Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-03-23
EXEMPT FROM TAXES
Assistant corporatio1f Counsel Passes
= .sOn $50
Upon Appeal From the Per-
sonal Tax Appraisers.


ton counsel. has submitted to the Commits
sioners an opinion based on the appeal Of
the Virginia Brick Company from the as
sessment levied against 1t by the board OF
personal tax appraisers. Mt. OConnor up
holds the contention OF the company that 1t
is exempt from taxation
1t appears that in November. 1902. the
board Of personal tax appraisers rejected
the sworn return Of assessable personal
property made. by the Virginia Brick Com
pany. and levied an assessment In the sum
Of $4,000. The assessment levied was
based uopn paragraph 8 Of section 6 ofsthe
act Of July l. 1902. The paragraph referred
to authorized the board to appraise In bulk
at its fair cash value the capital stock OF
all corporations organized In any OF the
of and transacting business In the District
Of Columbia. and requires such corporations
to pay to the collector of taxes sum equal
to ~ per cent Of such assessed valuation.
The question Is. says the counsel.
whether the Virginia. Brick Company Is
such foreign corporation as Is described
by the terms of paragraph 8. II appears
that the corporation Is incorporated under
the laws Of the state of Virginia and has
it's plant for the manufacture of bricks
located in that state, have examined a
copy of the charter Of the company and 90
not find anything in the articles OF incor-
poration that would Justify the conclusion
that this company was organized chiefly for
the purpose Of transacting business within
the District OF Columbia. 1t appears, how
ever. that its plant for manufacturing pur-
poses is located in Alexandria county. I'M
mediately across the Potomac river from
the District Of Columbia and the city OF
Washington. and 1t Is stated to be fact
that 1t Is dependent upon the sale of brick
in the District for the success OF Its opera
lions.
Right Clearly Apparent.
''That this company has the right to sell
Its manufactured products in the District.
the same as any other foreign corporation.
without being taxed under paragraph 8. IL
too clear for argument, but because, as
shown by the memorandum furnished the
corporation counsel from the office Of the
board Of personal tax appraisers, the great
er part Of the products Of this company Is
sold in the District of Columbia, 1t is con-
cluded that 1t was organized chiefly for the
purpose Of transacting business within
the District of Columbia On the other
hand, one Of the purposes, If not the chief
articles of incorporation. is to manufacture
brick, and this business is transacted wholly
within the state Of Virginia.
IF this business of manufacturing brick
is not regarded as the chief purpose OF the
corporation, and the sale of the manufac-
tured products In thu. District of Columbia
is regarded as it's principal purpose. then it
follows that this CORPORATION should be
classed as a merca ptile corporation. and ex-
empt from the operation of paragraph 4.
under the terms of which it is proposed to
assess the capital st, stock Of the company.
Question Of Fact.
whether a corporation is organized
chiefly for the purpose Of transacting bust
ness in the District Of Columbia is a ques-
ton Of fact. and While the place of the dis
posal Of the Manufactured products is a
fact which might be considered in deter
mining the ultimate fact of what its chief
purpose of organizationas. 1t cannot be held
as a matter of law because the District OF
Columbia furnishes the principal market
for it's manufactured products. that it is
subject to the imposition of the tax pro-
vided for in paragraph g., nor could it be
held as matter. of fact. that this thing
alone would determine the question without
at the same time holding that 1t was mer-
camille corporation
my opinion is, therefore. that unless
there is further evidence that this company
was organized chiefly for the parpose OF
transa citing business in the District Of Co
lumbia it would not be subject as such to
taxation"
The opinion has been approved by the
Commissioners.