ii» ^^^m 8 Baldwin The growth of Law during the past Year N ■1 THE LIBRARY OF THE UNIVERSITY OF CALIFORNIA LOS ANGELES The Growth of Law During the Past Year Annual Address Delivered Before the Bureau of Comparative Law of the American Bar Association Boston, September 3, 1919 By SIMEON E. BALDWIN Director of the Bvreau i i I AXXrAL ADDRESS. HY SIMEON E. BALDWIN, OF CON.XECTICUT. DIRECTOR OF THE Hl'RE^Vt' OF COMPARATIVE LAW. THE GROWTH OF LAW DURING THE PAST YEAR. Law is always changing- its dress. It puts on some new things and drops some ohl ones. Generally it puts on more than it takes off. In some years it puts on less than it takes oflP. This has been pucli a year. Ax Eba of Repeal. Cuming late into the world war, the Fnited States found the other great powers already equipped with such laws and decrees as they thought fittest for their protection. It followed where they led, and in some instances went farther than most of them. Since the armistice of Xovember, 1918, the course of legislation has run, with accumulating rapidity, towards statutes and decrees of repeal. I say "• decrees,*' because there have been many, proceeding from the President, or from executive boards constituted by au- thority of the United States for purposes incident to the war, or from state governments, Avhich without bearing the name of stat- utes, have l)een, within their proper field, of equal force, under the principle tliat public danger may warrant the substitution of executive process for judicial process.* FoRKKiN Commerce. The President has now either revoked or softened a large part of his jirohibitor}' orders, issued on our coming into the war. which affected various kinds. * Meyer vs. Peabody, 212 U. S., 78, 85. which affected commercial intercourse with foreign countries of 1019879 4 The new policy of Congress as to encouraging foreign trade is in striking contrast to the views of which the Sherman Act was an expression. Not only is the formation of export trade associations freely permitted, but their business can be carried on under an agreement that no member can sell for export except through it or by its leave. Several enormous combinations of this character have already been formed. The government also has gone into foreign trade directly on its own account, and organized a War Finance corporation with a capital supplied by the United States of $500,000,000. The United States is the sole stockholder. It has sought the aid of the states in incorporating some of its official agencies. A majority of the members of the " War Trade Board ^' obtained incorporation in 1918, under the name of the " War Trade Board of the United States, Eussian Bureau, In- corporated," under the general incorporation laws of Connecticut. The authorized capital was $5,000,000. Each signer of the articles of association subscribed for one share, and the chairman also subscribed for 49,990 shares as " Chairman of the War Trade Board." The incorporation is in perpetuity and the capital was supplied by the President of the United States out of the hun- dred million dollar appropriation to be expended by him for national security and defence. The " certificate of incorpora- tion " describes its purposes as embracing, among other things, carrying on a general mercantile and commercial business in any part of the world ; engaging in all kinds of manufacturing ; and building, buying, and operating railways, telephone and telegraph systems, gas and electric light companies; canals and irrigation systems; shipping and warehouses; and engaging in banking; all in any part of the world outside of the State of Connecticut. A considerable business has already been transacted by this board in making exports to Eussia. Procuring such a charter for such objects is one of the tokens of the closer union of state and national activities accomplished by the great world war. To get a perpetual grant of such priv- ileges from Congress, if possible at all, would have been likely to take months of effort. Under the American principles of freedom of incorporation, as administered in the states, it was, or might have been, an affair of a few hours. Till-; Takis I'kack Coxfkkknc k. A serious attempt has liccu made during tJie last ivw mouths, by ail international conrcreiice at Paris, to shape a scheme for world government as respects many of ilic international relations which are of the higlicst importance. The conference has been so organized as to leave the main con- trol of its proceedings with the great Powers, exclusive of Iiussia. In the Rules of the Conference they are named (the United States, the British Empire, France, Italy and Japan) and described as " the belligerent Powers with general interests." Most of the other belligerent powers are described as having " special in- terests." iS'eutral powers and states in process of formation are only to be heard as to matters directly affecting them, and then only if summoned in Ijy the powers with general interests.'' The treaty of peace with Germany, which they have prepared, embodies a detailed Constitution for a League of Xations. This has already been ratified by several of the great Powers, and has been treated by the Confe'rence and in the treaty with Poland of last summer (Art. XIII) as now in force as respects certain matters of large importance. As completed by that body it made, as submitted to our Senate, a volume of about 200 pages. Built up, as it necessarily must have been, on a series of compromises, it was inevital)lo tliat such a document must contain some pro- visions obscurely worded. The so-styled " Supreme Council " of the great Powers, which is for the time being the voice of the Conference, decided on July 29, to appoint a permanent commission, to co-ordinate and interpret it. This connnission is to be comprised of five members, each representing one of the great Powers, and it is not expected to sit until the treaty shall have gone into full effect. &^ Interntional Tribunals. Xo provision whatever is made by the treaty for the creation of any international court, excepting the special tribunal for tid- ing the former Kaiser (Art. 227), aiul the mixed Arbitral Tri- bunal (Art. 304, et srq.), M'hich is essentially an administrative bureau. It contemplates, however, the future creation of a " Per- *Am. Journal of International Law, Supplement, XIII. 6 nianeJit Court of Jiiteruatioiial Justice"' (Art. 4"^G) as a ])art of the plan for organizing an international control over labor. Whether the " Permanent Court of Arbitration," set up by the Hague Conference of 1899 and 1907, is to be replaced by such a " Permanent Court of International Justice," or whether the two tribunals may both be in operation at the same time is not indi- cated by the terms of the treaty. The constituents of each are at present not the same. The Hague Tribunal represents all nations that were parties to the Hague Convention of 1907. Any new court, organized under a new treaty, would represent only the powers adhering to the treaty of peace of 1919. Delicate ques- tions are evidently here presented for adjustment. A treaty between Brazil and Uruguay, framed on the principle of general obligatory arbitration, was concluded December 27, 1916, and promulgated on June 27, 1918.'' Every dispute whieli cannot l)e settled by diplomatic means is to be referred to an arbiter, who must be a chief of state, the president of a superior court or tribunal of Justice, or a person generally regarded as specially conversant with the subject of dispute. In case of a failure to agree on tlie arbiter the contro- versy shall be submitted to the Permanent Court of Arbitration at the Hague. A treaty of the same general character was negotiated in 191(5 between Spain and the Argentine Repul)lic. The arbitration tribunal is to consist of three persons, one appointed by each power, and those two to select an umpire. Preferably all are to be taken from the list of members of the Hague tribunal, and the umpire must be. The so-called " Bryan treaties " generally recognized the Per- manent Court of Arbitration at the Hague as an appropriate tri- bunal for proceedings under them. It would seem to be safe to assume that the absence of any at- tempt in the pending scheme of a League of Xations to set up a new court of arbitration indicates an intention to recognize that of the Hague as for tlie present continuing in existence, and open to all the world, as before. The advantages of the Central American Court of Justice, which was abandoned after ten years trial in 1918, are becoming 'Am. Bar Association Journal, V, 216. ^Ihid., 299. more obvious in view of recent occurrences. Several unsuccessful attempts to put all the Central American Powers on a peace footing followed, the last having been in July, 1919, when Sal- vador proposed to Guatemala, Honduras and Nicaragua that the four republics should take mutual friendly action towards se- curing the domestic peace of Costa Rica, and normalizing inter- national affairs in Central America. It is to be hoped that something in this direction may be in fact accomplished by the good offices of the Second Pan-American Financial Conference, which meets at Washington on January 12, 1920. Aerial Xavigatiox. The agreements reached by the Peace Conference have been largely bottomed on the reports of special commissions of experts which it appointed from time to time. One of them was the " Aeronautic Connnission," which grew out of a call by France, in March, 1919, of an international Conference on Aerial Naviga- tion. This commission sent in a draft convention relative to Aerial Navigation (Treaty of Peace, Art. 319), which was adopted and signed by all the great Powers excepting the United States. It recognizes the sovereignty of each nation over the air above its terxitorv^ but on terms of allowing its use by other countries or their citizens in a reasonable manner. The minimum age for pilots and navigators is nineteen. No one can be an aeronaut without a license, based on a special examina- tion, and there must be a re-examijiation every six months. Any state, party to the convention, can increase the requirements, but cannot reduce them. Special Staxdixg Commissions. Special standing commissions to consider proper subjects of international agreements, or administer remedies of an inter- national character, have been greatly multiplied l)y tlie war. There are now some 60 of these bodies with which the United States has relations of more or less importance, and our Depart- ment of State is considering the establishment of a new bureau to have general charge of foreign intercourse through such or- ganizations, so far as they fall within the jurisdiction of the United States, 8 Alien^s. The rule that a suit may he brought and, so far as necessary to do justice, maintained here against an alien enemy, and even by one, has been reaffirmed by the Supreme Court of the United States.' In the Casdagli case, the House of Lords has decided that in countries where foreigners are protected by extraterritorial au- thority which may be exercised through consular jurisdiction, a domicil of choice may be acquired by residence and intention, just as freely as in countries where foreigners are not subject to extra- territorial privileges.* The Immigration Act of 1917 was amended in important par- ticulars by an Act of October KS, 1918. It now provides for the deportation of " aliens who are anarchists ; aliens who believe in or advocate the overthrow by force or violence of the Government of the United States or of all forms of law ; aliens who disbelieve in or are opposed to all organized government; aliens who advo- cate or teach the assassination of public officials; aliens who advocate or teach the unlawful destruction of property; aliens who are members of or affiliated with any organization that enter- tains a belief in, teaches, or advocates the overthrow by force or violence of the government of the United States or of all forms of law, or that entertains or teaches disbelief in or opposition to all organized government, or that advocates the duty, necessity, or propriety of the unlawful assaulting or killing of any officer or officers, either of specific individuals or of officers generally, of the Government of the United States or of any other organized government, because of his or their official character, or that advocates or teaches the unlawful destruction of property." Eeference was made in the annual address before the Bureau, last year, to the partial suspension of regulations governing immigration, by the issue of what are called " war emergency labor permits." The Department of Labor has announced that iTo more will l)e granted, and that those already existing will become void on January 15, 1920. •Watts, Watts & Co. vs. Unione Austrica, 248 U. S., 21. •Casdagli vs. Casdagli, 87 L. J. P.. 49. In Peterson vs. Iowa, 245 F. S., 170, it was held the treaty between Denmark and the United States, as to discrimination in taxes, did not alTect the right of one of our states to impose a higher tax on Danes to whom property within its territory came by its laws than tliat paid by its own citizens under similar cir- cumstances. The Force of Interxatioxal Law, As the smoke of Ijattle clears away, we are Ijeginning to see more clearly that the last five years have left international law stronger than ever. In every civilized country it is recognized as a rule of decision, even when that rule has bc^n disregarded in its official action. I will not weary you by quoting, in illustration of this, froni judgments of the courts to which, in previous addresses on oc- casions like this, the attention of the bureau has been called: such as the Zamora, in England, and the steamship Apimni, in the United States.^ The foundations of the Law of Xations are too deeply laid in the \Qry heart of civilization to be overthrown, even in a war involving half of the world. The obligations which it imposes may be regarded as flowing, in part at least, from the doctrine of estoppel. Every nation which accepts international law as a governing force in respect to international relations, imjiliedly agrees with other nations to continue to recognize that force until notice to the contrary is given ; and notice in advance. It is thus a case of estoppel in pais. The project for a League of Xations forming part of the treaty of peace with Germany is silent as to questions of further defini- tions or rules of international law. In view of this, the Executive Council of the x^merican Society of International Law, in ]\Iarch, 1919, adopted a vote urging the Paris Conference to provide for a general conference of the Powers to meet within the next five years, not earlier than 1921 to review the condition of international law, and state it in authoritative forms. ^243 U. S., 124. 10 The German Attitude Towards International Law. The Constituent German National Assembly, which was opened in February, 1919, will, under the new Constitution which it has framed, succeed to the powers of the Reichstag, but preserve its present name. In August, 1919, it inserted in the draft of the Constitution a provision that the generally accepted niles of international law shall be a basic part of German law. The Constitution as adopted contains these provisions : The President shall be chosen by direct popular vote on the basis of universal suffrage. His term is seven years. The legislative powers of the several states are greatly curtailed. In the Imperial Council each state will have at least one vote, but in no case more than two-fifths of the total number that may be cast by all. Prussia thus loses her predominance. State courts, to try those accused of political crimes, will be created by an imperial law. Xo German can accept a title or decoration from a foreign gov- ernment. All men and women have equal rights, and no special privi- lege can be recognized based on birth or social status ; but exist- ing ranks of nobility are not abolished. All citizens of Germany are to have complete freedom as to religion. 'No state church is to exist. Private schools for children cannot be set up without leave of the government. In all schools efforts are to be made to edu- cate their students in the spirit of the German jDeople and of reconciliation with the peoples of the world. The Espionage and Draft x\cts. The Supreme Court of the United States have affirmed the validity of the Espionage Act as amended in 1917. Nearly a thousand prosecutions have been instituted under it, about a third of which resulted in convictions. Under the Selective Draft Act about 12,000 prosecutions were instituted, and over 8000 convictions obtained.* • This Act was held valid by the Supreme Court in the Selective Draft Law Cases, 245 U. S., 366. 11 The war found ns Avitli treaties made witli various powers stipulating that their citizens, residiii*^ liere, shoukl not be liable to be drafted into compulsory military service. Some of them were in fact drafted under the Selective Draft Act. The annual report of the attorney-general contains this para- graph in reference to the legal question : "May the subject of a neutral country be drafted into the military service when the treaty between his country and this country provides to the contrary? Our courts have unanimously held that the Selective Service Act supplants all previously exist- ing conflicting treaty provisions on the subject." A decision of the District Court has been made to this effect, in regard to our treaty with Spain ° and the doctrine that the later of two inconsistent laws emanating from the same sovereign controls in his courts is well settled. That we have broken our bargain with Spain cannot affect the legal situation in American courts, however it may involve our national good faith. The states are following in the same lines, in support of their right of conscription. Maine, this year, made her citizens liable to draft for the militia of the state, that is, the national guard, whenever there are not men enough in the guard to fulfil the re- quirements of the Act of Congress respecting allowances from the United States towards its support. The Protectiox of Equal Laavs, The tendency is growing stronger every year to give a liberal construction to the personal guarantees of the fourteenth amend- ment to the Constitution of the United States. A statute of Iowa, making it a misdemeanor for an employee of a hotel or barber to accept a tip, has been held unconstitu- tional, on the ground that as the employers were left free to accept tips, the employees did not receive the equal protection of the law." A Kentucky statute has been declared void, which provided that none of the taxes raised from the property of a Avhite person or corporation shall be used for the support of colored common schools, and that the taxes raised from property of colored persons shall not be used for the support of white schools. ^ Ex parte Larrucea. 249 Fed. Rep.. 981. '"Dainahoo vs. Huber, 171 Northwestern Rep., 123. 12 It was held that the attempt to assign all taxes upon corpora- tions to white schools was violative of the " equal protection " clause of the State Constitution. Intoxicating Liquors. A War Time Prohibition Act, styled a Food Conservation Act, which was approved by the President a few days after the armis- tice (November 21, 1918) went into effect on July 1, 1919. It forbids tlie manufacture or sale of intoxicating liquors for bever- age ])ur})oses after that date, and is to continue in force during the world war and until the President proclaims the completion of demobilization. It purports to be designed to promote the use of grain as food, and prevent its use for brewing or distilling purposes. I^o penalties for the violation of the act are provided. The eighteenth amendment to the Constitution of the United States becomes operative on January 16, 1920. It prohibits the manufacture, sale, transportation, export or import, of intoxi- cating liquors, but does not define what shall be deemed to be such liquors. Conflicting decisions have been rendered in the United States District Courts, as to whetlier beer containing not more than 2f per cent of alcohol is intoxicating. The Circuit Court of Appeals for the New York Circuit holds this to be a justiciable question of fact. Appeals have been taken which will present this point before the Supreme Court of the United States next month. The attorney-general claims that beer is intoxicating which con- tains more than 1^ per cent of alcohol. Ehode Island passed a bill last April declaring that beer con- taining not over -1 per cent of alcohol was not an intoxicating liquor. The beer commonly used in Germany before the war contained 10 or 11 per cent of alcohol. Tlie war cut it down to 3 per cent. The books of the Kew York Life Insurance Company, which for many years has done a large business there, show that for tlie 11 years before the war the total mortality among those whom it insured was 107 per cent of the company's standard mortality, calculated for all risks in all countries; whereas during the four years including the war the percentage was only 9,") ])er cent. This shows that there was a much higher rate of mortality during the times of peace, and the friends of prohil)ition claim this as 13 evidence of the beneiicial circcts of rcsti'i(ti