Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1847-02-25

A brief outline Of the State Debt Bill
of ISl6.


them to the State, for which the State undertook to
issue certificates Of stock, which should be redeemabe
after twenty years at the pleasure of the State.
Each certificate was to set forth 1st the amount Of
the principal of the bond surrendered: 3D. the amount
OF back interest computed at the of two and a
half per cent per annum, from January 1, ls4I, to
January l, ls47 Sd, that the State would nav in.
terest from the State Treasury upon the principal in
the certificate, from January l. l647 to January /,
1898, at the rate of two per cent. per annum 4th,
that on the day last specified the two and half per
cent back interest specified in the certificate and one
half OF one per cent. the principal in the certi-
cate from January 1, 1s47, to January l, 1853.
should be funded Chat is, added to the principally on
the first day Of January, 1853. upon which. principal
and funded interest, the State would, from that date
pay from the treasury interest at the rate of two and
half per cent. per annum. Such was the under
taking Of the State to be set forth the face of the
certificates Of stock. (Sect. ~
By Proviso in the same section, the State under
took to levy property tax of twenty -fve cents on
each 500 Of value, and poll tax of seventy-fve
cents; and if from any cause, there should not be
sufficient money In the treasury to pay the two per
cent upon the principal in the certificates of stock
the State would pay such deficiency on the first day
OF January, 1853, with 6 per cent. interest from
the time 1t became due. For instance, if holder of
$1,000 bond surrendered it, the State would issue to
him certificate of stock, for principal s2OOO-for
back interest," two and half per cent for six years.
S30O-or half of one per cent for six years sue
ceeding January 1, 1547, s6O-making $3.50 to be
funded on the first day of January, 1853 OF this (s2
S6O the State to pay out of the treasury half
of the principal and two and half per cent interest
upon the whole, or five per cent upon one half.
The State debt contem plated by this arrangement
amounts to Sll 900 600 principal, one half chargea-
bic upon the treasury, s., 545, 900; two and half
per cent. back interest from January 1, l54l, to
January l. 1s47, amounts to s1,663 500; the one
half Of ono per cent from January 1, 1647 Janu-
airy l. 1852 amounts to 1882 200, making the entire
funded debt to be provided for by taxation S7541,
200 the annual interest be provided for by taxation
after January 1, 1858. 1877 O6o. In addition this
there is probability that there will be large
amount Of unpaid interest bearing interest at the rate
of six per under the last provso of section lst,
on the first day of January, 1883
II will be observed that the funded interest amounts
to IS per cent upon the principal of the whole debt
SO per cent. upon the moiey chargeable upon the
State treasury, being $780, 200 including the two
and a half per cent. back interest, and half of
per cent. interest to accrue, this being almost
equal to the amount of money required to support the
State government for twenty-five years at the present
rate of expenditures and the interest upon this in
terest, at two and half per cent. annually will be
almost equal thirds of the amount required to
support the State government.
The State further undertook to convey to trustees
for the of the subscribers the bed of the canal
completed and to be completed, from the Ohio State
line to Evansville with all its basins feeders, &C.,
and all the canal lands unsold and all accounts for
money due for lands sold, and for leases for water
power, &C., the bondholders or others
should surrender half of the bonds of the State
and subscribe towards the completion of the canal,
the sum of S2,250,0O0, and pay ten per cent upon
the subscription to the trustees. (Sectons g. g. and
33)
Trustees-The trustees were to be three in number
and constitute body corporate by the name of the
Board of Trustees of the Wabash and Erie Canal,
Two of them were to be chosen by the subscribers,
and the third by the Legislature during its recess
to be appointed by the Governor.
Subscri6ers.-Any person, whether bondholder
not might subscribe towards the completion of the
canal. ANY person not being bondholder could
avail himself of the privileges of the act by subscrb-
November, 1876. A bondho,der might subscribe al
any time within two years from the first day of No.
yember. 1S46 (Sections 6, and IA Before the acl
could go into operation they bound to subscribe
the sum of S2,25O.Ooo, and pay the trustees ten
per cent upon this amount, (S225, 000) and to con-
tnue to pay all acquisitions made by the trustees anc
complete the canal to Evansville within four years
after taking effect Of the act.
Forjeitures.-Each subscriber would forfeit to the
State all sums previously advanced. and all prortie.
given by the act, by failure, for ninety days. to pay
his share Of any requsition but any other subscrbe
or other person might make the advance required o
such delinquent subscriber and thereby acquire hi
lien upon the canal and Its Each subscri
Der would also forfeit to the State all his right tn
canal lands and revenues. &C., if the trustees shou
by reason of the delinquency of the subscribers, fai
70 complete the canal to Evansville within four year
above stated, and the canal the land unsold, &C.
would then become the property of the State. Th
execution and delivery of the deed for the cana
canal lands, &c, would operate a release tn
State Of the payment of one half Of the debt, princ
pal and interest," and that half as far as the bond
were surrendered became chargeable upon the cana
and the freitures could not operate so as to pledg
the faith of the State for the payment Of any part
that mOiety. (Section 81
Priorities.-The priorities were follows Is
the proceeds of the canal lands which amount
about 1000 acres to be applied to the repay
ment of the principal of the money advanced towart
the completion of the canal then the balance of Il
proceeds of the lands if any, and the tolls and req
nues of the canal, after making all needful expend