Evening star., 1934-03-05
STATE CONTROL
OF MILK UPHELD
High Court Affirms New
York Law in 5-4 De-
CisiOn.
Nv the Associated Press

By the Associated Press.
In a decision having an important
bearing on the validity Of recovery
legislation, the Supreme Court today
upheld the right of a State to fix a
minimum price for milk
It sustained the New York milk
control law, under which the mini
mum price was set at 9 cents q quart
in an effort to promote the return Of
prosperity Justice Owen J. Roberts
delivered the opinion.
Administration Officials Jubilant.
Administration leaders received the
decision with jubilance. following
their encouragement by the recent
action of the high court in upholding
the Minnesota mortgage moratorium
act.
The Minnesota decision held that
the Government could suspend the
provisions Of a contract in an en1er-
gency. 1t granted an extension Of
time to redeem Minnesota property
which had been seized under fore
closure proceedings.
The milk decision was S to 4.
Justice Roberts reviewed the decline
in milk prices below production cost.
Roberts Calls Industry Important.
Emphasizing the importance of the
industry, he said it represented more
than 81 900 900 900 investment After
summarizing the need of maintaining
the milk supply. he said small deal
ers were able to cut prices below large
producers
The law was enacted to correct evils
which would not be eliminated by
the operation Of supply and demand,
he said
The agricultural adjustment act
gave the Secretary of Agriculture
power to fix the price of milk in vari-
GUS milk sheds and he has done so
IN number of instances.
Wisconsin, New Jersey, Connecticut,
Florida, Ohio and Vermont also have
such laws, and other States are con-
sidering SIMILAR action.
Attacked as Unconstitutional.
New York asserted it was clearly
within the police power of the State
to enact the emergency legislation
in 1893.
The attack on the law was based
on the contention that the exercise
OF police powers by the States was
subject to the Federal Constitution
and that such powers were not su-
perior to rights guaranteed by the
Federal Constitution against taking
property without due process Of law.
Leo Nebbia was arrested at Roch-
ester and convicted of violating the
order Of the Milk Control Board fix
ing the minimum price.
The New York courts sustained the
law as valid and Nebbia appealed to
the Supreme Court. New York State
officials joining him in asking the
highest tribunal to pass on the ques-
tion.
Denies Any Discrimination.
Roberts said the discrimination
Nebbia claimed had not been suls-
tanned as to whether he could buy
milk on fair basis with large dis
tributors.
After a discussion of police power
OF States to prevent use of property
against the public interest, Roberts
said regulation should not be arbitrary
and should have a reasonable regula-
ton" to the end sought.
Statutes creating monopolies In the
public interest, he said, in many in
stances have been sustained.
The legislation was aimed, he said,
to correct abuses found to exist In the
milk industry.
Chief Justice Concurs.
The court had sustained frequently,
he said, laws to prevent monopolies
which interfere with private contracts.
He added that regulation of prices
was only invalid when arbitrary, Ca
PRECIOUS and irrelevant.
Roberts was joined by Chief Justice
Hughes and Justices Brandeis, Stone
and Cardozo In sustaining the legis-
lation.
Justice McReynolds delivered the
dissenting opinion in which Justices
Van Devanter, Sutherland and But
Ter joined.
McReynolds said a mans private
business, pursued honestly and In an
ordinary way, is not Clothed with q
public interest" and that a Legisla-
ture, therefore, had no right to take
control.
The milk industry is not a public
utility. Roberts said, but added that
business can be regulated in the in.
terest Of the public. He contended
no constitutional provision prohibited
State in the exercise of its police
power from regulating prices in the
public interest.