The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-01-16

THEY FLY To THE
FEDERAL COURTS
Western Union Telegraph
Co. VS.. B. R. Lacy.
THAT 25C PER MILE
Treasurer Lacy and Corporation Com
missioners Summoned to Charles
ton Before Judge Simonton
on Order Restraining
Collection of Tax.

The Western Union Telegraph Company
is in the Federal Courts, kicking against
paying the privilege tax levied by the
Legislature of 1903. They are trying to
get an injunction issued by Judge Simon
ton to keep Treasurer Lacy from collect
ing the tax, which is long overdue, and
which Mr.. Lacy notified them in a final
peremptory notice the other day must be
paid by noon today, or he would place the
matter in the hands of the Attorney Gen
eral, to be collected by law, and collect
the $1,000 penalty prescribed by law be-
sides.
Yesterday came the subpoena or notice
of suit began in Judge PurnelPs court, ac-
companied by a temporary restraining or
der, to prevent Treasurer Lacy from col
lecting the tax before the trial of the case
before Judge Simonton in Charleston on
January goth. This order was issued on
Thursday by Judge Simonton.
The subpoena was issued yesterday by
Major H. L. Grant, Clerk of the United
States District Court here, presided over
by Judge Thos. r. Purnell, against B. r
Lacy, Treasurer of North Carolina, and
Franklin Mcneil, Samuel L. Rogers, and
z. C. Beddingfleld, members of the North
Carolina Corporation Commission, for the
purpose of testing the liability of the
Western Union Telegraph Company to pay
the privilege or license tax imposed under
section 80 of the Revenue Act of 1908
The subpoena is returnable before the
lid Of he mi Tod of
on the first Monday in February, 1904.
And on Thursday, the 14th, temper
airy restraining order was granted by
Judge Charles H. Simonton, Judge of the
United States Circuit Court. returnable
before him in Charleston, S. c., on Jan
uary 29th. 1904. The purpose of this re
straining order is to prevent the collection
# the tax levied until the final hearing
OF the cause. The complainant was re-
quired to give bond of $500.
So Treasurer Lacy and the Corporation
Commissioners will have to journey to
Charleston and show cause why they
should not be restrained from collecting
the tax. Attorney General Gilmer will
of course conduct the case for the State
The bill of complaint is quite an ex-
haustive printed document, signed by F.
H. Busbee & Son; Brown G Wells, and
George H. Fearons, as attorneys for the
Western Union Telegraph Company.
Section so of the Revenue Act, which
has caused this tremendous kick, reads
as follows regarding telegraph COM
panies: There shall be paid by every
express company, telegraph and telephone
company doing business in the State an
annual license tax as follows by
every telegraph company, an amount equal
to twenty-five cents on each mile of wire
such company operates within the State
The Western Union operates 1865
miles of wire in North Carolina Accord
ingly the tax amounts to s4,377. This is
of course exclusive of the regular property
tax paid by the company on the assess
ment fixed by the Corporation Commits
sion upon the excess over the local valua-
ton in the counties. This tax, amounting
to 81, 391.32, has already been paid
Treasurer Lacy said yesterday that he
had commenced last October to take active
steps trying to collect the license tax
Some correspondence passed between him
and the Western Union people. and he
has letter from them saying that they
did not think it would be necessary for
him to resort to legal assistance to col
lect the tax, and intimating that it would