Legal Document

331 U.S. 247 67 Supreme Court Reporter 1160 91 L.Ed. 1468 RICE et al.v.BOARD OF TRADE CITY CHICAGO. ILLINOIS COMMERCE COMMISSION al. versus SAME. Nos. 471, 473. Argued Feb. 14, 1947. Decided May 5, Lee Atlantic Freeman, of Chicago, Ill., for petitioner Rice. William C. Wines, Illinois Commerce Com'n. Howard Ellis, respondent. Mr. Justice DOUGLAS delivered the opinion Court. 1 These are companion cases to Rice Santa Fe Elevator Corp., and Commission 218, 1146. Respondent in these cases, Chicago Board Trade, was joined as a defendant proceeding brought by before Commission. As we have noted our complaint charged warehousemen with maintaining excessive, unreasonable discriminatory rates practices, operating inadequate unsafe facilities services, failure comply other requirements law The organized under special Act legislature, Private Laws 1859, Page 13, operates commercial grain exchange has adopted rules regulations governing transactions on exchange. charges (1) that unsatisfactory that, among things, they favor sellers discriminate against buyers; (2) from time regulations, relating warehousing public warehouses custody private without securing prior approval Under law, it is alleged, such may not become operative Commission; turn authority adopt promulgate its own. Ill.Rev.Stat.1945, ch. 114, § 194b.1 Relief asked this phase declaration Board's rules, which did Commission, were void; an order submit fair, equitable, adequate specific. 2 moved dismiss ground Commodity Exchange Act, 49 Statutes-at-Large 1491, amended, 7 United States Code KF62 seq., Annotated KF65 U5 thereunder superseded provisions sought invoke. That motion denied. Thereupon, suits instituted District enjoin proceedings dismissed complaints. Circuit Appeals reversed. Cir., 156 Federal Reporter, 2nd Series 33. here certiorari. 3 Trade 'the greatest market world.' City Olsen, 262 1, 33, 43 470, 476, 839. Its activities been regulated Congress Future Trading 42 187, Grain Futures 998, Act. See H.R.Rep. Number 421, 74th Cong., 1st Sess. claims status which, contended, precludes entertaining complaint. 4 provides comprehensive regulation trading futures commodity exchanges designated 'contract markets' Secretary Agriculture. authorized designate any board trade contract compliance prescribed terms conditions. 5. so designated. contemplates each will contracts. Approval be made only when thereof prevention manipulation prices cornering dealers or operators upon board.' 5(d). contains prohibit certain types practices (see example §§ 4b, 4c, 4h) (as those dealing excessive specultion, see 4a) limit control buying selling markets. But particularly concerned phases federal regulatory scheme. So far problem supersedure concerned, tis unlike one considered shall see. Moreover, subject matter filed relates grain. On two specific provisions. 5 It first place receipts issued Warehoiuse 39 486, 241 accepted discrimination satisfaction contracts market, even though warehouseman also licensed state enjoys different privileges than accorded provided inter alia, warehouse stored meets reasonable imposed location, accessibility, suitability delivery purposes.' 5a(7). some over out deliverable future market. Thus must require 'to make reports, keep records, permit visitation' prescribe. 5a(3). All all changes proposed changes, Secretary. 5a(1). 6 Enough summarized show imposes markets, supervision Secretary, duties preventing controlling supervising contracts, responsibility standardizing assuring their integrity. refusal cause suspension revocation act 5b. And 6a. Criminal penalties violations directors, officers, agents employees. 6b, 9. power 'make investigations he deem necessary ascertain facts regarding operations boards * *.' 8. given broad rule making powers. 8a(5). promulgated numerous covering veriety subjects pertaining markets activities.2 following relevant here, since relate grain: requirement file information concerning commodities 1.43; provision whose (a) specified (b) furnish stocks warehouses, (c) visitation premises inspection books records duly representatives Government. 1.44. 8 In pursuance latter enacted challenged One deliveries declared 'regular' Board. Rule 281. set forth procedure standards 'regular.'3 9 apparent scheme extends whole contract—to satisfaction, well execution. acceptable sales purchases qualifications deliveries. there contained Warehouse supra, system exclusive regulation. Here gone no further write into prohibitions controls give force both them within scope his statutory authority. With exceptions note, conflict would familiar rule. 10 treated differently undertake put behind civil criminal sanctions.4 merely furnished (or do so) conform. while instances disapproval Agriculture 4c), proceeding. Insofar define area provide By 5a(7) fixed 'reasonable' 'location, If transcends bounds, violates 6b. considerable discretion.5 11 Hence seems us action zone where freedom contravene regulation.6 quite if Commision ed Poard either violated collided collision necessary; cannot assume take way impairs 12 There intrinsic evidence preclude supplements bolsters Sections 4b 4c unlawful variety fraudulent deceptive 'nothing section title construed impair State applicable transaction enumerated described sections.' many them, long occasion exercise historic police fields therefore almost certainly laws. serves function preserving areas overlap. Where used care preserve authority, duplicated regulation, fair inference natural course rights saved involved, First Iowa Hydro-Electric Co.-op. Power 328 152, 175, 66 906, 916, but nonconflicting left undisturbed. Moreover Secretarry 'may cooperate department agency Government, political subdivision thereof' supports design excluded requirements. Townsend Yeomans, 301 441, 454, 57 842, 848, 81 1210; Union Brokerage company Jensen, 322 202, 209, 64 967, 972, 88 1227. 13 Respondents' claim is, therefore, premature. Until known what approve adopt, whether law. Any can preserved proceedings. question determined light impact thereunder. Only followed intact domain actuality funtions harmoniously system. For pregnant possibilities may, consummated, wholly barren it. 14 Reversed. provides: 'No warehouse, use negotiation custodian's grain, until approved consistent purpose effective.' found 17 C.F.R., Part I. reglations pr ovide, 'conveniently approachable vessels ordinary draft', 'customary shipping facilities', charge exceeding maximum (Reg. 1620); bond satisfactory 1621); proprietors managers 'unquestioned good financial standing credit' 1624); connected railroad tracks more eastern railway lines' 1625); 'provided modern improvements appliances convenient expeditious receiving, handling, bulk.' 1626). 'irregular' at violation laws 1623), because important change conditions disregard evasion regular 1629). We attempt endow groups functions. Cf. Schechter Poultry Corporation States, 295 495, 55 837, 79 1570, 97 American Law Reports 947; Socony-Vacuum Oil Co., 310 150, 225—227, 60 811, 846, 84 1129; Parker Brown, 317 341, 350 352, 63 307, 313, 314, 87 315. present validity existing issue, intimate suggested impose automatically invalid insofar warehouses. held excludes how complementary, touched situation different. place, measure warehousemen; formulate carry sanctions. second granting regulate narrow field very negatived Government preempted

Classification Label: 9