The Montgomery advertiser., 1908-10-10
ROADS FIGHT
 THE NEW TAX Coast Line Makes Claim of Unconstitutionality TAX IS ON THE FRANCHISE The Road Claims Its Domestic
 Rights. state Says Road Wants To Be Foreign corporation in Federal Court and Domestic Ceroporatiop In State Court.
TAX IS ON THE FRANCHISE

Arguments in the case of the At iantic Coast Line Railroad ys. J. B. Gaston. probate judge of Montgomery county, in the matter of the contested payment of the new franchise tax of approximately s10,0o0 in the case in- voived. occupied the entire attention of Judge A. D. sayre, sitting in the Civil Division of the Cty Court, Fri day morning and afternoon.
 The cases of the Louisville and Nashville the Seaboard Ar Line, the Central of Georgia and the Louisviile Property Company against the probate judge on the same question were all upon the docket for the day. but on ac- count of the similarity in the com plaints, the court was informed that no arguments would be indulged In but that adverse complaints would be submitted.
 the complaint of the Atlantic Coast Line road not contained in the com piaints of the other roads, attorneys for the State and the roads announced that ths matter would be argued
 H. C. Selheimer opened the argu- ment for the State on the demurrers submitted to the court, He contended that the, Atlantic Coas Line was not by any means a domestic corporation as was set up in the complaint ot the road. It was contended that the Att lantie Coast Line could not take unto itself a dual capacity in that in one instance 1t claimed to be a foreign corporation and in another instance lay claim to the fact that it was Q do- mestic corporation, He contended that the road could not go into the United States Court as foriegn corporation, and then claim in State court that it was at the same time 6 domestic corporation.
 The railroad claimed that 1t was a domestic corporation in that 1t was but a consolidation Of the Alabama Midland Railroad. the Abheville Rail- road Company drganised under the laws for domestic corporations of the State. of Alabama, and the Savannah. Florida and Western Railroad, organ ised under the laws Of Georgia. That such consolidation makes the new road, the Atlantic Coast Line, for. eign corporation was the argument Of the State.
 NJ. c. Hall. for the road, followed Mr. Eeihelmer at the opening og the afternoon session of the court. Mr. 6el. heimeg having taken all of the time at the opening session.. MT. Hall claimed that under the existing circumstances the Atlantic Coast Line was Q corpora ,tion under the laws of the Stato and therefore a asdomestic corpofation, as it did no business in the State excepa under the charter of the consolidated Alabama railroads making up the new road.
 Tn support of his argument Mir. Hall cited several lengthy decisions fof the Supreme Court of Iliinois in which he showed that such c consolidation of railroads in two different States did not deprive the consolidating roads of their rights as domestic corporations. That the decisions expressly stated that each such road retained its domestic corporation privileges and obligations in each of the States represented.
 At the time of the adjournment for tho day. Mr. Hall was concluding his argument, It is probable that attor- neys will finish their arguments on both sides today. and that Judge Sayre win take the case under advisement during the afternoon.
 Attorneys present at the hearing yesterday were: For the state, Att tofney General Garber. II. c. Selh elmer, of Birmingham, and Judge s. D. Weak ley, of Birmingham. For the railroad; ". F. Kay. assistant general counsel for the Atlantic Coast Line with headquarters in Jacksonville. and N. c. Hall. of Petersburg. Va.