Carter v. Carter Coal Co.

1936

Venue: SCOTUS

Facts: The Guffey Coal act sets up a Bituminous Coal Commission, controlling working conditions in coal mines. It taxes code sold in compliance with the code at one rate and non-compliant code at a 90% higher rate (15%).

Posture: A partially collusive suit is formed to get this going.

Issue: Same as in Schechter: can congress do this sort of thing?

Holding: No, once again.

Rule: Congress can't enact laws-- even for the general welfare-- in areas over which they haven't been delegated power in the constitution.

Reasoning: States can deal with their own internal issues. The relationship between an individual's coal mining activities and interstate commerce is quite remote, and Congress can't just assert that because everyone uses coal, they have authority over all coal production.

Dicta: We already dealt with this in Schechter.