James Loudon & Co. v. United States

30 Cust. Ct. 58, 1953 Cust. Ct. LEXIS 6
CourtUnited States Customs Court
DecidedFebruary 5, 1953
DocketC. D. 1497
StatusPublished
Cited by1 cases

This text of 30 Cust. Ct. 58 (James Loudon & Co. v. United States) is published on Counsel Stack Legal Research, covering United States Customs Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
James Loudon & Co. v. United States, 30 Cust. Ct. 58, 1953 Cust. Ct. LEXIS 6 (cusc 1953).

Opinion

Johnson, Judge:

The merchandise at issue in this action was imported from Dairen, Manchuria, on March 20, 1931, invoiced as “Mixed Feed (95% Soya Cake Meal & 5% Maize Meal).” Duty was assessed thereon by the collector at the port of Los Angeles at the rate of three-tenths of 1 cent per pound under the provisions of paragraph 730 of the Tariff Act of 1930. The plaintiff claims that the merchandise is a mixed feed and should be classified under the same paragraph at the rate of 10 per centum ad valorem.

The pertinent provisions of the Tariff Act of 1930 are as follows:

Pah. 730. * * * soy bean oil cake and soy bean oil-cake meal, three-tenths of 1 cent per pound; * * * ; mixed feeds, consisting of an admixture of grains or grain products with oil cake, oil-cake meal, molasses, or other feedstuffs, 10 per centum ad valorem.

At the first hearing of this case in 1940, it was stipulated and agreed between counsel for both sides that the merchandise consisted of 95 per centum soybean oil-cake meal and 5 per centum maize meal and that the appraiser’s report become a part of the official record. A continuance was then granted for the purpose of agreeing to a stipulation disposing of the case.

The case subsequently was placed on the trial calendar at Los Angeles on February 25, 1943, and two witnesses for the plaintiff testified. The first witness, Herbert V. Nootbaar, manager of the plaintiff, testified that he had been in the feed business for 18 years, engaged in the purchase and sale at wholesale of feedstuffs, including mixed feeds. He purchased material from all over the country and sold on the Pacific coast and Hawaiian Islands primarily, occasionally [60]*60in the Midwest, the east coast, and the Gulf. He answered affirmatively the question, “Was there, on or prior- to June, 1930, a definite, general, and uniform commercial understanding of the term ‘mixed feeds’ throughout the wholesale trade and commerce of the United States? * * * I will add, within your experience?” When asked, “What was that meaning?” the witness replied, “The combination of two or more simple feeding ingredients.” When asked whether or not his testimony was limited to feedstuffs which can be fed directly to cattle, the witness replied as follows:

A. Well, inasmuch as any of the simple ingredients might be fed individually, collectively we consider any two or more as mixed feed and they, as such, could be sold to people 'for feeding to cattle as such.

When asked to name combinations of feedstuffs which- may be put together in a mixed feed, the witness gave examples—

.* * * you might use fish meal and barley, or corn and wheat, corn and linseed meal, or as many items as you might find suitable for feeds could be combined to make a mixed feed.

As to mixed feeds which are not fed directly to cattle, within his experience in the trade and commerce of the United States, the witness testified that it was quite a common practice, particularly in the Midwest, to combine any simple ingredients into a mixture that the farmer might use his own grain to supplement. The witness did not enlighten the court as to where he obtained his knowledge of the practice in the Midwest, or that such practice prevailed in March 1931 at the time of the importation of the instant merchandise, or at or before the passage of the Tariff Act of 1930.

The witness was of the opinion that the importation in question would fall within the commercial meaning of the term “mixed feed,” and that it could be fed directly to cattle. He admitted, however, that he had not seen the imported merchandise. Although he had a dairy farm, the witness admitted that he had no experience in feeding either the merchandise imported or merchandise of identically the same character.

Frank L. Cross testified that he preceded the previous witness as manager of plaintiff’s firm and was with the plaintiff at the time of the importation and in charge of the instant merchandise. He stated that he would testify substantially the same as the previous witness. He also admitted that he had not seen the instant merchandise used, nor did he disclose to what use the plaintiff usually devoted imported products identical with the instant merchandise.

At the next hearing in Los Angeles in 1943, Frank R. Noonan testified that he was buyer and salesman for the plaintiff since the year 1941, buying the ingredients of mixed feeds; that he had previously been employed by the International Milling Corp. located in the Mid-[61]*61die West; and that between the years 1926 and 1931, he principally was buying grain hut at times he was selling feed. The principal states in which he sold feed were Iowa, Illinois, and Missouri. He testified that in talking with dealers he had an opportunity of learning the terms used in the wholesale trade. When asked what was his understanding of the term “mixed feeds,” the witness stated:

It is a mixture of any two or more ingredients, each ingredient of which is an edible feed product, a feed ingredient.

The witness was also asked whether the commercial understanding of the term “mixed feeds” agrees or disagrees with the understanding as stated by the court for the common meaning. The witness replied—

Well, it is pretty hard to give a very simple answer to that. Now, all mills have a number of specialty feeds. You can take a tonic mash that is fed for a specific purpose. Now, if that question means that a mixed feed is only a feed that can be used as the complete ration for the animal, a tonic feed that would be fed for two or three days to rid the animal of some ailment would not be a mixed feed.

On further questioning, the witness testified that under the commercial understanding of the term a tonic feed would be a mixed feed; that the majority of so-called mixed feeds on the market rather supplement the diet, and are not the complete diet. The witness was of the opinion that a mixture of 95 per centum soybean oil-cake meal and 5 per centum maize meal would fall within the commercial definition of a mixed feed. The witness compared bran and molasses, known as Taylor’s Sweet Bran, with the imported merchandise, referring to it as a tonic but within the commercial description of the term “mixed feeds.” He testified that Taylor’s Sweet Bran, in the general sense, was a medicine and would be harmful if fed beyond the period needed, and if he received an order for a mixed feed, he would not send a tonic. Notwithstanding such limited use, he would classify concentrates and tonics as mixed feeds. In his opinion, the term “mixed feeds” was only a general term; that in trade and commerce it was a family name for a number of commodities; that the term characterizes the products put out by the feed industry as a whole and does not apply to any one specific feed; and that an order for a mixed feed would have to be amplified because mixed feed is not bought and sold that way.

The witness further testified that soybean oil-cake meal was a rather new product to him and .that he had no personal experience with such meal “prior to about two years ago.” He stated that the culture of the soybean in the United States did not commence until around 1932 and he had no knowledge when it was used in a balanced ration; and that prior to 1932, all of the soybean was imported and would have been used on the Pacific coast while not in the Middle West.

[62]

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Related

Pioneer Transfer Co. v. United States
30 Cust. Ct. 101 (U.S. Customs Court, 1953)

Cite This Page — Counsel Stack

Bluebook (online)
30 Cust. Ct. 58, 1953 Cust. Ct. LEXIS 6, Counsel Stack Legal Research, https://law.counselstack.com/opinion/james-loudon-co-v-united-states-cusc-1953.