Hamilton v. Kentucky Distilleries & Warehouse Co.Hamilton v. Kentucky Distilleries & Warehouse Co.
delivered the opinion, of the court.
■ The armistice with Germany was signed November 11, 1918. Thereafter Congress passed and, on November 21, 1918, the President approved the War-Timé Prohibition Act (c. 212,40 Stat. 1045,1046), which provides as follows:
“That after June thirtieth, nineteen hundred and nineteen, until the conclusion of • the present war and thereafter until the termination of demobilization, the date of which shall be determined and proclaimed by the President of the United States, for the purpose of conserving the man power of the Nation, and to increase efficiency in the production of arms, munitions, ships, food, - and clothing for the Army and Navy, it shall be unlawful to sell for beverage purposes any distilled spirits, and during said time no distilled spirits held, in bond shall be removed therefrom for beverage purposes except for export. . . .”
On October 10, 1919, the Kentucky Distilleries and Warehouse Company, owner of distillery warehouses and ,of whisky therein, brought in the District Court of the United States for the Western District of Kentucky a suit against Hamilton, Collector of Internal Revenue for that District, alleging that the above act was void or had become inoperative and praying that he be enjoined from interfering, by réason of that act, with the usual process of
The essential facts in the two cases differ in this:' In the Kentucky case the whisky was stored in a distillezy warehouse; the plaintiff was the maker of the whisky'; had owned it prior to the passage of the act; and had, since June 30,. 1919, paid the revenue tax on part of it. In the New York case the liquors were in general and special bonded warehouses; the plaintiffs were jobbers; and it does not appear when they became the owners of the liquors. Both cases come hereljy^direct- appeal under § 238 of the Judicial Code, were. argued"on the same day, and may be disposed of together. Four contentions are made in support of the relief prayed for: (1) that ■ the act was void when enacted because it violated the Fifth Amendment; (2) that it became void before these suits were brought by reason of the passing of the war emergency; (3) that it was abrogated or repealed by the Eighteenth Amendment; (4) that by its own terms it expired before the commencement of these suits. These contentions will be considered in their order.
First:
Is the act void because it takes private property
There was no appropriation of the liquor for public purposes. The War-Time Prohibition Act fixed a period of seven months and nine days from its passage during which liquors could be disposed of free from any restriction imposed by the Federal Government. Thereafter, until the end of the war and the termination of demobilization, it permits an unrestricted sale for export' and, within the United States, sales for other than beverage purposes.The uncompensated restriction upon the disposition of liquors imposed by this act is of a nature far less severe than the restrictions upon the use of property acquired before the enactment of the prohibitory law which were held to be permissible in cases arising under the Fourteenth Amendment.
Mugler
v.
Kansas,
Second:
Did the act become void by the passing of the war -emergency before the commencement of these„suits? It is conceded that the mere cessation of hostilities under the armistice did not abridge or suspend the power of Congress to resort to prohibition of the liquor traffic
To establish that the emergency has passed, statements and acts of the'President and of other executive officers are adduced; some of them antedating the enactment of the statute here in question. There are statements of the President to the effect that the war has ended
1
and peace has come;
2
that certain war agencies and activities should be discontinued;
3
that our enemies are impotent , to renew hostilities
4
and that the objects of the act here in. question have been satisfied in the demobilization of the army and navy.
5
It is shown that many war-time activities have been - suspended; that vast quantities of war materials have been disposed of; that trade -with Germany has been resumed; and that the censorship of postal, telegraphic and wire communications has been removed.
6
But we have also the fact that since these statements were made and these acts
The present contention may be stated thus: That notwithstanding the act was a proper exercise of the war power of Congress at the date of its approval and contains its own period of limitation — “until the conclusion of the present war and thereafter until the termination of demob
No principle of our constitutional law is more firmly established than that this court may not, in passing upon the validity of a statute, enquire into the motives of Congress.
United States
v.
Des Moines Navigation Co.,
That a statute valid when enacted may cease to have validity owing to a .change of circumstances has been recognized, with respect to state laws, in several rate cases.
Minnesota Rate Cases,
Conceding, then, for the purposes of the present case, that the question of the continued validity of the war prohibition act under the changed circumstances depends upon whether it appears that there is no longer any necessity for the prohibition of the sale of distilled spirits for beverage purposes, it remains, to be said ^ that on obvious grounds every reasonable intendment must be made in favor of its continuing validity, the prescribed period of limitation not having1 arrived; that to Congress in the exercise of its powers, not least the war power upon which the very life of the nation depends, a wide latitude of discretion must be accorded;, and that it would require a clear case to justify a court in declaring that such an act, passed for such a purpose, had ceased to have force because the power of Congress no longer continued. In view of facts of public knowledge, some of which have been referred to, that the treaty of peace has not yet been concluded, that the railways are still under national control by virtue of the war powers, that other war activities have not been brought to a close, and that it can not even be said that the man power of the nation has been restored to a peace footing, we are unable to conclude that the act has ceased to be valid.
Third;
Was the act repealed by the adoption of the Eighteenth Amendment? By the express terms of the.
The Eighteenth Amendment with its implications, if any, is binding not only in times of peace, but in war. • If there be found by implication.a denial to Congress of the right to forbid before its effective date any prohibition of the liquor traffic, that denial must have been operative immediately upon the adoption of the Amendment, although at that time demobilization of the army and the navy was far from complete. If the Amendment effected such a denial of power then it would have done so equally had hostilities continued flagrant or been renewed. Furthermore, the Amendment is binding alike upon the United States and the individual States. If it guarantees a year of immunity from interference by the Federal . Government with the liquor traffic, even to the extent of abrogating restrictions existing at the time of its adoption, it is difficult to see why the guaranty does not extend also to immunity from interference by the individual States, with like results also as to. then existing state legislation. The contention is clearly unsound.
Fourth:
Did the prohibition imposed by the act expire by limitation before the commencement of these suits? The period therein prescribed is "until the conclusion of
In the'absence of specific provisions to the contrary the period of war has been held to extend to the ratification of the treaty of peace or the proclamation of peace..
Hijo
v.
United States,
It is insisted that he has done so. The contention does' violence to both the language-and the evident purpose of the provision. • The “daté of which shall be determined and proclaimed by the President” is a phrase' so definite as to leave no room for construction. This requirement cannot be satisfied by passing references in messages to Congress, nor by newspaper, interviews with high officers of the ’army or with officials of the War Department. When the President mentioned in' his veto message the “demobilization of the army and .navy” the words were doubtless used in a popular sense,
The'War-Time Prohibition Act being thus valid and still in force, the. decree in Number 589 is reversed and the ease is remanded to the District Court with directions, to dismiss the bill; and the decree in Number 602 is affirmed.
No. 589. Reversed.
No. 602. Affirmed.
Notes
War Acts authorizing the.seizure or requisition of property:
■ March 4, 1917, e. 180, 39 Stat. 1168, 1193, July 1, 1918, c. 113, 40 Stat. 634, 651, factories, ships, and war materials; June 15, 1917, c. 29, 40'Stat. 182, 183, April 22, 1918, c. 62, 40 Stat. 535, November 4, 1918, c. 201, 40 Stat. 1020, street railroads, equipment, etc., and the acquisition of title to lands, plants, etc.; August 10,1917, c. 53, 40 Stat. 276, 279 (Food Control Act), foods, fuels, factories, packing
. See also Act of June 3, 1916, c. 134 (39 Stat. 166, 213), for the mobilization of industries, which authorizes the seizure of munition plants and provides that the compensation therefor shall be “fair and just,” and the Act of March 4, 1917, c. 180, 39 Stat. 1168, 1169, authorizing the acquisition of aeroplane patents by condemnation, for which $1,000,000 was appropriated.
The amount of distilled spirits of all kinds in bonded warehouses June 30, 1919, was 72, 358, 151.1 gallons as compared with 282,036,460,2, June 30, 1914; 253,668,341.3 gallons, June 30, 1915; 232,402,878.3 gallons, June 30, 1916; 194,832,682.6 gallons, June 30, 1917; 158,959,264.5 gallons, June 30, 1918. Report of the Commissioner of Internal Revenue for 1919; p. 173. The following explanation is given by the Commissioner, p. 51, why more was not withdrawn: “The high rates of- tax' on spirits, fermented liquors and wines which were provided in the bill subsequently enacted into law as the Revenue Act of 1918, prompted many dealers to make heavy purchases of these commodities prior to the.passage of the Act and, as a consequence of this action on the part of the dealers as well as of the expansión of prohibition territory throughout the United States the witi ■ drawals from bonded warehouses materially declined after the passage of the Act.”
Address to Congress, Official U. S. Bulletin, Nov. 11,1918, p. 5.
Thanksgiving Proclamation, Official U. S. Bulletin, Nov. 18,1918, p. 1. .
Address to Congress, Dec. 2, 1918, Official U. S. Bulletin, Dec. 2, 1918, p. 6.
Armistice Commemoration .Proclamation, Nov. 11, 1919.
Veto Message, October 27, 1919, Congressional Record, Oct. 27,-1919, p. 8063.
U. S. Official Bulletin, Nov. 12, 1918, p. 3; Nov. 22, 1918, p. 1; Nov. 27; 1918, p. 7; Dec. 12, 1918, p. 4; Dec. 20, 1918, p. 4; Dec. 3Ó, 1918, p. 7; United States Bulletin, Feb. 27, 1919, p. 6; May;8, 1919; May 12,1919, p. 14; Oct. 20,1919, p. 17.
Congressional Record, Nov. 19,1919, p. 9321.
United States Bulletin, Nov. 10,1919, p. 9; U. S. Official Bulletin, Jan. 18, 1919, p. 1. ■
Congressional Record, Nov. 19,1919, p. 932J.
The provisions fixing the date of expiration of the-several war acts are as follows:
(Aircraft Act being c. XVI, of the Army Appropriation Act of July 9, 1918, e. 143, 40 Stat. 889.) “Within one year from the signing of a treaty of peace with the Imperial German Government.”
(Departmental Reorganization Act of May 20, 1918, c. 78, .40 Stat. 556.) “That this Act shall remain in force during the continuance of the present war and for six months after the termination of the war by the proclamation of the treaty of peace.”
(Emergency Shipping Fund Act of June 15,1917, c. 29,40 Stat. 182, as amended by the Act of April 22, 1918, c. 62, 40 Stat. 535, and by the Act of November 4, 1918, c. 201, 40 Stat. 1020.) “All authority .. , shall cease six months after a final treaty of peace is proclaimed between this Government and the German Empire.”
(Charter Rate and Requisition Act of July 18, 1918, c. 157,40 Stat. 913.) “All power and authority . . . shall cease upon the proclamation of the final treaty of peace between the United States and the Imperial German Government.”
(Railroad Control Act of March 21, 1918, c. 25, 40 Stat. 451, 458.) “. . . Federal control . . . shall continue for and during the period of the war and for a reasonable time thereafter, which shall not exceed one year and nine months next- following the date of the proclamation by the President of the exchange of ratifications of the treaty of peace.”
(Food Control Act of August 10, 1917, c. 53, 40 Stat. 276, 283.) “Sec. 24. That the provisions of this Act shall cease to be in effectwhen the existing state of war between the United States and Germany shall have terminated, and the fact and date of such termination shall be ascertained and proclaimed by the President.”
(Trading with the Enemy Act of Óct )ber 6, 1917, c. 106, 40 Stat. 411, 412.) “The words ‘end of the war’ as used herein, shall be deemed to mean'the date of proclamation of exchange of ratifications of the treaty of peace, unless the President shall, by proclamation, declare a' prior date, in which case the date so proclaimed shall be ‘deemed to be the ‘end of the war’ within the meaning of this Act.”
(Soldiers’ and Sailors’ Civil Relief Act of .March 8, 1918, c. 20, 40 Stat. .440, at 441 and 449.) “ (5) The term ‘termination of the war’ as used in this Act shall mean the termination of the present war by the treaty of peace as proclaimed by the President. .. • . . Sec. 603. That-this Act shall remain in force until the termination of the war, and for six pionths thereafter.” .
' (Saulsbury Resolution of May 31,1918, c. 90, 40 Stat. 593.) “That until a treaty.of peace shall have been definitely concluded between the United States and the Imperial German Government, unless in the meantime otherwise provided by Congress . . .”
(Wheat Price Guarantee Act of March 4,1919, c. 125, § 11, 40 Stat. 1348, 1353.)' ; “That the provisions of this Act shall cease to be in effect whenever the President shall find that the emergency growing oút of the war with Germany, has passed and that the further execution of the provisions of this Act is no longer necessary for its purposes, the date of which termination shall be ascertained and proclaimed by the President; but the date when this Act shall cease to be in effect shall, not be later than the first day of June, nineteen hundred and twenty.”