People v. McCann
People v. McCann
Opinion of the Court
Judgment affirmed.
Concur: Desmond, Dye, Fund and Burke, JJ. Van Voorhis., J., dissents in the following opinion in which Conway, Ch. J., and Froessel, J., concur.
Dissenting Opinion
The constitutionality of the Martin Act has been established (General Business Law, art. 23-A: Dunham v. Ottinger, 243 N. Y. 423; People v. Federated Radio Corp., 244 N. Y. 33), nor do we question that appellant should have been restrained from engaging in fraudulent practices in respect to stocks, bonds and other securities. But the injunction decree is so obscure and universal in scope that it seems to us that it should not be approved by this court without modification. The changes proposed by respondent are
According to the usual meaning of words, this decree prohibits defendant from being employed by or connected in any capacity with any corporation which has sold or may sell its stock to the public, or in a business which buys or sells commodities. This may not have been what was intended, and there may be no intention to enforce the decree in that manner; nevertheless, the Martin Act is at best a drastic exercise of the police power, and this court has warned in an opinion by Chief Judge Hiscock, in sustaining its constitutionality, that “ this statute confers upon the Attorney-General great and far-reaching powers which might be made a means of persecution and injury of perfectly honorable members of the business in question by an unwise or unscrupulous official.” (Dunham v. Ottinger, supra, p. 438.)
This prosecution is neither unwise nor unscrupulous, but the quotation from Dunham v. Ottinger (supra) emphasizes the need for precision rather than the opposite in the phrasing of
The judgment appealed from should be modified by remitting the action to Special Term for the purpose of drafting and entering a clear and comprehensible decree, permanently enjoining appellant from engaging in activities prohibited by the Martin Act.
Judgment affirmed.
Reference
- Full Case Name
- The People of the State of New York v. Eugene B. McCann, Doing Business under the Name of McCann Building & Management Fund
- Status
- Published