Evening star., 1935-05-28
THE text Of the supreme Courts
decision holding the National
/ Recovery Administration un-

4. L. A. sohechter Poultry Corp.
Schechter Live Poultry Market. Jo-
seph Schechter, Martin Schechter.
Alex Schechter and Aaron Schech-
ter, Petitioners.
The United States of America.
The United States of America,
Petitioner,
S64 VS..
A. L. A. Schechter Poultry Corp,
Martin Schechter, Alex Schechter
and Aaron Schechter.
On writs of Certiorari to the United
States Circuit Court of Appeals
for the Second Circuit.
Mr.. Chief Justice Hughes delivered
the opinion of the court.
Petitioners in No. 854 were convicted
IN the District Court of the United
States for the eastern district of New
York on ls counts of an indictment
charging violations of what is known
as the live poultry code. and on an
commit such violations. BY demurrer
to the indictment and appropriate mo-
tions on the trial, the defendants con-
tended % that the code had been
adopted pursuant to an unconstitu-
tional delegation by Congress of leg
islative power; (2) that, 1t attempted
to regulate intrastate transactions
which lay outside the authority of
Congress, and 49, that in certain pro-
visions it was repugnant to the due
process clause OF the fifth amend
lnent.
The Circuit Court of Appeals sus-
tained The conviction on the con-
spiracy count and on 16 counts for
violation OF the code, but reversed
the conviction on two counts which
charged violations of requirements as
to minimum wages and maximum
hours of labor, as these were not
deemed to be within the congressional
power Of regulation. On the respec-
tive applications of the defendants
lNo. 85N and Of the Government mo.
e6H this court granted writs Of GER
tiorari, April Is, 1895.
as Per Cent Of Poultry
Shipped From Other States.
New York City Is the largest live
poultry market in the United States.
Ninety-six per cent of the live poultry
there marketed comes from other
States. Three-fourths of this amount
arrives by rail and is consigned to
commission men or receivers. Most of
these freight shipments (about IS per
cent? come in at the Manhattan
terminal .of the New York Central
Railroad and the remainder at one
of the four terminals in New Jersey,
serving New York City. The commits
sion men transact by far the greater
part Of the business on commission
basis. representing the shippers as
agents and remitting to them the pro-
ceeds of sale. less commissions, freight
and handling charges. Otherwise they
buy for their own account. They sell
to slaughter-house operators who are
also called market men.
The defendants are slaughter house
operators of the latter class A. L. A.
Schechter Poultry Corp. and Schechter
Live Poultry Market are corporations,
conducting wholesale poultry slaugh-
ter-house markets in Brooklyn, New
York City Joseph Schechter operated
the latter corporation and also guar
anteed the credits Of the former COR
poration which was operated by Mar
tin, Alex and Aaron Schechter. De-
PENDANTS ordinarily purchase their live
poultry from commission men at the
West Washington Market in New York
City or at the railroad terminals serv-
ing the city, but occasionally they pur.
chase from commission men In Phil
sdelphia. They buy the poultry for
slaughter and resale. After the poul-
try is trucked to their slaughter-house
markets in Brooklyn, it is there sold.
usually within "a hours, to retail
poultry dealers and butchers who sell
directly to consumers. The poultry
purchased from defendants is imme-
diately slaughtered, prior to delivery.
by shochtim in defendants employ,
Defendants do not sell poultry in in
terstate commerce.
Authority for Setting Up
Codes Is Cited In Decision.
The live poultry code was promul-
gated under section Of the National
industrial recovery act. That section
authorizes the President to approve
"codes of fair competition" Such a
code may be approved for a trade or
industry, upon application by one or
more trade or industrial associations
or groups, if the President finds %
that such associations or groups "im-
pose no inequitable restrictions on ad-
mission to membership therein and
are truly representative" and CD that
such codes are not designed Ito pro-
mote monopolies or to eliminate or
Cypress small enterprises, and will not
operate to discriminate against them,
and will tend to effectuate the policy"
Of title I Of the act. Such codes shall
not permit monopolies of monopolistic
practices" AS a condition of his ap-
proval, the President may impose
such conditions Gncluding require
ments for the making of reports and
the keeping Of accounts) for the pro-
lection of consumers, competitors,
employees and others. and in further
ance Of the public interest, and may
provide such exceptions to and ex-
emptions from the provisions of such
code as the President in his discretion
deems necessary to effectuate the pol
icy herein declared" Where such q
code has not been approved. the Pres
ident may prescribe one, either on his
own motion or on complaint. Viola
ton of any provision of a code $50 ap-
proved or prescribed) "in any trans
action in or affecting interstate or
Foreign commerce" Is made q miSde-
meanor punishable by q fine of not
more than $500 for each offense. and
each day the violation continues Is to
be deemed a separate offense.
The live poultry code was approved
by the President on April IS, 1884.
Its divisions indicate its nature and
scope. The code has eight articles
entitled Cd purposes. ca definitions,
go hours. 90 wages. (5) general la
bor provisions, 90 administration, ca
trade practice provisions and 90 gen.
eral
The dec1a rad r,,rroea 10 U+o o~..I