The San Francisco call., 1901-12-03
CONGRESS HAS POWER
TO Ir1POSE DUTY ON
PORTO RICAN EXPORTS
United States Supreme Court Sustains the
Constitutionality of the Law In
volVed in DooIey Case.

shall have enacted and put into operation
system Of local taxation TO meet the necessi-
act established and shall BY resolution duly
passed so notify the President, he shall make
proclamation thereof and thereuDon all tariff
duties on mercnandise and articles going into
Porto Rico shall cease, and from and after
such date all such merchandise and articles
shall be entered at the several ports of entry
And by section ''the duties and taxes coll
shall not be covered into the gen
eral fund Of the Treasury. but shall be held
as separate fund and shall be placed at the
disposal to be used for the government and
beneat Of Porto Rico until the Government OF
Porto Rico. herein provided for, shall have
been organized. when all moneys Heretofore
collected under the provisions hereof then un,
treasury Of Porto Rico"
Now, there can be no doubt whatever that II
the legislative Assembly of Porto Rico should
with the consent of Congress lay tax upon
goods arriving from ports Of the United States
such tax If legally imposed would be a duty
ports from the United States, and we think
the same result must follow If the duty be
laid by Congress in the interest and for the
benefit Of Porto Rico.
Only Temporary Legislation.
The truth is that in imposing the duty a
teInEorary expedient with a proviso that it
bly, of Porto Rico at its will, Congress there
by shows that it is undertaking to legislate
for the island temporarily and only until the
local government is put into operation The
mere fact that the duty passes through the
hands Of the revenue officers of the United
States is immaterial in view of the require
ment that it shall not be covered into the
general 1uno OF the treasury, out heio as a
separate fund for the government and benefit
Of Porto Rico.
The exaction is really correlative to that of
Downs VS.. Bidwell. in which we held that
Congress could lawfully impose a duty on i'm
ports from Porto Rico, Notwithstanding the
imposts and excises shall be uniform through
out the United States.
It is true that this conclusion was reached
hN mai i0rif nj
cesses of reasoning, but it is not the less true
that the conclusion that certain provisions Of
the constitution did apply to Porto Rico and
that certain others did not, there was no diff
1t is not intended by this opinion to inti-
mate that Congress may lay an export tax
upon merchandise carried from one State to
another. While this does not seem to be for
hidden by the express words OF the constltu-
ton, it would be extremely difficult if not
toB 81 th 70 rf rs psagraph OF Article
tion S, that ''all duties imDosts and excuses
shall be uniform throughout the United
States"
There is a wide difference between the full
and paramount power Of Congress IN leglslat-
ing for q Territory in the condition OF Porto
Rico and its power with respect TO the States,
Mnach 1s TIery connerce The QUESTION how
ever is not involved in this case, and we do
not desire to express an opinion upon 1t. There
duties were properly collected and the acton
of the Circuit Court in sustaining the de-
n1urrer to the complaint was correct ana II IL
therefore affirmed.
u
Chief Justice Fuller and Justices Brewer,
Harland and Peckham unite in dissent
ing opinion in the case. The opinion was
read by the Chief Justice and was based
largely on the constitutional provisions
concerning the regulation or commerce
He said in part:
The power to regulate interstate commerce
was granted in order that trade between the
States might be left free from discriminating
legislation and not impart the power to create
antagonistic commercial relations between
them. The prohibition OF preference OF ports
was coupled with the prohibition OF taxation
on articles exported The citizens OF each State
were declared entitled to all privileges and
immunities Of citizens IN the several states
and that included the right Of ingress and
egress and the enjoyment Of the privileges OF
trade and commerce.
The prohibition on Congress IS explicit and
notioeably different from the prohibition Of the
States. The State is forbidden to lay any i'm
posts or duties:'' Congress is forbidden to lay
''any tax or duty" The State is forbidden from
laying imposts or duties imports or ex
out Of the United States. Congress is forbidden
to tax articles exported from any State"
Taking up the plea that the duties ir
this case were laid not on articles ex
ported from the State of New York, bu
on articles imported into Porto Rico, the
| Chief Justice said the language used pre-
cludes this contention. The geographical
origin of the shipments controls, and it Is
not material whether the duties were col
lected at the place of expectation a.
Porto Rico. They were imposed on arti
/ cleS exported ITOIn the OldU6 VI new L OFF
! and before the articles had reached theil
ultimate destination and had been min
| gled with the common mass of property
| on the island.
The dissenting opinion concludes as fol.
/ lows:
J The proposition that because the proceeds O.
these duties were to be used for the benefit O.
Porto Rico they might be regarded as if laiC
/ by Porto Rico itself, with the consent Of Con
! gress and were therefore lawful, will not beal
/ examination.
Congress may lay local taxes in the terri
tories. affecting persons and property therein
/ or authorize territorial legislatures to do SO
/ but it cannot lay tariff duties articles ex
] ported from State to another or from an,
State to the territories from any State L
I foreign countries. or grant a power in tina
( regard which it does not possess But the de
/ cision now made recognizes such powers il
/ Congress as will enable it, by means of tax
/ ation II exclude the products of Porto Ric
flom the States as well the products of tn
| States from Porto Rico: and this, notwith
! standing 1t was held in De Lima VS.. BidweIl
| that Porto Rico after the ratification of tn
! treaty with Spain ceased to be foreign and be
came domestic territory.
We think II clear on this record that plain
tiffs were entitled to recover and that tn
judgment should be reversed.
+ : : \ !. : :