The Birmingham age-herald., 1920-06-06
ORE TAX DECISION ID AVOID SPECIAL
 SESSION, IS VIEW
Legislature Had Valid Right to Impose Tonnage Tax, Is Opinion Rendered By
 Supreme Court
By FRED H. GORMLEY
 Montgomery Bureau The Age e-Heraid 22l-2 First National Bank Building

By FRED H. GORMLEY
 Montgomery Bureau The Ass-Heraa
 22l-2 First National Bank Building
 Montgomery, June 5.- Special. )-An extraordinary session of the Alabama legisla- ture may be avoided this year by the decision of the supreme court Saturday afternoon sus- taining the validity of the sec tions of the revenue law of 1919 which levy a tax of 2 cents a ton on all coal and 3 cents a ton on all iron ore mined within the state.
 The supreme court, fin m opin-
 ion of Chief Justice John c. An
 derson, which was cOncurred in by
 aII members of the court, held that
 the privilege license tax levied
 on coal and iron companies did not
 violate the state constitution. the
 federal constitution or the bill of
 
 fnate between persons of the same
 clnss and that the legislature had
 valid right to impose the liz
 cense tax.
 Five hundred thousand dollars a year will continue to flow into the state treasury from the two privilege taxes as result of the decision. Gov ernor Kilby is expected to issue a statement during the next few days showing that the state income with the privilege taxes on the two classes of business will be sufficient for the time being, and declaring there will be no need for an extra session of the legislature until next year, if at all.
 GOVERNOR MUCH PLEASED
 The governor received the decision with great pleasure but surprise, as the supreme court early in May had handed down another decision in- validating the state income tax, which would have brought about $1000 00C into the state treasury, and it had been feared the points involved in the two cases were so similar the court would render decision against the tonnage taxes.
 Never has greater fight beer made in the legislature than was made against the tonnage taxes. As soon as the sections were in the reve nue bill the coal and iron companies organized to make a fight agains them in the courts. By agreement : test case was brought by the Republic Iron and Steel Company in the Mont gomery circuit court Judge William L Martin rendered a decision sustaining the validity of the tax and it was thi' decision which was upheld by the su preme court In the meantime, b. agreement, the coal and iron compa nies continued to pay the privilege taxes to the state monthly with tn, l understanding that if decision wa rendered invalidating the sections thu money would be returned by the state OPINION IS BRIEF l Only four typewriter pages were usef l by the supreme court in it's opinion. Twt pages were devoted to a statement of tn, case in which the two sections under at l tack were set out. Chief Justice An | derson, in the opinion, held that the ta, was on the privilege of doing business and not on property and not a discriml nation against any persons of the sam class.
 l Governor Kilby hopes the tonnag l taxes sustained by the supreme cour Saturday and the proper assessments 0 all real property for ad valorem taxe | obligations of the state at present, ant l that there will be no need for an extr session of the legislature at this time. | Following the decision of the suprem court, Governor Kilby Saturday nigh said he would make an immediate in vestigation of the states financial con l dition, taking into account the revenu to come from tonnage taxes, and woul issue statement to the people giving hi views and announcing whether or not h 1 believes it necessary to hold another ses sion of the legislature.
 TO ISSUE STATEMENT l q hope there will be no need for tn calling of the legislature at this time said Governor Kilby. "The winning Q the tonnage tax case assures the stat government of reasonable amount 0 revenue, and I trust that this source Q revenue with the proper assessment o all property for ad valorem taxation vii | be sufficient to meet the states needs As soon as the financial condition of tn state can be determined. I shall issue | statement to the people who are inter ested in the success of the state govern ment and who have shown concern ovc the recent developments which have in dicated that an extra session could not D | avoided"
 The general opinion in official circles that the state will obtain sufficient rev enue this year. The fiscal year, begin ming October l, 1920, will take muc larger amount from the state treasur because of increased appropriations fe public schools, Confederate soldier. publ health and other institutions of the stat Amy statement regarding the states f nancial conditions must apply to the fl cal year of 1919 and not to 1920
 1 POWER OF LEGISLATURE | Referring to the powers of the legis lature. the opinion said3
 Tn the levy of a privilege or licens tax the legislature is not restricted to the trads. business or occupation which it may select or the amour levied so long as 1t does not discrim nate between members of the sam class. that is, those similarly situate and the tax must not be so exorbitar as to prohibit or oppress or restral a legitimate and useful trade. bus
 (COntimued on Page FOurteen.)