Smart v. City of Albany

146 Misc. 60
CourtNew York Supreme Court
DecidedAugust 15, 1932
StatusPublished
Cited by4 cases

This text of 146 Misc. 60 (Smart v. City of Albany) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smart v. City of Albany, 146 Misc. 60 (N.Y. Super. Ct. 1932).

Opinion

Staley, J.

This is an action brought against the city of Albany and various officers thereof to have declared void two ordinances of [61]*61the city for the licensing of coal dealers, and to perpetually and during the pendency of this action restrain the enforcement thereof. The claim is made that the ordinances deprive plaintiff, a coal dealer, of property without due process of law; that they are discriminatory; that they abridge the privileges and immunities of the plaintiff as a citizen of the United States; and that they, in effect, prohibit plaintiff and others from engaging in a lawful business.

The ordinance adopted May 2, 1932, makes it unlawful for any person to engage in the retail sale or distribution of coal or coke within the limits of the city of Albany without first obtaining a license. A retail seller ” is defined in the ordinance as one who sells coal or coke in lots of not less than 100 pounds, or one who purchases in carload lots and resells and distributes the same to employees, friends, relatives or others. The ordinance also provides that an application for the license shall be made in writing and that license plates to be issued shall be publicly displayed. The license fee is fixed at $250, but may be renewed upon payment of the sum of $150. It is further provided that the license may be revoked for false statements in the application, or for violations of the laws of the State of New York in relation to the sale of coal, coke, wood, etc. Violations of the ordinance constitute a misdemeanor.

The ordinance adopted May 2,1932, was amended by an ordinance adopted July 18, 1932. The amendments are not material here.

The plaintiff, upon the summons, complaint and affidavits, procured an order to show cause why an injunction pendente lite should not be granted. The questions here presented arise on an application for -such an injunction.

It is claimed on the part of the defendants that, in the distribution of coal and coke, there are great opportunities for fraud, as the purchaser has no means of determining the quantity of the fuel sold to him, and moreover, the quality may be extremely poor without the customer being able to discover it. Complaint is made that in the winter many irresponsible peddlers profess to sell coal in small lots and at lower prices than can be obtained from legitimate dealers; whereas, such coal is of inferior quality and lots are underweight so that the purchaser is in realty being defrauded.

It is also claimed that detection of fraud is made particularly difficult because no signs appear upon the vehicles of these peddlers.

There appear to be between forty and fifty coal dealers in the city of Albany. Under this ordinance there would be an income to the city for the first year of $12,500, and for the succeeding years $7,500 at the maximum, from the licenses.

It is stated that in 1931 the coal dealers’ association appointed and paid a representative whose duty it was to investigate frauds in [62]*62the coal business, but that his employment has been discontinued. It is proposed to attach additional deputies to the office of the sealer of weights and measures for the purpose of enforcing the ordinance.

The plaintiff claims that a license fee of $250 for the first year and $150 for succeeding years is, in effect, prohibitive; that the purpose of the ordinance is to get rid of the small dealer and thus lessen competition with the large dealer; that the license fee is, in reality, a tax; and that the proceeds from the license fees are much larger than are necessary to enforce the ordinance.

Plaintiff further claims that the frauds alleged are greatly exaggerated; that it appears from the report of the sealer of weights and measures that the conditions in relation to dealers in coal were good for the year 1931; and that the sealer of weights and measures reported for that year that he had a man reweighing coal wagons, and that conditions in this line were excellent.

It also appears from the affidavits submitted on the part of the defendants that the statements in relation to the peddlers are made largely on information and belief, and there is no evidence of specific cases of this kind.

In respect to the propriety of regulating the coal business, the decision of the common council must control. It may be reasonably claimed that the public is defrauded in connection with this business and that regulation is desirable. All presumptions are in favor of the validity of the ordinance in this respect.

Regulations respecting lawful trades or occupations are of frequent occurrence in the various cities of the country. To what business or occupation they may apply is a legislative question, not a question for the courts. Unless regulations are so utterly unreasonable and extravagant in their nature and purpose that the property and personal rights of citizens are unnecessarily and arbitrarily interfered with, they are not beyond the power of the State, and do not offend the Federal Constitution. (Gundling v. Chicago, 177 U. S. 183; 20 S. Ct. 633; 44 L. Ed. 725.)

The main objection to the ordinance is the license fee of $250 for the first year and $150 for succeeding years.

Is this license fee unreasonable, arbitrary and prohibitive?

A license fee may be a tax or an imposition in exercise of the police power. (Village of Ballston Spa v, Markham, 58 Hun, 238; City of Brooklyn v. Nodine, 26 id. 512.)

Where the fee is, in effect, an excise or occupational tax, there must be equality and uniformity within the same class. (Metropolis Theater Co. v. City of Chicago, 228 U. S. 61; 33 S. Ct. 441; 57 L. Ed. 730; Gundling v. Chicago, 177 U. S. 183; 20 S. Ct. 633; 44 L. Ed. 725.) And where the license fee is thus imposed for revenue pur[63]*63poses, the amount is usually a question for the Legislature and not for the courts. (Alaska Fish Salting & By-Products Co. v. Smith, 255 U. S. 44; 41 S. Ct. 219; 65 L. Ed. 489; St. Louis Poster Advertising Co. v. City of St. Louis, 249 U. S. 269; 39 S. Ct. 274; 63 L. Ed. 599; Garbutt v. State, 116 Miss. 424; 77 So. 189; Stull v. DeMattos, 23 Wash. 71; 62 P. 451.)

On the other hand, where the license fee is imposed in the exercise of the police power, it must be such a fee only as will legitimately assist in regulation of the business or occupation, and it should not exceed necessary or probable expense of issuing the license and of inspecting and regulating the business which it covers. (Ward v. Maryland, 12 Wall. 418; 20 L. Ed. 449; City of Jacksonville v. Ledwith, 26 Fla. 163; 7 So.. 885; City of Ottumwa v. Zekind, 95 Iowa, 622; 64 N. W. 646; State v. Angelo, 71 N. H. 224; 51 A. 905; Woodruff v. McGrath, 32 N. Y. 255; People v. Jarvis, 19 App. Div. 466.)

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146 Misc. 60, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smart-v-city-of-albany-nysupct-1932.