For the privilege of engaging in business in the District during any fiscal year after June 30, 1938, each person so engaged shall pay to the Collector of Taxes a tax measured upon gross receipts in excess of $2,000, derived from such business for the calendar year immediately preceding as follows:

That with respect to dealers in goods, wares, and merchandise, where the spread or difference between the cost of goods sold and the sale price does not exceed 3 percent of the cost of the goods sold, one-tenth of 1 percent of such dealers' gross receipts; where such spread of difference exceeds 3 percent but does not exceed 6 percent, two-tenths of 1 percent of such dealers' gross receipts; and where such spread or difference exceeds 6 percent but does not exceed 9 percent, three-tenths of 1 percent of such dealers' gross receipts; and where such spread or difference exceeds 9 percent, four-tenths of 1 percent of such dealers' gross receipts. The burden or proof is on the taxpayer and, if he fails the cost of goods, contrary, the spread or difference between the cost of goods, wares, and merchandise sold, the selling price will be presumed to be in excess of 9 percent of the cost of the goods, et cetera, sold.

National banks and all other incorporated banks and trust companies, street railroad, gas, electric lighting, and telephone companies, companies incorporated or otherwise, who guarantee the fidelity of any individuals, such as bonding companies, companies who furnish abstracts of title, savings banks, and building and loan associations which pay taxes under existing laws of the District upon gross receipts or gross earnings, and insurance companies which pay a tax upon

premiums, are exempt.

The taxes imposed are due on the 1st day of July and may be paid, without penalty in equal semi-annual installments in the months of October and April following. Any person engaging in or carrying on business without having a license to do so, or failing or refusing to file a sworn report as required, or complying with any rule or regulation of the Commissioners for the administration and enforcement of the provisions of the Act, is subject upon conviction thereof, to a fine of not more than $300 for each and every failure, refusal, or violation, and each and every day that such failure, refusal, or violation continues shall constitute a separate and distinct offense.

4. Investigation of Motor Vehicle Policies. Public Resolution No. 87, approved April 13, 1938, directs the Federal Trade Commission to investigate the policies employed by manufacturers in distributing motor vehicles, accessories, and parts, and the policies of dealers in selling motor vehicles at retail, as these policies affect the public interest. The investigation is to determine (1) the extent of concentration of control and of monopoly in the manufacturing, warehousing, distribution, and sale of automobiles, accessories, and parts, including methods and devices used by manufacturers for obtaining and maintaining their control or monopoly of such commodities, and the extent, if any, to which fraudulent, dishonest, unfair, and injurious methods are employed, and (2) the extent to which the anti-trust laws are being violated.

COMMERCIAL LAWS FORUM

THE FUNCTION OF COMPARATIVE LAW is to provide a standard by which we can judge the merit of our own laws. COMPARATIVE LAW SERIES, within its legitimate scope, contributes toward this end by reporting foreign laws in the field of commerce. The compilers of the SERIES follow, with lively curiosity, studies of foreign law generally appearing in its contemporaries, such as "The Soviet Concept of Law," contributed So the January Fordham Law Review by Vladimir Gsovski, of the Law Division of the Library of Congress, and "The French System of Administrative Law" by Stefan Riesenfeld in the April Boston University Law Review.

EVERYWHERE THERE IS THE SAME NEED for reflecting the laws of other peoples; witness, for example, a thoughtful study of execution in German civil procedure today by lans . Semon in the Buenos Aires Revista del Colegio de Abogados for March-April. "Irrevocable Letters of Credit in Modern Commerce: Some Practical Considerations," by Professor Philip W. Thayer of Harvard, appearing in the Canadian Bar Review (Ottawa) for February is an international view of this aspect of the laws of commerce, and should be consulted by lawyers and foreign traders alike.

IF YOU HAVE A SWEET TOOTH and a flair for statistics, you may be interested in a new release "Confectionery Production and Distribution, 1937" (Government Printing Office, Washington, D. C., S. No. 101, price 10 cents, also available from District Office of the Bureau of Foreign and Domestic Commerce in your city).

Trading Under The Laws Of Brazil and Trading Under The Laws of Canada are the titles of two full monographs just completed in the Division of Commercial Laws, by Henry P. Crawford and Joseph H. Barkmeier, respectively, and sent to press. Resides a comprehensive summary of the ordinary commercial laws of these countries, special consideration is given to business corporations and business taxes. The Canadian monograph is important in view of the extent of American interests in Canada; that on Brazil, in view of far-reaching changes in the structure of Brazilian laws in recent years.

ARGENTINA

FOREIGN LAW COMMENT

Commercial Law and Legal Notes*

Commercial Arbitration, Inter-American Commission. A meeting was held on April 25, 1938, by the Argentine Committee of the InterAmerican Commission on Commercial Arbitration to review the progress made during recent months and to formulate a program of future activities. This Committee was created as a result of resolutions adopted at the Montevideo Conference in 1933.

Industrial Property, Trade-Marks. A decree promulgated by the Ministry of Agriculture regulates the designation of business houses or industrial establishments with respect to the use of trade-marks in signs connected with Argentine products. In substance the decree enforces the provisions of Article V of Law 11,275 which forbids the use of words from living foreign languages in trade-marks. Words which may be used are those from the dead languages or the national language of Argentina. All labels or signs previously approved will be valid only until December 31, 1938. In this connection, an interesting article written by Dr. Alfredo Sena describes the confusion experienced in the frequent duplication of Argentine and foreign trade-marks. A great number of trade-marks have been refused registration, the author says, since the supreme court of Argentina rendered a judgment in favor of an American hosiery firm against an Argentine firm which had been using the same mark. In accordance with Article V of Law 11,275, prohibiting the use of modern foreign languages in trade-marks, the word "sun" for example, could not be used since it is an English word, nor can "sol" the direct translation of the English word, be employed. A word such as "Whitecross" can be used since it is an imaginary phrase and can be translated into "Cruz Blanca." In the latter case, therefore, both foreign and Argentine articles may be registered under the same trade-mark. Dr. Sena gives many other details of inconsistencies in the present law and urges that these handicaps to Argentine firms be removed through modification of the laws and the enactment of regulations governing such matters.

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Judicial Organization, Civil Courts. The annual report of the Argentine Civil Courts of Appeal reveals that there were 160,514 cases awaiting trial in the Civil Court of the City of Buenos Aires as of December 31, 1937. This number represents an increase of 10,000 over the previous year. The report also suggests the establishment of new courts as well as a simplification of procedure before these tribunals So that a larger number of cases can be expeditiously disposed of.

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Taxation, Income, Railroads. A suit was instituted by the Cia. General de Ferrocarril de la Provincia de Buenos Aires against the Government, claiming that the amount of the tax collected on the accrued interest on bank deposits on the company should be refunded in view of the fact that the tax law governing railroads expressly provides that such companies are free of all taxation. The court, From the Office of the American Commercial Attache, Buenos Aires.

in holding that these funds are subject to taxation, ordered the company to pay the tax together with all costs of the action.

of

Criminal Law, Larceny, Fraud. In a case involving the theft 40 radio receiving sets from an American company, the guilty party was indicted for larceny and fraud. In convicting the prisoner of larceny the court held that it was necessary to establish only the larceny, inasmuch, if there was fraud, there had been a merger of offenses. While the sets had been sold to various persons, it was held unnecessary to allege and prove fraud as the lesser crime had merged with the greater.

Customs Decision, Exceptions. A local textile manufacturer finding certain replacements to his equipment necessary, placed an order with a foreign firm. When the machinery arrived in Buenos Aires, the manufacturer declared it duty free under Act 11,588 which authorizes the exemption of customs duties on machinery and materials necessary for the local manufacture of certain classes of products. The custom house authorities refused to accept this declaration, pointing out that the machinery of the manufacturer was already installed and that replacements could not therefore be entered free of duty. The duties, in all, amounting to 23,000 pesos, were paid under protest and suit was entered immediately against the State to recover the amount paid, plus interest and costs. In the court of first instance, the attorney for the customhouse argued strongly to the effect that the act was not intended to apply to replacements of machinery already installed, but the court nevertheless held that in the case of materials destined for industrial establishments, such materials not being manufactured in Argentina, are entitled to enter duty free. In construing the act further, the court also indicated that the law applied with equal effect to replacements regardless of whether installation of machinery had already been made. The case was appealed but the verdict of the lower court was affirmed. The Supreme Court in ruling finally on the matter, declared that regardless of whether the machinery in question was destined for the establishment of a factory plant, or merely for the repair or upkeep of a plant already in use, or for the necessary elaboration of original material, whatever the purpose, customs duty was not to be assessed.

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Labor, Employer and Employee.

Act 11,728, designed to protect workmen from arbitrary dismissal, has in several instances worked a hardship on employers where recalcitrant employees have taken advantage of its provisions. In a case recently decided, it appears that the Argentine employer will be extended more consideration in the future. The facts of this case were as follows: Several employees requested two days' leave of absence in order that they might attend certain religious services. The employer granted leave for one day but refused the second day's leave because the nature and amount of his work demanded immediate attention. One of the employees, however, ignored the order of his employer and remained away for the two days, being immediately discharged upon his return. The discharged employee immediately instituted action against his employer, claiming 450 pesos plus interest and costs. After a lengthy

hearing it was finally definitely established that leave had been granted for one day and denied for the other. The court in ruling for the defendant held that the plaintiff had deliberately absented himself in defiance of instructions, thereby causing damage to the defendant's interests. The decision declared that no matter how worthy of respect the private wishes of an employee might be, the interests of the employer are paramount. This case has undoubtedly established a precedent in this class of dispute, where an employee has been refused leave and defies the order of his employer, but the ruling does not of course cover cases where employees are absent several days on some pretext without having previously obtained permission for such leave.

Commercial Arbitration, Submission of Disputes. A local salesman brought suit against his principal to collect certain commissions which he claimed had gone unpaid. Evidence was introduced to show that there had been a verbal agreement between the parties whereby the salesman was to have received 5 percent on all wholesale orders and & percent on sales to retailers and to the general public. The plaintiff had disregarded the possibility of wholesale sales and concentrated his efforts on selling to retailers in order to collect the larger commission. When the defendants learned that they owed the plaintiff several thousand pesos in commissions, computed at 8 percent, they discharged him, offering, however, to settle at 5 percent. The lower court dismissed the action in that there was no contract in writing between the parties and thereupon the plaintiff appealed his case. The court above held that since on one or two occasions the defendant had actually paid the plaintiff at the rate of 8 percent, this was sufficient evidence to indicate that an actual agreement between the parties did exist. The lower court was therefore directed to refer the dispute to an arbitral tribunal for settlement with the further observation that the award of the arbitrators would be entitled to final confirmation by a court of law.

Torts, Negligence, Elements of Damage. An action was brought against a common carrier by a passenger who had been seriously injured and otherwise disfigured in a collision. The plaintiff in alleging damage, set forth that the injuries had caused permanent scars which had greatly blemished his appearance and that his business had suffered as a result. He also offered testimony to show that he had lost two teeth in the collision, but later testified personally that he was little disturbed about the loss of teeth in that all men are subject to the loss of their teeth during lifetime. The court rendered verdict for the plaintiff, viewing the facial scars as the basis of damage and awarded only a few pesos for the loss of the teeth. The case was appealed by the defendant and the appelate court differed in part with the verdict reached by the court below. It was held that the scars did not really impair the physical well being of the plaintiff since the muscles of his face were not affected, he sufferea no pain, and could smile and otherwise control his facial expressions. The award for damages based upon the facial injuries was therefore dismissed, but the court assumed a more serious attitude concerning the loss of the teeth, ordering the defendant to pay the plaintiff 200 pesos per tooth, plus the costs of the action.