New York State Guernsey Breeders' Co-operative, Inc. v. Noyes

260 A.D. 139, 21 N.Y.S.2d 347, 1940 N.Y. App. Div. LEXIS 4549
Appellate Division of the Supreme Court of the State of New York·Decided June 28, 1940·Published·Cited by 7 cases

Opinion

McCurn, J.

This is a proceeding under article 78 of the Civil Practice Act to review the promulgation by the Commissioner of Agriculture and Markets of the State of New York of a milk marketing order for the so-called Rochester area. The principal features of the order complained of are that it fixes a minimum price and provides for equalization in the Rochester area.

The statutory authority for the marketing order is provided in sections 258-k to 258-m, inclusive, of the Agriculture and Markets Law. The statute with which we are concerned was passed by the 1937 Legislature and became effective May 19, 1937. It is known as the Rogers-Allen Act and was amended in 1939 by the so-called Nunan Act. This legislation followed a period of serious difficulty in the milk industry. It was designed to eliminate destructive competition on the part of producers and to prevent unsavory practices on the part of some dealers, to the end that the needs of the consuming public for this essential food be safeguarded, and that the dairy farmer might have a secure market for his milk and receive an equitable share of the price which the consumer ultimately pays.

Those in the milk industry speak of milk as belonging to classes I, II, III, IV, etc. These classifications are not made as to the kind or quality of milk, but as to its uses. Class I, or fluid milk, is milk used on the table. Classes II, III and IV include milk used for ice cream, butter, cheese, etc. Obviously, class I milk, used for food in its original form, commands a greater proportionate retail price and, consequently, a better price for the producers. As a consequence each producer hopes to get his milk into the class I market, even during the flush periods of the year when he has a surplus over and above what he can ordinarily put into the class I market. In order to do so, he cuts the price and crowds out some one else who, in turn, cuts his price, this process being repeated throughout the industry until the whole market is demoralized.

By a declaration of policy, the statutes providing for minimum prices and equalization were designed to end such unhealthy competition and to stabilize prices. (See § 258-k.)

[142]*142The fault which the petitioner, New York State Guernsey Breeders’ Co-operative, Inc., finds with the present order is directed principally at the provisions for equalization. It attacks also, step by step, the procedure followed by the Commissioner and asserts that it is not in accord with the statute. The grounds of criticism will be considered one by one as set forth in petitioner’s brief.

First, it is claimed that “ The petition does not justify equalization.” It is argued by petitioner in this proceeding that the petition which initiated the proceedings to promulgate the order complained of does not conform to the statute. A public hearing was had and evidence was offered to prove the conditions referred to in the petition. An officer of the New York State Guernsey Breeders’ Co-operative, Inc., was present and gave his testimony. He raised the objection there that the conditions giving rise to the proposed order were not properly pleaded in the petition. He stated that he would not oppose the order if it were merely an order to compel dealers to pay producers the established price without equalization. He objected to the equalization provision of the order. He testified to the conditions upon which he based his objections and presented his arguments therefor.

Thus it can be seen that there was a complete hearing upon all the matters essentially involved in the Commissioner’s order. The petitioner here was in no way surprised or misled by the failure to make the original petition more specific as to facts. The petition was a substantial compliance with the statute and at least was not so faulty as to invalidate the order subsequently made.

Second, it is claimed that No testimony given at the public hearing showed that 75 per cent of the producers favored equalization, and the Commissioner did not make his finding upon such testimony.”

It is clear from the wording of the statute that the Commissioner must find from the testimony given at the hearing that the conditions, upon which the order is to be based, exist. It would be straining the language used to hold that approval of the proposed order must be obtained from such testimony. It cannot be that the Legislature meant that a producer in order to make his approval or disapproval known to the Commissioner would have to present himself personally as a witness. Such a procedure would be impractical in an area of some 1,900 producers. A properly conducted referendum is more practical and in accord with known methods of ascertaining the will of those concerned.

Third, it is claimed that “ No separate vote upon equalization was permitted.”

[143]*143We find no provision of the statute for the right to a separate vote on price fixing and equalization. The Commissioner committed no error in submitting the propositions together. The statute indicates that price fixing and equalization are intended to be parts of the same order.

Fourth, it is claimed that “ The provisions of the order failed to obtain in the referendum the seventy-five per centum favor and approval required by the statute.”

It was stipulated that there were about 1,900 producers in the area. A total of 1,463 votes were cast, 1,219 in favor of the order and 244 against. Thus, eighty-three per centum of the votes cast were in favor of the order, equaling sixty-four per centum of the 1,900 producers in the area. The petitioner claims that to authorize the order it was necessary to have the vote of seventy-five per centum of the total 1,900 producers in favor of the order. Many cases are cited in both briefs to support the respective contentions.

People ex rel. Hetfield v. Trustees (70 N. Y. 28) was a case in which the village of Fort Edward attempted to issue bonds in aid of a railroad. The statute provided “ the taxable inhabitants of said village may at such meeting by a majority vote, decide to raise a sum not exceeding twenty thousand dollars for the purpose provided in this act.” It also contained the words: “ in case a majority of said taxable inhabitants shall vote to raise such sum for said purpose.” In that case the voters who voted in favor of the proposal did not constitute a majority of all the taxable inhabitants. The court held (at p. 33): “ The statute did not authorize a minority of the taxpayers to determine the question whether a debt should be created under the act. Before this could be done there must have been an affirmative vote of a majority of the taxable inhabitants.”

The case of Smith v. Proctor (130 N. Y. 319) involved authority for raising money to build a school house. The statute read: “ whenever a majority of all the inhabitants of any school district entitled to vote, to be ascertained by taking and recording the ayes and noes of such inhabitants attending,” etc. It was held that the statute simply required a majority of the qualified voters in attendance. In Matter of Talbot v. Board of Education of City of N. Y. (171 Misc. 974) it was held that the board could adopt an amended budget only by a majority vote of its seven members and not by a majority of a quorum.

In Morris v. Cashmore (253 App. Div. 657; affd., 278 N. Y. 730) it was held that a majority of a quorum of the common council could legally act for that body.

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New York State Guernsey Breeders' Co-operative, Inc. v. Noyes, 260 A.D. 139, 21 N.Y.S.2d 347, 1940 N.Y. App. Div. LEXIS 4549 (N.Y. Ct. App. 1940).

260 A.D. 139 (New York State Guernsey Breeders' Co-operative, Inc. v. Noyes) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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