Lapas attēli
PDF
ePub

in the King Case made no provision as to the amount of compensation to be demanded for entrance to the premises.

The decision in the Munn Case entirely changed the common-law character of the warehouses or elevators, and transformed the business from a private to a public one, and this transformation was held to have taken place simply because of the extent of the user of the property and the convenience of situation. The change being effected, the right to demand the services of the plaintiffs in error was assumed without argument; and, such right existing, the right to limit the change was evolved therefrom. The fact that the owners of the property had received no license or privilege from the State, had been endowed with no legal monopoly, virtual or otherwise, were neither common carriers nor public wharfingers, and were simply using their private property in a business which, in its real nature, was as strictly private as that of the large houses of A. T. Stewart, Claflin & Co., and hundreds of other large firms in New York and elsewhere, had no effect with the court in determining this question of public use. The business was placed on the same foundation as a common carrier, and the right of the public to compel business relations was assumed. I am confident that the courts of this State have never gone to any such length in determining when property is devoted or dedicated to a public use.

What is alluded to in the books as a monopoly, or as a "virtual" monopoly, is, in either case, a right created by license from the crown or by virtue of an act of Parliament. See 4 Bl. Com. 159; 4 Steph. Com. 291. The important fact is that it emanates from the sovereign power either by license or by legislation, and in both cases, either as an exclusive or a virtual monopoly, it is a privilege or immunity granted to an individual or corporation, and, of course, upon such conditions as to compensation, etc., as the licensing power may choose to impose. Thus in the case in 12 East (supra) it was stated that the dock-owners would have had a virtual monopoly of the storage business if the choice of the public as to where to store its wines were so far restricted, by the government licensing only a few, that its freedom of choice practically did not exist; but that, if the license should so far become general that there was practically a fair freedom of choice, then there would be no monopoly, and the owners of the warehouses would be free to charge such rates as might be agreed upon. It was nowhere stated or implied that there could be an exclusive or a virtual monopoly grounded on the fact of convenience of situation, or the costliness of the erections, or a mere combination of owners to raise prices. Such combinations might be illegal, and they might subject the persons who entered into them to prosecution as violators of the law, but that would confer no right to regulate or limit the amount of compensation which a private individual might charge for the use of his property, where he had not devoted it to a public use, as I understand the meaning of that term, and where he had not received any privilege or immunity from the State upon the exercise of which the right of limitation might be imposed. The virtual monopoly, in the case in East, rested wholly upon the grant of the privilege of bonding given by the crown.

Finally, and much later than the Munn Case, the Supreme Court, in defining just what it did decide in that case, said (per Mr. Justice Miller) that the Munn❘ Case presented the question whether one engaged in a public business, in which all the public had a right to require his service, could be regulated by acts of the Legislature, in the exercise of this public function and public duty, so far as to limit the amount of charges that should be made for such services, and the court answered such question in the affirmative. See Railroad Co. v. Illinois, 118 U. S. 557, 569. The court seems

therefore to have assumed in the later case that the Chicago elevator owners were bound to place their elevators at the service of the public upon demand, and could not, so long as they remained in the business, refuse to do the business required of them, and that the Munn Case simply decided that principle. The elevators were made public elevators, not by the Constitution or laws of Illinois, but by the facts of that

case.

The Slaughter-House Cases, 16 Wall. 36, decided that the act of the Louisiana Legislature, although granting an exclusive right or privilege as to the slaughtering of cattle, and designating the place for it, was yet valid as a police regulation as to such business, and came under the description of a health regulation, and did not violate any provision of the Federal Constitution. But if the mere extent of the use of one's property by the public, in the particular business in which he is engaged, is to stamp that use as a public one, and if he is therefore to be held to have devoted his property to a public use, the power of the Legislature may be imposed upon a vast number of employments which have heretofore been regarded as wholly private, although at the same time very extensive. A man may set up scales for weighing merchandise by the wholesale, upon his own lands, and announce his readiness to weigh the merchandise of all comers upon such terms as they may agree as to compensation. As soon as his business reaches proportions large enough to enable the Legislature, in its discretion, to declare that he has devoted his property to a public use, that moment it is clothed with the power to limit him in his compensation for the use of his own property. It is in vain for him to say that he has asked and received nothing from the State by way of any special privilege or right, and that he has a right to charge what he will for the use of his own property, and the public has no right to demand his services. The answer would be:

You have devoted your property to a public use, because great numbers of the public desire to and do use your property for the purpose that you have offered it, and it is entirely immaterial that the public has no legal right to demand such use. As long as you are in the business you must submit to be regulated by the power of the State." If a man should erect on his own land a large steam-mill to grind corn, and, by reason of his superior facilities, large numbers of persons should resort to it for the purpose of having their corn ground, has he devoted his property to a public use because of the extent to which the public make use of his property for the purpose for which he erected or fitted it up? So long as no person has the right to make use of such property against the will of the owner, and so long as he neither exercises nor receives any special privilege from the State, can it be plausibly maintained in this State that it can impose upon him a limitation as to the amount which he is to receive for the use of his own property?

Nothing like this question was discussed or decided in Burlington Tp. v. Beasley, 94 U. S. 310, as the only controversy there existing was whether the particular purpose for which the bonds were in that case issued was covered by the Kansas enabling statute. The validity of that statute was not discussed or decided. But there are some States where a riparian owner has been given the right to build dams for the purpose of running mills by water power, and to overflow thereby the lands of others, upon payment of the damage done, and it has been held that the overflowing of the land was for a public purpose, i. e.. for a mill, and that it might be done under the authority of the Legislature, upon due compensation being made. Many of such statutes are set forth in the note to the very learned opinion of Mr. Justice Gray in Head v. Manufacturing Co., 113 U. S. 9, in which case it was held by the Federal court that such a statute violated no clause of the

Federal Constitution; but the act was upheld in that court, not as a proper exercise of the right of eminent domain, as taking property for a public use, and it was considered as one regulating the manner in which the rights of proprietors of lands adjacent to a stream may be asserted and enjoyed. This court has never gone to any such length however in determining what was a public use, within the taxing power or within that of eminent domain. In Hay v. Cohoes Co., 3 Barb. 42, 47, it was stated that no exercise of any such assumed right (that of eminent domain) had ever been attempted by our Legislature in favor of mills of any kind, and it was said that sites for steam-engines, hotels, churches and other public conveniences might as well be taken by its exercise.

In Weismer v. Village of Douglas, 64 N. Y. 91, which was substantially a mill case, where the defendant was authorized to issue its bonds to raise money to pay a subscription to a corporation which was expected to run a saw-mill on the Delaware river, this court held that the bonds were not issued for a public purpose, and the property of individuals could not be taxed to raise money to pay the principal or interest on such bonds. The purpose was declared not to be a public purpose, because (among other reasons) the public had no right to go to the mill of the corporation, when completed, and demand the right to have logs sawed into lumber there. As the corporation could refuse, at any and at all times, to saw the lumber for any particular person, or for all persons, the business of building or running the mill was not a public purpose or use; and, of course, property thus used was not devoted to a public use, and taxation for it was illegal. And In re Manufacturing Co., 96 N. Y. 42, the company was or ganized to (among other things) acquire certain swamp lands, and erect thereon basins, docks, wharves and piers, and warehouses for storing goods from vessels, etc., and it desired to obtain certain lands by the exercise of the power of eminent domain, upon the assertion that the use contemplated was a public one. This court held that as the public did not have the right to use the warehouses, or to direct, in any way, their management, and the property remained under private ownership, it was not a public use to which it was to be put, and hence no right existed to exercise the power asked for. The court said: "The fact that the use to which the property is intended to be put, or the structure intended to be built thereon, will tend, incidentally, to benefit the public by affording additional accommodations for business, commerce or manufactures, is not sufficient to bring the case within the operation of the right of eminent domain, so long as the structures are to remain under private ownership and control, and no right to their use or to direct their management is conferred upon the public." These two cases, in our own courts, illustrate the matter of a public use when that term has been employed with reference to the two great powers of taxation and eminent domain, and they show that, in circumstances such as therein stated, the fact that the public had no legal right to resort to the premises, and to demand the use of the owner's property on payment of reasonable compensation, was fatal to the claim that such use was of a public nature, or that the property was in such case devoted to a public use. There is no distinction of principle between the cases; and whenever it has been claimed heretofore that property has been devoted to a public use the term has expressed the fact, which existed, that the public had a right to resort to the premises, and to use the property, or to demand transportation, etc., upon reasonable compensation being paid or tendered. And the case of a steam-mill, which I have instanced, would not in this State be regarded as in the least degree a property which was devoted to any public use whatever, although its presence might greatly tend to benefit and accommodate the public.

The same principle has been decided in Vermont in Tyler v. Beacher, 44 Vt. 648, and the opinion of Mr. Justice Wheeler is referred to as a very able examination of the subject of what is a public use. If the power were as broad as is sometimes claimed, so that every sovereignty might regulate the conduct of its citizens toward each other in this way, when necessary for what the Legislature should determine to be the pub. lic good, and could regulate the manner in which each person should use his property, to the extent of making this limitation, then the whole power of legislation rests with the legislative department, unrestrained by any constitutional prohibition; and it is but necessary for the Legislature to decide that its proposed enactment is for the public good and general welfare, and such decision stands as a conclusive reason for and justification of its action. This cannot be and is not true. There are limitations to this doctrine other than the mere will of the Legislature, and its decision as to what constitutes the public good or the general welfare. These limitations are to be found in our fundamental law, and have been frequently discussed; and limitations have been placed upon the exercise of such power by the decisions of this court in carrying out the provisions of the Constitution. For example, see Wynehamer v. People, 13 N. Y. 378; In re Jacobs, 98 id. 98; People v. Marx, 99 id. 377; People v. Gillson, 109 id. 389.

The clause in our Constitution that no person shall be deprived of life, liberty or property without due process of law (Const., art. 1, § 6) is to have a large and liberal interpretation, as this court has said in so many words, and as is evidenced by the above-cited and other cases. The citizen is thereby protected against any unlawful invasion of such rights, or of any essential incident to the enjoyment thereof. Many instances of the benefits of this provision are cited in those cases, and in the dissenting opinion of Mr. Justice Field in the Munn Case, which, it seems to me, is a most masterly examination and clear statement of the principles which I believe this State has always stood by and protected through its courts. These cases hold that the liberty mentioned in the Bill of Rights is not the mere right to be free from personal restraint. It includes a right to labor and to receive the fruits of one's labor (which includes the price for the use of one's property) in all ways which are not harmful to the welfare, the health, the happiness of others. The whole reason for the existence of the police power rests in the theory that one shall so use bis own property as not to interfere with the proper use by others of their property, and so as not to interfere with the public health, morals or general welfare. The last words do not give power to the Legislature, arbitrarily, to determine the question what is for the general welfare; but such power is subject to the constitutional restrictions already adverted to, beyond or in violation of which the Legislature cannot go.

The case of Vanderbilt v. Adams, 7 Cow. 349, was decided by our Supreme Court in the early part of the century. The facts show a clear case for the exercise of the authority claimed under the act of the Legislature providing for the regulation of the harbor of New York. The plaintiff was the owner of a private wharf; such a one, I assume, as is spoken of in the cases of Langdon v. Mayor, 93 N. Y. 129, and Williams v. Mayor, 105 id. 419, as I know of no other kind of private wharf in New York. It was held that the wharf was subject to the harbor regulations contained in the legislative act, because such regulations were merely an exercise of the police power necessary to prevent confusion, and to promote the peace and good order necessary to be observed in a crowded harbor, such as New York was even then regarded. It was held that the city had never, by its graut of the land under

water, or of the right to build a wharf, parted with the right which it had received under its charter over the subject-matter of the wharves and their regulation. The difference of title of shore-owners on the New York and Brooklyn sides of the East river is discussed in Wetmore v. Lead Co., 37 Barb. 70, and referred to and recognized in the case of Wetmore v. Gas-Light Co., 42 N. Y. 393; and it was distinctly stated in lastcited case that the State did not, by its former acts, grant any right or privilege or franchise to the owners of the land under water, upon which could be based the right to compel the owner of the land to consent to its uses by the public. The License Cases, 5 How. 504, at 583, decided only that regulations for the sale of intoxicating liquors were valid, and did not infringe any provision of the Federal Constitution. Taney, C. J., in speaking of the police power of the State, simply said that it was of the same class as any other power inherent in every sovereignty. There was no pretense of a claim that it was a sovereign power uncontrolled and unlimited by the clauses of the Constitution providing for the liberty of the citizen. When the State legislates it does so by virtue of the power of sovereignty, which is, as the learned chief justice said, the power to govern men and things within the limits of its dominion.

It has been frequently said that the police power rests for its foundation upon the general duty of each citizen to so use his property as not to interfere with the fair and proper use by his neighbor of his property, and to protect and guard the public health and morals. The power to regulate or limit the price for the use of property situated like that in this case comes within no fair definition of such power, nor does it belong to the category of things that should be regulated in order that another may properly enjoy his own property, or that the public health or morals may be protected. An examination of the cases now before us, in view of these observations, will show, as I think, that these defendants have never devoted their property to a public use, so that the public had a right to require their service, and that they have received no immunity or privilege from the State upon which this claimed right of limitation cau be imposed as a condition to its exercise.

|

the elevator owners in Chicago whose rights were adjudicated upon in the Munn Case. The canal-boats loaded with grain, after their passage down the Hudson river, seek the owners of the storehouse in which to store the same until wanted, or the floating elevator is sought for and found, and employed to unload the cargo of the boat into the hold of the steamship. There are large numbers of warehouses and elevators which are in no way connected with each other. In neither case is there any thing like what can be called a "monopoly," virtual or otherwise; the utmost stretch of the imagination cannot so regard it. The warehouses are private property, and no one can enter upon them without the consent of their owners. Wetmore v. Lead Co., 37 Barb. 70; Wetmore v. Gas-Light Co., 42 N. Y. 384. Still more plainly is this the case with a floating elevator. It is not a common carrier or wharfinger or warehouseman. It has no monopoly, virtual or otherwise, as to facilities of place, convenience of situation, or license or privilege from the State. In the nature of the business of both the warehouseman and the elevator owner it is wholly private. Now, in what is the case made less strong when, instead of the scales or the mill, heretofore instanced, an elevator or warehouse is substituted? It is built by individuals or private partnerships, and occupied by them or leased to other private individuals or partnerships. It is built on lands owned by individuals, or it is in the substantial form of a boat, and floats on the public waters of the State, and its owners have received no kind of license, privilege or immunity from the State in any way special in its nature, or which is not common to all the people of the State. How, then, has the owner devoted it to a public use? It is claimed that he has done so because the elevator or warehouse is to be used to elevate or store a vast amount of grain which comes from the west seeking transportation through the Erie canal, and because it costs a large amount of money to buildsuch structures, and owing to the facility and cheapness with which the elevator does the work, as compared with the labor of individuals, those who own the grain, or those who are interested in its transportation, are compelled to use such elevator if they desire to successfully compete in the business of transportation and in the loading or unloading of such grain. Hence, it is said, a virtual monopoly exists, and the persons who own it are under the regulating power of the Legislature as to their compensation. But I deny that there is any virtual monopoly. There was such in the case in 12 East, supra, because there was no right in any other owners of warehouses to receive the wines on storage, and the right existed in the dockowners by virtue of a special graut from the sovereign. A monopoly is a business where the persons engaged in it have no exclusive privilege, and into which business the whole world is at liberty to enter, and upon entering which they will be possessed of precisely the same rights and privileges as the others engaged in it, is a contradiction in terms. Loosely speaking, a person or corporation is said to have a virtual monopoly of a business when, on account of its great extent and the facilities it has for transacting it, arising from its large proportions, the article it manufactures or sells substantially takes possession of the market. Such, for instance, is the case in the manufacture and sale of matches. One company does an enormous business, and has almost what is called a "monopoly " in some parts of the country, arising not from any special privi lege or right granted to or exercised by it, but because of its facilities, and it is therefore enabled to make the article cheaper and sell it cheaper than its competitors.

These defendants are the owners or lessees of certain elevators or warehouses, used in the harbor of New York for the purpose of transferring grain from one vessel to another, from canal-boat to steamship, or from boat to rail-car, or for the storing of grain. They are not a corporation, nor have they received any special privilege from the State in regard to their business, nor are they engaged in a business which is not absolutely free to any one who wishes to use his property in the same way. They have no special right to use the waters within the jurisdiction of the State in a manner not equally open to every citizen, not only of the State, but of the United States. The State furnishes them no special facilities for the carrying on of their business, and they are under no obligations to it for any protection to their business or property, other than such as is given by and is due from the State to all the inhabitants thereof, viz., the duty of protection to their persons and property while they are lawfully engaged in their occupations. They are under no legal duty to engage in such occupation for all who may come and ask them. They have the perfect right to refuse to elevate, by means of their elevators, a bushel of grain for A., and, at the same time, they have the right to use elevators to elevate the grain of B. They have the equal right to refuse to store the grain of any or of all persons. I fail entirely to see how such a busi-But would any one suggest that the State has thereness can be said to be one in which the public have an interest in the way of a right to limit, through legislation, the price for which such business shall be done.

The defendants are situated entirely different from

fore a right to limit the price which the company shall charge for matches? If it be a corporation, indeed, or if it has received any special privilege or right from the State, then conditions may be imposed upon it, al

though none can be simply because of the greatness of its sales, or the number of the public interested in procuring cheap matches. But when the right of regulation as to compensation is spoken of because the person has a virtual monopoly, the term has heretofore been used as indicative of some special privilege or franchise granted to the individual by the sovereign which results in such virtual monopoly, and the right of such regulation exists by reason of such grant. No monopoly of that kind exists in this case. If it be said that the effect is the same, the answer is that it is not the same. In one case the monopoly exists by reason of the action of the government, and no other citizen can come in and devote his capital and energy to such use. In the other the monopoly exists only as long as other citizens choose to keep out of the business, and just as soon as it is seen that the least degree over the ordinary profit can be realized by an investment in elevator property, just that moment capital will flow into that channel, and probably away from some industry where the average rate of profit has ceased to be made. Thus in one case the result cannot be avoided or in any way altered excepting by the action of the sovereign, while in the other case it may be altered by the action of the ordinary laws of trade. The effect, while it lasts, may possibly be the same in both cases, but in the one it is arbitrary and dependent upou the government, and in the other subject to alteration according to general commercial rules. But in this case there is no pretense of a monopoly grounded upon lack of ability in the public to compete. On the contrary, the complaint is that the competition has been so fierce, and the numbers of those engaged in the business so great, that they have combined to fix upon prices below which they would not work, and it is, in reality, the combination of which complaint is made. If the prices for doing the work are higher than is reasonable, owing to such combination, the combination itself may be illegal (see Hooker v. Vandewater, 4 Den. 349; Stanton v. Allen, 5 id. 435); and, as has been said, the persons engaged in it may render themselves amenable to the criminal laws of the State; but no power of the State to limit the price for which a person may sell his property, or the use of it, results from a violation of the law against conspiracies or combinations to raise illegally the prices of articles, or the charges for services which have a commercial value.

It is said however that the defendants have received some privileges or benefits from the State in their business of elevating or storing grain, because the State has built the Erie canal, and spent large sums of money for that purpose, and the business of elevating grain into and out of a canal-boat, or of storing it, is made much greater than would be possible but for the constant maintenance of the canal by the State; and if the State should cease to maintain the canal the business of transporting grain over it would be wholly destroyed, and therefore it must be conceded that the business of elevating grain receives support from the public, and it is only through such support that the business can exist. It is difficult, as it seems to me, to regard this argument seriously. The State, it is thus said, has built a canal, and there are men (not the defendants) who propose to avail themselves of its existence, and to transport merchandise in their boats over its waters. Before undertaking such transportation however they must load their boats or unload them after such transportation is finished, and in the process of loading or unloading their boats in the public waters of the State they hire the defendants to do the elevating of the cargo. If the canal had not been built, there would have been no boatmen with canal-boats asking for cargoes, and consequently the defendants would not have had the opportunity of loading their vessels; therefore the State has cou

|

ferred a privilege upon the defendants by using which they acquiesce in the right of the State to limit the amount of compensation they can lawfully demand for the use of their own property. The mere statement of the proposition, it seems to me, is its best refutation. To argue upon it would seem to admit that it is debatable. By reason of the action of the State in building the canal, more frequent opportunities have arisen from which the defendants have been enabled to engage in a certain kind of labor, and to invest their capital in certain kinds of property, but not a privilege, immunity or franchise of any description has the State granted to them, even by the loosest construction of language. The legislation in question is nothing else than an effort, not only to regulate the private business of private individuals, but to limit the amount for which they shall exact compensation for the use of their own property, in which the public has no interest whatever, in the legal meaning of that term. If it is legal in this case, it is legal in any. The Legislature can step in and limit the prices of every article of commerce, the product of the field, the mine or the manufactory. There is seemingly no length to which it may not go, and no home to which this power may not be applied in matters of the most individual and private nature, and all under the guise of legislation for the public good and the general welfare.

It is true that the question of the validity of this law is one of power, and not of propriety; and if the Legislature in any case may have, under any circumstances, the power to limit the compensation which a private individual may receive for the use of his own property, not devoted to a public use, and in regard to which he receives and exercises no special privilege or immunity from the State, then we are bound to suppose such circumstances to exist in the case before the court. We are of the opinion that the Legislature has no such power.

There is no foundation for the argument that the elevator owners have ja monopoly because they have their charges fixed by the Produce Exchange, which only recognizes as regular the warehouse receipts given by elevator owners or warehousemen who are members of that body. If that be the fact, it constitutes in no view of the subject a monopoly. What has already been said upon the subject applies in equal degree to such an argument; nor have the defendants thereby received any privilege or franchise from the State.

new,

The disposition of Legislatures to interfere in the ordinary concerns of the individual, as evidenced by the laws enacted by Parliaments and Legislatures from the earliest times, and the futility of such interference to accomplish the purposes intended, have been the subject of remark by some of the ablest of Englishspeaking observers. Buckle, in his History of Civilization in England, in speaking of the course of English legislation, says: "Every great reform which has beeu effected has consisted, not in doing something but in undoing something old. The most valuable additions made to legislation have been enactments destructive of preceding legislation, and the best laws which have been passed have been those by which some former laws have been repealed." And again: "We find laws to regulate wages; laws to regulate prices; laws to regulate profits; laws to regulate the interest of money; custom-house arrangements of the most vexatious kind, aided by a complicated scheme, which was well called the 'sliding-scale' — a scheme of such perverse ingenuity that the duties constantly varied on the same article, and no man could calculate beforehand what he would have to pay. A system was organized, and strictly enforced, of interference with markets, interference with manufacturers, interference with machinery, interference even with shops. In other words, the industrious classes

were robbed in order that industry might thrive." Vol. 1, pp. 199, 200, etc. The legislation under review is of the same general nature. To uphold legislation of this character is to provide the most frequent opportunity for arraying class against class; and in addition to the ordinary competition that exists throughout all industries, a new competition will be introduced, that of competition for the possession of the government, so that legislative aid may be given to the class in possession thereof in its contests with rival classes or interests in all sections and corners of the industrial world. We shall have a recurrence of legislation which, it has been supposed, had been outgrown not only as illegal, but as wholly useless for any good effect, and only powerful for evil. Contests of such a nature are productive only of harm. The only safety for all is to uphold, in their full vigor, the healthful restrictions of our Constitution, which provide for the liberty of the citizen, and erect a safeguard against legislative encroachments thereon, whether exerted to-day in favor of what is termed the "laboring interests," or to-morrow in favor of the capitalists. Both classes are under its protection, and neither can interfere with the liberty of the citizen, without a violation of the fundamental law. In my opinion, the court should not strain after holding such species of legislation constitutional. It is so plain an effort to interfere with what seems to me the most sacred rights of property and the individual liberty of contract that no special intendment in its favor should be indulged in. It will not, as seems to me plain, even achieve the purposes of its authors. I believe it vain to suppose that it can be other than of the most ephemeral nature, at its best, or that it will have any real virtue in altering the general laws of trade, while, on the other hand, it may ruin or very greatly impair the value of the property of wholly innocent persons. If the compensation limited by the act is not sufficient to permit the average rate of profit upon the capital invested, it will result either in its evasion, or else the work will not be done, and the capital employed will seek other channels where such average rate can be realized, or the property will become of little or no value. If the compensation be sufficient the same result aimed at would soon follow from the general laws of trade, from the law of supply and demand, and the general cost of labor and materials.

Every one having the same right to build an elevator or warehouse that these defendants have, and upon its completion to employ it in the same business, if the rate of profit is above the average, capital, if allowed absolute freedom and legal protection, will flow into the business until there is enough invested to do all or more than all the work offered, and then, by the competition of capital, the rate of compensation would come down to the average. Such, at least, would be the tendency, and it could only be averted by combination among the owners of the property, which could not be long sustained in the face of perfect freedom to all to invest in such undertakings. That they are expensive, and require the outlay of a large amount of money to build and maintain them, and that the warehouses now existing may have an advantage in location, does not, as has been shown, make them a monopoly, but simply tends to make the inevitable result a trifle more slow in its approach than in other cases requiring a smaller outlay. If it be said that there is already a superabundance of elevators, more than can be or are used, and that some of them lie idle while others do the work, and they all share in the profit, if the profit exceed what the owners of the grain or those engaged in its transportation can afford to pay, the result will then be that the persons so engaged will cease from that kind of work, or else the owners of the elevators will reduce their charges. This reduction of charges will most surely take place before the owners

of the elevators would allow the business to pass out
of existence, provided the compensation after such re-
duction would enable them to realize the average rate
of profit for their capital; while, if it would not, it
would be conclusive proof that the business of trans-
portation of grain or other commodities, where the
boats were to be loaded or unloaded by elevators,
could no longer be conducted with profit to all parties,
and some new way would have to be discovered and
put in practice; for capital will not seek investment
or employment where the average rate of profit cannot
be commanded, and men will not continue to trans-
port grain or any other commodity at a loss, or upon
such terms that they cannot earu a livelihood. If this
is the case in the transportation of grain by the canal,
owing to the competition of railroads and their ability
to transport it cheaply and rapidly, then that fact
must be faced. Such a business cannot be maintained
for any length of time, by legislation, at the expense
either of capital or of the transporter. Each must
earn the average profit in the same general line of
business, or the business must, from economical rea-
sons, cease. The legislation under consideration is
not only vicious in its nature, communistic in its
tendency, and in my belief, wholly inefficient to per-
manently obtain the result aimed at, but for the rea-
sons already given, it is an illegal effort to interfere
with the lawful privilege of the individual to seek and
obtain such compensation as he can for the use of his
own property, where he neither asks nor receives from
the sovereign power any special right or immuuity not
given to and possessed by every other citizen, and
where he has not devoted his property to any public
use, within the meaning of the law. The orders of the
General and Special Terms of the Supreme Court
should therefore be reversed, and the relators dis-
charged.

GRAY, J., concurs.

SALE-TITLE-LIQUORS SENT “ C. O. D.”
PENNSYLVANIA SUPREME COURT, NOV. 4, 1889.
FLEMING V. COMMONWEALTH.

A licensed dealer who receives at his place of business an
order for liquor from an adjoining county in which he
has no license, and fills it by delivering the liquor to a
common carrier designated by the purchaser, does not
violate the license law, as the sale is made at the place
where the goods were separated from the general stock
and delivered to the carrier.

ERR

RROR to the Court of Quarter Sessions, Mercer
county.

The plaintiff in error, Joseph Fleming, being a
wholesale liquor dealer, licensed and carrying on busi-
ness in Allegheny county, sold and sent from his place
of business, C. O. D., to Mercer county, where he had
no license, liquors ordered by persons in the latter
county. For this he was, at the Court of Quarter Ses-
sions of Mercer county, indicted, tried, convicted, and
sentenced for selling liquor therein without a license.
He now brings error.

George Shiras, Jr., and William S. Pier, for plaintiff in error.

G. W. McBride, J. A. Stranahan and S. H. Miller, for Commonwealth.

GREEN, J. In the case of Garbracht v. Com., 96 Penn. St. 449, which was an indictment for selling liquor without license, we held that "the place of sale is the point at which goods ordered or purchased are set apart and delivered to the purchaser, or to a common carrier who, for the purpose of delivery, represents him." In that case the order for the liquor was solicited and obtained by the defendant in the county of

[ocr errors]
« iepriekšējāTurpināt »