U.S. Supreme Court ZIFFRIN, INC. v. REEVES, 308 U.S. 132 (1939)

[Page 308 U.S. 132, 134]

seeks to restrain officers of the State from enforcing the contraband and penal provisions of that enactment.

The bill charges that to enforce the Control Law would impair appellant's rights under the Commerce Clause, Federal Constitution, U.S.C. A.Const. art. 1, 8, cl. 3, and deprive it of the Due Process and Equal Protection guaranteed by the Fourteenth Amendment. The District Court- three judges sitting-sustained a motion to dismiss. 24 F.Supp. 924. A direct appeal brings the matter here.

The Statute is a long, comprehensive measure (123 sections) designed rigidly to regulate the production and distribution of alcoholic beverages through means of licenses and otherwise. The manifest purpose is to channelize the traffic, minimize the commonly attendant evils; also to facilitate the collection of revenue. To this end manufacture, sale, transportation, and possession are permitted only under carefully prescribed conditions and subject to constant control by the state. Every phase of the traffic is declared illegal unless definitely allowed. The property becomes contraband upon failure to observe the statutory requirement and whenever found in unauthorized possession.

Section 52 provides-'It shall be a criminal offense for any person to manufacture, store, sell, purchase, transport or otherwise in any manner traffic in alcoholic beverages as that term is defined in this Act, without first having paid to the Department of Revenue at its office in Frankfort, the license tax required by this Act, and without first having obtained the license required by this Act.' [Footnote 3]

[Page 308 U.S. 132, 135]

visions of this Act.' [Footnote 4] Peace officers are authorized to seize such contraband and institute proceedings for forfeiture.

[Page 308 U.S. 132, 136]

the premises specifically designated in the license, to engage in the business of distiller, rectifier, or vintner, as the case may be, as those terms are defined in this Act, and to transport for himself only any alcoholic beverage which he is authorized under this license to manufacture or sell, ....'7

Section 22-'Sales and deliveries of alcoholic beverages may be made at wholesale, and from the licensed premises only, ... (3) by licensed distillers, rectifiers or vintners for export out of the Commonwealth; provided, no distiller, rectifier or vintner, shall sell or contract to sell, give away or deliver any alcoholic beverages to any person, who is not duly authorized by the law of the State of his residence and of the Federal Government if located in the United States, to receive and possess said alcoholic beverages; and in no event shall he sell or contract to sell, give away or deliver, any of his products to any retailer or consumer in Kentucky.' 8

Section 27-'A Transporter's License shall authorize the holder to transport distilled spirits and wine to or from the licensed premises of any licensee under this Act, provided' etc. [Footnote 9] Section 54(7)-'A Transporter's License as provided for in section 18(7) of this Act shall be issued only to persons who are authorized by proper certificate from the Division of Motor Transportation in the Department of Business Regulation to engage in the business of a common carrier.' [Footnote 10]

[Page 308 U.S. 132, 137]

transported by the holder of any license authorized by section 18 of this Act, from and to express or freight depots to and from the premises covered by the license of the person so transporting distilled spirits or wine.' [Footnote 11]

[Page 308 U.S. 132, 141]

The power of a state to regulate her internal affairs notwithstanding the consequent effect upon interstate commerce was much discussed in South Carolina Highway Dept. v. Barnwell Bros., 303 U.S. 177, 189, 58 S.Ct. 510, 515, 516. There it was again affirmed that although regulation by the state might impose some burden on interstate commerce this was permissible when 'an inseparable incident of the exercise of a legislative authority, which, under the Constitution, has been left to the states.' In the absence of controlling language to the contrary-and there is none-the Federal Motor Carrier Act should not be brought into conflict with this reiterated doctrine.

The challenged decree must be affirmed.

Mr. Justice BUTLER took no part in the consideration or decision of this case.

Affirmed. Footnotes

Footnote 1 Aug. 9, 1935, c. 498, 49 Stat. 543, 49 U.S.C.A. 301, et seq.

Footnote 2 Kentucky Acts 1938, Ch. 2, Baldwin's Supp. to Carroll's Statutes 1936, ch. 81, sec. 2554b-97, et seq.

Footnote 3 Baldwin's Supplement to Carroll's Kentucky Statutes 1936, sec. 2554b-150.

Footnote 4 Supra Note (3), sec. 2554b-151. 'The following property is hereby declared to be contraband: (1) Any illicit still designed for the unlawful manufacture of intoxicating liquors, or any apparatus designed for the unlawful manufacture of spirituous, vinous, malt or intoxicating liquors. An illicit still or apparatus designed for the unlawful manufacture of intoxicating liquors shall include (a) An outfit or parts of an outfit commonly used, or intended to be used, in the distillation or manufacture of spirituous, vinous or malt liquors which is not duly registered in the office of a collector of Internal Revenue for the United States, and the burden of proving that same is so registered shall be on the defendant or defendants under charge; (b) any and all material, equipment, implements, devices, firearms, and other property used or intended for use, directly and immediately, in connection with the illicit traffic in alcoholic beverages. (2) Any spirituous, vinous or malt liquors in the possession of any one not entitled to possession of the same under the provisions of this Act. (3) Any spirituous, vinous or malt liquors in the possession of any one and to which the revenue stamps have not been affixed as and when required by the provisions of the Alcoholic Beverage Tax Act, sections 4281c-1 to and including 4281c-25, Carroll's Kentucky Statutes, one thousand nine hundred thirty-six (1936) edition. (4) Any distilled spirits, wine or malt beverage in a container of a size prohibited by law or prohibited the particular party in whose possession same is found. (5) Any distilled spirits or wine kept in an unauthorized place within any licensed premises under the provisions of section 77 of this Act. (6) Any motor vehicle, water or air craft, or other vehicle in which any person is illegally possessing or transporting alcoholic beverages.'

Footnote 5 Supra Note (3), sec. 2554b-114.

Footnote 6 Supra Note (5).

Footnote 7 Supra Note (3), sec. 2554b-118.

Footnote 8 Supra Note (3), sec. 2554b-119.

Footnote 9 Supra Note (3), sec. 2554b-124.

Footnote 10 Supra Note (3), sec. 2554b-154(7).

Footnote 11 Supra Note (3), sec. 2554b-190.

Footnote 12 Supra Note (3), sec. 2554b-131.

Footnote 13 Supra Note (3), sec. 2554b-134(5).

Footnote 14 Supra Note (3), sec. 2554b-135.