Daily State sentinel. [volume] (Indianapolis, Ind.) 1861-1865, 1862-05-31
The state not Liable for the Fraudu-
lent Certificates al stock issued by

StoteEs
ED SENTINEL: An article in the Sentinel of
the 2yth instant. under the head OF The Slower
Case" with which is copied an article from the
New York Herald is calculated not only to
Cause an unjust apprehension in the minds OF the
people of the State respecting their supposed La
bllity for the payment OF what's called an 'irreg
ular issue OF 1--WE per cent bonds OF the State OF
Indiana. but also contains some erroneous state
ments respecting the officials OF the State that
seem 10 require correction.
In the first place there FIVE per cent.
bonds OF the State which the Agent could posi-
bly, corrupt. bat there five per cent. State
stocks. aud &c i false certificates OF these batter
thIt have been l>Sued. ana cOne erning which the
pubic mind j. At present exercised
An examination OF the law authorizing and
governing this class of securities will dispel all
fear Ol liability OF the State for the payment OF
those Ease certificates. The 4lh section of the
act providing for the funded debt OF the State.
passed January 10. 1916 found in the supple
mentary act passed. January p, 1871. under
Amendment h. declares that .the stock ere
atcl pursuant 10 tins act shall be transferable
only IN the CITY OF Nes York and books TO be
provided Tor that purpose by the State,
bat no transfer shall at any time be permitted.
except on the surrender and cancelment OF the
outstanding certificates"
The stock was erected By the surrender by the
holders OF the outstanding bonds OF the State
BY the surrender OF the bonds the holders be
came entitled 10 certificates Oi stock by the act
created. one half % which Was charged upon the
canal. and u be paa ONLY by It's tolls and other
incomes, ami tie other half are % De paid by
the State. 10 beng this latter class OF stock thar
false certificates have been issued upon the
canal stock neei not be further noticed
The law required the State stocks to be evi.
Geuced by eertheste~. signed by the Treasurer
ADD Audgtvrof Safe, attesiei by tie seal OF tie
State and 70 be counterSi gned b, the AGENT Il
the State. and they could only be issued in place
OF Stgie bond 10 be surrendered by the holder
The Agent could not by law issue an original
certificate. unless IL holder OF "A bond or
bonds to be ~ him at the time surrendered; nor
could Tie 10 Ger ot any certificate whether true
false. transfer the same ia any manner except
Ia tie city Of NeN York upon the books OF the
State. IL will be perceived that there cannot be
innocent holder OF State stock certificate
issued 10 him without having surrendered bond
of the State for IL. certificate Of stock orisl
mating IA the surrender OF such bond
Not only l. the mode OF transfer of the GER
t6eates of stock limited by the act before cite-i
but FORM OF the certificate is prescribed by the
act, and upon the face of the certificate il j de-
clsred Ia be transferable upon surrender IN the
city Of New York in books provided for that
purpose by the Agent of the State there resi-
dent I" The aeI~ under which the stock j. ere..-
ted Is also referred 10 the certificates so that
10 person can claim 10 be an innocent holder OF
the certificates unless the same has been made d.
rectly % him for bond or certificate surrendered
and when the agent issued 10 any p-.fson eertif
ieate or certificates OF stock without such person
certificates therefor. he was acting without an