''Carter v. Carter Coal Company'', 298 U.S. 238 (1936), is a

United States Supreme Court The Supreme Court of the United States (SCOTUS) is the highest court in the federal judiciary of the United States. It has ultimate appellate jurisdiction over all U.S. federal court cases, and over state court cases that involve a point o ...

decision interpreting the

Commerce Clause The Commerce Clause describes an enumerated power listed in the United States Constitution ( Article I, Section 8, Clause 3). The clause states that the United States Congress shall have power "to regulate Commerce with foreign Nations, and amon ...

of the United States Constitution, which permits the

United States Congress The United States Congress is the legislature of the federal government of the United States. It is bicameral, composed of a lower body, the House of Representatives, and an upper body, the Senate. It meets in the U.S. Capitol in Washing ...

to "regulate Commerce... among the several States." Specifically, it analyzes the extent of Congress’ power, according to the Commerce Clause, looking at whether or not they have the right to regulate manufacturing.

Background

The Bituminous Coal Conservation Act was passed in 1935 and replaced the previous codes set forth by the

National Industry Recovery Act The National Industrial Recovery Act of 1933 (NIRA) was a US labor law and consumer law passed by the 73rd US Congress to authorize the president to regulate industry for fair wages and prices that would stimulate economic recovery. It also e ...

(NIRA). The new law established a commission, made up of coal miners, coal producers, and the public, to establish fair competition standards, production standards, wages, hours, and labor relations. All mines were required to pay a 15% tax on coal produced. Mines that complied with the Act would be refunded 90% of the 15% tax. James W. Carter was a bitter foe of the United Mine Workers; he was a shareholder of the Carter Coal Company of

McDowell County, West Virginia McDowell County is a county in the U.S. state of West Virginia. As of the 2020 census, the population was 19,111. Its county seat is Welch. McDowell County is the southernmost county in the state. It was created in 1858 by the Virginia Gener ...

and did not feel that the company should join the government program. The board of directors for the company thought that the company could not afford to pay the tax if it did not receive anything back. Carter sued the federal government and his own father who was also named ''Carter''. The plaintiff claimed that coal mining was not interstate commerce and so could not be regulated by Congress. The question was whether Congress, according to the

, has the power to regulate the coal mining industry.

Decision

Majority opinion

The Supreme Court majority ruled in favor of the plaintiff the younger Carter. The Supreme Court ruled 5-4 the Act was unconstitutional for the following reasons: *Just because a commodity is

manufactured Manufacturing is the creation or production of goods with the help of equipment, labor, machines, tools, and chemical or biological processing or formulation. It is the essence of secondary sector of the economy. The term may refer to a ran ...

or produced within a state and is intended for interstate commerce does not mean that its "production or manufacturing is subject to federal regulation under the commerce clause." *A commodity that is meant to be sold in interstate commerce is not considered to be part of interstate commerce "before the commencement of its movement from the state." *"Mining is not interstate commerce." It is a local business and is subject to local control and taxation. *The word "

commerce Commerce is the large-scale organized system of activities, functions, procedures and institutions directly and indirectly related to the exchange (buying and selling) of goods and services among two or more parties within local, regional, nation ...

" is equivalent to the phrase "intercourse for the purposes of trade" and the process of mining coal is not within that definition. *The labor board has powers over production, not commerce. That confirms the idea that production is a purely-local activity. *If the production of coal by a single person did not have a direct effect on interstate commerce, the production of coal by many people also could not have a direct effect on interstate commerce. *The evils that Congress sought to control were "all local evils over which the federal government has no

legislative A legislature is an assembly with the authority to make laws for a political entity such as a country or city. They are often contrasted with the executive and judicial powers of government. Laws enacted by legislatures are usually known ...

control." *"The federal regulatory power ceases when interstate commerce ends; and, the power does not attach until interstate commercial intercourse begins."

Dissenting opinions

The

Three Musketeers (Supreme Court) The "Three Musketeers" was the nickname given to three liberal members during the 1932–37 terms of the United States Supreme Court, who generally supported the New Deal agenda of President Franklin Delano Roosevelt. They were Justices Louis Bra ...

dissented. Justice Cardozo, dissenting, reasoned that the price-fixing provision of the Coal Conservation Act was constitutional because it had a direct effect on interstate trade. Justices Stone and Brandeis joined Cardozo's opinion. Chief Justice Hughes also wrote a separate opinion, agreeing with the other five justices that the Act's labor provision was unconstitutional because it was poorly drafted and did not fall within the jurisdiction of Congress to regulate interstate commerce. However, he mainly sided with Cardozo's opinion and noted that the Act's labor and marketing provisions were not dependent on each other. On April 12, 1937, however, Hughes, who wrote the majority opinion, later found the pro-labor

Wagner Act The National Labor Relations Act of 1935, also known as the Wagner Act, is a foundational statute of United States labor law that guarantees the right of private sector employees to organize into trade unions, engage in collective bargaining, and ...

constitutional in five separate cases and noted that it was skillfully drafted and specified interstate commerce regulations.http://holtz.org/Library/Social%20Science/History/Machine%20Age/Court-Packing%20and%20the%20Commerce%20Clause.htm

References

Epstein, Lee, and Thomas G. Walker. Constitutional Law for a Changing America: Institutional Powers and Constraints. 6th ed. Washington D.C.: CQ P, 2007. 448-450.

External links