Evening star., 1934-10-24
Roads Long and United
Fight on Law CIimaxed
by Success.
MEASURE TOPPED LIST
OF NEW SOCIAL REFORMS
Decision Holds Congress Exceeded
Powers-First Defeat of
Administration Here.


as the Roosevelt administration first
major experiment in social legislation,
was declared unconstitutional today
by Chief Justice Alfred A. Wheat of
the District Supreme Court.
This decision marks the first defeat
for the administration in a suit
brought in tbs jurisdiction to test the
constitutionality of its legislation
The petition was brought by 1874 of
the Nations leading railroads, who
contended the act requiring them 10
pay millions of dollars annually into
a retirement fund violated their con-
stitutional rights, because Congress
exceeded its powers under the COM
merce clause of the Constitution in
passing the legislation.
Power Held Exceeded.
After a general discussion Of the
purposes of the act, Chief Justice
Wheat's opinion said:
when the act is examined in de-
tail. however, I find it contains pro-
visions, which, in my opinion. we're
beyond the power of Congress and
which render it unconstitutional.
In the first place the act is un-
constitutional, because it extends its
provisions to persons not engaged in
interstate commerce"
In arguing this point, Attorney E A.
McInnis, appearing for the railroads.
pointed out they employ thousands of
persons in mining work, upkeep and
repair of equipment, clerical duties
and so forth, who are in no sense en-
gagged in interstate commerce.
The retirement act" the opinion
continued, "confers its benefits upon
all employees of any company to which
it relates without regard to distinction
between interstate commerce, intra-
not constitute commerce at all"
The opinion pointed out that it ap-
pears from the record in this case that
some 100000. approximately one-fifth
of all the employees of the plaintiffs, do
not work in interstate commerce, or in
work so closely connected Herewith
as to be part thereof.
1t was also pointed out that the
Long Island Railroad Co., whose lines
are wholly within the State of New
York; the Illinois Central Railroad. and
the New York Central Railroad have
large number of employees engaged
solely in intrastate service.
The opinion further declared it had
been proved at the hearing that four
of the railroads affected have property
valued at approximately S86,0O00 900,
which the Interstate Commerce Com
mission had classified as non-carrier
1T seems to me that Congress ex-
ceeded its power to regulate interstate
commerce when it attempted to make
all employees of the plaintiffs benefi-
ciaries under this act. making no
distinction between those engaged in
interstate commerce and those not so
engaged" the opinion said.
Benefits Held Too Broad.
He also pointed out that section l
of the act includes as employees en-
titled to its benefits every one who
has been in such service within one
year before the enactment of the act.
The evidence showed about $4,000
men left the service of the railroad
during the year before the date of
enactment, and that of this number
approximately 10000 probably will
not return to the railroad service.
Some of these men were dismissed
for the good of the service" Justice
Wheat said. Il can see no reasonable
relation between giving these men the
benefits of the act and the regulation
of interstate commerce.
1t was also shown that the statute
provides that upon the re-employ-
ment by any carrier of any man
previously in railroad service, all of
this prior service is to be counted as
part of the service emitting him to the
annuity. The evidence tended to
show there are today over a million
persons with that possibility
To require the plaintiffs to con-
tribute huge sums of money to be
devoted to the payment of pensions
based upon services long since COM
pleted and fully paid for seems to me
to take their property without due
process of law. I am constrained,
therefore. to hold that the act is un-
constitutional
Quotes Roosevelt.
The natural reluctance which
judge feels. when compelled to hold
an act of Congress unconstitutional
is in this case somewhat tempered
by the fact that the act seems not
to be satisfactory even to some who
favor it in principle and purpose.
When the President gave mis- approval
he made statement explaining his
action in which he said. among other
things. Decision on this bill has been
difficult. The bill, although much i'm
proved in its final form, is still crudely
drawn and will require many changes
and amendments at the next session
Of Congress.
The acc provided for creation of
retirement fund under supervision of
the Roailroad Retirement Board. This
fund was to be created by payments
from the railroads and employees, the
former paying two-thirds of the total.
The railroads contended this would
cost them 6o,o0O 900 a year for the
first four years, increasing thereafter,
and that such a heavy drain on their
,,,i0hf iy,