156 F.2d 1000 | Emer. Ct. App. | 1946
Illinois Packing Company, the complainant here, is engaged in the slaughter of cattle and other livestock. During the period from November 1, 1943 to May 29, 1944 it sold 98% or more of the total dressed carcass weight of the cattle it slaughtered in the form of carcasses, whole sale cuts, frozen boneless beef (Army specification) (carcass equivalent) or ground beef. It claimed and was paid for the period from November 1, 1943 to April 30, 1944 the special subsidy of 80 cents per cwt. allowed to non-processing slaughterers by Amendment No. 2
On May 20, 1944 Defense Supplies Corporation notified the complainant that it considered that the complainant was not entitled to the special subsidy allowed to non-processing slaughterers since over 10% of its stock was owned by a-processor or purveyor of meat; Pfaelzer Brothers.
The complainant thereafter filed a protest against the regulation, as amended,
The complainant contends that the definitions in question are unlawful in that they narrow the class of nonprocessing slaughterers entitled to receive the special subsidy to an extent not authorized by the Directive of the Economic Stabilization Director
The question of the validity of the definitions contained in Section 14 of Regulation 3, as added by Amendment No. 2, was before this court in Earl C. Gibbs, Inc., v. Defense Supplies Corporation, 1946, 155 F.2d 525. It is true that stock ownership was not involved in that case, the ownership or control of the complainant by a processor or purveyor of meat being in that case based upon the fact that the latter was a creditor of the complainant which had made loans or advances to it in excess of 5% of its monthly sales. The objection which the complainant in the present case raises to the definitions under which ownership or control is conclusively presumed to result from stock ownership in excess of 10% apply with equal if not greater force, however, to the conclusive presumption that ownership or control results from indebtedness in excess of 5% of monthly sales. Likewise the objection that the definitions unlawfully narrowed the class described in the Economic Stabilization Director’s Directive applies equally to both cases.
Both groups of objections to the regulation, as amended, which are presented in this complaint were actually advanced and strongly urged by the complainant in the Gibbs case. After full consideration this court reached the conclusion that they were without merit. To that conclusion we adhere and we need add nothing to the discussion contained in the opinion of the court in that case. It is sufficient to say that the Gibbs decision squarely rules this case.
A judgment will be entered dismissing the complaint.
9 F.R. 1820.
8 F.R. 10826.
Section 14 of Regulation No. 3, as added by Amendment No. 2, provided, inter alia:
“Section 14. Extra Compensation for Non-processing Slaughterers of Beef.
(a) Definitions.
“(1) ‘Non-processing slaughterer of beef’ means an unaffiliated slaughterer as hereinafter defined who during six consecutive months of 1942, sold, and who currently sells, 98% or more, measured in dressed carcass weight, of the total beef produced from cattle slaughtered by him in all his establishments, in the form of carcasses, wholesale cuts, boneless beef or ground beef.
“(2) ‘Unaffiliated slaughterer’ means a slaughterer * * * who is not owned or controlled by a processor or purveyor of meat. * * *
“(4) ‘Own or control’ means to own or control directly or indirectly a part-. nership equity or in excess of ten per cent of any class of outstanding stock or to have made loans or advances in excess of five per cent of the other person’s monthly sales. * * * ”
59 Stat. 260, 15 U.S.C.A.. § 606b note.
8 F.R. 14641.