Evening star., 1935-03-13
Jurisdiction Limited to In
terstate Operations, U. S.
Court Declares.
APPEAL TO BE URGED
IN JERSEY DECISION
Company Victor in Fight Against
Hours, Wages and Other
Regulations.
By the Associated Press.

By the Associated Press.
NEWARK, N. j., March 13.-Fed-
eral Judge Guy L. Fake today rendered
a decision in which he declared the
national industrial recovery act is un-
constitutional in respect to its au-
thority to regulate intrastate business
The jurist handed down his opinion
in granting the Acme, Inc, OF Jersey
City an injunction restraining the
Government from enforcing the fab
ricated metal code regulating hours
of labor and wages and the payment
of code assessments. The action also
enioined the Government from indct-
ing or prosecuting the company for
failure to comply with the code.
Appeal to Be Urged.
United States District Attorney Har-
Ian Besson indicated he would recon-
mend to United States Solicitor Gen
eral Crawford Biggs that an immedi-
ate appeal of the ruling be taken.
I'VE can arrive at no other con-
elusion," Judge Fake said. than that
the recovery act is unconstitutional
because It attempts an unlawful dele
cation of legislative authority"
The recovery act" he added IN the
opinion, "and the incidental codes in
so far as they attempt to regulat the
hours Of labor. the fixing OF wages or
the furnishing of So called confidential
reports thereon are without sanction
under the Constitution and, therefore,
are void"
Judge Fake upheld the company in
its contention it could not be COM
PEELED to furnish the code authority
certified copies Of its pay roll.
He referred to a similar decision
given recently by Federal Judge Nields
in the Weirton Steel Co. case, point
ing out the scope of our inquiry
here has been painstakingly and fear
lessly considered"
Cites Weirton Ruling.
Judge Nialds' ruling in the Weirton
case" he said. has greatly simplified
our work and made it unnecessary to
hand down our practically completed
opinion"
Commenting on the N. r. A., he
said that whenever the issue is raised
as to the constitutionality of an act
of Congress the trial court is called
upon to exercise tremendous power.
Whether the conclusion of the court
be in the negative or the affirmative,
fnrNnc q ri1t intn motion
which may have a far-reaching and
all-important effect upon the main
tenance of constitutional government.
Such power must of necessity exert
sobering influence on the mind and
conscience of the court"
Judge Fake is a Republican and
was named to the Federal bench in
1928 by the late Calvin Coolidge.
The suit filed against the Govern
ment by the Acme Co. alleged the
concern does only an intrastate busi-
ness 1t charged that the recovery
act violated provisions in four sep
arate amendments to the Federal
Constitution.
Violations Are Charged.
It contended the act violated the
ninth and tenth amendments which
include provisions reserving for the
States the regulation of commerce
within their boundaries. The act vio-
lated the fifth amendment contain
Ing the provision private property
may not be confiscated without due
process of law, the company alleged,
and it violated the fourth amendment
providing against unreasonable search
and seizure Of property by giving to
the code authority power to inspect
plants.
Discussing the N. R. A, Judge Fake
ruled:
I'VE have labored in vain to con-
clude, that it was the intent of the
Constitution to pass to Congress the
regulatory authority over the local,
intimate and close relationships of
persons and property which arise in
the process OF manufacture, even
though they may in the broader
sense affect interstate commerce.
"If they exist at all. the powers
and authority attempted under the
recovery act in relation to contracts
of employment in manufacture come
within the police power of the sew
eral States. As such, they are ex-
pressly reserved to the State
unless. and until perchance an
amendment may revolutionize the re-
lation which the Federal Government