George Henry v. William Henkel

• Decision Date: 30 November 1914
• Docket Number: No. 216,216
• Citation: 35 S.Ct. 54,59 L.Ed. 203,235 U.S. 219
• Parties: GEORGE G. HENRY, Appt., v. WILLIAM HENKEL, United States Marshal for the Southern District of New York
• Court: U.S. Supreme Court

235 U.S. 219

35 S.Ct. 54

59 L.Ed. 203

GEORGE G. HENRY, Appt.,

v WILLIAM HENKEL, United States Marshal for the Southern District of New York.

No. 216.

Argued February 24 and 25, 1914.

Decided November 30, 1914.

Messrs. John C. Spooner, Paul D. Cravath, John D. Lindsay, and Stuart McNamara for appellant.

[Argument of Counsel from pages 220-223 intentionally omitted] Solicitor General Davis and Mr. W. C. Herron for appellee.

[Argument of Counsel from page 223 intentionally omitted] Mr. Justice Lamar delivered the opinion of the court:

In the 62d Congress, the House of Representatives (H. R. 429, 504) adopted a resolution authorizing the members of the committee on banking and currency to investigate and make a report as to the financial affairs and activities of national banks, interstate corporations, and groups of financiers as a basis for remedial and other legislative purposes. To that end the committee was authorized to send for persons and papers and to swear witnesses.

Among those summoned and sworn was the appellant, George G. Henry, who was examined at length as to many matters relating to the formation of syndicates and the flotation of stock. He testified that he was a member of the firm of Salamon & Company, bankers in New York, who were accustomed to form syndicates for the acquisition and sale of blocks of stock and to grant participation therein to trust companies and national banks—their directors and corporate officers also being frequently members of the same syndicate. In reference to one of these transactions he testified that Salamon & Company had agreed to pay $8,215,262 for $22,500,000 preferred and common stock in a California oil company; thereupon Salamon & Company, Lewisohn Brothers, Hallgarten & Company, bankers in New York, together with a fourth banking firm (whose name witness did not disclose) had then formed a syndicate for acquiring and disposing of this $22,500,000 of oil stock. He testified how the shares were allotted, and that 12 1/2 per cent went to the unnamed persons in the banking group; that in the subsequent disposition of the stock a number of shares were required by 15 individuals, some of whom were officers of national banks located in New York, Chicago, and Detroit. Other shares were allotted to those who were officers in trust companies in New York and Chicago. Letters were written offering to allot part of this oil stock to the New York syndicate, but before acceptance of the allotment all of the stock had been sold at a profit of nearly $500,000, a part of which went to the members of the New York syndicate (officers of banks), even though they had not previously accepted the allotment. They thus, in effect, received a present of their share of the profits. He was asked to give the names of those composing the New York syndicate, but claimed to have the right under the Constitution to decline to answer the question, saying also that he 'did not want to disclose the names of the participants in the New York syndicate, although he understood it to be the wish of the subcommittee that he should, for the reason that he would consider it dishonorable to reveal the names of his customers unless compelled to do so.'

The committee ordered the fact of his refusal to answer to be reported to the House for action—majority and minority reports being made. After discussion, the House of Representatives directed that the facts should be laid before the grand jury of the District of Columbia. That body returned an indictment against Henry, charging him with refusing to answer questions propounded by the committee. Rev. Stat. §§ 101-104, U. S. Comp. Stat. 1901, pp. 54, 55. A warrant issued and Henry was arrested in New York, and when taken before the commissioner demanded an examination.

On the hearing and before the introduction of any testimony, he moved for his discharge on the ground that* the commissioner was without jurisdiction, since it appeared on the face of the complaint that petitioner was not charged with any offense against the United States.

The motion was denied, and, it having been admitted that Henry was the person described in the indictment, the government introduced the bench warrant and a certified copy of the indictment as sufficient proof of probable cause.

The petitioner then offered in evidence the resolution defining the scope of the inquiry, with a transcript of his testimony before the committee—including the question which he refused to answer and his reasons therefor. Copies of the majority and minority reports to the House were also incorporated in the record. After argument the commissioner ordered Henry to be held in custody until the district judge could issue a warrant for his removal to the District of Columbia under the provisions of Revised Statutes, § 1014, U. S. Comp. Stat. 1901, p. 716.

Thereupon Henry applied to the district judge for a writ of habeas corpus, and on the hearing introduced all of the testimony that had been submitted to the commissioner, and asked for his discharge on grounds similar to those which had been presented to the committing magistrate.

After argument the district judge discharged the writ, and an appeal was entered to this court, where petitioner's counsel, renewing the objections made in the district court, insist that the resolution did not authorize an inquiry as to the matter about which Henry refused to testify; that the facts charged do not constitute an offense under the statute; or, if so, that the statute is void. On the authority of Re Chapman, 166 U. S. 668, 41 L. ed. 1158, 17 Sup. Ct. Rep. 677; Kilbourn v. Thompson, 103 U. S. 168, 26 L. ed. 377, and other cases they insist that in the trial of contested elections, in cases involving the expulsion of members, or other quasi judicial proceedings, the House or Senate may, like any other court, compel material and noncriminatory disclosures. But they argue that, in view of the provisions of the 4th Amendment to the Constitution, neither House can compel a citizen to disclose his private affairs as a basis for legislation,—particularly where, as in the present case, the witness was not contumacious, but had fully and freely answered all material questions; had disclosed the fact that national banks and their officers were often members of the same syndicate, and had only refused to give the names of certain bank officials when the names themselves could not by any possibility be of assistance in shaping legislation. They therefore contend that the papers show on their face that there was no jurisdiction to issue the warrant on which he was held, and that Henry should not be subjected to the hardship of being removed to the District of Columbia to stand trial upon an indictment which affirmatively shows that no crime has been committed.

The government, on the other hand, insists that Rev. Stat. § 104, U. S. Comp. Stat. 1901, p. 55, is constitutional, and that Congress may provide for the punishment of witnesses who, in answer to a question propounded by its authority, fail to make noncriminatory disclosures and furnish information deemed necessary as a basis...