Whether the President could seize and operate private steel mills to avert a strike without congressional authorization.
Holding
No. The seizure order exceeded the President’s constitutional authority.
Reasoning
Presidential power to seize the mills had to come from an act of Congress or from the Constitution. No statute authorized this seizure: the conditions in existing seizure statutes were not met, and Congress had rejected seizure as a general remedy for emergency labor disputes.
The Commander in Chief power did not give the President authority to take private property to prevent a domestic labor dispute from stopping production. Supplying the armed forces was important, but that concern did not turn the seizure into a military command.
The duty to faithfully execute the laws did not permit the President to make them. The order set a policy for taking and operating the mills and allowed the Secretary of Commerce to prescribe employment terms. Those were legislative choices for Congress, not rules carrying out a congressional policy.
The national emergency did not change that allocation of power. Congress retained the authority to decide whether to authorize a seizure, even when swift action seemed necessary.