The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-04-18
1t Called for Reimbursement of Dis
count. Expenses and Interest on n
Series of war-LOan Bonds.
PAYMENT WAS REFUSED IN 1886
UNDER A RULING BY H AUDITOR
OF THE WAR DEPARTMENT..
Case Reopened by Act of Congress
and Claim for 35,S59.20
by Controller of Treasury.
Special to the Indianapolis Journal.

CpCCldi 10 t0e lDuldUd ptilS JOuIudL
WASHINGTON. April 1.-THE Indiana
State treasury will soon receive the sum of
$685., $50. 20 in settlement on the part OF the
government OF the United States of the
lo~ng-standing war claim of the State. This
sum is the amount determined by Control
Ter Of the Treasury Tracewell in his deci-
sion, officially announced on April 10, in
the settlement of the claim of the State of
Indiana against the United States on ac-
count of interest and other expenses paid
by the State on certain war bonds issued
by it in order to raise money for the equip
ment Of Indiana volunteers in the early
days of the civil war.
The allowance OF this claim has been
made possible by an act of Congress, APP
proved Feb. IA. 1902. which was success
fully attached TO the urgent deficiency APP
preparation bill through the personal eff
forts Of Hon. James A. Hemenway, men,
Der of Congress from the First Indiana
congressional district, and the work of Sem
ator Fairbanks. But for this provision of
law the Indiana war claim could not have
been passed upon by the controller of the
treasury and the State of Indiana would
not be able TO enjoy the receipt of over
$500, 600 to replenish it's treasury.
BY virtue of his position upon the APP
preparations committee of the House of
Representatives and his knowledge of the
ways and means of obtaining legislation,
the effort to secure congressional authority
for the reopening of the Indiana war claim
was lntrusted to Mr.. Hemenway, in which
work he received the cordial support of his
colleagues of the Indiana delegation in Con-
gress. To Mr.. Hemenway, however. is due
the credit Of the success of this movement,
and to him will be left the securing of the
proper appropriation for the payment of the
claim as at present fixed by the controller.
His universal success in such matters,
with Senator F~airbankS's efforts in the
Senate, can be relied upon for an early
appropriation Of this amount, . and the
treasury of Indiana will not long wait for
its money.
The claim, as is well known, is based up
on the loans made by Governor Morton in
the early days of tho civil war TO secure
funds with which TO equip the volunteer
soldiers of Indiana. Very soon after war
was declared Governor Morton. appreciat-
ing the necessity of prompt action, secured
the passage through the Indiana Legisla-
ture of an act which would authorize loans
for the purpose of such equipment. That
act declared that, because the ordinary
revenues of the State were insufficient TO
meet the necessary expenses growing out
of the then insurrectionary acts of certain
States, an emergency existed for the pas
sage of such act, and that it should be in
force from and after it's passage. In pur-
suance of the provisions of the act of the
Legislature Jesse j. Brown, j.. H.. Boyle
and James NJ. Ray were appointed as mem
bers of the Board of Loan commissioners
Under the provisions OF this act the Board
of Loan Commissioners negotiated certain
loans TO meet the emergencies set forth in
the act above referred to, and the money
so raised was expended by the State in the
equipment Of it's troops
THE REJECTED.
The State of Indiana, on the Sth day of
June. 1865. under the provisions of the act
of Congress of July q, 1861 az Stat. 2s2),
and joint resolution of March s, 1862 az
Stat, 6lD. making provision for the reim-
bursement to States on account of the
costs, charges and expenses properly in
CURED by them for enrolling, subsisting,
clothing, supplying, arming, equipping.
paying and transporting their troops en-
rloyed to aid in suppressing the war of the
rebellion, hled its certain claim against
the United States with the auditor of the
War Department, then called the second
AUDITOR, wherein said state claimed that
the United States was justly indebted TO it
on account of interest paid on certain
war bonds used by it in order to raise
money and used by it for the purposes
mentioned in said act and resolution, SUI
pra, and for discount suffered by it for the
negotiation of said bonds, and for certain
expenses incurred by it's commissioners who
negotiated said bonds. and for certain
losses in exchange incurred for the pay
ment of the semi-annual interest on said
bonds, said interest being by the terms
of said bonds payable in New York city,
and Tor certain payments made by ii for
printing, expressage and other incidental
expenses aocruing out of said bond issue.
The claim includes interest paid out by
the State on said bonds up TO and including
the first day of May, 1868. The amount of
the claim was $500, 979. Al. The auditor. on
the 26th day of September, 1886, disallowed
said claim in toto, and under the system
of accounting then in vogue certified the
result of said audit to the second control
Ter of the treasury for final disposition,
saying:
This installment is a claim filed by the
State Of Indiana against the United States
for reimbursement of discount, expenses.
and interest on war-loan bonds. 1t was
MED IN this once june g. 1868, for the sum
of sos, 979.41, under act of Congress APP
proved July q, 1861 ~ Stat. 1867
ut is the declared policy of the United
States not to pay claims of this character
unless provided for by special contracts or
special laws 1t will not be contended that
any express authority is contained in the
act of July q. 1861. to reimburse the items
composing this installment. and under the
rule laid down by the late attorney general
g OPP. Att. Gen, so that authority cannot
be taken by mere inference.
The amount Of s60e.979.41 is therefore
disallowed and certified to the second
controller for his action thereon
The second controller. on Oct. II. 1888
confirmed the action of the said auditor
and disallowed said claim in toto i'm the
language as follows:
THE foregoing report of the auditor OF
the 18th ultimo is approved. The balance
of 5000. Al is accordingly disallowed, and
the settlement OF said eighth installment
of the claim of the State Of Indiana under
the act of July q, 1861. is hereby completed
and finally closed"
PETITION TO REOPEN.
The State of Indiana, March "a, 1899
through Dudley & Kitchener, it's attorneys
fled with the controller of the treasur,
a petition to reopen the said settlement o.
said claim as made by the second con
after being reopened. be referred by tn,
controller 10 the Court of Claims for ad
Indication.
On Sept. 10, 1889, the State was denied
a reopening of said claim by the controIle
for the reason that the controller was no
authorized by law TO reopen claims settled
by his predecessor on a construction o
law. however erroneous said construction
may nave been. C6 Comp. Dec, 236.)
Under the act of Congress making appro
priations 10 settle urgent deficiencies 70
the present fiscal year, approved Feb. Il
1902, il is provided:
In ~refunding to States expenses INQUIRE,
in raising volunteers, namely:
'"To the State OF Maine, S13i, SIS. 81.
ITO the State OF New Hampshire, SOS
SASS,
ITO the State Of Rhode Island, 1924. GIT q
And the claims Of like character arisinl