Barrett Lumber & Supply Co. v. Clark

167 F.2d 474, 1948 U.S. App. LEXIS 3381
CourtEmergency Court of Appeals
DecidedMarch 15, 1948
DocketNo. 373
StatusPublished

This text of 167 F.2d 474 (Barrett Lumber & Supply Co. v. Clark) is published on Counsel Stack Legal Research, covering Emergency Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barrett Lumber & Supply Co. v. Clark, 167 F.2d 474, 1948 U.S. App. LEXIS 3381 (eca 1948).

Opinion

McAllister, judge.

Complainants are defendants in actions for treble damages brought against them by the United States under Section 205(e) of the Emergency Price Control Act of 1942, as amended. 50 U.S.C.A.Appendix, § 901 et seq. They filed their complaint in this court after disallowance by the Administrator of their protest against certain lumber regulations.

By their complaint, they challenge Section 41 of Second Revised Maximum Price Regulation 215 as contravening Section 2 (a) 2 of the Emergency Price Control Act; and they challenge Section 83 of the same regulation as being invalid under Sections 2 (a),4 2(h),5 and 2(j) (4) 6 of the Act. [476]*476Stated more specifically, complainants attack the provisions of the regulation on the ground that they are not generally fair and equitable; that they compel changes in business practices, cost practices, and means or aids to distribution established in the industry, in violation of law; that the regulation fixed maximum prices for commodities in terms of specifications which were not in general use in the industry; and that the maximum prices were established by the Administrator without any consultation with representative members of the industry in question, and without consideration of any data pertaining to such industry.

Complainants are large retailers of lumber, maintaining retail lumber yards in the great metropolitan areas of the eastern cities of the United States. Prior to the late war, and during their entire business existence, they handled, almost exclusively, construction types of lumber, known generally as Common Southern Pine, Common Douglas Fir, -and Western Hemlock. They sold at retail only, and their sales were large quantity sales, in keeping with the extensive operations in the construction of apartment buildings and great groups of houses in such areas. Prior to the Emergency Price Controí Act and the late war, they were purchasers, as retailers, of shipments of lumber from wholesalers and the mills. They bought and sold common grades of construction lumber in large quantities. Common grades of construction lumber are those used in sheathing, roofing, beams, joists, and for similar purposes. Before the war, and before price control, when complainants would order a common grade of construction lumber such as No. 1 Common Southern Pine, the mill would ship that grade, and all higher grades “developing,” at the price of that grade. By “developing” is meant any other grades that might be produced out of the log when it was sawed. In filling an order for common grades of construction lumber, the mills did not take the trouble to segregate each grade of boards as they were sawed out of the logs. Some such boards might be of better grades than that ordered; but whatever they were, they were included in the shipment' of common construction lumber. 1 They were not separately invoiced, but were billed at the price of the grade ordered. When the retailers, or yards, sold the lumber that had been so purchased and shipped, they sold it on the same basis on which it was bought. They did not sort the shipments of construction lumber to segregate boards which might be of a higher grade than the type of lumber ordered. Before the war, the demand, seemingly, was not great for certain of the higher grades of lumber, and it might well -be that in addition to the manner of filling orders as above described, a mill, when it would receive an order for common construction lumber, would use some of a higher grade off piles of lumber that it could not readily sell. When such construction lumber was sold by complainants at retail to a builder for instance, he would simply use it for general construction purposes, such as roofing or sheathing. If some boards were of a better grade than others, he, nevertheless, used them for the same purpose that he used those that corresponded to the grade ordered. The better boards, in such a case, were of no added value or utility to the builder. Pie was only interested in using the lumber ordered and delivered as construction lumber, for construction purposes, and for this purpose, one such board or piece of lumber, out of such a mixed shipment, was as good as another.

With the coming of the war and price control, this situation greatly changed. The common grades of construction lumber had been exclusively handled by the retail yards. Such retailers had some knowledge of, and had handled, a few grades of lumber other than construction lumber, such as some higher grades “for a special purpose,” like flooring. But they had never handled, and had never heard of, a great number of different grades of lumber. However, distribution yards such as complainants’ are only one segment of the lumber industry. [477]*477The mills had always been selling numerous different grades of lumber to many classes of purchasers other than retailers, and retail lumber yards. The lumber industry generally recognized these many different grades. It had promulgated various grading handbooks defining such grades; and they were produced and sold generally by the mills — the producing segment of the industry.

When the mill regulations were established by the Administrator, these grades, appearing in the grade handbooks, which had been promulgated and had been in general use for a long time in the industry were expressly adopted by the Price Administrator, as grades in the regulation.

Upon the declaration of war, there were, immediately, huge purchases of lumber by the government. Apparently, as a result, there arose a great demand from builders and others for these various grades of lumber. It was difficult for private builders and contractors to purchase common construction lumber because of the priority right thereto of the Army and of the government generally, as well as the increased demand on the part of the public. Such private parties, therefore, it seems, resorted to buying lumber on grade, or to purchasing "combination shipments,” paying for the upper grades in order to get the lower ones. They were willing to pay the higher prices for the higher grades in order to get any lumber at all. Naturally, this brought about a greatly increased market for the higher grades of lumber, and the mills, seeing that they could sell a large amount of lumber on grade, which they could not have sold before the war, naturally proceeded to segregate it and to sell it on grade. Under the new situation, when they filled orders for common construction lumber, they discontinued throwing in the higher grades with the lower, as they had before the war.

When purchasers, such as complainants, wanted to buy common construction lumber during the war and after price control became law, they couldn’t secure it from the mills, for the mills no longer shipped lumber on that basis but sold it entirely on the basis of grades of the various boards or pieces of lumber making up the shipment. In other words, instead of selling a shipment of common construction lumber as they had before the war, invoicing on the basis of the specified minimum grade or better, and charging for the whole shipment at the price for such specified minimum grade, the mills now sold on grade, invoicing and charging for each separate grade of lumber that went to make up the carload shipment.

During the war, complainants’ chief customer — practically their only customer— was the government.

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Bluebook (online)
167 F.2d 474, 1948 U.S. App. LEXIS 3381, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barrett-lumber-supply-co-v-clark-eca-1948.