Evansville weekly journal. [volume] (Evansville, Ind.) 184?-18??, 1848-01-20

In my next annual message, that oflast ses-
sion, IN communicating the fact that the prin-
elple OF the arrangement offered by the bill,
had received the assent of the committee, oc-
casion was taken to state that within the sphere
of my own observation. and so far as nv infor-
nation extended, the expression of the great
majority of our own citizens was also decided
ly IN It's favor. 1t was further stated that the
bondholders desired some notifications of the
Dill by the Legislature, which | was informed
would not conflict with the principles of the
bill, and yet weredeemed essential for CARRYING
into full effect its fair and obvious intent, and
that any such notifications if they add nothing
to the burdens of the people, would it was be-
lieved, be responsive to their will, and, it was
also trusted, would receive the favorable ac-
ton of the Legislature.
The action on the proposed notifications re-
suited In the passage of the supplementary bill.
which received my approval January n, 1917.
Both of these bills contemplated that on the
surrender of any of the State bonds, they should
be cancelled, and new certificates issued to the
holders in lieu of them, and that only one-half
of the interest due on them (which is fixed at
the uniform rate of 5 per cent. per annum,
should be paid from the treasury, and the other
half exclusively from the profits of the canal.
Both of the bills also contemplated that the
bondholders who should come INTO the arrange
ment, should finish the canal to Evansville, at
their W expense, aided by the proceeds OF
the lands, &C., which were granted TO the State
for that purpose, and they were to look to the
profits of the canal alone, to repay them the
cost of its construction and management.
But while the original bill gave the State the
option of afterwards throwing one-half of the
principal also, upon the canal for payment. in
the supplementary bill land consequently by
the law as it now stands) that object is at once
effected by one-half of the surrendered debt,
both principal and interest resting exclusively
upon the canal for payment, the State being
released from all further responsibility III rela-
ton to it.
The great and leading principle therefore of
the first bill, namely the satisfying of one half
of the surrendered debt from the canal, remains
unchanged nor does the supplementary bill in
volve the State any further in debt. The main
difference between the bills, consists in the
latter giving to the bondholders who should
finish the canal, a priority in the payment of
their claims and expenses about It's construc-
ton. out of the tolls and profits, over those
who would not Join Units construction. The lat
class, however, by surrendering their bonds.
would still have the interest on one half of
their debt (equal t o23 per cent. on the whole)
satisfied from the treasury, as in the case of
the others, and they would also be paid in
whole or in part the interest on the other half,
from the profits of the canal if any remained,
after paying those entitled to a priority, as be-
fore stated. Even if they received nothing
from the canal therefore, the amount of inter-
est paid to them by their acceding to the pre-
sent arrangement would be only one sixth less,
than they would have received under the rival
plan introduced into the Legislature which pro-
posed to give 3 of the D per cent. which their
bonds called for. BY the rival plan too, the
canal would not have been finished, as the
credit Of the State was broken down, and she
could hardly have been expected TO construct
it, with only the lands granted by Congress for
that purpose.
This muni6cent grant then amounted to
about 800 900 acres of land, wouldin that case
by the terms of the grant, have reverted to the
United States and thus have been los to
Indiana.
By the supplementary bill, all bondholders are al.
owed to subscribe towards the completion OF the ca.
nal until to as late a period as the first Of November
last and to surrender their bonds at any time before
the first Of the following month. 1t was also provid'
ed that unless the subscription towards the canal was
made, and bonds to the amount OF $4,000 600 prlnci
pal surrendered by the times limited In the bill fo
those purposes respectively, the arrangement should
cease and be-void. Apprehensions were expressed or
the part Oh SOME opposed 10 the m6uSuTe. tDdl q COlH'
p~aritiyely few wealthy persons controlling bonds Il
that Tor a little larger amount, would get possession
of the canal, to the exclusion of the residue OF III,
bondholders, who on account of their supposed power
ty,would be unable to pay their quota towards compile
ting it, and by reason OF the priorities already Spoken
of be excluded from any share in the profits. The
objection was not that the bill of last session imposed
any greater burdens upon the people of the State thai
did the bill OF the previous session, Qor there was NJ
pretext for that) but that one part of our creditor
would be benefited by it more than the others, anC
that q large portion of them being unable to come in
to the arrangement, their claims would thus be virtu
ally repudiated. The fear indeed was expressed BY
some, that but one half of our debt would be brough
in (being S5,545, 900 of principal with the interest
that amount being necessary, before the deed oil trus
for the canal and its appurtenances, should be final.
executed.
The right 10 priority of payment, however, seem:
in practice to have produced an effect precisely thu
reverse of that apprehended by some, namely, thu
rapid surrender OF a heavy amount OF bonds, IN the
hope of beneftting by the priority; while as to thu
first bill, which did not contain the clause in ques
ton, not a bondholder would accept of its pro
visions.
1t is now cause of congratulation with all to flint
that at our last advices more than 50 ,000,000 ofbonds
exclusive of interest, had already been cancelled un
der the arrangement.
present session. by the trustee residing at New York
that when he left that city, he had information tina
the surrender to the amount of about half a million
more was shortly expected, and hopes are entertain
ed that the bulk of the remainder will finally com
: into the measure.
Having been satisfied that the requisite number O
bonds had been surrendered to the Agent of State TO
exchange and cancellation, and that the prope
amount had been paid over towards the construction
of the canal, the deed ofconveyance bearing date tn
3lst day ofJuly last was duly executed to the trustees
as required by the 9th section of the supplemental
bill, and consequently the original bill, as moditie
by that, is in full force and operation.
Whatever differences of opinion may have exiate
1 heretofore in relation to this measure, it is confidentl
hoped, that now, as the law of the land, and closel
connected as it is with the character and prosperity G
the State and OF its citizens, it will receive, as in M
: judgement it justly merits, the support ofall, and tina
nothing will be done or omitted, which may be calcu
lated in the least to violate good faith, or to impai
the efficiency of the arrangement. TIL first half year
ly interest required by the law was promptly paid O.
the first day of July last, and although it was foun
5 necessary for the Legislature at the present session t
e authorize q loan of the amount of the interest due o
e the first day of January, yet that was not because tn
present rate of taxation is not sufficient to colnpl
6 with the new arrangement, flor it is deemed ampf
sufficiently but because the revenue is not required b
e the the existing law to be paidinto the treasury unit
: the 4h Monday of February, and hence it becam
e necessary to merely anticipate the revenue by the loa
. in question.
1t is respectfully recommended to your early con
{ sideration, to adopt some permanent measure tor pre-
e venting any such temporary embarrassment IN III