The Mathews journal. (Mathews C.H. [Court House]) 1903-1937, 1910-09-01
BOOK HOUSES MUST
PAY FRANCHISE TAX
Under Ruling Of Judge Williams
State Would Receive That
Beneft-None Has Yet
Complied-Msy Go
to the Courts
RICHMOND. yA-special-

X c H NJ o ND, VAS ecial.-
The book concerns which got the
contracts for furnishing school books
10 the State OF Virginia for the next
four years will have to ''domesticate"
before they can supply the books or
allow them to- be sold in. the State OF
Virginia.
Such is the ruling OF the Attorney
General. and he declared today that
he stands ready to occupy this ground
as long as he Is In the office to which
the people have elected him.
Discussing the matter, Judge Will
liams says that the book concerns
which annually get about $45O,OOO a
year out of the State, are doing busi-
ness in Virginia when they contract
10 furnish books. The local publish
ing concerns are required to pay this
tax TO the State-the franchise tax
ana ne Is or opinion that in requiring
the franchise tax OF the local con-
Germs the foreign corporations are
amenable to the same laws, for the
reason that they are doing business
In Virginia, and doing a pretty good
business.
In order to enforce his position,
Judge Williams has refused to exc
cute any contract with any Of the for
eign companies until they shall have
paid to the State Corporation Com
mission the franchise tax, and as
there are some twenty-one or more
OF these companies, with capital stock
aggregating at least $25,0OO,OOO, the
State OF Virginia will receive / per
cent. of that amount before the new
books can be placed on the lists in
Virginia
One Firm Makes a Kick.
1t Is no secret that one of the big
concerns has made a kick-a large
and long and loud kick-and writes
that 1T is engaged in interstate COM
merce. To which Judge williams re-
plies that there are other concerns
which are engaged in interstate COM
merce in Virginia. that they have
agents in this State, and that mas
much as the concerns which are to
supply the books are required to give
bond for the faithful compliance with
the provisions of the award, they are
required to have an agent on the
grounds on whom process can be
served.
1t is for this reason that the De-
partment Of Education has been
forced to issue to the division school
superintendent a notice giving rea-
sons why the new book lists have not
been officially placed in their hands
together with the statement that until
the companies which were given the
award comply with the ruling of the
Attorney General the contracts can
not be completed or the books placed
on sale.
May COmpIicate Matters.
What the effect of this ruling may
be on the schools OF the State is con-
Jectural. The schools are to open
within three weeks, and the pupils
coming session. Whether the books
formerly on the list can be used is in
doubt. If they are used the firms sup
plying them will. in the light Of the
ruling, be required to obey the decis-
ion Of the Attorney General and paw
franchise demanded ~ 10
new concerns. One thing is certain
Judge Williams will stand his ground
and fight for his Interpretation of the
Constitution of the State. 1t may be
possible that IL there can be no ar
rangement made that the local pub
fishing houses will BE given contracts
for supplying all the books which are
used for the various studies, and then
to call for new bids for such books
as are not published by the local
concerns.
Right there comes another hitch If
the firms and companies which made
bids for complying with the provisions
and terms of the bid submitted certi-
fed checks as evidence of good faith
and intention to abide the laws of
the State, and they shall fail to follow
the directions and interpretations of
the law by the Attorney General are
not such checks forfeited to the State
of Virginia? That is one phase of
the question which is being consid-
cred.
VIII They Comply Under Protest?
1t remains TO be seen if the book
companies involved in the present af-
fair will comply with the demands OF
Judge Williams under protest, placing
the books on sale as required by law
and then test the validity of the ruling
in the courts of the State. If that is
done sometime will be required to be-
gin the proceedings and to carry
them through the several courts Of
the State, for there is no question
whatever that Judge Williams intends
to fight the case to the end. This is
an unexpected possible source of rev.
enue, and heretofore the book con-
Germs have come in and gotten the
cream of the business and gone away
without putting copper into the
Golfers of the State.
Judge Williams says that he has no
other purpose in the world in view
other than to put the foreign con-
Germs on exactly the same footing as
the local companies, which employ
local men to do their work-printing.
binding and compiling the publica-
tions-while the foreign concerns are
not required to pay any taxes to the
State. 1t is believed that the Attorney
General has consulted gentlemen in
terested in the subject of education
and those who are also familiar with
the Constitution, and the impression |
is that the legal element declares
that the position of the Attorney Gem
eral Is sound in every respect.