Marshall County Republican. (Plymouth, Ind.) 1856-1878, 1876-12-14
Question No. 8.

To His ELceLency, Thomas A. Hendricks, Governor:
The testimony in the case Of William c. Smock vs.
T. A Hendricks and others shows that the Water
amount of $500 was subscribed.
Thomas A. Hendricks, William Henderson, aud
others, made directors.
No part of the stock subscribed was ever paid. On
the i7th day OF May, 1870, Thomas A Hendricks aud
the other directors in their individual capacity not
In au ohcai capacity as directors, made contract
with the Canal Company by which il agreed:
1. That the Canal pany was to convey the canal
TO the Water-works Company.
2 The Water-works Company was to accept the
canal I'm tu payment and satisfaction for $500 0Gu OF
its capital stock" the stock be subject to
further call-that is, paid up stock.
8. The Water-works were mortgaged 70 VIM, Hem
dersou and James NJ. Ray, and the whole property
eyed 70 SECURE the payment of bonds to the
4. Bonds thus secured, to the amount of $4,000,
were to De delivered to the Canal Company satisfy
5. Thomas A. Hendricks, and four other directors
we're TO receive tue balance OF the bonds amounting
10 sS30O0o, and they to be applied the rate OF
~ cents on the dollar to the construction and opera
lion OF the Water-works.
6. The Canal Company, soon as Issued was 10
convey $1,000 OF the stock Of the Water-works CON-
pauy to each OF The directors, Thomas A Hendricks
ana four Others aud other stock TO the amount of
s9iO0O was to be placed In the possession OF William
henderson and James ~ Ray, trustees, to be deliv-
cred TO said parties, Hendricks and Others the work
OF construction proceeded-that $4,000 of stock to
be delivered TO the parties for every 1000 Of the
proceeds OF the bonds expended, aud when the full
amount OF ninety cents the dollar of the bonds
expended, the residue OF the whole stock, to the
amount OF S2i0.00U, 20 be handed over; this
make of the stock TO each Of the i've directors
making with the before-neniioned $4,000 $50 900 in
all Tine 5000 OF stock was issued TO each of the
parties, your Exceency included the 7th day Of
June, 1870.
7. The canal at the time of the conveyance was
worth nothing investment: II without value
in the Market For n number OF years previous 10
this transaction the expenses exceeded the income
from water rents, tolls, and all other sources.
.. This makes the account stand thus: The canal
was accepted by the Water-works Company. Value
OF the canal In the market nothing, but say IL was
worth $4,000.
SoooOOo hrst mortgage bonds to the amount OF
This stock was issued by the Water-works Compa any
by her Board Of Directors, Thomas A. Hendricks and
others.
D. The said Directors bargained TO receive back for
their use Ss50.0o0 Of the stock. Two thousa nd
dollars to each was received immediately ON being
issued; the remaining $4,000 each they 5argained
receive on complying with certain stipulaons which
they bound themselves to comply with.
10. As Directors, Your Exceency aud others gave
credit aud sanction TO the stock ISSUED the Canal
Company 10 the amount OF $3.50 0O0 aud thus placed
II IN the market TO deceive the unwary, and
was sod in the market with the knowledge OF your
self aud other Directors when by your own act aud
bargain IL had been issued without we'd
placed first mortgage debt on the Whole thing, and
all It's value for the present aud future far as any
possible value Is concerned the amount OF $3.50
the stock holders of the Canal Company placed the
Market but all the Others, with probably one excep-
ton, placed their stock the Market or ut least
part OF it, 10 the amount of S50Ooo making the whole
lency, an ex-United States Land Commissioner, an
ex-Unied States Senator, and Governor Of indi-
ana, Director, $4oo.ooo Where IL schsnck?
Respectfully, GEO y. AcGnNn