Half to be paid by the State and half by the canal

State half principal......$10,000— Certificate of State stock for this, with 4 per cent. interest up to 1st January, 1853, and thereafter 5 per cent. The deficiency of 1 per cent. to be funded on 1st January, 1853, at 2 per cent.

State half interest.......

3,000-Certificate of State stock for this, with interest at 2 per cent., funded from and after 1st January, 1853.

Canal half principal..... 10,000-Certificate of canal stock for this, with 5 per cent. interest

from 1st January, 1847, payable out of canal revenues. 3,000-Certificate for this, called "special stock," with 5 per cent. interest from and after 1st January, 1853, payable out of canal revenues. If revenues fall short, then the deficiency is to be funded at 5 per cent. 1st January, 1853.

26,000

Holder will receive following income, from 1847 to 1853, per annum, viz: 1st. From taxation, 4 per cent. on $10,000....

$400 00

2d. From canal revenues on $10,000, according to estimate, up to 1853, average per annum, say...

300 00

For the ten years from and after 1853, inclusive, the canal revenues will average, as estimated, $435,280 per annum, which will pay (over and above expenses) the 5 per cent. interest on the entire funded "canal debt, and leave a surplus towards extinguishing the "special stock."

C.

AN ACT to provide for the funded debt of the State of Indiana, and for the completion of the Wabash and Erie canal to Evansville.

WHEREAS, honor and justice alike require that such equitable provision should be speedily made for the discharge of the pecuniary obligations of the State as shall be just and acceptable to its creditors, honorable to the people of Indiana, and, at the same time, within the ability of the State, without further involving the people in a general debt: AND WHEREAS, an arrangement, based upon a moderate system of taxation, and the completion of the Wabash and Erie canal to Evansville, it is believed will secure the objects aforesaid: AND WHEREAS, in order to insure so desirable a result, a large portion of our bondholders have manifested a willingness to aid in the completion of said canal, within the ensuing four years, to the Ohio river: AND WHEREAS, this proposition embraces, as a general arrangement, the payment, by taxation, of two and a half per cent. on the unprovided public debt of the State, and a reliance for the remaining two and a half per cent. on the lands, tolls and water rents, of said Wabash and Erie canal, (after paying expenses of construction and repair,) thereby greatly relieving the people of Indiana from burdensome taxation, and virtually discharging them from any liability for the said remaining interest, and looking alone to

said canal, its tolls and other revenues, for half the interest on said entire public debt: AND WHEREAS, there is reason to believe that the plan embraced in the following provisions is entirely within the means of the State successfully to accomplish-that it will be acceptable to our creditors-honorable to the people represented by this general assembly, and will add to the wealth, prosperity and advancement of Indiana: therefore,

SECTION 1. Be it enacted by the General Assembly of the State of Indiana, That whenever the holder of any bond or bonds of this State (the bonds issued under the original bank charter excepted) shall choose to surrender the same up to the State, there shall be issued to such holder a new certificate of stock, which stock shall be redeemable at the pleasure of the State after twenty years, and which certificate shall specify and set forth the amount of principal of such bond or bonds so surrendered, and also distinct from the principal, the amount of interest which may appear to be due and accruing on such bond or bonds from 1st January, 1841, to 1st January, 1847, inclusive-computing the same at the rate of two and one half per cent. per annum, and on which the State will pay interest as follows, that is to say: On the principal specified in such certificate, the State shall and will pay interest at and after the rate of two per cent. per annum, from the first day of January, 1847, up to and inclusive of the first day of January, 1853, at which period the amount of interest specified in such certificate, and the one half of one per cent. per annum on said principal, from the first day of January, 1847, to the first day of January, 1853, shall be added to said principal, and from that time forth the State shall and will pay interest on said principal and interest so added, at and after the rate of two and a half per cent. per annum, until the same shall be finally redeemed: Provided, however, That no bond shall be surrendered as aforesaid, or certificate issued therefor, that has not attached to it the coupons or interest warrants falling due on and after the first day of July, 1847: And provided further, That if the revenues of the State, up to the first day of January, 1853, to be derived from a property tax of twenty-five cents on every one hundred dollars of value, and a poll tax of seventy-five cents, shall not, by reason of the taxes being paid in per cent. treasury notes, or from other causes, be sufficient, after defraying the current expenses of the government, to pay said rate of interest of two per cent. then and in that case the State shall only be required to pay, up to said first day of January, 1853, such rate of interest as the par funds in her treasury, derived from the taxation aforesaid, shall enable her to do; which shall be paid and distributed pro rata on the principal specified in such certificate of stock, and the deficit, with six per cent. interest per annum from the time it became due, the State shall and will make up and pay to the holders of such certificates, on or by the first day of January, 1853.

six

SEC. 2. Every certificate issued under this act shall be signed in blank, and numbered by the treasurer and auditor of the State, and shall be under the seal of the State; and at the time of its being delivered, shall be filled up and countersigned by the agent of State, whose duty it shall be to receive the bonds that may be surrendered, and issue the certificates of stock therefor-entering, at the same time,

in suitable books, to be provided for that purpose, credits to the respective parties so surrendering bonds, for the principal and interest specified in their respective certificates.

SEC. 3. Coupons or interest warrants falling due on and after July 1, 1841, and up to and including January 1, 1847, that may have been clipped or separated from the bonds to which they were attached, may also be surrendered, and in place of them a certificate of stock shall be issued-computing the interest and amount in the same manner as if such coupons were still attached to the bonds to which they were originally attached; but on the amount of such certificates no interest shall be paid until after January 1, 1853.

SEC. 4. The stock created pursuant to this act shall be transferable only in the city of New York, on books to be provided for that purpose by the State, by the holder or holders thereof, or his, her, or their duly constituted attorney, and in pursuance of such rules as may be adopted or may be prescribed by law. But no transfer shall at any time be permitted, except on the surrender and cancelment of the outstanding certificate.

SEC. 5. The interest on the stock hereby created shall be payable half yearly, at the city of New York, on the first days of January and July of each year, commencing on the first day of July, 1847. But if the interest for any half year shall not be demanded before the expiration of thirteen months from the time the same became due, it shall only be demandable afterwards at the treasury of the State; and for the payment of the interest and the redemption of the principal, as herein provided, the faith of the State is hereby solemnly pledged.

SEC. 6. For the purpose of saving and securing to themselves the remainder of the interest not herein before provided for, and the accruing interest not herein before provided for on the bonds surrendered as aforesaid, computing the same at and after the rate of two and one half per cent. per annum, it shall be lawful for said bondholders, or any of them, and they shall have the privilege of raising among themselves, by a pro rata subscription on the amount of bonds held by them respectively, at any time before the first day of January next, a suffici ent sum, not less, however, than two million two hundred and fifty thousand dollars, to complete the Wabash and Erie canal to Evansville; and upon subscribing and promising to pay said amount, or so much thereof as may be needed, to trustees as hereinafter provided, and to be advanced in such sums as shall insure the completion of said canal to Evansville, and all necessary side cuts, feeders, feeder dams, reservoirs, and all side cuts, which may be hereafter particularly mentioned, within four years from the taking effect of this act; the canal lands, and tolls and revenues of said canal, shall be specifically set apart and conveyed to said trustees, in trust and security, to reimburse to said subscribers their said advances, and to pay the remaining interest on the said bonds, in the manner hereafter specified.

SEC. 7. As soon as said sum shall have been subscribed, it shall be lawful for said subscribers to elect two discreet persons, both of whom shall be citizens of the United States, and one of them shall be a citi zen and resident of this State, as trustees: and, on notice thereof, accompanied with a copy of the subscription aforesaid, given to the gov

ernor, he shall appoint, if in the recess of the legislature, but if not, the two houses shall elect, by joint ballot, a third discreet person; and these three shall constitute a board, to be known by the style and description of the "board of trustees of the Wabash and Erie canal," who shall hold their offices for the term of three years, from the time of their said election or appointment, and until others are elected or appointed in their places: Provided, however, In the case of the trustee on the part of the State, if he shall have been appointed in the recess of the legislature, he shall only hold his office until his successor shall be elected as aforesaid, by the two houses of the next general assembly.

SEC. 8. So soon as said trustees shall have been elected or appointed as aforesaid, it shall be the duty of the governor, in the name and under the seal of the State, to execute and deliver to the said trustees, by the corporate name of the board of trustees of the Wabash and Erie canal, a deed or patent for the bed of the Wabash and Erie canal, and its extensions, finished and to be finished from the Ohio State line to Evansville, including its banks, margins, tow paths, side cuts, feeders, basins, right of way, locks, dams, water power and structures, and all materials provided or collected for its construction, and all the property, right, title and interest of the State in and to the same, with all its appurtenances, and also all the lands and lots, (not sold or disposed of,) heretofore given, granted or donated, by the general government to the State, to aid in the construction of the said canal, or any part of it, or which may be hereafter acquired under, or by reason of, any existing grant, and all moneys due and to grow due, and remaining unpaid on account of any sale or sales heretofore made of any canal lands so donated, and all moneys due or to grow due, on account of any existing leases of any water power or other privilege on said canal, its side cuts, feeders, basins, or other appurtenances; said board of trustees to have, hold, possess and enjoy the same as fully and absolutely as the State can or could do; subject, nevertheless, to all existing rights and equities against the State on account of the same, or any part thereof, or liabilities of the State growing out of, or in relation thereto; and the same to be held by said trustees in trust and security for the uses and purposes following, that is to say:

First. The proceeds of said lands, (sold and unsold,) to be applied to the re-payment of the principal sum or sums that may have been advanced for the completion of said canal, its side cuts and feeders, and to the payment for work, labor and materials, to be done and furnished in and about the further prosecution and construction of said canal.

Second. The balance of the proceeds of said lands, (if any,) and the tolls and revenues of said canal, up to and including the first day of January, 1853, after defraying all needful and proper expenditures for repairs, attendance, and other causes, to be applied as follows, and in the following order, that is to say:

First. To pay in full the interest, at and after the rate of six per cent. per annum, on the sum or sums advanced for the complet on of said canal to Evansville, or on so much of said sum or sums as may at any time remain unpaid; and the remainder, (if any,) to be applied to pay the balance of the principal, (if any,) of the sum or sums advanced for the completion of said canal.

Second. To pay in full to the subscribers making said advances or their assignees, interest at and after the rate of two and one-half per cent. per annum on the principal of the bonds they may have surrendered as aforesaid; and for the purpose of always knowing by whom any bond or bonds was surrendered, it shall be the duty of the agent of the State, at the time of the surrender to him of any bond or bonds as aforesaid, to take a full account of the numbers thereof, and by whom the same were surrendered, which shall be furnished to said board of trustees, whenever the same shall be organized.

Third. To pay in full the interest, at the rate of five per cent. per annum, on the special stock hereinafter named, (being stock created for that portion of arrearages and accruing interest, charged over against the canal, and for which no provision is made by the State,) and to pay the principal of said stock in full, as fast as the same can be donefirst paying the interest and principal in full to such holders of said special stock, or their assignees, as shall have subscribed to the advance aforesaid.

Fourth. To pay in full to any other holder of any certificate of stock, by this act authorized to be issued, interest at and after the rate of two and one-half per cent. per annum on the amount of the principal thereof.

Fifth. To pay into the treasury of the State any balance which may remain on hand; which balance shall be applied by the State to the redemption and retirement of any of the outstanding stocks created by this act at the pleasure of the State: Provided, That if the State at any time hereafter becomes the holder of any of said stock, she may, at her election, deem it to be extinguished, or she may regard it as still outstanding, and be entitled to receive and draw upon it whatever of interest the tolls and revenue of said canal may pay upon it: And provided further, That if the tolls and revenues of said canal shall be insufficient for all the purposes aforesaid, then they shall be applied pro rata among the respective parties entitled thereto. First paying in full those first entitled, and so on toties quoties. From and after the first day of January, 1853, on account of the tolls and revenues of, and expenditures on, that portion of the canal between Lafayette (inclusive) and the Ohio State line, shall be kept separate and distinct from a like account of that portion between Lafayette (exclusive) and Evansville; and from and after that period the tolls and revenues derived from the first named portion, after defraying necessary expenses, repairs and outlays, shall first be applied to make the full interest of five per cent. per annum on the certificates of stock that may be issued for the bonds now outstanding, and known as the Wabash and Erie canal bonds; and, if sufficient for that purpose, the same shall be apportioned and paid pro rata on the amount of said certificates; and, if more than sufficient, the excess shall be added to the tolls and revenues derived from that portion between Lafayette (exclusive) and Evansville; and the sum thereof shall be paid as herein before in this section is provided. But, for the sufficiency of said lands, or tolls and revenues of said canal, to pay the advances aforesaid, or for the faithful application of the same by said trustees to said purposes, the faith of the State is and shall be in nowise pledged. SEC. 9. Before the deed of trust herein provided to be given shall be delivered to said trustees, said subscribers to said advance shall pay