Farmers' Livestock Commission Co. v. United States

54 F.2d 375, 1931 U.S. Dist. LEXIS 1876, 1931 WL 67704
CourtDistrict Court, E.D. Illinois
DecidedDecember 14, 1931
Docket4389, 4390
StatusPublished
Cited by20 cases

This text of 54 F.2d 375 (Farmers' Livestock Commission Co. v. United States) is published on Counsel Stack Legal Research, covering District Court, E.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Farmers' Livestock Commission Co. v. United States, 54 F.2d 375, 1931 U.S. Dist. LEXIS 1876, 1931 WL 67704 (illinoised 1931).

Opinion

LIND LEY, District Judge.

Farmers’ Livestock Commission Company, plaintiff in No. 4389, and L. W. Conover, et al. plaintiffs in No. 4390, market agencies, dealers and order buyers, transacting business at the National Stockyards, East St. Louis, Ill., brought these two suits, later consolidated, to enjoin the enforcement of an- order of the acting Secretary of Agriculture, entered after hearing, February 24, 1931.

The controversy had its origin in an investigation instituted October 18, 1930, by the Secretary, in pursuance of section 309 of the Packers and Stockyards Act of 1921 (42 Stat. 159 [title 7, U. S. C., §§ 181-229, 7 USCA §§ 181-229]), wherein it was charged that plaintiffs were participating in unfair and unjustly discriminatory practices in violation of the act, viz., concerted and individual wrongful refusals to do business with the National Order Buying Company and the Producers’ Livestock Commission Company at the stockyards.

The Secretary found that plaintiffs were participating in an illegal boycott as charged; ordered plaintiffs to desist therefrom and suspended their registration as market ageneies for a period of 90 days. A temporary injunction against the suspension was granted by this court.

Section 307 of the act (7 USCA § 208) directs owners and agents at stockyards “to establish, observe, and enforce just, reasonable, and nondiseriminatory regulations and practices in respect to the furnishing of stockyard services,” prohibits regulations or *377 practices to the contrary and declares the same unlawful. Sections 309 and 310 of the act (7 USCA §§ 210, 211) confer upon the Secretary authority to inquire and hear, upon complaint or his own motion, any controversy as to any act of any market' agency or dealers alleged to he in violation of law, and to direct parties to cease and desist from any condemned practice found to exist. Other sections provide for the suspension of offending parties and the recovery of penalties in appropriate actions. Under section 316 of the act (7 USCA § 217) the jurisdiction of this court over the action of the Secretary is the same as that over the action of the Interstate Commerce Commission.

Plaintiffs include, first, commission agents who sell livestock for shippers upon a commission basis to packers, order buyers and dealers; second, order buyers who buy for nonresident packers, sometimes upon commission and sometimes by taking title and reselling to the packer; third, dealers who buy and sell in their own name, usually in comparatively small lots of odds and ends; and fourth, Farmers’ Livestock Commission Company, a co-operative commission agent organized under the CapperVolstead Act (42 Stat. 388 [title 7, U. S. C., §§ 291, 292, 7 USCA §§ 291, 292]), which has not elected to qualify for benefits under the Agricultural Marketing Act (7 USCA § 521 et seq.).

The Producers’ Commission Company, hereinafter referred to as Producers., is of co-operative character, qualified for benefits under the Agricultural Marketing Act. It is one of eight similar companies of the same name operating at eight various livestock markets. The National Order Buying Company, hereinafter referred to as N. O. B., owned by the eight Producers Companies, operates as an order buyer at each of the eight yards where the several eight Producer Companies operate. Its profits at any yard are alloted to the particular producers operating at such yard, and losses are similarly charged to the same party. Order buyers furnish to the commission firms and dealers' their only opportunity to sell livestock to nonresident packers. Consequently, N. O. B. gives to its eight constituent owners, the Producers Companies, an approach of their own to the nonresident market without dependence upon the old line order buyers, and realizes for them and their members profits that would otherwise go to the old line order buyers. Such an agency, owned by co-operative associations in common, is authorized by the Capper-Volstead Act, § 1 (7 USCA § 291). The order buying transactions at East St. Louis constitute nearly three-fourths of the total business there transacted. That yard is the largest order buying point in the United States, and from it the Eastern independent packers largely procúre their stock.

These various market agencies, because of their several closely associated activities, are dependent upon each other for successful results. Selling agencies are dependent upon order buying companies for three-fourths their outlet of stock, while dealers and order buying companies must rely upon and do business with commission houses and other dealers in making purchases. Efficient operation of the yard and the various agencies connected therewith, therefore, necessitate freedom and flexibility of eómmeree among the various agencies.

The Secretary found that such plaintiffs as sell livestock refused to sell to N. O. B. or to permit it to bid for livestock held by them for sale; that such plaintiffs as buy livestock refused to buy from Producers. He found this conduct to he unfair and unjustly discriminatory in that it deprived the N. O. B. and the nonresident packers of an unrestrained competitive buying market and shippers of an unrestrained competitive selling market. A full record of such findings and of the order to cease and desist appears in the findings and conclusions of the court.

Plaintiffs seek to enjoin the order upon the ground that the Packers and Stockyards Act is invalid; that the order is beyond the authority granted the Secretary by the statute and unsupported by the evidence, and that irregularities attending the proceedings work a nullity of the order.

An administrative order, sueh. as that in question, is valid unless the statute fails to authorize jt, or is invalid, provided there is substantial evidence to support it, and there can be no judicial interference with the exercise of administrative judgment or discretion either in the officer’s conclusions or in the conduct of the proceedings. Thus, the Supreme Court said in Virginian Ry. v. U. S., 272 U. S. 658, 47 S. Ct. 222, 224, 71 L. Ed. 463:

“To consider the weight of the evidence before the Commission, the soundness of the reasoning by which its conclusions were reached, or whether the findings are consistent with those made by it in other eases, is beyond our province. Whether a rate *378 is unjustly discriminatory is a question on which the finding of the Commission, supported hy substantial evidence, is conclusive, unless there was some irregularity in the proceeding or some error in the application of rules of law. Western Paper Makers’ Chemical Co. v. United States, 271 U. S. 268, 46 S. Ct. 500, 70 L. Ed. 941. * * *
“The finding of reasonableness, like that of undue prejudice, is a determination of a fact by a tribunal ‘informed by experience.’ Illinois Central R. R. Co. v. Interstate Commerce Commission, 206 U. S. 441, 454, 27 S. Ct. 700, 51 L. Ed. 1128. This court has no concern with the correctness of the Commission’s reasoning, with the soundness of its conclusions, or with the alleged inconsistency with findings made in other proceedings before it. Interstate Commerce Commission v. Union Pacific R. R. Co., 222 U. S. 541, 32 S. Ct. 108, 56 L. Ed.

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Bluebook (online)
54 F.2d 375, 1931 U.S. Dist. LEXIS 1876, 1931 WL 67704, Counsel Stack Legal Research, https://law.counselstack.com/opinion/farmers-livestock-commission-co-v-united-states-illinoised-1931.