The Montgomery advertiser., 1906-12-16

to 1870, and both threatening the state with ruin. Tn spite of the extraordls nary amount for which the State waS at one time liable for railroad bonds,. the liability after the adjustment made by Governor Houston and Commiesion- CT Lawler and Bethea, was less than s2, 900. 900. The taxation derived from the counties which have been opened up by these lines of railroad amount to far more than the annual interest.
 Most of the roads were sold under deerees of courts and passed Into hands of their own projectors or holders ok bonds. If there was any great amount of loss. it fell largely unon them, ana not upon the State. Happily for Ala bama. the adjustment relieved her peer pie of lead of debt which,, if 1t had remained upon them, would have been unbearable. If the only complaint the State could lodge against the Carpets bag Legislature was the one of debt created and left for the State to pay, we could afford to let 1t pass withouS serious consideration. An era of cor ruption.. however began with the oue ening of that Legislature in 1888. until the people drove them out of the House of Representatives in 1870, unheard of before in this State, and 1t is to be hop- ed will not be repeated as long as tinas shall last.
 in a report to the Governor. Janus ary 24th. the commissioners say: "Ths State aid system was inopportunely inaugurated. It would have been ok doubtful propriety when the State was rich and prosperous and it was certain- ly injudicious as experience has dem. onstrated after the State was reduced to poverty. Sagscious capitalists must have foreseen that a State in which tha aI... sNF he nf fhn FdnF1lQ had been reduced from fully S725r0O0, 0o9 to barely S180. 0.00o,000 (this was the val nation at the time the report was wFifs ten( and which had to borrow money annually to pay interest on it's thef existing debt, would not be able to prd4 tect its endorsements for railroad eom- panies. and the purchasers of such bonds must. as sensible and prudent men, have relied on the ability of the principal and not the surety for pay% ment." It was on this principle thak the commissioners acted for the onIy liability against the State that waA perpetuated was for direct State bond4 Bonds were issued to the extent of $1s 900 900 in lieu of s2O00,00O to the A
 and C. Road. In connection with this securities and liens held by the Stats were released which made the s1,O0N4~ 900 fair and equitable adjustment. Th4 s4. .000 per mile straight State Bonds were also adjusted by substitution OF others upon a satisfactory basis te bond holders and the state. Again if reference to State aid,. the commission4 CTS say: 'The limitations restrictiont and requirements contained in the stats law were intended to protect, and E they had been faithfully enforceds would have protected the State againsE imposition and fraud. But onr invests cations satisfy us that the letter and spirit of the law which enjoined tho observance of these requirements an~ terior to endorsements, were violated fin many instances and in various ways to the detriment of the State as well aF the bondhoIders. and which in the judgment of many good men, absolvea the State from all legal or moral obifn
 gation growing out of such endorses ment." Whether or not State aid
 would have ever been safe. it is now $
 useless question:. so far as Alabama is | concerned The experience of the State and many of the towns and counties under the provisions of the State aid
 law while they were in operation, cres ated such feeling of antipathy to that | policy. that it was strictly forbidden l in the Constitution of 1875, and the I same restriction is incorporated in the on which went into effect on Thanks l giving Day. November 18th. 1901. l Our experience was a dangerous one and might have been ruinous but for | the fortunate train of circumstances which led to an adjustment by which so slight an Increase was made to our States debt The intent of the men | who created this volume of direct ana ! possible contingent debt should cut no | figure so far as the State and it's inter- ests are concerned. We have the pail 1 pablo fact that under the State aid laws. a railroad system was built up | which has been of incalculable benefit l to Alabama. The great road extending | from the Tennessee linP through Blrmk | ingham, Montgomery and Mobile, was made a possibility and actuality many | years before it could have been c0ns pieted under altogether private auspis ces. The great line across the State from northeast to southwest, has been | a blessing to the State far beyond the amount of the s1,o00. 900 which ultis mately 1t cost the State.
 With railroad property valuations which realize for the State Treasury nearly one-fifth of the total amount that reaches it's vaultsr we must realF | ize the benefit of the railroad system l in that regard. to say nothing of the untold advantages which are the propr erty in common of all the people (