Clarke v. Philadelphia, Wilmington & Baltimore Railroad

9 Del. 158
CourtSupreme Court of Delaware
DecidedJuly 1, 1870
StatusPublished

This text of 9 Del. 158 (Clarke v. Philadelphia, Wilmington & Baltimore Railroad) is published on Counsel Stack Legal Research, covering Supreme Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clarke v. Philadelphia, Wilmington & Baltimore Railroad, 9 Del. 158 (Del. 1870).

Opinion

Bates, Chancellor,

delivered the opinion of the Court. The Supreme Court of the United States have decided in Crandall v The State of Nevada, 6 Wallace, 35, that the several States of the Union have not the constitutional [190]*190power to impose a tax upon inter-state travel. In this conclusion the Supreme Court was unanimous. The authority of the decision is not impaired by the fact that the judges assigned different grounds for their respective opinions. Some of them considering that such a tax is a regulation of commerce, and prohibited to the State Legislatures by what is known as the commercial clause of the Federal Constitution, and others, (who constituted the majority of the Court,) holding that the tax is an infringement of the right of the Federal Government to the service of its citizens, free from all restrictions upon their facilities for travel. Also an infringement of the citizen’s right of free transit between all parts of the common ( country, as a right inherent in a national citizenship and (protected by the constitution. The rule adjudged in the FTevada case is the supreme law of the land, and obligatory upon this Court. Waiving, therefore, a discussion of the grounds of that decision, we proceed directly to the main question in controversy, that is, whether according to the true construction of the act of August 11th, 1864, the tax is imposed upon the business of the carrier, measured by the number of passengers transported, or whether upon the passenger, to be collected for the State by the carrier. If it be the. latter, then under the ruling of the Supreme Court, the act must be held invalid so far as it operates upon persons entering into, departing from, or passing-through the State. With respect to its operation upon persons traveling between different points within the State, no question is made. It may as well be observed at this point, that no argument in support of the act can be drawn from the fact that it operates as well upon our own citizens traveling wholly within the State, as upon the citizens of other States passing into or through its territory. If the Legislature have not the constitutional power to tax a particular class of passengers, plainly that power cannot be derived by including under the tax law another class of passengers who may constitutionally be taxed. Legislative acts to the validity of which the question of discrim[191]*191ination becomes material, are those which deal with a subject matter fully within the constitutional power of the Legislature of a State, but deal with it in a mode affecting unequally its own citizens and the citizens of other States-, contrary to that clause of the Federal Constitution which secures to the citizens of each State “all privileges and immunities of citizens of the several States.”—(Art 4, Sec. 2d.) As if citizens of other States should be placed upon an unequal footing with our own citizens under laws for the administration of public justice, or touching the descent of real estate, or the distribution of the personal estate of intestates; or, as if in the taxing of lands situated within the State, non-resident real estate owners were taxed more heavily than our own citizens holding lands. But in the present case the Supreme Court having decided that inter-state travel is beyond the taxing power of the State, the only question is whether this act undertakes to tax the forbidden subject-matter; and it is quite immaterial whether the act also operates upon travel within the State, a subject-matter under State control.

We will now examine the provisions of the act of 1864. It is true that the tax is declared to be,a tax upon the carrier, that he is required to pay it into the State Treasury, and he is to pay it at all events, whether it be in fact collected out of the passenger or not. The provision is, (Sec. 1.) that “every person, corporation, or association or company “of persons not a corporation, engaged, or that may here- “ after engage in the business of transporting or carrying “passengers by steam power, whether on land or water, in, “through, upon, over or across any portion of this State, or “ within the territorial limits of the same, shall on the first “ day of October next, and thereafter monthly, on the first “ day of each month, or within five days thereafter, pay “ into the hands of the State Treasurer, for the use of the “ State, a tax at and after the rate of ten cents for every “ passenger so transported within this State during the “ month then just ended.” Did the act stop here, or add only such provisions as should be requisite for ascertaining [192]*192the number of passengers and for enforcing payment by the carrier of the ten cents per head, then the tax might be treated as one imposed upon the carrier. But there are other provisions in the act, by the operation of which the tax although in terms levied upon the carrier, was nevertheless in the contemplation of the legislature and under the authority of the act, to be drawn from the passenger, so as to leave no actual charge upon the business of the carrier. This makes it in substance and effect a tax upon the passenger.

Let us look closely into these provisions:—First,observe the 4th Section. This section confers authority for collecting the tax in all cases out of the passenger; that is, it confers the power to do so upon a class of corporations previously.restricted by their charters as to the amount of tolls to be charged for the carriage of passengers ; and it recognizes the power and sanctions its exercise on the part of all other corporations and carriers which had not been so restricted. The section runs thus:—“Incase there be “ in the charter of any corporation liable to the provisions “ of this act, any clause or provision so restricting the “ amount of toll to be charged for the transportation ot passengers, as that this act would according to the present rate of charges by the said corporation, operate “ unjustly against it, then it is hereby declared and enacted “ that the said corporation shall have the right to increase “ the said toll to the amount of the tax herein provided “for.” How, the manifest purpose of this provision and its direct effect is to carry the tax over from the carrier on whom the first section left it, to the passenger. It declares that to leave a corporation disabled by reason of any existing restriction upon its power to charge tolls, from adding the ten cents to its fares, would “ operate unjustly against it, ” and so, striking away all such restrictions, it leaves all carriers armed with authority and having its express sanction to draw the tax out of the passenger, as being his proper charge or burden, and not theirs. The want of power in a corporation to collect the tax from [193]*193the passenger would, indeed, “ operate unjustly” against the corporation, if it was the passenger who was intended to bear the tax, but certainly not so, if the tax was considered the carrier’s own burden. In the latter case plainly the injustice to be prevented would be, not the absence of power in some corporations to collect the tax from the passenger, but the exercise of such a power by any corporation ; and in order to keep the burden where, upon the plaintiff’s theory, it was intended to rest, the act should have extended to all carriers the restriction against adding it to their fares, rather than have removed it from those already subject to it.

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Bluebook (online)
9 Del. 158, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clarke-v-philadelphia-wilmington-baltimore-railroad-del-1870.