Elting v. North German Lloyd

Background

A steamship company brought a German traveler to the United States on February 14, 1924. The traveler had a U.S. consular visa and said he was coming temporarily on business to collect a small inheritance, but arrived without money or a return ticket and lacked documents proving the claim. Immigration officials found him inadmissible under the immigration quota and ordered him deported. The Secretary of Labor imposed a statutory fine on the carrier under §6 of the Quota Act and refused to remit it. Lower courts ruled for the carrier; the case reached this Court.

Reasoning

The Court asked whether the carrier could rely on the consular visa and whether the Secretary had abused his discretion in refusing to cancel the fine. The Court explained that §6 forbids bringing any person who is not admissible under the Act, regardless of how they embarked. A consular visa notation did not guarantee admission, and the carrier had a duty to exercise reasonable diligence before sailing. The Secretary has discretionary power to remit fines if inadmissibility could not have been discovered by reasonable inquiry, but here substantial evidence supported the Secretary’s refusal to remit. The Court reversed the lower courts’ rulings.

Real world impact

The decision makes carriers responsible for verifying passengers’ eligibility beyond relying on visas alone and exposes them to fines and repayment of passage when quotas bar entry. The Secretary’s remission power remains but is limited by the carrier’s duty to make reasonable inquiries before departure.