The Birmingham age-herald., 1915-07-21
Weakley Says Birmingham Is Shortsighted in Harass- ing Further Interurban
 Development
UTILITIES ENTITLED TO SAME PROTECTION
 GIVEN INDIVIDUALS
Says Exaction of Fifty-five Thousand Dollars Is Leving Tribute on the Company Instead of
 Levying Taxes


 lending the report of the legislative conn mittee on finance and taxation, comes out squarely against the levying of "trib- ute" instead of levying "taxes' against the Birmingham Railway. Light and Power company by the city of Birining- ham.
 He thinks the levy of license of s55,ooo against this company cannot be defended as reasonable and believes any court be- fore which the question were laid would set it aside as ''unreasonable.''
 In letter to The Age-Herald Mir. Weak ley says double taxation Is being prac- ticed and that this is shortsighted policy. as tending to, discourage further investment of outside capital in inter- urban lines, which are so badly needed for the development of territory contigu- ous to Birmingham.
 He thinks 1t fair and right that public utilities should have the same measure of legislative. protection that is accorded to the individual. and maintains that this policy will cause Birmingham to have line of conduct heretofore pursued so Nlgorously py MT WeHtneriy.
 MT. Weakley writes:
 To the Editor of The Age-Herald:
 Further replying to the card of Mir Weatherly in the recent issue of your paper, attacking the renort of the recess committee on finance and taxation, with particular reference to that part of the report which relates to the license tax which a municipal corporation may exact from public utility, have to say:
 Species of Double Taxation
 There are many men in this state who believe that the levylng of an intangible tax upon public utilities followed by a license tax upon the same property, is a species of double taxation, While not inclined entirely to this view. 1t has ap- peared to me as a result of my investiga- ton into conditions throughout the state of Alabama, that the public utilities which are so necessary to the development of this state, are having great difficulty in paying their operating expenses and meet ing interest charges.
 And so great has been the effect of the attack made upon these companies by politicians seeking to ride into public of fee upon such issues, that it has become almost impossible to procure money from investors either to promote new utilities or to extend and enlarge those which have already been constructed According to my mind. the levy of license of 5.00O against the Birmingham Railway, Light and Power company cannot be defended as a reasonable exercise of the power to tax or the power to regulate. In my opin- ion. any court to which the reasonable ness of such license might be submitted would unhesitatingly set 1t aside, as being unreasonable.
 Fairness to Both Sides
 consider the action of the city govern ment of Birmingham in imposing this license as the levying of tribute and not the levylng of taxes. 1 have attempted to view the proposition from the stand point of fairness to the people and fair ness to the street railroad company. For it must be remembered that as member of the legislature l am to represent all the people and all the property holders. In my opinion, the limitation upon the amount of license which, under the pro- posed bill can be exacted from any public utility affords ample latitude for the req soneble exercise of the power to license and to regulate.
 Recognizing the fact that the city Is entitled to the larger part of such reve- nue, the committee fixed the state license at 1 mill on the gross receipts and the city license at 10 times that amount. Just at this point it may be well to note that the state and county license imposed upon such utilities as the Birmingham Railway, Light and Power company Is a decided increase over the license tax heretofore charged. And there is reason for this The committee viewed this matter from the standpoint of the state of Alabama, as well as from the standpoint of the city of Birmingham. and expression was given by members of the committee to the Idea that the exorbitant license tax charged by the city of Birmingham against the Birmingham Railway, Light and Power company operated in a meastre to deprive the state of Alabama of its just portion of the taxes paid by that company.
 Has Not Had Fair Treatment
 shall here take occasion to say that, in my opinion, the Birmingham Railway. Light and Power company has not re- ceived fair treatment at the bands of the taxing institution In the state of Ala bama; the owners of the property have been compelled to submit because It Is im- possible for them to take up their rails. dismantle their lines and move to some other community. Tn following this course the state of Alabama, and the city of Bir- mingham, particularly stands very much ir its own light. Without the street rail- road company there would be no East isdht, uo WOOQldWH, dHQ Ncst and no other suburb which Is now built up by reason of the rapid transit and 5-cent fare furnished by this company.
 Not only has it created values largely In excess of the value of the company itself. but 1t has q large field of operation for future usefulness. The city of Bir- minRham can never become metropolis until interurban lines reach out to Jasper to Gadsden, to Anniston, to Talladega and to Tuscaloosa. and somewhere out side of the state of Alabama wffi have to be found the capital to make these improvements. and the nucleus of such a line must be, in the nature of things. the street railroad which Is now operating in Birmingham.
 If our politicians continue to mako the public utilities the peculiar objects of their assault and hamper their develop ment, by unjust discrimination and bur densome taxation, how do they expect to persuade outside capital to come into Ala bama and develop this community? Un- der the terms of the license schedule which we have submitted to the legisla- ture a license tax of S2,b00 can be charged by the city of Birmingham to the street railroad company. If there should be any contract existing between the street railroad company and the city of Birmingham calling for . larger pay ment. aB<has been suggested. the proposed law in no way can interfere with such a contract. ..1' ..
 In addition to this. the state can levy . license tax of }l250 and the county .