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

We wish to correct certain erroneous statements
which have been made concerning the Alabama Power
Company. The tax exemption law contained IN Sec
ton 2O69 of the Code passed in 1907. The Power
Company began construction of its Lock IL Plant on
the Coosa River in October 1912orethan i've years
after the law was enacted The Company had nothing
to do with the enactment of this law but this statute
nrobablv had more to do with bringing about the de-
velopment than any other law because Tor at least IL
wears the Company will scarcely meet its fixed charges
and for the further and important reason tnat
the statute showed that the people of the state desired
the developments to be made. 1t was tins declared
policy assured the Company that spirit OF en-
.ouraoement and fair treatment would be continued.
The effect of Section 2o6e is to exempt for period
of 10 years the dam and certain other properties OF
power companies except lands which continue IN all
respects subject taxation All property Whlch at any
time has been subject to taxation continues to pay us
taxes although acquired by a power company. Inc
statute merely exempts for limited time the properly
which is brought into the state here created Tor the
production distribution and transmission OF hydro
electric current.
We have at different times acquired lighting plants
at Anniston Huntsville, Decatur, Albany, Marion, Al
ITALIA and at other places, but IN every such case we
have continued pay the taxes, both tangible and IN
tangible on the value assessed by the state board OF
euuilization We have never withdrawn any SUCH
property taxation although this has been charged
several times by those who not familiar with the
facts.
The construction of our Lock IL plant began In Oc-
tober 1872 and the exemption will expire in October,
1922 All plants and lines and other property which is
exempt under the statute will become subject to taxa
ton in October 1922 These dates and facts have been
set forth in of the state board Of equalization
and we have never contended that any exemption OF
our plants and property extends beyond October 1927
The recess committee which prepared the revenue
bill did not extend the term of the exemption Under
the bill which the house considered weeks ago
there was extension of our exemption, nor have we
advocated an extension of the exemption statute-our
position being that the state should not undertake to
repeal statute under which its obligation has been
xven to companies that certain of their property would
not be taxed for a period of 10 years.
The legislature of 1907 authorized companies in
dvduas to build dams and generate for the ben
eft of the public It has been charged that the egsa-
ture gave the water powers to corporations by the law
of 1907 1t authorized corporations to make develop
ments but in every they must be for the benefit OF
the public-carrying the express obligation fixed by
law everyone to the limit of their capacity the
order in which requests are received.
The statement has been made that the Alabama
Power Company has failed to pay franchise taxes
amounting TO Sl,l4UUUU tnlS IS untrue Even Il uhuer
the exemption statute power companies required
to pay the corporation and franchise taxes they would
amount to about $4,000 for the entire period in which
this Company has been operating. We have not sought
to evade that tax or any other tax which the law
quires us to pay, and the present legislature has
pressly placed the franchise tax power and ship
building companies and we have not made any sug-
gestion that it should not be imposed.
The statements relative to this Company escaping
payment Of certain mortgage taxes are untrue.