The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1857-02-03

The Joint Committee Of the General As
sembly appointed to investigate the affairs
of the Des Moin.s River Improvement took
large mass of evidence in the prosecution
of their duties which, together with their
report, was submitted to both branches OF
the Legislature.
The following important points were made
by the report of the Committee;
There never was any legal contract on the
part Of the State with the Des Moines River
Company, for the reason that Gov. Hampstead
did not approve the contrac, made by the
Commissioners, which was an essential re-
quisite of the contract by the statute. Eve
ry subsequent modification of the original
contract also lacks 81 me essential requisites
Of validity.
The Company have violated the contract
as made, and failed to comply with several
distinct provisions of the Statutes of Iswa.
Third, there has been gigantic system of
fraud perpetrated by the Des Moines River
Company.
Certificates of stock in said company
amounting to more than million Of dollars
have been issued while but one hundred and
sixty seven thousand dollars have been paid
in. No books have been kept by the Compa-
ny rs required by law, and in consequence
Of their fraudulent and illegal proceedings,
the Company has forfeited it's charter and
the members thereof have rendered them.
selves individually liable.
The Company has expended for work on
the improvement about $4,000, and for
travelling expenses, liquor bills, and such
like extras, 100000. Certificates have
been Issued to them for POS 900 acres OF
land. These certificates do not pass the IL
tie to the land, but only create an equitable
claim.
The Committee submitted q bill with their
report, for which substitute was proposed.
After considerable discussion bill was final
IL passed which, although not entirely salts
factory to the special friends Of the Improve
ment, was certainly AS favorable as they had
any right to expect after the revelations made
by the Committee of Investigation.
The Bill provides
Section lst. That a Commissioner shall be
appointed by the Governor, who, in coniunc-
ton with the present Commissioner, is au-
thorized to make contract for the speedy
prosecution of the work, and to ascertain and
pay oil Indebtedness to parties for money ad
vanced on work done, or materials furnished
heretofore. In ease Of disagreement between
the Commissioners the Attorney General is
to net as umpire or assistant commissioner
and no contract or settlement to be valid till
approved by the Governor.
Section . The Commissioners are author
ized to sell or mortgage the lands OF the I'm
provement grant, together with the Improve
mcnt itself, to constitute basis for the is-
sue Of bonds to be applied TO lquidate any
Indebtedness, and in payment Of the prose-
cution Of the work.
Section 8. Specifically authorizes Com
mssioners to sell all the lands and lease wa
ter power to any parties who will secure the
entire completion Of the Improvement.
Section 4 Requires that all bonds issued
us above, shall be signed by the Governor,
countersigned by the Commissioners and reg
i.tered with the Auditor of State, and shall
contain the conditions that the grant and
improvement are alone bound, and that the
State is in no way responsible for their re-
demptioa. In case any contract is made the
lands shall be faithfully applied to said pur-
pose al their actual value, either BY being
sold as provided in this act or being accept
ed By contract or at fair valuation.
Section ). Provides for the appraisement
and sale Of lands should contract be made
requiring it.
Section g. Fixes salary Of Commissioner
at 81 200.
Section {. Abolishes Office Of Register Of
Improvement, and devolves the duties on
Register Of State Land Office.
Section g. Requires Commissioners to set
tie with former commissioners and agents of
the improvement, and to transfer and keep
all vouchers, books, &C., to his office.
Section Q. Makes it the duty of Commits
sloner 10 report progress Of work and his
transactions in relation thereto TO the Gov
ernor sem, annually, who shall report TO the
Legislature.
Section 10. Provides that the law shall
take effect when published in the Iowa City
papers.