Proposals For Forming A Company, To Enable James Rumsey To Carry into Execution, on a Large Scale Extensive Plan, His Steam Boat And sundry other Machines herein after mentioned.

Whereas James Rumsey, of Berkley county, in the state of Virginia, has been several years employed, with unremitted attention and at a great expence, in bringing to perfection the following machines and engines, namely, one for propelling boats on the water, by power of steam, which has already been accomplished in experiments, on a boat of about six tons burthen; another machine constructed on similar principles, for raising water at a small expence, to be applied to the working mills of different kinds, as well as to various useful purposes in agriculture; and also others, by means of which, grist and saw-mills may be so improved in their construction, by a very cheap and simple mechanism, as to require the application of much less water than is necessary in the common mode: and whereas the expenditures that the said James Rumsey has necessarily incurred in the perfection of those important discoveries, and in endeavouring to bring the machines and engines which he has so invented to perfection, have rendered him incapable, without assistance, to carry his said plans fully into effect: Therefore, he, the said James Rumsey, hereby doth, by the advice of sundry gentlemen of reputation, propose to form a company on the following plan, to enable him to complete and carry into execution his aforesaid inventions; being anxious to evince the great utility, which he is confident, will refute to his country therefrom. For this purpose, he proposes.

1st. To reserve, subject to his own disposal, one moiety or half part of the interest, and property, in his said discoveries and machines.

2nd. That the other moity of the interest and property in the same, he divided into fifty equal shares, to be disposed of to such gentlemen as may choose to encourage so laudable and beneficial an undertaking.—The purchasers to pay at the time of subscribing, twenty Spanish milled dollars, for each share, into the hands of the said James Rumsey, or of the trustee hereafter to be appointed, who will be authorized by him to receive subscriptions.

3d. The said James Rumsey, hereby engages to convey to the said Trustees, for the use and benefit of the company, Lands, of considerable value, as a security for the faithful appropriation of the monies so to be subscribed; which monies shall be applied to the immediate purposes of perfecting the before mentioned machines, and obtaining grants from the legislatures of the several states, vesting in the said James Rumsey, his executors, administrators and assigns, an exclusive right to, and interest in the said discoveries and machines, for a certain term of years.

4th. The said James Rumsey further engages that, at the expiration of one year from the date thereof (at which time he expects to have his machines completed) he will convey to each subscriber, his executors, administrators, or assigns, the share or shares by them respectively subscribed for, on his or their paying the said James Rumsey the additional sum of forty Spanish milled dollars, on each share so subscribed, and that, should any subscriber, or his legal representative then wish to relinquish his share or shares, the money advanced by him for the same, shall be refunded to him. But should it so happen, that all or a great number of the subscribers, or their representatives should not be desirous of retaining their respective shares, and that the said James Rumsey should thereby, be disabled from refunding to them, out of the funds arising from the original subscriptions, the sum of twenty dollars advanced for each share; in that case he agrees that the lands, so as aforesaid, for the express purpose of reimbursing the monies, advanced by those persons so declining to retain their shares; the surplus to be refunded to the said James Rumsey or his representatives.

5th. That those persons who may think proper to pay the additional sum of forty dollars for each share, and thereby be invested with a complete proprietorship in the concern, shall form themselves into a company, which shall hold their meetings at such times and places as may be by them agreed upon, for the purpose of promoting the interest of the proprietors, and for directing the mode, in which the business of the company shall, from time to time be conducted. That at all such meetings of the company, each proprietor shall be entitled to one vote for every share he shall possess, to the number of five (inclusive) and one vote for every five additional shares. That the said James Rumsey, so long as he shall continue as proprietor of one moiety (equivalent to fifty shares) or of a lesser number, shall be entitled to a proportionable number of votes, with the other proprietors; and that every person who may purchase from the said James Rumsey a share or shares (each of which shall be one equal fiftieth part of his the said James Rumsey’s proprietorship, hereby reserved) shall have the same right of voting as other proprietors.

That, so soon as twenty shares shall be subscribed for, the subscribers shall meet, in order to appoint trustees, for the purposes before specified; and that when the company shall be completely organized, every person entitled to give a vote in person, shall also, in case of absence, have a right to vote by proxy.

In Witness of the premises, We the Subscribers, have hereunto set our Names, this first day of May 1788.