The Birmingham age-herald., 1907-07-02
COMER STANDS PAT ON LOAN TAX LAW Claims t Is Equitable and
 Must Stand ACTION WAS IMPERATIVE Administration Counsel H. c. sel- heimer Cites Passage In constitu- ton Requiring Foreign Fran
 chise Tax to Be Levied.
ACTION WAS IMPERATIVE

According to the latest information upon l the subject Gov. B. B. Conner has ex- perienced no change of heart with refer ence to the franchise tax upon foreign corporations, and bearing out this posi- ton which he holds it is aid that he 1 will not favor repeal of law when the legislature reassembIaa. Governor 1 Conner yesterday made public letter from John R. Ellis, an Alabama agent 1 for a foreign loan and insurance com pany, in which the writer says that his l company is perfectly willing to remain in the state after becoming thoroughly informed as to the operation of the new law.
 The letter from MT. Ellis, which the governor made public, is as follows: l Montgomery, Ala, June 24 1907 1 ''Gov. B. B. Conner, Montgomery, Ala. My Dear Sir-I have just returned l from Philadelphia and New York l went there for the purpose of meeting my cor | respondents in the loan and insurance business Took the matter up fully with them in reference to our revenue law and insurance as passed by the recent | session of the legislature. After discuss | ing the matter fully with them, they are perfectly willing to continue oper | ations 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 of the law was fully understood that they seemed entirely willing to cooperate with us heretofore. The company in PhIl- adelphia to which l refer is the Fidelity Mutual Life Insurance company.
 With much respect l am, yours very truly, JAMES B. ELLIS"
 Governor Conner in his interview states that MT. Ellis does very extensive bus mess at Selma and comes in contact with q large loaning interest. The rest of the governors statement is as follows:
 His statement will show that if the foreign money lenders understood our revenue bill they would recognize that 1t Is equitable and would not oppose it. l have talked with many business men regarding the act taxing foreign money lenders, and the impression made on me Is, that the proper conception of the same is exaggerated and erroneous, and what ever damage was wrought, was caused by these exaggerated conclusions and statements. For instance, it is now claimed that re-discounts by banks and the placing of paper by banks outside of the state would make the party taking said paper liable for the tax. This of itself would prove a very disturbing fac tor and was never in any sense of the word in the bill
 There is no question that every class of business in the state should help to bear the burden of the state. There can be no surer foundation for equit- able tax laws, and yet there can be no question that under certain conditions this equalization can bring more harm than good. In the present disturbed con Citions of the money markets of the world there Is no doubt that any disturb ing factor In the state would be ill-advised and I am sure that no member of the legislature ever contemplated in the fix in; and making of the revenue bills that any harm should be done any interests in the state
 'It is great pity that the revenue measures had not been thoroughly stud fed, exactly stated. and then if anything was wrong or thought to be wrong, proper presentation of the question could have been made, and any mlsconcepton explained and proper adjustments made
 Henry (. Selheimer, a lawyer of Br- mingham, and a member of the consti tutional convention of 1901, is quoted as saving that 1t was not optional with the legislature to enact the recent law, but impera tive. In support of this statement section 232 of the constitution is quoted, as follows
 No foreign corporation shall do any business in this state without having at
 least one known place of business and an authorized agent or agents therein ana without filing with the secretary of state q certified copy of its articles of incorporation or association. Such cor poration may Se sued in any county whore 1t does busir ss, by service of pro- cess upon any agent anywhere in the