The International Railway Company owns and operates two public toll bridges across the Niagara river between the United States and Canada. One is at Niagara Falls, the other at Lewiston, a short distance below. Over each bridge the company operates regularly its passenger cars; and over each there is a heavy passenger travel also in other vehicles and on foot. For more than 20 years prior to June, 1920, the government had, at its own expense, maintained at the American end of these bridges customs inspectors, continuously day and night, including Sundays and holidays. Then the collector of customs of the port of Buffalo notified the company that on Sundays and holidays thereafter no vehicle (except trolley cars) would be permitted to enter the United States; that no passenger would be allowed to enter except after surrender to the customs guard of all personal baggage, even the smallest handbag; and that all vehicles (except trolley cars) and all baggage surrendered would be held by the collector, at the owner's risk, for examination on the next following working day. The company was further advised that continued service of customs inspectors on Sundays and holidays could be secured, if it would make application for a special license under the Act of February 13, 1911, c. 46, § 5, 36 Stat. 899 (Comp. St. § 5571), as amended by the Act of February 7, 1920, c. 61, 41 Stat. 402. Day and night customs service on ordinary week days was to be continued at the expense of the government as thereto fore. The collector acted throughout under instructions of the Secretary of the Treasury.
The act of 1911, entitled 'An act to provide for the lading or unlading of vessels at night,' etc., declares that immediate lading or unlading of any vessel or other conveyance can be had upon the obtaining by 'master, owner, agent or consignee' of a special license therefor. To obtain the license it is necessary that the applicant shall agree to pay to the collector of customs an amount equal to the extra compensation of the customs officers employed therefor at night or on Sundays or holidays, and shall give a bond conditioned to indemnify the United States against all losses which arise from granting the license. The compensation payable for overtime, including services on Sundays and holidays, was fixed by the Secretary of the Treasury at double the day rate; and the amount of the bond for a six months' license is fixed by the statute at $50,000. The amendment of 1920 provides, among other things, that the work for which extra compensation is payable by the licensee shall include that of examining 'passengers' baggage.' The company does not unlade any cargo at night or on Sundays or holidays, and does not contemplate doing so. It is interested only in preserving the passenger traffic passing over its bridges. This traffic on working days is not nearly as heavy as on Sundays and holidays. Discontinuance of the customs service on those days would, in large measure, destroy that traffic.
The company brought this suit in the federal District Court for Western New York against the collector to enjoin the threatened action, insisting that the provisions of these statutes are not applicable to a toll bridge and that the collector is without power to exact, as a condition of continuing the service, that the company take a license with the attendant burdens. The District Court dismissed the bill for want of equity (271 Fed. 313); and its decree was affirmed by the Circuit Court of Appeals (273 Fed. 153). The case was brought here by appeal; and a petition for a writ of certiorari was also filed, consideration of which was postponed until the hearing on the merits. Whether the action taken and threatened exceeds the powers conferred by law is the main question presented.