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 under the provisions of this act, are hereby created a body politic and corporate, and shall have existence for and during the full end and time of fifty years from and after the passage of this act; and shall be known by the name and style of the "Rock River Navigation Company," for the purpose of improving the navigation of said river, by completing the improvements already commenced by the State on said river, in any way they may deem most advisable, at the Lower Rapids of said river, in Rock Island county, at the Upper Rapids in Whiteside county, and also the improvement of the rapids at Rockford in Winnebago county, and for the purpose of removing such obstruction to the navigation of said river as said company may think most conducive to the public interest, at all points between the junction of said Rock river with the Mississippi and the northern boundary of the State of Illinois on said river, by building dams, locks, canals, and the creation of slack water navigation.

Sec. 2. That said stockholders and their successors, by the name and style of the "Rock river navigation company," shall have power to contract and be contracted with, and be capable in law and equity to sue and be sued, to plead and be impleaded, to answer and be answered unto, to defend and be defended, in all courts and places, and in all matters whatsoever; said corporation may have a common seal, which they may alter and change at pleasure.

Sec. 3. The capital stock of said company shall be two hundred and fifty thousand dollars, and to be divided into shares of one hundred dollars each; and said capital stock may hereafter be increased to any amount not exceeding four hundred thousand dollars, should the stockholders deem

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the same necessary, and to be by them expended in improving the navigation of Rock river, in the erection of mills, buildings, mechanical works, and the building of boats adapted to the navigation of said river, when and where, on or near said river, the said stock holders shall deem the same useful or necessary, and the said capital stock, or the shares thereof, shall be held and considered as personal property.

Sec. 4. Books for the subscription to the capital stock of said company, shall be opened on the first Monday in June, one thousand eight hundred and forty-one, and continue open for at least two days, at Rockford, in Winnebago county, at Dixon, in Lee county, and at Stephenson in Rock Island county, after giving at least thirty days' notice of the time and place of opening said books in three of the newspapers published in this State, and nearest to the place of receiving said subscription; and should the whole of the capital stock of said company not be subscribed for at the time and places beforementioned, then the commissioners hereinafter named, or the president and directors hereafter created, shall have power to adopt such measures for the further disposition of said capital stock as to them shall seem most advisable, and the sum of five dollars on each and every share of said stock shall be paid at the time of subscription, and the residue at such times and in such instalments as the president and board of directors hereinafter created shall call for the same, and unless the instalments shall be so paid when called for by said directors, said stock so subscribed for shall be forfeited to said company.

Sec. 5. S. M. Church, of Rockford, L. Andrews, of Grand de Tour, John Dement and Samuel M. Bowman, of Dixon, Nelson Mason, of Sterling, in Whiteside county, and Silas Read, of Stephenson, are hereby appointed commissioners to superintend the subscription to the capital stock of the company hereby created, and as soon as twelve hundred and fifty shares of said stock shall have been subscribed for, and the first instalment of five dollars as aforesaid shall have been paid in, the commissioners, or a majority of them shall give public notice that an election will be held in the town of Dixon by said stockholders, at which election the said commissioners shall be judges for the purpose of electing seven directors to manage the affairs of said company. Each share shall be entitled to one vote, which may be given in person or by proxy, and the seven persons voted for who shall have the highest number of votes, shall be duly elected, and shall be directors of said company, until others are elected and qualified, and the said directors so elected shall choose one of their number as president of said company, and shall have power to appoint such other officers and agents as they may deem necessary for the good management of ther business, and the said commissioners shall certify to the names of those thus elected directors, and shall deliver over to

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them all subscription moneys, books, papers, &c., and shall appoint the time and place of holding their first meeting.

Sec. 6. And for the purpose of more fully and completely attaining the object in the creation of this company, the directors thereof shall have power to receive in payment for one-half of the subscription to the capital stock, bonds and mortgages bearing seven per cent. interest annually, on unencumbered real estate in this State, at one-half of its appraised value, which value shall be ascertained by three sworn and disinterested persons who shall be appointed by the circuit judge of the district in which said lands lay, and to obtain a loan to the amount of the capital stock paid in, in money, and bonds or mortgages, and to pledge the same, together with all its improvements for the faithful repayment thereof.

Sec. 7. The management of the affairs and business of said company shall be by a board of directors chosen annually, and who shall hold their office for one year, and until their successors are duly elected and qualified; and the board of directors shall have power to make and establish such by-laws, rules and regulations for the government of said company, and the management of its business, as to them shall seem most proper and expedient: Provided, the same is not in violation of the laws and Constitution of the United States or of this State or of the provisions of this act: And Provided, also, That the said company shall not at any one time acquire and hold more than the amount of three sections of land.

Sec. 8 To enable the stockholders of this company to become fully and completely entitled to all the benefits and provisions of this act, they shall, within the period of five years from and after the passage of this act, so far improve and overcome the obstructions to the navigation of Rock river at the rapids thereof near its mouth, at the Upper Rapids in Whiteside county, and at the Rapids at Rockford, in Winnebago county, either by dams and locks, or canals, as to afford a complete passage to all steam boats or other water craft drawing less than three feet water, and during the progress of these improvements, no construction of this act shall debar said company from all the benefits which may arise therefrom, and when the same shall be created by the operations of the said company, they shall have the sole right and power to use, dispose of or lease all the water power arising therefrom, and in case said improvements as above specified shall lay out of repair at any one time, making due allowance for extraordinary accidents, for the period of three months, then all rights herein granted shall become forfeited.

Sec. 9. The State of Illinois hereby reserves to itself the right to resume the control of the improvements on said river, together with all the privileges thereunto belonging at any time after the expiration of twenty years from and after the passage of this act, on the following conditions, to wit: by

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paying to the stockholders of said company the cost of the same, with interest at six percent. per annum from the completion of the said improvements, and the said company is hereby required to keep a true and accurate account of all expenditures made on said improvements, and on or before the first day of January of each year, to file in the Auditor's office of this State, a true and correct copy of all expenditures so made, attested by the oath of the president of said company.

Sec. 10. The State of Illinois, for and in consideration of moneys expended by the State on said river heretofore, for the improvement of the navigation thereof, and for the purchase of land whereon to make the same, is hereby made a stockholder to the just and full amount of four hundred shares, which shall form a part of the twelve hundred and fifty shares heretofore mentioned, and all the use and benefit of said improvements and expenditures, as well as all rights and privileges heretofore acquired by the State, are hereby transferred to said company whenever the said company shall organize as aforesaid; and it shall be the duty of the aforesaid commissioners or directors, to give the Governor of this State not less than fifteen days' notice of the time and place of holding all elections, and it shall be his duty forthwith to appoint some suitable person as a director, whose duty it shall be to represent the stock owned by the State in said company, and he shall be eligible to any office or privilege at said board.

Sec. 11. The company hereby created shall be required to commence the improvements on Rock river within twelve months after their organization as aforesaid, and shall expend thereon not less than the sum of five thousand dollars within two years therefrom.

Sec. 12. And whenever it shall become necessary for said company to enter upon and take possession of any land necessary to the creation and maintenance of the slack water navigation of said river, said land shall be paid for by said company, at such prices as may be agreed upon by said company, and the owner or owners thereof; and in case of disagreement the price thereof shall be recovered in the manner provided by the laws of the State for the recovery of damages arising by laying out of highways.

Sec. 13. It shall be lawful for the Rock river navigation company hereby created, from time to time, to fix and regulate uniform rates of tolls on all boats or water craft that may pass the improvements made by said company, and the amount to be charged as tolls at each lock on the different boats or water craft aforesaid, to be as follows, to wit: For steam boats, barges or keel boats, forty cents per ton, United States' measurement; for each flat boat less than forty-five feet in length, three dollars; for each flat boat more than forty-five feet in length, and less than ninety feet in length,

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five dollars; for each raft of timber, plank or other lumber, measuring sixty feet in length and twenty in width, four dollars; Provided, That said dam or dams, lock or locks, be kept in good repair, and that the same be suitably tended so as not to detain unnecessarily any boat or craft in passing through the same: And Provided, further, That the tolls shall be so graduated as not to enable the stockholders to realize more than fifteen per cent. per annum, on the amount expended in improving said river, and in permanent fixtures for the benefit of the navigation thereof.

Sec. 14. It is hereby further provided, that the stockholders of said company shall have the right to purchase the interest of the State as a stockholder in said company, by paying the subscription price thereof, and whenever the stockholders shall desire so to do, the Governor of this State is hereby authorized to sell and transfer the same to said stockholders, if he shall deem such sale for the best interests of this State and not otherwise.2

Approved, February 27, 1841.