Document: 330 U.S. 422 67 S.Ct. 815 91 L.Ed. 993 JOSEPH, Comptroller of City New York, et al.v.CARTER & WEEKES STEVEDORING CO. SAME v. JOHN T. CLARK SON. Nos. 29 and 30. Reargued Nov. 12, 1946. Decided March 10, 1947. Mr. Isaac C. Donner, York City, for petitioners. Samuel M. Lane, respondents. Justice REED delivered the opinion Court. 1 These two writs certiorari bring before this Court contentions in reg rd to application respective respondents, Carter Weekes Stevedoring Company John Clark Son, general business tax laws covering, when both cases are considered, years 1937 1941, inclusive.1 The character taxes issue will appear from a section, set out below, local law imposing 1939 1940.2 taxpayers liable also income ad valorem State York. Both respondents corporations engaged stevedoring. For these cases, may be considered as consisting only taking freight convenient place on pier or lighter wholly within territorial limits storing it properly safety handling outgoing vessel alongside, similarly unloading its arrival. vessels moved interstate foreign commerce, without call at any other port We do not find necessary consider separately commerce. Commerce Clause covers both. 2 Through statutory proceedings unnecessary particularize, determined that were percentage upon entire gross receipts above activities question under provisions which reference has been made. Review determinations was had by Supreme County, Appellate Division. annulled authority Puget Sound Tax Commission, 302 90, 58 72, 82 68; Matter Son McGoldrick, 269 App.Div. 685, 54 N.Y.S.2d 380, 383. orders affirmed Appeals, Co. 294 N.Y. 906, 908, 63 N.E.2d 112, remittiturs issued stating Appeals ground applied violation Article I, § 8, 3, Constitution United States.3 Writs his sought granted whether constituted an unconstitutional burden 3 Petitioners recognize force case precedent. Their argument is subsequent holdings have indicated reasons underlay decision no longer controlling judicial examination constitutionality state taxation proceeds derived subject federal regulation. They cite, among others, later decisions: Western Live Stock Bureau Internal Revenue, 303 250, 546, 823, 115 A.L.R. 944; Southern Pacific Gallagher, 306 167, 59 389, 83 586; McGoldrick Berwind-White Coal Mining Co., 309 33, 60 388, 84 565, 128 876; Department Treasury Indiana Wood Preserving Corporation, 313 62, 61 885, 85 1188. 4 In receipts, indistinguishable laid case, held invalid stevedoring exactly like those with we here concerned. pointed out, page 92 seq., 73, 68, transportation water impossible loading unloading. Those incidents occupy same relation commerce performed crew stevedore, contracting independently handle cargo. movement cargo off ship substantially continuation transportation. Cf. Baltimore O.S.W.R. Burtch, 263 540, 44 165, 68 433. 5 It trite repeat want power confederation regulate principal reason adoption Constitution. bears limitation face and, Congress acts it, interpretation suggested none, except such prescribed Gibbons Ogden, 9 Wheat. 1, 196, 6 23; States Carolene Products 304 144, 147, 778, 780, 781, 1234; North American Securities Exchange 327 686, 704, 66 785, 795, 796. On hand, Constitution, words, places state's things persons boundaries. What limitations there spring applications situations clauses E.g., Art. I Cl. 3; Indians, Wall. 761, 18 708; Board County Commissioners States, 308 343, 285, 313; Bell's Gap R. Pennsylvania, 134 232, 237, 10 533, 535, 33 892; Lawrence 286 276, 284, 52 556, 558, 559, 76 1102, 87 374; Henderson Bridge Henderson, 173 592, 614—15, 19 553, 561, 562, 43 823; Rapid Transit Corporation 573, 581—82, 721, 725, 726, 1024. From itself, comes, also, abridgment limits. This arisen long continued that, congressional action, words themselves forbid undue interferences states commerce4 rule applies full unapportioned5 business,6 where lieu property.7 think stevedoring, obviously 'continuation transportation,' apportioned taxing state. least, begins ends Loading effect outside because preliminary but essential part convenience itself. 7 When come weigh interference purposes portion Clause—the freeing unneighborly regulations inhibit intercourse supplies reciprocal wants commerce8—is significant factor consideration. An text leave free until intervened would permitted intolerable discriminations. Nippert Richmond, 416, 586, 162 844, collected notes 13, 14, 15 16. Nevertheless, proper regard their right require contribute support governments make possible, led Congress, over period intact rulings, referred above, apportioned, non-discriminatory receipt fairly levied property conformed requirements Clause. As lies desired adjustment area, acquiescence our former rulings indicates agreement adjustments competing interests revenues.9 There another basis acceptance, almost complete, interpretations field. wide latitude exists permissible taxation. term, effort show reach Circuit did destroy pay way, elaborated fact itself sole source revenue Freeman Hewit supra, 329 249, 254, 274, 277, see Adams Mfg. Storen, 310, 915, 1365. 8 A proceeds, unhampered Clause, permit multiple noted invalidation. 255, 548, 944. selection intrastate incident taxable event actually carries similar threat but, sufficiently disjoined thought levy.10 result generally reached selected one essentially repeated each unit. present burden, few instances record interstate, distinction foreign, absent. arises possibility actual cost carrying does differ imposed exaction—ad valorem, net excise. need distinct enough gross. precedent, controlling. promptly recently cited approval.11 appears Storen12 possible double against levies 258, 549, 550, 944, adverted comparison ruling 'preparing, printing publishing magazine advertising peculiarly circulation commerce.' included Court's Gwin, White Prince, Inc. Henneford,13 marketing fruit invalidated Co.,14 though relied concurring first 305 442, 329, 272, dissent second 400, 876. Upon history gives impression doubt vitality Sound. now problem overruling approving case. Since consideration how far go closely related time lend strongest petitioners' above. comment further them. 2% excise Mexico publishers advertising, upheld Stock, found exaction business.15 Gallagher turns expressly conclusion use validly event, 'separate apart commerce,' 176, 393, case16 taxpayer sold ties began, 67, 887, 888, likewise true St. Louis, 250 459, 39 522, 1084, explained Storen case.17 examine purchasers tangible personal consumption, reliance sale, pages 43, 47, 49, 58, 390, 392, 394, 398, 876.18 said, 48, 876: 11 'Certain types may, if all, so readily made instrument impeding destroying plainly condemnation forbidden regulations. Such already aimed discriminate impose levy privilege doing communication earnings, merchandise course journey.' Though all movement, can distinguished definite separation between soundness conclusions. 12 more than just Although actuality cumulative levies, they interfere See Arizona ex rel. Sullivan, 325 767, 65 1515, 1519, 89 1915. Stevedoring, conclude, therefore conducting measured invalid. reaffirm Company. 'What makes freedom Hewit, 256, 279. practice prohibit adds sales tax. lifts formalism recognition effects legislation probable consequences. Not follow line precedents outlawing likelihood flourish luxuriant y most Thus cities centers, discrimination out-state compared business, larger proportions could obtained flow avoidance toll passage through locality 13 Affirmed. 14 BLACK dissents. DOUGLAS, whom RUTLEDGE concurs, dissenting part. 16 First. valid insofar reaches 17 clear respondents' That followed decisions1 engaging exacting receipts. one, involved license engage payment flat otherwise. Leloup Port Mobile, 127 640, 1380, 32 311; Crutcher Kentucky, 141 851, 35 649; Bowman Continental Oil 256 642, 41 606, 1139; Cooney Mountain Telephone Telegraph 384, 55 477, 79 934; Murdock 319 105, 114, 870, 875, 891, 1292, 146 81. Nor they, concern expressed hostility discriminating it. Best Maxwell, 311 454, 334, 275; 844. nature tax, immunity. theory, Philadelphia S. 122 326, 336, 1118, 1119, 1120, 30 1200, form regulation 'a restriction Clearly, done interfering congress.' fares goods unapportioned. shall see, holding impaired. But principle announced—that commerce—was given scope. soon businesses (including communication) sustained discriminatory carried state.2 Maine Grand Trunk 142 217, 121, 163, 994. validity established employed measure value franchise (Maine supra; Wisconsin M.R. Powers, 191 379, 24 107, 48 229) used State. nited Express Minnesota, 223 335, 211, 56 459; Cudahy Packing 246 450, 38 373, 62 827; Illinois Central 157, 419, 670. 20 335—336, decided 1938. stated latter type added 'with equal every touches, merely being done, protection clause bear burdens * multiplication transactions spell destruction renew barriers trade object remove.' explanation vice unapportioned earlier Case Freight Tax, 280, 21 146, accepted decisions since 307, 311, 913, 916, 1365; Henneford, 434, 438-440, 325, 327, 328, 272; 45—46, 391, Prince said subjected 'to risk exposed *.' Or 439, 272: 'Here volume appellant participates, If Washington exact extends right, lay service. nominally local, thus practical operation discriminates imposes exposed.' 22 175, respects transportation, 'The measurement cannot upheld.' 23 Under view way other. noted, And taxed, subjected. Ratterman Union Tel. 411, 1127, 229; Alabama, 132 472, 161, 409; Meyer Wells Fargo 298, 218, 445. activity confined exclusively No activity.3 nothing reflect values attributed test recent (Western supra), seem unobjectionable. 25 true, however, companies enterprises prior even taxed Galveston, Harrisburg S.A. Ry. Texas, 210 28 638, 1031; Jersey Bell Texes Assessment 280 338, 50 111, 74 463. Michigan, 121 230, 857, 888. Galveston held. apportionment property, taken property. (210 227, 1031): 26 'It sufficiently, perhaps what look rather logical philosophical distinction. must allowed going concern. business. necessities hardly admit absolute reconciliation. Yet sense. legislature trying simply less likely attempt injurious aiming directly drawn whole scheme into account. court best can. Neither courts nor legislatures, giving particular name some take away duty effect. amount relatively immediate saved form.' 27 applicable alone.4 Whatever proposition companies, become relevancy here. alike. equality throughout; heavier Political restraints, lacking singled special taxation, absent Moreover, difference constitutional terms Either might end. 'an annual exercising' corporation's franchises 219, stated, 228, 122, 994, resort ascertain corporation, obtain guide reasonable should much While extraterritoriality involved. attributable is, course, augmented S.A.R. 225, 639, 455—456, 375, 376, 827. Respondents including usual taxes. state, twice different doubling single adopted account, out. suggestion say system bids fair harmful designed raise 438, 312-313, 917, 1365, sustaining Ficklen Taxing District Shelby 145 810, 36 601, brokerage shipped delivery after municipal manufacturer who producing conduct manufacturing enterprise. taxes, solely (New Lake Erie W.R. 158 431, 896, 1043; Utah Power Light Pfost, 1038; Coverdale Arkansas-Louisiana Pipe Line 604, 736, 1043) caused intrastate. Plainly One close relationship Darby, 312 100, 657, 451, 609, 1430. rise difficult why not. each. 31 52, 395, 396, 876, purchase end journey sale exercise constituent elements Unless formal doctrine restored field, label controlling; unless evinces obstructs impedes called states: journey. Each b ar, disadvantage circumstances asserted sustained, left exert detriment national Measured test, 'Even Postal Telegraph-Cable 249 252, 259, 265, 266, 590. judged J. Penney 435, 444, 246, 267, 130 1229: 34 formulary. demand strict observance rigid categories precision technical phrasing basic government, decisive operating incidence challenged pursue own fiscal policies, unembarrassed exerted opportunities given, afforded, benefits conferred orderly, civilized society.' All affect degree increase Matters threatens harm Prior 'Interstate domestic state.' Robbins 120 489, 497, 596, 694. philosophy 246—247, 864, adhere doctrine. Wiloil 169, 358, 838, 'non-discriminatory buyer commodity performance contract, prohibited Natural Gas Public Service 314 498, 505, 386, 387, 86 371. matter competitive obstruct impede approach here; 'the logic yield realities.' Brandeis dissenting, Di Santo 273 34, 47 270, 271, 71 524. failure corroborates us marked cycle beginning another. 37 Second. repugnant provides 'No shall, Consent Imposts Duties Imports Exports, absolutely executing it's inspection Laws *. exporting process' Import-Export protects Thames Mersey Marine Ins. 237 U. . 19, 27, 496, 499, 821, Ann.Cas.1915D, 1087. Activity 'step exportation' Spalding Bros. Edwards, 262 66, 485, 486, 865. says, transportation." Indeed, commencement exportation occur later. Richfield Corp. Equalization, 69, 156. impost export meaning 'which gave accrual step process.' supra. 'though complementary, serve ends.' balance interests. Taxes share government receives upheld; invalidated. written exception contains. Accordingly survive tests fail me good example. 40 MURPHY joins part, he constitutional. series laws, No. 1937, p. 1938, 253, 103 1939, 240, 78 1940, 342, 1941. passed pursuant anthorization Ch. 245. dispute laws. phases Certiorari 326 713, 177. Local 78: R41 2.0. Imposition a. exercising gain profit city trade, profession, vocation commercial financial making city, periods year, thereof, July nineteen hundred thirty-nine forty, person one-tenth per centum received and/or allocable vocation, exercised him during calendar year commence, *'. allocation subd. b. raised petitioner act. R41—3.0. To Nations, several Indian Tribes; 767—69, 1520, 1915, cited; Morgan Commonwealth Virginia, 328 050, 1054, n. 17; 274; Compare 994; Wells, 301, 445; Underwood Typewriter Chamberlain, 254 113, 45, 165; Hans Rees' Sons Carolina 283 123, 51 385, 75 879; 888; 428, 1132, San Antonio 300, Minnesota Rate Cases (Simpson Shepard), 230 352, 729, 740, 57 1511, L.R.A., N.S., 1151, Ann.Cas.1916A, 18; Crew Levick 245 292, 295, 126, 127, 295; Fisher's Blend Station 297 650, 655, 608, 610, 80 956; 312, Cable Adams, 155 688, 698, 268, 360, 346—48, 215, 216, 459. Federalist 7, 22, 42; Baldwin G. A. F. Seelig, 511, 523, 500, 1032, 101 55. Distilling Maryland 242 180, 185, L.R.A.1917B, 1218, Ann.Cas.1917B, 845; Hill, 248 420, 143, 337; Whitfield Ohio, 532, 778; Kentucky Whip Collar 299 81 270; Prudential Benjamin, 408, 430, 1142, 1155; 769, 1915; 277. 258—260, 551, 738, 739, 178, 257, 272. 'All events conditioned preparation, publication matter, sums paid it—occur elsewhere,' 260, 551. 'So rates maintenance too remote attenuated rigidly Practical distinctions sought.' 550. alternate ground, elsewhere inapposite situation this. International Harvester Treasury, 322 340, 348, 64 1019, 1023, 88 1313. 312—13, 1365: appellees rely strongly (City of) supporting appellant's total citizens countries. dealt fee pursuing occupation Louis. taxpayer's sales. ensuing past year's preceding removed manufactured warehouse them warehouse. contended include coming year. held, price produced date manufacture. consummated 276. 'Its immediately transfer possession purchaser regardless passing title, transported brought journey's 'use' Monamotor Johnson, 292 86, 575, 1141; Henneford Silas Mason (300 577, 524, 814); Felt Tarrant 488; storage withdrawal consignee gasoline, Gregg Dyeing Query, 631, 1232, 831; Nashville, L. Wallace, 288 53 345, 77 730, 1191; Edelman Boeing Air Transport 289 591, 1155, familiar destination Brown Houston, (114 622, 1091, 257); Steel Wire Speed, 192 365, 538. 1200; O. Railroad Maryland, 456, 678, condition corporate franchise. suggests required creates loading. sense occurs borders; activity. relevant terminals trackage borders. restricted facts emphasized Bradley (122 344—345, 1124, 1125, 1200): 'Can regarded tax? can, constitutionality? incomes inhabitants companies. Conceding, certain classes community, occupations, class refers, only. Many undoubtedly sources, rents houses, wharves, stores, water-power, interest moneyed investments. seen quotations supported ingredient taxable. unnecessary, therefore, discuss arise income. clearly such, only.' Glue Town Oak Creek, 247 321, 1135, Ann.Cas.1918E, 748, enterprise application.

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