previous difficulty in paying out unchartered money.
It then became a matter of discussion among the members of
the board in what manner this money could be used for the bene-
fit of the state. It was proposed by one of the memliers of the
board, that the acting commissioners should loan it for the benefit
of the state to some responsible banks or individuals, lest it should
become entirely lost by the failure of the banks. It was under-
stood that the money was placed in the bank as a special deposite,
and that the bank could not be made chargeable with eitner its
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PpUSE DoquMprjTfi. m
4^t$;ijor9Ucm pr total loss. Gm» Hua>pbrey apd my^Kp fk^ ^
4>nJy acting comnussioners, refused at that time jLo t(U(e upgn ifB
the respousiblljty of making these loan?. The subject w^ dis-
cussed frequently at the board after this, and until about the first
of j^arch. The board, as such, could not hy law make ony.Ioao,
ejccept to a specie paying bank. T\i4 banks of JLapeer, tb^ Fs^r-
mers bank of Genesee county, the Faroj^s' b^mk of Sandstone
and the Jackson county bank, had either become insolvent or so
doubtful that they could not be used in orf]ipa>ry business iraffac-
IJQnSy and doubts began to rest upon almost all thi^ class of bai^
priginating under the general bati^ing law. Th^ Ieg|s^t^re ni^
suspended the law under which thpy had been cheated. . /^he
.9tate had lost severaj thousand dollars by the ui^olv^ncy of ,^(^fx^
^ them, and it was apprehended tba,t more of tliem would.qea^
to redeem even in notes no better than their ow;i. ^nder ihesp
pircv^sjcapce^ the undersigned was indqcQd to consent to take a
part of this ^loney ; and on the firat day of March, the followipg
xesuiutions were adopted, all the members of the board being fti^e-
sent, except Judge Williams.
*'Resolvedt That the auditor of this board be dire;;^^ to dra^
bis warrant on the Slate Tre^urer in favor of James B. Hunfi
for five thousand dollars.
*^Uesdved, That the sum of twp thousand twp ,hundi;ed .^d
twenty four dollars and eighty four cents, be paid to i,. S. Hum-
phrey, by warrant of the Auditor on the State Treasurer ; the
/above su^ being for money received bv the State 'jrr^a3ucer and
placed jn the bank as a special deppsite.''
On the same day the al>ove five thousand dollars wajs loaned )»y
,me to the Farmers' and Mechanics' bank at Pontiac, on my check
on tiie State bank in favor of Schuyler Hodges and Georffe W.
WiiiiamS) they being the president and cashier of said bank ; the
check was delivered to the cashiqr, who applied to me for the loan
for the purpose of redeeming the notes of their bank, and he gave
me sl receipt in the following words :
^ Received of James B. Hunt, acting Commissioner, the sum of
five thousand dollars, to be paid on demand at the Farmers' and
Mechanics' bank at Poniiac, in such funds as shall be bankable in
the city of DetroiL March 1, 1838.
G. W. WiLMAMs, Cashier.''
The undersigned stated to the cashier, at that time» that when
thev should be at Pontiac together, proper papers should be drawn
and sLffPed by the president of the bank also, to which he assent-
ed. . The cashier was iilso informedi that the money would Dot
probably be demanded until it should be required, during the on-
stung year, to be p^id on the public works. On the 6th of March,
the cashier of the Bank of Oakland applied to me for a loap.of
u^gne of this money. We went to the State bank and ipqui^^d
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SOO HOUSE DOCUMENTS.
what hnis were there bdoDging to the state on special deposite ;
we were shown several packages, out of one of which the cashier
detected five hundred dollars, and gave a receipt in the followmg
words : /
** Rec'd of Jas. B. Hunt, acting Comnnissioner, five hundred
dollars, to be paid in banKable money in the city of Detroit, on
demand. March 6, 1838.
G. O. WinTTBMORE, Casfuer.^
He declined taking any more of the money, although he had
applied for four or five thousand dollars. The cashier of the
Farmers' and Mechanics' bank at Pontiac was in the State bank
at the time, and he agreed to take the residue of the money in the
bundle out of which the five hundred had been :?elected, being
two hundred and thirty-four dollars, and gave a receipt, signed as
cashier, for the same.
On the 17th of March, the cashier of the Farmers' and Mecha-
nics' bank at Pontiac, applied for another loan for the bank and
stated that the sum first advanced had been used in redeeming
the bills of their bank, and that all ho could redeem with this kind
of money would reduce their circulation previous to the resump-
tion of specie payments in the month of May, and by such re-
demptions, this loan would not increase the debt of the bank, but
only change the liabiHty. I went with him to the bank, and re-
ceived from the bundle of special deposites placed there by the
State Treasurer, the sum of five thousand dollars, for which my
check was given, as in other instances, and a receipt substantially
the same as the others given by the cashier. On th6 21st day of
MarcJi, he applied for tn6 loan of another thousand dollars, which
was taken from a si(nilar bundle, and my check given to the bank
and his receipt taken aid before.
Previous to these last loans, I had inquired of tlie State Trea-
surer, if there wps more of this money than be had reported to
the board, and he stated that there was about thirteen thousand
dollars, and when I made the above loans, and until some time in
the last summer, I had supposed that this amount also had been
transferred to the internal improvement fund.
About the 5th of April, the cashier of the Bank of Oakland
made another application for a loan of five thousand dollars, and
I gave him a check for that amount, on which he received only
' two thousand five hundred dollars, making the whole amount re-
ceived by this bank three thousand dollars. In this latter case I
drew a bond in the name of the president and cashier of the bank,
but it was only signed by the cashier. The whole amount loaned
to the other bank is eleven thousand two hundred and thirty-four
dollars. One of the members of the board agreed to loan to
Frederick H. Steevens, of Detroit, the sum of two thousand dollars
of this money, payable in one year, with interest: When the sob-
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HOUSB DOCUMENTa Ml
jaet wts mentioned to me, I gtTc my check for the amount, Md
took Mr. SteeTeos* note for the same, payable in one year, with
interest, at the Michigan state bank. And I also loaned to Geo.
W. WilKams, of Pontiac, a thousand dollars of the same kind of
money, payable in one year, with interest, at the Michigan state
bank-ip-inaking the whole amiount loaned by me to said banks and
individuals, seventeen thousand two hundred and thirty-four dol-
lars.
These loans were made in good faith on my part, and with the
intention of rendering a benefit to the state. There were no per-
sonal interests or considerations connected with the transaction
on my part, nor did I suppose that either the banks or the indivi-
duals' would consider themselves under any obligations to me
persomrfly ; any other bank or persons that I considered risspon-
•ible would have obtained the same accommodation, (such as it
was,) if they had made application. I was in the discharge of a
doty which I owed the state, as one of its officers, in a case where
no provinon had been made by law to meet ihe special drcum-
stanoes in which this money was placed. Those with whom 1
was associated made no objection to this course, and I presumed
that no difficulty would arise to mnke it the subject matter of dis-
cussion, before it would be repaid and expen^d on the public
works, and in that manner made beneficial to the state. If it had
not been loaned by me, it could not have been used the past sea-
son on the public works under the law of the last session ; and it
IS hoped that the state will not sufler any loss on account of this
transaction.
When this loan was first applied for, the subject was stated to
• the board, and they considered it the best disposition that could be
made of it, if sufficient confidence was entertained by me as to
- the ability of the bank. Indeed, so anxious was the board to
dispose of this special deposite money, that they consented to, and
did loan to the Bank of Gibraltar, fifteen thousand dollars of char-
tered money, on condition that they would take with it the sum
of five thousand dollars of this money ; and the state has still on
band of the same kind of money, some thousand dollars, which
has become almost worthless.
I had the utmost confidence in the ability of the banks and in-
dividuals to whom the money was loaned. The nresident and
• cashier of the Farmers' and Mechanics' bank at rontiac, were
my bail as acting Commissioner; they had justified as such bail
before the Auditor General each in the sum of twenty-five thou-
sand dollars; (he bank had given a bond in the sum of ('Ue hun«
dred and twenty-five thousand dollars, executed by some of the
most responsible men in the county, and it had been executed ac-
4sordin^ to law. Nothif^ has since transpired to my knowlec^,
rfianging the situation of the banks or inoividuals, except that an
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W2 HOUSE DQCUMENTa
iajunotioa ba^ b^eo iMoed agamft the Fonnem' aod H^^moit
bank at Pootiac, and a receiver appeioted to Uke clmrge of its
eflkcts. The receiTer has pobjUheda etatemeot fh9wif)g that
the bank is in a solvent condition. Whether this Ipao wns inclu-
ded in the statement when made» I am unable to atate. But it ia
auppoaed that the bank and the security it l>a« givea, togeiber
with the ability of my bail* will prove a sufficient indemnity IP
the state.
In relation to the accounts presented to the Auditor Geneml, I
can only say, that when the resolutions of the board were shown
to him, requiring him to draw his warrant in my favor for the
sum of eight thousand five hundred and tburty-five dollars and
twenty-five cents, he deolioed drawing the warrant, becauae, 90
be alleged, there was no express law authorizing either the board
or an acting commissioner lio pay the expenses of running the
central railroad doling the last winter and spring : aod h^ also
thought more wood had been purcliaaed for tlie use of aaid «oad
than was necessary. From the view taken by the Auditor Ge-
'neraJ «n this subject, the ooiBmisaicners, aitor completing the
jnead and purchasing the cars and engines, ought to have let the
road remain idle, until the legislature should have passed agMe
special law on the subject. Yet, strange as it may appear, he
has taken the same ground himself, and without any legislative
authority, he has been drawing on the internal improvement fuudt
without an order of the board, to pay the expense^ of runniQg
the central railroad. Of the accounts presented under said reso-
lutions, the Auditor Gk^neral allowed the sum of six huadi?Qd and
forty-six dollars and eighty-four cents, leaving the sum of seven
thousand seven hundred eighty-eight dollars and forty-three centPt
which is due to me from the state, and noakes pant of my over-
draft at the bank. There is also due to me for expenditures on
the Saginaw canal, the sum of $729 50, which the Auditor G^
nenal has also refused to allow, although the acting Commis^owr
. And engineer on that work have stated to him thiU the vouchers
are correct, and that the money has beea paid. There is also
due to me on the central railroad the sum of $239 92, for.ndvan-
ces paid by me while acting Conunissioner on that road. The
whoJe amounting to 98,757 65.
Until a warrant is obtained for this amount, I cannot reduce
my overdraft at the bank, caused by these payments for the atate,
and the loans of uncurrent money above stated.
AU which is respectfully submitted.
JAS. R HUNT.
Detroit, January 9, 1839.
' Since drawing the above report, the cashier of the Farmecs'
and Mechanics' bank of Pontiac, has roade.a statement of thetoir-
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HOtrSB DOCUMBNTS. ara
ctimMlMM in rektiofi t6 the Idttn to that bank, which is herewith
submitted.
J AS. B. HUNT.
To James B. Hunt, Esq., one of the acting Commissioners of the
Board of Internal Improvement:
At your request, I make the following statement of the facts
connected with the loan made by you as one of the Commission-
ers of the board of internal improvement, to me, as cashier of the
Farmers' and Mechanics* bank at Pontiac. It became desirable
oh the part of the bank, during the last winter, to reduce the cir*
culation before the resumption of specie payments, which was
to take place in the ensuing month ol May ; and 1 consulted with
a majority of the directors of the bank as to the propriety of ob-
taining a loan from the state, through the board of commissioners
of internal improvement. They thought it advisable. I had also
learned that the board desired to have the money loaned out,
which they had received from the Slate Treasurer, and lapjJied
to you for the same as the cashier of that bank, as you have sta-
ted in your report to the board, which I have seen, and the loan
Was made at the time and in the manner therein stated. I ob«
tained the money as cashier of that bank, and used a great pro-
portion of it in taking up the circulation of the bank. 1 deposited
the money that I had received of you in the bank within a few
days after the sdme had been received by me. A question then
arose as to whose account it should be placed in the books of the
bank, and not knowing to what account to credit the amount, the
teller of the bank placed it to my credit, and it remained in that
manner Until the receiver was appointed to take charge of the
affairs of the bank. I will further state, that notwithstanding all
the exertions made by me to eicchange and loan the same, the
bank or myself will lose from $1,500 to 81,800 in the transaction,
on account of the uncurrency of the money. These sums were
obtained by me in good faith and for the benefit of the bank. I
supposed, and so slated to you at the lime, that every dollar which
I could use in exchange for our bills would save the payment of
So much specie or eastern money, or drafts, in the Mav following ;
and as it was stated at the time that the money would not be re-
quired until needed in payment on the public works during the
summer, I supposed there would be no difficulty in meeting
the drafts of tne commissioners as they should want to use the
money.
It has been i matter of regret to me that it has proved other-
wise, and still more so that the injunction placed on the bank has
taken from it the abilitv to act in any way in this matter umil its
concerns arc finally cfosed. But I have no apprehension that
the state will lose any part of the amount loaned to the bank as
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aM HOUSE DCX3UMENTS.
above stated, although the bank cannot at preseiit render any a»*
sistance.
Yours respectfully,
G. W. WILLIAMS.
Detroit, Jan, 11, 1839.
(No. 4.)
Report of JL S. Humphrey, Acting Commissionet^ Southern Bail*
road and Havre branch Railroad.
lb E. H, Lothrop, Esq. President of the Board of bdemtd Im^
provemenL
Pursuant to instructions of the board of internal improvement*
I beg leave respectfully to submit the following report ; embra*
cing a general statement of the whole operations, condition and
disbursements in each department on the several works commit-
ted to my charfTQ, from May 15th, 1837, to the present time. A
portion of tlie first division of the southern railroad, from Monroe
to Adrian, was located and put under contract previous to Janu-
aiy 1st, 1938. The principal and only disbursements made by
me during the year 1837, were on account of engineering, which
on the several surveys of the southern railroad amount to the sum
of 812,336 ; and the surveys of the St. Joseph river, to the fur-
ther sum of 85,812. In April last, contracts were entered into
for the residue of tlie work on the first division of the southern
road, iron excepted, including the grading, drains, laying super-
structure, culverts, bridges, &c., under the stipulation that the
whole should be completed by the first day of January, 1839.
. The work is now far advanced* (the timber bein^ mostly laid,)
and is still steadily progressing ; but the unusual sickness during
the past season, and a limited number of laborers who could be
induced to go on the work, rendered it impossible for the contrac-
tors to perlorm their contracts within the time required. It is
believed, however, that the work will be finished the early part
of next season. In that event, the state will sustain little or no
damage in consequence of the unfortunate circumstances which,
notwithstanding the utmost efiforts of the contractors, have retard-
ed its progress. The superstructure on the first thirty-one miles
of the road, comprising the portion from Monroe to I^roy, is
mostly laid. It is constructed on vertical blocks, from ei^teea to
twenty-eight inches m diameter, well driven to a firm, solid bear-
infi:, and upon the top of these blocks is fitted a transverse timber
with a notch or gain cut to receive a longitudinal timber not less
than eight indies square ; upon these longitudinal tinibers is lakl a
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liDtJSB DOCUM&nTfl. 80i
libWi tkrto by ibur inches, vrhiGh» tether With the irdu platiS)
M ta be spiked to the aili. The bbchs are set six ^t apart^ lon^
git0dinally or ieogtbwiso of the roadi far the whole distaooe, ex^
cept on three or four sections^ where^ after the cootraots were dn*
Cered iotoaod the v/ork comroeoced^ indicatioDSof quiekjand weUe
fettod I on these seccioos it was deemed expedient (although at an
inoreaied expense of from three to four hundred dollars per mile)
to place the blocks only four fibet apart This portion ot the first
division is exceedingly favorable for the pkn of oimstraotiott
adopted* there being g^erally a hard elay bottom from mnt to
thirty Hiix fawbes below the surface, and I am eonfideot that the
road, wbea completed, will not be surpassed in solidity and ddra^
bility by any ''timbered road^ hitherto constructed in this 6outi^
try* •
The dost of completing the above portion of the road as eon*
tracted, (that is for grubUog and clearing, grading, putti^ in cul^
i^ertMi drains, lajring superstructure, and finishing ail tUn^ materials^
^xeept the iron and heavy bridges across Plumb (ireek and the
Hiver Raisin«) would amount, at the originol contract prices, to
$4,600 per mile. The actual cost, howevei', will somewhat
exceed that sum^ The level suriace of tho country t&qmte& 9Qtm
additional ditching in order properly to drain the road, the ex'-
peoae of whioh was not inchded to the original contracts. In flH
cases the contracts for grubbing and clearing were taken at a
very low rate, and the contractors in sevefral instanccfl^ were un-
it^ to fidfi] their contraiMs^ and consequently I was impelled 19
re-let the work at an advanced price. It will also be reooHected
that a joint resokxtioa was passed by both houses erf the legis-
lature at the last session, suspendicig for thirty daysy all oper^ttons
on the roadw The resoiisvioR. above mentioned was piissed at a
time when the engineers were actively enUfa^ in the suf v^eyi,
and before the line was satisfoctorily lodated in all its partsj By
(he operations of the resolution the en^ecnrs wefe prevented from
naaking some necessary slight alterations ki tho line^ and tha eoiii^
tractors proceeded to perform their contracts previoudy entered
ioto> on an imperfectly located line. After the exphntioH of tb^
time liirated in the resolution, the necessary oorrecttoits wef^
fluade at a small additional expense for grijbbing and deariii{gL
The precise amount of the rocreased expense cannot be given, as
(he work is not yet enthrely finished^ but it camnot be vetf great
The reflMiining portion of the first dvvbioR, from Leray to Adri>
ftfiy is bmlt upOQt the common piaa of road, with a mudsillv tie and
flawed m\ as more applicable than a block road! virhertf hfgh tm^
bankments and deep cuttings frequently occur.
The grading from Ler^ to Adrian is found to be more etpen-
aive iksta eny wiahes led roe to anticipate before the commeooa^
I of tfae work, them beii^ a nueb greater portkm of lU§
Digitized by VjOOQ IC
806 HOUSE DOCUMENTS.
deep exoavadon composed of a stiff cement of clay and graTel, or
hardpan, on which the contracts require the engineer to allow an
additional price per yard above common earth excavation. The
whole amount of work advertised according to law and put un-
der contract on the first division; amounts to about $320,000.
Other expenses have occurred, aa engineering, right of way,
fehcmgf depot buildings, machinery, <bc. &c. On the whole work
there has been expended about $200,000, a detailed statement of
which accompanies this report.
In accordance with a resolution of the board of internal im-
f)rovement, passed May 15th, 1838, 1 have commenced and most^
y finished a commodious depot building for passengers in the city
of Monroe. The ground on which the building stands was ob-
tained free of expense to the state, but it is hardly thought suffi-
cient in its present shape to accommodate the anticipated business
of the road. I would therefore recommend the purchase of that
remaining portion of the lot where the depot stands, which lies
on Front and Harrison streets. A lot also has been purohasedy
contiguous to the above, for an engine-hoose, repairing shop, lunv
ber yard, &c. The brick and other materials have been pur*
chased and the foundation laid of a building sufficiently large to
contain six engines, attached to which is a work shop for wood
repairs, two forges, benches, lathes, &c. necessary for the repairs
of the machinery and road.
A location for a depot has been made at Adrian on the public
square, as designated on the recorded plat of the eastern aoditioa
to the village of Adrian.
It may not be improper in this place to state some of the rea-
sons that influenced me in making the above location.
In the first place, it seemed to be entertained by many persons;
that the true policy of the state was against connecting the south-
ern railroad with that of the Erie and Kalamazoo at Adrian, in
such a manner as to afford any possible facility for the tranship-
ment of freight and passenger at that place. The present Kne of
the southern railroad crosses the Erie and Kalamazoo road one
half mile or more east of Adrian, and the contemplated depot on
the southern road is about one-fourth of a mile west of said cross-
ing and about the same distance in a southeasterly direction from
the depot of the Erie and Kalamazoo railroad.
In the second place, the present located line was found by ac-
tual survey to be several thousand dollars cheaper than any oth-
er route, except it might be by running half a mile along side of
the Erie and Kalamazoo road in the form of a double track road*
to their depot.
The inclinations of grade on the present route are much lighter
than those on the Erie and Kalamazoo, they being obliged to start
their trains from the depot, on an inclination of f^y tur forty-fiw
Digitized by VjOOQ IC
HOUSE DOCUMENTS. 99%
feet per mile ; betides the addittotml iAconvenieoce of n^eeMtfiiy
moviog many cars by hand in loading and unloading on so great
an inclination ; whereas the contemplated depot on the soatbern
road is located on a straight line and level grade, important oon
siderations not to be obtained on any other ponte than the ode
adopted.
In accorchnce with a resolution of the board autfaorisii^mc, if
X should consider it required by the puhlio interest) to c<Mtruct
a- doable track or a single one on each side of the river inl the
city of Monroe, I have advertised as the law directs, and rebei^
ed proposals for the necessary bridges across the River Raisin,
and for the building of about two miles of road. The cost, eX'>
duiive of right of way, and including the bridges^ is estimated at
about .t25,000. No accurate estimate can be made of the right
of way under the present law of appointing appraisers, but it it
anticipated that it wiil be very considerable.
The second division of the southern railroad, comprising the
portion from Adrian to Hillsdale villc^ has been located (hiring
the past summer. Much time has been expended in critical ex-
amination of the route. The location found most favorable, and
which has been adopted, is that recommended by the engineer in