A.L.A. Schechter Poultry Corporation and Schechter Live Poultry Market, along with individual operators Joseph, Martin, Alex, and Aaron Schechter, operated wholesale poultry slaughterhouse markets in Brooklyn, New York City. They purchased live poultry from commission men at the West Washington Market in New York City or at railroad terminals serving the city, where ninety-six percent of the poultry had arrived by rail from other states. The poultry was trucked to the defendants' slaughterhouses, slaughtered by schochtim employees within twenty-four hours, and sold to local retail dealers and butchers who sold directly to consumers in New York City and surrounding counties.
The Live Poultry Code was proposed by the New York Live Poultry Chamber of Commerce and approved by President Roosevelt on April 13, 1934, under section 3 of the National Industrial Recovery Act. The Code set rules for the live poultry industry in the New York metropolitan area covering maximum work hours of forty per week, minimum wages of fifty cents per hour, a minimum number of employees graduated by sales volume, straight killing requirements that prohibited customer selection of individual birds from coops, sales only to licensed dealers, verified weekly price and volume reports, and maintenance of complete books and records.
An indictment in the District Court for the Eastern District of New York charged the defendants with one count of conspiracy and twenty-nine counts of Code violations, including sales below minimum prices, sales to unlicensed dealers, failure to file accurate daily reports, sales of unfit poultry, permitting customer selections from coops, failure to employ the required number of workers, failure to pay minimum wages or overtime, and failure to pay the code fee. The defendants demurred on constitutional grounds, pleaded not guilty after the demurrer was overruled, and moved to dismiss at trial; the government introduced evidence of violations while the defendants presented none.
The jury convicted on all counts. The Circuit Court of Appeals sustained the conviction on the conspiracy count and on sixteen counts for violation of the Code, but reversed the conviction on two counts which charged violation of requirements as to minimum wages and maximum hours of labor. The Supreme Court granted writs of certiorari on April 15, 1935, in both the defendants' appeal (No. 854) and the government's cross-appeal (No. 864), and heard the cases together on May 2 and 3, 1935.
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