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creditor of the company for the interest paid by her on guaranteed bonds, and also for $208,000 of bonds, with interest from 1852, held by the State; and whereas, it is represented to this board that if the tolls and revenues of the canal are appropriated to the payment of these debts due Virginia, and other like debts due other persons of like dignity, that said tolls and revenues will be sufficient to infuse large value into interests which are now utterly unproductive, and will relieve the State from her aforesaid liability as guarantee, by providing for payment of interest on the bonds so guaranteed as aforesaid."

Wherefore, the board of public works agreed with the counsel named. "that they, the parties of the second part, shall undertake to secure the aforesaid debts and interests of said State in said canal company, by securing possession of the canal and appropriating its tolls and revenues to the said debts and liabilities, and other debts and liabilities due by the canal company to other parties as well as to said State." And the board appointed them its attorneys to prosecute the matter before any court, or before the general assembly of Maryland, "to secure said interests and debts of said State, by procuring possession of the tolls and revenues of said canal and appropriating them to the payment of the said debts due said State, and liabilities for which she is security as aforesaid, and the like debts due by the canal to other creditors." And it was expressly agreed that they, the counsel, should pay all expenses, costs and charges of every kind; and further, that whenever the said canal, or its tolls and revenues, are delivered over into the possession of the preferred creditors thereof, and of which the State is one, as her inbefore set forth, then and in that case the parties of the second part are to be considered as having performed their obligations under this contract, and to have secured the said debts, liabilities and liens of said State in said canal." And for compensation the board agreed to assign to the counsel, "as soon as said canal, or its tolls and revenues, are delivered or appropriated to the preferred creditors thereof, such per centum of the debts due, liabilities guaranteed, and claims against said canal, held or guaranteed by said State, as shall be determined by a general meeting of the creditors of the company to be proper compensation for like services.

On the 5th of March, 1867, the board made a supplemental contract with the same parties, reciting the original contract, and that all parties preferred to have the rate of compensation fixed at once, without waiting for the general meeting of creditors, wherein it was agreed "that the rate of compensation should be twenty per cent. of the debts due to, liabilities guaranteed and money paid by the State of Virginia to, for and in behalf of the Chesapeake and Ohio canal company, which rate shall be in lieu of that referred to in the original agreement, and which amount shall be paid the parties of the second part in bonds, coupons, or other indebtedness of the canal company in the hands of and belonging to the State, as soon as said canal or its tolls and revenues is delivered or appropriated to the preferred creditors thereof, or trustees for them."

We find that the counsel employed under these contracts prosecuted

the undertaking for five years with diligence and effect. They procured, in 1867 and 1870, legislation by the general assembly of Maryland for the accomplishment of their object, and in 1870 and 1871 they obtained decisions of the court of appeals of Maryland-reported in 32 and 35 Maryland reports-definitely settling the rights of Virginia in the premises. The rights of Virginia have been pressed before the courts and in the general assembly and constitutional conventions of Maryland, as their records testify, and the proceedings of the counsel have been duly reported to the board of public works as the undertaking progressed, and have been approved by them in detail. The result has been that a debt of $500,000, on which the State was guarantor, amounting, with over-due interest, to nearly a million of dollars, has either been paid off or secured to be paid, so that the State will not be called on again to make good her guarantee, as appears by the letter of the governor of Maryland, dated November 13, 1872, on file in the office of the board of public works; and counsel have collected and paid into the treasury the sum of $82,347 10, with which bonds have been purchased representing $222,000 of the old debt. In January, 1873, the board of public works, being satisfied that the contract had been complied with, made a final settlement with the counsel, receiving from them the sum of $17,757 in cash and a release of all claims against the State under their contract, and assigned to them such claims of the State against the canal company as they were entitled to.

The whole matter is therefore finally concluded; and we find— 1st. That the contracts made by the board of public works with the counsel were authorized by law, and were judicious and advantageous to the State.

2d. That they have been executed by counsel with zeal, energy, ability and success; and

3d. That the final adjustment and settlement was strictly in accordance with the agreement and contracts made and entered into.

H. W. THOMAS,

Chairman senate committee.
T. G. POPHAM,

Chairman house committee.
ROBERT L. MONTAGUE.

Leave of absence was granted Messrs. Friend one day, Goodwyn two days, and Montague five days.

Mr. Riddlebarger offered the following resolution:

Resolved, That the special investigating committee, composed on the part of the house of Messrs. Riddlebarger, McMullan, Gilman and Bagwell, be permitted to sit during the sessions of the house. The house refused to refer the resolution to a committee.

The resolution was agreed to.

The following were presented and referred under rule 37:

By Mr. Scruggs: A bill authorizing the Richmond and Danville

railroad company to change and regulate the gauge of its road. Referred to committee on roads and internal navigation.

By Mr. Morrison: Petition of citizens of the county of Rockbridge, asking legislation for the protection of fish. Referred to committee on Chesapeake and its tributaries.

The morning hour having expired, special order

No. 276. House bill for the assessment, levy and collection of taxes,

came up.

On motion of Mr. Bagwell, the special order was postponed for twenty minutes.

The hour of twelve o'clock M. having arrived, special order—

No. 10. Senate bill entitled an act to provide for the lease of the penitentiary, came up.

On motion of Mr. Lovenstein, the special order was postponed until Wednesday next.

No. 343. House bill to amend and re-enact section 1 of chapter 14 of the Code of 1873, in relation to the time of meeting of the general assembly, was,

On motion of Mr. Bagwell, taken up out of its order on the calendar. The bill was read a second time and amended.

The bill was ordered to be engrossed to be read a third time-yeas 60; nays 22.

Ón motion of Mr. Holbrook, the vote was recorded as follows:

YEAS-Messrs. Allen, Armentrout, Armstrong, Bagwell, Blair, Brady, Branch, Brown, J. A. Carter, Jack Carter, Cecil, Matt Clark, Cockerille, Coghill, Crank, Dooley, Fitzpatrick, Gardner, P. Gibson, Gilliam, Gilman, Graves, Haden, Harrison, Hoenniger, John T. Hoskins, Howard, Hudgin, Hunter, James, Jett, Rufus S. Jones, J. Horace Lacy, Lamkin, Lewis, Lovell, Loving, Massey, May, McMullan, Montague, Morris, Morrison, Neeley, Pendleton, Popham, Richmond, Scruggs, Sellers, Shumate, Spratt, Stuart, Syphax, Taylor, Turner, Wallace, Whittaker, Williams, Winn, and Mr. Speaker-60.

NAYS-Messrs. Anderson, Beaton, Bohannon, Brooks, Campbell, A. J. Clark, Franklin, Fulkerson, Griffith, Hamilton, Holbrook, William Hoskins, Lightner, Longley, Lovenstein, Moss, W. A. Nash, Ould, Rogers, Strother, Withers, and Young-22.

Special order

No. 276. House bill for the assessment, levy and collection of taxes, again came up.

Mr. Morris moved a reconsideration of the vote by which the substitute offered by Mr. Stuart (as amended) for the 147th section was agreed to.

(See substitute offered by Mr. Stuart, and amendments thereto by Mr. Dooley, in Journal of Friday, April 3, 1874.)

The motion by Mr. Morris to reconsider was agreed to-yeas 42; nays 36.

On motion of Mr. Popham, the vote was recorded as follows:

YEAS-Messrs. Armstrong, Bagwell, Beaton, Blair, Bohannon, Brooks, Jack Carter, Cecil, Matt Clark, Cockerille, Crank, Fulkerson, P. Gibson, Graves, Grayson, Haden, Hamilton, Harris, Holbrook, William Hoskins, John T. Hoskins, Howard, James, Lamkin, Lightner, Lovell, Lovenstein, Lybrook, May, McMullan, Morris, W. A. Nash, Popham, Riddlebarger, Scruggs, Sellers, Spratt, Turner, Whittaker, Williams, Withers, and Young-42.

NAYS-Messrs. Allen, Anderson, Armentrout, Branch, Brown, Campbell, J. A. Carter, A. J. Clark, Coghill, Franklin, Gardner, Harrison, Hoenniger, Hudgin, Hunter, Jett, R. S. Jones, Lewis, Longley, Loving, Magruder, Massey, Morrison, Neeley, O'Neal, Ould, Pendleton, Richmond, Rogers, Round, Shumate, Strother, Stuart, Syphax, Taylor, and Mr. Speaker-36.

The question recurring on agreeing to the substitute offered by Mr. Stuart (as amended) for the 147th section,

Mr. Beaton moved to amend the substitute (as amended) by striking out the following words:

"The manufacturer of alcoholic liquors by direct fermentation and distillation from pomice, or from cider, grapes or other fruits, when the quantity of brandy made shall not exceed forty gallons, he shall not be required to pay any tax.

"When the quantity exceeds forty gallons, and the distillery is run not more than three months, the distiller of brandy shall pay a specific license tax of ten dollars; but if run more than three months, the specific license tax shall be forty dollars. And each distiller of brandy shall pay the further tax of two cents on all brandy manufactured by him in excess of forty gallons. On payment of the above taxes, the distiller of brandy shall have similar privileges in regard to the sale of the brandy manufactured by him to those granted to distillers of whiskey."

Which was rejected-yeas 33; nays 44.

On motion of Mr. Howard, the vote was recorded as follows:

YEAS-Messrs. Beaton, Blair, Brooks, Jack Carter, Cecil, Matt Clark, Crank, Fulkerson, Gardner, Graves, Hamilton, Harris, Holbrook, William Hoskins, John T. Hoskins, Howard, James, R. S. Jones, Lamkin, Lightner, Lovell, May, McMullan, Morris, W. A. Nash, Popham, Riddlebarger, Scruggs, Spratt, Turner, Whittaker, Withers, and Young-33.

NAYS-Messrs. Allen, Anderson, Armentrout, Armstrong, Branch, Brown, Campbell, J. A. Carter, Cockerille, Coghill, Dooley, Fitzpatrick, Friend, P. Gibson, Haden, Harrison, Hoenniger, Hudgin, Hunter, J. Horace Lacy, Longley, Lovenstein, Loving, Lybrook, Magruder, Massey, Morrison, Neeley, O'Neal, Ould, Pendleton, Richmond, Rogers, Round, Sellers, Shumate. Strother, Stuart, Swann, Taylor, Wallace, Williams, Winn, and Mr. Speaker--44.

Mr. Holbrook moved a reconsideration of the vote by which the amendment offered by Mr. Dooley, to strike out in the substitute offered by Mr. Stuart, the words "two and a half," where it appears in the second place, and insert "two," which was agreed to.

The question recurring on agreeing to the amendment offered by Mr. Dooley,

Mr. Harrison moved to strike out "two and a half," and insert "one."

Mr. J. Armistead Carter moved to strike out "two and a half," and insert three, which was rejected.

Mr. A. J. Clark moved to strike out "two and a half," and insert one and a half," which was rejected.

The motion by Mr. Harrison, to strike out "two and a half," and insert "one," was agreed to-yeas 50; nays 34.

On motion of Mr. Howard, the vote was recorded as follows:

YEAS-Messrs. Allen, Anderson, Armentrout, Boykin, Branch, Brooks, Brown, Campbell, J. A. Carter, A. J. Clark, Cockerille, Coghill, Dooley, Fitzpatrick, Foster, Franklin, Friend, P. Gibson, Grayson, Haden, Harrison, Hoenniger, Hudgin, Hunter, Jett, J. H. Lacy, Lewis, Longley, Lovenstein, Loving, Lybrook, Massey, Morrison, Neeley, O'Neal, Ould, Pendleton, Richmond, Rogers, Sellers, Shumate, Strother, Stuart, Swann, Syphax, Taylor, Wallace, Williams, Winn, and Mr. Speaker-50.

NAYS-Messrs. Armstrong, Beaton, Blair, Jack Carter, Cecil, Matt Clark, Crank, Fulkerson, Graves, Hamilton, Harris, Holbrook, William Hoskins, J. T. Hoskins, Howard, James, R. S. Jones, Lamkin, Lightner, Lovell, Magruder, May, McMullan, Morris, J. L. Nash, W. A. Nash, Popham, Riddlebarger, Scruggs, Spratt, Turner, Whittaker, Withers, and Young-34.

Mr. Stuart moved to amend the substitute offered by him (as amended) for the 147th section, by striking out "five gallons," and inserting "one gallon," which was agreed to.

The substitute offered by Mr. Stuart (as amended) for the 147th section was agreed to.

The hour of 3 o'clock P. M. having arrived, the chair was vacated until 8 o'clock P. M.

EVENING SESSION.

The chair was resumed at 8 o'clock P. M.

Mr. Coghill moved to suspend the rules to take up house engrossed bills, which was rejected-yeas 76; nays 4-(not three-fifths of all the members elected to the house voting in the affirmative).

On motion of Mr. Fulkerson, the vote was recorded as follows:

YEAS-Messrs. Allen, Anderson, Armentrout, Armstrong, Beaton, Blair, Boykin, Branch, Brooks, Brown, Campbell, J. A. Carter, Jack Carter, Cecil, A. J. Clark, Cockerille, Coghill, Cox, Crank, Dooley, Fitzpatrick, Foster, Franklin, Friend, Fulkerson, Gardner, P. Gibson, T. S. Gibson, Graves, Grayson, Haden, Harrison, Hill, Holbrook, William Hoskins, John T. Hoskins, Howard, Hudgin, Hunter, James, Koiner, B. W. Lacy, J. Horace Lacy, Lamkin, Lewis, Lightner, Longley, Lovell, Loving, Lybrook, Magruder, Massey, McMullan, Morris, Morrison, W. A. Nash, O'Neal, Ould, Pendleton, Popham, Richmond, Rogers, Round, Scruggs, Sellers, Shumate, Spratt, Stuart, Taylor, Thomas, Turner, Williams, Winn, Withers, Young, and Mr. Speaker-76.

NAYS-Messrs. Bohannon, Matt Clark, R. S. Jones, and Swann-4.

The motion by Mr. Morris to reconsider the vote by which the house refused to engross house bill No. 253, to amend and re-enact the 13th and 59th sections of chapter 78 of the Code of 1873, in relation to public free schools, came up.

On motion of Mr. Harrison, the bill was laid on the table-yeas 46; nays 40.

On motion of Mr. Morris, the vote was recorded as follows:

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