Untitled Texas Attorney General Opinion ( 1942 )

OFFICE OF THE ATTORNEY GENERAL OF TEXAS AUSTIN Honorable VfilllamJ. Larnon Seoretarg of State Austin, Texas Dear Sir: Attention; Claud to z8aov8r additlondl dot, which had been n goes rsoelptr ala&&l 88 done In Inter-State Com- In favor or the plfilntlfis tlon ~sult brought by ,Che y In Cause no. 60266 and In the 98th Dietriot Court oi Travis ditlonal rranohi8e taxes paid undrr had b88n alrasesedon the bade o$ pt8 olalmed a8 belne derived from n Inter-Stats Ccsameroe. The plaintIf? the Southern Pins Lumbsr Compeny suit are member8 oi ~ths Teraa Btat8 Maauraoturera A88osli- tion. The Amooiatlon ha8 e8ked p8rmi88ion Of the Seoretiaryor State to allow on8 or their r8pre8enta- tiTf38to iuqmot the 18d&Sr 8hOst8 Or this oftie ?Or the plil'pO8e or ooaiplllllga li8t of the oorporatiozie rho are not memb8rs Oi the T8Xa8 State MalAuiaOtWlrer8 A8800:8- tlon and who paid, wlthout prote8t, th8 additional traa- Ohi, tax a8B8888d in 1938 on the ba8i8 d 100% Of th8ir @OS8 reOtlipt8being d8rired fiOlll bailin done in T8Xa8. 577 Honorable William J. Lmmoa, pago 2 Art. “tJZld8r 7089 O? th8 R8t188d Statute8 uhloh 8aJ8 in paft: 'aaid r8pOrt 8ha11 be d8emsd to b8 prlvlleged and not for llupeotlon by the general publlo', ato., would thi8 off100 hare ths authority t0 pumit iII8p6OtiOnOf the 18dgar aOOOIiIIt of the88 oorporatlon8?~ Art1010 7089 of th8 R8vi8ed Civil Statute8 oi T8xa8, 1925, a8 emended, and r8?U?8d to in your 18tt.r. r8ads a8 fOuOw8: Said report 8hill b8 demed to b8 privi- lag8d iid'& ror the iwpeotltm of Ohs general tiblio, but a bona rid8 8tOOkhOldu Oming 0llbpm 08lltP1s) Or more Ot th8 outrtlrrding 8to@k Of any OorporatiQ, B6J 8XS4lkin88uOh r8tUWl6 UpOn pZ88@QtatiUCl Of @?id8Qe8 Oi 8uOh Ownezrbip t0 th8 #*0?8krl of 8tat8. NO Oth8r 8X8min8tiOn, diSOlO8luO8, or ~80, 8hall b8 p8zrittad Of raid report8 8XOept illthe 0-88 Of 8QO jodloial pxOOQding8 hi uhlah the stat8 18 a gmrty or iIIa 8Idt by the state to OanOal th8 p8rrit or fOTf8lt th8 OhUt8r of 8uoh oorporation or to soueot penalties for a riola- tlon of the law8 of thi8 Btat8, or ror lnform8tlon of mhy offioer, Of this State ohargad wlth tha enforoar8nt Of it8 tiw8, Ineluding th8 @mptrOue@ Of Pub110 AOOOMt8, State Auditor and the dtata Tu h~unis8ioner. . . .* We hare oaretullp examined Chapter 3 of Title 122 of the R8vi8ed Civil Statute8 of T8%a8, and W8 hare be8n unable to find any statute whioh 8p8alfiO~iy make8 a ledger sheet aooount a pub110 reoord and open to the inspeotion of the general publlo. We are adrillsdby your Departmnt that tha ladgm sheet8 are used in International tabtilatlng machine8 and OOn- taln a reoapltuletlon, or at least refleot sum8 of the data, which IS 8hOwIIby the franOh tax report required to be ?il&i under Chapter 3 of aald.Title 122 of the Revised Civil Statutes of Texas. It will 8how a composite record o? data, dates, other material and pertinent lb?orm8tiOn used by your offtoe In making it8 oaloulation to 8how the amount of rran- oh.588tax due, the date8 of'any paym8ht theroot, the emOUllt, If any, paid under protest and auy 8.mountwhich might b8 baok aesessed by the Seoretary of State or knj fkmount which might be a88e6Ead in addition to the ainountOf tax a8 QalOtiatOd by the oorporatlon In Its franohlse tax report filed with th8 Seoretiaryor State. It will, ln a propox oa8o where tha Honorable William J. Lawson, paga 3 OOrpOratlOn ha8 bsoome dsllnqueat in the p~ment ai it8 iranOhi8a taxs8, 8how the date and the aat of th8 Ssoretary of State in forfsltlng the corporation*8 right to do businees in the State, In the manner 8pOOifiO~lp provided in Arti 7091 Of said Chapter f of Tit18 122, R.C.S. of Texas. We are oonpelled to the 00n0lu8i04 that th8 legirlatmr iutanded, by the 8naotr44t of Mtio~8 7089, 8UpZfA,t0 pl'8teJit the gNI8ral pub110 from b4Vlag 1100.88 to the rrauohise tax re ortr r4qoir8d to be filed dth the SaOretex~ of State iiy any boae8ti.o or foreign oar- paration, and in addition thereto that the 8oope of th8 atatuts would apply to any other x8OOxd8whioh rotlaot any data (IIinioraation takea from #aid fPMOhi84 tu It 18 evid8nt that the lsg%8lativ8 purpO44 14 ~%%ng that the report8 4hould b8 ritll4@d ?rw g844ra.lpub110 in8p4OtiOa ~48 @brie E. d44igmd to prermt persons from lnqulring into th8 iinanoial 4t8tu4 of a oorporation, poarfbly to it8 8ubarra44444t, and that i ruoh UI in4p8OtiM WI8 proh:b&tad in the tllt8r88tOf pub- lie polloy., We bellare that tha~ledgro 8hWt8 of laoh obrporat~on aoootmt ara autitlad to the 4am8 immuulty -'trora iIl8PaOtiOL To hold Otharvi84 would, w thialt,be authorleing that to be done lndlrwtlp rhloh 18 db8OtlY and ex&ewl.y forbidden by the obahut8. There 14 nothing to prevent a pemti, who la famil~u with the tax tat8, and rho i4 glva4 th8 total anion& Of the tax l4 804 4 ed by the Seomtarp of Stats, fran figuring baok to the oapital 4truatum of a aorporatlon, which 18 among the thing4 the 8t8tUte was designed to prevent. It Is olsar that under the faot4 pra46nttd by fou the pereon desiring to inapeot the ledge% sheet8 doe8 not purport to be a etoakholder cmnisg On4 per oant (1%) OX more of the oatetaudlng 4took Of aa~ oOrpOratiOnr Eeith8r do the tact8 8hoW that said applioant ooiueewith- in any or ths other 4p40iri.00x08 tlonr or the privilega rule 4nnounc4d in said Artiole 70 fi 9, 4upra. xt r&low, froiawhat wa hare 8ald, that lour qu88ti0IImU8t b8 4pQOif10a11y ansrerrd in th8 48$atfT8. ,zdiiLd 579