The herald and news. [volume] (Newberry S.C.) 1903-1937, 1907-03-12
CORPORATION TAX +.
NOW QUESTIONED
DECISION BY COURT AFFECTS
-, FOREIGN COMPANIES.
Have no Right to Collect Mortgage
Concern Wins It's Point and Other
Sections of Law May Come
UP Later. =.
The State, 9th.

The State, 9th.
A decision of the supreme court
given yesterday in the case of the
British-American Mortgage company
against the comptroller general prac-
tically kills the clause in the corporal
tion license tax which allows the
state to collect one-half Of one mill
on the value of property in this state.
The case came up last summer when
the comptroller general issued instruc-
tions for the collection of the license.
The company held that under the act
Of 1893 foreign corporation was ad-
mitted to this state to do business
under certain conditions which were
violated by act of 1904. This view is
sustained III the opinion given, which
is in part, as follows:
"This was an application to the
court IN the exercise of it's original
jurisdiction for an order of iniunc-
ton restraining the comptroller gen
eral from enforcing the provisions of
the act to require the payment of an
nual license fees for doing business
in this state and reports to the comp
troller general.
"On the 28th of November, 1904,
the company plaintiff filed a declar-
alton with the secretary of state in
compliance with the act Of 1893 and
stated its manner of doing business
in this state. It was claimed by the
attorney for the company that the
business was not done in this state,
but in New York, since the applica-
ton for loan is forwarded to New
York, and there passed on and ac-
cepted by the company, being return
ed TO the agent in this state, who exc
cutes the papers and forwards them
to New York with draft. The su-
preme court does not sustain this
point and holds that the company was
doing business in this state under the
terms Of section 1887 of the code, and
besides it is held that even if this
statute had not been enacted, the ex-
ercise of by the petitioner of the cor
porate functions hereinbefore men,
toned would have constituted the do
ing business in this state.'
The court then says:
"The next question to be determin-
ed is whether the act of 1904 is a vio-
lation of the contract permitting the
petitioner to do business in this state.
When this permission was granted
the act Of 1892 was of force, which
provided that foreign land loan as
sociatiOns not incorporated under the
laws of this state to pay should pay
a license fee of $100. This was done
by this company. The act Of 1892
was also of effect when this company
was licensed and contained the pro-
vision that foreign corporations in
any state or foreign country are per-
mitted to carry on business in South
Carolina in like manner as the natur-
al born citizens of the United States
or any foreign country, subject ncv-
crtheless to the terms and conditions
hereafter set forth in this same act.
This provision became section 1879 of
the code, which was amended by the
act of 1904, which imposed license
fee Of one-half Of one mill on the cap
tai stock of domestic corporations and
the same license fee on the total value
of the property within this state Of
foreign corporations doing business in
this state.'
Justice Gary quotes a decision of
the Colorado supreme court in the
case of Am. S. and R. Co. vs.. Colora-
do, in which it was held that tho
fight to do business in a state with
out being subject to any greater lia-
bilities than those imposed on domes-
tic corporations was acquired by a
foreign corporation upon it's admis-
sion to the state Of Colorado under
the laws then in force, which sub
jected foreign corporations to the du-
ties imposed on domestic corporations
of like character, and such right was
impaired by an act Of that state sub
sequently enacted, which required
such corporations to pay an annual IL
cense fee double that imposed on do