Nix v. Hedden one of the first companies to ship produce from Virginia, Florida, and Bermuda to New York. In 1883, President Chester A. Arthur signed the Tariff Act of March 3, 1883, requiring a tax to be paid on imported vegetables, but not fruit. The John Nix & Co. company filed a suit against Edward L. Hedden, Collector of the Port of New York, to recover back duties paid under protest. They argued against the tariff by pointing out that, botanically, a tomato is a fruit due to its seed-bearing structure growing from the flowering part of a plant. At the trial,
Baxter v Commissioners of Taxation (NSW) High Court held in "D'Emden v Pedder" that the salary receipts of federal government employees were not subject to state stamp duty. "Wollaston's case" was cited in argument, as that the applicability of the principle in "McCulloch v Maryland", to the Constitution was negatived by the decision of the Privy Council in "The Bank of Toronto v Lambe". In response Griffith CJ stated "The decision in the case of "The Bank of Toronto v Lambe" merely amounts to this-that under sec. 92 [of the Constitution of Canada] the Provinces have the power of direct taxation". The judgement of the Court,