Tyson & Brother v. Banton

273 U.S. 418, 47 S. Ct. 426, 71 L. Ed. 718, 1927 U.S. LEXIS 707
Supreme Court of the United States·Decided March 7, 1927·No. 261·Published·Cited by 324 cases

Opinions

Mr. Justice Sutherland

delivered the opinion of the Court.

Appellant is engaged in the business of reselling tickets of admission to theatres and other places of entertainment in the City of New York. It employs a large number of salesmen, messenger boys and others. Its expenses are very large, and its sales average approximately 300,000 tickets per annum. These tickets are obtained either from the box office of the theatre or from other brokers and distributors. It is duly licensed under § 168, c. 590, New-York Laws, 1922, and has given a bond under § 169 of that chapter in the penal sum of $1,000 with sureties, conditioned, among other things, that it will not be guilty of any fraud or extortion. See Weller v. New York, 268 U. S. 319, 322.

[427] Section. 167 of chapter 690 declares that the price of or charge for admission to theatres, etc., is a matter affected with a public interest and subject to state supervision in order to safeguard the public against fraud, extortion, exorbitant rates and similar abuses. Section 172 forbids the. resale of any ticket or other evidence of the right of entry to any theatre, etc., “ at a price in excess of fifty cents in advance of the price printed on the face of such ticket or other evidence of the right of entry,” such printing being required by that section. Both sections are reproduced in the margin.* .

This suit was brought to enjoin respondents from proceeding either at law or in equity to enforce the last named section, and from, revoking plaintiff’s license, enforcing by suit or otherwise the penalty of the bond or prosecuting criminally appellant or any of its officers or agents fop reselling or attempting to resell any ticket or other evidence of the right of entry to any theatre, etc., at a price in excess of fifty cents in advance of the printed' [428] price. The bill alleges threats on the part of appellees to enforce the statute against appellant, to forfeit its license, enforce the penalty of its bond and institute criminal prosecutions against appellant, its officers and agents. It is further alleged that the terms of the statute are so drastic and the penalties for its violation so great [imprisonment for one year or a fine of $250 or both] that appellant may not resell any ticket pr-evidence of the right of entry at a price beyond that fixed by the statute even for the purpose of testing the validity of the law; and that appellant will be compelled to submit to the statute whether valid or invalid unless its suit be entertained, and thereby will be deprived of its property and liberty without due process of law and denied the equal protection of the law, in contravention of the Fourteenth Amendment to the federal Constitution.. Following the rule frequently announced by this court, that “ equitable jurisdiction exists to restrain criminal prosecutions under unconstitutional enactments, when the prevention of such prosecutions is essential to the safeguarding of rights of property,” we sustain the jurisdiction of the district court. Packard v. Banton, 264 U. S. 140, 143, and' cases there cited.

The case was heard below by a statutory court of three judges and a decree rendered denying appellant’s prayer for a temporary injunction and holding the statute assailed to be valid and constitutional. The provision of. the statute in question also has been upheld in a judgment of the New York state court of appeals, People v. Weller, 237 N. Y. 316, brought here on. writ of error. That case, ■however, directly involved only § 168, requiring a license, and although it was insisted that § Í72 restricting prices should also be considered, upon the ground that the two provisions were inseparable, this court held otherwise, sustained the validity of the license section and declined to [429] pass upon the-other one. Weller v. New York, 268 U. S. 319, 325.

Strictly, the question for determination relates only to the maximum price for which an entrance ticket to a theatre, etc., may be resold. But the answer necessarily must be to a question of greater breadth. The statutory declaration (§ 167) is that the price of. or charge for admission to a theatre,-place of amusement or entertainment or other place where public exhibitions, games, contests'or performances are held, is a matter affected with a public interest. To affirm the validity of § 172 is to affirm this declaration completely, since appellant’s business embraces the resale of entrance tickets to all forms of entertainment therein enumerated. And since the ticket broker is a mere appendage of the theatre, etc.', and the price of or charge for admission is the. essential element in the statutory declaration, it results that the real inquiry is whether every public exhibition, game, contest or performance, to which an admission charge is made, is clothed with a public interest, so as to authorize a law-making body to fix the maximum amount of the charge, which its natrons may be required to pay.

In the endeavor to reach a correct conclusion in respect of this inquiry, it will be helpful, by way of preface, to state certain pertinent considerations. The first of these is that the right of the owner to fix; a price at which his property shall be sold or used is an inherent attribute of the property itself, Case of the State Freight Tax, 15 Wall. 232, 278, and, as such, within the protection of the due process of law clauses of the Fifth and Fourteenth ■Amendments. See City of Carrollton v. Bazzette, 159 Ill. 284, 294. The power to regulate property, services or business can be invoked only under special circumstances; and it does not follow that because the power may exist to regulate in some particulars it exists to regulate in others or in all.

[430] The authority, to regulate the conduct of a business or to require a license, comes from a branch of the police power which may be quite distinct from the power to fix prices. The latter, ordinarily, does not exist in respect of merely private property or business, Chesapeake & Potomac Tel. Co. v. Manning, 186 U. S. 238, 246, but exists only where the business or the property involved has become “ affected with a public interest.” This phrase, first used by Lord Hale 200 years ago, Munn v. Illinois, 94 U. S. 113, 126, it is true, furnishes at best an indefinite standard, and attempts to define it have resulted, generally, in producing little more than paraphrases, which themselves require elucidation. Certain properties and kinds of business it obviously includes, like common carriers, .telegraph and telephone companies, ferries, wharfage, etc. Beyond these, its application not only has not been uniform, but many of the decisions disclose the members of the same court in radical disagreement. ■ Its full meaning, like that of many other generalizations, cannot be exactly defined;— it can only be approximated.

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Tyson & Brother v. Banton, 273 U.S. 418, 47 S. Ct. 426, 71 L. Ed. 718, 1927 U.S. LEXIS 707 (1927).

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