8 



ALABAMA. 



deem best and safest for the interest of the 

 State, to recover the amount so paid from the 

 Alabama & Chattanooga Railroad Company." 



The Governor immediately went to New- 

 York, where the bonds had been negotiated, 

 and made the required investigations. He 

 found that 4,000 bonds, of $1,000 each, in- 

 dorsed by the State, were " regular, legal and 

 valid," and provided for the payment of the 

 interest thereon, as well as that on the $2,- 

 000,000 of State bonds. He ascertained, how- 

 ever, that a large number of bonds had been 

 prematurely issued and indorsed by his prede- 

 cessor, Governor Smith, and the interest on 

 such he refused to pay. This was soon pro- 

 vided for by the officers of the railroad com- 

 pany themselves. This prompt action restored 

 confidence in the credit of the State, but it 

 remained for the Commonwealth to indemnify 

 herself for the expense which she had in- 

 curred. 



The total cost of the construction of the 

 Alabama & Chattanooga Railroad had been 

 $9,274,557, while it was mortgaged to the ex- 

 tent of $13,000,000, the State holding a first 

 mortgage on the entire road and all its rolling- 

 stock, fixtures, etc. On the 31st of May the 

 company was declared an involuntary bank- 

 rupt by the United States District Court sit- 

 ting at Montgomery, on the petition of one of 

 its creditors, the State not appearing as a 

 party to the action. The decree was, however, 

 reversed by the Circuit Court in June, on the 

 ground that the adjudication was made "in 

 default of the debtor and upon a fatally de- 

 fective petition." While the bankrupt suit 

 was pending, the Governor made strenuous ef- 

 forts to induce the company to convey the 

 road to the State, believing, as he said, that, 

 " by such a voluntary conveyance, prolonged 

 and complicated litigation would be avoided, 

 and the interest of the State and that of all 

 other creditors better subserved." In the hope 

 of carrying out an arrangement of this kind, 

 Governor Lindsay and his counsel, General J. 

 H. Clanton, went to New York, where the offi- 

 cers of the company were then located. Fail- 

 ing, however, in their mission, they returned 

 to Alabama, and the Governor proceeded to 

 seize the road and its property, authorizing 

 his private secretary, Colonel Gindrat, to take 

 possession as the agent of the State. Every 

 possible obstacle and embarrassment was in- 

 terposed by the officers of the company and it 

 was necessary to institute legal proceedings 

 in the States of Tennessee, Georgia, and Mis- 

 sissippi, in order to get possession of the por- 

 tion of the road located in those States. In 

 Tennessee and Mississippi the desired decrees 

 were readily granted, and Colonel Gindrat was 

 appointed receiver of the property ; but Georgia 

 had also indorsed bonds for the company, and 

 Governor Bullock seized the portion of the 

 line running through that State, and refused to 

 give it up, although the Supreme Court grant- 

 ed an injunction against the company, and ap- 



pointed a receiver on behalf of Alabama, in- 

 structing the receiver " to negotiate with the 

 Governor of Georgia in regard to the posses- 

 sion and running of said road through this 

 State, as well as with other parties in charge 

 of and controlling other portions of said road 

 situated in other States," for the running of 

 said road through its entire length, from Merid- 

 ian to Chattanooga ; " it being the true intent 

 and meaning of the judgment of this court not 

 to interfere with the possession of said road 

 by the Governor of this State under the pro- 

 visions of the act of 1869 and 1870, without 

 his consent, but that the receiver appointed 

 by the court may negotiate with the Governor 

 for such consent, so as to enable him, as such 

 receiver, to secure the running of said road 

 through its entire length . from Meridian to 

 Chattanooga for the benefit of all the credit- 

 ors of said insolvent railroad company." 



After the resignation of Bullock, Governor 

 Conley acceded to the demands of Alabama, 

 and the entire road was run by Colonel Gin- 

 drat on behalf of the State. Meantime the 

 bankruptcy proceedings had been renewed on 

 a new petition, and on the 10th of November 

 the company was declared bankrupt by Judge 

 Busteed, and the 27th of the same month was 

 appointed for the meeting of creditors to elect 

 an assignee. 



The Legislature of 1870-'71 continued in 

 session until the 10th of March, but none of its 

 acts are of general importance, and nothing 

 was done possessing any political significance. 

 Resolutions were introduced favoring a re- 

 moval of the national capital to a more cen- 

 tral location, but was never acted upon. A 

 resolution directing an investigation into al- 

 leged outrages in certain counties was tabled. 



On the whole, the condition of society 

 throughout the State has been peaceful. There 

 were occasional reports of violence and out- 

 rages attributed to what is known as the "Ku- 

 klux Klan." In his charge to the grand-jury 

 in May, Judge Busteed, of the United States 

 District. Court, said: "I am informed by the 

 attorney for the United States that he has 

 reason to believe and does believe that in the 

 middle district of this State there have been 

 several gross violations of the law of Congress 

 commonly known as the 'Enforcement Act,' 

 and that it is his intention to submit these al- 

 leged infractions to your body for considera- 

 tion and action. It is to be hoped that the 

 representations made to the District Attorney 

 are either not founded in fact, or so exag- 

 gerated, as that, when you hear the evidence 

 in the cases, they may wear a less criminal as- 

 pect than is supposed. If, however, the truth 

 of the matters shall appear as alleged, your 

 duty is as plain as your oath of office is sol- 

 emnly imperative. That oath, taken in the 

 hearing of your fellow-men, and containing an 

 appeal to God, requires you not to * leave any 

 one unpresented for fear, favor, affection, hope 

 of reward or gain, but to present all things 



