The Montgomery advertiser., 1904-10-09
BUSINESS PROPERTY.
The Cause of the Restricted District
 and the Remedy.

and the Remedy.
 Editor The Advertiser:
 1 ask the privilege of your columns ! to discuss a condition which is of in terest to the city, and concerning which
 many erroneous ideas exist as to it's cause
 business district of Montgomery, it's cause and remedy"
 As to the fact that the business dis trict of Montgomery Is restricted unduly be seen by the discussions of this sub ject by the business men through the newspapers and associations having
 the interests of the city at heart Although known by many, one cause of this condition, so far as I have observed, has not been brought to the attention of the public generally. This cause Is, the immunity of property in this district from taxation-not that it pays no taxes, but that 1t does not pay its fair share. according to It's value.
 This article does not propose to deal in personalities, but any one doubting the statement, has but to look at the assessment for taxes of almost every store or building in this district, and 1t will be found that few, if any, can be purchased at double, or sometimes even three or more times its assessment. It may be asked how this affects the restriction of the business district? It seems to arise In this way:
 Montgomery now has practically the same business district that 1t has had for twenty years, and as the city grew, both numerically and in prosperity, d greater demand was created for busi- ness property, which naturally in creased its value. But everything else being equal, the growth of the busi- ness area must be coextant with growth of the city In its residential parts; yet
 with a city of near three times the population of twenty-five years ago, we have the same business district gkt hn has not been enlarged the demand for property in the restricted district in- creases and the values, as shown by the prices asked and prices refused, rise the fact that our citizens. when they have accumulated money. seek to invest 1t in the restricted business area.
 Now, why should they not invest cause when a man purchases a small residence he pays taxes on 1t at or near It's full market value. Take in Mont Eomery the nelghborhoods where houses are valued at and cost about the sum of from $2,O00 to S2,5OO, and vacant lots are sold at $500 or $700 and you will find the property assessed at almost its full valuation-and here is one origin of the saying that the poor man pays the taxes.
 But again to the subject. If a cltl- zen has $1O0,000 to invest he naturally wishes to make a safe investment, and one which will insure as large an ln- come as 1t compatible with safety and, of course. if he sees that he can in vest his money in property which to a very large extent, will be exempt or immune from taxation, and at the same time yield a moderate income he will invest 1t there. So he buys real estate in the restricted district" In turn business men seek locations naturally
 where property Is the most valuable, consequently adding to the value Of the
 real estate.
 There are hundreds of people who would like to invest in and improve our city in its business portions who ! are prohibited by the prices asked by l the owners of property who hold 1t at
 abnormal prices and pay taxes upon ! largely less than one-half the prices : refu5ed.
 Non presidents and others wishing to | invest hundreds of thousands of dol | lars by buying real estate and erecting 1 handsome and expensive buildings l thereon In portions of the city suitable | (and which it appears our own citl- 1 zens are a little backward about do- ] ing). are driven elsewhere to invest 1 their money and this city does not get ! the benefit of the real value of the 1 property from the taxes or of the l buildings and improvements. Then again. high tax rates scare on | foreign capital and 1t cannot be tn- l duced to return on the idea of low as- ! sessments. Non-residents are always | apprehensive of increased assessments 1 whatever the rate.
 So 1t is we have what might be call