Porter v. Royal Packing Co.

157 F.2d 524, 1946 U.S. App. LEXIS 2750
Court of Appeals for the Eighth Circuit·Decided October 24, 1946·No. No. 13354·Published·Cited by 1 cases

Opinion

WOODROUGH, Circuit Judge.

This action was brought by the Price Administrator of the Office of Price Administration under Section 205(a) and (b) of the Emergency Price Control Act1 against defendant packing corporation engaged in slaughtering and wholesaling meat in St. Louis, Missouri, in Price Zone 5, for injunction and statutory damages on account of alleged violations of Revised Maximum Price Regulation No. 169, by charging in excess of maximum prices in described sales of beef and veal carcasses and wholesale cuts in eastern markets outside Price Zone 5, between January and July, 1944. The defendant admitted that it had through innocent mistakes made such overcharges amounting to $185.37 in certain of the sales but denied further violations or liability, and there was a trial to the court without a jury upon the rest of the Administrator’s claim of excessive prices charged aggregating $6,928.18 and for injunction. The court awarded judgment against defendant for the amount confessed without increased damages, but found for defendant on all the contested issues and dismissed that part of plaintiff’s action. The Administrator appeals from the judgment adverse to him.

The sales of defendant alleged to be violative of the 'Act were made by defendant to “hotel supply houses” (which were not purveyors of meals) in New Yo^k, Philadelphia and Boston, located in a price [525] zone other than Price Zone 5, and it appears without dispute that the prices charged and collected by defendant were twenty-five cents per hundred weight higher than the maximum prices permitted by the applicable regulations to be charged by slaughterers in Price Zone 5 to purchasers located in the other zone for the carcasses and wholesale cuts and delivery thereof by rail from the slaughterer’s distribution point to the purchaser. But it also appears that the slaughtering plant of defendant is located some five miles from the railroad loading dock to which defendant trucked the meat in question and defendant sought to justify its addition of twenty-five cents per hundred weight to the maximum prices on the ground that the cost .to it of trucking the meat in its own trucks over the five miles from its slaughtering plant to the railroad loading dock amounted to that sum approximately. Although the twenty-five cent charge does not appear as an item on any of the invoices of the goods which defendant produced from its own files in response to plaintiff’s subpoena and which plaintiif offered in evidence, defendant’s witness testified over plaintiff’s objection that a rubber stamp impression had been made on each of the invoices sent to the customers reading: “Above price includes twenty five cents per hundred weight transportation charge allowed by OPA.”

It appears that prior to the sales in question the defendant had disposed of its product locally in the usual course of its business and had not sold it to purchasers in eastern markets, and it is apparent that the plant of the defendant (five miles from the railroad loading dock) is not in the same position to serve the eastern markets as the St. Louis packing houses which have railroad sidings and loading docks on their •own premises. Equalizing the positions by adding trucking charges to sales prices would obviously tend to divert business from usual regulated channels. The amount of meat included in the challenged sales is 2,697,126 pounds.

But defendant’s contentions are (1) that the regulations should be construed to mean that it was permitted to make the twenty-five cents addition to maximum prices which it made, or (2) that the regulations are so ambiguous on the point that defendant should not be held for violation, and (3) that in any event agents of the Administrator informed the defendant that the regulations permitted it to make the addition to its sale price and that such information was justifiably relied on and believed by defendant as the interpretation of the Administrator. There is and can be no dispute on the record that if defendant’s plant had been provided with railroad loading dock on the premises the amounts charged on the sales would have been in excess of the permitted prices in the amounts claimed by plaintiff.

The regulations disclose that the maximum selling prices prescribed therein for slaughterers are made to depend upon the zones in which slaughtering is done, and that transportation allowances to purchasers in other zones are to be added to the base price at the slaughterer’s “distribution point.” That point is defined in the regulations : “Definitions applicable to beef. * * * (5). Distribution point includes a packing or slaughtering plant, packer’s branch house, wholesaler’s or jobber’s or hotel supply house’s warehouse, car route unloading station.” Section 1364.455(a) RMPR 169.

Upon reading the definition in its context we can discern no reason to doubt that defendant’s packing or slaughtering plant in St. Louis was its distribution point from the location of which the maximum price had to be fixed for the sales in question. That is the point from which defendant distributed its product generally and is the only point which it is shown to have had for making distribution, and that is the distribution point specifically included in the definition.

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Porter v. Royal Packing Co., 157 F.2d 524, 1946 U.S. App. LEXIS 2750 (8th Cir. 1946).

157 F.2d 524 (Porter v. Royal Packing Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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