The Birmingham age-herald., 1903-01-23
STAMP TAX FEATURE
 IS VERY UNPOPULAR

just, as 1t would amount to taxation of a special ciass-that is, those persons hav- ing occasion to issue negotiable paper.'
 T. H. Motion.
 T. II. Motion: "At glance am very much opposed to such a law. We have just gone through the experience of the nuisance of being required to put special stamps on documents such as notes, mort gages and deeds, and there was q general sigh of relief when the Spanish war tax stamp act was done away with.
 Tt seems to me that the back tax con- missioners ought to be sufficient to make the people pay taxes on notes and mort gages. As the law now stands there s such discrimination against residents of the state of Alabama that the only chance to get cheap money in the state Is to obtain it from nonresident corporations. whose business it Is to lend money in Alabama.
 "It has been my understanding that nonresident corporations have not been heretofore taxed on loans made In this state for the express purpose of encour- aging cheap money to come into the state.
 More money and cheap money is what
  this proposed legislation to tax non residents then I am opposed to the pro- position for the very reason stated
 While am not in favor of discrlm- mating against home people l think the state has been very greatly benefited by inducing loan companies to make loars at very low rates of interest"
 J. 3. Cobb.
 J. B. Cobbs president of the Alabama National bank: Tt appears to me that the revenue bill published in the Ago Herald this morning is something out cf the ordinary It is somewhat similar to the tax imposed by the government the object of which was to meet the enor- nous expense created by the war with Spain This tax was levied by the gov ernment before for similar purposes.
 This is the first time l have known of any such bill being presented in our state and I doubt If 1t will receive tho support of a majority of the representa- lives at Montgomery.
 Tt imposes a direct burden upon the borrowing class and 1t seems that they already have enough burdens to bear.
 q cannot see where 1t would effect our business except, perhaps, to give us a little trouble, because no papers or ,ctes can De pdSScu uDOil Dy LIE Ddlh JAdNiuiSs under this act, until after they have been stamped Therefore i: will be very easy to see upon whom the burden will rest
 Tn the next place, even If snch tax was imposed as the one named in the bill. it is out of all proportions. In nv judg- ment 1t would be an unreasonable anl un- fair tax on the people,"
 Otto Marx.
 {,a Co of the idea in the new revenue bill to ex- empt investors from taxes on bonds and mortgages in this state. It will have a tendency to reduce interest rates and encourage investment in mortgages in bonds; but I am not in favor of any stamp tax being created, as l believe 1t would be obnoxious to the people.
 ''The provisions of the bill as intro- duced, would put the hardship on the bor- rower. For example, If you go to the bank to borrow 5000 for three days, the tax of 10 cents per 500 would be bur den and a hardship. The fact that you could borrow 5000 for three years and pay the same tax Illustrates the inJustice and inequality of the law.
 '.The knowledge that this state is the only state in the Union which would have such a tax would. in my opinion, com plicate things considerably
 Tt would have no effect on foreign capital coming into the state. as the borrower would have to pay the freight. It would simply reduce interest rates on money now being loaned by citizens of the state of Alabama. Insurance compan- les in Pennsylvania are taxed 4.10 or per cent on all mortgages made In the state of Alabama. This tax is generally taken into consideration by them in making a rate for this state.
 'In summing up this part Of the rev enue bill. believe stamp tax would be obnoxious to the people. The tax on. mortgages should be done away with en- tirely and revenue provided in some other manner"
 w. B. Leedy.
 w B. Leedy: ''I have not thoroughly studied the revenue bill and would not like now to give my opinion.
 'sThe bill is far-reaching in its effects and should not be hastily considered. believe that as to taxes on notes and mortgages it would perhaps produce greater revenue than under the old law Tt might bring out more money in this state to be loaned on mortgages than formally. If so. 1t might detract from real estate investments. It would not in my opinion, keep foreign money out for such loan companies would make the bor- rowers pay the tax. In fact, the borrower would have to bear the burden, be the lender home or foreign
 "It would materially effect the banks, or rather their customers, as under the present law no tax is exacted on loans made over their counters and indorsed notes single-named paper or collateral loans, and I would be surprised if the banks did not fight the bill.
 At any rate. the borrower. the dear people, would have to pay the freight"
 Henry L. Badham.