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The Library Fund consists of the fees paid to the Secretary of State for commissions and for filing certificates of incorporation, and five dollars paid by each member of the Legislature. At the time when many mining companies were being incorporated the Fund was quite large, but from this time the amount of fees collected by the Secretary of State will probably amount to no more than three thousand dollars each year. A greater sum is required for the purcbase of books, and the Trustees recommend that the Legislature take such action as will place in the Library Fund an amount sufficient to make our State Libray one of the best and most valuable libraries in the United States.

JOHN G. McCULLOUGH,

Attorney-General.

JOS. W. WINANS,
H. W. HARKNESS,
C. G. W. FRENCH,
W. C. BELCHER,
Trustees of the State Library.

OF THE

State Harbor Commissioners

FOR THE

YEARS 1866 AND 1867.

D. W. GELWICKS........STATE PRINTER.

To the Honorable FRED'K F. Low,

Governor of the State of California :

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SIR :-In pursuance of the requirements of the statute, the Board of State Harbor Commissioners herewith submit their report for the two years ending November third, eighteen hundred and sixty-seven.

At the date when the preceding report of this Commission was submitted, an advertisement was in course of publication soliciting proposals for leasing a portion of the water front previously set apart for the purposes of a dry dock, under the provisions of section seven of the the Act of March fifth, eighteen hundred and sixty-four, (Statutes of 1863-4, p. 152 ;) accordingly, upon the seventeenth day of November, eighteen hundred and sixty-five, the day named in the advertisement, the Board proceeded to open the bids. Only one bid was received, being that of A. A. Macpherson, W. H. Hooke, W. J. Adams, C. H. Wetherbee, and W. C. Talbot; the bidders agreeing, should their proposal be accepted, to build a dry dock within thirty (30) months from the acceptance of their bid, of a capacity sufficient to accommodate a vessel of twelve hundred tons burden; and as soon thereafter as the wants of commerce might require, a dock of a capacity sufficient to receive a vessel of four thousand tons burden ; to pay a monthly rental of fifty dollars per month for the first thirty months, and from the expiration of said thirty months a montbly rental of one hundred and fifty dollars per month for the balance of the term of the lease.

After mature deliberation, the Board accepted the bid, with the proviso that said bidders should agree to build, first, the larger of the two docks referred to in the bid, and should file with the Board a good and sufficient bond, in the sum of one hundred thousand dollars, for the faithful fulfilment of the requirements of the lease ; also, an additional bond, in the sum of fifty thousand dollars, (liquidated damages,) for the completion of the dock within the time named in the bid.

On the fifteenth of December, the bidders having acceded to the terms of the proviso, and having executed and submitted to this Board the required bonds, the Board proceeded to execute the lease.

On the thirteenth day of February of the present year, the lessees under the said dry dock lease presented a communication to the Board,

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