Cheatham Chemical Co. v. Cheatham

The petition set forth a cause of action based on the bond given by the defendant to indemnify the plaintiff and others against any “contingent liability that may now exist against either Cheatham Manufacturing Company or Cheatham Chemical Company, which liability is not reflected by any entry on the books of the said companies, except that contingent liability on behalf of the Federal. Government arising from the claim of the Federal Government for additional excise taxes under the manufacturers-sales tax,” etc. Clearly the taxes which the plaintiff was compelled to pay in 1938 were…