The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1907-08-07
STATE LICENSE ACT VALID.
THE STATE SUPREME COURT RE
VERSES ITSELF.
Case of British and American Mort
gage Company, After Rehearins,
Won by Attoreny General lyon
State Would Have Been Deprived
of Large Revenue Annually Had
First Decision Been Sustained.


First Decision Been Sustained.
Columbia. Aug. 2-The supreme
court has reversed itself in the case
of the British and American Mortgage
Company and Attorney General Lyon
has won distinct legal victory, The
court several months ago rendered
decision which in effect declared the
franchise license act of 1904 unconsti-
tutional and would have deprived the
State OF a large revenue annually. At
tornN General Lyon, representing
Comptroller General Jones, filed pc
tition for rehearing, which was
granted. and upon this hearing the
court has filed second decision sus-
.taining the position taken by Mr..
Lyon and holding the act Of 1904
valid. The first hearing of the case,
when the State lost its case, was be-
fore Mr.. Lyon entered the attorney
generals Office.
The case was brought by the Brit
ish and American Mortgage Company,
British corporation, to secure an in
junction restraining the comptroller
general from collecting the tax Of one
half of one mill upon the property Of
the company in this State, it being al
legged in the petition that the compa-
nv did not transact its business in this
State, the contracts being perfected
in New York This was the main
point upon which the company's at
torney, Mr.. John P. Thomas, Jr., OF
Columbia, expected to win the case.
He was one of the legislative com
mission which framed the act Of 1904
.and he had no idea Of upsetting 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 previous act unde-'
which foreign corporations We're Ii
censed they were given all the privi-
leees and in1munities of citizens OF
this State.
It was held. however, that the su-
preme court had interpreted the act
of 1898 enormously in that the said
act does not. in licensing foreign cor
porations. confer upon then all the
rights and immunities Of private cit
izens of this State, but confers upon
such foreign corporations the rights
and ir,lrunities enjoyed by private
citizens of other States and Of for
eign countries doing business in this
state. 1t was also pointed out that
the license issued to foreign corpo-
ration under the the act Of 1898 ex-
pires after twelve months and is re-
newed for each year, and that the
court overlooked this point, which
differentiated the case Of the British
and American Mortgage COMPANY
from the Colorado case on which the
supreme court had relied; in this case
the license granted by the State to
the Smelter Company being for "a
term Of twenty years
The attorney general on the rehear-
ing contended that in renewing the
license each year the company Gid so
with the restrictions and qualifica-
tions Of the laws of this State in force
at that time; consequently when the
license was taken out for 1904 it was
subject to the provisions o. the fran
chise tax act of that year, which nad
been enacted before the license Tor
thae year was granted. The supreme
court now sustains the contention OF
the attorney general on both these
points. which had not been taken into
consideration in the former opinion
The case, as stated above. was ar
g-,ed for the state by Attocey Cen
eral LYON and his assistant. Mr. N. p
Debruhl.