Legal Document

347 U.S. 535 74 Supreme Court Reporter 745 98 L.Ed. 933 ALLEN et al.v.GRAND CENTRAL AIRCRAFT CO. Number 450. Argued May 11, 12, 1954. Decided 24, [Syllabus from pages 535-536 intentionally omitted] Mr. Robert L. Stern, Washington, D.C., for appellants. Richard W. Lund, Beverly Hills, appellee. Justice BURTON delivered the opinion of Court. 1 The principal question decision is whether Defense Production Act 19501 authorized President to apply administrative action enforcement its wage stabilization provisions. For reasons hereafter stated, we decide that it did. 2 There here also such may be applied even after restrictions placed on wages under Title IV Act2 have expired, provided limited violations antedating expiration. Our answer in affirmative. 3 Appellee further claims pending proceeding should enjoined because mere conduct might cause irreparable damage. given below, find argument untenable. 4 Appellee, Grand Central Aircraft Company, a California corporation which was engaged, 1951, production and repair aircraft equipment Glendale, California, Tucson, Arizona. November 4, 1952, Wage Stabilization Board3 filed complaint with National Enforcement Commission4 alleging substance appellee, between January 26, 1, had paid increases an order freezing at levels 25, 1951.5 Those payments consisted totaling about $5,500,000, including $750,000 alleged been excess ceilings. 14, 1953, Commission appointed Phil C. Neal hear evidence as Commissioner recommend determination issues proceeding. He set case hearing February 24 Los Angeles, but as, stated so still stage.6 5 13, appellee instant suit United States District Northern Southern Division. asked court restrain defendant members Board, Commission, officials Twelfth Region Commissioner, hearing. Only regional were served. In complaint, denied violated or any regulation it. claimed procedure then being followed unauthorized by Constitution statute that, if originally authorized, authorization now expired. Finally, would inflict damage upon A three-judge Court, convened 28 Code KF62 (1952 ed.) § 2282, Annotated KF65 U5 granted restraining interlocutory injunction sought against After trial, made permanent. 114 F.Supp. 389. appealed this 1253, U.S.C.A 1253. Stay denied, two Justices dissenting one not participating. Norback versus Co., 345 988, 73 1128, 97 1397. Probable jurisdiction appeal noted. 346 920, 309. 6 somewhat comparable decided Texas favor employer June Jonco Corporation Franklin, 392, Chief Circuit Judge Hutcheson dissenting. That judgment reversed per curiam, failure exhaust remedy. 868, 126. I. 7 We consider first claim injunctive relief ground proposed hearings weakening bank credit depriving essential working capital. On basis, court's ultimate issue validity procedure. has permanent Government, behalf appellants, contends acting prematurely seeking before carrying prescribed least point where faces some immediate compulsion greater probability than established. 8 are held authority merely findings Regional subject review Commission. show no violation At most, they will concerned appellee's payment ceilings extent $750,000. If found then, 405(b) 1950 President's delegated authority, certify governmental agencies, Bureau Internal Revenue income-tax purposes, disallowance all part illegal payments. argues proceedings carry possibility business expense, $750,000, more less, up total paid, exceeding $5,500,000. threat jeopardize depends grave doubt right thus test exhausting bringing closer focus done. However, clear once Government hold established, litigant cannot enjoin them his otherwise inconvenient embarrassing. & Diesel Equipment Hirsch, 331 752, 777 779, 67 1493, 91 1796. '(T)he expense annoyance litigation 'part social burden living government." Petroleum Exploration, Incorporated Public Service Kentucky, 304 209, 222, 58 834, 841, 82 1294. See also, Myers Bethlehem Shipbuilding Corp., 303 41, 47, 459, 461, 638; Chicago Air Lines Waterman S.S. 333 103, 112—113, 68 431, 436—437, 92 568; Franklin 9 It there properly authorities who seek determine lawful do so. We, therefore, go directly heart controversy, program validly authorized. II. 10 General Procedural Regulation Revised, issued Economic Administrator, August 21, 17 Fed.Reg. 7737. conducted regionally provision (NEC) certificate prescribing amount disregarded executive departments other agencies determining costs expenses purposes law regulation. ESA Gen. Order 18, July 28, 6925. Standards Administrator 15, April 3, 2994. does complain noncompliance these regulations. complains rather purporting violates Federal Constitution. 11 finds creation machinery 1950, when read connection entire Act. section derived 5(a) 1942, 56 Statutes-at-Large 767, 50 Appendix, (1946 965(a), 965(a). To without reference model out context Congress enacted 12 1942 vital wartime measure, adopted October 2, directing 'on general stabilizing prices, wages, salaries, affecting cost living'.7 it, relied presidential geared critical necessity speedy compliance. Its purpose check inflation. subordinated individual convenience nation-wide standards. sanctions entrusted capable prompt action. Section that— 13 'No shall pay, employee receive, salaries contravention regulations promulgated prescribe salary regulation.' U.S.C.Appendix U.S.C.A.Appendix, 14 broad powers promulgate regulations.8 he Executive 9250, Cong. Page 1259, 7871, 'to control far possible inflationary tendencies vast dislocations attendant thereon threaten our military effort domestic economic structure, effective prosecution war'. established Office Stablization, headed Director. II national 'Wage Salary Policy'. This rates War Labor Board froze generally prevailing September 1942. III rules 'for propriety decreases accordance Order'. processes making specific determinations same enabled through disregard computing taxes, compensation cost-plus contracts transactions. 15 27, James KF105 F3 Byrnes, Director, personal approval President, later serve us.9 They certify, disallowances based Board's their Act.10 16 30, 1943, govern procedures those Boards dealing program. likewise ones involved case. 4681 seq. Nearly 100,000 nearly $30,000,000 1947.11 matters public knowledge well known Congress.12 support natural presumption Congress, subsequent actions, accepted legitimate interpretations Shapiro States, 335 16, 1375, 1383, 1787; Helvering Winmill, 305 79, 82—83, 59 45, 46, 83 52; Norwegian Nitrogen Products company 288 294, 310—315, 53 350, 356—358, 77 796; Hecht Malley, 265 144, 153, 44 462, 465, 949. 18 Under determined, many practice Troy Laundry Wirtz, Cir., 155 Reporter, 2nd Series 53; N. Atlantic Woodworth Kavanagh, 102 9, affirmed, 202 154. 19 comparison terms 8, Acts impressive. 20 follows: 21 wage, salary, title. 64 807, ed., Supp. V) 2105(b), 2105(b). 22 follows, almost word word, language earlier Act, supra, Pages 6—7. While substitutes phrase 'any compensation' place 'wages salaries,' order' 'the regulations,' sections inescapably same. 23 make delegate conferred him it.13 His orders follow pattern ones. 10161, 2071 note, 6105, 6106, Part created new agency Agency, Administrator. responsibility stabilization. within agency, functions determined Eric Johnston, 739. 25. Gen.Wage 816. closely resembled establishment Commissions. Such Commissions 405(b). 'conclusive therein stated. government receive certifications disallow certified.' WSB Resolution 1(c), 6028, 6029. described resolution Board. 7284. 25 2994, standards disallowances, recognition extenuating mitigating circumstances. 26 Effective 403(b) amended establish 66 300—301. defined day, 6925, defining covered Commission's supra. obviously reminiscent 1942.14 27 legislative history confirms parallel nature programs. occasion recurring need demands Korea elsewhere necessary maintain large goods while meet long-denied increasing needs Nation's civil economy. expressly declared purpose.15 reenacted, temporary emergency during World II.16 Senate Report bill said: 29 'This subsection (405(b)) adopts respecting penalties committee doing business, contract payments, establishing price ceilings, deterrent.' S.Rep. 2250, 81st Cong., 2d Sess. 39. 30 regulations, practices fully reported Congress.17 31 Despite 706 Act,18 forth margin, vested Courts left only agree. appears VII containing so-called 'general provisions' reads sharply restricting just described. interpretation, however, face Instead revival 405(b), primarily applicable activities applies naturally enough controls, controls allocations material. construction similar restrict provisions reenacted.19 32 correctness above interpretation underscored 31, inserted 405(a).20 strikingly introduced controls. Obviously substantially eliminated existing 706. As 405(a) controlling over 706, provisions.21 33 noted arguments submitted concerning constitutionality premature rule until required exhausted.22 34 termination substantive expired disallowing past, future, 35 statute, effect expiration governed following savings statute: 36 'The release extinguish penalty, forfeiture, liability incurred unless provide, treated remaining force sustaining proper liability.' (Emphasis supplied.) 109, 109. 37 express, implied, contrary policy statute. All occurred 1951. relating supporting fixing did expire 1953. Neither date nor six-month extension liquidation restricts 109 survival proceedings.23 38 precise object prevent cutting off appropriate measures enforce relation occurring Allied Oil 341 5, 71 544, 546, 95 697; Fleming Mohawk Wrecking Lumber 111, 1129, 1375. 39 situation expiration, 1946, 1942,24 seen continued 1949. note transferred Department Treasury. 9809, 10(b), Cong.Service, 1877, 14281, 14283. present instance, Director Mobilization. Exec. 10494, 6585. delegation §§ 703 705, remains 1955, 717(a), 23, 40 upheld, enjoining reversed. 41 Reversed. 798, amended, 65 131, 296, 129, 2061 seq., 'Title IV—Price Stabilization' 401 412, 803-812, 304, see 2101—2110, 2101 2110. Created, 300 301. 10377, 6891; 9977, NEC NEC. states Neal, staff Mobilization ready lifted. 765, 961 itself amendment Emergency Price Control approved 901 title, 643. legislation. 1944, 'such concurrent resolution, proclamation, prescribe.' 767. postponed, year time, 1947. 643, 306, 60 664, 966, 966. 'Sec. 2. may, time Act; exercise power department, officer direct. * *' 962, 962. Stabilization—Pt. 4001—Wages Salaries, 8748 Subsequent amendments change tax determinations. '§ 4001.2 Authority '(a) . 'are rulings, thereunder. Any rulings orders, thereunder, conclusive Departments regulation, either heretofore promulgated, maximum thereof, calculating deductions revenue laws States. pursuant final Tax proceedings.' 8749. From December 29, 1945, 68,233 cases, resulting $19,018,820.19, handled Termination Report, 428—441. 1947, 30,071 $11,822,609, (1946—1947) 223—235. cases resulted closed penalty disallowance, others terminated consent hearings. 282 processed Boards, although 1946 9801, U.S.Code 1865, 13435, activities, violations, carried Treasury Ann.Reps. 62—63 (1947); 33—34 (1948); 26—27 (1949). Not life extended three times (see 7, supra) administration reviewed annual appropriation Hearings House Subcommittee Appropriations Agencies Appropriation Bills Pt. 78th 1st 667 668; 240—241, 303—304; 79th 12—13. 403. determines impose substantial portion economy, administer independent purpose: *. utilize services, information, facilities administered department.' 137, 300. 2103, 2103. (Delegations accordingly, Agency.) 703. (a) Except specifically provided, (and hereby create corporate deems necessary), authorize redelegations deem appropriate. 816, 2153(a), 2153(a). 704. rules, form manner, contain classifications differentiations, provide adjustments reasonable exceptions effectuate circumvention evasion, facilitate rule, Act.' 2154, 2154. 4. Functions (hereinafter referred Commission) be, respect persons Stabilization, Railroad Airline accrued, directive act. foregoing named constituent organizations Agency instituted organization settlement proposal approval. Agency. '(b) transmit directives, policies 5. Redelegation authority. imposition of, said act, compensation, redelegated above.' Fed.Reg., 6926. develop whatever strength purpose. circumstances, task requires diversion certain materials civilian use related purposes. expansion productive beyond needed demand. proceed once, economy maintained effectiveness hardship, normal purchases must curtailed redirected. 'It objective accomplish operation intention promote defense, meeting, promptly effectively, requirements programs security foreign objectives, preventing undue strains distribution use, framework, practicable, American system competitive enterprise.' 799, U.S.C.A.ppendix 2062, 2062. S.Rep.No. 4—5, 20—40. generally, terminate 1952. IV, stabilization, 822. latter 131. prior discussed opinion. First Ann.Rep. Joint Committee Production, 1040, 82d 98—103 (1951); Second Committee, 83d 108—119 (1952). Whenever person engaged engage acts constitute application practices, enforcing compliance provision, showing injunction, order, bond. district courts Territory subpena actions duty by, criminal account brought transaction constituting occurred. resides transacts business. Process civil, served wherein wherever found; witnesses attend run into district. title operate defeat suit, action, prosecution, theretofore thereafter commenced, right, liability, offense committed order. No assessed arising thereunder supervision Attorney General.' 817 818, 139, 2156, 2156. logical emphasized fact bills became contained, introduced, commodity Thus become Committee. separate origins them. '* made, money property, requirement (as control) bases gain purposes.' 136, 2105(a), 2105(a). (b) consistent, likewise, superimposed already contained judicial enforcement. solution reached provisions, 205(a)(b) (c), control. 33, 925(a)(b) 925(a—c) text 403 uses 'enforcement' referring created, provides Conference Amendments 1952 conference substitute intended preclude (Wage Stabilization) from, present, policies.' H.R.Rep.No. 2352, 24. constitutional objections suggested taken violate (1) Fifth Amendment property due process law; (2) Sixth Seventh jury trial; (3) Eighth authorizing excessive fines; (4) Article I, unapportioned direct tax; (5) improper Executive; (6) Tenth attempting legislate reserved 717. N Dec. Immigration Nationality Decisions (priorities allocations) (expansion capacity supply), (general provisions) close 1955. Titles (price stabilization) V (settlement labor disputes) Notwithstanding foregoing— '(3) existence exceed six months agency.' 822, 2166. 10434, 6, Admin.News, 994, 809, suspended opperate proceeding, possessed, incurred, committed, date.' Subcommittees Appropriations, 439—441, Supplemental Bill, 1954, H.R. 6200, 423—431. Though most lifted, effect. Liabilities lifting thereby washed out. Hark, 320 531, 536, 359, 362, 88 290; Utah Junk Porter, 328 39, 44, 889, 892 (90 1071); Collins 49, 893, 894 1075). And explicitly accrued rights liabilities preserved started investigation foreclosed stage, exist defeated, 119, 1133,

Classification Label: 8