J.W. Hampton Jr. & Co. v. United States
Citation: 276 U.S. 394 (U.S. Supreme Court, 1928)
Facts
Congress enacted the Tariff Act of 1922, which authorized the President to adjust tariff rates whenever he found that existing rates did not equalize the costs of production between domestic and foreign goods. J.W. Hampton challenged a presidential tariff increase on barium dioxide, arguing that Congress had unconstitutionally delegated its legislative power to set tariff rates to the executive branch.
Issue
Does a congressional delegation of authority to the executive branch violate the separation of powers when Congress provides a guiding standard to direct the executive’s discretion?
Holding
The Supreme Court upheld the delegation. Chief Justice Taft held that Congress may delegate legislative authority to the executive so long as Congress provides an “intelligible principle” to guide the exercise of that authority. The “equalization of costs of production” standard was sufficient to pass constitutional muster.
Rule
The non-delegation doctrine permits Congress to delegate broad authority to executive agencies provided the delegation includes an “intelligible principle” — a meaningful standard that constrains the agency’s discretion and allows courts to determine whether the agency has acted within the scope of the grant.
Significance
J.W. Hampton is the foundational non-delegation case and the source of the “intelligible principle” standard that governs delegation challenges to this day. It establishes that some delegation is constitutionally permissible and sets the baseline test. The case is contrasted with Panama Refining Co. v. Ryan and Schechter Poultry Corp. v. United States, the only two Supreme Court decisions that have actually struck down delegations as excessive.