1876.] OF THE SENATE 459

the interest on the new outlay for reconstruction—and will
leave large fortone to be distributed to the intelligent enter-
prise which shall compass this vast beneficense out of materielle
absolutely of no value in the present condition of things.

The question next to be considered is, bow is the money
for these purposes to be procured ?

Let the Legislature dedicate the large interest of the State
in the canal, to the ends of accomplishing these grand pur-
poses. This canal debt, as it now stands, and in the hands
of the State, is absolutely of no value, and only serves to
cripple the credit of the canal, and withdraw a wholesome
public attention from its proper administration. Yet it has
been shown, that if the canal is completed as proposed, a
vitality will be imparted to it, that will give it revenues to
discharge any probable cost of its perfect reconstruction.

First. Therefore let the Legislature adjust its claims upon
the canal and place them in form of bonded debts bearing
interest, payable at long date.

Secondly. These bonds shall be placed under control of the
Board of Public Works, to be disbursed to parties who may
contract with the Canal Company, to perfect the navigation
of the canal on the scale herein prescribed.

Third. To give just value to these bonds, and to remove
all clouds arising from priority of claim upon the future reve-
nues of the canal, the contractors shall be empowered to
negotiate an exchange of a portion of the new bonds, for the
extinction of all debts of prior obligation, so that the new
bonded debt of the State shall hold a prior claim upon all
future incomes of the canal; and the Board of Public Works
shall be directed to deliver to the holders of these new prior
claims—on the order of the said contractors, such amount of
the new bonds, as will purchase up (to be cancelled) all
claims upon the canal existing at this time, having priority
of obligation to the debt due this State; provided, however,
that the discount on the new bonds, allowed in the exchange,
shall not exceed ten per cent.; provided, further, that the
Board of Public Works shall not disburse to said contractors
any of said bonds for work done on the canal, except on cer-
tificate of the Board of Directors of the Canal Company,
based upon an examination and measurement made by
competent engineers.

Fourth. The Board of Public Works shall also have au-
thority to transfer portions of these bonds, at the written re-
quest of said contractors, to parties who may purchase said
bonds for ready money; provided, the discount shall not
exceed twenty-five per cent. The money thus procured shall
be deposited with the Treasurer of the State, and shall be dis-