Legal Document

356 U.S. 282 78 Supreme Court Reporter 738 2 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 771 The DENVER UNION STOCK YARD COMPANY, Petitioner,v.PRODUCERS LIVESTOCK MARKETING ASSOCIATION. Ezra Taft BENSON, Secretary of Agriculture the States, Petitioner, versus PRODUCERS Nos. 106 and 118. Argued March 10, 1958. Decided April 28, Mr. Ashley Sellers, Washington, D.C., for petitioner Denver Union Stock Yard company Neil Brooks, Benson. Hadlond Pacific KF135 P2 Thomas, Salt Lake City, Utah, respondent. Justice DOUGLAS delivered opinion Court. 1 This litigation started with a complaint filed by respondent, market agency at stockyard, Agriculture, alleging that certain Regulations issued Company are invalid under Packers Stockyards Act, 42 Statutes-at-Large 159, as amended, 7 Code KF62 s 181 et seq., Annotated KF65 U5 § seq. complained provide: 'No or dealer engaging in business this Stockyard shall, upon property, elsewhere, nor shall any other person property— 3 '(1) Solicit markets, sale outside feed yards country points, endeavor to secure customers sell purchase livestock elsewhere; 4 '(2) In manner divert attempt from which would otherwise normally come Yard; 5 '(3) Engage practice device impair interfere normal flow public Stockyard.'1 6 was entertained; admitted it alleged they were necessary enable 'to furnish, reasonable request, without discrimination, stockyard services * patrons secure, *.' prayer answer be granted an oral hearing dismissed. Thereafter motion require respondent produce examination books records. Respondent opposed motion, electing stand illegality matter law. Examiner certified question Judicial Officer decision, recommending proceeding Officer2 dismissed complaint, holding he could not find on their face. 15 Agr.Dec. 638. Appeals reversed,3 unlawful restriction statutory rights duties stockyards agencies Act. 10 Cir., 241 Federal Reporter, 2nd 192. It remanded case directions issue cease desist order against issuance enforcement Regulations. is here certiorari we view importance raised. 353 982, 77 1283, 1285, 1141. Act defines 'market agency' 'any engaged (1) buying selling commerce live stock commission basis (2) furnishing services.' 301(c). also provides 'no carry such unless has registered 303. only but well. One impact therefore clear: having may not, 'normal marketing area' yard (which defined embrace vast area Colorado4), solicit for, to, markets. must, while working the, yard, do exclusively none registered. 8 Yet 304 makes 'the duty' every furnish stockyard.' Section 301(b) mean 'services facilities furnished connection receiving, buying, otherwise, marketing, feeding, watering, holding, delivery, shipment, weighing, handling commerce, livestock.' And 307 prohibits declares 'every unjust, unreasonable, discriminatory regulation practice.' 9 words 'at stockyard' used obviously mean, applied agency,' where From seems plain, therefore, duty producer service Kansas if so desired. made utilities Stafford Wallace, 258 495, 516, 397, 402, 66 L.Ed. 735; Swift & 316 216, 232, 62 948, 956, 86 1391. Their serve all, impartially discrimination. bar both performing duty. A force challenged producers City conflict clear obvious; no evidence make clearer.5 simple us utility refuses power customer buys competitor; carrier rail deny one who ships truck. Cf. Northern R. 1, 514; International 332 392, 68 12, 92 20. When condemns 'unfair' 'unreasonable,' determine whether practice, rule, transcends bounds. See Associated Press National Labor Relations Board, 301 103, 57 650, 81 953; Chicago Board Trade 246 231, 38 242, 683; Sugar Institute 297 553, 56 629, 80 859. But explicit terms, construction often all needed. Securities Exchange Commission Ralston Purina Co., 346 119, 73 981, 97 1494 (public offering); Addison Holly Hill Fruit Products, 322 607, 64 1215, 88 1488 (area production). is, course, true 310 'full hearing' 'regulation' stockyard. That involved Storer Broadcasting 351 192, 76 763, 100 1081. observed never presume Congress intended waste time applications state valid hearing.' Id., page 205, 772. 11 critical present providing, 'It owner Secretary's emphasis argument 'reasonable By analogy antitrust cases, built fact findings essential determination what 'reasonable.' Standard Oil New Jersey 221 31 502, 55 619; supra. Certainly evidentiary if, example, method particular unreasonable. Morgan 298 468, 906, 1288; 58 773, 82 1129; Morgan, 183, 59 795, 83 1211. misapplied here. misconceives thrust Regulations, aimed keeping doing producers, market. These them rendering, some yards, those except Denver. 'No' cannot possibly equated 'reasonable' 12 contra premised theory owners, like feudal barons old, can divide up country, set bounds domain, establish trespassing' signs, registering exclusive agents. institution well known law; legal problem quite different envisaged strictly private enterprise. But, noted, planned differently. Senate Report proclaimed these 'great markets' 'public utilities.' S.Rep. Number 39, 67th Cong., 1st Sess. 7. House Report, same vein, placed par railroads. H.R.Rep. 77, 10. background Chief wrote supra, 514, 401: 13 'The object secured act free unburdened five ranges farms West Southwest through great slaughtering centers borders region, thence form meat products consuming cities Middle East, or, still, stock, feeding places fattening East further preparation market.' 14 He went say treats 'as national utilities,' id., 402. His echoes re-echoes fear monopoly field. We told, however, economics changed, passage most purchases stockyards, now substantial portion about 40 percent, said—takes place markets points. argued Regulation needed keep there competition, out competitive bidding regulation. If does fit business, presented Congress. Though our preference should 'guard danger sliding unconsciously narrow confines law into more spacious domain policy.' Phelps Dodge Corporation 313 177, 194, 61 845, 852, 85 1271. 16 take written. As written, practices, discrimination one. aim terms ends monopoly, faithfully legislative history. 7, stated been demonstrated beyond history development industry effort after another monopoly.' seems, have had long ancestry. 17 Affirmed. 18 CLARK, concurring. 19 N Dec. Immigration Nationality Decisions agree invalidity evident face regulations Company. 164, requires given request customer. Respondent's alleges besides because petitioner's dismiss allegations true. Under 304, several registrations impose part offer Colorado each Since prohibit respondent's fulfillment duty, appear void 307, 165, 208, 208. 20 regulatory scheme devised Congress, possible overcome showing application operation discriminatory. Primary jurisdiction determination. Because that, think course action dismissal found unwarranted remand full hearing. 21 procedure here, purpose effect crystal clear. president before took its posture, affidavit record substance period July 1951, June 30, 1955, 'continually diverted away large volume livestock' consigned sold lambs 'direct many packers including located Atlantic Coast interior Iowa,' 'many transactions conducted (respondent) own name account wholly owned subsidiary, Western Order Buyers, employees said subsidiary.' recites 'As result, early year (1955) item 10(c) rules designed eliminate additional statement '(I)t felt engage inconsistent imposed render best which, when boiled down, means must refrain diverting continue operate (Emphasis added.) With greater than evidence, frank reveals did, monopolize entire State Colorado, save small eastern border. itself sanction violation regulation, namely, cancellation registration, complete offered reasonableness practical operation. regulations, according author, bluntly registrant 'must refrain' livestock, mentioned above, useless formality light irrefutable acknowledgment. 22 worthy note elected defend moved Secretary. Petitioner presently proffered explanations then chose so. While preclude hearing, about-face losing battle lends support cause. 23 For reasons join judgment affirmance. 24 FRANKFURTER, whom HARLAN joins, dissenting. 25 sole this: 26 his powers effectuate 1921, industry, barred determining promulgated preventing diversion go challenge services' yard? 27 To even hear misconceive whole regional geographically licensed, administration conferred him. 28 may, question, abstractly considered—appear unreasonable discriminatory, elucidation concrete, negative appearance. relevant assess it, subject appropriate scope judicial review. action. views elaborated WHITTAKER's opinion, join. 29 WHITTAKER, FRANKFURTER join, 30 respectfully dissent. posted Company, 'stockyard owner'1 facility Denver, constitutes 'stockyard' within meaning 302 Act,2 seq.—hereinafter called 1921 pursuant 302(b) 'posted' thereupon became, since been, provisions became 'duty' stockyard';3 and, 'establish, observe, enforce just, reasonable, non-discriminatory practices respect Pursuant thereto May 11, amendment existing become effective 25, 1955. amended pertinent part, dealer4 32 33 Stockyard.'5 supplied.) 34 Sometime 'posted,' 303, 'registered' agency—not 'dealer'—on thereby acquired status 301(c) term mean: '(A)ny 306(a), stockyard,' print, file Secretary, open inspection (Denver) schedule rates charges stockyard'; stockyard.'6 35 309(a) provides, inter alia, that: 'Any complaining anything done (of Act) apply petition briefly facts, whereupon forwarded defendant, writing, specified Secretary.' following section (§ 310), provides: 'Whenever services, will Secretary— 36 '(a) prescribe thereafter followed; 37 '(b) operator (3) conform observe prescribed.' Invoking 310(a), quoted unauthorized authorized 'regulations (only) services'; (the) purported prescribed established (the regulation) relate invalid'; waiving contention, 'is aside unlawful'; proceeded conclusions respecting ultimately prayed 'be annulled.' Thereupon sent copy petitioner, covering letter, entertained 'disciplinary proceeding' accordance 202.6(b) practice; advised required days receipt 'containing definite facts constitute grounds defense'; concluded burden proof (would) complainant matters of.' answered, admitting 'owner' 'stockyards'; thereon agency'; published questioned specifically denied concerning interpretation generally averments allege prevent unfair unjustly dealers, receiving render, 39 Soon afterward, preparing served latter's records, contain material issues. 'reply' resisted production records ground strike reply responsive produce. After argument, examiner 'interim ruling,' said, 'We hold, asks, violates see taken circumstances'; did sustain Instead January 24, 1956, indicated produced appeared presentation defense motion. On December 23, termed 'Election Rest,' reciting 'that elects law,' 'not cause.' failure making prima facie complaint.' parties Officer7 recommendation Officer, orally briefs, total absence invalid, proceeding. Agr. 41 1034, review decision Officer.8 intervened Appeals, concluding '(t)he compulsion immediate requirement Sec. contemplates imposes business,' held reversed 'with instructions vacate dismissing (to) enter requiring Yards issuing enforcing Regulation.' F.2d, pages 196—197. Upon 106, 118, certiorari. affirms. Its based conclusion majority expressed follows (356 286, 741): clearer.' 43 my view, reasoning misinterpret 44 first, grievous, misinterpretation stems appreciate status, privileges obligations, limited 'such Stockyard'—the earlier shown, 303 plainly states (stating, among things) kinds furnishes equally language 306(a) (to Secretary) schedules less plain stating submit leave room doubt acquires rights, assumes inasmuch Registration give create right obligation services,' Nation, agency.' (Stafford 1391), agency. Doubtless thus utility, registration acquire yet contrary, just several, separate independent though persons. effect, entity another, person. owner' applicable thereon, thereon. Hence might restrict Union) Stockyard.' 45 law, obstruct nondiscriminatory where, apply. analysis shows way (a) stockyard'—the section. Stockyard' six things. first subsection 'solicit markets,' 'for yards,' points,' (4) 'endeavor elsewhere'; second (5) '(i)n *'; third (6) '(e)ngage Surely prohibiting soliciting (livestock) yards' endeavoring induce buy (note 3) 304); moreover, 'country distinguished 'dealer,' account, 'commission basis' others, lawfully 'divert,' position 'attempt divert' market, boycott attempting cause owners ship elsewhere. surely yard. Lastly, believe logically contended 'in device' 46 undisputed not—in here—be circumstances they, them, lawful, 'just, nondiscriminatory.' 307. affirmatively clearly appears contest validity, whatever 310. General American Tank Car El Dorado Terminal 308 422, 60 325, 84 361. 47 entirely case, follow foregoing demonstrates error pivotal 'contemplates (registered stockyard) business.' (241 196.) Appeals.) demonstrates, think, basic 'From discrimination.' 48 indeed obvious contemplated 310, reasonably adduced conduct boycotting 'unfair, deceptive shipment handling, livestock,' 312 6), regulations—or least them—are (means) followed' 310) illegal vacuum—in mind forget gave Secretary—not courts—the followed future, challenging, determining, validity regulations. '(a)ny complaining' 'stat(ing) writing,' 'after *, Secretary—(a) (b) Only perform 'what followed.' left determinations experienced informed him discretion factors subject. 614, 1219, 1488. 'consider peculiar restraint applied; condition imposed; nature actual probable. restraint, evil believed exist, reason adopting remedy, end sought attained, facts.' 238, 244, 683. 'Courts deal cases disclosed, nonexistent assumed circumstances,' 132, 655, 953. 'Because relation remedy policy peculiarly administrative competence, courts allowable (Secretary's) guard find, nondiscriminatory, met test, so; reach facts. 49 face.9 Rather injected collaterally step issues joined proceeding; officer, considering reply, fully Rest' 'this law' refused adduce tendered hence withdrew need of, hold invalid. determined vacuum—without facts—and doing, justified 50 'dealers' dealers questioned. Yet—in assuming facts— affirms striking down conflict, circumstances, them—were nondiscriminatory; court direct himself initiate proceeding, 309(c), determine, goes applicability provisions. Stockyard, subdivision (c) apply, listed follows: lying east line beginning westerly boundary County Sedgwick intersects Nebraska line; south along county Phillips counties; west western Yuma intersection Highway 36; Cope Eads, Colorado; 96 Ordway; 71 Timpas; southwesterly via 350 Trinidad; Mexico line. paragraph solely breeding purposes.' authority delegated (10 Fed.Reg. 13769; 177A—233; 3219, 3648; 11) 4, 1940, 54 81, 516a 1129, 1032, 1032. definition note, Whether reach. 301(a) (42 seq.) conducting operating place, establishment, commonly operated compensation profit consisting pens, inclosures, appurtenances, cattle, sheep, swine, horses, mules, goats received, held, kept commerce.' 301(d) 'dealer' person, agency, either employee agent vendor purchaser.' 'area approximately one-sixth it. similar preceding ones, 1938, things, said: express permission sales elsewhere.' (effective 1938), Page Rules Livestock Division, Agricultural Marketing Service, Department D.C. relevant. owner, use livestock. Whenever whenever believe, violating notice continuing extent finds exist.' Authority proceedings 516a, 516a. shown statement, 'relate invalid,' alternatively, unlawful.'

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