Sequachee Valley news. (Sequachee [Sequatchie], Tenn.) 1896-1952, 1906-06-28
SUIT TO COLLECT
FROM T.C.,L. R.
Subject of Statement by Com
pany Official.
PROPERTY OUTSIDE STATE
, Beyond Jurisdiction, tie Con-
tends, of Tennessee Author
tiles.

CHATTANOOGA, Tenn, Jlne 20.
A few days ago the State Revenue
Agent, j. r. Jetton, employed several
firms of attorneys and began an action
in Grundy County, Tenn, against the
Tennessee Coal, Iron & Railroad Com
pany. which raised an interesting leg
al question, and which is of great i'm
portance to the business interests of
this State.
In this action it is sought to back
assess the Tennessee Coal, Iron Rail
road Company on about $50, 900, 600
worth of property, and to recover some
thing near 5000, 900 in taxes alleged
to be due the State and county, The
case is set for trial on July II before
the Trustees of Grundy County.
At the time of the institution of the
suit the State Revenue Agent gave to
the press a statement in which he re-
cited the States side of this controver-
sy. To-day the following statement
was given out by Col. Spears, attorney
for the company:
s%rhe Tennessee Coal, Iron q Railroad
Company is Tennessee corporation.
Col A. S. Colyer of Nashville, the vet
eran lawyer, statesman, journalist and
8 historian, was one Of its organizers,
and was for many years its President.
''Col. Colyer had great confidence in
the future not only of the company but
of the mineral resources of Tennessee
and the south.
1.-THE company is now strong cor
poration still seeking to develop the
mineral interests of Alabama and Ten
nessee.
''For many years its home office was
at Tracy City, Tenn, where it owned
large coal mines. 1t also had furnaces
at South Pittsburg and coal mines at
Whitwell
SAT least forty nine fiftieths, of its
property both personal and real tan
gible and intangible, has its situs in
the State of Alabama, The company
has not more than million dollars
worth of property in Tennessee.
This suit is based on the State
Revenue Agents construction of the
requirements of the assessment act OF
1903, under which he insists that the
State has right to add the market
value of the bonds and stocks of the
Tennessee Coal, Iron q Railroad Com
pany and deduct therefrom the assess
ed value of its real estate, and tax the
company in Tennessee with the differ
ence between the added value of the
stock and bonds and the value to the
assessed realty, wherever situated
THE value of these stocks and bonds
is based almost exclusively upon prop
PTty in the State of Alabama. This
action on the part of the State Reven
ne Agent is an attempt to assess th'
company on over forty million dollar
worth of property wholly and entirely
without the limits of Tennessee anC
beyond its jurisdiction, which properl,
is not now and never will be in tn,
borders of this State and is not ant
never has received the slightest pro
lection from the State.
1.-THE amount of taxes and penaltie
sought to be collected from this com
pany will amount to more than tn
value of all the property in the Stat
and would result in the absolute con
fiscation of the company's property il
this State, contrary to both the Stat
and Federal constitutions.
''Under this scheme, a Tennessee
corporation can be taxed for the fu.
value of its stocks and bonds, thoug
the property which gives value to th
stocks and bonds lies in other State
and is taxable in the foreign States
The only effect of such proceedings q
this is to drive capital and business Ell
terprise out of the State.
THE recent platform adopted b
the Democratic party at Nashville COZ
demns back assessments.
The Tennessee Coal, Iron & Raj
foad Company is perfectly willing
pay taxes upon the full value of a
the property it has in this State, bI
we do object to paying taxes on pr,
perty outside of the State, which
subject to taxation in their States -