Kar-Ru Chemical Co. v. United States

264 F. 921, 1920 U.S. App. LEXIS 1337
CourtCourt of Appeals for the Ninth Circuit
DecidedMay 3, 1920
DocketNo. 3368
StatusPublished
Cited by5 cases

This text of 264 F. 921 (Kar-Ru Chemical Co. 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
Kar-Ru Chemical Co. v. United States, 264 F. 921, 1920 U.S. App. LEXIS 1337 (9th Cir. 1920).

Opinion

MORROW, Circuit Judge.

The Food and Drug Act of June 30, 1906 (34 Stat. 768), provided in section 2 as follows:

“That the introduction into any state * * * from any other state * * * of any article of, food or drugs which is * * • • misbranded” ¡ within the meaning of the act is prohibited, and that “any person who shall ship or deliver for shipment from any state * * * to any other state * * * any such article so * * * misbranded” within the meaning of .the act “shall be guilty of a misdemeanor.”

Section 8 of the act provided:

“That the term ‘misbranded,’ as used herein, shall apply to all drugs, or articles of food, or articles which enter into the composition of food, the package or label of which shall bear any statement, design, or device regarding such article, or the ingredients or substances contained therein which shall be false or misleading in any particular.”

In U. S. v. Johnson, 221 U. S. 488, 31 Sup. C’t. 627, 55 L. Ed. 823, this act came before the Supreme Court of the United States upon the question as to the meaning of tire word “misbranded,” as defined in the act, with'respect to a false statement on the label. The court held:

“That the phrase is aimed not at all possible false statements, but only at such as determine the identity of the article, possibly including its strength, quality and purity”

—and not at statements as to curative effect. In that case it was charged that the label stated or implied that its contents were effective in curing cancer, the defendant well knowing that the representations were false. The court held that, even if tire statement was misleading, it was not covered by the statute. This decision was rendered in May, 1911.

President Taft almost immediately transmitted to Congress a special message calling attention to the necessity of passing at an early date an amendment to the Food and Drug Act supplementing the existing law to “prevent the shipment in interstate and foreign commerce of worthless nostrums labeled with misstatements of fact as to their physiological action.” In the course of the message tire President said:

“In my opinion, the sale of dangerously adulterated drugs, or the sale of drugs under knowingly false claims as to their effect in disease, constitutes such an evil and warrants me in calling the matter to the attention of the Congress. Fraudulent misrepresentations of the curative value of nostrums not only operate to defraud purchasers, but are a distinct menace to the public health. There are none so credulous as sufferers from disease. The need is urgent for legislation which will prevent the raising of false hopes of speedy cures of serious ailments by misstatements of fact as to worthless mixtures on which the sick will rely while their diseases progress unchecked.” 62d Congress, 1st Sess., '47 Cong. Record, part 3, page 2379.

In response to this message an amendment to the act was introduced in the House, which was explained by Mr. Sherley, its author.' In the [923]*923course of his remarks he referred to the President’s message and the decision of the Supreme Court in'the Johnson Case, in which he stated that the court had held:

“That the sections of the Pure Food Law relating to - misbranding did not embrace statements as to the curative or therapeutic properties of drugs There was a very strong dissent handed down by Justice Hughes, and concurred in by Justice Hay and Justice Harlan, holding that a proper construction of the act would embrace such cases. The majority of the court seem to have gone on the idea that it was not the intention of Congress to enter into, the. domain of matters in issue between rival schools of medicine, but, as is very clearly set out by the minority in their dissenting opinion, there were a great many cases that did not belong in this twilight zone, but represented plain cases of fraud and deceit. In the opinion of the minority of the court, it was the intention of the law to reach such cases, and, believing it certainly ought to be the intention of the law to reach them, I introduced the bill now before the House. Just after its introduction, the President called attention to the importance of the decision and the need of a remedy by a special message to Congress. This act has been drawn with some care, and as perfected by the amendments offered will certainly reach those cases of fraud without undertaking to have the government enter into the disputed domain that lies outside of proper legislation.” 02d Cong., 2d Sess., 48 Congressional Record, part 11, page 11322. ’

The amendment was passed. It provided, among other things, the addition of a paragraph to section 8 of the Act of June 30, 1906, defining misbranding, as follows:

“Third. If its package or label shall bear or contain any statement, design, or device regarding the curative or therapeutic effect of such article or any of the ingredients or substances contained therein, which is false and fraudulent.”

The information in this case contains four counts. The first count charges the defendant with the unlawful shipment and delivery for shipment via United States mail from the city of Tacoma, state of Washington, to the city of Portland, state of Oregon, consigned to Clarke Woodward Drug Company, a certain package containing three boxes, each box containing an article designed and intended to be used in the cure, prevention, and medication of diseases of men. The character and brand of the boxes is set forth, and it is charged:

“That when shipped and delivered for shipment as aforesaid said article of drugs was 1hen and there misbranded within the meaning of the said act of Congress, as amended, in that the following statement regarding the therapeutic or curative effect thereof appearing on the label aforesaid, to wit: ‘Kar-lin,’ the constitutional remedy for Rheumatism * * * It is effective in Kidney, Liver, Bladder, Stomach, and Catarrhal Troubles, Mental and Physical Debility, Neuritis, Eczema, Blood Diseases, Irregular Menstruation, and the most Acute and Chronic Rheumatic Afflictions’' — was false and fraudulent in this : that the same was applied to said article unlawfully and in reckless and wanton disregard of its truth or falsity, so as to represent falsely and fraudulently to. the purchasers thereof and create in the minds of the purchasers thereof the impression and belief that the article was in whole or in part composed of or contained ingredients or medical agents effective among oilier things as a remedy for rheumatism. * * * or effective as a remedy for kidney, liver, bladder, stomach or catarrhal troubles, or effective as a remedy for mental or physical debility, neuritis, eczema, blood diseases, irregular menstruation or the most acute and chronic rheumatic afflictions, when in truth and in fact said article was not in whole or in part composed of and did not contain any ingredients or medical agents effective among other things as a remedy for rheumatism, or effective as a remedy for kidney, liver, bladder, stomach or [924]*924catarrhal troubles, or effective as a remedy for mental or physical debility,, neuritis, eczema, blood diseases, irregular menstruation, or the most acute or chronic rheumatic afflictions.”

The other three counts were identical with the.

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Bluebook (online)
264 F. 921, 1920 U.S. App. LEXIS 1337, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kar-ru-chemical-co-v-united-states-ca9-1920.