Page v. Regents of University System of Georgia
93 F.2d 887
5th Cir.
1937
Check Treatment

*1 period taxable particular in some rights makes voting might be entitled voting stock.” case, there- preferred in this stock in the stands fore, stipulation under the period taxing position during the same by-laws a certain by its if it were limited more. and to no preference dividend aas Ap- Board of Tax decision of reversed, is remanded

peals is the case proceedings for further Board opinion. with this inconsistent

PAGE, Revenue, of Internal Collector v. OF UNIVERSITY REGENTS SYS- TEM OF GEORGIA.

No. 8466. Appeals, Fifth

Circuit Court of Circuit. Dec. 1937. *2 HUTCHESON, Judge, Circuit dissent-

ing. Asst, Atty. Gen., Fox, Sp. Carlton Eustace, Atty., Department of and M. H. C., Washington, and Law- D. Justice, of Atty., Camp, M. Niel U. rence S. S. Andrews, Atty., At- Asst. U. both of S. lanta, Ga., appellant. over; injunction is an avail- Smith, Kilpatrick, M. E. Marion remedy prevent its This ap- able collection. Atlanta, Ga., for Yeomans, M. all of J. court in former decision held that pellee. not collected as a but under HUTCHESON, SIBLEY, g,nd Before *3 buyers peculiar a contract with the ticket HOLMES, Judges. Circuit whereby complainants were entitled the ownership prove if to of it could assert SIBLEY, Judge. Circuit was held that no tax is collectible. It also Regents of The Board of the circumstances, peculiar in- that under the System corporation of and the mentioned, injunction cluding just styled University System holdings remedy. available These was an against sought injunction an W. Georgia, as the of the case. are adhered to law revenue, to internal Page, E. as collector of question next is whether great stop federal his seizure under warrants for constitutionally the tax collectible is foot- intercollegiate taxes on admissions to Regents with view of connection of the October, September and during ball to It be well government. will 1934, moneys Regents claim. which the incidence, and examine the tax and first its federal settling A declaratory decree Regents. the status the Board of nontaxability un- held of athletic contests by imposed The tax section is 500 authority Regents was also der 1926, 91, Act 44 the Revenue Stat. re- prayed. This court has heretofore by amended section 711 of the Revenue bill, dismissal of the and has or- versed a Act 47 Stat. U.S.C.A. §§ Regents v. dered it tried on its merits. 940-944, and is “a of 1 cent for each Collector, Cir., Page, 81 F.2d 577. The 10 cents or fraction thereof of the amount allegations District has found the Court * * * paid any place for admission to proven, final bill and decreed a paid to by person paying be appeal junction. This followed. cents admission.” Admissions less than 41 pending Exempted “any Page resigned admis- as collector are not taxed. appeal, proceeds this afterwards died. Marion all the of which ex- sions clusively inure religious, On al H. Allen succeeded in office. to the benefit of educa- him carry tional, institutions”; legations that he about to out but the was or charitable Page begun, exemption Allen to had was cited “shall be allowed in the case what not why any game he not be made ex- show cause should of admissions to athletic or wholly party proceeds office under U. inure as successor in hibition of which any partly college did controvert or S.C.A. 780. Allen or to the benefit § fact, any academy objected university allegations but (including personal military against Page was a naval the action or forces of United against all States).” one and could not thus be made one The tax is thus collectible on against and in of which the office collector effect or exhibitions to, university gets The statute referred all or college United States. or quoted, provides: so far as material to be proceeds, game, whether it be football action, “Where, exhibition; pendency meet, an during other athletic a track or by suit, proceeding brought or intercollegiate or contest or one against * * * States mures; participated an officer of United and whether intra present to relating applied or future by As hired athletes. students or duties, discharge * * * such officer university, of his official be the tax to a State office, it shall simply intercollegiate ceases to hold such on viewed not as one * * * competent for the wheth court of athletic games but on forms * * * of first er one instance exceeding which admission exhibitions to tribunal, appellate permit expressed the cause charged. Congress cents by single and maintained special purpose continued out case is within the successor.” This While contests for taxation. enlarging us, words of the Without statute. the tax before the occasion of were history, by purpose apply its we it or applied to a the tax legitimacy party. made a dering university the successor wider field discus- involves a sion. reopen appellant desires to purchasers questions whether the holders of the is laid on the The tax admissions, duty responsi upon, having collected it from distrained tax, deny purchasers accounting for bility ticket collecting validity pay put selling of the tax when called on to admissions. on those agencies by long period Where the State and was furnished church sellers, privately thus an immediate seminaries and endowed and imposed operated direct burden the federal colleges; but this due government. But, ig this the burden lack of funds and not to failure nored, patrons recognize highly that laid to are also leaders educated State, felt necessary athletic exhibition is de- the success of patronage. mocracy. It Washington the tax tends to deter George himself reduc be absorbed urged sought found present price ing the of admission. In the Virginia, and Thomas case of a basis pushed the football tickets were sold on fruition in the idea to Jefferson this, and 14 for Virginia’s University. for admission cents Even before $1.36 very probable Georgians total seems pressing It matter. The $1.50. *4 will price 54, pro- was the was Georgia 1777, the art. $1.50 Constitution pay, to and that the accustomed and shall in each vided: “Schools be erected collectible, be ab 14-cent' was to county, general supported at the ex- by price.1 in The State, sorbed pense a reduction legislature as the shall directly quite tax affects the point acts of hereafter the out.” Numerous recipient has when the to its bond interest period counties establishing towns and it, pay v. a federal tax on Weston provisions and acade- contain for schools Charleston, 481; 449, 2 or Pet. 7 L.Ed. by inmies them. of 1784the When act salary, judge state tax on his a federal Washington counties of and Franklin were Day, 113, out, 40,000 Collector v. 11 Wall. 20 L.Ed. laid of land of the first acres 122; superintendent a State waterworks apart or quality endowment were set “for the salary, tax on a federal his Brush v. Com seminary learning.” aof or missioner, 352, 495, 300 U.S. 57 81 Digest, p. following S.Ct. Watkins’ 293. The 691, 1785, L.Ed. question ing by 108 A.L.R. 1428. is a year, University When it was government of the federal burden property created and its vested in a cor- governmental opera taxation the poration styled “The Trustees of the Uni- States, versa, tions of the vice or not versity Georgia,” government its the amount of the burden but its exist real (subject Legislature) was committed possibilities ence and its that condemn the to the trustees and a board of visitors. The this,special tax. This is so in of con field trustees, appointed by Governor, with power stitutional law because “the to tax changes 1931, various continued till when power destroy,” involves the in that the they by were succeeded the Board of power amount of tax if the be once ad Regents, complainants preamble The here. legisla mitted must ture; left to the taxing act, p. 299, Digest, to is an unanswerable ancient Watkins’ fully explained in McCulloch argument higher 316, Maryland, 4 v. Whether Wheat. 4 L.Ed. 579. education as a function of democratic peculiar stringent this rule part: ernment. It reads “As it is the system govern our constitutional of double happiness distinguishing govern- of free depends applied ment is to be case ment that civil order should be the result upon function whether the burdened necessity, of choice and not and the com- really tax is some business or or function people mon wishes of the becomes proprietary enterprise land, public prosperity laws their customarily normally pri matter very depends much even existence operation vate and within the usual field of suitably forming the minds morals of * * * taxation. See South Carolina United v. an influence citizens This is their States, 437, 110, 199 U.S. 26 S.Ct. 50 L.Ed. beyond punishments, of laws sketch 737; 261, Eddy 4 Ann.Cas. Metcalf & v. religion and can be claimed and education. Mitchell, 514, 172, U.S. S.Ct. 70 L. among It should therefore 384; Commissioner, supra. Ed. Brush v. objects wish well first of prosperity who those (cid:127) encourage national There is a faint contention made here religion and support principles of higher legitimate not a function, morality, early place youth though under common society, in- necessary forming hand to be schools admitted they may be democracy. molded to love the success of a It is struction true good Sending order. them historically higher of virtue education in America Congress general exemption because was made The stitutions the tax of fall would thus knew burden admissions which inure to the benefit religious, charitable, and educational institutions. “So its as the long educa- board does not exercise abroad tion will not answer and will other countries * * * powers arbitrarily, purposes capriciously purpose so great Legis- as to thwart the always cause of so be the system university upon principles establishing lature in foreign attachments that admissible,” The etc. board itself must determine policy it necessary what is for the usefulness Georgia as a seat many system, govern Uni- parts of and thus will learning with branches versity Georgia branches. several has remained imbedded powers compre- granted are broad and and the statutes of Constitutions hensive, and, subject Georgia thus to the exercise of ever The State since. discretion, proper regents are this wise and came University the Federal Union into except by gov- untrammeled such restraints part of its declared as a directly expressed, of law or neces- as are activity. ernmental sarily implied.” “It be conceded Regents created the act equitable the State is the and beneficial depart- reorganizing the executive property owner now vested in the p. 1931, Acts* Sec- ments of the State. tion 7.. University System, up hereby set p. “There is is: corporation by that name is the that holder the Slate and constituted *5 only legal Re- of title.” That the known of to be Government they gents public are and the funds officers University Regents the of ‘Board of the public moneys, specifically raise are those raised such as are here declared and System Georgia.’ cor- The name of the of by associations athletic poration and exist- heretofore established involved, emphatically style, of name ‘Trustees under the and Legislature in the act of University Georgia’ the is of be and the same 1935, p. 1935. Acts 171. There can hereby changed ‘Regents of the Uni- ” Regents doubt that the Board of and the System versity Georgia.’ 48, of Section they employ, instrumentalities which cluding in- p. University “The government 21: of the associations, the athletic are * * * Georgia, of and of its all branches agencies ernmental of education. By is Regents.” in a Board of vested 21, 50, p. composed question section board is of last The and most doubtful is persons appointed by the and and Governor whether athletic exhibitions for Senate, confirmed is charged admission is the Governor which be con- 51, 22, p. part ex officio a member. Section of sidered function 59, office, fixes university their term of section at so 24, p. pay. By 77, p. 31, their “The section be free of federal taxation. That expense of the Regents, Regents Board of 'at Board of have both the Uni- than that versity Technological of the institutions under at Athens and the control, separate ap- shall be met of a out Atlanta made School at propriation University’s enacted integral part for its an tion, of the maintenance func- support.” By they supervise and that authorize and 65, pp. sections 55 and is 23, 25, public for which admission exhibitions powers, rights, privileges, and program, admits charged as a of the former duties the Board of Trustees of catalogues of no formal doubt. University Georgia are vested in the at institutions set forth bulletins both provisions Regents. These very make it require- opportunities length the plain that the members of the Board At Athens ments education. Regents power are officers having female, students, required male are University System, govern and that years of such to take two mili- corporation styled Regents of the Uni- tary being recognized drill for males versity System Georgia cor- equivalent. teaching degree One includes poration intended to hold the title to its property and do its business. The relation curriculum, designed sports being in its qualify graduates to teach in the Regents corporation physi- High Schools but to direct the was considered in State of Geor- such schools. In cal education in both 210, 567, gia Regents, v. 179 Ga. 175 S.E. Department of head of expressions stitutions the opin- These 571. occur holds Physical Education the office dean Regents seen ion: "It thus that the instructors, faculty. men in the Other University System Georgia dis- “coaches,” entity, also corporate by often called are members though controlled tinct faculty. The conduct athletic Regents designated government." which is as of the Board of a a qualifications of contest- contests and the state faculty regulated by approved bought rules funds. ants are by Anderson v. 181, Education, and are related scholastic Board N.D. 190 N.W. Damages standing. arising injuries for 807. The schedule contests in the year faculty gymnasium approved by each and on football field are not Regents. Their details are handled recoverable because the activities are a at program each institution an athletic associa- of the educational and so a composed faculty Spencer tion alumni and members function. v. School incorporated District, 357; 511, to facilitate such 121Or. 254 P. Mokovich improvement District, 446, business as the v. transactions School 177 Minn. 225 N. equipment. grounds An W. 292. athletic association was held wholly They exempt under control the Re- from taxation an educa because gents agents. chancellor tional Gymnastic institution in German As presi- University System Louisville, is himself 958, sociation v. W. Ky. 80 S. dent of the Athens. Athletic Association at Am.St.Rep. L.R.A. question Although The taxes here in were assessed long 287. the scholar for a associations, plead- period and the athlete, looked down ings of the collector that the associa- recurring insist this time we are idea that to the ancient separate body tions from the are to be considered neglected cannot he System, Regents position University but that while educating the mind. has been aban- is untenable and Public contests are not an abuse argument. doned in The tickets which physical they employ education. It is true gave face rise the tax show on their students, but they a few of the give University, sold were state that stimulus and life to the whole athletic en for Georgia terprise. “To make the team” ath liability contends that there is no spprt supreme letic is a incentive to careful *6 University collecting to the 14 but the effort; systematic and and to star it part charge cents as a of the Olympic is like is judgment crown. Great will admission and retain as such necessary prevent stimulus money tax is not collectible. The from publicity becoming great, too lest the is, like all admissions other funds of the athletic wagging dog tail be found associations, Auditor, by audited the State schools, prin mental culture in the but in ’ already specifi- and as cally stated claimed ciple public exhibition of the best in by Legislature the State’s as athletics is not different from the school highest itself in the act of 1935. The boyhood exhibitions of our or from the governmental authority has thus ratified speakerships honors and at commencements charge the use of the associations and colleges. of most games proper for admissions to the as func- University. tions of the The colleges contests between in ath superlative degree letics are of the Athletics a formal feature of edu public They exhibition. resemble the inter America, recent in aside cation is from collegiate depart debates of the oratorical military naval But exercises. the con ment; present public but the taste wel practice ception go at least to back comes the former far more enthusiastically Olympic Greeks. The and Isth ancient Baseball, basketball, tennis, than the latter. public mian were institutions de golf, boaDracing, field as well as athletics subject signed especially promote physical de football, are made the of intercol velopment, and their crowns were the contests, legiate popularity by but in far the sought most honors after. At Athens the greatest of these is football. But the record theater, by stadium was hard and both so, always discloses that this was not for public were institutions. Plato his Re greatly baseball overshadowed un football gymnastics names as the second in til after the World War. The writer can trilogy the The Germans educational activities. Dayyvas day remember when Field today high call their schools glory University. for athletes at the gymnasiums. In acquisition America the grounds charging school ath athletics is held to be a The admission proper purpose, educational to letic contests and does even exhibitions not alter Reig authorize condemnation their status, land. educational Education, though er v. Board of 287 Ill. a danger prostitu it adds 838; N.E. State ex rel. School District v. tion. It common for educational ex County, Chelan by Wash. 484. hibitions to P. be financed admission Apparatus may charges,’ for football basketball which have often been also may be conceded that for the It school. School revenue to the source of give perform Regents in- athletes to days hire older exhibitions tax pub- be ances in order to make would entertainments and Dramatic stances. able, enter English it would the State to by educa- lic debates tion, students In a commercial field. exhibitions by glee in musical educa- clubs tion, there is The income State’s own students are modern instances. audited, directly participate who in cool of ness few from all these at supreme ex under earnings go the institution. and self-control net University citement, teamwork, loyalty and and a athletic events. So is of pro appro- support by rewarding of them for faithfulness adequate has priations had never ficiency training. money, physical seek There is has had to in their of tax de- and the efforts also stimulated It is admitted that income. using not of all Between partment could students in athletics. charges. the students in the maintained but admission performers department, hiring education and mainly support These salaries, existed between cluding purchase about difference that most 'of the. Roman and the equipment, improvement of the Greek citizen and the It be admitted fields, they help gladiatorial must maintain shows. surpluses college foot infirmary; also has existed but there have been that there nominally through use of scholar practice turned fund ball a into the common ships repaid. things securing football intercollegiate loans but never or other abuse present players students. This far rather than contests furnish alumni has in greater due to enthusiastic of this income. The ad- has more been authorities, charges but it Regents mission than general authorized be no (and claimed corrected. There Legislature) to been activity, musical, athletic, student charge management made literary, recognized which is as exhibited in this record. patrons of the wholly used The program, educational and to they they support, games probably in its in their do not connect what nature hear, especially arrangement what reve- see and do, money by nue. Governments taxa- raise themselves does not tion, by licenses, selling change truth. There what the ultimate *7 may many problems have that with salable. A license be connected are also regulation issued as an aid institutions games to under that have led some undesirable, police may power, revenue, or reject them be as to aspects in both program is for the it is exercise a educational value in the ernmental function. An educational authorities. judgment admission ticket of the to an athletic exhibition an includes them government held as a of Where the State program, money incidentally educational be used uses them to useful and .a education, support is, income, for the federal it is not of such when source of State, to overrule authority judges issued like a under not un- officers nor for tax long-established money license. Under It raises their decision. from the purchaser ought to not purpose principles for a States United which other- admissions, will wise would call and the statute prohibit taxation. To university. apply or to tax it is an to to State legiti- interference be held not governmental mate financing. affirmed. Judgment Each stu- University dent at the and the School of HUTCHESON, Judge (dissent- charged Circuit Technology is at matriculation $10 as an helps ing). athletic fee which support the appeal cause I former this On the education and en- majority view that titles the from the privileges student to the dissented of the gymnasium per ticket the associations pools swimming 14-cent and ath- purchasers of grounds, admission letic to had collected admission to intercollegiate games, in hardly athletic events. It sup- would tickets to be admission, posed charged federally these fees the $1.36 could be addition to taxed, and that a though they collected as are for a ad- had not been seasonal its prevent lie University injunction would facilities, temporary mission then, thought I I summary collection. within words of the its statute. page Cir., 1 5 583. 81 F.2d now, surpassed, necessity think was collected as that the democratic the. taxes, furtherance, regard only that without to whether stitutions of the not schools, government higher 'should he or common but of education. it, ultimately inspired words, declared entitled to section His “Cultivated mind is 1543, U.S.C.A., guardian genius Democracy; forbade the issuance I injunction by virtue, guided restrain collection. while noblest attribute of man. It is tator and controlled its only therefore dissent from the conclusion of dic- appeal only majority opinion acknowledge, the former on this that free men case, desires,” law of and that in- security is the freedom are the junction remedy. University system is an available watchwords of the Texas, too, dissent, influence, from their through persuasive conclusion “any system the federal tax on admissions to ath- of the whole educational of that proceeds game letic exhibition the or State. partly wholly which inure of or the benefit difficulty, either, going I have no any college university,” may my expressed along with associates in their lawfully per- laid and collected from provision view that in, for instruction general sons admitted to practice of, and the athletics as a formal auspices conducted under the may justly feature athletic associations of the legitimate- regarded proper, and Tech; Georgia and of the ly provided public funds. for out of government right has My Ger- associates have referred moneys accounting collect- Gymnasia, Olympics, the man the Greek n edfrom ticket purchasers under the form might catalogue games, Roman to which case, receipt employed plain- in this England’s well be added the permanent in- tiff is therefore entitled to a the Thames. schools and the boat races on junction. They public contests have insisted that fully I views the ma subscribe and that not an abuse of advances, jority opinion fostering that the .colleges contests between in athletics are support the State of educa only superlative degree ex- tion, by establishment and maintenance hibition. With all of these fully notions I of State universities for in the agree, instruction greatest but with the I deference learning, higher branches of is not complete submit that is a sequitur non essential, legitimate, but an positions between these the and the conclusions republic particu I function in a like ours. majority (1) draw: staging That the larly subscribe to all that is said about the spectacles and conduct of the colorful distinguished part furthering this ideal which burst into bloom in stadiums all over took, Georgians early Georgia and America in which October and November of each year persistently sustained. I could and have func- otherwise, Georgian, for it was a university; hot do tion and are matters of collection from the *8 Lamar, who, by message2 (2) that, staging his if Mirabeau B. to the first Texas, their and conduct n Republic Congress governmental concern, having public in instrumental in attending was of an apart grants public person, enormous lands admissions tax of 14 set cents a is upon maintenance and establishment a direct burden for a “University In that applicable of the first class.” ernments that within as de- pointed out, eloquence cisions, message government with an he the United equalled require has seldom been and never which States not the athletic asso- * * * my leading policy lively deep “It will be and a It feels concern. is one ** * jarring lay involved, foundations for those no in which interests are political higher feelings moral for and mental and no acrimonious institutions are government excited; without which no for benefits culture are so universal its principles prosper, parties cordially democratic nor that all are in ad- united people preserve long vancing their liberties. it. * * * If admitted we desire to establish “It all that cultivated guardian republican government genius on a broad and mind Democra- permanent basis, duty cy, guided and it will become our while and controlled adopt comprehensive virtue, regu- and well the noblest attribute of man. It system lated of mental and moral cul- is the dictator free men ac- subject knowledge, only security Education in and ture. is a which n every especially every citizen, parent, and freedom desires.”

89o sidered, quite enterprises, to that from the which conduct the evident ciations fall, opens early purchasers time the football season until it in collect the for them from Thanksgiving, attending games. closes at with Bowl, post spectacles in season the Rose associates, apparently own My to their Bowl, Sugar Bowl, Orange the Cotton satisfaction, rationalized themselves have Bowl, presents galore, other bowls say into the frame of mind to believe and seg- hippodrome, colorfully staged vast spectacles, gladiatorial that these modern mentally upon rings, rings into divided costly amphitheaters, in conducted vast and gladiators, where here one set there an- excitement and amusement other, derring- engage in deeds meet keyed public, present being American do, cheering to the frantic of assembled wholly for- pitch and under tension More, spectators. thousands of half-mad eign ordinarily with to that associated pursuits, game days on dios all hundreds thousands of ra- academic and educational pick up over the United States higher essential in Geor- announcers, por- dramatic and a voices of gia, and, such, governmental function every pic- every program moving tion of They of that rationalized State. not ture during theater season carries whole mind; ra- me into that tionalize I cannot frame on. myself It to me into it. seems processes view, the din particular arrangements that the mental which In such stress, delight, struggle particular colleges obtaining per- tangles flying legs, the spectacles, arms and alternate formers in this series vast extrications, heady actions and all the particular arrangements well as each makes game, drawing interest education, higher “re- envisioned as are a money, insignificance. into fade ductio ad absurdum” of even modern educational judicially know that in the football We theory. They seem to me the season, coast, from Lakes to from coast to expressive slangy but vernacular common Gulf, commercialized activi- gigantic, these stadiums, “take higher in the games, ties, intercollegiate football for a ride.” attention, priming in in- absorb the majority opinion, public spectacle. The writer of the form of terest distinguished product Georgia’s himself a period judicially during that We know that system when, days in the educational team, at the football Tech the members of admits, day, day, he field not same, fifty, Georgia there were about day glory athletes at the apart. They have their become men set University, and education was table, rules. training own Glori- own points pardonable pride Georgia’s arms, abroad, they go fight- fied men at higher education, early awak- universities, bringing men of their to- ened, just- persistently maintained. He scouted, it, garnered have been well out, ly too, points physical training fame, trained, honor, money ga- may properly university form a been, fame, If have not no lore. deference, pointed, With he life. has honor, portion much and a smaller point, any practice, do I nor precedent, think he can gate receipts. principle the basis of judicially know We that in these successfully which it can be maintained that gate- and division of a guarantee intercollegiate football the conduct of receipts between associations of profit, now as is the case *9 respective colleges, greater the the that season, may legitimately said football teams, prowess greater of the fame and the activity function or to be of receipts. judicially We that kind, gate know higher all any least of a function of receipts gate I for us hold has no education. think having other- the size rela- ears, not, to hear standing wise would be having whatever to the educational tion eyes, them all to close to what but colleges, or that the members see, judges may and this not us can do. teams, entirely the skill and. ground gaining, teams in prowess of the matter, I take of the In the view members, individual and to that of setup particular precise of a State Uni- field, running, in block- combatants on unimportant. versity is When vast tackling, interfering, kicking, passing, ing, program of meetings, fall spectacular notice, receiving. judicial take is con- which we quite the matters of which judicially know that there When we take We side, opinion judicial put notice among educators are to one and this a difference of examined, education, particular record is it is interested in found those to, only intercollegiate games, teeming as to not football evidence as conducted, that, prime they danger crying de- but are in out reason are racket, justified incentive for the conduct of or have generating into a too, know, games football and in the judicially that on the scale themselves. We there is no difference of demic, 'informed, they being aca- manner on which conducted any- by Georgia opposed opinion and Tech Athletic Associa legalistic one,3 that, where, upon proposition intercol- tions the financial returns from a financial without that them, games, legiate games in themselves are not only they played, in it is and the stadiums which higher and that pre- department struggles and indeed the itself, greatest dint of the cautions, con- would vanish like the mists of the of the various morning.4 games, govern ferences which maintaining scholastic directed toward that record When it is considered in professionalism standing preventing great shows that these educational exhibi form, they that are con- aggravated too learning, these intercol tions of the legiate injúry great in, to the cause of Georgia, ducted withoüt take for know, too, months, nearly ordinary we that it higher education. But in season of two Tech, that, by many managed and thought $75,000, so more than for conducted, prestige substantially and athletic and of course the same amount particular colleges outstand- gained guarantees for teams with under short, compete,5when, make the the which in teams these teams worth September in candle. is considered that price manager on, fixes the If were not carried “Our business athletic contests Department Physi- we sell football tickets to we would at which have period years particular game. Education.” After cal expenses are,- Georgia about what the A witness for Tech testified: we know what our tickets should them, be to meet had team in “We did not a baseball 1934. We how, pur- fix to the one in 1935. As to the that is games. we the admissions have expenses pose giving up mean I refer to I in When baseball activities college expenses maintaining fallen out. baseball the entire has staging substituted soft ball because instead We purchase having, playing ball, games, lands, two teams hard playing fields, soft for the we could teams additional maintenance to 50 fields, ball. no student in of coaches and There is all salaries proceeds college There is no out of the baseball. instructors come the funds of the Athletic Associations. college baseball.” whatever terest receipts Georgia President of the from Tech The total appeared college $127,000 had a testified to be excess pay comparable team but it did not itself. fall of 1934. This is baseball for the year “They receipts year and it had track team from from years pay source, except not for itself. As to all of these boom did that and ceipts. greatest intercollegiate sports maintain, period that we our re- -the pay receipts foot- do not were increased a Our themselves^ present public by $50,000 great is the taste. I Rose ball. That deal from the game did the time when football in 1929. In can remember in California Bowl paid support itself, year and baseball had an the school excellent sports receipts It is carried on. from foot- best of only the total team and war, people $200,000.” year when be- since the world about ball sports, bodily contact came interested for the Univer- witnesses One paying Georgia, questioned sity on a basis. has been when “What ' regret say Department Physi- that we could not “I is there about participation we have maintain in athletics without as affects cal Education charging sports for football is different in athletic any *10 games.” department University,” in the other record does show answered: guarantees, of these it amounts audit contains is that if were difference “The that, receipts instead a statement there from athletics not for the showing guarantees appropriation in the total these is of No be none. would made deducting Legislature go then amount collected and to to given. them, only Physical net amounts are Department Education. of department year colleges physical edu- these two tivities of the of of each October tickets, part higher learning, public on cation as a of cannot admissions take from and their extend to the exhibitions of divided between themselves prowess $300,000 college year, it is at These competitors, over a teams. are, education, truly my opinion, in as little this is exhibitions once seen that if. function, governmental pays. connected with remote, indirect and would be that, My if associates seem to concede contests of football teams recruited paid employed or associations the athletic employees of the various instrumentalities short, teams, if, upon in play men to government, beginning of the federal games just were not the teams and banks, page appellee national listed on by-product the higher educational claim brief. I no one would think it§ process operates general as it games that admissions to in which football body, deprive Georgia student this would teams maintained various these educational competed ernmental for the activities patrons subj quality, and ect the to tax. amusement, glory financial ad- But, see this distinction. if it I cannot vantage of the athletic associations of one, I think the record in this is a sound institutions, exempt would be from State sufficiently to bring it under the case shows admissions because the set, squad that the football is a rule thus see function. I cannot special University, provided for unit in the any how better contention could made scholarships allow large in main- the federal tax for teams up by special and maintained ances built by athletic tained associations scouting,6 and that ac schools. picked special group of this- tivities Entertaining pure- with either have no connection whatever these views as to the education, character, department ly or the nature and from the the pursuit business Certainly, promoters, higher learning.7 standpoint ex- of these connection, lays they any remote which the government have it is so as to hibitions spectators, as that the im natural and indirect a tax is might myself munity agree extended to the ac- find which that I should unable to Armstrong, principals Pro- Associate do afraid the not take the same Professor History Económica, fessor interest. Association, it, Athletic I Chairman “Q. As all of effort understand Georgia they had that Tech those testified is made toward who have good getting players. prowess? Physi- in an general A. Tl*at is true of the plan Department.” is of Tech to find out about Educational cal questionnaires inquiring them; send out Department History. “Q. Take the they football, are in separate interested they whether manager, Have business aid; they scholarship nat- need they coach, keep separate and do set urally getting coaches are interested in books, people and do have who players. good employed up coach and train special students, spe- that testified and do It was while the athletic go out does cial ones association physical not have a find these stu- sir; degree in A. No no which a is dents? is other.de- granted, partment applies it contributed in in 1934 around general scholarship Social; $7,500 than fund. is not a question department.” court, strictly To the “Is educational ¡not careful effort required subject elaborate made “Football availability ascertain degree students for a a student who is enrolled qualified particularly along Department Physical intellectual in the Educa- history, engineering survey- Any lines or1 student who tion. makes the Var- ing, Armstrong Georgia or the like?” Dr. sity Georgia an- Team Tech swered, “No, any particu- we don’t make goes plays out in either of these these, principal to find activities, merely doing lar effort but if a voluntarily. is as much interested in his honor stu- gets no credit He this in the Univer- high dents a coach is interested his sity Georgia, and in Tech students, get honor Department school Physical he there is Edu- playing boy degree attention as granted.” same cation which a “Degrees Department Physi- football.” in the given practice cal Education who a matter those “Q. Ah of actual complete teaching physical experience, the course for is not done? A. I am education.” *11 forms, upon operations gov den in its is education here enterprise. ernment. here a But, my agree associates If the and Tech Athletic if I with As- could competed only higher education here with each is more sociations that there - that, institutions, eye ear, than though other State meets exhibitions, me, is a subtle football there would still be no from hidden reason, my opinion, holding connection between these governmental functiori, agree they required I still cannot could not be to collect purchasers is not collectible. from with them that the tax admissions tax tickets quite plain For it seems to me that the col- to them. attending lection from the considered that hundreds of When person admissions tax of 14 cents a is not colleges associations and uni- upon govern- such a direct burden are en- versities not conducted gaged States applicable deci- ment that within the government competitions public fa- in these sions the of the United States vor, subject spectators require the athletic associations same kind of and when it enterprises which to collect the conduct the athletic, asso- further considered that attending purchasers tax from for them very Geor- ciations take games. conduct, part of the gia and Tech weakening them, proceeds At the risk of the force of claim of goes to here, by taking ground my dissent broader which immunity from a tax ernmental necessary, might say I than I as well colleges taking uniformly falls on all unsuccessfully long believed and ass spectacular have erted,8 in this seasonal bid governmental im that claims of patronage and favor me strained seems to munity past from have in the been taxation and farfetched indeed. view, liberally my granted. In the test too respectfully I dissent. constitutionality or Fed of State operations upon eral tax of the United States, States or the means chosen powers of either for the execution of the taxing government, should be whether the govern statute discriminates affected, and in favor of other tax ment necessary payers. But no means it is far For under the go me to here. decisions, by the as it is now settled MCDONNELL NEWS BU- law v. GENERAL REAU, Inc. particularly United that of the States Su v. Dravo Contract preme Court James No. 6312. 208, -, Company, 58 S.Ct. 82 L.Ed. Appeals, 1937, Circuit Court of Third Circuit. 6, of a levying December delivered Universities, State, nor tax not Sept. on 21, 1937. associations, but on and to be on the athletic Rehearing On Dec. 1937. tickets, purchasers of is not and paid upon govern a direct burden cannot Georgia. of the State mental function remotely Indeed, indirectly and so it falls so law really regarded in cannot as that it tax at all. If State as gross burden receipts contractor derived of a him the United between a contract of locks and States, the construction stream, invalid navigable is not in a dams operations burden laying a certainly federal government, Federal a football upon purchasers tickets to imposing a bur invalid game cannot D.C., Carmichael, 13 F. v. Texas Co. 242, 246;

Supp. er, Cir., Commission Therrell v. 872. F.2d