I UNITED STATES REPORTS VOLUME 285 CASES ADJUDGED IN THE SUPREME COURT AT OCTOBER TERM, 1931 From February 16, 1932, to and including April 11,1932 ERNEST KNAEBEL REPORTER UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1932 For sale by the Superintendent of Documents, Washington, D. C. - Price $1,50 Buckram JUSTICES OF THE SUPREME COURT DURING THE TIME OF THESE REPORTS 1 CHARLES EVANS HUGHES, Chief Justice. WILLIS VAN DEVANTER, Associate Justice. JAMES CLARK McREYNOLDS, Associate Justice. LOUIS D. BRANDEIS, Associate Justice. GEORGE SUTHERLAND, Associate Justice. PIERCE BUTLER, Associate Justice. HARLAN FISKE STONE, Associate Justice. OWEN J. ROBERTS, Associate Justice. BENJAMIN N. CARDOZO, Associate Justice.1 2 WILLIAM D. MITCHELL, Attorney General. THOMAS D. THACHER, Solicitor General. CHARLES ELMORE CROPLEY, Clerk. FRANK KEY GREEN, Marshal. 1 For allotment of the Chief Justice and Associate Justices among the several circuits, see next page. 2 On February 15, 1932, President Hoover nominated Benjamin N. Cardozo, Chief Judge of the Court of Appeals of New York, to succeed Mr. Justice Holmes, retired. The nomination was confirmed by the Senate on February 24, 1932. The oath was administered in open court, and he took his seat upon the bench, on March 14, 1932. in SUPREME COURT OF THE UNITED STATES Allotment of Justices It is ordered, That the following allotment be made of the Chief Justice and Associate Justices of this Court among the circuits, agreeably to the acts of Congress in such case made and provided, and that such allotment be entered of record, viz : For the First Circuit, Louis Dembitz Brandeis, Associate Justice. For the Second Circuit, Harlan Fiske Stone, Associate Justice. For the Third Circuit, Owen J. Roberts, Associate Justice. For the Fourth Circuit, Charles Evans Hughes, Chief Justice. For the Fifth Circuit, Benjamin N. Cardozo, Associate Justice. For the Sixth Circuit, James C. McReynolds, Associate Justice. For the Seventh Circuit, Willis Van Devanter, Associate Justice. For the Eighth Circuit, Pierce Butler, Associate Justice. For the Ninth Circuit, George Sutherland, Associate Justice. For the Tenth Circuit, Willis Van Devanter, Associate Justice. March 28, 1932. IV PROCEEDINGS IN MEMORY OF CHIEF JUSTICE TAFT.1 Members of the Bar and officers of the Court met in the court-room, on December 13, 1930, at 10 A. M.2 On motion of the Solicitor General, Mr. George W. Wickersham was chosen as Chairman and Mr. Charles Elmore Cropley as Secretary. On taking the chair, Mr. Wickersham said: “ Gentlemen of the Bar: We are met here today to pay tribute to memory of a great lawyer and judge who during a period of nearly nine years occupied the exalted office of Chief Justice of the United States. From John Jay to Charles E. Hughes, almost every Chief Justice has had a record of distinguished political activity and public service before his elevation to the highest judicial position. Our Chief Justices always have been primarily statesmen, besides having achieved distinction at the bar or on the bench. Mr. Taft was the only one who also had been President of the United States. His entire life was devoted to public service. In such leisure as the exactions of official life allowed, he was a student and teacher of the law. He was largely instrumental in reorganizing and revitalizing the Cincinnati Law School, and during his term of service as U. S. Circuit Judge he made time to administer the office of Dean and lecturer on the law of real property in that school. He was an enthusiastic son of xSee 280 U. S. in, v; 281 U. S. v. 3The committee on arrangements for this meeting were: Mr. Solicitor General Thacher, Chairman, and Messrs. George W. Wickersham, George E. Hamilton, Charles Warren, and John Spalding Flannery. v VI WILLIAM HOWARD TAFT. Yale University, and upon his retirement from the Presidency of the United States in 1913, he accepted a professorship of Constitutional Law in that institution. When the United States entered the world war in 1917, the only place the government of the hour found for the services of this distinguished statesman and jurist was that of co-chairman of the War Labor Board. Mr. Taft accepted that comparatively humble post and devoted to its problems the same earnest and efficient capacity he had given to the offices of Solicitor General and Circuit Judge of the United States, Civil Governor of the Philippine Islands, Secretary of War and President of the United States. “ His apointment as Chief Justice in 1921 enabled him to round out his public career in a position for which by nature and training he was peculiarly fitted. He brought to that office rare qualities of learning, experience, insight, industry and temperament, and the record of his service in the Court will compare favorably with that of any other of the illustrious men who have filled that exalted position. Even a brief reference to the Chief Justice would be incomplete without referring to his unusual love of mankind, his toleration, the complete absence of resentment or rancor against wrongs done to him, and his keen sense of humor. More than any man I have ever known he obeyed the precepts of the Sermon on the Mount to love one’s enemies, to bless them that curse you and to pray for them which despitefully use you. “ It was these qualities which made him so widely beloved throughout this nation during the last twenty years of his life. The people knew and loved him. His appointment to the Supreme Court gave them a new appreciation of that institution. It was no longer a mere intellectual abstraction. It became to them a body of men of which their friend Taft was the head, and they knew that no part of the government over which he presided could fail in sympathy with the common man, his daily needs, his simple homely problems. Others will speak more in detail of his record. My friendship WILLIAM HOWARD TAFT. VII with him extended over a long period. I had the privilege of serving in his Presidential Cabinet: I admired him as a public servant, I loved him as a man. He lived his life * 1 in simpleness, in gentleness, in honor and clean mirth.’ ” A committee3 appointed by the Chair brought in the following minute and resolutions, which, after hearing the addresses hereinafter noticed, were duly adopted: RESOLUTIONS The members of the Bar of the Supreme Court here assembled have met to express their profound regret at the death of William Howard Taft, tenth Chief Justice of the United States, and to record their high appreciation of his conspicuous, faithful and devoted service to his country. They have adopted the following Minute: William Howard Taft was born in the city of Cincinnati, Ohio, September 15, 1857. He was graduated with distinction at Yale University in 1878 and at the Cincinnati Law School in 1880. He was called to public service within a year after his admission to the bar, first as Assistant Prosecuting Attorney of Hamilton County, Ohio, and then as Assistant County Solicitor. In 1887, he was appointed by Governor Foraker to succeed Hon. Judson Harmon as judge of the Superior Court of Cincinnati. Three years later, in 1890, he was appointed by President Harrison Solicitor General of the United States. After two years service in that office, he was ap 9The gentlemen of the committee were: Messrs. Elihu Root, John W. Davis and Charles A. Boston, of New York; Frederic W. Mansfield and Bentley W. Warren, of Massachusetts; George Wharton Pepper, of Pennsylvania; William Cabell Bruce, of Maryland; William L. Frierson, of Tennessee; Thomas W. Gregory, of Texas; Newton D. Baker, Joseph S. Graydon and Andrew Squire, of Ohio; Walter L. Fisher, of Illinois; Charles W. Bunn, of Minnesota; William V. Hodges, of Colorado; Garret W- McEnemey, of California; and Frederic D. McKenney, J. Harry Covington and Chauncey G. Parker, of the District of Columbia. VIII WILLIAM HOWARD TAFT. pointed Circuit Judge of the United States for the Sixth Judicial Circuit. His three years service in the Ohio state court had given Mr. Taft not only an insight into the interest and importance of the judicial office, but had awakened in him a love of the judicial function which deeply marked his character and colored his entire future career. He threw himself with ardor into the varied work of a federal circuit judge, which at that period required him to sit in courts of first instance, at law and in equity, and even on the criminal side, as well as to participate with his associates in the appellate work which the Evarts Act of 1891 devolved upon the newly created Circuit Courts of Appeals—a jurisdiction which in a large and important class of cases was final. By his learning and industry, his keen sense of values, his broad human understanding and his appreciation of the supreme importance of the administration of justice, Judge Taft soon established a high reputation as one of the ablest members of the federal judiciary. In the year 1896, Judge Taft, in connection with Judson Harmon, Lawrence Maxwell and others, reorganized the Cincinnati Law School, adopted the Harvard case-book method of teaching, and started it upon a career of enlarged activity. He accepted the position of Dean, as well as lecturer on real property law, and discharged the duties of both those positions, until his resignation from the bench in 1900. When the termination of the war with Spain left the United States with the responsibilty for the future of the Philippine Islands, President McKinley called upon Judge Taft to head a commission of distinguished Americans to proceed to those islands, study the conditions prevailing in them and make a report with recommendations as to the future relations of the Government of the United States to those islands and their people. There was little in this assignment which appealed to a federal judge devoted to his judicial work and ardently believing that the administration of justice was the supreme concern of mankind. But WILLIAM HOWARD TAFT. rx the appointment was tendered him by the President as a call to public duty, and such an appeal never was made to him in vain. At the conclusion of the work of the Philippine Commission, Mr. Taft was appointed first Civil Governor of the Islands, serving in that capacity until February 1st, 1904, when he was appointed Secretary of War in the Cabinet of President Roosevelt, from which he resigned in June, 1908, because of his impending nomination for the Presidency, to which he was elected in November of that year. Space is lacking here for an appraisal of the value of the distinguished public service rendered by Mr. Taft as Civil Governor of the Philippines, as Secretary of War or as President of the United States. But it is peculiarly appropriate to this occasion to note that few Presidents, if any, have been called upon to appoint so large a number of federal judges as he, and by none was a higher standard of learning and personal character required in his nominees. During his four years of the Presidency, he selected five Associate Justices and one Chief Justice of the Supreme Court of the United States. The choice of the Chief Justice gave him more anxious thought than any other. Departing from precedents, he nominated to the Chief Justiceship an Associate Justice of the Court, Edward D. White, of Louisiana, who also was a Democrat and a former Confederate soldier. This nomination was promptly confirmed by the Senate and met with universal approval on the part of the bar and the people of the country. It had been Mr. Taft’s greatest ambition himself to become Chief Justice, and in selecting Judge White for that position, he was putting another man into the only post in the Government he had ever really yearned to fill. On June 30, 1921, President Harding appointed Mr. Taft Chief Justice to succeed Chief Justice White, who had died a month earlier, and on the retirement of Chief Justice Taft himself, very shortly before his death, President Hoover appointed as his successor Charles Evans Hughes, whom President Taft X WILLIAM HOWARD TAFT. had appointed an Associate Justice of the Supreme Court in 1910 (and who had resigned to accept the Republican nomination for the Presidency in 1916). Mr. Taft is the only American in our history who was the head of two of the three equal and coordinate branches of our Government. But the bench was his career of predilection, and he brought to the office of Chief Justice devotion to and enthusiasm in its work, as well as the experience of his long, useful and varied life in the public service. Aside from his strictly judicial work, the two outstanding events in the history of the Court during his incumbency are (1) the passage of the act which greatly limited the number of appeals as of right to the Supreme Court from the final decisions of the Circuit Courts of Appeals, substituting for the right of appeal a discretionary power of review by writ of certiorari; and (2) the enactment by Congress of a law authorizing the construction of a building in which to house the Court and its offices, and the passage of appropriations adequate for the construction of a dignified and beautiful structure, the selection of a site and the preparation and approval of the plans for the building. To the securing of both of these measures and the planning of the new court building, the Chief Justice devoted much thought and energy, appearing in person before the appropriate Congressional Committees to fully present all the reasons which had made him an advocate of these measures. His work on the Court as reflected in his opinions speaks for itself. The number of opinions he wrote was surprisingly large, and the vigor, clarity and sureness of touch which they express demonstrate his unquestioned title to a place high in the ranks of the leaders in the American Judiciary. This brief sketch of the Chief Justice would be incomplete without an allusion to those personal qualities which endeared him to many people of high and low degree throughout the land. In the truest sense of the word he was a great humanitarian, feeling the keenest sense of sympathy and interest WILLIAM HOWARD TAFT. XI in all that concerned men of all sorts and conditions. He truly loved his fellows. He had compassion even for the erring. He found something good in everybody, but no mere sentimentality ever clouded his judgment or stayed the impetuous vigor of his condemnation of dishonesty or mere pretense. Not less characteristic than his broad sympathy was his genial and rescuing sense of humor. Sentiment balanced by humor produced in him a rare sanity of judgment and added to his great gifts of character and intellect the charm of a gracious and winsome personality. It is now Resolved, That the Bar of the Supreme Court of the United States do hereby record their high appreciation of the long record of devoted and effective service rendered by William Howard Taft to the people of the United States in the many public employments to which he was called and especially in the exalted office of Chief Justice of the United States. Further Resolved, That the Attorney General be asked to present these resolutions to the Court and to request that they be inscribed upon its permanent records. And that the Chairman of this meeting be requested to transmit a copy of the resolutions to the family of the late Chief Justice, together with the assurance of the sincere sympathy of the Bar in the great and irremediable loss they have sustained. In presenting the resolutions to the meeting, Mr. Andrew Squire spoke of the great progress of the world in the seventy-two years of Mr. Taft’s life; of the remarkable opportunities thus opened to him; of his early entry into public office; and of the incessant demands made upon his energy and ability, for the public service. Reviewing this career briefly, Mr. Squire affirmed that Mr. Taft, by his character and work, had achieved an outstanding position throughout the world, as one of the world’s great leaders. In the perplexities of these changing times, it was well to stop and reflect on such a life as XII WILLIAM HOWARD TAFT. Mr. Taft’s—beloved by all who knew him—indeed by people everywhere—for his noble, generous and loving human qualities. The Honorable Arthur C. Denison, United States Circuit Judge for the Sixth Circuit, spoke as representative of the Circuit and District Judges. He recalled how Judge Taft, on March 17, 1892, soon after the Circuit Courts of Appeals became fully organized under the Act of March 4, 1891, was appointed to be the junior of the two Circuit Judges in the Sixth Circuit and became within a few months the presiding judge. On that court Judge Taft served for eight years. He wrote 200 opinions of the court, four separate opinions and only one dissenting opinion. These are to be found in volumes 51-101 of the Federal Reporter. During this entire period the old Circuit Courts were continued; they “were the trial courts for most of the civil cases; and the Circuit Judge could and did hold the Circuit Court frequently. The appellate work was not in those days crowding; Judge Taft enjoyed trial work, and held trial terms in many of the larger cities of the circuit. Thus he became known to the bar of his circuit, from Lake Superior down through Michigan, Ohio, Kentucky and Tennessee, as no other Circuit Judge had been before or has been since. In this nisi prius work also, important opinions by him were prepared as carefully and reported as fully as those in the Circuit Court of Appeals. The one of these eventually best known, though it was not the first of its kind, became the leading federal case on strike injunctions. It was with reference to this case that he later made his well known comment: ‘ To be known as the inventor of government by injunction is not a valuable political asset.’ “ In 1892, the Circuit Courts of Appeals were an experiment. They took over from the Supreme Court a large part of its federal appellate jurisdiction. The first few years of operation would justify or condemn the experiment. It is fair to say that in these early years, no one WILLIAM HOWARD TAFT. XIII of those courts did more than that of the Sixth Circuit, under Judge Taft’s leadership, to establish them in the public confidence. Its opinions—and, in large part, his opinions—touched every field of general litigation, as well as bankruptcy, admiralty and patents. For the patent law and its application Judge Taft displayed an unusual aptitude, and in that line many of his opinions of this period, both in the Circuit Courts and on appeal, have come to be generally accepted guides along the right road. “Having had this part in the trial and proof period of these courts, and in laying their foundation, it must have been with particular pleasure, 25 years later, that he took the chief part in completing the structure, and seeing the Act of February 13, 1925, vest in them nearly all the appellate jurisdiction which a defeated party in the federal courts can invoke as of right. “As the next outstanding feature of his relationship to our judicial family, I see his unflagging interest in the selection of judges. Probably no man ever had as great a total of influence upon the judicial personnel. While Circuit Judge he was hearty in supporting, or outspoken in opposing, those suggested for appointment in his circuit; while Secretary of War his advice was freely given and largely followed; while President he felt in extreme degree his duty—as a sacred duty—of making the best possible selections; and as Chief Justice, he let no merely technical canon of propriety prevent him from using his influence in what he thought the right direction. He often frankly said that his most distressing and heartbreaking experiences in public office were those instances in which mediocre or unfit judicial appointments were compelled by the exigencies of politics, or by the requirements of senatorial courtesy. On no other subject did I ever know his optimism to fail; on this subject he was dissatisfied with the present and afraid of the future. “ His latest contact point with us was in the Judicial Conference. This was created by the Act of September XIV WILLIAM HOWARD TAFT. 14, 1922. The idea was largely, or wholly, his. He presided over seven of those meetings, hearing reports from or concerning each of the district and appellate courts, discussing and advising on the best methods, and shaping the Conference Reports. The senior circuit judges came to look forward to these annual meetings with him as a helpful part of the year’s program; and we have shared his strong hope that it would develop into a real force for the betterment of our judicial system. “ Others have spoken, or will speak, more fully of his rare union—in my experience, unequalled union—of those qualities of character, mind and temperament which brought to him, in each of his successive spheres of action, the high respect and esteem of his associates in that sphere, and of the great body of the impartial and thinking public; but underlying all—and more important to his memory than all—were the impulses of his great heart. No finer and truer thing has been or can be said than is found in the letter from the Supreme Court judges upon his resignation (280 U. S. v). They speak of ‘ your golden heart, that has brought you love from every side—your spirit that has given life an impulse that will abide.’ . . . He truly loved his fellow men. Therefore they loved him, and therefore it becomes, not trite praise, but simple fact, to say that upon the roll of the federal judges of our day, his name leads all the rest.” Mr. Elihu Root said: “Mr. Chairman: It was in this Supreme Court room, in the very place where I now stand, that I met Mr. Taft for the first time. He was then the young Solicitor-General and we were opposed in the argument of a cause in this Court. In the course of that case began an acquaintance which afterwards ripened into intimate and affectionate and loyal friendship. “I do not think any one can appreciate any account of his character and service without keeping in mind his powerful and compelling personality. By this the signifi WILLIAM HOWARD TAFT. xv cance and effect of all his qualities were raised to the nth power. ’ “ It has always seemed to me that there were four things determining his course in life. One was that he had an almost religious reverence, based upon firm conviction, for certain fundamental principles upon which the American experiment in self-government has rested. I think he inherited this from his father, who in his time played a great part in the government of our country as a lawyer and diplomatic officer and cabinet minister. His son was born and bred to the convictions upon which the Declaration of Independence and the Constitution of 1787 are based, and he never wavered in that faith. “A second thing to observe is that he was by nature essentially a judge. He had a strong clear mind which readily reached definite and certain conclusions, and he had decision of character. But the way in which his mind naturally worked was to hear both sides before deciding. His instincts were for the judicial mode of action. That is the way he was built and it was always difficult for him to break away from that mode. “ It followed from his judicial make-up that it was difficult for him to adjust himself to many of the duties of executive office. He did not like to make those swift ex parte decisions which, whether right or wrong, are so frequently necessary for an executive. It followed also from his judicial instincts that it was difficult for him to adjust himself to the thoughts and feelings and methods of political life in a party sense. When he was thinking about public affairs he himself was not in the picture at all. A multitude of personal interests so potent in political affairs would naturally not present themselves to his mind. On the other hand, a multitude of ways in which political power is acquired or enlarged would naturally not occur to him. Accordingly, his work in the Presidency was hard work, while his work in the Court was easy and congenial. This accounts to a great degree for that extraordinary incident of his life—his amazing comeback after his defeat for re-election to the Presidency in 1912. He was such a good 137818°—32-----II XVI WILLIAM HOWARD TAFT. loser, he accepted his defeat with such kindly philosophy, with such cheerful freedom from resentment* or reserve, that he won universal admiration and friendship which continued to the day of his death. “A fourth characteristic was one which rounded out his judicial quality. That was his broad and active human sympathy. He really liked and was interested in men, women and children. Wherever he went his dominating presence diffused a sense of genuine sympathetic interest. He was a strong and noble man and he was a dear fellow— a lovable fellow. Alas, that his glowing personality should be soon 1 hid in Death’s dateless night.’ ” Mr. William Cabell Bruce, spoke particularly of 11 Taft, the Man.” “ In every moral and social sense, he was, by the common consent of his time, one of the very best of men. His walk was on the high places of the earth, but he was singularly free from all the vices and infirmities of character, which are so often associated with such a walk— arrogance, conceit, vanity, selfishness, callous or negligent disregard of the gracious proprieties, courtesies and charities, which, after all, constitute the true dignity, beauty and charm of human intercourse. I have never met any individual whose every thought, word, and deed was more deeply colored than his by the spirit of human love in all its highest manifestations. He was an affectionate brother, a tender husband, a devoted father, a true and steadfast friend. Good nature, kindness, benevolence, sympathy, affection, radiated out from him as if from some great orb, full of genial light and warmth. I can not believe that he ever did a mean, or an ignoble, or an unworthy, thing in his personal relations with his fellow creatures, or ever failed to respond to a genuine call of good feeling. There was a tie of sympathy between him and the lowliest thing that breathed. I can not conceive of a man or woman, however humble, or a child, however timid, that would not instantly have been put at ease by a smile or a kind word from him. His nature was too WILLIAM HOWARD TAFT. XVII generous and tolerant to countenance sectional prejudice, partisan rancor, or sectarian bigotry, and I like to think that one of the happiest moments of his public life was when he availed himself of an opportunity to strike a triple blow at all those hateful things by appointing to the Chief Justiceship of this Court, Edward Douglass White, a Confederate soldier, a Democrat, and a Catholic. If any man was ever estranged from him, and did not become reconciled to him, it was only because he was too unforgiving himself to reciprocate forgiveness. As we all know, some of the decisions of William Howard Taft, as a Circuit Judge, were bitterly resented by organized labor, but it affords me no little pleasure, today, to recall the fact that, only a few years ago, I heard Samuel Gompers, the President of the American Federation of Labor, tell, in a public address, how, a few days before, Chief Justice Taft—that charming man, Gompers termed him—had met him casually on a railway train, advanced towards him, with a smiling face, and grasped his hand, exclaiming, as he did so: 1 How are you, my dear old enemy? ’ “ He is gone! and we may well believe to a sphere where his loving nature is universal. He is gone! and, to borrow a poetic thought from Matthew Arnold, the night, in evernearing circle, weaves its shade about us, who were his contemporaries, and still survive him. But one thing is certain. As long as we shall survive him, we shall deem it a high privilege to have enjoyed the companionship, at times, of such an able, upright, faithful, and famous public servant, such an exemplary citizen, such an admirable, amiable, and captivating man; such an ornament, in every respect, to human nature, as William Howard Taft.” Mr. William Marshall Bullitt spoke briefly of Judge Taft’s decisions, commenting particularly upon Penn Mutual n. Mechanics Savings Bank, 72 Fed. 413; United States v. Addyston Pipe & Steel Co., 85 Fed. 271; American Foundries v. Tri-City Council, 237 U.S. 184; Truax v. Corrigan, 257 U. S. 312; Stafford v. Wallace, 258 U. S. 495; Wisconsin Railroad Commission v. Chicago, B. <& Q. R. Co., XVIII WILLIAM HOWARD TAFT. 257 U. S. 563; Dayton-Goose Creek Ry. Co. v. United States, 263 U. S. 456; Ex parte Grossman, 267 U. S. 87; Coronado Coal Co. v. United Mine Workers, 268 U. S. 295; Child Labor Tax Case, 259 U. S. 20; Hill v. Wallace, 259 JI. S. 44; and Myers v. United States, 272 U. S. 52. The speaker called attention to the perfect impartiality of Judge Taft’s attitude towards capital and labor. “He was scrupulously careful of the rights of labor to strike; but, with equally great force, he denied both the right of capital to combine to restrain trade and monopolize business, and of organized labor to coerce, by boycott, intimidation or violence, the non-union worker or the business man who would not submit to their demands for the closed shop.” “He delighted in maintaining his association with practicing members of the bar. While ever kind and thoughtful in his relations with them, he insisted upon the maintenance of the highest professional ideals, which were reflected in two of his late opinions: Weil n. Neary, 278 U. S. 160, and Harkin v. Brundage, 276 U. S. 36. “ Only those who practiced before him while he was a circuit judge in the Sixth Circuit can appreciate the affectionate regard in which he was held by the bar throughout the four States of Michigan, Ohio, Kentucky, and Tennessee—a feeling which rallied their almost unanimous support to his campaign for the Presidency.” Following is a letter sent to the Solicitor General by Hon. Robert S. Marx, the last of the Judges of the Superior Court of Cincinnati, which went out of existence November 30, 1925: November 28, 1930. Hon. Thomas D. Thacher, Solicitor General of the United States, Washington, D. C. Dear Mr. Thacher: I wish to acknowledge the notice of the meeting of the Bar of the Supreme Court of the United States to take appropriate action in memory of the late Mr. Chief Justice Taft. I regret that I can not be present to testify to the great service rendered by Judge Taft as a member of the Superior Court of Cincin WILLIAM HOWARD TAFT. XIX nati. I was the last Judge of this great Court, upon which Judge Taft began his judicial career. In my office there is a copy of the Bible upon which Judge Taft was first sworn as a Judge. I find on the flyleaf these words: “ The old Bible on which all the Judges of the Superior Court had been sworn into office was consumed in the Court House fire. “ On his retirement by resignation March 7, 1887, Judge Harmon presented this Bible to the Court, having first used it in administering the oath of office to his successor Judge William Howard Taft, who was the first to assume the office in the new Court House. “ March 7, 1887. William H. Taft again sworn theron May 7, 1888. Full term.” The name of the Judge is in his own handwriting as are the names of the other eminent members of the Court, which included Alphonso Taft, father of William Howard Taft, and later Attorney General of the United States and Minister to Russia; Stanley Matthews, later United States Senator and Justice of the United States Supreme Court; Judson Harmon, later Attorney General of the United States and Governor of Ohio; Joseph B. Foraker, later Governor of Ohio and Senator of the United States; Edward F. Noyes, later Governor of Ohio and Minister to France; George Hoadley, later Governor of Ohio; William Y. Gholson, later Judge of the Supreme Court of Ohio; Stanley Merrill, later Judge of the Supreme Court of Ohio; Smith Hickenlooper, at present Judge of the United States Court of Appeals; and many other distinguished jurists. The opinions of Judge Taft as a member of the Superior Court of Cincinnati rank alongside of the opinions of his father as a Judge of the same court and are still cited as landmarks of Ohio law. In delivering the valedictory of the Court, November 30, 1925, Governor Harmon said: “ Its decisions were published separately in three series of reports, and have often been cited as authority in the highest Courts of the country . . . Besides its unusual eminence as a judicial tribunal, partly no doubt because of it, the personnel of the Court has been rich in contributions to both State and Nation in other important fields of service. There is hardly one, if there be any, from XX WILLIAM HOWARD TAFT. those of President, Chief Justice, Ambassadors, Senate, Governors down, to which it has not supplied men who won distinction there.” On the same occasion, Judge Taft, the Chief Justice of the United States, paid the following tribute to the Court upon which his father and upon which he began their judicial careers. Judge Taft said in part: “ The Superior Court will cease to be on Monday, November 30, upon the expiration of Judge Marx’s term . . . Beginning with the new constitution and the inauguration of the new code of procedure, the Court took its place in the judiciary of the country and acquired a reputation reaching quite beyond its local jurisdiction. The personnel of the Court at the outset, consisting of Judges Bellamy Storer, Wm. Y. Gholson and Oliver Spencer, was one that was certain to give its judgments distinction and importance. And after these came a long line of distinguished lawyers and leaders of the Cincinnati Bar . . . and of the country. It seems to have been, too, a school of statesmen. I am very sorry that it is going out of existence ... it has had a most honorable and unique history, and all its members, I am sure, cherish with pride having sat on it.” Wm. h Taft. Thus, the career of William Howard Taft began as a great member of a nisi prius Court, many of whose members seem to have been men of destiny. As a former Judge of that Court and as a member of the Bar of the Supreme Court of the United States, who was privileged to know and love William Howard Taft, I send these flowers, plucked from his judicial service of nearly fifty years ago, to lay upon his shrine. Very truly yours, Robert S. Mabx. A pamphlet, published by the Committee, contains in full the addresses above mentioned and the eulogies in Court that follow. There) also will be found: a message addressed to Mrs. Taft by Hon. Orestes Ferrara, Ambassador of the Republic of Cuba, on behalf of his Government and People, and joined in by Señora Ferrara; resolutions adopted by the House of Representatives of the United States, March 10, 1930 (281 U. S. vi); a tran WILLIAM HOWARD TAFT. XXI script of memorial proceedings at a special session of the United States Circuit Court of Appeals for the Sixth Circuit, held at Cincinnati, on March 11, 1932, at which Judge Arthur C. Denison presided and Joseph Wilby, Esq., of the Cincinnati bar, and Judge Denison delivered addresses4; resolutions adopted by the bench and bar of the District Court of the Canal Zone, Balboa Division, Hon. James J. Lenihan, D. J., presiding; a eulogy delivered at a session of the Supreme Court of Porto Rico, by its Chief Justice, Hon. Emilio del Toro; extract from the minutes of the District Court for the Judicial District of Ponce, Porto Rico, Hon. Angel Acosta presiding; a message on behalf of the Supreme Court of Texas, signed by Hon. C. M. Cureton, Chief Justice; resolutions adopted by the General Assembly of the State of Rhode Island; resolutions adopted by the Senate of the Commonwealth of Kentucky; resolutions of the Senate and General Assembly of the State of New Jersey; a tribute from the Bar Association of the City of Cincinnati ; resolutions of the Buncombe County Bar Association, Asheville, North Carolina; resolutions of the Governing Board of the Pan American Union; resolutions adopted by delegates of the Chapters of the American Red Cross in their Annual Convention, and resolutions of the Board of Incorporators of the American Red Cross; resolutions adopted at the annual meeting of the Massachusetts Society of Mayflower Descendants, in which is set forth Mr. Taft’s lineal descent from Francis Cooke, a passenger on the Mayflower; a resolution of the Board of Assistants of the Society of Mayflower Descendants in the District of Columbia; resolutions adopted by the President and Fellows of Yale University; a tribute from Mr. Taft’s Class of 1878, Yale University; memorial verses entitled “ Great Heart,” by Mr. Henry C. Coe of that Class; a copy of a memorial address delivered in the Mur 4 All of the superior courts sitting at Cincinnati were represented, namely, the federal Circuit Court of Appeals and District Court; the Ohio State Court of Appeals; the Courts of Common Pleas of Hamilton, Hancock and Washington Counties. All of their judges were present except two or three, who were absent unavoidably. XXII WILLIAM HOWARD TAFT. ray Bay (Canada) Protestant Church, by Mr. Albert Chapin.8 6“The formal presentation to this Church of a Memorial to Mr. Taft who was associated with it for many years makes it fitting to glance at the past. Nearly forty years have elapsed since Mr. Taft first came to Murray Bay. At that time Murray Bay was an undeveloped resort. Those who came here found a spacious land of woods and waters, a mighty river, a bay never at rest, a climate which spared them the visitations of torrid heat, a sense of remoteness and calm. Charmed by the beauty of the scene, the comfort, the serenity of the life, they came again. Others followed, and in increasing numbers, until presently Murray Bay ceased to be a resort in any special or limited sense, and became a community. “It was not an ordinary community. The Dominion and the States conspired to build it up. All were drawn here by the attractions of the region. Impelled by a common purpose, and with deliberation, they were here gathered together. Such a community was sure to be characterized by intelligence, discernment, discrimination. Among its members were men of distinction, families of culture and social charm. “ Nothing could have been more felicitous in the life of Mr. Taft than that he should find himself a member of such a community. For Mr. Taft was possessed of an unbounded capacity for friendship. We can imagine such a quality lost or wasted; but here this community, endowed as it was, disclosed a singular, a striking, fitness to recognize, to welcome, to appreciate, and to reciprocate Mr. Taft’s gift and genius for friendship. “ Then there ensued the phase in the social life of Murray Bay with which we all aré familiar. Between the community and Mr. Taft, there was established a warm, rational, sure, affection rarely found at any place or time, admirable in itself, gathering strength with the passage of the years, defightful in its manifestations, winning and captivating as it developed in various forms. His birthday in his later years became an event. With him we may well believe the depth of feeling was rooted in the days when Murray Bay was primitive; and if we may unveil the recesses of the heart, he found in it the joy of the Happy Warrior as portrayed in the verses which he loved . . . “ For the activities of his life, as we all know, were displayed upon a broad, an exalted plane; and yet, no matter with what lustre his name may have been illumined, no matter what distinction or achievement should be placed to his credit, nothing was nearer or dearer to him than the affection of his friends in Murray Bay. And today that affection finds its final expression in this Memorial.” WILLIAM HOWARD TAFT. XXIII Supreme Court of the United States Monday, June 1, 1931. Present: The Chief Justice, Mr. Justice Holmes, Mr. Justice Van Devanter, Mr. Justice McReynolds, Mr. Justice Brandeis, Mr. Justice Sutherland, Mr. Justice Butler, Mr. Justice Stone, and Mr. Justice Roberts. Mr. Attorney General Mitchell addressed the Court as follows: " May it please the Court: During the December recess of this Court members of its Bar assembled here to express their profound regret at the death of William Howard Taft, tenth Chief Justice of the United States, and to make a permanent record of their high regard for his devoted public service. That gathering included many men, themselves distinguished for public service, lifelong friends of the late Chief Justice, who paid eloquent and loving tribute to his memory. A minute was prepared, reviewing the principal events of his career, and the following resolutions were adopted: [Mr. Mitchell then read the Minute and Resolutions already set forth {ante, p. vii) and continued:] “ In obedience to those resolutions I am here to present them and ask that they be entered in the records of the Court. “ Chief Justice Taft was my good friend, and I am grateful for the tradition which gives to the office I hold the high privilege of representing the Bar on this occasion. “ The only man to hold the two greatest offices in the gift of the American people, he had a public career unparalleled in its variety, with great distinction as a teacher, a colonial administrator, and executive, but it is XXIV WILLIAM HOWARD TAFT. fitting in memorial exercises by the members of the profession that he loved, and for the archives of this Court, that we speak chiefly of his service to the Court and to the cause of justice, and first of that part of his work recorded in the official reports. “ During his service as Chief Justice the Court delivered fifteen hundred and ninety-six (1,596) opinions. Oneninth of that number is one hundred and seventy-seven. He delivered two hundred and fifty-three opinions for the Court, or one-sixth of the total. The nature of the cases and the labor required in each would have to be examined to judge accurately of his relative efforts, but he did his share. “ This is not the occasion to review his judicial opinions at length, but a study of them reveals these things: His public life and experience as an administrator and executive had developed a wisdom and common sense which are disclosed in these writings. His opinions are of the kind which are useful to lawyers. They not only decided the cases presented but they are charts for the future. The style is simple and direct, and he never clouded his thought by self-consciousness in expression. His judgments disclose prodigious energy expended in study and research. “ In assigning cases to members of the Court for preparation of opinions he gave to himself at least an equal share of those dull ones which were interspersed with the important matters before the Court. He seemed to take a special interest in patent and trade-mark cases. He had an unusual facility in that field, and wrote many fine opinions in important patent litigation. It is in constitutional law that his greatest judicial work was done. Of his two hundred and fifty-three opinions seventy dealt with important constitutional questions. That in the Myers case, settling a controversy as old as the Union, respecting the President’s exclusive power of removing executive officers, alone would mark him a great constitutional lawyer. The opinions he delivered from this WILLIAM HOWARD TAFT. XXV bench, together with two hundred and four others, rendered during his service as a United States Circuit Judge, form an enduring monument to his high judicial qualities. “ Beyond his performance of the routine tasks of a Chief Justice is other service for which we should be grateful. “When he began his work here as Chief Justice the Court was eighteen months behind in disposing of the cases before it. He took a leading part in devising and procuring the passage by Congress of the Act of February 13, 1925, which gave the Court a wide discretion to decide what cases should be brought before it for review; and with that change in procedure as a starting point he and his associates set about the task of bringing the work up to date, with such determination and driving force that at the end of his service as Chief Justice, in February, 1930, the business of the Court was practically current; and with the completion of that task during the past year it may no longer be said that appeals to this Court are a means of delaying justice or allowing criminals to postpone punishment. Under his leadership this Court has set an example to the courts of the land, and brought home to the profession that it should.no longer be taken for granted that courts must always be behind in their work. “ During his incumbency Congress enacted the laws authorizing the construction of a building to be occupied by the Court and its officers. He had largely to do with that and gave constant thought and effort to obtaining the necessary appropriations, acquiring the site, and above all in seeing to it that the building when completed shall be a dignified and beautiful structure. This project was dear to his heart, and we regret that he did not live to see the fulfillment of his efforts. The new Supreme Court building when completed will itself be a memorial of one of his services to the Court. “ He had much to do with the enactment of the law authorizing the Judicial Conference presided over by the Chief Justice and attended by the senior circuit judges XXVI WILLIAM HOWARD TAFT. of the ten judicial circuits, which annually considers the operation of our Federal judicial system for the purpose of bringing about administrative and legislative changes to increase efficiency in the administration of justice. “ By his influence for a high standard in judicial appointments he rendered inestimable service to the cause of justice. As President he appointed five Associate Justices and one Chief Justice of this Court and many judges of the other Federal courts. He spoke of this Court as the chief bulwark of the institutions of civil liberty created by the Constitution, and viewed the appointment of members of the Court as the most sacred duty with which he, as President, was charged. During all his public career, in whatever office he held, his influence was exerted to elevate the standards for judicial appointments and to combat the pressure of political expediency for the selection of mediocre men. “ With all the other demands upon him, he took time to see old friends, to find new ones, to address gatherings of his fellow citizens, and to make those many public appearances expected of one in his position. His big, warm personality, kindliness, and humor, with that infectious chuckle of his, will never be forgotten by those who knew him. “ None of our institutions is so impregnable that popular confidence in and respect for it are not to be desired, and it is well for this Court and for the constitutional rights and liberties which it guards, each time there is chosen for Chief Justice one who in the public estimation is so preeminently fitted that his appointment is generally acclaimed. Chief Justice Taft had that fortunate distinction. What training for this high office could have excelled his? From early youth he was continuously in the public service. Within a year after his admission to the Bar he became prosecuting attorney of his county, then judge of a Superior Court. Forty-one years ago, in this very spot where I now stand, he commenced his service for the Nation, as Solicitor General of the United WILLIAM HOWARD TAFT. XXVII States, and, with but a short interlude, he continued in the Nation’s service until he ended it, again in this room, as Chief Justice of the United States. From Solicitor General to United States Circuit Judge, then president of the Philippine Commission, civil governor • of the Philippine Islands, special representative of his Government on delicate diplomatic missions, Secretary of War, and President. What a preparation for high judicial office ! When finally the opportunity came to place him on this Court, the whole Nation knew that he was qualified by character, learning, and experience. It trusted him and believed in his judicial qualities and in his big-hearted understanding of the problems of plain people. “ He had always yearned for service on this Court. His was a judicial mind. Political life was not congenial to him; but fate seemed bound to draw him' against his will into the field of political and executive action. It has been said that because of his judicial instincts it was hard for him to adjust himself to the thoughts and feelings and methods of political life in a party sense. Nevertheless, twice he regretfully refused appointment as an Associate Justice of this Court because he felt he could not desert administrative responsibilities. “ He made no secret of his interest in judicial work. Millions of his fellow countrymen knew of these things and sympathized with his aspirations. They held him in affectionate regard. When, in 1912, his party, torn by dissension, went down to defeat and he failed of réélection to the Presidency, his lack of bitterness or rancor, his smiling acceptance of his defeat, his frank and humorous public statement that he had retired from the Presidency with the full consent of the American people, met with instant response in the public mind, and from that moment, to an extraordinary degree, he found a place in the affections of the Nation. So, when he came at last to the great office of Chief Justice, he had the entire confidence and respect of great numbers of his fellow citizens. He held them to the end. His very presence on XXVIII WILLIAM HOWARD TAFT. this Court quickened public interest in its functions, strengthened it in the public regard, and helped to maintain it as the bulwark of the Constitution.” The Chief Justice responded: “ Mr. Attorney General: In receiving the resolutions which you have presented, we recognize that of all the tributes that have been paid to the memory of this eminent statesman and jurist, there could be none which would have been more highly prized by him than this tribute coming from the profession which he loved, in recognition of the distinction of his service to the cause which was nearest to his heart. “ Blessed by forbears who had achieved high repute by virtue of eminent talent and public spirit, it may be said that William Howard Taft was born to the purple of the highest advantages which our democracy affords. It was natural that his winning personality, giving play to marked ability, without suggestion of condescension, and distinguished by a nobility of character which scorned all that was sordid, base, or narrow, should have opened early the door of opportunity for public service. The gracious leadership of his youth in the circle of the university prefigured the position which he at once took at the junior bar; and after showing his mettle in his native city as prosecutor and judge, he came, at the age of thirty-three, to the office of Solicitor General of the United States. From that time until his death, he exemplified, in varied undertakings of grave responsibility, the finest type of public servant and enjoyed an increasing general esteem, until, in the closing years, after the wounds of political strife had been healed and the victories of a magnanimous spirit had been acclaimed, he was enriched beyond any man of his time with the wealth of a universal affection. “ In other places, there have been, and will be, appropriate appreciation of his services as the representative of his country in novel and important duties as executive head of the new government in the Philippines, and as WILLIAM HOWARD TAFT. XXIX Secretary of War and Chief Magistrate of the Republic. It is for us to recognize with gratitude, and with a deep sense of obligation and of loss, his labors in this Court, which brought his career to the fullness of illustrious accomplishment. “ Chief Justice Taft came to this service with a prestige which added weight to his pronouncements. But in the realm of lofty and conspicuous endeavor, success is never guaranteed by past achievements. It must be re-won daily, and even the highest prestige is put to fresh proof by the inescapable responsibilities of decision. Chief Justice Taft entered the Court with a distinguished reputation, but he left it with an even greater fame securely established. “ This was due to his special qualifications for judicial office, by virtue of training, aptitude and temperament. His training began, as I have said, almost as soon as he was admitted to the bar. When he took executive office at the age of forty-three, he had served nearly eleven years upon the bench, and for eight of these years as United States Circuit Judge. In that work he was indefatigable, not only in the Circuit Court of Appeals but at trial terms. One who knew intimately his labors in those days has said that Judge Taft became known to the bar of his circuit as no other circuit judge had ever been before or has been since. Nor was he content with the range of his judicial duty, but in his enthusiasm for legal study he took a leading part in law school organization and teaching. The learning and strength of his judicial opinions as a Circuit Judge made him widely known. His interest was not simply in the right adjudication of particular cases, but in jurisprudence, and he consistently labored in the interest of system and coherence. It was his effort to master the special subject in hand so as to utilize it in giving a chart for the future. A conspicuous instance of this is his opinion for the Circuit Court of Appeals of the Sixth Circuit in United States v. Addyston Pipe & Steel Co., delivered in 1898 (85 Fed. 271), containing what was, at that time, perhaps the most thorough expo XXX WILLIAM HOWARD TAFT. sition in the American reports of the law relating to restraint of trade. The judicial service of his young manhood was rendered with a zest which never abated. And his duties and experiences in executive office heightened for him the never-failing charm of the judicial career, by reason of its independence and impartiality, and its devotion to what he believed to be the paramount interests of the administration of justice. Having begun as a student of the law, he returned to his legal studies when released from executive responsibilities, and as a lecturer on constitutional law he completed his preparation for the great task to which manifest destiny was to call him. “ To Chief Justice Taft, the administration of justice was never an abstract conception, to be extolled in vain phrases and with but slight regard to changes in social conditions and to existing deficiencies. While holding in contempt the fanciful schemes with which the administration of justice in this country is threatened from time to time, he was ever pointing out its shortcomings and laboring for its improvement by practicable remedies. It was this concern which gave him a peculiar sensitiveness with respect to the qualifications for judicial office. He realized profoundly that the chief defects of the administration of justice lie in men rather than in method. A good judge, using the means at the command of an alert and informed mind, will find but rarely that he cannot force his way through to effective action. No duty seemed to President Taft more important than that of selecting federal judges. It was his special concern while he had the responsibility of appointment; and his solicitude continued and was constantly expressed after he became Chief Justice. It has fallen to but three Presidents since Washington to appoint a majority of the members of this Court. President Jackson appointed Chief Justice Taney and four Associate Justices. President Lincoln appointed Chief Justice Chase and four Associate Justices. President Taft appointed Chief Justice White and five WILLIAM HOWARD TAFT. XXXI Associate Justices. In no act of Mr. Taft’s career was his estimate of the requirements of judicial office, and his emphasis upon its proper independence of partisan considerations, more strikingly shown than in his appointment of Chief Justice White, of a different political faith, but who had represented upon the bench the highest standards of judicial conduct. And we are admonished of the rapidity of the changes in this Court, despite the apparent permanence afforded by the tenure of office, when we reflect that when Chief Justice Taft came to the bench ten years ago, only two of his appointees were still in service. “ No learning or information comes amiss to a Justice of this Court. Its members have been drawn from many fields of activity, and to its conferences are brought the wisdom derived from varied experiences in different parts of our land. By reason of the variety and importance of his previous official duties, Chief Justice Taft had in this respect an unusual equipment. The learning and industry of the judge were reenforced by the special knowledge gained in statecraft. He had abundant opportunity to apply this knowledge, and it was applied with judicial independence. As illustrating this, and also as exhibiting the quality of his judicial opinions, reference may be made to Balzac v. Porto Rico, 258 U. S. 298, and Yu Cong Eng v. Trinidad, 271 U. S. 500, dealing with fundamental questions relating to the administration of our insular possessions; to Stafford v. Wallace, 258 U. S. 495, sustaining and construing the Packers and Stockyards Act; to Ex parte Grossman, 267 U. S. 87, upholding the power of the Presi-• dent to pardon criminal contempts; and to Myers v. United States, 272 U. S. 52, sustaining the President’s power of removal. “ Because of the interest which he had shown throughout his public life in the problems affecting labor, Mr. Taft was appointed, when the United States entered the War in 1917, co-chairman of the War Labor Board. And 137818°—32—m XXXII WILLIAM HOWARD TAFT. when he came to this Court, no one had. a more intimate knowledge of labor conditions in this country or was more highly respected by all those concerned in industry, whether as employers, managers, or employees. There can be no doubt of his special interest in the decisions of this Court affecting labor questions, and upon these questions he delivered many of the Court’s most important opinions; as, for example, in American Steel Foundries v. Tri-City Central Trades Council, 257 U. S. 184; in United Mine Workers v. Coronado Coal Company, 259 U. S. 344 and 268 U. S. 295; in the Pennsylvania Railroad Company Cases relating to the function of the United States Railroad Labor Board, 261 U. S. 72 and 267 U. S. 203, and in Charles Wolff Packing Company v. Industrial Court of Kansas, 262 U. S. 522, with respect to the extent of the authority of the State in the regulation of wages in industry. “ Chief Justice Taft had also the technical knowledge and aptitude which gave him a special interest and authority in patent cases, and his skill in this difficult branch of jurisprudence is illustrated in such leading opinions as those in Eibel Process Company n. Minnesota & Ontario Paper Company, 261 U. S. 45, and Corona Cord Tire Company v. Do van Chemical Corporation, 276 U. S. 358. The Chief Justice always had an open mind with respect to the necessary adaptation of the authority of government, especially in relation to the broadening requirements of interstate commerce under modern conditions. This was conspicuously shown in the opinions that he delivered for the Court as to the power given to the Interstate Commerce Commission by the Transportation Act of 1920, among which may be noted, as of permanent importance because of the principles definitely established, those in the cases of Railroad Commission of Wisconsin v. Chicago, Burlington & Quincy Railroad Company, 257 U. S. 563, relating to the power of the Interstate Commerce Commission over intrastate WILLIAM HOWARD TAFT. XXXIII rates, and Dayton-Goose Creek Railway Company v. United States, 263 U. S. 456, with respect to the recapture provisions of the Interstate Commerce Act. To the growing volume of jurisprudence dealing with controversies between States, he made a notable contribution, especially in the case of the Chicago Drainage Canal, 278 U. S. 367, and in that of North Dakota v. Minnesota, 263 U. S. 365, which clearly laid down the essential bases for recovery by one State claiming injury by reason of operations conducted by another. I have not attempted the impossible task of making, upon such an occasion as this, a comprehensive survey or even a just estimate of the judicial service of the late Chief Justice, and I have sought to cite but a few of the many important opinions in which he touched every department of the law as laid down by this Court and which stand as imperishable memorials to his ability and conscientious labor. “ Chief Justice Taft had, as has well been said, ‘ an almost religious reverence’ for the fundamental principles of our system of government. To quote his own words: ‘ In the federal constitution there were embodied two great principles, first, that the government should be a representative popular government, in which every class in society, the members of which have intelligence to know what will benefit them, is given a voice in selecting the representatives who are to carry on the government and in determining its general policy. On the other hand, the same constitution exalts the personal rights and opportunities of the individual and prescribes the judicial machinery for their preservation, against infringement by the majority of the electorate in whose hands was placed the direction of the executive and legislative branches of the government.’ That was his confession of faith. And he had no sympathy with any attempt to undermine the fundamental protection of fair individual opportunity upon the assumption that social riches could be gained through individual impoverishment. He XXXIV WILLIAM HOWARD TAFT. stood emphatically for the limitations of government under the Constitution and was unwilling to see these limitations exceeded even when legislative phrases were used which would otherwise have been appropriate to the exercise of legislative power. This was conspicuously shown by his opinion in delivering the judgment of the Court holding invalid the Child Labor Tax Law (259 U. S. 20), as infringing upon the reserved power of the States. c To give any such magic,’ he said, as was sought to be attributed, ‘ to the word “ tax ” would be to break down all constitutional limitation of the powers of Congress and completely wipe out the sovereignty of the States.’ But he did not regard the country, as he expressed it, as ‘tied to the defects of the past or present,’ and he looked for a sure progress through discriminating and far-sighted legislators and through judges of broad vision but imbued with the spirit of the Constitution. “ Chief Justice Taft rarely dissented. In the multitude of cases to which you have referred, Mr. Attorney General, which were decided during his incumbency, I find but seventeen in which he expressed dissent, and in but three of these did he write the dissenting opinion. “ Deeply concerned with improvements in administration, the Chief Justice gave special attention to his own duty as administrator. Even the distinction of his contribution to the jurisprudence of the Court does not obscure, but throws into a stronger light, by reason of his versatility, his preeminence' in the executive department of its work. In the successful endeavor to end the delays which bring such a deserved reproach upon judicial procedure, he was ever a leader, and he would have been the first to recognize the able support which he received from his colleagues in this effort. It was not a vain attempt to bring the Court up to its work by a spasmodic activity, but the intelligent formulation of a plan which, receiving the sanction of Congress, has put the Court, we trust permanently, upon a basis by which it can keep WILLIAM HOWARD TAFT. XXXV abreast of the demands upon it. So long as we follow the example which he has set and avail ourselves of the opportunity which his leadership provided, the delays of justice will have no countenance or illustration here. “ But the Chief Justice was not content with expediting the work of this Court. He felt a special responsibility with respect to the entire Federal judicial system. Many years before he came to this bench, he had suggested that either the Supreme Court or the Chief Justice should have an adequate executive force to keep current watch upon the business awaiting dispatch in all the districts and circuits of the United States and to make a periodical estimate of the number of judges needed in the various districts and to make the requisite assignments. In a different manner, it was sought to attain the object he had in view by the establishment, in 1922, through his persistence, of the Judicial Conference of the Senior Circuit Judges, held annually, at which the Chief Justice of this Court presides, and which considers the needs of judicial service in the different districts and makes recommendations accordingly. This is an instrumentality of great value, and what it has accomplished and the promise of what it may achieve are due in the largest measure to the foresight and intelligent guidance of Chief Justice Taft. “No appreciation of the late Chief Justice can stop with appraisal of his intellectual power, or his juristic and executive achievements, or his moral worth. The glow of his warm heart shone through all his activities and irradiated all his associations. As with every virile character, he had ardent sympathies and strong dislikes. But he could not cherish ill-will or long harbor a sense of injury. He carried with him an invincible armor of kindliness against which the shafts of opponents had proved harmless. With him, service in the temple of justice was not an austere performance, with the ill-grace of an unnatural aloofness, but a necessary human endeavor, with XXXVI WILLIAM HOWARD TAFT. the dignity of lofty purpose, but pursued with a benignity and an affection for his fellows which made his presence in that temple a constant benediction. “ I should, in these last words, permit those to speak who were associated with him in this work, and I can do no better than to quote what they said to him upon his retirement: 1 You came to us from achievements in other fields, and with the prestige of the illustrious place that you lately had held, and you showed in a new form your voluminous capacity for work and for getting work done, your humor that smoothed the rough places, your golden heart that has brought you love from every side, and, most of all, from your brethren, whose tasks you have made happy and light.’ “ There are those here who have witnessed these memorial exercises in honor of three Chief Justices. In the midst of our efforts, engrossed with present demands, we are moving with a steady and inescapable progress toward the inevitable end. The figures of to-day, like those of yesterday, will soon be replaced, and the best endeavors, striking as they may be in their immediate aspect, will soon form but the background of another picture. Without illusion, and with steady will, we continue in our task, heartened by the exemplars of our faith, among whom no one has a more inspiring or abiding influence than that of the late Chief Justice.” PROCEEDINGS IN MEMORY OF MR. JUSTICE SANFORD.1 At the same meeting of the Bar of December 13, 1930, which honored the late Chief Justice {ante, pp. v et seq.)> a committee* 2 appointed by the Chair reported the following: RESOLUTIONS Resolved, That the members of the Bar of the Supreme Court desire to express their profound regret at the death of Edward Terry Sanford, late Justice of the Supreme Court, and to record their high appreciation of his life and character and of his conspicuous and faithful service to his country. He was bom on July 23, 1865, in the State of Tennessee. He graduated from the University of Tennessee, and then entered Harvard College, where he continued his studies; later on studying in European Universities and at the Harvard Law School. He became a member of the Bar of the State of Tennessee, and practiced at Knoxville and throughout the State until the year 1907, when he became one of the Assistant Attorneys General of the United States. After a year in Washington, he accepted the office of United States District Judge for the Middle and Eastern Districts of Tennessee. He served, as such District Judge, for fifteen years, with marked ability and with the love and respect of the Bar and community. He gave much of his time to the cause of education; was Chairman of the Board of Trustees of x8ee 281 U. S. m, v. 8 The composition of the committee was as stated ante, p. vii, excepting Mr. Squire. XXXVII XXXVIII EDWARD TERRY SANFORD. the George Peabody College for Teachers; also Trustee of the University of Tennessee. He was, at one time, President of the Alumni Association of the University of Tennessee, and later, President of the Alumni Association of Harvard College. In the year 1923, President Harding named him as Justice of the Supreme Court to fill the vacancy arising upon the resignation of Justice Pitney. He served on this Court with great distinction from the time of his qualification until his untimely death on the 8th day of March, 1930, at the early age of sixty-four. He had a personality of unusual charm, and was a most gifted speaker. He was a lover of literature and the arts; was widely read and deeply experienced in law and jurisprudence. He had ardent patriotism and a high sense of public duty. His work upon the Supreme Court was thorough, conscientious, and exacting, and had the high commendation of his associates and of the Bar. His death is his country’s loss, and is mourned by the great circle of his friends and associates both upon the Bench and at the Bar. Resolved Also, That the Attorney General be asked to present these resolutions to the Court and to request that they be -inscribed upon its permanent records, and that the Chairman of this meeting be requested to transmit a copy of these resolutions to the family of the late Justice with an expression of our sincere sympathy in their bereavement. In presenting the resolutions, Mr. Chauncey G. Parker said: u Mr. Chairman: Edward Terry Sanford was born in the year of the conclusion of the Civil War, of parents who had had little to do with the struggle over slavery, but was nurtured during his adolescent years in a community that was divided in its aspirations and efforts by that great struggle. For the loyalist to the North and the loyalist to the South both contributed to the atmosphere in which he grew up. He could not have failed EDWARD TERRY SANFORD. XXXIX to be influenced by both of these conflicting currents; and when his early education was done, it was not surprising that, having as he did the influences of a Northern father, and undergoing at the same time a Southern training, he should have aimed to be representative of both. No doubt his Northern blood turned his steps to Harvard College, and his Southern environment made him turn back to the South for his life work and career. As his mother was of Swiss descent, he received naturally an impulse to European travel and education. So after leaving Harvard he spent a year in Germany and France for instruction in languages and foreign economy, and incidentally for a visit to Lausanne to meet his kin belonging to his mother’s family. Then he returned to practice law in his native State. “ Knoxville lies in a broad valley between two important mountain ranges—the Cumberland and the Alleghanies. The Cumberland Mountains divide the State of Tennessee in half—to the east lies the territory tributary to Knoxville, and to the west the lowland reaching to the Mississippi. Between North Carolina and Tennessee lie the Alleghanies, the Great Smoky Mountains as writers call them, shrouded in forests and clouds and inhabited by grim mountaineers with the traditions of pioneer days. When forests were everywhere, the water courses were the only highways, and the Cumberland River helped pioneers to reach the West. Many of them stopped at Knoxville and made their homes there. Highways and railroads followed through the valley of the Cumberland and added importance to Knoxville, nestling in the valley, half way from Virginia and North Carolina to the lowlands. “ Sanford, with his Northern and European equipment, distinguished for general scholarship and in law, ambitious for distinction at the bar and in public life, took his place in this small community. How fascinating must have been the struggles before court and jury, the close touch with his fellowmen, and the excitements of the court trials, xl EDWARD TERRY SANFORD. all so different from the drudgery of a big office in a large city! How delightful the opportunity for study and thought, and how satisfactory the consciousness that he could aid the development of this growing community by his familiarity with the larger problems of the great world. “ For nearly a score of years he was active at the Bar, on the forum, and in the community. In 1907 President Roosevelt picked him for the Department of Justice and made him an Assistant Attorney General. A year later he was sent back to Tennessee as Judge of the United States District Court for Eastern and Middle Tennessee. He was then only forty-three. Opportunity of wealth at the bar was ready at hand. But he saw a greater opportunity in service to his country and he chose it. For in a Southern State, the office of Federal Judge is unique. Our Federal Government usually takes little part in the domestic affairs of its citizens. What little part it does take is emphasized in the Federal Court. The Federal Judge embodies the authority of the Federal law, and makes many decisions that must grate upon the customs of the people. Sanford’s work in the Federal Court brought him in close touch with the people of his wide circuit of jurisdiction. The handling of matters of excise, especially where mountaineers were concerned, required tact and firmness. Sanford’s clearness of vision, his sympathy for the offender, and his steadiness in upholding the law won the respect and liking of the people. He delighted in the close contact with his brother lawyers. He was a regular attendant at the meetings of the bar associations, state and national, of which he was a member. And his reputation widened beyond the confines of his State. He was Charter Member of the Board of Governors of the Knoxville General Hospital; Vice-President of the American Bar Association; President of the Alumni Association of the University of Tennessee; Vice-President of the Tennessee Historical Society; Doctor of Laws from the University of Cincinnati; Chairman of the Board of Trustees of George Peabody EDWARD TERRY SANFORD. XL! College for Teachers; Member of the Board of Trustees of the University of Tennessee; Vice-President of the Harvard Law School Association; President of the Harvard Alumni Association 1924; and LL.D, from Harvard University. “ In the year 1923 a vacancy occurred in the Supreme Court by the resignation of Justice Pitney. At that time Tennessee already was represented in the Court by one of its citizens. Sanford was a man of great modesty and was astonished when a movement began to make him Justice. His fine work as District Judge was not enough to give him a claim on that exalted position. But there was a national appeal in his selection; for he was a representative of the South, acknowledged as such by the public men and citizens of that portion of our country, and yet he was a Northerner by parentage and by education. He was a Republican, yet beloved by both Democrats and Republicans alike. Our late great Chief Justice, who had known him intimately while Sanford was in Washington, added his advice, and President Harding named him. Then followed seven years of strenuous and confining work, gruelling work as any of the Justices will tell you—and Justice Sanford did his share, receiving the confidence, respect and good will of his associates and of the bar. At Commencement, in June, 1924, Sanford presided over the meeting of the Alumni of Harvard College. All those present will remember with pleasure his charming and appropriate words. In the same year he presided at the proceedings celebrating the Ninetieth Birthday of President Eliot. In the summer of 1924 he joined the American Bar Association on its trip to Europe. He spoke at the Harvard Law School dinner in Lincoln’s Inn, and at the banquet given at the Guild Hall of the Lord Mayor and Aidermen of London. Later, at the reception given by the Bar of the City of Paris, in the Palais de Justice, to the members of the American Bar Association, he delivered an address in French. XLII EDWARD TERRY SANFORD. “ This is no place to attempt a review of Justice Sanford’s work in the Supreme Court from the lawyer’s standpoint. He was a sound Judge, most conscientious and painstaking in the study and consideration of every case. In the writing of his opinions he was never satisfied unless his words exactly and concisely expressed his thought. He was most careful to avoid any expressions which were not justified by the case before him, but his decision was alway comprehensive and thorough. A member of the Court, when requested by the writer to indicate Justice Sanford’s outstanding characteristics as a Judge, emphasized his conscientiousness, his industry, and his fidelity to the Court’s decisions. His work on each case was never complete until he had examined and considered every aspect of the case. He was tenacious of views once formed and would never yield them unless controlled by earlier precedents. His opinions run through twenty volumes of the reports and cover many fields, but constitutional questions were nearest to his heart. His ability in handling these questions is exhibited particularly in the Pocket Veto Case and the Gitlow case, the latter involving the power of the [State] Government to regulate liberty of speech and of the press. “In moments of relaxation, literature, music and art were his delight, but dearest to him of all was the companionship of his friends. “At the age of sixty-four he died, suddenly, in the full possession of his mental powers and with what seemed to be the promise of a long life before him. His wife and one daughter survive him. As a Knoxville writer said— no story of his life nor any tribute to his character would be complete which did not take into consideration the wisdom and sweetness of his wife’s companionship, and what her presence meant to him. His self-forgetfulness and devotion to her, inspired her to a recovery during a perilous and prolonged illness terminating happily just before his death. As this Knoxville writer said—■Few EDWARD TERRY SANFORD. XLIII lives have been more fully lived than his in all ambitions that were dreamed for it, or, in the full earnestness and honor with which high trusts were met and borne.’ “ Let me close with his own words spoken at Commencement : ‘We have gathered here from far and near; from the distant shores of the continent, and from the isles of the sea and the lands beyond. Youth and age have come; youth rejoicing in the splendor of Efe’s morning; and age, steadfast in the majesty of its noonday, serene in the tender glow of its evening sky. Since leaving College we have traveled many pathways; we have worked and played, and loved and lost. We have walked in the sunshine upon flowery meadows, and trodden the dark shores of adversity; have known life’s triumphs and its defeats; have drunk of its cup of happiness and of the bitter waters of its sorrow. We come back to-day to drink again the refreshing waters of life that spring from this sacred soil.’ “His was a blithe and valiant spirit.” Mr. William L. Frierson said: “ Mr. Chairman: There are those in this assemblage who are here to do honor to the memory of one known to them only after he became a Justice of the Supreme Court. But we in Tennessee, where he grew to manhood, practiced law, and later presided over the District Court, honor the man we knew as Ed Sanford. We would hold him in affectionate and admiring memory if he had never held official position. “ When it is said that one who has passed away has, in private and public life, been always clean and honorable and useful, has practiced law in perfect harmony with the best ideals of the profession, and has been an able and just Judge, what more need be said? All this I can and do say of Edward Terry Sanford after enjoying an intimate and lifelong friendship with him. “To say that one has sat in the seat of the mighty means but little if that is all that can be said. But it XLIV EDWARD TERRY SANFORD. means much to say that he has been equal to the responsibilities incident to the proper exercise of power. It is indeed a rich encomium to say that, when he occupied a place on the bench of the great Court which sits in this room, he was, in that exalted company, only among his peers. And that all this can truthfully be said of Mr. Justice Sanford is not to be gainsaid. “ The man for whom we mourn was not one of that host of Americans who have challenged our admiration because they rose from poverty and obscurity to distinction. He was well bom and accustomed all his life to the society of cultured people. His father, in his time and in the community in which he lived, was rated a wealthy man. The son’s lot was one of, at least, comparative luxury and he was given the best of educational advantages. “ While he did not have the handicap of poverty, he did have what I have sometimes thought is almost as great a handicap,—the seductive temptation to a life of ease and pleasure, made possible by affluence, rather than one of earnest effort. The qualities necessary to overcome either of these handicaps are ability, force of character, ambition, and energy. And these are the qualities which our friend brought with him when he came to the bar, gifted by nature, splendidly equipped by education, and possessed of an unbending integrity and a grim determination to make a name for himself. We who have known him well do not doubt that he would have won distinction even if he had been bom in lowly station. “ Let me give you a picture of him as I first saw him nearly forty years ago. He was but little beyond his majority and was glowing with the enthusiasm of ambitious youth. Accompanied by the charming bride, who is now his widow, he was attending, for the first time, a meeting of the Tennessee Bar Association. He had already attracted enough attention to give him a place among the banquet speakers. When he arose, erect, EDWARD TERRY SANFORD. XLV handsome, clear eyed, smiling, perfectly at ease, and unabashed in the presence of his elders, I thought, as he spoke, and still think, that I had never-seen a more splendid specimen of young manhood. His speech is the only incident of the meeting of which I have any distinct recollection. . . . “ From that day, it was freely predicted that there was a young man who would go far in his profession. And this prediction speedily came true. Very soon he was a recognized leader among the young members of the bar. And, before many years, he had taken high rank among the best lawyers of his State, was actively participating in much important litigation, and had made a record which richly merited the judicial honors that later came to him. “In 1908, his appointment as District Judge came without his seeking and, in fact, over his protest. I happened to be one of a delegation of lawyers who called on President Roosevelt to urge the appointment of another Tennessean. The President, as was his wont, did most of the talking and finally said: ‘ I tell you, gentlemen, the man I want to appoint is Ed Sanford, but he won’t take it.’ “ His reluctance then to go on the bench was genuine. He was Assistant Attorney General and much enamoured of his work. He had come to think that, for a lawyer of his age, the position of all positions was that of Solicitor General, and entertained the hope that, if he remained in the Department of Justice, that office might, in time, be his. He was still young and loved forensic contests. He also felt that a degree of isolation was the lot of a Judge. And this, he felt, would deprive him of some of the intimate contacts with his friends which meant so much to him. But he. finally yielded to the insistence of the President and began his judicial career as Judge of the Middle and Eastern Districts of Tennessee. “ He brought to his judicial duties a well trained mind, a broad culture, unusual learning in the law, the practical XLVI EDWARD TERRY SANFORD. experience that comes from a varied practice; and, above all, an insatiate love of justice. As a judge, he presided with a grace and dignity which commanded universal respect for his court. In the hearing of cases, he was patient and open-minded, and, in their consideration and decision, painstaking and thorough. At first his intense desire always to be right sometimes made him seem to be slow in coming to a decision and caused him to take so seriously his responsibilities that his friends feared for his health. But when he became accustomed to the duties of the bench and more confident of his judgment, he was all that could be desired of a Judge. His judgments were not less able and conscientious, but they were arrived at with less strain on himself. “ In the administration of the criminal laws he was Judge and not prosecutor. The Government was only a litigant in his court suing for justice. It stood on a parity with the humblest citizen it accused. The Constitution and laws of his country were to be obeyed and not evaded by judge, government, and accused alike. If a guilty man could not be convicted without doing violence to those constitutional rights which are for the protection of all citizens, this Judge wanted him acquitted. Prosecuting attorneys sometimes listened with misgivings to his careful definition of reasonable doubt and would have preferred that he touch more lightly on that subject. But, in his correct conception of judicial duty, it was not for him to refrain from giving proper emphasis to any right which belonged to a defendant. When all is said, he was a learned and eminently just Judge. “ His record on the District bench earned for him the place which marks the attainment of the American lawyer’s highest ambition. The time came when the President felt that the appointment to fill a vacancy on the Supreme Bench should go to the South. There W’ere many Judges and eminent lawyers who were eligible. And it is a tribute to Judge Sanford’s preeminence that EDWARD TERRY SANFORD. XLVII he was selected in spite of the fact that another Tennessean was already a member of the Court. His appointment was no mistake. The promise of efficient service which his record gave was amply fulfilled. He bore his full part in the labors of the Court. He does not suffer by comparison with the many great men through whose labors the Supreme Court has so interpreted the Constitution as to make our Government what it is today. “ Of Tennessee’s illustrious dead, the names of Catron, Jackson, and Lurton are conspicuous in the judicial history of the nation. And now she proudly adds, as entirely worthy of a place on that honor roll, the name of Sanford.” Mr. Charles N. Burch said: “ Mr. Chairman, Gentlemen of the Bar, Ladies and Gentlemen: . . . Never for one time did he forget the dignity and decorum which attached to his high office. Though the dignity of his office was at all times preserved, he was intensely human. He was extremely particular for the welfare of jurors and witnesses and insisted that a high degree of courtesy and consideration for others should be maintained in his court. Particularly helpful and kind was he to youthful and inexperienced practitioners. I have never known a judge to display the patience which he did or to indicate a greater desire to arrive at the exact truth of a controversy. “ During his term of district judge many important cases were tried before him, but to these I need not refer, as a permanent memorial of these cases is found in the reports. He had a very large criminal docket. Most of these cases ended in his court and these gave him the greatest concern. While at all times seeing to it that the majesty of the law was upheld, yet he was very sympathetic with the frailties of human nature and tempered justice with mercy. At times he would call disinterested members of the bar into his chambers and, after relating 137818°—32---iv XLVIII EDWARD TERRY SANFORD. the character of a criminal case in which a conviction had just been had, he would ask the advice of members of the bar as to what punishment should be inflicted, at the same time relating all mitigating factors. I think it was a positive pain to him to inflict punishment, though he never flinched from that duty when justice required it. As a district judge he was not only patient, industrious and able, but he wrote with unusual facility and his opinions are models of clearness. I recall that in his opinions he settled many questions of practice which were in doubt in Tennessee. . . . The esteem in which he was held by the bar of the State and by the people generally can perhaps best be illustrated by the unanimous endorsement which he received from the bar of Tennessee when a vacancy occurred upon the Supreme Court of the United States; and more unusual still was the unanimous endorsement of Judge Sanford by the Legislature of Tennessee, which happened to be in session when this vacancy occurred. A great majority of that legislature belonged to an opposite political party from Judge Sanford, and yet the worth and merit of the man were so well recognized that without hesitation a resolution was passed by the General Assembly of the State- endorsing him for a place on the Supreme Court of the United States. It was, indeed, a source of joy and gratification to the bar and the people of the State when he was appointed and confirmed. . . . “His record on the Supreme Court is written in the official reports. It is needless for me to say that he maintained the high reputation which he had as a district judge, and that he measured up to the high qualifications which have always been an attribute of the members of the Supreme Court of the United States. “ Besides being a great lawyer and a great judge, he was a man of ripe and profound scholarship and took a deep interest in the best that there was in literature. He wrote and spoke the best of English and, as said of him by a member of this Court: ‘ He was bom to charm.’ EDWARD TERRY SANFORD. XLIX “As a district judge he was part and parcel of the communities in his district. He frequently appeared on public occasions, and spoke in behalf of all movements looking to the general welfare and betterment of the community. He was a welcome guest in any company. His addresses were always suitable and appropriate to the occasion. He was equally at home in addressing a gathering of very plain people on some local question as he was in addressing the great assembly of lawyers which took place in the Guild Hall, in London, in 1924. . . . “ His life and character are and will always be an inspiration to the youth of our State and Nation. . . . “ The Nation had reposed a great trust in him and in fidelity to this trust death came to him. In his last moments his thoughts were that duty required him to meet with his brethren of the bench at noon. In his fidelity to duty I am reminded of the Roman soldier who met his death at Pompeii when that city was submerged by the eruption of Vesuvius. He did not fly from his post of duty, but remained where duty bade him stay, and nineteen centuries later his remains were found standing erect, sword in hand, and his face towards Rome. And so, Mr. Chairman, our departed brother crossed the bar and met his Pilot face to face, unafraid, conscious that he had lived up to the highest ideals and standards of his race.” The resolutions were adopted and the meeting adjourned. A pamphlet, published by the Committee, presents in full these resolutions and addresses concerning Mr. Justice Sanford and the eulogies in Court that follow. Memorial Resolutions adopted by the Bar Association of Knox County, Tennessee, and a telegram from the Supreme Court of Texas, by its Chief Justice, are also in that volume. L EDWARD TERRY SANFORD. Supreme Court of the United States Monday, June 1, 1931. Present: The Chief Justice, Mr. Justice Holmes, Mr. Justice Van Devanter, Mr. Justice McReynolds, Mr. Justice Brandeis, Mr. Justice Sutherland, Mr. Justice Butler, Mr. Justice Stone, and Mr. Justice Roberts. Mr. Attorney General Mitchell addressed the Court as follows: “May it please the Court: On the very day of the death of the late Chief Justice, Edward Terry Sanford, Associate Justice, was suddenly stricken and died. Representatives of the Bar, gathered to pay reverent tribute to his memory, adopted resolutions, which it is now my privilege to present to the Court with the request that they be entered in its records as a token of the high esteem in which Justice Sanford was held by the legal profession.” [The resolutions are printed on pp. xxxvii et seq., ante.] “ Justice Sanford’s career in the public service had its beginning in the suggestion by Mr. Justice McReynolds, then an Assistant Attorney General of the United States, that he be retained by the Government in the investigation of the Fertilizer Trust in 1905. The marked ability disclosed in that case secured him immediate recognition and resulted in his appointment in 1907 to the position of Assistant Attorney General. While occupying that post he appeared before this Court on several occasions and made a favorable impression by the skill and force with which he presented the cases entrusted to him. He attracted the favorable attention of President Roosevelt, and in 1908 was appointed to be United States District Judge for the Eastern and Middle Districts of Tennessee. EDWARD TERRY SANFORD. LÎ He had hoped to have the post of Solicitor General, and accepted the judicial office with some reluctance, not realizing that he had been set upon the path that would lead him to the highest honor open to a member of his profession. “ During the last forty-five years those appointed United States District Judges have averaged forty-nine years of age when appointed. Judge Sanford was forty-three when he became a District Judge. His case is an example of the gain to the judicial service in appointing to the lower federal courts comparatively young men, of character and education, through the opportunities for distinguished judicial careers thus opened up to them. “ His service as a trial judge was one of exacting labor, rendered more than usually arduous by a temperament which demanded that every case be given the most careful and painstaking consideration regardless of its material importance. While at the bar he had shown a marked preference for practice before appellate courts, the quick and undeliberated decisions necessary in trial work being repugnant to his scholarly and rather cautious nature. For the same reason his duties as a District Judge were not entirely congenial to him, since he was constantly faced with the necessity of passing immediately upon questions to which he would have preferred to give more mature consideration. “ Nevertheless, his preferences in no way influenced his achievements, and his record was an enviable one. The high regard in which he was held by those with whom he was associated was made evident by the spontaneous outburst of approval with which they responded to the proposal that he be elevated to the Supreme Court. When the retirement of Mr. Justice Pitney, on December 31, 1922, created a vacancy, the Senate of the State of Tennessee adopted a resolution urging that Judge Sanford be considered for the position, and the overwhelming indorsement then given him by the people from his sec lii EDWARD TERRY SANFORD. tion of the country, coupled with the desire which had always been his to become a member of an appellate tribunal, must have made his selection for the supreme bench doubly gratifying to him. “ During the seven years of his service as a Justice of the Supreme Court he delivered the opinion of the Court in 130 cases. These opinions, which are to be found in volumes 261 to 281, inclusive, of the Reports, disclose his scholarly training. In addition to his technical equipment he had that culture and breadth of vision so. valuable in high judicial office. His professional learning was supplemented by an intimate familiarity with literature, which gave to his judicial opinions an unusual clarity and attractive style. Endowed by nature with the rare gift of felicitous expression, which he used to such good advantage at the bar, he could not be satisfied with a judicial utterance until it had been subjected to careful scrutiny to the end that the exposition of his views and the process of reasoning upon which they were founded might be full and lucid. His judicial labors were characterized by patient and conscientious deliberation upon every aspect of the case in hand. Fidelity to duty was ever his chief concern. “His judicial opinions cover most of the branches of the law with which this Court is called upon to deal. Those in the Pocket Veto Case in the 279th, and in the Gitlow and Fiske cases in the 268th and 274th, which dealt with the constitutional validity of state statutes defining criminal anarchy, are examples of the excellence of his judicial work. “ All of his writings indicate a marked adherence to the principles on which our Constitution is based, coupled with an appreciation of the need of adjusting the application of those principles to fit the requirements of changing conditions. Conservative in judgment and strict in his adherence to tested doctrines, he was one of that great body of jurists who have maintained the stability of the common-law system of jurisprudence. EDWARD TERRY SANFORD. LIII “ No tribute to Justice Sanford, however brief, would be complete which touched only upon his professional achievements. His early studies, supplemented by foreign travel, bred in him an enduring appreciation of music, literature, and the fine arts. He was in every sense a man of the highest culture. His mastery of the English language and his training in the field of advocacy combined to make him a speaker of unusual ability and charm. But above all, his dominant traits of character were kindliness and affection for his fellow men. His interests in the fields of education and charity were many. The joys of friendship were his constant and supreme delight. “ The widespread grief occasioned by his death was intensified by the fact that, only sixty-four years of age, his faculties matured by long experience and untiring industry, he appeared to have many years of useful service before him. The Nation has lost an able, high-minded judge, and many of us a gracious friend. Of him it may fittingly be said, as Campbell said of Lord Holt,*‘ Perhaps the excellence which he attained may be traced to the passion for justice by which he was constantly actuated.’ ” The Chief Justice responded: “ Mr. Attorney General: The Court receives with deep gratification this tribute from the bar to the service of an able and faithful member of this Court, who was taken from us, with tragic suddenness, in the midst of his career. “ The strength of the Court is the resultant of the interaction and cooperation of individual forces, and the successful performance of its function depends upon the discharge of individual responsibility by Justices of equal authority in the decision of all matters that come before the Court. It has recruited its strength both from the bar and from the bench, and the contributions made to the jurisprudence of the Court by those whose judgment has been ripened by the responsibilities of administration in state and federal courts has been a conspicuous feature of its history. liv EDWARD TERRY SANFORD. “ Mr. Justice Sanford had the advantage not only of careful preparation for the bar under the most exacting and stimulating teachers of the law, and of valuable experience in practice, but of many years of service as a District Judge of the United States. It was the distinguished success with which he met that long-continued test that led to his appointment to this bench. He came here as a graduate of the hard school of judicial experience, and he brought with him an intimate and precise knowledge of the problems of the federal courts. Never sacrificing the dignity, impartiality and authority of his office as a District Judge to any desire for public favor, his ability and fidelity commanded their appropriate and gratifying reward in the esteem and confidence of the comunity that he served, so that the bar and the legislature of the State of Tennessee gave to the proposal of his appointment to this Court a unanimous endorsement. It was pre-eminently his judicial quality which won this general esteem. Without eccentricity, affectation or irritation, but with simplicity, candor, patience and thoroughness, he had applied himself to every judicial task, whether agreeable or irksome, and the applause which greeted the conduct of his office was a tribute to the standards of the community as well as to his own. “ In the District Court, Judge Sanford carried a heavy burden of criminal cases and, as exemplifying his dominant traits, I may quote what has been said by an eminent member of the bar who had long observed his manner of discharging this duty: ‘In the administration of the criminal laws he was judge and not prosecutor. The government was only a litigant in his court suing for justice. It stood on a parity with the humblest citizen it accused. The constitution and laws of his country were to be obeyed, and not evaded, by judge, government and accused alike.’ Especially prominent in every activity was his unfailing courtesy and grace. Never lacking this quality himself, he looked for it in others, and in the District Court under his guidance there was afforded a notable EDWARD TERRY SANFORD. lv illustration of the commendable restraint and propriety in speech which heighten rather than impair the effectiveness of forensic efforts. “ In addition to sound technical training as a lawyer and broad experience as a judge, Mr. Justice Sanford had resources of culture, developed by travel and liberal studies both here and abroad. He was interested in literature, music and art, and those who enjoyed companionship with him were not disappointed because of limitations in his horizon. While the learning of the law was his supreme interest, it neither monopolized nor narrowed him. He was happy in his public addresses and brought to many important meetings the charm of eloquence. The members of the bar cannot fail to remember with especial pleasure his address in London at the Lord Mayor’s dinner at Guild Hall on the occasion of the visit, in 1924, of the representatives of the American Bar Association, and his graceful response to the welcome of the French bench and bar in the Palais de Justice in Paris. The lawyers and judges of France had the unusual and welcome opportunity of listening to an eminent member of the American judiciary paying a beautiful tribute in their own tongue to their achievements and aspirations. “ You have alluded, Mr. Attorney General, to the important opinions delivered for this Court by Mr. Justice Sanford, and, as illustrating the quality of his work, you have referred in particular to the Pocket Veto Case, 279 U. S. 655, relating to the authority of the President, and also to the cases in which Mr. Justice Sanford dealt in clear and definite utterance with the power of the State as affecting freedom of speech, upholding the necessary authority to punish abuses of that freedom (Gitlow v. New York, 268 U. S. 652; Whitney v. California, 274 U. S. 357) while also sustaining the constitutional limitations which safeguard the liberty of the citizen (Fiske v. Kansas, 274 U. S. 380). In his work in the District Court, Mr. Justice Sanford had given special attention to the difficult problems arising in the administration of the bankruptcy LVI EDWARD TERRY SANFORD. law, and he performed a noteworthy service in this Court in that branch of jurisprudence, writing a number of opinions in leading cases. Meek v. Centre County Banking Company, 268 U. S. 426, and Taylor v. Foss, 271 U. S. 176, are illustrations. Another outstanding judgment delivered by Mr. Justice Sanford was that in Liberty Warehouse Company v. Grannis, 273 U. S. 70, maintaining the essential limitation of the jurisdiction of the federal courts to f cases ’ and1 controversies.’ He reaffirmed with careful emphasis the fundamental principle, as he expressed it, 1 that the judicial power vested by Article III of the Constitution in this Court and the inferior courts of the United States established by Congress thereunder, extends only to “ cases ” and “ controversies ” in which the claims of litigants are brought before them for determination by such regular proceedings as are established for the protection and enforcement of rights, or the prevention, redress, or punishment of wrongs; and that their jurisdiction is limited to cases and controversies presented in such form, with adverse litigants, that the judicial power is capable of acting upon them, and pronouncing and carrying into effect a judgment between the parties, and does not extend to the determination of abstract questions or issues framed for the purpose of invoking the advice of the court without real parties or a real case.’ “ In estimating the value of judicial work, it is well not to lay too much stress upon opinions which seem to have a particular importance because of the public attention they receive or the spectacular circumstances of the controversies to which they are addressed. Juristic achievements are not measured by the distinction of litigants, or the amount in controversy, or the dramatic setting which gives temporary notoriety. The most worthy performance of judicial duty in the careful analysis of facts, in exact reasoning, and in the observance of a correct perspective in bringing the results of earlier controversies to their appropriate present service, may be EDWARD TERRY SANFORD. LVII found in cases which attract at the time little attention on the part of the general public, but achieve importance in the annals of jurisprudence. The final reputation of a judge owes far less to contemporary estimate than to the inevitable later appraisal when his efforts find their appropriate historical setting. “Mr. Justice Sanford was keenly aware of this, and, with philosophic bent and conscientious application, he was faithful to the judicial tradition, devoting the same care to every case which came before the Court, without regard to its rating in public opinion. He was ever intent upon the intrinsic quality of his work rather than upon adventitious circumstance. “Although cut off in mid-career, as judicial careers are reckoned, we gratefully recognize the long service that he rendered in a life which enjoyed a succession of deserved honors and was crowned by the fulfillment of a worthy ambition. He met every responsibility with integrity of motive and singleness of purpose, and he discharged every trust with complete fidelity. His life is epitomized in his own words: ‘Youth and age have come; youth rejoicing in the splendor of life’s morning; and age, steadfast in the majesty of its noonday, serene in the tender glow of its evening sky.’ In the midst of that serenity the final summons came, and he was taken from us. Mourning our loss, but enriched by the memory of his friendship and cooperation, we renew our labors.” L TABLE OF CASES REPORTED Page Acheson, Florida East Coast Ry. Co. v...........551 Adams Grease Gun Corp. v. Bassick Mfg. Co.......531 Adcock v. Commissioner......................... 537 Aetna Casualty & S. Co. v. Phoenix Nat. Bank....209 Aetna Life Ins. Co. v. Hagemyer.................542 Akeroyd (James) & Son v. United States..........550 Aleograph Co. v. Electrical Research Products...553 American Bond & Mortgage Co. v. United States... 538 American Car & Foundry Co., Kingston v..........560 American Surety Co. v. Greek Catholic Union.....526 American Trading Co. v. H. E. Seacock Co........ 247 Anderson v. Guinzburg.......................... 553 Ard v. United States........................... 550 Arkansas Natural Gas Corp., Page v............. 532 Arkansas Power & L. Co. v. West Memphis Co......536 Armburg, Boston & Maine R. Co. v............... 234 Army & Navy Club v. United States.............. 548 Asaka Shosen Kaisha v. Habicht Braun & Co.......556 Atlantic Coast Line R. Co. v. Temple........... 143 Atlantic Refining Co. v. United States......... 542 Bachmann, St. Paul Fire & M. Ins. Co. v........... 112 Baltimore Insular Line, Cortes v................. 535 Baltimore & Ohio R. Co. v. Berry............... 532 Bankers Utilities Co. v. National Bank Supply Co... 541 Bassick Mfg. Co., Adams Grease Gun Corp, v...... 531 Becker, Carroll v.......................... 380, 534 Benson, Crowell v............................... 22 Bernstein (M.) & Sons v. United States......... 554 Berry, Baltimore & Ohio R. Co. v................. 532 LIZ lx TABLE OF CASES REPORTED. Page Bickell, Smith-Hamburg Scott Welding Co. v.....541 Blakley v. Brinson............................. 531 Bolton, Grigg v................................ 538 Bon wit Teller & Co., United States v.......... 538 Boston & Maine R. Co. v. Armburg............... 234 Bowers v. Lawyers Mortgage Co.................. 182 Bowman (Geo. H.) Co., Mantle Lamp Co. v........ 545 Box Elder County, Jones v....................... 555 Brandywine Hundred Realty Co. v. Cotillo.......555 Brast, Welch Insurance Agency v................ 555 Brennen v. Smith............................... 544 Brinson, Blakey v.............................. 531 British Empire Grain Co. v. Paterson Steamships... 413 Bromberg, Rodgers v............................ 542 Brunk, DePauw University v..................... 527 Bryan, Speakman v.............................. 539 Buchhalter, Rude v............................. 535 Buffalo v. United States....................... 550 Bunker v. United States........................ 557 Bunn, Hartford Accident & Ind. Co. v............. 169 Burnet v. Chicago Portrait Co.................... 1 Burnet v. Coronado Oil & Gas Co................ 393 Burnet v. Hall................................. 552 Burnet v. Leininger............................ 136 Burnet, Shearer v.............................. 228 Burnet, Stewart v.............................. 228 California, Farrington v....................... 530 Callahan v. United States...................... 515 Campbell River Mills Co., Chicago, M., St. P. & P. R. Co. v........................................ 536 Canada Malting Co. v. Paterson Steamships...... 413 Carroll v. Becker......................... 380, 534 Carter, Southern Cities Distributing Co. v..... 525 Chas. H. Phillips Chemical Co. v. McKesson & Robbins...................................... 552 Chetkovich v. United States.................... 541 Chicago Great Western R. Co. v. Des Moines Ry. Co. 537 TABLE OF CASES REPORTED. lxi Page Chicago, M., St. P. & P. R. Co. v. Campbell Co.. 536 Chicago, M., St. P. & P. R. Co. v. Nellis...... 543 Chicago Portrait Co., Burnet v.................... 1 Chicago Short Line Ry. Co., Gidley v............. 554 Claiborne-Annapolis Ferry Co. v. United States..382 Clifton Highland Co. v. Lakewood............... 549 Cochran, Slattery v............................. 525 Colket, Kerens v................................ 543 Colletti v. United States...................... 559 Colorado, Ex parte.................... 523, 528, 530 Comfort, John Wanamaker New York v............ 560 Commercial Credit Co., United States v........... 534 Commissioner, Adcock v......................... 537 Commissioner, Lincoln Bank & Trust Co. v........ 548 Commissioner, New York Trust Co. v............. 556 Commissioner, Northern Trust Co. v.............. 558 Commissioner, Phelps v.......................... 558 Coombes v. Getz................................ 434 Corker v. Howard............................... 540 Coronado Oil & Gas Co., Burnet v............... 393 Corsi, U. S. ex rel. Stapf v................... 535 Cortes v. Baltimore Insular Line............... 535 Cotillo, Brandywine Hundred Realty Co. v........ 555 Couthoui, F., v. United States................. 548 Cramer, Lamb v................................ 217 Crandall v. Habbe............................... 540 Crowell v. Benson............................... 22 Crowell, L’Hote v............................... 533 Cutcliff v. United States....................... 556 Czarlinsky v. United States..................... 549 Dana, Thomson v................................ 529 Daniel v. Guaranty Trust Co.................... 154 Davis v. Reed.................................. 542 DeBonis v. United States....................... 558 Delaware Trust Co., Handy v.................... 352 DePauw University v. Brunk..................... 527 Deppe v. General Motors Corp................... 545 LXII TABLE OF CASES REPORTED. Page Des Moines Terminal Co. v. Des Moines Ry. Co.... 537 Des Moines Union Ry. Co., Chicago G. W. R. Co. v.. 537 Des Moines Union Ry. Co., Des Moines T. Co. v.... 537 D. Ginsberg & Sons v. Popkin................... 204 Didsbury, Erie R. Co. v......................... 540 Donnan, Heiner v................................ 312 Dover, Ex parte.................................. 525 Doyal, Glenn v.................................. 526 Dulion v. S. A. Lynch Enterprise Finance Corp.... 540 Eastern Air Transport v. Tax Commission.......... 147 Electrical Research Products, Aleograph Co. v....553 E. L. Husting Co., Wisconsin Coca Cola Co. v.... 538 Endicott v. United States....................... 555 Erie R. Co. v. Didsbury........................ 540 Erie R. Co. v. Steele........................... 546 Ex parte Colorado...................... 523, 528, 530 Ex parte Dover.................................. 525 Ex parte Keogh.................................. 526 Ex parte Pocono Pines Hotels Co................. 526 Ex parte Ryan................................... 528 Faircloth v. United States..................... 550 Farrington v. California........................ 530 F. Couthoui, Inc. v. United States............. 548 Ferroni v. United States...................... 543 Florida East Coast Ry. Co. v. Acheson........... 551 Florida ex ret. Woods-Young Co. v. Tedder........ 557 Flynn, Koenig v............................. 375, 532 Ford v. New York, N. H. & H. R. Co.............. 549 Franco v. New York Life Ins. Co................. 552 Frigidaire Sales Corp. v. Marks................. 544 Galveston, H. & S. A. Ry. Co., Galveston Wharf Co. v......................................... 127 Galveston Wharf Co. v. Galveston, H. & S. A. Ry. Co. 127 Galvin, Minneapolis, St. P. & S. S. M. Ry. Co. v.... 551 General Import & Export Co. v. United States.....534 General Motors Corp., Deppe v................... 545 Geo. H. Bowman Co., Mantle Lamp Co. v........... 545 TABLE OF CASES REPORTED. Lxni Page Getz, Coombes v................................ 434 Gibson v. United States........................ 557 Gidley v. Chicago Short Line Ry. Co............ 554 Ginsberg (D.) & Sons v. Popkin................. 204 Glenn v. Doyal................................. 526 Goodyear Tire & R. Co. v. Overman Tire Co...... 545 Great Northern Utilities Co., Commission v..... 524 Greek Catholic Union, American Surety Co. v....... 526 Grigg v. Bolton................................ 538 Guaranty Trust Co., Daniel v..................... 154 Guinzburg, Anderson v.......................... 553 Guzik v. United States......................... 545 Habbe, Crandall v.............................. 540 Habicht Braun & Co., Osaka Shosen Kaisha v..... 556 Hagemyer, Aetna Life Ins. Co. v................ 542 Hagner v. United States........................ 427 Hall, Burnet v.................................. 552 Hall, White v.................................. 553 Handy v. Delaware Trust Co..................... 352 Harding, Illinois ex rel., Kogen v............. 558 Hartford Accident & Indemnity Co. v. Bunn...... 169 Heacock (H. E.) Co., American Trading Co. v.... 247 Heacock (H. E.) Co., Wm. A. Rogers v........... 247 H. E. Heacock Co., American Trading Co. v........ 247 H. E. Heacock Co., Wm. A. Rogers, Ltd. v.......... 247 Heiner v. Donnan............................... 312 Hicks, Spencer Kellogg & Sons v................ 502 Holm, Smiley v................................. 355 Home Title Ins. Co., United States v........... j... 191 Hopkins, Planters Cotton Oil Co. v............. 533 Howard, Corker v............................... 540 Hurley v. Kincaid................................ 95 Hurt v. New York Life Ins. Co.................. 541 Husting (E. L.) Co., Wisconsin Coca Cola Co. v. 538 Illick v. Trust Co. of Florida................. 559 Illinois ex rel. Harding, Kogen v.................. 558 I. N. Platt & Co., Lowenstein v............... 539 137818°—32--v LXIV TABLE OF CASES REPORTED. Page Interstate Commerce Comm., Piedmont & N. Ry. Co. v........................................ 531 Irving Trust Co., Schoenthal v.................. 536 Jabczynski v. United States..................... 546 Jackson, Michigan ex rel. Palm v................ 547 James Akeroyd & Son v. United States.............550 Johnson, Pacific Co. v.......................... 480 John Wanamaker New York v. Comfort...............560 Jones v. Box Elder County........................ 555 Kansas City Public Service Co. v. Ranson........ 528 Keogh, Ex parte.................................. 526 Kerens v. Colket................................. 543 Kincaid, Hurley v................................ 95 King, Northern Life Inc. Co. v................... 544 Kingston v. American Car & F. Co................ 560 Klein v. U. S. Fidelity & Guaranty Co........... 544 Koenig v. Flynn............................. 375,532 Kogen v. Illinois ex rel. Harding............... 558 Kombst, United States v......................... 532 Lakewood, Clifton Highland Co. v................ 549 Lamb v. Cramer.................................. 217 Lamb v. New Jersey ex rel. Tierney.............. 530 Lamb v. Schmitt................................. 222 Lang v. United States........................... 533 Lawrence-Williams Co., Societe Enfants Gombault v. 549 Lawyers Mortgage Co., Bowers v.................. 182 Leach v. Nichols................................ 165 Lee, State Bank & Trust Co. v................... 547 Lefkowitz, United States v....................... 452 Lehigh Valley R. Co. v. Russell................. 544 Leininger, Burnet v............................. 136 Leong Dung Dye, U. S. Fidelity & G. Co. v.......... 537 L’Hote v. Crowell............................... 533 Liebmann, New State Ice Co. v................... 262 Limehouse, United States v...................... 424 Lincoln Bank & Trust Co. v. Commissioner........ 548 Logan v. United States.......................... 555 TABLE OF CASES REPORTED. lxv Page Louisiana, Taylor v........................... 547 Louisville & N. R. Co., Missouri ex rel., v. Ossing... 559 Louisville & N. R. Co., Reeves v.................. 524 Lowenstein v. I. N. Platt & Co................ 539 Lowenstein v. Reikes.......................... 539 Lucas, Whitmer v.............................. 529 Lujan, Streit v................................. 527 Lynch (S. A.) Enterprise Finance Corp., Dulion v.. 540 MacDonald v. Plymouth County Trust Co......... 533 Mahoning Coal R. Co. v. Routzahn.............. 559 Mahoning Coal R. Co. v. United States......... 559 Mantle Lamp Co. v. Geo. H. Bowman Co.......... 545 Marks, Frigidaire Sales Corp, v............... 544 M. Bernstein & Sons v. United States.......... 554 McCarthy v. U. S. S. B. Merchant Fleet Corp... 547 McFall, Thomas v...............................537 McFee v. United States........................ 546 McGraw (P.) Wool Co. v. United States......... 553 McKesson & Robbins, Phillips Chemical Co. v...552 Mediavilla, Rosa, Monserrate Rafaela v............ 557 Merchant Fleet Corp., McCarthy v.............. 547 Michigan ex rel. Palm v. Jackson.............. 547 Mills Novelty Co. v. United States............ 547 Minneapolis, St. P. & S. S. M. Ry. Co. v. Galvin... 551 Missouri ex rel. L. & N. R. Co. v. Ossing..... 559 Morgan Lithograph Co. v. Wezel-Naumann Aktien-gesellschaft.................................. 545 Mosher v. Phoenix............................. 535 Mulligan, People ex rel. Neve v................... 558 Nalbantian v. United States................... 536 Nash v. United States......................... 556 National Bank Supply Co., Bankers Utilities Co. v.. 541 Nellis, Chicago, M., St. P. & P. R. Co. v............ 543 Neve, People ex rel., v. Mulligan............. 558 New Jersey ex rel. Tierney, Lamb v............ 530 New State Ice Co. v. Liebmann................. 262 New York Life Ins. Co., Franco v.............. 552 LXVI TABLE OF CASES REPORTED. Page New York Life Ins. Co., Hurt v................. 541 New York Life Ins. Co., Tolbert v.............. 551 New York, N. H. & H. R. Co., Ford v............ 549 New York Title & M. Co. v. Tarver.............. 524 New York Trust Co. v. Commissioner............. 556 Nichols, Leach v............................... 165 Northern Life Ins. Co. v. King................. 544 Northern Trust Co. v. Commissioner............. 558 Oliver v. United States........................ 543 Ossing, Missouri ex rei. L. & N. R. Co. v...... 559 Overman Cushion Tire Co., Goodyear Co. v........ 545 Pacific Co. v. Johnson......................... 480 Packer Corp. v. Utah........................... 105 Page v. Arkansas Natural Gas Corp.............. 532 Palm, Michigan ex rei., v. Jackson............. 547 Paterson Steamships, British Empire Co. v.......413 Paterson Steamships, Canada Malting Co. v......... 413 Paterson Steamships, Starnes v................. 413 Pennsylvania R. Co., Steinman v.................. 552 People ex rei. Neve v. Mulligan................ 558 Phelps v. Commissioner......................... 558 Philipsbom v. United States.................... 548 Phoenix, Mosher v.............................. 535 Phoenix Nat. Bank & T. Co., Aetna Co. v.........209 Piedmont & Northern Ry. Co. v. Interstate Com- merce Comm................................... 531 Planters Cotton Oil Co. v. Hopkins............. 533 Platt (I. N.) & Co., Lowenstein v......;....... 539 Plymouth County Trust Co., MacDonald v.......... 533 P. McGraw Wool Co. v. United States............ 553 Pocono Pines Assembly Hotels Co., Ex parte...... 526 Popkin, D. Ginsberg & Sons v................... 204 Prudential Insurance Co., Wolfe v..'........... 540 Public Service Comm. v. Great Northern Util. Co... 524 Public Service Comm., Western Distributing Co. v .. 119 Quinn, Reichelderfer v......................... 535 Ranson, Kansas City Public Service Co. v.......... 528 TABLE OF CASES REPORTED. lxvii Page Reed, Davis v.................................. 542 Reeves v. Louisville & N. R. Co................ 524 Reichelderfer v. Quinn....................... 535 Reikes, Lowenstein v........................... 539 Richardson v. United States.................... 543 Rodgers v. Bromberg........................... 542 Rogers (Wm. A.), Ltd. v. H. E. Heacock Co....... 247 Rosa, Monserrate Rafaela v. Mediavilla......... 557 Routzahn, Mahoning Coal R. Co. v............... 559 Rude v. Buchhalter............................. 535 Russell, Lehigh Valley R. Co. v................ 544 Russo-Asiatic Bank, Tillman v.................. 539 Ruth Mildred, The, United States v............. 534 Ryan, Ex parte................................. 528 St. Louis Southwestern Ry. Co. v. Simpson....... 531 St. Paul Fire & M. Ins. Co. v. Bachmann........ 112 S. A. Lynch Enterprise Finance Corp., Dulion v.. 540 Scala v. United States......................... 554 Scharton, United States v...................... 518 Schmitt, Lamb v................................ 222 Schoenthal v. Irving Trust Co.................. 536 Sconyers v. United States...................... 554 Seaboard Air Line Ry. Co. v. Spencer........... 539 Shearer v. Burnet.............................. 228 Shore v. United States......................... 552 Shriver v. Woodbine Savings Bank............... 467 Simpson, St. Louis Southwestern Ry. Co. v.......531 Slattery v. Cochran............................ 525 Smiley v. Holm................................. 355 Smith, Brennen ............................... 544 Smith, United States v......................... 523 Smith-Hamburg Scott Welding Co. v. Bickell...... 541 Societe Enfants Gombault v. Lawrence-Williams Co. 549 South Carolina Tax Comm., Eastern Air Trans, v... 147 Southern Cities Distributing Co. v. Carter......525 Southern Pacific Co. v. United States.......... 240 Speakman v. Bryan.............................. 539 LXVIII TABLE OF CASES REPORTED. Page Spencer, Seaboard Air Line Ry. Co. v.............. 539 Spencer Kellogg & Sons v. Hicks................. 502 Stapf, U. S. ex ret., v. Corsi.................. 535 Starnes v. Paterson Steamships.................. 413 State Bank & Trust Co. v. Lee................... 547 Steele, Erie R. Co. v........................... 546 Steinman v. Pennsylvania R. Co.................. 552 Stevens v. The White City....................... 195 Stewart v. Burnet............................... 228 Streit v. Lujan................................. 527 Tarver, New York Title & M. Co. v............... 524 Taylor v. Louisiana............................. 547 Taylor v. United States......................... 534 Tedder, Florida ex rel. Woods-Young Co. v......... 557 Temple, Atlantic Coast Line R. Co. v.............. 143 Thomas v. McFall................................ 537 Thomson v. Dana................................. 529 Tierney, New Jersey ex rel., Lamb v............... 530 Tillman v. Russo-Asiatic Bank.................. 539 Tolbert v. New York Life Ins. Co................ 551 Trombetta v. United States...................... 550 Trust Co. of Florida, Illick v...................... 559 Tyson v. United States.......................... 551 United States, American Bond & M. Co. v......... 538 United States, Ard v............................. 550 United States, Army & Navy Club v.. .•.......... 548 United States, Atlantic Refining Co. v............. 542 United States v. Bonwit Teller & Co............. 538 United States, Buffalo v........................ 550 United States, Bunker v.......................... 557 United States, Callahan v........................ 515 United States, Claiborne-Annapolis Ferry Co. v..382 United States, Colletti v....................... 559 United States v. Commercial Credit Co........... 534 United States, Cutcliff v....................... 556 United States, Czarlinsky v....................... 549 United States, DeBonis v......................... 558 TABLE OF CASES REPORTED. LXIX Page United States, Endicott v...................... 555 United States, Faircloth v..................... 550 United States, F. Couthoui v................... 548 United States, Ferroni v....................... 543 United States, General Import & Export Co. v.... 534 United States, Gibson v...................... 1.. 557 United States, Guzik v......................... 545 United States, Hagner v......................... 427 United States v. Home Title Ins. Co............ 191 United States, Jabczynski v....'............... 546 United States, James Akeroyd & Son v........... 550 United States v. Kombst........................ 532 United States, Lang v........................... 533 United States v. Lefkowitz..................... 452 United States v. Limehouse..................... 424 United States, Logan v......................... 555 United States, Mahoning Coal R. Co. v.......... 559 United States, M. Bernstein & Sons v........... 554 United States, McFee v......................... 546 United States, Mills Novelty Co. v................ 547 United States, Nalbantian v.................... 536 United States, Nash v........................... 556 United States, Oliver v.......................... 543 United States, Philipsbom v..................... 548 United States, P. McGraw Wool Co. v............ 553 United States, Richardson v..................... 543 United States, Scala v........................... 554 United States v. Scharton...................... 518 United States, Sconyers v...................... 554 United States, Shore v.......................... 552 United States v. Smith......................... 523 United States, Southern Pacific Co. v.............. 240 United States, Taylor v.......................... 534 United States v. The Ruth Mildred.............. 534 United States, Trombetta v. 550 United States, Tyson v.......................... 551 United States, Wright v........................ 539 LXX TABLE OF CASES REPORTED Page U. S. Cities Corp., Vose v..................... 523 U. S. ex rel. Stapf v. Corsi................... 535 U. S. Fidelity & Guaranty Co., Klein v............ 544 U. S. Fidelity & G. Co. v. Leong Dung Dye...... 537 U. S. S. B. Merchant Fleet Corp., McCarthy v...... 547 Utah, Packer Corp, v........................... 105 Vose v. U. S. Cities Corp...................... 523 Wabash Ry. Co. v. Whitcomb..................... 546 Wanamaker (John) New York v. Comfort........... 560 Welch Insurance Agency v. Brast................ 555 Western Distributing Co. v. Public Service Comm... 119 West Memphis Power & W. Co., Arkansas P. & L. Co. ......................................... 536 Wezel-Naumann Aktiengesellschaft Morgan Litho. • Co. ......................................... 545 Whitcomb, Wabash Ry. Co. v................. 546 White v. Hall.................................. 553 White City, The, Stevens v...................... 195 Whitmer v. Lucas............................... 529 Wm. A. Rogers, Ltd. v. H. E. Heacock Co........ 247 Wisconsin Coca Cola B. Co. v. E. L. Husting Co.... 538 Wolfe v. Prudential Insurance Co............... 540 Woodbine Savings Bank, Shriver v............... 467 Woods-Young Co., Florida ex rel., v. Tedder.... 557 Wright v. United States........................ 539 TABLE OF CASES Cited, in Opinions Page Abie State Bank v. Bryan, 282 U. S. 765 412 Ada, The, Fed. Cas. No. 38 421 Adams Express Co. v. Ohio, 165 U. S. 194 152 Adirondack Ry. Co. v. New York, 176 U. S. 335 105 Agnello v. United States, 269 U. S. 20 464 Alabama v. United States, 279 U. S. 229 524 Albani, The, 169 Fed. 220 421 Alberta Contracting Corp. v. Santomassimo, 107 N. J. L. 7 513 Aldrich v. Pennsylvania R. Co., 255 Fed. 330 203 Alexander v. Greene, 3 Hill 1 200 Allen v. Newberry, 21 How. 544 407 Allgeyer v. Louisiana, 165 U. S. 578 408 Alnwick, The, 132 Fed. 117 421 Alpha Cement Co. v. Massa- chusetts, 268 U. S. 203 409 Alzua v. Johnson, 231 U. S. 106 261 Amalia, The, 3 Fed. 652 421 American Insurance Co. v. Canter, 1 Pet. 511 50 American Ry. Express Co. v. Trust Co., 47 F. (2d) 16 201 American School of Magnetic Healing v. McAnnulty, 187 U. S. 94 91 American Steamboat Co. v. Chase, 16 Wall. 522 513 American Steel Foundries v. Industrial Board, 284 Ill. 99 84 Page American Steel Foundries v. Robertson, 269 U. S. 372 • 256,258 American Surety Co. v. Ballman, 104 Fed. 634 215 American Surety Co. v. Greek Catholic Union, 284 U. S. 563 216 American Tobacco Co. v. Werckmeister, 207 U. S. 284 6 American Waltham Watch Co. v. U. S. Watch Co., 173 Mass. 85 260 Anderson v. Alaska S. S. Co., 22 F. (2d) 532 79 Anderson v. Dunn, 6 Wheat. 204 408 Andrew v. People’s Bank, 211 Iowa 649 475 Appleby v. New York, 271 U. S. 364 450,475 Apurimac, The, 7 F. (2d) 741 422 Arizona v. California, 283 U. S. 423 55 Arizona Grocery Co. v. Atchison, T. & S. F. Ry. Co., 284 U. S. 370 58 Arkansas Wholesale Grocers Assn. v. Federal Trade Comm., 18 F. (2d) 866 70 Armstrong v. Belding Bros. & Co., 297 Fed. 728 79 A. R. Robinson, The, 57 Fed. 667 203 Arturo, The, 6 Fed. 308 201 Ashwaubemie, The, 3 F. (2d) 782 203 Atchison, T. & S. F. Ry. Co. v. Saxon, 284 U. S. 458 147 LXXI lxxii TABLE OF CASES CITED. Page Atlantic City, The, 241 Fed. 62 203 Atlantic Coast Line R. Co. v. Davis, 279 U. S. 34 147 Atlantic Coast Line R. Co. v. Glenn, 239 U. S. 388 82 Atlantic Coast Line R. Co. v. Riverside Mills, 219 U. S. 186. 82 Atlantic Transport Co. v. Imbrovek, 234 U. S. 52 39,55,513 Attorney General v. Stone, 209 Mass. 186 169 Audubon Bldg. Co. v. An- drews & Co., 187 Fed. 254 119 August Belmont, The, 153 Fed. 639 421 Austin v. Tennessee, 179 U. S. 343 108 Baccus v. Louisiana, 232 U. S. 334 301 Backus v. Ft. Street Union Depot Co., 169 U. S. 557 104 Bailey v. Alabama, 219 U. S. 219 329 Baizley Iron Works v. Span, 281 U. S. 222 40 Bakelite Corp., Ex parte, 279 U. S. 438 51,58,87,89 Baldwin v. Missouri, 281 U. S. 586 407,409 Ball v. United States, 140 U. S. 118 431 Baltic Mining Co. v. Massachusetts, 231 U. S. 68 409 Baltimore & Carolina S. S. Co. v. Norton, 40 F. (2d) 271 68 Baltimore & Ohio S. W. R. Co. v. Settle, 260 U. S. 166 408 Bank v. Carrollton Railroad, 11 Wall. 624 140 Bank v. Deveaux, 5 Cranch 61 407 Bank of Commerce v. Tennessee, 161 U. S. 134 187 Bank of Indianola v. Miller, 276 U. S. 605 526,527 Bank of Oxford v. Love, 250 U. S. 603 476 Baptist Assn. v. Hart’s Executor, 4 Wheat. 1 406 Page Barbour v. Walker, 126 Okla. 227 299 Barclay & Co. v. Edwards, 267 U. S. 442 234,338 Barden v. Northern Pacific R. Co., 154 U. S. 288 409 Barney v. New York, 193 U. S. 430 408 Barnitz v. Beverly, 163 U. S. 118 473 Bartemeyer v. Iowa, 18 Wall. 129 303 Bates & Guild Co. v. Payne, 194 U. S. 106 51,91 Becherdass Ambaidass, The, Fed. Cas. No. 1,203 421 Bee, The, Fed. Cas. No. 1,219 421 Beeler v. Motter, 33 F. (2d) 788 345 Beidler v. Tax Commission, 282 U. S. 1 409 Belfast, The, 7 Wall. 624 55,407 Belgenland, The, 114 U. S. 355 419 Bell’s Gap R. Co. v. Pennsylvania, 134 U. S. 232 349 Belmonte v. Connor, 263 Pa. 470 70 Bernhard v. Creene, Fed. Cas. No. 1,349 422 Bernheimer v. Converse, 206 U. S. 516 449,477 Bertig v. Norman, 101 Ark. 75 201 Bessette v. W. B. Conkey Co., 194 U. S. 324 221 Bethlehem Motors Corp. v. Flynt, 256 U. S. 421 493 Bifrost, The, 8 F. (2d) 361 422 Billings v. United States, 232 U. S. 261 234 Binderup v. Pathe Exchange, 263 U. S. 291 86 Blackstone v. Miller, 188 U. S. 189 409 Blakey v. Johnson, 76 Ky. 197 215 Block v. Hirsh, 256 U. S. 135 71,301,306 Blodgett v. Holden, 275 U. S. 142 62 TABLE OF CASES CITED. LXXIII Page Blondell v. Consolidated Gas Co., 89 Md. 732 201 Bolden v. Jensen, 70 Fed. 505 422 Booth v. Monahan, 56 F. (2d). 168 68 Boston Safe Deposit & T. Co. v. Commissioner, 267 Mass. 240 169 Boston Store v. Graphaphone Co., 246 U. S. 8 406 Boston Towboat Co. v. Darrow-Mann Co., 276 Fed. 778 511 Bouldin v. United States, 261 Fed. 674 432 Boult v. Ship Naval Reserve, 5 Fed. 209 421 Bowers v. Lawyers Mort- gage Co., 285 U. S. 182 192 Bowman v. Continental Oil Co., 256 U. S. 642 407 Boyd v. Smythe, 270 U. S. 635 527 Boyd v. United States, 116 U. S. 616 466,467 Boyer, Ex parte, 109 U. S. 629 55 Bradley v. Huntington, 277 Fed. 948 164 Bragg v. Weaver, 251 U. S. 57 104 Brass v. Stoeser, 153 U. S. 391 298 Brenham v. German Ameri- can Bank, 144 U. S. 173 406 Bridge Proprietors v. Hobo- ken Co., 1 Wall. 116 441 Bridges v. Sheldon, 7 Fed. 17 225 Brinkerhoff-Faris Trust & S. Co. v. HiU, 281 U. S. 673 408 Broad River Power Co. v. South Carolina, 281 U. S. 537 476 Bromley v. McCaughn, 280 U. S. 124 322,336,337,348 Brooklyn, The, Fed. Cas. No. 1,938 201 Brooks v. State, 3 Boyce 1 225 Browley v. Christensen, 137 U. S. 86 303 Page Brown v. Maryland, 12 Wheat. 419 152 Brown v. Routzahn, 58 F. (2d) 329 344 Brown v. United States, 113 U. S. 568 68 Browning v. Way cross, 233 U. S. 16 111 Brown’s Lessee v. Clements, 3 How. 650 406 Bruce v. Tobin, 245 U. S. 18 180 Brunswick Terminal Co. v. Nat. Bank, 192 U. S. 386 475 Brushaber v. Union Pac. R. _ Co., 240 U. S. 1 326,348 Buck v. Beach, 206 U. S. 392 407 Bucker v. Klorkgetter, Fed. Cas. No. 2,083 421 Budd v. New York, 143 U. S. 517 293,298 Bunting v. Oregon, 243 U. S. 426 408 Burfenning v. Chicago, St. P., M. & O. Ry. Co., 163 U. S. 321 51 Burford & Co., Matter of, 36 R. P. C. 139 260 Burnett v. Snyder, 76 N. Y. 344 140 Burns Baking Co. v. Bryan, 264 U. S. 504 278 Burt v. Clay, 207 Ky. 278 84 Burt v. Munising Wooden- ware Co., 222 Mich. 699 84 Butler v. Boston & Savannah S. S. Co., 130 U. S. 527 39 Buttercup, The, 8 F. (2d) 281 203 Buttfield v. Stranahan, 192 U. S. 470 342 Butts v. Merchants & M. Transp. Co., 230 U. S. 126 76 Byars v. United States, 273 U. S. 28 464,467 Calabrese v. Locke, 56 F. (2d) 458 68 Callaghan v. Myers, 128 U. S. 617 51 Camille v. Couch, 40 Fed. 176 421 Caminetti v. United States, 242 U. S. 470 72 Lxxiv TABLE OF CASES CITED. Page Campbell v. Barney, 5 Blatchf. 221 6 Canadian Commander, The, 43 F. (2d) 857 421 Cap. F. Bourland Ice Co. v. Franklin Util. Co., 180 Ark. 770 . 283 Capital Traction Co. v. Hof, 174 U. S. 1 61 Capone v. United States, 51 F. (2d) 609 521 Qarey v. South Dakota, 250 U. S.118 76 Carib Prince, The, 170 U. S. 655 510 Carolina, The, 14 Fed. 424 421 Carpenter v. Shaw, 280 U. S. 363 400 Car roll v. Becker, 45 S. W. (2d) 533 370 Carroll v. United States, 267 U. S.132 466 Carter v. Roberts, 177 U. S. 496 90 Case v. Beauregard, 99 U. S. 119 140 Cason v. Grant County Bank, 97Ky.487 216 Castillo v. McConnico, 168 U. S. 674 527,528 Cayuga, The, 59 Fed. 483 51 Celia Commission Co. v. Boh- linger, 147 Fed. 419 77 Champion Ice Mfg. Co. v. American Bonding Co., 115 Ky. 863 215,216 Channel v. Fassitt, 16 Ohio 166 140 Chapman, In re, 166 U. S. 661 408 Charles River Bridge v. War- ren Bridge, 11 Pet. 420 491 Charter Shipping Co. v. Bowring, Jones & Tidy, 281 U. S. 515 418,420 Chase Nat. Bank v. United States, 278 U. S. 327 323,338 Chelentis v. Luckenbach S. S. Co., 247 U. S. 372 39,80,514 Cherokee Nation v. Southern Kansas Ry. Co., 135 U. S. 641 105 Page Chicago & Alton R. Co. v. Tranbarger, 238 U. S. 67 304 Chicago, B. & Q. R. Co. v. Cram, 228 U. S. 70 41 Chicago, B. & Q. R. Co. v. Drainage Comm’rs, 200 U. S.561 304 Chicago, B. & Q. R. Co. v. McGuire, 219 U. S. 549 285,304 Chicago & E. I. R. Co. v. In- dustrial Commission, 284 U.S. 296 239,406 Chicago Junction Case, 264 U. S.258 48 Chicago, M. & St. P. Ry. Co. v. McCaull-Dinsmore Co., 253 U. S. 97 16 Chicago, M. & St. P. Ry. Co. v. Solan, 169 U. S. 133 238 Chicago, R. I. & P. Ry. Co. v. Cole, 251 U. S. 54 57 Chicago, R. I. & P. Ry. Co. v. Schendel, 270 U. S. 611 86 Chicago, R. I. & P. Ry. Co. v. State, 123 Okla. 190 299 Chicago, R. I. & P. Ry. Co. v. State, 126 Okla. 48 299 Chicago, R. I. & P. Ry. Co. v. United States, 274 U. S. 29 392 Chicago, R. I. & P. Ry. Co. v. Zernecke, 183 U. S. 582 41,82 Chicago, St. P., M. & O. Ry. Co. v. Holmberg, 282 U. S. 162 280 Chickasha Cotton Oil Co. v. Cotton County Gin Co., 40 F. (2d) 846 274 China, The, 7 Wall. 53 42 Chisholm v. Georgia, 2 Dall. 419 409 Choteau v. Burnet, 283 U. S. 691 187,400 Christopher v. Norvell, 201 U. S. 216 449 Churchill’s Case, 265 Mass. 117 70,89 Cinofsky v. Industrial Commission, 290 Ill. 521 70,89 Citizens Bank v. Owensboro, 173 U. S. 636 451 TABLE OF CASES CITED. LXXV Page Citizens’ Telephone Co. v. Fuller, 229 U. S. 322 348,349 City of Carlisle, The, 39 Fed. 807 421 City of Washington, The, 92 U. S. 31 79 Clarence L. Blakeslee, The, 243 Fed. 365 203 Clark v. Monarch Engineer- ing Co., 248 N. Y. 107 84 Clark v. Nash, 198 U. S. 361 275 Clark v. Titusville, 184 U. S. 329 349 Clarke, Ex parte, 100 U. S. 399 367 Clay v. Waters, 178 Fed. 384 220 Cleveland, C., C. & St. L. Ry. Co. v. United States, 275 U. S. 404 391 Cleveland Terminal & V. R. Co. v. Cleveland S. S. Co., 208 U. S. 316 55 Cobb v. Brown, 193 Fed. 958 135 Cochran v. United States, 157 U. S. 286 431 Coe v. Errol, 116 U. S. 517 152 Cohan v. Commissioner, 39 F. (2d) 540 140 Cohen v. United States, 294 Fed. 488 433 Cohens v. Virginia, 6 Wheat. 264 419,423 Collector v. Day, 11 Wall. 113 400 Colorado v. United States, 271 U. S. 153 390 Commerce, The, 1 Black 574 55 Commercial Bank v. Arden & Fraley, 177 Ky. 520 216 Commercial & R. R. Bank v. Slocomb, 14 Pet. 60 407 Commissioner v. Nevin, 47 F. (2d) 478, cert, den., 283 U. S.835 345 Commonwealth v. Wetherbee, 105 Mass. 149 189 Conley v. Barton, 260 U. S. 677 473,479 Connemara, The, 108 U. 8. 352 53 Consumers L. & P. Co. v. Phipps, 120 Okla. 223 295 Page Converse v. Hamilton, 224 U. S. 243 477 Converse v. Norwich & N. Y. Transp. Co., 33 Conn. 166 134 Conway v. Taylor’s Executor, 1 Black 603 303 Cook v. Marshall County, 196 U. S. 261 349 Cook County Nat. Bank v. United States, 107 U. S. 445 518 Coolidge v. Commissioner, 268 Mass. 443 169 Coolidge v. Long, 282 U. S. 582 326,338,450 Corning v. McCullough, 1 N. Y. 47 450 Corn Products Rfg. Co. v. Eddy, 249 U. S. 427 111 Couthoui v. United States, 54 F. (2d) 158, cert, den., 285 U. S. 548 349 Craig v. Continental Ins. Co., 141 U. S. 638 511 Crain v. United States, 162 U. S. 625 407 Crandall v. Nevada, 6 Wall. 35 407 Crane v. Hahlo, 258 U. S. 142 47,78,449,450 Crescent Cotton Oil Co. v. Mississippi, 257 U. S. 129 529 Crew Levick Co. v. Pennsyl- vania, 245 U. S. 292 408 Critten v. Chemical Nat. Bank, 171 N. Y. 219 216 Crooks v. Harrelson, 282 U. S. 55 231 Crow Dog, Ex parte, 109 U. S. 556 517 Crozier v. Krupp, 224 U. S. 290 104 Cunard S. S. Co. v. Smith, 255 Fed. 846 422 Cunney, In re, 225 Fed. 426 164 Dahlstrom Metallic Door Co. v. Industrial Board, 284 U. S. 594 42,77,78,92 Dahnke-Walker Milling Co. v. Bondurant, 257 U. S. 282 153 LXXVI TABLE OF CASES CITED. Page Dale v. Saunders Bros., 218 N. Y. 59 70 Daniel Ball, The, 10 Wall. 557 55 Danielson v. Entre Rios Rys. Co., 22 F. (2d) 326 421 Darnell & Son Co. v. Memphis, 208 U. S. 113 493 Davidor v. Rosenberg, 130 Wis. 22 208 Davis v. Farmers’ Co-operative Co., 262 U. S. 312 423 Davis v. Hildebrandt, 241 U. S.565 371 Davis v. Leslie, Fed. Cas. No. 3,639 421 Davis v. Mercantile Trust Co., 152 U. S. 590 181 Davis v. Schwartz, 155 U. S. 631 51 Dean v. Shingle, 198 Cal. 652 449,450 Dean v. Smith, 23 Wis. 483 208 De Beam v. Safe Deposit Co., 233 U. S. 24 527 Deer, The, Fed. Cas. No. 3,737; 4 Ben. 352 201 Delaware Railroad Tax Case, 18 Wall. 206 491 De Lima v. Bidwell, 182 U. S. 1 6,256 De Lonjay v. Hartford Accident & Ind. Co., 35 S. W. (2d) 911 84 Dennison v. Payne, 293 Fed. 333 86 Dent v. West Virginia, 129 U. S. 114 301 DePue v. Salmon Co., 90 N. J. L. 550 513 Des Moines Nat. Bank v. Fairweather, 263 U. S. 103 109,489,493 De Witt v. State, 108 Oh. St. 513 84 Dexter v. Edmands, 89 Fed. 467 479 Diamond v. Earle, 217 Mass. 499 225 Diamond Distilleries Co. v. Gott, 137 Ky. 585 216 Page Dickerson v. United States, 20 F. (2d) 901 518 Di Santo v. Pennsylvania, 273 U. S. 34 112 District of Columbia v. Brooke, 214 U. S. 138 339 Dohany v. Rogers, 281 U. S. 362 47,105 Doll v. Ribetti, 203 Fed. 593 82 Dollar Savings Bank v. United States, 19 Wall. 227 479 Dolley v. Abilene Nat. Bank, 179 Fed. 461 109 Donnan v. Heiner, 48 F. (2d) 1058 325 Dorchy v. Kansas, 264 U. S. 286 280 Dorr v. United States, 195 U. S. 138 256 Douglas v. Noble, 261 U. S. 165 301 Douglass v. New York, N. H. & H. R. Co., 279 U. S. 377 87, 423,525 Doyle v. Continental Insur- ance Co., 94 U. S. 535 407 Doyle v. London Guarantee & A. Co., 204 U. S. 599 221 Duignan v. United States, 274 U. S. 195 222 Dunbar v. United States, 156 U. S. 185 433 Dunphy v. Kleinsmith, 11 Wall. 610 406 Eagle, The, 8 Wall. 15 52,419 Eagle Point, The, 142 Fed. 452 419 East Ohio Gas Co. v. Tax Commission, 283 U. S. 465 407 Educational Films Corp. v. Ward, 282 U. S. 379 409, 490,493,494 Eemdyjk, The, 286 Fed. 385 422 Ellis v. Sheffield Co., 2 E. & B. 767 82 El Rio, 162 Fed. 567 203 Empire Trust Co. v. Cahan, 274 U. S. 473 216 Employers’ Liability Cases, 207 U. S. 463 76 Engel v. Davenport, 271 U, S. 33 39,80,87 TABLE OF CASES CITED. LXXVII Page Ennis Water Works v. Ennis, 233 U. S. 652 445 Entick v. Carrington, 19 How. St. Tr. 1029 466 Erie R. Co. v. Collins, 253 U. S. 77 406 Erie R. Co. v. Solomon, 237 U. S. 427 526,527 Erie R. Co. v. Szary, 253 U. S. 86 406 Erie R. Co. v. Winfield, 244 U. S. 170 239 Ester, The, 190 Fed. 216 422 Estis v. Trabue, 128 U. S. 225 179,180 Ettor v. Tacoma, 228 U. S. 148 442,448,450 Euclid v. Ambler Realty Co., 272 U. S. 365 342,348 Evans v. Nellis, 187 U. S. 271 478 Faber v. United States, 221 U. S. 649 6 Fairbank v. United States, 181 U. S. 283 501 Fairfield v. Gallatin County, 100 U. S. 47 407 Fairgrieve v. Marine Ins. Co., 94 Fed. 686 422 Falco, The, 20 F. (2d) 362 422 Farmers Bank v. Federal Re- serve Bank, 262 U. S. 649 451 Farmers Bank v. Minnesota, 232 U. S. 516 350,400 Farmers Loan & Trust Co. v. Funk, 49 Neb. 353 477 Farmers Loan & Trust Co. v. Minnesota, 280 U. S. 204 409 F. Couthoui v. United States, 54 F. (2d) 158, cert, den., 285 U. S. 548 349 Federal Mining & S. Co. v. Thomas, 99 Okla. 24 70 Federal Trade Comm. v. Curtis Pub. Co., 260 U. S. 568 47,70 Federal Trade Comm. v. Klesner, 274 U. S. 145 391 Federal Trade Comm. v. Pacific States Paper Assn., 273 U. S. 52 70 Page Ficklen v. Taxing District, 145 U. S. 1 408 Fidelity & Columbia Trust Co. v. Lucas, 7 F. (2d) 146 346 Fidelity Trust Co. v. Gaskell, 195 Fed. 865 163 First National Bank v. County Commissioners, 264 U. S. 450 78,528 First National Bank v. Hartford, 273 U. S. 548 491 First National Bank v. Maine, 284 U. S. 312 409 Fisk v. Bonner Tie Co., 40 Idaho 304 84 Flannery v. Willcuts, 25 F. (2d) 951 345 Flash v. Conn, 109 U. S. 371 477 Fletcher v. Ingram, 46 Wis. 191 201 Flickenger z. Accident Commission, 181 Cal. 425 84 Flint v. Stone Tracy Co., 220 U. S. 107 338, 490,491,493,494 Forbes v. Gracey, 94 U. S. 762 402,403 Forbes Boat Line v. Commissioners, 258 U. S. 338 450 Fore v. Fore, 44 Ala. 478 76 Fourteen Diamond Rings v. United States, 183 U. S. 176 6 Fourth National Bank v. Francklyn, 120 U. S. 747 478 Francis Wright, The, 105 U. S. 381 53 Franklin Coal Co. v. Industrial Commission, 296 Ill. 329 70,89 Frank Marra Co. v. Norton, 56 F. (2d) 246 68 Fredensbro, The, 18 F. (2d) 983 422 French v. Taylor, 199 U. S. 274 527 Frew v. Bowers, 12 F. (2d) 625 328,350 Friedlander v. Texas & Pac. Ry. Co., 130 U. S. 416 406 Frost v. Corporation Commission, 278 U. S. 515 237, 273,281,283 LXXVIII TABLE OF CASES CITED. Page Galveston, H. & S. A. Ry. Co. v. Texas, 210 U. S. 217 152,408 Garcia v. Vela, 216 U. S. 598 181 Garland v. Washington, 232 U. S. 642 407 Garnett, In re, 141 U. S. 1 39,55 Garrett v. Garrett & Co., 78 Fed. 472 260 Gauzon v. Compania General, 245 U. S. 86 261 Gay v. United States, 12 F. (2d) 433 433 Gazzam v. Phillips’ Lessee, 20 How. 372 406 G. & C. Merriam Co. v. Syndicate Pub. Co., 237 U. S. 618 260 General American Tank Car Corp, v Day, 270 U. S. 367 350,493 General Ry. Signal Co. v. Nit-ginia, 246 U. S. 500 111 Genesee Chief, The, 12 How. 443 49,52,55,407 Georgia, F. & A. Ry. Co. v. Blish Milling Co., 241 U. S. 190 131,135 German Alliance Ins. Co. v. Lewis, 233 U. S. 389 301, 303 Giles v. Little, 104 U. S. 291 406 Gillespie v. Oklahoma, 257 U.S. 501 398,401,403,405 Gilson v. Pennsylvania R. Co., • 86 N. J. L. 446 201 Givens v. Zerbst, 255 U. S. 11 59 Gleason v. Seaboard Air Line Ry. Co., 278 U. S. 349 406 Glenn v. Doyal, 285 U. S. 526 528 Go-Bart Co. v. United States, 282 U. S. 344 463,464 Goble v. Clark, 56 F. (2d) 170 69 Goldman v. Furness, Withy & Co., 101 Fed. 467 421 Gompers v. Bucks Stove & Range Co., 221 U. S. 418 220 Gordon v. Ogden, 3 Pet. 33 406 Gordon v. Tax Appeal Court, 3 How. 133 408 Gorham Mfg. Co. v. Tax Commission, 266 U. S. 265 528 Gorsuch v. United States, 34 F. (2d) 279 518 Page Gouled v. United States, 255 U. S. 298 465,466 Grace & Co. v. Marshall, 56 F. (2d) 441 69 Grafton v. Meikleham, 246 Fed. 737 222 Grafton v. United States, 206 U. S. 333 90 Graham v. Goodcell, 282 U. S. 409 , 474 Grandi v. United States, 262 Fed. 123 432 Grant v. Marshall, 56 F. (2d) 654 69 jrant Smith-Porter Co. v. Rohde, 257 U. S. 469 40 Graves v. Minnesota, 272 U. S. 425 342 Grays Harbor Stevedore Co. v. Marshall, 36 F. (2d) 814 69 Great Atlantic & Pac. Tea Co. v. Maxwell, 284 U. S. 575 349 Great Falls Mfg. Co. v. Attorney General, 124 U. 8. 581 104 Great Northern Ry. Co. v. Galbreath Cattle Co., 271 U. S. 99 135 Great Western Power Co. v. Pillsbury, 170 Cal. 180 76 Green v. Frazier, 253 U. S. 233 285,305 Green v. Industrial Commis-sion, 121 Okla. 211 84 Greenhalgh Co. v. Farmers’ Nat. Bank, 226 Pa. 184 215 Greenwich, The, 270 Fed. 42 203 Greenwood v. Freight Co., 105 U. S. 13 442 Greer v. United States, 245 U. S. 559 406 Gregg Dyeing Co. v. Query, 166 S. C. 117 152 Griffiths & Sprague Stevedoring Co. v. Marshall, 56 F. (2d) 665 69 Grimley, In re, 137 U. S. 147 58.90 TABLE OF CASES CITED. LXXIX Page Group No. 1 Oil Corp. v. Bass, 283 U. S. 279 399,400,401,403 Guarantee Co. v. Mechanics Bank, 80 Fed. 766 189 Guaranty Trust Co. v. New York & Q. C. Ry. Co., 282 U. S. 803 527 Guinzburg v. Anderson, 51 F. (2d) 592 325 Gulf, C. & S. F. Ry. Co. v. Texas, 204 U. S. 403 408 Gundling v. Chicago, 177 U. S. 183 108 Gunning v. Cooley, 281 U. S. 90 147,204 Gunther v. Liverpool & L. & G. Ins. Co., 134 U. S. 110 116 Gunther v. Compensation Commission, 41 F. (2d) ’ 151 69 Guy C. Goss, The, 53 Fed. 826 79 Haas v. Henkel, 216 U. S. 462 520 Hackett v. First Nat. Bank, 114 Ky. 193 215 Hale v. Hardon, 95 Fed. 747 479 Hale v. Wharton, 73 Fed. 739 225 Hall v. Spaulding, 42 N. H. 259 117 Hall v. White, 48 F. (2d) 1060 325 Hall & Long v. Railroad Cos., 13 Wall. 367 214 Hamilton, The, 207 U. S. 398 39 Hammerschmidt v. United States, 265 U. S. 182 521 Hammond Packing Co. v. Arkansas, 212 U. S. 322 451 Hancock Nat. Bank v. Farnum, 176 U. S. 640 479 Handy v. Delaware Trust Co., 285 U. S. 352 332 Hannis Distilling Co. v. Baltimore, 216 U. S. 285 527 Hanover Milling Co. v. Metcalf, 240 U. S. 403 260 137818°—32---vt Page Hardee v. Wilson, 146 Ü. S. 179 181 Hardware Dealers Mut. Fire Ins. Co. v. Glidden Co., 284 U. S. 151 47, 78,111,240,342 Harris v. Commissioner, 39 F. (2d) 546 140 Harrison v. Remington Paper Co., 140 Fed. 385 442,448 Hartford Accident & Ind. Co. v. Southern Pac. Co., 273 U. S. 207 39,49,512 Haseltine v. Central Bank, 183 U. S. 130 178 Hassenbusch, In re, 108 Fed. 38 208 Hatch v. Reardon, 204 U. S. 152 349 Hawke v. Smith, No. 1, 253 U. S. 221 365,372 Hawkins v. Bleakly, 243 U. S. 210 238 Hawthorne v. Calef, 2 Wall. 10 442,444,450 Hays v. Port of Seattle, 251 U. S. 233 105 Head v. Amoskeag Mfg. Co., 113 U. S. 9 274 Heald v. District of Columbia, 259 U. S. 114 234 Hebe Co. v. Shaw, 248 U. S. 297 111 Hebert v. Louisiana, 272 U. S. 312 527,528 Heff, Matter of, 197 U. S. 488 407 Heiner v. Colonial Trust Co., 275 U. S. 232 187,400 Heiner v. Donnan, 285 U. S. 312 354 Heisler v. Thomas Colliery Co., 260 U. S. 245 152; 529 Helson v. Kentucky, 279 U. S. 245 153,407 Henderson v. Peter Henderson & Co., 9 F. (2d) 787 260 Henley v. Myers, 215 U. S. 373 474,479 Henrietta Mills v. Rutherford County, 281 U. S. 121 528 Henry v. A. B. Dick Co., 224 U. S. 1 406 LXXX TABLE OF CASES CITED. Page Hepburn v. Griswold, 8 Wall. 603 407 Heredia v. Davies, 12 F. (2d) 500 422 Herring-Hall-Marvin Safe Co. v. Hall’s Safe Co., 208 U. S. 554 260 Herron v. Southern Pac. Co., 283 U. S: 91 61 Hertz v. Woodman, 218 U. S. 205 406 Hill v. Merchants Mut. Ins. Co., 134 U. S. 515 479 Hillen v. Accident Commis- sion, 199 Cal. 577 69 Hill’s Case, 268 Mass. 491 70 Himely v. Rose, 4 Cranch 241 407 Hoage v. Murch Bros. Const. Co., 50 F. (2d) 983 69 Hoeper v. Tax Commission, 284 U. S. 206 142,324,328 Hohman v. State, 122 Okla. 45 299 Home Insurance Co. v. Hew York, 134 U. S. 594 489 Homer Ramsdell Co. v. Compagnie Generale Transatlantique, 182 U. S. 406 42 Home Tel. & Tel. Co. v. Los Angeles, 227 U. S. 278 407 Hope Natural Gas Co. v. Hall, 274 U. S. 284 348 Hombuckle v. Toombs, 18 Wall. 648 406 Houston v. St. Louis Packing Co., 249 U. S. 479 51 Houston Ship Channel Steve- doring Co. v. Sheppeard, 57 F. (2d) 259 69 Howard v. Monahan, 31 F. (2d) 480 69 Howard v. Monahan, 33 F. (2d) 220 . 43 Howard v. United States, 65 Ct. Cis. 332 345 Hudson v. Guestier, 6 Cranch 281 407 Huffaker v. Fairfax, 115 Okla. 73 300 Hughes, In re, 262 Fed. 500 164 Huntington v. Attrill, 146 • U. S. 657 441 Page Hygrade Provision Co. v. Sherman, 266 U. S. 497 111 Hylton v. United States, 3 Dall. 171 407 Hypodame, The, 6 Wall. 216 510 Ibanez v. Hong Kong Bank- ing Corp., 246 U. S. 627 261 Illinois Automobile Ins. Exchange v. Braun, 280 Pa. 550 215 Illinois Central R. Co. v. Behrens, 233 U. S. 473 239 Illinois Central R. Co. v. McKendree, 203 U. S. 514 77 Imperial Fire Ins. Co. v. Coos County, 151 U. S. 452 116 Independent Pier Co. v. Norton, 54 F. (2d) 734 68 Index Mines Corp. v. Industrial Commission, 82 Colo. 272 70 Indian Motocycle Co. v. United States, 283 U. S. 570 152,400 Industrial Commission v. Continental Investment Co., 78 Colo. 398 84 Industrial Commission v. Nordenholt Corp., 259 U. S. 263 55 Infanta, The, Fed. Cas. No. 7,030 421 Insurance Co. v. Dunn, 19 Wall. 214 86 Insurance Co. v. Stinson, 103 U. S. 25 216 Inter-Island Steam Nav. Co. v. Ward, 242 U. S. 1 6 International Harvester Co. v. Carlson, 217 Fed. 736 164 International Shoe Co. v. Federal Trade Comm,, 280 U. S. 291 47,51,70 International Shoe Co. v. Shartel, 279 U. S. 429 349 International Silver Co. v. S. L. & G. H. Rogers Co., 110 Fed. 955 260 International Text-Book Co. v. District of Columbia, 35 App. D, C. 307 112 TABLE OF CASES CITED. LXXXI Page Interstate Busses Corp. v. Blodgett, 276 U. S. 245 350 Interstate Busses Corp. v. Holyoke St. Ry. Co., 273 U. S. 45 238,240 Interstate Commerce Comm. v. Baird, 194 U. S. 25 48 Interstate Commerce Comm. v. Humboldt S. S. Co., 224 U. S. 474 54 Interstate Commerce Comm. v. Illinois Central R. Co., 215 U. S. 452 75 Interstate Commerce Comm. v. Louisville & N. R. Co., 227 U. S. 88 48,50,70,93 Interstate Commerce Comm. v. Northern Pac. Ry. Co., 216 U. S. 538 93 Iowa Central Ry. Co. v. Iowa, 160 U. S. 389 526 Iquitos, The, 286 Fed. 383 421 Iron Dyke Copper Min. Co. v. Iron Dyke R. Co., 132 Fed. 208 225 Iroquois, The, 194 U. S. 240 41 Irvine v. Elliott” 203 Fed. 82 474 Isthmian S. S. Co. v. United States, 53 F. (2d) 251 70 Ives v. South Buffalo Ry. Co., 201 N. Y. 271 409 Jackson v. People, 9 Mich. Ill 76 Jarka Corp. v. Monahan, 48 F. (2d) 283 68 Jarka Corp. v. Norton, 56 F. (2d) 287 68 Jaybird Mining Co. v. Weir, 271 U. S. 609 400,405 Jefferson Branch Bank v. Skelly, 1 Black 436 441,491 Jello-0 Co. v. Landes, 20 F. (2d) 120 112 Jin Fuey Moy v. United States, 254 U. S. 189 406 John G. Stevens, The, 170 U. S. 113 201 Johnson Farm Loan Co. v. McManigal, 288 Fed. 185 222 Jones v. Bacon, 145 N. Y. 446 214 Page Jones v. Pettingill, 245 Fed. 269 222 Jones v. Portland, 245 U. S. 217 . 305 Jones v. Sanitary District, 265 Ih. 98 117 Joslin Mfg. Co. v. Providence, 262 U. S. 668/ 105 Joyce v. Deputy Commissioner, 33 F. (2d)'218 68 J. P. Donaldson, The,. 167 U. S. 599 200 Justices v. Murray, 9 Wall. 274 86 Kaiser Wilhelm der. Grosse, The, 175 Fed. 215 421 Kansas City Sou. Ry. Co. v. Carl, 227 U. S. 639 135 Karoo, The, 49 Fed. 651 421 Keeney v. New York, 222 U. S. 525 349 Kehrer v. Stewart, 197 U. S. 60 152 Keller v. Potomac Elec. Power Co., 261 U. S. 428 50 Kenney & Greenwood, In re, 23 F. (2d) 681 164 Keokee Consolidated Coke Co. v. Taylor, 234 U. S. 224 348 Kepner v. United States, 195 U. S.100 208 Kestor, The, 110 Fed. 432 422 Keyway Stevedoring Co. v. Clark, 43 F. (2d) 983 68 Kilbourn v. Thompson, 103 U. S. 168 408 Killgore v. Zinkham 274 Fed. 140 71 Kimberly v. Arms, 129 U .S. 512 51,79 King & Co. v. Horton, 276 U. S. 600 526,527 Kirk v. Board of Health, 83 S. C. 372 89 Kline v. Burke Construction Co., 260 U. S. 226 86 Knappingsborg, The, 26 F. (2d) 935 422 Knickerbocker Ice Co’, v. Stewart, 253 U. S. 149 39, 41,514 LXXXII TABLE OF CASES CITED. Page Knickerbocker Trust Co. v. Myers, 133 Fed. 764 442 Knights Templars’ Indemnity Co. v. Jarman, 187 U. S. 197 76 Knowlton v. Moore, 178 U. S. 41 322,348 Koenig v. Flynn, 258 N. Y. ' 292 370 Kountze v. Omaha Hotel Co., 107 U. S. 378 406 Kranski v. Atlantic Coast Shipping Co., 56 F. (2d) 166 69 Kunhardt v. Bowers, 57 F. (2d) 1054 344 Kunkle Bros., The, 211 Fed. 540 203 Kurczak v. United States, 14 F. (2d) 109 518 LaBelle Iron Works v. United States, 256 U. S. 377 234,338 La Bourgogne, 144 Fed. 781 51,79 La Bourgogne, 210 U. S. 95 511 Lady Furness, The, 84 Fed. 679 421 Lake Shore & M. S. Ry. Co. v. Ohio, 173 U. S. 285 304 Lake Shore & M. S. Ry. Co. v. Smith, 173 U. S. 684 407,442 Lake Superior & M. R. Co. v. United States, 93 U. S. 442 243 Lake Washington Shipyards v. Brueggeman, 56 F. (2d) 665 69 Lamb v. Cramer, 285 U. S. 217 224 Lamington, The, 87 Fed. 752 422 Langnes v. Green, 282 U. S. 531 418,420 La Tourette v. McMaster, 248 U. S. 465 525 Lawrence v. Hyde, 77 W. Va. 639 117 Lawton v. Steele, 152 U. S. 13.3 529 Leach v. Nichols, 285 U. S. 165 336 Leach v. Savings Bank, 203 Iowa 1052 475 League v. Texas, 184 U. S. 156 474,479 Page Lea Mathew Shipping Corp. v. Marshall, 56 F. (2d) 860 69 Leather Mfrs. Bank v. Morgan, 117 U. S. 96 216 Leathers v. Blessing, 105 U. S. 626 513 Lee v. Chesapeake & O. Ry. Co., 260 U. S. 653 406 Legal Tender Cases, 12 Wall. 457 284,407 Leisy v. Hardin, 135 U. S. 100 407 Leloup v. Port of Mobile, 127 U. S. 640 407 Leman v. Krentler- Arnold Hinge Last Co., 284 U. S. 448 . 221 Lemke v. Farmers Grain Co., 258 U. S. 50 153 Leser v. Garnett, 258 U. S. 130 366 Liggett Co. v. Baldridge, 278 U. S. 105 278 Lilian M. Vigus, The, Fed. Cas. No. 8346 421 Lindsley v. Natural Carbonic Gas Co., 220 U. S. 61 529 Livengood v. Ball, 63 Okla. 93 227 Liverpool & London Ins. Co. v. Gunther, 116 U. S. 113 116 Lochner v. New York, 178 U. S. 45 408 Loetscher v. Burnet, 60 App. D. C. 38 345 Loftus v. Pennsylvania R. Co., 107 Oh. St. 352 525 Logan v. Bank of Scotland, (1906) 1 K. B. 141 423 Logan v. Provident Society, 57 W. Va. 384 118 Lohr v. Wolfe, 71 W. Va. 627 117 Lombard v. Park Commissioners, 181 U. S. 33 527,528 London Guarantee & Accident Co. v. Industrial Comm., 279 U. S. 109 40,55 London Joint Stock Bank v. MacMillan & Arthur, [1918] A. C. 777 216 TABLE OF CASES CITED. LXXXIII Page London Street Tramways Co. v. County Council, (1898) A. C. 375 410 Long Island Water Supply Co. v. Brooklyn, 166 U. S. 685 47,78 Lord v. County Commissioners, 105 Me. 556 76 Los Angeles v. Young, 118 Cal. 295 76 Los Angeles Brush Mfg. Corp. v. James, 272 U. S. 701 78,79 Lottawanna, The, 21 Wall. 558 39 Louisiana v. New Orleans, 109 U. S. 285 450 Louisiana Navigation Co. v. Oyster Commission, 226 U. S. 99 179 Louisiana Ry. & Nav. Co. v. New Orleans, 235 U. S. 164 441 Louis Pisitz Dry Goods Co. v. Yeldell, 274 U. S. 112 82 Louisville, C. & C. R. Co. v. Letson, 2 How. 497 407 Louisville & N. R. Co. v. United States, 245 U. S. 463 70 Lower Vein Coal Co. v. Industrial Board, 255 U. S. 144 * 42 L. P. Dayton, The, 120 U. S. 337 200 Lucas v. Alexander, 279 U. S. 573 62 Lucas v. Earl, 281 U. S. Ill 141,142 Luckenbach S. S. Co. v. United States, 272 U. S. 533 53 Luscomb v. Commissioner, 30 F. (2d) 818 344 Macallen Co. v. Massachusetts, 279 U. S. 620 409, 490,491,494,497 Madera Sugar Pine Co. v. Industrial Comm., 262 U. S. 499 42,238 Magee v. Commissioner, 256 Mass. 512 169 Page Maggie Hammond, The, 9 Wall. 435 420 Magoun v. Illinois Trust & S. Bank, 170 U. S. 283 348 Maine v. Grand Trunk Ry. Co., 142 U. S. 217 408 Manchester v. Massachusetts, 139 U. S. 240 529 Manhattan Co. v. Blake, 148 U. S. 412 490 Manigault v. Springs, 199 U. S. 473 105 Manley v. Georgia, 279 U. S. 1 280,329 Manufacturers Ry. Co. v. United States, 246 U. S. 457 93 Marcus Brown Holding Co. v. Feldman, 256 U. S. 170 306 Marin v. Augedahl, 247 U. S. 142 86 Marine Transit Corp. v. Dreyfus, 284 U. S. 263 49 Marion & Rye Valley Ry. Co. v. United States, 270 U. S. 280 104 Market Co. v. Hoffman, 101 U. S. 112 208 Marks v. Carne (1909), 2 K. B. 516 84 Marriott v. Brune, 9 How. 619 6 Marron v. United States, 275 U. S. 192 465 Marshall v. Baltimore & O. R. Co., 16 How. 314 407 Maryland Casualty Co. v. Dickerson, 213 Ky. 305 216 Mason v. Eldred, 6 Wall. 231 406 Mason v. Routzahn, 275 U. S. 175 68 Mason v. The Blaireau, 2 Cranch 240 420 Mason v. United States, 17 F. (2d) 317 346 Mason v. United States, 136 U. S. 581 181 Masterson v. Herndon, 10 Wall. 416 180 Mather v. McLaughlin, 57 F. (2d) 223 345 LXXXIV TABLE OF CASES CITED. Page Matheus v. U. S. ex rel. Cunningham, 282 U. S. 802 529 Matthews v. Huwe, 269 U. S. 262 180 McBride v. Neal, 214 Fed. 966 222 McCahan Sugar Rfg. Co. v. Norton, 43 F. (2d) 505 68 McCaughn v. Carvill, 43 F. (2d) 69 346 McClellan v. Carland, 217 U. S. 268 419,423 McClure v. Commissioner, 56 F. (2d) 548 344 McCray v. United States, 195 U. S. 27 349 McCulloch v. Maryland, 4 Wheat. 316 467 McDonald v. Oregon Navigation Co., 233 U. S. 665 527 McDowell v. Duer, 78 Ind. App. 440 84 McKenna v. Anderson, 31 F. (2d) 1016, cert, den., 279 U. S. 869 349 McLean v. Arkansas, 211 U. S. 539 285 McNamara v. Gaylord, 3 Oh. Fed. Dec. 543, 1 Bond 302 140 McPherson v. Blacker, 146 U. S. 1 369 Medburv v. United States, 173 U. S. 492 90 Mellen v. Moline Malleable Iron Works, 131 U. S. 352 219 Mensevich v. Tod, 264 U. S. 134 7 Merchants’ & Miners’ Transp. Co. v. Norton, 32 F. (2d) 513 68 Meredith v. United States, 13 Pet. 486 477,479 Merriam v. Hartford & N. H. R. Co., 20 Conn. 354 134 Merrick v. N. W. Halsey & Co., 242 U. S. 568 285 Merrimack River Savings Bank v. Clay Center, 219 U. S. 527 220 Messel v. Foundation Co., 274 U. S. 427 40, 514 Page Metcalf v. Barker, 187 U. S. 165 219 Metcalf & Eddy v. Mitchell, 269 U. S. 514 399,400 Metropolis Theatre Co. v. Chicago, 22C U. S. 61 349 Meyer v. United States, 60 Ct. Cis. 474 345 Michigan Transit Corp. v. Grown, 56 F. (2d) 200 69 Middletown Bank v. Railway Co., 197 U. S. 394 478 Milan, The, Lush. Adm. 401 418 Miller v. Horton, 152 Mass. 540 59,89 Miller v. McLaughlin, 281 U. S. 261 529 Miller v. Milwaukee, 272 U. S. 713 491,493,496 Miller v. Robertson, 266 U. S. 243 190 Miller v. Schoene, 276 U. S. 272 348 Miller v. United States, 300 Fed. 529 463 Miller v. Wilson, 236 U. S. 373 111,348 Millers’ Indemnity Underwriters v. Braud, 270 U. S. 59 40 Milliken v. United States, 283 U. S. 15 322, 337,339,342,350,474 Mills v. Scott, 99 U. S. 25 477 Milwaukee Western Fuel Co. v. Industrial Comm. 159 Wis. 635 76 Minnesota v. First Nat. Bank, 273 U. S. 561 491 Minnesota Iron Co. v. Kline, 199 U. S. 593 238 Minter v. Crommelin, 18 How. 87 59 Missouri v. Dockery, 191 U. S. 165 .... 348 Missouri ex rel. Hurwitz 'v' North, 271 U. S. 40 57,78 Missouri,-K. & T. Ry. Co. v. May, 194 U. S. 267 348 Missouri, K. & T. Ry. Co. v. Ward, 244 U. S. 383 135 TABLE OF CASES CITED. LXXXV Page Missouri Pacific Ry. Co. v. Boone, 270 U. S. 466 62,76 Missouri Pacific Ry. Co. v. Kansas, 248 U. S. 276 369 Missouri Pacific Ry. Co. v. Mackey, 127 U. S. 205 238 Missouri Pacific Ry. Co. v. Reynolds - Davis Grocery Co., 268 U. S. 366 131,135 Missouri Pacific Ry. Co. v. Tucker, 230 U. S. 340 41 Mitchel v. Bowers, 15 F. (2d) 287 140 Mitchell v. Burlingham, 4 Wall. 270 407 Mobile, J. & K. C. R. Co. v. Turnipseed, 219 U. S. 35 329 Mobile & Ohio R. Co. v. Tennessee, 153 U. S. 486 441 Moffitt v. Kelly, 218 U. S. 400 526,528 Montapedia, The, 14 Fed. 427 421 Montgomery v. Thompson, (1891) A. C. 217; 64 L. T. R. 748 260 Moore, In re, 209 U. S. 490 406 Moran v. Bowley, 179 N. E. 526 370 Morgan v. United States, 113 U. S. 476 407 Morrissey, In re, 137 U. S. 157 59,90 Morse Drydock & Repair Co. y. Northern Star, 271 U. S. 552 39 Morton v. Nebraska, 21 Wall. 660 59 Moss v. Smith, 171 Cal. 777 445, 451 Moss Tie Co. v. Tanner, 44 F. (2d) 928 69 Motion Picture Co. v. Film Co., 243 U. S. 502 406 Mountain Timber Co. v. Washington, 243 U. S. 219 42 47,238 Mugler v. Kansas, 123 U. S. 623 303 Muir v. The Brig Brisk, Fed. Cas. No. 9901 421 Page Muller v. Oregon, 208 U. S. 412 286,408 Mulrooney v. Todd (1909), 1 K. B. 165 84 Munn v. Illinois, 94 U. S. 113 284,293,302,408 Murphy v. California, 225 U. S. 623 348 Murphy v. Shipley, 200 Iowa 857 70 Murray v. Wasatch Grading Co., 73 Utah 430 84 Murray’s Lessee v. Hoboken • Land Co., 18 How. 272 49,50 Musey v. United States, 37 F. (2d) 673 433 Mutual Film Corp. v. Indus- trial Comm., 236 U. S. 230 112 Myers v. United States, 272 U. S. 52 369 Napa State Hospital v. Fla- herty, 134 Cal. 315 447,451 Napa Valley Electric Co. v. Railroad Comm., 251 U. S. 366 78 Napoleon, The, Fed. Cas. No. 10015 421 National Bank v. Whitney, 103 U. S. 99 406 Neal v. Commissioner, 53 F. (2d) 806 344 Near v. Minnesota, 283 U. S. 697 280 Nelson v. Marshall, 56 F. (2d) 654 69 Neptune Steam Nav. Co. v. Sullivan Timber Co., 37 Fed. 159 422 Netograph Co. v. Scrugham, 197 N. Y. 377 225 New Amsterdam Casualty Co. v. Hoage, 46 F. (2d) 837 69 Newberry v. United States, 256 U. S. 232 367 New Brunswick v. United States, 276 U. S. 547 402 New Jersey Tel. Co. v. Tax Board, 280 U.S. 338 152 Newman, Ex parte, 14 Wall. 152 420 LXXXVI TABLE OF GASES CITED. Page New Orleans City & L. R. Co. v. New Orleans, 143 U. S. 192 408 New Orleans Waterworks v. Louisiana Sugar Co., 125 U. S. 18 441 New York v. Latrobe, 279 U. S. 421 349 New York v. Miln, 11 Pet. 102. 408 New York, The, 104 Fed. 561 181 New York, The, 175 U. S. 187 418,419 New York Central R. Co. v. Chisholm, 268 U. S. 29 418 New York Central R. Co. v. White, 243 U. S. 188 42, 47,78,82,238 New York City v. Pine, 185 U. S. 93 104 New York & Queens Gas Co. v. McCall, 219 N. Y. 84 75 New York & Queens Gas Co. v. McCall, 245 U. S. 345 78 New York Trust Co. v. Eis- ner, 256 U. S 345 169,336 Ng Fung Ho v. White, 259 U. S. 276 46,60,61,90 Nichols v. Coolidge, 274 U. S. 531 326,338,350,351 Nichols v. Horton, 14 Fed. 327 225 Nickel v. Cole, 256 U. S. 222 526, 528 Nicol v. Ames, 173 U. S. 509 342 Nixon v. Herndon, 273 U. S. 536 280 Nixon v. Nash, 12 Oh. St. 647 140 Noble v. Union River Logging Co., 147 U. S. 165 59,85,91 Noble State Bank v. Haskell, 219 U. S. 104 476 Noddleburn, The, 30 Fed. 142 422 Nogueira v. New York, N. H. & H. R. Co., 281 U. S. 128 39, 42 55 Noonan v. Lee, 2 Black 499 406 Norfolk Turnpike Co. v. Vir- ginia, 225 U. S. 264 179 Norris Coal Co. v. Jackson, 80 Ind. App, 423 70 j Page North American Cold Storage Co. v. Chicago, 211 U. S. 306 89 Northern Coal Co. v. Strand, 278 U. S. 142 39,40 Northern Pacific Ry. Co. v. Dept, of Public Works, 268 U. S. 39 78 Northern Pacific Ry. Co. v. Solum, 247 U. S. 477 78 North Star, The, 151 Fed. 168 52 North Star, The, 106 U. S. 17 510 Northwestern Insurance Co. v. Wisconsin, 275 U. S. 136 400 Northwestern Stevedoring Co. v. Marshall, 41 F. (2d) 28 69 Nyack, The, 199 Fed. 383 52 O’Banner v. Pendlebury, 107 N. J. L. 245 84 Obrecht - Lynch Corp. v. Clark, 30 F. (2d) 144 68 Ocean Accident & G. Corp. v. Wilson, 36 Ga. App. 784 69,70 Ochiltree v. Railroad Co., 21 Wall. 249 442 Oelwerke Teutonia v. Erlanger, 248 U. S. 521 510 Off v. United States, 35 F. (2d) 222 345 Ogden v. Saunders, 12 Wheat. 213 341 O’Gorman & Young v. Hartford Fire Ins. Co., 282 U. S. 251 111,240,284,342 Ohio Valley Water Co. v. Ben Avon Borough, 253 U. S. 287 46,60,80,91,92 Oklahoma Light & P. Co. v. Corporation Comm., 96 Okla. 19 291,295 Oklahoma Pipe Line Co. v. Lindsey, 113 Okla. 296 70 Olmstead v. United States, 277 U. S. 438 406 Olsen v. United States, 287 Fed. 85 433 One Hundred and Ninety-four Shawls, Fed. Cas. No. 10521 421 TABLE OF OASES CITED. LXXXVII Page Orchard v. Hughes, 1 Wall. 77 406 Oregon R. L. Co. v. Portland & A. S. S. Co., 162 Fed. 912 511 Oregon Ry. & N. Co. v. Fair-child, 224 U. S. 510 78,79 Oregon-Washington R. & N. Co. v. McGinn, 258 U. S. 409 134 Orleans v. Phoebus, 11 Pet. . 175 407 Osborne v. Missouri Pac. Ry. Co., 147 U. S. 248 104 Osborne v. Mobile, 16 Wall. 479 407 Osceola, The, 189 U. S. 158 41 Pacific Co. v. Johnson, 285 U. S. 480 409 Pacific Live Stock Co. v. Lewis, 241 U. S. 440 78 Pacific R. Co. v. Missouri Pac. Ry. Co., Ill U. S. 505 227 Paddell v. New York, 211 U. S. 446 349 Page Co. v. MacDonald, 261 U. S. 446 225,227 Pagel v. Creasy, 6 Oh. App. 199 140 Palumbo v. Fuller Co., 99 Conn. 355 84 Panama R. Co. v. Johnson, 264 U. S. 375 39, 46,49, 55,62,80 Panama R. Co. v. Napier Shipping Co., 166 U. S. 280 419,420 Panama R. Co. v. Vasquez, 271 U. S. 557 39,87 Panhandle Oil Co. v. Knox, 277 U. S. 218 152,400 Parker v. Hotchkiss, Fed. Cas. No. 10,739 225 Parker v. Marco, 136 N. Y. 585 225 Parker-Washington Co. v. Industrial Board, 274 Ill. 498 84 Parsons v. Empire Trans. Co., Ill Fed. 202 511 Passavant v. United States, 148 U. S. 214 51,901 Page Passenger Cases, 7 How. 283 408 Patterson v. The Eudora, 190 U. S. 169 422 Patterson v. Winn, 11 Wheat. 380 59 Pawashick, The, Fed. Cas. No. 10,851 421 Pawhuska v. Pawhuska Oil & Gas Co., 28 Okla. 563 300 Peabody v. United States, 231 U. S. 530 104 Pearcy v. Stranahan, 205 U. S. 257 6 Pearson v. Zehr, 138 Ill. 48 60,89 Pedersen v. Delaware, L. & W. R. Co., 229 U. S. 146 239 Pedersen v. Spreckles, 87 Fed. 938 203 Peik v. Chicago & N. W. Ry. Co., 94 U. S. 164 408 Peirce v. New Hampshire, 5 How. 504 407 Pennsylvania Gas Co. v. Public Service Comm., 252 U. S. 23 407 Pennsylvania R. Co. v. Towers, 245 U. S. 6 407 People v. Adams State Bank, 272 Ill. 277 474 People v. Potts, 264 Ill. 522 189 People v. Rose, 174 Ill. 310 189 Peoples National Bank v. Equalization Board, 260 U. S. 702 489 Pesaro, The, 255 U. S. 216 221 Philadelphia S. S. Co. v. Pennsylvania, 122 U. S. 326 408 Philippine Sugar Co. v. Philippine Islands, 247 U. S. 385 261 Phillips v. Commissioner, 283 U. S. 589 46, 47,51,60,67,71,139 Phillips v. Dime Trust & S. D. Co., 284 U. S. 160 337, 351 Phillips v. Gnichtel, 27 F. (2d) 662, cert, den., 278 U. S. 636 343 Phipps v. United States, 251 Fed, 879 432 LXXXVII1 TABLE OF CASES CITED. Page Phoenix Assur. Co. v. Frank- lin Brass Co., 58 Fed. 166 117 Pickard v. Smith, 10 C. B. (n. s.) 470 82 Pierce, Ex parte, 155 Fed. 663 433 Pierce v. Creecy, 210 U. S. 387 433 Pierce v. Sisters, 268 U. S. 510 280 Pierce v. United States, 255 U. S. 398 219 Pinney v. Nelson, 183 U.S.-144 475 Pitts v. Peake, 50 F. (2d) 485 • 391 Pocket Veto Case, 279 U. S. 655 369 Pocahontas Fuel Co. v. Mon- ahan, 41 F. (2d) 48 68 Poe v. Seaborn, 282 U. S. 101 142 Polk v. Wendell, 9 Cranch 87 59 Pollard v. Bailey, 20 Wall. 520 478 Pollock v. Farmers Loan & T. Co., 157 U. S. 429 400 Pollock v. Farmers Loan & T. Co., 158 U. S 601 407,409 Porto Rico Ry. Co. v. Mor, 253 U. S. 345 6 Portsmouth Harbor Land Co. v. United States, 250 U. S. 1 104 Postum Cereal Co. v. Cali- fornia Fig Nut Co., 272 U. S. 693 50 Pratt v. Railway Co., 95 U. S. 43 134 Prendergast v: N. Y. Tele- phone Co., 262 U. S. 43 46,60 Prentis v. Atlantic Coast Line, 211 U. S. 210 57 Presser v. Illinois, 116 U. S. 252 76 Price v. Illinois, 238 U. S. 446 285 Price v. United States, 269 U. S. 492 477,479 Pritchard v. Norton, 106 U. S. 124 442 Page Producers Transportation Co. v. Railroad Comm., 251 U. S. 228 284 Propeller Burlington, The, 137 U. S. 386 200 Providence Bank v. Billings, 4 Pet. 514 491 Provident Institution v. Massachusetts, 6 Wall. 611 489 P. R. R. No. 35, The, 48 F. (2d) 122 79 P. Stanford Ross v. Public Service Corp., 42 F. (2d) 79 52 Public National Bank, Ex parte, 218 U. S. • 101 ... 209 Pullman Car Co. -v. Pennsyl- vania, 141 U. S. 18 ■ ... 407 Qualpv. Stewart Co., 266 Pa. 502 84 Quickstep, The, 9 Wall. 665 201 Quong Wing v. Kirkendall, 223 U. S. 59 349 Quon Quon Poy v. Johnson, 273 U. S. 352 90 Raley & Bros. v. Richardson, 264 U. S. 157 109 Ralli v. Troop, 157 U. S. 386 42 Ramsay Co. v. Associated Bill Posters, 260 U. S. 501 111 Rast v. Van Deman & Lewis Co., 240 U. S..342 108,285 Rawlins v. Georgia, 201 U. S. 638 527,528 R. B. Little, The, 215 Fed. 87 203 Rea v. Heiner, 6 F. (2d) 389 345 Red Cross Line v. Atlantic Fruit Co., 264 U. S. 109 40 Reinecke v. Northern Trust Co., 278 U. S. 339 , 323, 330,338,340,351 Reinman v. Little Rock, 237 U. S. 171. 348 Rengstorff v. McLaughlin, 21 F. (2d) 177 344 Reymann Brewing Co. v. Brister, 179 U. S. 445 493 Reynolds v. Stockton, 140 U. S. 254 85 Rhodes v. Cousins, 6 Rand. 188 209 TABLE OF CASES CITED. LXXXIX Page Rhodes v. U. S. National Bank, 66 Fed. 512 479 Rice & Givens v. Citizens Nat. Bank, 51 S. W. 454 216 Richmond Screw Anchor Co. v. United States, 275 U. S. 331 62 Rizo v. Burruel, 23 Ariz. 137 227 Roberts v. Lewis, 153 U. S. 367 406 Robert W. Parsons, The, 191 U. S. 17 419 Robins Dry Dock & Repair Co. v. Dahl, 266 U. S. 449 40 Rockafellow v. Miller, 107 N. Y. 507 140 Rodgers v. United States, 185 U. S. 83 517 Roe v. Kansas, 278 U. S. 191 526,527 Rogers v. Burlington, 3 Wall. 654 407 Rogers v. Wm. Rogers Mfg. Co., 70 Fed. 1019 260 Root v. United States, .56 F. (2d) 857 346 Root v. Woolworth, 150 U. S. 401 221 Rosen v. United States, 161 U. S. 29 431 Rosen v. United States, 245 U. S. 467 406 Rosenberg Bros. & Co. v. Curtis Brown Co., 260 U. S. 516 221 Rosenthal v. Walker, 111 U. S. 185 430 Rothe v. Pennsylvania Co., 195 Fed. 21 119 Rothschild & Co. v. Marshall, 56 F. (2d) 415 69 Royal Exch. Assur. v. Thrower, 246 Fed. 768 117 Runkle v. United States, 122 U. S. 543 408 Russia,’ The, Fed. Cas. No. .12,168 422 Rust Land Co. v. Jackson, 250 U. S. 71 178 Page R. W. Rogers Co. v. Wm. Rogers Mfg. Co., 70 Fed. 1017 260 Sacramento Navigation Co. v. Saiz, 273 U. S. 326 190 Safford v. United States, 65 Ct. Cis. 242 345 Sailor’s Bride, The, Fed. Cas. No. 12,220 421 St. John v. New York, 201 U. S. 633 339 St. Louis, I. M. & S. Ry. Co. v. Commercial Ins. Co., 139 U. S. 223 214 St. Louis, I. M. & S. Ry. Co. v. Taylor, 210 U. S. 281 82 St. Louis Land Co. v. Kansas City, 241 U. S. 419 527 St. Louis & S. F. Ry. Co. v. Mathews, 165 U. S. 1 82 Salomon v. Tax Commission, 278 U. S. 484 349 Salomoni, The, 29 Fed. 534 421 Saltonstall v. Saltonstall, 276 U. S. 260 169,323 Sampson v. Graves, 208 App. Div. 522 226 Sanbern v. Wright & Cobb Co., 171 Fed. 449, aff’d, 179 Fed. 1021 511 Sandel v. South Carolina, 269 U. S. 532 527 Sawyer, Ex parte, 21 Wall. 235 181 Sawyer v. Old Lowell Nat. Bank, 230 Mass. 342 201 Schaffer v. Hampton Ins. Co., 235 N. W. 618 117 Schechter v. United States, 7 F. (2d) 881 463 Schlesinger, Estate of, 184 Wis. 1 331 Schlesinger v. Wisconsin, 270 .U. S. 230 324,326,328,336,338 Schlosser v. Hemphill, 198 i U. S. 173 179 Schoenheit v. Lucas, 44 F. (2d) 476 344 Schrader v. Polley, 26 S. D. 5 370 Scotland, The, 105 U. S. 24 419 xc TABLE OF CASES CITED. Page Scott v. McNeal, 154 U. S. 34 441 Seabury v. Arkansas Natural Gas Corp., 171 La. 199 84 Second Employers’ Liability Cases, 223 U. S. 1 87,419,423 Second National Bank v. First Nat. Bank, 242 U. S. 600 179 Security Mutual Life Ins. Co. v. Prewitt, 202 U. S. 246 407 Seirstad, The, 12 F. (2d) 133 422 Shafer v. Farmers Grain Co., 268 U. S. 189 153 Shaffer v. Carter, 252 U. S. Q7 221 Shakman v. U. S. Credit Sys- tem Co., 92 Wis. 366 189 Shanks v. Delaware, L. & W. R. Co., 239 U. S. 556 238 Shaw v. Oil Corp., 276 U. S. 575 400 Sheehan Co. v. Shuler, 265 U. S. 371 42 Sheehy v. Mandeville, 6 Cranch 253 406 Shelden v. Sill, 8 How. 441 86 Shelton v. The Collector, 5 Wall. 113 406 Sherlock v. Alling, 93 U. S. 99 42,238,513 Sherlock v. Sherlock, 112 Neb. 797 84 Shevlin - Carpenter Co. v. Minnesota, 218 U. S. 57 340 Shields v. Ohio, 95 U. S. 319 442 Showers v. Crowell, 46 F. (2d) 361 69 Siebold, Ex parte, 100 U. S. 371 367 Silberschein v. United States, 266 U. S. 221 47,51,90 Sims v. Mutual Fire Ins. Co., 101 Wis. 586 215 Sinking-Fund Cases, 99 U. S. 700 284,293,342 Sirius, The, 47 Fed. 825 421 Slater v. Mexican National R. Co., 194 U. S. 120 418 Slaughter-House Cases, 16 Wall, 36 303,408 Page Smart v. United States, 21 F. (2d) 188 346 Smelting Co. v. Kemp, 104 U. S. 636 59,91 Smiley v. Holm, 285 U. S. 355 379,382 Smith v. Condry, 1 How. 28 418 Smith v. Hitchcock, 34 App. D. C. 521 59 Smith v. Hitchcock, 226 U. S. 53 91 Smith v. Illinois Bell Tel. Co., 282 U. S. 133 125 Sneland I, The, 19 F. (2d) 528 422 Societe du Gaz de Paris v. Armateurs Français, (1926) Sess. Cas. (H. L.) 13 423 Society for Savings v. Coite, 6 Wall. 594 489 Sonderberg, The, 47 F. (2d) 723 421 Sonneborn Bros. v. Cureton, 262 U. S. 506 152,407 Soper v. Hammond Lumber Co., 4 F. (2d) 872 81 Sorenson & Co. v. Liverpool, B. & R. P. S. N. Co., 47 F. (2d) 332 79 South Carolina v. United States, 199 U. S. 437 400 Southern Pacific Co. v. Industrial Commission, 251 U. S. 259 239 Southern Pacific Co. v. Jensen, 244 U. S. 205 39,41,514 Southern Ry. Co. v. Prescott, 240 U. S. 632 131 Southgate v. Eastern Transp. Co., 21 F. (2d) 47 203 Spiller v. Atchison, T. & S. F. Ry. Co., 253 U. S. 117 48 Spring Valley Water Works v. Schottler, 110 U. S. 347 293 Stafford v. Union Bank, 16 How. 135 406 Stafford v. Wallace, 258 U. S. 495 71,153 Stairs v. Peaslee, 18 How. 521 6 TABLE OF CASES CITED. xci Page Standard Marine Ins. Co. v. Scottish Assur. Co., 283 U. S. 284 214 Standard Oil Co. v. Graves, 249 U. S. 389 407 Standard Oil Co. v. Lincoln, 275 U. S. 504 305 State v. Edwards, 86 Me. 102 274 State v. Packer Corp., 297 Pac. 1013 108 State v. Salt Lake Pub. Co., 68 Utah 187 109 State ex rel. Peach Co. v. Bonding Co., 279 Mo. 535 189 State Industrial Corp. v. Nordenholt Corp., 259 U. S. 263 81 State National Bank v. Say-ward, 91 Fed. 443 478 State Tax Commission v. Robinson’s Executor, 234 Ky. 415 325 State Tax Commissioners v. Jackson, 283 U. S. 527 349 State Tax on Railway Gross Receipts, 15 Wall. 284 408 Steamer Syracuse, The, 12 Wah. 167 201 Steamer Webb, The, 14 Wall. 406 200 Steamship Co. v. Joliffe, 2 Wall. 450 442,450,477 Stearns v. Minnesota, 179 U S 223 441 Stebbins v. Riley, 268 U. S. 137 341,349 Stephens v. United States, 261 Fed. 590 432 Stevenson v. Fain, 195 U. S. 165 86 Stewart v. Ramsay, 242 U.S. 128 . 225 Stockwell v. United States, 13 Wall. 531 479 Strickley v. Highland Boy Mining Co., 200 U. S. 527 275 Stromberg v. California, 283 U. S. 359 280 Stuart v. Bank of Montreal, 41 Sup. Ct. Can. 516 410 Sultan Ry. & Timber Co. v. Labor Dept, 277 U. S. 135 40 Page Sun, The, 271 Fed. 953 79 Superior Oil Co. v. Mississippi, 280 U. S. 390 152 Sutherland v. Payne, 274 Fed. 360 119 Swan, In re, 150 U. S. 637 220 Swearingen v. United States, 161 U. S. 446 425 Sweet v. Rechel, 159 U. S. 380 105 Sweeting v The Western States, 210 U. S. 433 52 Taft v. Bowers, 278 U. S. 470 338,340,351 Tagg Bros. & Moorhead v. United States, 280 U. S. 420 46, 47,48,50, 51,60, 70,71,75,80 Tanner v. Little, 240 U. S. 369 108,285 Taylor v. Blackwell Lumber Co., 37 Idaho 707 70 Taylor v. Carryl, 20 How. 583 420 Tebbets v. Mercantile Credit Co., 73 Fed. 95 189 Tempel v. United States, 248 U. S. 121 104 Terral v. Burke Construction Co, 257 U. S. 529 407 Terrell v. Allison, 21 Wall. 289 219 Texas v. Eastern Texas R. Co, 258 U. S. 204 390 Texas v. White, 7 Wall. 700 400,407 Texas Co. v. Brown, 258 U. S. 466 407 Texas & Gulf S. S. Co. v. Parker, 263 Fed. 864 511 Texas & Pacific Ry. Co. v. Callender, 183 U. S. 632 134 Texas & Pacific Ry. Co. v. Clayton, 173 U. S. 348 134 Texas & Pacific Ry. Co. v. Leatherwood, 250 U. S. 478 135 Texas & Pacific Ry. Co. v. Reiss, 183 U. S. 621 134 Texas & Pacific Ry. Co. v. Volk, 151 U, S. 73 118 XCII TABLE OF CASES CITED. Page Texas Transp. & T. Co. v. New Orleans, 264 U. S. 150 408 Thaddeus Davids Co. v. Davids Mfg. Co., 233 U. S. 461 260 Thomas v. Matthiessen, 232 U. S. 221 475 Thomas Jefferson, The, 10 Wheat. 428 407 Thomassen v. Whitwell, Fed. Cas. No. 13,928 421 Thompson v. The Catharina Fed. Cas. No. 13,949 ’ 421 Threshermen’s Nat. Ins. Co. v. Industrial Comm., 201 Wis. 303 84 Tiedt v. Carstensen, 61 Iowa 334 76 Tilghman v. Proctor, 125 U. S. 136 51 Tilton v. Cofield, 93 U. S. 163 219 Tindall, Ex parte, 102 Okla. 192 299 Tips v. Bass, 21 F. (2d) 460 346 Todd v. United States, 48 F. (2d) 530 463 Todd Dry Docks v. Marshall, 49 F. (2d) 621 69 Toledo Newspaper Co. v. United States, 247 U. S. 402 220 'Toledo Scale Co. v. Computing Scale Co., 261 U. S. 399 178 Tomlinson v. Jessup, 15 Wall. 454 442 Topsy, The, 44 Fed. 631 421 Trade-Mark Cases, 100 U. S. 82 76,256, 284 Transit Commission v. United States, 284 U. S. 360 390 Transportation Line v. Hope, 95 U. S; 297 200 Travelers Ins. Co. v. Locke, 56 F. (2d)' 443 68 Treat v. White, 181 U. S. 264 338 Troop, The, 118 Fed. 769 422 Truax v. Raich, 239 U. S. 33 111 Tucker v. Ferguson, 22 Wall. 527 402 Tumey v, Ohio, 273 U .8.510 280 Page Turner v. Bank, 4 Dall. 8 86 Tyler v. United States, 281 U. S. 497 323, 326,337,339,340,351 Tyson & Bro. v. Banton, 273 U. S. 418 277,408 Ucayali, The, 164 Fed. 897 421 Union Tank Line Co. v. Wright, 249 U. S. 275 407 United Drug Co. v. Rectanus Co., 248 U. S. 90 256,258 United States v. Abilene & Sou. Ry. Co., 265 U. S. 274 48 United States v. American Tobacco Co., 166 U. S. 468 214 United States v. Babcock, 250 U. S. 328 51 United States v. Barber, 157 Fed. 889 433 United States v. Chamberlin, 219 U. S. 250 477,479 United States v. Chase, 135 U. S. 255 208 United States v. Cress, 243 U. S. 316 104 United States v. Dickson, 15 Pet. 141 16 United States v. Fox, 95 U. S. 670 76 United States v. Great Falls Mfg. Co., 112 U. S. 645 104 United States v. Healey, 160 U. S. 136 16 United States v. Heinszen & Co., 206 U. S. 370 256 United States v. Hirsch, 100 U. S. 33 522 United States v. Holt State Bank, 270 U. S. 49 55 United States v. Hudson & Goodwin, 7 Cranch 32 86 United States v. Jackson, 280 U. S. 183 16 United States v. Ju Toy, 198 U. S. 253 51 United States v. Kirschenblatt, 16 F. (2d) 202 464 United States v. Loan & Bldg. Co., 278 U. S. 55 190 United States v. Louisville & N, R. Co., 235 U. S. 314 70 TABLE OF CASES CITED. xeni Page United States v. Louisville & N. R. Co., 236 U. S. 318 6 United States v. Lynah, 188 U. S. 445 104 United States v. McElvain, 272 U. S. 633 522 United States v. Missouri Pac. R. Co., 278 U. S. 269 16 United States v. Mosley, 238 U.S. 383 . 367 United States v. Nice, 241 U. S. 591 407 United States v. Noveck, 271 U. S. 201 521,522 United States v. Peters, 166 Fed. 613 208 United States v. Phellis, 257 U. S. 156 188 United States v. Phelps, 107 U. S. 320 406 United States v. Rabinowich, 238 U. S. 78 522 United States v. Railroad Co., 17 Wall. 322 327 United States v. Reese, 92 U. S. 214 • ■ 77 United States v. Reid, 12 How. 361 406 United States v. Rodgers, 150 U. S. 249 419 United States v. Sanges, 144 U. S. 310 220 United States v. Tennessee & C. R. Co., 176 U. S. 242 222 United States v. The Recorder, 1 Blatchf. 218 6 United States v. Union Pac. R. Co., 249 U. S. 354 243 United States v. Utah, 283 U. S. 64 55 United States v. Wells, 283 U. S. 102 323, 327,328,330,342, 343,345 U. S. ex rel. Claussen v. Curran, 276 U. S. 590 529 U. S. Navigation Co. v. Cunard S. S. Co., 284 U. S'. 474 71,78 U. S. Printing & Litho. Co. v. Griggs, C. & Co., 279 U. S. 156 258 Page Untermyer v. Anderson, 276 U. S. 440 338 Uphoff v. Industrial Board, 271 Iff. 312 76 Utah v. United States, 284 U. S. 534 219 Van Allen v. Assessors, 3 Wall. 573 489 Vaughn v. Boyd, 142 Ga. 230 \ 226 Vaughn v. Riordan, 280 Fed. 742 345 Veazie Bank v. Fenno, 8 Wall. 533 402 Vick Medicine Co. v. Vick Chemical Co., 11 F. (2d) 33 ■ 260 Vicksburg, S. & P. R. Co. v. Dennis, 116 U. S..665 491 Vidal v. Girard’s Executors, 2 How. 127 406 Virginia, The, 264 Fed. 986, aff’d 278 Fed. 877 511 Virginian Ry. Co. v: United States, 272 U. S. 658 47,51 Wabash R. Co. v. Flannigan, 192 U. S. 29 526,527 Wabash R. Co. v. Hayes, 234 U. S. 86 239 Wabash, St. L. & P. Ry. Co. v. Illinois, 118 U. S. 557. 293,408 Wadley Southern Ry. Co. v. Georgia, 235 U. S. 651 78 Wagner v. Covington, 251 U. S. 95 493 Wait v. Krewson, 59 N. J. L. 71 76 Walla Walla v. Walla Walla Water Co., 172 U. S. 1 518 Walls v. Midland Carbon Co., 254 U. S. 300 304 Walter D. Wallet, The, 66 Fed. 1011 421 Wampler v. LeCompte, 282 U. S. 172 529 Warburton v. White, 176 U. S. 484 445 Ward & Gow v. Krinsky, 259 U. S. 503 42,82 Waring v. Clarke, 5 How. 441 39,45 XCIV TABLE OF CASES CITED. Page Warren v. Morse Drydock Co., 235 N. Y. 445 514 Warren County v. Marcy, 97 U. S. 96 219 Washburn Crosby Co. v. Boston & A. R. Co., 180 Mass. 252 134 Washington v. Dawson, 264 U.S. 219 39,41,55,513,514 Washington v. Miller, 235 U. S. 422 517 Washington v. Roberge, 278 U. S. 116 280 Washington University v. Rouse, 8 Wall. 439 409 Waterman Co. v. Modern Pen Co., 235 U. S. 88 260 Watson v. State Comptroller, 254 U. S. 122 339 Watts, Watts & Co. v. Unione de Navigazione, 248 U. S. 9 418 Wavelet, The, 25 Fed. 733 79 Wayman v. Southard, 10 Wheat. 1 6 Weeks v. United States, 232 U. S. 383 464,466 Weems v. United States, 217 U. S. 349 222 Weiberg v. The Brig St. Oloff, Fed. Cas. No. 17,357 421 Weidhom v. Levy, 253 U. S. 268 164 Weiss v. Stearn, 265 U. S. 242 188 Welch v. Swasey, 214 U. S. 91 348 Wells v. Steam Navigation Co., 2 Comstock 204 201 Wells, Fargo & Co. v. Nevada, 248 U. S. 165 152 Welton v. Missouri, 91 U. S. 275 152,493 Westchester Fire Ins. Co. v. Fitzpatrick, 2 F. (2d) 651 119 Western Fuel Co. v. Garcia, 257 U. S. 233 40,513 Western Pacific Calif. R. Co. v. Southern Pacific Co., 284 U. S. 47 390 Western States, The, 159 Fed. 354 52 Page Western Transit Co. v. Davidson S. S. Co., 212 Fed. 696 52 Western Union v. Kansas, 216 U. S. 1 237,238 Weston v. Charleston, 2 Pet. 449 402 Westphal v. Westphal’s Corp., 216 App. Div. 53; id., 243 N. Y. 639 260 W. H. Baldwin, The, 271 Fed. 411 203 Wheeler v. Sohmer, 233 U. S. 434 407 Wheeler v. Sweet, 137 N. Y. 435 216 Wheeling Corrugating Co. v. McManigal, 41 F. (2d) 593 68 White v. Macomber Co., 244 Mass. 195 84 White v. Maddison, 45 F. (2d) 335 230 Whitman v. Oxford Nat. Bank, 176 U. S. 559 475, 477,479 Whitney v. California, 274 U. S. 357 529 W. H. Simpson, The, 80 Fed. 153 203 Wilfley v. Helmich, 56 F. (2d) 845 345 Willcox v. Edwards, 162 Cal. 455 445,447,451 Willcuts v. Bunn, 282 U. S. 216 400,411 Willendson v. The Forsoket, Fed. Cas. No. 17,682 421 Wm. A. Rogers v. International Silver Co., 30 App. D. C. 97 261 Wm. A. Rogers v. International Silver Co. (1), 34 App. D. C. 410 261 Wm. A. Rogers v. International Silver Co. (2), 34 App. D. C. 413 261 Wm. A. Rogers v. International Silver Co. (3), 34 App. D. C. 484 261 TABLE OF CASES CITED. xcv Page Wm. A. Rogers v. Rogers Silverware Redemption Bureau, 247 Fed. 178 261 Wm. Rogers Mfg. Co. v. Rogers, 84 Fed. 639 260 Wm. Rogers Mfg. Co. v. Rogers, 95 Fed. 1007 260 Wm. Rogers Mfg. Co. v. Rogers Mfg. Co., 16 Phila. Rep. 178 261 Wm. Rogers Mfg. Co. v. Rogers & Spurr Mfg. Co., 11 Fed. 495 260 Wm. Rogers Mfg. Co. v. R. W. Rogers Co., 66 Fed. 56 260 Williams v. Parker, 188 U. S. 491 105 Williams v. Standard Oil Co., 278 U. S. 235 237 Williams v. Walsh, 222 U. S. 415 110 Williamson v. American Bank, 115 Fed. 793 478 Wilson v. Daniel, 3 Dall. 401 406 Wilson v. Hite’s Executor, 154 Ky. 61 216 Wilson v. Sibley, 36 Fed. 379 203 Wilson & Co. v. Locke, 50 F. (2d) 81 68 137818°—32-----vu Page Winchester v. Howard, 136 Cal. 432 446,449 Wisinger v. White Oil Corp., •24 F. (2d) 101 84 Wisner, Ex parte, 203 U. S. 449 406 Wolff Co. v. Industrial Court, 262 U. S. 522; s. c, 267 U. S. 552 277,280,293 Woolfolk v. Bank, 73 Ky. 504 215 Workman v. New York, 179 U. S. 552 513 Yarbrough, Ex parte, 110 U. S. 651 367 Yazoo & M. V. R. Co. v. Thomas, 132 U. S. 174 491 York Junction Trans. & S. Co. v. Accident Comm’rs, 202 Cal. 517 69 Young v. American Bonding Co, 228 Pa. 373 189 Yu Cong Eng v. Trinidad, 271 U. S. 500 261 Zahn v. Board of Public Works, 274 U. S. 325 342 Zurich Accident & L. Co. v. Marshall, 56 F. (2d) 652 69 Zurich Ins. Co. v. Marshall, , 42 F. (2d) 1010 69 TABLE OF STATUTES Cited in Opinions (A) Statutes of the United States Page 1789, Sept. 24, c. 20, § 9, 1 Stat. 76.................. 52,513 1845, Feb. 26, c. 20, 5 Stat. 726 .................... 52 1851, Mar. 3, c. 38, 9 Stat. 629 ...................... 6 1851, Mar. 3, c. 43, 9 Stat. 635............... 39, 506 1866, July 25, c. 242, 14 Stat. 239 ................... 243 1866, July 27, c. 278, § 11, 14 Stat. 292............ 242 1875, Mar. 3, c. 137, 18 Stat. 470.................... 86 1886, June 4, c. 421, § 4, 24 Stat. 80............... 506 1897, July 24, c. 11, 30 Stat. 151...................... 6 1898, July 1, c. 541, 30 Stat. 544 ................... 206 1901, Mar. 2, c. 803, 31 Stat. 910.................... 256 1905, Feb. 20, c. 592, § 29, 33 Stat. 724....... 257,260 1906, June 16, c. 3335, 34 §£at. 267.............. 398 1907, Mar. 2, c. 2564, 34 Stat. 1246............. 425 1908, Apr. 22, c. 149, 35 Stat. 65 ............. 39,143,237 1909, Mar. 4, c. 321, 35 Stat. 1088................... 426 1909, Aug. 5, c. 6, 36 Stat. 11................... 10,11 Page 1909, Aug. 5, c. 8, § 26, 36 Stat. 130.............. 257 1910, June 18, c. 309, §§ 1, 13, 36 Stat. 539.... 70,71 1911, Aug. 8, c. 5, 37 Stat. 13......................379 1911, Aug. 8, c. 5, §§ 3, 4, 5, 37 Stat. 13........ 362,373 1913, Mar. 1, c. 92, 37 Stat. 701..................... 70 1913, Oct. 3, c.16, Par.G(b), 38 Stat. 114............ 11 1913, Oct. 22, c. 32, 38 Stat. 208 ............... 389,390 1914, Sept. 26, c. 311, § 5, 38 Stat. 717............... 70 1914, Oct. 15, c. 323, § 11, 38 Stat. 730............... 70 1915, Mar. 4, c. 153, 38 Stat. 1164.................... 39 1915, Mar. 4, c. 153, § 20, 38 Stat. 1164.............. 87 1916, Aug. 29, c. 416, 39 Stat. 545 ................... 258 1916, Sept. 7, c. 451, §§ 29, 31, 39 Stat. 728........ 70 1916, Sept. 7, c. 451, § 30, 39 Stat. 728............... 71 1916, Sept. 7, c. 458, § 28, 39 Stat. 748 .............. 42 1916, Sept. 8, c. 463, 39 Stat. 756 ................... 166 1916, Sept. 8, c.463, §§ 5 (a), 6 (a), 12 (a), 39 Stat. 756..................... 11 XCVH XCVIII TABLE OF STATUTES CITED. Page 1916, Sept. 8, c. 463, § 202 (b), 39 Stat. 756. 333,343 1916, Sept. 8, c. 463, § 202 (c), 39 Stat. 756..... 333 1916, Sept. 8, c. 463, § 202 (B) (b), 39 Stat. 756. 343 1916, Sept. 8, c. 463, § 203, 39 Stat. 756............. 166,167 1916, Sept. 8, c. 463, Title II, 39 Stat. 756.......... 333 1917, Feb. 5, c. 29, 39 Stat. 874 .................... 7 1917, Feb. 5, c. 29, § 19, 39 Stat. 874 ............. 90 1917, Oct. 3, c. 63, 40 Stat. 300 .................. 142 1917, Oct. 3, c. 63, §§ 1201 (1), 1207 (1), 40 Stat. 300 ................... 11 1919, Feb. 24, c. 18, §§ 214 (a), 222, 234 (a), 238, 40 Stat. 1057........... 14 1919, Feb. 24, c. 18, § 214 (a) (3), 40 Stat. 1057. 13 1919, Feb. 24, c. 18, § 216 (e), 40 Stat. 1057.... 18 1919, Feb. 24, c. 18, § 218 (a), 40 Stat. 1057.... 138 1919, Feb. 24, c. 18, §§ 222 (a), 238 (a), 40 Stat. 1057................ 12,15 1919, Feb. 24, c. 18, § 222 (a) (3), 40 Stat. 1057. 19 1919, Feb. 24, c. 18, § 224, 40 Stat. 1057......... 140 1919, Feb. 24, c. 18, § 230, 40 Stat. 1057.......... 187 1919, Feb. 24, c. 18, § 402 (c), 40 Stat. 1057. 333,343 1919, Feb. 24, c. 18, § 402 (f), 40 Stat. 1057.... 333 1919, Oct. 22, c. 80, Title II, § 108,41 Stat. 297.... 71 1919, Oct. 28, c. 85, §§ 18, 21, 22, 41 Stat. 305...... 463 1919, Oct. 28, c. 85, §§ 21, 22, 41 Stat. 305.......... 461 1919, Oct. 28, c. 85, Title II, § 3, 41 Stat. 305...... 516 Page 1919, Oct. 28, c. 85, Title II, § 29, 41 Stat. 305.... 517 1920, Feb. 28, c. 91, 41 Stat. 456................... 390 1920, Feb. 28, c. 91, § 1, pars. 18, 19, 20, 41 Stat. 456.................... 386 1920, Feb. 28, c. 91, § 1, par. 20, 41 Stat. 456....... 391 1920, Feb. 28, c. 91, § 402, pars. 18-20, 41 Stat. 456.................... 283 1920, June 5, c. 240, 41 Stat. 948.................... 243 1920, June 5, c. 250, 41 Stat. 988..................... 39 1920, June 5, c. 250, § 33, 41 Stat. 1007........... 87 1920, June 10, c. 285, § 20, 41 Stat. 1063 .......... 70 1921, Aug. 15, c. 64, §§ 204, 315, 316, 42 Stat. 159. 71 1921, Nov. 23, c. 136, § 218 (a), 42 Stat. 227...... 138 1921, Nov. 23, c. 136, § 222 (a), 42 Stat. 227.... 7 1921, Nov. 23, c. 136, § 224, 42 Stat. 227........... 140 1921, Nov. 23, c. 136, § 238 (a), 42 Stat. 227........ 4 1921, Nov. 23, c. 136, § 238 (e), 42 Stat. 227.... 4,9 1921, Nov. 23, c. 136, § 246, 42 Stat. 227............. 184,191 1921, Nov. 23, c. 136, § 246 (a), 42 Stat. 227...... 186 1921, Nov. 23, c. 136, § 402 (c), 42 Stat. 227...... 343 1921, Nov. 23, c. 136, § 1000, 42 Stat. 227........... 191 1921, Nov. 23, c. 136, § 1000, (a), 42 Stat. 227...... 186 1922, Feb. 18, c. 57, § 2, 42 Stat. 388.............. 71 1922, Sept. 21, c. 356, § 401, 42 Stat. 858........... 517 1922, Sept. 21, c. 356, § 593 (b), 42 Stat. 858...... 516 1922, Sept. 21, c. 369, § 6 (b), 42 Stat. 998 ...... 71 TABLE OF STATUTES CITED. XCIX Page 1924, June 2, c. 234, § 207 (a), (b), 43 Stat. 253. 233 ■ 1924, June 2, c. 234, § 218 (a), 43 Stat. 253..... 229 1924, June 2, c. 234, § 246, 43 Stat. 253.............. 184,191 1924, June 2, c. 234, §§ 301 (a), 303 (a) (4), 319, 321 (a) (1), 43 Stat. 953 333 1924, June 2, c. 234,’ § ' 302 (c), 43 Stat. 253 ... 343 1924, June 2, c. 234, §§ 319- 324, 43 Stat. 253... 333 1924, June 2, c. 234, § 322, 43 Stat. 253........... 334 1924, June 2, c. 234, § 700, 43 Stat. 253........... 191 1924, June 2, c. 234, §§ 1200 (a), 1201 (a), (b), 43 Stat. 253................ 230 1925, Feb. 13, c. 229, 43 Stat. 936 .................. 108, 425, 523, 525, 530 1925, Feb. 13, c. 229, § 7, 43 Stat. 936 .......... 253 1925, Feb. 13, c. 229, § 8, 43 Stat. 936........... 177 1926, Feb. 26, c. 27, § 301, 44 Stat. 9......... 322,334 1926, Feb. 26, c. 27, § 302 (c), 44 Stat. 9........ 320, 343,346,355 1926, Feb. 26, c. 27, § 324, 44 Stat. 9..............334 1926, Feb. 26, c. 27, § 1003 (a), 44 Stat. 9.........67,71 1926, Feb. 26, c. 27, § 1003 (b), 44 Stat. 9......... 67 1926, Feb. 26, c. 27, § 1110 (a), 44 Stat. 9........ 520 1926, Feb. 26, c. 27, § 1114 (a), (c), 44 Stat. 9... 521 1926, Feb. 26, c. 27, § 1114 (b), 44 Stat. 9...; 520,521 1926, Feb. 26, c. 27, § 1200 (a), 44 Stat. 9.........330 1926, June 30, c. 712, 44 Stat. 1 (Part I).............373 1927, Mar. 4, c. 509, 44 Stat. 1424................. 36,65 Page 1927, Mar. 4, c. 509, § 3 (a), 44 Stat. 1424 ......... 38 1927, Mar. 4, c. 509, § 19 (a), 44 Stat. 1424.......... 65 1928, Jan. 31, c. 14, 45 Stat. 54 .................. 425 1928, Apr. 26, c. 440, 45 Stat. 466 ................. 425 1928, May 15, c. 569, §§ 3, 4, 102, 45 Stat. 534 ... 99 1928, May 29, c. 852, § 404, 45 Stat. 791.......... 334 1929, Feb. 28, c. 366, 45 Stat. 1349................. 246 1929, June 18, c. 28, 46 Stat. 21........... 361,379,381 1929, June 18, c. 28, § 21, 46 Stat. 21............. 373 1930, June 10, c. 436, §§ 10, 11, 46 Stat. 531....... 71 Constitution. See Index at end of Volume. Criminal Code. § 37 461 § 211 425 § 215 429 Judicial Code. § 24 419,513 § 208 390 § 237 470,487 § 237 (a).. 108,523, 525,530 § 237 (c)..... 523,525,530 § 256 513 § 261 206 § 266 123,151 Revised Statutes. § 566 52 § 1025 ............... 431 § 3893 426 § 4283 ............. 506,510 § 4289 506 § 5219 491 U. S. Code. Title 2, §§ 2-5 ......... 373 . 5, § 778 ......... 442 15, §§ 81 et seq... 257 § 108 257 18, § 338 ......... 429 § 556 ......... 431 19, § 231......... 517 § 497 516 c TABLE OF STATUTES CITED. U. S. Code—Con. Page Title 26 §§ 261, 306, 316, 555, 667, 775, 843, 1180, 1181, 1184 and 1186 ...... 521 27, § 12......... 516 §§ 30, 33, 34... 463 § 46......... 518 28, § 41 (3).... 513 §§ 46, 47 ... 390 U. S. Code—Con. Page Title 28, § 345 .... 389 § 350 ...... 177 § 380 ...... 151 § 770 ....... 52 33, §§ 901-950 .... 36 46, § 183 .... 506,510 § 188 ...... 506 49, § 1........ 390 Supp. V, Title 18, § 585.. 520 Supp. V, Title 26, § 1094 . 320 Supp. V, Title 26, § 1266. 520 (B) Statutes of the States and Territories California. Page Constitution (1879) Art. XII, § 1......440 § 3...... 439 446,449 Art. XIII, § 16.... 488 1929 Stats, c. 13, p. 19.. 488 Civil Code, § 309....... 445 Political Code, § 327.... 451 District of Columbia. 1929 Code, Title 18, § 43. 391 Georgia. Constitution (1789), Art. II, § 10.............. 370 Iowa. Constitution, Art. 8, § 12.................... 472 1873 Code, § 1090 ... 472 § 1572..... 476 1897 Code, § 1619.... 472 § 1857..... 476 §§ 1878,1879, 1880.... 470 § 1882..... 476 1925 Laws, Act of Mar. 13, c. 181........... 471 1927 Code, §§ 9235,9238, 9239,9246-9248, 9251, 9252,9277. 476 §§9246-9250. 470 §9248-a(l). 471 Kentucky. Constitution (1792), Art. I, § 28............... 370 1930 Stats. (Carroll’s) § 3720b-124, 125........ 215 Minnesota. Page Constitution, Art. 4, §§ 1, 11, 23...........363 1858 Laws, c. 83 ..... 364 1872 Laws, c. 21...... 364 1881 Laws, c. 128..... 364 1891 Laws, c. 3........364 1901 Laws, c. 92...... 364 1913 Laws, c. 513......364 1929 Laws, c. 64...... 364 Massachusetts. Constitution (1789).... 369 Resolves, Oct.-Nov., 1788, c. XLIX, p. 52. 369 Resolves, May-June, 1792, c. LXIX, p. 23. 369 1921 Gen. Laws, vol. 1, c. 65, §§ 1, 6, 7, 9, 17. 166, 167,168 Workmen’s Compensation Act, c. 152, § 66, Mass. Gen. Laws......236 Maryland. 1789 Laws, c. 8, § 2.... 306 1799, Herty’s Digest, p. 250................ 306 Mississippi. 1918 Laws, c. 128, § 3.. 176 1927 Code (Hemingway’s), § 2598...... 176 New Hampshire. Constitution ( 17 9 2), Part Second, § XLIV. 370 New York. 1789 Laws, c. 11...... 370 1797 Laws, c. 62...... 370 1802 Laws, c. 72...... 370 TABLE OF STATUTES CITED. ci New York—Continued. Page 1890 Laws, c. 690, Art. V, § 170 (1)....... 184 1904 Laws, c. 543.... 184 1911 Laws, c. 525.... 184 1913 Laws, c. 215.... 184 Insurance Law, Art. V.. 192 Oklahoma. 1908 Laws, June 10, § 13................... 294 1915 Sess. Laws, c. 176, § 3 ............... 283,299 1917 Sess. Laws, c. 270 . 299 1921 Comp. Stats., §§ 9415, 9417, 9423..... 398 1923 Sess. Laws, c. 113, § 4.................. 299 1925 Sess. Laws, c. 102, §§ 5, 6..300 c. 147......... 271,280 Pennsylvania. Constitution (1790), Art. I, § 22.............. 370 Philippine Islands. 1903, Mar. 6, Act. No. 666.............. 252,260 1915, Act No. 2460..... 257 South Carolina. 1791-1794, 1 S. C. Acts nf AsRpmhlv R.Q Rflft South Carolina—Continued. Page 1922 Acts, pp. 835-838.. 151 1929 Acts, pp. 107-112. 151 5 Stats. 186............... 306 Utah. 1890 Laws, c. 65, § 1.. 108 1896 Laws, c. 95, § 1.. 275 1903 Laws, c. 135..... 109 1911 Laws, c. 51 .. 108,109 1913 Laws, c. 59....... 109 1921 Laws, c. 145, § 1.. 108,109 § 2 107,109 §3 109 §4 109 1923 Laws, c. 52, § 1 108,109 § 2 107 §4 109 1925 Laws, c. 68... 108 1929 Laws, c. 92.... 107 1930 Laws, c. 5, § 1.... 108 1930 Laws, c. 5, § 1 (k). 108 Vermont. Constitution (1777), c. II, § XIV..........370 Constitution (1786), c. II, § XVI......... 370 Constitution (1793), c. II, § XVI......... 370 (C) Treaties Page 1903, Dec. 17, 33 Stat. 2136 (Commercial Convention with Cuba)........... 6 (D) Foreign Statutes England. Page 44 Viet., c. 12, § 38 (2) (a).................... 334 52 Viet., c. 7, § 11 (1).. 335 England—Continued. Page 10 Edw. VII, c. 8, § 59 (1)................335 CASES ADJUDGED IN THE SUPREME COURT OF THE UNITED STATES AT OCTOBER TERM, 1931. BURNET, COMMISSIONER OF INTERNAL REVENUE, v. CHICAGO PORTRAIT CO. CERTIORARI TO THE CIRCUIT COURT OF APPEALS FOR THE SEVENTH CIRCUIT. No. 378. Argued January 20, 21, 1932.—Decided February 23, 1932. 1. The term “ foreign country,” when used with reference to government rather than to territory, may mean a foreign State in the international sense, or it may mean a foreign government having authority over a particular area or subject-matter, which is not itself an international person but only a component or political subdivision of a larger international unit. P. 5. 2. The term “ foreign country ” is not a technical or artificial one; and the sense in which it is used in a statute must be determined by reference to the purpose of the particular legislation. Id. 3. The Revenue Act of 1921, § 238 (a) and (e), provides (with limitations) that domestic corporations may credit against their income taxes like taxes paid during the same taxable year “ to any foreign country,” and that where such a corporation owns a majority of the voting stock of a foreign corporation from which it receives dividends in any taxable year, it shall be presumed to have paid the same proportion of any income tax paid by such foreign corporation “ to any foreign country ” upon the accumulated profits from which such dividends were paid, as the amount of such dividends bears to the amount of such accumulated profits. Held, construing it in connection with earlier legislation: (1) That the purpose is to mitigate the evil of double taxation and to facilitate the foreign enterprises of domestic corporations, and 137818°—-32----1 1 2 OCTOBER TERM, 1931. Argument for Petitioner. 285 U.S. (2) That the term “ foreign country ” is not limited to international States, but embraces any foreign government competent to lay the tax sought to be credited. Pp. 5-15. 4. Administrative construction of a statute, if not uniform and consistent, will be taken into account by courts only to the extent that it is supported by valid reasons. P. 16. 5. Ambiguous regulations are of little value in solving statutory ambiguities. Id. 50 F. (2d) 683, affirmed. Certiorari, 284 U. S. 607, to review a judgment of the Circuit Court of Appeals affirming a determination of the Board of Tax Appeals, 16 B. T. A. 1129. Assistant Attorney General Youngquist, with whom Solicitor General Thacher, and Messrs. Whitney North Seymour, Sewall Key, and Andrew D. Sharpe were on the brief, for petitioner. Only taxes paid to a foreign sovereign state or a self-governing colony are deductible under § 238 of the Revenue Act of 1921. The administrative construction of the phrase “ foreign country ” is supported by several decisions and is consistent with its meaning when used in other federal statutes and in international law. Stairs v. Peaslee, 18 How. 521; Faber v. United States, 221 U. S. 649, 658; United States v. The Ship Recorder, 1 Blatch. 218; U. S. C., Title 22, §§ 38, 177, 216; U. S. C. App., Title 22, § 291. The term “ country ” is used in the same sense to define a state or person in international law. Hyde, Int. L., I, pp. 16-17; Moore, Int. L. Dig., I, pp. 14-18, and authorities cited; Hall, Int. L., pp. 17 et seq.; Wheaton, Int. L., 6th ed., I, pp. 38 et seq. Relief from international double taxation has been the subject of international negotiation, and the nature and scope of those negotiations indicate that the nations generally have been concerned only with relieving their nationals from double taxation by sovereign states and not from that of political subdivisions. BURNET v. CHICAGO PORTRAIT CO. 3 1 Argument for Respondent. The right to credit taxes paid to a foreign country is in the nature of an exemption. If there were any doubt about the intention of Congress, it should be resolved in favor of the Government. Cornell v. Coyne, 192 U. S. 418, 431; Swan & Finch Co. v. United States, 190 U. S. 143, 147; Bank of Commerce v. Tennessee, 161 U. S. 134, 146. There is no provision in the revenue acts which permits the crediting of taxes imposed by a State of the United States against income and profits taxes imposed by the United States. State taxes are deducted from gross income in computing net income, under § 234 (a) (3) of the Revenue Act of 1921. It is not to be presumed that Congress intended to allow credits to corporations for taxes paid to states or other subdivisions of foreign countries while withholding similar credits for taxes paid to States of the United States. New South Wales is not a “ foreign country ” within the meaning of the Revenue Act of 1921. . Mr. Arnold R. Baar, with whom Mr. Albert L. Hopkins was on the brief, for respondent. The word “ country ” in the phrase “ any foreign country” means any foreign tax-levying authority. Dicey’s Conflict of Laws, 4th ed., pp. 59, 60; Campbell v. Barney, 4 Fed. Cas. 1157; Mensevich v. Tod, 264 U. S. 134; Seif v. Nagle, 14 F. (2d) 416; United States v. Smith, 2 F. (2d) 90; In re Farez, 8 Fed. Cas. 1011; Pagano v. Cerri, 93 Oh. St. 345; In re Ghio’s Estate, 157 Cal. 552; Mansell’s Admnx. v. Israel, 6 Ky. 510; Mendrie Mfg. Co. v. Pendrick, 21 Hawaii 258. The Government’s interpretation of the term “ foreign country ” is based on a misapplication of some of the older tariff decisions, but the fact is that there is no uniform definition of the term even in the particular field of tariff legislation. Pearcy v. Stranahan, 205 U. S. 257, 269; Stairs v. Peaslee, 18 How. 521; Faber v. United States, 221 U. S. 649; United States v. The Ship Recorder, 1 Blatch. 218. 4 OCTOBER TERM, 1931. Opinion of the Court. 285U.S. Mr. Chief Justice Hughes delivered the opinion of the Court. This proceeding was brought for the redeterminatidn of a deficiency in income tax for the year 1923. The respondent, Chicago Portrait Company, is an Illinois corporation with its principal place of business at Chicago. It owned 51 per cent, of the capital stock of the International Art Company of Sydney, Australia, a foreign corporation. Respondent received dividends from the International Art Company and sought credit for a proportionate part of the income taxes paid by that corporation to the Commonwealth of Australia, to the State of New South Wales, and to the Dominion of New Zealand. Section 238 (e) of the Revenue Act of 1921 (42 Stat. 227, 258, 259) permitted credit in the case of such taxes paid “ to any foreign country.” Credit was allowed on account of the income taxes paid to the Commonwealth of Australia and to the Dominion of New Zealand but was refused as to those paid to the State of New South Wales. The Board of Tax Appeals held that the respondent was entitled to the credit with respect to the last mentioned taxes also, and the Circuit Court of Appeals affirmed that decision. 16 B. T. A. 1129; 50 F. (2d) 683. This Court granted a writ of certiorari. The sole question is whether New South Wales is a “ foreign country ” within the meaning of the applicable statute.1 1 The provisions of § 238 (a) and (e) of the Revenue Act of 1921 are as follows: “ Sec. 238 (a) That in the case of a domestic corporation the tax imposed by this title, plus the war-profits and excess-profits taxes, if any, shall be credited with the amount of any income, war-profits, and excess-profits taxes paid during the same taxable year to any foreign country, or to any possession of the United States: Provided, That the amount of credit taken under this subdivision shall in no case exceed the same proportion of the taxes, against which such credit is taken, which the taxpayer’s net income (computed without deduction BURNET v. CHICAGO PORTRAIT CO. 5 1 Opinion of the Court. The word “ country,” in the expression “ foreign country,” is ambiguous. It may be taken to mean foreign territory or a foreign government. In the sense of territory, it may embrace all the territory subject to a foreign sovereign power. When referring more particularly to a foreign government, it may describe a foreign State in the international sense, that is, one that has the status of an international person with the rights and responsibilities under international law of a member of the family of nations;2 or it may mean a foreign government which has authority over a particular area or subjectmatter, although not an international person but only a component part, or a political subdivision, of the larger for any income, war-profits, and excess-profits taxes imposed by any foreign country or possession of the United States) from sources without the United States bears to its entire net income (computed without such deduction) for the same taxable year. . . . "(e) For the purposes of this section a domestic corporation which owns a majority of the voting stock of a foreign corporation from which it receives dividends (not deductible under section 234) in any taxable year shall be deemed to have paid the same proportion of any income, war-profits, or excess-profits taxes paid by such foreign corporation to any foreign country or to any possession of the United States, upon or with respect to the accumulated profits of such foreign corporation from which such dividends were paid, which the amount of such dividends bears to the amount of such accumulated profits: Provided, That the credit allowed to any domestic corporation under this subdivision shall in no case exceed the same proportion of the taxes against which it is credited, which the amount of such dividends bears to the amount of the entire net income of the domestic corporation in which such dividends are included. The term ‘ accumulated profits ’ when used in this subdivision in reference to a foreign corporation, means the amount of its gains, profits, or income in excess of the income, war-profits, and excess-profits taxes imposed upon or with respect to such profits or income; . . .” 2 Oppenheim, Intemat. L., 4th ed., vol. I, §§ 63, 64, pp. 133-135; Hyde, Internat. L., vol. 1, §§ 6-8, pp. 15-18; Moore, Internat. L. Dig., vol. I, pp. 14-18. 6 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. international unit.3 The term “ foreign country ” is not a technical or artificial one, and the sense in which it is used in a statute must be determined by reference to the purpose of the particular legislation.4 * In the case of tariff acts, this Court said in Stairs v. Peaslee, 18 How. 521, 526, that the word “ country ” has always been construed “ to embrace all the possessions of a foreign State, however widely separated, which are subject to the same supreme executive and legislative control.” See, also, United States v. The Ship Recorder, 1 Blatchf. 218, 225-227; Campbell v. Barney, 5 Blatchf. 221. Accordingly, in construing the Act of March 3, 1851 (9 Stat. 629, 630) providing that imported merchandise should be appraised at its market value “ at the principal markets of the country ” from which it had been imported, the Court held that a commodity shipped from Halifax, Nova Scotia, should be appraised according to the value in the principal markets under the British rule, and these were found, in fact, to be London and Liverpool. After the ratification of the Treaty of Peace between the United States and Spain, Porto Rico and the Philippines ceased to be “ foreign country ” under the tariff laws. De Lima v. Bidwell, 182 U. S. 1; Fourteen Diamond Rings v. United States, 183 U. S. 176, 179. It followed that the term “ other countries ” in the Commercial Convention with Cuba of 1903 (33 Stat. 2136, 2140) did not include the Philippine Islands. Faber n. United States, 221 U. S. 649, 658. Under the provisions of the Platt Amendment and the Constitution of Cuba, the Isle of Pines was de facto under the jurisdiction of Cuba and hence remained “ foreign country” within the meaning of the Tariff Act of 1897 (30 Stat. 151). Pearcy v. Stranahan, 205 U. S. 257, 265. 3 See Dicey, Conflict of Laws, 4th ed., pp. 59, 60. 4 Wayman v. Southard, 10 Wheat. 1, 29; Marriott v. Brune, 9 How. 619, 635, 636; American Tobacco Co. v. Werckmeister, 207 U. S. 284, 293; United States v. Louisville & N. R. Co., 236 U. S. 318, 333; Inter-Island Steam Nav. Co. n. Ward, 242 U. S. 1, 4; Porto Rico Ry., L. & P. Co. v. Mor, 253 U. S. 345, 348. BURNET v. CHICAGO PORTRAIT CO. 7 1 Opinion of the Court. In construing legislation providing for the deportation of aliens “ to the country whence they came,” the place of emigration affords the dominant consideration. Thus, under the Immigration Act of 1917 (39 Stat. 874, 890) the Court held that an alien emigrating from Grodno, then a part of Russia, was properly deported to Poland, because at that time Grodno was a part of Poland. “ The term country,” said the Court, was used in the statute “ to designate, in general terms, the state which, at the time of deportation, includes the place from which the alien came.” Mensevich v. Tod, 264 U. S. 134, 136, 137. The evident purpose of the statute determined the significance to be attached to the expression. In the instant case, the question is one of credit for income taxes “ paid to any foreign country.” The word " country ” is manifestly used in the sense of government. And to decide what government fits the description, whether only that of a foreign power which may be considered an international person, or that of a political entity which, although not an international person, levies and collects income taxes which may be the subject of the intended credit, it is’ necessary to consider the object of the enactment and to construe the expression “ foreign country ” so as to achieve, and not defeat, its aim. We think that the purpose of the statute is clear. The fact that the provision is for a credit to the domestic corporation, against income taxes payable here, of income taxes “ paid during the same taxable year to any foreign country,” itself demonstrates that the primary design of the provision was to mitigate the evil of double taxation. Cognate provisions in the case of individuals disclose a similar intent. Section 222 (a)5 of the same Revenue 6 6 “ Sec. 222. (a) That the tax computed under Part II of this title shall be credited with: “(1) In the case of a citizen of the United States, the amount of any income, war-profits and excess-profits taxes paid during the 8 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. Act (1921) provides that the income tax, in the case of a citizen of the United States, should be credited with the amount of any income taxes “ paid during the taxable year to any foreign country or to any possession of the United States.” In the case of an alien resident of the United States, the credit is conditioned upon reciprocal treatment. The resident alien is to be credited with “ the amount of any such taxes paid during the taxable year to any foreign country, if the foreign country of which such alien resident is a citizen or subject, in imposing such taxes, allows a similar credit to citizens of the United States residing in such country.” 42 Stat. 249.6 * 6 taxable year to any foreign country or to any possession of the United States; and “(2) In the case of a resident of the United States, the amount of any such taxes paid during the taxable year to any possession of the United States; and “(3) In the case of an alien resident of the United States, the amount of any such taxes paid during the taxable year to any foreign country, if the foreign country of which such alien resident is a citizen or subject, in imposing such taxes, allows a similar credit to citizens of the United States residing in such country; . . .” 6 With respect to the allowance of such credits, as distinguished from deductions from gross income in computing net income, the Committee on Ways and Means of the House of Representatives in its report on the Revenue Bill of 1918 (H. R. Rep. No. 767, 65th Cong., 2d sess., p. 11), said: “Under existing law a citizen of the United States can only deduct income, war or excess profits taxes paid to a foreign country from gross income in computing net income. With the corresponding high rates imposed by certain foreign countries the taxes levied in such countries in addition to the taxes levied in the United States upon citizens of the United States place a very severe burden upon such citizens. The bill provides that a credit against the income tax imposed in the United States be allowed a citizen of the United States subject to income and war or excess profits taxes in a foreign country of an amount equal to the tax paid in such country upon income that is received from sources within such country. The bill further provides that, in the case of an alien resident of the United States who is a citizen or subject of a country which imposes income, war profits, or excess profits taxes, a like BURNET v. CHICAGO PORTRAIT CO. 9 1 Opinion of the Court. In the case of domestic corporations, the purpose is also disclosed to facilitate their foreign enterprises. The provision of § 238 (e) of the Revenue Act of 1921 indicates appreciation of the practical exigencies which lead to the foreign incorporation of subsidiaries for the extension by domestic corporations of their business abroad. This clearly appears to be the reason for the allowance by that Act of a credit to a domestic corporation, against its income tax here upon dividends received from its foreign subsidiary, of a proportionate part, as defined, of the income taxes paid by that subsidiary to “ any foreign country.” 7 The same provision applies to subsidiaries with credit shall be allowed if such country allows a similar credit to citizens of the United States resident in such country,” The Conference Report on the Revenue Bill of 1918 (H. R. Rep. No. 1037, 65th Cong., 3d sess., p. 53), contains the following statement: “Amendment No. 118: The House bill provided that a citizen of the United States might credit against his income tax the amount of any income, war-profits, and excess-profits taxes paid to any foreign country, Porto Rico, or the Philippine Islands, upon income derived from sources therein, and allowed a similar credit to an alien resident if his country makes reciprocal provisions. The Senate amendment entirely rewrites the section and broadens it to include a credit for taxes paid to any possession of the United States, which is also to be given to an alien resident of the United States. The House recedes with an amendment providing that if any deduction is allowed for taxes accrued in any possession or foreign country, the commissioner may require the taxpayer to give a surety bond providing for the payment of any tax found to be due the Government in case too great a deduction shall be allowed for accrued taxes in our possessions or any foreign country. . . .” ’ In the Report of the Committee on Ways and Means of the House of Representatives in relation to the Revenue Bill of 1921 (H. R. Rep. No. 350, 67th Cong., 1st sess., p. 8), the following statement was made with respect to American concerns doing business in foreign countries: “ Under existing law an American citizen or domestic corporation is taxed upon his or its entire income even though all of it is derived from business transacted without the United States. This results in double taxation, places American business concerns at a serious disadvantage in the competitive struggle for foreign trade, and 10 OCTOBER TERM, 1931. Opinion of the Court. 285U.S. respect to income taxes paid “ to any possession of the United States.” In effectuating these purposes, it is manifest that the controlling consideration was the fact that the income tax was paid to a foreign government competent to lay the tax, and not the international status of that government. The burden upon the domestic corporation was the same whether the foreign government had international standing or was a lesser political entity which nevertheless had authority to impose the exaction upon the corporation or its subsidiary. And if credit was to be allowed here by reason of the payment of the income tax abroad, it made no difference to the Government of the United States whether the payment abroad was made to the one sort of foreign government or the other. The reasons underlying the allowance of the credit were applicable in either case. An examination of the provisions of earlier income tax acts in which the expression “ foreign country ” is found, does not support, but rather negatives, the conclusion that the term was used in the restricted sense for which the petitioner contends. In the Corporation Tax Act of encourages American corporations doing business in foreign countries to surrender their American charters and incorporate under the laws of foreign countries.” While this statement was made to introduce a remedial proposal, which was not adopted, it discloses the purpose entertained. See, also, Report of Committee of Finance of the Senate (Sen. Rep. No. 275, 67th Cong., 1st sess., p. 9). The Conference Report on the Revenue Bill of 1921 (H. R. Rep. 486, 67th Cong., 1st sess., p. 38), contains the following: “Amendment No. 436 : The House bill provided for the exclusion from income of all dividends received from a corporation. Senate amendments agreed to by the conferees having provided for the inclusion in gross income of certain dividends received from a foreign corporation, Senate amendment No. 436 provides, under proper safeguards, for the credit by a domestic corporation of taxes paid by its subsidiary foreign corporation with respect to the income or profits of the foreign corporation paid as taxable dividends to the domestic corporation; and the House recedes.” BURNET v. CHICAGO PORTRAIT CO. 11 1 Opinion of the Court. 1909 (36 Stat. 113) deduction from gross income was allowed to the corporation for all sums paid by it within the year for taxes “ imposed by the government of any foreign country as a condition to carrying on business therein.” That corporation tax was an excise on the privilege of doing business in a corporate capacity. The provision with respect to taxes laid by a foreign government manifestly referred to that government which, as the statute said, imposed a privilege tax. There was no suggestion that the foreign government laying the tax must have an international status; it was enough that it had authority to require the payment “ as a condition to carrying on business.” In the Income Tax Act of 1913, Paragraph G (b), 38 Stat. 173, deduction was allowed, in computing net income of a corporation, of “ all sums paid by it within the year for taxes imposed under the authority of the United States or of any State or Territory thereof, or imposed by the Government of any foreign country.” The Income Tax Act of 1916, §§ 5 (a), 6 (a) and 12 (a), 39 Stat. 759, 769, provided for deduction from gross income of “ Taxes paid within the year imposed by the authority of the United States, or its Territories, or possessions, or any foreign country, or under the authority of any State, county, school district, or municipality, or other taxing subdivision of any State, not including those assessed against local benefits.” The Income Tax Amendments of 1917, §§ 1201 (1), 1207 (1), 40 Stat. 330, 335, continued the provisions for deductions as to taxes imposed “ by the authority ” of “ any foreign country ” in obviously the same sense.8 8 These provisions in the Act of 1917 read: " Taxes paid within the year imposed by the-authority of the United States (except income and excess profits taxes), or of its Territories, or possessions, or any foreign country, or by the authority of any State, county, school district, or municipality, or other taxing subdivision of any State, not including those assessed against local benefits.” 12 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. There appears to be no room for the conclusion that, under these Acts, the deductions for taxes paid abroad were available only if paid to a foreign government that had an international standing, and not if paid to a foreign government which, although not having that standing, was still authorized to exact the taxes. The criterion was the fact that the tax was imposed by the authority of a foreign country and not the international status of the particular government to which it was paid. We have not been referred to any opposing administrative construction of these Acts.8 9 The Revenue Act of 1918, with its provisions for credits, against income taxes laid here, of taxes paid “ to any foreign country, upon income derived from sources therein,” §§ 222 (a), 238 (a); 40 Stat. 1073, 1080,10 was 8 On the contrary, Treasury Regulations No. 33, Revised (issued in January, 1918, applicable to the Income Tax Acts of 1916 and 1917) had the following provision in Article 8 with respect to the deductions allowed to citizens and resident aliens for taxes paid abroad: “ Taxes: State or any political subdivision thereof, Federal or foreign (except income and excess profits taxes paid to the United States), and not including taxes assessed against local benefits.” The provision of these regulations as to the taxes deductible in cases of corporations, had the same import. This provision was as follows: “Art. 191. Taxes deductible.—Taxes imposed against a corporation by authority of the United States (except income and excess-profits taxes) its territories or any foreign country, or by authority of any State, county, school district, municipality, or other taxing subdivision of a State (not including those assessed against local benefits) and paid within the year for which the return is made, are deductible from the gross income of a domestic corporation.” 10 These provisions as to individuals were as follows: “ Sec. 222 (a). That the tax computed under Part II of this title shall be credited with: “(1) In the case of a citizen of the United States, the amount of any income, war-profits and excess-profits taxes paid during the tax- BURNET v. CHICAGO PORTRAIT CO. 13 1 Opinion of the Court. enacted with this background and we find no basis whatever for the conclusion that the term “ foreign country ” was used in that statute in any different sense. In the Act of 1918, the provisions for deductions from gross income, in computing net income, by citizens or residents, and by domestic corporations, of taxes paid to a foreign country, were continued as in the prior acts, save that there was excepted from these deductions the amount of the credits now allowed to citizens and residents under § 222 and to domestic corporations under § 238 (40 Stat. 1067).* 11 In these provisions for deductions, the expres- able year to any foreign country, upon income derived from sources therein, or to any possession of the United States; and “(2) In the case of a resident of the United States, the amount of any such taxes paid during the taxable year to any possession of the United States; and “(3) In the case of an alien resident of the United States who is a citizen or subject of a foreign country, the amount of any such taxes paid during the taxable year to such country, upon income derived from sources therein, if such country, in imposing such taxes, allows a similar credit to citizens of the United States residing in such country; . . .” And with respect to domestic corporations: “Sec. 238 (a). That in the case of a domestic corporation the total taxes imposed for the taxable year by this title and by Title III shall be credited with the amount of any income, war-profits and excessprofits taxes paid during the taxable year to any foreign country; upon income derived from sources therein, or to any possession of the United States. . . .” 11 These provisions for deductions in the Revenue Act of 1918 were: “Sec. 214 (a) . . . (3). Taxes paid or accrued within the taxable year imposed (a) by the authority of the United States, except income, war-profits and excess-profits taxes; or (b) by the authority of any of its possessions, except the amount of income, war-profits and excess-profits taxes allowed as a credit under section 222; or (c) by the authority of any State or Territory, or any county, school district, municipality, or other taxing subdivision of any State or Territory, not including those assessed against local benefits of a kind 14 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. sion “ foreign country ” undoubtedly had the same meaning that it had in the prior income tax acts.* 12 It will be observed that taxes paid to the States of the Union, or to their political subdivisions, were deductible from gross income.13 But in the provisions introduced in the Act of 1918 for credits against income taxes, such taxes paid to the States of the Union, and to their political subdivisions, were not included.14 This fact does not affect the present question, for credits were allowed in the case of income taxes paid to foreign countries, and the provision as to such countries was the same in the section relating to credits as in that with respect to deductions. The slight difference in phraseology in §§ 222 and 238 as to credits for taxes paid “ to any foreign country,” instead of taxes imposed “ by the authority oj any foreign country,” as in §§ 214 (a) and 234 (a)15 is not important. As the context plainly shows, both phrases were intended to convey the same meaning. Thus § 234 (a) (3) (d) provides for deduction, in computing the net income of tending to increase the value of the property assessed; or (d) in the case of a citizen or resident of the United States, by the authority of any foreign country, except the amount of income, war-profits and excess-profits taxes allowed as a credit under section 222; . . Section 234 (a) (3) (d) provided for a similar deduction of taxes paid by a domestic corporation, excepting from such deductions the credits allowed under section 238. 12 Treasury Regulations No. 45, under the Revenue Act of 1918, thus described these deductions: ‘'Art. 131. Taxes.—Federal taxes (except income, war profits and excess profits taxes), State and local taxes (except taxes assessed against local benefits of a kind tending to increase the value of the property assessed), and taxes imposed by possessions of the United States or by foreign countries (except the amount of income, war profits and excess profits taxes allowed as a credit against the tax), are deductible from gross income. . . See, supra, note 9. ™ Supra, note 11. 14 Supra, note 10. M Supra, note 11. BURNET v. CHICAGO PORTRAIT CO. 15 1 Opinion of the Court. a domestic corporation, of the taxes imposed “ by the authority of any foreign country, except the amount of income, war-profits and excess-profits taxes allowed as a credit under section 238.” The distinction made with respect to income taxes paid to the States of the Union, and to their political subdivisions, between deductions from gross income and credits against taxes, simply reflected the economic policy adopted in making allowances for taxes paid within the borders of continental United States and the organized territories. In relation to income taxes paid outside these borders, the provision as to credits was enacted to give greater and not less relief. Not only was the same expression as to foreign countries used in the section as to credits against income taxes as had been employed, and was still continued, as to deductions from gross income, but that the reference was not to a government having an international status was indicated by the provision for similar credits in cases of income taxes paid to “any possession of the United States.”* 18 And that the dominant thought in the mind of the Congress was to allow a credit for income taxes paid in any foreign country, whenever imposed by the authority of a foreign government, is shown in the reports, above cited, of the committees in connection with the Revenue Bill of 1918.17 No change, or qualification, was made in the use of the term “ foreign country ” in the Revenue Act of 1921,18 and we think it must be regarded as having the same significance as it unquestionably had through the series of the prior income tax acts to which we have referred. The same controlling purpose is manifest, and the credit provision, here in question, in relation to taxable dividends “See §§ 222 (a) and 238 (a) of the Revenue Act of 1918; supra, note 10. 11 Supra, note 6. 18 Supra, notes 1 and 5. 16 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. from foreign subsidiaries of domestic corporations was introduced not to narrow that purpose but to carry it out more effectively.19 The present controversy has arisen under the Treasury Regulations adopted with respect to the Revenue Acts of 1918 and 1921 as to credits.20 The familiar, principle is invoked that great weight is attached to the construction consistently given to a statute by the executive department charged with its administration. United States v. Jackson, 280 U.‘ S. 183, 193. But the qualification of that principle is as well established as the principle itself. The Court is not bound by an administrative construction, and if that construction is not uniform and consistent, it will be taken into account only to the extent that it is supported by valid reasons. United States v. Missouri Pacific R. Co., 278 U. S. 269, 280. See, also, United States v. Dickson, 15 Pet. 141, 161; United States N. Hedley, 160 U. S. 136, 145; Chicago, Milwaukee & St. Paul Ry. Co. v. McCaull-Dinsmore Co., 253 U. S. 97, 99. Moreover, ambiguous regulations are of little value in resolving statutory ambiguities. In the Preliminary Edition of Treasury Regulations No. 45 under the Act of 1918, Article 382 relating to credits stated: “1 Foreign country ’ means any governmental authority, not that of the United States or any part or possession thereof, having power to impose such taxes, and it therefore includes a self-governing colony, such as the Dominion of Canada.” But this provision was shortly superseded in the amended Regulations No. 45, promulgated 19 See reports of committees in relation to the Revenue Bill of 1921, supra, note 7. 20 So far as deductions of taxes from gross income, in computing net income, are concerned, the regulation under the Act of 1918 was continued under that of 1921. Treasury Regulations No. 62, Art. 131; see, supra, note 12. BURNET v. CHICAGO PORTRAIT CO. 17 1 Opinion of the Court. April 17, 1919, by a new Article 382 containing the following: “‘Foreign country’ includes within its meaning any foreign sovereign state or self-governing colony (for example, the Dominion of Canada), but does not include a foreign municipality (for example, Montreal) unless itself a sovereign State (for example, Hamburg). ‘Any possession of the United States’ includes, among others, Porto Rico, the Philippines and the Virgin Islands.” The Department thus sought to introduce a qualification as to the significance of ‘ foreign country ’ not found in the words of the statute, or in those of the preceding income tax acts, or in departmental regulations under them, and one that was inconsistent with the apparent purpose of the enactment. It was a qualification which not only did not conform to the view that the expression ‘ foreign country ’ was limited to a foreign State having the status of an international person under international law, but, on the other hand, afforded no definite criterion. Its phrase ‘ self-governing colony ’ had no certain application, as there are colonies with varying degrees of self-government, and if, in view of the aim of the statute, it was important to draw a distinction with respect to self-government, it would appear that the particular phase of autonomy that was relevant to the purpose of the statute was the competency to impose income taxes upon the domestic corporation, or its foreign subsidiary, with respect to which the relief was granted. It is true that certain foreign political divisions which formerly had not had an international status were achieving it; but even that progress, at the time of the adoption of the regulation in 1919,21 was still uncertain both as to the quality and extent of the international recognition which would be accorded, and, however im- n See Oppenheim, International Law, 4th ed., vol. 1, §§ 63, 94a, 946. 137818°—32--2 18 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. portant in other relations that progress might be, it was not the concern of this statute, and its operation cannot be deemed to depend upon it. The departmental regulation became the more ambiguous as it proceeded with its illustrations relating to municipalities. By § 216 (e) of the Revenue Act of 1918, a nonresident alien individual was allowed credits for personal exemptions and for dependents if the ‘country’ of which he was a citizen or subject allowed a similar credit to citizens of the United States not residing in 1 such country.’ Article 307 of Regulations No. 45 gave a list of 1 countries ’ which satisfied the credit requirements of this provision. This list was amended in later editions of these regulations, applicable to the Revenue Act of 1918, and embraced a great variety of 1 countries,’ including, for example, British Honduras, Ceylon, Cyprus, Fiji Islands, Gibraltar, Gold Coast, Malay States, Mauritius, St. Kitt-Nevis, etc.22 As already noted, the expression 1 foreign 22 See Article 307, Treasury Decisions, vol. 21, p. 245; vol. 23, p. 444; vol. 24, p. 118. As finally amended, the Article was as follows: “Art. 307. When nonresident alien individual entitled to personal exemption.—(a) The following is an incomplete list of countries which either impose no income tax or in imposing an income tax allow both a personal exemption and a credit for dependents which satisfy the similar credit requirement of the statute: Argentina, Bahama, Barbados, Basutoland, Bechuanaland Protectorate, Belgium, Bermuda, Bolivia, Bosnia, Brazil, British Guiana, British Honduras, Bukowina, Bulgaria, Canada, Carniola, Ceylon, Chile, China, Colombia, Cuba, Cyprus, Czechoslovakia, including Bohemia, Moravia, and Slovakia, Dalmatia, Denmark, Ecuador, Egypt, Falkland Islands, Fiji Islands, France, Galicia, Gambia, Germany, Gibraltar, Gold Coast, Goritz, Gradisca, Greece, Grenada, Guatemala, Herzegovina, Hongkong, Istria, Jamaica, Kenya, Luxemburg, Malay States, Malta, Mauritius, Mexico, Montenegro, Montserrat, Morocco, Newfoundland, Nicaragua, Nigeria, Northern Rhodesia, Norway, Nyasaland Protectorate, Panama, Paraguay, Persia, Peru, Porto Rico, Portugal, Rumania, St. Kitt-Nevis, St. Helena, Santo Domingo, Serbia, Siam, Sierra Leone, Silesia, Somaliland Protectorate, Spain, Swaziland, Switzerland, Trieste, Uganda Protectorate, Union of South Africa, Venezuela, Virgin Islands (British), Weihaiwei, Western Pacific Islands, BURNET v. CHICAGO PORTRAIT CO. 19 1 Opinion of the Court. country’ was used in § 222 (a) (3) of the Revenue Act of 1918 in relation to credits allowed to an alien resident of the United States for taxes upon income derived from sources in such ‘ country,’ if the latter allowed a similar credit to citizens of the United States.23 Article 385 of Regulations No. 45, set forth the list of i countries ’ which did or did not satisfy this reciprocal credit requirement. This Article further illustrates the ambiguity of the regulations.24 Zanzibar Protectorate, (b) The following is an incomplete list of countries which in imposing an income tax allow a personal exemption which satisfies the similar credit requirement of the statute, but do not allow a credit for dependents: Bachka, Banat of Temesvar, Croatia, Finland, India, Italy, Salvador, Slavonia, Transylvania, (c) The following is an incomplete list of countries which in imposing an income tax do not allow to citizens of the United States not residing in such country either a personal exemption or a credit for dependents and therefore fail entirely to satisfy the similar credit requirements of the statute: Australia, Austria, including Carinthia, Lower Austria, Salzberg, Styria, Tyrol, Upper Austria and Vienna, Costa Rica, Dutch Guiana, Great Britain and Ireland, Japan, the Netherlands, New Zealand, Trinidad, Sweden. The former names of certain of these territories are here used for convenience, in spite of an actual or possible change in name or sovereignty. A nonresident alien individual who is a citizen or subject of any country in the first list is entitled for the purpose of the normal tax to such credit for personal exemption and for dependents as his family status may warrant. If he is a citizen or subject of any country in the second list he is entitled to a credit for personal exemption, but to none for dependents. If he is a citizen or subject of any country in the third list he is not entitled to credit for either personal exemption or for dependents. If he is a citizen or subject of a country which is in none of the lists, then to secure credit for either a personal exemption or for dependents he must prove to the satisfaction of the commissioner that his country does not impose an income tax or that in imposing an income tax it grants the similar credit required by the statute.” 23 Supra, note 10. 24 Article 385 of Regulations No. 45 is as follows (Treasury Decisions, vol. 3, p. 473): “Art. 385. Countries which do or do not satisfy the similar credit requirement.—(a) The following is an incomplete list of the countries 20 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. It is urged, that the Revenue Act of 1921 must be deemed to have been adopted with the meaning attributed to the term ‘ foreign country ’ by the regulations under the Act of 1918. But regulations of such an ambiguous character supplying no definite criterion cannot be deemed to determine satisfactorily the interpretation which satisfy the similar credit requirement of section 222 (a) (3) of the Revenue Act of 1918, either by allowing to citizens of the United States residing in such countries a credit for the amount of income, war profits, or excess profits taxes paid to the United States upon incomes derived from sources therein, or in imposing such taxes, by exempting from taxation the incomes received from sources within the United States by citizens of the United States residing in such countries: Bulgaria, Canada, Italy, Newfoundland, Salvador, (b) The following is an incomplete list of the countries which do not satisfy the similar credit requirement of section 222 (a) (3) of the Revenue Act of 1918, either by allowing no credit to citizens of the United States residing in such countries, for the amount of income, war profits, or excess profits taxes paid to the United States upon incomes derived from sources therein, or because such countries do not impose any income, war profits, or excess profits taxes: Argentina, Bahama, Belgium, Bermuda, Bolivia, Bosnia, Brazil, Chile, China, Costa Rica, Ecuador, Egypt, Finland, France, Great Britain and Ireland, Guatemala, Herzegovina, India, Jamaica, Japan, Montenegro, Morocco, New Zealand, Nicaragua, Panama, Paraguay, Persia, Peru, Portugal, Roumania, Santo Domingo, Serbia, Siam, Sweden, Switzerland, Venezuela. The former names of certain of these territories are here used for convenience in spite of the actual or possible change in the name or sovereignty. A resident of the United States who is a citizen or subject of any country in the first list is entitled, for the purpose of the total tax due the United States for 1918 and subsequent years, to a credit for the amount of any income, war profits, and excess profits taxes paid or accrued during t?ie taxable year to such country upon income from sources therein. If he is a citizen or subject of any country in the second list, he is not entitled to such credit. If he is a citizen or subject of a country which is in neither list, then to secure the desired credit he must prove to the satisfaction of the Commissioner that his country satisfies the similar credit requirement of the statute.” BURNET v. CHICAGO PORTRAIT CO. 21 1 Opinion of the Court. of the statute. The Revenue Act of 1918 had continued the expression 1 foreign country ’ precisely as it had been used in the preceding income tax acts without any such restricting gloss, and the Act of 1921 continued the expression as used in the Act of 1918. In these circumstances, we are of the opinion that the expression ‘ foreign country’ in the Act of 1921 should be deemed to have the same significance in that Act that it had in the prior acts and was not limited by the regulations adopted under the Act of 1918. The regulations under the Act of 1921 were of the same equivocal sort as those to which we have referred under the Act of 1918, and can be deemed to have no greater effect.25 The decisions of the Treasury Department26 applying these regulations have no more force than the reasons given to sustain them and these, in our opinion, furnish no adequate ground for denying effect to the credit provisions of the statute in accordance with their manifest purpose. In this view, we find it unnecessary to consider the arguments that have been adduced with respect to the status of New South Wales in its relation to the Commonwealth of Australia. There is no question that New South Wales levied the income taxes for which credit is sought and that its government had adequate authority to impose them. We conclude that the Board of Tax Appeals and the Circuit Court of Appeals were right in holding that these income taxes fell within the statutory provision as to credits, and the judgment is affirmed. Judgment affirmed. 25 Regulations No. 62, Articles 382, 385. 89 Solicitor’s Memorandum No. 1187, October 18, 1919; Office Decision No. 1050, C. B. 5, p. 194, Solicitor’s Memorandum No. 1614, C. B. HI-1, p. 227. 22 OCTOBER TERM, 1931. Syllabus. 285 U.S. CROWELL, DEPUTY COMMISSIONER, v. BENSON.* CERTIORARI TO THE CIRCUIT COURT OF APPEALS FOR THE FIFTH CIRCUIT. No. 19. Argued October 20, 21, 1931.—Decided February 23, 1932. 1. In virtue of its power to alter or revise the maritime law, Congress may provide that where employees in maritime employment are disabled or die from accidental injuries arising out of or in the course of their employment upon the navigable waters of the United States, their employers shall pay reasonable compensation, without regard to fault as the cause of injury, and be thereby relieved from other liability. P. 39. 2. The Longshoremen’s and Harbor Workers’ Compensation Act, which provides a scheme for compensation in the class of cases above described, applicable if recovery “ through workmen’s compensation proceedings may not validly be provided by State law,” upheld as to substantive provisions. P. 22. 3. The classifications of disabilities and beneficiaries and the amounts of compensation provided in the Act not being unreasonable, the Act in those respects is consistent with the due process clause of the Fifth Amendment. Pp. 41-42. 4. The difficulty of ascertaining actual damages justifies the fixing of standard compensation in such an Act at figures reasonably approximating probable damages. Id. 5. Considerations respecting the reflation of master and servant, which sustain workmen’s compensation laws of the States against objections under the due process clause of the Fourteenth Amendment^ are applicable to the substantive provisions of this Act of Congress, tested by the due process clause of the Fifth Amendment. Id. 6. Claims for compensation under the above-mentioned Act are filed with administrative officers called deputy commissioners, who “ shall have full power and authority to hear and determine all questions in respect of such claim.” They may issue subpoenas which are enforcible through contempt proceedings in federal courts. In in- * Together with No. 20, Crowell, Deputy Commissioner, and Knudsen v. Benson. CROWELL v. BENSON. 23 22 Syllabus. vestigating and hearing claims they are not to be bound by the common-law or statutory rules of evidence, except as provided in the Act, but are to proceed in such manner “ as to best ascertain the rights of the parties.” Hearings are to be public and reported stenographically and records are to be made, for which the Commission created by the Act must provide by regulation. Orders for compensation are to become final in 30 days. When compensation ordered is not paid, a supplementary order may be made declaring the amount in default, and judgment for that amount may be entered in a federal court if the order "is in accordance with law.” Review of such judgment may be had as in suits for damages at common law. The Act further provides that if a compensation order is " not in accordance with law,” it may be suspended or set aside, in whole or in part, through injunction proceedings against the deputy commissioner who made it; and also that beneficiaries of such an order, or the deputy commisioner, may have it enforced in a federal court if the court determines that the order “ was made and served in accordance with law.” Held: (1) As the claims are governed by the maritime law and within the admiralty jurisdiction, trial by jury is not required by the Seventh Amendment. P. 45. (2) The Act reserves to the admiralty courts full power to pass upon all questions of law, including the power to deny effect to an administrative finding which is without evidence or contrary to the indisputable character of the evidence, or where the hearing was inadequate, unfair, or arbitrary. In this respect it satisfies due process and attempts no interference with the judicial power in admiralty and maritime cases. Pp. 46, 49. (3) As regards questions of fact, the Act does not expressly preclude the court, in proceedings to set aside an order as not in accordance with law, from making its own examination and determination of facts whenever that is deemed necessary to enforce constitutional rights; and, as the Act is to be construed to support rather than to defeat it, no such limitation should be implied. P. 46. (4) Apart from constitutional rights to be enforced in court, the Act contemplates that, in cases within its purview, the findings of a deputy commissioner on questions of fact respecting injuries to employees shall be final if supported by evidence. P. 46. (5) So limited, the use of the administrative method for determining facts (assuming due notice and opportunity to be heard and that findings are based upon evidence) is consistent with due process 24 OCTOBER TERM, 1931. Syllabus. 285U.S. and is not an unconstitutional invasion of the judicial power. Pp. 47, 51. (6) The Act requires a public hearing and that all proceedings upon a particular claim shall be shown in the record and open to challenge and opposing evidence; facts known to the deputy commissioner but not put in evidence will not support a compensation order. P. 48. (7) The provision that the deputy commissioner shall not be bound by the rules of evidence applicable in a court or by technical rules of procedure is compatible with due process provided the substantial rights of the parties be not infringed. Id. (8) Equipping the admiralty courts with power of injunction, for enforcing the standards of maritime law as defined by the Act, is consistent with Art. Ill of the Constitution. P. 49. (9) Where the question of fact relates to either of the two fundamental and jurisdictional conditions of the statute, viz., (a) occurrence of the injury upon navigable waters of the United States, and (b) existence of the relation of master and servant, the finding of the deputy commissioner is not conclusive, but the question is determinable de novo by the court on full pleadings and proofs in a suit for an injunction, in which the court is not confined to the evidence taken and record made before the deputy commissioner. The statute is susceptible of this construction and must be so construed to avoid unconstitutionality. Pp. 54, 62. (10) In amending and revising the maritime law, Congress can not reach beyond the constitutional limits of the admiralty and maritime jurisdiction. P. 55. (11) Congress has no general authority to amend the maritime law so as to establish liability without fault in maritime cases regardless of particular circumstances or relations,—in this instance, the relation of master and servant. P. 56. 7. As respects the power of Congress to provide for determinations of fact otherwise than through the exercise of the judicial power reposed by the Constitution in the courts of the United States, a clear distinction exists between cases arising between the Government and other persons which by their nature do not require judicial determination (though they may be susceptible of it) and cases of private right, that is, of the liability of one individual to another under the law as defined. P. 50.. 8. Proper maintenance of the federal judicial power in enforcing constitutional restrictions precludes a power in Congress to substitute for constitutional courts, in which the judicial power of the United CROWELL v. BENSON. 25 22 Argument for Petitioner. States is vested, an administrative agency for the final determination of facts upon which the enforcement of the constitutional rights of the citizen depend. P. 56. 9. A State, on the other hand, may distribute its powers as it sees fit, provided only that it acts consistently with the essential demands of due process and does not transgress restrictions of the Federal Constitution applicable to state authority. P. 57. 10. The power of Congress to change the procedure of the courts of admiralty would not justify lodging in an administrative officer final decision of facts upon which the constitutional rights of individuals are dependent. P. 61. 11. In deciding upon the validity of an Act of Congress, regard must be had to substance rather than form. P. 53. 12. Where the validity of an Act of Congress is drawn in question or where a serious doubt of its constitutionality is raised, it is a cardinal principle that the court will first ascertain whether a construction of the Act is fairly possible by which the question may be avoided. P. 62. 13. A declaration in a statute that if any of its provisions, or the application thereof to any persons or circumstances, shall be found unconstitutional, the validity of the remainder of the statute and the applicability of its provisions to other persons or circumstances shall not be affected, evidences an intention that no implication from the terms of the Act which would render them invalid should be indulged. P. 63. 45 F. (2d) 66, affirmed. Certiorari, 283 U. S. 814, to review a decree which affirmed a decree of the District Court, 33 F. (2d) 137; 38 id. 306, enjoining the enforcement of an award of compensation made by a deputy commissioner under the Longshoremen’s and Harbor Workers’ Compensation Act. Solicitor General Thacher, with whom Mr. Erwin N. Griswold was on the brief, for Crowell, petitioner. This statute is a comprehensive workmen’s compensation law, modeled after the New York state compensation law. See H. Rep. No. 1190, 69th Cong., 1st Sess., p. 2. 26 OCTOBER TERM, 1931. Argument for Petitioner. 285 U.S. Unless the provision confining court review to questions of law is valid, the time required for final determination of awards will be greatly increased and the Act will have fallen far short of its mark. The provision that the administrative determination of fact shall be conclusive in the courts, when supported by evidence, is found in a great majority of the state workmen’s compensation laws. The state courts have without exception upheld such provisions. In at least two instances this Court has considered state workmen’s compensation laws which contained provisions that administrative findings of fact should be final. New York Central R. Co. v. White, 243 U. S. 188; Booth Fisheries Co. v. Industrial Commission, 271 U. S. 208. Under § 21, the only ground on which a compensation order may be set aside is that it is11 not in accordance with law.” This language was adopted from the statutory provision for review of the decisions of the Board of Tax Appeals, § 1003 (b), Rev. Act 1926, under which it is settled that the Board’s determinations of fact, when supported by evidence, are conclusive. Phillips v. Commissioner, 283 U. S. 589; Old Colony Trust Co. v. Commissioner, 279 U. S. 716; Avery v. Commissioner, 22 F. (2d) 6; American Savings Bank & Tr. Co. v. Burnet, 45 F. (2d) 548; Nichols v. Commissioner, 44 F. (2d) 157; Bedell v. Commissioner, 30 F. (2d) 622. There is no room for any other construction of the same words as they are used in the present Act. Had Congress intended a trial de novo, the jurisdiction of the court would not have been limited to consideration of the legality of the administrative order. The words “ if not in accordance with law,” which plainly limit the power of the court to “ suspend or set aside ” the order, like the words “as the facts and law of the case may CROWELL v. BENSON. 27 22 Argument for Petitioner. warrant ” under consideration in Ma-King Co. N. Blair, 271 U. S. 479, 483, merely give the court authority to determine whether the order is based upon an error of law, is wholly unsupported by the evidence, or is arbitrary or capricious. This interpretation is strongly supported by the frame and purpose of the Act as a whole. All the provisions of the Act dealing with the manner in which a remedy is given to an injured employee and the limited time within which action must be taken, indicate a clear intention that the facts shall be speedily determined by the deputy commissioner so that compensation may be awarded without the delay usually incident to litigation in the courts. The due process clause of the Fifth Amendment is fully satisfied by the provision for a hearing before an administrative tribunal and for a judicial review of the administrative determination if that determination is “ not in accordance with law.” Reetz v. Michigan, 188 U. S. 505, 507; Weimer v. Bunbury, 30 Mich. 201, 211; Long Island Water Co. v. Brooklyn, 166 U. S. 685, 695; Phillips v. Commissioner, 283 U. S. 589, 600. In numerous instances Congress has expressly provided that administrative findings of fact when supported by evidence shall be conclusive. Fed. Tr. Comm. Act, U. S. C., Tit. 15, § 45; Clayton Act, id. § 21; Tariff Act, 1922, U. S. C., Tit. 19, § 176; Tariff Act, 1930, U. S. C., Supp. IV, Tit. 19, § 1337 (c); Radio Act, id. Tit. 47, § 96. In many decisions of this Court statutes of this type have been applied, and in other decisions findings of administrative bodies have been held conclusive, even though the statutes involved did not explicitly so provide. Federal Trade Comm. n. Curtis Pub. Co., 260 U. S. 568, 580; International Shoe Co. v. Federal Trade Comm., 280 U. S. 291, 297, The courts will not review the findings of fact of the Interstate Commerce Commission by passing upon the 28 OCTOBER TERM, 1931. Argument for Petitioner. 285U.S. credibility of witnesses or the effective weight of testimony. See e. g., Interstate Commerce Comm. v. Delaware, L. & W. R. Co., 220 U. S. 235, 251; id. v. Union Pac. R. Co., 222 U. S. 541; id. v. Louisville & N. R. Co., 227 U. S. 88; Western Papermakers Co. v. United States, 271 U. S. 268; Virginian Ry. Co. v. United States, 272 U. S. 658, 663. Decisions of heads of executive departments upon questions of fact are final and conclusive. Bates de Guild Co. v. Payne, 194 U. S. 106; Public Clearing House v. Coyne, 194 U. S. 407; Houston n. St. Louis Packing Co., 249 U. S. 479; Tagg Bros. & Moorhead v. United States, 280 U. S. 420, 443, 444; Medbury v. United States, 173 U. S. 492; Nishimura Ekiu v. United States, 142 U. S. 651; Fong Yue Ting v. United States, 149 U. S. 698; Lem Moon Sing v. United States, 158 U. S. 538; United States v. Ju Toy, 198 U. S. 253; Quon Quon Poy v. Johnson, 273 U. S. 352. So of determinations of fact by other administrative officials. Passavant v. United States, 148 U. S. 214; Smelting Co. n. Kemp, 104 U. S. 636; Burjenning v. Chicago, St. P., M. & 0. Ry. Co., 163 U. S. 321, 323; Johnson v. Drew, 171 U. S. 93; Silberschein v. United States, 266 U. S. 221; United States v. Williams, 278 U. S. 255; Maying Co. v. Blair, 271 U. S. 479, 483; Williamsport Wire Rope Co. v. United States, 277 U. S. 551. Findings of fact of the Board of Tax Appeals are conclusive upon the courts. Phillips v. Commissioner, 283 U. S. 589. See also Old Colony Trust Co. v. Commissioner, 279 U. S. 716. There is nothing in the Constitution establishing a universal rule that there must be a trial de novo in the courts in all suits to set aside decisions made by administrative authorities. The award of compensation by a deputy commissioner and the finding of facts upon which it is made are not different by nature from findings and CROWELL v. BENSON. 29 22 Argument for Petitioner. orders made by the Federal Trade Commission, the Interstate Commerce Commission, or other administrative bodies. The jurisdiction of the District Court under § 21 (b) is limited to a determination of the question whether the order is “ not in accordance with law.” This requires a consideration of the case on the record made before the deputy commissioner. If there is substantial evidence to support the order, the findings of the deputy commissioner are conclusive. Distinguishing: Ohio Valley Water Co. v. Ben Avon Borough, 253 U. S. 287; Bluefield Co. v. Public Serv. Comm., 262 U. S. 679, 689; Lehigh Valley R. Co. v. Commissioners, 278 U. S. 24, 37-41 ; Liu Hop Fong v. United States, 209 U. S. 453, 461; Ng Fung Ho v. White, 259 U. S. 276, 284. See Dickinson, Administrative Justice and the Supremacy of Law (1927) pp. 39-75; Frankfurter, The Task of Administrative Law (1927) 75 U. of P. L. Rev. 614, 619-20. The decision in the Ohio Valley Water Co. case is simply that a legislative rate-making order of a commission must be subject to the same review as an act of the legislature. It did not overrule decisions arising in other fields of administrative activity in which it has repeatedly been held that determinations of fact may be made conclusive when they are supported by evidence. Indeed, many such decisions have been announced by this Court since the decision of the Ohio Valley Water Co. case. See e. g., Federal Trade Comm. v. Curtis Pub. Co., 260 U. S. 568, 580; Virginian Ry. Co. v. United States, 272 U. S. 658, 663; United States v. Williams, 278 U. S. 255; Tagg Bros. & Moorhead v. United States, 280 U. S. 420, 443-444; Phillips v. Commissioner, 283 U. S. 589. In the present case the administrative proceedings were not legislative in character but were brought to determine a present liability based on past facts and exist- 30 OCTOBER TERM, 1931. Argument for Petitioner. 285 U.S. ing legislation. In such a case the administrative body is sitting in a quasi-judicial capacity, and under the numerous decisions of this Court, heretofore referred to, its conclusions on the facts when supported by evidence may properly be made conclusive. The Liu Hop Fong case is clearly no more than a determination that the statute there involved by its terms provided for a trial de novo on an appeal to the District Court. In Ng Fung Ho n. White, 259 U. S. 276, the question of citizenship was considered to be jurisdictional, because, if the person was a citizen, the Secretary of Labor was wholly without authority to order his deportation. Of course, administrative determinations are valid only when they are made within the power which has been conferred. The determination of the question whether the administrative officer has exceeded his authority is essentially a question of law, subject to review in the courts. No such question arises in this case. The statute defines the commissioner’s jurisdiction. It grants “ full power and authority to hear and determine all questions” in respect of the claim for compensation. § 19 (a). It follows that Knudsen’s assertion of employment, made in his claim and disputed by Benson, presented a question which the commissioner had power—that is, jurisdiction—to determine. There was nothing inherent in the nature of this issue to distinguish it from other questions of fact which may constitutionally be left to administrative determination. At the time Knudsen was employed, Benson had notice through the Act that liability might be imposed. The liability was a risk incidental to his business. Probably the present question would never have been raised were it not for the decision in the Ohio Valley Water Co. case. In all of the other numerous cases involving it in the lower federal courts, the contention we make has been sustained. CROWELL v. BENSON. 31 22 Argument for Petitioner. A great majority of the state workmen’s compensation acts expressly provide that administrative findings of fact shall be final. Apparently without a single exception such provisions have been held valid and constitutional by the state courts. The decisions reaching this result are too numerous to catalogue. See especially Nega v. Chicago Rys. Co., 317 Ill. 483; Helf rick v. Dahlstrom Metallic Door Co., 256 N. Y. 199. There is no basis for the contention that the federal district courts sitting in admiralty are the only tribunals competent to consider compensation for injuries sustained on navigable waters. When the injury is such that it is merely a matter of local concern, compensation may be had under the state compensation laws and the award may be made by the administrative tribunals created by the State. Seamen injured on navigable waters may recover under the Jones Act in actions at law commenced in state courts. When the remedy sought is in personam, it may be by libel in the District Court, or by an action at law in a federal or state court. This enactment was within the power of Congress to alter, amend, or revise the maritime law. No limitation upon the exercise of this power is to be found in the words of the Constitution extending the judicial power of the United States to all cases of admiralty and maritime jurisdiction. The court below erred in directing a transfer from the equity to the admiralty side. Mr. Alexis T. Gresham, with whom Mr. Palmer Pillans was on the brief, for Knudsen, petitioner. The question relates solely to the procedural provisions of the Act. The makers of the Constitution were not concerned with fixing the jurisdiction of the lower courts of the general Government as between Congress 32 OCTOBER TERM, 1931. Argument for Respondent. 285 U.S. and the judiciary, much less with establishing the procedure of such courts. To reach the conclusion found by the courts below, it must be held that the Constitution denies the right of the Congress to fix the procedure of the lower federal courts in respect to the determination of facts. But even the States may in matters of mere local concern exclude the jurisdiction of the admiralty courts over, cases to which the jurisdiction otherwise would extend. However, the power of the Congress in the maritime law is broad and paramount. By it that law has from time to time been materially changed, the jurisdiction of the lower federal courts defined and restricted, the procedure of the district courts sitting in admiralty defined and regulated. In fields of congressional activity other than the maritime field Congress has restricted the jurisdiction of the inferior federal tribunals, and has done so constitutionally, as this court has decided. Jurisdiction, either original or appellate, may extend (save in certain cases before this Court) as Congress wills. There is no distinction in the congressional grants of judicial power between the field of maritime activity and other fields entrusted to the general Government. If the Congress may restrict the jurisdiction of the inferior federal courts to limits beyond which those courts had theretofore exercised jurisdiction, as respecting cases arising under the Constitution and laws of the United States, it may so limit cases within the admiralty and maritime jurisdiction. A fortiori Congress may, in a proceeding under a maritime workers’ compensation act, require determinations of fact in the first instance to be reached by an administrative officer. Mr. Harry T. Smith, with whom Mr. Vincent F. Kilborn was on the brief, for respondent. The ruling on the motions to dismiss the bill did not raise the question of whether the cause was triable de CROWELL v. BENSON. .33 22 Argument for Respondent. novo, or in admiralty, and petitioners entered upon a de novo trial in the District Court, offered evidence and took their chance of a favorable decision, without objection or exception to such procedure, and should not be heard to complain that the proceedings were irregular or erroneous. Commissioner v. St. Louis S. W. Ry. Co., 257 U. S. 547; Reavis v. Fianza, 215 U. S. 16, 25. The only issue in fact tried and decided by the District Judge was whether or not Knudsen was an employee of Benson. If he was not, the deputy commissioner had no power or jurisdiction to enter an award in his favor. Ng Fung Ho v. White, 259 U. S. 276; United States v. Grimley, 137 U. S. 147; Crowell v. Benson, 45 F. (2d) 66; Pine v. Industrial Comm., 108 Okla. 185; Borgnis v. Falk Co., 147 Wis. 327; Courier v. Simpson Const. Co., 264 Ill. 488; Hunter v. Colfax Consol. Coal Co., 175 la. 245; Uphoff v. Industrial Board, 271 Ill. 312; Hahnemann Hospital v. Industrial Board, 282 Ill. 316; Thede Bros. v. Industrial Comm., 285 Ill. 483; Paul v. Industrial Comm., 288 Ill. 532; Dorion Bros. v. Industrial Comm., 173 Cal. 250; Roberts v. Industrial Comm., 52 Cal. App. 31; Industrial Comm. v. Evans, 52 Utah 394. The jurisdiction of the deputy commissioner being special and limited, the District Court had the right to determine, on its independent judgment of the law and the evidence offered before it, whether jurisdiction to make the award existed, or whether the deputy commissioner acted beyond and without his jurisdiction. Fundamental and jurisdictional questions are always open to determination in the courts, whether the order or decision be made by a court of special or limited jurisdiction, or by an administrative board or body; the question of whether such a board or body acted within or beyond its jurisdiction is always a judicial question. Ng Fung Ho v. White, 259 U. S. 276; United States n. Grimley, 137 U. S. 147; Hawkins v. Bleakly, 243 U. S. 210, 215; Kempe’s Lessee 137818°—32----3 34 OCTOBER TERM, 1931. Argument for Respondent. 285U.S. v. Kennedy, 5 Cranch 173, 185; McClaughry v. Deming, 186 U. S. 49, 63; Runkle v. United States, 122 U. S. 543, 555; Givens v. Zerbst, 255 U. S. 11, 19. The question as to whether such an award is subject to review de novo upon matters other than the jurisdictional facts does not seem to us to be material, as it was the finding of the court in this case that the jurisdictional facts did not exist. Since it is provided by the Constitution that no citizen shall be deprived of life, liberty and property without due process of law, what difference does it make under what classification we may place the commissioner? Surely it matters not from what source authority may be obtained or what powers Congress may attempt to confer upon him, he can never be so empowered as to enable him to condemn a citizen to liability to another, by any proceedings which may be beyond the limits of his jurisdiction; and this proposition is accentuated when it appears, as in this case, that the order has not been based entirely upon the evidence produced at a hearing, but has been based, at least in part, upon the information obtained by the commissioner from other sources. To limit the court, in its review of the jurisdictional facts, to a consideration of the evidence offered before the commissioner at the hearing would make it impossible for the court to consider the question of jurisdiction at all, since the commissioner was not required to and did not reveal in his report either the nature or the result of the private inquiries upon which he relied, in part or in whole, for his finding, so that such findings as he made could not be reviewed except upon a proceeding de novo. There is no express provision in the Act for an appeal only on questions of law or that the commissioner’s finding of facts shall be conclusive if supported by any substantial evidence. The method of review provided is in a court ordinarily of original jurisdiction only, and the CROWELL v. BENSON. 35 22 Argument for Respondent. proceeding prescribed is original in character. There is no provision in regard to how the proceedings in the court shall be heard, nor as to what papers shall be filed or what testimony given. There is no provision that the proceedings shall be upon a transcript of the proceedings before the commissioner or for bringing up a record by bill of exceptions. Every consideration exists in this case that influenced the court to hold in the case of Liu Hop Fong n. United States, 209 U. S. 453, 461-2, that a Chinaman appealing to the District Court from the judgment or order of a United States Commissioner in cases arising under the Chinese Exclusion Law, is entitled to a trial de novo. The case is one within the admiralty and maritime jurisdiction, and even on appeal in such cases, unless Congress has clearly indicated the contrary, the trial is de novo both on the law and the facts. The expression “ not in accordance with law ” is equivocal and should not be so construed as to take away jurisdiction of admiralty cases of this character expressly and clearly conferred on the federal courts. The Act if construed to accord a hearing de novo in the District Court, will not materially affect a speedy hearing in most cases; and if it did, justice should not be sacrificed to speed, nor should the clear jurisdiction conferred on district courts be withdrawn by implication from an argument of convenience. The fact that, while the Act is modeled on the New York Act, it omits the provisions of that Act making the finding of the commissioner final on all questions of fact and providing for the certifying only of questions of law, is strongly indicative that Congress never intended an appeal only on questions of law. Conceding the power of Congress, a party should not be deprived of the security of a judicial hearing heretofore plainly provided for, unless that result is made necessary by clear and unmistakable language. 36 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. This is a case or controversy under a new system of admiralty or maritime rules; and the application of those rules to a past state of facts, so as to determine liability vel non as between a contesting employer and employee, involves the exercise of the judicial power of the Federal Government which, under Art. 3, §§ 1 and 2 of the Constitution, can only be exercised by a constitutional court created under that article. Ex parte Bakelite Corp., 279 U. S. 438; American Ins. Co. v. Carter, 1 Pet. 511, 546; Den v. Hoboken Land & Imp. Co., 18 How. 272; Kansas v. Colorado, 206 U. S. 46. Any attempt by Congress to confer this judicial power or jurisdiction on any federal administrative officer, board or legislative court would violate that article, and likewise would violate the due process clause of the Fifth Amendment, because it is not the process provided for such cases by the Constitution. Martin v. Hunter's Lessee, 1 Wheat. 304; Ng Fung Ho v. White, 259 U. S. 276. To construe the Act as contended for by petitioners would at least raise a grave question as to its constitutionality which should always be avoided, if possible. United States v. Jin Fuey Moy, 241 U. S. 394, 401; United States v. La Franca, 282 U. S. 568; Russian Volunteer Fleet v. United States, 282 U. S. 481. Mr. Chief Justice Hughes delivered the opinion of the Court. This suit was brought in the District Court to enjoin the enforcement of an award made by petitioner Crowell, as deputy commissioner of the United States Employees’ Compensation Commission, in favor of the petitioner Knudsen and against the respondent Benson. The award was made under the Longshoremen’s and Harbor Workers’ Compensation Act (Act of March 4, 1927, c. 509, 44 Stat. 1424; U. S. C. Tit. 33, §§ 901-950) and rested upon CROWELL v. BENSON. 37 22 Opinion of the Court. the finding of the deputy commissioner that Knudsen was injured while in the employ of Benson and performing service upon the navigable waters of the United States. The complainant alleged that the award was contrary to law for the reason that Knudsen was not at the time of his injury an employee of the complainant and his claim was not ‘ within the jurisdiction ’ of the deputy commissioner. An amended complaint charged that the Act was unconstitutional upon the grounds that it violated the due process clause of the Fifth Amendment, the provision of the Seventh Amendment as to trial by jury, that of the Fourth Amendment as to unreasonable search and seizure, and the provisions of Article III with respect to the judicial power of the United States. The District Judge denied motions to dismiss and granted a hearing de novo upon the facts and the law, expressing the opinion that the Act would be invalid if not construed to permit such a hearing. The case was transferred to the admiralty docket, answers were filed presenting the issue as to the fact of employment, and the evidence of both parties having been heard, the District Court decided that Knudsen was not in the employ of the petitioner and restrained the enforcement of the award. 33 F. (2d) 137; 38 F. (2d) 306. The decree was affirmed by the Circuit Court of Appeals, 45 F. (2d) 66, and this Court granted writs of certiorari. 283 U. S. 814. The question of the validity of the Act may be considered in relation to (1) its provisions defining substantive rights and (2) its procedural requirements. First. The Act has two limitations that are fundamental. It deals exclusively with compensation in respect of disability or death resulting “from an injury occurring upon the navigable waters of the United States” if recovery “ through workmen’s compensation proceedings 38 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. may not validly be provided by State law,” and it applies only when the relation of master and servant exists. §3? “ Injury,” within the statute, “ means accidental injury or death arising out of and in the course of employment,” and the term “ employer ” means one “ any of whose employees are employed in maritime employment, in whole or in part,” upon such navigable waters. § 2 (2) (4). Employers are made liable for the payment to their employees of prescribed compensation “ irrespective of fault as a cause for the injury.” § 4. The liability is exclusive, unless the employer fails to secure payment of the compensation. § 5. The employer is required to furnish appropriate medical and other treatment. § 7. The compensation for temporary or permanent disability, total or partial, according to the statutory classification, and in case of the death of the employee, is fixed, being based upon prescribed percentages of average weekly wages, and the persons to whom payments are to be made are designated. §§ 6, 8, 9, 10. Employers must secure the pay- 1 Section three of the Act as to “ Coverage ” provides: “ Sec. 3. (a) Compensation shall be payable under this Act in respect of disability or death of an employee, but only if the disability or death results from an injury occurring upon the navigable waters of the United States (including any dry dock) and if recovery for the disability or death through workmen’s compensation proceedings may not validly be provided by State law. No compensation shall be payable in respect of the disability or death of— “(1) A master or member of a crew of any vessel, nor any person engaged by the master to load or unload or repair any small vessel under eighteen tons net; or “(2) An officer or employee of the United States or any agency thereof or of any State or foreign government, or of any political subdivision thereof. “(b) No compensation shall be payable if the injury was occasioned solely by the intoxication of the employee or by the willful intention of the employee to injure or kill himself or another.” CROWELL v. BENSON. 39 22 Opinion of the Court ment of compensation by procuring insurance or by becoming self-insurers in the manner stipulated. § 32. Failure to provide such security is a misdemeanor. § 38. As the Act relates solely to injuries occurring upon the navigable waters of the United States, it deals with the maritime law, applicable to matters that fall within the admiralty and maritime jurisdiction (Const. Art. Ill, § 2; Nogueira N. N. Y., N. H. & H. R. Co., 281 U. S. 128,138) ; and the general authority of the Congress to alter or revise the maritime law which shall prevail throughout the country is beyond dispute.2' In limiting the application of the Act to cases where recovery “ through workmen’s compensation proceedings may not validly be provided by State law,” the Congress evidently had in view the decisions of this Court with respect to the scope of the exclusive authority of the national legislature.3 The pro- 2 Waring v. Clarke, 5 How. 441, 457, 458; The Lottawanna, 21 Wall. 558, 577; Butler v. Boston & Savannah Steamship Co., 130 U. S. 527, 556, 557; In re Garnett, 141 U. S. 1, 14; The Hamilton, 207 U. S. 398, 404; Atlantic Transport Co. v. Imbrovek, 234 U. 8. 52, 62; Southern Pacific Co. v. Jensen, 244 U. 8. 205, 214, 215; Knickerbocker Ice Co. v. Stewart, 253 U. 8. 149, 160; Washington v. Dawson, 264 U. S. 219, 227, 228; Panama R. Co. v. Johnson, 264 U. 8. 375, 386, 388. Important illustrations of the exercise of this authority are the Limitation of Liability Act of 1851 (9 Stat. 635; Hartford Accident & Indemnity Co. v. Southern Pacific Co., 273 U. 8. 207, 213—215); the Spam pin’s Act of 1915 (38 Stat. 1185; Chelentis v. Luckenbach Steamship Co., 247 U. S. 372, 381, 384); the Ship Mortgage Act of 1920 (41 Stat. 1000; Morse Drydock & Repair Co. v. Northern Star, 271 U. S. 552, 555, 556); and the Merchant Marine Act of 1920, incorporating, in relation to seamen, the Federal Employers’ Liability Act into the maritime law of the United States (41 Stat. 1007; Panama R. Co. v. Johnson, supra; Engel v. Davenport, 271 U. 8. 33, 35; Panama R. Co. v. Vasquez, 271 U. S. 557, 559, 560; Northern Coal Co. n. Strand, 278 U. 8. 142, 147). See U. S. C., Titles 33 and 46. 3 Southern Pacific Co. v. Jensen, 244 U. S. 205; Knickerbocker Ice Co. n. Stewart, 253 U. S. 149; Washington v. Dawson, 264 U. S. 219; 40 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. priety of providing by Federal statute for compensation of employees in such cases had been expressly recognized by this Court,4 and within its sphere the statute was designed to accomplish the same general purpose as the workmen’s compensation laws of the States.5 In de- Robins Dry Dock & Repair Co. v. Dahl, 266 U. S. 449. For decisions since the passage of the Act in question, see Messel v. Foundation Co., 274 U. S. 427; Northern Coal & Dock Co. v. Strand, 278 U. S. 142; London Guarantee & Accident Co. v. Industrial Commission, 279 U. S. 109, 125; Baizley Iron Works v. Span, 281 U. S. 222. The application of State Workmen’s Compensation Acts has been sustained where the work of the employee has been deemed to have no direct relation to navigation or commerce and the operation of the local law “ would work no material prejudice to the essential features of the general maritime law.” Western Fuel Co. v. Garcia, 257 U. S. 233, 242; Grant Smith-Porter Co. v. Rohde, 257 U. S. 469, 477; Millers’ Indemnity Underwriters v. Braud, 270 U. S. 59, 64; Sultan Railway & Timber Co. v. Department of Labor, 277 U. S. 135, 137; Baizley Iron Works v. Span, supra, at pp. 230, 231. See, also, Red Cross Line v. Atlantic Fruit Co., 264 U. S. 109. 4 Washington v. Dawson, 264 U. S. 219, 227, where the Court said “ Without doubt Congress has power to alter, amend or revise the maritime law by statutes of general application embodying its will and judgment. This power, we think, would permit enactment of a general employers’ liability law or general provisions for compensating injured employees; but it may not be delegated to the several States.” 5 The Committee on the Judiciary of the Senate, in reporting upon the proposed measure, said (Sen. Rep. No. 973, 69th Cong., 1st sess., p. 16): “ The committee deems it unnecessary to comment upon the modern change in the relation between employers and employees establishing systems of compensation as distinguished from liability. Nearly every State in the Union has a compensation law through which employees are compensated for injuries occurring in the course of their employment without regard to negligence on the part of the employer or contributory negligence on the part of the employee. If longshoremen could avail themselves of the benefits of State compensation laws, there would be no occasion for this legislation; but, unfortunately, they are excluded from these laws by reason of the character of their employment; and they are not only excluded but CROWELL v. BENSON. 41 22 Opinion of the Court. fining substantive rights, the Act provides for recovery in the absence of fault, classifies disabilities resulting from injuries, fixes the range of compensation in case of disability or death, and designates the classes of beneficiaries. In view of Federal power to alter and revise the maritime law, there appears to be no room for objection on constitutional grounds to the creation of these rights, unless it can be found in the due process clause of the Fifth Amendment. But it cannot be said that either the classifications of the statute or the extent of the compensation provided are unreasonable. In view of the difficulties which inhere in the ascertainment of actual damages, the Congress was entitled to provide for the payment of amounts which would reasonably approximate the probable damages. See Chicago, B. & Q. R. Co. v. Cram, 228 U. S. 70, 84; compare Missouri Pacific Ry. Co. v. Tucker, 230 U. S. 340, 348. Liability without fault is not unknown to the maritime law,6 and, the Supreme Court has more than once held that Federal legislation can not, constitutionally, be enacted that will apply State laws to this occupation. (Southern Pacific Co. v. Jensen, 244 U. S. 205; Knickerbocker Ice Co. v. Stewart, 253 U. S. 149; Washington v. Dawson & Co., 264 U. S. 219.)” The House Committee in its report made the following statement (House Rep. No. 1767, 69th Cong., 2d sess., p. 20): “ The principle of workmen’s compensation has become so firmly established that simple justice would seem to require that this class of maritime workers should be included in this legislation. . . . “ The bill as amended, therefore, will enable Congress to discharge its obligation to the maritime workers placed under their jurisdiction by the Constitution of the United States by providing for them a law whereby they may receive the benefits of workmen’s compensation and thus afford them the same remedies that have been provided by legislation for those killed or injured in the course of their employment in nearly every State in the Union.” * See, e. g., The Osceola, 189 U. S. 158, 169; The Iroquois, 194 U. S. 240, 241, 242. In Chicago, R. I. & P. R. Co. v. Zemecke, 183 U. S. 582, 586, the Court said: "Our jurisprudence affords examples of legal liability without fault, and the deprivation of property without 42 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. apart from this fact, considerations are applicable to the substantive provisions of this legislation, with respect to the relation of master and servant, similar to those which this Court has found sufficient to sustain workmen’s compensation laws of the States against objections under the due process clause of the Fourteenth Amendment. New York Central R. Co. v. White, 243 U. S. 188; Mountain Timber Co. v. Washington, 243 U. S. 219; Ward & Gow v. Krinsky, 259 U. S. 503; Lower Vein Coal Co. v. Industrial Board, 255 U. S. 144; Madera Sugar Pine Co. v. Industrial Accident Comm., 262 U. S. 499, 501, 502; Sheehan Co. v. Shuler, 265 U. S. 371; Dahlstrom Metallic Door Co. v. Industrial Board, 284 U. S. 594. See Nogueira v. N. Y., N. H. H. R. Co., supra, at pp. 136, 137. Second. The objections to the procedural requirements of the Act relate to the extent of the administrative authority which it confers. The administration of the Act— ‘ except as otherwise specifically provided ’—was given to the United States Employees’ Compensation Commission,7 which was authorized to establish compensation districts, appoint deputy commissioners, and make regulations. §§ 39, 40. Claimants must give written notice to the deputy commissioner and to the employer of the injury or death within thirty days thereafter; the deputy commissioner may excuse failure to give such notice for satisfactory reasons. § 12. If the employer contests the right to compensation, he is to file notice to that effect. § 14 (d). A claim for compensation must be filed with fault being attributable to its owner. The law of deodands was such an example. The personification of the ship in admiralty law is another.” See Holmes, “The Common Law,” pp. 26-29; The China, 1 Wall. 53, 67, 68; Sherlock v. Alling, 93 U. S. 99, 105-108; Homer Ramsdell Co. v. Compagnie Générale Transatlantique, 182 U. S. 406, 413, 414. As to the basis of general average contribution, see Rolli v. Troop, 157 U. S. 386, 394, 395. 7 This Commission was created by the Act of September 7, 1916, e. 458, § 28, 39 Stat. 748; U. S. C., Tit. 5, § 778. CROWELL v. BENSON. 43 22 Opinion of the Court. the deputy commissioner within a prescribed period, and it is provided that the deputy commissioner shall have full authority to hear and determine all questions in respect to the claim. §§ 13, 19 (a). Within ten days after the claim is filed, the deputy commissioner, in accordance with regulations prescribed by the Commission, must notify the employer and any other person who is considered by the deputy commissioner to be an interested party. The deputy commissioner is required to make, or cause to be made, such investigations as he deems to be necessary and upon application of any interested party must order a hearing, upon notice, at which the claimant and the employer may present evidence. Employees claiming compensation must submit to medical examination. § 19. In conducting investigations and hearings, the deputy commissioner is not bound by common law or statutory rules of evidence, or by technical or formal rules of procedure, except as the Act provides, but he is to proceed in such manner “ as to best ascertain the rights of the parties.” § 23 (a). He may issue subpoenas, administer oaths, compel the attendance and testimony of witnesses, the production of documents or other evidence or the taking of depositions, and may do all things conformable to law which may be necessary to enable him effectively to discharge his duties. Proceedings may be brought before the appropriate Federal court to punish for misbehavior or contumacy as in case of contempt. § 27. Hearings before the deputy commissioner are to be public and reported stenographically, and the Commission is to provide by regulation for the preparation of a record. § 23 (b).8 Compensation orders are to be filed in the office of the deputy commissioner, and copies must be sent 8 In the regulations promulgated by the Commission in the form of instructions to deputy commissioners, provision was made for find-ings of fact. Report, United States Employees’ Compensation Commission, for fiscal year ending June 30, 1930, p. 64. See Howard v. Monahan, 33 F. (2d) 220. 44 OCTOBER TERM, 1931. Opinion of the Court. 285U.S. to the claimant and employer. § 19. The Act provides that it shall be presumed, in the absence of substantial evidence to the contrary, that the claim comes within the provisions of the Act, that sufficient notice of claim has been given, that the injury was not occasioned solely by the intoxication of the injured employee, or by the willful intention of such employee to injure or kill himself or another. § 20. A compensation order becomes effective when filed, and unless proceedings are instituted to suspend it or set it aside, it becomes final at the expiration of thirty days. § 21 (a). If there is a change in conditions, the order may be modified or a new order made. § 22. In case of default for thirty days in the payment of compensation, application may be made to the deputy commissioner for a supplementary order declaring the amount in default. Such an order is to be made after investigation, notice and hearing, as in the case of claims. Upon filing a certified copy of the supplementary order with the clerk of the Federal court, as stated, judgment is to be entered for the amount declared in default, if such supplementary order “is in accordance with law.” Review of the judgment may be had as in civil suits for damages at common law and the judgment may be enforced by writ of execution. § 18. The Act further provides that if a compensation order is “ not in accordance with law,” it “ may be suspended or set aside, in whole or in part, through injunction proceedings, mandatory or otherwise, brought by any party in interest ” against the deputy commissioner making the order and instituted in the Federal district court for the judicial district in which the injury occurred.9 Payment is not to be stayed pending such proceedings unless, on hearing after notice, the court allows the stay on evi- 9 In the District of Columbia, the proceedings are to be instituted in the Supreme Court of the District. CROWELL v. BENSON. 45 22 Opinion of the Court. dence showing that the employer would otherwise suffer irreparable damage. § 21 (b). Beneficiaries of awards, or the deputy commissioner, may apply for enforcement to the Federal district court and, if the court determines that the order “was made and served in accordance with law,” obedience may be compelled by writ of injunction or other proper process. § 21 (c).10 As the claims which are subject to the provisions of the Act are governed by the maritime law as established by the Congress and are within the admiralty jurisdiction, the objection raised by the respondent’s pleading as to the right to a trial by jury under the Seventh Amendment is unavailing (Waring n. Clarke, 5 How. 441, 459, 460); and that under the Fourth Amendment is neither explained nor urged. The other objections as to procedure invoke the due process clause and the provision as to the judicial power of the United States. (1) The contention under the due process clause of the Fifth Amendment relates to the determination of questions of fact. Rulings of the deputy commissioner upon questions of law are without finality. So far as 10 The United States Employees’ Compensation Commission estimates that the number of employees who at times are engaged in employments covered by the Act is in excess of 300,000. Report for fiscal year ending June 30, 1931, p. 66. The Commission states that 138,788 cases have been closed during the four years that the law has been in operation. Id., p. 69. During the last fiscal year the injuries reported under the Act numbered 28,861, of which 156 were ‘fatal’ cases. The total number of cases disposed of during that year, including those brought forward from the preceding years, was 30,489, of which there were 13,261 ‘ non-fatal ’ cases which caused no loss of time, and 4,067 of such cases in which the duration of disability did not exceed seven days. Compensation payments were completed in 11,776 cases. Hearings held by deputy commissioners during the fiscal year number 1,217, of which 905 involved compensation payments. At the end of the fiscal year, there were 102 cases pending in federal district courts wherein the plaintiffs asked review of compensation orders. Id,, 68-70. 46 OCTOBER TERM, 1931. Opinion of the Court. 285U.S. the latter are concerned, full opportunity is afforded for their determination by the Federal courts through proceedings to suspend or to set aside a compensation order, § 21 (b), by the requirement that judgment is to be entered on a supplementary order declaring default only in case the order follows the law (§ 18), and by the provision that the issue of injunction or other process in a proceeding by a beneficiary to compel obedience to a compensation order is dependent upon a determination by the court that the order was lawfully made and served. § 21 (c). Moreover, the statute contains no express limitation attempting to preclude the court, in proceedings to set aside an order as not in accordance with law, from making its own examination and determination of facts whenever that is deemed to be necessary to enforce a constitutional right properly asserted. See Ohio Valley Water Co. v. Ben Avon Borough, 253 U. S. 287, 289; Ng Fung Ho v. White, 259 U. S. 276, 284, 285; Prendergast v. New York Telephone Co., 262 U. S. 43, 50; Tagg Bros. & Moorhead v. United States, 280 U. S. 420, 443, 444; Phillips v. Commissioner, 283 U. S. 589, 600. As the statute is to be construed so as to support rather than to defeat it, no such limitation is to be implied. Panama Railroad Co. v. Johnson, 264 U. S. 375, 390. Apart from cases involving constitutional rights to be appropriately enforced by proceedings in court, there can be no doubt that the Act contemplates that, as to questions of fact arising with respect to injuries to employees within the purview of the Act, the findings of the deputy commissioner, supported by evidence and within the scope of his authority, shall be final. To hold otherwise would be to defeat the obvious purpose of the legislation to furnish a prompt, continuous, expert and inexpensive method for dealing with a class of questions of fact which are peculiarly suited to examination and determination by an administrative agency specially assigned to that task. CROWELL v. BENSON. 47 22 Opinion of the Court. The object is to secure within the prescribed limits of the employer’s liability an immediate investigation and a sound practical judgment, and the efficacy of the plan depends upon the finality of the determinations of fact with respect to the circumstances, nature, extent and consequences of the employee’s injuries and the amount of compensation that should be awarded. And this finality may also be regarded as extending to the determination of the question of fact whether the injury “ was occasioned solely by the intoxication of the employee or by the willful intention of the employee to injure or kill himself or another.” While the exclusion of compensation in such cases is found in what are called “ coverage ” provisions of the Act (§3), the question of fact still belongs to the contemplated routine of administration, for the case is one of employment within the scope of the Act and the cause of the injury sustained by the employee as well as its character and effect must be ascertained in applying the provisions for compensation. The use of the administrative method for these purposes, assuming due notice, proper opportunity to be heard, and that findings are based upon evidence, falls easily within the principle of the decisions sustaining similar procedure against objections under the due process clauses of the Fifth and Fourteenth Amendments.11 The statute provides for notice and hearing; and an award made without proper notice, or suitable opportu- 11 Long Island Water Supply Co. v. Brooklyn, 166 U. S. 685, 695; Crane v. Hahlo, 258 U. S. 142, 147; Federal Trade Comm. v. Curtis Publishing Co., 260 IT. S. 568, 580; Silberschein v. United States, 266 IT. S. 221, 225; Virginian Ry. Co. v. United States, 272 U. S. 658, 663; Tagg Bros. & Moorhead v. United States, 280 U. S. 420, 442; International Shoe Co. n. Federal Trade Comm., 280 IT. S. 291, 297; Do-hany v. Rogers, 281 U. S. 362, 369; Phillips v. Commissioner, 283 U. S. 589, 600. See, also, Hardware Dealers Mutual Fire Ins. Co. v. Glidden, 284 U. S. 151; New York Central R. R. Co. v. White, supra, at pp. 194, 207, 208; Mountain Timber Co. v. Washington, supra, at p. 233. 48 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. nity to be heard, may be attacked and set aside as without validity. The objection is made that, as the deputy commissioner is authorized to prosecute such inquiries as he may consider necessary, the award may be based wholly or partly upon an ex parte investigation and upon unknown sources of information, and that the hearing may be merely a formality. The statute, however, contemplates a public hearing and regulations are to require “ a record of the hearings and other proceedings before the deputy commissioner.” § 23 (b). This implies that all proceedings by the deputy commissioner upon a particular claim shall be appropriately set forth, and that whatever facts he may ascertain and their sources shall be shown in the record and be open to challenge and opposing evidence. Facts conceivably known to the deputy commissioner, but not put in evidence so as to permit scrutiny and contest, will not support a compensation order. Interstate Commerce Commission v. Louisville & Nashville R. Co., 227 U. S. 88, 93; The Chicago Junction Case, 264 U. S. 258, 263; United States v. Abilene & Southern Ry. Co., 265 U. S. 274, 288. An award not supported by evidence in the record is not in accordance with law. But the fact that the deputy commissioner is not bound by the rules of evidence which would be applicable to trials in court or by technical rules of procedure, § 23 (a), does not invalidate the proceeding, provided substantial rights of the parties are not infringed. Interstate Commerce Comm. v. Baird, 194 U. S. 25, 44; Interstate Commerce Comm. n. Louisville & Nashville R. Co., supra; Spiller v. Atchison, T. ■& S. F. Ry. Co., 253 U. S. 117, 131; United States v. Abilene & Southern Ry. Co., supra; Tagg Bros. Moorhead v. United States, supra, at p. 442. (2) The contention based upon the judicial power of the United States, as extended “ to all cases of admiralty CROWELL v. BENSON. 49 22 Opinion of the Court. and maritime jurisdiction” (Const. Art. Ill), presents a distinct question. In Murray’s Lessee n. Hoboken Land and Improvement Co., 18 How. 272, 284, this Court, speaking through Mr. Justice Curtis, said: “ To avoid misconstruction upon so grave a subject, we think it proper to state that we do not consider congress can either withdraw from judicial cognizance any matter which, from its nature, is the subject of a suit at the common law, or in equity, or admiralty; nor, on the other hand, can it bring under the judicial power a matter which, from its nature, is not a subject for judicial determination.” The question in the instant case, in this aspect, can be deemed to relate only to determinations of fact. The reservation of legal questions is to the same court that has jurisdiction in admiralty, and the mere fact that the court is not described as such is unimportant. Nor is the provision for injunction proceedings, § 21(b), open to objection. The Congress was at liberty to draw upon another system of procedure to equip the court with suitable and adequate means for enforcing the standards of the maritime law as defined by the Act. The Genesee Chief, 12 How. 443, 459, 460. Compare Panama R. Co. v. Johnson, supra, at p. 388. By statute and rules, courts of admiralty may be empowered to grant injunctions, as in the case of limitation of liability proceedings. Hartford Accident & Indemnity Co. v. Southern Pacific Co., 273 U. S. 207, 218. See, also, Marine Transit Corporation v. Dreyfus, 284 U. S. 263. The Congress did not attempt to define questions of law, and the generality of the description leaves no doubt of the intention to reserve to the Federal court full authority to pass upon all matters which this Court had held to fall within that category. There is thus no attempt to interfere with, but rather provision is made to facilitate, the exercise by the court of its jur-137818°—32---1 50 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. isdiction to deny effect to any administrative finding which is without evidence, or1 contrary to the indisputable character of the evidence,’ or where the hearing is ‘ inadequate,’ or ‘ unfair,’ or arbitrary in any respect. Interstate Commerce Comm. v. Louisville R. Co., supra, at pp. 91, 92; Tagg Bros. & Moorhead n. United States, supra. As to determinations of fact, the distinction is at once apparent between cases of private right and those which arise between the Government and persons subject to its authority in connection with the performance of the constitutional functions of the executive or legislative departments. The Court referred to this distinction in Murray’s Lessee v. Hoboken Land and Improvement Co., supra, pointing out that “ there are matters, involving public rights, which may be presented in such form that the judicial power is capable of acting on them, and which are susceptible of judicial determination, but which Congress may or may not bring within the cognizance of the courts of the United States, as it may deem proper.” Thus the Congress, in exercising the powers confided to it, may establish 1 legislative ’ courts (as distinguished from ‘ constitutional courts in which the judicial power conferred by the Constitution can be deposited ’) which are to form part of the government of territories or of the District of Columbia,12 or to serve as special tribunals “ to examine and determine various matters, arising between the government and others, which from their nature do not require judicial determination and yet are susceptible of it.” But “ the mode of determining matters of this class is completely within congressional control. Congress may reserve to itself the power to decide, may delegate that power to executive officers, or may commit it to judicial tribunals.” Ex 12American Insurance Co. v. Canter, 1 Pet. 511, 546; Keller v. Potomac Electric Power Co., 261 U. S. 428, 442-444; Postum Cereal Co. v. California Fig Nut Co., 272 U. S. 693, 700, CROWELL v. BENSON. 51 22 Opinion of the Court. parte Bakelite Corp., 279 U. S. 438, 451. Familiar illustrations of administrative agencies created for the determination of such matters are found in connection with the exercise of the congressional power as to interstate and foreign commerce, taxation, immigration, the public lands, public health, the facilities of the post office, pensions and payments to veterans.13 The present case does not fall within the categories just described but is one of private right, that is, of the liability of one individual to another under the law as defined. But in cases of that sort, there is no requirement that, in order to maintain the essential attributes of the judicial power, all determinations of fact in constitutional courts shall be made by judges. On the common law side of the Federal courts, the aid of juries is not only deemed appropriate but is required by the Constitution itself. In cases of equity and admiralty, it is historic practice to call to the assistance of the courts, without the consent of the parties, masters and commissioners or assessors, to pass upon certain classes of questions, as, for example, to take and state an account or to find the amount of damages. While the reports of masters and commissioners in such cases are essentially of an advisory nature, it has not been the practice to disturb their findings when they are properly based upon evidence, in the absence of errors of law,14 13 Virginian Ry. Co. v. United States, supra; Tagg Bros. & Moorhead v. United States, supra; International Shoe Co. v. Federal Trade Comm., supra; Phillips n. Commissioner, supra; United States v. Ju Toy, 198 U. S. 253, 263; United States v. Babcock, 250 U. S. 328, 331; Burjenning v. Chicago, St. P., M. & 0. Ry. Co., 163 U. S. 321, 323; Bates & Guild Co. v. Payne, 194 U. S. 106, 109; Houston v. St. Louis Packing Co., 249 U. S. 479, 484; Passavant v. United States, 148 U. S. 214, 219; Silberschein v. United States, 266 U. S. 221, 225. 14 As to masters in chancery, see Tilghman v. Proctor, 125 U. S. 136, 149, 150; Callaghan v. Myers, 128 U. S. 617, 666, 667; Kimberly v. Arms, 129 U. S. 512, 523, 524; Davis v. Schwartz, 155 U. S. 631, 636. As to commissioners in admiralty, see The Cayuga (C. C. A. 6th), 59 Fed. 483, 488; La Bourgogne (C. C. A. 2nd), 144 Fed. 781, 782, 52 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. and the parties have no right to demand that the court shall redetermine the facts thus found. In admiralty, juries were anciently in use not only in criminal cases but apparently in civil cases also.15 The Act of February 26, 1845 (c. 20, 5 Stat. 726), purporting to extend the admiralty jurisdiction of the Federal district courts to certain cases arising on the Great Lakes, gave the right “ to trial by jury of all facts put in issue in such suits, where either party shall require it.” After the decision in the case of The Genesee Chief, supra, holding that the Federal district courts possessed general jurisdiction in admiralty over the lakes, and navigable waters connecting them, under the Constitution and the Judiciary Act of 1789 (c. 20, § 9, 1 Stat. pp. 76, 77), this Court regarded the enabling Act of 1845 as “ obsolete and of no effect, with the exception of the clause which gives to either party the right of trial by jury when requested.” The Eagle, 8 Wall. 15, 25. And this provision, the court said, was “ rather a mode of exercising jurisdiction than any substantial part of it.” See R. S. 566, U. S. C., Tit. 28, § 770.16 Chief Justice Taney, in delivering the opinion of the Court in the case of The Genesee Chief, supra, referring to this requirement, thus broadly stated the authority of Congress to change the procedure in courts of admiralty: 783; The North Star (C. C. A. 2nd), 151 Fed. 168, 177; Western Transit Co. v. Davidson S. S. Co. (C. C. A. 6th), 212 Fed. 696, 701; P. Stanford Ross, Inc., v. Public Service Corp. (C. C. A. 3d), 42 Fed. (2d) 79, 80. 18 4 Chr. Robinson’s Admiralty Reports, p. 74, note; Black Book of the Admiralty, Twiss’ ed., vol. 1, pp. 49, 53, 245; 1 Abbott on Shipping, 5th Am. ed., pp. 283, 284; 1 Benedict’s Admiralty, 5th ed., p. 304, note.* "As to the effect of the verdict of the jury in such cases, see The Western States, 159 Fed. 354, 358, 359; Sweeting v. The Western States, 210 U. S. 433; The Nyack, 199 Fed. 383, 389; 1 Benedict’s Admiralty, 5th ed., p. 305. CROWELL v. BENSON. 53 22 Opinion of the Court. “ The power of Congress to change the mode of proceeding in this respect in its courts of admiralty, will, we suppose, hardly be questioned. The Constitution declares that the judicial power of the United States shall extend to 1 all cases of admiralty and maritime jurisdiction.’ But it does not direct that the court shall proceed according to ancient and established forms, or shall adopt any other form or mode of practice. The grant defines the subjects to which the jurisdiction may be extended by Congress. But the extent of the power as well as the mode of proceeding in which that jurisdiction is to be exercised, like the power and practice in all the other courts of the United States, are subject to the regulation of Congress, except where that power is limited by the terms of the Constitution, or by necessary implication from its language. In admiralty and maritime cases there is no such limitation as to the mode of proceeding, and Congress may therefore in cases of that description, give either party right of trial by jury, or modify the practice of the court in any other respect that it deems more conducive to the administration of justice.” It may also be noted that while on an appeal in admiralty cases “ the facts as well as the law would be subjected to review and retrial,” this Court has recognized the power of the Congress “to limit the effect of an appeal to a review of the law as applicable to facts finally determined below.” The Francis Wright, 105 U. S. 381, 386; The Connemara, 108 U. S. 352, 359. Compare Luckenbach S. S. Co. v. United States, 272 U. S. 533, 536, 537. In deciding whether the Congress, in enacting the statute under review, has exceeded the limits of its authority to prescribe procedure in cases of injury upon navigable waters, regard must be had, as in other cases where constitutional limits are invoked, not to mere matters of form but to the substance of what is required. 54: OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. The statute has a limited application, being confined to the relation of master and servant, and the method of determining the questions of fact, which arise in the routine of making compensation awards to employees under the Act, is necessary to its effective enforcement. The Act itself, where it applies, establishes the measure of the employer’s liability, thus leaving open for determination the questions of fact as to the circumstances, nature, extent. and consequences of the injuries sustained by the employee for which compensation is to be made in accordance with the prescribed standards. Findings of fact by the deputy commissioner upon such questions are closely analogous to the findings of the amount of damages that are made, according to familiar practice, by commissioners or assessors; and the reservation of full authority to the court to deal with matters of law provides for the appropriate exercise of the judicial function in this class of cases. For the purposes stated, we are unable to find any constitutional obstacle to the action of the Congress in availing itself of a method shown by experience to be essential in order to apply its standards to the thousands of cases involved, thus relieving the courts of a most serious burden while preserving their complete authority to insure the proper application of the law. (3) What has been said thus far relates to the determination of claims of employees within the purview of the Act. A different question is presented where the determinations of fact are fundamental or ‘ jurisdictional,’17 in the sense that their existence is a condition precedent to the operation of the statutory scheme. These funda- ” The term ‘ jurisdictional,’ although frequently used, suggests analogies which are not complete when the reference is to administrative officials or bodies. See Interstate Commerce Commission v. Humboldt Steamship Co., 224 U. S. 474, 484. In relation to admin-istrative agencies, the question in a given case is whether it falls within the scope of the authority validly conferred. Crowell v. benson. 55 22 Opinion of the Court. mental requirements are that the injury occur upon the navigable waters of the United States and that the relation of master and servant exist. These conditions are indispensable to the application of the statute, not only because the Congress has so provided explicitly (§ 3), but also because the power of the Congress to enact the legislation turns upon the existence of these conditions. In amending and revising the maritime law,18 the Congress cannot reach beyond the constitutional limits which are inherent in the admiralty and maritime jurisdiction.19 Unless the injuries to which the Act relates occur upon the navigable waters of the United States, they fall outside that jurisdiction.20 Not only is navigability itself a question of fact, as waters that are navigable in fact are navigable in law,21 but, where navigability is not in dispute, the locality of the injury, that is, whether it has occurred upon the navigable waters of the United States, determines the existence of the congressional power to create the liability prescribed by the statute.22 Again, it 18 This power is distinct from the authority to regulate interstate or foreign commerce and is not limited to cases arising in that commerce. The Genesee Chief, 12 How. 443, 452; The Commerce, 1 Black 574, 578, 579; The Belfast, 7 Wall. 624, 640, 641; Ex parte Boyer, 109 U. S. 629, 632; In re Garnett, 141 U. S. 1, 15, 17; London Guarantee & Accident Co. v. Industrial Comm., 279 U. S. 109, 124. ® The Belfast, supra; Panama R. Co. v. Johnson, supra; The Genesee Chief, supra, at p. 459; 1 Benedict’s Admiralty, 5th ed., § 32, p. 47. 20 Cleveland Terminal & V. R. Co. v. Cleveland Steamship Co., 208 U. S. 316; Atlantic Transport Co. v. Imbrovek, supra, at pp. 59, 60; Industrial Commission v. Nordenholt Corp., 259 U. 8. 263, 273; Washington v. Dawson, supra, at pp. 227, 235; Nogueira v. N. Y., N. H. & H. R. Co., 281 U. 8. 128, 133, 138. 21 The Daniel Ball, 10 Wall. 557, 563; United States v. Holt State Bank, 270 U. S. 49, 56; United States v. Utah, 283 U. S. 64, 76, 77; Arizona v. California, 283 U. S. 423, 452. 22 Industrial Commission v. Nordenholt Co., supra; Washington v. Dawson, supra; Nogueira v. N. Y., N. H. & H. R. Co., supra; 1 Benedict’s Admiralty, 5th ed., § 29, pp. 41, 42, note. 56 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. cannot be maintained that the Congress has any general authority to amend the maritime law so as to establish liability without fault in maritime cases regardless of particular circumstances or relations. It is unnecessary to consider what circumstances or relations might permit the imposition of such a liability by amendment of the maritime law, but it is manifest that some suitable selection would be required. In the present instance, the Congress has imposed liability without fault only where the relation of master and servant exists in maritime employment and, while we hold that the Congress could do this, the fact of that relation is the pivot of the statute and, in the absence of any other justification, underlies the constitutionality of this enactment. If the person injured was not an employee of the person sought to be held, or if the injury did not occur upon the navigable waters of the United States, there is no ground for an assertion that the person against whom the proceeding was directed could constitutionally be subjected, in the absence of fault upon his part, to the liability which the statute creates. In relation to these basic facts, the question is not the ordinary one as to the propriety of provision for administrative determinations. Nor have we simply the question of due process in relation to notice and hearing. It is rather a question of the appropriate maintenance of the Federal judicial power in requiring the observance of constitutional restrictions. It is the question whether the Congress may substitute for constitutional courts, in which the judicial power of the United States is vested, an administrative agency—in this instance a single deputy commissioner 23—for the final determination of the existence of the facts upon which the enforcement of the constitutional rights of the citizen depend. The recognition of 23 See Report of United States Employees’ Compensation Commission for fiscal year ending June 30, 1931, pp. 108, 109. CROWELL v. BENSON. 57 22 Opinion of the Court. the utility and convenience of administrative agencies for the investigation and finding of facts within their proper province, and the support of their authorized action, does not require the conclusion that there is no limitation of their use, and that the Congress could completely oust the courts of all determinations of fact by vesting the authority to make them with finality in its own instrumentalities or in the Executive Department. That would be to sap the judicial power as it exists under the Federal Constitution, and to establish a government of a bureaucratic character alien to our system, wherever fundamental rights depend, as not infrequently they do depend, upon the facts, and finality as to facts becomes in effect finality in law. In this aspect of the question, the irrelevancy of State statutes and citations from State courts as to the distribution of State powers is apparent. A State may distribute its powers as it sees fit, provided only that it acts consistently with the essential demands of due process and does not transgress those restrictions of the Federal Constitution which are applicable to State authority.24 In relation to the Federal government, we have already noted the inappositeness to the present inquiry of decisions with respect to determinations of fact, upon evidence and within the authority conferred, made by administrative agencies which have been created to aid in the performance of governmental functions and where the mode of determination is within the control of the Congress; as, e. g. in the proceedings of the Land Office pursuant to provisions for the disposition of public lands, of the authorities of the Post Office in relation to postal privileges, of the Bureau of Internal Revenue with respect to taxes, and of the Labor Department as to the ^Prentis v. Atlantic Coast Line, 211 U. S. 210, 225; Chicago, Rock Island & Pacific Ry. Co. v. Cole, 251 U. S. 54, 56; Missouri ex rel. Hurwitz v. North, 271 U. S. 40, 42. 58 OCTOBER TERM. 1981. Opinion of the Court. 285 U.S. admission and deportation of aliens. Ex parte Bakelite Corp., supra.25 Similar considerations apply to decisions with respect to determinations of fact by boards and commissions created by the Congress to assist it in its legislative process in governing various transactions subject to its authority, as for example, the rates and practices of interstate carriers, the legislature thus being able to apply its standards to a host of instances which it is impracticable to consider and legislate upon directly and the action being none the less legislative in character because taken through a subordinate body.26 And where administrative bodies have been appropriately created to meet the exigencies of certain classes of cases and their action is of a judicial character, the question of the conclusiveness of their administrative findings of fact generally arises where the facts are clearly not jurisdictional27 and the scope of review as to such facts has been determined by the applicable legislation. None of the decisions of this sort touch the question which is presented where the facts involved are jurisdictional28 or where the question concerns the proper exercise of the judicial power of the United States in enforcing constitutional limitations. Even where the subject lies within the general authority of the Congress, the propriety of a challenge by judicial proceedings of the determinations of fact deemed to be jurisdictional, as underlying the authority of executive officers, has been recognized. When proceedings are taken against a person under the military law, and enlistment is denied, the issue has been tried and determined de novo upon habeas corpus. In re Grimley, 137 U. S. 147, 154, w Supra, note 13. 28 See Arizona Grocery Co. v. Atchison, Topeka & Santa Fe Ry. Co., 284 U. S. 370. 27 Freund, “Administrative Powers Over Persons and Property,” § 154, p. 293. 28 Id., § 153, pp. 291-293. CROWELL v. BENSON. 59 22 Opinion of the Court. 155. See, also, In re Morrissey, 137 U. S. 157, 158; Givens v. Zerbst, 255 U. S. 11, 20. While, in the administration of the public land system, questions of fact are for the consideration and judgment of the Land Department and its decision of such questions is conclusive, it is equally true that if lands “never were public property, or had previously been disposed of, or if Congress had made no provision for their sale, or had reserved them, the department would have no jurisdiction to transfer them.” This Court has held that “ matters of this kind, disclosing a want of jurisdiction, may be considered by a court of law. In such cases the objection to the patent reaches beyond the action of the special tribunal, and goes to the existence of a subject upon which it was competent to act.” Smelting Co. v. Kemp, 104 U. S. 636, 641. In such a case, the invalidity of the patent may be shown in a collateral proceeding. Polk v. Wendell, 9 Cranch 87 ; Patterson v. Winn, 11 Wheat. 380; Minter v. Crommelin, 18 How. 87; Morton v. Nebraska, 21 Wall. 660, 675; Noble v. Union River Logging Co., 147 U. S. 165, 174. The question whether a publication is a 1 book ’ or a ‘ periodical ’ has been reviewed upon the evidence received in a suit brought to restrain the Postmaster General from acting beyond his authority in excluding the publication from carriage as second class mail matter. Smith v. Hitchcock, 34 App. D. C., 521, 530-533; 226 U. S. 54, 59.^ * 29 Where the doctrine of personal liability of an officer for acting ■without jurisdiction is applied, courts have received evidence to show the jurisdictional defect. Thus in Miller v. Horton, 152 Mass. 540; 126 N. E. 100, an action was brought against the members of a town board of health who had killed a horse in obedience to an order of the commissioners on contagious diseases among domestic animals, acting under the alleged authority of the state legislature. The order recited that the animal had been examined and was adjudged to have the glanders. The judge before whom the case was tried “ found the horse had not the glanders ” but declined to rule against the defendants. The Supreme Judicial Court sustained exceptions, holding that 60 OCTOBER TERM, 1931. Opinion of the Court. 285U.S. In cases brought to enforce constitutional rights, the judicial power of the United States necessarily extends to the independent determination of all questions, both of fact and law, necessary to the performance of that supreme function. The case of confiscation is. illustrative, the ultimate conclusion almost invariably depending upon the decisions of questions of fact. This court has held the owner to be entitled to “ a fair opportunity for submitting that issue to a judicial tribunal for determination upon its own independent judgment as to both law and facts.” Ohio Valley Water Co. v. Ben Avon Borough, supra. See, also, Prendergast v. New York Telephone Co., 262 U. S. 43, 50; Tagg Bros. & Moorhead v. United States, supra; Phillips v. Commissioner, 283 U. S. 589, 600. Jurisdiction in the Executive to order deportation exists only if the person arrested is an alien, and while, if there were jurisdiction, the findings of fact of the Executive Department would be conclusive, the claim of citizenship “ is a denial of an essential jurisdictional fact ” both in the statutory and the constitutional sense, and a writ of habeas corpus will issue “ to determine the status.” Persons claiming to be citizens of the United States “ are entitled to a judicial determination of their claims,” said this Court in Ng Fung Hon. White, supra (259 U. S., at p. 285), and in that case the cause was remanded to the Federal District Court “ for trial in that court of the question of citizenship.” In the present instance, the argument that the Congress has constituted the deputy commissioner a fact-finding tribunal is unavailing, as the contention makes the untenable assumption that the constitutional courts may be “ The fact as to the horse having the disease was open to investigation in the present action, and on the finding that the horse did not have it, the plaintiff was entitled to a ruling that the defendants had failed to make out their justification.” Id., p. 548. See, also, Pearson v. Zehr, 138 Ill. 48, 51, 52; 29 N. E. 854. CROWELL v. BENSON. 61 22 Opinion of the Court. deprived in all cases of the determination of facts upon evidence even though a constitutional right may be involved. Reference is also made to the power of the Congress to change the procedure in courts of admiralty, a power to which we have alluded in dealing with the function of the deputy commissioner in passing upon the compensation claims of employees. But when fundamental rights are in question, this Court has repeatedly emphasized “ the difference in security of judicial over administrative action.” Ng Fung Ho v. White, supra. Even where issues of fact are tried by juries in the Federal courts, such trials are under the constant superintendence of the trial judge. In a trial by jury in a Federal court the judge is “ not a mere moderator ” but “ is the governor of the trial” for the purpose of assuring its proper conduct as well as of determining questions of law. Herron v. Southern Pacific Co., 283 U. S. 91, 95. In the Federal courts, trial by jury “is a trial by a jury of twelve men, in the presence and under the superintendence of a judge empowered to instruct them on the law and to advise them on the facts, and (except on acquittal of a criminal charge) to set aside their verdict if in his opinion it is against the law or the evidence.” Capital Traction Co. v. Hof, 174 U. S. 1, 13, 14. Where testimony in an equity cause is not taken before the court, the proceeding is still constantly subject to the court’s control. And while the practice of obtaining the assistance of masters in chancery and commissioners in admiralty may be regarded, as we have pointed out, as furnishing a certain analogy in relation to the normal authority of the deputy commissioner in making what is virtually an assessment of damages, the proceedings of such masters and commissioners are always subject to the direction of the court and their reports are essentially advisory, a distinction of controlling importance when questions of a fundamental character are in issue. 62 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. When the validity of an act of the Congress is drawn in question, and even if a serious doubt of constitutionality is raised, it is a cardinal principle that this Court will first ascertain whether a construction of the statute is fairly possible by which the question may be avoided.80 We are of the opinion that such a construction is permissible and should be adopted in the instant case. The Congress has not expressly provided that the determinations by the deputy commissioner of the fundamental or jurisdictional facts as to the locality of the injury and the existence of the relation of master and servant shall be final. The finality of such determinations of the deputy commissioner is predicated primarily upon the provision, § 19 (a), that he “shall have full power and authority to hear and determine all questions in respect of such claim.” But “ such claim ” is the claim for compensation under the Act and by its explicit provisions is that of an “ employee,” as defined in the Act, against his “ employer.” The fact of employment is an essential condition precedent to the right to make the claim. The other provision upon which the argument rests is that which authorizes the Federal court to set aside a compensation order if it is “not in accordance with law.” § 21 (b). In the absence of any provision as to the finality of the determination by the deputy commissioner of the jurisdictional fact of employment, the statute is open to the construction that the court in determining whether a compensation order is in accordance with law may determine the fact of employment which underlies the operation of the statute. And, to remove the question as to validity, we think that the statute should be so construed. Further, the Act expressly requires that 30 30 Panama R. Co. v. Johnson, supra, at p. 390; Missouri Pacific R. Co. v. Boone, 270 U. S. 466, 471, 472; Richmond Screw Anchor Co. v. United States, 275 U. S. 331, 346; Blodgett v. Holden, 275 U. S. 142, 148; Lucas v. Alexander, 279 U. S. 573, 577. CROWELL v. BENSON. 63 22 Opinion of the Court. if any of its provisions is found to be unconstitutional, “ or the applicability thereof to any person or circumstances ” is held invalid, the validity of the remainder of the Act and “ the applicability of its provisions to other persons and circumstances ” shall not be affected. § 50. We think that this requirement clearly evidences the intention of the Congress not only that an express provision found to be unconstitutional should be disregarded without disturbing the remainder of the statute, but also that any implication from the terms of the Act which would render them invalid should not be indulged. This provision also gives assurance that there is no violation of the purpose of the Congress in sustaining the determinations of fact of the deputy commissioner where he acts within his authority in passing upon compensation claims while denying finality to his conclusions as to the jurisdictional facts upon which the valid application of the statute depends. Assuming that the Federal court may determine for itself the existence of these fundamental or jurisdictional facts, we come to the question,—Upon what record is the determination to be made? There is no provision of the statute which seeks to confine the court in such a case to the record before the deputy commissioner or to the evidence which he has taken. The remedy which the statute makes available is not by an appeal or by a writ of certiorari for a review of his determination upon the record before him. The remedy is “ through injunction proceedings, mandatory or otherwise.” § 21 (b). The question in the instant case is not whether the deputy commissioner has acted improperly or arbitrarily as shown by the record of his proceedings in the course of administration in cases contemplated by the statute, but whether he has acted in a case to which the statute is inapplicable. By providing for injunction proceedings, the Congress evidently contemplated a suit as in equity, and in such 64 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. a suit the complainant would have full opportunity to plead and prove either that the injury did not occur upon the navigable waters of the United States or that the relation of master and servant did not exist, and hence that the case lay outside the purview of the statute. As the question is one of the constitutional authority of the deputy commissioner as an administrative agency, the court is under no obligation to give weight to his proceedings pending the determination of that question. If the court finds that the facts existed which gave the deputy commissioner jurisdiction to pass upon the claim for compensation, the injunction will be denied in so far as these fundamental questions are concerned; if, on the contrary, the court is satisfied that the deputy commissioner had no jurisdiction of the proceedings before him, that determination will deprive them of their effectiveness for any purpose. We think that the essential independence of the exercise of the judicial power of the United States in the enforcement of constitutional rights requires that the Federal court should determine such an issue upon its own record and the facts elicited before it. The argument is made that there are other facts besides the locality of the injury and the fact of employment which condition the action of the deputy commissioner. That contention in any aspect could not avail to change the result in the instant case. But we think that there is a clear distinction between cases where the locality of the injury takes the case out of the admiralty and maritime jurisdiction, or where the fact of employment being absent there is lacking under this statute any basis for the imposition of liability without fault, and those cases which fall within the admiralty and maritime jurisdiction and where the relation of master and servant in maritime employment exists. It is in the latter field that the provisions for compensation apply and that, for the reasons stated in the earlier part of this opinion, the determina- CROWELL v. BENSON. 65 22 Brandeis, J., dissenting. tion of the facts relating to the circumstances of the injuries received, as well as their nature and consequences, may appropriately be subjected to the scheme of administration for which the Act provides. It cannot be regarded as an impairment of the intended efficiency of an administrative agency that it is confined to its proper sphere, but it may be observed that the instances which permit of a challenge to the application of the statute, upon the grounds we have stated, appear to be few. Out of the many thousands of cases which have been brought before the deputy commissioners throughout the country, a review by the courts has been sought in only a small number,31 and an inconsiderable proportion of these appear to have involved the question whether the injury occurred within the martime jurisdiction or whether the relation of employment existed. We are of the opinion that the District Court did not err in permitting a trial de novo on the issue of employment. Upon that issue the witnesses who had testified before the deputy commissioner and other witnesses were heard by the District Court. The writ of certiorari was not granted to review the particular facts but to pass upon the question of principle. With respect to the facts, the two courts below are in accord, and we find no reason to disturb their decision. Decree affirmed. Mr. Justice Brandeis, dissenting. Knudsen filed a claim against Benson under § 19 (a) of the Longshoremen’s and Harbor Workers’ Compensation Act, March 4, 1927, c. 509, 44 Stat. 1424. Benson’s answer denied, among other things, that the relation of employer and employee existed between him and the claimant. The evidence introduced before the deputy 31 Supra, note 10. 137818°—32--5 66 OCTOBER TERM, 1931. Brandeis, J., dissenting. 285 U.S. commissioner, which occupies 78 pages of the printed record, was directed largely to that issue and was conflicting. The deputy commissioner found that the claimant was in Benson’s employ at the time of the injury, and filed an order for compensation under § 21 (a). Benson brought this proceeding under § 21 (b) to set aside the order. The district judge transferred the suit to the admiralty side of the court and held a trial de novo, refusing to consider upon any aspect of the case the record before the deputy commissioner. On the evidence introduced in court, he found that the relation of employer and employee did not exist, and entered a decree setting aside the compensation order. 33 F. (2d) 137; 38 F. (2d) 306. The Circuit Court of Appeals affirmed the decree. 45 F. (2d) 66. This Court granted certiorari. 283 U. S. 814. In my opinion, the decree should be reversed, because Congress did not authorize a trial de novo. The primary question for consideration is not whether Congress provided, or validly could provide, that determinations of fact by the deputy commissioner should be conclusive upon the district court. The question is: Upon what record shall the district court’s review of the order of the deputy commissioner be based? The courts below held that the respondent was entitled to a trial de novo; that all the evidence introduced before the deputy commissioner should go for naught; and that respondent should have the privilege of presenting new, and even entirely different, evidence in the district court. Unless that holding was correct the judgment below obviously cannot be affirmed. First. The initial question is one of construction of the Longshoremen’s Act. The Act does not in terms declare whether there may be a trial de novo either as to the issue whether the relation of employer and employee existed at the time of the injury, or as to any other issue, tried or triable, before the deputy commissioner. It provides, by § 19 (a), “that the deputy commissioner shall CROWELL v. BENSON. 67 22 Brandeis, J., dissenting. have full power and authority to hear and determine all questions in respect of” a claim; by § 21 (a) that the compensation order made by the deputy commissioner “ shall become effective ” when filed in his office, and “ unless proceedings for the suspension or setting aside of such order are instituted as provided in subdivision (b) of this section, shall become final . . .”; and by § 21 (b) that “ If not in accordance with law, a compensation order may be suspended or set aside, in whole or in part, through injunction proceedings ... instituted in the Federal district court. . . .” The phrase in § 21 (b) providing that the order may be set aside “ if not in accordance with law ” was adopted from the statutory provision, enacted by the same Congress, for review by the Circuit Courts of Appeals of decisions of the Board of Tax Appeals.1 This Court has settled that the phrase as used in the tax statute means a review upon the record made before the Board. Phillips v. Commissioner, 283 U. S. 589, 600. The Compensation Commission has consistently construed the Longshoremen’s Act as providing for finality of the deputy commissioners’ findings on all questions of fact;1 2 and care 1 Revenue Act of 1926, 44 Stat. 110: “Sec. 1003. (a) The Circuit Courts of Appeals and the Court of Appeals of the District of Columbia shall have exclusive jurisdiction to review the decisions of the Board. . . . “(b) Upon such review, such courts shall have power to affirm or, if the decision of the Board is not in accordance with law, to modify or to reverse the decision of the Board, with or without remanding the case for a rehearing, as justice may require.” 2 This opinion was expressed in regulations promulgated by the Commission, under authority conferred by § 39 (a), in the form of instructions to deputy commissioners, dated September 28, 1927; and it was repeated in the Commission’s report at the close of the first year of its administration of the Act. Report of United States Employees’ Compensation Commission, for fiscal year ending June 30, 1928, p. 33. See also id., June 30, 1929, p. 77; id., June 30, 1930, pp. 63-64; id., June 30, 1931, p. 71. The instructions to deputy 68 OCTOBER TERM, 1931. Brandeis, J., dissenting. 285 U.S. has been taken to provide for formal hearings appropriate to that intention. Compare Brown v. United States, 113 U. S. 568, 571; Mason v. Routzahn, 275 U. S. 175, 178. The lower federal courts, except in the case at bar, have uniformly construed the Act as denying a trial de novo of any issue determined by the deputy commissioner; have held that, in respect to those issues, the review afforded must be upon the record made before the deputy commissioner; and that the deputy commissioner’s findings of fact must be accepted as conclusive if supported by evidence, unless there was some irregularity in the proceeding before him.* 3 Nearly all the state commissioners, elaborated December 10, 1927, and May 15, 1928, required that the record of proceedings and findings of fact be prepared, and the proceedings be conducted, in consonance with this view of the law. 3 The question of judicial review under the Act has been passed upon by the First, Second, Third, Fourth and Ninth Circuit Courts of Appeals, as well as the Fifth; by a district court in the Sixth Circuit; and by the Court of Appeals of the District of Columbia, under the Act of May 17, 1928, c. 612, 45 Stat. 600. Pocahontas Fuel Co. v. Monahan, 41 F. (2d) 48, 49 (C. C. A. 1st), aff’g 34 F? (2d) 549, 551, [1929] A. M. C. 1598 (D. Me.); Joyce v. Deputy Commissioner, 33 F. (2d) 218, 219 (D. Me.); Jarka Corp. v. Monahan, 48 F. (2d) 283, 284 (D. Mass.); Booth v. Monahan, 56 F. (2d) 168 (D. Me.); Wilson & Co., Inc. v. Locke, 50 F. (2d) 81, 82 (C. C. A. 2d); Travelers Insurance Co. v. Locke, 56 F. (2d) 443 (S. D. N. Y.); Calabrese v. Locke, 56 F. (2d) 458 (S. D. N. Y.); W. J. McCahan Sugar Refining & Molasses Co. v. Norton, 43 F. (2d) 505, 506 (C. C. A. 3d), aff’g 34 F. (2d) 499, [1929] A. M. C. 1269 (E. D. Pa.); Independent Pier Co. v. Norton (C. C. A. 3d), 54 F. (2d) 734; Baltimore & Carolina S. S. Co. v. Norton, 40 F. (2d) 271, 272 (E. D. Pa.); Merchants’ & Miners’ Transp. Co. v. Norton, 32 F. (2d) 513, 515 (E. D. Pa.); Jarka Corp. v. Norton, 56 F. (2d) 287 (E. D. Pa.); Frank Marra Co. v. Norton, 56 F. (2d) 246 (E. D. Pa.); Wheeling Corrugating Co. v. McManigal, 41 F. (2d) 593, 594, 595 (C. C. A. 4th); Obrecht-Lynch Corp. v. Clark, 30 F. (2d) 144, 146 (D. Md.); Keyway Stevedoring Co. v. Clark, 43 F. (2d) 983 (D. CROWELL v. BENSON. 69 22 Brandeis, J., dissenting. courts have construed the state workmen’s compensation laws, as limiting the judicial review to matters of law.4 Provisions in other federal statutes, similar to Md.); Kranski v. Atlantic Coast Shipping Co., 56 F. (2d) 166 (D. Md.); Chesapeake Ship Ceiling Co. v. Clark (D. Md.), decided May 22, 1930 [oral opinion]; Goble v. Clark, 56 F. (2d) 170 (D. Md.); Michigan Transit Corp. v. Brown, 56 F. (2d) 200 (W. D. Mich.); Northwestern Stevedoring Co. v. Marshall, 41 F. (2d) 28, 29 (C. C. A. 9th); Gunther n. Compensation Commission, 41 F. (2d) 151, 153 (C. C. A. 9th); Grays Harbor Stevedore Co. v. Marshall, 36 F. (2d) 814, 815 (W. D. Wash.); Zurich General Accident & Liability Ins. Co. v. Marshall, 42 F. (2d) 1010, 1011 (W. D. Wash.); Todd Dry Docks, Inc. v. Marshall, 49 F. (2d) 621, 623 (W. D. Wash.); Grays Harbor Stevedore Co. v. Marshall, 36 F. (2d) 814 (W. D. Wash.); Rothschild & Co. v. Marshall, 56 F. (2d) 415 (W. D. Wash.), reversed on other grounds, 44 F. (2d) 546 (C. C. A. 9th); Lea Mathew Shipping Corp. v. Marshall, 56 F. (2d) 860 (W. D. Wash.); Griffiths & Sprague Stevedoring Co. v. Marshall, 56 F. (2d) 665 (W. D. Wash.); W. R. Grace & Co. v. Marshall, 56 F. (2d) 441 (W. D. Wash.); Nelson v. Marshall, 56 F. (2d) 654 (W. D. Wash.); Grant v. Marshall, 56 F. (2d) 654 (W. D. Wash.); Zurich General Accident & Liability Co. v. Marshall, 56 F. (2d) 652 (W. D. Wash.); Ocean Accident & Guarantee Corp. v. Solberg, 56 F. (2d) 607 (W. D. Wash.); compare Lake Washington Shipyards v. Brueggeman, 56 F. (2d) 665 (W. D. Wash.); New Amsterdam Casualty Co. v. Hoage, 46 F. (2d) 837 (Ct. of App. D. C.); Hoage v. Murch Bros. Const. Co., 50 F. (2d) 983, 984 (Ct. of App. D. C.). See also the following decisions by district courts in the Fifth Circuit: Showers n. Crowell, 46 F. (2d) 361 (W. D. La.); Howard v. Monahan, 31 F. (2d) 480, 481, 33 F. (2d) 220, 221 (S. D. Tex.). Compare T. J. Moss Tie Co. v. Tanner, 44 F. (2d) 928 (C. C. A 5th); Houston Ship Channel Stevedoring Co. v. Sheppeard, 57 F. (2d) 259, [1931] A. M. C. 1605 (S. D. Tex.). 4 The Court has been referred to no case arising under the state workmen’s compensation laws recognizing a right to trial de novo in court. Numerous decisions declare administrative findings of fact to be conclusive. The following decisions all dealt with controversies concerning the existence of a relation of employment. Hillen n. Accident Commission, 199 Cal. 577,580; 250 Pac. 570; York Junction Transfer & Storage Co. v. Accident Commissioners, 202 Cal. 517, 521; 261 70 OCTOBER TERM, 1931. Brandeis, J., dissenting. 285 U.S. those here in question, creating various administrative tribunals, have likewise been treated as not conferring the right to a judicial trial de novo.5 & Pac. 704; Index Mines Corporation v. Industrial Commission, 82 Colo. 272, 275; 259 Pac. 1036; Ocean Accident & Guarantee Corp. v. Wilson, 36 Ga. App. 784; 138 S. E. 246; Taylor v. Blackwell Lumber Co., 37 Idaho 707, 721; 218 Pac. 356; Cinofsky v. Industrial Commission, 290 Ill. 521, 525; 125 N. E. 286; Franklin Coal Co. v. Industrial Commission, 296 Ill. 329, 334; 129 N. E. 811; A. E. Norris Coal Co. v. Jackson, 80 Ind. App. 423, 425; 141 N. E. 227; Murphy v. Shipley, 200 Iowa 857, 859; 205 N. W. 497; Churchill’s Case, 265 Mass. 117, 119; 164 N. E. 68; Hill’s Case, 268 Mass. 491, 493; 167 N. E. 914; Matter of Dale v. Saunders Brothers, 218 N. Y. 59, 63; 112 N. E. 571; Federal Mining & Smelting Co. v. Thomas, 99 Okla. 24, 26; 225 Pac. 967; Oklahoma Pipe Line Co. v. Lindsey, 113 Okla. 296, 298; 241 Pac. 1092; Belmonte v. Connor, 263 Pa. 470, 472; 106 Atl. 787. B(a) Interstate Commerce Commission: Act of June 18, 1910, c. 309, § 1, 36 Stat. 539; see Interstate Commerce Comm. v. Louisville & Nashville R. Co., 227 U. S. 88, 92; United States v. Louisville & Nashville R. Co., 235 U. S. 314, 320, 321; Louisville & Nashville R. Co. v. United States, 245 U. S. 463, 466, and other cases collected in I. L. Sharfman, e< The Interstate Commerce Commission II,” pp. 384-393, 417 et seq.; Act of June 18, 1910, c. 309, § 13, 36 Stat. 539, 555; Act of March 1, 1913, c. 92, 37 Stat. 701, 703. See Tagg Bros. & Moorhead v. United States, 280 U. S. 420, 444n. (b) Federal Trade Commission: Act of September 26, 1914, c. 311, § 5, 38 Stat. 717, 719-20; see Federal Trade Comm. v. Curtis Publishing Co., 260 U. S. 568, 579, 580; Federal Trade Comm. v. Pacific States Paper Trade Assn., 273 U. S. 52, 63; Arkansas Wholesale Grocers’ Assn. v. Federal Trade Comm., 18 F. (2d) 866, 870, 871; Gregory Hankin, “ Conclusiveness of the Federal Trade Commission’s Findings as to Facts,” 23 Mich. L. Rev. 233, 262-67; Act of October 15, 1914, c. 323, § 11, 38 Stat. 730, 735 (applicable also in appropriate cases to Interstate Commerce Commission and Federal Reserve Board); see Federal Trade Comm. v. Curtis Publishing Co., supra; International Shoe Co. v. Federal Trade Comm., 280 U. S. 291, 297. (c) Federal Power Commission: Act of June 10, 1920, c. 285, § 20, 41 Stat. 1063, 1074. (d) United States Shipping Board: Act of September 7, 1916, c. 451, §§ 29, 31, 39 Stat. 728, 737, 738; see Isthmian Steamship Co. v. CROWELL v. BENSON. 71 22 Brandeis, J., dissenting. The safeguards with which Congress has surrounded the proceedings before the deputy commissioner would be without meaning if those proceedings were to serve merely as an inquiry preliminary to a contest in the courts.8 Specific provisions of the Longshoremen’s Act make clear that it was the aim of Congress to expedite the relief afforded. With a view to obviating the delays incident to judicial proceedings the Act substitutes an administrative tribunal for the court; and, besides providing for notice and opportunity to be heard, endows the proceedings before the deputy commissioner with the customary incidents of a judicial hearing. It prescribes that the parties in interest may be represented by counsel, § 19 (d); that the attendance of witnesses and the United States (S. D. N. Y.), 53 F. (2d) 251; compare U. S. Navigation Co. v. Cunard S. S. Co., 284 U. S. 474. (e) Secretary of Agriculture: Act of August 15, 1921, c. 64, §§ 315, 316, 42 Stat. 159, 168; see Tagg Bros. & Moorhead v. United States, 280 U. S. 420, 443, 444; Stafford v. Wallace, 258 U. S. 495, 512; Act of August 15, 1921, c. 64, § 204, 42 Stat. 159, 162; Act of June 10, 1930, c. 436, §§ 10, 11, 46 Stat. 531, 535. (f) Board of Tax Appeals: Act of February 26, 1926, c. 27, § 1003 (a), 44 Stat. 9, 110; see Phillips v. Commissioner, 283 U. S. 589, 600. (g) Grain Futures Commission: Act of September 21, 1922, c. 369, § 6 (b), 42 Stat. 998, 1002. (h) District of Columbia Rent Commission: Act of October 22, 1919, c. 80, Title II, § 108, 41 Stat. 297, 301; see Block v. Hirsh, 256 U. S. 135, 158; Killgore v. Zinkhan, 274 Fed. 140, 142. In instances in which Congress intended to permit the introduction of additional evidence in the district court it has so provided in express terms. See, e. g., Act of February 18, 1922, c. 57, § 2, 42 Stat. 388, 389. Compare the provision for review of reparation orders of the Interstate Commerce Commission, Act of June 18, 1910, c. 309, 313, 36 Stat. 539, 554, and of orders for the payment of money by the Shipping Board. Act of September 7, 1916, c. 451, § 30, 39 Stat. 728, 737. * Compare Freund, "Administrative Powers Over Persons and Property,” p. 279. 72 OCTOBER TERM, 1931. Brandeis, J., dissenting. 285U.S. production of documents may be compelled, § 27 (a); that the hearings shall be public, and that they shall be stenographically reported, § 23 (b); that there shall be made “ a record of the hearings and other proceedings before the deputy commissioners,” § 23 (b) ; “ that the deputy commissioner shall have full power and authority to hear and determine all questions in respect of ” a claim, § 19 (a) ; and that his order shall become final after 30 days, unless a proceeding is filed under § 21 (b) charging that it is “not in accordance with law.” Procedure of this character, instead of expediting relief, would entail useless expense and delay if the proceedings before the deputy commissioner were to be repeated in court, and the case tried from the beginning, at the option of either party. The conclusion that Congress did not so intend is confirmed by reference to the legislative history of the Act.7 Compare Camine tti v. United States, 242 U. S. 470, 490. 'Two bills providing workmen’s compensation for longshoremen and harbor workers were before the Congress at the same time. H. R. 9498, which was first reported favorably to the House, declared in terms, §§ 22, 24, that n the decision of the deputy commissioner shall be final as to all questions of fact and except as provided in section 24 as to all questions of law.” This bill was abandoned by the House in favor of S. 3170, in order that some legislation on the subject, under what was regarded as an emergency, might be passed at that session. H. D., 69th Cong., 1st Sess., ser. 16, pt. 2, pp. 139-141. Although the differences between the two bills were minutely examined in the hearings before the House Committee on the Judiciary, no reference was made to any change in the provisions for review of compensation orders; but on the contrary it was affirmatively stated that the Senate bill likewise enacted administrative finality upon questions of fact. Id., pt. 2, p. 200. The same statement was made in the Senate hearings. Id., pt. 1, pp. 53, 66. The bill was reported to the House as having been amended to “ conform substantially ” to the bill theretofore reported. H. Rep., No. 1767, 69th Cong., 1st Sess. Both in this report and in the brief debates in both houses, the bill was described as designed to prevent the delay and injustice incident CROWELL v. BENSON. 73 22 Brandeis, J., dissenting. Second. Nothing in the statute warrants the construction that the right to a trial de novo which Congress has concededly denied as to most issues of fact determined by the deputy commissioner has been granted in respect to the issue of the existence of the employer-employee relation. The language which is held sufficient to foreclose the right to such a trial on some issues forecloses it as to all. Whether the peculiar relation which the fact of employment is asserted to bear to the scheme of the statute and to the constitutional authority under which it was passed, might conceivably have induced Congress to provide a special method of review upon that question, it is not necessary to inquire. For Congress expressly declared its intention to put, for purposes of review, all the issues of fact on the same basis, by conferring upon the deputy commissioner “ full power to hear and determine all questions in respect of such claim,” subject only to the power of the court to set aside his order “ if not in accordance with law.” The suggestion that “ such claim ” may be construed to mean only a claim within the purview of the Act seems to me without substance. Logically applied, the suggestion would leave the deputy commissioner powerless to hear or determine any issue of asserted non-liability under the Act. For non-existence of the employer-employee relation is only one of many grounds of non-liability. Thus, there is no liability if the injury was occasioned solely by the intoxication of the employee; or if the injury was due to the wilful intention of the employee to to litigation, and as affording to maritime workers the same remedies as those provided in state workmen’s compensation laws. See 67 Cong. Rec. 10614; 68 Cong. Rec. 5410-5414, 5908. The state workmen’s compensation statutes have, almost universally, been construed to provide for final administrative determination of questions of fact, including the fact of the existence of an employment. See note 4, supra. 74 OCTOBER TERM, 1931. Brandeis, J., dissenting. 285 U.S. injure or kill himself or another; or if it did not arise “ out of or in the course of employment ”; or if the employer was not engaged in maritime employment in whole or in part; or if the injured person was the employee of a subcontractor who has secured payment of compensation; or if the proceeding is brought against the wrong person as employer; or if the disability or death is that of a master or a member of the crew of any vessel; or if it is that of a person engaged by the master to load or unload or repair any small vessel under eighteen tons net; or if it is that of an officer or employee of the United States or any agency thereof; or if it is that of an officer or employee of any State, or foreign government, or any political subdivision thereof; or if recovery for the disability or death through workmen’s compensation proceedings may be validly provided by state law. And obviously there is no liability if there was in fact neither disability nor death. It is not reasonable to suppose that Congress intended to set up a fact-finding tribunal of first instance, shorn of power to find a portion of the facts required for any decision of the case; or that in enacting legislation designed to withdraw from litigation the great bulk of maritime accidents, it contemplated a procedure whereby the same facts must be twice litigated before a longshoreman could be assured the benefits of compensation. The circumstance that Congress provided, in § 21 (b), for review of orders of the deputy commissioner by injunction proceedings is urged as indicative of an intention that in such proceedings the complainant should have full opportunity to plead and prove any facts showing that the case lay outside the purview of the statute. But by this reasoning, again, many other questions besides those referred to by the Court would be open to retrial upon new, and different, evidence. The simple answer is that on bills in equity to set aside orders of a federal CROWELL v. BENSON. 75 22 Brandeis, J., dissenting. administrative board there is no trial de novo of issues of fact determined by that tribunal. As stated in Tagg Bros, de Moorhead v. United States, 280 U. S. 420, 443, concerning orders of the Secretary of Agriculture under the Packers and Stockyards Act: “A proceeding under § 316 of the Packers and Stock-yards Act is a judicial review, not a trial de novo. The validity of an order of the Secretary, like that of an order of the Interstate Commerce Commission, must be determined upon the record of the proceedings before him— save as there may be an exception of issues presenting claims of constitutional right, a matter which need not be considered or decided now.” 8 In the review of the quasi-judicial decisions of these federal administrative tribunals the bill in equity serves the purpose which at common law, and under the practice of many of the States, is performed by writs of certiorari.9 It presents to the reviewing court the record of the proceedings before the administrative tribunal in order that determination may be made, among other things, whether the authority conferred has been properly exercised.10 Neither upon bill in equity in the fed- 8 Congress has incorporated by reference the provisions for review of orders of the Interstate Commerce Commission in authorizing judicial review of certain orders of the Federal Power Commission and the Shipping Board, as it did in the Packers and Stockyards Act. See note 5, supra. 9 In People ex rel. New York & Queens Gas Co. v. McCall, 219 N. Y. 84, 88, 90; 113 N. E. 795, it was held that the scope of the review on certiorari of an order of the Public Service Commission was the same as that of the federal court on bill in equity of the orders of the Interstate Commerce Commission as declared in Interstate Commerce Comm. v. Illinois Central R. Co., 215 U. S. 452, 470. Compare Vanfleet, “ Collateral Attack on Judicial Proceedings,” §§ 2, 3. 10 Certiorari is the historic writ for determining whether the action of an inferior tribunal has been taken within its jurisdiction; and it has sometimes been held that the writ lies only to determine this 76 OCTOBER TERM, 1931. Brandeis, J., dissenting 285U.S. eral courts nor writ of certiorari in the States is it the practice to permit fresh evidence to be offered in the reviewing court. There is no foundation for the suggestion that Congress intended to provide otherwise in the Longshoremen’s Act. Third. It is said that the provision for a trial de novo of the existence of the employer-employee relation should be read into the Act in order to avoid a serious constitutional doubt. It is true that where a statute is equally susceptible of two constructions, under one of which it is clearly valid and under the other of which it may be unconstitutional, the court will adopt the former construction. Presser v. Illinois, 116 U. S. 252, 269; Knights Templars’ Indemnity Co. v. Jarman, 187 U. S. 197, 205; Carey v. South Dakota, 250 U. S. 118, 122; Missouri Pacific R. Co. v. Boone, 270 U. S. 466, 471, 472. But this Act is not equally susceptible to two constructions. The court may not, in order to avoid holding a statute unconstitutional, engraft upon it an exception or other provision. Butts v. Merchants & Miners Transportation Co., 230 U. S. 126, 133; The Employers’ Liability Cases, 207 U. S. 463, 500-502; Trade-Mark Cases, 100 U. S. 82, 99; United States n. Fox, 95 U. S. 670, 672, 673; United States question. Compare Jackson v. People, 9 Mich. 111. But, although there is considerable divergence in the practice of the various States as to the scope of the review, the proceeding, apart from extraordinary statutory provisions, is universally upon the record and the evidence before the inferior tribunal, and not a trial de novo. Fore v. Fore, 44 Ala. 478, 484; Los Angeles v. Young, 118 Cal. 295, 298; 50 Pac. 534; Great Western Power Co. v. Pillsbury, 170 Cal. 180, 185, 186; 149 Pac. 35; Uphoff v. Industrial Board, 271 Ill. 312; 111 N. E. 128; Tledt v. Carstensen, 61 Iowa 334, 336; 16 N. W. 214; Lord v. County Commissioners, 105 Maine 556, 561; 75 Atl. 126; Jackson v. People, 9 Mich. Ill, 119,120; Wait v. Krewson, 59 N. J. L. 71, 75; 35 Atl. 742; Milwaukee Western Fuel Co. v. Industrial Commission, 159 Wis. 635, 641, 642; 150 N. W. 998. It was so at common law. See Freund, “Administrative Powers Over Persons and Property,” pp. 267-269. CROWELL v. BENSON. 77 22 Brandeis, J., dissenting. v. Reese, 92 U. S. 214, 221. Compare Illinois Central R. Co. v. McKendree, 203 U. S. 514, 529; Celia Commission Co. v. Bohlinger, 147 Fed. 419, 423, 424. Neither may it do so to avoid having to resolve a constitutional doubt. To hold that Congress conferred the right to a trial de novo on the issue of the employer-employee relation seems to me a remaking of the statute and not a construction of it., Fourth. Trial de novo of the issue of the existence of the employer-employee relation is not required by the due process clause. That clause ordinarily does not even require that parties shall be permitted to have a judicial tribunal pass upon the weight of the evidence introduced before the administrative body. See Dahlstrom Metallic Door Co. v. Industrial Board, 284 U. S. 594. The findings of fact of the deputy commissioner, the Court now decides, are conclusive as to most issues, if supported by evidence. Yet as to the issue of employment the Court holds not only that such findings may not be declared final, but that it would create a serious constitutional doubt to construe the Act as committing to the deputy commissioner the simple function of collecting the evidence upon which the court will ultimately decide the issue. It is suggested that this exception is required as to issues of fact involving claims of constitutional right. For reasons which I shall later discuss, I cannot believe that the issue of employment is one of constitutional right. But even assuming it to be so, the conclusion does not follow that the trial of the issue must therefore be upon a record made in the district court. That the function of collecting evidence may be committed to an administrative tribunal is settled by a host of cases,11 and “See the statutes and cases cited in note 5, supra. Similar decisions have been repeatedly made, under the Fourteenth Amendment, in cases coming from the state courts. This Court has recently decided that a state workmen’s compensation act may validly provide 78 OCTOBER TERM, 1931. Brandeis, J., dissenting. 285 U.S. supported by persuasive analogies, none of which justify a distinction between issues of constitutional right and any others. Resort to administrative remedies may be made a condition precedent to a judicial hearing. Northern Pacific Ry. Co. v. Solum, 247 U. S. 477, 483, 484; First National Bank n. County Commissioners, 264 U. S. 450, 454, 455; United States Navigation Co. v. Cunard S. S. Co., 284 U. S. 474. This is so even though a party is asserting deprivation of rights secured by the Federal Constitution. First National Bank v. County Commissioners, supra. In federal equity suits, the taking of evidence on any issue in open court did not become common until 1913,12 compare Los Angeles Brush Mfg. for judicial review upon matters of law only. Dahlstrom Metallic Door Co. n. Industrial Board, 284 U. S. 594. See also New York Central R. R. Co. v. White, 243 U. S. 188, 207, 208. In Missouri ex rel. Hurwitz v. North, 271 U. S. 40, 42, it was held that a state board of health might be empowered, upon reasonable notice, specification of charges and opportunity to be heard, to revoke a physician’s license, subject only to review in the courts upon certiorari. In Washington ex rel. Oregon Railroad & Navigation Co. v. Fairchild, 224 U. S. 510, 527, a statute was upheld which confined the court upon review of a public service commission’s order to the evidence introduced before the commission. See also Wadley Southern Ry. Co. v. Georgia, 235 U. S. 651, 661; New York ex rel. New York & Queens Gas Co. v. McCall, 245 U. S. 345, 348, 349; Napa Valley Electric Co. v. Railroad Commission, 251 U. S. 366, 370; Northern Pacific Ry. Co. v. Department of Public Works, 268 U. S. 39, 42. In Long Island Water Supply Co. v. Brooklyn, 166 U. S. 685, 695, it was held that the findings of fact by commissioners in assessing damages in condemnation proceedings might be made final, leaving open to the court only the question whether there was any error in the basis of appraisal, or otherwise. See also Crane v. Hahlo, 258 U. S. 142, 147; Hardware Dealers Mu-tual Fire Insurance Co. v. Glidden Co., 284 U. S. 151. Compare Pacific Live Stock Co. n. Lewis, 241 U. S. 440, 451, 452. 12 See Griswold and Mitchell, “ The Narrative Record in Federal Equity Appeals,” 42 Harv. L. Rev. 483, 488, 491; Lane, “ One Year Under the New Federal Equity Rules,” 27 Harv. L. Rev. 629, 639. Compare 2 Daniell, “ Chancery Practice,” 2d ed., 1045-46, 1053-54, 1069 et seg. CROWELL v. BENSON. 79 22 Brandeis, J., dissenting. Corp. v. James, 272 U. S. 701; and in admiralty it was not required by the Rules of this Court until 1921.13 Compare The P. R. R. No. 35, 48 F. (2d) 122. On appeals in admiralty, further proof is now taken by a commission.14 As was said concerning a similar tribunal in Washington ex rel. Oregon Railroad & Navigation Co. v. Fairchild, 224 U. S. 510, 527, the function of the deputy commissioner is like that of a master in chancery who has been required to take testimony and report his findings of fact and conclusions of law. Compare Los Angeles Brush Corp. v. James, supra; Kimberly n. Arms, 129 U. S. 512, 524, 525; Armstrong v. Belding Bros. & Co., 297 Fed. 728, 729. The holding that the difference between the procedure prescribed by the Longshoremen’s Act and these historic methods of hearing evidence transcends the limits of congressional power when applied to the issue of the existence of a relation of employment, as distinguished from that of the circumstances of an injury or the existence of a relation of dependency, seems to me without foundation in reality. Certainly, there is no difference to the litigant. 13Admiralty Rule 46, 254 U. S. 698. Subsequent to 1842, when the procedure in admiralty became subject to rules promulgated by this Court, and prior to 1921, no rule specifically required that evidence be taken orally in open court, and the practice in some districts appears to have been to take proofs by a commission. Compare Admiralty Rules 44, 46, 210 U. S. 558; The Guy C. Goss, 53 Fed. 826, 827; The Wavelet, 25 Fed. 733, 734. See also The Sun, 271 Fed. 953, 954. Under the present rules the district court may still, upon proper circumstances, refer causes in admiralty to a commissioner, without the consent of the parties, to hear the testimony and report conclusions on issues of fact and law. The P. R. R. No. 35, 48 F. (2d) 122; Sorenson & Co. v. Liverpool, Brazil & River Plate Steam Nav. Co., 47 F. (2d) 332. Compare The City of Washington, 92 U. S. 31, 39; Los Angeles Brush Mfg. Corp. v. James, 272 U. S. 701. The commissioner’s findings of fact are not disturbed unless clearly erroneous. La Bourgogne, 144 Fed. 781, 783, aff’d, 210 U. 8. 95; Anderson v. Alaska S. S. Co., 22 F. (2d) 532, 535. 14 See Admiralty Rule 45, 254 U. S. 698; Rule 15, 275 U. S. 607. 80 OCTOBER TERM, 1931. Brandeis, J., dissenting. 285 US. Even in respect to the question, discussed by the Court, of the finality to be accorded administrative findings of fact in a civil case involving pecuniary liability, I see no reason for making special exception as to issues of constitutional right, unless it be that under certain circumstances, there may arise difficulty in reaching conclusions of law without consideration of the evidence as well as the findings of fact. See Tagg Bros. & Moorhead v. United States, 280 U. S. 420, 443. Compare Ohio Valley Water Co. v. Ben Avon Borough, 253 U. S. 287. The adequacy of that reason need not be discussed. For as to the issue of employment no such difficulty can be urged. Two decades of experience in the States testify to the appropriateness of the administrative process as applied to this issue, as well as all others, in workmen’s compensation controversies. Fifth. Trial de novo of the existence of the employeremployee relation is not required by the Judiciary Article of the Constitution. The mere fact that the Act deals only with injuries arising on navigable waters, and that independently of legislation such injuries can be redressed only in courts of admiralty,15 obviously does not preclude Congress from denying a trial de novo. For the Court holds that it is compatible with the grant of power under Article III to deny a trial de novo as to most of the facts “The decision of the District Court, acquiesced in by the Circuit Court of Appeals and this Court, that the remedy under § 21 (b) of the Longshoremen’s Act is in admiralty seems to me unfounded. The provision in that section for suspending or setting aside a compensation order by injunction clearly implies a proceeding upon bill in equity. Congress may authorize actions for maritime torts to be brought on the law side of the federal district courts, Panama R. Co. v. Johnson, 264 U. S. 375, 385; or in the state courts, Engel v. Davenport, 271 U. S. 33, 37. See also Chelentis v. Luckenbach S. S. Co., 247 U. S. 372, 384. No constitutional objection can exist, therefore, to giving effect to the remedy in equity provided in this Act. CROWELL v. BENSON. 81 22 Brandeis, J., dissenting. upon which rest the allowance of a claim and the amount of compensation. Its holding that the Constitution requires a trial de novo of the issue of the employeremployee relation is based on the relation which that fact bears to the statutory scheme propounded by Congress, and to the constitutional authority under which the Act was passed. The argument is that existence of the relation of employer and employee is, as a matter of substantive law, indispensable to the application of the statute, because the power of Congress to enact the legislation turns upon its existence; and that whenever the question of constitutional power depends upon an issue of fact that issue must, as a matter of procedure, be determinable independently upon evidence freshly introduced in a court.16 Neither proposition seems to me well founded. Whether the power of Congress to provide compensation for injuries occurring on navigable waters is limited to cases in which the employer-employee relation exists has not heretofore been passed upon by this Court and was not argued in this case. I see no justification for assuming, under those circumstances, that it is so limited. “The opinion of the Court suggests that, upon similar reasoning, the issue whether the injury occurred on navigable waters must likewise be open to independent redetermination, upon the facts as well as the law, in the district court. The question whether any peculiar significance attaches to such a controversy, entitling it to be twice tried, is not before us. It has never been decided that the power of Congress to provide compensation for injuries to workmen received in the course of maritime employment depends upon the injury having occurred upon navigable waters. See Benedict, “ The American Admiralty,” 5th ed., § 25. Compare Soper v. Hammond Lumber Co., 4 F. (2d) 872; State Industrial Commission v. Nordenholt Corp., 259 U. S. 263. The Longshoremen’s Act undertakes to cover only the field of admiralty jurisdiction within which the decisions of this Court have held uniformity to be required. See Stanley Morrison, “ Workmen’s Compensation and the Maritime Law,” 38 Yale L. J. 472, 500. 137818°—32-6 82 OCTOBER TERM, 1931. Brandeis, J., dissenting. 285U.S. Without doubt the word “ employee ” was used in the Longshoremen’s Act in the sense in which the common law defines it. But that definition is not immutable; and no provision of the Constitution confines the application of liability without fault to instances where the relation of employment, as so defined, exists.17 Compare Louis Pisitz Dry Goods Co. v. Yeldell, 274 U. S. 112, 116. Whether an individual is an employee or an independent contractor, depends upon criteria often subtle and uncertain of application,18 criteria which have been developed by proc- " That legislatures may abolish defenses recognized at common law and create new causes of action not so recognized is beyond question. So also is the power, under proper circumstances, to provide for liability without fault. Compare St. Louis & San Francisco Ry. Co. v. Mathews, 165 U. S. 1; Chicago, Rock Island & Pacific Ry. Co. v. Zernecke, 183 U. S. 582; St. Louis, Iron Mountain & Southern Ry. Co. v. Taylor, 210 U. S. 281; New York Central R. Co. v. White, 243 U. S. 188. Congress may provide that a carrier shall be liable for loss or damage to goods occurring beyond its own lines. Atlantic Coast Line R. Co. v. Riverside Mills, 219 U. S. 186, 203. See also Atlantic Coast Line R. Co. v. Glenn, 239 U. S. 388, 393. “ The rule,” said the Court, “is adapted to secure the rights of the shipper by securing unity of transportation with unity of responsibility.” That Congress might not similarly secure unity of responsibility for injuries to all persons working upon the same enterprise, irrespective of the particular relation existing of contract or employment, is not to be assumed without argument and in the absence of circumstances presenting the question. The logic upon which workmen’s compensation acts have been sustained does not require insistence upon a technical master and servant relation. Compare Ward & Gow v. Krinsky, 259 U. S. 503. See also Jeremiah Smith, “ Sequel to Workmen’s Compensation Acts,” 27 Harv. L. Rev. 235, 344. The common law, of course, holds many examples of liability to third persons for injury sustained at the hands of an independent contractor or his servant, e. g., Ellis v. Sheffield Co., 2 E. & B. 767; Pickard v. Smith, 10 C. B. (n. s.) 470; Doll v. Ribetti, 203 Fed 593. 18 See the analysis and criticism in William O. Douglas, “ Vicarious Liability and Administration of Risk,” 38 Yale L. J. 584, 594r-604. Compare O. W. Holmes, “Agency,” 5 Harv. L. Rev. 1, 14-16, CROWELL v. BENSON. 83 22 Brandeis, J., dissenting. esses of judicial exclusion and inclusion, largely since the adoption of the Constitution18 19 and with reference, for the most part, to considerations foreign to industrial accident litigation. It is not to be assumed that Congress, having power to amend and revise the maritime law, is prevented from modifying those criteria and enlarging the liability imposed by this Act so as to embrace all persons who are engaged or engage themselves in the work of another, including those now designated as independent contractors. In the Longshoremen’s Act itself, Congress, far from declaring the relation of master and servant indispensable in all cases to the application of the statute, provided expressly that a contractor shall be liable to employees of a subcontractor who has failed to secure payment of compensation. § 4 (a). State workmen’s compensation laws almost invariably contain provisions for liability either to independent contractors or to their employees, sometimes absolute and sometimes conditioned upon default by the immediate employer;20 and these pro- 18 See Baty, “ Vicarious Liability,” passim; Francis Bowes Sayre, “ Criminal Responsibility for Acts of Another,” 43 Harv. L. Rev. 689, 691-694; O. W. Holmes, “Agency,” 4 Harv. L. Rev. 345, 5 id. 1. The first text-book on Agency did not appear until 1812. Paley, “ The Law of Principal and Agent.” 20 See the digests of the statutes in L. V. Hill and Ralph H. Wilkin, “ Workmen’s Compensation Statute Law ”; and F. Robertson Jones, “ Digest of Workmen’s Compensation Laws ” (10th ed.). The provision in the New York Workmen’s Compensation Act, § 56, is illustrative: “A contractor, the subject of whose contract is, involves or includes a hazardous employment, who subcontracts all or any part of such contract shall be liable for and shall pay compensation to any employee injured. . . .” In 1927, in recommending the extension of this provision to include owners or lessees as well as general contractors, the State Industrial Commissioner said: “ From the point of view of making sure of compensation to injured workers, all the reasons for the existing obligations put upon a general contractor for a piece of building work who sublets part of the work, are equally cogent for doing the same in case of an owner or lessee of premises 84 OCTOBER TERM, 1931. Brandeis, J., dissenting. 285 U.S. visions appear to have been uniformly upheld.21 I cannot doubt that, even upon the view of the evidence taken by the District Court, Congress might have made Benson liable to Knudsen for the injury which he sustained. Sixth. Even if the constitutional power of Congress to provide compensation is limited to cases in which the who lets part of building work in precisely the same way. The practical need for doing it has been shown by experience to be extensive owing to the large amount of building work now being done under the method above noted and which this amendment is designed to cover. “ The existing provision has proven very beneficial in the case of contractors, and it will be equally useful in the case of the type of owner-contractor, so to speak, who must now be dealt with for solution of the same problem.” Annual Report of the Industrial Commissioner (1927), pp. 4, 5. 21 See, e. g., Industrial Commission v. Continental Investment Co., 78 Colo. 398, 401, 402; 242 Pac. 49; Palumbo v. George A. Fuller Co., 99 Conn. 355, 358; 122 Atl. 63; Fisk v. Bonner Tie Co., 40 Idaho 304, 308; 232 Pac. 569; Parker-Washington Co. v. Industrial Board, 274 Ill. 498, 504; 113 N. E. 976; American Steel Foundries v. Industrial Board, 284 Ill. 99, 103; 119 N. E. 902; McDowell v. Drier, 78 Ind. App. 440, 444, 445; 133 N. E. 839; Burt v. Clay, 207 Ky. 278, 281; 269 S. W. 322; Seabury v. Arkansas Natural Gas Corp., 171 La. 199, 204, 205; 130 So. 1; White v. George B. H. Macomber Co., 244 Mass. 195, 198; 138 N. E. 239; Burt v. Munising Woodenware Co., 222 Mich. 699, 702, 703; 193 N. W. 895; De Lonjay v. Hartford Accident & Indemnity Co., 35 S. W. (2d) 911, 912 (Mo.); Sherlock v. Sherlock, 112 Neb. 797, 799; 201 N. W. 645; O’Banner v. Pendlebury, 107 N. J. L. 245, 247; 153 Atl. 494; Clark v. Monarch Engineering Co., 248 N. Y. 107, 110; 161 N. E. 436; De Witt v. State, 108 Ohio St. 513, 522-525; 141 N. E. 551; Green v. Industrial Commission, 121 Okla. 211, 212; 249 Pac. 933; Qualp v. James Stewart Co., 266 Pa. 502; 109 Atl. 780; Murray v. Wasatch Grading Co., 73 Utah 430, 436, 439 ; 274 Pac. 940; Threshermen’s Nat. Ins. Co. v. Industrial Commission, 201 Wis. 303, 306; 230 N. W. 67; Wisinger v. White Oil Corp., 24 F. (2d) 101, 102. But compare Flickenger v. Accident Commission, 181 Cal. 425, 432, 433; 184 Pac. 851. Liability to pay compensation obtains in England under circumstances in which no relation of employment exists. See Mulrooney v. Todd (1909), 1 K. B. 165; Marks v. Carne (1909), 2 K. B. 516. CROWELL v. BENSON. 85 22 Brandeis, J., dissenting. employer-employee relation exists, I see no basis for a contention that the denial of the right to a trial de novo upon the issue of employment is in any manner subversive of the independence of the federal judicial power. Nothing in the Constitution, or in any prior decision of this Court to which attention has been called, lends support to the doctrine that a judicial finding of any fact involved in any civil proceeding to enforce a pecuniary liability may not be made upon evidence introduced before a properly constituted administrative tribunal, or that a determination so made may not be deemed an independent judicial determination. Congress has repeatedly exercised authority to confer upon the tribunals which it creates, be they administrative bodies or courts of limited jurisdiction, the power to receive evidence concerning the facts upon which the exercise of federal power must be predicated, and to determine whether those facts exist. The power of Congress to provide by legislation for liability under certain circumstances subsumes the power to provide for the determination of the existence of those circumstances. It does not depend upon the absolute existence in reality of any fact. It is true that, so far as Knudsen is concerned, proof of the existence of the employer-employee relation is essential to recovery under the Act. But under the definition laid down in Noble v. Union River Logging Co., 147 U. S. 165, 173, 174, that fact is not jurisdictional. It is Qizosi-jurisdictional. The existence of a relation of employment is a question going to the applicability of the substantive law, not to the jurisdiction of the tribunal. Jurisdiction is the power to adjudicate between the parties concerning the subject-matter. Compare Reynolds v. Stockton, 140 U. S. 254, 268. Obviously, the deputy commissioner had not only the power but the duty to determine whether the employer-employee relation existed. When a duly constituted tribunal has juris- 86 OCTOBER TERM, 1931. Brandeis, J., dissenting. 285 U.S. diction of the parties and of the subject-matter, that jurisdiction is not impaired by errors, however grave, in applying the substantive law. Dennison v. Payne, 293 Fed. 333, 341. Compare Chicago, Rock Island & Pacific Ry. Co. v. Schendel, 270 U. S. 611, 617; Marin v. Auge-dahl, 247 U. S. 142, 149; Binderup v. Pathe Exchange, 263 U. S. 291, 305-307. This is true of tribunals of special as well as of those of general jurisdiction. It is true of administrative, as well as of judicial tribunals. If errors in the application of law may not be made the basis of collateral attack upon the decision of an administrative tribunal, once that decision has become final, no “ jurisdictional ” defect can compel the independent reexamination in court, upon direct review, of the facts affecting such applicability. The “ judicial power ” of Article III of the Constitution is the power of the federal government, and not of any inferior tribunal. There is in that Article nothing which requires any controversy to be determined as of first instance in the federal district courts. The jurisdiction of those courts is subject to the control of Congress.22 Mat- 22 Turner v. Bank of North America, 4 Dall. 8, 10; United States v. Hudson & Goodwin, 7 Cranch 32, 33; Shelden v. Sill, 8 How. 441, 449; Justices v. Murray, 9 Wall. 274, 280; Insurance Co. v. Dunn, 19 Wall. 214, 226; Stevenson v. Fain, 195 U. S. 165, 167; Kline v. Burke Construction Co., 260 U. S. 226, 234. It was not until the Act of March 3, 1875, c. 137, 18 Stat. 470, that Congress extended the jurisdiction of the circuit courts to “ cases arising under the laws of the United States,” thus permitting to be exercised “ the vast range of power which had lain dormant in the Constitution since 1789.” See Felix Frankfurter and James M. Landis, “The Business of the Supreme Court,” pp. 65-68; Charles Warren, “Federal Criminal Laws and the State Courts,” 38 Harv. L. Rev. 545. Large areas of the potential jurisdiction of the lower federal courts are now occupied by other tribunals. As to legislative courts, see Wilber Griffith Katz, “ Federal Legislative Courts,” 43 Harv. L. Rev. 894. Congress has repeatedly exercised power to exclude from the federal courts cases not involving the requisite jurisdictional amount. Cases aris CROWELL v. BENSON. 87 22 Brandeis, J., dissenting. ters which may be placed within their jurisdiction may instead be committed to the state courts. If there be any controversy to which the judicial power extends that may not be subjected to the conclusive determination of administrative bodies or federal legislative courts, it is not because of any prohibition against the diminution of the jurisdiction of the federal district courts as such, but because, under certain circumstances, the constitutional requirement of due process is a requirement of judicial process. An accumulation of precedents, already referred to,* 23 has established that in civil proceedings fil- ing under the Federal Employers’ Liability Act are triable in either the state courts or the federal district courts. See Second Employers’ Liability Cases, 223 U. S. 1, 56, 57-59; Douglass v. New York, New Haven & Hartford R. Co., 279 U. S. 377. So also cases under § 20 of the Seamen’s Act, as amended by the Merchant Marine Act of 1920, § 33. Engel v. Davenport, 271 U. S. 33, 37; Panama R. Co. v. Vasquez, 271 U. S. 557, 562. 23 See decisions and statutes, collected in note 5, supra. So far as concerns the question here presented, it is immaterial whether the controversy is wholly between private parties or is between the Government and a citizen. The fact that litigation under the Longshoremen’s Act is, in substance, between private parties (even though under § 21 (b) the deputy commissioner is the only necessary party respondent) does not warrant the inference that the administrative features of the Act present a question not heretofore decided. The tribunals listed in note 5, supra, deal with matters outside the scope of the doctrine recently examined in Ex parte Bakelite Corporation, 279 U. S. 438. While the opinion in that case referred to “various matters arising between the government and others” as appropriate for the cognizance of legislative courts, the reference was restricted to matters “ which from their nature do not require judicial determination and yet are susceptible to it,” the mode of determining which “is completely within congressional control.” Ibid, at 451. The suggestion that due process does not require judicial process in any controversy to which the government is a party would involve a revision of historic conceptions of the nature of the federal judicial system. That all questions arising in the administration of the Interstate Commerce Act, for example, or between a taxpayer and the government under the tax laws, could be committed by Congress 88 OCTOBER TERM, 1931. Brandeis, J., dissenting. 285 U.S. volving property rights determination of facts may constitutionally be made otherwise than judicially; and necessarily that evidence as to such facts may be taken outside of a court. I do not conceive that Article III has properly any bearing upon the question presented in this case. Seventh. The cases cited by the Court in support of its conclusion that the statute would be invalid if construed to deny a trial de novo of issues of fact affecting the existence of the employer-employee relation seem to me irrelevant. Most of those decisions dealt with tribunals exercising functions generically different from the function which Congress has assigned, to the deputy commissioners under the Longshoremen’s Act, and no question arose analogous to that now presented. By the Longshoremen’s Act, Congress created fact-finding and fact-gathering tribunals, supplementing the courts and entrusted with power to make initial determinations in matters within, and not outside, ordinary judicial purview. The purpose of these administrative bodies is to withdraw from the courts, subject to the power of judicial review, a class of controversies which experience has shown can be more effectively and expeditiously handled in the first instance by a special and expert tribunal. The proceedings of the deputy commissioners are endowed with every substantial safeguard of a judicial hearing. Their conclusions are, as a matter of right, open to reexamination in the courts on all questions of law; and, we assume for the purposes of this discussion, may be open even on all questions of the weight of the evidence. The administrative bodies in the cases referred to by the Court, on the contrary, are in no sense fact-gathering exclusively to executive officers, in respect to issues of law as well as of fact, has never been supposed. Thus there is no indication in the opinion in Ex parte Bakelite Corporation that the Commerce Court was a legislative court, although instances of the creation of such courts were considered in detail. See Wilber Griffith Katz, “Federal Legislative Courts,” 43 Harv. L. Rev. 894, 914, 915. CROWELL v. BENSON. 89 22 Brandeis, J., dissenting. or fact-finding tribunals of first instance. They are tribunals of final resort within the scope of their authority. Their concern is with matters ordinarily outside of judicial competence,—the deportation of aliens, the enforcement of military discipline, the granting of land patents, and the use of the mails,—matters which are within the power of Congress to commit to conclusive executive determination. Compare Ex parte Bakelite Corp, 279 U. S. 438,451. Their procedure may be summary and frequently is.24 With respect to them, the function of the courts is not one of review but essentially of control—the function of keeping them within their statutory authority.25 24 Compare Miller v. Horton, 152 Mass. 540; 26 N. E. 100, and Pearson v. Zehr, 138 Ill. 48; 29 N. E. 854, cited by the Court. These cases involved summary administrative action, and the complaining individuals had been given no opportunity to be heard on the question whether their property was in fact subject to the destruction ordered. The degree of finality appropriate in administrative action must always depend upon the character of the administrative hearing provided. Compare Dickinson, "Administrative Justice and the Supremacy of Law,” pp. 260-261; E. F. Albertsworth, "Judicial Review of Administrative Action by the Federal Supreme Court,” 35 Harv. L. Rev. 127, 152, 153. In most States, the tendency appears to be to deny the right, in a tort action against an administrative officer, to question the existence of the fact justifying his act, if a hearing was provided or if a suit for injunction could have been brought. See Freund, "Administrative Powers Over Persons and Property,” pp. 248-252; Kirk v. Board of Health, 83 S. C. 372, 383; 65 S. E. 387. Compare North American Cold Storage Co. v. Chicago, 211 U. S. 306, 316, 317. In cases arising under the Workmen’s Compensation Laws, where formal hearing is available, the Massachusetts and Illinois courts, in common with many others, have held the administrative finding of the fact of employment conclusive. Churchill’s Case, 265 Mass. 117; 164 N. E. 68; Hill’s Case, 268 Mass. 491; 167 N. E. 914; Cinofsky'v. Industrial Commission, 290 Ill. 521; 125 N. E. 286; Franklin Coal Co. v. Industrial Commission, 296 Ill. 329; 129 N. E. 811. “Compare Frankfurter and Davison, “Cases on Administrative Law,” Preface, p. viii. See Albert Levitt, " The Judicial Review of Executive Acts,” 23 Mich. L. Rev. 588, 595 et seq. This authority 90 OCTOBER TERM, 1931. Brandeis, J., dissenting. 285 U.S. No method of judicial review of the administrative action had been provided by Congress in any of the cases cited; and the question of the power to confine review to the administrative record accordingly did not arise. In each case, the Court held that if the administrative officer had acted outside his authority, the unwritten law supplied a remedy, and that relief could be had, according to the nature of the case, on bill in equity or habeas corpus.* 28 may embrace as well the determination of questions of law as of fact, depending upon the judicial construction given to the authority of the tribunal. Thus in In re Grimley, In re Morrissey, Noble v. Union River Logging Co., Smith v. Hitchcock, and Bates & Guild Co. v. Payne, all cited in note 26, infra, the Court recognized the conclusiveness of many decisions of law by the tribunals in question. Tribunals of this character are of course empowered, under ordinary circumstances, to make conclusive determinations of fact. See e. g., Passa-vant v. United States, 148 U. S. 214, 219; Medbury v. United States, 173 U. S. 492, 497, 498; Silberschein v. United States, 266 U. S. 221, 225; Quon Quon Poy v. Johnson, 273 U. S. 352, 358. 28(a) In Ng Fung Ho v. White, 259 U. S. 276, the statute authorized the deportation only of aliens, without provision for judicial review of the executive order. Act of February 5, 1917, c. 29, § 19, 39 Stat. 874, 889. Upon application for a writ of habeas corpus, by a person arrested who claimed to be a citizen, it was held that he was entitled to a judicial determination of that claim. No question arose as to whether Congress might validly have provided for review exclusively upon the record made in the executive department; nor as to the scope of review which might have been permissible upon such record. (b) In re Grimley, 137 U. S. 147, and In re Morrissey, 137 U. S. 157, deal with the action of military tribunals. Military tribunals form a system of courts separate from the civil courts and created by virtue of an independent grant of power in the Constitution. Art. I, § 8, cl. 14, 16. They have authority to determine finally any case over which they have jurisdiction; “ and their proceedings . . . are not open to review by the civil tribunals, except for the purpose of ascertaining whether the military court had jurisdiction of the person and subject-matter, and whether, though having such jurisdiction, it had exceeded its powers in the sentence pronounced.” Carter v. Roberts, 177 U. S. 496, 498; Grafton v. United States, 206 U. S. 333, CROWELL v. BENSON. 91 22 Brandeis, J., dissenting. The question decided in each case was that Congress should not be taken, in the absence of specific provision, to have intended to subject the individual to the uncontrolled action of a public administrative officer. See American School of Magnetic Healing v. McAnnulty, 187 U. S. 94, 110. No comparable issue is presented here. Reliance is also placed, as illustrative of the necessary independence of the federal judicial power, upon the decision in Ohio Valley Water Co. v. Ben Avon Borough, 253 U. S. 287.* 27 That case, however, involved only the ques- 347. As Congress did not provide any method for review by the courts of the decision of military tribunals, all questions of law concerning military jurisdiction are open to independent determinaton in the civil courts; and the cases of In re Grimley and In re Morrissey, decide nothing more. Whether Congress could make the findings of “ jurisdictional facts ” of military tribunals conclusive upon civil courts is a question which appears never to have been raised. (c) In Noble v. Union River Logging Co., 147 U. 8. 165, 174, relief was granted by bill in equity to stay illegal and unauthorized action of the Secretary of the Interior in respect to the public lands, there being no method of judicial review prescribed by statute. Compare Smelting Co. v. Kemp, 104 U. S. 636, 641. (d) In Smith n. Hitchcock, 226 U. S. 53, 58, as in Bates & Guild Co. v. Payne, 194 U. S. 106, 109, 110, and American School of Magnetic Healing Co. v. McAnnulty, 187 U. S. 94, 109, bills in equity were entertained to review acts of the Postmaster General alleged to be unauthorized, Congress not having provided any method of judicial review. In each case the question involved was stated to be one of law. 27 The decision in the Ohio Valley Water Company Case has evoked extensive and varied comment. See, e. g., Curtis, “Judicial Review of Commission Rate Regulation—The Ohio Valley Case,” 34 Harv. L. Rev. 862; Albertsworth, “Judicial Review of Administrative Action by the Federal Supreme Court,” 35 Harv. L. Rev. 127; C. W. Pound, “ The Judicial Power,” 35 Harv. L. 787 ; Brown, “ The Functions of Courts and Commissions in Public Utility Rate Regulations,” 38 Harv. L. Rev. 141 ; Wiel, “Administrative Finality,” 38 Harv. L. Rev. 447; Buchanan, “ The Ohio Valley Water Company Case and the Valuation of Railroads,” 40 Harv. L. Rev. 1033; Beutel, “Valuation as a 92 OCTOBER TERM, 1931. Brandeis, J., dissenting. 285 U.S. tion of the scope of review, upon the administrative record, in confiscation cases. It held that the reviewing court must have power to weigh the evidence upon which the administrative tribunal entered the order. It decided nothing concerning the right to a trial de novo in court; and the opinion made no reference to such a trial. It could not have decided anything as to the effect of Article III of the Constitution. For the case came here from the highest court of the State, arose under the Fourteenth Amendment, and did not relate to the jurisdiction of the lower federal courts. Moreover, in no event can the issues presented in the review of rate orders alleged to be confiscatory, which involve difficult questions of mixed law and fact, be deemed parallel to those presented in the review of workmen’s compensation awards.* 28 Compare the issues in Ohio Valley Water Co. v. Ben Avon Borough, supra, with that in Dahlstrom Metallic Door Co. v. Industrial Board, 284 U. S. 594. Whatever may be the propriety of a rule permitting special reexamination in a trial court of so-called “ juris- Requirement of Due Process of Law in Rate Cases,” 43 Harv. L. Rev. 1249; Green, The Ohio Valley Water Case, 4 Ill. L. Q. 55; Freund, “ The Right to a Judicial Review in Rate Controversies,” 27 W. Va. L. Q. 207; Hardman, “ Judicial Review as a Requirement of Due Process in Rate Regulation,” 30 Yale L. J. 681; Isaacs, “ Judicial Review of Administrative Findings,” 30 Yale L. J. 781. No commentator, however, appears to have understood the decision as recognizing in any manner a right to trial de novo in court upon confiscation issues. 28 It is cause for regret that the Court in determining this controversy should have declared, obiter, that in matters of State public utility regulation involving administrative action of a special character, and raising questions under a different constitutional provision, a mode of procedure is required contrary to that almost universally established under State law (see David E. Lilienthal, “ The Federal Courts and State Regulation of Public Utilities,” 43 Harv. L. Rev. 379, 412, 413), and calculated seriously to embarrass the operation of the administrative method in that field. CROWELL v. BENSON. 93 22 Brandeis, J., dissenting. (fictional facts” passed upon by administrative bodies having otherwise final jurisdiction over matters properly committed to them, I find no warrant for extending the doctrine to other and different administrative tribunals whose very function is to hear evidence and make initial determinations concerning those matters which it is sought to reëxamine. Such a doctrine has never been applied to tribunals properly analogous to the deputy commissioners, such as the Interstate Commerce Commission, the Federal Trade Commission, the Secretary of Agriculture acting under the Packers and Stockyards Act, and the like.29 Logically applied it would seriously impair the entire administrative process.30 Eighth. No good reason is suggested why all the evidence which Benson presented to the district court in this cause could not have been presented before the deputy commissioner; nor why he should have been permitted to try his case provisionally' before the administrative tribunal and then to retry it in the district court upon additional evidence theretofore withheld. To permit him to do so violates the salutary principle that administrative remedies must first be exhausted before resorting to the court, imposes unnecessary and burdensome expense upon the other party and cripples the effective administration of the Act. Under the prevailing practice, by which the judicial review has been confined to questions of law, the proceedings before the deputy commissioners "But see Interstate Commerce Commission v. Louisville & Nashville R. Co., 227 U. S. 88, 92. The statement by Mr. Justice Lamar there, however, went no further than to indicate that in some circumstances the courts on review of orders of the Interstate Commerce Commission might pass an independent judgment upon the evidence adduced before the Commission. See also Interstate Commerce Commission v. Northern Pacific Ry. Co., 216 U. S. 538, 544; Manufacturers Ry. Co. v. United States, 246 U. S. 457, 488-490. 30 See Dickinson, “Administrative Justice and the Supremacy of Law,” p. 310. 94 OCTOBER TERM, 1931. Brandeis, J., dissenting. 285 U.S. have proved for the most part non-controversial;31 and relatively few cases have reached the courts.32 To permit a contest de novo in the district court of an issue tried, or triable, before the deputy commissioner will, I fear, gravely hamper the effective administration of the Act. The prestige of the deputy commissioner will necessarily be lessened by the opportunity of relitigating facts in the courts. The number of controverted cases may be largely increased. Persistence in controversy will be encouraged. And since the advantage of prolonged litigation lies with the party able to bear heavy expenses, the purpose of the Act will be in part defeated.33 31 Out of the 30,383 non-fatal cases disposed of during the fiscal year ending June 30, 1931, the deputy commissioners held hearings in only 729, according to information furnished by the United States Employees’ Compensation Commission. Compensation payments were completed in 11,776 cases, or 38.8 per cent, of the total. In 17,328 cases, or 57 per cent., the injured employee failed to receive compensation because no time was lost, or less than seven days, on account of the injury. The balance of 1,279 cases, amounting to 4.2 per cent, of the whole, were dismissed because they did not come within the scope of the law. Among the 18,607 non-compensated cases, formal claims were filed by the employee in only 1,025 instances. See, also, Report of the Compensation Commission, 1930, pp. 68-70. 32 For the fiscal year ending June 30, 1931, 101 new cases were filed in the district courts, out of a total of 30,489 cases disposed of. Report of the United States Employee’s Compensation Commission, pp. 69, 71. For the three preceding years the number of cases filed in the courts was, respectively, 61, 58, and 15. Report, 1930, p. 62; id. 1929, p. 70; id. 1928, p. 34. The decision of the Circuit Court of Appeals in the case at bar declaring the right to a trial de novo was rendered November 17, 1930, and the first opinion of the District Court on May 27, 1929. 33 How serious these consequences will be is a question of speculation; but it is plain that they will be aggravated by the inherent uncertainty in the scope of the doctrine announced. The determine,-tion of what facts are “ jurisdictional ” or “ fundamental ” is calculated to provoke a multitude of disputes. That there is a difference in kind, for example, between the defense that the injured claimant is not an employee^ and that he was not acting as an employee when HURLEY v. KINCAID. 95 22 Syllabus. In my opinion the judgment of the Circuit Court of Appeals should be reversed and the case remanded to the District Court, sitting as a court of equity, for consideration and decision upon the record made before the deputy commissioner. Mr. Justice Stone and Mr. Justice Roberts join in this opinion. HURLEY, SECRETARY OF WAR, v. KINCAID. CERTIORARI TO THE CIRCUIT COURT OF APPEALS FOR THE FIFTH CIRCUIT. No. 457. Argued January 4, 5, 1932.—Decided February 23, 1932. 1. An owner of land lying within the proposed channel of the Boeuf Floodway, part of the plan authorized by the Mississippi River Flood Control Act, brought suit to enjoin the carrying out of the work in the floodway and specifically to enjoin the receiving of bids for the construction of the guide-levees therefor, claiming that if the work should be commenced without proceedings first having been instituted to condemn his land or the flowage rights thereon, the United States would in effect be taking his property without due process of law and without just compensation. Complainant conceded that the Act was valid and that it authorized those charged with its execution to take his lands or an easement therein. Held, that injunction was not the proper remedy, for if what was done, or was contemplated, constituted a taking of the property, then under the Tucker Act there was a plain, adequate and complete remedy at law. P. 104. 2. The Fifth Amendment does not entitle the owner of lands taken for public use to be paid in advance of the taking. Id. he was injured, or that there is a difference between the latter defense and the defense that the disability, if any, from which he suffers resulted only in part, or not at all, from the employment in which he claims to have suffered it, are propositions which employers will be unlikely to accept until they have submitted them to the decision of the courts. The effectiveness of this legislation will be lessened by this opportunity for barren controversy over procedural rights and by delayed or thwarted determination of substantive ones. 96 OCTOBER TERM, 1931. Argument for Petitioners. 285 U.S. 3. Where large public interests are concerned and the issuance of an injunction may seriously embarrass the accomplishment of important governmental ends, a court of equity acts with caution and only upon clear showing that its intervention is necessary in order to prevent an irreparable injury. P. 104, n. 49 F. (2d) 768, reversed. Certiorari, 284 U. S. 610, to review a judgment of the Circuit Court of Appeals which affirmed a decree of the District Court enjoining petitioners from carrying out a project authorized by the Mississippi River Flood Control Act. The case is stated fully in the opinion. Solicitor General Thacher, with whom Assistant Attorney General Richardson and Messrs. G. A. Iverson and Paul D. Miller were on the brief, for petitioners. The only flowage rights which § 4 of the Act requires the United States to “ provide ” are those which the Secretary and the Chief of Engineers have determined to be necessary. The first paragraph of § 4 has no general application to the respondent’s land. It applies only where the plan contemplates the deliberate diversion, by eliminating or diminishing existing flood protection, of destructive flood waters over lands not previously subjected to like destructive flood waters. Neither the findings of the District Court nor the evidence establish that § 4 is applicable to the respondent’s land. Assuming that § 4 requires the acquisition of flowage rights over the respondent’s land, the statute does not require that such rights must be condemned or purchased prior to the construction of the proposed levees in the Boeuf Basin. If petitioners are acting pursuant to a lawful statute, they can not be enjoined even if their acts would result in a taking. But nothing which the petitioners have HURLEY v. KINCAID. 97 95 Argument for Respondent. done or propose to do constitutes a “ taking.” There must be “ an actual invasion or appropriation of land as distinguished from consequential damage.” Sanguinetti v. United States, 264 U. S. 146, 149. The bill is not based upon actual or threatened impairment of the respondent’s rights, but “ upon assumed potential invasions.” Arizona v. California, 283 U. S. 423, 462. Where there has been no actual appropriation or physical invasion, an injunction will not issue to interfere with the consummation of a public improvement. If respondent is entitled to compensation, he is entitled to sue the United States upon an implied contract in the Court of Claims, or in the District Court under the Tucker Act. If the petitioners were not acting illegally, no cause of action against them as individuals existed, and the United States was an indispensable party to the suit. Messrs. Wm. C. Dufour and Harry H. Russell, with whom Messrs. T. J. Freeman, John St. Paul, Jr., and G. L. Porterie were on the brief, for respondent. The constitutional guaranty that property shall not be taken for public use without just compensation by agents of the State to whom this power is delegated, is deemed to establish a right of so high and sacred a character that any threatened infringement of the right should be restrained without consideration of the adequacy of the legal remedy. Lewis, Eminent Domain, § 632; Pomeroy, Equitable Remedies, § 465; McElroy v. Kansas City, 21 Fed. 261; Bass v. Metropolitan R. Co., 82 Fed. 857. The respondent has no remedy against what in legal effect amounts to a taking of his property without just compensation, except by injunction. Pine v. Mayor, 103 Fed. 337, St. Louis & S. F. R. Co. v. Tulsa, 213 Fed. 87; Ashland Elec. Power Co. v. Ashland, 217 Fed. 158; Toledo v. Toledo Rys. de Light Co., 259 Fed. 450; Thornton v. 137818°—32-7 98 OCTOBER TERM, 1931. Argument for Respondent. 285 U.S. Road Imp. Dist., 291 Fed. 518; Wilmington Ry. Co. v. Taylor, 198 Fed. 159. Federal courts have the power to restrain unlawful, arbitrary, and unwarranted acts of federal officers. There is no question of any claim resulting from the construction of levees as such. There is no denial of the right of the Government to construct standard levees or adequate levees at this or other points. The denial is of the right to construct what are known as guide levees— levees which will fix by design the Boeuf Diversion Channel, provided for in the adopted plan, and include respondent’s land between the bounds of this designed channel. Waters from the main channel of the Mississippi will be designedly diverted through this diversion channel by what is termed a fuse-plug section, which automatically functions when the river reaches a certain stage. The purpose of this diversion channel is to protect other portions of the territory through which the Mississippi flows, and the territory outside of these guide levees. The suit is directed at the designed dedication of this and other property within these guide levees, to be flooded in the interest of the public at large. The deprivation of its use, the elimination of its possibilities, the depreciation of its value resulting from being dedicated and enclosed in a basin to be designedly flooded, is the taking of his property. Ambler Realty Co. v. Euclid, 207 Fed. 312; Richards v. Washington Terminal Co., 233 U. S. 546; Peabody v. United States, 231 U. S. 541; Gibson v. United States, 166 U. S. 269; Bedford n. United States, 192 U. S. 217; Pennsylvania Coal Co. v. Mahon, 260 U. S. 393; United States v. Cress, 243 U. S. 316; Monongahela Nav. Co. n. United States, 148 U. S. 324, 326; United States v. Lynah, 188 U. S. 445. The Act says that the United States shall provide flowage rights, if they are necessary to carry out the plan; and as some one had to be authorized to select places for these flowage rights, the Secretary of War and Chief of HURLEY v. KINCAID. 99 95 Opinion of the Court. Engineers were designated; and in the present case they have selected the lands of respondent. The fact that it may be years before this diversion channel is flooded and respondent’s property absolutely destroyed has no bearing whatsoever upon respondent’s right to protect himself in advance of a taking without compensation. Immunity of the Government from suit does not extend to its officers when acting unlawfully. Philadelphia Co. v. Stimpson, 223 U. S. 605. Mr. Justice Brandeis delivered the opinion of the Court. On June 15, 1929, Kincaid brought this suit in the federal court for western Louisiana against the United States, the Secretary of War, the Chief of Engineers, the Mississippi River Commission and its members, to enjoin the carrying out of any work in the Boeuf Floodway under the Mississippi River Flood Control Act, May 15, 1928, c. 569, 45 Stat. 534, and specifically to enjoin the receiving of bids and awarding of contracts for the construction of certain guide-levees bounding the Floodway. The Mississippi River Flood Control Act adopted the Jadwin Plan for protection against floods. The Act provides for raising the levees generally three feet; for improving the carrying capacity of the main channel of the river by revetment work; and for limiting the floodwaters in this channel to its safe capacity through the provision of specified diversion channels. Among these is the Boeuf Floodway, which will carry excess floodwaters from a point below the mouth of the Arkansas through the Boeuf Basin west of the Mississippi into the backwater area at the mouth of the Red River. Such diversion has taken place to some extent in the past, when flood-waters have passed over, or through crevasses in, the twenty mile section of the levee at the head of the Basin, known as the Cypress Creek levee. Before 100 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. this section was completed, in 1921, the Boeuf Basin and the parallel Tensas Basin, lying between it and the main channel, served as natural overflow areas of the Mississippi in flood periods. The Plan leaves the Cypress Creek section at its present height. But as the levees elsewhere are to be raised three feet and materially strengthened, preventing overflow at other points, the volume of water passing into the diversion channel may be greatly increased. Moreover, guide, or protection, levees running in a southerly direction are to be built on either side of the Floodway, which will direct the waters into a specified channel of a width varying from ten to twenty miles; and new levees are to be constructed which will cause this Floodway to carry waters formerly overflowing into the Tensas Basin. The maximum previous flow of water into the Boeuf Basin occurred in 1927, and is estimated at 450,000 cubic feet per second. Under the new Plan the flow may reach 1,250,000 feet per second in times of extraordinary flood. The War Department advertised for bids for the construction of guide-levees for the Boeuf Floodway, to be received June 17, 1929. To complete the project will probably require ten years. Kincaid owns a 160-acre farm in the Boeuf Basin at a point 125 miles below the point of diversion. No part of the guide-levees is to be built on his land; but the land lies within the proposed channel of the Floodway. He alleges that the project will expose his property to additional destructive floods and thus subject it to a new servitude; that the mere “setting apart [of] this property as a flood way and diversion channel and . . . advertising for and receiving bids for . . . construction of the guide levees ” casts a cloud upon his title;1 and that the Government is proposing to com- 1 The allegation is: “ That t[ie acts of the defendants in setting apart this property as a floodway and diversion channel and in advertising for and receiving bids for the doing of the proposed work, to wit, the construction of the guide levees and the contemplated acts HURLEY v. KINCAID. 101 95 Opinion of the Court. mence the work without having instituted condemnation proceedings. He charges that the acts of the defendants in advertising for bids for the construction of the guidelevees, to be followed by the letting of contracts, without having taken proceedings to condemn his land, “ will mean the taking by the United States Government of complainant’s lands and properties without due process of law and without just compensation.” All the defendants moved to dismiss the bill on the grounds, among others, that the United States had not consented to be sued, and that the bill disclosed no ground for equitable relief. The District Court held that the United States could not be made a party, since it had not consented to be sued; but overruled the motion to dismiss the suit, on the ground that the United States was not an indispensable party; that § 4 of the Act declares that “ the United States shall provide flowage rights for additional destructive flood waters that will of the defendants in the awarding of contracts therefore [sic], have already had the effect of casting a cloud upon the title of complainant to his said lands and properties and have materially affected his use and enjoyment of same and have materially affected and impaired the value thereof. That, [as] the result of setting apart this area as a floodway or diversion channel and the publication by defendants of said advertisements for bids for the construction of the guide levees, this property has not only deterioratedxin value but complainant’s title to same has been seriously clouded, his use of same has been seriously affected, and complainant would be unable to borrow money on said lands, sell or dispose of same, or interest persons in operating said lands for farms or for any other purposes, owing to the fact that the Government has indicated that it has taken possession or intends to take immediate possession of this property for a diversion channel or a floodway. That, as a result of making this area, in which complainant’s lands and those of others are situated, a floodway or diversion channel, these lands will be rendered unfit for agricultural or any other purpose. That the title to complainant’s lands is seriously clouded by said acts, and his ability to use said properties or obtain credit thereon is seriously affected, and, as stated above, this property is well worth the sum of $9,000.00.” 102 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. pass by reason of diversion from the main channel of the Mississippi River”;2 that, on the allegations of the bill, the creation of the Boeuf Floodway would subject Kincaid’s land to additional destructive flood-waters; that the Act required the Government to condemn, or otherwise to acquire flowage rights over, the property before proceeding with the flood-control project in the Boeuf Basin; and that, by starting work before acquiring such rights, the defendants were proceeding in violation of both the Act and the Constitution. 35 F. (2d) 235. Thereupon an answer was filed and the case was heard on evidence on final hearing. The defendants showed 8 The following are the provisions of the Act relevant to the payment of damages and of compensation for the taking of land. “ Sec. 3. . . . No liability of any kind shall attach to or rest upon the United States for any damage from or by floods or flood waters at any place: Provided, however, That if in carrying out the purposes of this Act it shall be found that updn any stretch of the banks of the Mississippi River it is impracticable to construct levees, either because such construction is not economically justified or because such construction would unreasonably restrict the flood channel, and lands in such stretch of the river are subjected to overflow and damage which are not now overflowed or damaged by reason of the construction of levees on the opposite banks of the river it shall be the duty of the Secretary of War and the Chief of Engineers to insti-tute proceedings on behalf of the United States Government to acquire either the absolute ownership of the lands so subjected to overflow and damage or floodage rights over such lands. “ Sec. 4. The United States shall provide flowage rights for additional destructive flood waters that will pass by reason of diversions from the main channel of the Mississippi River. . . . “ The Secretary of War may cause proceedings to be instituted for the acquirement by condemnation of any lands, easements, or rights of way which, in the opinion of the Secretary of War and the Chief of Engineers, are needed in carrying out this project, the said proceedings to be instituted in the United States district court for the district in which the land, easement, or right of way is located. . . . The provisions of sections 5 and 6 of the River and Harbor Act of July 18, 1918, are hereby made applicable to the acquisition of lands, easements, or rights of way needed for works of flood control. . . . HURLEY v. KINCAID. 103 95 Opinion of the Court. that, in the opinion of the Secretary of War and the Chief of Engineers, it was unnecessary to acquire any flowage rights over complainant’s lands; insisted that these lands would be better protected under the Plan than heretofore; and claimed that § 4 of the Act was not applicable, because the Plan would not subject the property to “ additional destructive flood waters.” The District Court found on these issues against the Government; held that upon the evidence the Plan involved a taking of rights in respect to Kincaid’s land; and that although the physical occupancy of it would not occur until the land had been overflowed in time of flood, “ the process of subjecting it to that service and the taking possession in so far as is either necessary or contemplated by the act will begin with the construction of the first levee or works which are intended to direct the water upon the land.” It enjoined the defendants, other than the United States, “ from proceeding with the construction authorized by or carrying out the plan adopted by . . . the Mississippi River flood-control act in the Boeuf Basin flood way, . . . until the property of the said complainant has been acquired by the United States Government or the flowage rights over the same acquired either by purchase or condemnation for such purpose.” 37 F. (2d) 602. The Circuit Court of Appeals affirmed the judgment of the District Court. 49 F. (2d) 768. This Court granted a writ of certiorari. We have no occasion to determine any of the controverted issues of fact or any of the propositions of substantive law which have been argued. Kincaid concedes that the Act is valid and that it authorizes those entrusted with its execution to take his lands or an easement therein. We may assume that, as charged, the mere adoption by Congress of a plan of flood control which involves an intentional, additional, occasional flooding of complainant’s land constitutes a taking of it—as soon as the Government 104 OCTOBER TERM, 1931. Opinion of the Court. 285U.S. begins to carry out the project authorized. Compare United States v. Lynah, 188 U. S. 445, 469; United States v. Cress, 243 U. S. 316, 328; Peabody v. United States, 231 U. S. 530, 538; Portsmouth Harbor Land & Hotel Co. v. United States, 250 U. S. 1; 260 U. S. 327, 329. If that which has been done, or is contemplated, does constitute such a taking, the complainant can recover just compensation under the Tucker Act in an action at law as upon an implied contract, since the validity of the Act and the authority of the defendants are conceded. United States v. Great Falls Mfg. Co., 112 U. S. 645, 658; Great Falls Mfg. Co. v. Attorney General, 124 U. S. 581, 600; Tempel v. United States, 248 U. S. 121, 129; Marion & Rye Valley Ry. Co. v. United States, 270 U. S. 280, 283. The compensation which he may obtain in such a proceeding will be the same as that which he might have been awarded had the defendants instituted the condemnation proceedings which it is contended the statute requires. Nor is it material to inquire now whether the statute does so require. For even if the defendants are acting illegally, under the Act, in threatening to proceed without first acquiring flowage rights over the complainant’s lands, the illegality, on complainant’s own contention, is confined to the failure to compensate him for the taking, and affords no basis for an injunction if such compensation may be procured in an action at law.3 The Fifth Amendment does not entitle him to be paid in advance of the taking. Crozier v. Krupp, 224 U. S. 290, 306. Compare Backus v. Fort Street Union Depot Co., 169 U. S. 557, 568; Bragg 8 Even where the remedy at law is less clear and adequate, where large public interests are concerned and the issuance of an injunction may seriously embarrass the accomplishment of important governmental ends, a court of equity acts with caution and only upon clear showing that its intervention is necessary in order to prevent an irreparable injury. Compare Osborne v. Missouri Pacific Ry. Co., 147 U. S. 248, 258, 259; New York City v. Pine, 185 U. S. 93, 97. No such showing was made here. PACKER CORPORATION v. UTAH. 105 95 Syllabus. v. Weaver, 251 U. S. 57, 62; Joslin Mfg. Co. v. City of Providence, 262 U. S. 668, 677; Dohany v. Rogers, 281 U. S. 362, 366.4 As the complainant has a plain, adequate and complete remedy at law, the judgment is reversed with direction to dismiss the bill without prejudice. Reversed. PACKER CORPORATION v. UTAH. APPEAL FROM THE SUPREME COURT OF UTAH. No. 357. Argued January 20, 1932.—Decided February 23, 1932. A statute of Utah forbids the advertising of cigarettes and other tobacco products on billboards, street car signs, and placards, but does not apply to advertising in newspapers and periodicals, this exemption having been introduced to avoid conflict with the commerce clause of the Federal Constitution as construed by the State’s highest court. A billboard company was convicted for displaying a poster advertising a brand of cigarettes. Both poster and cigarettes were manufactured outside of the State and shipped into it by a foreign corporation; and the advertising was done under contract with an agency in another State. It was conceded that the regulation of the local sale and advertising of tobacco products was within the police power of the State. Held: 1. The amendment exempting advertising in newspapers and periodicals to avoid conflict with the commerce clause, did not produce a discrimination violative of the equal protection clause of the Fourteenth Amendment. P. 108. 2. It is a reasonable ground of classification that the State has power to legislate with respect to persons in certain situations and not with respect to those in a different one. P. 110. 3. The discrimination between billboard and newspaper advertising was not an arbitrary classification. The legislature may recognize degrees of evil and adapt its legislation accordingly. Id. * See also Cherokee Nation v. Southern Kansas Ry. Co., 135 U. S. 641, 659; Sweet v. Rechel, 159 U. S. 380, 400, 407; Adirondack Ry. Co. v. New York, 176 U. S. 335, 349; Williams v. Parker, 188 U. S. 491, 502, 503; Manigault v. Springs, 199 U. S. 473, 485, 486; Hays v. Port oj Seattle, 251 U. S. 233, 238. 106 OCTOBER TERM, 1931. Argument for Appellant. 285U.S. 4. In making it illegal to carry out the contract under which the advertising was being done, the statute does not violate the due process clause of the Fourteenth Amendment, since the subject of the legislation was within the police power of the State. P. 111. 5. In preventing the display, for intrastate advertising, of posters shipped in from another State, the statute does not impose an unreasonable restraint upon interstate commerce. Id. 78 Utah 177; 2 P. (2d) 114, affirmed. Appeal from a judgment affirming a conviction for displaying a billboard poster advertising cigarettes. Messrs. Gardner Abbott and William H. Reeder, Jr., with whom Messrs. Dan B. Shields and W. T. Kinder were on the brief, for appellant. Upon the question of discrimination they cited: Louisville Gas Co. v. Coleman, 277 U. S. 32, 37; Connolly v. Union Sewer Pipe Co-, 184 U. S. 540, 558; Power Mjg. Co. v. Saunders, 274 U. S. 490, 493; Smith v. Cahoon, 283 U. S. 553, 566. Also Truax v. Corrigan, 257 U. S. 312, 332; Hayes v. Missouri, 120 U. S. 68, 71; Gulj, C. & S. P. Ry. Co. v. Ellis, 165 U. S. 150, 155; Cotting v. Kansas City Stock Yards Co., 183 U. S. 79, 111; State v. Packer Corp., 297 Pac. 1013, 1022. To make it illegal for the appellant to carry out its contract by a statute so unreasonable and arbitrary as this, is to deprive the appellant of property without due process of law. Prudential Ins. Co. v. Cheek, 259 U. S. 530, 536; Wolff Co. v. Industrial Court, 262 U. S. 522, 534; Liberty Warehouse Co. v. Burley Tobacco Assn., 276 U. S. 71, 97; Fairmont Creamery Co. v. Minnesota, 274 U. S. 1. The advertisements which were sent into the State from a foreign State for the purpose of being posted were articles in interstate commerce, and prohibiting their display was an undue restraint of interstate commerce. Ramsey Co. v. Bill Posters Assn., 260 U. S. 501; Binderup v. Pathe Exchange, 263 U. S. 291, 309; Illinois Cent. R. PACKER CORPORATION v. UTAH. 107 105 Opinion of the Court. Co. v. Railroad Commission, 236 U. S. 157, 163; Western Union v. Foster, 247 U. S. 105, 113; Western Oil Rfg. Co. v. Lipscomb, 244 U. S. 346, 349. Messrs. George P. Parker, xAttorney General of Utah, and Byron D. Anderson, Assistant Attorney General, for appellee. Mr. Justice Brandeis delivered the opinion of the Court. Section 2, of c. 145, Laws of Utah, 1921, as amended by c. 52, § 2, Laws of 1923, and c. 92, Laws of 1929, provides: “ It shall be a misdemeanor for any person, company, or corporation, to display on any bill board, street car sign, street car, placard, or on any other object or place of display, any advertisement of cigarettes, cigarette papers, cigars, chewing tobacco, or smoking tobacco, or any disguise or substitute of either, except that a dealer in cigarettes, cigarette papers, tobacco or cigars or their substitutes, may have a sign on the front of his place of business stating that he is a dealer in such articles, provided that nothing herein shall be construed to prohibit the advertising of cigarettes, cigarette papers, chewing tobacco, smoking tobacco, or any disguise or substitute of either in any newspaper, magazine, or periodical printed or circulating in the State of Utah.” The Packer Corporation, a Delaware corporation engaged in billboard advertising and authorized to do business in Utah, was prosecuted under this statute for displaying a large poster advertising Chesterfield cigarettes on a billboard owned by it and located in Salt Lake City. The poster was displayed pursuant to a general contract for advertising Chesterfield cigarettes, made by the defendant with an advertising agency in the State of Ohio. Both the poster and the cigarettes advertised were manufactured without the State of Utah and were shipped into 108 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. it by Liggett & Myers Tobacco Company, a foreign corporation. The defendant claimed that the statute violates several provisions of the Federal Constitution; the objections were overruled; and the defendant was convicted and sentenced. On the authority of its recent decision in State v. Packer Corp., 297 Pac. 1013, the highest court of the State affirmed the judgment of the trial court. 2 P. (2d) 114. The case is here on appeal under § 237 (a) of the Judicial Code, as amended by the Act of February 13, 1925, c. 229, 43 Stat. 937. It is not denied that the State may, under the police power, regulate the business of selling tobacco products, compare Gundling v. Chicago, 177 U. S. 183, 188; Austin v. Tennessee, 179 U. S. 343, 348; and the advertising connected therewith, compare Rast v. Van Deman & Lewis Co., 240 U. S. 342, 364, 365; Tanner v. Little, 240 U. S. 369, 384, 385. The claim is that because of its peculiar provisions the statute violates the Federal Constitution. First. The contention mainly urged is that the statute violates the equal protection clause of the Fourteenth Amendment; that in discriminating between the display by appellant of tobacco advertisements upon billboards and the display by others of such advertisements in newspapers, magazines or periodicals, it makes an arbitrary classification. The history of the legislation shows that the charge is unfounded. In Utah no one may sell cigarettes or cigarette papers without a license.1 Since 1890, it has been the persistent policy, first of the Territory and then of the State, to prevent the use of tobacco by minors, and to discourage its use by adults. Giving tobacco to a minor, as well as selling it, is a misdemeanor.1 2 1 Laws of Utah, 1921, c. 145, § 1, as amended, Laws of 1923, c. 52, § 1; Laws of 1925, c. 68; Laws of 1930, c. 5, § 1. 2 Laws of Utah, 1890, c. 65, § 1, as amended, Laws of 1911, c. 51; Laws of 1930, c. 5, § 1 (k). PACKER CORPORATION v. UTAH. 109 105 Opinion of the Court. So is permitting a minor to frequent any place of business while in the act of using tobacco in any form.3 Mere possession of tobacco by the minor is made a crime.4 And smoking by anyone in any enclosed public place (except a public smoking room designated as such by a conspicuous sign at or near the entrance) is a misdemeanor.5 In 1921, the legislature enacted a general prohibition of the sale or giving away of cigarettes or cigarette papers to any person, and of their advertisement in any form. Laws of Utah, 1921, c. 145, §§ 1, 2. After two years, however, the plan of absolute prohibition of sale was abandoned in favor of a license system. Laws of Utah, 1923, c. 52, § 1. But the provision against advertisements was retained, broadened to include tobacco in most other forms. In 1926, this statute was held void under the commerce clause, as applied to an advertisement of cigarettes manufactured in another State, inserted in a Utah newspaper which circulated in other States. State v. Salt Lake Tribune Publishing Co., 68 Utah 187; 249 Pac. 474. Thereupon the legislature, unwilling to abandon altogether its declared policy, amended the law by striking out the provision which prohibited advertising in newspapers and periodicals. The classification alleged to be arbitrary was made in order to comply with the requirement of the Federal Constitution as interpreted and applied by the highest court of the State. Action by a State taken to observe one prohibition of the Constitution does not entail the violation of another. J. E. Raley de Bros. v. Richardson, 264 U. S. 157, 160; Des Moines Nat. Bank v. Fairweather, 263 U. S. 103, 116, 117. Compare Dolley 3 Laws of Utah, 1921, c. 145, § 3. See Laws of 1923, c. 52, § 1. 4 Laws of Utah, 1903, c. 135, as amended, Laws of 1911, c. 51; Laws of 1913, c. 59. 5 Laws of Utah, 1921, c. 145, § 4, as amended, Laws of 1923, 0. 52, § 4. 110 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. v. Abilene Nat. Bank, 179 Fed. 461, 463, 464. It is a reasonable ground of classification that the State has power to legislate with respect to persons in certain situations and not with respect to those in a different one.6 Compare Williams v. Walsh, 222 U. S. 415, 420. Moreover, as the state court has shown, there is a difference which justifies the classification between display advertising and that in periodicals or newspapers: “ Billboards, street car signs, and placards and such are in a class by themselves. They are wholly intrastate, and the restrictions apply without discrimination to all in the same class. Advertisements of this sort are constantly before the eyes of observers on the streets and in street cars to be seen without the exercise of choice or volition on their part. Other forms of advertising are ordinarily seen as a matter of choice on the part of the observer. The young people as well as the adults have the message of the billboard thrust upon them by all the arts and devices that skill can produce. In the case of newspapers and magazines, there must be some seeking by the one who is to see and read the advertisement. The radio can be turned off, but not so the billboard or street car placard. These distinctions clearly place this kind of advertisement in a position to be classified so that regulations or prohibitions may be imposed upon all within the class. This is impossible with respect to newspapers and magazines.” 297 Pac. 1013, 1019. The legislature may recognize degrees of evil and adapt its legislation accordingly. 6A contention was made in argument that the State had not in fact acted upon this basis of classification since the statute makes no distinction as to newspapers and magazines circulating solely in intrastate commerce. But the record does not indicate the existence of any such publications. Moreover, the administrative difficulties of any effort to make the applicability of the statute depend upon the character of the circulation of a particular newspaper or magazine would be such as to justify the exclusion of the entire class, PACKER CORPORATION v. UTAH. Ill 105 Opinion of the Court. Miller v. Wilson, 236 U. S. 373, 384; Truax v. Raich, 239 U. S. 33, 43. Second. The defendant contends that to make it illegal to carry out the contract under which the advertisement was displayed takes its property without due process of law because it arbitrarily curtails liberty of contract. The contention is without merit. The law deals confessedly with a subject within the scope of the police power. No facts are brought to our attention which establish either that the evil aimed at does not exist or that the statutory remedy is inappropriate. O’Gorman & Young v. Hartford Fire Insurance Co., 282 U. S. 251, 257; Hardware Dealers Mutual Fire Insurance Co. v. Glidden Co., 284 U. S. 151. Third. The defendant contends also that the statute imposes an unreasonable restraint upon interstate commerce because it prevents the display on billboards of posters shipped from another State. It does not appear from the record that the defendant is the owner of the posters. Its interest is merely in its billboards located in the State, upon which it displays advertisements for which it is paid. So far as the posters are concerned, assuming them to be articles of commerce, compare Charles A. Ramsay Co. v. Associated Bill Posters, 260 U. S. 501, 511, the statute is aimed, not at their importation, but at their use when affixed to billboards permanently located in the State. Compare Browning v. Waycross, 233 U. S. 16, 22, 23; General Railway Signal Co. v. Virginia, 246 U. S. 500, 510. The prohibition is non-discriminatory, applying regardless of the origin of the poster. Its operation is wholly intrastate, beginning after the interstate movement of the poster has ceased. Compare Hygrade Provision Co. v. Sherman, 266 U. S. 497, 503; Hebe Co. n. Shaw, 248 U. S. 297, 304. See also Corn Products Refining Co. v. Eddy, 249 U, S. 427, 433, To sustain the 112 OCTOBER TERM, 1931. Syllabus. 285 U.S. defendant’s contention would be to hold that the posters, because of their origin, were entitled to permanent immunity from the exercise of state regulatory power. The Federal Constitution does not so require. Compare Mutual Film Corp. n. Industrial Commission, 236 U. S. 230, 240, 241. So far as the articles advertised are concerned, the solicitation of the advertisements, it may be assumed, is directed toward intrastate sales. Compare Di Santo v. Pennsylvania, 273 U. S. 34. Whatever may be the limitations upon the power of the State to regulate solicitation and advertisement incident to an exclusively interstate business, the commerce clause interposes no barrier to its effective control of advertising essentially local. Compare Jell-0 Co. v. Landes, 20 F. (2d) 120, 121; International Text-Book Co. v. District of Columbia, 35 App. D. C. 307, 311, 312. Affirmed. ST. PAUL FIRE & MARINE INSURANCE CO. v. BACHMANN. CERTIORARI TO THE CIRCUIT COURT OF APPEALS FOR THE FOURTH CIRCUIT. No. 311. Argued January 12, 1932.—Decided February 23, 1932. A fire insurance policy contained a warranty exempting the insurer from liability for loss occurring while the hazard was increased by any means “ within the control or knowledge of the insured,” and another warranty exempting the insurer if loss occurred while there were kept on the premises certain prohibited articles, including gasoline. A rider altered this prohibition to the extent of permitting gasoline to be kept and used for the purpose of bottling automobile oils “ or for other mercantile purposes not more hazardous.” Fire occurred during occupancy by a tenant engaged in the illegal manufacture of intoxicating liquor who kept on the premises a large quantity of gasoline for use in that connection. Held: 1. A determination of the hazard involved was essential to main-taining the defense under either warranty. P, 116. ST. PAUL F. & M. INS. CO. v. BACHMANN. 113 112 Opinion of the Court. 2. The increase-of-hazard warranty is not violated unless there is increase of hazard within the knowledge and control of the insured; the prohibited articles warranty may be violated irrespective of the knowledge and control of the insured. P. 116. 3. Whether the business of operating moonshine stills was or was not more hazardous than that of bottling automobile oils was a question of fact for the jury. P. 117. 4. If the illicit business was more hazardous, the. prohibited articles warranty was violated. Id. 5. An allegation in a specification of defense under the prohibited articles warranty, charging the insured with knowledge and control, is to be regarded as surplusage. Id. 6. The burden of proof was upon the insurer to show that the occupancy was not one to which the gasoline permit extended. Id. 7. The court could not take judicial notice that the operation of the stills was more hazardous than bottling automobile oils or say that it was not a mercantile purpose. P. 118. 8. The defendant’s failure to ask proper instructions does not cure the error in instructions which were given, and to which exceptions were taken. Id. 49 F. (2d) 158, reversed. Certiorari, 284 U. S. 605, to review a judgment affirming a judgment against the insurance company in an action upon a policy of fire insurance. Mr. James M. Guiher, with whom Messrs. Russell L. Furbee, Philip P. Steptoe, and Louis A. Johnson were on the brief, for petitioner. Messrs. Charles J. Schuck and Carl G. Bachmann, with whom Mr. J. Bernard Handlan was on the brief, for respondent. Mr. Justice Brandeis delivered the opinion of the Court. This action to recover on a policy of fire insurance was brought in the federal court for northern West Virginia by Sophia C. Bachmann, a citizen of that State, against 137818°—32------8 114 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. the St. Paul Fire & Marine Insurance Company, a Minnesota corporation. The parties stipulated that the plaintiff was entitled to recover “ unless the policy had been forfeited and nullified by the alleged violations as set forth in defendant’s Specifications of Defense Nos. 1 and 2 filed in this case.” The first specification recited the Increase of Hazard Warranty: “Unless otherwise provided by agreement in writing added hereto, this company shall not be liable for loss or damage occurring (b) while the hazard is increased by any means within the control or knowledge of the insured ”; and alleged that by means “ within the knowledge and control of the plaintiff and her agent or agents ” the fire hazard had been increased. The second specification of defense recited the Prohibited Articles Warranty: “Unless otherwise provided by agreement in writing added hereto, this Company shall not be liable for loss or damage occurring (d) while . . . there is kept, used or allowed on the described premises . . . gasoline . . .”; and alleged that “ at the time of the fire complained of, and prior thereto, large quantities of gasoline were being kept . . . upon and about the insured premises, all of which was well known to the plaintiff and her agent or agents, and was in violation of the foregoing condition and warranty.” To each defense the plaintiff replied that the warranty recited had been modified by a rider added to the policy; and also that prior to the fire she had no knowledge or control, as alleged, of the circumstances relied upon as showing breach of the warranty. The rider set forth in the reply altered the occupancy clause of the policy, which had originally described the insured building as “ occupied as Produce Store,” so that it read, “ occupied for bottling automobile oils, offices, and other mercantile purposes not more hazardous.” Another clause of the policy permitted the insured “ for present and other occupancies not more hazardous ” “ to do such work and ST. PAUL F. & M. INS. CO. v. BACHMANN. 115 112 Opinion of the Court. to keep and use such materials as are usual in such occupancies;” and a rule of the West Virginia Fire Underwriters’ Association (concededly a part of the insurance contract) provides that “ the word ‘ materials ’ as used above, includes gasoline and such other materials as are prohibited by the printed conditions of the policy, when kept and used for such purposes as are usual to the occupancies permitted.” Gasoline is used in the business of bottling automobile oils. The case was tried before a jury. The defendant introduced evidence tending to show that the premises were occupied at the time of the fire by a tenant engaged in the illegal manufacture of intoxicating liquors; and that a large quantity of gasoline was kept on the premises for use in that connection. But it failed in its effort to prove that the plaintiff had knowledge of these facts. The verdict was for the plaintiff; and the judgment entered thereon was affirmed by the Circuit Court of Appeals, 49 F. (2d) 158. The writ of certiorari was granted because of alleged conflict with decisions of this Court and of the Eighth Circuit Court of Appeals. The only error assigned here by the Insurance Company relates to the construction of the Prohibited Articles Warranty, and to the Circuit Court of Appeals’ approval of the trial court’s instructions with reference thereto. It is contended that under that warranty, even as modified by the rider, the presence of gasoline in connection with the use of the premises for the illegal manufacture of intoxicating liquors was an absolute bar to liability, regardless of the plaintiff’s knowledge or control of the conditions; and that the trial court, in instructing the jury that the defendant must establish the fact of such knowledge and control, confused the requirements of the Prohibited Articles Warranty with those of the Increase of Hazard Warranty, and in effect read the condition against the use of gasoline out of the policy. 116 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. In passing upon this contention, the Circuit Court of Appeals said [p. 160]: “At the time of the inspection by the agent of the insurance company, and the attachment of the rider to the policy, the building was being used for the handling and bottling of automobile oil, and it was shown that gasoline was stored in the building, and that the agent of the insurance company saw that gasoline was being used and stored in the building. It was contended at the trial below that this rider constituted a permit for the handling of gasoline within the building, and that its effect was to remove gasoline from the prohibited articles warranty, and that the quantity of gasoline, if greater than used*at the time of the issuance of the permit, brought this question into the increased hazard class. The trial court took this view of the case, and we think properly so. The agent of the insurance company knew that the rider permitted the use of gasoline, at least to some extent, and in order to show that the hazard was increased by a greater use of gasoline, as a defense to the recovery by the insured, the insurance company must under the terms of the policy, as above discussed, bring such fact 1within the knowledge and control ’ of the insured or her agent.” In so holding the court was in error. Because of the terms of the rider, a determination of the hazard involved was essential to maintaining the defense under the Prohibited Articles Warranty as well as that under the Increase of Hazard Warranty. But the two warranties are distinct. The latter is not violated unless there is increase of hazard within the knowledge and control of the insured. The former may be violated if a tenant keeps the prohibited article on the premises, even if this was done without the knowledge and control of the insured. Liverpool & London Ins. Co. v. Gunther, 116 U. S. 113,128,129; Gunther v. Liverpool & London & Globe Ins. Co., 134 U. S. 110,116. Compare Imperial Fire ST. PAUL F. & M. INS. CO. v. BACHMANN. 117 112 Opinion of the Court. Ins. Co. v. Coos County, 151 U. S. 452, 463, 464. The rider attached to the policy altered the prohibition against gasoline only to the extent of permitting it to be kept and used for the purpose of bottling automobile oils, or for “ other mercantile purposes not more hazardous.” The court could not say as a matter of law whether the business of operating moonshine stills was or was not more hazardous than that of bottling automobile oils. Compare Royal Exch. Assur. of London v. Thrower, 246 Fed. 768, 772; Phoenix Assur. Co. v. Franklin Brass Co., 58 Fed. 166, 171; Schaffer v. Hampton Ins. Co., 235 N. W. 618. If it was more hazardous, the presence of the gasoline constituted a violation of the warranty. The question should have been submitted to the jury. It is urged on behalf of the respondent that the Insurance Company is not in a position to complain of this error. Stress is laid on the circumstance that in its specifications of defense the Company alleged knowledge and control by the insured of the presence of the gasoline and the operation of the stills; and it is argued that the parties are bound by the issue as thus joined. But the pleading set forth the Prohibited Articles Warranty and asserted a defense under it. Any additional matter, which might by implication be read as an attempted construction of the warranty, is to be regarded as surplusage. Compare Lawrence v. Hyde, 77 W. Va. 639, 643; 88 S. E. 45; Lohr v. Wolfe, 71 W. Va. 627, 628; 77 S. E. 71; Jones v. Sanitary District, 265 Ill. 98, 100, 101; 106 N. E. 473; Hall v. Spaulding, 42 N. H. 259, 262. When the defendant later sought instructions that proof of knowledge and control by the insured was not essential to establishment of the defense, the plaintiff made no effort to show that it had been prejudiced. A more serious difficulty is that the defendant did not itself seek proper instructions. The burden was upon 118 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. it to prove that the occupancy was not one to which the gasoline permit extended. Compare Logan v. Provident Savings Life Assurance Society, 57 W. Va. 384, 390; 50 S. E. 529. Yet it presented no request that the jury be instructed as to the meaning of the rider. Nor did it request an instruction that the jury find whether the occupancy at or before the time of the fire was more hazardous than that of bottling automobile oils. Its request was merely that the jury be charged that the plaintiff could not recover if at and prior to the time of the fire substantial quantities of gasoline were being kept on the premises “ either for the purpose of operating moonshine stills or for any other purpose not permitted by the policy.” Thus, it requested the court to hold as a matter of law that operating moonshine stills was outside the scope of the permitted occupancies. The court could not take judicial notice that the operation of the stills was more hazardous than bottling automobile oils or say that it was not a mercantile purpose. But the defendant’s failure to ask proper instructions does not cure the error in the instructions which were given, and excepted to. Compare Texas & Pacific Ry. Co. v. Volk, 151 U. S. 73, 78. At the plaintiff’s request the trial judge charged that “ unless the plaintiff . . . had control or knowledge of the keeping and using of such gasoline or the operation of such stills, such keeping, using and operation . . . constitute no defense”; that “the defendant by the issuance of the rider ... is estopped to avoid the policy because of the fact that quantities of gasoline were kept and used upon the premises since the said rider permitted the bottling of automobile oils which according to the uncon-tradicted evidence contained gasoline.” These instructions, while correct insofar as they bore upon the defense under the Increase of Hazard Warranty, were erroneous in respect to that under the Prohibited Articles War- WESTERN DISTRIB’G CO. v. COMM’N. 119 112 Syllabus. ranty. The fact that the defendant had incorporated errors of law in the instructions which it sought upon the second defense did not justify putting the case to the jury solely upon the first. Compare Westchester Fire Ins. Co. v. Fitzpatrick, 2 F. (2d) 651, 654; Sutherland v. Payne, 274 Fed. 360, 361; Rothe v. Pennsylvania Co., 195 Fed. 21, 25; Audubon Bldg. Co. v. F. M. Andrews & Co., 187 Fed. 254, 260. We are constrained to reverse the judgment of the Circuit Court of Appeals, with directions that the case be remanded to the District Court for further proceedings in accordance with this opinion. Reversed. Mr. Justice McReynolds thinks the judgment should be affirmed. WESTERN DISTRIBUTING CO. v. PUBLIC SERVICE COMMISSION OF KANSAS et al. APPEAL FROM THE DISTRICT COURT OF THE UNITED STATES FOR THE DISTRICT OF KANSAS. No. 337. Argued January 14, 1932.—Decided February 29, 1932. 1. Where a corporation selling natural gas locally procures its supply by agreement in interstate commerce from a pipe-line company with which it is so affiliated that the two are not at arm’s length in their dealings, the reasonableness of the interstate price is subject to be inquired into by state authority when applied to by the local company for permission to increase its local rate. Smith v. Illinois Bell Telephone Co., 282 U. S. 133. P. 123. 2. A local distributor of natural gas, in a common corporate control with an interstate pipe-line company from which it bought its supply in interstate commerce, sought to enjoin the enforcement of a local rate in a particular city which the state commission had declined to increase without proof that the interstate price was reasonable. Held: (1) Adjudications upholding the same wholesale rate in relation to other cities of the State, in suits to which the city now in question was not a party, do not make a prima facie case here. P. 125. 120 OCTOBER TERM, 1931. Argument for Appellant. 285 U.S. (2) Undenied allegations to the effect that the distributor, though it has tried, can not obtain its supply otherwise or at a lower price than from the pipe-line company; and that the same price is charged by that and other lines to other distributors, do not establish the reasonableness of the price in this case, in view of the affiliation of the two companies. P. 125. (3) In view of the relations of the two corporations, and the power implicit therein arbitrarily to fix and maintain costs, as respects the distributing company, which do not represent the true value of the service rendered, the state authority is entitled to a fair showing of the reasonableness of such costs, although this may involve a presentation of evidence which would not be required in the case of parties dealing at arm’s length and in the general and open market. P. 126. Affirmed. Appeal from a decree of the District Court of three judges, dismissing a bill to enjoin a state commission and a city from enforcing local rates for gas, alleged to have become confiscatory. Mr. Robert D. Garver, with whom Mr. Robert Stone was on the brief, for appellant. The State of Kansas, through its regulatory body, the Public Service Commission, is without authority, directly or indirectly, to fix the price which shall be charged by a pipe-line company for gas sold in interstate commerce, notwithstanding that such pipe-line company may be affiliated with the distributing company to which it sells gas by reason of the capital stock of the pipe-line company and distributing company being owned by a common holding company. It is our contention that the law, as announced by this Court, in the cases of Public Utilities Commission v. Landon, 249 U. S. 236, and Missouri v. Kansas Natural Gas Co., 265 U. S. 298, was not changed by the decision in Smith n. Illinois Bell Tel. Co., 282 U. S. 133, and that the law of this case is the same as it was at the time this Court held, in Missouri v. Kansas Natural Gas Co., supra, with respect to this same pipe-line company and this same Commission, that the WESTERN DISTRIB’G CO. v. COMM’N. 121 119 Opinion of the Court. rates of the pipe-line company were not subject to state regulation. Since that decision many of the distribution companies which were then unassociated with the pipeline company have been acquired by the holding company which owns the capital stock of the pipe line company, or its subsidiaries; and this affiliation, and the decision of this Court in the Smith case, have been considered by the Kansas Commission and the court below as changing the law previously announced by this Court, and as having authorized and empowered the Commission to determine the reasonableness of the charges of the pipe-line company engaged in interstate commerce, and to limit the distributing company in its allowable operating expense for purchased gas to the rate which the Commission so finds to be reasonable. Congress alone has the power to regulate interstate commerce; and this is true whether the company engaged in interstate commerce sells its gas to a company with which it is affiliated or not. The Cities Service Gas Company, engaged in interstate commerce, sells its gas to some distributing companies with which it is affiliated and to others with which it is not. The rule must of necessity be the same in each instance. The requirements of the Constitution, admittedly existing before affiliation, are not changed by reason thereof, and the state commission, which admits its lack of authority to proceed against the pipe-line company engaged in interstate commerce, can not indirectly accomplish the same purpose by undertaking to determine what price it should charge and by limiting affiliated distribution companies to the payment of that price. Mr. Earl H. Hatcher, with whom Mr. Charles W. Steiger was on the brief, for appellees. Mr. Justice Roberts delivered the opinion of the Court. The appellant, a West Virginia corporation, owns and operates a distribution system for natural gas in Eldo- 122 OCTOBER TERM, 1931. ' Opinion of the Court. 285 U.S. rado, Kansas. August 17, 1920, rates for supplying local consumers were fixed by order of the Court of Industrial Relations of the State of Kansas, the body then vested with authority in the premises. July 30, 1929, the company filed application with the Public Service Commission, one of the appellees, for an increase, averring that the existing rates were insufficient to produce a fair return, and asking an investigation and the establishment of such as would be just and equitable. When the order of 1920 was made the appellant was purchasing gas, delivered at the city gate, from Cities Service Gas Company, and it still obtains its supply from the same company. The current price is forty cents per thousand cubic feet, which is paid under a day-to-day verbal contract. This rate was originally established by the Public Utilities Commission of Kansas in March, 1923, but its order in that behalf was subsequently rescinded for the reason that Cities Service Gas Company is an interstate carrier and not subject to regulation by the state. The forty cent rate, therefore, is not fixed pursuant to the order or leave of any public authority. Cities Service Gas Company is the owner and operator of interstate pipe lines and sells natural gas therefrom to various distributing companies. The present corporate relation between appellant and Cities Service Gas Company is as follows: The common stock of appellant is owned by Gas Service Company, the capital stock of which is in turn owned by Cities Service Company. The common stock of Cities Service Gas Company is owned by Empire Gas & Fuel Company, a controlling interest in the capital stock of which is owned by Cities Service Company. In 1923, when the forty cent rate was put into effect, the distributing companies, including the appellant, were not affiliated with the pipe-line company, but in the following years Gas Service Company has acquired control of the appellant and other local distributing com- WESTERN DISTRIB’G CO. v. COMM’N. 123 119 Opinion of the Court. panies which are dependent on the pipe line for their supply of natural gas. Appellant submitted to the Commission a valuation of the property on which a fair return should be earned. The showing was that there were no net earnings on this value, but an annual loss of approximately $40,000. The total expenses of operation and maintenance of the property for the year ending November 30, 1930, according to the evidence, were $283,049.07, of which far the largest item, $176,260.32, was for gas purchased. In view of these facts, the Commission insisted that in order to determine the reasonableness of the requested increase in retail charges, inquiry must be made as to the propriety of the forty cent rate. The company declined to make any showing with respect thereto, claiming that the Commission was bound to allow it as a proper element of cost in fixing the new retail scale. The Commission dismissed the proceeding. The appellant then filed a bill in the District Court to restrain the further enforcement of the order of August 17, 1920, or the existing rates thereby established, and to enjoin the Commission from interfering with the charging of reasonable rates until such time as some lawful authority, acting in conformity with law, should approve a new schedule, and to prevent the Commission, its members and representatives, from instituting or prosecuting in any court or tribunal proceedings to litigate any of the matters involved in the hearings before the Commission. After answer by the appellees the matter was heard before a court of three judges, constituted as required by § 266 of the Judicial Code, on the pleadings and proofs submitted, and the bill was dismissed on the ground that the appellant had not exhausted its remedy before the Commission. Thereupon this appeal was taken. First. The appellant asserts that the rate charge by the pipe-line company for gas delivered at the city gate is an interstate rate and not the subject of regulation by any 124 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. state authority. The soundness of this contention is conceded by the appellees. But the appellant argues that any inquiry by the state commission into the reasonableness of this charge amounts to an indirect attempt at regulation, an effort on the part of the state to circumvent the paramount federal authority over interstate commerce, and hence an attempt to do by indirection what is forbidden by the Federal Constitution. The appellees disclaim any intent to control rates charged for interstate service, but say that as the Commission’s function is to set reasonable rates for the intrastate service rendered by appellant in the city of Eldorado, this necessarily requires a determination of the question whether the price paid for the gas distributed is fair and reasonable. To this end the Commission insists upon its authority to make such investigation as will satisfy it upon this point. Having in mind the affiliation of buyer and seller and the unity of control thus engendered, we think the position of the appellees is sound, and that the court below was right in holding that if appellant desired an increase of rates it was bound to offer satisfactory evidence with respect to all the costs which entered into the ascertainment of a reasonable rate. Those in control of the situation have combined the interstate carriage of the commodity with its local distribution in what is in practical effect one organization. There is an absence of arm’s length bargaining between the two corporate entities involved, and of all the elements which ordinarily go to fix market value. The opportunity exists for one member of the combination to charge the other an unreasonable rate for the gas furnished and thus to make such unfair charge in part the basis of the retail rate. The state authority whose powers are invoked to fix a reasonable rate is certainly entitled to be informed whether advantage has been taken of the situation to put an unreasonable burden WESTERN DISTRIB’G CO. v. COMM’N. 125 119 Opinion of the Court. upon the distributing company, and the mere fact that the charge is made for an interstate service does not constrain the Commission to desist from all inquiry as to its fairness. Any other rule would make possible the gravest injustice, and would tie the hands of the state authority in such fashion that it could not effectively regulate the intrastate service which unquestionably lies within its jurisdiction. The principles applicable in a rate investigation, where similar corporate relationship existed, were recently announced in Smith v. Illinois Bell Telephone Co., 282 U. S. 133, 152-153, and no purpose would be served by repetition or elaboration of what was there said. Second. It was shown that in proceedings in the state courts of Kansas and in the United States District Court for Kansas, the forty cent wholesale rate had quite recently been held reasonable with respect to sales at the gates of other cities. The decisions in those cases were put in evidence before the Commission, and the contention is that these constituted at least a prima facie case for the propriety of the same rate at the city gate of Eldorado. The city, though a party to this proceeding, was not such in the cases mentioned. Obviously it is not bound by the findings made with respect to other cities and towns. Nor is the Commission so bound, for it is admitted that the reasonableness of the rate as respects Eldorado was not in issue in the earlier cases. How much weight the Commission should give to these adjudications we need not here determine. What we do hold is that they do not make a prima fade case in support of the charge under attack. Third. The appellant adverts to the fact that in its bill of complaint are included a number of averments not denied by the appellees. In brief these are that the company does not own or produce any natural gas; that the only source of supply for the city of Eldorado is the main 126 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. of the Cities Service Gas Company; that no supply at a lower price can be obtained from any other source; that the same rate is being charged to other distributing companies along the lines of the Cities Service Gas Company, and was being charged by another independent pipe line to another city; that an ineffectual effort had been made to find local gas available to Eldorado; and that appellant had attempted to get a lower rate from Cities Service Gas Company but could not do so. It is urged that as these averments were uncontradicted they constitute, when taken with the facts previously stated, a prima facie case for the reasonableness of the rate charged. This might well be true were it not for the fact of unity of ownership and control of the pipe line and the distribution system. An averment of negotiation and effort to procure a reduction in the wholesale rate means little in the light of the fact that the negotiators are both acting in the same interest,—that of the holding company which controls both. All of these facts so averred in the pleadings would be far more persuasive with respect to the propriety of the rate if the parties were independent of each other and dealing at arm’s length. Where, however, they constitute but a single interest and involve the embarkation of the total capital in what is in effect one enterprise, the elements of double profit and of the reasonableness of inter-company charges must necessarily be the subject of inquiry and scrutiny before the question as to the lawfulness of the retail rate based thereon can be satisfactorily answered. Fourth. The argument is made that the proofs demanded by the Commission will involve an extensive and unnecessary valuation of the pipe-line company’s property and an analysis of its business, and that this burden should not be thrown upon appellant. Whether this is so we need not now decide. It is enough to say that in view of the relations of the parties, and the power implicit GALVESTON WHARF CO. v. RY. CO. 127 119 Syllabus. therein arbitrarily to fix and maintain costs as respects the distributing company which do not represent the true value of the service rendered, the state authority is entitled to a fair showing of the reasonableness of such costs, although this may involve a presentation of evidence which would not be required in the case of parties dealing at arm’s length and in the general and open market, subject to the usual safeguards of bargaining and competition. The judgment of the court below was right and it is Affirmed. GALVESTON WHARF CO. et al. v. GALVESTON, HARRISBURG & SAN ANTONIO RAILWAY CO. ET AL. CERTIORARI TO THE SUPREME COURT OF TEXAS. No. 411. Argued January 22, 25,1932.—Decided March 14, 1932. 1. Evidence held sufficient to support a finding by a state court that goods constituting a through water-and-rail shipment had been delivered by the water carrier, a steamship company, to a wharf company, by being unloaded on the wharf company’s pier and left there under the full control of the wharf company, to be handled and forwarded by it at its own convenience. P. 132. 2. A through bill of lading issued by the initial carrier upon an interstate shipment, governs the entire transportation and fixes the obligations of all participating carriers in so far as its terms are applicable and valid. P. 134. 3. A clause in a bill of lading issued by the initial carrier for a through shipment, providing that the carrier in possession of the goods should be liable as at common law for any loss or damages,—held applicable to a wharf company, an intermediate common carrier furnishing a necessary link in the transportation, although not named in the bill. P. 135. 4. The wharf company could not escape liability in such case upon the grounds (a) that, by arrangement with the connecting carrier to which it was to deliver the goods it was but the agent of the latter (Missouri Pac. R. Co. v. Reynolds Co., 268 U. S. 366, distinguished,) 128 OCTOBER TERM, 1931. Argument for Petitioners. 285 U.S. or (b) that, under its own filed tariff, it could be held only for negligence. Pp. 135*-136. Affirmed. Certiorari, 284 U. S. 608, to review a judgment reversing that of the Court of Civil Appeals of Texas, and affirming that of a District Court of the State holding the petitioner Wharf Company liable for goods that were burned in transitu while on its pier. Mr. George 8. Wright, with whom Messrs. Alex F. Weisberg and Rhodes S. Baker were on the brief, for petitioners. At the time of the damage the shipment was in the possession of the steamship company and not in the possession of the wharf company. The holding of the Supreme Court of Texas to the effect that at the time of the fire the wharf company held the shipment as a connecting carrier is in direct conflict with the holding in Missouri Pacific Ry. Co. v. Reynolds-Davis Grocery Co., 268 U. S. 366. Texas & Pac. Ry. Co. v. Scoggins & Brown, 90 S. W. 321; St. Louis S. W. Ry. Co. v. Jackson, 118 S. W. 853; Chicago, R. I. & G. Ry. Co. v. Young & Ball, 107 S. W. 127; Rio Grande Ry. Co. N. Krajt & Medero, 212 S. W. 981; Lancaster v. Hollebecke, 235 S. W. 1115; Texas & Pac. Ry. Co. v. Henson, 132 S. W. 1118; Hooper n. Chicago & N. W. Ry. Co., 9 Am. Rep. 443; Wilbur v. Wabash Ry. Co. 129 S. W. 484; Atlanta Nat. Bank v. Southern Ry. Co., 106 Fed. 623. If at the time of the fire the shipment was in possession of the wharf company, the provisions of its tariff filed with the Interstate Commerce Commission were a part of the contract between it and the carriers named in the bill of lading. The provision of such tariff to the effect that the wharf company should not be liable for damages to the shipment except for its negligence is valid, and as all claims of negligence were abandoned, the wharf com GALVESTON WHARF CO. v. RY. CO. 129 127 Argument for Petitioners. pany was not liable for the loss. Neither the steamship company, named in the bill of lading as an intermediate carrier, nor the railway company, named in the bill of lading as the delivering carrier, was required to use the services of the wharf company in transferring shipments from the steamship company’s docks to the cars of the railway company. They could have made arrangements for motor trucks or some other means of transportation to transfer such shipments. The shipper named in the bill of lading made a contract with the steamship company and the railway company under the terms of which those carriers agreed to transport his property from New York to El Paso. The shipper did not make any contract with the wharf company. The wharf company filed with the Interstate Commerce Commission tariffs covering certain services it was willing to render the steamship company and the railway company at Galveston. These tariffs were furnished to the steamship company and the railway company prior to the shipment in this case. When the carrier named in the bill of lading employed the wharf company to render the loading and switching service, such employment was under this tariff, and the tariff provision limited the liability to negligence. Boston de Maine R. Co. v. Hooker, 233 U. S. 97; Chicago, R. I. & P. Ry. Co. v. Cramer, 233 U. S. 490; Cau v. Texas Pac. Ry. Co., 194 U. S. 427; Arthur v. Texas de Pac. Ry. Co., 204 U. S. 506. The principle is the same whether the limitation of the carrier’s liability is contained in a tariff forming part of a switching contract or in a contract in the form of a bill of lading. The fact that the bill of lading, to which the wharf company was not a party, does not contain any provision limiting the liability of the carrier therein named to a liability for negligence does not affect the validity of the 137818°—32----9 130 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. provision of the contract between the carriers named in the bill of lading and the wharf company. Mr. John P. Bullington for the Galveston, Harrisburg & San Antonio Ry. Co., respondent. Mr, Roscoe H. Hupper, with whom Mr. Burton H. White was on the brief, for the Mallory Steamship Co., respondent. Mr. Chief Justice Hughes delivered the opinion of the Court. The American Grocery Company and others brought this action against the Mallory Steamship Company, the Galveston Wharf Company, and the Galveston, Harrisburg & San Antonio Railway Company to recover the value of a carload of sardines destroyed by fire at Galveston, Texas, while en route to El Paso in that State. The goods had been shipped from Maine to El Paso on a through bill of lading issued by the Seaport Navigation Company and describing the route as “ Mallory, Southern Pacific.” The Mallory Steamship Company had transported the goods from New York to Galveston, and at the time of the fire the goods were on the pier which that company had leased from the Galveston Wharf Company. The latter company, a chartered transportation company not named in the bill of lading, owned, in addition to certain piers, railroad trackage from these piers to connections with railroads running out of Galveston, including that of the Galveston, Harrisburg & San Antonio Railway Company, that being the Southern Pacific line described in the bill of lading as the delivering carrier. There was no attempt to prove negligence on the part of any of the defendants. The District Court, a jury being waived, held that the goods had been delivered by the Mallory Steamship Company to GALVESTON WHARF CO. v. RY. CO. 131 127 Opinion of the Court. the Galveston Wharf Company, that the latter was in possession of the goods as a common carrier, and that at the time of the loss they had not been delivered to the Galveston, Harrisburg & San Antonio Railway Company. The judgment, entered in the District Court against the Wharf Company, was reversed by the Court of Civil Appeals which directed judgment against the Railway Company upon the ground that the Wharf Company was acting as a transfer agent for the Railway Company and was not liable for the loss. 13 S. W. (2d) 983. The Supreme Court of the State reversed the judgment of the Court of Civil Appeals and affirmed that of the District Court. 25 S. W. (2d) 588, 36 S. W. (2d) 985. This Court granted a writ of certiorari. The Wharf Company, petitioner, in the view that the question of the liability of carriers under an interstate bill of lading is governed by the Federal decisions,1 contends that the state court erred in holding (1) that the possession of the shipment at the time of the fire had passed from the Steamship Company to the Wharf Company, (2) that the Wharf Company had possession as a connecting carrier and not as agent of the railroad, carrier named in the bill of lading, and (3) that the Wharf Company was liable as insurer of the shipment when its filed tariff provided that it should not be liable save for its negligence. The American Grocery Company, plaintiff in the action (which joined in the Wharf Company’s petition for certiorari) contends that it is entitled to recover “ from some one of the three defendants in the trial court ” and that it is the Steamship Company which should be held liable. The Railway Company, respondent, also urges that there had been no delivery of the goods by the Steamship Company, and further that, if 1 Southern Ry. Co. v. Prescott, 240 U. S. 632, 636; Georgia, Florida & Alabama Ry. Co. v. Blish Milling Co., 241 U. S. 190, 194, 195; Missouri Pacific R. Co. v, Reynolds-Davis Grocery Co., 268 U. S. 366. 132 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. such delivery had been made, the Wharf Company held the goods as common carrier and not as the Railway Company’s agent, and that the tariff of the Wharf Company was inapplicable. First. The Court of Civil Appeals, while reversing the judgment of the District Court, did not disturb the finding that the Steamship Company had delivered the goods to the Wharf Company, but on the contrary reaffirmed it. The Supreme Court held that this finding was supported by evidence and reached its conclusion upon that basis. The petitioners insist that the three courts were in error and that the finding is opposed to the undisputed evidence. We are unable to agree with this contention. The tracks of the Wharf Company were on the pier and there the Steamship Company and the Wharf Company had adjoining offices. The Wharf Company had its own force of men on the pier to handle the shipments for rail transportation. It was the practice to have cars spotted conveniently to receive the shipments according to the routing. The Steamship Company placed the goods on the pier in convenient locations where the Wharf Company, which according to custom had already received the billing and had full information of the shipments, could load them into the waiting cars.2 In the instant 2 The testimony of the General Manager of the Wharf Company contains the following: “It is our privilege to begin loading as soon as it is put on the wharf, unless a hold order is put on some specific shipment, which happens only occasionally. So that as soon as freights were deposited on the wharf by the forces of the Mallory, there was nothing to prevent our forces from immediately picking it up and trucking it to the cars. That was all left to the judgment and discretion of the Galveston Wharf Company’s supervisor of forces on the docks. It was not a matter within the control of the Mallory Line. . . . As the freights were placed on the wharf by the Mallory Line, it was purely a matter of the Wharf Company to determine just how and when to load the particular shipment in the usual manner. ... It is the Mallory Line’s usual performance to deposit it on the floor, and it is picked up and loaded into the cars by the Gal GALVESTON WHARF CO. v. RY. CO. 133 127 Opinion of the Court. case, it appeared that the ship had arrived early in the morning (January 13, 1926) and had been fully discharged by five-thirty o’clock in the afternoon; that, as the goods were unloaded, they were put in the usual manner in suitable locations for the picking up and loading into cars by the Wharf Company; that out of 1081 tons so discharged on that day and put in the designated places, the Wharf Company had actually loaded into cars all but 379 tons, and that carloads similarly routed, and placed in approximately the same location as the shipment here involved, had been so loaded. There was evidence that the latter shipment had been suitably placed on the wharf before four o’clock in the afternoon, and was ready by that time for loading by the Wharf Company and completely at its disposal,* 3 but the Wharf Com- veston Wharf Company. As to the particular time it is picked up, that is wholly in control of the Wharf Company. After it had been placed, and it was 0. K.’d to go, we were at liberty to pick it up and send it forward at any time we got ready, and it was not necessary for us to ask permission of the Mallory Line about it. Unless there is some special feature connected with it, as a hold order, the usual course is to load it and get rid of it. So far as the actual physical handling of the shipment from the time it is put, and assuming that it is ready to go, that is under the control of the Wharf Company.” 3 There was testimony by the chief dock clerk of'the Steamship Company as follows: “ After we placed the shipment in the designated territory, that is all we have to do with it. If we have broken cases, we set them aside, and the Mallory Line coopers come along and put them into condition, and we are through with it, and it is ready for the Wharf Company to load out. . . . Some of these packages were broken, not a large amount. They were put into condition that day. I would say that this particular carload of sardines was ready to be put on the cars before 4:00 o’clock. After that time we had nothing to do with it. The Mallory Line was through with it. As to whether any of the representatives of the Wharf Company or railroad company had examined this shipment, I say they had. When the damaged cases were recoopered, they put the 0. K. mark on them after we recoopered them.” 134 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. pany stopped work about six-thirty o’clock without loading it, and that it was burned that night. Questions are raised with respect to notice of readiness for loading and as to the checking of the shipment, but it cannot be said that the testimony is so clear and definite on these subjects as to preclude a finding of delivery to the Wharf Company. No receipt had been given by the Wharf Company, but the state court found, upon evidence, that the Steamship Company did not require the Wharf Company to give receipts before it removed shipments from the wharf and that receipts were often given a considerable time after such removal. On points where the testimony permitted conflicting inferences, the state court was entitled to reach its conclusion that the shipment had been placed under the complete control of the Wharf Company to be handled according to its own convenience and hence should be deemed to have been delivered to the Wharf Company.4 Second. The Wharf Company did not dispute that it was a common carrier. As such, it had facilities and rendered service. It is also manifest that it received the goods for transportation to the connection with the Railway Company that was to take them to destination. This service of the Wharf Company was that of a common carrier furnishing a necessary link in the transportation under the through bill of lading. The Wharf Company was thus in fact and in law a connecting carrier, and that it was not named in the bill of lading is unimportant. The bill of lading, required to be issued by the 4 See Pratt n. Railway Co., 95 U. S. 43, 46; Merriam v. Hartford & New Haven R. Co., 20 Conn. 354; Converse v. Norwich & New York Transportation Co., 33 Conn. 166; Washburn Crosby Co. v. Boston & Albany R. Co., 180 Mass. 252; 62 N. E. 590; Texas & Pacific Ry. Co. v. Clayton, 173 U. S. 348; Texas & Pacific Ry. Co. v. Reiss, 183 U. S. 621; Texas & Pacific Ry. Co. v. Callender, 183 U. S. 632; Oregon-Washington R. & N. Co. v. McGinn, 258 U. S. 409, 413. GALVESTON WHARF CO. v. RY. CO. 135 127 Opinion of the Court. initial carrier upon an interstate shipment, 1 governs the entire transportation and thus fixes the obligations of all participating carriers to the extent that the terms of the bill of lading are applicable and valid.’ Georgia, Florida & Alabama Ry. Co. v. Blish Milling Co., 241 U. S. 190, 194, 195. See, also, Kansas City Southern Ry. Co. v. Carl, 227 U. S. 639, 648; Great Northern Ry. Co. v. Galbreath Cattle Co., 271 U. S. 99, 102. Under such a bill of lading, each connecting carrier may be sued for damages occurring while the goods are in its possession, and its liability ‘is fixed by the applicable valid terms of the original bill.’ It may not vary the terms of the through bill. Missouri, Kansas & Texas Ry. Co. v. Ward, 244 U. S. 383, 387; Texas & Pacific Ry. Co. v. Leatherwood, 250 U. S. 478, 480; Cobb v. Brown, 193 Fed. 958. In this instance, the bill of lading provided that the carrier in possession of the property described “ shall be liable as at common law for any loss thereof or damage thereto, except as hereinafter provided.” The Wharf Company became subject to this liability and did not bring itself within any of the exceptions stated in the bill. The Wharf Company was not entitled to escape this liability upon the ground that it was acting as the agent of the Railway Company. The case of Missouri Pacific R. Co. v. Reynolds-Davis Grocery Co., 268 U. S. 366, upon which the petitioners rely, is not in point. There, the Missouri Pacific, the delivering carrier named in the bill of lading, had employed the St. Louis-San Francisco to perform a switching service in making the required delivery at the place of destination. The court held that the Missouri Pacific was the delivering carrier and was liable as such; it could not defeat that liability by the employment of an agent for service at the terminal. In the present case, the Wharf Company was the connecting carrier in possession of the goods at the time of the loss and was responsible accordingly. 136 OCTOBER TERM, 1931. Syllabus. 285 U.S. Third. Equally unavailing is the Wharf Company’s defense based upon the provision of its filed tariff, that it should be liable only for negligence. The respondent, the Railway Company, insists that this limitation was by its terms applicable only in connection with the rate for the handling of traffic after it had been loaded into cars and that another rate without such limitation related to the service in loading the goods from the wharf into the cars. Apart from this contention, which is not without force, it is sufficient to say that the attempted limitation of liability in any event did not affect the plaintiffs who were entitled to the transportation of the goods under the conditions set forth in the through bill of lading pursuant to which the Wharf Company was performing its service. As we have said, the Wharf Company was not entitled to vary the liability, as determined by the terms of the through bill, by its arrangements with the Railway Company. Judgment affirmed. BURNET, COMMISSIONER OF INTERNAL REVENUE, v. LEININGER. CERTIORARI TO THE CIRCUIT COURT OF APPEALS FOR THE SIXTH CIRCUIT. No. 426. Argued February 16, 1932.—Decided March 14, 1932. 1. Findings of fact of the Board of Tax Appeals, when not challenged as unsupported by evidence, are conclusive on review. P. 138. 2. A husband who was a member of a partnership agreed with his wife that she should be an “ equal partner ” with him in his interest in the company and should share equally with him the profits and losses. Held: (1) The agreement did not make the wife a member of the partnership without the consent of the other partners, but amounted at most to an equitable assignment of one-half of what her husband should receive from the partnership, she in turn agreeing to make good to him one-half of the losses he might sustain by reason of his membership in the firm. P. 139. BURNET v. LEININGER. 137 136 Argument for Respondent. (2) The husband’s distributive share of the net income of the partnership was taxable to him individually under the Revenue Acts of 1918 and 1921. Lucas v. Earl, 281 U. 8. 111. P. 141. (3) The wife’s interest being derived from and dependent upon the husband’s distributive share, taxation of the whole as his income is not unconstitutional. Hoeper v. Tax Commission, 284 U. 8. 206, distinguished. P. 142. 51 F. (2d) 7, reversed. 19 B. T. A. 621, affirmed. Certiorari, 284 U. S. 608, to review a judgment reversing an order of the Board of Tax Appeals. Mr. Claude R. Branch, with whom Solicitor General Thacher, Assistant Attorney General Youngquist, and Messrs. Sewall Key, John H. McEvers, and Wilbur H. Friedman were on the brief, for petitioner. Mr. Irwin N. Looser, with whom Messrs. Levi Cooke and George R. Beneman were on the brief, for respondent. The Board of Tax Appeals found as a fact that respondent’s wife owned the corpus which produced the income; the findings of fact made by the Board are, for the purposes of this case, conclusive. Income is taxable only to the equitable owner of the corpus which produces it. The cases upon which the Government relies involve only an assignment or attempted assignment of income in future. Such cases have no application to the facts of this one. Mitchel v. Bowers, 15 F. (2d) 287; Bing v. Bowers, 26 F. (2d) 1017, s. c., 22 F. (2d) 450. Cf. Commissioner v. Marshall Field, 42 F. (2d) 820, 822; Copland v. Commissioner, 15 B. T. A. 238, s. c., 41 F. (2d) 501, 504; Parshall v. Commissioner, 7 B. T. A. 318; Thomas v. Commissioner, 8 B. T. A. 118; Hallahan v. Commissioner, 14 B. T. A. 584. Section 218 (a) of the Revenue Acts of 1918 and 1921 merely prescribes that partnership income is taxable directly to its owners whether distributed or not. The word “ partner ” is used as synonymous with “ owner.” 138 OCTOBER TERM, 1931. Opinion of the Court. 285U.S. The rule heretofore discussed applies where the assigned corpus is part of a partnership interest. The construction urged by petitioner is unconstitutional. 0’MdLley-Keyes v. Eaton, 24 F. (2d) 436, 438; dissenting opinion in Mitchel v. Bowers, 15 F. (2d) 287, 289-292; Hoeper v. Tax Commission, 284 U. S. 206. Mr. Chief Justice Hughes delivered the opinion of the Court. The respondent sought a redetermination of deficiencies in income taxes for the years 1920 to 1923. The question related to the income earned on respondent’s share in a partnership known as the Eagle Laundry Company, doing business in Cleveland, Ohio. By virtue of an agreement made with his wife, respondent insisted that she was ‘ a full equal partner with him in his interest in the partnership ’, and that each should return and pay tax upon one-half of the income attributable to that interest. The Commissioner determined that respondent was taxable upon the whole of the income earned on his share in the partnership, and the Board of Tax Appeals affirmed that decision. 19 B. T. A. 621. The Circuit Court of Appeals reversed the order of the Board, 51 F. (2d) 7, and this Court granted a writ of certiorari. The question arises under § 218 (a) of the Revenue Acts of 1918 and 1921 (40 Stat. 1070; 42 Stat. 245) which provided : “ That individuals carrying on business in partnership shall be liable for income tax only in their individual capacity. There shall be included in computing the net income of each partner his distributive share, whether distributed or not, of the net income of the partnership for the taxable year . . .” There is no challenge to the findings of fact made by the Board of Tax Appeals as being unsupported by evidence, and they must be treated as conclusive. Phillips v. BURNET v. LEININGER. 139 136 Opinion of the Court. Commissioner, 283 U. S. 589, 599, 600. Upon these findings, which are set forth in the margin,1 it cannot be maintained that the agreement between the respondent and his wife made her a member of the partnership. That result could not be achieved without the consent of the 1 The findings of the Board of Tax Appeals are as follows: “In 1898 a partnership known as Eagle Laundry Company was organized by petitioner and one M. G. Monaghan, each owning a one-half interest. In 1904 Monaghan died and his wife, Mary T. Monaghan, succeeded to his interest in the firm and on the books of the company. In 1920 Mary T. Monaghan transferred by bill of sale her interest to her children. The entire Monaghan interest was thereafter carried on the books in the name of Marcus A. Monaghan. The partnership returns for the years 1921, 1922 and 1923 filed by Eagle Laundry Company disclose the partners to be petitioner and M. T. Monaghan and the income to be distributable one-half to each. Each of the three children of Mary T. Monaghan, however, returned a proportionate part of the income for taxation. “ During the latter part of 1920 a written agreement confirmatory of a pre-existing oral agreement, was entered into between petitioner and his wife, wherein it was acknowledged that petitioner’s wife had been and was a full equal partner with him in the interest in the Eagle Laundry Company, entitled to share equally in the profits and obligated to bear equally any losses. The contract was effective from the beginning of 1920. The written agreement was not produced, probably having been lost in a fire at the plant. The fact of this transfer was communicated to Marcus A. Monaghan, who represented the owners of the other one-half interest in the Eagle Laundry Company. The Leininger interest always stood in the name of C. P. Leininger on the partnership books but Mrs. C. P. Leininger returned one-half of the profits of the Leininger interest for taxation. “Petitioner and his wife maintained prior to and throughout the period here involved a joint bank account on which each could draw unrestrictedly. The profits received from the partnership were deposited in this account by Leininger, no checks on the partnership being drawn to the wife. After the execution of the agreement the wife also maintained a small personal account in which were deposited checks received on account of earnings on her personal investments. Mrs. Leininger took no part in the management of the business and made no contribution to its capital. There was never any formal accounting between petitioner and his wife.” 140 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. other partner or partners,2 and there is no finding of such consent. The mere communication of the fact that the agreement had been made was not enough. It does not appear that there was any attempt to change the ownership of the partnership assets or the control of the partnership enterprise. It was the husband’s interest that was the subject of the agreement.3 His wife was to be an ‘ equal partner with him ’ in that interest. The business of the firm was continued as before. Complying with the statute,4 the partnership returns, verified by the husband for the years in question, stated that the names of the partners were 1 C. P. Leininger and M. T. Monaghan, each owning one-half.’ 19 B. T. A. at p. 623. The ‘ Leininger interest ’ remained in the name of the respondent on the partnership books. His wife took no part in the management of the business and made no contribution to its capital. The profits received from the partnership went to the respondent, no checks on the firm being drawn to the wife. Upon the facts as found, the agreement with Mrs. Leininger cannot be taken to 2 Channel v. Passiti, 16 Ohio 166; Pagel v. Creasy, 6 Ohio App. 199, 207, 208; McNamara v. Gaylord, 3 Ohio Fed. Dec. 543, 546, 1 Bond 302; Bank v. Carrollton Railroad, 11 Wall. 624, 628, 629; Burnett v. Snyder, 76 N. Y. 344, 349; Cohan v. Commissioner, 39 F. (2d) 540, 542. 8 See Nixon n. Nash, 12 Ohio St. 647, 650; Bank v. Carrollton Railroad, supra; Case v. Beauregard, 99 U. S. 119, 124; Burnett v. Snyder, supra; Rockajellow v. Miller, 107 N. Y. 507, 510; 14 N. E. 433; Mitchel v. Bowers, 15 F. (2d) 287, 288; Cohan v. Commissioner, supra; Harris v. Commissioner, 39 F. (2d) 546, 547. 4 Section 224 of the Revenue Acts of 1918 and 1921 (40 Stat. 1074, 42 Stat. 250) provided: “ That every partnership shall make a return for each taxable year, stating specifically the items of its gross income and the deductions allowed by this title, and shall include in the return the names and addresses of the individuals who would be entitled to share in the net income if distributed and the amount of the distributive share of each individual. The return shall be sworn to by any one of the partners.” BURNET v. LEININGER. 141 136 Opinion of the Court. have amounted to more than an equitable assignment of one-half of what her husband should receive from the partnership, she in turn agreeing to make good to him one-half of the losses he might sustain by reason of his membership in the firm. The respondent urges that the assignment to his wife was of one-half of the ‘ corpus ’ of his interest and that this 1 corpus ’ produced the income in question. The characterization does not aid the contention. That which produced the income was not Mr. Leininger’s individual interest in the firm, but the firm enterprise itself, that is, the capital of the firm and the labor and skill of its members employed in combination through the partnership relation in the conduct of the partnership business. There was no transfer of the corpus of the partnership property to a new firm with a consequent readjustment of rights in that property and management. If it be assumed that Mrs. Leininger became the beneficial owner of one-half of the income which her husband received from the firm enterprise, it is still true that he, and not she, was the member of the firm and that she had only a derivative interest. The statute dealt explicitly with the liability of partners as such. Applying to this case, the statute provided that there should be included in computing the net income of Leininger his distributive share of the net income of the partnership. That distributive share, as he himself stated in his return on behalf of the partnership, was one-half. In view of the clear provision of the statute, it cannot be said that Leininger was required to pay tax upon only a part of this distributive share because of the assignment to his wife. The case of Lucas v. Earl, 281 U. S. Ill, is analogous. There the husband made a contract with his wife by which his salary and fees were to be “ received, held, taken and owned ” by them as joint tenants. The Court recognized that a forcible argument 142 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. was presented “ to the effect that the statute seeks to tax only income beneficially received, and that taking the question more technically the salary and fees became the joint property of Earl and his wife on the very first instant in which they were received.” But the case was deemed to turn on the import and reasonable construction of the taxing act. “ There is no doubt ” said the Court, “ that the statute could tax salaries to those who earned them and provide that the tax could not be escaped by anticipatory arrangements and contracts however skilfully devised to prevent the salary when paid from vesting even for a second in the man who earned it. That seems to us the import of the statute before us and we think that no distinction can be taken according to the motives leading to the arrangement by which the fruits are attributed to a different tree from that on which they grew.” Id., pp. 114, 115. This ruling was not disturbed by Poe v. Seaborn, 282 U. S. 101, which pointed out the distinction. Id., p. 117. We find no reason to doubt the validity of the tax. The Congress, having the authority to tax the net income of partnerships, could impose the liability upon the partnership directly, as it did under the Revenue Act of 1917 (40 Stat. 300, 303), or upon the ‘ individuals carrying on business in partnership ’, as in the statutes here involved. The Congress could thus tax the distributive share of each partner as such, as in Lucas v. Earl, supra, it taxed the salary and fees of the person who earned them. A different situation was presented in Hoeper v. Tax Commission of Wisconsin, 284 U. S. 206, where the question related to the earnings of the wife and the income which she received from her separate estate. For that which thus belonged to her the Court held that her husband could not. be taxed. In the instant case, the right of the wife was derived from the agreement with her husband and ATLANTIC COAST LINE v. TEMPLE. 143 136 Opinion of the Court. rested upon the distributive share which he had, and continued to have, as a member of the partnership. The decree of the Circuit Court of Appeals is reversed and the order of the Board of Tax Appeals affirmed. Circuit Court of Appeals reversed. Board of Tax Appeals affirmed. ATLANTIC COAST LINE RAILROAD CO. v. TEMPLE, ADMINISTRATRIX. CERTIORARI TO THE SUPREME COURT OF SOUTH CAROLINA. No. 453. Argued February 17, 18, 1932.—Decided March 14, 1932. Evidence touching the cause of the derailment of a train held insufficient to warrant a finding of negligence on the part of the railroad company. P. 147. 165 S. C. 201; 163 S. E. 644, reversed. Certiorari, 284 U. S. 611, to review the affirmance of a judgment for damages in an action under the Federal Employers’ Liability Act. Messrs. Thomas W. Davis and Douglas McKay for petitioner. Messrs. John F. Williams and R. E. Whiting for respondent. Mr. Chief Justice Hughes delivered the opinion of the Court. Judgment recovered by plaintiff (respondent here), in an action under the Federal Employers’ Liability Act for the death of her intestate, was affirmed by the Supreme Court of the State. This Court granted a writ of certiorari. The question is whether there was sufficient 144 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. evidence of negligence on the part of defendant to justify the submission of the case to the jury. Plaintiff’s intestate was employed by defendant as locomotive engineer of a train running between Augusta, Georgia, and Sumter, South Carolina, in the early morning of May 20, 1921. At a point near Augusta, and about one and three-tenths miles north of a station called Beech Island, the train was derailed, the engine overturned, and the engineer killed. The accident took place on the line of the Charleston & . Western Carolina Railway Company over which defendant, the Atlantic Coast Line, had trackage rights, and the negligence charged was that the employees of the former company working on the roadbed had failed properly to spike and bolt one of the rails, causing it to spread. There were two witnesses for plaintiff. One of these, who lived near Beech Island station, testified that, while driving across the railroad at that station on the afternoon before the accident, he had seen section hands working on the railroad, apparently fixing a rail, at a point between that station and a gravel pit which was not far from the place of the accident. He 1 did not pay much attention ’ ; he 1 just saw them working ’. It was conclusively shown by the evidence that there was a curve on the track a little less than a mile above Beech Island station and that by reason of the contour of the land, with an intervening bluff, it was impossible for one at the crossing at the station to see the place where the wreck occurred or within at least a quarter of a mile of it. The witness knew nothing of the wreck and there was no evidence that the men whom he described had been working at the place of the accident or had any connection with the cause of the derailment. The other witness for the plaintiff had visited the scene shortly after the wreck occurred. He testified that the rail was 1 tom up ’, that spikes and bolts were 1 laying on the cross ties ’, that three or four ties were 1 taken loose ’, ATLANTIC COAST LINE v. TEMPLE. 145 143 Opinion of the Court. that there was no doubt the spikes had been 1 pulled that ‘ it was not a matter of fixing the track and leaving them out ’, that the bolts and angle bars ‘ had been removed certain ’, that there was a dent about the middle of the rail indicating that the rail ‘ had been pushed in and that one end of the rail had been 1 pulled in ’ and 1 spiked in from the outside ’ making the track 1 too narrow ’ so that a train coming from Augusta would be derailed. Thinking that1 it looked like it had been wrecked and there might be some tools/ the witness made a search, and following tracks leading to a gravel pit about fifty or sixty feet away, he found behind some bushes a crowbar used for pulling spikes and a wrench for loosening bolts; that these tools had identification marks showing that they belonged to the Southern Railway Company whose line was five or six miles distant. The testimony for defendant gave a more extended description of the conditions at the place of the wreck, confirming the testimony as to the pulling out of the spikes, the removal of the bolts and angle bar, and the displacement of the rail. One of the witnesses, a planter living at Beech Island, testified that, on examining the place of the wreck on the same morning, he found that several spikes had been drawn, that the rail had been ‘set in ’ and ‘ spiked down on the outside/—that ‘ the rail was pushed in and then driven down in new place.’ Another witness, a passenger on the wrecked train and also an inspector and special investigator for the Interstate Commerce Commission, who had made an immedi-ate examination of the track, testified that, at the point of derailment, one rail was out of place and that the angle bars had been removed from each end of the rail; that ‘ the bolts and nuts indicated that they had been removed by some one on purpose ’ and the condition of the bolts showed that they had not been stripped in any way; that there was no indication that the condition of the 137818°—32-10 146 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. track had caused the rail to spread; that an inspection of the locomotive and cars showed no defect that would contribute in any way to the derailment; that the road apart from the wreck was in 1 good condition ’; that the ties, rails and angle bars were those of 1 the regular and proper strength ’; that the inspection in that territory compared favorably with the inspection of railroads in general; that it appeared that ‘the spikes had been pulled directly upward ’ and that ‘ had they been crushed out upon the flooring of the rail, it would naturally have made a slanting pull or splintered the tie, but they were pulled out straight.’ The testimony of the roadmaster was that he had made a careful inspection of the track in question as late as five-thirty in the afternoon before the accident. The section foreman testified that the track was in good condition, that the section men had not worked at the place of the wreck for several weeks, that during the week of the accident they had not been at work within a mile and a half of that place, and that on the previous day they were working about two miles to the south; that they had no tools branded with the name of the Southern Railway Company. The section foreman of the Southern Railway Company testified that on the morning of the accident he had missed a ‘ claw bar and wrench ’ which he had put in the tool house the evening before, and that he found that the tool house had been broken into. There was evidence that these were the tools found near the wreck. Several trains passed over the track in question between the afternoon before and the time of the wreck and the engineers testified that they observed nothing unusual. Two trains passed on the way to Augusta only about one hour and a half before the accident; the point is made that there was testimony that the position and condition of the rail were such that this might be possible despite the displacement of the rail, although a train running in the EASTERN AIR TRANSPORT v. TAX COMM. 147 143 Syllabus. opposite direction (like the one in question) after the rail had worked out of alignment, would be derailed. But the argument with respect to the time when the displacement might have been effected, which in any event could not have been very long before the accident, and the contention based on the position of the nuts and bolts, are unavailing in view of the lack of evidence tending to show that the defendant was in any way responsible for the condition which caused the derailment. There are many details which it is unnecessary to review as they do not affect the essential question. It is sufficient to say that upon a careful examination of the entire record we are unable to discover any basis for a finding of negligence on the part of defendant. The motion for the direction of a verdict in its favor should have been granted. Atlantic Coast Line R. Co. v. Davis, 279 U. S. 34; Gunning v. Cooley, 281 U. S. 90; Atchison, Topeka & Santa Fe Ry. Co. v. Saxon, 284 U. S. 458. The judgment is reversed and the cause is remanded for further proceedings not inconsistent with this opinion. Reversed. EASTERN AIR TRANSPORT, INC. v. SOUTH CAROLINA TAX COMMISSION et al. APPEAL FROM THE DISTRICT COURT OF THE UNITED STATES FOR THE EASTERN DISTRICT OF SOUTH CAROLINA. No. 504. Argued February 25, 1932.—Decided March 14, 1932. A state tax of six cents per gallon on sales of gasoline was added by the seller to gasoline bought by an air-transport company for use in its planes, which traversed the State in interstate commerce and stopped at several places there, but transported no passengers or freight between those places. Held: Whether viewed as a tax on property or as an excise, the tax is not a direct burden on interstate commerce and is within the power of the State. P. 152. 52 F. (2d) 456, affirmed. 148 OCTOBER TERM, 1931. Argument for Appellant. 285 U.S. Appeal from a decree of the District Court of three judges denying an interlocutory injunction in a suit to restrain collection of a state tax. Mr. William Henry White, Jr., with whom Mr. Christie Benet was on the brief, for appellant. Appellant is engaged in the transportation of passengers exclusively by airplanes between Newark, N. J., and Miami, Florida, and, in addition, United States mail between Newark, N. J., and other points, under contract with the Post Office Department, with stops at intermediate points. Because of the state of the art of flying, and present type of airplane construction, it is impossible for an airplane to make the flight from Newark to Miami, or even a much shorter flight, without refueling at intermediate points. The necessities of appellant’s transportation instrumentalities require it, therefore, to fuel in the State of South Carolina, for without so doing, it could not complete its flight or carry the United States mail as required by its contract with the Post Office Department. The tax is imposed upon the seller, but in fact is passed along to the purchaser, and all of it is remitted by the seller to the State and used solely for state and county highways. Appellant has paid this tax on all gasoline purchased in the State, and has never been able to purchase gasoline in South Carolina except upon its payment. The amount paid is $5,000.00 or more a year. The highest court of South Carolina declares the tax to be an “ excise ” tax. And since it is the public policy of the State to rest the burden upon the ultimate consumer, the practical effect of enforcement is the same as if the law in so many words laid the tax on the ultimate consumer. Panhandle Oil Co. v. Mississippi, 277 U. S. 218. It needs little imagination to perceive that such a burden in one State, if repeated in other States through EASTERN AIR TRANSPORT v. TAX COMM. 149 147 Argument for Appellant. which appellant must operate its airplanes under its contract to carry the mails of the United States, would soon become so heavy as to be prohibitive. The burden of the tax, though imposed upon the seller by law, falls upon the consumer, and such burden is a direct burden. Texas Co. v. Brown, 258 U. S. 466; Panhandle Oil Co. v. Mississippi, 277 U. S. 218; Indian Motocycle Co. v. United States, 283 U. S. 570. A tax intended to fall, and which does fall, upon the ultimate consumer, has precisely the same effect as if laid upon use rather than sale. There can be no use without a previous sale, or purchase. The one leads to the other. In seeking to treat “ sale ” as separate and distinct from subsequent use, the court below overlooks the principle decided in such cases as Lemke v. Farmers Grain Co., 258 U. S. 50; Dahnke-Walker Milling Co. v. Bondurant, 257 U. S. 282; and Sha/er v. Farmers Grain Co., 268 U. S. 189, where the act of buying, though performed wholly within a State, was treated as a part of the interstate transaction of shipment. In those cases there was a regular and established business of buying grain in one State for shipment to another State, and the grain so bought was shipped in interstate commerce. The analogy to the present case is complete. Here the appellant buys a special type of gasoline intended for use in airplanes; it intends to use that gasoline, and does in fact use it, only in airplanes engaged exclusively in interstate commerce. The purchase is a mere incident in the course of regular and consistent interstate business. Board v. Olsen, 262 U. S. 1, 35. The exigencies of a trade determine what is essential to the business or process of interstate commerce in that trade. Thames & Mersey Ins. Co. v. United States, 237 U. S. 19. 150 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. The purchase of gasoline in South Carolina is just as indispensable to the uninterrupted conduct of appellant’s interstate business as the sales at the Chicago stock-yards—which per se were local transactions but were held by the Court in Stafford v. Wallace, 258 U. S. 495, to be so intimately associated with interstate commerce as to be a part thereof—were essential to the continuity of the flow of cattle from the ranges in the west to the markets in the east. The State of South Carolina, therefore, had no power to tax these sales, just as in Norfolk & W. R. Co. v. Pennsylvania, 136 U. S. 114, 120, the State of Pennsylvania could not impose a license tax upon a railroad company engaged in interstate commerce for the privilege of maintaining an office in the State. That an event subsequent to a sale may convert the sale into an interstate transaction is decided by Federal Trade Comm. n. Trade Assn., 273 U. S. 52. Cf. Helson v. Kentucky, 279 U. S. 245; Station WBT, Inc. v. Poulnot, 46 F. (2d) 671; U. S. Airways, Inc. v. Shaw, 43 F. (2d) 148; Mid-Continent Air Express n. Lujan, 47 F. (2d) 266; Boeing Air Transport v. Edelman, 51 F. (2d) 130; Central Transfer Co. v. Commercial Oil Co., 45 F. (2d) 400; N. J. Bell Tel. Co. v. State Board, 280 U. S. 338. Messrs. John M. Daniel, Attorney General of South Carolina, and J. Fraser Lyon wTere on the brief for appellees. Mr. Chief Justice Hughes delivered the opinion of the Court. This suit was brought to restrain the collection of a tax, imposed by the State of South Carolina, of six cents a gallon with respect to gasoline purchased by complainant in that State and used by complainant in interstate commerce. The complainant charged that the state Act EASTERN AIR TRANSPORT v. TAX COMM. 151 147 Opinion of the Court. placed a direct burden upon interstate commerce and hence was repugnant to the commerce clause of the Federal Constitution. Art. I, § 8. The District Court, composed of three judges as required by statute, denied an interlocutory injunction, 52 F. (2d) 456, and the complainant appeals to this Court. Jud. Code, § 266; U. S. C., Tit. 28, § 380. From the findings of the District Court it appears that the complainant is a Delaware corporation operating, in interstate commerce, air transport lines across the State of South Carolina; that its planes make regular stops at various points in the State but do not carry freight or passengers between such points, and practically its entire business is interstate in character; that it purchases gasoline in South Carolina for the use of its planes and that the seller adds to the price the amount of the state gasoline tax which the seller is required to pay under the Act in question, arid thus complainant has to pay six cents a gallon more than it otherwise would, the excess amounting to about $5,000 a year. The tax is described in the statute1 as a license tax, which, as applied in the instant case against the dealer, 1 Act of February 23, 1922, as amended (South Carolina Acts, 1922, pp. 835-838; 1929, pp. 107-112). Section 1 provides: “That every oil company, person, firm or corporation doing domestic or intra-state business within this State, and engaging in the business of selling, consigning, using, shipping, or distributing for the purpose of sale within this State, any gasoline or any substitute therefor, or combination thereof, for the privilege of carrying on such business shall be subject to the payment of a license tax, which tax shall be measured by and graduated in accordance vrith the volume of sales of such oil company within the State. Every such oil company shall pay to the State an amount of money equal to six (6) cents per gallon on all gasoline, combinations thereof, or substitute therefor, sold or consigned, used, shipped or distributed for the purpose of sale within the State. . . 152 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. is for the privilege of carrying on the business of selling gasoline within the State. The tax is thus imposed upon the seller and the sales in question are intrastate sales. The appellant emphasizes the fact that the tax has been construed by the Supreme Court of the State to be an excise tax and not a property tax. Gregg Dyeing Co. v. Query, 166 S. C. 117; 164 S. E. 588, decided April 13, 1931. So far as the present question is concerned, the distinction is not important. If such a license tax for the privilege of making sales within the State were regarded as in effect a tax upon the goods. sold,2 its validity could not be questioned in the circumstances here disclosed, as in that aspect the tax would be upon a part of the general mass of property within the State and hence subject to the State’s authority to tax, although the property might actually be used in interstate commerce.3 “It is elementary,” said the Court in New Jersey Telephone Co. v. Tax Board, 280 U. S. 338, 346, “ that a State may tax property used to carry on interstate commerce.” Treating the tax as an excise tax upon the sales4 does not change the result in the instant case, as the sales are still purely intrastate transactions. Superior Oil Co. v. Mississippi, 280 U. S. 390, 395. Undoubtedly, purchases of goods within a State may form part of trans- 2 Brown v. Maryland, 12 Wheat. 419, 444; Welton v. Missouri, 91 U. S. 275, 278; Kehrer v. Stewart, 197 U. S. 60, 65. 3 Coe v. Errol, 116 U. S. 517, 525; Adams Express Co. v. Ohio, 165 U. S. 194, 220; 166 U. S. 185, 218; Galveston, Harrisburg & San Antonio Ry. Co. v. Texas, 210 U. S. 217, 227; Wells, Fargo & Co. v. Nevada, 248 U. S. 165, 167; Heisler v. Thomas Colliery Co., 260 U. S. 245, 259; Sonneborn Bros. v. Cureton, 262 U. 8. 506, 509, 515; New Jersey Telephone Co. v. Tax Board, 280 U. S. 338, 346; Superior Oil Co. v. Mississippi, 280 U. S. 390, 395. 4 Panhandle Oil Co. v. Knox, 277 U. 8. 218, 222; Indian Motocycle Co. v. United States, 283 U. 8. 570, 574, 575. EASTERN AIR TRANSPORT v. TAX COMM. 153 147 Opinion of the Court. actions in interstate commerce and hence be entitled to enjoy a corresponding immunity.5 But the mere purchase of supplies or equipment for use in conducting a business which constitutes interstate commerce is not so identified with that commerce as to make the sale immune from a non-discriminatory tax imposed by the State upon intrastate dealers. There is no substantial distinction between the sale of gasoline that is used in an airplane in interstate transportation and the sale of coal for the locomotives of an interstate carrier, or of the locomotives and cars themselves bought as equipment for interstate transportation. A non-discriminatory tax upon local sales in such cases has never been regarded as imposing a direct burden upon interstate commerce and has no greater or different effect upon that commerce than a general property tax to which all those enjoying the protection of the State may be subjected. In Helson v. Kentucky, 279 U. S. 245, upon which the appellant relies, the tax was laid by Kentucky with respect to gasoline purchased by the plaintiffs in error in Illinois and used within Kentucky in the operation of a ferry boat on the Ohio River between the two States. The Court found that the tax was laid 'directly upon the use of the gasoline in interstate transportation. The Court said that “ The tax is exacted as the price of the privilege of using an instrumentality of interstate commerce.” Id., p. 252. Such a tax is manifestly different from a general property tax or a tax upon purely local sales. Decree affirmed. 8 8 Dahnke-Walker Milling Co. v. Bondurant, 257 U. S. 282, 290, 291; Lemke v. Farmers Grain Co., 258 U. S. 50; Stafford v. Wallace, 258 U. S. 495, 516; Shafer v. Farmers Grain Co., 268 U. S. 189, 198. 154 OCTOBER TERM, 1931. Argument for Petitioner. 285 U.S. DANIEL, TRUSTEE IN BANKRUPTCY, v. GUARANTY TRUST CO» OF NEW YORK. CERTIORARI TO THE CIRCUIT COURT OF APPEALS FOR THE EIGHTH CIRCUIT. No. 179. Argued December 11, 1931.—Decided March 14, 1932. 1. The filing of a petition for reclamation before a referee in bankruptcy does not submit the petitioner to the summary jurisdiction of the referee in matters having no immediate relation to such claim. So held where the referee attempted to adjudicate and enforce a counterclaim for money alleged to belong to the trustee in bankruptcy against a trust company which had sought the return of certain bonds, of which, it was alleged, the bankrupt had gained possession by fraud. P. 161. 2. In No. XXXVII of General Orders in Bankruptcy, the provision that “ In proceedings in equity, instituted for the purpose of carrying into effect the provisions of the act, or for enforcing the rights and remedies given by it, the rules of equity practice established by the Supreme Court of the United States shall be followed as nearly as may be,” does not apply to summary proceedings before a referee for the restoration of specific property. P. 162. 49 F. (2d) 866, affirmed. Certiorari, 284 U. S. 602, to review a judgment of reversal on an appeal from an order of the District Court modifying and affirming an order of a referee in bankruptcy. Mr. Winthrop B. Lane, with whom Messrs. Halleck F. Rose, Arthur R. Wells, and Paul L. Martin were on the brief, for petitioner. A referee in bankruptcy has summary jurisdiction to order a person holding property of the bankrupt estate without adverse claim, to deliver the property to the trustee in bankruptcy. Bankrutcy Act, §§ 2, 23, 33, 36, 38; Mueller v. Nugent, 184 U. S. 1; Harrison v. Chamber-lain, 271 U. S. 191. DANIEL v. GUARANTY TRUST CO. 155 154 Argument for Petitioner. A mere assertion of an adverse claim does not oust this jurisdiction. The court may inquire for the purpose of ascertaining whether the claim is substantial or merely colorable or frivolous. If the claim is of the latter class, the court may proceed the same as though no adverse claim had been asserted. Mueller v. Nugent, supra; Gamble v. Daniel, 39 F. (2d) 447; May v. Henderson, 268 U. S. 111. A claimant cannot acquire an adverse interest in property of the bankrupt estate that comes into his possession after adjudication in bankruptcy. May n. Henderson, supra; Reed v. Barnett Nat. Bank, 250 Fed. 983; Knapp & Spencer Co. v. Drew, 160 Fed. 413; Eppley v. Baylor, 293 Fed. 305; Harrison v. Chamberlain, 271 U. S. 191. The court has the same summary jurisdiction to order the delivery of money or bank deposits as it has to order the delivery of tangible property, real or personal. May v. Henderson, 268 U. S. Ill; Knapp & Spencer Co. v. Drew, supra; Reed v. Barnett Nat. Bank, supra; In re Davis, 119 Fed. 950; In re Walker Grain Co., 295 Fed. 120; In re Radley Steel Const. Co., 212 Fed. 462. The court has jurisdiction to adjudicate adverse claims on property in its possession. Bankruptcy Act, § 70 (a); Murphy v. Hofman Co., 211 U. S. 562; Whitney n. Wen-man, 198 U. S. 539; U. S. Fidelity Ac G. Co. v. Bray, 225 U. S. 205; Isaacs v. Hobbs Tie & Timber Co., 282 U. S. 734; Straton v. New, 283 U. S. 318; Taubel-Scott-Kitz-miller Co. v. Fox, 264 U. S. 426. The presentation by the trustee of the cross-demand and the power of the court to determine the issue so presented, are sanctioned by Equity Rule 30 and General Order in Bankruptcy XXXVII. Buffalo Specialty Co. v. Vancleef, 217 Fed. 91; Champion Spark Plug Co. v. Champion Ignition Co., 247 Fed. 200; Marconi Wireless Co. v. National Elec. Signaling Co., 206 Fed. 295; Electric Boat Co. v. Lake Torpedo Boat Co., 215 Fed. 377; Goodno 156 OCTOBER TERM, 1931. Argument for Petitioner. 285 U.S. v. Hotchkiss, 230 Fed. 514; Harper Bros. v. Klaw, 232 Fed. 609; Dykes v. Widdows, 31 F. (2d) 745; Champlain Realty Co. v. Brattleboro, 260 U. S. 366. The respondent, by coming into the bankruptcy court and seeking affirmative summary relief, thereby gave the court jurisdiction of its person, as to such issue, and all such defenses, including affirmative claims, that might be properly litigated in that summary proceeding. Consent thus given can not be withdrawn so as to deprive the court of jurisdiction so obtained. Operative Piano Co. v. First Wisconsin Trust Co., 283 Fed. 904; In re Bennett, 285 Fed. 351; In re Pennsylvania Coffee Co., 8 F. (2d) 98; Triangle Electric Co. n. Foutch, 40 F. (2d) 353; In re Dernburg & Son, Inc., 5 F. (2d) 37; In re Barnett, 12 F. (2d) 73; Wiswall v. Campbell, 93 U. S. 347. Equitable terms may be imposed by a court as a condition of granting an order of reclamation. In re Hooven-Owens-Rentschler Co., 195 Fed. 424; Remington on Bankruptcy, vol. 5, p. 602. Respondent’s withdrawal did not defeat the jurisdiction to determine the issue raised by the answer. Vidal v. Securities Co., 276 Fed. 855; Buffalo Specialty Co. v. Vancleef, 217 Fed. 91. The speedy administration of the bankruptcy law requires the application of the modern equity practice which permits the adjudication of all controversies between the same parties in one suit. Mueller v. Nugent, 184 U. S. 1; May n. Henderson, 268 U. S. Ill; Harrison v. Chamber-lain, 271 U. S. 191. Courts of bankruptcy, in the exercise of their equity powers, act in personam and have summary jurisdiction where a party voluntarily appears or can be served with process, regardless of the location of the res or domicile of the party. Robertson v. Howard, 229 U. S. 254; Isaacs v. Hobbs Tie & Timber Co., 282 U. S. 734; Alco Film DANIEL v. GUARANTY TRUST CO. 157 154 Argument for Respondent. Corp. v. Alco Film Service, 234 Fed. 55; Orinoco Iron Co. v. Metzel, 230 Fed. 40; In re Britannia Mining Co., 197 Fed. 459; In re Small Shoe Co., 5 F. (2d) 956; Staunton v. Wooden, 179 Fed. 61. Ancillary jurisdiction does not bar the court of primary jurisdiction from acting if the non-resident party voluntarily appears before it. Mr. Porter R. Chandler, with whom Messrs. John W. Davis and Wm. C. Dorsey were on the brief, for respondent. Irrespective of whether respondent had an adverse interest in the balance of the demand loan account claimed by the trustee, the referee had no jurisdiction to entertain such a counterclaim. Weidhorn v. Levy, 253 U. S. 268, 271; General Phonograph Corp. v. Fanning, 6 F. (2d) 115; Hebert n. Crawford, 228 U. S. 204; Murphy v. Hofman Co., 211 U. S. 562; White v. Schloerb, 178 U. S. 542; Isaacs v. Hobbs Tie & Timber Co., 282 U. S. 734. Courts have frequently and uniformly held that General Order XXXVII is not applicable to a summary proceeding. In re Cunney, 225 Fed. 426; International Harvester Co. n. Carlson, 217 Fed. 736, 739; In re Hughes, 262 Fed. 500; Bradley v. Huntington, 277 Fed. 948; In re Kenney & Greenwood, 23 F. (2d) 681. Assuming that the referee did not err in overruling respondent’s motion to strike out paragraph 8 of the trustee’s answer, the referee should nevertheless have subsequently dismissed the counterclaim when it appeared that the subject matter of the counterclaim was not a specific res, or an admitted bank deposit, but was in effect merely an alleged debt. In re Haley, 158 Fed. 74, appeal dismissed 209 U. S. 546; In re Howe Mfg. Co., 193 Fed. 524; In re Ballou, 215 Fed. 810; Remington on Bankruptcy vol. 5, § 2350. Assuming that the counterclaim of the trustee is for property existing in tangible form, the referee is neverthe- 158 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. less bound to make inquiry as to whether the respondent has an adverse interest in such property. The record discloses that the respondent has an adverse interest which precluded the referee from proceeding further on the counterclaim. If the adverse interest asserted by the party in possession of the property is found to be substantial and not colorable, the jurisdiction of the referee thereupon terminates. A plenary suit must then be instituted. May v. Henderson, 268 U. S. Ill; In re Selfridge, 33 F. (2d) 800; Shea v. Lewis, 206 Fed. 877; Board v. Leary, 236 Fed. 521; Priest v. Weaver, 43 F. (2d) 57; Johnston v. Spencer, 195 Fed. 215; Gamble v. Daniel, 39 F. (2d) 447. Mr. Justice McReynolds delivered the opinion of the Court. December 10, 1929, The Peters Trust Company, of Omaha, Nebraska, was adjudged bankrupt by the United States District Court for that State. March 17, 1930, Herbert S. Daniel, petitioner here, became trustee of the estate. In April, 1930, the Guaranty Trust Company of New York presented to the same court a petition for the reclamation of designated bonds. It alleged that, while insolvent and without intent to pay for them, the Peters Company had fraudulently ordered and received these bonds from the Guaranty Company of New York; that title thereto had not passed to the Peters Company; that no part of the purchase price had been paid. Also “ that on the dates said bonds were shipped by the Guaranty Company of New York, said Guaranty Company of New York, sold, assigned and set over to your petitioner, Guaranty Trust Company, for a valuable consideration, the accounts against the said Peters Trust Company for said bonds, and your petitioner is now the owner of said bonds”; and that they were unlawfully withheld by the DANIEL v. GUARANTY TRUST CO. 159 154 Opinion of the Court. trustee. The prayer was “that an order be entered instructing and directing, Herbert S. Daniel, Trustee of said Peters Trust Company, Bankrupt, to deliver to your petitioner the bonds described above and that your petitioner have such other and further relief as may seem just and proper.” The trustee answered. He denied that the bankrupt had acted fraudulently. He asserted that title to the bonds had vested in it and petitioner had no right to recover them. After such denials and allegations, the trustee (Answer, par. 7) stated that customers of the Peters Trust Company had placed orders with it to buy the bonds; that they had an interest in the controversy and should be made parties to the proceeding. Also (par. 8)— “ Your trustee further alleges, that the Guaranty Trust Company of New York, the petitioner and applicant herein, has in its possession, on deposit, approximately the sum of $31,224.60 which belongs to the bankrupt estate, and which was accumulated by the Receiver and Trustee of said bankrupt estate since the date it was adjudicated bankrupt. The trustee has made due demand upon the petitioner for delivery of the said money, but the Guaranty Trust Company of New York, has refused to deliver the said funds or any part thereof, and should be required to account for all funds collected by it on behalf of the receiver or trustee of Peters Trust Company, Bankrupt, or the bankrupt estate, and be directed to deliver the same forthwith to Herbert S. Daniel, Trustee.” The answer concludes— “ The trustee further prays for an order directing the Guaranty Trust Company of New York to account to him for all funds collected or now held by it belonging to the bankrupt estate, and be ordered to deliver the same [forthwith] to your trustee, and for such other relief as to the Court may seem just and equitable.” 160 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. The matter went to the referee. The Guaranty Trust Company moved that paragraphs 7 and 8 be stricken from the answer because they pertained to an issue entirely separate from the one submitted by its petition. This was overruled. Thereupon, counsel for the Trust Company asked that the reclamation proceeding be dismissed, and then withdrew. The referee took testimony concerning the relationship and dealings among the parties. He found that the reclamation proceedings should be dismissed only insofar as they sought to obtain the securities. Also, “ the court further finds that the Guaranty Trust Company has in its hands the sum of $23,724.60 in cash, belonging to Herbert S. Daniel, trusteee of the above named bankrupt; that said sum was accumulated by Herbert S. Daniel as receiver subsequent to February 12th, 1930, said moneys having been collected by said Guaranty Trust Company for and on behalf of said bankrupt estate from the Prudential Insurance Company of America on mortgages made by the bankrupt and sold to the Prudential Insurance Company of America, and that said Guaranty Trust Company has not made herein any claim to the said fund of $23,724.60, and has no claim to the said fund, or to any part thereof, and is merely holding the said sum of $23,724.60 as custodian and agent of Herbert S. Daniel, as trustee of the above named bankrupt, and that said sum should be delivered forthwith to said trustee.” The referee’s final order directed the trustee to deliver the bonds to specified customers of the Peters Trust Company upon stated conditions, and further “ That the Guaranty Trust Company of New York, the applicant herein, be, and it is hereby ordered and directed to forthwith pay over to Herbert S. Daniel, as trustee of the above bankrupt estate, the sum of $23,724.60, of moneys in the hands of said Guaranty Trust Company of New DANIEL v. GUARANTY TRUST CO. 161 154 Opinion of the Court. York, belonging to Herbert S. Daniel, trustee of said bankrupt estate, with interest thereon at the rate of 7 per cent per annum from this date.” The District Court modified the referee’s order as to interest and then affirmed it. The Guaranty Trust Company appealed. The Circuit Court of Appeals upheld the objection offered to the jurisdiction of the referee and upon that ground reversed the District Court. 49 F. (2d) 866. It said— . . The petition of appellant for reclamation and the portion of the trustee’s answer which asked for affirmative relief were, in fact, petitions by the parties asking the referee to exercise his summary jurisdiction in proceedings in bankruptcy. The two proceedings were quite distinct. Appellant sought to recover certain bonds to which it claimed title. The trustee sought an order that appellant should pay over money of the bankrupt estate received by appellant, after bankruptcy. The proceedings would not have been more unrelated to each other, if the trustee had sought an order on appellant for the delivery of books and papers such as was asked in Babbitt v. Dutcher, 216 U. S. 102, or an order for the examination of witnesses such as was asked in Elkus, Petitioner, 216 U. S. 115. We have been cited to no authority for the proposition that a creditor or other petitioner asking specific relief against a bankrupt’s estate, as provided by the Bankruptcy Act, thereby becomes subject to summary orders by the referee in matters entirely disconnected from the subject matter of such claim or petition, and no such authority is believed to exist.” The conclusion of the Circuit Court of Appeals is correct and its decree must be affirmed. In the circumstances, Did the referee have jurisdiction to enter the turnover order against the Trust Company? 137818°—32-----11 162 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. The answer must be “ No ” unless that Company by filing its petition for reclamation entered its general appearance and in effect consented to submit itself to summary proceedings before that officer in respect of matters having no immediate relation to the claim which it had presented. In practice such a rule might lead to unfortunate complications and deprive owners of property of fair opportunity to recover. The risk incident to a general appearance and consent to adjudication of claims of all kinds might easily deter where the right to recover is clear. Moreover, the choice would not be between tribunals merely, but between the ordinary processes in a plenary suit and a summary hearing. We are not cited to any opinion by an appellate court which definitely approves the view advanced by the petitioner. We cannot conclude that the demand for speedy administration of bankrupt estates is enough to justify such a radical departure from ordinary procedure. And the suggestion that it is possible to impose equitable terms as a condition to an order of reclamation is not helpful. No such conditional order was proposed or entered. The petitioner maintains that, read together and properly construed, General Order XXXVII and Equity Rule 30 applied in the circumstances and invested the referee with jurisdiction to act as he did. General Order XXXVII—General Provisions: “ In proceedings in equity, instituted for the purpose of carrying into effect the provisions of the act, or for enforcing the rights and remedies given by it, the rules of equity practice established by the Supreme Court of the United States shall be followed as nearly as may be. In proceedings at law, instituted for the same purpose, the practice and procedure in cases at law shall be followed as nearly as may be. But the judge may, by special order in any case, vary the time allowed for return of process, DANIEL v. GUARANTY TRUST CO. 163 154 Opinion of the Court. for appearance and pleading, and for taking testimony and publication, and may otherwise modify the rules for the preparation of any particular case so as to facilitate a speedy hearing.” No. 30, Rules of Practice for the Courts of Equity of the United States, provides—. The answer must state in short and simple form any counter-claim arising out of the transaction which is the subject matter of the suit and may, without cross-bill, set out any set-off or counter-claim against the plaintiff which might be the subject of an independent suit in equity against him, and such set-off or counter-claim, so set up, shall have the same effect as a cross-suit, so as to enable the court to pronounce a final judgment in the same suit both on the original and the cross-claims.” Section 2, Bankruptcy Act, grants to bankruptcy courts “ such jurisdiction in law and in equity as will enable them to exercise original jurisdiction in bankruptcy proceedings to . . . (7) cause the estates of bankrupts to be collected, reduced to money and distributed and determine controversies in relation thereto, except as herein otherwise provided.” And § 38 extends to referees “ jurisdiction to . . . (4) perform such part of the duties, except as to questions arising out of the applications of bankrupts for compositions or discharges, as are by this Act conferred on courts of bankruptcy of their respective districts, except as herein otherwise provided; . . •” Counsel for petitioner assert: Bankruptcy proceedings constitute a branch of equity jurisdiction; a court sitting in bankruptcy is a court of equity. Fidelity Trust Co. v. Gaskell (8th C. C. A.), 195 Fed. 865, 871. Remington on Bankruptcy, Vol. 1, p. 48, § 23. And then they say: “ Obviously, except as the privilege of modification is granted to facilitate speedy hearings, the rules of equity practice are applicable, without limitation or reservation, to all equitable proceedings in 164 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. courts of bankruptcy,” including of course summary proceedings before referees. Without regard to other objections to the reasoning offered to support petitioner’s view, it is obviously unsound unless the words “ proceedings in equity,” in General Order XXXVII apply to summary proceedings before a referee like those here in question. And we think no such intendment can be attributed to them. This Order contains general provisions designed to bring about prompt settlement of bankrupt estates. To that end it directs that in proceedings in equity and at law instituted for the purpose of carrying the Bankruptcy Act into effect and enforcing rights and remedies given thereby, the rules which govern practice in equity and law courts shall be observed, but that the judge may modify them “ so as to facilitate a speedy hearing.” Many of the equity rules are inapplicable to summary proceedings before referees. Such proceedings are not in equity as that term is commonly understood. General Order IV—Conduct of Proceedings—uses the words “ Proceedings in bankruptcy ” when referring to the practice to be followed by Bankruptcy courts—other orders use the word “ proceedings.” The distinction between summary proceedings and plenary suits is adverted to in Weidhorn v. Levy, 253 U. S. 268, 271, 273. There it is also suggested that “ proceedings in equity ” and “ proceedings at law,” as used in General Order XXXVII, refer to something other than “ proceedings in bankruptcy.” Our conclusion accords with what has been held by other Federal courts. In re Cunney, 225 Fed. 426; International Harvester Co. v. Carlson, 217 Fed. 736, 739; In re Hughes, 262 Fed. 500; Bradley v. Huntington, 277 Fed. 948; In re Kenney <& Greenwood, 23 F. (2d) 681. The decree of the Circuit Court of Appeals is Affirmed. LEACH v. NICHOLS. 165 Opinion of the Court. LEACH, EXECUTOR, v. NICHOLS, FORMERLY COLLECTOR OF INTERNAL REVENUE. CERTIORARI TO THE CIRCUIT COURT OF APPEALS FOR THE FIRST CIRCUIT. No. 468. Argued February 23, 1932.—Decided March 14, 1932. 1. Question of law, as to whether a state tax should have been deducted in computing a federal estate tax,—held properly raised in the courts below. P. 166. 2. The tax imposed in Massachusetts upon the passing of property by will or intestate succession, though paid in the first instance by the personal representative, is in effect a succession tax, the burden falling ultimately on the legatee or other beneficiary. P. 169. 3. Such a tax, when paid by an executor, was not deductible under the federal Revenue Act of 1916, § 203, as one of the “ charges against the estate,” in computing the transfer tax imposed by that statute. Id. 50 F. (2d) 787, affirmed. Certiorari, 284 U. S. 613, to review a judgment reversing a judgment for overpayment of taxes recovered by the present petitioner in an action against the Collector. Mr. 0. Walker Taylor for petitioner. Assistant Attorney General Rugg, with whom Solicitor General Thacher, and Messrs. Sewall Key, Hayner N. Larson, Bradley B. Gilman, and Erwin N. Griswold were on the brief, for respondent. By leave of Court, amici curiae briefs were filed by Mr. Joseph E. Warner, Attorney General of Massachusetts, and Messrs. Clarence W. DeKnight and Frederick Schwertner. Mr. Justice McReynolds delivered the opinion of the Court. William E. Walker, of Taunton, Massachusetts, died testate November 9, 1918. Petitioner, as executor of the 166 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. estate, paid the taxes imposed by the State in respect of the property which passed from the decedent. He also paid to respondent the federal estate taxes prescribed by the Revenue Act 1916, 39 Stat. 756, 778, which the Commissioner reckoned without deducting from the gross estate the taxes exacted by the State. The Circuit Court of Appeals denied his right to recover the alleged overpayment—the difference between the sum demanded and what would have been due if the claimed deduction had been allowed. 50 F. (2d) 787. The District Court had held otherwise. 42 F. (2d) 918. Here the insistence is that to ascertain the net estate under § 203, Revenue Act, September 8, 1916, it was necessary to deduct from the gross estate the tax paid to Massachusetts as required by c. 65 of her General Laws. Also, that in the circumstances the Circuit Court of Appeals should not have decided this question of law. The record shows that the court below properly considered and ruled upon the point of law. The District Court—where the cause was tried without a jury—had said of the state tax, “ there can be no question that it was legally deductible.” The amended declaration alleges that the Commissioner wrongfully refused to allow the deduction. The answer contains a general denial. The agreed statement of facts points out—“ That in arriving at the value of the net estate upon which the said total tax was computed the Commissioner did not make any deduction or allowance for the amount required to pay the Massachusetts inheritance tax, which the estate was required to pay and did pay to the Commonwealth of Massachusetts.” And the defendant asked the court to find as matter of law—“ Plaintiff is not entitled to recover anything of the defendant and his declaration must be dismissed with judgment for the defendant for his costs.” The trial court misconstrued the federal statute. LEACH v. NICHOLS. 167 165 Opinion of the Court. With his petition for appeal from its judgment, the defendant presented, among others, the following assignment of error: The District Court erred in holding: “It is obvious that the United States had demanded and received a tax levied upon the estate of the plaintiff’s testator in excess of the amount lawfully due. It is not the correct tax measured by the net estate in view of decisions of the court.” The Revenue Act of 1916 (amended as to rates March 3, 1917, 39 Stat. 1000, 1002, and October 3, 1917, 40 Stat. 300, 324) imposed a graduated tax upon the transfer of the net estate, ascertained as directed by § 203, of every person dying thereafter. “ Sec. 203. That for the purpose of the tax the value of the net estate shall be determined— “(a) In the case of a resident, by deducting from the value of the gross estate— “(1) Such amounts for funeral expenses, administration expenses, claims against the estate, unpaid mortgages, losses incurred during the settlement of the estate arising from fires, storms, shipwreck, or other casualty, and from theft, when such losses are not compensated for by insurance or otherwise, support during the settlement of the estate of those dependent upon the decedent, and such other charges against the estate, as are allowed by the laws of the jurisdiction, whether within or without the United States, under which the estate is being administered; . . The General Laws of Massachusetts (1921) vol. 1, c. 65, provide— “ Section 1. All property within the jurisdiction of the Commonwealth, corporeal or incorporeal, and any interest therein, whether belonging to inhabitants of the Commonwealth or not, which shall pass by will, or by laws regulating intestate succession . . . shall be subject to a 168 OCTOBER TERM, 1931. Opinion of the Court. 285U.S. tax at the percentage rates fixed by the following table: . . . “ Section 6. Administrators, executors and trustees, grantees or donees under conveyances or gifts made during the life of the grantor or donor, and persons to whom beneficial interests shall accrue by survivorship, shall be liable for the taxes imposed by this chapter, with interest, until the same have been paid. “ Section 7. Taxes imposed by this chapter upon property or interests therein, passing by will or by laws regulating intestate succession, shall be payable to the state treasurer by the executors, administrators or trustees at the expiration of one year from the date of the giving of bond by the executors, administrators or trustees first appointed; . . . “ Section 9. Property of which a decedent dies seized or possessed, subjected to taxes as aforesaid, in whatever form of investment it may happen to be, and all property acquired in substitution therefor, shall be charged with a lien for all taxes and interest thereon which are or may become due on such property. . . . “Section 17. An executor, administrator or trustee holding property subject to the tax imposed by this chapter shall deduct the tax therefrom or collect it from the legatee or person entitled to said property; and he shall not deliver property or a specific legacy subject to said tax until he has collected the tax thereon. An executor or administrator shall collect taxes due upon land passing by inheritance or will which is subject to said tax from the heirs or devisees entitled thereto, and he may be authorized to sell said land, in the manner prescribed by section twenty-one, if they refuse or neglect to pay said tax.” Manifestly, the state taxes paid by the executor were not permissible deductions unless they were such “ charges against the estate, as are allowed by the laws of the juris- HARTFORD ACCIDENT CO. v. BUNN. 169 165 Syllabus. diction, . . . under which the estate is being administered.” Charges against an estate are only such as affect it as a whole. They do not include taxes on the rights of individual beneficiaries. New York Trust Co. n. Eisner, 256 U. S. 345, 350. The Massachusetts statute by plain words places the real burden of the tax upon the legatee or other person who receives a decedent’s property. Payments required of an executor are only preliminary; ultimately they must be met by the beneficiaries. Decisions of the Massachusetts Supreme Court show with adequate certainty that the right of succession is the real object of the charge laid because of property which passes by will or under the laws relative to intestacy. The thing burdened is the right to receive. Attorney General v. Stone, 209 Mass. 186, 190; 95 N. E. 395; Magee v. Commissioner, 256 Mass. 512; 153 N. E. 1;' Boston Safe Deposit & Trust Co. v. Commissioner, 267 Mass. 240; 166 N. E. 729; Coolidge v. Commissioner, 268 Mass. 443, 447; 167 N. E. 757. See Sdltonstall v. Salton-stall, 276 U. S. 260. * It is unnecessary for us to consider whether the petitioner filed a proper claim for refund within the period prescribed by the statute. The challenged judgment is Affirmed. HARTFORD ACCIDENT & INDEMNITY CO. v. BUNN ET AL. APPEAL FROM THE SUPREME COURT OF MISSISSIPPI. No. 333. Argued January 14, 1932.—Decided March 14, 1932. 1. After the time for appeal as fixed by statute has expired, this Court has not jurisdiction to permit a party below to join in an appeal taken in time by another party. P. 177. 170 OCTOBER TERM, 1931. Argument for Appellant. 285 U.S. 2. To review a judgment against two parties jointly (in this case a party and the surety upon its appeal bond in the court below) both must join in the appeal or there must be a summons and severance. P. 180. 3. For applying this rule, a judgment is deemed joint if joint on its face. Pp. 178-182. 161 Miss. 198, appeal dismissed. Appeal from a judgment against the Hartford Company and the surety on its appeal bond in the court below. The judgment granted recoveries to numerous material-men in a suit on a building contractor’s bond. For opinions of the court below at successive stages, see 155 Miss. 31 (119 So. 366); 132 So. 535; 135 id. 497. Messrs. Marion Smith and L. Barrett Jones, with whom Messrs. W. Calvin Wells, Max F. Goldstein, and Arthur G. Powell were on the brief, for appellant. Whether a judgment is such a joint judgment that all parties against whom it is rendered must unite in the appeal depends not on the form of the judgment, but upon considerations of substance. Hanrick v. Patrick, 119 U. S. 156; The New York, 104 Fed. 561; Love n. Export Storage Co., 143 Fed. 1, 11; Clarke v. Boysen, 39 F. (2d) 800, 821. The nature of judgments rendered in the State of Mississippi and the relations of parties thereto is a matter of local law as to which the decisions of the highest courts of that State are controlling. Central Loan & Tr. Co. v. Campbell Commission Co., 173 U. S. 84, 90. The scope and effect of a judgment of a state court is peculiarly a question of state law. Kenney n. Craven, 215 U. S. 125, 130. The Supreme Court of Mississippi has held (Wilson v. Lexington, 153 Miss. 209) that though an intermediate appellate court includes the surety on the appeal to that court in the judgment it renders against the appellant, the surety on this first appeal is not a necessary party to HARTFORD ACCIDENT CO. v. BUNN. 171 169 Argument for Appellant. a further appeal of the case to a higher court. The rule of joinder on appeal is the same in that State as it is in this Court, with the exception of the manner in which summons and severance is had as to a non-joining party. We have then, a construction of the effect of judgments in that State—a construction that the relations of the principal appellant and his surety to the judgment are not joint but are severable; and that the relation of the surety to the judgment is not absolute, as it appears on the face of it to be, but is contingent only. The earlier case of Thomas v. Wyatt, 17 Miss. 308, cited by appellee, was overruled in Wilson v. Lexington, supra. To the same effect: National Surety Co. v. LeFlore County, 262 Fed. 325; National Surety Co. v. Austin Machinery Co., 35 F. (2d) 842, 845. In Mississippi the common-law rule as to joint contracts has been abolished by statute, so that all liabilities, by contracts, express or implied, including judgments, are now several. J. B. White’s Garage v. Boyd, 149 Miss. 383; Code, 1930, §§ 2027, 2028. This is peculiarly so as to bonds on appeal; since all appellants do not have to join in the appeal bond, and judgment on appeal may be entered against the surety, though his immediate principal be held not liable, if liability is adjudged against any of the other appellants— thus showing a complete severability of liability. Code, 1930, § 37; Wise v. Cobb, 135 Miss. 673. A joint judgment, if we look to common-law definition, is such that if either party pay it, he is entitled to contribution against the other; and in a judgment against one as principal and another as surety, no contribution ever exists. The principal, if he pays, can not recover anything from the surety; and the surety, if it pays, can recover the entire amount from the principal. Neither reason nor precedent supports the proposition that where, under statute or the rules of court, judgment 172 OCTOBER TERM, 1931. Argument for Appellant. 285 U.S. is automatically and without further hearing rendered against the surety on appeal or similar bond, the surety is a necessary party to an appeal from that judgment, where the appeal is solely on the merits of the controversy. The New York, 104 Fed. 561. See same case, 189 U. S. 363. Cf. Erie R. Co. v. Erie & W. Transp. Co., 204 U. S. 220, 224; The Glide, 72 Fed. 200; Evans v. Cheyenne Cement Stone Co., 20 Wyo. 188. The judgment appealed from in Estis v. Trdbue, 128 U. S. 225, was, as Judge Lurton points out (The New York, supra), a judgment in a suit which was in substance a suit on the bond itself. In Columbia River Packers Assn. v. McGowan, 217 Fed. 196, also, it is held that sureties on an injunction bond need not be joined in an appeal from a judgment in which they were included with their principal. Cf. Hart v. Wiltse, 16 F. (2d) 838; Pease v. Rathburn-Jones Engineering Co., 243 U. S. 273; Babbitt v. Shields, 101 U. S. 7. A surety not interested in the controversy on the merits can not appeal, though included in the judgment. Davis v. Preston, 280 U. S. 406. If, as is said in Ex parte Chetwood, 165 U. S. 443, 461, “ according to the practice in this Court, a writ of error [now appeal] has been treated rather as a continuation of the original litigation than the commencement of a new action,” how can one whose function in the case is not to conduct litigation, but merely to abide the result of litigation, prosecute the appeal, or join in prosecuting it or in shaping and controlling the litigation on appeal? In the Glide case, 72 Fed. 200, it is said that the surety need not be joined in the further appeal, because his interests are represented by his principal. In Clinchfield Fuel Co. v. Titus, 226 Fed. 574, the court refused to dismiss the appeal for the non-joinder of certain persons, on HARTFORD ACCIDENT CO. v. BUNN. 173 169 Argument for Appellees. the ground that another person representative of their interest had been joined. The surety’s relation to the case and to the judgment is analogous to that of a co-defendant against whom a decree pro confesso or a default has been taken where the other defendant defends. It is held that in appealing from such a judgment the defendant who litigated need not join the defaulting co-defendants included in the same judgment. Winters v. United States, 207 U. S. 564; Federal Intermediate Bank v. L’Herrisson, 33 F. (2d) 841; Clarke v. Boysen, 39 F. (2d) 800, 820. Even if the surety is a necessary or proper party, the motion of the appellant to make it a party, to which the surety has consented, should be granted. The Mary B. Curtis, 250 Fed. 9; The Seguranca, 250 Fed. 19; The City of Naples, 69 Fed. 794; Hart v. Wiltse, 16 F. (2d) 838; Rininger v. Puget Sound Elec. Ry., 220 Fed. 419; Hill v. Western Electric Co., 214 Fed. 243; Kelly v. Allen, 49 F. (2d) 876. Messrs. Gerard Brandon, S. B. Laub, and Gamer W. Green, with whom Messrs. L. T. Kennedy, E. H. Ratcliff, Joseph E. Brown, and Marcellus Green were on the brief, for appellees. There being a joint judgment, there is no jurisdiction of an appeal by the Indemnity Company alone. Hardee v. Wilson, 146 U. S. 180; Hughes Federal Practice §§ 5430, 6153; May tin v. Vela, 216 U. S. 598; Babcock v. Norton, 5 F. (2d) 154, certiorari denied, 268 U. S. 688; Inglehart v. Stansbury, 151 U. S. 71; Davis v. Mercantile Trust Co., 152 U. S. 588; Sipperly v. Smith, 155 U. S. 86; Downing v. McCartney, 131 U. S. appendix xcviii; Winters v. United States, 207 U. S. 564. The claim of each appellee—materialmen—is severally and separately determinable in this Court. Seaver v. Bigelow, 5 Wall. 208; Stewart v. Dunham, 115 U. S. 61. 174 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. The requirement that application for appeal must be made within three months is jurisdictional and can not be avoided by consent, waiver or order of the court. Rust v. Jackson, 250 U. S. 76; Scale Co. v. Scale Co., 261 U. S. 399; Robie v. Hart, Shaffner <& Marx, 40 F. (2d) 871; American Baptist Society v. Barnett, 26 F. (2d) 350, certiorari denied, 278 U. S. 626. Joinder can not be permitted, and the case must be dismissed. Williams v. Bank, 11 Wheat. 414; Estis v. Trabue Davis & Co., 128 U. S. 225; Lamon v. Speer Hardware Co., 190 Fed. 734; Humes v. Chattanooga Third Nat. Bank, 54 Fed. 917; Thomas v. Wyatt, 17 Miss. 308; American Baptist Society v. Barnett, supra; Wilson v. Life & Fire Ins. Co., 12 Pet. 140; Hilton v. Dickenson, 108 U. S. 165, 168. The Supreme Court of Mississippi has never allowed this appeal to Aetna Casualty & Surety Company and consent does not confer jurisdiction. Mills v. Brown, 16 Pet. 525. Mr. Justice McReynolds delivered the opinion of the Court. October 18, 1926, J. V. & R. T. Burkes agreed with the Investment Company, owner of certain land in Natchez, Mississippi, to construct a hotel thereon. The contract contains the following clauses— “Article 30. Guaranty Bond.—The Owner shall have the right, prior to the signing of the contract, to require the Contractor to furnish bond covering the faithful performance of the Contract and the payment of all obligations arising thereunder, in such form as the Owner may prescribe with such sureties as he may approve. If such bond is required by instructions given previous to the submission of bids, the premium shall be paid by the Contractor; if subsequent thereto it shall be paid by the Owner. HARTFORD ACCIDENT CO. v. BUNN. 175 169 Opinion of the Court. “ Obligations of Bondsmen.—The Contractor’s bondsmen shall obligate themselves to all the terms and covenants of these specifications, and of the contracts covering the work executed hereunder, and the Owner and the Architect reserve the right to make all desired changes, alterations, and additions, under the conditions and in the manner hereinbefore described, without in any measure affecting the liability of the bondsmen or releasing them from any of their obligations hereunder.” October 20, 1926, the Burkes gave a bond for $316,-822.00, payable to the Investment Company, with appellant as surety. Among other things this provides— “ Whereas, the Principal and the Obligee have entered into a certain written contract .(hereinafter called the contract) dated October 18th, 1926, To construct 1 Eola Hotel ’ building as per plans and specifications #640 as prepared by Weiss & Dreyfus, Architects, New Orleans, La., a copy of which is or may be attached hereto, and is hereby referred to and* made a part hereof. Now, therefore, the condition of this obligation is such that if the principal shall indemnify the obligee against loss or damage directly caused by the failure of the principal faithfully to perform the contract, then this obligation shall be null and void; otherwise it shall remain in force; provided, however, this bond is executed by the surety, upon the following express conditions, which shall be precedent to the right of recovery hereunder. . . . “11. No right of action shall accrue upon or by reason hereof, to or for the use or benefit of any one other than the obligee named herein; and the obligation of the surety is and shall be construed strictly as one of suretyship only.” Payments to the contractors were made as required by the building contract but they failed to satisfy claims for material furnished by Bunn Electric Company and others. The latter notified the Investment Company. There- 176 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. upon, it instituted a proceeding in the Chancery Court, Adams County, Mississippi, against the contractors, the appellant Hartford Accident & Indemnity Company, and many unpaid materialmen. The bill prayed for a decree declaring the indemnity bond to be one for faithful performance of the building contract and subject to the rights and liabilities provided by § 3,* c. 128, Mississippi Laws of 1918 (§ 2598, Hemingway’s Miss. Code 1927); also for judgments in favor of those who had furnished materials, etc. The materialmen answered. Also by cross bill and interventions they set up their claims and asked for judgments against the contractors and appellant here, surety upon the bond. The Chancellor gave judgments in favor of the cross-complainants as prayed. The Indemnity Company appealed. The Supreme Court approved, upon the view that § 3, c. 128, Mississippi Laws 1918, applied and controlled the obligation of the bond. [132 So. 535.] It ordered that the materialmen severally “ do have and recover of and from the appellant Hartford Accident & Indemnity Company, and of Aetna Casualty & Surety * Chapter 128, Mississippi Laws of 1918. “ Sec. 8. That when any contractor or subcontractor entering into a formal contract with any person, firm or corporation, for the construction of any building or work or the doing of any repairs, shall enter into a bond with such person, firm or corporation guaranteeing the faithful performance of such contract and containing such provisions and penalties as the parties thereto may insert therein, such bond shall also be subject to the additional obligations that such contractor or subcontractor, shall promptly make payments to all persons furnishing labor or material under said contract; and in the event such bond does not contain any such provisions for the payment of the claims of persons furnishing labor or material under said contract, such bond shall nevertheless inure to the benefit of such person furnishing labor or material under said contract, the same as if such stipulation had been incorporated in said bond; . . .” HARTFORD ACCIDENT CO. v. BUNN. 177 169 Opinion of the Court. Company, surety in the appeal bond,” the sums found to be due them. Upon petition of the Hartford Accident & Indemnity Company alone, the Chief Justice of Mississippi allowed an appeal to this Court, July 25, 1931. The Aetna Casualty & Surety Company did not join in the appeal; there was no summons and severance nor any notice equivalent thereto. The assignment of errors challenges the validity, under the Federal Constitution, of § 3, c. 128, Mississippi Laws, above cited, as construed and applied. December 4, 1931, the appellees entered a motion here to dismiss the appeal. They maintain that the judgments in the Mississippi Supreme Court against appellant and Aetna Casualty & Surety Company were joint; the latter company did not join in the appeal; there was no summons and severance; consequently this Court is without jurisdiction. December 23, 1931, appellant and the Aetna Company asked that the latter be made party to the appeal and for proper amendments to that end. The motion to amend must be overruled. The motion to dismiss is sustained. The challenged judgment became final June 15, 1931, more than six months before the Aetna Company applied here for permission to become a party to the pending appeal. If this application and the accompanying motion to amend were granted, the practical effect would be to permit an appeal by a party to a judgment after the prescribed time had expired. The statute (Act of Feb. 13, 1925, c. 229, § 8, 43.Stat. 940; U. S. C. A. Title 28, § 350) provides—“No writ of error, appeal, or writ of certiorari, intended to bring any judgment or decree before the Supreme Court for re-1378180—32----12 178 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. view shall be allowed or entertained unless application therefor be duly made within three months after the entry of such judgment or decree, . . .” Passage of the three months’ period extinguished the right to grant an appeal. Rust Land Co. v. Jackson, 250 U. S. 71, 76; Toledo Scale Co. v. Computing Scale Co., 261 U. S. 399, 418. The judgment is joint in form and no reason appears why either or both of the parties defendant therein might not have appealed to this Court and submitted claims of error for our determination. In matters of this kind we may not disregard the face of the record and treat the judgment as something other than it appears to be. So to do probably would lead to much confusion and uncertainty. Haseltine n. Central Bank, 183 U. S. 130, 131—“ We have frequently held that a judgment reversing that of the court below, and remanding the case for further proceedings, is not one to which a writ of error will lie. . . . While the judgment may dispose of the case as presented, it is impossible to anticipate its ultimate disposition. It may be voluntarily discontinued, or it may happen that the defeated party may amend his pleading by supplying some discovered defect, and go to trial upon new evidence. To determine whether, in a particular case, this may or may not be done, might involve an examination, not only of the record, but even of the evidence in the court of original jurisdiction, and lead to inquiries with regard to the actual final disposition of the case by the Supreme Court, which it might be difficult to answer. We have, therefore, always made the face of the judgment the test of its finality, and refused to inquire whether, in case of a new trial, the defeated party would stand in a position to make a better case. The plaintiffs in the case under consideration could have secured an immediate review by this court, if the HARTFORD ACCIDENT CO. v. BUNN. 179 169 Opinion of the Court. court as a part of its judgment of reversal had ordered the Circuit Court to dismiss their petition, when, under Mower v. Fletcher [114 U. S. 127], they might have sued out a writ of error at once.” Nor J oik Turnpike Co. v. Virginia, 225 U. S. 264, 268, 269. The question was: To which state court should the writ of error run? This Court said—“ The difference between the cases, however, is not one of principle, but solely depends upon the significance to be attributed to the particular form in which the action of thç court below is manifested. In other words, the apparent want of harmony between the rulings of this court has undoubtedly arisen from the varying forms in which state courts have expressed their action in refusing to entertain an appeal from or to allow a writ of error to a lower court and the ever-present desire of this court to so shape its action as to give effect to the decisions of the courts of last resort of the several States on a subject peculiarly within their final cognizance. A like want of harmony resulted from similar conditions involved in determining what was a final judgment of a state court susceptible of being reviewed here, and the confusion which arose ultimately led to the ruling that the face of the judgment would be the criterion resorted to as the only available means of obviating the great risk of confusion which would inevitably arise from departing from the face of the record and deducing the principle of finality by a consideration of questions beyond the face of the alleged judgment or decree which was sought to be reviewed. The wisdom of that rule as applied to a question like the one before us is, we think, apparent by the statement which we have made concerning the rule in the Crovo Case [220 U. S. 364, 366] and the previous decisions.” See Estis v. Trabue, 128 U. S. 225, 229; Schlosser v. Hemphill, 198 U. S. 173, 175; Louisiana Navigation Co. v. Oyster Commission, 226 U. S. 99, 101 ; Second Nat. Bank 180 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. v. First Nat. Bank, 242 U. S. 600, 602; Bruce v. Tobin, 245 U. S. 18, 19; Matthews v. Huwe, 269 U. S. 262, 264. Masterson v. Herndon, 10 Wall, 416, 417, held—“ It is the established doctrine of this court that in cases at law, where the judgment is joint, all the parties against whom it is rendered must join in the writ of error; and in chancery cases, all the parties against whom a joint decree is rendered must join in the appeal, or they will be dismissed. There are two reasons for this: 1. That the successful party may be at liberty to proceed in the enforcement of his judgment or decree against the parties who do not desire to have it reviewed. 2. That the appellate tribunal shall not be required to decide a second or third time the same question on the same record. . . . One of the effects of this judgment of severance was to bar the party who refused to proceed, from prosecuting the same right in another action, as the defendant could not be harassed by two separate actions on a joint obligation, or on account of the same cause of action, it being joint in its nature.” In Estis v. Trabue, 128 U. S. 225, an attachment was levied upon certain personalty. After the return, Estis, Doan & Co. claimed the property, and they gave a forthcoming bond with two sureties. The challenged judgment ruled 11 that the plaintiffs recover of the claimants and C. F. Robinson and John W. Dillard, their sureties in their forthcoming bond, the sum of six thousand and three hundred dollars, together with the costs, etc.” This Court held [p. 229]—“ The judgment is distinctly one against 1 the claimants, and C. F. Robinson and John W. Dillard, their sureties in their forthcoming bond,’ jointly, for a definite sum of money. There is nothing distributive in the judgment, so that it can be regarded as containing a separate judgment against the claimants and another separate judgment against the sureties, or as containing a judgment against the sureties payable and en- HARTFORD ACCIDENT CO. v. BUNN. 181 169 Opinion of the Court. forceable only on a failure to recover the amount from the claimants; and execution is awarded against all of the parties jointly. In such a case the sureties have the right to a writ of error. Ex parte Sawyer, 21 Wall. 235, 240. It is well settled that all the parties against whom a judgment of this kind is entered must join in a writ of error, if any one of them takes out such writ; or else there must be a proper summons and severance, in order to allow of the prosecution of the writ by any less than the whole number of the defendants against whom the judgment is entered.” Mason v. United States, 136 U. S. 581. A postmaster and the sureties on his official bond were sued jointly. He and some of the sureties appeared and defended. The suit was abated as to two of the sureties, who had died. The others defaulted, and judgment of default went against them. On the trial there was a verdict for the plaintiff, whereupon, July 14, 1886, judgment was entered against the principal and all the sureties. The sureties who had appeared sued out a writ of error to this judgment, without joining the principal or the sureties who had made default, and the record came here. May 5, 1890, and after expiration of the two years within which the statute then permitted the suing out of such writs, the plaintiff in error moved to amend the writ by adding the omitted parties as complainants, or for a severance of the parties, and it was held that the motion must be denied and the writ of error be dismissed. Hardee v. Wilson, 146 U. S. 179, 180, cited earlier cases and declared—“ Undoubtedly the general rule is that all the parties defendant,, where the decree is a joint one, must join in the appeal.” See also Davis v. Mercantile Trust Co., 152 U. S. 590; Garcia v. Vela, 216 U. S. 598, 601; Hughes’ Federal Practice, § 6153. The New York, 104 Fed. 561, (Court of Appeals, Sixth Circuit, October 13, 1900) is said to support the view that in the circumstances here presented summons and sever- 182 OCTOBER TERM, 1931. Syllabus. 285 U.S. ance was unnecessary. The proceeding was a cause in admiralty. The surety upon a stipulation for release of the vessel did not join in the appeal. Upon motion to dismiss, the court said—“ It is well settled that all parties against whom a joint judgment or decree is rendered must join in proceedings for review in an appellate court, or that it must appear that those who have not joined had notice of the application for the appeal or writ of error, and refused or neglected to join therein.” But, it ruled that, though joint in form, the decree was separable in law and fact and, therefore, the surety was not a necessary party to the appeal. Considering former opinions of this Court and the long established practice, we cannot accept as applicable to appeals here the doctrine approved in The New York. It is out of harmony with Estis v. Trabue, supra, and other cases cited above. We cannot undertake to explore the record to ascertain what issues were relied upon in courts below. So to do would lead to uncertainty and unfortunate confusion. We must accept the terms of the judgment as entered. As pointed out above, this is the approved practice when it becomes necessary to determine whether a judgment is final or to what court a writ of error should run. Like reasons apply and control here. The appeal must be dismissed. Dismissed. BOWERS, EXECUTOR, v. LAWYERS MORTGAGE CO. CERTIORARI TO THE CIRCUIT COURT OF APPEALS FOR THE SECOND CIRCUIT. No. 355. Argued January 18, 19, 1932.—Decided March 14, 1932. 1. A corporation which paid the capital stock tax laid generally on domestic corporations by § 1000, Revenue Act of 1921, and which claims a refund upon the ground that it should have been taxed under the special provisions of § 246 relating to certain classes of BOWERS v. LAWYERS MORTGAGE CO. 183 182 Counsel for Parties. insurance companies, must show clearly that it is an insurance company within the meaning of the Act. P. 186. 2. The question whether a corporation chartered under and subject to state insurance laws was taxable under § 246 of the Revenue Act of 1921 as an “insurance company” is determined by the character of the business actually done in the tax years. P. 188. 3. Guaranties of payment of interest and principal of mortgage loans, held contracts of insurance. P. 189. 4. Of “ premiums ” and “ investment income,” the only classes of income covered by § 246, supra, the former is characteristic of the business of insurance and the latter is generally essential to it. P. 189. 5. The taxpayer, although organized under and subject to the New York insurance laws, with power to insure titles and loans on mortgage, confined itself mainly to a business which could also be carried on under the banking laws, viz., the business of lending money on bonds and mortgages, selling the bonds and mortgages with its guaranty, and using the purchase money to make additional loans. Its “ premiums ” covered agency and other services not generally performed under contracts of insurance, in addition to the charges for guaranties; the income from guaranties was less than one-third of its entire income and no “investment income” was shown. Held: That as the element of insurance was no more than an incident of the lending business, the taxpayer was not an “ insurance company ” in the common understanding of that term and within the meaning of the Revenue Act, supra. P. 190. 50 F. (2d) 104, reversed. Certiorari, 284 U. S. 606, to review the affirmance of a recovery on a claim for a refund of money paid as taxes. The action was against the executor of a former collector of internal revenue. Dist. Ct., 34 F. (2d) 504. Mr. Claude R. Branch, with whom Solicitor General Thacher, Assistant Attorney General Youngquist, and Messrs. J. Louis Monarch, J. P. Jackson, Francis H. Horan, Clarence M. Charest, E. H. Horton, and Walter W. Mahon were on the brief, for petitioner. Mr. Harry W. Forbes, with whom Mr. John A. Garver was on the brief, for respondent. 184 OCTOBER TERM, 1931. Opinion of the Court. 285U.S. Mr. Justice Butler delivered the opinion of the Court. Respondent voluntarily paid the capital stock tax imposed on domestic corporations by § 1000, Revenue Act of 1921, 42 Stat. 294, for the fiscal years ending June 30 in 1922 and 1923. Thereafter it applied for refund on the ground that it was an insurance company taxable only under § 246, 42 Stat. 262. The claim was denied. It brought this action in the federal court for the southern district of New York to recover the amount so paid. The parties by written stipulation waived a jury and submitted the case on an agreed statement of facts. The district court gave judgment for respondent. 34 F. (2d) 504. The Circuit Court of Appeals affirmed. 50 F. (2d) 104. The question is whether on the admitted facts respondent was an insurance company subject to the tax imposed by § 246 and therefore not taxable under §§ 230 and 1000. Respondent was incorporated in 1893 under §170 (1) of Article V of the Insurance Law of New York1 as the “ Lawyers Mortgage Insurance Company ” to examine titles, procure and furnish information in relation thereto and guarantee or insure bonds and mortgages and the owners of real estate against loss by reason of defective titles. In 1903, “ insurance ” was dropped from its name. In 1905, its certificate of incorporation was amended to include the making, and guarantee of the correctness, of searches for instruments, liens and charges affecting real estate and the guarantee of payment of bonds and mortgages.1 2 In 1913,3 the certificate of incorporation was further amended to include authority to insure payment of notes of individuals and partnerships and bonds and other evidences of indebtedness of corporations, when se- 1 Laws 1890, c. 690. 2 Laws 1904, c. 543. 3 Laws 1913, c. 215. And see Laws 1911, c. 525. BOWERS v. LAWYERS MORTGAGE CO. 185 182 Opinion of the Court. cured by real estate mortgages, and to “ invest in, purchase and sell, with such guarantee [of payment] or with guarantee only against loss by reason of defective title or incumbrances, bonds and mortgages, and notes of individuals or partnerships secured by mortgages . . . and bonds, notes, debentures and other evidences of indebtedness of solvent corporations secured by deed of trust or mortgages . . It was subject to supervision by the state superintendent of insurance and to the laws applicable to title and credit guaranty corporations and was required to file with such superintendent statements of its condition at the end of each year. Respondent never has insured titles. In the tax years, it carried on business as follows: Upon receiving an application for a loan it caused an appraisal of the proposed real estate security to be made and procured a title insurance company to survey the property, make a report as to title and insure the same. The borrower, having executed and delivered a bond and mortgage to respondent, received from it the amount specified therein less charges for title insurance, survey, disbursements and recording tax and less a lending fee which included the charge for appraisal. Respondent sold the mortgage loans. On the sale of a bond and mortgage as a whole, it delivered an assignable contract called 11 policy of mortgage guarantee ” to the purchaser. On the sale of part of a loan, it issued a participation certificate assignable by indorsement and registration on respondent’s books and containing substantially the same provisions as the policy. By every such policy or certificate the purchaser appointed respondent his agent to collect the principal and interest, and the latter agreed to keep the title guaranteed and the premises insured against fire and to require the owner to pay taxes, assessments, water rates and fire insurance premiums. Respondent guaranteed payment of principal, as and when collected but in any event within 18 months following written demand made after maturity, 186 OCTOBER TERM, 1931. Opinion of the Court. 285U.S. and payment of interest regularly at an agreed rate usually one-half of one per cent, less than that specified in the bond. Respondent kept the difference and called it “premium.” Respondent also retained the interest accruing between the making of the loans and the sale of the securities. For renewals of loans it charged extension fees. It issued some policies of guaranty as to mortgage loans which were not made or sold by it. While substantial in amount, that part of its business constituted but a small percentage of the total. It made no assignment or apportionment of assets to the different parts of its business, but used them indiscriminately in its different activities. It kept on hand sufficient bonds and mortgages to maintain the guaranty fund required by the Insurance Law. Corporations organized under the New York banking laws and subject to its banking department are authorized to make loans and sell bonds, mortgages and participations therein with their guaranties under the same general method of doing business as that of respondent. And at least two companies so organized and supervised are carrying on that business. Pertinent provisions of the Act are printed in the margin.4 The general rule declared by § 1000 (a) is broad 4“Sec. 1000 (a). . . . (1) Every domestic corporation shall pay annually a special excise . . . equivalent to $1 for each $1,000 of . . . its capital stock . . . “(b) The taxes imposed by this section shall not apply ... to any insurance company subject to the tax imposed by section . . . 246. “ Sec. 246 (a). That, in lieu of the taxes imposed by sections 230 and 1000, there shall be levied, collected and paid . . . upon the net income of every insurance company (other than a life or mutual insurance company) a tax as follows: “(1) In the case of such a domestic insurance company the same percentage of its net income as is imposed upon other corporations by section 230; . . . “(b) ... (1) The term ‘gross income’ means the combined gross amount, earned during the taxable year, from investment income BOWERS v. LAWYERS MORTGAGE CO. 187 182 Opinion of the Court. enough to include respondent. But, if it was an insurance company taxable under § 246, it was excepted from the general rule by subsection (b). As such corporations constitute a special class, respondent must be held liable for the capital stock tax unless clearly shown to have been an insurance company within the meaning of the Act. Bank of Commerce v. Tennessee, 161 U. S. 134, 146. Heiner v. Colonial Trust Co., 275 U. S. 232, 235. Choteau v. Burnet, 283 U. S. 691, 696. The Act does not define “ insurance company ” or definitely indicate criteria by which corporations meant to be so specially dealt with may with certainty be identified. General definition is not necessary in order to determine whether, having regard to the purpose of the classification and the considerations on which it probably was made, respondent’s business brought it within the special class. Under § 230, Revenue Act of 1918, 40 Stat. 1075, insurance companies were taxed as were other business corporations. The applicable definition of gross income was comprehensive and included gains, profits and income derived from any source whatever. § 213, p. 1065. It was substantially the same in the 1921 Act. § 213, 42 Stat. 237. But § 246 of the latter Act dealt with certain classes of insurance companies separately and defined and from underwriting income as provided in this subdivision, computed on the basis of the underwriting and investment exhibit of the annual statement approved by the National Con vention of Insurance Commissioners; “(2) The term ‘net income’ means the gross income as defined in paragraph (1) of this subdivision less the deductions allowed by section 247; “(3) The term ‘investment income’ means the gross amount of income earned during the taxable year from interest, dividends and rents . . . “(4) The term ‘underwriting income’ means the premiums earned on insurance contracts during the taxable year less losses incurred and expenses incurred; . . .” 188 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. gross income to be “ investment income,” i. e., interest, dividends and rents, and “ underwriting income,” i. e., premiums earned less losses and expenses. Capital gains and income from other sources were omitted. A statement showing respondent’s lending fees, extension fees, interest and premiums follows: Year Lending Fees Extension Fees Interest Premiums6 1922.......$655,283.70 $214,303.56 $372,795.12 $619,986.38 1923 ..... 990,855.37 73,745.71 426,842.31 750,803.21 While name, charter powers, and subjection to state insurance laws have significance as to the business which a corporation is authorized and intends to carry on, the character of the business actually done in the tax years determines whether it was taxable as an insurance company. United States v. Phellis, 257 U. S. 156, 168. Weiss v. Steam, 265 U. S. 242, 254. Evidently that was the basis of the classification. Congress did not intend to exempt from the capital stock tax under § 1000 (a) and the income tax under § 230 corporations not doing insurance business even though organized under and subject to state insurance laws. The dropping of “ insurance ” from respondent’s name and the extension of charter powers to the purchase and sale of mortgage loans suggest purpose to carry on an investment rather than an insurance business. Respondent did not consider itself an insurance company taxable under § 246 until after it had twice made and paid capital stock taxes under § 1000(a) and income taxes under § 230. The lending of money on real-estate security, the sale of bonds and mortgages given by borrowers and use of the money received from purchasers to make addi- 6 These amounts are derived from interest collected by respondent from borrowers in excess of the rates payable to purchasers under the contract of sale and from charges on policies covering mortgage Ioans not made, or sold by it. BOWERS v. LAWYERS MORTGAGE CO. 189 182 Opinion of the Court. tional loans similarly secured constituted its principal business. Undoubtedly the guaranties contained in the policies and participation certificates were in legal effect contracts of insurance. Tebbets v. Mercantile Credit Guarantee Co., 73 Fed. 95, 97. Guarantee Co. v. Mechanics’ Bank & Trust Co., 80 Fed. 766, 772. State ex rel. Peach Co. v. Bonding & Surety Co., 279 Mo. 535, 553, 556; 215 S. W. 20. People v. Potts, 264 Ill. 522, 527; 106 N. E. 524. People v. Rose, 174 Ill. 310; 51 N. E. 246. Commonweal th v. Wetherbee, 105 Mass. 149, 160. Shak-man v. United States Credit System Co., 92 Wis. 366, 374; 66 N. W. 528. Young v. American Bonding Co., 228 Pa. 373, 380 ; 77 Atl. 623. These guaranties furnished purchasers additional security and were calculated to make the loans desirable as investments and readily saleable at a profit. The lending fees, extension fees and accrued interest appertain to the business of lending money rather than to insurance, and may not reasonably be attributed to the subordinate element of guaranty in respondent’s mortgage loan business. The so-called premiums amount to about one-third of total income, but they cover agency and other services which generally are not performed under contracts of insurance. There is no showing that these amounts do not include profits arising from such sales or that they are justly chargeable or were intended to apply only to the risks covered. Respondent has not established any basis upon which the interest so retained may reasonably be charged or apportioned to the element of insurance involved in such transactions. And the stipulation in respect of policies issued on loans not made by respondent is too vague to be given weight. " Premiums ” are characteristic of the business of insurance, and the creation of “ investment income ” is generally, if not necessarily, essential to it. Section 246 does not cover any other class of income. It is not shown that 190 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. respondent had any investment income within that section. Evidently its guaranties produced less than one-third of its income. Respondent’s business is one which may be and is in fact carried on by corporations organized under the New York banking laws. The element of insurance may not properly be regarded as more than an incident thereof; it certainly is not sufficient to make respondent an “ insurance company ” within the meaning of that phrase as it is commonly used and understood. There is no warrant for holding that Congress intended to use the expression in any other sense. Miller v. Robertson, 266 U. S. 243, 250. Sacramento Navigation Co. v. Saiz, 273 U. S. 326, 329-330. This case is not, as respondent contends, ruled against the Government by United States v. Loan & Bldg. Co., 278 U. S. 55. The opinion in that case shows that loan and building associations exempt from taxes under Revenue Acts of 1918 and 1921 are not strictly confined to the raising of funds by subscription of members, for the making of advances to members to enable them to build or buy houses of their own; that the outside operations of the association there considered were not so related to mere money-making as to constitute a gross abuse of the name, and that the receiving of deposits on interest and making of loans to non-members did not disqualify it for the exemption. In the case before us, respondent’s charter authority extended not only to the business of insurance but also to other lines, including that of investment, with or without guaranties as it might choose. As above shown, the element of guaranty involved in its transactions in the tax years was not sufficient to make it an insurance company. Judgment reversed. UNITED STATES v. HOME TITLE CO. 191 Opinion of the Court. UNITED STATES v. HOME TITLE INSURANCE CO. CERTIORARI TO THE CIRCUIT COURT OF APPEALS FOR THE SECOND CIRCUIT. No. 356. Argued January 19, 1932.—Decided March 14, 1932. 1. The guaranty of payment of principal and interest of mortgage loans is insurance. Bowers v. Lawyers Mortgage Co., ante, p. 182. P. 195. 2. A corporation, organized under the insurance laws of New York, and deriving more than three-fourths of its income from insurance of titles and guaranties of mortgages sold by itself and from services incident to that business, including title examinations and appraisals,—held an “insurance company” within the meaning of that term as commonly understood and as used in § 246 of the Revenue Acts of 1921 and 1924. Cf. Bowers v. Lawyers Mortgage Co., supra. P. 195. 50 F. (2d) 107, affirmed. Certiorari, 284 U. S. 606, to review a judgment reversing a judgment for the United States, 41 F. (2d) 793, in an action against it to recover money paid under protest as capital stock taxes. Mr. Claude R. Branch, with whom Solicitor General Thacher, Assistant Attorney General Youngquist, and Messrs. J. Louis Monarch, J. P. Jackson, Francis H. Horan, Clarence M. Charest, E. H. Horton, and Walter W. Mahon were on the brief, for the United States. Mr. Hugh Satterlee, with whom Mr. I. Herman Sher was on the brief, for respondent. Mr. Justice Butler delivered the opinion of the Court. Respondent filed returns in respect of capital stock taxes for the years ending June 30 in 1923, 1924 and 1925 under § 1000 of the Revenue Act of 1921 and § 700 of the Revenue Act of 1924.1 The first two reported taxes 1 Section 1000 of the Act of 1921 is the same as § 700 of the Act of 1924. Section 246 is the same in both Acts. Pertinent provisions of 192 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. due. In the other, respondent claimed to be an insurance company taxable under § 246, and consequently exempt from the capital stock tax. It made returns and paid income taxes for the calendar years 1921 to 1925 inclusive. In February, 1926, respondent paid under protest the capital stock taxes. It made application for refund and, that being denied, brought this action in the district court for eastern New York to recover the amounts so exacted. The parties submitted the case on an agreed statement of facts. The court gave judgment for the United States. 41 F. (2d) 793. The Circuit Court of Appeals reversed. 50 F. (2d) 107. The question is whether during the periods for which the capital stock taxes were paid, respondent was an insurance company taxable only under § 246. Respondent was organized in 1906 under Article V of the New York Insurance Law. It was formed to examine and guarantee title to real estate, to lend money on real estate mortgages and to guarantee such mortgages as to payment of principal and interest and to do the work generally of a title insurance company. It is under the supervision of the state superintendent of insurance, subject to the laws applicable to title and credit guaranty corporations, and maintains the required guaranty fund. Its business has always consisted of issuing two kinds of contracts: (1) those in which it merely guarantees title and (2) those in which it guarantees (a) title to real estate covered by a mortgage and (b) payment of principal and interest of the debt. Preliminary to the issue of title insurance policies first mentioned, respondent prepared abstracts and made examination of the title. Its charges were based upon a scale dependent upon the amounts of the policies, and included fees for examina- both are printed in the margin of our opinion in Bowers v. Lawyers Mortgage Co., ante, p. 182, and need not be repeated here. UNITED STATES v. HOME TITLE CO. 193 191 Opinion of the Court. tions, searches and other service incident to the transaction. Policies guaranteeing both title and payment of such mortgage debts were issued substantially as follows: When respondent received an application for a loan, it made an appraisal of the property and an examination of the title. Upon its approval of the application, it received from the borrower his bond and mortgage and paid him the amount of the bond, less charges for services incidental to title insurance and also for inspection and appraisal of the property. The fee covering title insurance was made a condition of every loan. Respondent did not charge any lending fee. It sold the loans at face value and delivered to the purchaser of each a mortgage guaranty or, in case of the sale of part of a loan, a participation certificate. By every such guaranty or certificate, the purchaser appointed respondent his agent to collect principal and interest of the loan, and the latter guaranteed (1) the mortgage to be a valid first lien upon a good and marketable title in fee, (2) payment of principal when collected and in any event within 12 months after maturity and (3) payment of interest at a rate usually one-half of one per cent, less than that specified in the bond. The difference was called premium. Generally, about two months elapsed between the making of loans and their sale. The interest for that period was retained by respondent and constituted a part of its gross income. It never held nor sold mortgages that were not acquired and guaranteed as above stated and never guaranteed other than those controlled by it. Its expenses were not assigned to its different classes of business, and its assets were used indiscriminately in connection with all its activities. Corporations organized under New York banking laws and subject to the supervision of the banking department are authorized to make mortgage loans and sell them with guaranties such as those given by respondent, 137818°—32----13 194 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. and. from 1921 to 1925 at least two companies thus organized and supervised were engaged in that business. Respondent’s policies merely guaranteeing title amounted to more than six times its mortgage guaranties. A tabular statement in the margin makes the comparison.2 Its title insurance, not connected with mortgage guaranties, outstanding in each of the five years amounted to more than $100,000,000. Another table3 states its gross income from sources other than interest, rents, dividends and profits on sale of bonds, and classifies such income so as to show: (1) the difference between interest received and that guaranteed by respondent; (2) fees and charges attributable to mortgage guaranties; (3) fees and charges attributable to title insurance where respondent did not 2 Column 1 shows the amount of policies merely guaranteeing titles and column 2 shows the amount of mortgage guaranties. 1 2 1921.................... $29,090,650 $4,359,346 1922...................... 46,050,180 7,319,246 1923 ..................... 67,138,820 7,989,950 1924 ..................... 69,442,530 11,341,239 1925................... 87,965,580 13,214,092 1921 1922 1923 1924 1925 (1) Mortgage guaranty premiums $90,449.14 $105,750.03 $134,349.66 $175,641.39 $227,869.93 (2) Inspection and appraisal fees 88,679.75 139,830.45 115,658.86 133,549.10 149,830.35 (3) Title insurance fees where no mortgage guaranty 270,030.79 406,019.93 565,155.86 576,771.36 714,949.06 (4) Title insurance fees where mortgage guaranty also 131,243. 75 206,945.45 171,172.14 197,649. 23 221,745.05 (5) Mortgage renewals 28,940.83 30,123.35 30,557.75 24, 745.35 44,779. 75 (6) Conveyancing fees 13,544.25 26,008.93 27, 779.00 33,668.40 35,340.67 (7) Charges for searches 3,693.77 6,497.46 7,945.91 11,398.30 14,749.09 (8) Recording fees 3,316.28 4,094.43 6, 723.69 6,133.14 9,252.70 (9) Charges for surveys 392.45 326.80 569.20 1,339.65 1,993.25 Total 630,291.01 925,596. 83 1,059,912.07 1,160,895.92 1,420,509.85 Other income 75,167.80 103,223.94 156,721.05 209,926.81 240,544.43 Total income 705,458.81 1,028,820.77 1,216,633.12 1,370,822.73 1,661,054.28 STEVENS v. THE WHITE CITY. 195 191 Syllabus. make nor guarantee mortgages or loans; (4) compensation for guaranteeing mortgages to be first liens upon titles in fee; (5) income from mortgage renewals; etc. The guaranty of payment of the principal and interest of mortgage loans constitutes insurance. Bowers n. Lawyers Mortgage Co., ante, p. 182. The amounts received as compensation for insuring title, for guaranteeing that mortgages are first liens and for guaranteeing payment constitute the larger part of respondent’s income. And, when there are added the fees and charges for examination of title, appraisals, and other services incident to its insurance business, the total properly assignable to that business amounts to more than 75 per cent, of all respondent’s income. Undeniably insurance is its principal business. Indeed, it does not appear that any substantial part of its transactions was not connected with or the outgrowth of insurance. The admitted facts clearly show that in the tax years above mentioned respondent was an “ insurance company ” within the meaning of that phrase as commonly understood and as used in the Revenue Acts of 1921 and 1924. It was taxable under § 246 and therefore exempt from capital stock taxes. Judgment affirmed. STEVENS v. THE WHITE CITY. CERTIORARI TO THE CIRCUIT COURT OF APPEALS FOR THE SECOND CIRCUIT. No. 217. Argued January 6, 1932.—Decided March 14, 1932. 1. An ordinary towage contract does not create a bailment, but surrenders to the tug only such control over the tow as is necessary for the performance of the tug’s engagement. P. 200. 2. This is so even where the owner of the tow has no one aboard her, or where his boatman, on board at the beginning, leaves before the voyage is ended, P, 201. 196 OCTOBER TERM, 1931. Argument for Petitioner. 285 U.S. 3. A suit by the owner of a tow against her tug to recover for an injury to the tow caused by negligence on the part of the tug is a suit ex delicto and not ex contractu. P. 201. 4. The tug is not liable as an insurer or as a common carrier. Its duty is to exercise such reasonable care and maritime skill as prudent navigators employ for the performance of similar service. P. 202. 5. In a suit against the tug for injury to the tow, the burden is upon the tow’s owner to show that the injury was caused by a breach of that duty. Id. 6. The mere fact that the tow was in good order when received by the tug and in damaged condition when delivered by it does not raise a presumption of negligence against the tug. Id. So held where the injury occurred while no one was with the flotilla save the owners of the tug, who could not explain when, how, or where the injury happened, and where there was nothing about the injury itself to warrant an inference that it resulted from fault or negligence on the part of the tug. 7. The burden of proving negligence in such a case is not satisfied by evidence which leaves the time, place, and cause of the injury in the realm of conjecture, and which is as consistent with an hypothesis that the tug was not negligent as with one that it was. P. 203. 8. The party causing unnecessary parts of the record to be printed may be charged with the cost of printing them, under Rule 13, par. 9. P. 204. 48 F. (2d) 557, affirmed. Certiorari, 284 U. S. 602, to review the reversal of a decree in admiralty awarding damages against a tug for injury to her tow. For opinion of the District Court see 35 F. (2d) 1006. Mr. Neil P. Cullom, with whom Mr. William F. Purdy was on the brief, for petitioner. A tug performing a simple towage contract is a bailee for hire, particularly where the tow is manned only by a servant or bargee, who is not present during the period when the injury to the tow takes place. Maryland Transp. Co. v. Dempsey, 279 Fed. 94; The Margaret, 94 U. S. 494; The Dayton, 120 U. S. 337; Clark v. United STEVENS v. THE WHITE CITY. 197 195 Opinion of the Court. States, 95 U. S. 539; Sun Printing Assn. v. Moore, 183 U. S. 642; Doherty v. Pennsylvania R. Co., 269 Fed. 959, 962; McWilliams Bros. v. Director General, 271 Fed. 931, 932; Hughes on Admiralty, 2nd ed., p. 129; 38 Cyc., Towage, p. 563; Brinton and Drifting Barges, 48 F. (2d) 559; Washington ex rel. Lumber Co. v. Kuykendall, 275 U. S. 207; The Webb, 14 Wall. 406 (dist.); Transportation Line v. Hope, 95 U. S. 297 (dist.); Alexander v. Greene, 3 Hill (N. Y.) 9; The Princeton, 19 Fed. Cas. 11,433, p. 1342; Bust v. Cornell, 24 Fed. 188; The D. Newcomb, 16 Fed. 274; Sturgis v. Boyer, 24 How. 110; The Delaware, 43 F. (2d) 852; The Genesee, 139 Fed. 549; The Seven Sons, 29 Fed. 543; Newport NewsS.B.&D.D.Co.,34Fed.(2d) 100. Where a bailee for hire receives property in good condition and delivers it damaged, a prima facie case of negligence is made, which casts upon the bailee the burden of showing the circumstances of the damage. Southern Ry. Co. v. Prescott, 240 U. S. 632, 640; Cummings v. Pennsylvania R. Co., 45 F. (2d) 153; Wintringham v. Hayes, 144 N. Y. 5; Strauss v. Canadian Pacific Ry. Co., 254 N. Y. 407; Oppenheim v. Kridel, 236 N. Y. 156; Susquehanna Coal Co. v. Eastern Dredging Co., 200 Fed. 317; Gilchrist Transp. Co. v. Great Lakes Towing Co., 237 Fed. 432; The Mason, 249 Fed. 718; Vessel Owners Towing v. Wilsa, 63 Fed. 626; The Delaware, 43 F. (2d) 852. There was ample proof of negligence on the part of the owners of the White City as well as facts from which the court could reasonably infer that the damage was caused by a negligent act. Mr. Chauncey I. Clark, with whom Messrs. Florence J. Sullivan, Sanford H. Cohen and Frederic Conger were on the brief, for respondent. Mr. Justice Butler delivered the opinion of the Court. Petitioner, the assignee of the owner of a forty-five foot motorboat, the Drifter, filed a libel in admiralty in 198 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. the southern district of New York against respondent to recover for injury sustained by the former while being towed by the latter. The court held that the tug was a bailee of the tow and that, it having been shown by the evidence that the former received the latter in good condition and delivered it damaged without being able to account for the injury, there was a presumption of negligence on the part of the tug and that she must be held liable. 35 F. (2d) 1006. The Circuit Court of Appeals held the towage contract did not put the tow in bail to the tug and that the mere fact of injury created no presumption of negligence, and reversed the decree. 48 F. (2d) 557. Petitioner maintains that the tug was bailee for hire and that, by proving the tug received the tow in good order and delivered it in a damaged condition, he made a prima facie case of negligence which cast upon such bailee the burden of showing the circumstances surrounding the damage. And he insists that, even if the presumption did not so arise, there was ample proof of negligence on the part of the owners of respondent. The facts supported by the evidence, so far as they are material to these contentions, may be stated briefly as follows: October 13,1925, Roos, an employee of the Consolidated Shipbuilding Corporation, which had just completed the Drifter, made an agreement with Alexander Simpson for its towage from the builder’s plant at Morris Heights in New York City to Port Newark alongside the steamer Suscalanco on which it was to be shipped. Later, Simpson told Roos that the White City, an excursion boat owned by Herbert Simpson and one Rhodes, would do the towing. Roos told Simpson that the boat should be at the plant at six o’clock in the morning. Her owners brought her about eight and were the only persons aboard at any time here involved. Employees of the builder as- STEVENS v. THE WHITE CITY. 199 195 Opinion of the Court. sisted in attaching the Drifter, then in good condition, to the White City by a forty foot rope. A cradle in which the former was to be stowed on the deck of the Suscalanco was attached by another rope about the same length to the stern of the Drifter. The builder put an employee, one Weston, on the Drifter, merely, as petitioner maintains, to tend lines when she was brought alongside the Suscalanco. Respondent took the tow down the East River; the cradle became detached at Hell Gate; reattaching it caused delay of fifteen or twenty minutes, but no damage occurred to the Drifter at that time. Respondent continued down the river, across the Upper Bay, through Kill van Kull and into Newark Bay, where, about five o’clock in the afternoon, she sighted the Suscalanco going out to sea. Then the tug went to Fisher’s Dock in Bayonne, and her owners having learned by telephone that the shipment could be made on a later steamer, remained there over night. The Drifter was tied alongside the pier with fenders to prevent injury. Weston, with the acquiescence of the owners of the tug, went home for the night but did not return. Simpson testified that on the morning following he went aboard the Drifter to steer her while she and the cradle were being towed to destination; that before leaving the dock he inspected her and that she was in the same condition as when received. When they arrived at Port Newark, about eight in the morning, the Drifter’s hull planking was broken or damaged amidships on the starboard side just above the water line causing a dish-shaped depression about three-quarters of an inch deep, roughly circular and about twelve or fourteen inches in diameter. At the trial it was suggested by way of explanation that the hole might have been made by a piece of driftwood, of which there was much in the bay. But there was no evidence to show, and the trial court found that neither Rhodes nor Simp- 200 OCTOBER TERM, 1931. Opinion of the Court. 285U.S. son could explain, when, how or where the damage happened. Decisions of this Court show that under a towage contract the tug is not a bailee of the vessel in tow or its cargo. And it is established here and by numerous rulings of lower federal courts that evidence showing a tug’s receipt of a tow in good order and delivery in damaged condition raises no presumption of negligence. The supplying of power by a vessel, usually one propelled by steam, to tow or draw another is towage. Many vessels, such as barges and canal boats, have no power of their own and are built with a view to receiving their propelling force from other sources. And vessels having motive power often employ auxiliary power to assist them in moving about harbors and docks. Benedict on Admiralty, 5th ed., § 100. The tug does not have exclusive control over the tow but only so far as is necessary to enable the tug and those in charge of her to fulfill the engagement. They do not have control such as belongs to common carriers and other bailees. They have no authority over the master or hands of the towed vessel beyond such as is required to govern the movement of the flotilla. In all other respects and for all other purposes the vessel in tow, its cargo and crew, remain under the authority of its master; and, in emergency the duty is upon him to determine what shall be done for the safety of his vessel and her cargo. In all such cases the right of decision belongs to the master of the tow and not to the master of the tug. A contract merely for towage does not require or contemplate such a delivery as is ordinarily deemed essential to bailment. The Steamer Webb, 14 Wall. 406, 414. Transportation Line v. Hope, 95 U. S. 297, 299. The L. P. Dayton, 120 U. S. 337, 351. The Propeller Burlington, 137 U. S. 386, 391. The J. P, Donaldson, 167 U. S. 599, 603, 604. Alexander v. Greene, 3 Hill 1, 19. Wells v. Steam Navigation STEVENS v. THE WHITE CITY. 201 195 Opinion of the Court. Co., 2 Comstock 204, 208. Cf. American Ry. Express Co. v. American Trust Co., 47 F. (2d) 16, 18. Bertig v. Norman, 101 Ark. 75, 81; 141 S. W. 201; Sawyer v. Old Lowell National Bank, 230 Mass. 342,346; 119 N. E. 825; Blon-dell v. Consol. Gas Co., 89 Md. 732, 746; 43 Atl. 817; Gilson v. Pennsylvania R. Co,, 86 N. J. L. 446, 449 ; 92 Atl. 59. Fletcher v. Ingram, 46 Wis. 191, 202; 50 N. W. 424. The owner of the Drifter did not surrender to respondent any right of control that does not pass in virtue of a contract merely for towage. The fact that the man put aboard by the builder did not remain to the end, Or that the owner did not choose to keep some one on the tow, is immaterial. Petitioner’s claim against respondent is not for breach of contract but one in tort. His allegations and proof in respect of the agreement between the parties were made by way of inducement to his real grievance, which was the damage to the Drifter claimed to have been caused by negligence of the respondent. It has long been settled that suit by the owner of a tow against her tug to recover for an injury to the tow caused by negligence on the part of the tug is a suit ex delicto and not ex contractu. The Quickstep, 9 Wall. 665, 670. The Steamer Syracuse, 12 Wall. 167, 171. The J. P. Donaldson, supra, 603. The John G. Stevens, 170 U. S. 113, 125. The Brooklyn, Fed. Cas. No. 1,938; 2 Ben. 547. The Deer, Fed. Cas. No. 3,737; 4 Ben. 352. The Arturo, 6 Fed. 308. In the case last cited Judge Lowell said (p. 312): “ These cases of tow against tug are, in form and fact, very like collision cases. The contract gives rise to duties very closely resembling those which one vessel owes to others which it may meet.” In The John G. Stevens, supra, this court cited The Arturo, approvingly and said (p. 126): “ The essential likeness between the ordinary case of a collision between two ships, and the liability of a tug to her tow for damages caused to the latter by a collision with a 202 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. third vessel, is exemplified by the familiar practice in admiralty . . . which allows the owner of a tow, injured by a collision caused by the conduct of her tug and of another vessel, to sue both in one libel, and to recover against either or both, according to the proof at the hearing.” And the rule that the lien for damages occasioned by negligent towage takes precedence of liens for supplies previously furnished the offending vessel rests upon the ground that the claim, like those in case of collision, is one in tort arising out of duty imposed by law and independently of any contract or consideration for the towage. The John G. Stevens, supra, 126. The Arturo, supra. While respondent was not an insurer or liable as a common carrier, it owed to the owner of the Drijter the duty to exercise such reasonable care and maritime skill as prudent navigators employ for the performance of similar service. The burden was upon petitioner to show that the loss for which he sought recovery was caused by a breach of that duty. The mere fact that the Drijter was in good order when received by respondent and in damaged condition when delivered does not raise any presumption of fault. As said by this court in The L. P. Dayton, supra, (p. 351): “ To hold otherwise would require that in every case, as between the tow and its tug, the latter should be required affirmatively to establish its defence against the presumption of its negligence. . . . [p. 352.] Neither is it material that the facts of the case and the causes of the collision are peculiarly within the knowledge of the respondents. It is alleged in the present case, as one of the inconveniences of the libellant’s situation, that it would be compelled, in order to establish the allegations of the libel, to resort to the testimony of those navigating the respective tugs, and thus call witnesses interested to exonerate the vessel to which they were attached. We are not aware, however, of any ground on which such an inconvenience can affect the rule of law which governs STEVENS v. THE WHITE CITY. 203 195 Opinion of the Court. the rights of the parties.” See The Steamer Webb, supra; Transportation Line v. Hope, supra. The rule has been applied in numerous cases in the lower federal courts.1 There is nothing about the injury itself to warrant any inference that it resulted from fault or negligence on the part of respondent. There is no support for petitioner’s contention that, without regard to the asserted presumption, the evidence shows that the injury to the Drifter was caused by negligence of respondent. The facts to which he refers are these: The tug arrived at the plant two hours late; respondent remained over night at Bayonne without authority and left the Drifter without a watchman; on the following morning, without effort to obtain the services of Weston or another, the tug proceeded to Port Newark. He calls attention to the absence of evidence further to show how the Drifter was moored at Bayonne and whether she was lighted during the night. On that basis he argues that it is possible that the injury occurred during the night; that the Drifter “might have been rammed by some other boat or if the lines were not slackened and the tide receded she might have been hanging on the side of the dock as the result whereof, a pile might have stove a hole in her side.” The burden of proof as to respondent’s negligence remained upon petitioner throughout the trial. His contentions clearly show that the evidence leaves the time, place and cause of the injury 1 Wilson v. Sibley (S. D. Ala.) 36 Fed. 379. The A. R. Robinson (Wash.) 57 Fed. 667. The W. H. Simpson (C. C. A.) 80 Fed. 153. Pedersen v. Spreckles (C.C. A. 9) 87 Fed. 938, 944—5. El Rio (S. D. Ala.) 162 Fed. 567. The Kunkle Bros. (N. D. Ohio) 211 Fed. 540, 543. The R. B. Little (C. C. A. 2) 215 Fed. 87. The Atlantic City (C. C. A. 4) 241 Fed. 62, 64. The Clarence L. Blakeslee (C. C. A. 2) 243 Fed. 365. Aldrich v. Pennsylvania R. Co. (C. C. A. 2) 255 Fed. 330. The Greenwich (C. C. A. 2) 270 Fed. 42. The W. H. Baldwin (C. C. A. 2) 271 Fed. 411, 513. The Ashwaubemie (C. C. A. 4) 3 F. (2d) 782. The Buttercup (E. D. La.) 8 F. (2d) 281. Southgate v. Eastern Transp. Co. (C. C. A. 4) 21 F. (2d) 47, 49. 204 OCTOBER TERM, 1931. Opinion of the Court. 285 U. S. in the realm of conjecture. The evidence is consistent with an hypothesis that the tug was not negligent and with one that it was, and therefore has no tendency to establish either. Gunning v. Cooley, 281 U. S. 90, 94, and cases cited. We find that respondent caused unnecessary parts of the record to be printed amounting in all to 180 pages. This is admitted in a statement filed by counsel for respondent. The cost of such printing will be charged to respondent. Rule 13, par. 9. Decree affirmed. D. GINSBERG & SONS, INC. v. POPKIN. CERTIORARI TO THE CIRCUIT COURT OF APPEALS FOR THE SECOND CIRCUIT. No. 429. Argued February 16, 1932.—Decided March 14, 1932. A court of bankruptcy has no authority under § 2 (15) of the Bankruptcy Act or § 261 of the Judicial Code to issue a writ of ne exeat against an absconding officer of a bankrupt corporation to the end that he may be examined in the bankruptcy proceedings. P. 206. 50 F. (2d) 693, affirmed. Certiorari, 284 U. S. 609, to review the reversal of an order sustaining the issuance of a writ of ne exeat in bankruptcy proceedings. Dist. Ct., 47 F. (2d) 276. Mr. Leo J. Linder, with whom Mr. Raymond J. Mawhinney was on the brief, for petitioner. Mr. Louis Jersawit for respondent. Mr. Justice Butler delivered the opinion of the Court. The district court in the eastern district of New York adjudged the Foster Construction Corporation a bankrupt, and in June, 1930, a trustee was appointed. Respondent was president and petitioner was a creditor of GINSBERG & SONS v. POPKIN. 205 204 Opinion of the Court. the corporation. December 4, 1930, petitioner presented to one of the judges in the southern district of New York a petition, the brief substance of which follows: In 1929, about the time the petition in bankruptcy was filed, respondent withdrew, and has failed to account for, a large amount of cash belonging to the corporation. He fled to Canada in order to avoid examination and did not return until January, 1930. About that time the court in the eastern district issued an order of ne exeat against him, but he fled again and later returned to the borough of Manhattan, where he was then concealing himself with the intention of immediately leaving the United States to avoid examination. The petition stated that respondent’s testimony would be in aid of creditors and that, had he been requested so to do, the trustee would have refused to apply for his arrest, and that therefore the petitioner made the application for an ancillary order of examination and arrest in aid of itself and other creditors. It was shown that a judge in the eastern district authorized petitioner to apply for this order in the southern district. On these representations the judge made an order of examination and arrest. And on the same day he signed another order, under the caption “Writ Ne Exeat,” commanding the marshal to apprehend respondent, take him into custody and bring him before the judge for examination “ or, at his option, cause him to give sufficient bail or security in the sum of $10,000 . . . that he the said Joseph Popkin will not depart from or go . . . beyond the territorial jurisdiction of this court without its leave, and will at all times and in all manner, respect and things, obey and comply with the lawful orders and decrees of the court herein for his examination, in default of which he is to be lodged in New York County Jail . . . .” In obedience to that command the marshal arrested respondent. He gave the prescribed bail and 206 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. the clerk released him from custody. Then respondent applied to a judge in the southern district to have the order vacated on the ground that it was made without jurisdiction. The motion was denied. 47 F. (2d) 276. The Circuit Court of Appeals reversed. 50 F. (2d) 693. The petitioner contends that clause (15) of § 2 empowers district judges in bankruptcy cases, upon the application of a creditor, to issue orders directing the arrest of officers of bankrupt corporations. The words of § 2 relied on are: “ The courts of bankruptcy . . . are hereby invested . . . with such jurisdiction at law and in equity as will enable them to exercise original jurisdiction in bankruptcy proceedings . . . to . . . (15) make such orders, issue such process, and enter such judgments in addition to those specifically provided for as may be necessary for the enforcement of the provisions of this Act.” Clause (15) is to be construed having regard to the other parts of § 2, to the provisions of the Act in respect of examinations concerning the business and. property of bankrupts, and to § 261 of the Judicial Code relating to writs of ne exeat. Section 2 creates courts of bankruptcy and in general terms, by twenty separately numbered clauses, confers upon them authority in respect of at least as many matters relating to bankruptcies. By clause (13) bankruptcy courts are empowered by means of fine or imprisonment to enforce obedience by bankrupts and others to all lawful orders, and by clause (16) to punish persons for contempts committed before referees. Section 7a (9) makes it the duty of the bankrupt, when present at the first meeting of creditors and at such other times as the court shall order, to submit to examination concerning his business, acts and property. Section 21a empowers the court upon the application of a creditor to require any designated person, including the bankrupt, to appear for simi- GINSBERG & SONS v. POPKIN. 207 204 Opinion of the Court. lar examination. Section 9a exempts the bankrupt from arrest upon civil process issued from a court of bankruptcy except for contempt or disobedience of its lawful orders. And § 9b specifically governs arrests and detention of bankrupts about to leave the district in order to avoid examination. It is as follows: “ The judge may, at any time after the filing of a petition by or against a person, and before the expiration of one month after the qualification of the trustee, upon satisfactory proof by the affidavits of at least two persons that such bankrupt is about to leave the district in which he resides or has his principal place of business to avoid examination, and that his departure Will defeat the proceedings in bankruptcy, issue a warrant to the marshal, directing him to bring such bankrupt forthwith before the court for examination. If upon hearing the evidence of the parties it shall appear to the court or a judge thereof that the allegations are true and that it is necessary, he shall order such marshal to keep such bankrupt in custody not exceeding ten days, but not imprison him, until he shall be examined and released or give bail conditioned for his appearance for examination, from time to time, not exceeding in all ten days, as required by the court, and for his obedience to all lawful orders made in reference thereto.” Section 261 of the Judicial Code provides that writs of ne exeat may be granted by any district judge in cases where they might be granted by the district court of which he is a judge, and declares: “ But no writ of ne exeat shall be granted unless a suit in equity is commenced, and satisfactory proof is made to the court or judge granting the same that the defendant designs quickly to depart from the United States.” In view of the general exemption of bankrupts from arrest under § 9a and the carefully guarded exception made by § 9b as to those about to leave the district to 208 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. avoid examination, there is no support for petitioner’s contention that the general language of § 2 (15) is a limitation upon § 9 (b) or grants additional authority in respect of arrests of bankrupts. General language of a statutory provision, although broad enough to include it, will not be held to apply to a matter specifically dealt with in another part of the same enactment. United States v. Chase, 135 U. S. 255, 260. Specific terms prevail over the general in the same or another statute which otherwise might be controlling. Kepner v. United States, 195 U. S. 100, 125. In re Hassenbusch, 108 Fed. 38. United States v. Peters, 166 Fed. 613, 615. The construction contended for Would violate the cardinal rule that, if possible, effect shall be given to every clause and part of a statute. Market Co. v. Hoffman, 101 U. S. 112, 115. Ex parte Public National Bank, 278 U. S. 101, 104. Assuming that under § 2 (15) bankruptcy courts are empowered to allow writs of ne exeat, that granted in this case was without warrant, for conditions made essential by the common law and as well by the Judicial Code were lacking. Speaking for the Supreme Court of Wisconsin in Davidor v. Rosenberg, 130 Wis. 22; 109 N. W. 925, Mr. Justice Winslow described the writ of ne exeat as follows (p. 24): “At common law it was simply a writ to obtain equitable bail. It was issued by a court of equity on application of the complainant against the defendant when it appeared that there was a debt positively due, certain in amount or capable of being made certain, on an equitable demand not suable at law (except in cases of account and possibly some other cases of concurrent jurisdiction), and that the defendant was about to leave the jurisdiction, having conveyed away his property, or under other circumstances which would render any decree ineffectual. Dean v. Smith, 23 Wis. 483. Rhodes n. AETNA CASUALTY CO. v. PHOENIX CO. 209 204 Syllabus. Cousins, 6 Hand. 188, 191, 18 Am. Dec. 715; Gibert N. Colt, 1 Hopk. Ch. 496, 14 Am. Dec. 557, and note.” The writ is a restraint upon the common right of movement from place to place within the United States and upon emigration. It has been abolished in some States and its use is largely regulated and restricted by statute in others.* And § 261 of the Judicial Code strictly governs the granting of the writ in federal courts. Section 9 (b) provides a substitute for and so excludes the use of the writ against bankrupts. As respondent is not a bankrupt, that subdivision does not authorize his arrest or afford him protection. There is no reason for stricter measures to compel others to submit to examination. General authority to compel attendance and the giving of testimony is conferred by § 21a and § 2 (13) and (16). And, in the absence of language specifically disclosing that purpose, Congress will not be deemed to have intended to subject officers of bankrupt corporations or other witnesses to arrests and detentions, by writ of ne exeat or otherwise, against which § 9a and b protects bankrupt persons. We conclude that the court had no authority under § 2 (15) or otherwise to make the order of arrest and ne exeat under consideration. Judgment affirmed. AETNA CASUALTY & SURETY CO. v. PHOENIX NATIONAL BANK & TRUST CO. CERTIORARI TO THE CIRCUIT COURT OF APPEALS FOR THE SIXTH CIRCUIT. No. 413. Argued January 25, 1932.—Decided March 14, 1932. 1. A surety company’s undertaking to indemnify and hold harmless a bank from any loss through payment of falsely raised checks or * See authorities cited in note, 14 Am. Dec. 560. 137818°—32----14 210 OCTOBER TERM, 1931. Argument for Respondent. 285 U.S. forged endorsements implies a right of subrogation to claims which the bank might assert against depositors upon whose accounts such checks are drawn, based on their alleged negligence in drawing them or in not notifying the bank of the forgeries. P. 214. 2. Under such a contract the liability of the surety which accrues when a forged check is paid, is discharged when the bank relinquishes its right against the depositor. Id. 3. In a suit for indemnity in which the defense is relinquishment of a claim of right to which the indemnitor should have been subrogated, the burden rests upon the indemnitee to show that the claim was unsubstantial. P. 216. 4. Under a contract to indemnify a bank from loss through payment of forged checks, the indemnitor is liable and may be sued when such check has been paid. The bank is not called upon first to defend against claims of the depositor or prosecute its own claims against endorsers. Id. 44 F. (2d) 511, reversed. Certiorari, 284 U. S. 608, to review the reversal of a judgment in favor of the above-named petitioner in an action by the bank on a contract of indemnity. Mr. Samuel M. Wilson, with whom Messrs. Charles Kerr, Clinton M. Harbison, and A. K. Shipe were on the brief, for petitioner. Mr. James Park, with whom Messrs. Richard C. Stoll and Wallace Muir were on the brief, for respondent. The loss covered by the bond was the loss of the bank’s own money. It was sustained when the checks were paid, irrespective of any possible right of recoupment in special cases by future implied ratification by a depositor, estoppel of a depositor to assert the forgery, or recourse upon responsible endorsers. Fitchburg Savings Bank v. Massachusetts B. & I. Co., 174 N. E. 324; Sprague v. West Hudson County Trust Co., 92 N. J. Eq. 639; First Nat. Bank v. Merchants Trust Co., 140 Atl. 582; Royal Indemnity Co. v. American Vitrified Products Co., 158 N, E, 827; Kimbell Trust & S. Bank v. Hartford Accident AETNA CASUALTY CO. v. PHOENIX CO. 211 209 Opinion of the Court. & Ind. Co., 333 Ill. 318; Royal Indemnity Co. v. North Texas Nat. Bank, 25 S. W. (2d) 822. The bank was not required to attempt recoupment of its loss sustained at the time of payment before proceeding against the insurer. Champion Ice Mjg. Co. v. American Bonding Co., 115 Ky. 863; First Nat. Bank v. U. S. Fidelity & G. Co., 137 N. W. 744; National Surety Co. v. Sheridan County, 33 F. (2d) 473. Even if the loss was sustained by the bank upon the recredit to the depositor’s account, this does not defeat recovery in this action, as a legal adjudication of the bank’s liability is not required. Ocean Accident & G. Corp. v. Old Nat. Bank, 4 F. (2d) 753; Globe Indemnity Co. v. 'Union & Planters Trust Co., 27 F. (2d) 496. The petitioner has not shown that the recredit to the depositor’s account was voluntary,—that is that the bank was not legally liable to make such a recredit—because (a) a depositor is under no duty to examine endorsements on cancelled checks for forgery; he has a right to assume that the bank has ascertained their genuineness; (b) knowledge of the depositor’s agent, and officer, committing the fraud, is not attributable to the depositor; (c) though the depositor be negligent in the examination of the cancelled checks, the bank must be free of negligence in paying them to defeat liability to the depositor; (d) the burden is upon one asserting non-liability of the bank to the depositor to show that the bank was not negligent in the payment of the checks; and (e) the delay of the depositor in discovering the forgery must be shown to have prejudiced the bank. The bank would have incurred a hazard not covered by the bond if it had refused to make the recredit demanded by the depositor. Mr. Justice Stone delivered the opinion of the Court. This suit was brought by respondent, a national bank, in the Circuit Court of Fayette County, Kentucky, to re- 212 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. cover on a bond of indemnity issued by the petitioner. The cause was removed to the United States District Court for the Eastern District of Kentucky, which, after a trial by the court upon an agreed statement of facts, gave judgment for petitioner. Judgment of reversal by the Court of Appeals for the Sixth Circuit, 44 F. (2d) 511, is here for review on certiorari. The indemnity bond, issued upon payment of a stipulated premium, undertook to indemnify the respondent for “ any loss through the payment ... of forged or raised checks or (genuine) checks bearing forged endorsements. . . .” On different dates between May 12, 1924, and June 23, 1925, while the bond was in force, a corporation depositor of respondent drew thirty-nine checks upon its deposit account in favor of third persons. The endorsements of the payee on thirty-five of the checks were forged, and the amounts payable on the other four and on eighteen others were raised by one Fulton, who was the vice president and treasurer of the depositor, having charge of its checkbooks and books of account. Authority to sign the checks was vested in the president and one other, who was not an officer of the depositor. All the checks bore genuine endorsements made subsequent to the forgeries, two of them by Fulton alone. All were paid by respondent on presentation, and the amounts paid were charged to the depositor’s account. Monthly statements were rendered to the depositor, accompanied by the cancelled checks. No agents or representatives of the depositor other than Fulton, the forger, examined the depositor’s accounts, cancelled checks, or books of account. The checks were prepared for signature by Fulton. The representatives of the depositor who signed them relied wholly on him for their accuracy and for the names of the payees. All of the raised checks “were completed in writing by Fulton, except that the line for the application of the protectograph was left blank, and AETNA CASUALTY CO. v. PHOENIX CO. 213 209 Opinion of the Court. were signed, before the application of the protectograph to them. And Fulton was trusted to fill in the line stating the amount of the cheque, with the protectograph, and was charged with the duty of delivering the cheques, whether by mail or in person.” About August 7th, a month after the payment of the last check, the depositor gave notice of the forgeries to the respondent and demanded that the sum of $5,512.72, representing so much of the payments as were induced by the forgeries, be recredited to its account. The respondent in turn asked payment of that amount of petitioner in satisfaction of its liability on the indemnity bond. Pe-tioner, while admitting liability if respondent was not authorized to charge the depositor with the loss, insisted that the depositor was so chargeable because of its negligence and delay in notifying respondent of the forgeries and its negligence in drawing the checks. It offered to defend any suit brought against the respondent by the depositor with respect to the loss, and asked respondent to give notice of the forgeries to prior endorsers and to demand reimbursement from them. Respondent failed to comply with any of these requests and later credited its depositor with the disputed amount. The petitioner, by way of defense, set up specifically the bank’s assumption of the loss by crediting the depositor in the face of the latter’s alleged negligence and omissions. The court below thought that the question presented was merely one of the time of the loss indemnified against, and as that had occurred when the checks were paid by respondent, later events determining the ultimate incidence of the loss as between the bank and its depositor or endorsers, were immaterial. Hence it concluded that the subsequent credit to the depositor of the amount of the loss and the consequent relinquishment of any claim against the depositor or others, had no bearing on the liability of the indemnitor. The court said: 214 OCTOBER TERM, 1931. Opinion of the Court. 285 U.S. “. . . in the present case, the loss was suffered and the liability arose from time to time as the checks were paid; and, when finally the bank cancelled the charges and recredited the total, it was not then suffering a loss; it was abandoning a claim for recoupment of its earlier loss—a claim which at first it did not have. We think, therefore, that the policy should be read as indemnity against the original loss, and not as holding the liability in the air until it can finally be determined whether the bank had a right to make the charge back.” 44 F. (2d) 511, 512. We think that the respondent could not relinquish any claims it might have had against the depositor and preserve unimpaired its right to the indemnity. Petitioner’s undertaking “ to indemnify . . . and hold harmless ” the respondent from any loss sustained by reason of the specified payments, contained no words indicating an intention to destroy the indemnitor’s usual privilege of subrogation to the indemnitee’s right to recover from any who are liable to it for the loss. That privilege was a necessary incident to petitioner’s contract, for only by resort to it could the character of the contract as indemnity be preserved. It is both the object and the justification of subrogation that it makes exact indemnity the measure of the liability. See Standard Marine Insurance Co., Ltd. v. Scottish Metropolitan Assurance Co., Ltd., 283 U. S. 284; United States v. American Tobacco Co., 166 U. S. 468; St. Louis, Iron Mountain & Southern Ry. Co. v. Commercial Union Ins. Co., 139 U. S. 223, 235; Hall