Ypsilanti sentinel. [volume] (Ypsilanti, Washtenaw Co., Mich.) 1843-1900, 1847-01-06

Wdttdulo, IL, fV1 %
Outstanding trea
sury notes and in
terest, s,457 90
Due University
fund, for warrants
received, 6s,l5o 90
Due State Build
ing fund, do. lo,s9o as
s3,s42,6 $50 80
Making the balance due on debt
outstanding on the 3Oth Novem-
Der, 1916, including interest to
January /, 1s47, s2,s42,65o 30
The balance due on the the sale
of the Central and Southern r.
Roads, is s55,5lo "a
--
Which deducted from the above
mentioned Indebtedness, leaves
total of Internal Improvement
debt, $l,9Sz,140 IT
The resources applicable to this
fund, as estimated by the Auditor
General, amount to 422,l23 90
The Clinton and Kalama zoo Ca
nal, may also properly be consid-
cred as means applicable to this
purpose,
The total amount of Internal
improvement debt, discharged BY
payments on the sale of c. R. is 81 1874, 4S9 81
The sale of this road to the Central Railroad
Company, was perfected, agreeably to the act
authorizing the same, in September last. In
compliance with the provisions of the act of in
corporation, the said company paid into the
Treasury in coupons and money for interest le
in January and July 1916, the sum of sos, Oo0,-
90, and upon iron contracts outstanding, and
money to liquidate the same, $l35,673 al.
The Southern Railroad Company has also
completed the purchase of the Southern road,
under its act of incorporation, and has paid i'm
to the Treasury the sum of $4,000. Of this
sum $4,000 has been received since the close
of the fiscal year, and is therefore not included
in the above statement of payments.
The remaining liabilities of the State, tsiial-
ally denomnated the contingent debt, consist
of loan of 100000 in State bonds, to the De-
troit and Pontiac Railroad Company; the same
amount to the University of Michigan; and the
deposites in the Treasury, of the surplus reve.
nue. of the United States. For the payment of
the loan first mentioned, the Detroit and Ponti-
&C Railroad is pledged to the State, and proc e.
dings for the collection of the amount due, are
now pending in Chancery. The ample resour-
ces of the University fuod are sufficient to meet
the annual interest," and ultimately, the prioci-
pal of the University loan, and, demanI by
the general Government, for the repayment Of
the depostes, is remote contingency.
The Balance in the Treasury, at the close of
the fiscal year, was S78,56l 10
In the above statement of the Internal I'm
provement debt, it will be perceived that the
bonds amounting to $3,3l3,0OO which were de-
lirered to the United States Bank, on special
contract, and paid in part only, are stated at the
amount actually received by the State upon them
BY an act of the Legislature, approved March
8, lS43, it was proposed, upon surrender of
all the bonds of this class, to issue new bonds
for the amount actually received, after deduct
ing specified sum for damages, with a pledge
for the punctuaI payment Of interest. These
bonds, tbs understood, have heretofore been in
deposite in Europe, under terms which have
precluded their control by individuals for this
A recent distribution of them among
the individual creditors of the United States
Bank, to whom they were pledged as security,
has now obviated ell difficulties of this nature.
No occasion. under existing laws on this sub
ject, has been presented since my induction in
TO the Executive office, to require an exaEliEa-
ton into the merits of any ques ton as to the
actual amount to be paid ON this class of indebt-
edncss. Whatever the principles of ilstics
shall require, the holders will not fail to re-
cere, and il is for the interest of all partiesfha
a final adjustment should be made, with as little
delay as possible. A modification of the law 1
on this subject, extending the benefit of its pro-
visions to the holders of any portion OF the bonds
in question: and reducing the amount to be de-
Quoted for damages, would seem to be required.
Although no surrender has been made under
the act last mentioned, there have been receiy-
ed into the treasury from the Central Railroad
Company. at the rates specified in their act of
bonds of this class, amounting to
$4,000.
l cannot too strenuously urge upon your con-
sideration, the duty of the State to provide for
the speedy adjustment, and ultimate paymen,
Of the internal Improvement debt. This indebs-
edness has for years embarrassed the Treasury,
retarded immigration, and discouraged the en-
terprise of Michigan. The material reductions
in its amount. effected under the legi slatise en-
actments of the last session, inspires new con-
fidence in the power of the State to discharge
all its outstanding obligations. 1t is not to BE-
expected that this can be done without jealous
efforts, or without contribution from the means
of our citizens. The sacrifice required to MAIN
tain the reputation and honor of the State, will
am confident, be cheerfully made, and judi
cious legislation, having for its object the dis
charge of the, public debt, will meet with q
hearty response from the people. In additions
to the punctual payment of interest," provision
should be made, by setting apart the means for
that purpose, fer the gradual discharge of The
principal.
The nett earnings of the Central
Railroad, during the portion of
the year while it was owned by
State, amounted to Sl04,e3S 66
OF this sum, there was paid on
claims for iron, locomotives &
construction, $3l 1925 g.