. .
OFFICE OF. THE AITORNEY GENERAL OF TEXAS
AUSTIN
.
ou, pa afraot Qor
thm Ime star Qoaont
40, wh6roin tbm Sol-
at we etatear
idea
.th
.wretlubl8lt
1 1a fz~fi~~cll~
o lnp
~; sh
ny8r eatarea
a
th tha ferM l0a n-
o ~to r na o a mt~
lr a l lea M ao &verml8a ntr 8o w
to
thid itt0o o a t8fa the ~0~0Wfli45 ~Oti8iO8Sl
“‘Al’tialo ‘I-B; O*no T8h ip ‘I’3
- titlm1 0to lll
wo*, oomphto on tit@oour8a of ac4nrtruatisa
.
-18 Artlole1-B bdtoatu tbrt the Rkmble
oil & ROiin1ll45OO~QUIY 8N 8irQIy Utfm a8 @$Ut8
Of the ?OdOTd @OVOPMMt @ad ~?OtidOE ha8 h.M
Rd. for tha titla oi dl UtOTi818 t0 0888 ~diroot-
l~fTomth0 hMid8 orthe shf ortotho?adu8l
oorolnhat . Ii tha Bumble Oft & Bitin- Uom@amt
pWOh88ed tbe'omnt for tbi, ~?O$Ut it 8OOQO gait.
WieO8t fb8t the tU OR OMOZIt rOtid XiOt8ppiy On .
th.80 8hipMnto. ~~
*Sin81 bring 8WWdO4 the eOZktlratthe Efglrbl.
611
Oolrpr,qhno ontoPa Jl6#$Oti8tiOll8
Md 8.
ute rontnrk to three 88panta eaatnot-
0th. lOtUd OOlt8tr\lat~On Ona t0 pUTOb88. au
ipterid8 raqolrod Zor tblroomtruetior; 'Itwould
l.- th8t in thh imtUkO0 tb8e OOat~OtOr8 l?. @Ofi
"a& .",,8r" of tha Hmblq 011 & #~@a4 Ck~q#uy,,~~
tUTII8&WXt8 Of the r0dO~8l oOV8TIIMnt~
tbi8 W8Oli it WOtid 8WR tb8tthe tU would QOt 8Jbply
on thi8 00m0nt.
Vkore lo another 8iSlbilftyilIWNUWOtiOn With
tk. p-80 Of Ut8Ti8 r8Uld tk8t 18 thr OOlltTMtOT8
ai@& pUTUh88a TU+IdX OOaOF@tqiMtUd Of WMllt,
88d 8ld @Wile I!I tbl8 088. Our 8810 uoui6 bo to
the N8Qpmlz opentor, who IR turR *lot&Yair the lo-
Ullt Withlsfld,@IIT@1 8nd U8tW 8nd 8&1b the,OOa-
tmOt0r 88 meptir OowOtO.
c
.A.”
.
“Wbwsld 8& Qtb Oi8tO
p a rldvirin#~a8 whetho?
We 8rUO+rclOt itI 00X ilit8rprd8tiOE th8t the tU -PM
not 8pp1l 011 8biwt8 di?Mt t0 th. BURbh oil'& Rofinfag
008pny er ta tho'throo oontnotormto whorthry have
lwrded OOutnOt for the l8tu81
eOR o t~OtlOtI~
WO mt?ril&
POr lA7181Il6W rbathrt Or Mt the t4X
8hi&UOlit8 t0 thr rUdy4iX rOlkOZOt@ a:#-
wu tkr euaot 88 am lngmdieat
Of tho OoEO?&..
Jmtn?
'P.6. h r or OAUdQOvir tI8Wt
lwr d@ d l iub
ii304-ri20d-f0040atmOt to the.o~ttaoitbmd atd
P r ?O&R tll~t0
8Rl~
XWOt8hi~~Td8 8thU!&O. m
Oon00liart0d stul * frda 0appant in turnwmrdoa
privatoOOnt?8Ot t0 l OOILt~OtOr t0 8OtP8Uy do Qh.
The OOBt=@t b0tU.M th* COlUOlid&ti She1
r%ti 6OEp8or ld the ~OdOd QOV8ItIMtlt&WOViAO8
th8t the rm-
t1t1. to tla Propwty and btl11Aily8
wiar ln tho brad8 of tba ?‘rdord Ooron8ut but-
6008 not 8 1fir81lf p%WldO that tho tit10to thr
-tori818 8 +.8td
p" in th. TOdO& tl4teMtit. PlWW@
8Ayiw v&other or aNtha tax would 8pp1;l on 8k19-
Sallt8 t0 t&O aOEOOli68tti St-1 It -04 @OSp@Br Or
t0 the WntnotOl'8 011 thi8 pTOj@Ot.
c
?%morabl~ Ooox#u 8. Shrppsri, pm 4
or fnsOlon8l part therwf, of ramrat on wvorl pormm ’
in thk 3trta waufaotartn(ror grod~o~ag la *ad/or h
porting Urnoat blto thi8 8$8ta, 8Gd who th8TUitar $1~
tribut.8, 801b Or We8 thtt 89lrd it3 itltT48fofrO-X@09
Said tu 8hti1'8aOTUO M 8ne 18 t~lpOOd Otl ths.fint
btX88-te 618tributlOn, mlo Or U8.; &WcWided .hM&Ver,
ao kr 8!Uu be jMld Oxrapt011On. 8&h, 618trfbxhioa~.
er WI.- Tha poTsOtt liable ZOt 881d t8X 18 berrby ad-
to be 8 tdlrtrlbut0r.~~
Iaqupaah 08 tax l;&bllity M dtrtba lbw61 h4u
upon nhethor,thoRaibl8 011 and ?efLn!ag cJoagea~18,u"I r&depend-
ent omt~o~or with the Trdeml borbrrGeGt for ‘the~soastrmotloa
Of a t5;LUOl. 8Gb -104tT8 PtUlt at &jtVW, %X88, O? OBlr 811
Ult Of th. l?tSVOIWt6Et to? the htrn18hifI$Of PrtOThl8 8Ud 80 -
t0 thi8 sad, thi8 ‘hp8ltM?lt, 6UbS*qUN¶t t5 PUr Orl@nr: P
oplaloa raquaot of Nomabar I!S,1940, aowht an& rwdtsd ‘8 oopy
of the 0oGtmct antared tat5 betwueu ostd airtier for the pm-
m8 at determining thrlr elaot ralatlon8hip. Thfr sontnat is
Auorlbed ar “(lantnat Ho. W-N&D-480" for "'tasrgatia~
Plrnf SW-
_ Llltiw and dost-Flus-A-?ixed-Foa Cooetruotion,II0ui
O~smtlon Contnot ,* 8rrd the anterbd into cn the 4t
O*t& tr1940..
,
The gmoral propooltlon that a rtatb wq not tax the I
ot
O~erOtltm8 8U inwtrainant Or 8aylenOy UIQby~d by th4 TrbOd
~OTSl7iWbDtto OS- it8 pOWOr itIt CP$l’8tiOD 18 ~BCOllt~~Ol"tl-
are, *ad reQulro8 no bisOUIl8~OR b8’XY. The 1lutant qmstloa la-
folt~ only a dotemltmtion of'whether 01 nat the Rw&blm 011 en&
%fiiii4 c)OZ&pant 18, wrd*Z the 8fOrO8fi1d OOatrcl8t,
o5llStitUtd 8U
rfmloy or instrtmwtsllty Of the todmnl Oovertmaat uo a8 to
@lOthe it, 8134 tkrXl~ With WhO8 it OOtltTOOt8 fOT Mt4Mt 8fd OtbOT
arterl8ls. -i$h t)rls OOtlat~tUtiW41 Ir?iunlty fi- 8t?t8 t8XatiOll.
It i8 a0 lOti@? MOU88w t0 ha OOllOITMd d%kt the
P180@ wharo the 008ant i8 601~r8Nb iOT thil OOa8t?WtiO~ job,
Wdar tbr 11~. ot en811 hol4w thet the revrnu~ 404 tmx wourea
5r l 8tetr l*imot ruoIl ltt4 turitbr) eves whfokt~Lu~lre jurir-
~lt,t~QG h88 beea Wd& t0 th. tillit& dbtU bt 8ald 8tst@. ?!l18
Wutloa ha sb een
r ewvd by the lruotm@at of t&r w-ad.:od Buak
AU, Publlo 110.819, crgprw& Oetobar e 1018 and Meotive an-
Q8r7 1, 194i, el.lrAn8thgfcmi~rl~~ari8~1~hrritorial Irpaitimesto
:_
.~!
i ,.
/ (
’
to tbr iapoaltionof ltolao~trreaby thr various statw.
Tim l
p r o lfid
oontrao‘tualpro~;aIono, whloh,
to our
mind, oonatltute thq Hunblo 011 6 Raflnlng Coapany an Indepmd-
ut eoontnotor 81th .thmUnite4Stata of Amerloa, so ma to ba
labjeotto alLState and looa& .taxatlon, ratbe? thaae naro
agent or laatrwen~llt~ of the (lorornment aajoyina lsutanlty
fru rwh krrtlor, are polatd out u f&w8r
lh tiio Introduatory part of the durrlbd tintnet,
the Buable Oil,& E*fiJlu& to q *theOontraot-
or',. la deaorlbad by the as an glnde#endoat
untm0tor* in. the rope ,~
+mltshs, the Cotainnont deslrea 80 io+~ln the
alO* ula to Iten the Oontrastor,llting II aa tnir
pondant mntraoter, ~sL~:~~laal.udi~ the plw ror
th e
Ina tr ~llao iio f
,.l:*..,tho
n lna‘tllll8tisn o fth e
m$ u ip c ea q ), l~uIp~u18 operate a o*rtaln
oonrtruat,
tol~lp~ntrtorAear~jto~,?oEU~"
Title Xl;,Artlole ,1X-A,SeitIoa 1, provide8 that8
Vi~r Oontraotor rhall, n th elhorte8t, ruromblo
the, furulrh the laber, nteriala, tools, rohinery,
lqulprmt faallltlea, suppllm not furnished b7 tb
ua7uMuc, anb renIou, +a6 do all thing0 neauaaq
rOr the oo3pletIon or the following uorkt”
in subdIrIrIena (a) and (b) ot the above ?WetiOR t, it.
18 prorlaea thab the Csntraotorah011 *Conatruet and lqui on
*aid alto, in aooordanoe with the approved drarlagr, 8p00f ffoa-
tions, rad l~tmotiotf gro~lde4 for horou:a,a lant for tbo
maufiroturo of toluol *all lrohitsoturr P atha en@naor-
h 0WV1@0# OOtOriag th8 aOhg& ,pr@?8T@tiOll Ot dTOWi%O,
01~10, tpeoirimions end rleld sn.&neerIng and aupcrvIeIoa
a@UOoary tor the&?ioiant lxaOu%fOn and 00OrdiMtiOnOf tb
m* to be rornlahed b the Coatnotor rubfoot to thorpproval
Or the ~OvO~eA~. xt ia furthor prorl~rd that *tbo eontnotor
'ml ObtaInUl AwOOUX-Y iiOW00#, iwma and a pmala rIQR
lu 10001, akte aad idOts ltborltlra, if obte fnabler"
The cmtraotor la herobt authorlard to 40 all
thUga neourary or oonnniont In md about thr eon-
rtruetion and equipmeat of the
If, lmludlmg tAo employmat
p a r eolu a g
r r gtaa d
th aa o r honamlu
k (
ltrbjeot to the oontral sf lrad oonatltafr rplo7@u
of the Oootnotor of Ltr rubaoatnotOn;) *n&ho IO-
qalsltion aad supply of 811 neaiaa y metorieL8. lh*
l0ntn0ti8g orrhr m7 nqbh0 ,the 0atfnotor to
4ioJaa fmm the nork luoh rrployou as the Contnot-
ing Oftloer doem inoongetoat, or whose onplomaat he
4e0asnot to be In timpoblio Intonat, lubJootto
lp oal by the Gontrdotor in aooonlanoa with Artlolr
VI!-M of Title VII bereel for 2mIaetatemnt ai any.
lu o h
ia g & o y e e r u
fit10 TIT,Art1010 W-F1 o.qnoeru!ihJ”~~~buro~t for
Contnotor~a YSxpendltorea,*pro* doe 00 r
ftua, to ritt
*(a) All leb!m or iadarf~~m l * * tolls, maohlnar7,
lqulpamt, deslgnr, plans, luppllea, *eniris,+ l l.*
u(J) Pracdm on luob bonds a# Imuanu pol-
10100 l b tbo contnotl orrhr MY np~ir41 th0
oort at eU publls Uab“p lit7 ooplo I'# Ueblllty,
worhaan*a oorpeaaation, fldlt7, irro, theft, burg-
lary *a4 other Inaorraae that the Qnatnetln6 Offieor
nay l)proto as ruaonebly neaaa8ary tor the protootloa
of tbo Conttnatcm
c
sonorable Oeorgo PI. Weppard, pago T
a(+) Payaanta rdo by the Uontreotor under the
looial seourltybet (omplo~w"a eontrlbotion) end
lp lloablr St&e or loeel taxor fWa, or ehar(lu
.x ah tho dontraotor8ay b0.reqolrJ oa aooount0r
thla'eontraot to pay a or for say plant, oqqalpamt,
proouo); organl~tIon m8tuial0, auppllea, pOraoaue1,
~mdk; ma llaenao La; and lr approwd ia writin
‘& e#ranoo by the Coamotlag Offirer, r6yaltloa oa
patentr uaod, Inaloding thoaq ownedby the Contr*otor.*
Tlt1a Iv, Art1010 n-r, sootIom’4, prorldul:
04. tie Qontr8otorshall, to the extentof
18s lblllty take all aaeh and trade 4laootrata
robetow, 01fowanoea arOdit# aalra~e, oomalla fona
and dlrwt. bonItloO~Ioas l
nb ahen unable to 8 Uco
la r 0m gor0,6uoh bwd0, it th d lpe0a9817aott-
ty the Contreet~ OfYlarr to that effqet and the
rwaaon tJwe+sr. b dot8nfniag th olotaO1.net
008% 6r art10100 md rst*rIalr of every kind,n-
qulrd tar tkr pwporo 0r this oontnot,them
shag1 bo d&gOted from thr pose ooat thoroaf all
oaah and .trOdo Qlioounta, robetea, allowenoo, mad-
lt8, l01v0g0, oomm.laaloaalAd alrOot b0airloatioo8
whioh harr \ooruad to ths bmerlt 0r tbo Contq4tor.w
(Oar Note, lo deduatlon of taxes aentlonod hare in arrlging at
net relmburaable oar: of rterlela, bat rather the lxprraa Oa-
arrrptlonb the uoverrursnt of auoh taxes oa matorlala,by Zoo-
tioa I, (1 I , o r Ar tso le
n-A,nut lborr q*trdi)
title m, Arti& VII-r, aootloa 1, prwldea:
*The Contnetorhereby l@wa that if uIl1.1
"(a) ProrareW tharcftema1ntd.n l-h bonds
aud lamuransa In auoh forma ln auoh ruabntr and ior
luoh periods of tlao aa the QontraetIn(l Ottioermay
8pprwe or require.
* fb) Prwun all wouaary nrritr uid lioonaoa~
oba and abide by all lpplleablo Pma8 net~latlonr,
0x4 i:
nanoaa 0~4 other rul4~ or tha w4trd statu 0r
herlo*, 0r the mato, Terrlter7 or iob-alrldon
theroofwheroln the uork la donr, or of any Other
4ul7 aomtitute& pub110 authOrItye
.-
.I81
“((I) mu* this protlsloM 18 wdrea in wrltia#
by tha Contmotiry Offlew reduoe to writ1
OODtlrOt ia -888 Ot 'hro#hoaaand DOllan
Rsdo by tt rot the pargear or the work Eor8Md.r rot
80ITls88, r88?1818, ~ruppll.8 wohln4lry or 0 UlpRut,
or r0r the MO ‘8herufj fnsd 8herdn a pm 4 don
th ar t
o ih
00-0 ir8l rsf#abl8 to,tko tlo t8r s~
m&
nt)
a ;
mll auohoontnotain its own name aad not bln4 OT
yg~g~.8ho Gmorsment or tkr Q?ntnotly O#$- ;
8aa @neti proridon awla84 te :~
the withrrioroM8 te#IO la n88r u8~
tlon of *margo~oy Pf8a8 raa *rider Tltlr VI et t&a Oga-
trsot, we rind tk8 rollow~ prorl8loB8 00nt41noa l8 ApJwnalr A,
Inoorporsted .thrroia
8~ -ntrrenr*r~ ~3.
'The nnal 6088 Qutlflorte or 8n dnondnuit'
1, theroot or ml lddlthml llnal Wet g lrtlfb&o
roriad ror in Art1010 VI4 Of Tit10 R hemof 8hall
.f rA8lnd0,the follawfstg608ts and ~0xp8m08 lMurraa
br the Oontmotor la the oonstruotlonor aoauS8ltloa
o flaeh farilitlua
*(a) Ai1 labor aa katorlelm, tools, wahitio~,
oqai rent, derlgnr pluw, ~poo~tloatiaar,8 pUe8,
sorvP 008, power,8c osq hrol, an& utor ropplY 88 noo-
lssa r for lltbrr trnparuryor prmmnant use for tha
boruti t or th@mOrh
we**,
w(J) Payimntr smdo by tko Contnotor War the
Baeial soeurity Aot uploy8r~8 ooYJtribldioA)
8ppllubh StOte at Lo01 8sxaS) iO.8, or oha
th8 Contr8ot.W nay bo ‘roqalred en Hoolrnt of
horoot to pay on or for w iant, *q&But, prooh88,
0 anl8atloa utrrlala *up ios, personnol,~ pornit
83 llooamo #.a‘, and top1 im on pafonts rud, la-
aludi8g tho88 emed br tha Oomtraotor.*
Uhdor the lontentlon of the Bumble Ol,lrad R8flaln@
OOR~~ utd ltr rarioar rubaontnotqn that tbr @born drrorlbd
182
oontract sanotltutbs tbo Coepemy 8 mar0 purohaaiag agod for tha
rlnltrdstat08 novarrzaentrather than (La~B@+psndmt eOntrWtar,
our lttdntion Is direotid to Art1014 VII-8 of Title VfX, prorldlng
a8 railomr
"Toa title to all wrk, c~plctcd or in ttlc ClwsL
of coa3traetioa un4br Title XI ohall be in the Cmcrumc?nt.
LlJcewfso,u-nocrdelivery at the sit8 of l..h*
w9rk 3r st an
appr~rbtlittonPe alto 6nC upon frnpeotfm aa soae?trnoa
in nltfa? by thb contrsotingoffher, wtlo to l;1 ma-
terlrls (6YCOept prim lUp aaththa auppliik8and by-pro&ok
‘to be ratnrM4 to Contnotor t5 rofhwwvl, teals, ue4olilnam,
eqtsfpent and ruppli80, tar kioh the Co ntmo to lhmil.
r be
to be relrbursid under Title IV *ball rr8t
cltt,.Ctlo# ia
the Qoverr~~nt e Th411eprortslons aa to title b&z18 vet&e4
In tho Ooreinmsnt &all not aperat* ti,rsliere.the Coatruot-
or fro01 my ftutleeimposed aadsr ths trmr of this OOntraot.w
1% is our opfnlon that tba abow-qaototl titlb-takinr
lrrsrrgcwnt ttocenot eharq;ethe fundaacntal rrlatfon b&men the
mrtics at i.n!?cym3ontomkSw,or-Snd b*Alder, establlrhe4 by
the fsrrqlnr ~z-wi~lm~~ ra.3fert-utesof the Cantract. iIntbe
oortrary, tda very rs4tur6, relfad U-XIIby chc C~xmaotOr to
ooagtltntqi It a Faderal At4ncy or ini;truzentallt,p 30 as t3 65-
oaga taxation by the ?tstc, my, &AXTto cur a'nd 6~40, furnish
an lrgrzwnt thr:tsuoh rgenoy sas not arwfcd by the other pro-
VfSfOBS of the dontraot; bemuse If the Rmble 011 C.I!a?in~~
-rwg yJ B under all the obli@tt!ono ar.6 protlsioar of the
erlnotrwd toa;Othcr,.mersly nr.rgtnt of tke !hftsd
.ztttas,t!?eo r2uld it n3t bc a rutils an3 mwllG~,less ~~4rttars
to prc~vl4ethqt title to the mrk w3sr c nrtrwtlon hml mater-
ials eoine into the job, sMald voat lo the "orefnment7 Ii
the rslntionchlp contnnded for by tba Euruble911 an4 ??ellnin((
Csap?lnyerfstrr, th43 title to ruc!~property imd mwtcrial
rocld ‘ m4er cst?Ibli?bcd griaafp~.es 0r ‘the laa of &genoy, be
vested In the lmited Ptstbs, as yrfndpal, without any contrast-
~a 1provlslono to ta b lrfe0t, an4 nttkut title ever p4srlag
to or rsetln~ in said Cmtraetor.
war6over, 1n conosation with this :ltlo~msolng taaturo
of f!m Coatmet, ~4 s~ralfiod1~ .)of.~t
to tbot psorlstan thereof
aiov4 r,aote4,that “these grovlslo~s oato title beins rmteb
in the Oovernnmt ahall not opcrata to rsllcve the ooatrcretar
rram any ctatftts Im~aasd under thr tarn3 :>f tulle emtraat.w
Those duties are aeasaoarily those lapose13 upan the Cc.ntradDP,
80 a0r1gJlat04 by
u ~lna*poad*ntoOntraoto?',* tllo pwtl80,
te lonatruot the plant la quortlon in uoordanoo with the toma
of the bontraot,Oomo of whhb hare boon montlosod. As an Illur-
tntion Or thb, r* point
to th0 ?oqui?Mont thdt th0 Cont~oto?
8u8t a??8860 fo? *publSa li@bilItJ @4~10~0?*8 lirhIl$ty, rorka.11'8
rorpm8aIoa, In8tlrano~,’
ate., wk ioh Is faconsfrtont rfth the
thra?ythat the~ont?wto?ho?@ la a aero agent for tho Waite4
stnt.8,
.
The b&t*? rrplma~tlon of the title-t&Ily provldoa
looam to bo that it -8 lnrorted ln'tho Coatraot br tho Oo~orn-
lun% In an offort to dniriso rubotintlml I~uruoo aostr
th?a m&
Itslam~tlon OS lo88 of lua h
of tha riJ: wtorlrls.
Thr ?iSOi 1. .Ot iU3B~i~8WUlOO Of OOVO?S8ont9r0 q?tr Ir roll
lrt&ah& Klthout thir wrangMont nhenby tPtla rould root
In the Ooromtentrt thr tlmopouoorlon of tho wtulalo parrod
iron the 8ellor to the Contraoto?, la?go Inra?anea rha?gu ~wooll
k ?OhbU?Ubh t0 the COcltSaOtO?U #St Of tb0 WetO Of 8t1rO?i&
r rthlbok8tatd ~rorid088 or thO aontmt lloa(l
Withothon t00 npII?ou8t0 PentlOa, erkbllsb thb ~018tf onrhip
of tho pr?tlo8thereto 81 thatof lndegondaat oontrria)arl8(1
owner (and la our oplnlan they do), tbon It folla, under tk “~
680181t.o*ae of Trlnltyr8xm oonat?ootIon Comprny v8, wor~ean,
891 0.8. 446, 54 Sup. Ct. 4669,Ta L.M. 918, tbrt the soi148-
o?I~Iutory uaent tax lotlo br Art1010 Tool?(4lOa),Va’mn’r
&motet& Rovlaod tXri1 Statutes of ~~~8, apan the 1.0~0 8tm
QIPbnt Corgorutlon, 88 418t?ibutoP under statutory 4dlnI~tl.
upon the 881~~of oement by it to ?‘?mRuablo Oil & Rdin
*v, l8 minaept~nasst ooatraator, or rought to b0,
be &n unoooJtItutlona1 burden upon the mltrb 3tato8 Or Amerioa
or an l@lOl or lnstruaentallty thereor, OTon tberrgh trm 8laouJa3
of suob tax booemo a part of the oonrtcuetlon oort rnd a8 pamso
on to tho Corernnent bf the ContSaotor ls mrrlatwsablo Item of
thr net aomt af material going Into thr job. TM8 O*@O iarol~od
the Irpoaltloa of a state lrolm tar on gaaelln oonsamod b y l
Ooatnoforrlth the t?r&tedStaten fe? the oonstxaotIorrat 1or.u
On the Ylaslppl Rlror, and 'the oowt held:
Vt.m ?oua? grsntodby the 0O8iLlQ?UO
ol*ru~
I8 undoubtedly b?cud lough to lnelade roest?+w-
tiOI&Md IMiXit8WUUbOOi 18VOH in aid O? B8ViU~tiOn
of t&a YIr~lrsIppl Rim? an4 to authorlao tbo per-
iO?MCM Oi the nO?k diTUtlr by.+JOtOSLUSMt OffiOO?#
.
and omployur Or pu?mant to smtnotr rud a8 thora
lwdo u to r p p r na nt.
The leftor motbod uu oboron
and the nlldltf of tbo ohrllm tar is to be tut-
ml da tb4t 8~18. xt 18 not 18 UpOa tb0 Ob0iaO Of
wane, the wkln:r: or the ooatraotr, the ooatraotm
tba&8olrrs, or Sn7 t?marUtion to whiobtho fo&oZrl
~ronrrunt la a prt;l or in rhloh lt 1~ Imadletely
O? (L1?@&1y 00lloo?nod.!torla the emotion 1816
or ~r~&-oat apan the Want@ @‘OS0 OS not, ?eOeir.d
by the oont?motor* m 9nott0n In rbapoet0r itr
?&&ion to tbo Wlo?al pndo*w la *holly aallkr
6UbSeqUMtl~‘, 18 t&o oUO Of tUne8 te Dravo, i%atl’aOtiU6
wway SOL 0.8, 154, 80 8*
808, 62 L.lM. 165, the suprw
et.
Court 08 the vnltad Btatu want WWI fwtho? In ?artrltta& tho
bOt?ln* of irpl:ulgovww~t~l fmwnlty f?o8 stat8 ore180 taxer
br aoldl that an oeoupatloa kr, n&rn?or¶ by (rorr Inrose, IrL
~~im.&be?t -8Od bya *tat0 sipiur
8 OOntJrOt4SrItatho
c
185
unit.& status, as lay14 l direst burdoatoa tbe~W&oml Oovar~-~~---
mrnt, sun though tbr lrpssItfon,of tho fax may lso?ssso ‘t&r
sort to the gorr-t of the mu4c oontraote4 to k bono. Tha
.a‘.‘ 0s Fsshsndlo~OIl mmpsny I. nisslsrl $d,,MI V*S* 810, 'Ia
Il.I& WT, 48 s. ct. 45lt rsdlsa-Uotonyo
stator. ws V* 8. TO 75 L. rd.. 1ew 51 s.m.
1. ToxBg eoBipan’ re$ u. 8. set so h. lass, 56 8 l ( I t. a .lt,
ssaally roftrrred'to by the Csq&sll.? 6ssaral of the Vslksd
dtatw In hIo 6@8iSiO1~ with rupeot to the lulurlon of &ate
lxoIno tma* la oaBneotlon with stadard goramBwBt ooBtnok,
WO?O by tb@ dw18iOB la this 0880 SWa?Sxy lirStS6, If SSt dIS-
twYihhO& OUt Of lSiStUIOO.
%ut,It ry br polatsd oat the6 thr ooatnat Isrolv&'In
the Instantinqolrylo ol t&o ty l doolgrsted le a *ooot pltu*
lontraot *ihI t&r ooetnet lnro Pvod In raob of tho tn0 Saprsmo
Omrt aooIrIono ~~OOUSSS~ @bow, lp p ea nto hmvobeon ubnt Is termad
l *lump lsm Ouat?sot," that I‘ to say l ooatnrt lot spsn aonpat-
:tlto bidding far a stated lud flxd 1-p aamp rhloh il0s.UIs-
Oh40 not only the sort of lsbo? and mato?lal8, but the profit of
the eontrao?,oor,and rlthout sn dIvl&n of tho p?sfIt ~?QB ths
lQ.t of the Job. It Is on? 03 Inion t&at~tbln6iatfBOtiOn door
not due07 OS ISIS tb0 atm0rity of tha oltsd oauo ma that
ia ~tO?minin~ *ether the 8tatUS Of aa iBd8pOIIdOIltOOBt~OtO?
I8 Or8ato4 by t&o lnrtrumant, It maker no diffO?oSSs rhotha? the
a~t?Mt i8 8 *lump ‘w oontmot* 01, l ro-ealhd *OOd plUSa 041L-
*not. Thin oonoloslon 1s nupportad by tha follswIng oaso8 Ia-
mlr:e *808t plus- oont?8ato but nmartbalur boldIn th t l
Qb ta 8 of ln6apendmt oontnoto? w-q tbnby o r o a t& lQr68n Ye
mtb, 139 yssa. bso 8s 9.x. 101 xh$tsry Sta?rstto & 00. v.
-mrke, 198 111. l+T 50 8.f. i! "arlton v',l'ound?yurd Ita-
l~-+r o a a coot‘ .104 Xloh 148 58 Il.*.816] Beuaann v* out
u:O 181 wig. !I& %+d ti. ;. %#f J. a. ~C?8?’ 6ll@~OO?~ do.
.* dte Uoal Poner’co 5s '(8 14s c?oun a1ty LSQJO t* Imdtm-
*fl*l Aooidwt CO58&&l, 51 P ia) 1t8; AllaIl'I*Bspubllo !kIlk-
%I co., a4 8.W. (&I) 805.
X8 tbo lau of Carlton ~8. Foundry md KaohiIu hro-
lt l
‘ut8o c #o uly, l, eupn , wo rind the lblloring pe*Inent
‘~trwat,
*& * + Fo aa' taiso'JadloIal
. - nstloe eat tho
,A., mqsmsnt of psylng sOotc plur a perossu
Wtraot DSIOOfor-a rom~lotod Job,
htor, ad I8 a o o o BIa 6
l 001 1 0p6
*
,oatnator6 :B #1 80O *l:l lW@ ‘08W
fdO?81 #OV8?BWEt h8 let 6OSt~OtO
\
<
.-.
186
imionb1.s aeorge II. bhepprd, pago 1S
th, 0flIIOWUO
l~a Qitth 0 SW 0r ~n0~ ONth i0
D-4 me t+hnge 18 0~0~ iath0~thhod 0r0wtpebg
nt.IO M ohmngo in th e
p a y m ethsro relatloa Ot the
~rtloo from that whioh oxloto where tho pwment Is
l ltmp Bar. PhOMWU Or058DUthgpq80d~t rOr
the oorplrto~ joblir not eo8trellIng; 4 ohawe In
thi8~?OgUit aOr0 !lOt OOlWUt W :ndOjMAdOtXtO,-HLtmO-
to? &to lnmploye, either at oomm lmw or wIthin
the Bualng or the lo t.9
! Tk enme h o g e no nl lla8ou of aeoo~pluw ooatreets.
08s olur Ia geyaadly kwwa •~ aooot-plw-4-pe~ua~ge~ eoatreot8,
j. mhorola the rw or Dtotit 0r tho lontr0ot0ris made dODOlld8Bt apoa
the ooot 02 the work u&d Is l fire6 porouityo thrreori aatl tho
other la mm as maoot-pluo-a41trd-~oe~ ooat~oto whrnla the
oaatnotor~~ 00 aaution IO not arrmtd by nrlatfonr In tke ooot
or thq job, but Y s in l fixad amunt~ alter& oaly by ehutgeo la
tk o lo 0 0r th0 work. The aontnot ondo? lonoSUwatIon here Is
oi the Prttor type, rhilo tho 0100s oltd IaeeU~atolf above Involved
the ronurtrpo 5r aOOtit-phU" oontlaot. But II0do llotbelieve that
tho metboa of mapotlag tho omtraot4Wr oomp8no8tIon m&or %oot-
Pouo* oontraeto has en bearing whatooeror In dotetinlng whether.
each lontnotor lo an Iadopwulwitomtnrter dor the otbu term
l4 obli~tlom 0r thr oontnot.
aotbority we bnr rod upoa t.ke.typo or womb
olvd h@n th*t lo, tho *OOOt~D~t10~~riI~-r6ea
oae laoldlng thr provIsIon, horela&ovo dir-
8mge or title ta the Unite6 Stat88 to meterfrla
oatnotor, lo the owe 0r stemlard 011 a0mpnttyto.
. US, &eel&e& be@eMar t0 LoI0 br the Suprao
we qwte rr0srthe o~no~rrfag ogfatoa 0r astfoo
wlthdnua only IO order that prrtlaent ra0t0 mar
Wur wdoh are not atoted Is the rain opfaion or the roartt
“In thlr onoo tho ooatnoton en not to meho
l ltnt.d lulla ithe rontnot uo ulltto ia 5ludo
tlzoir
prorite u wall u t&d.? outpat 05 that rush profits
ry ooter state ta~eo pala by the8 oa puahaau or
wlino wed an&or th elo ntno tr la la hitivha
Co. Y* Oroojann, 891 Do go 46b l4 0ImIlmr
uoeo; but the eontmOter@ IWO arm WI rooo
the rstwl wt most leu all dioaountr 4ta., or al
r$erial ena 811 labor employed under tho aeatraota (ox-
lpt ltnte4 oontral otCioe rxponrer, @to., oi the OOQ-
tn0t0n) *pi~-did-ru u0m to* l 0t~w lm tar
theirtl-•,lxperleaoo, ba8Inuo loaneotIoao, roopoaol-
blllty, IOnIOO8~eta. eta., ia the perf5rMnOe 5f
the eontnoto. Thi mai” oi mater181 ln this 0880 are
In off-t n4e to thr oootnoto?a for tho UnItoUstotoa,
delivery being aode a tth r .4 R l Wul.
lr ltntlo nof tho
United Jtateo ana title puoeo to tho WnltedStetu
. nantie gesoliao IO oonsume4 la Ito uoo ror the Ualted
. The kr io pold by the baler and l~eolfloelly
~ooe4 on to tke eonswer.w
Mid8ItIonell~,It ry bo polatod out that like thr
ooatraotbefore uo, the ooatreot befose the oou?t in tklo ume
lo nta lnr dln agreemoat oa the p&rt Or the WverMuit to roImburo8
the Contra&or to? 011 oat-of-peelot lxpenndltoroo
of the oontnot-
or r0r matorinlo, Ine2uUlag stat0 or loaal taxoo.
'Tha OOWt held that the tax *all4 aLIdooxt#titutiOti
the tax 80tm ultimately
aotuIthoteadIng rarioa the mauni
Iloverauat, rinse the ooatnotore did not perron anr getermeakl
fI$egtM .theburden 50 the hderal OOyImemt uao OoROOqWutial
.
It IO not alear frvm the langubgo 0r the oplvloa in
hi8 onoe rhothor tho tar was aph,:ldsolily tiponthe theory thd
the oontnotor was aa lndependoatdontaetor -ratherthan 8n a goat
or the dorernaent 5r upon the ground thattheaoverameat,br the
lxprrro ummptioo ln tho eontraet, 0r stat0 and looal tax00 00 aa
it@8 of rdmburoeablo oosts to the oontnotor,waited its OOa&I-
tatIonol
iortlaitym8 Bat upon althor or both Oi each
t6xatloa.
*hurIoo, we oonolderthis oaoe to be 'OR 111~foam” with the sit-
uation hero prerenteQ. me eontrolling raoto oppoarto be Identl-
lal 8ad betk tborleo upon wbloh l stats trx levy ~I%Ybo aoartitutloa
lll.rwrtaiaea are protont, via., (1) the oommodlty won rhlob
the tar 18 levied 10 8014 to 4z4 iadepondeat 0.9ntzaotor rather thna
ln agenor or the Covunaent or, (8) dtemrtel7, it tho oontraot
hero does not oreate the statrio or Iadopendontoontraotor, never-
tbelooo tho doveraeat has.ripreoo2~ lived Its impliedOon8fltfttlOn-
ll lmmmit~ from &ate toutlsa on the raoo ai l oontraot,uooute9
m¶er ln mblin8 l0t 0r Coagrodo (Aot 0r fttly 8, 1940, pablioRo.
MS8 76th aoll(lre80) whleh aore not prOYlt2e oXWptiOR Irma otet0 md
loul kntloa.
In this oomeotion an4 lo ia&IortIte 0r the Intent 0r
@04pmo It night bo palate6out thatlIai&r aotoauthorlrlag
th-0 a e g e tlr l
kmtnota
d ror.tho llationalDefonoe (hbllo Ro.
a, 96&k Ooagnar a~4 ?ablIo He. BB8, Tbth Oo~noo~ -or0 iImllY ..
Ito~~nblo aborgo 8. ahepp8H, p4g 15
*Me6 dthout My pSOti8iOB bxb8ptin8 mob sontr8etor8 fmm
#fate ~6 looal taxe8, althou& rueh UbaptfOB rlease8 rppm?od
$a thb bill upon introdartloaor by amendaent, but ner:,
rtrfabra,
(a0Bgr8dow Rebord, Jaao 4, 1940, p4p 11,401.) .
In View ot th e solOB8ide~tiOMlBd l othoritlrr,WO ad-
rim yea th8t any proood to or11 upon the LOBO atar hmoat
yea
corporrtloa for yaont ot the tax l oaroiq tmlader Artlole 0047
!a Vernon’& iinotetb6 Revlrod CM11 cttatutor oa thr sale ot
by it to the Rumble Oil.& Rbtlningtkay~~~~,, l8 bl6bpendbBt
roW?aotor rlth tho mlted s+6em ot Amorlo~,or to uky of ltr
8mbaontraotora ia tho ooa8t~otloaot the e080ribd pro bbt. It
tollom8 tram thir, wIthoat tarthbr diroarbloa, thbt 8ald tar is
likadao oolleotiblo umter tho throbdimtioot*otaal 8ltaatione
doaoribti in the qtwt.6lbttbr to -Joatnta tha bB0 Sk? d-
abrporatiolt.
Youn may truly
ArnRKKY OEWRAL 01 TExhe ,