Charles Evans Hughes

“ The dismissal of the cross-appeal is also declared to be without prejudice 'to any rights or remedies in law or in equity' which the intervening defendants 'may have or be entitled to upon the act being made applicable to them by the registration of any holding company of which they are subsidiary companies.' All rights of defendants, including interveners, are thus fully reserved with respect to the application to them of any provision of the act outside of those contained in the particular sections which are enforced by the decree.
Petitioners insist that the act is invalid as a whole ”

“ These companies in turn own directly or through subholding companies substantial majorities, in some cases approximating complete ownership and in all cases sufficient to insure voting control, of the common stocks of operating gas and electric utilities. The 'electric operations' of subsidiaries in the Bond & Share system are conducted in thirty-two states. Some operate only within a single state, some in two or more states, transmitting energy across state lines for their own account, and some sell energy at wholesale in interstate commerce. ”

“ In the instant case, the penalty attaches to the use of the instrumentalities of commerce and of the mails by those who, engaged in that use, refuse to submit to section 5 and thus through registration and the statement which is incident to registration to supply the information which Congress is entitled to demand, and has demanded, with respect to their organization and practices. ”

“ The terms of the injunction follow closely the provisions of section 4 (a) and do not extend beyond them. The escape the penalty and the enforcing provisions of the decree, all that the defendants have to do is to register with the Commission and assume, under section 5, the obligation to file the described registration statement. All their rights and remedies with respect to other provisions of the statute remain without prejudice. Their objections to the affirmative provisions of the decree are untenable. ”

“ And while Congress may not exercise its control over the mails to enforce a requirement which lies outside its constitutional province, when Congress lays down a valid regulation pertinent to the use of the mails, it may withdraw the privilege of that use from those who disobey. ”

“ The Government replies that while the other provisions are applicable only to registered companies and their subsidiaries, sections 4 (a) and 5 are drafted so as to be operative independently and that the registration provisions themselves constitute 'an effective instrument of informatory regulation.' 'If, for example,' argues the Government, 'section 11 (15 U.S.C.A. § 79k) dealing with corporate reorganizations were adjudged invalid, there is no inherent reason why the other regulatory provisions could not be enforced as the Congress provided. ”

“ The following statement is found in paragraph (a) of section 1, 15 U.S.C.A. § 79a (a) : 'Public-utility holding companies and their subsidiary companies are affected with a national public interest in that, among other things, (1) their securities are widely marketed and distributed by means of the mails and instrumentalities of interstate commerce and are sold to a large number of investors in different States; (2) their service, sales, construction, and other contracts and arrangements are often made and performed by means of the mails and instrumentalities of interstate commerce ”

“ Third. Petitioners contend that, standing by themselves, sections 4 (a) and 5 transgress constitutional restrictions. These sections have three parts. Section 5 (a) provides for the filing of a notification of registration. Section 5 (b) makes it the duty of every registered holding company to file a registration statement, with documents and certain detailed information, within a reasonable time after registration. ”