The Savannah morning news. (Savannah, Ga.) 1900-current, 1903-09-21
TWO WAR TAX CASES
WILL COME BEFORE U. S. CIRCUIT
COURT NEXT MONTH.
SOUTHERN BANK CASE IS ONE.
COLLECTED ON "DUE BILLS" AS
THOUGH REGULAR NOTES.

COca-COIa Case Again Before Court.
100000 Is InVOlved-The FirsI
Trial Won by COca-COIa Company,
but Government AppeaIed-The
Case Also OutgrOwth of Spanish
War TaX-The Savannah Druggists
Chary About Expressing Opinion
on subject-The Retail Price of
Drink Not Effected.
Two cases of interest to business men
of Savannah and to the public as well
are to come before the United States
Circuit Court of Appeals in Atlanta
Oct. 5. They are the appeals of the
government against the Coca-Cola
Company from a former decision, and
the appeal of the Southern Bank of
the State of Georgia. The presiding
judges at the sessions of the court will
be Judges Pardee, Mccormack and
Shelby.
The case in which the Southern Bank
of the State of Georgia is concerned
is the outgrowth of the revenue tax
imposed during the Spanish war. The
history of the case is about as follows:
During the Spanish American War
the Southern Bank loaned consider
able amount of money on the due bill'
plan. The internal revenue collectors
collected money on these due bills pre-
cisely the same as if they had been
notes and the aggregate of the tax
reached a considerable sum. The bank
paid the tax under protest and later
sued the government for the amount
it had paid out. The case was tried,
and a decision rendered in favor of the
government.
The attorneys for the bank at once
appealed, and the second hearing OF the
case will now be taken up. The result
is awaited with interest in various
parts of the country, as it is under
stood that other banks have paid out
greater or less amounts in the same
manner and if the Southern Bank WINS
thew will sue the government for re-
covery of their money.
The COca-COIa Case Appeal.
The case of the United States against
the Coca-Cola Company, is another
outgrowth of the Spanish war revenue
tax and one which attracted attention
throughout the country when 1t was
first heard, owing to the widespread
use of the famous soda water fountain
drink. The first case was decided In
favor of the Coca-Cola Company and
the appeal was made by the govern
ment. The case involves q sum of
money aggregating more than $3O,OOO.
One of the taxable articles during
the Spanish American War were GER
tain drugs, more or less common, used
in certain soda fountain drinks and
in several medicines. The tax was
imposed whenever there was GER
tain amount of the drugs in any given
compound. The revenue collectors col
lected the tax from the Coca-Cola Com
pany, claiming that the drugs were
used in making the drink and that
there was a sufficient amount of them
present to make the drink taxable.
The company at once sued, claiming
that there were no grounds for i'm
posing tax. The case was thoroughly
aired and much expert testimony In
trOduced on both sides. and finally
decision handed down in favor of the
Cola company. The government at
once appealed and the entire matter
will be reopened on Oct. 5.
Druggists Express No Opinion.
Several Savannah druggists who
have soda fountains in connection were
asked yesterday by a representative of
the Morning News if in their opinion
the drink did contain the drugs in suf-
fcient quantity to warrant the impo-
sition and collection of the tax A gem
eral reticence was found among those
consulted regarding the case, none car
ing to take any decided position on the
matter.
Just what the drink contains" said
one pharmacist, mo one can tell but
the company unless an analysis of the
drink is made by a chemist l have
not done so and do not know of any
who have, so that all 1 have to go by
is the evidence introduced at the first
trial of the case. This seemed to favor
the claim of the company
Persons who like the drink, and they
are legion, make statements about it
to me which seem to Indicate that
there are certain drugs used in the
drink, but whether they are the ones
taxable is another question. Then
too, the amount concerned must come
into question and on this point 1
strongly doubt if the government can
win, judging from the evidence intro
duced at the last trial. The evidence
brought out next month should finally
determine the question"
Will Not Affect Retail Prices.
Should the government be sustain
ed in it's appeal and the decision of
the lower court be reversed, it is I'M
likely that there will be any difference
in the price of the drink at soda
fountains. Such was the opinion of all
who were asked about the matter yes
terday. Though the amount involved
is 100000 yet the tax has now been
lifted and it is not probable that the
Coca-Cola Company will endeavor to
make up its loss by raising the price
of its wares
Coca-cola has attained wide popu-
larity and soda-fountain proprietors
state that it has one of the widest
sales of any of the popular summer
drinks. In the bottled form it is found
at almost all of the fruit stands and
candy stores and there is scarcely any
of the soda-fountains in the city where
it is not on sale. The outcome of the
case will be watched with considerable
interest by the lovers of the drink.
A Fact Worth Knowing