It is not improbable that the legislature assembling under the new constitution may devise some general system by which the great works of improvement in the state will be completed, and its large investments in them be made productive. I recommend that you authorize a memorial to be prepared and presented to the legislature, asking that your improvement may be provided for, if such a system shall be adopted. I make this recommendation with a thorough conviction that the complete execution of the company's work connecting the eastern and western waters would be most wise as a financial measure, securing to the state a satisfactory income on large investments now unproductive; would enlarge the trade and commerce and general revenues of the state, and relieve her from heavy liabilities for the company, which, with its present limited means, it cannot hope to meet within any reasonable time, and would enable the company, without injustice to other portions of the state not using the canal, or to its own stockholders, to reduce the cost to those who may use it.

The price of slaves has been so high during the past year, that it has not been deemed judicious to purchase any, as authorized by the resolution of the stockholders at the last meeting.

I recommend that the time of the future general meetings of the stockholders be changed to the fourth Monday of October in each year. This change will conform to the change made in the fiscal year, and will meet the wish of the Board of public works, that the annual reports of all internal improvement companies, in which the state is interested as a stockholder, may be communicated to the board by the first of November.

I have the honor to be,

Very respectfully,

Your ob't servant,

J. Y. MASON.

November 24th, 1851.

[No. 1.]

Summary Statement of Receipts and Disbursements of the James River and Kanawha Company from the 31st October 1850, to the 30th September 1851.

173,147 83

Premium and Accrued Interest on State Stock sold for Resumption of

Works, and for Completion of Canal to Buchanan:

DISBURSEMENTS:

Amount paid to second auditor,

77,460 00

Less amount received,

Southside and Rivanna connections,

8,241 86

Add amount borrowed from new improvements on the 31st October 1850, and now refunded,

8,638 37

Excess of disbursements over receipts borrowed from the appropriation for the Tidewater connection, and to be refunded,

$157,148 14

UNFINISHED IMPROVEMENTS, (between Lynchburg and Buchanan.)

SOUTHSIDE AND RIVANNA CONNECTIONS.

Balance on hand 1st November 1850,

RECEIPTS:

From sales of guaranteed bonds,

DISBURSEMENTS on the following accounts:

Southside connections:

13,275 35

84,100 00

97,375 35

$8.241 86

Excess of disbursements over receipts borrowed from improvements in operation, and to be refunded,