MUNN
v. ILLINOIS.
SUPREME
COURT OF THE UNITED STATES
94
U.S. 113; 24 L. Ed. 77; 1876 U.S. LEXIS 1842; 4 Otto 113
OCTOBER,
1876 Term
PRIOR HISTORY: [***1]
ERROR to the Supreme
Court of the State of Illinois.
OPINIONBY: WAITE
OPINION: [*123]
[**83] MR. CHIEF JUSTICE WAITE
delivered the opinion of the court.
The question to be
determined in this case is whether the general assembly of Illinois can, under
the limitations upon [***21] the legislative power of the States
imposed by the
Constitution of the United States, fix by law the maximum of charges for the
storage of grain in warehouses at Chicago and other places in the State
having not less than
one hundred thousand inhabitants, "in which grain is stored in bulk, and
in which the grain of different owners is mixed together, or in which grain is
stored in such a
manner that the identity of different lots or parcels cannot be accurately
preserved."
It is claimed that
such a law is repugnant --
1. To that part of sect.
8, art. 1, of the Constitution of the United States which confers upon Congress
the power "to regulate commerce with foreign nations and among
the several
States;"
2. To that part of
sect. 9 of the same article which provides that "no preference shall be
given by any regulation of commerce or revenue to the ports of one State over
those of
another;" and
3. To that part of
amendment 14 which ordains that no State shall "deprive any person of
life, liberty, or property, without due process of law, nor deny to any person
within its
jurisdiction the equal protection of the laws."
We will consider the
last of these objections first.
[***22]
Every statute is
presumed to be constitutional. The courts ought not to declare one to be
unconstitutional, unless it is clearly so. If there is doubt, the expressed
will of
the legislature should
be sustained.
The Constitution
contains no definition of the word "deprive," as used in the
Fourteenth Amendment. To determine its signification, therefore, it is
necessary to ascertain
the effect which usage
has given it, when employed in the same or a like connection.
While this provision
of the amendment is new in the Constitution of the United States, as a
limitation upon the powers of the States, it is old as a principle of civilized
government. It is
found in Magna Charta, and, in substance if not in form, in [*124] nearly or quite all the constitutions that have been from time to
time adopted by
the several States of
the Union. By the Fifth Amendment, it was introduced into the Constitution of
the United States as a limitation upon the powers of the national
government, and by the
Fourteenth, as a guaranty against any encroachment upon an acknowledged right
of citizenship by the legislatures of the States.
When the people of the
United Colonies separated from Great
[***23] Britain, they changed
the form, but not the substance, of their government. They retained for
the purposes of
government all the powers of the British Parliament, and through their State
constitutions, or other forms of social compact, undertook to give practical
effect to such as they
deemed necessary for the common good and the security of life and property. All
the powers which they retained they committed to their
respective States,
unless in express terms or by implication reserved to themselves. Subsequently,
when it was found necessary to establish a national government for
national purposes, a
part of the powers of the States and of the people of the States was granted to
the United States and the people of the United States. This grant
operated as a further
limitation upon the powers of the States, so that now the governments of the
States possess all the powers of the Parliament of England, except
such as have been
delegated to the United States or reserved by the people. The reservations by
the people are shown in the prohibitions of the constitutions.
When one becomes a
member of society, he necessarily parts with some rights or privileges which,
as an individual [***24] not affected by his relations to others, he
might retain. "A
body [**84] politic," as aptly defined in the preamble of the
Constitution of Massachusetts, "is a social compact by which the whole
people covenants
with each citizen, and
each citizen with the whole people, that all shall be governed by certain laws
for the common good." This does not confer power upon the whole
people to control
rights which are purely and exclusively private, Thorpe v. R. & B. Railroad
Co., 27 Vt. 143; but it does authorize the establishment of laws requiring
each citizen to so
conduct himself, and so use his own property, as not unnecessarily to injure
another. This is the very essence of government, and [*125] has found
expression in the
maxim sic utere tuo ut alienum non loedas. From this source come the police
powers, which, as was said by Mr. Chief Justice Taney in the License
Cases, 5 How. 583,
"are nothing more or less than the powers of government inherent in every
sovereignty, . . . that is to say, . . . the power to govern men and
things."
Under these powers the
government regulates the conduct of its citizens one towards another, and the
manner in which each shall [***25] use his own property, when
such regulation
becomes necessary for the public good. In their exercise it has been customary
in England from time immemorial, and in this country from its first
colonization, to
regulate ferries, common carriers, hackmen, bakers, millers, wharfingers,
innkeepers, &c., and in so doing to fix a maximum of charge to be made for
services rendered,
accommodations furnished, and articles sold. To this day, statutes are to be
found in many of the States upon some or all these subjects; and we
think it has never yet
been successfully contended that such legislation came within any of the
constitutional prohibitions against interference with private property. With
the Fifth Amendment in
force, Congress, in 1820, conferred power upon the city of Washington "to
regulate . . . the rates of wharfage at private wharves, . . . the
sweeping of chimneys,
and to fix the rates of fees therefor, . . . and the weight and quality of
bread," 3 Stat. 587, sect. 7; and, in 1848, "to make all necessary
regulations respecting
hackney carriages and the rates of fare of the same, and the rates of hauling
by cartmen, wagoners, carmen, and draymen, and the rates of
commission of
auctioneers," [***26] 9 id. 224, sect. 2.
From this it is
apparent that, down to the time of the adoption of the Fourteenth Amendment, it
was not supposed that statutes regulating the use, or even the price of
the use, of private
property necessarily deprived an owner of his property without due process of
law. Under some circumstances they may, but not under all. The
amendment does not
change the law in this particular: it simply prevents the States from doing
that which will operate as such a deprivation.
This brings us to
inquire as to the principles upon which this power of regulation rests, in
order that we may determine what is within and what without its operative
effect. Looking, [*126]
then, to the common law, from whence came the right which the
Constitution protects, we find that when private property is "affected
with a
public interest, it
ceases to be juris privati only." This was said by Lord Chief Justice Hale
more than two hundred years ago, in his treatise De Portibus Maris, 1
Harg. Law Tracts, 78,
and has been accepted without objection as an essential element in the law of
property ever since. Property does become clothed with a public
interest when used in
a manner [***27] to make it of public consequence, and affect
the community at large. When, therefore, one devotes his property to a use in
which the public has
an interest, he, in effect, grants to the public an interest in that use, and
must submit to be controlled by the public for the common good, to the
extent of the interest
he has thus created. He may withdraw his grant by discontinuing the use; but,
so long as he maintains the use, he must submit to the control.
Thus, as to ferries,
Lord Hale says, in his treatise De Jure Maris, 1 Harg. Law Tracts, 6, the king
has "a right of franchise or privilege, that no man may set up a
common ferry for all
passengers, without a prescription time out of mind, or a charter from the
king. He may make a ferry for his own use or the use of his family, but
not for the common use
of all the king's subjects passing that way; because it doth in consequence
tend to a common charge, and is become a thing of public interest
and use, and every man
for his passage pays a toll, which is a common charge, and every ferry ought to
be under a public regulation, viz., that it give attendance at due
times, keep a boat in
due order, and take but reasonable toll; for
[***28] if he fail in these he
is finable." So if one owns the soil and landing-places on both banks of a
stream, he cannot use
them for the purposes of a public ferry, except upon such terms and conditions
as the body politic may from time to time impose; and this
because the common
good requires that all public ways shall be under the control of the public
authorities. This privilege or prerogative of the king, who in this
connection only
represents and gives another name to the body politic, is not primarily for his
profit, but for the protection of the people and the promotion of the
general welfare.
[*127]
And, again, as to wharves and wharfingers, Lord Hale, in his treatise De
Portibus Maris, already cited, says: --
"A man, for his
own private advantage, may, in a port or town, set up a wharf or crane, and may
take what rates he and his customers can agree for cranage, wharfage,
housellage, pesage;
for he doth no more than is lawful for any man to do, viz., makes the most of
his own. . . . If the king or subject have a public wharf, unto which all
persons that come to
that port must come and unlade or lade their goods as for the purpose, because
they are the wharfs only [***29] licensed by the king, . . . or
because there is no
other wharf in that port, as it may fall out where a port is newly erected; in
that case there cannot be taken arbitrary and excessive duties for
cranage, wharfage,
pesage, &c., neither can they be enhanced to an immoderate rate; but the
duties must be reasonable and moderate, though settled by the king's
license or charter.
For now the wharf and crane and other conveniences are affected with a public
interest, and they cease to be juris privati only; as if a man set out a
street in new building
on his own land, it is now no longer bare private interest, but is affected by
a public interest."
[**85]
This statement of the law by Lord Hale was cited with approbation and
acted upon by Lord Kenyon at the beginning of the present century, in Bolt v.
Stennett, 8 T.R. 606.
And the same has been
held as to warehouses and warehousemen. In Aldnutt v. Inglis, 12 East, 527,
decided in 1810, it appeared that the London Dock Company
had built warehouses
in which wines were taken in store at such rates of charge as the company and
the owners might agree upon. Afterwards the company obtained
authority, under the
general [***30] warehousing act, to receive wines from
importers before the duties upon the importation were paid; and the question
was,
whether they could
charge arbitrary rates for such storage, or must be content with a reasonable
compensation. Upon this point Lord Ellenborough said (p. 537): --
"There is no
doubt that the general principle is favored, both in law and justice, that
every man may fix what price he pleases upon his own property, or the use of
it; but
if for a particular
purpose the public have a right to resort to his premises and make use of them,
and he have a monopoly in them for that purpose, if [*128] he will
take the benefit of
that monopoly, he must, as an equivalent, perform the duty attached to it on
reasonable terms. The question then is, whether, circumstanced as this
company is, by the
combination of the warehousing act with the act by which they were originally
constituted, and with the actually existing state of things in the port of
London, whereby they
alone have the warehousing of these wines, they be not, according to the
doctrine of Lord Hale, obliged to limit themselves to a reasonable
compensation for such
warehousing. And, according to him, whenever
[***31] the accident of time
casts upon a party the benefit of having a legal monopoly of
landing goods in a
public port, as where he is the owner of the only wharf authorized to receive goods
which happens to be built in a port newly erected, he is confined
to take reasonable
compensation only for the use of the wharf."
And further on (p.
539): --
"It is enough
that there exists in the place and for the commodity in question a virtual
monopoly of the warehousing for this purpose, on which the principle of law
attaches, as laid down
by Lord Hale in the passage referred to [that from De Portibus Maris already
quoted], which includes the good sense as well as the law of the
subject."
And in the same case
Le Blanc, J., said (p. 541): --
"Then, admitting
these warehouses to be private property, and that the company might discontinue
this application of them, or that they might have made what terms
they pleased in the
first instance, yet having, as they now have, this monopoly, the question is,
whether the warehouses be not private property clothed with a public
right, and, if so, the
principle of law attaches upon them. The privilege, then, of bonding these
wines being at present [***32] confined by the act of Parliament to the
company's warehouses,
is it not the privilege of the public, and shall not that which is for the good
of the public attach on the monopoly, that they shall not be bound to
pay an arbitrary but a
reasonable rent? But upon this record the company resist having their demand
for warehouse rent confined within any limit; and, though it does
not follow that the
rent in fact fixed by them is unreasonable, they do not choose to insist on its
being reasonable for the purpose of raising the question. For this
purpose, therefore,
the question may be taken to be whether they may claim an unreasonable rent.
But though this be private property, yet the principle laid down by
Lord Hale
attaches [*129] upon it, that when private property is
affected with a public interest it ceases to be juris privati only; and, in
case of its dedication to such
a purpose as this, the
owners cannot take arbitrary and excessive duties, but the duties must be
reasonable."
We have quoted thus
largely the words of these eminent expounders of the common law, because, as we
think, we find in them the principle which supports the
legislation we are now
examining. Of [***33] Lord Hale it was once said by a learned
American judge, --
"In England, even
on rights of prerogative, they scan his words with as much care as if they had
been found in Magna Charta; and the meaning once ascertained, they
do not trouble
themselves to search any further." 6 Cow. (N.Y.) 536, note.
In later times, the
same principle came under consideration in the Supreme Court of Alabama. That
court was called upon, in 1841, to decide whether the power
granted to the city of
Mobile to regulate the weight and price of bread was unconstitutional, and it
was contended that "it would interfere with the right of the citizen to
pursue his lawful
trade or calling in the mode his judgment might dictate;" but the court
said, "there is no motive . . . for this interference on the part of the
legislature with
the lawful actions of
individuals, or the mode in which private property shall be enjoyed, unless
such calling affects the public interest, or private property is employed in
a manner which
directly affects the body of the people. Upon this principle, in this State,
tavern-keepers are licensed; . . . and the Country Court is required, at least
once a year, to settle
the rates of innkeepers. [***34] Upon the same principle is founded the
control which the legislature has always exercised in the establishment
and regulation of
mills, ferries, bridges, turnpike roads, and other kindred subjects."
Mobile v. Yuille, 3 Ala. N.S. 140.
From the same source
comes the power to regulate the charges of common carriers, which was done in
England as long ago as the third year of the reign of William
and Mary, and
continued until within a comparatively recent period. And in the first statute
we find the following suggestive preamble, to wit: --
[*130]
"And whereas divers wagoners and other carriers, by combination amongst
themselves, have raised the prices of carriage of goods in many places to
excessive rates, to
the great injury of the trade: Be it, therefore, enacted," &c. 3 W.
& M. c. 12, § 24; 3 Stat. at Large (Great Britain), 481.
Common carriers
exercise a sort of public office, and have duties to perform in which the
public is interested. New Jersey Nav. Co. v. Merchants' Bank, 6 How. 382.
Their business is,
therefore, "affected with a public interest," within the meaning of
the doctrine which Lord Hale has so forcibly stated.
But we need not go
further. [***35] Enough has
[**86] already been said to show
that, when private property is devoted to a public use, it is subject to public
regulation. It remains
only to ascertain whether the warehouses of these plaintiffs in error, and the
business which is carried on there, come within the operation of this
principle.
For this purpose we
accept as true the statements of fact contained in the elaborate brief of one
of the counsel of the plaintiffs in error. From these it appears that "the
great producing region
of the West and North-west sends its grain by water and rail to Chicago, where
the greater part of it is shipped by vessel for transportation to
the seaboard by the
Great Lakes, and some of it is forwarded by railway to the Eastern ports. . . .
Vessels, to some extent, are loaded in the Chicago harbor, and
sailed through the St.
Lawerence directly to Europe. . . . The quantity [of grain] received in Chicago
has made it the greatest grain market in the world. This business
has created a demand
for means by which the immense quantity of grain can be handled or stored, and
these have been found in grain warehouses, which are
commonly called
elevators, because the grain is elevated
[***36] from the boat or car, by
machinery operated by steam, into the bins prepared for its reception, and
elevated from the
bins, by a like process, into the vessel or car which is to carry it on. . . .
In this way the largest traffic between the citizens of the country north and
west of Chicago and
the citizens of the country lying on the Atlantic coast north of Washington is
in grain which passes through the elevators of Chicago. In this way the
trade in grain is
carried on by the inhabitants of seven or eight of the [*131]
great States of the West with four or five of the States lying on the
sea-shore, and forms
the largest part of
inter-state commerce in these States. The grain warehouses or elevators in
Chicago are immense structures, holding from 300,000 to 1,000,000
bushels at one time,
according to size. They are divided into bins of large capacity and great
strength. . . . They are located with the river harbor on one side and the
railway tracks on the
other; and the grain is run through them from car to vessel, or boat to car, as
may be demanded in the course of business. It has been found
impossible to preserve
each owner's grain separate, and this has given rise to [***37]
a system of inspection and grading, by which the grain of different
owners is
mixed, and receipts
issued for the number of bushels which are negotiable, and redeemable in like
kind, upon demand. This mode of conducting the business was
inaugurated more than
twenty years ago, and has grown to immense proportions. The railways have found
it impracticable to own such elevators, and public policy
forbids the
transaction of such business by the carrier; the ownership has, therefore, been
by private individuals, who have embarked their capital and devoted their
industry to such
business as a private pursuit."
In this connection it
must also be borne in mind that, although in 1874 there were in Chicago
fourteen warehouses adapted to this particular business, and owned by
about thirty persons,
nine business firms controlled them, and that the prices charged and received
for storage were such "as have been from year to year agreed upon
and established by the
different elevators or warehouses in the city of Chicago, and which rates have
been annually published in one or more newspapers printed in said
city, in the month of
January in each year, as the established rates for the year then [***38]
next ensuing such publication." Thus it is apparent that all the
elevating
facilities through
which these vast productions "of seven or eight great States of the
West" must pass on the way "to four or five of the States on the
seashore" may be a
"virtual"
monopoly.
Under such
circumstances it is difficult to see why, if the common carrier, or the miller,
or the ferryman, or the innkeeper, or the wharfinger, or the baker, or the
cartman, or the [*132]
hackney-coachman, pursues a public employment and exercises "a sort
of public office," these plaintiffs in error do not. They stand, to use
again the landguage of
their counsel, in the very "gateway of commerce," and take toll from
all who pass. Their business most certainly "tends to a common charge, and
is become a thing of
public interest and use." Every bushel of grain for its passage "pays
a toll, which is a common charge," and, therefore, according to Lord Hale,
every such
warehouseman "ought to be under public regulation, viz., that he . . .
take but reasonable toll." Certainly, if any business can be clothed
"with a public
interest, and cease to
be juris privati only," this has been. It may not be made so by the
operation [***39] of the Constitution of Illinois or this
statute, but it is by the
facts.
We also are not
permitted to overlook the fact that, for some reason, the people of Illinois,
when they revised their Constitution in 1870, saw fit to make it the duty of
the general assembly
to pass laws "for the protection of producers, shippers, and receivers of
grain and produce," art. 13, sect. 7; and by sect. 5 of the same article,
to
require all railroad
companies receiving and transporting grain in bulk or otherwise to deliver the
same at any elevator to which it might be consigned, that could be
reached by any track
that was or could be used by such company, and that all railroad companies
should permit connections to be made with their tracks, so that any
public werehouse,
&c., might be reached by the cars on their railroads. This indicates very
clearly that during the twenty years in which this peculiar business had been
assuming its present
"immense proportions," something had occurred which led the whole
body of the people to suppose that remedies such as are usually employed to
prevent abuses by
virtual monopolies might not be inappropriate here. For our purposes we must
assume that, if a state [***40] of facts could exist that would justify
such legislation, it
actually did exist when the statute now under consideration was passed. For us
the question is one of power, not of expediency. If no state of
circumstances could
exist to justify such a statute, then we may declare this one void, because in
excess of the legislative power of the State. But if it could, we must
presume it did. Of the
propriety of legislative [*133] interference within the scope of legislative
power, the legislature is the exclusive judge.
Neither is it a matter
of any moment that no precedent can be found for a statute precisely like this.
It is conceded that the business is
[**87] one of recent origin,
that
its growth has been
rapid, and that it is already of great importance. And it must also be conceded
that it is a business in which the whole public has a direct and
positive interest. It
presents, therefore, a case for the application of a long-known and
well-established principle in social science, and this statute simply extends
the law
so as to meet this new
development of commercial progress. There is no attempt to compel these owners
to grant the public an interest in their property, [***41] but
to declare their
obligations, if they use it in this particular manner.
It matters not in this
case that these plaintiffs in error had built their warehouses and established
their business before the regulations complained of were adopted. What
they did was from the
beginning subject to the power of the body politic to require them to conform
to such regulations as might be established by the proper authorities
for the common good.
They entered upon their business and provided themselves with the means to
carry it on subject to this condition. If they did not wish to submit
themselves to such
interference, they should not have clothed the public with an interest in their
concerns. The same principle applies to them that does to the proprietor
of a hackney-carriage,
and as to him it has never been supposed that he was exempt from regulating
statutes or ordinances because he had purchased his horses and
carriage and
established his business before the statute or the ordinance was adopted.
It is insisted,
however, that the owner of property is entitled to a reasonable compensation
for its use, even though it be clothed with a public interest, and that what is
reasonable is [***42]
a judicial and not a legislative question.
As has already been
shown, the practice has been otherwise. In countries where the common law
prevails, it has been customary from time immemorial for the
legislature to declare
what shall be a reasonable compensation under such circumstances, or, perhaps
more properly speaking, to fix a maximum beyond which any
charge made would be
unreasonable. [*134] Undoubtedly, in mere private contracts,
relating to matters in which the public has no interest, what is reasonable
must
be ascertained
judicially. But this is because the legislature has no control over such a
contract. So, too, in matters which do affect the public interest, and as to
which
legislative control
may be exercised, if there are no statutory regulations upon the subject, the
courts must determine what is reasonable. The controlling fact is the
power to regulate at
all. If that exists, the right to establish the maximum of charge, as one of
the means of regulation, is implied. In fact, the common-law rule, which
requires the charge to
be reasonable, is itself a regulation as to price. Whthout it the owner could
make his rates at will, and compel the public to yield [***43]
to his
terms, or forego the
use.
But a mere common-law
regulation of trade or business may be changed by statute. A person has no
property, no vested interest, in any rule of the common law. That
is only one of the
forms of municipal law, and is no more sacred than any other. Rights of
property which have been created by the common law cannot be taken away
without due process;
but the law itself, as a rule of conduct, may be changed at the will, or even
at the whim, of the legislature, unless prevented by constitutional
limitations. Indeed,
the great office of statutes is to remedy defects in the common law as they are
developed, and to adapt it to the changes of time and circumstances.
To limit the rate of
charge for services rendered in a public employment, or for the use of property
in which the public has an interest, is only changing a regulation
which existed before.
It establishes no new principle in the law, but only gives a new effect to an
old one.
We know that this is a
power which may be abused; but that is no argument against its existence. For
protection against abuses by legislatures the people must resort to
the polls, not to the
courts.
After what has [***44]
already been said, it is unnecessary to refer at length to the effect of
the other provision of the Fourteenth Amendment which is relied upon,
viz., that no State
shall "deny to any person within its jurisdiction the equal protection of
the laws." Certainly, it cannot be claimed that this prevents the State
from
regulating the fares
of hackmen or the [*135] charges of draymen in Chicago, unless it
does the same thing in every other place within its jurisdiction. But, as has
been
seen, the power to
regulate the business of warehouses depends upon the same principle as the
power to regulate hackmen and draymen, and what cannot be done in
the one case in this
particular cannot be done in the other.
We come now to
consider the effect upon this statute of the power of Congress to regulate
commerce.
It was very properly
said in the case of the State Tax on Railway Gross Receipts, 15 Wall. 293, that
"it is not every thing that affects commerce that amounts to a
regulation of it,
within the meaning of the Constitution." The warehouses of these
plaintiffs in error are situated and their business carried on exclusively
within the limits
of the State of
Illinois. They are used [***45] as instruments by those engaged in State as
well as those engaged in inter-state commerce, but they are no more
necessarily a part of
commerce itself than the dray or the cart by which, but for them, grain would
be transferred from one railroad station to another. Incidentally they
may become connected
with inter-state commerce, but not necessarily so. Their regulation is a thing
of domestic concern, and, cettainly, until Congress acts in
reference to their
inter-state relations, the State may exercise all the powers of government over
them, even though in so doing it may indirectly operate upon commerce
outside its immediate
jurisdiction. We do not say that a case may not arise in which it will be found
that a State, under the form of regulating its own arrairs, has
encroached upon the
exclusive domain of Congress in respect to inter-state commerce, but we do say
that, upon the facts as they are represented to us in this record,
that has not been
done.
The remaining
objection, to wit, that the statute in its present form is repugnant to sect.
9, art. 1, of the Constitution of the United States, because it gives
preference to
the ports of one State
over those of another, may be
[***46] disposed of by the
single remark that his provision operates only as a limitation of the powers of
[**88]
Congress, and in no respect afects the States in the regulation of their
domestic affairs.
We conclude,
therefore, that the statute in question is not repugnant to the Constitution of
the United States, and that [*136] there is no error in the judgment. In
passing upon this case
we have not been unmindful of the vast importance of the questions involved.
This and cases of a kindred character were argued before us more
than a year ago by
most eminent counsel, and in a manner worthy of their well-earned reputations.
We have kept the cases long under advisement, in order that their
decision might be the
result of our mature deliberations.
Judgment affirmed.
MR. JUSTICE FIELD and
MR. JUSTICE STRONG dissented.
DISSENTBY: FIELD;
STRONG
DISSENT: MR. JUSTICE
FIELD. I am compelled to dissent from the decision of the court in this case,
and from the reasons upon which that decision is founded.
The principle upon
which the opinion of the majority proceeds is, in my judgment, subversive of
the rights of private property, heretofore believed to be protected by
constitutional [***47]
guaranties against legislative interference, and is in conflict with the
authorities cited in its support.
The defendants had
constructed their warehouse and elevator in 1862 with their own means, upon
ground leased by them for that purpose, and from that time until the
filing of the
information against them had transacted the business of receiving and storing
grain for hire. The rates of storage charged by them were annually established
by arrangement with
the owners of different elevators in Chicago, and were published in the month
of January. In 1870 the State of Illinois adopted a new constitution,
and by it "all
elevators or storehouses where grain or other property is stored for a
compensation, whether the property stored be kept separate or not, are declared
to
be public
warehouses."
In April, 1871, the
legislature of the State passed an act to regulate these warehouses, thus
declared to be public, and the warehousing and inspection of grain, and to
give effect to this
article of the Constitution. By that act public warehouses, as defined in the
Constitution, were divided into three classes, the first of which embraced all
warehouses, elevators,
or granaries located in [***48] cities having not less than one hundred
thousand inhabitants, in which grain was stored in bulk, and the grain of
different owners was
mixed together, or stored in such manner
[*137] that the identity of
different lots or parcels could not be accurately preserved. To this class the
elevator of the
defendants belonged. The act prescribed the maximum of charges which the
proprietor, lessee, or manager of the warehouse was allowed to make for
storage and handling
of grain, including the cost of receiving and delivering it, for the first
thirty days or any part thereof, and for each succeeding fifteen days or any
part
thereof; and it
required him to procure from the Circuit Court of the county a license to
transact business as a public warehouseman, and to give a bond to the people
of the State in the
penal sum of $10,000 for the faithful performance of his duty as such warehouseman
of the first class, and for his full and unreserved compliance with
all laws of the State
in relation thereto. The license was made revocable by the Circuit Court upon a
summary proceeding for any violation of such laws. And a penalty
was imposed upon every
person transacting business as a public warehouseman [***49] of the first
class, without first procuring a license, or continuing in such
business after his
license had been revoked, of not less than $100 or more than $500 for each day
on which the business was thus carried on. The court was also
authorized to refuse
for one year to renew the license, or to grant a new one to any person whose
license had been revoked. The maximum of charges prescribed by
the act for the
receipt and storage of grain was different from that which the defendants had
previously charged, and which had been agreed to by the owners of the
grain. More extended
periods of storage were required of them than they formerly gave for the same
charges. What they formerly charged for the first twenty days of
storage, the act
allowed them to charge only for the first thirty days of storage; and what they
formerly charged for each succeeding ten days after the first twenty, the
act allowed them to
charge only for each succeeding fifteen days after the first thirty. The
defendants, deeming that they had a right to use their own property in such
manner as they
desired, not inconsistent with the equal right of others to a like use, and
denying the power of the legislature to
[***50] fix prioes for the use
of their
property, and their
services in connection with it, refused to comply with the act by taking out
the license and giving the bond required,
[*138] but continued to carry
on the business and to
charge for receiving and storing grain such prices as they had been accustomed
to charge, and as had been agreed upon between them and the
owners of the grain.
For thus transacting their business without procuring a license, as required by
the act, they were prosecuted and fined, and the judgment against
them was affirmed by
the Supreme Court of the State.
The question
presented, therefore, is one of the greatest importance, -- whether it is
within the competency of a State to fix the compensation which an individual
may
receive for the use of
his own property in his private business, and for his services in connection
with it.
The declaration of the
Constitution of 1870, that provate buildings used for private purposes shall be
deemed public institutions, does not make them so. The receipt
and storage of grain
in a building erected by private means for that purpose does not constitute the
building a public warehouse. There is no magic in the language,
[***51]
though used by a constitutional convention, which can change a private
business into a public one, or alter the character of the building in which the
business
is transacted. A
tailor's or a shoemaker's shop would stil retain its private character, even
though the assembled wisdom of the State should declare, by organic act or
legislative ordinance,
that such a place was a public workshop, and that the workmen were public
tailors or public shoemakers. One might as well attempt to change
the nature of colors,
by giving them a new designation. The defendants were no more public
warehousemen, as justly observed by counsel, than the merchant who sells
his merchandise to the
public is a public [**89] merchant, or the blacksmith who shoes horses
for the public is a public blacksmith; and it was a strange notion that by
calling them so they
would be brought under legislative control.
The Supreme Court of
the State -- divided, it is true, by three to two of its members -- has held
that this legislation was a legitimate exercise of State authority over
private business; and
the Supreme Court of the United States, two only of its members dissenting, has
decided that there is nothing
[***52] in the Constitution of
the
United States, or its
recent amendments, which impugns its validity. It is, therefore, with
diffidence I presume to question the soundness of the decision.
[*139]
The validity of the legislation was, among other grounds, assailed in
the State court as being in conflict with that provision of the State
Constitution which
declares that no
person shall be deprived of life, liberty, or property without due process of
law, and with that provision of the Fourteenth Amendment of the Federal
Constitution which
imposes a similar restriction upon the action of the State. The State court
held, in substance, that the constitutional provision was not violated so long
as the owner was not
deprived of the title and possession of his property; and that it did not deny
to the legislature the power to make all needful rules and regulations
respecting the use and
enjoyment of the property, referring, in support of the position, to instances
of its action in prescribing the interest on money, in establishing and
regulating public
ferries and public, mills, and fixing the compensation in the shape of tolls,
and in delegating power to municipal bodies to regulate the [***53]
charges
of hackmen and
draymen, and the weight and price of bread. In this court the legislation was
also assailed on the same ground, our jurisdiction arising upon the clause
of the Fourteenth
Amendment, ordaining that no State shall deprive any person of life, liberty,
or property without due process of law. But it would seem from it opinion
that the court holds
that property loses something of its private character when employed in such a
way as to be generally useful. The doctrine declared is that property
"becomes clothed
with a public interest when used in a manner to make it of public consequence,
and affect the community at large;" and from such clothing the right of
the legislature is
duduced to control the use of the property, and to determine the compensation
which the owner may receive for it. When Sir Matthew Hale, and the
sages of the law in
his day, spoke of property as affected by a public interest, and ceasing from
that cause to be juris privati solely, that is, ceasing to be held merely in
private right, they
referred to property dedicated by the owner to public uses, or to property the
use of which was granted by the government, or in connection with
which [***54]
special privileges were conferred. Unless the property was thus
dedicated, or some right bestowed by the government was hepd with the property,
either by specific
grant or by prescription of so long a time as
[*140] to imply a grant
originally, the property was not affected by any public interest so as to be
taken
out of the category of
property held in private right. But it is not in any such sense that the terms
"clothing property with a public interest" are used in this case.
From the
nature of the business
under consideration -- the storage of grain -- which, in any sense in which the
words can be used, is a private business, in which the public are
interested only as
they are interested in the storage of other products of the soil, or in
articles of manufacture, it is clear that the court intended to declare that,
whenever
one devotes his
property to a business which is useful to the public, -- "affects the
community at large," -- the legislature can regulate the compensation
which the owner
may receive for its
use, and for his own services in connection with it. "When,
therefore," says the court, "one devotes his property to a use in
which the public has an
interest, [***55]
he, in effect, grants to the public an interest in that use, and must
submit to be controlled by the public for the common good, to the extent of the
interest he has thus
created. He may withdraw his grant by discontinuing the use; but, so long as he
mamtains the use, he must submit to the control." The building used
by the defendants was
for the storage of grain: in such storage, says the court, the public has an
interest; therefore the defendants, by devoting the building to that
storage, have granted
the public an interest in that use, and must submit to have their compensation
regulated by the legislature.
If this be sound law,
if there be no protection, either in the principles upon which our republican
government is founded, or in the prohibitions of the Constitution against
such invasion of
private rights, all property and all business in the State are held at the
mercy of a majority of its legislature. The public has no greater interest in
the use
of buildings for the
storage of grain than it has in the use of buildings for the residences of
families, nor, indeed, any thing like so great an interest; and, according to
the
doctrine announced,
the legislature may fix the
[***56] rent of all tenements
used for residences, without reference to the cost of their erection. If the
owner does not
like the rates prescribed,
he may cease renting his houses. He has granted to the public, says the court,
an interest in the use of the
[*141] buildings, and "he
may
withdraw his grant by
discontinuing the use; but, so long as he maintains the use, he must submit to
the control." The public is interested in the manufacture of cotton,
woollen, and silken
fabrics, in the construction of machinery, in the printing and publication of
books and periodicals, and in the making of utensils of every variety,
useful and ornamental;
indeed, there is hardly an enterprise or business engaging the attention and
labor of any considerable portion of the community, in which the
public has not an
interest in the sense in which that term is used by the court in its opinion;
and the doctrine which allows the legislature to interfere with and regulate
the
charges which the
owners of property thus, employed shall make for its use, that is, the rates at
which all these different kinds of business shall be carried on, has never
before been asserted,
so far as I am aware, by any judicial
[***57] tribunal in the United
States.
The doctrine of the
State court, that no one is deprived of his property, within the meaning of the
constitutional inhibition, so long as he retains its title and possession,
and the doctrine of
this court, that, whenever one's property is
[**90] used in such a manner as
to affect the community at large, it becomes by that fact clothed with a
public interest, and
ceases to be juris privati only, appear to me to destroy, for all useful
purposes, the efficacy of the constitutional guaranty. All that is beneficial
in
property arises from
its use, and the fruits of that use; and whatever deprives a person of them
deprives him of all that is desirable or valuable in the title and possession.
If the constitutional
guaranty extends no further than to prevent a deprivation of title and
possession, and allows a deprivation of use, and the fruits of that use, it
does
not merit the
encomiums it has received. Unless I have misread the history of the provision
now incorporated into all our State constitutions, and by the Fifth and
Fourteenth Amendments
into our Federal Constitution, and have misunderstood the interpretation it has
received, it is not [***58] thus limited in its scope, and thus
impotent for good. It
has a much more extended operation than either court, State, or Federal has
given to it. The provision, it is to be observed, places property under
the same protection as
life and liberty. Except by due process of law, no State can [*142]
deprive any person of either. The provision has been supposed to secure
to
every individual the
essential conditions for the pursuit of happiness; and for that reason has not
been heretofore, and should never be, construed in any narrow or
restricted sense.
No State "shall
deprive any person of life, liberty, or property without due process of
law," says the Fourteenth Amendment to the Constitution. By the term
"life," as
here used, something
more is meant than mere animal existence. The inhibition against its
deprivation extends to all those limbs and faculties by which life is enjoyed.
The provision equally
prohibits the mutilation of the body by the amputation of an arm or leg, or the
putting out of an eye, or the destruction of any other organ of the
body through which the
soul communicates with the outer world. The deprivation not only of life, but
of whatever God has given [***59] to every one with life, for its
growth and enjoyment,
is prohibited by the provision in question, if its efficacy be not frittered
away by judicial decision.
By the term
"liberty," as used in the provision, something more is meant than
mere freedom from physical restraint or the bounds of a prison. It means
freedom to go
where one may choose,
and to act in such manner, not inconsistent with the equal rights of others, as
his judgment may dictate for the promotion of his happiness; that
is, to pursue such
callings and avocations as may be most suitable to develop his capacities, and
give to them their highest enjoyment.
The same liberal
construction which is required for the protection of life and liberty, in all
particulars in which life and liberty are of any value, should be applied to
the
protection of private
property. If the legislature of a State, under pretence of providing for the
public good, or for any other reason, can determine, against the consent
of the owner, the uses
to which private property shall be devoted, or the prices which the owner shall
receive for its uses, it can deprive him of the property as
completely as by a
special act for its confiscation or destruction. [***60] If, for instance,
the owner is prohibited from using his building for the purposes for which it
was designed, it is of
little consequence that he is permitted to retain the [*143] title and
possession; or, if he is compelled to take as compensation for its use less
than
the expenses to which
he is subjected by its ownership, he is, for all practical purposes, deprived
of the property, as effectually as if the legislature had ordered his
forcible
dispossession. If it be admitted that the legislature has any control over the
compensation, the extent of that compensation becomes a mere matter of
legislative
discretion. The amount
fixed will operate as a partial destruction of the value of the property, if it
fall below the amount which the owner would obtain by contract, and,
practically, as a
complete destruction, if it be less than the cost of retaining its possession.
There is, indeed, no protection of any value under the constitutional
provision,
which does not extend
to the use and income of the property, as well as to its title and possession.
This court has
heretofore held in many instances that a constitutional provision intended for
the protection of rights of private
[***61] property should be
liberally
construed. It has so
held in the numerous cases where it has been called upon to give effect to the
provision prohibiting the States from legislation impairing the
obligation of
contracts; the provision being construed to secure from direct attack not only
the contract itself, but all the essential incidents which give it value and
enable
its owner to enforce
it. Thus, in Bronson v. Kinzie, reported in the 1st of Howard, it was held that
an act of the legislature of Illinois, giving to a mortgagor twelve
months within which to
redeem his mortgaged property from a judicial sale, and prohibiting its sale
for less than two-thirds of its appraised value, was void as applied to
mortgages executed
prior to its passage. It was contended, in support of the act, that it affected
only the remedy of the mortgagee, and did not impair the contract; but
the court replied that
there was no substantial difference between a retrospective law declaring a
particular contract to be abrogated and void, and one which took
away all remedy to
enforce it, or incumbered the remedy with conditions that rendered it useless
or impracticable to pursue it. And, referring
[***62] to the
constitutional
provision, the court said, speaking through Mr. Chief Justice Taney, that
"it would be unjust to the memory of the distinguished men who framed it,
to
suppose that it was
designed to protect a mere barren and
[*144] abstract right, without
any practical operation upon the business of life. It was undoubtedly adopted
as a part of the
Constitution for a great and useful purpose. It was to maintain the integrity
of contracts, and to secure their faithful execution throughout this Union, by
placing them under the
protection of the Constitution of the United States. And it would but ill
become this court, under any circumstances, to depart from the plain
meaning of the words
used, and to sanction a distinction between the right and the remedy, which
would render this provision illusive and nugatory, mere words of
from, affording no
protection and producing no practical result."
And in Pumpelly v.
Green Bay Company, 13 Wall. 177, the language of the court is equally emphatic.
That case arose in Wisconsin, the constitution of [**91]
which declares, like
the constitutions of nearly all the States, that private property shall not be
taken for public [***63] use without just compensation; and this
court
held that the flooding
of one's land by a dam constructed across a river under a law of the State was
a taking within the prohibition, and required compensation to be
made to the owner of
the land thus flooded. The court, speaking through Mr. Justice Miller, said: --
"It would be a
very curious and unsatisfactory result, if, in construing a provision of
constitutional law, always understood to have been adopted for protection and
security to the rights
of the individual as against the government, and which has received the
commendation of jurists, statesmen, and commentators, as placing the just
principles of the
common law on that subject beyond the power of ordinary legislation to change
or control them, it shall be held that, if the government refrains from the
absolute conversion of
real property to the uses of the public, it can destroy its value entirely, can
inflict irreparable and permanent injury to any extent, can, in effect,
subject it to total
destruction without making any compensation, because, in the narrowest sense of
the word, it is not taken for the public use. Such a construction
would pervert the
constitutional [***64] provision into a restriction on the rights
of the citizen, as those rights stood at the common law, instead of the
government,
and make it an
authority for invasion of private right under the pretext of the public good,
which had no warrant in the laws or practices of our ancestors."
[*145]
The views expressed in these citations, applied to this case, would
render the constitutional provision invoked by the defendants effectual to
protect them in the
uses, income, and
revenues of their property, as well as in its title and possession. The
construction actually given by the State court and by this court makes the
provision, in the
language of Taney, a protection to "a mere barren and abstract right,
without any practical operation upon the business of life," and renders it
"illusive
and nugatory, mere
words of form, affording no protection and producing no practical result."
The power of the State
over the property of the citizen under the constitutional guaranty is well
defined. The State may take his property for public uses, upon just
compensation being
made therefor. It may take a portion of his property by way of taxation for the
support of the government. It may control
[***65] the use and
possession of his
proerty, so far as may be necessary for the protection of the rights of others,
and to secure to them the equal use and enjoyment of their property. The
doctrine that each one
must so use his own as not to injure his neighbor -- sic utere tuo ut alienum
non loedas -- is the rule by which every member of society must
possess and enjoy his
property; and all legislation essential to secure this common and equal
enjoyment is a legitimate exercise of State authority. Except in cases where
property may be
destroyed to arrest a conflagration or the ravages of pestilence, or be taken
under the pressure of an immediate and overwhelming necessity to
prevent a public
calamity, the power of the State over the property of the citizen does not
extend beyond such limits.
It is true that the
legislation which secures to all protection in their rights, and the equal use
and enjoyment of their property, embraces an almost infinite variety of
subjects. Whatever
affects the peace, good order, morals, and health of the community, comes
within its scope; and every one must use and enjoy his property subject
to the restrictions
which such legislation imposes. What
[***66] is termed the police
power of the State, which, from the language often used respecting it, one
would
suppose to be an
undefined and irresponsible element in government, can only interfere with the
conduct of individuals in their intercourse with each other, and in the
use of their property,
so far [*146] as may be required to secure these objects. The compensation
which the owners of property, not having any special rights or
privileges from the
government in connection with it, may demand for its use, or for their own
services in union with it, forms no element of consideration in prescribing
regulations for that
purpose. If one construct a building in a city, the State, or the municipality
exercision a delegated power from the State, may require its walls to be
of sufficient
thickness for the uses intended; it may forbid the employment of inflammable
materials in its construction, so as not to endanger the safety of his
neighbors;
if designed as a
theatre, church, or public hall, it may prescribe ample means of egress, so as
to afford facility for escape in case of accident; it may forbid the storage in
it of powder,
nitro-glycerine, or other explosive material; it may require [***67]
its occupants daily to remove decayed vegetable and animal matter, which
would
otherwise accumulate
and engender disease; it may exclude from it all occupations and business calculated
to disturb the neighborhood or infect the air. Indeed, there is
no end of regulations
with respect to the use of property which may not be legitimately prescribed,
having for their object the peace, good order, safety, and health of
the community, thus
securing to all the equal enjoyment of their property; but in establishing
these regulations it is evident that compensation to the owner for the use of
his property, or for
his services in union with it, is not a matter of any importance: whether it be
one sum or another does not affect the regulation, either in respect to its
utility or mode of
enforcement. One may go, in like manner, through the whole round of regulations
authorized by legislation, State or municipal, under what is termed
the police power, and
in no instance will he find that the compensation of the owner for the use of
his property has any influence in establishing them. It is only where
some right or
privilege is conferred by the government or municipality upon the owner,
which [***68] he can use in connection with his property, or by means of
which the use of his
property is rendered more valuable to him, or he thereby enjoys an advantage
over others, that the compensation to be received by him becomes a
legitimate matter of
regulation. Submission to the regulation of compensation in such cases is an
implied condition [*147] of the grant, and the State, in exercising
its
power of prescribing
the compensation, only determines the conditions upon which its concession
shall be enjoyed. When the privilege ends, the power of regulation
ceases.
Jurists and writers on
public law find authority [**92] for the exercise of this police power of the
State and the numerous regulations which it prescribes in the doctrine
already stated, that
every one must use and enjoy his property consistently with the rights of
others, and the equal use and enjoyment by them of their property. "The
police power of the
State," says the Supreme Court of Vermont, "extends to the protection
of the lives, limbs, health, comfort, and quiet of all persons, and the
protection of all
property in the State. According to the maxim, sic utere tuo ut alienum non
loedas, which, being [***69] of universal application, it must, of
course, be within the
range of legislative action to define the mode and manner in which every one
may so use his own as not to injure others." Thorpe v.
Rutland &c
Burlington Railroad Co., 27 Vt. 149. "We think it a settled principle
growing out of the nature of well-ordered civil society," says the Supreme
Court of
Massachusetts,
"that every holder of property, however abosolute and unqualified may be
his title, holds it under the implied liability that his use of it shall not be
injurious to the equal
enjoyment of others having an equal right to the enjoyment of their property,
nor injurious to the rights of the community."
Commonwealth v. Alger,
7 Cush. 84. In his Commentaries, after speaking of the protection afforded by
the Constitution to private property, Chancellor Kent says: --
"But though
property be thus protected, it is still to be understood that the law-giver has
the right to prescribe the mode and manner of using it, so far as may be
necessary to prevent
the abuse of the right, to the injury or annoyance of others, or of the public.
The government may, by general regulations, interdict such
uses of property [***70]
as would create nuisances and become dangerous to the lives, or health,
or peace, or comfort of the citizens. Unwholesome trades,
slaughter-houses,
operations offensive to the senses, the deposit of powder, the application of
steam-power to propel cars, the building with combustible materials, and
the burial of the
dead, may all be interdicted by law, in the midst of dense masses of
population, [*148] on the general and rational principle that
every person
ought so to use his
property as not to injure his neighbors, and that private interests must be
made subservient to the general interests of the community. 2
Kent, 340.
The Italics in these
citations are mine. The citations show what I have already stated to be the
case, that the regulations which the State, in the exercise of its police
power, authorizes with
respect to the use of property are entirely independent of any question of
compensation for such use, or for the services of the owner in
connection with it.
There is nothing in
the character of the business of the defendants as warehousemen which called
for the interference complained of in this case. Their buildings are not
nuisances; their
occupation of receiving [***71] and storing grain infringes upon no rights
of others, disturbs no neighborhood, infects not the air, and in no respect
prevents others from
using and enjoying their property as to them may seem best. The legislation in
question is nothing less than a bold assertion of absolute power by
the State to control
at its discretion the property and business of the citizen, and fix the
compensation he shall receive.The will of the legislature is made the condition
upon which the owner
shall receive the fruits of his property and the just reward of his labor,
industry, and enterprise. "That government," says Story, "can
scarcely be
deemed to be free
where the rights of property are left solely dependent upon the will of a
legislative body without any restraint. The fundamental maxims of a free
government seem to
require that the rights of personal liberty and private property should be held
sacred." Wilkeson v. Leland, 2 Pet. 657. The decision of the court in
this case gives
unrestrained license to legislative will.
The several instances
mentioned by counsel in the argument, and by the court in its opinion, in which
legislation has fixed the compensation which parties may receive
[***72]
for the use of their property and services, do not militate against the
views I have expressed of the power of the State over the property of the
citizen. They
were mostly cases of
public ferries, bridges, and turnpikes, of wharfingers, hackmen, and draymen,
and of interest on money. In all these cases, except that of interest
on money, which I
shall presently notice, there was some special
[*149] privilege granted by the
State or municipality; and no one, I suppose, has ever contended that
the State had not a
right to prescribe the conditions upon which such privilege should be enjoyed.
The State in such cases exercises no greater right than an individual
may exercise over the
use of his own property when leased or loaned to others. The conditions upon
which the privilege shall be enjoyed being stated or implied in the
legislation
authorizing its grant, no right is, of course, impaired by their enforcement.
The recipient of the privilege, in effect, stipulates to comply with the
conditions. It
matters not how
limited the privilege conferred, its acceptance implies an assent to the
regulation of its use and the compensation for it. The privilege which the
hackman
and drayman [***73]
have to the use of stands on the public streets, not allowed to the
ordinary coachman or laborer with teams, constitutes a sufficient warrant for
the regulation of
their fares. In the case of the warehousemen of Chicago, no right or privilege
is conferred by the government upon them; and hence no assent of theirs
can be alleged to
justify any interference with their charges for the use of their property.
The quotations from
the writings of Sir Matthew Hale, so far from supporting the positions of the
court, do not recognize the interference of the government, even to the
extent which I have
admitted to be legitimate. They state merely that the franchise of a public
ferry belongs to the king, and cannot be used by the subject except by
license from him, or
prescription time out of mind; and that when the subject has a public wharf by
license from the king, or from having dedicated his private wharf to
the public, as in the
case of a street opened by him through his own land, he must allow the use of
the wharf for reasonable and moderate charges. Thus, in the first
quotation which is
taken from his treatise De Jure Maris, Hale says that the king has "a
right of franchise or [***74] privilege, that no man may set up a common
ferry
for all passengers
without a prescription time out of mind or a charter from the king. He may make
a ferry for his own use or the use of his family, but not for the
[**93]
common use of all the king's subjects passing that way; because it doth
in consequent tend to a common charge, and is become a thing of public interest
and
use, and every man for
his passage [*150] pays a toll, which is a common charge, and
every ferry ought to be under a public regulation, viz., that it give
attendance at
due times, keep a boat
in due order, and take but reasonable toll; for if he fail in these he is
finable." Of course, one who obtains a license from the king to establish
a
public ferry, at which
"every man for his passage pays a toll," must take it on condition
that he charge only reasonable toll, and, indeed, subject to such regulations
as
the king may
prescribe.
In the second
quotation, which is taken from his treatise De Protibus Maris, Hale says: --
"A man, for his
own private advantage, may, in a port or town, set up a wharf or crane, and may
take what rates he and his customers can agree for cranage, wharfage,
housellage, [***75]
pesage; for he doth no more than is lawful for any man to do, viz.,
makes the most of his own. If the king or subject have a public wharf, unto
which all persons that
come to that port must come and unlade or lade their goods as for the purpose,
because they are the wharves only licensed by the king, or
because there is no
other wharf in that port, as it may fall out where a port is newly erected, in
that case there cannot be taken arbitrary and excessive duties for
cranage, wharfage,
pesage, &c.; neither can they be enhanced to an immoderate rate, but the
duties must be reasonable and moderate, though settled by the king's
license or charter.
For now the wharf and crane and other conveniences are affected with a public
interest, and they cease to be juris privati only; as if a man set out a
street in new building
on his own land, it is now no longer bare private interest, but is affected by
the public interest."
The purport of which
is, that if one have a public wharf, by license from the government or his own
dedication, he must exact only reasonable compensation for its use.
By its dedication to
public use, a wharf is as much brought under the common-law rule of
subjection [***76] to reasonable charges as it would be if
originally
established or
licensed by the crown. All property dedicated to public use by an individual
owner, as in the case of land for a park or street, falls at once, by force of
the dedication, under
the law governing property appropriated by the government for similar purposes.
I do not doubt the
justice of the encomiums passed upon Sir
[*151] Matthew Hale as a learned
jurist of his day; but I am unable to perceive the pertinency of his
observations upon
public ferries and public wharves, found in his treatises on "The Rights
of the Sea" and on "The Ports of the Sea," to the questions
presented by the
warehousing law of
Illinois, undertaking to regulate the compensation received by the owners of
private property, when that property is used for private purposes.
The principal
authority cited in support of the ruling of the court is that of Alnutt v.
Inglis, decided by the King's Bench, and reported in 12 East. But that case, so
far
from sustaining the
ruling, establishes, in my judgment, the doctrine that every one has a right to
charge for his property, or for its use, whatever he pleases, unless he
enjoys in
connection [***77] with it some right or privilege from the
government not accorded to others; and even then it only decides what is above
stated in the
quotations from Sir
Matthew Hale, that he must submit, so long as he retains the right or
privilege, to reasonable rates. In that case, the London Deck Company, under
certain acts of
Parliament, possessed the exclusive right of receiving imported goods into
their warehouses before the duties were paid; and the question was whether
the company was bound
to receive them for a reasonable reward, or whether it could arbitrarily fix
its compensation. In deciding the case, the Chief Justice, Lord
Ellenborough, said: --
"There is no
doubt that the general principle is favored, both in law and justice, that
every man may fix what price he pleases upon his own property, or the use of
it; but
if, for a particular
purpose, the public have a right to resort to his premises and make use of
them, and he have a monopoly in them for that purpose, if he will take the
benefit of that
monopoly, he must, as an equivalent, perform the duty attached to it on
reasonable terms."
And, coming to the
conclusion that the company's warehouses were invested with "the
monopoly [***78] of a public privilege," he held that by
law the company must
confine itself to take
reasonable rates; and added, that if the crown should thereafter think it
advisable to extend the privilege more generally to other persons and
places, so that the
public would not be restrained from exercising a choice of warehouses for the
purpose, the company might be enfranchised from the restriction
which [*152]
attached to a monopoly; but, so long as its warehouses were the only
places which could be resorted to for that purpose, the company was bound to
let
the trade have the use
of them for a reasonable hire and reward. The other judges of the court placed
their concurrence in the decision upon the ground that the
company possessed a
legal monopoly of the business, having the only warehouses where goods imported
could be lawfully received without previous payment of the
duties. From this case
it appears that it is only where some privilege in the bestowal of the government
is enjoyed in connection with the property, that it is affected with
a public interest in
any proper sense of the terms. It is the public privilege conferred with the
use of the property which creates the public interest [***79] in it.
In the case decided by
the Supreme Court of Alabama, where a power granted to the city of Mobile to
license bakers, and to regulate the weight and price of bread,
was sustained so far
as regulating the weight of the bread was concerned, no question was made as to
the right to regulate the price. 3 Ala. 137. There is no doubt of
the competency of the
State to prescribe the weight of a loaf of bread, as it may declare what weight
shall constitute a pound or a ton. But I deny the power of any
legislature under our
government to fix the price which one shall receive for his property of any
kind. If the power can be exercised as to one article, it may as to all
articles, and the
prices of every thing, from a calico gown to a city mansion, may be the subject
of legislative direction.
Other instances of a
similar character may, no doubt, be cited of attempted legislative interference
with the rights of property. The act of Congress of 1820, mentioned
by the court, is one
of them. There Congress undertook to confer upon the city of Washington power
to regulate the rates of wharfage at private wharves, and the fees
for sweeping chimneys.
Until some authoritative adjudication
[***80] is had upon these and
similar provisions, I must adhere, notwithstanding the legislation, to my
opinion, that those
who own property have the right to fix the compensation at which they will
allow its use, and that those who control services have a right to fix the
compensation at which
they will be rendered. The chimney-sweeps may, I think, safely claim all the
compensation which [*153] they can obtain by bargain for their
work. In the absence
of any contract for property or services, the law allows only a reasonable
price or compensation; but what is a reasonable price in any case will
depend upon a variety
of considerations, and is not a matter for legislative determination.
The practice of
regulating by legislation the interest receivable for the use of money, when
considered with reference to its origin, is only the assertion of a right of
the
government to control
the extent to which a privilege granted by it may be exercised and enjoyed. By
the ancient common law it was unlawful to take any money for the
use of money: all who
did so were called usurers, a term of great reproach, and were exposed to the
censure of the church; and if, after the death of a person, it
[***81]
was discovered that he had been a usurer whilst living, his chattels
were forfeited to the king, and his lands escheated to the lord of the fee. No
action could
be maintained on any
promise to pay for the use of money, because of the unlawfulness of the
contract. Whilst the common law thus condemned all usury, Parliament
interfered, and made
it lawful to take a limited amount of interest. It was not upon the theory that
the legislature could arbitrarily fix the compensation which one could
receive for the use of
property, which, by the general law, was the subject of hire for compensation,
that Parliament acted, but in order to confer a privilege which the
common law denied. The
reasons which led to this legislation originally have long since ceased to
exist; and if the legislation is still persisted in, it is because a long
acquiescence in the
exercise of a power, especially when it was rightfully assumed in the first instance,
is generally received as sufficient evidence of its continued
lawfulness. 10 Bac.
Abr. 264. n1
n1 The statute of 13
Eliz. c. 8, which allows ten per cent interest, recites "that all usury,
being forbidden by the law of God, is sin, and detestable;" and the
statute of 21
James the First,
reducing the rate to eight per cent, provided that nothing in the law should be
"construed to allow the practice of usury in point of religion or
conscience," -- a
clause introduced, it is said, to satisfy the bishops, who would not vote for
the bill without it. [***82]
There were also
recognized in England, by the ancient common law, certain privileges as
belonging to the lord of the manor, which grew out of the state of the country,
the condition of the
people, and the relation existing between him and [*154] his tenants under
the feudal system. Among these was the right of the lord to compel all
the tenants within his
manor to grind their corn at his mill. No one, therefore, could set up a mill
except by his license, or by the license of the crown, unless he claimed
the right by
prescription, which presupposed a grant from the lord or crown, and, of course,
with such license went the right to regulate the tolls to be
received.Woolrych on
the Law of Waters, c. 6, of Mills. Hence originated the doctrine which at one
time obtained generally in this country, that there could be no mill
to grind corn for the
public, without a grant or license from the public authorities. It is still, I
believe, asserted in some States. This doctrine being recognized, all the rest
followed. The right to
control the toll accompanied the right to control the establishment of the
mill.
It requires no comment
to point out the radical differences between the [***83] cases of public
mills and interest on money, and that of the warehouses in Chicago.
No prerogative or
privilege of the crown to establish warehouses was ever asserted at the common
law. The business of a warehouseman was, at common law, a
private business, and
is so in its nature. It has no special privileges connected with it, nor did
the law ever extend to it any greater protection than it extended to all other
private business.No
reason can be assigned to justify legislation interfering with the legitimate
profits of that business, that would not equally justify an intermeddling with
the business of every
man in the community, so soon, at least, as his business became generally
useful.
I am of opinion that
the judgment of the Supreme Court of Illinois should be reversed.
MR. JUSTICE STRONG.
When the judgment in this case was announced by direction of a majority of the
court, it was well known by all my brethren that I did not
concur in it. It had
been my purpose to prepare a dissenting opinion, but I found no time for the
preparation, and I was reluctant to dissent in such a case without stating
my reasons. Mr. Justice Field has now stated them as fully as I can, and I [***84] concur in what he has said.