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income from the University fund for its redemption. This has been deemed such a perversion of the income of the fund from its orignal design, that the Legislature for several years past has authorized the payment of the interest from the general fund. The principal is now about becoming due, and I respectfully recommend that it be paid from the treasury of the State, so that this noble institution, in the prosperity of which every citizen of Michigan feels a deep interest and pride, shall be entirely relieved from embarrassment."

The grounds on which the debt thus created is deemed a perversion of the University fund are as follows:

1. By the Constitution of the State (article 13, section 2,) the proceeds of all lands granted by the United States to the State for educational purposes are to remain a perpetual fund, the income of which is to be inviolably appropriated and annually applied to the specific object contemplated in the original grant.

But the original grant expressly enjoins that it shall be appropriated "for the support of a University, and for no other purpose whatsoever." Now this fund" for the support of a University" can no more be appropriated for the erection of students' dormitories and professors' houses than district school houses can be erected out of the primary school fund. As school districts, by the erection of school houses and otherwise, must make the necessary preparations for availing themselves of the school fund; so it may be deemed that it was incumbent upon the State to make similar preparations, whereby it might avail itself of the fund provided by the General Government for the support of a State University.

2. If the debt in question be paid by the University, it must either be taken from the perpetual fund, contrary to the constitution; or the University must close its doors, and dismiss its professors and students until the debt is paid from the annual income of the fund.

3. Of this debt, $35,935 dollars were expended on the so called branches. The institutions created under this name were calculated to be of great value, and their revival and proper development as Union Schools, or under whatever name, is a matter of great importance to our educational system. But they were not, and cannot be a part of the University proper. They were only institutions intermediate between the Primary School and the University, and were merely preparatory to the latter, and no more a part of the University than the

Primary Schools, which as the first indispensable guide of education are preparatory to the University also. The money expended on the branches, together with the interest on the same, from May 1838 to May 1853, when the interest was first remitted, is as follows:

Appropriated to the branches up to May, 1838,.... $35,935 00
Interest, (not compound,) at 7 per cent., for 15 years. 37,731 75
$73,666 75

In addition to the above, the attention of your Honorable bodies is called to the fact that the University has been charged at the rate of 7 per cent. on the debt, while the State itself has paid but 6 per cent. on the same. The difference shows as follows:

Interest on $100,000 at 7 per cent., from May 1838 to

May, 1853,

$105,000 00

Interest on the same at 6 per cent., for the same

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Total loss to the University fund, from branches and

overpaid interest alone,

$88,666 75

The University fund has also suffered loss from past Legislation, to which it will not be deemed impertinent to call the attention of your Honorable bodies.

By virtue of the appraisement or reduction act of 1842, 3,936 91 acres of University lands, which originally sold at $87,504 59, were reduced about 50 per cent. of the price contracted to be paid, and $34,651 17 were credited to the purchasers; or where money had been paid, it was refunded according to this rate. (See Superintendent's Report for 1843).

It apears that up to 1843, the aggregate amount contracted to be paid for the University lands, had been reduced by forfeitures and relief legislation, from $220,000 to $137,000-a reduction of $83,000. (See Public Instruction and School Law, p. 93).

Regents, to the Senate of 1846, in reply to a resolution asking the views of the Regents respecting the reduction of the price of the University lands, the wisdom and justice of past reduction is strongly called in question,a nd any further legislation of this character protested against. (Ibid, pp. 146-8. Also, Journal of Legislative proceedings). The loss to the University fund from this source shows as follows: Reduction in the sale of lands, up to 1843,Interest, (not compound,) from May 1843 to May






From the above statements, it appears unquestionably, that if the debt of $100,000 in question be remitted, the University will still have lost:

By reduction of price of lands,

Interest paid on $100,000,...

$158,530 00

105,000 00

$263,530 00

If the debt be not remitted, then we must add,.... $100,000 00

Total loss, -

$363,530 00

From all the foregoing exhibitions, it must be evident to your Honorable bodies that the remission of the debt of $100,000 is a simple act of justice. The State University thus far, instead of having imposed upon the State any expense, has actually suffered loss in various ways.

As an institution which forms the highest grade of the noble system of popular education adopted in our State, and which now in successful operation is gaining a high reputation both at home and abroad, the Regents beg to commend its interests to your enlightened and just appreciation.

In behalf of the Board of Regents,



President of the Board.


No. 7.

[ No. 7. ]

PETITION of the Detroit and Milwaukee Railway Company for a grant of lands.


Detroit, January 19, 1857.

To the Legislature of the State of Michigan:

The undersigned, in behalf of the Detroit and Milwaukee Railway Company, respectfully shows that heretofore with others, they applied to the Congress of the United States for the passage of an act granting to the State of Michigan a portion of the public lands to aid in the building of railways in this State, and that in accordance with such request the Congress of the United States did on the 3d of June last pass an act granting certain lands to this State for the purpose of aiding the building of certain railroads, and among others for a line "from Grand Haven & Pere Marquette to Flint and thence to Port Huron."

And your petitioners further show that over a part of said line, to wit, from Grand Haven to Owosso they have been engaged in building a railway and have already in operation twenty miles of said line from Owosso to St. Johns, that they have expended on the remainder of said line to Grand Haven, in the purchase of iron and other materials, and in grading and bridging, over one million of dollars, leaving an expenditure of only about one million, five hundred thousand dollars to complete the said Road from Detroit to Owosso and from thence to


SENATE Doc. No. 7.

Grand Haven, and fully equip the same. And your petitioners further show that there are over one hundred thousand acres of public land lying along the line of said railroad now in process of construction by your petitioners, which has been granted by the United States to this State to aid in completing said line, and that if said lands are placed at the disposal of your petitioners under the restrictions and limitations in said act of Congress, it would enable your petitioners to completely finish and put in operation the entire line of the said Road during the present year. And your petitioners further show that almost the entire of the capital stock of their Company was subscribed for and is now held by citizens of this State, and that the granting of said lands to your petitioners would therefore enure almost entirely to the benefit of the people of this State. Your petitioners would therefore respectfully ask of your Honorable body the passage of an act granting to them for the uses and purposes and on the conditions mentioned in said act of Congress, all the public lands contiguous to the line of this said Road between Grand Haven and Owosso. Your petitioners will ever pray, &c. By order of the Board,


President D. & M. Railway Co.

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