The Montgomery advertiser., 1901-07-06

pose to ofEcr when the opportunity pre. seuts itself, or when the parliamentary
 situation is such that an amenomen'
 can be offered. and ] desire now t' have the proposed Amendment reao a'
 a part of my remarks.
 The amendment was read as foIio"s Sec. 10. No city, town or other mum | cfpai corporation shal! become indepteo
 u an amount exceeding per centum o
 the taxable value of the property | thereof; Provided, that for the con- l struction or purchase of waterworks gas or electro light plants. sahltary 1 sewerage, or street or sidewalk lm- plcvements, an additional indebtedness not to exceed 3 per centum or such taxable value may be created so as 10 be charge upon the revenues rom taxation of such city, town or other municipal corporation, and that any deots or liabilities in excess Of sucn : per centum limitation incurred by such city, town or other municipal corpora ton In the construction or purchase of water works, gas or electric light plants, sanitary sewers, or street or sidewalk Improvements. may be made charges upon or against, respectively. such water works, gas or electric light p-~".ect 8Ad 0Rtu tut llCIIS ih LhNot VI or the liabilities to such city. town or other municipal corporation, acquired m or by reason of the erection or con- struction of such sanitary sewers. or street or sidewalk Improvements: Pro- vfoed. further, That the limitations contained in this section shall not ap- ply to any indebtedness in excess of such Limitations already created or au- thorized by now existing law to be created.
 Mr. Walker GMadison)-The Conven- ton VIII observe if the purport of that amendment has been understood from ten reading of 1t, that the effect of it is 10 leave the 5 per cent limitation made ny the Committee as it stands, to leave me per cent additional power of con- tractins debt stand to the extent of iiihfttng that power of contracting debts 10 those which will he a charge upon the tax reevnues of the municipalities. put to remove the limitation to the ex- rent or allowing municipalities to pledge or make charges upon the prop critics or utilities that they acquire in making debt above that limitation. For instance. in the case of the acquisi- tion or a water works by munich panty, 1t would be competent to create debt In addition to the per cent umitation. to the extent of per cent mutation. which would bear upon the revenues from taxation of the munici palities. but beyond that 3 per cent limitation. the Gebt for such water works would be chargeab ble, not upon the revenues from taxation of the municipality, but upon the water works plant, that they might acqurie.
 MT. hOEprS fSumfnrl-Tbat @L~. could mortgage their plant?
 Ar. Walker-Yes, so far as they have security to offer which is acceptable In commercial circles, that their powers shall not be restricted put beyond the limits of such security, a prudent limitation upon its capacity to create debts shall be tlxeo Dy this Constitution, and I con- ceiVe that It cannot be argued by any one that some such limitation as thls should not be put upon the munich palities of this State. MunicipaItties should not be left in a position to com init financial suicide at any time for the creation of any kind of utilities for the municipalities. They should have thrown around them the safeguard and the protection which prudent individ- uals should throw around themselves. ana oeots in the case of municipalities no more than in the case of individ- uals should be created beyond the pos- slbllity of satisfying those debts.
 Mr. Weakley Uanuderdale)-Will the gentleman permit me to ask him a question?
 The President--Will the gentleman consent to an interruption?
 MT. Waiker-Certai1ly.
 MT. Weakley-Suppose, for instance. the municipality has already incurred an per cent. debt, what security has that municipality under that plan. to oHer to the owner or owners of the water works plant for the payment of that. except the revenue from 1t?
 MT. Walker-If it be good plant as stated in the case of Montgomery. the mortgage upon the plant would be a good security. It was argued that Montgomery had recently acquired a plant that was in such a situation that the mortgage given and the securities upon the plant were sufficient to float the bonds in the market and give se- curity-as matter of fact the reve- nues from the property were more than sufficient.
 Mir. Weakley-Did I understand the bonds issued by the city of Montgom- cry for the purchase of water works were not general obligations of the city?
 Mir. Walker-I did not say that, but in the argument made here, it was argued by the gentleman from Mont gomery that the water works plant it. self was sufficient to more than reim- purse the city for the liabilities in cured by it.
 Mir. Weakley-The gentleman did not understand the question. I asked if the city of Montgomery had no other se- curity than the plant itself, which they were to buy. could they have bought that plant upon the faith of the reve- nues of the plant alone. without the endorsement and credit of the city of Montgomery.
 MT. Walker-It seems to me they could if the statement made about the earning capacity of the plant is correct, but whether it could or not if 1t has exhausted its power of creat- ing debts which can in any view or probability be paid, it ought not to go any further.
 NIT. Oates--I suggest to the gentle man from Madison that he was quite right, they knew that the income from 1t would be ample to more than pay It.
 MT. Walker-I say that this addi- tional security given a municipality in arranging to borrow money upon such plants as these, the securities will be so arranged as to secure tine proper maintenance and the proper revenue producing capacity of the plants that are pledged as security. and not only the public officers but the persons from whom they acquire money will be interested in seeing that the arrange