The weekly soliphone., 1915-03-26
THE BOND AMENDMENT.

vote of the people in the last gem
aral election failed of passage be-
capse if did not receive majority
of all the votes cast in the election
is doubtless a correct Interpretation
of the law, but regret over the fall-
ure of the amendment to become
mart of the constitution will none
the less be keen. In the general
election 1851 votes were cast.
OF this number 1929 expressed a
choice on the amendment, 54,7S2
voting for it's adoption and 40,441
voting against adoption. Forty
thousand two hundred and eighty
four voters failed to express their
preference on the measure. Under
the decision of the supreme court
the amendment needed $3.50 votes
to become a part of the constitution.
An analysis of the returns from
the election shows the amendment
was defeated by the rural vote, eth
er directly expressed against it. or
because the voters cared so little
about the measure that they did
not register their choice. Failure
to vote either way counted as
vote against the amendment.
1t is probable the people in the
country would have voted for the
amendment had they thoroughly I'M
derstood its provisions 1t was de-
signed only for the incorporated
towns and cities of the state and in
nowise affected the interests of the
rural population only in proportion
as they would have been benefited
by the steady growth and develop
ment of the towns and cities. The
measure was in a sense law to
emancipate the municipalities from
financial thraldom, to give them an
opportunity to wipe out old obliga-
tions that keep city scrip down to
fifty and sixty cents on the dollar,
by the issuance of long time bonds
rot to draw more than six per cent
interest, the bonds to be authorized
by a majority vote of the people and
to be paid for by a small special tax
levied on both real and personal
property. Once the cities are placed
upon a firm financial footing by Sc
curing release from oppressive in
debtedness that becomes more bur
densome as the years roll by, they
can operate practically upon a cash
basis The amendment expressly
stated no bonds could be issued for
any general Indebtedness incurred
after the adoption of this law, hence
its provisions in this respect could
not have encouraged waste and eX-
travagance in the management of
the cities.
Other provisions of the law sought
to give to the smaller cities and
towns equal advantages with the
larger cities in the matter of install
ing modern conveniences and utili-
ties, such as sewerage, waterWorks
and electric lights, authorizing bond
issues by a majority vote of the
people, not TO exceed twenty per
cent of the assessed valuation of the
property in the city, and not to
draw more than six per cent inter-
est in incorporated towns and cities
of the second class and not more
than five per cent in cities of the
first class.
Arkansas is one of the very few
states in the union where the mu-
inequalities are prohibited from is
suing bonds, and because of this
constitutional handicap the public
utilities now considered absolutely
essential to the protection of
health are denied many of the small
er towns. Bonds issued in the larg-
er towns and cities under the inn
provement district laws do not COM
mand as good price as is paid for
municipal bonds in other states
where the positive authority is con-
ferred by the constitution upon the
voters tC issue bonds. Our improve
ment district laws are a makeshift
and a subterfuge, designed, by
legal trick, to accomplish what the
constitution expressly forbids Out
side investors in municipal bonds do
not regard issues authorized under
the improvement district law as gilt
edge because of this constitutional
barrier
Believing amendment No. IA was
adopted the people in nearly a score
of Arkansas cities and towns had
called elections to vote bond issues
Tor waterworks, sewerage systems,
electric light plants and municipal
hospitals. Now that the amendment
is declared not adopted many OF
these much needed public improve
ments will perhaps be abandoned,
while in some towns and cities
where the assessed valuation of the
property justifies it the improve
ment district law will perhaps be
used
Another feature of the situation
that causes regret is that another
attempt cannot be made to pass this
amendment for three years The SUI
preme court has held that only
three constitutional amendments
NAV be submitted 10 the VoterS a