Terre-Haute Weekly Express, Terre Haute, Vigo County, 11 January 1871 — Page 1

MESSAGE

GOV.

CONRAD BAKER,

Delivered Jannary Gth, 1871.

Gentlemen of the Senate and House of Rtpretentative*: Since the last adjournment of the General Assembly the Divine Providence has con tinned to smile upon the State, and the year that has just closed, has been crowned with many blessings to her people.

STATE DEBT.

It affords me great pleasure in again welcoming the Kepre-entatives of ihe people to these Halls of Legislation, greet you at ihe outset with the assurance thai the linancial condition of the State, so far at least as the liquidation of our foreign indebtedness is concerned, is mo*t satisfactory. Practically all the foreign debt ot the State, except £178,OUO of the war loan bonds issued under ihe legislation ot 1861 ha* been redeemed. So early a consummation of such a result was not anticipated two years ago, even by the most sanguine. It was then believed that the colleciion and application of the revnue for the year 1870, would be necessary to complete the sedemption ot the 2A and 5 per cent, certificates ot Siate stock outstandings and consequently that a portion of tlie-e stocks would have to continue to bear interest until the summer or lall of 1871. The result achieved is due to the fact that in June last I received from the Treasury Department ol the United &<ate* on account of the 11th installment of Indiana war claims against the Lotted States, a draft or warrant on the Assistant Treasurer of the United States, at New York, payable to my oider in my official capacity, for the sum of four bundled and sixty-four ilio .rd nine bundled and twenty-three n"S and twenty-four cents (5461,922 2-lj whi"h lralt or warrant 1 immediate-!., indorsed so as to make it payable to liie Hoard of State debl Sinking Fund Commissioners ol the State of Indiana, upon the joint indorsement of Nathan Kimball, Trea-urer of State, and Thomas C. Slaughter, Agent of State. 1 transmitted the warrant thus indorsed bv the bands of the Ireasurer of S,ate to the Agent of State with the request that the proceeds of the draft should bp applied in redeeming first, such of the war loan bonds of the State as mis lit be presented, and, secondly, to the ledempiion of the 2J and five per cent, certificates of stock still outstanding. The proceeds of the draft were applied accordingly and hence the favorable condition of our foreign indebtetlness before mentioned.

The Auditor of State in his report shows that at the end of the lineal year, on the 31st day of October last, the torciirn indebtedne* of the State snnounted ,0b Si:!: ,240 12 And the domestic indebtedness to §3,734,247 82

Making a total of $4,167,487 94 Or the §433,240.12 of foreign indebtedness thus reported, the sum ot 5*25 L2I0 12 consisted of 5 and 2A per cent, certificates of State Stocks then uimn-iendered, as follows:

Five per cents i249,21J 99 Two and one half per cents.. §5,020 13

Total §254,240 12 On the lirst day of July, 1870, the Hoard of Commissioners of the State Debt Sinking Fund notified the holders of the 5 per cent, certificates of stock to present them at the Agency in New York lor payment on or before the 1st day of September, 1870, and that in default of such presentment the State would cease to pay interest thereon after said last mentioned date. The interest on the 2.1 per cents, had been stopped long before by the Board because of their non-presentment for payment under a like notice. As the money is, and has been, in the Treasuiy of the Agency at New York for there deinption of all these five jind two and one-half per cent, stocks still unsurrendered, and, as the State has done all that can be reasonably required to procure their surrender, they should be trented and considered as practically paid and to that end I recommend that the General Assembly ratify, if such ratification shall be thought necessary, the action of the Board of State Debt Sinking I'tind Commissioners in stopping the interest on tlie-e 5 and 2A per cent, certificate..

Since tke end ot the fiscal year, and up to January 5th, 1871, the following State Stocks have been redeemed

vl7-

Of the 5 per cent, certificates a 10U,.l 1 reducing the amount still unsurrendered to...!. ...$142,300 00 Oftbe2| pei cents. §1.288 13 reducing the amount still unsurrendered to "nn 7 ,• Of the war loan bonds §1,000 reducing the amount of these bonds ,SV'' -."'J.1, standing to the siru of si a,•JO 00

The principal of the war loan bonds will not be due for many years, and therefore the State can neither compel their sui render nor stop the interest thereon. Treating the 5 and 2J per cents, as practically paid for the reasons already as signed, it follows thai the entire rerogniz ed foreign debt of the State consists of War Loan Bonds to the amount 5*1 000 00

The" Domestic Debt of the State has been increased since the end of the (i^ciu year, Oc ober 31st, 1870, by the redenip tion of State indebtedness^ with monies belonging to the Sinking I'tind liom §3,734,2(17.82 to §8,791,001 to

It follows therefore that the debt ot the State, Foreign and Domestic on the dav of January, 1871, may be stated thus, viz:

FOKKUIN DKirr.

War Loan Bonds $178,000 00 DOMESTIC DEBT. Non negotiable bonds given to the School Fund $3,ool,oU) 1-J Sinking Fund monies applied to redemption of State debt for which no non-ne-gotiable bond has yet heen given to School Fund 1^7,7'00 08 Yincennes University Bonds (3,5S5 00 Total Domestic Debt 3, 92,(0l 15 Entire Debt Foreign and

Domestic on the 5th day of January, 1871 3,J/0,601 lo STATU ATJKNCY AND BOARD OK STATE

DEBT SINKING FUND COMMISSIONED. The Act approved December 2lst, 1865, commonly called the State Debt Bill, provides for the abolition of the office of Agent of State as soon as all the live and two and one half per cent, certificates of State Stock shall be redeemed and canceled.

The probability is that some of these certificates have been destroyed, and will, therefore, never be presented if so, the vgenoy under this legislation would be perpetual.

There is no longer any necessity for the State Agencv, or for the Board of State Debt Sinking Fund Commissioners and 1 therefore recommend that both be immediately dispen-ed with. There will be no injustice or impropriety in requiring the holders ol the few remaining certihi• es to receive their money at the 'lreas

"r'By reason of the application of the money received from the United States to the redemption of our foreign debt, as before stated, he ten per cent. S ate Debt Sinking Fund tax for 1870, will not be required when collected for the purpose for which it was levied. It will amount to over $600,000, and as the law now stands would go into the bands of the Board of Sute Debt Sinking Fund Commissioners. 1 revision should be made for constituting the proceeds of this tax a part of the t.enera Treasury of the State, to be appropriated as the General Assembly nia direct.

OLD INTERNAL IMPROVEMENT DONIW. In the foregoing statement of the indebtedness of the State, 1 have not included as a part thereof one hundred and ninety-one (191)

ol?

lndiana BonU

issued for Internal Improvement purpases prior to the year 1841, and upon which no interest has been paid by ihe State since said last men. ned year except as hereinafter ptated. All of thee 1.1 bonds are believed to be what are technic allv known as Internal Improvement Bonds—that is, bonds issued under the General Internal Improvement Act ot January 27th. 1836, except sixty-nine of them. These sixty-nine bonds last men tioned are Wabash and Erie Canal bondheld by ihe United States as an invest ment for certain Indian tribes, and the interest thereon was in November. If«b8, settled up to the first day of Julv of that vear by the government withholding and applying to that purpose so much of the audiied and all" ed war claState as was ne. (M ry to pay such nt.r est as is fully explained in ie*...a. message delivered at the opening of the last General Assembly and to which you are respectfully referred.

A partof the 191 bonds before alluded to are dolla--bonds and a part sterling 1

Kinds, but the precise number of each kind- I- Jtavet-been- unable to ascertain. The dollar bonds are for $1,000 cacb,

ft.

'a,''

TERMS $2.00 A YEAR}

Jo payable in New York City, and the teriing bonds are for two hundred "and twenty live pounds sterling each, payable in London. The bonds may be safely es timaied at $191,000, exclusive of interest and exchange. John Garrett, rsq of Baltimore, is represented to be the owner ol 41 of these 191 bonds ten oi the 41 being sterling bonds and the resi due being dollar bonds. Mr Garrett, soon after the adjournment of the last

Special Session of the General Assembly, as the holder of these 41 bonds, commenced an action in the Circuit Court of Carroll county, in this State, against the Board of Trustees of the Wabash and Erie Canal for the purpose of enforcing ..gainst said Canal and its revenues in he hands of said Board of Trustees, a lien on the Canal which he insists was created to secure the payment of said bonds by the provisions of the Generaj Internal Improvement Act beiore mentioned.

The suit is brought not only for the benefit of the plaintiff, but for the benefit ol all other persons standing in the same relation and holding similar bonds. Soon after 1 was informed of the pendency of this action, 1 procured a transcript ol the record thereof wi ha view to considering what steps, it any, were ntces-ary to be taken to protect the interests of the Slate in relation to matters connected wi.li the litigation.

Upon an examination .of the General Internvil Improvement Act ot January 27, 18 J6, and the case of the Trustees of the Waba-h and Eriet anal vs. Beers, decided by theSupietneCourt of the United States in 1862,and reported in 2d Black's l\eports, page 448, I became satisfied that the bonds issued by authoiity of said act were, by the 9th" section thereof, charged as a lien upon all the public works of the State, including (lie Wabash and Erie Canal, or at least that part of it which is ^iiuated below oi south of the mouth of ihe 1'ippecanoc river. In this view of the subject, it became my duty to the State lo prevent, if possible, the rendition of anv decree under which the Board of Trustees of the Wabash and Erie Canal could be divested ot the control of th" Canal or its revenues until after the meeting of the General Assembly, so that provision might be made to protect the irust and the interests ol the State in «ny and every possible contingency that might "arise. Accordingly I employed counsel, and attended in person,accompanied bv such counsel, and co operating with lion. D. Pratt, who acted as the Attorney of the Canal Trustees, a defect of particsdefendant was pleaded, in omit ling to join the present owners of the oilier public works embraced in the lien. This course rendered it necessary that the plaintiff should continue the cause to bring the additional parties before the court, and it was continued to the February term. 1871 of said court. The White Water Valley Canal, twenty-seven mile, of the south end of the Madison and Indianapolis Railroad, the New Albany and Vincennes Turnpike Road and that, part of the northern division of the Central Canal which is situated in Mai ion county, are all included in the hen, and all ol them, except the White Water Valley Canal having heen aliened by the State ewnveved the W'abash and Erie nnal to the Trustees under the Butler Bill, it fol lows that the' would have to be applied lo the satisfaction of the lien before the Wabash and Krie Canal could be subjected to the payment ol any portion of said lien.

The While Water Valley Canal was aliened before the W'abash and Erie Canal was transferred to the Trustees, and conse mientlv said last named canal would be liable'in equity to be subjected to the sat-i-faction of the common lien before the White Water Valley Canal could be reached. 1 suppose it is certain that the other works liable to be subjected to the satisfaction of the lien before the W'abash and Erie Canal could he reached would not satisfy the entire lien, and if they would that the S'ate having sold these other works for a valuable consideration, ought to protect them from the enforcement of this lien against them. If these bonds are a lien on the A\ abash and Et le Canal, as I believe tlieui to be, llie State cannot allord to permit the title of the Trustees to be divested or their possession, and control ol the canal and its re\enues

IO he interrupted by the judicial enforcement of said lien, lo prevent this, provision should be icade to pay out of the Treasury of the S ate such of said 191 bonds as mav be adjudged to be a lien on ihe Canal aiid its revenues whenever it mav become necessary to make such payment in order to prevent the canal or its revenues from being subjected to the sat

isfaction

ently of this lien altogether, I do not see how the S:a:c can honorably refuse to releem these few outstanding Internal Improvement Bonds. They were issued by ihe State and the faith of the Slate was pledged for their redemption, and this pledge cannot be disregarded or set aside without the consent ol both parties to the contract if the Stale has the ability toiedeem the pledge, ot which there can be no doubt. If the holders of the bonds had surrendered them under the Butler Bill as other holders sin rendered theirs and agreed to look exclusively to the revenues of the (Jutifl for one half of their debt, this would have been a new contract, and the State could not be justly comp aimed of for insisting on its execution. Bui ihe holdeis oi ilie bonds now under consideration have continuously refused to surrender them under the adjustment proposed by the Butler Bill, and ihe State cannot compel them to do so, nor can she reluse to pay tbetn without repudiating her plighied faith.

If the Stale should stand by and permit the Canal or its revenues to le wrested irom the bands of ilie Canal Trustees, io saiisfv a paramount lien created by the State itself prior to the conveyance of

the

Canal to said'Trustees, then, indeed might the holders of the Canal slocks, with some show of reason, claim that the

State

should redeem the many millions of dollars of Canal stocks which, under the existing arrangement, are exclusively charged upon the Canal, ond lor which ihe State is in no way bound. I hope that you will promptly adopt such measures as will forever prevent ilie possibility of I ho trust being disturbed or impaired bv the enforcement of this lien. It is both right and expedient that the State should thus pro ect the trust properly mid I also recommend that be State relieve ihe Board ot anal liustees from all the expenses ol liiigaiion to which hey have been or may be subjected in de ending the trust property from the atteuip1 made to subject it to the sausfaciion of-aid lien 1 herewith respectfully submit the pro-e.-.-ional opinion ot Messrs. Hendricks,

Hcud and Hendricks, the attorneys em..toved a* a oresat.I, to idling the questions invo ved in nd nnected with said lii gai ion, with ui- letter to them, con* taming the question to which raid opm ion is a response.

CANAL DEBT.

In this connection 1 desire again focal attention to the renewal ol ibe eflor which is about to be made by the holders of the Waba-h & Erie Canal stocks to induce ihe General Assembly to charge the payment thereof on the Treasury ot the State.

that if the power existed, it would be un— wise, impolitic and injurious to the best interests oi the people of the Sts.te to purchase said Canal. This resolution, although not very aptly worded, was intended to air icipate and condemn an expected efl'ort to have the Canal debt charged bv legislative action 011 the btate Treasury.

Karlv in the month ofMaich, 18o*, and a few dav« before the adjournment of the Genei al Assembly, the holders of the Canal stocks transmitted a memorial through the Governor io the

herself

formed, and

Wmmm

that response still remains on the statute books as the unrepealed expression of the Legislative will on the subject to which it relates. The holders of the Canal stocks or their agents, have recently caused a new edition of ibis same memorial to be

p"bl,«U0». .m.r.lv concur in t|»

The publicutions which accompany the memorial deny the concessions made by the memorial, and assert that by the adjustment the State never was released from her liability to pay that half of the former debt of the State which was charged upon the canal. 1 propose to r.oiice both of these theories, and in doing so 1 shall tor convenience sake sub mil what I have to say in support of the two following propositions, viz: 1st. That by the terms of the acts of miliary 19, 181G, and January 27, 1847, commonly called the "Butler Bill," and :he nature of the negotiations which resulted in their adoption, and especially ihe amendments suggested by the principal bond-holders to the first act, and adopted in the second, the character of he bonds surrendeied and the certificates of canal stock issued and received in lieu thereof and, by ihe cotempoianeous and subsequent construction put upon the ad juslment by both parlies thereto, it is clear that the caual stocks which the State is now asked to charge upon her Treasury were to be, and were, charged exclusively upon the W'abash and Erie anal, its lands and revenues, and that the State was not to be,and was not, bound to pay any portion of these stocks, al though she reserved the right to redeem the canal al her option after the expiration of twenty years from the date ol its transfer to the Trustees, by paying the principal sum charged upon it to the holdeis of the certificates of the stock ibus charged. 2d. That the State has not, since the adjustment of 1847, by the incorporation of railroad companies, and authorizing them to construct railroads within the Stale, or by any other act of hers, according to any recognized rule ol law, or any established principle of equity jurisprudence, ceated a liability on her part to pay said canal stocks, ox any part thereof. Ill other wolds, had thesame transactions occurred between two natural^ persons over whose rights and liabilities the Courts ouId have exercised the fullest jurisdiction, the claims now urged against the State could not have been enforced as between tlic.-e natural persons by an action at law, or ,i suit in equity.

Before presenting any argument in sup port of

said

pective,

of the lien. Indeed, independ

Butler bill, noing to show ihat from the very inception of these negotiations, and, indeed, before their inception, the idea was held out to the people of the State, that her creditors were willing to charge the canal and its lands and revenues with, and discharge ihe State from some portion of the debt.

The first allusion to such an adjustment lo be lound in our public records is contained in the annual message of Gov. Whiteomb, delivered io the General As scinblv of the State, December 2, 1S45, from which 1

quote

Under the date of December 10, l84o, Mr. Butler addressed a lengthy communication through ihe Governor lo the General As«embly on the subject of the State's indebtedness, ami the wish of the creditors tor an early adjustment. rb's communication was teterred to a joint committee of both Houses, of which Mr Sec- ist, of the House, was a member, and

In 1857. in anticipation of an attempt readiness to receive any written ptoposi which it was rumored would then be tion from him in relation loan arrange

.,1'ject. the Geneial joint resolution a,'|'ioeo Februar.1857, declaring ihat the Legi-iature

ioo«, oecia«i««

,l,e

no power under the Constitution to pur- inloimed Mr. Butler, bv resolution, ot it.-

chtise the Waba-h & Ktie Canal, and inability lo accede to the proposition so A

B.I

.J A a In ...

eventual payment of ihe whole, and that 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

new edition of tins* *ame rcenjonai io oe ine un«i painjjinpu printed in pamphlet form, copies of having provided for the payment of the wnich, with other publications having the interest of one half of the debt from 'he same object in view have been transmit- revenues of the State, tne second reads as ted by mail to all the members of the follows, to-wit: present General Assembly, as I am in "2. The remaining two and a half

to the Executive officers of per ccnt. on the principal of the bonds, the State including myself. computing from first January, 1841, shall

ptiuiivativu" vw—— «j sought io be attained but, not only dfra gree but contradict each other as to the basis on which the rights of the memorialists and the liabilities of the Slate are predicated.

The memorial in several places, either in termB or by the clearest implication,concedes that by the adjustment of 1847, onehalt ol ihe former debt of the State ceased to be a State debt, and became a canal debt, cbaigeable exclusively upon the Waba-h and Erie Canal, its lands and revenues but insists that, after the making of the arrangement, and by the violation thereof, the State revived her own liability bv authorizing the building of railroads which citric-d freight and passengers that would have been carried, in the absence of such railroads, by the canal, thereby impairing the revenues of the canal to such an extent as to_ render it practically worthless as a security.

other

first proposition, it mav

well to premise that.prior to the adjustment of the Slate Debt under the Butler Bill, Indiana was hopelessly embarrassed her indebtedness then being lai gely above and bevond her ability, present or pros

to pay. At the same time, the

.State owned the Wabash and Erie Canal, in an unfinished condition, with 800,000 acres of land lying within the State, which Congiess had donated to the State to enable Iter lo complete said canal. I tier ihe-se circumstances it was not a matter of choice, but of absolute necessity that, to enable the State to resume the pavment of interest on her indebtedness —which had been suspended in 1841 her Treasury must be lelieved in some way from thepa ment of some part of the debt that was then a charge upon it.

The creditors of the Siate, or a large number of them, conceding the existence of this state of affairs, deputed Charles Butler, Esq., ol New \otk, to visit the State Capitol during the session of the Legislature and confer with the Stale Government as lo the adjustment of the debt. This b. ings me to a consideration of the evidence contained in the negotiations which resulted in the passage of the

the following extract,

premising that ihe person alluded to in ihe extract is Mr. Butler. It reads as follows, viz.:

It was said, in a quarter entitled to respect and confidence, at a meeting heid at Terre Haute, in May last, that, if the State were to pay to her bondholders, by a State tax and otherwise, a portion of her public debt, it was thought that thev would be prepared to take ihe profits of ihe canal for the balance. The gentle man who expressed ibis opinion is now in attendance as the representative ef our foreign bondholders, and has verbally advised me that he will shortly prepare a communication otleiing a liberal arrangement to be laid before the General Assembly.1'

From this it will be seen that Mr. Butler, months before he reached Indianapolis, had made the impression on the minds of the people, and of the Governor of the State, thai ihe bondholders would take the pro is the Mini for a jmrt of the debt.

of which Mr. Lane, of the Senate, was in the payment of their chairman. claims and expenses of its construction .\,r. Secrist, in tr.e report submitted oy _r ._n. him tiom ihe join couimiuee to the House ot Representatives, said, ihat "'ihe general statements contained in Mr. Butler's above mentioned communication to the Governor, were not sufficiently definite lor the committee to rest upon as a basis of any action." resolution of the joint

In replv to a committee infomiing Mr. Butler oi the organization of the committee and its

which it ruiuoHfu womu V4.VM wv tii'u the amount named in (he ceruficaie* ol made for ibe accomplishment of the same ment of the Siate debt, lie communicated

h"~

I °H

As-semblv passed a his first written proposition io the com- lor that purpose, no lien on any of the 19, miuee. of the date of December U, lS4o. jjjjc ,vorks

'11 O' t'ecetu'ier. the commitiee

1. •, I I I* I) If)

submitted bv him. On ibe 26th day of December, 1^45 Mr. Butler made his second proposition,

I in.

which

holder ofibe Canal

DOSIIS or con-em to anv

KS,

(T*nera!

semblv, in which they attempted to1 show ,. that the State bv her own acts had len- their possession yet it is manifest that dered

liable for the payment ofiMr Butler, in using ibis language consaid stocks. This memorial had been, sidered that a pnymen' of of ihe

jStTSSiC" before wZ J, wd

C_ 4 1. a wm V*k An fr O

0J0i l4e

Mr. Butler adds in a subsequent sentence: "As such reliance is proposed to be placed on the Wabash and Erie Canal by the bondholders for the payment of

MVIIUMWI-V.. r-.

one-half of the back and accruing interest, it is proper to say that its completion is deemed essential to the plan of liquidation contemplated," &c.

I now call your attention to the interpretation placed on the adjustment by Mr. Secrist in the report which he submitted and in which he urged the adop tion of the bill, which subsequently passed. The following language i* used in the report, viz: "This proposition is substantially to release the yeneral revenues of the btate and her public faith Irom one-half of the entire funded debt, and make the same a charge against the Erie, Wabash and OhioCanal in Indiana. In effect, it is the same as

taking one-half

of the public debt from

the shoulders of our tax-payers and placing it upon this canal—a work from which the State has not as yet realized an* income whatever though it is to be hoped that under judicious management it may be made to yield a handsome revenue. In addition to this, the bondholders are willing to take the canal and its lands (not absolutely, but in trust,) and

finish

the work through fo the Ohio

ri.-er, advancing one-third or more of the cost of completion in cash and using the

.ar.ds for the balance so far as pacticable, and taking their recourse for this advance, 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 of lands without imposing any further debt upon the State, but 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. Ihe bill shows in divers sections by affirmative as well as bv negative expressions that the Canal was charged exclusively with the pavment of one half the interest o' the entire debt, and that the State and her plighted faith were discharged from the same.

By the 32d section of January 19, 1846, ihe State reserved the right to charge exclusively upon 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 first section 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 live per cent, per annum, the principal and interest to be charged on the revenues of the State and, also, by giving to each such holdei another certificate for the

half of the principal of such stock to bear a like interest of live per cent and to be )idid and redeemed, and only paid and redeemed out of said canal lands, and the tolls and revenues of said canal and from and after the time that the State shall call in said stock issued under the lirst sect ion of this act, and shall issue new certificates, as atoresiiid, ihe State, its

the principal and interest at ti\e pel centum per annum thereon and ^for the

other

half orsaid principal and interest the holders of said certificates shall look solely and exclusively to said canal lands and the tolls and revenue of said canal." 'Ihe said act of January 19, 1840, w.is submitted to a committee of European bondholders by Mr. Butler, and that committee, at a meeting held in London, May 30, 1840, formally^resolved to concur in the principles laid down in the act ol the Legislature passed at Indianapolis, on the 19ih of January,for the adjustment of the debt of that State (Indiana)bv pay pav men of one moiety ol theprincipal and interest by taxation, and the other moiety by the properly and tolls of the canal from the State' line adjoining Ohio to Evansville on the Ohio river such property to be assigned to three trustees, anu the State to be freed Irom le-ponsibility on that portion of the debt and interest so to be secured."

This resolution was communicated to Governor Whiteomb, who, in his message, delivered December 2, 1846, sub mined it to the Legislature and construed it to mean that the State was to be freed from all responsibility on ihat portion of the debt and interest, which was to be charged lo the canal.

The supj emental act of January 20, 1847, is chiefly the work of the London commitiee, and the very lirst section in the exercise of the option reserved to the State bv the thirty second section of the original act, declares that one half the principal of the debt shall be charged upon the Treasury of the State, and ihe other half upon the Canal lands and lolls and revenues of ihe Canal, as provided in the 32d section of the original act, and that 11(1011 the surrender ol the State bonds then outstanding, two certificates shall issue to each holder, each for one half oj* the principal, one chargeable on the Treasury of the Stale and ihe other on lbe Canal, its lands and revenues.

The followine cxnact from the message of Governor Whiicomb, deliveied to the General Assembly on ihe 11th day of January, 1848, not only shows the same construction of the airangement, but, in a few brief sentences, explains the difference between the original and supple mental bill. The extract is in lhe.-e words, viz.: "But while the original bill gave the State the op.ion ot aiterwards throwing one-hall of the princijxd also upon the Canal for payment, by the supplementaiv bill (and consequently by the law as ii now stands), that object is at once effectrd by one half of the surrendered debt, both principal and inteiest, resting exclusively upon the Canal lor payment, the State being released from all further responsibility in relation lo it. The great and leading principle, therefore, of the first bill, namely, the satisfying of one half of the suriendered debt from the Canal remains unchanged, nor does the supple- ..... 1 r1 r.. I.

out of the tolls and profits, over those who wouui not join in its construction." The character ot tin

works

to secure the periormance

ol that pledge. The Canal stocks received in lieu of one half of the principal of these bonds so surrendered contain no

promise

•irraiio

on the part of ibe Slate io pay

,e- v'"

s!oc

blll the

^l im-tlnu lihertv to make anv pro- I nant or prom.-e to pay the mor.gage

arrangement

,t?:,,ferz

.a .,

tnjii navfflfiH of he ium claim* ot ttic ^. .... ,»».. or .I,

principal anil inieie^t of the bond? in •_ ..«• !t mtmi'oct lliftl

r,Ta «t ^ks This memorial had been. sidered that a payment ot a part oi inej The last reference I shall make in proof said stocks, iiii. memo taxation and a charging of the of the first proposition is to an opinion of however, before recep ion an.pa deb ,usiv ,v

£»e Si iht

trnJljRkm. Vi It.'

..ledge of the faith ol ibe State

()i

„-hole obligation is ex-

sed jn

{iese

wor

ds, "that the Wabash

& Erie Canal, and all tolls, lands and ef fects api*rtainini thereto, from the State line 10 Evansville, Ac, are irrevocably pledged in virtue of said acts, &c-, to A.

«as accepted, and mcorpora ed m- assigns, for the sum of to ihe act of January 19, 1846.

'000'-i

Although Mr. Buiie, did, int hat prop- ^abli-hed principle of law, TMI language upon winch the

1• a, c\

stocks now place so independently of statuiory enac ments,

much sties- totlie effect that he did not that where a mortgage contains no cove- ,he

nam v» i" c-

money, and there is no such covenant o.

thi- 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 Butler Bill, speak ing of the surrender under it by one of the parties to the suit of certain bonds of ihe State uses this language: "The holders of the latter bonds believed that with the S'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.

of this rule and that Indiana, in the matter complained of, has done nothing which a natural person could have been compelled lo omit, and bas omitted nothing which such a person could have heen 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 ihe Butler Bill, authorized the construction of a system of railroads, which, coming in competition with the Wabash and Erie Canal, has so im paired its revenues as to destroy its value a a security. That railroads have been built in (his Slate by incorporated companies, organized or assuming lo act under Slate laws passed since the transfer of the Canal to the Trustees, cannot be denied, and it must be admitted that one of these roads does come in direct competition with the Canal, and has largely c. ntributed to ihe reduction of its revenues. With this admission, however, wc insist that there is no stipulation in the Butler Bill or elsewheie, restraining the State from developing her resources by the construction ot railroads either by direct State action, or bv authorizing their construction by incorporated companies. Covenants or stipulations must be construed in reference to the main scope and body of the instrument in which they are contained, and cannot by wresting them from the context, be made to apply to matters not contemplated by the parties, and which would r.ol have been agreed io if they had been suggested prior to the closing ol the compact. The memoiial ists, to make out a breach ot covenant on the (tart of the State, rely upon the stipulations contained in the fourteenth section of the Supplemental Act of Jannarv 27, 1S47, but omit the recitals which give significance to the language employed and to sustain their construction they enlarge the scope of the stipulations therein contained, in a manner thai no lawyer would pretend to do in const! ning a a contract between individuals.— Covenant's in restraint of any lawful business or trade are never implied, and when clearly expressed, are considered to be against public policy, and there ore strictly construed against him who seeks to enforce the restraint. Hoe is an arrangement made between the Stale and a p.rtion ol her creditors, not before the invention ol railroads, but after their practical introduction into this Siate, whereby, will: the assent of the cieditors, onehalf of the debt ol the State is charged on the revenues and treasury of the State, and the oilier hall exclusively upon the

Wabash and Erie Canal, is lands and revenues, without a woid being said in legislation, or in the negotiations which led toil, about the State being restrained in her right to make railroads, or lo authorize others lo build ilicm within her limits and yet it is insisted ihat the covenants made by the Stale, in relation to the things she did agree to do, or omit, are to be extended by construction or implication, so as lo embrace a covenant io abdicate her sovereignty and refrain, forever, or so long as the arrangement should continue, from building, or permitting to be built, an" of these great instruments of modern civilization and progress, which might .ompcie wall said canal, or impair its revenues.

Suppose Mr. Butler, in his negotiations with the Legislature, had made it a part of one of his propositions that ihe State should never build, or authorize the building ol a railroad within her limits that should, to any extent, great or small, come in competition with the Wa-ba-h and Erie Canal, is it not certain that the proposition, so long as it contained such a feature, would have been prompt lv rejected. The construction contended for is monstrous. Indiana never expressly or by implication, stipulated lo stand in the way of her own development, or of the development of the nation by prohibiting railroads from being built within her borders that might come in competition with ihe Wasbash and Erie Canal.

If, however, for the sake of the argument, we admit the construction contended for by ihe memorialists, still there is another complete and perfect answer to he claim made by them. It is notorious that since ihe transfer of the Wabash and Erie anal to the Trustees, the State has not, made a single mile of railroad.— It is equally true that no line of railroad has been 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 Waba-h Valley Rt ad This road does run parallel wiih and near the canal from Fori 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 Evansville and Crawlordsville Railroad, extending from

Evansville io Terre Haute, is also a competitor of the canal, the reply is, that the canal from Terre Haute to Evansville was a failure from the beginning, and never was in a condition to compi with good wagon road between the two points above named. This reduces the grounds of complaint to the failure of the mate io prevent the construction of the Wabash Valley Railroad.

The Constitution of the Slate was amended in 1S51 so its io prohibit the

—, *,1 incoiporaiion of railroad or other com

mentary bill involve the State any furt hei 1 i._: u... in debt. The main difference between the biils con-ists in the latter giving to the bondholders, who should finish the

road ^I'aw

bonds

surrendered

and the stocks recehed in lieu thereof, prove ibe same theory, ihe uiUs sur rendered pledged the faitii of the Slate for their payment, and mortgaged the public

Pa7ndera

H.k. t»iidl« it '& \y.l».l. V.llei IBM

Iding

Railroad, i' was derived from this gene ral law, tot it is certain ihat no special charter was ever given lor that puipose. It either was or was njt a part of the contract between the State nd ihe holders of the caual slocks that the State should neither build or authorize the buildingofanv lailroad that might compete with the canal. If it was not a part of the contract ihat the State should be thus restrainvd, then the claim made by

this

the Sta^e, except the

alII

io the mortgaged property for satisfaction.

ll* ca*

l|oncd ,n

d, liien ttie claim maue ov

memorial

,I0rjze

lhe bilIldlng 0

COI1«,rilClion

bv vaiid

TERRE-HAUTE, INDIANA, WEDNESDAY MORNING, JANUARY 11, 1871 jPAYABLE IN ADVANCE

anv railroad

of which was interdicted

sub-isting contract made by

ti.«ro i« no »i:rli rmennntnr ,|1CaState- If the Mate by ibe arrange-

ment of 1847, con'iacied that no such im-. provement as the Valley Railroad should be made, a subsequent aui horization by ihe State of the uiakingoi the road would be an attempt to license by Slate law the impairing of the obligation of a contract a thing which every Slate is, by the express terms of the Constitution of the United States, inhibited from doing.

,he ,and and rev- ,he Supreme Court of the United States United States, iiwim.en irom uomg. ju" "l870l"jf

{°tmr of'

*»5'

not ,0

intended to pass an unconstitutional act, and if the general railroad law is susceptible of two constructions, (he one constitutional and the other unconstitutional, the former intepretation must be adopted and the latter rejected. Upon the theory, then, that the State was I 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 umestricted 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 any contract Upon the assumption that the building of competing roads was prohibited by the con tract and upon the construction of the general railroad law of 1S52, just suggested, it follows that the construction of the W'abash Valley Railroad was nuauthorlzed by that act, and was therefore, an ille gal act which the Trustees of theCanal— wo of whom art selected by the holders of the Canal stocks—or the stockholders themselves could have restrained by injunction. The Railroad, of theconstrucion ol which complaint is made, was but bv person*

The second proposition is, that the State 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 charg ed upon the canal. It is a principle of public law which this Siate has nodi-po sition 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 'OU JU Uc tuui^eiicu uy atuuii at i« ui suit in equity to do, oi to refrain from built, not by the State, DUI DV persons doing. We insist, however, that the good acting or assuming to act as a Corporalaith and honor of the State do not de- tion under a pretended authoi ity from mand anything bevond the requirements the Stale, and these persons were amena l_ 1 I 11 1. ... kU In Ai'fi] nn/1 ilio «nr

HIV UIU1V, V»V. -v.. V..V.

ble to civil process, and the Federal and State Courts were open to the memorialists and could have afforded them a complete remedy, ly injunction, for what they now say was an irrenarable injury, done by authoiity of the State?

Suppose the W'abash 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 iu the bed of the Wabash and Erie Canal, could the Canal Trustees and the holders of the Canal Stocks have stood by and witnessed such an appropriation of the canal under the pieteuse that il was authorized by the Stale, and then make this tort of the Railroad Company the basis of a claim against the State.

It the holders of the Canal Stocks had vested rights in the Canal, as they insist in their memorial, then the State did not and could not authoiize their destruction, and, with the Courts open to them, it is marvelous that they stood by and witnessed this destruction without an effort to prevent it. Such conduct is only consistent with the theory that they themselves believed that the acts now complained of were not a violation of the State's covenants, but what the lawyers term damnum absque injuria, that is, a loss without an injury, a loss tor which neither the Slate 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 cur lencv to the imputation that Indiana, in refusing to charge these Canal Stocks upon her Treasury, is guilty ol repudiation. and ii seemed proper that the public should be informed through some official channel, of the views entertained by our people, together with the grounds upon which lliev are based.

Beiore dismissing ihe subject, I earnestly recommend the passage of a joint resolution proposing an amendment lo the Constitution so as to declare that no act of legislation shall ever take effect or be come a law of this State whereby said Canal Stocks, or any part thereof, shall be recognized as a debt of the State or charged upon the Treasury thereof by way of redeeming said canal or otherwise, until such act of legislation shall have been submitted to and ratified by the qualified elector* ot litis State al a special election to be held for tliat purpose in pursuance of law, a majority of the votes cast at such election to be necessary to effect the ratification.

SINKING FL'SD.

The report of the Auditor of State shows the condition of the Sinking Fund to be as follows: Money on hand £550,916 **0

Amount secured to the fund by notes :inil mortgages 20J,911 2-5 Due from .State for stocks redeemed with the fund, for which no bond has beun issued to the

School 1- und by ibu Slate 133,300 Ci Due from the tate foi advance to Southern Prison to repair tue damages dune by lire Due from the .-t,ite to complete .•supreme Court room, ie

Total

12,000 00

6,802 30

?912,027 64

From which, deduct amount in the fund belonging to owners of mortgaged property sold, the sali* being in excess ot amounts duo 4,114 10

Net balance of moneys and cffccts in the hands ot the Auilitor $1)0.,912 04 I recommend that ihe amo tnt due to the fund lor Slate slocks ledetmed, be seen ltd by a non negotiable bond irom the State to the School Fund that the other small sums due Irom the State be immediately refunded to the Sinking Fund by an appropriation for that purpose and that the moneys on band, and the uncollected securities, as last as realized, be invested in ihe registered interest bearing bonds ot the United States, so that the Fund may be made productive, and the income thereof distributed lor common school purposes.

Ihe wisdom of making the Auditor, instead of the Treasurer of State, the ireasurer ^f this particular fund, is not very apparent, and I hope the fund may be tiansferied to the Treasury, and its prompt investment secured by proper enactments. WAR CLAIMS AGAINST THE GOVERN

MENT.

When the condition of these claims was leportid two \ears ago, the tenth nstalltnent thereot, amounting to$125,721.80, bad not been passed upon by the Treasury Department. On the tih day of December, 1S09, 1 received a draft or warrant from the Treasury of the United States, payable to my order in mv ollicial capacity, for ?41,412 15, allowed on this installment, which l,on the same day, paid inio the Slate Treasury, and received a quietus for that amount. The items constituting the residue ol the installment were either di-allowed or suspended lor further explanation or proof.

In the latter part ot April 1870, I succeeded in having the papers and proofs piepaied necessary for the presentation of

additional claim designated as the Twelfth Insiallment, for moneys advanced for the purchase of horses in 1861, for the miJiiarv service ot the I nited States, and amounting as presented io So5,282 12.

As ihe papers and forms of proof of this insiallment had been prepared bv Gen. W. II. H. Terrell during bis service as Adjutant General of ibis State, and as lie understood and could explain the iieins constituting ihe claim better than

pmies bv local or special legislation, but any other person. I sent all the papers to aPll wing ileir organization under gener- htm at u-hmgton, ami requested him a laws to be passed lor that purpose present anl prosecute the claim in the Bv reason of.his, ihe General Assembly, Treasury Department assuring him that

"3?' "il- wmpens^ion joH.is services. The claim

ury of tne Un ted States, for S23,2o5, pi.aoieiomv order in my official capaciiv, and immediately paid the same into the State Tieasiirv, an received a quietus tor the amount.

The items consiituting the residue of this in-iallment wereeithei disallowed,or suspended for further explanation and proof

The 11th installment of our War Claims was for moneys exuendtd by the Sta!e

falls to the ground. If the equipping and sub i-liny St a troop- be-

conirac did re-train the State ascontend longing to the Indian Legion, vvh in ed for, then the que-iion arises whether actual service u,™ the call of the Govthe general railtoad law of 1852 author- ernor during the rebellion Lnde the ized .be building of the Waba-h Valley I of I on«ress of March 29 186 I on. Railroad. It must b, admitted that said 'o'1" Broadhead, Hon. K. Fltn and Col. |a„- is -eneral in its terms, and contains R- Kinney, were appointed Cotnmisno express restriction on the subject of toners to ascertain the amount exp nded lines of railroads that might compete with by thw State in enrolling, equipping, subhe canal and vet I in-ist that .he gene- trans,«r.,ng and paying such ral railroad law conid not, and did not, Sta.e torees as were called into service in authorize the building of anv railroad «.i- **te alter the first day of January.

1862, to act in concert with the United States forces in suppressing the rebellion. Said Commissioners met at Indianapolis in March 1869, and did not complete their labors till the latter part of Sepiemler or the beginning of October of the same year, at which time they made a Keport awarding lo the

con

*be

Stale $481,178 24,

for moneys expended for the purposes

etuplated by said Act of Congress Of the amount thus awarded, the Treasury Department allowed the sum of $464,

^ivf4

from the Treasurer of the United States days a drai't for ha( amount which was imme diateiv applied through the Bo.ird of the State Debt Sinking Fund Commissioners, to the redemption of the outstanding foreign indebtedness of the State as stated in a former part of this communication.

The

niims

received from the Govern

ment since the Report contained in the Message delivered at the opening of the General Assembly two years ago, amount in the aggregate to $529,690 39, as follows, viz:

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

Total

$529,690 39

The Sth installment,amounting, as presented, to ©606,979.41, cannot be heard or adjusted by the Treasury Department until there is additional legislation authorizing it. There is a bill pending in in the Senate of the United States which, if it shall become the law, will provide for the auditing of the claim. This i_- a -J .I repudiate that of the State Board. claim is chiefly for interest paid bv the 1 have caused a tabular stateme State on her War Loan Bonds issued for

money borrowed to aid in the

TAXATION OF RAILROADS.

At the last Special session, I called attention in a message which will ne lound at page 122 of sheSenate journal, and at page 174 of the House journal, to some very glaring defects in the present law for the assessment and taxation of railroads, through which great injustice is done to the State and to the owners of other kinds of property subject to taxa tion.

I now respect fully call attention to that communication, and renew the recoiu mendations made therein.

TAXATION OF BANK STOCK. I repeat (lie recommendation made at the opening of the last General Assembly, that provision be made for taxing the shares of st-ock in the National and other 15anks, lor municipal purposes, as other properly is taxable.

The opinions then expressed as to the power and duty of thus legislating remain unchanged. ASSESSMENT. EQUALIZATION AND COLLEC

TION OF TAXES.

The entire taxable property of the State for the year lf6S, as ii appeared on the duplicates was $591,979,964 00. Under the operation of the new appraisement of real estate made in 1869, if we treat the pioceedings of the State Board of Equalization a* binding, the duplicates of 1S69 ought to have shown the aggregate amount of the taxable property of to be S671,220,955.00, or an

the State —, increase of 679,240,1)81.00. 11 all this increase had been carried on the duplicates, it is safe to say that even then the hfjtires would not represent one half of the real value of all the property that is taxable under our laws. The law requires property to be valued at its true cash value. This language as applied to the appraisement of real estate for taxation is construed to mean the sum that the property would command in gold at a lorced sale, and by this construction the appraisement is reduced to less than onehalf and in many instances to less than one third of the amount that the owner would be willingto take for the property, or than a prudent man desiring to purchase would give for it. Tlieieseems al«o in many cases to be a rivalry, not only between individuals, but between the* officers of different counties to depreciate the value ot their taxable- on the duplicates. County officials take it for granted that ihe real estate in her counties will be appraised greatly below its true value and, upon this assumption justify themselves in making a grossly insufficient appraisetnentas an act ofnecesaa ry self deteiise to prevent an excessive contribution to the common burthens. Nor does the evil stop here: The man whose taxable- 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 a similar standard. The practical effect of this is to depreciate the wealth and importance of Indiana in comparison wiih other States, and the tendency is to keep immigration and capital from the States. 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 recommend that in imitation of the assessment laws of Michigan, an amend ment shall be passed declaring that the words "cash value," as applied to the ap pratsement of property for taxation shall mean the usual selling price at the place 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 devise some remedy to prevent the demoializing practice of counties and individuals competing with each other in the valuation of their taxables at rates grossly disproporlioned to their real value.

The action ol the Stale Board in equalizing the appraisement of real estate has been disreraided in many if not all of the countie- in which a per centum was directed to be added io 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 Duplicate*. I5y this failure comply with the action of the State Board, and by unauthorized deductions not direc ed by that Boaid, the total value of all the taxable properly of the State, as it stands on lhe duplicates is reduced more than lil'teer. millions of dollars below what it would have been if the action of ihe Stale Board had been carried out, and 110 such unauthorized de ductions had been made.

At lhe last special session, the attention of some of ihe members of each House was called to lhe fact that, by the change in the boundaries of the Contrrcssional Districts, the law as to the places of the meetings -f the District Boards of Equalization in seven of lhe Congressional Districts had liecome impossible of execution, as the statute le quiied each District Board to meet within ihe District, and .• place designated and this designated place had, by the change in the apportionment, been placed without the Dis.tricl to which it formerly belonged.

A bill passed theSenateto remedy the difficulty, but was not acted upon in the House. The Auditor of State, by Advice of the Attorney General, designated lhe places of meeting of the District Boa id- in the seven districts in which the law had become impossible of execution The Auditor of Marion county, in mak

that i'« meetings were continued beyond the time limited, and that the order of equalization was made on the twelfth day af.er that on which the Board met and organized.

The Circuit Court refused the mandate, and, although the case was prepared for the Supreme Court by a reservation of the proper exceptions, no appeal has been taken—Attorney General Williamson having, as I am informed, come to the conclusion that the judgment ol the court below in refusing the mandate could not be reversed

After examining the question with some care, mv own opinion is that, the objections 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

rarp

„v

cnmu

|pil

stippres

sion of the rebellion. I append to this communication a tabularstaiement 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 the present condition of such as .,re still unadjusted. I feel assured that, in the suspended and disallowed jtems of the different installments, there are very considerable sums that are justly due to 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 efficent prosecution of such claims without promising a large compen-ation for the service, that I prefer that the General Assembly should act iu the matter, rather than to assume the responsibility myself.

Something should also be done to prevent the remrn of such large delinquent lists. Our delinquent list compares very unfavorably with those of other States, arilv bcca.ise men arc returned as de .inquent from whom ihe taxes could be made if the proper time was allowed, and he proper effort made lo collect, and partly because delinquencies are carried on the duplicates long after lhe possibiliof lheir collection lias ceased.

Provision of some kind should be made for purging ihe duplicates of this worse than useless matter, the placing of which on the tax rolls adds eon-iderably to the county expen-es, and gives a taore unfavorable opinion of the willingness and ability of our people to pav their taxes than the truth would justify.

I) ATTOS'.

The report of the Superintendent of Public Instruction affords gratifying evidence of tiie progress of popular educa tion throughout the State. schools are continua... favor, and were never so efficient as they now are in training our children for the high duties of American citizenship. I am sure they will continue to deserve and receive the fostering careof lhe General Assembly.

torecognize the action of theState Board jheir corporate "f, Forrte

directing an increased per centum to

real estate of that county, the Attorney General, on the relation of the Auditor of Slate, commenced a proceeding in Marion Civil Court lo compel the Auditor of Marion county to comply with lhe order of the Siate Board of Equaliza tion.

The question was presented on its merits, two point* 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 defecate* to the Stale Board, and that the State Board having been omposed of delegates, a majority of whom were thus appointed, it also was an illegal body, and its acts were void. 2d. That the session of the State

therefore have no concerning its progress, wants. I believe it in work, and is a necessary part of our common school sy extend its berri!fits to those whu enjoy them, it would seem to 1 sary that some plan should be de whereby the cost of living to those attend its sessions from other parts of State should be diminished.

BENEVOLENT INSTITUTIONS.

INSTITUTE FOR THE BLIND. The Indiana Institute for the Edu tion of the Blind, is, in the language the Report of its Trustees, "enjoying high degree of prosperity, and doing work well and to the credit of the StafTo enable the Institution, however, to all the work which ought to be done, must be enlarged. There was a presain necessity for-imch enlargement two year ago, but the officers of the Institution, in consequence of tfie appropriations relired by the Hospital for the Insane and the Institution for the Deaf and Dumb, deferred urging an appropriation for that purpose until now. tor the extension of the Institute building and for other improvements mentioned in the Keport of the Superintendent, it is estimated that the sum of $65,000 will be quired. I earnestly recommend that sum above named may be appropri&tea for the extension and improvements required.

HOSPITAL FOR THE INSANE

urative legislation, me necessity lor I cordially commend to your attenueh legislation is clear for. if the State tive consideration, the able and instruct .-1 .... Ml 1 _t..— a Pannvt tltn SlinApintAndant /\f V.

tl.C L/ruibt UCCII Ual I ICU UUl »«»v uioiiiaMvii by some of the County Auditors who so that there is now room for 520 inmate*.

finm tIl kpl

By this statement it will be seen that in some counties, after deducting the per centum authorized by the State Board, laree additional deductions have also been made. 1 will cheerfully furnish copies of paid tabular statement to the committees to which ihe subject may be given in charge, it being too extended to make it a part of this communication.

In view of what has been said, I respectfully recommend that the meetings, organization, ami proceedings of the district boards be legalized that the proceedings of the State Board be thorougly revised by a joint commitiee representing all parts of the State, and, so far as these proceedings mav be found to be just and equitable, let them be affirmed and. so lar as they are found to be otherwise, let the appraisements lie so altered as to make tlieni conform lo a just standard anil lien lhe equalization is completed by the comniinee and approved by both Houses, let it be made effectual by prope- enactments.

I further recommend that provision be made that future appiaiseincnts of real estate for laxation shall not become effectual until they are submitted to, and revised and affirmed by the General Assembly at the first regular meeting thereof after the making «f such appraisements ami providing also that, il any County Auditor shall fail to conform to ncli appraisement after it has thus been affirmed, he mav be proceeded against by action on bis bond, or bv a proceeding for a mandate in the courts of Marion conn ty. Whenever the interests of the State are injuriously affected by the official negligence or official misconduct of a county officer, such county officer should, in my judgment, be liable to an action in somecotirl at the Capital of the Slate. The existence of such liability would prevent ihe delinquencies that are now =o common.

Such practices slioohf be prohibited p0tent jn developing the latent resources proper penalties by plain statutory

tents, to be published as a part of

AGKICUl.TUIt A (.MI.I.KtiK.

In pursuance of the act of May Olli, 1869, the College contemplated by the act of Congres of July 2, 1862, was in 1869, located in l'ippe -anoe county on a tract of land containing one bundled acre- donated for that pur|tose and situated on the west side of the Wabash

uated on he west side of the W a a.

bond to the State for the payment ot Hie

donation of SI50,000 offered by liini, the tine being payable in annual in-tallmenls in pursuance of bis original prwptrsilion. The Board of Trustees of ibe institution

Ilie

Board of Trustees ol the instil

larion county, in mak accordance with the provision-,

ine the duplicate of 1857. having failed act of May 0th, 18bJ ha\e as ne_

iVniiees of Purdue University." For the

lnl

°e

be added to.he appraised value of the condition of the funds of ibe Institution

and other information pertaining ihereto, I respectfully re'er vou to the report of the Secretary and IVeasuret of the Institution herewith submitted.

Bv the act of May oth, 186-j, the Governor is made a member and President of the Board of IVustees. The land scrip having b«en dispo.-ed of and the money safely invented and the College being located, no sufficient reason in mv 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 of the Board

KORil AL SCHOQIi.'

I have received no report from the

2d. Ihat the session ot tne oiaie ».o ..w BOARD WM, by the itatute, to ttn offiwrt OF th# State ormal School, |J»a

tjie

largely increased. C»V\

Dosru. It is susceptible of a comparatively small

1 have caused a tabular statement to be additional increase of capacity byenlargcare.tillv compiled from the Keport of ing the south wing. Apart from the fact the Auditor oi Stale for the year 1S69, it may be safely estimated that not more arranged by counties in alphabetical than one-third of the insane of the State order, showing in separaie columns what the aggregate value of the real estate and improvements would have been in each county if the action of theState Board had been carried forward to the duplicates what it is as actually entered on the duplicates of 1S69, with the increase or decrease occasioned by the failure to follow the ordeis of ihe Board.

who ought to receive the care and treat* ment of such an Institution are now provided for, it would seem that the Institution should be thus enlarged to equalize its capacity for. the reception of patients of both sexes, the number of applicants for admission of each Mtng about equal. If the south wing shall be thus enlarged, the capacity of the Hospital will then have reached a limit beyond which it would not be wise to extend it, but instead thereof provision should be made for the erection of another Institution at some other point in the State.

It may be a question whether thw should be attempted before making some provision for the care of the idiotic, and for the education of idiotic children. My impression however, is, that the sufferings of the insane still unprovided for ar« more severe, and that their condition more urgently demands speedy relief than the other unfortunate class to whom allusion is above made. 1 invite your consideration to the necessities of both these classes of unfortunates, in the hope that you will provide such relief at the earliest practicable period as the 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 hospital 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 figcal vear of the hospital. I recommend that* this deficit be immediately supplied by an appropriation so that the officers of the institution may not labor undei the disadvantage of having to make then .j purchases on credit until the passage of (he General Appropriation Bill, at or -J near the close of the session. SSI

I also ask that the amount necessary to pay for theMvater works furnished for the institution, and now in successfulope» ration, may be appropriated without delay-

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

DEAF ANI) DC Mil ASYLUM. The institution for the education of the deaf and dumb not only successfully continues to perform the beneficent work for A which it was established, but, through the liberality of the last General Assembly in providing for its enlargement, the sphere of its usefulness lias been greatly incicascd and extended. The contemplated extension of the building having been completed, the capacity of the Institntion is now believed to be sufficient for the accommodation of those entitled to its benefits for yesrs to come. After the new building was completed and ready for being fitted up and furnished, the sum of $10,!)24 was drawn from the Treasury of the Slate on the application of the Trustees and Superintendent, and applied to fitting and furnishing the enlargement under an express anihority giveh for that .J purpose in the organic law of the Insti-

Dtilar educa- tution. By reason of the enlargement, to Tl.o common

l'ie

present school year commenced and

crowinsr in public continues with a larger number of pupils ... 1 than was estimated for when the appropriation for current expenses was made two years ago, and consequently there will be a delicit of $7,000, which sum I hope will be appropriated without delay,

As the State school tax, as well as the income of the Common School 1"und, is distributed among the several counties accotding t. the number of children in each, ii is highly important that the enumeration upon which his distribution is ba-ed should be Iree from the least suspicion of unfairness or inaccuracy, lo this end lhe law should be so amended as to require not only the names of parents, guardians and beads ol families toappear iu the list, as is now the case, but the names of the childi en belonging to each family (which is not now required) should aNo be given and after the County Examiner has reported ihe enumeraiion to the Superintendent of Public Instruction, the original enumeration papers should be required to be tiled in the office of the County Audi.or, to be preserved, and to be open io public iu-pection. Authority should also be given to ihe Su|ierintendent of Public Instruction to cause the enumeraiicns to be revi-ed, and, it found to be inaccurate, correc cd before making the di-ti ibution and, also, io equalize in making sub-equent distributions, within a reasonable time, lo be prescribed by statute, any inequitable distributions which mav have been made on an incor rect enumeration. Seveiepenaltiesshould also be provided .or official malleasance in making the enumerations.

My attention has been called to the fact that some Township Trusteed, instead of keeping the -chool moneys in their hands separate from township funds, confuse the moneys and accounts, whereby school funds are applied to roads and other township pur|roses to the temporary injury or peimanent loss to the schools.

Such practices should he under proper penalties by plain statutory enactment the sell of ever

that 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 mav be avoided.

SOLDIERS' HOME.

I commend the Soldiers' and Seamen's Home at Knightstown, and especially the Orphans' Department thereof, to your especial consideration, with an expression of the hope that It may receive a more liberal support at vour hands than has hitherto been accorded. Thus far it seems to have been reluctantly admitted into the family of our benevolent institutions, and it lias appered to be more difficult to get appropriations for its sup-

^late)

ant|

t0 QUr

tool law, anil placed iii the hands

Township Trustee. viding for the establishmtnt of a Department of Geology and Natural Science in as ureai tv en- connection with the State Board of Agrilarged the sphere of its usefulness in culture. On the 22d day of March, 186tt, consequence if the liberality of the last I I appointed Professor Edward 1. Cox to General A-semblv. as well as the one the office of State Geologist, created by preceding it 1 commend the institution that act, and soon after be established a continuance of lie favorable cwiiid- himself at Indianapolis and entered upon eration ol .he General Assembly. the duties of hwoffice. The act required him to makea survey, from time to tune,

STATK r.S'lYKHSITY.

The Stale University has greatly en

ded that

,abor and

-j

I L...n f/\ nmf IrinrlrAr) mat itllf IAn .-' port than for any kindred institution.For my own part, I know of no class of the meritorious unfortunates who are en-

titled lo a fuller measure of the sympathy and care of a benevolent and patriotic people than the sacred veterans and soldiers orphans now in the "Home" at Knightstown. The amount heretofore allowed for the current expenses of tliej Institution has been insufficient, and this year again the Commissioners have been compelled to borrow So,000 to enable them to meet ihe necessary current expenses. I believe that the affairs of the Institution have been managed with,: marked judgment and econjmy, 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 benevolent institutions of the State. THE STATE BOARD OF A(1HICUI.TURK ANU

STATE GEO LOO 1ST.

It may well be doubled whether any act of legislation has been adopted by this State for many years, which will prove so

directing attention,

wealth and manufacturing

a(]Vantages

as that of March 7, 1869, pro-'

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 little assistance he was able to

•i .i- employ.it was impracticable for the

Ge()1 isl exten(

river, about one mi and a half from the «cope ofcoimtry, unless he disrecity of Lafavetie. Mr 1 urdue gave his

his labors over a very

thoroughness ffhich is essen-

it_. ,Aanli

tial to the attainment of valuable results. He selected, as (he chief fieid of his oper ations, that portion of the State which previous partial surveys had designated

the reg on

hose development would

be of the

greatest immediate practical

jue(o

the emire

gtale) in attracting both

caPital

t0 and within

our,

I'0/"

labor and capital to and within our borders. I have received letters from highly J' respectable gentlemen of different counties of the Northern, as well as the Southern portions of the State,, complaining of the neglect which their respective localities had suffered at the hands of the State Geologist, but I am satisfied that the course he pursued was the wisest and best, considering the means at hu commaud and the circumstances by which he was surrounded.

I recommendthat a reasonable addition, be made lo the salary of the Geologist, and that increased means be placed at the disposal of the State Board of Agriculture for the support of4 its Geological and Sciientilic Department, so that assistant geologists mav, at the earlieit practicable period, be put in the field to haiten the completion of a survey of the entire State, [C0*CWT»*P 0* fOUHTB