JAMES ALGER FEE, District Judge.
This action was filed by plaintiff on his own behalf and as assignee of the claims of other employees of defendant in cookhouses operated by defendant near its logging camps, based upon the provisions of the Fair Labor Standards Act of 1938, 29 U.S.C, A. § 201 et seq. Pre-trial conferences were held and a pre-trial order was signed by the court. Subsequently, the cause was tried by the court without a jury.
The pre-trial order was drafted jointly by the attorneys for the respective parties and is here set out in full as an excellent example of such an order.1 The agreed facts [627]*627are concisely stated and the issues are clear cut for decision, and documents necessary for the determination were marked and listed therein. Such an outstanding consolidated pleading requires special commendation of the draughtsmen.
Shortly stated, the question is whether these employees are covered by the provi[628]*628rsions of 7(a) of the Fair Labor Standards Act of 1938 or are specifically exempt therefrom by the provisions of Section 13.
. Even in an establishment where the employer is engaged in commerce or in the production of goods for commerce, a par[629]*629ticular employee there who is not so engaged does not fall under the act. Specific exemption is given to all employees “engaged in any retail or service establishment the greater part of whose selling or servicing is in interstate commerce”. 29 U.S.C.A. § 213(a) (2). The applicability of this exemption depends according to orthodox in[630]*630terpretation upon “whether the particular establishment possesses the characteristic of a retail or service establishment”.
The particular employee, then, is not within the act if he is not engaged in commerce or the production of goods for commerce, and is specifically exempted if the establishment in which he works is mostly selling or servicing in intrastate commerce.
The cook, dishwasher or waiter employed by a company to feed a crew producing logs for interstate shipment is an integral part of the crew and is producing goods for commerce under the definition of the act, where the company furnishes the food and makes no deduction therefor from the wages of the timber workers. Philadelphia, Baltimore & Washington. Railroad Company v. Smith, 250 U.S. 101, 39 S.Ct. 396, 63 L.Ed. 869, although under a different statute, is persuasive by analogy upon this point.
However, that decision throws no light upon the clear-cut exemption granted by this Act. To the existence of the exemption, the court now turns.
The restaurant, the cafeteria and the roadside diner are each a typical example of a service establishment which is local in character and renders a service to private individuals for direct consumption at a retail price. (Interpretative Bulletin No. 6, Sections 23 and 24). Even though a cafeteria is operated in a factory by employees of a common employer with the factory workers who are producing goods for commerce, it may still be a service establishment. (Interpretative Bulletin No. 6, Section 39).
There are several factors pertinent to each of'these establishments. A cookhouse is a restaurant or roadside diner and, therefore, a typical service establishment. A service was rendered in a physically separate establishment where meals were sold: at retail to, and the facilities of the establishment were placed at the disposal of,, private individuals for direct consumption and use. Persons not in the employment of defendant or companies under contract with-defendant were served upon the same terms, as persons so employed, except that the price was higher for the former. Employees of logging companies under contract with defendant were served. There was no requirement that defendant’s employees pa-' tronize either cookhouse. Those employees who were served in the cookhouse were charged a price for the meals eaten, which [631]*631in the aggregate sustained the establishment but was not above cost. These payments were deducted from the employees’ wages.
Obviously, if either of these cookhouses were operated by an entirely independent concern, it would be designated as a restaurant and would fall in the class of a retail or service establishment. Such a restaurant would do the majority of its selling or servicing in interstate commerce, irrespective of the fact that meals were sold to the employees of one company only. This factor highlights a fundamental problem. The timber worker is a member of the public. As to meals, he is himself a consumer and purchases food at retail as any other member of the consuming public. This is true whether he is employed or unemployed. The fundamental characteristic of a restaurant is sale at retail to the ultimate consumer in intrastate commerce.
But in this case one circumstance should establish the cookhouses as service establishments. The employees in the woods and the union stipulated that these should be operated at cost and should be self-sustaining. Clearly, the employees actually producing goods for commerce recognize thereby that the cookhouses are maintained for their service and convenience. Under this clause, the burden of a.ny increased wages to cookhouse employees would fall upon those who were engaged in producing goods for commerce. The latter are not required to patronize the cookhouse but it is there for their service if they so desire.
If the buckers and fallers were compelled to eat at a cookhouse and the meals were furnished as a part of the pay, a different situation would be presented. These skilled woodsmen who are paid by the hour and who are not boarded by the company must buy food and service thereof. Any increase in the price of board at the cookhouse will be deducted from the money paid them.
To these factors applicable to both cookhouses, there are special circumstances which relate to the establishment at Glen-wood. Although that facility is unquestionably a convenience to the company in keeping the crews fed, it is probably no more so than if it were under entirely independent control. Certainly, it cannot be regarded as a necessary adjunct to defendant’s business. This cookhouse caters to persons not in employment of defendant or companies under contract with it. These persons are comparatively few and are charged a higher price. But there is an independent facility, a lunch counter, also located at Glenwood, which is in competition. While this lunch counter could not under present conditions take care of all the trade were the cookhouse closed, its employees are exempt from the operation of the Act, and the possibility of expansion is a circumstance of weight.
Many employees here own their homes and are thus free from the necessity of boarding outside. Some employees live in other places and own cars. These likewise have a choice.
This cookhouse falls under Section 39 of Interpretative Bulletin No. 6:
“Many concerns provide facilities for their employees. In some cases a company operates in its factory a cafeteria or store which is physically separated from the remainder of the plant and is conducted in the same manner as commonly recognized retail or service establishments which are not affiliated with the company.
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JAMES ALGER FEE, District Judge.
This action was filed by plaintiff on his own behalf and as assignee of the claims of other employees of defendant in cookhouses operated by defendant near its logging camps, based upon the provisions of the Fair Labor Standards Act of 1938, 29 U.S.C, A. § 201 et seq. Pre-trial conferences were held and a pre-trial order was signed by the court. Subsequently, the cause was tried by the court without a jury.
The pre-trial order was drafted jointly by the attorneys for the respective parties and is here set out in full as an excellent example of such an order.1 The agreed facts [627]*627are concisely stated and the issues are clear cut for decision, and documents necessary for the determination were marked and listed therein. Such an outstanding consolidated pleading requires special commendation of the draughtsmen.
Shortly stated, the question is whether these employees are covered by the provi[628]*628rsions of 7(a) of the Fair Labor Standards Act of 1938 or are specifically exempt therefrom by the provisions of Section 13.
. Even in an establishment where the employer is engaged in commerce or in the production of goods for commerce, a par[629]*629ticular employee there who is not so engaged does not fall under the act. Specific exemption is given to all employees “engaged in any retail or service establishment the greater part of whose selling or servicing is in interstate commerce”. 29 U.S.C.A. § 213(a) (2). The applicability of this exemption depends according to orthodox in[630]*630terpretation upon “whether the particular establishment possesses the characteristic of a retail or service establishment”.
The particular employee, then, is not within the act if he is not engaged in commerce or the production of goods for commerce, and is specifically exempted if the establishment in which he works is mostly selling or servicing in intrastate commerce.
The cook, dishwasher or waiter employed by a company to feed a crew producing logs for interstate shipment is an integral part of the crew and is producing goods for commerce under the definition of the act, where the company furnishes the food and makes no deduction therefor from the wages of the timber workers. Philadelphia, Baltimore & Washington. Railroad Company v. Smith, 250 U.S. 101, 39 S.Ct. 396, 63 L.Ed. 869, although under a different statute, is persuasive by analogy upon this point.
However, that decision throws no light upon the clear-cut exemption granted by this Act. To the existence of the exemption, the court now turns.
The restaurant, the cafeteria and the roadside diner are each a typical example of a service establishment which is local in character and renders a service to private individuals for direct consumption at a retail price. (Interpretative Bulletin No. 6, Sections 23 and 24). Even though a cafeteria is operated in a factory by employees of a common employer with the factory workers who are producing goods for commerce, it may still be a service establishment. (Interpretative Bulletin No. 6, Section 39).
There are several factors pertinent to each of'these establishments. A cookhouse is a restaurant or roadside diner and, therefore, a typical service establishment. A service was rendered in a physically separate establishment where meals were sold: at retail to, and the facilities of the establishment were placed at the disposal of,, private individuals for direct consumption and use. Persons not in the employment of defendant or companies under contract with-defendant were served upon the same terms, as persons so employed, except that the price was higher for the former. Employees of logging companies under contract with defendant were served. There was no requirement that defendant’s employees pa-' tronize either cookhouse. Those employees who were served in the cookhouse were charged a price for the meals eaten, which [631]*631in the aggregate sustained the establishment but was not above cost. These payments were deducted from the employees’ wages.
Obviously, if either of these cookhouses were operated by an entirely independent concern, it would be designated as a restaurant and would fall in the class of a retail or service establishment. Such a restaurant would do the majority of its selling or servicing in interstate commerce, irrespective of the fact that meals were sold to the employees of one company only. This factor highlights a fundamental problem. The timber worker is a member of the public. As to meals, he is himself a consumer and purchases food at retail as any other member of the consuming public. This is true whether he is employed or unemployed. The fundamental characteristic of a restaurant is sale at retail to the ultimate consumer in intrastate commerce.
But in this case one circumstance should establish the cookhouses as service establishments. The employees in the woods and the union stipulated that these should be operated at cost and should be self-sustaining. Clearly, the employees actually producing goods for commerce recognize thereby that the cookhouses are maintained for their service and convenience. Under this clause, the burden of a.ny increased wages to cookhouse employees would fall upon those who were engaged in producing goods for commerce. The latter are not required to patronize the cookhouse but it is there for their service if they so desire.
If the buckers and fallers were compelled to eat at a cookhouse and the meals were furnished as a part of the pay, a different situation would be presented. These skilled woodsmen who are paid by the hour and who are not boarded by the company must buy food and service thereof. Any increase in the price of board at the cookhouse will be deducted from the money paid them.
To these factors applicable to both cookhouses, there are special circumstances which relate to the establishment at Glen-wood. Although that facility is unquestionably a convenience to the company in keeping the crews fed, it is probably no more so than if it were under entirely independent control. Certainly, it cannot be regarded as a necessary adjunct to defendant’s business. This cookhouse caters to persons not in employment of defendant or companies under contract with it. These persons are comparatively few and are charged a higher price. But there is an independent facility, a lunch counter, also located at Glenwood, which is in competition. While this lunch counter could not under present conditions take care of all the trade were the cookhouse closed, its employees are exempt from the operation of the Act, and the possibility of expansion is a circumstance of weight.
Many employees here own their homes and are thus free from the necessity of boarding outside. Some employees live in other places and own cars. These likewise have a choice.
This cookhouse falls under Section 39 of Interpretative Bulletin No. 6:
“Many concerns provide facilities for their employees. In some cases a company operates in its factory a cafeteria or store which is physically separated from the remainder of the plant and is conducted in the same manner as commonly recognized retail or service establishments which are not affiliated with the company. In these cases, the goods or services are sold for cash to the employees, and the store is normally open to the general consuming public. The employer caters to the needs and wants of the employees viewed as part of the general consuming public and not merely as employees. * * * ”
There is a sharp differentiation between the conditions at Glenwood and those which prevail at Camp 2. The latter camp is quite isolated. It is seventeen miles from Glen-wood. Only a small number of the employees have homes there. Practically it is very difficult for the employees of defendant and companies under contract with defendant to take meals elsewhere. The great majority, in fact, do eat at the cookhouse. Unquestionably, it is more nearly vital for the company to have this eating place there in order to prosecute the production of goods for commerce. There is no independent facility at this camp, and as a practical matter, it would probably be difficult to find any one to embark upon such a business without some favorable arrangement with the company. Although there are exceptions, practically all the patronage of this cookhouse consists of employees of defendant and companies under contract with it.
It is possible to view this establishment as an adjunct of the business of the company, necessary for the production of goods for commerce and the employees as vital to the logging operation.
The Administrator has adopted this view and has issued a ruling which by its terms [632]*632apparently covers the situation. This interpretation, in part, reads:
“In these cases the employer does not operate an adjunct which is unrelated to the principal business but the furnishing of the facilities is an integral part of the principal operations. The employer does not satisfy the wants of the employees as part of the general consuming public. Deductions for these facilities are normally made from the cash wages received by the employee. The facilities are not made available to the general public. In these cases, there will not be a separate retail or service establishment within the exemption. Thus, for example, isolated lumber and mining camps operate cookhouses and bunkhouses for employees. These cookhouses and bunkhouses do not serve the general public but are an integral part of the lumber or mining operations.” Section 40, Interpretative Bulletin No. 6.
The interpretation is subject to criticism on several bases. First, a service establishment does not change its character even if it is in an isolated spot and of great practical convenience to the employer. Second, the employees of defendant and employees of companies under contract with defendant are the “general public” here, purchasing goods and service at retail, even though' the price is deducted from their wages. Third, the skilled workers ■producing goods for commerce are subjected to a greater burden than they would be if working in a settled community, since the cookhouse is to be self-sustaining for the benefit of workers. Fourth, if the employer were to allow an independently controlled establishment to operate a cookT house here, the skilled worker would pay retail prices at a higher scale and could not longer exercise an influence on the conduct of the cookhouse. Fifth, the policy should be to encourage employers to operate service establishments, such as gasoline filling stations, swimming pools and beauty parlors at cost to the employees, in order to increase the satisfaction of employees at isolated camps and'assist in producing goods for commerce.
Influenced by such considerations, the Administrator has previously taken an opposite position. During the pendency of this, case and owing apparently to developments in this controversy, the former ruling was repudiated, notwithstanding the fact that certain courts had made the previous pronouncement the basis for decision. Labates v. The Interstate Company,2 opinion January 29, 1941, Western District Tennessee, Western Division.
Each party has attacked the interpretation of the Administrator when it did not further his cause and has defended the ruling when it assisted his case. The court believes as a matter of policy the considerations above set out should control as to Camp 2, as well as at Glenwood. Clearly, on the other hand, the last ruling is a permissible one under the language of the statute. There is no question that the Administrator had all the facts before him when it was issued, although he held no hearing. In the nature of things the administrative agency is impressed with the remedial nature of the Act and the urge to carry out the general purpose of Congress. On the other hand, the court is of opinion that exemptions wisely placed in such legislation should be enforced for the protection of the public at large against bureaucratic regulation of matters entirely local in character, such as the purveying of food, to the end that conditions such as those denounced in Schechter Poultry Corp. v. United States, 295 U.S. 495, 55 S.Ct. 837, 79 L.Ed. 1570, 97 A.L.R. 947, shall not again prevail.
But the action of the court here is controlled by the declaration of the United States Supreme Court in United States v. American Trucking Associations, Inc., 310 U.S. 534, 549, 60 S.Ct. 1059, 1067, 84 L.Ed. 1345, where it is said:
“In any case such interpretations are entitled to great weight. This is peculiarly true here where the interpretations involve ‘contemporaneous construction of a statute by the men charged with the responsibility of setting its machinery in motion; of making the parts work efficiently and smoothly while they are yet untried and new” ”. [Norwegian Nitrogen Products Co. v. United States, 288 U.S. 294, 315, 53 S.Ct. 350, 77 L.Ed. 796.]
This holding is not affected by the fact that, in the consideration of the situation, the Administrator has radically changed position.
The court, therefore, determines that the cookhouse at Glenwood is a retail or service establishment and employees thereof are exempt, while that at Camp 2 is an adjunct to the production of goods [633]*633for commerce and employees therein are assisting in that process.
The remaining question is whether the scales of computation proferred by plaintiff or defendant be adopted. Neither of those offered by plaintiff is supported by any authority and each leads to results which the court considers unreasonable. On the other hand, the primary plan offered by defendant cannot be accepted because the court cannot find from the evidence that the contract between defendant and these employees contains the terms which are inherent in the basis for this plan. The second plan tendered by the defendant is apparently reasonable. Furthermore, it has the sanction of the Administrator and is adopted on the principles discussed above.
Findings and judgment in accordance herewith will be submitted.