The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1915-07-07
RAILROADS REFUSE TO PAY;
SECURE INJUNCTION TO RE.
STRAIN STATE OFFICERS
FROM MAKING COL
LECTIONS.
Question Involves Payment of 3.Mill
License Tax OH Interstate Commerce
TO Hold Hearing July is.

Columbia, July 2.-This afternoon
A, w. Jones. John p Derham and w.
G. Query. as members Of the State
tax commission; S. T. Carter. State
Treasurer, and Thomas Fl. Peoples,
Attorney General, were served with
copies of temporary injunction re
straining and enjoining them from
taking any further actions in at
tempting to charge and collect the g.
mill annual license tax on interstate
commerce" of the plaintiff railroads,
"or any penalties for non-payment
thereof" The injunction was secur-
ed by the Southern, Seaboard and
Blue Ridge railroads from d. F.. Hy-
drick, Associate Justice. The defend
ants are cited to show cause before
the circuit court of Richland county
on July Is why the temporary in
junction should not become an inter-
locutory Injunction.
The injunction proceedings are pre-
paratory to civil action by the rail-
roads against the defendants named
in the case and effect every transpor-
tation line in South Carolina.
The complaint Of the railroads
states that they have conformed with
the law in South Carolina in regard
to returns and assessments of their
property In this State, but that the
State tax commission has not yet fix
ed and determined the assessment and
valuation of their property on which
the taxes for the year 1915 will be-
come due on October Is next, but tho
plaintiffs stand ready to pay same
when they become due.
The complaint further states that
the law Of South Carolina requires
the railroads to make a written re-
port to the Comptroller General an
nually. giving a list Of their officers,
stockholders. financial condition and
any other information that he might
require; that this report was made to
the Comptroller General at the time
required by law and that such mileage
OF the railroads and their gross earn.
irgs FOR the year were set forth; that
the Comptroller General received such
report and that until the certificate
OF the railroads earnings to the State
treasurer was made no other report
was asked for. The plaintiffs state
that In this respect they fully coh.
piled with the law. 81"
After exhaustively going into the
law creating the tax commission the
complaint recites the action of the
commission in assessing the railroads
FOR their gross earnings, both inter-
state and intrastate. The complaint
alleges that the commission and the
State Treasurer exceed their authority
and misinterpret the law when they
endeavor to collect the three-mill IL
cense tax on all earnings accruing
within the borders of South Carolina.
The Attorney General is named in
the injunction to prevent him from
bringing suit at the instigation of the
Comptroller General for the collection
of the past due taxes.
The complaint recites the fact that
representatives Of the railroads ten
dered to the State Treasurer currency
for their three-mill income license
tax on their instrastate business, and
these tenders were refused.
Should this Court" said the COM
plant. determine that the intention
of the legislature of the State OF
South Carolina was to include inter-
State busines and to place a tax or
burden thereon, to wit, three tax
upon the gross earnings OF the plain
tins lines OF railway outside of South
Carolina, then we do declare that the
whole act (creating the tax commits
sion) Is invalid and contrary to the
constitution of the United States, in
that it interferes with and attempts to
burden interstate commerce."
According to the figures Of ,he
State tax commission the total gross
earnings of all the railroads in South
Carolina for the past year were s22.-
6SS.91S. and the three-mll tax. ac-
cording to the State Treasurer,
amounted to $67,765.75. The pre-
vious year the returns of the gross
earnings Of the railroads, according
to the books Of the State Treasurer.
totalled $9,4S1.S3S.64 and the three
mill tax amounted to $2S,445.S1.