The first act making a donation in favor of internal improvements was approved on the 30th of April, 1802, and was entitled “An act to enable the people of the eastern division of the territory northwest of the river Ohio to form a constitution and State government, and for the admission of such State into the Union on an equal footing with the original States, and for other purposes.”
By the third proviso to the seventh section of that statute, “one-twentieth part of the net proceeds of the lands lying within the said State sold by Congress, from and after the thirtieth day of June next, after deducting all expenses incident to the same”, was granted and given to the said State (Ohio), and was to be applied to the laying out and making of public roads leading to the Ohio River, to the said State, and through the same, from the navigable waters emptying into the Atlantic. Such roads were to be laid out under the authority of Congress, with the consent of the several States through which they passed.
By an act approved March 3, 1803, the Secretary of the Treasury was directed to pay, to such persons as the legislature of the State of Ohio should designate, 3 per cent. of the net proceeds, as above, which sums were to be applied to laying out, opening, and making roads within said State.
These acts, I believe, are the first two touching public improvements through congressional aid. Of course there had previously been many donations of land in favor of various persons, but they were for services rendered the Government, or special preëmption privileges.
Legislation similar to the acts above referred to, was enacted until the year 1824, varying only in the extent of the proceeds granted.
By an act approved May 26, 1824, the State of Indiana was authorized to open and build a canal, and the right of way with 90 feet of land on each side thereof, was granted, subject to use and occupancy for the purposes specified. Nothing, however, was done under that act by the State; and on the 2d of March, 1827, it was superseded by an act of greater extent. On that day two acts were passed giving to Indiana and Illinois, respectively, certain lands in aid of the construction of canals, the first to connect the navigation of the Wabash River with the waters of Lake Erie, and the second to connect the waters of the Illinois River with those of Lake Michigan. A quantity of land, equal to one-half of five sections in width on each side of said canals, was granted, reserving to the United States each alternate section. The canals were to remain public highways for the use of the Government, free from toll or other charge whatever; were to be commenced in five years, and completed in twenty years, or the States were bound to pay to the United States “the amount of any lands previously sold”, and the titles of the purchasers under the States were to be valid.
As soon as the lines of the canals were fixed and the selections of land were made, the States had power to sell, and give fee simple title to the whole or any part of the lands.
These may, properly, be considered the initiatory concessions of lands in favor of internal improvements.
As stated, a grant for right of way had been made, but that right was solely one of use and occupancy. In this case the right of the States to sell became absolute upon the selection of the lands. To be sure, they were liable to repay the Government the price received by the sale of any of the lands, but the titles of their purchasers were to be in “fee”; and by such right of disposal they were enabled to realize at once on their grant, and thereby secure a speedier construction of the canals.
On the same day (March 2) there was also granted to Indiana a certain strip of land formerly held by the Pottawatamie Indians, or the proceeds from the sale thereof, to be applied in building a road from Lake Michigan, via Indianapolis, to some convenient point on the Ohio River.