Safeway Stores, Inc. v. Sheppard

McCLENDON, Chief Justice.

This suit involves the validity and construction of the Chain Store Tax Act, Chap. 400, Acts 44 Leg., 1st C.S.; Vernon’s Texas Penal Code 1936, Art. lllld, §§ 1-11, as applied to subsidiary corporations; that is, corporations the majority of each of whose capital stock' is owned by another corporation or individual. The tax involved is for the year 1940.

The trial was to the court upon agreed facts, substantially stated as follows:

The' plaintiff, Safeway Stores, Inc., of Texas, a Texas corporation, owned and operated 167 retail grocery stores in Texas. Western States…