RESPONDENT: Carter Coal Company
DOCKET NO.: 636
DECIDED BY: Hughes Court (1932-1937)
ARGUED: Mar 11, 1936 / Mar 12, 1936
DECIDED: May 18, 1936
Facts of the case
In 1935, Congress enacted the Bituminous Coal Conservation Act, also known as the Guffey Coal Act. The Act regulated prices, minimum wages, maximum hours, and "fair practices" of the coal industry. Although compliance was voluntary, tax refunds were established as incentives to abide by the regulations. Carter, a stockholder, brought suit against his own company in an attempt to keep it from paying the tax for noncompliance. This case was decided together with R.C. Tway Coal Co. v. Clark, R.C. Tway Coal Co. v. Glenn, and Halvering v. Carter.
Did the Bituminous Coal Conservation Act of 1935 exceed congressional powers under the Commerce Clause?