Packet Co. v. Keokuk

95 U.S. 80, 24 L. Ed. 377, 1877 U.S. LEXIS 2137
CourtSupreme Court of the United States
DecidedNovember 18, 1877
Docket923
StatusPublished
Cited by157 cases

This text of 95 U.S. 80 (Packet Co. v. Keokuk) 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
Packet Co. v. Keokuk, 95 U.S. 80, 24 L. Ed. 377, 1877 U.S. LEXIS 2137 (1877).

Opinion

Mr. Justice Strong

delivered the opinion of the court.

The principal question presented by the record of' this, case is,, whether a municipal corporation of a State, having by the law of its organization an exclusive right to make wharves, collect wharfage, and regulate wharfage rates, can, consistently with the Constitution of the. United States* charge and collect wharfage proportioned to the tonnage.of the vessels from the' owners of enrolled and licensed steamboats mooring and landing at' the wharves constructed cm- the banks of a navigable river.

The city of Keokuk is such a corporation, existing by virtue of a special charter granted by the legislature of Iowa. To determine whether the charge prescribed by the ordinance in question is a duty of tonnage, within the meaning of the Constitution, it is necessary to observe carefully its object and essence. If the charge is clearly a duty, a tax, or burden, which in its essence is a contribution claimed for the privilege of entering the port of Keokuk, or remaining in it, or departing from it, imposed, as .it is, by authority of .the State, and measured by the capacity of the vessel, it is doubtless embraced by the constitutional prohibition of such a duty. But a charge for services rendered or for conveniences provided is in no sense a tax pr a duty. ' It is not a hindrance or impediment to free navigation 'The prohibition to the State against the iinposi *85 tion of a duty of- tonnage was designed to. guard against local hindrances* to trade and carriage by vessels, not to relieve them from liability to claims for assistance rendered and facilities furnished for trade and commerce. It is a tax ór a duty, that is prohibited: something.imposed by virtue of sovereignty, not claimed in right of proprietorship. Wharfage' is of the latter character. Providing a wharf to which vessels may make fast, or at which they may conveniently load or unload, is rendering them a service. The character of the service is the same whether the wharf is built and offered for use by a State, a municipal corporation, or a private individual; and, when compensation is demanded for the, use of the wharf, the demand is an assertion, not of sovereignty, but of a right of property. A passing vessel may use the wharf or not, at its election, and thus may incur liability for wharfage or not, at the choice of the master or owner. No one would claim that a demand of compensation for the use of a dry-dock for repairing a vessel, or a demand for towage in a harbor, would be a demand of a tonnage tax, no matter whether the dock was the property of a private individual or of a State, and no matter whether proportioned or not to the size or tonnage of the vessel. There is no essential difference between such a demanu and one for the use of a wharf. It has always been held that wharfage dues may be exacted; and it is believed that they have been collected in ports where the wharves have belonged to the State or a municipal corporation ever since the adoption of the Constitution. In Cannon v. New Orleans, 20 Wall. 577, this court, while holding an ordinance void that fixed dues upon steamboats which should moor or land in any part of the port of New Orleans, measured by the number of tons of the boats, because substantially a tax for the privilege of stopping in the port, and, therefore, a. duty or tonnage, carefully guarded the right to exact wharfage. The language of the court rvas: “ In saying this (namely, denying the validity of the ordinance then before it), -we do not understand that this principle interposes any hindrance to the recovery from any vessel landing at a wharf or pier owned by an individual, or by a municipal or other corporation, a just compensation for the use of such property. It is a doctrine too well settled, and a practice too *86 common and too essential to the interests of commerce and navigation, to admit of a doubt, that for the use of such structures, erected by individual enterprise and recognized everywhere as private property, a reasonable compensation can be exacted.. And it may be safely admitted, also, that it is within the power of the State to regulate this compensation, so as to prevent extortion, a power which is often very properly delegated to the local municipal authority. Nor do we see any reason why, when a city ,or other municipality is the owner of such structures, built by its own money, to assist vessels landing within its limits in the pursuit of their business, the city should not be allowed to exact and receive this reasonable compensation, as'well as individuals.” .

No doubt, neither a State nor a municipal corporation can be permitted to impose a tax upon tonnage under cover of laws or ordinances ostensibly passed to collect wharfage. This has sometimes bqen attempted, but the ordinances will always be-carefully scrutinized. In Cannon v. New Orleans, the ordinance was held invalid, not because the charge was for wharf-age, nor éven because it was proportioned to the tonnage of the vessels, but because the charge was not for wharfage or any service rendered. It was for stopping in the harbor, though no wharf was used. Such, also, was North-western Packet Co. v. St. Paul, 3 Dill. 454. So, in Steamship Company v. Port Wardens, 6 Wall. 31, the statute held void imposed a tax upon every ship entering the port. This was held to be alike a regulation of commerce and a duty of tonnage. It was a sovereign exaction, not a charge for compensation. Of the same character was the tax held prohibited in Peete v. Morgan, 19 id. 581.

It is insisted, however, on behalf of the plaintiffs in error, that the charge prescribed by the ordinance must be considered as an imposition of a duty of tonnage, because it, is regulated by and proportioned to the number of tons of the vessels using the wharf; and the argument is attempted to be supported by the ruling of this court in State Tonnage Tax Cases, 12 Wall. 204. But this is a misconception of those cases. The statute of Alabama declared invalid was not a provision to secure or regulate compensation for wharfage, or for any services rendered *87 to the vessels taxed. It imposed a tax “upon all steamboats, vessels, and other water-crafts plying in the navigable waters of the State,” to be levied “ at the rate of- one dollar per ton of the registered tonnage thereof.” It did not tax the boats as property in proportion to their value, but according to their capacity, or, as was said, “ solely and exclusively on the basis of their cubical contents, as' ascertained by the rules of admeasurement -and computation prescribed by Congress.” It was the nature of the tax or duty, coupled with the mode of assessing it, which made the law a violation of the Constitution. As stated, the vessels taxed were such as were plying in the navigable waters- of the State. If not plying.'in those waters, they were not taxed. The tax was, therefore, an impediment to navigation in those waters, which led the court to say that it was as instruments of commerce and not as property the vessels were required to contribute to the revenues of the State.

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

Related

Wendella Sightseeing Company, Inc. v. City of Chicago
2023 IL App (1st) 211371 (Appellate Court of Illinois, 2023)
Com. v. Murray, U.
Superior Court of Pennsylvania, 2014
Com. v. Bizzel, J.
Superior Court of Pennsylvania, 2014
Dekalb County, Georgia v. United States
108 Fed. Cl. 681 (Federal Claims, 2013)
Captain Andy's Sailing, Inc. v. Johns
195 F. Supp. 2d 1157 (D. Hawaii, 2001)
National Railroad Passenger Corp. v. City of New York
695 F. Supp. 1570 (S.D. New York, 1988)
Indiana Port Commission v. Bethlehem Steel Corp.
534 F. Supp. 858 (N.D. Indiana, 1981)
Sea-Land Services, Inc. v. Municipality of San Juan
505 F. Supp. 533 (D. Puerto Rico, 1980)
Bock v. City Council
109 Cal. App. 3d 52 (California Court of Appeal, 1980)
Reinhardt v. Anne Arundel County
356 A.2d 917 (Court of Special Appeals of Maryland, 1976)
Ago
Florida Attorney General Reports, 1975
Toye Bros. v. Irby
437 F.2d 806 (Fifth Circuit, 1971)
Scandinavian Airlines System, Inc. v. County of Los Angeles
363 P.2d 25 (California Supreme Court, 1961)
City of De Pere v. Public Service Commission
63 N.W.2d 764 (Wisconsin Supreme Court, 1954)
Genkinger v. New Castle
84 A.2d 303 (Supreme Court of Pennsylvania, 1951)
Reitz v. Mealey
34 F. Supp. 532 (N.D. New York, 1940)
SC Hwy. Dept. v. Barnwell Bros.
303 U.S. 177 (Supreme Court, 1938)
McNeely & Price Co. v. Philadelphia Piers, Inc.
196 A. 846 (Supreme Court of Pennsylvania, 1937)

Cite This Page — Counsel Stack

Bluebook (online)
95 U.S. 80, 24 L. Ed. 377, 1877 U.S. LEXIS 2137, Counsel Stack Legal Research, https://law.counselstack.com/opinion/packet-co-v-keokuk-scotus-1877.