 A three-judge panel of the United States District Court for the Southern District of New York, held the statutes unconstitutional and enjoined enforcement of the challenged provisions.On appeal, the Supreme Court reversed the decision of the district court, holding that the statutes were within the state's police power.The Supreme Court held that the state need not show the State action was necessary to solve the identified problem and that there was no basis for assuming that the state security provisions would be improperly administered.