"Moreover, when it is necessary in order to prevent an evil to make a law embracing more than the precise thing to be prevented it may do so. The power of the legislature to regulate or prohibit acts which are in themselves innocent, as a complement to the regulation or prohibition of evils, was fully discussed and sustained in Purity Extract Co. v. Lynch (226 U.S. 192). Mr. Justice Hughes delivered the opinion of the Court: "It does not follow that because a transaction, separately considered, is innocuous, it may not be included in a prohibition the scope of which is regarded as essential in the legislative judgment to accomplish a purpose within the admitted power of the Government (Booth v. Illinois, 184 U.S. 425; Otis v. Parker, 187 U.S. 606; Ah Sin v. Wittman, 198 U.S. 500, 504; New York ex rel. Sils v. Hesterberg, 211 U.S. 31; Murphy v. California, 225 Ú.S. 623). With the wisdom of the exercise of that judgment the court has no concern; and unless it clearly appears that the enactment has no substantial relation to a proper purpose, it cannot be said that the limit of legislative power has been transcended. To hold otherwise would be to substitute judicial opinion of expediency for the will of the legislature, a notion foreign to our constitutional system. "Thus, in Booth v. Illinois (184 U.S. 425), the defendant was convicted under a statute of that State which made it a criminal offense to give an option to buy grain at a future time. It was contended that the statute, as interpreted by the State court, was 'not directed against gambling contracts relating to the selling or buying of grain or other commodities, but against mere options to sell or buy at a future time without any settlement between the parties upon the basis of differences, and therefore involving no element of gambling.' The argument was that it directly forbade the citizen 'from pursuing a calling which, in itself, involves no element of immortality.' This court, in sustaining the judgment of conviction, said: 'If, looking at all the circumstances that attend, or which may ordinarily attend, the pursuit of a particular calling, the State thinks that certain admitted evils cannot be successfully reached unless that calling be actually prohibited, the courts cannot interfere, unless looking through mere forms and at the substance of the matter, they can say that the statute enacted professedly to protect the public morals has no real or substantial relation to that object, but is a clear unmistakable infringement of rights secured by the fundamental law.' It must be assumed, it was added, that the legislature was of opinion that an effectual mode to suppress gambling grain contracts was to declare illegal all options to sell or buy at a future time;' and the court could not say that the means employed were not appropriate to the end which it was competent for the state to accomplish (id. pp. 429, 430). * "The same principle was applied in Otis v. Parker (187 U.S. 606), which dealt with the provision of the Constitution of California that all contracts for the sale of shares of the capital stock of any corporation, on margin, or to be delivered at a future day, should be void, and that any money paid on such contracts might be recovered. The objection urged against the provision in its literal sense was that the prohibition of all sales on margin bore no reasonable relation to the evil sought to be cured; but the court upheld the law, being unwilling to declare that the deep-seated conviction on the part of the people concerned as to what was required to effect the purpose could be regarded as wholly without foundation (id. pp. 609, 610).' Mr. Justice Hughes then discussed with approval the case of New York ex rel. Silz v. Hesterberg (211 U.S. 31), involving a New York statute which prohibited the possession of certain game during the closed season. The defendant was in possession of game which had been lawfully taken outside the State during the open season and had been brought into New York. It further appeared that the game were wholesome and could be distinguished from domestic game of the forbidden varieties. But the Court held that the legislature was the judge of the necessity or expediency of the measure adopted, pointing out also that the law tended to prevent the passing-off by dealers of domestic game under the claim that they were taken in another State. Mr. Justice Hughes continued, in the Purity Extract case: "It was competent for the legislature of Mississippi to recognize the difficulties besetting the administration of laws aimed at the prevention of traffic in intoxicants. It prohibited, among other things, the sale of malt liquors. In thus dealing with a class of beverages which, in general, are regarded as intoxicating, it was not bound to resort to a discrimination with respect to ingredients and processes of manufacture which, in the endeavor to eliminate innocuous beverages from the condemnation, would facilitate subterfuges and frauds and fetter the enforcement of the law. A contrary conclusion, logically pressed, would save the nominal power while preventing its effective exercise. The statute establishes its own category. The question in this court is whether the legislature had power to establish it. The existence of this power, as the authorities we have cited abundantly demonstrate, is not to be denied simply because some innocent articles or transactions may be found within the prescribed class. The inquiry must be whether, considering the end in view, the statute passes the bounds of reason and assumes the character of a merely arbitrary fiat." Tested by these considerations, the regulation of transactions off the exchanges, being necessary and proper to assure the maintenance of a fair and honest market. are clearly constitutional. RESOLUTION PASSED BY CLEVELAND COMMITTEE, on FLETCHER-RAYBURrn Bill, FEBRUARY 23, 1934 Resolved, That it is the considered opinion of the undersigned committee, appointed at a meeting of Cleveland business interests for the discussion of the proposed Fletcher-Rayburn bill purporting to regulate the activities of stock exchanges, but also containing many ill-considered and very drastic provisions for the regulation of industry itself, that the enactment of such legislation would directly so injuriously affect industry under the guise of stock exchange regulation that it would be very detrimental to industry as a whole, to the recovery of business, and to the reemployment of normal working forces; further Resolved, That a committee of not less than three members authorized to speak for Cleveland industry be sent to Washington to protest vigorously against the enactment of this bill. COMMITTEE ON THE FLETCHER-RAYBURN BILL George M. Humphrey, chaiman, president, M. A. Hanna Co., 12,000 employees. J. O. Eaton, chairman, Eaton Manufaturing Co., 4,962 employees. E. B. Greene, president, Cleveland-Cliffs Iron Co., 4,000 employees. J. E. Rogers, president, Addressograph Multigraph Corporation, 3,200 employees. Adrian D. Joyce, president, The Glidden Co., 5,100 employees. Fred A. Chapin, president, National Acme Co., 2,140 employees. Hiram S. Rivitz, president, Industrial Rayon Corporation, 3,400 employees. The undersigned endorses the foregoing resolution: The Aetna Rubber Co., president, 500 employees. S. T. Campbell. The Akron Rubber Reclaiming Co., J. B. Huber, president, 120 employees. The American Fork & Hoe Co., A. W. Ferguson, secretary-treasurer, 2,000 employees. American Ship Building Co., W. H. Gerhauser, president, 1,500 employees. The Apex Electrical Manufacturing Co., Geo. W. Kelsey, treasurer, 2,000 employees. The Atlas Bolt & Screw, and the Atlas Car & Manufacturing, S. D. Wright, president, 400 employees. The Austin Co., G. A. Bryant, Jr., vice president, 1,000 employees. The Bamberger-Reithal Co., S. Reinthal, secretary-treasurer, 350 employees. The Bassett Co., L. B. Bassett, president, 18 employees. The Bender Body Co., H. Bender, president, 500 employees. The Brown Fence & Wire Co., M. B. Sackheim, treasurer, 275-350 employees. The Bryant Heater Co., E. P. Bailey, Jr., secretary, 50–125 employees. The Byers Machine Co., C. J. Fulweber, assistant secretary and treasurer, 75 employees. The Canfield Oil Co., J. A. Jackson, treasurer, 508 employees. The Champion Rivet Co., W. J. Reiley, secretary-treasurer, 150 employees. The Chandler & Price Co., D. W. Frackelton, vice president, 250 employees. Chicago Pneumatic Tool Co., W. S. Callan, vice president, 450 employees. The City Ice & Fuel Co., H. W. Dunkle, secretary, 3,500 employees. The Cleveland Automatic Machine Co., A. L. Patrick, treasurer, 500 employees. The Cleveland & Buffalo Transit Co., P. J. Swartz, general manager, 600 employees. Cleveland City Forge Co., Ralph M. Coe, president, 250 employees. The Cleveland Cooperative Stove Co., James Mitchell, vice president, 450 employees. Cleveland Graphite Bronz Co., J. L. Myers, secretary, 1,200 employees. The Cleveland Hardware & Forging Co., Thomas R. Robbins, president, 400 employees. Cleveland Pneumatic Tool Co., L. W. Greve, president, 300 employees. The Cleveland Wire Spring Co., J. W. Campbell, president and treasurer, 200 employees. The Collinwood Shale Brick & Supply Co., H. C. Moatz, president, 75 employees. Columbia Axle Co., E. H. Parkhurst, president, 175 employees. The Corrigan, McKinney Steel Co., Donald B. Gillies, president, 3,400 employees. The Cricible Steel Casting Co., M. G. Tielke, vice president, 150 employees. The William Edwards Co., Charles A. Otis, president, 428 employees. ees. The H. C. Godman Co., F. A. Miller, president, 2,500 employees. The Grasselli Chemical Co., E. W. Furst, vice president, 4,100 employees. ees. The Grief Bros. Cooperage Co., H. E. Coyle, president. The Guarantee Specialty Manufacturing. Co., R. H. Wright, president, 90 employees. The Halle Bros. Co., Jay Iglauer, vice president and treasurer, 2,000 employees. The M. A. Hanna Co., G. M. Humphrey, president, 12,000 employees. The Wm. M. Hardie Co., Otto Grossenbacher, secretary-treasurer, 700 employees. Harris-Seybold Potter Co., N. L. Daney, treasurer, 534 employees. The Harshaw Chemical Co., W. A. Harshaw, president, 450–500 employees. The E. F. Hauserman Co., R. A. Hauserman, vice president, 225 employees. The Hertner Electric Co., J. H. Hertner, president, 40 employees. The Higbee Co., Asa Shiverick, president, 2,000 employees. The Hill Clutch Machine & Foundry Co., M. G. Firestone, treasurer, 150 employees. The Hende & Dauch Paper Co., Sidney Frohman, president, 2,365 employees. The Joseph & Feiss Co., Paul L. Feiss, president, 1,800 employees. The Kaynee Co., E. C. Seitz, vice president and treasurer, 950 employees. The Keller Knitting Co., W. A. Keller, president, 75 employees. The Kelly Island Lime & Transport Co., George J. Whelan, president, 1,000 employees. The S. Korach Co., Arthur Korach, secretary, 250 employees. The Lake City Malleable Co., J. H. Redhead, president, 200 employees. Medusa Portland Cement Co., J. B. John, president, 1,500 employees. The Murray Ohio Mfg. Co., C. W. Hannon, president, 340 employees. National Malleable & Steel Castings Co., Henry F. Pope, president, 6,200 employees. The National Screw & Mfg. Co., H. G. Alexander, president, 1,291 employees. |