The Birmingham age-herald., 1911-06-07
M'DOWELL GIVES
 HIS OBJECTIONS Analyses Commission Plan
 for Bond Issue BAD BUSINESS PLAN Former Chairman of Council Finance Committee Thinks Commission
 CTS Not Entirely Frank in
 Their Statement

COmm1ttee lnlnkS COmm1SSlOn-
 CTS Not Entirely Frank in
 Their Statement
 In view Of the interest being taken in he bond issue for $1,9OO,000. as proposed " the commissioners of Greater Birmng- lam, M H. Mcdowell, former member if the city council and chairman of the inance committee of that body, was asked yesterday to give an opinion on the pro posed measure. MT. McDowel stated that le was reluctant to do so on account of lis previous connection with the city but his position as chairman of the finance committee naturally made aim familiar with the condition of the city's finances. In this connection it might be said that it was under his leadership that the greater city's tax assessment was equalized netting the city about $16O,- 100 annually. MT McDowen gave out the statement:
 My mind has not been made up as to the necessity for so large bond issue as nas been asked, nor do I think the com mission has been absolutely fair and rank in presenting their side to the pub ic. Of the maze of figures presented which, without critical study, befog in 'tead of enlighten, the actual deficit on July 1 will be found in round figures 800, 900. Public improvement bills payable md maturing city bonds cannot be con- idered since the one is secured by liens gainst the abutting property and the ther can be refunded.
 "The commissioners say that the esti- hated deficit as of December 1, 1911, will ,e $1, ,3OO,O 900. and a bond issue for that um would start them even with the vorld But they should have gone fur her and said that about s1,250,0oO in taxes nd licenses would be paid in December md January, and that this vast sum would be deposited in various favored 'anks to be drawn out one-twelfth each nonth, the people in the meantime pay ng interest on the whole sum.
 One Point Not Clear
 But one point not at all clear is his dificit. Let it be conceded that when Birmingham was first incorporat d it was free of debt and had money to 'un it a year. Of course, Birmingham las not been out of debt a minute ince it was 24 hours old, but the above will do no harm. When and where did this deficit start? One of the commissioners in an interview a few lays ago flippantly spoke of the old 'egime, but no details were given. Two If the commissioners have been the executive head of the city in times past. Mr. Exum for six months and MT. Lane or six years.
 personally, 1 know that every finan- ,ial measure advocated by MT. EXum was concurred in by the board, and my is that MT. Lane was equal ly fortunate or unfortunate. How much of this deficit is >chargeable to Mr. Exum in his six months? How much o Mayor OBrien in his IT months |? How much to Mayor Ward in his four 5ears? How much to Mayor Drennen Or six years. and Mayor Evans for .wo years Mayor VanHoose for two fears, Mayor Fox for two years and Mayor Lane for six years? Has there eaIly been an administration since the birth of Birmingham that did not bor- 'ow money anticipating taxes?
 AS business proposition. why is it necessary for the commissioners to lave the money on hand January l to pay every expense for that year? Es- why is 1t necessary since the act of having the money on hand Is costing the people per cent interest? What business corporation firm or in lividual ever adopted such policy? What city in the union has adopted 1t? Should the United States, and the sev- sral states, counties and cities uniform y adopt this policy there would not oe enough actual money in the nation 70 pay the bill. Then, why should Bir- ringham be an exception?
 My understanding is that commis sion government was to apply business methods to municipal affairs and since ,niy old and established methods will where Is the precedent? An other point where the commissioners do 1ot play fair in this statement. They .ay the taxes of 1912 are now pledged. The commi ssioners know that under the ,ld law city valuations were taken from he preceding years state assessment md that the legal fiction now employed was merely to get around a plain man. late of the constitution.
 "This policy was adopted by the city m November, 1910, and netted the city s122,000, simply making every part~of the city pay the same rate of taxation, and certainly the taxes for 1910 were not remitted. If so, where would the city be if the present law was replaced by the old?
 The Actual Deficit
 Again getting back to the actual figures, the city for the fiscal year July 1, 1910, to June 30, 1911, will show an actual deficit of approximately $500,- 900. Had they asked for this sum it should have been granted unanimously by the people. The commissioners es- innate 1t will require net sum of s497. 900 to pay expenses to December 1. Since the credit of the city is now so high that money can. be borrowed at 3& per cent, would it not be better 10 borrow this sum monthly so the peo- ple would have to pay interest on that sum at that rate for an average Of three months. rather than pay per cent for a full year on $S00,000.
 "The commissioners show nowhere low they will keep even, only prom se. Every board of aldermen elected n 40 years made the same promise. Certainly the figures published show To make the statement as ,ad as possible it says the actual deficit when the commissioners took charge vas $1026,234.74.' The estimated deficit December 1. 1911, s1,312,790.11. If .hese figures are true the commission acknowledges 1t is now creating a deficit at the rate of $45,000 a month The interest on their proposed bond ssue for bond and interest are twins) will make the monthly deficit approx