Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-01-05
COLLECTION Of TAX
ON TOBACCO DURING
|. LITIGATION SOUGHT
State Attorney General Ma
pier Files Petition in Court,
Suggesting Rebate If Levy
Is Voided

DeCldClnS llllSdtlOn over luS
states new cigar apd cigarette tax
probably will go to the United
States supreme court and be unde-
cided for a year or more, Attorney
General George M. Napier Thursday
asked Judge Bell, in Fulton supe-
rior court, to modify an injunction
granted Tuesday, SO that the state
revenue department can go ahead
with the collection Of the tax, and
turn over the money in dispute to
trustee named by the court. This
motion was set for a hearing at III
o'clock Friday morning.
The plea of the attorney general
stated it will be difficult. and in
MANY cases impossible, to collect
the tax, if the payment is help up,
and the longer the delay in adjudi'
eating the matter, the more serious
the loss to the state.
"Since these special taxes Will be
very heavy in the city of Atlanta, the
losses to the state would be tremen'
dous if the collection Of the taxes To-
cally should be delayed and avoided
by reason of the pending litigation.
If the entire state should be drawn
into this litigation, the losses would
amount to millions" the motion sets
out.
Pensions Dependent
"The beneficiary objects of this
special tax, as named in the petition,
are among the worthiest existing III
this state. Upon the collection of
Of
to Confederate veterans, which pay
ment has been delayed until many Of
those entitled to pensions have be-
come in need; and likewise the sup
port of the state sanitarium for tuber-
cnlar natients depends upon the
prompt collection of said taxes.
"It is highly desirable that the in
terests of the state be fully protected
and that the litigation be terminated
as quickly as justice may allow.
Therefore, these defendants, by
leave Of the court, files this motion
and prays the court to allow the col
lection of said special taxes on deal
ers of cigars and cigarettes to pro
coed; that the moneys collected by de-
PENDANTS, their assistants, agents,
and deputies, may be delivered over
to a custodian to be named by the
honorable court, who shall be requlr-
ed to make bond for the safe handling
of SAID moneys, to deposit same in
one of the banks of this city; and
that said moneys shall be held sub
ject to the order of this court, to be
paid over to the commissioner OF
revenue of the state, and in turn to
the state treasury, or be refunded to
the parties who pay said taxes, ac-
cording to-. the final adjudication Of
this matter"
Miner to Aid Napier
Attorney General Napier stated
that he had received a message from
Representative Herman Miner, of
Dodge county, author of the bill pro-
viding for the cigar and cigarette
tax, offering his aid in combating
the effort to have the law declared
unconstitutional. Mr.. Miner is a
well-known Eastman attorney, and
the attorney general stated that he
would welcome his assistance in the
pending court battle.
The act under fire was passed at
the regular session OF the Georgia
legislature last summer and levies
10 per cent tax on the retail prices
of all cigars and cigarettes.
misrepresentation Blamed
ReI resentative Miner gave out
statement at Eastman Wednesday,
declal ing I he objections raised in the
court proceedings here were offered
before the committees of the house
and senate to which the cigar and
cigarette tax bill had been referred,
but the best lawyers in both
branches of the legislature decided
that the objections were without le-
gal foundation
John NJ. Vandiver, state commits
s1oner of revenues, declared Thurs
day he had Eeen informed that sew
eral of the plaintiffs in the court
action acted under a misapprehen-
sion, and will withdraw their names
from the petition. The dealers were
under tie impression that they had
to pay the occupaticnal tax, amount
jig to 500 in Atlanta. in addition
TO the sales tax. Mr.. Nandiver stat
ed. The new law repeats the occu-
pational tax law. and is y saving TO
tho dealers Jas they can pass the
sales tax on to their customers, the
commissioner declared.
Major C. E. McGregor, state pen
sion commissioner. issued a vigorous
statement on the tobacco tax contro-
versy Thursday, declaring the tax
law was enacted to carry out the
pteCge of the Demo cratic party to
the soldiers and widows Of the Con-
fcderacy. and its defeat would work
a great hardship upon the aged pen
siorers.
Letter to 0rdjila ripS
Major McGregor has sent out the
following letter to the ordinaries Of
all counties in Georgia:
THE promise of the state Demo
cratic party, made to the Confed-
crate veterans and their widows, in
the platform adopted at the Macon
convention in 1922. having been
enacted into a statutory law, known
as house bill No. 227, putting a tax
of 10 per cent on cigars and cigar
rettes, and said act having been
made effective through an enabling
act passed at the extra session. this
department was counting On a suf-
ficient revenue from that source 10
enable it to pay 5000 0 each pen
sioner for 1924, instead of $10c as
provided in the general appropria-
ton bill. But few dealers in cigars
and cigarettes in Atlanta, through
their local representatives. Messrs.
Dorsey, Brewster. Howell < Hey
man, have enjoined the state,
through the commissioner of reve-
nue.. from collecting such tax.
Should the courts sustain their
contentious, this department. will be