field by the State as collateral to the mortgage or lien upon said rail road and its appurtenances," &c.

As will be seen by reference to the above act of 1842, the proviso to the third section required the completion of the road from Detroit to Pontiac by the company, and not by individuals, or by any other firm or company:-and that it was so completed by the company, can hardly require any other proof than their own appl cation to this office in 1843, and their own showing before the su preme court, as above set forth, and in which as appears from the andamus itself, they must also have contended that the bond applied for was a collateral security to the mortgage or lien of the State on the road.

Knowing of no other information in possession of this office, earing upon the inquiries made in the resolution of the Senate, Thare the honor to submit the above in reply thereto; and being so cailed upon in the resolution, I would state that I do not see how the with drawal of the bond referred to, should involve a total loss, t does any) of the indebtedness of the company to the State. Yours most respectfully,

JOHN J. ADAM
Auditor Fo

No. 21.

1848.

The Honorable, the Legislature of the State of Michigan: The memorial of Henry B. Lathrop to your honorable body made this 27th day of March, 1848, showeth,

That on or about the 13th day of March, 1845, your memorialist, at the solicitation of the agent and inspectors of the state prison and Albert Walcott, then of Jackson, became the possessor of a certain contract then existing between said agent and said Walcott, for the labor and services of from 20 to 50 convicts then or thereafter to be confined in said prison. That on or about that time your memorialist entered upon and was in receipt of the labor and services of fron 25 to 30 of said convicts, and certain other privileges and immunities guarantied to said Walcott, and by him assigned to your memorialist. That such labor and service, and such privileges were in his enjoynent under and by virtue of said contract and assignment. That your nemorialist, in consequence of the solicitation as aforesaid, paid to said Valcott, to the knowledge, at the time, of the agent of said prison, sum equal to from $1400 to $2000-and guarantied among other ings, to pay to said agent any and all sums of money then due to aid agent from said Walcott, for the services of said convicts, and rivileges as aforesaid, which said sum amounted at that time to from 1000 to $1500. That he made such payment to said Walcott and uarantied such payment to said agent, solely for said contract and rivileges thereby guarantied,

That at the time of such purchase and payment aforesaid the state prison agent had no security from said Walcott, on which to rely for payment, and that at that time said Walcott's pecuniary circumstances were such as to preclude all hope of ever collecting said amount by course of law, nor was it believed by said agent that the said sum would ever be realized from the best efforts of said Walcott unaided by a sale of his said contract. That in consequence of your memo rialist becoming the possessor of said contract as assignee of said

In Senate Doc. No. 17, being a communication from the Attorney General to the Senate, dated the 7th instant, I see it stated that it is said that the seven miles of the Detroit and Pontiac rail road from Birmingham to Pontiac, is individual property; and "that the right of way was acquired by individuals, and the road made by them," &c. And I have also understood that it had been, or might be alleged by the company, that the bond of two hundred thousand dollars and accompanying mortgages, were not collateral to the mortgage or lien of the state on the road, but that said mortgage or lien, under the language of act No. 20, 1833, was collateral to the aforesaid bond and mortgages.

Now, the company, by their own acts and showing, before this office and before the supreme court, are certainly precluded from setting up any such defence or allegation, whereby the mortgage of the road to the state might be so far impaired. It was only upon the condition that the "company" should complete and finish, put in order for running, and run daily, the entire line of said rail road, from the city of Detroit to the village of Pontiac, that they were entitled to demand and receive from this office, either the mortgages delivered up in 1843, or the bond now called for by the mandamus of the supreme court. And that such was the showing before the supreme court, and that the company, as well as the legislature of the State, have considered, and do now consider the before mentioned bond and mortgages as the collateral securities to the mortgage or lien upon the road, and its appurtenaces, I need only refer to their application for the mortgages, or bond and mortgages, from this office, in 1843, and quote an extract from the mandamus of the supreme court, served upon me, on the 22d instant, and now on file in the office. After describing the bond, and reciting certain provisions of the act of 1842, and the amendatory act of 1843, in regard to the cancelment and delivery of the collateral securities held by the state for the loan to the company, the court, in the above writ proceed to say—“And whereas, it has been made to appear to us, that the said Detroit and Pontiac Rail Road Company has fully complied with the proviso contained in said third section (of act No. 22, 1842) and said act amendatory to the same; and that the bond or obligation before set forth, is