Supreme Court of the United States

Merchants Exchange of St. Louis v. Missouri Ex Rel. Barker

1919 U.S. LEXIS 2322 · 248 U.S. 365 · 39 S. Ct. 114 · 63 L. Ed. 300

January 13, 1919 · Docket 116

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Headnotes

Generated summaries
  1. Headnote 1

    Missouri’s § 63 prohibits anyone other than a duly authorized state weigher from issuing weight certificates or charging for weighing grain at public warehouses. The Court held that this limitation serves to prevent fraud and to promote uniform commercial transactions, and therefore is a permissible exercise of police power.

  2. Headnote 2

    The Court applied the Fourteenth Amendment’s equal‑protection clause, finding that the statute’s distinction between state‑appointed weighers and others is rationally related to the goal of preventing deceptive weighing practices, satisfying rational‑basis review.

  3. Headnote 3

    The Court held that requiring grain received or discharged from public warehouses to be weighed only by state‑appointed weighers does not place an undue burden on interstate commerce and therefore does not violate the Commerce Clause.

  4. Headnote 4

    The opinion noted that the Grain Standards Act addresses only quality standards and contains no provisions on weighing, and that congressional intent was cooperation with state officials, so Missouri’s weighing law remains effective.

  5. Headnote 5

    The Missouri Supreme Court convicted Merchants Exchange for violating § 63, ordered it to stop its weighing operations and to pay costs, and the U.S. Supreme Court affirmed that judgment as proper given the statute’s constitutionality.

  6. Headnote 6

    The Missouri statute aims to prevent fraud and promote uniform commercial transactions by requiring only state‑appointed weighers to certify weight, a valid exercise of police power when the rule is reasonable.

  7. Headnote 7

    The statute’s limitation is not a denial of liberty or property; it serves the legitimate purpose of fraud prevention and therefore passes rational‑basis review.

  8. Headnote 8

    The Missouri law imposes only a local procedural requirement and does not impede the flow of grain across state lines, satisfying the balancing test for permissible state regulation.

  9. Headnote 9

    Federal legislation limited to grain quality leaves the field of inspection and weighing to the states; therefore, the Missouri statute remains effective and is not in conflict with the Grain Standards Act.

  10. Headnote 10

    Missouri’s Grain Inspection and Weighing Act requires grain received into or discharged from public warehouses to be weighed only by state‑appointed weighers to protect commercial transactions from deception.

  11. Headnote 11

    Section 63 of the Missouri act, which bars private weighers, is upheld because it is aimed at preventing fraud in weights and measures, a legitimate police‑power objective.

  12. Headnote 12

    The Missouri statute requiring state weighers does not unduly burden the flow of interstate grain and therefore does not violate the Commerce Clause.

  13. Headnote 13

    The United States Grain Standards Act deals solely with grain quality and expressly intends to cooperate with, not replace, state inspection and weighing laws, leaving Missouri’s weighing provisions intact.

  14. Headnote 14

    The Missouri Supreme Court’s judgment affirming the conviction of Merchants Exchange and ordering it to cease weighing grain and to pay costs was proper because the underlying statute was constitutional.

Opinion

Mr. Justice Brandéis

delivered the opinion of the court.

A statute of Missouri relating to the inspection and weighing of grain, approved March 20, 1913 (Laws, Missouri, 1913, pp. 354-373), and amended March 23, 1915 (Laws, Missouri, 1915, p. 302), declares that in cities of more than 75,000 inhabitants all buildings used for the storage or transferring of grain of different owners, for a compensation, shall be deemed public warehouses; and, by § 63 (p. 372) thereof, prohibits under severe penalties “any person, corporation or association other than a duly authorized and bonded state weigher to issue any weight certificate . ‘ . . [for any] grain weighed at any warehouse or elevator in this state where duly appointed and qualified state weighers are stationed ... , or to make any charge for such weighing, ... or weight certificates. . . .”

In June, 1915, an original proceeding in the nature of quo warranto was brought under this statute at the relation of the Attorney General in the Supreme Court of the State against the Merchants Exchange, a Missouri corporation with the usual powers of a board of trade. See House v. Mayes, 219 U. S. 270; Board of Trade v. Christie Grain & Stock Co., 198 U. S. 236. The information stated that St. Louis is a city of more than 75,000 inhabitants; that public weighers of grain are maintained there at all public warehouses and elevators in'compliance"’with the act; and that the respondent in violation thereof and in abuse of its corporate franchise maintains a bureau for weighing grain, grants weight certificates, and makes charges therefor. The prayer, is that respondent be adjudged guilty of these practices and that a fine be imposed. The return admitted substantially the facts stated in the information but alleged that the services were rendered only at the request of members; that the weighing by its bureau in addition to that of the public weighers added to the general security, thus benefiting farmer, dealer, and consumer; that similar weighing bureaus were maintained by the boards of trade at competing grain markets; and that the statute, in prohibiting the practice, deprived its members of liberty and property and of equal protection of the laws in violation of the Fourteenth Amendment. The return also set forth that the grain weighed by its bureau was in large part shipped into or out of the' State; that it is commercially necessary as a part of interstate transit to pass grain through an elevator where it is weighed, and the issue of certificates of weight is essential; and that the provisions of the Missouri act therefore violated the commerce clause of the Federal Constitution. Upon a demurrer to the return, the full court found the respondent guilty and ordered that it be ousted of the usurped power of weighing grain received into or discharged from public warehouses and elevators and of making charges therefor, and of issuing weight certificates and making charges therefor; and that the respondent pay costs. 269 Missouri, 346. The case comes here on writ of error. .

First. Section 63 of the act does not violate the Fourteenth Amendment. As the state court has pointed out, the statute does not prohibit owners of grain from weighing it before it is sent to a public warehouse or after it is removed therefrom. -But the issue of a' private weigher’s certificate in addition to the certificate of the public weigher might lead to embarrassment, or confusion or prove a means of deception. The regulation of weights and measures with a view to preventing fraud and facilitating commercial transactions is'an exercise of the police power. To require that goods received in or discharged from public warehouses shall be weighed by public weighers and that no one else shall issue certificates of or make charges for weighing under those circumstances is not an unreasonable or arbitrary exercise of the discretion vested in the legislature. Compare House v. Mayes, supra; Brodnax v. Missouri, 219 U. S. 285. Nor can we say that to limit the application of the provision to grain and hay is an arbitrary discrimination against dealers in those articles. The fact that respondent is a corporation does not lessen the scope of the State’s police power. We have no occasion to consider whether it is thereby enlarged.

Second. Section 63 does not violate the commerce clause of the Constitution. The contention that it does was rested below solely on the ground that the prohibition, as applied to grain received from or shipped t& points without the State* burdens interstate commerce. It clearly does not. Pittsburg & Southern Coal Co. v. Louisiana, 156 U. S. 590; W. W. Cargill Co. v. Minnesota, 180 U. S. 452. But the additional contention is made here that all state regulation of the weighing of grain was superseded by the United States Grain Standards Act, approved August 11, 1916 (39 Stat. 482). That act (which is Part B of chapter 313) relates exclusively to the establishment by the Secretary of Agriculture of standards of quality and condition. It does not in any way refer to the weighing of grain. And Part B of chapter 313, by § 7 (p. 484), like Part C, the United States Warehouse Act (which does contain some reference to weighing), by § 29 (p. 490), makes manifest the purpose of Congress not to supersede state laws for the inspection and weighing of grain, but to cooperate with state officials charged with the enforcement of such state laws. The Missouri act is not superseded by or in conflict with the federal legislation.

The judgment of the Supreme Court of Missouri is therefore

Affirmed.