SPRINGER et al. v. GOVERNMENT OF THE PHILIPPINE ISLANDS. AGONCILLO et al. v. SAME.
Nos. 564, 573.
Argued: April 10, 1928.
Decided: May 14, 1928.
opinion, SUTHERLAND [HTML] Syl l abus from pages 189-191 i ntenti onal l y omi tted
Messrs. John W. Davi s, of New York Ci ty, and Jose Abad Santos and James Ross, both of Mani l a, P. I., for peti ti oners.
Argument of Counsel from pages 191-195 i ntenti onal l y omi tted
Mr. Wm. D. Mi tchel l , Sol Gen., of Washi ngton, D. C., Frederi ck C. Fi sher, Speci al Counsel , of Mani l a, P. I., Wi l l i am Cattron Ri gby, Li eutenant Col onel , Judge Advocate, of Washi ngton, D. C., Hugh C. Smi th, Li eutenant Col onel , Judge Advocate, and Robert P. Reeder, Speci al Assi stant to the Atty. Gen., for Government of Phi l i ppi ne Isl ands.
Argument of Counsel from pages 195-197 i ntenti onal l y omi tted
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Mr. Justi ce SUTHERLAND del i vered the opi ni on of the Court.
These cases, presenti ng substanti al l y the same questi on, were argued and wi l l be consi dered and di sposed of together. In each case an acti on i n the nature of quo warranto was brought i n the court bel ow chal l engi ng the ri ght to hol d offi ce of di rectors of certai n corporati ons organi zed under the l egi sl ati ve authori ty of the Phi l i ppi ne Isl ands; No. 564 i nvol vi ng di rectors of the Nati onal Coal Company, and No. 573 i nvol vi ng di rectors of the Phi l i ppi ne Nati onal Bank.
The Nati onal Coal Company was created by Act 2705, approved March 10, 1917, subsequentl y amended by Act 2822, approved March 5, 1919. The Governor General , under the provi si ons of the amended act, subscri bed on behal f of the Phi l i ppine Isl ands for substanti ally al l of the capi tal stock. The act provi des:
'The voti ng power of al l such stock owned by the government of the Phi l i ppi ne Isl ands shal l be vested excl usi vel y i n a commi ttee, consi sti ng of the Governor General , the Presi dent of the Senate and the Speaker of the House of Representati ves.'
The Nati onal Bank was created by Act 2612, approved February 4, 1916, subsequentl y amended by Act 2747, approved February 20, 1918, and Act 2938, approved January 30, 1921. The authori zed capi tal of the bank, as fi nal l y fi xed, was 10,000,000 pesos, consi sti ng of 100,000 shares, of whi ch, i n pursuance of the l egi sl ati ve provi si ons, the Phi l i ppi ne Government acqui red and owns 97,332 shares; the reami nder bei ng hel d by pri vate persons. By the ori gi nal act the voti ng power of the government-owned stock was vested excl usi vel y i n the Governor General , but by the amended acts now i n force that power was 'vested excl usi vel y i n a board, the short ti tl e of whi ch shal l be 'board of control ,' composed of the Governor General , the Presi dent of the Senate, and the Speaker of the House of Representati ves.' The Governor General was al so di vested of the power of appoi ntment of the presi dent and vi ce presi dent of the bank, ori gi nal ly vested i n hi m, and thei r el ecti on was authori zed to be made by the di rectors from among thei r own number. Provi si on was al so made for a general manager, to be appoi nted or removed by the board of di rectors wi th the advi ce and consent of the board of control . The manager was to be chi ef executi ve of the bank, wi th an annual sal ary to be fi xed by the board of di rectors wi th the approval of the board of control . Further duti es were conferred upon the board of control i n connecti on wi th the management of the bank whi ch i t does not seem necessary to set forth.
It i s worthy of note that thi s voti ng power has been s i mi l arl y devol ved by the Legi sl ature upon at l east four other corporati ons: The Nati onal Petrol eum Company, by Act 2814; the Nati onal Devel opment Company, by Act 2849; the Nati onal Cement Company, by Act 2855; and the Nati onal Iron Company, by Act 2862-and the suggesti on of the Sol i citor General that thi s i ndi cates a systemati c pl an on the part of the Legi sl ature to take over, through i ts presi di ng offi cers, the di rect control general l y of nati onal l y organi zed or control l ed stock corporati ons woul d seem to be warranted.
In pursuance of the fi rst-quoted provi si on, peti ti oners i n No. 564 were el ected di rectors of the Nati onal Coal Company by a vote of the government-owned shares cast by the Presi dnet of the Senate and the Speaker of the House; and, i n purusance of the second quoted provi si on, peti ti oners i n No. 573 were el ected di rectors of the Nati onal Bank i n the same way. The Governor General , chal l engi ng the val i di ty of the l egi sl ati on, di d not parti ci pate i n ei ther el ecti on. Whi l e there are some di fferences between the two acti ons i n respect of the facts, they are di fferences of detai l whi ch do not affect the substanti al questi on to be determi ned.
On behal f of the Phi l i ppi ne government, respondent i n both cases, i t i s contended that the el ecti on of di rectors and managi ng agents by a vote of the government-owned stock was an executi ve functi on i ntrusted by the Organi c Act of the Phi l i ppi ne Isl ands to the Governor General , and that the acts of the Legi sl ature di vesti ng hi m of that power and vesti ng i t, i n the one case, i n a 'board,' and, i n the other, i n a 'commi ttee,' the majori ty of whi ch i n each i nstance consi sted of offi cers and members of the Legi sl ature, were i nval i d as bei ng i n confl i ct wi th the Organi c Act. The court bel ow sustai ned the contenti on of the government and entered judgments of ouster agai nst the peti ti oners i n each case.
The congressi onal l egi slati on referred to as the Organi c Act i s the enactment of August 29, 1916, c. 416, 39 Stat. 545 (48 USCA 1001 et seq.), whi ch consti tutes the fundamental l aw of the Phi l i ppi ne Isl ands, and bears a rel ati on to thei r governmental affai rs not unl i ke that borne by a state Consti tuti on to the state. The act contai ns a Bi l l of Ri ghts, many of the provi si ons of whi ch are taken from the Federal Consti tuti on. It l ays down fundamental rul es i n respect of taxati on, shi ppi ng, customs duti es, etc. Secti on 8 of the act (48 USCA 1041) provi des:
'That general l egi sl ati ve power, except as otherwi se herei n provi ded, i s hereby granted to the Phi l i ppi ne Legi sl ature, authori zed by thi s act.'
And by secti on 12 (48 USCA 1043) thi s l egi sl ati ve power i s vested i n a Legi sl ature, to consi st of two houses, one the Senate and the other the House of Representati ves. Provi si on i s made (secti ons 13, 14 and 17 (48 USCA 1044, 1045, 1048)) for membershi ps, terms, and qual i fi cati ons of the members of each house. By secti on 21 (48 USCA 1111) i t i s provi ded 'that the supreme executi ve power shal l be vested i n an executi ve offi cer, whose offi ci al ti tl e shal l be 'the Governor General of the Phi l i ppi ne Isl ands." He i s gi ven 'general supervi si on and control of al l of the departments and bureaus of the government i n the Phi l i ppi ne Isl ands as far as i s not i nconsi stent wi th the provi si ons of thi s act.' He i s made 'responsi bl e for the fai thful executi on of the l aws of the Phi l i ppi ne Isl ands and of the Uni ted States operati ve wi thi n the Phi l i ppi ne Isl ands.' Other powers of an i mportant and comprehensi ve character al so are conferred upon hi m. By secti on 22 (48 USCA 1114) the executi ve departments of the Phi l i ppi ne government, as then authori zed by l aw, are conti nued unti l otherwi se provi ded by the Legi sl ature. The Legi sl ature i s authori zed by appropri ate l egi sl ati on to 'i ncrease the number or abol i sh any of the executi ve departments, or make such changes i n the names and duti es thereof as i t may see fi t,' and 'provi de for the appoi ntment and removal of the heads of the executi ve departments by the Governor General .' Then fol l ows the provi so:
'That al l executi ve functi ons of the government must be di rectl y under the Governor General or wi thi n one of the executi ve departments under the supervi si on and control of the Governor General .'
Secti on 26 (48 USCA 1071-1074, 1078) recogni zes the exi sti ng Supreme Court and courts of fi rst i nstance of the Isl ands, and conti nues thei r juri sdi cti on as heretofore provi ded, wi th such addi ti onal juri sdi cti on as shoul d thereafter be prescri bed by l aw.
Thus the Organi c Act, fol l owi ng the rul e establ i shed by the Ameri can Consti tuti ons, both state and federal , di vi des the government i nto three separate departments-the l egi sl ati ve, executi ve, and judi ci al . Some of our state Consti tuti ons expressl y provi de i n one form or another that the l egi sl ati ve, executi ve, and judi ci al powers of the government shal l be forever separate and di sti nct from each other. Other Consti tuti ons, i ncl udi ng that of the Uni ted States, do not contai n such an express provi si on. But i t i s i mpl i cit i n al l , as a concl usi on l ogi cal l y fol l owi ng from the separati on of the several departments. See Ki l bourn v. Thompson, 103 U. S. 168, 190, 191, 26 L. Ed. 377. And thi s separati on and the consequent excl usi ve character of the powers conferred upon each of the three departments i s basi c and vi tal -not merel y a matter of governmental mechani sm. That the pri nci pl e i s i mpl i ci t i n the Phi l i ppine Organi c Act does not admi t of doubt. See Abueva v. Wood, 45 Phi l . Rep. 612, 622, 628, et seq.
It may be stated then, as a general rul e i nherent i n the Ameri can consti tuti onal system, that, unl ess otherwi se expressl y provi ded or i nci dental to the powers conferred, the Legi sl ature cannot exerci se ei ther executi ve or judi ci al power; the executi ve cannot exerci se ei ther l egi sl ati ve or judi ci al power; the judi ci ary cannot exerci se ei ther executi ve or l egi sl ati ve power. The exi stence i n the vari ous Consti tuti ons of occasi onal provi si ons expressl y gi vi ng to one of the departments powers whi ch by thei r nature otherwi se woul d fal l wi thi n the general scope of the authori ty of another department emphasi zes, rather than casts doubt upon, the general l y i nvi ol ate character of thi s basi c rul e.
Legi sl ati ve power, as di sti ngui shed from executi ve power, i s the authori ty to make l aws, but not to enforce them or appoi nt the agents charged wi th the duty of such enforcement. The l atter are executi ve functi ons. It i s unnecessary to enl arge further upon the general subject, si nce i t has so recentl y recei ved the ful l consi derati on of thi s court. Myers v. Uni ted States, 272 U. S. 52, 47 S. Ct. 21, 71 L. Ed. 160.
Not havi ng the power of appoi ntment, unl ess expressl y granted or i nci dental to i ts powers, the Legi sl ature cannot i ngraft executi ve duti es upon a l egi sl ati ve offi ce, si nce that woul d be to usurp the power of appoi ntment by i ndi recti on, though the case mi ght be di fferent i f the addi ti onal duti es were devol ved upon an appoi ntee of the executi ve. Shoemaker v. Uni ted States, 147 U. S. 282, 300, 301, 13 S. Ct. 361, 37 L. Ed. 170. Here the members of the Legi sl ature who consti tute a majori ty of the 'board' and 'commi ttee,' respecti vel y, are not charged wi th the performance of any l egi sl ati ve functi ons or wi th the doi ng of anythi ng whi ch i s i n ai d of the performance of any such functi ons by the Legi sl ature. Putti ng asi de for the moment the questi on whether the duti es devol ved upon these members are vested by the Organi c Act i n the Governor General , i t i s cl ear that they are not l egi sl ati ve i n character, and sti l l more cl ear that they are not judi ci al . The fact that they do not fal l wi thi n the authori ty of ei ther of these two consti tutes l ogi cal ground for concl udi ng that they do fal l wi thi n that of the remai ni ng one of the three among whi ch the powers of government are di vi ded. Compare Myers v. Uni ted States, supra, pages 117, 118 (47 S. Ct. 25).
Assumi ng, for present purposes, that the duty of managi ng thi s property, namel y, the government-owned shares of stock i n these corporati ons, i s not soverei gn but propri etary i n i ts nature, the concl usi on must be the same. The property i s owned by the government, and the government i n deal i ng wi th i t, whether i n i ts quasi soverei gn or i ts propri etary capaci ty, neverthel ess acts i n i ts governmental capaci ty. There i s nothi ng i n the Organi c Act, or i n the nature of the l egi sl ati ve power conferred by i t, to suggest that the Legi sl ature i n acti ng i n respect of the propri etary ri ghts of the government may di sregard the l i mi tati on that i t must exerci se l egi sl ati ve and not executi ve functi ons. It must deal wi th the property of the government by maki ng rul es, and not by executi ng them. The appoi ntment of managers (i n thi s i nstance corporate di rectors) of property or a busi ness, i s essenti al l y an executi ve act whi ch the Legi sl ature i s wi thout capaci ty to perform di rectl y or through any of i ts members.
Whether the members of the 'board' or the 'commi ttee' are publ i c offi cers i n a stri ct sense, we do not fi nd i t necessary to determi ne. They are publ i c agents at l east, charged wi th the exerci se of executi ve functi ons and, therefore, beyond the appoi nti ng power of the Legi sl ature. Stockman v. Leddy, 55 Col o. 24, 129 P. 220, Ann. Cas. 1916E, 1052, i nvol ved a case very much l i ke that now under consi derati on. The state Legi sl ature had created a commi ttee of i ts own members to i nvesti gate the ri ghts of the state i n the fl owi ng waters therei n. The commi ttee was authori zed to determi ne what steps were necessary to be taken to protect the ri ghts of the state, to empl oy counsel , etc. There was no cl ai m that the i nvesti gati on was for the purpose of ascertai ni ng facts to ai d i n future l egi sl ation or to assi st the Legi sl ature i n i ts l egi sl ative capaci ty, but i t was for the purpose of enabl i ng the commi ttee i tsel f to reach a concl usi on as to what shoul d be proper to do i n order to protect the ri ghts of the state. The court, i n hol di ng the act unconsti tuti onal , sai d (page 31 (129 P. 223)):
'In other words, the General Assembl y not onl y passed an act- that i s, made a l aw-but i t made a joi nt commi ttee of the Senate and the House as i ts executi ve agent to carry out that l aw. Thi s a cl ear and conspi cuous i nstance of an attempt by the General Assembl y to confer executi ve power upon a col l ecti on of i ts own members.'
And the court hel d that thi s was i nval i d under the provi si ons of the state Consti tuti on respecti ng the tri parti te di vi si on of governmental powers. See, al so, Cl ark v. Stanl ey, 66 N. C. 59, 8 Am. Rep. 488; State ex rel . Howerton v. Tate, 68 N. C. 546.
Peti ti oners seek to draw a paral l el between the power of Congress to create corporati ons as appropri ate means of executi ng governmental powers and the acts of the Phi l i ppine Legi sl ature here under consi derati on. To what extent the powers of the two bodi es i n thi s respect may be assi mi l ated we need not stop not to determi ne, si nce the power of the Legi sl ature to create the two corporati ons here i nvol ved i s not doubted. But i t i s argued further that Congress, i n creati ng corporati ons for governmental purposes, has someti mes devol ved the voti ng power i n such corporati ons upon persons other than executi ve offi cers. In the case of the Smi thsoni an Insti tuti on, ci ted as an exampl e, Congress provi ded for a governi ng Board of Regents composed i n part of members of the Senate and of the House. There are tow or three other i nstances i n respect of nonstock organi zati ons of l i ke character. On the other hand, as poi nted out by the Sol i ci tor General , i n the case of governmental l y organi zed or control l ed stock corporati ons, Congress has uni forml y recogni zed the executi ve authori ty i n thei r management, general l y provi di ng i n express terms that the shares shal l be voted by an executi ve offi cer, and i n no i nstance attempti ng to grant such power to one or more of i ts members. Many i nstances of thi s ki nd are ci ted by the Sol i ci tor General , but i t i s not necessary to repeat hi s enumerati on. It i s enough to say that, when we consi der the l i mi ted number of acts of Congress whi ch fal l wi thi n the fi rst cl ass spoken of above, as wel l as the pecul i ar character of the i nsti tuti ons deal t wi th, and the contrary atti tude of Congress toward corporati ons of a di fferent character, such acts cannot be regarded as l endi ng support to a constructi on of the Consti tuti on whi ch woul d justi fy congressi onal l egi slati on l ike that here i nvol ved. As thi s court sai d i n Myers v. Uni ted States, supra, pages 170-171 (47 S. Ct. 43):
'In the use of congressi onal l egi slati on to support or change a parti cul ar constructi on of the Consti tuti on by acqui escence, i ts wei ght for the purpose must depend not onl y upon the nature of the questi on, but al so upon the atti tude of the executi ve and judi ci al branches of the government, as wel l as upon the number of i nstances i n the executi on of the l aw i n whi ch opportuni ty for objecti on i n the courts or el sewhere i s afforded. When i nstances whi ch actual ly i nvol ve the questi on are rare, or have not i n fact occurred, the wei ght of the mere presence of acts on the statute book for a consi derabl e ti me, as showi ng general acqui escence i n the l egi sl ati ve asserti on of a questi oned power, i s mi ni mi zed.'
And we are further of the opi ni on that the powers asserted by the Phi l i ppi ne Legi sl ature are vested by the Organi c Act i n the Governor General . The i ntent of Congress to that effect i s di scl osed by the provi si ons of that act al ready set forth. Stated conci sel y, these provi si ons are: That the supreme executi ve power i s vested i n the Governor General , who i s gi ven general supervi si on and control over al l the departments and bureaus of the Phi l i ppi ne government; upon hi m i s pl aced the responsi bi l i ty for the fai thful executi on of the l aws of the Phi l i ppi ne Isl ands; and, by the general provi so, al ready quoted, al l executi ve functi ons must be di rectl y under the Governor General or wi thi n one of the executi ve departments under hi s supervi si on and control . These are grants comprehensi ve enough to i ncl ude the powers attempted to be exerci sed by the Legi sl ature by the provi si ons of l aw now under revi ew. Myers v. Uni ted States, supra.
It i s true that secti on 21 contai ns a speci fi c provi si on that the Governor General shal l appoi nt such offi cers as may now be appoi nted by the Governor General , or such as he i s authori zed by thi s act to appoi nt, or whom he may hereafter be authroi zed by l aw to appoi nt. And i t i s sai d that the effect of thi s i s to confi ne the Governor General 's powers of appoi ntment wi thi n the l i mi ts of thi s enumerati on. The general rul e that the expressi on of one thi ng i s the excl usi on of others i s subject to excepti ons. Li ke other canons of statutory constructi on, i t i s onl y an ai d i n the ascertai nment of the meani ng of the l aw, and must yi el d whenever a contrary i ntenti on on the part of the l awmaker i s apparent. Where a statute contai ns a grant of power enumerati ng certai n thi ngs whi ch may be done and al so a general grant of power whi ch, standi ng al one, woul d i ncl ude these thi ngs and more, the general grant may be gi ven ful l effect i f the context shows that the enumerati on was not i ntended to be excl usi ve. See, for exampl e, Ford v. Uni ted States, 273 U. S. 593, 611, 47 S. Ct. 531, 71 L. Ed. 793, Portl and v. N. E. T. & T. Co., 103 Me. 240, 249, 68 A. 1040; Grubbe v. Grubbe, 26 Or. 363, 370, 38 P. 182; Swi ck v. Col eman, 218 Il l . 33, 40, 75 N. E. 807; Lexi ngton ex rel . v. Commerci al Bank, 130 Mo. App. 687, 692, 108 S. W. 1095; McFarl and v. M., K. & T. Ry. Co., 94 Mo. App. 336, 342, 68 S. W. 105.
Appl yi ng these pri nci pl es, we are unabl e to accept the contenti on that the enumerati on here i n questi on i s excl usi ve i n the face of the general provi si ons al ready quoted, and parti cul arl y of that one whi ch decl ares that al l executi ve functi ons are vested di rectl y i n the Governor General or under hi s supervi si on and control . It i s true that thi s provi sion i s i n the form of a provi so, and i t i s argued that i t i s therefore nothi ng more than a defi ni ti on by negati on of the power gi ven to the Legi sl ature i n the same secti on. But an anal ysis of the secti on, whi ch i s reproduced so far as perti nent i n the margi n, 1 shows, though not whol l y beyond doubt, that the power gi ven to the Legi sl ature i s i tsel f a provi so. In other words, both the grant of power to the Legi sl ature and the grant of power to the Governor General are i n form provi sos to the general provi si ons of secti on 22 whi ch precede them. It i s di ffi cul t to assi gn to ei ther provi so the general purpose of that form of l egi sl ati on, whi ch i s merel y to qual i fy the operati on of the general l anguage whi ch precedes i t. We thi nk rather that both provi sos are to be construed as i ndependent and substanti ve provi si ons. As thi s court has more than once poi nted out, i t i s not an uncommon practi ce i n l egi sl ati ve proceedi ngs to i ncl ude i ndependent pi eces of l egi sl ati on under the head of provi sos. See Georgi a Banki ng Co. v. Smi th, 128 U. S. 174, 181, 9 S. Ct. 47, 32 L. Ed. 377; Whi te v. Uni ted States, 191 U. S. 545, 551, 24 S. Ct. 171, 48 L. Ed. 295; Cox v. Hart, 260 U. S. 427, 435, 43 S. Ct. 154, 67 L. Ed. 332.
Fi nal l y, i t i s urged that, si nce no acti on has been taken by Congress under secti on 19 of the Organi c Act (48 USCA 1052-1054), requi ri ng al l l aws enacted by the Phi l i ppi ne Legi sl ature to be reported to Congress, whi ch reserves the power to annul them, the l egi sl ati on now under revi ew has recei ved the i mpl i ed sancti on of Congress, and shoul d not be di sturbed. Cl i nton v. Engl ebrecht, 13 Wal l . 434, 446, 20 L. Ed. 659, i s ci ted i n support of thi s contenti on. In that case jurors were summoned i nto the l egi sl ati ve courts of the terri tory of Utah under the provi si ons of acts of Congress appl i cabl e onl y to the courts of the Uni ted States. Thi s court hel d that the jurors were wrongl y summoned, and a chal l enge to the array shoul d have been sustai ned. The court, however, proceeded al so to exami ne the jury l aw enacted by the terri tori al Legi sl ature, and decl ared i t to be val i d. In the course of the opi ni on i t was sai d that, si nce the si mpl e di sapproval by Congress at any ti me woul d have annul l ed that l aw, i t was not unreasonabl e to i nfer that i t was approved by that body. In the l ater case of Cl ayton v. Utah Terri tory, 132 U. S. 632, 10 S. Ct. 190, 33 L. Ed. 455, an act of the same terri tory, provi di ng for the appoi ntment of certai n offi cers was hel d to be voi d as i n contraventi on of a provi si on of the terri tori al Organi c Act vesti ng i n the Governor the power to appoi nt such offi cers. Deal i ng wi th the same poi nt here made, thi s court sai d (page 642 (10 S. Ct. 194)):
'It i s true that i n a case of doubtful constructi on the l ong acqui escence of Congress and the general government may be resotred to as some evi dence of the proper constructi on, or of the val i di ty, of a l aw. Thi s pri nci pl e i s more appl i cabl e to questi ons rel ati ng to the constructi on of a statute than to matters whi ch go to the power of the Legi sl ature to enact i t. At al l events, i t can hardl y be admi tted as a general proposi ti on that under the power of Congress reserved i n the organi c acts of the terri tori es to annul the acts of thei r Legi sl atures the absence of any acti on by Congress i s to be construed to be a recogni ti on of the power of the Legi sl ature to pass l aws i n confl i ct wi th the act of Congress under whi ch they were created.'
The i nference of an approval by Congress from i ts mere fai l ure to act at best rests upon a weak foundati on. And we thi nk, where the i nference i s sought to be appl i ed, as here, to a case where the l egi sl ation i s clearly voi d as i n contraventi on of the Organi c Act, i t cannot reasonabl y be i ndul ged. To justi fy the concl usi on that Congress has consented to the vi ol ati on of one of i ts own acts of such fundamental character wi l l requi re somethi ng more than such i nacti on upon i ts part as real l y amounts to nothi ng more than a fai l ure affi rmati vely to decl are such vi ol ati on by a formal act.
Whether the Phi l i ppi ne Legi sl ature, i n vi ew of the al ternati ve form of the provi si on vesti ng al l executi ve functi ons di rectl y under the Governor General or wi thi n one of the executi ve departments under hi s supervi si on and control , mi ght devol ve the voti ng power upon the head of an executi ve department or an appoi ntee of such head, we do not now deci de. The Legi sl ature has not undertaken to do so; and, i n the absence of such an attempt, i t necessari l y resul ts that the power must be exerci sed di rectl y by the Governor General or by hi s appoi ntee, si nce he i s the onl y executi ve now defi ni tel y authori zed by l aw to act.
The judgments i n both cases are affi rmed.
Mr. Justi ce HOLMES (di ssenti ng).
The great ordi nances of the Consti tuti on do not establ i sh and di vi de fi el ds of bl ack and whi te. Even the more speci fi c of them are found to termi nate i n a penumbra shadi ng gradually from one extreme to the other. Property must not be taken wi thout compensati on, but wi th the hel p of a phrase (the pol i ce power), some property may be taken or destroyed for publ i c use wi thout payi ng for i t, i f you do not take too much. When we come to the fundamental di sti ncti ons i t i s sti ll more obvi ous that they must be recei ved wi th a certai n l ati tude or our government coul d not go on.
To make a rul d of conduct appl i cable to an i ndi vi dual who but for such acti on woul d be free from i t i s to l egi sl ate-yet i t i s what the judges do whenever they determi ne whi ch of two competi ng pri nci ples of pol i cy shall prevai l. At an earl y date i t was hel d that Congress coul d del egate to the courts the power to regul ate process, whi ch certai nl y i s l awmaki ng so far as i t goes. Wayman v. Southard, 10 Wheat. 1, 42, 6 L. Ed. 253. Bank of the Uni ted States v. Hal stead, 10 Wheat. 51, 6 L. Ed. 264. Wi th regard to the Executi ve, Congress has del egated to i t or to some branch of i t the power to i mpose penal ti es, Oceani c Steam Navi gati on Co. v. Stranahan, 214 U. S. 320, 29 S. Ct. 671, 53 L. Ed. 1013; to make concl usi ve determi nati on of duti abl e val ues, Passavant v. Uni ted States, 148 U. S. 214, 13 S. Ct. 572, 37 L. Ed. 426; to establ i sh standards for i mports, Buttfi el d v. Stranahan, 192 U. S. 470, 24 S. Ct. 349, 48 L. Ed. 525; to make regul ati ons as to forest reserves, Uni ted States v. Gri maud, 220 U. S. 506, 31 S. Ct. 480, 55 L. Ed. 563; and other powers not needi ng to be stated i n further detai l . Houston v. St. Loui s Independent Packi ng Co., 249 U. S. 479, 39 S. Ct. 332, 63 L. Ed. 717; Uni on Bri dge Co. v. Uni ted States, 204 U. S. 364, 27 S. Ct. 367, 51 L. Ed. 523; Ex parte Kol l ock, 165 U. S. 526, 17 S. Ct. 444, 41 L. Ed. 813. Congress has authroi zed the Presi dent to suspend the operati on of a stature, even one suspendi ng commerci al i ntercourse wi th another country, Fi el d v. Cl ark, 143 U. S. 649, 12 S. Ct. 495, 36 L. Ed. 294, and very recentl y i t has been deci ded that the Presi dent mi ght be gi ven power to change the tari ff, J. W. Hampton, Jr., & Co. v. Uni ted States (Apri l 9, 1928) 276 U. S. 394, 48 S. Ct. 348, 72 L. Ed. 624. It i s sai d that the powers of Congress cannot be del egated, yet Congress has establ i shed the Interstate Commerce Commi ssi on, whi ch does l egi sl ati ve, judi ci al and executi ve acts, onl y softened by a quasi , makes regul ati ons, Inter-Mountai n Rate Cases, 234 U. S. 476, 486, 34 S. Ct. 986, 58 L. Ed. 1408, i ssues reparati on orders and performs executi ve functi ons i n connecti on wi th Safety Appl i ance Acts, Boi l er Inspecti on Acts, etc. Congress al so has made effecti ve excursi ons i n the other di recti on. It has wi thdrawn juri sdi cti on of a case after i t has been argued. Ex parte McCardl e, 7 Wal l . 506, 19 L. Ed. 264. It has granted an amnesty, notwi thstandi ng the grant to the Presi dent of the power to pardon. Brown v. Wal ker, 161 U. S. 591, 601, 16 S. Ct. 644, 40 L. Ed. 819. A terri tori al Legi sl ature has granted a di vorce. Maynard v. Hi l l , 125 U. S. 190, 8 S. Ct. 723, 31 L. Ed. 654. Congress has decl ared l awful an obstructi on to navi gati on that thi s court has decl ared unl awful . Pennsyl vania v. Wheel i ng & Bel mont Bri dge Co., 18 How. 421, 15 L. Ed. 435. Paral l el to the case before us Congress l ong ago establ i shed the Smi thsoni an Insti tuti on to questi on whi ch woul d be to l ay hands on the Ark of the Covenant; not to speak of l ater si mi l ar exerci ses of power hi therto unquesti oned, so far as I know.
It does not seem to need argument to show that however we may di sgui se i t by vei l i ng words we do not and cannot carry out the di sti ncti on between l egi sl ati ve and executi ve acti on wi th mathemati cal preci si on and di vi de the branches i nto wateri ght compartments, were i t ever so desi rabl e to do so, whi ch I am far from bel i evi ng that i t i s, or that the Consti tuti on requi res.
The onl y qual i fi cati on of such l ati tude as otherwi se woul d be consi stent wi th the three-fol d di vi si on of power, i s the provi so i n secti on 22 of the Organi c Act 'that al l executi ve functi ons of the government must be di rectl y under the Governor General or wi thi n one of the executi ve departments,' etc. Act of August 29, 1916, c. 416, 39 Stat. 553, U. S. C. ti t. 48, 1114. That does not appear to me to govern the case. The corporati ons concerned were pri vate corporati ons whi ch the l egi sl ature had power to i ncorporate. Whoever owned the stock the corporati on di d not perform functi ons of the government. Thi s woul d be pl ai n i f the stock were i n pri vate hands, and i f the government bought the stock from pri vate owners the functi ons of the corporati ons woul d not be changed. If I am ri ght i n what I have sai d I thi nk that ownershi p woul d not make voti ng upon the stock an executi ve functi on of the government when the acts of the corporati on were not. I cannot bel i eve that the Legi sl ature mi ght not have provi ded for the hol di ng of the stock by a board of pri vate persons wi th no duty to the government other than to keep i t i nformed and to pay over such di vi dends as mi ght accrue. It i s sai d that the functi ons of the board of control are not l egi sl ati ve or judi ci al and therefore they must be executi ve. I shoul d say rather that they pl ai nl y are no part of the executi ve functi ons of the government but rather fal l i nto the i ndi scri mi nate resi due of matters wi thi n l egi sl ati ve control . I thi nk i t woul d be l amentabl e even to hi nt a doubt as to the l egi ti macy of the acti on of Congress i n establ i shi ng the Smi thsoni an as i t di d, and I see no suffi ci ent reason for denyi ng the Phi l i ppi ne Legi sl ature a si mi l ar power.
Mr. Justi ce BRANDEIS agrees wi th thi s opi ni on.
Mr. Justi ce McREYNOLDS (di ssenti ng).
I thi nk the opi ni on of the majori ty goes much beyond the necessi ti es of the case.
The Organi c Act i s careful to provi de:
'That al l executi ve functi ons of the government must be di rectl y under the Governor General or wi thi n oen of the executi ve departments under the supervi si on and control of the Governor General .'
A good reason l i es behi nd thi s l i mi tati on whi ch does not apply to our federal or state governments. From the l anguage empl oyed, read i n the l i ght of al l the ci rcumstances, perhaps i t i s possi bl e to spel l out enough to overthrow the chal l enged l egi sl ati on. Beyond that i t i s unnecessary to go.
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Sec. 22. That, except as provi ded otherwi se i n thi s act, the executi ve departments of the Phi l i ppi ne government shal l conti nue as now authori zed by l aw unti l otherwi se provi ded by the Phi l i ppine Legi sl ature. When the Phi l i ppi ne Legi sl ature herei n provi ded shal l convene and organi ze, the Phi l i ppi ne Commi ssi on as such, shal l cease and determi ne, amd the members thereof shal l vacate thei r offi ces as members of sai d commi ssi on: Provi ded, that the heads of executi ve departments shal l conti nue to exerci se thei r executi ve functi ons unti l the heads of departments provi ded by the Phi l i ppi ne Legi sl ature pursuant to the provi si ons of thi s Act are appoi nted and qual i fi ed. The Phi l i ppi ne Legi sl ature may thereafter by appropri ate l egi sl ati on i ncrease the number or abol i sh any of the executi ve departments, or make such changes i n the names and duti es thereof as i t may see fi t, and shal l provi de for the appoi ntment and removal of the heads of the executi ve departments by the Governor General : Provi ded, that al l executi ve functi ons of the government must be di rectl y under the Governor General or wi thi n one of the exeucti ve departments under the supervi si on and control of the Governor General . * * * 48 USCA 1114.
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