The Birmingham age-herald., 1915-03-20
Says Latter Erred in Regard to the Pending Bond
 Issue
WILL NOT INCREASE
 CITY INDEBTEDNESS
On Contrary Will Save Difference Be tween Interest on Bonds and Inter- est on City's Note-As to Preyi-
 Ous Issues-Need for Money

George Ward president of the city com mission, yesterday issued the following formal statement in reply to the lettec of Dr. C. P. Copeland, published in yes terday mornings Age-Herald:
 'Dr. c. P. Copeland, in your issue of the 18th. makes some statements about the pending bond issue, which are so inac- curate. they should be corrected.
 'Dr. Copeland says it will be necessary to raise our tax rate five mills on the dollar before the money could be real ized on these bonds' The fact is just tho reverse.
 This bond issue would not add one single dollar to the actual indebtedness of the city. It would merely fund tha. debt for period of 30 years and reduce the rate of interest. It will mean net saving to the city of the difference be- tween the interest paid on the bonds and that paid on the floating debt, But will not increase the indebtedness a penny. T. is a good business transaction on its merits from every standpoint
 'fThe question of raising the tax rate has nothing to do with the bond issue.
 He uutStion ol eQuhllZatloll mas DOtn- ing to do with the bond issue If taxes are eoualized. as they ought to be, and as the bill now in the legislature win provide for, this win not affect in any way the past due indebtedness. It will merely affect future revenues and future expenditures The past cannot be altered.
 Debt Must Be Paid
 hat ta, inL ta be increased or not, everybody must ad- init that the city's debts must be paid. and there is no way to pay it, except by Issuing bonds
 "Dr. Copeland is in error in regard to the bond issue.
 Tn 1905, during the aldermanic period, $4o0,000 of bonds was issued to pay for one-half of a sewer system.
 "In 19Oe during the same period, $350 900 was issued for new schoolhouses
 Tn 1910, during the same period, a bond issue of $400,000 was made to pay the immediate debts of the suburbs that past due obligations This was also voted and properly expended.
 The only commission bond issue was in 1911, when the people voted and author ized $1.soo,o00. The bond lawyers threw out $3O0,000 because this much of the debt had not matured previous to the date of the bond election, but fell due immedi- atery afterward.
 This situation placed the city at once s3cO,0oo behind after applying $l,0o0,O00 to the floating debt.
 Since that time the commission has attempted to run the city in a conserva- tive way, keeping up all functions. and at the same time practicing the strictest economy.
 "rhey met immediate demands for pro- 9ressive growth by buying equipment, real estate, schoolhouses, public improve ments, all for municipal purposes.
 People Have Property
 The people still have this property and are using it every day. They will have it 30 years from now when these pro- posed bonds mature
 The value of this property 90 years from now will be many many times the value of it's purchase price.
 The amount expended for actual prop critics amounts to something like $6S0, ,000 This added to the s300.000 that the com mission started out with as deficit makes $9S0,000 in the two items, and &C., counts for practically all the present deficit. Much of the remainder was made through necessary concessions to the cit izens of the different communities on ac- count of street improvements. which has been frequently and fully explained in the public press.
 Tt has accumulated a sinking fund that will take care of the bonds that begin to mature n 1917.
 The sinking fund will accumulate by 1922 about $1,300.00O, which will be suf- ficient to take care of all bonds maturing during that period.
 Tt is retiring every year some of the bonds issued by the former suburban municipalities and has been doing so
 "If the bonds now outstanding had not been issued, there would be no city of Birmingham today with its tremendous values.
 With the continuance of such policy for 90 years the great city that will have been built will more than compensate in enhancement all property owners for their initial investment"