The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1844-05-24

GENTLRMEN IL he state OF ILLINOIS
having undertaken, upon her credit, to
construct public work, called the "lll-
nois and Michigan Canal issued by the
authority Of law, large amount of bonds,
payable with interest, at certain specified
periods, and, from time to time, sold them
in the market, to raise the necessary funds
> TO prosecute the enterprise. The faith
and honor of the state is pledged for their
redemption; but she having failed to pro-
vide for the payment Of the annual inter-
est, her credit is thereby materially aliec-
ted, the bonds greatly deprecated, and
the work, unfinished, is suspended.
Under these adverse circumstances, it
being thought impracticable to make ade
Iaate provision TO fnlfl her promises.
the state, by her legislature in 1913, made
law, apparently with the hope Of relev-
ing both herself and creditors, by complel-
ing and making productive the canal.
This law authorized the appointment
: of commissioners to negotiate with the
bond-hoders for further loan, sufficient
\to complete the work, and to pledge for
The reimbursement Of the same. the future
income of tolls, and certain other canal
property, which was believed to be ade-
:, quae for the purpose. The creditors, it
was hoped, would find motive to en-
courage this arrangement, in the fact that
the revenue of The canal nigh, eventually
prove to be sufficient for the discharge
Of The bonds.
The commissioners who were appoint
ed under this act, opened their negocia-
ton in Europe, and, among other things.
gave the following assurances to the ere
diIors 10 wit
First, That the whole canal debt, and
liabilities for past works, DO not exceed
$5,O0O,OOO."
Second, THAT the cost Of the compile.
ton of the canal would not exceed 81,
100000"
:, Third, "That there is every ground to
believe, that with that outlay, the canal
would be completed in three years"
Fourth, "'That the estimate Of It's an
= nual income would be a, least sufficient
to meet the interest and principal Of the
loan Of $1,000, 000."
Fifth, "Tha, the holders of canal stock
in the United States have agreed To adj
vance their portion Of $1,000, 600, on one
million of stock, aud that such engage
men1 can be relied upon" And
Sirth, "That the terms Of the proposed
trus,-deeds should give full and salislacto.
ry security to the subscribers.
In stating these propositions for the
consideration Of the bond-holders, the
commissioners make a condition, that tie
subscription Of the loan shall be void, uu-
less trustworthy and competent agent,
after examination, shall verify the above
statement.
Such creditors, therefore, as propose 10
subscribe, enter into conditional arrange
men, to advance a portion Of the pro-
posed sum, provided such agents, as
should be appointed in this behalf, by
Messrs. William Sturgis, Abbott Law
renee. and Thomas W. Ward, of Boston,
should make favorable report, verifying
the several propositions of the commits
sioners, and should also be Of opinion, that
the governor of Illinois has power to
make a contract which shall not lie sub
ject to certain limitations and lorIeIures
named in said act.
In the latter part Of October, these gen
tlemen caused letters to be addressed to the
undersigned. requesting them to perform
this service, and desired Mr.. Davis, as
preliminary step, to go to New York,
where the bonds held in the U. S. were
supposed TO be chiefly owned, and to ascer-
tain what had or would be done in regard
10 that part of the subscription required to
be made in the United States. In accord.
ance with this suggestion, he proceed
ed to that city, on the second day of No
vember: and finding tina, nothing effect
ual had been done, he agreed with Mr.
Ryan, one Of the commissioners of ILL.,
nois. that a subscription should, with as
little delay as possible, be opened and the
dispositions of the bondholdcrs ascertain
ed. On the seventh Of the same month,
Mr.. Davis, with Capt. Swi(, of the Uni
nited States army, having had an inter-
view with the committee, received in.
structions to proceed to Illinois. each as
soon as his convenience would allow,
without waiting for the result. Of the sub
scripton, for the purpose Of investigating
the propositions which had been submitted
by the commissioners.
Capt. Swift departed Immediately by
the northern route, through Buffalo and