The morning news. [volume] (Savannah, Ga.) 1887-1900, 1900-02-25
MAY EXERCISE DISCRETION.
CORPORATIONS NEED NOT BE DRIV-
EN- TO THE WALL BY TAXES.

Controller General Wright Suggests
That the Corporations Affected by
the Recent Decision of the SUI
preme Court Take Up the Matter
of Back Taxes with the Tax Col
IectOrs and County Commissioners.
Tax Digest Cannot BE Rcopened 10
Wake Returns-NOt Many savannah
Concerns Affected by the Tax De-
cision.
Messrs. j. r. Saussy, II. A. Crane and
G. w. Tiedeman returned yesterday
morning from Atlanta, where they at
tended a conference called by ConHoiler
General Wright to discuss the effect of
The recent decision of the Supreme Court
IN the case of the Georgia State Building
and Loan Association of Savannah
against the Mayor and Aldermen.
AS already stated in the Morning News
the decision is far reaching one and
not only requires all corporations doing
business in the state to return their capt.
tai stock a. it's full value but makes
them liable for back taxes for failure to
make such returns in previous years. The
corporations have accepted the situation
so far as taxes for the future are con-
cerned. In fact, there is nothing for them
to do but to make their returns hereafter
as required by law
1t is the question of back taxes which
is now receiving their serious considera-
ton. There seems to be no limit to the
period for which these back taxes can be
collected, except the constitution of 1877,
and as the law stands at present, taken
IN conjunction with the recent decision of
the Supreme Court, corporation which
has not made returns can be required to
pay back taxes for every year back to
1877, if they have been in business that
long. Some of the larger corporations, like
the Georgia State Building and Loan As
ISOLATION, are protected by reason of the
fact of having made partial returns dur
ing the past years of their existence.
These returns having been accepted by
the receivers the companies are not liza Bile
for further taxes for those years. This
point was raised in the conference Friday
and both Controller General Wright and
Attorney General Terrell, who was also
present, stated that the acceptance of
these previous returns by the proper au-
thorities relieved the companies of any
further liability for these years.
Mr.. Crane represented the local banking
interests at the conference and learned
that the banks are not in any way al
fected by the decision of the court. They
are already required to return their cap
ital stock at its full market value and any
further taxation would be a hardship up
on them. The practical effect of the de-
clsion is TO place the building and loan
and other corporations upon the same
footing in the matter of taxes as the
banks by requiring them to return the full
amount of their capital stock, instead of
simply returning that portion of the stock
upon which no money had been borrowed
as has heretofore been the rule
Messrs. Crane and Saussy, who were
seen yesterday, said that the questions
raised by the decision of the Supreme
Court were discussed for several hours,
but without any decisive conclusion be-
ing reached. 1t was agreed, however, as
the results of the conference, that the
heads of the corporations affected should
consult with the County Commissioners
and tax collectors of their several coun-
ties upon the question of back taxes. The
controller general stated that while he had
no authority to give any relief in the mat
ter, the county authorities would doubt
less use discretion in dealing with the
ques ton, as it would be poor policy to
crush out of existence companies, other
wise solvent concerns which are delin-
quents for large amounts of taxes through
no fault of their own.
The question of reopening the old tax
digests for the purpose of entering re-
turns for previous years was discussed,
but the Controller General said the digeStS
had been filed with the state archives, and
were no longer accessible for such a pur
pose. The companies which are in de-
fault ne stated VIII have to deal with the
tax collectors. as the matter has passed
out of the hands of the tax receivers. In
structions would shortly be issued 10 the
tax receivers, Controller General Wright
stated, as to the manner of receiving re-
turns for the present year.
Tho payment of back taxea for num-
Der of years might prove a very serious
thing for some of the companies which are
in arrears, but the probability is that the
| as TO the exercise of discretion by the
| county authorities win be taken advantage
| Of Not only building and loan associa-
tons, but express, telephone, telegraph
and other corporations are affected by the
decision. In the matter of back taxes
| these concerns are likely to be less af-
! fecled in Savannah than in some of the
! other cities of the state. The Southern
| Express Company has always made re-
! turns of IFS real and personal property
| here and the telephone and telegraph
| companies have also made regular
returns though not as full as those con-
iemplated by the decision.
/ II