United States v. Spokane Dry Goods Co.

264 F. 209, 1920 U.S. Dist. LEXIS 1179
CourtDistrict Court, E.D. Washington
DecidedMarch 13, 1920
DocketNos. 3364-3366
StatusPublished
Cited by4 cases

This text of 264 F. 209 (United States v. Spokane Dry Goods Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Spokane Dry Goods Co., 264 F. 209, 1920 U.S. Dist. LEXIS 1179 (E.D. Wash. 1920).

Opinion

RUDKIN, District Judge.

The indictments in these cases were returned under the act of Congress of October 22, 1919, known as the “Food Control and the District of Columbia Rents Act.” 41 Stat. 297, c. 80. The first section recites:

“That by reason of the existence of a state of war, it is essential to the national security and defense, for the successful prosecution of the war and for the support and maintenance of the army and navy, to assure an adequate supply and equitable distribution, and to facilitate the movement of foods, feeds, wearing apparel, containers primarily designed or intended for containing foods, feeds, or fertilizers, fuel, including fuel oil and natural gas, and fer[210]*210tilizer and fertilizer ingredients, tools, utensils, implements, machinery, and equipment required for the actual production of foods, feeds, and fuel, hereafter in this act called necessaries; to prevent, locally or generally, scarcity, monopolization, hoarding, injurious speculation, manipulation, and private controls affecting such supply, distribution, and movements; and to establish and maintain governmental control of such necessaries during the war. For such purposes the instrumentalities, means, methods, powers, áuthorities, duties, obligations, and prohibitions hereinafter set forth are created, established, conferred, and prescribed. The President is authorized to make such regulations and to issue such orders as are essential effectively to carry out the provisions of this act.”

By section 2 it is made unlawful, among other things, for any person “to make any unjust or unreasonable rate or charge in handling or dealing in or with any necessaries.”

The three indictments contain upwards of 200 counts, hut so far as material to our present inquiry all counts are the same, and are open to the same objections, if any. The first count of the indictment in case No. 3364 charges that the defendant did—

“knowingly, willfully and unlawfully make an unjust and unreasonable rate and charge in the handling and dealing in and with certain necessary articles of wearing apparel, to wit, one certain ladies’ coat, which said ladies’ coat had theretofore been procured by said defendant at a cost to defendant of the sum of twenty-one and !>s/100 dollars ($21.98), and which said ladies’ coat, upon the date aforesaid, the said defendant did then and there sell and dispose of at a certain sale shown by defendant’s ‘The Crescent’ sale slip, to wit, name, R. C. Dahlhjelm, bearing No. 12361 and No. 7, to a certain purchaser, a person to the grand jurors unknown, at the price and for the sum of forty-five dollars ($45.00); said selling price, rate and charge of forty-five dollars ($45.00) being then and there an unreasonable, unfair, and excessive price, the addition of twenty-three and 02/ioo dollars ($23.02) to the sum of twenty-one and °8/ioo dollars ($21.98), the cost to defendant of said ladies’ coat, being an undue, exorbitant, immoderate, excessive, and monstrous profit, and the said sum and price of forty-five dollars ($45.00) so extorted, exacted and required from said purchaser for said ladies’ coat being an unfair, unjust and unreasonable rate and charge in the handling and dealing in and with said necessary article of wearing apparel.”

Demurrers have been interposed to the several counts of the indictments on the ground that they fail to state.facts sufficient to constitute offenses against the United States. The objections to the indictments are twofold. First, because the act of Congress is invalid; and, second, because the indictments do not charge or allege when the goods were purchased or procured, or that the selling price was in itself unreasonable or unjust. Again, the objections to the act are twofold. The first objection goes to the power of Congress to enact such legislation in any form, while the second is based on the ground that the language of the act defining the crime is too' indefinite and uncertain.

[1] 1. Taking up first the objection to the form of the indictments, it is contended that, inasmuch as the date of purchase is not alleged, the mere difference between the purchasing and selling price of an article does not necessarily disclose an unjust or unreasonable charge for handling the same, because the owner is entitled to the full benefit of the increase in the value of his merchandise accruing from natural causes between the date of purchase and the date of sale. This.is perhaps true, but the indictments do not stop with the mere averment of [211]*211the difference between the purchasing and selling price. It is further charged that the selling price, rate, and charge was an unreasonable, unfair, and excessive price, and this latter averment, coupled with the averment showing the difference between the purchasing and selling price, brings the case clearly within the prohibition of the statute.

[2] 2. The importance of the first objection urged against the Food Control Act cannot be overestimated, as it challenges the power vested by the Constitution in the legislative and executive branches of the government in time of war and public danger. If I understand their position correctly, the contention of counsel for the defendants amounts to this: The war power of the federal government under the Fifth Amendment to the Constitution is only commensurate with the police power of the states under the Fourteenth Amendment, and inasmuch as the states are powerless to regulate prices in cases such as those now before the court under the Fourteenth Amendment the federal government is equally powerless to regulate such prices under the Fifth Amendment, even as a war measure.

It must be conceded that there is great force in this argument, and that it finds support in many adjudications and declarations of the Supreme Court. Thus, in Ex parte Milligan, 4 Wall. 2, 120 (18 I,. Ed. 281), the court said:

“Time has proven the discernment of our ancestors; for even these provisions, expressed in such plain English words, that it would seem the ingenuity o£ man could not evade them, are now, after the lapse of more than seventy years, sought to be avoided. Those great and good men foresaw that troublous times would arise, when rulers and people would become restive under restraint, and seek by sharp and decisive measures to accomplish ends deemed just and proper; and that the principles of constitutional liberty would bo in peril, unless established by irrepealaMe law. The history of the world had taught them that what was done in the past might be attempted in the future. The Constitution of the United States is a law for rulers and people, equally in war and in peace, and covers with the shield of its protection all classes of men, at all times, and under all circumstances. No doer-trine, involving more pernicious consequences, was ever invented by the wit of man than that any of its provisions can be suspended during any of the great exigencies of government. Such a doctrine leads directly to anarchy or despotism, but the theory of necessity on which it is based is false; lor the government, within the Constitution, has all the powers granted t® it, which are necessary to preserve its existence; as has been happily proved by the result of the great effort to throw off its just authority.”

And in the very recent case of Hamilton v. Kentucky Distilleries & Warehouse Co., 251 U. S. 146, 40 Sup. Ct. 106, 64 E.

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Cite This Page — Counsel Stack

Bluebook (online)
264 F. 209, 1920 U.S. Dist. LEXIS 1179, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-spokane-dry-goods-co-waed-1920.