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A.L.A. Schechter Poultry Corp. v. United States | 295 U.S. 495 (1935)
The country was on the brink of economic collapse during the Great Depression. As part of the New Deal, Congress and the president responded with sweeping new legislative and regulatory measures seeking to reverse the economy’s course. Those measures greatly expanded federal authority. But were they constitutional? The United States Supreme Court addressed the constitutionality of one of the main pieces of New Deal legislation in A.L.A. Schechter Poultry Corp. versus United States.
Joseph Schechter and his three brothers owned and operated a chicken slaughterhouse and also sold processed chickens on the wholesale market. They had two incorporated businesses, A. L. A. Schechter Poultry Corporation and Schechter Live Poultry Market, Inc., in Brooklyn, New York.
A federal grand jury charged the Schechter brothers and their two corporations with various violations of an executive order issued pursuant to the National Industrial Recovery Act of 1933. The alleged violations included unfair business practices and violations of provisions governing minimum wage and working hours. The brothers challenged the constitutionality of the act as both improperly delegating legislative authority to the executive branch and exceeding Congress’s authority to regulate interstate commerce. A jury convicted the brothers and their corporations of multiple offenses.
On appeal, the United States Court of Appeals for the Second Circuit affirmed some of the convictions but reversed others.
Both the Schechters and their corporations, as well as the United States, successfully petitioned the United States Supreme Court to review the case.
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