James Clark McReynolds

“ The tax is laid upon each pound of manufactured tobacco irrespective of intrinsic value or price obtained upon sale. The goods may be disposed of at any price without affecting the amount of the tax; that does not vary. Always the manufacturer must pay 18 cents upon each pound-no more, no less. True the limit of time for making payment is when the product is sold or removed, but this is a privilege designed to mitigate the burden; it indicates no purpose to impose the tax upon either sale or removal. ”

“ And the Court held that operation of the hospital by the Commonwealth is not the performance of an essential governmental function; that such operation is not of a strictly governmental character, since it does not 'embody some kind of control over persons or things which can be exercised only by a sovereign power.' And for that reason the conclusion was that no immunity from federal taxation had been shown. ”

“ In January, 1932, the company received from Massachusetts an order to deliver 96 pounds of tobacco to the Boston State Hospital, an institution owned and maintained by the Commonwealth. The company complied by shipping from its bonded warehouse four packages to which revenue stamps amounting to $17.28 had theretofore been affixed. This was distributed to patients without charge. Hospital patients, when able, pay for treatment. The hospital performs useful public service. A bill for $30.62-price of the tobacco including tax-was paid by the Commonwealth. ”