Thus is the United States defrauded annually of about $26,000. From my observations and information, I think it will be an easy matter to prevent the smuggling of the Fond du Lac department, by establishing a post with a garrison of 100 men, and an office of the customs, near the mouth of the St. Louis, where all goods for the Fond du Lac department must enter. This is at present the distributing point, where the company have an establishment, and where the goods, on being received from Kamanitiquia, are embarked for their different destinations. That point also commands the communication with Lake de Sable, Leech Lake, Red Lake, etc. I am also of opinion that the goods for Red River, if it be within our boundary, would enter here, in preference to being exposed to seizure. It is worthy of remark that the charter of the Hudson's Bay Company extends to all its waters: and if the British government conceived they had authority to make such a grant, they certainly would claim the country therein specified, which would extend far south of the west line from the head of the Lake of the Woods.

The North West Company were about to push their trade down the Mississippi until they would have met the traders of Michilimackinac; but I gave them to understand that it could not be admitted, as appears per letter to Mr. Dickson.

A. Description of the N. W. Company's Fort at Sandy Lake.

The fort at Sandy Lake is situated on the S. side, near the W. end, and is a stockade 100 feet square, with bastions at the S. E. and N. W. angles, pierced for small-arms. The pickets are squared on the outside, round within, about one foot diameter, and 13 feet above ground. There are three gates: the principal one fronts the lake on the N., and is 10 × 9 feet; the one on the W. 6 × 4 feet; and the one on the E. 6 × 5 feet. As you enter by the main gate you have on the left a building of one story, 20 feet square, the residence of the superintendent. Opposite this house on the left of the E. gate, is a house 25 × 15 feet, the quarters of the men. On entering the W. gate you find the storehouse on the right, 30 × 20 feet, and on your left a building 40 × 20 feet, which contains rooms for clerks, a workshop, and provision store.

On the W. and N. W. is a picketed inclosure of about four acres, in which last year they raised 400 bushels of Irish potatoes, cultivating no other vegetables. In this inclosure is a very ingeniously constructed vault to contain the potatoes, and which likewise has secret apartments to conceal liquors, dry goods, etc.

B. Description of the N. W. Company's Fort at Leech Lake.

The fort is situated on the W. side of the lake, in lat. 47° 16´ 13´´ N. It is built near the shore, on the declivity of a rising ground, having an inclosed garden of about 5 acres on the N. W. It is a square stockade of 150 feet, the pickets being 16 feet in length, 3 feet under and 13 feet above the ground, bound together by horizontal bars each 10 feet long. Pickets of 10 feet are likewise driven into the ground on the inside of the work, opposite the apertures between the large pickets. At the W. and E. angles are square bastions, pierced for fire-arms.

The main building in the rear, fronting the lake, is 60 × 25 feet, 1½ story high; the W. end of this is occupied by the director of the Fond du Lac department. He has a hall 18 feet square, bed-room, and kitchen, with an office. The center is a trading shop of 12½ feet square, with a bedroom in the rear, of the same dimensions. The E. end is a large store 25 × 20 feet, under which is an ice-house well filled. The loft extends over the whole building, and contains bales of goods, packs of peltries; also, chests with 500 bushels of wild rice. Beside the ice-house, there are cellars under all the other parts of the building. The doors and window-shutters are musket-proof.

On the W. side is a range of buildings 54 × 18 feet, fronting the parade, the N. end of which is a cooper's shop 18 × 14 feet, with a cellar; joining to which is a room called the Indian hall, expressly for the reception of Indians, and in which the chiefs who met me in council were entertained. In this hall are two closed bunks for interpreters; its dimensions are 22 × 18 feet. Adjoining this is a room 18 feet square for the clerks, in which my small party were quartered. Under both of the latter rooms are cellars.

On the E. side is a range of buildings 50 × 18 feet, which has one room of 20 feet and one of 15 feet, for quarters for the men; also, a blacksmith's shop of 15 feet, which is occupied by an excellent workman. On the left of the main gate, fronting the river, is the flag-staff, 50 feet in height.