USA > Indiana > An illustrated history of the state of Indiana: being a full and authentic civil and political history of the state from its first exploration down to 1875 > Part 14
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In 1834, Governor Noble, grasping at the system of public works that was adopted in 1836, of which he should be regarded, in a great degree, the author, remarked: "With a view of engaging in works of internal improvement, the pro- priety of adopting a general plan or system, having reference to the several portions of the State, and the connection of one with the other, naturally suggests itself. No work should be commenced but such as would be of acknowledged publie utility, and when completed would form a branch of some
general system. * *
* In view of this object, the policy
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of organizing a board of public works is again respectfully suggested." The attention of the legislature, in 1834, was also directed to the "praiseworthy and public spirited enter-
Y E. Milano
See page 21.
prise of that portion of our citizens interested in the line of railway designated by the Lawrenceburg and Indianapolis charter."
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HISTORY OF INDIANA.
In 1834 the Michigan boundary question, in which that State acted a very headstrong and reckless part, was first brought to light. Michigan, notwithstanding the approval by Congress of the constitutions of Indiana, Ohio and Illinois, in each of which their respective boundaries were clearly pointed out, claimed, as her southern boundary, an east and west line drawn through the southern extreme of Lake Mich- igan. In a recognition of this claim Indiana would have lost a district ten miles wide, extending entirely across the north- ern part of the State, including one of the fairest and most desirable portions of her territory, and have been entirely excluded from any access to the lake, except through a foreign jurisdiction. In addition to these considerations, there were other reasons why Indiana should have opposed the Michigan boundary claim. In the first place, the mouth of the Maumee river, and the termination of the Wabash and Erie canal, laid within the limits claimed by Michigan, and it was more than probable that Ohio would abandon co-operation in the work if the territory was transferred. Beyond this, Indiana would to a great extent lose the benefit of one of her greatest public improvements. This controversy continued until 1836, when Congress refused to acceed to the demands of Michigan, but, settled the question by extending her territory in the Lake Superior region.
In 1834, the State bank again commenced operations "under very favorable circumstances." The stock in all the branches authorized was subscribed by individuals, and the installment paid as required by the charter. The loan author- ized for the payment on the stock allotted to the State, amount- ing to five hundred thousand dollars, was obtained at a pre- mium of one and five-hundredths per cent. on five per cent. stock, making the sum of over five thousand dollars on the amount borrowed.
In December, 1835, the legislature of Indiana convened in the " New State Capitol," at Indianapolis, and on the occasion Governor Noble, in his message, remarked: "This is your first session in your new capitol, and from the conviction that the occasion will not fail to inspire feelings of exultation
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ADMINISTRATION OF GOVERNOR NOBLE.
within you, I will not withhold, on my part, the offering of a hearty welcome and congratulation. It is an edifice worthy of the State, and, being dedicated to the public interests, within these walls the representatives of the people will annually assemble to perform some of the most important duties ever delegated to man. The people, through their rep- resentatives, will here speak their wishes, utter their com- plaints, and obtain redress for their wrongs." Forty years have passed since these sentiments were uttered by Governor Noble, and still " New (now old) State Capitol " is universally the scene of legislative activity.
During the year 1835 the work of public improvements was pushed forward. "The operations on the line of the Wabash and Erie canal," says the Governor's message, "have been conducted the past season with energy and great success. The middle division, extending from the St. Joseph dam to the forks of the Wabash, about thirty-two miles, has been com- pleted, for about two hundred and thirty-two thousand dollars,
including all repairs to this time. * * * Upon this portion of the line navigation was opened on the fourth of July, on which day our citizens assembled to witness the mingling of the waters of the St. Joseph with those of the Wabash, uniting the waters of the northern chain of lakes with those of the Gulf of Mexico in the south. On this division boats have been running, without the interruption of a day, since the letting in of the water." On other parts of the line the work progressed with speed, and the sale of canal lands was unus- ually active.
In 1836 we find that the State bank was "subserving all the valuable purposes for which it was established," agricultural products were abundant, and the market was good; conse- quently the people were in the full enjoyment of all the bless- ings of a free government and of an enlightened civilization. In this year the first meeting of the State Board of Internal Improvement was convened, and entered upon the discharge of its numerous and responsible duties. Having assigned to each member the direction and superintendence of a portion of the work, the next duty to be performed preparatory to an
14
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HISTORY OF INDIANA.
enlarged sphere of active service, was that of procuring the requisite number of engineers. A delegation was sent to the eastern cities, but returned without engaging an engineer-in- chief for the roads and railways, and without the desired number for the subordinate stations; but after considerable delay the Board was fully organized and put in operation.
During the year 1836 the public works, under the new management, were successful. The Wabash and Erie canal progressed steadily. The navigation of the middle division, from Fort Wayne to Huntington, was uninterrupted. Sixteen miles of the line between Huntington and Lafontaine's creek were filled with water and made ready for navigation, and the remaining twenty miles were completed, with the exception of a portion of the locks. From Lafontaine's creek to George- town reasonable progress was made, several sections having been completed and received by the Board. The line from Georgetown to Lafayette was placed under contract. During .the same year about thirty miles of the White Water canal extending from Lawrenceburg through the beautiful valley of the White Water, to Brookville, were also placed under con- tract, twenty-three miles of the Central canal, in the vicinity of and passing through Indianapolis, were placed under con- tract and work commenced upon it; about twenty miles of the southern division of this work, extending from Evansville into the interior, were also contracted for. On the line of the Cross-Cut canal, from Terre Haute to the intersection of the Central canal, near the mouth of Eel river, a commencement was also made on all the heavy sections.
Early in this year a party of engineers was organized, and directed to examine into the practicability of the then con- templated Michigan and Erie canal line. The result of its operations gave evidence of the expediency of the work. Soon after the organization of the Board of Internal Improve- ment, a party of engineers was fitted out and entered upon the field service of the Madison and Lafayette railroad, and in the same year contracts were made for the building of this road from Madison to Vernon, on which work was actively commenced. Contracts for grading and bridging the New
.
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ADMINISTRATION OF GOVERNOR NOBLE.
Albany and Vincennes road, from the former point to Paoli, about forty miles, were also let. Other roads were also under- taken and surveyed, and, in all respects, a stupendnous work
Very
Boris Casus Nutt. -
See page 21.
of internal improvement was undertaken. Truly did Governor Noble remark: "Upon the issue of the enterprise in which we are now engaged, our State has staked her fortunes. She
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has assumed a great responsibility, but one that is full of hope and of promise. * * * Our great system may be said to be fairly begun, and the State has embarked in a course of policy from which there is no retreat."
CHAPTER XXIII.
ADMINISTRATION OF GOVERNOR WALLACE.
W ITH the opening of Governor David Wallace's admin istration murmurs of discontent were beginning to be audible among tax payers. In the estimation of a very respect- able portion of the people, the State had undertaken entirely too much; that the very attempt to prosecute so great an enterprise . as was contemplated by the Board of Internal Improvements with the means in possession or expectancy, must inevitably involve the State in debt from which it would be difficult, if not impossible, to extricate itself, and thereby entail upon the people the worst of all evils-oppressive and ruinous taxation. These predictions, coming from intelligent lips, were well calculated to chill the ardor and extinguish the spirit of enter- prise in which these public improvements were conceived. In reference to this sad phase of public affairs, Governor Wallace, in his first annual message to the legislature in 1837, said: " But the astonishing success which has thus far attended our progress; the realization of all, and more than friends, the most sanguine, dreamed of; nay, the flattering auspices of the future, should, it appears to me, dispel every doubt, and quiet every fear which such boding prognostics may have created." These sentiments from the governor were well calculated to disguise the painful opinion which he himself possessed at this time, that the State would not be able to carry the load of public improvements with which she had burdened herself, unless the general depression of public and private enterprise
ADMINISTRATION OF GOVERNOR WALLACE. 213
throughout the whole country should be speedily dispelled. But he was an ardent advocate of the measure; indeed it was the great theme of his administration, and he never lost his faith in its ultimate success.
But if the condition of the public works of Indiana were on the decline at the close of the year 1837, it was so in a more discouraging degree at the close of 1838. On the meeting of the legislature, on this occasion, Governor Wallace said: " Never before-I speak it advisedly-never before have you witnessed a period in our local history that more urgently called for the exercise of all the soundest and best attributes of grave and patriotic legislators than the present. * * The truth is-and it would be folly to conceal it-we have our hands full-full to overflowing! and therefore, to sustain our- selves, to preserve the credit and character of the State unim- paired, and to continue her hitherto unexampled march to wealth and distinction, we have not an hour of time, nor a dollar of money, nor a hand employed in labor, to squander and dissipate upon mere objects of idleness, or taste, or amusement."
The condition of the State at this time was truly critical. There had been borrowed by the State, for internal improve- ment purposes, three millions eight hundred and twenty-seven thousand dollars-one million three hundred and twenty-seven thousand for the Wabash and Erie canal, and the remaining two and a half millions for the benefit of other works. Upon the whole of this sum, with a very inconsiderable exception, the State paid an annual interest of five per cent., which of itself was an unbearable burden. To meet this demand the State had but two small sources, independent of taxation. These were, first, the interest arising from the balances due upon the sales of canal lands, and secondly, the proceeds of the third installment of the surplus revenue, both amounting, in 1838, to about forty-five thousand dollars. This was all the visible means with which the State had to pay the enormous sum of two hundred thousand dollars without resorting to direct taxation.
In 1838, the tribe of Pottawatomie Indians, according to a
1
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HISTORY OF INDIANA.
treaty in which they had previously entered, were removed from Indiana to the western reservation. Some difficulty was experienced in their removal. Becoming hostile and refusing to emigrate, the militia was called out, and, under General Tipton, a force was marched to their villages. This induced them to leave without further opposition.
In the same year a treaty was concluded with the Miami Indians through the good offices of Colonel A. C. Pepper, the Indian agent, by which a considerable, and the most desirable portion of their reserve, was ceded to the United States.
CHAPTER XXIV.
ADMINISTRATION OF GOVERNOR SAMUEL BIGGER.
G OVERNOR WALLACE was succceded by Hon. Samuel Bigger, in December, 1840. On this occasion the state of public affairs was in a very unpleasant condition. The system of internal improvements adopted four years previous had not prospered as expected by its friends, and was at that time prostrated, and the government and people found them- selves laboring under the complicated embarrassments of this disastrous result. They felt and expressed the most intense anxiety respecting the measures which should be adopted to effect their relief. The great question was now, "What shall be done with our public improvements?" The "system" embraced ten different works, of which the most important was the Wabash and Erie canal. Their aggregate length was one thousand one hundred and sixty miles. Of this length only one hundred and forty miles had been fully completed. The amount which had been expended on these various lines was something over $5,600,000, and it required at least $14,000,000 to complete them. In August, 1839, all work
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ADMINISTRATION OF GOVERNOR BIGGER.
ceased on these improvements with one or two exceptions, and most of the contracts were surrendered to the State. This course had been adopted under an act of the legislature pro- viding for the compensation of contractors by the issue of
JUDGE C. Y. PATTERSON. See page 21.
treasury notes. In addition to this state of affairs, the legis- lature of 1839 had made no provision for the payment of interest on the State debt incurred for internal improvements. In reference to this unpleasant situation of the public works in 1840, Governor Bigger said: "Their prosecution, as origi-
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HISTORY OF INDIANA.
nally contemplated, will not be seriously urged at this time by any one at all conversant with our condition and the extent of our liabilities. Such a course would be the extreme of folly. And on the other hand, their entire abandonment, with the utter loss of the large sums of money already expended, would scarcely be less ruinous in its consequences to our credit and ultimate prosperity."
Much individual indebtedness was created during the pro- gress of the works of internal improvement. When opera- tions ceased in 1839, and prices fell at the same time, the people were left, in a great measure, without the means of commanding money with which to pay their debts. This con- dition of private enterprise, which had been incurred by an unwise State policy, rendered direct taxation more than ever inexpedient. Hence it became the policy of Governor Bigger's administration to provide the means of paying the interest on the State debt without increasing the rate of taxation, and of continuing that portion of the public works that could be immediately completed, and from which the earliest returns could be expected.
The years of 1840-41, were two dark years in Indiana; nor was the prospect brightened with the commencement of 1842. In 1841 the farmer was abundantly rewarded in the pursuits of agriculture, which, to a considerable extent, lightened the burden of the whole people.
With the assembling of the legislature in 1841, the State had reached a crisis in its affairs which had been expected by many, but which many had expected to avoid. Indiana, until that year, had succeeded in paying the interest on her public debt, and at the previous session of the legislature ample pro- vision was supposed to have been made for its payment, but circumstances beyond the control of the agents of the State rendered it impossible to obtain the necessary funds, and at this period the people were compelled to acknowledge the unwelcome truth that the credit of the State had not been sustained.
In this connection we shall briefly glance over those meas- ures, the unfortunate issue of which involved the State in the difficulties to which we now refer.
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ADMINISTRATION OF GOVERNOR BIGGER.
In the year 1827, the State of Indiana obtained from the general government a grant of land to aid in the construction of the Wabash and Erie canal, with a view to connect the Wabash river with Lake Erie. A portion of this grant was surrendered to the State of Ohio, on the condition that she would construct the canal from the boundary of Indiana to the lake. This canal had been completed, ready for naviga- tion from Lafayette, on the Wabash, to the eastern line of the State. This work was not generally regarded as a part of the system of internal improvements adopted in 1836.
In the month of January, 1836, the legislature of Indiana passed an act to provide for a general system of internal improvements, embracing a number of expensive works. The extent and condition of these works, including the Wabash and Erie canal, at the close of the year 1841, with the total disbursement thereon, may be summed up as follows:
1. The Wabash and Erie canal, from the State line to Tippe- canoe, one hundred and twenty-nine miles in length, completed and navigable for the whole length, at a total expenditure of $2,041,012. This sum includes the cost of the steam boat lock afterwards completed at Delphi.
2. The extension of the Wabash and Erie canal from the mouth of the Tippecanoe to Terre Haute, over one hundred and four miles. The estimated cost of this work was $1,500,000, and the amount expended for the same, up to 1841, was $408,855. The navigation was at this period opened as far down as Lafayette, and a portion of the work performed in the vicinity of Covington.
3. The cross-cut canal from Terre Haute to central canal, forty-nine miles in length, estimated cost $718,672-amount expended to 1841, $420,679, and at this period no part of the work was navigable.
4. The White Water canal, from Lawrenceburgh to the mouth of Nettle creek, seventy-six and a half miles-estimated cost $1,675,738, amount expended to that date, $1,099,867, and thirty-one miles of the work was navigable, extending from the Ohio river to Brookville.
5. The Central canal, from the Wabash and Erie canal, to
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HISTORY OF .INDIANA.
Indianapolis, including the feeder dam at Muncietown, one hundred and twenty-four miles in length-total estimated cost $2,299,853, amount expended, $568,046; eight miles com- pleted at that date, and other portions nearly done.
6. Central canal, from Indianapolis to Evansville, on the Ohio river, one hundred and ninety-four miles in length, total estimated cost, $3,532,394, amount expended $831,302; nine-
MACABIN HOME
CROSSCUP WEST PHILA.
BIRTH-PLACE OF JUDGE HORACE P. BIDDLE. See page 21.
teen miles of which was completed at that date, at the southern end, and sixteen miles extending south from Indianapolis were nearly completed.
7. Erie and Michigan canal, one hundred and eighty-two miles in length, estimated cost, $2,624,823, amount expended, $156,324. No part of this work was finished in 1841.
8. The Madison and Indianapolis railroad, over eighty-five
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ADMINISTRATION OF GOVERNOR BIGGER.
miles in length, total estimated cost, $2,046,600, amount expended, $1,493,013. Road finished and in operation for about twenty-eight miles; grading nearly finished, and twenty- seven miles in addition, extending to Edenburg.
9. Indianapolis and Lafayette turnpike road, seventy-three miles in length, total estimated cost, $593,737, amount expended, $72,182. The bridging and most of the grading
ASLANO HOM
CROSSCUP &WEST, MILK
RESIDENCE OF JUDGE H. P. BIDDLE, LOGANSPORT. See page 21.
was done on twenty-seven miles from Crawfordsville to Lafayette.
10. New Albany and Vincennes turnpike road, one hundred and five miles in length, estimated cost, $1,127,295, amount expended, $654,411. In 1841, forty-one miles were graded and macadamized, extending from New Albany to Paoli, and twenty-seven miles in addition, partly graded.
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HISTORY OF INDIANA.
11. Jeffersonville and Crawfordsville road, over one hundred and sixty-four miles long, total estimated cost, $1,651,800, amount expended, $372,737. Forty-five miles were partly graded and bridged, extending from Jeffersonville to Salem, and from Greencastle north.
12. Improvement of the Wabash rapids, undertaken jointly by Indiana and Illinois; estimated cost to Indiana, $102,500, amount expended by Indiana, $9,539.
There had also been paid to the Board of Internal Improve- ments, for instruments, etc., to date, $36,564.
By summing up the foregoing, it will be seen that the whole length of these roads and canals was one thousand two hundred and eighty-nine miles, only two hundred and eighty-one of which had been finished in 1841. The estimated aggregate cost of all the works was $19,914,424. The amount expended for all purposes, to that date, was $8,164,528.
The State debt, at this time, amounted to $18,469,146. In reference to this condition of the public debt, as well as the means to be employed for reducing it, Governor Bigger, in 1841, remarked: "It is due to ourselves, in this state of our affairs, to examine into some of the prominent causes which have produced the present embarrassments. The first of these is doubtless to be found in the number of large and expensive works embraced in the system of internal improvements and their simultaneous prosecution. Also the unexpected increase in the prices of provisions, labor, and materials, was such that a sum much greater than the original estimate was required for the construction of the public works. Two great errors were committed in the progress of the system. The first was, paying the most of the interest out of the money borrowed. This subjected the State to the payment of compound interest, and the people, not feeling the pressure of taxes to discharge the interest, naturally became inattentive to the policy which was pursued. Had the legislature commenced by levying taxes to defray the interest as it accrued, its amount would have been a certain index to the sums expended on the works. This of itself would have done much to check extravagant
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ADMINISTRATION OF GOVERNOR WHITCOMB.
expenditures. The second error was selling bonds on credit," which led to the most disastrous consequences.
The administration of Governor Bigger closes in the most dissatisfactory manner, though probably from no fault of the governor, unless it may have been through a too sanguine co-operation in the internal improvement system. Both at home and abroad the State was held up in an unpleasant man- ner before the gaze of the world. "Indiana cannot pay the interest on her public debt!" was sounded in every State. But Indiana was not wanting in courage in this trying hour, as we shall see, nor was the energy of her people inadequate to the difficulties before them.
CHAPTER XXV.
ADMINISTRATION OF GOVERNOR WHITCOMB.
G I OVERNOR SAMUEL BIGGER was succeeded by Hon. James Whitcomb, in December, 1843. The latter assumed the duties of executive of the State under the embar- rassing circumstances which we have been considering in the previous chapter, but he found himself ably qualified for the responsible duties of his office. "Our State," said he, to the legislature, in 1843, * * "is experiencing the distress and embarrassment consequent upon a system of over-banking, and its natural progeny, over-trading and deceptive specula- tion. *
* *. The tendency of this state of things is to relax the hand of industry by creating false notions of wealth, and to tempt to sudden acquisitions by means as delusive in their results as they are contrary to a primary law of the Author of our being. *
* * Our position, soil and climate, as well as the habits of our people, all point to that branch of labor which is devoted to agriculture as our chief reliance for lasting wealth and returning prosperity. This calling should rank
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HISTORY OF INDIANA.
with us the first in respectability, as it is unquestionably the first in importance."
During the administration of Governor Whitcomb, the war with Mexico was thrust upon the United States and prosecuted to a glorious triumph in the acquisition of immense tracts of lands in the south and west. Indiana contributed her full ratio to the troops that were sent into the field, and in a spirit of singular promptness and patriotism, adopted all necessary measures to sustain the general government. These new acquisitions of territory opened for discussion the question of slavery, in which Governor Whitcomb expressed himself opposed to any further extension of the "National sin."
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