Harlan F. Stone

“ The Supreme Court of West Virginia appears not to have construed this section, and we are without the benefit of any legislative history of the statute indicating that it has any purpose or meaning other than that suggested by its words. We are not here concerned with the question whether a state, by a statute appropriately framed, may lay a tax on income derived from sources within it, or whether the solicitation of the contracts may be taxed. ”

“ Section 2- (h) taxes the gross receipts of every person engaging within the state in any business not otherwise specifically taxed, and § 2- (i) levies upon 'every person engaging * * * within this state in the business of collecting incomes from the use of real or personal property' a tax of one per cent. 'of the gross income of any such activity'.
Appellee is engaged in the business of distributing motion picture films for exhibition in theatres in various states, including West Virginia. ”

“ Theatre owners or managers in West Virginia sign written applications in the form of offers for license contracts permitting the exhibition in West Virginia of such films as they desire to show there. The signed applications are transmitted to appellee's New York office, where it accepts or rejects them. When they are accepted, appellee signs a written acceptance attached to the application and returns the executed contract to the exhibitor. The subsequent course of business between appellee and the West Virginia exhibitor conforms to the terms of the contract. ”