the Pacific coast A map was subsequently filed showing the location of the road from Springfield, Missouri, to the western boundary of that State. Upon the basis of this map the Commissioner of the General Land Office was directed to withdraw the lands. The 18th section of this act authorizes the Southern Pacific railroad, a company incorporated under the laws of the State of California, to connect with the Atlantic and Pacific railroad near the boundary line of California, and gives it a similar grant of lands. The latter company filed an acceptance of the terms and conditions of said act, and a map showing the preliminary survey of the road from San Francisco to the Colorado river. The Commissioner of the General Land Office was instructed to withdraw the lands along the line represen ed upon that map.

The bridges across the Big Sioux river and the Vermillion, on the line of the wagon road between Sioux City and the mouth of the Big Cheyenne, have been completed. The James river bridge is unfinished. The balance of the appropriation is twelve hundred and fifty dollars ($1,250.)

I have declined ordering a resumption of work on the projected road from the mouth of the Big Cheyenne to a point on the Niobrara road, in consequence of the hostile attitude of the Indians. The unexpended appropriation applicable to this road is twelve thousand one hundred and fifty-seven dollars and seventy cents ($12,157 70.)

The Superintendent of the wagon road from Virginia City, Montana, to Lewiston, reports that it is impossible to grade and open such a road between those termini, and that a construction of one for a part of the distance would be of very little utility, as there is no local business. His efforts were directed to opening a track for the passage of loaded pack-trains; that being the only method by which goods could be transported from Columbia river to Montana. There remains of the appropriation, unexpended, eight thousand and twenty-five dollars and twenty-four cents ($8,025 24.)

The architect in charge of the Capitol extension reports the completion of the portico of the south wing, and reiterates the opinion expressed in his previous reports, that the central portico should be extended to correspond with those of the wings.

The skylights of the halls of the Senate and House of Representatives are, on account of their great dimensions, peculiarly sensitive to variations in temperature, which occasion frequent fractures. It is proposed to substitute for them others of the same description as those placed in the Supreme Court room. There are serious objections to appropriating the committee rooms in each wing as depositories of public documents. They are needed for the uses for which they were originally designed, and the floors and walls are being injured and defaced. It is desirable that arrangements should be made for storing the documents elsewhere.

The chambers occupied by the Supreme Court, law library, and Court of Claims, and the passages between the Senate wing and the rotunda, are warmed with improved heating apparatus; but the rotunda and the old hall of the House of Representatives are cold and often damp in winter, to the prejudice of the

health as well as comfort of visitors. It is recommended that they be warmed in the same manner as the other passages.

If the Capitol grounds be extended to C streets north and south, as recommended by the architect, the Capitol would occupy about the centre of the enlarged area. It is universally conceded that the present limits are entirely too contracted. Justice to the adjoining proprietors requires that it should at an early day be determined to what extent their property contiguous to those limits will be needed for public uses. Squares numbered 575, 576, 687, and 688 were. appraised in 1860, by authority of Congress, as a preliminary step to their purchase. All permanent improvement of the property was suspended. The Senate subsequently passed a bill providing for the purchase of the squares, but limiting the price thereof to the appraisal of 1860. The value of real estate in that portion of the city has since then greatly enhanced. In view of these facts, the holders of this property have presented a memorial to this department urging that three disinterested appraisers be selected-one by the government, one by the property owners, and the third by these two; that Congress shall at once decide what grounds shall be purchased, and direct their value to be fixed by the appraisers. The propriety of early legislative action is suggested.

The work upon the north portico of the Department of the Interior is nearly finished. An estimate has been submitted of the amount necessary for completing it and paving the street.

The following statement shows the amount advanced to marshals of the United States for the year ending June 30, 1867; for defraying the expenses of the courts of the United States, including fees of marshals, jurors, and witnesses, maintenance of prisoners, and contingencies of holding the courts:

at a point on those hills six and six hundred and thirty-seven one-thousandths (637) miles west of Cheyenne, and, according to the railroad surveys, five hundred and twenty-five and seventy-eight one-thousandths (525,33) miles west from the eastern terminus of the road.

Upon a consideration of the report and the maps accompanying it, you concurred in the recommendation of the department, and ordered that the point so described should be considered, in the administration of the acts of Congress for the purpose therein mentioned, as the eastern base of the Rocky mountains. The Secretary of the Treasury and the railroad company have been informed of your order.

Reports from the government directors, dated July 23 and August 16, 1867, gave a very favorable report upon the location of the road and the energy with which the work was being prosecuted. Two machine shops were in full operation-one at Omaha, costing two hundred and fifty thousand dollars, ($250,000.) and another at North Platte, costing twenty thousand dollars, ($20,000,)— employing three hundred and fifty (350) men, with a capacity to make twenty (20) cars per week, and repair all the machinery and rolling stock of the road. At the latter date the company had thirty-five hundred (3,500) men employed in grading the road-bed, and four hundred and fifty (450) in laying the super

structure.

The company, under date of the 11th of October, report that the road during the present year would probably be extended to a point 537 miles west of Omaha, and that station buildings, engine-houses, water stations and the telegraph line to meet the wants of the road had been built. Shops and an engine house have been commenced at Cheyenne. The grading, masonry and bridging in the mountain regions were in active progress. The road has been definitely located 600 miles, and the earthwork will be finished to that point the present year.

The surveys of the line have been revised through to Salt Lake. A reconnoissance of the various routes has been made by the chief and consulting engineers, in order to secure the most favorable location which the topographical features of the country will admit. The Indian raids in the course of the past season have seriously interrupted the progress of the engineers. Great vigilance on the part of surveying parties, and their protection by military escorts, have been indispensable.

The total cost of the road to October 1, 1867, (unadjusted accounts with contractors not included,) amounts, according to the report, to.. $21, 757, 4SS 79

The road on the 1st of July, 1867, was in operation to Julesburg, 377 miles, and receipts from all sources amounted to. And expenses to.

Leaving the net earnings.....

$1, 015, 195 29

658, SSO 54

356, 314 75

The receipts of the road from travel, emigration, and the business of the region tributary to it were greatly diminished in consequence of Indian difficulties. The rolling stock consists of 53 locomotives, 15 passenger and 875 other cars. The company express their intention to prosecute this enterprise with the vigor and efficiency that have thus far characterized its advancement.

On the 24th of October last you accepted, upon the report of the government commissioners, a section of twenty miles of the Central Pacific railroad of California, terminating at a point ninety-four miles distant from Sacramento.

On the 28th of January last, the vice-president of the company filed a map. showing the definite location of said railroad from the Big Bend of the Truckee to Humboldt Wells. From the best information at my command, it appeared that this route possessed great advantages over all others, and I gave my "consent and approval" to the location, pursuant to the authority conferred by the second section of the act approved July 3, 1866, and forwarded the map to the Commissioner of the General Land Office, with directions to adjust the grant of lands upon the basis furnished by it.

On the 22d of July, 1867, this company forwarded to the department a map of a location from Humboldt Wells, via the north pass of Pequop and Toano mountains, the north point of the Ombe mountains, Red Dome Pass, and the north end of Salt Lake, to Weber river, a distance of two hundred and fourteen miles. The report of the chief engineer accompanying the map states that this line is the most direct and advantageous of the three that had been surveyed castwardly from Humboldt Wells. It appears that the highest point is six thousand two hundred feet above the sea, and five hundred and eighty-five feet above Humboldt Wells, and is reached through a narrow valley with a grade of seventy feet per mile. From this height the line descends with a nearly uniform grade of six feet per mile for thirty-four miles through the north pass of the Pequop mountains, and along the slopes of the latter to the north pass of the Toano mountains. From thence it passes along a valley from one-eighth to a mile in width to the eastern base of those mountains, making the descent of seventeen miles with a grade ranging from sixty-two to seventy feet per mile. Seventy feet is the highest grade found on the line, and it occurs for short distances at two other places besides those mentioned. No very difficult or expensive rock cutting is required on this route. I informed the company that I was not prepared to approve this location.

A report upon this road, dated October 7, 1867, has been received from the government commissioners. They state that it crosses the Sierra Nevada mountains one hundred and five miles from Sacramento, at an elevation of seven thousand and forty-two feet above the sea. From the point where it was then built nine hundred and seventeen feet only must be overcome to reach the sum

mit, a distance of eleven miles. Between the 77th and 137th mile-posts there are fifteen tunnels of an aggregate length of five thousand one hundred and sixtysix feet. During the past year about fifty miles of road have been in progress of construction; the greater part lying on the eastern and western slopes of the Sierra Nevadas. Eighteen miles of the portion on the eastern slope are graded, and the track is being laid at the rate of about one-half mile per day. By the time these eighteen miles are laid, six more will probably be graded and ready for the track-layers, making in all twenty-four miles east of the summit. On the western slope a larger force of laborers is at work, and it is believed that with a favorable season the grading will be completed and the track laid over the summit before the snow occasions a suspension of work. The company have not been able, during the past season, to procure the requisite number of laborers, but it is expected that next season this difficulty will be removed. There is on hand iron sufficient to lay one hundred and ten miles of track, and enough more in transitu to lay fifty additional miles. In the snow belt the rails used weigh sixty-three pounds to the linear yard, and are put together with fish-joints instead of chairs. At Sacramento, the company have erected, along the river front, wharves and derricks capable of moving an immense freight from vessels to the cars. There are twenty-seven locomotives in use, and twenty more, with material for two hundred and fifty cars, are on the way from Atlantic, ports. There is on hand material for seventy-five cars. Eight locomotives recently purchased are being set up. The company report to the commissioners that thirty-seven thousand seven hundred and thirty-eight acres of land, granted to aid in the construction of the road, had been sold for seventy-seven thousand five hundred and seventy dollars, ($77,570,) the greater part upon a credit of five years.

The following table gives the gross earnings and expenses for the years 1865 and 1866, and for 1867 up to September:

The net profit, therefore, over operating expenses in thirty-two months is the large sum of one million five hundred and fifty thousand six hundred and ninety six dollars and twenty-nine cents ($1,550,696 29.)

Since the commencement of business operations, the company represent that they have paid to the United States government for taxes, stamps, &c., the sum of two hundred and eighty-eight thousand dollars ($288,000.)

At the date of my last annual report the Union Pacific Railway Company, eastern division, had constructed its road to Fort Riley, one hundred and thirtyfive (135) miles west from the initial point on the line dividing the States of