J. G. Shotwell v. United States

This is an appeal from an adverse judgment in a suit by appellant for the refund of taxes. The taxes were exacted by the United States under purported authority of § 3475 of the Internal Revenue Code of 1939, as added by § 620(a) of the Revenue Act of 1942, 26 U.S. C.A. § 3475, relating to the transportation of property. In relevant part this provision reads:

There is no dispute concerning the facts of the case. In 1948 the United States was engaged in the construction of the McNary Dam on the Columbia River. It entered into an arrangement or contract with appellant to excavate and transport coarse and fine gravel from beds owned by the government to stockpiles located at the site of the dam. The material was ultimately to be used by the general contractor in charge of building the McNary structure. The gravel beds were located on government-owned Berrian Island, which is some five miles upstream from the dam site. The actual hauling of the gravel was let by appellant to a subcontractor, who was paid 40 cents per ton for his services. All the land, including the dam site, Berrian Island, and the land between, was government owned. The gravel was dumped at the dam site in…