The work upon the eastern division has been retarded from the scarcity of labor. Time seems to be required to collect the necessary force upon the line. With the exception, however, of the Susquehanna bridge, the grading will be prepared for the superstructure, to Lewistown, this year. The masonry of that important job was first allotted to contractors. The principal of the firm, though highly recommended by the officers of the Reading Railroad, proved unequal to the task he had undertaken, and their contract was abandoned. In consequence, the remnant of last season, after the contract was let, was mostly lost. The work has been re-let to Holman, Simons and Burke, who have carried it forward satisfactorily. The prevalence of high water, since the season for laying masonry commenced, has prevented as much progress, at this time, as could have been desired; but we still entertain hopes that it will be completed before the ensuing winter. If this is accomplished, the Road can be opened to Lewistown next spring. Under any ordinary circumstances it will be finished to Huntingdon (98½ miles) by the close of navigation in 1849--a point as low down as we may anticipate a profitable use of the Road from. Our arrangements have been made with a view to the completion of the Road to the Allegheny Portage, early in the spring of 1850. An earlier period could not be fixed, owing to the magnitude of some of the work on the Little Juniata; a portion of which, embracing the tunnel, through a point of Tussey's mountain, was located and contracted for last December, to avoid delay and a premature expenditure of capital on the lighter work, which would have followed a general letting of the whole Road at that time, or since, even if it could have been prepared for contract in season. If sufficient means shall be obtained to prosecute the western division, I would recommend that the heavy portions of the work, between the Conemaugh and the confluence of Brush and Turtle creeks, should be placed under contract, together with the grading, continuously from the Portage road to the point of divergence of the line from that river towards Pittsburg, if the Conemaugh route is adopted. When the connection is made with the Portage Railroad, from the east, there will then be a continuous railroad from Philadelphia to Johnstown, 282 miles in length, and, if opened at the same time to near Blairsville, it will be extended to 310 miles, with only 43 miles of turnpike thence to Pittsburg, or 75 miles of canal navigation, giving a line of communication, with the Ohio river, far superior to any railroad route existing, or any that will at that time be built. On freight destined to the interior of Ohio but one transshipment will then be necessary. The canal boats, loaded at the terminus of the Road, can be conveyed to any point upon the Ohio canal.