The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1922-11-25
DC, To TAX
OUTSIDE
FIRMS
Protection for Local Merchants
Planned by Assessing Tenn
porary Vendors.

District business houses are to
receive protection against out-of-
town firms which come to WASH
ington and, through not having to
pay the taxes and other expenses
borne by the local houses, are
able to undersell them.
Must Bear Cost.
According TO a bulletin issued by
the Washington Better Business Blu.
reau, the District board OF personal
tax assessors has already taken steps
to see that such firms shall bear
their proportionate cost Of doing bust.
ness in the District.
A test case. the bulletin states, has
been made In the case of Franklin
Simon & Co., a New York firm which
has just completed an exhibition at
the Wardman Park Hotel. The sale
was called TO the attention of the tax
board by the Better Business Bureau,
and men were sent to investigate
the exhibit.
With the data in its hands, the
board then sought legal advice as to
its powers in the matter, and, after
a number of conferences with legal
experts. tax levy OF $4,000 was
assessed on the New York firm and
bailiffs were sent to the hotel with
instructions to collect the tax or
bring back the goods. according to
the bulletin.
Attorneys for the company, IL is
said. appeared the next morning
before the tax board and. under
protset. paid tax on $4,000 worth
OF merchandise.
To Assess Others.
F.. X. Wholley, director of the
Washington Better Business Bureau,
declared that he had been assured
by the District tax officials that all
other firms coming into Washing.
ton. until the Franklin Simon & Co
case is decided. or any other case
that may be tested is decided, will
have to pay their proportionate cost
Of doing business In the District and
that they will be assessed as all
other legitimate business firms are.
Wholley declared that he is now
engaged In completing the framing
Of an 'itinerant vendor act" which
will cover the taxing Of such firms.
This act. he said, will be presented
for Congressional action early next
month.
1t contains three important fea-
lures: A tax on exhibitions and
sales conducted in Washington by
all out-of-town firms imposed b.
means OF a license, which must be
taken out before the firm In per-
mitted to come here: collection of
bond to protect Washington peo-
pie who may purchase goods from
such a firm In event the goods are
defective or otherwise unsatisfac.
tory; and a fine to be imposed
upon such visiting firms as may be
found guilty of failure to procure
the required exhibitors license.
. This bill, Wholley ssaid, has been
under consideration for nearly a
year and has the hearty support of
the District Commissioners and
other District officials and Of Wash
ington business men and organiza.
lions.
The bill Is aimed directly at firms
which come here for short periods,
leasing rooms or lobby space In
local hotels. to exhibit goods and
samples and to either make direct
sales or take orders for goods.
These concerns, Mr.. Wholley ex-
plained, had great advantage over
District firms In that they paid no
tax, paid no high rentals. and sold
for cash only. thus avoiding doubt
full credit accounts. AT the same
time the public received no protec.
ton In case Of the sale of poor
goods.
The, bill will also tax travelling
street vendors. who come here for
only a dav or two during conven
tiors or similar events.
Much has alreadv been done II
discourage the exhibitions Of the
kind covered by the bill, wholley
9afd