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IXDIAXA rXIYEESITT STUDIES 



$10,000 to get the location, but cost Elihu Bursam S10,000 as a 

 premium to get Bright to part with his 1,200 shares of stock. At 

 Muncie, the stock was taken by local subscribers. They had to 

 raise a fund of 86,000 to secure the location. For this fund each 

 subscriber agreed to pay six per cent extra on his stock. 



Richmond was the scene of one of the most shameful deals. 

 An outsider had to open the books, and 1,775 shares out of the 

 2,000, capital stock, had to be allotted to Phinneas ]\L Kent of 

 New Albany (the home of Judge Smith and John S. Davis). How- 

 ever, Editor Kent had no notion of banking among the Quakers, 

 and immedaitely sold out to the old Bank, but the e\idence only 

 says "ior a premium." 



At Indianapolis, the controlling interest was subscribed for by 

 the great philanthropist, W. C. DePauw. He subscribed 1,010 

 shares, which he sold to the Touceys of the Lawrenceburg Bank, 

 and William R. McKeen of the Terre Haute Bank for $17,300, a 

 premium of thirty per cent. 



The lobbyists had subscribed for 22,782 shares. Before the 

 banks were organized they had sold more than 18,000 of these. 

 The balance of the 38,000 shares of capital stock was taken largely 

 by associates of the lobbyists in blocks of fifty and one hundred 

 shares. These latter subscriptions brought very small premiums 

 and many of the subscribers defaulted on their first payment, which 

 was only $2 per share. DePauw could sell his Indianapolis stock 

 at 130 because he had 1,010 out of 2,000 shares. Others could 

 not sell Indianapolis stock at all, except to DePauw, because he 

 had control and would sell no stock unless he sold all. The premium 

 on the large holdings aggregated $150,000. 



There were numerous "little folks" that had to be cared for. 

 A sub-commissioner usually got to subscribe 40 shares of stock 

 worth about $300 premium. The prices offered for the votes of 

 assembhinen ranged from 10 shares up to 40,^ and all these had 

 to be accommodated with subscriptions at the openings. WilHam 

 G. Coffin came up from Parke County to help his friend Judge 

 Roach, and subscribed fifty shares, just for fear the stock might 

 not all be taken. Ashbel P. Willard, governor elect, ran up from 

 his home in Xew Albany to visit the legislature and see how his 

 neighbor, Judge Smith, was prospering. He happened to meet 



' In offering shares as compensation, only permission to subscribe at the opening was implied. 

 Thus, when Editor Brown of the Sentinel was offered 500 shares, all that was meant was the right 

 to subscribe these. On these he would be required to paj- -?1,000 in cash. This amount could be 

 borrowed on the stock at the old Bank. If the subscriber got a fair premium — about 15 per cent — 

 his 500 shares would net him S3, 750, or S7.50 per share. On this basis the entire capital stock 

 brought a premium of $285,000. 



