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Willard Hurst and the Administrative State: From Williams to Wisconsin
DANIEL R. ERNST
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Perhaps because Willard Hurst did not publish his
first book, The Growth of American Law, until 1950, more
than a decade after he entered law teaching, his readers have
often found it hard to imagine him as other than a fully formed
scholar. The pluralist politics of his major writings, their functionalist
sociology, and their attentiveness to consensus in history have
made Hurst seem so much a product of the 1950s that one can easily
overlook the ways in which developments in law and politics in
the preceding decades shaped his perspective on the American past.
1
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No development
more engaged Hurst than "the overshadowing rise of the administrative
process" since the Civil War. Without neglecting the continuing
role of the judiciary in American governance, Hurst wanted to
create a legal curriculum and jurisprudence to supplant the court-centered
paradigms of his day. The curricular innovation came first, in
the form of the "Law in Society" materials that Hurst, with the
collaboration of his dean, Lloyd K. Garrison, developed at the
University of Wisconsin Law School in the 1930s. The statement
of a jurisprudence to replace judicial norms of due process, formal
styles of legal reasoning, and a notion of the Rule of Law premised
on judicial review under written constitutions was harder work.
Not until Hurst published his great legal history of Wisconsin's
lumber industry, Law and Economic Growth, in 1964 did he
feel that he had finally practiced what Roscoe Pound had only
preached by articulating a "sociological jurisprudence" based
on the ideal of law as a functional means to "a socially acceptable
end." 2
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This article
follows Hurst from his undergraduate days at Williams College
through the start of his teaching career at Wisconsin in the fall
of 1937. During these years Hurst acquired an abiding interest
in the rise of the administrative state as well as some of the
insights he would use to account for it in his mature work. For
the most part, the article proceeds chronologically through four
episodes in Hurst's training: (1) his year-long study of Charles
and Mary Beard's Rise of American Civilization undertaken
as an undergraduate at Williams College; (2) his three years as
a student at the Harvard Law School; (3) his research fellowship
with Felix Frankfurter during the 1935-36 academic year; and (4)
his service as legal secretary to Louis D. Brandeis during the
October 1936 Term of the U.S. Supreme Court. The first and third
episodes inclined Hurst to see history less as an aid to the judicial
interpretation of precedents, statutes, and constitutions than
as a way to divine where the state should strike the "balance
of power" in regulating the American economy and society. The
second and fourth episodes show that Hurst embraced the Legal
Realists' skepticism toward judge-made law, but also went beyond
them to address that "large field of present human activity ...
governed not alone by court decisions and statutes, but by administrative
regulations and decisions." More enthusiastically than his mentors
Frankfurter and Brandeis, Hurst accepted the growth of unreviewable
discretion by administrators, and he was quicker to accord "the
regulations, rulings and decisions of administrative agencies"
the same status as judge-made law. 3
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Each of the four
episodes contributed something to Hurst's mature understanding
of the Rule of Law in the new American state, but their lessons
did not add up to a complete answer. His experiences of the late
1930s and 1940s taught him new lessons and gave him cause to discard
or rework what he had already learned. A complete account of the
origins of Hurst's mature work would have to address his activities
as a law professor before Pearl Harbor, his service in Washington's
wartime bureaucracies, and his period of study under a Demobilization
Grant of the Social Science Research Council.
4 Even so, a study of Hurst's education and apprenticeships
is enough to suggest how much his social history of American law
owed to the political history of his young adulthood.
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Conflict and Consensus in
American History
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Particularly because much of the functionalist social
science of the 1950s had a teleological cast and treated such
phenomena as the rise of the administrative state as inevitable
or necessary, one should remember that Willard Hurst, born on
October 6, 1910, came of age during the Great Depression, when
the American economy self-evidently was not functioning and when
the ultimate success of new experiments in administration was
very much in doubt. That society functioned as well as it did
was always cause for amazement for Hurst, little short of a "miracle,"
as James Gould Cozzens, one of his favorite novelists, put it,
the performance of a seemingly impossible feat of social organization
"every day, come hell, come high water." 5 The critic Elizabeth Janeway once wrote that the
heroes of Cozzens's novels were men who understand "the way things
worked, the functioning of the world." They live with these functions,
"interpret them for others and in some part keep the machinery
running. Able, responsible men, more burdened by duty than eager
for power, learning in maturity that one never really knows enough,
stoically bearing the weight of the worldthese are the men
Cozzens sets up as admirable." Hurst agreed that Cozzens's heroes
were admirable, and, like Cozzens himself, he assigned to lawyers
"a key administrative role in making this complex, division-of-labor-society
operate from day to day." 6
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As far as we
know, Hurst first started thinking seriously about the relation
of law to "historical and economic currents" while a student at
Williams College, which he attended from 1928 to 1932. Born and
raised in Rockford, Illinois, where his father had been the superintendent
of a piano factory and the co-owner of most of the town's movie
theaters, Hurst settled on Williams out of what he later termed
"a rather romantic attachment to the idea of going to college
in New England." He recalled, "It in some ways was a rather rough
atmosphere to come into for a young fellow from a Midwest high
school, because Williams was at that point still much dominated
by a student-body drawn from Eastern prep schools who set the
whole social tone and pretty much ran the politics of the place."
He never joined a fraternity, but concentrated his energy on his
studies, at which he excelled; on the student newspaper, where
he was editor in chief; and on the International Affairs Club,
which he served as secretary and president. An economics major
who published a prize-winning essay on the Low Countries' response
to the English Gold Crisis of 1931, Hurst took almost as many
courses in history, and he became captivated by the perspective
the past provided on the relationship between the economy and
governmental processes. 7
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The principal
focus for Hurst's thinking on this subject was a senior honors
tutorial, directed by the historian Theodore Clarke Smith during
the 1931-32 academic year, in which he and Smith argued about
Charles and Mary Beard's recently published Rise of American
Civilization. Hurst read the book enthusiastically and thought
it represented "the whole new light of history." Smith thought
it "phony and pretentious." Judging from the broadside Smith fired
at Charles Beard several years later in the American Historical
Review, he would have told Hurst that Beard's "economic theory
of history" rendered him incapable of pursuing Ranke's "noble
dream" of historical impartiality. Beard believed that "the only
valid history was that which traced the forward movement of society
toward a collectivist democracy," Smith insisted. By making history
the servant of politics, Beard was traveling down a path blazed
by Soviet, Fascist, and Nazi historians. 8
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Fig. 1. James
Willard Hurst, Williams College Gulielmensian, 1933.
Courtesy of Williams College Archives and Special Collections.
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Hurst was never
fully persuaded by Smith. In the 1950s he listed Charles Beard's
Economic Interpretation of the Constitution of the United States
as one of the books "any lawyer whose interest in his profession
reaches beyond technical craftsmanship" should read.
9 Moreover, Hurst often invoked the Beards' view
of the Civil War as a Second American Revolution to justify his
slighting of colonial America. Thus, in 1952 he urged upon Frankfurter
"Charles Beard's thesis" that "the United States had a second
birth in the 1870's," which made the late nineteenth-century lawmakers
as much a founding generation as the Framers. Hurst might trace
"middle class values" back to the English Civil War, but he had
little use for colonial American legal history, and he dismissed
eighteenth-century Anglo-American law as too riven with corruption
and incompetence to be worth studying. His interest picked up
once he detected the social forces he associated with modernization,
such as "the rise of large scale industry and finance, the flow
of immigration, urbanization, the fixing of the modern character
of major political parties, [and] the rise of new style lobbies."
10 The Beards' project of creating a usable past
for a modernizing society, then, inspired Hurst to take a presentist
approach to the past. He could make his history the servant of
his jurisprudence and not feel the qualms that a scholar with
other historical heroes might have felt. 11
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Well before the
1950s, however, Hurst grew dissatisfied with a Beardian approach
to the past as little more than the clash of conflicting interests.
Consequently, he looked to consensual theories of social function
to supplement the Progressive historian's tales of social conflict.
At times he spoke of Charles Beard almost as a youthful enthusiasm.
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In his second
year of law teaching, for example, Hurst told Frankfurter of a
seminar on the history of the Supreme Court he was planning with
William Hesseltine, perhaps the most passionate Progressive in
Wisconsin's Beardian history department. Hesseltine was "a good
man by all accounts," Hurst explained, "also somewhat of a left-winger.
His approach of course has been of the Beard variety: economic
interpretation largely, with concentration on the major and more
spectacular cases." Hurst hoped to "tackle something less obvious
than the usual big cases and derive some light therefrom either
as to American growth generally, or at least to" the development
of the Court. Changes in diversity jurisdiction in the antebellum
period, for example, might offer "a slant on the business of making
federalism work" or on the growth of national commerce.
12
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In 1939 Hurst
reviewed several works that took issue with the Beards' claim
in Rise of American Civilization that the drafters of the
Fourteenth Amendment intended its guarantee of equal protection
and due process to "persons" to be the vehicle for smuggling rights
for corporations into the Constitution. A more defensible position,
Hurst implied with an approving quote of Howard Jay Graham, was
that the doctrine that corporations were persons was "so vital
and natural a part of the self-expansion of judicial power within
the framework of due process, that its postwar development was
assured, whatever may have been the original objectives of the
framers." 13
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By the early
1940s, Hurst was quite ready to move beyond interest as a historical
cause, but when the war came he had only begun to envision how
social process and function might serve as alternatives. Pendleton
Herring's pluralist account of the American polity, The Politics
of Democracy, which Hurst reviewed in 1941, came as a revelation.
Herring argued that interest-group politics was a remarkable achievement,
the peaceful adjustment of social conflict. "This emphasis may
seem nothing novel to men of an older teaching," Hurst wrote,
perhaps with Smith in mind, "but it may cause some revision of
values among readers of my college generation, taught to regard
the political historian as one naively skirting the realities
dealt with by the students of economic and social trends."
14 Hurst would not read systematically in the works
of anthropology, sociology, and social psychology and fashion
an alternative to Beard until his Demobilization Grant. At that
point Richard Hofstadter, another borrower from sociology and
psychology, would surpass Beard in his pantheon of historians.
15
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Outgrowing the Harvard Law
School: Legal Realism and the Administrative Process
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Hurst seriously considered pursuing a graduate degree
in economics, but he ultimately decided that he wanted to learn
about the law from the standpoint of legal insiders, the lawyers
themselves. "The logical place to go, especially for anybody who'd
been four years in Williamstown," Hurst recalled, "seemed to be
the Harvard Law School," and so he went. When he entered the school,
Hurst had not yet decided how he would use his legal education.
While he did want to "become a good lawyer," he did not necessarily
expect to become a practitioner, and he soon set his sights on
a career as a legal academic. 16
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For this scholarly,
thoughtful, and capable student, the case method of Harvard's
first-year curriculum was a disappointment, an "unimaginative
brand of good, solid tradesmen's education."
17 In part, he missed the close relationship he
had had with his teachers at Williams. Harvard was "a very cold,
impersonal place," he recalled. The faculty was "quite remote."
Those who labored on the Restatement projects, he told Brandeis,
sat "in Langdell Hall and gloat[ed] over citations of themselves
with a miser's pleasure." 18 The alienation was only partially alleviated
by Hurst's success on his examinations and his growing sense of
accomplishment and ability. "You sort of figured that at the end
of your first year at the Harvard Law School if you could survive
and make it there you could probably survive and make it any place,"
he remembered. 19
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Hurst's dissatisfaction
was compounded by Harvard's pedagogy. As practiced by such master
Langdellians as Samuel Williston, who taught him contracts, the
case method struck Hurst as willfully blind to the most exciting
and novel aspects of law in the Depression era, as well as the
economic and political dimension of judicial decision making that
the Beards memorably explored in the Rise of American Civilization.
The relentless study of cases and courts provided almost no opportunity
to explore legislation and administration. (Hurst would have to
wait until his year as Frankfurter's research assistant before
he could attend a course on legislation.) Moreover, his instructors
analyzed case law as a matter of legal logic, "an exercise in
Euclid's geometry." That Williston, a sophisticated man of business,
taught the law as if it were "a separate and distinct piece of
reality" remained a mystery to him. 20
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The Lessons of Legal Realism
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As an antidote to the case method, Hurst prescribed
for himself a course of reading in the work of Karl Llewellyn
and other Legal Realists. In Llewellyn's writings on the law of
sales Hurst found the exciting story of the interplay between
law and economic forces that was so exasperatingly absent in Williston's
contracts course. Llewellyn conveyed the notion that "the law
of sales had something to do with the way an American economy
worked and developed." And that "something" was thought of in
functional terms, as a contribution to the proper working of particular
societies in distinct times and places. The functional approach
to law would be for Hurst the most important contribution of Legal
Realism. "A realistic history of law in the United States," he
later wrote, "will be a social history of law, taking law as man-made,
and as the product of both deliberation and drift, but not of
any immanent superior order of reality." 21
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The social origins
of law and the implication for the common law of contract, tort,
and property were recurrent themes in Hurst's mature work. At
the most fundamental level, Hurst attacked the notion of individuals
as independent bearers of natural rights that constrained the
public realm of policy-making, arguing instead that "men realize
their humanity only in a social context." He paused to make this
point during his legal history lectures with a blast at the Gilded
Age's worship of "what was called 'the self-made man.'" It was
"certainly one of the most vain characterizations of human nature
anybody ever succeeded in inventing," he snorted. "As if any individual
could be 'self-made'"as if any individual did not owe "the
society into which he is born" an enormous debt for "an immense
heritage" in the form of language and accumulated social knowledge
"for which he hadn't paid a cent." 22
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Such views informed
Hurst's understanding of the "regulatory implications" of the
consideration doctrine and other aspects of contracts law. "Insofar
as the law undertakes to enforce private agreements," he explained
to his students, "to that degree it is in effect delegating the
power of the state to those people who want to enforce their contracts,
and to that extent the state is sanctioning what these contracting
parties want to bring about." And if private rights were in fact
publicly created, judges could not pretend that they were simply
deferring to a distinct realm of natural justice in deciding whether
to enforce a contract. Had the U.S. Supreme Court decided to enforce
a racially restrictive covenant in Barrows v. Jackson,
Hurst argued, it would of course have been acting on its own authority
to see to it that the public power was used responsibly. It had
also acted on the same mandate when it refused to enforce the
covenant in that case. 23
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An opportunity
to demonstrate his grasp of what Hurst considered the "basic"
insight of Legal Realism came during his term as Brandeis's legal
secretary in a case involving picketing by trade unionists. Senn
v. Tile Layers Protective Union was a constitutional challenge
to a Wisconsin statute that forbade courts from prohibiting peaceful
picketing. It was brought by a nonunion contractor who employed
one or two workers but also labored on his jobs himself. Senn
argued that by forbidding courts from issuing injunctions against
strikes on his jobs Wisconsin was failing in its duty to protect
his "inalienable right" to "work in his own business with his
own hands." The statute violated the Fourteenth Amendment's guarantee
of due process, he insisted, and was void. 24
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Brandeis's draft
opinion attempted to parry Senn's argument by distinguishing between
an act of the state, for which a Fourteenth Amendment claim could
be made, and an omission to act, for which the requisite "state
action" was missing. In effect, Brandeis argued that the state
of Wisconsin had not inflicted economic loss on the contractor;
the trade unionists had. Much like the Legal Realist Walter Wheeler
Cook, Hurst objected that Brandeis's resort to the act-omission
distinction ducked the difficult issue of whether the state should
recognize and confirm the defendant's power to inflict economic
loss on the plaintiff. "True, the State does not by affirmative
fiat take away plaintiff's right to work himself," Hurst told
Brandeis, "but what of the practical effect of leaving the unions
free to exert strong pressure to the same end?" Brandeis's opinion
should acknowledge that the Court was "in the realm of choice,"
Hurst advised. The "State's decision to leave one property owner
in 'freedom' may inescapably mean a decision to impose restrictions
upon the 'freedom' of another." 25
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Hurst's belief
in the public origins of private rights had far-reaching implications.
It suggested that the rights of interest groups and other collective
actors were also the products of a prior collective choice. As
Hurst later wrote, incorporation statutes, public subsidies, the
opening of national markets, and "the freedom which law gave for
association" created an astounding array of interest groups to
which politically organized Americans readily deferred throughout
the nineteenth century, rather than claim "the planning of social
policy" for themselves. Laissez-faire was not a natural condition;
the real meaning of this "myth" was "our deep adherence to the
institution of the market as the device to determine where economic
decision-making should rest." The establishment of public utility
commissions, the revitalization of antitrust law, and a host of
other systems of inspection, licensure, and regulation were not
novel intrusions into the private realm, but a reassertion of
the public's preexisting right to strike "the balance of power"
among state-created entities by intervening at "key points in
social organization." The fundamental question, Hurst would argue
to Mark DeWolfe Howe in 1949, was "Who Runs the Show"? "Control
of the economy" had been entrusted at various times to various
groups, including "labor union heads and corporation bureaucrats
and government bureaucrats." Those who run "the show without having
taken an official oath of office and those who run at least part
of the show on the basis that they have taken an oath of office"
were equally accountable for their use of public power.
26
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The case method
depicted law as an apolitical process of deduction from abstract
principles arrived at through induction from decided cases. Hurst
found an alternative to this in the Legal Realists. Yet their
functional approach to law provided at best only a point of departure
for understanding the command-and-control regulation, licensure
and inspection, taxation, social insurance, social provision and
other forms of administrative action that burgeoned in the twentieth
century. The Legal Realists, Hurst later explained, made "only
a limited" break with the Langdellian curriculum. For the most
part, they were interested in "the courts, and in a more realistic
understanding of what moves judges to decide the way they do."
Hurst was convinced, as he later put it, that "statutes and administrative
rules and precedents" provided "principled or predictable lines
of public policy," and not simply "arbitrary exercises of will."
But where, at the Harvard Law School, might he find help in understanding
the actions of those who "ran the show" within the state but outside
the courts? 27
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The Frankfurterian Beacon
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The most promising candidate was Felix Frankfurter,
who had made the teaching of legislation and administrative law
his specialty since joining the faculty in 1914. Hurst encountered
Frankfurter in his course on the Interstate Commerce Act, worked
with him closely while editing several student notes on administrative
law during the 1934-35 academic year, and audited his graduate
course on administrative law during his year as Frankfurter's
research assistant. He read Frankfurter's influential statement
on the place of law in the administrative state, The Public
and Its Government (1930), no later than his third year of
law school, when he edited a note citing the book.
28
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Frankfurter's
acceptance of the rise of administration made him a beacon for
Hurst. The growth of administrative government, Frankfurter insisted,
was no perversion of the timeless constitutional principle of
separation of powers but "the inevitable response of government
to the needs of modern society." Frankfurter conceived of those
needs as vast, material forces, such as "technology, large-scale
industry, and progressive urbanization." 29 His casebooks provided an expansive view of administration,
ranging from the Interstate Commerce Commission (ICC) to workers'
compensation commissions to a host of state-level systems of "licenses,
certificates, permits, orders, awards, and what not." So variegated
a development could not have been the product of a particular
political philosophy or act of "far-sighted planning," Frankfurter
maintained. Rather, it resulted from the "pressure of circumstances."
30
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According to
Frankfurter, the complexity of the problems of modernity would
frustrate any technocratic solution offered by experts wielding
an "irrefragable fund of knowledge." The American people were
not up to the job, either. They were too "hurried," too "hostile
to reflection," and more interested in scandal than "a knowledge
of the good in government." Politicians could only see government
as a source of patronage; they were responsible for the appointment
of "mediocre lawyers" to administrative bodies, who fell far short
of Frankfurter's ideal bureaucrats, the members of the British
civil service. 31
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The challenge
for American educators, Frankfurter wrote, was to produce administrators
with the proper "intellectual procedure and ... temper of mind,"
a procedure and temper that bore a remarkable resemblance to the
qualities that Roscoe Pound believed the common law tradition
imparted to American lawyers. The best administrators, such as
the ICC's Joseph B. Eastman, were "fortified" by their technicians
but not overwhelmed by them. They independently performed the
"quiet, detached, laborious task of disentangling facts from fiction,
of extracting reliable information from interested parties, of
agreeing upon what is proof and what surmise." They were as independent
of "the actual or supposed wishes or needs even of the President
as is the Supreme Court of the United States." (On the other hand,
they were responsive to the "constant play of criticism by an
informed and spirited bar.") If the administrators did all this,
then they would enjoy "an esteem in the public such as the public
now entertains for the judiciary," if only because they were scarcely
distinguishable from judges, as Frankfurter idealized them.
32
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Hurst followed
Frankfurter in seeing administrative action, such as Wisconsin's
system of worker's compensation, in functional terms, as a response
to "the force of facts." He agreed that the American public was
not up to the job of governance, especially when the return of
prosperity after World War II distracted them with consumer goods.
Legislative oversight might help "headline-hunting legislators,"
but it unhelpfully made "lower-echelon executive officers" fear
for their jobs and reputation. Party regulars were always quick
to see a burgeoning state as an expansion of "one of the most
concrete and tangible fighting grounds of government, namely,
jobs." 33
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Hurst also agreed
with Frankfurter that "the expert should be on tap, but not on
top"unless that expert was a lawyer. 34 Frankfurter's notion of proper training may have
been more lawyerly in its emphasis on reason, and Hurst's more
social scientific in its emphasis on social function, but both
believed that lawyers were peculiarly suited to seeing the complex
whole that specialists missed. "The lawyer is the expert whose
skill it is to make social use of the experts in all other fields,"
Hurst wrote in 1942. The very nature of the legal profession"the
peaceful adjustment of conflict and the co-ordination and planning
of men's interrelated activities"made lawyers "jacks-of-all-trades."
35 Together with their knowledge of "problems of
power," this eclectic outlook permitted them to "mould the social
environment into a decent, viable balance of power for the greater
liberty of private individuals and groups." 36
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Yet, if Hurst
looked to Frankfurter for guidance in understanding the administrative
process in its own right, he must have been disappointed. True,
Frankfurter praised the Commonwealth Fund's investigations of
the internal working of administrative agencies during the 1920s
and 1930s. "Only a physiological study of administrative law in
action will disclose the processes, the practices, the determining
factors of administrative decisions, and illumine the relation
between commissions and courts, now left obscure by the printed
pages of court opinions," he wrote in the preface to one of them.
For lawyers, however, the chief utility of such projects was the
insight they provided into the task of tailoring standards of
judicial review to the "history, structure and enveloping environment"
of a particular agency. Here and whenever Frankfurter identified
"the concern of Administrative Law" as a field, he settled not
on what administrative agencies did, but on how "the traditional
system of Anglo-American law and courts" disposed of the jurisdictional
and constitutional issues administrative action raised.
37
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A Seminar in Statecraft
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In the end, then, Hurst had to look beyond Frankfurter
for his fullest, most satisfying insight into the work of administrators
during the Depression and New Deal. He would ultimately find it
as a member of the Harvard Law Review. Looking back, Hurst
considered the Review very much a part of his education.
In fact, law review was "the best seminar any law school offers,"
"an absolutely triple-A educational experience." As Note Editor
he was both "merciless" and tireless. Each week would find Hurst
closeted with a new author, often for many ten-hour days, as the
two hammered out the "original draft together" in an intense,
collaborative effort. The views expressed in the notes are as
much a guide to Hurst's thinking as they are to that of their
anonymous authors. 38
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Some of the notes
Hurst edited addressed issues near the core of Frankfurter's court-centered
approach to administrative law. For example, a note on Panama
Refining Company v. Ryan (the so-called "Hot Oil" case) attempted
to salvage something from the wreckage of the Supreme Court's
attack on the National Industrial Recovery Act (NIRA) under the
delegation doctrine. From the start Frankfurter had misgivings
about the statute because of the danger that the National Recovery
Administration would produce self-interested cartels instead of
intelligently struck balances of private and public interests.
Delegation was not an evil in itself, however. In fact, it was
necessary if his farseeing administrators were to be free to perform
their duties. 39
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The note on Panama
Refining that Hurst editedin all likelihood, along lines
Frankfurter himself suggestedargued that even after the
decision a better-crafted delegation to a more established agency
would easily survive constitutional review. Judicial deference
to the ICC, for example, showed that courts would uphold delegations
for matters requiring prompt action, facility with complex details,
and expert knowledge. Congress's delegation to the National Recovery
Administration, in contrast, neither mandated the "expert handling"
of matters entrusted to it nor specified the process by which
that expertise would be acquired or employed. Twenty years later,
Hurst would, in effect, restate this argument by characterizing
Panama Refining and the Schechter decision as "reactions
to pressure-group legislation, rather than as curbs on official
agencies." 40
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In other notes
Hurst went beyond such Frankfurterian concerns to collaborate
on studies of administrative bodies in their own right. One lengthy
note, for example, reviewed the "unique body of authority on peacetime
regulation of labor relations" produced under the NIRA by the
first National Labor Relations Board (presided over by Hurst's
future law dean, Lloyd Garrison). Even more impressive was a study
of the consequences for "bodies administrative and legislative
rather than judicial" of the decline in railroad revenue brought
on by the Great Depression and the rise of competing modes of
transportation. Other notes addressed such landmarks of the New
Deal as the Public Works Administration and the Tennessee Valley
Authority. 41
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In the "very
select seminar" of the Harvard Law Review, then, Hurst
at last acquired some direct insight into the working of the administrative
state to complement the other lessons he was taught or taught
himself at law school, such as the inherently political nature
of common law reasoning, the functional origins of the administrative
state, and the frailty of the delegation doctrine as an obstacle
to the growth of administrative action. Once he reached the hospitable
environment of Garrison's law school he would have the freedom
and security to assemble a legal pedagogy and jurisprudence that
responded, as he told the historian Hendrik Hartog, "to my own
sense of the things that my own legal education had never given
me." 42 Before doing so, he would extend his education
with apprenticeships under two of the most eminent figures in
American legal history. In some respects, Frankfurter and Brandeis
confirmed Hurst's views about law, history, and administration;
in others, they presented him with examples he would have to outgrow
or, in Brandeis's case, repress.
|
34 |
|
"Public Policy in the Dimension
of Time"
|
|
After his graduation and a half-hearted testing of
the market for young lawyers in Chicago, Hurst returned to Cambridge
to serve as Frankfurter's research fellow during the 1935-36 academic
year. The fellowship, which Frankfurter financed through private
fund-raising, was already a well-established stepping stone to
Supreme Court clerkships with Holmes or Brandeis and a career
as a law professor. The principal goal of the fellowship, as Frankfurter
saw it, was "to win men of calibre for law teaching by giving
them ... an apprenticeship taste of it." His success was borne
out in the careers of Hurst and his predecessors, who included
Paul A. Freund, Henry M. Hart, Jr., Wilber Katz, James M. Landis,
David Riesman, Jr., Malcolm Sharp, and Harry Shulman.
43
|
35 |
|
Hurst's principal
task was to help Frankfurter prepare a series of lectures on judicial
interpretation of the Commerce Clause in the nineteenth century.
44 The Commerce Clause under Marshall, Taney,
and Waite was Frankfurter's attempt to illustrate the subtle,
ad hoc nature of constitutional development and, in the process,
to advance Louis Brandeis's project of protecting the states'
experiments in economic regulation from conservatives on the Supreme
Court. "The states need the amplest scope for energy and individuality
in dealing with the myriad problems created by our complex industrial
civilization," Frankfurter had argued in The Public and Its
Government. In 1934 and 1935 he used similar terms in arguing
that any system of unemployment insurance enacted by Congress
should defer to the existing programs of the states, such as the
one Louis Brandeis's daughter and son-in-law, Elizabeth and Paul
Raushenbush, had drafted for Wisconsin along lines suggested by
the justice himself. 45
|
36 |
|
Frankfurter's
lectures showed that the Constitution, properly interpreted, did
not stand in the way. The development of the Dormant Commerce
Clause, in particular, was a matter of "practical necessities
and shrewd judgments about practical matters," not deductions
from "a technical rule of law." During its formative years the
U.S. Supreme Court had weighed a variety of factors in coming
to a decision in particular cases, including "state necessities,
the fitness of state relief as against nation-wide action, the
limited manifestation of a given evil or the limited benefits
of its correction, [and] the actual interest of the whole country
in a phenomenon especially virulent in a particular state." Although
Frankfurter denied that the nineteenth-century cases could "be
put in the categories of our own thought," the "dispassionate
verdict of history" he announced looked toward greater freedom
for the states. 46
|
37 |
|
During the fall
of 1935 and most of the winter, Hurst conducted the research for
the lectures with little guidance from Frankfurter. "My chore
for him for that year was to bury myself in all the material I
could find" about the Supreme Court and the Commerce Clause between
1789 and 1890. In December, Hurst submitted a tentative outline,
an analysis of the relevant cases, and a list of the materials
he had consulted. He offered the last, he explained, "Not as a
Little Jack Horner gesture, or to show the extent of the investigation,
so much as to bring out its limitations." The list was impressive,
but the original sources were, as Hurst observed, "all primarily
legal," and he stuck close to constitutional historiansCharles
Beard, Albert Beveridge, James Bradley Thayer, and Charles Warrenfor
"the general political and social atmosphere of the time."
|
38 |
|
He then typed
lengthy memoranda outlining successive phases in the development
of the law. These did not amount to "a rough draft" of the three
lectures, Hurst insisted, but they did serve as the principal
basis for the remarkable two-week "seminar" Frankfurter conducted
at his home on Brattle Street in early 1936, from which the manuscript
emerged. "He'd pace the floor and talk, and when he said what
he thought was the right way to grab the thought he had in mind
I'd knock it off on the typewriter," Hurst recalled. Then Hurst
would subject Frankfurter's text to a "very real, give-and-take
criticism." "If I thought he wasn't getting the proper emphasis
or was not getting the proper material out of the case," he explained,
"I was supposed to barge in and argue with him." Given this approach,
the relative contributions of Hurst and Frankfurter to the finished
work are difficult to untangle from the surviving documents in
Frankfurter's papers, but that record is consistent with both
Hurst's claim that Frankfurter "put himself into what he wrote"
and Frankfurter's acknowledgment of "the indispensable collaboration
of Mr. Willard Hurst." 47
|
39 |
|
Frankfurter took
away from the experience a lasting belief in Hurst's abilities.
In the early months of 1937, he urged Dean Acheson to take the
young Brandeis clerk under his wing. "I wonder if you have had
a chance to penetrate beneath the surface of his shyness and social
inexperience," Frankfurter wrote. "He is really an unusual fellowa
man of uncommon culture, refinement and maturity, but he ought
to have more experience of the world than his devotion to his
duties and his newness in Washington are likely to afford him."
Less than a week later he again praised Hurst to Acheson: "Hurst
is one of those rare creatures who does not need the seasoning
that practice sometimes gives. As Marion said to me when he was
here last year, 'Hurst is mature enough now to go on the bench.'"
And, in commending Hurst to Lloyd Garrison, Frankfurter exclaimed,
48
|
40 |
|
I cannot speak too highly of his scholarly
equipment, his penetrating mind, and the kind of integrity which
suffuses the whole quality of a man's work and makes the difference
between a teacher who imparts ferment and just a grubbing pedant.
He is a shy, modest fellow, but a man of real firmness of character
which is bound to leave its impress, by its intrinsic force, upon
students, colleagues, and the community. Grab him if you can!
|
Beyond Originalism
|
|
The fellowship had two significant consequences for
Hurst, one lasting, the other of shorter duration. First, Hurst
left the fellowship with an understanding of constitutional history
that all but incapacitated him as a producer of originalist arguments
in constitutional litigation. In the lectures on the Commerce
Clause Frankfurter stressed the historically contingent content
of the Constitution and the corollary that past meanings could
be revised in light of subsequent developments. "The Constitution
of the United States is most significantly not a document but
a stream of history," Frankfurter declared. He also quoted Holmes
to argue that although history played a critical role in constitutional
lawit "sets us free and enables us to make up our minds
dispassionately"it was not filled with authoritative commands
to the present. 49
|
41 |
|
Hurst reached
a similar conclusion early in his research assistantship. In 1934
a New Deal lawyer, Robert L. Stern, argued in the Harvard Law
Review that the unambiguous intent of the Framers in drafting
the Commerce Clause was to check one state's infliction of injustice
upon another, and not to constrain the federal government. The
article quickly became a touchstone for New Dealers' efforts to
expand the reach of the federal government, a goal that Hurst
almost certainly supported. Nonetheless, Hurst objected that the
meaning of the Commerce Clause should not be confined to the intent
of the Framers. As Hurst put it, the clause should be understood
"as a matter of history rather than of dialectic." Because Stern
conceded that the "national powers should be what they were intended
to be in 1787," he was obliged to exaggerate the economic nationalism
of the Framers. He would have done better to have shown what the
powers of the national government "were then intended to be, in
order that it may more vividly be seen what they have become."
50
|
42 |
|
Hurst expressed
similar views in a conference held at the New York University
School of Law in 1953. Where a constitutional question involved
"the definition of particular legal agencies or particular legal
procedures," the words had "a precise, history-filled content"
that judges had to respect. But in considering "grants of substantive
power to be used in an indefinite future," judges needed to regard
"the general political, economic, and social history of the United
States" in the intervening years. To illustrate the proper interpretation
of such general grants, Hurst referred to a favorite decision
from Frankfurter's Commerce Clause book, Pensacola Telegraph
Co. v. Western Union Telegraph Co., in which Chief Justice
Waite updated earlier doctrine in light of the recently perfected
technology of telegraphy. He also invoked Holmes's view, in Missouri
v. Holland, that "our whole experience," and not merely "what
was said a hundred years ago," was relevant to constitutional
interpretation. To hold otherwise, Hurst believed, was to attempt
to "evade the responsibilities of choice which resistless change
will surely thrust upon" the present. 51
|
43 |
|
Hurst acknowledged
that empowering judges to consult "general history, as compared
with the history crystallized in particular decisions or authoritative
documents," would expand their discretion, but he denied that
objectivity or responsibility in judging would suffer as a result.
Properly trained lawyers could help judges recover the historical
record, "not just as it is read by any one mind or even any one
generation, but as it emerges in many-sided reality from the best
consensus of many minds and many years." Astute judges could reach
the decision that best addressed the social needs revealed through
this inquiry. Thus, in Pensacola, "hardheaded, fact-minded
Waite looks at the way contracts are made, goods ordered and shipped,
government administered at a distance, for his conclusion that
history has brought the telegraph into the mainstream of interstate
commerce." 52
|
44 |
|
Hurst's understanding
of the past was too complex, its meaning too open to debate, for
most constitutional litigators, who looked to history for a single,
authoritative, and unambiguous "original understanding" with which
to constrain judicial discretion. The appendix on the history
of treason Hurst prepared over the winter of 1944-45 for the government's
brief in Cramer v. United States remains a leading treatment
of the subject, yet the Supreme Court lawyer Frederick Bernays
Wiener complained that, by trading advocacy for objectivity, it
weakened the prosecutors' case. 53 In the 1950s, a sympathetic Hurst tried to help
the NAACP in Brown v. Board of Education by reviewing the
history of the ratification of the Fourteenth Amendment in Wisconsin.
Wisconsinites endorsed "equality of treatment before the law,"
Hurst explained to William T. Coleman, but their views were "logically
compatible with segregation." "Nothing in the Wisconsin materials
seems to me to bear directly on the separate-but-equal position."
Still, Hurst believed that history had something to offer the
NAACP's case. Because the Equal Protection Clause was an open-ended
standard, he told Thurgood Marshall, it should be interpreted
in light of changing historical circumstances. "Matters which
did not seem of prime public concern, or perhaps not of public
concern at all, in one social environment, may, in the unfolding
of a new environment, take on [a] wholly different complexion."
That explained why Chief Justice Waite expanded the reach of the
Commerce Clause in the Pensacola case, Hurst told Marshall,
and that, he implied, was why the Supreme Court should find new
meaning in the Equal Protection Clause. 54
|
45 |
Beyond the Judicial Process
|
|
On the question of the value of history to constitutional
interpretation, then, Hurst did not stray far from the position
he held as Frankfurter's research fellow, which was quite close
to his mentor's own view. But in regard to their mutual fascination
with the history of the U.S. Supreme Court, the two men ultimately
parted company. Hurst first encountered Frankfurter's captivating
historical approach to the Court in courses on federal jurisdiction
and public utilities law. "He would just squeeze so much out of"
a case, Hurst recalled. Frankfurter's fascination with the Supreme
Court was infectious, and, thanks to the research assistantship,
Hurst got a larger dose of it than most of the professor's many
protégés. He would need several years of law teaching
half a continent away from Cambridge before he could envision
an alternative to his mentor's court-centered legal history.
55
|
46 |
|
Frankfurter's
continuing influence was evident in Hurst's first legal history
course, the seminar with Hesseltine on the history of the U.S.
Supreme Court, and in a series of book reviews published in 1938
and 1939, in which Hurst pilloried histories of the Court, biographies
of its justices, and a handbook of constitutional history for,
in effect, ignoring the concerns that animated Frankfurter. The
handbook, for example, in Hurst's judgment overlooked "the economic
and social conflicts which find expression in constitutional doctrine"
and the "matters of procedure and of technique in advocacy and
decision" that constrained the justices' decision making.
56
|
47 |
|
At some point
in the late 1930s, Hurst struck out in a new direction. ("I didn't
wanted to wind up knowing nothing except all the gossip about
the judges," he later explained.) The impetus was his development,
between 1938 and 1940, of an ambitious course on public policy
toward injuries in the workplace, which took as its starting point
a more modest set of materials Garrison assembled before Hurst's
arrival. Hurst and Garrison wanted the "Law in Society" course
to "expose students to a much broader range of legal agencies
than just courts. We wanted something that would involve the development
of legislation and administrative law particularly." That it did,
first by tracing a single case through the legal process and then
by retracing the development of the law of workplace injury from
its common law origins through the triumph of worker's compensation.
"I already was in legal history more or less with that course,"
Hurst recalled. "Law in Society" was "a history course," but "not
in any antiquarian sense." Rather, it was a study of "the development
of public policy in the dimension of time." 57
|
48 |
|
Early in 1940,
Hurst reported to Frankfurter on his plans for a "'large canvas
legal history.'" That autumn, as he was readying requests for
permission to reprint material for "Law in Society," he also received
Justice Brandeis's approval of his "thrilling" plans for "an intensive
study of Wisconsin's economic-legal history." By 1941 students
working under his grant from the National Youth Administration
had compiled a digest of the decisions of the Wisconsin supreme
court in terms of the industries out of which the cases arose.
Hurst settled upon the lumber industry after a revelatory encounter
with the environmentalist Aldo Leopold at a university dining
club. He made some "test soundings" before leaving for Washington
and the Board of Economic Warfare in February 1942. In 1942 he
published a research agenda that took social function, not doctrine,
as its organizing principle. "The more we examine law not in terms
of doctrinal classification, but in terms of a given economic
or cultural function or activity upon which it plays from all
sides," he concluded, "the more we may learn about the wise choice
of regulations, the more broadly we may appraise accomplishments
and plan for the future." 58
|
49 |
|
As readers of
his later work know well, Hurst's aspirations for a legal history
that comprised the administrative and legislative processes as
well as litigation survived his "limited experience as a bureaucrat"
during World War II. Hurst would take almost two decades after
his demobilization to publish his great exemplar of the functional
approach to law, Law and Economic Growth, but the extent
to which his views on legal history had departed from those of
his mentor was obvious as early as 1955. When Frankfurter sent
Hurst a reprint of his contribution to the Harvard Law School's
conference on the bicentennial of John Marshall's birth, the onetime
student replied to his old professor that he hoped Harvard might
"stir itself once in a while in coming years ... to acknowledge
the existence of other processes of government" than the judicial.
"We continue to be a very litigious-process-biased group of legal
scholars," he continued, "and I am discouraged at the scant signs
among the newest generation of law teachers of any large amount
of interest in venturing into more original research in the legislative
and administrative fields." The Harvard Law School would have
done better to sponsor a conference on "the chief executive as
law maker" or celebrate the work of a great governor, like Al
Smith of New York. If the justice's response to this suggestion,
made at the dawn of the Warren Court, ever took written form,
it does not, apparently, survive. 59
|
50 |
|
Isaiah's Apprentice
|
|
After his year with Frankfurter, Hurst embarked on
a second "working partnership," this time with "an aged master
of the craft." As a rule, relations between the eighty-year-old
Justice Brandeis and his twenty-six-year-old clerk were formal
and businesslike, thanks to the justice's "jealous guardianship
of his own privacy." Personal exchanges, if few, were among Hurst's
most treasured memories. One was Brandeis's confiding remark,
in the midst of the Court-packing controversy, that FDR was too
much the "smart man," who short-sightedly grasped at an immediate
political victory to the long-term detriment of governmental institutions.
Another was the justice's verdict on Woodrow Wilson's doomed campaign
for the League of Nations: it showed "the ever-present need that
men be conscious of the limits of their physical, moral and mental
energy, and not overcommit themselves." A third was Hurst's Thanksgiving
dinner with Brandeis, where the guests included Justice Benjamin
Cardozo, the social reformer Monsignor John Ryan, and Frankfurter's
model administrator, Joseph Eastman. 60
|
51 |
|
Like other Brandeis
clerks, Hurst did most of his work for the justice in one of the
two apartments Brandeis rented on California Street north of Dupont
Circle, except for occasional research trips to the Supreme Court
or the Library of Congress. "At the start of the year, just to
get me into the swing of things and keep me busy," Hurst wrote
short memoranda on petitions for certiorari. The bulk of his work,
however, was to assist Brandeis in completing opinions the justice
had already drafted. Hurst's job was to check Brandeis's statement
of the facts of the case against the record, find precedential
or statutory authority for any unsubstantiated legal claim, and
generally to "argue with him wherever I found anything that I
felt called for arguing." 61
|
52 |
|
Brandeis did
set limits on Hurst. He was not free to raise "points of academic
interest," Hurst recalled, and once, when he wrote a "hot little
piece" urging Brandeis to vote to take up an immigration case
in which an "obvious injustice had been done," the justice adopted
a "rather hard-boiled attitude" and lectured him that the Supreme
Court could only consider cases presenting broad issues of public
policy. When Hurst could not find an authority for Brandeis's
claim in Senn that the "freedom of speech ... guaranteed
by the Federal Constitution" extended to unions' publicizing the
facts of a labor dispute, Brandeis simply smiled and replied,
"I think we'll let it stand anyway." David Riesman, Jr., Brandeis's
clerk during the preceding year, had a similar experience. "We
have had several good scraps about policy," Riesman wrote to Frankfurter
in November 1935, "but remembering your warning, I don't push
him when I see his mind is made upas it generally is."
62
|
53 |
|
Within limits,
then, Hurst felt as free as if he "were back at the Harvard
Law Review, editing some piece of writing" by one of his classmates.
In one case the young man suggested that Brandeis should not "so
baldly" claim that a precedent had been overruled; in another
he drew the justice's attention to "a rather ambiguous" use of
a word; in a third he observed that "a bit more charity" was in
order in describing the actions of a district judge, "in view
of the slightly dubious virtue" of the Court's own resort to a
per curiam opinion. Hurst even offered Brandeis grammatical advice,
albeit "with humility." 63
|
54 |
|
Once again, Hurst
impressed a mentor. "You cannot be unaware of the fact that you
are giving the Justice help and comfort," Frankfurter wrote to
Hurst in October 1936. In fact, Hurst worked so hard that the
justice became concerned. "You are making good progress," Brandeis
assured him in January 1937. "Don't fail to get adequate sleep
within the next 24 hours." In May, Frankfurter could report to
Dean Acheson that the justice considered Hurst "the best secretary,
professionally speaking, he has ever had." 64
|
55 |
The Presumption of Constitutionality
|
|
Hurst was convinced that he had witnessed a "constitutional
crisis" in the years 1936 and 1937 when a majority of the Court
clashed with "a confused and troubled general public hit by the
depression." The end of the crisis came with a "breakthrough"
in public policy, the Court's unambiguous decision to presume
the constitutionality of statutes and administrative decisions
regulating economic interests. Hurst thoroughly approved of the
"presumption of constitutionality," and it became an abiding concern
of his teaching and writing. 65
|
56 |
|
For Hurst, the
rule that "a statute is constitutional until a challenger plainly
shows the contrary" was much more than a rhetorical flourish.
Properly understood, it was "a somewhat complex structure" that
effectively prevented the judiciary from questioning the facts
and "fact-enmeshed values" found by legislatures and administrators.
The presumption put a heavy burden of proof on the party challenging
a statute or regulation. "The attacker must establish either that
the legislators could not reasonably find facts to exist creating
the problem with which the statute purports to deal, or that they
could not reasonably determine that the statute represents a socially
acceptable value or a means calculated to achieve that value."
By taking "judicial notice" of facts not appearing in the record,
sympathetic judges could help attackers overcome the burden, but
Hurst thought they should do so only if the matter was "beyond
reasonable dispute by men knowledgeable in the field."
66
|
57 |
|
Hurst often associated
the presumption of constitutionality with Brandeis, who had memorably
stated it in O'Gorman & Young, Inc. v. Hartford Insurance Co.
(1931) and, in dissent, in New State Ice Co. v. Liebmann
(1932). 67 In a tribute to Brandeis in 1966, for example,
Hurst spoke of the justice's "regular, realistic search for facts"
as he reviewed the ends and means of legislation. His fastidiousness
in doing this, Hurst maintained, was a sign of Brandeis's "stern
self discipline." Like other admirers of Brandeis, Hurst could
cite many cases in support of his portrait of the justice as a
proponent of judicial restraint. Yet Hurst could also recall cases
in which he was more eager than his justice to promote the growth
of "something like an area of prerogative power" among administrators
and executive officials. 68
|
58 |
|
Hurst might
have cited Bourjois, Inc. v. Chapman to illustrate Brandeis's
deference to a regulatory initiative. In this case the plaintiff
challenged Maine's scheme of licensing the sale of cosmetics as
a burden on interstate commerce. After a year's study of the Dormant
Commerce Clause with Frankfurter and armed with Brandeis's opinions
on the presumption of constitutionality, Hurst made short work
of the issue. First he observed that the plaintiff had challenged
the statute before it went into operation. After reviewing the
case law, he concluded that "the statute does not on its face
impose unreasonable and excessive fees." To that extent, at least,
it was not a direct burden on interstate commerce. Should Brandeis
go further and consider the actual operation of the licensing
scheme since the start of the suit? No, said Hurst. Under the
presumption of constitutionality, the challenger in some future
attack on the statute was responsible for gathering that evidence.
"This Court may not go beyond the record and take judicial notice
of the operation of the Act since the hearing." On this issue
Brandeis's opinion generally followed Hurst's reasoning.
69
|
59 |
|
On at least three
other occasions, however, the two men disagreed, with Hurst inclining
toward greater freedom for administrators and Brandeis toward
sustaining the superiority of the judiciary. Because Hurst worked
within limits set by his "master," some of these disagreements
must be inferred from subtle differences of treatment. The Bourjois
case provides one example. The plaintiff had argued that, by failing
to provide applicants with a hearing before a denial of a license,
Maine had violated constitutional guarantees of due process. Hurst
advised Brandeis to write that hearings were never necessary if
applicants could obtain judicial review of administrative decisions.
This went too far for Brandeis. He kept open the possibility of
a future constitutional challenge to other statutes by adding
the words "under the circumstances and of the character here involved"
to those Hurst proposed. 70
|
60 |
|
In a second case,
Brown & Sons Lumber Co. v. Louisville & Nashville Railroad
Co., Brandeis vigorously attacked the settled practice of
an administrative agency, while Hurst did what he could to limit
the holding. The case was a suit filed by two shippers to recover
damages from railroads that had charged them in excess of the
rate specified by the "Combination Rule" of the Interstate Commerce
Commission. The rule directed railroads to use a special formula
in calculating freight rates whenever the Commission had not published
a through rate for at least one route between two points. In seeming
conflict with the language of the rule, the ICC had long construed
it to apply when it had published a through rate over one or more
routes, but not over the particular route a shipment would take.
|
61 |
|
The shippers
argued that the federal courts had to accept the ICC's construction
of the rule because it involved "the exercise of sound administrative
discretion as to technical and intricate matters of tariff application
and the relation of tariffs to one another," but Brandeis disagreed.
The disputed language of the Combination Rule"where no published
through rates are in effect from point of origin to destination"was
"not technical," he replied. Its interpretation was "a question
of law, not differing in character from those presented when the
construction of any other document is in dispute." If the ICC
wanted to lower rates over the routes in question, it should hold
hearings and establish a joint through rate, as the Interstate
Commerce Act provided. 71
|
62 |
|
Most of Hurst's
memo on the case helped Brandeis sharpen or substantiate his argument,
but at the end he raised a query. Should not Brandeis distinguish
Brown from another case, cited by the shippers, which held
that constructions of a statute by the body charged with enforcing
it must be read into the statute if the construction was "not
plainly erroneous," had "long obtained in practical execution,"
and had "been impliedly sanctioned by the reenactment of the statute
without alteration in the particulars construed"? As Hurst would
observe in The Growth of American Law, the emergence of
such doctrines was a precondition for the development of an administrative
"prerogative." Brandeis's holding ran against this trend. In 1936,
to limit the damage, Hurst proposed that Brandeis declare that
the ICC's construction was "plainly erroneous" and expressly note
that the case involved "nothing as authoritative over the Court
as intervening acquiescence by the legislature." Again Hurst's
efforts proved unsuccessful. Brandeis's opinion in Brown
in no way acknowledged Hurst's suggestion. 72
|
63 |
|
In a final case
the conflict between master and apprentice was explicit and squarely
involved the presumption of constitutionality. Thompson v.
Consolidated Gas Utilities Corporation was a challenge by
one group of natural gas companies located in the Texas Panhandle
to an order of the state's Railroad Commission that favored another.
Both groups produced "sweet" gas, which was relatively free of
sulfur and usable in heating and lighting, unlike high-sulfur
"sour" gas, which was usable only for the making of carbon black,
a residue left after burning gas, used in the production of paint
and rubber. 73 The first group owned or controlled pipelines
that permitted them to deliver gas directly from their wells to
consumers. Unlike these "integrated" companies, the second groupthe
"independents"had no access to pipelines. The only profitable
use of the gas they pumped was to "strip" it of its gasoline content
and sell the residue to producers of carbon black. In the process
they wasted a significant amount of the gas in the subterranean
field. 74
|
64 |
|
In 1935 the Texas
legislature prohibited the use of sweet gas for the production
of carbon black. It also authorized the Railroad Commission to
prorate the production of natural gas in order to (1) prevent
waste; or (2) adjust "the correlative rights and opportunities
of each owner of gas in a common reservoir." Citing this authority,
the commission ordered the integrated companies to produce significantly
below the levels required to meet their existing contracts with
their customers. The integrated companies could have easily met
their commitments with gas pumped from their own wells, but, thanks
to the order, they were forced to buy gas from the only other
readily available source, the independents. The integrated companies
were thus required to pay the independents for gas they would
not have needed but for the proration order.
75
|
65 |
|
Had the case
not involved an administrative body but merely a judicial or legislative
reallocation of property rights, Brandeis might not have objected.
After all, in International News Service v. Associated Press,
Brandeis had turned aside a natural rights claim to property in
the news with the observation that property rights were a creation
of the legal order. He even ventured the suggestion that a legislature
might declare newspapers businesses affected with a public interest.
And in Pennsylvania Coal Co. v. Mahon, Brandeis voted to
uphold a statute forbidding coal companies from causing the subsidence
of surface land, even when the companies had purchased the surface
owner's right of support. 76
|
66 |
|
But Thompson
reached the Court after Brandeis had become alarmed by the growth
of administrative power under the National Industrial Recovery
Act and other New Deal statutes. In his dissent in New State
Ice he had warned that such measures might make excessive
demands "upon the human intelligence and character of men," and
with his vote in Schechter Poultry Corp. v. United States
he struck at the public cartelization of industry. Finding in
Thompson that the public allocation of market share had
survived Schechter, he reacted with a vehemence more commonly
associated with one of the Four Horsemen. "Our law reports present
no more glaring instance of the taking of one man's property and
giving it to another," Brandeis thundered. 77
|
67 |
|
At first Brandeis
wanted to attack the order on statutory grounds and avoid a constitutional
holding, as had the district judge who originally heard the case.
Arguing that the statute authorized proration only to prevent
waste and that the commission had not shown that the integrated
companies had wasted gas, the judge concluded that the commission's
order was ultra vires and void. Such reasoning would permit
Brandeis to hamstring the Railroad Commission without explicitly
rebuking the Texas legislature.
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68 |
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Hurst would have
nothing of it. Presumably he preferred a statutory holding to
a constitutional one as the more easily surmountable barrier for
the administrative state, but he was convinced that there was
no factual support for the district judge's reasoning in the legislative
record. He showed Brandeis that the Texas legislature had authorized
the proration scheme to go beyond the common law in protecting
the independents' interest in subterranean gas and to compensate
them for revenue lost as a result of the ban on producing carbon
black. The proration scheme was "pa | |