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Panama Refining Co. v. Ryan

Panama Refining Co. v. Ryan

Supreme Court of the United States

December 10, 11, 1934, Argued ; January 7, 1935, Decided

Nos. 135, 260

Opinion

 [*405]   [**242]   [***451]  MR. CHIEF JUSTICE HUGHES delivered the opinion [****31]  of the Court.

On July 11, 1933, the President, by Executive Order, prohibited "the transportation in interstate and foreign commerce of petroleum and the products thereof produced or withdrawn from storage in excess of the amount permitted to be produced or withdrawn from storage by any State law or valid regulation or order prescribed thereunder, by any board, commission, officer, or other duly  [*406]  authorized agency of a State." 2 This action was based on § 9 (c) of Title I of the National Industrial Recovery Act of June 16, 1933, 48 Stat. 195, 200, 15 U. S. C. Tit. I, § 709 (c). That section provides:

"Sec. 9 . . .

"(c) ] The President is authorized to prohibit the transportation in interstate and foreign commerce of petroleum and the products thereof produced or withdrawn from storage in excess of the amount permitted to be produced or withdrawn from storage by any state law or valid regulation or order prescribed thereunder, by any board, commission, officer, or other duly authorized agency of a State. Any violation of any order of the President issued under the provisions [****32]  of this subsection shall be punishable by fine of not to exceed $ 1,000, or imprisonment for not to exceed six months, or both."

 [****33]  On July 14, 1933, the President, by Executive Order, authorized the Secretary of the Interior to exercise all the powers vested in the President "for the purpose of enforcing  [*407]  Section 9 (c) of said act and said order" of July 11, 1933, "including full authority to designate and appoint such agents and to set up such boards and agencies as he may see  [***452]  fit, and to promulgate such rules and regulations as he may deem necessary." 3 That order was made under § 10 (a) of the National Industrial Recovery Act, 48 Stat. 200, 15 U. S. C. 710 (a), authorizing the President "to prescribe such rules and regulations  [**243]  as may be necessary to carry out the purposes" of Title I of the National Industrial Recovery Act and providing that "any violation of any such rule or regulation shall be punishable by fine of not to exceed $ 500, or imprisonment for not to exceed six months, or both."

 [****34]  On July 15, 1933, the Secretary of the Interior issued regulations to carry out the President's orders of July 11 and 14, 1933. These regulations were amended by orders  [*408]  of July 25, 1933, and August 21, 1933, prior to the commencement of these suits. Regulation IV provided, in substance, that every producer of petroleum should file a monthly statement under oath, beginning August 15, 1933, with the Division of Investigations of the Department of the Interior, giving information with respect to the residence and post-office address of the producer, the location of his producing properties and wells, the allowable production as prescribed by state authority, the amount of daily production, all deliveries of petroleum, and declaring that no part of the petroleum or products produced and shipped had been produced or withdrawn from storage in excess of the amount permitted by state authority. Regulation V required every purchaser, shipper (other than a producer), and refiner of petroleum, [****35]  including processors, similarly to file a monthly statement under oath, giving information as to residence and post-office address, the place and date of receipt, the parties from whom and the amount of petroleum received and the amount held in storage, the disposition of the petroleum, particulars as to deliveries, and declaring, to the best of the affiant's information and belief, that none of the petroleum so handled had been produced or withdrawn from storage in excess of that allowed by state authority. ] Regulation VII provided that all persons embraced within the terms of § 9 (c) of the Act, and the Executive Orders and regulations issued thereunder, should keep "available for inspection by the Division of Investigations of the Department of the Interior adequate books and records of all transactions involving the production and transportation of petroleum and the products thereof."

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293 U.S. 388 *; 55 S. Ct. 241 **; 79 L. Ed. 446 ***; 1935 U.S. LEXIS 251 ****; 1 Ohio Op. 389

PANAMA REFINING CO. ET AL. v. RYAN ET AL.; AMAZON PETROLEUM CORP. ET AL. v. RYAN ET AL.

Prior History:  [****1]   CERTIORARI TO THE CIRCUIT COURT OF APPEALS FOR THE FIFTH CIRCUIT.

CERTIORARI 1 was granted in these two cases to review decrees of the court below which reversed decrees of the District Court enjoining federal officers in Texas from enforcing certain executive orders and regulations. 5 F.Supp. 639. Both bills challenged the constitutionality of § 9 (c) of the National Industrial Recovery Act and of orders made under it by the President and of regulations made under the President's orders by the Secretary of the Interior. In one of the cases, No. 260, part of a Petroleum Code was attacked and defended in ignorance of the fact that it had been dropped when amendments of the Code were promulgated before the beginning of the suit. The bill in that case also challenged legislation and orders of the State curtailing the production of oil, and joined the State Railroad Commission, its members and other state officials as defendants; but this part of the case was severed and decided adversely to the plaintiffs by a three-judge court. See 5 F.Supp. 633, 634, 639. A detailed statement of both cases will be found in the opinion.

 [****2]  

Disposition:  71 F.2d 1, 8, reversed.

CORE TERMS

regulations, delegation, transportation, petroleum, conditions, oil, executive order, legislative power, Industrial, prescribed, provisions, ascertain, producing, declare, authorizations, circumstances, limitations, conferred, Recovery Act, products, relates, storage, orders, quotas, proclamation, withdrawn, unfair, interstate and foreign commerce, declared policy, Commerce

Transportation Law, Interstate Commerce, Federal Powers, Antitrust & Trade Law, Regulated Industries, Energy & Utilities, General Overview, Administrative Law, Separation of Powers, Executive Controls, Governments, Federal Government, US Congress, Constitutional Controls, Constitutional Law, Separation of Powers, Congressional Duties & Powers, Necessary & Proper Clause, Legislation, Enactment, Agency Rulemaking, Formal Rulemaking, Legislative Controls, Implicit Delegation of Authority