The Birmingham age-herald., 1919-08-07
DRIVE COMPANIES AWAY

Jack Thorington, of Montgomery, ab stract attorney, declared that the income tax, if applied to land loans, would drive companies doing that kind of business out of the state.
 NJ. S. Carmichael, of Montgomery, dis cussing briefly the effect the income tax would have on land loan companies ar- sued that it would retard development in the state.
 E. G. Branch, of Montgomery, repre- senting life insurance companies, con- tended that an income tax imposed on them would work a hardship, not only on the insurance companies, but on the people of the state as well. He stated that premiums collected in the state of Alabama in 1918 by life insurance com panies amounted to S7,716,O0O, and death claims paid to s, GOO, or 4S per cent In 1917, premiums collected, $6, ,s25, ,Ooo; death claims paid, g, ,S07, 900, or Al per cent, and that in 1917 the life insur- arce companies returned to Alabama in the way Of death claims taxes commits sicns and expenses, $2,20O,000 more than they took out. Loans made in Alabama by life insurance companies he said, ag- gregated S79, 10000, while the Alabama re- serve fund amounted to only s41, 900, ,00O
 RETALIATION CERTAIN
 Wilbur Moore, president of the South , ern States Life Insurance company of Alabama, an Alabama corporation. dis couraged the suggestion that home com panies be exempted from the income tax, but that foreign companies be required to pay it. He said that would cause retaliation measures in other states He said Alabama companies would be put out of business if required to pay the in- come tax.
 Alabama life insurance companies, of <rh inl. fhar fr,,~ , asset of $5.000,000 and policies in force amounting to $4,0o0,0O0, and that they are just getting on their feet. He said insur- ance companies had already paid into the Alabama treasury this year $4l0,000 and that the insurance department was being run on per cent of that amount
 He contended that the pending bill dis criminated against Alabama companies in that they would have to pay tax on their entire incomes, whereas foreign com panies would pay only on incomes earned in Alabama.
 President Reynolds of the Chamber of Commerce of Mobile appeared in the interest of shipbuilding plants, insisting that present exemption laws should be re- tained in the law.
 KEEP FAITH, IS PLEA The only way the states revenue can be increased in the future, he said, is by building new industries and bringing new capital into the state. He, urged that the state keep faith with the people who invested their money here under existing laws that granted them exemptions on machinery and raw materials.
 Former State Senator Harry Hartwell of Mobile. advocating continuance of the tax exemptions, said some at least of those demanding the repeal of these clauses were laboring under misappre- henson; that the law was enacted for the purpose of encouraging outside cap ital to come to Alabama.
 He said President George Gordon Crawford of the Chickasaw Shipbuild- ing company stated at banquet given in his honor at Mobile about year ago that his company decided to build at Mobile because of the friendly spirit Alabama showed toward new 'in- dustry; that Pensacola. Savannah and