Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1915-07-10
ATTACK MADE. ON
THE NEW TAX LAW
Permanent Injunction is
Granted on Petition
of Armour e Co.
| IMPORTANT ACTION

IMFOhI AIN i AZ lIOIf
Company Charged Discrimination III
New Law Which Listed as Pur-
chases Goods Made Elsewhere.
Richmond, July 10.-Under an Or
der entered yesterday by Judge Z.
Carter Scott, of the City Circuit
Court, which stands unless changed
nr enlarged by the court later. Ar
mour & Co. is granted d permanent
injunction restraining State Auditor
of Public accounts c. Lee Moore and
certain commissioners Of the revenue
of Virginia towns and cities, from
requiring the company to include as
purchases the goods manufactured by
it outside of Virginia and brought
here for sale, in its application for Il
merchants license tax TO do business
in the respective cities and towns
named.
A temporary injunction to this Ell
feet was granted Armour and Co., by
the court on May Is. This order wHs
to have expired today unless pre-
viously enlarged. The order entered
by Judge Scott yesterday makes the
temporary restraining order effective
until changed or enlarged at soTe
time in the future.
The company attacked section IS
of the new tax code, which hecamc
effective on March 10. 1915, defining
the requirements for merchants licen-
Sc taxes. In the bill accompanying
their original prayer for an injunc-
ton. Armour and Co.: set forth thai
th.y operate ntnnrrUuS pdchlh; alf'
other manufacturing plants in large
Western and Eastern cities. The po!Ht
was made that the business in which
the company is engaged is "pecu!lai-
" manufacturing business"
Complaint was registered agalnF;
the obligation imposed by the new tax
law which requires. the several bran
ches and distributing houses main
tanned by the company in this State.
to include as purchases, for the pur-
nose Of determining the amounts of
their merchants license taxes, al
goods and wares manufactured by
the company outside the State.
The section the company charged
operates to discriminate in favor
of resident manufacturers burden
of taxation in order to dispose ot
their products in Virginia. which IS
not imposed on nonresident manutac-
turers who are expressly exempted
under section AZ of said tax bill from
pavment of merchants license tax,
The company expressed It's wiling
ness to provide its several branches
with merchants licenses based on
what it calls actual purchases. Il!
claimed the same privilege accorded
resident manufacturers in the mat
fer Of exemptng wares and products
Of its own manufacture.
In point of the amount of revenue
that will be lost to the State, the IN
junction, which was practically made
permanent by Judge Scott's eniarg-
ing order Yesterday is OF the f1rSt
inheritance. II represents the tirSt
successful attack on section OF the
fax code ratified by the recent spccIal
session of the General Assembly.
The injunction applies to {. Lee
Moore under whose orders the at
tomnt was made to enforce the Sec
,ion to which objection was taken, ana
to the following commissioners oi
+bo revenue in cities and towns where
the company maintains distributing
Offices: Joheph B. Anderson. Danvll'e;
n r. Hunt. Roanoke; w. II. Snead'
Lvnchburg; Charles H. Callahan
. Alexandria ID. w. Fowler, Charlottes'
,::;lIe. Henry f. Tresnon, Richmond;
p /. Cosby, Newport News; +. D.
Doran Norfolk; +. a. Heatwole
Harrisonburg; and W. H. Fletcher