Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1916-01-18
AUDITOR MOORE
IS SUSTAINED
Supreme Court Renders Far
Reaching Decision on
Licenses
y .4-4-
ARMOUR'S TEST CASE
ARMOUR's TEST CASE
Status of Manufacturers Who Sell
Products at Places Other Than
Those of Factories.


Court of Appeals has handed down s
decision, which, according to Assist
ant Attorney General Christopher B
Garnett, is the most far-reaching and
the most momentous victory the de-
partment has won in some time. This
is the case of Armour 4 Co., VS.. the
Commonwealth of Virginia, in which
the great packing company sought,
and did secure, an injunction against
the Commonwealth in the matter ct
taxing all stores maintained hy the
corporation in this State and which
perpetual injunction, secured before
Judge r. Carter Scott, of the City
Circuit Court of Richmond, has been
dissolved by the Supreme Court Of
Appeals.
According to Mr. Garnctt, this de-
cision will mean many thousands OF
dollars annually to the State, and had
the case been lost other firms, that
have been paying the merchants Ii
cense would have been freed from
such duty, and this amount would
also have been lost to the State.
Some time last May, State Auditor
c.. Lee Moore, after consultation
with Assistant Attorney General Gar
nett, decided that such concerns as
tts9 * 5 se''ai.IpaHy, sfouiti
pay a regular merchants license for
such stores as they maintained in this
State. The company mentioned was
not the only one concerned, for there
are many other manufacturers that
will be affected by the decision.
State Auditor Moore argues that
when 4 manufacturer establishes q
store for the sale Of his goods other
than the place of manufacture, the
State merchants license tax required
by sections Nos. 45 and 46 of the tax
laws is graded according to his pur-
chases, and all goods, wares and mer-
chandise manufactured by such mer
chant and sold, or offered for sale,
at a place other than his place Of
manufacture shall be considered as
purchases. In other words, both the
resident and nonresident manufactur-
or who establishes a store of place Of
sale other than the place of manufac-
turc, is required to take out State
merchants license and the amount
of the State license tax is to be
graded not only by the amount of
the purchases by such manufacturer
from other manufacturers, but also
by the goods, wares and rerchan-
disc manufactured by him and sent
from the place of manufacture to his
store for sale. He is required to re-
port to the. commissioner not only
the amount o.. goods purchased by
him from other manufacturers and
offered for sale, but also other goods
manufactured by him either within or
without the State and offered for sale
by him at the store or other definite
place in this State other than the
place Of manufacture.
There is no distinction made by
the Auditor between manufacturers
of Virginia and of other States.
The State merchants license law
requires all merchants to pay a Ii
cense tax based upon the purchases
of the merchants, and provides that
where merchant offers for sale at
place other than the place of manu-
facture goods, manufactured by him,
these goods shall be considered pur-
chases in fixing the merchants lie
cnse.