The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-02-16
lNDIANA'S CLAIM JUST
REPORT OF SENATE COMMITTEE ON
A JOINT RESOLUTION.
Fedora Government shown to Owe
This State $714,476 for Discount
on Bonds and Interest.
pecial to the indianapolis Journal.

Special to the indianapolis Journal.
WASHINGTON, Feb. Ex-senator Fair
banks. Of the committee on claims, has
prepared the following report to accompany
joint resolution No 66, a measure of i'm
portance to the State of indiana:
the committee on claims, to which was
referred the joint resolution (S. r. Co au-
thorizing and directing the secretary of the
treasury to pay certain claims of the State
or Indiana. after careful examination of
the same, do thereupon make the following
report:
reimbursement for discount, expense in
CURED In negotiating, and interest paid on
war loans, under and by virtue of an act
of Congress approved July q, 1861 az Stats,
z76). which Is as follows:
THAT the secretary of the treasury be,
and he Is hereby directed, out of any
money in the treasury not otherwise APP
propriated. TO pay TO the Governor of any
State, or to his duly authorized agents., the
cost. charges and expenses properly in
CURED by such State for enrolling. subsist-
ing. cothing. supplying. arming, equipping,
rayfng and transporting its troops en-
ployed in aiding TO suppress the present in
surrection against the United States, to be
settled upon proper vouchers TO be filed
and passed upon by the proper accounting
officers of the treasury
ION March s, 1862, the Congress-, by a
Joint resolution. construed the foregoing
act as including expenses incurred as well
after as before The date or approval there
of. Q2 Stats, 615.).
"Rtfsuant to the provisions of the fore
going act and resolutions the State of In
diana filed a claim in the office of the third
auditor of the treasury, on june s. 1865.
through the duly constituted officers of the
State. for the sum of $500. 1874. 1t was
stated as a fact by the officers representing
the State In support of the claim, that in
order to enable the State to respond to the
calls Of the President during the civil war
for troops. and TO properly raise, organize,
arm. equip. subsist. quarter, pay and trans
port said troops, IL was necessary to raise
funds by a loan upon the credit of the
State. for the State was without the requi-
site revenues.
"The Legislature, in order to enable the
State TO meet the calls of the President,
Issue bonds; to appoint a board of loan
commissioners and defining their duties:
requiring the sinking fund commissioner
To- purchase bonds; defining their duties in
relation TO the interest received on same:
and ievying a tax TO meet the payment of
the interest and principal of the bonds to
be sold.' which act was approved May Is.
BONDS SOLD AT DISCOUNT.
BONDS in the par amount OF 1000. 900
were authorized. and sold by the board OF
loan commissioners. after due and proper
notice. at a discount OF $243. 107.51. Expenses
incidental TO the sale were paid by the
board In the sum OF 81. 80. The State paid
as. interest upon the bonds so authorized
and issued. up TO the 1st day OF May. 1865.
the sum of $685.. 1861. making a total OF
$e06. 1874. claimed as due by the State on
the sth day of June. 1868.
lon the 18th day OF September. 1856. the
third auditor OF the treasury disallowed the
claim on the ground that 1t is the declared
policy OF the United States not to pay
claims of this character unless provided for
by special contracts or special laws. IL will
not be commended that any express author
fty is contained In the act of July q. 1861.
TO reimburse the items composing this in
stallmenf. and under the rule laid down by
the late attorney general 60 OPP. Attorney
General, So that authority cannot be taken
by mere inference
ION Oct IL. 1855. the above report of the
auditor was approved by the second con-
troller of the treasury. Subsequently on,
to-wit. the 18th day of January, 1899. the
State Of Indiana petitioned the secretary OF
the treasury for an order setting aside the
dizallowance OF the account above men,
toned so that IL might be reconsidered, the
claim having been rejected upon mistaken
view Of the law.
THE fact should be borne in mind thai
subsequent 20 the d.sallowance OF the
the papers and vouchers relating 10 the
claim OF the State OF New York against the
Emitted States pending In the Treasury De-
partment. for interest paid on money Dor
rowed and expended In enrolling. subsist-
ing. clothing. supplying. arming and equip
rfEg troops for the suppression OF the re-
belIfon OF 1861 were transmitted 10 the
| Court Of Claims. This claim was IDENTICAL
~ the same In every essential particular as