The officer of the Department of Justice appointed under the provisions of the act referred to to represent the interests of the United States in legal proceedings "for flowage damages hereinbefore described," acting apparently under the assumption that because the dams in question had not been lowered it was the opinion of the officer in charge that they should not be lowered, has had such surveys, investigations, etc., made as were deemed necessary by him to protect the interests of the United States, and under this action it is understood that, at the instance of claimants, judges of the circuit court have appointed commissioners to decide on the amount of compensation due, and the judges have fixed the rate of compensation the commissioners are to receive. These commissioners are not appointed at the instance of the United States.

In this way the awards for damages have already been made to the amount of $70,000, and ultimately a much larger sum will be claimed to be due from the United States.

The officer of engineers in charge of the improvement of the Fox and Wisconsin rivers reports that the dams which have occasioned the flowage were not constructed by the canal companies, and are not at all necessary for the purposes of navigation, and so far as that is concerned could not only be lowered, but entirely dispensed with.

They were built by private parties solely for their own use and profit and for water-power purposes, and have raised the water level and caused the flowage, for which they should be held liable.

In view of the preceding facts, and for the additional reason that the subject of the liability of the United States is now being investigated by the Department of Justice, it is respectfully suggested that the inclosed act to amend chapter 166 of the laws of the second session of the Forty-third Congress (S. 692) should not become a law.

A.A. HUMPHREYS,
Brigadier-General and Chief of Engineers.

EXECUTIVE MANSION, July 11, 1876.

To the House of Representatives:

For the reasons set forth in the accompanying report of the Secretary of War, I have the honor to return herewith without my approval House bill No. 1337, entitled "An act for the relief of Nelson Tiffany."

U.S. GRANT.