The Montgomery advertiser., 1901-06-29

we now have a tax rate of seventy-fye | and not on the prospect of a reduction? MT. Browne-No sir, 1t is not; 1t Is | simply based upon good sound business principles. There Is not a dealer m
 bonds in the United States who would | not be absolutely satisfied with these figures, and willing to take these bonds at the lowest possible rate. MT. Pres ident, I have just had a little experl- ence in asHisting to float some bonds for the city of Talladega, and we got the bonds of that city floated, though 1t is true we had to pay nlgher Iats | of interest. but the city had defaulteo for seven years upon its interest ana only paid up one-half of the interest. and if we had had any sucn snoWlns as this,- that little town could hase floated her bonds at l-2. Bona noio- CTS do not require that heavy rates or taxation be assessed against the people before they will take the bonos. Al that is necessary Is to show them that there are sufficient assets to pay the interest upon the bonded indebtedness. How muSn money pray. will It taKe to pay the interest at IA or l-2 per cent :, on S9 900, 900? A little over $3OU'" 900, and this year the State of Alabama collects in taxes and licenses over *z'- 800, 900. Now I would like to see tne bondholder that would be afraid 10 FISK the State of Alabama paying out oL that the sum of $3OO0Oo: mere ls s120, 900 interest that can be saved Tn refunding that bonded indebtedness that we do not take into consideratloh at all.
 MT. President, gentlemen who op- pose this reduction, probaoly nave nol thought or remembered, or prooapiy never knew, that we are bulloing III the State of Alabama today cotton fac- tories at the rate of $S,0OO.OOO year. Those cotton factories, as rue, ars small factories, with a capital O. rom $1O0, 900 to $150,000, and l have not known any of them to run, three years vii bo,,t doubling the capital and doubling the capacity. If the rate or building cotton factories keeps up as it has since the passage of the law or 1897, which exempted them from taxa ton for ten yeas, until that exenip tion expires in 1907, we VIII, III lSv'' pe collecting taxes at low estimate upoh S75. 900 GOO invested in cotton factories.
 But gentlemen may say that we have no right to expect that it will De kept up. Possibly not If they do not keep 1t up, in 1907 we will be collecting taAes upon at least 40,0O0,0o0 of cotton facto- ries without building any more.
 
 who oppose this reduction, that we can not count on any increased values ln the future. When this report was made, the argument was made against if that we had no right to expect any increase this year over last. tnousns then that any man in Alabama who aid not know that there would be an lh- crease of taxable values this year over last, certainly had his eyes shut all the while. The reports of the Prooate Judges show that the increase thls year will be at least $12,OOO,OOO
 Now, panics have always come in the past. in eras of ten years. Sometimes they have come as close together as eight years, but never any closer. Four years ago was the period of the great est depression of property values Tn Alabama, since the panic, or since the boom, There were only $24l.OOO,OOO or taxable values in Alabama four years ago. They have, in four years, stead lily increased until last year they were $2eO O00. .000, and they will be $21o,00O,OOO this year. Now gentlemen who are so much afraid that the credit of the state of Alabama will be hurt, must take into consideration that we have got at least four years more of prosperity during which time
 MT. Oates-Does the gentleman state that the taxable values in this year are $27S, S,000, 900.
 MT. Browne-They will be this year.
 Mir. Oates-That is estimated?
 MT. 'Browne-It is estimated. have the figures since we adjourned at dtn- ner from two other counties.
 MT. Oates-That is a larger amount of taxabl property than has ever been shown.
 MT. Browne-No, sir; we have not got back to the taxable value before the last panic.
 Mir. Oates-In 1891?
 MT Browne-Just about that. It was about $275, ,000, 900 or $276, ,000, 900.
 MT. Oates-But 1t will make 1t larger than 1t ever was, if 1t is $27S,000, 900.
 MT. Browne-Well, practically the same; may be one or two million over, where We are only in the middle of a period of prosperity. We will have four such years more, If we presume we will have a panic in four years; but it does not make any difference when you do not count on one dollars increase from this time one, because gentlemen can get up and say, in answer to that, that you believe that 1t will increase, and we believe that 1t will not You do not need any increase in the taxable values to go on with a 65-cent rate, after the increase of this year. Ger tainly, gentlemen will not argue that we are goin to have a panic next year. If they do, in answer to that I want to say: did you ever know a bank to keep all of it's capital and all of its deposits oh hand all the time looking for a panic, that is certain to come some time in the future? Must the State of Alabama collect taxes for which it has no legitimate use from the people, and hoard up the surplus in the treas ury looking forward to day when panic will come upon us? With that three hundred and forty-seven thou sand dollars of absolute surplus in 1902, and six hundred and seventy-ftve to seven hundred thousand dollars actual cash balance in the treasury, with the power in the Governor to borrow three | hundred thousand dollars, we would be in a condition to stand worse panic | than we have ever known.
 Mir. Oates-Will the delegate allow | another interruption?
 Mr. Browne-Yes.
 Mr Oates-Is it not without eXcep- | tion that in any and all governments | we ever knew anything about, when | there is a surplus in the treasury 1t leads to very extravagant appropria- tions?
 MT. Browne-I thank the gentleman for the suggestion. They do not wait, MT. President until you have got a | surplus: they simply wait until you | have got a possible surplus in the fu- ture. and then members flock down to | the General Assembly, each one with l a pet scheme to get an appropriation |