Sec.[Section] 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly, That the Board of Commissioners of the Illinois and Michigan canal may order a sale, or sales, or lots of ground for manufacturing purposes, and the use of surplus water to propel machinery, for a term of years not exceeding ninety-nine, at those points and places on the line of the canal where lots have or may be laid off for that purpose, upon the terms and conditions following: Provided, That, until the further action of the General Assembly, not more than three lots shall be sold at any one place or point.

Sec. 2. Each lot, with the privilege of using water to propel machinery to be erected thereon, shall be sold separately, at public auction, to the person bidding the highest annual rent therefor. The place of sale shall be fixed by the Board. A notice, stating the time and place of the sale, and describing the lots and water to be sold, shall be published, once a week, for eight weeks, in at least four newspapers in the State, and four without the State, immediately preceding the sale. Previous to any sale, the commissioners shall value the lots and privileges separately, at a fair and reasonable value, as they are required to do in relation to lots and canal lands; and no sale shall be made for less than such valuation. Upon making any sale, the Board shall execute a lease, under their seal, for such term of years as may have been directed, in the name and behalf of the people of the State, to the purchaser; and, in such lease, the rent bid by the purchaser shall be reserved. Triplicate leases shall be made, and shall be signed by the purchaser, and covenants shall be inserted for the annual payment of the rent, at such place within the State, and to such person, as may at any time be required by law, with condition that, in case of default in making any annual payment for the period of one year, the lease shall become void, and all the rights, thereby granted, forfeited to the State

Sec. 3. Leases shall also contain a reservation of the right wholly to resume the water conveyed, and the privileges thereby granted; and to control and limit the use of such water and privileges, whenever, in the opinion of the Board, or of the Legislature, the necessary supply of water for the use of the canal, or the safety of the canal, or works connected therewith, shall render such resumption, control, or limitation necessary; and a provisions that, when such resumption is made, or control or limitation imposed, no compensation or damage shall be allowed for any improvements or erections made in consequence of such lease; and a further reservation shall be made of the right of the State, without making any compensation to the purchaser, wholly to abandon or destroy the work by the construction of which the water privileges shall have been created, whenever, in the opinion of the Legislature, the occupation and use of such works shall cease to be advantageous to the State.

Sec. 4. Leases shall contain specific descriptions, by actual measurement, of the lots leased, and shall specify the quantity of water to be used per day or month.

Sec. 5. One copy of each lease shall be delivered to the purchaser, who shall, without delay, cause the same to be recorded by the recorder of the county in which the premises leased are situated; one copy shall be filed and kept by the Board, and the other copy shall be by the Board delivered to the Auditor of Public Accounts.

Sec. 6. All the expenses of executing and recording leases shall be paid by the purchaser.

Sec. 7. There shall also be inserted in every lease a condition inhibiting the manufacture of spirituous or vinous liquors upon lots leased.

Sec. 8. The Board shall have power to fix a time within which the lessee, his heirs or assigns, shall put in operation the machinery intended to be used upon lots leased, and to insert a condition of forfeiture in every lease, on failure to comply with the conditions thereof, either as to time or manner; and also to insert conditions requiring the lessee, their heirs and assigns, to keep the buildings and machinery under insurance in some safe office; and in case of failure in this condition, that the Board or the State shall have the right to effect such insurance, and to add the cost and expense of such insurance to the amount of rent reserved.

Sec. 9. The Board shall take and use all means and measures requisite to carry into effect the objects of this act, and shall fix the places at which water is to be taken from the canal, and provide for the withdrawal thereof in such manner as to prevent injury to the canal, and also provide safe conveyances for the return of the water into the canal, or for its running off without injury to the State or individuals.

Sec. 10. The Board shall have power to direct the material with which the walls of the houses erected on leased lots shall be made, with a view to permanency, and to avoid injury from fire.

Sec. 11. Sealed proposals shall be received for purchases under the provisions of this act, and each proposal shall specify the use intended to be made of the lot and water, the time within which the first buildings shall be commenced and completed, and the time of commencing the use of water for manufacturing purposes; and, also, the dimensions of the buildings as to width, length, and height, and shall also be accompanied with the name of two or more responsible persons, to be bound as security for the performance of the covenants, so far as relates to the erection of buildings.

Sec. 12. Each purchaser shall give a bond, with two or more securities, payable to the State, with conditions that the purchaser will, within the time limited, erect one or more buildings, such as may be agreed on, and, in case of default, that the State shall be paid three times the amount of rent reserved by the terms of the lease, from the date thereof to the date of obtaining judgment upon the bond.

Sec. 13. The provisions of the thirty-ninth and fortieth sections of the act, entitled “An act for the construction of the Illinois and Michigan canal,” approved on the ninth day of January, one thousand eight hundred and thirty-six, shall be applicable to sales made under the provisions of this act.

Sec. 14. The power of taxing the lots and privileges sold under the provisions of this act, and all improvements made

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thereon, is reserved to the State; but this power to be exercised according to the provisions of the constitution, and the same rules to be observed in assessing and collecting the taxes as are applied to other property in the State.

Approved, February 22, 1839.