The Birmingham age-herald., 1923-03-08
TALK LIP ALABAMA

Comment has already been made in these columns of the injury done to Alabama by unfounded statements indicating that this state is hostile to capital, and that industries are accordingly going elsewhere. The ar gument appears to hinge on the allegation that capital is intimidated by the recent action of our legislature in repeating ex- emptions from taxation as applied to water power companies The argument entirely overlooks the fact that the only kind of in- dustry in the state now enjoying such ex- emption is shipbuilding, and that, therefore, there can be no fear on the part of those contemplating new industrial establishment that they could be affected one way or the other by any state policy with regard to tax exemptions. Furthermore, the principle of tax exemption is not easily defended and !, there is nowadays setting in a strong and steady sentiment against such exemptions, whether industrial, or whether on securities, public or private, state, national or munfcl- pal. Our legislature, therefore, should be commended for being abreast of the best thought of the times, rather than berated as if it had committed some crime against our prosperity Such criticism overlooks the fact that the legislatures foremost coll cern is the public welfare. If, as the critics of the legislature also allegc, the tax bur den should be more evenly distributed, why should not the repeal of tax exemptions be credited as step in that direction?
 Yet, instead of giving such credit and putting the states best foot foremost, cer- tain journals critical of the legislature, and solicitous of the Alabama Power Com pany have said: "The people of Alabama might as well get this straight in the,r minds; capital is not going to come into the state when there is a hostile spirit to- wards it, and when represenrarives of the people seek to use investments in a state as political footballs, to be kicked around" All this exhibition of emotion appears to date back to the unsuccessful effort to ob- tain for the power company valuation for rate-making purposes that was generally be- lieved to be unwarranted and far higher than the opinion of the Public Service Com- missions own experts considered just. How unjustified the proposed valuation was, later was shown when it came out that the power company was making sixteen per cent. on its investment, and still later when it accepted without protest an actual decrease in rates as affecting the smaller consumers Of power. Although only small consumers were affected the aggregate of such con- sumers must make a very considerable item in the company's business. The question arises why there should be all this concern over the attitude of industry, when the in- dustries of Alabama protested against the increased valuation, but did not protes. , against the repeal of tax exemptions.
 As shown in The Age-Heralds editorial of Tuesday morning, already such unfound- ed allegations as to Alabamas unfriendly attitude toward capital have found echo in other states, and particularly in the Chicago Tribune, with it's circulation of more than half a million on weekdays and almost million on Sundays. Think of the incom- parable harm such unfavorable advertising of this state can have upon the minds of those who may be considering this states inducements to capital investment
 Such misrepresentation is hard to over take and combat. Nevertheless, it can be done, if the press of the state will unite to lend its powerful influence to the task of setting Alabama before the nations inves- tors in it's proper light. As The Age-Herald said on Tuesday, Alabama has much to offer and nothing to be ashamed of" h. dustries, it is true, are not affected by such considerations as systems of taxation, for in the long run, the results average much the same in every state. Industries are in- fluenced by considerations of economical operation, reasonable cost of fuel or power, transportation facilities, abundance of raw material, intelligent labor and industrial op- portunity. The great industrial district of Birmingham, with its magnificent record of expansion, which has not yet passed into it's greatest stride, stands as magnificent repudiation of any and every sort of charge against Alabama's treatment of capital and industry. Let the newspapers of the state resolutely combat any journalistic tendency within the state to give a contrary impress sion, and unitedly repudiate any outside misrepresentation of Alabama. Let that policy be fortified by an intelligent and complete setting-forth of Alabama's oppor- tunities. Then capital will come here, its attention having been directed hither, for Alabama can well undergo the most care ful inquiry on the part of prospective 1n- vestors.
 A RECORD OF RECKLESSNESS