Daily Wabash Express, Volume 20, Terre Haute, Vigo County, 7 January 1871 — Page 2

[C0KT1SCED FROM n^t'SAOE-l iions Which resulted in the'passage of the Butler bill, SJ»ng

*how

that her creditors were willing to charge the c-nal and in land* and revenues with,

and

discharge the State from some per-

^Fbe h^rsi^iusicn to «.ch an adjustment to be found in our public records!*.] contained in the annual menage of Gov Whitcomb, delivered to the General As Lbiy of the State, Decernber 184o,

^Vh^comb, delivered to the General A, cembiy of the State, December 2, 184o, from which I quote the fQl!°wing extract nremi-in" iliac the person alluded to fh* extract is Mr. Butler. It reads as

^n^aid.ina quarter entitled to reject and confidence, at a meeting he.d at Terre Haute, in May last, thai, if the ere to pay her bondholders, bj

at State W S.ate tax and otherwise, a portion ol her public debt, it was thought

From this i'

In reply to a resolution of the joint committee infoiming Mr. Butler of the organization of the committee and it* readiness to receive any written proposi tion from him in relation to an arrange ment of the State debt, he communicated his first written proposition to the com mitlee, of the date of December 19, 1845, Oh the 25th ol December, the committee informed Mr. Butler, by resolution, of its inability to accede to the proposition so submitted by him.

On the 26th day of December, 1845, Mr. Butler made his second proposition, which was accepted, and incorporated into the act of January 19, 1846.

Although Mr. Butler did, in that proposition, use language upon which the holders of the Canal stocks now place so much stress, to the effect that he did not feel himself at liberty to make any proposals or consent to any arrangement which should embraee less than theeventual payment of the just claims ot the bondholders for the entire amount of the principal and interest of the bonds in their possession yet it is manifest that Mr. Butler, in using this language, considered that a payment of a part of the debt by taxation, and a charging of the residue exclusively on the lands and revenues of the Canal, would embrace the eventual payment of the whole, and thai he was willing to take the risk of the Canal's paying its part of the debt.— Conclusive evidence of this is found in the second paragraph of the proposition. The first paragraph of the proposition having provided for the payment of the interest of one-half of the debt from the revenues of the State, the second reads as follows, to-wit: "2. The remaining two and a half per cent, on the principal of the bonds, computing from first January, 1841, shall be chargeable against and paid out of th revenues of the Canal, and shall not be oth tnvise ehargcable against the State."

Mr, Butler adds in a subsequent sen tence: "As such reliance is pioposed to be placed on the Wabash and Erie Canal by the bondholders for the payment of flne-half of the back and .accruing inter est, it is proper to sa/'that its comple tion is deemed essential to the plan of liquidation contemplated," &c.

I now call your attention to the inter pretation placcd on the adjustment by Mr. Secrist in the report which he sub mined and in which he urged the adop tion of the bill, which subsequentl passed. The following language i* used in tlie report, viz: "This proposition is substantially to release the general revenues of the State and her public faith trom one-half of the entire funded debt, and make the same a charge against the Erie, Wabash and Ohio Canal in Indiana. In effect, it is the same as taking one-half of the public debt from the shoulders of our tax-pavers and placing it upon this canal—a work from which the State has not as yet realized any income whatever though it is to he hoped that under judicious management it may be made to yield a handsome revenue. In addition to this, the bond holders are willing to take the canal and its lands (not absolutely, but in trust, and lini-h the work through to the Ohio river, advancing one-third or more of the co.,-t of completion in cash and using the lands for the balance so far as pacticable, and taking their recourse for this ad vance, not against the State, but only against the lands and revenues of the canal thus advancing money to the canal on the security of the Congress grants lands without imposing any further debt upon the State, bnt on the contrary, in effect leaving our debt less by one-half than it now is."

The provisions of the bill accompanying this report show that Mr. Secrist did not misunderstand or misinterpret it. The bill shows in divers sections by affirmative as well as by negative expressions that the Canal was charged exclusively with the payment of one-half the interest ol the entire debt, and that the State and her plighted faith were discharged from the same.

By the 32d section of January 19, 1846t the State reserved the right to charge exclusively upou the revenues of the canal one half of the principal of the entire debt. This was to be done by calling in and requiring to be surrendered the stocks which might be issued under the iirst sectjon of the act, and giving to the holders in lieu of them new certificates for one-half of the principal thereof, to bear interest at and after the rate of five per cent, per annum, the principal and interest to be charged on the revenues of the State and, also, by giving to each such holder another certificate for the other half of the principal of such stock to bear a like interest of five per cent, and to be paid and redeemed, and. only paid and redeemed out of said canal lands, and the tolls and revenues of eaxd canal and from and after the time that the State shall call in said stock wsued under the first section of this act, and shall issue new certificates, as aforesaid, the Stye, its faith and trrenuex shall be only pledped and responsible for the payment of one-half of the frineipal and interest at five per centum per annum thereon and for the other half of said principal and interest the holders of said certificate1! shall look solely and exclusively to said canal lands and the tolls and revenue of said canal."

The said act of January 19, 1846, was submitted to a committee of European bondholders by Mr. Butler, and that committee, at a meeting held in London, ,y 3 ». 1846, formally resolved "'concur in the principles laid down in tlx» act of the Legislature parsed at Indtaiinpolia, on the 19th of January,for the adjustment

pnt

l'ia.1

.fr

l,'e

vrrv incepti' of these negotiations, and, f»Pil before their inception, the idea

thal

t'ie-N

would be prepared to take the profits of the canal tor the balance. Hie $ep%-. man who expressed this opinio^ is R0 in attendance as the representative of our foreign bondholders, and luts verbally advSd mc that he will, shortly prepare a communication offering a liberal ar rangement to be laid before the General Assembly."

wl"

peen

thaLa

ler months before he reached olis, hf.'l made the imm^iTs would minds of the people, ajjfJfflvu part of the of the State, that lake the p.-oStsjfm Dace her 10, 184o, debt. J^roressed a lengthy comttiu-

K#rorough the Governor to the' Assembly on the subject of the i's indebtedness, and the wish of the 'creditors for an early adjustment. This communication was referred to a joint committee of both Houses, of which Mr

Kec ist, of the House, was a member, and of which Mr. Lane, of the .Senate, was chairman.

Mr. Secrist, in the report submitted by him from the joint committee to the House of Representatives, said, that "'the general statements contained in Mr. Butter's above mentioned communication to the Governor, were not sufficiently definite for the committee to rest upon as a basis of any action."

nf the debt of that State (Indiana)by pay- Wabash and Erie

of one moiety of theprincipal and revenues, without a

from the State line:i^omni| Ohio to Evansville on the Oblo rijgTjfuap erty to be assigned to khriWOTfsifces, the State to be ft«ed from re-won^ on that portion ofiihe

4 leb|^an^

so to be secured." This resolution was communicated tc» Governor Whitcomb,' who, in his message, delivered December 2, 1846, sub mi tied it to the Legislature and construed it to mean that the State was to be freed from all responsibility on that portion ot d»ht and interest, which wm to be

The supplemental act of January 26, 1847, is chiefly the work of the London committee, and the very first section the exercise of the option reserved to he State by the thirty second section of he original act, declares that one half the principal of the debt shall be charged upon the treasury of fhe State other half upon the Cafial ancl revenues of the Canal^a^jjg glate the 32d section of tn^flyp certificates ihat iipon the sjjjjflaer, each for one bonds then Sllifpal, one chargeable on shall isstjfi^ft he State and the other its lands and revenues. following extract from the message

Governor Whitcomb, delivered to the General Assembly on the 11th day of January, 1848, not only shows the same construction of the arrangement, but, in a iew brief sentences, explains the difference between ihe original and supplemental bill The extract is in these words, viz.:

But while the original bill gave the State the option of aiterwards throwing one-half of the principal also upon the Canal for payment, by the supplementary bill (and consequently by the law as it now stands), that object is at once effected by one half of the surrendered debt, both principal and interest, resting exclusively upon the Canal for payment, the State being released from all further responsibility in relation to it. The great and leading principle, therefore, of the first bill, namely, the satisfying of one-half of the surrendered debt from the Canal remains unchanged, nor does the supplementary bill involve the State any further in debt. The main difference between the bills consists in the latter giving to the bondholders, who should finish the Canal, a priority in the payment of their claims and expenses of its construction out of the tolls and profits, over those who would not .join in its construction."

The character or the bonds surrendered and the stocks received in lion thereof, prove the same theory. The bnnds sur rehdered pledged the faith of the State for their payment, and mortgaged the public works to secure the performance of that pledge. The Canal stocks re eeived in lien of one half of the principal of these bonds so surrendered contain no promise on the part of the State to pay the amount named in the certificates of stock, no pledge of the faith of the Stale tor that purpose, no lien on any of the public works of the State, except the Canal, but the whole obligation is ex pressed in these words, "that the Wabash & Erie Canal, and all tolls, lands and effects appertaining thereto, from the State line to Evansville &c., are irrevocably pledged in virtue of said acts, &c., to A. B., Ac and his assigns, for the sum of $1,000," &c.

It is a well established principle of law, independently of statutory enactments, that where a mortgage contains no cove nant or promise to pay the mortgage money, and there is no such covenant or promise in any other paper, the niorlga gor, although he may redieem the mortgaged premises, is not personally bound and the mortgagee must look exclusvelv to the mortgaged property for satisfac tion.

The last reference I shall make in proof of the first proposition is to an opinion of the Supreme Conrt of the United States in the case mentioned in a former part of this communication, viz: The trustees of the Wabash and Erie Canal against Beers, 2nd Black 451

In that case the court in incidentally construing this, very Butier'Bill, speak ing of the surrender ander it by one of the parties to the suit of certain bonds of the State uses this language: "The holders of the latter bonds believed that with the $200,000 lien prior to theirs, they would improve their condition by taking the State for one-half the debt, and the canal stock certificates for the other,

The second proposition is, that the Slate has not, since the adjustment of 1847, by the incorporation of railroad companies, or by any other act of hers, according to any recognized rule of law, or any established principle of equity jurisprudence, created a liability on her part to pay any portion of the debt charged upon the canal. It is a principle of public law which this State has no disposition to gainsay or evade, that a sovereignty which cannot be sued is bound in the performance of her contracts to do, and omit every thing which individual persons, under similar circumstances, could be compelled by action at law or suit in equity to do, oi to refrain from doing. We insist, however, that the good laitb and honor of the State do not demand anything beyond the requirements of this rule and that Indiana, in the matter complained of, has done nothing which a natural person could have been compelled to omit, and has omitted nothing which such a person could have been compelled by judicial proceedings, under similar circumstances, to do.

The memorial of the holders of the canal stocks, bases their claim exclusively upon the assumption that Indiana has wrongfully and in violation of her covenants contained in the Butler Bill, authorized the construction of a system of railroads, which, coming in competition with the Wabash and Erie Canal, has so impaired its revenues as to destroy its value a* a security. That railroads have been built in this State by irtcorporited companies, organized or assuming to act under State laws passed since the transfer of the Canal to the Trustees, cannot be denied, and it must be admitted that oneof these roads does come in direct competition with the Canal, and has largely ctntributed to the reduction of its revenues. With this admission, however, we insist that there is no stipulation in the Butler Bill or elsewhere, restraining the Stale from developing her resources hy the con struction ot railroads either by direct Slate action, or by authorising their con siruction by incorporated companies. Covenants or stipulations must be con* strued in reference to the main scope and body of the instrument in which they ore contained, and cannot by wresting them from the context, be made to apply- to matters not contemplated by the parties, and which would not have been agreed to if they had been suggested prior lo the closing of the compact. The memorialists, to make out a breach of covenant cn the part of the State, rely upon the stipulations contained in the fourteenth section of the Supplemental Act of January 27, 1847, but omit the recitals which give significance to the language employed and to sustain their construction they enlarge the sco(e of the stipulations therein contained, in a manner that no lawyer woul 1 retend to do in construing a conn act between individi«ls .Covenants in restraint of any lawful business or trade are never implied, and when clearly expressed, are considered to be against public policy, and therefore strictconstined against him who seeks to enforce tke restraint. Here is an arrangrme made between the State and a portion of her creditors, not before the invention of railroads, but after their practical introduction into this State, wherer by, with the assent the creditors, oneha'f of the debt of the State is charged on tlie re- enues and treasury of the State, and th* other half exclusively upon Ihe

l^^^i'^kout^hc as?}*#.*

light to

ela^ftffttetlB'lhrtig.s sit or nruJKare to be extelmJed by congtruction^rmplication, poas to embrace. The a covenant to abdicate her sovereignty shows the cog and refrain, forever, or so Jong as the arrangement should continue,^ from building, or permitting.to be built. of these great instriuoenfa of roc civilization and progress, which

revenues.., Suppose' Mr. tions with,the part of one State phjfi*'"

The "Constitution of the State was amended 'in 1851 so'as to prohibit fhe incorporation Of ailro«d or other compsmies by local or special legislation, but allowing their organization under general laws to be pa.-sed lor that purpose.— By reason of this, ihe-General Assembly, in 1858, passed a general railroad law under which railroad companies might be organized. If there ever was any legislative authority for the building of the Wabash Valley Railroad, it was derived from this general law, lor it is:certaiii that ho special charter was ever given for that purpose. It either was or was not a part of the contract between the State and the holders of the canal stocks that the: State should neither build or authorize'the buildingofany railroad that might compete with the canal. If it was not a part of the contract that the State should'be thus restrained, then the claim made by this memorial ftills to the ground. It the. contract did restrain the State as contended for, then the question arises whether the general railroad law of 1852 authorized the building of the Wabash Valley

Railroad. -It must be admitted that said law is general in its terms, and contains no expre«s restriction on the subject'of lines oi railroads that might compete with the canal, and yet I- insist that the general railroad law could Hot, and did not,' authorize the building of any railroad the construction of which was interdicted bv a valid subsisting contract made by the'State. "If the State by the 'arrangement of 1847, contracted that no such m-_ provementas the Valley Railroad should be made, a subsequent authorization by the State of the makingof the road would be an attempt to license by State law the impairing of the obligation of a contract a thing which every State" is, by the express terihs of the Constiuiiion of the United States, inhibited from doing.

It is not to be presumed that the State intended to pass an unconstitutional act and if the general railroad law is susceptible of two constructions, the one constitutional and the other unconstitutional, the former intepretation must be adopted and the latter rejected. Upon the theory, then, that the State was by her contract restrained from authorizing a railroad to be built that would compete with the Wabash and Erie Canal, and thereby diminish its revenues, the general railroad law of 1852, although unrestricted in its terms must be construed to apply only to such lines of "road as it was competent for the State to authorize without impairing the obligation of aiiv contract Upon the assumption that the'btiilding of competing roads was prohibited by the con tract and upon the construction of tlie general railroad law of 1852, just suggested, it follows that the construction ot the Wabash Valley Railroad was nuauthorlzed by that act, and was therefore an illegal act which the Trustees of the'Canal— tWo of whom are selected by the^-holders of the Canal stocks—or the stockholders themselves-could have restrained by injunction. The Railroad, of the construction of-which complaint, is made, wad built, not by the State, but by persons acting or assuming to act as a Corporation under a pretended authority from the State, and these persons were amenable to civil process, and the Federal and State Courts were open lo the memorialists and could have afforded them a com

Suppose the Wabash Valley Railroad Company,' instead of constructing their road on the line which it now occupies^ had located and commenced constructing it on the towing path or in the bed of the Wabash and Erie Canal, cofild the Canal Trustees and the holders of the Canal Stocks have stood by and witnessed such an appropriation of the canal under the pretense-that it was authorized by tiiA State, and then make this tort of the Kailroad Company the basis of a claim against ihe State.

It the holders of the Canal Stocks had vested rights in the Canal, as they insist in their memorial, then theState did not and could not authorize their destruction, and, with the Courts open to them, it is marvelous that they stood by and witnessed this destruction without an eflbrt to prevent it. Such conduct is Only con^ sistent with the theorv that they themselves believed that t)ie acts now complained of were not a violation

recto cessarjiuloggectttieTatifl '(•tvrrvA PfT^

ne?otia-

ad made it a

wwsitiona that .the br autliorize tlie^

ral'roa,d ,vi:liln

'buildiwiid, to any extent, great or income in competition with the Waand EriejCaaal, is it not certain that '"proposition, so long as it "contained such a feature, would have been prompt ly rejected: The Construction contended for is monstrous. Indiana never expressly or by implication,''stipnliired to fctaiid in the waiv of her own development, or of the development bf the nation by prohibiting railroads from being built within her borders that'might come in competition with the Wasbash and -Erie Canal.

If, however, for the sake of the argument, we admit the construction contended for by the memorialists, still there is another complete and perfect'a-tawer 'to' theclaiiu made by them:' It is notoriousthat since the transfer of the Wabash and Erie Canal to the Trustees, the State has not made a single mile of railroad.— It is eqtfally true that no line of railroad'has beeh constructed within the State by any organized company which can, in any just or proper sen-e, be said to come in competition with said canal, except the Wabash Valley Road. This road does run parallel with and near the canal from Fort Wayne in Allen county, to Attica, in Fountain county, a distance of about one hundred and thirty miles. If it shall be said that the Evansvrlie and Crawfordsville Railroad, extending from Evansville to Terre Haute, is also a competitor of the canal, the reply is, that the canal from Terre Haute to Evansvillie was a failure from-the beginning, and never was in a condition to compe.e with a good wagon road between the two points above named. This reduces the grounds' of complaint to the failure of the state to prevent the construction of the Wabash Valley Railroad.

:of

SINKING FJ

report of.

to be as

the

State's covenants, but what the lawyers term damnum absque injuria, that is, a loss without an injury, a lossfor which nei-ther-the State nor any other person is responsible

My apology for the length of this presentation is that the press of New York and London have been used To give currency to the imputation that Indiana, ih refusing to charge the«e Canal Stocks upon her Treasury, is guilty of "repudiation, and it seemed proper thatthe public should be informed through so ne officii} channel, of the views enter.tuned by our people, together with the gronnds upon which they are based.

Before dismissing the subject, I earnestly recommend ihe passage of a joint resolution proposing an amendment to the Constitution so as to declare that no act of legislation shall ever take effect or become a law of this State wherebv said

When the condition of these claims was reported two years ago, ihctemh installment thereof, amounting to$125,721. 80, had not been passed upon by the Treasury Department. On the 8t.b day ol December, 1869,1 received a draft or warrant from the Treasury of the United States, payable to my order in ray offic ial capacity, for $41,412 15, allowed on this installment, which I,on the same day, paid into the State Treasury, and received a quietus for that amount. The items constituting theresidueol the installment were either disallowed or suspended for further explanation or proof.

In the latter pari of April 1870,1 sue ceeded in having the papers and proofs prepaied necessary for the presentation of an additional claim designated" as the Twelfth Installment, for moneys advanced for the purchase of horses in lStil, for the military service of the United States, and amounting as presented io $35,282 12.

As the papers and forms of proof of this installment had been prepared by Gen. W. II. H. Terrell during his service as Adjutant General of this State, and as he understood and could explain the items constituting the claim beiler than any other person, I sent all the papers to him at Washington, and requested him to present and prosecute the claim in the Treasury Department, assuring him that the State would pay him a reasonable compensation for his services. The claim was accordingly presented by Gen. Terrell, and On the 21st day of September 1870, I received a draft from the Treasury of the United States, for $23,255, payable to my order in my official capacity, and immediately paid the same into the State Treasury, and received quietus for the amount.

The items constituting the residue of this installment were either disallowed, or suspended for further, explanation and proof,

The 11th installment of our War Claims was for moneys expended by the State equipping and subsisting Sta troops belonging to the Indiana Legion, while in actual service upon the call of the Governor, during the rebellion. Under the Act of Congress of March 29, 1867, Hon. John Broadhcad, Hon. R. Flint, and.Col. W. R. Kinney, were apppointed Commissioners to ascertain the amount expended by this State in enrolling, equipping, subsis'ing, transporting and paying such Stae forces as were called into service in this State after the first day of Janriary, 18&2, to act in concert with the United States forces in suppressing the rebellion. Said Commissioners met at Indianapolis in March 18G9, and did not complete their labors till the latter part of September.or the beginning of October of the same year, at which time they made a Report awat ding to the State $481,178 24, for moneys expended for the purposes conteinplnted by said Act of Congress Of the amount thus awarded, the Treasury Department allowed the sum of $464,9£x 24,,.and,ufl.,.Junev .lS70, I received, from the .Treasurer of tiie United States a draft fot* fhat amd'int which was immediately applied through the Bo^rd of the State Debt-Si/iking Fund Commissioners, to the redemption of the outstanding foreign indebtedness of the State as stated in a former part of this communica ion.

Message delivered at the opening of the-

General Assembly two years a^o, amount in the aggregate to $529 690' 39, as follows, viz':

On 10th Installment ..... $41,412 15 On 11th' Installment 464,923 24 On 12ih Installment 23,255 00

Total $o29,690 39

.... in the Senate of the United States which, below in refusing the mandate could'not plete remedy, ty injunciion, for what they if it shall become the law, will provide be reversed. now say was an irreparable injury, done by authority of the State?

for the auditing of the claim. This claim is chiefly for interest paid by the State on her War Loan Bonds, issued for money borrowed to aid in the suppression of the rebellion. I append to this communication a tabular statement which, with the one appended-to the last Message .will, it is believed, give full information as to the collections made on these claims, the application of the money, and tlte present condition of snch as are still unadjusted- I feel Assured that, in the suspended and disallowed items of the different installments, there are very considerable sums that are justly due tp the State, the allowance of which might be obtained by furnishing such additional proofs and explanations as might be procured or made. It is, however, so difficult to procure an ejficent prosecution of such claims without promising a large compensation for the service, that I prefer that the General Assembly should act in the matter, rather than to assume the responsibility myself.

TAXATION 09 RAILROADS.

At the last Special-session, 1 called attention in a message, which will tte found at page 122 of theS^nate journal, and at page 174 of the House journal, to Bome very glaring defects in the present law for theassessment and taxation of railroads, through which great injustice is done to the State and/ to the ownera of other kinds of property subject to taxation.

I now respectfully call attenKon to that communication, and r«new the recommends ions made therein.

TAXATION OF BAKK STOCK. I repeat the recommendation made at the opening of the last General Assembly, that provision be made for" taxing the shares of stock in the National and other Banks, for municipal purposes, as other property is taxable.

The opinions then expressed as to the

"anal Mocks, or any part thereof, shall power and duty of thus legislating remain be recognized as a debt of the State or

unchanged. -5*

noy

iV« taxable

12.000 00

SoutUtyai* Prison- lo rspiir toe damages Hunotjy Due from the Mate to complete

6,802 30

Supreme Court ruom, ike. ."i I Total From which." dedttct amonnti in the'fund belonging to •*ner* of mortgaged property gold, the salts being in excess of amounts

her JUmi:s

$912,027 64

4,11410

Net balance of monoys and effects in the bands of the Auditor-™— §8°',912 04 1 recommend thai, the amount due to the fund, lor State siuedeemed,'be secured by a non negotiable bond from the. State to the School Fund that the other small sutns due I'tom the State be immediately refunded to lliei Sinking Fund by an appropriation for that purpose and that the moneys on hand, and ihe ancullected securities, as last as realized, be invested in the registered interest bearing bonds of the Uriited titates, so that, the Fund may be made productive, and the income thereof distributed for common school purposes.

The wisdom of making the Auditor, instead of the Treasurer of State, the treasurer "f this particular fund, is not very apparent, and I hope the fund-may be transferred to the Treasury, and its prompt investment secur.ed by proper enactments. ,,v WAK CLABfS" AOAlNST THE GOVERN

MENT.

Canal, i's lands and charged upon the Ireasury- 'Tto.v of taxes. bojji made effectual by lien should be tkwgilitticd to equalize alma&t exchtsive'iv used 'or ihat'purpoje, worti being said in way of redeeming said canal or IIHH ~T~ which wise, until suclf act of legislatioi •ained have been submitted to and ratll make railroads, the q^ajfied.e^tor^f Bigj th- sneciaf'election tobehekrfor that oiaoa®gio#e olk«s£io bnildfliem with- specialreleetltfn to hk* 1k*yt- poe qTI. «Sl,J[hSovJhlWiade6^ #State, the vdfc QMt

(of"EqualizationlothemadejhttteBoaggre

Meat the proceedinjnj&f pe as*tpfatn(jf, tMPRufHcal of 1869 ought have shown the gate amount of taxable properly of

uie oniAiug uu«* the State to he $671,220,955.00, or an increase of $79,240,981 00. If all this increase had been carried on the duplicates,.it ^sa!e to say that even then the rfignresi ifOuld dot represent one halt of' the real valuo of all the property that is -sp ituesble-underoar laws. The iawreqtiires property to. be .valued, -at its true cash value. This 'ht!gha|e^»l *ifpplief to the appraisement of real estate for taxation is construed to mean the sum that the property would command in gold at a forced sale, and by this construction the appraisement is reduced"to less than onehalf and in many instances to less than one third of ihe amount that the owner would be willing to take for the property, or than a prudent man desiring ^o purchase would give for it. Theie seems aUo in many cases to be a rivalry, not orily between individuals, but between the officers of different counties to depreciate the value ot their taxables on the duplicates. County official", take it for granted that the real estate in other counties will be appraised greatly below its true value ana, upon this assumption justify themselves in making a grossly in sufficient appraisement as an act of necessa rv self delense to prevent an excessive contribution tp the common burthen*.

9590,916 80

206,941 2

secured to the rund by undinartgaeea-v'----»—«»—•l~ rt-oin'Waie for^tocka redeemed with tho fund, for whicn no tmmfcaA—sfc—nisiwn iihn thin School Fund by ihe State Cue from the tate foradjwwce to

Nor does the evil stop here: The man whose taxables consist chiefly of personal property, justifies himself in returning to the assessor one-third part of the value thereof because he sees that his neighbor's acres and town lots are' valued by similar standard. The practical effect of this is to depreciate the wealth and importance of Indiana in comparison with other States, and the tendency is to keep immigration and capital from the Srates. Worse than all this, however, is the fact that such practices are inimical to public and private virtue, and give official sanction to fraud and falsehood.

I j*ecoramend that in imitation of the assessment laws of Michigan, an amendment shall be .passed declaring that the words "cash value," as applied to ihe appraisement of property for taxation shall mean the usual selling price at the placc where the property is at the time of assessment, not at a forced sale, but at private sale. I trust that you will be able to device some remedy to prevent the demoralizing practice of counties and individuals competing with each other in the valuation of their taxables at rates grossly disproportioned to their real value.

The action of the State Board in equalizing the appraisement of real estate has been disregarded in many if not all of the counties in which a per centum was directed to be added to the appraisement left by the District Board but, where a deduction was directed to be made, the County Auditors, as a general rule, have not been slow to execute the order in making out the Duplicates. By this failure comply with the action of the State Board, and by unauthorized deductions not directed by that Board, the total value of all the taxable property of the State, as it stands on the duplicates is deduced more than fifteen millions of dollars below what it would have been if the action of the State Board had been carried out, and no such unauthorized deductions had beer. made.

At tlc last spec,ial session, the attention of some of the members of each House was called to the .fact that, by the change in the boundaries of the Congressional Districts, the law as to the places of the meetings of the District Boards of Equalization in seven of the Congressional Districts had become impossible of execution, as the statute required each District. Board to meet within the District, arid a place designated and this designated place had,' by the change in the apportionment, been placed without the District to which it formerly belonged.

A bill passed theSenate to remedy the difficulty, but was not acted tipon in the House.. The Auditor of State, by Advice of the Attorney General, designated the places of meeting of the District Boards in the seven district^ in which the law had become impossible of exeeti'iion The Auditor of Marion county, in mak ing the duplicate of 1857, having failed to recognize the action of theState Board in directing an increased per centum to be added to'he appraised value of the real estate of that county, the Attorney General, on the relation of the Auditor of State, commenced a proceeding in the Marion Civil Court to.compel the Auditor of Marion county to comply with the order of the State Board of Equalization.

The question was presented on its mer its, two points being made in resisting the issuing of a mandate, viz: 1st. That the District Boards met at unauthorized places, and therefore were illegal bodies and could not appoint delegates to the Stale Board, and that the State Board having been composed Of

oi mis comruiinica ion. ,„u„™ ,u„„ Thesums received from the Gove-n- delegates, a majo ... ment since the Report contained in the

aPP°.inle('i

un ac

2d. That the session of the State Board was, by the statute, limited to ten days that its meetings were continued beyond the time limited, and that the order of equalization was made on the twelfth day after that on which the Board met and organized.

The Circ lit Court refused the mandate,

anc a

llboUi£h the case was prepared for

The 8th installment,amounting, as pre- the Supreme Court by a reservation of the I itS flTfl 41 1 .! a a mm a a 1 lina Vtaan

sented, to $606,979.41, cannot be heard or proper exceptions, no appeal has been adjusted by the Treasury Department taken— Attorney General Williamson until there is additional legislation au- having, as I am informed, come to tke thorizing it. There is a bill pending in conclusion that the judgment ol' the court

After examining the question with some care, my own opinion is that, the objeciions made to the District Boards— though purely technical—are yet good technical objections, and that the remedy for the evil is not by appeal, but by curative legislation. The necessity for such legislation is clear for, if the State Board was an illegal body, so also were the District Boards, and yet the action of the District Boards has been carried out by some of the Counlv Auditors who repudiate that of the State Board.

I have caused a tabular statement to be caremlly compiled from the Report of the Auditor of State for the year 1869, arranged bv counties in alphabetical order, showing in separate columns what the aggregate value of the real estate and improvements would have been in each county it the action of the State Board had been carried forward to the duplicates what it is as actually entered on the duplicates of 1869, with the increase or decrease occasioned by the failure to follow the ordeis of the Board.

By this statement it will be seen that in some counties, after deducting the per centum authorized by the State Board, lanre additional deductions have also been made.

I will cheerfully furnish copies of said tabular ,-tatement to the committees to which the subject may be given, ih charge, it being too extended to make it a part of this communication.

In vie«£ of what ..has been said, I re8pectfiillv"rCC(Jfnn^etrtl ihat the meetings, organization, and proceedings ot the district boards be" Ie£a1 itfcd that 'the proceedings of the Slate Board be thorougly revised by a joint committee representing all parts ofthe Slate, and, so far as these proceedings mar be found to be just and equitable, let them be affirmed and. so far as they are found to be otherwise, let the appraisements be so altered as to make them conform to a just standard and-when the equalization is com-

properwac I further

Jrcpert'jr of the

'tele* the year 1868, ant appeared on, duplicates jMjf, 'der the operal|bnj®PtnJ neiMipg|ai lament of real estate fl69gf

Iw' ieansvnrr moaij^tiosasdcoueo- pleted by the committee and approved by vided for, it would seem that the Tns'itu- BessfmeeSfeei *s the imparled iror) nptf"?

ents. I its capacity for th' end that provision be of both sexes, the appi aisemegjferof ^Mkor^dmissfnn of eat

esratHtr tlBplon shail.ji.ot |ifcc#ie'*'*fMf Irtlw'totiiili fclng *!i tiaRuntH| they are. PMbmittecHb, and' th fi^d and affirmed by the UenjMhl As* kbij»at llfefilfstt regular meetijfjf thertaftlfelhe' making of such appraisementsjn'nd providing also that, if any County Auditor shall fail to conform to such appraisement after it has thus been affirmed, he may be proceeded against by action on.his bond, or by a proceeding for a mauditie in the Court*cif Marion coun

Wnenever the interests of ihe State

ty ap-ft uyuciourily affected by the official negligence or official misconduct .of a cotuAyJiffiiuf itaslvedhnt? -oftaer shonld, in my judgment, be liable to an action in some court at the Capital of the State. The existence of such liability would prevent the delinquencies that are now so common.

Something should also be done to prevent the return of such large delinquent lists, Our delinquent list compares very unfavorably with those of other States, partly becanso men are returned as de linquent from whom the taxes cotild be made if the proper time was allowed, and the proper effort made to collect, and partly because delinquencies are carried on the duplicates lo^ig after the p09sibili ty of their collection has ceased.

Provision of some kind should be made for purging the duplicates of this worse than useless matter, the placing of which on the tax rolls adds considerably to the connty expenses, and gives a more unfa vorable opinion of the willingness and ability of our people to pay their taxes than the truth wonld justify

EDUCATION.

The report of the Superintendent of Public Instruction affords gratifying evidence of the progress of popular education throughout the State. The common schools are continually growing in public favor, and were never so efficient as they now are in training our children lor the high duties of American citizenship. I am sure they will continue to deserve and receive the fostering care of the General Assembly.

As the State school tax, as well as the income of the Common School Fund, is distributed among the several counties according to the number of children in each, it is highly important that the enumeration upon which this distribution is based should be free from the least suspicion of nniairness or inaccuracy. To this end the law should be so amended as to require not only the names of parents, guardians and heads ot families to appear in the list, as is now the case, but the names of the children belonging to each family (which is not now required) should also be given and after the County Examiner has reported the enumeration to the Superintendent of Public Instruction, the Original enumeration papers should be required to be filed in the office of the County Auditor, to be preserved, and to be dpen to public inspection.- Authority should also be given to the Superintendent- of Public Instruction to cause the enumerations to be revised, and, if found to be inaccurate, corrected before making the distribution and, also, to equalize in making subsequent distributions, within a reasonable lime, to be prescribed by statute, -any inequitable distributions which may have been made on an incor rect enumeration. Severepenaliiesshould also be provided ."or official malfeasance in making the enumerations.

My attention has been called to the fact that some Township Trustees, instead of keeping the school moneys in their hands separate from township funds, confuse the moneys and accounts, whereby school funds are applied to roads and oilier township purposes to the temporary injury or permanent loss to the schools.

Such practices should be prohibited under proper penalties by plain statutory enactments, tp be published as a part ot the school law, and placed in the hands of very. 'Jfownship Trustee: 0W8TATK UNIVEIiSITY, »,«} 1.

The State University has greatly en larged the sphere1 of its usefulness in consequence of the liberality of the last General Assembly, as well as the one preceding it. I commend the institution to a continuance of the favorable consideration ot- the General Assembly.

AGRICULTURAL- COLLEGE."' 'f'1* In pursuance of the act of May Oth, 1869, the College contemplated by the act of Congres of "July 2, 1862, was in 1869, located in Tippecanoe county on a tract of land containing one hundred acres donated for that purpose and situated on ha west side of the Wabash river, about one mile and a half from the city of Lafayette. Mr. Purdue gave his bond to the State for the payment of the donation of $150,000 offered by him, the •Atue biing payable in annual installments in pursuance of his original proposition. The Board of Trustees of the institution in accordance with the provisions of said act of May 6th, 1869, have assumed as their corporate style the name of "The Trustees of Purdue University." For the condition of the funds of the Institution and other information pertaining thereto, I respectfulfy refer you to the report of the Secretary.and Treasurer of the Institution herewith submitted.

By the act of May 5th, 1865,^ the Governor is made a member and President of the Board of Trustees. The land scrip having been disposed of and the money safely invested and the College being located, no sufficient reason, in my judgment, now exists for the continuance of the Governor as a member of the Board. I therefore recommend the passage of an amendment providing for the appointment of an additional Trustee and relieving the Governor from serving as a member

the Board.

NORM"AL SCHOOL.

I have received no report from the

tpubn of patients ,of applicants "_• about eq'tal. [bus enlarged, tal will then fond which ii fin it, but instead

jncityjpf .thp[|l eachojl a limft ot wPwisetoexj.

thereof provision should be made for the erection of another Institution at some other point in the State.

It may be a q-ic-oion whether this should be attempted before ranking some provision for the cate of, \he idiotic, and for the education of Idiotic children. My impression however, is, that the sufiieringsof theinsane sull unprovided for are more severe, and that their condition more urgently demands speedy relief than the other unfortunate class to whom allusion is above made. I invite your consideration to the necessities of bo:h these classes of unfortunates, in the hope that you will provide such relief at tho earlies* practicable period as ihe claims of humanity demand, and the ability of the State will justify.

It will be perceived by the report of the trustees and superintendent of the ho?pi tal that the appropriations made at the last session of the Geneaal Assembly are insufficient to defray the current expenses of the institution on the 31st day of March, 1871, which is the end of the fis cal year of the hospital. I recommend that this deficit be immediately supplied by an appropriation so that the officers of the institution may no! labor under the disadvantage of having to make their purchases on credit until the pa-sage of the Qenerat Appropriation Bill, at or near the close of the session.

I also ask tbat the amount' necessarv to pay for the.water works furnished for the institution, and now in successful operation, may be appropriated without delay.

I invite your favorable consideration to what is said by the trustees and su perintendent in theii reports as to the necessity of more liberal estimates for subsistence in making appropriations for the current expenses of the Institution.

DEAF AND DUMB ASYLCM. The institution for the education of the deaf and d.imb not only successfully continues to perform the beneficent work for "which it was established, but, through the liberality of the last General Assembly in providing for its enlargement, the sphere of its usefulness has been greatly increased and extended. The contemplated extension of the building having been completed, the capacity of the Institution is now believed to be sufficient for tbe accommodation of those entitled to its benefits for vesrs to come. After the new building was completed and ready for being titled up and furnished, the sum of $10,924 was drawn from the Treasury of the State on the application of the Trustees and Superintendent, and applied to fitting and iurnishing the enlargement under an express anthority given lor thai purpose in the organic law of the Institution. By reason of the enlargement,' the present school year commenced and continues with a larger number of pupils than was estimated for when the appropriation for current expenses was made two years ago, and consequently there will be a deficit of $7,000, which sum 1 hope will be appropriated without delay, so tbat the current expenses of the Institution to the end of its fiscal year, March 31, 1871, may be provided for, and the necessity and disadvantage of making purchases on credit may be avoided.

SOLDIERS' JIuME.

I commend the Soldiers' and Seamen's Home at Kniglustown, and especially ihe Orphans' Department thereof, to your especial consideration, with an'expression of the hope that it may receive a mote liberal support at your hands than hahiiherlo been aocorded. Thus far it seems io have been reluctantly admitted into the family of our benevolent institu-, lions, and it has: appered to be more difficult to get appiopt iat ions for its support than for any kindred institution.— For my own part, 1 know of no class of the. meritorious unfortunates who are entitled lo a fuller measure of the sympathy and care of a benevolent and patriotic people than, thesacred veterans and soldiers orphans now in the '"Home" at Knightstown. The amount heretofore allowed for the current expenses of the Ins itution h.us been insufficient, and this year again the Commissioners have been compelled to borrow S5,000 to enable them to meet the necessary current expenses. I believe that the affairs of the Institution lTave been managed with marked judgment and econamy, and trust that the provision for its support may be. as liberal in proportion to its necessities as that made for any of the other benevo lent institutions of the Stale. THE STATE BOARD OF AGKICCI.TURE AND

STATE GEOLOGIST.

It may well be doubted whether any act of legislation has been adopted by this Stj.te for many years, which will prove so potent in developing the latent resources of the S.ate, and in directing attention to our mineral wealth and manufacturing advantages as that of March 7, 1869, pror viding for the establishment of a Department of Geology and Natural Science in connection with the State Board of Agriculture. On the 22d day of March, 1869, I appointed Professor Edward T. Cox to the office of State Geologist, created by ihat act, and soon after he established himselfat Indianapolis and en.ered upon the duties of his office. The act teq ired him to makeasurvey, from lime to time, of a portion of the State in order to be able to complete a thorough geological survey of the State, as soon as consistent with his other duties, as defined by the act. With the small appropriation made, and the littjle assistance he was able to employ, it, was impracticable for the Geologist t^ extend his labors over a very large scope of country, unless he disre-

officers of the State Normal School, and garded that thoroughness which is essen therefore have no definite iniorniation concerning its progress, condition or wants. I believe it is doing a good work, and is a necessary and important part of our common school system. To extend its benefits to those Who ought to enjoy them, it would seem to be neces sarv that some plan should be devised whereby the cost of living to thoe who attend its sessions from other parts of the State should be diminished.

BENEVOLENT INSTITUTIONS. ^#•1 INSTITUTE FOR THE BLIND. The Indiana Institute for the Educa tion of the Blind, is, in the language of the Report of its Trustees, "enjoying a high degree of prosperity, and doing its work well and to the credit of the Slate To enable the Institution, however, to do all the work which ought to be done, it must be enlarged. There was a pressing necessity for such enlargement two years ago, but the officers of the Institution, in cpnseqnence of the appropriations re lired by the Hospital for the Insane and the Institution for the Deaf and Dumb, deferred urging an appropriation for that purpose until now. l?or the extension of the Institute building and for other improvements mentioned in the Report of tbe Superintendent, it is estimated that the sum of $65,000 will be required. I earnestly recommend that the sum above named may be appropriated for the extension and improvements re qaired.

HOSPITAL FOB THE nraAWE. I cordially commend to your attentive considerattoai ^heabie and instructive Report of the .Superintendent of the Hospital for the Insane. Thcapacity of the Institution has been largely increased, so that there is now room for 520 inmates. It Is susceptible of a comparatively small additional increa«e of capacity by enlarging the south wing. Apart from the fact it may be safely estimated that not more than one third of the in ane of the State who ought to reeeiTe the care and treatment of snch an lwlituiion are now pro-

tial to the attainment of valuable results. Heselected, asilie chieffieid of hisoperations, tbat portion of the State which previous partial surveys had designated as the region whose development would be of the greatest immediate practical valuelothe entire State, in attracting both labor and capital to and within our borders. I have received letters from highly prespectable gentlemen,of diflerent counties of the Northern, as'^ell as the "Southern portions of the State, complaining of the neglect which their respective localities had suffered at the hands of the Slate Geologist, hut I am saii«ficd that the course lie pursued was the wisest and best, considering the means at his command and the circumstances by which he was surrounded.

I recommendthat a reasonable addition be made to the slflary of the Geologist, and that'increased means be placed at the disposal of theSiate Board of Agriculture for the support of its Geological and Scientific Department, so that assistant geologists may, at the earliest practicable period, be put in the field to hasten the completion of a survey of the entire State, and to avoid any suspicion that mere local interests are sought to be promoted. The developments already made demonstrate that jn the Block Coal of this State our people possess a mine of weal!that is practicabfv inexhaustible. Coverings strip of territory avera^ine three miles in width, it exists in workable veins from the Ohio river to Warren county, a distance of one hundred and fifty miles. The fact thi.t this coal can be taken directly from ihe mine to the lurnace and used for smelting purposes witho.t coking, producing as goodr if not beuer iron than that made from ihe sa ue ore with charcoal, gives Indiana advantages for manufacturing purposes that can hardly be exaggerated.

If practical experience shall arnrm, as believe it will, the correctness or -he opinion so confidently ente-tained by Professor Cox that the iron m*d at furnaces in Clay county will mak? as^ good

our facilities for the production of stee!"-* rails must be of inu-Jcutable value.

COtfRTS.

I respectfully refer you to the Message delivered two years ago for my views in" relation to our judiciary, and wish to be understood as repeating ihe recommendations then made. Since then the Supreme Court has decided that the Criminal Co«-ts established in some of the more populous counties are not Circuit Courts," but that they have a legal existence as inferior Courts. This being so, their names should be changed, and the harmony of our Circuit Ct,urt svstem should be^restored by the proper amendatory erf** actments.

I fully concur in the opinion so generally expressed by the itidges and lawyers, that provision should be made for the addition oi a filth judge to the bench of ihe Supreme Court.

I herewith respectfully submit a copy of the memorial adopted at a meeting of the Bench and Bac, held at Indianapolis, on the 30th day of November last, on this subject, the same having been presented to me by the Committee having the matter in charge, with the request thai 1 wonld lay the same before you.

The statute passed at the last session requiring the salaries of the Judges and Prosecuting Attorneys of the Criminal Courts to be p»id out of the County Treasuries, is wrong in principle, and ought lobe repealed If these Courts are not necessary to the effectual and prompt prosecution of the pleas of the Stale, they ought to be aboli.-hed if ihey aie necessary, the salaries ol the Judges and Prosecutors ought to be paid out of the common treasury.

-1

DECEDENTS ESTATES.

Some additional legislation, is, in my judgment, necessary in relation to decedents estates, for the attainment of the following objects, viz 1st. To prevent small estate' from being absorbed by the costs and expenses of administration, by providing for their settlement through the instrumentality of a public administrator without charge to the estate, or by dispensing with' administration altogether. 2nd. Toenlargethe amount allowed to wid® »s out of the estates of their deceased husbands free from the claims of creditors. 3d. To make similar exemption in favor of the dccedani's infant children of tender years left unprovided for by his or.her death.

I a'so believe that provision might with propriety be made to dispense with administration in all cases where those interested in the estates shall give un* dotib ed security for the payment of the debts thereof within a reasonable time, to be prescribed by statute.

I make these suggestions without going in o. detail, leeling assured that if the objects named shall meet your approval, there will be no difficulty in giving the recommendations practical ef-

CRIMINAL LAW AND PRACTICE. I also refer to the views expressed two years ago on the subject of the amendment of our Criminal Code, and the re* lorma ion of the practice in criminal I'rosecutions. The views then expre-sed he-e subjects are still entertained. I e-p.ciillv suggest that the biutal crime 0 prizefighting has not yet been de*nounced as a felony by our law. y(

COUNTY REFORM :,

There is an unmistakable popular de* mand for reform in the administration of County affairs, and lor tbe rednction ot the fees ol County officers, especially in the wealthy and populous counties. Under the constitutional provision preventing local orspecial legislation ont hesttbci of lees and salaries, it is generally tinderstood that compensation for official services cannot be graduated acconiing -population. This may render difficult to devise a fee bill that will, in all cases, be just both to the public and to the office holder. But this difficulty need not, and should not, prevent an effort being made, and successfully made, to accomplish the result.

ANEW STATE HOUSE."

I recommend that provision be made lor the immediate acquisition of all the piopertv not now owned by the Stale, situated between Tennessee and Mississippi streets and between Market and Uliio btieetSj and for vacating Market street, so far as it forms the northern boundary of the State House Square, and for vacating the alley which bounds the arsenal lot on the north, to the end that the pioperty now onned by theState, and that so proposed to be acquired, may be used as a site for a new State House whenever it shall be deemed expedient to build one. Tbe building of anew State Capitol cannot long be deferred, and now is the proper time to secure the proper site without a large outlay for that purpose. The site proposed, would embrace about nine acres. i'*4i **.£

REFORMATORIES.

The reports of the House of Refuge and the l\eformatory for Women and Girlsj not having been received until af-. tor the preparation of this comm!.nica-| tion, I shall ask permission to present to you herealter in a special message, whatever I may deem it necessary to say concerifintt those institutions.

OUB DIVORCE LA WS„

The laws of this State regulating the' granting of divorces, and especially the lax manner in which they have been administered in some of our Courts, has given Indiana a notoriety that is by no means enviable. Some of tbe reproach that has been cast upon the State in this connection is doubtless undeserved but a candid review of oar laws and their praoiiral operation on this important subject will, it is believed, satisfy any impartial mind. that a reformation is im*»peratively demanded.

The catir-es for which divorces may be granted under the existing statutes are as lollowd, viz

First. Adultery. Second, luipotency.1 u- j' Tliitd Abandonment for one year. Fourth. Cruel treatment of one party by the other.

Fifth. Habitual drunkenness of either party. Sixth. The conviction, subsequent to the marriage, in any country of either party of an infamous crime.

Seventh. Any other cause for which the Court, shall deem it proper that a divorce should be gianted.

It is not ray purpose to urge any objection to either of the six specific causes 01 divorce above enumerated except to say that the phrase "cruel treatment," which constitutes the fourth cause has been so liberally construed in favor of applicants for divorces by some of our Courts as to render necessary, in my judgment, a return to the moi* positive langivage of the Statute of 1843, which required the i-atment to be "cruel and inhuman" The reat objection to our Statute U**ver, the discretionary^ clause alreHd»- q^- ted, allowing a Court' to grant a diu ^ny caqrb that the judge mav deem :ffic ent.

This clause whicii pretends to lay down a rule for the government of human affairs in the most important relation of life, is at war with ihe fundamental idea and elementary definition of law. Law is a prescribed ruJeof civil oonduct. This statute prescribes no riile, the observance of which shall save, or the yiolation^of which shall forfeit conjugal rights. Lnder this clause the question, what is or is not a sufficient cause for a divorce, instead of being determined by a general rule, is measured bv no rnleat all, and the standard or judgment, instead of being prescribed so that it may be known and read of all men, remains locked up in the mind of the Judge until he pronounces judgment between the^parties in. the cas« be-