The Birmingham age-herald., 1915-08-13
Senate Committee Springs
 Sensation in Amending
 Measure as Regards Tax ation of Foreign Concerns
STEEL CORPORATION
 AND RAILROADS TO < OFFER OPPOSITION
As Climax to Sensation Com mittee Changes House Bill and Renews Fued Between Governor and Lobby
By HUGH W. ROBERTS


 Montgomery. August 12.-tspeciaIo
 The senate committee on finance and
 taxation. considering the revenue bill.
 precipitated n sensation this morning
 ny amending section which will suit in more than doubling the fran
 chise taxation of foreign corporations doing business in Alabama In conse-
 quencc, the Louisville and Nashville,
 and practically every other railroad
 company operating lines in Alabama.
 the United States Steel corporation and
 tude are preparing to exert strenuous opposition in order that blow re-
 sarded by them as fatal might he
 avoided.
 As climax to that sensation, the cont mittee amended the bill respecting the manner in which the members of the state board of equalization shall be se
 cured, and in doing renewed the old feud between the prohibition lobby and the governor As is remembered, the house defeated the effort of the lobby and the recess committee on finance and taxa ton to deprive the chief executive of his appointive power. Despite that fact, the senate committee this morning amended the work of the house so that the ap- pointees of the governor before becoming officials in fact must acquire the con firmation of the senate.
 
 Exemption Features Respecting the exemption features, the cofnmittee Aas not as yet taken Anai ac-l ton. It is known, however. that the clauses exempting infant corpora tions from taxation for a period of 10 years. will be stricken. and one of two substi- tutes. proposed in the nature of a com promise, will be adopted
 The work has progressed to such a point that it is certain that the entire bill by
 midnight tomorrow will have been com pleted and will be ready. not for sub mission to the senate but for submission to joint caucus of house and senate members.
 A Drastic Change By far the most drastic change proposed by the committee is that affecting the franchise taxation of foreign corpora tions As is known. such corporations at pres ent pay taxation on a graduated scale beginning with 50 cents on the 5000 until a valuation of $50O0o is reached and de- scending therefrom until on the final 5000 of valuation the tax is comparatively
 small When the committee reached that
 section of the bill which was in effect q duplication of the law presently existing. the members were perplexed between a deserie to serve the state and at the same
 time refrain from proceeding unjustly against the corporate interests. It is re- ported that the committee in despair ap- pealed to Charles B. Teasley Montgom- cry expert on taxation, and that this gen. tleman advised the committee to fix the franchise rate at $1 on the 5000 fiat, a figure which adhered to would more than double the sum of money which the state from this source has in previous years collected
 than the committee adopted his sugges- tion. The corporations, in the meantime, had obtained an inkling of what was | about to transpire, and got before the committee with serious protests. It is 1 understood that today representatives of dlt lofelSH corporations uOlHS DuS1ne6S Tn Alabama will appear before the commit tee and endeavor to prove that the plan proposed would deny them of profit and Il | reasonable return on their investments Action Causes Surprise That the committee took such action as to guarantee a renewal of the strug- gle for power between the governor and
 the prohibition lobby, caused unusual sur prise. From the very beginning, as is remembered. the majority faction of the legislature has endeavored to deny the | chief executive of his right to appoint the members of the tax commission changed by the bill to board of equalization. When the house committee considered the bill the majority faction was worsted in this respect. and the measure was so amended | that the governor without restriction was given the right to appoint
 | On the floor of the house substitute was proposed under which the appointees
 of the governor were required to receive the approval of the legislature. The l friends of the administration, rallying mo- l by. overwhelmingly defeated this sub stitute and the bill passed the house in | such manner that the governor was not l deprived of any of the right which other l governors have exercised and enjoyed. It was the general presumption that no {! further attempt to slap the administra- ton would be made. However, the senate
 committee. as soon as it considered the
 section providing for the state board of
 equalization, renewed the struggle. It was first proposed that the members of
 the board be elected by the people. The i friends of the administration endeavore1 1 to defeat tEis plan, and were successful only to the extent of sc rearranging the l bill that whereas the governor might name
 the members of the board 1t would be
 necessary for his appuintees to be con firmed IS members of the state board of .uualization.
 l On the subject of exemptions the com mittee as reported, has stricken the clauses which protect infant industries for period of 10 years. At the same time the committee Is apparently upwill-
 ing to proceed in such manner as tt pre- l vent the completion of such gigantic prop tCs.tiaued ea Pare Thrse)