Tatum v. Wheeless, Unemployment Compensation Commission

• Decision Date: 10 January 1938
• Docket Number: 32936
• Court: Mississippi Supreme Court
• Parties: TATUM et al. v. WHEELESS et al., UNEMPLOYMENT COMPENSATION COMMISSION

178 So. 95

180 Miss. 800

TATUM et al. v. WHEELESS et al., UNEMPLOYMENT COMPENSATION COMMISSION

No. 32936

Supreme Court of Mississippi

January 10, 1938

Division B

1 STATES.

The Federal Social Security Act is not a coercion of the states which remain free to repeal their unemployment compensation laws and withdraw their funds from the federal trust fund (Social Security Act, 42 U.S.C. A., section 301 et seq..; section 904, 42 U.S.C. A., section 1104)

2 COURTS.

The state Supreme Court is not hound by a federal court's decision concerning the meaning or constitutionality of a state statute under the State Constitution.

3 STATES.

The state is sovereign over matters confided or reserved to it by the Tenth Amendment to the Federal Constitution (Const Miss, sections 6, 32; Const. U.S. Amend. 10).

4. STATES.

State sovereignty cannot be bargained away or surrendered by the Legislature (Const. Miss., sections 6, 32; Const. U.S. Amend. 10).

5. STATES.

Both the state and federal government have some Jurisdiction over the problem of unemployment, and each may provide suitable laws to mitigate or prevent it.

6. STATES. CONSTITUTIONAL LAW.

The Unemployment Compensation Law does not infringe any of the sovereign powers retained by the state and recited in the State Constitution (Laws 1936, chapter 176, as amended by Laws 1936, First Special Session, chapter 3; Const. Miss., section 6).

7. STATES. CONSTITUTIONAL LAW.

The State Constitution declaring that the state has sole power over its affairs does not prevent co-operation between the state and federal governments, where each acts within its appropriate sphere, and may at any time reassert its full control over the subject-matter (Const. Miss., section 6).

8. STATES.

The Federal Constitution recognize the state's right to negotiate with the federal government and to make arrangements with sister states affecting their respective powers, with the appropriate consent of Congress.

9. STATES.

The federal government cannot acquire from a state a power within it, unless delegated to the government.

10. STATES. CONSTITUTIONAL LAW.

The Federal Social Security Act may name a provision governing the grant of aid or advantages to a state, which is free to accept or reject it, provided it does not infringe the State Constitution or rights reserved in the Tenth Amendment (Social Security Act, 42 U.S.C. A., section 301 et seq.; Cons. Miss., section 32; Const. U.S. Amend. 10).

11. CONSTITUTIONAL LAW.

Under its police power, a state has large authority and discretion concerning the recognition of public needs, and may provide therefor by suitable legislation.

12. STATES. CONSTITUTIONAL LAW.

The Unemployment Compensation Law does not violate the State Constitution prohibiting appropriation bills which do not fix the maximum sum to be drawn from the treasury; the fund provided for toeing a trust fund, and not a fund to be placed in the state treasury, nor a fund for operating the state government (Laws 1936, chapter 176, as amended by Laws 1936, First Special Session, chapter 3; Const. Miss., section 63).

13. STATES. CONSTITUTIONAL LAW.

The Unemployment Compensation Law provides for a trust fund, to be withheld from the state treasury, and hence does not violate or come within the State Constitution governing the passage and duration of appropriation laws (Laws 1936, chapter 176, as amended by Laws 1936, First Special Session, chapter 3; Const. Miss., section 64).

14. STATES. CONSTITUTIONAL LAW.

The section of the State Constitution providing for semiannual statements showing the condition of the treasury refers to funds properly and legally confided to the state treasurer, and neither that section nor a preceding section providing for the office of treasurer is violated by the Unemployment Compensation Law providing for a trust fund to be placed by the treasurer in depositories and disbursed by him in the manner authorized (Laws 1936, chapter 176, as amended by Laws 1936, First Special Session, chapter 3; Const. Miss., sections 134, 137).

15. STATES.

Tire Legislature may impose a duty on the state treasurer in addition to the duties imposed by the State Constitution (Const. Miss., section 134).

16. CONSTITUTIONAL LAW. Master and Servant.

The Unemployment Compensation Law authorizing its suspension for not more than six months if the Governor finds that the Federal Social Security Act has been amended or repealed, or declared unconstitutional by the federal Supreme Court, thereby subjecting Mississippi employers to competitive disadvantage, is not objectionable as delegating legislative functions (Laws 1936, chapter 176, as amended by Laws 1936, First Special Session, chapter 3).

17. CONSTITUTIONAL LAW.

The Legislature cannot delegate the function of fixing the conditions under which an act may operate or cease, but may itself fix the conditions and confide to some suitable agency of the state the fact-finding function as to whether the conditions exist.

HON. V. J. STRICKER, Chancellor.

APPEAL from the chancery court of Hinds county HON. V. J. STRICKER, Chancellor.

Bill by W. S. F. Tatum and others against Leon Wheeless and others, constituting the Unemployment Compensation Commission, to recover taxes and enjoin the enforcement of the Mississippi Unemployment Compensation Law and the Federal Social Security Act. Judgment for defendants, and complainants appeal. Affirmed.

Affirmed.

Green, Green & Jackson, of Jackson, for appellants.

We recognize that as to the federal questions, the decisions in Stewart Machine Co. v. Davis, 81 L.Ed. 779; Helvring v. Davis, 81 L.Ed. 804, and Carmichael v. Southern Coal & Coke Co., 81 L.Ed. 811, are, by reason of being decisions of the Supreme Court of the United States, conclusive as to those federal questions there involved under the Federal Constitution, but the points herein relied upon are pressed under the State Constitution, whereasto, while this court has the greatest deference for the Supreme Court of the United States, it cannot forego its obligation to decide according to its convictions. Brien v. Williamson, 7 How. 14, declining to follow Groves v. Slaughter, 15 Peters 449, 10 L.Ed. 801.

Mississippi is a sovereign state, a member of an indissoluble union, with plenary power over unemployment, exclusive of national authority thereasto, but by the Federal Social Security Act this sovereignty is impaired and subordinated.

Farrington v. Tennesssee, 95 U.S. 679, 24 L.Ed. 558; Ashton v. Cameron County, 298 U.S. 531, 80 L.Ed. 1314; Worcester v. Georgia, 6 Peters 515, 80 L.Ed. 483; Texas v. White, 7 Wall. 700, 19 L.Ed. 227; Stewart Machine Co. v. Davis, 81 L.Ed. 779; Chamberlin v. Andrews, 286 N.Y.S. 261; U. S. v. Butler, 297 U.S. 1, 80 L.Ed. 477, 102 A. L. R. 914; Schechter Poultry Corp. v. U.S. 295 U.S. 542, 79 L.Ed. 1587; Railroad Retirement Board v. Alton, etc., Co., 295 U.S. 330, 79 L.Ed. 1468; Moor v. T. & N. O. R., 297 U.S. 101, 80 L.Ed. 509; Wilkinson v. Rahrer, 140 U.S. 554, 35 L.Ed. 574; U. S. v. Curtis Wright Export Corp., 81 L.Ed. 166; Carter v. Carter Coal Co., 298 U.S. 238, 80 L.Ed. 764; Hamner v. Dagenhart, 247 U.S. 251, 62 L.Ed. 1101, 3 A. L. R. 649; Bailey v. Drexel Furn. Co., 259 U.S. 38, 66 L.Ed. 820; Pennsylvania v. Mahon, 260 U.S. 393, 67 L.Ed. 322; Panama Refining Co. v. Ryan, 293 U.S. 388, 79 L.Ed. 446.

Mississippi's constitutional provisions as to Mississippi's public moneys are specifically overridden by Congress.

Sections 6, 33, 63, 64, 134, and 137, Mississippi's Constitution; Colbert v. State, 86 Miss. 769, 39 So. 65; Taylor v. Guy, 119 Miss. 357, 80 So. 786; I. I. & C. Case, 81 Miss. 193; Section 503, Federal Act, Title III, 42 U.S.C. A., page 119, Supp.; Sections 604, 1104, 42 U.S.C. A.; Carter v. Carter Coal Co., 298 U.S. 314, 80 L. E. d. 1191; Sec. 20, Chapter 176, Laws of Mississippi 1936; State Revenue Agent v. Tonella, 70 Miss. 701; Mississippi Law Journal, May 1937, page 416; Stewart Machine Co. v. Davis, 81 L.Ed. 799; Alcorn v. Hamer, 38 Miss. 652; Clark v. State, 169 Miss. 369, 152 So. 820; Board v. Davis, 59 So. 811, 102 Miss. 497.

That ordinarily deemed controlling is control purse string, and under this act (a) funds received immediately go to Federal Treasury; (b) funds are deposited in bank with no responsibility upon Secretary Treasury in case failure of bank; (c) Secretary authorized to invest fund in obligations of United States, wherein consider United States has impaired obligations, and such obligations may be sold at market price, wherein consider, Liberties selling below 90, and for such loss no compensation is provided, Mississippi being forced to take as Congress demands (Perry v. U.S. 294 U.S. 330, 79 L.Ed. 912); (d) Secretary is authorized to pay to any state agency such amount as it may duly requisition, etc., but no judicial machinery in Mississippi is adequate to make available, political pressure constituting substantially extent state rights; (e) entire program is one of trial and error, Congress mandatorily requiring all legislation thereasto determinable at pleasure; (f) there is no judicial review or appeal from action Federal Board; (g) as to payment of compensation Congress has so regulated as to subordinate welfare of the states as determined by their own legislatures; (h) State Legislature must authorize payment only through agencies approved by the Board; (i) Congress dictates time payments begin; (j) State Agency is powerless to defend its actions.

Stewart Machine Co. v. Davis, 81 L.Ed. 799; Ashton v Cameron County, 298 U.S. 531, 80 L.Ed. 1314; Alcorn v. Hamer, 38 Miss. 652; O'Donohue v. U.S. 289 U.S. 531, 77 L.Ed. 1361; U. S. v. Butler, 297 U.S. 1, 80 L.Ed. 477; McCullough v. Maryland, 4 Wheat. 316, 4 L.Ed. 579; ...