The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1850-10-12

cise of the powers granted by the charter; thst
neither he the directors could deprive IL stock
holders 81 their rights, by surrendering up their
charter without lhelr consent. That the paper Was
worthless, therefore, far a. IL purported 70 sur
render the rights Of the company or to restore
those OF our State. The paper, however, possessed
one merit. Il furnished the evidence that the COM
pany were willing TO execute valid release in due
form, when called upon to do 30. also took the
liberty of pointing out some objections to the terms
and conditions of the release. For instance =
One OF the conditions was, that in case Congress
SHALL at its present session. donate to the Stale of
Illinois, or give redemption to lands, tor the dur
pose of aiding in the construction of railroad from
Cairo to Chicago, that the Cairo City and Canal
Co. shall and will authorize the Governor of ILL
nois to offer said lands TO the bondholders Of the
State debt, condition that said bondhoders will
agree to receive said lands, and make the proposed
road from Cairo TO Chicago, &c, &c.
The first objection / urged TO this clause was,
that the release was to be void, unless Congress
made the grant at the present session This, how
ever, was OF minor Importance, compared TO the
next. IL recognizes the title TO the lands, the
ment Congress makes the grant, as being vested in
the Cairo City and Canal Company, and gives the
promise of the company that il will permit the
Governor to offer the lands to the bond holders, on
condition that they should receive them and make
,he road. Suppose that the bond holders should
refuse 10 receive the lands, and make the road
In that event, the release would be void, and the
charter and the road, and the lands grated would
all remain the property of the company. Ii not
reasonable 10 suppose that such ght be the case,
when an understanding between the bond holders
and the company would enable them to get all the
lands, and divide them among themselves, and
still retain all their chartered privileges. Without
mputing any such design 10 any of the parties con-
cerned, frankly told the agents of he Cairo Com
Pany, that no arrangement could receive my APP
provel, by which our State could possibly be de-
prved Of any OF the benefits and advantages which
might result from grant of lands by Congress ia
aid Of railroads in the State To enable US to pro-
tect the rights Of our State in this respect as we'll
"A m he
grant OF land from Congress, | told them that the
Cairo City and Canal Company ought TO execute
10 the State of Illinois full and complete release
and surrender Of the charter OF the Great Western
Railroad Company, and Of all acts, and parts of
acts, supplemental and amendatory thereof, or re.
latng to the Central Railroad, together with all
the rights and privileges granted by all or aay OF
said acts, as fully and completely as if they had
never been passed by the Legislature, leaving the
State, through its Legislature, 10 make such dspo-
ton of the lands, end such arrangements for the
construction of the road with the bondholders or
others, as the people of Illinois should deem best
! also impressed them the opinion that in order
10 make such a release valid and binding upon the
company, it would be necessary to call a meeting
of the stockholders in pursuance of the charter,
and that they should pass resolution authorizing
and directing the presiie and directors Of the
company TO execute their release, and that the in
strument should recie the authority in obedience
to which il was made. OF course, did not pre-
tend to possess any authority 10 enforce or impose
these or any other terms upon the company, nor TO
give the assurance that they would maet with the
appreciation Of yourself, or the Legislature, the
people of Illinois. On the contrary, | expressly
informed them that had no authority TO act on
the premises. 1t is proper however, TO stale that
did inform them that my action would be modi-
ned, in great measure, by the execution Of such
a release that was about TO introduce bill for
a grant of land for railroad from Lake Michigan
TO the Ohio River, upon such line and TO ter
inmate al such point as the Legislature should
prescribe; that my object in his would be to
secure the benefit of the grant 10 the State,
and, at the same time, keep them out OF the
hands Of the Cairo City Canal Company, I'M
less the Legislature should hereafter choose 10
convey them 70 the company; but that If the
company should determine 10 execute such re-
lease in due form, as TO protect the rights and
interests of the State, in this respect, | should
provide for the grant on the line of the Central
Railroad, with the southern terminus AT Cairo, as
row provided by law. Messrs. Rockwell and Bill
lings, the part Of the company, expressed their
entire concurrence in the reasonableness Of these
views, and added their belief that the company
would unhesitatngly execute the release in the
form suggested, az measure beneficial TO the In
eTests OF the State and company both and essential
to the securing Of grant Of land from Congress
Thus the matter stood until yesterday, when | re.
ceved the release, which herewith enclose, ex-
ecuted IN duplicate-ope copy Of which ! was
requested toretan, To be used, If necessary, in Con-
gress; andthe other TO forward 10 you the execu
tive Of the State. ! entertain the hope that this will
remove many, IL not ALL the Obstacles in the way Of
securing the grant Of land and making the Central
Railroad. ! am assured that they have the pros
pect Of making a favorable contract for the iron
for the whole work, and OF commencing peratons
during the present season. shorld repose implicit
confidence in these sssura noes no ", II We had not
bees so often dupcd and dsappoip ed before. But
the principal, interest, and contract Of the
peny IL said 10 have passed into new hands, il rs
possible that we are now authorized 10 hone that
something is about TO be accomplished With this
desultory explanation Of this transaction far as
| have any knowledge OF IL, ] enclose the release
10 you as the executive of the State.
have the honor To be, very respectfully, your
friend and obedient servant,
S. A. DOUGLAS.
His Excellency A. C. FREscn.
tD.-Cory.l
In consideration of the snpulations and cond
tons hereinafter stated, the Cairo City and Canal
Co by their President thereto duly authorized by
a resolution OF the stockholders Of said company
at meeting held on the 9th day Of December,
le;9 hereby release and surrender TO the State OF
Illinois th- charter OF the Great Western Railroad
Company, end all acts or parts Of acts supplement
tai OF amendaiory thereof, relating to the Central
Railroad, together with all the rights and prvi-
leges Of any kind granted by said charter or acts,
as fully and completely as IL the same had never
been passed by the Legislature, On the following
conditions, 10 wit list. That the Legislature OF
said State shall within the period Of ten years
from the first of January, A. d. 1861, construct and
finally complete, or cause TO be constructed and
completed, q railroad from Cairo 10 Chicago, and
that the southern terminus Of said road shall be the
city Of Cairo. ID. That the Legislature Of said
State shall, during IT, next session, elect whether
TO accept decline this release, upon the condi-
tons herein stated. I'd. That until said State
through their Legislature, shall have made their
election, this company may, with the appreciation
Of the Governor Of the State, proceed ia the con-
struction cf said road and II said charter shall be
released O. aforesaid 10 said State Of Illinois the
said state shall, within one year from time Of said
election, refund TO this company the amount which,
between that period and the present time, shall
have been expended in the construction Of said
road, with six per cent interest thereon and shall
all bg.s.t AIS I.r. IA. h.
this company in the construction Of the came
which shall have been previously approved by the
Governor Of said State.
caused this instrument 10 be executed by their
President authorized aforesaid, and their corpo-
rate seal to be hereto affixed, AT the CITY Of New
", a. n A II A IN an