delivered the opinion of the Court.
On May 6, 1924, the President of the United States determined and proclaimed that an increase in the rate of duty on sodium nitrite was necessary to equalize the differences in the cost of production in the United States and the principal competing country, Norway, and that to that end the duty should be increased from 3 cents per pound to 4% cents per pound. The proclamation was made after an investigation and report by the United States Tariff Commission under the flexible tariff provisions of the Tariff Act of 1922. Tariff Act of September 21, 1922, c. 356, § 315, 42 Stat. 858, 941-943. After the new rate of duty had thus gone into effect, there were new importations of sodium nitrite at the port of New York. The duty was assessed by the customs officers in accordance with the proclamation; and protests were filed by the petitioner, which is the exclusive agent within the United States of the leading exporter'to this country of the commodity affected. The protests were-made upon the ground that the Tariff Commission in investigating the costs of production in the United States and Norway had not given the petitioner the hearing prescribed by the statute, and that all that followed was of no validity. A judgment of the Customs Court overruling the protests (T. D. 44, 824,
In October, 1922, the American Nitrogen Products Company submitted to the Tariff Commission a request for a report and recommendation to the President that the duty on sodium nitrite be increased fifty per cent. It
In the interval, there were other happenings that bear on the merits of the controversy. On September 16, 1923, the Commission- made public a report or summary of its
On September 26, the hearing went on again. Counsel for the importers submitted copies of cablegrams exchanged between his client and its Norwegian principal. The cablegram from the client informed the principal of the estimate of costs of production in Norway contained in the summary prepared by the Commission. The answering cablegram stated that the estimate was far too low, but confirmed the report of the investigators that information had been refused on the ground that the costs were confidential. That part of the cablegram has been quoted already. The chairman, responding to a request for an adjournment of thirty days,.made inquiry of counsel whether definite figures would be obtained from Nor
At the adjourned hearing on October 6, the Commission announced its ruling with reference to these requests, notice of the ruling having been previously conveyed to counsel for the importer. The decision was in substance that data gatheredby the Commission with the understanding that they were to be' treated as confidential would be withheld; that the investigators working for the Commission would not be required to produce such data or to be cross-examined about them; but that as to all these subjects of inquiry the importer would be permitted to offer any evidence that it-was able to present, and to'be heard in oral and written' argument with reference thereto.
On December 12, 1923, before the Commission- had reported to the President, the petitioner applied to' the Supreme Court of the District of Columbia for a writ of mandamus directing the Commission to disclose the information sought. The petition was dismissed, the court ruling that the action of the Commission had been in conformity with law. An appeal to the Court of Appeals followed, but while it was pending the Commission made a report to the President, and upon the basis of that report the President issued his proclamation for an increase of the duty. The Court of Appeals expressed an opinion, not called for by its judgment, that the information should have been given. It decided, however, that the petition had become moot by force of the action of the President,
The Tariff Act of 1922 (c. 356, § 315; 42 Stat. 858, 941) gives authority to the President to increase or decrease the rates of duty specified in the act if he finds upon investigation that increase or decrease is necessary in order to equalize the differences in the cost of production in the United States and elsewhere. It provides, § 315 (c), that in ascertaining these differences,
“
the President, in so far as-he finds it practicable, shall take into consideration (1) the differences in conditions in production, including wages, costs of material, and other items in costs of production of such or similar articles in the United States and in competing foreign countries; (2) the differences in the wholesale selling prices of domestic and foreign articles in the principal markets-of the United States; (3)
The decision of this case hinges upon our answer to the question whether the petitioner has been “ heard ” in accordance with the statute. Does the requirement of a hearing mean that every producer or importer affected by a tariff may explore at will the data collected by the Commission as to the capital, the wages, the cost of material and manufacture, in the business of any other person similarly affected, and may cross-examine investigators and competitors upon the data thus laid bare? If something less than this is exacted, is there still a minimum of disclosure without which the purpose of the hearing will be thwarted altogether, and was this minimum attained by what was done by the Commission here?
1. History, analogy and administrative practice point with sureness to the conclusion that letters of marque have not been issued to every producer or importer affected by a tariff to capture knowledge of the business of every rival so affected in all the intimate details uncovered to the investigating officers.
The appeal to history is a threefold one: to the history of the process of tariff-making by Congress and congres
The process of tariff-making by Congress and congressional committees is not different in essentials from that for legislation generally. If the bill has gone to a committee, the practice has been general to give the privilege of a hearing to business men and others affected by its provisions. The hearing is not one that may be demanded ' as of right. A change of the tariff laws like a change of any other statute is not subject to impeachment on the' score of invalidity though notice to those affected has been omitted altogether. Luce, Legislative Procedure, p. 143, cf.
Buttfield
v.
Stranahan,
We have said that the inference is a strong one, yet, of course, it is far from conclusive and might even be inadequate if it were considered by itself. The history of the statute as it passed through the two Houses of the Congress supplies confirmatory evidence. The bill in its early stages empowered the President to change tariff rates, but said nothing whatever as to the manner in which the preliminary investigation should be made. 62 Cong. Rec., pt. 7, p: 7108, pt. 11, pp. 11,155, 11,156, 11,193. A letter from President Harding to the chairman of the Finance Committee of the Senate recommended that Congress name the Tariff Commission as the source of information and recommendation upon which the President might proclaim a change. 62 Cong. Rec., pt. 11, p. 11,211. Several amendments embodying this recommendation were proposed in each chamber of the .Congress. Nowhere in the long debates that followed is there a suggestion by any one that witnesses or others appearing in the
If Congress was unwilling to prescribe a requirement that, the
“
hearings shall be public,” or that the President shall publish the testimony when announcing, his decision,
Our discussion of the significance of history as an aid to the construetiomof the statute.will be inadequate if it is confined to the history of hearings by congressional committees and to the amendments of the bill in its 'progress through the Houses. There is need to consider also the history of this Commission. before the Act of 1922, and that of earlier commissions organized for kindred purposes.
The powers of the President under the flexible tariff provisions' of the Act of 1922 differ in degree rather -than in kind from'powers that have long been his. By an act of March .3,1815 (3 Stat. 224), the President was empowered to give effect to a repeal of duties upon imports whenever he was “ satisfied that the discriminating or. countervailing duties ”• of the foreign nation affected,
“
so far as they operate to the -disadvantage of. the United States” had been abolished. See
Field
v.
Clark,
The first statute for the appointment of a commission to deal with the problem of the tariff was enacted in 1882. 22 Stat. 64, c. 145. See F. W. Taussig, Tariff History of the United States, 8th edition, p. 231. The Commission, which was to be an investigating body merely, was established as an- aid to Congress rather than the President; It was to report at the next session of Congress what changes it thought desirable. After the expiration of its life neither President nor Congress received official aid that was more than desultory or occasional till a body styled the Tariff Board was organized by President Taft in 1909. Taussig,
supra,
pp. 405, 481. This board was established under a provision of the Tariff Act of that year, which by § 2 gave the President a choice between two sets of duties, a niaximum and a minimum,. “To secure information to assist the President in the discharge of the duties imposed upon him by this section, and the •
The Tariff Board went down at the énd of 1912 through the failure of the Congress to provide the ways and means. Taussig,
supra,
424, n. 1. No similar body was created till the organization of the present Tariff Commission in 1916. Act of September 8, 1916, cv 463, §§ 700, 702, 703, 706, 707; 39 Stat. 756, 795, 796, 797; 19 U. S. Code, §§ 91, 96, 97, 100, 101. Cf. Taussig,
supra,
p. 481. The function of the Commission as first organized was to investigate the administration and fiscal and industrial effects of the customs laws of this country and other kindred problems, to put at the disposal of the President, the Committee on Ways and Means of the House of Representatives, and the Committee on Finance of the Senate, whenever requested, all information, at its command, and to make such investigations and reports as might be requested by the President or by either of the committees or by either branch of Congress. In aid of these purposes and duties, it was empowered to subpoena witnesses and conduct hearings. The' result of an investigation might be a recommendation to Congress that would lead to the increase or decrease of existing duties. There is nothing to show that in conducting these investigations' it permitted any interested person to inspect its collected data, or to cross-examine others. Ón the other hand, it does-affirmatively appear, set forth at large in its reports to Congress, that it withheld even from that body disclosure of the costs of production of individual producers, confining its reports to averages and symbols that gave no token of identity. Census of Dyes and Coal Tar Chem
The administrative practice before the Act of 1922 might be too desultory and brief to fix the meaning of the statute if it did not find support, and that unmistakable and ample, in administrative practice afterwards. Consistently through all its hearings the Commission has acted upon the principle that the cost of production will not be made known to competitors if the producers are so few that there can be no disclosure of the cost without disclosing the identity of" those producing at that cost. A report by the Coinmission,. submitted by the Government in connection with the briefs, .explains the practice that has been followed and the reasons supporting it. At times the reports by the Commission have shown costs identified by number or by letter. This has been done
The administrative practice developed before the Act of 1922 has thus been continued and confirmed with the
To the external aids that are drawn from histofy and analogy and administrative practice there is to be added another that may be Said to be internal, the aid to be derived from the wording of related sections. In the same tariff act that makes provision in these general words for a hearing by the Commission as a step in.the develop
We are not unmindful of cases in which the word “ hearing ” as applied to administrative proceedings has been thought to have a broader meaning; All depends upon the context. There is no denial of the power of Congress to lay bare to the business rivals of a producer and indeed to the public generally every document in the office of this Commission and all the information collected by its agents. The question for us here is whether there was . the will to go so far. The answer will not be found in definitions of a hearing lifted from their setting and then applied to new conditions. The answer will be found in a consideraton of the ends to be achieved in the particular conditions that were expected or foreseen. To know what they are, there must be recourse to all the aids available’in the process of construction, to history and analogy and practice as well as to the dictionary. Much is made by the petitioner of the procedure of the Interstate^Commerce Commission when regulating the conduct or the charges’of interstate, carriers,’and that of the Public Service Commission's of the states when regulating the
The tokens of intention set down in this opinion have a force in combination that is. denied to any one of them alone. They impel us to the holding that within the meaning of this act the “ hearing ” assured to one affected by a change of duty does not include a privilege to ransack the records of the Commission, and to subject its confidential ágents to an examination as to all that they have learned. There was no thought to revolutionize the practice of investigating bodies generally and of this one in particular. Hearings had once been optional. By the new statute they became mandatory. The form remained the same.
2. Our second question must now be answered: If something less -is due than inspection without limit, is there a minimum of disclosure without which the purpose of a hearing will be thwarted altogether, and was this minimum attained by what was done by the Commission here?
The argument for the petitioner portrays the American producer in the position of a plaintiff tendering an issue to others which they are called upon to meet like defendants in a lawsuit. The picture is misleading, for in truth
The difficulty is not fully met, however, when we hold that a statement of the costs is not required at the beginning' to set the process of investigation going. The question remains whether a statement in some form, even though fragmentary and stripped of detail, may be necessary later An. The persons affected-by the change of duty are entitled to a hearing, and this involves, so it is said, such a modicum of information, such a disclosure of the ' costs, in the form of percentages of the market price or
• The argument thus, stated ignores the historic function of the Commission as the adviser of the President or Congress in the business of legislation, and views it as an arbiter between adverse parties litigant. This is to subject its action to the test of an unreal analogy. If the Commission is under a duty to make disclosure of the costs at all, the origin of the duty and its measure are to be found, we think, in this, that since a hearing is required, there is a command by implication to do whatever may be necessary to' make the hearing fair. A duty so indeterminate must vary in form and shape with all the ehang-' ing circumstances whereby fairness is conditioned. The .appeal is to the sense of justice of administrative officers, clothed by the statute with discretionary powers. Their resolve is not subject to impeachment for unwisdom without more. It must be shown to be arbitrary.
Arbitrary in this instance it certainly was not, and that for several reasons.
(a) The Commission did not withhold disclosure from the petitioner with any sinister purpose to make the hearing ineffective. It was moved by the belief that a way could not be found'of stating the costs without identifying them with the business of .á particular producer. In so Acting it conformed to its own precedents and practice, and to those of such commissions generally. If it' was under a duty to. give a hearing similar to one in court, it was bound to expose, everything, details as well as summaries. There was then no middle ground. If it was under a duty to give the kind of hearing that was fair in all the circumstances, it was free to shape its course within reasonable limits by its own conception of the promptings
(b) The attack upon the ruling of’the Commission as a denial of a fair hearing in a primary and basic sense is weakened even more when consideration is directed to what the petitioner then asked for.
There was no appropriate motion or objection that brought to the notice of the Commission a claim that apart from any details there was a certain minimum of information due to the petitioner which the Commission was withholding. There is no reason to believe that this minimum was then an object of desire, or that it would have been helpful if conceded. The only statement by the petitioner approaching such a notice was a request that it. be furnished with a complete, and not a deleted, copy of
(c) For still another reason the ruling made by the Commission was not an arbitrary refusal to give the kind of hearing that in the circumstances of this particular inquiry was reasonable and fair.
The unwillingness of the petitioner to submit the costs of its Norwegian principal, or to make any effort to submit them, has closed its mouth to the complaint that the refusal to disclose the costs of its American competitor has nullified the report and the proclamation based upon it.
The Norwegian principal, as we have seen, declined to give any information to the agents of the Commission and left them to make up their estimate of the foreign
This attitude of obstruction is not to be ignored in determining whether the information to be imparted to the petitioner Was curtailed by the Commission in any arbi- • trary way. One who seeks equity must do it. -
The question in that aspect becomes this: Does justice require that the costs of a domestic producer shall be made known to an importer who is unwilling to use reasonable effort to make disclosure of the costs of his principal abroad? A mind neither perverse nor arbitrary ip its judgments might think the answer should be “ no.”
xThere is left a final question. The petitioner jnakes the point • that the Commission by its own rules has spread its records open to the inspection' of interestedparjtes, and that there was a violation of those rules by denying an inspection here. The argument may not prevail.
-A
rule of .the Commission does indeed provide as follows: “Parties who have entered appearances shall, prior to the.filing of briefs, have opportunity to examine the report of the Commissioner Qr investigator in charge of the investigation and also the record except such portions as relate to trade secrets and processes.” The evidence, leaves no room for. doubt that the exception stated in this rule has been construed by the. Commission as keeping costs secret for the protection of producers, both foreign and domestic, unless disclosure is so cloaked that the identity of the producers will be effectively disguised.
• The judgment is Affirmed.
Notes
For other instances see-Comer, Legislative Functions of National Administrative Authorities, pp. 64, et seq.
In the investigations by the Tariff Board of 1909, the practice apparently was the same. H. C. Emery, The Tariff Board and Its Work, p. 14, Government Printing Office, 1910.
The Government has exhibited to the court the original reports .as well as a summary of their contents.
There is instruction in the experience of England and Australia.
The. English Import Duties Act of 1932 imposed upon an “ Import Duties Advisory Committee” as well as upon an existing Board of Trade duties of investigation and advice akin to the respondent’s. 28 Chitty’s Annual Statutes, pt. I, pp, 93, 94, 99; 100.
Confidential information is protected as follows (§ 10):
“(1)’ No information relating to any individual business, being information which has béen obtained by the Committee or the Board of Trade by virtue of the provisions of this Act, shall, without the previous consent in writing of the owner for the time being of that .business, be published or disclosed except to members of the Committee or to a Government Department requiring.that information for the purposes of this Act, or to a person authorised by the Committee or by a Government Department and requiring that information for those purposes, or except for the purposes of a prosecution under this Act.”
Australia also Has a Tariff Board. .At first, there was no requirement of public hearings. Tariff Board Act of 192Í. The Board states in its report for the year 1923: “It will readily be understood when'representatives, of industries or manufacturers are called upon •to give definite details, of their costs and manufacture such information must be given confidentially.” Third Annual Report of Australian Tariff Board, June, 1923, p. 23. A requirement of public hearings was imposed by an amendment of the statute. Tariff Board Act of 1924, § 3. It then became necessary that applicants for increases or decreases “present their cases publicly and .on oath.” Seventh Annual Report of Australian Tariff Board, June, 1928, p. 14. This does not mean, however, that there is no restraint upon publicity, The same statute provides that upon the objection of., a witness, evidence which the Board is satisfied is’ of a confidential nature may be presented in private if the Board considers it desirable in the public interest to do so. Annals of the American Academy of Political -and Social Science, vol. CXLI, January, 1929, Tariff Problems of the United States, pp. 83, 84. The Board evidently considers cost figures to be confidential. Third Annual Report, supra. They were so considered, it seems, in the debates in Parliament. 108 Pari. Debates, 3968, 4003 (1924).
It is due to merchants and others called to give such information that their statements shall be taken in the presence of official persons only. It must often occur that persons in possession of facts which would be of value to the appraisers in determining market values are deterred from appearing or testifying by the publicity given .to reappraisement proceedings.” See the Treasury Instructions of June 9, 1885, set forth in full in Auffmordt v. Hedden, infra.
See Freund, Administrative Powers over Persons and Property, p. 162, and compare pp. 158, 160.
See the Reports of the Australian Tariff Board, supra.
See the minority report pf the Investigating Committee of the Senate under the 1926 resolutions, Senate Report No. 1325, supra, at p. 7. See also Senate Hearings, p. 1086.
As to other methods available of ascertaining the cost of production with approximate accuracy, see the testimony before the Senate Investigating Committee,- p. 1086.
