A Bone to Pick with Walthers!


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What it comes down to is this. You placed a circuitous order through Walthers to ship to an LHS in Oregon because you wanted to save the California sales tax. You know, or should have known, that this type of transaction to evade California sales tax is illegal and a criminal offense. Was it worth it to risk, at minimum, a day with a Franchise Tax Board criminal investigator plus not getting the models you wanted, compared to just ordering directly from Wathers and paying the sales tax? Only you can answer this but it was your desire to save a little money that is at the base of this entire issue.
I don't think we pay Sales tax ordering direct. I serious doubt that that was the reasoning, considering he'd have to pay Oregon sales tax when buying at the dealer. :confused:
 
Josh, there is no sales tax in Oregon and Wathers does charge sales tax to California addresses. Go back through his posts and you'll see he admits evading the sales tax was the reason for placing the order as he did.
 
All of this reads as a misunderstanding of the Walthers checkout steps. If I remember correctly: when placing an order a window comes up and ask if you want to order through one of their "listed" dealers or through the Walthers Store (forget their name for it). I have always ordered through the store as it is one less company to deal with and haven't had a problem. Guess one of us could make a dummy order and see for clarification.
 
Josh, there is no sales tax in Oregon and Wathers does charge sales tax to California addresses. Go back through his posts and you'll see he admits evading the sales tax was the reason for placing the order as he did.
Oh, well then... :rolleyes:
 
Your note and info.

Say Mingo,
Thanks for insight about the WKW sales rep keeping tract of their *Authorized* dealers inventory, that something I didn't stop to think of. Also any sizable business such as WKW most certainly has to be computerized and have a huge Data Base setup for each of their authorized dealers to easily keep tract of what they've ordered in the past as well as what their current orders are now. Any large business simply just couldn't function without the use of computers and the internet.


So that all helps to substantiate my position as I received this from a WKW sales Rep verifying my order had indeed been placed with but then I get a song and dance about why my order wasn't filled?? I don't buy it and told Mr. Schmidt just that.

>>
Here's the note he wrote back to me and I quote:
Hello Mr. Smith,

Thank you for taking the time to contact Wm. K. Walthers, Inc.

Please accept our apology regarding your inability to obtain (3) of the
Model Power #490-6586 models from your dealer, The Hobby Smith. Our records indicate that you had ordered (2) on 10/14/07 (web order #342492) and (1) on 10/15/07 (web order #342510) via the Walthers web site and designated each one to be sent directly to The Hobby Smith. It is important to point out that following this procedure, it does not automatically allocate those items to the dealer. There are several reasons why we don't do this. The first is that the dealer may already have the items in stock, so allocating
them may be an unnecessary duplication. The second is that each dealer may not necessarily want to obtain the items from Walthers. They may elect to obtain some of them from another distributor. Once Walthers e-mails the
web order to a designated dealer, it is the dealer's responsibility to fill
it. Unfortunately, sir, I'm not sure how many of the #490-6586 items were
in stock at the time you placed both orders, although it appears as though
existing stock was rather limited. Regrettably, this item is completely
sold out and has been discontinued by Model Power.

I wish I could provide more immediate assistance in this matter.

Sincerely,

Tom Schmidt
Walthers Customer Service
>>

So you see he confirms that both my orders were not only received but a little farther down in his note even states they were email to their dealer so it becomes highly suspicious as to why WKW would even bother to email a dealer if they already knew they were indeed out of stock. Their inventory control most certainly would give them up to the minute or even to the second insight as to how much stock was left. Also as I stated they indeed had the exact same Loco's only with a 5 instead of a 6 for the last part number so they were indeed not out of stock except from WKW's standpoint and it is there responsibility to make good for any product sold that they allegedly are out of stock on and the other loco's could have been substituted.

In actuallity I've even found them elsewhere but not at the sale price WKW sold them to me for. They made the offer of supplying the product, I accepted, they emailed their authorized dealer of the sale which more than says they must have the three items I ordered available to deliver to the dealer and should have held the product aside rather than selling the product out from under me.

From what Mr. Schmidt states it's very plain what transpired, what reason would there be for WKW to email an order to their dealer that they knew full well they didn't have product to fulfill. It doesn't make sense at all but it sure can be twisted to make excuses.

Also what Mingo states below is that WKW most certainly uses computers to not only transmit orders but also to check available stock I'm quite sure and I be willing to be that every item shipped or purchased directly from WKW carries a BAR Code lable and is run through a scanner to not only show that's it's being sold but also keep track of stock remaining, it the only a large distributor can function.

So their saying the order I placed was transmited/emailed to their dealer so he could determine if he need to request they ship the three items [Loco's] to him and in the next breath they're saying they're out of stock?? Sure sounds like a bunch of double talk to me!!

Well I should thank all that have taken part in this effort to bring this situation to light and the information that has surfaced. I still firmly feel and believe that WKW is the responsible, indeed Mr. Schmidt's reponse more than substantiates my position, all you have to do is read between the lines and it becomes quite clear as I pointed out.


Mingo if I can offer a ear to your problem feel free to contact me.

David

Actually ..they do
Its based on the sales reps however,The WKW rep comes once a month and he is pretty cool, other times its done on the phone or direct email. He takes my friends sales and then enters it on his laptop to Walthers. Its part of the "package" of being an "authorized" dealer.
Some use paper some use a computer, it is of course up to the Dealer to decide if they want to carry a certain product or not based on turn over and etc etc etc.
My friend who owns our little town hobby shop here has had his " issues" with WKW many times in the past due to having to wait for that certain amount to be reached before the order can be placed and then hoping the item dont leave WKW inventory by the time its placed. Believe it or not we dont have to many train hobbiest around here so orders are slow.
Unfortunatly WKW has the Market and if you want the what I call Wal Mart selection of items you almost have to bow to WKW as now there established.
I am not taking sides on this post as I dont completely understand the situation.
I to am having a MAJOR issue like this for a part for my car soooo I know how you feel trus but hang in there. You part is for a model, mine is for my bread and butter.
 
Sales tax obligation.

Say Josh,
I've collected sales and use tax for years from sales I've made within Ca in my other busiensses and would be obligated to again collect from you or whomever else I did business within Ca. If I sell to someone out of the state I cannot legally collect sales and the same applies to any other company selling to an anybody in another state unless that company actually has a sales office within that other state, for example if Wathers had a sales office within Ca then they could collect Ca sales tax, but if a party buys through a dealer in another state such as betwiin myself and the oregon dealer there is no sales unless that dealer has a sales office within Ca.



Walthers can only collect

 
Yes sales was part of the reason with the dealer being out of state the same as occurres between you and WKW when they ship into AL.

David, why do you keep dancing around this issue? You admitted (I think, it's hard to tell with your tortured syntax at times) that you wanted it shipped to a hobby shop in Oregon because Oregon has no sales tax. Does Walthers collect sales tax when shipping to California or not? If so, you were attempting to evade collection of this tax by having the item delivered to Oregon, which has no sales tax. Under California law, this doesn't relieve you of the obligation to pay sales tax as a California resident receiving the shipment in California, it's just rarely enforced. The same types of items that are subject to sales tax in California are subject to use tax. For example, if your local retail store would charge you sales tax on the same type of merchandise, it would be subject to use tax if purchased over the Internet.

So, you ordered through from Wisconsin goods to be shipped to Oregon to evade the sales (or use) tax. The Oregon shop either never followed up on time to get the merchandise when there was still stock at the sale price or all the stock was sold out by the time he tried to place (or confirm) the order. He never had a firm order with Walthers until you paid and that was apparently too late. If you had simply ordered this merchandise directly through Walthers and not tried this other steps to save a few buck son taxes, you'd have your locomotives now. You are not a victim in this case. It was your actions that created the problem.
 
Truss
Dont take me wrong, Im just stating how my little towns hobby shop works{ Custom Hobbies , Wintersville Ohio}. I cant make statement now for ALL locations. Gene {recently passed} the owner ""had a constant rotation of scenery and track that sold on a regular basis and Walthers kept it stocked on a inventory basis. Rolling stock was varied I believe based on seasons and such if I remember what he told me. The specialty items people chose out of the catalogue is where he ran into inventory issues. I dont know the program the rep used but I know he was able to access WKW's inventory. Now we are all forgetting something also....FALSE inventory, not an avading company issue but a common situation all companys have even with common audits. How many times have we in our job or even went some where and something showed but yet turned out to not be in stock, this is commonly reffered to as shrinkage, this is also a factor to consider. NOW as for your indulgance with the IRS in taxes...I have nothing to say on that as I NOW NOTHING about CA or Oregon sales.
Either way..if worse comes to worse, craigslist, or ebay or a train show....just a thought
 
False and Malicious Accusations by Jim/UP2CSX

Jim,
Consider this as my first complaint letter to you.
I'm not sure just where your comming from but I take great execption to your false and malicious accusations about me doing anything illegal. Your statement claiming I intentionally evaded paying CA. sales tax, which you further exclaimed is illegal, is totally false and has no basis in fact or law!

I call on you to prove where I did anything illegal per your statement to all the other forum members. In your proof you must cite chapter, verse, and Calif. code # to substantiate your malicious and defaming statements. You can't! Buying out of state is done everyday by millions of individuals.

There are already several other member that are reading you statements believing them to be factual as the posts below confirm, at least some of them anyway, believing that I did something illegal, which is totally untrue, but none the less very dammaging to my creditability! Unless you can prove your statements I expect a full apology for your actions and statements here on the forum. Should I ever find that it has gone beyond this forum in any way I will file a very large law suit aginst you for your willful and malicious statements and actions!

You sate that I admited to, "Evaded paying Ca. sales Tax". You are putting words in my mouth by falsely claiming I said something I did not say, you also said that, "I new or should have known that is illegal". Nothing is farther from the truth than your statements which have no basis in fact or law.

In the first place there is a major difference between the words, 'Evading and Avoiding', what I was doing was avoiding and there is nothing illegal about that in any way, shape, form or fashion.

To clarify what evading means I cite this:
If I sold something to someone here in Ca. and collected sales tax from them on that sale and then didn't report that transaction to the State Board of Equalization [SBE] or send them, the SBE, the sales tax I collected on said transaction that would be EVADING paying sales tax, not as you maliciously and slanderously stated I did.

Avoiding paying sales tax is by buying out state which is done all the time by millions of individuals everyday.

I DEMAND You prove your statements by citing chapter, verse and code #.
I know you can't! BTW all codes are easily available on the web now for everyone to read.

I expect that you will furnish any code information you find so all of us here can read exactly where your comming from? You seem to be playing internet detective with my reputation and 'I DON'T LIKE IT ONE BIT IN ANY WAY' and demand your formal apology and acknowledgement you were wrong in making fales statements and the defaming allegations you did.

I, as well as others await your speedy reply!


Not to keep drawing this out, but, Walthers "shops page" says:

http://www.walthers.com/exec/page/shops



What it comes down to is this. You placed a circuitous order through Walthers to ship to an LHS in Oregon because you wanted to save the California sales tax. You know, or should have known, that this type of transaction to evade California sales tax is illegal and a criminal offense. Was it worth it to risk, at minimum, a day with a Franchise Tax Board criminal investigator plus not getting the models you wanted, compared to just ordering directly from Wathers and paying the sales tax? Only you can answer this but it was your desire to save a little money that is at the base of this entire issue.


All of this reads as a misunderstanding of the Walthers checkout steps. If I remember correctly: when placing an order a window comes up and ask if you want to order through one of their "listed" dealers or through the Walthers Store (forget their name for it). I have always ordered through the store as it is one less company to deal with and haven't had a problem. Guess one of us could make a dummy order and see for clarification.


Oh, well then... :rolleyes:


Say Mingo,
Thanks for insight about the WKW sales rep keeping tract of their *Authorized* dealers inventory, that something I didn't stop to think of. Also any sizable business such as WKW most certainly has to be computerized and have a huge Data Base setup for each of their authorized dealers to easily keep tract of what they've ordered in the past as well as what their current orders are now. Any large business simply just couldn't function without the use of computers and the internet.


So that all helps to substantiate my position as I received this from a WKW sales Rep verifying my order had indeed been placed with but then I get a song and dance about why my order wasn't filled?? I don't buy it and told Mr. Schmidt just that.

>>
Here's the note he wrote back to me and I quote:
Hello Mr. Smith,

Thank you for taking the time to contact Wm. K. Walthers, Inc.

Please accept our apology regarding your inability to obtain (3) of the
Model Power #490-6586 models from your dealer, The Hobby Smith. Our records indicate that you had ordered (2) on 10/14/07 (web order #342492) and (1) on 10/15/07 (web order #342510) via the Walthers web site and designated each one to be sent directly to The Hobby Smith. It is important to point out that following this procedure, it does not automatically allocate those items to the dealer. There are several reasons why we don't do this. The first is that the dealer may already have the items in stock, so allocating
them may be an unnecessary duplication. The second is that each dealer may not necessarily want to obtain the items from Walthers. They may elect to obtain some of them from another distributor. Once Walthers e-mails the
web order to a designated dealer, it is the dealer's responsibility to fill
it. Unfortunately, sir, I'm not sure how many of the #490-6586 items were
in stock at the time you placed both orders, although it appears as though
existing stock was rather limited. Regrettably, this item is completely
sold out and has been discontinued by Model Power.

I wish I could provide more immediate assistance in this matter.

Sincerely,

Tom Schmidt
Walthers Customer Service
>>

So you see he confirms that both my orders were not only received but a little farther down in his note even states they were email to their dealer so it becomes highly suspicious as to why WKW would even bother to email a dealer if they already knew they were indeed out of stock. Their inventory control most certainly would give them up to the minute or even to the second insight as to how much stock was left. Also as I stated they indeed had the exact same Loco's only with a 5 instead of a 6 for the last part number so they were indeed not out of stock except from WKW's standpoint and it is there responsibility to make good for any product sold that they allegedly are out of stock on and the other loco's could have been substituted.


From what Mr. Schmidt states it's very plain what transpired, what reason would there be for WKW to email an order to their dealer that they knew full well they didn't have product to fulfill. It doesn't make sense at all but it sure can be twisted to make excuses.

Also what Mingo states below is that WKW most certainly uses computers to not only transmit orders but also to check available stock I'm quite sure and I be willing to be that every item shipped or purchased directly from WKW carries a BAR Code lable and is run through a scanner to not only show that's it's being sold but also keep track of stock remaining, it the only a large distributor can function.

So their saying the order I placed was transmited/emailed to their dealer so he could determine if he need to request they ship the three items [Loco's] to him and in the next breath they're saying they're out of stock?? Sure sounds like a bunch of double talk to me!!
 
Ah heck, David and Jim. What say we just drop this thread and let things cool off, as it's going in the wrong direction. All of us have a good relationship here and let's try not to let something like this cause ill feelings amongst us.;) :)
 
Standing up for ones character.

Hi Rex,

Thank you, I appreciate your view of the situation and for trying to intervien but Jims actions and statements just went too far on supposition alone! Generally I try not to take offense but some individuals just take too much authority for granted as happened in this instant case and it wouldn't look very good to others on the forum and indeed I would think a lot less of myself if I didn't put Jim in his place.

I doubt that anybody likes to be accused of doing anything illegal especially when there is no basis for the accusation other than what he contrived.

It was his doing by making the statments he did which claimed I said things I didn't. Now let it be his undoing by providing chapter, verse & Calif code # to substantiate his statements or a formal apology to myself and all other forum members for his defaming statements about me and portraing me to everyone else as doing something illegal when he had no basis if fact or law for doing so. Which is where the slander issue comes in.

I will apologize to all the other forum members that read this or my post to Jim
as my rant was against WKW and I never dreamed something like this might transpire but life holds many twists and turns.
I would much rather be working on dismantling my old 5x7 layout to make room for my in progress, slow progress, new around wall layout in my garage rather than this stuff but a guys got to do what's required first, right?


Well Rex how's everything with yourself and railroading these days? I havn't noticed you posting very much so I guess you've been busy.

Thanks again and take care,

David Smith


Ah heck, David and Jim. What say we just drop this thread and let things cool off, as it's going in the wrong direction. All of us have a good relationship here and let's try not to let something like this cause ill feelings amongst us.;) :)
 
Trussrod.........

You might want to check out this: http://www.boe.ca.gov/sutax/isvdprog.htm
Be sure to download California publication 112 and read it. Then you can decide whether you should apologize to Jim or not.

Here in NY a purchaser is legally responsible for sales tax even if the item is purchased out of state. I am very careful to pay my sales tax for all business purchases made from out of state vendors who do not collect NYS Sales Tax. I can deduct the item usually as a business expense but if I do and get audited........??? Even though as you said thousands of items are purchased out of state by many people each year, in most states, they are still legally obliged to pay the state and local taxes on them. Do they? No. But it is part of the law that they are supposed to. Many states are starting to crack down on people who are avoiding paying sales tax by buying out of state. I have heard that e-bay records may be taken as evidence against large buyers......... That may only be a rumor, or...?????

Hope tomorrow is a better day for you!
 
Streightening out a missconception.

Hi Mingo,

Sorry for not replying back sooner.

I apreciate your help and the info you offer. Btw sorry to hear about your friend Gene.


You said: NOW as for your indulgance with the IRS in taxes...I have nothing to say on that as I NOW NOTHING about CA or Oregon sales.


Jim totally misconstrued and miss stated what I said and he doesn't know what he's talking about. If by chance you read my complaint letter to him I explained the difference between the word evading and avoiding paying sales tax. There is no crime in doing the latter but he twisted it around by claiming I was Evading paying Sales Tax. Millions of people a day buy from out of state just t avoid paying sales tax and why not if that their choice!


Oh while I'm thinking of it, did you take the shot of the Ferarri Loco you were standing on? That was a very good shot and showed some interesting details
good for those modeling current desiel.

Also what are the large lift rings/bars on the front of the deisel on either side?


QUOTE=Mingo Assist;62504]Truss
Dont take me wrong, Im just stating how my little towns hobby shop works{ Custom Hobbies , Wintersville Ohio}. I cant make statement now for ALL locations. Gene {recently passed} the owner ""had a constant rotation of scenery and track that sold on a regular basis and Walthers kept it stocked on a inventory basis. Rolling stock was varied I believe based on seasons and such if I remember what he told me. The specialty items people chose out of the catalogue is where he ran into inventory issues. I dont know the program the rep used but I know he was able to access WKW's inventory. Now we are all forgetting something also....FALSE inventory, not an avading company issue but a common situation all companys have even with common audits. How many times have we in our job or even went some where and something showed but yet turned out to not be in stock, this is commonly reffered to as shrinkage, this is also a factor to consider. NOW as for your indulgance with the IRS in taxes...I have nothing to say on that as I NOW NOTHING about CA or Oregon sales.
Either way..if worse comes to worse, craigslist, or ebay or a train show....just a thought[/QUOTE]
 
Paying sales tax and the SBE codes your quoting.

Ray,

It's been quite some time since we talked, odd you should be contacting me in reference to what transpired between Jim and myself, just how did that come about, I'm most interested?

In reference to what you posted, 'No sale transpired so it's a moot issue'.


How is it that you seem to be interviening on Jim's behalf he seem more than capable of trying to defame me before without any help so what caused you to enter the secne??


Hope you also have a good day too.



Trussrod.........

You might want to check out this: http://www.boe.ca.gov/sutax/isvdprog.htm
Be sure to download California publication 112 and read it. Then you can decide whether you should apologize to Jim or not.

Here in NY a purchaser is legally responsible for sales tax even if the item is purchased out of state. I am very careful to pay my sales tax for all business purchases made from out of state vendors who do not collect NYS Sales Tax. I can deduct the item usually as a business expense but if I do and get audited........??? Even though as you said thousands of items are purchased out of state by many people each year, in most states, they are still legally obliged to pay the state and local taxes on them. Do they? No. But it is part of the law that they are supposed to. Many states are starting to crack down on people who are avoiding paying sales tax by buying out of state. I have heard that e-bay records may be taken as evidence against large buyers......... That may only be a rumor, or...?????

Hope tomorrow is a better day for you!
 
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Work

Truss
The wide body was an engine we dumped at the Sammis plant here in town.
Known as the C30 that is a usual coal train for the power plant here and I was the assist on it.
I work out of Mingo Junction Yard and we get alot of them wide bodys in from Rockport yard in Cleveland Ohio on what is known as the river line.
The handles have numourous purposes for engine house , inspections, sand etc etc.
If your interested in some photos for modeling let me know, I take about 30 to 40 a week at work.
Here is a photo at work on a transformer train one day where I decided to do a 1/87 scale measure with a MoW truck. Ive posted before and im actually getting way off topic on this post but ill post it for ya.
Im by no means anyone to base opinions on this forum, I have no issues with ANYONE here as thats not the type of person I am. We are all human and our beliefs make us who we are... Maybe this will turn out to be a good learning experiance for us all.
NewCumberlnd.jpg
 
Gentlemen I'm locking this thread because it is getting a bit less friendly and allowing it to continue will lead only to more pointed accusations and a deteriorating friendly atmosphere.
Thank you for your contributions but in the interest of good will the thread has been locked.
 
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