The Birmingham age-herald., 1913-06-28


proposed plan as the first step TO reform.
But 1t must not be overlooked that by
recommending the adoption by the state
OF the plan by which the sources of
state revenue and the sources of local
revenues be made separate, we do not
preclude ourselves from adopting later
the principle of the Virginia plan of
making the city and county completely
separate taxing districts, If it proves wise
TO do so. 1t is a defect and not virtue
of the Virginia plan that the cities and
state are left together. Witness their
desire expressed in a letter to your com
mittee for a more powerful state board
of equalization to equalize the taxes
throughout the state. Therefore, let us
not tie ourselves to their defect if we
wish to adopt their good point Let us
first get rid of the state taxes upon our
local property, and then consider whether
we want also to cut loose from the coun-
ty; which can be accurately determined
after we are relieved of the greater bur-
den.
"Of course, some plan may be devised
between now and the meeting of the next
legislature in 1915. which is better than
either of the plans discussed in this re-
port. If SO, none will be quicker to
support it than the members of this COM
mittee. But no reform plans have been
suggested so far except the separate
source plan adopted in five or six states,
and the plan of isolating the cities as
adopted in Virginia. Unless one or the
other of those reform plans is adopted
there seems nothing ahead of us but
to amend the constitution to let state,
county and city each increase the tax
rate upon our property, or to increase
the assessed value of it so that all there
will get as as much revenue as they
need.
'It will require all the time between
now and January, 1915 for a commission
If appointed by the governor, as we sug-
gest, to determine exactly how the sep
arate source plan of drawing taxes will
work out over Alabama. Your commit
tee has devoted many days of work
before forming the preliminary conclusion
submitted to you here. We have read
many reports from different states; we
have secured data from 10 cities; we have
corresponded with mayors. tax experts,
and officials from New England to Cal
ifornia; and upon the Virginia plan we
have examined the report of the Vir-
ginia tax commission; we have corre-
sponded with tax expert in Virginia;
with the secretary of state. and with
leading Richmond lawyer, and leading
Richmond newspaper man. And we have
secured the detailed tax statement from
the city clerk of Richmond
And on both plans we have almost
taken possession of the offices and books
of the Jefferson county officials. al
though fortunately a very active men,
Der of your committee is the county tax
collector himself.
I'm fine, we have not done hasty work,
and we ask of the chamber thoughtful
consideration before they adopt any
measures supported only by the data from
which we have drawn our conclusions.
Respectfully submitted,
'HENRY UPSON SIMS.
Chairman.
GEORGE B. TARRANT,
IS. l.. EARLE.
George Eusts, member of this COM
mittee, does not concur in this report.
and r. p. McDavid, the other member,
was not accessible for conference
Captain Boyd's Report
The report of Capt. Romdine Boyd
and George Eustis was as follows:
ITO the President and Members of the
Chamber of Commerce.
"Gentlemen-A brief consideration of
the finances of the city of Birmingham
will be suffic.ent to convince any cit
izen of the fact that the present rev.
enues of the city are greatly made
quate for the necessary expenses of
the city and that the adoption at the
earliest practicable time of some plan
for permanent relief is a matter of par
amount and pressing necessity.
THE undersigned members of the
committee on finance and taxation
therefore beg leave to file the follows
ing report;
I'm prescribing remedy we think it
is first in order to analyze or diagnose
the case, and this we have done with
the result that we find the main con-
triouting causes of the trouble to be
as follows, to-wit.
al. The excessive annual county
drains on Birmingham property.
"2. The excessive annual state drains
on Birmingham property
"3. The abnormally low city tax rate.
~. The abnormally large interest
bearing general bonded Indebtedness
of the city.
IS. The abnormally large city area as
compared to population.
THE city is already paying about 20
per cent of its entire revenues for in
terest, besides facing a necessary and
inevitable increase in it's general bonds
of at least a million dollars more be-
fore the constitutional amendment
herein contemplated can be made eff
fective, and the city comptroller estl-
mates the annual deficit in the an
neXed suburbs to exceed 100000, but
these conditions are now irremediable
and we shall therefore consider only
the first second and third grounds
above set out and suggest plan to
meet each condi ton.
Under the present state ana FEDERAL
laws the citizens of Birmingham are
taxed for the support of four separate
governments to-wit: The federal gov
eminent collects tariff duties on clothes
and other articles in. general and rev.
enue taxes on liquor and tobacco; the
state collects its property, license and
poll taxes the county collects its prop
erty and license taxes and out or what
is left the city collects it's property and
license taxes.
1T is obviously necessary there must
be both a national and state govern
ment and also one local government but
in the case of large cities it is equally
clear that there is no necessity what
ever for two sets of local officials. On
the contrary, experience has proven
that such a dual system is not only
suits in friction and a lack of cooper
alton and directly tends to lessened ef-
ficiency in the administration of local
affairs
Recognizing these plain economic
truths, the cities of Baltimore, Rich
mond, st. Louis, Denver, San Fran
cisco and numerous other cities, have
been created into combined city and
county governments, wholly separate
and independent of the surrounding
county.
The reasons which induced these
cities to seek such reforms apply with
peculiar force to Birmingham on ac-
count of the unusually large area of
Jefferson county, which is largely kept
up by taxes levied on property in Bir-
mingham. 1t is estimated that Bir-
mingham PAYS about two thirds of the