Di Santo v. Pennsylvania
Dissenting Opinion
dissenting.
I agree with all that Me. Justice Beandeis has said,. but I would add a word with respéct to one phase of the •matter which seems to' me of some importance. We are not here concerned with' a question of taxation to which other considerations may apply, but with state regulation of what may be conceded to be an instrumentality of foreign commerce. As this Court has many times decided, the purpose of thé commerce clause was not to preclude all state regulation of commerce crossing state
The recognition of the power of the states to regulate commerce within certain limits is a recognition that there are matters of local concern which may properly be subject to state regulation and which, because of their local character, as well as their number and diversity, can never be adequately dealt with by Congress. Such regulation, so long as it does not impede the free flow of commerce, may properly be and for the most part has been left to the states by the decisions of this Court.
In this case the traditional test of the limit of state action by inquiring whether the interference with commerce is direct or indirect seems to me too mechanical, too uncertain in its application, and too remote from actualities, to be of value. In thus making use of the expressions, “ direct ” and “ indirect interference ” with commerce, we are doing little more than using labels to describe a result rather than any trustworthy formula by which it is reached.
It is difficult to say that súch permitted-interferences as those enumerated in Me. Justice Brandéis' opinion are less direct than the interference prohibited here. But it seems clear that those interferences not deemed forbidden are to be sustained; not because the effect on commerce is nominally indirect, but because a consideration of all the facts and circumstances, such as the nature of the regulation, .its function, the character of the business involved and the actual effect on the flow of commerce, lead to the conclusion that the regulation concerns interests peculiarly local and does not infringe the national interest in maintaining the freedom of commerce across state lines.
I am not persuaded that the regulation here is more than local in character or that it interposes any barrier
Opinion of the Court
delivered the opinion of the Court.
Plaintiff in error was indicted in the Court of Quarter Sessions of Dauphin County, Pennsylvania, for a violation of an Act of the Legislature of July 17, 1919, as amended by the Act of May 20, 1921, P. L. 997, requiring licenses to sell steamship tickets or orders for transportation to or from foreign countries. The indictment alleged that, December 14, 1921, without having obtained a license so to do, plaintiff in error held himself out as authorized to sell tickets and orders for transportation as agent of certain steamship companies, and that he engaged in thé sale of such tickets. There was no.controversy as to the facts; and, by direction of the court, the jury returned a verdict of guilty. Plaintiff in error, by motion in arrest of judgment, challenged the validity of the Act on the ground that it contravenes the commerce clause of the, Federal Cónstitution. The court held the statute valid, and sentenced him to pay a fine. On appeal the Superior Court held the Act unconstitutional and reversed the judgment. The Supreme Court reversed the Superior Court and reinstated the- judgment of the trial court. The case is here under § 237(a) of the Judicial Code.
The Act of 1921 provides that no person or corporation, other than a railroad or steamship company, shall engage within' the State in the sale of steamship tickets or orders for transportation or shall hold himself out as authorized to sell such tickets or orders without having first procured a license. It requires every applicant to cause his application to be advertised in specified publications, to furnish proof that he is of good moral character and fit to conduct the business, to give a list of the steamship lines, not less than three, for- which he is agent, and to file a bond in the penal sum of $1,000 conditioned that he will account to all interested persons for moneys received for tickets and orders and that he will not be'guilty
Plaintiff represented four steamship companies operating steamships between the United States and Europe. Each of them gave him a certificate authorizing him to sell, at a specified place in Harrisburg, tickets and orders for transportation entitling persons therein named to passage on such steamships; and required the certificate to be posted in his office. This is in accordance with the Pennsylvania Act of 1863, P. L. 582, regulating the display of certificates by steamship agents; and a copy of that Act was printed on the certificate. The companies furnished plaintiff in error books of tickets having stubs on which to make record of tickets sold, advertising matter to be used by him, schedules of sailings, notices of cancelations of sailings, and information as to the immigration and customs services; and they authorized him to collect money for tickets sold. He usually received 25 per cent, of the price when applications were made for the tickets. He gave each coinpany a bond to account; and transmitted immediately to. his respective principals the amounts received by him.
The soliciting of passengers and the.sale of. steamship tickets and orders for passage between the United States
Judgment reversed.
Dissenting Opinion
Me. Justice Brandéis,
diásenting.
The statute is an exertion of the police power of the State. Its evident purpose is to prevent a particular species of fraud and imposition found to have been practiced in Pennsylvania upon persons of small means, unfamiliar with our language and institutions.
Although the purchase made is'of an ocean steamship ticket, the transaction regulated is wholly intrastate — as much so as if the purchase were of local real estate or of local theatre tickets.. There is no purpose on the parFof
Unlike the ordinance.considered in Texas Transport Co. v. New Orleans, 264 U. S. 160, this statute is not a revenue measure. The license fee is small. The whole of the proceeds is required to defray the expense of supervising the business. Unlike the measure considered in Real Silk Mills v. Portland, 268 U. S. 325, 336, this statute is not an instrument of discrimination against interstate or foreign commerce. Unlike that considered in Shafer v. Farmers Grain Co., 268 U. S. 189, 199, it does not affect the price of articles moving in interstate commerce. The licensing and supervision of dealers in steamship tickets is in essence an inspection law. Compare Turner v. Maryland, 107 U. S. 38.
The fact that the sale of the ticket is made as a part of a transaction in foreign or interstate commerce does not preclude application of state inspection laws, where, as here Congress has- not entered the field, and the state regulation neither obstructs, discriminates against, or directly burdens the commerce. Patapsco Guano Co. v. Board of Agriculture, 171 U. S, 345; Diamond Glue Co. v.
On the facts, the McCall case is distinguishable from that at bar. If, because of its reasoning, it is thought not to be distinguishable, it should be disregarded. The doctrine of stare decisis presents no obstacle. Disregard of the McCall case would not involve unsettlement of any •constitutional principle or of any rule of law, properly so called. It would involve merely refusal to repeat an error once made in applying a rule of law — an error which has already proved misleading as a precedent. While the question whether a particular statute has the effect of burdening interstate or foreign commerce directly presents always a question of law, the determination upon which the validity or invalidity of the statute depends, is largely or wholly one of fact. The rule of law which governs the McCall ease and the one at bar is the same. It is that a State may not obstruct, discriminate against, or directly burden interstate or foreign commerce. The question at bar is whether, as applied to existing facts,
It is usually more important that a rule of law be settled, than that it be settled right. Even where the error in declaring the rule is a” matter of serious concern, it is ordinarily better to seek correction by legislation. Often this is true although the question is a constitutional one. The human experience embodied in the doctrine of stare decisis teaches us, also, that often it is better to follow a precedent, although it does not involve the-declaration of a rule. This is usually true so far as concerns a particular statute whether the error was made in- construing it or in passing upon its validity. But the doctrine . of stare decisis does not command that we err again when we have occasion to pass upon a different statute. In the search for truth through’ the slow process of inclusion and exclusion, involving trial and error, it behooves us to reject, as guides, the decisions upon such questions which prove to have been mistaken. This course seems to me imperative when, as here, the- decision to be made involves the delicate adjustment of conflicting claims of the Fedr' eral Government and the States to regulate commerce.
A similar statute had been enacted in New York, with the approval of Governor (afterwards Mr. Justice) Charles E. Hughes. Laws of New York 1910, C.-349, amended by Laws of New York 1911, c. 578. And similar laws have been enacted also in other States. Indiana, Burns’ Aon. Stat. 1926, §§ 4681-4685; Michigan, Cahill’s Comp.
In 1910 there'were 410 of such banking businesses in Pennsylvania. Report of Immigration Commission, vol. 37, p. 209. ■ The Commission found, also, that of (he businesses (in Pennsylvania and elsewhere) examined by it, “ 94'per'cent, of the concerns engaged in the business of selling steamship'tickets were at the same'time engaged in the. business of immigrant banking. This shows that 'the relation between the two is s,o- close as to warrant the classification of them as interdependent. . . . ' Having made the start, if is'natural that he should continue to léave with the agent for safe-keeping his weekly, or monthly surplus, so that' he may accumulate- a sufficient amount for another remittance or for the purpose of buying a steamship ticket to bring his family to this country or for his own rethrn to Europe.” Ibid., p. 212.
See “ The Compact Clause of the Constitution. — A Study in Interstate Adjustments,” by Felix Frankfurter and James M. Landis, 34’-Yale Law Journal 685, 720-725,.and cases there cited; “Judicial • Determination of Questions of Fact Affecting the Constitutional Validity of Legislative Action,” by Henry Wolf Biklé, 38 Harvard Law Review 6,
See Pierce v. New Hampshire, 5 How. 504, 554, overruled by Leisy v. Hardin, 135 U. S. 100, 118; Osborne v. Mobile, 16 Wall. 479, overruled by Leloup v. Port of Mobile, 127 U. S. 640, 647-648. See State Tax on Railway Gross Receipts, 15 Wall. 284, qualified by Philadelphia S. S. Co. v. Pennsylvania, 122 U. S. 326, 342; Peik v. C. & N. W. Ry. Co., 94 U. S. 164, qualified by Wabash, St. L. & Pac. Ry. Co. v. Illinois, 118 U. S. 557; Pullman’s Palace Car Co. v. Pennsylvania, 141 U. S. 18, qualified in Union Tank Line Co. v. Wright, 249 U. S. 275; Maine v. Grand Trunk Ry. Co., 142 U. S. 217, qualified in Galveston, Harrisburg & San Antonio Ry. Co. v. Texas, 210 U. S. 217; Texas Co. v. Brown, 258 U. S. 466; Bowman v. Continental Oil Co., 256 U. S. 642; Askren v. Continental Oil Co., 252 U. S. 444, and Standard Oil Co. v. Graves, 249 U. S. 389, all qualified in Sonneborn Bros. v. Cureton, 262 U. S. 506. Compare the discussion of City of New York v. Miln, 11 Pet. 101, in Passenger Cases, 7 How. 283; that of Ficklen v. Shelby County Taxing District, 145 U. S. 1, in Crew Levick Co. v. Pennsylvania, 245 U. S. 292, 296, and in Texas Transport Co. v. New Orleans, 264 U. S. 150; that of Gulf, Colorado & Santa Fe Ry. Co. v. Texas, 204 U. S. 403, in Baltimore & Ohio Southwestern R. R. Co. v. Settle, 260 U. S. 166, 173; that of Baltic Mining Co. v. Massachusetts, 231 U. S. 68, in Alpha Cement Co. v. Massachusetts, 268 U. S. 203.
Reference
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- DI SANTO v. PENNSYLVANIA
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