The Montgomery advertiser., 1907-05-05


 In your issue of April 26th the writ CT. then absent from Montgomery. noted an article under the caption Governor upholds tax on foreign money lenders" " Inasmuch as this subject Is one or grave import to every business Inter est in Alabama, l; as q private citizen after calm consideration of the sub ject. seek the privilege of your col umns to add my humble plea for re- peal of the law uRder discussion. I am if enforced as it now stands will do very much to retard our industrial growth and work a great hardship on every business enterprise, great CT small, industrial or otherwise. as well as on every farmer, wage earner and salaried man in the State.
 Not in the heat of argument, put to cite few facts in support of the above assertion, which 1 ask every thinking voter to carefully consider If any of then agree T ,Sn Tth ne ne ao their ee representatives in the House and Sen ate to demand in no uncertain terms that this recent enactment tSonn netGSpsGao GaS Sd ernor" that you want his support In having this enactment repealed, It appears that More criticism or or that any other portion of the state: ' What does that show? Birmingham, with its multitudinous enterprises al ready feels the pinch. nor VIII It pc pc long before every city and town In Alabama will have a like awakening. As to the facts:
 CD I wish first to say am a please to call me such-who, in the course of my business visits every coun- = tv in Alabama, making extensive pug EEalroads' Eg eatp? as well as as the larger towns even unto the Magic City of Birming g ham. My business is such as 10 throw me in contact with all classes or mer. . chants. with lawyers bankers ana. not not infrequently, with farmers. Therefore l feel that my knowledge of business conditions in Alabama at this time IS fairly well diversified.
 (2) After an early busness train ing of eight years in New York came to Alabama nine years ago 10 cast my lot in Montgomery Nesdless sio to o,9 recorH orH and the Alabama of today are so far ahead of what they then were that a word comparison would be difncHst, tso banking world, in the financial anu m dustrial growth of both city and state In 1898 the big foriegn loan compa- unknown within our borders had not | at that period to much extent become | active factors in our business lttei these companies loaned money then al | edged real estate security but were not aggressive competitors of the banks | At that time commerclal paper VI tne | best class was freely discounted at the | rate of twelve per cent per annum hy l every bank in this. your Capltal Clty | and we all know the farmer nad 10 pay l even higher rates banks did not then | cater to farm loans as they now do | that class borrowed from advance mer. chants who, of course. made a profii on what cost them twelve per cent. Late in 1899 or early in 1900 one oi the biggest foreign loan companies es- abolished an agency in Montgomery lands in Alabama at. sever. percent" | then others came and, gradually the rate went down until six per cent loans became general and five per cent not duced rates to the legal eight per cent on average good commercial papers or | fered for discount. For the past six or seven years, until the entrance, oi l this eventfuI year of 1907 money has been abundantly plentiful at low rates | and on long time for anyone who had under the new law? Less than nine ty days have elapsed since it's pas | sage and I ask you to observe the diff l ference. Here are a few cases worthy
 GD A recently published interview with Senator Teasley of Montgomery county, cited the refusal of a. New York Insurance Company, to confirm 2 loan of half a million dollars on a pro | jected hotel property in the very heart of Birmingham although they hat l agreed Iu make lUe lOdn IONiubu cal conditions were satisfactory. | Wherein were local conditions" un- satisfactory? Simply in that the isu' | rance company could see no reason why 1t should pay a premium to loar its money in Alabama. Can you blame them?
 CD In January last the writer wa: asked bya personal friend who Is ma
 teriaIly interested in an Alabama in | dustrial concern of high standing tc | negotiate a loan of $125.000 with frs | mortgage on three modern plants a! security. This concern did not owe
 dollar past due to anyone; it's entire output was sold at a good profit fol
 more than twelve months in advance | tn security offered was gilt edged anC l conservatively worth four for one al collateral; the money was desired sole | ly to increase the output; terms prof
 fered being first mortgage six per cen l bonds payable one-half in ten one-hal 1 fin fifteen years. This proposition wa | submitted by me to an old persona | friend of mine, one of the most prom
 lnent and we'll known promoters il
 New York. Ordinarily he would hav'
 Bumped at it;' six per cent invest
 ments of this class look good an'
 the answer came back. Alabama con l ditfons unfavorable for investors. Ru | mored Legislation prevents considera
 tion of your proposition" and the pas
 sage of this particular law finally set
 CS.6 Within the past two weeks. ol
 to-wit April 20. in the regular pursui
 of my business I called on a custome | of the company I travel for. He owe