Key Facts– A law was passed in New York, establishing a Milk Control Board that could fix milk prices. Someone sold milk at below the set price.
Issue– Is this regulation constitutional?
Result– Regulation affirmed.
Reasoning– Milk is a public necessity, which is why it’s highly regulated in New York. Here, unrestricted competition was perceived as having the possible effect of aggravating existing problems and reducing the stability of the milk market. Thus, this policy might have the effect of promoting the public welfare, and is within the state police power.