Charles Evans Hughes

“ On the other hand, to pay the tax and remove the property before the aging process is completed would defeat the object of the deposit for which the statute provides, and would frustrate the purpose of a transfer of spirits in bond, which is an entirely lawful transaction. In these circumstances, the certificates-such as were here used-appropriately represent the property.
It is said that the distiller need not use his own warehouse, but may place the goods in one of he general bonded warehouses established under the act of 1894 (28 Stat. at L. 564, 565, chap. 349) . ”

“ It is a matter of common knowledge that the product is not ready to be marketed for consumption when it is drawn from the still. It must undergo an aging process, and for this purpose it is kept in store for several years. In laying the tax, Congress has taken this necessity into consideration, permitting a long postponement of the required payment, the spirits meanwhile being held in charge of the government's representative. ”

“ The appellee asserts that this would be impracticable; that no general bonded warehouse had been established in the collection district in question; that there are only twelve in the entire country, with a capacity that is extremely small in comparison with the output of the distilleries. But, aside from this, the distillery warehouse is equally recognized by law; it is 'a bonded warehouse of the United States.' If it is a fit place for storage, the distiller is not obliged to remove the spirits elsewhere. ”

“ Everyone dealing with distillers is familiar with the established practice in accordance with which spirits are held in store, under governmental control, and are transferred by the delivery of such documents as we have here. ”

“ It is argued for the appellant that one cannot make himself a warehouseman of his own goods, and isues so-called receipts to take the place of the delivery which the law requires to give effect to his sale or pledge (Security Warehousing Co. v. Hand, 206 U.S. 415, 422, 51 L. ed. 1117, 1122, 27 Sup. Ct. Rep. 720, 11 Ann. Cas. 789; Trademen's Nat. Bank v. Thomas Kent Mfg. Co. 186 Pa. 556, 65 Am. St. Rep. 876, 40 Atl. 1018) . The argument ignores the special circumstances of the case and the restrictions imposed by law upon the distiller. ”