The Hope pioneer., 1921-05-26
STATE GRADING
ACT SET ASIDE
Judge Garland of Circuit Court
OF Appeals Holds N. D.
Grain Law Invalid.
CONFLICT IS ALLEGED
Decision Of Judge Amidon Is Reversed
In Holding That State Grading
Act Conflicts With Federal
Shipping Laws.


st. Paul.-The grain grading law of
North Dakota, passed by the 1919
legislature Of that state, is declared
invalid in decision handed down by
Judge John E. Garland, Washington,
in the United States circuit court of
appeals here. 1t was held the law
contlicted with the federal grain
grades and that it imposed burden
on interstate commerce.
The court reversed a. decision of
Federal Judge Charles Il. Amidon of
Fargo, N. D., holding the law constitu-
tional. Judge Amidon dismissed an
application for an injunction sought by
the Farmers Grain company of Emb-
den, N. d., cooperative concern, to
restrain state authorities from enforc-
ing the law and prosecuting the COM
pany, which refused to take out
state license. The company purchased
grain from it's members, shipping it
out of the state, generally to Mime
apolis or Duluth.
Laws Must Be Uniform.
"Any attempt" said Judge Carland's
decision, "to regulate interstate COM
merce by the state of North Dakota is
in direct conflict with the United
States grain standards act, wherein
congress sought to establish uniform
system for the inspecting and grading
of such grain moving in interstate
oo&c ul,t %o ho
forced and cannot be without con-
fusion and embarrassment"
'The federal law provides that the
secretary Of agriculture shall issue
licenses to state. inspectors where
there is state inspection, but it also
provides that no licenses for inspect
ing or grading of grain shall be issued
to persons financially or otherwise in
terested in any grain elevator or
warehouse storing grain. The state
law provided that licenses shall be
issued only to those selling or grading
grain and makes it misdemeanor for
any one not having n license to buy
any grain. This, it was held, brought
the two laws into direct conflict.
Much of Wheat Shipped Out.
A temporary injunction to restrain
the state office was issued May 1, 1920
by Federal Judge Page Morris.
Judge Garland, in his opinion, states
that from the evidence it appears that
from 1OO,OOO,OOO to 156,OOO,OOO bushels
Of spring wheat are produced annually
in North Dakota, and that about so
per cent of it is bought for shipment
and actually shipped to terminal mar
kets outside the state of North Da-
kota, principally to Minneapolis and
Duluth, and that approximately 1900
| elevators have been built, connected
with railway tracks for shipment Of
grain out of the state.
Three Questions Answered.
Judge Garland brought the whole
matter down to three questions:
First: Is the purchase of grain in
North Dakota for shipment out of the
state part of the interstate COM
merce involved in the shipment?
Judge Garland answers this in the
affirmative, although the trial court
uelu OLUeFWlSe.
Second: Does Chapter 13S session
laws, North Dakota, 1919, impose a
direct and unreasonable burden upon
interstate comperce?
Judge Garland held that it does.
Under the state law, the inspector is
instructed to establish margins Of
| profit. He may establish margin by
which the buyer of wheat can make
profit or he may not. The state
inspector controls the price wheat buy.
ers shall pay. The word reasonable"
does not protect because. it may take
the courts year or two to decide
what margin is reasonable in a con-
| tinually changing wheat market.
Third: Is the North Dakota law in
| conflict with the United States grains
standards act to such an extent as to
render it void?
The answer is: "Ahy attempt to
regulate interstate commerce by the
state of North Dakota is in direct
conflict with the grain standards act,
uniform system for the inspection aad
grading of such grain moving in inter-
state commerce. Both acts ought not
to be enforced and cannot be without
confusion and embarrassment"
Case May Be Appealed.
It is the present belief of w. G.
Palmer of the North Dakota Agricul-
tural college, head of the grain grading
department, that the case will be car
ried to the United States supreme
court.
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