The Birmingham age-herald., 1913-05-25

and be married. The ceremony took
place in hotel, and Mrs. Adler saws
that Mr.. Adler produced a marriage
license, after which he introduced a
man supposed to be the minister. who
performed what she believed was a real
ceremony. Later when she found out
that her marriage was not genuine she
took her case to the courts and produced
Miss Bessie n Moore, Of New Bedford.
Mass, who Witnessed the wedding. to
give testimony. She asserts that her
husband has an income of $4,000
yearly
adopted it. The new plan was put into
effect at once, and is as follows:
The state reserves for state taxation
those properties which derive their value
from privileges granted by the state. and
leaves to the counties and cities the right
to tax local property for local purposes
exclusively
The California Plan
Practically it was worked out by levy
ing taxes for the state:
Il ON the operative property of rail-
road companies including street railways,
at per cent of their gross receipts an
nualy.
2. On the property of sleeping car, and
all other ear companies at ) per cent OF
then 81 oss profits annually.
3. On the property of express COM
panes at . per cent of their gross re-
ceipts annually
4. On the property of telegraph and
telephone compal -es at Sia per cent of
their gross receipts annually.
D. On the operative property of light,
heat and DDwpr cOfnpanie a per cent
on gross receipts annually.
All the non-operative property of the
above corporations is left subject to local
taxation.
6. On insurance companies at ~ per
cent of gross premiums.
I. On banks at 'ix-tenths per cent on
capital surplus and undivided profits,
less their real estate, which is subject to
local taxation.
s. All franchises other thanasthose in
cluded above are valued and taxed per
cent ad valorem.
All real and personal property neces-
sary to the operation of any of tho above
public service corporations. you will un-
derstand pays no local taxes whatever;
and all other real and personal property,
however owned, cannot be taxed for state
purposes
IT is. true that the amendment provided
that if the revenues above provided were
not enough foI the state, the state could
then tax all property ad valorem to make
up any deficit. But the revenues so pro-
vided proved to be sufficient
Applied to Alabama
Let us now apply the plan to Alabama
as well as we can from data in the state
auditors report for 1912.
The state of Alabama received from
the counties upon a total assessment for
1911 of $500 904. 161 (see p. 4S5 IF auditors 8
ad tFaln tax inn, 70
| SO, as5,sl6 (see p. 50 of auditors report.
Let us see then, If the state can raise
that amount from the sources reserved
to the state by California, and not in
crease the taxes on those sources beyond
what they now are in Alabama. OF
course We cannot be exact. because taxes
upon all intangible property of corpora
tions in Alabama are now based on an
estimated valuation while the California
plan is to tax their gross receipts, but the
result may be the same.
The item of valuation listed by the state
auditor on pages 4Si-5 of his report in
clude all the subjects of taxation as now
classified. and the items numbered from
q ton to the end, except item 30, invest
ments in bonds, represent approximately
the franchises and intangible properties
of public service corporations which will
be reserved to the state. These total
Sl55 S96, 151. And as these would not be
subject to county taxes. the state might
tax them at least l.3O per cent without
increasing their burden. THAT would yield
$2,026. $50.
Next the state would get the extra 80
per cent on all licenses, now given to
the counties, making S21O.000 tsee page
4S0j. These two items alone make So
236,650 and leave only Sl.149.266 to he
raised to make the state whole. and
none of the operative real estate of pub
| II. v..ri.
considered, including lands owned in
fee for depots, yards, offices and the
like, which are included in the totals
or real estate assessments on page 43l
of the report. Moreover on much OF
this property both tangible and intang-
ible. the state taxes could be raised 10
an amount equal to 230 per cent since
the cities which hitherto taxed part
of it will no longer be allowed to tax
IL at all.
so 1T is clear that neither the state
nor the public service corporations will
suffer by making The change
Now how about Jefferson county and
Birmingham?
The real estate assessment of Jei-
ferson county for 1911 was s12,561. 46a
outside the towns, and $3.50, 0,SOos52 in
side the towns (see page 4S7) and the
assessment of personal property other
than the items above reserved for the
state. amounted to S6.156391 tsee page
4s2 ct seq.), making a total assessment
Tor county taxes of $S0,l24,706. from
which must be deducted the operative
real estate of public service corpora
tons, say $5,o00,O00. leaving about s75,-
oOO,O 900 In all. But the total assess
ment from Jefferson county for 1911
was only s102,362,005 obtained by add
ing the items from pages 4S6 to page
oo2). Therefore as the county and
cities would receive all the taxes on
this S75O0O.000 none of them going to
the state, the county and cities (Bir-
mingham and Bessemer) would seem to
be whole. And if that is not enough
TO defray local expenses reasonably in
Cured, would it be hard to get the
public consent to increase the taxes for
local purposes only?
four committee recommends the ini-
| tiatfon of campaign throughout tho
state for the adoption by Alabama of
the California plan, and further recon :
mends that this chamber request Gov
| ernor O'Neal to appoint a commission to
work out the plan in detail and to pre-
| pare a constitutional amendment to he
presented to the legislature at its next
| session. as the Legislature alone can
submit constitutional amendment to
the people Respectfully submitted,