Walker v. STATE EX REL. STATE BOARD OF EQUALIZATION

[839]

PEEK, J.

Plaintiffs appeal from an adverse judgment in an action instituted by them to recover motor vehicle transportation license taxes assessed against them by the defendant Board of Equalization and paid by plaintiffs under protest.

The facts show that Mutual Plywood Corporation, which we will refer to as “Mutual,” agreed to purchase from Emmerson and Berg Lumber Company certain standing timber. Shortly thereafter Mutual entered into a logging contract with Joe Walker, now deceased, who was one of the plaintiffs herein. The purpose of the logging contract was stated to be “. . . for delivery of the logs resulting from said logging operation to Mutual or its order. ’ ’ The contract further provided that “for his services . . . Walker shall be paid . . . seventy-eight per cent (78%) of the fair market value of each grade of logs produced, at the time of delivery to Mutual, or for its account.” The contract also provided that Walker would finance and conduct the entire logging operation, provide for all logging equipment and pay wages and other expenses incident to the logging operations including the construction of roads, a storage pond and facilities for handling, selecting and loading. In the event Mutual requested Walker to keep logs in storage for its benefit, it agreed to pay therefor a stated price per thousand, and for deliveries outside the designated delivery zone, Walker was entitled to receive additional compensation. Paragraph 14 of the contract specifically provided: “Nothing herein contained shall be deemed to vest in Walker or to convey to Walker any right, title, claim or interest in or to the logs or timber or timberlands which are the subject to this agreement, it being the intent that as between the parties hereto ownership of and title to all such logs and timber and timberlands shall at all times be and remain in Mutual.” Paragraph 16(e) provided that at Mutual’s option, Walker was to indemnify and insure it against fire and also to indemnify and insure it against loss or damage to logs in transit. Paragraph 17 provided that all taxes imposed upon the logs, timber and timber lands which were the subject of the agreement, as well as any cutting and severage taxes, were to be paid by Mutual. The contract further declared that Walker was an independent contractor in the conduct of his operations.

Pursuant to the contract, plaintiffs delivered to Mutual all “peeler logs” for its own use in manufacturing plywood.