Professional Documents
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Crossman v. Lurman, 192 U.S. 189 (1904)
Crossman v. Lurman, 192 U.S. 189 (1904)
189
24 S.Ct. 234
48 L.Ed. 401
Messrs. Frederic R. Kellogg, Arthur J. Baldwin, and Dill & Baldwin for
plaintiffs in error.
[Argument of Counsel from pages 190-192 intentionally omitted]
Mr. Charles Stewart Davison for defendants in error.
Mr. Justice White delivered the opinion of the court:
With these provisions in force, in July, 1894, the firm of Crossman & Brothers,
hereafter referred to as the sellers, residents of New York city, by contract
made in New York, sold to the firm of Theodore G. Lurman & Company,
hereafter referred to as the buyers, residents of Baltimore, five hundred bags of
Rio coffee, one half the bags to be No. 8 grade and the other half No. 9 grade.
It was stipulated that the coffee was to be shipped from Rio Janeiro to New
York city by a designated steamer, the coffee to be sound or to be made sound
by the sellers. The grades 8 and 9 referred to in the memorandum of sale were
standard types, bearing those numbers, established by the Coffee Exchange of
the city of New York, and it was agreed that the coffee was to be of the average
of such types, and differences arising on the subject were to be determined by a
'grader,' to be selected by each of the parties, the two to select a third in the
event of a disagreement, his decision to be conclusive. It was stipulated that on
the arrival of the steamer and the storage of the coffee in New York the buyers
were to have the advantage of the first month's storage and fire insurance free
of expense.
4
In due time the named steamer reached the port of New York, and the five
hundred bags of coffee were stored and delivery tendered in New York city to
the buyers. Some of the coffee was accepted and the remainder was rejected,
on the ground that it was adulterated, because it had been artificially colored by
coating the beans with a yellow wash. Without going into the details of what
transpired between the parties as a result of the refusal to accept the coffee, it
suffices, for this case, to say that ultimately the graders provided for in the
contract were named, and on their disagreement a third was selected, who
decided that, although the coffee had been coated with the wash, its average
quality was yet equal to the specified types of the Coffee Exchange referred to
in the contract. The buyers refused to abide by this finding, and to accept
delivery and pay for the adulterated coffee. The sellers then disposed of the
coffee for account of the buyers, and commenced this suit to recover the
difference between the amount produced by the alleged sale and the contract
price. During the course of the litigation two trials were had, and the cause was
twice passed on by the appellate division of the supreme court in and for the
first judicial department. On the first hearing in the supreme court it was held,
in accord with a decision of the court of appeals of the state of New York,
rendered in a collateral controversy which grew out of the refusal to accept the
coffee (Re Lurman, 149 N. Y. 588, 44 N. E. 1125), that if the coffee was
adulterated, within the statute of the state of New York, the buyers were not
bound to accept, despite the finding of the grader that it conformed to the types
of the Coffee Exchange, referred to in the contract. Finally, all incidental
questions being eliminated, the cause was tried on the distinct issue whether the
coffee was adulterated within the provisions of the statute. There was a verdict
and judgment for the buyers, which was affirmed by the appellate division of
the supreme court in and for the first judicial department. The cause having
been then taken to the court of appeals of the state of New York, the court
affirmed the judgment of the supreme court, and remitted the record to that
Concerning the facts of the case the court of appeals said (p. 335, N. E. p.
1100).
'The coffee tendered by the plaintiffs, which was rejected, was of a low grade,
containing many poor, withered, and black beans. It, confessedly, was colored
and the beans coated with a yellowish substance. It is not contended that the
coloring matter improved the taste or added to the value of the coffee. It is
claimed that the only purpose of the coloring was to hide the character of the
poor beans and to make them appear of the same character as the good coffee.
The jury has found by its verdict that it was so colored as to conceal the
damaged portions, or made it to appear better than it really was, or of greater
value to the ordinary, untrained observer. In other words, that it was adulterated
for the purposes of fraud and deception.'
Applying the provisions of the health laws of the state of New York concerning
the adulteration of food products already referred to, it was decided that the
court below had correctly held that there was no obligation on the part of the
buyer to take delivery and pay for the coffee if fraudulently colored in violation
of the prohibitions of the statute. Coming to consider the contention of the
sellers, that the provision of the law of the state in question was repugnant to
the commerce clause of the Constitution of the United States, the court of
appeals said (p. 332, N. E. p. 1098):
'The states have no power to regulate commerce with foreign countries or with
each other. This power has been delegated to the Congress of the United States,
and that body can, by law, determine what shall or shall not be permitted to be
imported. With the right of importation follows the right of sale in original
packages, and therefore the states cannot prohibit the sale of articles of
commerce within their borders. The states cannot, under the guise of
inspection, or under their reserved police powers, prohibit the importation into
their jurisdictions of sound meat, under the pretense that it may be damaged or
decayed, or Texas cattle for fear they may be diseased, or spirituous or malt
liquors for fear that they may intoxicate, or oleomargarine for fear it may be
adulterated. Hannibal & St. J. R. Co. v. Husen, 95 U. S. 465, 24 L. ed. 527;
Bowman v. Chicago & N. W. R. Co. 125 U. S. 465, 31 L. ed. 700, 1 Inters.
Com. Rep. 823, 8 Sup. Ct. Rep. 689, 1062; Leisy v. Hardin, 135 U. S. 100, 34
L. ed. 128, 3 Inters. Com. Rep. 36, 10 Sup. Ct. Rep. 681; Schollenberger v.
Pennsylvania, 171 U. S. 1, 43 L. ed. 49, 18 Sup. Ct. Rep. 757.
Having thus fully conceded the plenary operation of the Constitution of the
United States upon interstate and foreign commerce, the court proceeded to
decide that the statute of the state of New York which it upheld was no
repugnant to the commerce clause of the Constitution, because the state, in its
enactment, but exerted its reserved police power to legislate for the protection
of the health and safety of the community, and to provide against deception or
fraud. In support of this theory the court cited from the decisions of this court,
to which it had referred, as showing the general rule, and additionally fortified
its conclusion by reference to, and citations from, the opinion of this court in
Plumley v. Massachusetts, 155 U. S. 461, 39 L. ed. 223, 5 Inters. Com. Rep.
590, 15 Sup. Ct. Rep. 154.
10
All but three of the many propositions embraced in the assignment of errors and
urged at bar rest on the contention that the court of appeals misconceived the
extent of the police power of the state, and therefore erroneously decided that
the law of the state of New York which was applied to the case was not
repugnant to the commerce clause of the Constitution of the United States. We
shall not at any length undertake to review the argument made at bar to sustain
this proposition, since its unsoundness will be more fully demonstrated by a
mere reference to the previous decisions of this court, upon which the court
below based its conclusions. Indeed, every contention here urged to show that
the law of New York is repugnant to the Constitution of the United States was
fully and expressly considered and negatived by the decision of this court in
Plumley v. Massachusetts, 155 U. S. 461, 39 L. ed. 223, 5 Inters. Com. Rep.
590, 15 Sup. Ct. Rep. 154. In that case a law of the state of Massachusetts
forbidding the sale of oleomargarine which was artifically colored was applied
to a sale in Massachusetts of an original package of that article which had been
manufactured in, and shipped from, the state of Illinois. In the course of a full
review of the previous cases relating to the subject it was said (p. 472, L. ed. p.
227, Inters. Com. Rep. p. 600, Sup. Ct. Rep. p. 158):
11
'If there be any subject over which it would seem the states ought to have
plenary control, and the power to legislate in respect to which it ought not to be
supposed was intended to be surrendered to the general government, it is the
protection of the people against fraud and deception in the sale of food
products. Such legislation may, indeed, indirectly or incidentally, affect trade in
such products transported from one state to another state. But that circumstance
does not show that laws of the character alluded to are inconsistent with the
power of Congress to regulate commerce among the states. For, as said by this
court in Sherlock v. Alling, 93 U. S. 99, 103, 23 L. ed. 819, 820: 'In conferring
upon Congress the regulation of commerce, it was never intended to cut the
states off from legislating on all subjects relating to the health, life, and safety
of their citizens, though the legislation might indirectly affect the commerce of
the country. Legislation, in a great variety of ways, may affect commerce and
persons engaged in it without constituting a regulation of it within the meaning
of the Constitution. . . . And it may be said, generally, that the legislation of a
state, not directed against commerce or any of its regulations, but relating to the
rights, duties, and liabilities of citizens, and only indirectly and remotely
affecting the operations of commerce, is of obligatory force upon citizens
within its territorial jurisdiction, whether on land or water, or engaged in
commerce, foreign or interstate, or in any other pursuit."
12
Again, it was said (p. 478, L. ed. p. 229, Inters. Com. Rep. p. 606, Sup. Ct. Rep.
p. 160):
13
'And yet it is supposed that the owners of a compound which has been put in a
condition to cheat the public into believing that it is a particular article of food
in daily use and eagerly sought by people in every condition of life are
protected by the Constitution in making a sale of it against the will of the state
in which it is offered for sale, because of the circumstance that it is an original
package, and has become a subject of ordinary traffic. We are unwilling to
accept this view. We are of opinion that it is within the power of a state to
exclude from its markets any compound manufactured in another state, which
has been artificially colored or adulterated so as to cause it to look like an
article of food in general use, and the sale of which may, by reason of such
coloration or adulteration, cheat the general public into purchasing that which
they may not intend to buy. The Constitution of the United States does not
secure to any one the privilege of defrauding the public.'
14
The assertion that the statute of the state of New York which the court below
applied is repugnant to the commerce clause of the Constitution of the United
States being thus shown to be devoid of merit, there remains only to be
considered the three propositions to which we have previously adverted. We
shall briefly consider and dispose of them.
15
1st. It is insisted that, even although it was in the power of the state of New
York to legislate for the prevention of fraud and deception by forbidding the
sale of the adulterated food products, such prohibition could only operate upon
contracts made within, or intended to be executed within, the state, and as the
contract here in controversy was not of such character, therefore the law of the
state of New York was erroneously held to control. This proposition is based on
the assumption that because the buyers of the coffee were residents of
Maryland, therefore the contract must be treated as having been made for the
purpose of securing the shipment of the coffee from Rio Janeiro to the
residence of the buyers, hence the city of New York was referred to in the
contract merely as the port of entry. It is insisted, per contra, that this
proposition was not relied upon at the trial, nor called to the attention of the
court of appeals of the state of New York, and should not be now considered,
because if it had been raised below it would have been met by proof showing
that the buyers, although residents in Maryland, were engaged in carrying on a
business for the sale of coffee in New York city. The suggestion that the
proposition was not made below is borne out by the fact that it was not referred
to by the court of appeals of the state of New York or in the serveral opinions
handed down by the supreme court of the state of New York during the course
of the protracted litigation which the cause has engendered. Be this as it may,
however, we think the proposition is devoid of merit. The contract of sale was
made in New York; the storage and delivery in the city of New York was
therein provided for. It was clearly, therefore, a New York contract, and
governed by the law of New York.
16
2d. It is urged that, even although there was power in the state of New York to
legislate on the subject of adulteration of food, such legislation ceased to be
operative as regards food products imported into the United States through the
channels of foreign commerce after the passage of the act of Congress
approved August 30, 1890, 'providing for the inspection of meats for
exportation, prohibiting the importation of adulterated articles of food or drink,
and authorizing the President to make proclamation in certain cases.' 26 Stat. at
L. 414, chap. 839, U. S. Comp. Stat. 1901, p. 3185. The second section of that
act, it is insisted, does not exclude from importation adulterated food, but
simply adulterated food which is mixed with any poisonous or noxious
chemical, drug, or other ingredient injurious to health, which, it is urged, was
not the case with the coffee in question. The language of the section upon
which this contention is based is as follows:
17
'That it shall be unlawful to import into the United States any adulterated or
unwholesome food or drug, or any vinous, spirituous, or malt liquors,
adulterated or mixed with any poisonous or noxious chemical, drug, or other
ingredient injurious to health.'
18
19
3d. In the trial court the plaintiff tendered evidence to demonstrate that there
was a demand in some portions of the country for artificially colored coffee,
and, to the ruling of the court excluding such testimony as irrelevant, exception
was saved. Although the court of appeals, in its opinion, did not make any
special reference to the subject, it is insisted that the question was called to its
attention, and that, in affirming the judgment, it in effect sustained the action of
the trial court in excluding the testimony, and thereby deprived the plaintiff of
rights secured under the Constitution of the United States. The effect of the
evidence, it is argued, had it been admitted, would have been to show that
coffee artificially colored as a means of fraud and deception was a recognized
article of commerce, and therefore the right to deal in it was protected by the
commerce clause of the Constitution of the United States, and such dealings
could not, therefore, be controlled by the state law. To state the proposition we
think is to answer it.
20
21
Affirmed.