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Fishgold v. Sullivan Drydock & Repair Corporation
154 F.2d 785
2d Cir.
1946
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*1 785 “good faith” judge district that the immaterial.5 arriving In at that conclusion we appropriate weight the admin interpretation.6 in istrator’s official This terpretation spoke a bonus employer “promises” “agrees” which the pay, “arranges” but also one which If, Administrator, pay. said the employer pays having a bonus “without * * * previously arranged” so, do count, then it does not but it if docs count “arranges” grant reg a bonus with ularity “may thereof amount application ascertained formu la.” That interpretation, which is not unr easonable,7 fits this case.

Affirmed. v.

FISHGOLD DRYDOCK & SULLIVAN RE- (GRANATA, PAIR CORPORATION Intervener). 196.

No. April 1, 1946. of Certiorari

Writ Granted See 66 S.Ct. 904. Appeals,

Circuit Court of Second Circuit. 4,

March 1946. 624, 138, 139, 1223, 134, 137, 316 1716, 140, U.S. 62 S.Ct. U.S. 65 S.Ct. 161; Ridge involving Corp. to cases “an identical Jewell Coal v. Local 6167, state of Mine facts.” No. Workers 5 Walling Youngerman-Reynolds 161, Cf. v. America, 169, 65 S.Ct. supra, 425, Co., Hardwood 1063; Security 325 65 Nierotko, Social Board v. 1242, Fishgold 1250. 637; Dry- 66 S.Ct. v. Sullivan Repair Corp., Cir., 6 Overnight dock & 2 154 Missel, F.2d Motor Co. 316 U. 572, 580, 581, 785. 1216, page S. 62 S.Ct. 17; Walling 7 Duquesne 86 L.Ed. 1682 note Cf. Warehouse Co. v. Rail- F, Payne, Board, Cir., v. Helmerich & U.S. 37 at Retirement road pages page 479, 481, 2d 487-488. note Skidmore v. Swift &

CHASE, Judge, dissenting. H. Stand- M. Goldstein William L. ard, City (Herman York both New Rosenfeld, City, counsel), New York Roy Granata. appellant Durham, City, of New Knowlton York respondent. Quinn, Atty., S. T. Vincent U. Brook Sonnett, Atty. lyn, (John N. Y. F. Asst. Gen., Robert L. and Searcy Werner L. Sp. Gen., Johnson, Atty. Assts. Goetz, C., of Washington, Cecelia D. counsel), the United movant. Pressman, C., Washington, D. Lee Cammer, of City (Eu New Witt & York Donner, Frank gene Cotton both of C., counsel), Washington, D. Con Organizations, of Industrial amicus gress curiae. Cohen, City, of New York Samuel J. Mulholland, Clarence M. Mulhol-

Frank L. McEwen, of company this former land, H. him to Willard 21, 1944, & Mc- August tion on Robie has never Toledo, (Mulholland, Ohio Ohio, counsel), Toledo, controversy dismissed here at Ewen, him. Viz., bar Ass’n, arises amicus because on three occasions: Executives’ Railway Labor *3 April 9, April 11, May on 17 to and from curiae. May inclusive, give him it refused CHASE, HAND, and Before L. work, enough because not there was FRANK, Judges. Circuit days those occupy on hands. In so preferred welders, refusing not it other HAND, Judge. L. veterans, higher shop who had a of Industrial Union Local 13 of the plaintiff: than the accordance this Shipbuilding of Workers Marine and agreement company and between the judgment award- appeals America from a plaintiff’s that, position the union. The of plaintiff loss ing damages for his to the veteran, 8(b) (c) prior- as a and him § lay-offs by em- wages of his two ity except over all his fellows other vet- Repair Drydock ployer, and Sullivan ; position erans the union’s is that Corporation, against ac- alone the merely sections restored him to intervened, brought. union tion was The place hierarchy in the which would defence; charged and itself with the had, have if he had ab- been on leave of Railway Labor Execu- during period sence of service. The of In- Association and tives plaintiff judge held with the and union briefs, as Organizations filed dustrial have appealed. proper appeal only the raises amici. The interpretation (b) (c) and of subdivision B Subsection of is the § Training 8 of the and Service of Selective § operative source privilege of the on which (§ 308(b) in 1944 Act of as amended relies; plaintiff it reads as follows: 308(c), Appendix, and 50 U.S.C.A. employer person “Such shall restore such quote margin).1 facts as in the The position position to such or of like judge as follows. found seniority, pay and status the em unless ployer’s changed circumstances have so plaintiff employ entered the impossible it to make or unreasonable to do Repair Corporation Drydock and Sullivan position” so.” “Such nowhere defined welder, 21, 1942, and as a December except position tempo as “a other employed May steadily such until rary position, employ Army. of when he inducted em into ployer.” Taking He July itself, until and was then served clause it discharged, honorably beyond and received a cer- seems to us debate that it not 8(a), described 50 intended that gain tificate the kind seniority. Appendix 308(a). At that time It will be .U.S.C.A. observed that the grant been, was, concededly since in the alternative: and has ishe to he “restored” welder; original position, qualified as or a first-class and to one of “like position person 1 “8(b) seniority, to a In the case of such status,, of like and training pay who, perform employer’s such unless order circumstances changed position, service, so impossible left or leaves has as to make and temporary position, or than a unreasonable do other so.” any employer employ (1) and who “8(c) Any person po- who is restored qualified certificate, (2) is still snch ceives provisions sition accordance with the position, perform duties such paragraph (A) (B) (b) of subsection reemployment application (3) makes having shall be considered as been on fur- days ninety after he is relieved within lough during pe- or leave of absence training or from such service training riod and service in the land or continuing discharge hospitalization after forces, naval shall so be restored without year— not more than one seniority, par- loss shall be entitled to position employ “(A) inwas if such ticipate in insurance or other benefits of1 Government, Ter- States its the United employer pursuant fered to estab- possessions, or the District ritories Columbia, practices relating rules lished to em- person such shall be ployees furlough or leave of absence in position position or to a of like seni- such employer effect the time such pay; ority, status, and person forces, was inducted into such position employ discharged “(B) position if such inwas not shall be from such private employer, ©f a such shall within one without cause after such position such restore to such restoration.” which, pos- phrase It remains to consider pay,” whenever seniority, status reliance seniority” the chief means we understand “like phrase, is. sible. The before; opposite view. it of those take the seniority” as the “same seniority. any gain necessarily precludes “shall It declares the veteran position that, original if It follows position with such be shall be longer substitute open, the no restoration”; less, sen- no greater, of no interpret should, possible, far as But position. iority than the lost rest of the so as not to conflict that, implication true, there can section; un particular, to leave so as lost, but be original if the seniority, touched be restored available, the veteran *4 still difficulty in earlier defined. is There no would for that priority; in gain to it with a so, “discharge” permanent- doing means a if intend Congress not pre-suppose did that sep employment, end to the relation of complete nearly a be as substitute to the aration, dismissal; indeed and that original it was lost substitute for the ordinary meaning. example, the its For hypothesis absurd possible make to II, p. Dictionary (Vol. sub Oxford start we must face. Hence its I, “Discharge” “To relieve 3), title reads: not B proposition subsection of § that office; usually) (more of a to or seniority, up in step only grant did not office, employment; or dismiss service any. positively denied but “Lay with to cashier”: this distinction off,” p. during (Supplement, 8): period “A intention reads, (c) the confirms Subdivision temporarily dismissed workman B which a subsection disclosed. As so work; part to leave that restore allowed probably to be understood would activity year during position season only same to the veteran that particular game partly That business or was inducted. he held when he unfair; completely suspended; an off-season.” was, however, thought to be service, Congress were It that used seems to us “dis there in the while he was i.e., charge” in sense: the veteran personnel this that changes likely to be such job was of his back, to be for the same might he find him- assured when that he came which he was be had had junior he self to those over whom —a —for drafted; this, by but remedy job that which he was priority he when left. To very implies— in “restored” —as that word bill was amendment made while an subject was be to the same conditions status Congress, the same he job subject, had, to which the old had been been he he that would have had only exception it should be while that better furlough “on or leave absence” so far dif- leave of absence for the that service. How far he might improve position, he it. The value of that had remained as fered appear; vary. surance work, but would indeed In actively does not a closed at little, presupposed presumably clearly that a would add the amendment union would not member might allow a Having there be. difference anyway. interim way cause In an declared how the veteran’s considered,” Congress open shop true, the same position “shall be would be if it partly unionized, without were added should that he be “restored been, union; seniority.” purpose but, were loss of Had the whenever for protection had not pre only not the veteran that reason to insure put, his being turned steps upon long more the vented as he should lose not himself, leave, behaved and that was an advan had but than if he been ladder tage importance. no mean We do top, go to the can- also that should we proportion what know in industry ex- conceive would have unions; are not in but their number is cer words, “without loss pressed itself and, tainly very large, even seniority.” They express have no such them, clause was of value they are implications their direct- meaning, and enough to give purpose; numerous it a opposite; ly disclose a concern say nothing possibility that statu possible against his demotion inconsistent tory protection may important sup any implied promotion. belief in his plement protection.. to union that, we are these reasons satisfied ex- For concluding phrase cept for the of subdivi- consider When we [S] situation at no can be (c) there doubt textual- the time that sion Act passed Sep-— tember, the right construction the union’s 1940—it ly extremely improbable one. rects grant proper attorney, meant to district “if rea- that any sonably meas- as we are satisfied” broader that a veteran “is en- Act, had be- titled” to pear “ap- the nation uring it. It is true that benefits deeply attorney” disturbed its defenseless and act as come him to en- ready; begun force position, rights; Attorney to make and the Gen- eral, war, appears still was not at the issue but it from his intervention action, amicus whether it ever would in this hung balance has read the law like carry If we ourselves back Director of Selective be war. On the Service. hand, autumn, other adopted recall that summer and National War Labor Board presidential campaigns opposite of both in In that parties view Re Scovill upon commitment Manufacturing have avoided W.L.R. particu- arbitrators; question, each several of and that candidate its and the larly troops Department insisted that should be sent Solicitor of Labor did original act limited serv- guid- overseas. an instruction for the improba- year, ice and it was federal in dealing most ance conciliators war (16 481). ble within time we should veterans L.R.R. soil; fight upon our own called find, So far as we can these are proved, as indeed the event *5 only interpretative rulings that have as peace September, still 1941. Con- yet appeared by officialswho' can be said to gress calling young men colors charged duty have been in admin adequate preparation give them an Act; istering and can hardly it be said our defence, but with no forecast of the they have had that consistency to appalling experiences lat- which were yield which judgment. we our We undergo. Against background er forget do not the canon which the proposal likely it is not would then plaintiff invokes is not confined to decisions accepted have priority, industrial been partes, inter like those of the Federal length of regardless their of em- Commission, Trade merce the Interstate Com ployment, unmarried men—for most Commission, Board, the Labor thirties, part thirty under men in the —over Court; the Tax it extends also the in fifties, forties or wives and chil- who terpretations officials, charged of with the dependent upon Today, dren them. in the duty enforcing of statutes. Skidmore v. light happened, of what has Co, 134, 161; & 323 Swift U.S. 65 S.Ct. granted may appear altogether then in- States, Great Northern Co. v. United R. services; adequate equivalent for their but 262, 529, 315 U.S. 62 S.Ct. 86 L.Ed. 836. we proper; to decide what now weight Whether to be to such reconstruct, may, are to as best rulings is regulations less than to for the purpose Congress- what was the used of when it of, cases, in, conduct has decisions contested 8(c) the words which and § § expressly decided, though never been were cast. Swift, supra, intimated Skidmore v. plaintiff argues, however, that, The 139, 164; page page 323 U.S. 65 S.Ct. at gardless original scope, of their these sec- Judge Duquesne see Frank’s dissent in and tions have in event administrative Board, v. Railroad Warehouse 2 Retirement interpretation legislation, and later tak- Cir, 473, 148 F.2d 485-487. There is in en meaning on the which he claims. We making deed a basis for such a distinction consider first in- administrative public officer, terpretations. 8(g) Section directs Di- charged law, enforcement rector of Service Selective to establish a different from one who must decide a dis "Personnel Division” which shall “render pute. doubt, If there is a fair duty replacement aid in the in their former present case for the side which he * * of, positions securing tions or in represents, court, and leave decision persons have satisfactorily completed tribunal, upon or the administrative any period of their training and service responsibility lies the If decision. Act,” 5, under 1944, and on March plausible construction, will, the surrenders a it Director may, forever; memorandum (No. issued it at least surrendered IV, 190-A, Part 4(b)), yet may right. which read: “A it rulings Since such veteran who has been reinstated his need not have detachment of judicial, displaced decision, former cannot be semi-judicial may an- or properly ground bias, other on the carry that the latter would seem has that they should greater rights.” authoritative; Section 8(e) di- not be this sort 790 it, man, Costello, revert to Mr. wished to Director rulings were the thereupon Act as un- Colonel read the bar, case at Attorney General stood, colloquy which we Board and a ensued Labor the War the decisions of like speak- quote margin.2 He was then the Solicitor the direction of ing absence may, con- of the fact veteran’s that the Department. Be that Labor from the should be counted cededly all considerations authoritative; leave, furlough; and, cautionary, and not reserve, upon whether his that this hearers assumed end, whatever after before, or responsibility of with what he had said consistent supplanted ultimate courts rests the entirely certain. is not means: statute declaring what a its last word recognized in Supreme Court However, we cannot Corp. Ridge Coal subject. upon the Jewell event assimilate the situation to 161, 1063. We Local, 325 65 S.Ct. v. U.S. frequently resort aid which courts so greater doubt in much should have to interpretation ambiguous language;' the i.e., are, even to a yield, we were to than we change ad reenactment without interpretation administrative uniform more than exists interpretation. McCaughn v. ministrative here. 488, 492, Hershey U.S. Chocolate 283 510, 1183; the 51 National whether question remains the There States, December, Co. v. Lead of' amendment U.S.C.A.Appendix 40 S.Ct. L.Ed. Massachu the extension 15, 1946, to be Mutual Life Insurance Co. United May setts whole act until 269, 273, position. 77 L. embodying Director’s taken alone, amendment, only extended 739. The -rationale that canon must Ed. be, taken might apply either a veteran within which the time for reinstatement *6 days ninety forty existing to with rul amendment are familiar begin incorporate period ings, that or whatever mean to and made that days, them, continuing they may “hospitalization be. second termination of tenable; hardly not more would should hesi discharge for say might hospital. Of to that as in a tate enact year,” if he was than one change provisions in- it regulatory law with which no other itself this indicated tent; concededly acquaintance. ruling been had On the but the Director’s hand, December, suppose, are to months other if we for over six made Moreover, Keesling, contrary, Colonel of the that absence of to the 1944. evidence office, part his testi- in one Director’s is familiar existing with all ad of the Com- mony subcommittee interpretations, before is ministrative content the Di- Military Affairs, stated mittee on accept change, them when it makes no were, His later remarks position. rector’s it the force of that would seem that as ambiguous, vary sumption and we are

perhaps, somewhat the circum example, impression For final stances. successive recen as to the in doubt left may Internal Act testimony have sions of the Revenue are the as a whole which his result Treasury detailed conferences between the After had first subcommittee. he left on Congress; subject, presiding chair- committees of mentioned “Mr. It he serves Johnson: is not clear that the time that “Mr. Johnson: And seniority. se- means former does affect his (cid:127)in armed forces not Keesling: niority? “Colonel Would not Keesling: right. seniority He loss of if a nonveteran increased That “Colonel n without seniority. by years seniority crediting loss be restored years’ employee seniority mean he does with 2 that Harness: Does “Mr. seniority years spent has ac- the 2 the armed forces? lose of the not might his'induction, up quired time of “Mr. Johnson: It mean without to the gets ac- that has loss of what ho had before. that he Keesling: way plus working, That him while he was “Colonel not the crued Army? have construed it. he served the time Keesling: right. not The latter “There has been difference “Colonel opinion groups far as the labor Whose construction “Mr. Plarness: says any person The act are concerned. ? Keesling: Ours. The lan- is restored shall be restored without “Colonel seniority.” says guage It loss of is clear. loss shall be restored without seniority. that, in good Supreme to assume and there is reason should reach the Court as soon changed, possible. exist so far as statute in even less ing regulations and formal expressing We cannot conclude without terpretations expressly That affirmed. hope, may realized, not be in the case may proper inference well he may that our not be as in- decision taken n recensions, accompanied general all dicating any indifference to claims by ordinarily are continuous inti these those who stood nation hour administrative of mate consultation with hazard, of its need at the and so often with seem hazardous to ficers. But it would loss, of all dear. that life holds carry a conclusion situation reversed; complaint Judgment dismissed. here bar. far concerns So actual conveyed Congress, information it was CHASE, Judge (dissenting). .at most which we confined to the occasion I cannot and (c) believe discussed, gratuitous for would be amended, the Selective Service Act as suppose that the same information ever U.S.C.A.Appendix 308(b, c), has been Military reached Committee of the Senate by Congress. effect intended aside, ambiguity That Affairs. has been mean that an honor construed impute here, .(cid:127)arises if we Con were to ably discharged veteran is entitled gress knowledge administrative timely application restored to his old rulings, rulings as arises from the them job, having, here, such a job continued selves, for the decisions of the National exist, keep it for a unless Labor Relations Board of the Solicitor his employer cause Department preceded Labor both party has not contract with a third oth suppose 8(c). amendment of To n Congresswas agreed. erwise That seems to be too nar set of familiar with rul put upon row a construction to a remedial ings and other would base ought interpreted statute which to be lib fact, great less in and involve the canon erally favor of the veterans for whose uncertainty already er attaches to its benefit it was Light enacted. See Boone v. use, which —be it said 'all deference-— ner, 87 L negligible. -is no means We should be .Ed. 1587. clutching phan at straws and relying *7 toms, suppose if we were to that the re-en is no controversy There real between the very appellee spe actment of this section with employer its and his ap- who took no cific peal was amendment intended to previously effect and who had so restored to the n vital change position in industrial veteran held; relations. Cer he had formerly tainly kept we should be unwarranted in had him continuously believ at work in it for ing that months; would have about made so seven presum- far and would reaching change ably without notice to those have continued to do for at least n whohad an interest equal year by veterans action but intervening themselves —the Finally, unions. as in union. The ap- latter which is sole pellant case the effect rulings of unaccom insisted that had contractual right panied by to have veteran statute, displaced amendment of when- necessary ever said, make room for all is only when the canon is non- help veteran union member who doubt; had been em- and, when the intent is in otherwise ployed every a month after about and a half before allowance the differences plaintiff originally been hired and actually arisen, which have we cannot yielded the employer to this demand. The “bring ourselves to abandon construc ability plaintiff to do work is un- adopted. tion we As for judicial in questioned and it is even intimated that terpretation, this is the appeal; first and gave any cause for discharge. only decisions in the district courts are apparently equally divided. Whirls v. The Thus clear cut issue is whether Con- Co., D.C.S.D.Ohio, Trailmobile 64 F. gress by this statute intended to make sure Supp. against take; view we those who required were by Barnett, Olin Industries Inc. v. D.C.S.D. their terminate non-temporary employment Ill., F.Supp. is in accord. The and serve in the armed forces should also fact that are agreed ourselves not by cau be entitled it to resume their former tions us that we should not be too employment, sure of equivalent, or the and keep conclusion; our obviously and the really for a their honorable dis- important matter question is that service, provided they were accordingly fill or shall naval willing to forces” and and and able continued to be seniority, (and) suffer whether no “loss of satisfactorily; or position participate entitled or oth- and oth- insurance appellee Congress merely left this pursu- right to er benefits offered nothing by but the ers like him practices re- count- ant established rules and forces armed have their time lating employees furlough or leave employers on old ed worked for their as time displaced employer at the time of absence with the they competed others not as such such forces. statute, jobs, ones inducted into old for their ” * * * veteran Thus far returned standards good, whatever according to employee third but the-status an employers and some competition their given a furloughed leave of impose upon has been fit to party saw contract absence actual termination of em- if the correct construction And them. ployment agree I his insurance let Congress intended to the statute be that like is to be de- or other beneficial status try readjust them- returned veterans regulations only termined under the rules might with an un- they selves as best not, applicable inducted thereto when he was status,” impaired “seniority when job purpose that for this the statute with and jobs, an actual there were such no loss it to done the basis of quires could live least on pay actual on deference, only seniority away. while Yet say must year, I virtually respect seniority count made to which have words were used negatively no loss and then in that the statute so restrict out of be read should be relative diminu- suffered meaning. its absence. Then Con- tion of it 8(b) (A) provided first provide gress, not that much content to the statute for the kind (B) more, 8(c), vet- also discharged honorably veterans should tions get. They eran another and different kind (1) their should be dependent any way which was made positions. providing In former employee- upon an status as mentioned. Then seniority was not even rights employee as such equiva- give the (2) in the alternative to is an- furlough or leave of absence. positions former lent to men whose independent right added and conferred non-existent, provided that the vet- plain people clear and words which who- position seniority, given a “of like eran be express unmistakably thought want to customarily their status, just quoted pay.” The words They use. "and shall not are “posi- not some relative defining position from such without- figurative line of men available tion” in a cause within after such restora- position which the vet- work but a mean that alter- tion.” Unless these words “a actually eran could work. words honorably discharged has been- an given seniority, status, pay” like entitled', *8 equivalent setting in their are but keep may in- under the statute he at work job just good equal pay.” “a as More- year provided it for a there is such work- over, alternative definition of the his; gives and he no done cause for plays proper part any- tion no this case discharge, nothing. I submit mean way appellee since the was restored to position and mention it old I Congress prohibiting not was here mere- have been on as it seems to justification majority relied some discharge employment ly from but dis- construing 8(c) as the § position.” did from “such It not' It has there done. that the free, employer “lay-off” leave the re- provision decisive is found. will, employed or shift him veteran from position as good, to another not one having plain After made it in § deprive particular him of otherwise get job that the veteran should his old back pay kind work and good, Congress one as had' be offered next in 8(c) equally plain gave made clear lan- been “restored.” a- veteran guage privileges security position year that certain went with the this before he They job. simply are of kinds. The ousted two first is could be from it because- position right that the carries with it someone contract with employer had a employee which, statute, re-employed of the former to thus but for the him a>. as right deny be treated been “on senior it. To the- the furlough right during during or leave absence work “discharge” of training year pe- and service the land from it for the

793 Congress passed deprivation calling finally such ac- And this statute riod of his may for anything honorably else the benefit alike of dis- “lay-off” or one tion charged fact veterans who alters the had been name neither taken choose employment more stable what a choice is called justifies nor the action. Such recognized temporary. simply pur- There is no what should discernible labels pose stat- not to attempt treat them all to circumvent futile good why reason should not ute. in- intended make a man who was plain Moreover, seemingly me if this to ducted secure in his closed may simple language fairly be said to job during the first after his return ambiguity lurking first some have had at open shop inducted man from an by Di interpretation of it in rector of Selective One much would be. need other would Service should be adjustment period facing this before up present pur enough to clear that competition the full brunt of job. per Director in poses. made It was I think has word and act well required forming duties the statute him purpose provide demonstrated its perform though not of course bind equality of respect treatment the courts it entitled ing gardless private contracts made by respect customarily given is now same like anybody. interpretations statutes other ad I dissent. perform acting officers ministrative duty. interpretation That of their ance alone persuasive be most for was would least a reasonable one. Skidmore v. Co., 161; 323 134, & U.S. 65 S.Ct. Swift Transp. Missel, Overnight Motor Co. v. 572, 1216, 1682; 316 62 86 L.Ed. U.S. S.Ct. Great Northern R. v. United Co. 836; 315 62 S.Ct. U.S. NORTHWESTERN ENGINEERING v. CO. Scott, Cir., Baze 106 F.2d 365. But v. UNITED STATES. it doesn’t stand alone. After it was well No. 13153. made, widely known that it had been Congress by Appeals, Eighth re-enactment of 8(c) Court Circuit. change gave potent without evidence in April 11, 1946. words themselves that it addition 8(c) it said in what when it said meant “Any posi who restored to a provisions tion in accordance paragraph (A) (B) (b) of subsection ** * shall not be from such cause within aft er restoration.” See United States v. Co., Midwest Oil 673; McCaughn Hershey L.Ed. Choc. 75 L. Ed. States, National Lead *9 Co. United S.Ct. 496; Massachusetts Life Ins. Mut. Co. v. 77 L.Ed. 739. Undoubtedly Congress could statute private override contracts between em- ployers employees or those acting them. It did so when under the Selective Service holding positions Act men of em- ployment were could, inducted. did, displace others later whenever neces-

sary to make room qualified for veterans for and seeking positions. their old

Case Details

Case Name: Fishgold v. Sullivan Drydock & Repair Corporation
Court Name: Court of Appeals for the Second Circuit
Date Published: Apr 1, 1946
Citation: 154 F.2d 785
Docket Number: 196
Court Abbreviation: 2d Cir.
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