By the Federal Tobacco Inspection Act, Congress provided for the
establishment of uniform standards of classification and inspection
of tobacco for the protection of interstate commerce and authorized
the Secretary of Agriculture
"to establish standards for tobacco by which its type, grade,
size, condition, or other characteristics may be determined, which
standards shall be the official standards of the United
States."
Pursuant thereto, the Secretary prescribed by regulation
that
"Tobacco which has the same characteristics and corresponding
qualities, colors, and lengths shall be treated as one type,
regardless of any factors of historical or geographical nature
which cannot be determined by an examination of the tobacco."
The regulations define type 14 as
"That type of flue-cured tobacco commonly known as Southern
Flue-cured or New Belt of Georgia, Florida, and Alabama, produced
principally in the southern section of Georgia and to some extent
in Florida and Alabama."
When the tobacco is offered for sale, the federal regulations
require that it be identified by a blue tag which states the type
and grade thereof. A Georgia law requires type 14 tobacco grown in
Georgia to be identified by a white tag.
Held: the federal law preempts the field and excludes
state regulation, even though the latter does no more than
supplement the former. Therefore, the Georgia statute requiring
type 14 tobacco to be identified with a white tag when it is grown
in Georgia is unconstitutional. Pp.
368 U. S.
298-302.
189 F. Supp. 54, affirmed.
Page 368 U. S. 298
MR. JUSTICE DOUGLAS delivered the opinion of the Court.
This is a suit brought by owners and operators of tobacco
warehouses in Georgia to enjoin officials of Georgia from enforcing
certain provisions of the Georgia Tobacco Identification Act.
Ga.Laws 1960, No. 557, p. 214. A three-judge court was convened, 28
U.S.C. §§ 2281, 2284, and it granted the relief. 189 F.
Supp. 54. The case is here by direct appeal. [
Footnote 1].
The provisions of the Georgia Act that are challenged concern
type 14 flue-cured leaf tobacco. It is defined in § 1 of the
Act as "that flue-cured leaf tobacco grown in the traditional
loose-leaf area which consists of the State[s] of Georgia, Florida,
and Alabama." By § 13(A) of the Act, type 14 tobacco received
in a warehouse for sale [
Footnote
2] shall be marked with a "white sheet ticket."
Sales at these warehouses are sales within the competence of
congress to regulate. As stated in
Mulford v. Smith,
307 U. S. 38,
307 U. S.
47:
"In Georgia, nearly one hundred percent of the tobacco so sold
is purchased by extrastate purchasers. In markets where tobacco is
sold to both
Page 368 U. S. 299
interstate and intrastate purchasers, it is not known, when the
grower places his tobacco on the warehouse floor for sale, whether
it is destined for interestate or intrastate commerce. Regulation,
to be effective, must, and therefore may constitutionally, apply to
all sales."
Congress in 1935 enacted the Tobacco Inspection Act, 49 Stat.
731, 7 U.S.C. § 511, and in its declaration of purpose, §
2, 7 U.S.C. § 511a, stated:
". . . the classification of tobacco according to type, grade,
and other characteristics affects the prices received therefor by
producers; without
uniform standards of classification and
inspection, the evaluation of tobacco is susceptible to
speculation, manipulation, and control, and unreasonable
fluctuations in prices and quality determinations occur which are
detrimental to producers and persons handling tobacco in commerce;
such fluctuations constitute a burden upon commerce and make the
use of
uniform standards of classification and inspection
imperative for the protection of producers and others engaged in
commerce and the public interest therein."
(Italics added.)
By § 511b, the Secretary of Agriculture is authorized
"to establish standards for tobacco by which its type, grade,
size, condition, or other characteristics may be determined, which
standards shall be
the official standards of the United
States. . . ."
(Italics added.)
Detailed standards have been prescribed by the Secretary. As to
the "type" of tobacco, the regulations state:
". . . Tobacco which has the same characteristics and
corresponding qualities, colors, and lengths shall be treated as
one type,
regardless of any factors of historical or
geographical nature which cannot be determined by an
examination of the tobacco."
7 C.F.R., 1961 Cum.Supp., § 29.1096. (Italics added.)
Type 14 is defined as
"That type of flue-cured tobacco commonly known as Southern
Flue-cured or New Belt
Page 368 U. S. 300
of Georgia, Florida, and Alabama, produced
principally
in the southern section of Georgia and to some extent in Florida
and Alabama."
7 C.F.R., 1961 Cum.Supp., § 29,1100. (Italics added.)
The regulations also provide that the classification of the
tobacco by type be placed on a federal inspection certificate and
announced at the time the lot is offered in the auction (7 C.F.R.
§ 29.80, 7 C.F.R., 1961 Cum.Supp., § 29.1144) -- an
identification made by a blue ticket.
The question is whether the federal scheme of regulation has
left room for Georgia to identify type 14 tobacco with a white tag
when it is grown in Georgia, Florida, or Alabama.
It is earnestly argued that there is no conflict between
Georgia's regulation and the federal law, as all that Georgia
requires is that type 14 tobacco, grown in Georgia, be labeled as
such. In that connection, it is pointed out that type 14 tobacco,
as defined by the federal regulations, includes tobacco "produced
principally" in Georgia, Florida, and Alabama, and that labeling it
by its geographical origin merely supplements the federal
regulation, and does not conflict with it.
We do not have here the question whether Georgia's law conflicts
with the federal law. Rather, we have the question of preemption.
Under the federal law, there can be but one "official" standard --
one that is "uniform" and that eliminates all confusion [
Footnote 3] by classifying tobacco
Page 368 U. S. 301
not by geographical origin, but by its characteristics. In other
words, our view is that Congress, in legislating concerning the
types of tobacco sold at auction, preempted the field and left no
room for any supplementary state regulation concerning those same
types. As we have seen, the Federal Tobacco Inspection Act in
§ 2, 7 U.S.C. § 511a, says that "uniform standards of
classification and inspection" are "imperative for the protection
of producers and others engaged in commerce and the public interest
therein." The House Report No. 1102, 74th Cong., 1st Sess.,
reviewed at length the harm to growers that resulted from the
absence of regulations governing the "grades" of tobacco sold on
the auction market.
"There are between 60 and 100 grades in a single type of
tobacco, and it is not practical for a farmer to familiarize
himself with the technical factors on which these grades are based.
. . ."
Id., p. 2. The need for "a definite standard" of
grading,
id., p. 2, or of "standard grades,"
id.,
p. 4, was repeated over and again. The importance of a "standard
grade" was emphasized in the debates on the floor of the House.
Congressman Hancock stated that this legislation provided that
tobacco on the auction market "would be inspected by competent
judges of tobacco in Government employ and graded according to
United States standards of quality. . . ." 79 Cong.Rec. 11870.
Congressman Mitchell added that "Standard grades would serve as a
guide to farmers in classifying their tobacco for market."
Id., 11878. The Senate Report No. 1211, 74th Cong., 1st
Sess., based its approval of the bill on a report made by the
Department of Agriculture. After stating that the purpose of the
bill was to provide "uniform standards" for the protection of
farmers, the report added:
"The bill would authorize the Secretary of Agriculture to
establish
Page 368 U. S. 302
standards for tobacco by which its type, grade, size, condition,
or other characteristics may be determined, and the standards so
established would be the official standards of the United States
for such purpose."
Id., p. 1.
The Act, as we have seen, adopts that view by making the "type,
grade, size, condition" given inspected tobacco "the official
standards of the United States." § 3, 7 U.S.C. § 511b.
The regulations are precise and unequivocal in saying what those
"official standards" are. Among other things, they say, as already
noted, that tobacco
"which has the same characteristics and corresponding qualities,
colors, and lengths shall be treated as one type, regardless of any
factors of historical or geographical nature which cannot be
determined by an examination of the tobacco."
7 C.F.R., 1961 Cum.Supp., § 29.1096. Tobacco is includable
in type 14, regardless of where it may have been grown, provided it
meets the specifications of that type.
We have, then, a case where the federal law excludes local
regulation, even though the latter does no more than supplement the
former. Under the definition of types or grades of tobacco and the
labeling which the Federal Government has adopted, complementary
state regulation is as fatal as state regulations which conflict
with the federal scheme.
Missouri Pacific R. Co. v.
Porter, 273 U. S. 341,
273 U. S. 346;
Rice v. Santa Fe Elevator Corp., 331 U.
S. 218,
331 U. S. 230;
H. P. Hood & Sons v. Du Mond, 336 U.
S. 525,
336 U. S.
543.
Affirmed.
MR. JUSTICE WHITTAKER concurs in the result.
[
Footnote 1]
Of the several infirmities which Georgia's law is alleged to
have, only one was reached by the lower court, namely, the
constitutionality of the law in light of the requirements of the
Commerce Clause. The complaint also challenged the
constitutionality of the law on the grounds that it violated both
the Equal Protection and the Due Process Clauses of the Fourteenth
Amendment. Plainly the case was one to be heard by a three-judge
court.
See Florida Lime & Avocado Growers, Inc. v.
Jacobsen, 362 U. S. 73.
[
Footnote 2]
The manner of sale is described in
Townsend v. Yeomans,
301 U. S. 441,
301 U. S. 445;
Currin v. Wallace, 306 U. S. 1,
306 U. S. 7-8;
American Tobacco Co. v. United States, 328 U.
S. 781,
328 U. S.
800.
[
Footnote 3]
The court below stated:
"The Georgia statute defines Type 14 tobacco on the basis of
geographical origin, and upon no other basis. If it is grown in
Georgia, it would be Type 14 under the Georgia law, and be given a
white tag; while if it came from the other side of the Savannah
River in South Carolina, it would not be Type 14, and would be
given a blue tag. . . ."
"Both the purpose and effect of the Georgia enactment were to
make a distinction at the markets, by the color tags, between
tobacco grown in Georgia and that grown elsewhere. The effect was
to create a wide disparity of price between the two groups of
tobacco, the Carolina growers receiving a much lower amount. This
resulted in losses of business to the plaintiff warehousemen."
189 F. Supp. 54, 59.
Dissenting opinion of MR. JUSTICE BLACK, joined by MR. JUSTICE
FRANKFURTER and MR. JUSTICE HARLAN, announced by MR. JUSTICE
FRANKFURTER.
Acting under unchallenged authority granted him by the Federal
Tobacco Inspection Act [
Footnote
2/1] to classify tobacco
Page 368 U. S. 303
into "types" and "grades" and to designate "auction markets" at
convenient points in "type areas," the Secretary of Agriculture has
established a comprehensive tobacco classification system made up
of some 27 different types of tobacco -- based upon chemical
qualities resulting from the geographical factors of soil and
climate [
Footnote 2/2] -- which
are, in turn, broken down into some 170 different grades -- based
upon such visual factors as group, quality and color. [
Footnote 2/3] The question in this case
relates to one of those 27 types, Type 14 flue-cured tobacco, and
has nothing whatever to do with the Secretary's grade
classification regulations.
Type 14 flue-cured tobacco, as defined in the official
Department of Agriculture regulations, is:
"That type of flue-cured tobacco commonly known as Southern
Flue-cured or New Belt of Georgia, Florida, and Alabama, produced
principally in the southern section of Georgia and to some extent
in Florida and Alabama. [
Footnote
2/4]"
While § 8 of the Federal Act requires tobacco sold at
designated auction markets to bear a tag showing the Department of
Agriculture's official grade, it contains no such requirement for a
tag showing its official type. [
Footnote 2/5]
Page 368 U. S. 304
Because of this omission and the fact, established here by
expert testimony, that, during the last five years, Type 14
"tobacco has had the reputation of being the best tobacco produced
in the United States," growers and speculators from areas outside
Georgia, Florida, and Alabama have taken advantage of the general
similarity in appearance of all types of flue-cured tobacco in
order to sell their tobacco on Georgia markets as Type 14. Acting
on complaints that this practice constituted a fraud upon Georgia
tobacco growers as well as upon buyers coming into the State, the
Georgia Legislature passed a law requiring that warehousemen within
the State place a tag on all tobacco sold within the State showing
whether it is Type 14 tobacco or not. [
Footnote 2/6] To accomplish this purpose, the Georgia
law established the following definition:
"Type 14 flue-cured leaf tobacco as used herein shall mean that
flue-cured leaf tobacco grown in the traditional loose-leaf area
which consists of the State[s] of Georgia, Florida, and Alabama.
[
Footnote 2/7]"
Despite the variations in their wordings, it is obvious that
there is no conflict between this Georgia law and the regulation of
the Department of Agriculture, and that the definitions of Type 14
tobacco in the Georgia law and the federal regulation mean
precisely the same thing -- namely, that tobacco grown in Georgia,
Florida and Alabama, and that tobacco only, can be classified as
Type 14. Whatever doubt might otherwise have existed on this score
is completely dispelled by the record in this case. For the parties
to this lawsuit, who have lived under and can be presumed to be
familiar with the Department of
Page 368 U. S. 305
Agriculture's regulation, themselves stipulated that the Federal
Government had "designated as Type 14 tobacco only flue-cured
tobacco grown in Georgia, Florida, and Alabama." Two responsible
Department of Agriculture officials unequivocally supported the
correctness of this stipulation -- one testifying that Type 14 was
a classification according to "geographical origin" and the other,
the then Director of the Tobacco Division of the Commodity
Stabilization Service, [
Footnote
2/8] testifying that only three things went in the Department's
Type 14 definition, "geography, soil and climate." There was also
in evidence the 1959 official map of the Department showing, as has
every other Department map since passage of the Act, [
Footnote 2/9] that all Type 14 flue-cured
tobacco is grown well within the borders of Georgia, Florida and
Alabama, and that the other "type areas" in which flue-cured
tobacco is grown do not even approach the plainly defined limits of
the Type 14 area. [
Footnote 2/10]
That the Department of Agriculture did not regard the Georgia law
attacked here as inconsistent with its regulations is further, and
specifically, shown by the fact that, after passage of the Georgia
law, the Department itself issued a regulation, 6 C.F.R., 1961
Cum.Supp., § 464.1211(b) -- which the record shows was
designed to protect Florida markets precisely as the Georgia law
protects Georgia markets -- approving the Georgia definition
Page 368 U. S. 306
by also requiring identifying colored tags for "all tobacco . .
. offered for sale at auction which is determined to have been
produced in Georgia, Florida, or Alabama." Thus, it is clear beyond
dispute, as the Department's map and regulation recognized, that
neither the Georgia nor the Department definitions of Type 14
conflict with the requirement of Department regulation §
29.1096 that tobacco with the
"same characteristics . . . shall be treated as one type,
regardless of any factors of historical or geographical nature
which cannot be determined by an examination,"
because there are geographical factors of soil and climate in
Georgia, Alabama, and Florida resulting in distinct
"characteristics" which are determinable by chemical
examination.
The Court is therefore compelled to decide this case, as to me
it apparently does, on the premise that the Georgia definition of
Type 14 tobacco is not in conflict with, but rather is precisely
the same as, the federal definition. Consequently, the Court must
accept as an undoubted fact that the full effect of the Georgia law
is simply to assure that bidders at Georgia auction markets located
in the Type 14 area will be able to distinguish between officially
classified Type 14 tobacco, grown only in Georgia, Florida and
Alabama, and other types of tobacco grown in other States. Since
the conceded basic purpose of the Federal Act itself was to assure
that tobacco growers and buyers would have as much information as
possible about the commercial qualities of tobacco sold on auction
markets, the Court must also admit that this Georgia law is
designed to and does help to effectuate the Federal Act and to
secure all of the benefits of that Act's official tobacco type
classifications. At least as early in the history of this country
as 1619, when Virginia passed its first tobacco inspection act, the
States have sought to protect honest sellers of tobacco from those
who were
Page 368 U. S. 307
willing for a profit to damage the integrity of the product.
[
Footnote 2/11] Yet the Court now
holds that Congress, by passing the Federal Tobacco Inspection Act,
intended to cover the entire field of tobacco regulation, even to
the extent of compelling States to abandon historic laws that are
not only completely in harmony with federal type classifications,
but are actually necessary to give them full effect.
In so holding, it seems to me that the Court departs drastically
from its long continued practice of not striking down state laws as
unconstitutional except where such decisions are compelled by
considerations which are manifest and clear after careful study and
analysis of the issues involved. Here, the Court's opinion presents
not so much as one fact which indicates that Congress actually
intended by the passage of the Federal Act to preclude the States
from passing laws which require only that warehousemen place a
label on each lot of tobacco offered for sale truthfully showing
its official federal type. Indeed, the Court even cites two prior
cases in which this Court, in dealing with this very same Federal
Act, has explicitly recognized that there is no basis whatever in
the Act's language, history or purpose to justify a finding of a
congressional intent to preempt merely complementary state
legislation. In
Townsend v. Yeomans, [
Footnote 2/12] Mr. Chief Justice Hughes, after a
full canvass of the language, history, and purpose of the Federal
Act and of tobacco inspection laws generally, rejected for the
Court the contention that this Act precluded a Georgia law
regulating the charges of warehousemen operating under the Act,
pointing out that the federal law "had a limited objective," and
going on to say:
"Instead of frustrating the operation of such state laws, the
provisions of the act expressly afforded and
Page 368 U. S. 308
emphasized the opportunity for cooperation with the states in
protecting the farmers' interests. In this view, we find no ground
for the contention that Congress has taken possession of the field
of regulation to the exclusion of state laws which do not conflict
with its own requirements. [
Footnote
2/13]"
This statement was reiterated and buttressed when, two years
later, the Court was called upon to pass on the constitutionality
of the Tobacco Inspection Act in
Currin v. Wallace.
[
Footnote 2/14] Mr. Chief Justice
Hughes, again speaking for the Court, expressly adhered to the view
the Court had earlier taken of the Act:
"But [in
Townsend v. Yeomans] we found nothing in the
federal Act which undertook to regulate the charges of
warehousemen, and hence we concluded that Congress had restricted
its requirements and left the State free to deal with the matters
not covered by the federal legislation and not inconsistent
therewith. [
Footnote 2/15]"
I think it plain that the Court was entirely correct in the
Townsend and
Currin cases. There is not a word in
the Tobacco Inspection Act nor anything that has been cited in its
legislative history that indicates a clear and manifest purpose on
the part of Congress to preclude the exercise by Georgia of the
historic power of States to pass local legislation to protect the
integrity of its tobacco on the market and to prevent the
commission of fraud upon buyers who come to deal in tobacco within
its borders. The purpose of the Federal Act, as plainly disclosed
both in its language and legislative history, was to promote the
dissemination of information on the tobacco market, not to restrict
the availability of such
Page 368 U. S. 309
information. [
Footnote 2/16]
The failure of the Federal Act itself to require the open
disclosure of tobacco types as well as tobacco grades cannot by any
stretch of the imagination be taken as evidence of a congressional
intent that tobacco types should remain a secret on the market. For
the Act itself plainly shows why that omission was made. Congress
knew that the various types of tobacco were grown in geographically
separate "type areas," and further knew that, under the marketing
practices then being used in the tobacco industry, tobacco was
marketed in the "type area" in which it was grown. Consequently,
under the conditions then generally prevailing, there was no need
to require the disclosure of tobacco types for the simple reason
that no two types of tobacco were sold on the same market.
[
Footnote 2/17]
Page 368 U. S. 310
The record in this case shows, however, that marketing practices
in the tobacco industry have changed radically in recent years. An
ever-increasing amount of tobacco is being taken from the type area
in which it is grown into another type area for sale [
Footnote 2/18] -- particularly into
Georgia, where the higher prices which prevail on that market as a
result of the commercially superior qualities of Type 14 tobacco
constitute a powerful lure to growers and tobacco speculators who
want to sell superficially similar tobacco of other types. This
tremendous influx of unidentified commercially inferior tobacco
threatens literally to destroy the Georgia market for Type 14
tobacco, and rob the tobacco growers of that State of the value of
their labor. By attempting to eliminate claimed unfairness and
outright fraud in the sale of tobacco on the Georgia federal
markets, the Georgia Act thus seeks to do no more than prevent a
partial frustration through changing commercial practices of the
very objective Congress itself sought to attain by the enactment of
the Tobacco Inspection Act.
The whole structure of the Federal Act plainly shows, I think,
that, far from precluding this sort of state cooperation in the
effectuation of the federal purpose, Congress affirmatively
intended, and, as pointed out by Mr. Chief Justice Hughes in the
Townsend and
Currin cases, actually hoped for,
such cooperation. The Tobacco Inspection Act is not one that forces
federal regulation on unwilling local communities. Before the
Secretary of Agriculture can designate "auction markets" upon
which
Page 368 U. S. 311
compliance with the provisions of the Act is mandatory, § 5
of the Act requires that a referendum be conducted and the consent
of two-thirds of the growers who used the market in the previous
season be obtained. That section also expressly denies the
Secretary power to "close any market" or "to prevent transactions
in tobacco at markets not designated" by him, although it does give
him power to provide, on a purely voluntary basis, federal
inspection and grading to those growers selling on such markets who
wish to avail themselves of those services. Section 6 of the
Federal Act expressly recognizes the continued existence of state
functions and powers by providing that the Secretary of Agriculture
may make agreements with state agencies covering employment of the
inspectors, samplers and weighers who perform the tasks of
inspecting, grading and typing tobacco, thus making it plain that,
even as to these most central features of the Federal Act, Congress
intended no sweeping exclusion of the States.
Insofar as the Court even bothers here to take a fresh look at
the specific language and legislative history of the Federal Act,
it does so not for the purpose of reevaluating the correctness of
the understanding of the Act set forth in the
Townsend and
Currin cases, but solely for the purpose of showing that
the Federal Act was designed to set up "uniform standards of
classification and inspection" for tobacco to be sold at federally
designated warehouses -- a fact which I certainly do not controvert
and which, so far as I know, none of the parties to this lawsuit
has controverted. The Court makes no attempt to relate this fact to
the issue in this case and show just how this congressional purpose
supports an inference that Congress intended to preclude the States
from requiring that the "uniform standards of classification" so
established and applied by official federal inspection be disclosed
on each lot of tobacco sold. Instead, the Court
Page 368 U. S. 312
proceeds from the bare fact of congressional legislation to the
conclusion of federal preemption by application of a mechanistic
formula which operates independently of congressional intent. That
formula, as stated by the Court, is that "complementary state
regulation is as fatal as state regulations which conflict with the
federal scheme." I know of no case in which this formula has
previously been applied by this Court. Certainly, the three cases
which it cites do not support its action here.
Missouri Pacific R. Co. v. Porter, [
Footnote 2/19] the first case cited by the Court,
did make the statement that state laws
"cannot be applied in coincidence with, as complementary to or
as in opposition to, federal enactments which disclose the
intention of Congress to enter a field of regulation that is within
its jurisdiction."
But this statement was made only after the Court had discussed
the congressional act involved there in great detail, and found
Congress to have concluded that "no other regulation is necessary."
[
Footnote 2/20] That the Court in
Missouri Pacific did not intend to go outside of the facts
there before it and lay down a rule of automatic preemption by
"coincidence" is plainly shown by the authorities relied upon to
support its passing reference. The first case cited,
Napier v.
Atlantic Coast Line R. Co., [
Footnote 2/21] is typical. In
Napier, Mr.
Justice Brandeis, in his usual careful way, declared that, in
considering the question of preemption "The intention of Congress
to exclude States from exerting their police power must be clearly
manifested. . . ." [
Footnote
2/22] The
Missouri Pacific case can therefore support
preemption only upon the basis of congressional intent, and does
not lend the slightest support to the mechanistic preemption rule
which the Court applies here.
Page 368 U. S. 313
The second case relied on by the Court for its mechanical
formula is
Rice v. Santa Fe Elevator Corp. [
Footnote 2/23] The
Santa Fe
Elevator case, however, does not support the Court's
mechanical formula any more than the
Missouri Pacific
case. On the very page cited by the Court, it was said:
"Congress legislated here in a field which the States have
traditionally occupied. . . . So we start with the assumption that
the historic police powers of the States were not to be superseded
by the Federal Act unless that was the clear and manifest purpose
of Congress."
More importantly, the Court did not, in
Santa Fe
Elevator, treat the question of preemption as one which could
be settled by application of the rigid formula used here to strike
down this Georgia law. Quite the contrary, recognizing that
preemption "is often a perplexing question," the Court analyzed the
issue before it at great length, and concluded that Congress
intended to preempt the supplementary state regulation there
involved only after demonstrating that the language of the
Warehouse Act as amended, "the special and peculiar history" of the
amendment to the Act, and the underlying purpose of the Act all
manifested a clear congressional purpose to preempt all state
action in the field. Far from supporting the mechanical formula
used by the Court here to declare Georgia's law unconstitutional,
Santa Fe Elevator stands as a clear refutation of that
formula, and contains a very clear statement of the proper rule
which, before today, has governed this Court's holdings on
preemption -- the rule that preemption of the historic police
powers of the States can be found only where "that was the clear
and manifest purpose of Congress."
Page 368 U. S. 314
The final case relied upon by the Court is
H. P. Hood &
Sons v. Du Mond. [
Footnote
2/24] But this was not a preemption case at all. There, a
majority of the Court decided that a New York law burdened commerce
in violation of the Commerce Clause. The Court's opinion did make a
casual reference to "decisions that coincidence is as fatal as
conflict when Congress acts," but it relied in no way upon this
statement for its holding, and the only case cited to support that
proposition was one in which the Court held a State preempted by a
federal statute only after carefully showing that Congress had
intended to preclude state legislation of the kind there involved.
[
Footnote 2/25]
Just a few weeks after the decision in
H. P. Hood & Sons
v. Du Mond, however, this Court did, in
California v.
Zook, [
Footnote 2/26]
specifically deal with the argument
"that, when Congress has made specified activity unlawful,
'coincidence is as ineffective as opposition,' and State laws
'aiding' enforcement are invalid."
The Court there emphatically rejected the idea that identity of
purpose between a federal and a state statute meant "the automatic
invalidity of State measures." It treated coincidence as only one
factor in the complicated pattern of facts relevant to the question
of preemption, pointing out, in the words of Mr. Justice Holmes,
that this is a question which "must be answered by a judgment upon
the particular case." [
Footnote
2/27] A dissent in the
Zook case, written by Mr
Justice Burton
Page 368 U. S. 315
and concurred in by MR. JUSTICE DOUGLAS and Mr. Justice Jackson,
took the position, apparently taken by the Court here, that, when
Congress passes a law in the interstate commerce field and the
State passes one consistent with it,
"coincidence is as ineffective as opposition, and a state law is
not to be declared a help because it attempts to go farther than
Congress has seen fit to go. [
Footnote 2/28]"
That, when Congress passes a law regulating interstate commerce,
all state laws in any way touching on the subject are obliterated
was nothing but a dissenting view before this case was decided
today.
The correct test in determining whether a federal act results in
preemption is that stated in
Rice v. Santa Fe Elevator,
which requires that
"the historic police powers of the States . . . not . . . be
superseded by the Federal Act unless that was the clear and
manifest purpose of Congress. [
Footnote 2/29]"
Measured by that test, the Georgia law here cannot be
invalidated.
Page 368 U. S. 316
There can be no doubt that the power upon which this Georgia law
was based is one of the powers historically exercised by the
States. As pointed out before, the power to regulate tobacco in
order to protect the integrity of the product was exercised by
Virginia as early as 1619. Indeed, in the midst of a marketing
crisis in 1666, Lord Baltimore proposed a law, closely similar to
the Georgia law here, which would have required that all tobacco
from his Colony be labeled "Maryland" in order to distinguish it
from Virginia tobacco, the only other type of tobacco then being
grown in the Colonies. [
Footnote
2/30] Even this Court, in times past, has recognized the
historic powers of the States in this area. In
Turner v.
Maryland, [
Footnote 2/31]
the Court rejected the contention that the States are barred by the
Commerce Clause from requiring that tobacco grown within their
borders be labeled to indicate its origin, saying:
"The legislature of the State of Maryland, from the earliest
history of the colony and since the formation of the state
government, has made the inspection of tobacco raised in that State
compulsory. That inspection has included many features, and has
extended to the form, size, and weight of the packages containing
tobacco, as well as to the quality of the article. Fixing the
identity and weight of tobacco alleged to have been grown in the
State, and thus preserving the reputation of the article in markets
outside of the State, is a legitimate part of inspection laws, and
the means prescribed therefor in the statutes in question naturally
conduce to that end. "
Page 368 U. S. 317
I do not question the doctrine that a purpose of Congress to
preclude all state legislation can be implied if the history,
purpose, language, and comprehensiveness of an act makes such a
congressional purpose clear and manifest. But I do not think that
such a purpose can properly be found through use of so mechanically
compelling a formula as the Court uses here -- particularly when
the result is to undercut a state policy of protecting tobacco
growers and purchasers which has the experience in this country of
almost three and a half centuries behind it.
[
Footnote 2/1]
49 Stat. 731, 7 U.S.C. §§ 511-511q.
[
Footnote 2/2]
See 7 C.F.R., 1961 Cum.Supp., § 29.1096. Under the
Department of Agriculture's classification system, "type" is a
subdivision of "class," which is largely determined by the method
used to cure the tobacco.
See 7 C.F.R., 1961 Cum.Supp.,
§ 29.1040.
[
Footnote 2/3]
7 C.F.R., 1961 Cum.Supp., § 29.1053.
[
Footnote 2/4]
C.F.R., 1961 Cum.Supp., § 29.1100.
[
Footnote 2/5]
While the two Department of Agriculture regulations cited by the
Court, 7 C.F.R. § 29.80 and 7 C.F.R., 1961 Cum.Supp., §
29.1144, could arguably be interpreted to impose a federal
requirement that type as well as grade be shown on each lot of
tobacco sold, the record in this case plainly indicates that this
is not the Department's interpretation of its own regulations. In
the first place, every witness in this case who was called upon to
describe the situation existing prior to 1960 stated unequivocally
that the tobacco type did not appear on the government label
attached to the tobacco at the time of sale. And the Department's
own official said that this was not presently required.
[
Footnote 2/6]
The Georgia Tobacco Identification Act, Ga.Laws 1960, No. 557,
p. 214.
[
Footnote 2/7]
§ 1.
[
Footnote 2/8]
The Commodity Stabilization Service and the Agricultural
Marketing Service are the two branches of the Department of
Agriculture most directly involved in the marketing of tobacco.
[
Footnote 2/9]
In addition, the definition of Type 14 is exactly the same now
as it was under the first Tobacco Inspection Act Regulations.
See § 29.153(vv) of the Rules and Regulations of the
Secretary of Agriculture, Aug. 7, 1936.
[
Footnote 2/10]
It seems clear from this that the solicitude of the court below
for Type 14 growers in South Carolina, as shown in note 3 of the
Court's opinions, is entirely misplaced. The Department's official
map, referred to above, shows plainly that all South Carolina
flue-cured tobacco is Type 13.
[
Footnote 2/11]
Journal of the House of Burgesses (McIlwaine ed.), Laws, 1619,
p. 11.
[
Footnote 2/12]
301 U. S. 301 U.S.
441.
[
Footnote 2/13]
Id. at
301 U. S.
454.
[
Footnote 2/14]
306 U. S. 306 U.S.
1.
[
Footnote 2/15]
Id. at
306 U. S. 13.
[
Footnote 2/16]
Section 9 of the Act, 7 U.S.C. § 511h, provides:
"The Secretary is authorized to collect, publish, and
distribute, by telegraph, mail, or otherwise without cost to the
grower, timely information on the market supply and demand,
location, disposition, quality, condition, and market prices for
tobacco."
That this section constituted an important part of the Act is
shown by the statement of its sponsor, Representative Flannagan, in
introducing his bill on the floor of the House of
Representatives:
"Simply stated, the bill has two objects: first, the grading of
the growers' tobacco before sale by a competent grader in order to
determine what grades the growers have to offer for sale, and
second, furnishing the growers with a daily marketing news service
so they will know what the different grades of tobacco are bringing
on the other tobacco markets, and thus put them in position to
intelligently accept or reject a sale. Surely the growers are
entitled to know what they are offering for sale -- the different
grades of tobacco they have to offer -- and the prices that the
different grades are bringing from day to day upon the different
tobacco markets. Deny them these rights and you deny them the
opportunity to make a fair and honest sale."
79 Cong.Rec. 11802.
[
Footnote 2/17]
Since the earliest days of the tobacco industry in this country,
the marketing of the product has been almost exclusively on a
purely local basis.
See Wyckoff, Tobacco Regulation in
Colonial Maryland, p. 62. That situation persisted substantially at
least up to the year 1950.
See Department of Agriculture
Marketing Research Report No. 101, The Auction Marketing of
Flue-cured Tobacco, p. 8.
[
Footnote 2/18]
The record shows that this practice, which seems to have begun
around 1955, has been growing each year since. Thus, in 1959, more
than 22,000,000 pounds of non-Type 14 Tobacco, representing some
17% of all the tobacco sold in Georgia that year, was brought into
the State for sale to buyers on the implicit assumption that it was
Georgia tobacco.
[
Footnote 2/19]
273 U. S. 273 U.S.
341.
[
Footnote 2/20]
Id. at
273 U. S. 346.
[
Footnote 2/21]
272 U. S. 272 U.S.
605.
[
Footnote 2/22]
Id. at
272 U. S.
611.
[
Footnote 2/23]
331 U. S. 331 U.S.
218,
331 U. S.
230.
[
Footnote 2/24]
336 U. S. 336 U.S.
525,
336 U. S.
543.
[
Footnote 2/25]
Bethlehem Steel Co. v. New York State Labor Relations
Board, 330 U. S. 767.
[
Footnote 2/26]
336 U. S. 336 U.S.
725,
336 U. S.
729.
[
Footnote 2/27]
Id. at
336 U. S. 731.
The quotation relied upon from Mr. Justice Holmes is from his
opinion for the Court in
Pennsylvania R. Co. v. Public Service
Comm'n, 250 U. S. 566,
250 U. S. 569.
This statement by Mr. Justice Holmes is especially significant in
view of the fact that the primary authority often relied upon for a
mechanistic rule of preemption is an earlier statement of his in
Charleston & Western Carolina R. Co. v. Varnville Furniture
Co., 237 U. S. 597,
237 U. S. 604.
There, after holding the state statute involved unconstitutional as
a burden on interstate commerce, he said:
"When Congress has taken the particular subject matter in hand,
coincidence is as ineffective as opposition, and a state law is not
to be declared a help because it attempts to go farther than
Congress has seen fit to go."
In view of his later holding, it seems clear that the
oft-repeated remark of Mr. Justice Holmes was intended to be
nothing more than a judgment of the intent of Congress "upon the
particular case."
See also Bethlehem Steel Co. v. New York
State Labor Relations Board, 330 U. S. 767,
330 U. S. 783
(separate opinion of MR. JUSTICE Frankfurter).
[
Footnote 2/28]
336 U.S. at
336 U. S. 752.
See 368
U.S. 297fn2/27|>n. 27,
supra.
[
Footnote 2/29]
Napier v. Atlantic Coast Line R. Co., 272 U.
S. 605,
272 U. S. 611;
Missouri Pacific R. Co. v. Porter, 273 U.
S. 341,
273 U. S. 346;
Kelly v. Washington, 302 U. S. 1;
California v. Zook, 336 U. S. 725;
Huron Portland Cement Co. v. City of Detroit, 362 U.
S. 440,
362 U. S.
442-443. All these cases and many others that could be
cited plainly show that this Court has consistently rejected the
idea that every time Congress passes a law all state laws touching
on the same subject are automatically destroyed.
See also San
Diego Building Trades Council v. Garmon, 359 U.
S. 236, and the concurring opinion of MR. JUSTICE
HARLAN, joined by MR. JUSTICE CLARK, MR. JUSTICE WHITTAKER and MR.
JUSTICE STEWART, and cases cited therein.
[
Footnote 2/30]
Wyckoff, Tobacco Regulation in Colonial Maryland, p. 76.
Contemporary Virginia legislation also sought to protect the
reputation of Virginia tobacco in much the same manner. 2 Hening,
Laws of Virginia, Act VIII, 1679; 3 Hening, Laws of Virginia, c. V,
1705; 4 Hening, Laws of Virginia, c. VI, 1726.
[
Footnote 2/31]
107 U. S. 107 U.S.
38,
107 U. S.
49.