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If the locks should be built as combined locks with the upper gate of the upper lock near station 14, a bed-rock foundation would be secured for the entire construction, and a wide and easy entrance to the canal could be made at less cost than by the other method. There would be no trouble about drift and ice coming into the canal, because the directions of the wind and currents are such, both in the winter, when the ice breaks up, and during the summer flood, that neither ice nor drift runs on this side of the river. The deposit of sediment is ordinarily very small, and would be about the same for either location. The lower location would obviate the necessity of building an expensive coffer-dam around the head of the canal, and would greatly reduce the cost of excavating the upper end of the canal, as this could then be done entirely by dredging. The total expenditure on the canal from July 1, 1881, to June 30; 1882, has been $73,351.86. 2. RIVER IMPROVEMENT BELOW CANAL. This work consists in removing rock from the projecting points of both banks, and depositing it in the bends, and in blasting bowlders and reefs in the river channels and either removing the debris or dragging it into deep holes, the object being to increase the water-way and ease the currents at places of difficult navigation. On account of want of proper appliances and of funds to procure them, and especially on account of the want of a suitable powerful steamer, but little work was done in the channels last winter. It is hoped that with the aid of the powerful tow-boat which was built at Portland, under your own supervision, last winter, the large bowlders which obstruct the channel at the Big Eddy Rapids can be removed as soon as the water falls to a low stage. During January and February the river was unusually low, and the conditions favorable for the work of river improvement, both channel and shore, and it was much regretted that the lack of funds prevented advantage being taken of this circumstance. This work can be done to so much greater advantage, and at so much less cost at the very low stages, that I recommend that preparations for such work be made in the fall, but that the work itself be not commenced until the river falls to such stages, and then prosecuted only during their continuance. The work on the left bank and in the channel was done by hired labor, and that on the right bank by contract. WORK ON LEFT BANK BY HIRED LABOR. Rock removal from the point near [triangle] 7 L was commenced the latter part of August, with one fixed derrick. About the middle of September, the same work was begun at points 2,300 and 3,700 feet below the lock site, with one traveling derrick at each point, and early in October a second traveling derrick began work at the latter point. The stone, previously blasted into convenient sizes for handling, was lifted by the derricks to dump-cars running on elevated tramways, which led to the bends either above or below the points. On account of the difficulty of procuring laborers a small force of Chinese drillers was employed. A 3-inch Ingersoll steam drill was used part of the time. Not more than half of the rock blasted has been removed. The statement below shows the amount and cost of the work done. Plant: Four derricks $1,000 00 Four hoisting-engines 4,905 00 One steam drill and hose 600 00 Nine cars 900 00 Track iron 400 00 Tools 200 00 Drills. 137 19 Freight 125 00 8, 267 19 Drilling and blasting: Labor 3,478 93 Powder, fuse, caps, &.c 622 60 4,101 53

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