The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-04-20
Finds There Is Nothing Due the State
on Its Claim for Three
Million Dollars.
THE STATE WILL APPEAL
ONE OF THE MOST IMPORTANT CASES
EVER LITIGATED IN INDIANA.
Complete Report of the Finding of
Noble G.. Butler, Special Mas
ter in Chancery.

Noble C. Butler. special master i'm chan
Gerry, in the case of the State of Indiana
ex rel. William A. Ketcham VS.. Terre
Haute & indianapolis Railroad Company
filed his findings and report i'm the Superior
Court of Marion county late yesterday
afternoon. He finds as conclusion of law
from all the facts reported in the case that
the State is not entitled to recover from
the railroad company any sum whatever.
The case. on account of the large amount
of money involved. was probably the most
important ever litigated in Marion county
or in the State. The suit was brought by
the State of Indiana, on relation of William
A. Ketcham. against the Terre Haute &
indianapolis Railroad Company, known as
the Vandalia, for an accounting and for
the recovery of between S3,000,000 and
81, 100000 alleged to be due the State for the
use of the common school fund. The cause
of action arose out of the construction
which the State authorities gave to Sec
tions %, % and "a of the charter OF the COM
pany, passed by the Legislature in 1S47.
Section 22 authorized the company to
charge such tolls and freights for the
transportation of persons, commodities and
carriages as shall be for the interest of
the company, and to change. lower or raise
the same at pleasure. Section 2S provided
that when the aggregate amount of divi-
dends declared should reach the full sum
invested in the road. with 10 per cent per
annum the Legislature was to have the
right to fix the tolls and freights, and that
the surplus after paying Is per cent. to the
stockholders should be paid over to the
trao If toto for no Of no
mon schools of the State. The road oper-
ated under its charter until the year 1873,
when it abandoned the same and incorpo-
rated under the general law of 1852.
In 1875 a suit was instituted by the at
torney general against the road for &C
counting and for the recovery OF about
100000 The railroad company filed a
demurrer to the complaint of the State,
which was sustained. and on appeal to the
Supreme Court the judgment was affirmed.
The present suit was brought about two
years ago, and Judge Carter, of the SUI
perior Court, sitting with Judges McMas-
ter and feathers, overruled the demurrer
and plea of former adjudication of the rail-
road company and referred the case to
Noble c. Butler as special master to take
| the testimony and report the same, with
his findings of fact and conclusions of law.
| The master commenced taking testimony
| in the case early in October of last year,
| and the case was continued during inter-
walls until about Jan. Is. The arguments
commenced on Feb. Is and lasted ten days.
4 1t was said to have been one of the great
est legal battles ever made in any court IN
| the State. The State was represented by
such eminent counsel as William A. Ketch-
am, Ferdinand Winter and Roscoe q. Haw-
| kins, of this city, and Robert s. Taylor, of
| Fort Wayne. The defendant was repre-
sented by John CT. Williams, who has been
| connected with the Vandalia road for many
| years; S. o. Pickens, the local counsel of
the Pennsylvania Railroad Company, and
| Lawrence Maxwell, jr., of Cincinnati.
If the court approves the report OF the
| special master ii is probable that excep-
| tons will be filed by the attorneys for the
| State and the case will be appealed to the
| Supreme Court. When Governor Mount
was appraised of the decision in the case
| last evening he was greatly surprised, but
| said he had nothing to say. w. A. Ketch-
am, Ferdinand Winter, s. o. Pickens and
r. .. Hawkins, attorneys on both sides OF
! evening, and it was impossible to obtain
an expression from them in regard TO any
| future action in the case.
| Attorney Horace Z. Smith, law partner
of r. o. Hawkins, in speaking of the case
/ last night said the decision rendered by the
| means. Said he: when this case comes III
before the Superior Court for a cOnfirma
| ton of the findings of the special master
you will see that the whole will bt
| certainly carry the case up TO the Supreme
\ Court of the State, and if necessary ever
| to the Supreme Court of the United
4 States"