The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1908-11-13
Is MADE
on s!.!EIPEl us
OF Liquors BY press and
Other Companies, e. D
D. and Otherwise.

,CINclNESAl1H. o., Nov. Al
item OF very gfeEt trnp ort6nce q
aistillers. wholesale and retail liquor
dealers and @ railroads In a dscis.
ion received from the fntern6I Rev
euue Department by United States
CoIleetor Bettmanh. The frame man
aser Of one Of the local railroad Ia
CURED Of Collector BettmAnn wheth-
ar q Prohibition state or district has
the right 10 prohibit railroads accept
ing liquor billed to shippers order1'
when forwarded from other states.
The insWer to this by: Internal Rev
euue Commissioners Capers Is of vital
Importance, ana Is as follows:
While the ONCE ctnnot under
take to answer the precise question
asked, which e not Within the scope
of the internal revenue laws, in view
of the fact that the right IS claim
ed on the ground that when ship
ments are so billed the sale is prac-
tica1ly made at destination, It may
not beremtss to reatate the ruling OF
this Office as to the circumstances nm
der which tne sale is held to be made
at the piOnt of original shipment, ss-
peeially as the published decisions
bearing on the question are tnhar-
monious, the decisions IN question be-
ing r. D. 93s, T. d. e49, T. d. 977,.
T. D. ss2 and T. ID. 1883.
Shipments to shippers order
may he divided into two classes, those
where the purchase price accompan.
les the order or is charged to the pur.
chaser's account, and those where
the bill OF aading is attachO Ito draft
which must be accepted BY the pur-i
chaser in order to secure the bin OF
fading, without which the common
carrier will not surrender the goods.
with regard to the first mention
ed, when the shipper has charged the
giods on his SOB, and, In the event
that the cash does not accompany the
order, on his books to the purchaser
and mails him an invoice and the
bill OF lading, Endorsed either by the
purchaser or in blank, he has COM
pietely Invested himself Of title to or
the sale Is held to have been com.
pleted at the place where the ship.
ment originated
In the case of shipments where the
bill of lading Is attached to draft,
more difficult problem is presented.
In that case the shipper retains a
qualified control over the goods un-
til the draft Is settled. Such ship
ments, hiWever, sappear Il be similar |
In principle to cash on delivery ship !
ments, however, appear to be similar
have held that the carrier is the
agent OF the purchaser for transpor-
tation and of the shipper for colIec-
ton.
'fBut to establish the bona iides OF
the transaction and to provide against
che exercise without notice of the |
control retained by the shipper to do
vert the shipment to another than the
original person for whom intended, /
the goods must be labeled notify |
purchasers name and the bill OF
lading must be endorsed, not in blank
but specifically to the purchaser on
whom draft Is drawn and whose
name appears on the shipping tag, In
order that the identity Of the pur-
chaser and the goods Intended for
him may both be clearly determined
Where these conditions are fully
compiled with, this Office holds that
The sale Is completed at the point of
Notwithstanding the quail
aed control retained by the shipper
1ntil the draft Is settled 1,
1T is necessary, of course, In or
der to avoid liability to special tax
At the place of delivery. that there
should be in every case a bona fide
order received and accepted at the
place where special tax stamp to COW,
ar sales is held.
'fAll previous rulings or decislonk
n conflict with the position herein
aiken are hereby repealed"