Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1915-07-30

STATE WILL APPEAL.
Packers Ailege Section as to NeT-
chants Licenses is Unjust TO Non
Resident Manufacturers.

Richmond. July 30.-Holding that
section IS of the new Virginia tax
law is unconstitutional, Judge R.
Carter Scott yesterday hande{ down
an opinion in the case of Armour and
Co. against the Commonwealth. A
permanent injunction is awarded, re-
straining Auditor c. Lee Moore and
commissioners of the revenue in ten
cities and towns in which Armour
and Co. have branches from requir-
ing the concern to report as purchas-
es, as basis for its merchants IL
cense tax, the value of products, man
factured at its own plants outside
the State and offered for sale with :
in Virginia. The nam point In
Judge SCOTS decision is that sec +.
tion As controvenes the Interstate
commerce provision of the Fedora!
Constitution.
Sitting in the Circuit Court Of
Richmond in May Judge Scott grant
I'd temporary injunction on the ap-
plication of Armour and Co., and
later extended the restraining orde"
indefinitely, pending arguments Of
council. The complanants were re-
presented by Eppa Hunton. Jr., o.
Richmond, and w. T. Hall Of Roa
noke Assistant Acknowledgement!
Christopher B. Garnett appeared for
the Commonwealth. The case is re
'sartlci as cre Of the rtfi"st in;ros-.
tance. and stands out as tiie first
successful attack on the new tax Sys-
tom, adopted by the General Assem-
bly, at the extraordinary session last
winter.
Mr.. Galnctt said last night that
the Commonwealth would take the
,ase to, the Supreme Court Of APP
leals. IN view of the fact that Judge
Scott holds that the statute conflicts
with the Federal Constitution, Fthe
case may finally go, to the Supreme
Court of the: United States unless
the General Assembly at, its session
next year SHOULD remedy the defect
poiifted out by the court.
Auditor Moore last night called at
tention to the attitude of the Natio-
nal Biscuit Company, of New York,
in contradistinction To that OF Ar
mour and Co., The biscuit company
readily agreed to comply with the
law requiring local merchants licen>
scs for its several depots in Virginia
and sent representatives Of it's le
gal department to Richmond for the
purpose OF ascertaining the require
ments of the new statute.
The auditor expressed the heliet
thta not nearly all Of the foreign cor
Dorations. which occupy similar
position to that of Armour's would
take advantage of the injunction.
but that many would follow the
course pursued by the National Bis
cult Company. Mr.. Moore was not
able to make an estimate of the loss
Of revenue which will result from
the courts decision Armour. and Co.
has given no figures on which its
merchants license tax might be has-
cd, but he was of the opinion that
the loss would he three or four times
as much as the concern now pays in
taxes to the State and several To-
calities where there are agencies.
In its bill of complaint. Armour &
Co., attacked section 45 as Il discrl-
minatory provision against foreign
manufacturers. 1t was set forth that
the company operates numerous
packing and manufacturing plants in
Western and Eastern cities, and that
the business in which it is engaged is
:"peculiarly a manufacturing busl-
ness" Under the section complain
ed of the several branches, and dis
tributing houses of the company in
Virginia were required to include as
purchases, for the purpose Of as
certaining a basis for the merchants
license tax. all goods and wares man
ufactured by the company outside
the State.
!: The section, the company charged,