Weekly Indiana State sentinel. [volume] (Indianapolis [Ind.]) 1853-1861, 1855-07-12
TREASURY DEPARTMENT.

Coanptroller's Office, June 19, 1855.
Hon. JAMES GurERIK, Secretary Of the Treasury
SRI return the papers handed to me
yesterday, in the matter of the application of
his Excellency, JOSEPH A. WRIGHT, Governor
of Indiana, requesting that the amount re-
tanned by the United States of the three per
cent fund to pay the interest on certain State
bonds, be refunded.
The following memorandum is submitted.
By an act of Indiana, dated January ~, 1886,
session laws, p. l6, section 20, the Lawrence
burg and indianapolis Railroad Company
was authorized to receive the bonds of the
Company to the amount Of $4,000 with
interest at the rate of 6 per cent, payable
semi annually, and the principle in 20 years,
from January 1st 1886, to be secured by
bonds and mortgages on real estate, OF the
full value intended to be covered, exclusive
of Improvements.
The Directors were authorized to assign
such bonds and mortgages to the State of In
diana 20 Section By this section, the State
Treasurer was authorized on receiving such
bonds and mortgages to an amount not less
than 100000, to issue State bonds payable
in 20 years with interest semi-annually at 5
per cent.
27h Section. By this section power is given
to the State Treasurer to ascertain the validity
and safety of bonds and mortgages.
18th Section. By this section the State re-
serves the right to collect the principal, in
case of failure to pay the interest semi
annually.
29th Section. BY this section it is stipula-
ted, if the Company pays the interest on the
State bonds it may collect the interest on
the individual bonds and mortgages.
3Oh Section. BY this section, the bonds
and mortgages, when paid. are to be entered
satisfied and surrendered
31st Section. By this section the Company
was to defray all expenses.
32d Section By this section the Company
was to pay bonus of one-half of one per
cent. on the amount Of the bonds issued by
the State.
The State of Indiana issued her bonds,
payable to the Morris Canal and Banking
Company, New jersey, under the provisions
of the act mentioned.
A copy of No, 81 for $1,000, will accom-
pany this.
Of these State bonds thus issued, and thus
secured to the State of Indians by the Law
renceburg and indianapolis Railroad Compa-
ny, the Treasury Department holds in trust
Sal 600 for the Chickasaw Indians, under
public treaties and laws; as binding on the
State of Indiana, and to which she is as much a
partyas any other State in the Union. Ii is said,
in argument, that the United States should
not exercise their sovereignty, and withhold
the three per cent fund, and apply it towards
paving the interest on the bonds thus holden
in trust. LIST, because "they purchased the
bonds in open market and therefore they
have no claim to be considered in any more
favorable light, than an ordinary purchaser
or speculator."
In answer, it may be said, that Indiana
invited the purchase by putting her bonds
into the market generally, without any ex-
clusion of the United States, and by pledging
the good faith of the State to pay them, and
that the withholding the three per cent fund,
is specially required by joint resolution, ap-
proved March 8, ls45. [yol. 3, p. SOL
End. Because the United States by the |
compact, agreed to pay three per cent on the |
sales OF the public lands, to make roads, and
the State Of Indiana pledged the fund to the 1
respective counties.
Two answers may be given: lst. The act
referred to bears date on the 10th of Nav.
1852, which is subsequent to the time of
and applying most of said fund
"a. The State of Indiana knew that the
fund had been carried into the Treasury from
lime to time, and paid to the Indians, in dis
charge of treaty stipulations when the act
was passed.
The whole amount withheld from J uly
1912, is 1927 70.
1t is urged as reason for making an appli-
'ation, to have this money refunded, that the
construction of roads in Indiana has been.
md is heavy burden on the people
submit that the people of Indiana are
more benefited by the construction of the
-awrenceburg and Indianapolis Rail Boad
han they could have been by having the