description of the lands by meets and bounds, in whom the title is, and for what purpose and use the land is held; and if it shall appear to said court that such land is not subject to taxation according to the revenue laws of this State, then that part shall be certified by said court to the Auditor of Public Accounts, and the land shall remain exempt from taxation so long as it continues to be used exclusively for the purposes aforesaid. APPROVED, March 2d, 1843. In force, AN ACT to provide for the completion of the Illinois and Michigan Canal, Feb. 21, 1843. and for the payment of the Canal debt. Preamble Gov. authori nal &c. WHEREAS, it has been represented that certain holders of the bonds of this State are willing to advance the necessary funds for the completion of the Illinois and Michigan Canal, upon being secured the payment of their said advances and of their said bonds, by a vested lien upon the said cana!, lands and revenues; for the purpose, therefore, of accomplishing an object so desirable and beneficial to the said bond holders and the State: SEC. 1. Be it enacted by the People of the State of Illinois, sed to rego- represented in the General Assembly, That for the purpose of $1,600,000 on raising a fund for the completion of the Illinois and Michigan credit of ca- Canal, the Governor of this State be and hereby is fully authorized and empowered to negotiate a ioan solely on the credit and pledge of the said canal, its tolls, revenues, and lands, to be granted to trustees, as hereinafter provided, of one million six hundred thousand dollars for a term not exceeding six years, and at a rate of interest not exceeding six per cent. per annum, payable out of the first moneys to be realized from the said canal, its lands, tolls, and revenues; the payment of interest and reimbursement of principal to be at such place within or without the United States, and payable in such currency, as may be agreed on. Who are en titled first to subscribe for and take loan 2d class entitled to said Joan SEC. 2. The holders of canal bonds and other evidences of indebtedness of this State. issued for the purpose of aiding in the construction of the Illinois and Michigan Canal, or hereafter to be issued for work done, per centage, scaleage or damages, shall be first entitied to subscribe in proportion to the amount of bonds or other indebtedness held by them, and take the whole of the said loan; but if within a reasonable time, to be determined by the Governor, any of the said holders of canal bonds or indebtedness shall neglect or refuse to Not taken by subscribe as aforesaid, the whole of the said loan may be submay be taken scribed for and taken by other holders of canal bonds or inby any other debtedness; but if within a reasonable time, to be determined upon by the Governor, the holders of the said canal bonds or other evidences of indebtedness aforesaid, shall not subscribe 1st or 2d class persous for and take the whole of the said loan, then and in that case, any other person or persons, body politic or corporate shall be entitled to subscribe for and take so much of the said loan as may remain unsubscribed for by the said holders of bonds or other evidences of debt aforesaid. SEC. 3. After the said loan shall be subscribed for as afore- Board of trustees establishsaid, there shall be appointed three discreet persons to consti- ed tute a board, to be known by the style and description of the "Board of Trustees of the Illinois and Michigan Canal;" one Gov. to ap of the said trustees shall be appointed by the Governor of this point one and State, and the other two shall be elected or appointed by the subscribers subscribers to the said loan, or the holders of the certificates two of said authorized by this act, in manner and form as hereinafter mentioned. Whenever any vacancy shall occur in the said Vacancy how board of trustces, either by death or resignation, or from any filled other cause, said vacancy shall be filled by the Governor or holders of said certificates, to whom belonged the appointment of the trustees whose seat shall have become vacant as the case may be. trustees SEC. 4. The first election of trusices, by the subscribers to Time & place said loan under this act, shall be held at the canal office at of electing trustees by Lockport, at such time as the Governor of this State shall subscribers appoint, under the direction of one of the judges of the Supreme Court of this State, who is hereby appointed inspector of the first election, and the two persons then elected as trus tees by the said subscribers, and the person appointed trus- Term of office tee by the Governor, shall hold their offices for two years from of trustees the time of their said election or appointment and until others are clected. elections how SEC. 5. Subsequent elections shall be held every two years Subsequent at such time and place, and under the direction of such per-conducted sons as a majority of the trustees for the time being, shall, by resolution, to be entered on their minutes appoint, and the shali hold their offices for two years and until others are elected in their stead. votes for each stockholder SEC. 6. At the election of trustees under this act each stock- Number of holder shall be entitled to one vote for each and every one thousand dollars of stock held by him, and in all elections votes may be given in person or by proxy. SEC. 7. All elections shall be by ballot, and the two who Elections to shall have the greatest number of votes shall be the two trusbe by ballot tees duly elected by the said subscribers or holders of said certificates. At all such elections, the said subscribers or holders of said certificates, shall designate upon their ballots one of the persons voted for as president; and the person having the greatest number of votes as trustee and president, shall be one of the said trustees and president of said board. President SEC. 8. The said board of trustees of the Illinois and Mich- Powers and igan Canal, when duly appointed and elected as aforesaid, duties of shall apportion their respective duties among themselves, and so far as is not incompatible with this act, shall possess all the trustees Trustees to powers and perform all the duties conferred upon the Board of Commissioners of the Illinois and Michigan Canal by the act entitled "an act for the construction of the Illinois and Michtake oath and igan Canal," approved January ninth, eighteen hundred and give bond thirty-six, and the acts supplementary and amendatory thereto, and shall take an oath or affirmation, and give bonds with security for the faithful discharge of the duties imposed upon them by this act. Disposition to be made of bonds &c. scribers for said loan SEC. 9. If the holders of any of the said canal bonds or other evidences of indebtedness issued for the purpose of aidwhen holders ing in the construction of the Illinois and Michigan Canal, become sub- shall become subscribers for the said loan or any part thereof, they shall, at the time of subscribing, file or cause to be filed with the Governor, a brief description of said bonds, or other evidences of indebtedness aforesaid owned by them, which description shall be deposited by the Governor in the office of Auditor of Public Accounts, in order that the evidences may be preserved to discriminate the holders who subscribed for the said loan and to identify the said bonds or other evidences of indebtedness aforesaid, that may in consequence be entitled to a priority of payment out of property and assets granted to the board of trustees as hereinafter provided. Canal and canal lands granted to subscribers to said loan SEC. 10. For the purpose of placing in the hands of trustees full and ample security for the payment of said loan authortrustees as se-ized by this act, and the interest thereon, as well as for secucurity for the ring a preference in the payment of such of the canal bonds payment of said loan and and other evidences of indebtedness issued by this State for the bonds &c. the purpose of aiding in the construction of the Illinois and owned by the Michigan Canal as may be owned by the subscribers to the said loan, the State does hereby irrevocably grant to the said board of trustees of the Illinois and Michigan Canal the bed of the said Illinois and Michigan Canal, and the land over which the same passes, including its banks, margins, towpaths, feeders, basins, right of way, locks, dams, water power, structures, stone excavated and stone and materials quarried, purchased, procured or collected for its construction; and all the property, right, title and interest of the State, of, in, and to the said canal, with all the hereditaments and appurtenances thereunto belonging, or in any wise appertaining, and also all the remaining lands and lots belonging to the said can fund, or which hereafter may be given, granted, or donated by the General Government to the State, to aid in the Canal lands construction of the said canal and the buildings and erections belonging to the State thereon situated; the said board of trustees to have, hold, possess and enjoy the same as fully and as absolutely in all respects, as the State now can or hereafter could do, for the uses, purposes and trusts hereinafter mentioned; but it is to be understood that all canal lands and lots hereto. fore sold by the board of commissioners upon which moneys are now due, or may hereafter become due, whether the said lands and lots be now forfeited or relinquished, or hereafter become forfeited or relinquished, shall be exempt from the and lots beretofore sold exempted from said grant settled aforesaid provisions of this act, and the trustee herein provided to be appointed by the Governor, or any other officer, or officers, having the management of the affairs of the canal, until said trustce be appointed on the part of the State, is Accounts due hereby authorized and required to settle all accounts due to contractors & contractors and others (except for such damages as are here- others how inafter provided for) by issuing certificates of indebtedness, which, together with the certificates of indebtedness, scrip, and acceptances heretofore issued by the said canal commissioners, shall be received by said trustee, or other officer or officers aforesaid in payment for said lots and lands whenever they may be presented for that purpose. The said lands and lots hereby reserved shall, within three months after the passage of this act, be appropriated as is provided in the thirteenth section of this act, and sold in accordance with the laws of this State regulating the sale of canal lands. Subscribers to SEC. 11. The subscribers to the said loan shall execute an enter into a Governor Forfeiture on failure to pay agreement to and with the Governor of this State to pay the greement with amount respectively subscribed to the said board of trustees, at such times and in such proportions as said trustees shall direct, Terms of aand said agreement shall specify the manner in which said trus- greement tees shall give notice to the said subscriber of every call for a payment; Provided, that in case any subscriber under the provisions of this act shall fail, neglect, or refuse to pay any instalment instalment at the time called for by said trustees, he shall forfeit all payments previously made and all benefits and advantages arising under the provisions of this act; Provided, however, that the said trustees shall be bound to make a call for at least one hundred thousand dollars per quarter for the first year after their appointment. Certificate to certificate SEC. 12. Whenever and as often as the said subscribers to be issued to stockholders the said loan shall make a payment of any portion of their subscriptions, in pursuance of a call of the said trustees, the said board of trustees by their president and secretary under the seal of said board, shall execute a certificate to each of the said Nature of subscribers for the amount paid by them on their respective subscriptions with one year's interest at the rate of six per cent. added to the principal, stipulating for the payment of the same within six years, with interest at the rate of six per cent. per annum, to be computed after one year from the date of said certificate, and to be paid semi annually thereafter; interest how Principal and the said principal and interest to be paid by the said trustees paid out of the first moneys to be realized by them from the lilinois and Michigan Canal, its assets, revenues, tolls, and lands granted to the said trustees by this act, which said certificate shall also be countersigned by the Governor, and the impress of the great seal of the State shall be affixed thereon by the Secretory of State. Trustees to nal and how SEC. 13. The said board of trustées when appointed are proceed to hereby authorized to take possession of the said canal, lands, complete enproperty, and assets, granted to them by this act, and proceed to complete the same. They are hereby authorized to make after the com nal Lots &c. to be auction to be sold such changes and alterations of the original plan of said canal as they may deem advisable, without reducing its present capacity, or materially changing its present location, having No lots, &c. due regard to economy, permanency of the work, and an to be sold till adequate supply of water at all seasons. None of the lots, three months lands or water powers so granted to the said trustees pletion of ca- shall be sold until three months after the completion of the said canal; the said lots, lands and water powers shall then be offered for sale by the said trustees at public auction, in lots sold at public and legal sub-divisions once or oftener in each year for the four succeeding years; said sales to be made for cash or on Terms of sale credit in the manner prescribed in the act of the ninth of January, eighteen hundred and thirty-six. The said lands, lots and Appraisment water power before they are offered for sale as aforesaid, shall of property be appraised by three disinterested persons, to be appointed by the judge of the circuit in which said lands, lots and water power are situated, who shall take an oath faithfully and impartially to discharge the duty of appraisers. Said lands, lots and water power, when so appraised, shall not be sold for less than the appraisement. After the expiration of the said four may sell lands years, the said trustees shall expose the residue of said lands, at discretion which may remain on hand to sale at such times and in such manner as they may deem proper. The said board of trustees are authorized to convey lands and water powers sold by them execute con- as aforesaid, after the purchase for the same be fully paid, but not before; and the said lands and lots shall be exempt from taxation of every description by and under the authority of Water power any law of this State until after the same shall have been sold not to be di- and conveyed by the said trustees as aforesaid; Provided, also, that in the construction of the said canal no change shall be made in its location so as to direct the water power from canal Provision for lands; Provided, that in all cases where improvements were persons who made upon the said canal lands or lots previous to the first day of improvements February, eighteen hundred and forty-three, the owner of such After four years trustees Trustees authorised to veyances verted from canal lands have made on canal lands Canal when keep account; actions improvements shall be entitled to purchase the said lands or lots on which said improvements are situated at an appraisement to be made as aforesaid without reference to said im provements. SEC. 14. The said trustees shall proceed to the completion and how to be of the said canal in a good, substantial, and workman-like completed manner, so that the same shall, if practicable, be ready for use Trustees re- and navigation within two years and six months from the time quired to this act goes into operation. The said trustees shall keep a of their trans-just, full and accurate account of all the costs and expenditures of completing and superintending the said canal, and of the rents, issues, revenues and profits received by them from the said canal, and from the property granted to them by this act, and of the amounts received by them under the said loan, and shall annually make a report to the Governor, in manner and form plete canal in specified in the forty-third section of the said act of January 3 years lands &c. to revert ninth, eighteen hundred and thirty-six; Provided, that in case the subscribers, under the provisions of this act, shall fail Shall report In case of to failure to com to State |