Indiana State Sentinel

The State Debt Bill.

We perceive that there are apprehensions of a vague kind in the minds of some persons, who have not given the proposed amendments a particular examination, that these amendments propose to change the important features of the original bill. For the purpose of setting this matter in its true light, we propose to analyze the amendments, for the purpose of discriminating between those provisions which are purely matters of detail, and those which are new.

The first nineteen sections of the amendments providing for the issuance of certificates, the subscriptions to the canal fund, distribution of the trust funds, mode of electing and removing trustees, selection of bankers, security of the stock and funds, and calls for instalments of subscriptions; are merely details of the original act, with the exceptions following, viz: that the amount of the cash subscription, the time when it shall be closed and the time when the act shall take effect are changed; and a further priority is given to subscribers; also a less amount of bonds surrendered, is made necessary, for the act to take effect, and provision is made for exchange of sterling and 6 per cent. bonds, and that all or any of the trustees may be instantly removed for misconduct or inefficiency. The 20th, 21st and 22d sections relate to details of no special importance. The 23d section provides that in the sale of lands, the majority of the trustees shall decide as in other cases. The 24th section amends certain sections of the original act, all of which are details of no special consequence, excepting amendment J, providing that the State shall fix the salary of the trustee appointed by her, and the subscribers shall fix the salaries of the trustees appointed by them; and amendment K, striking out the provision in sec. 28 of the original act requiring the trustees to keep bridges in repair, it being understood that no such obligation now rests upon the State.

The 25th section is detail, relating to the mode of exchanging bonds, excepting that it may involve a small expense. The 26th section in furtherance of the new subscription, provides for raising further funds by the subscribers among themselves, and an extension of time not over two years, if necessary, for the completion of the canal. The 27th section guaranties the sacredness of the trust; and the 28th is the same as the 20th section of the original act.

Thus it will be seen that the important provisions of the new bill are,-for the division of the principal of the debt under sec. 32 of the original act,-the priority to subscribers,-the change of the subscription,-the exchange of sterling and 6 per cent. stock,--the power of a majority of trustees to act in all cases as in the 17th section of the original act, without the exception there mentioned.-and the mode of fixing the salaries of trustees.

It is represented that the priority to the subscribers asked for, is necessary to bring in those bondholders who are inclined to avail themselves of the benefit of advances made by others, without bearing their proportion of the burthen. If sufficient time is allowed for all bondholders to come in, there can be no objection on the part of the State to this provision.

It will be seen that all the changes proposed, relate to the canal part of the arrangement. If the amendments are adopted, the result will be the equal division of the debt, principal and interest, between the State and the canal, and the completion of the canal, without occasioning any increase of taxation, above that contemplated in the original act.