The Birmingham age-herald., 1904-04-21
ID NEGOTIATE FOR TIE SCHOOL BONDS Committee Appointed Under City Council Resolution. BONDS TO BEAR 5 PER CENT City Officials Think There Will Be Lit tie Difficulty In Floating the
 $2oo,o00 Issue-S. Stei-
 ner Talks.

A committee of five composed of the mayor, the city attorney, the chairman of the finance committee and the chair man of the judiciary committee of the city council and the chairman of the finance committee of the board of educa- tion was appointed by resolution adopt ed at a regular meeting of the council last night to negotiate for the sale Of $20O 900 of bonds for the purpose of se- curing funds with which to erect a new high school and two grammar schools.
 The following is the resolution which was presented by Alderman Henry B. Gray, chairman of the finance committee, at the city council meeting last night:
 Be it resolved by the mayor and AL dermen of Birmingham. That committee of five, to consist of the mayor, the city attorney. the chairman of the finance committee and the chairman of the judi ciary committee of the board of mayor and aldermen, and the chairman of the finance committee of the board of educa- tion, be appointed by the mayor to ne- gotiate the sale of $200,00O of twenty | AC~ not less than par and draw interest at rate not exceeding per cent"
 Mayor Drennen and other city officials express the opinoin that the city of Bir- mingham will not experience any great trouble in floating the entire bond issue.
 s. Steiner of the banking house of Steiner Brothers, in discussing the bond
 
 S. Steiner's Views.
 Tt odes not appear from information I have that the revenues of the city justify increase of fixed charges. The income of the city must be increased by increasing assessed values Property is not assessed at more than twenty-five per cent of its actual value. The assement of this city Is riduculously low, and of course the few who believe in fair, just and equit- able assessment will not care to take the initiative and bear the burden for the rest.
 This city, like other municipalities in other staes, ought to have an independent system of assessment, separate and apart from state and county, but this seems im- possible here under existing laws. Here tofore the city has at least had represen- tation before the board of county reve- nue to cooperate with and look after its interests and see that a fair assessment of city property was obtained and urge the claims of the city in this respect be- fore the board of county revenue and back tax commissioner but in the past year or two the city authorities have even neglect ed and omitted to have some one to pro- tect its interest in this important matter.
 Judges of Value.
 "The city should have one or more per- of ici inc board to insist upon just and equitable assessment of both real and personal prop erty within the city limits, and until this is done l see no way by which the reye- nue of the city is to be increased. this being the only practical means of protect ing and strengthening the city's credit and enlarging its borrowing power, and whenever this is done the city will, In my judgment, be able to float more bonds. The city is like an individual-its credit is based upon its assets. and the tax values are the real assets of the city and not parks, cemetery grounds, school houses, fire department city hall and jail buildings The percentage of its bond is- sues must be based upon the percentage of it's assessments.
 ''As matter of fact, few states permit municipalities to issue bonds exceeding five per cent of the assessed values, which is conservative and is considered safe. This citys debt is about thirteen per cent of its assessed values. Public properties, such as I have just mentioned, are esential to municipal government and are not sub ject to execution and sale for debt. More over some of this city's school house, the city hall and jails are already mortgaged under special legislative authority to pro- vide money with which to erect them, and the city's graveyards will prove poor security to the bondholder if he must take them because there are but few plats left therein to sell. The city will, in my opin- ion. find no trouble to sell its bonds when its assessments are commensurate with its debt. If the city authorities will take means to bring about a raise in assessed values, the bonds will reaoIiy sell them selves and competitive bids will follow, for safe municipal bond is always in demand.