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SYLVAN SEAL MILK, INC. v. MILK CONTROL COMMN. OF P

February 20, 1967

SYLVAN SEAL MILK, INC.
v.
MILK CONTROL COMMISSION OF the COMMONWEALTH OF PENNSYLVANIA



Per Curiam

The plaintiff, a processor of milk and other dairy products, has instituted this action to enjoin the defendant from the operation or enforcement of any minimum prices with respect to the sale of milk by the plaintiff to stores and subdealers on the ground that continued operation or enforcement of such prices is causing the plaintiff irreparable harm and is in violation of the Fourteenth Amendment of the Constitution of the United States.

 Pursuant to 28 U.S.C. §§ 2281 and 2284, a three judge court has been convened. The issue presented at this time is whether or not to grant the plaintiff's motion for a preliminary injunction. After a hearing and argument, the court makes the following:

 FINDINGS OF FACT

 1. The defendant, the Milk Control Commission of the Commonwealth of Pennsylvania ("Commission"), is a state administrative agency created by the Milk Control Law, Act of April 28, 1937, Pa.Stat.Ann. tit. 31 § 700j-101 et seq. and maintains an office in the City of Philadelphia.

 2. The plaintiff, Sylvan Seal Milk, Inc. ("Sylvan Seal") is a Pennsylvania Corporation which has been engaged in the business of processing milk and other dairy products for over thirty years in the City of Philadelphia.

 3. Sylvan Seal's sales have been exclusively to stores and subdealers, and primarily in half-gallon containers.

 4. The Commission under § 802 of the Milk Control Law, Pa.Stat.Ann. tit. 31 § 700j-802, fixes minimum prices for sales to stores and subdealers in the various milk marketing areas established by the Commission throughout the Commonwealth of Pennsylvania.

 5. In the Philadelphia milk marketing area, officially designated as Area No. 1 and 1A, the minimum price into the store for a half-gallon of standard milk is 51 1/2 cents, but a quantity discount of up to 6 cents per half-gallon is authorized. See Milk Control Commission official General Orders No. A-632 and A-633 effective March 20, 1964, as amended by Official General Orders No. A-678 and A-679, effective July 7, 1966.

 6. The full discount price into-the-store of 45 1/2 cents per half-gallon is authorized for 300 or more half-gallons per single delivery of standard milk. See Milk Control Commission Official General Orders No. A-632 and A-633 and A-678 and A-679 supra.

 7. Sylvan Seal can sell standard milk at a fair profit at its platform for substantially less than the above fully discounted price of 45 1/2 cents per half-gallon now permitted by the Commission.

 8. About 45% of all standard milk sold in the Philadelphia area to the consumer is sold in stores while the remaining 55% is sold by home deliveries.

 9. Four supermarket chains, Acme, A & P, Food Fair, and Penn Fruit, in the approximate proportions of 23.8, 19.8, 11.8 and 8.8, sell, in the aggregate, about 65% of all milk sold in stores in the Philadelphia area or about 30% of all standard milk sold to the consumer.

 10. Acme, Food Fair, and Penn Fruit are acquiring their milk requirements for sale in their Pennsylvania stores, outside of the Commonwealth of Pennsylvania, namely in the states of New Jersey and Delaware at a cost of less than 41 1/2 cents per ...


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