197 Mich. 283 | Mich. | 1917
While plying his trade as a peripatetic vendor of aluminum cooking utensils, from house to house in the city of Pontiac, Mich., defendant was apprehended and subsequently prosecuted for peddling within the city limits without a license in violation of a municipal ordinance which established a schedule of licenses imposed upon certain kinds of business. By it a license fee of $5 per day was required for peddling goods, wares, and merchandise upon the streets “or soliciting from house to house either for immediate or future delivery.” Violation of the ordinance was made punishable by fine or imprisonment. It is undisputed that on the date charged defendant was offering his wares from house to house in the city of Pontiac, displaying samples and soliciting orders for future delivery without having obtained a license in compliance with the ordinance. Trial in justice's court and re-‘ trial on appeal in the circuit court resulted in convictions, and the caserías been removed to this court for review on exceptions before sentence.
The contract under which he operated is a somewhat lengthy agreement for selling goods on commission, evidently prepared with care, stated by the Aluminum Company’s sales manager to be the regular form of .salesman’s contract made with each man representing it, which, amongst its numerous provisions, required defendant, who is designated its “salesman,” to deposit with the company $5 for a sample outfit, and diligently proceed to solicit orders for its aluminum utensils in territory assigned to him, “to keep faithfully and accurately a complete record of all receipts and expenditures in a book to be supplied by the company, and known as a ‘salesman’s account and expense book,’ ” to make two reports each week of the amount of each day’s orders and “be personally responsible for the payment for all goods included in requisitions sent to the company for goods to fill orders solicited for the company by him,” giving satisfactory security therefor, his commission to be on different specified goods from 33% to 40 per cent, of the company’s current retail prices, the net amount to be remitted promptly after deducting such commissions; failure to make sales at list prices averaging a specified amount per week is made ground for forfeiting his contract.
_ “We have repeatedly held that no State has the right to lay a tax on interstate commerce in any form, whether by way of duties laid on the transportation of the subjects of that commerce, or on the receipts derived from that transportation, or on the occupation or business of carrying it on, for the reason that such taxation is a burden on that commerce, and amounts to a regulation of it, which belongs solely to congress. Leloup v. Port of Mobile, 127 U. S. 640, 648 (8 Sup. Ct. 1380), and cases cited.”
Along these lines it is held that any tax upon the seller of goods, the sale of which requires their transportation from one State to another for delivery, is a discriminating tax upon the goods themselves, the imposition of which by a State or municipality is an illegal interference. with interstate commerce. This rule has. been applied to sewing machine and book agents, vendors of patent medicines, knives, brooms, pictures and picture frames, stoves, and other articles of traffic sold by canvassing from house to house with samples, where orders are taken for future delivery only, and the articles so sold are shipped from’ other States to fill such orders, on the theory that the goods so ordered and shipped are directly appropriated to
“Various decisions are to be found by courts of different States which purport to sustain a tax imposed upon canvassers or drummers selling goods to be afterwards brought within the State, where the goods, have been shipped in bulk to the agent or drummer or to a distributing agent, and have been by him delivered to the purchaser, instead of being shipped directly to the purchaser from without the State; but any supposed ground of distinction, based upon the fact that the goods, are shipped to the salesman or distributing agent in bulk and by him assorted and delivered to the purchasers, has been rejected by the Supreme Court of the United States, which has declared that the grounds, of distinction are not sufficient to remove the transactions from the domain of interstate commerce. Where the question of the power of the State to levy a privilege or occupation tax arises in a controversy with a drummer or canvasser, representing a non-resident, the fact that no discrimination is made between domestic and foreign drummers, and that all are taxed alike, is not material. Interstate commerce, as a business or occupation, cannot be taxed at all, even though the same amount of tax should be laid on domestic commerce, or that which is carried on solely within the State.”
The abundant cases there cited cover this case in all its aspects. Neither are we able to distinguish it in principle from Stewart v. Michigan, 232 U. S. 665 (34 Sup. Ct. 476), which in its controlling features was held, upon the Federal question involved, to have been
Reversed.