Marshall County Republican. (Plymouth, Ind.) 1856-1878, 1870-12-15
A Magnificent Job.

| The State of Indiana Is threatened With
one of the most enormous jobs that has
been attempted to be put through for
manv years. The history OF the case is
briefly IA follows: In 1928 80, and later,
Indiana was a victim of the prevailing
maladl OF internal improvements. Among
other works undertaken was the Wabash
and Erie Canal, to construct which the
State issued bonds to The amount OF $l0.-
100000. There were other State bonds
outstanding, and, in lS45, the State sunk
under the load, and stopped payment oi
interest. There bonds bore interest, some
nj 6, aud others at per cent. The canal
was not completed. and In those DAYS il
was considered that IL il could be finished
it would rapidly pay for ITSELF Blu. the
| means and credit OF the State were ex-
hausicd Affer a long negotiation between
the State and its creditors. il was agreed
that one-half the outstanding bonds should
be funded in 3 per cent bonds, and
one-half in canal scrip. bearing per
cent interest, and that The accrued and
| unpaid interest should be funded in bonds
and scrip, bearing IL per CENT inicrasi.
Under this agreement the State conveyed
the canal entire TO the Trustees appointed
by the holders Of canal scrip, and also
certain lands in Georgia. and several town
lots in Brooklyn. n. Y. The State as
suincd 10 pay the bonds. and was released
By Its creditors from all responsibility for
the canal scrip. the canal Itself being in
satisfaction OF that half Of the debt repre-
scented by the canal scrip. In other
words, the State gave one half its debt.
the canal and other property. The new
holders OF the canal, however. never con
I,<lo - a.. - - LII n.
been paid on either principal or interest
OF the scrip. The original debt was $l4.-
00O, COO, one half or which was paid by 8
per cent bonds, all OF which the Stale has
siLce paid off, principal and interest The
holders of the other half of the debt ac-
cepted the canal as better security than
the State bonds, and us it has turned out,
made a bad bargain. This 81. 1000, 600,
with fifteen years accumulated interest,
now amounts To between $l5,00C,010 and
| Sl6,O00,O0O. Ii seems that the State, IN
making the bargain. pledged itself To do
all acts tending 10 aid the same, and TO
avoid all acts calculated TO impair its
business, diminish IFS tolls, or render il less
profitable. 1t is now claimed that, several
years later, the Safe, by general act. per-
mitted and encouraged a system OF rail-
ways which have completely absorbed the
transportation that might have other
wise been done on the Canal
The claim now presented is. that the
State shall take back the canal and pay
this accumulated debt and interest.
The danger which threatens the State
OF Indiana Is that the Legislature will
yield TO the Establishments Of the lobby
holding sixteen millions Of dollars worth
of scrip, now utterly worthless, but to
which the Legislature can give a value of
100 cents on the dollar. The power of
this lobby has been felt in the State cleo
lions. There seems to be general under
standing that the Democratic party, in
return for material aid, is to pass the law
taking back the canal, and assuming the
debt. The Legislature elect is Demo-
cratic. and the holders of the canal scrip
propose, this winter, to make demon.
siration in force at Indianapolis to induce
the State Government to repurchasc the
canal Ii they can do this, they will
realize sixteen millions Of dollars from
the people OF Indiana, and can well afford
TO pay one-half that sum for the legisla-
ton. The men in the State who advocate
this job we suppose, intend TO extepuate
The offence by proposing 10 club together
with the Fox ana Wisconsin river im>
provement and the New York canals, and
induce the Government of the United
States to purchase the canal. and reim-
the State of Indiana for its loss by this
corrupt legislation. Tribune.