The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1923-01-19
POWER EXEMPTION DIAL AMENDMENT.
MEETS OPPOSITION To AID PRODUCERS
UTILITIES OFF|C|AL'0F COTTON IS LOST.
Vice President Mitchell of
Alabama Power Company
Appears Before Senate
Finance Committee
STATE CAPITAL BUREAU !
THE AGE-HERALD
Montgomery, Ala, Jan. 10 !


Following an effort of Senator
Jones of Barbour to commit the SEN
ate TO a continuation of the session
without a long recess until the water
power exemption sections of the code
are repealed. r. A. Mitchell, vice
president Of the Alabama Power com
pany, and w. H. Merrill, division
counsel of the Georgia. Alabama
Power company, late Thursday after
noon appealed to the senate COM
mittee on finance and taxation not
to report favorably Senator Brow
er's bill repeating section 2069 of the
code, which exempts water power
development from taxation for Pc
riod of 10 years. After the discus
sion the committee deferred action
until later date, the members de-
string to give further consideration
to the bill.
Senator Johns offered a resolution
during the session of the senate
which bound the nembers not to con-
slider th6 long re&ess suggested = "
Governor Brandon until the exemp-
ton had been cancelled. The resoiu-
tion was carried by a vote of II to
16. but Immediately thereafter the
senate reconsidered its action by a
vote of 10 to 10. and the resolution
went to the rules committee.
Representative Sollie of Hale Of
fered a similar resolution in the
house, which provided that the tax
exemption would be cancelled by
February l. This resolution went to
the rules committee without debate.
Mitchell Opposes Move.
In his argument in opposition to
the bill repeating the water power
exemption, Mr.. Mitchell contended
that the policy of exemption is wise
because it brings into this state in
dustries which would not locate here
but for the wise legislation of the
state He declared that the code sec
ton granting the exemption was
not passed for the benefit of the
Alabama Power company, but was
passed prior to the organization of
the company.
Mr. Mitchell said the company re-
garded the exemption as an invita-
ton and an inducement to come into
this state, and acting on this invita-
ton it had invested between 100000
600 and $5O,000,000 here. He pointed
out that the cost of rates in Alabama
had been reduced 20 per cent by the
high electric development. while Mis-
sissippi, without hydro-electric pow
er, had reduced its rate only 8 per
cent during the same time. He fur
Their declared Alabama manufactur-
ers are saving between S3,o00,00O
and 100000 annually through the
use OF hydro-electric power
He mentioned that many large
plants are now using this power ana
the development is becoming greater,
saying that experiments are now be
ing conducted looking. toward the
manufacture of calcium arsenate by
electricity. He predicted that the per-
lection of the process will mean
saving of from SIS to 500 a ION to
the farmers.
Cotton Mills Coming
Mr.. Mitchell argued that cotton
mills have been located in North
Carolina in large numbers through
their exemption from taxation de-
clared that the tax assessments OF
North Carolina are now Sl00,0O0,ooo
greater than Georgia, Alabama and
Mississippi combined and that North
Carolina this year is spending 500
100000 on public education and Sfo'-
100000 on public roads without inn
posing a penny of advalorem taxa
ton on property.
He mentioned that 20 persons nave
been in Alabama recently looking
over SITES lot the loSdtioH "
tories as a result of the extention
work Of the Alabama Power company
and speaking directly to Senator
Craft of Mobile Mr.. Mitchell stated
that one cotton mill proposes TO
locate a factory for the manufacture
of articles for export and Is willing
to invest from s5.000,000 to 100000
600 Mr.. Mitchell said the Alabama
Power company is willing to abide by
any law which the legislature enacts
but does believe if the legislature In
its wisdom should decide to repeal
the exemption section, it should not
cause the law to apply to develop
ments already. made under the ex-
emption statute.
IN answer to direct question Mr..
Mitchell stated that whether the ex-
emptions are removed or not the con-
sumner must pay in the long run as
the company and all other public
utilities are permitted by law to in
clude money paid in taxes as part
of operating expenses and are al
lowed a fair return on the invest
ment after paying operating eA-
penses.
Cities England's Experience
Mr.. Merrill argued that the
Georgia Alabama Power company
cause its development to be in south
east Alabama with the understanding
that IL would be exempted from
taxation for 10 years. He said south
east Alabama needed hydro electric
because il was far re-
moved from the coal field and had
greatly benefited by the develop
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