last report, the company urged as an excuse for the small quantity delivered, when compared with the quantity required under the contract, the difficulties incident to the opening and equipment of a new quarry, and the early closing of river navigation. From the opening made of the quarry in the fall, the Commissioners were assured by the company, and expected that the delivery during the season of 1872 would meet the contract requirements, which would enable them to complete the story during the year; whereas, at no time during the season did the delivery equal that of the fall of 1871, much less equal the amount required by the contract and the necessities of the work.

Although, from the beginning of the year, the supply was inadequate, yet, as the procurement of the stone at the contract price was highly beneficial to the State, and as the company claimed, from time to time, that the delivery would be increased, the Commissioners granted every reasonable opportunity to the company to test the capacity of the quarry, and to obtain and deliver the granite pursuant to the contract.

By the month of July, however, the Commissioners became satisfied that the Yarmouth quarry could not be relied upon to furnish stone sufficiently fast for the wants of the work. It was evident in working the quarry that the stone was so peculiarly bedded therein that, in order to procure blocks of the requisite size, more than twice their amount had to be removed, rendering the quarrying slow, difficult and expensive. It was also manifest that the cost of quarrying and transporting the same to Albany exceeded the contract price, thereby depriving

the company of a stimulus to energetic action in the performance of the contract.

These circumstances compelled the Commissioners to make requisition upon some other quarry to obtain with dispatch the full quantity of granite desired. There were only four in the country that furnished it of a character and color suitable to be placed in the building in connection with that already used. Hence, resort was had to these. Negotiations were forthwith commenced with the proprietors thereof, which resulted in the acceptance of a proposal received from the Hallowell Granite Company, J. R. Bodwell, president, to deliver at Albany 300,000 cubic feet from its quarry at Hallowell, Maine, at $1.35 per cubic foot. This was the lowest price at which the Commissioners were able to procure the additional granite, and, in their opinion, founded upon knowledge derived from their experience, is a reasonable price. A contract was accordingly made with the Hallowell Granite Company, on the 30th day of August, for the amount above stated. By the terms thereof, 40,000 cubic feet were to be delivered before the end of the year, 150,000 cubic feet in 1873, and the remainder before the first day of October, 1874.

Since the making of said contract, granite has been received from both Yarmouth and Hallowell quarries. The Hallowell Granite Company has already delivered, as agreed, 40,000 cubic feet, and has thus far complied with every undertaking which it assumed.

The result has justified the action of the Commissioners and demonstrated that if the work had been commenced in the spring with the same sources of supply that have

existed since the making of the last contract, the story now in process of erection would at this time have been finished.

The granite for the story has been nearly quarried, and sufficient has been delivered at Albany to keep 200 stonecutters employed in dressing it during the winter. This is the largest number that can be accommodated at the shops in Albany. In order to complete the dressing of the granite for the story by May next, it was necessary to work 200 more stone-cutters thereon. Therefore, the Commissioners, on the 15th day of November, contracted with the Hallowell Granite Company to dress 40,000 cubic feet at its quarry, and deliver the same at Albany, for $6.75 a cubic foot; which price, including the material, is as low as the same could be contracted for, and does not exceed the cost of the dressing by day's work at the shops in Albany.

If the arrangements thus perfected shall be continued, the Commissioners are confident in the belief that this story will be completed in the month of May, and that the three remaining stories may be built so that the building can be in readiness for the roof by the close of the season of 1875.

The amount expended upon the erection of the New Capitol during the year 1872, in which is included all payments from the 31st day of December, 1871 (up to which time the last annual report was made), to the first day of January, 1873, is $787,432.43, which may be classified in a general way, as follows:

FOR LABOR.

In stone-cutting, masonry, machinery, carpenters' work, and expenses connected therewith......

Stone, brick, cement, sand, etc.

$421,909 94

FOR MATERIAL.

300,431 83

Total expenditures from the commencement

of the work to the 1st of January, 1873.. $2,825,102 84

The amount received by the Commissioners from

all sources for the purpose of the erection of the New Capitol from the 31st day of December, 1871, to the first day of January, 1873, is Total amount of receipts prior to 1872, as per annual report of 1871....

Making the total amount of receipts from the commencement of the work to the first day of January, 1873, the sum of..

Cash in hands of the treasurer, $21,146.76.

$804,860 43

2,041,389 17

$2,846,249 60

Of the above sum received during the year 1872, the sum of $325,000 was from the Comptroller under unexpended appropriations made prior to the appropriation of 1872, and $470,000 was received under the appropriation of 1872, leaving a balance of $530,000 still unexpended. This sum will be needed during the winter and spring to make the necessary payments for material and dressing the same.

The Commissioners submit herewith a copy of the treasurer's report, giving a detailed statement of all the receipts and expenditures from the first day of January, 1872, to the first day of January, 1873, marked “A.” Also a copy of the engineer and inspector's report, showing the quantity of material received from the first day of January, 1872, to the first day of January, 1873, and the quantity now on hand for future use, marked "B." Also a copy of the architect's report on the state of the work, marked "C."

The Commissioners, having entered into engagements, as hereinbefore stated, by which the story of the building now in process of erection, and another story in addi tion, can be completed during the present year, recommend an appropriation of one million and a half of dollars.

ALBANY, January 7, 1873.

HAMILTON HARRIS.

WILLIAM C. KINGSLEY.

WILLIAM A. RICE.

CHAUNCEY M. DEPEW.

DELOS DE WOLF.

EDWIN A. MERRITT.