The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1923-06-01
SCOUTS ARGUMENT
LEASE NECESSARY
TO PROVIDE FUNDS
Junior Chamber Report Shows
State Could Increase
Its Expenses

+ The state of Alabama could do
away with the convict lease system
as it now exists, increase expendi-
lures during the present administra-
ton to the extent of $500, 900, and
still be within its budget. according
to figures compiled in a statistical
report by a Junior Chamber of Com
merce committee, making a study
Of the lease system with special ref
erence to the financial aspects of the
problem. Irving NJ Engel is chair
man.
Few Defenders.
The committee report declared
that few II any people had been
found to defend the convict lease
system. and that the argument that
the state was in need of the profits
of the lease system for the defraying
Of expenditures had no foundation of
truth. That part of the report deal
ing with the actual financial status
of the state. and the effect of aboli-
ton of the lease system is as fol-
lows:
We find that during the last
administration. from 1919 to 1922,
inclusive. the total receipts OF
the treasury amounted to $40
6S9476.71, while the disburse-
ments were. s4L656,04s.03, leav-
ing a surplus of receipts over
disbursements of more than ST.
100000. 1t should be noted that
the disbursements include $780,
600 paid to retire bonds of the
state and 100000 paid for the
construction of new buildings
In other words, the total excess
of receipts. over operating ex-
penses, was not more than So
100000. 1t follows that if the
receipts were unchanged. the
state could increase its expendi-
lures during the next four years
by five and half million dol
lars and still be within it's bud
get AS matter of fact, the
income of the state will be en-
larged. The Legislature has al
ready passed the gasoline tax
bill levying a tax of 2 cents on
the state. One cent of this tax
goes to the general fund of the
state.
$5OO,oOO Yearly.
This will amount to at least
100000 a year, making total
for the four years of two million
dollars. 1t is probable. also. that
an additional three-mill genera!
tax will be levied by. constitu-
result in additional revenue of at
least SS,500,00O Consolidating
all these items, it appears.
therefore, that during the next
four years, the revenue of the
state will exceed the expendi-
lures for the last four years
by more than eleven million dol
lars The loss of revenue which
would result from the abolition
of the convict lease system VIII
not exceed 100000 per year, or
100000 for the four years. In
other words, the state could do
away with the lease system. pass
the three-mill tax, increase its
expenditures during the present
administration by nine million
budget. If the three mill tax
failed to pass, there 'wiuld still
be a margin of five and half
million dollars after the leases
are abrogated.
1t should be noted that these
figures do not take into account
any increase in taxes due to en-
hancement in the value of tax
able property in the state and
due also to an increase in the
consumption of gasoline in the
state.
The committee does not feel
that financial consideration
should be controlling in settling
question of this kind. Even.
however when We consider the
fiscal aspects of the problem,
we find that the states finances
are in splendid shape and that
the loss of paltry half million
dollars per year will not result
in curtailirg any of the states
activities.
o O O
Appeal For Funds.
An appeal for funds for the car
rying on of the fight against the
convict lease system was issued
Thursday by Judge William 2. Fort
as chairman of the financial COM
mittee