The Constitution of the United States of America: Analysis and Interpretation: Annotations of Cases Decided by the Supreme Court of the United States to June 30, 1952
History
The Constitution of the United States of America: Analysis and Interpretation: Annotations of Cases Decided by the Supreme Court of the United States to June 30, 1952
Constitutional law -- United States; Constitutions -- United States
In the case of Schechter Corp. _v._ United States,[445] one of these
codes, the Live Poultry Code, was pronounced unconstitutional. Although
it was conceded that practically all poultry handled by the Schechters
came from outside the State, and hence via interstate commerce, the
Court held, nevertheless, that once the chickens came to rest in the
Schechters' wholesale market interstate commerce in them ceased. The
act, however, also purported to govern business activities which
"affected" interstate commerce. This, Chief Justice Hughes held, must be
taken to mean "directly" affect such commerce: "the distinction between
direct and indirect effects of intrastate transactions upon interstate
commerce must be recognized as a fundamental one, essential to the
maintenance of our constitutional system. Otherwise, * * *, there would
be virtually no limit to the federal power and for all practical
purposes we should have a completely centralized government."[446] In
short, the case was governed by the ideology of the Sugar Trust Case,
which was not mentioned in the Court's opinion.[447]
THE AGRICULTURAL ADJUSTMENT ACT
Congress' second attempt to combat the Depression comprised the
Agricultural Adjustment Act of 1933.[448] As is pointed out elsewhere
the measure was set aside as an attempt to regulate production, a
subject which was held to be "prohibited" to the United States by
Amendment X.[449] _See_ pp. 917-918.
THE BITUMINOUS COAL CONSERVATION ACT
The third measure to be disallowed was the Guffey-Snyder Bituminous Coal
Conservation Act of 1935.[450] The statute created machinery for the
regulation of the price of soft coal, both that sold in interstate
commerce and that sold "locally," and other machinery for the regulation
of hours of labor and wages in the mines. The clauses of the act dealing
with these two different matters were declared by the act itself to be
separable so that the invalidity of the one set would not affect the
validity of the other; but this strategy was ineffectual. A majority of
the Court, speaking by Justice Sutherland held that the act constituted
one connected scheme of regulation which, inasmuch as it invaded the
reserved powers of the States over conditions of employment in
productive industry, was violative of the Constitution and void.[451]
Justice Sutherland's opinion set out from Chief Justice Hughes's
assertion in the Schechter Case of the "fundamental" character of the
distinction between "direct" and "indirect" effects; that is to say,
from the doctrine of the Sugar Trust Case. It then proceeded: "Much
stress is put upon the evils which come from the struggle between
employers and employees over the matter of wages, working conditions,
the right of collective bargaining, etc., and the resulting strikes,
curtailment and irregularity of production and effect on prices; and it
is insisted that interstate commerce is greatly affected thereby. But,
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