bonds originally deposited with them. Of these, $262,000 were of the part-paid bonds, and $10,000 of those paid in full.

After the settlement of the U. S. Bank with Morrison, Sons &. Co., their agents in London, the balance of the Michigan bonds hypothecated by them with their creditors in Europe, amounting to $3,583,000, remained amongst the assets of the Bank until after the report of the directors, made to the stockholders in January, 1846. In their report of the previous year, which specified the above $3,583,000 of Michigan bonds and other State stocks still held by the Bank, it was stated that the creditors in Europe had pressed the sale of these stocks pledged with them, but that the directors had persuaded them to wait. In their report of January 1, 1846, the directors communicated to the stockholders, that they had acceded to a proposition for an equal partition of the several hypothecated State stocks amongst their creditors, in proportion to the amounts severally due to them from the Bank. This arrangement, it is understood, has been consummated during the past year. As the part-paid bonds of the State have therefore now become divided and scattered amongst the several creditors of the late U. S. Bank in Europe, or their assignees, it would seem proper, in the opinion of your committee, that any one or more holders should have the privilege of coming in and availing themselves. if they see fit, of the provisions of the act of March 8th, 1843, respecting said bonds, or rather of the modification thereof, which the committee propose in the accompanying bill, in order to make the amount of new bonds to be issued correspond with the rate established for said bonds in the acts passed last winter, providing for the sale of the Central and Southern Railroads, and at which rate a portion of them have been paid in.

The difference between the rate prescribed in said acts, and that at which new bonds would be issued under the aforesaid act of March, 1843, arises from a large deduction being made by the last Legislature, in the amount of damages claimed under the act and joint resolution of February 17, 1842, relative to the unadjusted portion of our five million loan debt. That act and joint resolution fixed the damages to be claimed from the Bank, and to be deducted from the amount received on the part-paid bonds, at 25 per cent.

on the unpaid instalments; and this was the amount required to be deducted, upon the surrender of the old bonds, and the issue of new ones, by the act of March 8th, 1843. But the last Legislature, in fixing the rate, at which those part-paid bonds should be received in payment of our public works, deducted only 3 per cent. on the unpaid portion of the $3,813,000 of bonds delivered to the U. S. Bank, and their quasi-branch, the Morris Canal and Banking Company. The amount of principal received on the above mentioned $3,813,000 of bonds, prior to the failure of the Bank, was $1,208,615 22, leaving unpaid a balance of $2,604,384 78, on which 3 per cent. would amount to $78,131 54. There was subsequently received from the sale of certain assets assigned to the State by the Morris Canal Company, the sum of $23,835 50, making the total principal received on account of the part-paid bonds, $1,232,450 72. This amount, less the above 3 per cent. for damages, being divided amongst the $3,813,000 part-paid bonds, gives $302 73, the amount of principal mentioned in the acts of last session, providing for the sale of the Railroads, then belonging to the State.

The amount of damages claimed under the act and resolution of 1842, above referred to, may now, and was then, no doubt, deemed excessive by some; but, suffering as the people of Michigan then were, from all the financial embarrassments and other evils arising from the failure of the United States Bank, will at least be deemed some apology, if any is necessary, for the rate of damages then demanded. If any damages at all are to be insisted on, the amount deducted by the acts of the last session, would seem to your committee to be the lowest that could well be proposed. It is the rate fixed by law for drafts on New York and Philadelphia-if protested for non-payment-and it has been allowed and paid by the State herself upon some drafts drawn on certain of the instalments due from the U. S. Bank, and which were returned unpaid. wher it is known that the Bank recovered from the General Government 15 per cent. damages, on certain drafts drawn on a banking house in Paris, being the per centage established by law and commercial usage in such cases, it cannot well be considered a hardship that that institution, or those who claim under her, should abide at

And

least the deduction of the legal rate of damages as established for common commercial paper.

For a statement of the views and claims, as presented by themselves, of a large portion of those, for and with whom the partpaid bonds of this State were pledged by the Bank, and for an able and conclusive refutation of some of their mis-statements and mistakes, your committee would beg leave to refer to Joint Document. No. 15, 1845; and for a somewhat detailed history of the transactions in regard to the sale and disposal of our five million loan bonds, your committee would also refer to House Document No. 15, 1843. The attention of the House is respectfully called to the above documents, as setting forth the facts, on which past legislation in regard to our part-paid bonds was based, as well as the grounds for the measure now proposed, aud in order that your committee may avoid again going over topics previously so fully discussed in the reports of former committees.

All of which is respectfully submitted, together with the accompanying bill, for the consideratien and action of the House.

JOHN J. ADAM,

Chairman Committee Ways and Means.

Report of the Committee on Elections.

The committee on elections, to whom was referred the petition of Samuel W. Hill, contesting the seat of Elisha G. Seymour, the sitting member from Chippewa, have had the subject matter of such reference under examination, and herewith report back the petition with an embodied statement of the facts, accompanied by so much of the evidence taken in the case as they consider material to the question or of interest to the people sought to be represented by the contestants in this case.

The respective conclusions of the minority and majority of the committee on important principles, in which they do not agree, are presented in as brief a manner as possible, in order to bring the whole case before the House for its decision.

In 1827 the county of Chippewa was set off and organized, extending west to the Mississippi river, and south to latitude 46 degrees, 30 minutes north, and embracing all Houghton county, and the north part of Schoolcraft, Marquettee, and Ontonagon, in addition to Chippewa, as it now is.

In 1827, the township of St. Marie was organized, embracing that part of the country to which the Indian title was extinguished, lying east of Iroquars point, and being the east end of the present

county.

This was the condition of that county when the State Constitution was adopted, making Chippewa an election district.

In 1843, Schoolcraft, Marquette and Ontonagon were set off, and in 1844, the township of Caruss was erected, embracing all Marquette as it then was.

In 1845, the law setting off the above counties was repealed, and the same counties re-organized, but erecting the north part of Marquette into a separate county called Houghton.

No township organization seems to have been authorized, or to have existed in fact, in Houghton county, at the time of the election.

At the last session of the legislature, the counties of Schoolcraft, Marquette, Houghton and Ontonagon, were erected into a judicial district, and the act provides "that the inhabitants thereof shall possess and enjoy all the rights and privileges, to which the inhabitants of other organized counties of this State are entitled," It also provides that said district shall elect "the several county officers" provided by law for other organized connties, who shall perform the same duties and receive the same compensation as in other counties. That in like manner a judge should be elected, who should have the “judicial powers" of the district. That these officers should be elected on the first Monday of August, 1846.

The committee are satisfied, by the evidence that the judicial and county organization of the district was completed by the election of county and judicial officers.

By the same act it is also provided that "for the purposes of representation in the state legislature, the counties embraced in the provisions of said act, are to be regarded as attached to the county of Chippewa, until otherwise provided by law."

Houghton county is entirely within the territory embraced in Chippewa, at the adoption of the Constitution.

In Chippewa county proper, the usual elections seems to have been held at which the sitting member, E. G. Seymour received sixty-two (62) votes.

Placidus Ord, thirty-eight (38) votes.

E. Johnson, six or seven (6) or (7) votes.

Samuel W. Hill, one (1) for Senator.

The people of Copper Harbor also assembled, as appears by the evidence at the place when the August election was held, on the first Tuesday of November, and at about ten o'clock in the morning, Mina Turrell was sworn by the county clerk as an inspector, and he then administered the usual oath to two other individuals, as inspectors, and to two clerks of election. Ballot boxes for Congress and Representative in the legislature were provided by the clerk, without locks, but surrounded by tape, which was sealed up. Pro