The Birmingham age-herald., 1907-07-03

meant to discuss the franchise tax he based his views upon a very different con- ception of the law upon the subject from what those directly interested in the mat ter now hold In the acts of the legisla- ture directly following the constitutional convention the law upon franchise tax ation is very clearly interpreted and pro- vision was made by that legislature that the law imposing a franchise tax should not apply to corporations loaning money in the state.
 Not the Same Law.
 That this is not the law which the gov ernor intended to discuss must be evident to anyone who examines the code and legislative acts The law taxing foreign corporations is an amendment of sections 1921 and 1922 of the state of Alabama of 1s96 and that is what has raised such row The original law provided tax upon the capital of foreign corporations not exceed ing $250 per annum, and loan companies have entered the state to do business with clear understanding of the law and with the further understanding that no change would be made in this law during their continuance in the state.
 Really, l do not interpret the foreign tax law as imposing an actual tax upon loans made in the state by firm doing business in another state and can only understand that a tax can be imposed upon the actual capital stock of such a corporation, but 1t seems that legislators and others have put a different interpre- tation upon the law and have caused such a scare that many money loaning corpor- ations have withdrawn entirely from the state and others have raised their rate of interest from 5k2 to per cent"
 Prominent Men Interviewed.
 A number of prominent men were inter viewed yesterday in reference to the for eign loan tax and all agreed that as n- terpreted it was a mistake and should be repealed.
 c. o. Simpson, cashier of the Citizens Savings bank declared that the foreign tax law should by all means be repealed, but if the constitution provided that such q law should be put into effect that, of course, there would be no way of get ting around it and it would have to stand,
 "I have had in my hands one of the petitions gotten up by the Commercial club" he said, and I have found every one I approached ready and willing to sign and aid in getting this obnoxious law repealed I think such a law Is very detrimental to the welfare of our state and if allowed to stand on our statute books will greatly impede the progress that is now putting our state, and partlcu- larly this county, In the front rank of development in the south."
 Jsdge Zell Gaston said he was most emphatically in favor of the repeal of the foreign tax law, but if 1t could not possibly be repealed 1t should be so amended as to make the tax rate lower.
 '"rhe trouble is this" said he, that the investor already has plenty of taxes to pay and if he wishes to develop some of his property and has to borrow and then have to pay still another tax 1t will work a hardship upon the man who is laboring to upbuild the state Under this law the borrower will necessarily pay the tax, as the lender makes the loan at as low rate of interest as he can safely make and in my opinion such a law will drive capital away from the stato."
 Surprised at Corners Attitude.
 T. H. Moton-"It surprises me to see an announcement that Governor Conner says he will insist against repeal of the foreign loan tax law. I was some what of the opinion that he would head the appeal of the people against the unjust exaction and thus relieve them of a burden which must be borne by them alone And not by the foreign companies.
 Foreign money has done much to de- velop Alabama and the gates should re- main wide open. Let them in
 Thinks It Will Be Repealed.
 President W. P. G. Harding of the First National Bank:
 My judgment is that the legislature of Alabama, representing as 1t does, the people of the state and all their interests will repeal the tax law against foreign loan companies and thus enable the state to welcome money from abroad and go forward in the work of building up and of general development. I never saw such a unanimous sentiment on the part of the people of a purely business nature as that now expressed against that act. Bankers. business, professional men and farmers are united on the proposition"
 Alabama Needs More Money.
 Col. John W. Tomlinson: T am in favor of a repeal of the law taxing for Aign loans. Alabama needs more money