The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1905-04-26
CENTRAL RAILROAD
CASE IS STILL UP
Hearing in Atlanta VIII Con-
tinue Until Friday
INVOLVES TAX QUESTION
State, County and City Taxes on $4,000
Shares of Stock In Western
Railway of Alabama
Involved.

Atlanta, April 25.-(Speeial. )-Another
day in court and argument has not yet
been reached in the Georgia and Central
railroad tax cases, involving state, county
and city taxes on the 15,O00 shares of
stock in the West Railway of Alabama,
owned by each of these Georgia lines.
Practically the entire day in Fulton
superior court today was consumed in
presenting evidence and reading addl-
tional papers filed in the case. But the
arguments will be taken up tomorrow.
probably the first thing, and as some
thing like five or six hours will be con-
sumed by each side it will probably be
Friday morning before the hearing Is
concluded Nevertheless every feature of
the case will have been gone into, and the
court $ decision will cover practically all
points made.
The hearing opened yesterday with the
reading of answers to the amended pc
titions filed by the Georgia railroad and
the Central of Georgia. The answer to
the Central railroads amendment was
read by Attorney General Hart.
The state made emphatic denial that
lilC COluplIOlleI CULTURAL hlltN VI liO "a
istanee of this Western of Alabama stock
prior to 1901 and said as soGn as he dis
covered it was owned by these roads, de-
mand was made for taxes upon it.
1t was denied that the Central of Geor-
gia had been singled out to be made to
pay taxes on stock owned in a foreign
corporation, while other owners of for
elgn stock We're allowed to escape taxa
ton. on the other hand it was asserted
that the comptroller general knew of no
other parties or corporations in the state
owning stock in foreign corporations, and
If he had known of such he would have
demanded taxes from them
The plaintiffs had claimed to have
knowledge of owners Of such foreign
stock who had not made return of it.
If they would furnish such information
to the comptroller general 1t was assert
ed that he would at once demand the pay
ment of taxes from them. 1t was there
fore denied that the plaintiffs had in any
wise been refused the equal protection of
the laws.
Taxation of property, it was held, de-
ponds not on the practice of taxing Off
GERS, nor on the questions submitted to
property owners, but upon the constitu-
ton and laws of the state. Nevertheless
it was denied that the taxing officers had
acquiesced in any failure to observe the
| laws
| The constitution and laws of the state
provide that a person living in the state
owning stock in a corporation located
in another state shall pay taxes on such
property, and that a person living in an
other state owning physical property To-
Gated in Georgia shall pay taxes on such
property. This is the scheme Of taxation
which contemplates equality of taxation
on all classes of properly, and Is not a
| classification of property such as is for
/ hidden by the constitution.
similar answer to the amended petit
ton in the Georgia railroad case was
read by Hon. Hoke Smith,
Evidence Is Introduced.
When court was adjourned Monday, the
| question of the admissability in evidence
o. certain affidavits by tax receivers GO
| ing to show that they had not insisted on
the return of foreign stock for taxation
was being argued 1t was subsequently
be read. the objection noted and argument
| as to admissability made along with the
main arguments in the case.
Mr.. King then read these affidavits with
a view to showing that the taxing officers
| of the state had never required any re-
turn to be made of foreign stock. and that
/ no tax had heretofore been levied upon
it All of these affidavits were objected
| to by the state.
Mr.. King next read an affidavit from
Auditor F. A. Healey of the Atlanta and
West Point railroad in which 1t was stat
ed that the entire property of the Western
Railway of Alabama was returned fol
taxation in Alabama at $2123,I15, while
there was outstanding upon the road a
fFstfr
that the entire Atlanta and West Point
railroad had been assessed in Georgia
at only $lS90,34S The object of this was
to show that the comptroller general had
over-valued the Western of Alabama
stock, having assessed the $3,0OOOO0 pal
value in some instances at S4,OooOOo To
$4,500.000.
Judge Pendleton at first ruled out the
evidence as to the assessment of the road
in Alabama, as irrelevant, but it being
stated that all evidence was to be argued
later. he withdrew his ruling.
Mr. King then took up the manner oil
assessment of the stock of Comptroller
General Wright. After Offering some evil
denee on this line he was asked by Judge
Hart what he proposed to SHOW.
II am going to show he said, thai
the comptroller general was making g
bust in assessing the stock. that he shul
his eyes and went it blind.
| Among other evidence introduced was
a letter written in 1879 by the president
of the Georgia Railroad and Banking
company to Comptroller General wright
notifying him that the Georgia railroao
was the owner of half interest in the
Western Railway of Alabama. The stoci
had not at that time been issued, however
There was evidence introduced to show
that the total dividends on l5.ooo shares
of this stock in 1896 were $4,000: in 1897
s45 900: in 1898 and 1899, nothing; in 1900
SIS. 700; in 1901 1902. 1903 anud 1904, $ooOuo
| This makes a total of $4,000 in nine years
on 81 100000 par value. or dividends vary
ing from nothing up to about per cent.
Mr. Kilpatrick, when the evidence fol
the .pla htiffs vas all in, read the evi
dence i'm behalf of the state in the Cen
trail railroad case. This consisted Target,
of correspondence between the comptrollel
general and officials of the road going t.
show that demand had been made for {
return of the Western of Alabama stool
for taxation ard finally refused by thu
Central railroad case. A number of othei
letters and affidavit: bearing on th'
states side tf the case were also pre-
sented.
The court will sit tomorrow when 1t Is
exnected arguments on the demurrers ant
In fine main cases will be heard.
|