Historical Newspapers of South Carolina

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THE LICENSE TAX HIS BEEN UPHELD SUPREME COURT RENDERS IM PORTANT DECISION. Petition of British-American Mort gage Co. Claiming Exemption Dismissed by the Court. News and Courier. Columbia, August 2.-The supreme court has reversed itself in the case of the British and American Mort gage Company and Attorney General Lyon has won a distinct legal victory. The court several months ago ren dered a decision which in effect de clared the Franchise License Act of 1904 unconstitutional and would have deprived the state of a large revenue annually. Attorney General Lyon, representing Comptroller General Jones, filed a petition for a rehear ing, which was granted, and upon this hearing the court has filed a see ond decision sustaining the position taken by Mr. Lyon and holding the *ct of 1904 valid. The first hearing of the case, when the state lost its case, was before Mr. Lyon entered the Attorney General's office. The case was brought by the British and American Mortgage Company, a British corporation, to secure an in junction restraining the Comptroller General from collecting the tax of one-half of one mill upon the proper ty of the company in this state, it be ing alleged in the petition that the company did not transact its business in this state, the contracts being per fected in New York. This was the main point upon which the company's attorney, Mr. John P. Thomas, Jr., of Columbia, expected to win the case. He was one of the legislative commis sion which framed the Act of 1904 and he had no idea of upsetting that law. But the court decided the case upon an other point, holding that the -Act of 1904 discriminated between foreign and domestic corporations, whereas in a previous Act under which foreign corporations were licensed they weret given all the privileges and immunities of citizens of this state. It was held, however, that the su preme court had interpreted the Act of 1903 erroneously in that the said * Act does not, in licensing foreign cor porations, .confer upon them all the rights and immunities of private cit izens of this state, but confers upon rsuch foreign corporations the rights and immunities enjoyed by private citizens of other states and of foreign countries doing business in this state. It was also pointed out that the license issued to a foreign corporation under - the Act of 1893 expires after twelve months and is renewed for each year, and that the court overlooked this point, which differentiated the case of the British and American Mortgage Company from the Colorado case on which the supreme court had relied; in this case the license granted by the 'state to the Smelter Company being for a term of twenty years. The Attorney General on the re hearing contended that in renewing the license each year the company did so with the restrictions and quali ficationis of the laws of this- state in force at that time; consequently when the license was taken out for 1904 it was subject to the provisions of the Franchise Tax Act of that year, which had been enacted before the license for that year was granted. The su preme court now sustains the con tentions of the Attorney General on both these points, which had not been - taken into consideration in the for mner opinion. The case, as stated above, was ar gued for the state by Attorney Gener al Lyon and his assistant, Mr. M. P. DeBruhl. 'While the first opinion rendered did not apply directly to any corporation except the British and American Mortgage Company, it did in effect apply to all foreign corporations do ing business in this state, any one of which could have applied for and ob tained a similar order. As a result the state would have lost about $70, 000 revenue from the license tax. Soon after the first.decision was rend ered the Ware Shoals Company, a do mestic corporation, applied for a sim ilar order, claiming that the domestie corporations would be otherwise dis criminated against in favor of foreign corporations under this interpretation of the 2904 Act and this case is now pending. Attorney General Lyon was gener* ally congratulated today on the win. ning of this case. Text of the Opin.ion. The opinion of the court, which is unanimous. is 'written by Associate Justice Gary. who also wrote the pre. Viouls opinion of the court in this case. This is an application to the court, in the exercise of its original jurisdie tion. for an order of injunction re strainin:r the Comptroller Genera' Act entitled "An Act to require the payment of annual license fees by corporations doing business in this state, and reports to the Comptroller General.'" The petitioner is a foreign corpora tion, the principal business of* which is lending money upon mortgages of real estate. On the 26th of Novem ber, 1894, the petitioner filed a de claration in the office of the secretary of state, in pursuance of an Act de claring the terms on which foreign corporations may carry on business and own property within this state, the Act being approved December 23, 1893. The petitioner stated that it was the owner of property in this staite; referring to the investments made by it upon mortgages of real estate, and designated its place of business in this state as the office of its agent, Mr. E. K. Palmer, of Co lumbia. The declaration set forth the manner of doing business to be as follows: A person in South Carolina desiring to make a loan forwards his application to the home office in New York, and if the application is ac cepted the notes and mortgages are prepared in New York and sent to this state to the applicant, who exe cutes them in South Carolina and for wards them to New York with draft attached, which draft is paid in New York. According to the terms of the contract the debt is payable in New York and is collected and paid in that city. The first question considered by the court was whether the facts show that the petitioner was doing business in this state, Justice Gary quotes Sec tion 1787 of the Code, which provides that it shall be a condition precedent to the right of any foreign corpora tion to do business in this state that it shall be presumed as a fact and part of any contract between such corporation and any citizen of this state that the taking of any fee or payment from any citizen or corpora tion of this state shall constitute the doing of its corporate business in this state, and that the place of the making and of the performance of such contract shall be deemed to be within this state, and that anything contained in the contract or the rules of the corporation to the contrary shall not be of force. This section learly shows that the petitioner was doing business in this state. Even if, this statute had not been enacted the exercise by the petitioner of the cor porate functions before mentioned would have constituted the doing of business in this state. Chattanooga National Bank vs Denson 198, U. S. 40S. This decision is considered at some length in its application to the ase under discussion. The next question is whether the Act of 1904 is in violation of the con tract by which the petitioner was per mitted to do business in this state. When the petitioner was granted per-' mission to carry on its business in this state the Act of 1888 and 1892 were of force, certain provisions of which were incorporated in the Code of 1902 as Section 1,800, providing that for eign corporations doing an insurance or loan business shall pay to the comp troller general an annual license fee of $100 on or before the 31st day of March. The petitioner paid the li ense fee. When the petitioner was granted permission to do business the Act of 1893 was also effective, provid ing that foreign corporations duly in corporated under the laws of other states or countries are permitted to locate and carry on business in this state in like manner "as the natural born citizens of the states of the Unit ed States, or of such foreign country might do under the law existing at the time, subject nevertheless to the terms and conditions in this Act here after set forth.'' This provision be came Section 1,779 of the Code. Sec 1tion 7 of the Act of 1893 provides. that foregin corporations doing busi ness in this state shall be subject to the laws of this state, but are not per mitted to exercise any franchise or enjoy any privilege or immunity oth er han the right to own property and carry on business in like manner as individuals, natural born citizens of such state of t.he UTnited States or of foreign counties might do and sub jet to the. termas and conditions of this chapter. This is now Section 1, 790 of the Code. The Act of 1S93 was amended in 1904 by an Act which provides that every corporation or zanized under the laws of this state to do business for profit, excepting railroad and express companies, etc., shall upon the filing of the report re quired of them in Section 1 of the same Act, pay to the State Treasurer on or before the first day of April in each year an annual license fee of one-half of one mill upon each dollar ;aid into the capital stock of said corporaion. said fee to be not less 'han $5 in any case. every foreign aroraiondoi j usineCss inl this state is required to pay g license fee of 1-2 of one mill on each dollar of *he valute 'f its prop erty in this state. colorado ex rel. Linid.-ley. 27 Siip Ct. Rep, 108. in whivh it was held that the right to () business in the state. without being subjeet to any greater liabilities than those imposed on domestic corporations was aequir ed by a foreign corporation upon its admission into the state of Colorado under the laws then of force, which subjected foreign corporations to the liabilities, restrictions and duties im posed on domestic corporations of like character, and that such right was impaired by an Act of that state subsequently enacted, which required such corporation to pay an annual li eense fee in double the amount impos ed on domestie corporations. The respondents' attorneys con tended that Section 7 of the Aet of 1893 prescribes the terms upon which foreign corporations are permitted to do business in this state, to wit, that they should be subject to the laws of this state. The opinion points out that Sections 1 and 7 of this Act are inconsistent, and it would be difficult to reconcile them. It appears, says Justice Gary, that the Legislature did not hold the view that it had placed foreign and domestie corpora tions on the same footing, hence the necessity for passing the Act of 1904. But conceding that such was the ef feet of Section 7, the.Act of 1904 dis tinguishes between foreign and do mestic corporations. Section 4 of the Act of 1904 places a tax of one-half of one mill upon each dollar paid in to the capital stock of a domestic cor poration, but in the case of a foreign corporation this tax is placed on the value of the property within the state belonging to the foreign corporation. The respondent's attorneys con tended that the state has the right to prescribe the conditions upon which a foreign corporation may do bu,i ness in this state; even when they are more burdensome than those placed on a domestie corporation, which the court holds cannot be denied; also that the license granted the petition er in 1894 expired on the 31st of March, 1895, and when the license was granted in each subsequent year it expired within twelve months; that the granting of the license each year was a new contract, and when the petitioner took out a new license in 1904 it was subject to the Act of 104, which was approved on the 29th of February, 1904. ''After most careful consideration.'' says the opin ion, ''we have reached the conclu sion that this objection must be suls taned.''. It is the judgment of the court, therefore, that the petition be dis missed. J- H TEACHER WANTED. The patrons of Vaughnsville schoo] will meet at the Vaughnsville school house on August 10th., at 3 p. in., to elect a teacher for the coming year. Salary $40 per month, scho,ol to run 7 or 8 months. Those wishing to ap ply for the 'school will please send their applications to the undersigned trustees. C. A. Brook'. E. C. Saller. Henry WTorkman. TEACHER WANTED. The undersigned desire to seeure a teacher for the coming year for Lcng Lane school. -Opens October 1. Term seven months. Salary, thirty dollars per month. Dr. M. A. Renwick, Chairman, C. K. Baker, H. T. Brock, Trustees. Barbecue at Keitt's Grove. We, the undersigned, will give a first class barbecue in the oak grove of T. W. Keitt, Thursday, August 8. The guns of the county are invited to be present, Newberry, St. Phillips, Silver Street a- d Whitmire. Jos. L. Keitt, Jas. D. Nance, C. L. Leitzsey, Jno. A. Cromer, S. J. D. Price. Arrival and Departure of Trains. Schedules of passenger trains in and out of the Union Station, New berry, S. C. Southern Trains. No. 15 for Greenville .. .. 8.56 a. m. No. 12 for Columbia .... 10 32 a. m. No. 18 for Columbia ... . 1.50 p. m. No. 19 for Greenvil-le .. .. 1.35 p. m. No. 11 for Greenville . ... 4.42 p. m. No. 16 for Columbia .... 9.47 p. m. C., N.'& L. Trains. No. 85 for Laurens .... 5.19 a. m. No. 22 for Columbia .... 8.47 a. m. No. 52 for Greenville . .12 46 p. m. No. 53 for Columbia .... 3.10 p. m. No. 21 for Laurens .... 7.23 p. m. No. 84 for Columbia .... 8.30 p. m. The foregoing schedules are givenl teed and are subject to change wid out notice. July 15, 1907. G. L Robinson, Station Master. A "Bilious Attack." Symptoms.sour stomach, nasty taste in mouth, sick headache, sallow compler. ion, the world your venmy. Cause. Constipation, inact.. ive liver, overflow of bile into the system. Relief. Treatment for two nights before retiring with A TONIC PELLEIS One a night, don't worry, sleep well and Nature'll do the reat. Entire Treatment 25 Cta. JAMESTOWN EXPOSITION. Rates from Newberry S. C., as fol lows: Season Ticket $19.55. Sold daily April 19th to November 30th. 60 Day ticket $16.30. Sold daily April 19th to November 30th. 15 day tieket $14.30. Sold daily April 19th to November 30th. Coach Excursion $3.55. Sold each Tuesday; limit 10 days. Endorsed. "Not good in parlor or sleeping cars." Through -Pullma:: sieeping cars, via Athi: tie Co;;t Line Railroad company. Write for a Oeaitifn: illustrated folder en:ainii ma'.'s. d escriptive mater, li..t of Hotel, etc. For reservations or any infoima tion. Address, T. C. White, General Passenger Agt. W. J. Craig, Passenger Tieffic Manager. Wilmington, N. C. YOUR LIVER is your best friend or your worst enemy. Active it's your frend. Torpid it's your enemy, and its army is Constipation, Bdiouaw Sick Headache, etc. make active, strong. and healthy livers, preventing and relieving liver troubles. 'Complete Treatment 25. W. G. Mayes & Prosperity Drug Co. andgetyourmone backifnotsatisde. Sample tube and ~okIet by mail xoc. St. LuMo. GO.aur1liTeaa. TO BAOOO I S a delicious chew, 5made from the best North Carolina leaf; a leaf that has a spec ial texture, a special flavor an d w ich makes RED EYE a specially fine and satis fyingchewingtobacco. Most people prefer it to tobacco costing one dollar per pound. Ask your dealer for it and insist on him keeping it. I MERCHANTS 1Write for Special Prices. TBAcco MFRS' CHARLESTON & WESTERN CAR OLINA RY. Schedule in effect June 9th, 1907. Tv. Nwherryv(C N & L.) 12:46 p. m, A r. Lauirens 1:52 p. m. Lv. Laurens (C. & W. C.) 2:15 p. m. Ar. Greenville 3:40 p. m. Lv. Laurens 1:58 p. m. Ar. Spartanburg 3:30 p. m. Lv. Spartanburg (So. Ry.) 3:40 p. m. Ar. Hendersonville 6:25 p. m. Ar. Asheville 7:30 p. m. Lv. Laurens (C. & W. C.) 2:00 p. m. Ar. Greenwood 2:56 p. m. Ar. McCormick 3:55 p. m. Ar. Augusta 5:40 p. m. Pullman Chair Cars between Au gusta, Laurens and Ashevillp, tri $6 EXCUI --: FR( Anderson, Sporlo And Intermediate. Poin ing, Ah, ISLEOF AND RET SOUTHBR .N Tickets to be sold for gust 6th and limited to on any regular train no 1907. . Opportunity to visit r1 the Atlantic coast; alsc of the historic old city< App'y to any agent. Div. Passa NEWBER R Clas: Sciei Tec2 Expenses very modera surpassed. For catalo dent, JA POINTS OF EXCELLENCI IThorough instruction. University n library. Excellent laboratories. I fulness. Honor system, Full lite courses. Degrees of A. B. and B. J Next session opens September 18th, - LEE DAVIS L eGO T( (BEE" * ry Goods, Cl e Oxfords, Ores SPants, Shirts + something spe * We ar elocated in '5 stand opposite New ,next door to Geo. g. stand. E. L BAILES weekly. Leave Augusta Tuesdais, Thursday and Saturdays ;leave Ashe ville Mondays, Wednesdays and Fri-. days. Note: The above arrivals and de partures, as well as connections with other companies, are given as infor mation, and are not guaranteed. Ernest Williams, Cen. Pa-s. Art., Augusta, Ga. Geo. T. Bryan, Greenville, S. C. Gen. Agt., ~SION )M: Greenville, nburg ts as far as, and includ 3ton to PALMS URN VIA RAIL WAY any regular train of Au return from Charleston t later than August I th, ost delightful resort on enjoy the attractions ~f Charleston, R. W. H UNT, ~gt., Charleston, S. C. COLLEGE. ~iCal! itific! . . niCall te. Health record un gue address the Presi S. A. B. SCH ERER, Newberry, S. C. ~:-Hiigh Standard. Able faculty, ethods. Fine equipment. Splendid eautiful site. Unsurpassed health ary, scientific, musical and artistic if. Winnie Davis School of Hidtory. 1907. Send for catalogue. 3DGE A. M., Ph. D. -President. HIVEI! othing, Shoes, + s- Goods, Odd * ,Underwear, * cial every dlay. + . T. Tarrant's old erry Savings Bank, * D.n Davenport's old* ,Proprietor.