Schechter Poultry Corp. v. United States
Encyclopedia
A.L.A. Schechter Poultry Corp. v. United States, 295 U.S. 495
(1935), was a decision by the Supreme Court of the United States
that invalidated regulations of the poultry
industry according to the nondelegation doctrine
and as an invalid use of Congress's power under the commerce clause
. This was a unanimous decision that rendered the National Industrial Recovery Act
unconstitutional, a main component of President
Roosevelt
's New Deal
.
(NIRA) of 1933. These included price
and wage fixing, as well as requirements regarding the sale of whole chickens, including unhealthy ones. The government claimed the Schechters sold sick poultry, which has led to the case becoming known as "the sick chicken
case". Also encompassed in the decision were NIRA provisions regarding maximum work hours and a right of unions to organize. The ruling was one of a series which overturned elements of President Franklin D. Roosevelt's New Deal
legislation between January 1935 and January 1936, until the Court's intolerance of economic regulations shifted with West Coast Hotel Co. v. Parrish
, 300 U.S. 379 (1937).
The National Industrial Recovery Act allowed local codes for trade to be written by private trade and industrial groups. The President could choose to give some codes the force of law. The Supreme Court's opposition to an active federal interference in the local economy caused Roosevelt to attempt to pack the Court
with judges that were in favor of the New Deal.
There were originally sixty charges against Schechter Poultry, which were reduced to eighteen charges plus charges of conspiracy by the time the case was heard by the U. S. Supreme Court.
Among the eighteen charges against Schechter Poultry were "the sale to a butcher
of an unfit chicken" and the sale of two uninspected chickens.
Schechter was located at "Schechter Live Poultry Market", 991 Rockaway Avenue
, Brooklyn
, New York. This location has been demolished. Also, "A.L.A. Schechter Poultry Corporation" was located at 858 East 52nd Street, Brooklyn, New York. No building at that location exists as of 2011, the closest building to this site is 860 East 52nd Street.
Hughes
wrote for a unanimous Court in invalidating the industrial "codes of fair competition" which the NIRA
enabled the President
to issue. The Court held that the codes violated the constitutional
separation of powers
as an impermissible delegation of legislative power to the executive branch. The Court also held that the NIRA provisions were in excess of congressional
power under the Commerce Clause
.
The Court distinguished between direct effects on interstate commerce, which Congress could lawfully regulate, and indirect, which were purely matters of state law. Though the raising and sale of poultry
was an interstate industry, the Court found that the "stream of interstate commerce" had stopped in this case—Schechter's slaughterhouses bought chickens almost exclusively from intrastate wholesalers and sold completely exclusively to intrastate buyers. Any interstate effect of Schechter was indirect, and therefore beyond federal reach.
Though many considered the NIRA a "dead statute" at this point in the New Deal scheme, the Court used its invalidation as an opportunity to affirm constitutional limits on congressional power, for fear that it could otherwise reach virtually anything that could be said to "affect" interstate commerce and intrude on many areas of legitimate state power.
Justice Cardozo's concurring opinion clarified that a spectrum approach to direct and indirect effects is preferable to a strict dichotomy. Cardozo felt that in this case, Schechter was simply too small a player to be relevant to interstate commerce.
This traditional reading of the Commerce Clause was later disavowed by the Court, which after threats from Roosevelt began to read congressional power more expansively in this area, in cases such as National Labor Relations Board v. Jones & Laughlin Steel Corporation
(1937). However, more recent cases such as United States v. Lopez
, 514 U.S. 549 (1995) perhaps signal a growing inclination in the Court to once again affirm limits on its scope.
remarked that, “This is the end of this business of centralization, and I want you to go back and tell the president that we're not going to let this government centralize everything."
Case citation
Case citation is the system used in many countries to identify the decisions in past court cases, either in special series of books called reporters or law reports, or in a 'neutral' form which will identify a decision wherever it was reported...
(1935), was a decision by the Supreme Court of the United States
Supreme Court of the United States
The Supreme Court of the United States is the highest court in the United States. It has ultimate appellate jurisdiction over all state and federal courts, and original jurisdiction over a small range of cases...
that invalidated regulations of the poultry
Poultry
Poultry are domesticated birds kept by humans for the purpose of producing eggs, meat, and/or feathers. These most typically are members of the superorder Galloanserae , especially the order Galliformes and the family Anatidae , commonly known as "waterfowl"...
industry according to the nondelegation doctrine
Nondelegation doctrine
The doctrine of nondelegation describes the theory that one branch of government must not authorize another entity to exercise the power or function which it is constitutionally authorized to exercise itself. It is explicit or implicit in all written constitutions that impose a strict structural...
and as an invalid use of Congress's power under the commerce clause
Commerce Clause
The Commerce Clause is an enumerated power listed in the United States Constitution . The clause states that the United States Congress shall have power "To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes." Courts and commentators have tended to...
. This was a unanimous decision that rendered the National Industrial Recovery Act
National Industrial Recovery Act
The National Industrial Recovery Act , officially known as the Act of June 16, 1933 The National Industrial Recovery Act (NIRA), officially known as the Act of June 16, 1933 The National Industrial Recovery Act (NIRA), officially known as the Act of June 16, 1933 (Ch. 90, 48 Stat. 195, formerly...
unconstitutional, a main component of President
President
A president is a leader of an organization, company, trade union, university, or country.Etymologically, a president is one who presides, who sits in leadership...
Roosevelt
Franklin D. Roosevelt
Franklin Delano Roosevelt , also known by his initials, FDR, was the 32nd President of the United States and a central figure in world events during the mid-20th century, leading the United States during a time of worldwide economic crisis and world war...
's New Deal
New Deal
The New Deal was a series of economic programs implemented in the United States between 1933 and 1936. They were passed by the U.S. Congress during the first term of President Franklin D. Roosevelt. The programs were Roosevelt's responses to the Great Depression, and focused on what historians call...
.
Background
The regulations at issue were promulgated under the authority of the National Industrial Recovery ActNational Industrial Recovery Act
The National Industrial Recovery Act , officially known as the Act of June 16, 1933 The National Industrial Recovery Act (NIRA), officially known as the Act of June 16, 1933 The National Industrial Recovery Act (NIRA), officially known as the Act of June 16, 1933 (Ch. 90, 48 Stat. 195, formerly...
(NIRA) of 1933. These included price
Price fixing
Price fixing is an agreement between participants on the same side in a market to buy or sell a product, service, or commodity only at a fixed price, or maintain the market conditions such that the price is maintained at a given level by controlling supply and demand...
and wage fixing, as well as requirements regarding the sale of whole chickens, including unhealthy ones. The government claimed the Schechters sold sick poultry, which has led to the case becoming known as "the sick chicken
Chicken
The chicken is a domesticated fowl, a subspecies of the Red Junglefowl. As one of the most common and widespread domestic animals, and with a population of more than 24 billion in 2003, there are more chickens in the world than any other species of bird...
case". Also encompassed in the decision were NIRA provisions regarding maximum work hours and a right of unions to organize. The ruling was one of a series which overturned elements of President Franklin D. Roosevelt's New Deal
New Deal
The New Deal was a series of economic programs implemented in the United States between 1933 and 1936. They were passed by the U.S. Congress during the first term of President Franklin D. Roosevelt. The programs were Roosevelt's responses to the Great Depression, and focused on what historians call...
legislation between January 1935 and January 1936, until the Court's intolerance of economic regulations shifted with West Coast Hotel Co. v. Parrish
West Coast Hotel Co. v. Parrish
West Coast Hotel Co. v. Parrish, , was a decision by the United States Supreme Court upholding the constitutionality of minimum wage legislation enacted by the State of Washington, overturning an earlier decision in Adkins v. Children's Hospital,...
, 300 U.S. 379 (1937).
The National Industrial Recovery Act allowed local codes for trade to be written by private trade and industrial groups. The President could choose to give some codes the force of law. The Supreme Court's opposition to an active federal interference in the local economy caused Roosevelt to attempt to pack the Court
Judiciary Reorganization Bill of 1937
The Judicial Procedures Reform Bill of 1937, frequently called the court-packing plan, was a legislative initiative proposed by U.S. President Franklin Roosevelt to add more justices to the U.S. Supreme Court. Roosevelt's purpose was to obtain favorable rulings regarding New Deal legislation that...
with judges that were in favor of the New Deal.
There were originally sixty charges against Schechter Poultry, which were reduced to eighteen charges plus charges of conspiracy by the time the case was heard by the U. S. Supreme Court.
Among the eighteen charges against Schechter Poultry were "the sale to a butcher
Butcher
A butcher is a person who may slaughter animals, dress their flesh, sell their meat or any combination of these three tasks. They may prepare standard cuts of meat, poultry, fish and shellfish for sale in retail or wholesale food establishments...
of an unfit chicken" and the sale of two uninspected chickens.
Schechter was located at "Schechter Live Poultry Market", 991 Rockaway Avenue
Rockaway Avenue
Rockaway Avenue is a street located in Brooklyn, New York. It is also the name of two current New York City Subway stations and one closed station:*Rockaway Avenue , serving the trains...
, Brooklyn
Brooklyn
Brooklyn is the most populous of New York City's five boroughs, with nearly 2.6 million residents, and the second-largest in area. Since 1896, Brooklyn has had the same boundaries as Kings County, which is now the most populous county in New York State and the second-most densely populated...
, New York. This location has been demolished. Also, "A.L.A. Schechter Poultry Corporation" was located at 858 East 52nd Street, Brooklyn, New York. No building at that location exists as of 2011, the closest building to this site is 860 East 52nd Street.
Decision
Chief JusticeChief Justice of the United States
The Chief Justice of the United States is the head of the United States federal court system and the chief judge of the Supreme Court of the United States. The Chief Justice is one of nine Supreme Court justices; the other eight are the Associate Justices of the Supreme Court of the United States...
Hughes
Charles Evans Hughes
Charles Evans Hughes, Sr. was an American statesman, lawyer and Republican politician from New York. He served as the 36th Governor of New York , Associate Justice of the Supreme Court of the United States , United States Secretary of State , a judge on the Court of International Justice , and...
wrote for a unanimous Court in invalidating the industrial "codes of fair competition" which the NIRA
National Industrial Recovery Act
The National Industrial Recovery Act , officially known as the Act of June 16, 1933 The National Industrial Recovery Act (NIRA), officially known as the Act of June 16, 1933 The National Industrial Recovery Act (NIRA), officially known as the Act of June 16, 1933 (Ch. 90, 48 Stat. 195, formerly...
enabled the President
President of the United States
The President of the United States of America is the head of state and head of government of the United States. The president leads the executive branch of the federal government and is the commander-in-chief of the United States Armed Forces....
to issue. The Court held that the codes violated the constitutional
United States Constitution
The Constitution of the United States is the supreme law of the United States of America. It is the framework for the organization of the United States government and for the relationship of the federal government with the states, citizens, and all people within the United States.The first three...
separation of powers
Separation of powers
The separation of powers, often imprecisely used interchangeably with the trias politica principle, is a model for the governance of a state. The model was first developed in ancient Greece and came into widespread use by the Roman Republic as part of the unmodified Constitution of the Roman Republic...
as an impermissible delegation of legislative power to the executive branch. The Court also held that the NIRA provisions were in excess of congressional
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
power under the Commerce Clause
Commerce Clause
The Commerce Clause is an enumerated power listed in the United States Constitution . The clause states that the United States Congress shall have power "To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes." Courts and commentators have tended to...
.
The Court distinguished between direct effects on interstate commerce, which Congress could lawfully regulate, and indirect, which were purely matters of state law. Though the raising and sale of poultry
Poultry
Poultry are domesticated birds kept by humans for the purpose of producing eggs, meat, and/or feathers. These most typically are members of the superorder Galloanserae , especially the order Galliformes and the family Anatidae , commonly known as "waterfowl"...
was an interstate industry, the Court found that the "stream of interstate commerce" had stopped in this case—Schechter's slaughterhouses bought chickens almost exclusively from intrastate wholesalers and sold completely exclusively to intrastate buyers. Any interstate effect of Schechter was indirect, and therefore beyond federal reach.
Though many considered the NIRA a "dead statute" at this point in the New Deal scheme, the Court used its invalidation as an opportunity to affirm constitutional limits on congressional power, for fear that it could otherwise reach virtually anything that could be said to "affect" interstate commerce and intrude on many areas of legitimate state power.
Justice Cardozo's concurring opinion clarified that a spectrum approach to direct and indirect effects is preferable to a strict dichotomy. Cardozo felt that in this case, Schechter was simply too small a player to be relevant to interstate commerce.
This traditional reading of the Commerce Clause was later disavowed by the Court, which after threats from Roosevelt began to read congressional power more expansively in this area, in cases such as National Labor Relations Board v. Jones & Laughlin Steel Corporation
National Labor Relations Board v. Jones & Laughlin Steel Corporation
National Labor Relations Board v. Jones & Laughlin Steel Corporation, 301 U.S. 1 , was a United States Supreme Court case that declared that the National Labor Relations Act of 1935 was constitutional...
(1937). However, more recent cases such as United States v. Lopez
United States v. Lopez
United States v. Alfonso Lopez, Jr., was the first United States Supreme Court case since the New Deal to set limits to Congress's power under the Commerce Clause of the United States Constitution.-Background:...
, 514 U.S. 549 (1995) perhaps signal a growing inclination in the Court to once again affirm limits on its scope.
Reaction
Speaking to aides of Roosevelt, Justice Louis BrandeisLouis Brandeis
Louis Dembitz Brandeis ; November 13, 1856 – October 5, 1941) was an Associate Justice on the Supreme Court of the United States from 1916 to 1939.He was born in Louisville, Kentucky, to Jewish immigrant parents who raised him in a secular mode...
remarked that, “This is the end of this business of centralization, and I want you to go back and tell the president that we're not going to let this government centralize everything."
See also
- Panama Refining Co. v. RyanPanama Refining Co. v. RyanPanama Refining Co. v. Ryan, 293 U.S. 388 , also known as the Hot Oil case, was a case in which the United States Supreme Court ruled unconstitutional the Roosevelt Administration's prohibition of interstate and foreign trade in petroleum goods produced in excess of state quotas—the "hot oil"...
- Louisville Joint Stock Land Bank v. RadfordLouisville Joint Stock Land Bank v. RadfordLouisville Joint Stock Land Bank v. Radford, 295 U.S. 555 , was a decision by the Supreme Court of the United States that ruled the Frazier-Lemke Act unconstitutional in violation of the Fifth Amendment...
External links
- Case Brief: http://quimbee.com/cases/706870