Downes v. Bidwell
21 S. Ct. 770, 1901 U.S. LEXIS 286, 182 U.S. 244 (1901)
Rule of Law:
A territory acquired by the United States through treaty is not considered part of the "United States" for purposes of the Constitution's revenue clauses, specifically the Uniformity Clause, until Congress expressly incorporates it. Therefore, Congress may enact a tariff on goods imported from such an unincorporated territory.
Facts:
- In 1899, Spain ceded the island of Puerto Rico to the United States through the Treaty of Paris.
- In 1900, Congress passed the Foraker Act, which established a civil government for Puerto Rico and imposed a temporary duty on goods imported into the United States from Puerto Rico.
- The duty was set at 15 percent of the duties regularly collected upon like articles imported from foreign countries.
- S. B. Downes, a merchant, received a shipment of oranges from a port in Puerto Rico at the port of New York in November 1900.
- George R. Bidwell, the collector of customs for the port of New York, acting under the authority of the Foraker Act, demanded payment of these duties.
- Downes paid the duties under protest, asserting that the tariff was unconstitutional because Puerto Rico was part of the United States.
Procedural Posture:
- S.B. Downes, having paid duties under protest, brought an action against George R. Bidwell, the Collector of the Port of New York, in the Circuit Court of the United States for the Southern District of New York to recover the sums paid.
- The Circuit Court rendered a judgment for the defendant, Bidwell.
- Downes then sued out a writ of error, bringing the case before the Supreme Court of the United States for review.
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Issue:
Does the imposition of duties on merchandise imported from Puerto Rico, as mandated by the Foraker Act, violate the Uniformity Clause of the U.S. Constitution which requires all duties, imposts, and excises to be uniform 'throughout the United States'?
Opinions:
Majority - Justice Brown
No. The Foraker Act is constitutional because the Island of Puerto Rico is a territory appurtenant and belonging to the United States, but it is not a part of the United States within the meaning of the revenue clauses of the Constitution. The court reasoned that there is a distinction between constitutional prohibitions that go to the root of Congress's power to act at all (like passing a bill of attainder), which apply everywhere, and provisions that are operative only 'throughout the United States,' like the Uniformity Clause. The term 'United States' in this clause refers to the States whose people formed the Constitution and those later admitted to the Union. Historical practice, including the governance of territories acquired through treaties like the Louisiana Purchase and the cession of Florida, shows that Congress has consistently treated territories as distinct from the States and has not automatically applied all constitutional provisions to them.
Concurring - Justice White
No. While the Constitution is the supreme law over all U.S. territory, the applicability of any particular provision depends on whether the territory has been 'incorporated' into the United States. Incorporation is not an automatic result of acquisition but requires an express or implied action by Congress. The Treaty of Paris, which stated that the 'civil rights and political status of the native inhabitants ... shall be determined by the Congress,' explicitly left the island’s status to Congress and withheld incorporation. Since Congress had not incorporated Puerto Rico, the island was 'foreign to the United States in a domestic sense,' making the Uniformity Clause inapplicable to its commerce.
Concurring - Justice Gray
No. Civil government of the United States does not extend immediately and of its own force over territory acquired by war. There is necessarily a transition period where the territory is governed by the political departments. So long as Congress has not incorporated the territory into the United States, it is not domestic territory in the sense of the revenue laws, and Congress has the authority to establish a temporary system of duties for it.
Dissenting - Chief Justice Fuller
Yes. The imposition of these duties is unconstitutional. Once the treaty of cession was ratified, Puerto Rico ceased to be a foreign country and became a territory of the United States, making it part of the 'United States' as the term is used in the Uniformity Clause. The uniformity required is geographical, and the power to tax granted by the Constitution is subject to this qualification wherever the power is exercised. To hold that Congress possesses unlimited power over the territories is to overthrow the basis of constitutional law, which establishes a government of enumerated and limited powers.
Dissenting - Justice Harlan
Yes. The Foraker Act is unconstitutional. Congress has no existence and can exercise no authority outside of the Constitution. The idea of 'incorporation' is an invention to justify a system of colonial government inconsistent with the principles of American liberty. The Constitution is the supreme law of the land over every foot of territory under the jurisdiction of the United States, and its restrictions, including the Uniformity Clause, apply with full force as soon as a territory is acquired.
Analysis:
This case established the controversial 'territorial incorporation doctrine,' which created a legal distinction between incorporated territories (like Alaska and Hawaii), where the Constitution applies in full, and unincorporated territories (like Puerto Rico, Guam, and the Philippines), where only 'fundamental' constitutional rights apply. This doctrine provided a legal framework for the United States to govern its newly acquired overseas possessions from the Spanish-American War as dependencies rather than as integral parts of the nation destined for statehood. The decision affirmed broad congressional power over these territories, allowing for distinct legal and tax systems, and continues to be the controlling precedent for the legal status of modern U.S. territories.
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