reeves stake argued april decided june years south dakota operated cement plant produced cement state residents buyers cement shortage state cement commission announced policy confine sale cement state plant residents state policy forced petitioner concrete distributor one buyers cut production severely petitioner brought suit federal district challenging policy granted injunctive relief ground policy violated commerce clause appeals reversed ground state simply acted proprietary capacity held south dakota program sale cement violate commerce clause pp nothing purposes animating commerce clause prohibits state absence congressional action participating market exercising right favor citizens others hughes alexandria scrap pp commerce clause responds principally state taxes regulatory measures impeding free private trade national indication constitutional plan limit ability operate freely free market restraint area also counseled considerations state sovereignty state role guardian trustee people recognized right trader exercise discretion parties deal moreover state proprietary activities often burdened restrictions private market participants case illustrates competing considerations cases involving state proprietary action often subtle complex politically charged difficult assess traditional commerce clause analysis given factors adjustment interests context rule better suited congress pp arguments invalidating south dakota program state long exploited interstate market cement permitted withdraw shortage arises program responds solely nongovernmental objective protectionism hoarding may undesirable consequences program places south dakota suppliers concrete competitive advantage market south dakota acted free market forces generated appropriate level supply free market prices buyers region weak best whatever residual force inheres offset countervailing considerations policy fairness invalidate program discourage similar state projects rob south dakota intended benefit foresight risk industry pp blackmun delivered opinion burger stewart marshall rehnquist joined powell filed dissenting opinion brennan white stevens joined post dennis kirven argued cause filed brief petitioner william janklow argued cause respondents brief michael demersseman curtis jensen justice blackmun delivered opinion issue case whether consistent commerce clause art cl state south dakota time shortage may confine sale cement produces solely residents south dakota undertook plans build cement plant project product state prevailing progressive political movement initiated response recent regional cement shortages interfered delayed public private enterprises threatening people state eakin south dakota state cement south dakota cement commission anticipated hat ready market entire output plant within state report state cement commission plant however located rapid city soon produced cement south dakotans use years buyers less nine nearby purchased cement state plant app plant output went outside state plant list cement buyers included petitioner reeves reeves concrete distributor organized wyoming law facilities buffalo gillette sheridan wyo beginning operations reeves purchased cement south dakota plant purchases turn reeves supplied three northwestern wyoming counties half concrete needs years relationship reeves south dakota cement plant amicable uninterrupted mutually profitable construction season approached difficulties plant slowed production meanwhile booming construction industry spurred demand cement regionally nationally plant found unable meet orders faced type serious cement shortage inspired plant construction commission reaffirmed policy supplying south dakota customers first honor contract commitments remaining volume allocated first come first served basis ibid reeves supply contract hit hard quickly development june plant informed reeves continue fill reeves orders july turned away reeves truck unable find another supplier reeves forced cut production july reeves brought suit commission challenging plant policy preferring south dakota buyers seeking injunctive relief conducting hearing receiving briefs affidavits district found substantial issue material fact permanently enjoined commission practice reasoned south dakota hoarding inimical national free market envisioned commerce clause appeals eighth circuit reversed reeves kelley concluded state simply acted proprietary capacity permitted hughes alexandria scrap petitioner sought certiorari granted petition vacated judgment remanded case consideration hughes oklahoma reeves kelley remand appeals distinguished case relying alexandria scrap abided previous holding reeves kelley granted reeves petition certiorari consider impact commerce clause state proprietary activity ii alexandria scrap concerned maryland program designed remove abandoned automobiles state roadways junkyards encourage recycling bounty offered every junk car converted scrap processors located outside maryland eligible collect subsidies legislation initially enacted required processor seeking bounty present documentation evidencing ownership wrecked car requirement however apply hulks inoperable automobiles eight years old statute amended extend documentation requirements hulks comprised large majority junk cars processed departing prior practice new law imposed exacting documentation requirements processors making less remunerative suppliers transfer vehicles outside maryland reform triggered precipitate decline number hulks supplied appellee virginia plant maryland sources indeed practical effect substantially maryland withdrawn altogether availability bounties hulks delivered unlicensed suppliers licensed processors see dissenting opinion invoking commerce clause district struck legislation supp md observed amendment imposed substantial burdens upon free flow interstate commerce reasoned discriminatory program least disruptive means achieving state articulated objective see generally pike bruce church reversed recognized persuasiveness lower analysis inherent restrictions commerce clause deemed applicable view however alexandria scrap involve kind action commerce clause concerned unlike prior cases voiding state laws inhibiting interstate trade maryland sought prohibit flow hulks regulate conditions may occur instead entered market bid price purchaser effect potential article interstate commerce restricted trade citizens businesses within state characterized maryland market participant rather market regulator found reason believe commerce clause intended require independent justification state action couched holding unmistakably broad terms nothing purposes animating commerce clause prohibits state absence congressional action participating market exercising right favor citizens others omitted basic distinction drawn alexandria scrap market participants market regulators makes good sense sound law case explains commerce clause responds principally state taxes regulatory measures impeding free private trade national marketplace citing hood sons du mond referring home embargoes customs duties regulations excluding imports indication constitutional plan limit ability operate freely free market see tribe american constitutional law commerce clause directed historical matter regulatory taxing actions taken sovereign capacity precedents comport distinction restraint area also counseled considerations state sovereignty role state guardian trustee people heim mccall quoting atkin kansas long recognized right trader manufacturer engaged entirely private business freely exercise independent discretion parties deal colgate moreover state proprietary activities may often burdened restrictions imposed private market participants evenhandedness suggests acting proprietors similarly share existing freedoms federal constraints including inherent limits commerce clause see state ex rel collins senatobia blank book stationery miss tribune printing binding barnes finally case illustrates competing considerations cases involving state proprietary action often subtle complex politically charged difficult assess traditional commerce clause analysis given factors alexandria scrap wisely recognizes rule adjustment interests context task better suited congress iii south dakota seller cement unquestionably fits market participant label comfortably state acting subsidize local scrap processors thus general rule alexandria scrap plainly applies petitioner argues however exemption marketplace participation necessarily admits exceptions conceding possibility perceive case sufficient reason depart general rule finding commerce clause violation district emphasized commission made election become part interstate commerce system app gist reasoning repeated petitioner one good turn deserves another long exploited interstate market south dakota permitted withdraw shortage arises argument persuasive somewhat say south dakota exploited interstate market equally fair characterization neighboring long benefited south dakota foresight industry viewed light surprising alexandria scrap rejected argument maryland legislation challenged invalid cars abandoned maryland processed neighboring five years alexandria scrap must conclude chronology distinguish case commerce clause purposes one state offered cement domestic buyers start rejection petitioner theory fundamentally refocuses analysis means reverse void south dakota residents policy even enforced plant first days holding however interfere significantly state ability structure relations exclusively citizens also threaten future fashioning effective creative programs solving local problems distributing government largesse see supra healthy regard federalism good government renders us reluctant risk results stay experimentation things social economic grave responsibility denial right experiment may fraught serious consequences nation one happy incidents federal system single courageous state may citizens choose serve laboratory try novel social economic experiments without risk rest country new state ice liebmann brandeis dissenting undaunted considerations petitioner advances four arguments reversal first petitioner protests south dakota preference residents responds solely objectiv protectionism brief petitioner therefore petitioner argues policy per se invalid see philadelphia new jersey find label protectionism little help context state refusal sell buyers south dakotans protectionist sense limits benefits generated state program fund state treasury state created serve petitioner argument apparently also characterize protectionist rules restricting state residents enjoyment state educational institutions energy generated plant police fire protection agricultural improvement business development programs policies perhaps protectionist loose sense reflect essential patently unobjectionable purpose state government serve citizens state second petitioner echoes district warning state union allowed hoard commodities resources use residents drastic situation might evolve example pennsylvania wyoming might keep coal northwest timber mining minerals result embargo may retaliated embargo commerce halted state lines app third suggested south dakota program infirm places south dakota suppliers concrete competitive advantage market wyoming suppliers petitioner little chance south dakota suppliers purchase cement state plant freely sell beyond south dakota borders force argument seriously diminished eliminated several considerations argument necessarily implies south dakota scheme unobjectionable sales totally barred therefore proves much tolerate even greater measure protectionism stifling interstate commerce challenged system allows see technical sales north jersey dist water supply odd indeed find state becomes less parochial purpose becomes suspect commerce clause cf pike bruce church extent burden tolerated course depend whether state interest promoted well lesser impact interstate activities forgotten alexandria scrap approved state program effectively protect ed scrap processors existing plants maryland pressures competitors nearby plants implicitly offer ed extend similar protection competitor willing erect scrap processing facility within maryland boundaries finally competitive plight suppliers laid solely feet south dakota attributable well providing attracting alternative sources supply suppliers failure guard shortages executing supply contracts south dakota plant last argument petitioner urges south dakota acted free market forces generated appropriate level supply free market prices buyers region replaced free market forces south dakota forced replicate free market operated prevailing conditions argument appears us simplistic speculative reason south dakota built plant free market failed adequately supply region cement see supra indication way know private industry moved petitioner market area ensured supply cement petitioner either prior construction season indeed quite possible petitioner never existed far less operated successfully years south dakota cement conclude arguments invalidating south dakota program weak best whatever residual force inheres offset countervailing considerations policy fairness reversal discourage similar state projects even though project demonstrably served needs state residents helped entire region half century reversal also rob south dakota intended benefit foresight risk industry circumstances reason depart general rule alexandria scrap judgment appeals affirmed ordered footnotes backdrop south dakota cement project initiated described schell history south dakota ed although majority voters seemingly subscribed philosophy question far republican administration pierre go fulfilling campaign promises governor norbeck entered upon second term urged state hail insurance law advocated steps toward coal mine cement plant stockyards also recommended appropriation surveying dam sites hydroelectric development lawmakers readily enacted recommendations law except stockyards proposal retrospect norbeck program must viewed part progressives campaign monopolistic prices moreover fervent desire make services state government available agriculture basic tenets progressive philosophy government ement finely ground manufactured mineral product usually gray color mixed water sand gravel crushed stone aggregates form concrete substance widely used construction material world portland cement association cement industry economic report ed concrete term applied ordinary concrete mixed central depot instead construction site distributed special trucks encyclopedia britannica clear state initiated policy preferring south dakota customers record however shows policy place least app agree appeals hughes oklahoma bear analysis case involved state attempt prevent privately owned articles trade shipped sold interstate commerce philadelphia new jersey quoting packing haydel thus involved precisely type activity distinguished alexandria scrap see pendency litigation economic conditions permitted south dakota discontinue enforcement policy agree parties however case become moot least three construction seasons within many decades cement plant unable nearly unable satisfy demand see twelfth biennial report south dakota state cement commission app affidavit reeves circumstances challenged action duration short fully litigated prior cessation expiration reasonable expectation complaining party subjected action weinstein bradford maryland sought justify reform effort reduce bounties paid processors cars abandoned outside maryland district concluded maryland achieve goal satisfactorily simply restricting payment bounties cars abandoned maryland invoked rationale explicitly reiterating district finding maryland program imposed burdens upon free flow interstate commerce moreover willing accept virginia processor characterization maryland program reducing manner flow goods interstate commerce given concession unable accept dissent description alexandria scrap case found burden commerce post concluded subsidies erected barriers trade post determined maryland program cut impede flow interstate commerce post indeed even dissent present case recognizes maryland subsidy program divert ed maryland processors post sure alexandria scrap rejected argument bounty program constituted impermissible burden interstate commerce ibid emphasis added however solely maryland entered market thus analysis distilled dissent alexandria scrap see post collapses single inquiry whether challenged program constituted direct state participation market post dissent agrees question answered affirmative ibid dissent central criticisms result reached seem south dakota policy emanate power governments supply needs threatens natural functioning interstate market post observations however apply equal force subsidy program challenged alexandria scrap alexandria scrap stand alone american yearbook askew supp md district upheld florida statute requiring state obtain needed printing services shops reasoned state proprietary functions exempt commerce clause scrutiny affirmed summarily numerous courts rebuffed commerce clause challenges directed similar preferences exist substantial majority note iowa rev city phoenix superior citing american yearbook reaffirm schrey allison steel mfg denver bossie gemmill idaho people ex rel holland bleigh constr citing american yearbook state ex rel collins senatobia blank book stationery miss allen labsap mo hersey neilson mont tribune printing binding barnes see also printing board public contracts miss luboil heat power pleydell misc sup clear departure pattern people ex rel treat coler drew strong dissent uniformly criticized later decisions see state ex rel collins senatobia blank book stationery supra allen labsap supra one case merits comment bethlehem steel board commissioners cal app cal rptr struck california statute requiring state contract persons promised use supply materials produced opinion op cal atty state attorney general reasoned bethlehem steel similarly prohibited foreign commerce clause statutes giving preference goods occasion explore limits imposed state proprietary actions foreign commerce clause constitutionality buy american legislation compare bethlehem steel supra technical sales north jersey dist water supply note however commerce clause scrutiny may well rigorous restraint foreign commerce alleged see japan line county los angeles see american yearbook askew ad hoc inquiry burdening interstate commerce unduly interfere state proprietary functions bring standstill considerations sovereignty independently dictate marketplace actions involving integral operations areas traditional governmental functions employment certain state workers may subject even congressional regulation pursuant commerce power national league cities usery follows easily intrinsic limits commerce clause prohibit state marketplace conduct falls within sphere even integral operations implicated may fairly claim measure sovereign interest retaining freedom decide whose benefit deal term harv rev see packing haydel representative people state might retained shrimp consumption use therein toomer witsell concurring opinion state power provide citizens developing food supply distinguished interference private transactions food products helvering gerhardt concurring opinion genius government provides within sphere constitutional action people power determine conditions demand services functions public welfare requires state buys sells attributes political entity private business nonetheless dissent dismiss altogether private business element activity focus solely state political character post however heretofore recognized ike private individuals businesses government enjoys unrestricted power produce supplies determine deal fix terms conditions upon make needed purchases perkins lukens steel emphasis added acknowledging may limits sweepingly phrased principle ignore similarities private business public entities function marketplace see national league cities usery new york california see also lafayette louisiana power light criticism received alexandria scrap part directed application proprietary immunity state subsidy programs see note ind com rev see term harv occasion inquire whether subsidy programs unlike involved alexandria scrap warrant characterization proprietary rather regulatory activity cf ind com alexandria scrap explained true state money initially made available licensed processors well located within maryland amendment financial benefit channeled practical effect domestic processors chronology distinguish case commerce clause purposes one state offered bounties domestic processors start regardless state largesse first confined domestic processors effect upon flow hulks resting within state tend processed inside state rather flowing foreign processors trade barrier type forbidden commerce clause involved previous cases impedes movement state remain within maryland response market forces including exerted money state omitted petitioner distinguish alexandria scrap involving state legislation designed advance nonprotectionist goal environmentalism characterization oversimplification challenged feature maryland program discriminatory documentation requirement aimed improving environment indeed decreasing profit margin hulk supplier expect receive delivered accessible recycling plant likely amendment somewhat set back goal encouraging hulk processing stated justification discriminatory regulation reducing payments processors recycling hulks abandoned outside maryland even mentioned rebuffing virginia processor commerce clause challenge indeed central point analysis demonstration independent justification unnecessary sustain state program see note ind com bottom discrimination challenged alexandria scrap motivated concern underlying south dakota policy desire channel state benefits residents state supplying underlying commendable well legitimate purpose also required certainly present establishing plant south dakota sought unstartling governmental goal improvement quality life state generating supply previously scarce product needed local construction governmental improvements cement program sure may somewhat unusual unorthodox way utilize state funds improve quality residents lives state project much legitimate governmental activity whether traditional akin private enterprise conducted profit state may deem essential economy operate railroad mill irrigation system operate bridges street lights sewage disposal plant might viewed earlier day improvident even dangerous extension state activities may today deemed indispensable new york dissenting opinion south dakota cut access cement altogether policy bar resale south dakota cement purchasers although buyer secondary market undoubtedly pay markup borne south dakota competitors result wholly unjust little question south dakota least exact premium purchases compensate state investment risk plan one views added markup paid buyers south dakota middlemen rough equivalent premium challenged program equates permissible result bottom line scheme closely parallels result alexandria scrap concrete suppliers removed market altogether compete successfully competitors however must achieve additional efficiencies exploit natural advantages location offset incremental advantage channeled state market behavior concrete suppliers petitioner also seeks distinguish alexandria scrap ground unlike state created relevant market see concurring opinion clear however alexandria scrap rest notion maryland created interstate market hulks see dissenting opinion note ind com term harv note lee rev risk borne south dakota establishing cement plant underestimated explained supra cement plant one several projects progressive state government sought deal local problems fate similar projects illustrates risk borne south dakota taxpayers setting cement plant cost million thus coal mine sold early estimated loss nearly fourteen years operation legislature also liquidated state bonding department state hail insurance project total loss taxpayers latter venture approximately schell history south dakota ed justice powell justice brennan justice white justice stevens join dissenting south dakota cement commission ordered times shortage state cement plant must turn away customers orders south dakotans filled policy represents precisely kind economic protectionism commerce clause intended prevent however finds violation commerce clause solely state produces cement agree state south dakota may provide cement public needs without violating commerce clause agree south dakota may withhold cement interstate commerce order benefit private citizens business within state need ensure unrestricted trade among created major impetus drafting constitution power commerce one primary objects people america adopted government gibbons ogden wheat indeed constitutional convention called earlier convention trade commercial problems proved inconclusive beard economic interpretation constitution bloom history formation union constitution subsequent debate ratification alexander hamilton emphasized importance unrestricted interstate commerce unrestrained intercourse advance trade interchange respective productions commercial enterprise much greater scope diversity productions different staple one fails call aid staple another federalist cooke hamilton see madison case presents novel constitutional question commerce clause bar legislation imposing private parties type restraint commerce adopted south dakota see pennsylvania west virginia supra cf great tea cottrell packing haydel conversely private business constitutionally adopt marketing policy excluded customers come another state case falls polar situations state commission engages commercial enterprise restricts interstate distribution question whether commission policy treated like state regulation private parties like marketing policy private business application commerce clause case turn nature governmental activity involved public enterprise undertakes integral operatio areas traditional governmental functions national league cities usery commerce clause directly relevant however state enters private market operates commercial enterprise advantage private citizens may evade constitutional policy economic balkanization distinction derives power governments supply needs see perkins lukens steel atkin kansas purpose commerce clause designed protect natural functioning interstate market hughes alexandria scrap supra procuring goods services operation government state may act without regard private marketplace remove reach commerce clause see american yearbook askew supp md summarily aff state becomes participant private market purposes constitution forbids actions impede flow interstate commerce categories recognize constitutional line state government state trader new york see california ohio helvering south carolina holds south dakota like private business governed commerce clause enters private market precisely south dakota state presumed behave like enterprise engaged entirely private business see ante quoting colgate state frequently respond market conditions basis political rather economic concerns use terms state may attempt act market regulator rather market participant see ante situation pretense equate state private economic actor state action burdening interstate trade less state action accomplished public agency authorized participate private market ii threshold issue whether south dakota undertaken integral government operations area traditional governmental functions whether participated marketplace private firm latter characterization applies also must determine whether state commission marketing policy burdens flow interstate trade analysis highlights differences state action hughes alexandria scrap alexandria scrap virginia scrap processor challenged maryland program pay bounties every junk car registered maryland converted scrap program imposed onerous documentation standards processors thereby diverting maryland hulks processors virginia plaintiff argued diversion burdened interstate commerce today notes alexandria scrap determined maryland bounty program constituted direct state participation market automobile hulks ante critical question second step opinion analysis whether bounty program constituted impermissible burden interstate commerce recognizing case fit neatly conventional commerce clause theory found burden commerce first observed maryland sought prohibit flow hulks regulate conditions may occur instead entered market bid price impact upon interstate flow hulks maryland effectively made lucrative unlicensed suppliers dispose hulks maryland unlike market subsidies issue alexandria scrap marketing policy south dakota cement commission cut interstate trade state raise bar enters market supply needs order ensure adequate supply cement public uses state withhold interstate commerce cement needed public projects cf national league cities usery supra state however parallel justification favoring private customers customers response political concerns likely inconsequential private cement producer south dakota shut cement sales customers beyond borders discrimination constitutes direct barrier trade type forbidden commerce clause involved previous cases alexandria scrap effect interstate trade state legislature imposed policy private cement producers commerce clause prohibits severe restraint commerce iii share desire preserve state sovereignty commerce clause long recognized limitation sovereignty consciously designed maintain national market defeat economic provincialism today approves protectionist state policies absence contrary congressional action policies implemented long state directly participates market enforcing commerce clause case work unfairness people south dakota still reserve cement public projects share whatever return plant generated however use power state furnish cement forbidden people neighboring creation free national economy major goal resolved unite federal constitution decision today reconciled purpose protectionism refer state policies designed protect private economic interests within state forces interstate market exclude term policies relating traditional governmental functions education subsidy programs like one issue hughes alexandria scrap see infra attempts distinguish prior decisions address commerce clause limitations state regulation natural resource exploitation hughes oklahoma pennsylvania west virginia contends cement production unlike activities involved cases end product complex process whereby costly physical plant human labor act raw materials ante distinction fails two respects first principles articulated natural resources cases also applied decisions involving agricultural production notably milk processing hood sons du mond pike bruce church fundamentally definition cement production describes sophisticated economic activity including exploitation natural resources extraction natural gas example hardly occur except complex process whereby costly physical plant human labor act raw materials also suggests commerce clause application case south dakota posses unique access materials needed produce cement ante regional market south dakota unique access cement cutoff cement sales economic impact refusal sell resources like natural gas customers seek sources supply find substitute product without regardless nature product state hoards consumer denied guarantee commerce clause may look free competition every producing area nation protect exploitation hood sons du mond supra one distinction private governmental function whether activity supported general tax funds case reprocessing program alexandria scrap whether financed revenues generates case south dakota cement plant supported many years see tr oral arg thus need consider question whether business confine sales local residents consequences south dakota policy devastating petitioner reeves wyoming firm years reeves purchased cement south dakota plant state imposed preference south dakota residents reeves reduce production ante result south dakota competitors vastly superior position compete work region explicitly exclude possibility commerce clause congress might legislate protectionist state policies see ante since decision contains limiting principles state able manufacture commercial product withhold citizens prerogative extend example pharmaceutical goods food products even synthetic processed energy sources