The age-herald., 1900-05-30
nIKMINGHAM,s BONDED DEBT

To the Editor of the Age-Herald;
 In Sundays Age-Herald Ned Brace"
 spoke of Birminghams bonded debt, and
 referred to Augusta, Georgia's, indebted
 ness, and to the fact that she floated 31s
 per cent bonds. Comparisons are odious,'
 and I do not intend to compare the two
 cities. Enough to say that under the con-
 stituton of Alabama, Birmingham during
 her existence as city from 1873 to 1899
 was allowed to levy only 50 cents on the
 one hundred dollars taxes for all city
 purposes, and that during all this time
 Augusta was paying from 11a to per cent
 taxes. In 1899. under a constitutional
 amendment, the city of Birmingham was
 allowed to levy tax of $1 on each hun
 dred dollars of property It is well-known
 fact that no tax commission tax as-
 sessment board has ever levied over 60 per cent of the actual market value of
 property in this city, and that thereby the
 city of Birmingham has greatly suffered.
 Eighteen million dollars is low estimate
 of the present taxable values of the city
 of Birmingham, and eighteen million dol
 lars will produce at 1 per cent $1S000O of
 tax money. The Birmingham constitution
 al dIletluIueul pTONlQeS lHdl OIe-ndll Ol lilc
 assessment on this $1S0G0, 900, to-wit: $90,
 0OO shall be appropriated exclusively to
 fund for the payment of the interest on
 the present bonded indebtedness of the
 city of Birmingham, towit: S1,610,00O the interest upon which is about $96500. This includes bonds issued at the rate of ,,
 6, and 8 per cent interest. Under act of
 the last legislature of Alabama, addi-
 tional bonds are to be issued in the sum
 of about $270.000, which refunds all past
 due interest, to-wit: one-half of the actual
 accrued interest for the past five years
 up to August 1, 1900. These bonds will soon be offered for sale, and by their sale Bir- | mingham will be put upon a higher stand | ard of credit. The city of Birmingham has | never defauted for a single day in any of its indebtedness coupons having been reg
 ularly paid for by a trustee committee and to this trustee it is indebted in the sum of $270,000 Let 1t be remembered that the city of Birmingham is not in debt one dollar for past due interest to holders of
 the bonds. It is the purpose of the pres ent city administration to issue a block of $270,00O in August bearing interest at the
 rate of per cent In addition to the reg ular bonds heretofore issued this will make an annual interest payment or $lO3,- l GOO, which will make an annual interest l payment of fixed charges by the city of
 Birmingham of s1O9,OOo against $9oo0O real and personal tax income, ana about S120,-
 900 license and privilege tax income There is nothing dark in this proposition, and there is a certainty that Birmingham will pay all of her past due indebtedness and keep fully abreast with the present and future demands of fixed charges, under an economical administration. Birminghams new $270,000 funding bonds should be sold at a handsome premium. With her old and outstanding bonds there is now no question of absolute security, and they are largely in demand, With positive as- surance that the coupons will be promptly paid by an honest and economical admin istration of the affairs of the city, which administration will be required to hold sacredly one-half of the revenue derived | from ad valorem taxation for the payment | of the interest and principal on the old | bonds as they accrue. S. IPSEY.