UNITED STATES SUPREME COURT DECISIONS ON-LINE

Under § 8c of the Agricultural Marketing Agreement Act of 1937, the Secretary of Agriculture promulgated an order regulating the marketing of milk in the Boston area. As amended in 1941, the order provided for fixing uniform prices to be paid to all producers and required that, in computing such uniform prices, certain amounts should be deducted for special payments to cooperative marketing associations. Claiming that this deduction and these payments to cooperatives unlawfully diverted funds which belonged to producers, certain producers who were not members of any cooperative sued to enjoin the Secretary from carrying out the provisions therefor.

Held: the provisions for such deduction and for such payments to cooperatives are invalid, because they are not authorized by the Act. Pp. 342 U. S. 452-466.

1. These provisions are not specifically authorized by any part of the Act. P. 342 U. S. 458.

2. Nor are they included within the authority granted by § 8c(7)(D), which authorizes provisions

"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."

Pp. 342 U. S. 462-464.

(a) They are not "incidental to" the terms and conditions specified in subsections (5), (6), and (7). Pp. 342 U. S. 462-463.

(b) They are "inconsistent with" § 8c(5)(A), which provides that all handlers shall pay uniform prices for each class of milk, subject to certain adjustments not here pertinent. P. 342 U. S. 463.

(c) They are "inconsistent with" § 8c(5)(B), which requires the payment of uniform prices to all producers for all milk delivered, subject to certain adjustments not here pertinent. Pp. 342 U. S. 463-464. clubjuris

Page 342 U. S. 452

3. Nor are these provisions authorized by § 10(b)(1) directing the Secretary to accord "recognition and encouragement" to cooperative marketing associations. P. 342 U. S. 464.

4. Nor is a different result required by the legislative history or administrative construction. Pp. 342 U. S. 465-466.

87 U.S.App.D.C. 388, 185 F.2d 871, affirmed.

The case is stated in the opinion. The judgment below is affirmed, p. 342 U. S. 466.