Cunard Steamship Co., Ltd. v. Mellon, 262 U.S. 100 (1923)

Cunard Steamship Co., Ltd. v. Mellon


Nos. 659-662

, 666-670

, 678

, 693

, 694


Argued January 4, 5, 1923
Decided April 30, 1923
262 U.S. 100

APPEALS FROM THE DISTRICT COURT OF THE UNITED STATES
FOR THE SOUTHERN DISTRICT OF NEW YORK

1. The words "transportation" and "importation," in the Eighteenth Amendment, are to be taken in their ordinary sense, the former comprehending any real carrying about or from one place to another, and the latter any actual bringing into the country from the outside. P. 121.

2. The word "territory," in the Amendment (in the phrase "the United States and all territory subject to the jurisdiction thereof") means the regional areas, of land and adjacent waters, over which the United States claims and exercises dominion and control as a sovereign power, the term being used in a physical, not a metaphorical, sense, and referring to areas and districts having fixity of location and recognized boundaries. P. 122.

3. The territory subject to the jurisdiction of the United States includes the land areas under its dominion and control, the ports, harbors, bays, and other enclosed arms of the sea along its coast, and a marginal belt of the sea extending from the coast line outward a marine league, or three geographic miles, and this territory, and all of it, is that which the Amendment designates as its field of operation. P. 122.

4. Domestic merchant ships outside the waters of the United States, whether on the high seas or in foreign waters, are part of the "territory" of the United States in a metaphorical sense only, and are not covered by the Amendment. P. 123.

5. The jurisdiction arising out of the nationality of a merchant ship, as established by her domicile, registry, and use of the flag, partakes more of the characteristics of personal than of territorial sovereignty, is chiefly applicable to ships on the high seas where there is no territorial sovereign; and, as respects ships in foreign territorial waters, it has little application beyond what is affirmatively or tacitly permitted by the local sovereign. P. 123.

6. The Amendment covers foreign merchant ships when within the territorial waters of the United States. P. 124.

7. A merchant ship of one country, voluntarily entering the territorial limits of another, subjects herself to the jurisdiction of the latter. The jurisdiction attaches in virtue of her presence, just as with other objects within those limits. During her stay, she is entitled to the protection of the laws of that place, and correlatively is bound to yield obedience to them. The local sovereign may, out of considerations of public policy, choose to forego the exertion of its jurisdiction, or to exert it in a limited way only, but this is a matter resting solely in its discretion. P. 124.

8. The Eighteenth Amendment does not prescribe any penalties, forfeitures, or mode of enforcement, but, by its second section, leaves these to legislative action. P. 126.

9. The only instance in which the National Prohibition Act recognizes the possession of intoxicating liquor for beverage purposes as lawful is where the liquor was obtained before the act went into effect and is kept in the owner’s dwelling for use therein by him, his family, and his bona fide guests. P. 127.

10. Examination of the National Prohibition Act, as supplemented November 23, 1921, c. 134, 42 Stat. 222, shows

(a) That it is intended to be operative throughout the territorial limits of the United States, with the single exception of liquor in transit through the Panama Canal or on the Panama Railroad,

(b) That it is not intended to apply to domestic vessels when outside the territorial waters of the United States,

(c) That it is intended to apply to all merchant vessels, whether foreign or domestic, when within those waters, save as the Panama Canal Zone exception provides otherwise. Pp. 127-129.

11. Congress, however, has power to regulate the conduct of domestic merchant ships when on the high seas, or to exert such control over them when in foreign waters as may be affirmatively or tacitly permitted by the territorial sovereign. P. 129.

12. The antiquity of the practice of carrying intoxicating liquors for beverage purposes as part of a ship’s sea stores, the wide extent of the practice, and its recognition in a congressional enactment, do not go to prove that the Eighteenth Amendment and the Prohibition Act could not have been intended to disturb that practice, since their avowed and obvious purpose was to put an end to prior practices respecting such liquors. P. 129.

13. After the adoption of the Amendment and the enactment of the National Prohibition Act, Congress withdrew the prior statutory recognition of liquors as legitimate sea stores. Rev.Stats., § 2775; Act of September 21, 1922, c. 356, Tit. IV, and § 642, 42 Stat. 858, 948, 989. P. 130.

14. The carrying of intoxicating liquors, as sea stores, for beverage purposes, through the territorial waters or into the ports and harbors of the United States by foreign or domestic merchant ships is forbidden by the Amendment and the act. P. 130.

284 F. 890 affirmed.

285 F. 79 reversed.

Appeals from decrees of the district court dismissing, on the merits, as many suits brought by the appellant steamship companies for the purpose of enjoining officials of the United States from seizing liquors carried by appellants’ passenger ships as sea stores and from taking other proceedings against the companies and their vessels, under the National Prohibition Act.