Show CORPORATION TAX CASE IS SOON TO BE ARGUED Point Is Whether Companies That Lease Their r Property Are Doing Business Washington Doe Dee 26 A 5 A corporation tax issue Involving tho the right o of tho the federal government so to collect hundreds of or thousands of oC dollars in taxes from which have ha thousands thousand of corporations leased their property will vill be argued arg in the United state supreme court January G. G The fue case according to an announcement announce announce- meat ment by General to toda to to- da day Is that of ot the tho t Haven Railroad company which sued uc the collector o of Internal l revenue at Philadelphia for collected col col- by the tire government so under tho the corporation tax law This corporation by tho the of ot the legislature of ot 1 vania anla leased it its property to the ho Phil Phil- n edelphia Heading Heading- Railway company compau at an annual rental of The Time supreme court has held that tho the corporation tax Is Imposed upon tho the doing of oC corporate business and the tho th point Involved ol in this case cac Is whether corporations which have thus leased their thell property really are arc doing busi busl- ness I In the brief filed with tho time supreme i court Solicitor General says t-ays That the time shareholders of tho the Mine Mine- I ill I-ill company are enjoying an any advantages advantages there that constitutes a doInG doIng do Ing leg of oC busIness busIness' within the tIme meaning of or time the statute Is found when hen wo consider con con- shier sider that althou although h tho the Rca Reading company com corn all til the tho taxes on tho the flan pany raYS pays property prop prop- crt city erty leased and on the tho business done over 01 the load road yet Yot the corn com puny parry i Is paying about to yearly carl In taxes for tor time the privilege o of maintaining It Its corporation existence This Is eminently a practical ago age and wo we must r recognize cog things as the they are If It a lot of shareholders are arc willing will In ing to pay nay a l year ear In taxes rather than surrender the corporate franchise we wc tea ma may well weil conclude that the corporation must be bo doln doing something some some- timing thinK or else elso tho they would woul quickly quick dissolve dis lIs- us- us solve and save that largo large sum fum In taxes Counsel for tor the railroad company compan den deny the contentions l of oC tho the ern govern ment and maintain that the thc company compan Is sub substantially a landlord receiving Income from property an and not from business and tho the corporation act taxes only tho latter hatter To apply the act to time the corporation It is 18 ar argued u would beto bo be boto boto to make tho the tax an Income tax tax tax-a a direct tax tax which must be apportioned amon among the thc states according to representation Congress Cong knew know continues tho the brief for tOr the company that It could not Impose a tax upon property anti and that tha time the tax act net would be sustained as constitutional con con- If ir at fit all all on only I If It imposed im un- posed an excise tax with the respect to o tho the doing of or business The government lost the case in the tho lower courts |