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FIFTH
ANNUAL REPORT
OF THE
OFFICE, NORFOLK, VA.
NEW YORK:
HOSFORD «b KETCHAM, STATIONERS AND PRINTERS.
Nos. 57 and 59 William Street.
18 6 4:.
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REPORT.
More than balf a century ago, the great importance of this line
of intercommunication, considered in a national point of view, re-ceived
an official recognition in a report by Mr. Gallatin, the then
Secretary of the Treasury. He recommended it as the shortest and
cheapest route for a line of inland navigation between North and
South. Just previous to the rebellion, a Company of Northern
capitalists had undertaken the construction of this work, and had
very nearly completed it, when they were obliged, by the war, to
abandon it till the Government had again established its authority
over that section of the country. The line is about sixty-five miles
in length, from the waters of Albermarle Sound to Norfolk, and con-sists
partly of Canals and partly of natural water courses, the Canals
being two in number, one situated in North Carolina, the other in
Virginia.
Commencing in North Carolina, at the mouth of North River, a
wide and deep tributary of Albemarle Sound, the line extends up
that River to the Canal ; thence through the Canal to Currituck Sound ;
thence through Currituck Sound, and up the North Landing River to
the Virginia section of Canal ; and thence through said Canal to the
South-west Branch of Elizabeth River to Norfolk.
Of this line, the length of independent Canal, exclusive of im-provements
of natural water courses, is 14.10 miles, divided into two
sections as follows
:
In N. C, from North River to Currituck Sound 5.65 miles.
In Va., through Great Bridge Swamp 8.46 "
4 REPORT,
All tlie residue of the line consists of natural water courses, vary-ing
in width from 200 feet to several miles.
There is but one lock on the whole line, and that is located at the
junction of the Canal with the Elizabeth River, and is rendered
necessary only by the tide in the river, which at that point has a rise
and fall of about four feet. It is one of the largest locts in the
United States, being forty feet in width, two hundred and twenty feet
in length between the gates, and has eight feet depth of water at low
tide upon the miter sills. The walls are built in the most substantial
manner, with dressed stone from the granite quarries of Port De-posite,
and rest upon a solid timber and pile foundation. The
ordinary surface of water in the Canal corresponds with the surface
of the water in the river at mean tide, so that at high tide in the
River it is necessary to lock down two feet into the Canal, and at low
tide in the River to lock up two feet into the Canal. The greatest
amount of lockage is therefore only two feet; while at mean tide
there is no lockage, as the waters are on a level, and consequently
the average lockage will not exceed one foot.
This is probably the first lock ever constructed which would allow
vessels to lock up or down either way. To accomplish this object,
two sets of gates, shutting in opposite directions, are placed at each
end of the lock, and vessels now pass through at any state of the
tide with equal facility in either direction.
This improvement completes a chain of inland navigation from
New York southward, a distance of about 600 miles. By reference
to the smaller of the accompanying maps, it will be seen that a con-tinuous
inland navigation from New York to Newbern, in North
Carolina, is completed by means of only seventy-one miles of canal,
viz
:
Delaware and Raritan Canal in New Jersey 43 miles.
Chesapeake and Delaware Canal, in Delaware 14 "
Albemarle and Chesapeake Canal, in Virginia and N.C . 14 "
REPORT. 5
The Canal of this Company, forming the southern link in the
chain, opens an avenue, /ree /row the dangers of Cape ITaiteras, {or
the large and increasing trade of that fertile region lying iipon Albe-marle,
Pamlico and Currituck Sounds and their tributary streams.
The Canals and water- courses forming this line were intended,
when completed, to have eight and a half feet depth at low water, so
that vessels of eight feet draft might at all times pass between For-tress
Monroe or Norfolk and Newbern, or intermediate ports. Before
the suspension of operations, the Canals proper had been excavated
to about the required depth of eight and a half feet of water, and
certain bai-s and shoals in the natural water courses, to a depth of six
feet of water, leaving on such bars and shoals two and a half feet of
bottom still to be taken out, which was being excavated when the
work was suspended, there being at that time nine large steam
dredges in full operation. Since that time the passage of side-wheel
steamers, in government employ, running at too great speed through
the Canals, has, to some extent, reduced the depth of water by wash-ing
in the sides. But this difficulty was remedied on the attention
of the Government being called to it, and it is believed that there is
now no place on the whole line having less than six feet depth of
water. With the exception of the fourteen miles of Canal, no limit
to the speed is required on any part of this line of communication.
At the breaking out of the rebellion, the Canal Company, and
Courtright, Barton & Co., contractors for doing the work, were pos-sessed
of a large amount of personal property, consisting of steam
tugs, steam dredges, steam pile driver, steam pump, barges, ma-chinery,
tools, &c,, &c., on the line ; which property has principally
been destroyed by the casualties of the war.
Since the recapture of Norfolk, in May, 1862, this work has been
regarded as within our lines, and has been used to a considerable ex-tent,
by the Government for the passage of dispatch boats, transports,
troops, &c. During this period there have been two raids made upon
the line by guerrillas, destroying at each time a considerable amount
6 REPORT.
of property belonging to parties connected with this improvement.
But owing to the peculiar topography of tbe country, and the dis-tance
from the rebel lines, there are but few points where danger is
to be apprehended from this source, and these points, it is believed,
are now properly guarded by our troops, and it may be regarded as
certain that the vigilance of the military authorities now in com-mand
of that department will hereafter protect the work from all
further similar damage.
Assuming this to be true, and that the Company will hereafter
enjoy uninterrupted possession of their work—of which no doubt
need now be entertained—it will be their policy to perfect it accord-ing
to tbe original design ; but owing to so much of the facilities for
doing the work having been destroyed as above stated, the improve-ment
will necessarily be very gradual and slow, commencing at the
shoalest points and excavating as rapidly as means will permit. If,
however, it be deemed important to any interest, either national or
commercial, that the full depth of eight and a half feet of water
should be secured throughout the entire line, at an early period, it is
estimated that an expenditure of 1150,000 will accomplish this ob-ject,
as the material remaining to be removed is of an easy nature,
and free from the formidable obstructions of cypress stumps and logs,
which were encountered in the original construction of the Canals.
This will be more fully appreciated from the following extract
from the Report of John Lathrop, Chief Engineer of this Canal,
made to the Company in 1859.
" Although in the construction of this Canal, we have encounter-ed
the most formidable and unforseen difficulties from logs, cypress
and other stumps, both below and above the surface, difficulties
greater probably than were ever before met with on any work of
equal extent, and which have had the eflfect to retard the completion
of the work, it may be gratifying to the stockholders to know, that
when finished, there is no Canal in the world subject to so few contin-gencies,
or the maintenance of which will be attended with so little
REPORT. 1
expense, or subject to so little depreciation. Tlie water of the Canal
being for its entire length below the level of the adjoining country,
no embankment is necessary upon the whole line, and consequently
must be exempt from breaks. No mechanical work that effects the
navigation, except the one lock, which is constructed in the most
durable manner. No streams crossing; or running into it which
might cause bars or freshets. Free from all quicksand or other ma-terial,
which would be liable to wash in or fill up the Canal, and
having an unlimited supply of water, it is scarcely possible to con -
ceive of a work more favorably situated in regard to casualties, de-preciation
or cost of maintenance."
Commenced in 1855, the work was prosecuted with unremitting
diligence (by the employment for most of the whole period of nine
large steam dredges or excavators,) up to the suspension caused by
the war.
In view of the importance of this line of communication, the
inability of the Company to prosecute the work to a spee
completion, is to be regretted—relieving as it does the general
Government from making the channel to the ocean, which they
had commenced at Nag's Head, and which would have involved an
expenditure of some $5,000,000, together with its national impor-tance,
would seem to give a reasonable claim upon the Government,
to improve the natural water courses connected with the Canals, by
taking out the balance of the bars and shoals, to the required depth
of eight and a half feet ; this done the Company would at the same
time perfect the Canal part, thereby making the whole complete.
The Canal was under the control of the rebels from the time our
forces abandoned Norfolk and Portsmouth Navy Yard, on the 21st
of April, 1861, until the retaking of Norfolk in May, 1862—nearly
thirteen months.
The business done upon it since the latter period has been almost
exclusively confined to the Government, the receipts fi-om which
have not been equal to the ordinary cost of maintainance and the
» REPORT.
losses sustained from the destruction by rebel raids of boats, ma.
chinery and other property necessarily employed in keeping it up,
exclusive of extraordinary damages.
For the financial condition of tbe Company at the present time,
and for the importance of the work as a public improvement, and for
its value to the proprietors, reference is made to the annexed State-ment
and Appendix.
M. COURTRIGHT, Agmt.
STATEMENT OF AFFArRS ON THE IST OF JAN. 1864.
Authorized Capital $1,500,000 00
LIABILITIES.
Stock paid up and held by
State of North Carolina, $350,000 00
By County of Currituck 44,000 00
" Individuals 506,000 00
Total Stock paid up $900,000 00
First Mortgage Bonds issued and sold 250,000 00
Over due Coupons unpaid 46,480 00
Bills payable 7,500 00
Total Liabilities, Jan. Ist, 1864 $1,203,980 00
[Note.—^The mortgage is for $400,000,—leaving un-issued
and unexpended $150,000 00
Of the individual stock, nearly the entire amount is held by the
original holders, who are all loyal Northern men, and the small bal-ance,
held in Norfolk and vicinity, is, so far as we know and believe,
in the hands of parties who have taken the oath of allegiance to the
Government of the United States. The bonds are substantially all
REPORT. 9
held by parties constituting the firm of Courtright, Barton & Co.,
who took them in payment for work done.
As indicating the probable future of this work, it may be stated
that, though all the traffic thus far has been done upon an unfinished
work, having commenced with a small channel of less than half the
intended width, and only about four feet of water, yet it increased
from a few hundred dollars per month for tolls and towage—as the
work was enlarged—to between $5,000 and |6,000 per month, be-fore
the breaking out of the rebellion, and gave every assurance
of securing in a short time the whole North Carolina trade. Wlieth-er
in the hands of the Government or of private owners, this work,
it is confidently believed, is destined to be a source of large profit, in
a pecuniary point of view.
APPENDIX.
The region tributary to this improvement embraces about 12,500
square miles, or 8,000,000 acres of territory ; being larger than either
of the States of Maryland, New Jersey, Massachusetts, Connecticut,
New Hamsphire, or Vermont, and larger than the combined area of
Connecticut and Massachusetts, or of New Jersey and Delaware.
Albemarle, Pamlico, and Currituck Sounds receive the waters of
twenty-one rivers, and a great number of smaller navigable streams,
altogether watering upwards of twenty fertile counties, and affording
about 1,800 miles of navigation.
The coasting tonnage of North Carolina exceeds two-thirds of her
whole commerce ; and nearly three quarters, or about 4,500 tons, of
her whole coasting tonnage belong in this Albemarle and Pamlico
country,* This is the tonnage of vessels belonging in the territory.
The amount employed is much greater, as will be hereafter shown by
the official returns of the light house keepers.
The waters of Eastern North Carolina are shut in from the ocean
by a long narrow strip of land, consisting of banks of sand thrown
up by the waves ; and for nearly two hundred miles, the only open-ings
for sea-going vessels are two intricate and changing channels,
known as Ocracoke and Hatteras Inlets. Their navigation is ex-ceedingly
dangerous, uncertain and expensive. The channels are so
shallow that most of the vessels have to discharge cargo into lighters
before they can pass the bars, and the weather must be very favorable
to enable them to get to sea at all.
The extra expenses caused by this detention, together with the
necessary lighterage, are estimated by those engaged in the trade, to
amount to one dollar per ton of each cargo.
These inlets being south of Cape Hatteras, all vessels bound to
the North, even if so fortunate as to get safely over the bars, are yet
*D. S. Treasury Reports on Commerce and Navigation, for 1859.
APPENDIX. 11
subjected to the perils of the most dangerous promontory on the coast
of America. There is no place of refuge for vessels, between Ocracoke
and the capes of Virginia, a distance of nearly 200 miles. And as
these inlets are about seventy-five miles south of Albemarle Sound,
all vessels from that sound, bound to northern ports, have to perform
a voyage of 150 miles to get at sea upon the same parallel with their
starting point, besides lightering over the bars of an intricate channel,
and encountering the dangers of Cape Hatteras, where there are un-doubtedly
more shipwrecks than upon any other part of the American
coast.
The extra insurance upon Ocracoke and Hatteras risks amounts
to about three per cent, over and above the ordinary rates.
The amount annually lost in this trade, by reason of this extra
insurance, lighterage and detention, is estimated at about half a million
of dollars.
That these extra charges enhance the rate of freight and the cost
of conveyance to market, is shown by the fact that freights from
Wilmington, N. C, 120 miles south of Ocracoke, were (before the
war) considerably lower than from the towns of the Albermarle.
If this enhanced freight be estimated as a tax upon produce of
six per cent, only, the actual positive loss directly chargeable to the
defects of this navigation, amounts every year to more than three
quarters of a million of dollars, a sum equal to more than one-half
the entire cost of the construction and equipment of the new Canal.
These heavy burdens have long demanded a more suitable outlet
for this trade; and for the last forty years, efforts have been made to
induce the General or State Government to reopen Roanoke Inlet
near Nag's Head. At this point, and also at another near Crow
Island in Currituck Sound, where now lie high drifted banks of sand,
were once navigable inlets ; and it has been thought by many that
these could be reopened. Within the last few years the experiment
has been tried.
Congress made an appropriation, and the reopening of Roanoke
12 APPENDIX.
Inlet was undertaken under the direction of the War Department.
After four-fifths of the appropriation had been expended, there was
"scarcely a trace to be seen of what had been done, the drifting sand
fiilino- in the trench as fast as it was excavated by the dredging
machine. In fact the machine was very near being imbedded in the
sand, it filling in so rapidly behind it." * Under these circumstances
the able officers in charge of the work, (Lieut. Whiting, and sub-sequently
Brevt. Col. Turnbull, TJ. S. Engineers), pronounced the
scheme impracticable, "short of an enormous expenditure altogether
disproportionate to the object,"* and advised its abandonment as a
wanton waste of the public money. Col. Turnbull further reported
as an additional reason for abandoning it, that the work was no
longer even desirable, inasmuch as the Albemarle and Chesapeake
Canal would '^obviate all necessity of a communication with the sea
through Nag's Head:' *
The scheme of reopening the closed inlets, was therefore abandon-ed
as impracticable and unnecessary. Even where it practicable, the
cost would be enormous, at least 15,000,000, according to Col. Turn-bull's
estimate,* and after all, there would be no certainty of its
remaining permanent. On the contrary, it is highly probable, that as
the same causes continue in force, the inlets would in time be again
filled up. A similar fate undoubtedly awaits Ocracoke and Hatteras
at no distant day, since it is notorious that their channels have been
gradually shoaling for several years; and they must in time be
wholly closed up, or at all events become impassable for vessels, while
the waters of the sounds will force their way to the ocean through
the sands still further to the south.
From the TJ. S. Coast Survey Report for 185Y, it appears that
"the water on the bar at Ocracoke has decreased at least two feet
since the last survey (1852)," a period of five years.
The officer who reports this fact (Commander W. T. Muse, U. S.
N^ further says of this inlet, that "the fears in regard to the filling
Report of Secretary of War for 1857, p. 347.
APPENDIX. 13
up of the channel, of which there are some indications at present, will
probably be realized at no distant day. It would be a matter of great
regret if a convenient access to the sea should be denied to the rich
back country, as its inhabitants have begun in earnest to develop its
resources, which go to show that as an agricultural district, it is per-haps
not excelled." [See Report of U. S. Coast Survey for 1857,
p. 152.]
The foregoing facts, we think, sufficiently demonstrate the im-portance
of this work as a public improvement.
THE VALUE OF THE WORK AS A BUSINESS ENTERPRISE.
The profits to the Stockholders will depend first on the amount
of traflic, and secondly upon the expenses of maintenance and
management.
As to the first, the Board confidently expect the entire northward
trade of the three Sounds and their tributaries.
On this point there seems to be no room for doubt; for it is
inconceivable that a navigator should be willing to encounter the
dangers, the vexatious delays, and the extra expenses of Ocracoke
and Hatteras, going 150 miles out of his way, and losing from three
days to three weeks time, when a perfectly safe and far cheaper and
speedier way is open to him. The Canal being specially designed for
steam towing, a vessel by this line can reach Chesapeake Bay, and
the ocean through the Capes of Virginia, in twenty-four hours from
the Albemarle; and may make her voyage to a northern port and
back home again in the same time that she would be detained at the
Inlets getting over the bars.
No argument can be necessary to prove that trade will prefer a
route, at once direct, certain, cheap, and safe, to others that are in all
respects the very opposite,
—
indirect, uncertain, ex2)ensive and danger^
ous.
Another important consideration is that northward bound vessels
arriving by this line in the Chesapeake, have here a choice whether
to go up the Bay and through the Canals, or to go by sea from tlie
U APPENDIX.
Capes of Virginia; either route being free fronn danger, and from all
expenses arising from lighterage, detention, or extra insurance.
These considerations, Ave think, fuliy warrant us in counting upon
the whole of the Albemarle and Pamlico northward trade, together
with all the increase naturally consequent upon new and increased
facilities. Let us therefore inquire into the probable amount of this
trade, and of its profits to the Company.
The soil of this region is of very great fertility, yielding abundant
crops of corn, wheat, potatoes, peas, and the various other agricultural
products. Cotton is grown to a considerable extent, and its produc-tion
is every year increasing. The crop, for the year 1859, was
estimated at 100,000 bales. And it is well known that a very
large proportion of the naval stores used in the United States are
produced in this region. The quantity of lumber, timber and staves
is very large, and the number of shingles produced here, is immense.
The fisheries, also, are the most productive in the Union.
Of the amount of shipping employed in this trade an approximate
idea may be formed from the ofiicial returns of the light keepers,
who are required to keep daily accounts, and to make quarterly
returns of the number and class of vessels passing their respective
stations.
Till within the last few years, the principal opening to the ocean
was Ocracoke Inlet. For instance, during the year 1855, there were
upwards of 5,250 passages through Ocracoke,* while the estimated
number at Hatteras was only about 1750; but lately Ocracoke chan-nel
has become so difficult that vessels now almost exclusively use
Hatteras Inlet in preference.
As to the number of these vessels, we can get a sufficiently correct
idea by aggregating the returns from the Lights at Croatan and JV.
W. Royal Shoal, since all vessels from the Albemarle, whether for
Ocracoke or Hatteras, must pass the former, while most of those
from a southerly direction, pass the latter. We are, however, in-formed
by the same officer, that a considerable number of vessels from
* Lighthouse returns for 1855.
APPENDIX. 15
Hyde county, goin^ to Hatteras, do not pass suflBciently near any
Light to be recorded.
The returns from the two above mentioned stations for the year
1858, foot up as follows:
First Quarter 1,229
Second " 1,342
Third " 1,298
Total for three quarters. . . .3,869
To these returns it is safe to add 2.5 per cent, for vessels passing
in the night, or otherwise unseen by the light keepers. Add 25 per
cent, to the above, and we have 4,836 vessels for the first three quar-ters
of the year ; and assuming that the fourth quarter will average
with the other three, we can add 1,612 more, making a total of 6,448
for the year. Supposing them to average 125 tons each, the result
is a total of 806,000 tons. The proportion of this that goes north-ward
is estimated to be fully three quarters, or 604,500 tons.
This is more than double the tonnage of the Delaware and Rari-tan
Canal, other than its coal tonnage, upon which that Company
received for the year 1857 tolls amounting to $128,586 25.*
It is more than two thirds the tonnage of the Welland Canal for
1857; upon which the tolls amounted to $232,437 18 ;f and it is
more than two thirds the tonnage, other than coal, of the Chesa-peake
and Delaware Canal, where the tolls for the year 1857 were
$229,081 33.J
If, therefore, our tolls be fixed at the same rates as those of the
Delaware and Raritan Canal Company, they should amount to up -
wards of $257,000 per year. At the rates charged upon the Wel-land
Canal, the amount would be about $155,000 per year; and at
the Chesapeake and Delaware rates, about $152,000.
To these estimates must be added the business that has hereto-
* Information obtained at the Delaware and Raritan Canal office, Princeton, N. J.
t Information obtained from the Welland Canal office, St. Catharines, Canada West.
X Information deduced from the Annual Report of the Chesapeake and Delaware Canal
Company, for the year ending June 1, 1857.
16 APPENDIX.
fore passed through the Dismal Swamp Canal ; inasmuch as that
canal is so notoriously insufficient for the wants of the trade, that its
entire through business must inevitably be diverted to the new route.
The small capacity of that Canal, its insufficient supply of water, the
number and diminutive size of its locks, and its connection with the
difficult navigation of the Pasquotank River, commonly called from its
circuitous channel the ''Moccasin track," constitute objections to
that route too serious to admit of any doubt on this point.
The tolls received by that Company were for several years, prior
to the rebellion, upwards of $40,000 per year.
The foregoing estimates, it will be observed, are based only upon
the northvrard trade of the Albemarle and Pamlico country, which
is estimated at three-fourths of the whole But we see no reason to
doubt that even southward bound vessels can ordinarily get to sea
through this line, and by the capes of Virginia, in less time than by
the Ocracoke or Hatteras route, to say nothing of diminished expen-ses
and entire freedom from danger. Should this expectation be
realized, it would increase the amount of tonnage to about the same
as that of the Welland Canal, upon which, as we have seen, the
tolls for ISSY amounted to |232,437 18. At Delaware and Raritan
rates the amount would be upwards of $334,000 per year. This, it
must be remembered, is from tolls' alone.
But in addition to tolls, this Company is authorized to derive rev-enue
from towage ; and the Canal having been constructed with sole
reference to steam towing, it is expected that the receipts from this
source will be nearly, if not quite equal to those from tolls.
The Company also hold the tract of land, consisting of about 6,000
acres, traversed by the Virginia section of the Canal, the whole of
which is covered with valuable wood and timber. The quantity of
wood is estimated at 250,000 cords; worth, standing, one dollar per
cord. And if the opening of the Canal shall have the effect of drain*
ing this tract, as in all probability it will, the land, when cleared, will
be of the most valuable description for farming purposes.
t^^>o^^
(^~-0<^
THE LIBRARY OF THE
UNIVERSITY OF
NORTH CAROLINA
THE COLLECTION OF
NORTH CAROLINIANA