The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1912-11-11
TEN YEARS OF ALABAMA
No. 1.-THE Alabama and Chattanooga Railroad ICON
eudnd1
1865-1874

Shelby. Rufus K. Boyd Of Marshall. Will
liam c. Oates of Henry, Nat Strauss of
Mobile and John A. Steele of Lauder
dale.
The committee confirmed the message
of Governor Lindsay, touching the SLOW
emily manner in which tho records of the
state had been kept by Governor Smith.
Among the several examples was the
handling of the personal security bond
| executed by the railroad company when
the 100000 straight bonds were deliv-
cred to It, A condition of the loan was
that the road was to be finished, ready
for traffice along the whole line, on a
day certain. In order to attain the COM
pletion by the date designated the loan
was made Governor Smith had accepted
the bond and had handed it to state
Treasurer Bingham, in a careless way, to
be kept by him "as a private paper until
called for. The makers We're not respon-
sible, as developed later. Bingham put
the document in his pocket and carried
1t around with him for months. Gov
ernor Lindsay heard of the extraordl-
nary depository of state financial rec
ords, called for the bond and 1t was re-
luetantiy turned over to } i'm.
The 100000 bond loan was made by
Smith all In lump. while he knew the
law contemplated the application to be
piecemeal( to assist the indorsed bonds In
completing the road by sections. He
knew there were 100 miles of road uncom-
pleted. A few days after Stanton re-
oeived the full issue they were sold in
New York, that is prior to March 26. 1870,
and Immediately hurried off to Europe.
The report of the house committee on
February 8, 1871, aroused the legisla-
ture to immediate action. An act was
approved February 25 requiring the gov
ernor to borrow the money II the -reas-
ury could not supply 1t, to pay the In
terest due on the preceding January on
all the liabilities of the state on account
of the Alabama and Chattanooga rail-
road that were held on January 1, 1871,
by innocent and bona fide purchasers"
On March supplemental act was
passed. This latter procedure was intend
ed to give emphasis to the purpose of the
| enactment to recognize only bona flde
purchasers and holders of the state OBJ
legations and TO empower the state, oil
rather to command the governor, to pro-
coed against the railroad under the terms
| of the first mortgage held by the state.
! As soon as the legislature adjourned
Governor Lindsay fastened to New York
10 carry ont the purpose of the legisla-
ture, to pay the interest on state indorsed
bonds of the railroad. and on the straight
bonds" all that might be held by bona
flde purchasers. The action of the gov
ernor in the premises previously disar-
pointed the people and drove him from the
confidence of the democratic party.
In the spring of the same year Gen. John
7. Morgan was In attendance on the
United States district court at Montgom-
cry, Busted presiding
Stanton heard in Chattanooga of pro-
ceedings in bankruptcy begun in that
court against the Alabama and chetta-
nooga railroad company. Morgan received
from Stanton an unexpected telegram,
which read as follows: proceedings
have Leen commenced In bankruptcy in
Montgomery against the Alabama and
Chattanooga railroad. Fight 1t inch by
inch. See Governor Lindsay" Until
that day Morgan had been in no kind
of connection with Stanton or his af-
fairs.
Judge Busted adjudged the railroad
company a bankrupt, but the federal cir
cult court, Judge Wood presiding, reversed
him on a technicality. The bankrupt mat
ter was next taken before Judge Batch
ford in New York.
Whom Morgan receiyfi the telegram
from Stanton. in compliance with its ten
or, he called on Governor Lindsay. The
governor was unWell and lying on his
bed in his room at the Exchange hotel
The interview between these distinguished
gentlemen became an interesting feature
of state politics. His private secretary
Col. John G.. Gindrat, was present. Nor
gan reeited to the governor as he lay on
his bed the circumstances and conditions
OF lis retainer by Stanton. The governor
remarked; II am a Stanton man." Nor
gan replied Il am his lawyer" The
governor named terms on which he would
take the road for the state. Morgan die
claimed all authority to negotiate. but he
would advise Stanton to surrender the
property to the state. The governor said:
IF Stanton will surrender the road to
you, | will appoint him receiver" To this
the lawyer replied that he would not
undertake TO advise on the subject, but
lie would repeat the governors words to
his client.
Morgan & Rice, now associated counsel
in the case, repaired TO the governors
room. They read to him their joint tele-
gram to Stanton advising him TO come TO
Montgomery without delay and accept the
governors offer, to Appoint him receiver
when the entire road should be turned
over to the state.
The governor had risen from his bed
and seated himself, but when the joint
telegram was read to him he returned
to bis recumt ent position and explained
that he could not appoint Stanton alone
as receiver, but would so appoint him in
association with another citizen. The
lawyers reminded him that the law limited
the executive appointment to one receiver
only in the case.
The road was put in bankruptcy a few
weeks later. that is, on June 8, 1871, and
Morgan & Rice went before the federal
circuit court, Judge Wood presiding, at
Atlenta, TO attempt to have the decree
modified. In way of preparation, they
went to Chattanooga TO discuss the mat