Legal Document

338 U.S. 632 70 Supreme Court Reporter 357 94 L.Ed. 401 UNITED STATESv.MORTON SALT CO. STATES versus INTERNATIONAL Nos. 273 and 274. Argued Dec. 14, 1949. Decided Feb. 6, 1950. [Syllabus from pages 632-634 intentionally omitted] Mr. Philip Elman, Washington, D.C., for petitioner. L. M. McBride, Chicago, Ill., Morton Salt company Frederic R. Sanborn, New York City, International Justice JACKSON delivered the opinion of Court. 1 This is a controversy as to power Federal Trade Commission require corporations file reports showing how they have complied with decree Appeals enforcing Commission's cease desist order, in addition those required by itself. 2 Proceedings under § 5 Act1 culminated order requiring respondents Company Company, together eighteen other salt producers trade association, stated practices connection pricing, producing marketing salt. The Seventh Circuit affirmed modifications commanded compliance. Producers Association Comm., 134 Reporter, 2nd Series 354. directed that manner compliance be filed within ninety days, but it reserved jurisdiction 'to enter such further orders herein time may become necessary effectively enforce every respect this prevent evasion thereof.' expressly was 'without prejudice right United States, provided Section 5(l) Act, prosecute suits recover civil penalties violations said modified hereby affirmed, without initiate contempt proceedings decree.' were subsequently accepted, there matter appears rested little upwards four years. 3 On September 2, 1947, ordered additional highly particularized show continuing decree. done application court, not authorized any provision its decree, statute which original had issued. new recited issued on own motion pursuant published Rule Practice Number XXVI2 authority granted subsections (a) (b) 6 Act. It these parties restrained earlier thirty days 'additional detail form been, are now, complying demanded each producer 'complete statement' 'prices, terms, conditions sale salt, books or compilations freight rates used calculating prices, price lists announcements distributed, employed after January 1, 1944.' From information activities services. some reported satisfactorily. These two did not. Instead, informed general terms previously reported, doubted declined supply particulars demanded. Neither asked hearing made objection scope order. 4 next gave notices asserting their default calling attention 10 respondent notice default. then commenced name States District §§ 9 asking mandatory injunctions commanding report directed, judgment against $100 per day while continued. Respondents answered. Both sides moved summary judgments. court found no dispute material facts dismissed complaints want jurisdiction. 80 F.Supp. 419. Appeals, divided vote, affirmed. 174 703. We certiorari, 857, 100, because case involved issues importance enforcement Act decrees Acts provide similar methods administrative bodies. Government's challenged upon variety grounds, all considered Appeals. They include contentions (1) constitutes an interference invasion powers Appeals; (2) XXVI ultra vires violates Administrative Procedure 60 Statutes-at-Large 237, Code KF62 1001 et seq., Annotated KF65 U5 seq.; (3) procedure unauthorized sections based; (4) novel arbitrary Fourth Fifth Amendments Constitution. For reasons given, we reject contentions. I. Invasion Jurisdiction. 7 respondents' decision below heavily argument invading province judiciary. held represented attempt court's pointed out proceeding 'exclusive' final. 'every vestige jurisdiction' (174 703, 706) over subject 'firmly exclusively lodged (the) Appeals.' noted filing only reports, protected reserving evasion. thought effect assert 'such reside elsewhere.' 8 seems conceded, however, duty, independently must still resided Commission.3 Certainly entry wholly relieve responsibility enforcement. recognized that. left hence violation contemplated could obtain accurate base responsible conclusion cause proceeding. also respondent's filed, Commission. Presumably expected scrutinize and, if insufficient face, move take And duty likewise false report. would appear same temporary truly conduct resumed violate In addition, has unfair competition deceptive acts commerce. That coverage suspended exhausted violator whose guilt once established. If petitioned itself compliance, properly been present evidence probable overcome 'presumption legality,' innocence, obedience law here urge. Courts hesitate alter supplement except need proved well asserted. Evidence have; at most suspicion, let us say curiosity whether reformation business abiding one. Must single rest honor unless fortuitously comes Commission? May Commission, view residual affirmatively satisfy being observed? Whether usurps courts' function is, think, answered consideration fundamental relationship between courts 11 one several Congress, make policy effective, relied initiative officials flexibility process. Its agencies staffs institute follow up police obedience. While process times adversary, inquisitorial. ascertain when whom should set lead following through effective results. combination always will result earnest eager action feared sometimes harsh overzealous action. 12 To protect mistaken orders, judicial review provided. dispassionate disinterested adjudication, unmixed concern success either prosecution defense. start wheels moving neither have, nor need, sleuths dig evidence, analyze personnel prepare prosecutions contempts. Indeed, situations force judge pass he himself raises, regretted whenever sense prosecutor. Those occasions needlessly multiplied denying investigative prosecutive lawful agencies. 13 advisedly receive proceedings. harmony our system. When adjudication complete, judgments handed litigant executive officers, sheriff marshal, execute. Steps department lawfully takes vindication rather than usurpation power. before us, true merged decree; assumed denied agency's inform commerce continued renewed unlawful practice. 14 illustrates difference attempting perform. argue since charge statute, engaged mere 'fishing expedition' see can turn guilt. assume so. often disapproved employment enterprise. extends cases controversies natural jealously confined ends. subpoena specific constitutional limitations, apply self-incrimination, unreasonable search seizure, due law, limitations inherent body them provisions Judiciary Article 15 disguise fact sometimes, especially early history federal tribunal, persuaded engraft go fishing, so followed anyone else. investigations fell colorful nostalgic slogan 'no fishing expeditions.' forgotten relative newcomers field taken continue experience trial error fit into system judicature. More recent views more tolerant underlay many older decisions. Compare Jones Securities & Exchange 298 56 654, 1015; Morgan, 307 183, 191, 59 795, 799, 83 1211. 16 get who best give interested doing Because reluctant unable summon until shown relevant litigation, does agency charged seeing laws enforced exercise inquiry. inquisition, chooses call that, derived function. analogous Grand Jury, depend investigate merely suspicion violated, even just wants assurance accusatory duties delegated body, it, too, steps law. 17 Of course, cannot intrude usurp adjudication. what makes it; remains exclusive, What done, modify reliance powers, law-enforcing powers. 18 Congress regard decrees, least initially, antitrust decrees. 6(c) specifically authorizes leave final prosecuted Attorney General involving party. obviously deemed courts, probe part obtaining them. surely fear involve collision omitted express authorization cases. Express grant seem interest. 19 invaded private respondents, consider later rubrics. Our heading infringes prerogatives court. hold 20 II. Violation 21 framed background rapid expansion check administrators zeal might otherwise carried excesses legislation creating offices. created safeguards narrower ones, official encroachment rights. 22 Thus 3(a) requires applies, includes publish Register certain statements rules, organization procedure, 'including nature requirements formal informal procedures available,' adds 'No person shall resort published.' 6(b) proscribes requirement demand 'in purpose law.' 23 Principally basis contend current Have comply put publication Register? extent defined published, law? 24 pertinent became 11, 1946. December 1946, Rules Practice, Fed.Reg. 14233—14239. XXVI, id., 14237, republished change 5444, 5448, sets limit initial asserts require, sound discretion, thereafter.4 7.12 Statement Organization, Procedures, Functions, 5450, 5452, restated supplemental considers warranted,' contents report.5 25 conclude announced claims party entered 'file thereafter, writing, setting forth * *.' Taken supra, indeed itself, amply met 26 hardly challenge conclusion. Theirs subtle vires, valid Also, direct leads question statutory report, determine apart Accordingly contains sought enforced, issued, was, proclaimed Rule. find authority, objections vain. 27 III. Statutory Authority Require Reports. 28 thought, invoked 5, regarded insulated different situations. held, 'special reports' 'annual special case. 29 At root position lies elaborate plausible self-sufficient, independent exclusive dealing matters therefore section supported aided other. use asserted unprecedented practice introduces method investigating officials, dicta opinions, text writers legislative support theory. But never called deal consciously squarely subject. 30 long unexercised close scrutiny exist; granted, lost allowed lie dormant, nonexistent prescripted unchallenged exercise. know unquestioned lack funds, motives expediency, immediately important concerns. holding ever forfeited nonuser. 31 organic comprehensively provides substantive procedural rules checking competition. complete complaint service review, sued for. entire competition, true, came bill late dealt commercial evil quite target prior laws. noted, although otherwise, confers matter. power, others vain, turned applicable better 9, send investigators examine books, copy documents issue subpoenas, 32 relies, among things exceptions material, organization, business, conduct, practices, management corporation commerce, relation individuals, associations, partnerships.' commission prescribe, annual special, both answers writing questions, furnishing management, corporations, partnerships, individuals respective writing.' 33 text, ample question. class inquiry, about inquire. advance arguments persuade seemingly comprehensive evident text. 34 derive contention separate categories, re-enacting old investigation publicity 'essentially continuance former Bureau Corporations.' unfair-competition self-contained sealed off 5. argued economic surveys aid 5.' 35 good warrant concluding pre-existing mind, expectation procured chiefly useful President, General, nothing deny including A construction allow obtained functions pursue exist unusual, least. think determining proper 36 argued, agreed, report' embrace justify limiting meaning very House Committee Report (H.R.Rep.No.533, 63d Cong., 2d Sess.) sustained contention, read context Speaking section, said, 'The commission, deem advisable. By means, ordinary data furnished adequately disclose financial condition, necessary.' Id., Page 4. An recurrent relatively standardized affair. enable elicit beyond routine hard define 37 Nor applies integrated whole. reporting penalty latter extend implement, contemplates persons partnerships well, reason drastic compel disclosure persons. compelled withhold, reveal exacting immunity prosecution. Corporations disparity artificial significant differing treatment rarely urged particular statute. Moreover, volume proportion unincorporated small size individually owned enterprises, lesser capacity disposition resist possible omit imposed combinations capital. 38 orders. 39 IV. Rights Under Amendments. 40 criticized grounds transgresses Amendment's proscription searches seizures clause. 41 unnecessary entitled protection Amendment. Cf. Oklahoma Press Publishing Walling, 327 186, 66 494, 90 614, 166 American Law Reports 531. Although 'right alone—the rights valued civilized men,' Brandeis, J., dissenting Olmstead 277 438, 471, page 478, 48 564, 570, 572, 72 944, 376, literally such, orderly taking compulsion process, Boyd 116 616, 524, 746; Hale Henkel, 201 43, 70, 370, 377, 50 652, incorporated associations plead unqualified affairs secret. supra; White, 322 694, 64 1248, 88 1542, 152 1202. 42 demands public investigation, cf. Comm. Tobacco Co., 264 298, 44 336, 68 696, 786, claim equality enjoyment privacy. supra. endowed attributes. collective impact society, privilege acting entities. Government allows engaging interstate Favors government carry enhanced measure regulation. Graham Brotherhood Locomotive Firemen, 232, 14; Steele Louisville Nashville 323 192, 65 226, 89 173; Tunstall Firemen Engineers, 210, 235, 187; Wickard Filburn, 317 111, 129, 63 82, 91, 87 122. Even request caused curiosity, nevertheless lawenforcing legitimate themselves corporate behavior consistent 43 course governmental sweeping unrelated inquiry exceed investigatory sufficient agency, too indefinite reasonably relevant. gist requirement. expressed unreasonable.' 208, 505, Nothing face transgressed bounds. do whether, peculiar apparent limits transgressed. Such questions presented respondents. Before seeking arbitrarily excessive, expect supplicant reasonable efforts conditions. raised order's sweep, modification, clarification interpretation it. challenged, instead, Their That, defense below. 45 what, demand. Just abstract. safe stop considerably short extravagant example fears sustain order—that automobile companies automobiles. doubt ask shipment extensive files gifts expensive books. reading certainly, able requirements. 46 objected offered concerning records cost now assertions briefs. opportunity disclaim inadvertent record. necessary, but, not, record convince grievance 47 unconfined control, brings suit, here, penalties. Government, delay ruinous accumulate defendant runs risk his defenses sustained. However, prepared powerless effort clarify pursues accumulating avoiding test refusing bring Since presents question, undertake Declaratory Judgments 2201, 2202, equitable afford remedy wrong, consequences chance given Operating Love, 252 331, 338, 596. enough upholding record, understood exempt examination extending license exact comprehended term accordingly reversed. 49 Reversed. DOUGLAS MINTON took established, 717, amended 52 1028, persons, corporations. 5(b) empowered suitable determination, guilty therefrom; 5(c) 5(d) affirm, enforce, modify, aside placed appropriate insofar here. Civil for, 5(l), recovered actions brought States. 6(a) compile concerning, investigate, jurisdiction, questions,' information. purposes empowered, documentary investigated proceeded against, attendance witnesses production evidence. gives pursuance thereof. And, finally, 10, 'If fail fixed same, failure default, forfeit sum failure, forfeiture recoverable suit money See note 4, infra. example, frankly states: '* attempted immune simply virtue having come assumes can, chooses, procedures. petitioning Appeal permission proceedings, assertion though (c) alleged case, represents moment completely indifferent. *' '§ 2.26. stipulations. where preventing instance approves accepts stipulation agrees methods, involved, named stipulating sixty approval stipulation, stipulation; Provided, (60) period petition circuit appeals, begin run de novo determination *. '(b) Within served entering stipulation. 7.12. Compliance accordance 2.26 warranted. consist full statement with. Mere violating acceptable. factual appraise After act, believe violated certify recovery act. accomplished way With various Clayton

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