Canella v. United States

157 F.2d 470, 1946 U.S. App. LEXIS 2733
CourtCourt of Appeals for the Ninth Circuit
DecidedSeptember 16, 1946
Docket10955
StatusPublished
Cited by44 cases

This text of 157 F.2d 470 (Canella v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Canella v. United States, 157 F.2d 470, 1946 U.S. App. LEXIS 2733 (9th Cir. 1946).

Opinion

ORR, Circuit Judge.

This is an appeal from a conviction upon an indictment charging in one count a single general conspiracy to defraud the United States by (1) depriving the United States of its right to have the lawful functions of the various offices held by Colonel Canella (one of the appellants here) administered free from corruption and fraud; and, (2) • by depriving the United States of its right to the faithful action of Canella in the discharge of his offical duties free from corruption and fraud.

The questions presented are: (1) Whether the proof submitted to the jury conformed to the charge of a single conspiracy, or whether the proof showed several separate similar conspiracies; and (2)' if there was such a variance-between proof arid indictment whether or not that variance constituted fatal error.

The facts, which involve numerous people, are both lengthy and complex. We,therefore, set them forth in some detail.

Appellant Canella, a Regular Army officer,, reported to the Santa Ana Army Air Base,, to which we shall hereafter refer as the-Base, in California, on December 10, 1941,. as the Post Quartermaster. As such his-duties included the hiring of civilian personnel and the procuring of some of the-food and other supplies used on the Base.

The record discloses that Canella and one-Campbell, a Santa Ana real estate broker,, became friends soon after Canella arrived! at the Base, and that Canella, in conversations with Campbell, said he would be hiring many civilian employees and letting out. numerous contracts for supplies at the-Base but that he (Canella) was going to-be paid for awarding those jobs and contracts, and that Campbell should find people-who wanted jobs and who wanted to sell! milk and other products and services to-the army and who were willing to pay Canella for giving them these jobs and contracts. Campbell agreed.

Thus there was formed the' conspiracy-charged in the indictment.

The following transactions are involved r

A. Sale of three civilian jobsr Three civilian employees at the Base were hired by Canella under the following circumstances. 1

(1) One Miller applied to Canella for the position of Assistant Fire Chief at the-Base. There were two other applicants-for this post. Canella told Campbell that Miller was not going to get the job unless-Miller paid Canella $200 to $250, and that. Campbell should pass this information on. to Miller. Canella later told Miller that his chances for the post looked “a little-worse.” Thereupon Miller agreed to pay-$100 for the job, gave the money to Campbell who in turn gave it to Canella. Canella. *473 then appointed Miller over a veteran applicant with a higher civil service rating for the position than Miller.

(2) One Jensen inquired of Campbell whether Jensen’s brother, Anton, could get a job at the Base as an electrician. Campbell, after talking with Canella, told Anton Jensen he could have a job if he would pay $100 for it. Campbell sent Anton Jensen to Canella’s office, having previously told Canella that Jensen would pay for the job. Canella hired Jensen, who then paid Campbell $100. Campbell turned this over to Canella.

(3) Campbell, at the request of a friend, took one Elliott to Canella’s office to talk about a job as painter on the Base. Elliott was not employed then but was told to come hack. Before he returned to the Base Elliott borrowed $50 and paid this to Campbell who in turn gave it to Canella. On Elliott’s next visit to Canella’s office he was employed as a painter.

Miller, Jensen, Elliott and Campbell were all described as co-conspirators in the indictment, but none of them was indicted. There was no evidence to indicate Miller, Jensen or Elliott knew of the other’s transactions with Campbell and Canella, nor that they knew of any of the transactions set out below.

B. The Excelsior Creamery Company Milk contract transactions.

When the Campbell-Canella conspiracy was formed, Canella asked Campbell to find people who would be interested in paying a percentage of the gross profits to obtain the contract to supply milk and dairy products, among other items, to the Base. Campbell, after unsuccessfully approaching one Todd, who operated a dairy in Santa Ana, interviewed officials of the Excelsior Creamery Company sometime between February 11 and 15, 1942.

Appellant Wyckoff, plant superintendent and wholesale sales manager of this concern, had previously inquired of army personnel as to how his company could obtain business when the Base was opened. He had been introduced to Canella and they had discussed the procedure of submitting bids and prices.

Until May 1942 the milk contracts were awarded by a system of competitive, sealed bidding. After May 1942 the contracts were awarded by negotiation. On February 6, 1942, Excelsior put in its first bid for business at the Base, and although all the bids opened were tied, Arden Farms, a competitor of Excelsior, was awarded the contract. Thus, it was shortly after Excelsior lost its first contract at the Base that Campbell approached them, saying that he knew “a fellow who had authority” to give them the milk and dairy products contract if they were willing to pay for it. Wyckoff and Ranney 2 asked if 2% of the gross business a month would be satisfactory, and Campbell, after reporting the proposition to Canella and receiving the latter’s acquiescence, reported to Ranney and Wyckoff that 2% would be agreeable.

Campbell also told them that “his man” at the Base would have access to all bids before they were opened and that he could thus tell Excelsior what they would have to bid on the various dairy products 3 in order to win the contracts for the succeeding months. Campbell then obtained the figures for the next bid, gave them to Excelsior, and on February 17, 1942 Excelsior won the contract for the March business because it was low bidder on cream, buttermilk and cottage cheese. Excelsior’s bid on ice cream was considered and accepted despite the fact that it was an “alternate bid.” The army’s request for bids expressly declared “alternate bids” would not be considered.

In March Excelsior’s bid for the April business was the same as Arden Farms, but because Arden put in an “alternate bid” it was not recognized and Excelsior won the April contract despite the fact that Excelsior’s alternate bid had won the preceding month.

*474 In April Arden delayed bringing in its bid for the May contract until a few minutes before the bids were to be opened and because it bid an unheard of low price on ice cream Arden won the May contract. In May Arden and Excelsior turned in identical bids but Excelsior won the June contract.

From June on, changed army regulations permitted contracts to be awarded' by negotiation rather than competitive bidding and Excelsior and Arden, and later other dairies (when the demand exceeded Excelsior’s and Arden’s capacity) divided the business at the Base.

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Bluebook (online)
157 F.2d 470, 1946 U.S. App. LEXIS 2733, Counsel Stack Legal Research, https://law.counselstack.com/opinion/canella-v-united-states-ca9-1946.