City of Chicago v. Willett Co.

344 U.S. 574, 73 S. Ct. 460, 97 L. Ed. 2d 559, 97 L. Ed. 559, 1953 U.S. LEXIS 2393
CourtSupreme Court of the United States
DecidedFebruary 9, 1953
Docket23
StatusPublished
Cited by15 cases

This text of 344 U.S. 574 (City of Chicago v. Willett Co.) 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
City of Chicago v. Willett Co., 344 U.S. 574, 73 S. Ct. 460, 97 L. Ed. 2d 559, 97 L. Ed. 559, 1953 U.S. LEXIS 2393 (1953).

Opinions

Mr. Justice Frankfurter

delivered the opinion of the Court.

Once more we are called upon to pass on the validity of a tax which falls in some measure upon commerce “among the several States.” In the situation before us, [575]*575it is not a tax imposed on interstate commerce as such. It is a tax intended to fall on business done “within the city” that levies it, although in part it is imposed on carriers of intrastate and interstate commerce inseparably commingled. The tax is on trucks and is levied by an ordinance of the City of Chicago, of which the relevant portions are set out in the margin.1 It is graduated according to size, ranging from $8.25 on a truck of no more than two-ton capacity to $16.50 on a truck of more than four-ton capacity. Penalties are provided for failure to pay the tax.

Respondent is an Illinois corporation and has its place of business in Chicago. It owns a fleet of trucks which it employs to transport goods within Chicago, between Chicago and other points in Illinois, and between Chicago, and other points in Illinois, and points in Indiana [576]*576and Wisconsin. It is stipulated that each of respondent’s vehicles “during every single day of the year carries on it along with property which never leaves the city . . . property destined to some point outside the State of Illinois.”

Upon respondent’s failure to pay the tax the present proceedings were instituted by the City of Chicago in its Municipal Court. The verdict having gone against the City, the Supreme Court of Illinois, on appeal, affirmed the judgment of acquittal, holding that respondent was “not subject to the license tax” because it “cannot separate its loads, nor can it discontinue any part of the service.” City of Chicago v. Willett Co., 406 Ill. 286, 295, 94 N. E. 2d 195, 200.

Being left in doubt by the Illinois court’s opinion whether it had held that the ordinance could not, because of the Commerce Clause, be validly applied to the respondent’s situation or had construed the ordinance so as not to cover a situation like respondent’s, we granted cer-tiorari and remanded for clarification. 341 U. S. 913. A restatement of its holding left us in no doubt that the Supreme Court of Illinois did not rest its affirmance on a restrictive construction of the ordinance, excluding respondent from its scope, but found that as applied to respondent the ordinance runs afoul of the Commerce Clause. City of Chicago v. Willett Co., 409 Ill. 480, 101 N. E. 2d 205. We granted certiorari to review this judgment because it raises questions of importance to the Nation’s major transportation centers. 343 U. S. 940.

“It being once admitted, as of course it must be, that not every law that affects commerce among the States is a regulation of it in a constitutional sense, nice distinctions are to be expected.” Galveston, Harrisburg & San Antonio R. Co. v. Texas, 210 U. S. 217, 225. This case does not raise the difficulties so often encountered [577]*577when determination of the validity of State action affecting interstate commerce requires an accommodation between a State’s undoubted power over its own internal commerce and the national interest in the unrestricted flow of interstate commerce. This tax, as it falls on respondent, an Illinois corporation having its place of business in Chicago, is clearly unassailable under the authority of New York Central R. Co. v. Miller, 202 U. S. 584, which we reaffirmed in Northwest Airlines, Inc. v. Minnesota, 322 U. S. 292. However, “nice distinctions” have been argued to us and they should be considered.

It is said on the one hand that Osborne v. Florida, 164 U. S. 650, Pullman Co. v. Adams, 189 U. S. 420, and Pacific Telephone Co. v. Tax Commission, 297 U. S. 403, decide this case, and on the other that it is controlled by cases such as Adams Express Co. v. New York, 232 U. S. 14, Bowman v. Continental Oil Co., 256 U. S. 642, Sprout v. South Bend, 277 U. S. 163, and Cooney v. Mountain States Telephone Co., 294 U. S. 384. As was true in Pacific Telephone Co. v. Tax Commission, supra, the taxpayer’s principal argument in this case has been that the tax is necessarily void because the taxpayer is not free to withdraw from the local business, which alone the statute purports to tax, without discontinuing its interstate business as well. Respondent relies heavily on Sprout v. South Bend, supra. But Mr. Justice Brandéis, who wrote for the Court in Sprout, pointed out in the Pacific Telephone case that in Sprout the taxpayer could not avoid the tax by restricting himself to interstate business only and withdrawing from local business, because the tax, by its terms, fell on exclusively interstate, as well as intrastate, business conducted from the City of South Bend. 297 U. S., at 416-417. That was the controlling fact in Sprout, which was absent in the Pacific Telephone [578]*578case, and is absent in this case also, since the Illinois Supreme Court has told us that the Chicago ordinance is not to be read as imposing a tax on trucks which do not carry goods within the City. City of Chicago v. Willett Co., supra, 406 Ill., at 289-290, 94 N. E. 2d, at 197-198. Thus, as regards the main point pressed by respondent, the Chicago tax avoids the infirmity laid bare by the Sprout case, and meets the facts of Osborne v. Florida, supra, and Pullman Co. v. Adams, supra, as did the Pacific Telephone case. Again, as in Pacific Telephone, the taxpayer here makes no showing that the tax, though directed at intrastate business only, in fact burdens interstate commerce. This is for the taxpayer to show affirmatively and respondent has made no attempt to do so.

But, if it were necessary to decide upon the basis of the “nice distinctions” urged upon us, we could not rest without more on the authority of Pacific Telephone. For the tax in that case was measured by a percentage of the gross income drawn solely from intrastate business. Although the taxpayer’s intrastate and interstate activities were inseparable, the tax was not laid inseparably on both. 297 U. S., at 414. That is not true in this case. Here the tax falls inseparably on what have been called instrumentalities of interstate commerce, which are at once also those of intrastate commerce.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Browning-Ferris, Inc. v. Anne Arundel County
438 A.2d 269 (Court of Appeals of Maryland, 1981)
HC&D Moving & Storage Co. v. Yamane
405 P.2d 382 (Hawaii Supreme Court, 1965)
Untitled Texas Attorney General Opinion
Texas Attorney General Reports, 1961
O'Brien v. State Tax Commission
158 N.E.2d 146 (Massachusetts Supreme Judicial Court, 1959)
Bruce Motor Freight, Inc. v. Lauterbach
77 N.W.2d 613 (Supreme Court of Iowa, 1956)
National Schools v. City of Los Angeles
287 P.2d 151 (California Court of Appeal, 1955)
Commonwealth v. Trott
120 N.E.2d 289 (Massachusetts Supreme Judicial Court, 1954)
Roy Stone Transfer Corp. v. Messner
103 A.2d 700 (Supreme Court of Pennsylvania, 1954)
City of Chicago v. Willett Co.
115 N.E.2d 785 (Illinois Supreme Court, 1953)
McCaw Keating v. Tax Com'r Fase
40 Haw. 121 (Hawaii Supreme Court, 1953)
City of Chicago v. Willett Co.
344 U.S. 574 (Supreme Court, 1953)

Cite This Page — Counsel Stack

Bluebook (online)
344 U.S. 574, 73 S. Ct. 460, 97 L. Ed. 2d 559, 97 L. Ed. 559, 1953 U.S. LEXIS 2393, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-chicago-v-willett-co-scotus-1953.