The Montgomery advertiser., 1907-04-15
REAPING A BAD HARVEST.


some EuectS OI lteCent LeEhetae
 tion.
 The annual meeting of the Commer- cial Club of Birmingham was held last Friday. The report in The Birming- ham Age-Herald was quite full and in teresting. After giving the names of new of1Icers committees etc, 1t con- tinued as follows.
 The principal feature of the meeting yesterday afternoon. outside the noml nation of new officers, was discussion of two legislative pills recently enact cd by the Legislature in reference to the taxing or foreign money lending concerns
 The matter was brought up by Henry P. Howze and created lively discus sion among the members, which re- suited in a motion by f. II. Notion that the matter be referred to the LeyIsia- tive Committee with instructions to take up the question, and If possible secure the repeal or modification Of the measures, on the ground that the effect of the laws would be very detri- mental to the business interests of the people of Alabama.
 NlT. Howze stated that the bills In question exacts a tax from foreign loan companies that Is practically prohlDi- . tive, and explained that if the com panies continue business the people will have to pay the tax and not the corporations. The laws. as explained by MT. Howze, require tax ot $7 OH the first $1.000 and Sl on each subse- quent $1,000 loaned in the State The other bill referred to taxes annually the money already loaned in the State ut the same rate.
 A. R. Dearborn said that the Equit- able Insurance Company had arranged to open an office in Birmingham through which it had intended to place something like million dollars on real estate securities at low rate of interest. but had abandoned this movement on account of the passage of the bills In question. He stated further that 1t was his opinion that other companies doing business in the State would withdraw and might possl- 1bly foreclose the business already Tn the hands of the Alabama customers which would bring ruin to many invss- tors.
 T. H. Motion said that it was his opinion that nine -tenths of the build Ing done in the Birmingham district Is done with borrowed money, and to deprive the district of the means of securing money at cheap rate OH long time would be a serious calamity to the business and industrial interests 5 of the district.
 W. P G. Harding said that the Leg tslation was short-sighted and unwise He explained that these companies pro vide money for development at a low rate of interest for long time, business that the banks cannot handle and that placing a 2rohibitiVe tax on the busl- ness would work a great hardship on the people who would have the tax to pay if the companies continue business. MT. Harding stated further that the matter s one of the most important ever considered by the club. and one that demands careful and early consid- eratiOn.
 R. N. Rhodes gave it as his opinion that Governor Conner would himself favor the repeal of the two bills if the matter Is properly brought to his attention.
 On motion of T. IT. Motion, the ques- tion was referred to the Legislative Committee with Instructions to take 1t up at once and see what could be donp in securing a remedy.