OREGON

Code Ann. (Supp., 1935), amended by L. 1935, c. 67 and c. 69, and by L. 1939, C. 197 38

Section 41-2002 provides for the appointment by the Governor of a milk control board of three members.

Section 41-2003 provides that the board has power to supervise and regulate the milk industry of the State, and to adopt and enforce all rules, regulations and orders necessary to carry out the provisions of the act.

Section 41-2015 provides that the board may make all necessary rules, regulations and orders.

Section 41-2012 provides that the board shall ascertain, as far as feasible, what prices for milk in the several localities and markets of the State will best protect the milk industry and insure a sufficient quantity of pure and wholesome milk in the public interest. The board shall take into consideration all conditions affecting the milk industry, including the price necessary to produce a reasonable return to the producer and to the milk dealer.

After making such investigation the board shall, by order, fix the minimum wholesale and retail prices to be charged for milk handled and sold within the State for human consumption in fluid form, and including the following classes: (a) By producers or associations of producers to milk dealers; (b) by milk dealers to stores for consumption on the premises, or for resale to consumers or to others; (c) by stores to consumers or to others except for consumption on the premises where sold; (d) by producer-distributor and distributor for deliveries to homes of consumers: Provided, That based upon differences in cost of said various services, if any, the board, upon facts found by it, may establish differentials in prices between house-tohouse sales by dealers, house-to-house deliveries by stores, and sales on credit and over-the-counter sales by stores for cash.

Where by statute, regulation adopted thereunder, or municipal ordinance, various grades of milk are specified, the board shall fix the minimum price as aforesaid, applicable to each grade. Orders fixing minimum prices may vary in different markets, and each shall designate the market to which it is applicable.

In fixing minimum prices and the standards or grades to which they apply the board shall in each market area and production area take into consideration costs of production and distribution and the market conditions in the particular sales and production area to be affected by the order applying to such sales and production area.

Act held constitutional, Savage v. Martin, 28 Adv. Sh. 917, 91 Pac. (2d) 273 (1939).

In those sales areas or production areas supplying the same where the dealers do not have adequate facilities for the blending or standardizing of whole milk, sold in its form as whole milk and where said blending or standardizing is not required under applicable ordinances of the city or town in the sales area or laws of the State of Oregon, the minimum prices for milk sold in the form of whole milk shall not be graduated according to butterfat content. After the board shall have fixed the prices to be paid to the producer or association, and the prices at which milk shall be sold as provided in the preceding paragraph hereof, it shall be unlawful to buy or offer to buy, sell, or offer to sell, any milk at prices other than the prices fixed by order of the board; and any method, device or transaction whereby any person buys or offers to buy, sells or offers to sell at a price less than that fixed by order of the board applicable to the grade of milk involved in the transaction occurred, whether by discount, rebate, free service, advertising allowance, gift, or otherwise, hereby is declared unlawful.

The board may on its own motion or upon application, from time to time, alter, revise, or amend any order theretofore made with respect to prices to be charged or paid for milk, designating and defining the limits of markets, milksheds, or upon any other matter within the jurisdiction of the board. After making any such investigation and before making, revising, and amending any such order, the board shall give notice to interested parties and the public generally of the time and place of hearing thereon, in such newspaper or newspapers as in the judgment of the board shall afford reasonable notice and publicity; provided, however, that before any order is made denying an application for a license or revoking a license which has been issued, the board shall fix the time and place for hearing of such matter and give notice to the applicant or licensee, as the case may be, of the time and place so fixed, with reasonable notice to such applicant or licensee to be heard and present evidence. Such notice shall be in writing and may be served either personally or by mail at least five days in advance of the time set for said hearing. Any hearing held prior to the refusal to grant any license or to the revocation of any license already issued, shall be held at some convenient place selected by the board or its examiner in the county where is located the residence or principal place of business of the applicant or licensee unless such privilege is waived by the applicant or licensee, in which event the hearing may be held at the election of the board or its examiner either in such county or in the county of the principal office of the board.

Section 41-2013 provides that it is recognized that, due to seasonal fluctuations in milk production, and other causes, there occurs in cer

tain markets in the state a surplus of fluid milk suitable for human consumption, under the laws and ordinances in force in such markets, in excess of the quantities sold as fluid milk for human consumption, and that such surplus varies from day to day and from season to season; that such surpluses must be sold for factory or other purposes at prices usually lower than would be received if sold in the fluid-milk trade; and that to stabilize and promote the milk industry it is necessary that uniform prices be paid to all producers who, either directly or through any corporation or cooperative association, furnish milk to any specified market.

To accomplish these necessary purposes the board shall have power (a) to define and limit the geographical area from which the fluid milk trade shall be produced for any given market or sales area as fixed and designated by the board: Provided, That producers, producer-distributors or their successors now shipping to any market may continue so to do until they voluntarily discontinue shipping to designated milkshed; and (b) under uniform rules and regulations to determine what proportion of the milk produced by each producer shall be considered as marketed as fluid milk for human consumption and what proportion so produced shall be considered as surplus; and (c) to provide for the pooling and averaging of all returns from the sales of fluid milk produced in the geographical area from which fluid milk shall be produced for a designated market or sales area, and the payment to all producers of a uniform pool price for all milk so produced, subject to such equitable adjustments as shall be made by the board and subject to such rules and regulations as may be imposed for the control of surplus production by the establishment of basic averages or other methods; and (d) to appoint, set up, select, and employ agencies for the handling and disposal of the surplus fluid milk, keep, or supervise the keeping of all accounts and records necessary in connection with such transactions, and receive and disburse the funds received in connection therewith; and (e) to make reasonable deductions from the funds so received to pay all necessary expenses incidental to the performance of the duties and the execution of the powers herein conferred; and (f) make any other and further order, rule, or regulation and exercise any such further power that may be deemed necessary by the board for the full accomplishment of the aforesaid objects.39

Section 41-2006 provides that the board may decline to grant the license, or may suspend or revoke a license upon due notice and opportunity to the applicant to be heard when it appears that a milk dealer has violated any of the provisions of this act.

Surplus control orders promulgated by board were construed and held valid in Savage v. Martin, supra (page 434).

Section 41-2008 provides that any order of the board refusing, suspending, or revoking a license may be reviewed by a circuit court. Section 41-2017 provides that any person violating any provision of this act shall be guilty of a misdemeanor, punishable by fine of not less than $25 nor more than $1,000 or by imprisonment in the county jail not less than 30 days nor more than 90 days, or both fine and imprisonment.

PENNSYLVANIA

Stat. Ann. (Purdon, Supp., 1938), tit. 31 “

Milk Control

Section 700j-201 provides for a milk control commission of three members, to be appointed by the Governor with consent of two-thirds of the members of the senate.

Section 700j-301 provides that the commission is the instrumentality for the purpose of administering the act and is vested with power to supervise, investigate, and regulate the entire industry of the Commonwealth.

Section 700j-404 provides that the commission may decline to grant a license or may suspend, revoke, or refuse to transfer a license or may prohibit a dealer exempted from the license requirements from continuing to operate if a dealer has violated any of the provisions of this act or any rules, regulations, or orders of the commission or any stipulation between the dealer and the commission.

Section 700j-801 provides that the commission shall ascertain, after a hearing in which all interested parties shall be given reasonable opportunity to be heard, the logical and reasonable milk marketing areas within the Commonwealth, shall describe the territorial extent thereof, shall designate such areas by name or number, and shall ascertain and maintain such prices for milk in the respective milk marketing areas as will be most beneficial to the public interest, best protest the milk industry of the Commonwealth, and insure a sufficient quantity of pure and wholesome milk to inhabitants of the Commonwealth, having special regard to the health and welfare of children residing therein.

The commission shall base all prices upon all conditions affecting the milk industry in each milk marketing area, including the amount necessary to yield a reasonable return to the producer and to the milk dealer.

"The milk control act was held constitutional. Calteryahn Sanitary Dairy v. Milk Control Commission, Keystone Dairy Co. v. Same, 332 Pa. 15, 1 Atl. (2d) 775 (1938); Commonwealth v. Ortween, 132 Pa. Super. 166, 200 Atl. 859 (1938); Prior act, Rohrer v. Milk Control Board, 322 Pa. 257, 186 Atl. 336 (1936).

The commission shall file at its office, with each order issued, a general statement in writing of the findings of fact in support of, and the reasons for, such order.

The commission may, upon its own motion or upon application in writing, from time to time, alter, revise, or amend an official order defining milk marketing areas or fixing prices to be charged or paid for milk. Before making, revising, or amending any order defining milk marketing areas or fixing prices to be charged or paid for milk, the commission shall hold a hearing, after giving reasonable notice thereof to interested persons, of whom the commission has notice, and, in the case of any order affecting the public, after giving reasonable notice thereof to the public in such newspaper or newspapers as, in the judgment of the commission, shall afford sufficient notice and publicity: Provided, however, That upon application in writing from a person aggrieved by an order of the commission hereunder, filed within fifteen (15) days after the issuance of the order complained of, or upon its own motion, the commission may, within twenty (20) days after the effective date of such order, issue an order revising or amending such order without a further hearing, if such revision or amendment is based on the record of the hearing held prior to the issuance of such order.

Every order made pursuant to this article, and any revision or amendment thereof, in which the commission fixes or changes the price of milk to producers or to consumers, or both, shall be subject to the approval of the Governor.

Section 700j-802 provides that the commission shall fix, by official order (except as hereinafter provided in this section), the minimum wholesale and retail prices, and may fix, by official order, the maximum wholesale and retail prices to be charged for milk sold within any milk marketing area of the Commonwealth, wheresoever produced, including milk sold by:

(1) Milk dealers to other milk dealers;

(2) Milk dealers to consumers;

(3) Milk dealers to stores, either for consumption on the premises or resale to consumers;

(4) Stores to consumers, except for consumption on the premises where sold.

Nothing herein contained shall be construed to empower the commission to fix the price at which milk may be sold by any milk dealer or producer to consumers for consumption on the premises of such milk dealer or producer.

The fixing of minimum wholesale or retail prices for skimmed milk, condensed or concentrated whole or skimmed milk, bulk cream