rock royal argued decided june appeals district northern district new york frank murphy atty robert jackson sol milo kniffen cobleskill appellant noyes seward miller new york city appellant dairymen league cooperative john larson washington appellant metropolitan cooperative milk producers bargaining agency leonard acker brooklyn appellee central new york cooperative association willard pratt utica appellees rock royal operative et al justice reed delivered opinion appeals involve validity order secretary agriculture issued tural marketing agreement act regulating handling milk new york metropolitan area october america filed complaint rock royal central new york cooperative association schuyler junction new york milk shed cooperative seeking mandatory injunction requiring defendants representatives comply provisions order november similar action filed jetter dairy company december causes consolidated original proceedings sought relief violations order secretary agriculture also find defendants subject order violation official order issued commissioner agriculture markets state new york two orders pari materia one covering milk moving directly burdening obstructing affecting interstate commerce covering milk intrastate commerce defendant dealer handling milk moving interstate commerce december holton noyes commissioner agriculture markets state new york permitted intervene party plaintiff consolidated action sought injunction commanding defendants representatives comply order determined milk subject order comply order secretary agriculture answers defendants pleaded certain affirmative defenses setting invalidity order improper efforts secure adoption broadly speaking defenses based upon erroneous representations alleged made officials certain private organizations bring approval order upon alleged conspiracy private organizations create monopoly means order motion strike defenses overruled dairymen league cooperative association hereinafter called league metropolitan cooperative milk producers bargaining agency hereinafter called agency permitted intervene combat answers also challenged two orders act contrary fifth fourteenth amendments constitution act involving improper delegation legislative power central new york cooperative association denied power congress enact legislation commerce clause set defense subject either order hearing upon merits district dismissed complaints state order eliminated consideration understanding questioned milk four defendants covered federal order valid held sections ii act ii violate due process clause fifth amendment order discriminatory takes property without compensation approval producers secured unlawful misrepresentation coercion important provisions order authorizing payments cooperative proprietary handlers basis act rock royal unconstitutionality certain sections act congress one ground decision appeal allowed directly statute controversy revolves almost entirely around order back order statute issued agricultural marketing agreement act reenacted amended certain provisions agricultural adjustment act name implies aimed assisting marketing agricultural commodities section declared disruption orderly exchange commodities interstate commerce impairs fixing minimum prices use classification handlers shall pay time payments shall made milk purchased producers associations producers prices shall uniform handlers subject adjustments volume market production differentials customarily applied handlers subject order grade quality milk purchased locations delivery milk use classification thereof made handlers providing ii payment producers associations producers delivering milk handlers uniform prices milk delivered irrespective uses made milk individual handler delivered subject either case adjustments volume market production differentials customarily applied handlers subject order grade quality milk delivered locations delivery milk made adjustment equitably apportion total value milk purchased handler handlers among producers associations producers basis marketings milk representative period time order accomplish purposes set forth paragraphs subsection providing method making adjustments payments among handlers including producers also handlers end total sums paid handler shall equal value milk purchased prices fixed accordance paragraph hereof nothing contained subsection intended shall construed prevent cooperative marketing association qualified provisions act congress february amended sections title known act engaged making collective sales marketing milk products producers thereof blending net proceeds sales purchasing power farmers thus destroying value agricultural assets detriment national public interest interference declared obstruct normal channels interstate commerce markets use classifications making distribution thereof producers accordance contract association producers provided shall sell milk products handler use consumption market prices less prices fixed pursuant paragraph subsection milk marketing agreement order applicable milk products marketing area shall prohibit manner limit case products milk marketing area milk product thereof produced production area relates products milk case agricultural commodities products thereof specified subsection orders shall contain one following terms conditions prohibiting unfair methods competition unfair trade practices handling thereof providing except milk cream sold consumption fluid form commodity product thereof grade size quality thereof shall sold handlers thereof prices filed handlers manner provided order providing selection secretary agriculture method selection agency agencies defining powers duties shall include powers administer order accordance terms provisions ii make rules regulations effectuate terms provisions order iii receive investigate report secretary agriculture complaints violations order iv recommend secretary agriculture amendments order person acting member agency established pursuant paragraph shall deemed acting official section declared policy congress exercise powers conferred upon secretary agriculture establish maintain orderly marketing conditions agricultural commodities interstate commerce establish prices farmers level give agricultural commodities capacity within meaning section title unless person receives compensation personal services funds incidental inconsistent terms conditions specified subsections necessary effectuate provisions order secretary agriculture prior prescribing term marketing agreement order amendment thereto relating milk products term fix minimum prices paid producers associations producers prior modifying price fixed term shall ascertain accordance section section title prices give commodities purchasing power equivalent purchasing power base period level prices declared policy congress establish section section title shall purposes agreement order amendment level reflect price feeds available supplies feeds economic conditions affect market supply demand milk products marketing area contemplated marketing agreement order amendment relates whenever secretary finds upon basis evidence adduced hearing required section title section case may prices give commodities purchasing power equivalent purchasing power base period determined pursuant section section title reasonable view price feeds available supplies feeds economic conditions affect market supply demand milk products marketing area contemplated agreement order amendment relates shall fix prices finds reflect factors insure sufficient quantity pure wholesome milk public interest thereafter secretary finds necessary account changed circumstances shall due notice opportunity hearing make adjustments prices purchasing power respect articles farmers buy equivalent purchasing power agricultural commodities base period section act base period agricultural commodities except tobacco potatoes fixed period august july purchasing power base period satisfactorily determined available statistics within department agriculture secretary authorized take base period august july portion thereof section prescribing minimum prices milk statute authorizes secretary fix minimum prices without restriction purchasing power base period reflect prices available supplies feed economic conditions finds hearing minimum prices base period purchasing power unreasonable section section gives jurisdiction district courts enforce prevent restrain person violating orders regulations agreements provisions section authorizes secretary agriculture enter marketing agreements producers others engaged handling agricultural commodities affecting interstate commerce agreements may agricultural commodities products entirely voluntary may cover handling commodity person engaged various operations processing distribution agreements involved incidentally proceeding section provides use orders instead agreements certain situations orders apply specified commodities including milk entered secretary agriculture son believe issuance order tend effectuate declared policy act respect commodity product thereof notice opportunity hearing necessary also secretary agriculture set forth order finding upon evidence introduced hearing issuance order terms conditions thereof tend effectuate declared policy commodity milk act order contain one terms specified section others except certain terms common orders set section terms used order examination referred later orders may hearing upon marketing agreement regulates handling commodity manner order without special determination secretary agriculture approval president orders become effective unless approved handlers required act notwithstanding refusal failure handlers sign marketing agreement relating commodity secretary agriculture approval president may issue order without adoption agreement determines refusal failure handlers sign marketing agreement tends prevent effectuation declared policy respect commodity issuance order practical means advancing interest producers case order must approved favored producers number volume engaged representative period production market commodity within production area engaged production commodity sale marketing area specified marketing agreement order section section authorizes referendum determine whether issuance order approved producers section provides secretary shall consider approval disapproval cooperative association approval disapproval producers members stockholders patrons cooperative association section provides administrative review secretary petition handler objecting provision accordance law seeking modification exemption therefrom district courts jurisdiction review ruling accordance provisions act secretary agriculture promulgating order conducted public hearings attended handlers producers consumers milk representatives throughout milkshed defendant however represented hearings followed presentation agency secretary commissioner proposed marketing agreement order regulating handling milk new york marketing area request action federal new york statutes hearings jointly held federal state governments cooperation two governments culmination course investigation legislation continued many years problem standpoint new york fully considered results set report joint legislative committee investigate milk industry investigation followed creation milk control board broad powers regulate dairy business state board power fix prices paid purchasers charged consumers later new york act authorized state commissioner cooperate federal authorities acting present marketing agreement act issue orders supplementary federal government carried joint administration problems concerned maintenance distribution adequate supply milk metropolitan centers well understood producers handlers milkshed marketing area metropolitan new york problems peculiarly acute generally recognized chief cause fluctuating prices supplies existence normal surplus necessary furnish adequate amount peak periods consumption results excess production troughs demand milk highly perishable fertile field growth bacteria yet essential item diet desirable equate production close sanitary supervision meet constantly varying needs sale milk metropolitan new york ringed around requirements health departments assure purity supply farms equipment approved health authorities marketing area operated accordance requirements permitted market milk sixty thousand dairies located new york connecticut massachusetts maryland new jersey pennsylvania vermont hold certificates inspection approval department health city new york five hundred receiving plants similarly scattered approved receiving shipping grades milk since milk produced find ready market fluid milk flush periods surplus must move cream butter cheese milk powder less nonperishable products since manufactures competition similar dairy products prices milk absorbed manufacturing processes must necessarily meet competition production areas far removed metropolitan centers market fluid milk use food beverage profitable producer consequently producers strive fluid milk market obvious marketing fluid milk new york contacts least entire national dairy industry approval dairies department health new york city condition sale fluid milk metropolitan area isolates general competition well recognized segment entire industry since producers numerous enough keep volume fluid milk new york distribution beyond ordinary requirements competition even among threaten quality end quantity fluid milk deemed suitable new york consumption students problem generally apparently recognized fair division among producers fluid milk market utilization rest available supply dairy staples appropriate method attack solution order attempt make effective arrangement authority agricultural marketing agreement act order secretary agriculture found milk produced new york marketing area actually moves interstate commerce remaining produced within state new york inextricably intermingled interstate milk handled either current interstate commerce affect burden obstruct interstate commerce subtract total payments required made month section article vii total payments claimed pursuant section article vii add amount cash producer settlement fund divide result total quantity milk represented sum obtained pursuant paragraph section subtract less cents cents provide contingency errors reports payments delinquencies payments handlers result shall known uniform price month milk containing percent butterfat received producers plants mile zone article vii section day month handler association producers shall make payment producer milk delivered producer plant preceding month less uniform price subject differentials set forth sections article article vii sec location uniform ice shall plus minus differential shown column schedule contained section article iv zone plant established purposes section article iv plus cents case plants located counties listed paragraph section article vi article vii sec cooperative cooperative association producers may apply secretary determination qualifications receive payments pursuant section reason exercising full authority sale milk members using best efforts supply times short supply class milk marketing area secure utilization milk times long supply manner assure greatest possible returns producers entire activities control members payments shall made cooperative association producers following conditions following rates one cent per hundredweight net pooled milk handler plant caused delivered members milk products exception made milk regulated order commissioner agriculture markets state new york secretary found prices calculated accordance agricultural marketing agreement act association handler made reports payments required order except set forth paragraph section cents per hundredweight net pooled milk plants handlers reported collected association five cents per hundredweight net pooled milk plants operated association addition qualifications association determined secretary sufficient plant capacity receive milk producers members willing able receive milk producers members cents per hundredweight net pooled milk caused delivered handler reported collected association market service market administrator shall pay producer settlement fund handler immediately audit claim payment made forms supplied market administrator respect milk received producers plant operated handler equipped receiving shipping milk marketing area month except november december moved plant utilized classes month october operated handler class milk shipped marketing area month cents per hundredweight milk moved plus cents per hundredweight first five miles fraction thereof plus cent per hundredweight per mile next miles plus cent per hundredweight per additional mile shortest highway distance two plants thirty cents per hundredweight class milk sold months november december marketing area received producers plant equipped condensing drying milk months may june preceding terms equivalent milk received plant milk excess percent cream excess percent shipped marketing area give milk purchasing power equivalent parities mentioned sections act reasonable view supplies prices feeds economic conditions affect supply demand milk fixed minimum price milk determined time time formula order marketing area defined city new york counties nassau suffolk westchester producer person producing milk delivered handler plant approved health authority receiving milk sale marketing area handler person engaged handling milk cream received approved plant similar sale includes cooperative associations administrative sections order setting milk administrator defining duties attacked classify milk article iv important since establishes minimum prices milk various differentials based upon use butter fat content distances points production consumption unnecessary analyze purposes opinion sufficient say example minimum price handler pay milk fixed formula varies range score butter wholesale new york market days preceding day preceding month handlers required file reports receipts utilization milk various classes understood however minimum price amount producer receives price level called calculated actual amount dollars cents receive article vi uniform price computed uniform price producer actually paid proprietary noncooperative handlers uniform price determined computation substance multiplies amount milk classified according use received handlers less certain quantities milk permitted deducted minimum prices fixed article iv different classes milk result various payments reservations deducted remainder divided total quantity milk received equalize handlers pay producer settlement fund much operation made clear summarizing provisions article vii require handlers shall pay producer settlement fund amount purchased milk multiplied minimum prices various classes greater purchased milk multiplied uniform price handlers purchased milk multiplied minimum prices less multiplied uniform price producer settlement fund pays difference distribution producers provisions give uniform prices producers exceptions herein stated accordance general use milk preceding period provisions order upon attack made pointed discussion particular objections suspension order developed argument causes secretary agriculture march suspended order account effect decree administration enforcement section since suspension authorized statute order preserves accrued rights opinion step make proceedings moot reports receipts classified sales milk accounting pool obligations determination uniform price settlement producers basis order well payment money sought defendants controversy validity order power enforce provisions remains adoption order considering validity marketing act provisions order attack shall examine contention defendants order adopted circumstances require equity refuse enforce dealers refused failed sign proposed marketing agreement secretary conducted referendum section ascertain whether issuance order approved producers required section vigorous campaigns waged proponents opponents order among proponents league agency vote secretary august approval president determined issuance order favored least producers declared effective september defendants base appeal conscience chancellor upon matters connected referendum claim amount fraud adoption alleged fraud said consist widespread public misrepresentations effect producers receive price milk conspiracy league others convert state national acts instruments creation monopoly large handlers sale fluid milk marketing area findings supporting charges misrepresentation conspiracy may summarized determining intervening plaintiffs league agency participated actively proposing adopting inducing producers handlers accept order greater detail findings show league instrumental organization agency representatives upon agency board directors agency acted organization promoting action federal state acts league agency published papers gave vigorous support campaign approval order time hearings agency issued explanatory booklet stating equal purchasing price paid dealers milk use producer share equally benefits fluid milk market agency league announced repeatedly handlers required pay uniform price handler receive competitive advantage others agency expended december june latter date september date order went effect actively supported order program voting order took place august votes counted valid referendum percent favor issuance order percent opposed favorable votes league cast supporting evidence beyond coordinated activities agency league cooperatives charge conspiracy monopolize securing adoption order found district provisions order competitive advantages cooperatives order thought indicate improper influence drafting discussed later point view legality permissible classification found conspiracy obtain monopoly carried coercive tactics part producers leadership league agency tactics consisted threats handlers comply order producers withhold delivery milk schemes lower determined successful securing drafting adoption acceptance order conspiracy monopolize interstate commerce contrary sherman act note established held occurrence incidents detailed compelled refusal injunction agree considering manner adoption order validity act provisions order must assumed order submitted producers approval hearings specified statute full text order explanatory pamphlets mailed prospective voter face fact erroneous statements permitted render submission futile evidence producer misunderstood casual sentence one pamphlets department agriculture number statements publications league agency effect dealers pay producers uniform price milk assertions need qualifications given order applicable milk sold outside marketing area milk handled cooperatives variation facts immaterial view value volume milk involved order article vii plainly stated cooperatives covered payment requirements appeared also milk sold outside marketing area within terms study official form order cleared misconception created language secretary agriculture declared producers affected order approved terms litigants deny voters voted institution order authority courts go behind conclusion secretary inquire influences caused producers favor resolution coercion league agency exercised upon handlers adoption order force induce acquiesce operation indirect character alleged misrepresentation partisan coercion producer seeking compel dealer support plan threat use economic power milk coercion ineffective upon defendants producers organizations urged papers meetings diversion milk handlers influence agree order efforts effect prior vote producers quite true league cast favorable votes position cast total qualified vote order arises provision act authorizing cooperatives express approval disapproval members patrons unreasonable provision cooperative marketing agency votes power congress put order effect manner demonstration approval likewise control associations producers milk vital interest establishment efficient marketing system quately explains interest securing adoption order believed favorable purpose ulterior motives corporate aggrandizement stimulated activities efforts thereby rendered unlawful act order otherwise valid fact effect give cooperatives monopoly market violate sherman act justify refusal injunction correlation order act another phase argument order affected validity act application order therefore ready disposition constitutional questions need reached defendants contend statutory basis sections order exempting cooperatives payment uniform authorizing payments certain handlers producer settlement fund government makes point none defendants handlers object terms order producers delivering milk cooperatives affected exemption cooperative handlers requirement pay less uniform price producers affected use pooled money sections payments cooperative handlers although three defendants complain benefits conferred upon cooperatives cooperatives defendant jetter dairy company standing raise issue want statutory authority except cooperative handlers payment uniform price proprietary corporation handler milk required order pay uniform prices milk purchases requirement pay uniform prices arises provisions article iv shall pay minimum prices two except deduction certain service payments cooperatives excepted payment burden payment laid directly upon jetter others excepted none defendants hand position raise issue lack statutory authority payments authorized article vii sections whether cooperative defendant corporations financial interest producer settlement fund defendants pay draw fund accordance utilization milk delivered patrons defendants profit loss depends upon spread receives class price sale price deductions fund small nothing patron receives higher uniform price handler affected consider whether act authorizes exception cooperatives uniform payment provisions article vii section authority exists section act earlier paragraphs provide minimum prices paid handlers producers associations producers subject usual quality location differentials important require minimum prices paid cooperatives handlers definition exception cooperatives subsection shall prevent cooperative making distribution thereof net proceeds accordance contract association producers language specifically permits indeed requires order except cooperatives requirement paying minimum prices producers minimum price paid producer payment uniform price equalization pool authority act except cooperative payment uniform price terms order certain provisions order found district show unconstitutional discrimination one defendants discriminations complaint made arise application new york problem section act relating milk uniform price jetter dairy company proprietary handler urges milk cooperatives need pay producers uniform price unreasonably discriminatory violative due process clause fifth amendment require pay uniform price section definition type cooperative permitted settle members accordance membership contract general characteristics cooperatives well understood act defines cooperatives associations producers corporate otherwise without capital stock marketing product mutual benefit members producers equal voting privileges restricted dividends capital employed dealings limited percent products different treatment accorded marketing cooperatives state federal legislation alike indeed secretary charged act recognition encouragement controlled cooperative associations harmony policy toward cooperative associations set forth existing acts congress tend promote efficient methods marketing distribution agricultural cooperatives means farmers stockmen enter processing distribution crops livestock distinctions cooperatives business organizations repeatedly held justify different treatment frost corporation fact recognized validity classification commission enjoined issuing license operation cooperative cotton gin proviso directing petition citizens taxpayers without showing public necessity required ginners applicant organized profit though dividends limited membership confined producers thought distinctions reasonable relation subject legislation special opportunities cooperatives said reason doubt classification valid applied true cooperatives producer cooperative seeks return members largest possible portion dollar necessarily spent consumer product deductions modest distribution costs without profit membership cooperative limited profit stock cooperative organized producers mutual benefit reason may assumed seek distribute largest amounts patrons commodity handled cooperative corresponds purposes capital business corporation either may cut sale prices cost one long members deliver long assets permit proprietary corporations lower sales prices naturally seek lower purchase prices profit depends spread hand cooperative pass reduction selling price less expense available distribution patrons members bear burden price cutting reasonable exempt payment fixed price cooperative member measures return market uniform price business handler pays commodities wide market staple dairy products quotations readily available distributions equal open prices cooperators reactions parallel stockholders losing businesses neither act order protects anyone lawful competition essential find unreasonable discrimination excepting producers cooperatives requirement pay uniform price unpriced milk another discrimination said reside part order limits minimum prices milk marketing area passes plant marketing area milk though production area milk figure computation uniform price priced unpriced milk dealt handler must furnish statement producer showing percentage milk paid uniform price defendants handle milk sold marketing area assert reasonable discrimination results favor handlers league market milk outside marketing area basis complaint large dealers cooperative handlers extensive gathering distributing facilities permitted purchase milk throughout milk shed price please milk pass plant marketing area sell price please provided sale outside limited new york marketing area reason fact milk sells new jersey new york greater profit made handler desires handler use profit replace losses new york area sales still position pay uniform price producers pool milk said create discrimination defendants possible handlers unpriced milk use profits profitable extra area trade way suggested equally possible order competitive situation order create deal view discrimination reason situation district found handlers unpriced milk permitted blend prices paid purported paid milk sold markets uniform price announced administrator milk sold area thereby reducing actual price paid handlers milk sold metropolitan area competition milk sold defendants price figured handler unpriced milk lower actual market value handler blending thereby permitted pay producers milk less order price less actual value thereof erroneous suppose buying milk less minimum price paid milk sold marketing area reduced price paid milk sold proprietary handlers area uniform price unpriced milk producer may bought less average paid producer may minimum part sold marketing area passing plants located minimum paid justifies language finding handler blending thereby permitted pay producers milk less order price nearby differentials provision made order special differentials cents milk certain counties located favorably marketing area enable handlers pay producers plants five cent difference absorbed handlers act authorizes arrangement found discriminatory producers district finding conclusion law discrimination defendants district opinion unfair defendants patrons counties defendants urge advantages arrangement competitors patrons counties near locations freight differentials considered lower transportation costs differential increases milk prices producers payment tends stimulate production larger production means benefit freight advantage competitors discrimination seems fanciful remote justify overturning secretary determination propriety differentials evidence found lower substantial administrative determination carries presumption existence state facts justifying action far strong overturned suggestions made ii constitutionality act minimum prices act authorizes order undertakes fixing minimum prices purchase milk current interstate foreign commerce directly burdens obstructs affects interstate foreign commerce milk challenge fact milk four defendants reaches marketing area channels interstate commerce question raised power congress regulate distribution area wholly intrastate milk recognized federal authority covers sales milk marketing inextricably intermingled directly affects marketing area milk moves across state lines challenge regulation price paid upon sale dairy farmer delivers milk country plant urged sale local transaction fully completed interstate commerce begins attempt fix price elements incident violates tenth amendment commodities bought use beyond state lines sale part interstate merce likewise held sales interstate transportation commingled intrastate transactions existence local activity interfere federal power regulate inspection whole activities conducted within state lines fact alone escape sweep commerce clause interstate commerce may dependent upon power establish quotas interstate marketing gives power name quotas left within state production local foreign milk alike drawn general plan protecting interstate commerce commodity interferences burdens obstructions arising excessive surplus social sanitary evils low values power congress extends also local sales power commerce exists complete perfect exercised fix wage scale limited railroad fees charges exchanges authority federal government interstate commerce differ extent character retained intrastate merce since munn illinois occasion repeatedly give consideration action regulating prices recently upon reexamination grounds state power prices power phrased mean proper occasion appropriate measures state may regulate business aspects including prices charged products commodities sells power state fix price milk adjudicated people great cities depend largely upon adequate supply pure fresh milk essential health consumer willing forego unrestricted competition low cost territory assured producer compliance sanitary requirements enforced municipal health authorities belongs category commodities many years subjected regulatory power state thorough exposition milk situation new york shed made nebbia case nothing add said save point since decision held state prohibit sale imported milk purchase price prescribed minimum pennsylvania regulatory law including minimum prices plied absence federal legislation milk purchased pennsylvania shipment new york marketing hegeman farms sustained new york milk control statute complaint price limits arbitrary variation prices charged consumer dealers dealers well advertised trade names upheld power enjoyed regulate prices handling selling commodities within internal rests congress commerce equalization pool order equalize prices received producers handlers required clear purchases producer settlement fund payments withdrawals fund depend upon milk received fixed order different prices governed use made handler purchased milk upon whether obligations producers greater less uniform price due producers scheme result use device equalization pool producer dealing proprietary handler gets uniform weighted average price milk differentials quality location usual market variations irrespective manner use act section ii order articles iv vi vii authorize adjustment defendants objection equalization pool considered disbursements fund expenses standby marketing services authorized article vii sections concerning hold handler standing complain alleged deprivation liberty property accomplished pooling requirement taking away defendants right acquire milk patrons minimum class price according use forcing handlers pay surplus uniform price equalization pool instead patrons argument assumes validity price regulation denies constitutionality pooling arrangement handlers liberty pay producer accordance use producer milk must distribute surplus others whose milk resold less advantageously urged carry principle contribution logical conclusion mean wages employed shared unemployed highly paid underpaid receipts able fortunate diligent incompetent unlucky drone exaggerated equalization wealth opportunity proposed pool device reasonably adapted allow regulation interstate market upon terms minimize results restrictions ancillary price regulation designed price provision foster protect encourage interstate commerce smoothing difficulties surplus competition burdened marketing mulford made clear volume commodity movement might controlled discouraged congress clearly right permit limited amounts milk move interstate commerce opinion might permit movement terms pool settlement provided common funds equalizing risks unknown considered violative due process pooling principle upheld workmen bank deposit distribution benefits transportation act defendants rely particularly upon thompson consolidated gas utilities railroad retirement board alton thompson case texas railroad commission ordered proration gas production panhandle assumed proration prevent waste protect correlative rights pool valid held proration order issue none purposes purpose compel market outlets purchase gas potential producers market deemed reasonably related conservation gas protection correlative rights retirement board case pooling principle involved found invalid burdens roads equalized benefits entry service made different age levels different roads employees seventy older required retire roads none solvent insolvent roads liable alike carriers treated single employer provisions deemed unequal led conclusion manner pooling funds denied due process case pooling differentials cover variations quality location delegation three issues delegation presented delegation authority secretary agriculture establish marketing areas delegation authority producers approve marketing order without agreement handlers delegation authority cooperatives cast votes producer patrons earliest days congress compelled leave administrative officers government authority determine facts put legislation effect details regulations implement general enactments well settled therefore argument constitutionality act say delegates broad powers executives determine details legislative scheme necessary authority never denied dealing legislation involving questions economic adjustment enactment must considered determine whether purpose congress seeks accomplish standards purpose worked sufficient exactness enable affected understand limits within tests congress needs specify far reasonably practicable present act believe satisfies tests delegation secretary agriculture purpose act establish maintain orderly marketing conditions agricultural commodities interstate commerce establish prices farmers level give agricultural commodities purchasing power respect articles farmers buy equivalent purchasing power agricultural commodities base period accomplish secretary agriculture directed issue orders whenever reason believe issuance order tend effectuate declared policy act unlike language national industrial recovery act condemned schechter case page page tests determine purpose powers dependent upon conclusion defined recovery act declaration policy couched general terms act restore parity prices section recovery act general welfare might sought codes industry formulated express standards fair competition businesses covered terms orders limited specific provisions minutely set considerable flexibility provided gives opportunity include provisions auxiliary definitely specified secretary permitted freedom choice commodities may attempt aid order act section limits milk fresh fruits except apples tobacco fresh vegetables soybeans naval stores act authorizes marketing agreement order issued production marketing regions areas practicable city milkshed seems homogeneous standard practicality limit power issue orders determines order may promulgated observed order issued hearing findings required section public hearings held albany malone syracuse elmira new york may june four days recess nearly three thousand pages testimony introduced documentary exhibits twenty briefs interested parties filed july secretary federal register notified public findings terms order invited comment numerous parties filed briefs right statute given handlers object secretary provision order accordance law privilege appeal courts section even though procedural safeguards validate unconstitutional delegation furnish protection arbitrary use properly delegated authority provision act noted employed standard determine minimum price section acting section secretary fixed fluctuating minimum price based upon wholesale butter prices new york true determination price section less definite standard parity tests sections say beyond power congress leave determination designated administrator standards named secretary must first determined prices accordance section section prices give commodity purchasing power equivalent base period considering price supply feed pertinent economic conditions affecting milk market area finds price determined unreasonable fixed level reflect factors provide adequate quantities wholesome milk public interest price determined mathematical formula standards give ample indications various factors considered secretary delegation producers section act provided order shall become effective notwithstanding failure percent handlers approve similar agreement secretary agriculture approval president determines among things issuance order approved thirds producers interested interested producers thirds volume produced market specified production area subsection provided purpose ascertaining whether issuance order approved secretary may conduct referendum among producers objection made unlawful delegation producers legislative power put order effect market considering question must assume congress power put order effect without approval anyone whether producer approval election necessary question reserve requirement approval invalid delegation authorization cooperatives cast votes producer patrons objection falls answering argument inasmuch congress place order effect without vote permissible provide approval disapproval way manner may choose cooperatives equalization fund defendant central new york cooperative association denies liability articles vi vii viii order ground liable pay net pool obligation administrative fund meet expenses administration asserted reason freedom liability cooperative composed milk producers distributes milk members others agent cooperative owns farms members dairy farmers contract agree deliver milk produced said milk marketed distributed cooperative latter pay milk price based upon amount received less expenses members milk marketed contract cooperative leases receiving distributing facilities business corporation milk received cooperative receiving plants shipped city depot distributes business corporations wholly owned subsidiaries cooperative distributing subsidiaries use leased physical facilities verbal contracts cooperative cooperative receives net amount sales distributes patrons license director division milk control new york permitting marketing manner described section authorizes order classify milk fix minimum prices handlers shall pay milk purchased producers section authorizes equalization pool handlers payment settlement fund urged cooperatives merely act agents members included handlers purchasing producers said definitely shown provisions providing nothing contained subsection shall construed prevent cooperative making distribution accordance contract order defines handler including cooperative association respect milk received producers plant operated association respect milk causes delivered handlers provisions order article vii sections cooperative handlers handlers equalize purchases payment producer settlement fund even though required pay uniform price producers reason exception article vii section provisions explained cooperative contracts two general types sale agency central new york cooperative operates agency type obvious use word act section exclude type cooperative drawn however made apply type without distinction indicate intention distinguish two types section thorizes orders section makes distinction orders applicable associations producers others engaged handling commodities reports bill show effort differentiate neither debates congress statutory provisions equalization burdens surplus rendered nugatory exception cooperatives administrative construction include organizations handlers agree used word means marketing subsection construed freeing agents cooperative proprietary requirement account minimum prices milk handled corollary contention made also central cooperative cooperative may required pay surplus receipts uniform prices equalization fund based upon construction section permitting cooperative make settlement members accordance terms contract cooperative members freed burden carrying proportion milk going manufacturing use discrimination favor strongly marked construction required cooperatives covered section provisions order except payment uniform price payments uniform price fall members view administrative construction correct proceeds refer result cooperative sales marketing area complying equalization requirements defendant central new york cooperative association raises final point determining net pool obligation handler milk received handler authorized subtract pro rata class milk involved pool quantity milk received handler farm determined cooperative though marketing milk agency contract members handler subject act order cooperative argues members farmers need account pool personal sales consumers cooperative utilized agent market farmers milk obligation contribute equalization cooperative farm handler act must pay producer settlement fund inasmuch defendants appeals handling milk interstate commerce petition enforcement official order issued laws state new york concerning milk covered order secretary agriculture dismissed order district nos reversed causes remanded instructions enter order specifically enforcing time suspension provisions order issued secretary agriculture august regulating handling milk new york marketing area defendants enjoining defendants officers agents servants violation order order district dismissing petition holton noyes commissioner agriculture markets state new york affirmed ordered reversed remanded part affirmed part justice black justice douglas concur judgment opinion except insofar opinion appears imply power congress enact marketing law depends upon use nature milk believe called upon case indicate think constitutional limitation power congress regulate interstate commerce justice mcreynolds justice butler dissenting opinion decree affirmed view challenged order secretary must succumb two manifest objections unnecessary us dissect record search impediments first congress possesses powers delegated others opinion schechter poultry corporation modernity reaffirmation ancient sufficiently demonstrates absence congressional authority manage private business affairs transparent guise regulating interstate commerce true production distribution milk important enterprises easy wise execution breeding cows authors commodity also sowing reaping fodder inspires second perchance congress possesses power manage milk business within various authority committed another cursory examination statute shows clearly enough design allow secretary prescribe according errant execute government law caprice whimseys may displace ate action chosen representatives become rules conduct us outcome seems wholly incompatible system supposed live justice roberts nos expressed views unconstitutionality provisions agricultural marketing agreement act et involved view attempted delegation legislative powers matter pressed present cases need advert subject opinion nevertheless order respects discussed authorized act authorized deprives appellees property without due process law violation fifth amendment conclusion based upon findings fact district findings question subject assignments error appellants failed either brief oral argument point lack substantial support evidence examination record discloses findings based uncontradicted testimony authentic documentary evidence stipulation parties therefore accepted may briefly recapitulated terms act order appellees handlers dairymen league cooperative association appellant likewise handler art vii sec order day month handler cooperative association producers required pay producer uniform price fixed order milk delivered producer preceding month sold marketing area cooperative associations handlers required make payment similar milk uniform price stated price art vii sec requires handlers day month pay market administrator producer settlement fund amount net pool obligation preceding month greater amount obtained multiplying net pool milk handler uniform price thus handler required pay fund milk used marketing area difference per cwt uniform price class milk handlers selling milk received producers production area marketed outside marketing area denominated milk required pay uniform price milk pay fund difference uniform price actual market value milk fixed amount respect thereof permitted blend prices paid purported paid unpriced milk uniform price announced administrator milk sold marketing area thereby reducing actual price paid milk sold marketing area competition handlers sell milk area pamphlet issued secretary provisions order construed method accounting described follows handler may multiply total pounds milk sold area uniform price multiply total pounds milk sold markets called milk prices sees fit add totals divide total pounds milk obtain average price paid producers milk price figured handler unpriced milk lower actual market value handler blending thereby permitted pay producers milk less order price less actual value thereof appellees receiving stations production area supply marketing area defined order appellee jetter dairy company sells milk competition dealers operating milk receiving stations production area new york ship milk received stations marketing area appellees buy milk sold independent dealers competition milk received stations producing area several appellees largest competitors including dairymen league cooperative sell large proportions milk outside marketing area northern new jersey milk control board new jersey fixed base price per cwt producers milk country milk plants price effect period covered order board fixed wholesale prices dealers stores eleven cents per quart bottled glass two rural districts twelve cents per quart glass three heavily populated districts fixed minimum price consumers stores two rural districts twelve cents per quart heavily populated districts thirteen cents per quart resale prices fixed marketing area either dealers stores stores consumers fair market value class milk produced production area sold handlers new jersey period order force per cwt whereas uniform price milk fixed administrator september october november per dairymen league paid producers base price milk zone september october november per cwt thus difference value class milk sold dairymen league new jersey prices paid producers per cwt september tober november per cwt pounds milk sold new jersey dairymen league amounts sheffield farms company competitor appellees utilized september pounds class milk new york state pounds milk new jersey well milk markets market unpriced milk company negotiated producers pay uniform order price market milk base price paid therefore cents per cwt less price fixed new jersey control board difference amounted cents per cwt milk price paid class milk reduced amount similar spreads shown company purchases october based upon facts finds prices paid producers delivering handlers whether cooperative proprietary sell fluid milk marketing area also state new jersey markets less actual value milk delivered due process blending prices milk sold outside marketing area bear true relation actual value thereof prices charged milk sold area evident terms order secretary construction handlers use milk may fix price choose fix thus contrary requirement section statute producers receive uniform price milk necessary effect provision permitting blending price paid producers milk sold keting area arbitrary price fixed milk effect upon handler whose trade solely marketing area disastrous lower price paid permitted blend makes possible resell milk marketing area resale price fixed cut rate destructive competitors business evidence handlers cooperative proprietary taken advantage terms order cut price milk consumers marketing area disadvantage competitors appellants make answer appellees attack feature order opinion detriment smaller handlers sell milk use marketing area result competitive conditions order affect evident order freezes minimum price paid many handlers leaves price handlers compete open reduction device blending nothing act authorizes discrimination worked order permitting handlers whether proprietary cooperative blend prices unpriced milk milk sold marketing area section read prohibits practice cooperatives order provided milk sold new jersey accounted pool actual value milk sold accounted pool competitors obtained advantage seriously injures business appellees order drawn administered inevitably tends destroy business smaller handlers placing mercy larger competitors think arrangement contemplated act operates deny appellees due process law think decree affirmed chief justice joins opinion far relates invalidity order ground stated justice mcreynolds justice butler also join opinion footnotes act june stat et seq authorized see noyes erie wyoming farmers misc sec act stat pertinent portions act follows act sec secretary agriculture shall subject provisions section issue time time amend orders applicable processors associations producers others engaged handling agricultural commodity product thereof specified subsection section issued pursuant section shall applicable following agricultural commodities products thereof except products naval stores regional market classification commodity product milk fruits including pecans walnuts including apples including fruits olives canning tobacco vegetables including vegetables asparagus canning soybeans naval stores included naval stores act sections title standards established thereunder including refined partially refined oleoresin secretary agriculture reason believe issuance order tend effectuate declared policy title chapter respect commodity product thereof specified subsection section shall give due notice opportunity hearing upon proposed order notice opportunity hearing secretary agriculture shall issue order finds sets forth order upon evidence introduced hearing addition findings may specifically required section issuance order terms conditions thereof tend effectuate declared policy title chapter respect commodity case milk products orders issued pursuant section shall contain one following terms conditions except provided subsection others classifying milk accordance form purpose used fixing providing method continues next page act may stat amended stat et seq sec sec sec sec sec certain powers upheld nebbia new york nebbia new york baldwin seelig hegeman farms baldwin pertinent portions follows order article vi section pool obligation net pool obligation handler milk received producers month shall sum money computed month follows determine total quantity milk class plant subtract quantity milk class quantity milk received plants handlers subtract pro rata class quantity milk received handler farm subtract remaining quantity milk class quantity prices section article iv apply result shall known pooled milk class multiply total quantity net pooled milk class plants handler combined respective class prices set forth section article iv add together resulting sums deduct cents per hundredweight net pooled milk received producers plants counties portions counties listed section result thus obtained shall known net pool obligation jersey hunterdon somerset essex union morris warren sussex passaic new york columbia dutchess nassau orange putnam suffolk westchester connecticut litchfield massachusetts berkshire towns ulster county new york marbletown hurley kingstown ulster rosendale esopus new paltz lloyd gardiner plattekill marlborough shawangunk computation uniform market administrator shall day month audit mathematical correctness obvious errors final report submitted preceding month handler day month compute corrected reports uniform price following manner combine one total net pool obligations handlers section cf california water service city redding article vii section article vii sections article vii section currin wallace board trade chicago olsen oliver iron mining lord gorieb fox cf carmichael southern coal steward machine davis article section subsec stat clayton act stat act stat volstead act stat war finance corporation act stat amended stat grain futures act stat agricultural marketing act stat hanna law cooperative marketing associations agricultural adjustment act sec stat amended sec act august stat adopted sec act june stat flint stone tracy brushaber union pacific railroad chicago board trade olsen liberty warehouse burley tobacco growers cooperative association government furnishes us collection state cases approving special advantages given tobacco growers coop asso jones kansas wheat growers schulte brown staple cotton growers miss northern wisconsin bekkedal dark tobacco gr asso dunn minnesota wheat growers huggins list burley tobacco growers ohio dark tobacco growers asso robertson potter dark tobacco growers harrell cane growers nebraska wheat growers norquest neb warren alabama farm cotton association manchester dairy system hayward clear lake live stock association weir iowa hollingsworth texas hay washington cranberry asso moore poultry producers barlow cal oregon growers asso lentz south carolina cotton growers english milk producers marketing bell barns dairymen operative association page page cf corporations law new orleans railroad ellerman alabama power ickes order article vii section order article vi section order article vii section borden farm products baldwin pacific box basket white section stafford wallace board trade chicago olsen houston east west texas ry minnesota rate cases simpson shepard labor board cases national labor relations board jones laughlin steel currin wallace mulford smith decided april national labor relations board fainblatt decided april milling bondurant lemke farmers grain cf packing haydel currin wallace consolidated edison national labor relations board mulford smith supra note gibbons ogden wheat minnesota rate cases simpson shepard wilson new stat tagg moorhead stafford wallace munn illinois budd new york brass north dakota german alliance insurance lewis young hartford insurance nebbia new york west coast hotel parrish townsend yeomans wolff packing industrial tyson bro banton fairmont creamery minnesota ribnik mcbride williams standard oil nebbia new york id baldwin seelig milk control board eisenberg farm products february borden ten eyck nebbia new york townsend yeomans supra note mountain timber washington new york central railroad white noble state bank haskell abie state bank bryan new england divisions case dayton goose creek railway et panama refining ryan schechter currin wallace buttfield stranahan chemical foundation monongahela bridge grimaud avent national emergency productive widespread unemployment disorganization industry burdens interstate foreign commerce affects public welfare undermines standards living american people hereby declared exist hereby declared policy congress remove obstructions free flow interstate foreign commerce tend diminish amount thereof provide general welfare promoting organization industry purpose cooperative action among trade groups induce maintain action labor management adequate governmental sanctions supervision eliminate unfair competitive practices promote fullest possible utilization present productive capacity industries avoid undue restriction production except may temporarily required increase consumption industrial agricultural products increasing purchasing power reduce relieve unemployment improve standards labor otherwise rehabilitate industry conserve natural resources stat cf schechter page page currin wallace hanna law cooperative marketing associations pp house report sess senate report sess costanzo tillinghast chicago north shore article vi section