Schechter Poultry Co. v. U.S. (1935) Background New Deal programs established by FDR the National Industrial Recovery Act (NIRA),authorized the President to set “codes of fair competition” to regulate certain areas of interstate commerce. The Schechter Poultry Corp. slaughtered and sold chickens only in NY State. Schechter was convicted for disobeying the “live poultry code” when he allegedly failed to pay minimum wage requirements, sold unfit, un- inspected “sick” chickens, and made false reports Constitutional Issue Was the NIRA, that gave the President the authority to regulate certain aspects of commerce during the Depression, an unconstitutional delegation of presidential power?

Schechter Poultry v. U.S. Decision Decision The Supreme Court ruled that the delegation of power made by the NIRA was unconstitutional because it gave the executive branch legislative powers. The Supreme Court ruled that the delegation of power made by the NIRA was unconstitutional because it gave the executive branch legislative powers. The NIRA was declared unconstitutional because it exceeded the commerce power that had been given to Congress by the Constitution. The NIRA was declared unconstitutional because it exceeded the commerce power that had been given to Congress by the Constitution. Importance Importance A major New Deal law was declared unconstitutional. FDR was angry that the Supreme Court judges were “in the days of the horse & buggy” when the rest of the country was “in the age of the automobile” A major New Deal law was declared unconstitutional. FDR was angry that the Supreme Court judges were “in the days of the horse & buggy” when the rest of the country was “in the age of the automobile”

United States v. Butler (1936) Background AAA gave subsidies to farmers not to grow certain crops; Money to pay farmers came from tax on processors Cotton processors challenged claiming gov’t. couldn’t tax processors to benefit farmers

United States v. Butler Constitutional Issue Constitutional Issue Is the AAA a proper use of Congressional power to tax? Is the AAA a proper use of Congressional power to tax? Decision Decision AAA is unconstitutional AAA is unconstitutional Agriculture defined as INTRA-state commerce, not INTER-state regulated by national gov’t. Agriculture defined as INTRA-state commerce, not INTER-state regulated by national gov’t. Importance Importance Setback for New Deal Setback for New Deal Worsened relationship between President and Supreme Court Worsened relationship between President and Supreme Court

FDR’s Supreme Court Reform “Packing the Supreme Court”

Supreme Court declared key New Deal Legislation Unconstitutional NRA NRA Codes of competition were set by executive branch not legislative, violation of separation of powers Codes of competition were set by executive branch not legislative, violation of separation of powers AAA AAA Unfair to tax one group to benefit another Unfair to tax one group to benefit another Agriculture is INTRA-state commerce Agriculture is INTRA-state commerce

FDR’s plan to “reform” the Court Add one judge for each judge over age 70 because Supreme Court judges are so overworked Add one judge for each judge over age 70 because Supreme Court judges are so overworked Would increase number of judges from 9 to 15 Would increase number of judges from 9 to 15 If FDR could add 6 additional judges, he could swing the decisions in favor of the New Deal programs If FDR could add 6 additional judges, he could swing the decisions in favor of the New Deal programs

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