Evening star., 1946-10-08
U. 5. 10 Appeal Ruling
0PA Prices Need Not
Apply 10 Seized Goods

4 All appeal 10 L1e supreme
Court from a decision by the
Court of claims that OPA cell
ing prices do not necessarily ap-
ply to goods the Government
Seizes under its wartime powers
was planned today by the Jus
tice Department.
! The ruling came yesterday in a
suit by John j. Felin g. Co. of Phila-
delphia, which told the court it had
to spend $50, 0,293 to replace 225, 900
pounds of pork and lard requisi-
toned by the Government in March,
1943. for lease-lend purposes.
The ceiling price on the items was
$25,112.50. The higher replacement
cost was explained by the firm on
the basis that OPA ceilings had not
then been placed on live hogs.
Replacement Cost Upheld.
The court ruled that the packing
concern was entitled to recover the
full replacement cost, and the de-
cision written by Judge Samuel E.
Whitaker declared:
I'VE have heretofore held that
the market place is not always the
measure of just compensation, and
we do not think it Is in this case" !"
Attorney Arthur L. Winn, jr., who
represented the company along with
Attorney Wilbur LIE Roe, jr., said In
a statement that 1t was q test case.
He added:
THE principle established applies
to tens Of millions Of pounds Of meat
taken by the Government during the
war period when OPA prices were,
for substantial periods on important
meat products, below the cost of
production"
Mr.. Winn described the decision
as "a blow to price control" How
ever, it was plain that the Govern
ment was not stopping at this point.
Direct Conflict Claimed.
OPA declared in a statement that
it was urging the Justice Depart
ment to appeal the case. The agency
claimed the decision was "in direct
conflict" with a ruling made last
June in Chicago by the United States
Circuit Court of Appeals. That case
involved condemnation Of beef car
cases prepared by the Cudahy Pack
ing Co., OPA said, and the court
held that the amount due Cudahy
was the ceiling price.
The Justice Department, the
court recalled, had claimed the
suit was IAN indirect attack" on
the maximum price regulations and
that "sueh an attack can be made
only before the Emergency Court
of Appeals" Justice Whitaker de-
clared: This is clearly incorrect y
The department had argued that
the OPA price was all the COM
pany could have obtained for the
meat If it had sold it in the public
market.
The court, however, pointed out
that the firm did not sell the meat
to the Government, but "its property
has been taken by the Government. u
Obligation Of Just Payment.
an such case plaintiff is clearly
entitled to demand the price the
Constitution says it is entitled to, N
the court declared.
! Concurring in the decision were
Judges Marvin Jones and Benjamin
H. Littleton and Chief Justice
Richard w. Whaley. Judge Jones
is q former war food administrator
under the Agriculture Department.
/ In summing up the court de-
clared:
Defendant (the Government), of
course, as wartime measure, has
the right to fix maximum price
at which goods can be sold, but
when it takes a citizens property
it is obligated to Justly compensate
him therefor. As general rule it
has not justly compensated him
unless it pays him an amount suf-
ficient to take care of the loss 1t
infiicts on him as result of the