The morning news. [volume] (Savannah, Ga.) 1887-1900, 1898-09-05
CITY ENJ0lNED FROM LEVYlNG.
CITY ASSESSORS RAISED A RETURN
TO s25O,OOO.

Georgia state Building and Loan As
Taxes on That AmOunt-CIaims Ex-
emptiOn Under the General Tax
Act of 1894 - Had "A Compromise
Agreement With the City for Four
Years Under which Its Return Was
About So, 900 - Case TO he Heard
Before Judge FaIIisant.
Judge Falligant has granted a tempo
rary injunction restraining the city from
levying upon the property for the Georgia
State Building and Loan Association for
taxes until the points of difference be-
tween the parties can be determined.
The temporary restraining order was
signed at Judge FalIiganfs house Satur-
day night. The city tax assessors recent
ly determined to assess the association to
the extent of $25O,O0O on its mortgages and
liens. The association has taken excep-
ton to this heavy assessment, and claims
rights under an act of the legislature pass
cd in 1884, which, it says, will exempt
1t from this heavy taxation.
The act of 1894 provides that all build
MS am AOdAl u0SOtidLAoAlS III TIE SldlS S4l1i
return to the state and county for taxa
ton their unborrowed stock or capital not
advanced to shareholders on real estate 1t
also provides that this taxation shall ex-
empt them from all other taxes, state,
county and municipal, except a license tax
in the city, in which their principal office
is located. and tax on their office furni-
ture and real estate actually held by them,
From 1894 to 1898 the Georgia State Build
ing and Loan Association had a COM
promise agreement with the city under
which the association was assessed at
about $25 900. The return for 1898 was ST.
eco, and the association would have paid
taxes on that amount without a MUIR
muir.
The present board of tax assessors de-
clined to accept the return on the COM
promise basis and increased the assess
ment to $250,000 on the mortgages and liens
held by the association. The association
then concluded to test the question, and
declined to pay the tax on that assessment,
paying the tax only on it's Office furniture
and real estate actually held by it.
W AiSA AiiC ASSOCIATION OGClAiiCh W pay
the tax the city marshal Mr.. John Pow
er, levied an execution against it, upon its
office furniture and real estate. This was
one of the necessary steps in making a
test case of the matter.
The association claims that the efforts
of the city to tax its mortgages and liens
is tantamount 10 taxing its capital since
the mortgages represent the capital that
has been loaned out to the shareholders
on security. The association also claims
that the city, under its charter has no
power TO tax franchises, and if it had
such power to tax franchises and mort
cages, that power was abridged and sus-
pended by the act of 1894, which reserved
the right to tax building and loan associa-
lions TO the state alone.
1t is understood that the claim of the city
will be that the power having been given
it to tax stock in monled corporations, any
act abridging this power without special,
reference TO the charter of the city OF
Savannah would be unconstitutional IL
may also be claimed that under the consti-
tuition there can be no exemptions from
taxation other than those specified in the
constitution, and that the general tax act
in so far as it attempts to restrict the tax
alton by a municipal corporation is viola
tive of the constitutional provisions as to
exemptions.
The levy upon the property of the Geor-
gia State Building and Loan Association
under the execution was one of the ini-
tial steps in making test case. The assoc
citation now comes forward and protests
against this levy in its suit filed in the
Superior Court.
The petition sets forth the facts stated.
1t was filed by Mr.. j. r. Saussy, Jr., rep
resenting the association, and asks that an
injunction preventing the city from col
lecting the taxes claimed on an assessment
of $250,0O0, be issued The matter al is
sue is purely a question of law as the
facts are alp agreed upon. 1t was consid-
cred best. therefore. TO test the case by
an equity petition
The amount involved In this particular
proceeding is about $3.50, which would
be the tax ON the assessments as fixed by
the city authorities. This is worth fighting
for, and the determination of the case viii
be awaited with much interest. In addi-
ton to. this the case win be one of much
interest to building and loan associations
generally, as questions are involved which
win likely be heard from again in other
parts of the state
Judge Fal9igant granted the temporary
injunction preventing the sale of the prop
erty under the execution, and set the case
for hearing as to permanent injunction
on Sept. IA.