The Birmingham age-herald., 1915-08-10
SENATE MAJORITY
 OPPOSES EXEMPTION
Delegation From Northern Alabama Will Again Visit Montgomery This Week in Behalf of
 Power Enterprise
SPEAKER CARMICHAEL
By HUGH w. ROBERTS


 be of aid to the people of his county and section in furthering the project having for its object the chaining and development of Muscle Shoals, n proj- eet in which the people of the Ten nessee valley are so deeply and vital ly interested.
 But for the fact that I thought
 could do this work, and make of my
 section modern Garden of Eden
 and Incidentally bestow a great and
 lasting blessing on the state I would
 not have been candidate said the
 speaker. And had the people of Col
 bert county not been convinced that
 l could aid them materially in trans
 forming their hope into reality. could
 not have been elected.
 Men who were engaged in the liquor
 business in Sheffield gave me their
 support. They were of the opinion
 that the completion of the Muscle
 Shoals project was of far greater im-
 portance than any issue on which we
 might have been divided"
 OONtrdCC OI QOnOT
 The speaker agrees with a statement made some days ago by MT. Rogers of Sumter to the effect that the question of exempting a corporation from taxation was one so nice that men could differ without arousing the suspicion of the sus- picious
 Tt is a question as important in many respects as the tariff and one on which there can be no unanimity of opinion, ' continued the speaker. Years ago the legislature fought this battle. At that time men honestly differed, some being of the opinion that if corporation be exempted. citizen should be, and others adhering to that school of thought which holds that the state should take steps which would lead to the induction of new enterprises, the building up of whole sec- tions, the increasing of populuation, and the amassing of great wealth. At that time the question, Shall we exempt for a few years certain corporations from taxa tion in order that in the future property of great taxable value might be buided was asked and answered.
 Tt was concluded to exempt. As the result of the exemption clauses, certain capital has entered Alabama for the pur- pose of developing. The state is under contract with this capital. It can no more voluntarily break that contract, an ar engagement of honor, than 1t could with honor repudiate bond"
 Senate Is Perplexed
 On the problem of exemption. the sem f< bafA s<1. fhr l.tI tC pending, is "up in the air" Apparently a majority of the members are opposed to the exemption clauses of the bill. However, like the governor that major ity would see the state carry out any contract in which, through the operation of its laws, it has entered into. Would it be wise. the majority Is asking itself, from an economical standpoint to ex- empt a corporation from taxation for a limited period, and subsequently thereto collect for the state taxation on $20.0 . 600 of values? If, in other words. the Alabama Power company were forced to abandon a project in which with the federal government it has entered in partnership, would the people of the state ever develop Muscle Shoals? And the fact that were. the federal government alone to undertake the work, the state could collect nothing in the way of tax ation, is furnishing another reason for pause.
 The senate is apparently impressed with the fact that were the Alabama Power company to acquire contracts under which it would furnish all the electric current used in Alabama, 1t would still have surplus from Muscle Shoals ot more than 65O000 horse power. and that to dispose of this surplus, many new and beneficent industries would have to be developed.
 Action of Committee
 It is a matter of speculation as to what the result will be. The senate committee on finance and taxation, or account of absent members did not meet as scheduled today. Senator Hartwell that as a result of deliberation Wednes- day and Thursday, his committee will be ready to report Friday. It is said that majority of the members of the committee are opposed to the exemption clauses. but may. without committing themselves, so act that the bill as a whole would be returned with certain amendments with favorable report. If this course Is not taken the exemption clauses will be presented to the senate in minority report.
 The citizens of the Tennessee valley practically all of whom have displayed a keen, personal and vital interest in the furthering of the Muscle Shoals project will be in Montgomery again this week They contend that if the state violates it's contract with the Alabama Power company, the Muscle Shoals project, now pending in Congress. will be abandoned possibly for always that the government would not be justified in proceeding 1T a scheme involving $60.000,000. with the people displaying, through their repre- sentatives, an unfavorable attitude. Montgomery. August s.--(Special.) That telegrams were received by the senate committee on finance and tax ation from Judge Thomas w. Vert of Decatur, suggesting that the citizens of the Tennessee valley be asked as to whether or not their expenses to Montgomery were paid by the Alabama Power company, is reported. As ia remembered. prominent citizens who spoke before that committee last week in the interest of the development of Muscle Shoals were asked by Sen | .Itor Lusk as to whether or not they had maid their own railroad fares Senator Judge received telegram suggesting that the other members were honored also.
 The questions of MT. Lusk were re- ceived by the people of the Tennessee valley with surprise. but were an swered with dignity Because Of tht 1 fact that the men so questioned were prominent and some of them wealthy