DocketNumber: Nos. 61, 63
Judges: Jackson, Murphy, Rutledge
Filed Date: 2/11/1946
Status: Precedential
Modified Date: 10/19/2024
delivered' the opinion of the Court.
These cases bring for decision important questions concerning the Administrator’s right to judicial enforcement of subpoenas duces tecum issued by him in the course of investigations conducted pursuant to § 11 (a) of the Fair Labor Standards Act. 52 Stat. 1060. His claim is founded directly upon § 9, which incorporates the enforcement provisions of §§ 9 and 10 of the Federal Trade Commission Act, 38 Stat. 717.
In No. 63, the Circuit Court of Appeals for the Third Circuit likewise rejected the company’s position, one judge dissenting on the ground that probable cause had not been shown. 148 F. 2d 57. It accordingly reversed the district court’s order of dismissal in the proceeding, to show cause, which in effect denied enforcement for want of a showing of coverage. 49 F. Supp. 659.
Because of the importance of the issues for administration of the Act and also on account of the differences in the grounds for the two decisions, as well as between them
The issues have taken wide range. They are substantially the same in the two causes, except in one respect to be noted.
I.
Coloring almost all of petitioners’ position, as we understand them, is a primary misconception that the First Amendment knocks out any possible application of the Fair Labor Standards Act to the business of publishing and distributing newspapers. The argument has two prongs.
The broadside assertion that petitioners “could not be covered by the Act,” for the reason that “application of this Act to its newspaper publishing business would violate its rights as guaranteed by the First Amendment,” is
Petitioners’ narrower argument, of allegedly invalid classification,
Reliance upon Grosjean v. American Press Co., 297 U. S. 233, to support these claims is misplaced. There the state statute singled out newspapers for special taxation and was held in effect to graduate the tax in accordance with volume of circulation. Here there was no singling out of the press for treatment different from that accorded other business in general. Rather the Act’s purpose was to place publishers of newspapers upon the same plane with other businesses and the exemption for small newspapers had the same object. 83 Cong. Rec. 7445. Nothing in the Grosjean case forbids Congress to exempt some publishers because of size from either a tax or a regulation which would be valid if applied to all.
What has been said also disposes of the contention drawn from the scope of the commerce power and its applicability to the publishing business considered independently of the Amendment’s influence. Associated Press v. Labor Board, supra; Associated Press v. United States, supra.
II.
Other questions pertain to whether enforcement of the subpoenas as directed by the circuit courts of appeals will violate any of petitioners’ rights secured by the Fourth
The short answer to the Fourth Amendment objections is that the records in these cases present no question of actual search and seizure, but raise only the question whether orders of court for the production of specified records have been validly made; and no sufficient showing appears to justify setting them aside.
Petitioners’ plea that the Fourth Amendment places them so far above the law tnat they are beyond the reach of congressional and judicial power as those powers have been exerted here only raises the ghost of controversy long since settled adversely to their claim.
The cited authorities would be sufficient to dispose of the Fourth Amendment argument, and more recent decisions confirm their ruling.
There are two difficulties with petitioners’ theory concerning the intent of Congress. One is that the argument from the so-called legislative history flies in the face of the powers expressly granted to the Administrator and the courts by §§ 9 and 11 (a), so flatly that to accept petitioners’ view would largely nullify them.
Accordingly, if. §§ 9 and 11 (a) are not to be construed as authorizing enforcement of the orders, it must be, as petitioners say, because this construction would make them so dubious constitutionally as to compel resort to an interpretation which saves rather than to one which destroys or is likely to do so. The Court has adopted this course at least once in this type of case.
The primary source of misconception concerning the Fourth Amendment’s function lies perhaps in the identification of cases involving so-called “figurative” or “constructive” search with cases of actual search and seizure.
The confusion is due in part to the fact that this is the very kind of situation in which the decisions have moved with variant direction, although without actual conflict when all of the facts in each case are taken into account. Notwithstanding this, emphasis and tone at times are highly contrasting, with consequent overtones of doubt and confusion for validity of the statute or its application. The subject matter perhaps too often has been generative of heat rather than light, for the border along which the cases lie is one where government intrudes upon different areas of privacy and the history of such intrusions has brought forth some of the stoutest and most effec
The matter of requiring the production of books and records to secure evidence is not as one-sided, in this kind of situation, as the most extreme expressions of either emphasis would indicate. With some obvious exceptions, there has always been a real problem of balancing the public interest against private security. The cases for protection of .the opposing interests are stated as clearly as anywhere perhaps in the summations, quoted in the margin,
The confusion obscuring the basic distinction between actual and so-called “constructive” search has been accentuated where the records and papers sought are of corporate character, as in these cases. Historically private corporations have been subject to broad visitorial power, both in England and in this country. And it long has been established that Congress may exercise wide investigative power over them, analogous to the visitorial power of the incorporating state,
The Wilson case has set the pattern of later, decisions and has been followed without qualification of its ruling.
Without attempt to summarize or accurately distinguish all of the cases, the fair distillation, in so far as they apply merely to the production of corporate records and papers in response to a subpoena or order authorized by law and safeguarded by judicial sanction, seems to be that the Fifth Amendment affords no protection by virtue of the self-incrimination provision, whether for the corporation or for its officers; and the Fourth, if applicable, at the most guards against abuse only by way of too much indefiniteness or breadth in the things required to be “particularly described,” if also the inquiry is one the demanding agency is authorized by law to make' and the materials specified are relevant. The gist of the protection is in the requirement, expressed in terms, that the disclosure sought shall not be unreasonable.
As this has taken form in the decisions, the following specific results have been worked out.. It is not necessary,
When these principles are applied to the facts of the present cases, it- is impossible to conceive how a violation of petitioners’ rights could have been involved. Both
More recent confirmation of those rulings may be found in Endicott Johnson Corp. v. Perkins, supra, and Myers v. Bethlehem Corp., 303 U. S. 41. It is true that these cases involved different statutes substantially and procedurally. But, notwithstanding the possible influence of the doctrine of governmental immunity to suit in the Endicott Johnson case, it would be anomalous to hold that under the Walsh-Healey Act, 49 Stat. 2036, the district court was not authorized to decide the question of coverage or, on the basis of its adverse decision, to deny enforcement to the Secretary’s subpoena seeking relevant evidence on that question, because Congress had committed its initial determination to him; and at the same time to rule that Congress could not confer the same power upon the Administrator with reference to violations of the Fair Labor Standards Act.
The Myers case did not involve a subpoena duces tecum, but was a suit to enjoin the National Labor Relations Board from holding a hearing upon a complaint against an employer alleged to be engaged in unfair labor practices forbidden by the Wagner Act, 49 Stat. 449. The hearing required an investigation and determination of coverage, involving as in this case the question whether the company was engaged in commerce. It denied this upon allegations thought to sustain the denial, as well as
On the other hand, petitioners’ view, if accepted, would stop much if not all of investigation in the public interest at the threshold of inquiry and, in the case of the. Administrator, is designed avowedly to do so. This would render substantially impossible his effective discharge of the duties of investigation and enforcement which Congress has placed upon him. And if his functions could be thus blocked, so might many others of equal importance.
IV.
What has been said disposes of petitioners’ principal contention upon the sufficiency of the showing. Other assignments, however, present the further questions whether any showing is required beyond the Administrator’s allegations of coverage and relevance of the required materials to that question; and, if so, of what character. Stated otherwise,- they are whether the court may order enforcement only upon a finding of “probable cause,” that is, probability in fact, of coverage, as was held by the Court of Appeals for the Tenth Circuit in No. 61, following the lead of the Eighth Circuit in Walling v. Benson, 137 F. 2d 501, or may do so upon the narrower basis accepted by the Third Circuit in No. 63.
The showing in No. 61 was clearly sufficient to constitute “probable cause” in this sense under conceptions of coverage prevailing at the time of the hearing,
In No. 63 the showing was less extensive, and it is doubtful that it would constitute “probable cause” of coverage as that term was used in the decisions from the Tenth and Eighth Circuits.
Congress has made no requirement in terms of any showing of “probable cause”;
The result therefore sustains the Administrator’s position that his investigative function, in searching out violations with a view to securing enforcement of the Act, is essentially the same as the grand jury’s,-or the court’s in issuing other pretrial orders for the discovery of evidence,
Petitioners stress that enforcement will subject them to inconvenience, expense and harassment. That argument is answered fully by what was said in Myers v. Bethlehem Corp.
Nor is there room for intimation that the Administrator has proceeded in these cases in any manner contrary to
No sufficient reason was set forth in the returns or the accompanying affidavits for not enforcing the subpoenas, a burden petitioners were required to assume in order to make “appropriate defence.”
Accordingly the judgments in both causes, No. 61 and No. 63, are
Affirmed.
The pertinent portions of these various statutory provisions arc set forth in notes 23 and 24.
Upon filing of the application, an order to show cause why enforcement should not be had was issued. Thereafter the matter was heard upon the pleadings, including the application and the respondent’s return, together with affidavits filed by the parties. See note 4; also note 52 infra. The district court made findings of fact and conclusions of law, see 7 Wage Hour Rep. at 656, which among other things determined “that the Company herein is subject to the Wage and Hour Act”; and issued its order for inspection accordingly. As to this finding and conclusion the court of appeals said: “When the matter was submitted to the trial court on the rule to show cause, it concluded coverage, but it did not have to go that far.” 147 F. 2d 658, 662.
In No. 63, as in No. 61, an order to show cause issued on filing of the application.. Upon return made, which included affidavits attached as exhibits, the court rendered its opinion and entered its order dismissing the proceedings, stating however that since the Administrator “has not had opportunity sufficiently to argue the question of coverage, that matter is left to such further proceedings as may be' appropriate. . . .” 49 F. Supp. 659, 661. The opinion, noting that to deny enforcement “would be to divide proceedings into two distinct stages — one concerning the presence of ‘Commerce,’ and the other to determine other elements of violation,” went on to say: “There would seem to be no compelling reason why such should not be the case, for if the act does not apply to a certain business or part of an industry, it would seem to follow that the provisions of the Act should not be applied thereto. . . .” 49 F. Supp. at 660.
See note 53. The allegations of coverage in both applications were made upon information and belief and were general rather than specific or evidentiary in character. Each application set forth that the respondent was engaged in- the business of publishing a newspaper or newspapers and by virtue of that activity was engaged in interstate commerce or in the production of goods for such commerce within the meaning of the Act.
In No. 61 the further allegations appeared that in the course of its business the company “receives and sends daily news, intelligence, and communications in interstate commerce, and transports, ships and delivers goods produced by it from points within" to points outside Oklahoma; and that the Administrator “having reasonable grounds to believe that the company” was violating specified sections of the Act, entered to make an investigation as provided in § 11- (a), was refused permission to inspect records, etc.
Apart from one affidavit filed by the Administrator in No. 61 setting forth the circumstances of the company’s failure to appear in response to the subpoena, no other facts, beyond the allegations of the application, were submitted by him in either case. The companies however filed affidavits in both proceedings, which supplied additional facts, as well as the affiants’ conclusions, concerning coverage. See text, Part IV, at notes 52, 53.
Specifically, General Tobacco & Grocery Co. v. Fleming, 125 F. 2d 596 (C. C. A. 6), modified in Walling v. La Belle Steamship Co., 148 F. 2d 198, following the decision in Endicott Johnson Corp. v. Perkins, 317 U. S. 501, as to which see note 49 infra and text. The decisions in other circuits which have passed op the matter are substantially in accord with the results in No. 61. See Martin Typewriter Co. v. Walling, 135 F. 2d 918 (C. C. A. 1); Walling v. Standard Dredging Corp., 132 F. 2d 322 (C. C. A. 2); Walling v. American Rolbal Corp., 135 F. 2d 1003 (C. C. A. 2); Cudahy Packing Co. v. Fleming, 119 F. 2d 209 (C. C. A. 5), rev’d on other grounds, 315 U. S. 357; Cudahy Packing Co. v. Fleming, 122 F. 2d 1005 (C. C. A. 8), rev’d on other grounds, 315 U. S. 785; Mississippi Road Supply Co. v. Walling, 136 F. 2d 391 (C. C. A. 5); Fleming v. Montgomery Ward & Co., 114 F. 2d 384 (C. C. A. 7); Walling v. Benson, 137 F. 2d 501 (C. C. A. 8).
See Part IV.
See also Sun Publishing Co. v. Walling, 140 F. 2d 445; Fleming v. Lowell Sun Co., 36 F. Supp. 320, rev’d on other grounds, 120 F. 2d 213, affirmed, 315 U. S. 784.
No question is presented whether Congress could enforce its mandate by excluding from commerce the circulation of a publisher refusing to conform. Cf. Sun Publishing Co. v. Walling, 140 F. 2d 445, 449.
Since the Fifth Amendment, unlike the Fourteenth, contains no “equal protection” clause, petitioners burden due process with this duty here.
The provision is as follows: “See. 13. (a) The provisions of sections 6 and 7 shall not apply with respect to . . . (8) any employee employed in connection with the publication of any weekly or semiweekly newspaper with a circulation of less than three thousand
The exemption shows conclusively that Congress intended the Act to apply to employees of publishers not within the terms of the exemption.
To support these views; petitioners give interesting statistics concerning the total number of papers in the country, the number published daily, daily and Sunday, weekly, semiweekly and triweekly, and the number in each group having more or less than 3,000 circulation.
See note 21. The Act became effective June 25, 1938.
As to the sufficiency of the showing, see Part IV.
Cf. notes 2, 3, 4. The facts in both cases show that petitioners,1 when served with the subpoenas, declined to honor them upon the-advice of counsel, and thereafter the Administrator applied to the court for enforcement in each case.
Cf. text infra at notes 42-47; see also note 40.
See the authorities cited in notes 31 and 32.
Hale v. Henkel, 201 U. S. 43; Wilson v. United States, 221 U. S. 361; Essgee Co. v. United States, 262 U. S. 151; United States v. Bausch & Lomb Optical Co., 321 U. S. 707, 726; cf. United States v. White, 322 U. S. 694.
Endicott Johnson Corp. v. Perkins, 317 U. S. 501; Myers v. Bethlehem Corp., 303 U. S. 41, discussed infra, Part III, at notes 49-51.
Cf. note 5 and text.
In such a situation, without an accompanying change in the statute’s language, an expression in committee reports on subsequent appropriations, coming largely from one house, hardly can be held to change or qualify the plain and unambiguous wording of the statute. Such a result would amount to retroactive amendment by committee report, a step in construction by reference to “prospective legislative history” not heretofore taken.
The controversy as to appropriations arose over the Administrator’s request for sufficient funds to allow a periodic routine inspection of every plant that might be covered by the Act. See Hearings before the Subcommittee of the Committee on Appropriations of the House of Representatives on the Department of Labor — Federal Security Agency Appropriation Bill for 1942, 77th Cong., 1st Sess., Pt. 1, 347-350. The Senate had acceded to this request. But the House Appropriations Committee thought the cost unjustifiable and therefore recommended that only enough funds be made available to permit the Administrator to make “spot inspections” of twenty-five per cent of the plants and also to permit him to inspect all plants against which complaints had actually been registered. H. Rep. No. 688, 77th Cong., 1st Sess., 13-14; see also 87 Cong. Rec. 4629, 5682-5683. After the conferees had been unable to come to an agreement and the House had instructed its conferees to insist on the smaller appropria
In the following year, 1942, the House Appropriations Committee noted with disapproval that “the spot-checking system approved by the Congress” had not been adopted and reiterated its desire that the recommended procedure be followed.. H. Rep. No. 2200, 77th Cong., 2d Sess., 8. See also Hearings before the Subcommittee of the Committee on Appropriations of the House of Representatives on the Department of Labor — Federal Security Agency Appropriation Bill for 1943, 77th Cong., 2d Sess., Pt. 1, 281-284; cf. Hearings before the Subcommittee of the Committee on Appropriations of the House of Representatives on the Department of Labor — Federal Security Agency Appropriation Bill for 1945, 78th Cong., 2d Sess., Pt. 1, 403-405.
This history falls far short of sustaining the view that Congress had no intent, either when the statute was enacted or later, that the Administrator should have the powers of investigation expressly and clearly conferred upon him.
“The sparse legislative history bearing on the question contains nothing to the contrary. The bills originally introduced did not incorporate §§ 9 and 10 of the Federal Trade Commission Act but contained substantially similar provisions. S. 2475, 75th Cong., 1st Sess., § 15, 81 Cong. Rec. 4961; H. R. 7200, 75th Cong., 1st Sess., § 15, 81 Cong. Rec. 4998. The House Committee on Labor reported of this section (then § 12) that it “contains the usual administrative provisions authorizing the Board to conduct investigations, subpena witnesses, and compel testimony.” H. Rep. No. 1452, 75th Cong., 1st Sess., 18, also page 10. The Senate Committee used the same language. S. Rep. No. 884, 75th Cong., 1st Sess., 8. The House bill having been recommitted to the Committee, 82 Cong. Rec. 1834r-1835, it drafted the subpoena section (then § 7) into essentially its present form. See H. Rep. No. 2182, 75th Cong., 2d Sess., 3, 11. The only substantial difference was that the subpoena power was given for the purpose of any “hearing” but not for the purpose of any “investigation.” However, § 15 (b) of the bills introduced in both houses, supra, granted the subpoena power “for the purpose of any investigation or any other proceeding under this Act. . . .” And com- - pare § 15 (a). The difference was remedied by .the Senate and House
Nothing in the reports or the discussion suggests that the power was not to be exercised, or that subpoenas issued in compliance with the terms of the statute were not to be enforced, exactly in accordance with the authority given.
Section 11 (a) is as follows: “The Administrator or his design nated representatives may investigate and gather data regarding the wages, hours, and other conditions and practices of employment in any industry subject to this Act, and may enter and inspect such places and such records (and make such transcriptions thereof), question such employees, and investigate such facts, conditions, practices, or matters as he may deem necessary or appropriate to determine whether any person has violated any provision of this Act, or which may aid in the enforcement of the provisions of this Act. Except as provided in section 12 and in subsection (b) of this section, the Administrator shall utilize the bureaus and divisions of the Department of Labor for all the investigations and inspections necessary under this section. Except as provided in section 12,. the Administrator shall bring all actions under section 17 to restrain violations of this Act.”
The section thus authorizes both general and specific investigations, one for gathering statistical information concerning entire industries, cf. Walling v. American Rolbal Corp., 135 F. 2d 1003, the other to discover specific violations. The pattern has become common since its introduction into federal law by the Interstate Commerce Commission legislation. See the summary given as to both federal and state instances in Handler, The Constitutionality of Investigations by the Federal Trade Commission (1928) 28 Col. L. Rev. 708, 905, at 905-909; see also 925-929.
Section 9 of the Fair Labor Standards Act reads: “For the purpose of any hearing or investigation provided for in this Act, the provisions of sections 9 and 10 (relating to the attendance of witnesses and the production of books, papers, and documents) of the Federal Trade Commission Act of September 16,1914, as amended (U. S. C., 1934 edition, title 15, secs. 49 and 50), are hereby made applicable to the jurisdiction, powers, and duties of the Administrator, the Chief of the Children’s Bureau, and the industry committees.”
Section 9 of the Federal Trade Commission Act, 38 Stat. 717, provides that, for the purposes of the authorized investigations, the Commission or its agents shall have access to and the right to copy “any documentary evidence of any corporation being investigated or proceeded against,” with the power to require by subpoena “the attendance and testimony of witnesses and the production of all such documentary evidence relating to any matter under investigation.”
The section then proceeds: "... in case of disobedience to a subpoena the commission may invoke the aid of any court of the United States in requiring the attendance and testimony of witnesses and the •production of documentary evidence.
“Any of the district courts of the United States within the jurisdiction of which such inquiry is carried on may, in case of contumacy or refusal to obey a subpoena issued to any corporation or other person, issue an order requiring such corporation or other person to appear before the commission, or to produce documentary evidence if so ordered, or to give evidence touching the matter in question; and any failure to obey such order of the court may be punished by such court as a contempt thereof.”
Section 9 also contains a provision for immunity of individuals from prosecution, penalty or forfeiture on account of testimony or evidence produced in response to the subpoena.
Section 10 imposes criminal penalties upon “any person who shall neglect or refuse to attend and testify, or to answer any lawful inquiry, or to produce documentary evidence, if in his power to do so, in obedience to the subpoena or lawful requirement of the commission ...” No question is presented in these cases concerning this provision.
See Part IV, at note 54; also note 24.
See note 27.
See Federal Trade Commission v. American Tobacco Co., 264 U. S. 298, 305-306, in which Mr. Justice Holmes speaking for the Court said: “Anyone who respects the spirit as well as the letter of the Fourth Amendment would be loath to believe that Congress intended to authorize one of its subordinate agencies to sweep all our traditions into the fire (Interstate Commerce Commission v. Brimson, 154 U. S. 447, 479), and to direct fishing expeditions into private papers on the possibility that they may disclose evidence of crime. We do not discuss the question whether it could do so if it tried, as nothing short of the most explicit language would induee us to attribute to Congress that intent.” See also note 40. Cf. Boyd v. United States, 116 U. S. 616; Hale v. Henkel, 201 U. S. 43; Harriman v. Interstate Commerce Commission, 211 U. S. 407.
“In other words, the subpoena is equivalent to a search and seizure and to be constitutional it must be a reasonable exercise of the power.” Lasson, Development of the Fourth Amendment to the United States Constitution, 137, citing Interstate Commerce Commission v. Brimson, 154 U. S. 447; Hale v. Henkel, 201 U. S. 43, 76. Cf. Boyd v. United States, 116 U. S. at 634-635 (as to which see also notes 33 and 36): “. . . We are further of opinion that a compulsory production of the private books and papers of the owner of goods sought to be forfeited ... is the equivalent of a search and seizure — and an unreasonable search and. seizure — within the meaning of the Fourth Amendment.”
See also'Handler, Constitutionality of Investigations of the Federal Trade Commission (1928) 28 Col. L. Rev. 708, 905, at 909 ff., and authorities cited, characterizing the identification of an order for production with an actual search or seizure as “the figurative interpretation.” . P. 917, n. 56.
See, in addition to the better known accounts of writs of assistance cited in Goldman v. United States, dissenting opinion, 316 U. S. at 139, n. 5, Lasson, Development of the Fourth Amendment to the United States Constitution (1937).
The case for protection of the public interest was stated as follows: “The opinion of the court reminds us of the dangers that wait upon the abuse of power by officialdom unchained.- The warning is so fraught with truth that it can never be untimely. But timely too is the reminder, as a host of impoverished investors will be ready to attest, that there are dangers in untruths and half truths when certificates masquerading as securities pass current in the market. There are dangers in spreading a belief that untruths' and half truths, designed to be passed on for the guidance of confiding buyers, are to be ranked as peccadillos, or even perhaps as part of the amenities of business. . . . A Commission which is without coercive powers, which cannot arrest or amerce or imprison though a crime has been uncovered, or even punish for contempt, but can only inquire and report, the propriety of every question in the course of the inquiry being subject to the supervision of the ordinary courts of justice, is likened with denunciatory fervor to the Star Chamber of the Stuarts. Historians may find hyperbole in the sanguinary simile.” Mr. Justice Cardozo, with whom joined the present Chief Justice and Mr. Justice Brandéis, dissenting in Jones v. Securities & Exchange Commission, 298 U. S. 1, 32-33. See also Handler, Constitutionality of Investigations of the Federal Trade Commission (1928) 28 Col. L. Rev: 708, 905, particularly at 933 if.
On the other hand, the case for protected privacy was put by Mr. Justice Brandéis, dissenting, in Olmstead v. United States, 277 U. S. 438, 478-479: “The makers of our Constitution undertook to secure
Wilson v. United States, 221 U. S. 361, 382; Hale v. Henkel, 201 U. S. 43, 74-75; The Fourth and Fifth Amendments and the Visitorial Power of Congress over State Corporations, Note (1930) 30 Col. L. Rev. 103.
Ibid.; Interstate Commerce Commission v. Brimson, 154 U. S. 447; Interstate Commerce Commission v. Baird, 194 U. S. 25; Baltimore & Ohio R. Co. v. Interstate Commerce Commission, 221 U. S. 612; Interstate Commerce Commission v. Goodrich Transit Co., 224 U. S. 194; United States v. Louisville & N. R. Co., 236 U. S. 318; Smith v. Interstate Commerce Commission, 245 U. S. 33; United States v. New York Central R. Co., 272 U. S. 457; cf., however, Harriman v. Interstate Commerce Commission, 211 U. S. 407; Federal
The power is not limited to inquiring concerning matters which Congress may regulate otherwise than by requiring the production of information, at any rate when it is made to appear that some phase of the activity is in commerce or affects it. See United States v. New York Central R. Co., 272 U. S. 457,464, and authorities cited; Federal Trade Commission v. Claire Furnace Co., 274 U. S. 160. Nor must the “jurisdictional” line be drawn in such cases before the information is called for. Cf. Myers v. Bethlehem Corp., 303 U. S. 41; Handler, op. cit. supra, at 918 if., and authorities cited.
In the leading case of Boyd v. United States, 116 U. S. 616, 630, Mr. Justice Bradley, speaking for the Court in relation to the compelled production of “a man’s own testimony or of his private papers [specifically a business invoice] to be used as evidence to convict him of crime or to forfeit his goods,” said in a much quoted statement: “In this regard the Fourth and Fifth Amendments run almost into each other.” The opinion, quoting at length from Lord Camden’s discussion in the historic case of Entick v. Carrington, 19 Howell’s State Trials 1029, relies strongly in this phase upon his conjunction' of the right to freedom from search and seizure “where the law forceth evidence out of the owner’s custody by process” and the privilege against self-incrimination. 116 U. S. at 629. Cf. also the statement of Mr. Justice Brandeis, quoted supra note 30.
Wilson v. United States, 221 U. S. 361; Hale v. Henkel, 201 U. S. 43; Interstate Commerce Commission v. Baird, 194 U. S. 25.
Silverthorne Lumber Co. v. United States, 251 U. S. 385; Hale v. Henkel, 201 U. S. 43; Interstate Commerce Commission v. Brimson, 154 U. S. 447, 448 ff. See also Consolidated Rendering Co. v. Vermont, 207 U. S. 541.
See note 33. The ruling was limited, in view of the facts, to criminal proceedings and proceedings for forfeiture of property. Only a single document was called for. The vitiating element lay in the incriminating character of the unusual provision for enforcement. The statute provided that failure to produce might be taken as a confession of whatever might be alleged in the motion for production.
See notes 31, 32, 40. Thus far Congress has not seen fit to leave to administrative officials authority to enforce subpoenas. The pattern adopted in §§ 9 and 10 of the Federal Trade Commission Act, of referring enforcement to the courts, has become accepted, whether by virtue of reflections of the opinion in Interstate Commerce Commission v. Brimson, 154 U. S. 447, or for other reasons. The extent to which the pattern has been adopted is summarized, partially at least, in Handler, op. cit. supra, at 925 ff.
See, for example, Essgee Co. v. United States, 262 U. S. 151.
E. g.,.in Silverthome Lumber Co. v. United States, 251 U. S. 385, government officers, after arresting corporate officials at their homes, “without a shadow of authority went to the office of their company and made a clean sweep of all the books, papers and documents found there,” taking them to the district attorney’s office, where they were photographed. After an order of court to return, the originals, but impounding the copies, subpoenas to produce the originals were enforced by an order, the refusal to obey which was held a contempt. The Court’s strong language in reversing this decision undoubtedly was called forth by the Government’s effort, not to say subterfuge, thus to avoid, the effects of its initial wrong. Cf. Weeks v. United States, 232 U. S. 383; Gouled v. United States, 255 U. S. 298.
Thus, the aggravating circumstance in Federal Trade Commission v. American Tobacco Co., 264 U. S. 298, cf. note 27, seems to have been the Commission’s claim of “an unlimited right of access to the respondents’ papers with reference to the possible existence of practices in violation of § 5.” 264 U. S. at 305. The Court said: “It is contrary to the first principles of justice to allow a search through all the respondents’ records, relevant or irrelevant, in the hope that something will turn up.” P. 306. (Emphasis added.) Cf. Silverthorne Lumber Co. v. United States, supra, note 39.
However in Wheeler v. United States, 226 U. S. 478, where no element of actual search and seizure was preserit, a subpoena was enforced which called for copies of all letters and telegrams, all cash books, ledgers, journals and other account books of the corporation covering a period of fifteen months; cf. Interstate Commerce Commission v. Brimson, 154 U. S. 447. And in Brown v. United States, 276 U. S. 134, the subpoena called for all letters, telegrams or copies thereof passing between a national trade association and its members, including their officers and agents, over a period of two and one-half years, with reference to eighteen different items. The Court, by Mr. Justice Sutherland, said: “The subpoena . . . specifies a reasonable period of time and, with reasonable particularity, the subjects to which the documents called for relate. The question is ruled, not by Hale
With reference to the breadth of the subpoena or order for production in the scope of what is called for, in addition to the authorities cited in this note and note 45, see Hammond Packing Co. v. Arkansas, 212 U. S. 322; United States v. Bausch & Lomb Optical Co., 321 U. S. 707; Handler, op. cit. supra, at 913 ff.
See note 36.
E. g., Hale v. Henkel, 201 U. S. 43; Wilson v. United States, 221 U. S. 361, 372.
Smith v. Interstate Commerce Commission, 245 U. S. 33; Baltimore & Ohio R. Co. v. Interstate Commerce Commission, 221 U. S. 612; cf. Interstate Commerce Commission v. Goodrich Transit Co., 224 U. S. 194; Harriman v. Interstate Commerce Commission, 211 U. S. 407, 419. And see Handler, op. cit. supra, 918 ff.
Cf. the authorities cited in notes 42 and 43.
Cf. Go-Bart Importing Co. v. United States, 282 U. S. 344, 357; Boyd v. United States, 116 U. S. at 630, and note 40 supra.
The subpoena in No. 61 called for production of:
“All of your books, papers and documents showing the hours worked by and wages paid to each of your employees between October 28, 1938, and the date hereof, including all payroll ledgers, time sheets, time cards and time clock records, and all your books, papers and documents showing the distribution of papers outside the State of Oklahoma, the dissemination of news outside the State of Oklahoma, the source and receipt of news from outside the State of Oklahoma, and the source and receipt of advertisements of nationally advertised goods.”
The specification in No. 63 was substantially identical except for the period of time covered by the demands
See the language of the section, note 24 supra. Of course violation could be found only in situations where coverage would exist. Authority to investigate the existence of violations accordingly included authority to investigate coverage. Cf. Endicott Johnson Corp. v. Perkins, 317 U. S. 501; Myers v. Bethlehem, Corp., 303 U. S. 41, discussed in the text herein at notes 49-51; and authorities cited in note 32 supra.
The description was made with all of the particularity the nature of the inquiry and the Administrator's situation would permit. See note 46. The subpoenas were limited to the books, papers and documents of the respective corporations, to which alo: >.e they were addressed. They required production at specified times and places in the cities of publication and stated the purpose of the investigation to be one affecting the respondent, pursúant to the provisions of §§ 9 and 11 (c), “regarding complaints of violations by said company of Sections 6, 7, 11 (c), 15 (a) (1), 15 (a) (2) and 15 (a) (5) of the Act.” Cf. the authorities cited in notes 32 and 45.
This Court, in granting certiorari in the Endicott Johnson case, did so, among other reasons, “because of probable conflict with” General Tobacco & Grocery Co. v. Fleming, 125 F. 2d 596, a case arising under the Fair Labor Standards Act. 317 U. S. at 502.
To the argument of “irreparable damage,” the Court said: “The contention is at war with the long settled rule of judicial administration that no one is entitled to judicial relief for a supposed or threatened injury until the prescribed administrative remedy has been exhausted. . . . Obviously, the rule . . . cannot be circumvented by asserting that the charge on which the complaint rests is groundless and that the mere holding of the prescribed administrative hearing would result in- irreparable damage. Lawsuits also often prove to have been groundless; but ho way has been discovered of relieving a defendant from the necessity of a trial to establish the fact.” 303 U. S. at 50.
It is true that in the Myers situation the Board’s determination is quasi-judicial, is given finality as to the facts if there is evidence to sustain its findings, National Labor Relations Act, § 10 (e) (49 Stat. 454), and is expressly made exclusive, ibid,., § 10 (a), whereas in the situations now presented the Administrator’s investigation is only preliminary to instituting proceedings in court and thus has none of the finality or quasi-judicial character given to the Board’s determi
The mere fact that the first stage of formal adjudication is administrative in the one case and judicial in the other would seem to make no difference with the power of Congress to authorize either the preliminary investigation or the use of the subpoena power in aid of it.
The evidence that the' company or its employees were engaged in commerce, etc., was supplied largely by it in the return to the rule to show cause and the supporting affidavits, consisting of admissions
See notes 3, 4. The Administrator’s allegations, - more general than in No. 61, merely set forth that the company was a newspaper publisher, that the Administrator had reason to believe it was violating the Act, and that it was “engaged in commerce and in the production of goods for commerce.” This conclusion was denied. The admissions of the return, including the affidavits, supplied only the pertinent facts in relation to coverage that the respondent, News Printing Co., was engaged in the business of publishing and distributing the “Paterson Evening News,” a daily paper, that less than one per cent of its circulation of more than 23,000 copies, or a daily average of 278 copies, was distributed outside New Jersey, where the paper -was published, and that the business was conducted in the same manner as other “local” papers according to the methods shown by the affidavits. These disclosed nothing material concerning interstate phases of such businesses generally, except as might be inferred from statements that they publish national and international as well as local news, and must do so as quickly as possible after the events occur.
Section 9 of the Federal Trade Commission Act authorizes the Administrator to invoke the aid of the court “in case of disobedience to a subpoena” and the court is authorized to give assistance “in case of contumacy or refusal to obey a subpoena issued to any corporation or other person . . .” Cf. note 24.
The bill of discovery in equity would seem to furnish an instance. Cf. Sinclair Refining Co. v. Jenkins Petroleum Co., 289 U. S. 689, 696-697. See also the provisions for pretrial examination and the taking of depositions, Federal Rules of Civil Procedure, Rules 26 (b), 30 (d), 45; Union Central Life Ins. Co. v. Burger, 27 F. Supp. 556; Bloomer v. Sirian Lamp Co., 4 F. R. D. 167, 8 F. R. S. 26b.31, Case 3; Lewis v. United Air Lines Transport Corp., 27 F. Supp. 946, 947. The power of Congress itself to call for information presents a related illustration. McGrain v. Daugherty, 273 U. S. 135, 156-158.
In General Tobacco & Grocery Co. v. Fleming, 125 F. 2d 596, 599, the court said: “In the exercise of fbfi-judicial power to review questions of law, as conferred by an Act*®? Congress, the seal of a United States Court should not become a mere rubber stamp for the approval of arbitrary action by an administrative agency.” In this case, No. 63, the district court said: “. . . the functions of the Courts remain, and those functions are not merely to act as an adjunct of administrative bodies. . . .” 49 F. Supp. 659, 661.
The issues of authority to conduct the investigation, relevancy , of the materials sought, and breadth of the demand are neither minor nor ministerial matters. Nor would there be any failure to satisfy fully the discretionary power implied in the statute’s use of the word “may,-” rather than “shall,” see note 24, in authorizing the court to enforce the subpoenas. It would be going far to say that Congress could not proceed upon this basis, but could go forward only by requiring a showing of probable cause of coverage in the sense of probability in fact of coverage. Cf. note 44 and text. Coverage is but one element in violation and if probable cause, in that sense, must be shown concerning it, it is difficult to understand why probable cause must not be shown also concerning exemptions, see Martin Typewriter Co. v. Walling, 135 F. 2d 918; Walling v. La Belle S. S. Co., 148 F. 2d 198, or any other essential element in violation.
See note 50 supra.
See note 30.