1844.

THOMAS G. PRATT, ESQUIRE, GOVERNOR.

CHAP. 281.

authority to use and apply such portion of said revenues
and tolls as in their opinion may be necessary to put
and keep the said canal in good condition and repair for
transportation, provide the requisite supply of water, and
pay the salaries of officers and agents, and the current ex-
pences of the said company.

Bonds not to
be paid out to
contractors at
a rate less rate
than par va-
lue.

SEC. 3. And be it enacted, That the bonds authorised
to be issued under the first section of this act, shall not
be sold, hypothecated, or paid out to contractors, at a
less rate than the par value thereof, estimating the par of
a five per centum sterling bond at one-sixteenth less than
the par of a six per centum currency bond, of the same
denomination; and no bonds shall be issued for the com-
pletion of the Chesapeake and Ohio Canal to Cumberland,
as hereinbefore provided for, until after one or more of
the incorporated companies of Allegany county, or other
corporations or individuals, shall by an instrument or in-
struments of writing, in due form, with ample security,
to he approved by the agents representing this State in
the Chesapeake and Ohio Canal Company, or a majority
of them, and the Governor, guarantee to the said com-
pany an aggregate transportation on the entire length be-
tween Cumberland and the District of Columbia on said
canal, of not less than one hundred and ninety-five thou-
sand tons of tonnage per year, on an average of years for
five years, dating from the end of six months after the
said canal shall have been completed to Cumberland, and
the navigation opened to that point.

Rights and
liens waved.

SEC. 4. And be it enacted, That the rights and liens of this
State upon the revenues of the Chesapeake and Ohio canal
company, shall be held and considered as waived, deferred,
and postponed in favour of the bonds that may be issued
under the aforegoing sections, so as to make the said
bonds and the interest to accrue thereon, preferred and
absolute liens on said revenues, according to the provisions
of the second section of this act, until said bonds and
interest shall be fully paid.

Interest to be
paid semi-an-
nually.

SEC. 5. And be it enacted, That semi-annually in each
year, as the same shall be payable, the said Chesapeake
and Ohio Canal Company shall pay the interest on the
bonds constituting preferred liens as aforesaid, to the
party or parties respectively entitled thereto, or to their
agent or agents authorised to receive the same; and as soon
as the nett revenues of said company, arising from the ca-
nal and its works, (between Georgetown and Cumberland
as aforesaid, ) shall be more than sufficient to pay the in-
terest that may become due and in arrear upon said bonds,
with the costs of remittance and exchange, (if there be