The Birmingham age-herald., 1907-07-03
AG|TATORS HAVE
 DONE MUCH HARM So Says Governor Conner Re- ferring to Money Loan Bill TAX IS A LEGAL DUTY Governor Explains Opposition to Gum nells' Educational Supervision Bill.
 Thinks People Have Good
 Judgment of Men.
TAX IS A LEGAL DUTY

Montgomery July 2.-(Special)-In the light or the statement of Henry c. Sel- heimer of Birmingham, to the effect that it is mandatory upon the legislature to pass laws requiring the payment of a franchise tax by foreign corporations, it is pretty well established that the re- port that Governor Conner will not oppose repeal of the foreign money tax is any thing else but well founded. 'The agita- tors on this question by exaggerated and unwarranted statements have done the state great harm" said the governor, this afternoon.
 MT. Selheimer takes the position In line with section 232 of the state consti- tuition, that the said instrument makes it the legal duty of the legislature to provide a tax on foreign corporations, which shall be based on the actual amount of capital employed in the state The wording of that part of the section bearing on the case Is as follows; "The legislature shall by general law, pro- vide for the payment to the state of Ala bama of a franchise tax by such corpor- ation, but such franchise tax shall be DdStu Ou lut htludl dAiOhlld OA NHPiN"A employed in tbs state Strictly benevo- lent, educational or religious corporations shall not be required to pay such tax"
 Governor Conner said today that he did not want it understood that either he or the legislature is preiudiced toward the foreign loan companies. For himself he knows that it is not so; he believes he understands this as the feeling of the members of the two houses.
 Executive Surprised.
 The governor is surprised that mat ter which he argues, will, on investiga- ton, prove to be a small one, has so agitated the public mind. He points out that the tax on foreign money lenders runs from one and three fours of mills to miles, that it will amount to $l75o on slO.OOO, $175 on S10O0O0 and S75O on $1 1000, ,O0C, whereas any banking company in Montgomery using a million dollars would pay $25O on $lo,OOO, s25OO on $1OoOoo and S25,O00 on a million.
 This comparison should convince any one that our present legislature is very friendly toward and have done everything they reasonably could do to encourage under our constitution the loans of for eign money in our state.
 Ellis Measuring.
 "The agitators on this question by ex- aggerated and unvarranted statements have done the state a great harm If the borrower had to pay the entire tax anu could borrow money without the tax at per cent, with the tax on he would pay 6 1-6 per cent Certainly this is not destructive prohlbltive, confiscatory, dras- tic or anything else unwise or bad
 The governor Is impressed with a let ter from J. B. Ellis of Selma, Alabama representative of the Fidelity Mutual Life of philadelphia, who gives 1t as his opin- ion that the foreign money lenders will not object to the law when they under stand it. Writing of the discussion which he had with lending companies in the east, Mir. Ellis said: After discussing the matter fully with them, they are perfectly willing to continue operations in the state, both in reference to life insurance and the negotiation of loans, as the law now stands. Glad to note that when the matter of the operation or the law was fully understood that they seem ed entirely willing to cooperate with
 
 Does Not Approve Bill.
 Governor Conner Is not opposed to an educational supervision bill that will put qualifications upon the man who shall serve as county superintendent of edu- cation, as some thought from his talk at Plantersville last week. He believes, however, that the people have judgment enough to elect the superintendent; there fore he would not be for selection by county boards. as some have advocated
 The governor said today that while he thought the choosing might safely be lelt to the people, 1t is important that Q man who presides over and conducts the schools of any county be man well posted on teaching and the science there of With the increasing state approprta- tions for the schools it becomes more and nore important that the local ad- mnistration should not only be business like but educationally efficient, and only a man who knows something of school work can bring this about to the best advantage.