The Montgomery advertiser., 1904-12-04

mental Trust Sompduy VI 1Aot SacAAN' 'o pay s112,5oo of taxes said to be due the State of Alabama and Russell County on a deed of trust in the sum of $76,000, ,000. Attorney General Mas sey wilson yesterday brought suits in behalf of the State and Russell Coun- ty to recover the first amount, togeth- CT with $150.0e0 of damages.
 The amount of taxes said to be due from the Continental Trust Company is computed by multiplying the sum named in the deed of trust, $75.000.000, by the tax of 15 cents on every $100 in mortgages, imposed by an act of the Legislature. The deed was executed to the Continental Trust Company by the Seaboard Air Line Railway and re- corded by Judge Henry T. Benton. Pro-
 bate Judge of Russell County, on
 March 17. 1904. The deed was exe-
 cuted to secure the payment of debt representing an issue of hfty-year. 1 per cent. gold bonds made by the Sea-
 board Air Line Railway.
 These suits were brought by the Att torney General upon the direction of Acting Governor Cunningham. The Attorney General was directed on Sep tember 13 to go to Baltimore and make preparations for the action if the Trust Company refused to pay the taxes. A demand was at once made on the com pany by the Attorney General. and it was refused. Since then the records in the cases have been carefully search ed and the Attorney General last week completed the complaints.
 The Governor was notified of the re- cording of the deed by Judge Benton September g. It had been recorded in the Probate once of Russell County during the absence of Judge Benton by one of the clerks. Several months later he discovered that the instrument was liable 1t Is alleged, to the privilege tax, and decided to begin an investi- gation by informing the Governor.
 The suit in behalf of the State was
 brought in the Inferior Court of Bal
 timore City and that for Russell Coun- ty in the United States Circuit Court of
 the District of Maryland. Both suits would have been filed in the United States Court were it not for the fact that the Federal statute does not in- clude a State in the diversity of citi- zenships whereas a County or other po- litical sub division of a State is re- garded as a citizen.
 The State by its suit claims $25.00o for taxes and $1o0.0o0 for damages on account of the neglect of the Trust Company to pay the taxes at the time the deed was presented for recording. The County of Russell sues for $37.- 800 said to be due on taxes and $50.000 for damages. The first sums named in each complaint represented two-
 thirds and one-third, respectively. of the total $112,5o0 of taxes. The statute provides for these proportions In the division of the taxes paid on trust deeds. mortgages and other like instruments conveying real or personal t,, 4R frA secure debts.
 The law also specifies that fee of 5 per cent of these mortgage taxes shall be retained by the Probate Judge when the deeds of trust or mortgages are re- corded.
 In the averments of the bills of com
 plaint written by the Attorney Gen. eral. being practically copies except
 as to the amount which have been all
 ready distinguished, 1t is set out that
 the Seaboard Air Line Railway has line of railroad running through the counties of Russell, Montgomery Ma con and Bullock. and that the road was formerly known as the Georgia and Alabama Railway. The deed of trust executed to the Continental Trust Com pany by the Seaboard Air Line Rail- way was recorded in Russell County as stated but no privilege tax as imposed by the enactment was paid and agents of the company who filed the deed re- fused to pay the tax. The suit is be- ing brought for only one County as the payment of the tax to one Probate Judge exempts the trustee from furth- CT tax. either State. County or muni- cipal The deed was recorded in each of the four counties.
 The bill of complaint in behalf of Russell County, after reciting the act of the legislature makes the following aVerments:
 The Seaboard Air Line Railway,a consolidated corporation for the states of Virginia, North Carolina, South Carolina, Florida and Alabama. exc the defendant, the Continenal Trust Company, a corporation in the state deed of trust in the nature of the mortgage, dated August 14, 1908. given to secure the payment of a certain debt, viz. $75,000.00o. represented by 50 year per cent bonds to that ag- greagte amount and issued by the said Seaboard Air Line Railway and which said deed of trust was executed so as to convey certain real property and in- terests therein and personal property situated in the Couhties of Russell. Montgomery Macon. and Bullock, and consisting of a line of railroads run ming through said counties, formerly known as the Georgia and Alabama Railway, including railway tracks. |.
 And said deed of trust was acknow- ledged and sworn to by the proper off, ficers of the Seaboard Air Line Railway on or about Febuary 6. 1904, and the said Continental Trust Company by the terms of the said deed of trust, accep- ted the trusts there declared and ap- nrnVo,l tha indAnfMFA QQtiafarfnFV fn the trustee, and by its proper officers Q Eahnar1 II acknnxzladaed