The Birmingham age-herald., 1923-02-02
.EXEMP PTION REPEAL
 MEETS FAVOR IN COMMITTEE ROOM
House Committee Approves Senate Bill Without Chang ing Word-Amendment
 Proposed By Long Lost
STATE CAPITAL BUREAU l
 THE AGE-HERALD ] Montgomery. Ala. Feb. | l

Without changing word the house committee on corporations Thursday afternoon voted to make favorable report on the senate bill repeating the exemption statute relating to the water power deyel- epment of Alabama. The vote was g to [. The bill was passed by the senate Tuesday by big majority.
 J. Lee Long, representative Of Butler county, proposed an amend ment which would have made the repeal of the exemptions operative against all development of the future but. would have continued exemp- tions on development which have al- ready been made. MT. Long insisted that corporations were invited to make the development with the un- derstanding that they would be ex- empt from taxation for a period or 10 years from the date the devel- opment began. He admitted that the legislature had the legal right to re- peal the exemption statute. but con- tended the state had a moral duty to perform in maintaining the exemption.
 But a. majority of the committee were opposed to a continuation of the exemptions, insisting that when the development was started those who put up their money for the work knew the legislature had the right to repeal the statute at any time and that the exemption was no more than a bounty offered to water companies by the legislature. The favorable report on the bill without any amendment by the com mittee will mean that the bill can be passed by the house and delivered to the governor before the end of the week.
 Rushton Opposes Move.
 Ray Rushton, Montgomery attor- ney, appeared before the committee and appealed for the continuation of the exemption on developments all ready made because the state had promised those who made the devei- opment that they would be exempted from taxation for 10 years.
 He stated that when plans were being made for the first development in Alabama by those who formed the Alabama Power company hef was called to New York and questioned about the exemption statute and in- formed those interested that Alabama had promised a tax exemption for lo years He further said the legis- lature had the right to repeal the eX-s ernption but he believed he knew the people of Alabama well enough to say that no moral obligation would be repuidated.
 Says Would Break Faith.
 Mir. Rushton said a bad feature or the repeal would be the advertising to the world that Alabama had re- pudiated it's promise made to foreign capital at the time it came into the state. He insisted that when English capital was invested in the water bower development in Alabama It had assurance that the people of this state would continue the exemption for the period designated by the statute.
 Walter Brewer of Jefferson sup ported the bill repeating the exemp ton. He declared that Alabama, by the exemption statute, never made promise to foreign capital that the exemption would be continued for lo years but merely offered bounty which could be withdrawn at any time. He contended that 1t IS not right for large corporations to enjoy an exemption from taxation Whiie others are forced to pay taxes on their properties.
 Valuation Debated
 One of the most interesting con- tests during the closing day of the short session of the legislature Will be on the bill giving the public serv- ice commission the right to make the revaluation of the property of a pub lie utility on the petition of either side.
 The house judiciary committee Wednesday afternoon voted to make favorable report on the bill, but only with an amendment which was proposed by the Alabama Power company This amendment would give either party valuation pre- ceding the right to appeal to the circuit court of Montgomery coun- ty and from the circuit court to the supreme court. On an appeal either. court would have authority under the amendment to establish new valuation or to return the valuation case to the public service commits sion for further proceedings.
 Utility Board Opposed
 The public service commission op posed the amendment contending that the bill as originally written would protect the rights O, all par ties involved in valuation case. The commission believed the power of fixing valuation should rest with the comm mission, and that when a decision has been rendered 1t should stand, except when any person involved files an application for rehearing which would be considered as all applications for rehearings are considered by the ap pellate court now.
 Hugh White, counsel for the com mission. declined to approve the amendment proposed by J. F. Thompson, counsel for the Alabama Power company. but when it ap- Deared that the committee intend- oG to make a favorable report with the amendment he agreed with Mir. Thompson on certain corrections in the amendment. The corrections make it certain that either party to valuation case shall have tho right for applying for rehearing and for an appeal to the circuit court. The right of rehearing or appeal of course will be limited to parties of record in the proceedings.
 HIGH COURT DECISIONS
 Decisions announced by the su- preme court Thursday follow.
 ANDERSON, c. J.-Will May vs state, Shelby circuit court; reversed and remanded.
 SAYRE, J.-M. c. Fountain. judge etc, vs state. ex rel. c. l.. Nybart ct al, Monroe circuit court; reversed and remanded.
 Blount County bank, administra- tor, etc.. vs James Kay, Blount cir cult court; reversed and remanded Margaret Annie Lee Martin. alias etc, vs state. Jefferson circuit court; reversed and remanded.
 Jasper Land company vs. Man chester Saw Mills, Walker circuit court; reversed and remanded.
 Ex parte Clay c. Dunlap, petition for writ of mandamus; mandamus denied.