loor, I'olutivo f poHsiblo, lo each lot, for noniionod in Q8 of stones, ny roforonco m from your tnmisBionor'a ho following tho Lachiiio Dnor, at tho ?al Basin, a ol four ruris t a discharge of 20 feet, Lho aswumod An official i-enco to tho L8(>3, sent a ed on record, ) to find it. hich will bo 30 : — "I am it out, and tho Deputy ilication of Council, ho opartmental ion ho was rst lease. attached, oight, while some ton e Order in feet. This ermine tho it heads is theoretical )rs, lated at 50 =»efal effect i generally, ) often at a •contage of I per cent, \ ■ I Indeftniteness of the term * run of stone-" 29 There would seem a desire to harmonize Mr. Barrett's 360 cubic feet, 20 feet head assumed by Deputy Commissioner, and 10 hor80-i)ower to a lun of stono inserted in subsequent leases. Tho Deputy Commissioner gave tho following evidence before the Arbitrators : — " My first calculation as to water-power available upon Bar*in No. 2 Lachino was made in 1843. 1 caonot say whether I at that time converted.it into horse-powers . I cannot say when I first assumed a run of stones equal to ten horso-powors. This basis of a run of stones was not 1 now remember mentioned in any report of mine to tho Department. It was not mentioned in any of tiio leases or conditions, nor am 1 aware of its having been communicated to any. of tho Lessees." Ho afLorwai'da states he remembers he used ton hortepower for a run of stones in a report on tho VVelland Canal. Tiiis statement is misleading, in 18-43 that canal had only a water section of 180 square foot, when Mr. Barrett's conditions wore written tho enlargement of tho canal was nearly completed which would give a section of 1000 square feet. Although tho term '• ten horse-power," was not mentioned in loasosor conditions, it has been shown that tho quantity of water, to givo that power, was, and that it had boon read, at sales by auctions, on dIffercJnt dates, accepted as binding by several Lessees, and incor- porated in ono lease. Tho definition of a run of stones, to be equal to ton horse-power, as inserted in tho present leases is nearly as undefined, as far as tho consumption of water is concerned, as the " run of stones " in the original leases. The head, which Lessees would bo compelled to use, not being stated, they migiit draw, say double the quantity of water, that would be required, through loss of head. No atten- tion being paid to the class of water-wheels, that were used, they could consume double the quantity of water with inofliciont wheels, or altogether four times tho amount necessary, and still conform to tho term " ton horse-power." Although there may be some repetition, it is necessary, that all the facts, which bear upon the consumption of water, and tho amount theso Lessees aro entitled to, should be considered. It was the oi-iginal intention, that tho quantity of water should be specified. In a report to Council 14th November, 1844, asking for authority to lease mill privilegos.on the line of tho St. Lawrence C:iiials, Hon. 11. il. Killaly states : — " h^acli Bale or leasing of water, the GovornnKMit may decide ujjon, should comprehend a defined volume of water, and should tho purch-isor, from timo to timo, wish to extend his works, he should treat for a further 8up))ly." In tho report of Mr. Barrett, lltli April, 1841, he remarks: — " I herewith enclose you a copy of the land belonging to the lioard of Works in Montreal, showing some points for tho location of mills, shipyards, ito." Speaking of fiouring mills, ho states : " Each run of stones at this plu J, will not require more tlmn 400 cubic feet of water per miiiuto." In relation to tho wator-powor created at Montreal by this canal, 1 am of opinion that there will be l.),0i)0 cub c feet per minute available, without produc- ing a current of more than one-hall' mile per hour, including the supply for lockage. Mr. Barrett, itia later report, and conditions, .after a description of the lots, ho states: — '-They will be supplied with sullicient water, calculated to drive four runs of stones, or enough to propel other machinery requiring an o(iiial aaiount of power. During the season of navig.ition, the water will bo nuppliod over a waste weir of suit- able breadth, (the upper jdgo of which will be h\ inches under top water line of canal,) to supply about, 3')0 cubic feet per minuto for each run of stones, excepting, at such ])erio(is, when i "egularities in the level of the basin, (necessarily arising from a rapid succession of lockages from or into it,) may for a timo increase or diminish the supply." In winter the water was to bo supplied through sin' eg : — " There will be two sluices atfording a supply, for each run of stone, of about 3t)0 cubic foot ])er minuto, (tho same as supplied over the weir,) for each lot, iho machinery for which will bQ Facts relating to the quantity of water leased at Basin No- 2- 80 provided, placed, governed, and regulated, by the Department, and will be always under its conti'ol." (Order in Council.) "The Committee recommend for Your Excellency's approval, the suggestions contained in the report of Mr. Barrett, and that the mill sites be disposed of, under % leases of 21 years, subject to the conditions, and restrictions, contained in said report." In the leases made previous to 1851, when a new form of lease was used, with the exception of the lease approved of by Council, the following clause is omitted: — " That should it hereafter bo found, that the said sluices will admit a greater volume of water, than will bo sufficient to propel four runs of mill stones, and machinery, the said Lessee shall not be entitled, by this lease, to receive the whole thereof, but the said Commissioners will, (upon receiving the sanction of His Excellency in Coun- cil,) grant it upon obtaining the amount of additional rent to be paid." These mat- ters were then considered important, to conform to the act, the sanction of Council was necessary for using any extra water, than specified in the lease In March, 1847, contracts, plana, and specifications, were made for wtirs, to supply the water, on Mr. Barrett's design to the mills; during navigation ov^r the crest of the weir, and in winter through sluices in the breastwall. Bolted to ho co- ping of the breastwall is a tee shaped iron, the top of which formed the crebt of a weir 18 feet wide and 6^ inches deep. Although the form of this weir, does not meet the conditions of ordinniy weir formula), it would give an approximate discharge of 1,440 cubic feet per minute. These weirs were built, and the design accepted, when it became necessary to supply water to other lots, by the succeeding Engineer, I find his name attached to direct copies of these plans, and specifications, with the only change, he did not seo the necessity of sheet-piling, which was done away with, and has since caused considerable expense, it having to be sheet-piled, to prevent leakage, and destruction of the walls. The plans, attached to the final estimates of these contracts, differ from the con- tract plans, instead of the iron crest of a weir, there is a timber substituted, bolted to the coping of the breast wall, and of a height sufficient to fill the space, between the top of the breast wall, and level of water. Who was responsible, for changing the system approved by the Council, for supplying the water over a weir during the sea- son of navigation, does not appear. By this change, the mills could draw all the water that would flow through the sluices ; it destroyed the only effectual protection to navigation ; it deprived the Government of a large revenue ; there was no water for several lots, and the extra amount drawn was not paid for ; it has led to that con- dition of things portrayed in the Departmental records. The Deputy Commissioner in evidence before the arbitrator states : — " It was originally intended by me to supply the mills by weirs over the wall, which would have placed the Canal entirely beyond the control of the lessees ; but this would have proved impracticable on account of frost." How frost would affect the flow of water in the summer is not apparent, as the water was to bo supplied through sluices in winter. The first report to Council by the Chairman of the Board of Works, having laid down the principle that : " Each sale or leasing of water should comprehend a defined volume of water," that volume has now been clearly substantiated ; it was specified by Mr. Barrett ; it was adopted by Council ; it was made a condition in the only legal lease, that a run of stones at Bafin No. 2, Lachine Canal, was granted 360 cubic feet of water per minute, or 6 cubic feet per second. It is necessary to refer to the evidence, and reports of hydraulic engineers, given on behalf of one of the Lessees, found in the records of this arbitration, which the Commissioner of Public Works slates in 1803 was to settle all disputed questions. It is probable similar evidence might be again advanced, in any dispute between the Government and Lessees. Two engineers were employed to calculate the discharge of water at Basin No. 2, and the amount of water a " run of stones " was entitled to. 31 will be always he suggestions iposed of, under m said report." was used, with le is omitted : — jreater volume ind machinery, ole thereof, but llency in Coun- :." These mat- stion of Council 3 for weirs, to gation ov 3r the cited to ho co- the crerit of a , does not meet te discharge of accepted, when Engineer, I find with the only tway with, and movent leakage, I' from the con- iuted, bolted to e, between the changing the luring the sea- d draw all the tual protection was no water ed to that con- ites : — " It was 1, which would but this would effect the flow pplied thi-ough ks, having laid ihend a defined t was specified the only legal 360 cubic feet alio engineei's, itration, which 11 ted questions, ispute between p at Basin No, The data upon which these calculations were made, wore the measurements of Mr. SippoU taken in October, I860, for the purpose of estimating the consumption of water. In May, 1862, clippings were sent to the Department, from the Montreal Herald, of a correspondence between Mr. Ira Gould, one of the lessees, at Basin No. 2, and Mr. Charles Logge, C. E,, which had been published in that paper. The Hon. John Eose, M.P.P., also forwarded a letter from Mr. Gould to himself. Mr. Legge is requested to furnish Mr. Gould with " a statement, which will show the quantity of water that will pass, in a given time through the openings which supply the water for a run ot stones at Basin No. 2, Montreal. " Mr. Leggo replies: — "I find on calculation, based on data furnished by the Department of Public Works, that the quantity of water used by three flouring mills, Gi'ant, Hall & Co., McDougall, and Ira Gould, amounts to 951 cubic feet per second, which, divided by 24 runs of stones, the number leased by the Government to the above proprietors, will give for each run a discharge of about 39-62 cubic feet per second. I may also state that the discharge at all the existing establishments at the same point (Basin No. 2), amounts to 2,053 cubic feet per second, and that were all the water used, which is actually leased, the discharge would be augmented to about 2,511 cubic feet per second." In the letter to Mr. Eose from Mr. Gould, he states : — " The facts contained in Mr. Leggo's answer are now as well known to the Engineers of the Department of Public works, as they are to Mr. Leggo and myself. Leaving the other Lessees out of the question, how did this evidence affect Mr. Gould ? He was present at the original sale of the lots, and purchased them upon the condition, that six cubic feet per second would be allowed to a run of stones (auctioneer's certificate). His lease contains these clauses : " Subject, however, to the conditions hereinafter mentioned, part whereof were read over, and agreed upon at the time of sale, and the supply of water thei-eto is granted, and such parts of the conditions of public sale, as are repugnant hereto are hereby rescinded, and such other parts as ai-e not hereby rescinded are to remain in force ; " also : " That should it hereaftei be found that the said sluices will admit a greater volume of water, the said Ira Gould should not be entitled by this lease to receive the whole thereof." " That should the said Ira Gould be desirous of obtaining the whole of the water- power, that can be supplied through the said sluices, the said Commissioners will, upon receiving the sanction of His Excellency in Council, grant it upon determining the amount of additional rent to be paid therefor." Ho is in the position of acknow- ledging, over his own signature, at the date of this letter, to have violated the terms of his lease, by having been using six times as much water as it entitled him to, and to have deprived the Government of the additional rent, that the lease provides should be paid, when he had obtained the sanction of His Excellency in Council (which waj never obtained), to use more water. Mr. Gould's lease entitled him to 12 runs of stones. He was using 79 runs of stones, or 67 runs more than leased. The vail t of a run of stones, to bo obtained from Lessees, by order of the Depart- ment of Public Works, was in 1850, £12 10s. The Government were losing yearly $3,350.00 in revenue, according to his own statement. In May, 1863, Mr. Legge gave in sworn evidence, before the arbitrators, on behalf of the claimant, Mr. Gould, a similar statement to that pi-oviously referred to. He says: — " The calculations in Exhibit were made by me, and the results are correct show- ing a total of 2,052 cubic feet per second, of water, passing through the openings, at the works on Basin No. 2 of the Lachino Canal." The definition of a run of stones is arbitraiy, the same as horse-power ; a run of stones at the Basin No. 2, uses 39.62 cubic feet per second. A Eeport to the Hon. John Young, and Ira Gould, by James B, Francis, Esq., C.E., the distinguished Hydraulic Engineer, of Lowell, Mass., was filed as evidence for the claimant. That gentleman made similar calculations to Mr. Legge. Hq r 82 Quantity of water to a run of stones that could legally be substantiated. states in his report : — "By the preceding table, it appears that the water wheels supplied from Basin No. 2, when their gates ai'e fully open, have the capacity of drawing 2,005.'73 cubic foet per second." " If I am correctly informed, the amount of power or quantity of water, to which a run of stones at Basin No. 2 is entitled, is defined only by what was necessary for the purpose when the grant was made. (That has been shown to be six cubic feet per second, a fact which Mr. Francis was not acquainted with). 1 have not been able to find that it has been estimated anywhere, what amount a modern flouring mill requires. Until this is done, and presuming that all parties have acted in good faith, the only mode opon to determine it, ad interim, appears to be, to take, what the lessees have actually done under their leases. Adopting this method, I find the quantity of water required to drive " a run of stones" at Basin No. 2 as follows: — I learn that all the water drawn from Basin No. 2, at Lots Nos. 11, 12, 13, 14, 18, 19 is used in driving twenty-four " runs of ntones." The quantity of water the wheels on these lots are capal)lo of drawini^, is, by the preceding table, 927.52 cubic feet per second, or at the rate of 38.05 cubic foet per second per "run of stones." Walter Shimly, Esq., C.B., gave evidence on behalf of the claimant. He stated th^t the lieport B. (by James B. Francis, Esq., C.E.) had been examined by him, and verified : — "And that about 40 cubic feet per second are considored,commonly, equal to one run of stones, there is no regular rule to go by. I am in the habit of assuming that as the quantity." When evidence of this kind is adduced, it is necessary to enquire, what could bo claimed, and substantiated, in a Court of Law, as the amount of water or power required for a "run of stones," without reference to conditions and intentions, but judged solely, by what the phrase, " water to propel an ordinary run of mill stones," means. It is well known that from experiments made with average descriptions of wheat, it has been found, it requires less than one horse-power, to grind one bushel of wheat in an hour. One horse- power is the general standard. If the average number of bushels an "ordinary run of stones" grinds per hour in Montreal, or elsewhere, is determined, the power required per run of stones is established . There was, at one time, a period of fast grinding in America, which was abandoned on account of the poor flour manufactured . At Montreal Mr. Gould grinds from 8 bushels to 15 bushels per hour. The larger quantity would be a selected description of wheat. At the extensive mills of Mr. Ogilvie, before they adopted another process of manufacture, they ground 4 to 6 bushels per hour with a run of stones, or an average of 5 bushels. The millers of Mr. McDougall state they grind on an average seven bushels. The London Miller publishes a table, compiled from the opinions oi the most Buccc-^sful engineers and mill-wrights, which gives as the best results for stones 4 ft. 6 in. diameter, 105 revolutions per minute, 4J horse powers, and 5 bushels of wheat ground per hour. Pallet states in his book, " Miller, Millwright and Engineer" : — " A great over- eight by millers is grinding too fast. A 4 ft. (! in. pair of stones, making 150 rovo- luoions per minute, ought to grind not more than 10 to \l bushels of wheat per hour." In order to grind this amount it requires 45 revolutions per minute more than the practice of the best engineers and millwrights in Great Britain. Six bushels per hour would be a fair average, or six horse-powers to a run of stones. LefTol & Co., who claim there are 10,000 water-wheels, of their manufacture, in operation, who have an extensive knowkdge of the power, required In mills, in the United States and Canada, by means of their business, have informed me they usually estimate for a run of stones grinding 6 to 8 bushels per hour, a power of 10 or 12 horses. The editor of the " Milling World" states :— " That the custom among the load- Sd vator wheels e capacity of ,ter, to which necessary for six cubic feet ive not been iern flouring acted in good ike, what the , I find the as follows : — LI, 12, 13, 14, of water the 927.52 cubic )f stones." limant. He examined by )d,commonly, I the habit of vrhat could be Law, as the 1 of stones," 18, but judged 1 an ordinary ^n that from of wheat, it shel of wheat inds per hour of stones is I, which was The larger mills of Mr. ouud 4 to 6 le millers of s ol the most stones 4 ft. els of wheat groat over- ng 150 revo- wheat per minute more •8 to a run of nufacture, in mills, in the ed me they )0wer of 10 ong the load- ing milling engineers, is to provide power for each run of stones, with its comple- ment of cleaning, elevating, bolting and purifying machinery, to the extent of li horse-power per each bushel of grain ground per hour. Instances are to be found where the work is performed with a consumption of one-third less power than this, but the custom is as we state." Sir William Fairbairn designed, and constructed mills, to grind 5 to 6 bushels of wheat per hour, and allowed one nominal horsepower per bushel in designing the engines. Jackson, in " Manual of Hydraulics," gives four horse-powers, nominal, for a run of stones. Hughes, in "The American Miller, 1855," and Pallet, in the work referred to previously, publishes a table, giving, for the head at Basin No. 2 (22 feet), the number of square inches of water necessary to propel a run of 4J feet mill stones, as 43 square inches, or a discharge of some 6 cubic feet per second and a power of 6 horses. In the different advertizing pamphlets, of water-wheel manufacturers, there are published testimonials from persons using their wheels, in which the number of runs of stones the wheels are impelling, their size, and the head, acting upon them, are stated. I have found, that in eleven merchant mills of from 4 to 10 runs of stones, the average power was 11 horses to the run ; and in forty mills from 1 to 3 runs it was 10 horses. This power is calculated from the tabulated power of the wheels, as given by the manufacturers themselves. It is well known they exaggerated the power their wheels will give, and that millers in purchasin-^ a wheel will procure a size, that will afford power in excess of what would drive their machinery, in cases of backwater and their contingencies. For these reasons 10 per cent, would be a small deduction, which would give 9 to 10 horse-powers for a run of stones in 51 mills in actual operation. Mr. Gould, a practical miller in the sub-leases of the St. Gabriel Water-Power Co., leased, for a run of stones, 150 square inches of water, which, under the head at this lock 8^ feet, would be nearly 10 horse-powei's, although he claimed much greater power at Basin No. 2, where the Government was Lessor. In the leases it is generally specified, that the water-wheels shall be of the most improved description at the time of erection. In 1837 there were turbines which gave 70 per cent, to 75 percent, of the theoretical power of the water. At the date of these leases, both in Europe, and the United States, there wore many water-wheels giving an average useful effect of 75 per cent. For the following calculation, assume two- thirds for useful effect as the probable percentage taken by Mr. Barrett : — 62J X 6 X 22 X f ■ -— 10 horse-powei s. 550 It has now been proven beyond doubt, in whatever view it may be taken, that the Lessees at Basin No. 2, have only right, and title, t ) six cubic feet per second to a run of stones, or 10 horse-powers. First, — Mr. Barrett's conditions, adopted by the Governor in Council and unchanged. — Cubic feet per second 6*00 Second, — By the average number of bushels of wheat ground per hour at Montreal, and elsewhere, by a run of stones and the power required for that purpose. — Cubic feet per second , 6*00 Third,— Pallett, Hughes, the " London Miller," Leffel & Co., the Editor of the Milling World, Sir William Fairbairn. — Cubic feet per second not more than 6*00 Fourth, — Fifty-one flour mills in operation. — Cubic feet per second 6*00 In opposition to this we have the evidence brought forward at the arbitration* 3 ' 34 It Mr. Leggo. — Cubic foet per second 39*62 Mr. Shanly (always assumed). — Cubic foet per second 40*00 Mr. Francis (non-committal) do do 38*65 The calculation of the discharge of water, through the wheels of the mills, on this basin, was, as before stated, made from measurements taken by Mr. Sippell in 1861, of the throats, or apertures, that admitted the water to the wheels. Any calculation, as is well known, by anyone acquainted with the uncertainly of the science of hydraulics, is very approximate. The only accurate methods would entail greater labour, and expense, than necessary in a preliminary investigation, but which would be required if the Government take any action with these lessees, and adopt the scientific systems of other countries. Measurements, similar to Mr. Sippell's can only be taken in summer, as in winter the backwater is over the wheels. Eather than delay this report I have taken the measurements of Mr. Sippell, and ascertained bv enquiry from the lessees, the changes made in the interval. Few ^mprovemente in With the exception of a few new wheels, chiefly Leffel's, the Basfn No" 2 "i "twenty same conditions obtain ; in thirty years there has been little y^*"^' improvement, the same water-wasting and incflScient wheels, demonstrating something wrong in the system, that in the heart of a city like Montreal, where power should be valuable, water-wheels of this description should still be in existence. I have found, from data obtained in the manner stated, that the wheels from the Basin ^o. 2, have a capacity of discharging about 2,114 cubic feet per second. The actual discharge can only bo obtained by Capacity of dis- measurements. A detailed list of these wheels, apertures, &c., is charge from water- „ j i > r > > wheels Basin No.2. appended. Mr. Legge's, and Mr. Francis', calculations from measure- ments, taken in 1861, were respectively 2,052 and 2,005 cubic feet per second. We will asbume that ihc wheels have a discharge of 2,000 cubic feet per second, a few cubic feet per second is immaterial, considering the disregard and apathy that have characterized the administration of these water-powers ; but of importance when the power has to be paid for, as six cubic feet a second, represents a rent of 8«0 per annum, at the prices established by Order in Council some thirty years ago. The reason, which caused the amount of water used upon Basin No. 2, to come BO prominently before the Arbitrators, was, the Lessees of the entire power at St. Gabriel Lock weio prevented from subleasing more water by the Department, this load to disputes, and litigation, direct, and indirect, damages were claimed from tho Government, the lessees endeavoring to prove by the calculation cited and other evidence, that a greater quantity of water was drawn from the canal by the mills at Basin No. 2, than subleased at St. Gabriel, consequently they were not using the entire surplus water, and the Department was not justified in refusing them tho water. The contentions of Mr. Sippell, the Engineer of the canal, at this arbitration, wei'o, that although tho wheels might give this discharge, there was not that amount of water used, nor could it bo forced through the canal, without creating a current, that would render it unnavigable, also that the estimate was exaggerated. Mr. Sippell in his evidence reduces the discharge to some 1,650 cubic feet per second. This quantity must be indefinite, they certainly drew from the canal, as much water, as tho mills at St. Gabriel, used, 1,200 cubic feet per second. They had, by their leases, the right to use 360 cubic foet per second, which would bo 840 cubic feet per second, or 140 runs of stones more than they wore entitled to, and paid for. Take a period of twenty years, down to the date of the commencement of the enlargement, 140 runs of stones, at the Government price of $50.00 per annum, would give $7,200 a year, the country was losing, or $144,000 in the twenty years, 3-62 )-00 8-65 the millfl, on Ir. Sippell in ivheels. Any •tainly of the i would entail on, but which cs, and adopt ummer, as in •oport I have scertained by the interval. fT Leffel's, the las been little Bcient wheels, Q, that in the wheels of this leels from the ,114 cubic feet obtained by jrtures, &c., is rom measure- ,005 cubic feet et per second, id apathy that )£ importance i a rent of $uO cars ago. S'o. 2, to come power at St. mrtment, this med from the ted and other y the mills at not using the iing them the is arbitration, tt that amount ing a current, Mr. fJippcll per second. s much water, second, which an they were cement of the D per annum, tAventy years, 86 over one-half, that has been received, in rents from the lessees on this Basin, from the commencement of their leases, some thirty years, the sum of $215,905. St. Gabriel Water-Power. Character of lease and ito aiipula- tions. This lease, the granting of which has been referred to previously, is a one-sided document throughout; in addition to a clause of the conditions, drawn up by the Engineer, there is added a guarantee, " the extent of power being considered not loss than twenty runs of stones ; " and in the general renewal clause of the Government leases, there is inserted, " the amount of rent to be charged in the renewal of this lease shall not be estimated at more than what would be equal to twenty runs of stones, which if the lease would not bear the interpretation placed on the phrase, '-surplus water arising and flowing," sub- sequently, would bind the Government, if this lease is sustained, to charge no more than for twenty runs on the enlarged canal. The effect of which is the Lessees pur- chased and pay rent for 280 cub.c foet of water per seconil, they sub-leased 1,200 cubic feet, 920 of which the Government should have rent from ; by the enlargement, if the supply is increased, to 2,400 cubic feot, the Government bind themselves to renew perpetually for a rent of twenty runs of stones, or 280 cubic feet, the remain- ing 2,120 cubic feet, being still the property of the Lessees to be sub-leased for their profit. In another stipulation the Government were bound, if for any public purpose, the whole surplus water, or any part thereof, was required, that any buildings, or fixtures, which may be in anywise connected with the use, or occupying, of the surplus water whether upon the land leased from the Government, or on land bought by the lessees for the utilization of the power, that the present value with ten per cent, added should be paid for all buildings and fixtures. The absurdity of this stipulation is evident, the Government are to receive a rent, for all time, equal to twenty runs of stones, there were in the past, say twenty runs utilized upon Government property, the other sixty odd, sub-leased, wore utilized upon land bought by the Lessees, if for any purpose this water was required, or if, in tlie enlargement, it had been necessary to supply it at a diftei-ent part of the canal, the Government had, themselves, to pay for all buildings, and fixtures, whereby this water was used, whether on their own property, or that of the lo>(sees, they never receiving one cent revenue from it, assum- ing all the risks, and the Lessees deriving all the profits. Messrs. Young tt Gould, in order to utilize the sixty odd runs of stones more thiin they were entitled to, purchased property adjacent to the canal for £2,900 10s. On the 13th February, 1852, two deeds were executed between Messrs. Young & Gould and Be Witt & Ostell. The first conveyed to DeWilt & Ostell, one-half the land bought upon the payment of one-half the purchase money. The second conve3'ed an undivided half interest in all the Gov- ernment land and surplus water leaded by Messrs. Young & Gould for the sura of £10. On account of the expense, attending the purchase of land, and the utilization of the water, a deed of partition was drawn up dated Tith June, 1853, dividing, and apportioning the property, and power, among themselves in four parts, with certain charges and monies upon each division. The land divided was : — Fii'st. Land belonging to the Government, more or loss. Second. Land conveyed to the Government by deed of purchase from " Les Ecclesiastiques du Seminaii-ede Saint Sulpice." Third. Land purchased by themselves from the same parties, amounting in. all to £2,900 10s. The whole property is divided according to a plan attache 1 to the deed. 8i Lands bought to uti- lize the j)ower and the division of the property into four parts. 1 i 86 The water-power was apportioned in the following manner, to the four divisions of the proporly: — Division No. 1, John Young, Huns of Stones" 20 square inches water. 3,000 do 2, John Ostell, do do '22 do do . 3,300 do 3, Gould & DoWitt, do do 24 do do . 3,600 do 4, do do do 28 do do . 4,200 Total. do do 94 do do 14,100 Arbitxation between Mr. Ira Gould and the OoTemment- The difficuliics, between the Jjossces and Department, which losulted in the un- settled Arbritation so frequently alluded to, arose from the un- divided half of Messrs. Gould Si DoWitt, represented by Mr. Ira Gould. The right, of the Department to construct a lock keeper's house, a weir, and a street, at the situations chosen by the Engineer in charge of the canal, was disputed. Mr. Gould leased, as a hydraulic lot, the ground upon which the lock keeper's house was situated, the Hub-lcaseo pi-oceeded to I'once in property required for canal purposes. The De- partment interfered, and prohibited this action, upon which litigation between the sub-lessee and Mr. Gould ensued. A largo amount of correspondence took place between Mr. Gould and the De- partment, fi'cqucnt references were made by the Department to Law Officers of the Crown, as to his right under the lease. Mr. Gould eventually sent in a bill of damages against the Government. One item is damages for interfering with water-power and land leased to William Walker $1,800. The Department for canal purposes used a strip of Government property for the formation of a stieet. The item of damages, for the land required, was 825,000. The water-power, upon the divisions of Young & Ostell, had all been sub-leased, which had been apportioned to them by the deed of partition. Gould & DeWitt had leased within 1050 square inches of their complement, 600 square inches were then leased to one Green, who erected buildings for manufacturing purposes. Without the sanction of the Department, he commenced cutting the banks of the canal, to put in a flume, or pipe, for drawing this amount of water from it. Navigation, was, and had been, sufFei'ing from the great quantity of water used by the mills, the Superin- tendent of the Canal was ordered to stop the cutting through the bank. This action directly eft'cctcd Mr. Gould's interests, as he had signed the deed of partition, appor- tioning the quantity of water to each, the other two divisions had their amounts sub- leased, these 1,050 square inches of the water, assigned to him by the deed, the De- partment would not permit him to use. With this fact the Government had nothing to do, if these Lessees divided 18 runs of stones more than they had purchased amongst themselves, it was their own affair, and loss. Mr. Gould with a force of men then undertook the work of cutting the banks, he was ordered to stop by the Superinten- dent, but persisted until he was arrested under a warrant and held in bail for some six weeks. Mr. Sippell reports upon this item : — "Sixth item is for personal dam- ages, for false imprisonment, &c., &c,, amounting to $10,000. Notwitnstanding the refusal of the Hon. the Commissioner, to grant Mr. Gould's oft repeated application, to cut the canal bank foi- supplying water to Mr. Green, as above stated, he was not satisfied, but taking advantage of the season when the water was drawn out of the cnnal, lor repairs, in the month of April last, he set the Government at defiance, and commenced cutting the banks, when he was warned off by the Superintendent, and the cuttings he had made in the banks filled up by him, for which Mr. Gould attempted to get him arrested, but failed in getting a warrant for the purpose. A few days after, Mr. Gould again commenced cutting the bank, and was again warned off by the Superintendent, which he refused to do, unless he were overpowered. Applica- tion was made to Mr. Coui'sol, Judge of the Police Court, who issued a warrant for the arrest of Mi*. Gould, and tiis men, on which Mr. Gould and as many of his mm as 3-7 four divisions sr. 3,000 3,300 3,600 4,200 14,100 ted in the un- froni the un- ad by Mr. Ira lock keeper's hosen by the Mr. Gould was situated, ses. The De- betweou the rl and the Do- Dfficors of the nment. One illiam Walker lent property required, was len sub-leased, & DeWitt had hes were then es. Without a canal, to put ition, was, and 1, the Suporin- . This action rtition, appor- • amounts 8ub- deed, the T)e- it had nothing ;iasod amongst ) of men then 10 Superinton- bail for some personal dam- nstanding the )d application, Qd, be was not wn out of the [> defiance, and intendont, and luld attempted A few days warned off by •ed. Applicp- a warrant for of bis men as did not run away wore arrested, and held in bail for their appearance at Court in Soptomber." Mr. Green then had action of damages, against Mr. Gould, for non-supply of water, and indirect losses upon the buildings he had erected. Mr. Gould's claims, against the Government for this action, were : — Items Noo. 1 and 2, withholding water from Green & DeWitt $3,150 00 Item 3, damages claimed byN. O. Greon 8,500 00 This water was refused, as those navigating the Canal, and sub-lessees of Young & Gould, complained to the Department about permitting more water to bo sub- leased, a document was sent to the Department, which was addressed to the other sub-lessees by a sub-lessee. Ho protests against any more water being leased by the Hydraulic Co., the otl'ect of their leasing the 600 square inches would rob each of the sub-lessees 5 per cent, of what they had leased, as there was no more water to .supply it ;'^he, in strong language, calls upon his co-leasees, giving figures to justify a potilion being sent to the Board of Works, to have the quantity of water drawn from this level, looked to by them. None of the claims of Mr. Gould wei'o recognized by the officials of the Depart- ment, they were investigated, and decided against, by the Commissioners of Public Works. Mr. Gould succeeded in having his claims referred to the Provincial Arbi- trators by a subsequent Commissioner. The Arbitrators met, and adjourned several times, there wore filed in the case some Kevonty documents as "exhibits," fitleon witnesses wore examined for the claimant, and fourteen for the respondent, among them wore five Civil Engineers, a number of forwarders, navigators and mill-owners. Previous to the arbitration, one hundred and thirty-five letters wore received or sent by the Department on the subject. The Arbitrators adjourned for further evidence, and never mot again on these claims, consequently they are still in abeyance, and the objects of this arbitration, as stated in the report of the Commissioners of Public Works, have never been attained. One of the remarkable features of this arbitra- tion, is the ignorance or suppression of the report, regulations and conditions of Mr. Barrett, it was not filed as an exhibit, or alluded to in evidence, it would have destroyed the evidence of Engineers, and others called for the claimant, and settled other matters, which the Commissioner of Public Works states, in his report of 1861, wore the principal cause of injury to the interests for which the canal was originally constructed. In this case, there never was the foundation of a claim, either in equity, law or juetice. To return to tho lease, the clause granting the water, roads : — " Together with the use, and enjoyment, of the entire surplus water, disposable, Quantity of sutbIus arising, and flowing, from the level of the said Lachine Canal, water at date of leaae. at and above St. Gabriel Lock." The Chief Engineer in his report of December, 1850, recommends tho sale of five mill lots, and twenty runs of stones. In his report, purporting to be made a month aflei'wards, he changes his opinion, — " Certain parties at Montreal desirous of purchasing all the surplus water disposable at St. Gabriel Lock, it is respectfully submitted, no objection presents itself to carrying out such an arrange- ment, providing the following conditions be complied with." In these conditions there is no clause of limitation. The Deputy Commissioner in examination before the Arbitrators states, — " The computation of water-power, made at the time of lease, was a maximum of 36 runs of stones, but I did not consider it safe to recommend over 20 runs." Whether the legal interpretation of this phrase " arising and flowing" from tho level above, is determined to be, the amount of surplus water at the date of the lease, or the amount that will be flowing during the tenure of the lease, twenty-one years, and by its renewal clause, perpetually, without reference to any changes, whereby the conditions are entirely different, from those at the date of lease, and the 88 supply having boon grontly incronsod. Tf this lonso is ronowod, as tho Govornmont have bound thoniHolvoH, tocharffo for only twenty runs of stoncH, and if tho Lohsoos ai'o only entitled to tho amount ol" nnrplus water at tho date of lomo, the position would bo on tho ronowal, thoy would bo entitled to twenty runH, tho amount avail- able, above this, at the prosont limo, bolon<5s to tho Govornmont, from which thoy should receive tho lent. Tho quantity of surplus water flow! n<^ at tho date of lease, — Mr. Barrett's OHti- mato of surplus water was 15,000 cubic foot per minute previous to tho dato of this lease . Tho Engineer of tho Department estimated 39,600 cubic foot per minuto, as the quantity that would flow through the rock cut, the narrowest part, without creating a current of more than three quarters of a mile por hour, from this ho deducted 8,000 cubic foot per minuto for lockages, &c., making 31,600 cubic feet por minute, or 627 cubic foot per second, as surplus water, available for mills. The basis of this calculation was tho quantity that would pass through tho rock cut with tho current stated, which was an error, tho key of the supply of water was the amount that would flow into the canal, through the openings for supplying the canal at the lowest Btnge of the water in the river. Taking tho head, or ditteronco of level between tho canal and the river, at one foot although it has been loss, these openings, at that date, had an area of 64 square feet, which would afford a supply of 342 cubic feet per Hccond, or deducting tho quantity assumed by the Engineer of tho Department lor lockages and leakage, would give 208 cubic foot per second for surplus water against 527 cubic feet per second as calculated from tho discharge through tho " rock cut." In sup- ])ort of which Mr. SippoU states in his evidence before the Arbitrators : — " At low water in August, 1851, the supply was reduced to 262 cubic foot ])or second." At Basin No. 2, the mills wore probably using more than this amount, but wo have at the dato of this loaso, six other mill privileges leased, there being no water to supply them, tho result of which is shown, in tho extracts from tho reports of the Commissioners of Public Works. In support of this contention tho Eeport of tho Commissioner of Public Works, dated June, 1851, states: — " The old locks at Cote St. Paul and St. Gabriel have been convoi'ted into waste weirs, for the purpose of eftbctually regulating the water, with the view to tho safety of tho canal and tho due supply for hydraulic purposes, All the disijosablo water at tho Montreal terminus, and at St. Gabriel, is now leased, and by the time tho necessary erections, and machinery, aro prepared, much more en- larged moans must be afforded, to ensure a steady and ample supply to tho mills without affecting navigation." This report is a contradiction, there was no dispos- able water until the area of supply at tho head was increased. Tho surplus water, at low water, could not have been much over 208 cubic feet per second or 14 runs of stonca at St. Gabriel, theroforo the amount thoy paid for, twenty runs, was all tho surplus water at the dato of lease. If the interpretation could bo placed on this lease, that the Lessees had no right to the extra surplus water, that those onlargoraonts, and additions, to tho canal, affoi-ded, that thereby tho term level of the canal above St. Gabriel was changed, it not being the same level, the Government have boon losers, during nearly the whole period of the Lease, granting it to have been legally executed. The changes, that have been made in the canal, to give an increased supply to tho mills, and to regulate it, are these. It has boon oefore stated that the area of openings for supply at tho head, at the dato of lease was 64 sqr. feet, a new weir with an additional area of 168 sqr. feet, and another with 336 sqr. feet, wore con- structed, or an increased area of 504 sq. feet ; the pior at tho entrance was extended which raised tho level of water, and the present works, now being constructed, will still further increase the head at tho guard lock ; the level of the canal was raised at the guard lock, six to ten inches, to create a velocity sufficient to pass tho quantity of water used by the mills, this was done without authority from the Department, and damages were paid for injury to Changes and ereotionB necessary to supply the milla vnth water. 39 Govern mont tho LoHsoos tlio position mount avjiil- n which thoy Jarrott't) OMti- dato of this linuto, as the loiit creating lio deducted t per minute, basis of this tho current amount that at tho lowest between tho I, at that date, iibic feet per partmont ior er against 527 cut." Insup- :— "At low ond." lount, but wo nng no water [•oports of the *ublic "Works, iel have been 9 water, with iirposes, All w leased, and ich more on- • to the mills ras no dispos- Tho surplus per second twenty runs, had no right to the canal, 3 changed, it ly the whole ed supply to been before head, at the in additional 9t, were con- Q pier at the iter, and tho head at tho on inches, to ills, this was for injury to lands therefrom ; tho " rock out " was enlarged, or tho water section of the canal iticreasod, from 600 sqr. foot to 1,000 sqr. feoL ; waste weirs, for regulating tho largo quantity of water flowing through tho canal, wore constructed at various times. ThoKO works commenced immediately after tho date of lease, if under the legal reading of tho lease, Ihoy wore entitled to this increased supply, they aro entitled to the mcreased supply from the enlargement, which would not be common sense. It has been proved, that at the date of lease, all the surplus water was not equal to twenty runs of stones, that twenty runs of stones were purchased, and rent for that quantity paid from the commencement, that tho Government by direct expenditure for the purpose, increased the supply above that amount, that tho " level of the said Lachine Canal above St. Gabriel lock," was changed thereby, it was not tho same canal, that tho lease grants the surplus water, arising, and flowing from the level as it existed at the date of lease ; therefore, the Government have for twenty five years been entitled to rent for tho amount of water, above twenty runs of stones, sub- leased. By the deed of partition, the Lessees divided among themselves 91 runs of stones, which they would have sub-leased, if not stopped by the Government. In 1862, Mr. Legge measured the sluices loading to tho water-wheels, the discharge was given equal to 88 runs of stones. Mr. Gould, in a letter to tho Department, dated July, 1862, states that 87 runs had been in use for some years, that is 67 runs the Govern- ment should have received rent for, or at £12 10s. would give an annual rental of say $3,350, or for a period of twenty-five years, $83,750. To this amount must be added tho ground rent of tho land, taken by the lease above the five lots paid for. There have been paid some $50,000 in damages to sub-lessees, on account of tho enlargement, and the representatives of Young & Gould have a claim for land taken for the same purpose. The total revenue, received, down to 1882, was $46,060. This lease has boon an unprofitable transaction to the country, from its inception. Cote St. Paul Water-power. At this lock, fivo mill-sites wore designed, and laid off at the same time as those at St. Gabriel, They wore to bo sold at the same date, 14th February, 1851, for some reason they were not. On the I3th May, 1851, Mr. John Young applied for this f)rivilege, the Secretary replied, the Commissioners of Public Works wore ready to ease it for £450 per annum. A lease was not executed. Another party made appli- cation, a report to Council, 6th October, 1852, was made for authority to sell, by public auction, these hydraulic lots. Why this Order in Council was required in 1852, and not in 1851, when they were to bo sold on the same date as the St. Gabriel property, does not appear. These lots were sold upon the 1st Feb. 1853, at an upset price of £400, the Secre- tary was notified by telegraph the same day, that the lots had been sold to Mr. Parkyn at five shillings above upset price. The same auctioneer sold the property at St. Gabriel, but no official notice from him, of that sale, can be found in the Department. There has been no trouble with this lease, there never being as much water used as at St. Gabriel Lock. At the date of sale there was little more surplus water, than at the date of the St. Gabriel lease, if tho contentions advanced with regard to it are correct, this lease is only entitled to 20 runs of stones, there were leased at one time some 70 runs, there is not that amount in use at present. If this 50 runs had been leased by the Government it would have retiu'ned a revenue of $62,600 in twenty-five years. Expenditure for Water-powers. Tho principle has been asserted, in the commencement of this Eeport, that these water-powers were not a necessary attendant upon the construction 40 No luriilus water upon a oanaroon8traotend required, tho remaining 100 cubic feet per second would bo surplus water. Second, — The feeders would be designed to give this 150 cubic foot por second, nt low water in tho rivor, at higher stages of tho river, a greater quantity would pass through, which would vary with tho head, tho amount above this 150 cubic foot per second, that would enter the canal would be surplus water, which could bo leased to mills, they in seasons of low water would have to close down. It has boon before stated, that ut the leasing of Feb. and March, 1851, there was in reality no surplus water, and imiuediately afterwards it bocamo necessary, to maintain tho navigation of tho canal, to expend money. In August, 1851, a contract was entered into, for weirs and flumos, to control and pass around tho locks this mill water at a cost of 83,540. A second weir was constructed upon Basin No. 2 for $10,944. In 1864, a supply weir was placed in contract at $27,900. Tho mills kept drawing more water, than could pass through the openings at Coto St. Paul, until it culminated in 18tJl, when 530 vessels wero detained. A contract was made for a now weir at $16,851. The current was so strong at Cote St. Paul that a pier was constructed to protect vessels, $2,000. The supply of water at the head becoming short in low water, the Lessees began to agitato the construction of another supply woir. They offered to advance money to be deducted from the hydraulic rents, for the construct- ion of this weir. This proposition was not accepted, the weir was constructed in 1810, at a cost of $25,173. Wo have therefore a total expenditure, due to these mills, of $86,408. In addition to this, there was a direct expenditure, upon walls, weirs, and flumes, in front of tho hydraulic lots, Basin No. 2, of some $23,474. Mr. Sippell stated, that on this canal, the increased cost over other divisions of the St. Lawronco Canals in maintenance and repairs was caused by tho largo quantity of water drawn by the mills. It is impossible to ai-rive at this yearly expenditure at the present timo. On the Boauharnois Canal, 11 J miles long, with nine locks, over a number of years there was an average expenditure per year of $7,432, for Direct expenditure for hydraulic powers. I 41 Hiiffioiont to iMooH, or tho lo, thoydrow II and kcup from time to ogcthci- with jii of a cftiml ud, und flow evaporation, was, as, tho will adhoro 30 cubic feot uld give 150 lovoTs at tho Imiiting and event llnctu- e miliu, aro a misnomer, r for power, ^tonsibly for ;wo ways : — i8t amount of third of that ubic feot per t per second, y would pass ubic foot per bo leased to there was in is it bocamo il, to expend or woirs and lill water at 610,944. lings at Goto on tract was d to protect V water, tho Toir. They a construct- ted in 1870, 336 mills, of and flumes, divisions of go quantity expenditure nine locks, ' $7,432, for repairs, and maintenance. The shorter canal, tho Lachino, 8^ miles long and 5 locks, tho cost for tho same period was $lG,5(i(>. Although the Jieauhurnois Canal is longer and has more locks, this comparison would be unfair, on account of the greater traffic upon the Lachino Canal, and tho number of wharves, basins, &c., that have to bo raiiintained. Allowing double the cost thore would be $1,700 remaining, wo might probably take |;2,000 a year oa chargeable to tho mills, or for a period of twonty-five years down to the present enlargement, would give a total of $r)0,000. A summary of those expenditures and the loss of rovonuo would bo : — Basin No. 2, Direct $ 23,474 do do Water not paid for 141,000 St. Gabriel, Above 20 runs 83,750 do Damagoft on account of enlargement 50,000 Cote St. Taul, above 20 runs C2,500 General expenditure on structures 8'>,408 Muiulonance and rejiairs fi0,U00 Total 500,132 To be added to this, aro tho losses to those navigating tho canal, from tho fact of if', being converted into a mill race for a groat numoor of years. Those figures are in round numbers, to illustratf/ the principle, sot forth in tho commoncomont of this report, disabusing a prevailing idea, that the mills aro using water, a noce-ssary attendant upon the construction of the canal, something that would run to waiste in any case, and costing nothing, whilo in reality, tho gonenil community have been taxed to present these Lessees with power, and they have, likewise, been permitted to bo a serious detriment to navigation. j Proposed System for the Enlarged Canal. Tho elements, which govern this investigation are two. A canal being designed solely lor navigation, there are no wator-powors ; the levels between tho locks are still water reaches with tho almost imporcojjlible current through thom necessary to supply the lockages, &c. On the other hand, thore is tho canal designed for both watei'-power and navigation, under this category, although not by design, may be placed tho Lachino Canal, for, as has been shown, by the encroachment of the mills upon navigation, works wore, from time to time, constructed, which has rendered available a large water-power. As has boon done elsewhere, a private company constructing this canal, where thore is an abundance of water, would obtain the largest revenue from it possible, and design it for both purposes. It has now, to be decided, upon what principle the enlarged canal is to bo treated, whether the Government decide, to obtain a I'ovonue from the full power that can bo obtained, or to make it practically a still water canal, and restrict the Lessees to tho amount of water leased, some 360 cubic foet per second. If the former, the question arises, what is the maximum power available upon the canal ? As will be found, subsequently, on tho old canal, the principal difficulties arose, not Irom tho current in the main body of tho canal, but where the section was con- tracted, or where structures had not been designed, to pass the quantity of water used by the mills. It has, then, to be determined; — first, the current permissible in the canal ; — second, whether this current would become detrimental at any points in the canal ; — third, whether the apertures, at the head admitting the water to tho canal, will Bupply the quantity of water that is designed to flow through it. As was shown in liie report upon the Cornwall Canal, h was not tho current in the reaches, that was prejudicial, but currents, near the locks, normal to the axis of the canal, caused by the bad location of Correnti La canals. weira and races. Upon the old Lachine Canal the bridge piers contracted the 42 section, and wore diflScult to pass through; at ono limo, at the "rock cut," tho eectional water ai'oa, was only 600 t^quaro foot, and when enlarged, was 1,000 pquaro foot, the canal now has a sectional area of 1,950 square feet or nearly tloublo. It has boon quoted, pieviously, from Commissioners ileport 1861, that the current in tho canal, was from two, to two and a-half miles per hour ; if little difliculty was oxporicncod in tho main body of this canal, there could bo none from a carront of a mile per hour in a canal of double the sectional area. In evidence, the people, navigatini^ tho canal, generally condemned the curi'ont as very injurious to navigation, but vvh.'n analyzed it was always in conjunction with some other dis- turbing cause. The following quotati'^ns from tho evidence will substantiate this statement: — " There is danger of collision when vessels meet at bridges, or narrow places ; it would not bo so dangerous it they met in tho main body of the canal. Wo do not find much dilliculty ia tho main body of tho cunal, except when vessels tako a sheer against us. Cote St. Paul lock is tho place wo dread most, whore there is a bar in the canal, whore two currents moot. I romombor once, we met with an accident to the wheel, in the main body of tho canal. I remember no other accident just now in the main bod3^" " It is especially difficult when vessels moot each other, as each vessel has to sheer over to the side of tho canal, when, in consequence of the level being lowered, they are apt to run aground." There A'cro many complaints of vessels grounding on account of tho current, when it would swing them, broadside to it, tho water would bank up ^behind thoi.; and stoj) navigation, until the reach was raised, and the vessel hauled off. If tho levels had been maintained at navigation height there would not have been so many complaints againi^t tho current. Tho St. Lawrence River i» a part of the canal system ; the cui'rents, that are mot with in that river by propellers, and tugs with tows of barges, from which littlo difliculty is experienced, should bo compared with the proposed current in this canal, which in some countries would be a considerable river. At the narrow channel called the "Fiddler's Elbow " some 1,200 feet in length, and 150 feet, to 528 foot, wide, tlie current is over two miles per hour ; at many parts, between rapids, and canals, the currents is over this. The mean velocity, which will be determined subsequently, for this canal, is 1*5 {)er second. Wo will compare this velocity with others given by authorities in this )ranch of hydraulics. In a paper read by M. DoLosseps, before the French Academy of Science, of six years experience upon the Suez Canal, between 1872 and 1878, ho states with regard to velocities caused by the riHO and fall of tides: — "Between Suez and the Bitter Lakes "t varies between 2 feet per second and 4J feet per second. These currents do not at all interfere with navigation." The velocity of ordinary rivers is 2J feet per second. Limits of velocity usual ot canals, is 1 to 4 feet per second. Tho maximum velocity that will prevent the deposit of silt and tho growth of aquatic plants, is about li feet per second. Our assumed velocity, would give a gradient of about 1 in 94,000. The limits of tidal navigation for large canals, is, from 1 in 6,000 to 1 in 16,000."— '(Hydraulic Manual of Statistics). It is evident tho current, adopted, is moderate in a canal whose mean width exceeds, by 60 feet, the combined width of beam of two of the largest vessels that could navigate it. The sectional water area, at the piers, and abutments of bridges, is larger than tho main body of tho canal. Openings, 46 feet wide, and separated by piors, and cribwork, some 20 feet wide, have been made for the ascending, and descending traffic. Vessels would keep their respective sides of the canal, until tho Montreal Terminus, is reached, where the large number of basins, and increased body of water, would so doaden any current, that it would not interfere with vessels moving from one basiu to the other. We may, therefore, conclude, that, a greater current, whioh was not 48 •ock cut," the d, was 1,000 >ot oi* nearly rt 1861, that per hour ; if could bo none In evidence, very injurious )me other dis- bstantiate this f^es, or narrow he canal. Wo vessels takn a ) there is a bar th an accident ident just now vessel has to ' being lowered, 3f the current, ^behind thoi.; cd off. If the I been so many s, that are met n which little it in this canal, arrow channel t, to 528 feet, 3n rajiids, and lis canal, is 1*5 horities in this Science, of six es with regard and the Bitter leso currents do the growth of )0. The limits "—(Hydraulic )e mean width est vessels that is larger thaa by piers, and icending traffic. treal Terminus, pater, would so from one baaiu whioh was not prejudicial to navigation, when the levels were kept up, in a cannl of 3 ,000 square foot ectional area, a less would be no injury in a canal nearly double the area or 1,950 square feet. One, of the complaints, made by owners of barges, upon the old Lachine Canal, was, that it required more horses to tow the same load upon that canal than it did upon the other St. Lawi*ence canals. It has been found, that the best work of a good draught horse, working eight hours per day, is an average pull of 120 lbs., and with a speed of 2i miles per hour, in water without any current. If we take, as example, a barge of 450 tons displacement, and of such a form, that four horses will tow it, at this rale, in still water. The effect of a current of one mile per hour, will bo that the horses, exerting the same work as in dead water, would come down the canal in .3-2 miles per hour with that number of tons, and will tow up against the current at the rate of 1*86 miles per hour. Last year upon the St. Lawrence canals the ascending tonnage was little over one-foui'th of the descending; if the great bulk of the western grain is diverted to this route, this proportion will bo exceeded. TIio ctlci;t of the current will be, under those conditions, no detriment; taking the spec 1 of towing, both up and down i o canal, at 2J miles per hou»', the downward tonnage can be increased to the amouut that would diminish the speed from 3'2 to 2\ miles per hour, and the loss ascending tonnage would more than equalize the (lillercnco between 1*86 and 2^ miles per hour. As a principle, the current is no disadvantage so long as the ascending tonnage, is Bufflciontly less than the descending, to compensate for the retarding influence of the current. It would not h.ive been considered necessary to refer to hoi-ije-towiiig, if not brought forward in this evidence. The era of towing by horses, will hoover, when the St. Lawrence Canals are enlarged and the large class of vesf-els, and barges, adapted to their dimensions, navigate them. If a canal, in its construction, has not had a declivity given to the bottom, to pro- duce motion, the declivity niui*t be given to Ihe surface of the Hydraulic gradient in water, or the lower end of the canal must have a loss depth of Canal. water than the upper. The injurious ell'ect upon navigation of this means of creating a velocity, is exemplified by the evidence with regard to the old Lachine Canal and the present Cornwall Canal. The levels, furnished me by the Engineers' Office at Montreal, show only one inch diflerenco of level between the new Juard Lock mitre sill and the top of the breast wall of Cote St. Paul Look, if this canal is ever deepened for vessels drawing 14 feet, it is evident, tosu])ply the mills now in operation, would require cither the water to bo raised at the Guard Lnck above canal level, or the breast wall lowered. Although this element does not at present enter into the question, as there are two feet upon the breast wall and one foot in the reach to go upon, any design must look forward to the eventual deepening of the Canal to 14 feet. Eecent experiments, upon velocities in canals and rivers, have proved that tho formula), or coefficients, in general use, are erroneous, especially when applied to rivers, and canals, of largo soctiopal area, and a low hydraulic gradient, to which class this canal belongs. Tho most accurate method would be to determine by experi- ment a forrauhe suited to the canal, or tho valuo of tho coefficient C in the formuhc of Ml Chezy,-- v=Ci/irs. The selection of a proper formula, or coefficient, is important, when it is stated tho erosion of tho bed, and the destruction of the works of the Ganges Canal, India, was tho result of the use of, and reliance upon, ihe velocity-formula of Dubuat, by tho Iloyal Engineers. For these calculations th ^ormula of Kuttev is used, adapted by Jackson to Eng- lish feet, this formula is adoptv ' by the Government of India and generally used upon the Continent. It is founded, upon the experiments of Darcy and Bazin and the formulu3 deduced, also upon the elaborate investigation ujion tho hydraulics of tho ^'1^ I* 44 Mississippi Rivor, and the formula) deduced by the United States Engineers Hum- phreys and Abbott, together with numerous investigations, and experiments, by the author himself. The reach, or level, between the Guard Lock, and Goto St. Paul, is some 23,500 feet in length, the gradient taken is 3 inches in that distance, or 1 in 94,000. That is, the canal level would require to bo raised 3 inches at the Guard Lock, or lowered that amount at Cote St. Paul, to give the proposed velocity and discharge. The form, and dimensions, of the water section for this calculation are as repre- sented in diagram. Olhor dimensions are under the head notation. Water Section. ^^ ' tW Notation, (i=Cubic feet discharged per second 2,988*.'^00 V.=Mcan velocity of discharge in feet per second. 1-53i I{.=Area of water section in square feet 1 950"000 P.=Sectional perimeter 173'7C8 A R=HydraulicEadius— 11-221 P L.=A longitudinal length of Canal 23,500-000 H.=Fan in that length -250 H S.=Sine of the hydraulic gradient — 0-000010G383 N =Coefficient of roughness,&o.,(frora experiments.) 020 Formula (^Kutter.) / 1811 0-00281 I +41-6+ q={ U^/lis. / 0-0028 1\ N ( 1+41-6 + — -\ \ S /l/R / From the above, we have a discharge of 2,988 cubic feet per second, and a mean velocity of say 1| feet per second. By the ordinary formula (Q=A 100 y' ES), it would require a fall of nearly 6 inches, which is certainly inapplicable, we may there- fore conclude, whatever may be the actual fall, to obtain this discharge, it will not be any injury to navigation. It has now to be established, whether the orifices, or apertures, for supplying the canal at the head, will admit this quantity of water. Before entering upon this part of the subject, the method. Capacity of apertures, which is necessary to give precision, and definition, under a new for sapyly.to oiaoharKe . t'^ • -uu \ t. t toto canal thU quaa- system of leasing will be stated. ^^' In the calculation, of power Lessees will have to pay for, and the supply at the bead, we require something more defined, i 45 ginoers Hum- tnonts, by the 3 some 23,500 }4,000. That ik, or lowered JO. I are as ropro- i8-;^oo 1 5Hi ,0-000 '3-768 .1-221 lO-OOO 250 0G383 020 id, and a mean 100 V Tw), it wo may there- it will not be r supplying the ter. ct, the method, under a new ave to pay for, g more defined, than, that at Basin No. 2, the head, or fall, varies from 1 1, to 25 feet, and at the Guard Lock from nothing, to 4 feot. A standard head must be fixed, which can only be done by taking the average depths of water over a number of years. The levels, of the water in the River St. Lawrence upon the mitre sills of the upper and lower locks of the canal, have been taken, daily, for over thirty years. For the protection of navigation, the season of navigation need only bo considered, but as the two interests have been combined, it must be determined, what water, or power, can be furnished the mills in winter. I have divided the year into two seasons, one called the season of navigation, and the other the winter season. The canal is not generally navigable as long as assumed, the year has been divided, move on the principle, to give the least head in summer and winter, or a fair division of the year, when the head is fixed, for calculating the power Lessees will be required to pay for. The season of navigation is 24t days, extending from the 17th April to the IGth December, inclusive. The winter season is 121 days, except at leap year, extending from the 17th December to the IGth April, inclusive. The average level of water for each season has been taken, also the average for 29 years. It is proposed, the latter average, be the basis of all calculations, for the ncxl feriod of leasing, that it will be inserted in the conditions, and regulations, which iossees will have to acquiesce in. It would be stated in this manner, — the Govern- ment have established as a basis for all calculations, with regard to water-power upon IhT Lachine Canal, for the length of time the leases are to be executed ; that the level, of the Eiver St. Lawrence, at Lock No. 1, is 20 feot over the mitre sill, and the head, and fall, between Basin No. 2 and the river, is 22J feet for the season of navigatioTi; that the level of the river for the winter season, is 28 feet 8 inches, and the head, and fall, 13 feet 9 inches. At the guard Lock, the average level of the river, for the same length of time, is 11 feet 8 inches, and the head or fall 2 feet 8 inches for the summer; and the level of river 10 feet 9 inches, and the head 1 foot 9 inches, in winter. Without there is some great climatic change, or convulsion of nature, this average will hold good, until the expiration of the term of lease ; if any changes will liave occured in the meantime, in the characteristics of the river, they may be taken into account upon the renewal. Lessees will lease the power, subject to all diminution of power, or supply, below this average for any day, or season, whether occasioned by fiuctuations in the river or the exigencies of navigation. TItere is appended, a table of the average levels of the river at the head, and foot, of canal, during each season, from 1852, to 1882, from which the standard heads are taken. Returning to the supply of water at the head of canal ; — the water is admitted by two weirs, with 24 sluiceways with a combined area of 504 square feet. Their breast walls are a few inches below the level of canal, and have an overfall of 136 feot, which can be used when the river is low enough to remove the stop-logs. During the winter season, the locks not being in use, the sluices, in the lock gates, may be used, giving an additional area of 121, or in all ()25 square feet. It would bo difficult, without experiment, to determine the percentage, of the theoretical discharge, these orifices would supply. I have assumed 62 per cent, and the formula would be, — Q=062 A y^lgh. Daring the season of navigation, it would require ahead of about 1 foot 5 inches, to discharge into the canal L^,988 cubic feet per second. From the table of average heads, it will bo seen, that the standard head is 2 feet 8 inches, and that, in only one season, does it fall below 1 foot 5 inches, viz., 1 foot 4 inches for the season of 1872. It is evident, from these statistics, there will be no difficulty in obtaining, an average supply, of 2,988 cubic feot per second, during navigation. The lowest month of 187' the head was only 6 inches, which would give a discharge of some 1,902 cubic t\ I 46 foet, or 1,082 cubic fcot short, which could bo admitted by opening the lock gates a safe diHtanco. As a head of one foot would give about the discharge required, when it fell below thirt, for any short period, the additional area of supply could be obtained in the manner stated. During the winter season, as no water would be needed for navigation, only the quantity proposed to bo leased for wator-powers, /J,400 cubic feet per second, increased to 3,(i00 feet to compensate for loss of power, through back-water at Basin No, 2, would bo required. As before stated, the area of orifices, for winter supply, is 625 square feet; to give this 3,600 cubit feet would require a head of 1 foot 6 inches nearly; by the table wo find the average head 1 foot 9 inches. Two seasonri the river and canal, were upon the same level, five seasons the heads varied from (J inches to 11 inches. To give the summer supply (2,400), a head, of some 9 inches, would bo nccofi?ary when it fell below 1 foot G inches, the winter supply would gradually diminish to summer supply, and that could always bo maintained, by drawing down the reach, between Cote St. Paul and the Guard Lock, to give a difference of level, between it and the river, of 9 inches, or by open- ing the lock gates to iiicrea-o the area of supply. By this method, the mills at Goto Wt. Paul would lose power, but it would bo more advantageous, than, that the power should bo lost at Basin No. 2 and St. Gabriel. It has now been shown, as far as statistics could prove, that theoretically there is no danger of a repetition of what took j^lace, upon the old canal, at the time the water- powers were leased. If the apertures, in practice, are not sufficient to admit this quantity of water, additional works could bo constructed for that purpose, as the income would justify the expenditure. It is necessary to determine what proportion, of this 2,988 cubic feet, flowing through the canal during the season of navigation, it would bo judicious to lease for water-power. The demands for watei*, upon a canal, are two, first — the loss from filtration, evaporation, leakage thiough the lock-gates, &c., second — the loss from lockages. For the first, any calculations must be approximate, and dependent upon many conditions. Eankin gives for, " waste of water by leakage of channel, repairs and evaporation, per day — area of surface of canal multiplied by ^ of a foot nearly," upon this canal it would amount to about 15 cubic foet per second. For this waste, observations, have been made, upon various American canals, of small sectional area. I have taken an average of several, and allowed for the dilFerenco in sectional area, although the evaporation would not bo relatively so great upon this canal, on account of the climate not being so hot, and the water would not become so heated, as in a small, and shallow canal ; it would give 51 cubic feet per second. Obtaining the leakage, through lock gates, in the same manner, it would give for this canal 30 cubic feet per second. Eankin states, that this waste is from 10,000 to 20,000 cubic feet per day, which of course, depends upon the size of lock and lift. J. B. Jarvis, C.K, estimated the loss upon the old Erie Canal to be 100 cubic feet per minute per mile; for a canal of this area, it would be some 21^ cubic feet per second per mile, or for the whole canal 182 cubic foot per second. For this loss then, according to, Eankin, it would not be over 20 foot per second, observations upon a number of canals 81 cubic feet, and Jarvis 182 cubic feet. In making an allowance for the Lachine Caiial, there are two sots of locks to be taken in account ; with tho exception of evaporation, and filliation, thi8los8,through lock gates, and weirs, depends upon the state of repair the canal is kept in; 200 cubic foet per second is a very largo allowance. Water used in lockages. — An elaborate calculation might be made of this expendi- ture of water; the number of tons used by vessels, according to their displacement, in passing from one level to the other, for this discussion this refinement is unneces- sary. There are two systems of locks ; the traffic will probably never bo sufficient to occupy both ; wo will assume it will bo. Allow 15 minutes for a lockage, and a Quantity of water j u- dicious to lease, for hydraulic purposes. 4t a lock gatoB a equired, when Id bo obtained ition, only tlio lond, increased < Basin No. 2, '6 feet; to give y the table wo e seasons tbo ply (2,400), a it () inches, the could always nd the Guard s, or by open- mills at Cote hat the power itically there is time the water- to admit this •urpose, as the c feet, flowing >n, it would bo ods for water, m, evaporation, -the loss from e approximate, v^esfor, " waste day — area of sanal it would rvations, have have taken an a, although the iccount of tho in a small, and akago, through cot per second. day, which of bo 100 cubic ^ cubic feet per this loss then, t^aliona upon a an allowance unt ; with tho woirs, depends is a very iax'go of this expendi- V displacement, jnt is unnocos- n- bo sufficient lockage, and a lock-full of water is wasted each lockage, without reference to tho volume displaced by tho vessel, it would require for the highest lift upon this canal some 306 cubic feet per second in addition to the 200 cubic feet allowed for leakage, &c. It is now evident, that in tho proposition to lease 2,400 cubic feet for water-powers, ample allowance has been made, 588 cubic feet per second, to prevent any injury to naviga- tion, from excessive draught of water by tho mills. The method of meaHuring water supplied to the mills has been explained. Weir measurement is the simplest whore applicable, it could not be applied at Cote St. Paul or St. Gabriel as the bond and fall is so Measurement of small that the power lost by diminishing tho head, would not be ^* *'' compensated by its advantage ; nor is tho same protection re- quired for navigation at these places, on account of the water being returned into tho canal. At Basin No. 2 as tho water isdischarged into tho rivor, for the measurement of water and protection of navigation, weirs would be advan- tageous ; the mills upon the Henaros Canal, in Spain, are supplied with water over woirs. It has boon stated previously that Mr. Barrett in designing these water-powers had that intention. The reduction of head, by the use of woirs, depends upon tho quantity of water leased by each mill. In the season of navigation the standard head would be reduced to about 20 feet. During tho winter the water woald be supplied through sluices or openings under water; tho head ana fall is 13 foot 9 inches, making an allowance of 9 inches, for fall between head-race and canal, we would have for the computation of power, upon this basin, in winter a head of 13 feet, and in summer a head of 20 feet. It is proposed to lease the water by horse-powers, cich horse-power to be defined, by a specified volume of water, at the difTorent falls, and to bo 75 per cent, of tho theoretical power of tho water. The quantity of water is expressed in one figure for simplicity. At Basin No. 2 h would be 0-6 cubic feet per second per horse-powor in summer, and 0*9 in winter. The leases would read : " Tko said Lessee shall have tho right, and privilege, of taking, and using, from, and outof tho canal of the Lessor, 200 horse-powers of water, each horse-power to be drawn under, and by virtue of this lease, shall consist of 0'6 cubic feet per second, and tio moro, over tho weir in summer ; and in winter shall consist of and be 0-9 cubic I'uct per second, and no moro, through the sluices. At Basin No. 2 there would be an available power of 4,000 horses. Tbo only position in which it can be utilized, is now leased, tho majority of tho lots as mill privileges ; five of them have no water apportioned ; tho Goveinmont have been receiving, only a revenue, from tho rent of the land, for these, instead of tho increased value from tho conjunction of laud, and water-power. It is evident it would be a loss to tho community to poj-mit tho occupation of these mill-sites lor any other purpose than they wore originally intended. Tho power would thus be divided into twenty mill-sites or privileges, with power equal to 200 horses attached to each. If any of tho present occupants required moro power, or less than this, it might bo apportioned, but the principle remains that this po.-*ilion should bo dovotod to the utilizing cf tho water-power upon this basin. Elsewhere, tho value of power, similar to what is furnished upon the Canadian canals, is stated (o bo $10 50 per horse-power per annum ; $5 00 per annum was the price charged ihirty years ago by the Gov- Value of power. ornmont; its cost in the Eastern States has boon given, and a comparison with tho cost of steam-power. Situation and cir- cumstances, the price of coal, and the demand fur power for manufacturing purposes govern its value, as will bo seen from prices quoted from a work by Moncrioff dated 1868 ; — Water to be leased by horse-powers with a specific volume- Power available at Basin No- 2. 4 48 Eastern Jumna Canal, India, H. P. per annum $230.00 Isabella II. Canal, near Madrid, Spain do ...... 119.00 Marseilles Canal, France do 42.00 With which we may compare- Average price several companies, United States, H.P., per annum 1*7.50 Beauharnois Canal, Canada, fl. P., per annum 1.00 On the Marseilles Canal "the tenant is obliged to make all his own arrange- ments for a mill-lead, mill, &c., and must give back all the water into the canal again. The town stipulate that they may close the canal for two periods, of fifteen days each, for silt clearance, repairs, &c., without paying any indemnity. Further, that customers must submit to a reduced supply should the canal discharge be necessarily lowered, or, should it be obliged to bo closed altogether on account of some accident, provided, this x'educcd supply or closure does not last more than thirty days ; if it does, the customers are entitled to a proportional reduction of their rate." It is obvious that Lessees upon the Lachine Canal will not have to submit to restrictions which would render their power less valuable than these would. Power in the heart of the City of Montreal is worth more than, say, upon the Williamsburgh Canals; as a fair price, I have taken $12.00 per horse-power per annum. At Lewiiston, Maine, where there is no water communication, and distant from the great business cities of the Eastern States, its cost is $12.50 per horse- power. The opinion, of a valuator, has been obtained, which is appended, of the present value of the Government land, occupied by the mills upon this canal, apart from any increased value, it may have by its proximity to water-power, or what it would sell for, at auction for other purposes. Directly behind the mil-sites, upon Basin No. 2, the Mon- treal Harbour Commissioners are building a wharf, along which I understand a railway track is to be laid, and placed in communication with the railway system. Both in front and rear, it is so situated, that those mill-sites will become very valuable in the future. These lots when leaaod had each 80 feet frontage and extended to the edge of the Eiver, with a street, (Mill Street), roporved. Between this street and the basin the mills are situated, making a strip of 140 foot wide, and 1520 feet long, ( all measure- ments ai'e scaled off plans.) On the rivor front a division line has been settled upon, and a notarial agreement executed, by the Lessees and Harbour Commissioners ; upon this line the wharf is being built. Streets running at right angles between the river and Mill street were also agreed upon. Some parts of this land lying between Mill street and the Wharf are worth 25c. per square foot, others more. It is obvious that when the leases are renewed, if this property is again leased with the mill sites, the future value should be taken into consideration, to any increase of which, these Lessees would have contributed little. The position, of Tates' Dry dock, accoi-ding to the plans of the present enlarge- ment, is to be occupied by a basin, it is probable that this lease, if the trade of Mont- real would require this basin, would not be renewed, for any long period, it has, there- fore, not been taken into consideration. Three mill lots 80 feet by 140 feet, could be laid off near this basin, where the present mills are situated, which would make 22 lots between which this power could bo divided. The annual revenue, which should be derived from the water powers upon this canal, is as follows : — Value of land oocu- fded by hydraulic essees and annual revenue to be derived from water-pewerj. i 49 }.00 ).00 2.00 7.50 1. 00 s own arrange* the canal again, ftoon days each, , that cuatomers ssarily lowered, idont, provided, ; if it does, the ive to submit to would, I, say, upon the lorse-power per ion, and distant .2.50 per horse- 1, of the present mills upon this lay have by its 1 for, at auction No. 2, the Mon- arf, along which cation with the io mill-sites will the edge of tha id the basin the J, (all moasure- Bn settled upon, issioners ; upon tween the river ig between Mill t is obvious that mill sites, the if which, those present enlarge- trade of Mont- od, it has, there- ftsin, where the lis power could owors upon this Basin No. 2. 22 lots— 80 X 140=246,400 sq. ft. at 80c.=8197,120 at 6 per cent $11,827.20 Between Mill Street, & Harbour Commissioners Wharf, exclusive of 8troets,3 10,000 sq. ft. at 2oc.=$7'7,500 ate per cent 4,650.00 Water power, 4,000 horse-powers at $12. 00 48,000.00 Total yearly revenue from Basin No. 2 $64,477.20 St. Gabriel Lock. The head at this lock is 8'66 feet; the head taken for the calculation of power is 8^ feet, which with the stated percentage, the theoretical power boars to effective, would give 1*4 cubic foot, of water, per second, to each horsepower. The full power of this lock would be 1714 horse-powers, fi'om the plan there appears to be some 71,200 sq. feet occupied by sub-lessees of Young and Gould. 71,200 sq. feet at $1=:?7 1,200 at 6 per cent $ 4,270.00 Water-power, 1,714 horse-powois at $12 20,568.00 Total yearly revenue fi-om St. Gabriel $24,838.00 Cote St. Paul Lock. The head at this lock is 9 feet. It has been shown previously, that during the winter season, in years of low water, it might be necessary to draw down the upper level, to afford a head, between it and the river ; it is proposed to reduce the head 6 inches on this account, in the calculation of power, in which case the same power would be obtained as at St. Gabriel's, and the same quantity of water, 1-4 cubic feet per second to each horse-power. There is some 130,000 square feet occupied in connection with the mills. 130,000 sq. feet at 15 cents=$19,500 at 6 per cent $ 1,170.00 Water-power, 1,714 horse-powers at $i2.00 20,568.00 Total yearly revenue from Cote St. Paul $21,738.00 The following comparison, will show the diiferonce, between the present annnal revenue, and the revenue to bo derived from a fair value : — Basin No. 2, rent proposed, $64,477.20, rent received.. $9,030.00 St. Gabriel, do 24,838.00, do 1,680.00 Cote St. Paul do 21,738.00, do 1,601.00 Total, $111,053.20 $12,311.00 By this proposed change there would be an increased annual revenue of $98,742. For the fiscal year ending June, 1881, the amount expended on this canal for repairs and maintenance was ?t68,9l0; if the Government received what they were entitled to under the present leases, it would nearly balance the expenditure. There is upon this canal in round numbers 10,000 theoretical horse-powers, and as laree a water-power as some of the most important in the Comparison of Water- United States. Powers. Lachine Canal horse-powers 10,000 Lowell, Mass, do 10,000 Lawrence, Mass, do 10,000 Lewiston, Maine, do 7,500 4 50 Cancelling the present leases- The Ousatonic Water-Powor Co., have 2,500 horse powers of permanent water, the surplus or variable water gives a larger power than this, to obtain which a dam containing 451,000 cubic feet of masonry was constructed, 870 feet long and 22J feet high with an apron of timber and concrete. The canal has a sectional area of 840 square feet, and is 3,700 feet long. The charge for surplus water which gives no moresteady power than upon this canal is $16.01) and $26.50 per horsepower per annum for permanent water. It is obvious, from the evidence adduced, that the Government would bo justified in cancelling the present leases of water- powers upon this canal and inaugurating upon the enlarged canal, a new system upon scientific and business principles. There would be complaints of this, of what they would term, arbitrary action of the Gov- ernment, to prevent which I should recommend, that before tak- ing action upon the leases, the Government order the sluices, that at present supply the mills on Basin No. 2 to be closed and locked during the summer, that the stop logs be removed, which will enable the water that is leased and paid for to flow over the breastwall. That at St. Gabriel and Cote St Paul, all the water be closed from the mills with the exception of 20 runs of stones, which has been previously proved to have been all the surplus water at the date of the lease. After a short experience of their own, and the Government's rights, they would gladly enter into new arrange- ments, for the term of years for which the leases are renewed. If these leases had been perpetual, or were to be renewed on the same terms, it is open to deal with the Lessees in the same manner that the surplus water is managed by the Water-Power Companies, in the Eastern States. For the water used above what is leased, new leases could be drawn up and a sufficient price charged for it, to bring the total rents up to the present value. At which action there could be no com- plaint; the Lessees would obtain what they leased, and beyond this the Government have a perfect right to administer the additional water-power created by the enlarge- ment in whatever manner they may deem fit. At St. Gabriel, and Cote St. Paul, additional land, to what was leased from the Government, was bought to utilize the water-power. Two methods could be applied to these places, first, the land belonging to the Government occupied by sublessees might be leased to them individually. The land belonging to the Lessees sub-leased, is no concern of the Government, as they bought only five mill lots and twenty runs of stones, which required no additional land to utilize, therefore it is only a matter which concerns themselves. The water in this case would be leased at the bank of canal ; if several sub- lessees draw water from the same raceway, it would be left to themselves to apportion the water each was entitled to ; they becoming jointly responsible for the rent of the water, which enters the raceway at its junction with the canal. The water, in excess of what is now sub leased, could, in the event of the mills now in operation not requiring more power, be leased to other parties after the necessary land had been acquired . Second. — The Government could expropriate all the hind upon which the present mills are situated, and sufficient additicinal land to utilize the lull power, and lease both land and power. I have concluded a preliminary sketch of a scheme which could be more flilly elaborated if any action be taken. Any design which combines the two features, of water-power and navigation, would be an utter failure if the same course is pursued upon the enlarged canal, as upon the old, and in any event without practical and intelligent management. The canal is large and the supply of water is adequate. Mill owners can draw additional water without interfering with navigation. If the community is willing to submit to loss of revenue, and present the Lessees of hydraulic lots with cheap power, no change is required, and no positive injury will be done except in the waste of power, and the retarding influence upon the advancement of the country in practical hydraulics. As an exomplificatioQ of no management, and some management, of the Govern- i « 51 rmanont water, in which a dam ng and 22^ feet tnal area of 840 vhich gives no )wer per annum >uld bo justified upon this canal iw system upon be complaints ion of the Gov- .hat before tak- 3ont supply the he stop logs be o flow over the ?losed from the usly proved to t experience of new arrange- same terms, it tor is managed ier used above irged for it, to uld be no com- le Government )y the enlargo- lasod from the uld be applied by sub- lessees ees sub-leased, d twenty runs mly a matter the bank of ould be left to oming jointly junction with event of the rtiea after the ch the present or, and lease >e more ftilly id navigation, ^od canal, as ement. ers can draw it the Lessees (sitive injury nee upon the f the Govern- ment as Lessoi'S, and private individuals as Lessors, Basin No. 2 and St. Gabriel may be compared. At Basin No. 2 they were allowed to draw what water they wished, during the season of navigation. Power, and water, required for navigation, were wasted through loss of head, it being immaterial in what position water wheels wore placed, in what manner, or of what class, so long as they obtained water sufficient to drive their machinery. There has been little improvement in the last thirty years. At St. Gabriel the sub-lessoes were required to pay for the water used, as those leasing the power looked after their own interests. Continual changes, and improve- ments, have been made at this place, and there is generally a better class of machinery, than uponJJasin No. 2. In this investigation I had occasion to oxaraino tho systems adopted in France, Italy, Spain and India, upon the extensive canals in those countries. The manner in which private Wator-Power Companies in tho Eastern States manage their water- power is stated elsewhere. The administration of these matters in Canada, compares unfavorably with other countries. I have concluded a history of the water-powers upon the old Lachine Canal, and a scheme proposed to bo ado])led upon the enlarged canal. I have endeavored to obtain by personal research, all evidence afforded by the records of the Department, and Itogistry Offices in Montreal, with regard to tho present leases. Prom the imperfect manner in which the books of the Board of Works were kept, thirty years ago, and documents arranged, and tiled, important information may not have been found, and links of evidence omitted, but tho conclusions arrived at, are such as, what has been adduced appeared to warrant. By the renewal clause, at the expiration of the term of lease, the Government have bound themselves, to renew for another term of twenty-one years, that period was passed some years ago. If tho Lessees at the expiration of their term of lease, did not demand its renewal, their occupancy might perhaps, at present, be considered a yearly tenure, instead of a twonty-ono year's tenure, and the Government in the position to commence de novo upon tho enlarged canul ; a different canal with changed conditions. Whatever rights Lessees may have had upon tho old Lachine Canal, it has to be determined how far they are binding upon the present canal . It has been attempted to prove what those rights are, or what the Lessees are legally and justly entitled to. I have the honor to be. Sir, your obedient servant, ROBEKT C. DOUGLAS, Assistant Engineer Raihoiys and Canals. LIST OP APPENDICES. APPENDIX A. No. 1. — Copy of report of Mr. Barrett, upon which the Governor in Council, sanctioned the sale by Public Competition, of the first hydraulic lots sold at Basin No. 2. No. 2.— Cojjy of letter of tho Secretary of Public Works, transmitting said Report. No. 3. — Copy of Order in Council approving of sale. APPENDIX B. No. 1. — Copy of conditions, regulations, etc., of Mr. Barrett, read at public sale. No. 2.— Copy of certificates of Auctioneers, that these conditions, and regulations, wore read at sale, and tho parties to whom tho lots wore adjudged . 4i >«!•>< 62 No. 3. — Copy of letter of Secretary Public Works transmitting these conditions, and leases for the approval, and sanction of His Excellency in Council. No. 4. — Copy of the Order in Council approving of the leases. No. 5. — Copy ot extracts from lease, wnich incorporates the conditions and regula- tions of Mr. Barrett with it; also proviclos for the payment of any water above the quantity spocifiod. APPENDIX C. No. 1. — Copy of that portionof Chief Engineer's Eeport of 15th January, 1851, laying olf the land and wiitor-power at St. Gabriel in lots and as advertised for salo. No. 2. — Copy of application for the control of the land and water by John Young, Esq. No. 3.— Copy of Statement of Mr. Cantin, of the manner in which the St. Gabriel property was put up and sold at Public Auction. No. 4. — Copy of Eoport of Chief Engineer upon Mr. Young's application. No. 6. — Copy of a part of the Chief Engineer's Eeport, which is attached to Reportof January 15th, 1851, approving of the lease of all the land and water. No. 6. — Extract from a ileport, on water-powers, Welland Canal, 28th June 1847, by the Chief Engineer, when Engineer of that Canal, with reference to leasing to Companies exclusive privileges. APPENDIX D. Valuation of the Government land now leased to hydraulic Lessees upon the Lachine Canal, at its present value at Public Auction, by T. J. Potter. APPENDIX E. Table of wheels, sluices, etc., etc., and approximate capacity of discharge there- from, at the different hydraulic lots. No. 1.— At Basin No. 2. No. 2.— At St. Gabriel. No. 3.— At Cote St. Paul. APPENDIX P. Table of average levels of water, during the season of navigation, and the winter season of the River St. Lawrence at Lock No. 1 and Guai-d Lock, also of the head and fall between rivor and canal at those places. APPENDIX A. No. 1. Copt of Report of Mr. Barrett, upon which the Govermr in Council, sanctioned the sale of Public Competition, of the first hydraulic lots sold at Basin No. 2. Montreal, April 11th, 1844. Dear Sir,— I herewith enclose you a copy of the land belonging to the Board of Works in Montreal, shewing some points for the location of mills, warehouses, ship- yards, &c. At Locks No. 4 and 5 there are good locations for mills which may be connected with extensive warehouses. Grain and freight can be conveyed to them by a rail track from the Basins above them laid parallel to the line of Basin ; those mills will have each 13 feet fall ; if there is an objection to discharging water from a mill at No. 4, this mill may be omitted, placing one at Lock 5. 58 onditions, and incil. 08 and rogulo- of any water ', 1851, laying rtised for sa)o. in Young, Esq. 10 St. Gabriel n. d to Ropoi t of water. June 1847, by to leasing to }oes upon the charge there- At the Bouth side of the old Locks there is a good location for a flouring estab- lishment where the whole fall is at command (26 feet). This may be located cloao to the side of the old Lock, by providing for the working of one wing of the Lock Gate, without the use of the balance beam. The ground adjoining tno Collector's house may bo brought into valuable use. At the point near tlio Emigrants Hospital there is a good locution for mills, commanding the entire head. Each run of stone at this place will not require more that 400 cubic feet of water per minute. A mill may bo placed hero for cutting ship plank. I have marked out ground for an extensive shipyard next to atid above the graving docks. The turn in the canal below this point and the groat width and depth of the canal renders it convenient for launchmg vessels. I have taken the opinion of ship-builders who think it well adapted for this use. I have laid down a canal 60 feet wide leading to the mill sites at tne Hospital, which passes the shipyard, and will add to the convenience for receiving timber, I have marked down the sites for a number of warehouses, at the different loca- tions, Along Wellington Street there may be a number of buildings placed, the lolls of which may bo connected with the warehouses upon the basin with shops below. Or the ground may bo left free and open from the street to the warehouses. The subdivisions of the ground will require a careful revision, but the enclosed will serve as a commencement. We will not bo prepared to lot the water into the canal before the 16th or 16th. The ice has continued so fast in the canal, that some indispensable repairs could not bo made. The forwarders are crying out against the early opening of the canal, as they are repairing their boat*:- "n t. Thoy will how- ever press their repairs under the supposition that the wt ter will be let in as early as the 15th, and will be out of the way. On relation to the water-power created at Montreal by the canal, I am of opinion that there will bo 15,000 cubic feet per minute available without producing a current of more than half a mile por hour including tho supply for the lockages. I have the honor to be, Your obedient servant, ALFEBD BAERETT. id the winter of the head >ned the sale 1, 1844. he Board of louses, ship- lich may be red to them asin ; those utor from a No. 2. Copt of letter of the Secretary of Public Works, transmitting said Report. PnBLio Works, Montreal, 12th October, 1846j Sir, — I have the honor to lay before His Excolkncy the Governor ia Council, by direction of the Commissioners, Mr. Barrett's report on the available water-power at the Montreal terminus of the Lachine Canal . The report was ordered in consequence of a very urgent application having been made by Mr. Merritt and ctherS; for the purpose of erecting a flouring mill at Lock No. 2. Tho site is a very valuable one, and should, in the opinion of the Commis- sioners, be offered to public competition at the same time with the other two marked out on tho Upper Basin — say on the 15th November next. Mr. Merritt states that he would have an extensive establishment in operation early in the spring if he could obtain the site at once, but I am desired to state that in the judgment of the Commissioners, as the one he desires to obtain is the most valuable, it should be put up at auction. He is anxious that no time should be lost, as he thinks it important to have his mill in operation, so as to avail himself of the remaining two years of protection for flour in the British market. Tho Commis- 11 64 sionors thoroforo roHpoctfuIly rcquont that tho dociHion of His Excolloiicy in Council may bo ci'mmuiilcatod to Ihoin an early an poHsiblo. I have tho honor to bo, Sir, Your obedient servant, TUOMAS A. BKGLY, Secretary. lHo. 3. Copt of a Report of a Committee of the Honorable the Executive Council dated IGth October, 1846, approved by Ilts Excellency the Governor General in Council, on the same day. On a communication from tho Secretary of Public Works, dated 12th instant, transmitting the report of Mr. Alfred Barrett, Kn/^ineer, on tho subject of three sites for mills and warehouses at the Montreal terminus of the Lachino Canal, and which in tho opinion of tho Commisnioners should be offered to public competition : The Committee humbly advise Your Excellency to sanction the sale of the three mill sites in question, upon terms to be submitted for approval by the Commissioners of Public Works. Certified, E. PARENT. To tho Provincial Secretary. APPENDIX B. No. 1. Copy of conditions, regulations, etc., of Mr. Barrett, read at public sale. Description of the hydraulic privileges upon the Lachine Canal, novo offered for lease by the Department of Public Works. The lots now offered to be leased are Nos. 9, 10 and 11, situated upon tho south Bid© of the canal basin (No. 2), opposite the forwarding warehouses. They will have each 80 feet of frontage upon the canal basin, from which they will be supplied with sufficient water, calculated to drive four runs of stones by overshot wheels, or enough to propel other machinery requiring an equal amount of power. The lots will extend from a line parallel to 8 feet distant from the face of the coping of the wharf or dockwalls at top, to the river, leaving a road reserve of 40 feet in breadth at a distance of 150 feet from the front of the basin wall. Loaded vessels may come alongside the wharf for discharging and receiving freight; and buildings may be erected fronting upon the basin, provided their front walls are not built within 10 feet of the face of the basin walls. The fall at lowest water in the river opposite these sites, will be about 26 feet, and at the ordinary summer level in the Montreal harbour about 24 feet. During the season of navigation, the water will be supplied over a waste weir of suit- able breadth, the upper edge of which will be six and a-half inches under top water line of the canal, to supply about 360 cubic feet per minute for each run of stones, excepting at such periods when irregularities, in the level of the basin, necessarily arising from a rapid succession of lockages from or into it, may for a time increase or diminish the supply. 66 jnoy in Council Secretary. •\cil dated IGth Council, on the 12th InHtanl, t of tliroo HJtos iiml, and which Jtition : !!vIo of the throe CoramisBJonors PARENT. Hie sale, hredjor lease by upon the south >m which they 18 of stones by 3quai amount of Tora the face of ad reserve of 40 wall. Loaded ng freight ; and t walls are not about 26 feet, i feet. During » weir of suit- nder top water run of stones, sin, necessarily a time increase In winter the water will bo supplied, by sluices, through the walls, the top of which will be placed four foot below the surface of the water in the basin. Flumes will bo constructed behind tlio wall to receive tho water and conduct it to (ho whoels, they will bo placed ono half their breadth on each loi, and carried as fur as 30 feet from tho iuce of the wall at tho expense of the Department, with a partition formed to separate tho water opposite to each lot if necessary, but tho remainder must bo built by the lessee of each lot, and at his own exponso, who will also bo toquired to keep tho whole of it in thorough repair. Tho mill race must be conducted under the i-oad, which is to be formed to such grade as shall be established by the Department of Public Works, after tho race has been completed. There will bo 2 sluices affording a supply for each run of stone of about 360 cubic feet per minute (the sanae as supplied over the woir) for each lot, the machinery for whicn will be provided, placed, governed, and regulated by the Department, and will bo always under its control. For the effective working of the machinery, it will be necessary, while it is run- ning to have a fall of about 12 inches from the surface of that in the Kace immoiiatoly over the wheel, and allowing tho same fall in the Tail Race, the clear head and fall will be reduced to about 22 feet in the ordinary stages of the River during tho summer. Whatever buildings may be constructed by the Lessees, on those lots, shall bo substantial erections of brick or stone, roofed with sheet iron or tin, or otherwise rendered fire-proof, and shall be subject, in all particulars, to tho laws of tho Corpo- ration of Montreal. Tho foregoing description, is given for the information of persons desirous of lorning the Lots, but it is to bo particularly obsorvod that tho Department does not guarantee to the Lessees an}' more water than will be supplied in summer over tho woir and in winter through the sluices Tho water in tho Canal to bo at all times (summer and winter) kept up to full height, except incase of a broach, or when repairs, alterations, or amendments, are to be made in the Canal or any of the works connected with it, requiring tho water to bo drawn off for a time. Tho Lessee is to take the privilege upon tne above con- ditions, and at the risk to himself, of all stoppages, or interruptions, occasioned by tho contingencies referred to and including obstructions from frost in the vicinity of tho BUpp^. Lhe water, in the enlarged Canal on this reach, will not be raised to itsfVill height nntil the Ist August, 1847, — and the Department will not, therefore, guarantee a sup- ply of water until that period. The Department also reserves the right of supplying this quantity through the sluices, or over tho weirs, at any season, at their own discretion. The supply subject in either case to the iiTogularitios before mentioned. It is also to be understood, that in reserving a breadth of 8 feet from the front of tho Lots, parallel to the walls, that it is reserved with a view of allowing the Officers of the Government, a fi'oe passage for making, repairs, or inspection, of the sluices, and races, or for working the sluice-gates or for any other necessary purpose con- nected therewith. ALFRED BARRETT, Engineer. No. 2. Copy of Certificates of Auctioneers, that the conditions, and regulations, we^^ read at sale, and the parties to wham the lots were adjudged. This day, November 23, 1846. — ^The above conditions were road to the audience called together by public advertisment, and the Leases were adjudged subject to the above oonditions as follows : — 56 Lots No. 1 1 to McDougall. do 10 to Thomas Peck, do 9 to Lovott. do 8 to James Harvoy. Each for the sum of one hundred and seven pounds ten shillings per annum. JOHN LEEMING, Auctioneer. Montreal, 23rd November, 1846. The pi'ivileges will be leased for a term of twenty-one years, the rent payable half- yearly. The Lessee to have the option of obtaining a lease for a second term of twenty-one years, the ground rent for such second term to be settled by Experts, or by Arbitration. At the end of such second term, the property with all the improve- ments to revert to the Crown. The Crown to have the power of resuming the property at the end of the first term of twenty-one years, upon paying for all buildings, and erections, standing thereon, at the end of the term, at a vafuation to be settled by Ex- perts, or by Arbitration. The rent to commence from the date of sale. All vessels loading or unloading in any of the Canal Basins shall be subject to such canal regulations as may be established from t'mo to time for the regulating of the traffic of the canal and for the convenience of the trade. JOHN LEEMING, Auctioneer. Montreal, 12th January, 1847. The foregoing conditions were read to the audience, and Water Lot No. 12 was adjudged to Thorno & Howard for the annual rent of £i 08 currency. NORMAN BfclTHUME, Auctioneer to Her Majesty. 22nd May, 1847. At an auction held this day for the sale, pursuant to public at'.vertisement, of Lot No. 13, the annexed conditions were read over and the following additions, and alter- ations, were made as conditions upon which the lot was sold. Page 1. — The lots will extend from a line parallel to, and 10 feet distant fbom, &c., instead of 8 feet. Page 3. — The flumes will be carried back 12 feet instead of 30 feet from the face of the wall. Same page. — The lines scored underneath were omitted, and the following sub- stituted : " There will be one sluice, for each Lot, affording the same supply of water as above stated, and another sluice for each Lot may bo put in at the option of the Department." Page 6. — The water will not be raised to its full height until the 15th September, 1847, instead of 1st August, 1847. Whereupon the said Lot, No. 13, was adjudged to Messrs. Thorne & ITeward.for the annual rent of £108. And upon request of the company present and with the consent of the Commissioners of Public Works, the adjoining Lot No. 14 was then por annum. [NG, Auctioneer, tnbor, 1846. 3nt payable half- socond term of by Experts, or ill the impi'ove- ng the property 1 buildings, and le settled by Ex- a. ill bo subject to bo regulating of NG, Auctioneer. Jary, 1847. Lot No. 12 was MB, r Majesty. tfay, 1847. isemont, of Lot ions, and altor- distant from, from the face following sub- ipply of water option of the >th September, & He ward, for and with the . 14 was tbeo »? put up, and adjudged upon the same conditions to Mi*. Gould at the annual rent of £108. JOHN LEEMING, Auctioneer. No. 3. CovY of Letter of Secretary Public Works transmitting these conditions, and leases for the approval and sanction of His Excellency in Council. Public Works, 3rd July, 18'74. SiR,^I am directed to enclose two leases of water-powor, on the Luchine Canal, to Mr. Gould and Mossrs. Thorno & Howard, and I request the sanction of His Excel- lency in Council for perfecting the same in accoj-daiico with the Act 9 Vic, chap. 37. I have the honor to be, Your very obedient servant, The Hon. D. Daly, Provincial Secretary, THOMAS A. BEGLY, Secretary, No. 4. ExTRACT/rom a Report of a Committee of the Honorable tJie Executive Council on Matters of State, dated 15th July, 1847, approved by His Excellency the Governor in Council on the same day. On t>>o letter of (ho Commissioners of Public Works, dated 3rd July inst., trans- mitting two leases of water-power on the Lachino Canal, and requesting the sanction of Your Excellency in Council for perfecting the same in accordance with he Act 9 Vic, chap. 37 : The Honorable the Attorney-General for Lower Canada, to whom these leases have been submitted, states that having perused the leases from the Commissioners of the Public Works to Ira Gould and Mosprs. Thorno & Howard, he is of opinion that there exists no objoctintion Your Excellency's approving of the same. The Committee therefore humbly advise Your Excellency to approve of the leases accordingly. Certified, W. H. LEE. No. 5. ExTBACTB from lease, referring to conditions read at sale, and the clause binding Lessee to pay for additional water used above the amount specified. Subject however to the conditions hereinafter mentioned, part whereof wore road over, and agreed upon at the time of sale, of the said lot, by public auction on the 22nd day of May, and the remainder have bcon since agreed upon between the parties hereto, and are substituted as containing the final and express conditionf^ upon which the lease of Lot 14 and the supply of wr^er thereto is grunted, and such parts of iho conditions of public sale as a o repugnant hereto are hereby rescinded, and such other parts a^ are not hereby rescinded are to remain iu force. 68 That should it hereafter be found that the said sluices will admit a greater volume of water than will be sufficient to propel four runs of mill stones and machinery, by means of the most approved wheels, the said Ira Gould should not be entitled by this lease to receive the whole thereof, but the said Commissioners shall and may regulate and lessen the volume of supply to him, by lowering the sluice gates. That should the said Ira Gould bo desirous of obtaining the whole of the water- power that can be supplied through the said sluices, the said Commissioners, will, upon receiving the sanction of His Excellency in Council, grant it upon determining the amount of additional rent to be paid therefor. And the said Ira Gould for himself, his executors, administrators and assigns, doth hereby covenant and agree with the said Commissioners, and their successors in office, that he will well and truly pay the said rent in manner aforesaid free from any deduction Nor will he have a claim or right to the whole of the water that could bo supplied through the said sluices, in case they should be found more than sufficient to propel more than four runs of stones and machinery. And that the said Commissioners and their officers, may at all seasonable times have access to the said premises that they may consider necessary connoctod with the management of the said canal, or for the purpose of examining the condition of the slid flume, or for ascertaining the amount of water used or supplied through the sluices," f APPENDIX C. No. 1. Copy of that portion of Chief Engineer's Report of 15th January, 1851, laying off the land and water-2)0wer at St. Gabriel in lots and as advertised for sale. At St Gabriel Lock. The head and fall of this lock is eight and a-half feet. Lot No. 22 has a frontage of 165 feet on the canal, width in rear 125 feet, :ind depth 125 feet, reserving a pas- sago in front of 12 feet in the clear for a towing path. Lots Nos. 23 and 24 have each a frontage on the canal of 132 feet, reserving 12 foot in front for a towing path. A right reserve for passing water through the common race-way of Lots 22, 23 and 24 for supplying Lots 22 and 23 as well as for any other lots that may hereafter be granted nearer the City. The parties taking these lots are also to bear equally the expense of constructing the common race-way for supplying the water-power at the head of the old lock. Lot No. 25 is the Island in connection with the lock containing a little upwards of three arpents in area, and is adapted for the construction of a dry dock. Lot No. 26 on the south-east side of the canal has also been laid off for a dry dock, for which purpose it may ' ^ used bj enlarging the swing bridge at the Priest's Basin, or making a floating brici instead of it and oy deepening the biisin. The water to be admitted by a pipe lai>. in connection with the race-way or flume from the head of the lock, which may be used for propelling the machinery and pumps to be established in connection with the proposed docks. This lot is 277 feet in width and 582 feet in length, reserving 12 feet for a towing path above the lock, and a right for passing the water from the tail-race of lots 27 and 28, or any other lots, hereafter to 1)6 granted to the westward of them into the basin connected with the canal . Lot No. 27 in south-west side of the canal has a frontage of 132 feet on the canal, and a depth of 264 feet on the north-east and 257 feet on the south-west side, reserving a passage in front for a towing path of 12 feet in the clear, and a right for passing the water fi-om the tail-race of lot 28, or any other lot in future granted to the westward. Lot No. 28 has a frontage of 132 feet on the canal, and a depth of 257 feet on the north- 69 admit a greater " mill stones and ild should not be missioners shall voring the sluice >Ie of the water- imissioners, will, pen determining ors and assigns, leir successors in lid free from any the water that bund more than nd that the said ccess to the said aagement of the laid flume, or for »8." 51, laying off the lie. 52 has a frontage reserving a j)a8- 23 and 24 have •r a towing path. ay of Lots 22, 23 at may hereafter 9 of constructing the old lock, little upwards of >ck. ff for a dry dock, le Priest's Basin, . The water to from the head of to be established 1 width and 582 and a right for lots, hereafter to e canal . on the canal, and jide, reserving a j for passing the o the westward. >et on the north- east and 250 feet on the south-went side, reserving 12 feet for the towing path, and a passage for the water from the tail-race of any lot that may in future be granted to the westward. A road 40 feet in width has been laid off in rear for the accommodation of Lots 26, 27 and 28, and connected with the road extending along the canal from Brewster's Bridge to Wellington Bridge. The parties leasing these lots are to boar equally the expense of opening the tail-race common to all, and each party to construct thoir own flumes for receiving and discharging the water. Tho conditions in regard to the dock Lots Nos. 25 and 26 are the same as those attached to the dock lot No. 21, at W ntroal. No. 2. Copy of application for the control of the land and water by John Youncj, Esq. Montreal, 12th December. 1852. Sir, — I beg to enquire whether the Board of Public Works are willing to lease the whole of the lands and privileges on the Lachine (Janal included under the third head of the public advertibcment, to an association of individuals, they (the latter) binding themselves to make all the necessai'y sluices and other works (hereto con- structed by the Board of Public Works,) and also to acquire all the necessaiy lands exterior to those belonging to the canal. The parties with whom I act in this pro- ject, are anxious to have the entire control of the water-power of this section of the canal, and should the Board be favorably dibposed towards this proposition, they are prepared to make an off'er for the entire surplus water of the level above St. Gabriel Lock, so soon as they are informed what conditions and restrictions may be deemed necessary on the part of Government. I have the honor to be, Sir, Your obedient servant. Thomas A. Begly, Esq., Secretary Board of Public Works. JOHN YOUNG. No. 3. Copy of Statement of Mr. Cantin, of the manner in lohich the St. Gabriel jmperty was put up and sold at Public Auction. Montreal, 4th February, 1882. I was present at the auction sale of water privileges at St. Gabriel Lock, on the 14th February, 1851. The property was offered for sale by the auctioneer, in five mill privilege-*, with 20 runs of stones attached, and was sold to Messrs. Young & Gould, with the amount of power specified, (or four runs of stones to each privilege) in one block, for four hundred and twenty pounds currency. Witnesses : C. A. Cantin. R. C. Douglass. (Signed) A. CANTIN. 60 No. 4. CovY of Beport of Chief Engineer upon Mr. Young' S' application. Public Wokics, Toronto, 21st December, 1850. Sir, — Respecting the application of John Young, Esq., on behalf of a company proposing to lease ail the surplus water of the Lachine Canal passing round the lock at St. Gabriel, I have the honor to state — It appears very desirable for the general interests of the country to encourage the formation of such companies for the establishment of machinery and using the water-power along the lino of the canals, and it may even be considered advisable to give a preference to the application of companies over those of individuals, wherever, as in this instance, the company can oflor satisfactory reference as regards their capital and capabilities of bringing the whole power into full operation. But, however desirable it may bo to encourage companies, and the introduction of capital, it is to be feared the Commissioners cannot in this instance with propriety overlook the claims of previous applicants. There are now in this office several applications for privileges at this lock, some of them of more than two years' standing, and according to the principle and prac- tice regulating the disposal of such lots, i.e., of sotting them up at public auction whenever more than one application is received for the same lot, there appears to bo no way loft to advertise the whole, or all at St. Gabriel. In this case the Company will have an opportunity of obtaining entire coutiol jf all the surplus water at this lock as they seem desii'ous of doing. For the conditions attached to the leasing of the water-power, Mr. Young may bo referred to the printed ones sent to Mr. Gough at Montreal, who can also inform him as to the upset price placed on each lot. Six mill lots of 20 runs of stones each have been laid off on St. Gabriel, at an upset rental of £100 per annum for each, and a seventh lot, consisting of the island above and adjoining the locks, suitable for a dry dock, with water-power equal to four runs of stones, at an upset price of £150 per annum— making in all £750 per annum for the water privilege. It will, how- ever, bo necessary for the Commissioners to obtain more land before the whole power can be ap))lied, and it may also be prudent for the present to restrict the sale of leases to five privileges of four runs, equal to 20 runs in all, until it is seen how tho canal can be regulated for the navigation with so much surplus water passing round tho locks. I have the honor to be, Sir, Your obedient servant, (Signed) SAMUEL KEEFER, Chief Engineer, Public Works. m fo sp Ej No. 5. Copy ofaj^drt of Chief Engineer's Report lohich is attached to Report of Jaunary Ibth, 1851, approving of the lease of all the land and water. Hydraulic Privileges, Lachine Canal. In consequence of it having been intimated to the Department of Public Works that certain parties at Montreal are desirous of purchasing the right of using all tho waste land and surplus water disposable at the St. Gabriel Lock, it is respectively submitted that no objection appears to present itself to carrying out such an arrange- ition. ONTO, embor, 1850. f of a company g round tho lock try to encourage y and using the ored advisable to duals, wherever, 13 regards their on. tho introduction 10 with propriety .t this lock, some nciple and prac- t public auction )re appears to bo se the Company lus water at this Mr. Young ma}' < can also inform IS of stones each km for each, and suitable for a ot price of £150 It will, how- the whole power the sale of leases n how the canal ising round the RFER, iblic Works. >/ Jaunary 15th, Public Works of using all the is respectively ich an arrange- 61 ment, provided that the following conditions, in addition to those already specified for granting the privilege separately bo complied with. ^U ^U ^^ %^ %lj ^« \lt «v ^l* ^* rf* *f« ^* «^ ^^ *Jh »J% rj^ Upset rental for the whole privileges £500 per annum on the conditions above specified. (Signed) SAMUEL KEEFER. No. 6. l^xTRAOT from a Eeport, oti water-powers Wetland Canal 28th June IS i^J, by the Chief Engineer, when Engineer of that Canal, with reference to leasing to Companies exclusive jmvileges . " I am aware that a proposition has been made fo tho Government, on behalf of a company, to be formed for that object, to buy out the whole of tho wator-powor ; and if it can be satisfactorily proved that tho power would sooner be brought into use, without at the same time producing any inconvenience to the navigation, by com- mitting it to the management of a company, it would undoubtedly be good policy to do so. " But the history of this canal teaches otherwise. And experience has proved that it is a dangerous thing to create an exclusive interest upon the canal, at variance with the interest of the navigation. It was for this reason that the Welland Canal Company were at length compelled to buy out the old Hydraulic Company, wljich for several years enjoyed a right to all tho surplus water of the Canal. " For the encouragement of individual enterjjrise there is nothing to prevent the (jovernment selling privileges at least as cheap as a company could afford to sell them, and it is not unreasonable to suppose that capitalists would prefer taking a lease from the Government direct, rather than from an intermediate party, whoso interest it must be to make large profits out of the sub-division of the power." APPEI^DIX D. [Valuation of the Government Land, noxo leased to Ilydmulic Lessees, upon the Lachine Canal, at its present value at Public Auction. Montreal, 18th February, 1881. Dear Sir, — I beg to amend my valuation. The lots on Mill Street I value at 30 cents per square foot. Tho lots south of Mill Street, i. e., boLwcon that and tho river, will only be valuable when filled up and wharf is built, I therefore cannot, jlace a higher value on thom than 25 cents per square foot. The land known as " Tate's Dry Dock," is only saleable as land at 20 to 25 cents per square foot at jjrosont. The St. Gabriel properly [ repeat my former estimate jf, viz ,$1.00 per t-quare foot, and as icgards tho Cote St. Paul property, I also repeat ay valuation of 15 cents per square foot. These valuations are, as requested by S'ou, estimated as the value of the land at public auction apart from any other con- pidoration. 1 enclose plans, and hope that the iufurmation wJl bo satisfactory. Yours respectfully, THOMAS J. POTTER. I. C. DoDOLASs, Esq., Department of Railways and Canals, Ottawa. ^ 62 APPENDIX B. No. 1.— Table of Whcelw, Sluices, &c, &c., and approxiraato capacity of discharge therefrom at the different Hydraulic Lots, Basin No. 2. I ■i I. II. III. IV. V. VI. VII. VIII. IX. X. p.m J.O o^ Quantity of Wa er discharged ft. per second. ^ ■ >? No. of Lot. Lessee. Amount Leased. Descrii)tion of Wheels and Size. Dimen- sions of Gale Opening Oh, i.5 u a Head. EH •s § . o— ■ H 1 & KJ-2 Frotbingham & Workman... W. P. Bartley & Co... None WJ-2, 3&4.. Sampson do 1 II 3, 130 / 1 1 10, 3 14 5, 6 & 7. 4,0 280 10, 3 30 44 24 5 4EJ-6 James McDougall 4 runs Tyler do 4,6 4,6 18X19 18X19 342 342 9,6 9,6 .35 35 do 3, 14X20 280 9, 6 29 Leffel 4,6 9, 6 49 148 WM, 7, 8, 9 & 10 24 Peck, Benny & Co.... Leffel 6, 16, 170 C.Vent 5, 6 11X34 374 9,6 38 Tyler 6, 16X30 480 15,0 62 — 6,0 16X30 480 14, 60 Leffel do 4,6 4,0 14, 14, 70 54 454 72 11 James McDougall 4 runs C. Vent do 4,6 do 94X24 9. X24 228 228 15,0 15, 29 29 do do 8 X24 204 15, 26 do do 9 X24 216 15,0 28 do 4,10 7 X19 136 15, 17 do 4, 7 8 X20, 160 12, 6 20 do do 7iX20| 153 12, 6 18 167 24 12, 13 & 14. Ira Gould 12 runs Tylers do 5, 6 do 8] X2a x2o; 174 174 19, 19, 25 25 do do 7J X20 150 19, 22 do do 7 X20 140 19, 20 C. Vent do 7 X20 140 19, 20 do do 7 X20 140 19, 20 do 4,9 7 X17. 1.30 19, 19 do 4,6 9 X22. 219 15,0 28 do 5,6 10 X22 231 15, 30 do do 9 X22 209 15, 27 do do 9 X22 209 15, 27 do do 9 X22 209 15, 27 do do 10 X22 220 15, 28 do do 10 X22 231 15, 30 do do 10 X22 231 15,0 30 do do 10}X22 231 15, 30 408 72 16 A 16 Pillow, Hersey & Co. 8 runs C.Vent Tyler 3,2 5, 15 X22J 18 X22 337 396 15, 15, 43 51 5,6 18 y24 4^2 15, 56 C.Vent 5,2 9 X24 216 15, 28 Tylor 4,6 17 X18 300 16, 39 217 200 48 If Wm. Lyman tc Co.... 4 runs Lcffcl do do do 4,0 4,0 4,0 3,4 259 250 259 180 16, 16, 16, 16, 56 56 56 38 24 Carried forward.. 48 runs 1044 288 sity of discharge 2. VIII. o S " ^J3 CD gx) p. IX. 2 be a u d OS _ o ■3.2 14 30 35 29 49 170 38 62 60 70 64 X. a 29 29 26 28 17 20 18 25 25 22 20 20 20 19 28 30 27 27 27 28 30 30 30 43 51 56 28 39 56 56 66 38 44 148 24 24 454 167 72 24 63 APPENDIX B.— No. 1.— Basin No. 2.— Concluded. I. 11. _,_ III. IV. V. VI. VII. vin. IX. X. A 6 No. of Lot. Lessee. Amount Leased. Deflcription of Wheels and Size. •8 <» a . O n TO u ^^ TO Head. titv of Wa iscnarged er second. *■♦-• V 03 a £•3 as- 3 " ^-o II Q 4) verage Water lower M .9 4)^ verage Water lower 11 ead, or tween t and Bas 4> verage ofWate above M ead, or tween E Canal. - 9 2,oj i-q -t1 K h-) <) a 1-:; Ft. in. W J •< a Ft. in. Ft. in. Ft. in. Ft. in. Ft. in. Ft. in. Ft. Ft. in. Ft. Ft. in. Ft. in. 1852-53.... 42 5 30 6 11 11 42 5 20 5 22 9 11 5 2 5 9 12 1 3 1 1853-54.... 42 5 30 1 12 4 42 5 19 11 22 6 9 10 10 1 10 9 11 5 2 5 1854-65.... 42 5 26 11 15 G 42 5 20 5 22 9 9 11 11 9 11 6 2 6 1855-56.... 42 5 24 10 17 7 42 5 19 2 23 3 9 10 6 1 c 9 11 2 1856-57.... 42 5 30 3 12 2 42 5 21 6 20 11 9 10 11 1 11 9 12 9 3 9 1857-58.... 42 5 29 9 12 8 42 5 21 1 21 4 9 12 3 3 3 9 12 7 3 7 1858-59.... 42 5 29 4 13 1 42 5 20 10 21 7 9 11 7 2 7 9 12 6 3 6 1859-60.... 42 5 29 8 12 9 42 5 19 11 22 6 9 11 7 2 7 » 11 8 2 8 1860-61.... 42 5 31 5 11 42 5 21 11 20 6 9 11 1 2 1 9 13 4 1861-62.... 42 5 30 7 11 10 42 5 20 11 21 6 9 12 3 9 12 5 3 5 1862-63.... 42 5 28 5 14 42 5 20 5 22 9 11 2 9 12 3 1863-64.... 42 5 30 8 11 9 42 5 20 3 22 2 9 11 2 9 12 2 3 2 1864-65.... 42 5 30 5 12 42 5 19 6 22 11 9 11 4 2 4 9 11 6 2 6 1865-66.... 42 5 27 4 15 1 42 5 20 4 22 1 9 9 9 9 9 11 11 2 11 1866-67.... 42 5 31 3 11 2 42 5 20 8 21 9 9 11 8 2 8 9 12 1 3 1 1867-68.... 42 5 27 8 14 9 42 5 18 1 24 4 9 9 10 10 9 10 7 1 7 1868-69.... 42 5 27 1 15 4 42 5 21 7 20 10 9 9 7 7 9 12 5 3 5 1869-70.,.. 42 5 31 5 11 42 5 19 li 22 6 9 11 8 2 8 9 12 1 3 1 1870-71.... 42 5 28 2 14 3 42 5 19 3 23 2 9 10 9 1 9 9 11 1 2 1 1871-72.... 42 5 27 15 5 42 5 18 7 23 10 9 8 8 9 10 4 1 4 1872-73.... 42 5 25 8 16 9 42 5 20 7 21 10 9 9 6 6 9 11 7 2 7 187.3-74.... 42 5 31 11 5 42 5 19 6 22 11 9 11 3 2 3 9 11 4 2 4 1874^75.... 42 5 26 5 16 42 5 19 7 22 10 9 8 11 9 10 8 1 8 1875-76.... 42 5 28 8 13 9 42 5 21 4 21 1 9 10 11 1 11 9 12 7 3 7 1876-77.... 42 5 29 9 12 8 42 5 18 24 5 9 10 7 1 7 9 10 9 1 9 1877-78.... 42 5 25 6 16 11 42 5 19 23 5 9 10 9 1 9 9 11 7 2 7 1878-79.... 42 6 26 11 15 6 42 5 19 1 23 4 9 11 7 2 7 9 11 5 2 !) 1879-80.... 42 5 28 3 14 2 42 6 19 2 23 3 9 11 6 2 6 9 11 8 2 8 1880-81.... 42 5 26 3 16 2 42 5 17 2 25 3 9 10 5 1 5 9 10 9 1 9 Average . . 42 5 28 8 13 9 42 5 19 11 22 6 9 10 9 1 9 9 11 8 2 8 md the "Winter k ; uluo uf head CK. Season of Navigation, average of 244 days. o > s .9 is n •3 a oj lit w t. Ft. in. Ft. ill. 9 12 1 3 1 9 11 5 2 5 9 11 6 2 6 9 11 2 9 12 9 3 9 9 12 7 3 7 9 12 6 3 6 d 11 8 2 8 9 13 4 9 12 5 3 5 9 12 3 9 12 2 3 2 9 11 6 2 6 9 11 11 2 11 9 12 1 3 1 9 10 7 1 7 9 12 5 3 5 9 12 1 3 1 9 11 1 2 1 9 10 4 1 4 9 11 7 2 7 9 11 4 2 4 9 10 8 1 8 3 12 7 3 7 9 10 9 1 9 ) 11 7 2 7 d 11 5 2 !. 3 11 8 2 8 3 10 9 1 9 J 11 8 2 8 C7 LAcniNB Canal. Description of manufactures and ma^ 'linory using IlydrauHo Power, leased from tho Govcrnmont, Basin Ko. 2. Knmber of Lot. No. I and E. §... \V. J 2, 3 and 4,. do .Vo. 5 and E. J 0. Name of Occupant. Frotliinirham k Work- luun... King & Rodj^crs,, Description of Munufiictory and Machiacrv. Xo power used . .Mnllonblc Iron 'Works — lathes, di'illinjrand boring machines. \Vm. iloullbj- Griiuling— Patent Roofiap; (both mills in construction). •Jamos McDousall. W. J 6, 7, 8, 9 and, lo Pock, Benny il Co N'.rl plato and spike rod.-}— 2 roll- Flouring Mill— 4 runs oi stones and macbinerv. Xo. 11 N'os.l2,.13aadl4 ill'' mills. .Inrnos .McDoiisull jri'-'nring Mill— 5 runs of stones aad machinery. Ira Gould k Co. Flouring Mill— 11 runs of stones and machinery. Nos. 15 and 16... Pillow, ITuriey A Co [Ta'-k and Bolt Manufactory— 10 bolt, 9 nut and 10 turning ma- cbiaes 8 pointers, 20 threading, 7 tapping machines, 50 tack and null machines, &c. •tio. 17. Nos. 18 and 19.., Dry Dock Lot. do' Win. Lvman k Co. Montreal Warehousing Co E. Tate. Moonev & Co. Linseed Oil and Spice Mill— Paint and Putty Manufactory— 3 runs of stones, 2 rollers, 4 presses, li' chasers, 4 paint mills, 1 set rollers, p itfy i lill and other machinery. Flo'.ir Mill not in operation — (Grain Elevator uses power). Shipbuilding and repairing — 2 circular saws, &c. Horse Nail Factory— 40 n.iil ma- chines. Total 9,030 00 Rent. $ cts, C50 00 1,128 GO 645 00 1,725 00 4;;o 00 1,20(3 CO 800 00 4^0 fO 860 GO 1,000 00 Number of hands Employed. 60 10 100 20 200 SO 10 30 TO fi86 08 LACniNE CAKATi. Description of njRnufttcturcs nnd machitioiy, at St. Gabriel Wnlor power; Rent, 11,680. Young & Gould, Icshcoh, now Ira Gould it ('o. Orrupnnti. Dc3Ciiption of Manufiicttircs nnd Mnohinrrj-. • II ftffilTie 4 Co Flourinpf Mills— 32 sets of rolls, 8 runs of stoiip, 22 purifiors, CO bolts, 2 smutlcra, 4 separators, 2 brusliesandelevalinj; machinery. Foundrjr and Machino Shop— 1 steam hnmmor, drills, lathes and general machinery. Agricultural Machinerv— -1 naw. 1 nlaner. 1 eJ^cr. &c CO John McDoucrall 250 John Smith 10 do File Works— File cutters, trin hammers. &c 30 C. 0. Holland Felt Workfl— 2 flf tfl nf Cftrrls 3 fpltrnff marhlnpff. Ac ..» 30 Qreen & Co do do do do 20 Montreal Woollen Mill Low Woollens— 4 sets double cards, 53 looms, 2,0ic;3pindles. Nail Works- 35 nail machines, 1 spiko machine, shears, planers, drills, &c. Granite and Marble Works— 2 marble cutting machines, 4 polishing machines, 2 euws, 1 rubbing buJ, 3 turning lathes, tic. Fancy Blankets, Suspender Web, Ac- 2 double sets of cards, 18 looms, 480 spindles. Paint Manufactory— 12 paint 'mills with other machinery, machine and tin-shop. Car Wheel Works — 3 furnaces, kc, 1 fan 150 Crathern St Caverhill. 40 R. ForBVth 00 Montreal Blanket Works C5 Win. Johnston 80 McDoueall b Connors 50 A. Cantin n. Rvle & Co Ship-building and Repairs, Sash nnd Door Factor) — Saws, planers and general wood-worUing machinery. Silk JIanufactorv— 12 looms. 2.000 suiuillca 50 50 W. Mocock & Son Axe Factory— 5 trip hammers, 6 grindstom p, 2 pair i-hears, 6 polishers, &c. Sash and Door Factory— 7 saws, 4 plaiic.i auj general wood- working machinery. Ronfinff Ar.iterifll. Orindino*. &c....... 2.'5 John Oatell 50 N. R. Mudgo James Shearer Morelaad, Wataon & Co 5 Sash and Door Factory— Saws, planes. ••> ml general wood- working machinery. Saw Works— Grinding, cutting and polishing m.ichinery, *c. Rope and Plaster Mills— CorJngemnchinery nnd millstones.. Total CO 15 J. A. Converse 200 1,300 69 power ; Rent, m 9 »< CO 250 10 30 30 20 150 40 00 66 80 50 CO 50 25 jnvl wooJ- 60 5 rnl \rood- 60 jincry, r and Edge Tools— 5 trip hammers, 4 presses and other machinery. A Leather board Factory about to be constructed 260 100 30 15 25 Total. 50 15 55 60 09O 70 Ottawa, Bcocmber 5lh, 1882. Hon. Sir CnAiiLEs Titpper, C.B., K.C.M.G., Ministoi- of lu'iihvaya and Ciinals, Ottawa. Sir,— I have >ti honor to transmit, for your consKloralion, a confidential report upon tlio water-poworH, undoi- tlio control of your Dopartnacnt, on tho IJoau'iarnois, Cornwall, Williamsbnr/fli and Wellaud Canals. Thermo, with lirevious reports, will enable you to form an oyiinion of tho present condition of this brunch of hydruulic;-i, and the extent of the inaiiuf'acturing indut»trios established, upon tho important links, in the Cfuiiilian water rou.'o from tide-water to the lakes, the St. Lawrence and Wellar \ Canals. Tho water-power, leased upon the subsidiary e:ina1?>, is of small extent, and, ;)t the present, is not of sufficient importance to bo included in this sories of ro])0t.« 1 have the honor to be, Sir, Your mo it obedient .'orvant, ROEERT 0. DOUGLAS, Asshtanf Eng'necr, Eailways and Giti'i/s. 71 BEAUITARNOIS CANAL. or Sill, 1882. i;il report upon tlic 'larnoifl, Cornwall, lion of tho present [I'.'liiriiig iridaHtrio> lo horn tidewator fill cxtcjit, and, ;)t Horio!i of rc])0 't?. GLAS, /s and G mils. Tho Iicaulmniois Oaiuil is sitimted on tho eoath eido of the Rivor St. Lawrenfo 15 miles fiora (ho bcucl of iho Lachino Cunal, and, by water communication, 23 milo«i from tiio city of Jlontrcai. Vallcytiold, at tho head of tho Canal, where the greato'^fc )u)\ver has been crcalc bo constructed, that wiil bring railwaj' communication to tho doors of tho mills, is .37 miles by rail from Montreal. The Catisil is 11;^ miles in lon/^th, and connects Lake St. Louis and iSt. Fiancifc!, between which are three lapidn, tho Cascades, the Cedare, tho Coteau. Tho rapids, and intorvcnin,'; stretches of river, havo a fall of 8l-\ feet, which, upon the c.inal, is divided into lifts of from 8 ft. to 11 ft., by 8 locks, and a fcmall lilt at tho (iiia!-50 waste weirs are built, it will not bo prudent to lease out water for maehinery, oscopt at the dam. Tho cost of these weirs is estimated at £9,790, and tlusir coDstiurtion ptron^-ly recommended at as early a period as tho finances will aifnit of." Tho co;it of tho weirs, when constructed, was about $68,000 ; for this expendi- ture or ih:it portion of it no,- chargeable to navigation, there has, as j'et, been little letuiu. There is only one mill privilege leased upon the canal, at 81-0.00 per annum lor fV.'ur inns <>f htoiio-*. Tho canal running through a farming district, no centres of populalion in close roximity, ainl no railway communication, thoie has been little dereand for iho jiowur al iho locks, which is consequently of less value than upon other . anals more favorably situated. Some ii.OOd horsepower cou'd be leased at tho ditt'orent locks without deirlnjent to navigation. The total fiill overcome by tho canal is 82 feet G inches, and mill sites could bo obtained at conven.ent positions near tho locks, the head or fall ai which varies from 8 feet to 1 1 feet, TIjo value of power upon tho caual proper should ho 1810 per horso- power, including mill sites. Sovcral years after tho construction of tho canal, for the purpose of diminishing the current and raising the water on several shoals, at tho upper Power created, entrance, one of tho principal channels, and an opening between two pm.onnected with . , 1 ,. ..1 i>- e* i i 1 i 1 1 • i I the cttual proper. iMJauds of tho liiver St. Lawrence, woi'e closed by dams, which created a largo water power at a short distance from tho head of tho |canal, unoonnocted with it and with Lake St. Francis, or tho_liiver St. Luwrenco, as a resorvoir to draw from. To etTcct the objoct contemplated — tho improvement of navigation — inero were Itwij method-? or projects, either to dredge a channel throu^^h the dilfercnt shoals, or, jto raise the water upon lhi?m by damming a section of the river. That the current Jwus not very prejudicial and would no*, justify the largo exponditora which has 11 rosultod from the dam, is evident, from this quotation from the report of the Com- missiouevs' of Public Works, for 1844: — "Since the channel has been deepened, the objoction to it, by those disposed to cavil, is chiefly that the current there is too strong and will prove inconvenient. The answer to which is, tnat the current is not wilhiii two miles an hoar equal to that of several parts of the same navigation above anJ where no improvements have ever been contonipluted or considered requisite; and there is every facility, at moderate cost, to stop the channel altogether below the eiitranco, by which the current would be almost Jestroyed, and a convenient and capacious basin created at the mouth of the canal. In the present state of navigation and trade generally, such improvement is not called for." It will be show;! that the improvements, necessary for navigation, could have been obtained at a much less cost than has resulted fro. the construction of these dams, consequently, this excess is directly chargouble to the water-power obtained. In October, 1*^49, Mr. Alfred l^arrett, Engineer, made examinations of these ijhoals, making soundings and borings. On the iJOth ho reported as follows: — " I bog leave to report, for the information of the Department of Public Works, that I have concluded the soundings and the examinaiiou of the shoals in the channel ut the head of the Beauharnois Canal. "After completing the soundings, several borings were made, o^iocially on the shoals at Jllack Pier and Red Lighthouse (the more diflioult ones), all of which gave a soft blue clay mixed with stones, which will dredge well when the large stones are removed from the surface. " I am satisfied that the aredge will operate well (hcie, and that a channel may bo speedily accomplished, and aa early as required next season, if the work is promptly and thoroughly prosecuted." On the 3lsl, he makes a supplementary report upon raising the water by damp, in which he estimates the cost of the dams, including land damages, at §36,250. lie Btatos ; — "There are several objects to bo considered in connection with this, and the question is, whether they are of sufficient weight to induce the expenditui'o neces.-Tiry to efi'ect the damming of the river now or in future." lie then details several advantages to bo derived from the coTistructioa of Jams with reference to increasing the depth of water upon Iho shoals. lie states: — " By the dams also will be gained an increased depth of water over the shoals of the basin, of probably one foot, consequently, a saving of expense in the deepening of the channel ; yet I would not attach too high a value on this, as the saving would not exceed £1,000." In the report of the Commissioners of Public Works for 1819, it is stated with regard to the Peauharnois Canal : — " This canal, as well as that atCornwall, has Ihe requisite depth of water through- out its entire length, except at the entrance, wlioro Mr. Koefer found only eight feet of water, and u the coffer-dam, where he found but seven. For the security of the navigation, it is indispensable to diminish the action of the current, and thir can only be done by the coustruction of dams, the estimated eicponse of which is £6, .'JO. 'J'lio dams will have the double advantage of moderating the current, thereby diminishing the dangers of the entrance of the canal, and of laising the water in a ))lace where it happens to bo shallow and where accidents have already happened from the large boulders in the bed of this entrance." The Chief Engineer of Public Works, in the appendix of the same rer)ort, states : — " This canal has a full depth of water throughout, except at the entrance, whei-e I found only eight feet, and on the lower coft'or-dam whore 1 found only sevon feet. It is absolutely necessary to check the current at the head by constructing dams, which, with the dredging, will cost, per Estimate No. 1, £6,400. ^ recommend a contract to be entered into immediately for this purpose; anJ in consiJeration of the benelit to accrue to the Seigniory of Beauharnois from the construction of the dams, the agent of the Seigneurs should bo invited to co-operate and contribute." 13 •rt of tho Com- oso disposed to nvonicnt. Tho lual to that of cnts have over f, at modorato curront would ,t tho mouth of improvement on, could have iction of those 01* obtained, itiona of those lows: — Publics Works, ia tho channel .ociallyon the of which gave irgo stones are a channel may f tho work is vator bv damp, t §36,250. Jio .h this, and the iture necea.-Tiry uotion of dams states: — or the shoals of le deepening of ving would not is stated with water through- only eight feet security of iho id thif ean onlv a £6,. JO. The by dimini.shing plaeo where it iVom the large sport, states : — Liance, where I ov on feet. It is J dams, which, id a contract to ■ the benelit to urns tho agent Subsequent to tho construction of tho dams, tho Engineer of Public Work* reports : — " Tlie'o dams have had tho double ami dosired effect of destroying tho curront, :u)d raiding tho wulor over tho shoals in that portion of the liver between the entrance to tho canal and Lake St. Francis, by which tho entrance to the Bonu- hMrnois Canal is no longer a difficulty. They have also created a splendid bay and an extensive water power, which, situated upon a lino of navigation of such magni- tude, cannot fail to become at some future day the seat of varied and important inanufiictures." Tho eulargoinout of tho River St.' Lawrence, known as Lake St. Francis, is caused by the contraction of tho river at its foot, hy numerous Effect and cost of the islands aud by the natural dam, or ledges of rock, which generally constiTictioa 01 dams- ,. j. i T i- -j ^i i-n ^ n, j- • • u iiP e form the head ot rapids, these still further diminish the area of discharge. Tho effect of thus obstructing the discharge, closing an important channoi, and interfering with the regimen of a river of the characteristics of the St. Lawrence, were serious. Tho water was raised iu tho lake, the shores being low- lying, many claims were made for damages lu property, both by flooding and intor- foi'ciico with drainage. iSpeaking in round numbers, some $300,000 have been expended in connection with land damages, §50,000 in works in reclaiming and pro- tecting from being flooded low-lying lands. The dams themselves cost $34,000— n lota! exponditure of some $380,000 in the creation of this water-power. Mr. Barrett stated tho cott of obtaining the necessary depths through tho shoals 1)7 dredging would be less than tho cost of dams. The Engineer who constructod ilicra could not have considered there would have been as large an osponditure aa has lioon incurred. The actual cost of the dams themselves could be all that is really chargeable to navigation, or there would be s^y, $350,000 as the cost of this water- power, exclusive of tho hydraulic canals, head-gates, etc., at each end of the dam, which would be necessary to bring tho full power into operation. This dam would give, (-ay 7,000 horse-power, at a cost of $50 per horsepower, or nt 10 per cent, interest, including repairs and maint' nance, would be $5.00 per horse-power per year, as tho cost of an horse-power before the water leaves the lake. Tho water power became a subject of consideration to tho Department. In T>,»„„i.,. «/^fi,«n„™»- Dt^^'oniber, 1850, a list was advertised defining the hydraulic The valub 0' tne power . ., ' i ^ i , i ^i ^^ t .^"^ i detailed in public doc- privileges proposed to be leased upon the St. Lawrence Canals, in ''"""'^" which occurs tho following notice with r^ficard to the water power created by tho dam : — " Bkadharnois Canal." "5. A most oxtenaive water power has been created by tho construction of a dam aci'Oss a branch of the Elver St. Law ace, running between Boauharnois Island and the main south shore, situate opposite the guard lock at the upper entrance of this canal. The head and fall is fifteen feet — the supply is drawn direct from Lake St. Francis. "The power created is equal to that of 5,000 horses and may bo used summor ar d winter without interruption, being unconnected with tho canal. "Tho water is jiuro and well suited for tho manufacture of paper, or other manufactures requiring abundance of pure water, The distance from Montreal is 40 miles ; tho situation is lieallhy, and tho country around is fertile and well settled, it is upon a line of navigation unrivalled for cheap and speody communica- tion with eastern and western markets, and cannot fail, at some future day, to boi'orae remarkable for the extent of its manufactures. Several lots have been laid oil' for present accommodation, along with which water power will bo let to any extent that may be desired." There is the following extract from the Eoport of tlm Commiasionors of Public Works for 1851:— "In iho previous reports of this Department, reference has been made to the advantages to be derived by this part of the Province from the almost unUmito4 Y4 water-powor created by tbeso dams. Ono of Iho privileges has pinco been leased, upon v/hich a f Piper mill, on a very oxten-sivo scale, ia about to bo established, and u largo amount of capital employed. Two oth;' ■ )>riviIogos have also been applied for, and the Commisnioners are encouraged to hoji tbsit ibo immense advantages of thin position will soon bo appreciated, and fully realiiied. It will be necospary, in con- uoction with these privileges, to excavate a cynal or mill-r.ico, which will bo ooramon to all the hydfuulic lots, and to construct a permanent pet of head-gates to secure tlio dam from accident, as well as to place the conirol of the water entirely in ihe hundu of tho Commihtfiiniors. The cost of these wo; Icm is ci-timated at £l,5">0." Tho largo annual expenditure upon thi < power is seen from extracts f^otn Departmental Keports e:^ ten. ling over a series of years. /Enufil expend- Commissioner of Public V/oihs Eeport foi' 1855: — wRinteiFance of "The works of the dyke i.e.ir tho head of this canal, tho con- the water-powor. gtruction of which was considered necessary to prevert tho water of Lake St. Francis from flowing over a large tri ct of low land in that locality, and to cover tho cost of which an appropriation wn i made, are advancing satisfactorily. The result of this dyko or embaidurpose." Eeport of the Superintending p]ngineer for yefa- ending 31:-t December, 1S(U : — "Tno co-t of rert'iirs on this canal has buon nuich larger than was anticipated, caused in part by tht large increase in tho trade aud hy tho freshets of last winter and almost constant rains during a largo poi-tion of tho summer, which had tho tendency to soften the bank, causing elides in tho outer slopes aud injury to the slope walls, and clogging up the ditches. That portion of tho dykes on Grand iolo i*nd through Hun! : — "Tho dykes on Grand Isle Avero mnintaiiic'l in good order. Some portions of tho dyke through Hungry Buy were raised, and the inside lined withKlono to protect it from tlie action of hi,i;h water. Sinkholes continued to forixi iu the dain^i, which required continual ntloiuion. "Tho u.-^ual rcpiiirs to slope w.'ilh^, h.ink , dvkoa, dams, dilchos and culvorf". iTia->t ho made durin^:;? tho ju'cscnt siiinuKn*, :ihd :;b:>ut -.'jO lineal yards of the dyl.e thiouijh Hungry Bay rained, and the inner ov l::iy side protected with stone." Keport by the Superintoiidliig En^iMcer, for ISTO : — " The dykes and dama cotincc'od with tho up])or entrance of tins canal and llirough Hungry Bay, which weio f-eriously damaged and washed by high water during the early part of tho scas^ni, were r<'naircd and protected with stone." liC) ort of the Eiii'inoer in charge, for 187ii : — " At the upper entrance 420 lineal yards of slope wall wore rebuilt. Tho lower dam atCJiatid Isle and the dam at Cat l>huid were repaiiel, and sevoral bad leaks slojpod in each. " 'J'he dyke at Il'ingry Eay was f tce I with stone for a length of "iGO'ynrds on tho north side, and 'ZO yvviin on tho pouih side. Three miles of it, ut^ed ixs a )oud, were raiscil witli stone and gravel, and otherwise repaired." JJepcrl of the Kngificcr in charge, for 187o : — " Tho )UY;tcction pier and wharf at the upper ent)ar,ce wi^s repaired. The dams and the dyke at Jlungiy Bay were damaged by high water in Ma}' and June. Tho dame have been repaired, but the dyke at Hungry Bay still requires tobe rai.sod and protected at seveial jtoints." The fore^^joing demon.strates that 85.00 per horse-power, per annum, a-< arrived at previously, is a moderate estimate of the annual cost of this power. If the work had been ur.dertaken by a company for that purpose, adding to the origin;! cost, that chargeable to each horse-power, in conducting the water from tho 1 iko to tho head riues of the mills, it v.'ould give ])0\ver at a cost which would be a profitable investment. Ah the nnumer iu which the power has been developed afl'ords much less power tlian the amount talwon, 7,000 horse-power, each horse-power used, or leased, rejuc (-nts a greater ctit to the country than tho amount above taken. West Side cf Dam, Applications having been made for ]:.ower, upon tho west aide of (ho dam, a supply weir ai:d raceway M-^eie cons'tructtd a?id seven hydraulic lots laid olr. 1 amunab.io to determine the e.Npcnditure u[i(>n this side; the area of supply was, presumably, sufficient to furnish tho | o\^er intended for each lot— six runs ot stones, or 420 hor>e jviwer for the seven k'ln. T/'(>* Nos. I and 2 were granted to F. X.Poitian, in 1854 ; his lights were a■^^■ignod t(^ V. I'oulin, to whom Ji lease was granted for the lots, and power equal to twelve run of Htones, in T>eccmbor, IStJl, l ho lease dating from October, 1804. These lots aie now in the hands of other parties. In 18G.(5, ifessrs. Anderson & W;ittit\ ai'd Mr. Parhim, applied {r-r lots, tho Engineer of (lieCaiud reporting tavort'bly. In ISo's, Willinm Millerjippl'e I for lots Nos. ii, 4, 5, (I and 7, upoii vh ch the J^ngineer repoi-ted favoraiily. Jn l&7i, MessrB. Anderson & Wattle, tho occupuiits of lot No. 2, upon which was erected a woollen mill, again a])plied fi>r a lease of lot No, 3, under tho same conditions as lots Nos. 1 and 2 were leased, and tho rent olfered the t.ime. This application was rcjiorted upon favorably, by Mr. Sippell, Engineer ot the (^anal, who states that these gentlemen have done much towards b'il lin.r up tlie villag<\ and deserve every encour'jgoment. On the 7lh September, 1S7'J, an Order in ('ouncil was passed, granting them tho lea>eotlot No. 8. In August, 1S72, T. E. Miller niado an application for tho unoccupied lots at this place. TLoro sconi, at ibo Bumo time, to have beou other ,1,' l>:ir VG parties desirous of obtaining those privileges, as bo writes sovoral letters with reference to the Tnuchinations of other partio.s, and to prevent a clear impo.tition fioMi being practised upon the Department. Oa the 20lh Seplenihor, 1S72, W. Hobbs transmits a meraori.il fiom certain parties who intended to foi-m themselves into a compan}', known as Inoepttn-i of the the Monti'cal Cotton Company, for the manufacture of cotton fabrics, Comp^ ./. ° °" in Lower Canada. He informs the Department that the whole area of the live lots would bti re, considered tbo Government had the right to lease llio water, ia shown by the ibllov/ing quotation from a letter to tho Department from A. Cross, vice-president of tho Company: — '' Tho Government hjive a docideil interest in the preservation of their roadway of 40 feet in wiulh. Jjjsides having their access to control and regulate the water hupply and works, as osj)re8sod in tiio leases; by its being kept open tho cxpoeted facility is allorded to those who wotild avail themselves offurther watcr-jjowor on tho hydraulic lots to the cast of tho Cotton Cv)nipaiiy's mills, and would increase tho revenue of tho Government therefrom, which is regulated by tho quantity of watur uHod, while, without this facility, tho water inq\ie3tion would bo less likely to become available." In contradistinction to tho value of this rnad as set by tho vice-president of tho Cot'on Company, in 1S70, there is the Ibliov/ing application of tho Company tiirough its Fccrctary, made in Decombor, 18S0: — " A roadway forty feet in widih lias be;Mi reserved by the Govornment, iiinning aoro-ss tho eniiro length of the haid lots, and whereas tho uso of the feaid roadway will not bo required by tiio Govornment in the future, and a^ euoh reserve has bcconio a nuisance to this Company by reason of upublio thoroughfate being made thereof to the j)0ssible danger and damage to tlie mill Ijuildings, tho property of this Company, the (.iirec'.ors heruby request that tho fsaid light of way may bo withdrawn and that permission bo given by tho Government to this Company, to inclose and fence in tho said, hydraulic lots bofbro referred to, (including tho said roadway), in any manner and at any time they shall consider necessary or desirable so to do." If the Government permit this Company to subdoaso water, above what will bo required for their cotton factory, it is evident that they should not be allowed to have this power at tho same rate, 50 cents per horse-power, which thoy will pay lor over 800 horse-power used in the manufacture of cotton. The clauses of tho lease give them surplus v.-ator not required to raaintain Lake St. Francis at navigation height, and tho quantity that can pass throiigli a raceway 100 feet wide and 10 feet deep. In order to draw down Lake St. Francis to its level, previous to the cinstruction of tho dams, tho quantity of water discharged should bo equal to that which passed through the channel before it was closed, which might or might not bo tho case, tho character of iho discharge of tho lake at this place' having been changed. This quantity is indefinite, the section of channel and velocity stated in reports would give some 20,000 ell'cctive horse-power from t':o amount of water passing through it. Tho moan velocity which will bo allowed in tho raco-way is not stated, by a properly constructed raceway of these dimonsroiis they might draw water suilicient to give 6,000 effeclivo horse-power, all of which, not required for their own mill might be sub leased, tho Government receiving nily 50 cents per horse-povver for what has cost tho country §5 ])or horsepower at tho dam. Tho difference between 50 cents, with the interest of tho ca])ilal, reiuired to bring tho water to the head-raco of the mills, added, and tho amount they would recoivo from their sub lessees, being profit to the Compan}', The expense to which Iho Company have gone in re constructing tho weir and excavating a channel into tho lake. L am not aware of. It has been stated that tho work was done very cheaply. They consti'ucted a cotfor-dam and excavated a quantity of rock which was used in tho construclion of tho tnill; this is said to have been as cheap a method of obtaining material for building as that of quarrying and hauling tho stone. AVo will say that tho Company extended their head-race eastwards a sufficient distance to utilize 0,'(00 horsepower, and that tho cost, including tho amount already expended, to bo §1)0,000, or $15.00 per horse-power, which, at It) per cent, per annum, would bo ^l.oO ])cr horse-power. If tho Company, when tho addition to the mill is completed, utilize all tho power their wheels will give them, including tho power other lossoes on this side arc using, it will amount to nearly 1,750 It ^\i\ IB liovso-powor. In this case they might aubloaso 1,259 hoi'sc-powcr, which woulJ cost them only 82.00 poi* horao-powoi". This is the mo->t vuluablo power aloni; (ho wliolo lino of canals. It in not suljcct 1'> !iavi/4:ution, the ■waloi- in not tliawn olV ovciy year iov rcpairn, tJiore in but liltlo l.iu !< water, and with bliubt impvovoinentu to tho channel into which tlie tail water is discharged, there could bo no finer power found in any locality. There iy a never iailing Bupjily of water, constant head hummer and winter, requiring no auxiliaiy engines as at other milln upon the canal.s. Whon tho Canada Atlantic liailway is extended aorot^s the river, this power .Mhould bo worth 81200 per boii^o power perunnum. If thoco8t of I'le powerto tho country, at the dnni, ^5.00 ])or hurno-powi'r. was paid by the Coniojuiy, adding tho 81. l"o «i.xpeiided by tho Company, they might in (ho near future make u profit of So. 50 ]((3r liotso]»<)wor per annum byHtib le:ising; each horsio-powor, by t!io pre.seni, Ica^^o, would lopro^^ent 82.00 per unnu-n, which wauld give a pi out of 810.00 por hor.'^o-jxjwer pci- annum. Tho application for thi-^ gr;int WiiH ni)iver. If liio Govornraent re([uired then, to pay the samo rates for the oxcebs of power used above that leased, (hey would bo pa^nng higher for a less valuable power. Those factft are stated and approximate figures taken for oxemplilication of what may occur in tho future. Several clauses in the lease may protect the Government, as : — " Tho said water to be used for cotton mi;ls, or muchinery approved." "That tho water so leased by these j)ri.!.«enis, shall not include other water than that passing on tho westerly side of the above mentioned dam." n i ivatcr than "That tho quantity and extent of tho water to bo used at any time ehall bo subject to tho approval of tho Minister of Pablic WorkH." "That tho granting of this water privilege bhall not be construed as depriving Ihe Govnrnrnent of tho right to grant leases to other parties, of surplus water, other than hijrehy leased, although obtained from Loko St. Francis, in this locality." Thofo clauses are of little value, as tho Company have obtained possession of nearly all tho Government land on the west side. They have bought all tho nvailublo mill sites below tho Government lots, and upon tho east side of the dam, have purchased property which blocks tho extension of t!io raceway upon that side, and by socurinL^ the situations favorable for utilizing this power, they have, virtually, a monopoly of tho power, not alone on tho west side, but of tho whole dam. Tho last clause has been to a certain dcgrco abrogated by McDonald being required to lease power from tho Company. East Side of Dam. To develop Ihe power upon this side, tho Department, in August, 1853, placed under contract, for construction, a weir and raceway to supply the water to tho live mill lots which had been laid off". The power, (IGi) horse power), leased on this raceway, is now used in tho manufacluro of papcv, under tho firm of A. Biiutin & Co., fur which thoy pay 8Ti)2.0O per annum, or, nearly $5.00 per horsopower,but they aro UKing, in excossof tho powers leased, an amount which give- them their power at less than 81.50 per horsc-povver. This weir and raceway cost $11,254, which, at 10 per cent,, -.epresents $1,426 pi>r aiiinim, for whicli is received $7!J'2. Tbis expenditure was purely (or tho benefit utthe lesioe, anil if we add tho cost, assum«id, of the water at tho dam, §5 per horso- ]iower, thoy would require to pay ^l.hO per horRopower lor what they now use, or 04,825 per annum, to cover the cost ol tlio power. Tho Kiiii(;oways iti ihe weir are of iiis-u^clont area to admit the quantity of Vvniter dijchargod by t!iO wheeis withouL drawing down tho level of the head-r'.ico, to an exterit, Vv-liich reduc-es tho head and power. Thei'- wheels aro set/ too high, cuiising a greater cons^umption of water th;in necessary, they wieh tho Government to provide ihom with an tidditioniil mo.ins of fuipply. in tlieso ren-iJiikH 1 have takeii 7,<-'0i) loiso-power as the power which could ca;3ily be utilised at this dam ; tho j»o\ver, tho wheels which aro, or Present cost of shortly will be, in use, all' rd-J, would give §15 00 per annum as tho power at tbe dam. i , V.. . c u i \ \ i- -i. i t i cost to tho country ot each hor.se-powtr used, botoro it leaves Lako St. Francis : on tho oast side of dam to this amount must be added 82.50 per horse- power, expended ujion tho race to tho pnper mill, or §17.50 ]'er horse-p- V\'er per annum for tlio water supplied to A. Bunliu & Co., for which 01.50 per hoiso-powor is received as rent. ' Tho present rent on lots Xos. 1 and 2, on the west side, is $2.00 per horse-power for amount leased,— $1.00 for quantity u^^.•d. Lots Nos. 3, 4, 5, 6 and 7, $1.00 perhorso- j)Ower up to 800 horse-power, and 50 cents for each subsequent horse-power. East fide, lots Nos. 1, 2, 3, 4 and 5, S5.(,0 per horto-power for water leased, and S1.50 per horse-power used. This power is espccialiy adopted to the manufacLuro of cotton, or other manu- factories, which employ a large number of operatives, tho power being steady and constant, not liable to stoppage, which is a serious los,'^ where a largo number of people are thrown out of employment, and perhaps tkilled labor dispersed, to tho detriment of tho employers of the labor. Whatever policy may bo adopted with reference to this power, it would bo well that tho control of it should not bo permitted to drill into the hands of middleraon, and that any power leased or brought into elT:>ctivo uso should return a revenue equal to the large expenditure made in creating it. Appended, is a table from which tho class of water wheels in uso, character and amount of machinery in operation, number of hands employed and other information, may bo obtained. ■jf 80 fl i i BEAUilARXOIS Tablo of Wuior Wheels, Approximate Discharge of Water and Number of Ilorte-powcrs \arao ot Lessee. Xarac nf Occupant. Situntinn of JFill. Date of Lense. Term of Lease. A. Buiitiu A. IJuntin & Co. do do Stephen May, do do do do do E(ts( side of Dam . LotsXos. 1, 2 and 3. Juno 23, 1867,21 years, from Jan. 1, 1856 LotXo. 4 do 25,1867 do Jan. 1, 1867 Lot No. 5 May 16, I8j6 do July 1,1855 P. Poulin. lAnder.'on k Sou and Audcison k Wattle do do do do Montreal Cotton Co., Montroiil Co((on Co.. I West lidt of Dam. ! | LotsNos. 1 and 2. Dec. 21,1801 21 years, from Oct. 1,1854 do do d(. do I do James McDonald. do Joseph Mdochc .. do do Jamc.? McDonald., do Joseph Melochc... do Lots Nog. 3,1,5,6,73 Mar. <5i 1874 21 years, from Jan. 1, 1874 Between Lot No. ] July 6, 1881 and Datu . 21 yearB,from July 1,1881 Lock No. 7, Canal June 3,18f)S 21year8,i'rom July 1.18C9 proper. rjARNOIS [orte-powcrs rnraOct. 1,1854 roiB Jan. 1, 1874 rom July 1,1881 rom.Tulyl,18CD II ^1 I II Irf IT t 1 ''i; I ■■ — r- " • fc <..*■■ ' ' CANAL. used and Machinery in the Millei of Uydranlic Lcsaeoa, Ynlloytiold, and Lock No. T. Paper Mill... do do ... do ... do ... Yearly Rental. Character and amount of Ma- chinery in Mill. c a M m a B is. Description of Wiiter- wheeia in Use. ITead, Water Din- charged, Power Used and Leased. $ cts. 354 00 20 engines. 318 00 11 beaters, 8 waahcrs. 120 00 I Jordan , Saw Mill 12 do Flour Mill ... do ... Woollen Mill Cotton Mill . i • 240 00 1 circular saw, 1 planing mill and gtncral wood- working ma chinery. 5 runs and ma- chinery. Mako Name. 200 j 11 1 y k e Ma- Hercules chine Co. Lefttl 3. i|g.2 !S5 M 65 M c D o n g a 1 1 Montreal. , do .. do .. Jonval. do ...iTvler I • I 3 sets manufac-] 60 turing cards, 1,000 spindles. LefTel ... do ... do ... do ... do ... Flour Mill ... do ... Flour Mill .., do .., Total tlOO 00 05,000 spindles, 1,300 Tlolj-okc Ma- Ulsd'^n. . 3 I 1,(J00 lounid. I chiue Co. |. Hercules 20 00 4 runs and ma- ehiuery. 120 00!4 runs and ma- chinery. 1,572 00 Wilson A Co. I'icton. 2 'McDougall I Montreal. 1,G33 Little Giant. Tyler ... do ... do ... 48 48 40 56 60 to ^ . as -a xi a .2 '■■' •3 ^ o C IS t3 10-0 lO-O 10-0 10-0 10-0 eS 3 *' u 'A 48 12-0 40 26 536 56 84 54 24 20 54 42 12-0 12-0 12-0 12-0 13-0 243 137 63 155 85 42 35 76 20 84 512 580 100 267 13-0! 740 10-0 10-0 9-0 90 73 7 43 80 1,383 67 90 120 40 40 2,387 * No of runs indefinite. \ Amount paid at present, X I'owcr to be used. I I V^. O^. \t: IMAGE EVALUATION TEST TARGET (MT-3) y & V] <^ /^ /. c*: Lr^ c^^ .p /J. 1.0 Iria ilM I.I 1.25 M 2.2 2.0 1.4 1= 1.6 ^^ # \ \ %^ % ^^ ^^ w ^J '!Pli(< W 82 CORNWALL CANAL From tho head of tho IjOcauharnois Canal to tlio fo >t of tho Cornwall Canal the diitanoo is 32.^ miles. In tho ajonorai lioport upon Piibh.'' Work:^, tho distance from Montreal by water communication is Ktaicil to bo 67;| miles. Thodistnnco by railway coramunication, Grand Trunk, 67 miles. Tho Canal is 11 Smiles long'; tho total fallia 48 foot, which is known on tho river as tho LongSaiilt Eapids. Tho supply ot water at the head, both for navigation and mill pnrpo.sos, is discharged through (i elniceways, 4ft. X 3ft., in tho bicaist wall of tho supply weir, or less tho sluice gates, a total area of 60 eq. fee'. Theio is an ad.lilional area which varies according to tho height of tho river, flowing ovor tho vreir, tho crest of which is Ti't. 2in. above tho m'tro till, guard lock, and 34 foot in breadth. It is also found ncee-^sary in certain btages of thtj water, to uso tho valves in tho gale^, an area of 32 :q. foot. At or.ch lock above tho Cornwall Level there aro regulating weirs of sufficient area of di.-: charge to supply tho largo quantity of water usod by tho rnilU upon that level. The sectional area of the water prism is greater than upon tho other un-enlarged Canals. Tho areas given aro not tho poctions tho canals have assumed, but as they were ori.uiuiilly constructed. "\Yi!iia;nsburgh Cana is— sectional arcp, 700 sq. feet ; Boauharr.ijis Cuial— 1,000 sq. foot; Cornwall Canal — 1,250 sq. feet. At anj' deter- mined velo'iilj', this canal will pa«3 agreatervolriio of water with tho least detriment to navifration. A power of sumo 4,0;j0 U. P might bo obtained, if the area of the supply at the head was adequate to di>»eha!ge tho amount ■d' water required. Tho curx'ent, caused by water drawn necessary to give this power, would tu t be prejudicial to vessels. The water-power upon this canal is created by a fall of 4S feet, overcome by tho various locks. At these locks tho head, or fall, is 8 feet each ; at the lower end of tho canal, three locks being in close proximity, tiio tail-ruces of tho mills discharge into tho river, between which and tlio Cornwall Dasin t' e .average head and full varies in tho summer season, from 2111. Oin. to 23ft. C'in., and in the winter seaeon Ix'om 12ft. to20ft. Gin. Tho u.sual ox])endituro, upon account of water-])owcrs, has been m.ide upon this canal, tho rents received being in no pi-oportlon to tho interest upon tho onthiy. Tho following extract fiom a document issued by tho Department of Public Works, in 1850, refers to this expenditure: " Other privileges for milling and manufacturing purposes will bo at tho dispofial of the Govornmont at each of tho locks ou tho catial, alter weirs, around these locks, have been tuill." One of the first leases of power was m.-'tdo with tho lion. P. Yankoughnct, in 1847, who leased 12 run of [>\ones to be used upon bis own property, Stephen lease. known nn Lot No. 7, in tho Township of Cornwall. Tho terms wore ?80 for tho first run, and §40 for each subsequent run, that is $4.33 per horso power per annum. On the 1st Juno, 1''.57, the amount of power was extended to 20 runs of sioncs, at a rental of ^53.00 porhorsc-powor per annum; tho 21 years term dates from 1857. An extension of four years, from that dale, was given for the erection of tho nc'.'OsHary machinery to utilize tho power. On tho 13tli July, 1857, the property, together with tho water-powor, wore transferred to Wm. Mallico. 11^ states that ho paid $3,000 for tho l.ind, and SI 0,000 for tlic water-poivor, in cash. In September, 1858, a contract was made between the Department and the Lessee, to construct tho supply weir, head-gates, &c., for supply- ing the water leased. This weir, purely for the bouetit of tho lease, costsomothingovor 83 §(5,000, or, at 10 per cent., would represent a rental of $000 per annum, to cover this jortion of the expenditure. On the lOth March, 1861, an indenture waa made between W. Mattico and William Mack, whereby a mill-nito ar.d 30 horse-power was sub-leased to the latter, at a rental of $5.00 per horse-power. On the 12th March, 18G6, a further agreement wna drawn up eub- leasing 10 horse-power additional, in all 40 horse-power, the rent to be $4.75 per horse-power. On iho 24th November, 18G4, an indenture was made bet>vcen W. Mattico and Lawrence Ballard, for ;. site for a pottery and 10 horse-power at a rental of 915.00 ])or horse-power. The orij,anal lease of the Hon. P. Vankoughnet contained a clause that, until tho expiration of the period when tho full power should bo utilized, rent should bo paid for the power as it was brought into n >o. Mr. Mattico was paying a rental of $135.00 on the 50 horse-power ho had sub-letisod. The date having transpircd,wilhin which he was required to bring the 200 horso-power into effective operation, ho had acttially forteited hi.'s rights to 150 horsepower allhough no formal action had been taken. The Solicitor G'enural reported that tho assignor of tho lessee having failed to occupy a portion of the water-power within tho granted time, upon duo notice being given, an end would bo put to tho right of tho tenant, to draw more water than ho had been con- huming up to the date of notice. Mr. George Stephen made application for water-power, for tho purpose of erect- ing a woollen factory, re. quiring IGO horsepower. lie was informed by tho Commis- sioner of Public Works, that he had decided to grant him the whole of tho unapprom'i- ated water-power upon the Cornwall Canal, to bo used upon tho Government land . Tlio Chief Engineer to tl.o Department, Ujion I'ormor applications for power, having pre- viously reported strongly against leii.sing any more water upon this level, as it would cause a permanent injury to navigation, Mr. Baillairgo, at the date of these negotia- tions, also I'eporlod that "there is no tnoro power than leased upon this level;" it was proposeii to lease the ])ower Mr. Mattico liad forfeited,which ho protests against, as ho had paid a lar.'jro sum tor tho power u'ld also expended $5,000 upon racowaj's, &c., ho otters tho unoccupied power and two acres of land as a bonus to Mr. Slophen or any other rosponsiblo party, for tho sum expended, S5,0U0. He states he had made every endeavor by advertising and otherwise, to bring tho whole power into use, but, owing to dull trade, high rate of intorosl:, and tho war in tho United States, ho had been unable to accomplish his object. An agreement was entered into, subsequently a formal indenture was drawn up on tho 13th Juno, 186b", between William Mattico and George Stephen, in which tho formor conveys to tho latter two lots, or about eight acres of land and all tho water privilege he held from tho Government, for $6,500. Indentures were drawn up, conveying for five shillings each and other considerations, tho sub-leasos of Mack and Ballard. In August, 1866, an order was passed, granting Mr. Stephen 200 horse-power for $1.90 per annum for tho unexpired term of the lease. Tho lease was drawn up ami tho maximum rent to bo paid was sot at $135.00 per annum — tho amount at present paid. Tho Chief Engineer of Public Works on tho 7th December previous, reported : — " Mr. Stephen, or any other pjM'ty, leasing tho water-power at Cornwall, tho creating of which has already cost the' Government a very large sum (will no doubt do so with a view to their own special benefit), and should therefore, in my o'^-nion, bo bound to puy tho full amount of rent conditioned in the lease to Mr. Vankoughnot, namely, $600 per annum, which is extremely low for tho privilege." By this lease, the country lost $i;;4.00 per annum during the time $1.00 per annum was charged, ns Mr. Mattico paid $135.00 for tho 50 horse-power leased, for which ho and Mr. Stephen subsequently, I suppose, received $340; or, taking tho price established at the original grant,.?;?. 00 per horso power, would be $150.00 deducted from $3i0.00, leaves $190 00 rent for mill sito and profit upon wator-power, if tho above rate liad been paid. Mr. Stephen received, until tho rent wa,^ increased to its maximum, 7 ilMftnP 84 8135.00, the waterfor the woollen mill for nothing, and the bonur of $150.00 per annum which should have been received for water subleased by Mr. Mattico. Since the erection of a woollen mill, a cotton mill lias been b.iilt driven jiartly by water, steam being used ior the balance of the power required. This privilege is using, according to the discharge of the wheels, CT5 horse-power, or 475 horfie power, for which no rent is received, those powers having been trans- ferred to manufacturing companies, presumably, at a profit to the lessee, made at iho expense of the country. For the interest upon the cost of the siij)ply weir, 8(J00 per annum, to which is to be added the largo expenditure necessary lo bi'ing the water to the head of this race-way, there is little return. The Stormont Cotton Company have lately increased the size of their mill, and will have in operation over double the number of spindles than before the addition. They have gone to a largo expense in putting in turbines maiiufactured in the United Slates, of a high reputation By draught tubes they have taken advantage of the full head during nav'gation, thus economizing the w-iter, an example to other lessees upon the canals whicli the Department might insi.-t should be followed. From the size of these wheels and the enormous power they would give under Bummer head, or even the winter head, it might be supposed this mill would consume a largo amount of water. This number of wheels has been put in, to enable the machineiy to be driven during back-water, or when there would be, say, a 10 feet head, the four wheel? would furnish power, if there is sulScient water in the canal, to drive the machinery. The amount of power, required for the machinery in the mill. Oault leaae. for efficiency, the season of average number of yarn. and the depends upon the cla^is of cotton manufactured, debcription of machinery. When it is in full operation this can be determined; I should judge it to ha 350 to (iOO horse-power,— th(^y have leased DO horse-power. The estate of Andrew Hodge, or llodge & Bnjihers inform the Department that they jue atjout changing tlieir mill. ])utiing in new machinery and a Hodge lease. belter class of water wheels. The'.v present wheels discharge water sufficient for about 230 horse powei ; they have leased 80 horse-power. The only wheels upon this level, that cafinot be considered economical in the use of water, are those in the mills of LLodgc t*c Bi-othera and of William Mack, a pub-lessee of Gi^irge Stephen. By the terms of his lease and that of Lawrence Ballard, tbuy have power computed at (')i> per cent, for useful effect, and at a head of 8 feet and 10 feet respectively. The CernwiiU Manufacturing Company have also a head of only 13 feet ujion their wheel. In these cases, the Lessee from the Government should be required to lower the wi.eels and tail-races, in order to economise the water, as the same power could be o' tain 'd by this means with less consumption of water. Some action to economize the water will ho( n bo necessary. In a ])revious report, the evidence is given of a number of captiilns navigating the canal, which f-howH that too much water is being drawn for mill puryjoses. Tiie Stormont Cotton Company, since the date of that report, have put in better wheels and are taking advantage of the full summer head. AUhough having double the number of spindles in operation than they had at the (hlo ot that icport, by the use of a better class ot turbines and greater head, they \\ ill draw little more water during the season of navigation. Besides the fall between the level of the Cornwall leach and the river, there is water-power available at three locks, with a head or fail of 8 feet each. Power atSlooka. D is obvious, there is the same quantity of water to be utilized for power at those locks, as the Government permits to be discharged into tho river by the mills upon the Cornwall level. The power at Lock No. 18 has been granted to a Cf^mpany for the manufacture of paper, for which an extensive building is being erected. Tho wheels used will give some 400 horse-power or at tho rate rented, some 30 cents ]'er horsepower —this amount of power may not be required at present. In 1872. W. llospt ler applied for power at Lock No. 10, for the manufacture of paper. An Order in (J'^»"<^'il granted him 150 85 I per annum Since tho utcr, steam lorso-power, been trans- mad o at I ho r, SlJOO per tho water L- mill, and than before putting ill reputation head during »ther lessees give under mill would In, to enable my, a 10 feet the canal, to ' in the mill, rn, and tho itermincd ; I •power, irtment that hinery and a •harge water horye-power. economical illiam Mack, id that of ffect, and at g Company jossee from a order to with less a previous iiual, which inont Cotton Is and arc double tho I, by tho U8e rnlcr during vcr, there m b foot each. utilizoiJ for c discharged manufacture ■ed will give -thie amount for power at ted him 150 Supp!; of water, limited horse-power free of rent while buildings, &o., were being'erectcd, and $3.00 per horse- power afterwards, but for eorao reason no lease was executed. Tho power at Lock No. 20 has been leased, but was recently cancelled, tho lessee holding it for merely speculative purposes. At this lock an expensive supply weir was constructed for hydraulic power. At both locks Nos. 19 and 20, there is valuable water-power ready to bo leased, — 400 horse-power if tho late lease to tho paper company bo taken as a basis, or some 550 horse-power if tho water drawn from tho Cornwall level bo taken, at each lock. Tho power at these locks is of more value than upon the Cornwall level, the head being invariable and not subject to back water. During tho winter the river opposite Cornwall is subject to iee-jams, wiiich dam back tho water iu the rivor, to the extent that for short periods, Ice-jams. there is little fall between tho river and tho Cornwall reach. The least average head for one month was in February, 1880, 6ft. Tin., and for tho three months of that year, January, February and March, tho average head was only 8ft. Sin. The average head, according to the table appended, during twenty-two winter seasons, is say 1(! feet. This power is similar to that furnished botweon Basin No. 2, Lachine Canal, and the River St. Lawrence, Montreal, whero they are subject to back water in a similar manner. Tho average, for twenty-two seasons of navigation, would give a head of 22 foot. The power upon this canal should be worth §10.50 per horse-power per annum. Taking the discharge of the v/hoels there will bo used some 1,800 horse-power, yielding a rent of $765.00 por annum, which if charged at tho rates stated would give 818,900 per annum, with an additional revenue for tho water at tho locks not leased of $8,400, or a total of $27,300. Upon this canal wo have the history of the Lachine Canal repeating itself. Tho mills aro using a very largo quantity of water, in excess of what was originally leased to them by the Government. Tho supply weir at tho head was of sufficient capacity to discharge this quantity. In 1857, the Chief Engineer of Public Works recom- mended that tho supply weir, and race-way, at the head of tho canal should bo enlarged, and ho then deemed it unadvisablo to lease any more power upon any level. In a subsequent licport ho states : — "I may further add that a full and close examination of the upper inlet of tho cnnal, during the past summer, places beyond a doubt the correctness of tho opinion given in tho report (No. 32,082 above alluded to), that is to say, no raoro water-power can, under any circumstances, bo granted on tho level opposite Cornwall, without caus- ing certain and permanent injury to the navigation, to an extent that nothing, in my opinion, could justify." Since the dato of these Eoports, there has boon no additional power loased— except recently, which is not yot in use — nor has there any more been paid for, though the consumption of water, as before stated, is very much greater than at that dato. The supply weir is sufficioni:, at stages of low water, for all tho purposes of navi- gation, oven for tho enlarged canal. When tho head between the river and canal becomes loss than 1 ft. 6 in. there will be great difliculty in maintaining tho navi- gation level of tho upper reach, and eipplying the water now used by tho mills. Any expenditure that may be mude, to increase the area of sui)ply, will, there- fore, bo made purely for the benefit of the mills. If they are restricted to tho amount of power originally leased, 370 hoi'te-power, tho weir is sufficiently largo as at present. Tho supply at tho head was least in 1872, the average level of water in tho river during tho season of navigation was 9 ft. 3 iu. above the mitre sill, guard lock. During the winter season of 1871-72, tho average level was 8 ft. 1 in. For tho four months, May, June, July and August, tho average head was only some five inches, that is, tho river was at n Icvol, that the head was too great to open tho guard gate with safety, to increase tho supply, and not sufficient to discharge tho quantity of water used by tho mills. In Soptombor and following months the water was low enough to open the gates. Daring the four months the supply would bo only suffi- • g6 cient to furniBh otic-fourth tho quantity of water now used. During seven seasons, out of twonty-twoof navigation, tho head was lens ihan Ihatrcqui^iLO todi.-jchargothis quantity. At Iho noxt season of hiw wator tho navi'-jation intcroist will commenco to complain, without IcH.soes aro resti-iulud in tho quantity of water they are using. Upon the lower level this could be easily done, as there is leaf-cd only 370 hovso-power. Tlio aniouni of water, for milling jiurposes, han been increased by a late Order in Council, by which, fur u nominal rent, 40U hor^e•p(lWor has been granted at loi.k No. 18. The b!ip]»Iy n jco-sary '.o fmni.^h the power Icised on the Coiii-.vall level, if tho Government in:-itit njion full head and good wliceli. would Ic sfiiiu) 200 cubic feet per becond, which lessees could be restricted to. By th'S lease of 4UU hoise-power, on an eight feet head, the leased walor, for mill purposes, has been increased to nearly HuO cubic feet per soeond, which cannot be supplied vrithoat a foot head between tlio liver and caiu.l. There was not this head, in tho months of September, October and Novembei', during a number of years. From '.he table appended, it will bo seen, the supply must bo short during winter seasons. The power lea.scd is not guaranteed, it is a variable power at nominal lent; on this ba.-is tho amount of 8U]ij)ly at the head is suflicienl. What power has been obtained has been created at a great ex])oiise, while little return has been made for this expenditure; therefore, the Govorument should not be called upon to expend money to mi.lco the supply more constant. In tho administration of this, canal, when tho he:iu foil below 1 foot 6 inches, tho mills should have a ]iroportion of the water used by th'im shut ofl', and tho supply at ail times in seasons of low water not allowed to intc rfcro with navigtition ; under these conditions there would be a power of much gre.Uer value than is now paid for it. A question of tho same character arises as in the expenditure for tho ssipply of the Lachine Canal. It would seem an injustice that tho people should be taxed to coatribulo to the wealt.h of these manufacturing corjiorutions. There are six sluice-ways for su|tply ; two of ihcto arc more than suflicient for the wants of navigation, the other four aro for tho mills. Now, to what extent will this continue ? Will tho area of supply bo increased, in order, that a ono foot head, u pis inch head, or u three inch head, bo the limit taken, w discharge the water, used by the mills, into the canal ? The lets the head taken, as a standard, tho greater the cost of suiiply, and tho greater the value of the power. By the Order in Council the Toronto Paper Company aro granted 400 cubic feet per second more, for mill purposes, than was granted bv foimer leases, which repre- Bont at their rates, a rental of 880 per annum, at 10 per cent, capitalized, gSOO. This sum would bo a small contribution for the construction of a raceway to supply 4*)0 cubic feet per second at low wator. Value of Poweu in tue Manufactuue of Paper. In tho first report, of this series, I alluded in a general manner to tho cost of power in tho manufacture of cotton. As there aro several ])upor milld upon tlie canals, and as this is the latest lease of water for a paper mill, some statements will bo madowith reference to this concession. The Toronto Paper Company aro to manufacLuro fine writing papers. ITolyoko, Mass,, is the chief seat of tho manufacture, of this class of paper, in thoUnitcd States; 150 tons per diem, principally of tho lino grades, ai-o manufactured. Mr. Emerson, a practical hydi'aulician, who has had a long expcrle iCO at Ilolyoko, states with reference to the power at that place : •' Tho haste for largo immediate dividends has ha.'ncsscd tho noblo river to a business insatiate in its demands for more; the paper manufncturer that has all tho power he wants is a phenomenon. Excojit the hebdomadal etoji, mjro for ropairs than prayers, the draught from the pond is uncea.sing. Tho water-power sufHciont to give employment to a thousand hand;), in the manufacture of paper, will be abundant for tho employment of si.'j thousand, in tho manulacturo of cotton goods." ST ii-o of cotton Four paper mills arc now in operation, tho Toronto Paper Company will make the fifth, upon tho Canadian Canaln, llioy will consume a largoquantity of water, and pay little rent. With reforenc^o tolli's lalo r-i-nnt, the mill isnotyot in operation. The ])resont tarifV, for the class of paper tlioy will manufacture, gives a protection against iho lloiyoko manufacturer of 22J per cent., ad valorem, on calendered paper, and U) per cent, on ruled, pufior and envelopes, — the latter will, probably, bo the chief jii'O'iuct of tho mill. This 2,'» per cent, was, presumably, considered suiiiciently high to enconrago the manufacturing of tiiis class of paper, in the Dominion, and enable it to nompoto with that minufucturod at Holyoko and elsewhere. If this bo the case, and tlie turifFonablos this Company to dispose of their paper at a fair profit, a pro- portion of the diHorenco, betweon the price paid for power here, and at Holyoke, becomes a bonus to a paper manufactory, not hitherto considered, or an annual transfor of (he taxes of the community who provided tho water power and maintaJna it, into tho hands of an iridividual or a compan3\ In order to dotctnine tho cost of power, to a paper manufacturer at ITolyoko, I wrote to tho Hj'draulic Eugincor of that Watcr-Povvor Company, Clements llersckiel, Hsq , for information as to tho cost of power, both for newspaper and fine paper mills, hid replies contain tho following : — "None of our mill^'. make the clr.ss of paper to which you refer, ' rows.' Our water rates are, howevc;', irro^jioctivo of articles manufactured. We have two kl;)d3 of power, permanent an! surplus. Permanent is warranted for every day of tho year. Surplus may bo withdrawn in a momoiU's notice. Parties drawing after ciich notice must pay a heavy penalty. Permanent power has varied greatly in value since Ilolyoko was started. It is sold with land usually, hence its precise value can hardly be stated. I should say it was worth, today, a rental of $1,200 per annum, for sixteen hours power; §2,400 per annum fortwonty-four hours power, per mill power. " Surplus rates have been fi.Ked at $5.00 per day, of twenty-four hours, per mill power, for six years, from 1st Januarj^, 1882, when used to an extent not in excess of 50 per cent, of amount of permanent power owned by the party using tho surplus. Beyond such 50 per cent , the rate is doubled. "Most of our mills pay a rental of about $450 per annum, per mill power, twenty-four hours power. This is irrespoctivo of cash paid at time of purchase." The term mill power hr.s boon explained in a previous report; it netts from 60 to 65 horse power. From those facts, a paper mill in Ilolyoke, manufacturing writing paper, paj'S tho Wator-Power Compjiny, ex'jlusivoof the original cost of tho power, which Mr. lierschel states varied, ?iT.50 per horse-power per annum, or, a mill using 400 horse- power wouKl pay anauallv 8o,"00 for what tho Toronto Paper Companj' will pay 8120 per annum. To mulco a fair comparison, the interest upon the capital expended, in tho original purchase of tho ])owor, at Holyoke, should bo added, this $7.50 being the amount paid to the Company for the maintenance of the power without reference to its original value. Por every horso-power of surplus water used, the Ilolyoke manufacturer pays $23.00 per :;nnum, against 30 cents paid by tho Toronto Manufac- turing Company. Or, taUing tho value of power at Ilolyoko, at the present time, which has lately boon deteiminod by t^ale, 400 horse-power in tho manufacture of paper would co.t $16,000, in contraiiistinction to $120 in Canada. To avoid miscon- ception as to the rates — paper manufacturers are charged higher for power, on account of drawing water the whole twenty-four hours. If a tarilF of 25 per cent, is sufficient for a legitimate profit, what must this cheap power bo called ? Tho paper manufacturers on tho other canals, are A. Buntin o isoo-ai . , 1S61-62.. 18G2-63.. 1863-04.. 1864-65.. 1865-66.. 18G6 67.. 1867-08.. 1868-69.. 1860-70. , 1870-71.. 1871-T2.. 1872-73.. 1873-74.. 1874-75.. 1875-76... 1876-77.., 1877-78.,, 1878-79.., 1870-80. „ 1880-81... 1881-82... Ft. In. 33 33 33 33 33 33 33 33 33 33 33 ■63 33 33 Average,, 33 33 33 33 33 33 33 33 33 o.Sn: Ft. In. 21 18 3 15 9 17 3 17 1 18 18 11 19 9 15 7 19 2 17 8 18 2 15 1 16 5 18 10 17 8 19 4 12 6 17 9 13 11 15 2 13 4 17 2 "a = iJM on — , - o 2 0. t- « > o a^ Ft. la. 12 It 9 17 3 15 9 15 11 15 14 1 13 3 17 5 13 10 15 4 14 10 17 11 Season of Navigation Avenige of 244 days fioin IGth April to 16th December. 16 7 14 2 15 4 13 S 20 6 15 3 19 1 17 10 19 8 15 10 b^ V I- > o Ft. In 33 33 33 33 33 33 33 33 33 33 33 33 33 33 33 33 33 33 33 33 33 33 33 ^ r< ^ a; Q u ,Ft. In, 11 1 11 10 11 5 11 2 11 3 10 8 10 10 11 1 i 10 4 11 2 11 6 10 6 9 7 10 7 10 9 10 11 6 10 3 11 10 4 10 2 9 11 10 9 o a — 03 > aj Guard Lock. Winter Sen9nn Avernge of 121 dys. Season of Navig- rition Average of 224 dnya. Ft. In, 21 11 21 2 21 7 21 10 21 9 22 4 22 2 21 11 22 8 21 10 21 6 22 6 23 5 22 5 22 3 23 21 6 22 9 22 22 8 22 10 23 1 22 3 53 J"" Ft, 9 9 9 9 9 9 9 9 9 9 9 9 9 9 o 9 9 9 9 9 9 9 bou, Ft. In. 10 6 10 9 10 6 9 4 10 3 8 9 10 8 9 9 1 11 10 1 8 1 9 2 10 7 8 5 9 11 10 2 9 9 10 1 9 8 8 7 9 11 9 9 "I Ft. In 1 6 1 9 1 6 4 1 3 1 8 1 2 1 1 i , 2 1 7 11 1 2 9 1 I 8 11 9 Ft. 9 9 9 — a bob Ft, In. 10 11 11 10 11 7 9 i 11 1 11 1 10 7 10 6 10 11 9 10 11 11 9 10 5 9 3 10 6 10 8 9 8 11 6 10 1 10 10 10 9 10 1 9 9 10 8 .a •9 a P..4 Ui I 4> > u » . O n ra (6 t& Ft In, 1 11 2 10 2 7 2 I 2 1 1 7 1 6 1 U 10 2 2 9 1 5 3 1 <; 1 8 8 2 6 1 1 1 10 1 9 1 1 9 1 8 90 Cornwall Tablo of Wator-Whcols, Appvoxiraato Discharge of Water and Number of Name of Lesaee. Name of Occupant. Situation of Mill. Dnto of Lease. Term of Lease. George Stephen do Canada Cotton Manu- facturing Co. Lawrence Ballard North of Locks, Nos. 15, 16 and 17. Aug. 9, 1867 21 years, from Jan 1, 1867 do Cornwall Manufac- turing Co. William Mack do do do ilo do do do Aniliewllodge do D. A. Iloily'-' & Bros, do South side of Corn- wall Level. April 19,1879 21 years, from July 1, 1871 do do A. F. Gault Stormont Cotton Manufacturing Co. Toronto Paper Co... . do South side of Corn- wall Level. North of Lock No. 18 Mav 2, 1879, J line 9, 1879 21 voars, from Jan. 1, 1870, Toronto Paper Co.... do July 1, 1871. m., 1 91 nJan 1, 1867 Canal. Horso-powors U«od, and Machinory iti tho Mills of Ilydraulic Loshoos. c o ■a a. •c u 3 Q Cotton Mill. Pottery Woollen Mill Flour Mill ... 20 Yearly Rental. $ cts. 133 00 do do do Woollen Mill Planing Mill Flour Mill ... Cotton Mill. Paper Mill... do ... Charart'-T and amount of Ma- chinory in Mills. a -3 o a a It, Description of Water- wheel!) in Use. .Maker and Class. Xame. s ? 40,Oro spindles/ 1,200 1,000 looms. I 2.10 00 8 sets manufac- turing cards. 5 runs and ma- chinery. iLcffcl... 11 Wilson & Co.. Little Giant. 220 Leffel.. 6 In wooden I Tyler ... scroll. I do 270 00 120 00 765 00 3 sets of cards ... Planing machine G runs and ma- chinery. 23,840 spindles,, 610 looms. 6 engines— 3 beaters. 3 washers— 1 Jordan. 25 550 Wooden buc- ket. Wilson & Co. [n wooden scroll. Wooden buc- ket. do ... Lcffel... Central disch'ge Little Uiant. Tyler ... Central disch'ge ITolyoke Man- Hercules ufacturins: (Jo 150 Stout Mills and XewAm Temple. ericnn Dayton, .... 2,161 Head, Water Dis- charpcd, Power Used a;ul Leaned. 2 60 24 21 74 64 48 35 30 21 35 48 66 a ii Us asff a fa 22 10 <-> be; A-~ 1 3 -I 'J ' 228 o ** . a 19 16 13; 153 169' 425 4^ ftS € 3 . u W c. 8 8 8 8 17 15 15 22 66 8 48 8 30 30 22 14 25 19 135 204 65 675 200 230 650 6041 410 t80 t90 400 1,865 770 • 400 horse-power. f Mill said to be about being changed and better machinery placed in it. JSee Report. n WILLIAMSBURGII CANALS. The Willianifebufg Cunals nro n. scriea of tlirco, Farrnti's pDint, Jla])iclo Plat, and (riilopa (Jiiwalf, thoy londor navif^ublo 27 miles of (ho l{ivcr St. Lawrenco, and havo a ' onibined lon^jlh of soino 12 inilon. Tho rapids wliicli tho^o canals aro cotiytruotod to ovoreomo, bavo not a declivity bufliciont to ytrovent Htoamers of a cortnin clas.s and ])o\vop ascending. Tlio water jiiism of this Hories in Mmallor than tlio other unonl'arged canals. For tlioso and other reason:^ ; there ia miieh less power, in com- j>arisoii with a similar hcaJ, or fall, than upon tho Ueauharnois and Cornwall OanalM. Tho Furran's Point Canal i-* 5 miles from tlio head of the Cornwall Canal and 81 miles flora Montreal, by rail. 1(m length is ibi'ce nuaitersof a milo, with ono lock of t feet rifio of loekaajo. Tho Jtapido I'lat Canal is 10^ miles above Parran's I'olnt, and 02 milori, by rail, from ]\ron(roal. Its lenj^th is Bome 4 miles, wiUi one lift and ono guard lock. Tho riso of lockage is 10 J feet. The Galops Canal is -i^ miles above tho Rapido Plat, and *7| miles in length, with 2 lift locks and 1 guard lock, and a total ri.se of lockago of 15 J feet. Iroquois, and Point Cardinal, where tho mills aro situatod, aro 99 and 104 milo', rcHpcctivel}^, from Montreal by rail. Parran's Point Canal. Tho water-power upon this canal has not tho same importance as those upon the oilior canals, tho head or fall being some four foot, although more power could bo obtained by increasing the area of the supplj' i-aco. ]n 1847, Mr. Mills, engineer on the construction of this series of canals, in ro])ly to a letter of the Secretary of the^Dopartmont, states that three runs of stones could bo leaded upon this canal. In tho list of hj'draulic privileges on tho St. Lawrence canals, proposed to bo leased, dated December, 1850, it is stated : "A lot at the foot of tho canal, containing about half an acre, with water sufficient to propel four runs of stones, constant supply summer and winter. Uead and fail four feet." On the lOlh February, 1848, this lot, at an upset rental of £50, was put up to auction. There were no bids at (ho price. At a second auction, 12th February, 1849, (hero wore no bidders. In 1851, and subsequently, there were a number of offers from responsible parties for this privilege, at a rental of £40 per annum, or $4.00 per horse-power. Owing to claims which wore still in abeyance, made by the owners of tho land taken for the canal, for tho damage to a mill sito, ^this privilege was not leased at that time. Tho arbitrators on land damages made' an award of £G50 for injury to a mill privilege, and £l,.i50 5s. for land, &c. A Mr. Freeland, Government agent or arbitrator, to settle claims upon these canals, reported the award of £050 was excessive, and that it should be appealed against. He states : " I do not know any other ground of appeal than tho extravagant amount of the award, particularly £053 for a supposed mill ]»riviloge, when no attempt has been made, or ono shilling expended, with a view to a mill or any such thing." Tho Attorney-General (West) Hon. W. H. Diaper, was asked for an opinion on the advisability of appealing against the award. Ho reported that application should be made to tho Court of Queen's Bench. It appears, according to his opinion, 98 tbnt the claim or damngos was " rather the opportunity to create a mill sent, than n mill 8oat to bo taken away." Ho Btalos : "It appears to mo, tho application should bo made, in order to doiormino judicially, whether damage ouij;ht to bo awarded to the owner of land bounded by a navigable river, founded on a calculation of what tho land taken from him would be worth if ho had dug a raceway through tho land, and then op])Iied to bin own use a portion of the water of the river; in other words, tho power of drawing oft' a portion of tho river, and applying it to his own usos, which power has not boon cxcrciHed, form an element *)f tho land taken, proper to be estimated by tho arbiiritor-^, par- ticularly if, in order to uso tho water, any erection or other work without llio limit of the party's land is necortsar)'." An application was made to tho Court of Quoou's I]cr,ch to sot a.sido tho award. On the 10th September, 184(3, the law agents inform iho Department that, "The rulu has been discharged, not becauso the award can bo Ku-itainod, but becauso tho Act passed last Session to amond tho law constituting the Board of Works deprived tho Court of (Queen's iJonch of tho power whicdi it previously hud in such cases; tho Court, however, stated that if thoy had tho power they would have set aside tho award on sovcral grounds. The award ot course can never bo actnd upon tliorcfoio, and Mr. Farrau can reap no bencUt from tho same." On tho 19tli July, 1849, the Soiicito:--Gonoral, the Hon. W. II. Blako, icported upon tliis case. IIo wlated that tho repeal of tho Act under whicli the arbitrator's sat, alter tho awni'd had boon made, should not be allowed to atVoct Farran's rights. IIo was of opinion that the portion of tho award respecting which no legal objection exists, £1,250, should be paid with interest from the time of the award, leaving Mr, Farran to make a further application for tho balance, £030 (tho legality of which is doubted by the present arbitrators), if ho should bo so advised." This matter remained unsettled until the I4th May, 1858, when an Order in Coimcil was passed, authorizing tho Department to settle with Mr. Farran, by making over the privilege to him, on condition that ho gives a receipt for all claims he may have under the award or othoi'wise, Mr. Farran accepted the pro])oeitioMS of the Government, a draft deed was drawn up, of which I can discover no record in the Department, or whether it Wits executed does not appear. The value of this grant, according to tho offer made for tho privilege, would equal tho original award of tho arbitrators, which would appear to have been large for only prospective damages, and to which there would seem some doubts of a legal claim. It is evident that, for any surplus water above the four runs of stones used, tho Government could demand rent, and that the occupant has no right to any larger power, if such could bo utilized, than 40 horse-power. Besides the four runs in tho mill, he has a carding mill and shingle machine in operation, for which the Depart- ment could demand rent. It would seem, considering the largo number of applications for this privilege, that if it had been offered at auction, to tho highcfjt bidder, and the claims settled by a money payment, it would have been preferable to the perpetual surrondor of Government land and water, as has boon done in two other instances upon tho canals. Rapide Plat Canal. Upon this canal, at Lock No. 23, tho power is obtained by the fall betwem the river and canal, which varies according lo tho height of tho river, the lift is stated at 11 feet 6 inches. At the lock named, a milt sito was laid off, with six runs of stones attached. It was put up to auction, in February, 1848, at an upset price of £100, and taken at that price by James Ilolden, bri!. no lease seems to have been executed. It was again put up to auction at a lower upset price, I presume, in February, 1849, and sold to Mr. Benjamin Chatl'oy, for £(>! 10s., with whom a lease was executed on 12th February, 185li, dating from 1st July, 1840. Two-thirds of this site were assigned to W. Gibson, on tho 31st August, 1867, — tho other third is now 91 oocupioil by Mr. McKonzio. Tho whole power is now snid to bo under the contr il of Mr. (libson. There Hhould not hnvo l)00ii loasoil any water, for mill pnrposoe, npon tli's canal, as ihovo is no supply woir at tho head. Tho (eod of the canal, InratHHent am of for both n'.tvi''ation and mill i)urno>'es, has to bo supplied thronijh SUpilv lit tho ., , . '^.i , ,. >i ' ' . 1 1 rni • • . headufuanal. tho valv.s in tl\e fi;atos ol the ^uard 1o*Mv. This instance supports the as'Oition, frotpionliy nnule, tliat all this mill waior is supplied by cx]>enditnio for that purpose; lu're we have a canal, certainly, ot inconsiderable loiif^th, hut still. Air thirty years, onoratod with only the valves, in thop\tcs, toturni^h >vatcr lor naviijation and for tho mill leased. This has been done very inetVectually, and to the great inconvenience of navij^ation. When the head botween tho liver juid canal is too f^roat to o])en the pates, or about six inches, tho level of tho canal has iteen run down one foot ami a half, when lockinjT was taking place simultaneously at liock No. '-.{ and tho guard look. Thosujijdy being closed at the head, drawing wati-r for tho mills, together with that required lor lockages, must certainly run down tiio reach. The level of the water in river, or on mitio sill of guard lock, is frequcntl}' v(>ry low duiirg the season of navigation. In Octolter, 1872, the average lovel was 7 feet 9 inches; m October, 1877, the average was 7 feet in inchns; in October, 18S1, 8 t"ot>! 4 inches. In winter, the average for February, 1871, was C feet 7 iaclms. There would be great in^'onvenieiK'o experienced by vessels, on those cr.nah, il the}' were recpiired to uto thota on the downward trip. They djseend by tho rapids ; on tho upward trip, tho return cjiigoos being lighter, and as thoy lo.nd onl}* lo tho depth they can pass through with, that is, according to tho height of water in river, on the dillerent mitre sills of this series of canals. Thero have been survej's made fi>r a supply weir, and an appropriation placed in tho cstimatcB, for that ]Hirpo>e, When constructed it will bo for the Appropriation for benelil ol the mills; if the largo supiilv necessary for them could be Hii Increased ] ., i .i i , .. , . ii » i rt« • supply. drawn through the valves lor tuirty years pjust, they wouKi bo sulUci- cnt for navigation which requires u small (quantity, at least, until tlio canal is enlarged. The hydraulic Lessee coinplainsof the inale(iu'tey of the suppl}', and the frequent stoppages tiiat have to no made upon that account, and states correctly that either the miil privilfgo shoidd not have boon leased, or a supply weir should have been constructed. Tiie sum of 810,000 has been voted for this purpose. B}^ closing tho sup])ly of water to the mills, certaiidy if for tho letiglh of time stated, both navigation an! tho mills have been supjilied, even if inade(iuately, tho means of sujiply is sutUeieiit for the ]>resent scale of navigatioii, and $10,000 would supply all the water required for an enlaiged navigation, which would leave SiiO.OOO chargeable to mills, ov, S.'i.OoO per anvuim; the present rental is 82tii.00 per annum. The Lessee upon thi^^ ])rivilege has leaded 70 cubic feet ])er second, if there is u.sed all tho wiieels can disch;u-ge, it would bo five times the amount. Those facts have to bo taken into consideration, as this expenditure, as well an similar expenditures upon the canalM, will bo ascribed to tho necessities of navigation, these necessities being caused by tho water drawn from tho canals for mill ])urposos. Pi'obabh', with the imiirovomenta necessary for the more consl.ant supply of water n])on tho present canal, GOO horse-power cou!d bo leased, which, at 810.00, would return 8l>,000 per annum. Tho original upset price for power bore, was nearly $7.00 ]M\v horse power, it was subseipiently sold for jfOO per horso-powor; after dO years its value sliould be at lea.st that stated, $10.00 por hor.se-power. Galops Canal. At Lock No. 25, L'oqnois, there is power obtained by thohoad, or fall, between Power on the Lto- the river and the level of canal, some 8 feet, which varies according ^ to the height ol river. At this pLico, a mill site was located with four runs of stones attached. At the flrst ftuctiou, it reQoivoil no bidders nt £75, upset price. At the second auction, in 05 Fobruarj , 1840, it was BoUl to Mr. Willinm Elliott for £35, This property passed into tho handrt of otiior parties. The mill has rooontly boon burnt dowp. a-ul in its rocoiistruction tho Doimrtniont is in a jH).siti()n («> iIl^isl iipun tho most improved class of water wheels boinj:^ used. Two other mill privileges of four runs of tjtonos eaili, wore sub^oiiuently loa-iod at this jilaee. There is, on one of iho sites, a country t-nw null, 'villi Avator wheels of tho muht priniillvo anil inferior class, such !W sliouUl not in any way be permitted upon canals, whore iho cost of briii^Mnuf water to the mills ha.s boon M» heavy. On the olhor site, is a mill with the same ile>ci ition of water wheels, water leini; wasted in propollin;;^ woodwoi-lviii;^ maehineiy requirintf but liitlo p()wor. The latter pr(^perty was loat-ed ti) I'hilip (;)aitnan, and siib-oiiiu-nllv tran-^tciTod. Tlio following extract ficnn a loiter fioni the Uollectv)r of Canal Tolls, >i'()Vonj[hor 2()lh, 1&77, will explain the jiosiiiim vi all'airs: — " I'm iiii; the time (ieor^o Stephen ii>od the power at Iroquois, 1 wrolo hin\ requesting payment of rent, when due, and not getlint; answer to .my of my litters, I wont to Montreal, but did not succeoil in collecting his rent. 1 explained the matter to liisptctur IkW, who also called on 8to)iho!i for ])a3'ment of amount duo by him, " ►Stephen sdd t!»e property to Claves tV Smith, who had possession of itlor two or tliroo yeais, Tlioy did not use the water power and woulil not pay rent. Clisyos tt Smith fold iho name jnoperfy to V. O'lviolo, wlio has u>oil Iho water-power .^irieo ho got ])os?o.-sion of tho jiroperty, and, although I liavo made many c;ill& u])on him for rent due .^inco he had posseshion, I have not been able to collect is " This is Jin tK\ami>lo (sf tho traris-lerenco of Uoveriiment jnoperty from ono parly to another, with long standing arrears ol rent against it, in this c.iso 14 years, Milh a (alance ol rent vino of l?-, 1(H). 01) ; passing throiij;h tho hands ot' wealthy people who letiir-o to j»ay rent, an 1 eventually into tiio hands of poor men, iVoju whom the tlovoiiimont will prt)bably not be able to collect. Tho ])resont occupant requires little ))ower. lie considers bo is paying too high a rci't, and that it should bo roduceil. Not having tho capital to improve the i)riq)erty, or jilaeo in it better machinery, tho rent is no doubt high fur tho amount ot power ho ( htains, A ]»roperty, con^^istingof buiUling, ])oor and broken down wheels, Hume, and (iovei'iimont lea^-, is ootisiderod as a whole, and in its dilapidated condition proves a ])Oor investment, whirh ho wishe.-, to improve by refusing to pay arrears and having ihj rent reciucod. These cases, of which there are many upon the canals, shuw tho importiUK'O of tho recommendation made j)reviously, that no lessee bo allowed, or that ho bo rendered unable, to execute a legal transfer of a tloverni lent lease without consent from the Department, and until ail rents duo aro j)aid. A man may bu3' a property with a largo claim against it, of which ho may have imperfect knowledge, this claim caused by the collection of rent not having boon enforced frra wealthier people who have hold the lease previously. Carman tfe Corapaii}*, occupying tho next privilege, nro in arrears, ^fr. Vritton, Inspector of Canal Tolls, makes tlio following remarks as to lessees in this locality : — ''Tho largo arrears on the Starch pro|)erty aro known to tho other lesseos, and this has demoralised them, 1 question if any arrears can bo collected horo without making arrangements to stop t!ie supply of wi.ter, or unlo.-^s some such moan.i bo taken.'' Lociv Xo, 'Jo',— Point CAuniN.vi,, At this plaeo there is a mill site and water for eight run of stonoa. deeded in feo sim| lo, as compensation for damages. With reference to this grant History of a p-ant, there has been considerable trouble and long standing claims ; tho a"^ nuli^VtVand first coiTospondcnce commences in 1813, the last is in 1882. water power ^t. tho date of tho construction of tho C{alo]>3 Canal, thoro wore tlio ruins of a mill, and a crib work pier, extending parallel to the current of tho rivei, by which a low head was obtained, and a power created of small extent and little value. This ruin, and tho adjacent land, was owned by J, .To.'ssop, When tho surveys of tho canal Avoro comiileted in 1813, ho writes to tho Prosidont of tho Hoard of Works, i 96 asking, whether ho would be inclined to negotiate for the use of the water, from the canal, for a mill, in lion of daraagos which hia mill properly would sustain by the couHtruction of the canal. The following remarks were made by Mr. Froeland, Government Arbitrator, as to this claim : — " On the 15th October, 1796, Charles Doyle, for the consideration of £20, grants to Hugh ilunro that piece of laud now cncumbored by the mill now standing on J'oint Cardinal, with the water fall and any other appurtenances and privileges thereto bolouijing. On the 1st April, 1335, Munro conveys to Cassclman on iho same terms, and on the 17th Juno, 18-i3, Cassolman to Jessop, likewise." IIo then enters into titley, and states: "Such being the case, I think that Mr. Jepsop's cl'aim to the land is not only vitiated, but his mill privilege is set aside in a great meiiijuro. The mill building is at the foot of the rapids; the fall is all above, on Seers' ground. Mr. Jessop rests his claim, I think, chiefly on possession of this eaid t-ti ip of land ; the only possession that appears, is an attempt to make a mill- raco which was abaiidoued, tlio ground never was enclosed, but grazed and used by Seers the same as the rest of his larm. In 1S41 Mr. Jc.sop petitioned IJis Excellency respecting a mill site. It was referred to the Board of Works, and forwarded to tbo Engineer of the Canal for report. The President of the 13o:iid of Woiks, Hon II. II. Killaly, reports to the Provincial Secretary: " Ejom the report (the Engineer's) and from Mr. Diaper's opinion, it aj>pcars that the original mill only existed by suft'er- ance; it further appears, from the report of the Engineer, that when the the canal was contemplated the i e-crecti'.m of the mill became a niatter of specula tion ; but under all the circumstances I do not see that Mr. Jessop has any claim either to ilie nvil site or for comjiensation for tlio ])ieparation which ho says he has made for the I'ailding of the mill, inasmuch as prior to the preparation being made, permissi';n fur its con-itruction was refused by the Commissioners. When tl , works are sufficiently advanced, a mill site of mneh greater value will be created near the lock in the vicinity of the okl mill, and the intention of the Department is, with the appr<>balion of ilis Excellency, to advertise and let this mill site to the highest and best bidder. Mr. Mills', the Engineer's, report referred to above, states with reference to the mill: " The fall here is a little less than 2^ foot. A wooden mill, at this point, was built by a Mr. Munro about lifty years since, it had one run of stones, and did a fair business. Munro became involved and sold to Martin Cassclman. Said mill was a ruin in the spring of lfe33, and mu?>t have been t-o for some years iMcvious to that date. It is believed by some it was burnt der-ignedly by the boatmen, who treated it as a nui-ance. In the spring of IfcuG, said Cassclman proposed to rebuild the mill, which was sub^^equent to the Act authorizing the improvement of the St. Lawrence, and applied to the Governor General for that purpose. The application was sent to me at Cornwall by the Commissioners for the improvement of the St. Lawrence, ask- ing for my report upon that application. That report, rejusmg pemiasion, is in the report of said Commissioners made in November, 183G. However, our surveys, m the spring of 1843, found a stone mill conimonced. * * s)e >r: There have been no expenditures upon the mill-race since the mill became a ruin, and I am not informed as to the other preparations referred to. I cannot see that the present owner, i^lr. Jessop, has any claims to preference as to the power to be disposed of ultimately." Another petition to His Excellency was f^cnt by Mr. Jessop in January, 1815. A report to Council was made on the 7th March, 1815, stating that Mr. Jessop had set forth his case more fully, and Mr. Draper v'J',8 of opinion he had a good claim, Mr. Killaly lecommcnded that a mill site and water from the canal to propel his machin- ery bo given him under certain conditions and in lieu of all damages. This report was approved of by Council 9th April, 1815. Mr. Jessop assented to the proposition, but demanded the whole power at this lock. A letter is written to Mr. Jessop expressing surprise at this pioposal, saying iili|l:: n II', from tho tain by the •bitralor, as £20, grants ■itanding on J ])riviloge8 Imun on tho nk that Mr. ct aside in a 18 all above, ssion of this make a mill- and used by ;ito. It was al for report. , reports to and from 1 by eutt'or- ,t -when tlic jr of specula as any claim siiyd ho has 1 being made, en tl . works ited near tho lent is, with tho highest oronce to tho is point, was md did a fair id mill was a A'ious to that who treate«l aid the mill, Lawrence, was sent to iwrence, ask- sio7i, is in tho surveys, m ^ There in, and I am the present e disposed of nuary, 1845. 3ssop had set claim, Mr. his machin- This report )0wer at this posal, paying he has been most liberally dealt with. " With reference to tho oxclusivo privilege you now demand, so far from consenting to it, tho Eoard mast restrict tho volume of water, to which they will give you a right, to a quantity not exceeding that sufficient to work four runs of stones." The Attorney-General, West, reports in Augnst, 1845, that it is a matter for tlio Board to consider, whether they had not better arbitrate on Mr. Jessop's whole claims at once, than give him a mill site and have afterwards to go to arbitration. "Should an arbitration bo resolved on, I think it should bo on the whole Question of right fiom the beginning." On tho 23rd August, 1845, the Board of Works withdraw their offer and leave tho matter to be decided in the usual manner. The Board informs him that in the propot-al they wore desirous of saving difiiculty, it an equitable settlement could have been effected without too closely scrutinizing any question of strict legal right. In answer to a communication, 4th September, 1645, ho is informed that all further negotiations on the matter are at an end. On tho, 4th February, 184G, II. D. Jcssop, M.P.P., writes to tho Hon. Mr. Daly with reference to his brother's claims. On the samo dale the Board of Works informs Mr. Jessop that they arc disposed to accede to tho oiler mude in his letter of the 4th September. The proposition made by Mr. Jeesop, M.P.P., Avas that he should have a mill site with tho exclusive privilege of drawing from the canal sufficient water to drive six runs of stones, any other lease to be for manufhcturing purposes other than grist or flouring mills. These protracted negotiations about a mill fcito, and the land damages to which I have not alluded, were ended upon the 6th January, 1847, when a grant was mado of a mill silo with eight runs of stones attached, tho Commissioners of Public Works to construct and maintain a regulating weir ov?r which the water must pass. The history of this grant may be summarized : a valueless mill propcrt}- at a small piice is bought when tho line of canal was settled upon, probably for specula- tive purposes ; that the tirst report to Council refuses to recognize any claim ; that the second report does, and offers power for four runs of stones and mill site ; thnt this offer was withdrawn and negotiations stopped ; that Mr. Jessop was willing to accept six runs under certain conditions; that he received for this ruin of a mill for which £20 were paid, and for alleged damages, to which there wore great doubts if ho had auy legal right, a mill privilege and power for eight runs of stones ; a year afterwards, a mill privilege was sold by auction, on the canal gome distance below, which would bo the value of tho concossiou at th:it date, some 3'{-8 per annum, representing a capitalized value, at per cent., of nearly 85,500. Oiiginally, what v/as known as tho Galops Canal terminated at this point, sub- sequently it was found that tho mitro-sill of tho lock upon tho Iroquois Canal, some miles below, had been placed too high. To raise tho water in this canal it was determined to connect the two; this con- nection, known as tho Juiiction Canal, was finished in lfa5(>. On tho 15th May, 185i?, Mr. Jessop came forward with another petition to tho Governor General, for alleged damages to his pro[>orty and mill site, by tho con- struction of this canal. IIo had done nothing, in tho meantime, to utilize tho water- power nor had any miil been erected. Ho states that the mill site was beautifully situated; that tho eligibility, beauty, and value of the town lots were much enhanced by tho river frontage; that tho said .liinction Canal had cut off the mill isito and town from tho river, and substituted tho loul margin of a muddy canal lor tho edge of the clear water of tho St. Lawrence. A year previous to this, a Mr. Hitchcock wrote to tho Department in July, 1858, rf questing that an Engineer bo sent to layout a mill-race, and stated : "Tho privilege of building mills at Edwardsburgh I consider already d si^osod of by tho Govornuiont to James Jessop, and by him to me." In March, IS5^, tho Chief Engineer of Public Woiks reports against Mr. Jessop's claim, and states : " Having seen Mr. Jessop's property, both before tho works woro commenced and after they wero completed, I am of opinion, if any such damages are dune, they must be of a very limited extent. Alleged damages by the ooustruc- tion of tho Juno- Uou Canal- r 98 " As regards severat oo from tho rivor, I havo only to say that when the Dopait- mcnt required tho necessary hnnds for the canal, 1 was directed to consult Mr. Jiichardfi, tho Attorney-General, on this point, who informed me * that no person could sustain a claim against tho Government, for any UoO made of tho rivor, ho long as drainage was not interrupted, nor any portion of their lands flooded.' Neither ot' ilieeo huvo been done in the caso in question." In 1858, this properly came into pos.seh;.sion of W. T. Benpon, Esf^. In February, 1861, ISh'. Jiciison wnlcs to tho Conimii-sioner of Public Works : — " Wlicu the power, for the eight runs of stones, was convoyed to James Jessop, the Junction Ca»ial was not made, and the head of water remained tho same whether tho Kivor St. Lawrence rose or f'elL" lie complains ot being short of water during Ihe last month, — " 1 beg you will look into the matter, and make arrangements to keep the head of water as high as it was when tl- it privilege was conveyed to Mr. Jessop, {IS it is as much my property' as a freehold estate, and can bo damaged with as little imj-.unit " In 1858, Messrs. Ecnson and Aspden, alici- the Junction Canal had been built, and when this alleged damago to tho Jessop piivilogo should bo known, applied for a mill privilege, with jiovver for four runs ot'^ton^^s at this place. This was referred to tho (-hicf Engineer of Public Works, who reports : — " liio applicants, having purchased Jessop's rights to tho water, &c., find they have, alicady, ncarlj' as much power as they require; but that their land is not so suitable ibr their contemplated woi'ks as that jjuition reii-ervod by tho Government. " But on their being informed that tho land reserved was valued pjrincipally for its suilr.blencss for milling purposes, and therefore unlikely to bo leased, unless at a like rate as if the power was ui-,ed, they projierly nuike the application for both lot and power, end verl.>a'ly express themselves pati.-fieJ with the capacity of tho head-gates." He then reports in favor of tho application, Avith certain conditions, — they to pay 81GO.0O per an'uim, rental. In May, ]8fJ(>, Mr. Eonson piircbasod from Mr. Aspden, his iiiterest in the lease, which luid been granted them ; Mr. Uenson then became desirous to havo the lease made in his o^vn name, accordinglj^ another lease was so drawn up, in 1872. In May, ISTO, Walter Shanlj', C.E., M.P., writes to the Department with refer- ence to tho claim of W. T, iJenson, find states : — " After carefully looking into the case, I cannot avoid coming to the conclusion that Mr. Benson has a valid claim for compensation lor the dimiuuton of head, on the eight run ]iower bought by him, of Mr. James Jessop, and I do not think that his proposal, that, in compensation for ihu damage dono to tho Jessop privileges liis lease of the Government pi ivilego of lour runs should bo converted into a fee simple ownership is unreasonable or extravagant. " If tho above mode of settlement of this long pending claim shoi Id bo acceded to by the Department, Mr. Benson will not then be in tho enjoyment cf more than an eight run privilege. Heretofore ho has nominally had li runs, the oight purchased from Jes~o]), and the four leased from tho Department, but the construction of tho Junction Canal reduced tho power by one-half" On tho 9th September, 1881, Mr. Shanly, again writing with re orenco to these claims, alluded to tho above let'or, and to some verbal settlement bong mado at tho time. He reiterates tho damage done on account of tho loss of head : — "For this diminution of power, Mr. Benson has always, and porsi-itently, claimed compensation from tho Government, — a claim that has, in effect, been recognized, in as much as payment of tl:o rent, of tho four run Government water-power, has never been exacted, though demanded every now and again in a pro forma way." This claim has, in fict, never been recognized by the Knginoers of this Depart- ment. Tho otlect of this non-collection or refusal to pay rent, on tho ground of ficti- tious claims, may bo scon by an extract from Inspector Witton's report upon tho arrears of other lessees on tho Williamsburg Canals: — " The large arrears on tho Starch property are known to tho other leeseos, and this has demoralized them. I question if any arrears can be collected without making arrangements to stop tho supply of water, or unless some such moans bo taken." 99 Dopatt- nsulc Mr. ao povfion 31', hO Icnt^ ^oiLhcr of February, 1C3 Jcssop, 10 whether iter daring ^ements to ^ed to Mr. iir.gcd with been built, pplitd for u u» referred ; , find thoy id iB not BO ermnont. ncipally for unless at :i both lot ar.d head-gates." -thoy to pay 1 in the lease, vo the lease .2. iiwith rofor- conclusion of head, on not think op privileges 1 into a fee JO acceded to -loro than an [ht purchased Ruction of the brco to these made at the itly, clai mcd jcognized, in Icr, has never Ithis Depart- lound ot fi^^ti- art upon tbo legseofl, and Ihout making taken." In his letter, Mr. Shanly also states: — " Of the fact of the diminution of head there is no question. The level of the canal below the lock wa^ raiHcd, that of the river above raceway remaining unchanged. These are simple facts admitting of no diHpute." On the 21st January, 188'J, Mr. 8hanly writes to the Department with roferonco lo the above letter, and Mr. Benson being notified by the Law Agents of the Govern- ment, that unless arrears were paid up proceedings would be taken against hira in the Exchequer Court. lie ptides:— Mr. Benson's individual intoreijt in tbo water- power, at the Galops, has long t*iiico merged in that of the Joint Stock Corporation carrying on business uijdor t'.ie name of "The Edwardsburg Stuich Company" aa President of which it is I now write. The Edwaidsburg Starch Company, as Mr. Benson's assignee, absolutely deny tb;it there is anything duo to the Government for rent of water-power, bat claim, on the contrary, that the Government is indebted to the Company. The amount in arrears, upon the lease from tho Crovcrnment, is endeavored to bo made a sett-oil' to the damage done tho Jessop grant by tho construction of tho Juuc- tion Canal. Theprincipnl point, thelofsof hen. 1, of which ilr. Shanly states as a fact admitting s "fl 1 'm of "^ ^''^pi'tfl) ^V'l' ^^'"' bo dealt with. Mr. Jessop, in his original claim Yor^loss of head of 185?:i, mako,> no a'lusion to this loss, but grounds tho claim for iiivoaugated. damiigos ufion tho mill being cut off from the Eivor St. Lawrence, viz : — " That tho water privik'ge s'o t;;-.intcd to your petitioner was a.'linirably situated at tho foot of eaid canal section in di. oct communication with the river, and thereby Avith tho opposite sh-io ot the St. L;i";renco, from where a good dcul of custom was uiiticipatevl." The loss of head has si i ice been ad'led. The levels of tho water in tho I'iver St, Lawrence may be classed under two In ads, normal and abnormal. ^Nonaul level, tho natural flow in tho river due to its hydraulic gradient, or its surface slopo, and tho height of water in the reservoirt^ by which it i.s fed ; this dojionds upon t!;o rainfall, and other climatic causes operating over the large territoiy whose water bhcd is drained by tho St. Lawrence. Tho variations in these levels are not great. The abnormal levels are thot^e occasioned by long periods of heavy wind blowing up or down the river and lakes, and I'}' tho formation of ice-jams, anchor ice, &c., at various localities, which arrest tho natui'al flow, and change tho normal levels of tho river. In dealing with tho water jiowor for mills, whether practically, legally, or Kcientirically, we can take only the not mal levels, in estimating power. When tho Galops Cunal was cou^ tructed, at the outlet lock, tho lift of which forms the power of this grant, there wore no water registers for data, the sill was placed to give 9 feet of v«iter afc the supposed lowest stage during tho season of navigaiion. After tho construction of those two canals, tho mitre sill of tho lock at Iroquois was found to be set too high. The Junction Canal v:as constructed, w'lich raised tho water at Iroquois, sorno two foot, taking advantage of tho differenco of level of the river, between tlie foot of the Galops, and tho head of tbo Iroquois Canal. It is evident that if low water in tho river was nine feet on the till of that lock, before tho construction of the Junction Canal, nine feet water on tho sill since its coiistruction still remains tho level of low water, and as the level of this canal is kept by the suporintondcnt at 9 loot G inches during navigation, and at Sfoet 6 inches during winter, for the mutual benefit of the mills at Iroquois, and at the foot of tho Galops, wo find that during tho winter, when the supply of water is iniiuflioiont, and full head is important, this grant has (J inches more head at normal low water than at the dnto of grant. Tho Commissioner of Public Work-;, in his report for 1819, previous to tho con- btruclion of tho Junction Canal, says : — "Point Iroquois Canal. — No in I ci ruption occurred here except that occasioned by defiL-ioncy of depth towards the latter part of tho season. The sill of the lock being 9 inches higher than tho rest." With reference to the Galops Canal,— "The navigation of this canal was not interrupted during tho past season." o 100 Although I find no watci* rogislor, of that date, at those two placog, yot otliors on the St. Lawrence canals go to show that tho river in October, If'K), was below ila normal level, which proves that this mitre sill wa.sof snfticient dejjlli an to low water, and as the level of the canal has not been raised above low water normal lovcl, tho head could not have been aifcctcd. In fact, tho mill site has been improved by giving a constant level for the tail water, and preventing back water npoii the wheels during abnormally high stages of tho river. Those facts are proved by impartial and coni])'.tent tfstimoiiy. The Cliiut' Engineer of Public Works, who had previouf>ly been Engineer .>( tho ,Juiicti(jii (';;n;il, in reporting upon Mr. Jcssop's claim-i, before this question of l».is of liead bud lei'ti raised, and without reference to that point, but only how far the mill bile bad sulloiod from being separated from communication with tho river, states in November, 185 r' : — " And 80 far as the claimant's mill site is concornecl, it bus been benefited, ari a uniform head of water will now bo maintained at all tir.icH \)y the river having been shut oflF, which frequently rises upwai-ds of three feet higher than the canal surface. His land is, therefore, less flooded and tho waterfall for tho greater part of tho year greater, so that, in this v."ew of the case, the claimant's piopcrty has really been rendered more valuable." This gentleman was on the ground both before and after tho Junction Canal was confetructed, and should, therefore, give authoritative evidence upon this point. Mr. Baillairge, who had also been engineer upon tho canal, when ho laid off tlii? property for Mr. Hitchcock, states with regard to boundaries : — "Tho level of thr canal being lower than that of the high water of tho Eiver St. Lawrence, there remains a btrip of land between the present and former water margin.' There is not tho slightest doubt that no claim could bo substantiated on account of loss of head by raising the level of tho tail water. Having disposed of this proposition, wo will tako the second of Mr. Shanly's: — Bead proved to have "The level of tho canal below tho lock was rait-ed, that of the been incieased. river above raceway remaining unchanged." Since tho date of tho Jessop grant, tho level of tho canal, or head, for this power, has been rendered more constant, and increased. First, by extension of a pier up- wards, at the entrance, by which the water on the mitre sill was raised nine-tenths of afoot. Second, at the date of grant tho canal was fed by tho valves in tho gate«, some 40 square feet of area. Since that dato a supply weir has been constructed, giving 98 square foot additional area of .supply. Tho improvement of this mill site, which tho Government might claim compensation for, on account of the expense of construction of the piers and supply weir, a certain portion of which could bo charged to the "hyaraulics," was, when the river fell to nine feet on tho mitro sill, tho gates would be opened and tho level of the canal and river at its cnlranco be tlic same, but before tho pier was constructed, at tho same 'Aogo oi tho rivor above Iho piers, the level of canal would have been only eight feet, that is one loot head, in addition, has been given in low water to this grant sinco its date. By the construction of the supply weir, tho improvement since tho dato of grant has been practically this : as befoi-o stated, it is not judicious to open tho guard gaicH with a greater head, than 025 of a foot between the river and canal, we will take ((•."iO of a head before tho gates are opened ; when this grant was niadf, at any time the river was 9-30 feet upon the mitro sill, tho valves in the gates woulddis^ch.irgo into the canal 109 cubic feet per second ; after the construction of tho supjily weir, the river at tho same level, the supply would bo incroa.'ied to 378 cubic feet ]>er soeoiid. In power, taking wheels, at tho dato of grant, giving 50 per cent, for us.00 per annum, might with equal justice havo refused to pay rent, for tho last 22 years — that privi- lege i::- subjected to more fluctuation than the mill privilege alluded to, — tho Jessop — insomuch that tho only means of supply aro the valves in tho locks, while at tho other canal there has been constructed a supply weir for the benefit of this granl,and tho mill privilege leased. Mr. Gib-on stated to mo that, in the twenty years they had been occupying tho properly, they hud been idle for govoral winters for varying pei'iods. In winter they aro subject to tho samo loss of head, from tho canal level being lowered through insufficient supjjly. Wo will suppose that tho Junction Canal affected tho Jessop grant,what grounds would it be for not paying rent upon the other i)riviloge, or what On the supposition claim would tho Starch Company havo for damage done to Jessop ? Caiiil dopreSatod The property was bought by Mr, Benson after the construction of tho the Jossop grant. Junction Canal, and he orected his mills subsequently. He applied for tho four run of stones previous to purchasing the Jessop property, ho obtains a lease of this four runs subsequently, tho Government supply him water in tho same manner and subject to no more disturbing influences than upon other canals. According to Mr. Shanly's statement, if the construction of tho Junotioa 8^ 102 Canal reduced the power at the lock from twelve to eight runs, he evidently bought only four runs from Jossop. Now, Mr. Jossop never assignod his claim for damages to Mr. Benson, for. in 186J, after the property had been sold to him, Mr. Jespop came forward again with his claim lor damages, Ihoy were rofon-cd to the Law OlHccrs of the Crown, and be was informed that his claim bad been ao referred, and that the Commissioner is fidvi.-od that it cannot bo rccogni/ed or ontortaiiicci. Therefore, as the Government bad laid oIT twelve runs at this place, before the Junction Canal was built, after its consti notion this power was reduced to eight runs, four of which the Government leased, Icnving tiio Jcs.op grant a f'otsr run privilege, which ho sold t<) Mr. Bonbon, Mr. Jensop urging his claims for dumagcs four years after ho had sold the property. If no n.sBignment of those claims was made by Jessop to Benson, who bought depreciated property, which he should have known to bo the case before purchasing, and the Starch Company should have know, after twenty years experience, in such a case they cannot Bot otf rents, not paid, on property leased, for which they have bound themselves to pay a stipulated rental, knowing the grant they had purchased to have been depreciated. I have traced this grant from the commencement; a valuable mill Flte, costing the countiy a largo amount of money to create, and au additional amount to supply with water, was given for a valueless privilege costing some £20, where there had been only one run of stones in ojjoration, aiid abandoned for years; that this privilege was never used nn*il after the construction of the Junction Canal ; that no claim for loss of head upon which the hiler occupants base their claim ■was made by Mr. Jessop ; that the property was bought with the loss of head an accomj)lished fact, if the assertions of the claimants aio to bo accepted. That mills were erected with this knowledge, four additional runs leased, and an instrument executed by which tlioy, the lessees, bind themselves to pay a certain rent. Now the assignees of this loaso wish to set off 83,520.0D duo upon it for damages to which Ihoy havo no claim. Wo havo now soon that, first, there was no dumago; second, if there was any, the purchasers of this grant have no title to such damages ; and third, that the Law Officers of the Crown held that the original grantee had no such claim. Connected with the claims of Mr. jessop, there wore damages to land, and, with Mr. Benson, numerous disputes about land leased and supposed t have been leased, which I havo not entered into, confining the question solely to th hydraulics. The original grrut states :•• " An upon this fulher condition, that if in con'^cquence of accident or injury to, or th'i necessity for repairs or altcratiori of the said canal, or any of 5o.claim by con- the works thereof, or from other it.evitabin necessity, the supply of " watoi' shall be diminished or cut orV, the said Jamos Jessop, his heirs or assigns, shall boar the loss or damage resulting fr'>m such diminution or cutting oft' the supply of water without recourse upon Us, our Heirs or Successors." An inevitable recessity for a short time in wir.Ler dimiui-shes the supply; navi- gation required that this canal should bo oxtentled some distanco down tho river ; therefore, on both giounds there could be no claim. As stated proviouslj', at the date of tho grant, the power would bo more variable and infevior to tiiat after the Junction Canal was built, the canal being fed through the Vidvos in tho lock gates, similar to the six run privilege at Morrisburg, which has paid rent for over tliirty j'cars, an tho country, while at Cardinal two-thirds yields no rovonuo, it being a concession from which as has been shown, tho country has rocjived no adequate return. Tho power here, although shown variable, should be worth $10.00 per horso- |)o\ver. When, in 1H.')S, tho Chief Engineer reported in favor of tho application of W. T. Benson, ho set tho pri jo at 61.00 per horse power per annum which was higher than now paid for power. Upon this reportMr. Killaly, tho Assistant Commissioner of Public Works, endorsed: — " I concur in Mr. Page's suggestion as to tho disposal of tho lot, &c., but I regard llie rent ho proposes as questionably low ; by the arrangement proposed, tho parties would have an exclusive monopoly to tho whole water-power at this site, for only §lt)0,00ayear." The rovonuo from this site should be $100.00 per annum. 101 li m WiLLiAMsnuRan Table of Water Wheels, approximate tlischiargo of Water and Number of HorHo- Point, Rapide Plat Numo of Lessee. C. C. Furrnn. UenJ. Chaffer . do Name of Sub-Lcasce or Occnpant. Wm. Gibson. do do do W.Elliott. iMcKcn^io. do Bailey & Mills. John Molsou... Cameron k Mulaiiitj. Philip Carmen. Pat. O'Keefo... JamcB Jessup. |3 e n s 11 & AspLen. Edwardsburgh Starch Co. do Situation of Mill. Farren'a Point Canal. Lock No. 22. Rapide Plat Canal, Lock No. 23, Mor- risburgh. Date of Lease. Terra of Lease. Description of Mill. Feb. 12, ■ 1852. Galops Canal, Lock No. 25, Iroquois. do do Lock No. 20, Point Cardi- nal. June 6, 1853. Grist Mill. ... Shingle Mill ., Woollen Mill. No. of Piuns or Saws Leased. 21 years ..FlourMills. July 1, UiQ. do 4 runs. 6 runs. Rent. Free Grant 240 00 June .,1840. Saw Mill and Finishing Shop Grist Mill. 4 runs.. do Nov. 12, Jan. I, 1832. Saw Mill ;4 runs.. 1853. Aug. 22 1865. Jan. 6, 1847. Oct. 21, 1861. do 1, 18C3. ^Sasli niid door 4 runs... factory. Starch M.anufnc- 8 runs., tory and Glu- cose Factory. Nov. IG,1858 Flour Mill 4 runs... 140 00 140 00 140 00 Free Grant. IGO 00 826 00 105 AMSBUROn of HOI'HO- inido Plat of or Rent. TB ed. 39... Free Grant "11" 24C 00 UO 00 US...' UO 00 140 00 Free Grant. 160 00 826 00 CANAl-a. powers UkoJ, nn'l tho Mdjliiiioiy in (I'.o Mills uml Galops Ciinuls. (linwlng ■\Vtt(or from Iho A<*arran'i Pcdcription ol' Machinery ill Mill. Description of Wheola in Use. I riina and mu- cin nery. 1 Bbingle machine 1 set of cards ■! runs and ma cliinery. dnublo sets of roils, 2 runs on mi dd li nga, 16 bolting reels, 1 separator, lemut- ter, 1 brush, ship eluvutor. I circular saw. Planer, rip saws, &c Description or Milker. N'anio. LefTel. Woodenbucket Central dis- charge. do do Tyler. , Woodenbucket Central charge. Leffel dis- Tylor. 1 circular,! shins^le 1 butler, and 1 i-tave saw. i small circular saw and wood- working machi- nery. 3 runs of .stones, 70 (ili.nkers, stirrers, I and machinery in the manufac- tury of Starch and Glucose. •4 runs and machin- ery. Turbine Woodenbucket : Central charge. dis- do Woodenwheels do Turbine Tyler.... 'do .., Lcirci..,, M in. 56 64 GO 48 60 48 50 48 CG 72 60 66 72 Water Dis- charged and Power. ft. in 3 6 3 G 10 oh 10 10 .3 - I- o fS u 135 8 8 8 6 6 6 6 6 GO 2G3 Ol— < o ie.-i of Lake Erie, round to Dundas at the upper end of Lake Ontario, tho only mill ]iossosHing a Bufficient bupplj* of water to carry on business to an extent that may bo considered mercantile, is that of Messrs. Clark and Street, at tho Fulls." hj * * * *' As this Company will be justly entitled to all tho advantages that will result from the command of tho water, throughout the route of tho canal, tho mills now ©rect^d QQ that part of the Twelve Mile crock (which will bo benoSted with an III — rmir-n""i'rr'*"'""^ lOT additional Bupply of water), must bo pnrphasod nt a fair valuation from the prosont propriotors, aud bo at the diyposal of tno Company, aflor tho completion of tlio cut. luliciou.s which " TL'O procooda from tho salo of tho intormodiatc sites for hydraulic purjio^os, tho incronsed raluc of tho mills now orcctod, and tiio rental of tho Company'ri iw) ^'rand ostabiishrnontH on each ond of tho canal, will ol itHolf brin<^ in a iiaadnomo uividond to the BtoekboldorR, on tho amount nccpf^sary to comploto tho whole." In answer to a quo.Mlion put to Mr. Samuel Clowes, I'^n/^iiiccr, by thoCanu! Com- niit'.i'o in 182t, ho replied that, — " Tlio loo.-t jiruiniiiont situation for niai'liiiLMy, on tho Nia;^aro route, is at (rcoigo Kcofor'.-<, Msipiiio, where thiiy can bo orcctod to any exteiit, but tukir^ the whole into considi'nition, a docidrd preforenco mu«L bo given to t!io Twelve J.Lilo Creole route, for hydnmlic pui-poHos, Sci-.." " In the report of tho Prcidont and Diroi'tor.s of the WoUand Canal Com])aiiy, dated ill Aufijust, 182.'), it is stated: — " We connect an c(pial extent of country at'a comparatively trifling expense, combine tho most valuiblo and extensive hydraulic ])riviIoij;es, &e." In a rcjport by Dr. Strachan, tho foUowiii^ extract a])poar.^ : — "Tho situaliun for machinery on tlij lino of Lhit) can il, both f.)r local and naluril advanta^'os, is not e(iu:illud in America. There is not a mill feat on tlio whole peninsula, betvviiMi tho.so lakes, where a tlourinn: mill can be cslaulished, v. hiidi may bo considered e\cn mer- cantile, except at tho Falls of .Ninpira." Mr. Keelor's report, above referred to, oB'.imalcs the annual rental of t!io mill properties at £2,800. The Act of incorporation states : — " And .also to select such convenient sites for such and so many mills, manufactories, warehouses, and other erections as laay bo required by tho wiid Company for the puip().'roa thereof, and to purchase the rame to and fur tho u,-e of tho said Company." Sometime alter tho Company had coramonccd construclincj the work, and tlioy had received loans or linancial assistance from both tho Imperial Govern mcnt and that nf tho united Provinces of Upper and Lower Canada ; three Government Direc- tors weio appoirited in tho interest of tlie ^tock hold by tho Canadian (iovernmont, one of whom, at one period, was tho celebrated William Lyon McKenzio. One result of his dircctorshi]) and invostic.ations was his foi-mulating thirty ohai'gcs against the Directors, OtMcers and iluragerH of the Wei land Company', before a Select Committee of the House of Commons, which was appointed, in 183(), to enquire into tho nianon'omont of tlio WcUand Car.al. The report of this Committee and tho evidence taken before it, coraprii-e a volu- mijious document of 575 pages, printed as an Appendix to tho Journals of tho House of Aseombly, 1S3(!. These charges, tho evidence and finding of the Committee, are foreign to this subject, with the exco])lion of the " hydraulics," which occujiies a considerable portion of the report, it would bo UDneccssnry, to rofer to even this portion of the report, only as before staled, we have the reiics ot t'lat admini.«-tration perpctunted upon the present cannl. The Government having ns.'umed tho \Y^ell;ind C'aiiul as a puldic work, and dischai-ged the liabilities of tho Conipa;)}', tho country has jviid for tho transactions which gave rise to these investigations. The co.'-t ot tho '* hydraulics" is included in the amount for whi(di the peojilo are taxed, by the country's di.icharg- ing tho liabilities of tho Welland (Janal (.'ompnnj-. Tho following extracts and cviiionco are" ttikcn from the Appendix to the Journals of the House of A'^sembiy, above referred to, and from documents in tho Welland Canal office. Thoro wore considerable contentions with legard to tho 7-outo of tho Welland Canal from tho summit nf^ar Thorold to PoitDalhousio. The fi>llow- ?"^ac wMn S° te**^ ing extracts are given to show that tho longer and nioro expensive mining the route lino was finally adopted, on the ground of its Buporiority for hydraulic c{e»nal. purpos?is, 108 Francis Hall, C.E., in his ovidcnco boforo tho Soloct Committoo, slateH : — *' That a bettor and more direct lino could bo mado botvveon those points, saving throe or iour miles in di.stanco." jMr. Harrctt, O.K., cmploj'od by Iho Weliiind Caual Company, reported in 1821 ill r:ivor of the Twelve Mile Creek route for "hydraulic purposes." Samuel Clowes, an ongiuoor also ornployod by tho^Welland Canal Company, ro])ortcd, in 1825, as follows : — " Takint; the whole into cotisidoialion, a decided preference muht bo given to the Tvtlve Alilo Croeic route for h3-diaulic purjioscs. Mr. Proctor, agent for tho Company in ^'ow York, transmits a letter in 1325. einlolj-ing the views of the shareholders of thr.t city in reference to tho location of the line of the Wellund Canal, fr>)ir which the following is an extract : — " A straight course, as near as may bo, taking into estimation tho comparative oxpcn.'O of each, ought to he taken in ])referen('o to any circuitous one, and that no wilier privileges ought to induce the adoption of a longer route. They believe thiit tho water could be apjilicd with equal advantage for mills on tho short route a-? on the circuitous one. Jn mulcing tluvte remarks on the route, they, however, by no means think lightly of the water privileges; on tho contraiy, they think them very important, and are dcidroiis that the cut across tho riilge should be deep anr route v.-^as at otu^e adopted, witliout even an examination of the direct lino, sind the public suObi'dl a pirmanent lo.^s of many thou-*and dollars in order that Mr. Merritt's mills might find a purchaser and his landed property be enhanced in value. At one end of tho canal it is exfondod four and a half milo-s to benefit Mr. Henry J. J5oulton at tho co.'^t of the countr}'— at tne other it is entered nearly four miles more to serve the private interests of Mr. Hamilton Arerritt. * * * * m,._ Hall's report e.^plains the great advantages to be derived from adopting the direct route oven now, and I fully concur with him in opinion." it may bo concluded that tho route of the canal becomes an clement in tho cost of the"Hydraurcs." A large amount of money, chargeable to somo extent, to tho hydraulics of tho canal, arose fi-om a sale made by tho Company of all the land and Tlie first Hydranlio water-power along the lino of canal. This forms Mr. Mclvonzio's uXT^ " ISth charge, which is : " That a bargain deeply injurious to tho inter- ests of the Company, and of the Province as connected therewith, has boon attempted to be carried into practice, by which valuable property granted to tho Company at Port Colborne, and other livnd-i tind waterpowors would bo aliens 109 atcd from tlio Company, and many tliousand of pounds of debt incurred by tbem without value boinj^ received thcrofor." This ti-ansaction consisted in the C-mipany's convoying to A. McDonnell, Esq., for F. B. Yates. Ksq.. who was the puichiif^cr mul an alien incapable of holding;, nil the land and waler-])owor, not rc(inircil for canal luirpo^eB, for £2r),(tOO, to bo paid in ten year8. The Ooniijany, in a hIio;! time afterwards, re-purchat-ed the property. The Committee's finding uj)on this charge was : — " About eighteen months' intorost upon this sum is eaid to have been priid, and principally refunded in the shape of bomL-cs for da nngos, 8;v"d to bo nu8t;;ined for want of water; that it further jippcavs tlsnt o;i tho Uth day of June, 18.'i4, the Com- pany leliniiuished their claims for JC.'r),OUl), and bought back the hunls and water jii-iviloges with tho oxce]>tion of iOO acie^, being the town |)lotsof Port CoU;r.rne and Aihinburgb, which are of great value, and hiome valuable mill files, as detailed in tho evidence, they giving the Company's bonds lo Mr. Yates for tho ])aymont of .Ci7,5('0 with interest. This ti'ans;actii)u to youi- committee is inexplicable, no btaterncnt that they have heard !ias satisfied then, of the justice, or>von expediency, of an nrrange- moi t which, if applied to the ordinary transactions of life, would not only be deemed ruinous but the nsult of insanity. The valuo of pioporty sold, or the au.ount of profits received, by the Hydraulic Company is quite uncertain. Your comuiitteo aro of opinion that it is well worthy the consideration of your Honorable IfoiLso how far it wouli be advisable to tako iinmedialo ntops to cancel the whole atjrcoinent." Froia tho tccords of tho Wellan 1 Land Coinpan}', I tiiul that on the 11th Maj', 1?31, at a mooting of Dii'cctors, A. 2\lcDonnoll being present: — " Tint no pr>pos:d having been received as advantageous as Afr. Yatc^', it be received." From the records of a second meeting, 2n(l June, 1S31, A. McDonnell, President, present, tho following resolutions were passed : — " iOth. Ropclved, That a surveyor bo employed to dt ignato and establl-ih tho boundary of the canal throughout, under tho direction of Mr. McDoiuioll, who will submit the plan of the same lor tho sanction of tho J^oard as soon as completed." "11th. i{e-royent "(St. Cathiirine's Walu'-power Company's lease," namely, a memorandum of agro(>ment between Yatc s, Creighlon and McDonmll, tlic latter two being Directors of the Company : " 7th Juno, 1S:13. Vritnessoth, that tho projiorfy and bylraulio power a!!*eady convej'cd by the ^^aid Welland Canal Cojupany to tho said A. McDonnell s-hall be he'd by him for the bonolit of tho I'o^t. TOo whole property sliall bo divided into 25!) shares of £2.5 each. Yato< Iti 1 chares, McDoaal I Gt) share-^, and Croi^hton 2.'> fehares." Minutes of meeting, 7lh Juib>, IS.'U, M.'lV)iir)ell and Croighton i)reson( : " From tho desire to ])!aeo tho entire control of the canal in the hands of (he Government, and the re-purchase of lands and hydraulic privileges: IJcsolved, that tho Government Directors bo a committee to riO;,^otiate with tho proprietois of tho hydraulics for purchase of Iho same." This committee approve I of t!m roputch.aso f-)r .Cn.SOO. B.nid-* bearing inlei-est for tais amount were given by tlu \Yel!a'il Canal Company, and re ieemoil by tho Government, this transaction costing tho country £iO, 000, for which tho Wclland Canal Company received nothing in return. Fr.'vncis llall, Kstj., tho Engineor. wa-i a-ked bef)re the coianiitfee: — " Did you become acquainted vvith any valuable imj)iovements made to tho Canal Company's proi^ortj, by tho Hydraulic Company during tlie tiiijo t'aoy bold I I 110 tho lands and wator-power ? " — "I huvo not hoard of any, anl nono has boon pointed out to mo, a« far as I can remember." T!iG finding of tbo committee on this point, was that :— " What had boon rocoivod in interest was I'otarnod for alleged dumngos, valtitibli) j)i wjioriy and wator-powor w s retained. oxcIu.^ive of the £17,509 given to this Com- ]):iiiy, over ono-hnlf of tho stock of which was owned by Directors of the Company." Tho Directors of tho Welbnd Canal puccoedod in obtaining an Act of Parlia- mei)t, 4tii March, 1S37, Win. IV., cap. 9.i, intituled : "An Act to provide for permanent coinploiion WoUand Canal." Thi.-! Act contains a olaiiso sauctioniag tho ropurchtnc, which roadn : — " Wherons it i.s of much con.<;equoncci in- making tho said canal ofToctive, that tho entire control of the water ))as.sing through tho sumo, shall bo ac all tiinos withio tho power (^f said Company, and to that end it is desirable that tho several situations along the lino of the said canal, possessing hydraulic advantages, and which have boon hoietofore alienated by tho said company, should be again acquired by them, in order that the same may be leased, upon such terms, as will prevent any dangor of obstruction to the use of the canal. And whereas tho proprietors of sites, an I situation.s, possessing the hydraulic advantages, have signiiied their willingness to reconvoy the same to the said Company, with all buildings, works, and improvements erected thcreo.i, upoa tho consideration that thoy shall receive, from the said C.nn- ]iany, the amount of money paid by them for the purchase of tho said «itos, and fur tho improvements which they have placed thereon." In July, 1837, a warrant was issued by the Governor General, to pay £20,000, — interest payable from July 15th, 1837, — to discharge tho claims of the Hydraulic Company. All leases of water powor.Tesccutcd by tho Wolland Canal Company, between tl'iO date of re-purchase and this sanction by Act of Parliament, contained a clause for annulling them, on condition of tho Company's paying all expenses, in the ovont of the Legislature refusing to sanction there purchase. St Catharines Water Power Company. The foregoing is a brief history of the first Hydraulic Company in Canada, from which the country has had to suffer. This re-purchasing brings us down to tho in- ception of a similar company on a smaller scale, which still exists^ known a^ tho "St, Catherines Water Power Company." On the 1st February, 1330, at a meeting of tho Directors of tho Wolland Canal Company, it was, — ^^ Resolved, that tho Engineer bo empowered to layout a raceway at St. Catharines, in the most f-uitable situation. The mill seats to be sold by public auction on Saturday, tho 5lh June, tho digging to be lot out on the 15th April, but not to be paid out of present funds " This was a raceway purolj'" for hydraulic nu po-^es, made at considerablo'expense, and, as will bo shown hereafter, without any regard to tho'^principles of hydraulics. It was excavated in tho interests of tho Wolland Canal oliicials, and subsequently, entailed heavy expenses for rei)airs and maintenance. On the 4th July, 1831, tho Directors accepted a proposal from certain parties, for tho water fi-om thisracowav; according'y, in this year, a lease was executed to bo renewable every ton ye.'irs, Thi.°, lease, of which tho present St. Catharine's Water- power Company are now tho assignees, with others, led to tho seventeenth charge by Mr. McKenzio, as follows: — "That the President, Agent, and some of the Directors, have been improperly employed in forwarding goods on the canal, and in loa^iiog the water-power thereon, while acting as such oflicers." Tho finding of tho Committee on this seventeenth charge, was : — " Your Committee have no hesitation in stating that, in their opinion, it is highljf improper, for any of tho officers, to bo in any way connoctod with tho water Ill boon ihai-f^o )'perly ereon, privileges or transport upon tho canal —that thoy ought to be above the suspicion of having any interest to servo, beyond ncso of the canal proprietors, — that some of them have been, and still are, so interest :d, there can bo no doabt." The water discharged from the raoo, sulHcient for three runs of stonc-t, v,'m leased, for £150 per annum, to Mr. (). Pholp:^, a prominent contractor upon tho canal. This Phelps' lease extends to tlio present time, and will be more fully dealt with subsequently. On tho 24th Soplember, 182!), tho Board of Directors resolved that tho mill privileges on tho lino of the canal bo lot for a term of tor. years. Gii^t mills for oa^h run of stones to pay £100 per annum, yot Mr. Phelps' lease was grouted at one-half the rental. In IP3I, tlio flouring mill, known as the " Rod Mill," was erected by Atossrs. W. II. Merritt and O. Pbelps. This ditch, or raceway, was con- Htructed lor thi^s mill, and tho others includod in tho lease of the St. Catharines Water Power Company. Withjreference to the latter, Mr. McKenzio, in his evidence before the Committee, states : — " I mot in the canal ofllce with an indenture having the Company's seal affixed to it, but no other seals nor signatures. It is dated 22nd September, 1834, and I find that of the persons to whom a lease of the St. Catharines water-po.vor is given by virtue of that document, there are of tho company's officers, and persons emploj'od by it, Messrs. John Clark, Thosnas Mcrrit, 11. E. Burns, aiid llobert Suuler- son Tho lease convoys to them, for £125 a j'car, subject to be annulled by the Legislature, the land and premises, with the water-jiowor attached thereto, at St. Catharines, commencing at tho level below Mr. Phelps' saw mill race, down to any part of the level below the hill at St. Catharines where the bridge passes the Hamil- ton Road, with all the wasto water. Tho Canal Company are to do a variety of work for the lessees. Tho rert is only £125, the lease for ten years, and the Canal Com- pany are to pay tho value of t!.o erections in case it declines to renew tho lease. Under this indenture Mr. William Hamilton Merritt is a lessee of water here abo." Mr. Francis Hall was the first engineer who made a report upon *tho WtUand Canal " Hydraulics." This report is dated 24th October, 1835, it EvidancoofFran- was made to the Government Directors of tho Canal, and gives in ci8HaU,o.i.. j^^^j^jj ^jj^ j^jjj ^^^^^ ^1^^^^^ j,j^ jj,^^ ^j. ^j^y Welland Canal. lie Ptates: — " Tho St. Catharines Water Power Company occupy all tho waeto water upon levels Noa. 4, 5," and 6, and with a fall of 22', (J"; also all the wasto water at Lock No. 2i near the summit level ; the water is conducted to tho first series of mills, by an open cut 2|- miles in length, at an expense to the Canal Company of about 80,000 exclusive of land. Tho Water-Powor Company have constructed, at their own expense, three separate races in connection With the Company's race. These valuable and extensive privileges arc possessed by tho Water-Power Company, at a very moderate rale." Before the Select Committee, in I83G, Mr. Hall was asked : — " Do you think that considering the very great expense to the Canal Company, of tho St. Catharines' feeder and temporary arpioduct, tho e.y a y>rofe.-oional gentleman, is in a concral rojiort upon walor-p ov.'or >np)i!iod froni tho canal, made in March, c^ S. IS-LJ, ixluiv the canal pas-el into tiie hands of the Croverumont, and (luring tho enlargctncr.t. iliis ropart io by S. Power, tho Engineer a', in which h " stales : — Evidancr Power, CU of the c; " It i:i I cr'cssaiy foi' mo to direct tlic atlcntion of tho Boai'd t) certain clause'! in the lea.-.o lioM by tiio Hydraulic Company; utmo-t all tho valuab'.o water-power described in Table No. 2, viz. : the surphu walor between old lock No. 2-t an I the village oi St. Cathaiincs is leased, ad ihiis d-.-prives tho Boird of tho power of polling or renling any of the vaUiab'o mill silos which tho recent irapiovcraents have rendered avaihible. The clauses are quoted in an appendix to this letter. The mr.ttor is, of cour.>,e, one for tho cousidvM'ation of the law otlicers of the Byaid. I only intend to point (.ut "iho apjjarcnt diili •ultic, &c., &c." On tho T.>t Jatuiaiy, l-^il, S. Iverfcr, Ei^q., being Engineer of tho canal at that time, vnites to the ."■Jecrotary of tho Board of Works : — Eipdenco cf 3. " It, may bo proper to stato, however, that iho h iso held by tho KwtQt,L.L. Wator Power Company, of St. aiihar.nos, from tho Wolland Canal^ Company, entitles Ihom to 'all the ki;-,>Uis water not required for thci navicatioa of tho canal a'ld for tho Oliver Phelp-V raw mill,' vvhich is to enter into tho hydraulic raco atold lock No. 2-1 atti-.e mounia'P. This is, indeed, an oxtonsiveaad uncuUed for concession, but still liiere are two go ^d and suilicionL rea^ons why tho privilege thus conceded (should not deter tho Board from granting to Mr. Phelps tho power honght for, or from gianling f-inular j)riv(legcs olsowhero along the canal, between the c-aid i?aw mill and old lock No. 24, if called f.T. "i'Vs/,-"That tho saw mill consumoil as jnuch watofias tho flouring mill requires, and, accoidiug to tho terms ff the lease, tho P>o:ud h'.is reserved tho right of using that quantity, at least, of tlte surplus water. " lSecoiul,~ll would bo impracticable to send down the hydraulic ruco all tho surplus water of tho cnhuged canal. 0/ie-balfof that eurplus water would cariy away ovory mcchanicid strueturo on tho Hko of iho raco and destroy it." On tiiO L'Sih jariuary, 1817, Mr. Keefcr, in a general report to tho Commissioner of Public Works upon tho water-powers along tho line of the Weliand Canal, refers, in tho follov.'lng words, to tho St. Catharines Water Power Company : — " Connected with this sul)ject, and a matter eerioudy affecting tho interests of tho Government, I now beg leave to call your attention to tho terms of a leaso given by tho Weliand Canal Company to tho Water Power Company of St. Catharines, dated 28th November 18:34, a copy of whiih is sent for your information. It will bo seen that for a consideration of a yearly rout of £125, tho Water Power Company aro entitled: — ^l| I' 113 " let. To tho frco use of tho surplus w.ilor of Iho canal pas&ing around the thrco old locks, Nos. 4, 5 and 6, (now two locks, Kos. 3 and 4), between Oliver Phelps' giist mill and tho baf*in at St. Catharine's ; " 2nd. To the use of all tho water discharged from tho hydraulic race at Oliver Phelpa' grist mill, which tho Wellaiid Canal Company, at their own oxponso, are to deliver into tho second race on a level with tho tail race of that mill, and " 3rd. To tho uho of all tho surplus water ' not rerjuired for the navigation of the canal, and said mill of Oliver Phelp-j' (now ReynolJts') 'to enter into tho uppoi- race which 'is or may bo conveyed therein near tho mountain in tho township ot Grantham, being immodiatel}- above lock No. 24— now at tho cement mills above lo^'k Xo. 17. Tho duty of keeping tho hydraulic raco and aqueduct in repair falls upon tho Welland Canal Company, and up to the present time the costs far exceed all the rents that have boon paid. A very extensive power has thus boon conceded, and tho Government stands in a position, with reference to tho Water Power Company, wort'O than if this burplu-i water had been given away to them, thus being obliged to continue it, and maintain tho races, at their own expenses; moi'oovor, tho lease is perpetual. A literal interpretation of its terms would give to tho Water Power Company all the surplus water from the head of now lock No. 17 to tho level below nosy lock No. 3, comprehending a fall of 189 feet, distributed over a distance of 3.^- miles, and a power equal to that of hordes, excepting that thero is reserved tu tho Welland Canal Company tho uso of as much water as would propel tho said mill of Oliver Phelps, situated at lock No. T (now No. 5), but oven this exception has been contostod, on the ground that it has reference only to that mill while in existence, and that when it was done away with, tho water which propelled it reverted to the Water Power Company. If this contention could be adn ' ted, then, by a ]):uity of reasoning, when tho old lock, No. 24, was douo away wiiu, tho Water L\)wer Company were no longer entitled to any water from thence. It may, therefore, bo concluded that tho Government can, with propriety, sell at least one jirivilcgc, equal to the power of tho said mill, at each of tho intervening locks; but wlien it is considered that tho raco is incapable of taking away all tho surplus watci-, and that tho Water Power Com- pany have no right to any water but what enters into tho raco, it appears conclusive that it raay all bo luascd, so long a>^ thero is no lack of a supply in the raco. Now, wo discover an incongruity in tho conditions of tho loaso which rondera a literal construction incirectiial. Tho capacity of tho rac3, and particularly of the aquoJact, is not BufScient to convoy more than one-quartor of the surp'us wat'n*, now that tho canal bus been enlarged, and to discha'.go into it all the fuiiphis, would cause its destruction. Start- ing from tho mountain, tho raco pussoi over a doop clay soil, and tho fall being very rapid at tho beginning, it has been lound necessary to check tho velocity of tho current by a series of waste wiers, which are subject to frequent derangement, and have I'opoatcdly boon nndormincd and can-iod off. The strong current has excavated deep gullies in tho soil, and if this action is not further abated by tho orectiuu cf more weirs, the evil will grow to an alarming height, and ultimately endanger tho safety of tho canal itself. Thero never was any necessity for taking tho water out of tho canal so high up tho mountain. It would h.^vo answered tho purpose just as well, and better, to take tho supply fiom tho canal at Centrevillo, above lock No. 11, and thus avoid tho inconvenience of a fall of IG^ feet, and tho expense of making and maintaining tho worst part of tho raco. My object in going into these details, is not by any means to censure those who wore concerned in granting tho lea.sos. Far from it. Perhaps, under existing circumstances, it was tho best thing could bo done to givo a start to those manufac- tories which have proved so beneficial. 13ut I have dono so with a view to pointing out tho expediency of having tho loaso altered, bo that the Water Power Company may be supplied from tho lower level at new lock No. 11. To this change they can scarcely i-aiee any objection, and then tho question, as to the right of tho Govern- 114 mcnt to tho uso of tho surplus water abovo that point, can ontiroly and fovovor bo eot at rost." Ill 1850, tho lion. II. II. Killaly being Siipcrintondent and Engineer of tho Canal, tho period of tho old leases on tho Welland Canal having Evid^nofi of the expired some time provionsly, and tho hj'draulics of Iho canal rcquir- En^neor &."iiapeT- ing to bc placed on a businc's footing, ho sent to tho Board ofWorks intendontofCaual. a li-t of all the mill sites, -with memoranda and refoi-encos to each. Upon this Icapo his memorandum etfilo.s: — "These conc'orns nro all ui>. 'or the St, Calhaiiiics ITydraullo Puwer Comi>any, who pay to tho Department tho annual rent of £125, lor tho entire. Woro tho machinery, now in operation under it, to pny at the rates fixed by tho luto Order in Council, the aggregato rent would bo £.J25 per annuni; the present ront by no means covers tho cof.t of repairing and maintaining the hydraulic rac3." Suillcicnt ovidonco has boon cited to ahow tho character and results of tho lease frovn the Wollarid Canal Company. Evidence will now bo adduced, pertaining to tho granting of the present lease. In May, 1847, an indenture was di-awn up between tho nominal holders of tho lease fi'ora the Welland Canal Comjiiny, ai;d four oLhcrH, which reads: — "TIic;-c parties of tholirst part.foi- and in ronsidorationof the sum of five shillings, (the amount of tl>.o capital of tho said Water Power Company, £2!)3 IO5. consisting of 30 shares at £7 lO.s. {-or share) to tliem in hatid paid by the p:irties of tho sec >nd y^art, at ami bvdbro the sealing and delivery hereof, tho receipt whereof they do hereby .'icknowiedge, have and each of tlicia h.ith remised, I'olrasod and forever ijuit claim ui:!o tiio said \V. li. Merritt 17 sharc->, lion. Peter MoUill l2 shares, Joiin Gibson 5 shares, K S, Adains 5 siiares, making iu all 30 shares of tho said purcel or tract of land, premises, water po^ver, together with all an 1 singular the building, and appurton.inoos thereunto, belonging and the iviits iiaic.^ and profits thereof." On the 19th November, 1S50, Mr. Kilia'y writes to the Secretary of tho B jard of Works as follows: — "Tho daily increasing demand for surplus water on tho lino of this canal, and cost of maintaining tho laco by which tho water is furnishegothcr with the very indofinito terras of tho deed by which tho water is granted and held by tho Water Power Compan}', render it most desirable that a now ariangorncnt should at once bo made veith tho Company, by which tho respective rights of the Company should bo distinctly defined. llerotoforo and at present, the Company, by tho indenture of the 28th November, 1834, is 0.1 titled to have all tho water not required for the canal or navigation pur- K OSes sent, down through tho hydraulic race fiom tlio head of old lock No. 24, or ead of now lock No. 17. Tbo water so passing from this levol through a purely clayey soil, has made tremendous excavations, and in somo places jeopardises tho safety of tho canal. It is evident, thereforo, that it is most desirable to get rid of as much of this hydraulic race and its maintenance as can possibly be done without interfering with the rights of the St. Catharines Water Power Company. The first mill established bolowlockNo 17,is supplied from tho hoed of lock No 10. I propose that a new understanding be had with St. Catharines Water Power Com- pany, and when eventually agreed to, that the present deed be cancelled and a new one entered into, by which their right, or supposed right to all tho surplus water from the present lock, No. 10, down to the tail of lock No. 3, be establisliod, saving and using only tho water-power at lock No. 5, fuQlcient for t%vo saws, lately purchased back by tho Department, and now leased under the authority of the late Order in Council, and that tho surplus water, instead of being as now, turned into the hydraulic ditch referred to, at tho head of lock No. 17, shall bo turned into it at the head of locks Nos. 10, 11, ri, as may be found most expedient, and thai, tho said St. Catharines Water Power Company waive, and yield up, all claims whatsoever to the use of any surplus water from Lock No 10, to tho head of old Lock No 24. 115 or bo eot • of tho having vl rcqulr- )f Works to each. omi'iany, ^010 tho )idor ill it by no :t8 of tho Di-tuining a of tho phlllings, onsislirig 10 Bcc:>nd they do 3vcr quit 63, Juhri )urcel oi- ling, and 10 Bjard mal, and for its erras of ompan}'', with tlio istinctly ovombcr, on pur- 24, or a purely iscs tho of this [iiig with k No 10. ?cr Com- a now 13 wator ving and urchascd 3rdor in into tho it at tho said St. or to tho The advantages to the Department by this arrangement would bo, that a con- siderable length of tho hydraulic ditch would bo got rid of, and its sole and undis- puted right to the use or letting of the water from 1 ock No. 10 upwards, would be clearly established. With the view of effecting such an arrangement, so very desirable in the interests of the canal, as it appears to me, I have had communication with Mr. Gib- son, the President of the St. Catharinos WatorPowor Company, fnd I hereby enclose a memorandum of agrcoment, which that gentleman, after consulting with the parties interested, is willing to subscribe to, should it raoet the approbation of the Depart- ment. I respectfully request that I may be favored with the decision of the Commis- sioners which it is important should bo as noon as due consideration and their convenience will admit of, as some preparation must be made for turning the water from the canal at lock No. 12, before tho winter sets in. *' In case the Commissioners should choose adopting the arrangements proposed, 1 would have a rough draft of the necessary deed made out and submitted for their approval . On the 9th January, 1851, the Secretary of tho Board of Works solicits the opinion of the Hon. Attorney-General, on tho salient points of the lease of 1834, in the following letter : — "I have the honor to transmit, herewith, by the direction of the Commissioners, a copy of lease passed in the year 1834, between the Welland Canal Company and tho St. Catharines Hydraulic Company, for your consideration and opinion upon the points hereinafter specified. A plan is likewise sent, showing the position of the locks, &c., as well as a section to show the mode of taking the water through the racewi y from above 1 )ck No. 24 of the old cnnal. Tho lease roferroii to grants " all the waste wator not required for the canal, whi h is now or lu .y hereafter be disehaigod from the upper level or race above 01i\ n* Phelps' mill." Also, "all the land in tho vilhigo of 8t. Catharines," as desc'ibod in portion which extends above lock N). 4. Tho loaso also states, that tho said Welland Canal Company do further bind themselves to allow tho free passage of all luo surplus water not required for tho navigati(m of tho ciinal, and tho saw mill ot Oliver Phelps, to enor into tho upper race, whi'h is or may bo conveyed therein, nea • the mountain in t'le township of Grantham, being immediately above lock No. 24. At tho period w!i in tho lease above referred to was passed, 1834, tho Hydraulic Conipauy could not h;vo anticipated any further increase in tho quantity of water thai! the old canal wo Id attbrd. But the canal having been reconstructed on a plan which gave fully thrt.) times the surplus wator that the old canal could possibly have Slip li«l, tho Commis tionors wish for your Ojiinion as to whether the '.Tovornment la b'uud to give the Hy'.raulic Company the benefits of tho whole quantity which can now be afforded, and whether the extra two thirds can bo legally disposed of to other parties. The waste water which now delivei-ed into the race-way above lock No. 17, (No. 24 of the old canal), is only available on the Hydraulic f/ompany's property, at the level of lock No. 11. The ground betwoon these two locks, on which there is a fall of 72 feet, ii of such a nature that it wiil not admit of carrying the water through tho raceway at the level of lock No. 17, or of bringing it to tho Company's mills at a 1 igher level than lock No. 11, as tho fall, between those two locks, is great, (12 loot), the distance short, and the declivity in tho raceway considoiable, the extra quantity of wator passing through it, very much endangers tho safety of the canal. I have, therefore, to enquire whether tho Government can take the water into the raceway at lock No. 11, instead of lock No. 17, provided that the power, either in the head or fall, or in the quantity of water supplied, is not in any way diminished, or the Company put to any extra expeu.se. Supposing that the water can bo taken into tho hydraulic race at lock No. 11, instead of lock No. 17, can the Government make it available around the intervening 9 I lU locks, Nob. 12, 13, 14, 15 and 16, nnd lot it off to other parties ior the purpose of inci-eas- ing canal revenue ?" The opinion of the Attorney-General, in reply to the above enquiries, I have not been able to disdover. The authority of the Secretary for Hubmitting the enquirien to the law officer of the Crown, is found in the minutes of the meeting of the Board on the 7th January, 1861, as follows: — " Hon. Mr. iMerrltt present : The Secretary was directed to transmit to the Attorney-General, the lease of the St. Catliiirines Hydraulic Company, with a plan of the raceway by which the water is now supplied to the Company, and to request his opinion on the points Hpcciticd in the draft now submitted." On the 14th May, 18i»l, a lease was executed with this Company by the Hon. Messrs. Burrctt and Kiilaly, as Commissioners, but this lease never Prefient leaae ex- leceived the sanction of the Council . From the foregoing evidence, it is seen, that under the old lease, the Company had all the water in this race, discharged from the mill of Mr. Phelps, and a part of the surplus water of three levels upon the old canal, equal to two levels upon the new. By the present lease, they receive the water upon seven levels of a canal of much larger capacity, a greater quantity of surplus water, together with an increased flow through the race, for the same rent as paid under the old lease, viz. : £125, and this in the face of opinions contained in the reports of three successive and previous Engineers of the canal, viz. : the report of the Hon. H. H. Kiilaly, in the previous year, in which he says, as hereinbefore quoted : — " The rent should be, if paid at the rates stated by an Order in Council, £325" ; the report of Mr. Keefer, in 1847 ; the report of Mr. Power, in 1846 ; the report of the Superintendent of the canal in 1837, together with the evidence of Mr. Hall, before the Select Committee, in 1836, wherein he states the rent paid bj the Water Power Company, to be less than the interest upon the first cost of construction of the hydraulic race, conse- quently a portion of the cost for maintenance and repairs was a direct tax ujjon the canal, while nothing was paid by the Company for the value of the mill seats and water power. The original cost of this raceway has been shown by the estimate of Mr. Hall, but does not appear in the Welland Canal books, as the minutes of the Board directed, — " That it must not be paid out of the present funds," hence its cost remains indefinite. What this lease cost the country has 1o be determined. Take the original coat of the race as given by Mr. Hall, — $6,000. *v^^?^^^J^"-8 '°' The Government re-built the aqueduct in 1843 or '4t. lam the St. Catharines ii x i. • ^u ^ j-^ • n • i a Water-Power Co. unable to ascertain the exact expenditure m this case, but approxi- mately, it was $1,500. Although an agreement was made upon the 22nd Deccmbar, 1829, between the Welland Canal Company and freeholders of lands at St. Cuiharines and vicinity, to allow the Company to cut a raceway through their lands, not more than 20 feet wide, an agreement which would appear binding, — but the legal question must have been considered at that date. In reference to this agreement, Mr. Kiilaly writes to the Commissioner of Public Works, the Hon. W. H. Merritt, under date of 19th Novem- ber, 1850, the following : — " Several parts of the embankment of the hydraulic race, the maintaining of which rests with the Department, require raising and strengthening. I have taken every pains to ascertain the nature of the condition and authority under which this ditch was originally made, and, as far as I have been able to learn, the then pro- prietors of the soil bind themselves by an instrument to allow the water to be passed through their latids through which the drain was to pass. The land has now passed into the hands of several other parties who positively refuse to allow it to be cut or interfered with, lor the making up and strengthening of the banks of the ditch when necessary. Under these circumstances I had the land visited by the Arbitrators lately, with a view of their putting a reasonable value on it, and I now suggest the propriety of my being authorized to mark out a atrip along the race, and to make m inci-eas- ave not iquirieH e Board ; to tlio a plan requeul he lion. never >1(1 lease, Phelps, vo levels vols of a with an 180, viz. : accjpsive illaly, in )uld be, if ieefei', in the canal iramittee, to be less ;e, oonse- upon the seats and Mr. Hall, he Board e its cost lal cost of :t. lam approxi- tween the •inity, to tbet wide, lave been ites to the th Novem- ilaining of avo taken which this then pro- be passed low passed be cut or ditch when Arbitrators luggefct the id to make the rospeotivo parties an oflfer, based upon the valuation of the Arbitrators, which may save delay or any further reference to arbitration in most case-j." In this case I find that the award of the Arbitrators for land amounted to $4,185.60. The outlet from the canal at the head of this raceway being changed, a new supply weir was built at a cost of $2,632, and other works, the cost of which is indelinite. In 1861 another aqueduct was built at a cost of Home $1,500. It is impossible to arrive at nome of these expenditures accurately, and equally impossible to arrive at expenditures for yearly repairs and maintenance, aa no separate account is kept for expenditure upon this raceway, but is charged to the maintenance of the canal. It is only by looking over a number of papers, estimates, &c , that an idea can be formed. Some of these papers show the Government were doing, if it were done, the work which the lease provides the Lessees shall do, For instance, I find a sheet of cross sections with some 6,795 cubic yards of excavation for raising the embankment of the Morritt race. The wooden aquec ict was expensive to maintain j it had a life of some 18 years, whily the life of the b( x or flume was still shorter. Breaches were being continually made in the banks, which had to be repaired. The race had to be cleared out every second year. Men had to be employed, during winter, to keep the canal clear of ice; one man was so employed continuously, for four montlis in winter, at $38 per month, or $152 for the season, and during the prevalence of cold periods six to eight men won so employed, The clearing out of the raceway every second year cost some $8(10 These items do Mot include the additional expense of maintenance of the seven levels upon the canal, ;ranted in the lease. As an example of yearly expenditure in connection with the raceway, the following quotation is taken from the Keport of the Superintendent o the Canal for 1881, which is a fair specimen of the yearly average : — " HYDRAULIC RACE AND AQUEDUCT." '' Two dwcirf stone dams put in to check scouring of banks. " Bottom renewed and side of aqueduct flume repaired and caulked. " Supporting bents and frame of flume jjieced out and repaired. " Ice kept clear, night and day. from aqueduct to Red Mill, " Seventy-five feet of dry stone retaining walls built on each side of Thorold road bridge. " Stone abutment of aqueduct repaired, portable float made for repairing uses. " Stringers of farm crossing bridge, 35-0 x 12-0, renewed and nowly planked. New bridge built at head of aqueduct, 650 x 12'0. " Barbed wire fence and iron posts put up in parts of race to keep off cattle." From the Water Power Company and the Phelps' lease only $350 as propor- tioned subsequently, are received, or not sufficient to pay for men's wages in clearing the race and keeping it free from ice in winter. In addition to this, Is the large expense of keeping the aqueduct and the banks in repair. If we take $15,000 as the capital which was invested in this race, and take 10 per cent, for interest, repaii's and maintenance, adding the cost of clearing out, $500 per year, together with the wages of men looking atler the race in winter, wo have a yearly outlay of $2,000 for which the country has received only $350, leaving a balanceof $1,650 which the tax-payers wore contributing, annuall}^ to the Water Power Company and the Lessee of Phelps' mill, in addition to which the country receives nothing for ground rent of mill sites, or the watorused for power. One of their principal Lessees keeps in repair his own race, and the Company have the maintenance of only two small raceways, they have not been engaged in advancing the manufacturing industries of the country, but in the receipt "of the difference between $500.00 and the amount paid them by their Lessees. II is seen from the indenture of May, 1847, when Messrs. W. H. Merritt, Peter McGrill, John Gibson, and E. S. Adams for the sum of five shillings received the 9i 118 roloiiHo and quit cliiim of this property, their capital wan only $1,170. It is therefor© evident, that with this amall capital, little wan intended to bo done to develop the water power. It is necessary to investigate the rightH of the Company in detail. As before quoted, with reference to the original loane from the Welland (^annl Company, Mr. W. Lyon McKenzio states: —" 1 met in the canal office an indenture having the Company's seal affixed, but no other seals or signature." I have found, in the Wolland Canal Office, an indenture with the seal of the Company affixed, signed by the President of the Company, Mr. W. H. Merritt, and witnessed, but with the seal and sigiuiture of the President erased. The lease granted that ail the surplus water not required for navigation, except the quantity rc.|uiiod for a saw-mill, should bo discharged into the raceway, convey- ing also to the Company the land and surplus water of three levels. The race was supplied from level No. 24 of the old canal, the saw-mill was upon level No. 7, and the three levels leased wore Nos. 4, 5, 6. If these conditions were observed, it is evident that between level No. 24 and level No. 7, all the surplus water running would bo the amount required for the saw-mill. When the Government or\largod the canal, the conditions were changed, level No. 24 became level No. 17, levels Nos. 4, 5 and b* became levels No.s. 3 and 4, and the supply of water, available far mill purposes, was largely increased. Mr. Keefer, in his Report for 1847, states: — " The capacity of the race is not sufficient to carry more than one quarter of the surplus water luiining since the canal is enlarged." I deal with matters which might be considered to have been settled by the lease of 1851, it being ultra virus the rights of the company as shown subsequently are to be determined by the original indenture. On a question of principle, upon the former enlargement, the conditions are something similar to the present oulargoment. As before quoted, Hon. W. II. Merritt directed the Secretary of the Board of Works to obtain the Attorney-General's opinion upon certain points as to the rights Cin- veyed by original lease, an opinion which, whether given or not, I have been unable to tind. When the Government assumed control of the canal they changed its character in every respect, — levels diflerent, the supply of water greater, it would appear reasonable that this lease was entitled to draw through the raceway, the same quantity of water as before the canal was enlarged, and use upon levels Nos. 3 and 4 the amount of water discharged through the wheels of the mill for which water was granted. From the great declivity of the race, the condition of which was seen by Mr. Koefer s report, it was necessary to change its junction with the canal some distance further down to lock No. 11. Some claim musl have been made to the surplus water botweou locks Nos. 11 and 17, for there is an indenture in which the Hon. W. II. Merritt and other parties mentioned in the indenture of 1847 " assigned their right, title and interest in and to the use of any and every portion of surplus water above the head of lock No. 11." This indenture is dated a short time previous to the lease of tho 14th May, 1851, which is to the same parties, excepting W. H. Merritt, jun., who is substituted for the Hon. W. H. Merritt. This lease gave the Company all the surplus water and land upon tho enlarged canal from the head of lock No. 2 to the head of lock No. 11, with some exceptions, and all the water that the race and aqueduct was capable of conveying. By the old lease they had flowing through the race much less water, than by the new, (according to Mr. Keefer), they had.the land, also the water which came through tho wheel of a saw mill at levels Nos. 3 and 4. The new lease granted them a larger quantity through the I'ace, and in addition the land and treble the amount of water upon eight levels of the new caaal, for tho same rent as formerly paid, notwithstand- ing the reports of the Engineers as to the expense of maintaining the race, and that the lion. H. H. Killaly had stated the year before, that tho rent was only about one-third of what otheis were paying, and not sufficient for maintenance of tho race. The term of this lease expired ten years ago. By its stipulation there is no provision for increase of rent. The Government has covenanted, in the event of non- 119 renewal of this lease, to pay for all racowayH, otoctionH, machinery, &c., that have boon constructor by the Cornpiiriy or iu tonantu. The siib-losHeui wouli], no doubt, prefer the Governmoiit to the llydriuilic C()mf)any as losnors, and in Iho event of non- renewal, if the Government as^rood to Kupply thum with water, would make no claim against the VVutor Power Company for oxponso of oreotions. In this case, the Gov- oriimont would require to pay only a very smiill sum to tho Company, they (the Gov- ernment) would assume control of the lands and water and obtain a fair equivalent for the expenditure necessary to supply these mills. In the foregoing, with regard to the lease of tho St. Catharines Water Power Company, I have not referred to the lease of Calvin Phelps, but in ho Lease to Calvin fuj. n^ tho ^jvter flowing through tho raco-way is concerned. This lease is jointly responsible for all expenditure upon the race, and should bear equally tho burden of its maintonanoo. Under the Welland Canal Com- pany thoro appears originally to have boon no lease for the water power to this mill, out when tho sale was made to the Hydraulic Company he became their lessee. In a letter to the Directors of the Welland Canal Company, after the re-purchase, ho says : — " It was agreed on by and between Mr. Yates and myself, whon I sold him land for h3'draulic erections, that I should have a permanent lease for three runs of stones for 8 1, -,0." As ho used only two runs and wished to put in an extra run, he bogs to bo informed what the Directors will charge. In 1837, a loaso was given to Mr. O. Phelps for ten years, dating from 18:52, for three runs, at a rental of $150 por annum. In this lensis there is a clause providing for an increase of rent at the expiration of the term of tho lease. In 1843, Mr. Calvin Phelps writes to tho Secretary of the Board of Works stating he intends purchasing tho mill owned by his father, and wishes to ascertain whether tho mill race, aqueduct, &c., «&c., conveying tho water-power, from the mountain to this place, will bo kept up and in repair. That the mill has five runs of stones. Ho inquires on what terms por year will the water be supplied to the mill, for throe or five runs, and the race bo kept up ? Mr. Killaly in his memorandum, written previous to the execution of the pre- sent lease, says of tho " Merchant Grist Mill, Mr. C. Phelps, proprietor " : — " Mr. Phelps has a lease at £37 lOs. per annum, but he has added, since the date of it, three runs of stones, and should now pa}' £77 10s. per annum." On tho Kith Juno, 1851, a lease was granted, which did not receive the authority of Council, to Calvin Phelps in which water power was granted for six runs of stones for £37 10s, per annum. In this lease no provision was made for an increase of rent, and it contains a clause not found in any other lease of water power apon tho canals, viz : — " This lease and everything herein contained shall revive and be revived for another like period of twenty-one years immediately thereafter, and so on from one period of twenty-one years to another, for four hundred and eighty-threo years from the first day of January last past. " The loaso to tho "Water Power Company provides for its cancellation by purchase of the property. Other leases, granted at the samo time, provide for increase of rent and the lessees are charged double what this lessee is. This lease has no provision for cancelling, but the country is bound to renew it for four hundred and eighty-threo years, and also bound to maintain the race and aqueduct for that period. Wo find Mr. O. Phelps had a ton years lease for three runs of stones, the lease containing a clause providing for increase of rent. His son, by tho letter above quoted, must have had his doubts (evidently aware of the oxpen-y Act 14 and 16 Victoria, and pon tho 2 'nd April, 1851, did purchase of the Government certain lands, on !ho line of the Wolland <'anal, in all amounting in value to £-',113 lis. 3d., with the undeiitanding and under tho express condition (see deed) that they the parties therein named would form themselves into a Company with a capital of £50,000, to bo loaned to parties desirous of erecting mills or manufactories on the Welland Canal." Now, first, as to the land which thoy socnred at a nominal nrioe, we believe that furthoi- than iirsl iustahneno nottiiuii has boon piid ; in proof of this we beg to refer you to a report of the Suporinteiidont of tho Wolland Canal, 1864, wherein he says that the arrears in land sold Benson and others, in behalf of the Welland Canal Loan Company, have been accumulating for over a period of ten years, and during which time no payments have been made, &c , &c. Now, the result of this nominal ownership by Bjnaon and others of those valu- able lands, is 1st, the total withdrawal of said land'* from the market except upon terms and conditions that parties willing to buy and pay cannot submit to (and will not. ^nd, tho known fact of such an irresponsible monopoly of all the available lands in that iieighborho'il, prevents capitalists from building mills or maBufactories in that neighborhood. Wo could give two or thx'oo instances where large capitalists have been driven from investing and taking advantage of the large surplus water power, fiom impossibility of obtaining room f)r cottages: but note our own case. Wo employ about a hun ired operative-, have invested over $80,000 in a cotton mill, and offered this ( Company 87,000 in cash for a few acres, and were met with an indignant refusal, lionco we are cramped for space for a few cottages, having to build on road reserves, &c. ; although Wo offered them more than double what they only promised to pay for it, certainly much more than its worth, it may bo said they have 126 mne, what lontrol the orks, Mr. rraa urged 'i logos to a ny duty to behalf of a lower ; and ht into use ,n, by cora- Tood policy has proved at varir.r.<.) Canal Cor i- ^, which for prevent the afford to sell t'er taking a jarty, whose wor." jectH of their Department water- power 3 th January, he matter of xt 14 and 15 ment certain ,113 Us. 3d., that they the 1 a capital of ^ories on the believe that g to refer you he sayrt that _ Canal Loan during which )f those valu- oxcept upon to (and will tho available manufactorieB jre capitalints surplus water ur own case, a cotton mill, met with an aving to build lat they only said they have a right to charge their own price for the lands. Wo admit this so loi '^ as they comply with the termw of their charter. Next, as to tlioir chart 'r emjiow ring them to loan moneys, &c., this is only a farce or a cloak to ohtain and retain thv lands at a nominal figure. They neither loaned or had it to loan, instead of oncoui-n ing mills, &c , they have been a curse to that locality. To give them an opportuniy to loan we addressed them the accompanying letter to which we have the short ri'ply that it would be submitted to the Board at its next meeting. Wo can tr.ice no c^'idonce of there having been a meeting for the last ten years. The truth is', the whoo affair haa been a speculative job, and we believe that in law and equity they havo i >rfoited all claim to these lands, and we pray that the Government willwubmit the c.ao to the Law Officers of the Crown, repossess the hinds and put the sami) up to ( nipetitioi. We have had their charter, dted, &c., before our owi> ^•olicitors, and they igrce with above views. Wc have only stated the loading fraiiuTs in thti case, biit we trust enough to satisfy the Government to Older an investigut ion, and we bog further to add that we havo only stated what we are pieparcd to prove befoio u y court or tribunal. The second letter is dated 23rd May, 1865, three months after the I'ate of the first, which reads : — " We would beg to state in addition to the memorandun, tint our chnif difficulty with the Company has been the impossibility of obtaining ar v biiildini!; 1. ad for our operatives, now numitering over (100) one hundr.'d, anil nov -' ttoreu o. oi a radius of two miles. We at various times made th( m overturns to ; u.i 'asea -ni.-ll qnaniiiy for building purposes, the last offer made them w;is (87,000) «(!> n th^usji id dollar h, double its first value, an ! were Hiniply met hy a r 'fusal to se I. This wa<- for a small portion of that land bought of the Governnn'nt ^t £1M per iici i, or aL' ei'i to he booijht al that, and which iias never boon paid for, nor any of tK' con'Ul' ti.'j of sale comp'ied with. Had the (ondit ions Iwen enforced, that projiei-ty today .voiild nv)t be occupied by a f'ow squatters. " Xex', wo complain and appeal to the Government on -aiblic ,"r( mis. We believe it unfair atid unjust to the country that aw ineNponsiid , ompniiy of two or three speculators nhould, { eromptorily and at will, he permiuloo u) lock x.], thrt public domain to the detriment o all puldic interests and ptivato eniorpriHo, i 3fu- ing 'o pay, sell, or let. We now leave the matter in your hi;nds, bolic-ing the Govoiument have the power as well as ihe desire to do justly in the premises," In a report upon the L^achine Canal, the history and the results arif-i'ig from a water-power company nituuted upon that canal are given. Thi-* cmf'irtii(^s a state- ment of all the companies that have existed upon the canals; the fact, connected with which must render obvious the inexpediency and direct loss occii.-ioned by the alienation from the control of the Govertiment, of the surplus land and water along the line of the canals. These Companies having been able to obtuir. concessions private individuals were unable to acquire, never accomplished the objects they sot forth, but merely acted as middlemen, receiving, for their personal beiiefit, the differ- ence between the amount paid the Government and that paid them by sub-lessees, without rendei'ing a.iy adequate return. Action to be taken upon present leases. As the greater proportion of the leases havo passed the period of renewal, some action will shortly bo taken. The quantity of water usoil, determined by the measurement of wheels, apertures, &c., must nocessirily bo approximate. This approximate calculation, together with the chns of walor-motori in use, and other data, which will show how far the power is being off' ctnally utilize^!, is riven in an appendix. The leases may be divided into three classes, viz : — 1st. Leases to private individuals who use little water above what is leased, and pay a fair rent according to prices determined by Order in Coui.cil. Mi 126 mM ';iii| 2nd, Leases lo private individuals which have fallen into the hands of manu- facturing companies, who use a much larger qnantily of water than leased, and pay nothing for this excess. 3rd. Companiew or individuals who have control of all the land and water at several locks without any definite amount of power specified, and pay little for the concession. By inhpeciioi, of the appendix the first two classes can be readily determined, in renewals of lea-^os they should pay for the jiowei used, and be compelled to put in good water wheels. The third class may bn especially referred to, on account of the great iiioqualil y between the price paid and Iho powoi- nsed. Wo have til Si, the St. Catharines Water Power Company. The approximate capacity of di;-i.harge fi'om the water wheol-i would give a power of some 1,000 horses, at 75 poi* cent, fov useful effect. The principle affecting the leasing of water, quantity of watoi*, or amount of power, to a run of stoiies, and other facts connected therewith, having boon s ated in a report u[)on tho Luchino Canal, it is unnecessary to refei- again ui what may bo considered sottl''d questions. Of the ipii-oximate amount of power used by the St. Catharines Water Power Company, 532 ..orse power is utilized upon the hydraulic races. The wliolo of this power is not si i)plied from tho race maintained by the Government, as he water in the lower race, upon which tho flouring mills of Mr. Norris are situated, is supple- mented by a s'.,))ily trom the level of the canal above his race. Allow 400 horse power, as tho i.aount, to be effectually utilized, between the level of tho upper race and level No. 2 of the Canal, by tho St. Catharines Water Power Company, wo have this amount as the proportion to bo charged for the maintenance of the raceway. Mr. Neolon, who has acquired the Pholp's lease, notwithstanding the heavy expendi- ture required to maintain the race, has two antiquated overshot wheels which use double tho water he is entitled to by the terms of his Ie.ise. Ho is using some 130 hoi'.se-power, while his lease entitles hiia (o 60 horse-power. His lease grants the right to use six runs of stones ; there arc seven in his mil!. He has also sub-leased 10 horse-power to Mr. Abell without any right or title, as the maximum of the water, flowing through, he is entitled lo, is to drive six runs of stones, under a head of 22 feet. The rent received from this sub-lease belongs to the Government, and action might be brought to I'ocover the amount received from it. There is, in addition to 400 horse-powor, chargeable to the St. Catharines Water Power Company, 60 horse-power leased to C. Phelps, Cnow Neelon), contributing to the maintenance of the raceway. The cost of maintaining the race has been pre- viously shown, but upon the cancelling or renewal of these lenses we have another condition of things. The wooden aqueduct, which wn-! exponsivo to maintain, has been lately replaced by an aquodnct with stono foii!il;>iii)'i Mid iron superstructure, with a wuodtin box or flume for carrying tiie water, uL a cost of some $1^2,000; this aquedui should, with the interest upon its first cost, together with painting, repairs, &c., be ciiarged at least 10 per cent., or $1,200 per year. In round numbers $4,000 was paid for the land, which at 6 per cent, would be 8240 per annum. The supply weirs and head gates costing, say $3,000, at 10 per cent, or $300 per annum, and taking the small estimate of the raceway at $5,000, which, for the great expense of its maintenance, should give at least 20 per cent, or $1,000 per annum, wo have, therefore, an annual cost to the country, for purely hydraulic pui-poses, without the slightest connection with navigation, a total amount of 82,740. Taking $200 as tho proportion of rent paid by the Hydraulic Company, chargeable to tho raceway, and the rent of $150 from Phelps' lease, would give a total of $350, or an annual loss to the country of $2,390. It remains to be decided whether these leases are fo be main- tained at this diroct yearly loss, and, in addition, nothing paid for the water. I should recommend that the lease to the St. Catharines Water Power Company be cancelled, that tho water, the upper race will discharge, be lo.nsod to .VIr. Neelonor other parties, and the water flowing in the second race be charged lo the mills situated between it and the lower race of Mr. Norris, — that the water flowing in tho lower race be c'liargod 'o Mr. Norris who could lease directly from tho Government, — that m^ 12*1 of manu- sd, and pay id water at ittle for the ietormined, ed to put in 3ount of the nproximate some 1,000 ng of water, ts connected unnecessary Tatev Power lolo of this he water in )d, in supple- ' 400 horse D upper race my, wo have he raceway. ivy expendi- la which use s ubing some He grants the so sub-leased of the water, I head of 22 , and action arines Water itributing to las been pre- lave another iiaintain, has lerstructure, $12,000; this ting, repairs, liibors S4,000 The supply jinnura, and ( expense of , wo have, without the ; $200 as the .■acoway, and mnual loss to •0 to bomain- irater. vox- Company Mr. Noelon or mills situated n the lower nmcnt, — thftt the mill sites and water-powers now sub-leased, upon eight levels of the canal, by the St. Catharine's Water- Power Company, be leased directly by the Government under a new system, if such bo adopted. With regard to the Phelps' lease, such action should be taken as that it should bear its proportion of the cost of t lie raceway, and pay the value of the power used, and that this })0(uliar leane of nearly 500 years should, if possible, be annulled. Messrs. Gordon and McKay have leased to them the water at throe locks. In another report I have dealt with the value of the power in the manufacture of cotton. Their power is costing thorn slightly over one dollar (81) per horse power. John Kiordon has leased the water from locks Nob. IT to 21, and is engaged in the manufacture of paper. He obtains power at some 50 cents per horse power, — this value includes mill site. I'he prices paid are extremely low and are equivalent to a protection in favor of the , mills u;joii the canals, against those situated elsewhere, requiring a large sum of money t'^ be expended in obtaining power. The Lincol!) paper mills, manufaoturincr paper, are situated upon the hydraulic race, near its exit from the oanal. This mill has no lease, nor hp.s paid any rent since its crecli>n. In 1878, Mr. S. Neolon made application for damming the hydraulic race and for the u^e of the water flowing through the raceway. This was granted upon certain conditions, a lease was drawn up but not submitted to Council and remains unsigned. The rent was to bo $100 per annum, as this mill is using some 14'i horse-power, this rent would give some 70 cents per horao-powor per annum. This priff was, no doubt, ba^od upon the low prices fixed for the concession to Messrs. Gordon & McKay, and Mr. Rioidon. It will be seen by reference to Appendix, that the Welland Valo Manufacturing Oompaiy, the saw mill of Mcleary & McLean, the saw mill of John McDonough, the flour mills of Howland & Co., the Thorold Wood Pulp Co , and tho cement mill of John Battle, are using much more power than leased. Upon the main lino of the canal, there are a number of good water-whoolsof the turbine class, and a nunibrr that aro groat wasters of power. Tliore are six wooden overshot wheels which should be replaced by a more modorr Lype. The tail races, in maiy in-tances, have not suiScient depth underneath tlio ''heels, thereby, preventing ho free discharge of the water and caunny loss of powo]' There are a number oft :tw mills on this canal, which, if the rents wei'o placed h.ifiiciently high, would probably give pl.'ice to other manufactories of more benefit lo the community. Tho mills at Dunnvillo, upon the Grand Kiver and upon the feeder, call for special attention. Some of those at Dunnvillo have bad flumes, with tho most inferior de^-'Cription of water wheels, which is unfaij- to othort it the same place, having economical turbines, — this is especially felt when tho water supply is low. Proposed Scheme for Enlarged Canal. The full power of the enlarged canal cannot be utilized until tho completion of the now aqueduct. The present aquciuct has, at some periods, a current of three foot per second, not caused by tho wa'er flowing to the mills, but by tho fluctuations of Lake Erie. The head gates not being in position, at the head of tho canal there is no standai-d level of the upper roach maintained. This makes the roach, what may be called, a tidal ann of the lalce, rising, and falling, according to tho direction of the winds. The section of tho aqueduct being small, any increased upply for water- power combined with the current I'roni the lake might be prejudi' ial to navigation. An extended leasing of the water-power upon this canal must bo postponed until the new aqueduct is completed. The old, and new lines of can.al, provide two channels by which the fall, between Lake lilrie level and the level of Lake Ontario, can be utilized for jower. There are at present some 4,000 II. 1^. used upon the old canal, tho question : .uses whether tho water-powers be confined to the old canal, or the increased water-]) wer furnished by the enlargement distributed along the new canal. The new canal has many advantageous positions for mill sites, but it is evident there would be uo water 128 ^W?" r' powers, if water, for power, is not sent down it. ThHouIJ recommend I hat the water- l)Owerh be lionliiiod t;* the old cunul. If this canal, in the future, cariics the productions tributary to it, there will be a heavj'^ tr.ufic in vessols of lart^o tonnajje. The now lino is exposed, along its whole distance from the Humniit of Luke Ontario, to the wind; a curient of any great velocity would bo disadvantjigcous, taken in conjunction with the Hweop of the wind that voshoIm are exposed to, ff there wore no other ])()8itions in which the water- power could 1)0 utilized, this oltjec^tlon would not be sufficient to counterbalance the ir)cre;ised revenue from the power furnished by the onlargenient, slill when any disturbing influence upon thii- line of navigation {onld bo obviated, without loss of revenue, it becomes preferable to confine the water-))0wer8 to the line of the old canal. It is propo^ied to close the old canal, to navigation, and convert it into a purely water-power canal, which would give sufficient mill sites to use the Convert tho old whole power fuiriished by the enlaitjemont. The numerous basins canal into a oanal ' , , . ^\ a ^ .- i ^i i i i i ■ u for hydraulic pur- now used to prevent tiie fluctuations ol tho levels by lockages, would P"'®'- be available tor mill sites. This line is a-ivantageously situated, with regard to /ailw.iy communicaiioii, whieh could be extended to neaily every mill. The o.dy lock requiring io bo raaintainf d would be lock No. 2, which would allow vessels lo ascend to the St. r fi.aiiuonaiue. and repairs, upon a now useless line of navigation, when raihv.iy oomiuuni ation would answer every i)urpose. The masonry of the locks and w'oics is iii a xid condition, and must entail an increasing expenditure. There is a great Ion .:'h jf floating tow-paths, expensive to maintain, which would be dispensed m\h. Ti ) p esent wooden swing bridges would bo replaced by permanent structures if iron. The water-power could then be dealt with, apart from navigation, upon scieiiiific principles, its full development be advantageous to the district, and become a large addition to tho revenue ol the country, which would tend to lessen the cost of maintaining a canal yearly doing less business. The ji. cscnt annual cost of maintenance, and repairs, of the old canal from Allan- burg to L. i:o Ontario is some 817,000 in wugow to men employed. In the year end- ing June, ' S81, the cost of maintenance and repairs was some 660,000, in 1882, some 850,000. '-Ve jnighi assuiue an ani'ual saving of $75,o00, in abandoning this canal, which, as \.ill be subsequently shown, will never be required for navigable purposes. G^he onlar;. )d canal down the mountain will be used purely for navigation, and unaffected oy any dislui bing influence, caused by supplying water to mills, along its Dute, whi: h, as has been shown in previous reports, might arise without careful management. Any detailed plan for utilizing the power is unnecessary, until the canal is ccupleted, and it is decided whether the water-power be confined to the old canal . Some "too cubic feet of water, ])or second, can be safely used for hydraulic pur- poses with lut causing too great an hydraulic gradient, or current of a velocity that would be injurious to navigation. When the canal is fully completed and its character! ucs studied, a greater supply might be permissible, the current would bo wholly CO!. fined to tho summit level where it could not be objectionable. Betwcjn tho summit level and Lake Ontario, there is a fall of some 3-'5 foot, at mean wat- r level, which would give, with a supply of 900 cubic foot per second, some 3.^,150 ho)-ie power, of which 16,000 horsepower might be ettectually utilized and return a revenue, if all loused. The value of power upon this canal was sot at $10 per horse-|iowor by 'ho Welland Canal Company in 1829. Some 20 years after, by Order in (Council, 27th October, 1849, it was set by the Government at 06 per horse- power for the first ten horse-powers, and $5 for each subsequent horse-power. Ground illlll: 129 the water- ire will be ig ita whole any great f the wind the water- )alanco the when any out lOHS of of the old to a purely to use the jrous basinn ages, would tuated, with y mill. The llow veHsela Lock No. I ile. Vessels required to or'vft:4 that raflSc to the icurring the !" navigation, )nry of the expenditure, ch would be y permanent 1 navigation, lislrict, and nd to lessen I fi'om AUan- e year end- 1882, some this canal, ble purposes, igation, and Us, along its lOut careful y, until the li to the old draulic pur- olocity that etcd and its nt would bo D 325 feet, at nacond, some utilized and n.s fot at $10 ar:( after, by 6 per horse- wer. Grround rent for mill «itos was $20 per annum, the water was conducted from the canal to the mills by the (tDrornmeiit, and the interest on the cost charged to lessees. These charges have been maintained, to private individuals, with some exceptions. Whatever might bo said for a low priced power before a protective tJiriff was adopted, it is evident that under such a policy all should fare alike. If the tariiF is sufficient, low priced power is a double protection and an illegitimate profit from the taxes of the people. Upon the canal, from Allanburgh to Lake Ontario, power I should be worth, including mill sites, |1'2 per horse-power per annum. I have pre- I viously taken 1(5,000 horse-powers as capable of being utilized, reducing this to 10,000 hoiHC-power, including the power now used by the mills, on the line of canal, it would give a revenue of $120,000 per annum, which, with the saving caused by the abandonment ot'the old canal, would be a largo item, in the event of the tolls being reduced <>r abolished, towards meeting the expense of maintenance and repairs upon the can.", I. The supply weir at the head of the hydraulic race is capable of discharging doublet' e quantity of water, it, at jn-esiml, discharges. It is evident, ^ower fan^hed by that purely hydraulic oxpenditure, should be covered by utilii'iing ^ ' the full power of the race. From levels Nos, 11 ' ) 2, the fall is about 112 feot. This race could be dammed above the present aquod^ict and furnish an additional mill power; at the aqueduct, a fall of forty feet could bi obtained, with available sit js for milli — this fall with a small quantity of water wo ^d give a large power. From this race there might be obtained some 1,000 hoi':-'> power, which would give great manufacturing facilities near the city of St. Calhariresanda return for the expenditure inc urred. Upon this canal, as well as others, Ihr re has been made, apart frca the hydraulic race, which was especially f( mill powir, additional ex] ondi ure for furnishing water to milis ; it is unnecessary, as done with the Lachint Canal, o piirticularize this expenditure, as the pi inciple has been fully established. 1 iaa> mention the great outlay at Port Colborne, for admitting the water from LuLe Jl.ie, which was unnecessary, to supply all that was required, to meet the eonsumption ibr a canal for navigable purposes. Along the line of canal, many other expenditures, purely for mill purposes, might be cited. I have dealt with the main lino of canal, but, connected with it, there is the water power obtained by the dam upon the < hand liivor at Dunnville. Power at DmuiTille Since the adoption oi Lake Erie level, the feeder not being required *" '* "' for the sup))ly of Ihecanal, except in the case of slides in the deep cut interrupting Lake Erie level, nearly the whole of the water is available for power, as the navigation from Port Maitland is of little consequence. It was the intention of the Government, to construct a hydraulic canal, to carry the water to the town of Welland from the feeder, and utilize the fall between it and the Chippewa Creek for power. As the head, at that place, is greater than at Dunnville, it is obvious it would give increased power to send down the feeder as great a quantitj of water as pos- sible, the mills at Dunnville should then bo required to strictly ecoiiomise the water, as well as the mills upon the feeder, which now waste water undo: a low head, and with the most rude description of wheel. If this water is to bo conveyed to Welland it would be well, that the leases of the two saw mills upon the feedcu- were cancelled, as they waste a large amount of water. The total power v.hich the water discharged, throu_':h the wheels at Dunnville and upon the feeder, \v )uld give is some 295 horse-power, or at a rent of $10, would yield $2,950. The powc r alfordod by this dam is susceptible of giving a much larger revenue by practical and economical management. lJ])on the main canal and at Dunnville there could be leased hydraulic power sufficient to realize a revenue of $125,000 per annum, in adflition to a saving, by abandonment of the old canal, of $75,000, or a total of 8200,000 per annum. A comparison of the rent paid by the lessees upon this canal, a present, with the amount that should be obtained by tiae Government for water used, shows a great dis- proportion, viz : — . 130 Proposed Rent. Present Rent. Si. Cutharirios Walor Power Company $1:^,000.00 $ 500.00 LoBSoes on main lino of canal 1^6,000.00 8,747. tJ7 " at Dunnville and Feeder 3,000.00 1,284.00 Totals $61,000.00 $5,531.67 ^■n increasod revenue of $45,500.00. Effect 01" the Competition of Rival Routes upon the I'nture Trade of thi3 Enlarged Welland Canal. Upon bhe recommendation, previously made, to close the old lino of the Welland Canal, from Thorold lo Port Ualhousie, and convert it into a water power canal, it was stated thin portion of the canal was useless so far as required for navigable purposes. In support of this proposition, reference may be made, to some general remarks made iu a repoitof April 2!)th, lb82, upon the transportation question and the effects of the compotition of rival routes upon our canal system. In addition, I may state with particular application tc the Welland Canal, that the traffic is year by year diminishing, and the expense of maintenance and rej^airs increasing. That the increase of traflSc, on account, of the enlargement, will be in any way commensurate with the expenditure, is highly improbable, at least for years to como. The direct rival to the Welland Canal, for the transportation of cereals, which are shipped at various western ports, for tide water, is Buffalo, and the iinos of lailway and fSrie Canal centering there. From Chicago, to Buffalo and Port Col borne is nearly the same distance. Bufl'alo has every advaut'igo for transhipment and storage of grain. The inner harbour, or rivei-, is lined with elevators, coal trestles and pockets. There is every improvement necessaiy for the trani-fer and storage of '•oreals, and for tho loading of vessels with return oargooM, with celerity and dispatch. There are thirty-six elevators, costing some $(), 000,000, with a storage capacity of 8,000,000 buhhels and a dally transfer ca )acity of 3,200,000 basheis. Throe of ihv. eleva' >ts are owned by railway corporations. l^Iinoral roads are also iuaking Bufi'alo u .^h.[)ping point; the coal exports westward are increasing yearly, which, with sait and other merchandise, insure ves-iels a return cargo at, 1 ometimes, more remunerative rates than the eastward freights. In coutradistii '.ion to this, the enlarged Welland Canal has inadequate facilities for lightei'ing and iriii, sporting giain from Port Colbome to Port Dulhousie. At the present terminal p int of the large lake craft, the elevating, storage, and transfer capacity Mre insufficKn to accommodate any considerable traflic, the expense of demurrag-' so grea' th t grain, in any quantity, could not be diverted from Buffalo to t/his point, and in f;< (lit on it cannot provide return freights. To demonstrat th > advantages Buffalo possesses in the way of loading and clearance of vessels ; woile in Buffalo, statements were made which I had not the opportunicy lo substantiate, and cannot answer for their correctness. At one coal trestles tl.oy are able to load dailj', into vessels, 4,700 tont., and unload fiom cars of the 2,700 ton,- The " Kershaw" came into port with 1,800 tons, at 10 a.m., and cleared at 12 p.BC., with the .same quantity of coal. The steam barge " Hiawatha" with a tow of two vessels, some 4,000 tons in all, were unloaded and cleared within twenty- four houi s. The steam barge "Palmer" arrived light at 10 a.m., and cleared with 1,300 ton: of coal at 12 a.m. Mr. Thurston, Secretary of the Buffalo Board of Trade, states : — "Thrre are four large steamboat lines plying regularly between thin port and ports on Lakes Erio, Huron, Superior and Michigan. Those combined fleets number fifty-two lirst-claas steamers, having a capacity varj'ing from 1,750 tons ti) 1,200 tons. With the completion of the Government improvements in the Detroit River, which are well ico, at Basin No. 2, Lachine Canal, I find that one of the lessees, by the Inland Ilovcnuo Report for 1881, is some $34,000 in arrears. The GovernmiMit if required to pay the value of erections, but if this arrearage was made a nett-olT, i he property could bo acquired at little expenditui'o. This property might, then, be put up ut auction, at an upset price of say 6 per cent, interest, as rental on 80 ccntp for cadi h ^uare foot, for mill site, and $12.00 per horse- power as rental value of power ; if it were sold at this price, or in excess, it is evident this would be a fair index to the rental to be established for the next 21 years, or whatever period was determined for, upon Basin No. 2. The same method could be applied to the other canals. Mill sites could be put up at auction upon the Boauharnois, Cornwall and Williarasburgh Canals at an upset m*ice, determined upon for mill sites, and SI 0.00 per horse-power for power. On the Welland Canal the upset price for power might bo fixed at $12.00 per horse-power, and at Dunnville $10.00 per horse-powor. By such a method, a fair means would be employed to ax the price for renewed leases. It would be well that the Government should also expropriate the land and water power which has been alienated from its oonti-ol by deeds or grants in perpetuity, — an objectionable feature upon the canals. The determination of their value wouH lead to evidence by experts, which would be another method of determining the value of jiower in the particular localities in which these grants have been made. If uniformity of rates upon all of the canals were desired, the upset price for not including mill sites, might be placed at $10.00 per horse-power per annum, powe;', which, if compared to cost with steam power, would give the following diflference as Steam-Power. — Engines working 1 hours per day, for 300 days, coal $5 per ton, at 31bs. per horse-power per hour, engineer's and firemen's wages, oil, &c., interest and depreciation in plant included — per horse power per annum $ 60 00 Water-Poweb at a rental of $10.00 per horse-power, in- cluding interest and depreciation in turbines, pen Btocks, flames, &c.,— per horse-power per annum 16 00 137 igh there [jturers of ince from i ration of e paid by lals, or at id on our rein men- CO is paid upon tho rate upon t ia unfair ', in com- lat I have onewal, is he canals, he various 8, it might under tho le Canal, I is some but if pendituro. } per cent, per horao- is evident 1 years, or lid be put t an upset On the rse-power, 3 would be and water petuity, — wouH lead value of it price for )er annum, ference as '■I one, )0 )0 To all mills using water for a greater number of hours "the difference in cost would be greater. In the following tublo, additional statements are added to those given elsewhere, for several places in the United States. Tho value of power not before atatod, is what it was five years ago (taken from a work of Mr. EmorwonV). The value of water-power depends upon its situation, and upon the demand for it for manufacturing purposes in different countries, and in different localities in the same country. This table shows the difference in the value of power. Anj' comparison, between the Canadian canals and elsewhere, would bo ori'oncons, as power is worth only what it would bring at public competition. This coni|)ari.snri might bo advantageous in the case of manu- facturers, of the same products in the United States and Canada, who compete with each other, the difference in the cost of power might operate as a bonus to the home manufacturer, unnecessary to bo given in addition to tho tariff which protects him. Rentals Eeceived for Water Powers. Horae-power per annum, Eastern Jumna Canal, India $ 230 00 Isabella 11. Canal, Spain 119 00 Marseilles Canal, France 42 90 Dundee Water-Power Company, New York, U.S., (mill site included) 44 00 Dayton Hydraulic Company, Ohio, D.S 40 00 Ousatonic Water Power Company, Connecticut, U.S.... 26 00 Proprietors Locks and Canals, Lowell, Ma. s., U.S., (sur- plus water) 23 50 Holyoke Water-Power Company, Holyoke, U. S., (present value) 20 00 Cohoos Company, Cohoes, N.Y., U.S , (mill site included) . 20 00 Minneapolis Mill Company, Minneapolis, U.S 19 00 Essex Company, Lawrence, Mass., U.S., (surplus water). 18 50 Union Water-Power Company, Lowiston, Me. U.S 12 50 Turner's Falls Company, Vermunt, U.S 10 00 St. Lawrence'and WellandTCanals. Approximate average rental of power including mill^sites, with power, and power without mill sites, say 3 00 Lachine Canal, IJasin No. 2, (mill site included), say , 15 00 «' " St. Gabriel and Colo St. Paul, with little land, say 8 00 Beauharnois Canal (mill site included), say 6 00 « <« « <* « ,. 2 00 Cornwall Canal (mill sites not included), say Glh <« " " « '< 30" Williamsburg Canals"(mill sites included), say 4 00 Welland Canal (mill sites included), say 6 00 " " (mill site included), say 50 The rental upon the Canadian Canals, as above stated, is an indefinite index of tho cost of power to the manufacturers, as some are using so much in excess of the quantity leased, that some of the figures above given should bo taken at an amount varying from one-half to a sixth, of that stated. From the tables of machin . - upon the different canals the extent of the manu- facturing indu. I OS can be determined. An approximate summary Manufactories on the may be made (,i the manufactories in operation, together with those ^^^ ' in process of construction, or shortly to be in operation, their lead- ing productions and namber of hands to be employed in them. i'l = 1 138 Summary of Manufactures on the St. Lawrence and Welland Canals. Manufacture of Silk. — Silk Fabrics nnd Thread : 1 Mill; 2000 Spindles Manufactures of Wood. — Consisting of ship building and repairing, &aw mills, sash and door factories, dressed lumbor, agricultural machinery, spokes, wheels, general wood working: 21 Mills Hands Employed. 50 317 Manufacture of Flour : 33 Mills; 125 Euus of Stone ; 11^ Rolls.... 323 Manufacture of Paper. — Consisting of news paper, wrapping paper, calendered papers, &c. : 5 Mills; 55 Engines 578 Manufacture of Woollens. — Consisting of felt works, low woollens, blankets, fancy blankets, suipendor web, tweeds, cloths, spin- ning, knitting, &c. : 12 Mills; 34 Sets of Cards 910 Manufactures from Iron and Steel. — Consisting of malleable iron works, rolling nail plate and spike rods, tacks, bolts, horse nails, foun- dries, machine shops, files, nails, spikes, car wheels, axes, saws, augers, bolls, shovels, wire staples, hammers, edge tools, handled agricultural implements, knives for mowing and reap- ing machines, marine oninncs, &c. : 2liMills 1,494 Manufactures of Cotton : 5 Mills ; 152,240 Spindles ; 3,725 Looms... 3,536 Miscellaneous Tndustries.^Smh as granite and marble dressing, manu- facture of paints, roofing material, plaster, rope, linseed oil, spice, rice, leather board, starch, glucose, paper pulp, cement ; 14 Mills 650 Grand totals, 115 Mills, employing hands 7,757- If the policy is to charge at the jiresent rates for power, the Government should insist upon the host water-wheels, all water-wheels that do A system depends not obtain a certain standard of efficiency should bo replaced by those a^pted. * ^^ approved of b}' the Government or its Agents. Any new wheels placed upon the canals shouLi Ijo subject to such approval. It should be insisted upon, that lessees erect such hcadgatos as may place the water always under the control of the officials of the canals, and to keep the same i.i repairs. That when any leakage in flumes, penstocks, or wheels occurs, or they are allowed to become out of repair, the water to be cluscd from the mills at the head-gates, after notification of such repairs being required, followed by neglect to make them. All expenditure for mills or sup)d3'ing water to the mills should bo borne by the lessees themselves, either the Government making the expenditure and charging the interest upon outlay, repairs, and maintenance, or the lessees making such expenditure undji the approval and supervision o( the officers of the Government. If it bo decided to raise the hydraulic rents and obtain their present value, making them a source of revenue, the cost of power would be such that the Government would not require to take cognizance of the water after it leaves the canal . Poor wheels, waste of water, &c., would not allciit the rovonuo obtained, if lessees pay the value for the watci, it is immaterial and not the concern of the Government what is done with it. So much water is owned by lessees, they can do what they please with it, so long as it does not interfere with navigation oi* injur© the canal proper. lliili 139 In such case, lessees would be dealt with in the same manner as those under private water-povvor companies described in one of the foregoing reports. They boBomo a recognized attendant upon a navigable canal, with rights, status, and importance, in a minor degree to navigation. Expenditure, in this case, should be made by the Government, lo improve the supply of water and to render it as constant and invari- able as possible. The water should be doliverod by the Government, at its own expense, into the raceways of lessees, at such a distance from the line of water in the canals as circumstances would require. Structures for controlling the water, measuring, and all other appliances, necessary for ])rol('cting navigation, should, under tboso con- ditions, be built by the Government, it value is obtained for the amount of p.)Wor now Used, without reference to the additional ])owi»r furnished by the cnl.'U'!j,omont, there sho'j id be, at least, a revenue of $100,000, for which some $21,000 is now recoi'jed. The most important feature of new leases, or system, is the specification of the volume of water to be drawn for power, and the head under which it is to be utilized. If a certain number of horse-powers be leased, each horse-power to be 75 per cent, of the theoretical power of the water, and to bo a specified number of cubic feet per second, at a stated bead ; a lease containing this speciiication, with a general clauso empowering the Government to supply, regulate, and measure the water for power, and impose such conditions for its effective utilization and the protection of naviga- tion, with other engineering details as at any time maybe deemed necessary; such a lease, in an engine- 1 ing point, would be all that was required. A lease should be drawn up for submission to the law officers of the Crown, and all leases made in the interval of the adoption of a new system, should be of a form that would be adapt- able to it, if no decided action is taken upon all the leases in operation. A means of re-arranging the leasing of hydraulic power upon A method of dealing the canals may bo suggested ; the practicability or possibility of leases. Present ^hich it is not my province to judge. There could not bo any doubts of its cflTectivoness. By legislative action, or an Act of Parliament, cancel all the existing leases of water-power. Such summaiy legislative action would not be any arbitrary interfer- ence with the rights ot lessees, as they would receive, under the new leases, all they weie entitled to under the i)ld, with the exception of readjustment of rents, which the majority of leases provides for. The now form of lease would bo drawn up with no more stringent regulations, in a legal point of view, or with greater scientific pre- cision, as to the method of sup])lying, mea-^uiing, and controlling the water for mill purposes, than is sot forth in the leases of private water-power com))anies. Such a lease could not be objectionable to a pari}', on a navigable canal not constructed for water-power and paying a much less rental. Action might bo taken on the grounds : — First. The present form of lease is loose, ind')finite, and not adaptal)lo lo any satisfactory systematizing of the leasing of water-power on either a business or scientific basis Second. That some two-thirds of the leases require renewal. Third. Th.'it in the majority of ibo>e kviscs the rental is higher than later leases which have some time to run, before tiioir term expires. That by the provisions for the rendjustment of rent, in the leases, it would be a hardship oi- injustice to establish a higher rental than the later leases have been granted for. For example, the term of two leases, of A. Buntin, Esq., on the Heauiiarnois (!an:il, has expirel ront Ins been paid at the rate of nearly g.'i.OO per horse-power per annum, for 2f) years; he manufactures paper of the -;ame class, and in direct competition with John iJiordon, Esq,, upon the Welland Canal, who has two leases, one H years, and the other 18 years to run, which gives him power at 50 cents jier horse-power, or one tenth the amount. On what equitable principle can the rent for another term bo fixed in the case of Mr. Buntin? Other instances of a similar character, on the satao canal, could be cited. 'I 140 Fourth. That the enlargement of the canals has necessitated some action of this kind. The increased supply of water for mill purposes, the changed conditions from the time the orignal instruments were granted, render it difficult for the Govern- ment to deal with this increase, with these in operation. Fifth. There are three monopolies at one or several locks, where the power is subleased to the profit of individuals, a system that successive engineers, who have been connected with the canals, have strongly reported against. To enable the Gov- ernment to deal successfully with the increased water supply, and dispossess from the control of middlemen, the property of the country, renders necessary the annul- ment of the leases under which, has been assumed, control of the water-power at St. Gabriel Look, Cote St, Paul Lock, Lachine Canal, and the lease of the St. Catharines Water- Power Company. Pi'ivate manufticturois, to whom have been leased the totnl power at several locks, to pnvont claims for any increased power, provided at these locks, would require more definite instruments to be drawn up. Sixl?i. A general reform would enable all arrearages of rent, which it is impo':aiblo to collect, to bo wiitton off the books and the collection, or settlement, of that collect- ible, before new leases are granted. Under these circumstances, there would not be detailed, year after year, in the Jieports of the Inland Revenue Department, the large rniount of arrears supposed to be due to the country, and uncollected, which may bo said, tif t to be indicative of sound business, or administrative principles. Seventh. If action were taken, the term of the now leases could all date from the same period ; at the cxpii'ation of e.ich terra the rents, for the water-power upon the canals whether its value has, in the interval, decreased or increased, could be re-adju^ted on a satisfactory basis both for lessee and lessor. Leases granted in the interval of a term might be granted for the unexpired portion of the term, and become suiijocL to the general readjustment and revision, with the other leases. The term of lea-- e might be i-hoi'tened to 10 years, which would permit the lessee or the Government tf.king advantage of the variations in the value of power, either through the changes of commercial policy in this country or the United States, or from other causes. WELLAND CANAL. I Tables of water wheels, approximate discharges of water, horse-powers used, and other information with regard to the manner in which the water, drawn from the Canal for hydraulic power, is utilized. Also the names of Lessees, Sub-Lessees or Occupants, situation of mills, date of Lease, power leased, rental paid, and description and list of the machinery in the various manufactories. U2 Welland Table of Water Wheels, approximate discharge of Water and Number of Horse- Hydraulic Name 2 No. of Name of Date Description Description & Situation of >< Runs or -a of Sub -Lessee Mill. of 1 of Saws Rent. of Machinery Lessee. or Occupant. Lease. 3) 0) o c c Mill. Leased. in Mill. a o 6 $ cts. Robt. Lnnrie R. & .J. Lau- Port Dalhou- .Jan. 1, 21 Flour Mill ... 3 runs... 197 30 2 runs and ma- 2 & Co. 1 rie. sio. 1851. chinery. R. & J. Lau- Sylvester do ... Dec. 27, 21 do 4 ruU8... 240 GO 4 runs and ma 15 rie. Neelon. 1851. chinery . Jno. L. Ran- Welland Levels Nos. Jan. 1, 21 HandleAgri- 6 runs... 260 00 Trip-hammers, 135 uey. Vale Man- ufacturing 1 to 2. 1851. cultural Implements presses, saws, planes, grind- stones, «c. Co. Oal. Phelps . Sylvester Neelon. • Hydraulic Kace. do . 21 Flour Mill ... 6 runs... 150 00 7 runs, smut mills, bolts, sep arators, elevators, &c 40 do ... Abell, sub- leased from do Machine Shop and Lathes, drills, planes, fan fi Neelon. Foundry. furnace and foundry. Richard Col- Whitman & Levels Nos. Jan. 1, 21 Knife Works 2uprig't 167 67 Extension lier. Barnes' Ma- nufacturing Co. 1 to 5. 1851. saws. (building) of Knife Works on S. E. cor. W. P. Co.'B Lease. Thos.Towers W. B. Smith Levels Nos. 9 to 10. do . 21 Flour Mill... 2 runs and corn crusher. 140 00 2 runs, 1 smut m a c h i n e , 1 purifier, 1 separator, li sets rolls, elevators, & c 4 No lease Lincoln Pa- per Mills. H yd r a u 1 i c Jncc, near ... Paner Mill 100 00 1 60-in. doul)le cylinder,(i 800 50 granted. • Lock 11. lb. engines, 1 Briglii man en- gine. 2 bag macliine', 2 flour-sack ma- chines, 2 hot- to me rs, 2 print, presses, &G. I4d Welland 3f Horse- Sydraulio •d ption h fk hinery a ill. m d OS n tM o 6 ^ nd ma- 2 y- id ma 15 y- omcrs, 135 saws, grind- smut bolts, rators, »r3,&c 40 drills, fan e and 6 y- sion ng) of Works i). cor. Co. '8 smut 4 line fier, 1 r It tor, 1 rollS; )rs, & c louljle r,G 800 nes, 1 an en- ; bag ^', 2 •k ma- 2 bot- s, 2 esses, 50 Canal. powerB Used, Dimensions of Flumes, &c., and Machinery in the Mills of the varioas Lessees. Descriptioa of Wheels in Use. Maker, Wilson, DunJns., Paxton, Tait & Co., PortPerrv. Wilson & Co., Pic- ton. A. W. Cole, Os- wego, do do Tyler Slayter's. Barber & Harris, Meaford. Wilson & Co., Pic- ton. Wilson, Dundas. McGill ManufaC' turing Co., Osh awa. Goldie & JlcOul. loch, Gait. Leffel'8 Little Giant Sampson Xew Domin- ion. Centre dis- charge. Overshot .. do .... M Turbine class Little Giant. Slayter's Centre dis- charge. Lefifel Archime dean. in 48 48 33 60 54 60 18 X lift 6 in. 14 X 11 ft 6 in. 16 tn a> c3 as 320 Head. d o d 81 ■a 33 36 56 30 360 540 350 720 600 48 336 ft in 11 11 6 11 6 9 6 9 6 9 6 2 G 2 6 18 12 11 6 14 6 14 6 X! OS ^ Water Dis- charged and Power. ft in 10 10 10 9 6 9 6 9 6 22 22 .2t3 13 d r- 4, <=T3 , o J3 XI 51 4 6 6 13 4 9 6 13 8 6 28 4 10 8 6 8 9 12 6 12 6 18 6 17 6 12 18 ft in ft in 6 02 iO 70 10 1 6 1 3 I 1 6 40 I u% Welland Tablt: of Water Wheels, approximate dischnro;© of Water and Number Name i S No. Of Namo of Situation Date * Description Description P^ Runs or "S, of Sub-Lessee of of 1 of Rent. of Machinery 1 0; Saws Leasee. or Mill. Lease. Mill. in Mill. -3 J Leased. J Occupant. "3 1 n • $ cts. Gordon & G ordon k Lock No. 15. July 1, 21 Cotton Fac- Water at 240 00 ll,4003pindles. 236 McKay. McKay. 1881. tory. Locks Nos. 12, 13 and 14. looms, &c. King & Do- King & Do -Levels Nos. .July 1, 21 do 100 ILP. 400 00 300 looms, 12,- 260 lan. lau. 14 to 15. 1882. 000 spindles. Jaa. Wilson . Jas. Wilson. Water from Aug. 8, 21 Foundrv and Machine 25 n.p., 42 00 Lathes, plan- flume, Le- 1881. atfeper ers, drills, vel 15. Shop. HP. to lOH.P., and 15 perH.P. to 26 H.P. fans, saws. Jno. Riordon Jno. Riordon Between Locks 17 & ai. Feb. 21, 1871, & Oct. 1, 21 Paper Mill... Water at Locks Nos. 16, 440 00 Eleven 500 lbs. and four 800 lbs. engines; one 72 in. and 160 1879. 17,18,19 and 21. one 90 inch Fourdrinier ; one G8 in. cy- 1 i n d e r and other appli- ances for ma- nufacturing news and wrapping pa- per. W. Beatty... McCleary & Levels 20 to Jan. 1, 21 Saw Mill .... 1 uprig'l 108 00 1 uiiright, 1 12 McLean. 21. 18.51. saw. circular and 1 slab saw, ed- ge r, 1 rip saw. A. Debbie... Dobbie& Ste- Levels 21 to From 1st Machine 1 run..., 80 00 4 lathes, 2 [ila- 16 wart. 22. Jau'ry, 1865. No lease rentp'd Shop. neis, 1 drill, 1 circularsaw, 1 band saw & 1 wood lathe. W. Beatty ... R.B.McPher- do Jan. 1, 21 Woollen Water G3 «0 2 sets cards, 4 70 son. 1851. Factory. for 10 H.P. spinuingmills knitting ma- chine, wind- ) ' ■ ers, pickers 4( 1020 ipiadlei. 145 Welland d Number -a «> iption S" a. chinery a Mill. -3 ^ m o o Se; plndles, 235 , &c. jms, 12,- ipiadles. I, ))lan drills, saws. 1 500 lbs. four 800 engines ; 2 in. and 90 inch Jrinier ; 8 in. cy- 1 e r and appli- 1 for ma- icturing s and piug pa' light, 1 larand 1 saw, ed- l rip saw, 03, 2 pla- 1 drill, •iilarsaw, id saw ic od lathe. cards, 4 lingmills ing ma- B, wind- pickera A •piodlei. 260 160 12 16 70 Canal. of Horao-powera Used, Dimonsiona of Flumes, &c. — Continued. Description of Wheels in Use. Maker. Name. LeflTc 1 Joiival Stilwell * Bierce, Victor Manufacturing do Co., Dayton, 0., U.S. Leffel Holyoke Manufac- Risdon turing Co. do Joseph Hall Manu- Leflel facturing Co. do do do do Stout, Mills & Co., American ... Dayton, 0. do do ... Joseph Hall Manu- Leffel facturing Co. do do Dobbie, Thorold... Butterfly'tur- bine class. Unknown do .. To be put in. Stout, Mills* Co. American ... Paxton, Tait & Co., Port Perry, Leffel ■j^ in 52 42 41 35 18 50 43 74 74 35 30 20 30 74 48 42 36 64 48 a HI a> a XJ o a *; -' at 405 Head. 720 576 ft in 18 18 12 12 12 Si .2 ft in 22 27 6 22 27 6 14 9 14 4 15 15 15 15 14 6 14 6 16 15 16 10 13 14 14 14 14 12 3 12 3 14 14 14 13 6 13 6 Water Di.i- cliiirged and Power. j> u O 80 57 275 73 57 159 159 30 18 8 20 147 162 65 62 - v. O o 0,2 ^ z o -^ a: 209 280 135 106 200 200 35 21 9 20 147 192 12 66 57 Dimen- sions of Flume. ft in 7 6 100 15 10 10 12 11 6 10 6 10 8 5 9 a, Q ft in 8 6 6 6 6 6 6 6 6 6 4 9 4 6 Dimensions ot Penstock. J3 to a ft in ft in 10 12 8 5 12 9 6 6 6 Dimen- sions of Tail Race ft in ft in 17 6 15 6 10 13 6 20 20 8 6 7 6 ft in 6 I 3 6 3 6 36 2 6 I 6 1 6 14« Wblland Table of Water Wheels, approximate di'^charge of Wator, Number Xarao ■i 7' Xo. of Name of 8ituation|of Date * >- Description Runs or Description a of Sub-Lessee of 1 of Rent. of Machinery Mill. CO Saws '3 3 Lessee. or Lease. OP Mill. in Mill. >-2 Leased. Occupant. "3 g 6 $ cts. W. H. Ward, John McDo- Levels 22 to Jan. 1, 21 Saw Mill 3 circu- 196 00 1 rirciilnr, 1 15 (2 leases.) nough. 23. 1851. lar saws 2 lathes, 2 plan- ing ma- chines k 2 up- ri gh t saws. edging, 1 slab- bing and trim- ming and 2 upright saws. McPherson& David Coo- do .. Apr. 17, 21 Flour Mill ... 2 runs.. 110 00 2 runs, bolts, 3 Weir. per & Son. 18G8. purifier, &c. Brown&Ross Jas. Norris. . Levels 23 to 24. Jan. I, 1851. 21 Flour Mill ... 3 runs .. 180 00 3 runs, 2 bolts, 1 sep irator, 1 smut machine, 2 purifiers, 1 braa-duster, 2 flour-i)ackers, aud elevator. 6 Peleg How- Howland & do ... Oct. 24, 21 do 4 runs . . 222 10 6 runs, 1 pony 20 land. Co. 1871. ' run, and 1 set rolls, purifiers, bolts, separa- tors, bran-dus- ters, smut ma- chines, &c. John Battle. T ho rold Wood Pulp Co. Levels 24 to 25. Feb. 11, 1880. 21 Paper Pulp . 2 runs. . 120 00 2 emery grind- ers or pulping engine, Cleve liuid engine, saw.s, i)umps, screws, &c. 9 Geo. Keefer, Jas. Lawson Level 24 Oct. 2G, w Flour Mill ... 4 runs . . Free 4 runs, bolts, 12 Ben. 182.5, ■-1 puriliers, sep- arators, pnck- Nov. 13, « 1845,and er.s, dusters, Lawson smutters, ele- 18G8. vators, &c. John Battle. John Battle. Levels 24 to 26. July 8, 1879. 21 Cement Mills 1 run.... 80 00 2 runs, eleva- tors, convey- ors and crack- 35 er. Bond, Elliott John Gill.... Port Robin- June 1, 21 Flour Mill ... 3 runs . . 206 00 1 run, 1 chop 2 & Coleman son. 1881. run and ma- chine. i 3742 67 1087 ut Wblland or, Niimbor ?rlption icbinery Mill. ciilnr, 1 ig, 1 slab- Ill d trim- 1 and 2 Ut sawa. 9, bolts, ur, &c. , 2 bolts, 1 rater, 1 nachine, •ifiers, 1 [luster, 2 l)ackerB, levator. , 1 pony iiid 1 set )urifier8, separa- ran-dus- nut ma- !, &c. Y grind- pulping B,Ulevc engine, puuips 3, &c. I, bolts, rs, sep- s, pnc dusters, era, ele I, &c. , eleva- convev' d crack- 1 chop nd Qia' & a, a w o in 15 20 12 35 1087 Canal. of Horsopowors Used, DimenBions of Flumes, &c. — Concluded. Description of Wheels ia Use. Maker. Name. Debbie k Stewart, Thorold. Smitli, Lockport... Stout, Mills A Co , Dayton, 0. Goldio A McCul- loch, Gait. Nicholls k Co., Port Hope, do do Wilson & Co., Pic- ton. Wilaua, Dundas... Thornton &Bwart, Oshawa. Wilson & Co., Pic- ton. Antiquated Wood- en. Dobbie & Stewart, do Turbine class, do Wooden buc- ket, centre discharge, do Turbine 1 class. a 5 a CO a V .ia o a) i P tumeric an A r c h i r.i e - dean. Leflfel do do Little Giant. Wooden. Tyler Leffel Liittle Giant. Overshot ..., Turbine class do ... Centre dis- 2 charge. 55 11 in 60 48 54 24 44 48 42 40 48 26 33 48 72! 33 561 480 216 168 240 Head. d o _a u 09 OS iJ a 1 i sii i ng wheels, shears and iron work- ing api)li- ances. 80 Unknown , ritl& oth- ers Dobliie k Stewart, Thorold. I'nkuijwn d,. ... Wilson k Co., Picton do McDonald, Jones >i Co Levels Nos. C t) 7. do 14 ... Pulp and Pa- per Co. ... •) i'nniues,2pa- jier machines, and 3 boilers. 28 Jos. Hall & Co., Oshawa. Wilson* Co., I'icton do" ... N. A (>. J. Phelps. Levels Nos. 7 to 8. do 14 ... Saw Mill ... Re-building — circular saws, edges, places, kc. 20 Joseph Hall & Co., Osnawa. Unknown do Barber & Co Levels Nos. 8 too do 14 ... Knitting I'ttctory. ... 1 set caifls. 1 Jack, 4 kiiit- tinjr iVaiiics, 1 winder, &c. 30 Unknown do P.aJ. Phelps Levels Nos. 9 to 10. do 14 ... H ft m ni e r Works. Tiip hammers, jiresses, grind- stones, &c., kc. 18 Wilson & Co., Picton d) ... H. Patcrson &Co. Levels Nos. 10 to 11. do 14 ... C n 11 a d a Wheel Works. ... Saws, turning and binding- machines, planes, &c. 35 Josepli Hall k Co., Oshawa. do ... J'as. Norrls. . Hydraulic Knee. do 14 21 W c I 1 a n d Cunal— Two Flour Mills -Mill No. 1. 29 seta rolls, 9 purifiers, 2 smut ma- chines, 2 sepa- rators, 7 bolt- ing chests (27 reels in each), 2brandu8ters, 3 dusters, elevators, 4c. 20 Stout, Mills k Tem- ile, Dayton, 0., ' S. Colo, Oswego, N.V.. 149 ATTTARINEB k Co., Picton lall & Co.. wn. &Co., I'icton Mills k Tem- Daytoa, 0., Watbr Power Co. U'ed, dimonnloii8 of Flumo«, &e., an 1 Macliinoiy u."*c'tl in tho Milln of tho Siib L-'khcos by till) Coinpiiii}'^, 830il pur aiinnn. tion of Wheels in Use. Name. Tyler Centre discliaige do liitlli? (liant Leifel , Little Giant Leflfol Centre discharge do Little Giant . Leffel Americaji Samson Q a N o5 in 48 60 32 33 S<|. Inches of Vent or Gate oil Wheel. Head. 270 288 141 66 18 48 30 50 33 48 42 27 .a is fl o bo e •a u 3t -3 oj n n 11^ Water Di«- charijecl and I'ower. ft in 9 9 9 12 200 14 (' 14 U ft in 12 9 12 9 12 9 12 3 12 6 12 6 u a. '^ . V — S-2 5 = 1 ~ y 2 iota 03 271 29 1 14 53 94' 96 11 6 12 U 6 12 Out down to vent of 36" wheel. 96-26 12 13 6 12 22 22 13 12 3 12 6 120 32 50 23 16 49 50 76 15 124 33 50 22 16 52 50 Dimtii- aions of Flume. ■a fl in 9 a Dimensions ; Diiia'ii.sioiis of Penstock. B ft ill ft in 6 16 ft in 9 ■a Cu Q ft in 10 of Tail Rnco. J3 H-5 ft ill 11 0:4 10 12 7 U 12 6 7 6 I 9 4 6 6 8 11 6 6 4 3 5 6 6 6 6 C 10 2 6 9 6 1 9 18 11 6 8 10 12 18 6 8 10 12 4 14 14 12 12 15 12 22 CQ if o 5 CI Q ft in 1ft in 5 7 10 11 6 11 4 2 !o 10 3 1 8 10 4 3 1. 150 St. Catharines Table of Water Wheels, approximate discharge of Water, number Name of Leasee. W.H. Mer- ritt & oth- ers. do do do Name of Sub-Leasee or Occupant. Jas. Norris. . do Situation of Mill. Date of Lenac do ... do do ,„ do ... do ... C. P. Mins. . Q. B. Towers H. A. King.. McKinnon & Mitcliell. Bligh & Co. J. Grobb . O. N.Oille. do do do do do do do do 00 Hydraulic S 21 Race «< Description if Mill. Mill No. 2. Grari tham Flouv Mill. Pump Works Cotton Brt- ting Fac- tory. Farmers' Custom Flour Mill. .-'piike Works Paint Works F u r n i t u re Factory. MarineSteam Engine Works. Deacrip ^ . V J S. §1 Description o a. ^ of Machinery o ers, &c. routo. 3 runs, bolts, smut mill, pu- rifier, Ac, «c. 3 •• Being fitted up. Wilson k Co., Picton Iron and stone paint mills & 11 mixers. Wheel not in useatpres'int. Lathes, drills, planers, Ac. 40 334 ■ah 151 Catharines ter, number Deacrip Maker. & McCulloch, do .. e, St. Catha- t Hunter, To- ft Co., Picton Water Power Co, of Horse-powors used, dimensions of Finmea, &c -Continued. tion of Wheels in Use. Head. Name. Archimedean do Forrneyron. Tyler a ai 5 a CO in 42 30 Sq. Inches of Vent or Gate on Wheel. 26 Wooden bucket centre discharge Little Giant... Overshot . do 18 36 72 14 do 31 l: X 4 ft 8 in 13 X 6 ft 12 X 5 ft 5 in 81 192 252 185 SB a ft in 22 22 OI 3 ft in 18 Water Dis- charged and Power. £ he 3 « 14 216 12 264 14 12 3 15 3 16 It 19 2 6 15 45 28 d A 40 i'. -<-> 4.3 O 3j sS Ul 0^ -^ o 0) a, m rn v o 69 25 33 11 304 105 25 39 14 11 1028 Diniea- sions of Flume •a Dimensions of Penstock. a ft ill ft in 8 6 9 3 5 7 6 2 3 9 a ft in 12 9 -a Dimensiona of Tail Race. o Q I -= So c % - 33 02 312 312 312 198 640 900 648 480 150 360 504 Head a c o ho ft in 7 7 7 7 5 6 7 8 6 6 6 6 7 6 G 7 7 ft in Water Dis- charged and Powe'- 8 8 8 8 8 100 48 75 35 62 53 33 42 72 m ^ ^ .O .So Remarks. 60 33 20 23 38 5U 20 20 42 15 30 33 21 22 10 42 30 295 215 Flumes, &c. , in bad condition; wheels poorest description and waste water. Flumes, &c., in bad condition ; wheels WH.stc water and of the worst description. Saw mill unoccupied ; flumes, &c., in bad condition. Wheel doct? not require full gate to run machinery. Wheel of most primitive descrip- tion, and waste wacer. Wheels inefficient, and waste water. Wheel poor and wastes water. 164 WELLAND Statement showing the various Descriptions of Machinery at present in and Races, Consumption of Water and Amount Where Situated. Duiinville, west side of river. do do West side of dam East side of river East of new flume do Adjoining Ghisholm & Co. single mill. do do ... Opposite G. Lock Adjoining saw mill At Marshville do Port Robinson Allunburgh do ao do Thorold do do Head ofhydraulic race Opposite Lock No. 6 St. Catharines, hydraulic race. | Mill Owner. Beard & Johnson do do R. McDonald, occu- pied by Philps. A. Thompson Chisholm & Minor.... do do Weatherby do H. Davis do Beard of Works do do do do do do Geo. Keefer Cowan & Park J. Chahoon Brown &-McDonald... B. F. Reynolds O.Phelps a o •c Number ofSawsorRun of Stones. Grist.... Saw do Flour.... Saw do Fulling.. Carding Saw Grist. ... do .... Saw Grist.... do .... Saw Carding Fulling.. Flour... do .... Cement, do . Turning Flour . . 1 run stone.... 1 saw 2 saws 3 runs stone .. 2 saws 1 saw 1 fulling mach 2 card do 2 saws 1 run stone. . .. 1 do 1 saw 1 run stone.... 2 runs stone... 2 saws 2 card mach... 1 fulling mill. 4 runs stone.. 2 do 3 do 1 cracker and 2 runs stone. Circular saw. . 6 runs stone & fulling mill. m 'a 17 17 1.) IG 7 15 (' 18 9 9 6 11 3 11 5 9 7 7i 11 '^ELLAND present in i Amount Wheel. =3 Diameter ♦J 1 CO ft. in. ft. 6 6 n 3 3 5 6 1 3 3 2 6 6 10 1 3 •••••• 5 6 ■ 14 9 5 6 9 16 6 13 11 3 8 6 6 2 17 17 15 IG 7 IS 18 11 5 9 7 J* 155 CANAL. operation on the Ime of the Welland Canal, with dimensions of Flumes of Rent, &c., &c., 28th January, 1847. J^iumes a o o 0^ 34^ 160 160 45 160 160 -3 a o a 160 34J 7 140 6 ^ 150 60 50 5 6 H 9 10 1 » ft. in. 5 6 5 9 7 6 6 6 8 7 5 5 7 8 2 7 3 4 14 14 14 4 2 6 3 9 1 2 6 (4 a a 600 538 408) 408 J il 340) 340 )■ 420 J f 269) 1 269 J 538 100 64 f 2^9) [ 538 I 600 100 200 100 360 2001 200 J 48 48 480 270 100 300 60 336) 480 J a O ft. Size of Race. 01 19 28 a 03 O aj M a Q 5 4 5 5 5 6 4 4 4 6 30 16 4 30 30 6 9 9 5 4i 18 4 3 3 4 15 3 27 10 12 ft. 3 ft. 19 19 28 20 23 20 Rent. 37 Jt' .s 50 50 50 (i 50 25 12 10 62 10 30 16 03 o Remarks. ■m The water should be stopped until the back rent was paid. do do 6 i Ihe water should he stopped until tlie rent is paid. These mill have been the subject of repeated com- plaint from Jlr. Power. The flume in bad condition and ought to be shut up until the back rent is paid and the flume pro- perly constructed. 16 250 Will be cancelled Lake Erie level. on adoption of 10 Free... 50 12 10 37 10 Free.., 1 Free. The first mill built on the canal. This mill must be moved to Bome other place in order that the race may be shut up. H'i' 166 WELLAND Statement showing the various Descriptions of Machinery at present Where Situated. Mill Owner. Description of Mill. Number of Saws or Run of Stonea. m o d t s Cm O a o ••3 a, 'E 1 5 ■a cq On race helow Phelps Mill. do do do do .f. Gib.'on Wool factory A.\e fac- tory. Foundry Flour... Triiiilng Flour... Pump factory Salt 3 card mach. & fulling mill Grindst'ne pol- ishing and turning lathe 5 lathes and fan. 3 runs stone... Hark mill 6 runs stone... 3 lathes boring and pump fac- tory. Salt pumps, &c. 1 1 1 1 1 2 1 1 Overshot.. do ... do ... do ... do ... do ... do ... do ... ft. in. 12 12 12 17 10 18 18 18 ft. 5 J. Noble T. Towers r 3 ■do do Grrautham 11 do do ... do do E. G. Adams Stone Mill 6 10 do do J. Mills 10 do do Salt Works 3 Similar table to the preceding made 35 years ago ; a comparison of the two will St. Catharines, 28th January, 1847. KLLAND tt present ft. in. 12 12 12 n 10 18 18 18 13 ft. 6 3 11 6 10 10 the two will 157 CANAL— Continued. in operation on the line of the Welland Canal, &c. — Continued. I ■*-» 3j Cq ! Issue of Water in inches. (0 s, Cm o &, t sale of water-powers upon this canal. On the 12th December previous, Mr. Young had applied for the wholo of tho lands and wator privileges, at St. Gabriel lock, for an association of individuals •' binding themselves to acquire all the land.s and make the improvements necessary to utilize tho power. Tho parties with whom I act in this project, are anxious to have the entire control of the water-power of this section of tho canal." This application was referred to the Engineer of tho Board of Work3 for his report, in which he states: — " It appears very desirable, for tho general interests of 1* the country, to oncourago tlio formation of siich companies for Iho cHtablishmont of n\achinory, and iisiiiij Iho wator-powors along the lino of canals, ond it may oven be considorod advisable to give preference to tho application of companies over those of individuals, wIiomovcm', as in this instance, the companj- can ollor satisfactory evidence as regardii their capital and capacity of bringing tho vvliolo power into full opera- tion." As there were several applications of long standing for privileges at this lock, ho considors there is no way lelt, according to the custom of tho Department, where there are several applications for a property, but to sell at public auction. On Mr. Young's a])pUcation, there is endorsed, " the Commissioners are favorably disposed to the proposition of Mr. Voung, but ho must bear in mind that there is as much surplus water at this lock, as any other in proportion to the fall, each one of which will doubtless be rented, he must:, therefore, govern his offer for the privileges accordingly." (Signed by the Chief Commissioner.) Tho two points, in this endorse- ment, are that ho was not a good authority, for shortly afterwards he was tho applicant for a similar monopoly; and that he intended tho full value should be obtained for tho piopei-ty, a fact which will bo commented upon hereafter. On the principle of granting monopolies of water-powers at locks, and the report of tho Engineer of tho Dopartmoiit thereon, a Hub.soquont Commissioner (Hon. John Young), whoought to bean authority', being himself one of tho Lessees of a monopoly, held a contrary opinion to his engiiicer, and refu.scs a similar privilege to Mr. Merritt who had proviousl}', when Commissioner, reported in favor of Mr. Young's applica- tion. OflScc of tho EoarJ of Public Works, 19th February, 1852, John Young, Commis- sionor: — "The Commissioners having also considered tho proposition of Mr. Mon-iit, namely, to dispose of tho whole of the hydraulic powers to the intended com- pany while they cannot soo that there would bo greater stimulus given for employment of tho wuter-powor, by transfei'ring tho entire control to tho company as proposed by Mr. Merritt, the Commissioners are of the opinion that it would bo highly inexpedient that the Government should cease to have tho full and unrestricted control of the wator now available, on tho line of this important work." In answer to a letter of Mr. Morritt's, complaining of the action of the Commis- sioners, they again state, " relative to his complaint of not granting to the company tho entire water-power within the hydraulic limits, a duo regard for the public interests must prevent the Commissioners from agreeing with Mr. Morritt's pro- position." With regard to the advertisement for sale by auction, previously mentioned, on the 28th January, 1851, it appears with the date of sale changed from tho 3rd February to tho 12th February. On the 2.'{rd January, the Secretary of the Department, had written to tho Queen's Auctioneer to have tho sale of lands, &c. , postponed until tho 5th February next. Tho Secretary requests him to draw, public attention to tho same, to have large placards posted about town at Lachine, and at tho church doors. The mail at that date was some three days going from Toronto to Montreal, the change of date of sale was tho result of this letter, the authority for altering tho dale from the 5th February to the r2th February, does not appear in the records of the Department, as far aa I can discover. On the 12th February, 1851, tho Assistant Commissioner became Chief Commissioner. I find by a notice in the FUot of that date, and other evidence, that the Chief Commissioner arrived in Montreal on the 1 1th or 12th February. The sale took place upon the 14th February, a further postpone- ment of two days, for which there was no authority fi-om the Department. Of previous, and subsequent sales, tho Queen's Auctioneer sent olliciai notice of tho sale, tho names of the parties, and tho prices at which they bought. I can find no document of this description. Tho only record of this ealo is a report of the Chief Commissioner dated Toronto, Itth April, 1851, it was not entered in the record book of letters, or documents, lo- ceived by tho Department, at that date, but was found eleven years afterwards, in I « blishmcnt of imiy oven bu over those of )iy evidence J lull oporu- it thifl lock, .monl, where 1. lire favorably i there is as each one ot lie privileges this entlorso- he was the luo Hhould bo cr. lid the report 1- (Hon. John [ a monopoly, Mr. Merritt .ng's applica- ung, Com mi s- t' Mr. Merrilt, itendcd com- us given for the company it would bo 1 unrestricted ' the Commis- the company r the public [erritt's pro- ncntioned, on roni the 3rd ,0 the Queen's bruary next, o have largo Montreal, the ring the date }cord8 of tho .ho Assistant Filot of that alon the llth ler postpono- nt. sont otViciiil y bought. 1 atod Toronto, ocuments, ro- ifterwardy, in 3 lft(i2; as an important document it was entered at tho bottom of a p:ig(*, correspond- ing to its (hito, as No. I."!lt22i. 1 tind a copy of this roi)ort, although not u ropoi'l to Cuuncnl, in a book containing those reports. There is a cancelled report. <\v'.oi\ \'tl\\ April, IHal, Xo. 1037, and some ])agos fui'tlior on another report, dated 2uh April, No. 10311, those copies are in tho same handwriting. Iletween those two, in another handwriting, there are copied a report to the Commissioners, dated Jan. 14th, 1851, on tho survey of tho Kapids of tho St. Lawrence, by an Engineer ot the Departments, numbered 1038, (this book is devoted to Reports to Council); and tho report of this sale as number 1038J, date 17th April, 1851. A portion of tho report ia written upon the margin. It is evident a number of pages had beoii left blank for some purpose; a document, which had no place in this book, dated three months previous to tho reports, botwocn which it was copied, and which was printed in the Annual Jtoport of tho year, inserted to fill tho I ^ space. There was not room left for tho other rcjioit, so tho margin was made use of, showing it was not copiotl at its date, but copied subsequent to tho 2lth April, and it never was a report to Council. Tho Chief Commissioner makes the following ropoi't, that he has sold and leased upon the Lachino Can.-d — Lot Xo. 1,— Henry Jones & Co., price £ 2G0 do 2,— W. Murray do 240 Lots 3, 4, 5, (),— John Young do 1,140 do7, 8, 9, 10,— A. IIooker&L. H. Ilolton do 1,140 A tract of land north side of Lachine Canal, Coto St. Paul,— P. Turcott price 808 All tho entire surplus water, disposable, arising and flowing, from tho level of tho Lachine Canal, at and above tho St. Gabriel Lock ; and the whole of tho land not necessary for canal purposes, near tho said Lock, to Messrs. Young tV Gould, for tho sum of 420 Lot No. 17, — W. Lyman & Co., per annum 107 10 do 18 ct 10,— Grant and Hall, do 215 do 1.5,— T.D.Bigclow. t Wife do 107 10 do 10,— Holland ct Dunn, do 107 10 do J.!)- James Harvey do 27 10 do p,— T.Peck do 27 10 Dock & Shipyard, power attached do 251 Whatovor time, and recognition, have done for this'aalo, at tho date it was illegal, and tho instruments drawn up, neither the acts of the Department, or Government, from their not having tho countersign of the Secrotai-y or the authority of Council. One of these properties sold to Turcot, little was paid upon it, there have boon claims for damages from tho Guvornraont for leakage from tho Canal, amounting to con- siderable sums, the occupant now proposes to sell back to tho Government. Taking into consideration the St. Gabriel Wator-Power, and omitting any further roferenco to the other properties, specifiod in the report, it is necessary to determine what was actually sold and bought by Messrs. Young Sc Gould at this Auction, in con- tradistinction to what was leased by the Commissioner. Tho following account of this sale is taken from tho Montreal fi<, for 21 years at i;250 per annum, — Mr. Tato. The farmH advertised woro not Hold." A newspanor notice may not bo legal evidence bill when corroborated may have weight. Wo liuvo Iberoforo tlicho two Htatemontfl. "Montreal Gazotlo," — 5 mill nites and 20 runs of stonort at ,£420 ]ier anmiin. Chief Commissionoi's Jteport : — All tho entire surplus water, dis|)Osal)!n, arising and flowing, and all the land at £420 per annum (or the name price). This jjioporty was advoilised to bo sold in lots, on 3rd October, l^.'iO, anf tho lease. te iBCOrroi'.t, i of Messi'S. lut when tho indly given may bo of do ; ho also ) auctioneer, :o the entire he Eri^i^inccr same date jnco of its :hat certain 1 tho waste ly submitted, ■nangement, for grantin^^ ole privilege -" It was at Jvertisement r then camo ro. 3.) dated I \^ v.: 12th Docembor, 1850. This offer was referred to mo for report, and I made the report No. 4 now produced. The document produced No, .5, is a report 1 drew up on the 15th January, 1851, for the purpose of hiying the scheme before the public. Tbo conditions were to bo seen at the sale." Document No. 5 was tho missing report, wo have iiero the statement that this appendix was written upon the 15th January, 1851, as tlie conditions, and regulations, with the original view of leasing in separate lots, and the conditions, and rcguhitions of this appendix for leasing the entire surplus water and land, are included in the same document. It is anomalous th.at tho Sccretar}^ of the Department would send all these con- ditions, and regulations, together with a plan of the [iroperty laid out in lots, upon 15th January, 1851, to the Queen's Auctioneer, that on tho 2'^rd .lanuary thf Secretary should instruct Mr. Ostell to obtain fioin tlie Queen's Auctioneer tho plan and lay the property out in lots, that ho should notify tho Dopartmen upon the 29th January, of his having done so, that parties should bd seeking information, as to tho boundaries of tho lots, from both the Auctioneer :ind Mr. Ontoll, Avhilo at the time, the Department, and tho Auctioneer, had in their jwssessiou this appendix with con- ditions, and regulations, for selling, and leasing, all the land and water. It is evident, from what has been adduced, that this appendix was not writtiMi upon the date assigned, nor before tb*^ date of sale, at least it w:is not an ofTici.tl document; and that tho property was sold upcm the Chief Engineer's rcnoi-t of 21st December, 1850, in which ho recommends tlie sale of 5 mill sites and i'* inns of stones ; and not upon this appendix, (a change of opinion in less than a nionll alleged to have been made on the 15th January, 1851, which says, — " in consequence of it having been intimated to the Dopia-tment, that certain paities are desirous of purchasing the right of using all the waste hmd, and surplus water," (the ail is under lined as if it were necessary to draw special attention, that it was all). It would be interesting to know ho date of this appendix, in an account of Mr. Ostell's, he specifies day and date, lor all work done fir the Department. From .fan. ;^lBt to February 4th ho was surveying, laying out, and picketing ofl', hydraulic lots, at St. (jrahriel, and Cote St. Paul. From 5th February to 12th February ho wa^ plotting and making plans of hydraulic lots, at St. Gabriel and Coto St. Paul, consisting of four different plans, making fifteen lots. On 11th Februarj' he charges for services with tho Commissioner of Public Works, on tho day after he finished tbo plans with the property as laid out, to bo exhibited at tho auction, showing that tho change had not been made at that date. J"'rom 22nd Fel)ruary to 2Tth February, compiling and making out largo office plot ot part of St. Gabiiol, showing the relative position of hydraulic lots, including streets, canal, locks, anil, various parts abcAit to be conceded to Messrs. Young & Go'dd, and copy delivered to annex to lease. On iho 27th, thirteen days after the d-.to ,)f lease, parts wore about to bo conceded, tho appendix of tho missing report had not appar- ently reached Montreal at that date. This gentleman would have ovety opportunity to ktiow every thing connected with, this transaction, being a connection of the Chief (Jommissioner, and engaged with him in mutters concerning this sale, from Februaiy 11th to March 15tb, ho, as will bo shown subsequently, w.as probably a silent partner in the lease at this date. Tho plans of the lots laid out by Mi'. Ostell at Coto Si. P.aul, are in this office, but nono can bo found of tho lots laid out at St. Galu-iel at tho same time. In the absence of plans, it is not easy to determine tho position, positively, of tho live mill sites sot out. As shown by the following sketch, three were on (Jovernraent propoitj', and two, the greater part, on land that was to ho acquired by the Government. The upset price for these lots was <£1(J0 rental per year, the (iovernment to purchase tho necessary land. Tho price for a run of stones was £12 10s, per annum. As already stated tho original i)lan according to which these lots were laid out, is not to be found; from their description in report of January l."»th, 1S51 ; information derived from Mr. Ostcll's letter announcinj; he hab laid oil iho lots, and asking if there is any aKoration roquircd in M'hich tlcro is a ■an n. 6 uttachcd to the Rkotch, upon tho margin, of tbrco lots; also from a copy of plan, u Notarial inRtrumenl, obtained in Montreal, tho following Bkotchos aro made iNocariai inRirumeni, ooiaiiieu in luuiurtjui, mo lunuwiug eivuiouuo .nu uiau^-hatch('(l in sketch), and all the surplus water. chcd to the iro uiadc ; 1 wh;it was at tho sale, 'epjirtment. ns of stones 1 the land, » \ I \ On sketch No. 1, Dock Lots Noh. 1 and 2, ov LjLs No.s. 25 and 2 ], woro .aid out I'of dry docks. The dotted lino represents the limit of the canal propo)'ty. The whole of the land for No. 2 dock lot, and the greater part for the mill lots Nos. 27 and 28, were to have been acquired by the Commissioners of Public Woiks. The upset price, for these lots, was £100 each, for the mill privileges, and £150 each, for iho dock lots, all the lots had four rutis of stones attached, or twenty-eight runs in all. The total upset price of this property was £800 rent por annum. It all the lots had been purchased at the sale, the parties purchasing to acquire the land, tlio rental would have been : — Three mill sites, land upon Government property, at £100 £300 Two do I do do do Ground rent, at £10 20 Eight runs of stones (to the two lots), at £12 lOs 100 Total yearly rental £420 Dock Lot on Government property 150 Four runs of stones for lot not on Government property 50 Total for the whole privilege £620 Tt is strange that if the account of sale, in the Montreal Gazette, and the corrobora- tive statement of Mr. Cantin, is incorrect, anc' the report of sale by the Commissioner correct, that the yearly rental corresponds with the upset value of lots, established b}* the Board of Works £120 per annum. It is clear that in whatev-er light this transaction may be viewed, the Government have, during the tenure of this lease, received only the value of fivo mill sites and twenty runs of stones, and not of «// the land and water. That the previous Chief Commissioner, who made the reports to Council, which led up to this leasing, intended to obtain the full value of the privilege, is evident from his endorsement on Mr. Young's application. Mr. Ostell's in his evidence before arbitrators, October, 18G3, states : — " I was present at the original sale of wator-pjwor at St. Gabriel lock, full conditions had been prepared by the Government, and the property was to be offered in lots. General conditions were then submitted, to the best of my recollection, identical with those in Exhibit No. 2 (sale by lots 22nd December, 1850). Those conditions were afterwards modified, and No. 5 was substituted, when the sale en bloc took place, t(» Messrs. Young «& Gould." No. 5 was the missing report with appendix attached, that it was substituted on the l4th February, 1851, the date of sale and the date of lease, does uot agree with his account, paid upon the 15th March, 1851, when on the 27th February, he uses the words about to bo conceded. Hon. John Young, at the same time iu evidence, states : " I remember the hydraulic privileges advertised, and certain conditions read over by Mr. Bernard, the Auctioneer, at the sale, plans of the property being then ]>roduced for itspcction.' These plans must have been thoseof the Cliiof Engineer, and .Mr, Ostell, the Surveyor. with the property divided in lots, as he states, he had finished them on February 12tli, He had completed only on the 27th February, thirteen days after the sale, the plan annexed to the lease. There wore many applications for mill privileges at this lock, some of which were graatetl, and afterwards refused, there seemed a deliberate intention cf all con- cerned to firmly establish this monopoly, and the anxiety betrayed to draw attention to the fact that these Lessees were propi'ietors of all the land and water, shovvs there must have existed somr doubts as to this fact. On the 5th December, 1850, an official letter grants the privilege of constructing a dry dock, and use of water above St. Gabriel Loek under certain conditions. The ajiplication was dated ICth November, 1850, there is endorsed upon it over initials of 10 ^ Iho Aasistant Commirtsionor, " (ho rcoommondation of Mr. Eiibidge cannot bo carriod out as tlio ontiro of tlio water has been already disposed of to other parties." At the dato of this application the Assistant Commissioner was Superintendent of the Wolland Canal. TLo returned to the Department upon the ir)th February, 1851. This ondorsomo'it was made subsequent to this dato, the ijranting of this privileu;i> was not a recommendation, but a letter addressed to the applicant, and recorded In the books of the i)opafltnent, previous to the date cf this lease. Jn 181." I 'iii, Mr. A. Cantin applied for a dry dock privilege, with water-power attached, a ;in was seal in, showing the propased improvements, and roforrcd to Mr. Jiarrett, the Engineer upon the Canal. This plan is upon record in the Department. On the 15th November, 187)0, Mr. Cantin writes : — "Seeing you have advertised a piece of land which I made application for tive years ago, 1 want to know if I could get it for t!ie use of making a dry dock." On the 10th Jinuary, 18.")1, ho transmits a plan to the Secretary of tho Public W^orks, and application for this privilege, and trusts it wi'l rocoivo the favorable con- sideration of the Commissioners. On this application there is an ondorsation, erased, made by the Commissioner, and tho note (" l!)th March, 1S52, answered") substituted, it was referred to the Engineer of the Department who reports in favor of tho appli- cation, but to accede to it Air. Cantin must comply with certain conditions, the iirst of which is :—" The Commissioners having leased all the wale." passing around the Lock at St. Gabriel to a company, it will bo necessary for him to obtain from that company, the privilege of using all tho water he may require both for his mills and dock," In accordance with the directions of the Chief Commissioner an agrceinont is drawn up by the Chief Kngincor and signed by Mr. Cantin on the lOlh July, l?!.'il, with above provision on it. Afterwards Mr. Cantin desired that no further action bo taken until ho writes again upon the subject. Mr. Cantin, was no doubt acquainted with tho manner in which the -property was leased, for on tho 25th October, 1851, permission was given him to construct liis proposed works, and an agreement entered into by tho Commissioners and Mr. Cantin, in which the clause, compelling him to obtain from Messrs. Young & Gould, the necessary water-power, is omitted. A coj)y of this agreement is sent to the Department by Mr. Ostell, on the 8lh March, lb52, who writes, Mr. Cantin only awaits thoir embodymcnt into a lease to commence the execution of hii* works. In tho mean time one of tho Lessees of this wator-powor had bcc(jmo Commissioner of Public Works. On the 16th March, 1852, Present lion. John Young and LIf)n. 11. 11. Killaly, Commissioners, it is recorded in tho minutes of the Uoard of Works: — "Upon tho lettoi- of Mr. Ostell, inclosing a memorandum of agreement which ho states to have arranged with A. Cantin (tho agreement was between tho Commissioners of Public Works and Mr. Cantin), relative to a water privilege at St. Gabriel, state that Young & Gould had leased on tho 14th February ''^•tI, the cnti'-e surplus water, that Mv. Cantin's first application was made only upon tne 10th and received on the 20th June," 185 L (The Iirst application, as previously noticed, was made in 1813 or '40, and again in November, 1850, in reforeuce to tho advertisement of the Bo.ard of Works in October, 1850.) " That lion. Mr. Bourret had reported 17th April, 1851, that ho had leased the whole surplus water to Young & Gould, tiiat the Commissioners find a r^qiort of Mr. Kcefor of iho 30th June, 1851, statingas tbllows: '• The Commissioners hiiviiig leased all tho water-power passing around the Lock at St. Gabriel," and again in a subsequent report of iOih .luly : "Mr. Cantin must obtain from tho Companj' at St. Gabriel, the privilege of using such water as he Jiay require,'' and in tho same report Mr. Ivccter states that : " Mr. Cantin bad nquestod no further action \o be taken in tho matter until he writes again on the subject," from lOth July to 8th ,March nothing ha^ been received from Mr. Cantin. This gentleman had roquostod that no further action should bo taken upon the agreement he liad been induced to sign with Mr. Koofor, but on the 25th October, 1851, ho had taken such otfectual action, that tho Commissioners of Public Works, entered into an agreement with him to grant hira water for his dock, and a saw mill, 'I t bo carried i," At tho ont of tho uary, 1851. is privilo,LCi> >rilod in tliu rator- power irred to Mr. )epartmont. idvortised a / if I could Iho Public /orablo Con- xion, erased, .substituted, f tho appli- ns, the iif.st around tho n from that lis mills an(i agroeinoDt I July, lfc51, icr action bo L acquainted ;tobor, 1851, lent entered ling him to id. on the 8th .0 a lease to isecs of this arch, 18r)2, recorded in inclosin<^ a Cantin (tho |in), rolalivo on the 14th I was made 1), and again If Works in that ho had mors lind a bmissioners [" and again yorapany at 111 tiio same Iction lo be luly to 8th In upon tho |th October, lie Works, a saw mill, MfiS Bl 11 without reference to tho lease of Young & Gould. It is, therefore, evident that the minute of the Board ot Works is misleading. Upon tho copy of this agreement, submitted to the Commissioners, there is this note over the initials of the Assistant Commissioner : — " When these conditions were submitted to Mr. Killaly ho had not been informed, that the whole of the water- power had been previously sold to other parties." What is the effect of this note ? The lease to Young & Gould reads:—" Personally appeared, the Honorable Joseph Bourret, of Montreal, Chief Com.nissioner, and Hon. H. If. Killaly, of Toronto, Assistant Commissioner, as Commissioners of Public Works." This is a legal form, which perhaps only requires the presence of the Chief Commissioner,* as his is the only signature attached to the lease. Tho report of the Chief Commissioner is dated lt7h Api'il, 1861, on that date the minutes of the Board of Works, record the transac- tion of Dusiness connected with the Lachine Canal, present the Chief and Assistant Commissioners, no reference is made to this report dated the same day, the peculiarity of its entry among the Eeports to Council is noted previously. We have now the fact, that the Assistant Commissioner on the 25th October did not know the contents of a lease made eight months before, to which he is supposed • bo a party ; ho did not know the contents of this report made six months pre- viously, and on tho same date that both Commissionei's, being present, transacted business concerning the Lachine Canal. That on the 25th October the Chief Com- missioner, and Assistant Commissioner, signed an agreement in violation of the terms of this lease ; and tho Chief Commissioner, had not, or did not, at the time inform him that he had leased tho whole of tho water-power. The Commissioners, at their meeting on tho 16th March, previously, referred to, ordered a letter to be written to Mr. Cantin, informing him that all the surplus water had been disposed of, and he must apply to Messrs. Young and Gould for the amount of water required. As one of the lessees of this power was Commissioner, no further action was taken upon the igreement of tho former Commissioners. The result of this business Mr. Cantin bought a run of stones, from one of the lessees at Basin No. 2, which could not be returned into the canal, for his dock. The run was not referred to, in the investigation of the watoi consumed at Basin No. 2, as it did not make any diflferonce whether one, or four runs, wore sold, all the water wanted could bo drawn from the canal. The power he required was leased from Young and Gould, eight runs of stonos, and a lot of land. 1 )r $800 rental per annum, the water in justice belonging to the Govern ment,or a loss on this transaction of a revenue of $400 por annum. Tho incidents which load up to, and attendant upon the granting of this lease, as recorded in the Department, having been commented upon, the lease itself will bo investigated. A blank forn-. of lease, similar to that in use upon the Welland Canal, had passed through the hands of the Attorney General, and had been printed, adapted for the legal forms of Lower Canada This blank form was used for this lease, or notarial instrument, deposited in Montreal ; to adapt it to the changes, from sale by lots, to the granting of this monopoly, tho margins, blanks, und erasures, were used. The erasures and marginal references are numerous, covering all the blank space, and are the most important part of the document. The dates of the other deeds, and leases of property disposed of at that time, extended to the 15th March, r-iis was exociuted upon the day of sale llth February, it being the most importurt, and lengthy, tho celerity with which it was di-awn up is remarkable. The sale took place at near mid-day, it was quicker work than legal gentlemen usually indulge in, to have a document of that description ready for signature in the same day. Without tho sale was a deception, it was drawn up subsequent to its date, or the blank form signed on that date, and the marginal references and erasures made subsequently. That the plan, which is a portion of tho lease, (" tho said leased premises being bounded as above and shown on the plan hereto annexed, edged in red,") is anti- dated, is evident, from Mr. OstoH's account, which states that the copy was delivered upon February 27th, to be annexed to the lease. As the parts were about to be con- 2* 13 , coded upon that date, the Icaeo was mado aftor tho plan which would bo possible, as it was not ontorcd in tho IJogistrar's books at Montreal until llJlh March. The date of a portion of this report of tho Chief Enfijinoor's of January, 1H50, can bo supposed. Tho marginal references, and erasures, in tho lease, are himilar to iho conditions, and rogulalions, in this report, an'l must have boon (topiod fVo.n it foi- in