United States v. Sanders

99 F. Supp. 113, 1951 U.S. Dist. LEXIS 4050
CourtDistrict Court, W.D. Oklahoma
DecidedJuly 27, 1951
DocketNo. 4918-Civil
StatusPublished

This text of 99 F. Supp. 113 (United States v. Sanders) is published on Counsel Stack Legal Research, covering District Court, W.D. Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Sanders, 99 F. Supp. 113, 1951 U.S. Dist. LEXIS 4050 (W.D. Okla. 1951).

Opinion

WALLACE, District Judge.

This is a criminal contempt proceeding under Section 302(b) of the Federal Food, Drug, and Cosmetic Act of June 25, 1938, 52 Stat. 1040, 21 U.S.C.A. § 301 et seq. Judgment for defendant and contempt order denied.

Defendant, Tom G. Sanders, a resident of the State of Oklahoma, was perpetually enjoined by this court under authority of Section 302(a) of the Act on October 17, 1950, from “directly or indirectly introducing or causing to be introduced, and delivering or causing to be delivered, for introduction into interstate commerce, in violation of 21 U.S.C.A. § 331(a), a drug which is misbranded within the meaning of 21 U.S.C.A. §§ 352(b)(1), 352(b)(2), 352(e)(2) or 352(f)(1).” The injunction was not contested by defendant, and no testimony was heard. This court determined that defendant was engaged in interstate commerce, inasmuch as he had employed “runners” or “drummers” who would go into other states and take orders for the drug manufactured by defendant.

Upon issuance of the injunction order, defendant returned to his home at Wanette, Oklahoma, and continued to distribute and sell his “home remedy” in the same manner as before, with the exception that he no longer employed “runners,” but merely sold the drug to such persons as personally came [115]*115to his home and purchased the product there. Many of these customers were from out-of-state, and defendant was fully aware of this fact. The Government thereupon requested this court to cite the defendant for criminal contempt based upon an alleged violation of the injunction order. Defendant acknowledges and stipulates that the drug is misbranded as provided in the Act, and as alleged by the Government, but denies that the activities in which he is presently engaged constitute an introduction of the drug into interstate commerce, or a delivery of the drug for introduction into interstate commerce, as prohibited by this court’s injunction order.

It therefore appears that the determinative issue before this court is whether or not defendant, by selling his product to persons whom he knew to be residents of another state, but who personally came to defendant’s home to make their purchases, was engaged in interstate commerce. So far as this court can determine, this is a matter of first impression, and one upon which there are no cases directly in point.

At the time of the adoption of the United States Constitution, the “Commerce power” was relatively unimportant. However, it has so expanded in significance and application that, today, it is certainly one of the most powerful means of Federal regulation. There exists considerable controversy as to whether this expanded application is desirable for the protection of the nation’s welfare, or whether it is totally unwarranted and creates an invasion of the regulatory powers of the sovereign states. This difference of opinion is a political issue which is not before this court for determination. We have only to determine whether, under this unique factual situation, the defendant has engaged in interstate commerce.

An accurate, all-inclusive definition of interstate commerce has never 'been formulated by the courts. Nor do we attempt such a definition here, for its facets are far too numerous and diverse. However, it is the opinion of this court that certain essential elements must exist before the sales made by the defendant can be classified as constituting interstate commerce. In the case of Carter v. Carter Coal Co., 298 U.S. 238, 298, 56 S.Ct. 855, 867, 80 L.Ed. 1160, Mr. Justice Sutherland, in delivering the opinion of the court, stated:

“As used in the Constitution, the word ‘commerce’ is the equivalent of the phrase ‘intercourse for the purposes of trade,’ and includes transportation, purchase, sale, and exchange of commodities between the citizens of the different states.”

Thus we see that three fundamental elements must exist before the transaction becomes affixed with the character of “interstate commerce”. First, there must be the element of a sale or exchange. Second, the transaction must be between citizens of different states, or one which creates commercial traffic between different states. Third, there must be the element of transportation. In the case at bar we find that two of these elements have assuredly been satisfied; namely, there has been a sale between citizens of different states. The existence of the element of transportation is not so readily determined. To begin with, there is some question as to what is the requisite transportation. It is almost axiomatic that the transportation intended must be that between states, and not merely that within a single state. However, actual transportation need not have occurred before the transaction becomes endowed with the attributes of interstate commerce. It is enough that a party “sells and ships, or contracts to sell and ship, the commodity to customers, in another state * * Carter v. Carter Coal Co., supra, 298 U.S. at page 303, 56 S.Ct. at page 869. Defendant has not, since the rendition of the injunction order, personally shipped or contracted to ship any of his product to persons in other states. The Government takes the position that the mere culmination of a sale between citizens of different states constitutes interstate commerce, where the purchaser, to the knowledge of the vendor, may return to his native state with the product. This court cannot believe that such a broad application of the Commerce power was ever intended, nor that it is justified under the Constitution. It has previously been determined by the [116]*116Supreme Court that a product merely in the stage of production is not subject to the Commerce power even though it is fully intended that it shall subsequently be transported to another state. Carter v. Carter Coal Co., supra. Nor does this court believe that the mere sale of goods constitutes interstate commerce, unless there is an actual movement out of the state, or such is the purpose and intent of both parties in making the sale. However, the Government cites a number of cases which it contends bear out its assertion that defendant is engaged in interstate commerce. A few of the most important of these cases will be considered.

The Government cites the case of Dahnke-Walker Co. v. Bondurant, 257 U.S. 282, 42 S.Ct. 106, 109, 66 L.Ed. 239. In that case sale was made in Kentucky, the state of the vendor, to a citizen of the State of Tennessee, the product being delivered to the purchaser in Kentucky. The Supreme Court ruled that the transaction was in interstate commerce. From this, the Government has deduced a rule whereby all such sales between citizens of different states will constitute interstate commerce. However, counsel overlook the fact that delivery of the commodity in question was made on board the cars of a common carrier, in continuance of a long established practice whereby the commodity was to be immediately forwarded to the purchaser’s mill. The contract required delivery on board the cars of a public carrier for that very purpose. The Supreme Court considered these facts to be of the utmost importance, for Mr. Justice Van Devanter stated in the opinion of the court:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Martin v. Hunter's Lessee
14 U.S. 304 (Supreme Court, 1816)
Dahnke-Walker Milling Co. v. Bondurant
257 U.S. 282 (Supreme Court, 1921)
Carter v. Carter Coal Co.
298 U.S. 238 (Supreme Court, 1936)
United States v. Kaadt
171 F.2d 600 (Seventh Circuit, 1948)

Cite This Page — Counsel Stack

Bluebook (online)
99 F. Supp. 113, 1951 U.S. Dist. LEXIS 4050, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-sanders-okwd-1951.