The Birmingham age-herald., 1923-03-22
, TAX EXEMPTIONS AGAIN

editorial "The Tax Exemption Fallacy." which recently appeared in The Age-Herald, says that it is "a bit puzzled that The Age Herald has insistently and consistently in- dorsed the act of the legislature when that body made the Alamaba Power Company the sole object of it's animosity during the short session." Previous to the repeal of the tax exemption for water power com- panes The Age-Herald expressed the opinion that the principle of tax exemption is not sound, and suggested that the tax exemp- tions be repealed as far as they affect ln- dustries not yet located in this state, but not as affecting those already enjoying ex- emption. When the repeal of water power exemptions was being debated the opinion was set forth in these colmuns that "the state has full authority to do this, but no quasi contract or privilege should be violated un- less it be shown that wide public service is to be performed thereby" When it became evident that the legislature would repeal, the exemptions The Age-Herald said: "In re- turn for tax exemption, which is given in a spirit of cooperation, it follows that the companies taking advantage of it owe that same SplTlC OI IllutudA uclp tAh0 uOvSAVP- ment of the state, and forfeit the claim to exemption when they are discovered to use their influence to their own aggrandizement and seem forgetful of their obligation to con- slider the public welfare. Thus the Alabama Power Company, both by its intense cam paign of opposition to the leasing of Muscle Shoals to Henry Ford, and by its more re- cent effort to win questionable valuation for rate-making purposes at the hands of two repudiated associate members of the Public Service Commission, has aroused the resentment of the people of Alabama. Both of these acts were contradictory to the general welfare of the state and people of Alabama, and the company has no one but itself to censure for the feeling it's policy has aroused" Thus it is shown that The Age-Herald, while not favoring the repeal of exemption as applied to the power com pany, yet clearly set forth its opinion that the power company had not shown itself fully apprecative of the courtesy. It is also apparent to any one who studies the ques- tion that the power company has in no way been financially penalized by the repeal, for the charge is recognized as one legiti- mately to be included in its rates for ser vice.
 The question would probably have rested there, but when certain journals began to accuse the legislature of bad faith and. of enmity to industry, although these same journals had not sought to protect the peo- pie from the increased rate potentially in herent in the high valuation sought by the power company, The Age-Herald defended the legislature, both in the legality of its resolution repeating the exemption statutes, and against the charge of enmity to indus try, which perhaps even those who make the charge do not sincerely believe. That the repeal was not an act of "bad faith" and was not so regarded by the power company itself is to be proved from the records, for the attorneys for the industry knew. in the beginning that tax exemption is not con tract and is subject to withdrawal at any time without notice. Witness also the opin- ion of the United States supreme court, 79 U. S., 541: "Nor are we able to say that this action involves breach of faith to- wards the owner of the manufacturing property, conceding as the plaintiff must anu uOcS, tudI tAC CACiHPeAoA Ol Aio PAOPC erty was of the bounty of the legislature. He knew when he accepted it that it was liable to be revoked whenever the local leg islature or congress should be of the opin- ion that the public interests demanded such action." No act can be regarded as a breach of contract when the recipient of a favor understands at the time of acceptance that it may be legtimately withdrawn at any time.
 The legislation cannot in any manner be described as punitive, except as it may be interpreted as a rebuke to the power com pany for it's political activities outside its own proper sphere of industrial service. With other industries now enjoying exemp- tion there is no present issue. So far as this journal is informed, they have been accused of no act or policy abusive of the privilege they enjoy. What is of concern is that the newspapers of this state should unite, as many are now doing, to prove to the nation that this state is friendly to capital invest ment, has not jeopardized any such invest ment in the slightest degree, and presents to the industrial world the most attractive field for enterprise and development to be found anywhere.