The Alabama legislature passed the Cater Act in 1949, allowing cities and counties to set up industrial development boards (IDB) to issue municipal bonds as incentives to attract new industry into their local areas. The city of Mobile did not establish a Cater Act board until 1962. George E. McNally, Mobile's first Republican mayor since Reconstruction, was the driving force behind the founding of the IDB. The Mobile Area Chamber of Commerce, believing its members were better qualified to attract new businesses and industry to the area, considered the new IDB as a serious rival. After several years of political squabbling, the Chamber of Commerce emerged victorious. While McNally's IDB prompted the Chamber of Commerce to become more proactive in attracting new industry, the chamber effectively shut Mobile city government out of economic development decisions.Bill Patterson, "The Founding of the Industrial Development Board of the City of Mobile: The Port City's Reluctant Use of Subsidies", Gulf South Historical Review 2000 15(2): 21–40,
tHe AlabAmA LegislatuRE passED tHe cAter acT iN 1949, aLlOwinG CiTieS and coUntieS To sET uP iNDusTriaL deVeLoPMent bOARdS (idb) to issue municIpal bonDS As inceNTiVes to Attract nEw induStry into theiR Local arEas. the CitY Of mobIle Did NoT eStabliSH a CaTer aCT boaRd until 1962. GEoRge E. MCnAlLY, mObILe'S FirsT republicaN mayor sincE rEcOnsTruCtion, was tHe driviNg force BEHiND THe fOundIng oF the IDB. the mOBIle arEa chamBER of coMmErcE, believing its memberS WERe BetteR quAlifiED TO attrACt new BuSInEsSeS aND industry to the area, COnSideRed ThE NEw Idb aS a serIous rIval. AFTeR SEveral yEars OF pOlItiCaL sqUabblIng, tHe chaMBEr oF Commerce emerged vicToRIous. WhIlE mCnally's idb prompteD the chamber of coMmercE to bEcoME MoRe ProaCtive IN AttractIng New IndustrY, tHe chAmbEr eFFeCtiVelY Shut mobIle city gOvernmENT OUt Of econOmic developMent deCisioNS.BiLl patTerSOn, "the FouNdinG of tHE IndUStRIal developmeNt BoARd of the city OF Mobile: THe poRT CiTy's ReLuctaNt uSE oF subsidieS", guLf sOuTh histOriCAl REview 2000 15(2): 21–40,