The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1888-01-09
GOOD USE FOR THE SURPLUS
Indiana Wants Three Millions of 1t, Due
the State on War-LOan Bonds.
Attorney General Kitchener Prepares an Ar
gument in Support of the Claim, Which
Will Be Presented to Congress Soon.

resentatives last week by Congressman Browne,
one of which provides for the payment to In
diana of certain amounts paid by the State
war-loan bonds and in direct taxes TO the gen.
eral government, opens the way for large
diminution of the Treasury surplus The Sec
ond bill is general in its character, and relates
to reimbursing all the States for the direct
levied for carrying on the war against the
bellion. AS to Indianas claim for reimburse
ment on the war-loan bonds new features are
presented. but Attorney general Kitchener. who
drafted the bills, says he will endeavor to
have it settled, notwithstanding the repeated
failures to that end since 1868. The war-loan
bonds were issued to the amount of 81 000, 000
under act of the Legislature approved May I3
1861. It authorized Governor Morton to make
the loan, the money arising therefrom to be
used in eauipping, clothing and feeding Indiana's
quota Of troops under the Presidents first
call. Hugh McCulloch, afterwards Secretary oe
tho Treasury. James NJ. Ray and John O'Boyle
were appointed commissioners to negotiate the
loan. but Mr. McCulloch could not serve, and
Jesse j. Brown took his place. On &C.
count Of the existing the credit
or the State WAS impaired. and the
bonds could not be placed except at a discount,
which amounted to s243. 107.51. The State.
however redeemed the bonds at their face val
and it is the loss she sustained in the dis
count and interest paid from May 1, 1862, to
May l, 1868, when the bonds were taken in, to-
gether with the expenses for negotiation that
constitute the basis Of the claim. The expenses
were 81, 685 80 and their interest at per cent.
semi-annually amounted to $685. 1876 81 The
aggregate of the appropriation for this purpose
provided for in the bill ls 5000 979 IL.
In regard to the justice Of this claim the At
Tn nav- pana raj I'd
July 81, 1861 passed an act directing the Sec3e-
tary of the Treasury to pay any State the costs,
charges and expenses properly incurred by her
for arming and supporting troops employed IN
suppressing the rebellion. By joint resolution
adopted by Congress March 8, 1862. it
declared that this act should be construed as
to apply to expenses incurred before the date of
the act as well as after. After tho bonds were
paid, in 1868, Governor Baker. General Kimball
Auditor of State. filed in the Treasury Depart
ment at Washington the claim for reimburse
ment account of the discount. interest and
expenses named. The Third Auditor of the
Treasury Department rejected the claim. He
said that il was not warranted by law, but
eral years afterward, in 1878. when Mr. Sher-
officers revived the natter by asking him to d-
rect the Auditor of the Treasury and Comp
troller to review the action of the Third
Auditor. It was done and they sus-
tanned the first decision. although Mr..
Sherman held that the claim possessed strong
equitable features This review sought
TO secure
ment of the claim by legislation. In 1872 Sena-
tor Morton introduced bill to have this money
paid the State, but it did become law.
Some years later a bill from Senator Harrison
to the same effect passed the Senate but it failed
In the House. Failures also attended the efforts
of Attorney generals Denny, Woolien and Bald
ing of the Treasury Department could not be
revised"
The second section of the bill provides for the
payment of per cent interest to the State on
the full amount of the claim. 5000. 979.41. from
the date it bears May &c, 1868, it's fling in
the Treasury Department at Washington. 2 But
State account of the direct tax she paid to the
United States government for purposes.
Congress provided for direct tax of $50, 100000
from all the States and Territories. in an act
passed Aug. 5. 1861. rebate of Is per cent, to
each State allowed if the tax should be
collected by the State herself, thus saving the
general government the expense of putting
special officers at the work. Indiana. through
her county treasurers. collected the full amount
done bY Governor Morton, whose action the
Legislature of 1865 approved. He also
authorized to make settlement Of the States
claim arising this tax with the general gov
ernment None of the States have been reim-
bursed for this direct tax, and 1ndiana's full
amount. as given. is credited on the books of the
United States Treasury
I'm view of the surplus in the treasury" said
Attorney general Kitchener, II thought it O
good time to get the amounts due the State
through legislation, and while in Washington
able me to draft this bill In addition the
discount and direct tax claims the bill provides
for the payment of interest on the latter. which
amounts as much az the principal. If it be-
comes a law it will put into the State treasury
more than So 000. 600. which will enable her to
pay ali her debts but that of the school fund,
and have a surplus besides. Tho Attorney
general can get no fees or com missions on these
for the Legislature of 1885 amend
cd the law relating to his Office to prohibit
him from receiving, by acts of Congress 9TH
erwse, anything for the collection of any money
due the State from the United States. That
law was passed at the suggestion of General
Harrison. am engaged in preparing an elab-
crate argument in support of this bill. 1t will
be printed and laid upon the desks of Congress
men within a short time"
The second bill. providing for paying all the |
States and Territories the amounts they gave |
the general government by the direct tax, will, |
# passed, refund to them total Of $40. 600 900,
including interest at per cert.
MYSTERIES OF THE STAGE.