U.S. Supreme Court PACIFIC STATES BOX & BASKET CO. v. WHITE, 296 U.S. 176 (1935)

[Page 296 U.S. 176, 178]

Messrs. Willis S. Moore and I. H. Van Winkle, both of Salem, Or., for appellees.

Mr. Justic e BRANDEIS delivered the opinion of the Court.

This suit was brought in the federal court for Oregon, in May, 1934, to enjoin enforcement of an order of the Department of Agriculture of that state, dated May 3, 1933, entitled 'Standard Containers for Fruits and Vegetables.' [Footnote 1] The plaintiff, Pacific States Box & Basket Company, is a California corporation which manufactures there fruit and vegetable containers. The defendants are the Director of Agriculture and the Chief of the Division of Plant Industry, of Oregon. The jurisdiction of the District Court was invoked both on the ground of diversity of citizenship and on the ground that the order, and the statutes purporting to authorize it, violate rights of the plaintiff guaranteed by the Federal Constitution. The case was heard upon plaintiff's motion for a preliminary injunction and defendants' motion to dismiss the bill on the ground that it does not state facts sufficient to entitle the plaintiff to relief. The court denied the injunction and dismissed the bill. Pacific States Box & Basket Co. v. Gehlar, 9 F.Supp. 341.

[Page 296 U.S. 176, 182]

perishable, but tender. A shallow container, like the hallock prescribed, may conceivably better preserve these fruits than the deeper cup which the plaintiff manufactures. A container with perpendicular sides, like the hallock, may conceivably preserve them better than a metal rim cup with outward sloping sides. And, since the containers are to be packed and shipped in crates of 24, the berries may conceivably be better stowed where the fruit basket has the bottom set-up peculiar to the hallock, than if it had the flat bottom of the plaintiff's metal rim cup. Considerations of this nature led the Colonies, the individual states, and Congress to prescribe for many articles not only the capacity, but the size and form of containers. [Footnote 3]

[Page 296 U.S. 176, 183]

sideration. That statute deals solely with hampers, round stave, and splint baskets of capacity not less than one-eighth bushel. The Standard Baskets and Containers Act of August 31, 1916, c. 426, 39 Stat. 673 (15 USCA 251 et seq.), which in section 2 (15 USCA 252) deals with containers for small fruits and vegetables, prescribes merely the capacity of the containers. It fixes the cubic contents for dry half-pint, pint, and quart. It makes no reference to the dimensions or form of the container; and has left to the individual states the adoption of the standards in these respects if deemed necessary. Compare Savage v. Jones, 225 U.S. 501, 32 S.Ct. 715; Merchants' Exchange v. Missouri, 248 U.S. 365, 368, 39 S.Ct. 114; Mintz v. Baldwin, 289 U.S. 346, 350, 351 S., 53 S.Ct. 611

Third. The charge that the order is void because it grants a monopoly to manufacturers of hallocks is unfounded. The plaintiff, and all others, are free to engage in the business, which, so far as appears, is not protected by patent or trade-mark and does not rest upon trade secrets. The business is not closely controlled; nor is it peculiar to Oregon. In 1933, at least 25 concerns were engaged in the United States in manufacturing hallocks. Less than one-fourth of them were located in Oregon and Washington. [Footnote 4] Plaintiff asserts that the order excludes it from the Oregon trade since its plant cannot be equipped to manufacture hallocks except at a prohibitive cost; and that the spruce logs, the veneer of which is customarily used in making hallocks, is not obtainable except in the Pacific Northwest. Obviously these allegations afford no support to the charge of monopoly; among other reasons, because the order does not prescribe the material from which hallocks may be made. They are

[Page 296 U.S. 176, 186]

regulation is by an order of an administrative body, that body acts under a delegation from the Legislature. The question of law may, of course, always be raised whether the Legislature had power to delegate the authority exercised. Compare Panama Refining Co. v. Ryan, 293 U.S. 388, 55 S.Ct. 241, and A.L.A. Schechter Poultry Corporation v. United States, , 55 S.Ct. 837, 97 A.L.R. 947. But where the regulation is within the scope of authority legally delegated, the presumption of the existence of facts justifying its specific exercise attaches alike to statutes, to municipal ordinances, and to orders of administrative bodies. Compare AEtna Insurance Co. v. Hyde, 275 U.S. 440, 447, 48 S.Ct. 174. Here there is added reason for applying the presumption of validity; for the regulation now challenged was adopted after notice and public hearing as the statute required. It is contended that the order is void because the administrative body made no special findings of fact. But the statute did not require special findings; doubtless because the regulation authorized was general legislation, not an administrative order in the nature of a judgment directed against an individual concern. Compare Wichita Railroad & Light Co. v. Public Utilities Commission, 260 U.S. 48, 58, 59 S., 43 S.Ct. 51; Mahler v. Eby, 264 U.S. 32, 44, 44 S.Ct. 283; Southern R. Co. v. Virginia, 290 U.S. 190, 193, 194 S., 54 S.Ct. 148.

Seventh. It is argued that under the Constitution of Oregon, its Legislature was without power to delegate the authority to prescribe standard containers; citing Van Winkle v. Fred Meyer, Inc. (Or.) 49 P.(2d) 1140. This objection (which involves solely a question of state law) was not made below, was not discussed by the lower court, and is not included in the assignment of errors filed in this court. We have no occasion to consider it. See Rule 27(4), 28 U.S.C.A. following section 354; Blair v. Oesterlein Co., 275 U.S. 220, 225, 48 S.Ct. 87; Bradley v. Public Utilities Commission, 289 U.S. 92, 96, 97 S., 53 S.Ct. 577, 85 A.L.R. 1131.

Affirmed. Footnotes

Footnote 1 The same provision concerning containers for strawberries is incorporated also in an order dated June 1, 1933; and the prayer for an injunction extends likewise to that order.

Footnote 2 See 'Containers used in Shipping Fruits and Vegetables,' U.S. Department of Agriculture, Farmers' Bulletin No. 1579 (1934) pp. 7-9.

Footnote 3 See Turner v. Maryland, , notes, pages 51-54, 2 S.Ct. 44, 55-58.

Footnote 4 See 'Production and Carry-over of Fruit and Vegetable Containers for the Year 1933,' U.S. Department of Agriculture, Bureau of Agricultural Economics, pp. 3, 7, 16, 19, 22; ibid. for 1934, pp. 2, 6. Compare U.S. Department of Agriculture, Farmers' Bulletin No. 1579, pp. 7-9.