The Montgomery advertiser., 1904-04-07

quired sufficient title to the bonds 1t pur- chased to authorize 1t to bring suit in equity for the purpose of enforcing the lien upon the railroad property. created by the act of the Legislature of North Carolina, and took jurisdiction of the case. ~
 The judgment of the Court has not been made public, consequently exactly what process will be necessary to enforce that Judgment Is not known.
 Whatever it may be. it is safe to say. the State of Alabama has no interest in 1t. notwithstanding some of the great newspapers have placarded this State as one having repudiated its bonds. Happi- ly, when Alabama passed from under the rule of the reconstructionists and her people came again into their own. the Governor of Alabama, outlining the con- dition of affairs and voicing the senti- ment of her people. said in his inaugural address: Alabama is embarrassed-her indebtedness is great, and her people are impoverished. We must restore the cred it of the State to its former high and honorable position--preserve inviolate her good faith, and at the same time pro- tect her people against excessive. unjust and improper taxation"
 The Governor said 1t was not possible to effect this laudable purpose without already accrued upon the debts of the State or by a fair and just compromise of the whole matter. It was in this spir- 1t that the act of December II, 1874, au- thorizing the appointment of three Com mssioners to ascertain, adjust and lioui. date all claims agaibst the State arising out of the issue or endorsement of bonds by the State. was passed. Under this law Commissioners were appointed, and after a full, free and frank conference with the creditors of the State an ami cable and satisfactory adjustment and settlement was finally made. The indebt- edness of the State, direct and contin- sioners to be s30,0S7.563 which was ad- justed and liquidated for (approximate- ly) ssi52,Sss
 All the outstanding bonds which were included in this settlement have been re- turned to the State and cancelled.
 Among the claims referred to the Com- missioners for settlement were endorsed bonds for certain railroads, which 1t is not necessary to name, amounting to s. 405, and direct bonds issued to the Montgomery and Eufaula Railroad amounting to $9O0.OOO. All of these bonds 1t Is the s3Oo,OOO direct bonds issued to the Montgomery and Eufaula road. The Commissioners did not recognize the va- lidity of any of these bonds. Besides, the Commissioners found that there was lit- igation pending in the courts of this State and Tennessee affecting the liability of the State upon the endorsed bonds. In this litigation the bondholders were en- deavoring to enforce the mortgages exe- cuted in their favor, which might deprive the State of the security 1t had provided to protect itself against loss, without which the bonds never would have been endorsed by the State, thus, 1t was claim ed. also waiying any right they might have had to hold the State liable as en- dorser. Subsequently. these suits result ed in an adjustment of the entire indebt- edness in accordance with law. There fore. unless it is the $3O).0OO direct bonds issued to the Montgomery and Eufaula road the validity of which has never been recognized by the State, there are no outstanding bonds of the State, either direct or endorsed, which can be classed as 'repudiated" bonds. Alabama's honor has never been tarnished by the semb- lance of an attempt at repudiation of any just claim against the State The credit of the State is as good as that of any other State and Alabama bonds are al- ways in demand by investors at good prices.