ELIHU E. JACKSON, ESQUIRE, GOVERNOR.

197

same are now held by this State, and shall also transfer and

deliver to said company said repair bonds issued under the act of

eighteen hundred and seventy-eight, chapter fifty-eight, and shall

assign to said company the whole of said labor claims and judg-

ment, and also all the bonds issued under the said act of eighteen

hundred and forty-four, chapter two hundred and eighty-one,

which the holders thereof shall have delivered to the treasurer

upon the payment as hereinbefore provided of their pro rata share

of the sum paid to him by said Washington and Cumberland

railroad company for the redemption of said bonds, and shall
also assign to said Washington and Cumberland railroad company
all the liens which as hereinbefore provided, the State shall acquire

Redemp-
tion.

by the purchases and payment with the money furnished by said

Washington and Cumberland railroad company for the purchase

of said repair bonds, labor claims, judgment and preferred con-

struction bonds, so that the said Washington and Cumberland

railroad company shall be subrogated to all the rights of the

holders of said repair bonds, labor claims, judgment and preferred

construction bonds; and the treasurer shall thereupon transfer

to the said Washington and Cumberland railroad company for

ninety-nine years, renewable forever, the whole of the capital

stock of said Chesapeake and Ohio canal company belonging to

this State.

SEC. 2. And be it further enacted, That the said Washington

and Cumberland railroad company shall have power to issue bonds

to an amount not exceeding eight millions of dollars, covering

the entire length of its said road, in such sums and form and

Issue

payable at such time and bearing such rate of interest not exceed-

bonds.

ing six per cent, per annum, as the president and directors of

said company shall direct, and to secure the said bonds and the

interest to accrue thereon, by a first mortgage upon all its cor-

porate franchises and all its corporate property of every descrip-

tion and upon the franchises, property, tolls and revenues, land and

water rights acquired by it under the lease from the Chesapeake

and Ohio canal company authorized by this act; and to the end

that no doubt may exist as to the priority of said mortgage when

executed, the State of Maryland hereby waives, postpones and

defers its claims and liens upon the said canal, its works, lands,

water-rights and other property, and upon its tolls and revenues

in favor of said mortgage when executed and the bonds and

coupons issued thereunder, so as to give to the said mortgage and

said bonds and coupons the priority of lien upon the said canal

Priority.

and its works, water-rights and other property, and upon the tolls
and revenues that this State now has thereon, and to make the

said mortgage and bonds the first lien thereon in preference to

the claims and liens of this State, and of all other liens and claims

whatever.

SEC. 3. And be it further enacted, That the said Washington