A Bill for,
An act for the construction of th[e] [I]llinois and Michigan Canal
Sec[Section] 1. Be it enacted by the people of the [St]ate of Illinois repre[sen]ted in the General Assembley, [th]at the governor of this state be, and he is hereby authorized and empowered to negociate a loan on the credit and faith of this state, as herein after provided, for the purpose of aiding in co[nn]ection with such other means as may be here[a]f[ter] received from the government of the United states in the construction of the Illinois and Michigan Canal, a sum not exceeding five hundred thousand dollars, which shall be required to be paid at such times by instalments, as the same may be needed in the progress of the said work as near as the same can be estimated.
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Sec. 2. The Governor shall cause to be constituted certif-
icates of stock for the said loan, to be called the “Illinois
and Michigan Canal stock.” signed by the audi[tor]
and countersigned by the treasurer, bearing an inter
-est not exceeding five per cent, per annum, paya[ble]
semiannually at Vandalia, or at some bank in . . .
city of New York, or either, as may be agreed up. . .
and re-imbursable at the pleasure of the state, [at?]
any time after the year one thousand eight hundred
and sixty. And the faith of the state is hereby
irrevocably pledged for the payment of the stock hereby
created, and the interest accruing thereon.
Sec. 3. The Governor shall take and use all proper means and measures for the transfering of the said stock
Sec. 4. It shall be deemed a good execution of the said
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power to borrow; for the Governor to cause the said certificates of stock, when created to be sold; Provided that the said stock shall not, in any [case be sold] for less than its par value.
Sec. 5. It shall be the duty of the Governor to cause the said moneys, from time to time, when paid or advanced to be deposited in some safe bank or banks, until wanted for use, at the best interest that can be obtained for it, to be drawn out as hereinafter provided, taking therefor the proper securities for the safe keeping of the s. . .
Sec. 6. The money thus loaned, the premiums an. . . from the sale of any stock thus created, the proceeds of the canal lands and town lots, and [of?] of the moneys in any way arising from the contemplated canal, shall constitute the canal fund and shall be used for canal purposes, and for no [other whatever?], until the said canal shall have been completed: Provided That nothing [herein contained] shall be so construed as to prevent appropriations [from] being made, out of the said fund for the semi-annual payment of the interest upon the canal stock herein authorized to be created; and the Governor is hereby authorized to cause the said interest to be paid out of the said fund.
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Sec. 7. That there shall be elected at the present session
of General Assembly, by joint vote of the legislature,
three practical and skilful citizens of the state to
constitute a board to be known by the style and
description of “the board of commissioners of
the Illinois and Michigan canal[one] of whom
shall be president, one trea[surer] . . . one to be
acting commissioner, who shall be severally
designated in the joint . . . for each
respective office to whi[ch] he may [be] elected,
whenever [a] [v]acancy shall occur in the said

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board of co[mmis]sioners by [death?] [resignation?] or from any other cause the Gove[rnor] of this state shall fill such vacancy during the rec[ess] [of the] [Legis]lature.
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Sec. 8. The board of commiss[ioners] . . . [el]ected as
aforesaid shall hold their office . . . [the] first Monday
of January 1837, and until their successors shall be
elected, and thereafter the said board of commissioners
shall be biannually chosen in such manner as is
herein provided in the preceeding section of this act.
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Sec. 9. The acting commissioner shall be allowed
a sallary of twelve hundred dollars, and the rest of
the board shall each be allowed a compensation of
three dollars per day while necessarily employed
in the business of the canal
Sec. 10. The said [board of] commissioners is hereby constituted a body politic and corporate ^with full [?] authority in their corporate name ^ to contract and be contracted with, such and be sued, defend and be defended, plead and be impleaded, in all the matters and things relating to them as canal commissioners; and they shall have and use a common seal of such device as the Governor may direct.
Sec. 11. The board shall appoint a secretary, whose duty it shall be to keep a true record of all their proceedingsThey shall hold quarter yearly meetings, and special meetings whenever any two of them, or the acting commissioner may desire it, any two of them shall shall constitute a quorum to do business.
Sec 12. Before entering upon the duties of their office each of the said Commissioners shall make oath or affirmation, faithfully, honestly. . . to execute and discharge all the duties and obligations herein imposed upon them, and each of them
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as canal commissioners; and they shall severally give bonds to the Governor and his successors in office for the use of the state, in the su[m] of ten thousand dollars, with sufficient sureties for the faithful discharge of the duties imposed upon them by this act: Provided, that the Governor may, at any time, require additional bonds of the said treasurer, whenever he may think that the safety of the funds require it.
Sec. 13. Whenever all or any part of the money upon any contract shall become due, it shall be the duty of the treasurer to draw his warrant or check therefor, in favor of the contractor, upon the bank or banks in which the canal fund shall have been deposited, which warrant or check, shall be countersigned by the acting commissioner, and shall be under the seal of the board.
Sec. 14. It shall be the duty of the acting commissioner to obtain from the Cashier of the bank or banks, in wh[ich] the said fund shall have been deposited, a quarterly report, exhibiting a true account of all moneys received in deposite on account of the canal fund and paid out of the said fund during the previous year, quarter, which report shall be laid before the board of canal commissioners, and within twenty days thereafter, shall be examined by the said board, and compared with the accounts of the treasurer, and an entry shall be made in the books of the said board, that the said examination has been made by them, and that the two accounts corrispond, if such be the case, [and?] each commissioner present shall sign his name . . .of such examination.
Sec. 15. It shall be the duty of [the acting] commissioner 1st to . . . the [directors of the board], all
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neces[sary] contr[acts] for the supply of materials, and the perfor[ma]nce [of labor?] 2nd To inquire into the official conduct of the agents, clerks, superintendants, and all subordinate officers, and to recieve and hear all complaints that may be prefered against them, 3d To enforce the faithful execution, by all persons concerned, of the duties and obligations imposed upon them by this act. 4th To examine frequently and carefully, into the state of the canal, and the progress of the works thereon. 5th. To have the immediate care and superintendance [of ] the canal and all matters relating [thereto].
Sec. 16. The said canal shall not be less than forty five feet wide at the surface, thirty feet at the base, and of sufficient depth to insure a navigation of at least four feet, to be suitable for ordinary canal boat navigation, to be supplied with water from Lake Michigan and such other sources as the canal commissioners may think proper, and to be constructed in the manner best calculated to promote the permanent interest of the country; reserving ninety feet on each side of said canal to enlarge its capacity, whenever in the opinion of the board of canal commissioners the public good shall require it: Provided, That all persons who have purchased or who shall hereafter purchase lands fronting the said canal, shall be permitted to lease from the said board the said reseved ground on each side of said canal from year to year, or until the said ground shall be wanted to enlarge the capacity of said canal for the best price that can be obtained, to be paid into the canal fund.
Sec. 17. They shall take efficient and proper measures for the immediate construction of the . . . canal, shall put such parts of it, as they may deem proper, under contract, as herein provided, and shall have the
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general care and superintendence thereof.
Sec. 18. They shall inspect and exa[mine] into the accounts, books, state of the treasury, and all of the proceedings of the treasurer, and of the acting commissioner.
Sec. 19. They shall furnish the acting commissioner with all proper means and facilities that may be necessary to enable him to discharge the duties herein imposed upon him.
Sec 20. They shall have full power and authority in their good judgement to do, in relation to the construction and completion of the said canal, all things not otherwise herein provided for.
Sec 21. It shall be lawful for them to enter upon and use any lands, water streams, materials of any description necessary for the prosecution of the works contemplated by this act.
Sec. 22. They may employ such and so many agents, engineers, surveyers, draftsmen, and other persons as they may judge necessary to enable them to discharge their duties as commissioners and may pay such compensation as they shall judge reasonable to each p[erso]n so employed.
Sec. 23. Publick notice shall be given of the time and place at which proposals will be received for entering into contracts; which notice shall be previously published for at least six weeks in the news paper printed at Chicago and in such other papers, either in this state or elsewhere as may be deemed proper.
Sec. 24. Pro. . . contracts shall be sealed and shall

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be, . . . and certain as to the price to be
paid . . . and shall be accompanyed with
good and sufficient security to the faithful performance
of such contract.
Sec. 25. The commissioners shall not enter into any contract for the supply of materials or the performance of labor without previous[ly] taking satisfactory security for the faithful perform[ance] of such contract according to its terms.
Sec. 26. The board m[ay] if they think the interest of the state requires it, retain one half of the amount due upon any contract, until the contract shall have been completed, at which time all arrears shall be paid up, and in no case shall more than three fourths of the amount due upon any contract be paid until the work shall have been completed according to contract.
Sec. 27. All contracts concerning the contemplated canal shall be made in writing under the seal of the board, and of each contract, three copies shall be executed by ^the^ parties, one of which shall be retained by the board, and one shall be immediately forwarded to the auditor of public accounts, and by him filed in his office.
Sec. 28. All materials procured or partially procured under a contract with the commissioners, shall be exempt from execution; but it shall be the duty of the commissioners, to pay the money due for such materials to the judgment creditor of the contractor under whose execution such materials might have been sold, upon his producing to them
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due proof that his execution would have so attached, and such payment shall be held a sealed payment on the contract.


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Sec. 29. In case of the death of any canal contractor
who shall at the time of his decease be indebted to any
laborers for work done on the canal, it shall be
lawful for the board if they think proper to pay such
laborers out of any money that may be due to the
deceased contractors and the receipt of such laborers shall
be a good voucher in offset to the sum due to the deceased
contractors from the board on the final settlement
between them and his executors and ^or^ administrators,
Provided, That the ^said^ person shall first obtain a judgment
against the administrator of such deceased contractor,
and produce a certificate from the clerk of the Court
that the judgment was rendered for work done on
the canal or for materials furnished therefor and
for no other cause.
Sec. 30. The board shall from time to time make such rules and regulations not inconsistent with the laws of this state, in respect to the persons employed about the canal . . . said canal or locks, and the . . . navigation of the same, and [?] . . . of money for the breach of such . . . regulations as they may judge reasonable but no forfeiture imposed shall for a single offence exceed the sum of fifty dollars over and above the amount of actual damage done.
Sec. 31. They shall ^cause^ a sufficient number of such rules [a]nd [reg]ulations to be posted up for public ins[pection] . . . shall transmit a copy of them
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from ti[me] to time to the Governor, as they may be made in their next quarterly and annual reports.
Sec. 32, All rules regulations and forfeitures established by them as aforesaid shall be filed in the office of the auditor and a copy thereof certified by him under his hand and seal of office, shall be recieved in all courts of law as due proof that such rules, regulations and forfeitures were by them established.
Sec 33. The commissioners shall examine the whole canal route, and select such places thereon as may be eligible for town sites and cause the same to to be laid off into town lots, and they shall cause the canal lands, in or near Chicago, suitable therefor, to be laid off in town lots.
Sec. 34. That the canal commissioners be authorized and required to proceed to sell from time to time, such portions of the town lots in the town of Chicago and Ottawa, as in the opinion of the Governor, and of the board of canal commissioners will conduce to the to the best interest of the canal fund, The said the said lots to be previously valued and appraised in the manner directed by the provisions of this act.
Sec 35. Public notice of all sales of canal lots or lands shall be given in such news papers (not less than three in number) either in this state or in other states as the board may think best, at least six weeks prior to any sale.
Sec. 36. This General Assembly shall appoint three disinterested persons who have not atthis time and who shall not during their continuance
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in office have or possess any lands on the line of canal or within ten miles thereof, and who shall take an oath fairly to appraise such lots as shall be selected by the canal commissioners, and they shall receive for their services three dollars per day for the time so employed. All lots shall be appraised prior to the sale thereof by the appraisers aforesaid, and shall be sold at public auction for one third cash, one third in six months, and one third in twelve months, the purchaser giving bond with approved security for the payment of the purchase money. But they shall not be sold for less than the appraised value thereof.
Sec 37. In all sales of canal lots, the secretary and treasurer shall act as register and receiver, and shall be governed by the same rules that now govern the registers and receivers in the United States land offices in this state, except as is herein provided.
Sec. 38. It shall be the duty of the treasurer upon the payment of the purchase money, to grant to the purchaser or purchasers a certificate containing a description of the land or lots purchased and the price for which the same was sold, and shall forward a duplicate of such certificate to the auditor of the state, who shall record the same, and the person holding such certificate shall upon presenting the same to the Governor receive a patent for the land described therein signed by the ^Governor and Countersigned by the^ Secretary of state with the seal of the state affixed thereto.
Sec 39. All moneys paid to the treasurer for the purchase
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of any canal lands or lots, shall be by him immediately deposited in some bank under the direction of the Governor for the payment of the interest of the canal loan.


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Sec. 40. None of the board of canal commissioners shall
be allowed to purchase any of the canal lands or lots
herein authorized to be sold, nor shall they, or either
of them in any way directly or indirectly, be concern-
ed in any such purchase or have any manner
of interest therein, and all sales in which the said
commissioners, or any of them, shall be in any way
interested, shall be absolutely null and void, the pur-
chase money shall be forfeited, and the land shall
revert to the canal fund. Any commissioner who
shall be guilty of a violation of the provisions of this
section, shall be deemed to have perpetrated a
fraud, and upon indictment and conviction thereof, in any court having competent jurisdiction, shall be punished by forfeiture of his office, and fined in a sum not less than one thousand, nor more than five thousand dollars, Provided, that a prosecution for such offence shall be commenced within the years after the commission of the same.
Sec. 41. If any two or more persons shall combine themselves together for the purpose of lessening competition at the sale of any of the canal lands or lots, or if they shall agree or have any understanding among themselves, that they will not bid upon one another at any such sale, for the purpose of obtaining the said canal lands or lots, at a low price, the same shall be deemed a fraud, any person or persons convicted thereof, in any court having competent jurisdiction, shall be fined in a sum not less
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than one hundred, nor more than one thousand dollars; one moiety to the use of the person informing, and the other moiety to the canal fund; and any patent issued for any lands or lots purchased as aforesaid, shall be absolutely null and void, the money paid therefor shall be forfeited, and the lands or lots so purchased; shall revert to the canal fund, and it is hereby declared to be the duty of the states attorney to prosecute for all such offences: Provided that all such prosecutions shall be commenced within ten years after the commission of the offence.
Sec. 42. That the revenue arising from the “Illinois and Michigan canal”, and from the lands granted, or that may hereafter be granted to the state of Illinois by the congress of the United States, for the construction of the said canal, and the nett tolls thereof, are hereby pledged for the payment of the interest accruing on the stock that may be created in pursuance of this act, and for the reimbursement of the principal of the same
Sec. 43. The board of commissioners shall quarterly viz on the first Monday of March, June, September and December in each year, make a minute and particular report to the Governor, which report shall set forth, in a plain and inteligable manner, all of their acts and doings in relation to the said canal, and the canal lands and lots, all the money received and expended, the work done and the price allowed for the various kinds of work, the contracts made, with whom made, and the security given, the number of engineers, draftsmen, clerks and agents of every description by them employed, and the amount of compensation paid to each, the progress of the canal,
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their contemplated plans for the next three months with an estimate, of the probable amount of money that will be required to be expended for canal purposes during that time, together with such other matters and things as they may see fit to add, and also the amount, time and rate of any loan made by virtue of this act, which report or the outlines thereof the Governor shall cause to be published.
Sec. 44. They shall annually, on the first Monday of December, make a report to the Governor, setting forth all their acts and doings in relation to the canal, and canal lands and lots, during the previous year, in like manner as is required of them in their quarterly reports, containing such statements and estimates for the year, as their quarterly reports do for the quarter.


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Sec. 45. The said canal shall commence at or near the town
of Chicago, and shall terminate near the mouth of the
little Vermillion in LaSalle County, and on land owned
by the state
Sec 46. That if any occupant or occupants of said canal lots, shall fail to purchase the lot or lots by him or them occupied in the said town of chicago he or ^they^ shall be allowed to remove any buildings or improvements by him or them made upon such lot or lots, off the same, within sixty days after such lot or lots shall have been sold by such canal commissioners.
[certification]
12/24/1835
Passed the House of Representatives
Decr 24th 1835
D Prickett clk.[clerk] H. R

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[docketing]
15.
A Bill for an act for the construction of the Illinois and Michigan Canal.
[docketing]
[12]/[31]/[1835]
Refd[Referred] to Com[Committee]. on Internal Improvements
[docketing]
[01]/[09]/[1836]
To be enrolled
clk H. R
[docketing]
[12]/[16]/[1835]
Engrossed

Handwritten Document, 16 page(s), Folder 1, HB 1, GA Session: 9-2, Illinois State Archives (Springfield, IL)