Opinion ID: 248031
Heading Depth: 1
Heading Rank: 2

Heading: The Intended Use

Text: 12 But information which may justify search may not be sufficient to sustain the Government's burden of proof at the trial on the merits for forfeiture. The two judicial inquiries are essentially different in nature as well as in the quantity and quality of evidence required. Brinegar v. United States, 1949, 338 U.S. 160, 172-173, 69 S.Ct. 1302, 93 L.Ed. 1879, supra. This is so even though its burden is but the lesser civil preponderance of the evidence rather than the criminal beyond a reasonable doubt standard. Lilienthal's Tobacco v. United States, 1878, 97 U.S. 237, 24 L.Ed. 901; Stagner v. United States, 5 Cir., 1952, 197 F.2d 992; United States v. One 1955 Mercury Sedan, 4 Cir., 1957, 242 F.2d 429; United States v. One 1954 Mercury 2-Door Sedan, D.C.E.D.Va.1955, 128 F.Supp. 891. The libel of forfeiture charged these materials with being property    which shall be found in the possession or custody or within the control of any person, for the purpose of being sold, or property found in the possession of any person intending to manufacture the same into property of a kind subject to tax for the purpose of selling such taxable property in fraud of the internal revenue laws, or with design to evade the payment of such tax, Int.Rev. Code of 1954, § 7301(a) and (b). The truck was charged as being property    used to transport    property described in subsection (a) or (b). § 7301(e). If such charge is established in fact the property becomes forfeit both under Section 7301 and Section 7302, which declares that no property rights shall exist in any property intended for use or which has been so used in violating the provisions of the internal revenue laws and possession of such property shall be unlawful. 13 It was the suspicion of the Investigators that Patenotte was supplying raw materials to moonshiners. And, indeed, the mere possession of seven and one-half tons of rye — a quantity which the Agricultural Agent testified would supply the agricultural needs of the whole county for a year or more — is a circumstance which may be considered. More particularly is this so when it is carried on a truck along with 1,364 empty gallon jugs and 3,700 pounds of sugar — a combination which, as the Government's brief notes, lacked only fire and water to constitute the entire ingredients necessary for the manufacture of moonshine whiskey. 14 In testing whether these and other circumstances were sufficient it must be remembered that the charge was that the Owner-Claimant Patenotte intended these supplies for sale to persons engaged in the manufacture of non-tax-paid liquor and not, as so common, for use by him in its manufacture. For the Government agents were quite free in admitting that Patenotte did not have a reputation as a moonshiner himself. This was made clear on the cross-examination of Fred D. Shanks, group leader of the Gulfport, Mississippi ATU office. 15 Q. You testified earlier you never found any stills around his property. A. I said on his property. 16 Q. On his property. Have you ever known Mr. Patenotte to be in the whisky business, to operate a still? A. No, sir. 17 Q. He doesn't have any reputation for that? A. No, sir. 18 Q. Does he have a reputation for selling or buying moonshine whisky? A. No, Sir. 19 Having thus limited its case to Patenotte's role as a supplier and transporter of contraband materials, the Government must prove it. What further evidence was introduced to substantiate this allegation? Investigator Dunn testified to general information that Patenotte was a supplier. Langton testified that he had heard this from other agents, but he couldn't remember who, or when, or just what they had told him. He also had a tip from a confidential informer with a reputation as a moonshiner, whose name he refused to reveal, that raw materials were being kept on Patenotte's farm. Shanks testified that mainly, my first source of information in this respect would be from other investigators of the Alcohol Tax Unit, although he, too, was unable to recall just what he had been told. He also testified to having been told things by local officers, highway patrolmen and state officers who objected very strongly to me ever disclosing their identity, and by private persons, all of whom were reliable and credible. 20 All admitted that Patenotte had a license to carry on a glass business and was a legitimate farmer as well. No one had any information whatsoever regarding the specific contents of his truck on October 9, 1957, or their intended use. 3 Quarles, who admitted having made whiskey and being convicted for internal revenue violations, testified that he had no knowledge that Patenotte was selling supplies to moonshiners, and that he had never bought any from him. He also testified that he thought this sugar was to be used for hog feed (at 3¢ a pound, rather than the more common blackstrap syrup at 30¢), that it was (as the agents agreed) unfit for human consumption, that he had never made any whiskey from sugar of that type, and didn't know of anybody else who had. To this was added the ironic fact that the ATU had at one time sold Patenotte 200 forfeited glass gallon jugs, presumably with no intention that they be used in an illegal business. 21 In addition to admitting that Patenotte did not even have a reputation as a still operator or dealer in whiskey, Langton testified that they had never received any complaints regarding Patenotte's activity and that he had never given them any trouble. Dunn testified that he, at least, had never talked with Patenotte. Although he had been under investigation by the ATU for several months the agents had been unsuccessful in finding anything illegal in his operations. 22 In addition to this loose, general hearsay testimony, the other evidence was of a guilt-by-association character. Langton testified that he had information that the Broaduses were getting their supplies from Patenotte. Although he admitted that frankly, I don't know what his [Broadus] business is, he testified that L. L. Buster Broadus has a record and reputation for violation of the internal revenue laws. Johnny Cash, whom Langton testified was a New Orleans sugar, jug, and barrel dealer, was at Patenotte's farm on March 20, 1957, and was seen loading a truck with sugar in New Orleans which he drove onto Patenotte's farm April 2, 1957. And Patenotte was seen with Johnny Cash loading sugar into Patenotte's truck on May 7. Jerry Wayne Johnson, whom Langton testified had been arrested for violating internal revenue laws, was seen driving a truck, apparently coming from Patenotte's drive in Pineville, Mississipi, about 2:30 a. m. — the still of the night — May 21, 1957. And Deputy United States Marshal Daniels testified that he served warrants on William Ernest Balius, a known bootlegger, on Patenotte's farm in July 1957 — though at the time he was digging a fish pond with a bulldozer and had not been operating a still. 23 Obviously some of these facts give rise to strong inferences, many perhaps indicating that under these circumstances Patenotte must have been trading in these materials for the purpose of supplying moonshiners of that area. Especially is that so in the face of complete silence by Patenotte showing his purpose for having these goods. Stagner v. United States, 5 Cir., 1952, 197 F.2d 992, 994; Kent v. United States, 5 Cir., 1946, 157 F.2d 1, certiorari denied 329 U.S. 785, 67 S.Ct. 297, 91 L.Ed. 673; United States v. One 1955 Mercury Sedan, 4 Cir., 1957, 242 F.2d 429, 431. Whether those inferences may be drawn and whether, if drawn, they are sufficient would ordinarily have to be determined by us in response to a claim of error, as asserted here, that the evidence was wholly inadequate. 24 But we think it inappropriate for us to undertake that here. The admissible has been so inextricably interwoven with the inadmissible that neither we nor the trial judge can, with assurance of fairness to Government and Claimant alike, safely assay this evidence either for its legal sufficiency or as the basis for possible factual inferences perhaps, but not necessarily, drawn. We cannot be at all assured that had the trial judge carefully hewed to the line of admissibility as to the merits, he would have drawn the inference of illicit purpose. For example, what reliable informants told the officers was certainly relevant and significant on the validity of the search. But on the trial of the merits it was wholly inadmissible hearsay on the crucial issue of purpose. Reputation of others might likewise have a relevance on both validity of search and on the merits. But the inherent difference in the two inquiries requires that for its use on the merits, the evidence of such reputation be in such form that it would have been admissible as such had it been an ordinary civil forfeiture case uncomplicated by a problem of illegal search. 25 We do not say that a District Judge, with the wisdom and experience and judgment inhering in that responsible office, may never try these two claims together. We do say, however, that where that is done the record must not leave doubt that the Judge was aware of the dual nature of the inquiry and the extent to which, in each, the various types of evidence could and could not be properly used. 26 This record leaves considerable doubt. The interests of justice require that there be a new trial on the merits uninfected by problems of the search whose validity is now established. Bryan v. United States, 1950, 338 U.S. 552, 70 S. Ct. 317, 94 L.Ed. 335; Fireman's Fund Ins. Co. v. Wilburn Boat Co., 5 Cir., 1958, 259 F.2d 662, certiorari denied 359 U.S. 925, 79 S.Ct. 607, 3 L.Ed.2d 628. 27 Reversed and remanded.