The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1905-04-30
GEORGIA LOOKS
FOR MORE FIGHTS
Present Litigation Only Begins
War on Corporations
IF STATE GETS DECISION
Two Georgia Counties Will Be Pitted
Against About Forty Others, Each
of Which Is Anxious to Fat
ten Its Treasury.

Atlanta, April (Special)-Following
the final decision of the state courts in
the big fight involving taxes on 10000
shares of capital stock of the Western
Railway of Alabama, in the event that
decision should be in favor of the states
right to tax, will come another struggle
which will be fought with equal determin-
alton, in which two Georgia counties will
be pitted against some thirty or forty
others each one anxious to fatten its
treasury at the expense of the corpora
TONS
The opening Stages of this future fight
may be reached before the beginning of
new year. The cases have been ar
gued in all their details in the superior
court, this argument having been con-
cluded today before Judge John T. PEN
dleton. 1t is expected that it will be at
least month before his decision is an
nounced probably about June l. 1t will
be about thirty days later or about July
l. before the bill of exceptions by one
side or the other is filed in the supreme
court. The supreme court may or may not
take the case up before its summer re-
cess in August and September. If it
would be the usual procedure. 1t would
be the latter part of the year or early
In 1906 before a final decision could be
had.
In thu event of decision against the
roads and in favor of the states right
to tax, 1t follows, of course, that this
stock will have to bear also its burden
of county and city taxes. In assessing
taxes for the city of Augusta and for
Richmond county against the Georgia
railroads half of the Western of Ala
bama stock. Comptroller General Wright
has already practically decided that the
city and county in which the owner re-
sides Is entitled to such taxes as against
the counties through which these rail-
roads run, and which claim that they
should share in the distribution of such
taxes. Comptroller General Wright took
this action upon the ground that this
stock is personal property with a fixed
location or situs, an therefore is tax
location or stus. and therefore Is tax
County Against County.
This means that, always in the event,
of course, that the state wins it's suit,
Richmond county and the city of Au-
gusta will be pitted on the one hand
against all the counties, cities and towns
| through which the Georgia railroad runs.
Likewise Chatham county and the city of
| Savannah, will have a fight on their
hands with the countless cities and towns
| through which the Central of Georgia
| passes.
| The counties along these lines contend
| that they are entitled to participate in
these taxes because the stock In ques-
| ton belongs to the entire road. Savan-
nah, Augusta, Chatham and Richmond
| counties, will base their fight upon the
attitude taken by the comptroller general
to the effect that personal property is tax
| able at the home office of the owning
| company.
Attorneys have already been engaged
| to fight the claims of several of the
| counties and cities which will be in
| volved in this J legation. Hon. Hoke
| Smith of Fulton county, which will ALSO
| doubtless claim the right to participate,
has been engaged to represent Richmond
| county, in association with Hon. Boykln
Wright of Augusta. who will represent
| both his city and county. Sc -eral OF the
counties through which the Georgia rail-
road runs have engaged attorneys to
make a fight for a portion of this tax
money. even in advance of any final de-
| cision by the courts as to the taXability
| of the stock.
| May Go to Legislature.
One of the attorneys engaged by Geor-
gia railroad count, in discussing the
| coming struggle said he thought the
counties traversed by these railroads had
| good case. He admitted however, that
there were strong points on the other
| side and while he is not sure by any
| means of success under the present laws,
he expressed the opinion that the matter
would probably go to the legislature,
where, with some forty counties opposed
| to two, he thought there would be no
doubt of the issue. In other words. he ex-
| peets to see a bill passed requiring the
distribution of taxes on all personal prop
erty owned by railroads, among the coun-
| ties through which such roads pass. just
| as is done in the case of rolling stock.
| This would take away from the large
| cities and counties of the state consid-
| cradle sum in taxes every year, and they
would Internationally fight any such prop
| osition when the majority of the counties
in the state combine against about hair
a dozen.
The railroads would undoubtedly be glad
| to see some legislation on this Inc De
| cause the tax rate in the large cities ana
| counties Is usually much higher than IN
the country counties. Hence. with dls-
| tribution of the tax on their personal
| property the annual cost to them would
| he considerably less than it is at pres
| ent.
| The present litigation. therefore, may
bring on an interesting proposition lor
| consideration by the coming legislature.
| The litigation itself is one of the most
gigantic propositions that has been be-
| fore the courts i'm some time. involving. as
1t does, practically 100000 in back taxes
state, county and city.