The Birmingham age-herald., 1908-03-21
HAVE SUBURBAN DREAMS Of BOND
 ISSUES VAN|SHED2 Some Lawyers Believe Bir- mingham Does Not Have
 to Assume Them
WORDING OF THE STATUTE
 STOPS GOING INTO DEBT
Greater Birmingham Does Not Have To Take Over Obligations Made By Suburbs After Septem-
 Der 2, 1907.

Will Birmingham be liable for the in-
 debtedness, outside of street improve ments, contracted by the towns to be ab
 sorbed by Greater Birmingham from Sep
 tember ', 1907, until October l, 1909, when Greater Birmingham becomes a reality? According to number of lawyers the
 wording of section 1 of bill No. S02, as shown on page 913 of the General Acts, d907 which was approved August 13, 1907,
 relieves Birmingham of this obligation. The legislature adjourned August ', 1907. and this bill went into effect thirty days thereafter, making the date 1t was ef- fective September I, 1907 This section reads that the town which absorbs an- other must assume all the indebtedness
 of the absorbed town "at the time this
 set shall go into effect"
 If this act controls the situation then
 a problem is facing those towns which
 Greater Birmingham will absorb, for un-
 der it they can now contract no debts be-
 yond what they have the cash to pay for. An act approved March 5, 1907, and shown
 on page 295 of the General Acts of 1907,
 offsets this act as regards street improve
 ment indebtedness, which, of course, is
 borne by the abutting property owners.
 How the Law Reads.
 The act approved August 12, 1907, reads
 as follows:
 ITO regulate the administration of the affairs of any municipal corporation which
 has been absorbed. or its government ex- tinguished by the alteration or rear
 engagement of the boundary lines of an-
 other city or town:
 Section 1. That when any municipal cor poration has been absorbed or its govern ment extinguished by the alteration or encouragement of it's boundary lines the city or town so altering or rearranging it's boundary lines shall assume bonded in-
 debtedness and interest thereon, of every
 kind and character, when the same shall
 become due, that may have been lawfully contracted by the city or town so ab-
 sorbed, or whose government has been extinguished, and said city or town so al i tering or rearranging it's boundary lines shall assume all contracts for any muni-
 cipal improvements that may not be completed of this city or town so ab-
 
 l extinguished at the time this act shall | go into effect"
 Bonds Would Be Worthless. Under this the 100000 worth of bonds
 which North Birmingham officials are figuring on issuing for the construction of water works system and other things, l 1t is said, would not be worth the paper nf l bonds with which to construct a school l house would have the same relative value, 1 The purchase of fire fighting equipment or !, any other kind of equipment would be l regarded in the same way.
 1 While an act prohibiting the towns to l be absorbed from contracting any debt | which they can't pay before October l. 1 1909, may prove inconvenient, 1t is readily | seen that such an arrangement will be l much better for the credit of Greater Bir-
 mingham than If the outside towns were
 allowed to contract indebtedness promis- l cuonsly.
 | Since the Greater Birmingham election l of January 6 the towns to be absorbed | have been planning on how to improve l themselves by the building of school l houses, installation ot street lights and I like improvements Under this act, how
 ever, such dreams will vanish into thin | air. Even the indebtedness contracted since September. 1907, cannot be left for | Greater Birmingham to settle. l If the towns to be absorbed have such | an indebtedness which they can't meet 1 prior to October 1, 1909 can the Mayor 1 and Board of Aldermen be held person. | ally responsible?
 l Will this act have the effect of causing | these towns to annex to Birmingham at once instead of waiting year and q | half?