Padelford, Fay Co. v. Mayor Ald. City Savannah.

14 Ga. 438
CourtSupreme Court of Georgia
DecidedJanuary 5, 1854
DocketNo. 64.
StatusPublished
Cited by21 cases

This text of 14 Ga. 438 (Padelford, Fay Co. v. Mayor Ald. City Savannah.) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Padelford, Fay Co. v. Mayor Ald. City Savannah., 14 Ga. 438 (Ga. 1854).

Opinion

By the Court.

Benning, J.,

delivering the opinion.

But a single question is presented for decision in this case; *441 and that is, whether the Ordinance of the City Council of Savannah violates the Constitution of the United States.

The plaintiffs in error insist that it violates two of the provisions of the Constitution — that which declares that Congress shall have power “ To regulate commerce with foreign nations and among the several States” ; and that which declares that “ No State shall, without the consent of the Congress, lay any imposts or duties on imports or exports, except what may be absolutely necessary for executing its Inspection Laws”.

The question is one of the utmost importance. The State has passed many unconstitutional Tax Laws, if this be unconstitutional. The great Tax Act of 1804, declared that “ Thirty-one and a quarter cents shall be levied on every hundred dollars’ value of all person’s stoclc in trade”.

Also, “That way non-resident who shall expose to sale any goods in this State, shall, on his arrival, or within seven days after entering the same, make return,” &c.

The Act of 1821 declares that there shall be paid to the State “ A tax of thirty-one and a quarter cents on every hundred dollars’ value of stock operated upon by the Steamboat Company of Gfeorgia”.

The Act of 1840 declares that the tax “ On capital employed in the business of Brokerage, and capital employed by Insurance and Trust Companies, in this State, shall be the thirty-one and a quarter cents on every hundred dollars so invested”.

The Act of 1845 lays “ On all agencies of Banks authorized by other States, and kept within this State, a tax of eight cents on every hundred dollars, on the amount of exchange bought and sold”.

The Act of 1850 imposes a tax on “Each and every agent of any foreign Bank or individual residing in another State, doing business in this State”.

The same principle that will make the Ordinance of the City Council unconstitutional, will equally make these acts so. Indeed, if the Ordinance violates the provision in the Constitution, as to the regulation of commerce, it is not very easy to see what is left to a State to tax. It can lay no tax that will *442 not more or less affect commerce; more or less prevent consumption, and without consumption there can be no commerce.

The question, then, deserves the most serious consideration.

The question, it is insisted by counsel for plaintiff, has been settled in their favor by the decision of the Supreme Court of the U. S. in the case of Brown et al. vs. Maryland, 12 Wheat. 419. That case, therefore, will be noticed.

Tho case grew out of an Act of Maryland, That all importers of foreign articles or commodities of dry goods, wares or merchandize, by bail or package, or of wine, rum, brandy, whiskey and other distilled spirituous liquors, &c. and other persons selling the same by wholesale, bale or package, &c. should, before they were authorized to sell, take out a license, for which they should pay fifty dollars.

The plaintiffs in the case Imported and sold one package of foreign dry goods, without having license to do so.”

Tho Supreme Court determined that this Act was a breach of each of the two clauses of the Constitution which I have quoted.

In relation to its being a violation of the clause which prohibits the States from laying any tax on imports or exports, without the consent of Congress, the Court, through Marshall, Q. J. say, It may be conceded, that the words of the prohibition ought not to be pressed to their utmost extent”. “ But while wo admit that sound principles of construction ought to restrain all Courts from carrying the words of the prohibition beyond the object the Constitution is intended to secure, that there must be a point of time when the prohibition ceases, and the power of the State to tax commences ;• we cannot admit that this point of time is the instant that the articles enter the country.” “ It is sufficient for the present to say, generally, that when the importer has so acted upon the thing imported, that it has become incorporated and mixed up with tho mass of property in the country, it has perhaps lost its distinctive character as an import.” This indictment is against the importer, for selling a package of dry goods in the form in which it was imported, without a license. This state of things is changed, *443 if he soils them or otherwise mixes them with the general property of the State, by breaking up his packages and travelling with them as an itinerant pedlar.”

The amount of this is, that although the mere introduction of an import into a State does not make it cease to be an import, yet, if the importer so act upon it as to make it become incorporated and mixed up with the mass of property in the country, as by selling it or breaking up the package in which it is contained, it does then cease to be an import; and that as soon as it ceases to be an import, it may be,,taxed by the State.

Is this case analagous to the one we are deciding ? It is not. It wms a case in which the Law prohibited the importer from selling the import. This is a case in which the Law lets him sell the import, but lays a tax on what he gets for it, on the gross amount of money which he receives for it. Now this money, it is, which is taxed. And it is something which u Had been incorporated and mixed up with the mass of property in the country.” Something as different from “A package of dry goods, in the form in which it was imported”, as that package, when sold, would be different from itself, in the form in which it was imported, or as that package, when broken up, would be different from itself, before its being broken up.

According to the principles, then, of Brown vs. Maryland, the State can, rather than cannot, tax this something — this money — the proceeds of the sale of the imports.

Again, the gross amount of sales arc not the exact equivalents to the seller of the things sold. This amount is made of the cost of the goods sold and of the seller’s profits, on them. Where do these profits come from ? They, at least, are not imports. A tax on the gross amount of sales, is a tax, in part, on these profits.

And all of the expenses to which the importer is put, after liis import gets into the country, to bring it to sale, also enter into the gross amount of sales. His agents, his store-houses,, his insurers, all cost him money. This cost he puts in the price of the import when he sells it. Now cannot the State lay a tax on those profits — these services of agents — -these storages— *444 these insurances ? A tax on the gross amount of sales is a tax, in part, on these things. But a tax on the naked import, is not a tax on any of them.

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Cite This Page — Counsel Stack

Bluebook (online)
14 Ga. 438, Counsel Stack Legal Research, https://law.counselstack.com/opinion/padelford-fay-co-v-mayor-ald-city-savannah-ga-1854.