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the work. I have caused the appearance of the defendant's to be entered in this case, and their answer to be filed; and I shall hope to get the injunction dissolved, and the case dismissed early the ensuing spring. The investigations I have been enabled to make, had not satisfied me that any right of either Mr. Warner or Mr. Ryan is, or would be at all interfered with by the State authorities, in making their proposed improvements above mentioned. The dredging, which was stayed by injunction, was entirely within the Canal limits, and in navigable water, and was clearly demanded to put in a suitable condition for navigation the lower entrance to the Canal. So important is the completion of these improvements to the commercial interests having occasion to use the Canal, and so plain are the rights of the public in the premises, that I have little doubt that I should have been able to get the injunction dissolved before the present time, had the suit been pending in a court where terms were held more frequently, and where they were more accessible.

Early in this year, the Pittsburgh and Boston Mining Company commenced an injunction suit in the Circuit Court for the County of Keweenaw, in Chancery, against Abraham Trewortha, the County of Keweenaw, the Township of Houghton, and Albert Wil ams, Attorney General. The object of the suit, was to avoid the payment of all township and county taxes, levied upon their property in 1863, upon the ground, as stated

, in the bill of complaint, that Act No. 205, of the Laws of 1861, of this State, in virtue of which, their charter, without their consent, was amended, and such taxes were imposed, is unconstitutional—the Legislature having no power to alter or amend the charter of the Company, without their permission. This Company was incorporated in pursuance of the provisions of Act No. 85, of the Laws of 1848, of this State. By the terms of the Act last named, the Company was to pay an annual tax of one per centum on the whole amount of capital actually paid n upon the capital stock of the Company, and also upon all sums borrowed; which tax was to be in lieu of all other taxes on the personal property, and of all State taxes on the real estate of the Company. Act No. 205, above mentioned, also imposed a tax of one per centum, upon the same basis, but only made it in lieu of all State taxes on the property of the Company, of all descriptions, thereby greatly increasing the amount of their taxable property, as also, as a consequence, the amount of taxes by them to be paid. The right to alter, amend or repeal the special Act of incorporation of this Company, being the above mentioned Act No. 85, is based upon its own express provisions for such purpose. Believing myself, as Attorney General, to improperly have been made a party defendant, I demurred to the bill of complaint, which demurrer was sustained. Upon application to the Court, leave was granted to the complainants to amend their bill, by making Hon. Emil Anneke, Auditor General, a party defendant, whose appearance I duly entered, and interposed a demurrer in his behalf. The above mentioned question thus coming before the Court, upon bill and demurrer, the Act of 1861, above named, after argument, was held unconstitutional, and the taxes of 1863, imposed in pursuance of its provisions, illegal, and their collection perpetually enjoined. It was my intention, in such an event, to have taken this case to the Supreme Court; but I very much regret, that a severe and protracted sickness of some two months duration, quite placed it beyond my power to do so. The question involved, being that of the power of the Legislature of the State to alter, amend or repeal the charter of the Company without their consent, and which, confessedly, is of great moment to all the parties to be affected by it; I therefore hope, that at no distant day, the decision of the Supreme Court will be had

upon it.

The case of Edmund H. Hazelton, et. al., for the benefit of the State, vs. the Flint & Pere Marquette Railway Company, was referred to in my last Annual Report. Contrary to my expectations, then entertained and expressed, no money has yet been paid upon the judgment. Unless authorized by your action to receive the bonds of the Company in satisfaction of the claim,

I shall feel it my duty to resort to other aids than mere executions issued out of courts at law, to enforce its liquidation. That the interests of the State might well be consulted in receiving such bonds in payment, I have no doubt.

The case of the Michigan Southern & Northern Indiana Railroad, vs. The State, pending in the Circuit Court for the county of Wayne, in Chancery, and mentioned in my last Annual Report, was brought to a final bearing, on the 8th day of February last. No decree has yet been made.

The case commenced in the Circuit Court for the county of Tuscola, in Chancery, by Martin Watrous and David G. Slafter, us. Emil Anneke, Auditor General, and Alson Greenfield, County Treasurer, also mentioned in my last Annual Report, is still pending. I demurred to the bill of complaint; but owing to the sickness of the Complainants' Solicitor, no argument was had at the last term of the court.

The case of the People, vs. The Phoenix Bauk, is still pending in the Court of Appeals of the State of New York, the crowded condition of the docket of that court not hitherto having admitted of its being reached in its order. It is still in the charge of Hon. J. M. Howard, as Attorney for the People; and it will, I have no doubt, be brought on for argument at the earliest possible day.

The three chancery suits, each commenced against the Auditor General and another, in 1861, being one in the county of Wayne, and two in the county of Bay, and that of the State vs. Dewey, Hazelton, et. al., mentioned in the Annual Reports of my predecessor, for 1861 and 1862, and referred to by me, in my Annual Report of last year, are still pending. I now, however, have but little doubt that all of them will be brought to a final hear. ing during the year 1865.

Six mutual insurance companies have been organized in the State during this year. Their charters have been examined and certified by me, as required by law. With able and honest man. agement, it is, I believe, reasonable to presume that they will

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not disappoint public hope in relation to them; but without such management, it were better by far that they had never been organized. Those interested in them should keep themselves fully advised as to their operations, and always extend their best and most timely counsels to aid them in fulfilling their important mission. That several of the companies now existing in the State, have failed to make and file, or publish the statements required of them by law, and that many of those filed, are deficient in almost every conceivable respect, are facts which may well give rise to fearful apprehensions, and nearly or quite destroy that confidence which correct and upright management can alone command. Faults of the character indicated are easily avoided, and a hint should be sufficient to prevent a rep. etition of them.

The official correspondence of the office during the year, has demanded much labor, hardly a day having passed when inquiries did not come in, and press upon me. Their importance, as well as the sources from whence they came, necessarily induced careful examinations and answers in all cases where, as I thought, I could give them without embarrassment at some future period.

Several Prosecuting Attorneys bave failed to make their Annual Reports as required by Sec. 396, of the Compiled Laws of 1857, of this State. I herewith transmit abstracts of all which I have received. All of which is respectfully submitted.

ALBERT WILLIAMS,

Attorney General.

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