Interstate Commerce. Effect of Issuance of Bill of Lading Reserving Title to Seller in Making Obviously Local Transaction Interstate Commerce

1930 ◽  
Vol 16 (8) ◽  
pp. 848
Keyword(s):  
Interstate Commerce ◽  
Bill Of Lading ◽  
Local Transaction

Constitutional Law in 1929–30: The Constitutional Decisions of the Supreme Couet of the United States in the October Term, 1929

1931 ◽  
Vol 25 (1) ◽  
pp. 73-102
Author(s):  
Robert E. Cushman
Keyword(s):  
United States ◽  
Constitutional Law ◽  
The United States ◽  
The State ◽  
Interstate Commerce ◽  
Bill Of Lading ◽  
Local Taxation ◽  
The Supreme Court ◽  
Constitutional Decisions ◽  
Oil Company

The Supreme Court continues its century-long task of drawing the line that separates commerce which is interstate or foreign from that which is local. The realistic nature of the test which it uses is made clear in two cases decided during the present term. In Superior Oil Company v. Mississippi ex rel. Knox, the plaintiffs, by a cleverly devised arrangement of technicalities, sought to make it appear that they were selling gasolene in interstate commerce. They hoped thus to escape the payment of the tax of three, and later four, cents a gallon imposed by Mississippi law upon the sale of gasolene within the state. The device used was as follows: The plaintiffs sold oil and gasolene to fish packers in Mississippi and delivered it to them at their wharves. The packers loaded this onto their own boats and sent it to a point in Louisiana where they in turn delivered it to shrimp fishermen who used it in fishing. The fishermen brought back their catch and sold it to the packers and were charged for the oil and gasolene. In each case the oil company gave the packers a bill of lading stipulating that the gasolene remained the company's property until delivered to the consignee's agent at the point of destination. In other words, a Mississippi seller deliberately takes gasolene outside the state of Mississippi in order to deliver it to a Mississippi buyer in the expectation that the transaction will have the appearance of interstate commerce and escape local taxation as such.

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