A derrick boat was employed from Hickler Brothers September 18 and 19, 1903, for 16 hours, at $5.50 per hour, in picking up 10 cubic yards of rock, the pieces having been dragged by towlines into a pile at the railway swing bridge so that passing boats were striking on them.

ACCIDENTS.

There was no loss of life from accidents during the year; and the only personal injury sustained was when Lineman Chapiesky had his hand crushed while placing cable on snubbing post.

There were 29 minor accidents resulting in damage to property, such as breaking 23 pieces of timber in canal piers, 13 pieces of coping from lock walls, 3 pieces of hand rail and gate decking, guard plate over cable sheaves; and in pulling out 4 snubbing posts along canal piers; shoving top timbers back and breaking 2 stones in concrete walk.

DELAYS.

Poe lock.-Navigation through the Poe lock was delayed during the year 35 hours and 43 minutes, as follows: 1 hour 40 minutes due to removing rope fenders lodged against miter sills of gates; 25 minutes waiting for tug to assist schooner out of lock; 28 hours pumping out lock to repack valve engines preparatory to substituting oil for water in pressure pipes; 38 minutes grounding of steamer on fender on lock floor; 20 minutes due to breaking of towline; 2 hours 15 minutes repairing broken cable on southwest gate; 1 hour 40 minutes to jamming of boats in lock; and 45 minutes putting in new valve in north intermediate gate engine.

Weitzel lock. The delays in this lock amounted to 1 hour and 35 minutes, as follows: 1 hour repairing broken cable bolt, and 35 minutes to jamming of boats in lock.

REPORTS.

Of the special reports the most important submitted was that pertaining to statistics of commerce passing the American and Canadian canals at Sault Ste. Marie, Mich., and Ontario, during the calendar year 1903.

Others related to modification of permits to water-power companies as to operations in the rapids, fire protection of United States property at canal, data pertaining to Detroit River commerce, classification and duties of employees, semicentennial celebration of the completion of the State Canal, and construction features and cost of locks.

PERMITS.

Under date of July 30, 1903, the Secretary of War modified permit issued to Edison Sault Electric Company March 10, 1903, in certain particulars as to operations in the rapids.

Under permit from the Secretary of War dated August 7, 1903, the city of Sault Ste. Marie moved the waterworks boiler across canal grounds and pier July 27 and 28.

Statistical report of lake commerce through canals at Sault Ste. Marie, Mich., and Ontario, for the fiscal year ending June 30, 1904.

NOTE.-The United States canal was open to navigation 225 days during the fiscal year. The Canadian canal was open to navigation 228 days during the fiscal year.

Comparative statement of commerce through St. Marys Falls Canal, Michigan, for the fiscal

years 1903 and 1904.

Summary of traffic through St. Marys Falls Canal, Michigan, for the fiscal year ending

June 30, 1904.

The Weitzel lock was open to navigation 198 days, from July 1 to November 25, 1903, and from May 12 to June 30, 1904.

The time for the Poe lock was 225 days, from July 1 to December 15, 1903, and from May 5 to June 30, 1904.

Compared with the previous fiscal year, the commerce through St. Marys Falls Canal, Michigan, shows a decrease in the following items: Passages, 32 per cent; lockages, 27 per cent; registered tonnage, 36 per cent; freight tonnage, 31 per cent; passengers, 2 per cent; coal, 12 per cent; flour, 36 per cent; wheat, 42 per cent; manufactured and pig iron, 20 per cent; copper, 22 per cent; iron ore, 37 per cent; lumber, 15 per cent, and general merchandise, 18 per cent. An increase of 3 per cent is shown in the item of grain, other than wheat.

In comparing the total traffic through the American and Canadian canals at Sault Ste. Marie, Michigan and Ontario, with the previous fiscal year, it shows a decrease as follows: Passages, 31 per cent; lockages, 25 per cent; registered tonnage, 33 per cent; freight tonnage, 28 per cent, and passengers, 22 per cent.

The August freight traffic of 5,403,808 tons was the maximum record, being 124,380 tons more than for any previous month.

The September traffic in comparison with September, 1902, decreased 407,882 tons, and was due to laying up of steamers by the Pittsburg Steamship Company on account of strike by Mates' Union.

A similar comparison of the October traffic shows a decrease of 142,326 tons, and was due to blockade at St. Clair Flats Canal by sinking of the steamer John N. Glidden. From opening of navigation this season to June 30, a decrease of 8,354,778 tons is shown when compared with the same period of the previous year; and was due partly to the late opening of navigation, but principally to the strike of the Masters and Pilots' Association, which was in force from opening of season to June 13.

The canal post-office delivered 109,566 pieces of mail, consisting of 96,703 letters, 4,966 postals, 7,260 newspapers, and 637 parcels. In addition to this, 670 pieces were returned to the city post-office after being held thirty days uncalled for, and 4,110 pieces were forwarded to new addresses.

The receipts from sale of 1,230 charts of the Great Lakes and connecting rivers amounted to $209.05.

The compilation of traffic statements was done by clerks Frank T. McArthur and John McMahon.

Very respectfully, your obedient servant,

Lieut. Col. CHAS. E. L. B. DAVIS,

JOSEPH RIPLEY, General Superintendent.

Corps of Engineers.

OO 4.

IMPROVEMENT OF HAY LAKE AND NEEBISH CHANNEL, ST. MARYS RIVER, MICHIGAN.

This improvement was commenced in 1883 and opened to navigation June 7, 1894. The result was a new line of travel through the St. Marys River, 11 miles shorter and 4 feet deeper than that previously available, and one which can be navigated at night with a reasonable degree of safety. The width of channel was 300 feet and the general navigable depth 20 feet; but the first step in the work had been in rock cutting through the Middle Neebish section, and there the bottom grade was about 2 feet higher than in the other parts of the improvement. Work since 1895 has been applied to increasing the width of channel at critical points, to the removal of some isolated shoals that have been discovered in the meantime, and to making the depth through the Middle Neebish section equal to that of the other portions of the improved channel.

The river and harbor act of June 13, 1902, adopted a project which provided for a channel of 21 feet available depth at low water and 1,000 feet width from St. Marys Fall Canal to the upper entrance to Hay Lake (Little Rapids), thence a least width of 600 feet to the foot of Hay Lake, thence deepening to 21 feet the present 300-foot channel to Mud Lake via Middle Neebish and opening a new 300-foot channel to Mud Lake via West Neebish, thus providing separate channels through this stretch for up and down bound boats. The total expenditures to June 30, 1904, are $2,738,081.39, leaving $1,221,033.61 available for further payment.

Operations for the present fiscal year are as follows:

In the Hay Lake channel the upper entrance was widened for a distance of 3,850 feet and width of 600 feet by the removal of 396,419 cubic yards, bank measurement, under contract commencing September 23, 1901, and ending November 16, 1903, and two derrick scows removed 3,046 cubic yards of bowlders and leveled off narrow ridges of gravel and hardpan.

By previous improvements the channel at the upper turn to Hay Lake had been made 18 feet deep for a width of 600 feet above and

300 feet below the angle. Now, for a distance of half a mile, both sides of the turn, there is a channel 21 feet deep at lowest stage of water, the width being 1,000 feet above and 600 feet below the angle.

Below the islands, at Little Rapids, the channel was improved for a distance of 10,200 feet by widening on the east side 150 feet to a depth of 21 feet, the work being done by contract between June 17, 1902, and November 3, 1903, the two dredges employed removing 957,528 cubic yards.

In January, 1904, a survey of this section of the channel was made through the ice, and examinations were made by swinging raft bars suspended at 21 feet grade, and before final acceptance the sections were covered without striking any obstructions.

In improving the Middle and West Neebish channels during the year isolated shoals were removed between the canal and Little Rapids so as to secure eventually a navigable depth 21 feet deep and 1,000 feet wide. A test cut was made through Bayfield shoal to determine the character of the material.

At West Neebish Rapids a contract has been let for the construction of a channel 300 feet wide and 22 feet deep for a distance of 13,300 feet through the rapids, with a stone retaining wall along each edge of the rock cut. About 6,000 linear feet of the cut is to be inclosed by cofferdams and the included portion of the channel excavated in the dry. Preliminary work was begun May 16, 1904, and at the close of the year the contractors had made good progress, an intermediate cofferdam, the commencement of the upper dam, roadways, framing of cable towers for the telferage system, boarding houses, store, dock, and assembling of plant being well under way.

At various other portions of the improvement of this waterway 357,073 cubic yards of material, bank measurement, have been excavated and channels correspondingly improved, and many surveys have been made.

The work was in charge of Assistant Engineer Joseph Ripley, to whose report, hereto appended, attention is invited for the detailed description of the work at each locality.

Money statement.

July 1, 1903, balance unexpended

June 30, 1904, amount expended during fiscal year, for works of improvement

July 1, 1904, balance unexpended

July 1, 1904, outstanding liabilities

July 1, 1904, balance available....

July 1, 1904, amount covered by uncompleted contracts...

$1,364, 120. 68

a 143, 087. 07

1, 221, 033.61 35, 300. 82

1, 185, 732. 79

3,780, 068.33

(Amount (estimated) required for completion of existing project...... 3, 200, 000. 00
Amount that can be profitably expended in fiscal year ending June
30, 1906, for works of improvement, in addition to the balance un-
expended July 1, 1904.

Submitted in compliance with requirements of sundry civil act of
June 4, 1897.

500,000.00

a Includes $0.84 paid by Treasury Department, account of Michigan Central Railroad Company.

ABSTRACTS OF CONTRACTS IN FORCE DURING THE FISCAL YEAR ENDING JUNE 30, 1904.

Contract dated September 16, 1901.

Name of contractor: Henry Hickler, Sault Ste. Marie, Mich.

Amount and character of work: $131,881.43; dredging section 1, Hay Lake channel. Price per unit: 56 cents per cubic yard, bank measurement (full rate), and 28 cents per cubic yard, bank measurement (half rate).

Date of approval: September 30, 1901.

Date of beginning of work: October 12, 1901.

Date of expiration (as extended): Indefinite. Completed November 16, 1903.

Contract dated June 5, 1902.

Name of contractor Chas. Simono, Two Rivers, Wis.

Amount and character of work: $90,799.44; dredging section 3, Hay Lake channel. Price per unit: 12 cents per cubic yard, bank measurement (full rate), and 6 cents per cubic yard, bank measurement (half rate).

Date of approval: June 28, 1902.

Date of beginning of work: About August 15, 1902.

Date of expiration: About June 2, 1904. Completed November 3, 1903.

Emergency contract dated November 7, 1902.

Name of contractor: The Lake Erie Dredging Company, Buffalo, N. Y.
Amount and character of work: $32,544.50; time work by dredging plant.
Price per unit: $17.50 per working hour.

Date of beginning of work: November 24, 1902.

Date of expiration: About November 2, 1903. Completed November 10, 1903.

Emergency contract dated November 7, 1902.

Name of contractor: Samuel O. Dixon, Milwaukee, Wis.

Amount and character of work: $15,532.80; time work by dredging plant.
Price per unit: $18 per working hour.

Date of beginning of work: November 18, 1902.

Date of expiration: About October 20, 1903. Completed July 23, 1903.