The Montgomery advertiser., 1904-12-24
CUNNINGHAM
 AND THE BONDS Governor Returns From
 Trip to New York. HE DISCUSSES FINANCES Refunding of State Debt Still an Open Question. Chief Executive Expresses Gratifica- ton that states Credit Ranks % High in The Great Money Center.
HE DISCUSSES FINANCES


 ham returned early yesterday morning from New York city. pleased and grati- fled with the success of his mission which was Investigating and planning the refunding of the bonded debt of the State of Alabama.
 | The debt was not refunded on this trip. In fact 1t was not intended that the debt should be refunded at this time Nor are there any negotiations pending at this time for the refunding | of the debt. The question of retiring the old State bonds and providing for new State bonds will be formally taken up in the near future. This was officially announced yesterday by Governor Gun ningham.
 The Governors scouting trip to the financial metropolis revealed to him the great strength of the credit of the State of Alabama. He was much grat- | flied to learn of the high esteem in which the pledged word of the State of Alabama Is held.
 The refunding of the bonds for $9,- 1851, 800, is still an open question, a question for the future. The question is only one Of terms. This much is known without the Governor saying SO. Can Alabama's bonds be refunded at a lower rate of interest than is now being paid on them? It Is said with authority that the bonds can be retired with bonds bearing the same rate of interest, but that the Governor and other State officials are desirous l of having the refunding bonds so ar i ranged that the State will have to | pay less interest than 1t has hereto fore been doing. The officials think that In view of the splendid credit of | the State and of the fact that money is cheaper than 1t has been in the past that the bond buyers should be con- tent to take bonds at a less rate of ] interest than the old bonds are pay ing.
 There still remains, however, a year and half for the refundins of the bonds. The most of the bonds, in fact nearly all of them. fall due July 1. 1906 For this reason the Governor is not hurrying the work at this time.
 Statement of Governor. | When questioned as to the result of his trip to New York the Governor yesterday gave out the following state- ment:
 My visit to New York was in refer ence to the public debt. My purpose was to ascertain at first hand the conditions as nearly as possible as q guide as to what should be done, the plan to be adopted, etc, in the fund ing of the debt I gained a great deal of valuable information. not the least of which is that the credit of Alabama stands among the first of the States, and about that there seems to be no question, whatever. have made no definite arrangements. nor are there pending any tentative propo- sitions. The matter will be taken up formally in the near future. Further than this I do not care to discuss 1t at this time."
 The Governor spent six days in New York. He went there thoroughly vers- ed In the pending bond business, in the various plans that had been pro- posed for the refunding of the indebt- l edness of the State of Alabama. He met number of the leading financiers | of New York and discussed the States debt and its refunding The Governor was one of the guests at a banquet of bankers in the early part of the week at the Waldorf-Astoria Hotel
 The visit was a general survey of the situation, a survey which pleased the Governor. His statement carries the information that the matter will be finally and formally taken up at some time in the near future.
 The main thing Is these negotiations | will be the fact that the State of Ala bama is paying each year interest on $9,357.000 worth of bonds, interest that | State officials are figuring on shaving down this interest
 Report on the Bonds.
 The full and complete bond state ment contained in the last annual re- port of Treasure J. Craig Smith is as | follows
 Class (Consols)-Issued July 1st, | 1876. under act approved February 23d. | 1876; due July 1st, 1906; interest paya- | Ia 1at 1af July in New York; bearing interest: | 1876 to 1881, years per cent; 1881 to | 1886 years, per cent; 1888 to 1896 10 years, per cent; 1896 to 1906, 10 years, per cent; 1000 Nos. 1, to 4973 No. 4975. Nos. 4977 to 6,0o0. $5, ,99S,0 900; $500 Nos. 6OO1 to 7254 and Nos 726s to 7560, $779.500; $100 Nos. 8351 to 9171, $S2,10O; total, $6,s59. 500; annual inter- est, S342,9s0; bonds barred by statute | of limitations, $140,400.
 Bonds Nos. 4974 and 497s Of $1 900 | each were taken up and cancelled by the Governor and s1oo bonds to their value issued in lieu of them.
 Bond No. 7255 for $500 was lost in transit to John B. Manning, New York, No. 743s was issued to him under act approved February IS. 1891.
 Class B.-In substitution for bonds l issued for State endorsement for rail- roads $4.000 per mile, issued July 1st, 1876. due July 1st. 1906. under act ap- proved February 2S. 1878. bearing in- terest at per cent, payable semi-an- nually. January 1st. and July 1st, in New York. $1.00O Nos. to 57s total, $5Ts.0o0; annual interest. $2S.s00: bonds barred by statute of limitation, S1s.0o0. Class C.-Un exchange for endorsed bonds of Alabama and Chattanooga Railroad), issued under act approved February 23, 1873, and dated January