SEC. 3. It shall be the duty of the secretary of the territory to file and preserve the reports of the governor herein provided for. SEC. 4. If, at any time, upon the examination of the territorial treasury, it shall appear to the governor that the books of the territorial treasurer do not correspond with the amount of funds on hand, or that the said books do not show the actual condition of said office and the funds on hand; or if it shall appear to him that any funds of the territory have been embezzled or diverted from their proper channel, or in any way or manner expended or taken from the treasury without authority of law; or that there is or has been any culpable negligence by said treasurer in the keeping of said books, or the care or keeping of said public moneys, he is hereby empowered, and it is hereby made his duty, forthwith to take possession of the books, moneys, papers, and other property, of every kind and description, belonging to the territory, or which came to the treasurer's possession by virtue of his said office, and to remove the said treasurer and appoint another in his place, who shall give bonds to the approval of the said governor, and take the oath prescribed by law; which oath shall be taken before some justice of the supreme court, or, in the absence of the said justice, before a probate judge, which oath and bond shall be filed with, and recorded by, the secretary of the territory, and thereupon the governor shall turn over to such treasurer the books, moneys, papers, and other property, and take his receipt therefor; and the governor shall make report of his said doings to the succeeding legislative assembly, and the said treasurer shall hold his office until the close of the next legislative assembly. SEC. 5. If, at any time, upon the examination of the county treasuries herein provided for, it shall appear to the county commissioners that the books of the county treasurers do not correspond with the amount of funds on hand, or that the said books do not show the actual Appointment and qualification of another treasurer. County treas condition of said office and the funds on hand; or if it shall appear to them that any funds of the county have been embezzled or diverted from their proper channel, or in any way or manner expended or taken from the treasury without authority of law; or that there is or has been any culpable negligence by said treasurer in the keeping of said books, or the care or keeping of the said public moneys, they are hereby empowered, and it is hereby made their duty to forthwith take possession of the books, moneys, and papers and other property of every kind and description belonging to the county, or which came to the possession of said treasurer by virtue of his said office, and appoint another in his place, who shall give bonds to the approval of said county commissioners, and take the oath prescribed by law, which oath shall be taken before an officer authorized by law to administer oaths; which oath and bond shall be filed with the clerk of the board of county commissioners, and thereupon the commissioners shall turn over to such treasurer the books, moneys, papers, and other property and take his receipt therefor, and the said treasurer shall hold his office until his successor shall be elected and qualified. SEC. 6. That each county treasurer shall, at the expiration of each and every quarter, make a settlement with the board of county commissioners of their respecurer to make tive counties, and shall make a quarterly report of all moneys collected for county and territorial purposes, and shall forthwith transmit such report, together with the amount due the territory, to the territorial treasurer. quarterly settlement and report. Statement of each settle ment to be made by chairman of board. Same transmitted to auditor. SEC. 7. The chairman of the board of county commissioners shall make, or cause to be made by the clerk of the board, a certified statement of each and every quarterly, annual, or final settlement had with said county treasurer, showing the amount collected by said treasurer for territorial purposes; and before the board shall adjourn they shall cause said certified statement to be transmitted to the territorial auditor. SEC. 8. If any territorial or county treasurer shall re fuse to comply with the demand of the officer or officers hereby empowered to examine their books, moneys, and papers, for shall wilfully seek or endeavor for any period of time whatever to delay such delivery or examination, or shall refuse to comply with the demand of the governor herein provided for, or the demand of the county commissioners herein provided for, to deliver up any books, moneys, papers, or other property belonging to their respective offices, upon receiving notice of their removal, he shall be deemed guilty of a felony, and, being thereof convicted, shall be punished by imprisonment in the territorial prison for a period not less than six months nor exceeding five years. Penalty if treasurer hinder or delay examination or refuse to of his books deliver up books, mon eys, &c. Oath admin SEC. 9. That for the purpose of more fully making such examination, such commissioners shall cause said treasurer to make oath before some person authorized to administer oaths, that the money he represents to said istered to commissioners, belongs to the county, and shall also cause a similar oath to be administered to the person or managers of corporations with whom such moneys may be deposited. SEC. 10. This act shall take effect and be in force from and after its passage. Approved February 15th, 1877. treasurer. WARRANTS — COUNTY. AN ACT to repeal section 1 of an act entitled "An Act concerning county warrants, and for other purposes." Be it enacted by the Legislative Assembly of the Territory of Montana: SECTION 1. That section 1 of an act entitled "An Act concerning county warrants and for other purposes," approved January 11th, 1872, be and the same is hereby repealed. Approved February 9th, 1877. to sale of sur plus water. WATER RIGHTS. AN ACT to regulate the sale of water and encourage the pursuits of industry. Be it enacted by the Legislative Assembly of the Territory of Montana: SECTION 1. That any person or persons, company or corporation, having the right to use, sell, or dispose of water, and engaged in using, selling, or disposing of the same, who shall have a surplus of water not used, or sold, or any person or persons, corporation or company, having a surplus of water and the right to sell and disRegulation as pose of the same, shall, and they or it are hereby required, upon the payment or tender to the person or persons entitled thereto, an amount equal to the usual and customary rates per inch, to convey and deliver to the person or persons, company or corporation, such surplus of unsold water, or so much thereof for which said payment or tender shall have been made, and shall continue so to convey and deliver the same weekly so long as said surplus of unused or unsold water shall exist and said payment or tender made as aforesaid. Manner in which persons may avail them SEC. 2. That any person or persons, corporation or company, desiring to avail themselves of the provisions of this act, shall, at their own cost and expense, construct or dig the necessary flumes or ditches to receive and convey the surplus water so desired by it or them, and shall pay or tender to the person or persons, corporation or company having to the right to the use, sale, or disselves of the posal thereof, an amount equal to the necessary costs and expense of tapping any gulch, stream, reservoir, ditch, flume, or aqueduct, and putting in gates, gauges, or other proper and necessary appliances usual and customary in such cases, and until the same shall be so done the delivery of the said surplus water shall not be required as provided by section 1 of this act. provisions of this act. SEC. 3. That any person or persons, corporation or company, constructing the necessary ditches, aqueducts, or flumes, and making the payments or tenders herein SEC. 4. That nothing in this act shall be so construed SEC. 5. This act to take effect and be in force from and after its passage. Approved February 16th, 1877. Rights and privileges of persons complying with this act. Persons using this act not to sell same af waters under have right to ter being used. WOOLEN MANUFACTORIES. AN ACT to encourage the manufacture of woolen fabrics in the Be it enacted by the Legislative Assembly of the Territory Exemption SECTION 1. The first woolen factory that shall be erected and operated in the territory of Montana of proper construction and sufficient capacity for the production of from taxation flannels and blankets, shall be exempt from all taxation for the term of six years from the date of the completion this territory. of such factory; the said factory shall be deemed completed at the time of manufacturing the first fabric. of first woolen factory erected in |