The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1907-08-07
FRANCHISE LICENSE ACT
VALID.
STATE SUPREME COURT RE-
VERSES ITSELF.

Case Of British and American Mort
gage Company. After R~ehearing,
Won by Attorney General Lyon
State Would Have Been Deprived
of Large Revenue Annually Had
First Decision Been Sustained.
Columbia, August Especial: The Supreme
British and American Mortgage Company
and Attorney General Lyon has won q dis
tinct legal victory. The Court several months
ago rendered a decision which In effect de-
constitutional and would have deprived the
State OF 8 large revenue annually. Attorney
General Ly on. representing Comptroller
General Jones, filed q petition for q reheariDg,
the Court has filed a second decision sustain.
ing the position taken by MIR. Lyon and bold
Ing the Act Of 1904 valid. The first hearing OF
the Gaze, when the State lost It's case, YVES be-
fore MI. Lyon entered the Attorney Generals
office.
The case was brought by the British and
American Mortgage CompanY,a British corr
poration, to secure an Injunction reslrainipg
the Comptroller General from collecting the
tax of one-hslf OF one mill upon the property
OF the company in this State, 1t being alleged
in the petition hat the company did not
tran sact Its business In this State. the con-
was the main point upon which the com.
pany's attorney, Mr.. John P. Thomas, Jr., Of
Columbia, expected TO win the case. He was
one OF the Legislative commission which
framed the Act OF 1904 ard be had nc idea Of
upsettipg that law. But the Court decided
the case upon another point, holding that the
Act OF 1904 Disseminated between foreign and
domestic corporations, whereas in a previous
Act under which foreign corporations were
licensed they were given al the privileges
AMI im nm hala OF Gi,,sens ,6 OF th rs STATE,
Court bad Interpreted the Act of 1908 errone-
ously In that the said Act does not, In licens-
Ing foreign corporations, confer upon them
all the rights and i%mmupities OF private citl.
doing business in this State. 1t was also
pointed out that the license issued 10 q for
eign corporation under the Act OF 1898 expires
after twelve months and 10 renewed for each
year, and that the Court overlooked this
point, which differentiated the case OF the
British and American Mortgage Company
ION the Colorado case on whibh the SUI
preme Court bad relied, In this cHse the H.
cense granted by the State TO the Smelter
Company being Tor a term Of twenty yeare.
The Attorney General on the reheafiDg
conteDdtd that ip renewing the license each
year the com sny did SO With the restrictions
and qualifications OF the laws Of this State in
force at that time; consequently when the
license was taken out for 1904 IT was subject
that year, which had been enacted before the
license for that year was granted. The Su-
preme Court DOW sustalns The contentious OF
the Attorney General on both these points,
In the ioImer opinion.
The care, as stated above, was argued for
the State By Attorney General Lyon and his
assistant, MIR. NJ. p. DeBruhl.
While the first opinion rendered did not ap-
ply directly TO any corporation except the
British and American Mortgage Company,
II did In effect srrly 10 all 1UIejgn corpora
tions doing business in this State, any enc Of
which could hnve aTplitd for end oblajped q
similar order. AZ q result the State wOnId
have lost sbt VI so COO e,tn,e ntm the IL
cense tax. Sttn AI1er The fist decision was
rcDdeled The Wbre ShCnih Company q DO
nestle CO, poialiop, 81 piled Tor a similar
older, claiming that The domestic CORPORA.
lions would be Other wise discrimip ated
against in favor OF 1CItigD cC1pOI stiCDs I'M
der this Interpretation of the 1904 Act and this
case is q ow pending.
Attorne y General Ly on was generally con-
graduated to-day on the winning of this
case.