Darweger v. Staats

153 Misc. 522, 275 N.Y.S. 394, 1934 N.Y. Misc. LEXIS 1795
CourtNew York Supreme Court
DecidedNovember 13, 1934
StatusPublished
Cited by6 cases

This text of 153 Misc. 522 (Darweger v. Staats) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Darweger v. Staats, 153 Misc. 522, 275 N.Y.S. 394, 1934 N.Y. Misc. LEXIS 1795 (N.Y. Super. Ct. 1934).

Opinion

McNaught, J.

The action is for a permanent injunction against the defendants, members of Divisional Code Authority, Division No. 3, Retail Solid Fuel Industry, to restrain such defendants from, interfering with the conduct of plaintiff’s business, fixing or attempting to fix the price at which he may sell his product within the State of New York, or instituting proceedings against him for violation of Code provisions.

The plaintiff is a so-called independent equipped coal dealer in the city of Binghamton. His coal is purchased in the city of Binghamton from truckers who purchase and transport the same from the State of Pennsylvania. All of plaintiff’s purchases and sales are made within the State of New York. The defendants, as the Divisional Code Authority, pursuant to provisions of the Retail Solid Fuel Industry Code, held hearings in a manner prescribed in the Code, declared an emergency existed under its provisions in the territory where plaintiff transacts his business, and established what are termed floor level prices. Under regulations adopted by the defendants as such Divisional Code Authority, [524]*524defendants purported to fix a price for all grades of coal, below which dealers are prohibited from selling their product. The price so fixed is in effect the price charged by so-called old fine coal company dealers and in .excess of the price at which the plaintiff has sold, and asserts he can with profit sell, coal at his equipped yard.

The Divisional Code Authority selected under the provisions of the Retail Solid Fuel Industry Code by the method adopted was composed and controlled by old line coal company dealers, competitors in business of plaintiff.

Manifestly, the enforcement of the order of the defendants will prevent plaintiff from conducting his business in competition with old fine dealers. In effect it means the destruction of the business of plaintiff. The order prohibits plaintiff selling his own merchandise at a price fixed by him and satisfactory to him. The proceedings by the Divisional Code Authority before promulgating its order No. 3-E, which fixed the floor level prices in Southern Tier trade areas, the reasons which it is claimed justified such order, and the authority for the acts of the defendants, have been discussed at some length. We do not consider it necessary to determine whether the acts were justified or were unreasonable. The motions before the court must be determined upon other grounds.

The questions presented by these motions involve a consideration of the National Industrial Recovery Act (U. S. Code, tit. 15, § 702 et seq.) and chapter 781 of the Laws of 1933 of the State of New York, commonly called the Schackno Act or the State Recovery Act. Widespread industrial depression and economic distress have created conditions in which remedies or nostrums foreign to our preconceived ideas of government have been adopted in a violent and unrestrained effort to obtain relief. With the laudable purpose sought to be attained all citizens are and should be in accord. Legislative declarations of emergency are relied upon to justify startling innovations and sustain unusual changes in our constitutional system of government. Whether such enactments, if they are sustained by the judicial branch of the government, will lead to the promised land of prosperity and plenty, or in a morass that will engulf all of our- institutions, only time and experience will determine.

It is not for the courts to pass upon and determine the wisdom of legislative enactments; that power is vested in, and that responsibility belongs to, the legislative branch of the government. Whether the enactment be wise or unwise, reasonable or unreasonable, just or unjust, is not for the court to determine. If the enactment is, under constitutional authority, within the power of the legislative branch, it must be sustained.

[525]*525No authoritative determination as to the power of the Congress to thus change the form of American institutions has yet been pronounced. Scattered decisions may be collated in which fervent and vehement approval alternates with judicial criticism, but no polar star guides to a definite conclusion.

The legislative power of the Congress has been abdicated more fully than in any previous enactments. Penal responsibility has been imposed for violation of the directions and regulations of administrative authority to an extent never before imposed. If such abdication of legislative power is within the authority of the Congress, then a co-ordinate branch of the Federal government created by the Constitution may voluntarily destroy itself and disrupt the American system of government. If such grant was merely to create administrative rules and regulations to effect and carry out the provisions and declared purposes of the enactments, many authorities sustain such provisions. If, however, a grant not merely to create administrative rules and regulations, but to enact and adopt legislation carrying criminal penalties, is constitutional, it must necessarily follow the power may logically be carried to the adoption of an act by the Congress to the effect that the President be empowered to adopt such rules and regulations as he may deem in the interest of the general welfare. The destruction will then be complete. Representative government will have ceased to exist. Benevolent despotism will be substituted in its place.

There has been a constant evolution of the doctrine that the declaration of emergency by legislative fiat justifies disregard, because of exceptional circumstances and the necessity of promoting the general welfare, of fundamental principles expressed in the Constitutions of Nation and State. While the limit of governmental power, as restricted by the Constitution, should not be transcended, the rule of construction was enunciated in the early days of the republic in the following language, viz.: “ But * * * the sound construction of the Constitution must allow to the national legislature- that discretion, with respect to the means by which the powers it confers are to be carried into execution, which will enable that body to perform the high duties assigned to it, in the manner most beneficial to the people Let the end be legitimate, let/it be within the scope of the Constitution, and all means which are appropriate, which are plainly adapted to that end, which are not prohibited, but consistent with the letter and the spirit of the Constitution, are constitutional.” (McCulloch v. Maryland, 17 U. S. 316, 421.)

It is to be remembered, however, that the supreme judicial authority in the nation, in days fraught with national peril, when con-[526]*526tinned existence of the Union was at stake, when unrest and emergency existed greater than today, uttered a solemn warning in words which cannot be misunderstood: “ The Constitution of the United States is a law for rulers and people, equally in war and in peace, and covers with the shield of its protection all classes of men, at all times, and under all circumstances. No doctrine, involving more pernicious consequences, was ever invented by the wit of man than that any of its provisions can be suspended during any of the great exigencies of government. Such a doctrine leads directly to anarchy or despotism," (Ex parte Milligan, 4 Wall. 2, 120, 121.)

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Bluebook (online)
153 Misc. 522, 275 N.Y.S. 394, 1934 N.Y. Misc. LEXIS 1795, Counsel Stack Legal Research, https://law.counselstack.com/opinion/darweger-v-staats-nysupct-1934.