Johnson v. County of Los Angeles

STURTEVANT, J.

The plaintiff sued to recover four separate items of taxes alleged to have been illegally collected. The defendant filed a general demurrer, it was overruled, and from the judgment entered in favor of the plaintiff the defendant has appealed. A statement of the facts, the defendant says, is as follows.

Plaintiff at all times herein concerned was the owner of, and did business under the name, Victor Johnson & Company, as a wholesale dealer in twine, rope and cordage. He had the exclusive agency in the United States for the product of, and was under agreement to buy exclusively from, Johnson-Pickett Rope Company, a Philippine corporation, manufacturer. The twine, rope and cordage herein taxed was brought into the United States from Manila, Philippine Islands, under the following circumstances: Plaintiff ordered his stock in trade, as needed, from Johnson-Pickett Rope Company, upon its quotation of C. I. F. prices. He maintained, for the purpose, an established credit of $25,000 with Pacific National Bank of San Francisco, California. The seller filled plaintiff’s orders by shipment on the first available steamer from Manila to San Francisco, under bill of lading designating as the consignee “Order of the Pacific National Bank of San Francisco, California, ultimate destination, notify Messrs. V. Johnson and Company, San Francisco, California,” and at the same time drew its draft on Pacific National Bank of San Francisco for the price, C. I. F., San Francisco.

After plaintiff’s order of the goods herein taxed was filled and the draft therefor drawm, the seller discounted the draft with a Manila bank, a correspondent of Pacific National Bank of San Francisco, delivering with said draft the bill of lading and a policy insuring the shipment in favor of JohnsonPiekett Rope Company in San Francisco “as well as in his or their own name or names, as for and in the name or names of all and every other person or persons to whom the same

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doth, may, or shall appertain in part or in whole”. The Manila bank mailed the draft with bill of lading attached and insurance policy to Pacific National Bank of San Francisco for acceptance and payment, by the same steamer that carried the goods, if said steamer carried mail, or by the next mail-carrying steamer leaving Manila for California. Said draft, bill of lading and insurance policy, in regular course of mail, were delivered to Pacific National Bank in San Francisco, which thereupon accepted and/or paid the draft and notified plaintiff. Plaintiff appeared at the office of Pacific National Bank in San Francisco and executed a trust receipt to pay said bank the amount of the draft, plus agreed charges, within ninety days. Thereupon said bank endorsed over and delivered to plaintiff said bill of lading, with which plaintiff then obtained the goods and transported them to his warehouse in Los Angeles, where, on the first Monday of March of the two years in question, they were in storage waiting sale in the original package.