Schechter Poultry Co. v. U.S. Schechter Poultry Co. v. U.S. (1935)(1935)

BackgroundBackground New Deal programs established by FDR New Deal programs established by FDR

the National Industrial Recovery Act the National Industrial Recovery Act (NIRA) ,authorized the President to set (NIRA) ,authorized the President to set “codes of fair competition” to regulate “codes of fair competition” to regulate certain areas of interstate commerce.certain areas of interstate commerce.

The Schechter Poultry Corp. slaughtered The Schechter Poultry Corp. slaughtered and sold chickens only in NY State. and sold chickens only in NY State. Schechter was convicted for disobeying Schechter was convicted for disobeying the “live poultry code” when he the “live poultry code” when he allegedly failed to pay minimum wage allegedly failed to pay minimum wage requirements, sold unfit, un-inspected requirements, sold unfit, un-inspected “sick” chickens, and made false reports“sick” chickens, and made false reports

Constitutional IssueConstitutional Issue Was the NIRA, that gave the President Was the NIRA, that gave the President

the authority to regulate certain aspects the authority to regulate certain aspects of commerce during the Depression, an of commerce during the Depression, an unconstitutional delegation of unconstitutional delegation of presidential power?presidential power?

Schechter Poultry v. U.S.Schechter Poultry v. U.S. DecisionDecision

The Supreme Court ruled that the delegation of The Supreme Court ruled that the delegation of power made by the NIRA was unconstitutional power made by the NIRA was unconstitutional because it gave the executive branch legislative because it gave the executive branch legislative powers.powers.

The NIRA was declared unconstitutional The NIRA was declared unconstitutional because it exceeded the commerce power that because it exceeded the commerce power that had been given to Congress by the Constitution.had been given to Congress by the Constitution.

ImportanceImportance A major New Deal law was declared A major New Deal law was declared

unconstitutional. FDR was angry that the unconstitutional. FDR was angry that the Supreme Court judges were “in the days of the Supreme Court judges were “in the days of the horse & buggy” when the rest of the country was horse & buggy” when the rest of the country was “in the age of the automobile”“in the age of the automobile”

United States v. ButlerUnited States v. Butler(1936)(1936)

BackgroundBackground AAA gave subsidies AAA gave subsidies

to farmers not to to farmers not to grow certain crops; grow certain crops; Money to pay Money to pay farmers came from farmers came from tax on processorstax on processors

Cotton processors Cotton processors challenged claiming challenged claiming gov’t. couldn’t tax gov’t. couldn’t tax processors to benefit processors to benefit farmersfarmers

United States v. ButlerUnited States v. Butler Constitutional IssueConstitutional Issue

Is the AAA a proper use of Congressional power Is the AAA a proper use of Congressional power to tax?to tax?

DecisionDecision AAA is unconstitutionalAAA is unconstitutional Agriculture defined as INTRA-state commerce, Agriculture defined as INTRA-state commerce,

not INTER-state regulated by national gov’t.not INTER-state regulated by national gov’t. ImportanceImportance

Setback for New DealSetback for New Deal Worsened relationship between President and Worsened relationship between President and

Supreme CourtSupreme Court

FDR’s Supreme Court FDR’s Supreme Court ReformReform

““Packing the Supreme Court”Packing the Supreme Court”

FDR’s plan to “reform” the CourtFDR’s plan to “reform” the Court Add one judge for each judge over Add one judge for each judge over

age 70 because Supreme Court age 70 because Supreme Court judges are so overworkedjudges are so overworked

Would increase number of judges Would increase number of judges from 9 to 15from 9 to 15

If FDR could add 6 additional judges, If FDR could add 6 additional judges, he could swing the decisions in favor he could swing the decisions in favor of the New Deal programsof the New Deal programs

Opposition to Court ReformOpposition to Court Reform Upset checks and balances! Upset checks and balances! Separation of powers in jeopardy?Separation of powers in jeopardy?