Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-03-07
City GETS REHEAR|NG OF
DREWRY-HUCHES CASE
Supreme Court VIII Again Rcview
Claim for Tax ON Merchants
Capital.
STATE TAX BOARD JOINS
Appeal is Also Granted to City In
Case Against q. ~. Berry & Co.
From Judgment OF Hastings Court.
Far-Rcaching Questions Involved.

Another day in court will be given
The city of Richmond in it's case
against the Drcwry- Hughes Company,
involving the tax rate on merchants
capital which the city claims should
lie the local rate OF $40, but which
the defendants claim should be only
80 cents on tho 800. The state Su-
prcnc Court OF Appeals yesterday
granted the city's petition for a re-
reviewed
The controversy is rcgar ded as the
most Serious that has developed since
the adoption or the new system OF
partial segregation. With the city of
Richmond has Joined forces the State
Ia. Board. which. through Executive
Assistant .. L. Shewmake, has filed
a supplementary brief. More than a
dozen Of the counties of the State.
which Will have to refund varying
Gums In the event the case Is finally
decided against the city. have likewise
Joined in the petition.
The court also granted an appeal
In the case OF the city Of Richmond
against Q. II. Berry & Co. from the
Judgment OF the Hastings Court en-
tered on December Z, 1916. in which
identically the same point as is rails
cd In the Dycwry Hughes case was de-
cided In favor or the defendant The
city taxed o. II Berry & Co.'S capi-
tai at $40. but tho Ifustings Court
sustained the defendants contention
that It's capital was taxable ut only
80 cents on the 500. and directed a
refund OF 1885.
CITY PETITIONS
FOR \ REHEARINtS
q simila. decision by Judge Rich
ardson In the Drewry-llughes case had
been appealed TO the Supreme Court
and sustained. The city thcreupon filed
n petition for a rehearng in which the
State Tax Board joined after adopting
a resolution In which IL declared that
the nnal decision OF this question, in
the opinion OF the board. Is fraughe
with far-rcaching consequences, both
TO the cities and counties and also TO
the system Of taxation in Virginia. the
general supervision and control of
which Is IN the hands of this board"
Both the Drewry- Hughes and -. III.
Berry cases involve the power OF 10
calities to impose :. tax on the capital
OF merchants in excess Of 30 cents on
the 500. and both cases will there
fore be determined by the unal out
come OF the rehcarinS granted in the
frst-named case.
4 final decision adverse 10 tho city.
IL has been estimated. would curtail
IT'S annual income moro than 100000.
The loss that would accrue to- other
cities and counties OF the State. many
Of which have collected taxes mcr
chants capital at rates varying from
81 To s2.25 on the 500, II is believed.
would be somewhere near 100000. In
Wise County s1i.20S.io has been col
lected from this source on the basis
rate bc finally upheld, this county alone
would have 10 refund to merchants
Sll.g1i.75.
TAN BOARD ADOPTS
ARGUMENT OF CITY ATTORNEY
In its supplementary petition to the
Supreme Court. tho State Tax Board
adopted in the main the argument OF
II. X. Pollard, City Attorney OF Rich
mond, and directed judicial notice TO
tho fnct that II has continually in the
performance Of its duty relative to the
instruction OF local taxing officers. ad-
vised them that under tho segregation
act the capital OF merchants was not
included In the class of Intangible per-
sonal property on which the localities
We're limited to levy OF 80 cents on
the 500, and has repeatedly advised
them that the rate of such taxation
was to be fixed by the various boards
or supervisors in their discretion.
merchants was taxed at Il rate in en-
cess OF 80 cents on thh 500, by the
following counties:
\ comac, Albcmarlc. Allegheny.
Amelia, ApponattoN, Augusta. Eath.
bedford, Eland. Sotetourt BuckinS
ham, Campbell Caroline. Carroll.
Charles City, Charlotte. Craig, CUT
pepper. Cumberland. Dickcnsop. Dim
widdic. Essex. Fairfax, Fauquicr.
Floyd, Fmvanna. Franklin. Giles. Giou-
cester, Goochland. Grayson. Grcenes-
vile. Hanover, Henry. Highland, Isle
OF Wight. James City, King and
Queen, King William, Lancaster. Lee.
Louisa. Lunenburg. Madison, Mathews.
Mecklenburg. aIiddieseX. Montgomery.
Nansemond Nelson. New Kent. North
ampton. Northumberland. Page. Pat
rick. Pittsylvania. powhatan, Prince
George. Prince William, Pulaski Rap
pahannock. Richmond, Roanoke. Rock
bridge. Rockingham Russell. Scott,
Shenandoah. Smyth, southampton. STAFF
ford, Surrey, Sussex. TaZewell. Warren,
Wcstmoreland. Wise and Wythc.