expenses of maintaining the Reservation. We therefore request

that early provision be made for this improvement.

Work of the Year-Ice Formations.

We invite your attention to the recapitulation of work done upon the Reservation during the past year given in the Superintendent's report appended hereto. The Reservation is in as good condition as can be expected from the moderate amount of money expended upon it. The Treasurer's report will show the disposition of the funds during that period. We particularly ask your attention to the Superintendent's very clear and interesting description of the singular process of ice-formation caused by the remarkable physical conditions existing at the Falls. It explains the cause not only of the uniquely beautiful ice-forms of Niagara, but of the continued expense of maintenance in winter and of repair in spring.

Recapitulation of Requirements.

Recapitulating our requests, we ask for the following appro

Requirements for Maintenance.

The first of the foregoing items, namely, that for ordinary maintenance, is required for the following estimated expenses:

Salary of Superintendent, expenses of Commission

The estimated receipts for the current year are as follows:

Niagara, Lockport and Ontario Power Company Charter. On January 18, 1904, the Hon. George F. Thompson, of Niagara county, introduced in the Assembly a bill to enlarge the charter powers of the Niagara, Lockport and Ontario Power Company, to which the Legislature of 1894 had granted limited privileges for

the use of water taken from the Niagara River above the Falls. The Commissioners of the State Reservation at Niagara, consistent with their policy begun in 1886, having opposed the granting of this charter in 1894, opposed its extension in 1904. Their opposition was based chiefly on three grounds:

First, that charters had already been granted for the diversion from the upper Niagara river of a quantity of water sufficient to diminish appreciably the volume of the Falls;

Secondly, that the developments already authorized were far greater than are required by present commercial demands; and

Thirdly, that the potential value of this hydraulic power is an asset-a part of the commonwealth of the people of the State, which should be harbored for the future financial needs of the State, and should never be appropriated without adequate compensation to the State.

The bill passed the Legislature, but was wisely vetoed by the Governor.

In view of the importance of this subject and the great public interest in it, we have appended to this report a memorandum concerning the jurisdiction, powers and proceedings of this Commission with respect to the preservation of the falls and scenery of Niagara; which will show that the Commission has consistently opposed encroachments into the river and the diversion of water from the falls of Niagara ever since the presentation of its second annual report.