Susquehanna Coal Company v. Mayor and Council of the City of South Amboy

• Decision Date: 26 May 1913
• Docket Number: No. 301,301
• Citation: 33 S.Ct. 712,228 U.S. 665,57 L.Ed. 1015
• Parties: SUSQUEHANNA COAL COMPANY, Appt., v. MAYOR AND COUNCIL OF THE CITY OF SOUTH AMBOY et al
• Court: U.S. Supreme Court

228 U.S. 665

33 S.Ct. 712

57 L.Ed. 1015

SUSQUEHANNA COAL COMPANY, Appt.,

v MAYOR AND COUNCIL OF THE CITY OF SOUTH AMBOY et al.

No. 301.

Argued May 6 and 7, 1913.

Decided May 26, 1913.

Messrs. Alan H. Strong and James B. Vredenburgh for appellant.

Mr. Frederic M. P. Pearse for appellees.

Mr. Justice McKenna delivered the opinion of the court:

Bill in equity to restrain the collection of taxes levied by the city of South Amboy upon coal belonging to appellant on the ground that the coal was in transit from points in the state of Pennsylvania, through the state of New Jersey, to destinations outside of the latter state; and being, as it is alleged, in interstate commerce, the taxes on it were illegally levied because in contravention of the commerce clause of the Constitution of the United States.

Appellant is a Pennsylvania corporation and a dealer in coal, buying three fifths of what is sold in the years 1906, 1907, and 1908, and producing two fifths itself. Appellant shipped its coal from its mines in Pennsylvania to New York and the states east thereof by the Pennsylvania Railroad, across New Jersey, to leave the latter state at Harsimus Cove, Greenville, or South Amboy piers, the termini of the road on New York harbor. In the year 1906 it shipped 1,582,000 tons of coal; in 1907 it shipped 2,010,200 tons, and in 1908 it shipped 2,050,500. Of these amounts, 3 1/2 per cent, 4 1/2 per cent, and 6 per cent, respectively, were unloaded at South Amboy. The balance of the amounts shipped passed through Harsimus Cove and Greenville piers. The cars, on arrival at the latter points, were floated across the harbor and transferred to railroads on the opposite side. The bills of lading for the coal thus shipped were made out to designated purchasers as consignees; the coal which arrived at South Amboy was consigned to appellant at such place, and was intended to be transferred to bottoms at tidewater, and shipped to states east of New Jersey. 'This coal,' we quote from the opinion of the district court, 'was forwarded from the mines on orders from the complainant's Philadelphia agents, who issued such orders upon requisitions made upon them from complainant's New York agents. Neither the agents at the mines nor at Philadelphia knew for which particular customers the coal thus forwarded to South Amboy was intended. Complainant had a number of regular customers east of New Jersey, to whom it promised to make deliveries on monthly contracts; the exact requirements of such customers, in tonnage and kind of coal, were known only to the New York agents. These agents from time to time totaled such requirements, plus other orders for coal, and issued their requisition based upon such totals, to the Philadelphia agents. Such requirements and the shipments made thereunder varied in tonnage and kind of coal. At South Amboy complainant had an agent who, upon the orders of New York agents, superintended the loading upon such bottoms of the kind and amount of coal required for designated customers. When so loaded, the master of the bottoms issued bills of lading in the name of the complainant as shipper, and particular persons as consignees. These bills of lading were sent to complainant's New York agents, whereupon the latter made out invoices to the consignees. Up to the time of loading the bottoms, the title of the coal was in complainant.

'If, upon arrival of the coal at South Amboy, bottoms were on hand to take the kind of coal arriving, such coal was transferred from the cars to the bottoms. If not, such coal was dumped into a coal depot or storage yard of the railroad company, located about 2,000 feet from the piers, equipped with derricks for the loading and unloading of coal, and where the different kinds of coal of the complainant were put into piles, which would be subsequently transferred into bottoms; not necessarily the first bottoms arriving, as the preference was given to coal subsequently arriving and still in cars. In the year 1906 the expense of dumping the coal from the cars, and its subsequent transfer into bottoms, was borne by the railroad company. Subsequently, such expense was borne by complainant.'

It appears from the testimony that the amount of coal in the depot or storage yard at South Amboy varied. 'It went,' it was testified, 'to 10,000 tons, but it ranges from 20,000 up to 150,000 tons.'

The conclusion of the district court was that, by the storage of coal, appellant 'obtained two beneficial results: First, cars arriving when no bottoms were on hand could be released and demurrage charges saved; second, when bottoms arrived and no cars were on hand containing the kinds of coal desired, such vessels could be loaded from the piles, resulting in a saving of time in the departure of such bottoms.' In other words, there was something more than the submission to delay in transportation and the acceptance of its consequences. The situation was made a facility of business,—a business conducted through agents and employees. And, it will be observed, there was valuable property kept in the state, represented by the coal, varying in quantity from 10,000 tons to 150,000 tons. There was something more, therefore, than an incidental interruption of the continuity of its journey through the state.

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