The Birmingham age-herald., 1913-09-04

We have seen an act passed by the mil
itary legislature of 1868 to authorize the
authorities of the several counties at dis
cretion to call an election to determine
the question of subscription of the county
to the capital stock of any railroad pro-
jected through its territory or in con-
venient reach of its people.
1t mas been shown that this act which
applied not to counties only, bur to
towns. and their resources, an enormous
burden, in addition to the state debt, was
accumulated upon the taxpayers.
The public debt in its various domicils,
state, county and town governments, was
perhaps the most ingeniously contrived
of the outrage following In the wake OF
the conquest of the southern people. In
all its ramlfications it was the result of
the enfranchisement of great landless,
no property, illiterate mass of negroes
The county authorities, elected by ne
groes. would consent with the railroads
to call an election where the negro vote
was as three or six TO that of the tax
payers. The county authorities would
consent with the railroads to the amount
for which the county should be pladged
ny ihc IeSuIt OF the GlecIlOn IIus cOD-
trolled. The amount voted at the polls
as the subscription of county or town to
the capital stock of the. railroad corr
poration. was issued in s per cent county
or town bonds. The bonds passed immedi-
ately to Wall street They acted, to the
extent of their commercial Importance
as a steady drain upon the cash of the
land, where under normal conditions cash
entered only from one crop, at one sea-
af hos xsra nf fad r.
culation to employ the energies of resident
labor, or to convert the natural abund-
ance of soil and blessings of climate. oc-
casionally taxpayers resorted to the
chancery court to enjoin the proceedings
of bond issue, but Spectators were adroit
In many instances bonds had been sold at
Is cents and less. The courts were too
tardy.
rties four of the number In
the northeastern section and one in the
- were nopelessly debt ridden
when Governor O'ISea1 took office De
cember 1882. In interest bearing bonds,
the northeastern group owed-Lee, s3gu. !
oCo; Chambers, $357 600; Randolph, 100000;
Tallapoosa, $4,000. The county on the
west. Pickens. owed 100000 Some of the
bonds had been taken by local merchants
in selling their wares, but the bulk were
held on Wall street. Thirteen years. in
terest had now to be added to the prin-
cipal.
Farm property values decreased with
the increase of town population, drawn
from the country. Town industries did
not grow correspondingly with the growth
of town population. The people were poor
and could not endure excessive taxes. The
county records were burdened with liens
r~a a''arteaees on country property. En-
igration to Texas became heavy
taxpayers successfully sought from the
chancellor an Injunction restraining the
county tax collectors from collecting in
terest on the railroad bonds. The bond
holders at He north met this resort by
instituting suit against the counties in
the United States district court at Mont
gomery, where Judge John Bruce pre-
sided.
The district court sustained the suit Of
the bondholders. The case, Henry Clews
G. Co. of New York VS.. Chambers coun-
ty, was appealed, the appellant being the
county. The federal supreme court ap-
proved the court below.
But the tax collectors could collect moth
ing. Public opinion ruled out the claim
of the bondholders. This state of the
public mind was no doubt encouraged by
an act of the legislature of Houston's s
second term, which allowed county tax
collectors to give two bonds for the faith
full discharge of their duties. The stipu-
lation of one bond was for the safety of
taxes to pay county railroad debts or the
interest. There was no legal obligation to
make an official bond to make safe this