Pabst Brewing Company v. Crenshaw

• Decision Date: 17 April 1905
• Docket Number: No. 85,85
• Citation: 49 L.Ed. 925,198 U.S. 17,25 S.Ct. 552
• Parties: PABST BREWING COMPANY, Appt. , v. G. Y. CRENSHAW et al
• Court: U.S. Supreme Court

198 U.S. 17

25 S.Ct. 552

49 L.Ed. 925

PABST BREWING COMPANY, Appt.,

v G. Y. CRENSHAW et al.

No. 85.

Argued December 8, 1904.

Decided April 17, 1905.

Messrs. Clifford Histed, James H. Harkless, Charles S. Crysler, and Francis C. Downey for appellant.

[Argument of Counsel from pages 17-20 intentionally omitted] Messrs.Edward C. Crow and William M. Williams for appellees.

Mr. Justice White delivered the opinion of the court:

The Pabst Brewing Company, a Wisconsin corporation, filed its bill in the court below to enjoin the beer inspector of the state of Missouri and his assistant from collecting, or attempting to collect, an inspection charge, fee, license, or burden, which it was alleged the law of Missouri imposed upon beer or other malt liquors when shipped from other states into Missouri, after its delivery within that state to the consignee, and when held for sale for consumption in Missouri or for shipment to other states. The general ground upon which the law was assailed was that the exactions complained of were regulations of commerce repugnant to the Constitution of the United States. It was, in addition, specially averred that, so far as the law imposed a charge on beer shipped from Wisconsin into Missouri, and held there by the consignee for sale and shipment for consumption in other states, the Missouri law was repugnant to the commerce clause, because in this particular it discriminated in favor of beer manufactured in Missouri and held for sale or shipment for consumption in other states.

The bill was amended and demurred to. Whilst the court considered the law not to be in conflict with the commerce clause on the general grounds alleged, it nevertheless concluded, because of the averment concerning discrimination as to beer shipped into Missouri for reshipment to other states, that the demurrer could not be sustained. 120 Fed. 144. An answer was thereupon filed, as also a replication, and subsequently the cause was submitted upon the pleadings and an agreed statement of facts. The supreme court of Missouri having decided that the law in question did not provide for any charge or burden upon beer or other malt liquors shipped into Missouri and held there for reshipment to points outside of the state, the court below, adhering to its previous opinion as to the general averments of the bill, and applying the construction given by the supreme court of the state to the statute, held that it did not discriminate, and dismissed the suit.

The law of Missouri in question is entitled 'An Act Creating the Office of Inspector of Beer and Malt Liquors of the State, and Providing for the Inspection of Beer and Malt Liquors Manufactured and Sold in This State.' The provisions of the act essential to be considered may be summarized as follows:

It creates the office of beer inspector, to be appointed by the governor, who shall be an expert beer brewer, and who is required to furnish a bond, and is given power to appoint the necessary deputies to execute the provisions of the act. The act forbids every person or corporation engaged in brewing within the state from using any material or chemical in the manufacture of beer or other malt liquors other than pure hops or pure extract of hops, or barley, malt, or wholesome yeast or rice. It is provided that the inspector or his deputies shall keep a record of those engaged in the manufacture, brewing, and sale of malt liquors within the state, and of the quantity manufactured or sold, and shall make a full report to the governor concerning the same, and imposes upon the officials named the duty of inspecting all beer or other malt liquors manufactured or sold within the state, to see that they conform to the standard of purity which the law requires. The act further imposes an inspection fee, charge, or license, accompanied with provisions for a label or stamp to be affixed upon the packages containing the beer or other malt liquor so manufactured or offered for sale within the state.

Concerning beer or other malt liquors manufactured outside of the state of Missouri and shipped into that state for sale and consumption within the state, after delivery and receipt under the shipment, the act provides as follows:

'Sec. 5. Every person, persons, or corporation, who shall receive for sale, or offer for sale, any beer or other malt liquors other than those manufactured in this state, shall, upon receipt, of same, and before offering for sale, notify the inspector, who shall be furnished with a sworn affidavit, subscribed by an officer authorized to administer oaths, from the manufacturer thereof, or other reputable person having actual knowledge of the composition of said beer or other malt liquors, that no material other than pure hops, or the extracts of hops, or pure barley, malt, or wholesome yeast, or rice, was used in the manufacture of same; upon the receipt of said affidavit the inspector shall inspect and label the packages containing said beer or malt liquors, for which services he shall receive like fees as those imposed upon the manufacturers of beer and malt liquors in this state.'

In the printed and oral argument at bar all the contentions concerning discrimination are waived, and the sole ground relied upon is the assertion that the statute constitutes a regulation of commerce, and is, hence, repugnant to the commerce clause of the Constitution of the United States.

Brevity and clearness in the consideration of the propositions relied upon to sustain the contentions made will be subserved by fixing at the outset exactly what the statute does, and by stating the legal principles which are controlling.

The subject with which the statute deals is beer and other malt liquors. Plainly, it operates upon such liquors only when manufactured in the state, or, if shipped from other states, after their arrival in the state, and when they are held there for sale and consumption therein.

It is provided by the act of Congress, commonly styled the Wilson act (26 Stat. at L. 313, chap. 728, U. S. Comp. Stat. 1901, p. 3177), as follows:

'That all fermented, distilled, or other intoxicating liquors or liquids transported into any state or territory, or remaining therein, for use, consumption, sale, or storage therein, shall, upon arrival in such state or territory, be subject to the operation and effect of the laws of such state of territory enacted in the exercise of its police powers, to the same extent and in the same manner as though such liquids or liquors had been produced in such state or territory, and shall not be exempt therefrom by reason of being introduced therein in original packages or otherwise.'

The scope of this act and the power of Congress to adopt it was passed upon in Re Rahrer (Wilkerson v. Rahrer) 140 U. S. 545, 35 L. ed. 572, 11 Sup. Ct. Rep. 865. The scope of the act was thus stated (p. 560, L. ed. p. 576, Sup. Ct. Rep. p. 868):

'Congress has now spoken and declared that imported liquors or liquids shall, upon arrival in a state, fall within the category of domestic articles of a similar nature.'

It was decided that, although the act had the effect thus stated, it was not repugnant to the Constitution of the United States, the court saying (p. 562, L. ed. p. 576, Sup. Ct. Rep. p. 869):

'No reason is perceived why, if Congress chooses to provide that certain designated subjects of interstate commerce shall be governed by a rule which devests them of that character at an earlier period of time than would otherwise be the case, it is not within its competency to do so.'

In Rhodes v. Iowa, 170 U. S. 412, 42 L. ed. 1088, 18 Sup. Ct. Rep. 664, the purport of the act was again passed upon. Reiterating the ruling made in the Rahrer Case, it was decided that, whilst the Wilson act caused liquors shipped into Iowa from another state to be devested of their character as articles of interstate commerce after their delivery in Iowa to the person to whom consigned, nevertheless the act did not authorize the laws of Iowa to be applied to such merchandise whilst in transit from another state and before delivery in Iowa.

In Vance v. W. A. Vandercook Co. 170 U. S. 438, 42 L. ed. 1100, 18 Sup. Ct. Rep. 674, the operation of a liquor law of South Carolina was considered. By the act in question the state of South Carolina took exclusive charge of the sale of liquor within the state, appointed its agents to sell the same, and empowered them to purchase the liquor, which was to be brought into the state for sale. The fact was that by the act in question the state of South Carolina, instead of forbidding the traffie in liquor, authorized it, and engaged in the liquor business for its own account, using it as a source of revenue. The act, in addition, affixed prerequisite conditions to the shipment into South Carolina from other states of liquor to a consumer who had purchased it for his own use, and not for sale. Considering the Wilson act and the previous decisions applying it, it was decided that the South Carolina law, in so far as it took charge in behalf of the state of the sale of liquor within the state, and made such sale a source of revenue, was not an interference with interstate commerce. In so far, however, as the state law imposed burdens on the right to ship liquor from another state to a resident of South Carolina intended for his own use, and not for sale within the state, the law was held to be repugnant to the Constitution, because the Wilson act, whilst it delegated to the state plenary power to regulate the sale of liquors in South Carolina shipped into the state from other states, did not recognize the right of a state to prevent an individual from ordering liquors from outside of the state of his residence for his own consumption, and not for sale.

Quite recently, at this term, in American Exp. Co. v. Iowa, 196 U. S. 133, 25 Sup. Ct. Rep. 182, 49 L. ed. 424, and Adams Exp. Co. v. Iowa, 196 U. S. 147, 25 Sup. Ct. Rep. 185, 49...