The Semi-weekly leader., 1921-12-14

nership to prey upon the business OF
the state, dividing their recovery, four
parts to the state and one part to the
agent. You might as well expect econ
Omy and consideration in the cost plus
plan found disastrous by the federal
government as to expect equitable
dealing and fair treatment to the tax
payer when it is to the financial good
both of the state and Of the revenue
agent to collect from the taxpayer the
greatest possible amount.
For a little while would like to
mention some of the litigation that has
recently been instituted by the state,
In part through the revenue agent and
in part through other sources, which
illustrate my meaning. Not long ago
the manager Of one Of the largest lum-
Der companies in the state told me
that his company some years before
bought some land which had been sold
by the state before the Civil War. His
company, it happened, had located its
logging road on some of this land,
which lay between the mill and tim
Der pond. Without any notice, at the
suit Of the state he was one day served
with an Injunction which prevented
him actually from operating his log
road over this land and hauling his
timber over it to his mill. In such
cases the state gives no bond, and II
1t loses the case pays no damages for
the harm it has done. In this partic-
ular case the mill has been forced to
pay $4,000 to relocate its tracks, and
this before ever the question was de-
cided as to whether a title of seventy
years old, given by the state, ought to
be good, whatever may have been the
conditions under which 1t was convey.
ed. During that seventy years the
state unquestionably has received
more in taxes from the various owners
than its entire present worth amounts
to. What do you suppose this business
man of Mississippi would or could say
to another business man looking here
for an opportunity for investment? II
you wish to know, here is the remain
ing part Of his story. He told me that
for many years he had carried his de-
posits In Mississippi banks-in one Of
your banks-but that now under a re-
cent law the revenue agent has au-
thority to compel all banks to bring
into court their books and to open mp
the names Of depositors and the
amounts of deposits. The amount
shown by the book today as a deposit
may of course be the proceeds Of a
note and may all be borrowed capital.
Still, under the laws of Mississippi, it
would be taxable. and this particular
man declines to have his operating
capital in Mississippi bank, because
some day he is looking for the state
to bring into public view the deposits
OF every bank and to levy against ev-
cry depositor the customary back tax
assessment
While this condition is prevailing In
Mississippi. the state Of Louisiana in
Its recent constitutional convention
specifically exempted from all taxation
money placed on deposit In Louisiana
banks. might mention another case
now pending where the state in attack
ing the sale OF lands granted to it by
Congress for the benfeit of state educa-
tional institutions. The land was soil
many years ago, and the state has
been receiving taxes from its owners
ever since, but it would now cancel
the title, retain the taxes, and leave
the investor his losses as a memory.
Fire Insurance Suits.
do not pretend to speak OF the
merits Of the recent fire insurance
case. do not know what the merits
are. But out Of that litigation some
distressing facts have become clear.
The average citizen of the state knows
little about the insurance companies
carrying his risks at this time If he
has been fortunate enough to get any
secure insurance at ali. and he is paw
ing for his insurance fully ais much il
not more than he paid before the suit
was begun Not only that, but q great
many policies are being placed with
the same Insurance companies that
have left this state and at greater
premiums than existed before they left
this state. and II loss occurs the IN.
snred cannot recover or bring his case
n the courts OF his own state but must
80 70 other states where the insurance
companies can be brought into court. |
We know that the Supreme Court OF
the United States has held that the
companies may be. regulated by lnw.