Document: 334 U.S. 653 68 S.Ct. 1260 92 L.Ed. 1633 CENTRAL GREYHOUND LINES, INC., OF NEW YORKv.MEALEY et al., State Tax Commission of the New York. No. 14. Argued Oct. 13, 1947. Decided June 14, 1948. Mr. Tracy H. Ferguson, Syracruse, N.Y., for appellant. John C. Crary, Jr., Albany, appellees. Justice FRANKFURTER delivered opinion Court. 1 This is a proceeding arising out determination by York, sustained courts State, whereby § 186-a York Law, Consol. Laws, c. 62, was construed to impose tax on appellant's gross receipts from transportation between points within but over routes that utilize highways Pennsylvania and Jersey. The appellant contents, against contrary conclusions below, since taxed interstate commerce, may not constitutionally such transportation. In any event, it submits validly only so much these as are attributable mileage State. Before dealing with issues, we must dispose an objection our right deal them. 2 urges constitutional claims here pressed were passed upon Court Appeals. record does sustain this challenge jurisdiction. Th issues undeniably raised before review Appellate Division Supreme Court, 266 App.Div. 648, 44 N.Y.S.2d 652. suggestion Appeals based its statement question urged there 'not one taxing power statutory construction.' 296 N.Y. 18, 24, N.E.2d 855, 858. But court proceeded pass expressly held 'there no taxation total here. commerce. * *' at page 25, 859. Its amended remittitur stated explicitly under Commerce Clause Constitution 'was presented upon,' in sustaining 'held aforesaid statute repugnant provision Federal Constitution.' amendment retrospective injection non-existent federal question, formal certification claim had been adjudicated It properly review. 237(a) Judicial Code, 28 U.S.C. 344(a), U.S.C.A. 344(a). 3 case serves remind once more do adjudicate abstractions, as, 'What commerce?' Also, again illustrates even if be found certain transactions fact constitute conclusion answer further inquiry whether particular assertion offends Clause. Article 1, 8, cl. 3. 4 too late day deny which leaves enters another 'Commerce among several states' simply because same Hanley v. Kansas City Southern R. Co., 187 617, 23 214, 215, 47 333; Western Union Tel. Co. Speight, 254 17, 41 11, 65 104; Missouri Pacific Stroud, 267 404, 45 243, 69 683. reaching opposite relied three decisions Court: Lehigh Valley Pennsylvania, 145 192, 12 806, 36 672; Ewing Leavenworth, 226 464, 33 157, 57 303; People ex rel. Cornell Steamboat Sohmer, 235 549, 35 162, 59 355. case; decisions. holding defined precision Holmes case. He accounted some disregarded commerce matter fact, tested actual transaction, 'made deference drawn 672, they carry their far.' pointed 'the determined respect proportion State' 201, 808, 672. Such proportioned has admitted interstate.' supra, 621, 216, 333. limited scope basis decision United States Express Company Minnesota, 223 335, 32 211, 56 459. case, Minnesota interpreted 'as allowing recovery taxes earnings derived carriage wholly state seems us safer rule, avoids adopt apply Nine per cent. recovered class should deducted amount recovery.' 114 Minn. 346, 350, 131 N.W. 489, 490, 37 L.R.A., N.S., 1127. On writ error upheld court's application decision. 341, 342, 213, 5 view, however, contrariety views given rise, calls candid consideration than merely quoting phrases congenial this. Railroad attacked validity company's line Mauch Chunk, Phillipsburg, operated connecting Phillipsburg Philadelphia. arranged continuous through passengers freight Chunk trial found, appears record, 'total transportation, seven collected point shipment remainder destination, apportioned companies basis—that say, each share number miles carried bore carried.' ground substance 'purely internal.' affirmed opinion. Commonwealth, Monag., Pa., 45, 17 A. 179. 6 When got here, contended constituted therefore beyond while Delaware River border Jersey, Jersey reached railroad via bridge. other hand, ignoring stretch bridge (apparently theory de minimis) insisted deemed 'wholly traffic state' treated itself. traffic, railroads inter se attributed Pennsylvania. fiscal arrangement two explanation justification Court's 'The state.' And so, naturally enough, called 'a tax,' 'had 7 support proposition interstate' invoked Maine Grand Trunk 142 217, 121, 163, 994. Unfortunately, did rely mention it. silence explicable few months before, term, sharply divided very issue Chief Fuller spoke unanimous court. One entitled infer accord obtainable renewing battle would firstt ime history agreement could mode reasoning another. Bradley his fellow dissenters evidently content 'domestic transportation,' 'internal intercourse,' short 'interstate commerce,' thereby bring into vigorously expressed them before. 8 reasonable enough disregard distance went otherwise treat minimis when railroad's accounting itself proportioned. 'Regulation states both practical rather technical conceptions, and, naturally, limits fixed lines.' Galveston, Harrisburg San Antonio Texas, 210 225, 638, 639, 52 1031. label across stream 'local commerce' purposes relations, see, e.g., Covington & Cincinnati Bridge Kentucky, 154 204, 14 1087, 38 962, use loosely terms having connotations significance. To call set circumstances, exertion rendered invalid indulge fiction. Especially disposition legal fictions hazardous, risk confounding users readers. kind confusion rise results employing needless fiction—calling local interstate—as manner stating exercise though affects difficult task determining phase concededly interstate, subject incidence regulation, or otherwise, lessened calling order control. persistent protean problem federalism form question-begging fiction, 9 brings facts us. traverses well say confined pure eliminate relation nor benefits those confer portions borders. Neither interests responsibilities evaporated verbal device attributing entire There utilized means avoiding part York's taxation. Compare, Eichholz Public Service Missouri, 306 268, 532, 83 641, Ryan Utility Commission, 143 Pa.Super. 517, A.2d 637. We necessary deviation calculated detour. Nor seeking physically outside borders trifling quantity part, insignificant. seeks nearly 43% lay Transactions substantial extent actually take place cannot legally 10 Of course commerce.' Congress exceed t regulate Motor Carrier Act 1935 included Act: term places moves motor vehicle partly rail, express, water.' 49 Stat. 543, 544, 303(a)(10), 303(a)(10). like nothing gained, clarity lost, starting recognition reach candidly facing real what exacting fair demand aspect bears special relation. See Brokerage Jensen, 322 202, 64 967, 88 1227, 152 A.L.R. 1072, Bob-Lo Excursion Michigan, 333 28, 358. being inevitably 'nice distinctions expected.' clearer reasonably made if, instance, flat privilege applied municipality express company shipping packages frankly burden sense Compare Kirmeyer Kansas, 236 568, 419, 721. Again, have less dialectical, coherent, development law corporation, engaged towing vessels ports Hudson traversing side touching shore, particularly Jersey's transactions, (very different now us), burdening hold 'transportation excluded state, journey territory 560, 164, 355, States, 321 634, 768, 978. 11 significant that, far advised, unapportioned going (except insignificant disregarded), returns origin. If make appropriately business afford protection, see how principle precedent denied. allow mileage—on 57.47% 42.53% without—would unfair revenue give protection portions, not. conjure up remote possibilities. Pennsylvania's portion speculation. Apparently, 1931. Penn.Laws 1931, p. 694, 255, 5, 1947, P.L. 451, No.2 04, 72 P.S. §§ 2184, 2185. taxes, dispute meaning formula she so. neither sought proportionate abstention justify revenue. Freeman Hewit, 329 249, 256, 67 274, 288, 91 265. nature makes bear cost government whose enjoys.' Id., 253, 277, vice lays direct every transaction (interstate) withholding, dollar received transactions.' Crew Levick 245 292, 297, 126, 128, 62 295; Adams Manufacturing Storen, 304 307, 311, 58 913, 915, 82 1365, 117 429; supra; Joseph Carter Weekes Stevedoring 330 422, 815, 993. However, levying need fall. 'fairly apportioned' 'business done method apportionment.' Livestock Bureau Internal Revenue, 303 250, 546, 548, 823, 115 944. feasibility apportioning tax. Ratterman Telegraph 127 411, 427, 428, 1127, 1132, 229. fairness suggested apportionment. Bell Telephone Board Taxes Assessments, 280 338, 50 111, 74 463; cf. Wallace Hines, 253 66, 40 435, 782. Both appellee indicated construction, permits apportionment, determine. 13 judgment reversed cause remanded proceedings inconsistent Reversed remanded. 15 RUTLEDGE concurs result. 16 MURPHY, whom BLACK DOUGLAS concur, dissenting. A precise delineation controlling essential involved appeal. That concerns alleged conflict clause income utilities doing state. Specifically, relates bus originating terminating passing parts 18 Section Law 'Emergency furnishing utility services.' imposes 'equal percentum addition all fees imposed period.'1 word 'utility' include person 'subject supervision either division department public service'2 words 'gross income' 'receipts reason sale service ultimate consumption purchaser *.'3 19 Appellant corporation common carrier omnibus. operates buses without Commission. Hence 186-a. 20 numerous Buffalo cities upstate cut sections most ones possible. controversy concerned routes. Application moving solely contested; out-of-state taxed. 21 At hearing relative contested tax, parties agreed evidence operations during July, 1937, applicable subsequent thereto. introduced revealed journeys traversed thereof Although transfers stopovers indicated, showing break unrelated trips. predicated times single tickets percentage 22 issue, proration accordance considered unnecessary. So construed, Constitution. ruling courts. crucial standpoint, dual unique character termini where en route. intrastate features. From standpoint physical movement, crossing lines belonging one—a movement interstate. time, transporting essentially despite movement. All elements commercial intercourse represented resident contract, making contract identified preeminently whole purpose transport Passage mere geographic incident consummation transaction. While passage significance purposes, operate relationship underlying 24 narrow compass type something fiction features present. Cf. e cognition hard realities situation. realization persons connotations, character. Due Holmes' admonition conception, Swift 196 375, 398, 25 276, 280, 518, forbids indiscriminate crossed business. Where remain intact essence practicality fact. situation long recognized unlike types, commercially local. life distinction might effective detracting unnecessarily sphere. proposed action create potential authority lines, emphasized supreme. Thus 333, sole fix rates rail Arkansas route Indian Territory; accordingly precluded ratemaking instance. said stress laid border. also 683; compare Wilmington Transportation 151, 508. 26 impact endanger embarrass control movements, sanctioning imposition authority. occurred setting city license levied involved. 459; cases non-discriminatory interfered way regulations wish movements lines. thrust affected articles therefrom. variety clear rejection contention soil renders foreign domestic.' As 'But 27 Room thus system accommodation regulating unq ue note 4, 771, designed protect national interest uniform regulation safeguard legitimate placing burdens business.4 proper dictated large Those prior dismissed dialectical exercises They represent realistic appreciation nature. receipts, consistent grounded base justifies power, impossible. effect, levies service. Engaging business, cross states. concerned.5 29 light past novel limit corresponds trips i.e. 57.47%. involve prorated respective worth, impossible determine took York; unresolved. 30 rule requiring apportionment activities necessarily existence S.t . 229; Wisconsin M.R. Powers, 191 379, 107, 48 prevent will discriminate prohibit disadvantage obviously inapplicable labelled seen, constitutes Law. occurs segment retains position integral taking circumstances. Inasmuch restrictive force non-effective, 31 result permit states, framework clause, points. What exists quite considerations Since occurring borders, concentration placed then therein. sustained, resulting multiple natural consequence conducting facilities one. outlawed clause. possibility I affirm below. 186-a, subd. 1. 2(a). o rk 2(c). 203(a)(10) Part II Interstate Act, defines regulatory 'between State.' 202(c) 302(b), 302(b) therein 'shall affect powers States.' Congressional regard interests. See, general, Kauper, 'State Regulation Carriers,' Mich.L.Rev. 1097, 1105—1107; Tarney, 'Methods Differentiating Intrastate Transportation,' Geo.Wash.L.Rev. 553, 633—637; Ganit, Clause, 62(d), (1932). aptly paraphrased 672: 'So Erie Railway Buffalo, understand escapes road Central places, rails York.'

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