In force Feb. [February]27, 1841.
An ACT to provide for the construction of a railroad from La Salle to Dixon.
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Name & style
Location
Sec.[Section] 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly, That all persons who shall become stockholders pursuant to this act, shall be, and they are hereby constituted a body politic and corporate for the term of fifty years, by the name of the “Illinois and Rock River Railroad company,” for the purpose of constructing and maintaining a railroad between the village of La Salle, in the county of La Salle, and the village of Dixon, in the county of Lee, terminating at such points on Rock river, the Illinois river, or on the Illinois and Michigan canal, and to be on such route between said points as the majority of the directors of said company shall determine to be best adapted to the public accommodation, and take, transport, carry and convey property and persons upon the same, by the power and force of steam, of animals, or any mechanical power, or any combination of them.
Time to commence and complete
Sec. 2. If the said corporation shall not within one year from the passage of this act commence the construction of
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said railroad, and shall not within five years from the passage of this act finish the said railroad and put the same in operation, then the said corporation shall thenceforth forever cease, and this act shall be null and void.
Capital stock
Shares deemed personal property
Sec. 3. The capital stock of said corporation shall be five hundred thousand dollars, which shall be divided into shares of fifty dollars each, which shares shall be deemed personal property, and be transferred in such manner as the said corporation shall in its by-laws direct.
Comr’s to open books.
Distribution of stock
Notice.
Inspectors of first election.
Sec. 4. Horatio Newhall, of Jo Daviess county, Michael Kennedy, of La Salle county, William Wilkinson of Lee county, and Oliver Everett, of Lee county, shall be commissioners whose duty it shall be within six months after the passage of this act, at some suitable place in the villages of La Salle and Dixon, and in such other places as they or a majority of them shall direct, to open books to receive subscriptions to the capital stock of the said corporation, and thirty days’ public notice shall be given by the said commissioners of the time and place of the opening of such books, in one of the public newspapers in either of the said villages, and in the State paper; and the said commissioners shall at the time of any subscription require the payment to them, of the person or persons subscribing, two dollars and fifty cents per share subscribed, and unless the same shall be paid the subscription shall be invalid; and in case a greater amount in the whole shall be subscribed than five hundred thousand dollars, the said commissioners shall distribute the stock in such manner as the majority of them shall deem most advantageous to the public interest; but in case the capital stock of said corporation shall not be subscribed, then the said commissioners shall be authorized to re-open the said books at such other times and places, and in such manner, and after such notice as they or a majority of them shall direct; and whenever the said capital stock shall have been subscribed and distribution made as aforesaid, or as soon thereafter as practicable, it shall be the duty of said commissioners to give thirty days’ notice in some public newspaper or newspapers for a meeting of the stockholders at such time and place as the said commissioners or a majority of them shall appoint, to choose five directors, and such election shall be then and there made by such of the stockholders as shall attend for that purpose, either in person or by lawful proxy; each share of the capital stock entitling a stockholder to one vote, and the said commissioners shall be inspectors of the first election of directors of the said corporation, and shall certify under their hands, the names of those persons duly elected, and deliver over the subscription money and books to the said directors, and the time and place of holding the first meeting of the directors shall be fixed by the said commissioners.
Surveys of route
May take lands
Lands taken, how paid for
Sec. 5. The directors are hereby authorized to make or cause to be made such examinations and surveys on the
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aforesaid railroad route as they shall deem necessary and proper for the purpose of carrying into effect the object of said corporation; and they are hereby authorized to enter upon and take possession of, and use and take possession of all such lands as may be deemed necessary for the construction and maintenance of said railroad, and may also hold and take all voluntary grants and donations of land to aid in the construction and maintenance and accommodation of their said railroad; and all lands entered upon and taken for the use of the said corporation, which are not donated to said corporation, shall be paid for by the said corporation, at such price as may be mutually agreed upon by said corporation and the owner or owners of such land; and in case of disagreement, the price shall be estimated, fixed and recovered in the manner provided by the law for the recovery of damages happening by the laying out of highways.
Corporate powers.
Sec. 6. Said corporation shall have a right to sue and be sued in their corporate capacity, and to enact such by-laws, rules and regulations for the management of the affairs of the company as are not inconsistent with the laws of the State.
May take railroad belonging to State
Proviso.
Further proviso
Sec. 7. It shall be lawful for said company to take possession of such road, or parts of said railroad, as have been heretofore constructed, and the materials belonging thereto, for the said construction, and now the property of the State, and apply them in the construction of the railroad by the said company: Provided, That it shall not be lawful for said company to possess itself of any portion of the property or works of the State until all the improvements made by the State, the right of way, and all materials shall have been valued by some competent engineer at a fair cost value, and such amount shall be considered as so much stock owned by the State, and the State shall be entitled to receive her proper proportion of the nett proceeds arising from said railroad when completed, as the relative accounts of the State and said company shall have to each other: Provided, also, That if said company shall prefer it they may take the States' portion of the stock at such valuation, payable at the option of the company at any time within fifty years, they paying five per cent. interest thereon after the period of ten years; interest to be paid annually, and the State holding a lien on said work as a security for its ultimate payment.
State to furnish railroad iron
Sec. 8. The State of Illinois hereby agrees to furnish the said company with the necessary railroad iron for a single track and such turnouts as the directors may think advisable; said iron is to be of such description as the State has now on hand.
Company to pay for iron
Yearly interest
Sec. 9. And in consideration to the State for said railroad iron, the company binds itself to pay to the State the cost of said iron and such charges as may accrue in twenty annual instalments, with six per cent. interest from the time said
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company shall receive said railroad iron, and the said company shall pay, or cause to be paid, said interest and installments into the treasury of this State.
Private property held responsible
Sec. 10. And it shall be the duty of the directors of said company to set apart a sufficient amount of its funds or revenue to pay the yearly interest and instalment due the State for railroad iron as heretofore expressed in section nine. Any failure on the part of the directors to comply with this section, their private property and that of the stockholders in said company shall be liable to the State for the amount.
Capital stock to be taxed
Sec. 11. The capital stock of said company that is paid in shall be taxed for county and State purposes, as other personal property of this State.
Persons injuring road how punished
Sec. 12. If any person shall wilfully, maliciously or wantonly, and contrary to law, obstruct the passage of any car on said railroad, or on any point thereof, or any thing belonging thereto, he, she or they, or any person assisting, shall forfeit and pay to the said company for every such offence, treble such damages as shall be proved before any court competent to try the same, to be sued for in the name and behalf of said company, and such offenders shall be deemed guilty of a misdemeanor, and liable to indictment in the same manner as other indictments are found, in any county or counties where such offence shall have been committed, and upon conviction, such offender shall be liable to a fine not exceeding five thousand dollars for the use of such county where such indictment may be found, or may be imprisoned not exceeding five years, at the discretion of the court before whom the conviction may be had.
Tolls
Sec. 13. It shall be lawful for the company hereby incorporated, from time to time, to fix, regulate and recover the tolls and charges by them to be received for transportation of property or persons on the railroad aforesaid, hereby authorized to be constructed, erected, built, made and used, and to apply its surplus funds to such purposes as the company may think proper.
Stock how paid in
Sec. 14. It shall be lawful for the directors to require payment of the sums to be subscribed to the capital stock, at such times, and in such proportions, and on such conditions as they shall see fit, under the penalty of the forfeiture of all previous payments thereon, and shall give notice of the payments thus required, and of the place where and the time when the same are to be paid, at least thirty days previous to the payment of the same, in two public newspapers in the State.
Persons embezzling, how punished
Sec. 15. Any person or persons, agent or officer of said railroad company hereby incorporated, who shall apply or use any of the funds or property belonging to the said company, or any railroad iron or other property that may be hereafter received from the State of Illinois, for the construction of said road by said company, to his or their individual
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purposes, shall on conviction of such offence be fined to twice the amount of such embezzlement, and imprisoned in the penitentiary of this State, at the discretion of the court having cognizance of such offence, for not less than two or exceeding ten years.
Half of subscription may be received in bonds and mortgages
Sec. 16. For the purpose of facilitating the construction of said railroad, as contemplated and authorized by this act, said company is hereby authorized to receive in payment one half of the subscription to the capital stock in bonds and mortgages, bearing seven per cent. interest annually, on unincumbered real estate in the State of Illinois, at one half of its appraised value, which value shall be ascertained by three disinterested and sworn appraisers, who shall be appointed by the judge of the circuit court in the district where such lands may lie. Said company is authorized to obtain a sum of money or monies, on the issue of its bonds or other evidences of debt, to twice the amount of its capital stock paid in, in money, bonds and mortgages, and to pledge all its property, real and personal for the payment thereof.
Individual property liable
Sec. 17. The individual property of the president, directors and stockholders, shall be, and is hereby made liable for all contracts or liabilities of the company for the construction of the railroad herein contemplated, in proportion to the amount of stock held by each person respectively.
Express condition of charter
Depot at La Salle
State may purchase railroad
Sec. 18. The foregoing charter is granted upon the express condition that in consideration of the States relinquishing to the company formed in accordance with this act, the whole of the materials of every description owned by the State along the present line of said road, procured for the purpose of constructing the railroad, and for relinquishing to said company all the privileges of right of way, work already done on said railroad line, and for the use of a sufficient quantity of land in the town of La Salle belonging to the State, for a depot not exceeding two acres. The State reserves the right to purchase of said company the railroad constructed under this act, at any time twenty years after the completion of said railroad, by paying to said company the subsequent cost for completing said road, with six percent. interest on said cost, from the time the expenditures shall take place, if the Legislature of this State shall at the expiration of twenty years, or at any time thereafter, from the completion of said railroad, make provisions by law for the repayment to said company of the amount of money expended by them in the construction of said railroad, together with all monies expended by them for permanent fixtures for the use of said railroad, with interest at the rate of six per centum per annum, then said railroad, with all fixtures and appurtenances, shall vest in and become the property of the people of this State.
Statement to be filed
Sec. 19. It shall be the duty of the president of said company and at least two of the directors, to make out under
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oath a yearly statement of all monies actually expended in the construction of said road and for permanent fixtures, and cause said statement to be filed in the Auditor's office of this State.
Annual expenditure
Charter may be forfeited
Company completing road to hold same
Sec. 20. The State further reserves the right, that in case the company does not progress in good faith to prosecute to completion said railroad within five years, and expend at least ten thousand dollars within twelve months from and after said company shall be organized, and at least ten thousand dollars in the construction of said road within each twelve months thereafter, then, and in that case, the said railroad, and all parts and portions of the same which may be now completed, in whole or in part, by said company, with all the material, property, or work done, with every valuable effects whatsoever, now belonging to and procured for the purpose of constructing said road by the State, and which is granted to said company, and all the improvements, and material, and other valuable effects whatsoever, subsequently furnished by said company, shall revert and become again the property of the State; and all rights and privileges herein granted to the said company shall become void, and the charter forfeited; but if said company does complete said road according to the provisions of this bill, then all the interest, property, material, right of way and ground for depots, and every privilege herein granted to said company, shall be vested in and ever afterwards become the property of said company. Said completion to be ascertained by a report of some competent engineer, made under oath to the Governor, which report shall be filed by him in the Auditor's office of this State.
Sec. 21. This act to be in force from its passage, and to be deemed a public act.
Approved, February 27, 1841.
1On January 11, 1841, Abram R. Dodge introduced HB 104 in the House of Representatives, and the House referred the bill to the Committee on Banks and other Corporations. On January 26, the committee reported the bill, and the House laid the bill on the table. On February 10, the House referred the bill to the Committee on Internal Improvements. On February 22. the committee reported the bill with amendments to the Senate amendments (This language is confusing as the bill had not reached the Senate yet.) and passed the bill by a vote of 51 yeas to 21 nays, with Abraham Lincoln voting yea. On February 25, the Senate referred the bill to the Committee on Incorporations. On February 27, the committee reported the bill without amendments and recommended passage, and the Senate passed the bill. On February 27, the Council of Revision approved the bill and the act became law.
Journal of the House of Representatives of the Twelfth General Assembly of the State of Illinois, Begun and Held in Springfield, November 23, 1840 (Springfield: William Walters, Public Printer, 1840), 11, 283, 295, 301, 362, 463; Journal of the Senate of the Twelfth General Assembly of the State of Illinois, Begun and Held in Springfield, November 23, 1840 (Springfield: William Walters, Public Printer, 1840), 377, 408, 447.

Printed Document, 6 page(s), Laws of the State of Illinois, Passed by the Twelfth General Assembly (Springfield, IL: William Walters, 1841), 199-204, GA Session 12-2,