Document: 340 U.S. 511 71 S.Ct. 447 95 L.Ed. 488 CANTON R. CO.v.ROGAN et al. No. 96. Argued Nov. 28, 29, 1950. Decided Feb. 26, 1951. Mr. J. Henry Lewin, Baltimore, Md., for Canton Co. Messrs. Hall Hammond and Harrison L. Winter, appellees. Justice DOUGLAS delivered the opinion of Court. 1 The State Maryland imposes on steam railroad companies a franchise tax, measured by gross receipts, apportioned to length their lines within State.1 Appellant Railroad Company, corporation, challenges validity tax under Import-Export Clause Constitution, Art. I, § 10, cl. 2, insofar as income which taxes includes revenues derived from handling goods moving inforeign trade. 2 is common carrier freight operating entirely City Maryland. It maintains marine terminal in port Baltimore connecting this with major trunk-line railroads. Its are services fall into following classifications: 3 Switching cars piers 4 Storage pending forwarding, charge made each day beyond free period. 5 Wharfage, or privilege using Canton's transfer cargo lighters trucks. 6 Weighing loaded cars. 7 Furnishing crane use unloading vessels. This operated stevedoring company, pays set per ton 'crane privilege.' 8 A substantial proportion moved consists exports imports United States. In its report Tax Commission 1946, showed receipts business $1,588,744.48, it claimed $705,957.21 be exempt taxation because operations foreign commerce. After hearing, rejected contention that part was constitutionally assessed at higher figure, imposed of.$39,092.34. TheCommission's order affirmed both Circuit Court Appeals Maryland, two judges dissenting. Western Ry. v. Commission, 73 A.2d 12. 9 case here appeal. 10 Constitution commands 'No shall, without Consent Congress, lay any Imposts Duties Imports Exports, except what may absolutely necessary executing inspection Laws * *.' court held does not violate provision Constitution; we agree. 11 If were articles import export, would have kind problem presented Spalding & Bros. Edwards, 262 66, 43 485, 67 865; Richfield Oil Corp. Board, 329 69, 156, 91 80; Hooven Allison Evatt, 324 652, 65 870, 89 1252; Joy Comm., 337 286, 69 1075, 93 1366. But present export; nor equivalent direct articles, true stamp bills lading, Fairbank States, 181 283, 21 648, 45 862, charter parties commerce, States Hvoslef, 237 1, 35 459, 59 813; policies insuring against maritime risks. Thames Mersey Marine Ins. 19, 496, 821. latter cases indicate prohibition involves more than an exemption laid upon themselves. Moreover, Crew Levick Com. Pennsylvania, 245 292, 38 126, 62 295, reasoning Brown 12 Wheat. 419, 444—445, 678, gave like immunity selling commerce when taxes. Cf. Anglo-Chilean Nitrate Sales Alabama, 288 218, 53 373, 77 710. Though appellant engaged import-export business, claims goods, destined export arrive imports, process exportation importation. support argument refers language supra, relative starts; argues that, if baseballs baseball bats Spalding2 oil immune sales those commodities had been committed exportation, same should allowd since handled similarly difference but them port. An article long before after reaches activities connected range cannot so wide. To means carry send abroad; bring country. Those acts begin end water's edge. broader definition tenders distorts ordinary meaning terms. lead back every forest, mine, factory land create zone never imagined. For process, hauling distant points perhaps mining manufacturing them. phase make no fact arrived imports. 13 loading activities. close examination record indicates merely rents itself do work. Hence need decide whether reason Clause. Joseph Carter Weekes Stevedoring Co., 330 422, 815, 993. 14 We conclude, however, activity remote commence movement abroad arrival therefore process. 15 objection Maryland's ground interstate involved well taken. settled nondiscriminatory enterprise sustained fairly done taxing state, see Live Stock Bureau Revenue, 303 250, 255, 58 546, 548, 82 823, reaching carried borders state. Where transportation concerned, apportionment according mileage state3 approved method. Central Greyhound Lines New York Mealey, 334 653, 663, 68 1260, 1266, 92 1633. 16 Affirmed. 17 CHIEF JUSTICE took consideration decision case. 18 Jackson 511, 451. 19 By JACKSON, reserving judgment. 20 case, I reserve judgment belief today's found, matters briefed argued, untenable. One fundamental federal policies, established itself, Preference shall given Regulation Commerce Revenue Ports one over another 9, 6. policy further implemented requirement duties, imposts excises, uniform, 8, duty exported 5. equality access high seas can also upset states. forbids consent duties exports, pay cost laws. 2. 22 detailed constitutional concern about manifestation realistic recognition state city safe harbor sits gateway only inevitable natural advantage, strategic exploited restrained. Political influence wealthy populous areas feared making law, hence restrictions Congress. disposition cities states exploit location astride Nation's portals feared, restriction 23 roads ports obstructed local regulation taxes, inland producers tribute seaboard longer road port, localities burdens passing traffic. evident avoid these maintain equal areas. avoided shifting some incident such carriage, unavoidable then practical nullity. think goes exempting specific ad valorem duties—it prohibits 24 matter giving farms factories fari sea will enable compete equally available possible, regardless distance Ocean rates all Atlantic ports, differences costs coast offset represent net markets. 25 Interstate Court, American rail motor carriers concurred development rate structures premise recognized time they reach There wealth statutory material relating carriage railroads, carriers, shipping companies.* Railroads lawful tariffs substantially less Texas P.R. I.C.C., 162 197, 666, 40 940; 289 627, 768, 1410. shipments, although through bills, might lawfully transported below charged domestic traffic between points. page 636, 771. differential, believe, sometimes much fifty percent tariff route. Of course, character recongized until ready board boarded ship, rank discrimination shippers quite justification. 26 What has done, while transit constitute proceeds handling, profits therefrom. adds directly ship-side, greater travel, possible accumulation burden. Clearly, obstruction path policy. 27 However, effect advanced courts counsel, wish express final view matter. suspect cause mischief quarters considered. 28 FRANKFURTER joins opinion. 81, §§ 94 1/2 95; Md.Ann.Code (1943 Supp.). cent price 'Upon tennis rackets, golf clubs, bats,' etc. Act Oct. 3, 1917, 600(f), Stat. 300, 316. presented, did Fairbank, cases, question provides, Duty Articles State.' required 'upon earnings line bears whole line'. 95(b), note 1. As demonstrative Congress vitally concerned U.S.C. 173, U.S.C.A. respecting annual statistics Director Foreign Domestic Commerce, he must outline 'kinds, quantities, values' imported, showing country values, being broken down manufactured value, other countries value. Also, apply limits 49 902(i)(3), 902(i)(3); C.F.R. 141.67, state-side received considerable attention. Chapter 12, Part III Act, water defines 'common water' 'any person holds out general public engage passengers property (Emphasis supplied.) 902(d), 902(d). Section 905(b) Title states: 'It establish reasonable routes just applicable thereto *. Common vehicle. *' And 905(c) provides unlawful give undue unreasoanble preference advantage particular person, territory, description Further congressional evidenced 906(a), 906(a): 'Every file print, keep open rates, fares, charges, classifications, rules, regulations, practices places own route, route vehicle, joint established. See 6, par. (12), 6(12), providing: 'If subject chapter chapters title enters arrangements interior country, require enter similar steamships said country.' ever-present appear strong indication regards first consigned destination, ship carried.

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