Leloup v. Port of Mobile

Citations

• 127 U.S. 640
• 8 S. Ct. 1380
• 32 L. Ed. 311
• 1888 U.S. LEXIS 2028

Syllabus

<p>Where a telegraph company is doing the business of transmitting messages between different States, and has accepted and is acting under the telegraph law passed by Congress July 24th, 1866, no State within which it sees fit to establish an office Can impose upon it a license' tax, or require it to take out a_license for the transaction of such, business.</p> <p>Telegraphic communications are commerce, as well as in the nature of postal service, and if carried on between different States, they are interstate commerce, and within the power of regulation conferred upon Congress, free from the control of state regulations, except such as are strictly of a police character; and any state regulations by way of tax on the occupation or business, or requiring a license' to transact such business, are unconstitutional and void.</p> <p>A general license tax on a telegraph company affects its entire business, interstate as well as domestic or internal, and is unconstitutional.</p> <p>The property of a telegraph company, situated within a State, may be taxed by the State as all other property is taxed; but its business of an interstate character cannot be thus taxed.</p> <p>The Western Union Telegraph Company established an office in the city of Mobile, Alabama, and was required to pay a license tax under a city ordinance, which imposed an annual license tax of $225 on all telegraph, companies, and the agent of the company was fined for the non-payment of this tax: in an action to recover the fine, he pleaded the charter and nature of occupation of the company, and its acceptance of the act of Congress of July 24th, 1866, and the fact that its business consisted in transmitting messages to all parts of the United States, as well as in Alabama: Held, a good defence.</p>