[1669] Acts of Alabama, 1870-1871, pp. 12, 13.
[1670] Ku Klux Rept., p. 172.
[1671] Annual Cyclopædia (1871), pp. 7, 8; Lindsay’s Message, Nov. 21, 1871; Senate Journal, 1871-1872, pp. 44, 320; Report of John H. Gindrat, Receiver of the Alabama and Chattanooga Railroad, 1871.
The engineers in the employ of the state reported that to put the road in Alabama in fair condition at the time it was seized would require $507,983.74. Twenty-four miles of rails were old ones that Sherman had burned. Report of Farrand and Thom, Nov. 9, 1871; Senate Journal, 1871-1872, p. 43. To complete the road, Gindrat reported that $1,000,000 would be needed. Senate Journal, 1871-1872, p. 337.
At the time the road was seized $10,500,000 from all sources had disappeared. Part of it was spent on the road, which, with all equipment, in 1871 was valued at $6,120,995. (An estimate of its value in 1873 was $4,183,388.) The capital stock authorized was $7,500,000, of which only $2,700,000 was ever paid in. Ku Klux Rept., pp. 172, 173; Auditor’s Report, 1871 and 1873. The earnings of the road from November, 1872, to November, 1873, were $232,583.96. The expenses of the road from November, 1872, to November, 1873, were $1,083,851.90. Report of the Receiver of the Alabama and Chattanooga Railroad, 1873.
[1672] Rice and Chilton, attorneys of the Alabama and Chattanooga road, gave the state much trouble. Rice was a scalawag, but several partners he had at that time and later were Democrats.
[1673] During the whole time there was a large element in favor of not recognizing the legality of the bond issues authorized by the carpet-bag legislatures. The carpet-bag government was not a government of the people, but was imposed and upheld by military force, some said, and had no right to vote away the money of the people without their consent. The Selma Times, March 5, 1874, voiced this sentiment: “Alabama must and will be ruled by whites.... We will not pay a single dollar of the infamous debt, piled upon us by fraud, bribery, and corruption, known as the ‘bond swindle’ debt. Let the bondholders take the railroads.” See Senate Journal, 1875-1876, pp. 213-221.
[1674] Annual Cyclopædia (1871), p. 8; (1872), pp. 8, 9; Lewis’s Message, Dec. 20, 1872; Senate Journal, 1872-1873, p. 43; Lewis’s Message, Nov. 1874; Senate Journal, 1874-1875; Final Report of the Committee of the Alabama and Chattanooga Bondholders, London, 1876; Acts of Ala., Dec. 21, 1872; Acts of Ala., March 20, 1875.
[1675] Lewis’s Message, Nov., 1874.
[1676] Ku Klux Rept., p. 173; Governor Houston’s Message, Dec., 1875; Senate Journal, 1875-1876.