Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-05-02
PACKER BUSINESS IS
COMMERCE
Songress Intended TO Prevent
Such Conspiracics i'll Franz
ass ing Law, Taft Holds.
DEFENSE WITHOUT GROUND
Yards Are Not Final Resting Plnce.
~ hut Trough Through Which
t~Flovr tho Current From West
40 Ensf,
tBy Associated Press. !

sl-p tBS Associated PRESS
s. ss'W.tSHINGTON. May 1.-The Packer
md Stock Yard regulation act oi
1921. which was pu, through Con
Eress largely through the efforts o;
the Agricultural Bloc. was held con
stitutional today by the supreme
Court.
Declaring the stock yards ARE no,
n-placc OF rest or final destination
but n trough through which the cur.
rent flows, and the transactions which
occur therein are only incident To this
current from the west 10 the east
and from ono State to another" the
court described The live stock bust
ness conducted III The yards as inter
STATE in character.
Congress IN the act treats the Va
iiouS stock yards OF the country as
great national public utilities to pro-
mote the flow OF commerce. Chief
Insticc Taft stated in delivering the
opinion OF the court. and assumed
that they conduct a business affected
by q public use OF a national charac.
ter and subject To national rcgula
lions. That Il is a business within
the power of regulation by lcgisia :
tive action needs no discussion"
Challenged by Dealers.
The law was challenged 10y certain
DnmInission merchants and dealers in
the Chicago stock yards. who
brought separate suits in an effort 10
restrain the Secretary OF Agriculture
from enforcing the law. The issue
1-Ttsed, aside from the constitutions!
question. was whether the bushes
done 10 the stock yards between the
receipts OF the live stock and lis ship
5ent is a part OF Interstate Commerce.
Thc court answered that the question
was disposed OF in the Swift case
saying the judgment in that case
gives clearSand comprehensive ex-
position (which leaves TO us In this
case little. but the obvious applica-
ton OF the principles there declared,
The court added that those principles
have become fixed rules OF this cour,
In the construction and application OF
the commerce clause" OF the Con.
etitution.
:, In Keeping With Swift Cn>c.
Chic! Justice TAFT said /, was
manifest that Congress framed the
Packer and Stock Yard act in keep.
tnE with the Swift decision and tina;
what Congress had in mind primarily
was TO prevent such conspracics by
supervision OF the agencies which
would bc likely to be employed IN
IL. There is no question now oi
Tue authority OF Congress to punish
tonspirac!es for restraint of trade In
the stock yards under the Sherman
antitrust law" he continued, and
certainly 1t may provide regulations
10 prevent their formation"
The opinion reviewed at length tho
frequent court proceedings involv.
tnE transactions at the Chicago
CLOCK yards against the packers and
announced that whatever amounts
10 more or less constant practice and
threatens TO obstruct or unduly &c
burden the freedom OF interstate com
mercc Is within the regulatory pow
er or Congress under the commerce
clause"
For Congress to Meet Danger.
ut is primarily for Congress to
consider and decide the fact of tho
danger and meet it," lie continued
'iFhis court Will certainly not sub
stitute its judgment for that OF Con
'treSs in such Il matter. unless the
relations OF the subject 10 inter
state commerce and its effect upon
it.arc clearly noncxistent."
Explaining that the commission
merchants at the STOCK yards sell OF
commission or brokerage live stock
consigned tn them. chief Justice Taft
dismissed as without foundation their
contention that they arc not engaged
in-intcrStatc commerce. He stated
mat the principle announced by the
court IN the Transportation act cases
IN which Federal Jurisdiction was up-
heid over state commerce where IL
Is S" carried on as To work undue
ucrI Bile advantage or preference
In favor OF persons or localities In
state commerce - against those in
interstate commerce. or an undue
UNJUST or unreasonable discriluina-
non against Interstate commerce il
self, indicated the extent TO which
congress could effect Jurisdiction over
state transaction that affect inter
slale commerce under its protection.
McReynoids Dis>ents.
Congress has found AS an evil &c
he prevented by the act mere in cues.
ton, In the use and control Of stock
yards and the commission men Il
promote packers monopoly of in.
terstate commerce." said the Chiel
Justice. The act finds and s.uport,
This injurious direct effect Of such
agencies upon interstate commerce
Just as the intent OF the conspirac,
charged In the Indictment in IN,
swift case tied together the parts u
the scheme Their. attacked and inn
ported their dircc, effect upon inter
state commerce"
Justice Day did no, par,!cinat. =,
inc case, and Justice McReynolds ais
scented.