The Birmingham age-herald., 1907-11-15

President A. II. Ford of the Birming- ham Railway. Light and Power com pany has addressed litter to the May or and Board of Aldermen of Birming- ham asking for a reduction in the com pany's license tax for the year 1908. MT. Ford points out that the company's property assessment recently levied by the state tax commission is so in creased that it will yield the city of Birmingham alone $26 ,94S. AS for 1908. The license tax now imposed by the city is $S5,oOO a year, and if this is unchanged the company will be forced to pay the equivalent of 6 per cent on its total receipts, which is s5 per cent above the average percentage of street railway taxation In southern cities.
 MT. Ford also points out that con ditions have recently changed to the company's detriment. During the past two weeks fare receipts have decreased from 12 to } per cent. The presidents letter in full is as follows:
 Birmingham, Ala, November II, 1907. Mayor and Board of Aldermen of the
 City of Birmingham, Birmingham,
 Ala.
 Dear Sir-It is the custom I am informed, for the city, of Birmingham near the end of each year, to adopt its schedule of license taxes to be i'm posed on the various occupations and businesses subject to such taxation for the year following. and l, therefore, as- sume that the municipality will short ly take such action.
 l fully recognize that you are con fronted in the outset with loss of revenue, and 1 appreciate the fact that the task of adjusting the necessities of the city to the changed conditions is most delicate. But, the municipalit.' will not, l feel. knowingly distribute the burden of the changed conditions unjustly, and I therefore write to ask that the license tax imposed on the Birmingham Railway. Light and Power company as the opera tor of street cars, electric light and gas, be reduced, be- lieving that the company is justly en- titled to the reduction. and that I can establish the justice of it's claim to any impartial mind.
 License Tax Now $35,ooo.
 The license taxes now imposed on this company by the city of Birming- ham alone are s35,000. The company is also sub ject to license taxes i'm posed by various other municipalities aggregating s9,S66.75, making a grand total license taxation of $46,976 75 now in force, including $2110 paid to the state and county. The total amount of license tax imposed by Birming ham for the year 1907, exceeds the total amount imposed for the year previous by $9475, and the grand total of all municipal taxation for the year 1907 exceeds the total amount imposed for the nravfn1c g1D 04Q T5
 The argument-I may say the sole argument-h eretofore advanced in jus tification of the enormous license tax imposed by the city of Birmingham for the year 1907, was that the com pany owned and exercised valuable franchises granted by the city, which were not taxed as property by the state or otherwise. and which ought to yield a revenue to the city. But the recent legislation has changed that condition and the franchises enjoyed by the com pany have been assessed by the state tax commission at $2,760000, in addi- tion to the tax assessed against it's physical property on a valuation or $2,500,000. the latter assessment itself representing a substantial increase over former years Of the $5,00O,000 total assessment imposed against the company S2,69S,449 has been legally to Birmingham and it will therefore derive a revenue Of S26,9s4 4S for 1908 from the tax assessed against the company's physical property and franchises, s against the sum of $11,- 010. 95, as property taxes for the year 1907; or an actual increase to the city of Birmin gham to be paid by this com pany in the way of taxes on It's prop ertv and franchises of $15,973 54 over the year 1907, of which S6031 72 Is ap- portioned to the increase in the as- sessment of the companys physical property and s994l S2 will be deflVed from the tax on it's franchises. It re- suits from these facts that II you re- duce our license tax $1OOOO the clty will still clear $5973 54 more from thls company in the way or taxes TOT the year 1908 than for the year 1907, and That the~ increase is derived largely from the tax on it's franchises, which the city has heretofore indirectly taxed by it's system of license taxation.
 Burden Is Unbearable,
 If the municipal license taxes imposed upon the company remain at the present figure for the year 1908, this company will be required to pay a sum aggregat- ing st51, ,474 IS in payment of all taxes as sessed against it. The burden therepy imposed is unbearable. It will be equiva- lent to per cent of our total recelpts' if our receipts are as large III lVpo 'io they have been in 1901-balance of l0i pe- ing whereas the latest statls- tics complied by the government or the United States show that the average per eentage of total taxes on receipts or street railway and electric light com panies in the south is 3.69 per cent, an excess against us over the general aver age of S5 per cent. And our operating expenses are above the average for the reason that we maintain and operate l53 miles of track. whereas the average mileage for the number of passengers transported is much smaller. The pop- ulation of this county is widely scat tered. and it was necessary to extend it's mileage, in order to meet the de- mands of the different sections of the county. and to place them all in quick. and convenient communication with Br- mngham.
 In this connection we submit a table showing the amount of taxes paid by this company, beginning with the year 1903, and including the year 1908, the lat ter being estimated upon the theory that all licenses imposed upon the company for 1908 will be the same as those inn posed for 1907.