The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-02-26
SECURITIES TAXABLE OR NOT.
QUESTION of INTEREST TO LOAN
ASSOCIATIONS.


Argument Before the Superior Court
in the Injunction Suit of the Geor-
Eia State Building and Loan Assoc
citation TO Prevent the City From
Taxing Its securitIes-AttOrneys
Tiedeman and saussy Hold That
Securities Are Exempt-CIty Attor-
ney Adams Holds That Such Ex-
emptiOn Is Unconstitutional.
Argument was begun yesterday before
Judge Falligant, in the Superior Court, In
the injunction case of the Georgia State
Building and Loan Association to restrain
the Mayor and aldermen of Savannah
from assessing for taxation the securities
held by the association. Mr.. ]. r. saussy,
Jr., opened the argument for the asso-
citation, and was followed by Mr.. Christie
pher q. Tiedeman of New York. MIR. s.
B. Adams argued the case for the city.
The hearing was continued at o'clock.
Mr.. saussy. ST., will conclude the argu-
ment for the association.
The case is of considerable Importance,
involving, as it does, the right of city
to tax the securities held by loan assoc
Citations in the general course of their
business. Should the city's contention be
upheld, the result would be far-reaching.
as not only large amount of securities
held by loan associations In Savannah
would be brought under taxation, but
every loan association in the state would
be subject to local taxation in a similar
manner.
Able arguments were made by attorneys
on both sides of the case. The position of
the attorneys for the association is that
the legislature has defined what is the
taxable property of loan association, and
has reserved to the state the exclusive
right to tax these associations, as 1t did
with the railroads under the act of 1874
and has denied to municipal corporations
the right to tax. The right to tax real
estate or other specific personal poperty
of the association is not involved In the
case, the only question at issue being the
assessment made by the city tax assessors
of the securities held by the association.
Mr.. Tiedeman held that such a tax as
that which the city is attempting to en-
force is really a tax on the franchises of
the corporation, and is within the prohibi-
tive power of the Legislature outside of
any exemption of tangible property under
the constitution of 1877. The act providing
for the taxation of building and loan as
sociatlons by the state and prohibiting
cities from imposing any tax upon these
corporations was certainly effectual, SO
far as the present attempt of the city to
enforce the tax at present assessed by IT,
he held.
Mr.. Tiedeman laid especial stress upon
the fact that taxation by the city of the
securities of the association would be dou-
bic taxation for the reason that the money
of the stockholders, the investment of
which is represented by these securities,
has been invested in real estate and I'M
provements. which are subject to taxation
and are undoubtedly taxed. 1t was also
argued by the attorneys for the association
that it would be unjust for the city of
Savannah to exact taxation upon an
amount of securities representing business
done. not only in the state outside Of Sa-
vannah, but in five different states. This
they held, would be interfering with bust
ness done in other states, and would
therefore, be contrary to the interstate
commerce act.
The city's side of the case was presented
by Mr.. Adams, who held that the act In
question, exemptiug the property of loan
associations from municipal and county
taxation, was unconstitutional, as under
the constitution of 1877 the legislature has
no right to exempt any property from tax
alton. BY the latest additions to the act
apparently not only the securities held by
the loan associations, but real and per-
sonal property, as well are exempt from
taxation. Mr. Adams held that this was
plainly unconstitutional. He held further.
that no exemption can be claimed in be-
half of any class of property. The argu-
ment will be resumed this week
The Georgia State Loan and Building AS
ISOLATION formerly made nominal return
of it's securities at $4,000. This was ac-
cepted by the city until last year, when
the tax assessors raised the assessment to
$250,0OO. The case is of interest to all loan
associations located in this state.
The clerk Of the City Court has received
the remittur of the Supreme Court. af-
firming the decision of the lower court in
the case of L. E. Stiltz G. Bro. VS.. w. e.
Wimpy.
A motion for a new trial for Trennell Ell
lis was filed by ]. H. Kinckle attorney
for Ellis. Ellis Is the negro who was re-
Gently convicted in the City Court on
three counts on the charge of cohabtation
with white woman, and was sentenced
to pay a fine OF 81 900 or twelve months on
the gang on each count.
Mr.. ]. S. Clay was appointed a CONNER
cial notary public by Judge Falligant.
-s-c-S
SISTER BERCHNIANS' FUNERAL