Jacob Ruppert v. Caffey

251 U.S. 264, 40 S. Ct. 141, 64 L. Ed. 260, 1920 U.S. LEXIS 1735
CourtSupreme Court of the United States
DecidedJanuary 12, 1920
Docket603
StatusPublished
Cited by188 cases

This text of 251 U.S. 264 (Jacob Ruppert v. Caffey) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jacob Ruppert v. Caffey, 251 U.S. 264, 40 S. Ct. 141, 64 L. Ed. 260, 1920 U.S. LEXIS 1735 (1920).

Opinion

Mr. Justice Brandéis

delivered the opinion of the court.

By the Act of August 10,1917, c. 53, § 15, 40 Stat. 276, 282, a war measure known as the Lever Act, Congress prohibited the use after September 9, J91V, of food materials or feeds in the production of distilled spirits for beverage. purposes and authorized the President to limit or prohibit their use in the production of malt or vinous liquors for beverage purposes, so far as he might, from time to time, deem it essential to assure an adequate supply of food, or deem it helpful in promoting the national security or defense. Under the power so conferred the President, by proclamation of December 3, 1917, 40. Stat. 1728, prohibited the production after January 1, 1918, of -any “malt liquor except alé and porter ’’¿containing more than 2.75 per centum of alcohol by weight. By proclamation of September 16, 1918, 40 Stat. 1848, the prohibition was extended to “malt liquors, including near beer, for *279 beverage purposes, whether or not such malt liquors contain alcohol”; and by proclamation of March 4, 1919, 40 Stat. 1937, the prohibition was limited “to intoxicating malt liquors.” Under § 2 of the act the duty of enforcing the above provisions was assigned to the Commissioner of Internal Revenue. This act contained no provision prohibiting the sale of intoxicating or other liquors.

On November 21,1918, the so-called War-Time Prohibition Act (c. 212, 40 Stat. 1045) was approved. It provided .that:

“After May first, nineteen hundred and nineteen, until the conclusion of the present war and thereafter until the termination of demobilization, the date of which shall be determined and proclaimed by the President of the United States, no grains, cereals, fruit or other food product shall be used in the manufacture or production of beer, wine, or other intoxicating malt or vinous liquor for beverage purposes. After June thirtieth, nineteen hundred and nineteen, until the conclusion of the present war and thereafter until the termination of demobilization, the date of which shall be determined and proclaimed by the President of the United States, no beer, wine, or other intoxicating malt or vinous liquor shall be sold for beverage purposes except for export. . ...”

On February 6, 1919, the Commissioner of Internal Revenue ruled (Treasury Decision 2788) fhat a beverage containing as much as one-half of one per centum of alcohol by volume would be regarded as intoxicating within the intent of the Act of November 21, 1918; and that after May 1, 1919, persons would not b' permitted to qualify as brewers, if the alcoholic coi.tent of their product equalled or exceeded that percentage. In so ruling the Commissioner adopted and applied to this prohibitory act' the same classification of malt liquors which had been applied in administering the laws concerning the taxation of beer and other similar fermented liquors. *280 For since 1902 (Treasury Decision 514) fermented liquor containing as much as one-half of one per centum of alcohol had been treated as taxable under Rev. Stats. §§ 3339 and 3242; and this classification was expressly adopted in the War Revenue Act of October 3,1917, c. 63, § 307j 40 Stat. 311. The correctness of this construction of the act was promptly and earnestly controverted by the brewers, who insisted that Congress had intended to prohibit the production only of such beer or other, malt liquors as were in fact intoxicating. The attempt was then made to remove the doubt by new legislation before May 1, 1919, when the act would by its terms become operative. On February 26 the House Committee on the Judiciary reported favorably an amendment to H.R. 13581 providing: “The words ‘beer, wine or other intoxicating malt or vinous liquors’ in the war prohibition act shall be construed to mean any liquors which contain in excess of one-half of one per centum of alcohol.” The Sixty-fifth Congress ended on March 4 without acting on this bill; and the Sixty-sixth Congress did not convene in Extra Session until May 19. On June 30, the House Committee on the Judiciary reported substantially the same provision as § 1 of Title I of H. R. 6810; but it was not enacted until October 28,1919, when as the Volstead Act it was passed over the President’s veto. a

*281 Immediately after the passage of the Volstead Act, this suit was brought in the District Court of the United States for the Southern District of New York by Jacob Ruppert against Caffey, United States Attorney, and McElligott, Acting Collector of Internal Revenue, to enjoin the enforcement as against the plaintiff of the. penalties provided in the War-Time Prohibition Act as amended by the Volstead Act. It was heard below on plaintiff’s motion for a prehminary injunction and defendants’ motion to dismiss; and having been dismissed, was brought here by direct appeal under § 238 of the Judicial Code. The bill alleged that plaintiff, the owner of a brewery and appurtenances, was on October 28, 1919, engaged in the manufacture of a beer containing more than one-half of one per centum of alcohol by volume and less than 2.75 per centum by weight or 3.4 per centum by volume, and had then on hand a large quantity of such beer; and that this beer was not in fact intoxicating. Plaintiff contended (1) that the Act of November 21, 1918, had become void or had expired by its own terms before the bill was filed; (2) that its prohibition by its terms was limited to beer which was in fact intoxicating; (3) that the Act of October 28, 1919, Title I, § 1, which purported to extend the prohibition to the manufacture and sale of beer not in fact intoxicating, exceeded the war power of Congress; and that thereby violation of rights guaranteed to plaintiff by the Fifth Amendment was threatened.

This case was heard and decided below with Dryfoos v. Edwards, ante, 146; and it was argued here on the same day with that case and Hamilton v. Kentucky Distilleries & Warehouse Co., ante, 146. For the reasons set forth in *282 the opinion in those cases, the Act of November 21,1918, was and remained valid as against the plaintiff and had not expired. For the same reasons § 1 of Title I of the Act of October 28, 1919, was not invalid, merely because it was new legislation. But it is insisted that this legislation is nevertheless void as against the plaintiff, because Congress could not, even under its full war powers, prohibit the manufacture and sale of non-intoxicants, and, at all events, could not without making compensation, extend the prohibition to non-intoxicating liquor acquired before the passage of the act. These objections require consideration.

First: May the plaintiff show as a basis for relief that the beer manufactured by it with alcoholic content not greater than 2.75 per centum in weight and 3.4 per centum in volume is not in fact intoxicating? The Government insists that the fact alleged is immaterial since the passage of the Volstead Act by which the prohibition of the manufacture and sale is extended to all beer and other malt liquor containing as much as one-half of one per centum of alcohol by volume.

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Cite This Page — Counsel Stack

Bluebook (online)
251 U.S. 264, 40 S. Ct. 141, 64 L. Ed. 260, 1920 U.S. LEXIS 1735, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jacob-ruppert-v-caffey-scotus-1920.