1. Under the Agricultural Marketing Agreement Act of 1937, the
Secretary of Agriculture promulgated an order regulating the
marketing of milk in the Greater Boston area. The order provided
for fixing minimum prices to be paid to producers, and the
prescribed formula authorized a deduction for certain payments to
cooperatives. Producers, claiming that the Secretary, by the
provisions for payments to cooperatives, was unlawfully diverting
funds which belonged to producers, brought suit in the federal
district court to enjoin the Secretary from carrying out the
challenged provisions of the order.
Held, that the
producers had standing to sue. Pp.
321 U. S. 289,
321 U. S.
305.
2. Although a judicial examination of the validity of the
Secretary's action is not specifically authorized by the Act,
authority therefor is found in the existence of courts and the
intent of Congress as deduced from the statutes and precedents. P.
321 U. S.
307.
3. Under Article III of the Constitution, Congress established
courts to adjudicate cases and controversies as to claims of
infringement of individual rights, whether by unlawful action of
private persons or by the exertion of unauthorized administrative
power. P.
321 U. S.
310.
4. Whether the allegations of the complaint are sustainable is
not considered; the Court determines only that the complainants are
entitled to a judicial examination thereof. P.
321 U. S.
311.
136 F.2d 786 reversed.
Certiorari, 320 U.S. 723, to review the affirmance of a judgment
dismissing the complaint in a suit to enjoin the Secretary of
Agriculture from carrying out provisions of an order under the
Agricultural Marketing Agreement Act of 1937.
Page 321 U. S. 289
MR. JUSTICE REED delivered the opinion of the Court.
This class action was instituted in the United States District
Court for the District of Columbia to procure an injunction
prohibiting the respondent Secretary of Agriculture from carrying
out certain provisions of his Order No. 4, effective August 1,
1941, dealing with the marketing of milk in the Greater Boston,
Massachusetts, area.
See Agricultural Marketing Agreement
Act of 1937, 50 Stat. 246, 7 U.S.C. § 601
et seq.,
and Order 4, United States Department of Agriculture, Surplus
Marketing Administration, Title 7, Code of Federal Regulations,
Part 904. The district court dismissed the suit for failure to
state a claim upon which relief can be granted, and its judgment
was affirmed by the Court of Appeals for the District of Columbia,
136 F.2d 786. The respondent War Food Administrator was joined in
this court upon a showing that he had been given powers concurrent
with those of the Secretary.
See Executive Order No. 9334,
filed April 23, 1943, 8 F.R. 5423, 5425. We granted certiorari
because of the importance of the question to the administration of
this Act. 320 U.S. 723.
The petitioners are producers of milk, who assert that, by
§§ 904.7(b)(5) and 904.9 of his Order, the Secretary is
unlawfully diverting funds that belong to them. The courts below
dismissed the action on the ground that the Act vests no legal
cause of action in milk producers, and, since the decision below
and the argument here were limited
Page 321 U. S. 290
to that point, we shall confine our consideration to it.
The district court for the District of Columbia has a general
equity jurisdiction authorizing it to hear the suit, [
Footnote 1] but, in order to recover, the
petitioners must go further and show that the act of the Secretary
amounts to an interference with some legal right of theirs.
[
Footnote 2] If so, the
familiar principle that executive officers may be restrained from
threatened wrongs in the ordinary courts in the absence of some
exclusive alternative remedy will enable the petitioners to
maintain their suit; but if the complaint does not rest upon a
claim of which courts take cognizance, then it was properly
dismissed. The petitioners place their reliance upon such rights as
may be expressly or impliedly created by the Agricultural Marketing
Agreement Act of 1937 and the Order issued thereunder.
Although this Court has previously reviewed the provisions of
that statute at length and upheld its constitutionality, [
Footnote 3] some further reference to
it is necessary to an understanding of the producer's interest in
the funds dealt with by the Order. [
Footnote 4]
Page 321 U. S. 291
The immediate object of the Act is to fix minimum prices for the
sale of milk by producers to handlers. It does not forbid sales at
prices above the minimum. It contains
Page 321 U. S. 295
an appropriate declaration of policy, [
Footnote 5] and it provides that the Secretary of
Agriculture shall hold a hearing when he has reason to believe that
a marketing order would tend to effectuate the purposes of the Act.
[
Footnote 6] If he finds that
an order would be in accordance with the declared policy, he must
then issue it. [
Footnote 7]
Sections 8c(5) and 8c(7) enumerate the provisions that the order
may contain. Section 8c(5)(A) authorizes the Secretary to classify
milk in accordance with the form or purpose of its use, and to fix
minimum prices for each classification. These minima are the use
value of the milk. This method of fixing prices was adopted because
the economic value of milk depends upon the particular use made of
it. [
Footnote 8] It is apparent
that serious inequities as among producers might arise if the
prices each received depended upon the use the handler might happen
to make of his milk; accordingly, Section 8c(5)(B) authorizes
provision to be made for the payment to producers of a uniform
price [
Footnote 9] for the milk
delivered irrespective of the use to which the milk is put by the
individual handler. Section 8c(5)(C) authorizes the Secretary to
set up the necessary machinery to accomplish these purposes.
Page 321 U. S. 296
By Order No. 4, [
Footnote
10] the Secretary of Agriculture did fix minimum prices for
each class of milk, and required each
Page 321 U. S. 297
handler in the Boston area to pay not less than those minima to
producers, 7 C.F.R.1941 Supp., § 904.4, less
Page 321 U. S. 298
specified deductions. §§ 904.7(b), 904.8. In addition,
the order exercised the authority granted by the statute to
Page 321 U. S. 299
require the use of a weighted average in reaching the uniform
price to be paid producers, as described in the preceding
paragraph. §§ 904.7, 904.8.
Page 321 U. S. 300
Under the Order, the handler does not make final settlement with
the producer until the blended price [
Footnote 11] has been set, although he must make a part
payment on or before the tenth of each month. § 904.8. But,
within eight days after the end of each calendar month -- the
so-called "delivery period," § 904.1(9) -- the handler must
report his sales and deliveries, classified by use value, §
904,5, to a "market administrator." § 904.1(8). On the basis
of these reports, the administrator computes the blended price and
announces it on the twelfth day following the end of the delivery
period. § 904.7(b). On the twenty-fifth day, the handlers are
required to pay the balance due of the blended price so fixed to
the producers. § 904.8(b).
Were no administrative deductions necessary, the blended price
per hundredweight of milk could readily be determined by dividing
the total value of the milk used in the marketing area at the
minimum prices for each classification by the number of
hundredweight of raw milk used in the area. [
Footnote 12] However, the Order requires several
adjustments for purposes admittedly authorized by statute, so that
the determination of the blended price as actually made is drawn
from the total use value less a sum which the administrator is
direction to retain to meet various incidental adjustments.
[
Footnote 13] In practice,
each handler
Page 321 U. S. 301
discharges his obligation to the producers of whom he bought
milk by making two payments: one payment, the blended price, is
apportioned from the values at the minimum price for the respective
classes less administrative deductions, and is made to the producer
himself; [
Footnote 14] the
other payment is equal to these deductions and is made, in the
language of the Order, "to the producer, through the market
administrator," in order to enable the administrator to cover the
differentials and deductions in question. [
Footnote 15] It is the contention of the
petitioners that, by § 904.7(b)(6) [
Footnote 16] of the Order, the Secretary has directed
the administrator to deduct a sum for the purpose of meeting
payments to cooperatives as required by § 904.9, and that the
Act does not authorize the Secretary to include in his order
provision for payments of that kind or for deductions to meet them.
Apparently this deduction for payments to cooperatives is the only
deduction that is an unrecoverable charge against the producers.
The other items deducted under § 904.7(b) are for a revolving
fund or to meet differentials in price because of location,
seasonal delivery,
et cetera.
These producer petitioners allege that they have delivered milk
to handlers in the "Greater Boston," Massachusetts, marketing area
under the provisions of the Order. They state that they are not
members of a cooperative association entitled under the Order to
the contested payments and that, as producers, many of them voted
against the challenged amendment on the producers' referendum under
§§ 8c(9) and 8c(19) of the Act. These allegations
Page 321 U. S. 302
are admitted by the defense upon which dismissal was based --
namely, that the petition fails to state a claim upon which relief
could be granted. From the preceding summary of the theory and plan
of the statutory regulation of minimum prices for milk affecting
interstate commerce, it is clear that these petitioners have
exercised the right granted them by the statute and Order to
deliver their milk to "Greater Boston" handlers at the guaranteed
minimum prices fixed by the Secretary of Agriculture in the Order.
Sec. 904.4. Upon accepting that delivery, the handler was required
by the Order to pay to these producers their minimum prices in the
manner set forth in § 904.8. Simply stated, this section
required the handler to pay directly to the producer the blended
price as determined by the administrator, and to pay to the
producers through the administrator for use in meeting the
deductions authorized by the order of the Secretary and approved by
two-thirds of the producers, § 8c(9)(B), the difference
between the blended price and the minimum price. The Order directed
the administrator to deduct from the funds coming into his hands
from the producers' sale price the payments to cooperatives. §
904.9.
It is this deduction which the producers challenge as beyond the
Secretary's statutory power. The respondents answer that the
petitioners have not such a legal interest in this expenditure or
in the administrator's settlement fund as entitles them to
challenge the action of the Secretary in directing the
disbursement. The Government says that, as the producers pay
nothing into the settlement fund and receive nothing from it, they
have no legally protected right which gives them standing to sue.
There is, of course, no question but that the challenged deduction
reduces
pro tanto the amount actually received by the
producers for their milk.
By the statute and Order, the Secretary has required all area
handlers dealing in the milk of other producers to
Page 321 U. S. 303
pay minimum prices as just described. §§ 904.1(6),
904.4; Act, § 8c(14). The producer is not compelled by the
Order to deliver (Act § 8c(13)(B)), but neither can he be
required to market elsewhere, and, if he finds a dealer in the area
who will buy his product, the producer, by delivery of milk, comes
within the scope of the Act and the Order. The Order fixing the
minimum price obviously affects by direct Governmental action the
producer's business relations with handlers.
Columbia
Broadcasting System v. United States, 316 U.
S. 407,
316 U. S. 422.
Cf. Chicago Junction Case, 264 U.
S. 258,
264 U. S. 267.
The fact that the producer may sell to the handler for any price
above the minimum is not of moment in determining whether or not
the statute and Order secure to him a minimum price. Should the
producer sell his milk to a handler at prices in excess of the
minimum, the handler would nevertheless be compelled to pay into
the fund the same amount. The challenged deduction is a burden on
every area sale. §§ 904.7(a), 904.8(b). In substance,
petitioners' allegation is that, in effect, the Order directed
without statutory authority a deduction of a sum to pay the United
States a sales tax on milk sold. The statute and Order create a
right in the producer to avail himself of the protection of a
minimum price afforded by Governmental action. Such a right created
by statute is mandatory in character, and obviously capable of
judicial enforcement. [
Footnote
17] For example, the Order could not bar any qualified
producers in the milk shed from selling to area handlers. Like the
instances just cited
Page 321 U. S. 304
from railway labor cases,
supra, n 17, the petitioners here voluntarily bring
themselves within the coverage of the Act. It cannot be fairly said
that, because producers may choose not to sell in the area, those
who do choose to sell there necessarily must sell, without a right
of challenge, in accordance with unlawful requirements of
administrators. Upon purchase of his milk by a handler, the statute
endows the producer with other rights --
e.g., the right
to be paid a minimum price. Order, § 904.4.
The mere fact that Governmental action under legislation creates
an opportunity to receive a minimum price does not settle the
problem of whether or not the particular claim made here is
enforceable by the District Court. The deduction for cooperatives
may have detrimental effect on the price to producers and that
detriment be
damnum absque injuria. [
Footnote 18] It is only when a complainant
possesses something more than a general interest in the proper
execution of the laws that he is in a position to secure judicial
intervention. His interest must rise to the dignity of an interest
personal to him, and not possessed by the people generally.
[
Footnote 19] Such a claim
is of that character which constitutionally permits adjudication by
courts under their general powers. [
Footnote 20]
Page 321 U. S. 305
We deem it clear that, on the allegations of the complaint,
these producers have such a personal claim as justifies judicial
consideration. It is much more definite and personal than the right
of complainants to judicial consideration of their objections to
regulations, which this Court upheld in
Columbia Broadcasting
System v. United States, 316 U. S. 407. In
the present case, a reexamination of the preceding statement of
facts and summary of the statute and Order will show that
delivering producers are assured minimum prices for their milk.
§ 904.4. The Court directs the handler to pay that minimum as
follows:
A. By § 904.8(a), the handler is to make a preliminary part
payment of the blended price, and later, § 904.8(b)(1), the
handler makes the final payment to the producer of the blended
price computed as the Order directs. It is clear that the Order
compels the handler to pay not only the blended price, which is
always less than the uniform minimum price, but the entire minimum
price, because § 904.8(b) directs the handler's payment of the
entire minimum value as ascertained by § 904.7(a)(1) and (2).
The blended price is reached by subtracting, among other items, the
cooperative payment, here in question, from the minimum price.
§ 904.7(b)(5).
B. The balance of the minimum price, which the handler owes to
the producer, he must pay "to the producer, through the market
administrator" by payment into the settlement or equalization fund
two days ahead of the final date for payment of the blended price.
§ 904.8(b)(3). This balance of the minimum purchase price is
then partly used by the administrator to pay the cooperatives.
§ 904.9(b). The handler is simply a conduit from the
administrator who receives and distributes the minimum prices. The
situation would be substantially the same if an administrator
received as trustee for the producers the purchase price of their
milk, paid expenses incurred in the
Page 321 U. S. 306
operation, and paid the balance to the producers. Under such
circumstances, we think the producers have legal standing to object
to illegal provisions of the Order.
However, even where a complainant possesses a claim to executive
action beneficial to him, created by federal statute, it does not
necessarily follow that actions of administrative officials, deemed
by the owner of the right to place unlawful restrictions upon his
claim, are cognizable in appropriate federal courts of first
instance. When the claims created are against the United States, no
remedy through the courts need be provided.
United States v.
Babcock, 250 U. S. 328,
250 U. S. 331,
and cases cited;
Work v. Rives, 267 U.
S. 175,
267 U. S. 181;
Butte, A. & P. R. Co. v. United States, 290 U.
S. 127,
290 U. S.
142-143. To reach the dignity of a legal right in the
strict sense, it must appear from the nature and character of the
legislation that Congress intended to create a statutory privilege
protected by judicial remedies. Under the unusual circumstances of
the historical development of the Railway Labor Act, this Court has
recently held that an administrative agency's determination of a
controversy between unions of employees as to which is the proper
bargaining representative of certain employees is not justiciable
in federal courts.
General Committee v. M.-K.-T. R. Co.,
320 U. S. 323.
Under the same Act, it was held on the same date that the
determination by the Mediation Board of the participants in an
election for representatives for collective bargaining likewise was
not subject to judicial review.
Switchmen's Union v. Mediation
Board, 320 U. S. 297.
This result was reached because of this Court's view that
jurisdictional disputes between unions were left by Congress to
mediation, rather than adjudication. 320 U.S.
320 U. S. 302
and
320 U. S. 337.
That is to say, no personal right of employees, enforceable in the
courts, was created in the particular instances under
consideration. 320 U.S.
320 U. S. 337.
But, where rights of collective bargaining, created by the
Page 321 U. S. 307
same Railway Labor Act, contained definite prohibitions of
conduct or were mandatory in form, this Court enforced the rights
judicially. 320 U.S.
320 U. S.
330-331.
Cf. Texas & N.O. R. Co. v. Brotherhood
of Clerks, 281 U. S. 548;
Virginian R. Co. v. System Federation, 300 U.
S. 515.
It was pointed out in the
Switchmen's case that:
"If the absence of jurisdiction of the federal courts meant a
sacrifice or obliteration of a right which Congress had created,
the inference would be strong that Congress intended the statutory
provisions governing the general jurisdiction of those courts to
control."
320 U.S. at
320 U. S.
300.
The only opportunity these petitioners had to complain of the
contested deduction was to appear at hearings and to vote for or
against the proposed order. Act, § 8c(3), 8c(9) and 8c(19);
Order, preamble. So long as the provisions of the Order are within
the statutory authority of the Secretary, such hearings and
balloting furnish adequate opportunity for protest.
Morgan v.
United States, 298 U. S. 468,
298 U. S. 480.
But where, as here, the issue is statutory power to make the
deduction required by Order, § 904.9, under the authority of
§ 8c(7)(D) of the Act, a mere hearing or opportunity to vote
cannot protect minority producers against unlawful exactions which
might be voted upon them by majorities. It can hardly be said that
opportunity to be heard on matters within the Secretary's
discretion would foreclose an attack on the inclusion in the Order
of provisions entirely outside of the Secretary's delegated
powers.
Without considering whether or not Congress could create such a
definite personal statutory right in an individual against a fund
handled by a Federal agency, as we have here, and yet limit its
enforceability to administrative determination, despite the
existence of federal courts of general jurisdiction established
under Article III of the Constitution, the Congressional grant of
jurisdiction of this proceeding appears plain. There is no
Page 321 U. S. 308
direct judicial review granted by this statute for these
proceedings. The authority for a judicial examination of the
validity of the Secretary's action is found in the existence of
courts and the intent of Congress as deduced from the statutes and
precedents as hereinafter considered.
The Act bears on its face the intent to submit many questions
arising under its administration to judicial review. §§
8a(6), 8c(15)(A) and (B). It specifically states that the remedies
specifically provided in § 8a are to be in addition to any
remedies now existing at law or equity. § 8a(8). This Court
has heretofore construed the Act to grant handlers judicial relief
in addition to the statutory review specifically provided by §
8c(15). On complaint by the United States, the handler was
permitted by way of defense to raise issues of a want of statutory
authority to impose provisions on handlers which directly affect
such handlers.
United States v. Rock Royal Co-op.,
307 U. S. 533,
307 U. S.
560-561. In the
Rock Royal case, the Government
had contended that the handlers had no legal standing in the suit
for enforcement to attack provisions of the order relating to
handlers. While we upheld the contention of the Government as to
the lack of standing of handlers to object to the operation of the
producer settlement fund on the ground that the handlers had no
"financial interest" in that fund, we recognized the standing of a
proprietary handler to question the alleged discrimination shown in
favor of the cooperative handlers. The producer settlement fund is
created to meet allowable deductions by the payment of a part of
the minimum price to producers through the market administrator.
See note 15
supra. Rock Royal pointed out that handlers were
without standing to question the use of the fund, because handlers
had no financial interest in the fund or its use. It is because
every dollar of deduction comes from the producer that he may
challenge the use of the fund. The petitioners' complaint is
not
Page 321 U. S. 309
that their blended price is too low, but that the blended price
has been reduced by a misapplication of money deducted from the
producers' minimum price.
With this recognition by Congress of the applicability of
judicial review in this field, it is not to be lightly assumed that
the silence of the statute bars from the courts an otherwise
justiciable issue,
United States v. Griffin, 303 U.
S. 226,
303 U. S. 238;
Shields v. Utah Idaho R. Co., 305 U.
S. 177,
305 U. S. 182;
cf. A.F. of L. v. Labor Board, 308 U.
S. 401,
308 U. S. 404,
308 U. S. 412.
The ruling in
Texas & Pac. R. v. Abilene Cotton Oil
Co., 204 U. S. 426, is
not authority to the contrary. It was there held that the statute
placed the power in the Interstate Commerce Commission to hear the
complaint stated, not in the state court where it was brought. The
Commission award was then to be enforced in court. P.
204 U. S. 438.
Here, there is no forum, other than the ordinary courts, to hear
this complaint. When, as we have previously concluded in this
opinion, definite personal rights are created by federal statute,
similar in kind to those customarily treated in courts of law,
[
Footnote 21] the silence of
Congress as to judicial review is, at any rate in the absence of an
administrative remedy, not to be construed as a denial of authority
to the aggrieved person to seek appropriate relief in the federal
courts in the exercise of their general jurisdiction. When Congress
passes an Act empowering administrative agencies to carry on
governmental activities, the power of those agencies is
circumscribed by the authority granted. [
Footnote 22] This permits the
Page 321 U. S. 310
courts to participate in law enforcement entrusted to
administrative bodies only to the extent necessary to protect
justiciable individual rights against administrative action fairly
beyond the granted powers. The responsibility of determining the
limits of statutory grants of authority in such instances is a
judicial function entrusted to the courts by Congress by the
statutes establishing courts and marking their jurisdiction.
Cf. United States v. Morgan, 307 U.
S. 183,
307 U. S.
190-191. This is very far from assuming that the courts
are charged more than administrators or legislators with the
protection of the rights of the people. Congress and the Executive
supervise the acts of administrative agents. The powers of
departments, boards and administrative agencies are subject to
expansion, contraction, or abolition at the will of the legislative
and executive branches of the government. These branches have the
resources and personnel to examine into the working of the various
establishments to determine the necessary changes of function or
management. But, under Article III, Congress established courts to
adjudicate cases and controversies as to claims of infringement of
individual rights whether by unlawful action of private persons or
by the exertion of unauthorized administrative power.
It is suggested that such a ruling puts the agency at the mercy
of objectors, since any provisions of the Order may be attacked as
unauthorized by each producer. To this objection there are adequate
answers. The terms of the Order are largely matters of
administrative discretion as to which there is no justiciable right
or are clearly authorized by a valid act.
United States v. Rock
Royal Co-op., 307 U. S. 533.
Technical details of the milk business are left to the Secretary
and his aides. The expenses of litigation deter frivolous
contentions. If numerous parallel cases are filed, the courts have
ample authority to stay useless litigation until the determination
of a test case.
Cf. Landis v. North American Co.,
299 U. S. 248.
Should
Page 321 U. S. 311
some provisions of an order be held to exceed the statutory
power of the Secretary, it is well within the power of a court of
equity to so mold a decree as to preserve in the public interest
the operation of the portion of the order which is not attacked
pending amendment.
It hardly need be added that we have not considered the
soundness of the allegations made by the petitioners in their
complaint. The trial court is free to consider whether the
statutory authority given the Secretary is a valid answer to the
petitioners' contention. We merely determine the petitioners have
shown a right to a judicial examination of their complaint.
Reversed.
MR. JUSTICE BLACK is of the view that the judgment should be
affirmed for the reasons given in the opinion of the United States
Court of Appeals for the District of Columbia.
MR. JUSTICE JACKSON took no part in the consideration or
decision of this case.
[
Footnote 1]
See 18 D.C.Code § 41, as amended, 49 Stat. 1921.
The District of Columbia court may also exercise the same
jurisdiction of United States district courts generally, 18
D.C.Code § 43, which have jurisdiction under the Judicial Code
over cases arising under acts regulating interstate commerce.
Judicial Code, § 24(8), 28 U.S.C. § 41(8);
Mulford v.
Smith, 307 U. S. 38;
Turner, Dennis & Lowry Lumber Co. v. Chicago, M. & St.
P. R., 271 U. S. 259;
Robertson v. Argus Hosiery Mills, 121 F.2d 285.
[
Footnote 2]
See Tennessee Electric Power Co. v. TVA, 306 U.
S. 118,
306 U. S.
137-138.
[
Footnote 3]
See United States v. Rock Royal Coop., 307 U.
S. 533;
H. P. Hood & Sons v. United States,
307 U. S. 588.
[
Footnote 4]
The following clauses of the Act are necessary to a
consideration of this case:
"SEC. 2. It is hereby declared to be the policy of Congress
--"
"(1) Through the exercise of the powers conferred upon the
Secretary of Agriculture under this title, to establish and
maintain such orderly marketing conditions for agricultural
commodities in interstate commerce as will establish prices to
farmers at a level that will give agricultural commodities a
purchasing power with respect to articles that farmers buy,
equivalent to the purchasing power of agricultural commodities in
the base period; and, in the case of all commodities for which the
base period is the prewar period, August, 1909, to July, 1914, will
also reflect current interest payments per acre on farm
indebtedness secured by real estate and tax payments per acre on
farm real estate, as contrasted with such interest payments and tax
payments during the base period. The base period in the case of all
agricultural commodities except tobacco and potatoes shall be the
prewar period, August, 1909-July, 1914. In the case of tobacco and
potatoes, the base period shall be the postwar period, August,
1919-July, 1929."
"(2) To protect the interest of the consumer by (a) approaching
the level of prices which it is declared to be the policy of
Congress to establish in subsection (1) of this section by gradual
correction of the current level at as rapid a rate as the Secretary
of Agriculture deems to be in the public interest and feasible in
view of the current consumptive demand in domestic and foreign
markets, and (b) authorizing no action under this title which has
for its purpose the maintenance of prices to farmers above the
level which it is declared to be the policy of Congress to
establish in subsection (1) of this section."
"SEC. 8a(5) Any person willfully exceeding any quota or
allotment fixed for him under this title by the Secretary of
Agriculture, and any other person knowingly participating, or
aiding, in the exceeding of said quota or allotment, shall forfeit
to the United States a sum equal to three times the current market
value of such excess, which forfeiture shall be recoverable in a
civil suit brought in the name of the United States."
"(6) The several district courts of the United States are hereby
vested with jurisdiction specifically to enforce, and to prevent
and restrain any person from violating any order, regulation, or
agreement, heretofore or hereafter made or issued pursuant to this
title, in any proceeding now pending or hereafter brought in said
courts."
"(7) Upon the request of the Secretary of Agriculture, it shall
be the duty of the several district attorneys of the United States,
in their respective districts, under the directions of the Attorney
General, to institute proceedings to enforce the remedies and to
collect the forfeitures provided for in, or pursuant to, this
title. Whenever the Secretary, or such officer or employee of the
Department of Agriculture as he may designate for the purpose, has
reason to believe that any handler has violated, or is violating,
the provisions of any order or amendment thereto issued pursuant to
this title, the Secretary shall have power to institute an
investigation and, after due notice to such handler, to conduct a
hearing in order to determine the facts for the purpose of
referring the matter to the Attorney General for appropriate
action."
"(8) The remedies provided for in this section shall be in
addition to, and not exclusive of, any of the remedies or penalties
provided for elsewhere in this title or now or hereafter existing
at law or in equity."
"(9) The term 'person' as used in this title includes an
individual, partnership, corporation, association, and any other
business unit."
"SEC. 8c(3) Whenever the Secretary of Agriculture has reason to
believe that the issuance of an order will tend to effectuate the
declared policy of this title with respect to any commodity or
product thereof specified in subsection (2) of this section, he
shall give due notice of and an opportunity for a hearing upon a
proposed order."
"(4) After such notice and opportunity for hearing, the
Secretary of Agriculture shall issue an order if he finds, and sets
forth in such order, upon the evidence introduced at such hearing
(in addition to such other findings as may be specifically required
by this section) that the issuance of such order and all of the
terms and conditions thereof will tend to effectuate the declared
policy of this title with respect to such commodity."
"(5) In the case of milk and its products, orders issued
pursuant to this section shall contain one or more of the following
terms and conditions, and (except as provided in subsection (7)) no
others:"
"(A) Classifying milk in accordance with the form in which or
the purpose for which it is used, and fixing, or providing a method
for fixing, minimum prices for each such use classification which
all handlers shall pay, and the time when payments shall be made,
for milk purchased from producers or associations of producers.
Such prices shall be uniform as to all handlers, subject only to
adjustments for (1) volume, market, and production differentials
customarily applied by the handlers subject to such order, (2) the
grade or quality of the milk purchased, and (3) the locations at
which delivery of such milk, or any use classification thereof, is
made to such handlers."
"(B) Providing:"
"(i) for the payment to all producers and associations of
producers delivering milk to the same handler of uniform prices for
all milk delivered by them: Provided, That, except in the case of
orders covering milk products only, such provision is approved or
favored by at least three-fourths of the producers who, during a
representative period determined by the Secretary of Agriculture,
have been engaged in the production for market of milk covered in
such order or by producers who, during such representative period,
have produced at least three-fourths of the volume of such milk
produced for market during such period; the approval required
hereunder shall be separate and apart from any other approval or
disapproval provided for by this section; or"
"(ii) for the payment to all producers and associations of
producers delivering milk to all handlers of uniform prices for all
milk so delivered, irrespective of the uses made of such milk by
the individual handler to whom it is delivered; subject, in either
case, only to adjustments for (a) volume, market, and production
differentials customarily applied by the handlers subject to such
order, (b) the grade or quality of the milk delivered, (c) the
locations at which delivery of such milk is made, and (d) a further
adjustment, equitably to apportion the total value of the milk
purchased by any handler, or by all handlers, among producers and
associations of producers, on the basis of their marketings of milk
during a representative period of time."
"(C) In order to accomplish the purposes set forth in paragraphs
(A) and (B) of this subsection (5), providing a method for making
adjustments in payments, as among handlers (including producers who
are also handlers), to the end that the total sums paid by each
handler shall equal the value of the milk purchased by him at the
prices fixed in accordance with paragraph (A) hereof."
"
* * * *"
Among the provisions of subsection (7), referred to in Section
8c(5), is authorization for terms described as follows:
"SEC. 8c(7)(D) Incidental to, and not inconsistent with, the
terms and conditions specified in subsections (5), (6), and (7) and
necessary to effectuate the other provisions of such order."
Sections 8c(8) and 8c(9) provide, with exceptions not here
relevant, that a marketing order must have the approval of the
handlers of at least 50% of the volume of the commodity subject to
the order unless the Secretary, with the approval of the President,
determines that the proposed order is necessary to effectuate the
declared policy of the Act and "is the only practical means of
advancing the interests of the producers of such commodity pursuant
to the declared policy. . . ." Section 8c(9)(B). Whether the
handlers agree or not, an order must be found to be "approved or
favored" either by two-thirds of the producers in number or by
volume of the commodity produced. Section 8c(19) authorizes the
Secretary to hold a referendum to determine whether producers
approve.
"SEC. 8c(13)(B) No other issued under this title shall be
applicable to any producer in his capacity as a producer."
"SEC. 8c(14) Any handler subject to an order issued under this
section, or any officer, director, agent, or employee of such
handler, who violates any provision of such order (other than a
provision calling for payment of a
pro rata share of
expenses) shall, on conviction, be fined not less than $50 or more
than $500 for each such violation, and each day during which such
violation continues shall be deemed a separate violation: Provided,
That if the court finds that a petition pursuant to subsection (15)
of this section was filed and prosecuted by the defendant in good
faith and not for delay, no penalty shall be imposed under this
subsection for such violations as occurred between the date upon
which the defendant's petition was filed with the Secretary and the
date upon which notice of the Secretary's ruling thereon was given
to the defendant in accordance with regulations prescribed pursuant
to subsection (15)."
"SEC. 8c(15)(A) Any handler subject to an order may file a
written petition with the Secretary of Agriculture, stating that
any such order or any provision of any such order or any obligation
imposed in connection therewith is not in accordance with law and
praying for a modification thereof or to be exempted therefrom. He
shall thereupon be given an opportunity for a hearing upon such
petition, in accordance with regulations made by the Secretary of
Agriculture, with the approval of the President. After such
hearing, the Secretary shall make a ruling upon the prayer of such
petition which shall be final, if in accordance with law."
"(B) The District Courts of the United States (including the
Supreme Court of the District of Columbia) in any district in which
such handler is an inhabitant, or has his principal place of
business, are hereby vested with jurisdiction in equity to review
such ruling, provided a bill in equity for that purpose is filed
within twenty days from the date of the entry of such ruling.
Service of process in such proceedings may be had upon the
Secretary by delivering to him a copy of the bill of complaint. If
the court determines that such ruling is not in accordance with
law, it shall remand such proceedings to the Secretary with
directions either (1) to make such ruling as the court shall
determine to be in accordance with law, or (2) to take such further
proceedings as, in its opinion, the law requires. The pendency of
proceedings instituted pursuant to this subsection (15) shall not
impede, hinder, or delay the United States or the Secretary of
Agriculture from obtaining relief pursuant to section 8a(6) of this
title. Any proceedings brought pursuant to section 8a(6) of this
title (except where brought by way of counterclaim in proceedings
instituted pursuant to this subsection (15)) shall abate whenever a
final decree has been rendered in proceedings between the same
parties, and covering the same subject matter, instituted pursuant
to this subsection (15)."
[
Footnote 5]
Section 2,
n 4,
supra.
[
Footnote 6]
Section 8c(3),
n 4,
supra.
[
Footnote 7]
Section 8c(4),
n 4,
supra.
[
Footnote 8]
See United States v. Rock Royal Coop., 307 U.
S. 533,
307 U. S.
549-550.
[
Footnote 9]
"Uniform price" means weighted average of minimum prices.
[
Footnote 10]
The preamble to the order recites the holding of hearings and
compliance with Section 8c(9) of the Act. Section 904.0 of the
Order contains the Secretary's findings, and Section 904.1 the
definitions of terms.
"SEC. 904.1(6) The term 'handler' means any person, irrespective
of whether such person is a producer or an association of
producers, wherever located or operating, who engages in such
handling of milk, which is sold as milk or cream in the marketing
area, as is in the current of interstate or foreign commerce, or
which directly burdens, obstructs, or affects interstate or foreign
commerce in milk and its products."
Section 904.2 enumerates the duties of the market administrator.
Section 904.3 classifies milk into Class I milk and Class II milk
according to its utilization. Generally speaking, Class I milk is
that which is utilized for sale as milk containing from 1/2 to 1%
to 16% butterfat or as chocolate or flavored milk, while Class II
includes all other uses.
Section 904.4 provides:
"SEC. 904.4 MINIMUM PRICES. (a)
Class I prices to
producers. Each handler shall pay producers, in the manner set
forth in Sec. 904.8, for Class I milk delivered by them, not less
than the following prices:"
"
* * * *"
"(b)
Class II prices. Each handler shall pay producers,
in the manner set forth in Sec. 904.8, for Class II milk delivered
by them not less than the following prices per hundred weight. . .
."
Section 904.5 provides for necessary informational reports by
handlers, and Section 904.6 deals with the application of the Order
to exceptional types of handlers. Section 904.7, dealing with
computation of the weighted average, read in its applicable
portions as of July 28, 1941, as follows:
"SEC. 904.7 DETERMINATION OF UNIFORM PRICES TO PRODUCERS. (a)
Computation of value of milk for each handler. For each
delivery period, the market administrator shall compute . . . the
value of milk sold, distributed, or used by each handler . . . in
the following manner:"
"(1) Multiply the quantity of milk in each class by the price
applicable pursuant to paragraphs (a), (b), and (c), of Sec. 904.4;
and"
"(2) Add together the resulting value of each class."
"(b)
Computation and announcement of uniform prices.
The market administrator shall compute and announce the uniform
prices per hundredweight of milk delivered during each delivery
period in the following manner:"
"(1) Combine into one total the respective value of milk,
computed pursuant to paragraph (a) of this section, for each
handler from whom the market administrator has received at his
office, prior to the 11th day after the end of such delivery
period, the report for such delivery period and the payments
required by Sec. 904.8(b)(3) and (g) and (h) for milk received
during each delivery period since the effective date of the most
recent amendment hereof;"
"
* * * *"
"(4) Subtract the total amount to be paid to producers pursuant
to Sec. 904.8(b)(2);"
"(5) Subtract the total of payments required to be made for such
delivery period pursuant to Sec. 904.9(b);"
"(6) Divide by the total quantity of milk which is included in
these computations. . . ."
"(7) Subtract not less than 4 cents nor more than 5 cents for
the purpose of retaining a cash balance in connection with the
payments set forth in Sec. 904.8(b)(3);"
"
* * * *"
"(9) On the 12th day after the end of each delivery period, mail
to all handlers and publicly announce(a) such of these computations
as do not disclose information confidential pursuant to the act,
(b) the blended price per hundredweight which is the result of
these computations, (c) the names of the handlers whose milk is
included in the computations, and (d) the Class II price."
As of October 28, 1941, Subsection (5) was revoked and the
subsections following it were renumbered, and the deduction
theretofore required by it was effected by amending Subsection (7)
(new Subsection (6)) to read as follows:
"(6) Subtract not less than 5 1/2 cents nor more than 6 1/2
cents for the purpose of retaining a cash balance in connection
with the payments set forth in §§ 904.8(b)(3) and
909.9(b);"
See n 16,
infra.
Section 904.8(a) and (b), dealing with the method of making
payment, reads:
"SEC. 904.8 PAYMENTS FOR MILK. (a)
Advance payments. On
or before the 10th day after the end of each delivery period, each
handler shall make payment to producers for the approximate value
of milk received during the first 15 days of such delivery period.
In no event shall such advance payment be at a rate less than Class
II price for such delivery."
"(b)
Final payments. On or before the 25th day after
the end of each delivery period, each handler shall make payment,
subject to the butterfat differential set forth in paragraph (d) of
this section, for the total value of milk received during such
delivery period as required to be computed pursuant to Sec.
904.7(a), as follows:"
"(1) To each producer, except as set forth in subparagraph (2)
of this paragraph at not less than the blended price per
hundredweight, computed pursuant to Sec. 904.7(b), subject to the
differentials set forth in paragraph (e) of this section, for the
quantity of milk delivered by such producer;"
"(2) To any producer, who did not regularly sell milk for a
period of 30 days prior to February 9, 1936, to a handler or to
persons within the marketing area at not less than the Class II
price in effect for the plant at which such producer delivered
milk, except that, during the May, June, and September delivery
periods, the price pursuant to Sec. 904.4(b)(3) shall apply, for
all the milk delivered by such producer during the period beginning
with the first regular delivery of such producer and continuing
until the end of 2 full calendar months following the first day of
the next succeeding calendar month; and"
"(3) To producers, through the market administrator, by paying
to, on or before the 23rd day after the end of each delivery
period, or receiving from the market administrator on or before the
25th day after the end of each delivery period, as the case may be,
the amount by which the payments required to be made pursuant to
subparagraphs (1) and (2) of this paragraph are less than or exceed
the value of milk as required to be computed for such handler
pursuant to Sec. 904.7(a), as shown in a statement rendered by the
market administrator on or before the 20th day after the end of
such delivery period."
Other clauses of Section 904.8 deal with price differentials not
here pertinent.
Section 904.9 authorizes the payments to cooperatives which are
questioned here. Eligibility requirements are set out in §
904.9(a), which then provides:
"(1) Any such cooperative association shall receive an amount
computed at not more than the rate of 1 1/2 cents per hundredweight
of milk marketed by it on behalf of its members in conformity with
the provision of this order, the value of which is determined
pursuant to Sec. 904.7(a), and with respect to which a handler has
made payments as required by Sec. 904.8(b)(3) and Sec. 904.10:
Provided, That the amount paid shall not exceed the amount which
handlers are obligated to deduct from payments to members under
subsection (e) hereof and are not used in paying patronage
dividends or other payments to members with respect to milk
delivered except in fulfilling the guarantee of payments to
producers, and that in cases where two or more associations
participate in the marketing of the same milk, payment under this
paragraph shall be available only to the association which the
individual producer has made his exclusive agent in the marketing
of such milk."
"(2) Any such cooperative association shall receive an amount
computed at the rate of 5 cents per hundredweight on Class I milk
received from producers at a plant operated under the exclusive
control of member producers, which is sold to proprietary handlers.
This amount shall not be received on milk sold to stores, to
handlers, in which the cooperative has any ownership, or to a
handler with which the cooperative has such sales arrangements that
its milk not sold as Class I milk to such handler is not available
for sale as Class I milk to other handlers."
Section 904.9(b) contains the direction for payment out of the
cash balance created by § 904.7(b)(6), as amended,
supra.
Section 904.9:
"(b) PAYMENT TO QUALIFIED COOPERATIVE ASSOCIATIONS. The market
administrator shall, upon claim submitted in form as prescribed by
him, make payments authorized under paragraph (a), or issue credit
therefor out of the cash balance credited pursuant to Sec.
904.7(b)(5), on or before the 25th day after the end of each
delivery period, subject to verification of the receipts and other
items on which the amount of such payment is based."
The deductions from payments by handlers to cooperative member
producers, referred to in Section 904.9(a)(1), quoted
supra, are authorized by § 904.9(e), as follows:
"(e)
Authorized member deductions. In the case of
producers whose milk is received at a plant not operated by a
cooperative association of which such producers are members and
which is receiving payments pursuant to this section, each handler
shall make such deductions from the payments to be made to such
producers pursuant to Sec. 904.8 as may be authorized by such
producers and, on or before the 25th day after the end of each
delivery period, pay over such deductions to the association in
whose favor such authorizations were made."
Section 904.10 requires each handler to pay to the market
administrator not more than 2 cents per hundredweight of milk
delivered to him in order to meet costs of administration. Section
904.11 covers the effective time, suspension, or termination of the
order.
[
Footnote 11]
"Blended price" means the uniform price less administrative
deductions.
[
Footnote 12]
Cf. 7 C.F.R.1941 Supp. § 904.7(a).
[
Footnote 13]
See 7 C.F.R.1941 Supp. § 904.7(b).
[
Footnote 14]
7 C.F.R.1941 Supp. §§ 904.7(b), 904.8(b)(1).
[
Footnote 15]
7 C.F.R.1941 Supp. § 904.8(b)(3). The operations of the
settlement fund are described in
United States v. Rock Royal
Co-op., 307 U. S. 533,
307 U. S.
571.
[
Footnote 16]
This section has superseded § 904.7(b)(5) in effect at the
time this suit was brought with reference to the deduction in
issue. 6 F.R. 5482, effective October 28, 1941.
See
n 10,
supra.
[
Footnote 17]
Texas & N.O. R. Co. v. Brotherhood of Clerks,
281 U. S. 548,
281 U. S. 568;
Virginian R. Co. v. System Federation, 300 U.
S. 515,
300 U. S. 545.
General Committee v. M.-K.-T. R. Co., 320 U.
S. 323, and
Switchmen's Union v. Mediation
Board, 320 U. S. 297, do
not look in the contrary direction. Both assume claims created by
statute in the petitioners and deny a judicial remedy to those
claims on the ground that "Congress . . . has foreclosed resort to
the courts for enforcement of the claims asserted by the parties."
320 U.S.
320 U. S. 300
and
320 U. S.
327.
[
Footnote 18]
United States v. Illinois Central R. Co., 244 U. S.
82,
244 U. S. 87;
United States v. Los Angeles & S.L. R. Co.,
273 U. S. 299,
273 U. S.
314-315;
Alabama Power Co. v. Ickes,
302 U. S. 464,
302 U. S. 478;
Tennessee Power Co. v. TVA, 306 U.
S. 118,
306 U. S. 135;
Perkins v. Lukens Steel Co., 310 U.
S. 113,
310 U. S. 125;
Singer & Sons v. Union Pacific R. Co., 311 U.
S. 295,
311 U. S.
303.
[
Footnote 19]
This distinction has long been recognized. Chief Justice
Marshall phrased it in vivid language as early as
Marbury v.
Madison, 1 Cranch 137,
5 U. S. 165-166,
a fragment only of which follows:
"But where a specific duty is assigned by law, and individual
rights depend upon the performance of that duty, it seems equally
clear that the individual who considers himself injured has a right
to resort to the laws of his country for a remedy."
Perkins v. Lukens Steel Co., 310 U.
S. 113,
310 U. S. 125;
Massachusetts v. Mellon, 262 U. S. 447,
262 U. S.
488.
[
Footnote 20]
Philadelphia Co. v. Stimson, 223 U.
S. 605,
223 U. S. 619;
American School of Magnetic Healing v. McAnnulty,
187 U. S. 94,
187 U. S.
110.
[
Footnote 21]
Tennessee Power Co. v. TVA, 306 U.
S. 118,
306 U. S.
137.
[
Footnote 22]
Marbury v.
Madison, 1 Cranch 137,
5 U. S. 165;
American School of Magnetic Healing v. McAnnulty,
187 U. S. 94,
187 U. S.
109-110;
Interstate Commerce Comm'n v. Union Pacific
R. Co., 222 U. S. 541,
222 U. S. 547;
International R. Co. v. Davidson, 257 U.
S. 506,
257 U. S. 514;
Morgan v. United States, 298 U. S. 468,
298 U. S. 479;
United States v. Carolina Freight Carriers Corp.,
315 U. S. 475,
315 U. S. 489;
Commissioner v. Gooch Milling & Elevator Co.,
320 U. S. 418.
MR. JUSTICE FRANKFURTER, dissenting.
The immediate issue before us is whether these plaintiffs, milk
producers, can in the circumstances of this case go to court to
complain of an order by the Secretary of Agriculture fixing rates
for the distribution of milk within the Greater Boston marketing
area. The solution of that question depends, however, upon a proper
approach toward such a scheme of legislation as that formulated by
Congress in the Agricultural Marketing Agreement Act of 1937.
Apart from legislation touching the revenue, the public domain,
national banks and patents, not until the Interstate Commerce Act
of 1887 did Congress begin to place economic enterprise under
systems of administrative control. These regulatory schemes have
varied in the range
Page 321 U. S. 312
of control exercised by government; they have varied no less in
the procedures by which the control was exercised. More
particularly, these regimes of national authority over private
enterprise reveal great diversity in the allotment of power by
Congress as between courts and administrative agencies. Congress
has not made uniform provisions in defining who may go to court,
for what grievance, and under what circumstances, in seeking relief
from administrative determinations. Quite the contrary. In the
successive enactments by which Congress has established
administrative agencies as major instruments of regulation, there
is the greatest contrariety in the extent to which, and the
procedures by which, different measures of control afford judicial
review of administrative action.
Except in those rare instances, as in a claim of citizenship in
deportation proceedings, when a judicial trial becomes a
constitutional requirement because of "[t]he difference of security
of judicial over administrative action,"
Ng Fung Ho. v.
White, 259 U. S. 276,
259 U. S. 285,
whether judicial review is available at all, and, if so, who may
invoke it, under what circumstances, in what manner, and to what
end, are questions that depend for their answer upon the particular
enactment under which judicial review is claimed. Recognition of
the claim turns on the provisions dealing with judicial review in a
particular statute and on the setting of such provisions in that
statute as part of a scheme for accomplishing the purposes
expressed by that statute. Apart from the text and texture of a
particular law in relation to which judicial review is sought,
"judicial review" is a mischievous abstraction. There is no such
thing as a common law of judicial review in the federal courts. The
procedural provisions in more than a score of these regulatory
measures prove that the manner in which Congress has distributed
responsibility for the enforcement of its laws between courts and
administrative agencies runs a gamut all the way from authorizing
a
Page 321 U. S. 313
judicial trial
de novo of a claim determined by the
administrative agency to denying all judicial review and making
administrative action definitive.
Congress has not only devised different schemes of enforcement
for different Acts. It has from time to time modified and
restricted the scope of review under the same Act.
Compare
§ 16 of the Act to Regulate Commerce, February 4, 1887, c.
104, 24 Stat. 379, 384, 385,
with § 13 of the
Commerce Court Act, June 18, 1910, c. 309, 36 Stat. 539, 554, 555,
and 49 U.S.C. § 16(12), and the latter with enforcement of
reparation orders, 49 U.S.C. § 16(2). Moreover the same
statute, as is true of the Interstate Commerce Act, may make some
orders not judicially reviewable for any purpose,
see e.g.,
United States v. Los Angeles & S.L. R. Co., 273 U.
S. 299, or reviewable by some who are adversely affected
and not by others,
e.g., Singer & Sons v. Union Pacific R.
Co., 311 U. S. 295,
311 U. S.
305-308. The oldest scheme of administrative control --
our customs revenue legislation -- shows in its evolution all sorts
of permutations and combinations in using available administrative
and judicial remedies.
See, for instance, 35 U.
S. Swartwout, 10 Pet. 137;
Cary v.
Curtis, 3 How. 236;
Murray's
Lessee v. Hoboken Land & Improvement Co., 18
How. 272;
Hilton v. Merritt, 110 U. S.
97; for a general survey,
see Freund,
Administrative Powers over Persons and Property, §§
260-62. And only the other day, we found the implications of the
Railway Labor Act, c. 347, 44 Stat. (part 2) 577, as amended, c.
691, 48 Stat. 1185, 45 U.S.C. § 151
et seq., to be
such that courts could not even exercise the function of keeping
the National Mediation Board within its statutory authority.
Switchmen's Union v. Mediation Board, 320 U.
S. 297. Were this list of illustrations extended and the
various regulatory schemes thrown into a hotchpot, the result would
be hopeless discord. And to do so would be to treat these
legislative schemes as though they were part of a single body of
law, instead of each being a self-contained scheme.
Page 321 U. S. 314
The divers roles played by judicial review in the administration
of regulatory measures other than the Agricultural Marketing Act
cannot tell us when and for whom judicial review of administrative
action can be had under that Act. The fact that certain classes of
individuals adversely affected by a ruling of the Interstate
Commerce Commission can, and other classes cannot, obtain redress
in court does not tell us what classes may, and what classes may
not, obtain judicial redress for action by the Secretary of
Agriculture which affects these respective classes adversely. And
to cite the
Switchmen's case,
supra, in support
of this case is to treat our decisions too lightly. In the numerous
cases either granting or denying judicial review, grant or denial
were reached not by applying some "natural law" of judicial review
nor on the basis of some general body of doctrines for construing
the diverse provisions of the great variety of federal regulatory
statutes. Judicial review, when recognized -- its scope and its
incidence -- was derived from the materials furnished by the
particular statute in regard to which the opportunity for judicial
review was asserted. This is the lesson to be drawn from the prior
decisions of this Court on judicial review, and not any doctrinaire
notions of general applicability to statutes based on different
schemes of administration and conveying different purposes by
Congress in the utilization of administrative and judicial remedies
for the enforcement of law. However useful judicial review may be,
it is for Congress, and not for this Court, to decide when it may
be used -- except when the Constitution commands it. In this case,
there is no such command. Common law remedies withheld by Congress
and unrelated to a new scheme for enforcing new rights and duties
should not be engrafted upon remedies which Congress saw fit to
particularize. To do so impliedly denies to Congress the
constitutional right of choice in the selection of remedies, and
turns common law remedies
Page 321 U. S. 315
into constitutional necessities simply because they are old and
familiar.
When recently the Agricultural Marketing Act was in litigation
before us, we sustained its constitutionality and defined its scope
in the light of its history, its purposes, and its provisions.
United States v. Rock Royal Co-op., 307 U.
S. 533. We held in that case that a milk handler cannot
challenge in court such an order as the one which is now assailed.
Again we must turn to the history, the purposes, and the provisions
of the Act to determine whether Congress gave the producer the
right of judicial relief here sought.
In 1931 and 1932, prices of manufactured dairy products reached
the lowest level in twenty-five years. Because of their relatively
weak bargaining position, milk producers suffered most seriously.
See Mortenson, Milk Distribution as a Public Utility, p.
6; Black, The Dairy Industry and the AAA, c. III; State Milk and
Dairy Legislation (U.S. Gov't Printing Office, 1941) p. 3.
Accordingly, Congress decided that the public interest in the
handling of milk in interstate commerce could no longer be left to
the haggling of a disorderly market, mitigated by inadequate
organization within the industry. The Agricultural Adjustment Act
of 1933, c. 25, 48 Stat. 31, was the result. The "essential
purpose" of the series of enactments thus initiated was to raise
the producer's prices. Sen.Rep. No. 1011, 74th Cong., 3d Sess., p.
3. The Act of 1933 was amended in 1935, c. 641, 49 Stat. 750, and
partially reenacted and amended by the Agricultural Marketing
Agreement Act of 1937, with which we are here concerned. Chapter
296, 50 Stat. 246, c. 567, 50 Stat. 563, 7 U.S.C. § 601
et
seq.
An elaborate enactment like this, devised by those who know the
needs of the industry and drafted by legislative specialists, is to
be treated as an organism. Every part
Page 321 U. S. 316
must be related to the scheme as a whole. The legislation is a
self-contained code, and within it must be found whatever remedies
Congress saw fit to afford. For the Act did not give new remedies
for old rights. It created new rights and new duties, and precisely
defined the remedies for the enforcement of duties and the
vindication of rights. Of course, the statute concerns the
interests of producers, handlers and consumers. But it does not
define or create any legal interest for the consumer, and it
specifically provides that "[n]o order issued under this title
shall be applicable to any producer in his capacity as a producer."
§ 8c(13)(B).
The statute as an entirety makes it clear that obligations are
imposed on handlers alone. Section 8c(5)(A) authorizes the
Secretary to classify milk according to the form in which or the
purpose for which it is used. Section 8c(5)(B)(ii) directs the
Secretary to provide for the payment to producers of a uniform
price "irrespective of the uses made of such milk by the individual
handler to whom it is delivered." This latter, known as the
"blended price," is computed under the Secretary's Order No. 4 of
July 28, 1941, by multiplying the use value of the milk by the
total quantity, making specified deductions and additions, and then
dividing the resulting sum by the total quantity of the milk.
§ 904.7(b). A deduction for payments to cooperatives which
enters into this computation is the object of petitioners'
attack.
It is apparent that the minimum "blended price" which the
producer receives may be different than the minimum "use value"
fixed by the Secretary or his Administrator which the handler must
pay. Thus, § 8c(5)(C) authorizes provision for necessary
adjustments. The mechanics of these adjustments are described in
the Secretary's Order No. 4. In short, the handler who sells or
uses his milk so that its value is more than the minimum "blended
price" he pays the producer must pay the excess to a settlement
Page 321 U. S. 317
fund, and the handler who puts his milk to a lower value use
than the minimum "blended price" he pays in turn receives the
difference out of the fund. § 904.8(b).
Violation of any order by a handler makes him subject to
criminal proceedings. § 8c(14). Thus, while the Act and the
Order may affect the interests of producers as well as those of
handlers, legally they operate directly against handlers only. The
corrective processes provided by the Act reflect this situation.
Section 8c(15) permits a handler to challenge an order before the
Secretary, and, if dissatisfied, he may bring suit in equity before
a district court. Provision for judicial remedies for consumers and
producers is significantly absent. Such omission is neither
inadvertent nor surprising. It would be manifestly incongruous for
an Act which specifically provides that no order shall be directed
at producers to give to producers the right to attack the validity
of such an order in court.
To create a judicial remedy for producers when the statute gave
none is to dislocate the Congressional scheme of enforcement. For
example, § 8c(15)(B) provides that the pendency of a
proceeding for review instituted by a handler shall not impede or
delay proceedings brought under § 8a(6) for compliance with an
order. Because there is no provision for court review of an order
on a producer's petition, naturally there is no corresponding
provision to guard against such interference with enforcement of an
order. By giving producers the right to sue although Congress
withheld that right, the suspension of a milk order pending
disposition of a producer's suit will now depend upon the
discretion of trial judges. And technical details concerning the
milk industry that were committed to the Secretary of Agriculture
are now made subjects of litigation before ill equipped courts.
By denying them access to the courts, Congress has not left
producers to the mercy of the Secretary of Agriculture. Congress
merely has devised means other than judicial
Page 321 U. S. 318
for the effective expression of producers' interests in the
terms of an order. Before the Secretary may issue an order, he is
required to "give due notice of and an opportunity for a hearing
upon a proposed order." § 8c(3). At such a hearing, all
interested persons may submit relevant evidence, and the procedure
makes adequate provision for notice to those who may be affected by
an order.
See Administrative Procedure and Practice in the
Department of Agriculture under the Agricultural Marketing
Agreement Act of 1937 (U.S. Department of Agriculture, 1939) p. 11
et seq. Nor are these the only or the most effective means
for safeguarding the producer's interest. While an order may be
issued despite the objection of handlers of more than 50% of the
volume of the commodity covered by the order, no order may issue
when not approved by at least two-thirds -- either numerically or
according to volume of production -- of the producers. §
8c(9).
The fact that Congress made specific provision for submission of
some defined questions to judicial review would hardly appear to be
an argument for inferring that judicial review even of broader
scope is also open as to other questions for which Congress did not
provide judicial review. The obvious conclusion called for is that,
as to such other questions, judicial review was purposefully
withheld. In the frame of this statute, such an omission should not
be treated as having no meaning, or rather as meaning that an
omission is to be given the same effect as an inclusion. Nor does
§ 8a(8) referring to remedies "existing at law or in equity"
touch our problem. That only adds to the remedies in §
8a(5)-(7) for the enforcement of the Act. It in no way qualifies or
expands the express provisions of the Statute in § 8c(15) for
judicial review of such an order as the present -- specification of
the class of persons who are given the right to resort to courts
and narrow limitation of the scope of judicial review. The remedy
of review here sought by producers is by § 8c(15)
explicitly
Page 321 U. S. 319
restricted to handlers, and such review is not like that, before
the Court, a conventional suit in equity, but is a procedure for
review of an adverse ruling in a price proceeding before the
Secretary of Agriculture. It is a review of an administrative
review, not an independent judicial determination.
An elaborate process of implications should not be invented to
escape the plain meaning of § 8c(15) and to dislocate a
carefully formulated scheme of enforcement. That is not the way to
construe such legislation -- that is, if Chief Justice Taft was
right in characterizing as "a conspicuous instance of his [Chief
Justice White's] unusual and remarkable power and facility in
statesmanlike interpretation of statute law," 257 U.S. xxv, the
doctrine established in
Texas & Pac. R. v. Abilene Cotton
Oil Co., 204 U. S. 426, and
more particularly the way in which § 22 of the Act to Regulate
Commerce was therein construed to effectuate the purposes of that
Act. 204 U.S. at
204 U. S.
446-447.
The Court is thus adding to what Congress has written a
provision for judicial relief of producers. And it sanctions such
relief in a case in which petitioners have no standing to sue on
any theory. The only effect of the deduction which is challenged by
the producers is to fix a minimum price to which they are entitled
perhaps lower than that which might otherwise have been determined.
But the Act does not prevent their bargaining for a price higher
than the minimum, and we are advised by the Government of what is
not denied by petitioners -- that such arrangements are by no means
unusual. This Court has held that a consumer has no standing to
challenge a minimum price order like the one before us.
Atlanta
v. Ickes, 308 U.S. 517;
cf. Sprunt & Son v. United
States, 281 U. S. 249.
Surely a producer who may bargain for prices above the minimum is
in no better legal position than a consumer who urges that too high
a minimum has
Page 321 U. S. 320
been improperly fixed. The Commonwealth of Massachusetts, which
purchased milk for its public institutions valued at $105,232.97 in
1940 and $117,584.50 in 1941, has hardly a less substantial
interest in the minimum price than that of the petitioners. And yet
Massachusetts has no standing to object to the minimum fixed by an
order.
The alleged lower minimum "blended price" is the sum and
substance of petitioners' complaint. If that gives them no standing
to sue, nothing does. An attack merely on the method by which the
blended price was reduced may present an interesting abstract
question, but furnishes no legal right to sue. The producers have
nothing to do with the settlement fund. They receive the blended
price in any event. Even assuming that the Administrator may have
fixed a blended price in ways that may argue an inconsistency
between what he has done and what Congress told him to do, any
resulting disadvantage to a producer is wholly unrelated to the
settlement fund. That fund is contributed by handlers and paid by
handlers. If handlers may not attack payments to cooperatives, as
this Court held in
United States v. Rock Royal Co-op.,
supra, at
307 U. S. 561,
with all deference, I am unable to see how producers can be in a
better position to attack such payments. This suit was rightly
dismissed.