CHAPTER IX.

TRANSFER OF THE CANAL AND LOCKS TO THE UNITED

STATES.

HE Legislature of the State of Michigan, in February, 1869, asked for a grant of $50,000 in money by Congress to deepen the St. Mary's Falls Ship Canal, because the depth of the canal was insufficient for the passage of loaded vessels of the size theretofore and then in use in the upper lakes, and vessels could only take on partial cargoes, to the great detriment of commerce, mining and other interests.

During the same session of the Legislature, by joint resolution approved April 3rd, 1869,1 it was recited that the immediate enlargement of the canal was a work of urgent necessity and national importance, and that the State of Michigan had no funds properly applicable to such purpose. The board of control of the canal was authorized and directed to transfer the canal with all its appurtenances, and all the right and title of the State of Michigan in and to the same, to the United States, provided the State should first be guaranteed and secured to the satisfaction of the board of control against loss by reason of its liability upon the bonds issued under and by authority of the act of the Legislature approved February 14, 1859, which provided for the repairing, preservation and operation of the canal. Congress, by an act approved July 11th, 1870, appropriated $150,000 for the improvement of the St. Mary's Falls Ship Canal and St. Mary's river, and with this the work of enlargement of the canal and the construction of a new lock was begun, and the improvement of the river continued. Between 1870 and 1878, $760,000 had been expended on the lock pit, walls and other portions pertaining to the Weitzel lock and in straightening the canal at its upper entrance. Captain Alexander Mackenzie, now Chief of Engineers, then temporarily in charge, at the suggestion of General Weitzel, in his report for the fiscal year ending June 30, 1878, stated: "The time has arrived when it is desirable for the good of the improvement that the management and control of the present canal should pass into the hands of the Government." In his annual message to the Legislature of the State, at its 30th regular session, January 2nd, 1879, 'Laws of 1869, Vol. I, p. 423.

Governor Croswell said that the canal debt was fully provided for, and would be extinguished as rapidly as it fell due, and before, if the bonds could be purchased, and that the financial condition of the canal was such that it might at any time be transferred to the United States.

The river and harbor act which was approved June 14, 1880, authorized the Secretary of War to accept on behalf of the United States from the State of Michigan the Saint Mary's Canal and the public works thereon: provided such transfer should be so made as to leave the United States

free from any and all debts, claims or liability of any character whatsoever, and that the canal, after such transfer, should be free for public use.

Hon. Henry W. Seymour, a Representative in the Legislature of the State of Michigan, residing at Sault Ste. Marie, was a strong friend of the interests of commerce, and on February 2, 1881, as chairman of the Committee on Federal Relations, he introduced in the House of Representatives a bill providing for the transfer of the canal, and the Legislature,

'House Bill No. 109.

by an act approved March 3rd, 1881, authorized the transfer of the canal, and further authorized the transfer of all material belonging to the canal and the payment to the United States of all moneys remaining in the canal fund, excepting so much as might be necessary to put the said canal in repair for its acceptance in accordance with the act above cited; provided such transfer of material and payment of moneys should be in consideration of the construction by the United States of a suitable drydock to be operated in connection with the Saint Mary's Falls Ship Canal for the use of disabled vessels.1

In pursuance of this legislation of Congress and the state, the actual transfer of the canal was made on June 9th, 1881.2 The government did not build the drydock, and litigation is still pending in regard to the surplus tolls.3

'Public Acts of 1881, p. 14.

2 Annual Report of Chief of Engineers, 1881, Appendix J. J. United States vs. State of Michigan, 190 U. S., 379.

CHAPTER X.

OPERATING AND CARE OF THE CANAL BY THE STATE OF

MICHIGAN.

HE Act of Congress of August 26, 1852, granting a donation of lands for the construction of the shin canal required that the canal should be and remain a public highway for the use of the Government of the United States, free from toll or other charge upon the vessels of the Government engaged in the public service, or upon vessels employed by the. Government in the transportation of any property or troops of the United States. Tolls, with the above exception, could be charged at such rate as the State chose until the State was fully reimbursed for its expenditures made for the construction, repairs and operating of the canal, with interest, and thereafter the State was authorized to tax, for the use of the canal, only such tolls as should be sufficient to pay all necessary expenses for the care, charge and repairs of the same. It further required the State to keep an accurate account of all the expenditures in the construction, repairs and operating of the canal and the earnings thereof, and to return a statement of the same annually to the Secretary of the Interior. By virtue of the Act of Congress and of the Legislature of the State in 1853 accepting the grant, the State of Michigan, in fact, "was made the trustee to carry out the purpose of the Act of Congress in the construction and maintenance of the canal." The Legislature of the State, in February, 1855, passed a general act providing for the care, charge and operation of the canal and the collection of tolls. The Governor, with the consent of the Senate, was thereby authorized to appoint a superintendent, who was to have the general care and supervision of the canal and property belonging thereto, and was required to receive tolls and keep account thereof, and he was given authority to employ such assistants as should be necessary for operating and keeping the canal in repair. Four cents on every ton of a vessel's enrolled tonnage or measurement was required to be paid before the vessel could pass through the canal. The board of control of the canal constituted by the Legislature, consisting of the Governor, Auditor

'United States vs. State of Michigan, 190 U. S., 379.

General and State Treasurer, was, however, authorized to establish other rates of toll after giving thirty days' notice in two daily papers published in Detroit and Cleveland, and to make rules for the regulation of the canal, which should be binding on the superintendent, who was subject to removal for cause, and in case of vacancy the office of Superintendent could be filled for the remainder of the term by the Board. When the canal was completed, the maps, plans, drawings and models, specifications and patterns

of the canal work were required to be delivered to the superintendent. A statistical record was required to be kept by the superintendent, showing the name of the vessel, captain, tonnage, place of enrollment, whether steamboat, propeller or sail vessel, and the tolls collected on each vessel. Experience developed the fact that the statistics obtained were not as complete as desirable. In 1857, the superintendent was required to obtain a statement of the several bills of lading or cargo, and in the course of time the reports