HISTORICAL MEMOIR. XI 



made Commissioners of this Fund ; and in case any Railroad 

 Company failed to deposit with the Treasurer of the State a suffi- 

 cient sum to meet the interest upon any State bonds loaned to 

 them thirty days before the interest becomes due, the Auditor 

 is required to pay out of the fund to the Treasurer a sum suffi- 

 cient to pay the interest as it falls due, such sum to be re- 

 funded by the delinquent Railroad Company, under penalty of 

 receiving no more bonds and forfeiting their road to the State. 



The Legislature then, on the 10th December, 1855, enacted 

 that the State bonds might be issued to the Railroad Companies 

 in the proportion of two dollars of loan advanced for one ex- 

 pended by the stockholders, and thus granted the further sum 

 of two millions to the main trunk line of the Pacific Road, and 

 also transferred to said main line the one million before au- 

 thorized for the South-west branch. The Company was also 

 authorized to mortgage a million acres of their lands and 

 Southwest branch, and issue their own bonds thereon to the 

 extent of ten millions, to aid them to construct that branch, the 

 State agreeing to guaranty three millions of those Company 

 bonds, the proceeds to be expended on the first 114 miles of 

 the South-west branch, reaching from Franklin to a point be- 

 yond the Gasconade river ; but the Company were required to 

 expend $ 50,000, to be derived from other sources, for every 

 $100,000 of bonds to be guarantied. This act required the 

 first division of that branch to be completed within three years 

 from its date, under penalty of forfeiture of the road to the 

 State, its lands and franchises, by operation of law, subject only 

 to the mortgage above mentioned. That law also extended 

 the privileges of actual settlers on railroad lands, by granting 

 them rights of pre-emption at $2.50 per acre to the extent of 

 fifteen miles from the road. 



The act also created and established a Board of Public 

 Works, consisting of three persons, not stockholders, to be (after 

 the first appointed by the Governor) elected by the people for 

 four years, the first election in 1856, and further required each 

 Railroad Company to set aside and pay to the State Treasurer, 

 every year, on State bonds thereafter to be issued, one and 

 one quarter of one per cent. (1J) on each 80 year bond, and 

 two and one-half per cent. (2 J) on each 20 year bond, sold or 



