The Birmingham age-herald., 1923-03-11
THE TAX EXEMPTION FALLACY

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 THE TAX EXEMPTION FALLACY
 The Opelika Daily News is a journal which is courageous and outspoken in it's opinions on public questions. It is factor of great influence in It's community, and doubtless owes that influence to the com munitys well-founded confidence in its sin- cerity of purpose. It is believed, however, that the Opeika daily, as regards the re- gently repealed tax-exemption for water power companies, has been misled by certain journalistic statements calculated to favor the power company as against the public interest and the policy of our legislature. In recent editorial the Opelika Daily News speaks of radical assault upon one in- dustry in the state, and carrying that as- sault so far as to repudiate the pledged honor of the people of the state," and re- fers to the legislative repeal of water power exemptions as the "axe of wrath" We feel sure that the Opelisa journal will consider the other side of the picture, which is that the legislature is entirely within its rights and authority and acting in accordance with legal and constitutional precedent when it repeals such laws Indeed, although there are many minor exemptions in this state, it is an open question whether such exemp- tions are really constitutional, as indicated by Section PIT of the Alabama constitution. which says: Property of private corpora tions, associations and individuals of this state shall forever be taxed at the same rate, provided this section shall not apply to in- stitutons devoted exclusively to religious, educational or charitable purposes" As The Age Herald said on February 8, "mani- festly the legislators may in all honesty have held that the tax-exemption statute is in violation of the spirit if not the letter of this section"
 Further, the Opelika Daily News expresses the belief that the Alabama Power Company should "be protected against radical inJus- tice and from special punitive legislation" Everybody will agree to that. for there is noedisposition in this state, either in the leg islature or outside, to be unjust to capital investment or to industry. The thriving condition of all our great industries, includ- ing the Alabama Power Company, is suf- ficient proof of that. But when the Ala bama legislature is accused of radical in jus tice and of passing punitive legislation when it repealed the water power exemption statutes, the ability of The Age-Herald to agree with the sentiment ends. The foundation on which The Age-Herald bases it's opinion is found in decisions of the United States supreme court on this very question. Witness the case of Welsh versus Cook, 79 U. s. 541, in which the court held: "Nor are we able to say that this action involves breach of faith towards the owner of the manufacturing property, conceding, as the plaintiff must and does, that the ex- emption of his property was of the bounty of the legislature. He knew when he ac- cepted it that it was liable to be revoked whenever the local legislature or congress should be of the opinion that the public interests demanded such action." Who is there can testify that the Alabama legsla- ture did not sincerely have the public well fare in mind when it revoked the water power exemptions?
 Surely the people of Alabama and the public welfare of Alabama need defenders 7 far more than the Alabama Power Company, which is specifically organized to fight its own battles. It is significant that when the power company was on the point of receiv- ing an unjust and an unwarranted increase in it's property valuation for rate-making purposes, there was in certain quarters a deep journalistic silence in regard to the public welfare, but when the valuation was nullified there at once broke out a stream of apology for the power company and propaganda against the legislature and its alleged unfriendly attitude towards indus try. It is the duty of the press of this state to guard against that propaganda, to combat it, and to defend the legislature and the name of Alabama from such mischievous attack.