Document: 331 U.S. 218 67 S.Ct. 1146 91 L.Ed. 1447 RICE et al.v.SANTA FE ELEVATOR CORPORATION al. ILLINOIS COMMERCE COMMISSION v. SAME. Nos. 470 and 472. Argued Feb. 13, 14, 1947. Decided May 5, [Syllabus from pages 218-220 intentionally omitted] Mr. William C. Wines, of Chicago, Ill., for petitioner Illinois Commerce Commission. Lee A. Freeman, Rice. Leo F. Tierney, respondents. Justice DOUGLAS delivered the opinion Court. 1 Respondents in these two cases are warehousemen engaged business operating public warehouses storage grain Illinois. Their operated under licenses issued by Secretary Agriculture pursuant to United States Warehouse Act, 39 Stat. 486, as amended, 7 U.S.C. § 241 seq., U.S.C.A. seq. The Rice partnership, one petitioners, is an owner, shipper, dealer a customer Commission, another petitioner, has certain regulatory jurisdiction, which we will later refer, over other utility companies. 2 In 1944 filed complaint with charging respondents1 maintaining unjust, unreasonable, excessive rates charges contrary Public Utilities Ill.Rev.Stats.1945, ch. 111 2/3. It charged them discrimination favor Federal Government its agencies against customers, Act Grain 114, 189 alleged that respondents were both dealers reason those dual conflicting positions had received undue preferences advantages detriment petitioners customers respondents,2 all violation provisions or Constitution 1870, Article XIII, Smith-Hurd Stats. having failed provide reasonable, safe, adequate warehouse service facilities, issuing securities, abandoning service, entering into various contracts their affiliates without prior approval Commission; rendering warehousing services published rates; state license; mixing grains different grades—all Act. Among remedies sought fixing just, non-discriminatory rates, prohibition unlawful discriminatory practices, establishment safe assessment penalties violaions Il linois law, including cancellation licenses. 3 moved dismiss on ground superseded authority Commission regulate manner complaint. denied motion set cause hearing merits. Thereupon brought suits District Court enjoin further proceedings before Attorney General instituting any enforce order matter. Motions granted. On appeal Circuit Appeals reversed, holding regulation matters presented petitioners' complaint.3 Cir., 156 F.2d 33. here petitions writs certiorari granted because importance questions presented. 4 originally enacted 1916 (39 486), made federal this field subservient regulation. provided 29 'nothing act shall be construed conflict with, authorize way impair limit effect operation laws State relating warehouses, * *.' And 6 required applicant license bond 'to secure faithful performance his obligations warehouseman' well law. 5 1931 Congress amended 46 1463. Section was amended4 although 'is authorized cooperate officials enforcement warehousemen', personnel, 'the power, conferred upon exclusive respect persons securing hereunder so long said remains effect.' omit requirement conditioned compliance requirements First. chief basis treated follows law Act: (1) Just reasonable rates. respondents' unjust unreasonable. Under statute must just reasonable; after may fix meet standard. §§ 32, 36, 41, warehousemen5 condition they conform rules regulations prescribed thereunder.6 4, 9. Every receipt licensed disclose rate charges.' 18(e). Before file proposed Secretary. Reg. 3. He also changes making effective. Id. Rates 'unreasonable exorbitant' prohibited. may, hearing, suspend revoke if exorbitant have been rendered.' 25; 2, 7. 8 (2) Discrimination. alleges discriminate granting latter preferential power referred, includes eliminate see Gran 15. requires publication disclosure warehousemen's seen. 13 makes it duty warehousean rece ive agricultural products 'in usual ordinary course business, between desiring avail themselves facilities.' 25 warehouseman 'for failure comply provision 9 (3) Dual position warehousemen. violations acts storing dealing own while public. See Hannah People, ex rel. General, 198 Ill. 77, 64 N.E. 776. every 'if either solely jointly common others, fact such ownership 18(i). addition, receipts contain event relationship existing depositor not strictly disinterested custodianship, statement setting forth actual relationship. *' 1(a)(3). Moreover, 5a(7) Commodity Exchange 49 1491, 1498, 7a(7), provides 'shall accepted satisfaction futures contract notwithstanding enjoys privileges than 10 (4) Mixing high quality inferior owned respondents, delay loading grain. practices7 part abuses flowing They violate rule supra, prohibit preference advantage person disallow prejudice disadvantage person. 38. 17. seen, receive storage' product 'without 15 inspection grading fungible inspectors. 16 permits agreement custom' mingle 'of same kind grade.' likewise prohibits grades.'8 30 fine imprisonment who fraudulently classifies, grades, weighs stored 21 absence some lawful excuse deliver unnecessary delay' proper demand. 11 (5) Sacrificing rebating charges, retaining desirable transit tonnage, utilizing preferred space. These complaint,9 manifestations evils being t violat principles announced Central Elevator Co. People Moloney, 174 203, 208—209, 51 254, 256, 43 L.R.A. 658. practices outlawed 38 already mentioned. hand, 'receive 13. 12 (6) Maintenance unsafe inadequate elevators; inefficient service. result fire insurance premiums become prohibitive; owners suffered damages due deterioration broad powers maintenance facilities efficient (§§ 49, Act) additions, extensions, repairs, improvements, changes. Id., 50. By Agricultural determine whether applied suitable grants prescribe duties 'with care responsibility stored' warehouses.10 No found 'not age grain.' 5. exercise 'such regard custody reasonably careful owner would circumstances conditions.' 8. keep 'his clean at times free straw, rubbish, accumulations materials increase hazard interfere handling (7) Operating license. lawfully operate gives issue terms conditions specified. 3, 14 (8) Abandonment abandoned consent commission. Approval abandon discontinue required. 49a, Licenses terminate therein 9) provided, accordance thereunder regulations. grounds revocation specified ceasing conduct warehouse. (9) Failure publish schedules; filing publishing schedules. matters, complaint, regulated 33 35 schedules issues; made; current schedule posted conspicuous place principal office where 3; 6. As 'power, authority' Ac 'exclusiv e license' effect. argued should mean subjects Secretary's touches agency, though scope scheme even there no necessary what agency do. argue since area taken limited, rest occupied States; give unless precise coincidence irreconcilable two. 17 clear interstate foreign commerce domain, Hastings, 296 188, 56 218, 80 148, chooses, take unto itself (see New York R. & Pennsylvania Co., 271 124, 447, 70 865), share task States, adopt policy Prudential Ins. Benjamin, 328 408, 430—436, 66 1142, 1155—1159. question each case purpose was. 18 legislated traditionally occupied. Munn Illinois, 94 113, 24 77; Davies Bowles, 321 144, 148—149, 474, 477, 478, 88 635. So start assumption historic police manifest Congress. Napier Atlantic Coast Line 272 605, 611, 47 207, 209, 71 432; Allen-Bradley Local Wisconsin Employment Relations Board, 315 740, 749, 62 820, 825, 86 1154. Such evidenced several ways. pervasive make inference left room supplement it. Service 250 566, 569, 40 37, 1142; Cloverleaf Butter Patterson, 786, 491, 754. Or touch interest dominant system assumed preclude subject. Hines Davidowitz, 312 52, 61 399, 85 581. Likewise, object obtained character imposed reveal purpose. Southern Railroad 236 439, 304, 59 661; Charleston W.C.R. Varnville Furniture 237 597, 715, 1137, Ann.Cas.1916D, 333; Winfield, 244 147, 37 546, 1045, L.R.A.1918C, Ann.Cas.1917D, 1139; supra. produce inconsistent objective statute. Hill Florida, 325 538, 65 1373, 89 1782. often perplexing precluded action choice selective measures undisturbed except collide. Townsend Yeomans, 301 441, 57 842, 81 1210; Kelly Washington, 302 1, 58 87, 82 South Carolina Highway Dept. Barnwell Bros., 303 177, 625, 510, 734; Union Brokerage Jensen, 322 202, 967, 1227, 152 A.L.R. 1072. 19 A forceful argument view allowed prevented cting ny covered Rice's does runs counter policy. That say, harmonious 'measure control' imposes. Compress McLean, 291 17, 23, 54 267, 269, 78 622. That, said, can only determined acted. 20 illustrated cannot. sure, unreasonable made. If fixes fall. But until known do, shown. indeed reduces presumed, likely exist. Another illustration concerns pointed out disclosure; more basic uprooting practice disclosure. relates connection rebate retention utilization All discriminations persons. What promulgates requires, go ahead, might strengthen bolster dilute, oppose reasoning could nine summarized, including, perhaps, At first blush construction great plausibility. preserves intact regulation, leaves protect local interests, strikes down dilutes diminishes program. 22 special peculiar history indicates us thwart adopted when 1931. Prior time, out, express unfavorable undertook change done language resulted Act's subservience, strong systems affected collided reinforcement laws' Cf. page 972, did choose simple expedient. went added mandatory words persons' original requiring licensees deleted. 23 actions explained Committee Reports. previous subservience militated 'against full value collateral purposes'.11 S.Rep.No.1775, 71st Cong., 3d Sess., p. 2. amendment followed 'naturally' revision 29. designed independent 'place bottom.' While need he chose it, then 'be responsible act.' Warehousemen, 'then permitted interference agency.' pp. 2—3. Or, stated House Committee, 'independent legislation subject.' H.R.Rep.No.2314, 70th 2d 4. language. unambiguous meant deletion regulating significance attached wording amendments 29, read light Reports, say plain licensee do acts'; cannot (so far activities concerned) subject alone.12 paramount conflict. remedied difficulties encountered administration terminating First Iowa Hydro-Electric Co-op. Power 152, 906. Supreme Dakota, electing come serve but master, agency. re Farmers Cooperative Ass'n, 69 S.D. N.W.2d 557. cooperation undertake harmonizing exclusively 26 formulated numerous phases business.13 control through issuance, suspension, disclosure, general prohibitions Unsafe protected applicants suitable. prohibited oters. ea ch listed above legislated. others; complied requirement, additional things regulations, conflicted demanded him We recently noted unequivocally intends own. Bethlehem Steel Corp. Labor 330 767, 1026. fields amendments. 27 Thus, eliminating substituting achieve 'fair uniform practices' which, 622, 28 test, therefore, matter assets right is, prevails modest, less plan State. test beyond reach declared therefore virtue Supremacy Clause. U.S.Const., Art. VI, Cl. Second. There mentioned, management, construction, engineering, supply, financial affiliates. 8a 31 leases utilities. 32 issuance securities payable periods twelve months date. measures, prevent unwarranted drains fnds creation unsound structures affect ability render 34 contains expressly three matters. told attempt jurisdiction them. possibilities repugnancy conjured up. stated, example, offer addition warehouse, financing require disapproval additions. time consider asserted conflicts Acts arise. Any objections stage premature. foreclosed adopting Into moved. nothing pre-empted areas. 7, ambiguous situations refused hold Penn Dairies, Inc. Milk Control 318 261, 63 617, 87 748. accordingly affirm reverse judgment remand conformity opinion. 36 ordered. Affirmed reversed part. FRANKFURTER, whom RUTLEDGE concurs, dissenting. More seventy years ago upheld despite relation elevators commerce. Budd York, 143 517, 468, 247. much our economic political fabric, important deemed remain force, Congress, 1916, passed (Part C August 11, 446, subordinate Laws. now holds Amendment 1463, nullified extensive network operation, nowise thereby uproots vast body enactments collide licensing Agriculture. Amendment, decision turns deposited exclusion I understand, my view, once chooses obtain license, quit amenability such. read, violence language, displace warehousing, merely occurrence very deal. This leave impinging limited functions Government. Suh vi ew. Court's conclusion admixture views. Today's decision, apparently, altogether federally nor yet laws, harmoniously function To thinking, justification conceding undefined equally justifies leaving given facts dispute. Rice, shipper grain, respondent Utility ((Ill.Rev.Stats.1945, c. 2/3), (Ill.Rev.Stats.1945, 293—326(a))), XIII Constitution. include exaction appropriate improper interests graindealer warehouseman. placed State's entirely superseded. Upon denial injunction proceedings. ruling erred injunction. 41 orders enjoined, knowledge exact decided authoritative voice her survive controlling heretofore acted wise 'assume advance construe bring Congress.' 746, 824, suit was, event, should, familiar principles, ordered held claim authoritatively ascertained courts, perhaps avoiding legislation. Compare series Thompson Magnolia Petroleum 309 60 628, 84 876, Spector Motor McLaughlin, 323 101, 101. 42 merits controversy problem freedom exercised constitutional administered closely defined authority. Underlying concerned enterprise radiations bounds, lose relations conducted. judicially adjusting Nation State, clearly preemption doubt separate wholly national protection. considerations account striking balance, acknowledged platonically, indicated Corporation 76, Term, Suffice federalism, practical favors survival reserved intimate concern swept boards authority, unmistakable 44 Assuming covers relief suggested device Indeed, seems admitted effectuate, least aspects, Report subject' (H.Rep. No. 2314, 4), find insulated touched becomes untouchable neither paper spheres rate-fixing inferentially deprived she 45 agree. holder assumption, submit, put end tried machinery putting place. rather permit established ascertaining practicalities government converging collaboration governments construing bent avoidance possible concert. section confers 'exclusive' authorizes 1465. general, affirmative remotely comparable initiated legislation, written Uniform Receipts mind. Neither marks departure design fit establish compulsory, uniform, nation-wide essential links chain Nor formulate system. Even aspect, apply affecting compulsion offered desired privilege licensee. Anyone wished continue controls. licese compelled perform positive duties. Except fraud, sanction disobedience few loss content allow similar seek not. perquisites incident wanted persuasively indicate others For instance, really expressed clarity forbid thus deprive long-standing assume? Is consistent interplay assume imposing minimum inferential sterilization optional restricted maximum? fair refer effectively exercise. substantively speaking, includes, potential within active range administration, simply dealt small conditionally. 48 anything destructive consequences longstanding enactments. When passed, emphasized subordinating forty aspect vested An impressively large number fixed finds legislative wipe holders eliminated subservicence purposes aimed voluntary laws,' Report, words, interpreted implicit, roughshod decimation touched, howsoever meagerly indirectly, consonant federal-state dominating controls laws.' removal entrusted subordination action. saving rendered futile ought whose continuing force hamper exercising gave him. Evidence lacking felt correction inadequacy revealed regarding withdrawal non-conflicting amendatory undermining clearest expression persuade wiped Stae fixation deeply rooted laws. mischief directed, policy, structure entirety necessitate disregard delicate balance federal-State attributed 50 fundamental designed, normally reflected reports appropriations administering show substantial consequence Amendment. preceding immediately following were: 1929 (45 539, 563)...................... $240,320 52 1930 1189, 1214).................... 256,000 53 (46 392, 419)...................... 241,000 1932 1242, 1270).................... 312,200 55 1933 (47 609, 638)...................... 313,020 1934 1432, 1460).................... 296,220 1935 (48 467, 494)...................... 271,383* seem unmindful far-reaching imputed Agriculture, Chief Bureau Economics, Marketing Service, 1931, administrative attitudes years. mention holds, administration. citing appears item shows introduce compulsory uniformity freeing overriding indirection seeking create interpretation non-regulation, introduces laissez faire outside narrow powers. easy exaggerate danger undesirable rejected construction. surely draw idle fears suggesting today's gates escape open, promotes, oversight displaces settled fruitful replace Chicago Board Trade joined defendant issues raised concerning considered companion day, Trade, 247, 1160. arisen '(a) acquired reduce point trade (sic). (b) purchases sales otherwise manipulating private (c) Furnishing tonnage most type, withholding use placing distinct merchandising storage. (d) Providing old wooden carrying premium modern (e) Unduly imprudently delaying return particular warehouseman, tender instructions load delivery.' Accord: 191, recommended reasons: 'The relative aims reads, ullified b y present act. ship terminal outstanding. prime finance, properly, banker safely loan representing when, fact, ot'er distant act, worded, specifically receipts. department emphatically believes sound banking fraternity generally shares feeling. apparent you, course, feature destroyed. reason, then, amending warehousing.' Hearings Senate Forestry H.R. 10. id., 22—26. Independent Gin Dunwoody, arose enacted. warehousemen, Alabama enforcing payment graduated tax, giving bond, obtaining submission suitability adequacy structure, records kept, buildings audit books. Agr. Code Ala.1927, 388—407. exclude definition 'warehouse' building contained C.F.R., Part 102. note promulgated implement provisions. accept grades inspector. grade quantity named receipt. mixed except, inter alia, identity preserved. 'concerning condition, contents, thereof' providing respects thereunder.' 2: 'Bankers repeatedly weakest feature. clarify remove many uncertainties credit man's viewpoint. fear negatived obliged follow thereunder, rulings thereunder. impossible task. enhance purposes.' H.R.Rep.No.4, 1st Sess. 'so exceptions e.g., 20. program described H.R.Rep.No.60, 64th follows: outbreak European war farm marketing country seriously weak, insufficient, inadequate—a recognized students economics. From thorough study appear: lack facilities; exist; methods form issued; multiplicity standards classification, entire classification; graders, classifiers, weighers; country. inauguration bill permissive bonded staple nonperishable issued, weights previously weighers graders standards, direction standardizing conditions, insurance, accounting, financing, products.'

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