Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1893-10-26
PERsEHERE ED ANn ZION.
A Victory for the Harlan s. Hollings-
worth Company in Tax Suit.

worth Company in a Tax Suit.
A special from New York announces a
victory for the Harlan Il Hollingsworth
Company. For many years the company
has had an office in the Boreel Building,
No. ll5 Broadway, New York city. From
the first the comptroller of the State of
New York has claimed that the fact that
the company obtained many of its con-
tracts and maintained an Office in that
State made it taxable there. At first the
tax was only nominal and the company
paid it rather than incur the expense of a
long and tedious litigation, though it was
advised by its attorneys, Stapler, Smith q
Tomlinson, that the tax was illegal.
About three years ago the tax was in
creased without any apparent reason and
the company, becoming alarmed, resolved
to test the legality of the tax in the courts.
The question had never been raised in that
State and there was no reported decision
bearing on the subject, though there were
hundreds of corporations similarly stu
ated and having offices in the city of New
York. The company protested to the
comptroller and asked for hearing, which
was granted and which resulted adversely
to it. 1t then asked for a rehearing, which
was granted and which likewise resulted
adversely. 1t then sued out writ of
certiorari and appealed to the general term
of the supreme court sitting at Albany. The
Encouragement appeared for the comp
troller and the result was that the supreme
court unanimously sustained the tax. Not
discouraged, the company then appealed to
the court of appeals, which is the court of
last resort in that State. The matter was
argued before that tribunal last June and
this month decision, embodied in an ex-
haustive opinion in which the entire court
concurred, was handed down reversing
the determination of the comptroller add
of the court below. and declaring the tax
illegal, thus bringing ALLEGATION extending
and making it possible for the company to
maintain its office in that State without
being taxed in two States on the same
capital.
A special from Albany says: An inter.
| estlng case just decided by the court of
appeals is that OF the People ex rel. the
Harlan & Hollingsworlh Company, appel
troller, &c. The appeal was from the
| order of the general term, third depart
ment, confirming the proceedings of the
| comptroller in imposing tax on the as
sessed valuation of the capital stock of the
plaintiff company, u Delaware corpora
ton, at $4,000. The company contended
that all Of its officers and stockholders are
bona-tide residents OF Delaware; that It's
| office and business are located and trans
acted in that State, and that it Is in no
manner amenable to the tax laws of New
York. The comptroller held that the COM
pany had an office and business for re.
pairs, Sc.. of steamships, railway cars,
&C., in New York city, where il
kept personal property and maintained
and paid salary roll OF 80 800 per annun.
| The court of appeals decided for the com
pany, reversing the order of the general
term, and that of the comptroller in I'M
posing the tax.
Mr.. Stapler, senior member of the firm
which conducted the fight to successful
issue, was formerly resident of Whining
ton, and Mr.. Tomlinson. one of the junior
members formerly resided at Georgetown,
To avoid paying this illegal tax several
Wilmington companies, it is said, removed
their branch offices from New York tc
Jersey City. tg