Opinion ID: 1876539
Heading Depth: 1
Heading Rank: 21

Heading: validity of tax herein

Text: In Cheney Brothers Co. v. Massachusetts, 246 U.S. 147, 38 S. Ct. 295, 62 L. ed. 632 (cited in the Alpha case), involving consideration of the validity of an excise tax imposed upon seven foreign corporations, each differently situated, we have a good illustration of the principle that a state may impose a valid tax if the proper constitutional channel is selected. One of the foreign corporations involved therein was the Northwestern Consolidated Milling Company, which, like the instant taxpayer, had localized its business within the state. In upholding the validity of the tax upon this corporation, the court said (246 U.S. 155, 38 S. Ct. 297, 62 L. ed. 637): This company was incorporated under the laws of Minnesota, operates flour mills there, and sells the flour to wholesale dealers throughout the country. It has an office in Massachusetts where it employs several salesmen for the purpose of inducing local tradesmen to carry and deal in its flour. These salesmen solicit and take orders from retail dealers and turn the same over to the nearest wholesale dealer, who fills the order and is paid by the retailer. Thus the salesman, although not in the employ of the wholesaler, is selling flour for him. Of course this is a domestic business,  inducing one local merchant to buy a particular class of goods from another,  and may be taxed by the State, regardless of the motive with which it is conducted. (Italics supplied.) In the case at bar we also have salesmen who call upon the users of cement to induce them to give their business to the local dealers who handle the taxpayer's product.