Page:The History of Oregon Bancroft 1888.djvu/689

 through embezzlement of the five-per-cent fund before mentioned.

When Governor Grover came into office he found the treasury containing sufficient funds, less some $6,000, to defray the expenses of the state's affairs for the next two years. The legislature at once made an appropriation to build the penitentiary in a permanent form, and appropriated money from the five-per-cent fund for the construction of a steamboat canal with locks, at the falls of the Willamette. A small amount was also devoted to the organization of the agricultural college, thereby securing the land grant belonging to it. The legislature of 1872 passed an act providing for the construction of a state capitol, and appropriated $100,000 to be set apart by the treasurer, to be designated as the state-house building fund; but for the purpose of providing funds for immediate use, the treasurer was authorized to transfer $50,000 from the soldiers'-bounty fund to the building fund, that the work might be begun without delay. The same legislature passed an act organizing and locating the state university at Eugene City, on condition that a site and building were furnished by the Union Uni-