The Birmingham age-herald., 1911-09-28
PARKER FAVORS
 A TAX INCREASE Also Supports Increase in
 Phone Rates DUE TO CITY'S GROWTH Asserts Weatherly Is Right-"More Business Means Less Net Earn ings" May Sound Absurd But
 Is Sound Logic
DUE TO CITY'S GROWTH

In statement issued yesterday Pres'- dent John l.. Parker of the Board of Trade, officially representing that body of business men, came to the support of Commissioner James Weatherly that the tax rate of Birmingham must be in- creased. He also favors the Bell Tele- phone company's request for an increase providing that company and the Peoples Telephone company form a merger.
 Commissioner Weatherly is right in suggesting constitutional amendment providing for an increase of the tax rate of Birmingham to one and one-half per cent. An adequate tax rate is necessary for a growing city. The increase in tax values themselves call for a higher de- gree of efficiency in administration-bet- ter police and fire protection, etc.-whlle the growth of population carries with it the demand for an enlarged sanitary sys- tenn and supervision, more schools. and other provisions for the health and well fare of the people. The outlying and sparsey settled districts cannot be de- nied their pro rata of improvements and administration, and. here is where much of the increased expense comes in. The extension of the radius of action invariably requires more power at the center.
 "In 1S91-twenty years ago-Birming ham had a total taxable valuation of about s10,OO0O GOO, and tax rate of one half of one per cent. The city was then much smaller in area and the standards of municipal service and of living gen. orally were by no means as exacting as they are today. The income from taxes at that time and under those con- ditions and as administered by Judge Lane, now one of the commissioners, was more adequate than our income from s65 0oo, GOO of taxable values this year on the assessment of one per cent. l be- lieve anyone who is familiar with the two periods will concur in this state ment. At the same time property is much more valuable in Birmingham, and the higher tax rate while still insufficient, is one of the reasons therefor.
 Ut is law of growth that all in crease not only creates more energy but necessitates the expenditure of more energy, whether that be expressed in money or other forms. The conten- tion of the telephone company that the expansion of it's system has resulted in greater expenditures with a conse quent dminuition of the profits of op- eration, Is analogous to the case of the city and is logically sound, think, however absurd the propositoin that
 more business means less net earnings may appear on it's face: and as so- lution I beg to recommend that Bir- mingham be given a one phone serv- ice thereby decreasing the actual cost of phone service to it's merchants and at the same time giving greater effi- ciency. The best evidence to me that the telephone company feels Justified in asking for an increase of rates Is that the reason given is not in accord with the popular idea and was frank ly stated In face of the fact that the company has competition. The motive of all acts of moral courage is a sense of right and I am willing to accept this reason why of the company as a guarantee that we will get the high CT degree of efficiency promised if the increase Is allowed. We are simply asked to pay little more for a better article and in our private life we often find 1t Is sound economy to do this. The chief value of a telephone is its instantaneous and it's continuous avail ability and If the company uses its additional income to give us exemption as far as possible from interruptions of service, physical or otherwise, we will have made a good trade.
 "The Birmingham newspapers are another illustration of the fact that growth of business is attended by a large increase in operating expenses In the past 10 years the circulation and advertising patronage of each of these papers has probably increased 500 per cent, and yet the publishers are period ically raising rates, not only on ac- count of added value to the advertiser, they say, but because their operating expense is continually becoming heav- fer. It would seem that if any Bir- mingham daily attempted to do busi- ness now on the basis of rates in effect 10 years ago it would speedily become bankrupt JOHN l., PARKER,
 President Birmingham Board of
 Trade"