Arizona republican., 1922-05-02
SUPREME COURT.
DECIDES PACKER
CONTROL ACT Of
LAST YEAR VALID
Court Rules Stock Yards
Are Public Utilities OF
National Character And
Subject To Regulations
TRepubIIcan A. r. Leased Wirel


WASHINGTON, May !. = The
packer and stockyard regulation act
of 1921, (which was put through con-
gresS largely through the efforts of
the agricultural bloc, was held con-
stitutional today by the supreme
court.
Declaring the stock yards "are not
a place of rest, or final destination,
but 4. throat through which the cur
rent flows and the transactions
which occur therein are only incident
to this current from the west TO the
east and from one state to another,
the court described the livestock
business conducted in the yards as
interstate in character.
Congress, in the act, "treat the
various stock yards of the country as
great national public utilities to pro-
mote the flow of commerce." Chief
Justice Taft stated in delivering the
opinion of the court, 'sand assumed
that they conduct a business affect
ed by a public use of a national
character, and subject to national
regulations. That it is business
wherein the power of regulation By
legislative action needs no discus
sion.'
The law was challenged by certain
the Chicago stock yards, who brought
separate suits in an effort to restrain
the secretary of agriculture from en-
forcing the law. The issue raised,
aside from the constitutional ques-
ton, was whether the business done
in the stock yards between the re-
ceipt of the livestock and its ship
ment Is a part of interstate COM
merce. The court answered that
question was one disposed of in the
Swift case, saying "the judgment in
that case gives clear and compTe-
hensive exposition which leaves to US
in this case. little but the obvious
application of the principles" he de-
clared. The court added that those
principles "have become fixed rule
of this court in the construction and
application Of the commerce clause"
Of the constitution
Chief Justice Taft said it was man
ifest that congress framed the pack
ers and stockyard act in keeping with
the Swift decision and that "what
congress had in mind primarily was
to prevent such conspiracies by SUI
pervision of the agencies which
would be likely to be employed in il"
There is no question now of the
intent of congress to punish consplra-
cies or restraint of trade in the stock
yards under the Sherman antitrust
law" he continued and certainly It
may provide regulations to prevent
their formation"
"It is primarily for congress to
consider and decide the fact of the
danger and meet it, he said. This
court certainly will not substitute its
judgment for that of congress in such
a matter unless the relation of the
subject to interstate commerce and
its effect upon it are clearly nom
existent"
Explaining that the commission
merchants at the stockyards sell on
commission, or brokerage, livestock
consigned to them, Chief Justice Taft
dismissed as without foundation their
contention that they are not engaged
in interstate commerce. He stated
that the principaie announced by the
court in the transportation act cases
in which federal jurisdiction was up
held over state commerce. where II is
so carried on as to work undue. un-
reasonable advantage or preference
in favor of persons or localities IN
state commerce, as against those IN
Interstate commerce, or an undue,
unjust or unreasonable discrlmlna-
tion against interstate commerce IL
self, indicated the extent to when
congress could assert jurisdiction
over state transactions that affect
interstate commerce under its pro-
lection.
Congress has found as an eVIl TO
be apprehended and to be prevenleu
by the act herein questioned, in the
use and control of stock yards and
the commission men to promote
packers monopoly Of interstate com
merce," said the chief justice. The
act finds and imports this injurious
direct effect of such agencies. upon
interstate commerce just as the IN
tent OF the conspiracy charged In
the indictment in the Swift case tied
together the parts of the scheme
there attacked and imported their
direct effect upon interstate COM
merce."