Evening star., 1938-04-25
BY JOHN H. CLINE.

BY JOHN H. CLINE.
Rendering the first decision of this
term that might be considered a re-
buke to the New Deal, the Supreme
Court today set aside an order by
Secretary OF Agriculture Wallace pre-
scribing Kansas City stock yard rates
on the ground that the business men
affected by the order were not given a
fair and adequate hearing.
The court. in a 6-to-l opinion
said the question involved-the ade-
quacy Of administrative hearings
was OF great national importance in
view of the increasing tendency OF
Congress to delegate powers to execu-
tive agencies.
In an earlier decision the justices
upheld the constitutionality of the re.
vised Bankruptcy Act
The act was declared unconstitu.
tional by an earlier 5-to-4 decision but
the justices ruled today its constitu-
| tional defect had been cured by an
amendment adopted by Congress las,
year.
The division among the justices in
the Kansas City Stockyards cast
evoked comment, since Justice Bran
deis and Stone. listed among the lib
erals. sided with the majority against
Justice Black. who dissented. He did
not write dissenting opinion. Justices
Cardozo and Reed took no part in
the consideration Of the case.
Reverses District Court.
The decision, delivered by Chief JUS
tice Hughes, reversed the ruling of .
three Judge District Court, which had
upheld the validity Of the rates fixed
by the Secretary and had dismissed so
suits attacking them.
The Chief Justice pointed out that
prior to fixing of the rates. hearing
was held by employees of the Bureau
of Animal Husbandry. voluminous
record being compiled. However, the
rates were promulgated by the Sec
retary without giving the packers
affected by the order an opportunity
to answer or contest the findings OF
the departmental employees.
Holding that this failure violated
the stipulation by Congress that
fair and open hearing should be held
the Chief Justice said:
The part taken by the Secretary
himself in the departmental proceed.
ings is shown by his full and candle
testimony The evidence had beer
received before he took Office. HI
did not hear the oral argument. Thu
bulky record was placed upon hi!
desk and he dipped into it from tim'
to time to get its drift. He decided
that probably the essence of the evi
dence was contained in appellates
briefs. These. together with thu
transcript of the oral argument, HI
took home with him and read. H,
had several conferences with the SO.
licitor of the department and with
the officials in the Bureau Of Anima
Industry and discussed the proposed
finding
More Is Required.
I'm the light of this testimony there
Is no occasion to discuss the extent tt
which the Secretary examined the evi.
dence. and we agree with the Gov
ernment's contention that it was mo-
the function of the court to probe thu
mental processes of the Secretary ir
reaching his conclusions if he gave the
hearings which the law required.
The Secretary read the summary
presented by appellates' briefs and ht
conferred with his subordinates who
had sifted and analyzed the evidence
We assume that the Secretary sum.
ciently understood its purport. But 9
full hearing'-a fair and open hear.
ing-requires more than that. TIT
right to hearing embraces not only
the right to present evidence. but alst
reasonable opportunity to know tn.
claims of the opposing party and Il
meet them. The right to submit argu
ments implies that opportunity; other.
wise the right may be but a barrer
one.
Those who are brought into con
test with the Government in a quasi
judicial proceeding aimed at the con
troll of their activities are entitled t,
be fairly advised of what the Govern
ment proposes and to be heard upol
its proposals before it issues its fina
command"
Is Basic Necessity,
The Chief Justice commented tina
the question of giving a fair hearin,
goes to the very foundation of the ac
ton Of administrative agencies en-
trusted by the Congress with broas
control over activities which in thei
detail cannot be dealt with directly b,
the legislature. THE vast expansion
of this field Of administrative regula.
ton in response to the pressure O
social needs" he said, lis made possibl,
under our system by adherence to tn,
basic principles that the legislator,
shall appropriately determine the stan
dards Of administrative action ant
that in administrative proceedings O
. quasi-judicial character, the libert,
and property Of the citizen shall b,
protected by the rudimentary require.
ments Of fair play"
The Chief Justice concluded thai
''the maintenance Of proper standards
on the part Of administrative agencie!
in the performance Of their quasi.
judicial functions Is Of the highes
1see COITRTR pare A.I