Document: 354 U.S. 457 77 S.Ct. 1344 1 L.Ed.2d 1485 Lloyd MOREY, Auditor of Public Accounts the State Illinois, Latham Castle, Attorney General and Benjamin S. Adamowski, State's Cook County, Appellants,v.George W. DOUD et al., Doing Business as Bondified Systems, al. No. 475. Argued April 24, 1957. Decided June Mr. William C. Wines, Asst. Atty. Gen. Chicago, Ill., for appellants. G. Kent Yowell John J. Yowell, appellees. Justice BURTON delivered opinion Court. This case concerns validity a provision in Illinois Community Currency Exchanges Act, amended,1 excepting money orders American Express Company from requirement that any firm selling or issuing must secure license submit to state regulation. The objection raised is this exception results denial equal protection laws, guaranteed by Fourteenth Amendment Constitution United States, those who are subjected requirements Act. For reasons hereafter stated, we hold Act invalid applied them because discriminatory exception. 2 appellees Doud, McDonald Carlson, partners doing business Derrick, their agent. partnership has an exclusive right sell 'Bondified' directly through agents.2 It contemplates these agents principally engaged operating retail drug grocery stores. Derrick proprietor store operates agency store. 3 Fearing enforcement against provisions four individuals instituted suit States District Court Northern appellants, State, County. complaint alleged violated Equal Protection Clause it unlawfully discriminated complainants favor Company. An injunction was sought. Since attacked statute under heard three-judge Court, pursuant 28 U.S.C. §§ 2281, 2284, U.S.C.A. 2284. 4 After hearing evidence, dismissed on ground lacked jurisdiction determine constitutional question absence authoritative determination Supreme Illinois. Doud v. Hodge, 127 F.Supp. 853. On appeal, held erred dismissing lack jurisdiction, remanded 350 485, 76 491, 100 L.Ed. 577. 5 remand, considered merits evidence previously heard, unanimously were entitled relief 146 887.3 decree enjoined appellants enforcing so long they engage only orders. came here direct appeal § 1253, noted probable jurisdiction. Morey 352 923, 224, 159. 6 During early 1930's, closing many banks Chicago area led development simple banking facilities called currency exchanges. principal activities exchanges cashing checks fee fact went into without adequate capital sufficient safeguards protect public resulted enactment 1943. 7 its amendments provide comprehensive scheme licensing regulation operation community exchange made crime. 32. applicant specified information pay investigation $25. 34. A cannot be issued unless determines issuance will 'promote convenience advantage which proposed conducted * *.' 34.1.4 surety bond between $3,000 $25,000, insurance policy $2,500 $35,000 filed. 35, 36. annual $50 required. 44. 8 licensed maintain minimum available cash uses purposes business, plus amount liquid funds demand all outstanding issued. 37. Each entity, financed separate unit, not department another business. No 'hereafter first time shall share room with other trade profession nor occupy there access occupied profession.' 38. Only one place may maintained license, although more than licensee. 43. Annual financial reports submitted duty investigate each at least once year. $20 paid day part thereof investigation. 46. 9 following definition 'community exchange' crucial case: 10 "Community means person, firm, association, corporation, except incorporated laws National Banks organized fixed permanent service of, providing for, checks, drafts, evidences acceptable such exchange, charge consideration, his name, (other Post Office orders, order(s), Postal Telegraph Western Union orders), both businesses, performing foregoing services.' (Emphasis supplied.) 31.5 11 As concededly come within exchange,' druggist agent subject regulatory Consequently, since bars sale precluded establishing outlets stores, unable Even if establishes show 'convenience community' propose do promoted licenses them. 34.1. Finally, have inspection fees required policy. 12 Company, hand, excepted, relieved requirements, appears exempt unincorporated joint stock association 1868 New York, conducts world-wide includes sells substantially same manner contemplated partnership, authorized located sold legally stores established regard advantage' operate. need file bonds policies State. 13 In determining constitutionality Act's application light start proposition 'prohibition goes no further invidious discrimination.' Williamson Lee Optical Oklahoma, 348 483, 489, 75 461, 465, 99 563. rules testing discrimination been summarized follows: 14 '1. clause does take power classify adoption police but admits exercise wide scope discretion regard, avoids what done when reasonable basis therefore purely arbitrary. 2. classification having some offend merely make mathematical nicety practice inequality. 15 3. When law question, facts reasonably can conceived would sustain it, existence enacted assumed. 4. One assails carry burden showing rest upon basis, essentially arbitrary.' Lindsley Natural Carbonic Gas Co., 220 61, 78—79, 31 337, 340, 55 369. 16 To add caution 'Discriminations unusual character especially suggest careful consideration whether obnoxious provision.' Louisville & Electric Co. Coleman, 277 32, 37—38, 48 423, 425, 72 770; Hartford Steam Boiler Inspection Insurance Harrison, 301 459, 462, 57 838, 840, 81 1223. 17 creates statutory class sellers company, Express, excepted class. There 'American Company.' If upheld, cast—an particular entity generic category. 18 purpose clearly dealing exchanges.6 Because enterprise unquestioned solvency high standing, argues legislative reasonable. contends special characteristics justify aimed local companies business,7 position complain about competitive disadvantages 'Fourteenth hazards competition,' citing Hegeman Farms Corp. Baldwin, 293 163, 170, 7, 9, 79 259. 19 That require every apply truism. example, where size index evil directed, discriminations large small permissible.8 Moreover, repeatedly recognized 'reform step time, addressing itself phase problem seems most acute mind.' based differences related found.9 Smith Cahoon, 283 553, 51 582, 1264, involved motor vehicles, highways carriers hire, furnish injuries received negligence operations. Acts Fla. 1929 c. 13700. vehicles carrying products. protecting could support products like farm produce regulated groceries. "Such anything relation made." Id., page 567, 587. 20 Of course, distinctions treatment entities activity justified genuinely different involved.10 even name.11 But 'discrimination differences.' 463, case, permitted mutual act salaried resident employees, excluded privilege, Clause. 21 principles controlling cases, supra, applicable here. requiring Auditor, clear intended afford continuing protection. conform purpose. apparently rests hypothesis unnecessary regulate sales. Yet sales, virtue exception, continue unregulated retains present characteristics. competing though are, become, identical now has. blanket takes account distinct possibility themselves less establishments responsible institution minimize buys relies reliability agents. 22 effect create closed singling out company sense converse Cotting Kansas City Stock-Yards 183 79, 114 115, 30, 44, 46 92. See also, McFarland Sugar Refining 241 36 498, 60 899. stockyard Although discriminators creating upheld,12 violate where, face, 'an attempt give economic given arbitrary date enter industry after date.' Mayflower Farms, Inc., Ten Eyck, 297 266, 274, 56 457, 80 675. granted differential price dealers milk before 10, 1933. 23 Unlike others barred establishments. successfully ability depends advantage.' Perhaps had already community. And secured, licensees investigatory purchase policies—costs bear.13 far-flung impact affairs competitors being invoked general competition. roots discrimination. 24 Taking factors conjunction—the remote relationship characteristics, creation named accompanying advantages—we deprives laws.14 25 urges unconstitutional, should remitted courts severed severability clause. 56.3. However, procedure otherwise appropriate,15 doom indicated rather severable.16 also court clean hands demonstrated imminence irreparable injury, hence equitable relief. These arguments adequately disposed Court.17 26 judgment affirmed. 27 Affirmed. BLACK, dissenting. 29 provides state-wide plan irresponsible insolvent specifically exempts Company's because, recognizes, 'is standing.' I agree exemption denies actual potential meaning Amendment. recently '(t)he prohibition here, whatever think legislation, known test unknown responsibility hardly 'invidious.' Unless legislatures plainly unreasonable, then citizens regulating boundaries seriously impaired. feel necessary express again my use restrict narrowly over domestic affairs.1 30 viewed quite differently touches involves freedom speech, press, religion, petition, assembly, specific Bill Rights. alert see constitutionally preferred rights abridged.2 involve basic liberties. believe 'invidiously discriminatory,' invalid. FRANKFURTER, whom HARLAN joins, 32 sole Constitution, prohibiting denying person 'the laws,' formulating did, usually true questions arising Clause, answer turn way conceived. judicial approach divisions applying frequent marked. is, believe, accurate summarize matter saying great divide decisions lies difference emphasizing actualities abstractions legislation. 33 complicated society becomes, greater diversity problems legislation diversities. Statutes, directed universal situations. Law reflects exist appear legislators making fit fact. Legislation empiric. addresses crude outside world neat, logical models mind. Classification inherent legislation; forbidden it. recognize marked living law; disregard practical concentrate abstract identities lifeless logic. 34 importance sharply illustrated one's view cases 770, me false leads. Both prevailed narrowest margin; evoked powerful dissents; manifest non-discriminatory abstractions. They breathe spirit Connolly Sewer Pipe 184 540, 431, 679, Colgate Harvey, 296 404, 252, 299, respectively overruled Tigner Texas, 310 141, 879, 84 1124, Madden Commonwealth Kentucky, 309 83, 406, 590. last two heeded admonition 'it important avoid extracting very language system delusive exactness Nashville R. Barber Asphalt 197 430, 434, 466, 467, 49 819. 35 facilities, drawing oldest far-reaching powers. needs protected people limited safeguarded. chose, order Noble Bank Haskell, 219 104, 113, 186, 188, 112. Just found nothing bar engaging businesses manufacturing marketing homes people, Green Frazier, 253 233, 40 499, 64 878, so, surely, prevent directly, dispensary similar mode liquor know discharging recognizes 'a standing,' wit, regretfully find myself appreciate why instead thus problem, choose allow units fraught interests regulations devised review, while finds measures control needless rational differentiation course latter contains itself, redeeming Surely distinction significance glass eye. 37 suggested retain 'its characteristics,' become 'substantially has.' What deny legislate circumstances speculatively never pass right? enough strike down justification gone. Invalidating serious ought indulged situation remotely probable, valid lose foundation. occasion deal contingency once. Regulatory sustained later, changed circumstances, unconstitutional. Compare Willcox Consolidated 212 19, 192, 53 382, Newton 258 165, 42 264, 66 538, Block Hirsh, 256 135, 41 458, 65 865, Chastleton Sinclair, 264 543, 44 405, 68 841. 38 "Legislation regulates well depend degree evil.' Heath Milligan Mfg. Worst, 207 338, 355, 356, (119), 52 236, 244. true, doubt, admitted discriminate small. index.' Engel O'Malley, 128, 138, 190, 193, 128. Neither record our own affords concluding put Office, issuers another. relieve multitudinous reliabilities vital decisively scheme. 39 Sociologically recognition obviously enjoyed Whatever none Court's fastidiously observe Brandeis, Stone, Cardozo 'sit super-legislature.' (See dissenting ill-fated 441, 299. Asbury Hospital Cass 326 207, 214—215, 64—65, 90 6.) Ill.Rev.Stat.1955, 1/2, 30—56.3. registered trade-mark owned Checks, Incorporated, Minnesota acquired holding, declined follow sustaining attack. McDougall Lueder, 389 Ill. 58 N.E.2d 899, 156 A.L.R. 1059. accepted precedent Federal Wisconsin unconstitutional statute. St.1947, 218.05. Services, Matthews, D.C., 40. Gadlin Accounts, 414 89, 110 234. Appellees Inc. 40, 43, upheld concluded authority Communications Commission commission. merged 149—150, 903—904, 1059; Willis Fidelity Deposit 345 Ill.App. 373, 384—385, 103 513, 518—519. 151, 904, 128 (exception average sum safekeeping transmission $500 depositor); N.H. H.R. People 165 628, 418, 853 railroads 50 miles length heating railroad passenger cars placing guards guard posts bridges); Miller Strahl, 239 426, 147, 364 hotels rooms hotelkeepers certain fire precautions). F. Royster Guano Virginia, 412, 415, 560, 561, 989; 37, 770. German Alliance Ins. Super-intendent Kansas, 233 389, 612, 1011 farmers' rate companies); Hoopeston Canning Cullen, 318 313, 63 602, 87 777 (different reciprocals companies). Erb Morasch, 177 584, 819, 897 ordinance limiting speed trains city); cf. Williams Mayor Council Baltimore, 289 36, 1015. Watson Maryland, 218 173, 644, 54 987 physicians practiced prior treated persons year thereto examination certificate requirements); Sampere Orleans, 166 La. 776, 117 So. 827, affirmed per curiam, 279 812, 262, 73 971 existing zoning restriction); Stanley Utilities Commission, 295 76, 1311 furnished adequate, continuous route past necessity license). note 2, costs prohibitive. Wedesweiler Brundage, 228, 130 N.E. 520, express, steamship telegraph foreign countries natural persons, firms partnerships. 'has reference character, solvency, responsibility, security, monetary incorporation, method inspection, supervision report, thing loss reason dishonesty, incompetence, ignorance irresponsibility business.' 237, 523. inf. Taylor 358 Mo. 983, S.W.2d 600. distinguished 150, 1059, earlier 'in competition' companies. Apparently competition Such Guinn 238 347, 366, 926, 931, 59 1340; Myers Anderson, 368, 380—381; 932, 935, 1349; Dorchy 286, 291, 323, 325, 686. stated 'The Assembly surely passed thought said (Western Union, Express) regulations.' statement added court's ruling invalid, 'there presumption remainder without' provision. 155, 906. law, binding 290, 324, 686; Chas. Wolff Packing Industrial Relations, 267 552, 562, 45 443, 69 785. 887, 889—890. See, e.g., dissents H. P. Hood Sons Du Mond, 336 525, 562—564, 657, 683—684, 93 865; Magnolia Petroleum Hunt, 320 208, 88 149; Adamson California, 332 46, 79—84, 67 1672, 1689, 1692, 91 1903. Cf. 1124; Louisiana. 179 92, 102; Slaughter-House Cases, Wall. 81—82, 394. Schneider 308 161, 146, 155. opinions Beauharnais 343 250, 267, 725, 736, 96 919, Feldman 322 487, 494, 1082, 1085, 1408. Kotch Board River Port Pilot Com'rs, 330 556, 910, 912, 1093, concurring Oyama 633, 647, 269, 275, 92 249.

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