Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1851-01-23

agent might be induced agree such rate
interest," only be suicidal to the work itself but
by the destruction Of public credit TO involve all others
in its ruins?
II is confidently believed that no such policy has been
projected ostered in any State in the Union And
trust Indiana will not be the first to set the example.
In addition to the above consdera but
gard the passage of bill involving such important pri-
cipes on the day Of its introduction by repeated
suspensions of the rules, and without reference to
committee a an instance of hasty legislation which
alone would Justify executive interference.
JOSEPH A. WRIGHT.
January sth, 1851.
An Abstract Of the remarks of Mr. HANNA of CLAY on
the passage Of the bill (fhe reto of the Governor not
tcithStanding) TO amend the charter of the Terre
Haute and Richmond Railroad Company Delivered
IA Senate January 8, 1851.
Mr.. President:
When the af the Executive is interposed to pre-
vent the passage OF law, the Legislative department
should proceed with due deberaton upon the second in
vestlgaton of the subject 1t is also true, that when
bill has been returned with the objections of the Execu-
tive, that the reasons must be very coeent which will
justify the passage OF the law such Beev-
ing, As do, that such exist in the case
will proceed to give them in brief pos.
sble:
1st The road is much of il partly constructed and if
the company should be compelled cease operations
this Time no profits would accrue, and the whole
Penditure would be total loss the stockholders.
I'd. The authority sell bonds to capitalists in the
first place, better than transfer them into the
hands OF iron masters and they by second and often
compulsory sale forced them into the market at any
price.
Sd. Ii admit the argument of His Excelency to
be true, only this last: that the compa
ny may conduct its affairs in reckless and careless
manner that II will fail; and, consequence, involve
the stockholders.
As to the first of the above propositions il is vel
known that very large amount OF the work between
Terre Haute and Greencastle is already constructed
and the object now to be accomplished, is TO take such
WILL hlQ fha noI,.a
cessay to lay down the rails II this cannot be DONE all
the work already mPished-al the money already
expended will remain totally and absolutely loss the
stockholders Why so! Because the verk done i'm the
way of grabbing grading, bridging, sc but a singeg
mile Is finished To be yielding arevenue. Ii buys
farm at thousand dollars, and pays five hundred
down, would 1t be good policy, and of prudence
for him, as an economical man. shave his paper ten
per cent, and thereby enable himself TO paw for it, or
would be the better TO fold his arms surrender
his farm, and Lose the amount paidf Ii the farm
tam to yield good per cent upon the amount expend
ed hnancler would say, at once, borrow the five hum
dred dollars. have heard raise doubts as to
the ultimate protitableness of this line
As 10 the second proposition it is well ascertained
fact that if company goes into the money market with
its bonds for sale they will bring face previous
to the time when such company commences dividing
profits So if the agent of such company should
TO purchase iron for the of the road with the bonds
oil such company, he will be compelled to either sell
said bonds at discount pay than the cash
market value for the iron. Which is the better course
TO pursue? say il is better to sell the bonds for cash
even at discount and let the agent take the money
his hand, and make choice OF markets i'm buying ron
than TO be forced TO purchase Of those only who may
choose to take bonds. Again, by selling but small
portion Of bonds at time you accomplish two objects
the advantage Of the road first the market does not
become oyer.stocked glutted with bonds and sec.
ondy, every mile of the road that finished will in
the profits of the company and consequently the
value OF It's bonds. So that when you 90 into the
ket a second time you obtain a much better price for
t0 ma ba nuca
the wiser TO retain the bonds the hands of the
COMPANY ITSELF in all cases, except where they are sold
to capitalists who will hold TO them for the profits
arising from them-not throw them into market and
perhaps deeply nure the credit of the company there.
by. 1t almost certain that sale to an iron monger
in the first place, would have TO be made greater
rate Of discount than if made capitalist or broker
for the that the hrs purchase would be made by
the merchant manufacturer with the expectation and
Intention Of again selling TO such broker capitalist
OF course such first purchase would be made at such
great rate of discount would enable him make the
second sale without loss. Ii would often happen also
that if merchants manufacturers were to purchase
the bonds they would be able although inclined
to do, to hold to them their business would COM
pei them TO make transfers even at sacrifice. They
would be thrown into market at time which might
be proptous sold at very great discount and ruin the
credit Of the company.
We will now look to the third proposition. AS / un
dertand the whole substance and drift of the arguments
of His Excelency, they all tend to establish the propo
sition that the company will manage its affairs
break down. The company ask the passage of this bill
III injury results from the same, the stakeholder.
Will be the losers-those who are now asking its pas
sage cannot suppose that men well versed in fnan
cal affairs, the directors of this company are woulC
come before us and deliberately ask for The passage
law that would produce their own ruin. But admit
for the sake of argument that these oversight
ed-that the Governor is in his suppostons
relation the effect of this act and that even the wors
consequences which he prophesies will ensue. VIVA
then The present company might fail and be forced
sell and transfer the road and all the corporate property
to second and more wealthy company, which would
sustain and complete the road. In the intermedat,
time, all the money which the company may obtain viii
be expended IN midst, for iron that will be lait
down upon the road, which becomes a permanent i'm
Proyement among us-enhancing the value of our land
and increasing the prosperity OF citizens-givng
great thoroughiare to market, for all the surplus
products OF the rich and productive country through
which it runs The blow, IL it comes predicted vii
fall, then, upon the stockholders of the company,
upon the community atlarge 1t is true that wher
counties cities have taken stock the burden will al
upon the whole people of such county city. shall
not stop to defend the acts Of municipal corporations
taking stock in railroads, for always entertained am
expressed the opinion that the policy iadvised
forcing minority to bear their portion of taxation 70
such purpose, because the majority wiled IT, But thi
argument, and confess il was serious one with me
loses all its force il the suggestion oil His Excelency
based upon the true doctrine OF the law. What is il
That cities and counties having taken stock in roads
when the charters did give the directors the power
now asked for that it follows that the granting tn
powers now asked for and the exercise of these power
by the agents directors Of the companies will releas
all right OF action which such companies may posses
against the cities and counties for stock subscribed
Without admitting denying the legal doctrine her