Governor Houston also attempted to reform the state's educational system. However, his efforts were unsuccessful due to his administration's inherited debt from railroad bonds. Houston created a three-man commission, headed by himself, to study the debt issue and to recommend a program to retire it. Tirstam B. Bethea of Mobile and Levi W. Lawler of Talladega served as the other two commissioners. Both Lawler and Houston had history of working as railroad directors, creating a conflict-of-interest. The commission eventually set the legitimate debt at $12.5 million. Bondholders of the Republican-controlled Alabama and Chattanooga Railroad were the most adversely affected.