THE BREVIER LEGISLATIVE REPORT.
TWELFTH VOLUME.
INDIANA LEGISLATURE.
IN SENATE.
FRIDAY, January 13, 1871.The Senate met at 2 o'clock P. M.--the LIEUT. GOVERNOR in the Chair.
The LIEUT. GOVERNOR announced that, in accordance with an arrangement made with the Young Men's Christian Association for free Chaplain service, the Rev. Thomas H. Lynch, of the M. E. Church, would open the session with prayer.
Dr. Lynch prays.
On motion of Mr. MARTINDALE, the reading of the Secretary's minutes of yesterday's proceedings was dispensed with.
LEGISLATIVE EXPENSES.
On motion by Mr. SCOTT, the regular order of business was dispensed with, and the bill [H. R. 32] for an appropriation of $100, 000 for the expenses of the present session of the General Assembly was read; the constitutional provision was suspended by yeas and nays, the bill was read the second time by title, and again the third time, and finally passed by yeas 42, nays none.
SESSION HOURS.
Mr. BROWN, by leave, offered a resolution that when the Senate adjourn it adjourns till Monday at 2 o'clock P. M.
Mr. WILLIAMS offered a substitute,which was accepted by Mr. Brown, as follows:
Resolved, That when the Senate adjourn, it adjourr s to meet to-morrow at nine o'clock, for the purpose of introducing bills, reading bills a second time and referring to committees, and that no other business shall be in order during the day.
The substitute was agreed to.
WABASH AND ERIE CANAL.
The Senate proceeded to the consideration of the concurrent resolution of Mr. Brown and the joint resolutions of Mr. Caven on the subject of the Wabash and Erie Canal.
Mr. GREEN, in reply to Mr. Brown, of Jackson, said that it was the first time in his life he had to answer a printed and well matured speech, and that he must give the gentleman credit for his energy and ability in preparing his argument. Much had been said by the gentleman which he could heartily endorse (as well as part of his resolutions) and he felt no disposition to speak of what he approved. Mr. G., by way of introduction, referred to the old Whig party. This B.R. -6touched a tender spot. As he had been born and raised in that church, he thought he knew something of its doings.
He denies the assertion that the internal improvement system was brought about by the old Whig party. Prior to the internal improvement system, the public deposits of the government have been snatched by the execution of the United States from the Bank of the United States,which was an arbitrary reach of executive power, such as had never been exercised before nor since; and the public deposits distributed to about nine States--Indiana being one of them. Thereupon the Bank of the State came into existance, and the word was to discount freely. These banks were called pet banks.
The Democrats were not content with one bank, and not only allowed the State to become a monopoly but granted to all her citizens the same privilege. The result was banks sprung up all over the State. In every town and hamlet, nearly, a bank sprung up, and a fever of speculation sprung up. The internal fever spread over all the country.
In 1836 we went into the great system of internal improvements, to the amount of $10,000,000. Things moved rapidly until pay day overtook us, then came the crisis, and the State and her citizens financially failed.
From 1841 to 1846 the State failed to make any arrangements for the payment of the interest on her debt. The creditors became alarmed and set on foot the arrangement which was afterwards consumated in what is known as the Butler bills, in 1846-7. By this compromise we are willing to stand. This compromise provides that the old internal improvement bonds should be surrendered and new ones issued, as has been well said. Under this compromise all the old internal improvement bonds were surrendered except 353 bonds of $1,000 each8 have since been surrendered under this compromise. The General Government, at a time when our bonds were at a premium, purchased 211 of these bonds.
The State made no arrangement to pay his or any other internal improvement bond. These bonds had been purchased for the purpose of securing to certain Indian tribes the annuities promised them.
page: 82[View Page 82]The bonds were held on to by the United States.
We had a fund coming to us called the three per cent. fund a fund the farmers of the several counties were anxious every year to receive for road purposes. This fund by the General Government was withheld from the State and applied upon the interest due on our bonds. Governor Wright, and all the Democratic Governors of the State acquiesced in this. This sum amounted to over $108,000.
The great rebellion came on us, of which I decline to speak now, and we incurred a war debt. In the settlement of this claim the United States was not unmindful of our indebtedness to her, and took the precaution by her officers to file caveats in the proper offices, notifying these offices not to pay unless our indebtedness was taken into the account.
The State had, by act of legislation, authorized the Executive of this State to settle with the United States. There was due this State a large amount, on what is called the War claims. An agent was sent here to settle with the Executive of this State, and with the money due us came these bonds of Indiana.
The Governor made the settlement, and in this settlement took up 141 of these bonds and paid the interest on the other 70 not yet due, as I understand it. The Governor received over one half million of dollars in money and the paid bonds, and coupons of the other bonds amounting to over $40,000.
The Governor is charged with fraud that he did this in violation of law. How is this? Let us look at it. The Government owed us, and we owed the Government. What is the rule of equity, or what is the law between individuals in such cases? And is it not the same between States and Governments? He could see no difference. The set off was due and should be so set off, according to all rules of equity or law. The United States refused to pay any money to us unless we admitted the set off. We needed the money and have ratified that part of the transaction, for we have taken the money and used it.
His Excellency the Governor had no doubt of the equity, if not the legal liability of the State. The three per cent. fund had been retained and applied on the interest of the bonds.
Further, the eight bonds held by the Sinking Fund for school purposes had been, by act of the General Assembly, in substance, paid by the State, amounting to $10,000 interest, in all over $18,000. It is contended the Governor's act is in violation of the acts of 1846 and '47. If so, was not the payment or settlement of the eight school bonds in violation of said acts? He was unable to see the distinction. It is true the Butler bills prohibits the State from making provision for the payment of the old internal improvement bonds, but the Senator from Jackson [Mr. Brown] is too good a lawyer to contend that this provision would operate upon outsiders who refused to come into the arrangement. The only objects he could see in this provision are the creditor did not want us to make provision for these bonds for fear it might weaken the State to pay them. On the part of the State it distance. That the State is liable for these outstanding bonds, he continued, I have no doubt, and, sir, if I were going to have my speech published, I would make the opinion of the learned counsel, Messrs. Hendricks, Hord and Hendricks, a part of my speech.
The Governor has acted in good faith, and done what was for the best interests of the State, and under the law governing such cases, and he should be sustained.
The purchase of the Wabash and Erie Canal no one is in favor of, nor could it be done under our constitution. This is not what the bondholders are after. They are not putting up the canal for sale to the highest bidder. They wish to rescind the contract, or, under the Butler Bills, have the State to redeem it, under the reserved right to redeem after' twenty years.
This redemption the country is opposed to, and I am for settling this question by an amendment to our Constitution. I have no sympathy with these bond-holders. They besieged us when Indiana was but a youth and took advantage of our infancy. Stimulated as we were at the time, they took advantage of the circumstances and induced us to contract larger debts than we were likely ever to be able to pay; but we settled fair with them and have fully complied with the contract on our part, and this is more than they have done. They were to complete the canal to Evansville in four years. This they have never done. It is said they dug a ditch through, but soon let it fill up.
Mr. CAVEN followed in support of his joint resolution.
These speeches will appear in full in the Appendix to the BREVIER LEGISLATIVE REPORTS
Mr. HUGHES moved to amend the first resolution by striking out all after the word "resolved" and inserting the following:
That it is inexpedient to take any legislative action on the subject of the resumption by the State of the Wabash and Erie Canal, excepting for the purpose of submitting the matter in some appropriate form to the people of the State, and to protect the canal from sale, and its revenues from sequestration.
Amend the second resolution by striking out at the end thereof, the words "and meets the disapproval of the General Assembly, etc.," and inserting the following:
And it is hereby declared that the Governor holds said bonds in trust for the State, and subject to the provisions of said laws, and that he is hereby authorized to surrender the same under the provisions of said laws and to take and receive for the benefit of the State, the stock or bonds to the amount of the one-half provided for in said laws, and required to report his proceedings in the premises to the General Assembly.
page: 83[View Page 83]Amend the third resolution by striking out the word "no" in the third line of the printed copy thereof, between the words "make" and "provision;" and by striking out the word "or" in the fourth line, and inserting in its place the word "and," and by striking out all after the word "bonds," so that said third resolution will read as follows:
Resolved, By the Senate, the House of Representatives concurring, that this General Assembly of the State of Indiana will make provision for the payment of the principal and interest of the old internal improvement bonds.
Mr. BROWN moved to make the whole subject the special order in Committee of the Whole for Tuesday, at 2 o'clock P. M.
Mr. MARTINDALE demanded a division of the question--first on Mr. Brown's resolution and Mr. Hughes' amendment.
This division of the question was agreed to.
Mr. MARTINDALE suggested the reference of the resolution for a constitutional amendment, introduced by Mr. Caven, to a standing committee.
Mr. BROWN and Mr. HUGHES thought the joint resolution for a constitutional amendment should go with the concurrent resolution submitted by Mr. Brown.
Mr. MARTINDALE regarded the questions covered by the two resolutions as distinct.
Mr. WILLIAMS would like to see the proposition of Mr. Caven made the order for Wednesday; but did not press the motion in deference to an appeal by Mr. Brown.
The resolution of Mr. Caven was made the special order for Tuesday at 2 o'clockthe same hour set for the consideration of Mr. Brown's resolution.
MORGAN RAID CLAIMS.
Mr. ANDREWS, by leave, introduced a bill [S. 43,] making an appropoiation of $413,599 58 for the payment of claims of sufferers by the Morgan raid, which was read the first time and passed to the second reading.
WABASH AND ERIE CANAL.
Mr. HUGHES submitted the following:
Resolved, That Hon. Stearns Fisher, of Wabash, county, be, and he is hereby appointed a special clerk under the Secretary of the Senate, to assist the appropriate committee having charge of the subject of claims against the State, arising out of and connected with the Wabash and Erie Canal, and the settlement of the funded debt of the State in their investigations.
Mr. MARTINDALE did not want to cast a vote that would indicate any seriousness in the matter of this claim.
Mr. HUGHES would have voted with the Senator had he made a motion when the matter first came up, to lay the memorial from the bond holders on the table, and would now vote to discharge the committee from the consideration of the subject, and for tabling it.
Mr. MARTINDALE thought it not necessary to expend time and money on something that will amount to nothing, for the people have made up their mind that there is nothing of equity in the claims presented. If the Senator asks for a general clerk to the committee he would have no objection.
Mr HUGHES ventured the suggestion that not three Senators could say at what period the State ceased to pay interest on the old claims, and but few knew that some of the bonds had fifty years to run. The committee can not investigate the canal question and do any other work of importance this winter. He desired the Senate to relieve the committee of that work or give them facilities for doing it in the most expeditious and satisfactory manner.
Mr. BROWN said when this memorial first came in he desired it laid on the table; and if the Senator will withdraw his resolution, he would make the preliminary motions now.
Mr. HUGHES withdrew his resolution.
Mr. BROWN thereupon moved to discharge the committee from the further consideration of the memorial.
Mr. GREEN and Mr. HAMILTON thought a question that created so much anxiety among the people ought not to be dodged in this way. The latter Senator was of opinion that we owed no debt on this score, but nevertheless he desired to give the committee every facility they may ask for its consideration.
The motion was agreed to, and so the committee was discharged from the further consideration of the memorial.
The memorial was then made the special order for Tuesday next, at 2 o'clock P. M.
ABSENCE.
Leaves of absence were granted to Mr. case indefinitely, on account of sickness; and to Mr. Alsop till Thursday.
BILLS ON THE SECOND READING.
The following described bills were read by title only, and severally referred to appropriate committees.
Mr. Bradley's [S. 1,] to legalize bonds of cities issued to aid in the construction of water works.
Mr. Johnston's [S. 2,] to prevent hunting or shooting within enclosure without the consent of the owner thereof.
Mr. Martindale's [S. 3,] to regulate the fees of certain officers therein named, (all State and county officers.)
Mr. Henderson's [S. 4,] prescribing certain duties of clerks, auditors, sheriffs and treasurers of the several counties of this State.
Mr. Bradley's [S. 5,] to enable married women to join with their husbands in executing contracts for conveyance of his real estate.
Mr. Green's [S. 6,] fixing specific salaries for county officers, etc.
Mr. Hadley's [S. 7,] providing for publication of certain business of Boards of Commissioners.
Mr. Martindale's [S. No. 8], to amend certain sections of the Divorce act.
Mr. Wood's [S. No. 9], regulating interest on money.
Mr. Gregg's [S. No. 10], to repeal certain page: 84[View Page 84] sections of an act in regard to the duties and compensation of State Agent.
Mr. Johnson's [S. No. 11], in relation to draining wet lands.
Mr. Cave's [S. No. 12], amending the School law.
Mr. Beardley's [S. No. 13], to establish rate of interest on judgments and claims, etc.
Mr. Hubbard's [S. No. 14], to encourage manufacturing.
Mr. Johnson's [S. No. 15], to authorize the construction of plank roads, etc.
Mr. Hess' [S. No. 16], to amend an act authorizing cities and towns to issue bonds to erect and complete school buildings, etc.
Mr. Williams' [S; No. 17], to regulate and make uniform rates of railroads, etc.
Mr. Carnahan's [S. 18] relating to fees of County Recorders.
Mr. Brown's [S. 19] to provide for the relocation of county seats.
Mr. Hubbard's [S. 20] legalizing appropriations for bridges.
Mr. Martindale's [S. 21] to amend an act defining felonies, etc.
Mr. Dittemore's [S. 22] to fix the time for holding the Circuit Court in the Sixth Judicial Circuit.
Mr. Lasalle's [S. 23] to constitute the Twenty-fifth Common Pleas Judicial District.
Mr. Beeson's [S. 24] authorizing plank, gravel and McAdamized road companies to levy a tax in their respective districts.
Mr. Green's [S. 26] to amend sections 1, 3, 4, 6, 9, 11 and 12 of the act of March 11, 1867, for the reclamation of wet and undrained lands.
Mr. Dwiggins [S. 27] to amend section 530 of the practice act.
Mr. Bradley's [S. 28] to amend the act organizing the Supreme Court--for creating an additional Judge.
Mr. Beardsley's [S. 30], supplemental to the act enabling the improvement, by incorporated towns, of streets, alleys, etc., approved April 27, 1860.
Mr. Gray's [S. 31], to provide for the payment of certain stocks and bonds of Indiana therein mentioned.
Mr. Glessner's [S. 32], to fix the time of holding the Circuit Court in 28th Judicial Circuit; it gives Shelby county an eight weeks' term, Bartholomew nine and six, Johnson four and Brown one.
Mr. Wadge's [S. 33], to repeal the act to authorize and encourage the construction of levees and drains, and for the reclamation of wet lands, which took effect without executive approval, May 22, 1869.
Mr. Morgan's [S. 34], to amend the act amending the 40th clause of section 30 of the Evansville city charter.
Mr. Steele's [S. 36], to amend section 207 of the practice act.
Mr. Denbo's, [No. S. 36], prescribing the duties of County Auditors in the matter of making out delinquent lists and prescribing compensation for publishing the same.
Mr. Bradley's, [8. 37], to amend an act districting the State for the election of Judges of the Supreme Court and creating the Fifth District.
Mr. Martindale's, [S. 38], to amend the act to exempt property from tax in certain cases, approved February 1, 1852.
Mr. Wiiliams's, [S. 39], amendatory of act an accepting the provisions of the act of Congress March 6, 1865, making an appropriation in aid of the Agricultural Colleges, and providing for an increase of trustees of the Purdue University, by adding four members of the State Board of Agriculture, to be appointed by the Governor on the recommendation of the State Board of Agriculture.
Mr. Martindale's, [S 40], to amend the 34, 37, 39, and other sections of the common school law of March 6, 1865, and adding supplemental sections thereto.
Mr. Martindale's, [S 41], to amend the 5, 6, 7, 16, 17, 35, 110, and other sections of the common school law of March 16, 1865.
PASSED THE SECOND READING.
Mr. Fuller's bill [S. 25] regulating the terms of the Circuit Court in the Fifteenth Judicial Circuit, and--
Mr. Bird's bill [S. 29] to provide for holding, by Roman Catholic churches, cemeteries, colleges and other property.
Were severally ordered engrossed for the third reading.
On motion by Mr. BRADLEY, it was--
Ordered that the Committee on Education be authorized to employ a clerk.
NEW PROPOSITIONS.
Mr. DWIGGINS by leave introduced a bill [S. 44] to legalize the sale of seminary lands in Jasper county to Marion L. Spitler and Margaret Stackhouse.
Mr. CARNAHAN, by leave, introduced a bill, [S. 45,] dividing the State into five Supreme Court districts, and to provide for the election of a judge in the fifth district.
These bills were read the first time and passed to a second reading.
Mr. C. made an ineffectual motion--yeas 28, nays 18--two-thirds not voting in the affirmative--for a dispensation of the Constitutional restriction in order that this bill may be read the second time by title and referred to the appropriate committee.
On motion by Mr. HUGHES it was
Ordered, That the Judiciary Committee be empowered to employ one clerk and one messenger.
Mr. DENBO offered a resolution, allowing Mr. A. Jaquess five days pay and mileage for services as Secretary in the organization of the Senate.
On motion of Mr. HUGHES, Mr. W. A. Bonham was included in the resolution, on account of similar service.
Mr. FULLER moved to strike out "five days" and insert "one day."
Mr. BRADLEY moved to further amend by substituting "three" days" for "one day."
On motion of Mr. DENBO, and by consent, the whole matter was referred to the Committee on Claims.
And then--
The Senate adjourned till 9 o'clock A. M. to-morrow.
