EXHIBIT C.
TERRE HAUTE, Nov. 25, 1872.
MY DEAR GOVERNOR:--At your request, I have examined our record in regard to the redemption, by order of Court, of four original Wabash and Erie Canal Bonds, of the issue of August, 1832. These bonds were sold to parties in New York by William C. Linton, Nicholas McCarty and Jeremiah Sullivan, Commissioners, the General Assembly of Indiana, in January, 1832, having authorized a loan of $200,000, for the purpose of commencing the construction of the Canal aforesaid. This was the first loan made by the State for Internal Improvement purposes. Bonds 69 and 70 were held by Joseph D. Beers, and 53 and 54 by Israel Cohen. These bonds were redeemed in New York, at the office of Charles Butler, one of the Trustees of the Canal, and report made to the office at Terra Haute of such payment. The amount paid to the estate of J. D. Beers, for Bonds 69 and 70, principal and interest, was $7,225.46, and to Israel Cohen $5,026.55. But this was only a partial settlement as to Cohen's bonds. That gentleman subsequently procured an order of the Court ordering the payment of interest on the coupons from the date of their maturity. This additional sum was added to the redemption of bonds Nos. 53 and 54, equal to the sum paid to the estate of Beers. As the bonds were of the same date, with like number of coupons attached, the redemption of these four bonds cost the Board of Trustees the gross sum of $14,450.92.
The Board also expended considerable sums of money in defending the validity of the Acts of 1846--'47. They not only were compelled to pay attorneys of their own selection, but the Courts, in their wisdom, decreed that adverse counsel should also be paid out of the Trust funds. They were so paid in obedience to such decrees.
In the cases of Beers and Cohen, John Ferguson and others, and J. M. Garrett, the Trustees have endeavored to defend the legislation of the State from adverse interference, thus incurring expenses which you justly recommended to the attention of the General Assembly. This account will be made up whenever called for by the Governor.
Very truly, your obedient servant,
THOS. DOWLING,
Res. Trustee of W. and E. Canal.
HIS EXCELLENCY, CONRAD BAKER,
Indianapolis, Ind.
