General Trades School, Inc. v. United States

212 F.2d 656
CourtCourt of Appeals for the Eighth Circuit
DecidedJune 18, 1954
Docket14764_1
StatusPublished
Cited by1 cases

This text of 212 F.2d 656 (General Trades School, Inc. v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
General Trades School, Inc. v. United States, 212 F.2d 656 (8th Cir. 1954).

Opinion

JOHNSEN, Circuit Judge.

The question is as to the validity of an administrative subpoena issued by the Administrator of Veterans’ Affairs, on which the District Court had ordered a compliance.

General Trades School, Inc., of St. Louis, Missouri, had contracted with the Veterans’ Administration to give training in auto body repairing to veterans, under Public Law 346, 78th Cong., 58 Stat. 287, 38 U.S.C.A. § 701. The Administration was to pay a certain charge as tuition, and for necessary books, supplies and equipment “at cost to school, plus 10% for handling.”

The school prepared a schedule, which was attached to and made a part of the contract, of “required books, supplies and equipment and approximate price.” The schedule, captioned “Tool List”, set out 22 items and a price figure for each, with the total estimated cost shown amounting to $56.00.

Statements submitted by the school from time to time were apparently paid by the Veterans’ Administration in ordinary course, until the General Accounting Office sent it a communication advising it that a check made by that Office indicated, among other things, that the school had been billing the Administration for tools, “at an average increase over cost of $18.00 per tool kit.” The communication also suggested that not only had the school overcharged for the tools as separate items, but that it further had included the cost of them in its consumable supplies and so seemingly had received duplicate payment for them. When the Administration thereafter requested the privilege of examining the school’s books and records, the school refused to permit it to do so.

The Administrator of Veterans’ Affairs then issued an administrative subpoena, requiring the president of the school to appear and give testimony and to bring with him, for the period that the contract had been in effect, “all records pertaining to the purchase of tools and supplies including invoices, contracts pertaining to the purchase of tools and supplies, and individual folders pertaining to all students who have been in attendance * * * and for which claims have been or will be presented to the U. S. Veterans Administration for tuition, cost of tools and supplies, and any other evidence in your possession bearing on this subject.”

The president ignored the administrative subpoena, and the Administrator accordingly made application to the District Court for a compliance order. The application was resisted by the president and the school, on the grounds that the Administrator had no authority in law to issue any such subpoena and that the subpoena was for other reasons also invalid. The court held that the subpoena was in general valid and entered an order of compliance, requiring the president of the school to appear and give testimony and to produce the files and records requested in relation to “the Veterans Administration investigation to determine the cost of tools, supplies and equipment furnished students under Public Law No. 346, 78th Congress, as amended.” The order further made its own specification of the things required to be produced, as consisting of “all records * * * pertaining to the procurement and net prices charged to and paid by said General Trades School, Inc., for tools, supplies and equipment furnished students * * * under Public Law No. 346, 78th Congress, as amended,” throughout the contract period, “and more particularly any and all general accounting records, files, folders, correspondence, price lists, records of inventory, physical inventories, records of accounts payable, accounts payable, cash disbursements, cash receipts, cancelled checks and any other evidence in the possession of the said institute bearing on said cost of tools, supplies and equipment furnished by the said General Trades School, Inc.”

*659 The principal contention on this appeal, taken by the president and the school, is that the Administrator of Veterans’ Affairs had been granted no authority by Congress to issue investigative subpoenas in relation to the educational and vocational-training program for veterans under Public Law 346, 78th Congress, 58 Stat. 287. Such subpoena power as is possessed by the Administrator admittedly rests upon 49 Stat. 2033, 38 U.S.C.A. § 131, 1 which, among its grants, authorizes the issuing of subpoenas by him “to make investigations and examine witnesses upon any matter within the jurisdiction of the Administration.”

It is argued that the word “jurisdiction” in legal use has application to the exercise of judicial or quasi-judicial power only; that the Veterans’ Administration has no such power to make adjudications or determinations as to the rights or duties of educational or vocational institutions under existing contracts entered into between the Administrator and such institutions for veteran-training; and that the Administrator therefore was without any authority to issue a subpoena to investigate the cost of the tools and equipment which the school was furnishing under its contract, on the purported basis of the question being a “matter within the jurisdiction of the Administration.”

But this concept of “jurisdiction”, in relation to the subpoena power under § 131, is one that is both artificial and un-required. “Jurisdiction” is not always used to connote the exercising of judicial or quasi-judicial power. “It is a term in general use, of comprehensive and large import, having different meanings, dependent on the connection in which it is found and the subject matter to which it is directed”, and it is in fact “often used without any determinate signification.” 50 C.J.S. pp. 1089, 1090.

And so it has been recognized that a legislative use of the term “jurisdiction”, in relation to the functioning of an administrative agency, is not necessarily one of legal technicalness but may be simply a general characterization of the field of powers and duties of that agency in administering or enforcing law. See United States v. White, D.C.S.D.Cal., 69 F.Supp. 562, 564; United States v. Sanders, D.C.S.D.Tex., 42 F.Supp. 436, 439. Cf. also Sanchez v. United States, 1 Cir., 134 F.2d 279, 283. The recent case of Carroll Vocational Institute v. United States, 5 Cir., 211 F.2d 539, has specifically held that it is in this sense that the word “jurisdiction” was intended to be used in 38 U.S.C.A. § 131. We agree.

The language of § 131 may again be noted, that “For the purposes of the laws administered by the Veterans’ Administration, the Administrator * * * shall have the power to issue subpenas * * * to make investigations * * * upon any matter within the jurisdiction of the Administration.” Public Law 346 specifically commits the administration of its educational and training provisions to the Administrator. 58 Stat. 290. He is authorized to make necessary rules and regulations. Ibid. He has t?ie power to approve or disapprove institutions as being qualified to furnish education or training under the Act. Id. p. 289. He is authorized to fix “fair and reasonable compensation” for such education or training, where the institution has no established tuition fee or where its established fee is found by the Ad *660 ministrator to be inadequate compensation. Ibid.

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