The Montgomery advertiser., 1901-07-10

every township, every city, every sub division of the State, to issue bonds and that kind of a lsw would certain ly make the bond as valid as if 1t were enacted by special law, or by a spe- ciaI enactment of the General Assem- biy. 1t would be just as valid. The bond would sell just as readily. It would bring just ss good price as ii they were issued under a special act. Another remarkable thing l find that gentlemen here who have been prais- ing past legislatures and saying that they have all the virtues of the whole country embodied in them, are now afraid to risk the legfslatu for any thing. Some gentlemen ask the ques- tion when the subdivisions are pre- sented for adoption, suppose the legis- lature should not enact Q general law. Certainly. Mir. President, legislatures of the future will be as good men and can be trusted as far as the legislatures in the past. and at the rate we are proceeding here we might just as well wipe out this report and not try to incorporate it into the Constitution at all. because everything here which has been a source of prolific legislation in the past. is stricken out by this Con- vention just as soon as they heard 1t read. I do hope that the Convention will not strike out this particular sub division but that they will adopt it with proper amendment.
 Mir. Watts-The object of the includ- ing of this provision in this report Is not on account of the issue of bonds by any town or city. but simply to keep the legislature from taking the public time In passing a special law in each particular case. The legislature nf 12QG.T all af and the legislature of 1S9S-9 passed 43. and the last legislature, I am informed. passed about twice that many. We un- derstand that the Committee on Muni- cipal Corporations has presented re- port here which requires the legislature to divide the cities and towns of this State into classes and to prescribe the powers of each class. Necessarily the legislature will prescribe what powers each class has to issue bonds and will provide that each class, if 1t has an indebtedness now can issue bonds for the renewal of that indebtedness and that general law passed as recom- mended by the Committee on Munici- pal Corporations, will give any city or town in this State that has the right to issue bonds. or which may have a right in the future to issue bonds. or as great a right and as sacred a right to issue them as a special act could in each instance. Furthermore, this gen. eral law which would provide the issue of bonds by municipalities, might pre- scribe the time those bonds should run in what amount they should be issued what rate of interest they should bear, and what conditions they shall have prescribed. generally. for the issue of bonds just as we'll as they could if each nut; and town in the State will know and every bondbuyer will know the condi- tions which apply to the issue of bonds in our State aud they will not be re- quired to look into the provisions of the special acts passed for special cit- ies.
 MT. Lowe (Jefferson)-The gentle man says that generally the cities will derive the same benefit under a gen. eral law that they will under a special law. To illustrate the difficulties which are in the way T. will ask the gentleman to state how he expects by such law to regulate the rate of interest. One municipality may borrow money at a considerably lower rate of interest than another
 Mr. Watts-They can determine that by providing in the general law that the bonds issued by the municipalities at such a rate of interest as the local authorities may determine.
 Mir. Lowe Gefferson)-You want to throw the whole responsibility. then. of issuing the bonds upon the local au- thorities. and you will not come to the General Assembly. but you want all of that authority to be stated In the general law?
 MT. White-The general law will pro- eel ant.i .ivnA hxrx hA han nhe, will be issued.
 Mir. Lowe--You cannot designate the amount of the bond, you cannot provide whether 1t will be a gold bond or whether they shall issue currency bold.
 Mir. White-The object of the Con- mittee is to make all bonds issued by municipalities in the State upon prac- ticahy the same terms and conditions.
 Mir. Lowe-You want to fix the Con- stitution so that every municipality in the State of Alabama must issue bonds on the same conditions, under the same terms, regardless of what the pur- chaster wants, or what the city may design.
 Mir. Watts-No.s but that they shall issue them in accordance with the srfl- eral law enacted applying to the dif- ferent localities.
 MT. Long (Walker)-Is 1t not fact that the school bonds in some local.- ties had a mortgage upon the school building, in order that the bonds may be placed. therefore, would all school bonds in the State have to be issued on the same basis?
 MT. Watts-l do not know of any city that has been so unfortunate as to issue bonds that way.
 MT. Long (Walker)-Is it not fact that bond buyers usually want and nearly always want a special act pass ed. regulating the issue of a certain class of bonds?
 Mr. Watts-I do not think We are leg islating especially for the bond buyers, but that we are legislating specially for the interests of the people ot Ala bama.
 MT. Long (Walker)-Is not the in terests of the people of Alabama in the best price that you can get for these bonds?
 Mr. Watts-Yes, I think so.
 MT. Long (Walker)-Do you think that little town out here can borrow money on bonds as cheap as the city of Montgomery?
 MT. Watts--In proportion to it's rev. enue, yes.
 MT. OiNeal-One of the greatest evils in Alabama has been the unlimited issue of bonds by the counties and municipalities of this State. If you take the record of the last few I.egis- latures you will find that over eight millions of indebtedness has been ere ated. The result has been that the N-I-