The Birmingham age-herald., 1922-02-07

negotiations between the state or Alabama and the receiver of the bankrupt Montevaiio Mining Com pany for the purchase of the prop critics of the mining company and for the operation by the state with convict labor, are contingent upon the appointment of a trustee or trus- tees 10 be at a meeting of the credi- tors of the company, February 14.
 While the offer for the purchase of the properties is made tdirectly to Val J. Nesbitt as receiver, it Is be- lieyed at the creditors meeting the offer will be submitted for the ap- proval or reference to the trustees who in turn win submit the proposal to the federal court for ratification.
 Meanwhile legal opinion as re- spects the authority Of the state for purchase and operation of the mine differs. State ownership of coal mines is not 8 new departure. while equally as many states not operating mines, lease conviots for such hire. Among these is Alabama, but 1t is not thought likely that Alabama will at any time soon operate upon. such a scale according 10 legal talent who base their contention on the con- stitution of 1901 which reads:
 Section 9S.) The state shall
 not engage in works of internal
 improvement, nor lend money or
 it's credit in aid of such nor shall
 the state be interested in any
 private or corporate enterprise.
 nor lend money or its credit to
 any individual, association or cor
 poration."
 Judge Mayfield's Opinion
 Prior to receipt of the offer of the state proposing to purchase the prop critics of the company at AidricA mine, a conference was held between Judge J. J. Mayfield. former code commissioner and Marion J. Rushton, both representing the state attorney general and Judge Edmund H. Dry CT, referee in bankruptcy. At this time it was said by representatives Of the attorney general that the state would make such proposal for pur- chase of the Alrdich properties. Fol lowing is the correspondence since passing between the referee and Judge Msyfield.
 When here a few days ago, 1 think you stated 10 me that the state of Alabama has authority to purchase the MonteVallo Mining property Kindly give me citation to the law upon this point, as it will be. doubt less, of importance to me as referee in handling the estate"
 In reply to the request of Judge Dryer. Judge Mayfield under date Of the 4th, when the proposal was first made public said in his letter:
 Section 64s1 of the Code of Ala bama probably contains the most di- rect authority to the board of convict inspectors to purchase or lease lands on which to work convicts. All pre- vious boards and the attorney gen! eral have so construed this act Of February 2e, 1908, page 393, which formed the basis of the code provis- ions, as authority to buy or sell lands Recent acts of the legislature, which of course you are familiar. confer all of the rights, powers and duties of the board of convict inspectors upon the board of control and economy
 Section 64s1, to which tho attorney generals office referrs by the let ter to Judge Mayfield follows
 ITO authorize the state of Alabama to employ it's convlcts in mining coal:
 Law Is Cited
 Section i. Be it enacted by the leg islature of Alabama that the board of convict inspectors, with the ap- proval of the governor, shall have the power and authority to employ any male convict suited physically to such work. in the mining of coal upon lands acquired by the state by lease or otheriwse, for and on ac- count of the state, and the same au- thority to hire convicts to coal op. orators upon such terms as may be agreed upon"
 This section has never once been disputed by those who believe the