Budd v. New York

143 U.S. 517, 12 S. Ct. 468, 36 L. Ed. 247, 1892 U.S. LEXIS 2039
CourtSupreme Court of the United States
DecidedFebruary 29, 1892
Docket719, 644, 645
StatusPublished
Cited by207 cases

This text of 143 U.S. 517 (Budd v. New York) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Budd v. New York, 143 U.S. 517, 12 S. Ct. 468, 36 L. Ed. 247, 1892 U.S. LEXIS 2039 (1892).

Opinions

Me. Justice Blatchfokd,

after stating the cáse, delivered the opinion of the court.

The -main question involved in these cases is whether this court will adhere to its decision in Munn v. Illinois, 94 U. S. 113.

The Court of Appeals of New York, in People v. Budd, 117 N. Y. 1, held that chapter 581 of the laws of 1888 did not violate the constitutional guarantee protecting'private property, but was a legitimate exercise of the police power of the State over a business affected with a public interest. In regard to the indictment against Budd, it held that the charge ' of/ exacting' more than the .statute; rate for elevating was proved; and that .as to the alleged overcharge, for shovelling, it [529]*529appeared that tbe carrier was compelled to pay $4 for each 1000 bushels of grain, which was the charge of the shovellers’ union, by which the work was performed, and that the union paid the elevator, for the use of the latter’s steam shovel, $1Y5 for each 1000 bushels. The court held that there was no error in submitting to the jury the question as to the overcharge for shovelling; that the intention of the statute was to confine the charge to the “ actual cost ” of the outside labor required; and that a violation of the act in that particular was proved; but that, as the verdict and sentence were justified by proof of the overcharge for' elevating, even if the alleged overcharge for ' shovelling was not made out, the ruling of the Superior Court of Buffalo could not have prejudiced Budd. Of course, this court, in these cases, can consider only the Federal questions involved.

It is claimed, on behalf of Budd, that the statute of the State of New York is unconstitutional, because contrary to the provisions of section 1 of the Fourteenth' Amendment to the Constitution of the United States, in depriving the citizen of his property without due process of law; that it is unconstitutional in fixing the maximum charge for elevating, receiving, weighing and discharging grain by means of floating and stationary elevators and warehouses at five-eighths of one cent á bushel and in forbidding the citizen to make any profit upon the use of his property or labor; and that the police power of the State extends only to property or business which is devoted by its owner to the public, by a. grant to the public of the right to demand its use. It is claimed on behalf of Annan and Pinto that floating and stationary elevators in the port of New York are private property, not affected with any public interest, and not subject to the regulation of rates.

“Trimming” in the canal-boat,..spoken of in the statute, is shovelling the grain from one".place to another, and is done by longshoremen with scoops or shovels; and “trimming” the ship’s cargo when loading is stowing it and securing it for the voyage. Floating elevators are primarily boats. Some are scows, and have to be towedfrom place to place by steam tugs; but the majority are propellers. When the .floating elevator ’ [530]*530arrives at the ship and makes fast alongside of her, the canal-boat carrying the grain is made fast on the other side of the elevator. A long wooden tube, called “ the leg of the el evator,” and spoken of in the statute, is lowered from the' tower of the elevator so that its lower end enters the hold of the canal-boat in the midst of the grain. The “ spout ” of the elevator is low- . ered into the ship’s hold. The machinery of the elevator is then set in motion, the grain is elevated out of the canal-boat, received and weighed in the elevator, and discharged into the ship. The grain is lifted in “buckets” fastened to an endless belt which moves up and down in the leg of the elevator. The »lower end of the leg is buried in the grain so that the buckets are submerged in it. As the belt moves, each bucket goes up full of grain, and at the upper end of the leg, in the elevator tower, empties its contents into the hopper which receives the grain. The operation would cease unless the grain was trimmed or shovelled to the leg as fast as it is carried up by the buckets. There is a gang of longshoremen who shovel the grain from all parts of the hold of the canal-boat to “ the leg of the elevator,” . so that the. buckets may be always covered with grain at the lower end of the leg. This “ trimming or shovelling to the leg. of the elevator,” when the canal-boat is unloading, is that part of the work which the elevator owner is required to do at the actual cost;”

. In the Budd and Pinto cases, the elevator was a stationary one on land; and in the Annan case, it was a floating elevator. i.In the Budd case, the Court of Appeals held that the words “ actual cost,” used in the statute, were intended to exclude any charge by the elevator beyond t}ie sum specified, for the use of its machinery in shovelling, and the ordinary expenses of operating it, and to confine the charge to • the actual cost of the outside labor required for trimming and bringing the grain to the leg of the elevator; and that the purpose of the statute could be easily evaded and defeated if the elevator owner were permitted to separate the services, and charge for the use of the steam shovel any sum which might be agreed upon between him and the shovellers’ union, and thereby, under color of charging for the use of his steam shovel, exact from the [531]*531carrier a sum for elevating beyond the rate fixed therefor by the statute.

The Court of Appeals, in its-opinion in the JBudd case, considered fully the question as to whether the legislature had power, under the constitution of the State of New York, to prescribe a maximum charge for elevating grain by stationary elevators, owned by individuals or corporations who had appropriated their property to that use and were engaged in that business; and it answered the inquiry in the affirmative. It also reviewed the case of Munn v. Illinois, 94 U. S. 113, and arrived at the conclusion that this court there held that the legislation in question in that case was a lawful exercise of legislative power, and did not infringe that clause of the Fourteenth Amendment to the Constitution of the United States ■which provides that no State shall “ deprive any person of life, liberty or property without due process of law;” and that the legislation in question in that case was similar to, and not distinguishable in principle from, the act of the State of New York.

In regard to Munn v. Illinois, the Court of Appeals said that the question in that case was raised by an individual owning an elevator and warehouse in Chicago, erected for, and in connection with which he had carried on, the business of elevating and storing grain, many years prior to the passage of the act in question, and prior also to the adoption of the amendment to the constitution of Illinois, in 1870, declaring all elevators and warehouses, where grain or other property is stored for a compensation, to be public warehouses. The Court of Appeals then cited the cases of People ex rel. etc. v. B. & A. R. R. Co., 70 N. Y. 569; Bertholf v. O'Reilly, 74 N. Y. 509; B. E. S. R. R. Co. v. B. S. R. R. Co., 111 N. Y. 132 ; and People v. King, 110 N. Y. 418, as cases in which Munn v. Illinois had been referred to by it, and said that it could not overrule and disregard Munn v. Illinois without subverting the principle of its own decision in People v.

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Bluebook (online)
143 U.S. 517, 12 S. Ct. 468, 36 L. Ed. 247, 1892 U.S. LEXIS 2039, Counsel Stack Legal Research, https://law.counselstack.com/opinion/budd-v-new-york-scotus-1892.