The Montgomery advertiser., 1905-12-30
OLD BONDS ..OF MOBILE
TRUSTEE INGE ISSUES A LETTER
 OF EXPLANATION.
New Line of Steamships VIII De In- augurated Between the Gulf City and South American Ports.
 Funeral of Mir. Rice.
Advertiser Bureau,

[ outstanding and due and payable Jan
 uarv 1, 1906. has issued a circular to holders of the bonds of issue in 1881,
 setting forth the complicated condi-
 tions surrounding the proper officials with reference to the refunding of the / present debt, he being the trustee. In his letter he gives facts which were brought out at recent sessions of the General Council and outlined, from time to time in The Advertiser. In the circular, Trustee Inge reviews the act of 1881 authorizing the issu-
 ance of the bonds. many of which have
 been redeemed. He recalls later act
 of the General Assembly looking to
 provisions whereby the bondholders might be protected in event the present corporation of the City of Mobile failed
 to provide for retirement, at maturity on January 1, 1906. He. cites that the Governor is empowered to take certain steps. by and with the advice and con- sent of the Senate, to arrange for ex- tension of payment.
 The presidents of the several bunk ing companies of Mobile, after a care full investigation of tho letter. affixed their endorsements in order to assure the world generally and the bondhold- CTS in particular. that the bondholders will be amply protected in their in vestments. The letter of Trustee Inge ana the endorsements or the neauS pt the several banking institutions read thus:
 To the Holders of Mobile City bonds,
 issue Of 1881:
 The State of Alabama adopted a new Constitrtion in 1901, which materially chenead the method of enacting special and local laws. and made provisions for suecia1 requirements in the passage of such laws. The Legislature construed these provisions and adopted special and local laws according to their con- struction of the Constitution. but the Supreme Court differed somewhat with the Le~islsture in It's construction of the Constitution. and many of such spe- ciel and local laws were held to the un constitutonal. on account of the method in which thev were adorted.
 The Lerislatu~e passed law pro- vi1ire for the issuance of bonds hy the City of Mobile, for inc puroose Of talk ing up the issue of 1881 This act was of the character affected bv the new Constitution, and srme question has been raised as to whether or not these properly compiled with in the passage of this act, and because of this and another constitutional question, and some objectionable features in the reading Of the act itself. the city has been unable to dispose of the new issue of bonds.
 The act of the General Assembly, of Alabama, under which these bonds were issued provided, that if proper provi- sions were not made for the payment or retirement at maturity, of all the bonds at the session of the General As- sembly of Alabama next preceding January 1st, 1906. that the Governor of Alabama should, at once, nominate and appoint three commissioners, by and with the advice and consent of the Senate, to arrange for the extension pr payment of these bonds, and to exc cute and issue in the name of the City of Mobile such bonds and coupons as might be fit and proper to provide for such payment or extension. and that the provisions of the act under which your bonds were issued for the levy and collection of taxes should continue in force for the protection and payment of such bonds and coupons. Owing, however, to the fact that the Legisla- ture did at its session next preceding supposed to be ample provision for the retirement of your bonds, the Governor did not take the action contemplated by the provisions that I have just re- ferred to.
 At the time that the act securing your bonds was passed, the General As- sembly of Alabama held biennial ses-
  mained unchanged, the Legislature would now be in session. This was by the Constitution of Ala bama of 1901. and the sessions of the made quadrennial, so that the Legislature will not meet again in regular session until January, 1907. (see the acts of 1S7S-9 and 1880 and 1SS1).
 By the acts under which your bonds were issued. the tax of three-fourths of one percentum for each year until the bonds and coupons Issued under it are fully raid is expressly levied. but the act did not provide any machinery for the collection of this tax beyond January 1, 1906. except through com missioners to be appointed by the Gov ernor, and which have not been ap- pointed for the reasons l have stated. Tn my opinion. this with the assets of the trust which I mention below will probably constitute sufficient fund to take care of the interests of the bond holders between January, 1906, and the meeting of the Legislature. but the Chancery Court will probably be obliged to provide the necessary ma chinerv for the collection of this tax. In aid of the trust. which was created by the act under which your bonds were issued.
 The assets of the trust, in addition
 
 tioned, consists of the city wharves, i the back taxes remaining unpaid on | the books of the special tax office after | the 1st of January, 1906, and surplus | now on deposit belonging to the bond. l holders which will remain after paying | the coupons ef the bonds of 1881 fall | nE due January 1st. 1906. feel al- | most certain that the resources of the | rust mentioned above will be ample | .o meet the interest upon your bonds | IS the same accrues between January | !, 1908 and an adjustment of tho mat l er by the issuance Of new bonds and | Inc settlement or exchange of the old ponds. I think that YOU may rest ss- ,urel that your bonds are amply se- ,ured and will be paid In full with ln- crest
 Neither the Le9isIature nor the City ,f Mobile has Indicated any disposition whatever not to provide In the fullest rethod for the protection of this in lehte10ess, and the not under which ,our hori1s we've 's~red created liens ,poo wharvcs and other prnnertV, and n exnre es terms made the act "a con- -act between the Co--unfse'oners Of FonfIo fully errpowcrc6 Nv +h's act and ha hOl1rrs of hon1~ nd cNuno1s is- ued under it" ot~ ard TO resolution ! ,r enac'r047t of Tho Lccfz'ature or mu- 'irioaI hodv could denrive the bond loldors Of the benefit 1f the provisions f that act even is the Legislature rd the c'tV aHth0rities both desire to .ccorrI'sN th"t rurnose.
 The C'itv cF Mobile has 2 h0ne'ul fu- ure, The incrnase of rr0speritv and ,rowth oS nonu'ation in the last few ears indi "a'es that the Citv Of Mobile will he i0 better shane hereafter than yer before to meet it's ohIi@9- tors. and the local holders of these vrrft