The Birmingham age-herald., 1914-06-27
METCALFE LEAVES
 SHER|FF'S OFFICE

Manage Camp Transfer
 Company
 The resignation of Chief Deputy Walter
 L. Metcalfe has been accepted by Sheriff
 Walter K McAdory to be effective at
 once MT. Metcalfe has resigned to ac-
 cept the management of the Camp Trans
 fer company and will enter into his new duties Monday
 Mir. Metcalfe became member of the
 sheriffs force in January, 1911, when | Walter McAdory assumed office He was appointed chief deputy soon thereafter,
 and has held that position since. He is
 known throughout the southern states as an efficient and brave officer and his resignation was accepted with regret.
 not only by the sheriff, but by the entire force
 | It is understood that Mir. McAdory will | manage the office himself during the few l months remaining of his term In refer | ence to the resignation of MT. Metcalfe
 Sheriff McAdory stated that he much re- gretted the fact that their business and official relations were to sever but that in the new line of endeavor undertaken | by him there were greater possibilities of | success than by serving out the few months that remained of his term. He wished him every success In his new un- dertaking
 provision was again expressly restored to the code of 1907, together with provisions | requiring a privilege tax on mortgages | and exempting the latter from any ad | valorem tax.
 The Present Law
 "The present code distinguishes between | credits secured or established by instru- ments (mortgages, bond for title, etc.) and | other credits. According to the terms of the present law. the former are removed entirely from the field of ad yalorem taxes in lieu of which is to be exacted a revenue tax in the nature of registra- tion or privilege tax estimated on a basis entirely different from ad valorem taxes. | After deciding in Barnes vs. Moragne 1903 which substituted revenue tax on mortgage debts and eliminated all taxes whatever upon solvent credits. the opinion | of Judge Tyson unnecessarily proceeded to suggest that a classification is arbi- | trary and invalid which imposes a prop l recorded mortgage, and exempts credits secured by recorded mortgage.
 1 T doubt both the soundness and effect | of Judge Tyson's conclusion. If not fol- | lowed in construing the present code, the result will be that both mortgage tax and the ad valorem tax on solvent credits, and the exemption of recorded mortgages from | the ad valorem tax will be sustained My conclusion is that the legislature had the | right to make the classifications. But, as- suming that Judge Tysons conclusion will be followed, 1t will result that the exemp- | tion of recorded mortgages from an ad valorem property tax will be declared void, leaving mortgage debts to be as sessed on an ad valorem basis, or else the provision taxing solvent credits on an | ad valorem basis will be annulled. If either of the two alternatives becomes necessary, as a result of a ruling that the classification is so arbitrary that it can not be sustained upon any rational theory, I am definitely of the opinion that it | would be the mortgage tax, rather the exemption of recorded mortgages, from | ad valorem taxes, would be annulled, rather than the property tax on solvent credits. The generic class is included within the words. "sovent credits credits of value" Of this broad class. i credits secured by recorded mortgage, constitute but a limited group, and, as
 
 | ited class of recorded mortgages from the more comprehensive class of moneyed | credits, rather credits of value, Is 1 contained in separate sections of the code, all of which were contemporaneous | ly enacted, it would follow that invalid distinction in favor of recorded mort gages would be annulled, leaving in full | force and effect the, ad valorem tax on moneyed credits or credits of value, and embracing every form of credit properly | falling under that classification. | In view of the decisions of the United States supreme court in the Louisiana tax cases there can no longer be any doubt of the right of the state to tax moneyed credits of foreign corporation or citi- zen when arising out of business trans acted within the state The cases referred | to are, Liverpool, etc.. Co.,, vs. Orleans, 2O5 395 51 L. ed. S53: Orient Ins. Co. vs. Orleans, 221 U. 8. 35s, 55 l.. ed 769; Metro politan Life Ins. Co., vs. New Orleans, 2O5 U. 395, 5t L. ed. s53 state vs. Compton, National d'Escompte. 191 U. s. 3SS. AS L. ed 232; New Orleans vs Stempel, 175 T. s. 3O9, A l.. ed. IA; Bristol vs. Washington l Co., 177 U. s. 133; l.. ed. 701: Bertron, Griscom & lends vs. New Orleans. 59 South. 1e.
 Procedure
 l In view of the announced intention of a number of taxpayers to contest the 1 validity Of the code pruVlslon tdNinB credits and to protect those who desire | to reach an agreement with you as to the amount of the assessment. provided the tax is sustained, suggest that you enter Into written stipulation, with such of the taxpayers as desire, to the effect that | you may report an assessment as Of July on an agreed basis for the tax years involved, provided that in the test cases the supreme court shall sustain the va- lidity of the assessment as against the class of taxpayer involved. In order to prevent the running of the statute of lim- itations for one of the years involved. 1t will be necessary that the assessment be certified to the board of revenue as against all the taxpayers who may not agree conditionally as above suggested. also think that if the tax is not sus- tained. the taxpayers who have already agreed should have the benefit of the same agreement. if they desire it. Yours very truly, FORNEY JOHNSON. Those paying tax on solvent credits during 1913 were as follows:
 w A. Abrams. $SO0; Acme Laundry Co, $30O0; Advance Lumber Co.,, 5000; Barber & BrOQ- H1000. Tobu Rea