Queensboro Farms Products v. Wickard

137 F.2d 969
CourtCourt of Appeals for the Second Circuit
DecidedAugust 13, 1943
Docket319
StatusPublished
Cited by18 cases

This text of 137 F.2d 969 (Queensboro Farms Products v. Wickard) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Queensboro Farms Products v. Wickard, 137 F.2d 969 (2d Cir. 1943).

Opinion

137 F.2d 969 (1943)

QUEENSBORO FARMS PRODUCTS, Inc.,
v.
WICKARD.

No. 319.

Circuit Court of Appeals, Second Circuit.

July 19, 1943.
As Revised August 13, 1943.

*970 *971 *972 *973 *974 Harry Polikoff, of New York City, for appellant.

John S. L. Yost and W. Carroll Hunter, Sp. Assts. to Atty. Gen., Margaret H. Brass, Sp. Atty., Department of Justice, David P. Gordon and Rufe Edwards, Attys., Department of Agriculture, all of Washington, D. C., Tom C. Clark, Asst. Atty. Gen., and Harold M. Kennedy, U. S. Atty., of Brooklyn, N. Y., for appellee.

Before L. HAND, CLARK, and FRANK, Circuit Judges.

FRANK, Circuit Judge.

We approach this case having in mind the following important background facts:

The Act was originally enacted in 1933 and was amended in 1935 and again in 1937, 7 U.S.C.A. § 601 et seq. Its original provisions relating to milk were the result of nation-wide distress of milk farmers, a distress which had culminated in a milk farmers' "strike" — accompanied by violence and constituting an incipient agrarian revolution — that threatened to cut off a vital part of the nation's food supply. Experience before and since the passage of that legislation has disclosed that the "milk problem" is exquisitely complicated. The city-dweller or poet who regards the cow as a symbol of bucolic serenity is indeed naive. From the udders of that placid animal flows a bland liquid indispensable to human health but often provoking as much human strife and nastiness as strong alcoholic beverages. The milking of animals in order to make use of their lactic secretions for human food was one of the greatest human inventions,[3] but the domestication of milk has not been accompanied by a successful domestication of some of the meaner human impulses in all those engaged in the milk industry. The difficulties described as "the milk problem" revolve in some considerable measure about the complex relations between the farmers and the "handlers" who buy the milk from the farmers and sell it, in fluid or altered form, directly or indirectly through others, to the ultimate consumers. The resultant intricacies of milk-marketing have frequently led farmers and consumers — sometimes justifiably and sometimes not — to believe that they have been dealt with unfairly.[4] The difficulties have given rise to much legislation and are reflected in many judicial decisions.[5] The pressure of milk *975 is indeed powerful. A milk flood washed away the foundations of what seemed the firmly entrenched constitutional doctrine that the legislature could regulate only business "affected with a public interest"[6]; and the lactic tides have eroded another constitutional doctrine which more recently appeared to have been strongly established (i. e., that only within very narrow limits can Congress delegate "legislative" powers), showing that what oil and chickens could not do milk could.[7] The milk problem is so vast that fully to comprehend it would require an almost universal knowledge ranging from geology, biology, chemistry and medicine to the niceties of the legislative, judicial and administrative processes of government. It affects an industry immense in scope, for dairying is said to be the largest single branch of agriculture in this country with the exception of that of raising livestock for slaughter, the annual money value of dairy products running to billions of dollars.

Appellant makes two principal contentions: first, that the orders, if properly construed, do not justify the Secretary's decision as to appellant; second, that, if construed so as to justify the decision, the orders themselves are invalid because not authorized by the Act. We shall, for convenience, consider those questions in inverse order.

1. In passing on the issue of the invalidity of the orders, we shall assume, for the time being, that the Secretary's interpretation of them, as applied to appellant, is correct. Briefly stated, that interpretation is as follows: A handler, receiving milk from producers at his receiving plant, processes the milk into cream and then ships that cream to a second plant, owned by the same handler, whence it is reshipped, unchanged in form, to buyers at whose plants the cream is processed into ice-cream which is then shipped to their customers; in each such case the milk is, under the orders, classified as cream in determining the price to be paid by the handler who received it from the producers.

Appellant contends that, thus interpreted, the orders are invalid because they employ a classification which is based on "movement" and not on "use" as required by § 8c(5) (A) of the Act. Appellant insists that that section requires a classification under which milk leaving any plant of a handler is classified according to its form when marketed for ultimate consumption.

The legislative history demonstrates that Congress, in employing the words "use" and "use classification" in that section, did not mean "ultimate use." That section and related sections were added to the Agricultural Adjustment Act of 1933 by amendments enacted in 1935. As the bill which eventuated in the amendatory Act of 1935 passed the House, it provided for the classification of milk in accordance with its ultimate utilization. As it passed the Senate, it provided for classification "in accordance with the form in which or the purpose for which it is used * * *" A conference resulted. The conferees on behalf of the House said in their report to the House: "Under the House bill orders relating to milk and its products were to include, among other provisions, provisions for classifying milk in accordance with the form in which it is ultimately used or consumed. The comparable provision in the Senate amendment provides for classification in accordance with the form in which, or the purpose for which, the milk is used. The House recedes."[8]

Whose use, then, did Congress have in mind in providing for "use classification"? Section 8c(1) makes it clear that Congress meant primarily the "handler's use," for that section provides that the Secretary's orders are "applicable to handlers" and to no one else; and they alone are to be regulated under the Act. Certainly nothing is expressly said in the Act as to *976 "the use made by buyers from the handlers." It is noteworthy that the last sentence of § 8c(5) (A) speaks of "the locations at which delivery of such milk, or any use classification thereof, is made to such handlers."[8a]

That same section, however, provides for two alternative kinds of "use classification": milk may lawfully be classified by the Secretary "in accordance with" either (1) "the form in which" the milk is used or (2) "the purpose for which" it is used. The provision is disjunctive. It follows that there may be a valid classification solely in accordance with the "form in which" the milk is used and without regard to "the purpose" of the use. And since it is clear that the use is primarily that of the handlers, it also follows that the Secretary may, in his discretion, classify solely according to "the form in which" the milk is used by a handler without regard to the intended use by (i. e., the purpose of) a purchaser from that handler or by any subsequent purchaser.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

White Eagle Cooperative Assoc. v. Johanns
508 F. Supp. 2d 664 (N.D. Indiana, 2007)
National Farmers' Organization, Inc. v. Yeutter
925 F.2d 1464 (Sixth Circuit, 1991)
Smyser v. Block
760 F.2d 514 (Third Circuit, 1985)
Dairylea Cooperative, Inc. v. Butz
504 F.2d 80 (Second Circuit, 1974)
Inter-State Milk Producers' Cooperative v. Butz
372 F. Supp. 1010 (E.D. Pennsylvania, 1974)
Cranston v. Freeman
290 F. Supp. 785 (N.D. New York, 1968)
Foster v. Freeman
271 F. Supp. 33 (S.D. New York, 1967)
Duba v. Schuetzle
303 F.2d 570 (Eighth Circuit, 1962)
General Ice Cream Corp. v. Benson
113 F. Supp. 107 (N.D. New York, 1953)
Midwest Farmers, Inc. v. United States
64 F. Supp. 91 (D. Minnesota, 1945)
People v. Walton
161 P.2d 498 (California Court of Appeal, 1945)
People v. Walton
70 Cal. App. 2d 864 (Appellate Division of the Superior Court of California, 1945)

Cite This Page — Counsel Stack

Bluebook (online)
137 F.2d 969, Counsel Stack Legal Research, https://law.counselstack.com/opinion/queensboro-farms-products-v-wickard-ca2-1943.