THE
BREVIER LEGISLATIVE REPORTS
THIRTEENTH VOLUME.
INDIANA LEGISLATURE.
IN SENATE.
SATURDAY, December 7, 1872.President Friedley took the chair at ten o'clock.
A message from the House announced the passage of a resolution in relation to Indiana's two per cent. claims, and a resolution in relation to the improvement of the Wabash river; also the following bills: H. R. 6, creating Indiana Centennial Commission; H. R. 36, to amend charter of Franklin Insurance Company; H. R. 59, to amend supervisor's act; H. R. 139, in relation to change of venue and costs therein; H. R. 146, in relation to earnings of railroads; H. R. 155, a city common school law; S. 8, Twenty-fifth Common Pleas Court bill; S. 38, for Governor'shouse rent, $5,000 a year; S. 124, for Governor's salary, $8,000 a year.
PETITIONS.
Mr. SCOTT presented a communication from the President of the Indianapolis and Terre Haute Railroad Company in reference to the alleged claim of the State for surplus profits, in accordance with the provisions of the charter. He asked that it be read, and moved for the printing of 200 copies.
Objection being made to its reading, Mr. S. waived that request.
Mr. SLEETH considered it unnecessary to print this petition till the Railroad Committee shall be through with the investigation.
The motion to print was then discussed for some time and finally agreed to.
It is as follows:
To the Senate and House of Representatives of the State of Indiana:
The President of the Terre Haute and Indianapolis Railroad Company submits to your honorable bodies the following communication:
There seems to be an impression among many citizens of the State that this company is indebted to the Common School Fund in a large sum of money, under the twenty-third section of its charter, which provides : That when the dividends declared shall amount to a sum equal to the capital invested, and ten per centum por annum thereon, the Legislature may so regulate the tolls of the road that but fifteen per cent. of its earnings shall be divided, and the residue over a contingent fund shall be paid to the school fund, etc.
Passing by the question (which is reserved), whether this company can under said section twenty-three be required to pay anything to the school fund, without precedent legislation regulating the tolls and declaring the dividends equal to the investment and interest, the following statement is submitted in regard to the capital invested and dividends declared by the company :
The whole amount of capital invested in said railroad company is one million three hundred and ninety thousand nine hundred and sixty-seven dollars and fifty cents.
The work was commenced in 1849 and cars were running on the road in 1852. A portion of the money was expended after the last date, much of it before.
Taking the year 1852 then as a point at which to make an average calculation of interest, we have twenty years interest to add to investment, with this result, viz:
| Amount of capital invested.................... | $1,390,967 50 |
| Interest of 20 years at 10 per cent.......... | 2,781,935 00 |
| Capital invested and interest.................. | $4,172,902 50 |
| The actual cash dividends paid to stockholders is........................... | 3,475,752 23 |
| Excess of investment and interest over dividends is .......................................... | $697,150 27 |
The amount here given as capital invested is not what the road cost, but is greatly less; it is what the road actually cost the stockholders independent of the earnings of the road.
page: 202[View Page 202]The entire coat of the road is $1,988,150 00. Of this amount tbe sum of $597,182 50 was paid out of the earnings of the road, and for that sum dividends in stock were issued to the stockholders, making the capital stock thus equal to the cost of the road. The amount of stock, however, is not material; it is the capital invested with interest, which must be paid to the stockholders out of the earnings of the road, before anything can accrue to the school fund.
A tabular statement is hereto attached, showing the amount of dividends which have been paid each year, semi-annnally and the aggregate thereof. It will be seen by the foregoing statement that the dividends so far declared and paid do not equal the amount of capital invested and ten per cent, interest per annum thereon by several hundred thousand dollars, and that therefore nothing can be due from the company to the school fund.
The calculation of interest on the investment, as will be seen, is only averaged ; but a minute calculation can not materially vary the result.
It has been insisted, however, that this company was carrying an unreasonable surplus contingent fund in order to avoid declaring dividends, and the manner of making up the annual reports of the company heretofore gives color to this idea. For instance, in the last annual report, the surplus fund is stated to be more than one million of dollars, a copy of which is hereto attached, marked "Q ;" whereas, in fact, that fund was but little over two hundred thousand dollars, as will appear by attached statement, marked "X," and it mostly consists of assets that are not at present available without sacrifice.
The capital invested by the company as herein stated, is based on the amount expended on the cost of building the road from Indianapolis to Terre Haute, the whole cost between those points being as stated, $1,988,150 00.
Up to 1869 the road extended no further west than Terre Haute, the company having, previous to that time, a running arrangement with other railroads to St. Louis. At this time a company was organized, under the laws of this State, to build another railroad from Terre Haute to Indianapolis (which has since been built), which company had a lease for ninety-nine years on the St. Louis, Alton and Terre Haute Railroad, the only road then running west from Terre Haute. It thus became necessary for this company to get a connection with St. Louis, or become a mere local road, and lose a great amount of its business. The company, therefore, extended its road west to the State Line, at a cost of $449,860 71, which makes part of the surplus fund reported--that sum not being on hand at all, but having been paid out to build the road to the State Line. It also became necessary for this company to assist the St. Louis, Vandalia and Terre Haute Railroad Company to build its road from the State Line to St. Louis; and this company, to that end, paid the sum of $265,000 for stock in said railroad company, which stock is not worth over $45,000, and to purchase $328,500 worth of the mortgage bonds of said company. These bonds are not at present saleable, but are worth about what they cost. It is believed that this was a good investment for this company, even if the stock should prove to be worthless, and a loss of twenty per cent, on the bonds should occur, as it was absolutely necessary to get the western connection, and it could have been had in no other way. The bonds, stocks and accounts of the other railroad companies held by this company, and going to make up the surplus fund, were obtained in helping said companies construct their roads to make northern and southern connections with the road of this company, and the money was well invested if the whole amount should be lost.
It will be seen by statement "Q" that the company owes eight hundred thousand dollars, and owns five hundred and twenty-two thousand and nine hundred dollars of its own stock. This stock was purchased at its full value to prevent parties getting a controlling interest in the road, who, it was believed, would have mismanaged it for their own profit. There was no speculation in the transaction, nor any design to defraud the school fund.
With this explanation of what, at first blush, seems an excessive surplus fund, it is submitted that in no view of the question does the company owe the school fund anything.
This company has been advised that it could not be called upon to pay over anything under the twenty-third section of its charter, until the Legislature had first taken action to regulate the tolls Nevertheless this company now is, and always has been, willing to make a full exhibit of all its financial proceedings, and if, upon a fair accounting, anything is found due the school fund, to make no technical objections to its payment.
The officers of the company now believe, and have always thought, there is nothing due; and if anything can be found due, and their calculations are wrong, the error, if any, is based on mistake, and does not proceed from design.
The Superintendent of Public Instruction, who has the care of the school fund, has been invited to examine the books of the corporation, and to make his own calculations ; and a like invitation is hereby extended to any officer or committee appointed by the Legislature for that purpose, and the undersigned will furnish the Legislature or any committee thereof any further information required on the subject.
A suit has been instituted against the company is the Putnam Circuit Court, by the Prosecuting Attorney of that circuit, under said twenty-third section, not to recover the amount of money supposed to be due the school fund, but to forfeit the franchise of the company for a supposed failure to pay over money to said fund. This proceeding at a distance from the main office of the company, which is located in Terre Haute, is very inconvenient to the company, is harsher in its nature, and is one to which the company may be subjected any time at the will of any prosecuting attorney along its line.
Believing the State cannot desire the forfeiture of the franchises of this great corporation, nor want anything more from it than the money thought to be due the school fund, the undersigned asks your honorable bodies for such action or legislation as may reach a judicial determination whether anything is due said fund without disturbing its franchises. The company will consent, for that purpose, to appear to any action brought to recover the money, and will interpose no obstacle to a full and fair investigation of that question; and he asks that the quo warranto proceedgins may be discontinued.
W. K. McKeen,
President.
TERRE HAUTE, IND.,
December 5, 1872.
The following stctement shows the amount of dividends paid in cash from December, 1852, to December, 1871, and when made, and the rate per cent :
| December, 1852, 4 per cent............... | $25,294 24 |
| June, 1853, 3 per cent............... | 25,710 49 |
| December, 1853, 4 per cent............... | 29,546 00 |
| June, 1854, 5 per cent............... | 44,655 00 |
| December, 1854, 5 per cent............... | 46,205 00 |
| June, 1855, 5 per cent............... | 47,440 00 |
| December, 1855, 5 per cent............... | 48,740 00 |
| June, 1856, 5 per cent............... | 49,542 50 |
| December, 1856, 7 per cent............... | 75,799 50 |
| June, 1857, 6 per cent............... | 81,687 00 |
| December, 1857, 6 per cent............... | 81,687 00 |
| June, 1858, 5 per cent............... | 68,822 50 |
| December, 1858, 5 per cent............... | 68,822 50 |
| June, 1859, 5 percent............... | 68,822 50 |
| December, 1859, 5 per cent............... | 69,072 50 |
| June, 1860, 5 per cent............... | 69,072 50 |
| December, 1860, 5 per cent............... | 69,072 50 |
| June, 1861, 5 per cent............... | 69,072 50 |
| December, 1851, 5 per cent............... | 69,072 50 |
| June, 1862, 5 per cent............... | 69,222 50 |
| December, 1862, 7 per cent............... | 100,831 50 |
| June, 1863, 6 per cent............... | 89,487 00 |
| December, 1863, 7 percent............... | 106,221 50 |
| June, 1864, 6 per cent............... | 114,009 00 |
| December, 1864, 10 per cent............... | 190,015 00 |
| June, 1865, 6 percent............... | 115,209 00 |
| December, 1865, 6 per cent............... | 115,689 00 |
| June, 1866, 6 per cent............... | 115,989 00 |
| December, 1866, 6 per cent............... | 118.989 00 |
| June, 1867, 6 per cent............... | 118,989 00 |
| December, 1867, 8 per cent............... | 158,652 00 |
| June, 1868, 6 per cent............... | 119,289 00 |
| December, 1868, 6 per cent............... | 119,289 00 |
| June, 1869, 6 per cent............... | 119,289 00 |
| December, 1869, 6 per cent............... | 119,289 00 |
| June, 1870, 6 per cent............... | 119,289 00 |
| December, 1870, 6 per cent............... | 119,289 00 |
| June, 1871, 6 per cent............... | 119,280 00 |
| December, 1871, 6 per cent............... | 119,289 00 |
| Total amount cash dividend............... | $3,475,752 23 |
Exhibit "Q." Terre Haute and Indianapolis Railroad Company, statement No. 3.--Ledger balance.
RESOURCES.
| Construction account............... | $1,962,509 22 | |
| Depot and tracks, Indianapolis............... | 25,640 78 | |
| -------- | $1,988,150 00 | |
| Extension to Illinois State line............... | $449,860 71 | |
| Double track............... | 25,075 35 | |
| Equipment............... | 138,139 83 | |
| -------- | 613,075 89 | |
| Evansville and Crawfordsville Railroad stock............... | 13,740 48 | |
| Evansville and Crawfordsville Railroad extension bonds............... | 79,125 00 | |
| Evansville, Terre Haute and Chicago Railway account............... | 30,982 16 | |
| Evansville City bonds............... | 42,500 00 | |
| Chauncy Rose, Trustee, T. H. & I. R. R. stock, 6,972 shares, at $75 per share............... | 522,900 00 | |
| St. Louis, Vandalia and Terre Haute Railroad bonds............... | 328,500 00 | |
| St. Louis, Vandalia and Terre Haute Railroad stock............... | 265,000 00 | |
| Union Star Line stock............... | 2,500 00 | |
| United States mail service............... | 2,433 33 | |
| Bills receivable............... | 4,912 22 | |
| Farmers' Loan and Trust Company............... | 6,200 75 | |
| Real estate............... | 2,555 00 | |
| Open accounts............... | 57,133 88 | |
| Treasurer............... | 161,860 72 | |
| Total............... | $4,121,569 43 | |
| LIABILITIES. | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Capital stock............... | $1,988,150 00 | ||||||||||||||||||
| Bond account............... | 800,000 00 | ||||||||||||||||||
| Bills payable............... | 66,250 00 | ||||||||||||||||||
| Unclaimed dividends............... | 6,762 00 | ||||||||||||||||||
| Coupons unpaid............... | 2,150 75 | ||||||||||||||||||
| December dividend, 6 per cent., and goverment tax............... | 122,347 69 | ||||||||||||||||||
| Surplus account............... | 1,135,908 99 | ||||||||||||||||||
| Total............... | $4,121,569 43 | ||||||||||||||||||
Exhibit "X." Explanation of surplus fund, as stated in exhibit "Q."
| The surplus accouut is stated to be............... | $1,135,908 39 |
But of this amount there is to be deducted amounts paid as follows:
| Extension of road to State line............... | $449,860 71 | |
| For double track............... | 25,075 35 | |
| For equipment............... | 138,139 83 | |
| St. Louis and Vandalia stock is estimated at $265,000, and is only worth $45,000, the difference is............... | 220,000 00 | |
| Real estate............... | 2,555 00 | |
| Evansville and Chicago Railrway stock, estimated at $30,982, is worth only 50 per cent.; difference............... | 15,491 00 | |
| -------------- | 851,121 89 | |
| -------------- | ||
| Actual surplus............... | $284,782 10 | |
| In the estimate "Q" it will be seen that there was in the treasury, in cash, but............... | $161,860 72 |
| Of this there was required to pay dividends and taxes at once............... | 122,347 69 |
| Leaving a cash surplus of only............... | $39,513 03 |
The residue of surplus being in assets not at present available.
DRAINAGE LAWS.
Mr. HUBBARD, from the Committee on Corporations, returned the bill [S. 88] to encourage the construction of levees, dykes and drains, with amendments.
Mr. BROWN moved to make the report and bill the special order for Tuesday afternoon at two o'clock, when similar bills are to be considered.
After debate a vote was taken on concurrence, and decided in the negative.
The report and the bill were then made the special order for Tuesday at two o'clock p. m
REPORTS FROM COMMITTEES.
Mr. HUBBARD, from the Committee on Corporations returned the bill [S. 27] to legalize certain acts of corporations under the act of May 12, 1852, and supplemental acts for the incorporation of plank, gravel and other roads, with amendments.
The report was concurred in.
Also, from the same Committee, the bill [S. 39] to amend the drainage act of May 22, 1859, with a recommendation that it lie on the table, its provisions being incorporated in the bill S. 88.
The report was concurred in.
Mr. THOMPSON, from the Committee on Benevolent Institutions, returned the bill [S. 94] concerning homes for friendless women, with sundry amendments.
The amendments were not read, but the report was concurred in.
Mr. DWIGGINS, from the Committee on Banks, returned the bill [S. 63] in relation to holidays to be observed in payment of notes, etc., and the bill [S. 99] to empower sureties who have been compelled to pay notes, bills, &c., for their principals, to collect interest at the rate mentioned in the obligation, with a favorable recommendation.
The report was concurred in.
Mr. BEARDSLEY, from the Committee on Manufactures, returned the bill [S. 96] to encourage manufacturing in this State, with amendments striking out the provision restricting the donation to forty acres.
Mr. O'BRIEN, from the Committee on Public Printing, returned the resolution of inquiry into raised vouchers of Public Printers, reporting the same with a recommendation that the words "The President of the Senate appoint a special committee of five members of the Senate" be page: 204[View Page 204]stricken out and the words "Committee on Public Printing" substituted in lieu.
The report was concurred in.
SUPREME COURT DISTRICTS.
Mr. DAGGY, from the Committee on Organization of Courts of Justice, returned the bill [8. 52], dividing the State into five Supreme Court Judicial Districts, with a majority report recommending a substitute therefor.
Mr. HOUGH presented a minority report from the same committee, dissenting from the majority report for constitutional reasons, that the districts should be composed of contiguous territory. They report a substitute for the bill [S. 52]. Mr. Hough constitutes the minority and dissents on the ground that the extension proposed by the majority is in violation of a section of the Constitution, which provides that "such districts shall be formed of contiguous territory as nearly equal in population as, without dividing a county, the same can be made." He says he finds a difference between two counties, which can be remedied by his substitute, whereby the districts will be composed of contiguous territory, and the population in each will be as follows: In the first district, 335,041; second district, 334,456; third district, 335,466; fourth district, 334,274; fifth district, 336,809.
Mr. GLESSNER moved that the reports lie on the table and be made the special order for Wednesday next at 2 o'clock p. m.
Mr. DAGGY opposed postponment, as it was important to put this bill forward.
Mr. GLESSNER modified his motion by changing the time from Wednesday till Monday.
Mr. HOUGH urged the concurrance of the Senate in the minority report, which makes a variance of but about 2,000 from the lowest to the highest number in each district, while in the bill recommended by the majority there is a difference in population between the districts of about six thousand. He favored the motion to make the subject the special order for Monday at 2 o'clock p. m.
Mr. DITTEMORE moved to amend by making the subject the special order for this afternoon at 2 o'clock.
On motion by Mr. GLESSNER, this amendment was laid on the table.The motion to make these reports the special order for Monday afternoon was agreed to.
REPORTS FROM COMMITTEES.
Mr. O'BRIEN, from the Committee on Organization of Courts, returned the bill [S. 51] to amend section 1 of the Supreme Court organization act of May 13,1852, with a favorable report thereon.
The bill was set for consideration with the special order on Monday afiernoon.
Mr. GLESSNER returned from the Committee on Organization of Courts, Mr. Boone's bill [S. 78] to amend section 19 of the justices act of May 29, 1852, with a recommendation from the majority that it lie on the table.
The report was concurred in.
Mr. HOUGH, from the Committee on Organization of Courts, returned the bill [S. 30] to amend the Supreme Court organization act, with a recommendation that it lie on the table, its provisions being included in other bills before the Senate.
The report was concurred in.
Mr. DAGGY, from the same committee, returned the bill [H. R. 32] to provide times for Common Pleas Courts in the Sixteenth District, with a favorable report.
The report was concurred in.
He also returned the bill [H. R. 49] creating the Twenty-second Judicial Circuit, with a similar report.
The report was concurred in.
He also returned from the same committee the bill [S. 68] to amend the second section of the 23d Common Pleas District act, with a recommendation that it pass.
These reports were severally concurred in.
Mr. O'BRIEN, from the Committee on the Rights and Privileges of the inhabitants of the State, reported back the bill to protect bodies of water from which supplies are taken for cities, etc., from defilement with an amendment in relation to the penalty for its violation and recommended its passage.
The report was concurred in.
Mr. GLESSNER, from the same committee, returned the bill [S. 84] to protect citizens of the State against empyricism, with a recommendation from the majority that it lie on the table.
It was concurred in.
The Senate then took a recess till two o'clock p. m.
AFTERNOON SESSION.
Mr. BROWN, from the Committee on Railroads, returned the bill [S. 6] concerning the transportation of freights and passengers over railroads in this state, with several amendments, and a recommendation that after the adoption of the amendments the bill be passed. The amendments were merely verbal, except one, which makes the provisions of the bill appy to all common carriers.
page: 205[View Page 205]The report was laid on the table, and the bill, as well as Mr. Brown's bill upon the same subject, [115], were made the special order for next Monday at ten o'clock a. m.
On motion by Mr. DITTEMORE, all bills having reference to this subject were made the special order for next Tuesday at ten o'clock.
STATE AGENT.
Mr. GREGG offered a resolution that the Judiciary Committee return the bill [S. 21] to abolish the office of State Agent on Monday next. Two years ago he urged the passage of a similar bill, but the seemingly good reasons against such action at that time have passed away, and there can be no serious opposition. By the terms of the bill passed yesterday, the State Agent will have nothing to do with the payment of the old Internal Improvement bonds.
After debate the resolution was adopted.
TAXATION.
Mr. BEARDSLEY offered a resolution, which was adopted, that the Finance Committee inquire into the expediency of making a general revision of the laws relating to taxation, and the assessment and collection of taxes.
INTOXICATING LIQUORS.
Mr. DAGGY offered a resolution the Committee on Temperance report a bill on the subject of retailing intoxicating liquors, embracing the following provision: First, that no license shall be granted for the sale of liquors except upon a petition to the Board of Commissioners signed by a majority of all persons over twenty-one years of age within the district where the petitioner desires to sell; second, that licensed liquor dealers shall be responsible for damages caused wholly or partially by intoxication which they have been instrumental in producing.
Mr. BROWN moved to amend so as to instruct the committee to inquire into the expediency of passing such a bill.
The amendment was accepted and the resolution as amended was adopted.
NEW PROPOSITIONS.
Bills for acts were introduced, read the first time and severally passed to the second reading, to-wit:
Mr. HALL, a bill [S. 130] for an act to establish a sanitarium, to provide for the government thereof, repealing all conflicting laws, and declaring an emergency. [The bill provides for the care and custody of inebriates among other unfortunates, and appropriates $50,000 for the sanitarium.]
Mr. TAYLOR, a bill [S. 131] for an act supplemental to the act establishing a reformatory institution for women and children, approved May 13,1859. [It proposes an appropriation for the completion of said institution.]
Mr. BROWN, a bill [S. 132] to amend the twentieth section of the act of May 13, 1859, to establish a reformatory institution for women and children. [It provides that such persons may be admitted and detained till eighteen years of age.]
Mr. SCOTT, a bill [S. 133] to provide for a more extended and improved system of college and university education. [It proposes that the State University, the State Normal School, and the Purdue University shall constitute the Indiana University.]
Mr. FRIEDLEY of Scott, a bill [S. 134] for an act to create the Twenty-sixth Judicial District of the Court of Common Pleas, providing for the appointment of judge and prosecuting attorney thereof. [It makes Lawrence, Monroe and Morgan counties to constitute the Twenty-sixth District.]
Mr. GOODING, a bill [S. 135] for an act defining what county shall constitute the Thirtieth Judicial Circuit. [The county of Vanderburgh.]
Mr. THOMPSON, a bill [S. 136] pertaining to division walls and digging cellars in cities and towns where there is property adjoining belonging to another person.
Mr. HOUGH, a bill [S. 137] for an act to fix the time for holding the Courts of Common Pleas in the Eleventh Judicial District, and repealing all conflicting laws. [Hancock, Henry and Madison counties are affected by this bill.]
Mr. TAYLOR. A bill [S. 138] limiting actions founded on judgments or decrees of courts to ten years, and declaring the act a statute of repose.
Mr. BEARDSLEY. A bill [S. 139] for an act to enable railroad companies to alter their lines in certain cases and declaring an emergency.
Mr. HOWARD, a bill [S. 140] to amend the act relating to wills.
HOUSE BILLS ON THE FIRST READING.
The following described bills from the House of Representatives were read the first time and severally, passed to the second reading.
The bill [H. R. 6] creating the Indiana Centennial Association, was read the first time.
The bill [H. R. 35] to amend the general practice act of June 17, 1852, in section 90.
page: 206[View Page 206]The bill [H. R. 36] to amend sections 1 and 6 of the Franklin Insurance Company's charter.
No. 59. to amend the act providing for the election or appointment of Supervisors of Highways.
The bill [H. R. 70] to enable counties bordering on State lines or rivers forming boundaries to aid in the construction of railroads in the counties opposite.
The bill [H. R. 71] to amend section 60 of the act to repeal all laws in force for the incorporation of cities, approved March 14, 1867.
The bill [H. R. 114] to amend section 1 of the act of March 1, 1853, authorizing the construction of mill dams.
The bill [H. R. 134] to fix the time of holding Courts in the Twelfth Judicial Circuit.
The bill [H. R. 137] to revise, simplify and abridge the rules of pleading and practice.
The bill [H. R. 139] relating to expenses incurred by one county on account of changing venue from another.
The bill [H. R. 144] to provide for the crossing of railroads, keeping in repair such crossings, and for the expenses thereof.
The bill [H. R. 155] providing for a general system of common schools in cities of 8,000 inhabitants and over.
The bill [H.R. 162] to authorize cities to correct erroneous description of real estate liable to city taxes, etc.
The Senate then adjourned till Monday at two o'clock p. m.
