that time, up to the present season, the board of internal improvement have from year to year recommended to the legislature the propriety of making large appropriations upon those favorite works, with the unqualified assurance that the income to the state from the same would pay the interest upon the entire debt of the state, and at the same time be adequate to the wants of the adjacent country by furnishing the conveniences necessary to carry the surplus to market; but the last report of the board of internal improvement, based upon the experience of the past, shows a very different state of things, to wit: That the roads are not only in a dilipidated condition, but wholly incompetent, from the mode of construction, to do a heavy freighting business, thus inadequate to the wants of the country; and that a very large outlay beyond the means of the state, in her present embarrassed condition, is immediately necessary in order to make them profitable or even useful to the country, and thus unequivocally recommend a sale.

The committee have examined the proposition of Mr. Titus and find that he proposes to take or lease the Central railroad and machinery and pay for its use the sum of $12,000 per month, and give security that he will keep it in as good repair as at present, except natural wear and decay. This proposition may appear fair upon its face, and be construed as favorable to the interests of the state; but by referring to the report of the board of internal improvement we discover that the Central railroad in its present condition cannot do the business of the country. Mr. Titus does not propose to improve the present condition, but to return it in as good repair as at present, except natural wear and decay. The experience of this state has established the fact beyond a reasonable doubt, that the natural wear, tear and decay is equal to 10 per cent per annum upon the entire cost of construction. The Central road cost $2,000,000; 10 per cent per annum, is $20,000. The proposition of Mr. Titus is 144,000, or 56,000 dollars less than the natural wear and decay, or in other words, $56,000 per annum less than is absolutely necessary to keep the road in its present condition; while the interest upon the cost of construction is $120,000 per annum, leaving an annual dead loss for the state to pocket, of $176,000 a year, without any equivalent. He next proposes to run the road upon certain con

ditions in conjunction with the State, but in this proposition, like the -other, he fails to propose to do what must be done before the road can be made either profitable or useful to the State, viz: to renew the superstructure in such a manner as to make the road answer the end for which it was intended. Therefore, your committee are of the unanimous opinion that the proposition is not such a one as would answer the purposes of the State, and report adverse to the same, and ask to be discharged from the further consideration of the subject.

C. P. BUSH, Ch'n.

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1846.

No. 21.

To the Honorable, the Legislature of the State of Michigan:

The undersigned citizens of said state desire respectfully to make and submit for the consideration of your honorable body, a proposition to lease of said state for a term of thirty years the Central Railroad, with its appurtenances &c. And for that purpose the undersigned do hereby propose and agree to lease of the said state the said Central Railroad, together with all and singular its fixtures, appurtenances, locomotives, cars, tools and every thing else thereunto belonging, or in any wise appertaining for the term of thirty years, upon the following terms and conditions, viz :

1st. The undersigned will pay said state for the use of said road, fixtures, appurtenances, locomotives, cars, tools and other things thereunto belonging, the interest on the cost of the same, at the rate of six per cent. per annum; the same to be paid weekly, monthly or quarterly, as your honorable body may determine.

2nd. The undersigned will obligate themselves to construct and complete said road from the village of Kalamazoo to the St. Joseph river, opposite the village of St. Joseph, or to the state of Indiana, within five years: provided, a grant from the said state of Michigan can be obtained for the construction of the same, on the most eligible route from the said village of Kalamazoo.

3rd. The undersigned will also obligate themselves to relinquish said road at the expiration of said time, and surrender possession thereof to the said state of Michigan with a T rail thereon in good order, together with all the fixtures, appurtenances, locomotives, cars, tools and other things thereunto belonging or in any wise appertaining.

4th. The undersigned will also further obligate themselves to reduce the present rates of toll for freight on said road, at the rate of five per cent per year for the first ten years; and at the expiration of ten years, to reduce the present rates of toll on passengers, ten per

cent.

5th. The State, in consideration of the further construction and completion of said road, shall convey to the undersigned or their heirs or assigns, all the unsold internal improvement lands which has been already located under the grant of the United States, and one-half of said lands yet to be located by said state, under and by virtue of said grant; said lands to be so conveyed by the state in proportion as the work of the further construction of said road

1

progresses.

6th. The undersigned will further obligate themselves to give secu rity to the state to keep the road in good running order and condition at all times, and that said road or any part thereof shall not become dilapidated so that the interests of the state shall suffer in consequence of said lease.