The Evansville daily journal. [volume] (Evansville, Ia. [i.e. Ind.]) 1848-1862, 1851-01-18
Governors Veto Message.
Gentlemen ofMe House Of Representatives


| herewith retutrl you the bill of your
House, No. A, being an act authorizing the
Terre Haute and Richmond Railroad Com /
pany to issue bonds, &C.. with my reason Tor
Withholding my signature.
THIS bill authorizes the Company to issue
bonds, TO sell the same within or out oil this
State, TO bear any rate OF interest per annum
and to sell the same at such rates ami Tor
such prices, as may be agreed upon, aud that
such sales. though made at a discount, shall be
valid, as il sold at par. There is in this compa-
ny county stock. There is not a Railroad In
progress in this State, in which either there is
not county or city stock. This work is an i'm
pOrtan! one, it is part oil one oil the great
ihoroughiares Of the State; it is managed by
the most prudent men OF the country who
have embarked large amount OF their capt.
tai in the enterprise and who deserve 10 re-
lceive the aid of the Legislature, and nothing
but sense OF duty, compeis me 10 return
this bill for your reconsideration. during
the last session, short time after the COM
mencement of my duties. the same question
was presented to me. l took occasion then.
in special message TO offer some sugges-
tons. Time has only served TO convince me
of the correctness of The opinions then advan-
ced, and take this opportunity, in the inves-
tigation of this subject, to refer you to Por-
ton of The views then offered, with snch
additional arguments as my time will allow
me TO lay before you. Irrespective OF the
question as 10 the rroprlety oil counties ana
cities III their corporate capacity subscribing
TO the stock OF such works, II Is clear that
when such subscriptions are made, the inter-
est which the counties and cities hold, should
be surrounded by safeguards Of the most un-
questionable security. From this considera-
ton alone, ii is submitted that it would be
Improper 10 invest The directory OF any COM
pany' with unlimited power 10 sell bonds at
any rate Of discount theysmay please to make,
and 10 cause them to bear any rate OF inter-
est however exorbilant. Is 1t not the duty
of the law making power TO protect the tax
payers Of the subscribing counties from eG-
Icroaehments especially when the irrevocable
1 character of such bonds Is considered
But this objection 10 tic unlimited rate OF
interest and discount, is greatly strengthened
by Consideration OF the vast number oi en-
terprises Of this character i'll this and the adj
Joining States and The probable effect oil their
prosecution upon our financial condiuon.-
Facts OF recent occurrence are iull oil insrur'
ton on this subject The lesson that a SINH
lar state .. :..ings taught the people of tie
old world; trust are not forgotten. There
these enterprises have already received Sc
we're check, and it would seem that the spirit
o. speculation has been transferred from ih.
field cooperation, in great me" sure to TIN
! country. Here. similar scenes are now belns
r enacted. not to the same extent, it may be
but unless prudent foresight interpose IT
: salutary check, there is ground for the ap
a prehension that results equally disastrou
: viii here ensue. We are advised that one u
q IA
y lately established branch in our great com
c merciai metropolis, thus preparing Tor actor
: regarding this as the peculiar field tor sue
r operation and from the very Tact that 1t he
+ comes necessary now, in view OF the interest,"
d of certain companies in the prosecution G
/, these works, TO ask leave 10 ray higher rat
Il of interest than usual, and To sell their bond
= al whatever amount they may agree IN re
. ceive iseyidence OF a strong pressure, or other
IA wise Of an over action in this branch of enter
a prise. Indiana has had such lessun OH tn
5, subject ofthe prosecution of works OF SIM
)f lar character. that we shall be justly charge
able with want OF prudence ii we fall agai
into Il like difficulty, without having mad
some exertion TO avoid the disaster. ii III
&c moneyed operations Of these companies al
So conlined to the ordinary and safe methods
n conducting business; IT large debts are nj
r. Contracted, at heavy rates Of interest, or &
ruinous discount, tuen IN case OF q geGer;
81 pressure. the worst that could happen woul
10 be suspension oil the work.
E. But consider what would be the effect,
rs by general monetary revulsion, such a wor
should be arrested, while IN the midst OF j
10 active operations, ii burthened with the oil
&c legation to pay heavy rates oil interest, and ;
the same time, with no part of the work S
| IA nod IN ke hlp of
revenue. Extend this example over III
err whole State, and what would we see, but IL
M materials Of these works brought under ii
i, hammer, the bonds pledged to them dispose
OF at forced sales, 10 the Consideration OF I'll
VI too contidiDg occupants, and the tax pave
Sc toi a subscribing county, grooming under
o. buTdensome imposition for the purpose OF pa,
=, ing the interest on stock which paws
- dividends. 1t is said. if admit is prescribe
20 as TO the sale OF these bonds, or the inlere
e. that they shall bear, that no sale can be mat
" at any better rates or limits This is u
|. true. Ii was not SO iii The sale of the Sta
3 bonds, during tine progress of our 81 stem
internal improvements. There was invari
Us bly, limit prescribed, as TO the interest (!
n bonds should bear, and according To the r
/. ports of the Fund Commissioners, sales we
~. made for less than the rates prescribed. at
" III many h'S'"heSs IIculluHi. Out Win {
cir the restrictions that could be thrown arouI
the sale of our bonds, the State suffer,
greatly, and she will not soon again lend h
credit, or become inter1 sted in any works
'E. internal Improvement.
he We are now in the midst of the second hi
de tory Of internal improvements in Indiana.
ID! which a'e involved large amount Of Corp
nut ration stock Of Counties and Cities.
MI 1t is IA matter Of but little difference. wll
Their the State, Counties, o. individuals, ca
no rying on an enterprise, If the same fails
III turns out badly, it will equally affect Il
NJ while community.