The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1919-08-29

tax on recorded mortgages and was re-enacteo WIN
out substantial change by the legislatures OF
and 1915.
Together with the act of 1903 each successive ac'
has laid tax of Is cents each 500 OF Indebtedness
secured by mortgage. In 1907 the Southern railway
issued mortgage to secure OF o0nas ou'
actually issued only $31 100000 at the time the mort
gaoe was filed for record The facts were presented
to the state board of compromise and was rueu ma
the mortgage should be filed upon the payment ol VIC
tax on the bonds actually issued, as these oonos con-
stituted the only debt secured by the morcgage Ina
the authorized issue of larger amount OF bonds qua
not Constitute debt on which the tax should be paid
but the board required the Southern railway 70
bond to the state to pay the mortgage ha On @
The records on file in the attorney generals Office
show no less than 25 of various and sunory com
instance the board followed the precedent estap
lshed in the Southern railway case Inc leglslaIue
which would indicate that the construction given the
law by the officers intended to be adopted py
the M snrs Turner VS. Henderson "a Sou a44
United States Company, 209 u s. 1851
The supreme court in the of ORear VS.. Sartain
1o1 Ala 275 held that the commissioners court not
having issued the road bonds the authorized issue OF
$4,000 of these bonds cannot be counted present
indebtedness of the county within the meaning OF sec
ton 224 of the constitution The same rule was LAID
down in Goodson VS. Deans l13 Ala 5ol.
The Alabama Power Company filed mortgage for
record in Chiffon county in 1915 for an AUTHORIZED
ISSUE of $5,oO0,OOO Of bonds Only $4,000 OF
ts rse Fixed by law Of 15c for each 500 of indebted
ness amounting to $4,000, and the mortgage was short
" thereafter cancelled and further bonds issued
Under the mortgage The state board of compromise
authorized the filing Of the mortgage upon the paymen
of the $4,000 and the execution Of BOND 70 tne ssa.e
further bonds be issued
In 1916 the Power Company executed mortgage
securing an AUTHORIZED ISSUE of 500, 100000 of
bonds, which was filed for record in Morgan county
$4,00O,0O0 of bonds were issued when the mortgage
was executed additional bonds authorizes % be IS
sued only when the Company made new extensions or
improvements of its system, and had sufficient earn
;nes to paw the interest the bonds The matter was
presented to the state commission and the state
board of compromise and orders made admitting
sne aS az he Of bonds issued which
amounted to $4,000, and the Company executed bond
to the state with the condition to pay ne mortgage TAX
it has promptly paid the the additional bonds
Since 1916 approximately $8,00O,OO0 OF additional
the mortgage tax was paid amounting to OOO max
ing in all $18OO0 which is the full amount required by
law to be paid.
WHY. we ask. should the Alabama Power Company
be singled out for criticism? Other power and ship
building companies have pursued the same course and
many other companies have followed the practice
with regard to their mortgages, and yet we hear no
criticism as to these.
We submit that there is reason for any attack On
this Company. There is no complaint pending before
the public service commission concerning IdteS OF
service In the 80 towns and cities where furnish
lighting to the public have voluntarily reduced the
lighting from Is to 40 cent In other cities
where other companies municipalities power
the lighting rates have been reduced.as direct result
of obtaining hydro powers and our rates are such that
many industrial companies using power to great
advantage. In not single instance has customer
discontinued service because of any question of
rates quality of service
We have requests from many towns and cities for
lighting service, number Of which are municipality
owned Is it to be the policy of the legislature to stop
further extensions? We believe Company has been