The New York herald., 1921-04-19
n. N.Y.RBNTALLAWS
VALID. IS DECISION
OF HIGHEST COURT
Measures Passed to Meet
Emergency Upheld in
Every Particular by
Narrow Margin.
STATE WITHIN RIGHTS
Action Establishes Prin-
ciple Legislatures May
Protect People From
Profiteering.
DENOUNCED BY MINORITY
Majority Ruling Called Step
Toward Socialism = Same
Views on District of
Columbia Cases.
DENOUNCED BY MINORITY
Special Despatch to THE NEW YORK HERALD.
New York Herald Bureau,
WashjuSton ID. c., April Is.

Special Despatch to THE NEW YORK HERALD.
New York Herald Bureau.l
Washington, ID. c., April 18.
The United States Supreme Court
to-day by upholding the emergency
housing laws Of New York State and
the District Of Columbia established
the principle that Stats Legislatures
and Congress can pass laws to protect
the people against rent profiteers dur
ing an emergency.
Both the rent laws were upheld in
every particular on the broad grounds
of the constitutional provisions of
eminent domain and the police power
of the States. The decision, con-
sidered one of the most far reaching
and important in years, revealed
sharp difference of opinion among the
Justices, both cases being decided by
a vote of to 4.
The four dissenting Justices-Chief
Justice White, Justices McKenna, Van
Devanter and Reynolds-denounced
the decision as a step toward Socialism
and wiping out Of the property guar
antees of the Constitution. The ma
iority-Justices Holmes. Day, Pitney,
Brandeis and Clarke-declared that
the Constitution gave the States right
to regulate contracts, such as leases,
when a grave emergency existed.
The approval OF the New York emer-
gency housing laws enacted in l9Zo 40
the result of n special session OF the
Legislature called by former Gov. Alfred
f. Smith for that purpose, was given on
an appeal from decision OF the united
States District Court for the Southern
District of New York, which upheld the
statutes. In the District Of Columbia
case, the local Circuit Court OF Appeals
had held unconstitutional the Ball rent
act. creating a commission to adjust
rents
Based on Police Powers.
The New York case was appealed by
the Marcus Brown Holding Company
against Marcus Feldman, Benjamin and
Alfred Schwartz, tenants. and Edward
Swami, as District Attorney Of New
York County.
Inc company SpuElll w nav
unconstitutional chapters 942 to s52, in
elusive, and chapters 1S1, 1s2. 13S. lS9.
1856. 1877 and 13s of the State laws OF
1920. 1t endeavored to obtain injunc-
tions restraining the tenants and the
District Attorney from interfering with
proceedings TO evict the tenants from
large apartment house and from COM
peIling the performance of certain serv-
ices.
In the majority opinion, Justice
Holmes. in substantiating the contention
that the laws were valid exercises OF the
police power of the States. argued that
since States have the right to limit the
height az buildings. regulate billboards.
protect public health protect watersheds.
prevent exorbitant rates Of interest and
control public utilities. the right TO
prevent extortlonate rents and protect
housing conditions must be upheld. The
state has power to impair contract obli-
cations and control them when the pub
lie interest requires. and this interest
was apparent because OF unusual hous-
ing conditions in both cases. the majority
held.
Housing Is a necessary OF life." Jus
tice Holmes said. These cases are
enough to establish tha, a public cx-
igency win justify the Legislature in re-
stricting property nghts in land to
certain extent without compensation. But
n 10 answer one ueed the Legislature
may limit the height of buildings, to
answer another II RAY limit the rent.
We do not perceive any reason for de-
nying the justification held good in the
foregoing cases TO n law limiting the
property right now IN question. IL the
public exigency requires It,"
strikes mt Rent Gougfng.
The decision clearly establishes the
right OF all States to enact similar
laws and to continue them during an
emergency. This emergency, the opinion
indicates, will end IN the official termi-
nation OF the war; but the laws may be
continued as long AS the emergency
which caused the statutes--prevalent
rent profitecring--cxists. The courts
under both laws, Justice Holmes pointed
out, stili have the .ast word In all rent
disputes.
The minority In the opinion by Justice
McKenna asserted that explicit provi-
sions OF the Constitution make the laws
invalid. lie said the laws were con-
trary TO every conception OF obligations
OF lessor and lessee ard were n blow at
constitutional guarantees OF the rights
OF property owners.
Justice McKenna, N n most emphatic
manner. said the law vas a step toward
Socialism. and opered the way TO all
sorts OF Government regulation OF pri-
waite business.
"Tha decision to-day marks the doom