Bacon v. Illinois
In Bacon v. Illinois, 227 U.S. 504 (1913), the grain which was taxed had been shipped by the original owners, who were residents of southern and western States, under contracts for its transportation to New York and Philadelphia and other eastern cities, with a reservation to the owners to remove it from the cars at Chicago for certain temporary purposes "or change the ownership, consignee or destination thereof."
The grain, while in transit, was purchased by Bacon, he succeeding to the rights of the vendors. Upon arrival of the grain, at Chicago he exercised the right to remove it from the cars to his private elevator to avail himself of the privilege reserved.
The privilege being exercised, he turned the grain over to the railroad companies for transportation in accordance with original contracts. After commenting upon the power he had over the grain while in Chicago, the Court said (p. 516), "He had established a local facility in Chicago for his own benefit and while, through its employment, the grain was there at rest, there was no reason why it should not be included with his other property within the State in an assessment for taxation which was made in the usual way without discrimination." For this conclusion cases were cited. It was further said (p. 517), "The property was held within the State for purposes deemed by the owner to be beneficial; . . ."