New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1857-06-03
,soo.s al oao o7o esq s;l $50

The State of Indiana is involved in a controversy
with the stockholders Of the Wabash and Enc Canal,
which destitute of interest for the pubic at large
1t appears that about ten years since the State having
embarked imprudently in internal improvement
schemes was on the of bankruptcy and, indeed,
was bankrupt the extent of not paying the interest
on its debts or the salaries of it, officers. All the
good citizens Of the time were apprehensive that it
might be driven to follow the pernicious example Of
Mississippi, which was then reapiDg world OF exc
Grafton from lite creditors. In this dilemma, the bond
holders of the State came forward through their
agent Mr. Charles Butler, and proposed prospective
arrangement which il was thought would save the
honor of the State and ultimately the rights of
those to whom il indebted Ii was proposed that
the State debt should be divided into two equal parts
one Of which should be based in the form of new
stock on the immediate and responsibilities
of the State and the other the properties, tolls
and income Of the Wabash and Erie Canal. The
proposition was carried into effect by act Of the
Legislature, passed in January, 1916, and subss-
auently improved and amended in lS47. An in
stantaneous relief of the State and revival OF it,
credit was the consequence of this proceeding
In acceppg the tolls and revenues of the Canal as
security for one half their debt the creditors were
influenced by several considerations: first, that the
Canal was then almost the only work of internal i'm
proyement in the State second that all the represen
taions of the Governor of Indiana and other officials
as well as of private and competent individuals, con-
CURED in the view of its probable value; and third,
that the act creating the adjudgment guaranteed it, in
the strongest manner from every kind of moleStatiOn
interference or detriment. joint trust consisting of
three trustees chosen respectively by the State and
its creditors made for the management and admit
stration Of the whole business. For some time after
the transfer of the Canal to these trustees the arang
,,eeut promised the most satisfactory results. The
Creditors having advanced some $500 900 additional,
70 complete IT, had caused the work to be prosecuted
with economy and vgor, and argued from the annual
increase of income from the parts already finished,
that there would be still larger increase when the
whole was finished. This prosperous outlook continued
TO the veal 1852 when the revenues oil the canal
began to take turn the other way. by 1891, the
decline of the receipts amounted to the enormous sum
Of $4Ol35 of course they opened their eyes 70 such
prospect What was the cause OF tins Iah tne eteu
itors OF the State naturally inquired Iney saw 'na'
there was extravaganza or miseonuu - "e na;
,oemept of the canal: they that no extra repairs
had mt them 10 an unusual expense they saw tnat
the land-funds belonging to the canal were as Vsuaoe
as ever they had been they saw thar tue copeuiion
of the Wabash River had actually decreased WINE
The nopustion and the trade Of the immense district
drained by the canal had largely augmented In every
direction Yet they did not have 70 90 iai 70
the real cause Of the inadequacy OF us ~,
the State il appears, had in the mean ll,no
an estersye system of railroad communication wnich
covered the entire region of the canal anu afs" On "
most lucrative commerce. In tins view Vi ;Ie
the creditors turned upon the Sta,e anu sau ue'
had DESTROYED their security, and that they must 100.
- !, for come remedy or some measure OF redress
memorial addressed to the last LEGISLATURE oy 0o
mttee of the stockholders, from when We get 'nese
facts, Gays: -,
"At the time constituents acceP.e. tue Eana
A security, thereby dischsrging the STATE wa lhs
gre. enterprise OF the State, without competitor ana
without a rival but it is now perfectly
from one end TO the other IN netw1in u
The whole region Of country on N1 1a &
IA tanned nv them: its local business ana It's through
busipe 50 are alike disturbed ana ye'' a. Tvs
more recent fate has been, the future 70 Pc
come still more disastrous In s1V H. evsnSas 81 ,hs
security profered TO u.s. in beu oil tne tne
Stat has beep essentially changed ana that oy the
Authorization of the State. The Canai Is, Vnluany
70 longer tie same work. Its banks snu iohs are Tue
same; the same waters continue ~ NJ i've unon i,
the same men and women, perhaps, nv. uPou ,.s
b.nLs I'm, that comprehensive and Iucrsu'e trade,
which was the life Of it-that raee mhion ollsnaly
induced the Legislature TO undertake ~
and the expectation of which alone maze security
auu .ne bs been spirited away. 1t no longer
" ~" i VS. or A. il promised to be, and 1t cannot
be restored"
This is the question: How far is the S'a'e-havias
by means of its legislation sappedthe security formerly
nedeed TO the stockholders-haole 10 make good the
famsSe done Between individuals there could be no
LIT a. 70 the answer If debtor should transfer TO
his creditor in part payment of debt valuable
natenrieht ON the condition that he would do nothing
70 impair the value of the pstent-nght and should
ben proceed TO get out another patent of pretty nearly
the same kind, but more effective he would be re-
gor5e5 universally as responsible for the infringement
Of hi. arrangement If the State of Indiana surren-
dered the revenues of the Wabash and Erie to get
I'D Of Il. old debt, and has since by its own