Evening star., 1939-01-31
California Use Tax
Law, Model for D. e.,
Validated in Court
Supreme Tribunal
Gives Decisions
In Three Cases

The California use tax, model
Tor the levy included in the proposed
tax program for the District as a
companion to per cent sales tax
today stood with the approval of
the Supreme Court on the basis of
three cases decided yesterday.
The court held constitutional the
1885 law as applied to articles pur-
chased outside the State and brought
Into California by a corporation do
Ing an interstate business in de-
Gliding cases brought by the Southern
Pacific Co. and the Pacific Tele-
phone & Telegraph Co. In the
third instance it upheld the act as
-Applied to articles shipped into the
State for sale by the Felt & Tar
rant Manufacturing Co. of Illinois.
The rail and phone companies de-
clared the law violated the COM
merce clause and the fourteenth
amendment; the Illinois concern did
not question the right of the State
to collect the tax from the user, but
sought to bar the State from using
>. The primary purpose of the tax is
70 discourage purchases outside of
e State to avoid sales tax levied
tn that jurisdiction.
Validity Established.
Colin F.. STAN, chief of staff of
the Joint Congressional Committee
on Internal Revenue Taxation, said
that the Supreme Court had firmly
established constitutionality of the
tax recommended here.
While the use tax has been sug-
gested for the District, officials still
are in the dark as to the nature of
-the machinery that would be set up
to insure its collection
Justice Reed delivered the opinions
IN the rail and phone cases and
Justice McReynolds in the other. No
dlssents were announced.
In another decision yesterday on
which the justices were sharply
divided, the court ruled that the
Washlngtonian Publishing Co., Inc
had right to prosecute a copyright
infringement suit against Drew
Pearson and Robert S. Allen, news
paper columnistS, and Van Rees
Press, Inc, of New York.
Three Justices Dissent.
In dissenting opinion, in which
ne was joined by Justices Reed and
Roberts, Justice Black said that the
decision "emasculates" the statutory
provisions of the copyright law de
signed-for over a century and
haf-to protect the public"
The decision overruled the find
1ngs OF the United States Court of
Appeals for the District which had
y reversed the lower court.
The litigation grew out of the
contention that the two writer's had
included in their book, More Merry
Go-Round," published in August.
1882, material substantially iden-
tlcal' with an article printed eight
months earlier in a magazine, the
Washlngtonian, published by the
complaining concern.
The defense contended that the
Washington had lost the right to
sue by waiting IA months after pub
= llcation before depositing copies of
the magazine in the United States
Copyright Office, declaring that this
did not conform to the require
ment that such action be taken
promptly" after publication.
Court Rejected View.
The lower court refused to accept
this view, and directed the court
auditor to ascertain the amount of
damages accruing to the plaintiff.
The appellate court then held
that the terms of the law had not
been complied with.
4 The Supreme Court also upheld
yesterday New Hampshire statute
which forbids truck drivers on con-
tract or common carriers to work
more than II hours consecutively,
and provides for eight hours rest
after tour of duty of that length.
A second decision on highway car
riers upheld the Georgia graduated
tax on trucks and trailers.
Other Decisions.
Other decisions were:
UNFOLDING right of Bituminous
Coal Commission to disclose cost
data submitted by 10 coal companies.
Upholding Federal Tobacco In
Gpection Act of 1885.
The court agreed to pass on
North Dakota law which prohibits
operation of motion picture thea
tiers owned by film distributors.
Paramount Pictures, Inc, of New
York and subsidiaries appealed
from a Federal courts dismissal of
a suit for an injunction against
~the law
ArIinnfon Moforisf