United States v. Austin Nicholls Company

• Decision Date: 02 June 1902
• Docket Number: No. 249,249
• Parties: UNITED STATES, Appt. , v. AUSTIN NICHOLLS & COMPANY
• Court: U.S. Supreme Court

186 U.S. 298

22 S.Ct. 918

46 L.Ed. 1173

UNITED STATES, Appt.,

v AUSTIN NICHOLLS & COMPANY.

No. 249.

Submitted May 2, 1902.

Decided June 2, 1902.

Assistant Attorney General Hoyt for appellant.

Mr. Albert Comstock for appellees.

Statement by Mr. Justice Brown:

This case came before the court of appeals upon appeal from a decision of the circuit court for the southern district of New York, reversing a decision of the board of general appraisers, which affirmed the action of the collector of the port of New York regarding the assessment of duty upon certain imported merchandise. The circuit court of appeals, being in doubt with regard to a certain question of law arising therein, desired the instruction of the supreme court for its proper decision.

The importation was made under the tariff act of 1894, and consisted of glass bottles, holding not more than one pint, and filled with goods dutiable at ad valorem rates. Upon these facts the question of law concerning which the instruction of this court was desired was this:

'Should the value of the bottles filled with ad valorem goods be added to the dutiable value of their contents, under § 19 of the customs administrative act of 1890, to make up the dutiable value of the imported merchandise?'

Mr. Justice Brown delivered the opinion of the court:

This case involves the dutiable classification of certain glass bottles either under the customs administrative act of 1890 or the tariff act of 1894. The statement of facts shows that the bottles in question held not more than one pint, and were imported filled with merchandise, which was liable to ad valorem duties, and that they were assessed for duty at the respective ad valorem rates applicable to their contents as a part of their value. The protest (referred to by counsel, though no part of the record) claimed that the articles were free from duty, or, failing that, were dutiable at 40 per cent ad valorem under &Par88, 89, or 90 of the tariff act of 1894.

Section 19 of the customs administrative act (26 Stat. at L. 131, 139, chap. 407) provides that 'whenever imported merchandise is subject to an ad valorem rate of duty . . . the duty shall be assessed upon the actual market value or wholesale price of such merchandise, . . . including the value of all cartons, cases, crates, boxes, sacks, and coverings of any kind, and all other costs, charges, and expenses,' etc.

At the time this act was passed the following provisions of the tariff act of 1883 were in force (22 Stat. at L. 488, 495, chap. 121):

'Green and colored glass bottles . . . not specially enumerated or provided for in this act, one cent per pound; if filled, and not otherwise in this act provided for, said articles shall pay thirty per centum ad valorem in addition to the duty on the contents.'

By the same act 'flint and lime glass bottles and vials, . . . not specially enumerated or provided for in this act,' were taxed at 40 per centum ad valorem. 'If filled, and not otherwise in this act provided for, . . . 40 per centum ad valorem in addition to the duty on the contents.'

Though the tariff act of 1883 is not directly in issue in this case, it is pertinent to inquire whether the sections above cited respecting duties upon glass bottles were repealed by § 19 of the customs administrative act. We are of opinion that they were not. The customs administrative act was not a tariff act, but, as its title indicates, was intended 'to simplify the laws in connection with the collection of the revenues,' and to provide certain rules and regulations with respect to the assessment and collection of duties, and the remedies of importers, and not to interfere with any duties theretofore specifically imposed or thereafter to be imposed, upon merchandise imported. Section 19 was intended to provide a general method for the assessment of ad valorem duties, and to require the value of all cartons, cases, crates, boxes, sacks, and coverings of any kind to be included in such valuation. We think the rule ejusdem generis applies to the words 'coverings of any kind,' and that glass bottles, which are never in ordinary parlance spoken of as coverings for the liquor contained in them, is such a clear departure from the preceding words as to exempt them from the operation of the section, provided, at least, they are taxed under a different designation. It is very singular that if Congress intended to include under the words 'coverings of any kind' vessels used for containing liquors, it should not have made use of the words casks, barrels, hogsheads, bottles, demijohns, carboys,' or words of similar signification. The inference is irresistible that by the word 'coverings' it only intended to include those previously enumerated and others of similar character used for the carriage of solids, and not of liquids. Webster defines a covering as 'anything which covers or conceals, as a roof, a screen, a wrapper, clothing,' etc.; but to speak of a liquid as being covered by the bottle which contains it, is such an extraordinary use of the English language that nothing but the most explicit words of a statute could justify that construction.

So, too, by cartons, cases, crates, boxes, and sacks, we understand those encasements which are not usually of permanent value, and such as are ordinarily used for the convenient transportation of their contents. Indeed, it is quite possible that they were made taxable in a general way by the customs administrative act, in order that, if they were so made as to be of further use after their contents were removed, they might not escape taxation. The ordinary cartons, cases, crates, boxes, and sacks are of no value after their contents are removed, but in order that they should not escape taxation altogether, if they were of permanent value, they were...