Southern Grain & Provision Co v. Maxwell, 261.

• Decision Date: 05 November 1930
• Docket Number: No. 261.,261.
• Citation: 155 S.E. 557
• Court: North Carolina Supreme Court
• Parties: SOUTHERN GRAIN & PROVISION CO. v. MAXWELL, Revenue Com'r.

155 S.E. 557

(199 N.C. 661)

SOUTHERN GRAIN & PROVISION CO.

v.MAXWELL, Revenue Com'r.

No. 261.

Supreme Court of North Carolina.

Nov. 5, 1930.

Appeal from Superior Court, Wake County; Johnson, Special Judge.

Action by the Southern Grain & Provision Company against Allen J. Maxwell, Commissioner of Revenue. Judgment for defendant, and plaintiff appeals.

Affirmed.

The plaintiff is a North Carolina corporation, operating under the laws of said state and engaged in the business of buying and selling grain, hay, meat, and all kinds and classes of groceries at wholesale, and in the course of its business buys and sells meat and packing house products, both fresh and cured. The defendant, as commissioner of revenue for said state, pursuant to chapter 345, section 135, Public Laws of 1929, demanded of plaintiff a license or privilege tax of $150. The plaintiff alleged that in connection with its business it had installed a refrigerating chamber in which the fresh meat products handled by it are stored. The plaintiff permits no other person to store any meats or property in said refrigerating room. The following facts were agreed to by the parties, to wit: "In addition to the facts set out in the pleadings, the following additional facts are agreed upon in this cause: There are approximately 400 wholesale grocers in the State of North Carolina. Practically all, if not all, of such wholesale grocers are wholesale dealers in meat-packing-house products, buying and selling canned goods of all sorts which are products of various and sundry meat-packing houses. Very few, if any, of said wholesale grocers either own, lease, rent or operate a cold-storage warehouse in connection with such wholesale business. Practically no wholesale dealers in meat-packing-house products either own, lease, rent or operate a cold storage warehouse in connection with such wholesale business unless such dealer handles fresh meats, the product of meat-packing houses. Cold-storage houses are not necessary to preserving canned goods, the products of meatpacking houses. Cold-storage houses are necessary in handling fresh meats, the product of meat-packing houses. Only such wholesale grocers or dealers who operate in connection with their wholesale business a cold-storage warehouse or a cold-storage chamber of some character, are required to pay the license tax imposed by section 135 of Schedule B of Chapter 345 of the Public Laws of 1929, commonly called the Revenue Act."

Upon the foregoing facts and other facts appearing in the pleadings, the trial judge decreed that section 135, chapter 345, Laws of 1929, was valid and constitutional and contained "a proper and fair classification" for the purposes of the tax therein imposed.

From said judgment plaintiff appealed.

Connor & Hill, of Wilson, for appellant.

Dennis G. Brummitt, Atty. Gen., and Frank Nash, Asst. Atty. Gen., for appellee.

BROGDEN, J.

The facts disclose that the plaintiff operates a cold storage chamber, warehouse, or refrigerating room in which to preserve fresh meats owned and sold by him. Wholesale grocers or dealers in meat products are not liable for the tax unless they operate in connection with their wholesale business a cold storage warehouse or...