Indiana. General Assembly.

Documentary journal of Indiana 1867 (Volume 1867) online

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Document, No. 1 Governor's Message.

Document, No. 2 Keport of the Indiana Hospital for the Insane*

Document, No. 3 Beport of the Auditor of State.

Document, No. 4 Report of the Treasurer of State.

Document, No. 5 Keport of the Agent of State.

Document, No. 6 Eeport of Deaf and Dumb Asylum.

Document, No. 7 Report of the Inst, for the Education of Blind.

Doc. No. 1.] [Part II.




Delivered J a n u a r r 11, 1867.

Gentlemen of ike Senate and House of Representatives :

Throughout the year which has just passed, the people of Indiana
iiave been greatly blessed. The pestilence which desolated other
parts of the country touched within our borders but lightly, and did
not long remain, and good health has generally prevailed to an unu-
sual degree.

Although one of our staple crops has. fallen short, causing los;
and embarrassment to many, yet we have had great and almost un-
exampled prosperty.

Agriculture has been prosperous, commerce has flourished, manu-
factures have been extended, public improvements of various kinds
projected and successfully prosecuted.

When we consider that the country has just emerged from a dread-
ful war in which our State bore a distinguished part, and suffered
greatly in the loss of thousands of her best citizens, and the with-
drawal from labor and business of many thousands more, her general
prosperity and growth in population and wealth is as surprising as
it is gratifying.

According to the census of 1860, the population of Indiana was
*>ne million three hundred and fifty thousand four hundred and
twenty-eight (1,350,428).
Part 2.—B. J.— 1


By the enumeration which has been made and returned to the
Auditor of State, under an act of the last Legislature, it is shown
that, in 1866 the State had a population. of three hundred aud forty
thousand two hundred and forty (340,240) white males over the ago
of twenty-one years, which number multiplied by the ratio usually
adopted, would give a population of over one million seven hundred
thousand. The estimate will also be sustained by comparing the
acrjregate vote of 1860 with that of 1866, and shows an increase of
more than three hundred and fifty thousand in six years.

According to this ratio of increase the State will have within her
borders in 1870 more than two millions of people, which would be
an increase of over forty-eight per cent, in ten years. It is doubt-
ful whether any State in the Union is growing more rapidly in popu-
lation, wealth, manufactures, public improvements, and the genera!
development of agricultural resources. This great result is owing,
in large part, to the high character which the State has acquired
during the war.

The large number of men she furnished to the armies of the
Union, under circumstances of great trial and difficulty, their uni-
form and distinguished gallantry on every battle field, surpassed by
the soldiers of no other State, the great and continued liberality of
her people for sanitary purposes and to relieve the distress growim:
out of the war, and the faithful performance of all obligations of
whatsoever kind in the midst of the great conflict, have commanded
universal admiration and directed the attention of the enterprising,
and those who in every State are seeking for new homes, to the
advantages presented to the labor and capital of the immigrant.


I was absent from the State on account of ill health, from the 16th
day of November, 1865, until the 17th day of April, 1866, during'
which period the duties of the office, under the Constitution, were
performed by Governor Baker. The great ability and fidelity to the
interests of the State which distinguished the administration of Gov-
ernor Baker, commanded the general approval of the people, and
makes a public acknowledgment on my part proper as well as a great
pleasure. The duties which devolved upon him were of an important
character, and were so well and faithfully discharged as to be satis-
factory to all.



The public debt of the State outstanding in the hands of creditors,
to be provided for, is as follows :

Five per cent, stocks $3,829,930 33

Two and a half per cent, stocks 1,191,091 65

Total amount of stocks §5,021,027 98

War Loan Bonds 309,000 00

Yincennes University Bonds 66,585 00

Total public debt §5,396,612 9b

The Auditor estimates that the State Debt Sinking Fund tax for
1866 will, on the 1st day of July next, furnish nine hundred thou-
sand dollars, ($900,000) and that enough can be drawn from* the
General Fund in the Treasury at that time, and added to this
amount, to redeem all the outstanding two and a half per cent,
stocks, which will leave outstanding in the hands of creditors, to be
provided for otherwise, four million two hundred and five thousand
five hundred and twenty-one dollars and thirty-three cents $4,205,-

The assets of the Sinking Fund, independent of State stocks and
bonds, which by the law of last winter are to be applied to the pay-
ment of the State debt, may be safely estimated at one million dol-
lars ($1,000,000) of which amount five hundred thousand dollars
(500,000) can be made available by the 1st of July, 1870, and which,
if properly applied, would leave the balance of the debt to be pro-
vided for and paid by taxation, three million seven hundred and five
thousand five hundred and twenty-one dollars and thirty-three cents
$3,705,521.33), which, it is estimated by the Auditor, will be fully
accomplished, at the present rate of taxation for that purpose, by
the 1st of July, 1870.

This shows the financial condition of the State to be better than
at any former period in her history, and presents the gratifying pros-
pect that by 1870 she will have taken up all her stocks and be out of
debt, without adding to the taxes which have been already imposed.

To avoid confusion of ideas it must be borne in mind that the
money and property of whatever kind belonging to the old Sinking
Fund are held for the benefit of the School Fund, and while so much


of the State Debt as may be purchased by the Sinking Fund is
thereby extinguished in so far as creditors and the public are con-
cerned, yet it must, in another form, be kept alive for the benefit of
the School Fund.

The report of the State Auditor will be found to be an able and
thorough document, giving a full exposition of the business affairs of
the State.

In the above estimate of the indebtedness of the State I have
omitted the internal improvement bonds, amounting to three hundred
and fifty-three thousand dollars ($353,000.)

The Auditor in his report, following the example of his prede-
cessors for more than twenty years, has put these bonds down as a
part of the indebtedness of the State. They belong to the old debt
of the State upon which a compromise was made in 1846, the hold-
ers of them failing or refusing to enter into or take part in the com-
promise. Upon these bonds interest has not been paid for more
than twenty-five years. The attitude of the State in regard to them
is not creditable and ought to be changed. Year by year the State
by her accounting officers publishes and confesses to the world that
they are a part of her indebtedness, but pays no interest on them,
which has now accumulated to more than half a million of dollars,
bend makes no offer to pay the principal although it has long been
due. The character of Indiana is too high, and her position too
proud to allow her to occupy an attitude so equivocal. It not my pur-
pose to enter into any discussion at this time as to the legal and mor-
al obligation of the State to pay the interest and principal of these
bonds in whole or in part ; but I desire simply to say that if the State
believes that she is not bound to pay them, and does not intend to do
so, she should through the Legislature, promptly declare that fact to
the world, and have them stricken from the books of the Auditor.

If, on the other hand, she holds herself bound to pay the whole or
any part, she can not honorably longer delay to take action for that
purpose, as her ability to pay cannot be denied.


In pursuance of the provisions of an act passed at the late special
session of the Legislature, creating a State Debt Sinking Fund, for
the payment of the State debt, and abolishing the Board of Sinking
Fund Commissioners and all offices connected therewith, the Auditor,
Treasurer and Agent of State, acting as the State Debt Sinking

Fund Board, have purchased in the market four hundred and sixty
thousand, thirty-six dollars and ninety-one cents of the certificates
of Stock, bearing interest at the rate of two and a half per cent.,
which they have caused to be cancelled.

The Board of Sinking Fund Commissioners, by virtue of an act
passed also at the late extra session, directing them to invest any
moneys belonging to the Fund, in Indiana State Bonds or Stocks,
have purchased Stocks and Bonds to the amount of seven hundred
and nine thousand and twenty-four dollars and eighty-five cents.

The Auditor of State and the Agent of State in their reports point
out several material defects in the first of the above mentioned acts
which require legislative remedy. In addition to those pointed out
by these officers, I will call your attention to another.

The seventh section of the act abolishes the Board of Sinking
Fund Commissioners on the 20th day of January, 1867, and directs
that all the property of whatever kind, both real and personal, belong-
ing to said Fund, together with the books and papers, be surrendered
and turned over to the Auditor. The annual sale of Sinking Fund
lands took place on the 11th day of December, 1866, and by the
terms of the law, deeds are to be made to the purchasers of such
lands as are not redeemed at the expiration of sixty days from that
time, which will be in February, at which time the Board of Sinking
Fund Commissioners having ceased to exist, there will be no officer
having authority to execute the conveyances. It will therefore be
necessary to empower some officer or officers to execute the deeds
and perfect the contract with the purchasers.

The act is further defective in failing to give the Auditor authority
to collect the money upon the Bonds and Mortgages falling due.
which are to be placed in his hands by the Sinking Fund, by selling
the mortgaged lands.

Such authority should be directly conferred, and he, or other proper
officers, should be empowered to execute conveyances to the pur-

As the law now stands after the 20th of January, 1867, there will
be no officer authorized to sell the mortgaged lands or make deeds
to purchasers therefor.

The borrowers from the Sinking Fund on mortgage security, have,
by special enactment, had their loans extended for five years from
1868, by paying the amount due in equal annual installments. Upon
their failure to pay any of these installments, their lands can be
offered for sale, and if there are no cash^bidders, sold on a credit of

five years. This may defer a collection of a part of the money for
eleven years, and as the State has abandoned the policy of lending
money on mortgage security, it will be inconvenient and unnecessary
to keep these claims outstanding so long, and I therefore recommend
that the law be so changed that when the mortgaged lands are sold,
they be sold for cash, and thus close up the transaction five years


At the late special session a concurrent resolution was adopt;"].
directing the Governor to appoint a Committee of three persons to
investigate the management and operations of the Sinking Fund,
and the manner in which the moneys belonging to it had been invested
or deposited.

Governor Baker appointed on this Committee, Hon. E. W. H.
Ellis, Hon. John A. Matson and Major Thomas J. De La Hunt. The
Committee met and organized by the appointment of Charles P.
Jacobs, Escp, as Secretary, and proceeded to the investigation.

Their report, accompanied with the evidence in the matter is here-
with submitted,


The otnce of Adjutant General has been well and ably adminis-
tered by General Terrell. The report which he is publishing will
consist of seven large volumes, of which six have been already issued,
and will be invaluable as a history of the officers and s ddiers of Indi-
ana during the late rebellion. It is intended to give the name and
military history of every officer and soldier who went into the army
from this State, and thus furnish a public record of the service.
and honorable discharge of every good soldier, and fix the status
of every deserter and of every man who was dismissed or punished
for cowardice or crime. The value of the record will increase with
years, and will be held sacred by coming generations, to whom it
will perpetuate the honorable deeds of their ancestors ; and it is to
be regretted that the Legislature did not make provisions to have the
work sterreotyped and the plates purchased and held by the State.
From those who have compared it with the reports from other States,
I am assured that it will be found to be more complete in its infor-
mation and perfect in its arrangement than any similar work, and
General Terrell is certainly entitled to great credit for the ability,
care and industry displayed in its preparation.


The State received from the General Government at various times
during the war for the use of the Indiana Legion (41,572) forty-one
. thousand five hundred and seventy-two pieces of small arms, and
twenty-one pieces of artillery, with carriages, caissons, and equip-
ments, all of which were charged to the State, and required to be
accounted for.

The report of the State Quartermaster, General Stone, shows that
(41,212) forty-one thousand two hundred and twelve guns have been
returned to the proper United States ordnance officers at this point,
and (530) five hundred and thirty guns lost and destroyed in the ser-
vice have been accounted for by proper affidavits, making a total of
(41,742) forty-one thousand seven hundred and forty-two guns
accounted for to the General Government, and that all the artillery,
caissons and equipments have been returned. This leaves the State
clear of all liability on the score of arms for the use of the militia,
and the account has been closed, which is a most desirable result.

General Stone's report is lengthy, and gives a comprehensive
statement of the operations of the Quartermaster's Department from
the time of his appointment. The Department has been a large and
cumbrous machine, but has been managed with great fidelity, ability
and success, for which General S tone is well entitled to the thanks
of the State. His position has been one of great responsibility and
labor, and its duties have been performed to my entire satisfaction.
Your attention Is especially invited to the interesting details in his


The report of Major Stearns Fisher, Paymaster of the Indiana
Legion, shows that about fifty thousand men have received pay for
military service in repelling rebel raids and guarding against invasion.

The whole amount of money disbursed by him for military service
amounts to five hundred and sixty-six thousand three hundred and
ninety dollars and twenty-eight cents ($566,390.28). There still
remain unpaid claims allowed by the Auditing Committee amounting
to over thirty-three thousand dollars, which are being paid as fast as
presented. And there are also claims, apparently just, amounting
to twenty-five or thirty thousand dollars, which have been presented
since the Auditing Committee was abolished, but cannot be paid until
an appropriation is made for that purpose. Although the amount of


money disbursed is not very large comparatively, yet it has been
paid out in small sums and the business has been complex, involving
a great number of accounts, and has been ably and faithfully per-
formed by Major Fisher.


Colonel William H. Schlater has acted as my Military Secretary,
except during the time that he was in the field, from the beginning
of the war. His ability for the correct and rapid dispatch of busi-
ness as a Secretary, is without a superior, and his accurate recollec-
tion of names, dates, and minute circumstances connected with ihv
organization of the army, rendered his services most valuable. Our
relations have been most agreeable, and it affords me pleasu;
make this public acknowledgment.


The military agencies in this city and in Washington for the pi
ecution and collection, free of charge, of bounties, back pay and
pensions, due to soldiers and soldiers' widows and orphans, ]
been kept in operation, and have transacted a large amount of busi-
ness and rendered great service to those who are poorly able to pay
for it. The report of William Hannaman, Esq., gives a full statement
of the transactions of the two agencies and contains matter and sug-
gestions of much interest and importance. In my opinion the agen-
cies ought to be maintained and their sphere of usefulness enla.
by appropriate legislation.


The general management of the Institutions for the Blind and
Deaf and Dumb, and the Asylum for the Insane, has been satisfac-
tory, and I believe that the Board of Trustees and the several super-
intendents have labored to conduct them upon sound and economical
principles. At the last session of the General Assembly an act was
passed authorizing the enlargement of the Insane Asylum for the
reception and care of the " incurable insane." The construction of
the buildings has been commenced, but further appropriations will be
required for their completion. The necessity for this enlargement
and addition cannot be denied. Many cases of the "incurable in-

sane" have come to my knowledge, where the patients are without
friends, or their friends are unable to take care of them, and which
are of a character to make it difficult to provide for them in the
County Poor Houses, and render it important that the new building
should be Completed without delay.

The general efficiency and success of the benevolent institutions
of Indiana are creditable to the intelligence and humanity of her


The reports from the Boards of Trustees and the Wardens of the
Northern and Southern Prisors, and other information I have re-
ceived, show that the Prisons have been well and economically con-
ducted. A fire occurred in the machine shops of the Southern Prison
last summer, by which considerable damage was done, and a number
of convicts thrown out of employment. As they could not again be
returned to labor until the damages had been repaired, for which
there Avas no appropriation, I took the responsibility of urging the
State Treasurer, Honorable John I. Morrison, to pay from the Trea-
sury the necessary amount to make the repairs, which he did, and I
now respectfully ask this General Assembly to approve his conduct.
It was done to prevent a considerable loss to the State in the way of
convict labor.

The report of the Board of Trustees of the Northern Prison states
that the sum of s^xty-three thousand eight hundred and ninety-two
dollars and seventy-six cents will be necessary to complete the con-
struction of that prison, and for deficiencies on account of work and
materials already furnished, eighty-seven thousand nine hundred and%
twenty-nine dollars and forty-three cents, for which amounts an
appropriation is asked, and to which your attention is specially


The second section of the ninth article of the Constitution reads
as follows :

" The General Assembly shall provide Houses of Refuge for the
reformation and correction of juvenile offenders."

This constitutional provision, adopted in 1851, and which is plainly
mandatory in its character, ftp to this time remains wholly un^xe-


cuted. The necessity for such institutions is admitted by all who are
at all familiar with the administration of the law, and I believe that
a strong public sentiment demands that the legislative consideration
of the subject shall not be longer postponed. We have no punish-
ment now for the juvenile offender but the common jail and the pen-
itentiary, neither of which exert a reformatory influence upon the
youthful mind ; and during my six years experience as the Executive
of the State, I have often been constrained to pardon the youthful
criminal because I felt that to incarcerate him in the penitentiary
.would be to consign him to a life of degradation and crime. Humanity,
justice, and the plainest principles of public policy, demand that the
juvenile offender shall not be treated like the mature and hardened
criminal, and placed in the society of felons; but that an effort shall
be made Avhile he is yet in tender years, to reclaim him from vice
and train him to a life of usefulness and respectability.

The " House of Refuge," as it has long existed in many of the
older States, is a vast improvement upon the jail and the peniten-
tiary ; but within the last few years great progress has been made in
elevating the system, and results have been obtained in the reform
education of juvenile offenders that are truly wonderful.

The introduction of the "Reform School" is, in many respects, a
it improvement upon the old House of Refuge, and has been at-
tended with a success which it would be hard to believe, were it not
attested by indubitable evidence.

Btrnabas C. Hobbs and Charles F. Coffin, distinguished members
of the Society of Friends, have bestowed much attention ami labor
upon the subject, and have addressed to me valuable communications,
which I herewith lay before you, together with reports and docu-
ments setting forth the character and operations of the Reform
Schools of New York, Ohio and Illinois.

As the subject is one of no ordinary magnitude, and requires for
its full understanding much thought and investigation, and as the
system you may adopt will be intended not for a year only, but for
all time, and should be wisely considered, I recommend that commit-
tees be appointed at an early day, with full powers to investigate the
subject and report a" plan, if possible, for your consideration and
action at the present session.


I deem it my duty to direct your attention to the fact that no pro-
vision has been made for the accommodation of the Supreme Court.


The State House does not afford sufficient room at any time, and
during the sessions of the Legislature none of the Judges can occupy
rooms there for chambers. The large and increasing business of the
Court can not be promptly disposed of unless the Judges have com-
fortable chambers, with convenient access to the law library, and the
judicial records.

The importance and dignity of the Court, the necessity for the
prompt dispatch of its business, and a proper regard for the comfort
and convenience of the Judges, require that the Court room, clerk's
office, law library, and the chambers, should be situated adjacent to
each other. It is not becoming or excusable, that the judicial depart-
ment of the government should be neglected and left to shift about
for a local habitation, deprived of those conveniences necessary to
the speedy and comfortable performance of its duties.


At the Special Session of the General Assembly, in 1865, an act
was passed directing that an enumeration of the white male inhabit-
ants over twenty-one years of age, be made in each county in the
State, prescribing rules and regulations therefor.

This enumeration has been made and properly returned to the
Auditor of State, who has caused it to be published.

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