### OFFICEOFTHEATTORNEY GENERALOF TEXAE AUSTIN -c.yu(r( --R&L

i,.f?onorakle George !i.Sheppard, Page 2

13CO outstanding 5haraS, ormad IA part qs followa:

A own8 103 Shar48; A’8 Wire OWA5 508 8h5m5; C OWAS 104 shame.
The mmatAin(5 shares iA *00rp0rat10nI” are dltldad WOW a large xslmbtr

o? other persona,

### none ot raid other pdreona OWAiA& DOM than a iat?Shal’ss eaoh. Aooording to the informationyou hare given U5, the parties in a616 wpartnsrahlpx” hare a vote and volo4 ~;t~~;;oAtral at the partnamhip In proportlou to their



### We praauma that auoh la the oaae 

### by virtue of a partd8hip agreement.

Tcu state that A aad 0 l ra the aau?e

~+aona iA both 

### *partnarrhlp

x" and woorporatlon

### I.*

IA d4temiAinp; whether the l t’cres operated by *partnershipr” and those opmsbed by ~oorporatlonT” oonatitUt6 OA4 eh8IA or two aaparato ohalna, we

### must dooidr whether or not en of said atore~s am *ultlmatelJr

oontrolled or dlreotrd by on0 mana omant o* aaaoolatlonof ultlma gmeAt+* S~OtfOtiO~f the %X85 Ch4iA St0la Txf zi*“’ ouao ill To. 18, Aots 1935, 44th legislature, 1st Called SeSSIon, and whioh 18 codified a% Art1018 lllld in Vemon~a AAAOtOtsd p4Ali oOd4 Of %Xf~6) p1pOlidU58 rOiiOW5t

"300. 6. The provisions of this Aot shall b4 GOA5tZW5dt0 apply t0 every perSOIl, WeAt, reocivez, trust.ee, fim, oorporation, oopartnership or assooistlon, either dcne6tlO or r0raigh whloh is controlled or held rith othersby mejority 6tcok oWA4rShip or ultkFatslyOOAtrOli4d or 

### directedby one menmg5E4At or 5SSOOiStiOA oi Ult&ate managearnt."
980. 7. The term *atore*es used ic thla Aot shallbe oonstruacl to eQan 

### and inolude any store or stores or any msraeatile estsblfskent or esteblie!mentsnot apeoiliaallfexemptedwithiA t,bfS

Act wh$Ch 4XC OWAdd, OpSl=Sted,!CainteiAeQ, or COAtrOll5d by the saae p6lpOOA, agUAt, r*- aalrer, trustbe,rinn, OO~pOl'EitiOA, oopartaerahlpHonorable George If.Sheppard, *asa 3

or aesoolation, either domeatio or toreIgn, in which goods,wares, or merohendlae of any kind are mold, at retell or wholeaale.m

IA the oaae ofR. E. Butt Orooory Co., v. Sheppard, 157 S. W. (&I) 825 (writ of error 

### rotund) the Court oi Civil Appe6la at Austin, held th6t 

### by tlrtu6 of 

### meld 8eOtiO66 6 and 7 ii one person ownad 

### a majority oi the atook in two or more oorporationmall of the 6toror 0pemea by 551A oorporatlona oonstitutedOAO ohalar end the court 

### maid:

*Sea. 6 was mmlfeatly lnt*ndadto prevent 

### large ohslnm of stores, whloh noelve the benefit6 flowing tFOa auoh 

### syatm (OoMiderOd red enumerated ln 

### pertby tha$J. S. 

### SUQNWJ aourt in State Board of Tax 

### Com!.ra. f. 

### Jaekmon,805 U. 5. 527, 51 S. at. 540, 75 I.. Edi 1248, 7% A. L. R, 1454 75 A. L. R. 1556, ana in Hurt v. cooper, 130 +ex. 453, 110 S. ki,(Rd) 696 auatalnlng the ralidlty o? the Act 

### aa oolutjtutlng 

### a ra6aanable olaaaltloatlon),rrOm olroumentfng the tax burden6 lmpo6s4 u~dor the &It, 

### by organieing aepanto corporatioaa to operate them, the oapltal stook of whloh, or a majority Oi it, b6- lng ownedby e.parfnt oorporetion or holding oompany, or by aa lndl*l6uelor l a6oclatlon o? indlriduala. Thus through a oommon

### management or 00Ai~ld over a number Of indiridualUnit6 Of oorporatlona $h! a;lear purpose of the law wo~3.A be Ae?eateA.
** * * The ownership

### by Butt oi W% of,the stook in 0118oorporetion, 6Ad of 75% Or the etook in the other, grva him auoh u~liied OOAtrOl of both oorpor5tion5, through such atook 

### ovmsrnhlp, as to bring the atarea OuAed 5Ad 

### oontrolledby 6uOh separate oorporationeunder theprovisionm 0r the Bcti end required thatt9e]r gt treated as one chain for tar purpOOOB+
In this 0551)

you hare asked about, no 0110 person owne emajority of the stock or lntereat in both the partnership aAd the OOrporatloA, or even in one of the& A, 0's wife, and C, together, own a majority of the atwk in 

### *oarporatlonY-i and A aad C, together, own a majorfty of the

### 717

lnter68t in *partn*r*hip

### X*.

In Attorney Uenaml*~ OpiniOa Be. 0400, 

### dated Yarah 10, 1939, we mede a holding in lmguye 

### a8 folla81

"It in our belief **that** tbo phn8o '*hioh 18 l * ' ooatfollmd l * * by OIU mnag8men~ or a88oOi8tiOBof tith8t8 **DwMgem8Bt ’**  in Ek6tiOB 6, 8nd the phrase 

### *storm * l * oontrollodby the 88nie

oopartnerebipor **aaaooiatlon~** la S~Otion I, doe8 not ncwn that tbm eontool or man**agsment** rust be In on8 indivlQualpweon, **but it**  **mean8 what**  It 

### 8aya. **and**

### that **la** 

### the *tom* 81%in thr ewe ohaia if 

### tbo oontrol**and** 

### man

### 8gemnt

18 in ,th6 ammo l rrooiatia or OOQU%BOTship. 

### Ey the 

### SIQU**a8soaiatioa** 

### or oopwtaermhfp a6 

### usedthere 18 waat the *am group of peopXo. 

## *rr a grouQof 

## threrIUB, or aay othar am

### ber, couldrent?dn or 

### govwn, or had 

### l uthoritf over 88~8~~1 8toxw, having authorit? @vet MU **of the**  rterea **by ~1x4~8**  **of own@&**  **a** 

### majority**of** 

### the ateok or therorpor&loa that b&d tbbrtltlo to those 

### l

tore8, and batiry author&W over thm othot 

### atom&by **rirtao of**  **boily;**mrJorlty HOPI of the part&r&i that 

### onnod thea, 

### than there rtorea would all & in the ume ohaia jaot thr mamaa8 

### ii oae lndirldadl person 

### eontmlled CL1 

### or the 

### l ta~a.í 4-, .~

we8till 8dlmw ta that oplaloa. R8 bellw8 itii8 

### lxpporbed by the reornt oa80 or **Florida** Iaduatrfal 

### Ck?mmi88loa **v.** Gary-Lookhart Drum Capany, Ino,, (Sup,CL o? yla,) 196 80. 868, in nhiah it wa8 helQ 

### thetfopr 

### 8eparate 

### aerporations rhould be considered

### a8 on8 aploymnt onit for tax 

### purpose8 under the Florida Un8mpleym8nt Caapan*ation Law by virtue 4f the f8at that the 8am mwup oi pornon owned a majority of the atoak 

### in 

### l aoh ot the 8orporatioB8,altbowh no d.ngle

### per8on**owned** a majority OS the 

### *tookIn any of maid oorperatlon6. In th8t oa8e the oourt 8aidz

“The ownershfp of stook ln the faur 8orp~~&wna, ata4i801088d **by** the m,oord, ir a8

: a*Ferry CorporatlanII4onorable Oeorge H. Sheppard,Page 5

**Egtate Of G. i?.til@y 69 *ban* *'-f". 6. Loakhut **Claude %. Oary r :2ft ** Celia J. &ry 1 share "(oaoh **sham** of o~ual value) Vol8y Corpor8tioat Wary Estate 'SC) ShnS 

### WP. 0. Loekhart S?,ShaZ'W *(1.0. 8Wl2@~8 8% 8har.S 

### “Celia J. Wry 1 Sh4l'a 

### *(*aohahan of ocwl r8luo) 

### mPotiat.

### JoeCarporatIon! rOella J. Oaa S ShW'OS
=p": 0" %hat 86 *barra
V3wnice 

### Lookhart "I :2r

**“ thiSsUed**  ssShW'@O 

### *(oaoh sham ef Mual t3k10) .a?:: “LeeebusgCorporatlont 1., ,;, _~_ *K. il.: Taylor 8s 8h-E "I'. 0. Lsokhart 88 Shalul# -2. w. oary 84 *ban* “(eaoh ShlW 0r apu8l raluo)' 

### -No one or tha four oorpratlaa8 atpleya am many ameight people, 

### but wmulsfi~ 

### the iour **am** a rir~glo

a@lO~nt unit, 

### sightproph or more me 

### employed.

"It is a&altted 

### on tha r8bco1-4 #at 8 em@* Sty of the 8took in woh ot the four oorpen

### tlona &I **aaed** by a ocmmen iatrnat 

# unit, **fs-wit,** ?'.0. **Lookhrfi** Slidth0 ckry 21 St&. 'f'b8 **6t8tUb, SUPM,**  **prOrid@ thrti**  **- h&b&O**  **fi g**  **WBit,** togather with 

### one or 

### ram auplOybg 

### UB t8,WhOa Omd Or controllo dinotly or lndixvo%lr br 

### the nm lntere8t8,or rhioh ownmCTr oontm~s OM 

### OrIore other eiripla in(c uttltr~, aud

### rhiah, if trmatmd **am** 

### a mingle unI

### t with oth8r m@loyin@ 

## unitao+r*lntere6t8, 

### er bath wouldbe an 8W?lplbMT. 

### the OOneluSioBx~

i8 

### inorltable that hh# LOUHononble George8. Sheppard, Page 6

OOTpOrt3tlOnS

are 411emsploymnt unit bOOeU88 they are OaCh !ukIeI! the COntXWl 8kIdownership Of the Sama inter~8fSh to-rittf'.0. 

### halchart and Gary Estate. w
fn this oaao A and c together hav8 th8 oontml of *paktnerahlp'X"by virtue af toðer owning 64.14# et th8 intBre8t in raid

### pastnerahip. A8 **StSt8d** ab0r8, in this partner8hip 

### eaohpartner ham 8 vote and voloe In the mana&bment Of the parbnershlp 

### InprOpWt:OB to hi8 :ntO#at.

EOwever, u00rpor6tiorI F is not ooatrolled aby the 8ame oopartuarahip or 

### l 88o01at1on,* to-wit, 

### A and C unl888 

### the StO@k~rm8d by A'S **Wfh 18**  

### doemrdIn law to br tinder the control 

### of A. **Aand** 

### Ctoðer own Eo9 sharer 

### of rteok in said corperatlon but there are 1300 **outatand** iE& ahWe& A'8 tit8 **OWtMJ 868**  **BUT88** of StOOk **in 8aid**  oorporetlaa, **and** it A io 

### deemed in law 

### amoontrolllug th8 **8taok** Owaod 

### by hi8 M.fS, thou A and C oontrol a to$al 

### Of 116 

### l bare8, and

### would thrraby 

### togothercm a 

### majorityoi **the rtook**  **and would**  **oontlal Miti**  aorparat~io& **79~8** answer to thl8 queatlon d8pWIde on rhother the etoek owfM6 **by A** **’ s**  **rite is**  ths oo88!unity**property of**  **her an4**  hei hprbnnd or ir bar **parate property.

'Ths St8tW.8 (Artloh 4619, 17.0. 8.1, 

### l xo*pt 

### tar 

### a short tinre-* from 1913 to 1985 -- has always VeatSd th8 Tight Of QOntKBl **and** diSpOS:t:OB Of th8 OOEIIUBit~ pTOp8rty in 

### thehueband." OJ 5%. Jur. 109, =~StSlOT **18** CORWllitf property 18 

### under the eontro1,miI&gelaent and di8QO8ttiOE Of the 

### hUebardiLOBS, whether it b8 the earnings Of both jointly, the earnings of the ~huabaudalone, or the,oaTuln68 of 

### the wit8 alone." BSTax.Jur. 108. The two foregoing SentSMSS am baaed On Art:018 4619 Of %2tlOtl'S knnOtat@d ROVi88d Glrll &8tUtSS Of 'feXa8, of which %3OtiOu 1 8aySt "$80. 1: All property 8oquind by either the **humbend**

**or rite**  **duriiq m8rrie$8,**  **OXOept**

### that whloh la the **separate** pmperty Of either, shall b8 deumd the omnOn property of the husband and wife; and all the etteotawhlah 

### th8 husband and Wit8 

### PQSSeSSSt the time the lBWTiw8 lyIy be 

### dl88OlVOd shallbe ZWgWdOd am oC~BEOB OffOOt or gains, unless the contrary be 8atisf8OtoTily proved) Outing aoverture the common prOpSr0y of the husband and nits my Abedi8pO8ed a? by

## 720

Honorable Dsorne E-r.shespaI-4, P4fce 

### 9

the hurbnnb only; 

### pe~lded, haer~r,.if the **huabaad**ahall hate dlrappeand and hi8 whereaboutr &ml1 hare beon 444 r4m4in uaknom to the tire oontinuouely

### rormore than twelra mOnth8, thewife ah&l1 4ftet auoh tweliemonth porlo4 an4 until the hueband returns to her and the 

### l

ftld~rit hereinafter proddo& ror in 

### made atut

file4 ror **rc8ord.** hare lull oontrol, SWUgOMnt UNI **ui8pOBitiQn Oi**  **th0 CCSBFQtULity**  property, 4114 ehall hate the same power.with refsrenae thereto le me oanfe2~e4 **by** law **upon** the hwbund, 4nU $ez =,Ots ehall be 44 thou. 0r 4 femme sole.

In the 0464 0r Coleman v. ~0h4n, m 6. w. 695, hit 0r wmf 

### nfuse4) the cmlrt 0r Clrll ApFeal* et 8ml Antonio

"+ * * The nor48 aommuuitypropertywith ~8 4re rueh 88 r&de to 

### propertyowxwd in ammoa between the husband em4wife, a kind of marital pwtaerrhlp, an4 by our rtatutes defined in 4rti01e 4619, R. S. the Qf auoh property, both under oft11 law an4 our atatuter aerteinlnnntherewhere th-ere

ire no restrictions. Thewit*. l-8 to hat8 had only the right or partAt$$netpon the tenalnation 0r the marital rights. (%ndcrsooringour01
See elm the oa8e or **Stow** v. Jaokwn, 109 Tex. 58S, E3.0s. W. 953, an4 the text %nw or K4rital Rightr In Tens, 

### Jr4 Ed.”by 6poer,jmgs 193.

On the other ban4 tha Constitution of Texan (Artitle XVI, S~eotlon 15) provides that 4 mrried wm4n oan own IO arate property, an4 the rtotute (Article 4614, R. c. 6.'3 give8 the control of the wffe's regarate property 

### l xolueivcly to the rite. Artlde 4614 Or ~0~3IQn’8 AnnQtata4 Revised Clvll Statutesof Taxer,,s4g4,t

-'All property or~thc wife, both real en4 personal, owned or olallced by her before Ifarrlmge,.~. :>i*

_ 

## 721

Rmorable 

### GeorgeR. Sheppard, Fag* 8

**and** that aoquirrd sfterrrard by gitt, devise, or **desoent, a6**  slso the lnoreass of all lands thus aoquirsd, ehall be the separateproperty oS the wire. The wire shallhare the sole &anagement, control, an4 disQ~sltiQn of her separateproperty, both real and personslt grQrl4e4,howover, the 

### joinder of the 

### husband ln the **manner** 

### naw provided by law for aonveysnae8 OS the 6epsmts rwl estate of thewire mill be neoessary to the 15ou&%brsnO6



### or aonveyanoeby ths 

### wife of her lsds, and the 

### joint rignature of the husban4 and wit* shell 

### be neoesw to 4 transfer of stocks an4 **bon48** beloaglng to her or Qt which shemay 

### be glvon oontrolby tbls.~law.”
In the o48eof Levln v. Jetrers, leg Tex. 83, 8% 6. W:.(84) 81, the sUpx39@0

CCrUrt Qi %x48 saidt


### ** + * Thegre4ntlng to the 

### tire oS the sole oontrol an4 

### managementot her separsto prQpOrty by n800884ry iE@liaatiQn ClOti hot, in themaking or aontracts in respeot thereto, with all suah lnoldentsl **power**48 will render effeatual the parer expressly grsnted. It must be rememberedthat a **marrled** runan owns 5~ 

### her own right her 6eparsteproperty. E%en as swh

In a discussionof the right of 

### a married wo~~snto own 

### an4 control separateproperty in 23 %x. Jur. 88, It *St

"* * * she may own stock In a raIlma or any other private oorporetion,en4 she may a~- qulre the e&le in any OS the way6 usual, a6 by gurohaee, gift, devise or desoent. 2hs nay In 

### the samemanner becor?le the owner of benk stook, and a6 such 16 subjeot to all statutory regulations an0 assessments. InBee&, 

### Ourstatutes expresslydeolan, that chsrters sag **be** subacrfbed by marri*G women who nzieg be stoakholders,, officers and elrsotorv In private corporations.

## 722

Honorable George HI.Sheppard, P4ge 9

Our statutes of oonrey~os by ths wire or atooks an4 bonds owned by **her nsoem~arily**  **re** cognize her right of lndlvi4ual ownershlp.~ Whether the stock owned by **A ’** **s** wife is oommunlty property or her 8epuets 

### property Is 4 f4ot question on wbioh you have not given u6 sny inrormation. fr this 

### stook Is oomuuslty property lt Is rubjeot to A’s oontrel, and 

### ln such bass A and 0 together oontrol both apartnsrship P an4 Woorporatlon P. In other word8 *partnership F snd *oarporation 

### Y”are ~oontrolla4 by 

### the same oopartnership or 4ssooiatioa.” 

### %wevcr, if the *tookowned by A’s 

### wife 18 her sepsrate property she 

### oontrols it, and A 4nd C 40 not oontrol Woorporation Y.”

It Is appsrent by the 

### rorsgtolng dlsousslon that we oannot answer **your** questloss a4tegorlaally. we 04n odlf say that **lr** the stook la %orporstfon P ownti by A’s wife Is the oammfty property or her 4nb her husband then the two Qrganlzatlons are *oontrollsd **by** the ssme aopartnersblp or easooiatlon,* to-wit, A and 0, **an4** all of the stores operated by the two orgenizatlcdxv constitute one ohain; but, if the stook Is the sepawte pro erty of **Atit Wit0**  then tba two organlzatlons are not contra sled by the seme oopartnership or association, and the 8tons QpsNted by the two argaulsetlons oonetitute separate ohalns.

Yours very truly 

### ATIQRXEYQJhtAL OF TEXAS

BY &-@k Ceoil .C. Hotsoh

AsSistant