Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1907-07-24
TWO MILLION OF
TAXES CANCELLED
Ell. DOHENY is ABSOLVED FROM
OIL COMPANY CREDITS
City Attorney Declares Franchise AS
sessment of Fullerton OIL
Company May Stand
as Presented

The city attorneys office, through Dep
uty Emmett Wilson, yesterday rendered
opinions for the city board of equallza-
tion. holding fast to the theory OF AS
SCISSOR Walter Mallard that foreign COM
NAMES maintaining offices in Los Angeles
must submit to assessment on lneir iran
chlses and another one faVorlnS H. -.
Doheny, who asks for cancellation OF
50. 316 $50 rated as Solvent creolts uue
from the Mexican Fetroieuh SoiiiP''
Ltd, of Delaware.
The board will probably be influenced
bv these opinions, as Attorney wilson
has acted as legal adviser for the couiicii
through all the sessions of the ooaro.
In fine foreign corporation opinion the
text is:
"You have referred to me the appllca-
tion. No. 1874, of the Fullerton OIL COM
pany for cancellation of the assessment
levied upon its franchise
Transacts Business Here
.rbe facts are these: The company Is
organized under the laws OF the TERRI
torv of Arizona, but transacts no busl-
ness in that territory except tne hoiuins
of its annual stockholders meetings.
"rThe articles of Incorporation provide
+h.+ tbe nrincipal place of business is in
the CITY of Phoenix, county of Maricopa,
territory of Arizona, at which place all
stockholders meetings shall be held, ana
the principal place of business OF the
hoard of directors shall be In the city Oh
Los Angeles, county of Los Angeles,
state of California, at which place all
directors meetings shall be held.
1.-THE real property and Oil wells OF the
companv are in Orange county, Califor-
MIA, but no sales are made except Through
the office in Los Angeles.
"All directors meetings are held In this
CITY: the company's money Is Kept In
bank here; the stock books are Kept IN
the Los Angeles office, where all trans
fers of stock are made.
an fact. none of the business of the
company is transacted outside OF the
CITY of Los Angeles except the holdlng Oh
the annual meetings of the stockholders.
''These facts were brought out In the
testimony taken at the hearing of the
application
State Taxes Franchises
.orhe constitution and laws of this state
declare corporate franchises to be prop
erty and provide for their assessment
Constitution, Article xiii, section l; 70
litical Code, sections S6l7' 1913. Inc iran
chises of corporations organized under
the laws of this state are taxable. Bank
of California VS.. San Francisco, 142 Cal.
276. 80.
"section is of article xii of the consti-
tuition provides:
mo corporation organized outside
the limits of this state shall be al
lowed to transact business WITHIN this
state on more favorable conditions
than are prescribed by law to similar
corporations organized under the laws
of this state 49,
''This corporation has come into this
state and has brought with it the fran
chise of a corporation to exercise cor
porate powers in this state.
1.-THE testimony shows that all business
exercised by the company is exercised In
this city, except the holding OF the an
nual stockholders meetings, which are
held in the territory of Arizona. Inc
company has no mere passive or qules-
cent existence here.
Compete with Domestic Firms
'It has entered into active competition
with domestic corporations engaged IN
similar business.
ITO hold that this corporation is not
subject to a franchise tax would be to
hold that foreign corporations may trans
act business here upon more favorable
conditions than are prescribed by law for
domestic corporations.
Reasonable consideration of the matter
would dictate such conclusion, and 1t has
been expressly so held in the case OF
London and San Francisco bank vs.
Block, III Fed. 300.
my conclusion is, therefore, that the
franchise of the Fullerton Oil company
is subject TO assessment"
In the Doheny case the opinion read;
1.-THE facts, as sworn to by Mr.. Do