The Sick Chicken Case Schechter vs. U.S.

Background Information Schechter Live Poultry Market, Inc. Brooklyn, New York Had to follow federal regulations when they joined the N.R.A. 1933 the N.R.A becomes criticized for constitutionality of the program

Facts on the N.R.A The National Recovery Administration Hugh S. Johnson was the administrator In the Re-employment Agreement the N.R.A was able to demolish child labor acts, set maximum hour work weeks, and set minimum wages. Was supported by the National Industrial Recovery Act

Summary Main question was “under the Constitution can the government regulate business in an effort to restore prosperity?’’ (Text 235) Past case such as Muller v. Oregon the Court was willing to give more control to the government Muller v. Oregon

Summary II Public officials thought they could regulate the poultry business due to the Interstate Commerce Clause The Schechter brothers knew that their chickens were not transported across state lines, therefore they felt that their activities were limited to Intrastate Commerce. As a result, the government could not regulate their business activities.

Summary III In the majority decision Chief Justice Hughes pointed out that “while emergency does not create power, emergency may furnish the occasion for the exercise of power.” this case involved state legislation The Southern Lumber case (United States v. Belcher) was dropped due to Justice Cardozo’s dissent. Court held that Congress had unconstitutionally delegated too much discretionary power to the President. Justice Benjamin N. Cardozo

Summary IV “The Government won in the circuit court of appeals that involved the New York Live poultry code. The fate of the N.R.A, the degree of power the government had would be decided upon how the Supreme Court would look upon the right of the federal government to punish the Brooklyn poultry dealers who had among other offenses, sold a sick chicken” (text 243)

Summary V The Schechter brothers were charged with having violated the wages and hours and several of the trade practice provisions of the code in order to beat their prices below those of their rivals. The main events in question are from witnesses that testified that the Schechter’s had sold thousands of pounds of diseased chickens at four to eight cents per pound below market price.

Summary VI The Schechter brothers were found guilty on seventeen counts, although the court did reverse the conviction on the wages and hours count, but upheld unfair trade practices counts. Their punishment was a brief jail sentence and fine of $7,425.

The Tie to Interstate Commerce The evidence was presented to prove that the live poultry market price in New York set the price for poultry throughout the U.S. With the trade and labor practices in question the poultry market in New York lowered their prices, causing a drop in prices nationwide.

Fact of the Schechter Case Argued before the Supreme Court May 2 & 3 1935. Lawyer’s for the Schechter’s Joseph Heller, with help form Frederick Wood Frederick help prove that the chickens had come to rest and were no longer part of interstate traffic. The “sick chicken” was egg-bound and earlier had been passed by a government inspector. Decision day came on Monday May 27th.

Opinion from the Court The court decided in the Schechter case that due to the fact that the chickens had come to rest it was not a case of interstate commerce so the government could not put regulations on their chickens. A. L. A. Schechter Poultry Corp. v. United States Chief Justice Charles E. Hughes

Results of the Case Richberg announced “ this decision of the Supreme Court makes all codes of fair competition unenforceable as a matter of law.” As a result, he gave orders to suspend immediately all enforcements of NRA codes. FDR: “Does this decision mean that the U.S. Government has no control over any national economic problem. Wagner act was put in place to help keep the useful aspects of the NRA Chief Justice Hughes and Justice Roberts leave conservative wing of the court and move to the liberal side.