, 1935-07-21
KennerLy's Decision Strips
Citrus Control Committee
Of Say in Fruit Shipments

clared that these conditions In the
basic industry OF agriculture have
affected transaction in agricultural
commodities with q national pub
lie interest, have burdened and OBJ
structed the normal currents Of COM
merce In such commodities. and
render imperative the immediate
enactment of this chapter.
Section 602. Declaration OF pol
icy; establishment OF base periods
for prices. 1t is hereby declared to
be the policy Of Congress
I'D To establish and maintain
such balance between the produc-
ton and consumption OF agricul-
tural commodities, and such mar
keting conditions therefor. as viii
re-establiSh prices to farmers At a
level that viii give agricultural
commodities a purchasing power
with respect to articles that farm
ers buy. equivalent to the purchaS-
ing power Of agricultural commod-
test. except tobacco, shall be the
pre-war period, Aug l909-July 1914.
In the case OF tobacco the base
period shall be the postwar period
Aug. 19i9-July 1923.
"'C2) To approve such equality
OF purchasing power by gradual
correction Of the present inequali-
ties therein at aS rapid a rate as
Is deemed feasible in view Of the
current consumptive demand IN
domestic and foreign markets.
"'C3) To protect the consumers
interest by readjusting farm pro-
duction at such level as will not
Increase the percentage of the con-
sumerS' retail expenditure FOR agrt-
cultural commodities, or products
derived therefrom. which Is re-
turned TO the farmers, above the
percentage which was returned TO
the farmer In the pre-war period,
Aug. l909-July 1914.
Powers Listed
section 500. General powers OF
Secretary In order to effectuate
the declared policy. the Secretary
OF Agriculture shall have power
"'(3-LicenSing professors; re-
vocation Of licenses; penalty for
handling without license. To issue
licenses permitting professors, as
SociationS Of producers and others
70 engage in the handling in the
current OF interstate or foreign
commerce. OF any agricultural COM
modify or product thereof, or any
COMPETING commodity or product
thereof. n licenses shall be sub
ject 10 such terms and conditions,
not in conflict with existing Acts
OF Congress or regulation pursuant
thereto. or may be necessary TO
eliminate unfair practices or
charges that prevent or tend 20
prevent the effectuation Of the de-
clared policy and the restoration
OF normal economic conditions IN
the marketing Of such commodi-
ties or products and the financing
thereof. The Secretary or Agr1cul-
ture may suspend or revoke any
such license, after due notice and
opportunity for hearing, for viola
tons OF the terms or conditions
thereof. Any order OF the Secretary
suspending or revoking any such
license shall be final II in accord
ance with law. Any such person
engaging in such handling without
n license as required by the Secre-
tary under this section, shall be
subject to q fine OF not more than
81 900 for each day during which
violation continues
Defendants say that without
laying down a policy or establish
ing standards, Congress has by
the quoted provisions Of such act.
conferred. or attempted to confer
upon the Secretary OF Agriculture
the duties and power TO fix the
terms and conditions Of such IL
cense. and that such act Is, there
fore. to that extent. constitutional
ly invalid, and that defendants
business may not be 80 controlled
hereunder.
AT the time OF the hearing OF
plaintiffs application for prelimin-
ary Injunction herein, standing
upon the rule laid down in Pana-
ma Refining Co. VS.. Ryan, 293 y. y.
3B8. 70 l.. Ed. adv. 223). raised the
same question. but preliminary in
junction was denied upon other
considerations. Since that time. the
Supreme Court. in ". 8. rs. Schech-
ter. is considering a similar act OF
Congress. has. with great clearnesS,
again laid down the rule, I think
what Is said there Is controlling
here. and that much quoted provi-
sions Of such act are constitution
ally invalid. and that plaintiff may
not enforce same against defend
ants.
1t Is not necessary to determine
the other questions raised.