The morning news. [volume] (Savannah, Ga.) 1887-1900, 1900-01-29
DECISION is FAR-REACHING.
BUILDING AND LOAN CASE MAY AT
Feet OTHER CORPORATIONS.

Counsel for Georgia state Building
and Loan Company Cannot Outline
the COmpany's Plans Until tbe Full
Text of Supreme Court Decision
Has Been ConsuIted-The Com
pnny's Principal Office May He Re
moved EIsewhere-But Ii VIII Not
BE Run Out of BuSiness-R ailNay,
telegraph and Telephone COmpa-
mics May BE Forced to submit TO
County and city Taxation.
The decision of the Supreme Court af-
firmng that of Judge Faligant in the
case of the Georgia State Building and
Loan Association against the Mayor and
Aldermen of Savannah, established a
precedent of far-reaehing Importance in
the history of the taxation of corporations
in this state.
BY its terms that section of the law re-
lating TO the taxation of corporations of
this character by which it is declared
that the president shall return, at its mar
ket value the capital stock of the com
pany, upon which no advances have been
made to the shareholders, to the county
receiver of tax returns, and that the tax
es levied and collected upon this return
shall be in lieu of all others. whether state,
county or municipal, violates the consti-
tutional provision that all taxes shall be
uniform and ad va!orem and hence does
not relieve the companies. of the payment
of taxes to the cities, counties and state.
Mr.. ]. r. Saussy, of Saussy & Saussy.
counsel and attorney for the Georgia State
Building and Lean Association, was asked
by representative of the Morning News
TO state just how the decision would affect
the company and what course of action
would be pursued.
I'VE have reached no conclusion in the
matter" said Mr.. Saussy; nor will we be
in a position to do so until we have had
an opportunity to see and examine care
fully a copy of the full text of the Su-
preme Courts decision. l presume from
the announcement of the sense of the de-
cision contained in the head notes, that
the dec sion of Judge Falligant has been
fully sustained but l am unable to gather
from the mead notes on just what ground
the decision is based With the limited n-
forma ton before me, l have not been able
to understand just how the Supreme Court
recOncies this last decision with another
rendered some time ago. involving points
and questions of law closely analogous
to those involved in the case just decided.
The fun text Of the decision Will doubt
less clear up all confusion on this and
other allied points"
What does the company intend to 10
in case it transpires that the decision of
the Supreme Court is a sweeping one and
that the company will be required 10 pay
taxes on all its capital stock and other
property, whether the money which the
stock represents has been loaned to the
shareholders or not?" Mr.. Saussy was
asked.
why. in that event we shall have 20
grin and bear it, and pay the additional
taxes required. 1t won't run us out of
business by a good deal 1t may though,
make it necessary for us to remove our
principal office to some other city, or town,
or village, where the municipal taxes are
not so high, and maintain only branch
office in Savannah. L have no idea at
present whether this plan and course will
be followed or not"
THE only direct result that viii follow
the decision is That the companies will not
be in a position to lend money as cheap
as they have in the past The investors
in building and loan company stock. these
companies being purely mutual in their
character will have to bear the expense
of the additional burden of taxation"
The indirect results, though" said
Mr.. Saussy, If my present understand
ing of the meaning and scope of the de-
c'sion is the correct one, will be far
reaching indeed. The same scheme of
taxation as that applied to building and
loan companies has been followed in the
case of railroad and telegraph and tele-
phone companies. Practically identical
clauses control the question of these COM
raniss' exemption from county and mum
icipal taxation. 1t would seem to follow
from this that these corporations, that
in the past have paid all the taxes they
raid at all, except business tax, direct
ly into the treasury of the state would
be liable to taxation by the cities and
counties upon their capital and other
property"
1t will be remembered that both the city
of Savannah and the town OF Warsaw.
or Thunderbolt have already come to this
conclusion in regard to the street rail-
way company and that both municipal
corporations have suits pending, in which
the company seeks to resist the collection
of taxes upon it's trackage and rolling
stock. The suit filed by the company ask
ing an injunction restraining the city
from the collection of these taxes was
recently argued before Judge FaIligant.
and is now under advisement by him
FOR CHARITY SAKE.