The morning call., 1893-08-20
1T WAS THE LAW.
The Suit Against Quinn
Explained.
The Action of Williams, Dimond s.
Co. Is a Test Case Against
the Collector.

Mr.. Quinn, Collector of Internal Rev
enue, gave the following explanation yes-
terday of the suit brought sgaint Will
liams. Dimond & Co. for the recovery of
the $500 taxed against them as wholesale
iiquor-dealers:
1T is only a test case. and is not against
me personally. but against me officially, as
Collector of Internal Revenue. There
were ten firms altogether, namely, Ca
brera. Roma & Co.. Eugene de Saba s.
Co., Gonzales & Lopez. Montealegre &
Co., }. o. Msy~rtnk. E. L. Il. Steele &
Co.. ThannnauseI & Co., Urruela &
Urinste. j. T. Wright and Williams, Dl-
mOnd & Co. The plaintiffs, you observe,
are the last firm on the list. Well. it
amounts to this, that ali the other firms
have agreed to make this test case.
when Mr.. Eldridge was the Internal
Revenue agent he reported these firms as
liable to the wholesale liquor-dealers' tax
tor the years 1928. THIS report was
made. as required by law. TO the then
Commissioner of Internal Revenue, Hon.
John w. Mason. and the assessment was
made on the August list for 1892. Will
liams. Dimond & Co. made the payment on
Febr uary 20 of this year. protests being
filed by their attorneys. and claims for the
IefundinG of the taxes were also filed, with
such evidence as they chose TO forward,
and were sent on to the Commissioner in
Nav.
Their demand for the refunding of the
money WAS considered by the Treasury
Department. aud finally rejected on June
D. On the 1st ult. they received word TO
that effect, and as the law permits them TO
st M
Internal Revenue for the recovery of the
$500 pa as wholesale liquor tax they
have ayaIled themselves of that privilege.
IF the court finds that the assessment
was erroneous Judgment will be rendered
against the Collector and the Government
Will pay the Judgment. The Governments
interests will be looked af er by United
States District Attorney Garter.
The statement made 10 the contrary.
while based upon these facts, Is wholly
false and malicious In its meth DDS of pre-
sentaiion, and is intended 20 injure ME
by causing people to draw false conclusions
from the transaction"
In support Of lhi- explanation two let
ters from Commissioner Mason were pro-
duced. One was addressed 20 Agent Ed
ridge. under date of August 13 OF last year.
and dealt particularly with the assessment
made against ThaEnhauser q Co.; the
other, da ed February 10 of this year,
stated that, after examination, all claims
made for abatement of the assessments by
the ten business houses named were re-
jected.
"These amourts" 1890 each). wrote Mr.
Mason, appear to have been properly
assessed, and should be collected without
further delay"
1t was upon the first letter received
from Mr.. Mason, 80 il is learned from AS
slstant Internal Revenue Agent Bert Nj
Thomas. that the revenue agent decided
to tax the firms as wholesale liQuor-dea-
ers. ThanDhauser IL Co. had great
many customers in Mexico, and supplied
them with liquors. as ell as groceries and
provisions. Although this huuse carried
| on a business as commisso on merchants, il
purchased and consigned Liquors in its own
firm name.
Messrs. Thannhauser & Co. claim to be
merely purchasing agents for their corre-
spOndents. receiving a commission AS suct.
but they made purchases from Wholesale
iquor dealers and winners in this city and
| brewers in st. Louis, and in all such trans
actions only Thannhanser 6 Co. were
known. There was no priority of contract
between the parties in Mexico aud the
parties from whom Thannhauser & Co.
purchased in this country. Such at least
were the facts upon which Mr.. Mason
based his communication, they having been
conveyed to him in letters from Mr.
ElGridge, and 10 which he was then reply-
ing. The principal points of the commits
siOner's letters are contained 10 the follow
Ing extracts:
am OF the opinion that Thannhauser & CO.
are dealers and as such are liable TO a special
tax.
Thsnnhauser & Co. buy liquors In their own
name pay for them with their own money and
become, for the time being, absolute owners
thereof They send these liquors so purcha sed
to parties who have or may order them de-
mandlng the cash or carrying IL to the account
oil their customers, as the cas- may be- The
commission. us II is called, is only another way
OF ing he profits which ThaDnhauser & 90
receive In carrying on their business.
The contract between ThaDnhauser & Co and
the parties from whom they purchase goods has
no reference whatever 10 anybody els. II this
cont act or purchase should be violated by
Thannhauser & Co. the seller of the goods 10
them would have his righi OF action against
them for damages. He could not have apy
rem dy against their customers. And so. If
The parties from whom the goods are pur-
chased Violate their contract 1hannbaliser &,
Co. would have a remedy against them but moi
against he foreign customer.
They buy for themselves in the same manner
as any other wholesale dealer purchases his
vests absolutely In them. The fact tnat they
as wholesale dealers know in advance who is T.,
bP their customer does not change the sitla-
ton.
II their customer in Mexico should fail To ar
cept tue goods ThannhauseT & Go. would have
no right to turn them back upon The parties
from whom they purchased, but would Them.
selves continue TO be the ownrrs and have the
right 10 sell them to any body else Just as much
as II no order had ever been CIV by their Gus
toners.
Tbannhauser & Co. are running a wholesale
establishment to all intents and purposes.
-%-$--