Chap. 279.—An ACT to secure Iron Ship-building Yards in, and Steam-
ship Communication between the State of Virginia and Europe.

Approved March 29, 1875.

1. Be it enacted by the general assembly of the state of
Virginia, That the corporate powers, privileges. rights and
obligations granted and imposed by the state of New Jersey,
under the act approved April second, cighteen hundred and
sixty-nine, incorporating the Inter national Steamship Com-
pany, be and they are hereby granted to the said company
in the state of Virginia, upon the condition that the said
company sball establish an iron ship-building yard upon the
shore of any navigable water of the state tributary to the
Atlantic ocean, and a line of ocean steamers between the
said waters and Europe; and the further power of establish-
ing western iron steamboat-building yards near the mouth of
the Kanawha river or other waters of the western states not
excluded by the laws of said states, for the creation of iron,
steam, and other boats; and said building yards shall be des-
ignated by such names as the said International steamship
company may adopt and publish at or before establishing
the same.

2. The shares in the said company representing property,
capital, or carnings made or to be mgde, may be issued in
such form and on such conditions as may be prescribed by
the by-laws, or determined upon by a vote of the board of
directors, to carry out the provisions of this act. Premium
and other bonds may be issued in like manner for said pur-
poses, and for the purchase or creation and use of any pro-
perty needful to the said enterprises; said bonds shall be se-
cured upon such property or income as shall clearly repre-
sent er make their valuc, and said bonds may be disposed of
in any state or county, in accordance with the laws or usage
thereof, bearing such rate of interest as therein may be legal,
and as may be agreed upon for the place of issue. The pay-
ment of said bonds and interest to accrue thereon shall be
provided for by a sinking fund, to be formed under the pro-
visions of the by-laws, from the annual earnings of the said
company ; and it shall be lawful for any municipality or cor-
oration to subscribe to said shares, or invest in the said
onds.

3. To provide against any irregularity in issue of said
bonds, and to create positively a sinking fund for the pay-
ment of interest and principal of such bonds as may be thus
legally issued, the state of Virginia shall, when required by
said company, act as its trustce in holding any mortgage or
mortgages upon its property, given as the security basis for
the issue of said bonds, as well as to enforce the condition
that five per centum upon all the work done in the said
yards, and carned by the steamers owned and used by said
company, shall be paid into the treasury of the state of Vir-
ginia, in trust, semi-annually, to form the said sinking fund
for the payment of the said bonds and the interest to accrue
thereon. And the treasurer of the state shall certify upon
each of the said bonds that such mortgage is held by the
state for the said purpose, and that the state will collect and
apply the money to the payment of the said interest as it
matures, and to the liquidation of the said bonds; and that
any such collection failing by neglect or inability of said
company to pay, the state will forthwith proceed, in due
legal course, to sell the property so mortgaged, and apply
the proceeds thereof to the payment of said bonds and all
accrued interest thereon.

4. The foregoing provisions of this act, so far as they ap.
ply to the issues of shares and bonds, and of trusteeship.
shall also be in force for and apply to the use and benefit of
the James River and Kanawha canal company, for the en.
largement of its canal, its maintenance, continuation to, and
connection with the Ohio river, so soon as the president and
board of directors of said company shall, by a vote, accept
of the privileges hereby granted. ,

5. This act shall be in force from and after its passage.