. . 

OFFICE OF. THE AITORNEY GENERAL OF TEXAS 

AUSTIN 

. 

ou, pa afraot Qor 

thm Ime star Qoaont 

40, wh6roin tbm Solat we etatear 

ide.t a h. wre t l ubl8lt 

11 a fz~fi~~c o ll~~ln; p shny 8r eatarea a 

th tha fer M l0 a nl r a l o ~to r na o am t~ lea M ao & ver ml8 a ntr 8owt o 

thid it t0 o o a t8the fa ~0~0Wfli45 ~Oti8iO8Sl 

“‘Al’tialo ëI-B; O*no T8h iëIí p - titlm 31 0 to l ll 

wo*, oomphto on tit@ oour8a of ac4nrtruatisa 

. 
-18 Artlole 1-B bdtoatu tbrt the Rkmble 

oil & ROiin1ll45 OO~QUIY 8N 8irQIy Utfm a8 @$Ut8 

Of the ?OdOTd @OVOPMMt @ad ~?OtidOE ha8 h.M 

Rd. for tha titla oi dl UtOTi818 t0 0888 ~dirootl~fTomth0 hMid8 orthe shf 

oorolnhat . Ii tha Bumble Oft 

ortotho?adu8l 

& Bitin- Uom@amt 

pWOh88ed tbe'omnt for tbi, ~?O$Ut it 8OOQO gait. 

WieO8t fb8t the tU OR OMOZIt rOtid XiOt 8ppiy On . 

th.80 8hipMnto. ~~ 

*Sin81 bring 8WWdO4 the eOZktlrat the Efglrbl. 611 

Oolrpr,q hno ontoPa Jl6#$Oti8tiOll8 Md 8. 

ute rontnrk to three 88panta eaatnot0 th. l OtUd OOlt8tr\lat~On Ona t0 pUTOb88. au 

ipterid8 raqolrod Zor tblr oomtruetior; 'It would 

l .- th8t in thh imtUkO0 tb8e OOat~OtOr8 l ?. @Ofi 

"a& .",,8r" of tha Hmblq 011 & #~@a4 Ck~q#uy,,~~ 

tUTII 8&WXt8 Of the r0dO~8l oOV8TIIMnt~ 

tbi8 W8Oli it WOtid 8WR tb8t the tU would QOt 8Jbply 

on thi8 00m0nt. 

Vkore lo another 

r 

8iSlbilfty ilI WNUWOtiOn With 

tk. p-80 Of Ut8Ti8 8Uld tk8t 18 thr OOlltTMtOT8 

ai@& pUTUh88a TU+IdX OOaOF@tq iMtUd Of WMllt, 

88d 8ld @Wile I!I tbl8 088. Our 8810 uoui6 bo to 

the N8Qpmlz opentor, who IR turR *lot&Y air the l oUllt With l sfld, @IIT@1 8nd U8tW 8nd 8&1b the, OOatmOt0r 88 meptir OowOtO. 

c 
.A.” 

. 

ìWb wsld 8& Qtb Oi8tO p a r l dvirin#~ 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'throoontnotorm to whor thry have 

l wrded OOutnOt for the l 8tu8e1 OR o t~OtlOtWO I~ mt?ril& 

POr l A7181Il6 W 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 ro r OAUdQOvir tI8Wt l wr d@ d l iub 

P 

ii304-ri20d-f0040atmOt to the.o~ttaoitbmd atd 

r ?O&R tll~t0 8Rl ~ XWOt8hi~~Td8 8thU!&O. m 

Oon00liart0d stul * frda 0appant in turn wmrdoa 

privato OOnt?8Ot t0 l OOILt~OtOr t0 8OtP8Uy do Qh. 

The OOBt=@t b0tU.M th* COlUOlid&ti She1 

r%ti 6OEp8or l d the ~OdOd QOV8ItIMtlt &WOViAO8 

th8t the t1t1. to tla Propwty and btl11Aily8 rmwiar ln tho brad8 of tba ?‘rdord Ooron8ut but6008 not 8 

-tori818 p" 8+.8td in th. TOdO& tl4teMtit. PlWW@ 

1fir81lf p%WldO that tho tit10 to thr 

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(r or 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 itltT48fofr O-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 Oxrapt 011 On. 8&h, 618trfbxhioa~. 

er WI.- Tha poTsOtt liable ZOt 881d t8X 18 berrby adto be 8 tdlrtrlbut0r.~~ 

Iaqupaah 08 tax l;&bllity M dtr tba l bw61 

"I 

h4u 

upon nhethor ,tho Raibl8 011 and ?efLn!ag cJoagea~ 18, u r&dependent 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?tSVOIWt6Eto? 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 pmm8 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, II ui 

O~smtlon Contnot ,* 8rrd the anterbd into cn the 4t 

0 

O*t& tr1940.. , 

The gmoral propooltlon that a rtatb wq not tax the I 

O~erOtltm8 ot 8U inwtrainant Or 8aylenOy UIQby~d by th4 TrbOd 

~OTSl7iWbDt to OS- it8 pOWOr itIt CP$l’8tiOD 18 ~BCOllt~~Ol"tlare, *ad reQulro8 no bisOUIl8~OR b8’XY. The 1lutant qmstloa lafolt~ 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 h a s b eern ewvd by the l ruotm@at of t&r w-ad.:od Buak 

AU, Publlo 110. 819, crgprw& Oetobar e 1018 and Meotive anQ8r7 1, 194i, el.lrAn8thg fcmi~rl~~ari8~1~ hrritorial Irpaitimesto 

: _ 

.~! 

i ,. 

/ ( 
’ 

to tbr iapoaltion of l tolao~trrea by thr various statw. 

Tim l pro loontrao‘tual fid pro~;aIono, whloh, to our 

mind, oonatltute thq Hunblo 011 6 Raflnlng Coapany an Indepmdut eoontnotor 81th .thm Unite4 Stata of Amerloa, so ma to ba 

l abjeot to 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 *the Oontraotor',. 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, l lting II aa tnir 

pondant mntraoter, ~sL~:~~laal.udi~ the plw ror 

the Ina tr ~llao iif ,. l o:*..,tho n lna‘tllll8tisn o f the 

m$ uip c eoonrtruat, a q ), l ~uIp~u18 operate a o*rtaln 

tol~lp~ntrtorAear~jto~,?oEU~" 

Title Xl;, Artlole ,1X-A, SeitIoa 1, provide8 that8 

Vi~r Oontraotor rhall, n the l horte8t, ruromblo 

the, furulrh the laber, nteriala, tools, rohinery, 

l qulprmt 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 Csntraotor ah011 *Conatruet and l qui on 

*aid alto, in aooordanoe with the approved drarlagr, f ffoations, rad l~tmotiotf gro~lde4 for horou:a, a 8p00 

maufiroturo of toluol *all l rohitsoturr P atha en@naorlant for tbo 

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 l xaOu%fOn and 00OrdiMtiOn Of tb 

m* to be rornlahed b 

Or the ~OvO~eA~. i 

the Coatnotor rubfoot to thorpproval 

xt a furthor prorl~rd that *tbo eontnotor 

'ml ObtaInUl AwOOUX-Y iiOW00#, iwma and a 

l u 10001, akte aad idOts l tborltlra, if f 

pmala rIQR 

obte nabler" 
The cmtraotor la herobt authorlard to 40 all 

thUga neourary or oonnniont In md about thr eonrtruetion and equipmeat of the 

If, lmludlmg tAo employmat 

p a r eol u ga r r gtaa d th a a ork honamlu ( 

l trbjeot to the oontral sf lrad oonatltafr rplo7@u 

of the Oootnotor of Ltr rubaoatnotOn;) *n&ho IOqalsltion aad supply of 811 neaiaa y metorieL8. lh* 

l 0ntn0ti8g orrhr m7 nqbh0 ,the 0atfnotor to 

4ioJaa fmm the nork l uoh rrployou as the Contnoting Oftloer doem inoongetoat, or whose onplomaat he 

4e0as not to be In tim poblio Intonat, l ubJoot to 

l p 

VI! 

oal by the Gontrdotor in aooonlanoa with Artlolr 

-M of Title VII bereel for 2mIaetatemnt ai any. 

l uo h ia g & o yeer u 

Contnotor~a YSxpendltorea,* pro* doe 00 r 

fit10 TIT, Art1010 W-F1 o.qnoeru!ihJ”~~~buro~t for 

ftua, to ritt 

*(a) All leb!m or iadarf~~m l * * tolls, maohlnar7, 

l qulpamt, deslgnr, plans, l uppllea, *eniris,+ l l .* 

10100 

u(J) Pracdm on l uob bonds a# Imuanu poll b tbo contnotl 

“p 

orrhr MY np~ir41 th0 

oort at eU publls Uab lit7 

worhaan*a oorpeaaation, 

ooplo 

fldlt7, r 

I'# Ueblllty, 

i ro, theft, burglary *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 

l ooial seourlty bet (omplo~w"a eontrlbotion) end 

l p 

.x t 

lloablr St&e or loeel taxor 

ah 

fWa, or ehar(lu 

ho dontraotor 8ay b0.reqolrJ oa aooount 0r 

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 owned by the Contr*otor.* 

Tlt1a Iv, Art1010 n-r, sootIom’4, prorldul: 

04. tie Qontr8otor shall, to the extent of 

18s l blllty take all aaeh and trade 4laootrata 

robetow, 01 f owanoea arOdit# aalra~e, oomalla ona 

and dlrwt. bonItloO~Ioas 

f l nb ahen unable to 8 Uco 

l a r 0mgor 0 ,6uoh bwd0, it thdl pe0a9817 aottty the Contreet~ OfYlarr to that effqet and the 

rwaaon tJwe+sr. b dot8nfniag th o l otaO1. net 

008% 6r art10100 md rst*rIalr of every kind, nqulrd tar tkr pwporo 0r this oontnot, them 

shag1 bo d&gOted from thr pose ooat thoroaf all 

oaah and .trOdo Qlioounta, robetea, allowenoo, madlt8, l 01v0g0, oomm.laaloaa l Ad 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 l xprraa Oaarrrptlon b the uoverrursnt of auoh taxes oa matorlala, by Zootioa I, (1 I , or Ar tso le n-A, nut l borr q*trdi) 

title m, Arti& VII-r, aootloa 1, prwldea: 

*The Contnetor hereby l @wa that if uIl1.1 

"(a) Prorare W tharcftema1ntd.n l -h bonds 

aud lamuransa In auoh forma ln auoh ruabntr and ior 

l uoh periods of tlao aa the QontraetIn(l Ottioer may 

8pprwe or require. 

* fb) Prwun all wouaary 

oba 

i: 

and abide by all l pplleablo P 

nrritr uid lioonaoa~ 

ma8 net~latlonr, 

0x4 nanoaa 0~4 other rul4~ or tha w4trd statu 0r 

herlo*, 0r the mato, Terrlter7 or iob-alrldon 

theroof wheroln 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 ot i00-0 h ir 8 l rsf#abl8 to,tko tlo t8r s~mnt& ) a ; 

mll auoh oontnota in its own name aad not bln4 OT 

yg~g~.8ho Gmorsment or tkr Q?ntnotly O#$- ; 

8aa @neti proridon awla84 te :~ 

the with rrioroM8 te #IO l a n88r u8~ 

tlon of *margo~oy Pf8a8 raa *rider Tltlr VI et t&a Ogatrsot, 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 l ddlthml llnal Wet g l rtlfb&o 

.f 

roriad ror in Art1010 VI4 Of Tit10 R hemof 8hall 

rA8lnd0, the follawfstg 608ts and ~0xp8m08 lMurraa 

br the Oontmotor la the oonstruotlon or aoauS8ltloa 

o f l aeh farilitlua 

*(a) Ai1 labor aa katorlelm, tools, wahitio~, 

oqai rent, derlgnr 

P 

pluw, ~poo~tloatiaar, 8 pUe8, 

sorv 008, power, 8 c osq hrol, an& utor roppl Y 88 nool ssa r for l ltbrr trnparury or prmmnant use for tha 

borut i t or th@mOrh 

we**, 

w(J) Payimntr smdo by tko Contnotor War the 

Baeial soeurity Aot uploy8r~8 ooYJtribldioA) 

8ppllubh StOte at Lo 01 8sxaS) iO.8, or oha 

th8 Contr8ot.W nay bo ‘roqalred en Hoolrnt of 

horoot to pay on or for w 

0 anl8atloa 

iant, *q&But, prooh88, 

83 

utrrlala *up 

llooamo #.a‘, and top1 

ios, personnol,~ pornit 

im on pafonts rud, laaludi8g tho88 emed br tha Oomtraotor.* 

Uhdor the l ontentlon of the Bumble Ol,l rad R8flaln@ 

OOR~~ utd ltr rarioar rubaontnotqn that tbr @born drrorlbd 
182 

oontract sanotltutbs tbo Coepemy 8 mar0 purohaaiag agod for tha 

rlnltrd stat08 novarrzaent rather than (La ~B@+psndmt eOntrWtar, 

our l ttdntion 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-nocr delivery at the sit8 of l..h* w9rk 3r st an 

appr~rbtl ittonPe alto 6nC upon frnpeotfm aa soae?trnoa 

in nltfa? by thb contrsoting offher, wtlo to l ;1 materlrls (6YCOept prim l Up aaththa auppliik8 and by-pro&ok 

‘to be ratnrM4 to Contnotor t5 rofhwwvl, teals, ue4olilnam, 

eqtsfpent and ruppli80, tar kioh the Co ntmo tl or hmil. be 

cltt,.Ctlo# to be relrbursid under Title IV *ball rr8t ia 

the Qoverr~~nt e Th411e prortslons aa to title b&z18 vet&e4 

In tho Ooreinmsnt &all not aperat* ti, rsliere.the Coatruotor fro01 my ftutlee imposed aadsr ths trmr of this OOntraot.w 

1% is our opfnlon that tba abow-qaototl titlb-takinr 

l rrsrrgcwnt ttoce not eharq;e the fundaacntal rrlatfon b&men the 

mrtics at i.n!?cym3ont omkSw,or-Snd b*Alder, establlrhe4 by 

the fsrrqlnr ~z-wi~lm~~ ra.3 fert-utes of the Cantract. iIn tbe 

oortrary, tda very rs4tur6, relfad U-XII by chc C~xmaotOr to 

ooagtltntqi It a Faderal At4ncy or ini;truzentallt,p 30 as t3 65- 

oaga taxation by the ?tstc, my, &AXT to cur a'nd 6~40, furnish 

an l rgrzwnt thr:t suoh rgenoy sas not arwfcd by the other proVfSfOBS 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~vl4e thqt title to the mrk w3sr c nrtrwtlon hml materials eoine into the job, sMald voat lo the "orefnment7 Ii 

the rslntionchlp contnnded for by tba Euruble 911 an4 ??ellnin(( 

Csap?lny erfstrr , 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- 

~a1 provlslono to ta b l rfe0t, 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, 
u ~lna*poad*nt oOntraoto?',* 80 a0r1gJlat04 by tllo pwtl80, 

te l onatruot the plant la quortlon in uoordanoo with the toma 

of the bontraot, Oomo of whhb hare boon montlosod. As an Illurtntion 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 i oh Is faconsfrtont rfth the 

thra?y that the ~ont?wto? ho?@ la a aero agent for tho Waite4 

stnt.8, 

. 

The b&t*? rrplma~tlon of the title-t&Ily provldoa 

l ooam to bo that it -8 lnrorted ln'tho Coatraot br tho Oo~ornlun% In an offort to dniriso rubotintlml I~uruoo aostr 

th?a mIt& sl am~tlon of tha riJ: OS lo88 of l ua h wtorlrls. 

Thr ?iSOi 1. .Ot iU3B~i~8WUlOO Of OOVO?S8ont l rt&ah& 9r0 

Klthout thir wrangMont nhenby t P tla rould root 

q?tr Ir roll 

In the Ooromtent rt thr tlmo pouoorlon 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& 

rr th l bok8tatd ~rorid088 or thO aontmt 

With othon t00 npII?ou8 t0 PentlOa, erkbllsb thb ~018 tf 

l loa(l 

onrhip 

of tho pr?tlo8 thereto 81 that of lndegondaat oontrria)ar l 8(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 ?‘?m Ruablo Oil & Rdin 

*v, l 8 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 l s mrrlatwsablo Item of 

thr net aomt af material going Into thr job. TM8 O*@O iarol~od 

the Irpoaltloa of a state l rolm tar on gaaelln oonsamod b y l 

Ooatnofor rlth the t?r&ted Staten fe? the oonstxaotIorr at 1or.u 

On the Ylaslppl Rlror, and 'the oowt held: 

Vt.m ?oua? grsntod by the 0O8iLlQ?UO ol*ru~ 

I8 undoubtedly b?cud l ough to lnelade roest?+wtiOI& Md IMiXit8WUUbO Oi 18VOH in aid O? B8ViU~tiOn 

of t&a YIr~lrsIppl Rim? an4 to authorlao tbo periO?MCM Oi the nO?k diTUtlr by. +JOtOSLUSMt OffiOO?# 

. 
and omployur Or pu?mant to smtnotr rud a8 thora 

l wdo u to rppr na nt. The leftor motbod uu oboron 

and the nlldltf of tbo ohrllm tar is to be tutml 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 whiob tho fo&oZrl 

~ronrrunt la a prt;l or in rhloh lt 1~ Imadletely 

O? (L1?@&1y 00lloo?nod. !tor la the emotion 1816 

or ~r~&-oat apan the Want@ @‘OS0 OS not, ?eOeir.d 

by the oont?motor* m 9nott0n In rbapoet 0r 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* et. 808, 62 L.lM. 165, the suprw 

Court 08 the vnltad Btatu want WWI fwtho? In ?artrltta& tho 

bOt?ln* of irpl:ul govww~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 (It. a .lt, 

ssaally roftrrred'to by the Csq&sll.? 6ssaral of the Vslksd 

dtatw In hIo 6@8iSiO1~ with rupeot to the l ulurlon of &ate 

l xoIno tma* la oaBneotlon with stadard goramBwBt ooBtnok, 

WO?O by tb@ dw18iOB la this 0880 SWa?Sxy lirStS6, If SSt dIStwYihhO& OUt Of l SiStUIOO. 

%ut,It ry br polatsd oat the6 thr ooatnat Isrolv&'In 

the Instant inqolry lo ol t&o ty 

l ontraot *ihI t&r ooetnet lnro P 

l doolgrsted l e a *ooot pltu* 

vod In raob of tho tn0 Saprsmo 

Omrt aooIrIono ~~OOUSSS~ @bow, l p p ea n to hmvo beon ubnt Is termad 

l *lump l sm Ouat?sot," that I‘ to say l ooatnrt lot spsn aonpat- 

:tlto bidding far a stated l ud flxd 1-p aamp rhloh il0s.U IsOh40 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 

l Q.t of the Job. It Is on? 03 I nion t&at ~tbln 6iatfBOtiOn door 

not due07 OS ISIS tb0 atm0rity of tha oltsd oauo ma that 

ia ~tO?minin~ *ether the 8tatUS Of aa iBd8pOIIdOIlt OOBt~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 Iamlr:e *808t plus- oont?8ato but nmartbalur boldIn th t l 

Qb ta 8 of ln6apendmt oontnoto? w-q tbnby oro a t& lQr68n Ye 

mtb, 139 yssa. bso 8s 9.x. 101 

-mrke, 198 111. l+T 50 8.f. i! 

xh$tsry Sta?rstto & 00. v. 

l ~-+r o a ac oo të . 104 Xloh 

"arlton v', l'ound?y urd Ita148 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 a) 1 

%I co., a4 8.W. (&I) 805. 

i t 8; AllaIl 'I* Bspubllo !kIlkX8 tbo l au of Carlton ~8. Foundry md KaohiIu hroëut8 o c #o uly, l t l l, eupn , 

‘~trwat, 

wo rind the lblloring pe*Inent 

*& * + Fo aa' taiso'JadloIal . - nstloe eat tho 

mqsmsnt of psylng sOotc plur a perossu ,A., 

Wtraot DSIOO for-a rom~lotod Job, 

htor, ad 

,oatnator 

I8 a ooo BIa 6 l 001 1 0p6 * 

6 :B #1 80Ol* : l lW@ ë08 W 

fdO?81 #OV8?BWEt h8 let 6OSt~OtO 

\ 

< 
.-. 

186 

imionb1.s aeorge II. bhepprd, pago 1S 

th, l ~a Qitth0 0f l IIOWUO SW 0r ~n0~ ON th i0 

D-4 me t+hnge 18 0~0~ iath0~thhod 0r0wtpebg 

p a ymethsro nt. IO M ohmngo in the relatloa Ot the 

~rtloo from that whioh oxloto where tho pwment Is 

l ltmp Bar. PhO MWU Or 058DUthg pq80d~t rOr 

the oorplrto~ joblir not eo8trellIng; 4 ohawe In 

thi8~?OgUit aOr0 !lOt OOlWUt W :ndOjMAdOtXt O,-HLtmOto? &to l nmploye, either at oomm lmw or wIthin 

the Bualng or the l o t.9 

! Tk en me h o geno nl l la8ou of aeoo~pluw ooatreets. 

j. 

08s olur Ia geyaadly kwwa •~ aooot-plw-4-pe~ua~ge~ eoatreot8, 

mhorola the rw or Dtotit 0r tho l ontr0ot0r is 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 

or thq job, but Y 

aaution IO not arrmtd by nrlatfonr In tke ooot 

s 

tko l o 

in l fixad amunt~ alter& oaly by ehutgeo la 

oi the P 

0 0r th0 work. The aontnot ondo? l onoSUwatIon here Is 

rttor type, rhilo tho 0100s oltd IaeeU~atolf above Involved 

the ronurtrpo 5r aOOtit-phU" oontlaot. But II0 do llot believe that 

tho metboa of mapotlag tho omtraot4Wr oomp8no8tIon m&or %ootPouo* oontraeto has en 

I 

bearing whatooeror In dotetinlng whether. 

each l ontnotor lo an adopwulwit omtnrter dor the otbu term 

l 4 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 dir8mge or title ta the Unite6 Stat88 to meterfrla 

oatnotor, lo the owe 0r stemlard 011 a0mpntty to. 

. US, &eel&e& be@eMar t0 LoI0 br the Suprao 

we qwte rr0sr the o~no~r rf ag 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 l tnt.d lull a i the rontnot uo ullt to ia 5ludtlzoir o 

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 the l o ntno tr l a la hitivha 

Co. Y* Oroojann, 891 Do go 46b l 4 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 (oxl pt l tnte4 oontral otCioe rxponrer, @to., oi the OOQtn0t0n) *pi~-did-ru u0m to* l 0t~w l m tar 
their tl-•, l xperleaoo, ba8Inuo l oaneotIoao, roopoaolblllty, 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 UnItoU stotoa, 

delivery being aode a t th r .4 R l Wulr l. l tntlo n of tho 

United Jtateo ana title puoeo to tho Wnlted Stetu 

. 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 

ooatraot before uo, the ooatreot befose the oou?t in tklo ume 

l o nta lnr d l n agreemoat oa the p&rt Or the WverMuit to roImburo8 

the Contra&or to? 011 oat-of-peelot l xpenndltoroof the oontnotor r0r matorinlo, Ine2uUlag stat0 or loaal taxoo. 

'Tha OOWt held that the tax *all4 aLId ooxt#titutiOti 

aotuIthoteadIng the tax 80tm ultimately rari oa 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,:ld solily tipon the theory thd 

the oontnotor was aa lndependoat dontaetor -rather than 8n a goat 

or the dorernaent 5r upon the ground that theaoverameat, br the 

l xprrro ummptioo ln tho eontraet, 0r stat0 and looal tax00 00 aa 

it@8 of rdmburoeablo oosts to the oontnotor,waited its OOa&ItatIonol iortlaity m8 t6xatloa. Bat upon althor or both Oi each 

*hurIoo, we oonolder this oaoe to be 'OR 111~foam” with the situation hero prerenteQ. me eontrolling raoto oppoar to be Identll al 8ad betk tborleo upon wbloh l stats trx levy ~I%Y bo aoartitutloa 

l ll.r wrtaiaea are protont, via., (1) the oommodlty won rhlob the tar 18 levied 10 8014 to 4z4 iadepondeat 0.9ntzaotor rather thna 

l n agenor or the Covunaent or, (8) dtemrtel7, it tho oontraot 

hero does not oreate the statrio or Iadopendont oontraotor, nevertbelooo tho doveraeat has. ripreoo2~ lived Its implied Oon8fltfttlOnl l lmmmit~ from &ate toutlsa on the raoo ai l oontraot, uooute9 

m¶er l n mblin8 l 0t 0r Coagrodo (Aot 0r fttly 8, 1940, pablio Ro. 

MS8 76th aoll(lre80) whleh aore not prOYlt2e oXWptiOR Irma otet0 md 

loul kntloa. 

In this oomeotion an4 l o ia&IortIte 0r the Intent 0r 

@04pmo It night bo palate6 out that l Iai&r aoto authorlrlag 

th-0 a egetlr kl mtnota d ror.tho llational Defonoe (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 introdartloa or by amendaent, but ner:, 

(a0Bgr8dow Rebord, Jaao 4, 1940, p4p 11,401.) 

rtrfabra, 

. 

In View ot theso l OB8ide~tiOM l Bd l othoritlrr, WO adrim yea th8t yea any proood to or11 upon the LOBO atar hmoat 

corporrtloa for 

!a Vernon’& 

yaont 

ii 

ot the tax l oaroiq tmlader Atlole 0047 

notetb6 Revlrod CM11 cttatutor oa thr sale ot 

by it to the Rumble Oil. & Rbtlning tkay~~~~,, l 8 bl6bpendbBt 

roW?aotor rlth tho mlted s+6em ot Amorlo~, or to uky of ltr 

8mbaontraotora ia tho ooa8t~otloa ot the e080ribd pro bbt. It 

tollom8 tram thir, wIthoat tarthbr diroarbloa, thbt 8al d tar is 

likadao oolleotiblo umter tho throb dimtioot *otaal 8ltaatione 

doaoribti in the qtwt.6 lbttbr to -Joa tnta tha bB0 Sk? dabrporatiolt. 

Youn may truly 

ArnRKKY OEWRAL 01 TExhe ,