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. z "% i aa , a , nee ee RRND A me HO 100-9032 The Houston Post, daily newspaper, Houston, Texas, carried article on May 9, 1957, which read in part as follows regarding NAACP: "A state district court judge Wednesday placed the National Association for the Advancement of Colored People under a permanent injunction which in effect strictly defined the terms under which the organization can operate in Texas. "The permanent injunction issued by District Judge OTIS T. DUNAGAN barred the NAACP from: "1. Practicing law in Texas. 2. Encouraging, instigating or financing lawsuits in which it does not have a direct interest. 3. Soliciting or having others solicit lawsuits. 4. Engaging in political or lobbying activities in. violation of state laws. "JUDGE DUNAGAN also ordered the NAACP. chartered in New York to pay a franchise tax which the state alleged it anarn khansaniesn J aaa «a Panad an anrnnanati an AwnA ha WML Wee LY Fe Oo OA ed = Lael fee F etiead Qeuibwids Lis 11S directed it to keep open its books for inspection by the attorney general's cffice or state auditor. "He directed the NAACP to pay all ecerued franchise taxes plus interest and penalties within 30 days after the amount due the state is determined, or forfeit its right to do business in Texas. - "Texas levies a franchise tax on all corporations doing business in the state according to their size and their gross yearly income. "Assistant Atty Gen DAVIS GRANT said the NAACP had not filed any reports with the state since it was chartered and there was no way of estimating the tax until the NAACP filed its reports. "In preliminary arguments the state had estimated the figure at a minimum of $900." -2-