The Portage County Democrat. [volume] (Ravenna, Ohio) 1854-1868, 1863-04-01
REPORT OF sENATE's COMMIT
REPORT.

1SL. 10 Ine IllSG prOpOSiIlOH, neGner
Ohio can authorize the sale and closing of any
part of said canal, without violating the i'm
piled faith of the State to Pennsylvania
your committee reply, that Ohio had an un-
doubted right to sell the stoek in the canal
but your committee are inclined to doubt
whether she can authorize the closing of any
part of it without violating the faith of the
State implicitly pledged to the State of Penn
sylvania.
I'd. To the second proposition, By what
authority the Directors loaned said money to
said Railroad Company, and on what security
your committee report, there is no express
authority; but suppose all companies, having
a fund on hand, have a right to loan it. The
money was not loaned directly to the Rail-
road Company, but to the Directors of it,who
gave their individual security for it. This
individual security was subsequently given
up, aud the bonds of the company, equal in
amount to that loaned, were given, and the
same amount in the stock of the R. R. Co.
Sd. To the third proposition, " Whether
the money has been refunded and if so, how
and where?' Your committee answer it had
not been refunded at the time of the sale of
the State stock, but in January last, after the
sale, a dividend was declared of $4,000, and
the dividend declared on what had been State
SlOCk, WIS PAID W bilG OOlu kldilN
the stock. If the money on hand at the time
of the sale of the stock, passes 10 the pur-
chasers of the stock, the bebt is cancelled by
such sale.
4th. To the fourth proposition, Whether
the same persons, or some of them, acting as
Directors of the Canal Company, in loaning
! it, were not also Directors or officers of the
Railroad in borrowing it, and who, if anybody,
| acted in both capacities?'' Your committee
report that at the time of the loan, Jacob
| Perkins, David Tod, Charles Smith, Freder-
ic Kinsnlan, and Charles L. Rhodes, were di-
rectors in the Canal Company, and Jacob
Perkins was President, and the others direct
ors in the Railroad Company.
9Th. TO the fifth proposition, "Who sold
said canal stock. by what authority-who did
they sell it to-and for how much?" Your
committee answer the Fund Commissioners
sold the stock of the State. which was $420,-
COO, to Charles L.. Rhodes, Vice President and
| Superintendent of the Railroad and Di-
rector in the Canal Company, for $35, 1000
1t was sold by authority of joint resolution
of the Legislature, authorizing the sale of all
State stocks, passed April II, 1858.
9th. To the sixth proposition, We're any
of the persons selling it interested, as stock
holders, bondholders, or Trustees in the COM
I pdIly puECIldSllS iCpOt1
that Mr. Tayler, Auditor of State who is one
of the Fund Commissioners, who sold it. is
one of the Trustees of the Railroad Third
Mortgage Ronds. He has never acted as such
however; his co-trustee having done all the
| business. He is also a stockholder in the
Railroad to the amount of $500-but from
the facts before your committee, though they
differ as to the policy of the sale, they have
no doubt of its legality, or of the honesty o
the intentions that prompted it.
/ 7th. To the seventh proposition, Wheth-
erthe purchase money has been paid and the
stock transferred" your committee answer
The money has been paid and the stock trans.
ferred to Charles L. Rhodes, and by HIM tt
the Railroad Company Directors. a9t
4 9Th. To the eighth proposition, Wheth.
er the State of Ohio, having been stockhold
er at the time water leases for mill privilege.
were granted, would not be liable in damages
if said canal is closed,' a majority of thu
) committee think not.
9th. To the ninth proposition, Whethe
the President and Directors of the Cana
F Company are not a.so President and Director
of the company that have purchased it,
your committee say: This is fully answered
: in the answer to the fourth proposition.
10th. To the tenth proposition. "Wheth
l7Cl IuOS nave tdIoSu 1uC tOliS 81 IL Oil III
canal as to drive the business from it, for tn
: purpose of breaking it down and giving it
power and usual business to railroad o
: which they are officers and directors" you
committee would say that this proposition
involves question of motives, which the.
, they are not competent to decide. We retur
! the testimony to the Senate, and each Sena
tor, on examining it, can form an opinion a
: well as your committee. Your commtte
i have no hesitation, however, in saying tina
after 1854, when the report of the Cana
Company says, " the controlling interest i
the canal was held by those who had dee
:, interest in the Cleveland & Mahoning Ra
|. Road, - the tolls were raised. '3sH fa
: Your committee having now fully answer
ed all the propositions submitted to them, b
: the Senate ask to be discharged from the ful
: ther consideration of the subject.
S L. v. BIERCE,
&c G. HARSH,
: $40 JNO. JOHNSTON,
: ISAAC WELSH,