Legal Document

338 U.S. 604 70 Supreme Court Reporter 403 94 L.Ed. 381 SECRETARY OF AGRICULTUREv.CENTRAL ROIG REFINING CO. et al. PORTO RICAN AMERICAN SUGAR REFINERY, Incorporated versus CENTRAL GOVERNMENT PUERTO RICO AGRICULTURE Nos. 27, 30, 32. Argued Oct. 17, 1949. Decided Feb. 6, 1950. Mr. Orlando Judge Anton Santi, San Juan, P.R., for Porto Rican American Sugar Refinery, Frederic Pacific KF135 P2 Lee, Washington, D.C., Central Roig Refining company and Western Messrs. Jose Treas-Monge, Asst. Atty. Gen., of Puerto Rico, Walton Hamilton, the Government Rico. Neil Brooks, Secretary Agriculture. Donald R. Richberg, respondents Co., Justice FRANKFURTER delivered opinion Court. 1 These three cases bring before us validity an order Agriculture, issued by him on basis Act 1948. It is claimed that disobeyed requirements Act. If it be found brought himself within Act, power Congress to give authority he exercised challenged. By a series enactments addressed itself what serious evils resulting from uncontrolled sugar market. The central aim this legislation was rationalize mischievous fluctuations free market familiar device quota system. Jones-Costigan 1934, 48 Statutes-at-Large 670, 7 United States Code Annotated KF65 U5 §§ 608, 608a, 609—611, 613, 615—617, 620, 1937, 50 903, 1948, 61 922, KF62 (Supp. II, 1949), 1100—1160, 1100—1160. 2 volume moving continental controlled secure harmonious relation between supply demand.1 To adapt means purpose legislation, 1948 defines five domestic sugar-producing areas: two in States, one each Hawaii, Rico Virgin Islands. area allotted annual sugar, specifying maximum number tons which may marketed mainland area. § 202(a). A likewise assigned Philippines. 202(b). balance needs consumers determined year Secretary, 201, met importation foreign countries, predominantly Cuba, requisite amount sugar. 202(c). 3 quotas thus established apply any form, raw or refined. In addition, 207 establishes fixed limits tonnage 'direct-consumption' refined sugar2 annually offshore areas as part their total quotas. But refiners are not subject limitations upon marketing 4 126,033 tons. This figure had its genesis provided largest shipped preceding years. 672—73. case computed at General Quota Regulations, Ser. 2, Rev. 1, Page 4, August 1935. Acts 1937 embedded legislation. All details control commodity like could not, course, legislatively predetermined. Administrative powers essential such regulatory scheme. conferred 205(a) Agriculture raise some issues litigation. section authorized allot well inclusive allowance particular among those area.3 provides 'Allotments shall made manner amounts provide fair, efficient, equitable distribution proration thereof, taking into consideration' factors: (1) 'processings * proportionate shares pertained';4 (2) past marketings; (3) ability allotted. 5 On January 21, Order Number 18, 13 Fed.Reg. 310, allotting various refineries island. Having satisfied need allotment conformity with procedural 205(a), apportioned individual refiners, setting forth appropriate findings applied statutory standards allotment. 6 As 'past marketings' proper measure average highest years marketings during seven-year period 1935—1941. While recognizing ordinarily most recent furnished data, concluded 1942 1947 unrepresentative war abnormal fair purposes economic stabilization Shortages transportation, storage materials, caused war, led special government control. circumstances resulted hardships advantages varying degrees different quite unrelated system post-war period. Likewise 'the market,' recognized best measure. again derangements served make abnormal. He therefore fairer guide his judgment came 1935—1947 period, using, however, present plant capacity corrective. 8 duly considered processings sugar' pertained, but factor fairly applied. so because referred cane, whereas refining concerns restricted themselves after already been processed. felt bound, therefore, no weight sum finally struck, gave equal 9 Availing 205(b), respondents, Company Company, appealed Secretary's Appeals District Columbia. They charged disregard imposed guidance making quotas; they challenged under Due Process Clause Fifth Amendment. Inc., petitioner intervened defend against attack. 32, urge unconstitutionality statute, other meet Being reversed it. 84 U.S.App.D.C. 161, 171 Federal Reporter, 2nd Series 1016. Since failed grounds, majority court did deem decide constitutional question. Because obvious importance decision below administration we granted certiorari. 336 959, 69 889. 10 I. allotments must course keep scrupulously set devising framework flat areas. itself, practical matter, marketers. based too shifting them calls specialized understanding direct congressional determination feasible. Almost inescapably function marketers becomes administrative entrusted member Cabinet oversight agricultural economy nation. left large yet rigidly bounded. Either extreme would defeat avoided only laying down breadth inevitably leeway expert judgment. Its exercise presumes once comprehensive conscientious. Accordingly, instructed 'in distribution' quota. 11 short, discretion commensurate legislative goal. Allocation deemed complexity problems affecting widely separated economically disparate areas, accentuated instability differentiating factors, have persuaded continuous detailed supervision.5 event, plain purport 12 way guiding formulating allotments, directed 'by marketings, market, pertained. Plainly these mechanical self-defining standards. turn imply wide discretion. fact expressed arithmetically gives illusory definiteness process reaching Moreover, duty merely take 'into particularized factors. cannot heedless factors sense, instance, refusing hear relevant evidence bearing them. think feasible bind 'consideration' should play final judgment—what given, whether situation all quantitative share computation. evidently producer permitted retain more less acquired past. were taken consideration allotments. if furnishes representative index relative positions And there calculus available determining base measurement representative. Whether conditions unusual matter counting figures weighing imponderables. limited avid contenders it, escape necessity passing competitive positions. For announced main justifying 'to afford interested persons opportunity sugar.' 205(a). 14 directing effect forecast marketers' perform immediate future. Such doubt draws heavily experience, history never repeats even vicissitudes industry. rationally measured performance, whether, latter, group group—these questions dealt statistical problems. require disinterested, informed difficult prophetic interpretation. 15 mode ascertaining pertained' here controversy. Perhaps implies choice. question common conclude, due consideration, quantitatively reflected formula. Concededly, empowers attribute influences Obviously influential than another sense furnishing better achieving 'fair, officient, distribution.' consonant reason authorize find context criterion has little value entitled nominal weight, unreasonable conclude significance quantitatively. 16 predetermine periods time related respective weights accorded respect sugarquota scheme differs designed tobacco, wheat, cotton rice, respectively. See 313(a), 334(a), 344(a) 353(a) Agricultural Adjustment 1938, 52 47, 53, 57, 61, amended, 1313(a), 1334(a), 1344(a), 1353(a), 1353(a). Nor do bare words confine responsible beyond limitation inherent delegated authority. capricious, act without reason, is, attainment objects declared very conduct, preclude abstract doctrinaire categories. variety plans conform choice permissive necessarily Secretary's; agency 17 considerations dispose phase case. We replace our own hold record acted arbitrarily conviction 1935—1941 1942—1947. can baseless increased mean improved decreased justify opposite conclusion. province exclude reject struck unless say fair-minded tribunal knowledge reached. say. issuing 18 exceed given Congress. II. face challenge constitutionality objection support clearly open 27 30. challenges status litigation raises distinct issue, will postponed moment. 19 problem country old obstinate one. fourteen grappled through mechanism Three enactments, culminating represented effort deal harmful effects interstate commerce progressively depressed prices earlier created world surpluses, or, prefers imbalance production consumption.6 presupposes finding producers adequately respond changes public interest, insofar Commerce drawn needed controls supplement haggling 20 might intervention trusting thereby stability refined-sugar produced. thought otherwise; competition legally overexpanded capacity,7 ought large. right otherwise Mulford Smith, 307 38, 59 648, 83 1092; Rock Royal Co-operative, 533, 993, 1446; Wickard Filburn, 317 111, 63 82, 87 122. 21 commonplace reforms train new difficulties. reform, prevention mitigation concern. ameliorating disorderly competition, generate own, encountered outside conprehensive scope great Clause. does impose geographic uniformity. (Compare Article I, 8, cl. 4.) devise, done national policy regard fluctuating interests regions. e.g., Clark Distilling Cumberland, Md. Maryland 242 311, 37 180, 326, L.R.A.1917B, 1218, Ann.Cas.1917B, 845; Kentucky Whip & Collar Illinois 299 334, 57 277, 81 270; Prudential Insurance Benjamin, 328 408, 66 1142, 90 1342, 164 Law Reports 476. since remotely impinge specific (Art. 9, 6), concerned vexing applicability clauses Compare Downes Bidwell, 182 244, 770, 45 1088; Dooley 183 151, 22 62, 46 128; Territory Alaska Troy, 258 101, 42 241, 487; Hooven Allison Evatt, 324 652, n. 5, 65 870, 879, 89 1252. However, resort defy process. assume extend regulations enmesh Carolene Products 304 144, 148—151, 58 778, 781, 783, 82 1234; Darby, 312 100, 125 126, 451, 462, 463, 85 609, 132 1430; Balzac People 298, 313, 343, 348, 627. offend Amendment alleged discriminatory character oppressive ever claims sort carried plausibility, seem singularly belated view unfolding 23 use administratively allocated beneficiaries, 31, 1281 seq., sanctioned supra. confronted abstractly fix achieve approximate justice recognize acknowledge perplexities. 24 formulation peculiarly swath singular intrusion judiciary extrapolate restrictions deeply rooted notions expresses. strict historical hard latecomers industry who desire expand. hand, extent newcomers allowed enter old-timers expand either increase reduction others. Many plague policy—the projected expansion efficiency depressant wage standards; wise direction capital investments waste incident short long pull overexpansion industrial facilities; availability suitable fixing quotas, etc., etc. apt hodge-podge considerations, including weigh legislators hardly disentangle. 25 Suffice reweigh and, perchance, substitute notion expediency fairness though demonstrably disadvantageous certain persons. relief crudities inequities complicated experimental supra, page 129, 91, 26 Congress, insisted, Whatever inequalities created, forum correction all-sufficient nature controversial matters judicial solution. Thus, while purchase refine quota, apparently operated costs sufficiently low insulate competition. also although contrast unchanging territories vary consumer demand. demand tends stable, refiners' urged, greatly expanded when effect. relatively minor contractions expansions absorbed. business judges sit views. there; incidence hardship shift location intensity. views merits suffices say, cannot, 'discrimination injurious operation clause.' Currin Wallace, 306 14, 379, 386, 441. Expressions dissatisfaction Executive quarters 'arbitrary,' 'discriminatory,' 'unfair' reflect greater wisdom collective put statute books. issue thrashed out Congress; place reconsideration. 28 III. There remains Rico's participate standing fullfledged State. State press claim Commonwealth Massachusetts Mellon, 262 447, 43 597, 67 1078; Florida 273 12, 47 265, 71 511; Jones ex rel. Louisiana Bowles, 322 707, 64 1043, 88 1551, Georgia Tennessee Copper 206 230, 618, 51 1038, Ann.Cas. 488; New York Jersey, 256 296, 41 492, 937; Pennsylvania 439, 716, 1051. rights polity, see Rosaly, 227 270, 33 352, 507; Shell 302 253, 167, 235; Rubert Hermanos, 309 543, 60 699, 916, Island Additional legal raised pressing. conclusion reached apart jurisdictional question, entail empty discussion party advisory delicate subject. real decided unnecessary sue. 114, 3, 83, 30 29 32 dismissed. BLACK affirm Columbia Circuit reasons court's opinion. 31 DOUGLAS took disposition cases. expressions attributed judgments—the Agriculture—and independent judgments pronounce views; confined entertainable judgments. With exceptions here, term refers full text follows: 'Whenever finds pursuant provisions necessary assure orderly adequate flow liquid channels commerce, prevent maintain stable area's hearing notice prescribe, thereof import designate, quantities person consumption therein. Allotments beets sugarcane shares, subsection (b) 302, pertained; importations person; portion him. also, revise amend same initial made.' 926, 1115, 1115. help effectuate 301 payments farmers limit cane grown farms 'proportionate share' quantity fill plus normal carry-over. relevance provision restriction comparable House Committee stated: 'In differences obtaining committee attempted specify exact history. considerable varied changing producing establish areas.' H.R.Rep.No. 796, 80th Cong., 1st Sess. 8. price per pound dutypaid gradually declined 6.98 cents 1923 2.80 early 1932. Tariff Comm'n, Report President Sugar, 73, 2d Ser., 46. Dalton, Case Study Control, chapters IV, V, especially 41; Dept. Bull. 44. estimated alone excess one-third one-half. Series, 91; cf. Institute, 297 553, 574, 56 629, 631, 80 859.

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