Clark v. Paul Gray, Inc., 306 U.S. 583 (1939)

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306 U.S.

583
59 S.Ct. 744
83 L.Ed. 1001

CLARK, Director of Motor Vehicles, et al.


v.
PAUL GRAY, Inc., et al.
No. 534.
Argued March 27, 1939.
Decided April 17, 1939.

Appeal from the District Court of the United States for the Southern
District of California.
[Syllabus from pages 583-585 intentionally omitted]
Messrs. Amos M. Mathews, of Chicago, Ill., and Frank W. Richards, of
Los Angeles, Cal., for appellants.
Mr. Everett W. Mattoon, of Los Angeles, Cal., for appellees.
Mr. Justice STONE delivered the opinion of the Court.

The principal questions for decision are whether the California Caravan Act of
1937, exacting fees aggregating $15 for each automobile driven into the state
for sale, imposes a forbidden burden on interstate commerce or infringes the
due process or equal protection clauses of the Fourteenth Amendment,
U.S.C.A.Const.

This is an appeal under 238(3), 266 of the Judicial Code, 28 U.S.C.


345(3), 380, 28 U.S.C.A. 345(3), 380, from a final decree of the district
court for southern California, three judges sitting, enjoining appellants, officers
of the State of California, from enforcing the license and fee provisions of
Chapter 788, p. 2253, California Statutes of 1937. Gray v. Ingels, D.C., 23
F.Supp. 946.1

The statute, known as the Caravan Act, was enacted as a substitute for the

Caravan Act of 1935, c. 402, p. 1453, Cal.Stat.1935, held invalid in Ingels v.


Morf, 300 U.S. 290, 57 S.Ct. 439, 81 L.Ed. 653, as an infringement of the
commerce clause. 'Caravaning' is defined in 1 of the present Act as the
'transportation of any vehicle * * * operated on its own wheels, or in tow of a
motor vehicle, for the purpose of selling or offering the same for sale * * *
within or without this State.' Sections 4, 5 and 6 exact in lieu of all other fees
two license fees, each of $7.50 for a six months permit for caravaning a vehicle
on the state highways. One of these is 'to reimburse the State for expense
incurred in administering police regulations pertaining to the operation of
vehicles moved pursuant to such permits and to public safety upon the
highways as affected by such operation'; the other is declared to be
'compensation for the privilege of using the public highways'. Section 8,
excepts from the operation of the statute vehicles moving wholly within either
of two zones which are approximately the northern and southern halves of the
state. Other sections of the Act make provision for the issuance of licenses and
the collection of fees. Section 12 provides for the collection of fees by seizure
and sale of vehicles transported in violation of the Act, and 13 prescribes
criminal penalties for violation.
4

Appellees, numerous individuals, copartnerships and corporations, joined in


bringing the present suit against appellants, state officers charged with the duty
of enforcing the Act, alleging that each appellee had driven and would in the
course of business drive automobiles into California for the purpose of sale.
They prayed an injunction restraining appellants from collecting the fees and
enforcing the provisions of the statute in aid of their collection. The district
court's findings state that the amount involved in the action is in excess of the
sum of $3,000; that each of appellees, in the course of business of selling motor
cars, purchases cars previously registered in other states and 'caravans' them
into the state of California; that cars for sale are often moved between points in
a state zone; that the operation of cars in caravans does not create an additional
hazard or a traffic problem necessitating special policing of the caravans and
that the caravaning of cars does not create undue wear and tear on the highways
of the state; that the fees charged are excessive and bear no relation to the
added expense to the motor vehicle department of policing the highways of the
state of California; and that they are disproportionate to other taxes or license
fees charged by the state for the use of the highways. The court concluded that
the statute discriminated against interstate commerce, deprived appellees of
their property without due process, and denied to them equal protection of the
laws, in that it applies only to those using the highways for the transportation of
motor vehicles for the purposes of sale and does not apply to other persons
using the highways under comparable circumstances.

Appellants assail here the findings of fact of the court below on which it
predicated its conclusion of unconstitutionality, and insist that upon the
evidence there is no basis for the conclusion that the fees exacted are excessive
or that there is discrimination against interstate commerce or a denial of equal
protection or due process.

6Jurisdiction of the District Court.


7

A motion of appellants in the court below to dismiss the bill of complaint for
want of the jurisdictional amount was withdrawn, and the jurisdiction of the
district court is not challenged here. But on the argument, it appearing doubtful
whether the 'matter in controversy' exceeded 'the sum or value of' $3,000,
24(1) of the Judicial Code, 28 U.S.C. 41(1), 28 U.S.C.A. 41(1), we raised
the question whether the jurisdictional amount was involved, as was our duty.
Mansfield, Coldwater & Lake Michigan R. Co. v. Swan, 111 U.S. 379, 382, 4
S.Ct. 510, 511, 28 L.Ed. 462; Stratton v. St. Louis Southwestern R. Co., 282
U.S. 10, 13, 51 S.Ct. 8, 9, 75 L.Ed. 135; St. Paul Indemnity Co. v. Red Cab
Co., 303 U.S. 283, 287, 58 S.Ct. 586, 589, 82 L.Ed. 845, note 10. The bill of
complaint alleges generally that 'the amount involved in this litigation is in
excess of Three Thousand Dollars ($3,000.00), exclusive of interest and costs'.
But it is plain that this allegation is insufficient to satisfy jurisdictional
requirements where there are numerous plaintiffs having no joint or common
interest or title in the subject matter of the suit. As the bill of complaint shows
on its face, and as the findings establish, each appellee maintains his own
separate and independent business, which is said to be affected by the
challenged fees. No joint or common interest of appellees in the subject matter
of the suit is shown. Cf. Gibbs v. Buck, 307 U.S. 66, 59 S.Ct. 725, 83 L.Ed. , decided this day.

It is a familiar rule that when several plaintiffs assert separate and distinct
demands in a single suit, the amount involved in each separate controversy
must be of the requisite amount to be within the jurisdiction of the district
court, and that those amounts cannot be added together to satisfy jurisdictional
requirements. Wheless v. St. Louis, 180 U.S. 379, 21 S.Ct. 402, 45 L.Ed. 583;
Rogers v. Hennepin County, 239 U.S. 621, 36 S.Ct. 217, 60 L.Ed. 469; Pinel v.
Pinel, 240 U.S. 594, 36 S.Ct. 416, 60$L.Ed. 817; Scott v. Frazier, 253 U.S. 243,
40 S.Ct. 503, 64 L.Ed. 883. The general allegation in the bill of complaint that
'the amount involved in this litigation is in excess of' $3,000 and the finding of
the court that 'the amount involved in the within action' exceeds the
jurisdictional amount, give no indication that the amount in controversy with
respect to the claim of any single plaintiff exceeds the jurisdictional amount
and are insufficient to show that the district court had jurisdiction of the cause.

Pinel v. Pinel, supra.


9

Examination of the record shows that only in the case of a single appellee, Paul
Gray, Inc., is there any allegation or proof tending to show the amount in
controversy. As to it the bill of complaint alleges that 'it causes to be caravaned
into the said state * * * approximately one hundred fifty (150) automobiles
each year.' This allegation is supported by evidence that this appellee is
regularly engaged in the business and tending to show that its volume exceeded
that amount when the act went into effect July 2, 1937. Since the amount in
controversy in a suit to restrain illegal imposition of fees or taxes is the amount
of the fees or taxes which would normally be collected during the period of the
litigation, Healy v. Ratta, 292 U.S. 263, 54 S.Ct. 700, 78 L.Ed. 1248, we cannot
say, upon this state of the record, that jurisdiction was not established as to
appellee Paul Gray, Inc.

10

We ignore affidavits filed here for the purpose of supplementing the record by
showing the amount in controversy as to another appellee. While it has been the
practice of this Court to receive affidavits for the purpose of establishing its
own appellate jurisdiction under statutes prescribing that a specified amount in
controversy is prerequisite to the appeal, Williamson v. Kincaid, 4 Dall. 20, 1
L.Ed. 723; Rush v. Parker, 5 Cranch 287, 3 L.Ed. 103; Roura v. Government of
Philippine Islands, 218 U.S. 386, 31 S.Ct. 73, 54 L.Ed. 1080; see Red River
Cattle Co. v. Needham, 137 U.S. 632, 11 S.Ct. 208, 34 L.Ed. 799, that
procedure is inapplicable here. Our review of the action of the district court in
assuming jurisdiction is confined to the record before the district court.
Henneford v. Northern Pacific Railway Co., 303 U.S. 17, 58 S.Ct. 415, 82
L.Ed. 619.

11

Proper practice requires that where each of several plaintiffs is bound to


establish the jurisdictional amount with respect to his own claim, the suit
should be dismissed as to those who fail to show that the requisite amount is
involved.2 Otherwise an appellate court could be called on to sustain a decree in
favor of a plaintiff who had not shown that the claim involved the jurisdictional
amount, even though the suit were dismissed on the merits as to e other
plaintiffs who had established the jurisdictional amount for themselves.
Although it appears that such a result could not follow here, we think it better
practice to dismiss the suit for want of the jurisdictional amount as to all
appellees except Paul Gray, Inc. See Rich v. Lambert, 12 How. 347, 13 L.Ed.
1017; Ex parte Baltimore & Ohio Railroad Co., 106 U.S. 5, 1 S.Ct. 35, 27 L.Ed.
78; Hassall v. Wilcox, 115 U.S. 598, 6 S.Ct. 189, 29 L.Ed. 504. Cf. Grosjean v.
American Press Co., Inc., 297 U.S. 233, 56 S.Ct. 444, 80 L.Ed. 660.
Discrimination.

12

Apart from appellees' insistence that the fees are an unconstitutional burden on
interstate commerce because excessive, the substance of their contention is that
the statute discriminates between automobiles transported into the state singly
and those similarly transported intrazone, for which no fee is charged, and also
that the statute discriminates between those cars driven by appellees in caravans
and those similarly driven wholly within either of the state zones, for which no
fee is charged.

13

In Morf v. Bingaman, 298 U.S. 407, 56 S.Ct. 756, 80 L.Ed. 1245, we had
occasion to consider the validity of a fee or tax exacted by New Mexico for the
transportation into the state of any motor vehicle for the purpose of sale within
or without the state. It there appeared that the plaintiff, with others, was
engaged in transporting motor cars on their own wheels in caravans across the
State of New Mexico for the purpose of sale, and that their transportation for
that purpose had resulted in the creation of a distinct class of motor vehicle
traffic of considerable magnitude. In the course of this business second-hand
cars purchased at points in the east are assembled in caravans, which are driven
as such to the point of sale in California. Large numbers of the cars are coupled
in twos, each two in charge of a single driver who operates the forward car and
controls the movement of both by the use of the mechanism and brakes of one.
The drivers of caravans, except two or three regularly engaged, are casually
employed and serve without pay or for small compensation in order to secure
transportation to the point of destination. We said, 298 U.S. pages 411, 412, 56
S.Ct. page 758, 80 L.Ed. 1245: 'The Legislature may readily have concluded, as
did the trial court, that the drivers have little interest in the business or the
vehicles they drive and less regard than drivers of state licensed cars for the
safety and convenience of others using the highways. The evidence supports
the inference that cars thus coupled and controlled frequently skid, especially
on curves, causing more than the usual wear and tear on the road; that this and
other increased difficulties in the operation of the coupled cars, and the length
of the caravans, increase the inconvenience and hazard to passing traffic. * * *
There is ample support for a legislative determination that the peculiar
character of this traffic involves a special type of use of the highways, with
enhanced wear and tear on the roads and augmented hazards to other traffic,
which imposes on the state a heavier financial burden for highway maintenance
and policing than do other types of motor car traffic. We cannot say that these
circumstances do not afford an adequate basis for special licensing and taxing
provisions, whose only effect, even when applied to interstate traffic, is to
enable the state to police it, and to impose upon it a reasonable charge, to defray
the burden of this state expense, and for the privilege of using the state
highways.'

14

The State of California has found it expedient to adopt licensing provisions for
this class of traffic and to exact the fees specified in the statute for the use of its
highways and the expense of policing. That this peculiar type of traffic occurs
in large volume between eastern points and points in California, and that there
is basis for the legislative judgment that the traffic imposes special burdens on
the use of the state highways for which a special charge may be made, are
abundantly supported by the record. The parties have stipulated that fifteen
thousand automobiles are brought into the state for sale annually. Of these,
from 80 to 90 per cent. come in caravans or convoys, and of the cars so moving
one-half are coupled together in twos. It further appears by stipulation that the
caravans or convoys are made up of from nineteen to twenty-five cars.

15

There is much evidence in the record indicating that if is the long haul traffic in
cars for sale in California which tends to produce the movement in large
caravans or convoys in order to save expense of transportation, and which in
turn tends to impose special burdens on the state in connection with the use of
its highways, calling for the imposition of regulations and fees different from
those applied to other types of motor car movement. Without repeating what
was said more at length of like traffic in Morf v. Bingaman, supra, the evidence
in the present case shows that coupled cars, under control of a single driver,
subject the highways to increased wear and tear because of their tendency to
skid and sway on curves and in passing other traffic, and that the length of the
caravans and the inefficiency and irresponsibility of the drivers, casually
employed, increase traffic congestion and the inconveniences and hazards of
automobile traffic. These circumstances have caused the state to make
increased provision for the policing of the traffic. It is true that the district court
found that the practice of caravaning creates no additional traffic hazard, nor
any undue wear and tear on the highways. But in this we think that its
determination was not only contrary to the evidence, but went beyond the
judicial province.

16

It is no longer open to question that the states have constitutional authority to


exact reasonable fees for the use of their highways by vehicles moving
interstate, Hendrick v. Maryland, 235 U.S. 610, 35 S.Ct. 140, 59 L.Ed. 385;
Kane v. New Jersey, 242 U.S. 160, 37 S.Ct. 30, 61 L.Ed. 222; Clark v. Poor,
274 U.S. 554, 47 S.Ct. 702, 71 L.Ed. 1199; Sprout v. South Bend, 277 U.S.
163, 48 S.Ct. 502, 72 L.Ed. 833, 62 A.L.R. 45; Morf v. Bingaman, supra; Dixie
Ohio Express Co. v. State Revenue Comm., 306 U.S. 72, 59 S.Ct. 435, 83
L.Ed. 495, decided January 30, 1939, and that for that purpose they may
classify the vehicles according to the character of the traffic and the burden it
imposes on the state by that use, and charge for the use a fee not shown to be
unreasonable or excessive. Continental Baking Co. v. Woodring, 286 U.S. 352,

370, 371, 52 S.Ct. 595, 601, 76 L.Ed. 1155, 81 A.L.R. 1402; Hicklin v. Coney,
290 U.S. 169, 54 S.Ct. 142, 78 L.Ed. 247; Morf v. Bingaman, supra, 298 U.S.
page 413, 56 S.Ct. page 759, 80$L.Ed. 1245; Dixie Ohio Express Co. v. State
Revenue Comm., supra.
17

The classification of the traffic for the purposes of regulation and fixing fees is
a legislative, not a judicial, function. Its merits are not to be weighed in the
judicial balance and the classification rejected merely because the weight of the
evidence in court appears to favor a different standard. Cf. Worcester County
Trust Co. v. Riley, 302 U.S. 292, 299, 58 S.Ct. 185, 187, 82 L.Ed. 268. The
determination of the legislature is presumed to be supported by facts known to
it, unless facts judicially known or proved preclude that possibility. Standard
Oil Co. v. Marysville, 279 U.S. 582, 584, 49 S.Ct. 430, 73 L.Ed. 856; Borden's
Farm Products Co. v. Ten Eyck, 297 U.S. 251, 263, 56 S.Ct. 453, 456, 80 L.Ed.
669; Id., D.C., 11 F.Supp. 599, 600; South Carolina Highway Department v.
Barnwell Bros., 303 U.S. 177, 191, 192, 58 S.Ct. 510, 517, 82 L.Ed. 734;
United States v. Carolene Products Co., 304 U.S. 144, 153, 154, 58 S.Ct. 778,
784, 82 L.Ed. 1234. Hence, in passing on the validity of the present
classification, it is not the province of a court to hear and examine evidence for
the purpose of deciding again a question which the legislature has already
decided. Its function is only to determine whether it is possible to say that the
legislative decision is without rational basis. This is equally the case where the
classification, which is one which the legislature was competent to make, is
applied to vehicles using the state highways in interstate commerce. South
Carolina Highway Department v. Barnwell Bros., supra, 303 U.S. page 187 et
seq., 58 S.Ct. page 514, 82 L.Ed. 734. The legislature must be assumed to have
acted on information available to courts, and where, as here, the evidence, like
that discussed in Morf v. Bingaman, supra, shows that it is at least a debatable
question whether the traffic in caravans involves special wear and tear of the
highways and increased traffic hazards requiring special police control, decision
is for the legislature and not the courts. Standard Oil Co. v. Marysville, supra;
South Carolina Highway Department v. Barnwell Bros., supra.

18

Appellee Paul Gray, Inc., so far as appears, caravans its cars for sale in
California from Detroit, Michigan, and St. Joseph, Missouri. Its cars, like those
of the other appellees, move in caravans of from nineteen to twenty-five cars. It
does not appear, nor is it contended, that this appellee transports any cars
singly. From what has been said it is evident, as was decided in Morf v.
Bingaman, supra, that cars moving in caravans of the type described constitute
a special class of traffic which may be taxed or charged for differently from
other classes without infringing the equal protection clause.

19

The argument that the statute denies equal protection to appellees because it
exacts fees for cars transported into the state for sale singly but none for cars
which move similarly intrazone or for those which enter the state not for
purposes of sale, ignores the actual circumstances in which the statute is
applied to appellees, as shown by the record, and seeks to take advantage of an
alleged discrimination which, if it exists, does appellees no harm. The
Fourteenth Amendment does not require classification for fees, more than for
taxation, to follow any particular form of words. If that adopted results in the
application of the exaction to a class which may be separately charged without
a denial of equal protection, those within the class cannot complain that it
might have been more aptly defined or that the statute may tax others who are
not within the class. See Patsone v. Pennsylvania, 232 U.S. 138, 144, 34 S.Ct.
281, 282, 58 L.Ed. 539; Silver v. Silver, 280 U.S. 117, 123, 50 S.Ct. 57, 58, 74
L.Ed. 221, 65 A.L.R. 939; Morf v. Bingaman, supra, 298 U.S. page 413, 56
S.Ct. page 759, 80 L.Ed. 1245.

20

It is the practice of transporting automobiles for long distances over the


highway for purpose of sale which has given rise to the practice of moving
them in caravans. The use of automobiles for other purposes, or for pleasure,
does not have that result. The classification of the statute, in its practical
application, embraces and is constitutionally applicable to cars moving in
caravans, the class of traffic in which appellee Paul Gray, Inc., engages and on
which it is alone taxed. One form of discrimination of which it complains is
that fees are exacted for cars driven into the state singly for sale but not for
those driven singly to market intrazone or singly from without the state for
other purposes. Appellee does not show that it belongs to either class, and so far
as the traffic in which it participates is properly taxed, it cannot complain of the
imposition of the charge on a business which it does not do.

21

So far as appellees complain that no fee is exacted for cars which move for sale
intrazone in caravans, different considerations apply. As we have said, it is the
long haul of cars for sale which has produced motor vehicle caravans and has
made them a special class for the purposes of regulation and imposition of fees.
It was for the legislature to consider and decide whether the actual conditions
which prevail in the state, affecting movement of cars for sale, eliminate or so
reduce the burden of the caravan traffic on the highways as to call for a
different classification of the short haul traffic for the purposes of regulation
and fees. The legislature having made its classification by the establishment of
zones, in the light of special conditions in the state, courts are not free to set
aside its determination unless they can say that it is without any substantial
basis. Carley & Hamilton v. Snook, 281 U.S. 66, 73, 50 S.Ct. 204, 207, 74
L.Ed. 704, 68 A.L.R. 194; Continental Baking Co. v. Woodring, supra; Sproles

v. Binford, 286 U.S. 374, 52 S.Ct. 581, 76 L.Ed. 1167; Hicklin v. Coney, supra;
Aero Mayflower Transit Co. v. Public Service Comm., 295 U.S. 285, 55 S.Ct.
709, 79 L.Ed. 1439.
22

The trial court found that cars are often moved in convoys in Zone 1, which
includes the metropolitan area of Los Angeles, and it thought this sufficient to
establish an unlawful discrimination without consideration of the other
conditions affecting the intrazone traffic. The evidence establishes, beyond any
reasonable doubt, that the movement intrazone of cars for sale in convoys
similar to that of appellees is negligible and that the principal sources of cars
for sale moving intrazone are the assembly plants of automobile manufacturers
located in or near the metropolitan areas of Los Angeles and San Francisco.
Being new cars, the bulk of them, shipped interstate or to distant Points
intrastate, move by rail, water or truck. Most of those which move on their own
wheels are driven relatively short distances, seventy-five miles or less, in the
metropolitan area over highways of more than two lanes, as distinguished from
caravans coming from without the state, which move for long distances over
two-lane highways in mountain districts. The proportion driven singly does not
appear. Such convoys or caravans as there are usually consist of two or three
cars. The evidence discloses no case of more than four. Coupling is negligible.
Each car is in charge of a regularly employed and licensed driver. The intrazone
movement is subject to other licensing and taxing provisions of the state law,
and no showing is made that the differences in fees or taxes exacted from the
two classes of traffic do not bear a fair relationship to the differences in the
burden of the traffic for which the state must provide.

23

The legislature could reasonably have concluded that the wear and tear and
injury to the highways from driving coupled cars intrazone was negligible, and
that the relatively short distances which cars are driven in twos or threes, the
character of the highways used, and the difference in the class of drivers, taken
together, eliminate from the intrazone traffic or so substantially reduce the
burden imposed by traffic like that of appellees moving interstate or interzone
as to require, in fairness, a different classification for the purpose of fees
charged for the use of the highways. We cannot say that that conclusion is
without support or infringes the principles which we have repeatedly
recognized as defining the power of the states, in the absence of Congressional
action, to classify vehicles or traffic for the purposes of regulating use of the
highways by vehicles moving interstate. If the classification with respect to a
matter remaining within state control, despite the commerce clause, is
otherwise valid, it is not any the less so because it affects interstate commerce.
See South Carolina Highway Department v. Barnwell Bros., supra, 303 U.S.
pages 191, 192, 58 S.Ct. page 517, 82 L.Ed. 734, and cases cited. As the state

has authority to charge a reasonable fee for the use of its highways, and as the
classification of the traffic which the state has made for the purpose of fixing
the fees is valid, the only remaining question is whether the fees which it has
fixed must be deemed excessive.
Reasonableness of the Fees.
24
25

In Ingels v. Morf, supra, the $15 fee charged under the California Act of 1935
for driving a car into the state for purpose of sale was contested as excessive.
There the statute declared that the fee was 'intended to reimburse the State
treasury for the added expense which the State may incur in the administration
and enforcement of this act and the added expense of policing the highways
over which such caravaning may be conducted, * * *.' St.Cal.1935, p. 1454,
6, and the automobile owner assumed and by proof sustained the burden of
showing that the charge made for the precise purposes defined by the statute
was excessive. We accepted the evidence as establishing that the cost of issuing
caravan permits was about $5 per car and as supporting the finding of the trial
court that the cost of policing did not exceed $5 a car. And we concluded that
the total cost of administration and policing was substantially less than the $15
fee charged.

26

Here a fee of $7.50 is collected for administration and enforcement of the Act
and a fee of like amount is charged for the use of the highways. Appellees have
offered no proof that either of the fees is too large, although the burden rested
upon them to show that the fees were excessive for the declared purposes.
Hendrick v. Maryland, supra, 235 U.S. page 624, 35 S.Ct. page 142, 59 L.Ed.
385; Interstate Busses Corporation v. Blodgett, 276 U.S. 245, 251, 48 S.Ct. 230,
231, 72 L.Ed. 551; Morf v. Bingaman, supra, 298 U.S. page 410, 56 S.Ct. page
757, 80 L.Ed. 1245; Ingels v. Morf, supra, 300 U.S. page 296, 57 S.Ct. page
442, 81 L.Ed. 653; Great Northern Railway Co. v. Washington, 300 U.S. 154,
57 S.Ct. 397, 81 L.Ed. 573, is not to the contrary.

27

Appellants, without abandoning their position that the burden of proof rests on
appellees, offered evidence to show that the costs of administration and policing
proved in Ingels v. Morf, supra, were incomplete. Due to the nature of the case
much of the proof is inexact and speculative. But there is evidence that thirtynine officers devoted part or all of their time to enforcing the 1937 Act. The
expense of operating their automobiles and motorcycles is considerable; an
increased burden is imposed upon the personnel of the border police stations;
and some increase in clerical force and in expenditures for stationery and
miscellaneous items has been required. Investigations of attempted evasions
increase the unit cost above that of other types of traffic. The total of these

added expenses, as computed by appellants at about $133,000 annually


certainly approximates the amount of the revenue derived from the fees. The
aggregate of the fees collected during eleven months for 14,000 cars at $7.50
each is $105,000. Appellees do nothing to challenge this evidence, and they
point to no specific errors in the estimates or computation upon which
appellants calculate the costs.
28

The state is not required to compute with mathematical precision the cost to it
of the services necessitated by the caravan traffic. If the fees charged do not
appear to be manifestly disproportionate to the services rendered, we cannot say
from our own knowledge or experience that they are excessive. Kane v. New
Jersey, supra, 242 U.S. page 168, 37 S.Ct. page 32, 61 L.Ed. 222; Interstate
Busses Corp. v. Blodgett, supra, 276 U.S. page 251, 252, 48 S.Ct. page 231, 72
L.Ed. 551; Morf v. Bingaman, supra; Dixie Ohio Express Co. v. State Revenue
Comm., supra; see Patapsco Guano Co. v. North Carolina, 171 U.S. 345, 354,
18 S.Ct. 862, 865, 43 L.Ed. 191; Territory of New Mexico ex rel. McLean &
Co. v. Denver & Rio Grande R. Co., 203 U.S. 38, 55, 27 S.Ct. 1, 5, 51 L.Ed.
78; Interstate Transit, Inc., v. Lindsey, 283 U.S. 183, 186, 51 S.Ct. 380, 381, 75
L.Ed. 953. Appellees have failed to sustain the burden of proof that either of the
fees is excessive for the purpose for which it is collected.

29

The trial court seems to have thought, as appellees argue, that unreasonableness
of the fees was established by proof that the same fees are not imposed on other
classes of traffic. But since, as we have seen, there is basis for the classification
of the traffic, there is basis for a difference in fees charged the different classes.
Hendrick v. Maryland, supra; Interstate Busses Corp. v. Blodgett, supra.
Appellees have laid no foundation for any contention that there are not
compensating differences in the traffic comparable to the difference in fees, or
for impeaching the legislative judgment that those specified are fairly related to
the traffic to which they are applied.

30

The cause will be reversed with instructions to the district court to dismiss the
case as to appellee Paul Gray, Inc., on the merits, and to dismiss as to the other
appellees for want of jurisdiction.

31

So ordered.

32

Mr. Justice BLACK is of the opinion that the case should be dismissed for
want of jurisdiction as to all the appellees.

The suit was begun July 14, 1937, before the enactment of the amendment to

The suit was begun July 14, 1937, before the enactment of the amendment to
24 of the Judicial Code, 50 Stat. 738, 28 U.S.C.A. 41(1), providing that 'no
district court shall have jurisdiction of any suit to enjoin, suspend, or restrain
the assessment, levy, or collection of any tax imposed by or pursuant to the
laws of any State where a plain, speedy, and efficient remedy may be had at law
or in equity in the courts of such State.' Section 2 of the Act, 28 U.S.C.A.
41(1a) excludes from its operation suits begun in the district courts before its
enactment.

A different question is involved in the case of a creditor's bill to liquidate an


insolvent corporation for the benefit of all creditors. There his claim must
exceed the jurisdictional amount. Lion Bonding & Surety Co. v. Karatz, 262
U.S. 77, 43 S.Ct. 480, 67 L.Ed. 871. But creditors whose claims are less may
be made parties because of their interest in a fund brought within the
jurisdiction of the court. Gibson v. Shufeldt, 122 U.S. 27, 7 S.Ct. 1066, 30
L.Ed. 1083; Handley v. Stutz, 137 U.S. 366, 11 S.Ct. 117, 34 L.Ed. 706;
National Bank of Commerce v. Allen, 8 Cir., 90 F. 545, 555, 556.

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