William Howard Taft

“ Speaking of the meaning of exchange, the court said (p. 474 (39 S.C.t. 163) ) :
'But 'exchange' is barter, and carries with it no implication of reduction to money as a common denominator. It contemplates simply an estimate, determined by self-interest, of the relative value and importance of the services rendered and those received. ”

“ If the bill therefor rendered by either party to the other exceeds the sum of $75,000 in any contract year, the party receiving such service is to pay to the party rendering the same the amount of such excess, provided that, in the event the services of both are in excess of $75,000 in any contract year, the party in arrears if to pay to the other party the difference between the rendered by each party to the other for such services in any contract year do not exceed $75,000, there is to be no payment by either party to the other therefor. ”

“ The tax on each such message is to be computed upon the amount of the regular established charge for the transmission of similar messages for ordinary customers, calculated at the regular fixed rate provided in the tariffs of the transmitting carrier. The questions as to whether such messages relate to the operation of the business of a common carrier and whether they are 'on line' or 'off line' are immaterial. ”

“ Pursuant to the authority vested in him by the Revenue Acts, the Commissioner of Internal Revenue, with the approval of the Treasury, promulgated article IX of Regulation No. 57 of the Treasury Department as to the proper construction of this section 500 (f) of the act of 1918, as follows: 'Messages Transmitted under Contract.-Where, by contract, a telegraph, telephone, radio, or cable company agrees, in consideration of the payment of a lump sum or of the performance of services, to transmit messages on frank, such messages are subject to the tax imposed by this section (500 (f) ) of the act. ”