The United States appeals from an order of the district court setting aside a jury verdict finding appellee R. C. French, former Marshal of the City of St. Louis, guilty of two counts of affecting interstate commerce by extortion, in violation of the Hobbs Act, 18 U.S.C. § 1951. For the reasons stated below, we reverse and remand to the district court with directions to vacate the judgment of acquittal and hold it for naught, to reinstate judgment of conviction pursuant to the jury verdict and to sentence appellee accordingly.
Appellee, who had been indicted by a grand jury on five counts of violating the Hobbs Act, 18 U.S.C. § 1951, and one count of violating the Federal Anti-Racketeering *1071 Act, 18 U.S.C. §§ 1961, 1962(d), 1963, was tried before a jury which returned a verdict of guilty on two counts of violation of the Hobbs Act. Appellee had moved for acquittal at the close of the government’s evidence, at which time the court reserved its ruling. After the jury’s verdict, the court granted appellee’s motion, vacated appellee’s conviction and entered a judgment of acquittal on both counts.
In the two counts upon which the jury had found appellee guilty, he was accused of violating the Hobbs Act
1
by affecting interstate commerce through extortion under color of official right as city marshal. The district court was of the view that the government failed to prove either essential element of the crime: that appellee committed “extortion” as that act is defined under the Hobbs Act, and that the extortion affected commerce and thereby came under the coverage of federal criminal law. A failure by the government to prove either of these essential elements of the crime would entitle appellee to an acquittal.
See Stirone v. United States,
1. Hobbs Act Extortion
At the time of the alleged extortion, appellee’s official duties as city marshal included collection of bail bonds which had been forfeited when a defendant failed to appear in the municipal courts to answer the charges against him. If the bond was forfeited, the surety on the bond would be required to pay to the city the amount of the bond plus court costs.
The counts upon which appellee was found guilty involved four forfeited bonds, each in the amount of $500 with $12 court costs, and each naming Claude Torrey, a professional bail bondsman, as surety. It is undisputed that appellee did not obtain the full $512 for the city in settlement of any of the four bonds; instead, appellee received from Torrey two checks payable to the city, one for $636 to settle three of the bonds and another for $262 to settle the fourth bond. Torrey testified that as a quid pro quo for making these settlements, appellee required an additional cash payment for his own personal benefit of $100 per bond, which Torrey paid to appellee in a lump sum of $300 cash at the time of the $636 settlement and in $100 cash at the time of the $262 settlement.
Torrey also testified that he would have been unwilling to make the cash payments but was induced to pay by appellee’s offer to settle the bonds for less than $512 a piece, something appellee would not do without the cash payment. 2 3 According to *1072 Torrey, appellee claimed to have the power to settle the bonds. Although the evidence indicated that appellee did not in fact have legal authority to settle the bonds for less than $512, it is undisputed that appellee did accept the reduced payments and took no further steps to enforce the bonds. Taking the evidence in the light most favorable to the verdict, we therefore regard it as established that appellee took personal cash payments in return for accepting reduced amounts on behalf of the city to settle defaults.
The Hobbs Act contains a definition of prohibited extortion as “the obtaining of property from another, with his consent . under color of official right.” 18 U.S.C. § 1951(b)(2). “Extortion ‘under color of official right’ will ... be established whenever evidence shows beyond a reasonable doubt ‘the wrongful taking by a public officer of money not due him or his office, whether or not the taking was accomplished by force,' threats, or use of fear.’ ”
United States v. Brown,
We cannot agree that as a matter of law no extortion was proven. There was evidence that Torrey paid one sum of money— $212 or $262 — -by check to the city to settle a defaulted bond, and a second sum of money — $100 — in cash to appellee as a fee for making the settlement. The jury could have believed that Torrey’s debt to the city was satisfied by payment of the amount of the check which was accepted in settlement of the bond; indeed, appellee himself testified that he accepted $212 and $262 payments to settle the $512 default obligations of bondsmen. Even if appellee did not have lawful authority to make such a settlement, the evidence indicates that the city did not pursue the obligation further after the settlement was paid. If the settlement check for $212 or $262 to the city in fact put an end to appellee’s obligation under the bond, the additional cash payment would not be money due appellee’s office, but would be a wrongful fee not due appellee or his office. Taking the evidence in the light most favorable to the government, the jury could have concluded that appellee received a wrongful fee for himself, beyond the amount the city sought to collect.
*1073
There is no doubt that Hobbs Act extortion “under color of official right” includes this kind of corrupt use of public office by the official to obtain such a wrongful personal fee. While the legislative history referring directly to the “color of official right” provision is not helpful on this point,
4
the legislative debates on the Hobbs Act suggest that Congress intended to adopt the common law definition of extortion as it had been adopted by the states, with especial reference to the law of New York, from which the Hobbs Act’s language was taken.
See
91 Cong.Rec. 11843 (remarks of Rep. Michener), 11900 (remarks of Rep. Hobbs), 11909 (remarks of Rep. Summers), 11910 (colloquy of Reps. Robeson and Springer), 11913 (remarks of Rep. Rhea), 11914 (remarks of Rep. Russell) (1945).
See also United States v. Enmons, supra,
Appellee’s conduct in this case is not meaningfully distinguishable from that found to be extortion in an old New York case,
People v. Whaley,
Moreover, even if the full $512 were actually due the city on each bond, it would be extortion for appellee to seek and obtain a $100 fee for himself personally as a
quid pro quo
for refraining from collecting the full amount he should have collected on the bonds. In general, a public officer who corruptly seeks a payment in return for short-changing his duty to enforce the law has committed extortion. “It matters not whether the public official induces payments to perform his duties or not to perform his duties . . . So long as the motivation for the payment focuses on the recipient’s office, the conduct falls within the ambit of [Hobbs Act extortion].”
United States v. Braasch,
Such conduct is no less extortion because the “victim” may in some sense receive an economic benefit when the public official neglects his duty.
See United States v. Butler,
It is the wrongful purpose of the taking under color of official right that makes appellee’s conduct extortion under the Hobbs Act. The Supreme Court in
United States v. Enmons, supra,
Furthermore, in
Enmons
special factors may have entered into the Court’s consideration of strike violence by union members seeking higher benefits, for the text of the Hobbs Act and legislative history demonstrate a Congressional purpose not to restrain strike activity.
Id.
at 400-408; see 18 U.S.C. § 1951(c) (no implied repeal under the Hobbs Act of other federal labor laws governing strikes). Therefore, the Hobbs Act does not cover coercive action by unions in pursuit of legitimate labor goals of higher wages or increased benefits, but the Hobbs Act coverage may nevertheless extend to other kinds of wrongful taking of money to which the extortioner may also have a rightful claim. Thus, one court has held in a Hobbs Act case that the
Enmons
holding did not support a defense that the allegedly extortionate acts of the defendants, members of the Seminole Nation, were in pursuit of a rightful claim for reparations on behalf of the Nation.
United States v. Warledo,
II. Effect on Commerce
The Hobbs Act does not prohibit extortion generally, but rather penalizes “[whoever in any way or degree obstructs, delays, or affects commerce or the movement of any article or commodity in commerce, by . extortion . . . .” 18 U.S.C. § 1951(a). As the district court recognized, “[i]f the resources of a business which affects interstate commerce are depleted and diminished as a result of extortion, then interstate commerce is affected,”
United States v. Rabbitt,
There was no dispute that Torrey in the course of his bail bond business purchased articles, such as gasoline and certain office supplies, that had been in interstate commerce. However, the district court found that, although Torrey did purchase supplies for his bail bond business from interstate commerce, the resources available to Torrey to make such purchases were not depleted by any payments to appellee. The court reasoned that, because Torrey’s total payments to the city and appellee amounted to less than the face amount of the bonds that would have been due otherwise, Torrey had more, not less, money to purchase items in interstate commerce as a result of his payment to appellee. On this basis, the district court held that the government failed to prove an effect on interstate commerce under a depletion-of-resources analysis.
For reversal the government argues that the Hobbs Act prohibits all extortion affecting commerce, not just extortion which has an “adverse” effect.
6
We have some difficulty with this theory. Although the Hobbs Act on its face prohibits all extortion which “in any way or degree . affects commerce,” the legislative history of the Act strongly indicates that Congress intended to protect the free flow of commerce and prevent exaction of any unlawful tribute from interstate commerce, and indicates no Congressional intent whatsoever to punish activity absent some adverse effect on interstate commerce.
See
H.R. Rep.No.238, 79th Cong., 1st Sess. (1945),
reprinted in
[1946] U.S.Code Cong. Service pp. 1360, 1370; 91 Cong.Rec. 11839-848, 11899-922 (1945) (debate in House of Representatives on Hobbs Act). Moreover, the government’s theory seems to suggest that a robbery or extortion automatically would affect commerce as long as the victim engages in transactions involving articles which have been in interstate commerce. Courts have found such an effect where the evidence shows some depletion of resources which the victim would otherwise have used in transactions involving articles which had been in interstate commerce,
7
or even in some cases where the evidence showed only a possibility that the money taken would have been used in such transactions.
8
The
*1077
government’s theory in this case would base federal jurisdiction upon a more tenuous nexus with interstate commerce, as there was no testimony that, absent the extortion, Torrey would have spent less or more money on the articles which he regularly purchased from interstate commerce, or that failure to pay appellee off would threaten any consequences which would result in an increase or decrease in commerce.
9
The government’s theory would, therefore, extend Hobbs Act coverage to any money taken by robbery or extortion from anyone who engaged in transactions involving goods which had been in interstate commerce, a reading of the Hobbs Act which in practicality would extend federal jurisdiction over just about any robbery or extortion. Such an assumption by the federal government of general jurisdiction over common law crimes traditionally covered by local law is something we would not lightly imply.
See United States v. Bass,
We note, however, that there is also support for the government’s position. The Hobbs Act “speaks in broad language, manifesting a purpose to use all the constitutional power Congress has to punish interference with interstate commerce by extortion . . . .”
Stirone v. United States, supra,
Torrey testified that he was acting as an agent for a New York insurance firm, Stiverson Insurance Company, which received a premium on the bonds he wrote. 10 Torrey further testified he wrote bonds on defendants who lived out of state and that he travelled out of state with some regularity in order to return defendants under his bonds who had fled. 11 We note that there was no proof any out-of-state firm was directly involved in the particular bonds mentioned in the counts upon which appel *1078 lee was convicted and no proof of interstate activity directly relating to these particular bonds. Nevertheless the evidence does support the conclusion that the alleged extortionate payments were taken from a business regularly and substantially involved in interstate commerce, and we think this evidence sufficient to bring appellee’s conduct under the coverage of the Hobbs Act.
Because the extortionate payments were extracted directly from an interstate enterprise, this case differs from a Hobbs Act prosecution of a public official who extorts money from a purely local enterprise, where the extortioner affects commerce by extracting funds that would have been used to purchase articles in interstate commerce. Under the Hobbs Act an indirect effect on commerce must be shown where the extortion does not directly involve an interstate enterprise. In the instant case by contrast the extortion directly affected interstate commerce, because the business from which payments were taken was itself engaged in interstate commerce.
United States v. Gates,
Furthermore, even if we were to conceive the entire extortionate transaction as a benefit to Torrey’s business, as appellee suggests, we still conclude interstate commerce was affected. The evidence indicates that Torrey did not lawfully have to make the cash payments to appellee; in some cases he went ahead and actually paid the full amount ($512) due on the bond. If appellee offered a reduced settlement of $212 or $262 to bondsmen in return for a wrongful $100 cash payment, appellee put those bondsmen willing to engage in corruption at a competitive advantage vis-a-vis any bondsman who would not make the cash payoff. By becoming involved with an enterprise in interstate commerce and creating an incentive to participation in corrupt practices, appellee affected the quality of interstate commerce if not its quantity.
Cf. United States v. Harding, supra,
Accordingly, the judgment of acquittal is reversed, and the case is remanded to the district court with directions to vacate the judgment of acquittal, reinstate the judgment of conviction based on the jury verdict, and to sentence appellee.
Notes
. The Hobbs Act provides in relevant part:
(a) Whoever in any way or degree obstructs, delays, or affects commerce or the movement of any article or commodity in commerce, by robbery or extortion . . . shall be fined not more than $10,000 or imprisoned not more than twenty years, or both.
(b) As used in this section—
(2) The term “extortion” means the obtaining of property from another, with his consent, induced by wrongful use of actual or threatened force, violence, or fear, or under color of official right.
(3) The term “commerce” means all commerce between any point in a State and any point outside thereof; . and all other commerce over which the United States has jurisdiction.
18 U.S.C. § 1951.
. The government contends that an additional factor in the extortion was appellee’s failure to place Torrey’s name on a “bad bond list” of bondsmen who had failed to pay the city the amount due on forfeited bonds. Were Torrey not to have made the cash payoffs to appellee, asserts the government, appellee would have placed Torrey’s name on the bad bond list either for failure to pay the four bonds involved in the accusations against appellee, or some other bond defaults Torrey had failed to satisfy. However, the counts of the indictment upon which appellee was found guilty charged only that appellee had extorted the cash payments in return for failing to enforce specific bonds. *1072 Moreover, the government’s brief on this point below did not present this theory and the court below did not consider it. As we disagree on other grounds with the district court’s analysis of the extortion issue, we therefore do not address the “bad bond list” theory advanced by the government.
. The district court characterized appellee’s conduct as “embezzlement” in distinguishing the conduct from extortion under the Hobbs Act. On appeal the government argues that appellee’s conduct was not embezzlement. We are concerned only with whether or not the conduct was Hobbs Act extortion, regardless if it met the definition of some other local or common law offense, and regard the district court’s discussion of embezzlement as an illustration of how the money taken by appellee could have been rightfully due appellee’s office, no matter how wrongful appellee’s own conduct may have been. Our disagreement with the district court is that we think the jury could have found that appellee took money not rightfully due his office, and we express no opinion on whether appellee’s conduct constituted embezzlement under local law.
. The only legislative history we have found for the “color of official right” language is a colloquy on the floor of the House of Representatives during debate on the predecessor of the Hobbs Act, H.R.Rep.No.653, 78th Cong., 1st Sess. (1943), which was passed by the House of Representatives but failed in the Senate. “The remarks with respect to that bill . . are wholly relevant to an understanding of the Hobbs Act, since the operative language of the original bill was substantially carried forward into the Act.”
United States
v.
Enmons,
. Appellee relies on two other cases which do not support his position.
United States y. McNeive,
United States v. Adcock,
. Moreover, argues the government, Torrey’s wrongful cash payments to appellee temporarily depleted Torrey’s resources, even if in the long run Torrey would have had more resources because of his avoidance of his legitimate debt to the city. We do not understand how Torrey’s aggregate resources were temporarily depleted by his cash payments to appellee, as the evidence indicates that Torrey settled the bonds at the time of the extortion and therefore no time interval occurred between the extortionate payment and receipt of the net financial benefit of the settlement.
.
E. g., United States v. Blakey,
.
See, e. g., United States v. Cerilli,
. The government at oral argument seemed to urge that, if Torrey did not pay appellee off, Torrey may have been disqualified as a bondsman for failure to satisfy his obligation under the bonds. The government seems to suggest that Torrey would then be placed on the “bad bond list,”
see
note 2
supra.
We regard this theory as speculative, for the record suggests to the contrary that Torrey would have likely paid the bonds in full if faced with no other alternative than disqualification. (Indeed there was testimony that, when appellee at one time attempted to increase the settlement totals to about $400, including both payment to the city and to appellee personally, Torrey decided to pay the whole $512 instead because income tax savings by deducting the full $512 outweighed the savings of paying a reduced amount part of which would be a nondeductible cash payoff.) Therefore, we cannot conclude that appellee obtained the payments under an implied threat to disqualify Torrey as a bondsman and thus curtail that part of Torrey’s business which involved interstate transactions.
Cf. Stirone v. United States, supra,
. Torrey testified that he wrote bonds as an agent for a St. Louis insurance firm. The record does not make clear if the New York firm or St. Louis firm or both firms underwrote the bonds in question in this case.
. Torrey testified without contradiction that he wrote 6 to 8 bonds per year on out of state defendants and travelled 3 to 4 times per year out of state to apprehend bail jumpers whom he had bonded. According to Torrey, he wrote 50 to 75 bonds per year or else 2 to 3 per week.
