National Republican. (Washington City (D.C.)) 1872-1888, 1882-04-01
ALABAMA'S DEBT.
REPUBLICAN AND BOURBON RULE.

70 the Editor OF THE REpuPIcAS.
Congressman William &. Oates, OF Alabama in
your paper Of March II, attempts 10 give thedebt
VI that State. He also endcavors to defend the
Bourbon administrations, and declares The kepub.
lcans TO have been guilty ofincreosing the deotoi
that State TO nm enormous amount, IN the hIsl
place, he fails to give the fact that the Patton
Dourbon) Iepislaturcin 1867 passed law indots-
Ing the bonds Of all railroads built to the amount
pfSl2OOO per mile and SEQ per lnc0l foot oiwooden
bridges and siOo per foot Of iron bridges. Again.
be forgcts to state that before the Republic
can party came into power, in July, 1865, there
had been issued 100000 Of so.called Patton State
certificates, receivable for all dues to the State
Instead Of the debt being s7OOOuOO, as given by
him, Il was s52TOAO0 in bonds, sl777525 due to
the school fund Of the State, and s3O9157 Of Patton
certificates and warrants outstanding, besides
temporary loan Of S437 500. making total debt Of
ts7a5S2, upon which the state was paying an an.
nual interest Of nearly 100000 when, as he says,
the State Of Alabama, under the reconstruction
laws and policy of your party, passed into thg
hands OF the cnrpctbaggcrs and Ignorant negroes
AFTER THE REruBICANs ASSUMED toSTEoi
IN 1863 the Governor sued 100000 In bonds, with
which to take up the Patton money, and large
amount OF bonds that had been hyuUthCcatcd IN
New York by Governor Patton NJ 90 rer cent Of
meir face value. Thus H. IS seen that Alabama
bonds under Bourbon rule brought only iiity cents
ON the dollar, Governor Patton in september
lSbS, appeared before inc EtHNDllttn lcsln4Hlhlc
with MI. stanton ana other Eastern capitalists,
and secured the passage of a law which changed
the Endorsement on rmlroAd bonds and bridge,
rs above stated to $1,000 per mile, includ-
Ing bridge, thereby preventing the building
of numerous bridges to secure that Endorsement,
and consequently making the roads Letter and
safer for the public. Capital then began to flow
into the State with which to develop her mex.
haustiOlc miucral resources. This gave an i'm.
pctus TO rniltCud building aud TO all business.
This law declared that no bonds 50 issued should
be sold Tor less lhnn ninety cents ON the dollar,
md secured to the state first mortgage lienunon
The railroads nnd ul telegraph INES, mgch!ne
thops, Station houses, aud rolling stock. In the
case Of the Alabama and Chattanooga Railroad II
secured lien upon the road both in aud out OF
the state.
AZ ACT WAS PASSED
February H. 1870, which declared that If the Gov.
Cruurwas not satisfied the state was amply secured
by the Htst mortgage the railroads must give IL
second mortgage, II further declared II he was
not satisfied the bonds were being used fOG the cE-
tension Of tie read lie could refuse 10 nG"rsc any
more. THIS lUw also made The CuHpunic- deposit
The semi annual interest iil,Cu day before IL was
due or The Governor should appoint u receiver
The state was entitled to TWO directors in
each company The Governor should refuse to in.
purchase whatever material could be supplied by
the citizens ul Alabama i'll the construction Of such
road. II further declared that sinking fund
should be set aside by the roads Of L. >, 3, and 1
per cent. annually for ten, nNgen, twenty, ana
twenty Eve years respectively, 10 be used in reiir
age cost per mile of building railroads IN this
county is $4,000 Inc State was surely sGiC in IN.
uOslng the payment OF interest on uuiy StpvNJ pCI
so maH DID THE CREDIT or ALABAMA
stand under Republican rule from lsGS to 1870
thut her bonds, which had been hypothccaIed by
Governor Patton Ut iity cents on the dollar, were
sold in 1869 and 1870 at not less than par and ut y
premium, d sale having been made los Souter 4
Co, ofNew York, 10 Emile Changer ~ Co., of Paris,
ofs2OnO0OJ at ninety cents ing0ld, which, with
the premium then ON gold, oqualrd LII, q higher
price than Alabama bonds had ever cached. This
condition existed until Lindsey, the Bourbon GOV.
etnor, who had been cuuniedinby maud, seized; IN
1871, the Alabama and Chattanooga Railroad, be.
cause the company which mtd been compelled
by law 10 compete the 800 miles OF road by March
j. 1871, We're unable 10 meet the interest then due
on the bonds. All the company asked was that
the Governor would protect them in the interest
until July, the road having just commenced opera
ernor refused to do. The Bourbons had been out
of power two short years, and the opportunity was
too great to give fat places to Democratic poiu.
clans.
THE GOVERNORS PRIVATE SECRETARY.
was made receiver ana practical railroad men
dismissed and politicians put In their places.
During that year Governor Lindsey made Il tenn.
pOraTy loan Of $4,000 with which forum the road.
law was passed December 10, ISL, to issue
100000 of bonds to pay expenses of running the
road. The State held POSSESSION Of the roud until
the Republicans assumed power ~ November,
zion Of the Court House and Capitol Legislatures
by act Of February %, 1873 to authorize the Gov
ernor to issue 81 10000 bonds with which to lqu-
date the temporary loans aud expenses Of running
this railroad during Liudsey's term. By act Of
March D a committee was appointed
10 AUDIT IHE CLAIMS
against the State on account Of this road, which
amounted to over slOOOOUO. The road was pur-
chased at bankrupt sale by Governor Lewis to
protect the state, from when time II was Ia con.
utant litigation Mr. oates snys the Republicans
held control ofthc STATE, with some slight exccp
ton, till DecemberI 1874" The slight exception
was two years Of Liudsey's rule, under which II
great railroad, running entirely across the state
was seized, wrecked, the company that built y
bankruptcd, the State having squandered
in running II with politicians oyersl 100000 giving
a shock TO all enterprises, turning the tide Of
blow to the high credit of the State, and causing
her bonds TO be hawked upon the markets. lie
wei says las aein.T resort under Lewis the
been drained 10 the bottom, the certificates known
HORSE SHOE MONEY,
although receivable for taxes, were at a discount
Of per cent" Us not necessary 70 use any NOR
Stiop Of tSe s'StS l." Inc IN Republicans resumed
control again, In 1872. He.admits that Eranger Il
90 1were compelled, as the writer positively
knows, against Mr.. Snagge's protest. received only
100000 of bonds bearing 2, ., 1, and per cent,
in lieu Of 100000 straight state bonds. on which
they had paid ID per cent. premium, and for
S4,72OOOO bonds, Endorsed by the state, which had
cost them above par. If paying this large amount
with 81 100000 Of bonds at this
REDUCED RATE or INTEREST,
and not having paid any interest for years on the
original bonds, isnotrepudiatiOn, In all conscience
what is 1t? The commissioners, Governor uous-
ton, Levi LGwler and I. b. Bethea, in making
this compromise, also through the Legislature,
forced the holders Of the old bonds issued before
all the outstanding bonds issued by Governors
Lindsey and Lewis of s2,5OO,OCO, and all tempo
rary loans OF several hundred thousand dollars,
and all outstanding liabilities, together with the
Endorsement of Sl3,9G6OOO Of railroad bonds then
due, TO take pro rata share Of S70OOO00 of bonds
issued 10 lQuidatc all the above indebtedness at n
reduced rate OF interest. This same Bourbon Leg
islature passed n law allowing counties to COM
promise (repudiate) therdebts, of which actmany
counties were not slow TO take advantage. II also
reduced the rate Of interest on
THE SCHOOL TRUST FUND
IN A nj naR n n I'M tlttg
repudiatng annually Slll,lOO OF interest due u
sacred trust for school purposes given by the
United States from the safe Of public lands and
surplus revenues, which had been squandered in
establishing state bank, with branches tarmed
out in different sections, for the benefit of Demo.
came liable for the amount, and thus a benehcent
gift of the Government, instead OF being
benefit TO the State, has beea ever
since tax upon the people to pay
Riggs, Democratic comptroller, IN 1851, in speak
ing of this fund.- says: Perhaps of all trust funds
none has been SO greatly mismanaged as the
direct debt to have been Sl47lS,l7S In 1874, when
the Democrats resumed control OF the State. This
cannot be correct for when the Republicans lost
control of the State, In 1870 Il was S. 7gi6s2 which
tncuded all outstanding liabilities, Adding TO this
the additional 100000 Lindsey bonds and the
UbOOOOO Lewis bonds would make II 81 ,2gi,5S2
THE ISCREAsE or tgJOO,OO0
having been caused by the seizure of the Ala.
bamG and Chattanooga Railroad by Lindsey, the
Democratic Governor He states the present debt
which in 1880 amounted 10 81 528 90, or a total
debt of ll,6A752 being an increase over the
total debt when the Republicans turned
the state over 10 the Democrats in ls7i
Mr.. Oates charge that the Republicans
caused tho enormous debt Of the State is lallu.
eious. None Of the railroads had deaued In
their interest on bonds until Governor Lindsey
seized the Alabama and CHATTANOOGA EuiiTUad