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

For new structure covering Inclined Railway.....

Requirements for Maintenance.

The first of the foregoing items, namely, that for ordinary main

tenance, is required for the following estimated expenses :
Salary of Superintendent, expenses of Commission-
ers and office supplies....

$4,300 00 Police, care-takers and watchmen..

6,000 00 Operation of Inclined Railway..

4,400 00 Repairs and supplies, Inclined Railway..

2,000 00 Labor on grounds and roads...

6,700 00 Tools, materials, etc.

6,600 00

Total.....

$30,000 00

Estimated Receipts.

The estimated receipts for the current year are as follows: From Inclined Railway..

$9,500 00

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, consist

ent with their policy begun in 1886, having opposed the granting

of this charter in 1894, opposed its extension in 1904. Their oppo

sition 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 com

pensation 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 con

cerning the jurisdiction, powers and proceedings of this Commis

sion 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.