Banker Brothers Co. v. Pennsylvania, 222 U.S. 210 (1911)

Banker Brothers Company v. Pennsylvania


No. 72


Argued November 17, 1911
Decided December 4, 1911
222 U.S. 210

ERROR TO THE SUPERIOR COURT
OF THE STATE OF PENNSYLVANIA

Syllabus

The relation of vendor and vendee, and not that of principal and agent, exists where the manufacturer sells goods to another under exclusive contract and delivers goods only on payment of draft attached to bill of lading.

In this case, held that goods manufactured in another state and delivered only in pursuance of contract, after payment of draft attached to bill of lading, are at rest and subject to the laws of the state while in the hands of the consignee before delivery by him to a purchaser from him, notwithstanding the consignee only ordered them after a contract with the purchaser had been made.

Where the relation of principal and agent exists between one selling goods in one state which are manufactured in another state and the manufacturer, sales made by the former within his own state are not interstate commerce transactions, but are subject to the taxing power of the state.

Where the transaction of sale of an article manufactured in another state is wholly intrastate, as between vendor and vendee, it does not become interstate and immune from state taxation because the purchaser pays freight from the place of manufacture or because the purchaser obtains a warranty direct from the manufacturer.

The facts, which involve the constitutionality of a statute of Pennsylvania taxing sales of automobiles, as enforced in this case, are stated in the opinion.

The facts are stated in the opinion.