Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1842-03-08

VI Ati 'ON AM i-NA)4NN &4.tIlo 4. IL
ROAD.
Your committee deem Il pro2cr to place the o1
Gers and agents employed on the Madison rad. tol
the last two or three yeas, ~ one group. Fms ar
ransement Is 4 saving fAb,r. and perhaps the be-j
ono which could be adopted - gve the Senate
clear Outstanding ot the whole subI'ct. ~ vtrj
Gus have been tho a ,ons OF law, 30 mutt flrio4-
have been the acts OF wa-tciui cxtravag turcs and
50 many aud complex have been the frgGucut lris
oi concetlmcnt, IN winch many of the agents en-
plpycd on that road have been engaged, that your
COMMITTEES fad it difficult to distinguish between
the innocent and the guilty. Aud the wreck OF
state and lnd dual credit, which has all ctcd the
latd within the pcrlod - time covered by tins head
ct the report, winnie the treasury was bare, aud
State bonds were without price, II was matter
OF wonder TO tins community that the Madison rail-
road still progressed The agents who operated in
tins matter and the means employed were alike con-
ceaed. To add to the mystery of this aiflr stat
utes seemed to have effect on them they appear
10 have been treated as mere "Reminiscences. The
general act suspcndng operations on the public
works and providing Tor the pay OF those contr1c-
tors who ouId consent TO abandon their contracts,
mad the effect OF causing operations TO cease else
where, but the Madison road pursued the even ten
or OF It's way. I'm the winter OF ISL tho leEsla-
ture pissed act prohibiting the ssue or sale of
State bonds on any other terms than for cash, aud
at par. Another act provided that proceeds arising
from the sale OF State bonds should be deposited IN
the treasury and dlsbursed by drafts the treasu-
ry. This was expressly declared 10 be the only
means Of disbursement, and ibis last statute had a
penalty attached to 1t, making violation of its
provisions, pcntentiary offence. No bonds have
been reported : sold at par. during the past sea
no depOsites Of sales made IN the treasury.
and no drafts on it whatever, and yet the Madison
and indianapolis railroad was steadily progressed
with. The attention ofyour committee was early
attracted To this subject and the solution II Tbs
riddle has occupied much of their attention.
The consideration of this subect, in a connect
ed manner compels the committee to speak of th.
conduct of several OF the officers in detached por-
tons. Fund commissioner, StaPp, for lpstlccci
vii have to be commented on in two divisions
Stapp at home and Stapp abroad. EX-Govcri5 r
MOBILES conduct also, VIZ nave to be cOns,G -. &.
under two heads, Of Noble oil the Madison ralso ID
and Noble said road Nr. John WoodJurn'
conduct as commissioner this road up to the yeli
lS39, has been separately considered. He Wi.
CURE under this head Ia the less exalted but scarce
y less important character Of member Of the Md
lson Bond Company Nith these preparatory re-
marks, your committee proceed ~ the examination
OF this mystery
10 find the end of skcn by which this laby-
rinth of operations may be threaded, your commit
zee 90 back To the contract. entered into on the
day of October, le39, between Fund Commission
ers, Stapp and Scott, by winch the Madison bond
company was spoken INTO existence. Tins compl-
ny consists of tie following members William
Hendricks, John W oOdbgrn, George W. Leonard
ctor King and John King. BY this agrcemeu;
which VIII be found in the documentary Journal, ISIS
and 10 page -, the sand fund cominIss iourrs sod
to the SAID company, State bonds TO amount not
exceeding 500 ,uno. The sums 10 be paid by the
company to b. laid out on the MADISON railroad un-
der the direction OF the board OF Internal Improve
nent Tie bonds we're sold at - cents to the dol
no
before the 10th day of December, 1910; the pay
nents to be made in instruments, DC. Tins coudi-
tlona contract was signed by Mr.. Scott, aud the
bonds were delivered to Gen. Stapp by him to ar
range the securities prior 10 4 consummatlon OF the
sale, appears on the same page by the letter o.
Mr. Scott reporting the contract. The contract
clearly contemplated being closed at some future
day. indeed the day is named for The delivery of the
bonds VIZ the 10th day OF December, 10. Il
contemplated also payment Tor these bonds ln casL
at that p.ice nothing was lacking 10 cUnsummate
the sale, the part OF the state, but the delivery
the bonds Al bonds delivered under that contract
to the bond company were absolutely SOLD Tor the
price stipulated, ana the bond company on lis part
became bound 10 pay the State that Price, ana 10
secure the payment as stipulated. Such WIS not
the practice, however, under this contract, II sc
are To believe the statements the individual laem-
bers Of the bond company mIde before yolT com.
mlltce under oath. We VIII commence with Ar.
JOHN KING, witness whose statements from j. Is
peculiar position to be received with many grams
of allowance. The first remarkable statement a
Mr. JOAN X iug is that the boud company, as such
never had any capital, nor dad trey need any, uJt
ing formed tor any other purpose than % tJcIll-
tate or continue the progress - the Madison road
THIS is given TO question NJ. =, pfgc % ti-
journal. BY "a reference 10 the contract II VIII b.
seen that the company were formed for thr purpose
OF purchas ~ State bonds, paying - cts. u tAe
f4tI fer IL az f..
conceive have rec red SOME ca p.t a. l. an
>~tr L. GGest.~a y. 1, Alr. k.ar denies That aat
4glr> c.S eyer dsarerel 10 the cI,n9la b e.t.ci
Of the fsnd commissioner uuaer SD .ts4et. o.!
tie bonds that were eyer used 1y tls company. cX.
copt one paid by Gov Na5ic IN NY Nats T. ca--
trlctoss or their ortcr were .eil y "a u.s agra
o.,ne fund comm,ss .oner. aad are -te'e! Il o., aa.
swer T. tlc 1th and ~. questions. VIZ -
subsequent meeting gives cttH'- - ~ u.eut g.
all the com?any'S dealings sta tie i.u4 c5...u...
s.oner Gen. StapP.
From. tl..s Statement, il wolld seem tiat Gen
Supp had mldc sale OF - bonds Ia Nv lerg. of
account Of the state. not an agent OF tie com
pany winch tEe.e . strong re lsnn to suspect aut
that after some negotiation between hitn ata til.
company, the comPhry gree, - take tao ss.c al
h.s hands or account q: lie Madison rilr0ad. T..
conditional contract Tor lie safe ~ bones wls con-
tlngsd from time to time, tY Messrs. Palmer aug
Stapg, the company beng permitted - close OF
not, until their Office eSpred asst winter. PRIOR Il
Isl ofJuly, lolo. the date Is not mcuiionedl tie
contractors on the Madison railroad were 10 iavol
OF gong on wIth the. work and wished 70 know
how they were to be paid If they did - or Ii
conference between General Stapp and -. Z
Madison bond company Stapp took the ground tta'
1t was useless 10 20 on with the work uu.e-S there
could be some understanding with tie contractor.
as 10 how they should De paid he SAID that lie call
ralse only one-tg.tI Of the amount. necessary &
carry on the road IN money, and that If the bono
company could not make enough out o; the bond.
under said contract Of -39 to pay tho residue tae
road must stop. II was lhon agrecd be;geen most o.