ALABAMA. 



21 



reach of the mandamus writ of the Federal 

 courts. 



Among other sources of authority to sustain 

 the action of the Legislature in thus repealing 

 the charter of a public corporation that was in 

 debt, was a reference to the following cases : 



But tills whole subject, both as to the power of the 

 State and as to the right of the creditors or public cor- 

 porations, has lately been BO clearly denned and settled 

 by the Supreme Court of the United States in the case 

 of Barkeley vs. Levee Commissioners et. al., Ill Otto, 

 p. 258, that there is now no room for doubt upon the 

 subject. Wo will set out the head notes of this deci- 

 sion: 



" 1. A public corporation, charged with specific du- 

 ties, such as building and repairing levees within a 

 certain district, being superseded in its functions by a 

 law dividing tne district, and creating a new corpo- 

 ration for one portion, and placing the other under 

 charge of the local authorities, ceases to exist except so 

 fur as its existence is expressly continued for special 

 objects, such as settling up ita indebtedness and the 

 like. 



" 2. If, within such limited existence, no provision 

 is made for the continuance or new election of the offi- 

 cers of such corporation, the functions of the existing 

 officers will cease when their respective terms expire, 

 and the corporation will be de facto extinct. 



"8. In such case, if there be a judgment against 

 the corporation, mandamus will not lie to enforce the 

 :neut of taxes for its payment, there being no 

 lli,vrs to whom the writ can be directed. 



" 4. The Court can not by mandamus compel the 

 new corporations to perform the duties of the extinct 

 corporation in the levy of taxes for the payment of its 

 debts, especially where their territorial jurisdiction is 

 not the same, and the law has not authorized them to 

 make such levy. 



"5. Nor can the Court order the Marshal to levy 

 taxes in such a case ; nor in any case, except where a 

 specific law authorizes such a proceeding. 



" 6. Under those circumstances, the judgment cred- 

 itor is, in fact, without remedy, and can only apply to 

 the Legislature for relief." 



This opinion was delivered in 1876. It speaks in no 

 uncertain terms ; it is the deliberate judgment of an 

 undivided Court, and its authority can not be ques- 

 tioned by any power in this land. It decides that a 

 State has the power to abolish a public corporation, 

 even when it owes debts, and that new corporations 

 may be created over the same territory which are not 

 responsible for the debts of the defunct corporation ; 

 ana further, that the creditor has no remedy in the 

 courts whatever, but can only apply to the Legislature 

 for relief. 



Then, under this decision, the legal right of the 

 creditor only extends to the assets ot which the cor- 

 poration dies possessed, but the creditor has no lien 

 or charge upon the private property of the individuals 

 who rcsidea within the limits of the defunct corpora- 

 tion. (Heine vs. Levee Commissioners, 19 Wall ; 

 Barkeley vs. Levee Commissioners, supra.) These 

 cases overrule and repudiate the extreme doctrines as 

 to the powers of the Federal courts which Judge Dil- 

 lon attempted to establish in the cases of Ste. Gene- 

 vieve vs. Welsh, and Lansing vs. County Treasurer. 

 (Dillon C. C. Reports, 1871, pp. 130, 525.) 



The misfortunes of Mobile were ascribed to 

 the decline of its prosperity. For proof of its 

 decline, it is stated that on January 7, 1860, 

 there were in Mobile Bay 74 ships and barks. 

 On that day the cotton receipts for the year 

 had been 490,761 bales, and of this number 

 there had been shipped to New Orleans 17,797 

 bales. On January 7, 1871, there were in the 

 port only 19 ships and barks, and the receipts 



of cotton to that date had been 207,099 buleu, 

 of which there had been shipped to New Or- 

 leans 37,453 bales. On January 4, 1879, there 

 were in port only 13 ships and barks. The 

 receipts of cotton were 215,521 bales, but of 

 tliis number there had been shipped to New 

 Orleans for sale and export the enormous sum 

 of 91,005 bales. Nearly half of the receipts 

 have gone to New Orleans. At the time of 

 the passage of the acts the Mayor of the city 

 stated that its bonded indebtedness was $2,- 

 497,856. He was in favor of a refunding of the 

 debt at the rate of CO cents on the dollar, bear- 

 ing 5 per cent, interest for ten years, and then 

 6 per cent, until maturity running for a pe- 

 riod of thirty years. He thought that if this 

 was done the city could pay the interest 

 promptly ; ho was satisfied that with judicious 

 management the expenses of the city could 

 be reduced to $160,000 per annum. To meet 

 this there was 



Three fourths of 1 per cent, on $15,000,- 



000 taxable valuables $112,300 00 



Licenses, wharves, etc 70,000 00 



Total city expenses $182,500 00 



Surplus over $160,000 $22,500 00 



If the city debt were refunded as suggested, 

 the whole tax of the city would be 1J per cent, 

 on taxable values. In the opinion of its chief 

 officer, by the lengthy period during which a 

 quarantine was kept in force in 1878, heavy 

 expenses were incurred ; but for this the city 

 would have met all its obligations. The statis- 

 tics of the trade of the city for 1879 have not 

 yet been made up ; but, according to the report 

 of the Board of Trade, the business of Mobile 

 for the year ending September 30, 1878, shows 

 a considerable increase. The receipts of cot- 

 ton were larger than during the previous year, 

 while the value of exports aggregated over 

 $19,000,000, an increase of more than $6,000,- 

 000, and the imports ran up from $648,404 to 

 $1,148,442. The value of the lumber exports 

 increased $50,000, and the importation of all 

 staple articles of merchandise was largely in 

 excess of the previous year. The receipts of 

 cotton advanced from 27,000 bags in 1877 to 

 51,400 bags in 1878. A second cotton-mill 

 was put in operation in Mobile during the past 

 year. This mill began work with 1,344 spin- 

 dles, and produced from 900 to 1,000 pounds 

 of yarn, rope, twine, carpet-warp, etc., per 

 day, using from 10 to 12 bales of cotton per 

 week, and employing about 85 operatives. 

 With its present capacity it can use 600 bales 

 annually. 



The three commissioners were appointed by 

 the Governor, and they at once proceeded to 

 take the required oath and file their bonds. 

 On February 15th they presented and filed in 

 the Chancery Court their petition to take 

 charge of the city property and assets as pro- 

 vided by the act of the Legislature. This ac- 

 tion prevented the appointment of a receiver 

 by a Federal court. The case of Memphis (see 



