The Montgomery advertiser., 1905-01-06

 WITH CASE State Board Submits a Proposition. TO WAIT ON SURETIES Mobiles Ex-Tax Collector Will
 Pay $6,653.i7. Attorney Argued that Guarantee Cem- pany should Not Pay Interest as Delay in Finding Error E Was Not TAeirs.

A compromise proposition. whereby the alleged indebtedness of former Tax Collector John Case of Mobile County. to the State of Alabama. Is fixed at $6,653.t7, was offered yesterday morn- ing to his surety. the Fidelity and De- pc sit Company of Maryland, by the State Board of Compromise.
 The Fidelity and Deposit Company of Maryland was represented at the meeting of the Board by ]. W. Gray, | of the firm of Bestor, Gray and Bestor, | of Mobile. All members of the Board were present, including Acting Gov ernor Cunningham, State Auditor T. | L. Sowell and Attorney General Massey Wilson.
 The action of the Board yesterday was prompted by the late report of As- sistant State Examiner c. F. Sedberry. who made 6 second examination of Case's books few days ago. This examination revealed an additional credit of Cases in the form of book of abatements which was missing on the original examination for some un- explained reason and served to reduce Cases shortage from approximately $9.000 to $7.s67.e6, including interest from July 1, 1900. at per cent. state Must Have Early Reply. According to further terms of the compromise proposed by the Board, Att torney Gray is to submit the proposi- 1, tion to the surety company in Baltt- more, and report back to the Board iae lcompany's acceptance or refusal with in ten days or two weeks. If the com promise is agreed to by the Fidelity and Deposit Company of Maryland, and the amount of alleged shortage named Is paid the State, the suit of the State against Case will be withdrawn and the former Tax Collector of Mobile County will be released from his bond of $6o,ooo.
 |. In arriving at Cases alleged indebt- edress to the State according to the ultimatum of the Board of Compromise, the interest on the principal sum was reduced by one-half and computed at { per cent. for four and a half years.
 The principal sum Is $S.e3s.i4 which should have been paid into the State Treasury July 1, 1900, according to the report of Examiner Sedberry. The in. | terest on this amount at per cent for four and q half years added makes the total se.e5s.17.
 For a while yesterday 1t looked as If no compromise would be reached. The Board would not subtract all the interest as petitioned by Counsel T. W. Gray. After long deliberations, how ever, 1t was agreed that the rate of Interest should be cut half in two and the proposition endorsed by both the Board and Mfr. Gray is to be sent to the
 surety company for ratification.
 Board Was Unanlm0us.
 State Auditor Sowell said soon after the meeting that he believed the prop
 osition. if finally agreed upon. would
 be very equitable. The action of the
 Board was unanimous.
 The argument used by Attorney Gray
 to deduct all tho interest was that the
 surety company was not responsible for the delayed discovery of the alleged of the delay lay in negligence outside of the company he represented.
 It will be recalled that Cases al- Ileged shortage consisted not literally of withholding taxes collected. but re-
 ceiying a double allowance on his ab- stract of abatement and errors and tn- solvent assessment on taxes assessed for 1899. The discovery of this mistake was not made until the fall of 1904.
 When the Board of Revenue of Mo- lbiIe County made the charges against Case from the assessment books and forwarded them to the State Auditor to be entered in his books one allow ance was made for errors and insolv-
 ents and abatements. Later when the
 former Tax Collector came to Mont gomery to settle with the Auditor for taxes collected for 1899 he presented an abstract showing another allowance for
 precisely the same amount as was a1- flowed previously.
 This allowance repeated probably by mistake, Is supposed to measure the principal sum due from Case. or $5,- I639. .14s