Indianapolis Times, Volume 34, Number 185, Indianapolis, Marion County, 14 December 1921 — Page 6

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GOVERNOR TELLS LEGISLATORS ONLY ONE ISSUE IS UP (Continued From Page One.) for the property If a special cession of the Legislature should be called. He included in his message the letter of Colgate 4- Company making the offer. ASKS SESSION BE MADE BRIEF. In closing, the Governor made his appeal for a short session and told the Legislature tha it is called to do its part in “preparing the way for the final consummation of a business transaction." The message in full follows: “1 have invited you to meet in Joint session this morning to lay before you the facts underlying the necessity for calling a special session of the Legislature at ths time. During my experience as your Governor I have endeavored at all times to be frank with vou and with the people of Indiana, ana I therefore assume that you are familiar with the history of the reformatory removal question from the passage of the act up to the present time. For the purpose of refreshing your mind, however. I wish to briefly read you the facts in the case as they exist. “The State Prison, or what was known later as the State Reformatory, was established at Jeffersonville in the year of 1821, Just one hundred years ago. Additions and betterments were added from time to time in the endeavor to keep it up with the demands of a growing population. FIRE DAMAGES INSTITUTION. "In February, 1018, a most destructive

fire occurred, burning or damaging many of the buildings and destroying much of the usefulness of the institution as ; a reformatory. By that fire the trade j school building, the ice and coal storage : plant, chapel and library, workshops, of- | fleers' quarters, administration building, j general kitchen, the inmates'* and officers' dining room, and the interior of two cellhouses were practically destroyed. Since then the administration building and some of the other buildings have been cheaply and temporarily rebuilt or repaired. Anew dining room and kitchen for Inmates was built last year. At present the laundry, boiler shop, shoe shop, bathhouse and the parole and identification departments are housed in temporary wooden structures. “Immediately following this destructive conflagration the removal to some central location was suggested and met with generous popular approval. Vhe reasons advanced for such removal were sound and logical. The old prison or I reformatory was built at a time when j the thought uppermost in the minds of the people and tne courts was punishment by imprisonment of the criminal with no thought of attomated reformation. BUILDINGS LEFT ABE INADEQUATE. “The buildings remaining did not meet i with the*ideas and requirements of a modern reformatory ana the erection of new and additional buildings would make the whole proposition a patch-work affair, even after the expenditure of several hundred thousand dollars. “The records show that in the past five years over 75 per cent of the inmates committed to the reformatory came from the territory north of a line drawn east and west across the State including the cities of Richmond. Indianapolis and Terre Haute, -'he cost of. railroad transportation from the county seat towns and cities included in that area is over 100 Fer cent more to Jeffersonville than to ndianapolis. This is a matter of much importance when you consider that not only the car-fare of the prisoner is involved but also the round-trip fare of the officer accompanying the criminal. It Is regrettable that it is the practice In some counties to send a deputy with each convict regardless of how many are In the party. This is an expense to the county that Is in most cases unnecessary and unwarranted, but it should be considered in making an estimate of the savvlng that would follow by having the institution more centrally located to the territory contributing the majority of its population. PLAN SUGGESTFD BY GOODRICH. “Soon after the Are, Governor Goodrich appointed a commission consisting of Senator Winfield M'iler of Indianapolis. ex-State Senator Robert Bracken of Frankfort, George A. H. Shideler, general superintendent of the reformatory: Dr. Samuel E Smith, superintendent of the Eastern Hospital for Insane, and Amos W. Bu'ler, secretary of the board of State charities, to thoroughly Investigate the advisability of relocating the reformatory and report to him In time to lay the proposition before the seventyfirst General Assembly convening in January, 1919. This committee made a thorough investigation of the whole problem and on Dec. 27, 1918. submitted a report to the Governor recommending the removal of the reformatory and submitting a bill they had prepared providing for the accomplishment of that purpose. This bill was introduced and passed the House, but failed to pass the Senate, as i tt did not meet the approval of the people of southern Indiana at that time. It was also argued that the question should be delayed on-account of the high cost of building materials and labor and thus the matter of relocating and rebuilding was abandoned for the time being. The necessity, however, of determining npon some fixed policy concerning the future of the reformatory was regarded as pressing and vital by those who were acquainted with the purpose and the physical condition of the property. COMPANY SEEKS WESTERN LOCATION. “Early in the fall of 1920 the wellknown and well established firm of Colgate & Cos. of New York City were seeking a Western location for an extension of their increasing business. They desired a location which would give them a commanding position with reference to the Southern and Western trade and It appeared to them that the river cities of southern Indiana would meet their demands and offered a satisfactory location for their projected branch. Their attention was called to the possibilities of converting the old reformatory at Jeffersonville into a desirable property for their purpose, and at the same time locate themselves advantageously from the standpoint of a strategic place for the operation of their business. “Negotiations were opened up. A tentative price of $350,0U0 was talked about, exclusive of such fixed and removable equipment and machinery as could be utilised to advantage by the State in the construction of anew Institution. Asa basis for my Judgment of the value of the property I relied greatly upon the appraisement made by the highly reputable and responsible firm of McMeans & Tripp in June, 1918. After a careful and exhaustive survey they declared under oath that the estimated value of the property embodied In the Colgate & Cos. transaction was $270,342.95. After this appraisement had been made the Stare spent In additions and betterments the sum of $75,009.21 making a total of $345,352.16 an amount considerably below the price talked about as the sale price of the property. COLGATE CONCERN ONLY BIDDER. "Realiaing that we had at least one good, live, prospective purchaser, the property was duly advertised for sale according to law and the date for opening the bids was fixed for April 19, 1921. On the date set it was found that the offer of Colgate & Cos. in the sum of *551,101.01 was the only bid received and the property was therefore declared sold to them and a certified check for $103,830.31 accompanying their bid was accepted and turned over to the State treasurer the re i oca tion and erection of anew reformatory was drawn and was introduced and passed by the seventy-second General Assembly. The bill was signed by the Governor on March 2, 1921. and thus tecame a law. This bill was based upon the assumption that the State Farm and the reformatory could be united under one management and that the necessary buildings for the two Institutions would be erected upon adjoining sites without detracting from the highest degree of usefulness and efficiency of either. This would certainly look to an uninformed business man ss being a reasonable and economic proposition. JOINT PLAN ABANDONED. “After considerable investigation of the practicability and feasibility of the proposal, and acting upon the unanimous advice and opirion of a score of the most learned, experienced and successful men who have given their lives to the problems offered by the criminal class and who have had daily and practical observation and training In handling criminals of both types, the plan of locating the two Institutions together was abandoned by the removal commission w'tb the consent of the Governor. M was also found that on account ' a-il roonf”''rients of an institution .f :'_l- ;be utter

failure of that territory to furnish such requirements, tne penal farm site or any location adjoining same could not be thought of. “This mistake was due in rart to the unfortunate necessity under our constitution of inducing a newly elected executive into office after the assembly has convened before he has had any opportunity to acquaint himself with the great problems which immediately confront him and upon which he nfii'st promptly declare himself. COPY SENT TO EACH MEMBER. “The proceedings of the commission attempting to locate the reformatory under the act has been fully set forth in a printed report, a copy of which was mailed to each of you in order that you might be thoroughly informed as to every move made and every reason why the relocation was abandoned under the provisions of the law established. “The succw'iing steps leading up to the calling of this special session are well and tersely set out by the following letter written by Colgate A- Cos., following an interview I had with their representative in Washington, D. C., on Wednesday, Nov. 16, 1921: “ 'Colgate & Cos. desires to make a further proposition to the State of Indiana wifn reference to the property at Jeffersonville, onr offer for which was accepted by the State in June of this year. The matter stands as follows: “ ‘The act of the regular session of the Legislature of 1921. which authorized the sale, stipulated that the new institution was to be completed by Oct. SO. 1922. Our bid provided, accordingly, that we might withdraw If delivery of the property were not made by that date, and it was accepted with that condition. ACTION HELD UP BY RESTRICTION. “ ‘You subsequently advised us that the commission appointed under the act had found that its provisions so restricted their action that it was Impracticable for them to proceed. At that time, however, it was thought that certain amendments to the State constitution with ref- : erence to taxation, then about to be voted | upon, might be adopted, in which case there would of necessity have followed a | special session of the Legislature to ! carry out the changes in the tax laws i which the amendments contemplated. Tt was your intention in that event to propose to the Legislature amendments to the act of 1921, which would make it possible to proceed with the location and construction of the new institution and thus to carry out the sale of the old one to us. The defeat of these amendments, | however, seemed to leave no hope of carrying out the purchase unless we were willing *to await the 1923 session of the Legislature and that we could not possibly do. “ ‘While confronted with this situation and the apparent necessity of withdrawing out bid and giving up wholly the plan fpr a plant at Jeffersonville, we are advised that it has been suggested that in the public interest there be called a ! special session of the Legislature for the ! specific purpose of amending the act of 1921 •• ‘We could not ask that favorable consideration be given to this suggestion on

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any grounds relating solely to our interest in the matter. We believe we are in a position, howeTer, to add to the const derations of public Interest which might add to the expediency of calling a special session. " ‘ln the expectation of getting possession of the property at an early date, we have made extensive arrangements with that end in view. We have had plans for remodeling the buildings drawn; have obtained the publication of freight rates: and have laid new plans for all our Western business. On all of this we have spent large sums of monty. If we have to look for a site elsewhere, much of this expense will be duplicated and there will be added the very much greater cost incident to further delay in starting our plant, and to the general upset it would cause in our arrangemerts. This would all mean a heavy loss. In the hope that it may facilitate the calling of the special session and that this loss may be avoided, we beg to make this further proposition to the State of Indiana. OFFER TO FAY $50,000 BONUS. '• ‘lf the act of 1921 is 'mended by Feb. 1. 1922, in a manner that will enable the commission to proceed at once upon the location and construction of the new institution. we will add to the amount of our original offer the further sum of $50,000 payable when thp property Is delivered to us. We also propose that in the event we may be enabled to take over the property at Jeffersonville in whole by Sept. 15, 1923, that we will pay to the State of Indiana a further sum of $50,000, making In all for the transfer of the property described in our former proposal the total sum of $451,101.01, less the payment of $105,330.31 made last spring, leaving a balance due of $345,770.70, payable when delivery is made. “ 'Respectfully submitted, “ 'COLGATE & CO., “ 'By Gilbert Colgate, president.’ “ ‘ln my talk with the legal representative I made it plain to him that to my mind there was one of three ways open for them to follow. First, the State would cancel their agreement with them and return the bonus paid with interest and they would be at liberty*to seek anew location. Second, for them to wait until the matter could be taken up in the regular way at the next regular sessic i in 1923 when I would use all the power of my office to have the law amended so we could proceed to relocate and rebuild at the earliest possible moment. Third, if they considered it to their financial advantage to have earlier possession, than would be possible under such regular procedure as outlined in alternative number two, then under certain conditions a special session might be called at an early date. Tbe letter Just read was their answer. "There are two fundamental facts that you should keep always before you. One Is, if we do not act in this matter at this time we will lose the advantage of this sale and doubtless tbe State and community would lose the benefits that would accrue from having this great or-

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INDIANA DAILY TIMES, WEDNESDAY, DECEMBER 14,1921.

ganlzation locate within our borders. The other, that in order for this institution to function in the big helpful way toward the education and moral improvement in the young men who are committed to its care, the State will be compelled to develop the present property to its best efficiency,-thereby spending several hundred thousand dollars. The choice that is to be made is obvious, and : to my mind our duty is plain. | URGES PASSAGE ! OF MEASURE. “I am now anxious that the bill sub- ! mitted to you for your consideration be passed, in order that we may complete ! the deal and proceed to prepare the way | toward an early delivery of the property !to its purchasers. 1 consider it a most j fortunate circumstance that we were able to find a customer for a piece of property that ordinarily would attract few buyers and at the sam,e time acquire such a valuable Industrial asset for the State as we do when the corporation of Colgate & Cos. becomes established. The advantage to the State and more especially to the community most affected are Indeed great and will be constant and permanent. X am reliably informed that the location of Colgate & Cos. in Indiana will insure the location of other important industries in that locality. “I am therefore asking your favorable action on the impending bill as It is an important step in a business transaction in which tbe State’s best interests, good faith and honor are Involved. You are called here to do yo'ur part in preparing the way for the final consumation of a business transaction. I sincerely trust you have given this matter your careful consideration and are ready to act favorably and promptly upon lte disposition. “As the responsible head in whom the constitution r-poses the sole responsibility for calling the members of the Assembly together, I earnestly hope and respectfully ask that you will favor no other legislation at this time but will agree with me that all other matters, however seemingly important, should be delayed until the next regular session.’ FINANCE PARLEY TALK CONTINUES (Continued From Page One.) gress, which will put into the executive's hands the power to arrange settlement of the $11,000,000,000 which Europe owes the United States. Influential members of the Administration are convinced America cannot escape participation. They merely point to the jnsettled state of foreign Indebtedness and the fact that America’s foreign trade has shrunk 100 per cent since the war ended as twin proofs that America’s interests are too vital to permit staying out. According to the view* of European visitors, as expressed to members of

the Administration, the conference would deal generally with four pressing problems: German reparation*. Foreign indebtedness. Stabilization of exchange rates. Tariffs. The root of the whole situation is in the first two problems, according to Europe’s spokesmen. Once settle these two problems, get them on a stable basis so the governments concerned can figure on the future with some degree of certainty, they believe, and the rest of the world’s economic ills will be well ou the road to cure. In this direction it has been suggested informally here that payment of German reparaitons to all foreign powers te arbitrarily put off five years to afford to the governments concerned a breathing spell. The distinct coldness with which American officials have received suggestions looking to a cancellation of indebtedness effectually stopped hints of this character. Convinced It is useless to pi o,Rise cancellation, the Europeans are suggested the next best thing—postponement for five years and longtime credits after that. Some American officials are convinced there is a good deal of merit in the suggestion, and that some such arrangement will have to be made before the world can get back to a stable, economic basis.—Copyright, 1921, by International News Service. SAXON ARMS SEIZED. DRESDEN, Dec. 14. —Tbe authorities have confiscated here and in Gunnersdorf large stores of arms belonging to athletic clubs and student societies, which have secretly been working for a monarchist rebellion.

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