148 Iowa 173 | Iowa | 1910
The case was tried on an agreed statement of facts and the only questions argued by counsel are whether or not, on the agreed facts, defendant was engaged in interstate commerce. The Attorney-General doncedes that if he was so engaged the judgment is correct, and should be’ sustained. In view of this concession we are relieved of the necessity of determining whether or not the state, in the exercise of its police power, may not prohibit the sale of misbranded goods, although they may be the subject of interstate commerce and be sold in unbroken packages. The concession is bottomed in ■ part upon the fact that Congress has acted upon the same subject and attempted to control this matter in so far as it relates to interstate' shipments. See chapter 3915, Act June 30, 1906 (59th Cong.) 34 Stat. 7681 (U. S. Comp. St. Supp. 1909, p. 1187).
The latter act, so far as material, reads as follows:
Sec. 2. . . . Any person . . . who shall receive in any state or territory or District of Columbia, from any state or territory or the District of Columbia or foreign country and having so received shall deliver in original unbroken packages for pay or otherwise, or offer to deliver to any person any such article so adulterated or
Sec. 3. That the Secretary of the Treasury, the Secretary of Agriculture, and the Secretary of Commerce and Labor shall make uniform rules and regulations for carrying out the provisions of this act, including the collection and examination of specimens of foods an'd drugs . . . which shall be offered for sale in unbroken packages in any state other than that in which they shall have been respectively manufactured or produced. . .
Sec. 10. That any article of food, drug or liquor that is adulterated or misbranded within the meaning of this act, and is being transported from one state, territory, district or insular possession to another, for sale, or'having been transported, remains unloaded, unsold, or in original unbroken packages . . . shall be liable to be proceeded against. . . .
Counsel for the state contend that the trial court was in error in holding that the goods which defendant sold were in original packages, and, further, that under the agreed facts the articles which defendant had, became a part of the general mass of property within the state and were subject to its policy regulations.
Erom the agreed facts we extract the following as bearing upon the issues of law presented:
On or about the 17th day of December, 1908, defendant had in his possession in Iowa City, Johnson county, Iowa, for the purpose of delivering in said county a certain food product known as wheat flakes, the package or carton of -which bore the printed statement marked 16 ounces, when in fact said package contained a less net weight than 16 ounces, the net weight of one of said packages being 12% ounces; said defendant, J. B. Eckenrode, was then and there in the employment of the Citizens’ Wholesale Supply Company, a corporation organized under the laws of Ohio, with its principal place of business at Columbus, in said state, under the terms ¿f a printed contract, a copy of which is hereto attached marked, Exhibit A. In pursuance of said employment the said de
The Citizens’ Wholesale Supply Company, Columbus, Ohio — Gentlemen: Please ship from your W. Ho. at Columbus, 0-, and deliver to me at the point indicated on the back of this order, the following bill of goods ordered from your salesman:
Packed only in AMT. QUANTITY Bulk goods packed AMT. QUANTITY L Regular sizes
R 5, 10, 15, 20, 25 lb. sizes.
In taking said orders each customer gave a separate order and each order contained a description of the particular goods ordered by said customer; said customers did not sign said orders, but the defendant himself signed the name of said customers to the same; each order bore a serial number for the purpose of identification and the purchase price of each item in each order was set opposite the item ordered; each order upon the reverse thereof contained its serial number, the date when taken, the amount of the order and name and address of the purchaser,
In the opening of said large boxes in said wareroom in Iowa City, the contents were taken out of the boxes and and were set about the room, as suited the convenience of defendant in making said delivery.
Upon the delivery of the goods ordered to the respec
The Citizens’ Wholesale Supply Company did not manufacture or pack the wheat flakes in question, but the same were manufactured and packed by the Lake Odessa Cereal Company, of Lake Odessa, Mich., and delivered by Eckenrode in the identical packages in which they were packed by said company. The said wheat flakes were purchased by the Citizens’ Wholesale Supply Company from the said Lake Odessa Cereal Company under the written guaranty of said Lake Odessa Cereal Company that the wheat flakes and the packages containing them complied with the act of Congress of June 30, 1906, regulating interstate traffic in foods and drugs.
All goods, delivery of which was not accepted by the customers, were returned by the defendant to the Citizens’ Wholesale Supply Company, at Columbus, Ohio.
The money collected by the defendant upon the delivery of said goods, less the expense of the delivery of the goods, and his commission for soliciting said orders in making said delivery in accordance with his contract of employment, was sent to the Citizenis’ Wholesale Supply Company at Columbus, Ohio and said defendant was under bond to the Citizens’ Wholesale Supply Company to account for the moneys collected.
No delivery of goods was made by the defendant in Iowa City, Iowa, except as above stated and he had no goods in his possession for delivery, except under the circumstances above set out.
On or about the 17th day of December, 1908, while the defendant was in the act of making the delivery as above set forth, the packages of wheat flakes in question were delivered to M: E. Elynn, state food inspector, upon his request, and at the time said packages were delivered there were numerous packages of groceries and articles of food in packages strewn about the room from which said goods were delivered and where said goods were stored, but that all of said packages of groceries and other food products were shipped to and received by the defendant under the circumstances hereinbefore detailed and the same at the time of the making of the delivery were not in the
We here copy such parts of Exhibit A, being the con- ■ tract between the Supply Company and the defendant, as are deemed material:
Regular Salesman’s Contract.
This agreement entered into by and between the Citizens’ Wholesale Supply Company, of Columbus, Ohio, as party of the first part, and J. B. Eckenrode, of Gettysburg, state of Pennsylvania, as party of the second part, witnesseth:
The said first party hereby agrees to employ the said second party as a traveling salesman to sell the goods and merchandise of the said first party for a period of one year from date of this agreement, and agrees to pay said party for his services as follows: Commissions on different classes of goods ranging from 5 percent to 50 percent, as per the regular terms of said first party, applying to classes L and R.
The said second party agrees to pay his board, all traveling expenses, and other expenses necessary to transact the business of the said, first party, out of said commissions, and authorize any collector or acting collector in the service of the said first party to apply to the payment of said expenses, any part of said commissions before any part of said commissions shall be paid to the said second party.
The said first party agrees to make weekly cash advances to the second party, in accordance with the terms of General Circular No. 214, subject, ‘Advance on Orders,’ issued by the said first party.
The said first party agrees to furnish a sample case and all necessary samples of said merchandise to be sold by the said second party, and all stationery for his use in said business, free of charge, and the said second party on his part agrees to devote his entire time and attention to the exclusion of all other business, to furthering the interests and maintaining and increasing the trade of the
The said second party agrees in case of loss of said sample case, samples and stationery, to pay to the said first party the value thereof in a sum not to exceed twelve dollars ($12.00).
The said second party further agrees to deposit with the said first party the sum of one dollar as security, for the regular price book of said first party, which sum will be returned on surrendering said price book and samples in reasonably good condition.
The said first party herein reserves the right to terminate this contract at any time on the failure of the said second party to comply with the conditions and requirements of this contract, .or for ‘any other cause deemed sufficient by said first party.
There is considerable confusion in the cases regarding what constitutes an original package, due largely to the manner in which the question arose and somewhat to the nature of the power which the state was attempting to exercise. In previous cases we have, for the purpose of arriving at a correct decision of the particular question at issue, defined an original package. See McGregor v. Cone, 104 Iowa, 465, and cases cited. In that case it is said:
The question then arises, what is an ‘original package’ ? The definition commonly accepted and believed by us to be correct, is that ‘it is a bundle put up for transportation or commercial handling, and usually consists of a number of things bound together, convenient for handling and conveyance.’ See State v. Board of Assessors, 46 La. Ann. 146 (15 South. 10, 49 Am. St. Rep. 318); Keith v. State, 91 Ala. 2 (8 South. 353, 10 L. R. A. 430); U. S. v. One Hundred and Thirty-Two Packages, 22 C. C. A. 228 (76 Fed. 364). In the case of State v. Winters, 44 Kan. 723 (25 Pac.
In that case, however, the appellant was a resident of the state engaged in the business of selling cigarettes at retail. He purchased and imported the goods himself and resold them as his own. That these circumstances were regarded as important, if not' controlling is manifest from this further excerpt from the opinion:
Here the appellant is a resident of the state, engaged in the business of selling cigarettes at retail, and as such is amenable to all its laws which do not deprive him of some constitutional- right. When he received the package which had been made up by the manufacturer, and started upon its journey, he opened it and displayed its contents, not the package, for sale; and it affirmatively appears that he sold one of the small parcels from the original package to a customer who applied for the same. We think these distinguishing features are quite important; for if it be the rule that all imported goods, no matter how treated or sold, are exempt from state taxation or regulation, it is apparent that the' state must forego the exercise of the
It is sufficient for the present to say, generally that when the importer has so acted upon the thing imported that it has become incorporated and mixed up with the mass of property in the country, it has perhaps, lost its distinctive character as 'an import, and has become subject to the taxing power of the state.
In Low v. Austin, 80 U. S. 29 (20 L. Ed. 517) we find the following:
Goods imported do not lose their character as imports and become incorporated into the mass of property of a state, until they have passed from the control of the importer, or been broken up by him from their original cases.
Erom the syllabus of Leisy v. Hardin, 135 U. S. 100 (10 Sup. Ct. 681, 34 L. Ed. 128) we quote as follows:
A statute of a state, prohibiting the sale of any intoxicating liquors, except for pharmaceutical, medicinal, chemical or sacramental purposes, and under a license from a county court of the state, is, as applied to a sale by the importer, and in the original package or kegs, unbroken and unopened, of such liquors manufactured in and brought from another state, unconstitutional and void, as repugnant to the clause of the Constitution granting to Congress the power to regulate commerce with foreign nations and among the several states.
Erom the opinion in that case, written by the Chief Justice, we make the following extract:
While by virtue of its jurisdiction over persons and property within its limits, a state may provide for the security of the lives, limbs, health and comfort of persons and the protection of property so situated, yet a subject-matter which has been confided exclusively to Congress by the Constitution is not within the jurisdiction of the police power of the state, unless placed there by Congressional
Hence, inasmuch as interstate commerce, consisting in the transportation, purchase, sale and exchange of commodities, is national in its character, and must be governed by a uniform system, so long as Congress does not pass any law to regulate it, or allowing the states so to do, it thereby indicates its will that such commerce shall be free and untrammeled. County of Mobile v. Kimball, 102 U. S. 691 (26 L. Ed. 238); Brown v. Houston, 114 U. S. 622, 631 (5 Sup. Ct. 1091, 29 L. Ed. 257); Railroad Co. v. Illinois, 118 U. S. 557 (7 Sup. Ct. 4, 30 L. Ed. 244).
From the syllabus to Vance v. Vandercock, 170 U. S. 438 (18 Sup. Ct. 674, 42 L. Ed. 1100) we quote the following:
The right to send liquors from one state into another, and the act of sending the same, is interstate commerce, the regulation whereof has been committed by the Constitution of the United States to Congress; and hence, that a state law which denies such a right, or substantially interferes with or hampers the same, is in conflict with the Constitution of the United States. The power to ship merchandise from one state into another carries with it, as an incident, the right in the receiver of the goods to sell them in the original packages, any state regulation to the contrary notwithstanding; that is to say, that the goods received by interstate commerce remain under the shelter of the interstate commerce clause of the Constitution, until by a sale in the original package they have been commingled with the general mass of property in the state.
In May v. New Orleans, 178 U. S. 496 (20 Sup. Ct. 976, 44 L. Ed. 1165) it appeared that May & Co., merchants at New Orleans, were engaged in the business of importing goods from abroad, and selling them. In each
Generally speaking, these are the cases relied upon by counsel for the state, and it is apparent that none of them reach the exact proposition presented by the record in the instant case. There are decisions from that court which, to our minds, clearly rule the one now before us. They commence probably with the State Freight Tax Cases, 15 Wall. 232, 21 L. Ed. 146) and conclude perhaps with Rearick v. Penn., 203 U. S. 507 (27 Sup. Ct. 159, 51 L. Ed. 295). Erom some of these we shall quote to demonstrate how closely they are in point. For example, in Bowman v. Railroad Co., 125 U. S. 465 (8 Sup. Ct. 689, 1062, 31 L. Ed. 700) the court said:
Beyond all question, the transportation of freight, or of the subjects of commerce, for the purpose of exchange or sale, is a constituent of commerce itself. ... It would be absurd to suppose that the transmission of the subjects of trade from the state to the buyer,-or from the place of production to the market, was not contemplated, for without that there could be no consummated trade, either with foreign nations or among the states . . . nor does it make any difference whether this interchange of commodities is by land or by water. Ip either case the
In Gloucester Ferry Co. v. Pennsylvania, 114 U. S. 196 (5 Sup. Ct. 826, 29 L. Ed. 158) the court said:
The means of transportation of persons and freight between the states does not change the character of the business as one' of commerce, nor the time within which the distance between the states may be traversed. The' power of Congress to regulate commerce also embraces within its control all the instrumentalities by which that commerce may be carried on, and the means by which it may be aided and encouraged.
There are two cases from that court so nearly in point and so conclusive that without noting others we shall make liberal quotations from these two, because we find therein the rules which govern the case now before us. These decisions are Caldwell v. North Carolina, 187 U. S. 622 (23 Sup. Ct. 229, 47 L. Ed. 336) and Rearick v. Pennsylvania, 203 U. S. 507 (27 Sup. Ct. 159, 51 L. Ed. 295). In the former Judge Shiras, writing the opinion, said:
The defendant, Caldwell, being employed by the Chicago Portrait Company, of Chicago, Ill., went to Greensboro for the purpose of delivering certain pictures and frames for which contracts of sale had previously beeen made by other employees of the Chicago Portrait Company, who had preceded the defendant in Greensboro. The defendant went to the Southern Railway freight station and took therefrom large packages of pictures and frames which had been shipped to Greensboro, N. C., addressed to the Chicago Portrait Company, carried these packages to his rooms in the Woods House, a hotel in the city of Greensboro, and there broke the bulk, placing said pictures in their proper frames, and from this point delivered the pictures, one at a time, to the purchasers in the city of Greensboro. The defendant had been engaged in this work two days when arrested.
Mr. Justice Shiras, after quoting the foregoing from the opinion of the Supreme Court of North Carolina, said:
We are not persuaded by this reasoning. It seems to proceed from two propositions: First, that the pictures in question were not completed before they were brought to Greensboro; and, second, that the articles were not shipped directly to the purchasers, but to an agent of the senders in Greensboro. But it certainly can not be pretended that if the pictures and the disconnected frames had been directly shipped to the purchasers, the license tax could have been imposed either on the vendor out of the state or the purchaser within the state. If the pictures and the frames intended for them had been shipped directly to the purchasers, whether in the same or separate packages, such a transaction would, beyond question, be interstate commerce beyond the reach of the taxing power of the state. It is too plain for argument that the supposed incomplete condition of articles of commerce, if shipped directly to the purchasers can not subject them to a license fax. But we are not disposed to concede that, under the facts of this case, the pictures were, in any proper sense, incomplete when received in Greensboro. That- the frames and the pictures were in separate packages, if such was the case, was merely for convenience in packing and handling, and placing the pictures in their proper places (the language of the verdict) meant that each picture was placed in the frame designed for it. . . . ,
Nor does the fact that the articles were not shipped separately and directly to each individual purchaser, but were sent to an agent of the vendor at' Greensboro, who delivered them to the purchasers, deprive the transaction of its character as interstate commerce. It was only that the vendor used two instead of one agency in the delivery. It would seem evident that, if the vendor had sent the articles by an express company, which should collect on delivery, such a mode of delivery would not have subjected
Even more closely in point is tbe Rearick Case, from which we quote as follows:
Tbe following is a shortened statement of tbe facts agreed: An Ohio corporation employed an agent to solicit in Sunbury, retail orders to the company for groceries. When tbe company bad received a large number of such orders it filled them at its place of business in Columbus, Ohio, by putting up tbe objects of tbe several orders in distinct packages and forwarding them to tbe defendant by rail, addressed to him for ‘A. B.,’ tbe customer, with the number of tbe orpler also on tbe package for further identification. Tbe company ultimately kept tbe orders, but it kept no book accounts with tbe customers, looking only to tbe defendant. Tbe defendant alone bad authority to receive tbe goods from tbe railroad, and when be received them be delivered thecm, as was bis duty, to tbe customers for cash paid to him. He then sent the money to tbe corporation. Tbe customer bad tbe right to refuse tbe goods if not equal to tbe sample shown to him when be gave tbe order. In tbat or other cases of nondelivery tbe defendant returned the goods to Columbus. No shipments were made to defendant except to fill such orders, and no deliveries were made by him except to tbe -parties named on tbe packages. In tbe case of brooms, they were tagged
If the acts of the plaintiff in error were done in the course of commerce between several states, the law is established that his request for a ruling was right, and that he should have been discharged. Robbins v. Shelby County Taxing District, 120 U. S. 489, 497 (7 Sup. Ct. 592, 30 L. Ed. 694); Leisy v. Hardin, 135 U. S. 100 (10 Sup. Ct. 681, 34 L. Ed. 128); Caldwell v. North Carolina, 187 U. S. 622 (23 Sup. Ct. 229, 47 L. Ed. 336). It will be seen from the insertion of the statement concerning the brooms that a ground relied upon by the prosecution to avoid that conclusion was that the goods, or at least this part of them, were not in the original packages when delivered, and that therefore the case did not fall within the decisions last cited, but rather within Austin v. Tennessee, 179 U. S. 343 (21 Sup. Ct. 132, 45 L. Ed. 224); Cook v. Marshall County, 196 U. S. 261 (25 Sup. Ct. 233, 49 L. Ed. 471); May v. New Orleans, 178 U. S. 496 (20 Sup. Ct. 976, 44 L. Ed. 1165). In other words, it was contended that the brooms, before they were sold, had become mingled with, were part of, the common mass of goods in the state, and so subject to the local law. But the doctrine as to original packages primarily concerns the right to sell within the prohibiting or taxing state goods coming into it from outside. When the goods have been sold before arrival, the limitations that still may be found to the power of the state will be due, generally, at least, to other reasons, and we shall consider whether the limitations may not exist, irrespective of that doctrine, in some oases where there is no executed sale. Hence the prosecution,.. whatever its assumption on the point last-mentioned, sought to show that there was no sale, until the goods were delivered and the cash paid for them. The superior court contented itself with the suggestion that the contract would have been satisfied by the delivery of articles corresponding to the sample, although bought at the next door. The argument submitted to us goes farther, and affirms that the order was not accepted and did not hind the corporation until the delivery took place.
Commerce .among the several states is a practical conception not drawn from the 'witty diversities’ (Yelve, 33) of the law of sales. Swift & Co. v. United States, 196 U. S. 375, 398 and 399 (25 Sup. Ct. 276, 49 L. Ed. 518). The brooms were specifically appropriated to specific contract, in a practical, if not in a technical sense. Under such circumstances it is plain that, wherever might have been the title, the transport of the brooms for the purpose of fulfilling the contracts was protected commerce. In Brennan v. Titusville, 153 U. S. 289 (14 Sup. Ct. 829, 38 L. Ed. 719) pictures were sold by sample, as the brooms were here, and although the pictures were consigned to the purchasers directly, the railroad collecting the price, there was no discussion of the question whether the title had passed. In American Express Company v. Iowa, 196 U. S. 133, 143 (25 Sup. Ct. 182, 49 L. Ed. 417) that question was referred to only to be waived. In Caldwell v. North Carolina, 187 U. S. 622 (23 Sup. Ct. 229, 47 L. Ed. 336) the pictures were consigned to the defendant, an agent, as here, with the additional facts that the pictures and frames were sent in large packages which were opened by the agent on their arrival, and that the pictures, then, for the first time, were put into their proper frames, and for all that appears, then for the first time, appropriated to specific purchasers.
These two excerpts are so conclusive upon the proposi
We shall not, for reasons already stated, discuss the limitations upon the police power of the state. Doubtless the attitude of the Attorney-General with reference to this matter is due in part to the decisions of the Federal Supreme Court in Leisy v. Hardin, supra. New Orleans Co. v. Light Co., 115 U. S. 650 (6 Sup. Ct. 252, 29 L. Ed. 516); Henderson v. Mayor, 92 U. S. 259 (23 L. Ed. 543); Railroad Co. v. Husen, 95 U. S. 465 (24 L. Ed. 527); Walling v. Mich., 116 U. S. 446 (6 Sup. Ct. 454, 29 L. Ed. 691) and other like cases. There is no subject more perplexing than that of the limitations upon the police power of the state and we shall not attempt a discussion thereof without full argument by counsel. There is no occasion to decide the matter now, for it is not argued and this opinion should not be regarded as settling the matter for this juris<|jetion. Whatever our individual views of the question upon principle, or however we may regard some of the decisions of the United States Supreme Court
The decision of the trial court seems to be correct, and it is affirmed.