Tatum v. Wheeless

178 So. 95, 180 Miss. 800, 1938 Miss. LEXIS 20
CourtMississippi Supreme Court
DecidedJanuary 10, 1938
DocketNo. 32936.
StatusPublished
Cited by31 cases

This text of 178 So. 95 (Tatum v. Wheeless) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tatum v. Wheeless, 178 So. 95, 180 Miss. 800, 1938 Miss. LEXIS 20 (Mich. 1938).

Opinion

*812 Ethridge, P. J.,

delivered the opinion of the court.

The appellants were complainants in the court below, and filed a bill herein, challenging the validity of the Mississippi Unemployment Compensation Law, chapter 176, Laws of 1936, and amendments, chapter 3 of the Special Session Laws of 1936, First Session, and the Social Security Act of the United States, 42 U. S. C. A., section 301 et seq., upon the subject of Unemployment Compensation; and for the recovery of specific taxes paid by .the complainant to the defendant for the period beginning April 1, 1936, ending June 30, 1936; July 1, *813 1936, to September 30, 1936; and from October 1, 1936, to December 31, 1936; and for an injunction to prevent future enforcement of tbe acts.

Tbe appellants, complainants below, are engaged in manufacturing timber into lumber, and have been so engaged for a number of years, employing in the conduct of their business more than 8 employees, to-wit, about 350. The bill sets out the approximate amount of wages paid to these employees, and alleges that it has a right to conduct the business, and a right to contract with employees, as it has heretofore done; that such right is property, which right the appellant is entitled to exercise without let or hindrance, under the Constitution; that it has contributed, under the National Security Act, the sum named in the bill; that the employees of appellant are of full age, competent to contract; and that “each employe must return to the operation an amount in excess of the wages by him therefrom taken; otherwise he would be a profitless servant and ultimately destroy the operation.” They further allege that in making contracts of employment such contracts were satisfactory to both employer and employee; and set up many other allegations not necessary to state in full herein, but seeking to challenge the constitutional validity of the act of the Mississippi Legislature, and of the Social Security Act of the federal government, which co-operates with the Mississippi .Unemployment Compensation Act in providing a fund to pay persons and employees of persons or corporations employing in excess of 8 persons.

Subsequent to the filing of the suit the United States Supreme Court decided a case in which it held that the Federal Social Security Act was constitutional, and that state acts co-operating with the Federal Social Security Act involved in its decision did not violate any provision of the Federal Constitution. See Carmichael, Atty.-Gen., v. Southern Coal & Coke Co., 301 U. S. 495, 57 S. Ct. 868, 81 L. Ed. 1245, 109 A. L. R. 1327; Steward Ma *814 chine Co. v. Davis, 301 U. S. 548, 57 S. Ct. 883, 81 L. Ed. 1279, 109 A. L. R. 1293, and Helvering v. Davis, 301 U. S. 619, 57 S. Ct. 904, 81 L. Ed. 1307, 109 A. L. R. 1319. The appellant, in his brief, concedes that these decisions establish the constitutionality of the Mississippi Unemployment Compensation Act, in so far as any question under the Federal Constitution is concerned; but contends that the act is in conflict with a number of provisions of the Mississippi State Constitution of 1890.

The Legislature, in enacting this law, laid down certain criteria as to the policy of the state in the matter, the purpose of the law, and various provisions for the collection of funds from employers to carry out its requirements, as well as the machinery for its administration in the payment of benefits accruing thereunder. In chapter 3 of the Special Laws of 1936, First Session, amending section 2 of the original act, among the purposes stated by the Legislature is the following:

“As a guide to the interpretation and application of this act, the public policy of this state is declared to be as follows: Economic insecurity due to unemployment is a serious menace to the health, morals and welfare of the people of this state. Involuntary unemployment is therefore a subject of general interest and concern which requires appropriate action by the legislature to prevent its spread and to lighten its burden which now so often falls with crushing force upon the unemployed worker and his family. The achievement of social security requires protection against this greatest hazard of our economic life. This can be provided by encouraging employers to provide more stable employment and by the systematic accumulation of funds during periods of employment to provide benefits for periods of unemployment, thus maintaining purchasing power and limiting the serious social consequences of poor relief assistance. The legislature, therefore, declares that in its considered judgment the public good, and the general welfare of the citizens of this state require the enactment of this *815 measure, under the police powers of the state, for the compulsory setting aside of unemployment reserves to be used for the benefit of persons unemployed through no fault of their own.
“(b) The legislature hereby finds and declares that the existence and continued operation of a federal tax 'upon employers, against which some portion of the contributions required under this act may be credited, will protect Mississippi employers from undue disadvantages in their competition with employers in other states. If at any time, upon a formal complaint to the governor, he shall find that title IX of the social security act has been amended or repealed by congress or has been held unconstitutional by the supreme court of the United States, and that, as a result thereof, the provisions of this act requiring Mississippi employers to pay contributions will subject them to a serious -competitive disadvantage in relation to employers in other states, he shall publish such findings and proclaim that the operation of the provisions of this act requiring the payment of contributions and benefits, shall be suspended for a period of not more than six months. The commission shall thereupon requisition from the unemployment trust fund all moneys therein standing to its credit, and shall direct the state treasurer to deposit such moneys, together with any other moneys in the unemployment compensation fund, as a special fund in any banks or public depositories in this state in which general funds of the state may be deposited.
“In all other eases, and unless the governor shall issue such proclamation, this act shall remain in full force and effect.
“If within the aforesaid six months’ period the governor shall find that other federal legislation has been enacted which avoids the competitive disadvantage herein described, he shall forthwith publicly so proclaim, and upon the date of such proclamation, the provisions of this act requiring the payment of contributions and bene *816 fits shall again become fully operative as of the date of such suspension with the same effect as if such suspension had not occurred.

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Bluebook (online)
178 So. 95, 180 Miss. 800, 1938 Miss. LEXIS 20, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tatum-v-wheeless-miss-1938.