Document: 337 U.S. 662 69 S.Ct. 1264 93 L.Ed. 1613 INTERSTATE OIL PIPE LINE CO.v.STONE, Chairman State Tax Commission. No. 287. Argued Jan. 13, 1949. Decided June 20, Rehearing Denied Oct. 10, See 70 32. Appeal from the Supreme Court of Mississippi. Mr. Phelan H. Hunter, Tulsa, Okl., for appellant. J. Sumrall, Jackson, Miss., appellee. Justice RUTLEDGE announced judgment and following opinion, in which BLACK, DOUGLAS MURPHY join. 1 This appeal questions power Mississippi, as affected by commerce clause, to impose a tax measured gross receipts operation pipe line wholly within state. 2 Appellant is Delaware corporation has qualified do business Mississippi foreign corporation. It owns operates lines are used transport oil lease tanks various fields loading racks adjacent railroads elsewhere state.1 From these pumped into railroad tank cars shipment outside If there no available stored near racks. But such delays usually short duration never exceed week, according appellant's uncontradicted statement. When delivered appellant accompanied shipping orders producer or owner directing that be transported out-of-state destinations. There refineries through bill lading point origin at destination ships rail agent on bills showing shipper, shipper indicating specified issue paid rate per barrel specific its tariff2 gathering rack an additional charge cars. 3 The chairman Commission, appellee, levied against years 1944, 1945 first half 1946, sum $20,296.36, transporti g platforms, pursuant sections Code, Miss. 1942, Ann., tit. 40, c. 3, §§ 10105, 10109 (Supp. 1948), provide: 4 '10105. hereby shall collected annual privilege taxes, amount volume done, persons, account activities, amounts determined application rates values, income, proceeds sales, case may be, follows (see following):' 5 '10109. * Upon every person engaging continuing this state operating transporting compensation hire one another natural gas artificial pipes conduits state, likewise tax, engaged in, equal two cent income business. 'There excepted determining measure imposed section so much thereof derived conducted between other states United States, countries prohibited taxing under constitution States America. *'3 6 Commission sustained assessment. trial court dismissed declaration seeking review Commission's action. affirmed judgment, overruling contention because was conducting interstate therefrom could not without offending clause Federal Constitution. 203 715, 35 So.2d 73. 7 supreme held points intrastate rather than commerce, therefore 'merely local activity. doing business, percent matter convenience.' page 81. 8 contends fact construed lines. premises, together with major premise can concludes constitutionally imposed. 9 We pause consider whether for, even if we assume it is, involved case. Further, find necessary dispute statute imposing solely upon 'local activities 'maintaining, keeping repair, otherwise manning facilities" situated Memphis Gas Co. v. Stone, 335 80, 92—93, 68 1475, 1481, 92 1832, themselves, Central Greybound Lines Mealey, 334 653, 1260, 1633. While course bound constructio given highest State,4 concerned practical challenged statutes, their descriptive labels.5 10 invalidated Constitution merely because, unlike attacked supra, imposes 'direct' 'privilege' commerce.6 Any notions contrary should have survived Maine Grand Trunk R. Co., 142 217, 12 121, 163, 994, flatly rules bar. That 'an excise (measured apportioned receipts), exercising franchises State.'7 decision been approved recently controlling Greyhound 658, 663, pages 1263, 1266, 1633, permitted New York bus line, provided mileage traveled Mealey distinguished saying only itself, taxes long regarded cases supposed support proposition invalid clause.8 11 Since all carried due process objection tax.9 does discriminate favor competing like character.10 nature subject taxation makes apportionment unnecessary; attempt activity Missi sippi's borders. No repeat tax.11 For reasons invalidate tax. affirmed. 13 Affirmed. 14 BURTON, concurring. 15 I join affirmance but opinion rendered it. 16 concur ground that, such, valid below, 73, had authorized State, Code Ann. (1942), and, stated court, believe neither nor present instance violated States. On basis, here validity commerce. 17 REED, whom CHIEF JUSTICE, FRANKFURTER JACKSON joint dissenting. 18 Mississippi's effort collect 'operating line' upheld separately expressed theories. One, taxed though carrying intertate operations, permissible. As each theory effect far beyond particular case, think advisable our disagreement both. 19 demanded, now trying recover, computed common carrier platforms producing intra- At said 'had pumping machinery equipment transportation manner hereinbefore set forth *.' Interstate Oil Pipeline 75. three members Natural 1832. question gives indication purpose. thus differs widely consideration definition 'doing business.' Stone 201 670, 29 268, 270. did apply reaching across conclude mean words indicate § incidents apart flow Cf. Coverdale Pipe Line 303 604, 58 736, 82 1043. Such interpretation would inconsistent nonliability lines, admittedly said, emphasizes view character permissible 'engaging line.' 10109.1 considered taxability light Coe Town Errol, 116 517, 475, Champlain Realty Brattleboro, 260 366, 43 146, 67 309, 25 A.L.R. 1195. 20 First. facts, 10105 statute, income—of meaning binding Court.2 A federal once emerges—whether racks, both being transportation. decide ourselves undisputed facts record.3 Our inquiry then must oil, commerce.4 21 In absence rule written enacted Congress determine what intrastate, courts required transportation, became reach judicial conclusion. decided ago Daniel Ball, Wall. 557, 999, navigation waterway single disconnected any system leading states, carriage freight destined received places made boat regulation Congress.5 wording precise marks change movement difficult. dealt Hampshire logs moved her forests place readiness convenience owner, taxable. preliminary transportation,6 deliberate detention await suitable time line. Kelley Rhoads, 188 1, 6, 23 259, 261, 47 359. where intentional delay, they use 'harbor refuge,' floatage began when were put water. 1195.7 Incidental dealings moving commodity break journey.8 Recently 'split' means interstate. Capital Transit 325 357, 363, 65 1176, 1179, 89 1663. traveler went District Columbia via streetcar terminal different nearby Virginia. transportation.9 22 Comment several precedents might thought definite marking beginning appears above cases. These so-called casual incidental movements immediately preceding recognized They referred haulage consignment carriers. involves vehicles carry passengers terminals movement.10 An int rstate journey end. Common sense rejects extension traveler's front door producer's farm factory order effect. exact limits fringe situations uncertain.11 view, however, goes delivery Interstate, carrier, his tender shipment. offer, accepted, form covering destination, route tariff made. placed stream will cross regular instructions, conductor prior movement, car commerce12 instructions after transit loading. delivers billing purposeful delay carriers begun. accords phases commerce.13 significant. true diverted crossing cannot until diversion given. begun continues restored mass property whithin termination Joy 286, 1075. 24 Second. percentage subdivision expounds arguments conclusion committed move interpreted laying eeping repair discussed opinions undecisive 1482, filed asserting petitioner notwithstanding entire exacted actually include portion costs field tanks—to destination—the refinery. pipe-line clear fairly part 26 Phrased terms historically deemed unconstitutional. abound statements itself immune taxation. grant. '* right citizen (and corporation) entitled exercise laws States; *'. Crutcher Kentucky, 141 47, 57, 851, 853, 649; International Textbook Pigg, 217 91, 30 481, 54 678, 27 L.R.A.,N.S., 493, Ann.Cas. 1103. hold condition precedent also levy privilege, franchise actual admission state.14 Ozark Corp. Monier, 266 555, 45 184, 439; Alpha Portland Cement Massachusetts, 268 203, 477, 916, 44 1219; Anglo-Chilean Nitrate Sales Alabama, 288 218, 53 373, 77 710, Southern 301 148, 153, 57 696, 698, 81 970.15 decisions reached spite them sought connections corporate taxpayer Thus capital stock surplus employed proportion 'that assets bears wherever located' (266 185); value 'corporate excess' commonwealth (determined Ozark) net commonwealth' (268 477) (also Ozark); recent pronouncement limitation power. Aero Mayflower Com'rs, 332 495, 167, 99, motor stressing 'affirmatively laid using state's highways' 'the p. 504, 172, 99. 88, note 1479, Where conducts well former permissible.16 frequently although attributable business.17 28 growth more brought responsibilities originated. Producers either directly middlemen independent dealers distribute resources, agricultural manufactured products nation-wide scale. Transportation runs All called give governmental services commerce—service those who profit maintenance. congressional direction permit nondiscriminatory facilities, production therefrom. Through payment protection encouragement Joseph Carter & Weekes Stevedoring 330 422, 429, 815, 819, 91 993, cited. 'apportioned State.' 1633.18 Notwithstanding wide latitude connected see allow itself. 993. financial burden. Other equally burden same result obtained levying appropriately leave refuse bars fair discriminatory. commented 18, inapposite attempted Trunk, concerning Maine, reconciled later notes 17, supra. method approval 31 Control passed hands welded Federation Nation So forbidden on, toll similar borne So, susceptible taxation, protected exactions aimed it, how nondiscriminatory. enactments activities. gets advantage over anything furnished pays nothing doesn't possess, 32 free access markets Harvester Evatt, American Manufacturing City St. Louis, 250 459, 39 522, 63 1084. prohibited, remains Yet bear cost facilities protections furnishes allows freedom grants states. 33 reversed. gathers trunk shipments kind. covered tariffs published Commerce Act amended, 49 U.S.C. 1(1), 1(3), U.S.C.A. 1(1, 3), 6. provisions franchise, ad valorem involved. preclude exacting based. E.g., 85, 1477, Minnesota ex rel. Pearson Probate Court. 309 270, 273, 60 523, 525, 84 744, 126 530; Guaranty Trust Blodgett, 287 509, 513, 244, 245, 463. Dept. Treasury, 322 340, 346, 347, 64 1019, 1022, 88 1313; Nelson Sears, Roebuck 312 359, 61 586, 588, 85 888, 132 475. concurring Freeman Hewit, 329 249, 274, 280, 265. Nothing suggests explanation hazarded Holmes Galveston, S.A.R. Texas, 210 226, 638, 639, 52 1031, lieu taxes. copy reprinted margin Reports discloses 'in railroad, stock,' except cities towns buildings owned railroad-owned 'lands fixtures' way. 217—218, n. 994. Western Live Stock Bureau Revenue, 250, 255—257, 546, 548, 549, 823, 115 944; Concurring 264—266, 282, 283, cited discussions out, most invalidating explicable apportioned. cf. cases, involve standard receipts: 710. Nippert Richmond, 327 416, 423—424, 66 589, 590, 90 760, 162 844; Wisconsin C. Penney 311 435, 444—445, 246, 267, 130 1229, separate 352—353, 1032, 1313, Hewit. 271, 265; 96, 1483, Best Maxwell, 454, 334, 275; Hale Bimco Trading 306 375, 59 526, 83 771; Guy Baltimore, 100 434, 743. Gwin, White Prince Henneford, 305 439 440, 325, 327, 328, 272; Adams Mfg. Storen, 304 307, 311—312, 913, 915, 1365, 117 429; 944. 'Hence, designed purpose ultimate passage Most assuredly, company justified installing shipment, here.' 77. 970; Railroad Comm'rs, 499, 169, determination rejected palpable evasion avoiding ruling law. Union Pac. Public Service Comm'n, 248 67, 24, 131; Appleby York, 271 364, 379, 46 569, 573, 992; Milk Wagon Drivers Meadowmoor 287, 294, 552, 836, 1200. 154, Hooven Allison 324 652, 870, 873, 1252. Caldarola Eckert, 155, 158, 1569, 1570, 1968; Standard California Johnson, 316 483, 62 1168, 1169, 86 1611. problem differentiation 'in' 'affecting' applies Schechter Poultry 295 542, 55 837, 848, 79 97 947; McLeod Threlkeld, 319 491, 1248, 87 1538. 'So she goods Michigan however limited been, was, went, legislation Congress. She instrument commerce; whenever article trade another, commenced. agencies commodity, some acting entirely respect affect transaction.' 565, 999. 'What already relation intended exportation seems us sound subject, namely, cease general jurisdiction, usual way, shipped, entered started continuous journey. begin articles shipped other. carts vehicles, floating them, depot commence, work, performed putting preparation Until launched way fixed certain. sold disposed out Carrying farm, forest interior property, purpose, true, exportation. final altogether fieri, certain thing.' 527, 528, 478, 479, 715. 'The immunity movable discriminative unless uninterrupted clearly immune. doubt arises interruptions journey, complete control during passage. promote safe convendient transit, continuity trip broken. words, factors situation. Chief among intention he retains agency effected, occasion interruption levied.' 376, 377, 149, Comm'n 284 41, 43, 62, 76 156 (reduction pressure metering gas). 'As previously pointed twice day 15,000 government employees Virginia homes four systems. Transit's buses streetcars. Their travel hours day, special rush hour carriage. work boarded home, ended alighted going work. returning home. True, broken termini buses, stepped vehicle another. commonly accepted concept, And Transit, combination rates, District, Virginia, residences back again taken segments, total 'through route." Detroit, Haven Milwaukee 167 633, 986, 42 306; Pennsylvania Knight, 192 21, 202, 48 325; Yellow Cab 1560, 2010. 232—233, 1567, 1568, 2010; Parker, 326 60, 71, 1490, 1495, 2051, Philadelphia Reading Hancock, 253 284, 285, 40 512, 907: duties deceased took him Pennsylvania; related coal mines. injured belonged crew train loaded Locust Gap Colliery Summit Yard, miles away. Pennsylvania. appeared instruction cards memoranda clerk mine. Each number contained code letters load state.' Dahnke-Walker Bondurant, 257 106, 239; Lemke Farmers Grain 258 50, 458; Walling Jacksonville Paper 317 564, 567, 332, 335, 460. perceive difference purposes insofar treated identical concerned. taxes; labeled discussion Reed, J., People 26, Com'n 156. Beeler, 315 649, 857, 1090; Ford Motor Beauchamp, 308 331, 304; Atlantic Refining 302 22, 75, 24; Pacific Tel. Telegraph 297 403, 56 80 105 1; collection 11, 36—56. 444, 390; Lumber Com'r Tax'n, 298 533, 887, 1328; Matson Nav. Bd. Equalization, 441, 553, 791. followed prolonged controversy proposition, e.g., 329, 924, report question, Holmes' treatment 38, Weekes, 427, 5, 7, 818, 255, Powell, More Ado about Gross Receipts Taxes, Harv.L.Rev. 501, 747, et seq.; Dunham, Taxes Transactions, Col.L.Rev. 211, 220 seq.

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