Bowles v. Marx Hide & Tallow Co.

153 F.2d 146, 1946 U.S. App. LEXIS 1893
CourtCourt of Appeals for the Sixth Circuit
DecidedFebruary 6, 1946
DocketNo. 10060
StatusPublished
Cited by5 cases

This text of 153 F.2d 146 (Bowles v. Marx Hide & Tallow Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bowles v. Marx Hide & Tallow Co., 153 F.2d 146, 1946 U.S. App. LEXIS 1893 (6th Cir. 1946).

Opinion

HICKS, Circuit Judge.

The question before the District Court was one of fact. It was, whether appellee, a hide broker, purchased or sold hides of cows, steers and bulls in lots of less than 20.000 pounds. If it did, and received a commission therefor, it violated paragraph 1314.4 of Revised Price Schedule No. 9 of the Office of Price Administration, printed in the margin 1 and was liable in damages to the Administrator, in a sum three times the amount of the unlawful commission charged in each transaction. 50 U.S.C.A. Appendix, § 925(e). The District Court found that in all instances, save two, of those listed in Exhibit A to the complaint, appellee had made purchases in excess of 20.000 pounds. In those two instances it gave judgment for $9.09 and $6.36 respectively and these judgments are not in controversy here.

The Price Administrator appealed and asserts here that there is no support for the finding that the purchases from the packers by appellee as a broker were in each instance for a lot of hides in excess of 20,000 pounds entitling it to receive a commission of 3% on the sales under Sec. 1314.4. We think that this contention is contrary to the “indisputable character of the evidence.” Tracy v. Com’r, 6 Cir., 53 F.2d 575, 579.

Laying to one side, for the present, another contention of appellant, we consider first whether Sec. 1314.4 was violated, since that was the only violation charged in the complaint. Appellee was broker for two tanners in the purchase of hides from a number of smaller meat packers. Since, even before the war, there was strong competition among the tanners for hides, the smaller packers had been accustomed to [147]*147require that their entire monthly production be purchased in one lot, even though it contained bull hides, which many tanners were not equipped to use. In the transactions involving the fifteen alleged violations listed in Exhibit A, apart from those two in which violation was admitted, the testimony shows that the aggregate purchase of all hides from the packers, including bulls, exceeded 20,000 pounds.

But the purchasing tanners could not use the bull hides, so appellee arranged to deliver them to other or secondary purchasers, who could use them. In fourteen instances, listed in Exhibit A, the split deliveries of bull hides to the secondary purchasers were in amounts of less than 20,000 pounds and the District Court so found in its Finding 9. In the fifteenth transaction, seventh on the list in Exhibit A, the delivery of cattle hides to the primary purchaser, after the bulls had been taken out, was less than 20,000 pounds.

Appellee contends that in each transaction there was only one purchase, that of the entire monthly output of the packer by the primary purchaser, who agreed to take the whole lot and assumed responsibility for the entire purchase, including the commissions thereon to appellee. It contends that the arrangement to deliver the bulls directly to a tanner who could use them was an accommodation to the primary purchaser, and saved useless shipping to the primary purchaser and thence to the secondary purchaser.

The Price Administrator points out that the secondary purchaser paid the broker the proportion of the commission represented by the bulls to the entire purchase and that the books of the primary purchaser disclosed no liability to the broker for commissions on the bulls; and that the entire transaction indicates that the sales to the secondary purchasers were independent sales, and violative of the regulations, since they were for amounts less than 20,000 pounds.

In a colloquy with the District Court, counsel for the Price Administrator substantially conceded that the question, whether all three kinds of hides (cows, steers and bulls) were sold to the first tanner on his account, with disposal of the bulls to a second tanner as a matter of accommodation, or whether the cows and steers were sold to the first tanner and the bulls to another in an unrelated transaction, was one of fact.

If the evidence supports the finding of the District Court, that each purchase by the broker from the packer was for a lot of hides in excess of 20,000 pounds, then appellee is entitled to an affirmance of the judgment.

Isaac M. Bernstein, a hide buyer for Monarch Leather Company, one of the primary purchasers, testified as to a purchase from the Milner Provision Company, on November 24, 1942, that there were 18,405 pounds of cattle and steer hides which Monarch took, and 11,488 pounds of bull hides which Marx (appellee) agreed to sell to them. He testified that Monarch was obligated to take all of the given output of the packer and was responsible to Marx for the 11,488 pounds of bulls. He testified that in other transactions of purchase Monarch was likewise obligated to Marx for the bulls and that by using that method of disposal of the bulls directly to the secondary tanner freight and manpower could be saved, since it did not involve reshipping. He testified that competition was very keen for hides and that it would have been impossible to have bought the output of the smaller packing plants unless they took everything that was offered.

Bernstein testified on cross-examination that Monarch was not interested in the bull hides as long as Marx sold them and that he only purchased bulls when it was necessary to take them along with other hides. In response to the specific question as to the bull hides, “But Monarch actually didn’t purchase any of these hides, did they?” he answered, “Of course they did.” (Italics ours.) He further testified that they purchased them all and some of them they paid for and some they didn’t, but that they paid no commissions and made no expenditures for any hides other than those shipped to them. As to a November 25th transaction, he testified that he received confirmation only of cows and steers, “on the understanding that the bulls were sold to my account to somebody else.” (Italics ours.)

The Administrator introduced Bernstein as his own witness, and under familiar rules of evidence, vouches for his credibility.

The same rule applies to the testimony1 of Sol. W. Marx, likewise introduced as [148]*148a witness by the Administrator. Marx was secretary and treasurer of appellee. He testified: “When this situation arose, the Monarch Leather Company and the Abert Trostel & Sons Company, knowing that they had to purchase these bulls along with the cows and steers, * * * knowing that I was a broker and was in touch with all various sources or outlets for hides and knew what all the various tanners were using, they asked me if I would for their account dispose of all the bull hides. * * * And we talked this situation over * * * and I told them that naturally these bull hides could be disposed of for their account, that we could — if there was any loss on them in the sale of the bulls for their account, that they were responsible for it, and they were perfectly willing to assume that responsibility. * *, *”

Asked on cross-examination if appellee had any written agreement with the primary tanners to resell the bulls for their account, Marx answered, “No, we discussed it.

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Cite This Page — Counsel Stack

Bluebook (online)
153 F.2d 146, 1946 U.S. App. LEXIS 1893, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bowles-v-marx-hide-tallow-co-ca6-1946.