
    The People of the State of New York ex rel. James Butler, Inc., Appellant, v. Walter W. Law, Jr., et al., Constituting the State Tax Commission of the State of New York, Respondents.
    (Argued May 4, 1925;
    decided May 15, 1925.)
    
      Tax — franchise tax — corporations — deduction from net income of large proportion thereof to pay to foreign corporation owning most of capital stock.
    
    
      People ex rel. Butler, Inc., v. Law, 210 App. Div. 804, affirmed.
    Appeal, by permission, from an order of the Appellate Division of the Supreme Court in the third judicial department, entered September 2, 1924, which unanimously confirmed on certiorari a determination of the State Tax Commission assessing a franchise tax against the relator for the year beginning November 1, 1919. The question was whether relator had the right to deduct from its net income ninety-five per cent thereof because of an agreement on its part to pay such percentage to a foreign corporation owning ninety per cent of its capital stock.
    
      Herbert C. Smyth, William M. Butler and John H. Rogan for appellant.
    
      Albert Ottinger, Attorney-General (C. T. Dawes and Wendell P. Brown of counsel), for respondents.
   Order affirmed, with costs; no opinion.

Concur: His cock, Ch. J., Cardozo, McLaughlin, Crane, Andrews and Lehman, JJ. Absent: Pound,’ J.  