The Birmingham age-herald., 1903-01-24
Opposition to the Revenue Bill VIII Give Some Sec-
 tIons Trouble
STAMP TAX ON NOTES
 WOULD BE 4 HARDSHIP
Jefferson Delegation Apparently Unit in Favor of the Change In the Mortgage Tax-Members.
 Discuss 1t.

Montgomery, January s25.-(SpeciaL)- The discussion of the provisions of the proposed revenue law has been general ton of the bill on Wednesday. Already some of those persons who are to be most effected by the stamp tax on mortgages and notes, have made their appearances in the lobby and from the stand they take 1t appears that the sections in the new bill, including these provisions, are to have a rather rough road to travel
 Among the mhre prominent men here today looking aiser these interests were George A. searcy of Tuscaloosa. of the State Bankers association, and Robert Jemison president of the Birmingham, Railway, Light and Power company
 Neither of these gentlemen would sub It is known that they were both interest ed in the revenue matter. MT. Searcy, 1t Is understood represents the State Bank association In making a protest on the provision for stamp tax on notes.
 Would Be Unjust.
 The bankers generally hold that this would be a very unjust tax. and one that the borrowers would have to pay. There Is some doubt as to whether Auditor Sow ell will push the adoption of this provi- sion.
 MT. Jemison 1t Is inserted. was looking after the provisions for a tax on the gross income of gas, electric and street railway companies.
 The members of the Jefferson delegation are apparently a unit in favor of the change on the mortgage tax, but they are divided on the question of the tax on notes. Discussing the matter today Sem ator Hugh Morrow said:
 Senator Hugh Morrow Talks.
 During the last session of the senate l opposed the present tax on mortgages, not only because 1t was an unjust dis crimination in favor of non-residents who lend money in this state, but also be- cause 1t amounted to double taxation. I am still opposed to the present mortgage tax.
 The new revenue bill, in providing for stamp tax in lieu of the preesnt mort gage tax presents an entirely new ques- tion of state legislation and being a pro- posed change. radical in It's nature, should not be hastily considered. l have not had the time to consider 1t as fully as I should like to under the circum- stances
 Tt will be remembered that the pro- visions of the stamp act do not apply to open accounts due for merchandise nor to notes etc. given for rent. I do not think it should apply to bank transac- tions. but should be limited to instru- ments or notes secured by instruments which are now required by law to be recorded If 1t Is not so limited it will be source of great inconvenience and ex- pense. My reason for this is that in the ordinary course of trade with banks the notes are for shorter periods of time and are frequently renewed from two to six times a year.
 Will Not Stop Foreign Money.
 ''I do not think there is anything In the contention that foreign money will not seep investment in this state If the stamp act passes simply because the man who borrows the money will also have to put the necessary stamps on his notes. After all 1t is the man who borrows that pays all charges. He does so now, he has al- ways done so, and will always continue to do so It will not add one cent to the foreign money lender, and not one cent to the resident money lender. With the amendment proposed the stamp act will help the resident money lender but not at the expense of the nonresident. Un- der the present mortgage law the resi- dent pays. or is supposed to pay. $23 on every thousand-dollar mortgage, under the stamp act he pays nothing, unless he is disposed to pay for the stams. in .I-I. ...tlI .1xr nnef I ts.. fI thousand, a saving of s22 per thousand. As 1t Is now the resident cannot com pete with foreign money; in order to net per cent he must lend his money at something over per cent.
 "I also think that charges should not be levied by stamping the notes. but should be collected by the probate judge as other fees are collected when the mortgage or other instrument in writing is filed for record This will save the inconvenience of running around after stamps. I am opposed to the bill as 1t now stands"
 MT. Benners Talks.
 Representative Benners gave the fol- lowing as his opinion:
 q think there is considerable misappre- tensior as to the motive of the mortgage stamp tax proposed by the revenue bill. The present rate of taxation on mort gages in Birmingham. state. county ana city, Is $22 50 on each 5000 secured. The rate proposed by the revenue bill is q per s1000. or one twenty-second of what 1t now is No tax can be levied on a mortgage held by a nonresident, conse- quentiy non-residents have a monopoly of the money-lending business Tn Aia- bama. Our own citizens should be placed cn m equality with outsiders.
 "rhe proposed tax Is so small as to hurt no one while 1t will give our home capital the same chance as nonresident capital.s and do away with the cumber- some ana often exper sive methods now resorted to by our home people to evade the onerous tax which our laws now