Document: 334 U.S. 624 68 S.Ct. 1238 92 L.Ed. 1614 UNITED STATESv.JOHN J. FELIN & CO., Inc. No. 17. Reargued Nov. 18, 19, 1947. Decided June 14, 1948. Mr. George T. Washington, of D.C., for petitioner. Arthur L. Winn, Jr., respondent. Justice FRANKFURTER announced the judgment Court and delivered an opinion in which CHIEF JUSTICE BURTON concurred. 1 This is a claim just compensation, based on Fifth Amendment, by slaughterer whose meat products Government requisitioned war purposes. The Claims awarded damages above maximum prices fixed Office Price Administration such measured what that court deemed replacement cost property. 67 F.Supp. 1017, 107 Ct.Cl. 155. implications this ruling reach far, so we brought case here. 330 814, 864. 2 While immediate facts controversy are few undisputed, they can be understood only connection with recognized industry. Of these must take judicial notice inasmuch as translate idiom industry into vernacular English. Also, course, consider context rather intricate system price regulation O.P.A. 3 respondent was engaged business packing pork Philadelphia. It bought hogs Chicago, St. Louis, Indianapolis transported them to Philadelphia where were slaughtered converted various cuts products. sold retail dealers Philadelphia, it had also supplied agencies. 4 On January 30, 1942, President approved Emergency Control Act. 56 Stat. 23, 50 U.S.C.App. § 901 et seq., U.S.C.A.Appendix, seq. Accordingly, Administrator, series regulations, established dressed wholesale cuts. Revised Maximum Regulation 148, issued October 22, governed here involved. 7 Fed.Reg. 8609, 8948, 9005; 8 544. 5 To meet food needs entailed war, under authority Second War Powers Act, 176, U.S.C. Supp. V, 633, created Food Distribution Administration, Secretary Agriculture its head. E.O. 9280, 601 note, 10179. given assign priorities, 'allocate' governmental agencies private account, assist carrying out program Lend-Lease Act March 11, 1941, 55 31, 22 U.S.C.A. 411 carry task thus delegated President, each packer operating federal inspection priority order calling delivery proportionate part total quantity needed at particular time.1 A packer's quota ratio produced his plant production all federally inspected plants. 6 In conformity system, respondent, February 2, 1943, requested deliver 225,000 pounds lard Federal Surplus Commodity Corporation program. advised filled preference any other or contract lower priority, applicable ceiling prices. Insisting could no longer afford sell prices, refused make delivery. 1, exercising powers not questioned, requisitioning controversy.2 3, property duly seized respondent' house. 24, filed 'just compensation' taking Its $55,525, $16,250 $39,275 May 7, way preliminary determination compensation property, value $15,543.78 $25,112.50. These amounts award made final. Respondent accepted full payment lard; accept and, accordance statutory procedure rejection award, paid half it. instituted action recover additional amount when added $12,556,25, Government's valuation those cuts, would constitute taken. referred proceeding commissioner, who took evidence reported court. Upon basis report underlying evidence, found fact time place $30,293, concluded, matter law, proper measure taking. We heard argument last Term, after due consideration appropriate reargument Term.3 9 At outset important clear called upon decide. conventional criterion determining taken public use bring free, open market. E.g., Olson v. United States, 292 246, 255, 54 704, 708, 78 1236; Brooks-Scanlon 265 106, 123, 49 471, 474, 934; Vogelstein Co. 262 337, 340, 43 564, 565, 1012. But there market available. Here have but free market; controlled vital feature, selling price, creates problem case, assuming dogmatically disposed holding legally got goods compensation. passing abstract question whether lawfully whenever use. adjudicating precise issues emerge from case. 10 respondent's authorized taken, restricted Amendment enjoins. 181, 721. enforcing constitutional requirement 'the is, What has owner lost? not, taker gained?' Boston Chamber Commerce Boston, 217 189, 195, 30 459, 460, 725; McGovern New York, 229 363, 33 876, 57 1228, 46 L.R.A.,N.S., 391. Respondent's sole pecuniary equivalent situation consequential damages, sense term, urged necessary does theory that, protect good will, supply regular customers compelled purchase, slaughter, processing live hogs.4 Cf. States General Motors Corporation, 323 373, 382, 65 357, 361, 89 311, 156 A.L.R. 390; Petty Motor Co., 327 372, 377, 378, 66 S.Ct 596, 599, 600, 90 729; ex rel. Use Tennessee Valley Authority Powelson, 319 266, 281, 282, 63 1047, 1055, 1056, 87 1390. claims requisitioned. suffer, maintains, if offer satisfaction compensation.' burden therefore rests prove suffer receiving more than Marion R.V.R. 270 280, 285, 253, 70 585. 11 principal item pay hogs; then covered regulation, Chicago quotations industry; average hog $15.59 during 1943;5 $30,293. reaching conclusion below failed account decisive factors disposition 12 dealing arising transaction pertaining industry, cannot torn practically postulate slaughtering relevant true industry's 'Manufacturing operations do consist assembling raw materials purpose obtaining one finished product, separating breaking down (cattle, etc.) many parts, (dressed carcass) major parts further processed numerous by-products.' Kingan Bowles, Em.App., 144 F.2d 254. consequence, generally like fagot broken up simple, isolated pieces. See Greer, Packinghouse Accounting (Prepared Committee Institute American Meat Packers), passim. 'The accounting even complicated cattle, calf, sheep business, because involve greater carcass processes extending over considerable periods time.' Id. 33—34. 'joint cost' 'produces single product,' id. 213, result accountant far 'been able devise method yielding by-product joint-cost figures note mbody dominance arbitrariness guesswork.' Hamilton, Cost Standard Price, Law Contemp.Prob. 321, 328; cf. Greenbaum, Basis Property Shall Be Such Property: How Defined?, Tax L.Rev. 351, 356—359. 13 If, suggested argument, nothing articulated chop, edible inedible by-products characteristic might well represent collective derivative however, According estimate about 200 items (exclusive sausage products) Supplementary Statement Considerations Pike Fisher, OPA Desk Book 46,151. 'Most products,' Administrator found, 'are consumed cured state. Fresh products, chops fresh ham, 20 per cent vast moves rail. remaining 80 reaches consumer wide variety forms, including dry, dry cured, sweet pickled, smoked, cooked, baked canned.' 46,141. deserves noting included hams, bellies, picnics, salted fatbacks. 14 petitioner processing,6 him 100,000 refined pure lard. For administrative award.7 Admittedly, charged by-products. However, apportioning highly speculative.8 15 Since much speculative approximation guesswork entered cost, profit, naturally enough, almost continuous them. party controversies. July 17, protest against 148 consolidated 115 slaughterers regulation. calculations cut-out contended did allow sufficient margin hogs. rejecting protest, April ruling: interdependence phases establishments makes evaluation relationship between meats impossible except terms over-all financial position industry.' Matter Rapides Packing Opinions Decisions 243. 8, protested, again hogs, revision substantially ground second likewise rejected Administrator. Greenwood Plant, 296, 299. 16 Review Appeals sought,9 although first denial came shortly he now same contention. noteworthy margins challenged before been battle regulations.' Hyman Nathanson, Judicial Control: Battle Regulations, 42 Ill.L.Rev. 584. 17 considerations underlay Administrator's determinations most pertinent solution our problem. analysis profit loss data slaughterer's entire dependable fairness deduced. pointed figures, historically lost money sales.10 Since, sales whole profitable, sale losses 'more nature bookkeeping fully integrated views approvingly quoted Armour 529, 535. 18 both proceedings party, x plicitly furnished data. earlier proceeding, proof protestants. supra. finding: 19 three Protestants submitted sustain their individual hardship. One showed net $60,492.44 five months period ending 27, 1942; another $6,838.00 third submit statement balance sheet specifically so.' supra, 297. Not merely seem prospered control,11 respondent12 despite throughout continued buy prevailing derived meant value.13 21 Most pertinent, therefore, pronouncements matters became embroiled price-fixing litigation. carcass, lot carcasses, may determined quite satisfactorily; cut merchantable record lost, determine cuts.' p. pp. 43, 58, 61, 62. 'results adding profits merchandising departments,' 218, accurate formula costs operations. 44. old common law allegation purporting contradicted knowledge confessed demurrer.14 findings binding Court, treat starting point spurious finding 'fact' adjudicated very parties instant controversy, adjudication become verbal game. 23 There facts, Claims' function findings. ascertain meaning legal significance. 'replacement mode reached inescapably enmeshed clearly familiar particularly law. Where 'composite law,' Cedar Rapids Gas Light Rapids, 223 655, 668, 32 389, 390, 594, certainly hold erroneous. See, e.g., Washington Oregon R. Nav. Fairchild, 224 510, 528, 535, 539, 863. Even reviews State judgments involving 'must review independently factual commingled.' Oyama California, 332 636, 269, (and authorities therein cited.) Similarly, concurred two courts control decision 'facts significance too closely connected' standards ultimate questions inseparable applied.' Appalachian Electric Power 311 403, 61 291, 297, 85 litigation stipulated 'facts,' will disregard stipulation, applied below, stipulation obviously forecloses real Swift Hocking 243 37 287, 722. 24 prior parties, blind notice, unquesto ned interpret Claims. concluded spurious, i.e., non-legal, though actualities. And erred utilizing constituted 25 When regard Claims, fail establish proffered falls short commodities Government. As conflict indicates, debatable issue which, since can, avoid adjudicating. Spector Service McLaughlin, 101, 105, s.Ct. 152, 154, 101. 26 proving prove, light governing less left undisturbed process devised Congress assuring By losses, actual damage. Just practical conception, fiction. introduced findings, processed.15 reasonable allocations portion properly attributable neither alleged nor support maintained entails stand. 27 reversed directions enter exceeding $12,556.25, interest $25,112.50 date requisition, final Director Administration. 28 REED, whom BLACK MURPHY join, concurring judgment. 29 I agree FRANKFURTER'S opinion. concur reasoning reached. That holds entitled anything addition unless 'establish processed' 'determine Government.' Why show me. product If value, element value. Under circumstances illusory. Consequently believe perishable controlled-market conditions, constitutionally standard Five members express agreement relevant, factor, us, regarded unsatisfactory. assume offered allocate costs, raised petition certiorari brief. some evidence. absence record, assumed say manufacturer proves results own retain exists, disregards salutary rule litigants civil allowed frame cases trial desires. principle includes introduction wishes introduce Often difficult. Courts conclusions presented. Palmer Connecticut Railway Lighting 544, 379, 336; Bigelow RKO Radio Pictures, 251, 574, 652. Findings subject attack available produced. suggestion better futile, furnishes rule, majority approval used logically requires represents 31 replace price. impelled stock, reasons doing lay realm compulsion. acted keep line complete, serve preserve will. Any caused replacing damage condemnation proceedings. 729. 311. long 44 934. 1012, held Company wholesaler copper. Between September 28, 1917, 1918, 12,542,857 copper 23.5¢ pound. demand Industries Board producers 21, 1917. Company, producer, apparently cooperated establishment maintenance argued 26.8¢ pound—the States. paying correct. paid. measures owner's page 565. Consequently, dismissing company's affirmed. acceptance approaches anomalous require persons general anyone1 later higher requisitions power it; compulsion hardly severe. choice or, best, economic hibernation worst, extinction. situations parallel may, here, determines article sense. gives condemnee increased hands takes obtain obtained. compensation.'2 34 predominant acquiring affected order, different national scale regulations. sought itself unique opportunity purchase. 35 Frankfurter's points several protests Regulations controlling sought. course introduced. once set aside direct attack, Whether normally admissible not,3 articles control, maintain fix Therefore, today irrelevant should admitted. 36 RUTLEDGE, concurring. Six reversed, equally divided groundings. am partial groups, state my independently. 38 be, brother REED join think, wartime furnish Perhaps view qualified further, limitation adjustments beyond permissible entail destruction values inherent receives uses.1 39 think reference these, least presumptively apply until sustains sustained award. 40 burden, agree, costs,' 'when put pecuniarily taken.'2 Payment this, 'felt obliged certain alh ough loss, * organization together.'3 reason go purchase them, processed. incurred 41 basis, damages. compensate unimpaired will,4 obtainable prospectively within future period, property's nature, sources. asserts value' theoretical preserving said best substitute rate consideration. difference present verbal. event actually keeping satisfied unimpaired; words, prevent accrual injury concerning seems me thing allowing proof, reflects solely injury, valid loss. substance form permitting elements entirely policy Court's decisions injuries.5 45 forth respecting difficulties, indeed near impossibility, conclusion. Court. JACKSON, DOUGLAS joins, dissenting. 47 appear placed decisions. 288, 53 75. decide, do, supported substantial lack evidentiary failure material issues. Instead, effect sets interpretation 'recognized assortment publications whatever merits attention outweigh specific 48 Taking this: Claimant among chops. sold. chops, viz: labor. claimant's uncontrolled mounted until, fair allocation hog, costing produce claimant permitted collateral benefits supplying patrons, heavier shutting customer hoped-for day normal business. decided claimants' compensating advantage going customers, offer. company Constitution guarantees contends, spite hard see how always required equal never regulating commodity bound adequately compensatory sense, chooses. so, considerably, disastrously, retarded. indispensable itself, long-range success controls, voluntary identified 51 repeal suspend Amendment. River Collieries, 341, 343, 566, 1014; Cohen Grocery 255 81, 88, 298, 299, 516. obvious guaranty becomes meaningless first, 'war powers,' figure compensation.1 52 remembered such, controlling. Amendment's 'exact Government'2 price—it former considered it, because, market, perhaps key Original yield factor. price3 provide usually relevance original situation, seriously denied. over-riding free-market turn soundest otherwise error thinking Limiting scope authorized, find calculation purposes complying requirements. 1943 308 operated inspection. Livestock, Meats, Wool Market Statistics Related Data 1945, compiled Livestock Branch, Production Marketing Department Agriculture, 31. 1942 218 inspection, 1944 322. Ibid. consisted following: 40,000 Cured Regular Hams, lb. range Clear Bellies, 15,000 Picnics, 30,000 Salted Fatbacks, Refined Pure Lard, prints (30 lbs. carton) After advisement, following reargument, calls consideration, however summary. 'Application Adjustment Prices Commodities Services Contracts Subcontracts,' pursuant Procedural 6, 5087, Order 9, 5444. (See 5088 application.) regulations relief sellers made, proposed make, 'contracts subcontracts' application lain dormant filing December 13, 1947, counsel files Reconstruction Finance chain title O.P.A., through Temporary Controls, administration 15, R.F.C. withdrew insofar pertained suggest dormancy renders proceedings, moot, premature, intimation. 'contractor subcontractor' ordinary special apart scheme relating technical faced need particularize. Counsel advise us interpreted (1) commodities, (2) authorizing retroactive requisition transactions completed readjustment unnaturally, states applicability forr eadjustment 'to readily apparent terms.' construction administration, reject unnatural comes post litem motam years application. promulgated successor agency liquidating administration. With respect owe rulings setting, remaking reject. provisions contracts relate seller purchasing paid, adjustment. approved, retained price; disapproved, refund. Brown, 137 233, 240. commodity, application, refund made. short, belated novel pendency moribund R.F.C., withdrawn bar suit. done purchased previous month cost. $15.35 $14.78 January, $14.01 $13.96 November, 1942. 54. Moreover, weights definite weight markets. 'numerous by-products,' computation 'such casings, grease, fertilizer, hair, complex.' Packers) (1929) 213 219, respectively; see, generally, Clemen, By-Products Industry (1929); Moulton Lewis, Microscope (rev.ed.1940); Readings Industry, collected Packing, University (1941); Rhoades, Merchandising Packingshouse Products, Tolman, Packing-House (1922). hold, overall operations, consistent 'On transferred (from departmental accounts another), blood, bones, tankage, glue etc., ascertainable outside packers perforce arbitrary valuations having probable relation either Again green stage transferred, obtains stage, deductions estimated nonexistent 'green' certification internal transfer presents, accordingly, interminable reviewing body.' Report Trade Commission Meat-Packing (1920), Part 56. utilization objections thereto discussed 535—539. significant none 130 protestants Appeals. Cf., court's 'It notable fact, according accounting, habit showing low positive carcass-meat departments, while exhibiting large 'specialty' chief somewhat extraordinary affairs being transfers.' great deal passed 1920 report, 1945. 537. Profits Study Research, Financial Analysis L.R. 790; Agnello 1925, Controls (1947) 45—47, 73—75. study 520 processors, foregoing references separate tabulations 79 study. Moody's Industrials, Poor's Records, Reports packers. 19. packers, slaughterers, non-processing non-slaughterers. comparison base (1936—39 average) shows slaughterers: Net sales: 1943—$4,575,528,000 (after renegotiation refunds)/base period—$2,382,211,000; income taxes: 1943—$125,463,000 refunds)/ period—$24,415,000; $50,402,000 period—$19,255,000; Return 1943—2.7%/base period—1.0%; worth: 1943—19.5%/base period—4.1%; invested capital: 16.5%/base period—4.1%. 45, 47. nonprocessing shows: 1943—$1,027,000/base period—$184,000; 1943—$390,000/base period—$147,000; 1.7%/base period—.6%; 1943—28.0%/base 6.3%; 1943—25.5%/base period—5.9%. year "Net sales.............. $14,225,056. sales........... 12,950,785. Selling, exp......... 869,770. Operating profit........... 404,500. Other income................ 18,717. Total income............... 423,217. Misc. deductions............ 13,229. Income taxes............... 176,619. income................. 233,369. Earn., pfd. share................... $40.21 com. 17.97" Manual Investments, Foreign, Industrial Securities, 1944, 647. $233,369 compared favorably preceding years: 1942—$73,292; 1941—$150,069; 1940—$148,164; 1939—d$76,936. intact, 'Throughout mentioned (prior requisition), plaintiff (respondent) obtained them.' 1022. 'If enters close, iron sledge breaks displaces stones land, chattels, request desist, refuses, threatens shall approach him; I, stones, daring him, throw molliter molli manu, fall molliter, still justification, judges demurrer. *' Cole Maunder, Roll.Abr. 548 (K.B. 1635) (as translated Norman French Ames, Cases Pleading (1875) 2). carload quantities possession title; customarily lots 500 means route trucks; customary manner $26,362.50; resulted $1 cwt. deduction quantities; '$1.00 differential intended partially defray expense quantities.' challenge reasonableness below. argues reduce return netted small quantities. But, bearing mind suit fatal weakness. smaller truck, expenses motivated invoicing, billing, handling, transpr tation. None 'loss' gross counterbalanced, extent least, expenditures. Superior Clark, 164 347, 348. All bears guiding recovery related Yakus 321 414, 64 660, 88 834; Bowles Willingham, 503, 641, 892. Nortz v 294 317, 328, 329, 428, 431, 907, 95 1346. Orgel, Valuation Eminent Domain (1936) 586. 'taking' cf., Welch, 333, 527, 787, 385, Ann.Cas. 680; Richards Terminal 233 546, 654, 58 1088, L.R.A.1915A, 887; 384, 362, 311; others amounted infliction injuries compensable, Bothwell 254 231, 74, 238; Mitchell 267 293, 69 644. 155, 165. grounding relied citation Seaboard Air Line 261 354, 664; 125, 475, Miller, 317 369, 374, 276, 336, 147 55; Walker 135, 105 553. statement, abstractly, broad enough permit contrary rulings. cited 4. contains essential taking, repaired replacement, prevented employment employees disrupted organization. 729, cited; 383, squares doctrine laid fifty ago perfect taken,' Monongahela Navigation 312, 326, 622, 626, 463, expressions Lin 304, 356, 336. '* fifth amendment stated exact government uses.' 325, 463. producers, represented committee nominated, helped elect, Thus comparable Government-dictated involved said: 'Appellant's contention fiat without support. 339, And, plain read referring mere price.'

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