The Montgomery advertiser., 1906-12-16

1t was liable for the respective com panies Notwithstanding the fact that the A and C. Road in Alabama was only 250 miles fin length bonds for the whole distance from Chattanooga to Meridian were endorsed by the State of Alabama Not only this but the bonds were all signed by the State of Alabama when the road lacked over 100 miles of completion, although the payments were to be upon sections of five miles of completed road.
 When Governor Lindsay was declar- ed elected in 1870, the Republican Gov ernor, Hon. W. IT. Smith. declined for several days to vacate and give pos session of the Executive Office. There was great deal of excitment, and 1t looked at one time as if there might be dual government Governor Smith, however. yielded obedience to judicial proceedings and turned the Executive Office over to his legally elected suc- cessor.
 It was soon developed that the new Democratic administration had a knot ty problem to solve. The President of the Alabama and Chattanooga Rail- road. on December 24th. TO, notified the Governor by telegram that he was making arrangements to meet the in- terest due from that company upon it's bonds, payable January list. Not withstanding this assurance, the com pany defaulted. The situation was grave. The General Assembly had ad- journed for the Christmas holidays When 1t re-convened, fin January Governor Lindsay sent in message giving the details of the condition of affairs and submitting the whole mat ter to the consideration of the Legisla- tive, Department. An act was passed and approved March s. 1871, by which the Governor was authorized and reauir- ed to inquire into the facts. and em- powering him, In the event of the pay ment by him of any interest due, to proceed under the statues providing a summary remedy. to recover the amount so paid for the company. The result was that Governor Lindsay took possession of the road and equipments, and, through agents appointed by him, operated 1t during part of 1871 and 1872. Judicial proceedings were insti- tuted by different parties fin interest in both State and Federal Courts. The litigation in connection with this mat ter, both on the part of the State and other parties, furnishes one of the most interesting chapters in the legal his- tory of the State. Tn the legislature there was strong opposition, led by strong mon, to the bill authorizing the Governor to ake steps leading to seiz- ure of the Alabama and Chattanooga EtalAToad. Iney neiu tnHt the CtdIe was in no manner liable on the ground that the whole business, from begin ming to end, was saturated with fraud. There was an investigation by the Legislature, and the men, who figured in procuring the various acts under which the bonds were issued, were car ried as witnesses before the committee. The record made was not one of which any man could be proud.
 A.N-v gank
 tative men of the virtuous and intelli- gent classes in Alabama had come into control of the Executive and Legisla- lative Departments of Government at this critical Juncture. The straight debt of the State had increased to Sl5,- s97,563, while the bonds of railroads which had been endorsed by the State had reached the appalling sum of s14,- 641,000. The business of the country was in & depressed condition, ebnse- | quently those handling the railroads l were unable to get money, even with the credit of the State behind them, to | push the construction of their road to completion. wisely, the general as- l sembly passed an act to lidufdate and | adjust all claims against the State of Alabana arising from bonds Issued or endorsed in the name of the State," !" which was approved by Governor Hous-
 
 vided for the appointment of a com mission to carry it into execution. to 1 be appointed by the Governor. which official was made by the act ex, of ficio President of the Commission. The Governor immediately appointed Gen. eral Levi W. Lawler and Colonel T. B. Bethea,. members of the commission The commissioners labored indus dustrlously for more than year be- fore they could reach an agreement with the creditors of the State, whose terms. inl their opinion, offered fair adjustment of compromise The Gener- al Assembly,. acting upon the recom- mendations of the commission. passed an act, which was approved February 23,. 1876. under which our debt has been finally adjusted by which the ag- gregate of our bonded debt is now about $9.000,00O. It was possible for additional bOnds amounting to s1s5, 4O0.. to have been exchanged under the plan adopt cd, but under the operation of an act of the General Assembly, approved February 1s,. 1895. all bonds not pre- scented for exchange by July l, 1896, were barred. This sum has been bar- red by reason pe failure to present the bonds within the time fixed by the act
 Here we have the two bond-creating eras--from 1892 to '37., and from 1868