The labor journal. [volume] (Everett, Wash.) 1909-1976, 1920-07-30
Sovereign State
May "Sell Wood

municipal fuel yard may be the
basis for a new line of United States
supreme court decisions, according
to some observers who have noted
the courts recent action in sustain
ing North Dakota laws passed by the
Nonpartisan League Legislature of
that state.
The municipal fuel yard case came
before the court three years ago. The
Maine legislature had given cities
and towns the right to establish fuel
yards for the purpose of selling wood,
coal and fuel at cost to inhabitants
The act defined the term Eat cost"
as meaning without financial
profit"
The Maine supreme court upheld
the act and the decision was APP
pealed to the United States su-
preme court on the ground that the
establishment of a fuel yard is not
public purpose and that taxation, to
maintain one would be taking prop
erty without due process of law
which is a violation of the four
teenth amendment to the federal
constitution.
The same contention was made by
North Dakota citizens who appealed
the Nonpartlsan League laws to the
| United States supreme court.
| In unfolding the municipal fuel
yard law the United States supreme
court ruled that there is no vital
difference in city maintaining a
central heating plant that furnished
heat through pipes to homes and
delivering coal direct to the users
home.
at seems illogical" said the
court, "to hold that a municipality
may relieve it's citizens from the
rigor of cold if it can reach them
by pipes or wires placed under or
above the highways, but not if it
can reach them by teams travelling
along the ideatically same highway
1t will be something of a task to
convince the ordinarily intelligent
citizen that an act of the legis-
lature authorizing the former is con-
stitutional but one authorizing the
latter is unconstitutional beyond all
rational doubt"
When the North Dakota Nonparti-
san League laws came before the
United States supreme court, the
court stated that the nearest ap-
preach to this question that was ever
presented to it was the Portland
municipal fuel yard case.
The North Dakota laws set new
mark in authorizing the state to
function in activities that have here
tofore been considered private bust
ness.
Under these laws a state COM
mission is authorized to establish a
state bank, to loan money on farm
land, to build homes and to estab-
lish state ware house, elevator
and flour mill system. The commits
sion is given sweeping powers to
manufacture and sell at prices set
by it all kinds of raw and manufac-
tured food products and by-products
and to operate markets and agen-
cies any where in America or in
foreign countries. The commission is
empowered to buy all necessary prop
erty or seize it by right of eminent
domain. This program is to be fin
anced by the state through taxation
In unfolding these laws, the su-
preme court distinguished between a
tax for private purpose and public
purpose. The court reaffirmed for
mer refusals to define the term "due
process of law" as contained in the
fourteenth amendment, and insisted
that definitions must be based on
each individual case
The North Dakota legislation, said
the court, twas adopted under the
broad power of the state to enact
laws raising by taxation such sums
as are deemed necessary to promote
purposes essential to the general
welfare of the people.
with the wisdom of such legis-
lation, and the soundness of the
economic policy involved, we are not
concerned. Whether it will result in
ultimate good or harm it is not
within our province to inquire.
"In many instances" continued