AFTERNOON SESSION.
Mr. McClurg. I discover from the empty seats that the Republican members have not come in. I am aware of the fact that it is within the power of the minority to defeat the will of the majority: and I am satisfied they are prepared at all hazards to carry it out and we are assured it is their intention to do so. If there is any one thing more calamitous in its consequence than another it is rebellion and anarchy, and I regard it as the first duty of loyal citizens to take such a course as will avoid it. Patriotic hearts all over this land are watching with interest every motion of the body, and they demand us conservative Democrats to do all within the power of a sovereign State to bring about that word which would be so sweet to their ears, known in times past "peace." There never has been a legislature in Indiana since its organization, to whose action the citizens of the State look with so much interest. He recapitulated the action of the Republican party at the extra session, and reviewed the course pursued by the Executive in the appointment of Peace Commissioners. The people now look with intense anxiety to the action of the Legislature, and he eloquently pictured the arden desire of the masses of the people, shrouded in mourning as many of them were, for some hope of some time hearing that sweet word peace. The Democratic party could afford to let by-gones be by-gones and indulge in no factious spirit. The untrammelled freemen of the State have re-sorted to the ballot box and we have been endorsed, and what covers a multitude of wrongs that have been inflicted upon us. We can afford to be generous and can to-day grant the boon the factious members on the other side demand of us. If they demand to know what we propose to do, in advance, we can tell them we propose to do what the Democracy have done since the days of Thomas Jefferson--we will mete out the greatest good to the greatest number. However obnoxious the laws which may be passed by the government of the United States, we will not violate them. We propose to say to them, that we will not violate the Constitution of the United States. We will do all in our power to legitimately conduct this war for the purpose of bringing it to an honorable close, whether by compromise, or treaty or a vigorous prosecution. We will not violate the liberties of the citizen, the law of Congress or the Constitution--of all these things we can assure them. We can assure them, too, that we will elect a United States Senator for the long and the short term--men who are the embodyment of the political truth and political veracity--Thomas A. Hendricks and David Turpie--and when they take upon themselves that proud position, the liberties of the people will not be infringed. the Constitution of the United States will be revered and all that can be done will be done to avert the calamities that now hang over us. We can afford, I say, in the abundance of our success to proclaim to them in broad light--as plain as the noon day sun--that which we propose to do. When that is done if they still continue page: 19[View Page 19] factious, and treat with little regard the solemn oath they took one day ago, let the consequences be upon them and not upon us; but I appeal to Senators not to allow resentment, which is in every breast, to influence their acts, and when our country is groaning as it were in the agonies of death, not to allow personal considerations to step in and induce them to commit an act they would hereafter regret.
A message was received from the House of Representatives requesting Senators to repair to the Hall of the House to hear the Message of his Excellency the Governor.
The PRESIDENT. By consent of the Senate I will direct a call of the roll of Senators for the purpose of seeing whether there is a quorum present or not; and whether the Republican Senators will come in, and go with us to hear the Governor deliver his message to the General Assembly.
Mr. BROWNE, of Randolph. I do not think they want to hear it, sir. [Laughter.]
The roll was called and but 30 Senators answered to their names.
Mr. WILLIAMS. I see some Senators talk excitedly. I have been here long enough to take it coolly. I am satisfied that some time or other our friends will come in. Let us. go along for a day or two at least. I will say to them if they will come in and go down to the House to hear the message we can go without doing them any harm. We have joint rules that prohibit us from doing any thing in Joint Convention but the very business we assemble for. If we assemble for the purpose of hearing the Governor's Message there will be no danger of electing United States Senators. Without any authority I will pledge that the Democratic party will do that, then I think they might come in and hear the Governor's message.
Mr. BROWNE, of Randolph. I would take the word of the gentleman from Knox, [Mr. Williams,] as soon as any other man, but I do not know where the absent members are, and if I were to go out after them I am afraid that other man from Randolph county would come in and take my seat. [Laughter.]
The PRESIDENT. As far as the President of this Senate is concerned I have always been opposed to revolution. I had rather submit to a hardship for a time and rely upon the people at the ballot box to correct it, than to revolutionize. I would scorn to take advantage of the visit of Senators to the Hall of the House to go into an election of United States Senators. No such act should be done. with my sanction.
Mr. COBB. I have no disposition to enter into this discussion, but I will ask why these vacant seats around us? Has the majority attempted to force upon the minority any action they have no right to have? I tell you, in a time like this, there is a terrible responsibility resting upon the heads of this minority if they intend to thwart the will of the people of the State of Indiana. Is there any reason for this action? I tell you there is none. Now sir, what course should we pursue? Should we bow in submission to these gentlemen who are so dignified that they will not come into the Senate? I can say frankly, for one. that I shall not let them dictate terms to us. I want to tell the Senator across the way [Mr. White] that I will hold up the Constitution as a beacon light and I ask him to follow it.
Mr. WHITE (interrupting.) I will. I suppose it would be Constitutional to suppress the rebellion. I cannot conceive of any Union without the Constitution, and when I spoke of that I meant the restoration of the Union under the Constitution. Gentlemen talk a great deal about the Constitution as it is and the Union as it was. I am that kind of a man. I want the same Constitution our fathers made without the crossing of a t or the dotting of an i. If in the debate this morning gentlemen may have misunderstood me. I wish to make this correction.
Mr. COBB. The Senator is much more Constitutional than I thought he was.-- The Senator's assertion was very broad this morning. He now defines himself much better and more in accordance with my feelings upon this subject. But does not the Senator know that when this war commenced the Crittenden resolution embodied the sentiments of the people and the sentiments of his party, because that resolution was voted for by every Republican Congressman except two: and when Mr. Lincoln defined his position did'nt he tall us that he had no power under the Constitution to abolish slavery or to interfere with it? Did he not tell our ministers abroad that he had no Constitutional right to do it? And did not Mr. Seward tell our foreign ministers that when this war closed whether it closed in a reunity or disintegration, that the condition of every slave in the southern States would be the same as before the rebellion begun? Why, sir, how has that party changed its policy? What is the sentiment now? Why, it is to prosecute this war for the purpose of abolishing slavery. The late proclamation of the President of the United States is clear upon that subject, and is it not in violation of his pledges? I speak in no disrespectful terms; but when the President has placed himself upon the record I have a right to discuss the merits and demerits of his course, and no man has more nerve to do it than I have. My voice in my county led on as many soldiers and as brave ones as that of any man in the State; and I will say that when my friends came to me and in page: 20[View Page 20] sisted, on every occasion when they made up companies, that I should come forth and make speeches for them, I did it with the understanding that the Constitution of my country should be strictly adhered to. I will permit no man to go farther than I will in the prosecution of this war for the purpose of suppressing the rebellion under the Constitution.
Mr. WHITE (interrupting.) Are you in favor of amending the Constitution?
Mr. COBB. I will discuss living issues The gentleman will not find me always adhering to things that may be wrong.
Mr. WHITE. I am always going to ad here to the Constitution. The truth of it is that I am so planted and grounded upon the Constitution that I never think of qualifying myself.
Mr. COBB. When the Senator will present his question in a shape that will make it apply to this rebellion, I can give him an answer. But there are living issues to talk about now. Then, sir, I will get back to the point; and I don't know how far I have strayed away. My course is marked out, sir. I will make no compromise with these gentlemen until they convince me I have done wrong. What right have they to come in here and say that we will disturb the military arm of the State of Indiana? Have we moved in that direction? When that question comes up they can act, and it is their duty to stand here until then. They have no right to come in here and compel us to place our signatures to a writing binding us not to do certain things, and for one I never will do it.
Mr. MURRAY (interrupting.) Did you have any more right to ask that two years ago than these gentlemen have now?
Mr. COBB. I waited until action was had by the gentleman's party. But I ask if there is any similarity between the two cases? Here is something to be acted upon in the future, but then action had been taken. It was well understood that the Senator from Elkhart [Mr. Murray] was the only man who had nerve to stand out against his party on. that occasion. and I say with pleasure that he acted the part of a patriot. We looked upon him as a conservative man. But the argument against our action two years ago is an argument against these gentlemen now. There are certain acts in the history of legislation that may be resisted by revolution in that way, but I think the Senators upon the other side were convinced that we acted justly and therefore they conceded what we asked upon that occasion. But suppose we had not, our action then was different from the action of this minority now, as I have before shown, and I am content to let them keep the responsibility upon their own shoulders.
Mr. MURRAY. I shall give my humble efforts to bring about a compromise between these conflicting parties to this controversy. I am not here as the mouth piece of the absent Senators--I am here against their wishes-- probably against their consent, sir. Assuming the prerogative of a Senator upon this floor I reserve the right to perform my duties as I see proper, and no party shall control my action where my conscience is in controversy. As I understand the grounds of compromise, I shall urge them from time to time, in order that we may get a quorum present. They ask a declaration of principles from the majority on this floor. Is there any thing wrong in that? When these gentlemen refused to vote for a simple resolution of support to this government the minority thought they saw a justification of their conduct. The Senator [Mr. Cobb] excuses his action by saying he could not vote for the resolution without amendment. Why did he not offer his amendment putting the word "Constitution" in it? I would have voted for it. And I would have voted for a more vigorous prosecution of the war.-- And let me tell democratic Senators that it was for the want of a more vigorous prosecution of the war that you hold a majority here instead of being in the minority." That I believe to be God's Truth. As a republican from the commencement to the present time, I have been dissatisfied with the progress of this war, and the people have been dissatisfied. I speak the words of soberness and truth, sir. I know the sentiments of the people upon that subject, sir. I live among the masses and attend all their local meetings, and permit me to say there are but two republicans living in the school district in which I reside, and I am one of them, sir. I am surrounded by democrats such as would not vote for me though a near neighbor.
Mr. LANDERS (interrupting.) If the Democratic party is loyal, why offer these resolutions?
Mr. MURRAY. I say there is a suspicion abroad in regard to the leaders of the Democratic party, that their ultimate object is, sir, to take the North Western States from the present Union, urge the independence of the South and attach them to it.
Mr. LANDERS. I say that charge is not true.
Mr. MURRAY. I do not believe a word of it. But as affording a ground work for suspicion I will ask if your party is not voting in concert with Vallandigham of Ohio? Is he not a leader of the Democratic party upon the floor of Congress?--Yes sir. And he has absolutely offered a resolution to dismember this government.
Mr. COBB (interrupting.) I think the gentleman is mistaken on this subject.
Mr. MURRAY. He did offer a resolution, sir, to cut up this government into two or three Republics.
page: 21[View Page 21]Mr. COBB. I have not seen it.
Mr. MURRAY. Who are your distinguished Readers in New York? At the first breaking out of this rebellion the Democracy of New York boldly recommended the dismemberment of this government the secession of the city of New York and the setting of it up as a little kingdom by itself. But let me come nearer home, and see if this suspicion is not well grounded. I find upon my table in yesterday morning' Sentinel a correspondence between Democratic Senators upon this floor and Jesse D. Bright, soliciting him to run as one of their candidates; and what does he say in regard to this war? Let me read it:
I have never believed that war was any remedy for existing differences between the two sections.-- As your agent in the councils of the country, I was opposed to all legislative acts in aid of this war, and if you were to offer me a seat in the Senate again, and I were to accept it, I would not during my stay there, contribute in any form to the support or encouragement of the in human crusade that those in power are waging, under the late proclamation of the President of the United States, against those who are "bone of my bone, and flesh of my flesh." On the contrary, I am for peace, peace, peace. I am now, as I have been from the hour of this inhuman, unnatural and anti-Christian war was inaugurated, in favor of a cessation of hostilities to the end that compromise might again, (as it has in times past,) perform its peaceful offices.
There is a declaration from a gentleman that honorable senators on this floor have solicited to become their candidate for Senator of the United States. Now may there not be some ground work for this suspicion? And the distinguished gentleman nominated for the long term, what has been his record? Where has been the effort of this distinguished candidate in aiding the government in this death struggle with traitors? Has he made one solitary speech in behalf of his country? In the name of God, if he has, produce the record here to-day. Has he brought to the assistance of this country the vigor of the talents he enjoys in a preeminent degree ? If he has, where is his record, sir?
Mr. RAY (interposing) I refer you to a letter of his in the Sentinel, early in the Extra Session of the Legislature of 1862a letter which was called out by the circumstances of the country, and perhaps the appeal of his friends.
Mr. MURRAY. I am glad if there is a little letter somewhere, where that gentleman has made a scratch in favor of this war. I say he should have stood by the honorable Senator from Shelby [Mr. Ray] the President of this Senate [Mr. Dunning] and other gentlemen who have contributed to this war, I am in favor of the Constitution without any amendment whatever, and I do not like such talk as being for the Constitution with an "if" and an "and."
Mr. COBB (in his seat.) I say so, too.
Mr MURRAY. It sounds like the talk of those hellians attempting to crush out the government. By these expressions and these acts of the leaders of your party there is given grounds for suspicion on the part of Union men that there are certain leading men in the north conniving in this rebellion and desiring the acknowment of southern independence--
Mr. COBB (interrupting.) Does the gentleman believe there is a Democratic Senator here who entertains any such sentiments?
Mr. MURRAY. No Sir.
Mr. COBB. Then where is your reason for justifying such suspicions?
Mr. MURRAY. I am giving them, God bless you! [Laughter.]
Mr. DUNNING (soto voce.) The Senator is making an argument for his friends and not for himself. [Renewed laughter.]
Mr. MURRAY. Yes, sir.
Mr. LANDERS (interrupting.) Do you not believe that the action of your Republican friends in revolutionizing this Senate is for the purpose of making political capital?
Mr. MURRAY. In my opinion it is the very poorest possible course to manufacture political capital. I do not think they are such fools as to have that idea. Mr. M. continued at some length, his remarks having especial reference to the Emancipation Proclamation.
Mr. SHIELDS. Gentlemen all state that the people expected before we convened here the election of Thomas A. Hendricks to the United States Senate, but that gentle man's course has been such they cannot suffer him to be elected.-- Now, if you are determined to break a quorum, there is no Democrat in the Legislature but will, if you will do the same, lay down his resignation and go home to the people. [VOICES--'I will," "I will."] To call on us for a record the second day of the session! Was there any such thing ever done before?
Mr. MURRAY. Who ever heard of an election on the second day?
Mr. SHIELDS. There is a necessity for it. A man represents us in the United States Senate who has no right to.
Mr. MURRAY. Is he not a Democrat?
Mr. SHIELDS. No, sir. No more than the devil is an angel. [Laughter.] The people all over the State expected Hendricks and Turpie elected; and when the people want anything it must be done in this country.
GOVERNOR'S MESSAGE.
The regular biennial message of the Governor to the General Assembly was now announced and placed on the Secretary's table, hand of Wm. R. Holloway--his Excellency's Private Secretary.
His Excellency's Message (coming in Irregularly) was never formally read in the page: 22[View Page 22] Senate. The document rehearses Governor Morton's external military administration for the past two years, under appropriate heads. Only that portion which relates to his internal administration is repeated here:
SOLDIERS' FAMILIES.
Notwithstanding all that was being done by public and private benevolence, toward supporting the families of soldiers, he evidence came to me from every part of the State, that many families were destitute, and that great suffering must ensue during this winter, unless active steps were taken to raise contributions and provide for the needy.
Accordingly, I issued an appeal to the people of the State, a copy of which is herewith filed, stating the necessity, and calling upon all who were able to contribute of their means. I am gratified to be able to report, that a very generous response has been made to the appeal, that active measures have been initiated in many counties in the State to relieve the necessities, and provide for the comfort of the families of our soldiers who have abandoned home and all its endearments to fight the battles of our-country. The clergy of the State were especially called upon to engage in the work of visitation and collecting contributions, and have, as I am informed generally responded with zeal and energy.
It is, however, manifest that all efforts will fall short of meeting the necessities of the case, and that Legislative aid will be required.
The circumstances by which we are surrounded are novel and extraordinary, and should be met by prompt and extra-ordinary measures.
I therefore earnestly invite the early and favorable consideration of this subject by the Legislature.
LEGION.
At the extra session of the Legislature a militia law was passed, providing for the organization of the Indiana Legion.
Although this law was defective in many respects, and should be amended, yet it provided the frame-work of an organization which has rendered most valuable service during the war. To the officers and men of the Indiana Legion, the State chiefly owes the immunity she has enjoyed from invasion, plunder and murder, by the guerrilla and marauding bands which infested many of the adjoining counties in Kentucky. Not only so, their aid and protection has been cheerfully and successfully extended to the loyal citizens of Kentucky when it has been called for. On several occasions they met the enemy in battle, when they ably maintained the credit of the State, and behaved with that distinguished courage which has characterized the soldiers of Indiana throughout this war. Some have fallen in battle, and I earnestly recommend that their families be provided for, and placed on a footing at least equal to the families of those who fall in the Federal service. They also rendered prompt and efficient service in guarding rebel prisoners when the Federal forces performing that duty were called into the field. Although the organization and operation of the Legion has been chiefly confined to the counties bordering on the Ohio river, yet much has been done in some of the interior counties, and among them I would especially notice the counties of Jennings, Decatur, Shelby, Tippecanoe, Putnam, Parke and Vigo. The response which was made from these counties, on sudden calls for military force, was of the most energetic and satisfactory character. For a full account of the operations of the Legion, I refer you to the able and interesting report of Major General Love. Your attention is also specially called to the recommendations contained in his report relative to the amendment of the Militia law. It is very important that provision be made presenting inducements to join the Legion, by proper exemptions and payment conferring the authority and pointing out the manner, by which the members of companies shall be compelled to attend meeting for drill and response to call for service. Such authority is doubtless contained in the law now, but its mode of exercise is not determined. The Legislature appropriated, for the support of the Legion, $70,000 for the year 1861, and $70,000 for the year 1862. As will appear from the Auditor's report, only the sum of $7,352 23 has been expended on these appropriations up to 31st day of October last. The distribution of the Fund among the counties and regiments, as required by the act was never made by the Adjutant General, because of insuperable difficulties growing out of defects in the law, and the organization of the companies. I trust the legislature will make prompt provision for the payment of all claims growing out of the operations of the Legion and for the proper distribution of the Fund.
Strongly impressed how much the peace and security of the State depend on the efficiency of the Legion in the month October, I summoned the officers to this city to receive military instruction in a school temporarily organized and conducted by Maj. Gen. Love. Some 400 gentlemen were in attendance, and the spirit and devotion manifested by them, and their progress in military knowledge, were of the most encouraging and satisfactory character.
PROCLAMATION CALLING OUT OF THE MILITIA.
At the same time of the invasion of Kentucky by Kirby Smith, the guerrillas infested page: 23[View Page 23] the Kentucky side of the Ohio river, from Lawrenceburg to Mount Vernon, and at several points large bodies of rebel cavalry were assembled, and seemed to be awaiting an opportunity to cross the river and invade the State. The river was very low; in many places fordable, end much alarm prevailed in our border counties.
Accordingly, I issued a proclamation, of which a copy is herewith filed, requiring all the able-bodied men, subject to military service, between the ages of 18 and 45 in the counties bordering on the Ohio river, to assemble at stated periods with whatever arms they could command, to organize themselves into companies--and be instructed in military tactics. This proclamation was very generally acquiesced in, and carried into execution by the people and was continued as long as the emergency seemed to require. The preparation thus made, in connection with the Legion, for repelling and punishing invasion, deterred the guerrilla and marauding parties who were plundering and murdering the Union men on the other side of the river, and protected the lives and property of our citizen.
ADJUTANT GENERAL.
I lay before you the able and interesting report of Adjutant General Noble.
It contains a brief history of the operations of the State in furnishing troops for the prosecution of the war and much more valuable information. I have instructed him to prepare another report, to contain the name of evey officer and private soldier who has entered the army from Indiana, with the number of the regiment, company or battery to which he belonged. Such a report would be invaluable hereafter as a work of history.
STATE AGENCY.
The report of Hon. R. N. Hudson, the Agent of State, is herewith laid before you, and your attention invited to the recommendations contained in it , to change the form of indebtedness, by substituting coupon bonds for certificates of stock, and abolish the office of Agent of State, us at present organized. By the terms of the compromise with the bondholders, made in 1846, the State is required to keep an office in New York for the transfer of our stocks and the payment of the interest, on them. But this agreement can be complied with fully by selecting some responsible bank, in such manner as mar be determined upon by the Legislature, to perform the duties that are now devolved upon the Agent of State. Under the present system the risk attending the solvency of a bank has to be incurred, for the Agent, having no means of safe keeping the money remitted to him by the Treasurer of State, deposits it in bank,and in payment of interest to the holders of our stocks gives his checks upon the banks.
So much of the business therefore, being necessarily done through the bank, I am of the opinion that the rest of it could be devolved upon the bank, with increased safety and economy to the State.
In 1846 the State of Indiana made an adjustment with her creditors, under which the former State Bonds were to be surrendered and cancelled upon certain conditions, and new stocks issued in exchange. Out of this adjustment sprung the Indiana Five per cent. Stocks, as known in the New York market.
One of the conditions of the adjustment was, that the State should establish an agency in the City of New York for the transfer of these stocks and the payment of the interest upon them.
By express enactment of the Legislature, it was provided that these new certificates of stocks should be transferable only at the agency in the city of New York, on books provided for that purpose. When stock was transferred the old certificate was taken up and cancelled, and a new one issued, made payable to the person to whom the transfer was made. These certificates were not payable to bearer, did not pass by delivery from hand to hand, and were not negotiable in the sense of the law merchant. It was expressly intended they should not be. At and before the time of the adjustment spoken of it was claimed by the State that numbers of her bonds, which had been deposited in New York, or hypothecated for small sums of money, and for which the State had received little or no consideration, had been improperly and fraudulently put into circulation. But as they were genuine, made payable to bearer, and the property in them passed by mere delivery, she could not do otherwise than recognize them as valid obligations. These circumstances led to the peculiar provisions in regard to the new stocks. To carry out the new arrangement, printed forms of the certificates of stocks, signed by the Auditor and Treasurer of the State of Indiana, were deposited with the State Agent, in the City of New York, to be by him countersigned and filled up as to dates, amounts, names of parties, and registered in books provided by the State for that purpose, it is not improper to state here that this form and mode of transfer, before being enacted into a law, was submitted to and met the approval of Charles Butler, Esq , the agent and representative of the bondholders, at the time of the adjustment | referred to, as I am informed and believe. Fears were entertained however, that by the fraud or connivance of the State Agent, false certificates, might be issued and frauds perpetrated. Accordingly. the State Legislature, by an act which page: 24[View Page 24] took effect on the 11th day of March, 1859, changed the mode and place of issue of certificates of stock.
By this act it was provided, that thereafter no certificates of stock should be issued by the Agent of State, but that on the presentation to him of certificates of transfer, he should receipt for them, and immediately transmit them to the Auditor of State, at Indianapolis; that the Auditor should cancel them and file them in his office, for preservation and reference, and issue, in the name of the person to whom the transfer was to be made, new certificates of stock, to be signed by him and the Treasurer of State, and after registering them in a book to be provided by the Auditor for that purpose, send them to the Agent of State, to be by him registered and delivered by a proper person, upon presentation of the receipt. The fourth section of this act declares that any certificate of stock issued or transferred in violation of the provision of this act shall be deemed fraudulent and void as against the State of Indiana. It will be perceived that this act throws additional and, in my opinion, abundant safeguards around the issue of the stock. To avoid the dangers and temptations which this change in the law was designed to guard against, as soon as the new law went into operation, the blank certificates, signed by the officers of State, in the hands of the State Agent, should have been promptly withdrawn by the officers of State and destroyed. This was not done.
When Col. Hudson the present State Agent, came into office, early in February, 1861, he found in the office in New York, three bound volumes of the forms, which he immediately cancelled, by punching a hole through the signature of each form.
STOVER FRAUD.
In this connection I invite your attention to the gigantic forgeries of Indiana five per cent, stocks which have been committed in New York.
The Hon. James A. Cravens was elected State Agent in February. 1859. He held the office about nine months, during which time D. C. Stover acted as his clerk. He then resigned, and Mr. Stover was appointed by Gov. Willard, to fill the vacancy. He continued in office under this appointment until February, 1861, when he was succeeded by Col. Hudson, the present incumbent, who had been duly elected by the Legislature. The forged certificates of stock were executed upon the blank forms left in the office of the Agent of State, which had been signed by W. R, Noffsinger as State Treasurer and H. E, Talbott as State Auditor. These gentlemen came into office early in 1855, and went out early in 1857, having served two years. The forgery consisted in falsely filling up the blanks as to dates, names of payees and amounts, and signing the name of James A. Cravens as Agent of State. The forged certificates, so far as I am advised, bear date in March, April and June, 1859, thus purporting to be executed during the period in which Mr. Cravens was State Agent, though I believe they were executed and issued at a latter date. I am informed by Col. Hudson that the forged certificates were all made payable to Samuel Hallett except about $300.000 payable to a person by the name of Deschaux. He further informs me that the whole amount issued, so far as he has been able to discover, is $2,538,000, of which amount $1,295,000 has been retired and destroyed. Col. Hudson states that he discovered the existence of this spurious stock in a few weeks after he came into office, and immediately charged the matter upon Mr. Stover, who confessed it all, but said there was only about $200,000kept secret, he, and those operation with him, would take up and destroy them, so that nobody should loose anything by them Col. Hudson further says, not knowing what might be the liability of the State upon these certificates he deemed it highly important for important for her interest that they should be gotten off the market and destroyed, and, for that purpose, agreed with them, for the time; to communicate the matter to nobody, without, however, giving them any assurance that they should not be ultimately exposed and prosecuted.
The knowledge of this forgery was first communicated to me about the latter part of January last, by Messrs. James M. Ray and Jesse J. Brown, two of the Loan Commissioners, appointed by the State to negotiate her War Loan. They had learned it from Mr. Lanier. of the firm of Wilson, Lanier & Co., who had discovered it in some way about the first of December previous. I immediately repaired to New York, and in company with the Hon. John P. Usher, then the Attorney general of Indiana, and Esq. Jesse J. Brown, endeavored to investigate the affair. In the opinion and confidence entertained by Col Hudson, and some other gentlemen who had been consulted, that Mr. Stover and those acting with him would retire the fraudulent stocks I did not share, and wan not for that or any other reason in favor of delaying their exposure and prosecution a single hour.
Accordingly, I proceeded at once to place all the facts of which I had any knowledge in the possession of Mr Hall the District Attorney prosecuting the pleas of the State, for the city of New York.
The crime had been committed in New York, and to the laws and authorities of that State its punishment belonged.
Mr. Hall, after deliberation, and such investigation as he could make, determine- page: 25[View Page 25] ed that an exposure and prosecution of the parties at that time would be highly inexpedient, and informed me that he took the responsibility of deferring any public disclosure and prosecution until such time as in his judgment it was proper to make them.
Matters thus stood from February until about the 27th day of May, when, learning that the affair had become public in New York, and believing that no reason could exist for further delay in the prosecution, I caused the arrest of Mr. Stover, who was then in this State, and sent him to New York. On his arrest he freely consented to go, and waived all process of formal authority. The Hon. John F. Kibbey, then acting Attorney General, by my direction proceeded to New York, and under the instructions of Mr. Hall, filed a complaint before the Grand Jury, in the name of the State of Indiana, and demanded an investigation.
The Grand Jury returned bills of indictment against Stover and Hallett. At the September term of the Court in which the bills were pending, the Court quashed the indictments against Hallett, on the ground that it was no crime against the laws'of New York to forge certificates or obligations purporting on their face to be executed by the State of Indiana. From this decision Mr. Hail has prosecuted a writ of error to the Court of Appeals, but no decision thereon has been had.
The indictments against Stover are still pending.
When this forgery was first made public, Indiana securities were suddenly depressed in the market from ten to twenty per cent., but soon after rallied to nearly or quite the former rates.
To avoid all embarrassment in the future, which might arise from the existence of the forged Certificates, I recommend that the Auditor of State be authorized to procure a new plate, differing in form and appearance from the old, upon which new certificates shall be printed, and that the holders of all genuine stocks be requested to surrender them and receive instead certificates of the new impression.
JULY INTEREST ON STOCKS.
Many of the Western States, among them Ohio and Illinois, were making provision in New York to pay the interest on their debt, in coin, in order to maintain the credit of their stocks.
As the credit of Indiana had received a shock by the development of forgeries of her stocks, and as the circulation of many of the Free Banks of Indiana was based upon Indiana stocks, it seemed to me especially important that she should take the same course, in order to assure her creditors and the public, that her ability and disposition to pay her debts, were in no wise disturbed or impaired by this assault upon her credit. Accordingly. I instructed Mr. Harvey, Treasurer of State, to provide if he could upon reasonable terms, the coin with which to pay the July interest upon our stocks. This he did. upon the terms and in the manner stated in his report. The announcement of the purpose of the State to pay her interest in coin, had an immediate and salutary effect in restoring confidence and bringing back the value of our stocks to its former standard.
At the time I directed the payment of the July interest in coin, the premium on coin was very small, but has since increased so greatly as to forbid the like arrangement for the January interest.
COMMON SCHOOLS.
The operations of the common school system for the past two years have been quite successful. The amendments made to the School Law at the last regular session, so far as I can learn, have worked well, and met with general approval. The report of Prof. Miles J. Fletcher, Superintendent of Public Instruction, for the year 1861, is laid before you, but the report of the present Superintendent, Samuel L. Rugg, for the year 1862, has not been completed. The Rev. Samuel K. Hoshour was appointed to fill the vacancy occasioned by the death of Mr. Fletcher, who held the office until his successor was duly elector and qualified.
DEARTH OF MILES J. FLETCHER.
The death of Miles J. Fletcher was a misfortune to the State. Possessed of fine talents, highly educated, endowed with every accomplishment that can make a man attractive in society, with a heart full of the warmest affections and most generous impulses, he united with all these an indomitable energy of character that gave no rest, and ever pressed him forward in the path of duty. His industry was a marvel, and the amount of labor he accomplished wonderful. The duties of his office he discharged; not scantily as a task, but with a devotion and pleasure that were satisfied only with a full performance. The cause of education he regarded of the first importance, and the vocation and calling of the educator the most honorable and dignified, next to that of the Christian Minister. The misfortunes of his country deeply afflicted him. and notwithstanding the delight he took in the discharge of his official duties, and his untiring devotion to the education of youth, he would have resigned his office and gone to the field, had be not been dissuaded by his friends, who urged that he could serve his country better in the position he then held. He devoted much time, labor and money to the care of the sick and wounded soldiers. He visited the hospitals and the field of battle to hunt up and minister to the neglected and dy- page: 26[View Page 26] ing, and in carrying a wounded man upon a steamboat at Pittsburgh Landing, shortly after the battle of Shiloh, suffered a bodily injury, from which most likely he could never recover. When he was killed, he had started upon another mission of mercy to the army. I was standing by his side at the moment of his death, and never before did I have brought home to me that passage of Scripture which declares, "That in the midst of life we are in death." Had I been asked a moment before who among all the young men of Indiana, bade fairest for a life of great usefulness and fame. I would have answered, Miles J. Fletcher.
BENEVOLENT INSTITUTION'S.
The Reports of the Boards of Trustees of the Asylum for the Blind Institution for the Deaf and Dumb and Hospital for the Insane are herewith submitted. The management of these Institution for the past two years has been eminently successful and satisfactory. The Superintendents have displayed ability and fidelity, as well as the subordinate officers and teachers, and I commend the reports to your especial consideration and the Institutions to your fostering care and attention.
PRISONS OF THE NORTH AND SOUTH.
At the regular session of the Legislature in 1861, the sum of 10,000 dollars was appropriated for the purchase of material; and construction of the Northern Prison located at Michigan City, for the year 1861, and a like sum for the year 1862. At the extra session in 1861, the sum of 30,000 dollars was appropriated for materials and construction of the Northern Prison, and for the support of convicts, and the payment of the expenses incurred for the month of January, 1861.
At the same session a law was passed for the transfer or 200 convicts from the Southern Prison, but not provision was made for their return in case their labor should be required. At the same session an act was passed providing that persons sent to the penitentiary from counties north of the National Road should be confined in the Northern Prison. The work in the construction of the Prison was vigorously pressed in the summer and fall of 1861, and it was found necessary by the Board of Directors, in order to keep convict labor e ployed, to anticipate, and draw upon the appropriation made for the construction of the prison in 1862; so that when the work for the year 1861 was closed up, there remained unexpended of the fund appropriated for the construction of the in 1862, but about 3,000 dollars. It was apparent, then, that the labor of the convicts could not be employed in the construction of the prison during the year 1862, for the want of means with which to purchase the necessary materials. The labor of the convicts could not be leased or hired out to contractors for the want of shops in the prison in which they could be employed. To work the convicts out of the prison and about the town, would be so expensive, in the employment of guards, as to make their labor unprofitable, beside there was no authority for doing so, except as connected with the construction of the Prison.
As the matter stood, it was inevitable that the convict labor should be almost wholly unemployed throughout the year 1802, and must so continue until the prison shops were constructed, when the labor might be hired to contractors as in other prisons. If the shops were constructed in 1862, this labor could be made remunerative through the year 1863, but if not constructed until 1863, this could not happen until 1864. It was evident that the State would sustain a great loss by the delay in the construction of the shops and accordingly the Board of Directors convened in this city in February last, and myself and other State officers invited to be present for consultation; and after full consideration of the subject it was believed by all to be clearly to the interest of the State that the work of construction of the shops should be commenced at the earliest moment, provided the contract could be let at fair prices, and the contract, bring fully advised of the condition of affairs, should be willing to await the action of the Legislature for his pay. The Board of Directors then proceeded to advertise for proposals for the work, and a public letting was had. I directed Mr. John B. Stumph, of this city reputed to be an honest and capable builder, to be present at the letting, and see that contract was properly made, and in accordance with the plans and specifications before that time adopted by the State for the construction of the shops. The contract upon terms highly favorable to the State. This business is a proper subject for Legislative investigation, which I hope will be promptly made and that means will be speedily provided to pay the contractor the amount which shall be found to be honestly due.
The report of the Board of Directors, together with that of the Warden and Sea- page: 27[View Page 27] superintendent, are herewith the general administration of the of the prison have been satisfactory, and the Hoard of Directors have manifested much zeal and ability in the discharge of the important duties instructed to them.
The report of the Board of Directors and Warden of the Southern Prison, at Jeffersonville, to herewith submitted. The affairs of this prison, I believe, have been well managed, and I know of no just grounds for complaint. I recommend how-ever, that the management, condition and wants of both Prisons, receive the early and thorough consideration of the Legislature.
UNITED STATES ARSENAL AND ARMORY.
At the last session of Congress an act was passed appropriating $100,000 for the purchase of grounds and construction of buildings and necessary machinery for an Arsenal and Armory to be located in this city.
The grounds have been purchased and the construction of the buildings will be commenced as soon as the Legislature shall have relinquished the jurisdiction over such grounds, so far as required by the laws of the United States.
CONGRESSIONAL DONATION.
On the 2d day of July, 1862, the Congress of the United States passed an act donating to each of the States not in rebellion against the Government, an a-mount of public lands equal to 30,000 acres for each Senator and Representative in Congress to which the States are respectively entitled by the approportionment Indiana to 390,000 acres. Whenever there are public lands in the State, subject to sale at private entry at $1 25 per acre, the quantity to which the State is entitled shall be selected from such lands, but if there are no such lands in the State, or not enough, the Secretary of the Interior is to issue to the State land scrip for the requisite number of acres This scrip cannot be located by the State to which it is issued, but must be sold; but the purchaser may locate it upon any of the unappropriated lands of the United States subject to sale at private entry at $1,25 or less per acre.
There being no public lands in this State for sale at private entry, held by Government at 1.25 per acre. Indiana is entitled to receive her donation in scrip.
This donation is made up on the following conditions:
- --That all moneys derived from the sale of lands or script shall be invested in stocks of United States, or of the States, or some other safe stocks yielding not less than five per centum per annum, on the par value.
- --that no monies so invested shall constitute a perpetual fund, the capital of which shall never be diminished, except as hereinafter stated.
- --The interested on the stocks to be inviolably appropriated by the State, to the endowment and support of at least one College in which the leading object shall be, without excluding scientific and other classical studies, and including Military Tactics, to teach such branches of learning as are related to Agriculture and the Mechanic arts.
- --If any portion of the fund thus invested shall, by any contingency be lost, it shall be fully restored by the State.
- --That no portion of the said fund shall be applied to the purchase, repair, or erection of any building, but that a sum not exceeding ten per cent. of the original amount may be expended for the purchase of sites or experiment farms.
- --No State shall be entitled to the donation, unless the Legislature shall express its acceptance thereof, within tow years from the date of the approval of the Act by the President.
I recommend that the Legislature promptly express its acceptance of the grant, pledging the faith of the State for the performance of the conditions upon which it is made.
The necessity for scientific instruction in agriculture is generally acknowledged, and Congress intended by this magnificent donation to provide means for the permanent establishment of at least one efficient Agricultural College in each State.
The question presents itself as to the disposition which shall be made of the grant. Shall it be given to the State University, or apportioned among all the Colleges in the State, upon such terms and conditions as the Legislature may prescribe; or shall a new institution be created expressly designed to carry out the will of Congress? It may be difficult now to determine the question upon the fact that we cannot know how much may be realized from the sale of scrip. If an amount should be realized large enough to endow respectable and successful Professorships in each of the Colleges now in the State, attaching to them experiment farms, it would perhaps be the best disposition of it that could be made. But if it should not be large for such division, which I apprehend will be the case, then I recommend that it be applied to the establishment of an Institution for Agricultural and Military instruction, to which the children of soldiers who shall die in the service during this war, shall be admitted free of charge.
OLIVER P. MORTON.
OLIVER P.
MORTON.
January 9th, 1863.
