Charles Evans Hughes

“ At auction sales speculators to a limited extent, as compared with buyers, purchase tobacco for a later sale. There is strenuous and expensive competition between warehousemen in securing tobacco from growers to be handled and sold, but in the sale of tobacco there is no competition except such as exists between the respective buyers and speculators at the auction sales, and the bids of the warehousemen themselves. ”

“ The short tobacco season causes growers to rush tobacco to the market and does not give them a fair opportunity 'to properly grade, store, bundle, and orderly market their tobacco.' The short season is in large part occasioned by the efforts of the manufacturers to transfer their buyers to the North Carolina belts, in some of which the selling seasons begin early in September, and the efforts of the warehousemen to dispose of the tobacco in Georgia so that they and their auctioneers and other skilled employees may proceed to the later and larger seasons of North Carolina and other states. ”

“ After the tobacco has been cured and is ready for the market, the grower grades it as best he can and the resulting 'piles' of loose leaves are placed in sheets which are then tied and the tobacco is so transported to the selected warehouse for sale. Auction sales are held daily during five days of the week, and in any particular warehouse as often as sufficient tobacco accumulates. It is essential that there be present the warehousman, an auctioneer, and other skilled help, and one set of buyers. ”

“ The facts found by the District Court with respect to the tobacco industry in Georgia and the nature of the transactions at the warehouses are not in dispute. It appears that this industry is relatively new, beginning in 1917, but by the year 1925 it was becoming well established. The type of tobacco grown in Georgia is the 'bright leaf' which is almost exclusively used in the manufacture of cigarettes. This variety is grown extensively in North Carolina, to a much less extent in South Carolina and Georgia, and to some extent in Virginia, Kentucky, and Tennessee. ”

“ We find it unnecessary to pass upon the authority of the Congress to regulate the charges of the warehousemen, for we are of the opinion that, if it be assumed that Congress has that authority, it has not been exercised and in the absence of such exercise the state may impose the regulation in question for the protection of its people.
The federal statute, to which appellants refer, is the 'Tobacco Inspection Act' of August 23, 1935. ”

“ Here, the existence of the industry, highly important to the state, the transactions in the tobacco markets, the necessity of protecting the growers from exorbitant warehouse charges, must be presumed to have been fully known to the members of the Legislature and this presumption cannot be overthrown, as it has been sought to be overthrown, by testimony of individual legislators. ”

“ It was found that the farmer had 'no definite system of grades of his own,' that the private grading systems used by the buyers were kept 'strictly confidential' so that 'without Government standards the farmer has no definite guide for sorting his tobacco,' and that hence 'farmers generally are unable to class their tobacco correctly to meet the trade's demands'. ”

“ The acreage planted by the individual farmer in Georgia is comparatively small, but the aggregate acreage is now not only very considerable but is widely distributed over a large area in the southern portion of the state. ”

“ Appellants contend that the legislative action was taken without investigation and hence must be considered to be arbitrary and beyond the legislative power. There is no principle of constitutional law which nullifies action taken by a legislature, otherwise competent, in the absence of a special investigation. ”

“ If this is not taken or raised by another, the warehouseman generally becomes the purchaser of the tobacco for his own account. If not sold in that fashion, the bidding continues until the sale is announced. The grower or other owner may turn down the sale and in such case he may hold the tobacco for a later sale or remove it. ”

“ The license has reference only to the business of the defendant at its elevator and warehouse. The statute only requires a license in respect of business conducted at an established warehouse in the state between the defendant and the sellers of grain. * * * In no real or substantial sense is such commerce obstructed by the requirement of a license.' See, also, Merchants' Exchange v. ”