The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1921-11-25
REHEAR|NG DENIED.
IN POWER COMPANY.
AND BANK TAXES.
Rulings End Litigation Start
ed by State to Collect
Taxes From Exempted
Corporations
BY FRED H. GORMLEY
Montgomery Bureau The Age Herald,
22l-2 First National Bank building

Montgomery, November 24.-(Spe-
cial. )--Alabama received a Thanks
giving Day gift of few hundred
thousand dollars Thursday when the
supreme court denied the applica-
lions for rehearings in the cases of
versus the Pea River Power company
and Elba Bank and Trust company.
The ruling on applications for re-
hearings end the litigation started
by the state in an effort to collect
franchise taxes from all corporations
which have been exempted by statute
from taxation for a period of years.
The supreme court held that the
constitution of 1901 required the leg
islature to levy franchise tax
against every corporation and that
the legislature had no authority to
exempt any corporation from the
payment of a franchise tax. The re-
suit will be that the state may go
back through the years and de-
termine what franchise taxes should
NC Pdio Wy lAG wi ROiabAOhS dANSA eAAS
revenue laws in force at the time.
No estimate can be made of the
fund which will go into the state
treasury under the decisions. The
Alabama Power company will be
forced to pay the largest amount.
while ali other power companies,
shipbuilding plants at Mobile, and all
banks will be forced to pay fran
chise taxes based on their capital
stock from the time they came into
existence in Alabama. 1t is believed
the total to come from the banks will
be about 100000, but no one can
know what will be paid by the other
corporations until auditors have
made an examination of the records.
Decision Is Final
Under an agreement between the
state and the corporations interested
the decisions of the supreme court on
the rehearings will be final and no
effort will be made to appeal the
cases to the United States supreme
court.
The supreme court reversed it's pre-
vious decision in the case of the Ala
bama company VS.. Cordelia Brown,
from the Jefferson circuit court
which reversed and remanded the
case to the lower court and rendered
a decision in which it conditionally
affirmed the action of the lower court
in awarding the plaintiff $4,000 for
the death of her husband Albert
Brown, which occurred July rs, 1919,
while Brown was employed by the
company The supreme court held
that the judgment was excessive and
directed the plaintiff to file with il
Nit In, 10 ant
ting one-half of the amount. If the
plaintiff does file the agreement
within the time allowed the case will
be affirmed. If not, the supreme
court will reverse and remand the
case for another trial. This action
was taken under the law enacted in
1915, which gives the supreme court
the power to reduce excessive judg-
ments.
Rulings Announced
Rulings on applications for rehear-
ing announced by the supreme court
Thursday, follow:
N. C. Fuller VS.. ]. A. Fair, appeal
from Bibb circuit court; application
overruled.
Rosary Gardner. ct al, vs. John B.
Ruffner, ct al. appeal from Lowndes
circuit court, in equity; application
overruled and opinion extended.
Marbury Lumber company VS.. jose
phine Jones, administrators, appeal
from Autauga circuit court; overruled
and opinion extended.
Elk parte Home Insurance Co. of
New York, petition for certiorari to
court of appeals; application for re-
hearing overruled.
Elk parte Elba Bank & Trust Co.
Gre State, ex rel. VS.. Elba Bank &
Trust Coz, petition for certiorari to
court of appeals; application for re-
hearing overruled.
Elk parte Pea River Power company
Gre state ex rel. VS.. Pea River Power
company, petition for certiorari to
court of appeals; application for re-
hearing overruled with opinion).
H. G. Bell, administrator, ETC., VS.
Anna C. Blackshear ct al. appeal from
Houston circuit court, in equity; ap-
plication overruled
Sam T. Smith vs.. ]. ]. Heath, ap-
peal from Coffee circuit court; appli-
cation overruled and opinion modi-
fled.
SIS. S. & Co. VS.. o. L. Jones, ap-
peal from jefferson circuit court; ap-
plication overruled.
Alabama company VS.. Coredlia
Brown, appeal from jefferson circuit