.( w.
)
KAJiiOADa.
VASLY CAPITAL JOURNAL, SALEM. OSUGOV. MONDAY, MAT 1. 1911.
W1 Wil Wi SMI MW' y M
I
OREGOII SUPREME COURT DECISIONS
Full Text Published by Courtesy of F. A. Turner, Reporter of the
Supreme Court.
AVil
jTiirsliuIl-Wolls Hard ware To, t,
C ountjr of Jlultnonmli, et nl, Mult
jiomali County.
Marshall-Wells ' Hardware Com
pany, a corporation, appellant, v.
County of Multnomah and R. L. Stev
ens, sheriff of Bald county, respon
dents. Appeal from the circuit court
for Multnomah county. The Hon. W.
K. Gatens, judge. Argued and sub
mitted April 12, 1911. W. M. Gregory
(and A. C. Emmons, on brief) for ap
pellant. S. B. Huston, for respon
dents. Eakin, C. J. Affirmed.
Eakln, C. J.: This Js a suit to en
join the collection of a tax levied by
defendant county upon the personal
property of plaintiff.
Plaintiff was Incorporated under
the laws of New Jersey, and has its
principal office In that state but Its
principal place of business Is lnDu
lutli, Minnesota. There Is nothing
In the record, other than In the
name Itself, to disclose the particu
lar business in which plaintiff is en
gaged. But it does appear that since
the year 1903 It has conducted a
branch business In Portland, Mult
nomah county, Oregon, In charge of
Jay Smith as manager, carrying a
large stock of goods, which In 1906
was of the value of $350,000, and ac
counts accruing from sales through
the Portland branch in the sum of
$225,000, sales having been made In
Oregon, California, Washington,
Alaska, British Columbia and the
Hawaiian Islands by traveling sales
men and by mall orders. More than
half of these accounts were owing by
residents of Oregon. If goods sold or
ordered were not In the Portland
stock, the manager ordered the same
from the Duluth bouse. About 25
per cent of the goods sold by the
Portland house were shipped direct
to the purchaser by the Duluth
house without passing through the
Portland house, but the account of
all sales made by the Portland house
were kept only by It. The goods car
ried In stock by the latter house
were ordered from the Duluth house,
and If it did not have them In stock
It ordered them from the factories to
be shipped directly to the Portland
house, except that purchases were
made by the Portland manager of
such goods as are manufactured on
this coast or handled here by repre
sentatives of the factories. The man-1
ager also extends all credit given to
customers except In cases where
credit in an unusual amount Is de-!
sired, in which case he refers the
matter to the Duluth house. The
Portland manager employes, pays
and discharges the traveling sales
men and sends them out, and the or
ders are sent usually to the Portland
house. If sent to the Duluth house
direct by the salesmen, the shipment
Is charged to the Portland house
and the account therefor carried on
Its books as part of the Portland
business. No special agreement was
made with the customers as to the
place of payment of the accounts, but
the Portland house receives the pay
ment for these sales and collects all
accounts incurred with It It retains
from $3,000 to $5,000 in the bank to
pay current expenses, and when
money Is collected from these ac
counts, It is deposited In the srenernl
fund, and remittances are made
when the surplus amounts to $5,000
or $10,000.
The contention of plaintiff is, that
no taxes are payable in Oregon upon
such accounts, for the reason that
plaintiff is not. a .resident or Inhabi
tant of the state of Oregon, and has
merely a branch office In Multnomah
county for the transaction of its busi
ness. Plaintiff relies exclusively for
such exemption from taxation. uDon
the rule that the situs of personal
property follows the person of the
owner. It concedes, however, that
for the purpose of taxation that rule
is modified by the statute "and deci
sions as to tangible personal proper
ty wheh Is taxable where It Is situat
ed, but contends that the rule still
operates as to intangible property
such as choses in action. Both the
text-writers and the courts refer to
this rule as a legal fiction by which
the situs of personal property Is pre
sumed to follow the domicile of the
owner, but that It has no application
in determining the situs of the prop
erty for the purpose of taxation; i
that the modification of the rule ap- j
plies to intangible as well as tangible
personal property. Many cases have
held that when bonds, notes or other 1
evidences of debt owned by a non- 1
resident are In the possession and
under the control of an agent for
the purpose of renewal, they are
within the power of the state where
the agent resides to subject them to
taxation.
i
By Sees. 3551 and 3553 L. L. L.
Oregon has made such choses In ac
tion the subject of taxation in this
state regardless of the domicile of
Electric Hose
If you watch' a man spraying his
lawn for about two minutes you can
tell whether he has confidence in the
hose or not.
If he keeps glancing from one end of it to
the other you can depend that he' getting
nervous and is watching for a wetting. Don 't
take chances when you can buy Electric
Hose and be absolutely sure of the highest
efficiency.
Electric hose will not burst, crack or
split. It's made of seamless seine twin
jackets and rubber tubes.
SALEM HARDWARE CO.
the owner. By the former section all
personal property situated or owned
within this state, except, such as Is
expressly exempted, shall be subject
to assessment and taxation. By the
latter section it is provided that per
sonal property shall be construed to
Include all things In action, money
on hand or on deposit, and all capi
tal invested therein, and debts due or
to become due from solvent debtors.
whether on account, contract, note.
mortgage or otherwise either within
or without the state. The decision in
Poppleton v. Yamhill county, 18 Or.
377 involved this question. In that
case the property was In Washington
and the owner domiciled in Oregon,
and it was held to have a situs in
Washington where the property was
In possession of an agent to be lent,
and that it was taxable there and
not in this state.
In Buck v. Beach, 208 U. S. 392, it
Is said that for the purpose of taxa
tion, It has long been held that per
sonal property may be separated
from the owner and he may be taxed
for it where the property Is, regard
less of the place of his domicile. To
the same effect is Monongahela Riv
er Consol C. & C. Co. v. Board of As
sessors, 115 La. 564. Metrooplltan
Life Insurance Co. v. New Orleans,
205 U. S. 395, a case under the Louis
iana statute is to the same effect,
where it is said, that cash and bills
receivable are, for the purpose of
taxation, to be taken into account
merely because they represent the
capital and are not to be omitted be
cause their owners happen to have a
domicile In another state. There is a
valuable note to the case u Buck v.
Beach, supra In 11 A & E. Ann. C.
739, In which many cases are collat
ed, citing with approval, among other
cases, Poppleton . Yamhill Co.,. su
pra. A case almost identical in facts
with the one before us Is Armour
Packing Co. v. Augusta, 113 Ga. 552,
In which the plaintiff was incorpor
ated under the laws of New Jersey
with a place of business in Augusta
Georgia, In charge of a manager to
whom it shipped meats to be sold,
and. the amounts received from sales
were remitted directly to the Ar
mour Packing Company at Kansas
City, Missouri, none of the money be
ing Invested In Augusta. The branch
at Augusta does business on credit
as well as for cash, and In January,
1900, it had upon its books, due upon
accounts for sale of meat, $6,000 and
the question was, whether the city of
Augusta had the power to levy a tax
thereon. In that case, as here, it was
conceded that tangible personal
property was taxable where it was
situated, and that its situs did not
follow the owner but it was contend
ed that the rule is otherwise as to
intangible property. The opinion
does not agree that this rule is uni
versal even as applied to that class
of property; that many courts have
held that negotiable instruments for
taxation have a situs without regard
to the residence of the owner, citing
several cases, and says that the rea
soning of these cases applies equally
to other Intangible property than ne
gotiable securities; that this fiction
has no application to matters of tax
ation in such a case as is presented
by this record; that to all intents and
purposes these notes and accounts
are part of the business being con
ducted in Augusta and represent a
part of the capital employed in 'the
business. That case fully sustains
the case of Armour Packing Co. v.
Savannah, 115 Ga. 140, which the
court was asked to review and over
rule. See also In re Jefferson, 35
Minn. 215; Billlnghurst v. SDlnk
county, 5 S. D. 84; People v. Trustees
of iVllage of Oglesburg, 48 N. Y. 390;
Walker v. Jack, 88 Fed. 576.
In the case before us the choses in
action were a part of the Oregon
business, arising from sales made
here and the only evidence concern
ng them was In the hands of the
Portland manager and were collecta
ble by him; and whether the debtor
Is in or out of the state, these debts
are a part of the capital of the Ore
gon business and were properly tax
able In Multnomah county.
The Judgment must be affirmed.
FIFTH WARD
LEAGUE HAS
GOOD MEETING
DISCTSSES THE WELL WATER
PROPOSITION, -THE COMMIS
SION FORM OP GOVERNMENT
AND SAMPLES A FINE LUNCH
PREPARED BY THE LADIES.
The Fifth Ward Improvement
League held an interesting meeting
Saturday night at the Highland
church. Many questions of general
and local Interest were discussed,
among which were the well water
proposition, and the commission form
of city government.
A part of the committee circulat
ing the initiative petitions for a well
system reported the sentiment prac
tically unanimous for the preposition
where the question has been consid
ered, and handed in their petitions
filled with names.
A committee was appointed to as
certain the feeling in other parts of
the city toward a commission form
of city government
At the close of the meeting the
ladles of the League served refresh
mnts of coffee and things good to eat
They were given a vote of thanks.
The league will meet again the first
Saturday In May.
MAY DAT CELEBRATED
AT WILLAMETTE
JVrs. oane-r- T
Send for
COOK'S
OOIC
FREE-
Read CarefuUp n the nderful K C Cook's Book.Mrs. Janet'
m McKende Hill, of Riutnn rvL-i,, cii
fame, tells every housewife how to become an expert cook how to prepare
such appetizing dishes the family will go simply wild over what youset
before tlietn. j
The K C Cook's Book is illustrated in 9 colors, contains 90 tested and
nrnv.n roirw ttiaf will fr,-j,.J . .
tiine'xi the few simple suggestions are followed. "
The K C Cook's Book has been prepared
at an expense of many thousands of dollars,
nnd if purchased at a store would easily cost
50 cents, yet we give it absolutely free as wa
wain you 10 Know exactly wnat is. C Uaklnjj
ruwuer is ana wuai it will ao tor you in
your own kitchen. You need this won-
fleriul cook it is ot vital Importance
10 every nousewue. '
How to set the
CooK's Book
Write your name and address
plainly on this coupon. At-
tacn the colored certificate
t , , . nr .
Ienclortlncte J" "-otk cans,
Isrti.i theCook iBooA sending both to us.
VKKU. You will be mluhtT Bind too
did. J aqua MI, c.
vaicai
It Is all right to give praise where
praise is due, but adjudging the dues
sometimes Is a quarrelsome thing.
The campus ot Willamette Uni
versity is filled with merrymaking
students today In their usual observ
ance of May day. The first of Mey
is a day which always Is looked for
ward to because In the minds ot the
students is means a big teed in the
morning, and another at noon, with
various other means .of entertain
ment mixed in between, anJ after
wards the University track team
meets that of Pacific University this
afternoon, and a hotly-contested
meet Is expected. Those who take
part in the event for W. U. are Cum
mlngs, Blackwell, Rader, Mills, West
ley, Lowe, Rowland, Blanchard, Roes,
Pfaft, McRae and Burdett.
The baseball team was deteatd at
Portland Saturday by a big score of
13 to 4 by the team the Multnomah
Athletic Club. There were numer
ous hits made off Mclntyre and many
errors by fielders.
IS
I X
JaquksX
Mho. Co,
Detit. 474
I Name
Adilmw Sy
lgVAN GUARANTY- .
&( :
!
JA(JUESMFaca 2a
What is cold in the head? No
thing bo worry about if you treat
it with Ely's Cream Balm. Neglect
ed, the cold may grow into catarrh,
and the air passages be so Inflamed
that you have to fight for every
breath. It is true that Ely's Cream
Balm masters catarrh promptly. But
you know the old saying about the
ounce of prevention. Therefore use
Cream Balm when the cold in the
head shows Itself. All druggists, 60c,
or mailed by Ely Bros., 56 Warrent
street ,New York.
DOWNWARD COURSES
Fast Being Realized by Salem
People
I Chamberlain's Stomach and Liver
I Tablets will clear the sour stomach,
J sweeten the breath and create a heal
,thy appetite. They promote the flow
ot gastric juice, thereby Inducing
good digestion. Sold by all dealers.
Long and fruitless has been Mr.
Bryan's search for "available Demo
cratic candidates," and he may have
to meet himself coming back on that
same road.
Try a Journal want ad.
o
TO CURE A COLD IJf 0E DAT
Take LAXATIVE BROMO Quinine
Tablets. Druggists refund money if
it falls to cure. E. W. Grove's signa
ture is on each box. Twenty-five
cents.
A little backache at first
Daily increasing till the back Is
lama and weak.
Urinary dlsordors quickly follow;
Diabetes and finally Bright's disease.
I This is the downward course nt
kidney ills.
Don't take this course. Salem
residents should profit by the fol
lowing experience.
Mrs. E. C. Hatton, Clay ft LUle
Sts., Dallas, Ore., says: "In 1907 I
publicly endorsed Doan's Kidney
Pills and I can now confirm that
statement. Thl remedy was used In
my family and it brought relielfrom
backache and other symptoms of
kidney trpuble."
For sale by all dealers. Price 60
oents, Foster-Milburn Co., Buffalo,
New York, sole agents for the Uni
ted States.
Remember the name Doan's
and take no other.
I
I
.EXTENDED
for
A
FEW
DAYS
THE
GTS) ip a np
La
j3
AT THE
OREGON SHOE CO.
We have determined to close out the balance of our present choice stock of high-grade shoes at even
GREATER SACRIFICE PRICES
Your last chance to secure quality shoes for Spring and Summer wear at a cost never before experienced in the Valley
Come in Tommorrow and be Convinced
OREGON
SHOE
COo
Shoe Repairing
A Specialty
Men's soles sewed on 75c
Women's soles sewed 50c
ft
175 N. Commercial Street
-HI-' i-iy-t-'-'- Tlj "'-r