Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-04-17
STATE WINS IMPORTANT
DECISIONS IN TAX CASES
Right to Tax Foreign Corporations
Doing Business Here Is
Fully Upheld.
DECISION OF SUPREME COURT
Dalton Adding Machine and General
Railway Signal Cases Had Been
Appealed From Decision of State
Corporation Commission.


Corporation Commission.
Suits by the State o: Virginia
against the Dalton Adding Machine
Company and the General Railway
Signal Company, involving the right
of the State TO tax foreign corpora
tons operating within its confines.
have been Won by the State In ,ne
United States supreme Court. il wa,
Yesterday announced by Assistant At
torney General Hank. who began the
suits while he was assistant TO At
torney-General Pollard Neither in
wolves large sum, but the principle
upon which the State bases its right
to tax foreign concerns is pronounced
sound.
The first case originated in the Cor
poration Commission which cited the
Dalton Adding Machine Company TO
show cause why it should not be fined
for doing business in Virginia with
out first complying with the laws OF
:hc State. The Dalton Adding Machine
Company is a foreign corporation.
organized in Ohio. and sends mach hines
TO Virginia 70 be displayed here Tor
sale and then sold.
Before foreign corporation can DO
business in Virginia it IS necessary for
il to file copies OF its charter with the
State Corporation Commission, name
nrocess can be served. and pay =
license based upon the amount OF
capital stock OF such corporation. The
company took the position that be-
cause OF the way IL conducted bust
oess, It was engaged entirely in IN
terStatc commerce and therefore was
not aInenahle to State laws. and did
not have TO comply with State laws
before il did business in the State;
that il was protected by the Federal
constitution and that TO compel l. to
comply with the state statute would
lee 10 burden interstate commerce..
The company showed that il sends
It's machines into Virginia and puts
them on exhibition in the city OF Rich
nond, allowing its customers 10 test
the machines, and IL DESTROYS OF ouE-
ms them the customer then signs an
order which is sent 10 Ohio for APP
proyal before the sale is considered
completed and the title TO the prop
crty passed.
FINED $1,000 By THE
CORPORATION COMMISSION
The Corporation Commission decided
,ha, this method Of doing business was
not interstate commerce. ana hncd the
corroration $1,000 for not complying
with the State laws before doing bust
ness here The corporation. thcrcupo".
appealcd to the supreme Court OF Me-
sinia. which sustained the position OF
tho Corporation Commission, ana from
tho Supreme Court of Virginia. tho
case went TO the Supreme Court of the
Cnited States which has just ahirmea
the decision OF the Supreme Court or
Appeals OF Virginia
The General Hallway signal Com
pany &. a New York corporation Which
soils and instal!s railroad signals. ana
came to Virginia 10 install, and dia
Install for the Southern hallway Com
ns
railway line. This corporation IN
stalled signals for the southern Rail
way Company TO the amount %! some
100000, and during the las !nsta! ma
ton one of the employees was inluTea'
When the company refused 10 Pay 10:
such injuries. suit was Instituted, ana
counsel found tina: there vas no one
in the state upon whom he could serve
proccsE on inquiry =, the Corpora
ton Commission 5 20 Who was staiu-
tory ascr; upon whom process consd
be served II was found that the cor
poratlon had never comrhcd WIN the
laws Of Virginia before doing business
here
The Corporation Commission, asceT-
;ai.ing tina; this company had been
carrying on extensive operations N the
state, Immediately cited the GONNA ny
- show cause why It should not he
fned for failure TO comply WIN INC
law Of Virginia ~ reg4rd TO foreign
corporations. "a -.
TAX on PROPERTY
OUTSIDE or STATE
on. O. ,hs positions taken by the
company was tina, the license fee be.
ing h.scd on the amount az toia!
,.anitai s,ocE was Il burden on inter
state commerce because II 'a%td mon
,-,y OUTSIDE of III" state Fhe state
az Virginia required all foreign corr
rorauons whose capital stock IS over
81 tco. 600 suG not 20 exceed $40 600 coo.
n.fore they arc permitted 10 do hHci-
ress in Virginia, 10 pay into the STATE
'rreasury the sum OF $1,000 and ;he
position Of the cOnpany was that "a