This action was brought by Schubert, the defendant in error, against the Philadelphia, Baltimore, & Washington Railroad Company, to recover damages for personal injuries. He received the injuries on May 13, 1908, while in its service as a brakeman within the District, and they were dut to the negligence of a fellow servant.
The company pleaded the general issue, and in addition filed a special plea that Schubert was at the time a member of its 'relief fund,' under a contract of membership made in 1905, in which it was agreed that the company should apply, as a voluntary contribution from his wages, $2.10 a month for the purpose of securing the benefits described in certain regulations. These contributions continued from October 18, 1905, to May 13, 1908, the date of the accident. Among the regulations, by which he agreed to be bound, was the following: '58. Should a member or his legal representative make claim, or bring suit, against the company, or against any other corporation which may be at the time associated therewith in administration of the relief departments, in accordance with the terms set forth in regulation No. 6, for damages on account of injury or death of such member, payment of benefits from the relief fund on account of the same shall not be made until such claim shall be withdrawn or suit discontinued. Any compromise of such claim or suit, or judgment in such suit, shall preclude any claim upon the relief fund for benefits on account of such injury or death, and the acceptance of benefits from the relief fund by a member or his beneficiary or beneficiaries, on account of injury or death, shall operate as a release and satisfaction of all claims against the company and any and all of the corporations associated therewith in the administration of their relief departments, for damages arising from such injury or death.'
A stipulation that the acceptance of benefits should constitute a release from all claims for damages was also incorporated in the application for membership.
The plea further set forth that the relief fund was formed by voluntary contributions from the employees of the defendant company and other companies in association with it for the purpose, appropriations by the company whenever necessary to make up any deficit, the income or profit derived from investments of the moneys of the fund, and such gifts or legacies as might be made for its use. The companies took general charge of the department, guaranteed the fulfilment of its obligations, became responsible for the safe-keeping of its funds, supplied the necessary facilities for conducting the business of the department, and paid all its operating expenses. On December 31, 1908, the total number of employees of the defendant company was 8,458, of which 6,909 were members of the 'relief fund;' during the year 1908 the company contributed, as the cost of administration, the sum of $21,557.02, and during the period of the plaintiff's membership its total contribution for this purpose was $57,610.51. In addition, the company furnished the facilities of its mail, express, and telegraph departments free of charge.
It was also alleged that after his injury Schubert (between June, 1908, and August, 1908) had voluntarily accepted benefits amounting to $79; that he had subsequently presented his claim for damages, in view of which no further payments were made, and that the acceptance of the benefits above mentioned was a bar to his action.
The court sustained a demurrer to the special plea, and Schubert recovered judgment for $7,500, which was affirmed by the court of appeals.
The questions presented by the assignments of error relate to the validity of the employers' liability act of April 22, 1908, chap. 149 (35 Stat. at L. 65, U.S.C.omp. Stat. Supp. 1911, p. 1322), under which the action was maintained; and particularly, both to the applicability, and to the validity, if applicable, of § 5 of that act, upon which the court below based its ruling as to the insufficiency of the special plea.
That Congress did not exceed its power, in imposing the liability defined by the statute, has been decided by this court. Second Employers' Liability Cases, 223 U.S. 1, 56 L. ed. -, 32 Sup. Ct. Rep. 169. Section 5 provides: