Warren sheaf. [volume] (Warren, Marshall County, Minn.) 1880-current, 1922-06-14
WIN
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Supreme Court Decision Marks Sweep.
ing Victory in Farm Bureau Fight
For Public Regulation
BY Neil II. Swanson

-
For Public Regulation -
a-I BY Neil H. Swanson
Minnesota farmers have won a de-
cisive battle in their fight for public
regulation of the. market where their
products are sold. ~
The state supreme court has handed
down decision upholding. the law by
which Minnesota declared the South
st. Paul livestock exchange to be an
open market. *
r The decision aftirms the right of the
people to exercise" the police powers
of their state government in regulat-
ing the livestock exchange. IAN as
ISOLATION of commission men, dealing
in livestock at public stockyards, may
be required to observe such reason
able regulations as the state sees fit
to impose in the exercise Of it's police
power the supreme court ruled.
Z The decision Of the high court was
handed down in the case of Grisim
against the. South st. Paul livestock
exchange. George Grisim, a member
of the exchange, traded with a nom
member in violation Of rules of the
exchange. The exchange attempted to
fine him $3.50 for breaking it's regula-
tons. MI. Grisim brought court ac-
ton against the exchange.
Under the ..open market act passed
by the state legislature last year as
part Of the Minnesota Farm Bureau
federation's legislative program, the
district court issued an order restrain
ing the exchange from collecting the
fine. On an appeal to the supreme
court; the decision of the lower court
was sustained. . -
The ruling Of the supreme court Oh
the open market law is one of the
most important decisions ever handed
down in Minnesota in a case directly
involving the farmers business inter
ests and public welfare. 1t upholds
one of the outstanding laws enacted
by the last legislature in response to
All overwhelming demand from Min
nesota farmers, through their county
farm bureaus, for recognition Of the
peoples right to supervise the markets
where their. food is bought and sold
Tt means that livestock exchange
cannot prevent its members from trad
ing with men who are not members
It means that livestock exchange
cannot prevent members from dealing
with a cooperative commission asso-
citation, established Oh the terminal
market by Minnesota farmers in an
effort to reduce the cost Of distrlbu'
ton and to stabilize prices in. the in,
terest of both producer and consumer
It means that an organized boycott
agency by a livestock exchange is I'M
lawful ~ ~
The Minnesota supreme court, in its
opinion, referred to court decisions IN
volving the Kansas City exchange
quoting a statement that" the traders
who were members of the exchange
had never been able to resist the
temptation to grasp the reins Of the
market and sit in the seat of mon
opoly." The record in the South st.
Paul case, the opinion goes on, dis
closes no abuses of the defendants
potential power over the livestock bus
mess at the South st. Paul market.
The exchange may, render useful SER
vices to the public by it's control over
it's members, the court stated, but
the power it yields over them is cap
able Of abuse"
Time and again, when the right OF
the people to supervise the markets
where their food is bought and sold
has been at issue, representatives Of
exchanges have argued that proposed
regulations would violate the ex-
changes contracts with the state, as
contained in corporate charters. Now
the supreme court has stated all con-
tracts relating to matters within the
police power Of the state are subject
to the exercise Of that power, because
s"the legislature cannot surrender 1t
OF. bipd the state not to exert i.
ss The supreme court also overthroWs
the exchange argument that the open
market act deprives exchange mem
,bers OF property without due process
OF law, by destroying the value Of
membership. Membe rship rights, the
high court ruled, may be property, but
they are property which is subject
to the police power Of the sta Is
Property rights are just as much cl1I y sub v
ject to the police power Of the people,
as exercised through the state, as to
the taxing power Of the state, the SUI
preme court held.
The decision s1lpho ling the open
market law Is an agricult ural triumph.
The first efnite result OF attacks on
the agric cultural marketing laws en-
acted in Minnesota Isl victory for the
farmers and for the publ is g
sweeping ri tory for the Minnesota
Farm Bureau ion. which Or
gained and lead the fight for open
markets and the right Of the people
to supervise the rketing Of the food
they eat. Z M Nj