Evening star., 1944-05-03
Highest Court Weigh,
0PA Right 10 Limit
Steuart Operations
Hearing Is High Lighted
By Charge Thot Agency
Allotted Violations

Ihe right OF the Office of Price
Administration to limit the opera
tions of dealer in rationed COM
modities for violation of rationing
regulations was before the Supreme
Court for determination today, with
the conclusion of arguments in an
appeal by L. P. Steuart & Bro.
from restrictions imposed by the
OPA for alleged irregularities in OBJ
tanning and selling fuel oil.
The case, heard yesterday after
noon, was high lighted by the ac-
cusation of Renah F. Camalier,
Steuart counsel, that the OPA had
aided in some" of the violations
laid to the oil company.
Delay in Filing Complaint.
Mr.. Camalier had pointed out that
the complaint against Steuart, al
leging 227 violations, had not been
filed until late last year-about two
months after the end of the 1942-43
heating season, when the irregular
tiles are said to have occurred, and
Justice jackson asked if the Gov
ernment agency knew of the alleged
violations before the time action was
taken.
Eyes sir, I'd even go further in
this court and say they abetted
some of them." the lawyer respond
ed. He did not amplify, and that
line of questioning went no further.
The suspension order issued
against Steuart, after an OPA hear
ing, was under authority of an OPA
regulation, and restricted it's deal
ings to customers served in the pre-
Irationing year of October, 1941-Oc-
tober, 1912. The Government argued
the right to take this action was
derived from the Second War Pow
ers Act
The firm contends, however. that
Congress did not intend the applica-
ton of such restriction, having
provided by criminal penalties for
past violations and by the injunc-
tive power proposed to guard against
future violations.
Upheld by Appeals Court.
The United States Court of Ap-
peals upheld the order, but its
effective date was deferred pending
decision by the Supreme Court,
the Government considering the
question presented of such impor-
tance that it did not oppose the
Steuart application for Supreme
Court review.
The Government contended that
Steuart procured and sold oil with
out the required rationing coupons
and also failed to keep records
properly.
The OPA seeks to punish Mr..
Steuart for not being able to comply
With all those cumbersome rules"
which marked its early operations.
Mr.. Camalier told the court. He
said that the agency's regulations
were much harsher than the pen
alties spelled out in the law and
could impose an economic death
sentence" for even unintentional
violations. If the order is enforced
he said, his client either would be
! ava W. oil ol DuSlllCSS OT WOulO
operate at a loss.
ALLEGATION Power"
Thomas I. Emerson, deputy OPA
administrator, presenting the Gov
ernment case. insisted that the sus-
pension power is an exercise of the
ALLEGATION power" He asserted the
OPA has the right to allocate ra-
toned commodities to "trustworthv''
persons, although, he added. it would
have to set reasonable" standards
Suspension orders, the Official said
are " much more efficient" for
policing rationing than are injunc-
tions, as the withholding of supplies
cuts down the opportunity for vio-
lations.
He said the agency was reluctant
to suspend Steuart operations en-
tirely because of the possible ad-
verse affect on the needs of the
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