The Montgomery advertiser., 1901-07-06

get the good things of the world that people can get wno have good credit and are entitled to get credit.
 MT. Pillans-You mean that they have already exhausted this arbitrary limit of debt2
 MT. walker-No sir. do not think that is an arbitrary limit. l think there should be some reference. under the tax limitations which we have. and the capacity of municipalities to meet their indebtedness.
 l desire in discussing this mat ter and expressing my opposition to the pending amendment to ex- l plain to the Convention that in event of | its being voted down by the Convention that the substitute that I have had read in their presence will be offered.
 Mir. ONeal Nauderdale)-Mr. Presi- dent. I see no necessity for the passion and temper which has been displayed in this debate by those who oppose the substitute offered by the gentleman from Lauderdale. Distinguished gen. tlemen on this floor have denounced the substitute as an effort to repudiate debts, and to involve the cities and towns of Alabama in bankruptcy and ruin. Those of us who favor the sup stitute are characterized as the -advo- cates of increased burdens upon the people. This charge is wholly unfound- ed and I am sure would only be made in the heat of debate. What Is the proposition that we are considering! It is simply & plain business proposition The report of the Committee on Tax ation. in my judgment, if adopted by this Convention. would result in pre- venting any progress or improvement by the great industrial cities of this State. It says that no city or town shall go beyond a limitation of per cent, and makes no exception for street improvement. No gentleman who has spoken has undertaken to ans wer the array of facts and figures of fered by the gentleman from Lauder dale. The figures he has produced show beyond controversy that all of the principal towns and cities of this State have already a debt exceeding to per cent Then if you adopt the sec ton as reported by the Committee on Taxation. you say to the city of Flor ence. to the city of Birmingham, to the city of Decatur. and to all the great in- dustrial cities Of the State, that you have already reached your limit, and you shall no longer continue the sys- tenn of street improvement now pre- vailing. What is the system that pre- vails in most of the cities and towns in this State? On account of the limi- tation which now exists in the Consti- tuition. the revenues derived from taxes are not more than sufficient to meet the ordinary expenses of city government. Our cities are confronted with the necessity to secure streets and sidewalks, to levy a tax upon abut- ting property. That tax is paid by the city, and>a lien enforced for its col Tvx I,A att <xNT Mo- tx, the other cities of this State, after the improvement is completed. the city is- sues to the contractor a bond payable in ten years. That bond is negotiat- ed and the property owner can come up and pay 1t in ten annual payments with a loW rate of interest. Under that system all of our great cities and towns have secured good streets and payements. Now I am sure 1t is not the disposition of this Convention to prevent any further improvement of that character. What is the substitute offered by the gentleman from Lauder dale? The first provision is that no oity or town shall become indebted in an amount exceeding per cent. of the assessed valuation of the property. What is excepted from that? First. Section 4. is indebtedness in anticipa- tion of collection of taxes. What ob- lection can be made to that? The bur- den of taxation is not thereby reduced. If the city has any revenue which it will receive at a particular time upon its taxes. what objection can there be in the case of an emergency to borrow ing money in anticipation of the col lection of such tax? Such emergencies occur in the life of every city in the State, and hence it would be manifestly unjust to call the temporary loan in anticipation of taxes a debt upon the people of the city. Now, the next Section B. is bonds issued for the pur- pose of purchasing water works or the construction of sanitary sewerage. Unless you adopt that provision, none of our great cities can purchase their water works. because they have al ready reached a ' per cent. indebted ness-with possibly one or two excep- tions. I mean all cities over 5000 in- habitants. And what is the difference between the water works and debt? When you purchase a water works sys- tenn you purchase property that yields revenue. you increase the tax able value of your property. Now, the next is c, obligations inquired and bonds issued to procure means to pay for street or sidewalk improvements or storm water sewers, the cost of which is to be assessed against the property abutting the same. That ought not to be considered a debt of the city, un- less the city pays fer the improvement. and here I am willing to accept some thing on the line suggested by Judge Walker. But where the improvement is wholly paid by the abutting proper ty owner, it is not debt of the city. 1t is merely a debt which the city guarantees and for which guarantee it has sufficient collateral If l guar aptee a debt, endorsing a note with collateral worth ten times the amount of the loan, 1 am not creating any debt, and unless that provision is in- corporated in the section as reported by the Committee on Taxation, as the gentleman from Jefferson has stated, 1t will result in checking forever the progress now made in all the great in dustrial cities of this State. l am sure that such is not the wish of this Con- vention. You would say to Birming- ham. Florence. Decatur. Huntsville. ] Dothan Tuscaloosa and Montgomery. which have now reached the limitation provided for that when you undertake to negotiate bonds for street improve ments. the Constitution forbids it, and hence the progress now being made in the great industrial cities of this State must cease.
 MT. MacdonaId-I would like to ask the gentleman d question.
 The President-Will the gentleman consent to the interruption?
 MT. O'Neal-Certainly.
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