Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-05-27
Sections of Act
Held Without
Precedent.
POULTRY CASE
POINT ATISSUE
Right to Make Law
Denied Business
Groups.
Bv the Associated Press.

BY the Associated Press.
N. R. A. codes were wiped out
today by the Supreme Court.
The decision was unanimous.
The court ruled unconStitu-
tional section 3 of the industrial
recovery act, under which Con-
gresS delegated to the President
authority to make codes.
1t held this authority had not
been sufficiently limited or de-
fined. The tribunal also ruled
that where transactions have
merely an indirect effect on in
terState commerce the control
rests with the States"
Poultry Case Is Issue.
Chief Justice Hughes read the de-
cision to a closely attentive court
room. In detail, he discussed condi-
lions which controlled the making OF
codes-leaving the President free, he
said. to adopt such measures as he
thought for the public welfare.
There had never before been such
delegation of authority, he empha-
sized
The court made its ruling in the
Schechter poultry case from New
York, selected by the Government to
test it's power to regulate wages and
hours of workers through the more
than 500 N. r. A. codes of fair compe-
tition.
With Donald r. Richberg, N. r. A.
chief who argued the case sitting 10
feet before him in a packed court
room. Mr.. Hughes held 96 per cent
of the live poultry marketed in New
York came from other States
The defendants are slaughter house
operators" he added They do not
sell poultry in interstate commerce.
The Government. Mr.. Hughes said,
stressed the grave national crisis
confronting the country.
No Power Created.
Extraordinary conditions may call
for extraordinary remedies" he said,
but the argument stops short of at
tempting to defend action outside OF
constitutional authority.
Extraordinary conditions do not
create constitutional power"
The court declared Congress had
not provided sufficient restrictions
and had not laid down proper rules
to guide the President in approving
codes. In the oil cases, in which the
court held Congress had given the
President too much power to regu-
late transportation of oil. the Chief
Justice held the range of discretion
was the important thing.
He said Congress had set up the
Trade Commission to determine what
are unfair methods of competition
and to regulate them. Section one of
the recovery act, he declared. was
much broader. Adding section three
authorized machinery for carrying out
the purposes of section one.
Authority Delegation Hit.
Mr. Hughes said this authorized
new and controlling prohibitions
to bring about rehabilitation of indus
try and correction of abuses.
He asked if Congress could delegate
to business groups the power to enact
laws they deemed advisable. The
answer was no, he asserted.
Congress- Mr.. Hughes emphasized,
cannot delegate to the President the
right to do whatever he thinks desir-
able. He said Congress had not speci-
fed adequate restraints on the Presl-
dents power. and held:
The President in approving code
may add TO or subtract from the pro-
visions. Section three is without
precedent. 1t sets up no standards
aside from general aims
Raising the question of whether the
poultry transactions we're in inter-
state commerce, Hughes said firmly
they we're not.
Affect Held Only Indirect.
As to whether interstate commerce
was affected" Hughes said there was
O distinction between direct and in
direct effects.
Where the transactions are merely
indirect on interstate commerce the
control rests with the States" Hughes
ruled.
Chairman Harrison of the Senate
Finance Committee, handling N. R. A.
legislation, came in while Hughes was
reading the decision. Richberg. al
ready present. listened intently with
his chin resting on his hand.
The small Supreme Court room was
crowded to capacity as. Hughes read
rapidly. Senators and others promi-
nent in Government affairs were
among those present. Many were
forced to stand in the rear of the
court and many were unable to. gain
admission.
If the Federal Government had
power to determine wages and hours
of employees in internal commerce OF
the States, Hughes said, Government
could control other elements Of in
dustry. It had no such authority,
he added.
House Group Votes Extension.
The decision came at time when
the House Committee concerned had
agreed tentatively to recommend ex-
tension of the N. r. A. for two years,
inviting conflict with the Senate over
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