Earle, Collector of Internal Revenue v. Babler Earle, Collector of Internal Revenue v. Conley (Two Cases)

ORR, Circuit Judge.

In these actions appellees have been awarded judgments for various amounts assessed and collected from them as transportation taxes under § 3475 of the Internal Revenue Code, 26 U.S.C.A. § 3475. 1

Appellees, who were general contractors, undertook the construction and resurfacing of certain roads and airports, which work required the transporting of bulk construction materials from stockpiles and quarries to the job sites. To carry out this transportation, appellees entered into verbal agreements with various owners of trucks for the use of their trucks on an hourly, load or…