The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-05-13
TOLD TO EXERCISE
/. ACKNOWLEDGMENT
-rrcslron Ordered, However, to
Value Purchases Made by
Standard Oil.
COMPANY GETS MANDAMus
COMPANY GETS MANDAMUs
Litigation Outgrowth of Tax In
vestigation Recently Made
by Grand Jury.


With qualifying clause which
takes away much OF the value of its
legal victory. the Standard Oil Com
pany received yesterday mandamus
from Judge II. Carter Scott, in the
city Circuit Court, directing Commits
sioner Of the Revenue Henry Il. Tres
non to value the purchases OF that
company for the purpose OF Issuing to
ii an annual license Judge Scott
added to the formal mandamus order
the note: But nothing in this order
is meant to prevent the Commissioner
of the Revenue from exercising his
own Judgment in coming to conclu-
sion as 10 what tho amount OF goods
actually bought were"
Outgrowth OF Tax inquiry.
The issue is an outgrowth CT the
recent grand jury investigation of tax
matters. Commissioner of the Revenue
Tresnon holds that the local office or
the Standard Oil Company must pay
license tax based on the amount oil
its purchase, and in this position he
was upheld by the grand jury That
issue Is now pending final deter
mnation, and will, no doubt, be APP
pealed. no matter how II is decided,
as several intricate points of Tax law
are involved. The local office OF the
Standard OIL Company admits pur-
chases during the vast pear OF $4,000.
AS matter OF fact. 1t did business
or about 100000. but claims chat the
difference was merely goods shipped
here from ether agencies. or from the
general headquarters of the company,
and was not goods bought" within
the intent OF the law.
Contention nv to License.
In making the license tax assess
ment for 1919. which Is based on the
volume OF purchases. the same con-
tention arose. Mr. Tresnon was WILL
ing to issue license based on the
total amount OF business done. The
Standard Oil Company wanted its Ii
cense tax based only on its let puf-
chases-which en- It's own statement
amounted to but Il small proportion OF
its local business. Through MEnford,
Hunton Williams & Anderson, the
Standard Oil Company applied TO the
City Circuit Court yesterday for q
mandamus, compelling Nthe Commits
sioner or the Revenue to Issue 1t
license, and the case was argued at
length by Mr. Hunton and Mr.. VII
liams for the company, and Attorney
General Williams for the State. Mr.
IIunton contended that his client was
not attempting to evade taxes legitl-
nutcly cue. or to conceal from the
taxing officers the true state OF Its
business. but that it would maintain
sent here from other branches of the
game concern were not purchases, and
were not taxable purchases.
Attorney General Williams held that
all shipments from other branches
were purchases within the meaning
Of tho law. and, for the purposes OF
taxation, as otherwise the state would
be unable to assess a license in pro-
portion TO the amount of business &C
tually done.
Mandamus Order Entered.
Late in the afternoon Judge Scott
directed the clerk to enter mandamus
order to compel Commissioner Tresnon
to ascertain the amount of goods act
ually bought by the Standard OIL Com
pany during the twelve months preced
ing April /. in order that the Standard
Oil Company may apply for license
to transact the business of a merchant
in this city. Later message was re-
ceived from Acknowledgement Williams
asking that the order be not spread
on the record until he had further OPP
to be heard, and 1t is pos
sible that proceedings will he had to-
day TO further amend or modify the
court order.
1t was the belief of those NJ the court
session that the addition of the clause
providing that nothing i'll the order
was meant to prevent the Commissioner
of the Revenue from exercising his own
Judgment in coming to conclusion as
to what "the amount of goods actual
~ bought" were made the order a prac-
teal victory for Commissioners Tres
ron. as in his answer to the bill filed
by the Standard OIL Company. he had
offered to do that very thing. In other
words, IL instructs him to make an as
sessment as he construes the law as
the basis for the annual merchants
license. and does not limit him to the
statement of actual purchases conceded
to have been made by the Standard Oil
Company from other parties than its
own agencies in the conduct OF its To-
cal business.