The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-03-31
SAYS IT'S UNCONSTITUTIONAL.
UDcE FALLTG ANTS DECISION IN
loan ASSOCIATION TAX CASE.

no.Iares the Act of Legislature Ex-
uniting Certain Funds of Loan
md Building Associations From
ToxatiOn, InvaIid-The Case of the
Georgia State Association Against
mo CITY Decided-WiH BE Taken
40 the supreme Court-If the De-
a,siop Is Upheld Their Large
uoIdingx Throughout the State
viii Be Affected.
decision, which, If upheld by the Su-
,rene Court, will spread CONSERVATION
arconr the building and loan associations
~ the state and incidentally add greatly
II The tax returns made to the county
o,a municipal corporations, was rendered
~. Tpdge Falligant in the Superior Court
yesterday. The decision Is in the case OF
me Georgia state Building and Loan As
location against the Mayor and aldermen
Of the city of Savannah, and is a sweep
inc afffrmation of the position taken by the
city.
The facts in the case are briefly these:
The Georgia State Building and Loan As
soeation returned for taxation by the city
ts capital loaned on securities to share-
holders at $4,000. This valuation was un>
satisfactory to the board of tax assessors
Il and receivers and it increased the valua-
ZION to $250OO0. The association refused
n nav the taxes on this valuation, and
the city levied tax fl fas. on the COM
pany's real and personal property. The
association then applied to the Superior
Court for a temporary and permanent in
junction and Judge Falligant granted a
restraining order, to be in force until the
matter could be inquired into.
i The case was argued more than a month
4 ago the loan associa ton being represent
Cd bv Messrs. Saussy & Saussy of this
city. and by Mr.. Christopher G.. Tiedeman
4 Of New York, and the city by Mr.. S. B.
Adams city attorney. The contention of
the association was that it's funds that
H had been loaned to shareholders upon
4 mortgage or other security were exempted
from either state, county or municipal
taxation by the act of the legislature,
regulating the imposition of taxes in this
j state. Mr. Adams urged, on the other
i hand, that the constitution provided that
there sheuld be no tax exemptions, and
4 that this act, therefore, was unconsutu-
tona and void.
The section of the tax law that was the
basis of the question in dispute is as fol-
4 lows: BE it further enacted by the au-
\ thory aforesaid, That the president of
all building and loan associations or other
associations of like character shall be re-
4 CURED to return to the tax receiver of
the county where such associations are
located, at its true market value, the
stock of the associations owned by the
stockholders thereof upon which, as
shown by the books of such associations,
10 advances have been made or money
borrowed thereon by the individual stock
holders therein) to be taxed as other mon
eyed capital in the hands of private in
diyiduas is taxed provided that no tax
snail be required of building and loan as
socauons to be paid upon any portion
oil thelr capital which has been loaped or
advanced to stakeholder upon real es-
tate upon which real estate tax is pay-
able by such Shareholders; and provided
lufther, that the taxes required by this
secuon shall be in lieu of all other taxes
ana ileenses whether state, county or
MUNICIPAL, against said association ex-
cfpl business license by the town or
ely IN which the principal office of any
suen association is located, and except
us lee required to be paid the state
treasurer by the act approved Oct 10, 1891"
Inc decision OF Judge Falligant declares
"'' act 10 be unconstitutional The de-
cSioh Is neither argumentative nor ex-
Pahalory, but dispose of the case In a
r." prief words. The full text is as fol-
lows After hearing argument and care
.uAy considering the matter. the court
uel1g oil the opinion that the scheme of the
ayt rehed upon by the plaintiff is not con-
sNteh. with the constitution of the state.
ana that, therefore. the act is unconsti-
.ullohal and invalid, it is considered and
%usred that the prayer for a temporary
INJUNCTION be and the same is denied and
sle restraining order heretofore granted is
me case will be carried at once to the
supreme Court. If the decision Is affirmed
II Will be a blow to the building and loan
1Ssoclau lions of the state. If the decision
L maze that of the Supreme Court they
VIII De taxed to the full extent of their
roilIhgs' The objection that to tax both
teaI estate and the money loaned thereon
answered by those who espouse the
NY position by the claim that this is
ag course pursued in the case of individ-
oa.S VINO lend money secured by mortgage.
unu corporations should not be more ia