The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1919-08-28
TEXT OF RESOLUTION


The Carnley resolution is as follows:
! Whereas, the Alabama Water Pow r
company is rapidly developing in this
| state a gigantic, natural monopoly,
having to do with commodities of
every day life. heat, light and power,
vitality affecting every individual or
manufacturing enterprise in Alabama;
and.
| whereas, the Legislature of 1907 has
seen fit to give to corporations" only
| the states most valuable asset
water power--if developed, estimated
at 1000. 0S4 horsepower. and the states
| sovereign power of eminent domain
the right to take private property for
public use-has been vested in these
gigantic corporations, enabling them
only to go up and down our streams
and sweep clean all minor enterprises
or industries; and.
Whereas, these water power COM
| panies have been exempted from tax
alton for a period of years under the
deception that this special privilege
was necessary to encourage and Sc
cure the development of hydro electric
power; and
.'Whereas. such exemptions from
taxation are unfair. unjust, i-discrimi'
natory, unreasonable and unnecessary,
| and in part contrary to the constitution
/ of Alabama, which requires payment
of franchise taxes by every such cor
poration which shall be in proportion
to the amount of the capital stock
and,
whereas, under section 2069 of the
code of Alabama, of 1907 these COM
panies were exempted, not only from
all ad valorem taxes, but from all
privilege taxation of all description,
including franchise corporation taxes,
contrary to the constitution of the
state; and under the operation of these
laws, the Alabama Power company
has failed to pay, and the state has
failed to collect. such corporation or
franchise taxes, amounting to approx
mately $1,140, 900 besides large sums
of interest thereon, and which large
sums are now due the state and counties
of Alabama; and
Whereas the state board of compro-
mise, during Governor Henderson's adj
ministration has seen fit to relieve the
Alabama Power company, on it's petit
ton, of the payment of $500 of the
mortgage tax on a 100000 mortgage,
| reducing the face value of such mort
gage to 100000, instead of the stipu-
lated amount of $1,000 900, allowing
payment only of $4,000; and has further
relieved said Alabama Power company
from the payment OF s144,0oo of the
mortgage tax due on a 500 600, 900
mortgage, ordering payment only on s4,-
100000 of the face value or amount of
Sloo.0O0,000 mortgage. and without
warrant or authority of law allowing
said Alabama Power company to paw
mortgage tax on $4,000,0O0 or $4,000, and
leaving the said sum of $4,000 with
/ interest thereon, yet due the state of
Alabama and counties; and
Whereas said Alabama Water Power
company has, by system of consolida-
ton or merger, escaped the payment TO
the state OF approximately $4,000 90. cor
poration charter fees, which should have
been paid on increased capital stock and
Whereas this same gigantic n1onoDo-
!istic Water Power corporation, through
system of organized and paid agencies
has become an active and controlling
factor IN Alabama politics, thereby Sc
curing favoritism and special privileges
from bearing it's proper share of the bur
dens OF government and successfully de-
feating the efforts of legislatures to re-
peal the said tax exemption and
wv hereas, Governor O'Neal, in his mes
sage TO the Alabama legislature recon-
mended the repeal of these water power
exemptions in the following language:
Before the passage of the laws adont
ed in 1907, no dam could be erected
across any navigable stream in Alabama
without consent of the state govern
ment There should be no disposition on
our part to prevent the utilization of the
enormous water power now being wasted
III our navigable streams, or to hamper
" iStlci diiy company SEEKING to e.
Velop this power by unjust and unreason
able restrictions 1t Is folly however. to
say that this power will not be developed
unless investors are granted exemptions
from taxation and all easements which
ihe state might possess in this valuable
asset,
would, therefore recommend tina,
the present laws granting to corpora
ions developing water power. the
right and easement of the state in and
70 The beds of the stream as well as
exemptions from taxation to be re-
pealed. | would recommend that in lieu
thereot the state grant its right, title
ana interest in and to the beds and
waters of its navigable streams only to
those who will pay the state a reason
able toll on each horse power deyel-
oped and Sold
And. whereas, Governor Henderson
IN his message to~the 1915 legislature.
condemned these exemptions in the fol-
lowing language:
We also have fallen into the babit
of exempting certain lines of industries
from taxation for stated periods This
discrimination in taxation was insti-
tuted for the purpose of encoura srine
the Investment of capital in favored in
dustrles but | doubt if it has ever been
the means OF inducing the investment
OF any capital whatever within the
state. All property should be required
10 pay It's Just share of the burdens Of
4 government and to recognize a con-
trary principle is simply to invite prac-
ices in the nffor' n e,r-a Ifavs- = ,le
legislation that are insidious In their
nature and tendencies
/ And, Whereas. the Alabama Power
company Is now trying to influence
he present legislature to continue the
4 lie of these exemption laws for nine
years more and is seeking. through the
general revenue hill, 10 re-enact said
exemptions, FOR this continued period
/ excepting. however the franchise tax
, required by the constitution of Ala
| bama GaQi) and
! Whereas. the revenue bill. H. B. 1888,
] Pa purjfx mad t.pr;cs 49, reo.r