Document: 366 U.S. 199 81 S.Ct. 929 6 L.Ed.2d 227 STATE OF ALASKA, Petitioner,v.ARCTIC MAID et al. No. 106. Argued March 23, 1961. Decided May 1, Mr. Gary Thurlow, Juneau, Alaska, for petitioner. Martin P. Detels, Jr., Seattle, Wash., respondents. Justice DOUGLAS delivered the opinion of Court. 1 While Alaska was a Territory, Territorial Legislature amended L.1951, c. 116, its taxing statutes, to read, in relevant part, as follows: 2 'Section 1. Businesses In Fisheries Requiring Licenses: Amounts Thereof. Any person, firm or corporation prosecuting attempting prosecute any following lines business connection with Alaska's commercial fisheries shall first apply and obtain, on conditions hereinafter set forth, license so do basis taxes which are hereby levied: 3 '(b) Freezer ships other floating cold storages: An annual tax equal 4% value raw halibut, halibut livers viscera, salmon bottom fish, shellfish fishing resource bought otherwise obtained processing through freezing. The material under this be actual price paid same including indirect considerations such fuel supplies furnished by processor offsets cash gear etc. Such herein mentioned is procured company owned subsidized boats operated employees lease arrangement.' 4 Respondents1 use freezer taking preservation along shores. These 'catcher boats' respondents own have contract catch off Alaska. sometimes purchase from independent fishermen. 5 Bristol Bay famous ground salmon. When operating area, anchor more than three miles coast, because shallow waters Bay. They serve base their catcher that fish within territorial waters. areas both stay boats—which shallow-draft known gillnetters—have load desire discontinue when open season ends, they return 'mother' ship unload. usually dumped into quick-freezing brine tanks. At times placed freezing compartments frozen blasts air. eventually Puget Sound State Washington where canned. 7 brought these suits District Court claimed due owing foregoing Act. entered judgments plaintiff. 140 F.Supp. 190, 16 126. It held taxable event, not fish. 8 On appeal Appeals were caught waters, even though remained outside three-mile limit. view 'operated itself but an extension ship's operations.' held, however, responsible taken 'by purchased ships' There rehearing en banc incident 'the storage aboard ships.' could levied if received reasoned inseparable part interstate commerce taxed locally loading unloading carriers. Cf. Joseph v. Carter & Weekes Stevedoring Co., 330 422, 67 815, 91 L.Ed. 993; Richfield Oil Corp. Board Equalization, 329 69, 156, 80. Accordingly it reversed 9 Cir., 277 F.2d 120. case here petition certiorari we granted importance ruling new 364 811, 45, 44. We put one side specialized cases supra, arise Export-Import Clause Constitution (Art. I, § 10, cl. 2), none involved destined foreign country. also consider irrelevant state laid gross receipts stevedore who vessels engaged commerce. A intergral movement might imposed States 'with net effect prejudicing unduly burdening commerce' said Michigan-Wisconsin Pipe Line Co. Calvert, 347 157, 166, 74 396, 401, 98 583. 10 no problem here. This those 'prosecuting * fisheries.' question specified subsection (b): 'Freezer storages.' To sure, computed 'value' 'bought freezing.' That, measure tax, event. event 'prosecuting' 'business' Part is, course, transporting interstate. Yet plain more—much more—than carrier. freeze transport them Taking directly obtaining fishermen respondents' business. Without would function perform. 11 clear has power regulate control activity her at least absence conflicting federal legislation. Skiriotes Florida, 313 75, 61 924, 928, 85 1193. That law forbidding certain equipment sponges two marine leagues mean low tide Florida's coast. upheld sponge manner Congress had adopted inconsistent regulation. See Toomer Witsell, 334 385, 393, 68 1156, 1161, 92 1460. jurisdiction operations waters—whether activities purchasing others—is equally clear. Wisconsin J. C. Penney 311 435, 444, 246, 250, 267; Ott Mississippi Valley Barge 336 169, 174, 69 432, 93 585. 12 If all area beyond reach. But since some before us acquired there, operate 'freezer For know record particular practically inseparable. Fish highly perishable cannot kept fresh very long latitude. process gathering either fleet operators 'local activity' (Michigan-Wisconsin 400) vivid sense term. see reason why our involving shrimp (Toomer supra) extraction ore (Oliver Iron Mining Lord, 262 172, 43 526, 929) dispositive controversy. Oliver indeed cousin present case. Here, occupation tax. market product interstate, being step leading market. local promptly loaded shipment. each there preliminary conducted—an made up series can constitutionally Catching ways 13 canning therefore discriminatory against ships. Alaskan canneries, six-percent canning;2 processors, sell fresh-frozen consumer market, one-percent tax.3 compete retail take catches south canning. Their competitors canners; canned frozen.4 look canners ships,' discrimination favor former latter. matter how computed, did exceed canners. Hence Commonwealth Pennsylvania West Virginia, 553, 595—596, 658, 664 665, 1117, hold invalid laws prefer sales over sales, inapposite. difference between competitors, 'palpably disproportionate' (International Harvester Evatt, 416, 447, 390) run afoul Commerce Clause. No 'iron rule equality' different types necessary. Caskey Baking 117, 119 121, 881, 882—883, 1223; Morf Bingaman, 298 407, 414, 56 756, 80 1245; Capitol Greyhound Lines Brice, 339 542, 546—547, 70 806, 808—809, 94 1053. 14 judgment reversed. Since many any, waters,5 remand cause proceedings conformity opinion. 15 Reversed. HARLAN, dissenting. 17 reluctance I reached conclusion offends Federal Constitution. 8, 3.) 18 concluded statute ship, based words (quoted pages 199—200 Court's U.S., page S.Ct.), fact sale consumption untaxed, 'applies whether gillnetters appellants.' Id., 125—126. Accepting, do, construction statute, agree privilege directed solely shipboard freezing, preparatory shipment, exceeds limitations imposes upon States, requirement asserts deny what necessary right make purchases. York Manufacturing Colley, 247 21, 38 430, 62 963.* 19 As understand opinion, seeks meet objection denying says rather boats. incidence constitutional given circumstances, think place higher markets places markets. 596, 597, 1117. shown scheme taxation boats, commerce, must pay later four whose sold consumers shore-based sells his pays all. 20 reasons affirm Appeals. One corporation. Four remaining partnerships members citizens United residents California Washington. Pacific Reefer owner II, lien asserted exist virtue previous owner. too L.1949, 82, 1(a), amended, 113, 97, canneries care of; merely adjunct industry. contends reach usual claim merits express regard charges toll transportation natural resources. Brown, Open Economy: Frankfurter Position Judiciary, Yale L.J. 219, 232—233.

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