Rosenthal v. New York

Background

A man who bought and received copper wire used by the Bell Telephone Company pleaded guilty after being charged under a 1903 New York law. The law added a rule aimed at dealers in junk, metals, and second-hand materials: they must make a diligent inquiry to be sure sellers have a legal right to sell certain wire and metal used by railroads, telephone, telegraph, gas, or electric companies. He argued the law violated the Fourteenth Amendment’s protections, and state courts upheld the conviction before the case reached this Court.

Reasoning

The central question was whether the 1903 amendment was an unreasonable or unconstitutional interference with liberty or an improper classification that denied equal protection. The Court read the statute as applying only to stolen property and requiring diligent inquiry rather than imposing an impossible absolute duty. It found the rule a reasonable exercise of the State’s authority to prevent theft because junk dealers are a likely market for stolen metals and are well placed to detect suspicious sales. The Court rejected claims that it violated due process or equal protection and affirmed the conviction.

Real world impact

The decision means junk and scrap dealers who buy copper, wire, or similar materials used by utility companies can be criminally prosecuted if they fail to make reasonable inquiries about a seller’s right to sell. The ruling supports stronger protection for utility companies’ scattered, easily stolen materials. It affirms the State’s ability to impose business-specific duties to reduce theft.