The Birmingham age-herald., 1914-06-27
Denies Any Attempt at Dis crimination Against lief
 fersOn County Citizens
WILL COOPERATE
 IN TESTING STATUTE
Willing to Enter Into Any Reasonable Agreement-s2, ,OO0, ,O00 Assessed in 1913 in Chambers
 County

sioner of Jefferson county, in an in- terView states that he is perfectly will ing totenter into any reasonable aeree ment with the tax payers to test tba validity of the law relating to solvent credits He states that his actions in this matter are in accordance with a general order issued by the state tax commission to every tax assessor and tax commissioner throughout the state requiring the assessment of these cred it's.
 He denies that there is any attempt at discrimination against the citizens of Jefferson county and cites Chambers county, where over $2, ,000, 900 of solvent credits were assessed for taxation for |1913
 In reference to the assessment of solvent credits Captain Allen made the following statement:
 Allen Issues Statement
 Tn assessing solvent credits. I am acting under specific provision of the code, which I am advised has been in effect almost continuously for about 50 years.
 The state tax commission, learning that there was some sort of impression abroad that solvent credits were not to be taxed, has issued a general order to all assessors and tax commission CTS or the state requiring the assess
 heht or that item. The tax reports show that in Chambers county alone. over s2,O00,000 of solvent credits were assessed for taxation for 1913.
 T have no desire to make the law operate as discrimination against the cltizens of Jefferson county, and am perfectly willing to enter into any reasonable agreement allowing a test Of the statute, if the tax payers desire to test its validity. The trouble is that decision could not be obtained from the supreme court before the statute or limitations would run against one Of the years involved. For that reason 1t will be necessary for all those who deslre to agree upon the amount of their taxes, conditioned upon she SUI preme court sustaining the tax, to en- ter Into an agreement that the assess ment may be entered as of July l. pro Vided the supreme court shall sustain the tax in the test cases. to be imme- diately instituted and appealed to the circuit court.
 Agreement Is Necessary
 "Of course, l will make tie same agreement with those who have all ready made their escaped assessments to me, giving them the same rights. In the absence of some agreement of this nature it will be necessary for me to turn the escaped assessments over to the tax assessor as made.
 T am perfectly willing tl enter into an agreement of this kind, and will withhold any certificate of escaped taxes against those who prefer to enter into this conditional agreement. In the case of those who do not care to agree, it will be absolutely necessary for me to report an escaped assessmenl to the board of revenue as required by law. Otherwise, as I have stated, the statute of Limitations will bar the tax for one of the years invloved. Of course, this is conditioned on the prosecution by tax payers of the necessary test cases and l will be glad to enter into some plan which will allow the test to be made with as little expense and confusion as possible to the tax payers. which will be consistent with the interests of the state.
 Tt is a mistake for the public to as- sume that moneyed credits have not been assessed in this county. A large number of the tax payers have made the assessment and all of the assess ment blanks proV>7, for the tax and re- quire statement ,nder oath of the tax payer as to his solvent credits"
 MT. Allen yesterday gave out the fol- lowing letter from Attorney Forney John- ston:
 Birmingham, June 26, 1914.
 J V. Allen, Esq, City:
 Dear Sir-1 am in receipt of your ad- vice to the effect that the state tax con- mission has issued a general order re- quiring the assessment of money lent, sol vent credits, etc, and asking for my opin- lon as to the legality of the assessment, and as to its scope. l beg to advise you as follows:
 HISTORY OF THE ACT.
 Section 2os2. subsection I Q) of the present code provides that all money lent. soivent credits or credits of value ex- cept mortgage debts on which tax inn posed by law has been paid, shall be taxed on an ad valorem basis A similar pro- vision has been in force in Alabama for heariy 5o, years, and Is found In the tax system of many of the states. The gen. eral right of the state to tax solvent cred its, secured or unsecured, or any asset, tangible or Intangible. and subject to it's Jurisdiction Is beyond question The su- preme court of Alabama has suggested ;ts reluctance to interpret any, tax schedule as emitting the important item of solvent credits, which were estimated to consti- ute quarter of the taxable values of the state.
 'The validity of the tax law has been repeatedly upheld in Alabama. I find that the legislature of 1867 passed a revenue law taxing all solvent credits bearing in- terest and allowing the indebtedness of the taxpayer to be deducted From that time to the present day, with brief inter- vals resulting apparently from oversight or unconstitutional enactment, a similar revenue provision has been in force and three constitutions have been construed favorably to the provision. The difficult question with the legislature seems to have been expediency of authorizing the taxpayer to deduct his indebtedness from his solvent credits. The original act of 1867 authorized the deduction. The reve- nue system of 1867 authorized the deduc- tion. The revenue system of March, 1875, contained substantially the same pro- vision. A similar provision adopted by the legislature of 1883 was held invalid on account of variance between the act as passed and as presented to the gov ernor for approval; but the act promptly carried into the code of 1886 with no judi cial attack upon its sufficiency So, in the code of 1896 we find the, same provision without allowing the deduction of the in- and this provision of the code of 1896 was continuously in force until sub stituted by the revenue act of 1903 which was construed as repeating the tax on sol vent credits (Tyson. Haralson. Simpson and Anderson concurring; Weakley. Dow dell and Denson dissenting). Hence, from March, 1903. until the adoption of the code o< 1907, effective April l. 1908, by ma iOrity decision. 1t was held that there wa q