Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-08-18

always be power to levy sufficient
amount to pay interest and principal.
County and District Laws.
What shall we say. however. II
your laws In Virginia which. not
only impose limit. but limit no
low that IL all the bonds you are
authorized by law to Issue shall be
Issued. II will be a physical impossi-
bility To collect sufficient taxes for
their payment? AS between your
county and district laws. the coun-
~ law is the better in this respect.
limiting the indebtedness to 10 per
cent of the assessed valuation. and
permitting the levy annually OF 80
per cent on the 800. OF this 30 cents
levy, large part is required to be
expended for maintenance OF roads.
cannot too heartily commend your
Legislature for requiring the mainte-
nance OF the roads upon which public
moneys are spent. But II reduces the
amount Of the tax which Is applicable
to principal and interest, and an easy
arithmctical computation shows the
insufiiciency OF the tax. But the
mag isterial district act is even worse.
for il authorizes bonds to the amount
OF 10 per cent OF the assessed valua-
ton and limits the tax to the same
maximum of 80 cents. All issues
OF bonds are alike in their claim upon
that limited tax. Do you wonder that
investors will not purchase your
bonds. Do you hope for any success
In this great project for lettering
your roads throughout the State. even
BY u State bond issue, IL your coun-
ties and districts are TO be left help
less in aiding that development? How
readily this difficulty may be entirely
removed by an amendment of these
laws authorizing dle levy OF sufficient
annual taxes for the payment Of prin-
cipal and interest.
Antiquities in Bond Laws.
May ] say word concerning the
antiquities which exist in many bond
laws. and which arc present In these
laws we arc considering? Certainty
OF meaning and certainty OF obliga-
tion are prime requisites in any law
authorizing public financing Do not
mako the mistake OF having your
laws carelcssiy drawn by those who
are not familiar with your local Sit
uation and with the demands of In
vcstors. Take for example, that pro-
vision OF your road district law.
which limits the amount OF debt to
Is per cent OF the assessed nluation
OF taxable property. Does that mean
10 per cent OF the assessed valuation
OF the property that may be taxed
for the payment Of the bonds. or of
all the property in the district which
is taxable for any purpose? Attor-
ncys are under doubt as to the mean
Ing of this limitation. particularly
because OF the statute for taxation Of
what Is known as intangible person
atty. the Limitation OF purposes for
| which such property may be taxed,
and the limitation upon the amount
Of any tax levied thereupOn. L ask
you TO avoid. In amending your laws,
such careless blunders as have oc-
Cured in providing that tho first
tax shall not be levied until after the
bonds have been actually issued, even
IL the bond election shall have been
held and the certainty OF the issu-
ance is apparent. In some cases this
has resulted In a years delay on the
actual issuance Of the bonds. II
must not be forgotten that the legali-
~ or public securities must be passed
| upon by attorneys recognized as ex-
perts in that branch of the law. be-
fore investors Will purchase them.
| There Is a bare handful of such at
torncy9. They devote practlcaily all
| Of their time to the one subject OF
public securities. and unless their
opinions are offered by the munich
| palities when il offers its bonds for
sale, they will be employed by the
purchasers who will condition their
bids upon the approval Of one OF them.
| and will not accept the bonds with
| out such approval. These attorneys
| cannot foresee what the decision Of
your courts will be In answering
these doubtful questions OF con-
struction. and in some cases they
have had to decline to approve bonds
| of your districts and counties, be-
| cause Of those doubts. 1t is possible
| to draft an act based upon tried
precedents and upon the decisions OF
the courts in such way as to leave
no doubt of its constiutionality. Many
| failures In both OF these respects
have witnessed myself.
| Gentlemen of the Virginia Good
| Roads Association, you who are bend
Ing your energies to build up n sys-
TEN Of highways that will be a credit
to your Commonwealth that will
| bring your farms and cities into that
| close relation that is to be so much
desired. that will put dollars into the
pockets Of your producers in saving
| the cost of their hauls, that will
Il