The Birmingham age-herald., 1923-02-14
'BROWER RAPS
 IF FAITH BREACH.
State of Alabama Had Right to Repeal Tax Exemptions and Power Company Knew It. Senator
 Declares

Senator Walter Brewer explained to Birmingham fellow Kiwanians at Tuesdays luncheon his attitude on the repeal of the tax exemp- tion statute applying to hydro electric companies in Alabama.
 q speak at this time," said MT. Brewer, "because there have been such persistent misrepre- sentations in the press and such continued assertions in certain quarters that there has been breach of contract and a breach of faith. As the author of the re- peal bill I don't like to have my friends feel that even inferential- ly could be charged individually with a policy of breaking faith or that my state would do such thing.
 "ln the first place there has been lot said about the loss of cotton mills by the legislatures action and that such mills are going to North Carolina. The tax exemp- tion on cotton mills in Alabama ex- pired long ago and the law just passed applies to nothing except hydro-electric industries. So that the tax exemption feature has nothing to do with the location of a cotton mill in the state in spite of the fact that Theodore H. Price is quoted in the press as saying mill has just been lost to the state on this account. 1 challenge this and call him to name the mill.
 Strangely enough, the day the tax exemption bill came up in the senate l received by special deliv- cry from the secretary of state of North Carolina a copy of that states law repeating all of its tax exemption statutes. That was passed in 1921. h other words, North Carolina did two years ago what Alabama has just done. So that the talk about everything go- ing to North Carolina because that state is so much more generous is based on transformation or igno- rance.
 Repeal Option Retained
 "When state grants an exemption it retains it's option to repeal it at any time its legislature feels the states best interest demands. The man who invests, invests with the knowledge of that right The su- preme court of the United States has ha hat II. of contract. The supreme court of Michigan. Justice Cooley the great est authority on contracts that ever lived, writing the opinion, held simi- larly. The Alabama legislature in the l0's exempted mineral land devel- opmeNt from taxation for period of 10 years, and then two years later re- pealed it because the states best in- terest was thus served in the opin- ion of the Legislature. The Alabama Power company not only made it's in vestments with academic knowledge of the right of the state to repeal the exemptions later, but it's Alabama representative carried the direct knowledge to them in New York be- fore the investment was made.
 Furthermore, the Alabama Power company did not begin it's invest ments in Alabama until five years after rhe exemption law had been passed. Water power development is governed entirely by the location of the impounding sites and the market for current. God located the places where hydroelectric plants and coal mines should be. You can locate a shoe factory in Boston or . cotton mill in Fall River, but you can't To- cate a coal mine there. States which haA ha eft hon electrically more rapidly without ex- emptions in many cases than states which gave such exemptions The very theory of tax exemption is wrong. Everything should pay it's fair share of the burden of govern ment.
 One of Two Alternatives
 With the states increasing needs there are just two things to be done. Either the taxes of those who are already paying them must be in- creased or everything must be put on the same basis and made to pay it's share. It has been stated and not disputed that the net profits of the Alabama Power company the past year were 16 per cent. The exemption repeal will require about 1 per cent of this amount to be paId to the state. Do not expect any business man to believe that when concern is mak- ing 16 per cent it will be driven away if that profit is reduced to 15 per cent. It is not common sense. And furthermore. if that is the kind of concern the Alabama Power company is, we do not want it to help us in the development of our state.
 a believe in fairness. l believe in the sacredness of contracts. But fairness means that no one industry shall nave .n advantage over the others and that the burdens of a part of our taxpayers shall be made heavier because some one among us is not doing his part"
 Prior 10 MT. Brewers speech, the Kiwanis club had staged mock ses- sion of the Alabama senate. with J. L. Davidson as presiding officer, and some of the stunts caused the great est amusement and hilarity Various bills were introduced as travesties on actual bills, and the comments and personal allusions were highly di- verting.
 Darby. H. Brown presided over the luncheon in the absence of President Erskine Ramsay who has heer ca'ied ap av py his btotE ar' 'a ifilusS1.