Indiana State sentinel. [volume] (Indianapolis [Ind.]) 1845-1851, 1846-01-03
Com niunicatiOn from the Governor, i'm
Reply TO n Resolution Of the Senate,
in Relation to Charles Butler, Esq

II
Reply 10 u Resolution Of the Senate,
in Relation to Charles Butler, Esq
TO the President Of the Senate.
SIR:-In compliance with the resolution of the
Senate requesting lay before that body such in
formation as | may have, as TO the name and
residence Of such bondholders, may have en-
ployed Charles Butler, Esq, the amount they may
respectively hold and 'the extent OF the power the
said Butler NAV have in the premises" have tol
state that with the exception of the houses of the
Messrs. Rothscbds, F. HUH q Co., Magniac, Jar
dine e. Co., Barring Brothers d Co., Morrison d Son
g. Co., and Palmer, Mackillop, Dent Il Co.-all OF
whom it is understood individually holders OF our
bonds, have no means of knowing with certainty,
the names or residence of any of our bondhouers,
who have employed Mr.. Butler, nor of course the
amount they may respectively hold Ii is understood,
however, that the great of our public debt rep
resented by him on this occasion, was negotiated
through the above mentioned houses, and is held by
many probably thousands of persons of comparative
ly small means, residing abroad. To these houses
these hon,ihcldefs it is presumed naturally look for
advice touching any arrangement that may be made
In the premises.
From what is now said it is evident that it would
be impractlcable for these bondholders to constitute
any person technical attorney In fact to act for
them in making arrangement towdrds the restora-
ton Of the honor and credit of the State, not only
because of the large number of the holders OF these
bonds and the strong probability that from death and
other causes, some of them may be minors, and
consequently disqualified from giving such power, but
also because, were this difficulty surmounted and
regular power Of attorney executed there is nothing
prevent their passing away the bonds held by Them
within the next hour, by delivery to third persons,
who as innocent purchasers would not be legally
bound by any acts growing out of such power.
The expression therefore, used in transmitting tie
communication of Mr. Butler to the General Assem-
bly, which he described the authorized agent
of very large body of the holders of the bonds of
the State of Indiana, not intended to intimate
that he had been constituted such agent under the for
NAL hand and seal of all the tondhoders but it is al
most literal quotation from letter addressed to me
by Mr.. Palmer of the house Of Palmer, Mackillop,
Dent g. Co., gentleman of high standing for char
acter and knowledge of finance, dated New York,
the 9th of February last and in which, the part of
the above named houses representing snch bondhold-
ers, and fully empowered for that purpose, duly
advised that Mr.. Butler appointed such agent
NV personal interviews with Mr. Butler the inspec-
ton of his correspondence with his employers which
he has freely submitted to me, and my knowledge of
md confidence in his character in connection with
the letter of Mr.. Palmer, satisfy me of his abundant
authority to act in the premises
But although it is obvious that Mr.. Buffers powers
in the premises have not (nor indeed could they have
the technical fornalty required for the conveyance of
lands or for the performance of any other legal and
binding act between individuals Simply yet it is re-
specially submitted that they abundantly suf-
cent for the object in view:
1t is conceived be entirely manifest that the con-
dtion of finances cannot be resuscitated, without
liberal arrangement between the State and her cred
| itors.
Before such arrangement can be made, we must
know what will be acceptable our creditors. Mr..
Buffers authority, 1t is believed, is sufficient for that
purpose for there is scarcely doubt that whatever
he agrees will by the advice of the houses through
whom bonds negotiated be acceded to by
| fho hondhOderS he off red
In the shape Of act Of the General Assembly and
provision might be made that it should be opera
tive as to any bondnolder. until his bonds were sur
rendered and certificate Of stock issued under
the notifications Of the new arrangement. This
would constitute the final and Interchangeable assent of
the creditor. and would obvate and preclude all dan
ger that might arise from the want of n technical
power on the part of the agent.
The arrangement made between the State of Hi
nos and portion of her creditors, based the
authority of the agent of the creditors stronger
more formal than that now held by Mr.. Butler.
| | cannot omit the expression of strong wish that
the Legislature may find it to comport with their
of duty to listen, at least. to the final PROPOSE
ton of bondholders through Mr.. Butler, (and
which have not yet seen,) before closing the door to
all negotiation.
The time is believed to be highly propitious for
settlement of the question The people are believed
to be anxious for 1t, If ii be done on terms that
will bring the matter clearly within their ability to
meet. The consequent prosperity 10 the State at
large and to each inhabant will be far beyond the
small increase to the taxes that may become neces-
sary.
1t is a great moral question, involving the dearest
interests of the entire people of Indiana in the
adjustment of which, all mere party and local consid-
erations should be merged.
| If the negotiation is now broken off the ground
of the want of formal power the part of Mr..
Butler, power which cannot be given to any one
it is apprehended that il viii be viewed by crcdi-
tors as decision far as this Legislature is con-
cerncd that no proposition will ever be entertained.
and that no effort will ever be made to redeem the
| honor Of the State.
| As the bondholdcrs have been al the expense of
sending their agent to make an attempt at a negotia-
ton, cannot avoid repeating the hope that re-
spcctful consideration will be given to any proposition
that may by him be submitted
am, very respectfully,
JAS. WHITCONB.
indianapolis, December 27, 1915.