The Birmingham age-herald., 1914-01-18
TOPUT MUNICIPAL
BONDS ON STRONGER
BASIS IN ALABAMA
Robert L. TOtten Writes to
Mayors of State About
Conditions Needing
Remedy Badly

Robert L. Totten has written a letter
which will be sent to mayors of all Ala
bama cities asking assistance in passing
a law in this state to put municipal Sc
curities upon a frmer basis. Mr. Totten
points out that bonds of Alabama towns
of from 1000 to 5000 population can seldom
be sold even at very substantial dis
count, which condition, he thinks, de-
mands remedy
Mr.. Totten also hopes to secure the CO.
operation of the Birmingham Chamber OF
Commerce and will take the matter up
with Sydney j. Bowie, chairman of the
legislative committee of that body, upon
his return to the city.
The letter which will be addressed to
Alabama mayors and which explains the
main points involved reads as follows:
Dear Sir: The laws of the state of
Alabama governing bond issues are a
heavy handicap to the development of the
municipalities of the state and seriously
affect the credit of those municipalities.
| want your interest and assistance both
officially and as public spirited citizen,
in an attempt to secure their revision
The bonds of an Alabama town Of
from 1000 to 5000 population can seldom
be sold, even at very substantial dis
count The bonds of a Georgia town OF
800 population are as good as of Atlanta,
gilt edged, in fact and are always sold
above par. The reason for this is plain.
Alabama laws have no provisions gov
erning' the payment of bonds and it is
practically optional with the officials,
whether they shall be paid or not
The Georgia law covering this point
reads as follows:
Any county, municsipal corporation or
political division of this state which shall
incur any bonded Indebtedness under the
provisions of this constitution SHALL on or
ebfore the time of so doing, provide for
the assessment and collection of an annual
tax sufficient in amount to pay the princi-
pal and interest of said debt within 80
years~of the date of the mourning of said
Indebtedness
AS the issue of bonds is limited to Z
per cent OF the assessed value of property
and the interest rate to 5 per cent per
annum, the maximum tax necessary to
carry out this provision would be 4 mills
or less than q cent.
IL we are TO secure the investment of
the capital necessary to the development
OF our state, we must create a favora BILE
impression on those contemplating such an
investment. You cannot expect to at
tract capital to your state and your vicin-
ity unless your town and the neighboring
ones are up-to-date and healthy places to
i've You cannot present an attractive
appearance without well macadamized or
paved streets, sidewalks, fire protection
street lights etc. No town that has pro-
gressed beyond the village stage can be
really healthy without pure water sup
ply and a sewerage system.
Our neighboring states are forging far
ahead in these matters. Why can't we?
Because our bonds are not marketable.
Will appreciate your writing me where
you stand on this question. Will you talk
this over with your leading citizens and
urge your representatives to join in pass
ing law removing this obstacle from the
progress of our state? Yours very truly,
"ROBT. L. TOTTEN."