University of South Carolina Libraries
THE LICENSE TAX HAS BEEN UPHELD ; ( SUPREME COURT RENDERS IMPORTANT DECISION. . ( Petition of British-American Mort- , gage Co. Claiming Exemption i Dismissed by the Court. (! ' (i News and Courier. Columbia, August 2.?The supreme c eourl lias reversed itself in the case ? of the British and American Mort- ( gage Company and Attorney General j Lyon has won a distinct legal victory. v flic court several months ago ren- s dcrod a decision which in oficd do- ,, clared the franchise License Act of ,, 1904 unconstitutional and would have j, deprived the state of a large revenue j| annually. Attorney General Lyon, j, representing Comptroller General u Jones, Iiled a petition for a rehear- p, iu.tr, which was "ranted, and upon (j( this hearing the court, has filed a sec- a] ond decision sustaining the position y taken hv Air. Lyon and holding the (,( (Act of 1004 valid. The first hearing of the ease, when the state lost its case, was before Mr. Lyon entered c, the Attorney General's office. The case was brought, by the British at and American Mortgage Company, a Y British corporation, to secure an in- re junction restraining the Comptroller Y General from collecting the tax of ci one-half of one mill upon the property of the company in this state, it he- PC ing alleged in the petition that the n, company did not transact its business j], in this state, (lie contracts being per- |j( ifeeted in New York. This was the j|, main point upon which the company's jn attorney, Mr. John I'. Thomas, Jr., of |j, Columbia, expected to win the ease, ji tile was one of the legisla!ivo commission which framed the Act of 1004 <>(l and he had no idea of' upsetting that s| law. Hut the court decided I lie ease upon an other point, holding that, the jj( Art of 1004 discriminated between (j{ foreign and domestic corporations, whereas in a previous Act under which foreign corporations were licensed st they were given all the privileges and w immunities of citizens of this stale. r It was held, however, that the su- of preme court had interpreted the Act si of 100M erroneously in that the said ,-1 Aet does not, in licensing foreign cor- <it porations, confer upon them all the ||| rights and immunities of private oil- ,?.\ izeus of this state, but confers upon pi such foreign corporations the rights w and immunities enjoyed by private bi citizens of other stales and of foreign X countries doing business in this slate. |( It was also pointed out that, the license so issued to a foreign corporation under eii the Act of I Si): 5 expires after twelve months and is renewed for each year, ^ and thai the court overlooked this i (. point, which differentiated the case of m the llritish and American Mortgage Company from the Colorado case on m which the supreme court had relied; s< in this case the license granted by the ()j state to tin.* Smelter Company being ... for a term of twenty years. >lf. The Attorney General on the re- ei hearing contended that in renewing oi the license each year the company (r did so with the restrictions and quali- ol Heat ions of the laws of this state in M force at that time: consequently when the license was taken out for 1004 it was subject to the provisions of the \ Franchise Tax Act of that year, which in had been enacted before the license for that year was urauted. The su- st preme court now sustains the con- hi I?*nIii?ns of the Attorney General on si both these points, which had not been taken into consideration in the former opinion. m The case, as slated above, was nr- tl gued for the state by Attorney Gener- !e al l.yoii and his assistant, Mr. M. 1'. at iVBruhl. ej While the first opinion rendered did " nut apply directly to any corporation '' except the British and American m Mortgage Company, it did in effect apply to all foreign corporations do- 111 iny business in lliis state, any one of 1,1 which could have applied for and ohtained a similar order. As a result ai the state wouM have lost about $70,- :1' /' 000 revenue IV..m the license tax. ol ! Soon after the first decision was rend- " ered tin Ware Shoals Company, a do- i( mestic corporatioi., applied for a sim- 1' ilar order, claiming that the domestic ' corporations would be otherwise dis- a criminated against in favor of foreign P corporations under this interpretation of the 1004 Act and this case is now pending. Attorney General Lyon was generally congratulated today on the win- '' ning of this case. Si Text of thrf Opinion. ^ The opinion of the court, which is n unanimous, is written by Associate , Justice Gary, who also wrote the previous opinion of the court in this case. rhis is an application to the court, in the exercise of its original jurisdie- s tion. for an order of injunction re- o strainimr the Comptroller General from enforcing the provisions of an .. . \ct entitled "An Act to require the! jayment of annual license fees by1 iorporalions doing1 business in this it ate, and reports to the Comptroller General." The petitioner is a foreign corporaion, the principal business of which s lending money upon mortgages of eal estate. On the 20th of Novcm>er, 1894, tlie petitioner filed a dclaration in the office of the secretary if state, in pursuance of an Act dela ring the terms on which foreign corporations may carry on business nd own property within this state, he Act being approved December 23, ; 80'}. The petitioner stated that it ! ras the owner of properly in this 1 tale; referring to the investments:' iade by il upon mortgages of real 1 slate, and designated its place of j i usincss in this state as the office of | ] s agent, Mr. K. K. Palmer, of Co- I im'bia. The declaration set forth { < le manner of doing business to be as t dlows: A person in South Carolina f [jsiring lo make a loan forwards his | plication lo I he home office in New i ork, and if the application is ac- t spied the notes and mortgages are ,] cepared in New York and sent to <" lis state to the applicant, who exe- j ites them in South Carolina and for- t ards them to New York with draft n lached, which draft is paid in New ] <>rk. According lo the terms of the f nil-act the debt is payable in New t ork and is collected and paid in that n tv. ; The first question considered by the o mrt was whether the facts show that t e petitioner was doing business in ] is slate, Justice fiarv quotes Sec- e in 1787 of the Code, which provides v at it shall be a condition precedent li the right of any foreign corporami to do business in Ihis stale that | shall be presumed as a fact and | irl of any contract between such j ;1 irporntion and any cili/.cn of this M ale that the taking of any fee or n lynient. from any citizen or corpora- (] mi of this slate shall constitute the ( )ing of ils corporate business in | lis stale, and that the place of the aking and of tlic performance of j ich conlraet shall lie deemed lo be v it bin Ihis si ale, and I hat anything j litainod in the contract or the rules ( the corporation to I lie contrary v tall not lie of force. This section early shows that the petitioner was | dug business in Ihis slate. F,ven if | is sI ai ii(e had not been enacted the >j rercise by the petitioner of the cor rale functions before mentioned j ould have constituted the doing of s isiness in this state. Chattanooga | alional Hank vs Denson 108. U. S. 18. This decision is considered at | une length in ils application to the ise under discussion. The next (|ueslion is whelher the el of 1004 is in violation of the conact by which the petitioner was perilled to do business in this state, v hen the petitioner was granted per- |, ission to carry on its business in this ale the Act of 1888 and 1802 were force, certain provisions of which ' ere incorporated in the Code of 1002 ~ i Section 1,800, providing* that for- I1 gn corporations doing ail insurance ' loan business shall pay to the comp- ' idler general an annual license fee .$100 on or before the 151st day of arch. The petitioner paid the li nse fee. When the petitioner was anted permission to do business the ct of 180."I was also effective, providg thai foreign corporations duly in- . rporaled under the laws of other . ales or countries are permitted to cale and carry on business iu this ate in like manner "as the natural i ll citizens of the states of the I'nit1 Stales, or of such foreign country ight do under the law existing at ie time, subject nevertheless to the this and conditions in lliis Act hereter set forth." This provision beuue Section 1.770 of the Code. Seeon i of the Act of ISO:? provides iat foregin corporations doing busi- li .'ss in this state sluill be subject to " ie laws of this slate, but are not per- ' it led to exercise any franchise or ' i.joy any privilege or immunity otli hau t he right to own property id carry on business in like manner - individuals, natural born citizens f such state of the lulled States or f foreign countries might do and sub>c| to the. terms and conditions of lis (dmpier. This is now Seel ion 1,!'0 of the Code. The Acl of 1S!>.'? was men.led in 1004 by an Acl which , rovides thai every corporation or- i anized under the laws of this state > do business for profit, excepting nil road and express companies, etc.. 11a 11 upon the filing of the report re- * uired of them in Section 1 of the !tme Act. pay to the State Treasurer n or before the first day of April in * ach year an annual license fee of ne-half of one mill upon each dollar aid into the capital slock of said orporation, said fee to he not less ban in any ease, every foreign ' rporalton doing business in this'] late is required lo pay i) licence fee ; f 1-2 of one mill on each dollar of ; he value of its properly in this state, i The petitioners attorneys relied up- < on tin* of \?j s, ami i{. i'?t ,.. < olorado ox rel. Liudsiey, 27 Sup < t. ljep, 108, ill wliielt it was held that the right Jo do business in Hie state, without being subject to anv yi eater liabilities tliau I hone imposed on domestic corporations was acquired bv a foreign corporation upon its admission int?? the state of Colorado under the laws then of force, which subjected foreign corporations to the liabilities, restrictions and duties imposed on domestic corporations of like character, and that such ri-hl was impaired by ail Ad of that stale subsequently enacted, which required such corporation to pay an annual license fee in double the amount inipos'd on domestic corporations. The respondents' attorneys cotilendcd thai Section 7 of the Act of 1893 prescribes the terms upon which orci.un corporations are permitted to lo business in this state, to wit. thai J'*'.v ??' subject to the laws of jus state. The opinion points onl hi|t Sections 1 and 7 of (his Act are nconsistent, and it would he dilliculr o reconcile them. I| appears, sa\> justice Onry, that the Legislature lid not hold the view that it had laced foreign and domestic corporaions on the same footing, hence the icccssity for passing the Act of 10(11. *nt conceding that such was the efect of Section 7, the Act of 1904 di>inguishes between foreign and domestic corporations. .Section 4 of the U't of 1001 places a lax of one-half f one mill upon each dollar paid in 0 the capital stock of ;i domestic corporation. but in the case of a foreign I orporat ion I his tax is placed on the ! alue of the property within the stale! elonging lo the foreign corporation.' The respondent's attorneys con-I ended that the slate has the right lo J rescribe I he conditions upon which j foreign corpovat ion may do busi-! ess iii this stale; even when tliev are I "ore burdensome than those placed I m a domestic corporation, which the ourt holds cannot he denied; also J hat 1 lie license granted the petitionr in .1804 expired on the 31st of larch, 1805, and when the license I k'as granted in each subsequent year! I expired within twelve months; thai lie granting of the license each year k'as a new contract, and when the ?et it ioner look onl a new license in ! 001 ii was subject lo the Ad of; f'O-l. which was approved on the! .'Olh of February. 100 I. "After lm.-! a refill consideration." says the opinon, "wo have reached the condition that this objection must be siisained. Tt is the judgment of the court. ' he re fore, Shut the petition be disnissed. ,7 |f TEACHER WANTED. I he patrons of Vaughnsville school nil meet at the Vaughnsville school ouse oil August 10th., at 3 p. m.. to led a teacher for the eomintr vear. ial.irv $40 per month, school io run or 8 months. Those wishing in ap >ly for (lie school will please send licir applications to the undcmmicd rustees. r. A. Brook*. K. C. Sailer. Henry Workman. TEACHER WANTED. The undersigned desire to secure a eacher for the coming year for Lcng iane school. Opens October 1. Term ' ven months. Salary, thirty dollars 'cr month. Dr. M. A. Ronwielv. < 'hairman, C. K. Baker, II. T. Brock, T ruslees. Barbecue at Keitt's Grove. Wo. the undersigned, will uive a irst class barbecue in (lie oak irrove I. W . Keitt, Thursday, August 8. lie guns of |he county are invited o be present, Xowberry. St. Phillips, silver Street a d Whitmire. Tos. L. Keitt, Jas. I). Xance, ( . L. Leit/.sey, iTno, A. Cromer, S. J. D. Priee. Arrival and Departure of Trains. Schedules of passenger trains iw >?d out of the Union Station, Xew>crry, S. C. Southern Trains, STo. 15 for Greenville .... 8.50 a. in. 12 for Columbia 10 32 a. m.' <0. IS for Columbia 1.50 n m ^0. 10 for Greenville .... 1.35 m STo. 11 for Greenville 4.42 n m' tfo. .1(5 for Columbia .... 0.17 p. m. 0., N. & L. Trains. 8.) for Laurens .... 5.10 a. m. S'o. 22 for Columbia .... ,9.47 a ,n \'o. 1)2 for fSrectiville ..1l? hi p. m. So- Columbia ;{ 10 ? m 21 for u,mns .... 7^5 ; ; So. 81 for Columbia S.30 p m The foregoing schedules are given >nly for information, arc not gunran. toed and arc subject to change without notice. July 15, 1907. G. L. Robinson, Station Master. a "Bilious Attack." Symptoms. Sour stomachy nasty taste in mouth, sick headachc, sallow complexion, the world your enemy. OatlSC. Constipation, inactive liver, overflow of bile into the system. Relief. Treatment for two nights before retiring with AND TONIC PELLETS One a night, don't worry, sleep well and Nature'll do the rest. Entire* Treatment 2,5 Ctt. JAMESTOWN EXPOSITION. Rates from Newberry S. C., as follows : Season Ticket $10.55. Sold daily April 19th to November 30th. GO Day ticket $10.30. Sold daily April 19th to November 30th. 15 day ticket $14.30. Sold daily April 19th to November 301 h. Coach Excursion $8.55. Sold each I uesday; limit 10 days. Endorsed. Nui good ju parlor or sleeping cars.'' Through 1'ullnia:; sleeping cars, via Atla-.tie Cr.-t I,mo Wa:lroad cotnpauy. WiMc for ;i ?iJ"*i! illustrated tolder co!i:a:n.n.r ma'is. descriptive mater, li-i of Hotel, etc. I*or reservations or any infounation. Address, T. C. White, General Passenger Agt. W. -T. Craig, Passenger TimfTic Manager. Wilmington, N. C. your" liver is your best friend or your worst enemy. ^ Active it's your friend. Torpid^ it's your enemy, and ita army is Constipation, Biliousness, Sick Headache, etc. ramonsj)|lls AND TONIO PHLLKl'S make active, strong and healthy livers, preventing and relieving liver troubles. Complete Treatment 23o. W. G. Mayes & Prosperity Drug Co. and get your money back if not satisfied, oauiple tube and Booklet by mail ioc. ' ! ft. brown Mr-G CO.. ot. Louis,Mo. GrecnovllU T... | i tob^aqco i ' |j IS a delicious chew, || ||j a leaf that has a spec-1!' | ial texture, a special H;' m flavor and wnichH ||makes^RED EYE aaHj< II Most people ^prefer it fl j to tobacco costing one I insist on him keeping it. MERCHANTS I Write for Special Prices. H 8Wtobacco MF&JS A 11 11 naw KT.ron t\r JTT.?GU.Y?U/V7rst/. v v < / CHARLESTON & WESTERN OAIl OLINA RY. Schedule in effect June 91V 1907. Lv. Newberry(C 11 & L.) 12:-l(' p. m. 4 J . / - ' ' ' 4' v ' ) Ar. Laurens 1:52 p. in. Lv. Laurens (C. & W. C.) 2:15 p. ra. 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. in. Ar. Ilendersonville 0:25 p. ni. Ar. Aslieville 7:30 p. m. Lv. Laurens (C. & W. C.) 2:00 p. in. Ar. Greenwood 2:56 p. in. Ar. McCormick 3:55 p. m. Ar. Augusta 5:40 p. m. Pullman Chair Cars between Augusta, Laurens and Asheville, triExSi : FR< Anderson, Sparta And Intermediate Poin ing, AIs ISLE OF AND RET SODTHBBH Tickets to be sold for gust 6th and limited to i on any regular train no 1907. Opportunity to visit m the Atlantic coast; also of the historic old city c Apply to any agent. Div, Pass, / NEWBERRY Class Scier Tech Expenses very moderai surpassed. For catalog dent, JA, III! SHIMS FDE POINTS OF EXCELLENCE Thorough instruction. University in library. Excellent laboratories. B fulness. Honor system, Full litei courses. Degrees of A. B. and B. ^ Next session opens September i8th, LEE DAVIS L< J GO TC FC ? Dry Goods, CI Oxfords, Dres % Pants, Shirts, * something spe' ^ We are located in V ^ stand opposite New* <$> next door to Geo. $ stand. i-'i"' :'L,1 '' - 7 1 iveokly. I/eavo August a Tuesdays, IJ Thursday and Saturdays jleave Aslievillo Mondays, Wednesdays and Fri- If days. V Noto: The above arrivals and departures, as well as connections with other companies, are given as infor- \ raation, and are not guaranteed. Ernest Williams, Gen. Pass. Agt., Augusta, Qa. Geo. T. Bryan, Greenville, S. C. Gen. Agt., W .OO I ?SION J OM : Greenville, nbuig : ts as far as, and includston to PALMS URN VIA ,-J BAILWAI. N any regular train of Aureturn from Charleston t later than August llth, ost delightful resort on enjoy the attractions Charleston. R. W. HUNT, ^gt., Charleston, S. C. COLLEGE. iical! itifici nical! te. Health record ungue address the PresiS. A. B. SCHERER, Newberry, S. C. WOMEN, Daffn?y, S. C. J:?Hiigli Standard. Able faculty, lethods. Fine equipment. Splendid eautiful site. Unsurpassed healthao 1 scientific, musical and artistic 1. Winnie Davis School of History. T907- Send for catalogue. DDGIv A. M., Ph. D. President. ) THE ^1 9 IE * )R J I othing, Shoes, J s Goods, Odd I 1 Underwear, ? cial every day. T. Tarrant's old ? aerry Savings Bank, Z D. Davenport's old ^ , Proprietor. \ ( m