The Montgomery advertiser., 1905-04-11
STATES CLAIM
 COMPROMISED Board Agrees to Fees on
 Mortgages.
 gT ,- TO WITHDRAW SUITS Equity in Contention of Two
 Trust Companies. Continental Company and Republic Company Made Good Showing In Opposition to Paying All of

Baltimore, holding a mortgage for $15,- 900, 900 and the Republic Iron and Steel Company, offering a deed of. trust for SIG. 100000. The Continental Trust Company will tomorrow pay into the State treasury the tax of 15 cents on each one hun dred dollars of only $10.000,000 and the Republic Iron and Steel Company will pay the tax on only $3,000,0O0. The State, under the former compromise, will withdraw the suit it brought against the Continental company for the recovery of the tax on the total amount of the mortgage in the United States Court for the District of Mary land. In the case of the Republic com- pany. it will be allowed to file with Probate Judge Samuel E. Greene, of Birmingham, its mortgage in consid- eration of the payment of the tax on S3, ,00O, 900.
 By the mortgage tax law, which was passed at the last session of the leg islature, two-thirds of these amounts will go to the State and the other third to the county.
 Meeting of the Board.
 Before the State Board of Compro- mise yesterday the Continental com pany was represented by Counsel R. E. Steiner of Montgomery, and the Re- public company by E. K. Campbell, of Birmingham All members of the Board were present, including Governor Jelks. Attorney General Massey Wilson and State Auditor T. L. Sowell.
 Several months ago the Probate Judge of Russell County discovered that the Seabord Air Line Railway had filed with his office a deed of trust made to the Contental company. of Baltimore for $75.000,000. and the same was recorded by one of his clerks without demand for the tax of 15 cents on the hundred dollars A de- mand was afterwards made on the company for the payment of the full tax which was refused. The Attorney General then placed the suit in the hands of prominent law firm of Bal timore to recover the total tax. It has been pending ever since. It will be dismissed at once If 1t has not been already withdrawn. Under the compro- mise the State is to pay the costs of the suit which includes. 1t Is supposed, a neat attorneys fees
 Equity in the Case.
 The equity in this case lay in the showing of the Continental comnanv that the deed of trust given to them embraced the security, not of a total new indebtedness of $75,0O0. 900 but ohly oI SlU,OOO,OOO.
 some time previous to the day on "hlch the deed was recorded. the com pany had filed a deed of trust for s65.- ooo.0OO. on which all taxes due were pald. When the new indebtedness of SlO.OOO,O00 was created by the Seaboard Ar Line Railway 1t was merged with the $65,000.000 into a single mortsaee and the old instrument seems to have been cancelled. It did not thus seem Just to the Board of Compromise to as- sess the mortgagee with taxes on more by the last deed. although the face of the instrument showed an indebtedness of $75. .O00,0 ,000
 The Republic Company made the showing that the deed they desired to record in Jefferson County secured an indebtedness to trust company for $1O.000,000, but that of the property or improvements in the transactions only $3,OOO.000 lies within the State of Ala bama. It did not occur right to the Board, therefore, that the full tax should be charged on a deed of trust covering an indebtedness secured by property not wholly within the State. To Withdraw Petition. Mir Campbell had brought mandamus proceedings against Probate Judge Greene of Jefferson County, to compel
 
 The proceedings will be withdrawn un- der the agreement of yesterday. The State and the counties affected will together receive on both these mortgages fees amounting to $19,5OO. Of this amount the State will get $13,- | 900, Russell County 5000, and Jeffer- son County $l,500.
 The State Board still maintains that these compromises do not affect the in- oF { | will be enforced hereafter in all cases | where they are equitable. Besides the | equity in the Continental Company's cases, there was the extra considera- 1 tion that If the State could expect to recover the full amount of $112,5O0 1t | would not be until long period of liti- gatlon was gone through probably at the expense of the State.
 Manhattan COmpany's Case. The case which now remains to tes. the constitutionality of the mortgage tax law Is that of the Manhattan Trust Company of New York. wherein 1t l seeks by mandamus to compel Probate Judge J. B. Gaston of Montgomery County to pay back the statutory fees on deed of trust for $2,000,00 made to the plaintiff by the Louisville and Nashville Railroad Company. These mandamus proceedings were brought a
 
 Montgomery, and after extended argu- ments by both sides, Judge William H. Thomas upheld the law in a deferred decision. The case was appealed to the Supreme Court of Alabama. It is un- derstood that no compromise in this case is sought of the State Board, and if will be fought out to the last.
 The deed of trust in the Manhattan comnanv's case secures a loan of $2,- O0O 900 recently foated by the Louis- vile and Nashville Railroad on the ac- count of the South and North Road. The fees paid to Judge Gaston were
 if is understood that the compromises yesterday. particularly that of the Con tinental Company's case. were not made without advice of the law hrm who hao oharo,e of the latter suit in Baltimore. They are the first compromises ever -.aIA hu the Board on the mortgage