The Birmingham age-herald., 1921-06-18
COUNTY |S FACING
 SERIOUS SITUATION
 FOR ITS FINANCES
Courts Decision on Corpora ton Taxes Makes Probable Vouchers for Pay of the
 Employees

Jefferson county is facing a most serious financial crisis, according to members of the board of revenue.
 This situation grew out of the recent ruling of the supreme court giving the state tax commission the right to examine the books of corporations in this coun- ty for the purpose of assessing the amount of taxes due the state from such companies. For several months the matter has been in litigation and no taxes have been paid by the corporations, depriving the county of approximately $400,000 which is due, it is stated, on the assessments made last year.
 Millions of dollars in taxes of the state and county from these cor porations will be held up indefinitely If the case is carried through the supreme court of the United States. members of the board of revenue admitted yesterday No money due the county from the corpora tions iN question will be paid until the mat ter is finally settied. which prom ises to be many months.
 Pay Vouchers
 As a result of this ruling county employees will have to accept vouch- CTS for their salaries instead of cash money, beginning July 1, and con- tinuing indefinitely until the final decision of the court is rendered or until the taxes begin to be paid this fall. It Is stated that these vouchers will cover monthly payroll of s5o.- 900 and employees will be forced to cash them at local banks at small discount.
 NJ V. Henry, county treasurer. mo- tified the board of revenue several weeks ago that, beginning July l he would be unable to pay the salaries of employees unless some means was devised whereby money could be borrowed to meet the current ex- penses.
 Among the possible effects of the decision of the court is the probable shortening of the county school term to six months, according to Dr. N. l.. Baker, county superintendent of edu- cation. However the county school
 
 the decision until March l of next year and if no decision has been ob- tained by that time it Is likely that the schools will close.
 Decline to Comment
 Just what action the corporations will take is not known as yet.
 Attorneys representing the Ten nessee Coal Iron and Railroad com pany, the corporation against which the test case was brought in the Jefferson county circuit court. when asked for a statement yesterday de- clined to make one, while the case s still in litigation. The opinion of the supreme court in this case ap- pears elsewhere in The Age Herald this morning.
 However, indications are that the case will be fought through the courts and 1t Is stated that it will probably be returned to the circuit court for another hearing. It is demurrers and did not involve a hearing on the merits of the case. It is probable that petition for a rehearing of the case before the su- preme court will be made by the cor poration.
 Forty Corpora tions
 Approximately 40 corporations are involved in the test case in which the Tennessee Coal, Iron and Rail road company was made the defen- dant when petition for a rule of mandamus was filed by the state tax comm ssion several months age seeking to compel the corporations to permit the examination of books and records for the purpose of de- termining the amount of taxes due.
 The case was heard before Judge Richard Evans of the circuit court and he sustained demurrers of the corporations. that the tax commits sion had no right to examine it's books and declined to permit such an examination, From this ruling the commi ssion appealed the case to the supreme court which reversed the ruling of the lower court.
 The proceedings grew out of the commission setting aside the tax assessment on properties of these corporations in Jefferson county which were made by the county board of tax adjusters. The com mission in it's petition charged that the assessments made by the loca. board on information by the corpor ate officials was too low and de- manded the right to examine the books of the companies Following the refusal of officials of the com pany to allow this, mandamus pro ceedings were instituted.
 The litigation has held up the pay ment of any part of the taxes owed by the corporations and there is now no assessment against the properties of the companies.