The Richmond palladium. [volume] (Richmond, Ind.) 1855-1875, 1861-03-07

s
Commission. consisting Of Jeha s Elliott.
VIM. Otto and Mormon Eddy. to investigate
all unsettled claims held by the State agains,
former officers Of the State. This Commis
sion has recently made a report 10 the Leg
islature. from which we make the following
extract
suP'T. LARRABEE. AND TOWNSHIP LIBRARY
FUND.
DR.. Newland. in response to the inquiries
OF the Commissioners states that he pur.
chased bill OF tie indianapolis and Peru
Railroad Company, pay able in New York.
Tor twenty-three thousand dollars. to pro-
vide funds at that place. to meet the State
debt. falling due July LIST. 1854 DR.. &. w.
II. Ellis, the late President of the Indianap-
oils. Madison and Peru Railroad Company,
borrowed Of Gen. James p. Drake, then
Treasurer of State. various sums of money,
amounting IN sli 20 twenty three Thousand
dollars. for which. at the close OF his (Drake's)
term. he gave him the note OF the Company.
endorsed by the Directors. and payable. he
Eli } thinks, ia New York. 9Th of June.
1858. which note or bill was transferred by
General Drake TO his successor, DR.. New
land
With this discrepancy as to the origin OF
the bill or Indebtedness. these gentlemen
harmonic in their statements in all other es-
sential respects. " The note . was paid at
maturity, and in the meantime tbs Madison
and Indianapolis. and the indianapolis and
Peru Railroad Companies consolidated under
the name of the Madison. Indianapolis and
Peru Railroad Company"
IL \.
dated Company. proposed TO arrange with
Treasurer Newland the (S23.OO0) twenty
three thousand dollars, and also the State
taxes, then due from the old Madison and
Indianapolis Railroad Company, amounting
to (SS.o03 04) eight thousand aud three
dollars and four cents. and from the old
Peru and Indianapolis Railroad Company,
to ($775 OO) seven hundred
and seventy five dollars, making an aggre-
gate of )s32. .oO0) thirty two thousand Col
lars. Newland accepted the proposition.
The Board Of Education had made =
upon the Treasurer Of State for
(Sl48.0O0) one hundred and forty eight
thousand dollars to purchase Township Lii
braries. and directed him to place the funds
in the hands of John NJ. Lord. Agent of
State. in the city of New York.
On the Goth day of July. 1854. NewIand
for the purpose OF providing in part for the
Library Fund as required, drew draft on
DIR. Ellis. as President OF the Railroad Com
Pany. in favor Of John n. Lord. Agent Of
State. payable on the first Of August, 1854
At the banking house Of Winslow. Lanier &
Co., 10 the city Of New York. for said sam
OF $50, 900. and transmitted it to the Agent
OF State.
Ill.,. l-.c.s =. S...xl -..-.4S..l..
turity. But Professor Lsffa Bee. SaperinfSn.
dent OF Pablo Instrueaion. who had pus-
Q1sased portion of the books for the Lii.
braries. from the Messrs. Harpers, met DE-
Ellis in New York and they went together
to the Harpers, with whom DIR. Ellis made
an arrangement that they should take the
notes of the Railroad Company, payable on
time, for the $4,000. in part payment for
the books purchased by Larrabee. and in
that way the draft was taken up without
being protested. The Railroad Company
executed several notes Of ($4,-
O0O) four thousand dollars each, to the
Nessrs. Harpers. halt OF them payable in
nine months, and the other half in tw elve
months from the date Of the transaction,
by certain Directors of the Com.
Dany. These notes did not bear interest
until their maturity. and Harpers required
the interest to be paid, or provided for. and
tor that purpose. by the assent of Professor
Larrabee, the amount of the interest ISL
96o) one thousand nine hundred and sixty
dollars was charged to the State in the bill
Of Harpers. and nsequently paid by the
State. DIR. Ellis. however, at the time prom
Ising that he would pay the amount of in
terest to the Treasurer OF State, which was
never done
1, is proper TO say, in reference to the par
lies to this transaction. and especially to
Professor Larrabee, that we have no evi.
ience that be or any officer of State was in
any wise benefited. personally. by the ar.
angement DR.. Ellis is explicit on this
point. % He says that no officer or agent
was favored or sought to be favored there
BY" that for himself. as President of the
Railroad Company. he was seeking TO ex-
ricate it from its difficulties. by gaining time
IN its liabilities. but that Larrabee, from con-
alterations of personal friendship, and it is
presumed, from q desire to make available
he whole amount approp opriatsarb rby~Ahs Bossd-
IF Education, assisted him in his undeItak-
ng.
1t is understood that the Messrs Harpers
lave never realized but portion OF the
lmouns due from the Railroad Company,
md will not. probably, be able to collect the
-esidue.
The draft on the Railroad Company had
natured at the time of the arrangemsn, with
he Harpers. by which the President of the
Company was enabled to take it up from
he State. 1t was not under the control Of
Larrabee, and it was an abuse of his office,
to consen. that il should be paid to the Har-
pers. BIZ time notes TO them, they charging
The State with the interest for the time the
notes had to run. 1t was doubtless done
under the belief that the Railroad Company
would pay the amount Of the interest TO the
State, and by the arrangement the State
was realizing a. the time the amount Of the
draft On Ellis, less the amount 50 charged
for interest a@ -
The amount of the interest (eI .96O1 one
thousand and nine hundred and sixty dol
lars, is doubtless valid claim against the
Railroad Company From its embarrassed
condition no hope is entertained that pay