Stafford v. Wallace

258 U.S. 495, 42 S. Ct. 397, 66 L. Ed. 735, 1922 U.S. LEXIS 2296, 23 A.L.R. 229
CourtSupreme Court of the United States
DecidedMay 1, 1922
Docket687, 691
StatusPublished
Cited by404 cases

This text of 258 U.S. 495 (Stafford v. Wallace) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stafford v. Wallace, 258 U.S. 495, 42 S. Ct. 397, 66 L. Ed. 735, 1922 U.S. LEXIS 2296, 23 A.L.R. 229 (1922).

Opinion

*512 Mr. Chief. Justice Taft,

after making the foregoing statement of the case, delivered the opinion of the court.

Section 316 of the Packers and Stockyards Act of 1921 makes applicable to suits for injunction against the orders of the Secretary of Agriculture, the same procedure, original and appellate, provided in the Act of October 22, 1913, c. 32, 38 Stat. 208, 219, 220, for suits for injunction against the orders of the Interstate Commerce Commission. The latter act gives a right to a direct appeal to this court from the granting or refusing an interlocutory injunction. Hence the appeals herein are properly prosecuted.

In each bill the averments are sufficient, if. the act be invalid, to show equitable grounds for injunction in the severe penalties incurred for failure to comply with the act before- opportunity can be given to test 'its validity. Ex parte Young, 209 U. S. 123.

We have framed the statement of the case, not for the purpose of deciding the issues of fact mooted Between the packers 'and their accusers before the Federal Trade Commission or the Cotnmittees on Agriculture in Congress, but only, to enable us to consider and discuss the act whose validity is here in question in the light of the environ *513 ment in which Congress passed it. It was for Congress to decide, from its general information and from such special evidence as was brought before it, the nature of the evils actually present or threatening, and to take such stéps by legislation within its power as it deemed proper to remedy them. It is helpful for us in interpreting the effect and scope of the act in order to determine its validity to know the conditions under which Congress acted. Chicago Board of Trade v. United States, 246 U. S. 231, 238; Danciger v. Cooley, 248 U. S. 319, 322.

The Packers and Stockyards Act of 1921 seeks to regulate the business of the packers done in interstate commerce and forbids them to engage in unfair, discriminatory or deceptive practices in such commerce, or to subject any person to unreasonable prejudice therein, or to do any of a number of acts to control prices or establish a monopoly in the business. It cbnstitutes the Secretary of Agriculture a tribunal to hear complaints and make findings thereon, and to order the packers to cease any forbidden practice. An appeal is given to the Circuit "Court of Appeals from these findings and orders. They are to be enforced by the District Court by penalty if not appealed from and if disobeyed. Title III concerns the stockyards and provides for the supervision and control of the facilities furnished therein in connection with the receipt, purchase, sale on commission basis or otherwise, of five, stock and-its care, shipment, weighing or handling in interstate commerce. A stockyards is defined to be a place conducted for profit as a public market, with pens in which live stock are received and kept for sale or shipment in interstate commerce. Yards with a superficial area of less than 20,000 square feet are not within the act. Stockyard owners, commission men and dealers are recognized and defined and the two latter are required to register. The act requires that all rates and charges for services and fácilities in the stockyards and all practices in *514 connection with the live stock passing through the yards shall be just, reasonable, non-discriminatory and non-deceptive, and that a schedule of such charges shall be kept open for public inspection and only be changed after ten days’ notice to the Secretary of Agriculture, who is made a tribunal to inquire as to the justice, reasonableness and noft-discriminatory or non-deceptive character of every charge and practice, and to order that it cease, if found to offend, with the same provisions for appeal and enforcement in court as in the case of offending packers. The Secretary is given power to make rules and. regulations, to carry out the provisions, to fix' rates or a .minimum or maximum thereof and to prescribe how every packer, stockyard owner, commission man and dealer shall keep accounts/

The bills aver that the Secretary has given the notice which requires appellants to register and has announced proposed rules and regulations, prescribing the form of rate schedules, the. required reports, including daily accounts of receipts, sales and shipments, forbidding’ misleading reports to depress or enhance prices, prescribing proper feed and care of live stock, and forbidding a commission man.to sell live stock to another in whose business he is interested, without disclosing such interest to his principal.

The object to. be secured by the act is the free and unburdened flow of live stock from the ranges and farms of the West and the Southwest through the great stockyards and slaughtering' centers on the borders 'of ’that region, and thence in the form of meat products to the consuming cities of the country in the Middle West and East, or, still as live stock, to the feeding places and fattening farms in’ the Middle West or East for further preparation for the market.

. The chief evil, feared is the monopoly of the packers, enabling them unduly and arbitrarily to lower prices to *515 the shipper who sells, and unduly and arbitrarily to increase the price to the consumer who buys. Congress thought that the power to maintain this monopoly was aided by control of the stockyards. Another evil which it sought to provide against by the act, was exorbitant charges, duplication of commissions, deceptive practices in respect of prices, in the passage . of the live stock through the stockyards, all made possible by collusion between the stockyards management and the commission men, on the one hand, and the packers and dealers on the other. Expenses incurred in the passage through the stockyards- necessarily reduce the price received by the shipper, and increase the price to be paid by the consumer. If they be exorbitant or unreasonable, they are an undue burden on the commerce which the stockyards are intended to facilitate. Any unjust or deceptive practice or combination that unduly and directly enhances them is an unjust obstruction to that commerce. The shipper whose live stock are being cared for and sold in the stockyards market is ordinarily not present at the sale, but is far away in the West. He is wholly dependent on the commission men.' The packers and their agents and the dealers who are the buyers, are at-the elbow of the commission men, and their relations are constant and close. The control that the packers have had in the -stockyards by reason of ownership and constant use, the relation of landlord and tenant- between the stockyards owner, on the one hand, and the' commission men and the dealers, on the other, the power of assignment of pens and other facilities by that owner to commission men and dealers, all create a situation full of opportunity and temptation to'the prejudice of the absent shipper and owner in the neglect of the live stock, in the mala fides of the sale, in the exorbitant prices obtained, in the unreasonableness of the charges for services rendered.

The stockyards are not a place of rest or final destination.

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Bluebook (online)
258 U.S. 495, 42 S. Ct. 397, 66 L. Ed. 735, 1922 U.S. LEXIS 2296, 23 A.L.R. 229, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stafford-v-wallace-scotus-1922.