Pacific Gas Corp. v. Bowles

153 F.2d 453, 1946 U.S. App. LEXIS 1942
CourtEmergency Court of Appeals
DecidedFebruary 13, 1946
DocketNo. 258
StatusPublished
Cited by5 cases

This text of 153 F.2d 453 (Pacific Gas Corp. v. Bowles) is published on Counsel Stack Legal Research, covering Emergency Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pacific Gas Corp. v. Bowles, 153 F.2d 453, 1946 U.S. App. LEXIS 1942 (eca 1946).

Opinion

McALLISTER, Judge.

This case involves an order issued by the Office of Price Administration pursuant to Maximum Price Regulation No. 88 1 — Fuel Oil, Gasoline, and Liquefied Petroleum Gas.

Complainant is a Rhode Island corporation located at Fall River, Massachusetts. Since June, 1942, it has been engaged in the sale, of gasoline, described as 14 pound Reid Vapor Pressure natural gasoline. It purchases such gasoline from the Warren Petroleum Corporation, of Tulsa, Oklahoma. It then sells the gasoline in the district in which it is located, designated as Petroleum Administration for War District No. 1, which includes the New England area. Complainant does not own or operate any storage or terminal facilities. The natural gasoline which it purchases from the Warren Corporation is shipped directly by that corporation to complainant’s customers.

[455]*455At the outset, it may serve to clarify the discussion to observe that complainant, throughout the proceedings, is referred to as a “marketer”, as contrasted with a broker or producer. The term means no more than that complainant is a seller — in this case, of gasoline of which it had become the owner, by reason of its purchase from the Warren Company. It is distinguished from a broker inasmuch as it does not receive a commission upon sales, but rather seeks a profit on the sale of its own property. Being a purchaser from the producer, and a seller to the public, it occupies the merchandising position of a so-called “middleman”.

On September 28, 1944, the Office of Price Administration concluded that complainant had been selling natural gasoline since 1942 at prices violating Regulation No. 88 and, therefore, issued an order, under Section 8.3 of the Regulation, establishing maximum prices for complainant, retroactively to a date fifteen days after its first sale — which was more than two years prior to the date of the order. Complainant filed protest, and upon findings adverse to its claims which were entered by a Board of Review, and which were adopted by the Administrator, the present complaint was filed.

Complainant contends that it was entitled to have its maximum prices established under Section 5.3 of Maximum Price Regulation No. 88; that the orders issued under Section 8.3, establishing complainant’s maximum prices were unlawfully discriminatory; that such orders prevented complainant from realizing any mark-up whatever, and were accordingly rendered invalid; that Maximum Price Regulation No. 88, and particularly Amendment 19 thereto, is generally unfair and inequitable because the prices thereby established for the sale of natural gasoline to ultimate consumers in Petroleum Administration for War District No. 1 were the same for refiners, terminal operators, and other sellers; and that the Regulation and Amendment illegally discriminated against complainant by providing for an additional % cent per gallon mark-up to “eligible marketers”, shipping natural gasoline to ultimate destinations in all Petroleum Administration for War Districts other than Petroleum Administration for War District No. 1, in which complainant is located and does business.

Of the above contentions of complainant, the one upon which chief reliance is placed, is that complainant’s maximum prices had been properly adopted under Section 5.3 of Maximum Price Regulation No. 88, and that all of its sales during the period in question were made in accordance therewith. In passing upon this contention, we come to the consideration of the pricing provisions of Maximum Price Regulation No. 88.

In Section 5.1 of the Regulation, it is provided: “A seller’s maximum price for a petroleum product of a particular grade shall be the lowest quoted price published in the October 8, 1941, issue of the National Petroleum News for a product of the same grade.”

Section 5.2 provides that if prices “cannot be determined under Section 5.1, the maximum price for each seller * * * shall not exceed the price charged at that point (the given shipping or delivery point) by him on the last sale of the same product to a purchaser of the same class within 60 days prior to October 15, 1941.”

Sections 5.1 and 5.2 above mentioned, being inapplicable for the determination of complainant’s maximum prices, the next provision, and the one upon which complainant relies, is Section 5.3.

Section 5.3 provides for the determination of a seller’s maximum price in accordance with the maximum price of another seller at the same point. In this case, complainant contends that its maximum price should be determined in accordance with the maximum price at the same place of its supplier, the Warren Petroleum Corporation.

The provisions of Section 5.3 are as follows : “When a seller’s maximum price at a given shipping point for any petroleum product covered by this regulation cannot be determined under section 5.1 or 5.2, his maximum price at the particular shipping point shall be the highest maximum price determined under section 5.2 for the same shipping point of any seller of the same class to a purchaser of the same class. When a seller’s maximum price at a given delivery point for any such petroleum product cannot be determined under section 5.1 or 5.2, his maximum price at the particular delivery point shall be the highest maximum delivered price determined under section 5.2 for the same delivery point of [456]*456a seller of the same class to a purchaser of the same class.”

It is the claim of complainant that until the date of the order determining its maximum prices retroactively, to a date two years prior thereto, it had made sales of the natural gasoline in question at prices based upon ceiling prices represented to it by its supplier, the Warren Corporation, as its ceiling prices, and that it had ascertained by inquiries and by answers in writing from the Warren Corporation that such prices were actually its ceiling prices. It further asserts that Warren was of the same class of seller as complainant, and sold to the same class of customers. Proof of the foregoing, it is urged, requires the conclusion that complainant’s maximum prices are properly determinable in accordance with the maximum prices of the Warren Corporation, under Section 5.3 above mentioned.

To this argument, the Administrator replies that complainant was not of the same class of seller as Warren; that it did not sell to the same class of purchaser; and that, in any event, Warren’s maximum price had never been established under Section 5.2, as required by the provisions of Section 5.3 if complainant’s maximum prices were to be determined in accordance with Warren’s. With regard to Warren’s representations of its ceiling prices to complainant, the Administrator found that these consisted of mere general statements and were not proof that Warren’s maximum prices had properly been determined — and that, in fact, Warren’s alleged maximum prices as appeared in the letters to complainant had never been properly established under any provisions of the Regulation.

As to whether complainant is a seller of the same class as Warren within the intendment of Section 5.3, the Administrator, in his opinion accompanying the order denying the protest, held that “sellers, to be ‘sellers of the same class’, for the purposes of application of Section 5.3” were such, “only if at the point or points at which they sold in the period immediately preceding October 15, 1941, they customarily charged the same price, or approximately the same price, for the same product.

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Cite This Page — Counsel Stack

Bluebook (online)
153 F.2d 453, 1946 U.S. App. LEXIS 1942, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pacific-gas-corp-v-bowles-eca-1946.