United States v. Stirone

168 F. Supp. 490, 47 L.R.R.M. (BNA) 2065, 1957 U.S. Dist. LEXIS 2333
CourtDistrict Court, W.D. Pennsylvania
DecidedDecember 5, 1957
DocketCrim. A. 14871
StatusPublished
Cited by25 cases

This text of 168 F. Supp. 490 (United States v. Stirone) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Stirone, 168 F. Supp. 490, 47 L.R.R.M. (BNA) 2065, 1957 U.S. Dist. LEXIS 2333 (W.D. Pa. 1957).

Opinion

MILLER, District Judge.

Following trial and conviction for a violation of § 1951 of Title 18 U.S.C.A., the defendant Nicholas Stirone has filed motions for arrest of judgment, for acquittal and, in the alternative, for a new trial. The substance of the single count indictment was that the defendant, a union official, obstructed, delayed and affected interstate commerce and the movement of materials in interstate commerce by the extortion of $31,274.13 from William G. Rider. The extortion was alleged to consist of the obtaining of money by defendant’s wrongful imposition on the victim of a fear of economic loss. 18 U.S.C.A. § 1951(b) (2). Rider, a supplier of ready-mixed concrete, had obtained a valuable subcontract to furnish the concrete requirements for the construction of a new plant at Allenport, Pennsylvania, for Pittsburgh Steel Corporation. The principal contractor on the project was Ragnar-Benson Company, which began construction in September 1951. Rider operated a batching plant at Belle Vernon, Pennsylvania, on the premises of the Duquesne Slag Products Company from which he was required to purchase the sand and slag aggregate used in manufacturing the concrete. According to the government contention, the defendant, in the company of Dierker, the president of Duquesne Slag Products Company, visited Rider at his batching plant shortly after September 13, 1951. It was alleged that while the three were seated in an automobile the defendant made an unlawful demand for payment of $.50 on every cubic yard of concrete furnished under the Ragnar-Benson contract as a price for Rider’s continuing to hold the contract. Rider, called as a witness by the government, testified that when the demand was made he "got mad” and left the automobile after which Dierker joined him, persuading him to agree to the defendant’s proposal and telling him that an adjustment would be made in the price . of slag. Following, Rider’s consent to the proposal,' defendant allegedly told him he would keep Rider out of labor trouble. Numerous checks were given to the defendant periodically from April 1952, until January 1954. The payments were entered on Rider’s books as commissions. The defense countered with an alibi and with a contention that the payments represented true commissions as consideration for the defendant’s agreement to use his influence with Ragnar-Benson to secure the subcontract mentioned above for Rider.

Conceding that the evidence must now be viewed in a light- most favorable to the government, United States v. Migliorino, 3 Cir., 1956, 238 F.2d 7, 10, the defendant contends that the evidence produced by the government at the trial was not sufficient to support the verdict of guilty. He argues first that the alleged extortion was not shown to have affected, obstructed or delayed commerce in any substantial way and second, that the alleged extortion payments were not shown to have been made by Rider because of fear.

In the indictment it was charged that the defendant by his coercive actions obstructed, delayed and affected interstate commerce and the movement of materials and supplies — i. e., sand, in interstate commerce. It was then proved at the trial that sand used by Rider in manufacturing ready-mixed concrete and purchased from Duquesne Slag Products Company had without question been transported in interstate commerce, and secondly, that steel articles produced at the plant after construction had been transported in commerce to the centers of the appliance and automotive industries outside the State of Pennsylvania. A sufficient foundation for introduction of both kinds of proof was laid in the indictment.

Defendant’s denial that interstate commerce was affected by his actions is based in part upon an argument that interstate commerce ended with the delivery of the sand in Pennsylvania; that the -interstate character of the sand *496 was lost when it was delivered to and stored by Duquesne Slag Products Company and Rider; and that the sand lost its identity as a separate article of commerce when it was mixed with other ingredients to form a new product, ready-mixed concrete. The conclusion is said to follow that the present prosecution is founded upon a forbidden attempt to exert federal control over purely local matters — manufacture of ready-mixed concrete and the performance of a building subcontract. The answer to defendant’s contention is that the power of Congress to regulate commerce is plenary and the power to regulate includes the power to protect commerce “no matter what the source of the dangers which threaten it.” National Labor Relations Board v. Jones & Laughlin Steel Corp., 1937, 301 U.S. 1, 37, 57 S.Ct. 615, 624, 81 L.Ed. 893. Racketeering affecting interstate commerce is clearly within the federal control, United States v. Green, 1956, 350 U.S. 415, 421, 76 S.Ct. 522, 100 L.Ed. 494, and commerce may be affected even though the actual movement of goods has ceased and the character of the goods altered in the hands of the consumer. Since the act of Congress was intended to insure the free flow of articles in interstate commerce, the only criteria which this court may properly employ to determine whether the act is applicable are whether the channels of interstate commerce have been used and whether the free passage of articles therein has been threatened. The court correctly told the jury that if the government’s facts were believed, interstate commerce had been affected by the conduct of the defendant. Cf. United States v. Lowe, 3 Cir., 1956, 234 F.2d 919, 922-923, certiorari denied, 1956, 352 U.S. 838, 77 S.Ct. 59, 1 L.Ed.2d 56. That statement was based upon a premise that a deliberate act which tends to prevent articles from being used once they have reached their destination after being shipped in interstate commerce dams up the stream of commerce and delays, obstructs and affects interstate commerce as surely as though the same act had cut off the supply at its source. Nick v. United States, 8 Cir., 1941, 122 F.2d 660, 668, certiorari denied, 1941, 314 U.S. 687, 62 S.Ct. 302, 86 L.Ed. 550; Hulahan v. United States, 8 Cir., 1954, 214 F.2d 441, 445, certiorari denied, 1954, 348 U.S. 856, 75 S.Ct. 81, 99 L.Ed. 675.

Defendant also urges that the “new construction” doctrine prevents consideration of the interstate shipment of products manufactured at the plant following its completion in determining whether the extortion here affected interstate commerce. That doctrine appears no longer to be controlling in cases arising under the Federal Employers’ Liability Act, 45 U.S.C.A. § 51 et seq., and the Fair Labor Standards-Act, 29 U.S.C.A. § 201 et seq., where-it arose. Southern Pacific Co. v. Gileo, 1956, 351 U.S. 493, 76 S.Ct. 952, 100 L.Ed. 1357; Mitchell v. C. W. Vollmer & Co., Inc., 1955, 349 U.S. 427, 75 S.Ct. 860, 99 L.Ed. 1196. Nor was it considered in Hulahan v. United States, 8 Cir., 214 F.2d 441, under circumstances similar to the instant case.

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

Related

United States v. Sellers
275 F.R.D. 620 (D. Nevada, 2011)
United States v. Woodruff
941 F. Supp. 910 (N.D. California, 1996)
United States v. Ruth Debolt
9 F.3d 110 (Sixth Circuit, 1993)
United States v. Blair
762 F. Supp. 1384 (N.D. California, 1991)
United States v. Reyes
510 F. Supp. 150 (D. Arizona, 1981)
United States v. Hobert Puryear Keen
509 F.2d 1273 (Sixth Circuit, 1975)
United States v. Howe
353 F. Supp. 419 (W.D. Missouri, 1973)
United States v. Peter W. Weber
437 F.2d 327 (Third Circuit, 1971)
Charles Joseph Battaglia, Jr. v. United States
383 F.2d 303 (Ninth Circuit, 1967)
Nicholas A. Stirone v. United States
341 F.2d 253 (Third Circuit, 1965)
Hurtt v. Stirone
206 A.2d 624 (Supreme Court of Pennsylvania, 1965)
State v. Halko
193 A.2d 817 (Superior Court of Delaware, 1963)
United States v. Johns-Manville Corporation
213 F. Supp. 65 (E.D. Pennsylvania, 1962)
United States v. Irving Tolub
309 F.2d 286 (Second Circuit, 1962)
United States v. Laurelli
187 F. Supp. 30 (M.D. Pennsylvania, 1960)
Stirone v. United States
361 U.S. 212 (Supreme Court, 1960)
United States v. Kramer
172 F. Supp. 288 (W.D. Pennsylvania, 1959)
United States v. Nicholas A. Stirone
262 F.2d 571 (Third Circuit, 1959)

Cite This Page — Counsel Stack

Bluebook (online)
168 F. Supp. 490, 47 L.R.R.M. (BNA) 2065, 1957 U.S. Dist. LEXIS 2333, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-stirone-pawd-1957.