The Birmingham age-herald., 1903-01-22
Proposes a Privilege Tax On Corporations Doing Business
 In the State
STATE AUDITOR SOWELL
 DID MOST OF THE WORK
There Are Many Changes From the Old Bill, and the New Features Promise to Be Great Reve-
 nue Producers.

Montgomery January 2. = (Special) - An act to better provide for the revenue of the state was the most important one presented to the lower house. This bill Is known as the general revenue bill, and it was drawn by the commission authorized by the constitution, composed of the gov ernor. the auditor and the attorney gen. eral. The measure was offered by Chair man Simpson of the ways and means committee.
 The new measure is perhaps the most important to every citizen of the state that will be offered. The reduction in the tax rate ordered by the constitutional en- actment has rendered 1t necessary for the revenue committee to proceed with great care In the preparation of the new provider. The new bill Is, as a matter of course, largely the work Of State Auditor Sowell, MT. Sowell has carefully studied the situation. and was consequently in position to draft a very thorough meas ure. This he seems to have accomplished. with able assistance from his fellow members. and he has reason to feel a ''sorter pride In the bill," as he expressed 1t this morning.
 Many Changes in the Bill.
 There are many changes in the bill from the old one, and the two more im- portant, the auditor claims, are great rev. enue producers. First in importance Is a new provision for a stamp tax on all mortgages, notes, bonds, all instruments representing money loaned or other evi- dencess of debt This provision Is an att tempt to tax the mortgages of foreign concerns, which Is impossible under the provisions of the old law It Is argued that foreign corporations are enabled to lend money in this state at about two and thrty-seven and half per cent, cheaper than a state concern can lend it for the reason that the local corporation must pay its taxes. The new provisions for the stamp tax follow:
 Stamp Tax Provision.
 "Section 9. There shall be collected for the use of the state a privilege tax of ten cents per one hundred dollars or frac- tional part thereof. all notes, mort gages, bonds, all instruments represent ing money loaned other evidence of debt, which shall be collected at the time such notes, mortgages, bonds, instru- ments representing money loaned or collected, evidence of debt created or made as hereinafter provided; and no other tax shall be collected in this state on any note, mortgage, bond, in- strument representing money loaned, or other evidence of debt; provided, the provisions of this act shall not apply to open accounts due for merchandise or to notes, etc., given for the rent or hire of real estate or personal property; pro- vided further that 1t shall not exempt any corporation from other privilege taxes, nor shall 1t exempt from taxation the capital stock of banks, private or otherwise, or other corporations
 Section 10. The maker, payee or en- dorser of every note, mortgage, bond instrument representing money loaned or other evidence of debt, shall attach or cause to be attached to such notes, mort gages, bonds, instruments representing money loaned. or other evidence of bedt, a certificate, to be furnished by the state covering the amount of taxes due on such note, mortgage, bond, instrument repre- senting money loaned or other evidence of debt under the provisions of this act; said certificate to be canceled by the makers, showing the date of such cancel lation and the initials of the maker, or should the maker not be able to write. then by one of the witnesses. No instru- ment mentioned in this act shall be re- ceived for record in this state or receiv- ed as evidence in any court in this state until the provisions of this act are com piled with, and 1t shall be valid defense against the payment of any debt to prove that the certificate required was not at- tached and cancelled at the time of the execution of such instrument.
 Section H. The auditor, with the ap- proval Of the governor, shall provide a f the expense of the state, certificates of different denominations suitable for the intents and purposes of this act; such certificates shall be prepared as to prevent any counterfeit and shall be signed bv al treasurer, and shall be under the control and supervision of the auditor. If shall he the duty of the auditor to furnish the several judges of probate a supply of cer- tificates for their counties, and keen a record of same and the judges of probate shall be responsible, and account for all certificates furnished them as other monies for the state coming into their hands: they shall receive the same com pensation on certificates sold as they re- ceive on license money collected All monies collected under this act shall he covered into the treasury and a separate account kept of same.
 Section 12. The auditor is hereby au- thorized and empowered to appoint agents Gin addition to the judges of probate), in cities and towns or over 5000 inhabitants. such agents to give bond, amount to be fixed by the auditor and approved by the judge of probate. and filed with him. All agents appointed under this section shall receive 212 per cent on all certificates sold by them.
 Section 13 The provisions of this act shall not take effect until October. 1. 1903 and shall not effect the assessments of the year 1903 on solvent credits or money loaned"
 Other Important Changes.
 The other important change is a pro- 1-- kI.~ l. . rates of taxation." which says that "all