The plaintiff in error is a corporation engaged in the business of underwriting policies of marine insurance. It brought this action to recover the amount paid as stamp taxes upon policies insuring certain exports against marine risks. The taxes were paid under the war revenue act of June 13, 1898 (chap. 448, 30 Stat. at L. 461); and the recovery was sought under the provisions of the act of July 27, 1912, (chap. 256, 37 Stat. at L. 240, Comp. Stat. 1913, § 6370), upon the ground that the tax was invalid, being in substance a tax upon exportation, and hence contrary to § 9, article I, of the Federal Constitution, prohibiting any tax or duty on articles exported from any state.
It was alleged that the policies were issued, in the following manner: Open policies were executed by the insurance company, containing an agreement that the company would insure all cargoes which the insured should ship in the foreign trade during the life of the policies, and that the shipper would procure such insurance, and from time to time would pay the premiums according to the regular rates for the particular voyages. When the shipper had a cargo of goods ready for export, 'designated and set apart from all other goods for shipment on a particular ship,' he filled up certain blank forms of declaration (furnished to him by the company) in accordance with the facts of each case, and delivered the declaration to the company at or about the time of the sailing of the vessel with the cargo on board. In many cases the declaration was not delivered until the vessel had sailed. Upon receiving each of the declarations, the company entered the amount and rate of the premium, and delivered to the shipper a certificate of insurance by which the goods described were insured for the voyage and upon the vessel specified. It was further averred that bills of exchange were drawn by the exportors on the consignees of the merchandise for the purchase price, and that the bills of lading and the certificates of insurance were by custom required as the necessary documents to enable the exports to be made and the bills to be discounted; and that these documents were actually forwarded to the foreign country to which the goods were shipped. At the end of each month, the company rendered to the insured a bill for the premiums which had accrued in accordance with the declaration; and, monthly, the company presented to the collector a book containing a summary of the premiums earned in respect of such insurance, and purchased the stamps required by the war revenue act. By direction of the collector, in accordance with the method prescribed for mutual convenience by the Commissioner of Internal Revenue, these stamps were affixed to the book, and then canceled. In each case, the goods were in fact exported, and were insured during their transit by sea to the foreign ports. The claim for the refunding of the taxes was duly presented to the collector, it was alleged, under the act of 1912, and was transmitted to the Commissioner of Internal Revenue, who refused payment.
The government demurred upon the grounds that the court had no jurisdiction of the defendant, or of the subject of the action, and that the petition did not state facts sufficient to constitute a cause of action. The district court sustained the demurrer, holding the tax to be a valid one. 217 Fed. 685. Judgment was entered dismissing the petition, and this writ of error has been sued out.