T he A
u t o m a t ic
A ge
17
JESSE M O R G E N T H A U TELLS OF
W O R K A G A IN S T O B N O X IO U S
C A L IF O R N IA L A W
“ E n closed find cu rren cy am ounting
to one dollar, in paym en t f o r one
y ear’s subscription to y ou r publica
tion.
In regard to y ou r article, “ O kla
h om a’s N ew T a x on V en din g M a
chines,” you are herew ith handed a
co p y o f a decision o f the Supreme
C ourt o f the State o f C alifornia, ren
dered ov er ten years ago.
T h e soundness o f the C ou rt’s con
tention that vending m achines are
m erely autom atic salesm en, and a
m eans fo r selling m erchandise, and
that it is
u nreasonable
to tax a
m ethod o f selling, is w ith g ood fo u n
dation.
T h e w riter person ally presented
the argum ent at the tim e.
Subse
quently, the same argum ent w as ad
vanced in the C ity o f Pittsburgh,
w here it w as attem pted to tax ma
chines,
and
the
C ity
S olicitor
p rom p tly quit, a g reein g th at the law
w ould n ot hold.
T he th in g to do is f o r the trade
to g et togeth er, and en gage proper
counsel in O klahom a and te s t the
la w ; citin g the C alifornia decision
itself, and we ou gh t to gain a suc
cessfu l verdict.
Y ou m igh t appoint y ou rself to a ct
fo r the trade. A scerta in the cost o f
attorneys fee in the m a tter; m ake it a
retainer f o r ta k in g the case and an
additional fee fo r su ccessfu l issue.
Th en ask the trade to subscribe their
prop er share to the end.
P ardon f o r saying so, but your
argum ent ab ou t “ con fisca tory ” w ill be
defeated. T h e argum ent above, will
win.
JE SSE M O R G E N T H A U ,
M em ber C. L. L. A.
P. S.— A
fav orable v erd ict in
O klahom a, w ill mean fa v ora b le ver-
.dicts in the oth er States.
© International Arcade Museum
The Decision
(1) M unicipal C orporation — O rdi
nance o f C ity and C ou n ty o f San
F ran cisco— License on N ickel-in -th e-
S lot M achines— N ature o f O rdinance
— R evenue Purposes.— A n ordinance
o f th e city and cou n ty o f San F ran
cisco im posin g a license fee or tax
o f $2 p er annum u pon every person
ow n in g or h avin g con trol o f any m a
chine w hich delivers articles o f m er
chandise in sm all quantities upon the
deposit o f a piece o f m on ey in such
m achine, and providin g th at the
license shall be valid on ly fo r the use
o f the m achine at a particular place
o f business or
location , and th at
every m achine so licensed m ust have
conspicuou sly attached to it a m etallic
ta g sh ow in g the num ber and tim e fo r
w hich issued, is n ot an ordinance en
acted in the attem pted exercise o f the
police pow er o f regulation, but is one
fo r revenue purposes only.
(2)
ID .— ID .— ID .— T a x
U pon
V en dors o f Sm all A rticles o f M er
chandise — D iscrim in atory O rdinance
— T ax U pon M ode o f Sale and D e
livery.— T he im position o f such a
tax upon the vendors o f sm all articles
o f m erchandise w ho use such m a
chines in m aking their sales and de
liveries w ith ou t any referen ce w hat
ever to the am ount o f business done,
and exem pting those vendors w ho sell
and deliver the same articles o f m er
chandise in other w ays, is discrim ina
tory, and, th erefore, invalid.
(3) ID .— License T axes fo r R eve
nue P u rposes— E ssentials — M ethods
o f Sales and D eliveries— Im proper
Basis o f Classification.— It is elem en
tary that there m ust be equality and
u n iform ity
in the
im position o f
license taxes f o r revenue purposes,
and any classification providin g d if
feren t charges fo r those engaged in
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