Evansville daily journal. (Evansville, Ind.) 1863-1866, 1865-11-17


1916, and the supplementary Act of
January, l847, which taken together,
constitute what is generally known
as the "Butler Bill" By the compro.
mise and settlement as finally concluded
in the supplement Act of 1877, the
Wabash and Erie Canal, together with
the lands which had been granted to the
State to aid in its construction, were
transferred, the canal in perpetuity, and
the lands in fee simple, to certain trus-
tees IL, trust for the bondholders, in alb
solute payment and discharge of one
half the principal and accrued interest
of the debt, which half thenceforward
and forever ceased to be q liability
against the State or charge upon her
revenues The bondholders upon their
part agreed to make such additional
subscriptions as might be necessary to
complete the canal to Evansville, esti-
mated at eight hundred thousand dol
lars ($800000), which condition was
complied with on their part, and the ca
nal so completed. For the other half of
the debt, principal and interest, the
State was to issue to the bondholders
certificates. Of Indebtedness or stock.
Upon such stock issued for the principal
sum, the State was to pay interest at the
rate of FIVE per cent. per annump semi
annually The interest in arrears from
l841 to lS47 was. funded, and interest
on the aggregate thus funded was calcu-
lated ct the rate of two and half per
cent per annum from January j, lS47,
to January l, 1853, and added to it, and
for the whole amount stocks were issued
bearing interest at the rate of two and
half per cent per annum from the lst
day of January, 1858, payable semi-an-
nualIy. The arrangement was a COM
plicated one, involving many details
which it is not necessary to give here,
and | shall only present very brief
outline y rsl - ca#
The Act Of. 1916 was, in many impor-
tant respects, modified and amended by
the SuppIem entary Act of 1847, and the
two together constitute the basis and
consideration upon which the creditors
release the State from all liability for
one half the principal and interest of
the debt. .a.-s .,.l.,F -. s.....- ..5.....
The first section of the act of 1876
concludes in these words: 'i..l.....a
"Assd provided further, That if the
revenues Of the State. up to the first
day of January, 1853, to be derived
from property tax of twenty Eve cents
on every one hundred dollars of value,
and a poll tax of ssventy-ive cents,
shall not, by reason of the taxes being
paid in six per centum treasury notes,
or from other causes, be sufficient, after
defraying the current expenses of the
Government, to pay said rate Of inter-
est of. two per centum, then and in that
case, the State shall only be required to
pay, up to said first day of January,
| 1868, such rate of interest as the par
funds in her treasury, derived from the
taxation. aforesaid, shall enable her to
do; which shall be paid and distributed,
pro rata, on the principal specified in
such certificate of stock, and the deficit,
with six per centum interest per annum
from the simeit became dae, the State
shall and will make up and pay to the
holders of such certificates on or by the
d first day of. January, 1882 sa 4ef
1t will be perceived that this section
does not, in direct terms, make a levy
of twenty-five cents on every one hun
dred dollars OF ryaluef and of seventy
five cents on each poll, but it evidently
/ proceeds Upon the hypothesis that such
4 tax shall be levied and continued for
4 series Of years. The ] act of which
this section is a part was reported to the
Legislature by. Hon. Henry Secrest,
Chairman of a Special Joint Committee
4 to whom the subject had been referred.
He accompanied the bill with report
from the Committee, from which, ex.
tract the following passage; ,.m,a,.. "A -
Shy reference to the tables appended
to the second proposition of Mr.. Butler,
| twill be seen that, if the taxables. in
the State shall increase at the rate oil
100000 a year in value (which is a
moderate estimate, a tax Of. twenty five
cents on'the hundred dollars, and sew
enty-fve cents poll, will afford the
means Of paying the State expenses,
absorbing all the six peocent. treasury
notes, and paying two per cent. interest
upon the public debt up to-the year
4 1885, and from and after that time pay
ing the State expenses at two and a
half per cent. upon the entire funded
debt of the State, including back inter
/ est and DEFICIENCIES of interest; and moi
only so, butFthat7 the aproeeedss of the
! same tax would, in addition, produce
an annually increasing surplus, to be
set apart for the absorption of the prin.
cipaE Of the public sdebt-whicha surplus
for the single year 1880, would be about
$40, 000" ,,---
From this it clearly appears to have
4 been contemplated by the committee
that a continuing tax of twenty-five
cents on every one hundred dollars, and
seventy-fve cents poll, was to be as
4 sessed, for the payment of the principal
and interest of the debt, and reference
is made to certain tables which had
been prepared by Mr.. Butler, going 10
show what would be accomplished BY
such tax, estimating the increase Of
the polls to be six thousand per year,
and the increase of taxable property at
4 six millions of dollars per year, and car
| rying the calculation as far down as
+ 1850 Mr.. Buffers calculation, howev-
err, turned out to be greatly erroneous,
inasmuch as the ordinary expenses of
the State Government were estimated
too low, and the increase of taxable
property from 1846 to 1864, averaged
! nearly twenty-one million of dollars, in
I stead of only six millions per annum.
On the next day after the passage of
this bill, and apparently in pursuance of
its provisions, the Legislature passed
an Act making q general levy, for State
purposes, of seventy five cents poll, and
twenty-five centsson each one hundred
dollars worth of property.
In the supplementary act of the next
year, 1847, the following provision will
lsbe found contained IN the 18th section
| And Whereas, doubts have been
suggested, on the parts, of some CHI
last mentioned persons foreigners hold
ing bonds) in respect of the matters
hereinafter mentioned or referred to,
which doubts may operate prejudicially
to the operations contemplated by the
said recited Act, and it is therefore ex-
pedient that the. same be removed Now,
| 10 demonstrate the good faith of the
State of Indiana, and for the removal of
such doubts as aforesaid, and with the
view to create general confidence in the
arrangements made in the said recited
Act by the State for the liquida ton of
its debt:
+ /" Be it enacted, That the tolls, rev.
enues and profits of the said canal and
its appurtenances, present and future,
/ and the monies to arise and be collected
j by and from the sales of the lands and
premises contiguous thereto, and in the
said Act more particularly mentioned
and described, and the personal tares to
be levied towards the uavment of the