over to said trustees ten per centum of the amount of their said subscription; and thereafter, from time to time, as further sums shall be needed for the prosecution of said canal. They shall, on the requisition of said trustees, pay over to them such sum or sums as they may call for, not exceeding, however, at any one time, five per cent. on the entire subscription. And if said subscribers, for the space of ninety days after any such call by the trustees, shall fail to pay the sum or sums so required, they shall forfeit all sums previously advanced, and also all the priority and preference which by this act is given them. And if any one or more of such subscribers shall fail to pay as specified in this section, it shall be lawful for any one or more of the other subscribers to said advance, or others, to pay the same; and such payment shall give to the person or persons so paying the like lien on said canal, its lands and revenues, for the amount so at any time paid, as the original subscribers might have if paid by them; and the trustees appointed under the provisions of this act shall pay to him, her or them, his, her or their proper share of the avails thereof. And if, by reason of the failure of said subscribers to make said advances, said trustees shall not be able to effect the completion of said canal within the period herein before mentioned, then and in that case the lands and property hereby granted to said trustees shall revert back to, and become again the property of the State. And no such failure, or any act or omission, or consequences of such failure, act or omission, on the part of the subscribers to said advance, shall at any time in any manner operate as a pledge of the faith of the State for any sum or sums hereby provided to be paid out of the revenues or lands of said canal; but the execution of the deed, as specified in section eight of this act, shall of itself operate as a release of the faith of the State from the payment of any part of such sum, and all other sums and interest, except the principal of the stock and the interest of two and one-half per cent. per annum, as provided in the first section of this act. For the amount of any such call, said trustees shall give to said subscribers the proper certificate under their corporate seal, and from that time only shall interest be computed on such advance. But for the principal of any such advance, or the interest on the same, the faith of the State is or shall be in nowise pledged.

SEC. 10. The said board of trustees shall be a corporation, and shall have a corporate seal, and conveyances of any of the lands or lots granted to them as aforesaid shall be in the name of "the Board of Trustees of the Wabash and Erie canal," and shall be under their corporate seal. Before entering on their duties, they shall take an oath or affirmation faithfully and impartially to discharge the same, and shall each also give bond to the State, with surety to be approved of by the governor, in the penal sum of $25,000, for the proper discharge of their duties, and the faithful application of, and accounting for, all moneys which shall come to their hands by reason of said trust. It shall be the duty of said trustees to take charge of said canal, with all its appurtenances, and canal lands and property, and adopt and put in. execution such plans and measures as they shall deem most expedient for the prosecution and completion of said canal, with its necessary side cuts and feeders, to Evansville, within the period herein before prescribed; and for this purpose they shall appoint and employ all needful

officers and agents; and may require them to give security, and take an oath for the faithful performance of their duties; and either of said trustees shall be empowered to administer such oath. They shall make all contracts for work and labor on said canal, and for the materials to be furnished therefor. They shall call in on said subscription a sum sufficient to insure the completion of said canal within the period herein specified, and not less than six hundred thousand dollars. (including said payment of ten per cent.) to be paid within two years from the time said trusts take affect. They shall receive the moneys advanced by subscribers as aforesaid, for the completion of said canal, and shall disburse the same, They shall attend to the sales of the canal lands embraced in the aforesaid deed of trust, which they may in their discretion, (subject to the limitations hereinafter specified,) sell for ready money or on credit. They shall from time to time establish a tariff of tolls on said canal, receive all the tolls and revenues of said canal, and all other moneys arising under the trusts in this act created, and shall pay the same out in faithful execution of their said trust, keeping a record of all their doings and proceedings, which shall at all times be open to the inspection of the public authorities of this State. They shall keep a full, just, and true account of all moneys by them received for or by reason of their said trust, and of their disbursements of the same, and shall annually report to the legislature the general condition of said canal and canal lands, and exhibit a full account of their receipts and disbursements, and shall do all the acts needful and proper in and about the sale of said canal lands, and the completion of said canal to Evansville, with necessary side cuts and feeders, particularly the side cuts and locks to the Wabash river, on sections 136 or 137, between Coal creek and Terre Haute, and on sections 33 or 34 and 46, as heretofore surveyed, between Coal creek and Lafayette, heretofore contemplated; and the side cut and basin, from station 578 to the bank of Eel river, opposite Point Commerce, as surveyed and reported by R. H. Fauntleroy; and in and about the care and preservation of said canal, its side cuts, and feeders, after the same shall have been finished; and in and about the police, general government, and regulation of the same. The trustees shall have power from time to time to make, ordain, and establish such reasonable rules, by-laws and regulations, in relation to the collection of the tolls, transportation on said canal, the conduct of boats and rafts, and the general police of said canal, as are usual, or may be found necessary, and to enforce the observation of the same.

SEC. 11. The State hereby accepts the grant made by the general government, by the act entitled "An act to grant certain lands to the State of Indiana, the better to enable the said State to extend and complete the Wabash and Erie canal from Terre Haute to the Ohio river," approved March 3, 1845; and the lands selected by the State under said act shall be classified, under the direction and supervision of the governor, into three classes, taking into view quality and location ; and the lands of the first class shall at all times be subject to sale, at a price not exceeding two dollars and fifty cents per acre; the lands of the second class shall at all times be subject to sale, at a price not exceeding two dollars per acre; and the lands of the third class shall at all times

be subject to sale, at a price not exceeding one dollar and twenty-five cents per acre; Provided, however, That none of said lands, or any others, shall be sold at any time at a less price than is provided in the acts of Congress donating the same. Saving and reserving to actual settlers and occupants, at the time of the passage of this act, of any of said lands granted to said trustees, the right to enter and purchase the tract of land, not less than a quarter quarter section, nor more than a half quarter section, by him actually settled and occupied, (and which he shall continue to occupy at the time of said entry,) at the price per acre at which the same has been or may be valued or classified, irrespective of the improvements that may have been made by such settler; which right shall continue for the space of one year from the time when the deed of trust aforesaid shall be delivered to said trustees; and for which such settler shall only be required to pay, at the time of entry or purchase, one-fifth part of the purchase money in hand, and the residue he shall be required to pay in five equal annual instalments, with interest annually in advance on the whole balance of the purchase money remaining due and unpaid: Provided, however, when two or more persons, not entitled to any right of entry, shall apply at the same time to purchase the same tract, it shall be sold to that one of the applicants who shall bid and pay, or secure to be paid, (as the case may be,) the highest price.

SEC. 12. The trust hereby created shall cease and be determined, whenever the moneys advanced for the completion of said canal, with the interest and the special stock aforesaid, shall have been paid and refunded, and the State shall have taken up and retired one half of the stock issued by virtue of the first section of this act, and shall assume the payment of interest at the rate of five per centum per annum on the balance; which the State reserves the right of doing at its pleasure. Whenever any vacancy shall occur in the board of trustees, by death, resignation, or other cause, such vacancy shall be filled by the general assembly, or by the subscribers aforesaid, or their assignees, to whom belonged the election of the trustees whose seat shall become vacant, as the case may be.

SEC. 13. The tolls and revenues of said canal shall be applied to the repairs and expenses thereof, and the extension of the same, until after the first day of January, 1847; from which period, and up to and including the first day of January, 1853, said tolls and revenues, after defraying all needful expenditures and outlays for repairs, attendance, and other necessary things appertaining thereto, shall be applied, subject to the limitations contained in the eighth section of this act, to the payment of the two-and-a-half per cent. interest unprovided for by the State, on the principal of the surrendered bonds, from the first day of January, 1847, to the first day of January, 1853; at which time the deficiencies (if any) of said tolls and revenues to discharge said interest, shall be added to the unprovided for two-and-a-half per cent. on the principal of said bonds surrendered, from the first day of January, 1841, to the first day of January, 1847, and the sum thereof shall be converted into the special stock herein before referred to the principal and interest of which shall be only payable out of the said canal lands, and tolls and revenues of said canal, as herein before provided; and for

which proper certificates of stock shall be issued. But for the redemption of said principal, or the payment of said interest, the faith of the State is in nowise pledged.

SEC. 14. It shall be lawful for any other person than a bondholder to subscribe to the advance aforesaid; and such party shall have the right to register with the trustees a brief description of bonds or certificates of stock under such subscription, at any time within one year from the first day of November next; and further, any bondholder shall have the right, within two years from the first day of November next, to register with said trustees a description of his or her bond, or certificate of stock, and pay up to said trustees his pro rata share of said advance, together with interest from the time when the original subscription took effect; and which registry and payment shall place such party on the same footing as if he had originally subscribed thereto.

SEC. 15. The first board of trustees organized under this act, shall fix the time and place, and, by suitable rules and regulations, to be entered upon their records, prescribe the mode and manner of subsequently electing trustees on the part of the subscribers aforesaid, and those who may hereafter become subscribers, or their assignees; which rules and regulations shall at all times be subject to be altered or amended by said board.

SEC. 16. The interest and principal to be paid out of said canal lands, and tolls, and revenues of said canal, by said trustees, 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 1st day of July, 1847.

SEC. 17. The majority of said board of trustees shall have power and authority to act and decide in all cases; and the action or decision of the majority shall be binding on said board, and be deemed to be the action or decision of said board; excepting, however, that no sale or conveyance by said trustees of any land to be deemed by them as aforesaid, shall be valid or binding, unless concurred in, and the contract of sale or conveyance be signed by the trustee on the part of the State.

SEC. 18. The State reserves the right of altering and regulating the tariff of tolls that may at any time be established by said board of trustees, which, however, shall always be in accordance with the tariff of tolls on similar works.

SEC. 19. All expenses attending the selections of lands under the act of Congress aforesaid, all expenses of surveying said canal remaining unpaid, all expenses of classifying said lands, and all other expenses connected with, or growing out of, the trust hereby created, shall be borne and paid by said trustees, out of the proceeds of said lands, or the tolls and revenues of said canal.

SEC. 20. This act shall be a public act, and shall be liberally construed in all courts of justice; and the State shall and will supply, by future legislation, all such defects, found to exist, as shall enable the trustees aforesaid to carry into full effect the fair and obvious intent of this act; and the governor is hereby required to give all necessary information to the parties interested, and to do any act or thing which may be necessary to carry this act into effect, and to facilitate any proceeding contemplated by this act.

SEC. 21. The troops of the United States, and their munitions of war, shall, at all times, be transported on said canal, free of any charge

whatever.

SEC. 22. Said trustees shall employ a chief engineer, of known and established character for experience and integrity, who shall be required to execute a bond to the State, to be approved of by the governor, in the penal sum of ten thousand dollars, for the faithful performance of his duties as engineer; and shall be subject to be removed by the governor during the vacation of the legislature, or by the general assembly, when in session, for misconduct, inefficiency, or neglect of duty. The said engineer, before entering upon his duties, shall take an oath that he will faithfully and impartially perform the duties of his office, without respect of persons, and that he neither is, nor will be, interested, directly or indirectly, in any job, work, or contract, let, or to be let, on said canal, or connected therewith, during his continuance in office.

SEC. 23. Said trustees shall have the right to locate and construct such feeders, feeder dams, side cuts, and reservoirs, as may be necessary to supply said canal with water, and may take such timber, stone, or other materials, as may be necessary for the construction of said canal, by making to the proper owners reasonable compensation therefor, on the same terms, and in the same manner, as the superintendent of said canal is now authorized by law to do; and the word “canal," wherever used in this act, shall be construed to mean and include all its feeders, feeder dams, side cuts, and reservoirs.

SEC. 24. Every person who shall wilfully and maliciously injure or destroy any lock, culvert, or embankment of said canal, or shall wilfully or maliciously make any aperture or breach in any embankment of said canal, with intent to injure or destroy the same, shall, on conviction, be punished by imprisonment in the State prison at hard labor, not more than five years, or by fine not exceeding five hundred dollars, and imprisonment in the county jail not more than two years; and shall be, moreover, liable to said trustees for the damages occasioned thereby-which damages, when recovered, shall be considered as a part of the revenues of said canal, and applied accordingly.

SEC. 25. The time of final payment on all sales of Wabash and Erie canal lands heretofore made, shall, upon the request of the holder of any certificate of purchase, be extended for the term of five years from and after the term when the same shall fall due: Provided, however, that the interest shall be paid annually in advance, as now required by law.

SEC. 26. The State may at any time file her bill in chancery in the Marion or any other circuit court in this State, against said trustees, to enjoin them from any violation of said trust, and also to compel them to execute the same.

SEC. 27. Should either of the said trustees, or any officer or agent appointed by them, embezzle or fraudulently convert to his own use, or secrete, with intent so to convert to his own use, any of the funds, choses in action, securities or effects which may come into his hands or possession, under or by virtue of the trusts created by this act, the trustee, officer or agent so offending, shall be deemed to have committed the crime of grand larceny; and, upon conviction thereof, shall