The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-12-18
ASKS INJUNCTION
AGAINST STATE
Dalton Adding Machine Gem.
pany, Of Missouri, Fights At
tempt to Impose Tax.
CASE IN DISTRICT COURT
Three Judges to Hear Argument
To-Day on Application for
Restraining Order.

Judge Edmund Waddill, Jr.. Judge
John G. lose and Judge Jeter -
Pritchard will sit in special session
this morning in the United states Dis
trict Court to hear argument on the
application of the Dalton Adding Ma
chine Company, of Missouri for an in
terlocutory injunction 10 restrain this
Virginia state Corporation Commission
from compelling it to take out char
ter To do business in this State.
The controversy has been pending in
the District Court since October 10.
when The Dalton Adding Machine Com
pany filed bill OF complaint reclting
its grievances. Previous to that the
Corporation Commission mad served
notice upon the Missouri corporation
that under the Virginia statute it was
liable to heavy fines unless 1t COM
piled at once with the law levylng an
annual tax upon foreign corporations
maintaining agencies and doing bust
ness in Virginia.
The company prayed that the Cor
/ poration Commission be enjoined from
/ imposing or attempting to impose the
fines and taxes designated by the
statute on the ground that il was a
! corporation engaged in interstate COM
merce, ana therefore not amenable TO
the Sldlc COL pOIdtiOu TAX laws Al
torney General Williams. for the State,
filed a demurrer to the bill of COM
plant. asserting that the complainant
was not entitled 10 the relief il asked.
says 1t Has No Agent Here.
The adding machine company de-
tends it's position with the statement
that nowhere in the State does it
maintain paid agent. Its represen
tatives in Virginia il says. are merely
'drummers." working on a commission
basis, who rent their own Offices ana
employ their own help. They simply
solicit orders. ii is claimed and have
no power to close a sale without sub
hitting il TO the home Office at Pop
lar Bluff. Mo, from where all ma
chimes are shipped. Payments are mace
direct to the home Office by purchasers.
With this as its plan of doing busi-
ness. the company claims, II is not
taxable under the State laws. The
Corporation Commission. on the other
hand supported by the opinion of At
torney-General Williams. holds that
the operations OF the company are of
such a character as to require it 10
take out a State charter or cease OPP
erations in Virginia. The case hinges
upon the status of the Dalton Adding
Machine Company's representatives in
mis- State. and involves number of
'ecnnical points.
Demurrer still stands.
\ hearing on the demurrer of the
Corporation Commission was fixed for
yesterday. Thomas A. Banning, of
Banning & Banning. Chicago law
irm. appeared for the adding machine
company, and Attorney General Will
.ians was present for the State. Judge
Naddll vacated the order, fixing yes
lerday as the date for argument on
the demurrer and summoned to his as
sistance Judges Rose and Pritchard to
hear the injunction. proceedings to-
day
:udges shall sit whenever an injunction
= sought against a State. The argu-
ment today will be solely upon the
application for an interloccutory in
junction. Pending the disposition OF
:hsi matter, the demurrer stands I'M
sdiudicated.