More Forgotten Men

I hope that the Obama plans to resurrect the New Deal don’t include things like this:

As part of its legislation, the NRA had all kinds of detailed codes for individual industries, describing to the letter how firms must do their business. The Schechters fell under the “Code of Fair Competition for the Live Poultry Industry of the Metropolitan Area in and About the City of New York” (and you thought Atlas Shrugged was fiction….). Among the things the code prohibited was “straight killing” which meant that customers could buy a whole or half coop of chickens, but did not have the right to make any selection of particular birds (such individual selection was “straight killing”).

This last rule was in direct conflict with Kashrut laws, which also served as an informal health code in the Jewish community. As Shlaes points out, the phrase “glatt kosher” referred to the fact that the lungs of the animal were smooth (which is what “glatt” means) and therefore free of tuberculosis. Inspecting the lungs was part of the official process of conferring Kosher status on a butcher shop. Removing unhealthy animals from the stock was one of the core principles of keeping Kosher, and the rabbinical inspectors were fanatic about doing this. But so were customers. As Shlaes points out, individual customers, both retailers and their customers, had the right to refuse individual animals. This minimized the risk of an unhealthy animal getting through when both seller and buyer did such inspections. And it ensured that the kosher laws served as a health code, or perhaps something more like the Underwriters Laboratory or Good Housekeeping seal.

The Schechters, as you may have guessed, were targeted by the NRA enforcement crew. They were inspected repeatedly during the summer of 1934, which forced them to violate their own Kashrut practices, telling customers that they could not reject individual birds as keeping Kosher allowed. Not surprisingly, their deeply religious customer base began to dwindle. The constant inspection turned up a variety of violations, including allegations that they had, in fact, sold sick chickens (not surprising, if true, given that part of their own internal inspection process was negated by the NRA code itself!). They were also accused of “competing too hard” and keeping prices “too low.” Shlaes recounts a couple of hilarious exchanges between the government lawyers and the Schechters where the knowledge of the actor is much greater than the knowledge of the expert.

Eventually, the lower courts found them guilty of 60 different violations and they all served a little bit of jail time. But more important, the Schecters’ lawyer continued to appeal and the case made it all the way to the Supreme Court, where the Roosevelt Administration saw it as the perfect test case of the constitutionality of the NRA, and perhaps the whole New Deal. Coverage of the case, Shlaes shows, was highly tinged with the standard anti-Semitism of the time, especially because the Schechters were right out of Jewish central casting, being immigrants with their Eastern Eurpoean cadences and traditional Jewish dress. It was the Jewish rubes of Brooklyn against the high powered WASP lawyers of the northeast corridor.

Fortunately, they ultimately won, and if was in fact the first hit against the NRA by the SCOTUS (which eventually resulted in Roosevelt’s attempt to pack the court to get it to allow him to rule unopposed). But as the bloggist points out, it’s also a demonstration of the blindness of Jews to their own interests in continuing to support Democrats in general, and Roosevelt in particular. Marxists talk about the false consciousness of the proletariat, but this seems to be a much more clear-cut example.

3 thoughts on “More Forgotten Men”

  1. I hope “fair” competition doesn’t get a chance. These anticompetition measures were IMHO the worst things that the FDR administration did.

  2. >> They were also accused of “competing too hard” and keeping prices “too low.”

    Sounds like a charge commonly made against Walmart.

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