è y u - í t" . Tenu report = I of the a = internal improvement committee = = including railroads. = = 1845. a m:\jnx.' REPORT < H r 1 ' .OF THE , f * tt V 1 * » f INTERNAL IMPROVEMENT COMMITTEE. To the Honorable The General Assembly of the State of Tennessee: The Committee appointed by the twenty-fifth General Assem¬ bly, "to investigate the affairs of, and settle with the respective In¬ ternal Improvement Companies, in which the State is a stockhold¬ er," proceeded to discharge the duty assigned them, and respectful¬ ly submit to your honorable body, the following jreport: In order to present the result of their labors in the most simple and intelligible form, they have, in the first place, presented sepa¬ rate statements, exhibiting the condition of the affairs of each com¬ pany, "with such explanatory remarks as they deemed proper and necessary, to which they have appended an aggregate statement ex¬ hibiting in one view, the information required by the second, sec¬ tion of the act under which they were appointed. 1 ' / t V HÉVi"" A. LAGRANGE AND MEMPHIS RAILROAD COMPANY. Capital stock Subscribed by individuals. Subscribed by the State,.. Receipts of the Company, viz: Paid by the State in bonds Paid by individuals—principal Interest on instalments overdue Proceeds of Fort Pickering Stock scrip sold and outstanding Total receipts Expenditures of the Company, viz: For engineering, grading, bridges, sala¬ ries of officers, &c Paid for F ort Pickering Paid for laying off town lots, and öther improvements $250,000 00 250,000 00 Paid for stock in "Pickering house".. Total receipts $450,958 23 Total expenditures. 461,300 88 Balance $10,342 65 Indebtedness of the Company, viz: Amount reported by company exclusive of interest, $63,696 00 500,000 00 500,000 00 216,250 00 166,026 21 5,685 02 60,000 00 2,997 00 450,95§ 23 426,300 92 25,000 00 7,270 00 2,674 96 461,300 88 3 B. LAGRANGE AND MEMPHIS RAILROAD COMPANY. Capital stock Subscribed by the State.. Subscribed by individuals. Receipts of the Company, viz: Paid by the State in bonds Paid by individuals Interest on instalments overduer. Stock scrip sold and outstanding. Expenditures of the Company, viz: For engineering, grading, salaries of of¬ ficers, and all other expenses incident to the construction of the road'. Total expenditures 406,355 92 Total receipts. 1 $390,958 23 $250,000 00 250,000 00 Excess of expenditures... .$15,397 69 Indebtedness of the company as réport ed by the Secretary, exclusive of irt terest Of which the committee recognize to the extent of excess of expenditures over receipts ' Amount of indebtedness not recognized by the committee Deficit of individual stockholders ascer¬ tained by deducting amount of pay¬ ment "of principal" upon individual subscription from amount paid by State 216,250 00 166,026 21 5,685 02 2,997 00 406,355 92 48,298 31 48,298 31 50,223 79 600,000 00 500,000 00 390,958 23 406,355 92 63,696 09 15,397 69 Total of deficit and defalcation 98,522 10 4 LAGRANGE AND MEMPHIS RAIL ROAD COMPANY. Abstract of Statement A. To amount of Company funds abstract¬ ed and invested at Pickering To lay off town lots and other improve¬ ments at Pickering To stock in Pickering House/ To expended on Pickering branch road To excess of actual indebtedness over balance of expenditures Cr. By amount of proceeds of Fort Picker¬ ing appropriated to the payment of debts of the Company. . * Add deficit of individuals stockholders, t Abstract of Statement B. Actual reported indebtedness of the Company— Deduct actual balance of expenditures, Deficit of Company... To which add deficit of individual stockholders... $25,000 00 7,270 00 2,974 96 20,000 00 63,696 00 15,397 69 48,298 31 50,223 79 $54,944 96 53,353 35 108,298 31 60,000 00 48,298 31 50,223 79 98,522 10 98,522 10 5 LAGRANGE AND MEMPHIS RAIL ROAD COMPANY. The Company was organized on the 15th day of June, 1836, in compliance with the requisitions of the act of incorporation, passed December 14th, 1835, (see private act, page 391) which charter has been amended, viz: See acts, 26th January, 1838, sec. 12, page 169. 18th " 1838, " ' 442. 27th " 1840, " 190. 30th Dec'ber, 1841, " 25. 2d January, 1844, " 57. 10th " 1844; " 93. See also decision of Supreme Court in the case, State against creditors of the L. and M. R. R. C. Amount of bonds received prior to act of 27th January, 1840 Amount of bonds received since pass¬ age of act, January 27, 1840.. ;• Total amount Amount paid by individual stockhold¬ ers. . . ... - ' Actual cost of road (unfinished,) Gross amount of revenue* (no tolls, re¬ ceived,) Extent of road completed Superstructures and rail laid nine miles but not put. in operation 125,000 00 91,250 00 216,250 00 166,026 21 216,250 00 N. B. Accompanying the report of the committee to the board of internal improvement will be found all the annual reports of the company (six printed and one in manuscript) which latter will be found among the interrogatories of the committee. P. S. The first statement (on page 2) presents the condition of the affairs of the company as exhibited by theirbooks. The second on page 3, exhibits the actual condition of their affairs, as ascer¬ tained by the committee. 6 LAGRANGE AND MEMPHIS RAILROAD COMPANY. In order to communicate the result of their investigation of the affairs of this company in the most intelligible form, the committee have deemed it expedient, in the first place, to make the statement hereto annexed, marked A., which exhibits the aggregate of receipts from all sources, and also the aggregate expenditures as reported by the company, from which statement it be seen that they ac¬ knowledge their receipts to have been $450,958 23, of which amount $216,250 was received upon; the State's subscription in bonds, and $¿234,708 23 was received from individual subscribers, showing an excess paid in by individual stockholders over the amount paid by the State, of $18,458 23, upon which excess the company predicated their receut application for $18,000 of bonds', the issuance of which was intercepted by a special report of the committee to his Excellency the Governor, made in compliance with the requisition of that officer. After as thorough an investigation of the affairs of the company, however, as circumstances would allow, the çammittee present the statement marked B., as exhibiting, as nearly as can be ascertained, their actual legitimate receipts and expenditures. In the statement last mentioned, marked B., the committee have not recognized as legitimate, several items of expenditure reported by the company, viz: Amount paid for Foft ¿Pickering, $25,000 Laying off town lots and other improvements,.7,270 Stock in Pickering House,.. s -V... 2,674 96 Cost of constructing Pickering Railroad, 20,000 00 • » t - * Total, .54,944 96 In relation to the investment of $54,944 96 at Fort Pickering, the committee regard it as a private adventure of the individual stockholders.. By the act of 27th January, 1840* section 1st, the company are authorized to construct lateral or branch roads, to purchase real es¬ tate, &c., &c., by increasing their capital stock for that purpose; but there is nothing in this section (upon which the company relies to justify these expenditures) authorizing the appropriation by the company, of any portion of their original capital of $500,000 for such purposes; and indeed if any ambiguity is attached to the first section, the proviso to the fifth section of the same act, is conclusive upon this subject. This section provides expressly that "this act shall not be so construed as to authorize the company to claim, or the Governor to issue, in all, including as well those heretofore is¬ sued, as those hereafter to be issued, more than two hundred and fifty thousand dollars in State bonds, and the whole of that amount with an equal amount raised from individual stockholders, shall be laid out upon the main road, from LaGrange to the Mississippi, and from Somerville to the main stem at Moscow." It is also provided by the second section, that all real estate 7 disposed of by the company shall be sold for the benefit of the in¬ dividual stockholders; from which also, it is evident, that the Gener¬ al Assembly contemplated that the individual stockholders should look to their individual resources, if they chose to avail themselves of the privileges granted by the first section of the act; viz: to pur¬ chase real estate; &c., &c. In refusing to recognize these items of expenditure, the commit¬ tee are not unmindful of the fact that they have been sanctioned by the directors on the part of the State; for although their assent, pre¬ cedent or subsequent ratification of any lawful act of the company within the spere of their legitimate powers, would be binding upon the State, yet in the judgment of the committee it will not be con¬ tended that the directors on the part of the State, acting in the ca¬ pacity of special agents, can alter the contract of their principal at pleasure, or that the State Would be bound by their assent to a vio¬ lation of the charter.' As the committee have allowed no credit in their statement marked B. for the expenditure at Pickering, they have not, for that and other reasons, chàrged the company with $60,000 proceeds of Pickering property appropriated to the payment of the debts of the company, and reported under their line of receipts to the credit of individual stockholders. In ascertaining the rèceipts of the company on individual sub¬ scriptions, to the extent of which the company were entitled to de¬ mand payment in bonds upon the State's subscription, the commit¬ tee have not recognized an item of $-5,685 02 received for interest upon instalments overdue, for the reason that they regard said inter¬ est in the charater of damages resulting to the company, on account of the defalcation of delinquent subscribers. In order, therefore, to ascertain the true deficit of individual stockholders, it is only ne¬ cessary to deduct the amount of principal baid by them, viz: $216,- 250, which shows their deficit to be $50,223 79, as will appear from abstracts marked C. and D. By statement marked A., in which the committee have taken as their data the receipts and disbursements reported by the company, the expenditures exceed the aggregate amount of receipts from all sources $10,362 65, which excess should exhibit the indebtedness of the company, as this sum would only be subject to such varia¬ tions as might be produced by their interest account; yet they re¬ port an actual indebtedness of $63,696, exclusive of interest, and which exceeds their balance of expenditure $53,353 35, and as they report no corresponding balance in the Treasury under their line of assets, they are consequently chargeable with that amount ($54,353- 35) of funds received and nöt accounted for, except the sum of $5,055 04 by which amount, the proceeds of Fort Pickering ($60,- 000) appropriated to the payment of the debts of the company, ex¬ ceeds the amount of company funds abstracted, (viz: $54,944 96) and vested at Pickering, &c., and which being deducted, leaves a bal¬ ance unaccounted for, of $48,298 21. By statement marked B., according to the data assumed by the 8 committee (and which, as they believe, presents the actual legiti¬ mate receipts and disbursements of the company) the balance, or excess of expenditure is $15,396 69 which, subtracted from the actual indebtedness reported, leaves a balance unaccounted for of $48,298 21, and which accords with the amount above stated. See abstracts from A and B, marked C. and D. The reason for this manner of stating the account, and treating the indebtedness of the company, will be obvious by reference to the fourth response of the company to the second series of interrogatories submitted by the committee, in which the company state that their indebtedness was created for grading, grubbing, motive power, &c., &c., and appears to their credit under their line of expenditures. The committee are constrained to attribute the present embarrass¬ ments of the company, in a great degree, to the unreasonable amount paid fot engineering, salaries, &c., &c., to the deficit of the, individual stockholders, and the amount of company funds abstract¬ ed for purposes of individual speculation. The company have suspended operations for the most part since 1842, and from all they could observe, the committee were forced to conclude that the completion of the road by the present stock¬ holders was not contemplated by the officers of the company, and the committee are also justified or sustained in their conclusion by the fact, that the representatives from the immediate vicinity of the road, asked for and obtained at the session of 1843-4 a charter to authorize the construction of a turnpike road from LaGrange to Memphis—from which the state of feeling prevalent in that commu¬ nity in relation to the prosecution of the work, may be readily in¬ ferred. From this view of the case, it is obvious that this enterprise, must result in a heavy loss to the State, after all the advantages that may result from a resort to the liens secured upon the private property of individual stockholders and the property of the company, by the 22d and 24th sections of the general law of 1S37-8, and the 5th section of the act of 27th January, 1840, which have been sustain¬ ed and enforced by the Supreme Court, State vs. L. &. M. railroad company, 4th Humpreys, 488: and Nashville and Kentucky turn¬ pike company vs. deliquent subscribers, decided at the present term [December, 1844,] and not yet reported. 9 FRANKLIN AND COLUMBIA TURNPIKE COMPANY. Capital stock Receipts of the Company, viz: Paid in by the State in bonds Paid in by individuals. Interest on State bonds held by the company Interest on instalments overdue paid by individuals Expenditures of the Company, viz: The expenditures having exceeded the capital stock of the Company, that limit was assumed by the committee, Revenues of the Corny any, viz: Amount of tolls collected to 1st January, 1845 Revenue from 1st to 15th January, 1845, inclusive 5» 1/ J) >> Appropriated, viz: Paid for 3 extra culverts and ditches,. " for repairs on Columbia bridge profit and loss for discount on bonds Superintendents and officers Gate keepers, including 3 qrs. of 1844 ' ; " for counterfeit money, loss on dimes, &c " cost of incidental litigation " contingent expenses for repairs since completion, attorney fees, &c., as per vouchers " order of chairman of committee of investigation 150,000 00 71,000 00 63,137 50 1,558 70 433 75 150,000 00 30,770 50 304 12 136,129 90 150,000 00 31,074 62 128 00 3,552 76 14,200 00 2,250 69 2,875 "25 140 00 790 88 6,913 04 224 00 31,074 62 10 FRANKLIN AND COLUMBIA TURNPIKE COMPANY. ABSTRACT. Assets of the Company. Due on State subscription Interest since completion of road Due from individuals after paying de¬ ficit Interest Deficit of individual stock¬ holders 7,862 50 Interest since last issue of bonds by State 2,923 53 Indebtedness of the Company, as near¬ ly as could be ascertained by com¬ mittee Amount of indebtedness of Company not recognized by committee as chargeable to State stock, Actual costofroad per mile, Total cost of road, (McAdamized,) Extent of road completed, 23 miles, 267 poles Amount of bonds issued prior to act of 25th January, 1840. Amount of bonds issued since the pass¬ age of said act © o o 00 900 00 4,000 00 1,092 00 10,786 03 30,000 00 25,100 6,292 00 00 150.000 00 22,000 00 41,000 00 20,778 03 Settlement concluded with the company in accordance with the foregoing statement, a copy of which, signed by the parties, is filed in the office of the Comptroller.. For details see "Report of Committee to Board of Internal Im¬ provements. x Incorporated, February, 1836: see acts 1835-6, page 10L Amended, November 17, 1837, acts 1837^-8, page 232. n NASHVILLE* MURFREESBORO* AND SHELBYVILLE TURNPIKE COMPANY. t Receipts of the Company, viz: Amount received of individua} stock holders Amount received of State in 5| per cent bonds Other subscriptions and receipts to the cap ital stock, viz: Amount received from Davidson courj- ty school fund. Amount received from Rutherford coun¬ ty school fund. Amount received from Bedford county school fund Amount of interest received on these three items. » Internal Improvement fund of the above named three counties. , Amount received of Davidson academy fund Amount forfeited to company by de-. faulting subscribers » Amount of interest and premium rec'd on State bonds up to the time they were disposed of in 1837, less $800 for expenses of negotiation 91,850 00 06,666 66| 13,523 64 14,234 47 12,590 33 1,726 26 11,204 96 965 46 2,815 00 3,651 61 219,228 39 12 NASHVILLE, MURFREESBORO' AND SHELBYVILLE TURNPIKE COMPANY. Expenditures of the Company, viz: Amount paid contractors for work on road, for grading, metaling, &e^, 1st January, 1838 Amount paid for land near Shelby ville, for gate house 1 Amount paid for engineering till road was complete — Amount paid for printing Amount paid agents on the road, till completed.. ¿.. ¿ Amount paid overseer, negro hire, pro¬ visions, board and hauling for road. * Amount paid Secretary . Amount paid Attorneys • Amount paid damages for right of way and court costs - Amount paid for repairs of gate bouses and feeding mules Amount paid commissioners Expense account for amount paid in terest on school fund out of capital stock » Expense account for amount paid im terest on State bonds out of capita stock, (two instalments for 1837,)... Amount paid Holmes for stock to enable him to continue his contract 209,628 54 1,035 '00 152 82 145 51 5,605 50 I » 3,918 76 600 00 197 50 1,414 57 88 68 2,315 00 225,101 88 6,064 00 3,500 00 1,750 00 236,415 88 I 17,187 49 13 NASHVILLE, MURFREESBORO' AND TURNPIKE COMPANY. SHELL YVIL LE Revenues of the Company, viz: Gross amount of tolls received on the road to 1st Jan. 1845 *.... 134,849 30 134,849 30 Appropriated, viz: Excess of expenditures over receipts.. Amount of interest on State Bonds paid out of the tolls Amount of interest on school fund of Davidson, Rutherford and Bedford, paid out of tolls - Amount on academy fund of Davidson from Feb. 13, '33, to Feb. 13, '44... Dividends (17 per cent, in all) paid on internal improvement fund of Da¬ vidson, Rutherford and Bedford.... Dividends (17 per cent, in all) paid to individual stockholders Amount paid gate keepers from Jan. 1, 183S, to Jan. 1,1845 Amount paid agent and collector of tolls from Jan. 1, '3S, to Jan. 1, '45. Amount paid secretary and treasurer._ Amount paid for building new bridge over Stones' river in 1842 Amount paid for repairs of road and bridges, Jan. 1, 1838 to Jan. 1,1845 Amount of premium in specie to pay interest on State bonds Amount of interest paid on the suit in Davidson vs. the Company, in favor of the school fund. Amount paid for negro hire in 1840 and building and repairing toll houses Amount of expenditures improperly charged by company to capital. Stock under their line of expenditure for construction. Amount paid for breaking stone and re¬ pairs of road ! 1,110 Amou nt paid gatekeepers, , ...... . 1,,640 Amount of repairing road, negro hire, , and overseer 3,220 00 Balance in treasury, Jan. 1, 1845 10,083 59 as reported, " 1,212 34 8,871 52 Chartered Jan, 4,1830; amended act Oct. 20,1832, sec. 2; Dec. 17, 1831 and Feb. 19,1836. 71 134,849 30 « 17,187 49 17,500 00 23,544 53 637 19 1,904 84 15,614 50 10,935 00 9,700 00 1,425 00 2,320 00 20,786 16 1,368 22 453 79 1,418 > 23 76 00 124,765 71 14 N., M. & & TURNPIKE COMPANY, ' In account with the State of Tennessee. By instalment of interest advanced on bonds of the State, Jan.. '38 By interest 7 years at 5 per cent do do do July, 183S.... By six years six mo. int. at 5 per cent. do do do Jan. 1839 By six years interest at 5 per cent do do do July, 1839 . By five years six mo. int. at 5 per cent. do do do Jan.,.1840.. ¿. By five years interest at 5 per cent.... do do do July, 1840.... By four years six mo. int. at5 per cent. do do do Jan., 1841. . By four years interest at 5 percent.-. do do do July* 1841 By three ys. six mo. int. at 5 per cent. do do do July, 1843.... By one year six mo. int. at 5 per, cent.. do do do* Jan., 1844.. By one year's interest at 5 per cent... 1,750 00 612 50 1,750 00 568 75 1,750 00 525 00 1,750 00 481 25 1,750 00 437 50 1,750 00 393 75 1,750 00 350 00 1,750 00 306 25 1,750 00 131 25 1,750 00 87 50——i 21,393 75 The above exhibits the amount of interest advanced by the com¬ pany on the bonds of the State, together with the interest thereon at 5 per cent., which by the act of 19th February, 1836, is re-im- burseable out of the proceeds of the State stock. Bonds is'd prior to act of Jan. 25, '40. Bonds issued since—none Amount paid in by the State Amount paid in by individuals Public funds subscribed, (see act of Dec. 17, '31, ch. 46, sec. 4. School fund of Davidson county. . School fund of Rutherford county School fund of Bedford county Internal imp't fund of above counties.. Davidson academy fund 66,666 60§ 66,666 66§ 91,850 00 13,523 64 14,234 47 12,590 00 11,204 96 965 46 15 N., M. & S. TÜRNPIKE COMPANY, In account with the State of Tennessee. To amount of dividend which should have been declared on Stale stock, say, in July, 1839, 3f per cent To five years six months interest on same, at 5 per cent To amount of do do do in July, ' 1840, at 3 per cent Four years six months interest on same at 5 per cent To amount of do do do in July, '44, at 6 percent Six mo'.s int. on same, at 5 per cent.. To deficit of dividend for July, '39, to make the State equal with individu¬ als, for excess by them received To five y's. six rno's. int. at 5 per cent. To deficit for July, '40 To four y's. six mo's. int. at 5 per cent To deficit for July, '44 . To six months interest at 5 per cent. - To State's proportion of balance in Treasury on 1st Jan., 1845. 2,500 00 687 50 2,000 00 450 00 4,000 00 100 00 885v,41 243 49 708 33 159 37 1,239 58 30 99 3,484 63- 16,489 30 The above statement exhibits the amountof nett profits upon the State stock in the company, the amount to which the State is enti¬ tled, pro ratay on account of an excess paid to individual stockhold¬ ers, in dividends, and also, the State's proportion of the balance that should properly have been in the Treasury of the company on the 1st January ,1845, over and above the amount reported. Actual cost of road per mile Extent of road, complete, 55 miles Mc- Adamized Amount of debt claimed, by company against the State not recognized.... Balance of dividend declared and un¬ paid ... 4,288 00 29,933 32 . 500 00 16 NASHVILLE, MURFREESBORO' AND SHELBYVILLE TURNPIKE COMPANY. The committee concluded a compromise and settlement with the company, subject to the ratification of the General Assembly, on the terms and conditions specified in the following exhibit, the orig¬ inal of which, signed by the parties, is filed in the office of the Comptroller. Nashville, May 28.1845. Upon investigation and settlement of the affairs of the Nashville, Murfreesboro' and Shelbyville turnpike company, this day con¬ cluded, between Robert W. Powell, chairman of the committee appointed by the Legislature to investigate and settle the affairs of the respective internal improvement companies, in which the State is a stockholder and James H. Foster, president, and Thomas S. King, Edward Trabue, Wm. F. Lytle, Levi Wade, Wm. Grey, Samuel Philips, John Caldwell and "George A. Sublett, dirèctorsof said company, it is agreed and stipulated by the respective parties, to wit: that the individual stockholders shall pay into the Bank of Tennessee at Nashville, out of the first nett proceeds realized upon their shares in said company, the sum of $25,085 90 in considera¬ tion of that amount of school fund of the counties of Davidson, Rutherford and Bedford, and academy fund of Davidson county, or at their election, vest such sum in bonds of the State of Tenner see as will yield annually, when so invested, the sum of one thous¬ and five hundred and five dollars, fifteen cents, four mills, and the said president and directors of the said company, hereby agree to pay annually, the aforesaid sum of one thousand five hundred and five dollars, fifteen cents and four mills, for the benefit of common schools in the said counties of Davidson, Rutherford and Bedford, until they shall have paid into the Bank of Tennessee, or invested in bonds of the State, as herein before provided, the sum of $25,085 90 aforesaid, subject to a credit or deduction, however, for such amount of interest as may accrue at six per cent, per annum, on the deposits or payments made by the company into the Bank of Tennessee, for the purpose of liquidating the aforesaid liability of $25,085 90 and when the said-sum of $25,085 90 shall have been paid into the Bank of Tennessee, in manner and form as hereinbe¬ fore provided, the said company shall thereafter be forever acquit¬ ted and released from any and all charges fob interest on said school and academy fund, and the said president and directors, as well in behalf of the company, as of the individual stockholders agree to, and do hereby relinquish all claims against the State-for interest ad¬ vanced by the company upon the bonds of the State, in accordance with the provisions of the act of 19th February, 1836, and all oth¬ er claims and demands whatsoever, and the said Robert W. Pow¬ ell, chairman, &c., as aforesaid, on the part of the State, agrees to and does hereby assume the payment of the interest on the bonds issued to said company, henceforth; and to relinquish all claims for arrearages of interest on said bonds, and for which the company is 17 now in default, according to the provisions of the before recited act of 19lh February, 1836, and also to assume the payment of the in¬ terest of and on the sum of $16,228 and pay over the same for tho benefit of common schools in the said counties of Davidson, Ruth¬ erford and Bedford, and the academy of Davidson, to such person or persons as shall be authorized to receive the same; said sum of $16,228 being the remainder of the sum of $41,313 73 common school fund of the counties aforesaid, and academy fund of David¬ son county invested in stock of said company by authority of an act passed 17th December, 1831, section 9; and the said Robert W. Powell, chairman, &c. as aforesaid on the part of the State, fur¬ ther agrees to, and does hereby relinquish all claims of the State against said company for proceeds upon stock owned by the State, and all other claims and demands whatsoever, and it is hereby fur¬ ther agreed and stipulated by the said parties, that the funds of the company, now in the Treasury, shall be deposited in the Bank of Tennessee at Nashville, subject to any charge against the said com¬ pany for interest on school fund, academy or other lawful demands whatever, until this settlement shall be ratified by a majority of in¬ dividual corporators and the Legislature of the State, to assemble in October next, and the remainder of said fund, then on hand, af¬ ter meeting such charges aforesaid, shall be paid over to the respec¬ tive parties, pro rata by the president of the Bank aforesaid, to be devoted, as they may elect, to their respective interests—the pres¬ ident of the Bank, representing the State in the distribution of said fund so on hand as aforesaid, and in the reception of the amount thereof due the State. The said president and directors of the said company hereby further stipulate and agree to pay over to the State semi-annually, without defalcation, the nett proceeds upon the shares of the State in said company, to wit: on the first days of January and July in each year; the first payment to be made on the first day of January, 1846, out of the receipts accruing from the date hereof. In witness whereof, we have hereunto set our hands to duplicate copies, the dale and year above written. The above recited agreement contemplates a re-organization of the company as it regards the relations of the corporators. The preferred stock (school fund amounting to $41,313 90) is to be paid over to the Bank of Tennessee, pro rata—by the individual stockholders and the State, and the State's stock of $66,666 66 will be thereby rendered available at par, as it will nett upwards of six per cent., assuming the receipts and disbursements of the company for 1844, afford reliable data, and the committee doubt not that the amount of receipts will be hereafter materially increas¬ ed. Under existing circumstances, the State could not, at any time, avail itself of the fund invested in the road, however desirable it might be to aid in the payment of the bonds issued to make said in¬ vestment, or to meet any other exigency, for the reason that the nett profits upon the State stock, (after the requisitions upon the com- 2 18 pany for divideuds upon preferred stock are discharged) are insuffi¬ cient to meet the interest advanced by the company upon the bonds issued for their benefit; and although the company is required by the act of 19th February, 1836 to pay the interest on the State bonds, yet the excess over the amount of nett profits upon the State's stock is reimbursable; hence it will be obvious to your hon¬ orable body, that the investment of the State was not only a total loss, but at the maturity of the bonds, there would have been a con¬ siderable balance due the company for interest advanced and reim¬ bursable out of the proceeds of the State's stock. ' The committee also assume on the part of the State, the payment of $973 68 per annum, for the benefit of common schools. This as¬ sumption need not affect the annual charge, either against the Bank or the Treasury, as the Legislature has entire control oVer the amount that shall be annually distributed for thé benefit of common schools, except as to the interest or dividends on the school fund pro¬ per, and as there is a large excess over the nett profits upon the school fund, now annually distributed by the Bank, it will only be necessary that the principal be preserved as required by the con¬ stitution. 19 BIG HATCHEE TURNPIKE AND BRIDGE COMPANY. Capital stock, (see charter Jan. llth. 1830, and Dec. 17,1831,) Subscription by State individuals iL Receipts of the Company, viz: From the State, June 14, 1839, « " Nov. 5, 1839. From individuals prior to June 14th, 1839 .$14,108 80 Since June 14,1839 201 87 Expenditures, viz: vTo date of State's subscription. Since June 14,1839 Apparent balance in Treasury. 25,000 00 23,800 00 6,000 00 8,000 00 15,310 87 41,840 96 10,497 34 50,000 00 28,310 87 26,338 30 26,338 30 1,972 37 The above table exhibits the condition of the affairs of the Com¬ pany as taken from their books. On the next page will be found a statement of the actual condition of the Company, as ascertained by the committee- For details, see report to committee of Board of Internal Im¬ provement. Company chartered llth January, 1830; charter amended 16th December, 1831; 19th January, 1838; (see. 21) and 19th January, 1838. See page 410. 20 * BIG HATCHEE TURNPIKE AND BRIDGE COMPANY, Capital stock, * Subscribed by State " individuals * Receipts of (he Company, viz; From the State " . individuals,...... .14,310 67 Deduct damages to bridges, roads, &c. See answers . to 1st and 2d series of in¬ terrogatories 5,500 00 Expenditures to date of > State's subscription,. 14lh June, 1839 15,840 96 Deduct amount not recogniz¬ ed by committee.- 5,500 00 Since June 14,1839 Unexpended balance in Treasury Abstact, To amount of unexpended balance in treasury To deficit of individual stockholders To funds of Company abstracted and appropriated to debts of the$|Compa- ny contracted previous to the State's subscription .. * Revenues of the Company, viz: From tolls from 1st Oct. 1S39, to 1st Dec., 1843 Appropriated, viz: To toll gatherer 965 15 To various repairs on road .501 65 Balance in treasury, December 1,1843 25,000 23,800 50,000 14,000 8,810 67 22,810 67 10,340 96 10,497 34 20,838 30' 1,972 37 1,927 5,500 3,875 26 11,347 63 1,714 66 1,466 80 247 86 21 FULTON TURNPIKE COMPANY. Capital stock of the company not limit¬ ed by charter Individual subscription State subscription Received from the State in bonds Received from stockholders Expenditures, viz: As per report of commissioners at date of last issuance of bonds, Since date of last report and application •for bonds Total expenditures. Total receipts 10,000 10,000 6,000 6,000 12,000 5,050 17,050 12,000 5,050 20,000 12,000 For the above balance, (being the excess of payments by indi¬ vidual stockholders, over amount paid on State's subscription,) the company contemplated making an application for $5,050 in bonds in April last, but by reference to their charter, passed 7th January, 1838, (see acts '37-8, page 413,) it appeared that the time allowed for the completion of the road had expired, and the committee ad¬ monished the company that no further payment would be made on the State's subscription, unless by Legislative interposition further time should be allowed them to complete the road. For all necessary information as to the progress of the company in the construction of the road, you are referred to the report and papers filed in the office of the Comptroller. Actual cost of Road. Bonds issued prior to act of 25th Janu- , ary, 1840 Bonds issued since passage of act25lh January, 1840 6,000 Amount paid by State... — » 6,000 " paid by individuals (reported). 11,050 Gross amount of revenues.. Extent of road completed Company incorporated 17th January, 1838, see act '37-8, page 413; amended, see act '37-8, page 188 and 379. 22 CHAMBERS AND PURDY TURNPIKE COMPANY. Capital stock, 15,000 Subscribed by State, 7,500 Subscribed by individuals, 7,500 00— 15,000 Receipts of the company. Amount paid in by State, 7,500 Amount paid, in by individuals, 0,000 The whole amount paid in by the State fraudulently diverted to purposes of individual speculation. FAYETTEVILLE AND SHELBYVILLE TURNPIKE COMPANY. Capital stock, Subscribed by State, Subscribed by individuals, 90,000 90,000 00- 180,000 180,000 This company organized and applied for State bonds to the amount of 616,000, which \vere signed by the proper authorities and deposited in the Bank of Tennessee, subject to the order of the company. The company not having prosecuted their 'enter¬ prise, the bonds still remain in the possession of the Bank. MURFREESBOROT AND MANCHESTER TURNPIKE COMPANY. Capital stock, Receipts of the company. Paid in by the State in bonds, 8,000 This company commenced operations within the last few months. The board of internal improvement having compromised "the mat¬ ters of disagreement between the company and the State," in ac¬ cordance with the provisions of a resolution passed 27th Decem¬ ber, 1843—see acts '43-4, page 298—by which the capital stock of the company was settled at $4,000 per mile for McAdamized road and $2,000 for graded road. 23 ASHPORT TURNPIKE COMPANY. Capital stock Subscribed by State Subscribed by individuals Receipts of the company, viz: Received from individuals - Paid by the State in bonds,. Expenditures of the company as re ported Amount of balance in Treasury unac counted for Interest from November 10, 1S40, to November 10, 1844 40,000 00 40,000 00 35,000 00 35,000 00 80,000 80,000 70,000 59,569 06 10,430 94 2,503 44 12,934 38 There are accounts against'the company for work done by indi¬ vidual stockholders, who had not formally contracted to perform any specific extent or character of work. The committee, there¬ fore, refused to recognise such accounts as legitimate expenditures of the company. If, however, the directory shall hereafter assent to or receive such work, (it being a subject matter over which they have entire control) the company will be entitled to a credit for the amount thereof. For details in relation to the condition of the affairs of said com¬ pany, see report of the committee to the board of internal improve¬ ment; also, responses of the company filed in the office of the Comp¬ troller. Incorporated 11th December, 1835; amended 11th December, 1837, and 4th February, 1842. 24 NOLENSVILLE TURNPIKE COMPANY. Capital stock Subscribed by the State.., Subscribed by individuals, Receipts of the company, viz: From the State in Bonds From individuals! ¿. Expenditures of the company, viz: For road building, as per contracts,. u bridges 11 culverts ; 3 gate-houses and land engineering, salaries, &c...... II II Excess of expenditures over receipts.. Revenues of the Company, viz: Amount of tolls received to 1st May, 1S45 Appropriated, viz: To current expenses, for repairs, sala¬ ries of officers and liquidation of the debts of the company i Balance in treasuiy Assets of the Company: Amount due on individual subscrip¬ tions ... Amount due on State subscription Indebtedness of the company not re¬ cognized by committee as chargeable to State stock Actual cost of road per mile as per ex¬ penditures reported, Actual cost of capital stock assumed as limit of expenditures Actual cost of graded and McAdamized Amount of bonds issued prior to act of 25th January, 1840 Amount of bonds issused since pas¬ sage of said act Extent of road completed, 22 miles.. 50,000 50,000 00 48,000 48,287 00 99,939 83 5,881 93 566 1,035 1,500 00 6,897 4,029 09 2,867 91 1,713 2,000 00 8,922 76 4,950 03 4,545 45 14,000 34,000 100,000 100,000 96,287 108,922 76 12,635 76 3,713 25 NOLENSVILLE TURNPIKE COMPANY. The Nolensville Turnpike Company was incorporated by an act passed 17th February, 1836, with a capital stock of $75,000 said act referring for the powers and privileges conferred, to the act in¬ corporating the Franklin Turnpike Company, passed 31st Decem¬ ber, 1S29. The charterof the Nolensville Turnpike Company was, however, amended on the 24th January, 1S3S, and the capital ex¬ tended or increased to $100,000. It will be seen from the foregoing statement of the expenditures of the company that they have exceeded their receipts by $12,635 76, in order to complete the road. Of this excess the committee can only recognize $3,713, (the amount of the assets of the com¬ pany due upon the subscriptions of the State and individual stock¬ holders,) as the company cannot bind the State for any expendi¬ ture beyond the capital stock. The company claim the right to devote the proceeds of the road to the payment of the indebtedness created by said excess of ex¬ penditure, for the reason that the lolls received upon the Franklin Turnpike road, were tobe appropriated to the construction of the road until completed, and for other reasons not necessary to recite: but this, in the judgment of the committee, they cannot lawfully do, ns the proceeds upon the State stock, after discharging current ex¬ penses for repairs, &c., are appropriated by the law authorizing the subscription by the State; and although the company may have had the power to make such disposition of the tolls, previous to the State's subscription, this provision in their charter was altered and repealed by the 26th section of the act of 19th January, 1838, to which they assented by availing themselves of the subscription and payments by the State, authorized by said act, upon the conditions therein specified. The committee are, however, constrained to say that they regard the claim of the company for an additional payment on the part of the State to aid in the liquidation of the debt of the company as meritorious, and have therefore lelt the question open,for legislative interposition, and recommend that your honorable body appoint a committee to settle with the company and ascertain the amount equitably chargeable to the Slate, and thereupon authorize the issu¬ ance of such an amount in bonds, and require the profits upon the State's stock to be paid over to the Treasurer of the State. The estimate of the cost per mile was made, assuming the ex¬ tent of the road to be 22 miles, whereas, by actual measurement, it is nearly 23 miles. The cost will consequently not much exceed $4,200 per mile. Chartered 17th February, 1836, Amended 25th January, 1838, " 19th " 1838, (General Internal Improvement Law. 26 GALLATIN AND CUMBERLAND TURNPIKE COMPANY. Capital stock Receipts of the Company, viz: Received from individuals.. the State in bonds.. » Expenditures of the Company, viz: For engineering, road building, build¬ ing toll houses, salaries, &c Revenues of the Company, viz: Receipts for tolls to 1st Jan, 1845 - Appropriated, viz: To incidental expenses, including sala¬ ry of gate keeper, secretary and treasurer To balance of expenditure for original construction To excess paid in by individual stock¬ holders Amount of bonds issued prior to act of 25th January, 1840 . Amount of bonds issued since passage of said act Extent of road completed, 3è miles, (M'Adamised) 428 38 533 10 450 00- 1.000 5,000 14,000 12,450 12,983 1,362 76 1,411 48 48 73 The committee did not complete a settlement with the above company for the reason that they had instituted suit against the Stale to compel a further issuance of bonds under the 7th section of the act of incorporation, in which however, in the judgment of the committee, they ought to fail. The subscription for the con¬ templated extension, having been made since the passage of the act of 25th January, 1840, (the first section of which repealed all laws áuthorizing the Governor to subscribe for stock in internal im¬ provement companies, incorporated or to be incorporated) and for the additional reason that the company made an application on the 16th May, 1840, in accordance with the provisions and require¬ ments of the said act of 25th January, 1840, for a reduction of their capital stock, which was formally assented to on the part of the State, all the legal forms and solemnities being fully observed, which proceeding was regular and lawful, as the company was not bound by their charter to extend the road beyond such a point on the Cumberland riveras the engineer might designate as the termi¬ nus, with the privilege of extending it to intersect the Lebanon and Nashville turnpike road. Chartered 16th January, 1838. Acts 1S37-8; page 430. 27 NASHVILLE AND KENTUCKY TURNPIKE COMPANY. Capital stock Receipts of the Company. From the State in bonds individuals IC Expenditures of the Company. For road building, &cM &c., as reported by the company, $108,579. Limit of the law fixing capital stock, as¬ sumed by the committee Revenues of the Company, viz: Amount of tolls received to 1st Jan¬ uary, 1845 Appropriated, viz: To current expenses, for repairs, sala¬ ries of officers, &c Assets of the Company, viz: Due from the State in bonds " on individual subscription Actual cost of road per mile * Total cost of road Amount paid in by State " " " individuals Extent of road completed, 27 miles 122 poles, "all graded and gravelled Bonds issued prior to act of 25th Jan uary, 1840 " issued since passage of said act.. Amount of indebtednessof the company not recognized as chargeable to State stock 47,000 46,951 60 4,872 4,872 3,000 3,048 40 3,652 13 100,000 47,000 46,951 60 9,000 38,000 5,879 100,000 93,951 60 100,000 6,048 40 Settlement concluded with the company on 15th February, 1845, a copy of which, signed by the parties, is filed in the office of the comptroller. For details, see report of committee to Board of Internal Im¬ provement. Chartered, 19th February, 1836. Amended, 22d January, 1838. Capital stock reduced in accordance with the provisions of the act of 25th January, 1840. 28 HAEPETH TURNPIKE COMPANY. Capital stock 4 Subscribed by State Subscribed by individuals- Receipts of the Company, viz: Paid in by the State in bonds Paid in by individuals, (reported). Expenditures of the Company, viz: For road building, &cM &c Reported indebtedness of the Company, viz: For surveying the route - „ „ .$24 For commissioners' salary 56 Attorney fees in suit of D. Had- ley for damages 200 For amount paid Geo. May field for damages by compromise. 163 For amount paid expenses of Jabez Owen, whilst attending to the Hadley suit 12 For printer's fees 6 50 39,000 39,000 00 39,000 39,000 00 39,000 26,000 13,000 Abstract. Amount paid in by State in bonds.. Amount paid in by individuals Bonds issued prior to act of 25th Jan uary, 1840 Bonds issued since passage of said act Revenue of the company—none Extent of road completed—13 miles. Road McAdamized. Actual cost per mile * Reported cost per mile Indebtedness of the company not re cognized by committee. Incorporated 23d December, 1837— Chancery held at Franklin, December, 1843, and resolution 14th December, 1843. 78,000 78,000 78,000 78,000 461 50 6,000 461 50 see also decree of court of 29 HARPETH TURNPIKE COMPANY. The Harpeth turnpike company was chartered December 23, 1837, (see acts '37-8, pages 141, 188, 408-9, also acts 1843-4, pa¬ ges 74-5, 291, with a capital of $80,000, and the privilege of ex¬ tending the amount to $120,000. A bill was filed against the company, however, by the authorities of the State, and upon com¬ promise, the capital of the company was reduced to $78,000, and the extent of road to be completed, to 13 miles, as will be seen by reference to a decree of the chancery court held at Franklin, in the county of Williamson, in December, 1843. The principles aed terms of said compromise and decree being also recognized and assented to by the General Assembly of the State, (see reso¬ lution passed 14th December, 1843, acts '43-4, page 291.) All the items constituting the indebtedness of the company are for expenditures chargeable to the capital stock, as they constitute a part of the cost of construction, and are not such incidental ex¬ penses as may be lawfully charged to the revenues of the compa¬ ny. The committee cannot therefore recognize such indebtedness, or any portion thereof, as the company cannot bind the State for any expenditure for construction beyond the capital stock, and which, according to their report is exhausted. The remarks made by the committee, in relation to actual pay¬ ments upon their subscriptions by individual shareholders, in the Jefferson turnpike company, are also applicable in this case; al¬ though such deposit of money was made with the Treasurer of the company, as authorized the issuance of the bonds by the authorities of the State, (the letter of the law having been complied with,) yet the committee do not feel authorized to say that any amount was paid by individuals upon their subscriptions, and actually and bona yide èxpended in the construction of the road» 30 LEBANON AND NASHVILLE TURNPIKE COMPANY. Capital stock, Subscribed by State, Subscribed by individuals, Receipts of the Company, viz: Paid by State Paid by individuals—principal, Interest received of individuals on in¬ stalments overdue, Interest received on State bonds before negotiated by company, .... For sale of compass, Premiums on sale of State bonds, .. Deduction on contracts, See., Expenditures. For road building, salaries of officers, &c. Profit and loss account—for loss on State bonds and interest accounts, Excess of expenditures over receipts, Revenues, viz: Am'tof tolls received to July 1, '44, Appropriated, viz: Repairs of road, gate keepers' salaries to July 1, 1844, Treasurer and Secretary, ..... Remodelling Stone's river bridge, ... Counterfeits and uncurrent money, . Compensation of directors, Cost of law suits, , Amount appropriated to liquidation of debts of company, 75,000 75,000 00 75,000 75,000 607 3,868 14 40 11 55 520 88 150,000 150,000 .177,643 52 12,918 96 30,791 50 8,187 81 2,250 999 78 161 05 33 50 29 07 19,130 79 30,791 50 Chartered 12th February, 1836, amended 24th October, 1837. 155,047 57 190,562 48 35,514 91 30,791 50 31, LEBANON AND NASHVILLE TURNPIKE COMPANY. 5,995 28 190,562 48 75,000 75,000 Abstract. Actual cost of road per mile, Total cost of road, --------- Amount paid in by individual stock¬ holders, — - - - Amount paid in by State, - - Extent of Road completed. Main route to Lebanon 29 miles, 66 poles; branch to Stewart's ferry, 2 miles, 185 poles, (all graded and Mc- Adamized,) - Amount of bonds issued prior to act of 25th January, 1840, Amount of bonds issued since passage of said act, — - — - - *• Excess of interest paid by State, over 5 per cent, on the indebtedness of the compay not recognized by committee, Interest paid by individual stockhold¬ ers—excess of subscription, 1,266 35 On settlement of the affairs of the company, the committee re¬ garded a portion of the reported indebtedness of the company as equitably chargeable to proceeds of State stock. For details, see written settlement signed by the parties, filed in the office of the Comptroller. 31 mi's 251 p. 70,000 5,000 659 35 607 00 , 32 JEFFERSON TURNPIKE COMPANY. Capital stock Subscribed by the State... " individuals. tt Receipts of the Company, viz: Paid by the State in bonds " " individuals, (as per report of the company) Expenditures of the Company, viz: For road building, including engineer¬ ing, salaries, and all other charges, ($6,000 per mile, reported).-.. ...-. ; 8,000 1,000- 9,000 28,000 6,000 6,000 9,000 9,000 Excess of expenditures over receipts.. Asests of the Company, viz: Amount due on State subscription " " " individual " Amount paid in by State prior to act of 25th January, 1840 " paid in by the State since passage of said act, to date of response of eompany to committee Since date of response to committee Amount paid in by individuals Reported cost of road per mile....... Actual cost of road Extent of road 15 miles, (all completed except bridges) Revenues of the Company—none Incorporated 23d January, 1838. See also decision of Supreme Court in the case of State vs. J. Turnpike Co. 90,000 90,000 90,000 81,000 90,000 33 JEFFERSON TURNPIKE COMPANY. The Jefferson Turnpike Company was incorporated on 23d of January, 1838, (see acts of '37,-8 page 438.) As it regards the receipts from individual stockholders the committee has stated them at the amount reported. From the manner in which the af¬ fairs of the company have been conducted, they could avail them¬ selves of no reliable data which would enable them to ascertain the actual payments by individual stockholders. The contractors were required to become stockholders, and received, probably, one half of the consideration upon their respective contracts in stock of the company, and as no value attaches to the stock,.the presumption is that they bid éntirely in reference to the amount derivable from the Stale. No practical good would have resulted from au effort of the committee to ascertain the actual payments by individual stockhold¬ ers, as will be seen by reference to a decision of the Supreme Court in the case of the State vs. Jefferson Turnpike Co., reported in 2d Humphreys, page, which asserts that the assent of the agents of the State to any act within the sphere of their delegated powers is binding upon the State, and that the manner of letting the road to contractors is a subject matter over which they have control, and that their acts will be recognized and enforced by the Judiciary, unless fraud or collusion, be proven. The committee feel it to be in¬ cumbent on them to make the foregoing statement, inasmuch as by the law under which they are appointed, they are required to as¬ certain and report the actual amount paid in, as well as the actual amount expended in the construction of the respective roads. The company report an indebtedness of $6,000,, of which the committee have taken no notice in the foregoing exhibit, for the rea¬ son that the road is contracted to be completed at $6,000 per mile, and if the expenditure should exceed that amount, the State will not be bound for any portion of such excess. 3 34 COLUMBIA, PULASKI, ELKTON AND ALABAMA TURNPIKE COMPANY. Revenues of the Company, viz: To amount of tolls collected Appropriated, viz: To liquidation of the debts of the com¬ pany 2,850 29 To current expenses for re¬ pairs, salaries of officers and State Com'ers 4,001 37 Actual cost of road per mile Total cost of road Amount paid in by individual stock¬ holders - 1 Amount paid by the State in bonds Extent of road completed 45 miles 149 poles - Extent of road unfinished 4£ miles. .. ., Amount of bonds issued prior to act 25th January, 1840 Amount of bonds issued since passage of act 6,851 66 6,851 66 5,586 67¿ 254,000 118,026 73 * 122,000 12,000 110,000 The committee concluded a settlement with the company on the 24th January, 1845, the terms of which were signed by the parties, the original of which is filed in the office of the Comptroller, and will be found accompanying their report to the board of internal improvement«. By reference to the responses of the Company, accompanying the report of the board of internal improvement, it will be seen that they reported a payment of $181 50 to the commissioners ap¬ pointed by the Governor, in accordance with the provisions of 10th section of the act of 25th Jan., 1840, which, in the judgment of the committee, was properly chargeable to the treasury of the State. They therefore refunded to them the sum of $147 50, that being the extent to which they produced vouchers for said payment, which vouchers also accompany thé report of the committee to the board of internal improvement. 35 COLUMBIA, PULASKI, ELKTON AND ALABAMA TURNPIKE COMPANY. Capital stock Subscribed by State " individuals ....... Receipts of the Company, viz:' Paid by the State in bonds,. " individuals Interest on instalments over due Expenditures of the Company, viz: For road building, bridges, culverts and superintendents, * For engineering, toll houses, gates, &c. Indebtedness of Company, viz: For road building and other expenses not reported by the company under their line of expenditures Cr. By amount of revenue appropriated in liquidation of above indebtedness.. Interest to 24th January, 1845... 125,000 125,000 122,000 118,026 73 6,500 237,550 91 8,975 82 16,309 96 2,S50 29 13,459 67 1,495 54 Of the above there is due from indi¬ viduals 9,464 24 From the State 5,490 97 Deficit of individual stockholders.. ... Amount of indebtedness not recognized by committee^ as chargeable to pro¬ ceeds of State stock.. 14,955 21 14,955 21 3,973 27 9,464 24 * 250,000 250,000 246,526 73 246,526 73 Chartered Feb., 1836. See act 1835-6, page 102; amended Jan. 19, 1838. (General Int. Imp. Law.) 36 NASHVILLE AND CHARLOTTE TURNPIKE COMPANY Capital stock Subscribed by State Subscribed by individuals...... f.... Receipts of the Company, viz: From the State in Bonds - " individuals ...... Expenditures, viz: For constructing roads, salaries of offi cers, &c Revenues, viz: Nett amount of tolls received to 1st January 1845 Appropriated, viz: Amount paid dividends to State and in¬ dividual stockholders..., Amount of deficit of individual stock¬ holders Interest on do * Amount of dividends declared and un¬ paid, due to the State on 1st January, 1845 Actual cost of röad per mile Total cost. Extent of road completed, 10f miles, M'Adamised , .-Amount of bonds issued prior to act of J£5th January, 1840 . Ajnount of bonds issued since passage pf-said act 30,000 30,000 30,000 29,700 11,592. 9,192 300 89 75 1,200 5,607 SO 59,700 30,000 00,000 60,000 60,000 59,700. 59,700 Settlement concluded with the company in accordance with the . above exhibit, signed by the parties on the 22d day of April 1845. .For details see report to board of internal improvement. Çbar- January, 1838; acts 1837-8, page 295. 37 COLUMBIA CENTRAL TURNPIKE COMPANY. Capital stock Subscribed by State .. Subscribed by individuals. .... Receipts of the Company ¡... Expenditures of the company, viz: For constructing road, building gate, houses, &c., as reported by Co. $306,- 500; capital stock assumed by com¬ mittee as limit of the expenditures. Revenues viz: Amount of tolls rec'd to Jan. 1,1845. Appropriated, viz: To current expenses, for repairs, gate fixtures, See., Balance in treasury 1st Jan., 1845 Extent of road completed, 69% milës 13 miles M'Adamized, 29 gravelled 27% graded - Actual cost of road per mile For M'Adamized road per mile. Gravelled " Graded " Amount paid in by State. " individuals, as per report Amount of bonds issued prior to act of 25th January, 1840...* Amount of bonds issued since pas sage of said act Excess of expenditure relinquished by co Amount of expenses not recognized by committee as chargeable to revenues of the company — . * Incorporated 26th Dec.,, 1Ö37. 6,000 6,000 1,000 150,000 150,000 69,000 81,000 6,500 300>000 300,000 300,000 300,000 433 50, 6,933 50 38 CLARKSYILLE AND RUSSELVILLE TURNPIKE COM¬ PANY. Capital stock, Subscribed by State, Subscribed by individuals, Receipts of the Company, viz: On State subscription . . On individual subscription Interest on instalments overdue Expenditures of the Company, viz: Constructing, &c., &c., original actual cost , Excess of expenditures Amount of revenue derived from tolls. Appropriated, viz: To balance of expenditures ». To current expenses To dividends declared 37,500 . 37,500 00 37,500 36,085 30 89 90 75,000 75,000 73,666 20 78,552 4,851 32 18,210 72 4,851 32 4,297 66 9,031 25 18,180 23 30 40 Balance in Treasury, Oct. 1,1844... From the above statement it will be seen that the individual stock¬ holders in the Clarksville and Russelville turnpike company have failed to pay in the entire amount of stock subscribed, although up¬ on their certificate to that effect they have obtained $37,500 from the State, which is in full of the State's subscription; and as the company had no power, per se, to reduce the capital stock, the com¬ mittee, therefore, in their settlement, charged them with the ascer¬ tained deficit, together with interest from the date of issuance of the last bonds paid in by the State upon its subscription. There is due, therefore, from the said company $1,679 95 for deficit upon stock, and $1,327 50 for dividends upon State stock declared and unpaid, exclusive of $30 49 balance in the Treasury on the 1st Oc¬ tober, 1844. See abstract on next page. 39 CLARKSVILLE AND RUSSELVILLE TURNPIKE COM¬ PANY. Abstract. * -— Deficit of individual shareholders Interest from 30th October, 1841', date of last issuance of bonds ....... Amount of dividends declared on State stock unpaid Actual cost of road per mile Total cost Amount paid by individual stockholders Amount paid by State prior to act of 25th January, 1840, $15,000 Since passage of said act $22,500 Gross amount of revenue from tolls ... Appropriated, viz: Excess of expenditures - Current expenses..' - Dividends declared. i 1,414 70 265 25 1,679 95 1,327 50 3,007 45 6,039 80 78,517 52 36,085 30 37,500 4,851 32 4,297 66 9,031 25 18,210 72 18,180 23 Extent of road completed—13 miles. Company incorporated January, 1830, see acts page 222, amend¬ ed January 20, 183S, page 317, 40 GALLATIN TURNPIKE COMPANY. Capital stock . — Receipts of the company, viz: Paid in by the State in bonds, « tc « individuals, (principal,) Interest on instalments overdue,........ Expenditures of the company, viz: For constructing road, grading, metal¬ ling, &c., For stone-work and bridges, ..... For profit and loss—discount on bonds sold and interest ac't., 132,500 * 130,506 19 2,004 14— 266,249 01 10,077 53 21,683 04— Excess of expenditures over receipts: Revenues of the company, viz:. Amount of tolls collected to 1st Janua ry, 1845, Appropriated, viz:, To rebuilding and repairing bridges, re¬ pairs upon road, salaries of officers, costs of suits, attorney's fees, inter¬ est on indebtedness of company, &c. Deficit of individual stockholders,.... Amount of indebtedness not recognized by committee as chargeable to pro¬ ceeds of State stock exclusive of in¬ terest 33,465 38 33,465 38 2,004.14 23,999 .25 265,010 33 298,009 58 32,999 25 41 GALLATIN TURNPIKE COMPANY. Actual cost of road per mile,. 6,000 Total cost, (limit of the law assumed).. 297,000 Amount of stock paid in by the State,.. 132,500. " of stock paid in by individual stock¬ holders, 130,506 19 Extent of road completed, 49£ miles, 34£ miles McAdamized, 15 miles gravelled Amount of bonds issued prior to act of • 25thJanuary, 1840, . ' 99,500 " of bonds issued since passage of act,, 33,000 t The committee concluded a'settlement with said company on the 6th February, 1845, the terms of which were drawn up in writ¬ ing, and signed by the parties, and which is filed in the office of the Comptroller, accompanying the report of the committee to the Board of Internal Improvement, in which it is stipulated that the State advance the said company $9,000 in 5 per cent, bonds when the authorities of the State are officially informed that the company have conformed to, and performed the stipulations required of them, by the terms of said settlement. For reasons influencing committee to conclude settlement on the basis adopted, see Report to Board of Internal Improvements; see also decisions of Supreme Court in the ease Hopkins et. al, vs. the Creditors of the Gallatin Turnpikq Co. Also, decision at Dec. term, 1844, not yet reported. Incorporated January 5, 1830, Amended, November 28, 1831, " 30, 1835, January 19, 1$37, (Gen. Internal Imp. Law.) February 19, 1836. « « 42 . LEBANON AND SPARTA TURNPIKE COMPANY. Capital stock—by charter. .. Subscribed by the State Subscribed by individuals.. Receipts of the Company, viz: Paid in by individual stockholders. Paid in by State Expenditures, viz: . . Road building, bridges, &c Engineering Paid Secretary and .Treasurer Paid president of company.. * Paid commissioners appointed by Gov¬ ernor Paid for books, printing, &c Amount paid for sanding road... Discount on bonds sold.... .*. Excess of expenditures over receipts.. Revenues, viz: Amount of tolls received to 14th De¬ cember, 1844 >»' Appropriated, viz: * Repairs of road Attorney's fees, court costs and dam¬ ages Salaries of gate keepers, treasurer and superintendant Loss on dimes Incorporated 2d December, 1837. 168,383 31 2,982 22 1,925 68 1,331 94 Í35 25 * 54 25 150 50 250 00- 150,000 158,630 175,213 15 16,583 15 4,000 2,747 43 LEBANON AND SPARTA TURNPIKE COMPANY. No settlement was concluded with the company, inasmuch as there were many unsettled transactions between the company and third persons, and with others, questions in litigation. For this and other reasons, the committee deemed it proper to present the fore¬ going statement of the condition of their affairs, and leave the ques¬ tion of the relations of the corporators open for legislative interposi¬ tion. It will be seen from the foregoing statement, that the com¬ pany have exceeded their capital in their expenditure for construc¬ tion $25,213 15, and their receipts $16,583 15; individuals having paid in $8,630, as per report, more than the amount paid by the State. The company was chartered on 2d December, 1837, with a capital of $150,000 and it is provided in the 1st section of the charter, that the road shall not extend more than 32, nor less than 22 miles from Lebanon, and although it was clearly ascertained, on letting the road to contractors, that the capital would not be suffi¬ cient to construct 32 mijes of good road, together with the bridges and other incidental expenses, yet it was apparent that the invest¬ ment of the State, as well as of the individual stockholders, would be a total loss unless the road should be extended to the top of Snow's Hill, on the route to Sparta, (a distance of 32 miles from Lebanon,) as the travel from the east could not approach the road by any other route, and that being almost impassable, they were compelled to construct a road to that point. Hence the excess of expenditure. The company, for the purpose of consolidating their debts, ef¬ fected aloan of $5,000 with which they purchased some 10,000 or 12,000 dollars of outstanding claims against them, which should be taken into consideration on a final adjustmentof their affairs; The committee cannot recognize the expenditure beyond the capital stock, or the debts reported by the company due for , money bor¬ rowed, as, by their charter, they have no power to borrow money and bind the proceeds of the State's slock therefor: yet, if in the judg¬ ment of your honorable body, the interests of the company, and consequently of the State, as a stockholder, have been promoted by the extension of the road, and other acts deemed irregular by the committee, they doubt not adequate measures will be promptly adopted for the relief of the individual corporators. 44 FORKED DEER TURNPIKE COMPANY. Capital stock Subscribed by State. " by individuals. Receipts of the Company, viz: Paid in by State in bonds " in by individuals " by individual stockholders, ad ditional call by way of contribution Expenditures of the Company, viz: For construction of road, including pro-1 fit and loss on bonds (for discount on same Excess of receipts over expehditares. Revenues of the Company, viz: Amount of gross receipts to 29th March, 1844..... Appropriated, viz: To undertakers for repairs Balance in treasury 7,000 7,000 00 7,000 7,000 915 60 14,500 00 14,000 14,000 14,915 60 1,223 685 28 537 72 14,500 415 60 ■ The company report an indebtedness of $371 11, which, could not exist or be due and owing by the company, if the individual stockholders actually paid in the excess of $13 08 per share as re¬ ported by the secretary; as it will be seen, from the foregoing state¬ ment of receipts and expenditures, that there should have been a balance in the treasury on the completion of the road of $415 60, which, together with the first available nett receipts, should be de¬ voted to the liquidation of the $915 60 excess paid in by individu¬ al stockholders. • < It appears from the above statement, that there should have been in the treasury of the company $537 72; but the secretary, in his responses to the committee states, that "there'were other repairs made and paid for, in the year 1843," and not included in the above stated amount of $6S5 28, appropriated to repairs. For details see Report to Board of Internal Improvements. Incorporated 17th February, 1836, Amended 27th January, 1838, chapter 224, sections 10, 11. 45 CUMBERLAND AND STONE RIVER TURNPIKE COMPANY. Capital stock, 216,000 Subscribed by the State, 108,000 " " individuals, 108,000 00 216,000 Receipts of the company, viz: Paid in by the State in bonds, • 107,000 te tt u individuals, 1 Interrogatories submitted to the company by the committee, and no response received. Incorporated 25th January, 1838. HIWASSEE RAILROAD COMPANY. •Capital stock, (by orginal charter,) Subscribed by State, " " individuals, Receipts of the company. Paid in by the State in bonds, " " individuals, U 357,000 600,000 Chartered, 1836; see acts 1835-'6, page 23, Amended, January 19, 1838, (sec. 23,) " « 27, 1838, (sec. 18, 19,) " Dec. 26, 1843. Inasmuch as suit had been instituted against this company by the Attorney General ofthe State, the committee did not attempt a set-r ■tlement with it; and indeed, as it would have required sixty to one hundred days to have elicited all the facts and information necessa¬ ry to justify them in entering upon asettlement, by which the State would have been concluded, they believed their time would be more usefully employed in settling with companies whose stock was pro¬ ductive, as in such cases, if deficits or defalcations were ascertained, •the State could avail itself of the provisions of the 24th section of the act of 19th January, 1838, to enforce their payment. 46 Amount of bonds issued prior to act of 25th January, 1840. (5's) I (54's) Amount of bonds issued since passage of act 25th Jan. 1840. LaGrange and Memphis R. R. Big Hatchee T. & Bridge Co.,. As h port Turnpike Fulton " Columbia, Pulaski, Elk. & Ala. Gallatin Lebanon and Nashville Clarksville and Russellville Nashville and Charlotte Columbia Central Jefferson Harpeth Franklin and Columbia Lebanon and Sparta Nolensville Nashville and Kentucky Gallatin and Cuberland... Chambers and Purdy - - - Hiwassee Rail Road - - Fayetteville and Shelby ville Cumberland and Stone's river Pelham and Jasper - - - Forked Deer - - - - Murfreesboro' and Manchester Nashville, Mur. and Shelbyville 14,000 15,000 12,000 68,000 30,000 15,000 30,000 69,000 9,000 26,000 22,000 14,000 14,000 9,000 1,000 7,500 260,000 20,000 7,000 7,000 91,250 20,000 6,000 110,000 33,000 5,000 22,500 81,000 28,000 13,000 49,000 61,000 34,000 38,000 5,000 97,000 87,000 37,000 V 8,000 649,500 263,166| 825,750 ♦See report to board of internal Improvement., !>^ o 13 s *8 g "o ^ 2 o 'S « ß. 2 * TJ -C ^ ¿ Q_ ® ©h» O H Q-w >5« ü o ^ 0> * O w o2J2W rH t© »© © d 2 © © Oí Oí Oí CO © t© O i> © CO rH' © © CO rH O Ol © CO © © © CO © © Ol ï> CO rH © © © rH rH © 00 © © CO © i© 00 to cT Oí Ol Oí oí © tO CO s 5% .2 § to Q- j¿ a «* ,® Q H CO 00 CO © CO 00 ï> rH Ci rH co wœo 00 to oí -H tH o o «o o î> o CO o CO (M o o t© Oí 00 I> o tH *» o ï> CO CO i© o © ■*£ î> <** ce -rt ° 3 -S -n= 2 • . — •<— »C a» o >.¿d fcf « C ü Q.5 ü 0> o CD os i> CO o Oí o Oí >© O lO >© l> rH to © CO Oí rH © i> © CO rH © © © tr © i> 00 00 © © © CO CO of rH © o rH 00 rH S"S«- o o a M ** S y o ^ 2h o rH &,rH t© Oí í> © Oí Oí Oí tfí Hm •O ffi H W rH rH 00 rH ui|»MW ©©t©C0C©OíCíí> Hn r-l CO H rH Oí CO Oí Oí CO «o »© "O <9 o u . u- o ors "S S ô S eu i> CD G0 O O Oí 00 00 «S © © t© © î> o O O Oí ODO Cl CO O . © © © »o 2.°i°~2. s ©qw t©©i©©tO;©©©© CO CO O r-l rH 01 t© l© © CD rH CO 00 00 Oí §A o — e 03 s-g —; O • ¿Xl T3 ou. 2 H o S Í»0000000000000000©00 lOOOOOOOOOO©©©©©©©©© Oí©©©©©©»©©©©©©©©©©»©© ©rHt©©©}>©rH»O00i>©i>i> H H CO ■ 0lC0ï>C0C0tOC0C0t>l>>rHrH >© Oí rH rH tH CO ci|n © © O © © © © © © © © © © © © n #% n «s I> rH © rH rH i> 00 © © win © 00 CO i> 48 La Grange and Memphis R. R. Big Hafchee T. & Bridge Co... Ashport Turnpike F ulton •' Columbia, Pulaski, E. & Ala... Gallatin ,.... Lebanon & Nashville Clarksville & Russelviile Nashville & Charlotte .i. Columbia Central Jefferson Harpeth Franklin & Columbia, Lebanon & Sparta... Nolensville Nashville & Kentucky.. Gallatin & Cumberland Chambers & Purdy ,. Hiwassee railroad Fayetteville & Shelbyville Cumberland & Stone's river Pelham & Jasper Forked Deer. Murfreesboro' & Manchester Nashville, Mur. & Shelbyville.. Interest on instalments over due, re¬ Amount paid Amount paid ceived from in by State. in by indivi- individual. duals. _ stockholders. 5,685 02 216,250 166,026 21 14,000 8,810 67 35,000 35,000 • 6,000 11,050 6,500 122,000 118,026 73 2,004 14 132,500 130,506 19 607 00 75,000 - 75,000 80 90 37,500 36,085 30 30,000 29,700 150,000 150,000 37,000 39,000 » 433 75 71,000 63,137 50 ' 75,000 83,630 . 48,000 48,287 47,000 " 46,951 60 6,000 6,450 00 7,500 357,000 - 107,000 44,000 7,000 68,000 ' 66,666 66 15,310 81 49 DEFICIT. Of the amount reported ($74,60-5 33) undertheline of deficit some $20,000 00 has been .adjusted by the terms of the settlements con¬ cluded. INDEBTEDNESS. The indebtedness of the companies in a majority of instances re¬ sulted either from a failure of the individual stockholders to pay in their subscriptions, or from the fact that the expenditure for con¬ struction exceeded the capital stock subscribed. _ In all such cases the committee refused to recognize their indebt¬ edness as properly chargeable to proceeds of the State's stock, (ex¬ cept in one or two instances on special grounds.) Of the $111,352 92 indebtedness not recognized (and which was absorbing the profits upon the State's stock,) $101,968 66 have been paid or assumed by the individual stockholders of the respective companies so indebted. If a company may in their expenditure for construction, exceed their capital stock, and bind the State's stock, or the proceeds there¬ of for indebtedness thus created, the entire stock of the State may be rendered unproductive for an indefinite period; to concede such power is virtually to admit that a company may, without legislative interposition, increase its capital stock at pleasure, and that the sev¬ eral contracts or charters, together with the general internal improve¬ ment act of 19th January, 1838, limiting the subscription of the State, are dead letters and operate no protection to the State what¬ ever, which in the judgment of the committee would not be contend¬ ed by the most liberal constructionist upon the subject of their com¬ mon láw capacities or incidental powers, (in view of which, how¬ ever, legislators cannot exercise too much vigilance in granting cor¬ porate franchises.) Although the committee; had much difficulty upon this subject, owing to the fact that many of the companies were largely indebted, yet they adhered to the opinion that by the 26th section of the act of 19th January, 1838, the nett proceeds upon the State's stock were placed beyond the control of the companies, as by the said , section of the said act, the profits upon the State's stock are appro¬ priated; consequently the State is riot concluded by the assent of its directors (they being special agents merely) to any disposition or appropriation of said profits, INTEREST ON INSTALMENTS OVERDUE. Fifteen thousand three hundred and ten dollars eighty-one cents was reported by the several companies as having been paid by in¬ dividuals on instalments overdue, which amount had been by them credited to individual stockholders in aggregate; this, however, the committee refused to allow, regarding such payments as more pro¬ perly in consideration of damages resulting to the companies, ana not 4 50 such payments as would authorize the issuance of a corresponding amount in bonds upon the State's subscription. DEFALCATION. Of the $70,107 82 defalcation reported, only a small portion has been paid or satisfactorily adjusted. Under this head will be found all balances of receipts acknowledged by the respective companies, and not accounted for in their line of expenditure, or diverted to such purposes as in the judgment of the committee were not author¬ ized by tneir charters. DISCOUNT ON STATE BONDS.. Though a considerable item, the committee have recognized as properly chargeable to account of profit and loss by the respective companies, the loss sustained in negotiating bonds of the State, up¬ on the general principles of law applicable to partnerships; though the State is discharged of her subscription by payment in bonds, without Regard to their current value, yet, when these bonds are re¬ alized the discount is a loss of the Company. ACTUAL COST. From what has been said in another part of this report, your hon¬ orable body will readily perceive that the committee could not, in every instance, avail themselves of reliable data to enable them to ascertain the actnal oost of construction. The interest of the State has been compromised in several in¬ stances by the manner of letting the respective roads to contractors. Severpl of the companies having done this in such a manner as, in the opinion of the committee, was calculated to preclude, competi¬ tion in bidding In some instance's by letting the entire route in one contract, and in oLhers by requiring successful bidders to become stockholders and to receive one half the consideration for construc¬ tion in stock of the company.—Consequently in all cases where speculation was the primary, and the general utility or necessity of an improvement scartíely a secondary consideration in organizing a company, the contracts were confined for the most part to the origi¬ nal corporators, and their bids were made in reference to the amount derivable from the State upon their respective contracts—the stock in such cases being wholly unproductive. A capital defect therefore in our system was the failure to consti¬ tute at its inception, an effectual police to protect the interests of the State by exercising such general supervision over, the contracting and reception of the roads and adjudication of the accounts of the several companies, as would have ensured the bona f de payment and actual expenditure of the attiount subscribed by individuals. In the absence of such police, by a mere compliance with the forms of the law, the companies have been enabled to obtain bonds 51 «pon the State's subscription; and consequently from their general direction under existing laws, the subscription of individual capital in those enterprises has not operated to protect the State against un¬ productive investments. Where roads were let to or bid off by contractors at six thousand dollars per mile for construction, the committee have simply stated the reported cost. This being a subject matter over which the di¬ rectory have entire control, the State is consequently concluded by their act in the premises. (See Humphreys, State vs. Jefferson turnpike co.) REVENUES. Twenty-two to twenty-five thousand dollars per annum will be realized upon road stock from and after the first of January, 1846; and should your honorable body set apart this fund for the redemp¬ tion of the bonds of the State, as contemplated by the 26th section of the act of the 19th January, 1838, the' small addition thereto of $10,000 per annum will constitute a sinking fund adequate to the li¬ quidation of the entire debt created for purposes of Internal Im¬ provement. The revenues heretofore received by the several companies that had completed their respective roads after meeting current and in¬ cidental expenses had been appropriated to the payment of outstand¬ ing debts, to which (though unauthorized by law) the committee as¬ sented in all cases where there was a balance due them on the State's subscription. Legislative interposition will be 'necessary to prevent persons from passing through the gates or going around them after having travelled upon the roads without paying their tolls.—This may be effected by constituting the offence a misdemeanor, indictable on presentment; or if your honorable body should not be disposed to adopt this suggestion, the committee respectfully propose, that in all cases of appeals (rom judgments rendered by Justices of the Peace for the penalties prescribed for the offence above named, that it shall be made the duty of the attorney general of the district to prosecute the same, and if deemed necessary, a fee might be fixed and taxed in the bill of costs against the persons so offending. In order to make the remedy effectual the judgment should be a lien upon the property in possession of the offender at the time of committing the offence, from the rendition of the same by the justice of the peace. The interposition of the legislature is also necessary to the pre¬ servation and protection of the roads, to prevent encroachments up¬ on their chartered limits, the obstruction of ditches, &c-, &c. The committee would also respectfully suggest to your honorable body the propriety of passing a general act authorizing a reduction of the number of directors; in several companies the number is so large that it is with difficulty a majority can be convened for the trans¬ action of their business* 52 By the act of the 30th January, 1844, sec. 1st, the companies are required to make annual settlements with the comptroller of the trea¬ sury; showing the nett amount of profits made each year, and to pay into the treasury such portion thereof as shall belong to the State. The committee would respectfully recommend that this act be so amended as to require semi-annual settlements at stated pe¬ riods, say on the 1st day of Jan. and July of each year. Respectfully submitted, ROBT. W. POWELL, Ch'mn. of Com. REPORT of the COMMISSIONERS, APPOINTED TO SUPERINTEND THE CONSTRUCTION OF THE STATE HOUSE. To the Hon. Speaker of the House of Representatives: The Commissioners appointed to superintend the construction of the State House, submit the following report: That shortly after theii appointment they met together and or¬ ganized themselves into a board by the appointment of the late Gen. W. Carrole, Chairman.—The two subjects which first pre¬ sented themselves to the attention of the board, were the selection of an architect and the procurement of a place for the building. The Act of the General' Assembly creating the board, prescrib¬ ed the employment first of a suitable architect " who shall lay down a plan for the Capitol"—and precluded the board from the privi¬ lege of advertising for plans and of offering a premium for the one that might have been selected, which would have called forth not only the best architectural talent in the country, but also a great va¬ riety of plans. Under these circumstances, the board determined to move cau¬ tiously, at the risk of delaying the commencement of the work, and if possible not to make a mistake in this first and most im¬ portant step to its future progress—to wit; the selection of the ar¬ chitect. After various enquiries and much correspondence with persons in the northern and eastern cities—we learned that the, services of Wm- Strickland Esq. of Philadelphia could be secured as the ar¬ chitect—a gentleman who had devoted a life, now somewhat ad¬ vanced, to this profession—that he had commenced it on the Cap¬ itol at Washington under La Trobe, its architect; had superintend¬ ed many of the public buildings in this country, and had person¬ ally visited and examined the most remarkable public edifices in Europe. That while on all occasions he had displayed the utmost good 53 taste in the buildings erected by him, he never sacrificed solidity for show—the useful, for the merely ornamental; and that his esti¬ mates of cost were to be implicitly relied on. The board at once determined to employ him at a salary of $2500 per annum, and in¬ vited him to repair to Nashville. He arrived here about the 1st of May last, and commenced the preparation of plans. The one sus¬ pended in the office of the Secretary of Slate was finally selected; —For a full and detailed description, of which, with estimates of cost of construction made out by the architect, we beg leave to re¬ fer you to the papers, herewith submitted, marked A, as part of this report. In regard to the plan, the Commissioners may be allowed to add a word, particularly as the impression is entertained by some that it is too large in dimensions, and beyond the present or future wants of the State. The building from out to out, exclusive of the porticos, is 109 by 206 feet 10 inches, and contains under its northern end a cellar so constructed as to light and ventilation, as to afford a most safe and suitable depository for the arms of the Slate. The cellar under the southern end is intended for fuel. In the northern end of the basemónt story, rooms are provided for the Supreme Court of the State and Federal Court, and in the southern end are the office for, the Secretary of State, and rooms adjoining for the reception of the books, papers, maps &c., con¬ nected with that office, which already require much space and are rapidly accumulating:—as well as offices for the Governor, Comp¬ troller, Treasurer and Superintendent of Publie Instruction. On the main floor are the Halls for the Senate and House of Representatives, a Library room and small rooms for the Speak¬ ers, Clerks and Committees of the two Houses and Librarian. It is the opinion of the commissioners that all the rooms in the house can be put to some useful and appropriate purpose, and that if error has been committed at all in the dimensions of the house, it is on the safe side. For its exterior, in the body of the building, the Ionic order has been adopted—an order which is equally re¬ moved from the elaborate and too costly Corinthian on thé one hand, and the too plain and common place Doric on the other. There is nothing about the building to offend the taste of a plain and republican, but enlightened people—nothing too elevated or too grand for the State of Tennessee, whose population ere long will reach to two millions, and whose resources, agricultural, mineral and manufacturing, place her in the front rank among her sister States. Shortly after the organization of the board, its attentioh was drawn to the importance of adding to the Capitol grounds, the two lots on the east side of High »Street and between the Capitol and the public square. It was ascertained that a row of houses erect¬ ed on the east side of High Street of ordinary height, would most materially obstruct the view of the Capitol and grounds, be- 54 sides subject them to other inconveniences from too close proximity to a crowded population. A committee was appointed, who concluded a negotiation with the owners for the conditional purchase of those two lots at a cost of $8,500 with interest from date, subject to the ratification of the General Assembly on or before the 1st of January next. It is proper to say that the gentlemen from whom this purchase was made, Messrs. F. B. Fogg and David Craighead of Nashville and Jesse Blackfau of New York, acted with praiseworthy liberal¬ ity in this transaction, as it is known that by subviding these lots, a higher price could have been obtained from individuals. The title papers for this ground are already executed and in the hands of the commissioners to be delivered to the State on the ratification of the contract. The commissioners cannot too strongly express their individual conviction of the importance of this purchase, and would respect¬ fully suggest that the grounds be examined by the General Assem¬ bly, ora committee appointed for the purpose. It is probably expected of the board to make some suggestions as to the mode of progressing with the work,, and thé amount of means necessary to carry it on. A building of that magnitude should progress at such a rate on¬ ly as will afford the materials the necessary lime to settle and con¬ solidate, but beyond this requirement sound economy forbids us to go, for the reason that the work already executed will be injured more or less by exposure to the weather, besides the additional amount of salary paid for superintendence and care of the building if the work is necessarily prolonged. Under these circumstances it is fortunate that the State has under its control a band of opera¬ tives, by means of whose labor for the next few years, with mod¬ erate appropriations of money, the work may he carried on with all desirable rapidity—we mean the convicts Lu the Penitentiary. In confirmation of our views more at large on this subject, we beg leave to refer to the very able letter of Dr. J. S. Young, Secretary of State, and ex-officjo Inspector of the Penitentiary, herewith sub¬ mitted, marked B, as part of this report. While on this subject it is proper to say, that by this gentleman and his co-Inspector, and the agent of the Prison, every facility has been afforded the commissioners for carrying on the work and for making the Prison an important auxiliary in its progress, while our intercourse with these officers has been of the most harmonious and satisfactory kind. Of the sum of $10,000 appropriated by the last General Assem¬ bly, $8,000 have been paid over to- the .commissioners—of this lat¬ ter, the sum of $6,600- has been expended, leaving on hand in the Bank of Tennessee m the credit of the commissioners, the sum of $1,400. , The accounts and vouchers for this expenditure are ready for the inspection of the General Assembly, or any committee that may he appointed, as are also, the minutes of the proceedings of the 55 board, and all contracts, correspondence and all other papers relat¬ ing to the subject matter. JNO. M. BASS, Ch'm. ~ SAM'L. D. MORGAN MORGAN W. BROWN J. T. ELLISTON ALLEN A. HALL JAMES WOODS, Nashville, October 10th, 1845. A To the Commissioners for the erection of a Building for the State Capitol at Nashville, Tennessee. Gentlemen:—I have the honor to submit to you a design for a Building for the State Capitol at this City, consisting of plans and a perspective elevation, which are drawn in conformity with the following specification: In plan it is to have a crypt or cellar and two stories.—The base¬ ment 17 feet in height, and the principal story 3S feet, containing a Representative chamber, Senate, Library, committee rooms and Halls of approach. The dimensions of the Hall of Representa¬ tives are 95 feet by 70 over the Galleries—of the Senate chamber, 70 by 35 feet. The Library opposite the Senate chamber, is of the same size and separated from it by a Hall 20 ft. in width, which in¬ tersects with a great central passage of 32 feet in width, and ex¬ tends to the chamber of Representatives. From these longitudi¬ nal and transverse Halls, you approach the Porticos on each front and flank of the Building, as well as from the floors of the Senate and House. * In the central Hall there are to be two great flights of Stairways for the public use, and four smaller stair cases on each side of the Hall, for the use of the members of the Senate and House. These stairs also lead from the basement story to the galleries, to the roof and cupola of the Building, as well as to two rooms of 32 feet square, immediately over the central Hall, and a room of 20 feet by 70 ft. over the longitudinal Hall, between the Senate chamber and the Library. On two of the sides of the Hall of Representatives, there are to be eight committee rooms, connected immediately on the same floor with the Hall. These are 16 feet square, and support the Galler¬ ies on the right and left of the body of the House. The Senate and Library have also appropriate retiring rooms on the sarfie floor of the principal story. In the basement story, the building is intersected by the same sized Halls as above described, running through from the centre of each front, which not only communicate with the stairways and Porticos, but with all the rooms of the story, which may be appro- 56 priated to the uses of the Governor, Supreme Court, Secretary of State, Treasurer, Librarian, Comptroller, Clerks, etc. Four of these rooms are 36 by 34 feet, and eight of them 36 by 16 feet. The whole dimensions of the building, including the Porticos, are 232 by 124 feet, surrounded with a flagged Terrace or platform 18 feet in width. The architecture of the building consists of a Doric basement, four Ionic Porticos, two of eight and two of six columns four feet in diameter, surmounted by a Corinthian Tower in the centre of the roof, the whole height of which is to be 170 feet from the sum¬ mit of the site. The Porticos are after the order of the Erectheum, and the tower from the choragic monument of Lysicrates at Athens. The whole structure to be composed of the best cut and chissel- ed compact Limestone, from the neighborhood of Nashville and Marble from East Tennessee. The various chambers, halls and porticos to be arched throughout. The columns of the Hall of Rep¬ resentatives and Senate Chamber to be variegated marble, as well as all the decorative parts of the interior of the building.—-The rafters of the roof to be constructed of cast and wrought Iron and covered with sheet copper. The window frames and sash of cast Iron, and the floors of all the Halls, Lobbies and Porticos to be flagged with stone or otherwise, so as to be thoroughly fire proof in all of its various compartments. Furnaces to be constructed in the crypt to generate and diffuse warm air in the Halls and Chambers, as well as fire places in all the rooms, for the purpose of burning wood or coal and ventilating the building. The whole estimate of the cost of the building as above describ¬ ed, and according to the prices of materials and labor in Nashville, is calculated at $340,000 if done by contract, but which amount may be reduced from $85,000 to $100,000 by the employment of Prison labor, leaving from $240,000 to $260,000, as the entire cost of the building, with the addition of 7£ per cent, for contingent ex¬ penses—Hoisting Machinery, Tools, etc. The cellar story or crypt, which is 10 feet in height, is to be ap¬ propriated to the purposes of an armory, and as a depository for fuel. The armory to be approached from an arched way, some dis-> tance from the northwest angle of the building. In conclusion I beg leave to refer you to the plans and drawings which have been made, and which accompany this specification, for the better understanding of the design. Respectfully submit¬ ted by . 1 Your obedient servant, WILLIAM STRICKLAND, Arch't. Nashville, May 20th, 1845. 57 B Nashville, September 10th, 1845. To Doct. Johnr S. Young, Secretary of State. Dear Sir:—Will you be kind enough to answer the two following interrogatories at your earliest convenience. 1st. From your knowledge of the State Prison, (having, as we know devoted.much attention to its operations for the last two years as one of its Inspectors) do you not think that the whole labor of it can be profitably devoted'to the work of constructing the State Capitol? 2nd. Are you not of opinion that the plan adopted by the last General Assembly, of applying the surplus labor only, to that ob¬ ject, as inefficient, and incapable of producing decided results? Very respectfully, Your obedient servants, ( JOHNM. BASS. Signed I S. D. MORGAN. ( J OSEPH T. ELLISTON. Committee. Nashville, September 15th, 1S45. To Jno. M. Bass, S. D. Morgan and J. T. Elliston, Esqrsi: Gentlemen—I have received your note dated the 10th inst. propounding to me the two following interrogatories: 1st. From your knowledge of the State Prison as an Inspector, do you not think that the whole labor of the Prison could be profit¬ ably directed to the work of constructing the Capital? 2d. Are you not of the opinion that the plan adopted by the last General Assembly, that of applying the surplus labor only, is in¬ efficient and incapable of producing decided results? To both of your interrogatories, I answer in the affirmative; and shall without further preliminary remarks, endeavor to elucidate the position I have assumed, by arguments founded upon facts, which my official connection with the Prison has placed within my reach; and in order to be more clearly understood, I will reduce the first subject of inquiry presented by you, to a detailed form, by proposing the following plan of operations, viz: That from and after the 1st day of Jan. or Feb. next, all the ex¬ isting operations in the Prison be suspended, and that from and after that time, the whole labor of it be directed to the work of pre¬ paring materials for the Capitol; and that from and after the same period, the victualing and clothing of convicts, together with the salaries of the officers, be assumed and paid directly out of the Treasury of the State, upon quarterly estimates to be furnished to the Comptroller by the Agent, and to be accounted for by him, in quarterly settlements with the Comptroller, which settlements shall 58 exhibit, by receipts and vouchers, the manner in which each dollar has been disbursed. In demonstrating what I conceive to be, the practicability of the plan proposed, I will rest nothing on an assumed stale of facts, which require for their support theoretical deductions, the correct¬ ness of which may be doubted or denied; but will base all my cal¬ culations upon data which cannot be controverted, and for which I may safely claim as much accuracy, as if they were intended to be presented under the sanctiou and responsibility of an official name The whole number of convicts, at present in the Prison is 190.— In my estimates I shall assume 180 as the average number. Of this number 45, or 25 percent, may be set down as infirm, diseas¬ ed, and superannuated, and therefore unfit for active labor, which would leave 135 as the number of picked and reliable men. The books and vouchers of the Prison show, that nine dollars is the amount required to clothe a convict for one year, and eighteen dollars and twenty-five cents, the amount required to victual a con¬ vict for the same time. The following exhibits the annual expenses of the Prison. » Clothing 180 convicts at $9 each, $1,620 Victualling " " 18 25 cts., 3,285 Salary of Physician and medicines, 700 Fuel and lights, 1,500 Officer's and guards' salaries, 5,872 Horses and hire of ^Drayman, 500 Contingent expenses, 300 Total, $13,777 The experience of the last four years proves that the above sum will cover the expenses of the Prison. Should the change I have contemplated, be made, Ï feel assured that it could be reduced to $13,000, which would make the amount to be placed by the Comp¬ troller, at the disposal of the Agent, at the commencement of each quarter, $3,250—nearly all of which would be reimbursed to the Treasury for the first three years, as I shall be able to show in the sequel. Taking former years as the guide iu making estimates the proba¬ ble value of manufactured articles and materials, which will be on hand on the first day of October next will be $24,000, exclu¬ sive of $3,550 in tools and shop furniture. I have not the means at hand, of ascertaining with entire accuracy, the probable amount of money and uncollected debts on solvent pèrâons, which will be on hand at the same period; hut it is within the range of safe calcu¬ lation to estimate them at an amount, which added to the $24,000, in manufactured articles and baterials, would make the assets of the Prisons $40,000, a sum nearly sufficient, as you will perceive, to reimburse to the Treasury, the amount annually required to meet the ordinary expenses of the Prison for the next three years, pro¬ vided there is no considerable increase in the number of convicts. The collection of the debts, and the sale of the manufactured ar- 59 líeles &c., could be confided lo ihe clerk of ihe Prison, under the direction and supervision of the Agent, and the funds arising from such collections and sales, could be paid into the Treasury by said clerk, at the end of each month or quarter; and when articles were exchanged for provisions and clothing for the convicts, the accounts thus created, could be adjusted by proper credits in the quarteriy settlements between the Agent and Comptroller. From the foregoing view of the statistics of the Prison, in adopt¬ ing the plan proposed the State would have nothing to risk, and in¬ deed, so far from the danger ofloss, it would in my view be a mea¬ sure of economy, from which compensating advantages might be expected. I have stated 135 as the number of picked and reliable men, tobe employed in the work of cutting stone for the Capitol; 10 of the number are good stone cutters, and more than 20, have had some experience in the business. The larger proportion of the work to be performed, is plain stone work, requiring in its execution, a small amount of skill. I am assured by the head of the stone department in the Prison, that fresh hands set at the business, will in the course of six months, become average workmen, in the execution of plain work. There may be some difference of opinion as to the daily or an¬ nual value of the labor of the l⣠men. I will fix the annual aggre¬ gate value of their labor at $33jl)00, being a shade under 75 cents per day each, for the 125 men who are not practised in the business of cutting stone, and $125 each per day for the 10 good workmen. Considering the Building Commissioners in the light of contractors or undertakers, and having the control of the 135 operatives men¬ tioned, after paying for their labor the amount specified above, the question arises, "how much profit would they make on the labor of each hand?" Under the best advice, 1 set down the aggregate pro¬ fit at $10,000 per year, being 24 cents per day for the labor of each man. Add $10,000 to $33,000, gives $43,000 as the aggregate an¬ nual amount of labor the State would derive from the Institution, out of which would have to be paid $13,000 for expenses, which would leave the nett profits $30,000 per annum in labor upon an important public work. If these calculations are vague and inde¬ finite, there is certainly no rule for estimating the value oflabor. It may be asked: , "If the Prison is capable of producing in la¬ bor upon the Capitol $30,000 annually, why have not large profits accrued from present pursuits?" The answer is plain, and the rea¬ son most obvious. If you direct the whole of its labor to preparing material for the Capitol, you create at once an active demand for its labor. The State becomes the purchaser of its products at ade¬ quate prices, and it would receive each day remunerating benefits and possess all the attributes of a successful enterprize, based upon a safe and profitable investment of capital. Its present system of operations comprises a variety of pursuits, trades and occupations. Could you secure to it in the exercise of each of them, the state of things alluded to above; that is create for 60 it an active market, which would insure daily cash sales of its pro¬ ducts, the consequence would be, that a large percent, upon its cap¬ ital would be realized, and it would become a highly fruitful source of revenue to the Stale. But let us glance at the real state of things as they have existed, and do exist, at present. Notwithstanding, the Prison has been ably, honestly, and intelligently managed by the gentlemen who have been charged with the immediate admin¬ istration of its affairs, and all its arrangements judiciously planned and ordered, and its pursuits and avocations conducted with spirit, energy and skill, it has made small profits. The reason of this is found in the fact, that the demand for the articles of its manufac¬ ture, has not corresponded with its ability to produce them, which has resulted in a heavy loss of interest upon its capital; added to which, has been a loss of interest, produced by vending its articles upon credit. It has no mart at which to vend its products except within its walls; its remoteness from the banks of the Cumberland River throws it out of the line of active commercial intercourse, which has forced it to engage in the most of the smaller trades, and to depend chiefly upon neighborhood patronage for support in com¬ petition with the mechanics in its vicinity, who make it the cause of much complaint, and its officers the subjects of undeserved cen¬ sure. They view ¡t as privileged labor, commanding and exer¬ cising capital and skill against skil^alone, and therefore, an unfair competitor. Being considered a grievance by so respectable a por¬ tion of our fellow-citizens, it comports with the spirit of wise legis¬ lation to redress it; provided that in doing feo, no principle of right Is violated and no legal obligation contravened. * That which has operated most against the Prison is the selection of its present location. Had it been placed upon the banks of the Cumberland River, contiguous to a wharf, it would have proved to be an enterprise, possessing in comparison, fourfold energies, and one, upon which a far different field for operation would have been opened. With the facility to use steam power to an unlimited ex¬ tent, it could have engaged in pursuits fully capable of eliciting and turning to account, its ample powers and resources. Its contact with the navigation and commerce of the River, would have caused its products to have found their way to the Southern market; it fa¬ cilities would have increased, whilst its expenses would have dimin¬ ished. Situated as it is at present, it has to derive a large portion of its fuel and materials from the river, upon which it has to pay transportation, and is forced to incur the additional expense of de¬ livering its manufactured articles at the city of Nashville. There is another consideration deserving great weight, to which I would barely advert, viz: that the Prison grounds do not afford the means for the adoption of successful measures for preserving the health of large bodies of men. There is not, and there can never be, a sewer constructed, through which the accumulating offensive matter of the Prison, can make its escape. All attempts at its construction would create a nuisance, against which legal remedies would be success¬ fully opposed. During the súmmer months, there is an inadequate 61 supply of water for the purposes of cleanliness; moreover, the wa¬ ter to be used for drink at that season, is highly impregnated with lime, so much so, as to be capable of disturbing the healthful oper¬ ations of the system, and producing disease. With the increase of population, we may expect an increase of crime, and can look for¬ ward to the day, not far distant, when the number of convicts will greatly exceed the present number. When that day arrives, I now venture the prediction, and claim for it almost prophetic certainty, that unless the evil is anticipated an amount of mortality will occur, from the causes I have mentioned above, which will have to be ar¬ rested by the benevolent interposition of the legislative arm. If the change I have proposed, be made, it will give sufficient time to wind up the concerns of the Prison, preparatory to ulterior action in re¬ gard to it, which would best consist in limiting the number of con¬ victs in the Prison, to a small number, and sending tbeiresidue to a Branch to be established in East Tennessee or the Western District. If to East Tennessee, it would afford the means of developing the wealth she possesses in her marble quarries; if to the Western Dis¬ trict, the advantages of the Southern trade would ensure success to the measure. Some may object to directing the whole labor of the Prison to a single pursuit, on the ground that moral influences would be lost, in not leaching convicts different trades. To such I would reply, that the work of preparing materials for the Capitol, will be temporary; those already in the Prison would not lose their trades, whilst those who would enter the Prison during the progress of the work, could not learn a better than that of stone cutting. I am entirely sceptical on the subject of reforming convicts by teaching them mechanical trades—little or no good results from it. When the convict leaves the Prison, he lays down his ca-p, and with it his trade. He looks back upon both as the badges of bis disgrace, and the companions of his imprisonment; he aims to something else which he considers better than bis trade, or returns to there-com¬ mission of crime. The trade in most instances, as I believe, serves to better qualify therillian, without reforming the man. Those who would attempt the moral reformation of the felon must employ other means. They must bear in mind, that three fourths of those who are stained with crime can neither read nor write. The mind must be cultivated in order to produce those genial influences, which are calculated to remove vicious inclinations and base propensities, and give place to proper sensibilities and corrected feelings, from which altered intentions and virtuous actions must spring. Whilst the convict is suffering punishment for his crime, it does , just as well to employ him at one thing as another. That which best subserves the interest of the State* whose laws he has violated, is, in my estimation, the most proper. In recurring to the plan I have proposed, there is one important consideration, which highly commends it, that it would give to the work of building the Capitol, a more systematic, economical and better organized plan of operations, than could be derived from any 62 other source. The work shops of the Prison would afford ample accommodation for the whole force, without the necessity of extend¬ ing the walls; the work would move steadily on; there would be no clashing interests and discordant views to reconcile; the architect would only have to hand to the agent his drafts, to be certain that they would be faithfully executed; concert of action would be es¬ tablished between the Architect and the Agent, and they would be¬ come valuable coadjutors in promoting the work. There is another consideration of paramount importance. . It is this, that in carrying out the details of the plan, no change in the present police regulations of the Prison would be necessary. The convicts could be worked within the walls of the Prison, just as they have been heretofore, which is the Only safe and proper me¬ thod. I am aware that the opinion is entertained by some, that it would be safe to carry the convicts in large bodies, beyond the limits of the Prison, lobe worked in open fields. Some knowledge of the temper and dispositions of the convicts in the Prison, has brought my mind to a far different conclusion. It would, in my estimation, be attended with great difficulty, and if continued any length of time, would most probably lead to disagreeble conse¬ quences. It would render necessary a system of discipline which would add rigor to the punishment of the convicts, for which no adequate reason or justifying cause could be urged; and being a measure wholly extrajudicial in its character; it could not be ex¬ pected that the Legislature would legalize It, or that public opinion would approve it. There is generally a very small number of con¬ victs that can be worked without the walls of the Prison, but with the mass, in order to secure subordination, you require the potency of the stonewall, and the bolts and bars of the cell at hand. These are found to be sufficient within the walls of the prison. To accom¬ plish the same ends beyond their limits, the right to use chains and firearms would have to be tolerated; two dangerous instruments, except when confided to cautious and responsible hands; and 1 think it would comport best with sound views of humanity, and a judicious dispensation of authority, not to adopt a system which could be so easily abused. If the convict can be best controlled within the walls of the Prison, it is certainly the place where his labor can be rendered the most available. The labor required at and around the building, must be derived from some other source, It might be obtained in a very economi¬ cal manner, by authorizing the purchase of fifteen or twenty likely, active, and intelligent negro men, to be quartered on the public grounds, under the general direction of the Building Commission¬ ers, and the immediate control of some individual selected by them. With them might be purchased horses, carts, and other necessary appliances. During five years, they would be worth to the State inore than fifty per cent, upon their cost, and could, at the end of that time, be passed into the hands of kind masters, at, or near, rates corresponding with their original cost. I believe it is admitted that in the South it does not succeed well to mix white 63 and black labor for menial purposes, and that of the two, the black is the best. In closing the first subject of enquiry presented by you, I will urge the very strongest argument in favor of the adoption of the plan—viz; that it would prevent the necessity of large appropria¬ tions from the Treasury, to carry on the work. In answering the second subject of enquiry contained in your note, I will endeavor to show that the plan adopted by the last ses¬ sion of the General Assembly, that of applying the surplus labor ' only, is not only inefficient, but full of difficulty and embarrassment to those charged with its execution. To decide what the surplus labor of the Prison is, is a problem wholly incapable of solution, and all attempts at its solution are calculated to produce differences of opinion, arid discordant views unfavorable to the advancement of the public service. If the same plan is continued by the next session of the General Assembly, the Prison will be found to be but a feeble auxiliary iu the work of constructing the Capitol; whilst under the arrangement of things I have proposed, it would become an active, energetic and efficient agent, because it would possess the organization, power, physical force and skill, capable of pro¬ ducing results proportioned to the^magnitude of the enterprize in which it would be embarked. The idea of the Prison becoming a charge on the Treasury, ha3 been the subject of peculiar dread with some persons. I am at a loss to understand the philosophy, or to perceive the force of the reasoning, upon which this fear is founded. In my humble judg¬ ment, the Institution should never have separated from the Trea¬ sury. So far from it, its accounts from the first, should have been settled and adjusted at the desk of the Comptroller. It should have been considered as a means of profit or loss to the State in a reven¬ ue point of view. If it made profit, that profit would have passed as revenue into the Treasury—if it failed to meet its current ex- Eenses, the Treasury would of course be bound to make up the de- cit. The further you remove the Institution from the Treasury, in the same degree you place it beyond the reach of strict accounta¬ bility, and impose upon the officer at its head unnecessary responsi¬ bility. and subject hun to imputations for mal-managemenl, without affording him the means of vindicating himself, except through legislative committees which will not take the time, or have not the inclination to examine a mass of books and papers as voluminous as those of an extensive mercantile establishment. If the Prison were brought strictly within the fiscal operations of the State, and its accounts settled and adjusted at short periods, with the proper revenue officer, the state of its finances could, at all times, be well understood, and be by that officer communicated to the General Assembly, in a form as tangible and correct* as the accurate calculation of figures could make them. If the change I have contemplated be adopted, the affairs of the Institution would be placed precisely upon that basis, one of cer¬ tainly and unerring calculation. The Prison would cease to be 64 that sort of riddle it Í3 viewed to be by many who end all their cal¬ culations as toits resources, in speculations as to whether or not, it may become a charge upon the Treasury. Apply, (says the high¬ est authority) the surplus labor of the Prison to the work of con¬ structing the Capitol, but be cautious that you do not thereby make it acharge upon the Treasury. I am unable to discover any reason or argument to support a line of policy so undefined. It certainly cannot lead to determinate action, and its results must be uncer¬ tain. If the Prison can be made an active agent in carrying on an important public work, why not make it so? Instead of being con¬ sidered a source of danger to the Treasury, it would become a safe¬ guard. The work of preparing material for the Capitol would probably occupy two or three years. As the time would draw to a close, if it were desired, the Prison could, by an easy movement, fall back upon its former pursuits; or what would be better, the chang¬ es I have suggested in regard to it, could be made greatly to its ad¬ vantage, and without the danger of loss. I have witnessed with pleasure your personal efforts aided by those of the able and intelligent Architect selected by your Board, in carrying forward the work of building the State Capitol, and de¬ siring for you, success in the work so auspiciously commenced. I am, very sincerely and respectfully Your friend and servant, JNO. S. YOUNG, Secretary of State. P. S. I have not alluded to the fact, that amongst the one hundred and thirty-five men mentioned, there are a number of good black¬ smiths, who could keep in order the tools, and do a great deal of the work in iron, which will be required on the Capitol. This would give their labor an increased value over the estimate I have fixed it at. I will further add, that if the change I have suggested be made in the operations of the Prison, the materials on hand -will consist chiefly of the timber used in manufacturing articles of wood, and the largest amount, that used for wagons, which could be sold ata profit, or it might be kept on hand, until the prison would re¬ sume operations, after it had performed the work for the Capitol, as it would improve by keeping; and if during the progress of the work on the Capitol, there should be found to be any surplus labor, it could be employed in the manufacture of wagons, that being the most profitable pursuit. By the forty-five infirm men, could be performed all the menial duties of the Prison, cooking, washing, and the duties of what are termed shop tenders; and in addition, they could keep going the carding of wool. They would be found to be worth what it would take to clothe and feed them. • J.S. Y.