Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1909-06-18
STATE TO RECOVER
VALUABLE LAND
Gov. Smith Will Recommend That
State Institute Proceedings to
Recover 8 Acres Decided to
N, G. g. st. L. for $4,000.

Governor Smith will recommend. in his
parting message to the legislature. he
institution of legal proceedings to recov-
er from the Nashville. Chattanooga and
ST. Louis railroad eight acres of land in
the heart of Chattanooga, which was
decided to the railroad In 1850 in consid-
Grafton of a payment OF $1,000. The prop
erty is now worth at the lowest estimate
million and a half dollars, and, ii is
believed the state can easily recover in
the courts, IL her claim is not barred by
the statute OF limitation.
Governor Smith, Attorney General Hart
and special counsel engaged by the gov
ernor TO assist the attorney general have
given the matter careful study, and the
governors Recommendation in his mes
sage will hinge upon data that has been
thus gathered.
WHERE LAND is LOCATED.
The land in question is located opposite
the Reed house, in Chattanooga, the
Nashville. Chattanooga and st. Louis
railroad collecting the rentals, and using
the remainder for freight and passenger
terminals.
The chancery court of Tennessee has de-
clared. I'm an opinion, that the railroads
title TO the property is invalid, and suit
might have been instituted long ago, eX-
eept for a continuing combination OF cir
cumstances which prevented. Governor
Smiths Investigations have, II Is said,
convinced him that the state should pro-
coed at once to assert her rights, and on
this account he will urge the legislature
to have suit instituted.
The title to the land has been claimed
BY the N. c. & st. L. railroad since 1850.
when, for 5000. the then governor of
Georgia executed a deed to the property
In favor of the railroad
AS long ago as 1896, the states atten-
ton was Officially invited to the proper
ty w. A Wimbish, special counsel for
the state at that time, called attention TO
the fact that the conveyance was with
out authority, and that the state could
recover the land. Suit was not entered
at that time. although the Legislature had
the matter before it. Shortly thereafter
Mr.. Wimbish retired as special counsel,
and the states claim was not pressed.
GOVERNOR SMITHS ACTIVITY.
Shortly after his inauguration, Governor
Smith, in keeping with his general poll
CIV of familiarizing himself with the
states property and interests, riveted his
attention on the Western and Atlantic
railroad. Hon. Hooper Alexander, of
DeKalb couny, was engaged by the gov
ernor TO investigate the title to the eight
acres of land In Chattanooga, now worth
so much.
Mr.. Alexander's report indicated that
the state had a valid claim to the eight
acres OF ground. and Governor Smith,
last summer, communicated these facts TO
the legislature Subsequently, the gov
ernor and the attorney general have
been investigating the question.
The only possible doubt as TO the states
right to recover the property hinges up
on the statute OF limitations. There seems
II. Ttavzy,
statute would bar the right of the state
of Georgia to recover. In the study of
this question. a Tennessee lawyer OF ac-
knowledged ability. has advised with the
governor and attorney general, while At,
torney w A. Wimbish. of Atlanta, has
also furnished invaluable assistance in
the preparation Of the matter. >.t-
Will Sue w. & A. for $125, 900
Suit in the name of the state against
the lessees Of the Western and
Atlantic railroad for back taxes over
period of 10 years has been prepared BY
Attorney General Hart and Special Coun.
sci Hooper Alexander, at the instance of
Governor Smith and will be instituted this
week in the courts of Fulton county The
states claim, including interest. aggre-
gates $125.OO0
The suit involves two distinct claims
an ad valorem tax on personal property
and a tax upon the net income OF the
property.
Under the terms of the lease, IL is pro-
yided that the lessees shall pay to the
state a tax of one-half OF one per cent
on the net income of the Western and
Atlantic railroad and an ad valorem tax
on the personal property used In the oper-
alton of the road. t
IL is the contention of the state, thanks
-
Smith. that the lessees have never paid
any taxes upon personal property, while
the net income has been so Juggled as to
reduce this tax far below what II really
should have been.
Beginning last fall, the governor insti-
tuted an investigation which satisfied him
that the lessees In their tax returns did
not disclose all of their property and 9TH
er pertinent facts. A long correspondence
with representatives, of the lessees ensued
AND finally an additional statement was
filed by the lessees. This, however, was
far from satisfactory.
1t is believed practically certain that
the rolling stock, equipment. etc, which
comes under the head of personal prop
erty, and which is and has been used by
the Iessees in the operation of the w. and
A. is worth, at the lowest estimate, one
million dollars. The back taxes on this
sum would. 1t is believed, net the state
about 100000.
The net income of the w. and A.. II Is
believed, has never been fairly represen'
ted in the returns. 1t has been minimi.
mized by operating expenses" etc..
which were. in fact. not legitimate, and
I'm this way the state has lost many thou
sands OF dollars in faxes. ..
The suit which has been prepared by
Attorney General Hart and Attorney
Alexander sets forth these facts fully,
and the state expects to establish, in the
courts the nistice OF the claIm-and II