The Birmingham age-herald., 1914-02-20
B|BB COURT HOLDS
LEASES OF MINERAL
LANDS UNTAXAbLE
Decision Rendered Yester-
day at Centreville on APP
peal of Coal Companies
From Tax Commission

The Circuit Court of Bibb county at
Centrevlle yesterday rendered a judg-
ment for the defendant In the cases
against many coal companies filed by
the state tax commission In an effort
to assess leases on mineral properties,
the state tax commission tried out III
Bbb county what was to have been a
statewide effort to make leasehoders
of mineral property pay taxes on the
leasehold as property. The taxes already
fixed in Bibb County exceeded $1,000, 600.
The cases determined was against the
Bessemer Coal Iron and Land company
which concern was assessed by the com
mission s1.SO0,OO0 and OF the Cahaba
Southern Mining company which was
other companies involved In Bibb county
include the Roden Coal company. the
Galloway Coal company the Red Feath-
er Coal company. the Blocton- Cahaba
Coal company and the Alabama Min
eral Land company. The cases against
the foregoing companies were passed
when the judgment was rendered in IA
vor of the two companies mentioned by
the court yesterday
In the opinion of Borden Burr of Percy.
Benners & Burr, attorneys, who with
representatives of Tillman. Bradley &
Morrow conducted the defense the ruling
there is of tremendous Importance in all
industrial circles. Mr.. Burr Immediately
after his return last night from Centre
vile dictated the following synopsis of
the decision with a reflection as to the
bearing the case decided viii have o,
other cases. The statement of Mr. Burr
follows:
Burr Issues Statement
The circuit court of Bibb county.
Judge b. Nj. Miller presiding. has this
week been considering appeals taken by
nine coal companies from the Judgments
of the state tax commission taxing at.
enormous valuations tho coal mining
leases of these defendant companies. and
in doing so overruling the court of coun-
ty commissioners of Bibb county, which
court refused to make these assessments.
The total amount of the assessmentr
sought TO be made by the state ak
commission exceeded $5oO0,000 Two
cases were disposed of: that of the Beg
semer Coal. Iron & Land company. which
was assessed by the state tax commits
sion for Sl,S00,00O. and that of the Ca
haba Southern Coal Mining company.
which was assessed at about half a mill
lion dollars.
ION the pleadings, Judge Miller held
that these companies could not be taxed
in these cases either for the minerals
or for their improvements and personal
property, upon which taxes had already
been collected. He submitted to the Jury
as the only question to be determined.
the market value of the leases, and this
to be based upon their belief as to
whether or not under the proof these
leases, In the market. would bring more
than the amount of rent that the defei.d-
ants were paying,s as royalty, to their
lessons.
Verdict for Defendants
"The juries, in both cases submitted.
returned a verdict In favor of the de-
fendants-thus holding that the leases
as such. We're of no value. and revers-
ing the judgments of the state tax COM
mission, which had assessed them at
large valuations.
solicitor Thompson and the state tax
commissioner. Henry p. White repre-
sented the state. There We're present
also, in behalf of the state, John
Mooring, chairman OF the state tax cois-
mission.
After these two Verdicts had been
brought in In favor of the defendants
the other cases, which are against tbs
Red Feather Coal company. the Roder
Coal company. the Galloway Coal cou-
pany the Blocton-Cahabu Coal COM
pany and the Alabama Mineral Land
company. were passed by the court to
be taken up on Thursday of next wees,
The attorneys for the defendants claimed
that this is the first serious effort tina
has ever been made in tins state to tax
leasehold interests and that if lease.
hold interests In minerals can be taxed
on the same principle leases on farms.
timber, store houses and other interests
can also be taxed