Legal Document

342 U.S. 451 72 Supreme Court Reporter 433 96 L.Ed. 497 BRANNAN, Secretary of Agriculture,v.STARK et al. DAIRYMEN'S LEAGUE CO-OP. ASS'N, Incorporated versus STARK Nos. 6, 7. Argued and Submitted Oct. 9, 1951. Decided March 3, 1952. Mr. Neil Brooks, Washington, D.C., for Brannan. Edward baron Hanify, Boston, Mass., respondents. Messrs. Seward Atlantic Miller, New York City, Frederic Pacific KF135 P2 Lee, Maurice Gellis, Dairymen's League Co-operative Ass'n, Justice CLARK delivered the opinion Court. 1 This action by dairy farmers, nonmembers cooperative associations, concerns 1941 amendments to an order Agriculture dealing with marketing milk in Boston area. It was previously here as Stark Wickard, 1944, 321 288, 64 559, 88 733, where it held that respondents had such interest Order give them legal standing object those its provisions under attack. Upon remand were invalid District Court, 82 F.Supp. 614, decision affirmed Appeals Columbia Circuit. 87 U.S.App. D.C. 388, 185 Federal Reporter, 2nd Series 871. We granted certiorari. 341 908, 71 621, 95 1346. 2 The question now presented is whether which provide certain payments associations are within authority Agricultural Marketing Agreement Act 1937.1 seek enjoin enforcement question. 3 purpose nature Secretary's Number 4 thereunder2 set out some detail supra, at pages 291—302, 561 567. sufficient note following aspects 4, amended: In Order, issued pursuant Act, divided all marketed Greater area into Class I, sold fluid milk, II, used other purposes manufacture butter cheese. provides fixing minimum prices be paid handlers each these classes milk. Each handler pays accordance amount class he has purchased. Producers, however, same price no matter what use made particular handler. Market Administrator computes, on basis handlers, value month. After making adjustments, divides value, adjusted, total quantity during month, determine 'blended price,' actually producer. One adjustment determining price' deduction providing disputed cooperatives.3 thus 'a burden every sale.' page 303, 'Apparently, (it) only unrecoverable charge against producers. items deducted (the Order) a revolving fund or meet differentials because location, seasonal delivery, cetera.' Id., 301, effect correlative cooperatives reduce producers, respondents, who not members would otherwise receive their increase correspondingly receipts cooperatives.4 must authorized statute include requiring this Order. No adequacy evidence support findings Secretary, but rather, power Congress. introduced 1941, after hearings called Secretary. Affidavits, filed representatives his motion summary jdugment show following: A major issue uniform allowance, 26¢ per hundredweight, reflected II milk.5 allowance resulted lower than & N Dec. Immigration Nationality Decisions intended defray cost handling surplus There considerable variance plant costs thought make continuance rate undesirable. Cooperative plants showed higher proprietary handlers. That difference attributable cooperatives' maintenance reserve supply irregular demands also overcapitalization excess capacity existed prior any federal regulation. To proposed coupled payment market services, although they engaged activities claimed constitute services years without payment. resulting from hearings, reduced 21 1/2¢, while time contested, alone, introduced. 5 Section 8c(5) orders relating products shall contain one more enumerated terms conditions, 'and (except provided subsection (7)) others (emphasis added).6 paragraph (D) (7) upon relies. authorizes 'incidental to, inconsistent with, conditions specified subsections (5), (6), necessary effectuate order.'7 specifically part Act. Both courts below neither incidental nor necessary, named subsections.8 6 said justified remuneration performed associations. qualify payments, association eight requirements listed Order.9 But none shows indication activity prescribes will benefit nonmembers, possible exception seventh, requires collaborate 'with similar incident strengthening collective bargaining producers operation plan pricing handlers.'10 Even if requirement comprehends service nonmember substantial enough significant validity mandatory contribution cooperatives, does exaction issue, concededly based mainly primarily members. 7 Indeed, 'services' principally urges justifying do appear among expressed prerequisites payments. Chief tend maintain adequate times dispose supply. principal source problems character production. Herds demand winter months produce much satisfy summer months. contended handle proportionately larger share appears engage means absorbing surplus, aid obviating 'dumping' discouraging reduction herds point season low may conceded indirectly beneficial whole market, even though direct advantage only. However, carry kind, two-thirds cooperatives.11 Prior amendment recognized here. clear way required nonmembers. More significant, there take directed toward solution problem, respect members.12 8 Other are, affect here, relatively insignificant. These like others, designed members, sometimes incidentally market. They generally playing alert, intelligent, organized participant functions employing economists study needs industry, participating involved being attentive changing factors maintaining organizations promotional work farmers benefits cooperation educational observe incongruity pay vigorously prosecuting own interests, especially interests conflict burdened 9 circumstances, we cannot say fall catch-all phrases § 8c(7)(D) outset states specific lengthy included orders. lays down comprehensive directions classification, pricing, equalization pool mechanism, particularly adjustments deductions employed blended price. authorize challenged 8c(7) congeries general orders, including commodities products. claims given last omnibus subsection, authorizing inclusion auxiliary * (7)'.13 Yet contested basic importance crucial success program. think likely Congress, fashioning intricate machinery, hang main gears tail pipe. conclusion 'incidental' further supported presence 8c(5)(E), expressly other, indicating likelihood authorization Congress should made. Finally, since therewith. 10 8c(5)(A), subject concern discriminatory becomes evident when considered context simultaneous establishment system funded result have been substantially permitted remain previous level. Such lack uniformity clearly contravened 8c(5)(A). 11 8(c)(5)(B), delivered, pertinent. represents reimbursement services. argument seems merely constitutes happens perform fact remains delivery smaller true receive, through addition Although collectively, necessarily redound individually. Thus, pro tanto contributions individual need go hold negate inconsistency where, memberships, helpful condition receipt 12 Since (7), former 'necessary provisions'14 third 8c(7)(D). 13 When directly relevant demonstrate require can implied instruction 10(b)(1) directing him accord 'recognition encouragement' associations.15 14 Without words fall, legislative history administrative construction offers cogent reasons contrary result. Available indicia congressional intent enactment lend weight contention provision kind meant made.16 Attempted later accompanying discussion whole, indecisive.17 Approval inferred ratification, passage 1937, Adjustment Act.18 accept proposition confer statutory future then existing order, reach closely analogous present Nor bearing similarity before us so frequently consistent interpretation import construing Act.19 Many appearing statute. first Milk differential between noncooperative upheld Green Valley Creamery United States,20 'market differential' 8c(5)(A)(1). 15 occasion judge equity wisdom case. 16 Affirmed. 17 JACKSON MINTON took consideration 18 BLACK, whom REED DOUGLAS concur, dissenting. 19 dissent sustain Agriculture's majority invalidates. Those reimbursed incur performing found Two three sentences, clauses them, today's avow invalidates solely ground order. remainder Court's limited attempt justify exclusively holding. For despite clause end 'judge payments', nearly devoted studied effort leave impression unfair handouts, gratuities, subsidies inefficiently operated cooperatives. appropriate, therefore, explain very consequences outawing them. 20 fixes regulates distribution Under purchase pool. legally amounts duty Government's administrator distribute contributing far equal quantities quality. difficulty achieving non-cooperative complicated many factors. Non-member fund. highly material funds distributed farm instead deduct expenses distributing balance member farmers. incurred market-wide bring about Fund deductions. farmer get less non-members. See States Rock Royal Co-op., 307 533, 579, 580, 59 993,1015, 1016, 83 1446. non-members free ride cooperating farmers; latter always objected this, regarding dog-in-the-manger attitude practice. Before Government stepped picture, strong coercive measures compel non-cooperatives help fair rendering And beginning government regulation 1930's adopted insure non-member receive. nullified prescribe peaceful method costs, thereby preventing recurrence violent strife country became too familiar national policy adopted. 1941—eleven years. half million dollars cooperatives.1 If illegally received, suppose money held. Whether survive Pandora's box lawsuits case turn loose anybody's guess. Perhaps most England file suits record indicates overwhelming provisions.2 fact, five whose names challengers persons interested sabotaging Expenses litigation, already $25,000 1949, borne financial did suit name. 561, 1007, private proprietors past attacks justifies rather inference continue defendants pushed wellfinanced adversaries. 22 suggested floods saved complete bankruptcy statutes limitations, judicially created defenses, finespun verbal distinctions, emergency legislation. might happen befriend future, blow today inflicted hardly calculated enthusiastic important program wanted to.3 Moreover, ones placed imminent jeopardy As points out, areas receiving millions received little chance escape harassment swarm invites.4 23 been—the backbone dynamo makes function. flop; comparative peace come industry twenties early thirties fighting factions engaging bitter warfare bloodshed nation's highways. Regardless consequences, majority's body command. desire precisely contrary. shown, believe beyond doubt, language, history, background administration laws. 24 feel deeply checkmates will, unjustifiably inflicts grievous wrong plays havoc working peacefully well. judiciary cavalierly throw monkey wrench machinery. 25 History, Background, Administration Act.—An inherent problem cows seasons year others. over disastrous cutting uncontrolled avoid harmful combined agreed find produced. Through channel bargaining, able obtain better wider With surplusage still remained, turned cheese, butter, by-products, manufacturing forced idle surplusage. itself organizations, view helping improve position, passed Capper-Volstead 19225 1929.6 26 Acts treated useful governmental instrumentalities achieve agricultural policies. progress, refused join. paying anything it, nevertheless advantages raising prices, diverting surplusage, improving conditions. produced deep resentment cooperative-producers unrest.7 27 acute long devising whereby producer needed 1933, themselves thier situation. 1929 contract (purchasers producers) Chicago illustrates methods used.8 All agree unless deduction. purchased member-producers. both instances expense procedure insured something 28 1933 empowered regulate licensing agreements. licenses various rendition Some contained 1929.9 Others belong 'service charges' Secretary.10 rendered charged Thus either producer-owned sponsored force part. 29 1935 amended 8(b) amended. hundredweight finding 'the reasonable producers.' States, Cir., 108 342, 345. remained date 1936 until valid First Circuit supra. 562, 565, 993, 1009, From gratuity. 30 summary, exertion strength. up compelled 1935. Committee Reports Amendment 'follow issued' 1935.11 Report explaining why recognize encourage 'to promote efficient distribution' said: 'it experience participation administering' program.12 1937 went 'expressly ratified, legalized, confirmed' 'marketing agreements, licenses, regulations, provisions, acts' 50 Statutes-at-Large 246, 249, Code Annotated KF65 U5 672. ratified legislation referred Act's 'valuable supplements efforts fruits, vegetables, milk.'13 1948 again manifested approval issue.14 31 brushes aside foregoing provisions. Its asserted reason doing lacking. left dark lacks persons, everybody else except leads me real invalidation belief that: 32 (1) mere gratuity, subsidy cooperatives.15 33 (2) properly construed services; therefore nothing, regardless eleven 34 (3) evil illegal group 35 First. gratuities intimated majority, illegal. redetermine facts least exhaustive public hearings16—findings parties. conclusively right well established. hearing concluded Fed.Reg. 3762, CFR, Supp., 904.0. 1943 another unsuccessful eliminate follows: 'The effective August 1, two types producers' desirable: presentation concerning reflect furnish constructive assumption responsibility distributors essential considerations equitably apportion testimony proposal completely feature erroneous.' 3057, 3059. 1947 At reaffirmed rests. 4921, 4928. invalid. 36 abundance equipped constantly stabilize distribution. Evidence maintained expensive equipment care milk; concentrated normally depended short imposed huge burdens bear large chaos fluctuating supply, net reaped harvest sown 37 suggests minor order's smoothly functioning 392, 399, 871, 875, 882. 'there rendered' emphatically declared 'There doubt pronounced aids participants area—producers, consumers.' impatiently rejected 'gratuity' theory declaring 'so serves describe effects detail.' resurrects implying gifts, upsetting asserting indulging pure construction.17 This, course, safest upset evidence. 38 Second. imply render valuable ought paid. reading punctilious nicety, finds compelling precise fail see do, event read performed. 39 connection broad Most importantly, 'assumption distributors.' 904.10(b)(2) specifies meeting responsibility. section running sell process language: 'Each qualified entitled cents hundred-weight association.' Neither could possibly order—namely, work, pay.18 40 904.10(b)(1) bringing second type for. whatsoever service, comply 'collaborate(s) handlers.'19 things last-mentioned bound 41 hearing, separate occasions expended am sure forbids hope supposed linguistic skill deprive theory, sure. 42 Third. somewhat 'incongruity' allowing 'vigorously interests,' leaving inherently why. incongruous let nothing sole certainly obtaining all. end. Furthermore, want barred taking fullest regulated. impossible hire regular, all-time employees perform, duplicate, best perhaps irritatingly farmer-owned farmercontrolled associations.20 contrary, controlling law directs can.21 unduly fastidious concept.22 43 actions well-functioning Government-controlled milk-market system. inevitable rigidity defined authorizations additional mechanisms 'Incidental order.' 49 750, 757, KF62 608c(7)(D), 608c(7)(D). key section, measuring standard' 'incidental,' 'not inconsistent,' 'necessary.' Largely relying selections abstract word definitions, forbidden words. agrees 'inconsistent' terms. meticulously avoids reliance 44 Necessary.—The 'necessary' An affected voted favor smooth government's issue. me; meaning 45 Incidental.—The holds holding idea 'incidental.'23 marked contrast statement constituted fraction percent area.' carrying control deny independent ends serve. Clearly Consequently, refuses 'considerable flexibility' definitely specified.' 575, 576, 1014. 46 C. Inconsistent.—The notion destroys detriment regard rests unsupported unsupportable 'receipts price.' error assumptions whichever assertion 'redound individually.' absence assertion, known work. extraordinary renewed adoption rejected. do. today, prevents 47 striking departed principles announced supervision agents. principles, refrain setting evidence;24 administrators;25 administrators interpreted terms, involved, our one' 'we reached arisen instance judicial proceedings.' Unemployment Compensation Comm. Territory Alaska Aragan, 329 143, 153, 67 245, 250, 91 136. Only ago Labor Board 'Not conclusive questions field Board's application doubtful situations weight.' National Relations Denver Bldg. Construction Trades Council, 675, 691, 692, 943, 952, 953, 1284. True, reference Taft-Hartley 141 seq., interpretations stand 48 dissent. amended, 601 seq. reenacted 31, Regulations §§ 904.1—904.110. 904.8(b) Administrator, computing price, deduct, items, 904.10(b), provides: '(b) On 25th day handlers' 904.9. rates paragraph, verification based. '(1) cent deliver association; association, fails applicable 904.9(b)(2) 904.11 days month so. (e) subparagraph rate. '(2) 904.10(b). $1,521,028; addition, $400,000 deposited special account await final litigation. e.g., R. 60, 70—75. 8c(5), supra: '(5) products, others: '(A) Classifying form used, fixing, classification pay, made, volume, production customarily applied grade quality purchased, locations thereof, '(B) Providing: '(i) delivering them: Peovided, That, covering only, approved favored three-fourths who, representative period determined Agriculture, covered period, volume period; hereunder apart disapproval section; '(ii) irrespective uses delivered; subject, case, (a) (b) (c) (d) adjustment, handler, marketings time. '(C) accomplish forth paragraphs (A) (B) (including handlers), sums fixed hereof. '(D) Providing that, regularly next preceding consumption thereby, producer, regular continuing full calendar succeeding lowest (5). '(E) (i) (F) information weights, sampling, testing appropriate therefor (ii) assurance of, security for, '(F) Nothing (5) prevent February 18, 1922, 'Capper-Volstead Act', sales blending proceeds markets classifications, thereof producers: Provided, '(G) agreement prohibit manner limit, product States.' 8c(7)(D), Subsection commodities. authorized, (D), competition, filing selection agency implement S.Supp. 618; U.S.App.D.C. 397—399, 880—882. 904.10(a): '(a) Application qualification Any duly laws state apply determination section. notice application, 904.9, estimates ample applicant, ruled application. applicant determines meets requirements. conforms organization, voting, dividend 291, 292, organized. operates responsible producer-controlled exercising sale '(3) systematically checks weights tests association. '(4) guarantees maintains, individually together competent staff '(6) maintains close relationships '(7) collaborates '(8) compliance subpart.' Ibid. 1939 (no statistics available record), powder, condensed proprietary. co-operative handled 60.2 year. 66 68. Contrast comparable rates, arrange 'in area,' secure 'utilization assure greatest return C.F.R., 1950 Cum.Supp., 927.9(f). highest circumstances qualifications (be) willing members.' 927.9(f)(3). 233. Their omission finally issued, presumably deliberate. admits unwilling unable 24—25 70. (6) 10(b)(1), enacted 753. occurred shortly decisions Panama Refining company Ryan, 1935, 293 55 241, 79 446, Schechter Poultry Corporation 295 495, 837, 1570, placing limitations delegation rule-making agencies. cases mind, deliberate particularity completeness H.R.Rep.No.1241, 74th Cong., 1st Sess. 8; S.Rep.No.1011, 8. S. 3426, 76th 3d Sess.; S.Rep.No.1719, 3426 Senate, further. inconclusive Bill Appeals, 400, 883. 'Nothing invalidating agreement, license, act executed, approved, done acts hereby confirmed.' Of thirty-nine currently outstanding four here; 12, 1939, court impounding entered 1949. opportunity express title, recognition encouragement owned harmony distribution.' 767, 610(b)(1). apparently desires challenges. sustaining grounds yet argued. nature. language formulating significance, distinctions drawn arbitrary fiat. 291. gave exemptions 11, 1141, 1141. organization loans crops, assist educating marketing. Nebbia People State York, 291 502, 54 505, 78 940. H.R.Doc.No.451, 2d 47—48. See, Twin City (St. Paul Minneapolis) Area License 5, Ex. A, Arts. III, 29, terminated 16, 1934; 32, 1934 April 1944. Baltimore Production Article September 25, 1933. Detroit Shed 23, Evansville, Indiana, October 19, Philadelphia App. 21, 9. Supra, Page 13. H.R.Rep.No.468, 75th 2. 'Any 302 necessity amendatory relative program, continued establish orderly 8c(18) Act.' July 1948, 62 1247, 1258, (Supp. IV) 672(b), 672(b). 614. Public 1940, 1942, 1947. 1940 records exhibit. available; published Register requires. available, presumption action. 567—568, 1010, disclaims challenge findings. resorts affidavits trial subsidize inefficient overcapitalized plants. bona fide compensation fact; relies affidavit fact. finding. tested heard, de novo proceedings reviewing court. n. 904.10(a)(1)(7). 'It argued decided expensive. answer. this. He duties class, violate 608c(5)(B)(i) therewith.' 881. discussed above fourth rely flavor reserves corresponding coloration, shows, themselves, high brings deal competitors. decide cooperate competitors glad rate, proceeding wronged, groups similarly wronged. Maybe synonyms, wholly it. Universal Camera Board, 340 474, 456, 456. Gray Powell, 314 402, 326, 86 301.

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