Gully v. Gulfport Loan & Brokerage Co

• Decision Date: 08 January 1934
• Docket Number: 30959
• Citation: 168 Miss. 449,151 So. 721
• Parties: GULLY, STATE TAX COLLECTOR, v. GULFPORT LOAN & BROKERAGE CO
• Court: Mississippi Supreme Court

151 So. 721

168 Miss. 449

GULLY, STATE TAX COLLECTOR, v. GULFPORT LOAN & BROKERAGE CO

No. 30959

Supreme Court of Mississippi

January 8, 1934

Division B

1 LICENSES.

Privilege taxes are construed strictly against taxing powers, and liberally in favor of citizens.

2. MERCANTILE AGENCIES.

Brokerage company investigating credit of persons applying for loans from certain company and not reporting on credit for any one other than loan company held, not subject to tax as "commercial agency" (Laws 1932, chapter 89, section 57).

HON. J L. TAYLOR, Special Judge.

APPEAL from circuit court of Harrison county HON. J. L. TAYLOR Special Judge.

Suit by J. B. Gully, State Tax Collector, against the Gulfport Loan & Brokerage Company. Judgment for defendant, and plaintiff appeals. Affirmed.

Affirmed.

Wadlington, Corban & Grant, of Biloxi, for appellant.

It is the contention of the appellant that the appellee is a commercial agent within the meaning of the privilege tax code. The facts clearly indicate that the appellee is a corporation engaged in the business of inquiring into the credit and financial standing of other persons engaged in business in this state.

The evidence, application, and contract when summarized and boiled down conclusively show that although the appellee may make the investigation for their own use (but it is not admitted that they do so) they, nevertheless, turn their findings over the Gulf Coast Industrial Loan Company, and the Gulf Coast Industrial Loan Company not only just files this report away, but it also, as shown by the evidence, reads said report and relies greatly on said report in its decision to accept or reject the loan. It is the appellant's contention that such procedure amounts to reporting, within the meaning of the statute.

J. C. Ross, of Gulfport, for appellee.

A commercial agency is a person, firm or corporation engaged in the business of collecting information as to the financial standing, ability and credit of persons engaged in business, and reporting on same to subscribers or customers applying and paying therefor.

State v. Morgan, 48 N.W. 314, 321, 2 S.D. 32; Eaton, Cole & Burnham Co. v. Avery, 83 N.Y. 31, 34, 38 Am. Rep. 389; Genesee Savings Bank v. Michigan Barge Co., 17 N.W. 790, 793, 52 Mich. 164; Zugalla v. International Mercantile Agency, 142 F. 927, 74 C. C. A. 97.

By reference to the charter of this corporation and referring to the contract entered into by and between the appellee here and the Gulf Coast Industrial Loan Company, it is certainly clear and unquestionable that appellee here was within its charter by entering into and executing the said contract and there is no provision in the charter authorizing the corporation to conduct a commercial agency or anything that might be construed as being a commercial agency.

It is the law unquestionably of Mississippi that "law imposing a privilege tax should be liberally construed in favor of the citizen sought to be assessed with tax, and no occupation will be taxed unless it clearly appears that it comes within the provisions of the law."

Board of Levy Commissioners v. Howze Mercantile Company, 116 So. 92; Miller v. I. C. R. R., 146 Miss. 422, 111 So. 558; Railway Company v. Clark, 95 Miss. 689, 29 So. 177; Ex rel. Collins, Atty. Gen. v. Grenada Cotton Company, 123 Miss. 191, 85 So. 137; Planter Lumber Co. v. Wells, 147 Miss. 279, 112 So. 9; Town of Utica v. State, ex rel. Rice, 148 So. 635.

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