cast a great responsibility upon the state, and the requirements of the statute were then substantially recited as to the investment and payment of interest. The language of the opinion cannot be said to adjudge the point that the state was to guarantee the payment of the five per cent. interest, as the guaranty had reference to the principal sum, which was to be kept intact, while the interest on an investment was assumed to be at the rate of five per cent. and it was all to be paid to the University without any deduction.

But there was no question of this nature before the court in that case, and none such was decided.

The state could not obtain at par bonds of the character described in these acts, paying interest at the rate of five per cent. and we do not think, in view of the language, both of the act of Congress and of the statutes of the state, that the latter is liable at all events to ensure to the University five per cent. upon the amount of the trust fund, irrespective of the rate which it is enabled to receive by investing the fund in bonds of the character named in the legislation, both state and national, upon the subject.

We therefore modify the order of the General Term and direct the Comptroller to issue his warrant for the payment to the University of all the interest from the investment remaining in his hands up to the amount of the $25,000 appropriated in each year respectively. If the amount is not agreed upon the order can be settled on notice.

"All concur, except Finch, J., not sitting."

A copy:

H. E. SICKLES, Reporter,

Per C.

CORNELL CONTRACT OF 1866.

This agreement made this fourth day of August, eighteen hundred and sixty-six, between the people of the State of New York, through their Commissioners of the Land Office, acting under and by virtue of chapter 481, of the Laws of 1866, of the first part, and Ezra Cornell, of Ithaca, New York, of the second part witnesseth:

That the said party of the first part hereby agree to sell and assign and deliver to the party of the second part all of the agricultural land scrip now in the possession or ownership of the State of New York, consisting of five thousand and eighty-seven certificates, each representing one hundred and sixty acres, on the following terms and conditions:

Ist. That said party of the second part shall receive said scrip from time to time, as the same can be judiciously located, in parcels representing not less than twenty-five thousand acres, paying therefor into the Treasury of the State, on its assignment and delivery to him by the Comptroller, at the rate of thirty cents per acre in lawful money of the United States, or of the State of New York, or in other good and safe stocks or bonds, to be approved by the Comptroller, and drawing not less than five per cent. interest per annum, and at the same time depositing with the Comptroller stocks or bonds, to be approved by him, to an amount equal to an additional thirty cents per acre, as security for the fulfillment by the party of the second part, of the conditions of this agreement, so far as they relate to the execution of a mortgage to the State on the land to be entered and located with said scrip, on the fulfillment of which,

said stock or bonds so deposited as security shall be returned to said party of the second part.

2d. That whenever any parcel of scrip sold and delivered to the said party of the second part, under and by virtue of this agreement, shall have been located by him, or his agents, the said party of the second part hereby agrees that he will, without delay, furnish to the Commissioners of the Land Office of this State, or to some member thereof, to be designated by a resolution of the Board, a full and complete list and description of the land so located.

And the said Board of Commissioners shall, within at least sixty days thereafter, and from time to time subsequently, as may be found expedient, fix a minimum valuation by quarter sections at which the same may be sold by said party of the second part.

And said party of the second part further agrees that he will annually, and from time to time, whenever required by the Commissioners of the Land Of fice, render for their information to the Comptroller a full, just, and true account of all sales and leases made by him, said report to be made in such form and under such oath as the Comptroller shall direct, and will pay into the Treasury of the State the whole of the net profits arising therefrom, which shall be ascertained by deducting from the gross receipts on sales, the original cost of thirty cents per acre, the cost and expenses attending the location, management and sale of said lands, the taxes assessed and paid on the same by the party of the second part, and the interest at the rate of seven per cent. per annum on the several amounts actually expended and liabilities incurred for such purposes. But it is expressly agreed by the party of the second part that he will

not sell any portion of said lands at a price below the minimum valuation thereon, which may from time to time be fixed by the Commissioners of the Land Of fice, without first obtaining their consent to do so in writing.

3d. That the stipulations and conditions of this agreement shall apply to each and every parcel of scrip assigned and delivered to said party of the second part, under this agreement, and the Comptroller shall defer or suspend further assignments and deliveries of scrip whenever the party of the second part fails to perform such stipulations and conditions, in respect to any scrip sold and delivered to him under this agreement until they have been complied with.

Except, nevertheless, that stocks or bonds as security for the return and mortgage of lands located under scrip to the party of the second part, shall in no case be required when there shall remain in the hands of the Comptroller by virtue of this agreement, mortgaged lands not released, equal in quantity to the scrip which may be issued by the party of the second part and remain not located and mortgaged as provided by this agreement.

4th. That as often as and whenever the party of the second part shall furnish a description of any of the lands selected and located by him under and by virtue of said scrip, he shall immediately execute a mortgage thereon to the people of this State, to be approved by the Attorney-General, conditioned that the said party of the second part will fully keep and perform each and every of the terms and conditions he is required to do, keep and perform.

And this agreement is declared to be a continu

ing agreement, and a suit or suits at law, or in equity, may be from time to time instituted and maintained thereon, and upon any or all of said mortgages, for any violation of such terms and conditions, whenever such violation may occur.

Said mortgages shall be delivered to the Comptroller, or to the Commissioners of the Land Office. 5th. Whenever the party of the second part shall sell or dispose of any section of the lands acquired by him under this agreement, and pay into the treasury of the State the net profits resulting from such sale, after the deductions hereinbefore mentioned and provided for, the party of the first part shall execute and deliver to the party of the second part a full and sufficient release of the portion sold from the lien of the mortgage, so that a clear title can be vested in the purchaser or purchasers.

6th. That of the moneys arising from sales or leases made by the party of the second part, and paid into the State Treasury as herein provided, a proportion equal to thirty cents per acre shall be added to and form a part of the fund known and designated on the records of the Comptroller's Office as the "College Land Scrip Fund," and the remainder shall constitute a separate and distinct fund, which shall be the property of the "Cornell University," to be known. as the "Cornell Endowment Fund," the principal of which shall forever remain unimpaired, the income to be annually appropriated by the Legislature, and paid over from time to time to the Trustees of the Cornell University, to be by them devoted to the purposes of the institution.

7th.

That the said party of the second part further agrees to purchase the whole of the aforesaid scrip,