OFFICE OF THE ATTORNEY GENERAL OF TEXAS 

AUSTIN 

Honorable Vfilllam J. Larnon 

Seoretarg of State 

Austin, Texas 

Dear Sir: Attention; Claud 

to z8aov8r additlondl 

dot, which had been 

n goes rsoelptr ala&&l 

88 done In Inter-State ComIn favor or the plfilntlfis 

tlon ~sult brought by ,Che 

y In Cause no. 60266 and 

In the 98th Dietriot Court oi Travis 

ditlonal rranohi8e taxes paid undrr 

had b88n alrasesed on the bade o$ 

pt8 olalmed a8 belne derived from 

n Inter-Stats Ccsameroe. The plaintIf? 

the Southern Pins Lumbsr Compeny suit 

are member8 oi ~ths Teraa Btat8 Maauraoturera A88oslition. The Amooiatlon ha8 e8ked p8rmi88ion Of the 

Seoretiary or State to allow on8 or their r8pre8entatiTf38 to iuqmot the 18d&Sr 8hOst8 Or this oftie ?Or 

the plil'pO8e or ooaiplllllg a li8t of the oorporatiozie rho 

are not memb8rs Oi the T8Xa8 State MalAuiaOtWlrer8 A8800:8- 

tlon and who paid, wlthout prote8t, th8 additional traaOhi, tax a8B8888d in 1938 on the ba8i8 d 100% Of th8ir 

@OS8 reOtlipt8 being d8rired fiOlll bailin done in T8Xa8. 
577 

Honorable William J. Lmmoa, pago 2 

“tJZld8r Art. 7089 O? th8 R8t188d Statute8 uhloh 

8aJ8 in paft: 'aaid r8pOrt 8ha11 be d8emsd to b8 

prlvlleged and not for llupeotlon by the general 

publlo', ato., would thi8 off100 hare ths authority 

t0 pumit iII8p6OtiOn Of the 18dgar aOOOIiIIt of the88 

oorporatlon8?~ 

Art1010 7089 of th8 R8vi8ed Civil Statute8 oi 

T8xa8, 1925, a8 emended, and r8?U?8d to in your 18tt.r. 

r8ads a8 fOuOw8: 

Said report 8hill b8 demed to b8 privilag8d iid'& ror the iwpeotltm of Ohs general tiblio, 

but a bona rid8 8tOOkhOldu Oming 0llb pm 08llt P 1s) 

Or more Ot th8 outrtlrrding 8to@k Of any OorporatiQ, 

B6J 8XS4lkin8 8uOh r8tUWl6 UpOn pZ88@QtatiUCl Of @?id8Qe8 

Oi 8uOh Ownezrbip t0 th8 #*0?8krl of 8tat8. NO Oth8r 

8X8min8tiOn, diSOlO8luO8, or ~80, 8hall b8 p8zrittad 

Of raid report8 8XOept ill the 0-88 Of 8QO jodloial 

pxOOQding8 hi uhlah the stat8 18 a gmrty or iII a 8Idt 

by the state to OanOal th8 p8rrit or fOTf8lt th8 OhUt8r 

of 8uoh oorporation or to soueot penalties for a riolatlon of the law8 of thi8 Btat8, or ror lnform8tlon of 

mhy offioer, Of this State ohargad wlth tha enforoar8nt 

Of it8 tiw8, Ineluding th8 @mptrOue@ Of Pub110 AOOOMt8, 

State Auditor and the dtata Tu h~unis8ioner. . . .* 

We hare oaretullp examined Chapter 3 of Title 122 

of the R8vi8ed Civil Statute8 of T8%a8, and W8 hare be8n 

unable to find any statute whioh 8p8alfiO~iy make8 a ledger 

sheet aooount a pub110 reoord and open to the inspeotion of 

the general publlo. 

We are adrillsd by your Departmnt that tha ladgm 

sheet8 are used in International tabtilatlng machine8 and OOntaln a reoapltuletlon, or at least refleot sum8 of the data, 

which IS 8hOwII by the franOh tax report required to be 

?il&i under Chapter 3 of aald.Title 122 of the Revised Civil 

Statutes of Texas. It will 8how a composite record o? data, 

dates, other material and pertinent lb?orm8tiOn used by your 

offtoe In making it8 oaloulation to 8how the amount of rranoh.588 tax due, the date8 of'any paym8ht theroot, the emOUllt, 

If any, paid under protest and auy 8.mount which might b8 baok 

aesessed by the Seoretary of State or knj fkmount which might 

be a88e6Ead in addition to the ainount Of tax a8 QalOtiatOd 

by the oorporatlon In Its franohlse tax report filed with th8 

Seoretiary or State. It will, ln a propox oa8o where tha 
Honorable William J. Lawson, paga 3 

OOrpOratlOn ha8 bsoome dsllnqueat in the p~ment ai it8 

iranOhi8a taxs8, 8how the date and the aat of th8 

Ssoretary of State in forfsltlng the corporation*8 right 

to do businees in the State, In the manner 8pOOifiO~lp 

provided in Arti 7091 Of said Chapter f of Tit18 122, 

R.C.S. of Texas. 

We are oonpelled to the 00n0lu8i04 that th8 

legirlatmr iutanded, by the 8naotr44t of Mtio~8 7089, 

8UpZfA, t0 pl'8teJit the gNI8ral pub110 from b4Vlag 1100.88 

to the rrauohise tax re ortr r4qoir8d to be filed dth 

the SaOretex~ of State ii y any boae8ti.o or foreign oarparation, and in addition thereto that the 8oope of th8 

atatuts would apply to any other x8OOxd8 whioh rotlaot 

any data (II inioraation takea from #aid fPMOhi84 tu 

It 18 evid8nt that the lsg%8lativ8 purpO44 14 

~%%ng that the report8 4hould b8 ritll4@d ?rw 

g844ra.l pub110 in8p4OtiOa ~48 @brie E. d44igmd to 

prermt persons from lnqulring into th8 iinanoial 4t8tu4 

of a oorporation, poarfbly to it8 8ubarra44444t, and that 

i ruoh UI in4p8OtiM WI8 proh:b&tad in the tllt8r88t Of publie polloy., We bellare that tha~ledgro 8hWt8 of l aoh 

obrporat~on aoootmt ara autitlad to the 4am8 immuulty 

-' trora iIl8PaOtiOL To hold Otharvi84 would, w thialt, be 

authorleing that to be done lndlrwtlp rhloh 18 db8OtlY 

and ex&ewl.y forbidden by the obahut8. There 14 nothing 

to prevent a pemti, who la famil~u with the tax tat8, 

and rho i4 glva4 th8 total anion& Of the tax l 4 804 4 ed by 

the Seomtarp of Stats, fran figuring baok to the oapital 

4truatum of a aorporatlon, which 18 among the thing4 the 

8t8tUte was designed to prevent. 

It Is olsar that under the faot4 pra46nttd by 

fou the pereon desiring to inapeot the ledge% sheet8 doe8 

not purport to be a etoakholder cmnisg On4 per oant (1%) 

OX more of the oatetaudlng 4took Of aa~ oOrpOratiOnr 

Eeith8r do the tact8 8hoW that said applioant ooiuee within any or ths other 4p40iri.0 0x08 tlonr or the privilega 

rule 4nnounc4d in said Artiole 70 fi 9, 4upra. 

xt r&low, froia what wa hare 8ald, that lour 

qu88ti0II mU8t b8 4pQOif10a11y ansrerrd in th8 48$atfT8. 
,zdiiLd 

579