L.A. Warehouse Co. v. Am. Distilling Co.

This is an action by a bailee to recover from the bailor-owner moneys expended by the former in payment of an excise tax on the latter’s property. The judgment in favor of the plaintiff-bailee must be sustained.

The property involved was 2092.5 gallons of gin; exclusive of the tax it was worth 28 cents per gallon. The tax was the United States Internal Revenue excise on distilled *404spirits; it was imposed at the rate of $2.25 a gallon. Under the law (Int. Rev. Code, § 2800(a) (1) and (e), U.S.C.A., Title 26) such tax attached to the gin “as soon as this substance [came into] . . . existence as…