New York proposes the following bill to resolve the issue in the Ohio Territory:
Northwest Reorganization & Settlement Act
WHEREAS the Northwest Territory presently suffers from disputes regarding the authority of existing States to extend their authority over Federally-mandated lands; and
WHEREAS the Northwest Territory presently suffers from disputes regarding the legal status of Slavery and Servitude, and from its extralegal presence in violation of the Northwest Ordinances enacted by this Congress; and
WHEREAS a resolution to the problems of the Northwest Territory is essential to the maintenance of peaceful and amicable relations between the States of this Union;
We, the Representatives of the several United States, in Congress assembled, do hereby resolve that:
1. The Northwest Territory shall be reorganized into several smaller Organized Territories, governed by local constituent assemblies and by an appointed and duly approved Governor, and subject to all Federal laws and regulations.
2. The Michigan, Indian, Illinois, Jefferson, Wisconsin, and Superior Territories shall be constituted as Organized Territories.
3. Persons currently held in bondage who shall enter into the aforementioned Territories shall remain unchanged in status.
4. The sale, purchase, or exchange of enslaved persons shall be forbidden in the aforementioned Territories.
5. Upon applying for Statehood, the population of each Territory shall select, by popular referendum, whether they desire that their State should permit or forbid Slavery and Servitude. In those States which choose freely to forbid Slavery, all enslaved persons remaining in residence within that State within one year of its achieving Statehood shall be emancipated and granted immediate freedman status.
6. That portion of the Northwest Territory not defined within the borders of the aforementioned Territories, and corresponding to the country bounded by the Ohio River and the borders of Pennsylvania and the Michigan and Indian Territories, shall be admitted to this Union as the State of Ohio, with its capital at New Albany. Slavery shall be prohibited in the State of Ohio, and all enslaved persons remaining in residence within the State within one year of its achieving Statehood shall be emancipated and granted freedman status.
7. No State shall be permitted to annex, occupy, or otherwise lay claim to Federal land falling within the defined boundaries of an Organized Territory.