The New York herald., 1921-03-09
RENTLAWSUPHE
BY APPEALS COURT
Private Contract Rights Must
Yield to the Public We'll
fare, Says Decision.
DISSENT BY M'LAUGHLIN
State Can Curb Profiteers Who
Practise Greed and Extor-
ton, Contends Opinion.
Special Despatch TO THE NEW YORK HERALD.
New York Herald Bureau.
Albany, March 4.


Albany, March 8.
The Court of Appeals handed down
decision to-day upholding the con-
stitutionality of the emergency rent
and housing laws passed by the last
Legislature to relieve the situation in
New York city, and ruling that pri-
vate contract rights must yield to
public welfare in any clear cut con-
fiict. The decision reverses the recent
ruling of the Appellate Division of the
Supreme Court, First Department,
which held that the Legislature could
right to dispossess at the expiration
OF the term of lease.
The opinion was written by Judge
Cutnbert w. Pound, with Chief Judge
Hiscock and Judges Hogan Cardoza
and Andrews concurring. Judge Nc
Laughlin dissented. holding that the
ground taken by the landlords was
correct.
The decision is a complete vindication
OF the laws, and affirns the supreme
right of the State to exercise it's police
powers over the rents and housing in any
critical situation. Judge Pounds opin-
ion states that the Constitution Is broad
and big enough to enable the State to
set aside contractual rights. Tho main
spring OF the rent laws is that no land
lord shall charge unreasonable rent nor
recover possession Of his property from
a tenant who pays reasonable rent. even
nfta ha - ,, 4ar ~ lar
The four constitutional objections
lodged by attorneys for the landlords
were that the laws denied them equal
protection. deprived them Of property
without due process OF law, interfered
with freedom OF contract and impaired
the obligation OF a contract.
On these points Judge Pound after
declaring the existence of a housing
shortage. said:
ITO uphold the right OF the landlord
to maintain ejectment would be to crack
the legislative design into fragments.
which would afford little protection to
the tenants In possession.
THE legislative or police power is
dynamic fancy. vague and underlined in
scope. which takes private property or
limits its use when great public needs
require, uncontrolled by the constitu-'
tional requirement OF due process. Either
the rights OF property and contract must
when necessary yield to the public ad-
vantage. or It must be found that the
State has surrendered one OF tho at
tributes of sovereignty for which gov
ernments are founded and made itself
powerless to secure TO It's citizens the
blessings OF freedom and to promote the
general welfare
THE distinction between the power Of
eminent domain and the police power IS
often fine. In the main 1t depends on
whether the thing Is destroyed or Is
taken over for public use. If property
rights are here invaded, in a degree.
compensation therefor has been provided.
and possession IS to be regained when
such compensation remains unpaid.
What is taken Is the right TO use ones
property oppressyely. and 1t is the de-
struction OF that right that is contem-
plated and not the transfer thereof to
the public use. The taking is therefore
analogous to the abatement OF null
sance or to the establishment Of build
ing restrictions. and is within the police
power.
The opinion holds that legitimate gov
ernmental authority ought to be able 10
protect nobjcctionablo tenants ready
and willing to pay reasonable rents, from
wholesale evlctons for tho further en-
richment OF profiteers who have brought
themselves 10 the notice Of the Legisla-
ture by their greed and extortion." This.
the opinion says. should be done without
subjecting landlords who have not Of
Tended and tenants who have no SUB
stantial grievance TO n restraint that a
class has invited by It's conduct.
Tho rule alike for State and nation"
says the decision. lis that private con-
tract rights must yield to the public WEI
fare when the latter Is appropriately de-
clared and defined and the two conflict.
but n the law is arbitrary. unreasonable
and not designed 70 accomplish a legiti-
mate purpose the courts will declare IL
invalid"