Shelby v. Second National Bank

19 Pa. D. & C. 202, 1933 Pa. Dist. & Cnty. Dec. LEXIS 426
CourtPennsylvania Court of Common Pleas, Fayette County
DecidedJanuary 24, 1933
DocketNo. 1488
StatusPublished

This text of 19 Pa. D. & C. 202 (Shelby v. Second National Bank) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Fayette County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shelby v. Second National Bank, 19 Pa. D. & C. 202, 1933 Pa. Dist. & Cnty. Dec. LEXIS 426 (Pa. Super. Ct. 1933).

Opinion

Hudson, P. J.,

Statement of the pleadings

On November 26, 1932, a bill of complaint was filed, asking for an injunction to restrain the defendant from disclosing to the Senate Investigating Committee any of the bank records of S. Ray Shelby, a Public Service Commissioner. A preliminary injunction issued as prayed for, which was duly served upon The Second National Bank of Uniontown, defendant. On December 1, 1932, at the time set for a hearing, defendant appeared by counsel in open court and filed a statement in which it is set forth that the bank is only custodian of said records and that the Senate Investigating Committee is the real defendant. On the same day the members of the Senate Investigating Committee, by coun[203]*203sel, appeared in court and were joined as defendants. The hearing was continued until December 9, 1932, at 10 a. m., at which time the parties appeared in court, and testimony was taken and arguments heard.

The question involved is the right of a committee of the Senate, investigating the Public Service Commission, to subpoena the bank records of S. Ray Shelby, a member of the Public Service Commission, against whom no charges have been filed.

Discussion

The Public Service Commission of our Commonwealth was created by the Act of Assembly of July 26, 1913, P. L. 1374, by what is known as the Public Service Company Law. The commission consists of seven members, one of whom is chairman of the board. The term of office is for a period of 10 years.

S. Ray Shelby, plaintiff, is a member of the commission. He was appointed to that position in 1918, and reappointed in 1928.

W. D. B. Ainey, chairman of the board, resigned August 2, 1932, after charges had been preferred against him. Emerson Collins, a member of the board who had been ill for many months and unable to perform the duties of the office, delivered his resignation to the Governor on August 1,1932, to become effective as of October 1st. His resignation was accepted and became effective October 1st.

The legislature of our Commonwealth met in extraordinary session on June 27, 1932, and continued in session until August 19th. While in session, the Honorable Gifford Pinchot, Governor of our Commonwealth, appeared before the Senate on August 10th and delivered an address in which he asked for a “full and thorough-going investigation of the system by which the public utilities have controlled the Public Service Commission.” We quote the following from his address:

“Rightly or wrongly, the belief has spread that the Ainey resignation was forced to prevent further exposure. It would constitute the severest indictment of the Senate of Pennsylvania if the Ainey resignation were allowed to prevent the fullest investigation, not only of the utilities from which the bribes came, but of any other utilities which may have had similar relations with any commissioner now in office or who has been in office during the last 10 years, at least.”

Nowhere in his address does the Governor mention the name of any public utility company or the name of any commissioner then in office.

On August 18th, the Senate of the Commonwealth adopted a resolution providing for a full and complete investigation of the relations existing between public utility companies and the Public Service Commission and the appointment by the president pro tempore of the Senate pf a committee of seven of its members to make such investigation. A committee was duly appointed and immediately began its investigation.

On November 16th, said committee issued a subpoena duces tecum, directed to The Second National Bank of Uniontown, to produce before the committee at Harrisburg on November 30th at 10 a. m., “all ledger cards, deposit tickets, loan records, and all other papers and records pertaining to the accounts of S. Ray Shelby and your transactions with him; also all contracts and leases for safe deposit boxes leased from you by S. Ray Shelby, together with all records showing visits to safe deposit boxes by S. Ray Shelby; all books, records, and accounts showing purchases and sales of stocks and bonds and other securities to or for the account of S- Ray Shelby; also all books, records, and accounts showing manner of payment to you by S. Ray Shelby for stocks, bonds, or other securities sold to him by you or purchased by you for his account; also all [204]*204books, records, and accounts showing manner of repayment of loans to you by S. Ray Shelby.”

A preliminary injunction was issued; testimony was taken; the case was argued, and the injunction continued.

We will discuss the reasons assigned why the injunction should be continued, in the order in which they are set forth in the bill of complaint and its amendment.

First: “There has been no showing whatever that the papers and records required to be produced, under said subpoena duces tecum, are pertinent to the pending investigation.”

It has been repeatedly held by our courts that in investigations of this kind the materiality of the evidence sought should appear. There was no testimony offered on the part of the'committee that there was anything in the records of the bank pertaining to S. Ray Shelby’s account which would be of any aid to the committee so far as future legislation is concerned. If the committee had knowledge of any public utility company or of any individual who had paid money to Commissioner Shelby with a corrupt intent, it would have been very easy for the committee to prove this fact. It would seem to us that the burden would be upon the committee to prove that the subpoena duces tecum was employed to obtain testimony for a legislative purpose, or that this should appear from the pleadings or the testimony.

In considering the reasons advanced why the injunction which issued should be continued, there is one thing which must be kept constantly in mind, and that is this — there have been no charges preferred against S. Ray Shelby. If charges had been preferred, we would have different questions confronting us.

Let us consider first the purpose which would justify the Senate in its investigation. There was only one legitimate object the Senate could have in ordering the investigation, and that was to aid it in legislating — that is, to secure evidence which would enable it to make, recommendations at the next meeting of the General Assembly as to remedial legislation on the subject in controversy. The appellate courts of our States and the Supreme Court of the United States have repeatedly held that this is the only purpose which would justify an investigation.

The case of McGrain v. Daugherty, 273 U. S. 135, is very much in point. A brief recital of the facts will enable one to better understand the ruling of the court.

Harry M. Daugherty became Attorney General of the United States March 5, 1921, and held that office until March 28, 1924, when he resigned. Late in that period, various charges of misfeasance and nonfeasance in the Department of Justice after he became its supervising head were brought to the attention of the Senate by individual senators, and made the basis of an insistent demand that the department be investigated.

A committee of five senators was appointed to investigate circumstances and facts and report the same to the Senate, concerning the alleged failure of Harry M.

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Bluebook (online)
19 Pa. D. & C. 202, 1933 Pa. Dist. & Cnty. Dec. LEXIS 426, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shelby-v-second-national-bank-pactcomplfayett-1933.