The Montgomery advertiser., 1907-05-08
Letters to The Editor
Taxing Loan Companies.


Editor The Advertiser:
/ read with some interest and care
the interview of our Governor III ne
Advertiser on the subject of FRANCHISE
and other taxes against foreign cor
nortations; also read X r. as com
muni4ation on this subject ~ aPpsias
to nh that in both or these aIlloies
one of the main arguments against SUN ot
taxes in so far as those who lend money
in Alabama are concerned, - ehAIeix
overlooked; that is, that all OF thls CAP
ital again being two or three Ihss
taxed here is already taxed heavily AZ
the home Office of the corporation, IN
that respect it cannot be classed atoms
with the lands that FARMER ter cry
man. for that matter) pays taxes OIL
for having once paid his tax ne pays
IL no more / am informed that tne
last Legislature passed 1--WE separate
acts (including two separate ncensssl
taxing foreign corporations iHVe se
canital in Alabama. Some or these. IL
is true, am told, amended former acts;
one of these laws taxes this capital
so per thousand when a mortgage
is filed for record. .oo,.,n
CORPORATION comes into Alabama to d0
business Chat is when they engage IN
lending their capitaD they snoulq pay
a license, but only one, ana ProDapis
small charter fee, but not enough 10
make it in effect a tax.
Suppose our Governor had friend
or kinSmdn in tennessee VI 0CoA 40,
or some other State. and that person
knowing him to be good business
man (and therefore good 1udge %
values, etcC should send him $4,000
him in Alabama, and the same was in
vested in a loan either secured by
good note or by. mortgage, ana the
Tax Assessor should hear OF II. ana
err of the note or mortgage for taxes.
would not the Governor advise his
friend that ne could successfully re-
sist such an effort to make him pay
surely he would, and why? Because
his friend paid Cor Is presumed 10 nave
paid tax on the notes or noFtgase az
his place of residence in tennessee OF
Georgia; in other words. his residence
being in another State, as L am advised,
the title and ownership of the prop.
erty is held there and not here. ana
1t Is taxable where IL Is oWhso. anu
not in Alabama.
That looks reasonable and fair,
Now, what makes the difference as
against foreign investors and the Geor-
gia or Tennessee man? Both are non,
residents, but one is an individual, and
the other a foreign corporation ana
the latter is permitted to come in and
do business by suneranee, ana the per
mission of the State only; but why
Why have as many as two licenses and
three other forms of taxation as
against them; | cannot see why " q
foreign corporation has once paid on
its capital at it's home office II should
nav a very considerable franchise tax
on it again in Alabama where IT comes
and is willing to invest It's captal a!
lower rates so as to be a very gTea'
assistance to those who need II most,
I am informed that law attempt
ing to tax the capital OF foreign IN
yestors was enacted over twenty-five
years ago in this state, and necause
The rooplr we've against y u was very
speedily repealed in the next session OF
ne i4cgiS t.st urc.
wonder il anybody could estimate
how many land owners have had their
lands and homes saved to them in Ala
bama in the last thirty years by the
a ssistance of foreign lenders? These
lenders so arranged it that borrowers
could pay hack the debt In install
ments of five and in many instances ten
wears. and it is we'll known that many
of them do pay off these debts entirely
| in this way, or II not paid entirely
| thew make a renewal which gives them
another term of years to pay. 1t ts
| said that there were hundreds of them
| last fall badly crippled by the Sep.
| TENDER storms, and I have been told
that they depended entirely on for
| eipn investors helping them out, Gould
| they count on the same assistance
now? / am informed that they could
not. because these same concerns are
| pulling out of the state and going to
other States more friendly to them.
Land Owner.