Marshall County Republican. (Plymouth, Ind.) 1856-1878, 1871-09-07
The Bond of the Kankakee
Draining Company.
Cor. Bakers reply to the Letter of Colonel
@. 4. Pierce.

PLANTATION of his action in approving the
bond OF the Kankakee Draining Co.:
EXECUTIVE DEPARTMENT..
INDIANAPOLIS, IND, Aug 16. 1871.
Hon. G. A. PIERCE, Valparaiso, Ind
Slr:-l have the honor to acknowledge
the receipt of your communication of the
18th inst, informing me that there is some
surprise manifested at the amount of the
bond required by the Kankakee Draining
company, many thinking the sum named
insufficient, and requesting response
from me on that subject The Supple
mental Drainage Act, passed at the last
session of the General Assembly, having
been accepted by the Kankakee Valley
Draining company, now constitutes part
OF the charter of that corporation. The
second section of said Supplemental act
requires every Draining company, whose
main line exceeds 90 miles in length (bc-
fore it can collect assessments or issue
bonds), to give bond to the State of Indi-
ana, with penalty and surety, to be ap-
proved by the Governor of the State, con
ditioned for the faithful application q
any and all moneys achich shall come into
the hands Of the corporation, to tie legitimate
purposes Of the corporation"
The same section requires the corpora
ton, on the 18th days of JuIe, Septem-
Der, December, and March of each wear,
to file in the office of the Auditor of State
a statement of the condition of the finan-
cial affairs of the corporation, &C., and
makes it the duty of said Auditor, upon
complaint of any party interested, sup
ported by affidavit, to investigate, at any
time, the affairs of the corporation. By
the same section the Governor may at any
time, require the corporation to give addi-
tional bond, at his discretion, Pr0rided,
that the liability of the surety on anv bond.
or bonds, required by this act, shall be re-
stricted to breaches of the condition OF
said bond or bonds, occurring during the
in office of the members
of the Board of Directors in office
at the time of filing of said bond or
bonds, and until their successors are
elected and qualified Said second sec
ton further requires that each successive
Board, when elected, and before assuming
the duties of their office, shall file new
bond
l fixed the penalty of the first bond at
S240,000 and intend to increase the
whenever money shall be likely
to come into the hands of the company,
requiring such an increase, and | have
made such an arrangement as will keep
me informed as to what moneys shall,
from time to time, come into the hands OF
the company. There are but two sources
from which the company can receive
money. The one is for assessments on
the lands to be drained; the other from
the sale of the bonds of the company.
The officers of the company assure ME
that for the present they intend to resort
to the sale of bonds; but, if
they shall change their policy they can
not collect assessments without their pro-
ceedings becoming matters Of public no.
toriety, thereby enabling me to require
an increased bond, sufficient in amount to
cover the proposed collections. The
with view to selling bonds,
has caused the form of a $1,000 coupon
bond to be Autographed, and have caused
/ ,010 blank bonds, of $1,000 each, to be
printed from this lithograph, ready to be
flied up and executed, and, amounting,
when executed, to $1,010,OO0 The litho-
and printing was done by Ed
ward Mendel's Steam Lithographing and
establishment, located on the
corner of State and Washington streets,
Chicago. Mr. Mendel has made and filed
in my office an affidavit, written upon one
Of the said blank bonds, by. him so print
ed, setting forth the whole number of
such bonds so printed as aforesaid, and
that the transfers and plates from which
The same were printed, have been effaced
and Obliterated, so that no more like I'M
pressions can be made from them, and
said Mendel, in said affidavit, further
swears and AYERS that he will make no
more impressions of said bond without
The concurrence and consent, in writing,
Of the Governor Of the State of Indiana
md said company.
Tho how roto.raI Oft0 g
plank bonds thus printed, representing,
when filed and. executed. 100000, and
nave delivered the remaining $40, repre-
'enting $4,000, to me- The officers of
he company stand pledged to me that no
bonds of the company shall be issued, or
out upon the market, except by using the
blanks thus printed, or the use of similar
blanks which may hereafter be printed,
With my written consent as aforesaid;
md, whenever the company desires to ex-
cute and put upon the market larger
mount than the 100000, for which they
lave received blanks as aforesaid, they
must come to me for the blank bonds, and
aAhoe SA'N w ehO EtdlC du UOuu,
With approved security, conditioned ac-
ordlng to the Supplemental Act, in a sum
quail to the gross amount of the blanks
hus withdrawn, with 90 per cent. added
0 such gross amount. The object sought
y me to be accomplished by this arrange
nent, and which, believe will be accom-
'lished thereby, is to always have the of
icial bond or bonds of the company ex-
eed by 20 per cent. the amount of money
n the hands of the company. Twas urged
y some of those interested in lands to be |
ffected by the doings of the company, to
xact bond with penalty equal to |
Ouble the amount of the estimated cost |
f the entire work Such a bond (the es-
mated cost of the work being, as I am
about 81 SOC, ,OO0,) would be un-
recedented The bond of the Treasurer
f State, for instance, is s150,O00, but the
isbursements of that office for the fiscal |
ear ending with October, 1870, largely
e. Onn n00