CHAPTER VIII.

        WABASH AND ERIE CANAL AND FEEDERS—RESERVOIR WAR.
    In the year 1827, the Congress of the United States made a grant
of lands for the construction of the Wabash & Erie Canal, with Toledo
and Evansville as terminals. In 1830 and 1831, the legislature of the
state authorized the commencement of its construction, and work was
actually begun in 1832, on that section lying between Toledo and
Lafayette. That part of this thoroughfare lying between the Wabash
river at Terre Haute and White river at Worthington, was known as
the Cross Cut. This section crossed Clay county, intersecting Perry,
Lewis and Harrison townships. Its course through the county was from
northwest to southeast, nearly twenty miles in extent. The construction
of this canal was a part of the system of internal improvements under-
taken by the state. As a summit divide between the Wabash and White
river lies in this county, in part, both ends of the Cross Cut had to be
fed from the waters of Eel river and its tributaries. This necessitated
the construction of the Feeder Dam and Splunge Creek reservoirs. The
building of the former was commenced in 1837, and completed within
two years. At the same time, the construction of the side-cut for con-
ducting the water from the dam to the main canal was in progress. As
the line of this channel lay across Birch creek, an aqueduct across the
stream was built in 1838. No work had yet been done by the state on
the lower section of the Cross Cut, between the junction and White
river. Owing to the depressing effects of the financial panic of 1837,
the state was unable to meet its obligations incurred in the progress of its
internal improvements, and work on the Wabash & Erie Canal ceased
in 1839.
In 1845, the people along the line of the proposed canal began a
general agitation of the necessity for its resumption and completion, and
petitioned the legislature accordingly. In answer, on the 19th day of
January, 1846, an elaborate bill was passed, which was supplemented by
another in January, 1847, and operations were resumed the same year.
Much of the work which had been previously done by the state was going
rapidly into decay. The canal was completed to Terre Haute in the fall
of 1849, the first boat arriving on the 25th day of October. Meanwhile,
the work was progressing in Clay county on the Cross Cut, the Side Cut
and the Feeders. Eel River dam, and the Birch Creek aqueduct were
rebuilt. Splunge Creek reservoir was made by throwing up an embank-
ment across the valley from the foot of the Old Hill two miles north to
the junction of the Side Cut with the main canal. This work was com-

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