(COPY.) Memorandum of an agreement made this seventeenth day of April, 1844, between the Board of State Auditors of the State of Michigan of the one part, and Henry B. Lathrop, for himself and such others of the sureties of William Ford and Son, as shall contribute their just proportion of the amount hereby agreed to be paid of the other part. Whereas, The authority given to the Board by a resolution of the ninth of April, A. D. 1842, relative to a settlement with William Ford and Son, is not deemed sufficient to authorize a surrender of the bond given by said Ford and others, for the purchase of certain state bonds dated June twenty-fifth, A. D. 1839, but believing it is for the interest of the state to compromise and settle said bond upon the payment of four thousand dollars by the sureties of said Ford; the said parties have agreed as follows, subject however, to the satisfaction and approval of the legislature: The said Henry B. Lathrop, one of the signers of said bond, doth hereby covenant and agree to pay to the state of Michigan the sum of four thousand dollars, and interest thereon at seven per cent per annum, from the first day of May next, payable as follows, viz : One thousand dollars and the interest thereon in one year from the first day of May next; one thousand dollars and the interest thereon in two years from the first day of May next; one thousand dollars and the interest thereon, in three years from the first day of May next; and one thousand dollars and the interest thereon, in four years from the first day of May next. To be paid in the acknowledged liabilities of the state,or such as may be acknowledged previous to the time when the repsective payments become due or in cash at the option of said Lathrop : Provided, that the Legislature of the State shall, at their next session, sanction and approve of the terms of this agreement. And 1, the said Lathrop, do further covenant, that I will, within thirty days after the passage of such act, secure the payment of said sum, of four thousand dollars and interest as aforesaid, by mortgage upon unencumbered improved real estate, to the satisfaction of the Board of State Auditors. And upon such approval by the Legislature, and security being given, as aforesaid, the State to assign said bond to the said Lathrop, for his own benefit, and the benefit of such of the sureties as aforesaid, as shall contribute their just proportion of the amount hereby agreed to be paid. If the Legislature shall not pass an act at their next session, ratifying the terms hereof, this agreement to be void and of no force or effect. R. P. ELDREDGE, E. FARNSWORTH, DETROIT, April 18, 1844. Board of State Auditors. H. B. LATHROP. N. B. It is understood that the State is to retain a certain draft of about $5,000, drawn by B. S. Redfield, cashier, and claimed by the obligors that it should be endorsed on said bond with the right to collect the same for the use of the state if it shall be collectable. No. 15. S 1845.00 • ན‛*!,, Report of Joint Committee on the subject of certain State Bonds. The select committee of the Senate, and the committee on the judiciary of the House, acting jointly under the resolutions of both branches of the Legislature therefor, and to whom were severally referred copies of the memorial of certain European bond holders, of bonds of the State of Michigan, commonly called "Five Million Loan Bonds," have had the same under consideration, and agree to the following report thereon: 4 The memorial of Dennison & Co., representing the holders of $900,000 of Michigan bonds, presents what is termed a statement of facts, upon which a claim is predicated for their payment in full. Morrison, Sons & Co. present a different statement of facts upon which they also institute a claim for payment in full, of $262,000 more of Michigan bonds. In both instances, the memorialists express their conviction, that the failure of the State hitherto to recognize its indebtedness upon the bonds in question, has arisen "from a misapprehension of the facts in the premises," and they further assume the position, that "those facts do not appear ever to have been fully presented either to the executive, the legislature, or the people of the State." The committee regard the position thus taken as somewhat extraordinary. To presume that an entire people could behold their favorite works of internal improvement suddenly and fatally arrested, by the failure of the parties contracting for our bonds;-that they could behold their prospects individually and collectively blighted, and meekly bow the neck to the superadded burthen of taxation for an indebtedness already incurred, the outlay of which was rendered worthless by that failure, without the keenest scrutiny, and the minutest investigation, pre-supposes either a stolid apathy, or a criminal indifference. The committee have neither the leisure, nor the inclination to review in extenso, the novel statements and doubtful positions permeating the entire documents submitted to them. They have still less the desire to deal in the apologetic language of "alledged misapprehension," or the more uncourteous terms of a "designed misrepresentation." They may be permitted, however, without a wide departure from the limits of a business report, to advert to a few out of the many inaccuracies embodied in the memorials. They allege, that by an act of a former legislature of Michigan," they are required to surrender up their bonds, &c., subject to the following condition: "then further deducting an arbitrary sum of 25 per cent. on the par value of the entire loan." The act and joint resolution here referred to, were passed February 17, 1842, and together provide that "the Auditor General and State Treasurer shall estimate the damages sustained by the State from the failure of the contracting party or parties with whom the said loan was negotiated, to pay the remaining unpaid instalments at 25 per cent. on the amount of said instalments. 5 Again: The memorialists state as a fact, that in October, 1839, the United States Bank of Pennsylvania, delivered to Messrs. Dennison & Co., in trust, to secure the loan of £800,000, Michigan 6 per cts., $900,000, Pennsylvania 5 per cts., $2,662,000, and Mississippi per cts. $880,000; and that in the conveyance of these stocks to them the said bank "gives the absolute power of disposing of them "by sale without reference to the bank, in case of default by the lat"ter, and in fact deprives that institution of all right or power of in"terference with them, except after repayment of the whole loan made on their security." The report made to the stockholders of the late U. S. Bank of Pennsylvania, at their last annual meeting affirms that the bank has not yet consented to a sale of any of the Michigan bonds hypothecated in Europe, except as to the $272,000 pledged with Morrison, Sons, & Co.-thus leaving $3,583,000, which the bank has not yet consented should be sold; and yet the cestui que trusts of Dennison & Co., allege the bank to have given them full control over the Michigan bonds pledged from the first!! Again: In alluding to the proclamation directed to be issued by the |