Hammond Packing Co. v. Montana

So long as it .does not interfere with interstate commerce, a State may restrict the manufacture of oleomargarine in a way that does not hamper that of butter. The classification is reasonable and does not offend the equal protection clause of the Fourteenth Amendment. Capital City Dairy Co. v. Ohio, 183 U. S. 238. A State may forbid the manufacture of oleomargarine altogether without violating the due process or equal protection provisions of the Fourteenth Amendment. Powell v. Pennsylvania, 127 U. S. 678. A State may express and ■carry out its policy in restricting and forbidding the manufacture of articles either by police, or by revenue, legislation. Quong Wing v. Kirkendall, 223 U. S. 59.

ERROR TO THE SUPREME COURT OF THE STATE OF MONTANA. The facts, which involve the constitutionality under the due process and equal protection clauses of the Fourteenth Amendment of a statute of Montana imposing a license tax on the carrying on of the business of selling oleomargarine, are stated in the opinion. The statute providing for a license tax of one cent per pound on sales of oleomargarine, butterine and imitation cheese denies to plaintiff due process of law and the equal protection of the laws in violation of the Fourteenth Amendment. The Supreme Court of the State decided that the tax is imposed for the purpose of revenue in the exercise of the taxing power and that the imposition of such tax is authorized by the constitution of the State. The oleomargarine sold, after having been recéived, stored and held for sale in Silver Bow County, was subject to .the taxing power, of the State. Am. Steel & Wire Co. v. Speed, 192 U. S. 500; Kehrer v. Stewart, 197 U. S. 60; McCray v. United States, 195 U. S. 53. The legislative assembly of Montana is authorized to classify for .the purpose of taxation and may lawfully impose a tax upon one class of property or one occupation to the exclusion of other property and other occupations. Southwestern Oil Co. v. Texas, 217 U. S. 114. The only inquiry is whether the placing of oleomargarine, butterine and imitation of cheese in a separate class for the purpose of taxation is a legitimate exercise.of the taxing power and whether such a classification is not arbitrary, unreasonable and discriminatory, and in violation of the equal protection clause of the Fourteenth Amendment. Oleomargarine is a wholesome article of food, a recognized article of commerce, and its manufacture and sale cannot be prohibited by a State. Schollenberger v. Pennsylvania, 171 U. S. 1; Collins v. New Hampshire, 171 U. S. 30. While the State can, in the exercise of the police power, provide reasonable regulations with reference to the manufacture and sale of oleomargarine in order to prévent deception and fraud and in the interest of the health of the people of the State, Capital City Dairy Co. v. Ohio, 183 U. S. 238, it may not abuse the taxing power. See Spencer v. Merchant, 125 U. S. 345; Cooley on Taxation (3d ed.), p. 1133. No classification for the purpose of taxation is reasonable or justifiable, unless all articles used for the same purpose, and which are sold in competition, are placed in the same class. Such a classification as is made by this statute under consideration does violence to the equal protection clause of the Fourteenth Amendment. Connolly v. Union Sewer Pipe Co., 184 U. S. 540; Gulf, Col. &c. R. R. v. Ellis, 165 U. S. 150. McCray v. United States, 195 U. S. 27, distinguished.