The sea coast echo. [volume] (Bay Saint Louis, Miss.) 1892-current, 1903-04-25
REVENUE AGENT ADAMS
GETS A SEVERE BLOW.
Supreme Court Dives Decision In Fa-
vor Of Foreign Loan and Mortgage
Companies.

The first defeat OF large. sized
proportions that has been admi-
nistered to State Revenue Agent
Adams during his term of Office
was dealt by the Supreme court
last evening in the litigation
against the foreign mortgage and
loan corporations.
Two cases were before the court
for consideration, both being sub
mitted ON an agreed state of facts
and in both Instances the lower
courts had decided against the re-
venue agent. One suit was against
the Colonial and United States
Mortgage Company, Limited, from
thc circuit court Of Coahoma
county, and the other against the
same corporation from the chan
Gerry court of Copiah county.
In these cases the revenue agent
sought to collect tsxes from the
domestic or localized, and were
under the heading Of solvent ere
dts, that the company paid no
taxes on these loans at their home
office or main place of domiciIe,
IN this State where their agents
we're negotiating loans or transact
ing business.
Tho Copiah county case differ
cd somewhat from that IN Goa
homa county, the contention in
chancery being that the mortga-
gee held an interest in the prop
erty mortgaged, prior to foreclo-
sure, and as a holder of such in
terest was liable to taxation.
Each and every contention set
up by the revenue agent was
knocked out in the able and leng-
thy opinion read by Chief Justice
Whitfield. The decision will rank
among the most notable ever
handed down by the Mississippi
Supreme court, not only on ac-
count of the excellence of its pre-
paration by the learned chief JUS
tice. but by reason of the vast
property interests involved.
IL was held in the opinion that,
although the loans of the compa-
ny were made in Mississippi, on
Mississippi property, and through
duly authorized agents doing bu-
siness in the State, that the COM
pany has no domicile, or place of
business, in this State, and is
therefore not liable for taxes.
The Mississippi statute on this
subject Is in conflict with deci-
sion of the United States Supreme
court decision bearing on the same
point, and tho Chief Justice held
that the remedy for this is in the
hands of the Legislature, the
court being able only to interpret
and provide for the enforcement
of the law as it IS written. He
also decided with pointed adver-
seness against the contention in
the Copiah county case that a
mortgage has as intercsest in the
mortgaged property before fore
closing.
Although the amount involved
IN these two cases was only q few
thousand dollars, a decision oppo-
site to that rendered would have
meant the commencement Of liti-
CATION by the revenue agent in
volying back taxes estimated at
one and one-half million dollars.
In its Importance, if not in public
interest and ultimate effect, the
case is equal to that Of the cele-
brated back tax litigation against
the railroads.
Chief Justice Whitfield IL be-
ing warmly complimented by the
members of the bar on the excel
lence of the written opinion in the
case. While quite lengthy, it will
be quoted IN the legal reports in
full.-Jackson Clarion-Ledger.