parker brown argued decided january walter bowers los angeles strother walton fresno appellants levin aynesworth fresno appellees robert stern washington amicus curiae special leave chief justice stone delivered opinion questions consideration whether marketing program adopted raisin crop california agricultural prorate rendered invalid sherman act note agricultural marketing agreement act amended et et commerce clause constitution art cl appellee producer packer raisins california brought suit district enjoin state director agriculture raisin proration zone members state agricultural prorate advisory commission program committee zone others charged statute administration prorate enforcing appellee program marketing crop raisins produced proration zone trial upon oral testimony stipulation facts certain exhibits district held raisin marketing program illegal interference undue burden upon interstate commerce gave judgment appellee granting injunction prayed supp case tried district three judges comes appeal judicial code amended appears evidence findings district almost raisins consumed nearly world crop produced raisin proration zone per cent raisins grown california ultimately shipped interstate foreign commerce harvesting marketing crop california follows uniform procedure grower raisins picks bunches grapes places drying trays laid rows vines grapes sufficiently dried places boxes moisture content equalized point curing process complete growers sell raisins deliver boxes handlers packers whose plants located within zone packers process plants ship interstate commerce raisins marketed clusters sometimes merely packed unstemmed suitable containers often cleaned fumigated necessary steamed make stems pliable raisins sold clusters raisins stemmed packing packers also clean grade sort one variety also seeded packing packers sell raisins agents brokers jobbers middlemen principally located foreign countries ready ship raisins packer stores form received producers length time raisins remain packing plants processing shipping varies days two years depending upon packer current supply raisins market demand packers frequently place orders producers fall delivery crop harvested time enter contracts sale raisins customers recent years packers substantial stored raisins end crop season usually marketed raisins next year crop marketed california agricultural prorate act authorizes establishment action state officials programs marketing agricultural commodities produced state restrict competition among growers maintain prices distribution commodities packers declared purpose act agricultural wealth state economic waste marketing agricultural crops state authorizes creation agricultural prorate advisory commission nine members state official director agriculture officio member eight members appointed terms four years governor confirmed senate required take oath office upon petition ten producers establishment prorate marketing plan commodity within defined production zone public hearing making prescribed economic findings showing institution program proposed zone prevent agricultural waste conserve agricultural wealth state without permitting unreasonable profits producers commission authorized grant petition director approval commission required select program committee among nominees chosen qualified producers within zone may add two handlers packers receive regulated commodity producers marketing program committee required formulate proration marketing program commodity produced zone commission authorized approve public hearing finding program reasonably calculated carry objectives act commission may advised modify program approve modified proposed program approved commission consented per cent number producers zone owning per cent acreage devoted production regulated crop director required declare program instituted authority administer program subject approval director agriculture conferred program committee section declares shall misdemeanor punishable fine imprisonment penal code producer sell handler receive possess without proper authority commodity proration program instituted like penalty imposed upon person aids abets commission acts specified section declared shall constitute separate distinct offense section imposes civil liability every violation provision proration program seasonal proration marketing program raisins concerned became effective september provided program committee classify raisins raisins unfit human consumption defined federal food drug cosmetic act et et seq committee required establish receiving stations within zone every producer must deliver raisins desires market raisins graded stations inferior raisins placed raisin pool disposed committee assured diversion purposes substandard raisins least per cent total standard substandard raisins produced must placed pool raisins pool may also disposed diversion purposes except certain circumstances program committee may transfer standard raisins surplus pool stabilization pool fifty per cent crop must placed pool program producer permitted sell remaining per cent standard raisins denominated tonnage ordinary commercial channels subject requirement obtain certificate authorizing marketing pay certificate fee ton covered certificate certification stated device controlling time volume movement free tonnage ordinary commercial channels raisins stabilization pool disposed committee manner obtain stability market dispose raisins raisins subject special lending pooling arrangements federal government sold committee less prevailing market price raisins variety grade date sale program committee make advances producers ton depending upon variety raisins deliveries surplus pool ton deliveries stabilization pool committee authorized pledge raisins held pools order secure funds finance pool operations make advances growers appellee bill complaint challenges validity proration program violation commerce clause sherman act support decree district also urges conflicts superseded federal agricultural marketing agreement act complaint alleges engaged within marketing zone producing purchasing packing raisins sale shipment interstate adoption program entered contracts sale crop raisins unless enjoined appellants enforce program respondent criminal prosecutions prevent marketing crop fulfilling sales contracts purchasing sale selling interstate commerce raisins crop appellee allegations irreparable injury general terms appears evidence produced tons crop raisins contracted sell tons crop dealt tons raisins crop expected sell challenged program force tons crop ton price growers raisins crop program became effective per ton immediately afterward rose per ton higher also appears district awarded final injunction prayed appellee proceeded marketing crop disposed except twelve tons remain hand although district found amount controversy exceeds opinion complaint assails validity program laws suit one regulating commerce allegation proof jurisdictional amount required peyton railway express agency majority also opinion suit within equity jurisdiction since plaint alleges evidence shows threatened irreparable injury respondent business threatened prosecutions reason marketed crop protection district decree validity prorate program sherman act section sherman act makes unlawful contract combination conspiracy restraint trade commerce among several makes unlawful attempt monopolize combine conspire person persons monopolize part trade commerce among several may assume present purposes california prorate program violate sherman act organized made effective solely virtue contract combination conspiracy private persons individual corporate may assume also without deciding congress exercise commerce power prohibit state maintaining stabilization program like present effect interstate commerce occupation legislative congress exercise granted power familiar example constitutional power suspend state laws see adams express croninger napier atlantic coast line missouri pacific porter illinois natural gas central illinois public service plain prorate program never intended operate force individual agreement combination derived authority efficacy legislative command state intended operate become effective without command find nothing language sherman act history suggests purpose restrain state officers agents activities directed legislature dual system government constitution sovereign save congress may constitutionally subtract authority unexpressed purpose nullify state control officers agents lightly attributed congress sherman act makes mention state gives hint intended restrain state action official action directed state act applicable including corporations authorizes suits persons corporations state may maintain suit damages state georgia evans may cooper derived literal meaning words purpose subject matter context legislative history statute suggestion purpose restrain state action act legislative history sponsor bill ultimately enacted sherman act declared prevented combinations see also purpose suppress combinations restrain competition attempts monopolize individuals corporations abundantly appears legislative history see apex hosiery leader note addyston pipe steel affirmed standard oil true state give immunity violate sherman act authorizing violate declaring action lawful northern securities question state municipality becoming participant private agreement tion others restraint trade cf union pacific state command commission program committee california prorate act rendered unlawful sherman act since view latter words history must taken prohibition individual state action state created machinery establishing prorate program although organization prorate zone proposed producers prorate program approved commission must also approved referendum producers state acting commission adopts program enforces penal sanctions execution governmental policy prerequisite approval program upon referendum prescribed number producers imposition upon minority force agreement combination sherman act prohibits state exercises legislative authority making regulation prescribing conditions application required vote referendum one conditions compare currin wallace hampton wickard filburn state adopting enforcing prorate program made contract agreement entered conspiracy restraint trade establish monopoly sovereign imposed restraint act government sherman act undertake prohibit olsen smith cf lowenstein evans validity program agricultural marketing agreement act agricultural marketing agreement act stat et et authorizes tary agriculture issue orders limiting quantity specified agricultural products including fruits may marketed current directly burden obstruct affect interstate foreign commerce orders may allot amounts handlers may purchase producer means equalize amount marketed among producers may provide control elimination surpluses establishment reserve pools regulated produce federal statute differs california prorate act sanction falls upon handlers alone state act applies growers extends also handlers far may unlawfully receive possession within state commodity subject prorate program may assume powers conferred upon secretary extend control surpluses raisin industry pooling arrangement promulgated california prorate act present case see rock royal currin wallace supra may assume also stabilization program adopted agricultural marketing agreement act supersede state act federal act becomes effective program ordered secretary section provides whenever secretary agriculture reason believe issuance order tend effectuate declared policy act respect commodity shall give due notice opportunity hearing upon proposed order provides hearing shall issue order finds sets forth order issuance tend effectuate declared policy act respect commodity question since secretary given notice hearing proposed promulgated order regulating raisins must taken reason believe issuance order tend effectuate policy act secretary authorized order effectuate declared policy act order obtain uniformity formulation administration enforcement federal state programs relating regulation handling agricultural commodities confer cooperate duly constituted authorities state whole structure act seem contemplates policy may effectuated state program either without promulgation federal program order secretary cf rock royal supra follows adoption adequate program state may deemed secretary sufficient ground believing policies federal act effectuated without promulgation order evident therefore marketing act contemplates existence state programs least time secretary shall establish federal marketing program unless state program way conflicts policy federal act act contemplates sovereign shall operate sphere exert authority conformity rather conflict sess pp sess suggested possibility conflict declared purposes two acts object federal statutes stated establishment exercise power conferred secretary marketing conditions agricultural commodities interstate commerce tend establish prices farm purpose interest consumers current consumptive demand considered action shall taken purpose maintaining prices parity level declared objective california act prevent excessive supplies agricultural commodities affecting market although statute speaks terms stability waste rather price evident purpose effect regulation agricultural wealth state raising maintaining prices permitting unreasonable profits producers possibility conflict seem state program raise prices beyond parity price prescribed federal act condition occurred secretary reason believe state act tend effectuate policies federal act require issuance order latter evidenced approval given department agriculture state program loan agreement state commodity credit corporation agricultural adjustment act stat commodity credit corporation authorized recommendation secretary approval president make available loans agricultural commodities terms conditions loans secretary subject approval corporation president authority commodity credit corporation made loans zone secured pledge tons crop raisins surplus stabilization pools loans ultimately liquidated sales tons packers tons federal surplus marketing administration agency department relief distribution export program loans conditional upon adoption state present seasonal marketing program informed government request filed brief amicus curiae loan agreement prices sales policies pledged raisins controlled committee appointed secretary officials department agriculture collaborated drafting state raisin program section agricultural adjustment act requires commodity credit corporation make loans producers certain agricultural products specified percentages parity price authorizes loans agricultural commodity government informs us making loans latter authority construed department agriculture requiring loans made order effectuate policy federal agricultural legislation section agricultural adjustment act declares policy congress achieve statutory objective loans agricultural adjustment act agricultural marketing agreement act derived agricultural adjustment act stat et coordinate parts single plan raising farm prices parity levels conditions imposed secretary agriculture loan agreement state california collaboration federal officials drafting program must taken expression opinion department agriculture state program thus aided loan consistent policies agricultural adjustment agricultural marketing agreement acts find conflict two acts occupation legislative field mere adoption agricultural marketing agreement act without issuance order secretary putting effect preclude effective operation state act occasion decide whether conclusion follow state program adopted collaboration officials department agriculture aided loans modity credit corporation recommended secretary agriculture validity program commerce clause found approximately per cent california raisin crop finds way interstate foreign commerce denied proration program devised compel delivery producer including appellee raisin crop program committee subject marketing control committee program adopted exercise legislative power delegated state officials force law clothes committee power imposes duty control marketing crop enhance price least maintain prices restraints competition producers sale crop program operates eliminate competition producers terms sale crop including price since per cent crop marketed interstate commerce program may taken substantial effect commerce placing restrictions sale marketing product buyers eventually sell ship interstate commerce question thus presented whether absence congressional legislation prohibiting regulating transactions affected state program restrictions imposes upon sale within state commodity producer processor contemplates fact work upon commodity packing shipping interstate commerce violate commerce clause governments sovereign within territory save subject prohibitions constitution action measure conflicts powers delegated national ment congressional legislation enacted exercise powers repeatedly held grant power congress commerce clause wholly withdraw authority regulate commerce respect matters local concern congress spoken minnesota rate cases simpson shepard south carolina state highway dept barnwell et et seq people state california thompson cases cited duckworth arkansas fortiori many subjects transactions local concern interstate commerce part operations within regulatory taxing power long state action serves local ends discriminate commerce even though exercise powers may materially affect whether resort mechanical test sometimes applied determining interstate commerce begins respect commodity grown manufactured within state sold shipped whether consider power state absence congressional action regulate matters local concern even though regulation affects measure restricts think present regulation within state power applying mechanical test determine interstate commerce begins ends see federal compress warehouse mclean cases cited state minnesota blasius cases cited frequently held purposes local taxation regulation interstate commerce even though manufacturing process slight extent crescent cotton oil mississippi oliver iron mining lord utah power light pfost hope natural gas hall heisler thomas colliery champlin refining corporation commission bayside fish flour gentry regulations manufacture sustained aimed matters local concern effect preventing commerce regulated article kidd pearson champlin refining corporation commission supra sligh kirkwood see capital city dairy ohio thompson consolidated gas utilities cf bayside fish flour gentry supra state also free license tax intrastate buying purchaser expects usual course business resell interstate commerce chassaniol greenwood case gone far hold state license otherwise regulate sale articles within state buyer processing packing normal course business sell ship interstate commerce cases proceed ground taxation regulation involved however drastically may affect interstate commerce nevertheless prohibited commerce clause regulation imposed operation interstate commerce occurs applying test regulation controls disposition including sale purchase raisins processed packed preparatory interstate sale shipment regulation thus applied transactions wholly intrastate raisins ready shipment interstate commerce reason present case distinguished lemke farmers grain shafer farmers grain appellee relies state regulation held invalid business purchased grain within state immediate shipment opinion purchase wheat shipment state without resale processing part interstate commerce compare chassaniol greenwood supra distinction local regulation engaged commerce although commodity produce sell local buyers ultimately destined interstate commerce regulation engage commerce selling product interstate general served serves ready means distinguishing local activities commerce clause appropriate subject state regulation despite effect interstate commerce courts confined mechanical test congress exerted power commerce clause state regulation matters local concern related interstate commerce also operates regulation commerce reconciliation power thus granted reserved state attained accommodation competing demands state national interests involved see di santo pennsylvania compare people state california thompson supra south carolina state highway dept barnwell supra milk control board eisenberg farm products ilinois natural gas central illinois public service regulations state sustained rather see di santo pennsylvania supra cf wickard filburn supra control interstate activities manner affect commerce rather command operations upheld upon consideration relevant facts circumstances appears matter one may appropriately regulated interest safety health local communities local character practical difficulties involved may never adequately dealt congress local character also may wide scope local regulation without substantially impairing national interest regulation commerce single authority without materially obstructing free flow commerce principal objects sought secured commerce clause see minnesota rate cases simpson shepard supra people state california thompson supra may also present case local regulations whose effect upon national commerce conflict coincide policy congress established respect examination evidence case available data raisin industry california may take judicial notice leaves doubt evils attending production marketing raisins state present problem local character urgently demanding state action economic protection engaged one important industries spectacular rise price types california grapes including raisin grapes price raisins reached peak per ton followed large increase acreage accompanying reduction price price raisins years since ranged per ton acreage continued increase production reached peak tons raisin grapes tons raisins since substantial carry year crop result least since industry large increase acreage attendant fall price unable market product compelled sell less parity prices years prices regarded students industry less cost production history industry least since record continuous search expedients stabilize marketing raisin crop maintain price standard bring fair return producers significant relation local interest maintaining program national interest interstate commerce throughout period adoption prorate program raisin crop national government contributed efforts either establishment marketing programs pursuant act congress aiding programs sponsored state local cooperative market stabilization programs raisins approved federal farm board supported large loans marketing agreement california raisins put effect agricultural adjustment act amended stat authorized secretary agriculture order effectuate act declared policy achieving parity prices enter marketing agreements processors producers others engaged handling agricultural commodities current competition burden obstruct way affect interstate foreign raisin proration zone organized latter part proration program adopted crop loans made raisins crop commodity credit corporation aid proration program adopted california act crop substantial part crop pledged commodity credit corporation security loan ultimately sold federal surplus commodities corporation relief distribution substantial purchases raisins crop also made federal surplus commodities corporation although proration program adopted year aid program already noted commodity credit corporation made loans excess tons raisins pledged sold federal surplus marketing administration history shows clearly enough adoption legislative measures prevent demoralization industry stabilizing marketing raisin crop matter state well national concern absence inconsistent congressional action problem whose solution peculiarly within province state exercise power state adopted measure appropriate end sought program aimed discriminate interstate commerce although undoubtedly affected commerce increasing interstate price raisins curtailing interstate shipments undetermined extent effect commerce greater instances far less held afford basis denying right pursue legitimate state end cf kidd pearson supra sligh kirkwood supra champlain refining corporation commission supra south carolina state highway department barnwell supra cases cited page page notes people state california thompson supra cases cited comparing relative weights conflicting local national interests involved significant congress agricultural legislation recognized distressed condition much agricultural production authorized marketing procedures substantially like california prorate program stabilizing marketing agricultural products acting legislation secretary agriculture established large number market stabilization programs agricultural commodities moving interstate commerce various parts country including seven affecting california crops involved tempts one way another prevent agricultural products excessive competition marketing price stabilization ultimate objective like effect restricting shipments raising maintaining prices agricultural commodities moving interstate commerce thus appears whatever effect operation california program may interstate commerce one policy congress aid encourage federal agencies conformity agricultural marketing agreement act agricultural adjustment act effect commerce greater substantially different kind contemplated stabilization programs authorized federal statutes seen agricultural marketing agreement act applicable raisins direction secretary agriculture instead establishing federal program statute authorizes cooperated promoting state program aided substantial federal loans hence say effect state program interstate commerce one conflicts congressional policy preclude state exercise reserved power regulate domestic agricultural production conclude california prorate program raisin crop regulation state industry local concern circumstances case detailed impair national control commerce manner degree forbidden constitution reversed footnotes act june ch statutes california amended chs pp statutes ch extra session chs pp statutes chs pp statutes constitutionality federal state constitutions sustained california agricultural prorate commission superior see also hearings senate committee agriculture forestry march hearings house committee agriculture agricultural marketing agreement act part reenactment certain provisions agricultural adjustment act stat amended stat first introduced reenacted without change price one agricultural commodities purchasing power respect articles farmers buy equivalent purchasing power agricultural commodities base period parity price computed multiplying index prices paid farmers goods used farm production family living expenses together real estate taxes interest farm indebtedness average price base period commodity question see dept agriculture parity prices calculated base period commodities tobacco potatoes august however period august july part thereof may used commodity secretary finds proclaims adequate statistics period available proclamation dated june secretary designated period base period raisins parity price raisins june published department agriculture per ton preliminary figures show average price crop parity prices computed supra vii parity prices raisins previous years published however may computed base period price indices prices paid farmers published department agriculture statistical publications cited infra note computations subsequent years supplied department agriculture indicate price received farmer crop parity price indicate raisin prices since equalled parity field prices crops prior per ton parity commodity credit corporation created executive order october continued existence acts congress stat stat stat reorganization plan stat approved act congress stat effective july following section corporation transferred department agriculture department general direction supervision secretary agriculture executive order exclusive voting rights capital stock vested secretary surplus marketing administration created reorganization plan iii stat approved stat effective june following section consolidation division marketing marketing agreements agricultural adjustment administration federal surplus commodities corporation surplus commodities corporation incorporated october name federal surplus relief corporation existence agency direction secretary agriculture continued acts congress stat stat members corporation secretary agriculture administrator agricultural adjustment administration governor farm credit administration successor corporation surplus marketing administration exercises authority given agricultural adjustment act use annual gross customs receipts encourage exportation domestic consumption persons low income groups agricultural commodities reestablish farmers purchasing power successor division markets marketing agreements administration charged enforcement agricultural marketing agreement act report president commodity credit corporation wm cecil zone agent raisin proration zone raisin program dept agriculture bulletin see also report president commodity credit corporation principal statistical sources tariff commission grapes raisins wines report second series issued pursuant following publications department agriculture yearbook agriculture published annually agricultural statistics published annually since crops markets published quarterly season average prices value production principal crops general discussions economic status raisin industry see grapes raisins wines supra shear gould economic status grape industry university california agricultural experiment station bulletin shear howe factors affecting california raisin sales prices giannini foundation agricultural economics paper studies made auspices university california indicate cost production thompson seedless raisins including growers labor management charge depreciation interest investment per ton farm yielding two tons per acre per ton farm yielding ton per acre yield described yield adams farm management crop manual university california syllabus series another student computed cost production per acre yield ton yield yield shultis standards production labor material costs selected crops livestock enterprises university california extension service field prices thompson seedless raisins since higher years high grapes raisins wines supra parity prices raisins see supra note discussion private efforts within industry prior regulate marketing raisins see grapes raisins wines supra see annual report federal farm board id grapes raisins wines supra shear california grape control plan giannini foundation agricultural economics paper stokdyk west farm board loans made federal farm board shear supra program provided formation single marketing agency destruction diversion use surplus raisins designed federal farm board federal farm board created agricultural marketing act stat authorized board make loans cooperative associations aid effective merchandising agricultural commodities achieve statutory objective placing agriculture economic equality industries see dept agriculture agricultural adjustment marketing program adopted published agricultural adjustment administration department agriculture marketing agreement license effect may agreement provided creation control board representatives packers growers equal voice subject approval secretary agriculture control board fix minimum prices paid growers require percentage crop delivered control board crop required delivered board prices crop fixed per ton muscat sultana thompson seedless raisins respectively report president commodity credit corporation raisins ultimately sold federal surplus commodities corporation relief distribution ibid report federal surplus commodities corporation report president commodity credit corporation report associate administrator agricultural adjustment administration charge division marketing marketing agreements president federal surplus commodities corporation federal loan conditioned upon adoption state proration program crop delivered stabilization pool cecil raisin proration program supra report federal surplus commodities corporation commodity credit corporation similarly made loans crops dried prunes loans crops aid proration programs similar adopted raisins report president commodity credit corporation id report surplus mar keting administration programs nineteen affecting agricultural commodities effect fiscal year ending june report surplus marketing administration pp discussions nature purpose programs see annual reports agricultural adjustment administration nourse marketing agreements