The Birmingham age-herald., 1911-09-07
EXPLANATIONS BY THE COMMISSION
  Reduction of Bond Issue to
 $1,0O0,000
DUE TO FISCAL YEAR
Issue Is Good Only on 1ndebt edness of City up to September 20, the Close of the
 Fiscal Year

l hVU, lHe three tbAlAit4sSlpitOAS @NN'NN@ gave out three individual opinions and l explanations.
 1 The statements are unique In the fact that this is the first time that prop osition has been brought up of such va riety of interpretations as to demand separate personally written explana- ! ton from the three commissioners. 1 In addition to being unwilling for the reduction to pass without full | explanation to the people of Birming- | ham the commissioners feared that d l statement to the effect that the city l would get along as well without the l S300,00 inasmuch as the city could not get il. might be literally construed.
 Exum Explains
 President Culpepper Exub, who has been snreienting in his strict atten- ton to the negotiations, made this statement:
 Tn reference to reduction In amount of bond issue, the question Is really one of a legal nature. We figured our deficit up to December l, which was the amount voted, Sl,300, 900. It seems that from legal point of view, no def icit accruing beyond our fiscal year, l which ends September 30. could be con sidered.
 50 deducting the deficiency which would have been brought about by the general running expenses for October | and November, it leaves a deficit up to | September 30 of more than s1,000, ,000 and the commissioners thought it wise to fix the issue at $1,000,000 even. ''In OthaF narfRctlI correct in our calculations when We l asked for $l,900, 600, and as stated, we have made the change entirely on ac- count of the legal point involved. After l the issuance of these bonds of s1,00o,000 the city will still be about s90o00o be- i hind on December l, less any specia | revenues that we may receive before that time, While l disappointed WI did not .get the full issue asked. stil l am of the opinion that we will be abl' to move along with the citys financia affairs in a satisfactory manner
 Weatherly's Statement
 Commissioner James Weatherly admit. in his statement that the city will b, enabled to bring the expenditures within the income. He adds that with liquo revenues the city will be fully able [, keep the pledge.
 His statement follows:
 The reduction made at the inStanc. of our New York attorneys of $500 Oo from the proposed bond issue of $1,300 600 was not caused by any error or mis take in the estimates of the amoun needed to cover the deficiency In thu city's revenues. but was caused by tht l legal construction put upon the statute l under which the bonds were authorized l The statute gives authority to the 1 city to issue bonds after election held authorizing it, to provide for the payment of any deficiencies in the reve- I nues, also to take up floating indebted ness Of the city. The construction the l bond attorney put upon this language was that we could include in any defi- ciencies in the revenues. in addition t0 | existing indebtedness and indebtedness to accrue during the current fiscal year. such other indebtedness or obligations 1 as would certainly accrue prior to the time when the next years tax receipts would begin to come in, which time we fixed at December 1. 1911. The New York lawyers were of the 1 opinion that the clause any deficiency in the revenue could not be properly extended so as to include indebtedness or obligations to mature after Septem- | Der 30 1911, which was the last day of 1 the city taX year.
 This construction of the statute l necessarily l1luIlou tHe Clly lO tHt amount of the indebtedness or revenue deficiency accuring or to accrue with the current fiscal year which was as certained to be S1 100000. l As to the effect of this action or | the market value of the bonds. it should be advantageous rather than otherwise | especially when taken into considera- tion with the recent election, authoriz- ing the sale of liquor in this county ant l ni ha r m Srr,tf q After the most scrupulous and rigit examination the SHOOK, 900 issue has been passed on favorably by attorneys whose opinion is accepted withou question in financial circles all over ths 1 United States. Incidentally 1t may bt added that these attorneys passed ia | vorably on the validity of the act es- tablishing the commission governmen, for Birmingham.
 Furthermore investors will be bound to take note of the fact that the com mission is absolutely pledged to bring | the expenses of the city within the rev enues, and that with the additional rev enue to be obtained from liquor H. censes, the city will be amply able tt fulfill this pledge"
 Judge Lanes Views
 The statement of Commissioner Lane 1 follows
 T am glad the delays are over, bu the ultimate result as to $1,0000O0 wa, | fully, anticipated by me. Of course, I an disappointed as to the 1900, 900 disa pproved | because it was to cover deficiencies oc ! curing in October and November. An, l one knows that the taxes collected II those two months will fall far short 0 l the necessary expenditures in a city liS this
 ''The $300.0OO will be sorely missed b, the commissioners in their efforts l. bring the expenditures of the city within it's income. The increase of licenses wa taken into account when we asked for bond issue of $1, ,300,000. l thought then and I think now, that said last name sum was not one copper too much fo the city's requirements
 |. "Of course we can skimp and foreg many expenditures essential to the city purposes and development just as a ma could pass through the winter if nee essary without coat"
 Resolution Adopted
 In connection with the bond issue tn following resolution was adopted yes terday:
 "Be 1t resolved by the board of com missioners of the city of Birmingham as follows
 Section That sealed bids for tn sale of the issue of $1,000.000 of fundin bonds of the city of Birmingham d lieu of the proposed $1.so.O00 issue o deficiency bonds) will be opened by thi